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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.
The procedure adopted to conduct the survey and collection of information is also described in the study. Recommendations to improve the appraisal system have also been included.its journey from the year it was founded to the present year. sales figure.“To analyze the present performance appraisal system of National Thermal Power Corporation Ltd. challenging also to analyze the performance appraisal system of such a large organization. product profile. . It is interesting and at the same time. functions of various departments etc.4|Page PREFACE It gives me great pleasure to bring out this project study entitled. market share.”. 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. This project study contains necessary information related to the company viz. . total capacity.
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 .
QUESTIONNAIRE . BIBLIOGRAPHY 2.6|Page CHAPTER 5CHAPTER 6ANNEXURE FINDINGS AND ANALYSIS CONCLUSION AND SUGGESTIONS 1.
link between rewards and performance to increase motivation level of employees . I analyzed the data and provide the necessary suggestions to improve the system. . factors in business dynamics to grade employees on objectives & transparent productivity parameters. functional. In my own style. assessment of training & developmental needs of the individuals and make them aware about the parameters used to evaluate their performance. For this purpose.7|Page EXECUTIVE SUMMARY In my project. I have studied the present appraisal system of NTPC by analyzing the details of the appraisal system. departmental & individual objectives . self appraisal followed by reporting officer & higher authority’s assessment .e. I have tried to find out whether the present appraisal system is effective enough to serve the purpose of performance appraisal i. articulate the organizational. websites and magazines to gather material related to the topic. After collecting the information.”. I also went through different books. entitled-“To analyze the present performance appraisal system of National Thermal Power Corporation Ltd. 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.
Within a span of 30 years. . A public sector company wholly owned by Government of India.8|Page PROFILE OF THE COMPANY INTRODUCTION National Thermal Power Corporation Limited (NTPC) is the largest thermal power generating company of India. 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. Based on 1998 data. with power generating facilities in all the major regions of the country. carried out by Data monitor UK. NTPC has emerged as a truly national power company. it was incorporated in the year 1975 to accelerate power development in the country.
Rourkela (120 MW) and Bhilai (74 MW). construction and operation of power generating plants and also provides consultancy to power utilities in India and abroad.749 MW through its 13 coal based (17. NTPC has set new benchmarks for the power industry both in the area of power plant construction and operations. NTPC acquired 50% equity of the SAIL Power Supply Corporation Ltd. NTPC's share on 31 Mar 2004 in the total installed capacity of the country was 19. With its experience and expertise in the power sector.4% and it contributed 27.480 MW).1% of the total power generation of the country during 2003-04. 7 gas based (3.9|Page NTPC's core business is engineering. NTPC is extending . As on date the installed capacity of NTPC is 21. (SPSCL).955 MW) and 3 Joint Venture Projects (314 MW). NTPC is also managing Badarpur thermal power station (705 MW) of Government of India. This JV company operates the captive power plants of Durgapur (120 MW). It is providing power at the cheapest average tariff in the country.
In 1991. eco-friendly and econurturing initiative . This quality of ash produced is ideal for use in cement. Germany for renovation and modernization of power plants in India.10 | P a g e consultancy services to various organizations in the power business. 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 was among the first Public Sector Enterprises to enter into a Memorandum of Understanding (MOU) with the Government in 1987-88. NTPC has also taken proactive steps for ash utilization. NTPC has entered into a joint venture with Alstom. NTPC has undertaken massive afforestation in the vicinity of its plants. NTPC is committed to the environment. it set up Ash Utilization Division to manage efficient use of the ash produced at its coal stations. building material. the company endeavors to improve overall socioeconomic status of Project Affected Persons. CENPEEP is efficiency oriented. NTPC is making constant efforts to improve the socio-economic status of the people affected by its projects. generating power at minimal environmental cost and preserving the ecology in the vicinity of the plants. (USAID). cellular concrete.a symbol of NTPC's concern towards environmental protection and continued commitment to sustainable power development in India. Plantations have increased forest area and reduced barren land. concrete. NTPC has been Placed under . 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. Through its Rehabilitation and Resettlement programmes. As a responsible corporate citizen.
NTPC is well on its way to realize its vision of being "one of the world's largest and best power utilities. Inspired by its glorious past and vibrant present.11 | P a g e the 'Excellent category' (the best category) every year since the MOU system became operative. Recognizing its excellent performance and vast potential. powering India's growth". .a potential global giant. Government of the India has identified NTPC as one of the jewels of Public Sector 'Navratnas'.
Civil. 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. Human Resources Function has formulated an integrated HR strategy which rests on four building blocks of HR viz. Besides a comprehensive one year training comprising theoretical inputs as well as on-the-job training. 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. Control & Instrumentation and now encompasses Computer Science. Electrical. HR and Finance disciplines also. As part of post employment training and .500 employees to fulfill its business plans. Commitment 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. 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 well as specific need-based interventions based on scientific Training Needs Analysis. 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. MDI. PMI places emphasis on management development. In order to tap the latent talent among non executives . NTPC has created 15 project training centres. 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. While the project training centres (Employee Development Centres) have specialized in imparting technical skills and knowledge. Delhi. 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. BITS. Besides opportunities for long term education are also provided through tie ups with reputed Institutions like IIT. (M. 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.Tech in Power Generation Technology). 2 simulator training centres and an apex institute namely 'Power Management Institute' (PMI).13 | P a g e development opportunities. Pilani (B.Tech) etc.
Besides a management journal called "Horizon" is published quarterly to enable the employees to share their ideas and experiences across the organization. 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. NTPC offers best quality of life through beautiful townships with all amenities such as educational. Quality Circles have been set up in various units/offices in NTPC. health & well-being and social security systems leading to high level of commitment. medical and recreational opportunities for employees and their family members. These Centers give a good insight to the employees about their strengths and weaknesses. A culture of celebrating achievements and a strong focus on performance are a way of life in NTPC. 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. NTPC has developed strong employee welfare.14 | P a g e and make use of their potential for creativity and innovation. the gaps in their competencies which they can bridge through suitable support from company. The motivation to perform and excel is further enhanced through comprehensive NTPC Rewards and Recognition system. Due to innovative people management practices there is a high level of pride and . Demonstrating its high concern for people.
.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 .
(N) Calculation of amount of salary deducted during HPL. especially nomination papers. no. (K) Promotion of employees against whom disciplinary action has been taken. (C) Check whether the personal file is complete in all respect. . (M) Period for which leave is credited in advance for both executive & nonexecutives. (D) Extent of annual assessment being done in case of employees (i. (E) Review discussion with executive before annual assessment. directions (procedure being followed in C & D categories).e. ESTABLISHMENT (A) Verification of characters & antecedent as per govt.17 | P a g e FUNCTIONS OF HR-EB (EMPLOYEE BENEFIT) SECTION 1. (H) Test for promotion of steno typist & stenographer. of employees). of complete reports received & total no. (I) Promotion of W 2 to W 3 & W 6 to S 1 employees. joining formalities etc. (B) Checking of Submission of relevant and complete document before joining. (J) How is period of unauthorized absence being treated in promotion cases. (G) Communication of adverse remarks. (F) Appoint appraising authorities for different levels. (L) Promotion in different categories in time with promotion policy/ channel of promotion.
(C) System of check in case surety resigns in HBA. (E) Commencement of recovery of HBA. (a) Eligibility (b) Amount of house building advance. Number of employees who have been granted study leave.18 | P a g e (O) Grant of study leave as per rules. (P) Diseases for which quantitative leave is sanctioned. (B) Penal interest being charged in case of default under conveyance advance scheme. (c) 2nd advance in case of conveyance. 2. (D) Hypothecation of vehicle being ensured or not. . ADVANCES (A) House building advance / conveyance advance sanctioned strictly as per rules.
furniture etc. . TYPES OF QUARTERS A type . (C) Responsibility of security of plant & township both. (B) Issuance & entitlement of different items to various employees with in the company.For E3 & above D type . for education institute.For all employees B type .For E5 & above (B) Regarding education policy NTPC provides only infrastructural help like building. (D) To manage all activities related to VVIP’S visits. 2.19 | P a g e FUNCTIONS OF HR-ES (EMPLOYEE SERVICE) SECTION 1.For W8 & above C type . TOWNSHIP ADMINISTRATION (A) Allotment of quarters to employees according to the availability of quarters & priority of the employee. (C) To ensure proper allotment of office space for officer’s cabins. For plant security CISF personnel are deployed while for township security private guards are used. EMPLOYEE SERVICES & OFFICE MANAGEMENT SYSTEM (A) To fulfill the requirements of furniture in different departments of the company.
20 | P a g e (D) Welfare activities include ladies clubs. resident’s welfare associations etc. (c) Company also pays 90 % of the tour to the employee once in a year. (b) Picnics upto 180 kms. canteen. (a) Company provides Rs. . are organised by the company for employees. 1100 for marriage & a car for 3 days to the employee.
diploma and certificate holders). 2. operator etc. . where they are required. (E) They give incentives to the employees for their good performance. (C) There is a provision of recruitment of fixed number of physically handicapped employees in the company.e. MANPOWER PLANNING (A) Redeployment of employees like draftsman. (C) They address the grievances of the employees and provide information to the management. RECRUITMENT (A) IE section is responsible for recruitment of trainees/apprentices (ITI. (B) IE section also look after the complete Human Resource Management System of the company. to other departments.21 | P a g e FUNCTIONS OF HR-IE (INDUSTRIAL ENGINEERING) SECTION 1. (B) They also engage visiting doctors for the dispensary of the company on temporary basis. BTPS. (D) They are engaged in the transfers of the employees with in the project i.
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. .
25 | P a g e COMPANY PROFILE November. NTPC .An organization symbolizing reliability. December. Construction of the Singrauli-Kanpur line of 400 kV initiated. The expansion and advancement of the company was continuous and speedy. strength and a responsible growth was born. The Rihand project was also . Year 1978 The year saw the initiation of a lot of developmental activities. was successfully commissioned on February 13. gathering pace and heading on to what is today projected as a benchmark in the power generation sector. The Farakka project was also approved by the Government Year 1982 Steering ahead with times. 1976. The first super thermal power project at Singrauli was cleared by Government of India. the first unit of 200 MW of Singrauli. 1975 Foundation laid for NTPC. Implementation of Ramagundam and Korba Projects was cleared by Government of India. 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. A modest beginning with strong determination and high spirits. moving ahead.
Auraiya and Anta. Keeping in line with all the developmental activities. Ramagundam. . A capacity addition of 3. for the first time. Year 1987 The first bud sown by NTPC burst full bloom.a breakthrough in power transmission...26 | P a g e cleared by Government of India with British assistance.the Consultancy Wing was launched. The Korba project added first 500 MW Unit. the first 210 MW unit of Vindhyachal project. The World Bank agrees to provide $ 485 million for three combined cycle projects at Kawas. the HVDC (High Voltage Director Current) technology employed for power transmission from Rihand to Delhi. which now has a capacity of 2260 MW. Rihand. Farakka also entered operational phase. Year 1989 To serve the power sector in India and abroad . The Singrauli project achieved the full capacity of 2000 MW. Year 1984 A technological revolution . acting as a window for the globalization of NTPC operations.234 MW was made at Korba. Auraiya and Anta together. The first unit of the Korba project was commissioned and the Ramagundam project began commercial operation by 1983. Vindhyachal. also came on stream. The first unit of 500 MW at Rihand was also commissioned by year 1988. Year 1986 NTPC entered into the 500 MW era by synchronizing its first 500 MW unit at Singrauli in 1986.
To improve efficiency and profitability. Two units with a capacity of 210 MW each were commissioned by NTPC after take over. NTPC achieved a complete turnaround in the operation of the station. The Kawas project with a capacity of 645 MW became fully operational by year 1993.27 | P a g e Year 1990 NTPC's first gas based combined cycle power plant at Anta. Year 1994 The first unit of Jhanor-Gandhar Gas Project was synchronized. • To acquire state-of-the-art technologies and practices to optimize performance by plants. To achieve a synergy between environmental concerns and utility needs. 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. • • . Kahalgaon Project went on stream by synchronizing its first unit. The Centre for Power Efficiency and Environmental Project (CENPEEP) was set up. Rajasthan achieves full capacity. aimed at reducing environmental pollution. Year 1991 saw the commissioning of the first unit of the Dadri project. Year 1992 Unchahar project with a capacity of 420 MW was taken over from the Uttar Pradesh Rajya Vidyut Utpadan Nigam (UPRVUN).
the first Naphtha based plant of the country at Kayamkulam with a capacity of 350 MW came on stream. By the year 1997. Year 2000 The power generation capacity of this premier organization reaches a towering high of 19. evolving planned and organised functioning and ensuring dedication. Year 1998 By this year. NTPC has been declared worlds sixth largest thermal power producer during 1998. Developing a participative . NTPC also took over Tanda Thermal Power Station (440 MW) of Uttar Pradesh State Electricity Board (UPSEB). with committed time schedules.000 MW capacities by year 2012. Building up well defined. the Government also approved the Simhadri project with a 1000 MW capacity and the Faridabad Gas project with a capacity of 430 MW.435 MW capacities moving towards substantial 40.28 | P a g e Year 1995 The first 500 MW unit of Talcher Super Thermal Power Project commissioned. A beginning made with Koldam. NTPC's foray in the Hydro sector. U.K. promoting and organizing an integrated development of thermal power in India. short and long term plans. by Data monitor. the first Hydro Electric Power Project with a capacity of 800 MW in Himachal Pradesh. Pursuing its major objectives of planning. loyalty and promptitude of those involved.
the organization strove towards. acclaim and appreciation and above all assuming the role of a market leader in the field of power generation. Winning laurel. . responsible development and continuous progress and growth. leading on and reaching pinnacles of success. improvement everyday. All these moves leading to industrial harmony and progress of the company. Keeping pace with its ongoing mission of constant. Duly recognizing the socio-economic needs and aspirations of its employees and undertaking full scale efforts to meet them. Venturing out. NTPC-A globally recognized organization for commitment to Quality in works and services.29 | P a g e management culture. innovating.
07 gas/ liquid fuel based & 03 joint ventures with Steel Authority of India Limited.30 | P a g e PRODUCT PROFILE NTPC is engaged in generating power through its different power stations viz. It is also managing Badarpur Thermal Power Station (705 MW) of Government of India. of stations 14 7 4 25 Capacity(MW) 22395 3955 1054 27. . 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. Its total commissioned capacity including the joint ventures is 22. gas/liquid fuel based & joint ventures.249 MW. In total it has 13 coal based.coal based.404 ESTABLISHMENT .
85 Billion Units (BUs). It once again surpassed all MoU targets for the year 2002-03 in the Excellent category. 6. 5. 2.57 crore. Some of the highlights of its excellence are-: 1.58 crore and Net Profit after tax Rs.88% and 12. Turnover of Rs. Generated 140. This is besides the generation of the NTPC SAIL joint venture companies.19.13% respectively. Total dividend paid for 2002-03 is Rs.19 BUs.76% over previous year’s generation of 133.3607. 3. With 19% of the country’s installed capacity.984. . NTPC contributed 26% of electricity. 708 crore. 4. Return On Capital Employed (ROCE) and Return On Net Worth (RONW) 10.31 | P a g e SALES FIGURES AND MARKET SHARES NTPC has shown a remarkable performance in the areas of operation and maintenance. an increase of 5. Achieved all MoU targets in the excellent rating during the year 2002-03 for the 16th consecutive year.
Capacity addition of over 9370 MW planned for 10 th plan and about 11210 MW for 11th plan. 2003. 1000 MW capacity added during 2002-03. Projects totaling 5300 MW capacity under various stages of construction. .32 | P a g e 7. The fourth 500 MW unit at TalcherKaniha has also been synchronized in October. 8.
(HR-IE) ASTT. (HR-EB) Also look after welfare functions MGR. (HR-EDC) MGR. (PR) ASTT. (HR-EDC) Exec.OFF (HR-IE) ORGANISATION CHART OF HR DEPARTMENT AT BADARPUR THERMAL POWER STATION .MGR.MGR.H.&W/M Trg. (HR-ES) DY.OFF. (HR-EDC) SR.MGR.MGR. (Rajbhasha) DY. (HR-EB) SR. (HR-ER)W. (HR-EB) ENGR. (CSR) A. MGR. (HR-ES) SR. ED activities SR. (HR-ES) Schools & G. (HR-EB/IE) ASTT.F OFF. (HR-ER&W) OFF. (HR-ES) MGR. (HR-ER) Discp.MGR. (LAW) Also look after ER functions SR.OFF.OFF.MGR.E.MGR.Matters DY.33 | P a g e GM DGM (HR) SR.MGR.
Training and Development 5. Self Improvement . Promotions 2. In simple words. PURPOSES OF PERFORMANCE APPRAISAL 1.34 | P a g e PERFORMANCE APPRAISAL DEFINITION Performance appraisal includes all formal procedures used to evaluate personalities. Transfers 3. 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. Personnel Research 6. performance appraisal is the systematic evaluation of the individual with respect to his performance on the job and his potential for development. Wage and Salary Administration 4.
Graphic-Rating Scales 5. Employee Ranking 3. Check-Lists 6. Unstructured Appraisal 2. Critical Incidents 7.35 | P a g e METHODS OF PERFORMANCE APPRAISAL TRADITIONAL METHODS 1. Behaviorally Anchored Rating Scales . Forced Distribution 4. Field Review MODERN METHODS 1. Management by Objectives 2.
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. 3. 2. individual differences in performance can make a difference to the company’s performance.36 | P a g e BENEFITS OF PERFORMANCE APPRAISAL EMPLOYER’S PERSPECTIVE 1. Despite traditional focus on the individual. It provides a rational basis for constructing a bonus or merit system. Providing feedback is a part of the performance management process. Despite imperfect measurement techniques. Documentation of performance appraisal and feedback may be needed for legal defense. 5. . 6. 4.
PROBLEMS AFFECTING THE VALIDITY OF PERFORMANCE APPRAISAL SYSTEM 1. Fairness requires that differences in performance levels across workers be measured and have an effect on the outcomes. 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. Assessment and recognition of performance levels can motivate workers to improve their performance.37 | P a g e EMPLOYEE’S PERSPECTIVE 1. 2. . Performance feedback is needed and desired by the individual employee to improve his/her performance. 2. 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. 3.
average constant behaviour is not checked.38 | P a g e 3. This type of error results in wrong evaluation of the performance of subordinate. STRICTNESS ERROR Some other types of supervisors have a tendency to be harsh in their ratings. . RECENCY EFFECT Often some raters evaluate persons on the basis of their performance in recent few weeks. LENIENCY ERROR Some supervisors have a tendency to be easy raters. 4. Lenient raters consistently assign high values to their subordinates. 5. 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. • To study about the system of self appraisal. appraisal by reporting officer.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. by reviewing officer and final assessment by moderation committee. • To study about create a direct link between rewards & performance to increase the motivation level of employees.
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 still sufficient scope for improvement in the performance appraisal system below E7 level. 2. managed by National Thermal Power Corporation Ltd. . There is no direct link between the rewards and performance of individual employee. 4.. All the above mentioned problems need immediate improvement and attention of the management of the company. 6.Below this level no weightages are assigned to different attributes which differ according to their importance. 5. They are not aware about the parameters on which their performance is measured. 1 . There exist communication gap between superiors & their subordinates. 3.40 | P a g e SCOPE OF STUDY In Badarpur Thermal Power Station. Formal feedback is not provided to the employees on regular basis.
6. 8. To collect information from functional heads about the technicalities involved in performance appraisal viz. Discussion with senior officers to understand the expectations of the company. Prepare questionnaires on the basis of above information. about performance appraisal. 2. magazines.41 | P a g e RESEARCH PROCEDURE STEPS IN RESEARCH 1. Gather information from different sources like books. 5. 4. the organizational & departmental structure. KRA’s & suggested weightages. 3. Meetings with employees of different departments to incorporate their views. Study the existing review system of the company. . Obtaining the opinions & expectations of employees at different levels of the company. Understanding the nature & scope of business. internet etc. 7.
2. The major emphasis was on the discovery of ideas & opinions of the employees at different levels to improve the existing appraisal system. On the basis of responses from the employees and the information gathered from other sources. Two methods were used for the study-: 1. The different strata or homogeneous groups formed were-: 1. The survey of concerning literature. prepared the report with mentioning the necessary changes required in the appraisal system. Executives 2. Workman’s . The main purpose of the study was to formulate the problem in appraisal system for investigation.42 | P a g e 9. The experience survey SAMPLING DESIGN The sampling design used for the study was “Stratified Sampling”. Supervisors 3. RESEARCH DESIGN Research design was adopted for the “Exploratory Research Study”.
New Delhi. 2. For the collection of primary data following methods were used-: . SECONDARY DATA Secondary data are those which have already been collected by someone else and hence passed through the statistical process. SAMPLE SIZE In total 34 employees were interviewed during the study. Badarpur. PRIMARY DATA Primary data are those which are collected for the first time and therefore original in nature.43 | P a g e SAMPLING UNIT The sampling unit was “Badarpur Thermal Power Station”. DATA COLLECTION METHODS In the survey two types of data were collected-: 1.
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 . And the interviews were structured in nature. (C) QUESTIONNAIRE METHOD I prepared a structured questionnaire on the basis of information collected from different sources. I observed the behaviour & tone of the employees while giving the answers. (B) INTERVIEW METHOD I took personal interviews of the employees at different levels to get their opinions & expectations. But the style of observation was unstructured. The questionnaire contains both open & closed ended questions.44 | P a g e (A) OBSERVATION METHOD In observation method. 2.
45 | P a g e Statistical tools used in the project study are-: 1. LINE GRAPHS . TABLES 2. PIE CHARTS 3. BAR GRAPHS 4.
Some of the employees were inaccessible as they were absent during the period of survey.46 | P a g e LIMITATIONS OF STUDY 1. 4. Night shift employees were unapproachable due to odd timings of their job. Some of the documents of the company were not accessible due to confidentiality. . 3. The organization was very large. 5. Some of the employees were not very forthcoming in their responses & reluctant to answer the questionnaire. And some are influenced by the opinions of their colleagues. so it was not possible to cover all the departments. Responses of few of them were biased due to fear of the management. Many employees didn’t have time to give interviews. 6. 2. 7.
The present appraisal system. 12% 38% Yes No Can’t say 50% Q2. is an effective one. Do you feel comfortable with your reporting officer while discussing your KRA’s/ performance? 29% Yes No Can’t say 12% 59% . according to you.47 | P a g e FINDINGS AND ANALYSIS Q1.
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% . Are you aware of the criteria used for your 3performance appraisal? Q4.48 | P a g e Q3.
21% 24% Q6. Yes No Can’t say 6% 55% 29% Yes No Can’t say 65% . 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.
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% . 26% 32% Yes No Can’t say 42% Q8. In case of adverse entry. The formal feedback and development of new or better job related skills are in accordance with your performance appraisal.50 | P a g e Q7.
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% . Formal appraisal system helps in discovering your true potential for higher responsibilities. 21% 32% Yes No Can’t say 47% Q10.51 | P a g e Q9.
15% Yes No Can’t say 35% 50% Q12. Performance appraisal system helps in reducing the communication gap between the superiors and subordinates. 24% 29% Yes No Can’t say 47% .52 | P a g e Q11.The performance appraisal system helps superiors to know their employees in better way.
53 | P a g e Q13. 32% Yes No Can’t say 9% 59% Q14. Introduction of a computerized system will make the performance appraisal system more effective. below E6 level. Mid-term review (after 6 months) of employee’s performance. 32% Yes No Can’t say 9% 59% . instead of annual review is beneficial.
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. 6. According to those who know about the criterion. 5. it is not sufficient to judge their performance. Proper weightages are not assigned to different attributes which differ in their importance. following points has emerged out which require the attention of the management-: 1. 2. 3. There is a wide gap between the self assessment by the employee and the formal appraisal done by the organization. 4. The present performance appraisal system below E7 level is not effective enough to serve the purpose of employee’s appraisal.54 | P a g e FINDINGS AND ANALYSIS On the basis of the survey conducted. . Many employees are not aware about the criterion used for their appraisal.
Training is not provided to the employees on the basis of his/ her performance appraisal rating. Formal feedback is not provided to the employees on regular basis. 11.55 | P a g e 7. 12. 13. There is considerable amount of communication gap between the superiors & subordinates. 8. 9. The appraisal system does not help the employees to discover their true potential for higher responsibilities. 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. Employees do not get sufficient opportunity to appeal to the higher authorities in case of adverse entry. 10.
4. so that executives at lower levels should also be aware about their functions based on these objectives. 2. 3. job responsibilities etc. . Appraise should be allowed to present their own opinions and perceptions freely but in a calm and factual manner. “Management by objective” approach should be introduced below E6 level and upto E1 level. 5.56 | P a g e CONLUSION AND SUGGESTIONS 1. Performance appraisal should not be concentrated to forms only but on its purpose of performance improvement by removing barriers to job success. Before setting the KRA’s. otherwise the procedure of setting KRA’s is wastage of time. the employees should prepare themselves by reviewing their work beforehand. 6. Weightages should be assigned to different attributes according to their importance. identifying barriers they faced in doing their jobs and refamiliarise themselves with their job descriptions. Both appraiser & appraise should combinedly set realistic targets that can be achievable.
Training should be provided to the employee on the basis of his/ her performance appraisal rating. It’s a two way communication process. 10. 11. 14. 13. based on their performance. 12. by the manager. . It will help him/her to get new skills. 9. Communication gap between the appraiser & appraise should be reduced by means of performance appraisal & regular meetings. The procedure of performance appraisal should be transparent in the sense that the employee should be aware about his/her appraisal rating. Behavioral aspect of the employee should be given due importance while reviewing his performance. Make employees more accountable towards their duties and responsibilities. so that problems can be prevented in their early stages.57 | P a g e 7. 8. Formal feedback should be provided on regular basis to the employees. It will motivate the employee. Reporting officer should make the employees aware about the criterion used for their performance appraisal. therefore a subordinate can also initiate the process. Monetary & non monetary incentives should be given to the individual employee on the spot.
16.58 | P a g e 15. as he/she can see his/her ratings on the computer whenever they want. there should be potential appraisal along with performance appraisal at this level and above. there should not be fixed time limit for promotion and employees get higher responsibilities on the basis of their potential and aptitude. A password should also be assigned to the employee to keep his/her ratings confidential. . So. A computerized system should be introduced to fill the forms and submission at supervisor level and above. It will reduce the time required to do appraisal and at the same time bring transparency between the appraisers and appraise. After the level of manager.
ntpcindia.com www.Kothari Marketing Research . Ralph Westfall. Stasch MAGAZINES Business World Business Today Outlook The Times of India The Hindu Business Standard Line WEBSITES www. Boyd.Ashwathappa Research Methodology .K.Harper W.toolpack.co.com .L. Stanley F.Gary Dessler Human Resource & Personnel Management .T.com www.C.in www. N.google. Chhabra Human Resource Management .59 | P a g e BIBLIOGRAPHY BOOKS Human Resource Management .ntpc.
is an effective one. 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. according to you.bpubs. YES NO CAN’T SAY .60 | P a g e www. YES NO CAN’T SAY 6 Monetary and non monetary rewards given to you are based on your performance appraisal rating.com QUESTIONNAIRE 1 The present appraisal system.
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 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.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 8 In case of adverse entry. YES NO CAN’T SAY .
YES NO CAN’T SAY 14 Introduction of a computerized system will make the performance appraisal system more effective. YES Reasons: 1 2 3 15 Your valuable suggestions to further improve the performance appraisal system. instead of annual review is beneficial. YES NO CAN’T SAY 13 Mid-term review (after 6 months) of employee’s performance.62 | P a g e 12 Performance appraisal system helps in reducing the communication gap between the superiors and subordinates. Suggestions: 1 2 3 Category: Supervisor/ executive NO CAN’T SAY . below E6 level.