A SUMMER TRAINING PROJECT REPORT 0N “EMPLOYEE PERFORMANCE APPRESIAL SYSTEM OF LOWER GRADE EMPLOYEE AT

PASCHIMANCHAL VIDYUT VITRAN NIGAM Ltd.”
SUBMITTED TO MAHAMAYA TECHNICAL UNIVERSITY, NOIDA IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION
SUBMITTED BY: GAURAV KUMAR 102637023

SUPERVISOR Assistant Professor

INVESTIGATOR Roll No:

VIDYA SCHOOL OF BUSINESS BAGHPAT ROAD, MEERUT UTTAR PRADESH 2011-12

Company Certificate

College Certificate

It is certified that the summer training project report entitled ―performance appraisal of employee ― submitted in partial fulfillment of the requirement for the degree of Master of Business Administration, to Mahamaya Technical University, Noida is a record of bonafide Summer Training project work carried out by Mr.Gaurav kumar , Roll No ----------------------------. The data given in the summer training project report is genuine and original to the best of my knowledge. The summer training project report is complete in all respect and is fit for submission.

Date:

(Dr Satish Kumar) Director

I have collected the data personally. The data given in the Summer Training Project Report is genuine and original. Date: Name Roll No Session Address Gaurav kumar 2011-12 . Noida is a record of bonafide Summer Training project work conducted by me.DECLARATION It is certified that the Summer Training Project Report entitled “performance appresail of employee” submitted in partial fulfillment of the requirement for the degree of Master of Business Administration of Mahamaya Technical University. I also declare that it not submitted to any other university for the award of any degree or diploma. Further.

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I wish to express my sincere regards and heartful thanks to Mr. I am extremely grateful to Dr. Meerut for his valuable and scholarly guidance. Vidya School of Business. K. Pathak. Librarian of this college for gracious cooperation in making this research projects a success. Satish Kumar. P. Summer Training Project Report. Vidya School of Business. Co-ordinator . P.Assistant Professor.ACKNOWLEDGEMENT It gives me immense pleasure to express my indebtedness and deep sense of gratitude to my supervisor and guide Mr. Meerut for having extended his guidance during the course of this research project. --------------------. I acknowledge my heart full gratitude to my dear father and mother Sh. Suresh kumar & Smt. Asstt. Vidya school Of Business.K. Ramesho Devi respectively I shall be falling in my duty if I do not thank to Bajaj computers who typed this report well in time. Director. & Mr Pawan Kumar . for their cooperation that enabled me to complete this dissertation. Librarian. Roopak. His sympathetic and helpful attitude and motivation helped me to work on this dissertation. . This acknowledgement would be incomplete without grateful mention of all the people who formed the sample and were kind enough to fill in the questionnaire and respond warmly to my questions.Sachin Chauhan.. Class Coordinator and Mr. I am extremely thankful to Mr.

Last but not the least.) . Gaurav MBA (3rd Sem. I thank ALMIGHTY for His blessings.

In this section. process and significance of performance appraisal. etc My research project deals with ―Performance Appraisal as carried out at PVNL PVT LTD‖. suggestions and feedback. The second section deals with performance appraisal. graphs relating to the research study and important documents upon which the project is based. etc.. conclusions.PREFACE Managing human resources in today’s dynamic environment is becoming more and more complex as well as important. The fourth and final section of this report consists of extra information that I related to the main contents of the report. I have studied &evaluated the performance appraisal process as it is carried out in the company. this section attempts to give detailed information about the company and the nature of its functioning. In the third section of my report. . It includes the company’s history: its activities and operations. this section also contains my findings. I have conducted a research study to evaluate the process of performance appraisal at PVNL PVT Ltd. In this report. These annexure include some graphs and diagrams relating to the company. job security. I have given a brief conceptual explanation to performance appraisal. It contains the definition. The first section of my report deals with a detailed company profile. Recognition of people as a valuable resource in the organization has led to increases trends in employee maintenance. organizational structure.

SERIAL NO 1 2 3 4 5 6 7 8 9 10 11 12 COVER PAGE COMPANY CERTIFICATE COLLEGE CERTIFICATE DECLERATION ACKNOWLEDGEMENT LIST OF CONTENTS LIST OF TABLES LIST OF FIGURES PART I OF THE REPORT PART II OF THE REPORT REFERECNES ITEM APPENDICS ( QUESTIONNAIRE ) .

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PART 1 .

COMPANY PROFILE .

The Discom comprises more then Thirty lac of consumers with and average annual demand Rs. At the same time AT&C losses have come down by 10. The total number of Distribution Circles and Divisions in Different Zones are 19 and 56 respectively along with 17 nos. The total number of distribution transformers are 135202 with a capacity of 7600 MVA. 3900 Crores. Metering with AMR’s. The tools used in achieving the commercial result include the massive disconnection drive against the defaulting consumers.e. Bulandshahar. providing ABC conductors in Theft prone areas DT Metering. Saharanpur and Moradabad and each is headed by and officer of the rank of Chief Engineer. Besides there is one circle each for works. Baghpat. J. PVVNL has 564 of Secondary sub-stations with an installed capacity of 6569 MVA. issuance of notices under section 3 and 5 to the defaulting consumers. Stores and Civil Construction works under direct control of the Discom Head Quarter.P. Bijnor. MRI based billing of the consumers with load above 25 KVA and replacement of electro mechanical meters through electronic meters and adopting anti theft measures i. The . Saharanpur. Ghaziabad. of Test Divisions. the implementation of the OTS scheme. bill distribution system through post office. The Discom has achieved the remarkable enhancement in the revenue realization and thru rate. PVVNL is trying to implement the best practices in the distribution system. The Discom covers in its jurisdiction the areas of District Meerut. vigorous combing in the high line losses areas.43% since 2003-04. The Discom comprises of three distribution zones based at Meerut. Moradabad. Nagar and Rampur. Gutambudh Nagar. Double Metering of the consumers.PASCHIMANCHAL VIDYUT VITRAN NIGAM LIMITED Paschimanchal Vidyut Vitran Nigam limited came into existence in July. Muzaffarnagar. 2003 as subsidiary company of UPPCL.

62 17766.16 16698. Black & White 5. Television a) Color b).71 279811.89 441417. 1 1 2 3 4 5 6 7 Year Thru Assessment Realization Collection AT&C Rate (In Lacs (In Lacs Efficiency Losses (In Rs.73 5 195324.49 29.52 4 213807.91 97.25 357753.08 31.54 93.01 16652.) (%) 3 1.09% in 2008-09 as against 91.19 crores in 2008-09. The thru rate has gone up by 41.39 386618.58 256686.87 1.72 1.43 96.37 460663. Power Plug Actual rating or 60 Watt eac Actual rating or 40 Watt eac 60 Watt up to three plugs an 100 Watt 60 Watt 500 Watt up to three plugs a .13 398208.14 29. Tube Light 3.44 2 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 Procedure for Determination of Connected Load 1.36 92.25 12567.45 15086. Light Plug 4.00 290797.80 1.82% in 2008-09 since 2003-04.34 2.04 321648. The realization has gone up from 1953.collection efficiency has gone as high as 97.82 7 37.65 1. Bulb / Fan 2.57 34.83 Input Energy (MU) 8 11909.24 crores in 2003-04 to 3866.92 2.39 27.87 215817.36% in 200304. The data confirming the status for last five years are tabulated as under :— S.50 35. No.44 13367.22 89.95 6 91.14 239821.05 233208.09 95.

6.5 Ton 10. Air Conditioner 1 / 1. 2) For non-domestic light & fan consumer load of every bulb shall be taken as 100 Watt. load of plug point shall not be counted separately. Dessert Cooler 8.e. Fridge 7. 5) The equipment which is under installation and not connected electrically. the water pump. washing machines. Guidelines for Building/Colonies Determination of Load in case of Multi-storied (i) For domestic – 500 watt per 10 sq. Geyser 9. Water lifting pump 250 Watt 250 Watt 1500 Watt 1500 Watt / 2200 Watt 180 Watt or 360 Watt (Accor Note:1) If any equipment is connected with plug point equipment’s load or plug point rating whichever is maximum shall be taken. 6) For the purpose of assessment in domestic connections. In such case. (ii) For commercial – 1500 watt per 10 sq. meters of the constructed area or requisitioned load. 3) The load for Arc / induction furnace shall be worked out on the basis of 600 KVA per ton of the capacity of the furnace. equipment stored in warehouse / showrooms either as spare or for sale is not to be considered as ―connected load‖. Only heating or cooling use of these apparatus / loads shall be taken into account as per prevailing season (i. whichever is higher. 1st April to 30th September for cooling use and 1st October to 31st March for heating use). Appliances less than 200 watt shall not be taken into account. 4) The higher rating of only one equipment shall be considered if both Geyser and Air-conditioner (without heater) are installed. meters of the constructed area or requisitioned load. whichever is higher. microwave ovens. . small domestic appliances shall be considered for assessment for one hour working per day on 100 % load factor.

5. In case the sanctioned plan indicates two or more buildings in the same premises or the colony. water lifting pump. basis by installing a transformer in his premises at applicant’s cost and also an undertaking shall be obtained agreeing to convert to H.. staircase area and balcony area. In case only a portion of the building / colony is constructed as against the entire building/colony sanctioned as per plan. 6.T. Water tank area and Chajja projection area shall not be considered for calculating the built up/constructed area. (v) Following diversity factors shall be considered for determining the maximum demand: a) Non Domestic Area: 0. corridor / campus lighting and other common facilities. and as per the sanctioned plan the built-up area of building/colony is more than 500 Sq. Domestic Area: 0.90PF= 84 KVA or 100KVA which is the nearest higher Standard rating as per BIS. 3. For car parking area.e. Building is 75 KW. However if the transformer capacity so calculated does not exceed 15 % of the lower Standard rating. the transformer rated capacity shall be fixed to the nearest available capacity i. 75 KW / 0. streetlight if any. they shall be clubbed together to calculate built up/constructed area. when the requisitioned load of the building/ area exceeds 50 KW . Mtr.T. 4. (iv) The constructed area calculated for (i) and (ii) above shall exclude the constructed area arrived at in (iii). then in such cases space for transformer shall be given and power supply shall be arranged on L. 50% of the area shall be taken for calculating the built up/constructed area.5 . If the requisitioned load of the M. actual load shall be calculated.S. 2. in future. the Licensee can permit the erection of lower capacity transformer provided the requisitioned load is within the transformer capacity.(iii) For lift. Multistoried building means a building having three or more stories excluding basement.75 b) Note:1. or requisitioned load is 25 KW or more.

HUMAN RESOURCE AT PNVL HR VISION “To enable our people to be a family of committed world class professionals. instead of the transformer of capacity indicated above. the extra cost being met out by the Licensee. making PNVL a learning organization” HR GOALS  To develop an organization having knowledge based competitive edge. . The Licensee can provide higher capacity transformer if found necessary to cater to other loads in the area.7.

First Division Graduate Engineers/ Post graduates are hired through nation-wide open competitive examinations and campus recruitments. competence. Create motivational enabling climate of empowerment. Hiring is followed . productivity.    Undertake organizational renewal. Competence building. HR STRATEGIES   Institutionalize core values for actualizing throughout the organization. Commitment building. system orientation. participation. To create culture of team building. We currently employ approximately 24500 people at PVNL. sensitive line manager and equip them to their own HR initiative and succession planning. economy. commitment. Culture building and Systems building are the four building blocks on which our HR systems are based. We are strongly committed to the development and growth of all our employees as individuals and not just as employees. RECRUITMENT We believe in the philosophy of 'Grow your own timber'. creativity and flexibility. Communication within and outside company. 'People before PLF (Plant Load Factor)' is the guiding philosophy behind the entire gamut of HR policies at PVNL. periodic assessment to have a re look at various initiatives and their impact. Our 'Executive Trainee' scheme was introduced in 1977 with the objective of raising a cadre of home grown professionals. knowledge management. career growth. restricting. Imbibe a culture of openness. communication and training. empowerment and accountability to convert knowledge into productive action with speed.

Yoga and meditation are part of our orientation-training programmer for Executive Trainees.PVNL has a standardized and formalized performance management system. Mentors are senior executives with 10-15 years of experience in PNVL who act as a friend. managerial and potential competence in an objective and transparent manner. Corporate Social Responsibility ..To keep the trainees physically active and agile. caring for their physical health and mental alertness is as important as hard skills training. All career paths have an underlying management structure. to ensure that we deliver on our promise of meaningful growth and relevant challenges for our employees. executive trainees are attached to mentors once they are put on job. Sports infrastructure has been provided at each PNVL location and inter/intra unit matches are organized from time to time. the company promises a challenging career with an opportunity to be a partner in nation's growth. Promotions within each career path are aligned with the needs of the organization. Our talent management system comprises PERFORMANCE MANAGEMENT. A special module on corporate social responsibility is a part of orientation training which covers all the important aspects of corporate social responsibility like environment. CAREER PATHS and LEADERSHIP DEVELOPMENT. For a new recruit joining the company. Sports .   Performance Management . Mentoring "Ankur". expressions etc. Yoga . A KPA based system is designed to assess functional. exposure to on-field community development and responsibilities towards Project Affected Persons is given. Yoga sessions are scheduled every morning during the training period. body language.A formal career path and development process exists in PVNL. on job training.The orientation module for ETs include such unique practices like Theatre Workshops in order to enhance their communication skills-verbal and non verbal. team work. The system is designed to accomplish the overall organizational vision and mission by linking individual performance to the company’s objectives and strike a balance between performance and competence to help individuals excel in their fields. Succession criteria for leadership . health hazards. growth and challenge. environmental impact.      Theater Workshop . CAREER ADVANCEMENT & OPPORTUNITIES We have a well established talent management system in place.For effective socialization and transformation from training mode to executive capacity of taking responsibility. philosopher and guide to the budding power professions. safety. ash utilization etc. personality development & management modules. Career Paths . conducted with the help of professional institutions like National School of Drama. emphasis is laid on sports activities. The brand PVLN Limited holds in it the promise of high performance.In order to make new hires a part of our social responsibility drive.For the holistic development of the trainees.by 52 weeks of fully paid induction training consisting of theoretical input.

created a culture of rewards and recognitions through celebration of various achievements and events and recognizing the contributions behind such success. innovation. These initiatives include National Open Competition for Executive Talent (NOCET). professional circles are interest groups where employees sharing same interest areas get together to share knowledge and latest developments in the field. Individual development plans are made based on the gaps identified to ensure that the process of development and growth is meaningful. Leadership Development . Under this initiative. about 300 professional circles are active in the company. employees volunteer to take up improvement . In order to encourage and recognize professional circles. A management journal called ―Horizon‖ is published quarterly to enable the employees to share their ideas and experiences across the organization. COMPETE We have introduced numerous initiatives which seek to enhance the creativity. INNOVATE. positions in each career path have been identified.Quality circles were introduced as an initiative to involve every grass root level employee. Quality Circles. function or staff head. A ‘Theme’ for the competition is decided by CMD of PVNL. regional and corporate levels. REWARDS & RECOGNITIONS We have. Professional Circles. knowledge updating etc.    PVNL Open Competition for Executive Talent (NOCET). PVNL encourages formation of Professional circles for knowledge dissemination. We have a system that enables measurement of leadership effectiveness. PVNL has institutionalized a three-tier competition amongst the professional circles culminating at the company level. A panel of judges comprising of top notch PNVL executives and external experts judge the teams on their concept and presentation. Quality Circles. Anyone joining the organization can choose to pursue a business. functional aptitude and teamwork of our employees.National Open Competition for Executive Talent (NOCET) is a 3 tier theme based team event held to solicit ideas on latest issues facing the organisation. CREATE. from inception. A topic that is relevant to PVNL scenario is chosen.Potential employees are assessed for leadership competence and are groomed to occupy leadership positions in the company. Business Minds and Medha Pratiyogita (a quiz for our employees). 3-4 member teams are formulated that compete at unit. Professional Circles . function or staff career path and will be put through specific training interventions and job rotation path towards becoming a business. Currently.As a learning organisation. gap identification against an identified set of leadership competence. which provide basis for job rotation.

It is conducted in association with AIMA. Annual contests are organized at project level. share and generate solutions. Cross-functional teams participate in the game as it is multi – disciplinary in nature reflecting real life multifunctional role of business. natural beauty and close community living. PVVNL townships provide an environment of serenity. and sharing of knowledge through which employee can contribute. hospitals and clubs are provided at the townships to enhance quality of life & the well being of employees and their families. Regional and Corporate levels. It features renowned Quizmaster Derek O’Brien and his team. In 2008.   projects in their work areas. The quiz is conducted at the Project. TRAINING & DEVELOPMENT . QUALITY OF WORK-LIFE PVVNL is proud of its systems for providing a good quality of work-life for its employees. superiors and subordinates. PVNL has been winning the National Quality Circles Convention for last 4 consecutive years and has participated in International Quality Control Conventions at Bangkok(2004). Away from hectic city life. The winning team also gets a chance to participate at National and International level QC Convention. This system allows tacit knowledge in form of learning and experiences of employees to be captured and summarized for future reference. learn. codification. This is a management game that develops strategic thinking & decision making in executives by exposing participants to simulated real life business situations that help them discover new skills. Qualifying teams compete at the national level. regional level and company level in which QCs from all over PVNL compete with each other.Another initiative which is very popular among PVNL employees. Medha Pratiyogita is conducted for the children of PVNL employees.In initiative to meet our ultimate objective of becoming a Learning Organisation. Knowledge Management in PVNL. It provides adequate communication and a formal process for classification. The winning team from PVNL Ramagundam also won the national management games competition conducted by AIMA and qualified to compete at the Asia level. an integrated Knowledge Management has been developed. South Korea (2005). is called the Business Minds. from child care leave to post retirement medical benefits are extended to employees to meet any exigency that may arise in a person's life. Numerous welfare and recreation facilities including schools. Indonesia (2006) and China (2007) Business Minds. Medha Pratiyogita. In addition to providing beautiful and safe work places. An entire range of benefits. PVVNL encourages a culture of mutual respect and trust amongst peers.We have been conducting a quiz competition very successfully.

We have developed our own comprehensive training infrastructure. TRAINING INFRASTRUCTURE PVVNL’s training policy envisages minimum 7 Mondays of training per employee per year. Therefore. PVVNL has developed its own training infrastructure which comprises of – Power Management Institute– It is the apex training institute of PVVNL located in NOIDA. tennis court and gym for use of participants. EDCs serve to meet the training needs that can be catered to locally. abilities and commitment of the employees who constitute the most important asset of the organisation. PVVNL view of employee development has a very wide perspective and is not constrained to job related inputs. Training in PVVNL is carried out with short term and long term objectives to impart skills required to carry out various jobs and provide developmental input for the individual’s and organization’s future growth.PVVNL subscribes to the belief that efficiency.Employee Development Centers (EDCs) are located at all PNVL projects and stations and take care of training needs of employees at the unit. They have similar infrastructure as that of PMI and have full time dedicated staff of 150 employees across PNVL. depends largely on the skills. Our gas based simulator centre is located in Kawas (Gujarat).PNVL is the proud owner of two simulator training centres. PMI houses indoor badminton court. These simulator centres are meant give hands on experience of operating a power plant to our engineers. PNVL also extends this facility to many other organisations in power . while coal based simulator centre is in Korba. which are the only ones of their kind in the country. Employee Development Centers. swimming pool. The Institute has full time dedicated faculty and organizes training and conferences for PNVL and other companies as well. Simulator Centers . It has two residential hostels with internet broadband facility in each room. a lot of emphasis is laid on the training and development of employees. Our Training Policy envisages a minimum of 7 man days of training per employee per year. The PMI auditorium has a seating capacity of 300 and hosts many conferences at national and international level. for both coal based and gas based plants. effectiveness and success of the organisation. Hence. PMI has multiple training and conference rooms fitted with audio visual training aids. Our philosophy is to develop our own training systems and deliver training internally as far as possible. close to the company headquarters and houses a world class training infrastructure.

The awards are key indicators and milestones on our HR journey. We regularly conduct Employee Satisfaction and Organisational Climate Surveys.1. EDUCATION UP-GRADATION SCHEMES To meet the academic aspirations of employees and match them with the needs of the organisation. PVVNL sponsors fixed size batches of employees who are inducted into these courses based on their performance rating in the company and their performance in the entrance exam conducted by the respective institute. Each of these is a custom made. IIT Delhi. PLANNED INTERVENTIONS For management development. by the Great Places to Work Institute. Unlike other study leave and sabbaticals. medium term training programme. Seeking Feedback We actively seek and encourage employee feedback to ensure that our HR interventions and practices remain relevant and meaningful.industry or equipment manufacturers who send their employees for training at our simulator centres. Best Workplace in India among large organisations for the year 2008. PVVNL has tie-ups with institutes of repute like MDI. PVVNL has a set of planned interventions designed for each stage in a person’s career. India Chapter in collaboration with The Economic Times. etc. . Awards We derive immense satisfaction from the awards we receive and the resulting recognition they bestow. employees undergoing these courses do not forego their salary or growth during the duration of the course. BITS Pilani. and reinforce our HR philosophy and practices. specifically designed to give developmental input at a particular stage in the person’s career. Gurgaon. PVVNL has been awarded No.

CMD. NGOs and sector analyst WINNING ACCOLADES International Project Management Award (IPMA)-2008 silver medal for Project Excellence for Vindhyachal –Stage III (2X500 MW). Shri Chandan Roy. PNVL was recognized as the "Best Organisation in Central Sector". regulators. Mr. employee associations. 2006. Sushilkumar Shinde. state and private utilities. consultancy firms. banks and FIs. Sankaralingam.AWARDS RECEIVED BY PNVL AWARDS & ACCOLADES PVVNL Limited has been presented Scope Meritorious Award for Best Practices in Human Resource Management – 2004-05 for Innovative Human Resource Management Practices well integrated with the business requirements of the Company was presented by Shri. . Hon’ble Minister of Heavy Industries and Public Enterprises to Shri T. He is also on the Board of Damoder Valley Corporation (DVC). for his distinguished services in Engineering Sector during the year 2006 in the area of NCT of Delhi. 2006 in New Delhi. on 8th November. On the occasion of Power Line magazine’s Tenth Anniversary celebrations. on 11th October. Sontosh Mohan Dev. Ratnagiri Power Project Limited. Union Minister of Power presented “Expert Choice Awards” to honour the leading achievers in the power sector. Northern Coal Fields Limited (NCL) and Nuclear Power Corporation of India Limited (NPCIL). The awards are based on the results of a survey conducted by Power Line among a carefully selected group of 600 eminent industry experts representing all key segments of the sector including central PSUs. A mechanical engineer by profession Shri Chandan Roy is also Chairman. PNVL Limited in New Delhi. equipment manufacturers. Director (Operations). PVVNL Limited has been conferred with Eminent Engineer Award by the Instiution of Engineers (India).

“CII. Director (Finance). Most Valuable PSU by the premier Investment Journal Dalal Street at the First DSIJ Awards Ceremony held in New Delhi CII –ITC Sustainability awards 2008 to Farakka and Faridabad in the category “Certificate of commendation for strong Commitment” for exemplary performance in environmental economic social dimension. .PVVNL for his outstanding leadership and commitment in Project Management Best CFO in the Public Sector category to Shri A. Honorary Fellowship Award by Centre for Excellence in Project Management and Project Management Award to Shri R. Vindhyachal and Badarpur. Ranked No.S Sharma. 1 in Independent power producer & Energy Trader in Asia & 15th in overall performance in the Asia region in the Platts Top 250 Global Energy Company list. Institute of Chartered Accountants has awarded a Silver Shield Award for Excellence in Financial Reporting for the year 2007-08 in the category of Infrastructure & Construction sector Corporate Award 2008 for Sectoral Excellence by Dun & Bradstreet. CMD. ‘Significant Achievement’ to Ramagundam and ‘Strong Commitment to Excel’ award to Vindhyachal and Badarpur.EXIM Excellence Award 2008” to three PVNVL stations namely Ramagundam. PVVNL Ltd for his exemplary contribution in the expansion of PVVNL Limited and his outstanding role in ensuring effective governance and managing various aspects of the business by the Institute of Chartered Accountants of India (ICAI). Singhal.K.Ranked number ONE in the category the 'Best Workplaces for Large Organizations' and number eight overall for the year 2008 by Great Places to Work Institute’s India chapter in collaboration with Economic Times.

have been awarded Rashtriya Pishwakarma Puraskar for the year 2006 on 17th September 2006 in New Delhi. IEEMA Power Awards for Excellence in Project Execution-Thermal –First prize to Vindhyachal Stage III and Second Prize in Excellence in Decentralized Distribution PNVL ranked 317 by Forbes Global 2000 – PVVNL Limited the largest power utility of the country has been ranked 317th in the Annual ranking of top 2000 public companies in the world by Forbes magazine 2009. assets and market value.CenPEEP (Centre for Power Efficiency & Environment Protection) conferred by Council of Power Utilities Star Company of the year in the category of Public Sector Undertaking by Business Standard. . The ranking is based on a mix of four performance metrics of sales. 2004 and 2005 in a row. Best Employer – PVVNL has been rated as one of the top most ‘’Best Employer’’of the country for the year 2003. profit. Five employees of PVVNL Ramagundam Project received category ‘A’ award while 4 employees of PVVNL Dadri Project were presented category ‘C’ award. ‘India Power Award 2008’ in the category of ‘Energy Efficiency’ to PVVNL. Navratna Company – In recognition of its excellent performance and tremendous potential PNVL has been given the status of "Navratna" by the Government of India. Nine employees of PNVL Ltd.“Infrastructure Excellence Award” to Talcher-Kaniha Stage-II by E-18 Association with CNBC-TV 18.

Sankaralingam. promoting and implementing Best Safety Practices on 6th September 2006. Shri A. NOIDA. . V.R. The awards were presented by Sh. The Award was given on 9th June 2006 at the World Congress on Environment. Korba. Kahalgaon and Dadri projects of PVVNL Limited have been conferred Safety Innovation Award-2006 instituted by Safety and Quality Forum of The Institution of Engineers(India) New Delhi. PVVNL wins "Commendation Certificate for Strong Commitment Among Large Business Organization" in Sustainability Awards 2006. PVVNL Limited at the 17th Annual Day function of IOD held in New Delhi on 11 August 2006. Hon’ble Governor of Haryana presented the Distinguished Fellowship of the Institute of Director’s (IOD) to Shri T. Golden Peacock Eco Innovation & Environment Management Award 2005 was won by Environment Management Division. Secretary (Power) and recognize the projects for their outstanding contribution towards innovating. PVVNL Limited has bagged the prestigious DUN & BRADSTREET-AMEX Corporate Award-2006 for being Number one in the Indian Power Sector on 5th September 2006. Shahi. R. The award has been instituted by CII-ITC Centre of Excellence for Sustainability Development for the first time this year to recognize and reward excellence in Social.Kidwai. CMD.Ramagundam. Economic and Environmental Performance.

P. Government of Goa. PVVNL Limited. Best Companies to work in India – ‘Business Today-Mercer Consulting 2005’ has rated PVVNL as fifth Best Company in India to Work For. Simhadri. Franscisco Xavier Pacheco. Shri C. Shri Praful Patel. at 6th Annual Greentech Conference on Environment Management held at Panaji. 2005. Goa for his outstanding contribution in the field of Environment Management and his efforts to make PNVL a front runner in the Indian Power Sector.Jain. for the third year in succession. . CMD. Union Minister for Civil Aviation presented the Award at a glittering function at Mumbai on 11th November. Seven PVVNL Stations received CII-EXIM Business Excellence Award 2005 commendations.PVVNL Limited ranked first amongst top 10 PSEs for MOU Award for Excellence in Performance for the year 2003-04. CMD. Ramagundam.P. Shri C. CMD. Shri Montek Singh Ahluwalia. Rihand. Jain. Shri C. The Awards where given by Hon’ble Vice President of India. PVVNL is the only PSU and infrastructure company to figure in the top 10. Platts Global Energy Award 2005 for Community Development Program of the Year. Dadri awarded for “Significant Achievement” and Kawas. ’06. by a survey conducted by Grow Talent and Business World – 2005 for the second year consecutively. PVVNL also commended for his contribution as Chairman SCOPE during April 2003-March 2005 through a Special Award. Deputy Chairman. Planning Commission was also present on the occasion. Shri Bhairon Singh Shekhawat in a function organized by SCOPE at Vigyan Bhawan on 10th January. Golden Peacock Award to PMI for providing innovative training. PVVNL Limited was conferred with prestigious Greentech Life Time Achievement Award by Mr. Agriculture Minister. Great Places to Work – PVVNL was ranked as Third Great Place to Work for in India. Jain. awarded the prestigious Ernst & Young Manager Entrepreneur of the Year 2005 Award.P.

Power Grid and DVC signed a Joint Venture Agreement (JVA) for incorporation of a JV Company to set up an Online High Power Indigenous Test Laboratory for short circuit test facility in the country to ensure testing of the electrical equipments as per international standards in New Delhi. Faridabad. Farakka.22 % & 86.  The Chairman & Managing Director.53% on 26th March ‘09. Anta Bronze: Kayamkulam PVVNL HIGHLIGHTS  PVVNL's Coal and Gas stations recorded PLF of 93.  PVVNL Coal Stations recorded a PLF of 100.  PVVNL.  PVVNL Coal Stations recorded the highest generation of 588.99 MU. 2009 which is the highest ever monthly PLF for the month of April. Badarpur. on 12th May 2005. The Performance Highlights including Provisional Unaudited Profit after Tax and Income of PVVNL for the financial year 2008-09 was shared with the press. PVVNL Limited held a press conference on April 8th. with PLF of 102.Rourkela. PNVL won 09 Gold. PVVNL bagged the International Project Management Award (IPMA) for its Simhadri Project for the year 2005.90 MU. PVVNL is the only Indian Company that has been presented this Award since the awards inception in 2002. 2005 at Bangalore. Dadri. Kahalgaon. This is the highest ever recorded. 2009.71% in April. The award was given in a glittering function at London. . Koldam. Golden Peacock Global Award for Excellence in Corporate Governance 2005 – instituted by the World Council for Corporate Governance. Korba. 04 Silver 01 Bronze award on 11th May 2005 in a function at Hyderabad: Gold: Corporate Centre. The previous highest generation was 587. 2009 in New Delhi.685% on 31st March. ‘09. NHPC.03% during the month of March. a PLF 102. Rihand and Jhanor-Gandhar Silver: NSPCL. Greentech Safety Award .This award is given for outstanding achievement in the field of safety and environment management.Tanda & Vindhyachal recognized for “Strong Commitment to Excel” on 10th November. Simhadri.

02 MUs.22 MUs recorded some days earlier.25 MUs at a PLF of 98.11 MUs achieved on 08.Thermal and second prize in the category Excellence in Decentralised Distributed Power Generation. . PVVNL Vindhyachal stage III(2x 500MW) bagged the first prize in the category‖ Excellence in Fast Track Power Project Execution.03. PVVNL Limited the largest power utility of the country has been adjudged the Most Valuable PSU by the premier Investment Journal Dalal Street today.09 surpassing the previous best of 583. 2009 with highest ever single day coal based generation of 579. Surpassing the previous best of 655.  PVVNL's Coal Stations achieved highest single day generation of 583.09  PVVNL Stations recorded the highest generation of 660.22 MUs on 2nd March. where NPCIL will hold 51% stake and PVVNL 49%.  PVVNL announces Joint Venture with NPCIL.03.56 percent on 6th March 2009.  PVVNL’s excellence in executing power projects and its initiative in Decentralised Distributed Power Generation has been recognised and awarded at IEEMA Power Awards-2008.  PVVNL has achieved the highest ever single day generation of 655.24 MUs on 23.

ORGANIZATIONAL CHART .

PART 2 .

. It helps the organization in deciding employee’s promotion.RATIONALE OF THE STUDY Performance Appraisal is the important aspect in the organization to evaluate the employee’s performance. and satisfaction. It helps in understanding the employees work culture. involvement. incentives. and pay increase. transfer.

To carry out the study of PVNL. Review of the current appraisal system in order to 1. 4. . 2. Attain global standards 5. To identify and know the area for improvement system. Identification of the technique of performance appraisal followed in PVNL. Employee attitude towards the present appraisal system.OBJECTIVES OF THE STUDY This project is aim at studying the system of performance appraisal. we framed the following objectives 1. Enhance productivity 2. Performance appraisal is the most significant and indispensable tool for the management as it provides useful information for decision making in the area of promotions and compensation reviews. 3. To provide suggestions & recommendations from the study conducted.

but many organizations find it advantageous to establish a specialist division to provide an expert service dedicated to ensuring that the human resource function is performed efficiently. which no member of any senior management team would disagree with. It consists of all formal procedures used in the working organizations to evaluate personalities. ―People are our most valuable asset‖ is a cliché. contributions and potentials of employees. the realities for many organizations are that their people remain undervalued. in the sense of getting things done through people.PERFORMANCE APPRAISAL SYSTEM INTRODUCTION TO THE TOPIC Human Resource (or personnel) management. under trained and underutilized. . Performance Appraisal is the process of assessing the performance and progress of an employee or a group of employees on a given job and his / their potential for future development. is an essential part of every manager’s responsibility. Yet.

Recruitment Selection Induction Performance Appraisal Training & Development Recruitment The process of recruitment begins after manpower requirements are determined in terms of quality through job analysis and quantity through forecasting and planning. WHAT IS “PERFORMANCE APPRAISAL”? . Selection The selection is the process of ascertaining whether or not candidates possess the requisite qualifications. training and experience required. 2. 5. 4. policies and purposes of the organization. 3.FUNCTIONS OF HUMAN RESOURCE MANAGEMENT Following are the various functions of Human Resource Management that are essential for the effective functioning of the organization: 1. Induction a) Induction is the technique by which a new employee is rehabilitated into the changed surroundings and introduced to the practices.

Taking Corrective Action LIMITATIONS . It consists of all formal procedures used in working organizations and potential of employees. Formal procedures are used in the study. 5. Performance Appraisal is a process. PROCESS The process of performance appraisal: 1.‖ CHARACTERISTICS 1. periodic and an important rating of an employee’s excellence in matters pertaining to his present job and his potential for a better job. The main purpose of Performance Appraisal is to secure information necessary for making objective and correct decision an employee. Discussing the appraisal 6. It is the systematic examination of the strengths and weakness of an employee in terms of his job. 3. ―Performance Appraisal is the systematic. According to Flippo. It is scientific and objective study. 2. It is an ongoing and continuous process wherein the evaluations are arranged periodically according to a definite plan. Comparing the actual with the standards 5. 2. Measuring Performance 4.Performance Appraisal is defined as the process of assessing the performance and progress of an employee or a group of employees on a given job and his / their potential for future development. 4. Establishing performance standards Communicating the Standards 3.

potential. and so on. 3. The more logical task is to identify those appraisal practices that are (a) most likely to achieve a particular objective and (b) least vulnerable to the obstacles already discussed. Lack of knowledge METHODS OF PERFORMANCE APPRAISAL The foregoing list of major program pitfalls represents a formidable challenge.1. Errors in Rating Lack of reliability Negative approach Multiple objectives 5. weaknesses. taking them more or less in an order of increasing complexity. The best-known techniques will be treated most briefly. or associates carry significant weight. this technique asks the rater to write a paragraph or more covering an individual's strengths. 4. I shall briefly review each. GRAPHIC RATING SCALE . teachers. particularly those involving professional. 2. sales. ESSAY APPRAISAL In its simplest form. In most selection situations. But attempting to avoid these pitfalls by doing away with appraisals themselves is like trying to solve the problems of life by committing suicide. essay appraisals from former employers. Before relating the specific techniques to the goals of performance appraisal stated at the outset of the article. or managerial positions. even considering the available battery of appraisal techniques.

MANAGEMENT BY OBJECTIVES To avoid. above average. Typically. MBO has become something of a fad and is so familiar to most managers that I will not dwell on it here. but it does not involve the intervention of a third party. particularly when it is necessary to compare people who work for different supervisors. FIELD REVIEW The field review is one of several techniques for doing this. or appraisal forms are not particularly useful. . employees in some organizations are being asked to set .or help set . but it is more consistent and reliable. it is necessary to recognize that comparisons involve an . It may also include specific performance items like oral and written communication.This technique may not yield the depth of an essay appraisal. FORCED-CHOICE RATING Like the field review. A member of the personnel or central administrative staff meets with small groups of raters from each supervisory unit and goes over each employee's rating with them to (a) identify areas of inter-rater disagreement. average.their own performance goals. a graphic scale assesses a person on the quality and quantity of his work (is he outstanding. Within the past five or six years. Instead. (b) help the group arrive at a consensus. RANKING METHODS For comparative purposes. ratings. individual statements. or to deal with. the feeling that they are being judged by unfairly high standards. and (c) determine that each rater conceives the standards similarly. or unsatisfactory?) and on a variety of other factors that vary with the job but usually include personal traits like reliability and cooperation. this technique was developed to reduce bias and establish objective standards of comparison between individuals.

Then choose the next highest and the next lowest. we have been talking about assessing past performance. 2. Here subordinates to be rated are listed and the names of those not well enough to rank are crossed. The best approach appears to be a ranking technique involving pooled judgment. Both ranking techniques. “Alternation ranking”: Ranking of employees from best to worst on a trait or traits is another method for evaluating employees.overall subjective judgment to which a host of additional facts and impressions must somehow be added. alternating between highest and lowest until all the employees to be rated have been ranked. are among the best available for generating valid order-of-merit rankings for salary administration purposes.. Then on a form as shown below. when two or more people are asked to make independent rankings of the same work group and their lists are averaged). But with large numbers of employees it becomes extremely time consuming and cumbersome. Since it is usually easier to distinguish between the worst and the best employees than to rank them. an alternation ranking method is most popular. “Paired-comparison ranking”: This technique is probably just as accurate as alternation ranking and might be more so. particularly when combined with multiple rankings (i. There is no single form or way to do this. the employee who is highest on the characteristic being measured and the one who is the lowest are indicated. The two most effective methods are alternation ranking and paired comparison ranking. ASSESSMENT CENTERS So far.e. What about the assessment of future performance or potential? In any placement decision and even more . 1.

so in promotion decisions. Appropriate parties – peers. with little or no need for a supervisor to "play God. How can this kind of prediction be made most validly and most fairly? 360 DEGREE FEEDBACK Many firms have expanded the idea of upward feedback into what the call 360-degree feedback. Like the critical incident method. for instance – complete survey. it focuses on actual behavior and actual results. Most 360 Degree Feedback system contains several common features. whereby ratings are not given just by the next manager up in the organizational hierarchy. rather than for pay increases. or on someone's subjective opinion of their abilities. and not on their potential for success. The feedback is generally used for training and development. MBO. but also by peers and subordinates. which can be discussed objectively and constructively. subordinates and customers. Once gathered in. some prediction of future performance is necessary. . of course. the MBO method concentrates on actual outcomes. Another technique that is useful for coaching purposes is. along with the element of self appraisal." Advantages Instead of assuming traits. 360 degree feedback is also known as the multi-rater feedback. questionnaires on an individual. supervisors. If the employee meets or exceeds the set objectives. Appropriates customer ratings are also included. then he or she has demonstrated an acceptable level of job performance. Employees are judged according to real outcomes. the assessment from the various quarters are compared with one another and the results communicated to the manager concerned.

Variable objectives may cause employee confusion. Supervisors and subordinates must have very good "reality checking" skills to use MBO appraisal methods. The MBO method recognizes the fact that it is difficult to neatly dissect all the complex and varied elements that go to make up employee performance. Improves understanding and relationship between the employee and the reporting manager and also helps in resolving confusions and misunderstandings. redefining priorities and objectives. MBO advocates claim that the performance of employees cannot be broken up into so many constituent parts. and for the purposes of self-auditing and self-monitoring. Motivates the employee through achievement and feedback. . They will need these skills during the initial stage of objective setting. but to put all the parts together and the performance may be directly observed and measured. Clarifies team roles and facilitates team building. Plays an important role in Personal career and succession planning. Helps in identification of personal strengths and weaknesses. Benefits of Performance Appraisals          Measures an employee’s performance. It is also possible that fluid objectives may be distorted to disguise or justify failures in performance. Disadvantages This approach can lead to unrealistic expectations about what can and cannot be reasonably accomplished. Helps in clarifying. Facilitates assessment and agreement of training needs. defining.The guiding principle of the MBO approach is that direct results can be observed easily. Plays major role in organizational training needs assessment and analysis.

strategies.This occurs when employees are incorrectly rated near the average or middle of the scale. an attractive or popular personality might be given a high overall rating. This safe playing attitude stems from certain doubts and anxieties. values. which the raters have been assessing the rates. Rating Errors in Performance Appraisals Performance appraisals are subject to a wide variety of inaccuracies and biases referred to as 'rating errors'. Plays an important tool for communicating the organization’s philosophies. Central tendency: . indirectly increase his/her hold over him. Rating employees separately on each of .Leniency or severity on the part of the rater makes the assessment subjective. Similarly. These errors can seriously affect assessment results.A halo error takes place when one aspect of an individual's performance influences the evaluation of the entire performance of the individual. priorities.  Helps in counseling and feedback. The halo error occurs when an employee who works late constantly might be rated high on productivity and quality of output as well as on motivation. Ratings are lenient for the following reasons: a) The rater may feel that anyone under his or her jurisdiction who is rated unfavorably will reflect poorly on his or her own worthiness. etc among its employees. c) She/he may rate leniently in order to win promotions for the subordinates and therefore. aims. The attitude of the rater is to play safe. Halo error: . b) She/he may feel that a derogatory rating will be revealed to the rate to detriment the relations between the rater and the rate. Some of the most common rating errors are: Leniency or severity: . Subjective assessment defeats the very purpose of performance appraisal.

If the dimensions had been arranged in a significantly different order. sex. result in similar rating for current period although the demonstrated behavior does not deserve the rating. even though the overall performance of the sales person may not have been encouraging.This refers to allowing past performance appraisal rating to unjustifiably influence current ratings. Past ratings. the ratings might have been different. Extensively high or low score are given only to certain individuals or groups based on the rater's attitude towards them and not on actual outcomes or behaviors. Spillover effect: . good or bad. . race and friendship biases are examples of this type of error. if a salesperson captures an important contract/sale just before the completion of the appraisal.The rater's rating is heavily influenced either by behavior exhibited by the rate during his early stage of the review period (primacy) or by the outcomes. For example. stereotyping. Primacy and Regency effects: . Rater effect: -This includes favoritism. One way of guarding against such an error is to ask the rater to consider the composite performance of the rate and not to be influenced by one incident or an achievement. the timing of the incident may inflate his or her standing. good or bad. and hostility. age. Performance dimension order: . The rater rates the first dimensions accurately and then rates the second dimension to the first because of the proximity. or behavior exhibited by the rate near the end of the review period (regency).Two or more dimensions on a performance instrument follow each other and both describe or rotate to a similar quality.the performance measures and encouraging raters to guard against the halo effect are the two ways to reduce the halo effect.

independently assess employees for the said behavioral traits. a reviewer may not be a HOD) Ø Presents the proposed Performance Rating for every employee of his / her function to the Normalization committee. Ø Ø d) HR Head Ø Ø Secretary to the normalization committee Assists HOD’s / Reporting Managers in communicating the performance rating of all the employees HOD also plays the role of a normalization committee member Owns the performance rating of every employee in the department .ROLES IN THE PERFORMANCE APPRAISAL PROCESS a) Reporting Manager Ø Provide feedback to the reviewer / HOD on the employees’ behavioral traits indicated in the PMS Policy Manual Ø Ensures that employee is aware of the normalization / performance appraisal process Ø Address employee concerns / queries on performance rating. such assessments might require collecting data directly from other relevant employees c) HOD (In some cases. in consultation with the reviewer b) Reviewer (Reporting Manager’s reporting Manager) Ø Discuss with the reporting managers on the behavioral traits of all the employees for whom he / she is the reviewer Ø Where required.

e) Normalization Committee Ø Decides on the final bell curve for each function in the respective Business Unit / Circle Ø Reviews the performance ratings proposed by the HOD’s.e. They play . They are: Ø KRA’S (KEY RESULT AREAS): The performance of an employee is largely dependent on the KRA score achieved by the employee during that particular year. some concepts need to be explained which play a very important role in using the PMS successfully. and thus finalize the performance rating of each employee KEY CONCEPTS IN PMS In order to understand the Performance Management System at PVNL. it is necessary to answer a few basic questions i. Thus. How is the KRA score calculated for an employee on the basis of the targets sets and targets achieved? Ø BEHAVIORAL TRAITS: Some of the qualitative aspects of an employees’ performance combined with the general behavioral traits displayed by the employee during a year constitutes his behavior traits. to ensure an unbiased relative ranking of employees on overall performance. o o What are the guidelines for setting the KRA’s for an employee? How does an employee write down his KRA’s for a particular financial year? o o KRA’s: The Four Perspectives. An employee is assigned the rating on the basis of the intensity of the behavior displayed by him. specifically on the upward / downward shift in ratings.

e. It is very important that the HR department pays due attention to these guidelines while preparing the bell curves for various functions and the consolidated bell curve for all the functions. EC. These guidelines also help in deciding upon the promotion cases in a year.a very important role in the deciding the final performance rating for an employee as is even capable of shifting the rating one level upwards/downwards. This framework also tries to assess the performance of an employee objectively. SC. . C and PC. It also explains the criteria. Ø THE PERFORMANCE RATING PROCESS: The rating process tries to explain the four different types of rating that an employee can achieve i. Ø PROMOTION AND RATING DISRTRIBUTION GUIDELINES: The promotion and normal distribution guidelines provide the framework within which the performance appraisal process has to work. Ø PVNL 2010 LEADERSHIP COMPETENCY FRAMEWORK: This competency framework is a simple and structured way to describe the elements of behaviors required to perform a role effectively. which is considered for awarding any of these ratings to the employee.

PERFORMANCE RATING PROCESS EXCEPTIONAL CONTRIBUTOR (EC) SIGNIFICANT CONTRIBUTOR (SC) · Performs consistently and · Performs above expectations in all areas substantially above expectations in all areas · Achieves a final score greater than or equal to 115%  · Achieves final score between 100-114% Versatile in his/ her area of operation · Consistently delivers on stretch targets  · · Is proactive Spots and anticipates problems. implements solutions Develops creative solutions and require little / minimal supervision   Sets examples for others Take ownership of own development · · · Sees and exploits opportunities Delivers ahead of time Sees the wider picture-impacts across business       Coaches others Demonstrates business initiative Is self motivated Supportive team player Leads own team very effectively Demonstrate functional initiative · Focuses on what’s good for the business · · Seen as role model by others Recognized as exceptional by other functions as well · · · Motivates others to solve problems Develops others Provides open and honest feedback · .

―People are our most valuable asset‖ is a cliché.· Able to establish and lead crossfunctional teams PROJECT REPORT ON "PERFORMANCE APPRAISAL" LITERATURE REVIEW AND CONCEPT FORMULATION Human Resource (or personnel) management. 5. which no member of any senior management team would disagree with. under trained and under utilized. Yet. Recruitment Selection Induction Performance Appraisal Training & Development . in the sense of getting things done through people. the reality for many organizations are that their people remain under valued. 3. but many organizations find it advantageous to establish a specialist division to provide an expert service dedicated to ensuring that the human resource function is performed efficiently. Following are the various functions of Human Resource Management that are essential for the effective functioning of the organization: 1. is an essential part of every manager’s responsibility. 2. 4.

PROCESS OF PERFORMANCE APPRAISAL STEPS OF PERFORMANCE APPRAISAL .

COMMUNICATING THE STANDARDS Once set. . it is the responsibility of the management to communicate the standards to all the employees of the organization. The standards set should be clear. great care should be taken to describe the standards. In case the performance of the employee cannot be measured.ESTABLISHING PERFORMANCE STANDARDS The first step in the process of performance appraisal is the setting up of the standards which will be used to as the base to compare the actual performance of the employees. easily understandable and in measurable terms. This step requires setting the criteria to judge the performance of the employees as successful or unsuccessful and the degrees of their contribution to the organizational goals and objectives.

The employees should be informed and the standards should be clearly explained to the. This will help them to understand their roles and to know what exactly is expected from them. The standards should also be communicated to the appraisers or the evaluators and if required, the standards can also be modified at this stage itself according to the relevant feedback from the employees or the evaluators. MEASURING THE ACTUAL PERFORMANCE The most difficult part of the performance appraisal process is measuring the actual performance of the employees that is the work done by the employees during the specified period of time. It is a continuous process which involves monitoring the performance throughout the year. This stage requires the careful selection of the appropriate techniques of measurement, taking care that personal bias does not affect the outcome of the process and providing assistance rather than interfering in an employees work. COMPARING THE ACTUAL WITH THE DESIRED PERFORMANCE The actual performance is compared with the desired or the standard performance. The comparison tells the deviations in the performance of the employees from the standards set. The result can show the actual performance being more than the desired performance or, the actual performance being less than the desired performance depicting a negative deviation in the organizational performance. It includes recalling, evaluating and analysis of data related to the employees’ performance. DISCUSSING RESULTS The result of the appraisal is communicated and discussed with the employees on one-toone basis. The focus of this discussion is on communication and listening. The results, the problems and the possible solutions are discussed with the aim of problem solving and reaching consensus. The feedback should be given with a positive attitude as this can have an effect on the employees’ future performance. The purpose of the meeting should be to solve the problems faced and motivate the employees to perform better.

DECISION MAKING The last step of the process is to take decisions which can be taken either to improve the performance of the employees, take the required corrective actions, or the related HR decisions like rewards, promotions, demotions, transfers etc.

PURPOSE OF PERFORMANCE APPRAISAL Performance Appraisal is being practiced in 90% of the organizations worldwide. Selfappraisal and potential appraisal also form a part of the performance appraisal processes. Typically, Performance Appraisal is aimed at: employees over a given period of time.

Provide information to assist in the HR decisions like promotions, transfers etc.  Provide clarity of the expectations and responsibilities of the functions to be performed by the employees.  To judge the effectiveness of the other human resource functions of the organization such as recruitment, selection, training and development.   To reduce the grievances of the employees. Helps to strengthen the relationship and communication between superior – subordinates and management – employees.

Challenges of Performance Appraisal

In order to make a performance appraisal system effective and successful, an organization comes across various challenges and problems. The main challenges involved in the performance appraisal process are:  Determining the evaluation criteria Identification of the appraisal criteria is one of the biggest problems faced by the top management. The performance data to be considered for evaluation should be carefully selected. For the purpose of evaluation, the criteria selected should be in quantifiable or measurable terms  Create a rating instrument The purpose of the performance appraisal process is to judge the performance of the employees rather than the employee. The focus of the system should be on the development of the employees of the organization.  Lack of competence Top management should choose the raters or the evaluators carefully. They should have the required expertise and the knowledge to decide the criteria accurately. They should have the experience and the necessary training to carry out the appraisal process objectively.  Errors in rating and evaluation Many errors based on the personal bias like stereotyping, halo effect (i.e. one trait influencing the evaluator’s rating for all other traits) etc. may creep in the appraisal process. Therefore the rater should exercise objectivity and fairness in evaluating and rating the performance of the employees.  Resistance The appraisal process may face resistance from the employees and the trade unions for the fear of negative ratings. Therefore, the employees should be communicated and clearly explained the purpose as well the process of appraisal. The standards should be clearly communicated and every employee should be made aware that what exactly is expected from him/her.

5. It also helps the evaluators to give a proof and the basis of their ratings. Communication – Communication is an indispensable part of the performance appraisal process. 4. To maintain its utility. timely feedback should be provided to the employees and the manner of giving feedback should be such that it should have a motivating effect on the employees’ future performance. the evaluators should be trained to carry out the processes of appraisals without personal bias and effectively. 7. Therefore. and do not elicit much useful information. 2. The desired behavior or the expected results should be communicated to the employees as well as the evaluators. easy to understand. 3. . Feedback – The purpose of the feedback should be developmental rather than judgmental. The criteria for evaluation should be based on observable and measurable characteristics of the behavior of the employees. difficult to understand. Personal Bias – Interpersonal relationships can influence the evaluation and the decisions in the performance appraisal process. fair and objective. the appraisal system should be performance based and uniform. achievable. Evaluation technique – An appropriate evaluation technique should be selected. motivating. clear. time bound and measurable. Communication also plays an important role in the review or feedback meeting. Standards / Goals – the standards set should be clear.PRE-REQUISITES FOR EFFECTIVE & SUCCESSFUL PERFORMANCE APPRAISAL The essentials of an effective performance system are as follows: 1. Open communication system motivates the employees to actively participate in the appraisal process 6. Practical and simple format . Long and complicated formats are time consuming. Documentation – means continuous noting and documenting the performance.The appraisal format should be simple.

should be standardized as appraisal decisions affect all employees of the group. Practical Viability: The techniques should be practically viable to administer. is heavily based on the appraisal system. should possess the following essential characteristics: Reliability and validity: Appraisal system should provide consistent. For example. their ratings should agree with each other. reliable and valid information and data. If two appraisers are equally qualified and competent to appraise an employee with the help of same appraisal technique. possible to implement and economical regarding cost aspect. if appraisal is made for potential of an employee for promotion. rating etc. which can be used to defend the organization-even in legal challenges. which in turn. Standardization: Appraisal forms. to be effective. Then the technique satisfies the condition of inter-rater reliability. Appraisal system. administration of techniques. Job Relatedness: The appraisal technique should measure the performance and provide information in Job related activities/areas. it should supply the information and data relating to potentialities of the employee to take up higher responsibilities and carry on activities at higher level. procedures.MANAGERIAL ETHICS IN PERFORMANCE APPRAISAL Performance appraisal system should be effective as a number of crucial decisions are made on the basis of score or rating given by the appraiser. Appraisals must also satisfy the condition of validity be measuring what they are supposed to measure. .

if possible. To this end. Employee Access to Results: Employees should know the rules of the game. A good appraisal system provides the needed feedback on a continuing basis. Familiarity with rating errors can improve rater performance and this may inject the needed confidence in appraisers to look into performance ratings more objectively. Open Communication: Most employees want to know how well they are performing on the job. documenting appraisals. Training and Appraisers: Because appraisal is important and sometimes difficult. and conducting appraisal interviews. managers should clearly explain their performance expectations to their subordinates in advance of the appraisals period. try to improve their performance in future. it would be useful to provide training to appraisers namely insights and ideas on rating. . They should receive adequate feedback on their performance. If performance appraisals are meant for improving employees performance. Once this is known it becomes easy for employees to learn about the yardsticks and. The appraisal interviews should permit both parties to learn about the gaps and prepare themselves for future. then withholding appraisals results would not serve any purpose.Legal Sanction: It should have compliance with the legal provisions concerned of the country.

The concept of electronic performance management has been the latest trend in performance surveillance in the foreign countries where almost every job has the potentials of being monitored electronically. It follows then that formal procedures should be developed to enable employees who disagree with appraisal results which are considered to be inaccurate or unfair. they can even challenge the same through formal channels. They must have the means for pursuing their grievances and having them addressed objectively. Permitting employees to review the results of their appraisal allows them to detect any errors that may have been made. it fails. ELECTRONIC PERFORMANCE MONITORING ―Electronic performance monitoring” refers to the use of technology to monitor the employee’s performance. . If they disagree with the evaluation. But with the increasing number of MNC’s. the trend is catching up fast in India. The electronic and computerized systems are being used to monitor and evaluate the performance of the employees. Organizations across the world are incorporating the use of various advanced technologies for all functions at all levels.Employees simply could not perform better without having access to this information. Only then it would show promising results. Performance appraisal should be used primarily to develop employees as valuable resources. The key is not which forms or which method is used. When management uses it as a whip or fails to understand its limitations. Many organizations have incorporated technologies in the performance appraisal and management processes.

The system should be supported by effective two-way communication and feedback. .With the organizations using the latest technologies and soft wares. The main reasons for practicing electronic performance monitoring are      It improves productivity and the quality of work Subjective work evaluation Compliance with the organizational policies and the local laws Helps in cost-control in the company Helps in the security of the company information. to ensure the positive effects of electronic performance monitoring: The employees should be explained and communicated clearly about the system:     The employees’ suggestions should be taken in designing the system The employees should be involved in the implementation of the system The organization should not solely rely on the system for the data on employees’ performance. electronic performance monitoring supports comprehensive. Despite all its advantages. It is argued that. Using such system can have both positive and negative effects on the organizational health. the arguments given against the use of electronic performance monitoring is that such systems interfere in the privacy of the employees and some employees may take it against their dignity. and subjective assessment of the individual’s performance. qualitative.

PERFORMANCE AND ITS EFFECTIVENESS .

This is the oldest and most widely method used for performance appraisal. 6. . WEIGHTED CHECKLIST This method describe a performance appraisal method where rater familiar with the jobs being evaluated prepared a large list of descriptive statements about effective and ineffective behavior on jobs 3. PAIRED COMPARISON ANALYSIS Paired comparison analysis is a good way of weighing up the relative importance of options. 5. CRITICAL INCIDENT METHOD The critical incidents for performance appraisal is a method in which the manager writes down positive and negative performance behavior of employees throughout the performance period 2. ESSAY EVALUATION This method asked managers / supervisors to describe strengths and weaknesses of an employee’s behavior. BEHAVIORALLY ANCHORED RATING SCALES This method used to describe a performance rating that focused on specific behaviors or sets as indicators of effective or ineffective performance. A range of plausible options is listed. GRAPHIC RATING SCALES The Rating Scale is a form on which the manager simply checks off the employee’s level of performance.PERFORMANCE APPRAISAL METHODS (Tools of) Performance appraisal methods include 11 methods / types as follows: 1. Each option is compared against each of the other options. The results are tallied and the option with the highest score is the preferred option. Essay evaluation is a non-quantitative technique This method usually use with the graphic rating scale method. 4.

and reward according to the result. 360 DEGREE PERFORMANCE APPRAISAL 360 Degree Feedback is a system or process in which employees receive confidential. We can use free sample / example job specifications as follows: . 70 or 80 percent in the middle.It is a combination of the rating scale and critical incident techniques of employee performance evaluation. rather than comparing each one to a standard measurement. This information will help us develop effective Performance appraisal. BEHAVIORAL OBSERVATION SCALES Behavioral Observation Scales is frequency rating of critical incidents that worker has performed. periodically evaluate the performance. 10. MBO focuses attention on what must be accomplished (goals) rather than how it is to be accomplished (methods) 9. anonymous feedback from the people who work around them. and 10 percent in the bottom. human resource department.FORCED RANKING (FORCED DISTRIBUTION) Forced ranking is a method of performance appraisal to rank employee but in order of forced distribution. SAMPLE FORMS OF PERFORMANCE APPRAISAL SYSTEM Samples / examples of performance appraisal are popular in staff / employee appraisal with organizations. 8. the distribution requested with 10 or 20 percent in the top category. 11. 7. Manager will compare an employee to another employee. PERFORMANCE RANKING METHOD Ranking is a performance appraisal method that is used to evaluate employee performance from best to worst. managers. MANAGEMENT BY OBJECTIVES (MBO) MBO is a process in which managers / employees set objectives for the employee. For example.

4. 8. Weighted checklist form This form is based on weighted checklist method of performance appraisal. 3.1. 5. 6. 2. 7. . Manager performance appraisal form This form is a performance appraisal sample used for manager position. Essay evaluation form This form is based on essay evaluation method of performance appraisal. Employee self appraisal form This form is a performance appraisal sample based on appraisal self by employee. Performance appraisal form This is general form for performance appraisal. Forced Choice form This form is a performance appraisal sample based on forced choice method of performance appraisal. Rating scale form This form is a performance appraisal sample based on rating scales method of performance appraisal. Employee performance appraisal form This form is a performance appraisal sample used for staff position.

Outstanding: Performing at a level above and beyond the duties of the current position’s requirements. Unsatisfactory: Major improvements needed. Job knowledge • Application of appropriate level of technical and procedural knowledge in specific field • Degree of technical competence • Understanding of job procedures. • Use of time and volume of work accomplished. facts and information related to assignments. • Shares information and resources with others • Follows instructions of supervisor and respond to requests from others in the team in a helpful manner. 3. 1. Needs Improvement: Less than Satisfactory could be doing better. Meets Expectations: Performing duties as directed with minimal Supervision. 2. effectiveness. thoroughness. Teamwork: • Establish and maintain effective working relationship with others. • Pressure. methods. ability to meet standards of quality. • Contributing work and effort to group performance to meet agreed upon objectives and achieve team success 4. Quality of work • Consider accuracy. consults the appropriate staff 5. II/ CONTENTS OF PERFORMANCE APPRAISAL FORM: 1. Quantity of work • Competence. thoroughness. 3. . PERFORMANCE APPRAISAL FORMS I/ RATING SCALES OF PERFORMANCE APPRAISAL FORM: We can use scales as follows for this performance appraisal form. • Neatness and accuracy. • Work output matches the expectations established. Excellent: Performing all duties in a cost-effective manner with positive.1. and efficiency of work regardless of volume. • Perform duties with minimal supervision but seek guidance where and when appropriate to the job. 2. measurable results. 5. 4. Initiative • Consider the extent to which the employee sets own constructive work practice and recommends and creates own procedures.

7. 6. • Arranging work schedules and prioritizing work to meet deadlines. • Knows appropriate way of communicating with immediate superiors and the management • Demonstrates respect for all individuals in all forms of communication regardless of their background or culture. establishing priorities. developing plans. • Maintains confidentiality as appropriate. 9. designs and/or applications of existing designs or procedures. • Setting objectives. Staff development • The extent to which the individual provides guidance and opportunities to his or her staff for their development and advancement in the university. and tactful in dealing with supervisors. . Interpersonal relations • Consider the extent to which the employee is cooperative. Dependability Performance appraisal of dependability include elements as: • Consider the extent to which the employee completes assignments on time and carries out instructions. 11. • Know when to ask for clarification before proceeding on a work project. Problem analysis and decision making • Anticipating problems and facilitate problem resolution. selfreliant. • Accepts additional challenges and responsibilities and willingly assist others. • Presents information in a clear and concise manner. procedures. 8. concepts. faculty. Planning and organizing : • Adapting to changes and using resources effectively. 10. peers. • Willingness to make necessary and immediate decisions given incomplete information. subordinates. • Recognizing when a decision is necessary. considerate. develop and implement new methods. asking for input. 12. • Understanding practical and workable solutions. Communications abilities Performance appraisal of communications includes elements as: • Ability to listen and understand information. students and others. solutions. • The following are also to be completed for supervisory personnel and members of the administrative staff.• Self-starter. Health and safety compliance • The degree to which he or she complies with or over sees the compliance with university safety rules. • Completes assignment on time. making decisions and providing information and feedback in a timely manner.

• Starts work at appropriate time; • Respects time allowed for breaks and lunch; • Follows policies for requesting and reporting time off; • Helps ensure work duties are covered when absent; • Employee’s presence can be relied upon for planning purposes. • Attendance and punctuality meets supervisor’s requirements. 2. MANAGER PERFORMANCE APPRAISAL FORM

I / MANAGER INFORMATION: • Name • Date • Job Title • Date of Last Review • Department: • Appraiser Name II/ PERFORMANCE ACHIEVEMENT • You should design table with columns as No, agreed objectives, weight, result, total score. • This table is used for objective performance. III/ COMPETENCIES 1. Identify competencies needed for job, for example: • Technical skills • Financial skills • Decision making ability • Analytical ability / problem solving • Initiative/perseverance/enthusiasm • Flexibility • Written communication skills • Oral communication skills • Customer focus • Teamwork • Organizational ability. • Negotiating skills 2. Rating scales can be: • 1 = Exceptional • 2 – Strong • 3 = Fully Competent • 4 = Continued Development • 5 = Poor • N = Not Applicable

IV/ MANAGEMENT SKILLS 1. Staff Development/ Mentoring 2. Influencing Skills 3. Analytical/Conceptual Thinking 4. Ability to Lead a Team 5. Using Business Acumen 6. Coaching skill etc V/ DISCUSSIONS 1. Strengths (examples of where individual has excelled). 2. Developmental needs (areas that need strengthening, additional experience/exposure). VI/ OVERALL RATING 1. Rating scales • Exceptional • Strong • Fully Competent • Continued Development • Poor • New to Position 2. Definition of each element: • Exceptional (clearly outstanding performance). Performance falls within top 5 – 10 % of employees at his/her level. • Strong (excellent performance). Performance falls within top 15% of the employees at his/her level. • Fully Competent (solid performance). Consistently meets expectations. Two-thirds of your employees should fall within this category. • Continued Development. Needs development in current position. Overall performance is somewhat lower than expected for the current position. • Poor (unsatisfactory performance). Performance is clearly below what is expected at current position/level. • New to Position. Employee has been in position for less than six (6) months. VII/ MANAGER COMMENTS VIII/ SIGNATURES: The employee’s signature below indicates that a performance development discussion was conducted on the specified date, but does not necessarily indicate agreement with the content of the session. Manager / Supervisor Signature Supervisor Signature Date. Distribution: (1) Copy to HR departmental Personnel File (2) Copy to line manager. (3) Copy to Manager / Supervisor.

3. EMPLOYEE PERFORMANCE APPRAISAL FORM

I / EMPLOYEE INFORMATION: • Name • Date • Job Title • Date of Last Review • Department: • Appraiser Name II/ PERFORMANCE ACHIEVEMENT • You should design table with columns as No, agreed objectives, weight, result, total score. • This table is used for objective performance III/ COMPETENCIES 1. Identify competencies needed for job, for example: • Written communication skills • Oral communication skills • Customer focus • Teamwork • Organizational ability. • Negotiating skills • Technical skills • Financial skills • Decision making ability • Analytical ability / problem solving • Initiative/perseverance/enthusiasm • Flexibility

2. Rating scales can be: 1 = Exceptional 2 – Strong 3 = Fully Competent 4 = Continued Development 5 = Poor N = Not Applicable IV/ DISCUSSIONS 1. Strengths (examples of where individual has excelled). 2. Developmental needs (areas that need strengthening, additional experience/exposure).

Two-thirds of your employees should fall within this category. but does not necessarily indicate agreement with the content of the session. Overall performance is somewhat lower than expected for the current position. • Poor (unsatisfactory performance). • New to Position. Employee Signature Supervisor Signature Date Distribution: (1) Copy to HR departmental Personnel File (2) Copy to line manager. Performance falls within top 5 – 10 % of employees at his/her level. Employee has been in position for less than six (6) months. Performance falls within top 15% of the employees at his/her level. • Continued Development. Rating scales • Exceptional • Strong • Fully Competent • Continued Development • Poor • New to Position 2. • Fully Competent (solid performance). Performance is clearly below what is expected at current position/level. VI/ EMPLOYEE COMMENTS ———————– ———————– VII/ SIGNATURES: The employee’s signature below indicates that a performance development discussion was conducted on the specified date.V/ OVERALL RATING 1. • Strong (excellent performance). Definition of each element: • Exceptional (clearly outstanding performance). Consistently meets expectations. (3) Copy to Employee. Needs development in current position. .

policies. • The employee’s relations with co-workers and superiors. • A busy rater may write the essay hurriedly without properly assessing the actual performance of the worker. • The attitudes and perceptions of the employee. Disadvantages of essay evaluation • Manager / supervisor may write a biased essay. HR department can design questions as follows and send to line manager for appraising. Jobholder’s comments ——– . 2. 3. Definition of essay evaluation • This method asked managers / supervisors to describe strengths and weaknesses of an employee’s behavior. What are additional comments related to the conditions and circumstances of effective/ineffective behavior? ——– ——– 6.4. • Apart from that. Others may be superficial in explanation and use flowery language which may not reflect the actual performance of the employee. 1. Please give examples of the employee’s effective behavior ——– ——– 3. Input of information sources • Job knowledge and potential of the employee. What steps have been taken (or will be taken) to modify ineffective behavior? ——– ——– 4. this becomes uneconomical from the view point of the firm. • Employee’s understanding of the company’s programs. • Some evaluators may be poor in writing essays on employee performance. because the time of rater is costly. Does the jobholder’s job description need revision? And how to? ——– ——– 5. rater takes a long time. objectives. in general. • The employee’s general planning. ESSAY EVALUATION FORM 1. Essay evaluation is a non-quantitative technique • This method usually use with the graphic rating scale method. etc.. Please give examples of the employee’s ineffective behavior ——– ——– 2. organizing and controlling ability.

70 or 80 percent in the middle. Design question Forced Choice Requirements of questions: both statements in the pair may be positive or negative.S. They may be given a probationary period to improve their performance. The top-ranked employees are considered ―high-potential‖ employees and are often targeted for a more rapid career and leadership development programs. and 10 percent in the bottom. • They force reluctant managers to make difficult decisions and identify the most and least talented members of the work group. In contrast. • They discourage collaboration and teamwork. Conoco. . Enron and a host of other U. Cisco Systems. For example. Ford Motor. • The rater is required to choose the most descriptive statement in each pair of statements. the distribution requested with 10 or 20 percent in the top category. FORCED RANKING (FORCED DISTRIBUTION) 1. Sun Microsystems. Application of Forced Ranking GE. Disadvantages • They increase unhealthy cut-throat competitiveness. EDS. corporations have adopted similar policies of this method 3. • Quality of work: ____quality is good____ • Absent too often: ____works hard____ • Learns quickly: ____work is reliable____ • Performance is exemplary: ____usually tardy____ 2. Advantages and disadvantages of forced Ranking Advantages: • They create and sustain a high performance culture in which the workforce continuously improves. Definition of forced ranking (forced distribution) Forced ranking is a method of performance appraisal to rank employee but in order of forced distribution. those ranked at the bottom are denied bonuses and pay increases. FORCED CHOICE FORM 1. 2. • They harm morale. • They are legally suspect giving rise to age discrimination cases. Deployment of Forced Choice form • This form is conducted by line manager.——– 5.

• It becomes difficult for the manager to assemble. Sample of weighted checklist • Does he give respect to his superiors? Yes/No • Does he follow instructions properly? Yes/No • Does he make mistakes frequently? Yes/No The value of each question may be weighted equally or certain questions may be weighted more heavily than others. Using benchmarking to identify weight of each question. 3. Weight. . WEIGHTED CHECKLIST FORM 1. Definition of weighted checklist This method describes a performance appraisal method where rater familiar with the jobs being evaluated prepared a large list of descriptive statements about effective and ineffective behavior on jobs. Process of weighted checklist • HR department and Managers / Supervisors will set up checklist for each position. he checks the item. 4. Question. • This method also is expensive and time consuming. Identify question: Based on elements of job performance. • Then. you can design questions as follows (for example) • Employee cooperatively assists coworkers who need help • Employee plans actions before beginning work • Employee works overtime when asked to • Employee keeps work station well organized • Employee listens to advice but seldom follows it 2. Design table of checklist • You should design a table with 5 columns: No. he leaves the item blank. • Identify result by summarizing all points at weight column. • If the rater believes strongly that the employee possesses a particular listed trait. Advantages and disadvantages of weighted checklist • This method helps the manager in evaluation of the performance of the employee. WEIGHTED CHECKLIST FORM 1. analyze and weigh a number of statements about the employee’s characteristics. • The rater may be biased in distinguishing the positive and negative questions. 2. contributions and behaviors.6. Yes / No. He may assign biased weights to the questions. • Send this form to employees for answer (stick yes or no). otherwise.

RATING SCALE FORM 1. Exhibits enthusiasm and cooperativeness on the job • Cooperation. relief.7. • They also allow for quantitative comparison. thorough. Neatness. Conscientious. • Dependability. 3. • Initiative. etc. • This is the oldest and most widely method used for performance appraisal. 2. Rating scales Rating scales can include 5 elements as follows: • Unsatisfactory • Fair • Satisfactory • Good • Outstanding 4. accurate. Definition of the rating scales • The Rating Scale is a form on which the manager simply checks off the employee’s level of performance. 5. Willingness and ability to work with others to produce desired goals. Volume of work under normal working conditions • Quality of work. . • Judgment • Attitude. with respect to attendance. • Different supervisors will use the same graphic scales in slightly different ways. Disadvantages of the rating scales • More validity comparing workers ratings from a single supervisor than comparing two workers who were rated by different supervisors. lunch breaks. Advantages of the rating scales • Graphic rating scales are less time consuming to develop. reliable. thoroughness and accuracy of work Knowledge of job. • The scales may specify five points. so a factor such as job knowledge might be rated 1 (poorly informed about work duties) to 5 (has complete mastery of all phases of the job). Content of appraisal • Quantity of work.

please specify. What skills do you have that you feel could be used more effectively? . 2. SELF APPRAISAL FORM EMPLOYEE SELF APPRAISAL FORM Review period: from ___to___ Name: Department: Position: Job code: Based on your job description and current work assignments. positive or negative. please answer questions as follows: 1. in which specific work related behaviors are assessed. 3. 2. you can ask some questions.• One way to get around the ambiguity inherent in graphic rating scales is to use behavior based scales. Have you successfully performed any new tasks or additional duties outside the scope of your regular responsibilities? If so. Rating scales: Rating scales of each element above can include scales as follows: • Excellent – 5 points • Good – 4 points • Acceptable – 3 points • Fair – 2 points • Poor – 1 point 8. 1. Please list your most significant accomplishments or contributions during this appraisal period. you feel may have helped or hindered in meeting your formal or informal goals or objectives. Elements of the rating scale Elements for performance appraisal can include as follows. Describe any factors. • Quality of work • Quantity of work • Dependability • Initiative • Overall Output • Attendance • Attitude • Cooperation For each element. 4.

Employee Signature: Date: SELF EVALUATION FORM Employee name: Department: Position: Date: Period of appraisal: 1. Which job responsibilities do you view as most important? Why? 3. What could your supervisor/manager do to support you in doing your job? 11. how did they affect your work. Please attach additional sheets if necessary. 7. very competent. Since the last review period. In your opinion. other. please specify. Have any new responsibilities been added or removed from your job this year? If so. 8. What would help you to do your job better and provide greater job satisfaction? 9. Describe the areas you feel require improvement in terms of your professional development. Please evaluate yourself on the following factors: outstanding. 8. better exposure to challenging projects. what? 4. peer training. List 2-4 of your career goals for the coming year and indicate how you plan to accomplish them. how does the work you perform align with or support the objectives of the University Mission Statement? 7. What are your main job responsibilities? 2.5. needs improvement • Interpersonal Skills • Time Management Skills • Teamwork • Innovation/Creativity Please use this space to provide any additional comments. What are your goals for next year and what action will you take to accomplish these goals? 10. How do these achievements align with the goals/objectives outlined in your last review? 6. Please describe. satisfactory. List your most significant accomplishments or contributions during the past year. 6. What additional support from your organization would help you do your job more effectively? . To which of the following factors would you attribute your professional development since last year: offsite seminars/classes. and what were the circumstances? 5. Have there been any special circumstances that have helped or hindered you in doing your job this year? If yes. onsite training. List the steps you plan to take and/or the resources you need to accomplish this. have you performed any new tasks or additional duties outside the scope of your regular responsibilities? If so. on-the-job experience.

ADVANTAGES OF SELF APPRAISAL • By having employees do some sort of self evaluation before the actual review meeting. What goals have you set for yourself during the next year? What types of projects would you like to be involved in? 4. specific training classes. • If done properly and tactfully. • Whey self appraisal is an accepted and integrated part of the performance management process. • The developmental focus of self-assessment is a key factor. what were the expectations and outcomes? 2.. For each of the major responsibilities. Of those. What do you think has been your most important contribution to the department and/or the organization? What are you most proud of? 1. . DEFINITION OF SELF APPRAISAL Self-appraisal is a method of performance appraisal that is done by employee (appraisee). including the type of assignment you would like next. help convey the message that the process of performance management and appraisal is a team effort. etc. Describe any changes you suggested and/or implemented this year that led to improvement in your area (e. What recommendations do you have that would make this a better place to work? 13.g. cost savings. which did you accomplish? 11. Describe your job description. What action(s) have you taken this year to gain a better understanding of the organization. but were unable to? Why? 3.g. 2. and not something the manager does to the employee. What kind of support and/or guidance would you like to see from your supervisor? 6. Describe any projects you have been responsible for which are not in your job description. your unit/division/department.)? 5. • Self-ratings are particularly useful if the entire cycle of performance management involves the employee in a self-assessment. including around the actual review meetings. it encourages employees to self evaluate throughout the year. seminars. Describe goals and/or developmental steps you set out to accomplish during this past year. What results have you achieved? 7.12. What contributions did you make to the team? 10.. Give examples of departmental collaborative efforts that you were involved in this year. SELF-ASSESSMENT QUESTIONS 1. What would you have liked to have done this year. efficiency). or your own job? 9. • Approximately half of the Federal employees in a large survey felt that self-ratings would contribute ―to a great or very great extent‖ to fair. Indicate your career interests. encouraging employees to self evaluation or self appraise at any time during the year. 8. the review meetings can be shorter. quality of work life. What types of developmental activities would you like to take advantage of (e.

The attitude of the rater is to play safe. This safe playing attitude stems from certain doubts and anxieties. b) c) Central tendency: . Subjective assessment defeats the very purpose of performance appraisal. including the self assessments. which the raters have been assessing the rates. She/he may feel that a derogatory rating will be revealed to the rate to detriment the relations between the rater and the rate. RATING ERRORS IN PERFORMANCE APPRAISALS Performance appraisals are subject to a wide variety of inaccuracies and biases referred to as 'rating errors'. help to ―round out‖ the information for the summary rating. .• Self-appraisals are particularly valuable in situations where the supervisor cannot readily observe the work behaviors and task outcomes. particularly supervisor ratings.This occurs when employees are incorrectly rated near the average or middle of the scale. Some of the most common rating errors are: - Leniency or severity: . The self-ratings tend to be consistently higher. • Sometimes self-ratings can be lower than others’. 3. In such situations. employees tend to be self-demeaning and may feel intimidated and ―put on the spot. This discrepancy can lead to defensiveness and alienation if supervisors do not use good feedback skills.‖ • Self-ratings should focus on the appraisal of performance elements. She/he may rate leniently in order to win promotions for the subordinates and therefore. Ratings are lenient for the following reasons: a) The rater may feel that anyone under his or her jurisdiction who is rated unfavorably will reflect poorly on his or her own worthiness.Leniency or severity on the part of the rater makes the assessment subjective. These errors can seriously affect assessment results. A range of rating sources. not on the summary level determination. DISADVANTAGES OF SELF APPRAISAL • Research shows low correlations between self-ratings and all other sources of ratings. indirectly increase his/her hold over him.

Halo error: . Similarly. sex. The halo error occurs when an employee who works late constantly might be rated high on productivity and quality of output as well ax on motivation. an attractive or popular personality might be given a high overall rating.This refers lo allowing past performance appraisal rating lo unjustifiably influence current ratings. race and friendship biases are examples of this type of error. Past ratings. . if a salesperson captures an important contract/sale just before the completion of the appraisal. good or bad. or behavior exhibited by the rate near the end of the review period (regency). One way of guarding against such an error is to ask the rater to consider the composite performance of the rate and not to be influenced by one incident or an achievement. Extensively high or low score are given only to certain individuals or groups based on the rater's attitude towards them and not on actual outcomes or behaviors. good or bad. and hostility.A halo error takes place when one aspect of an individual's performance influences the evaluation of the entire performance of the individual. Rater effect: -This includes favoritism.The rater's rating is heavily influenced either by behavior exhibited by the rate during his early stage of the review period (primacy) or by the outcomes. For example. even though the overall performance of the sales person may not have been encouraging. Spillover effect: . Rating employees separately on each of the performance measures and encouraging raters to guard against the halo effect are the two ways to reduce the halo effect. Primacy and Regency effects: .Two or more dimensions on a performance instrument follow each other and both describe or rotate to a similar quality. age. result in similar rating for current period although the demonstrated behavior docs not deserve the rating. The rater rates the first dimensions accurately and then rates the second dimension to the first because of the proximity. If the dimensions had been arranged in a significantly different order. Performance dimension order: . stereotyping. the ratings might have been different. the timing of the incident may inflate his or her standing.

* Absence of inter-rater reliability. The other problems of performance appraisal reported by various studies are: * Relationship between appraisal rates and performances after promotions was not significant. . he may rate them at the lower end.  Influence of external environmental factors and uncontrollable internal factors. * Superiors lack that tact of offering the suggestions constructively to subordinates.  Less reliability and validity of the performance appraisal techniques.Personal Prejudice: If the rater dislikes any employee or any group. * Some superiors completed appraisal reports within a few minutes. * The situation was unpleasant in feedback interview.  Feedback and post appraisal interview may have a setback on production.  Some ratings particularly about the potential appraisal are purely based on guess work. * Supervisors were often confused due to too many objectives of performance appraisal. Other factors that are considered as problems are  Failure of the superiors in conducting performance appraisal and post performance appraisal interview.  Negative ratings affect interpersonal relations and industrial relations system. which may distort the rating purpose and affect the career of these employees.  Most part of the appraisal is based on subjectivity.  Management emphasizes on punishment rather than development of an employee in performance appraisal.

Infect a well planned and well balanced research design guards against collection of irrelevant data and achieves the result in the best possible way.RESEARCH METHODOLOGY The quality and reliability of research study is dependent on the information collected in a scientific and methodological manner. sample should be adequately chosen so to make it representative and reliable. Scientific planning of designing of research method is a blue print for any research study. Therefore. proper time and attention should be given in designing the plan of research. when compared with others. It is overall plan for the collection and analysis of data in the research project. implementation and control of research project. Thus it is an organized. RESEARCH DESIGN : Research design is the first and foremost step in methodology adopted and undertaking research study. systematic approach to be the formulation. Efficient design is that which ensure that the relevant data are collected accurately. SAMPLING PLAN: . He should arrive at the final choice by seeing that the methodology chosen for project is indeed the best one. The researcher has to think about what procedure and techniques should be adopted in the study. SAMPLE DESIGN :The universe of study being large. proper design tells him how he should go. Selection of methodology for a particular project is made easy by sorting out a number of alternative approaches. While proper definition of problem tells the researcher where he has to go. researcher has to resort to sampling method of data collection. On the basis of a section of the universe selected in a prescribed manner one is able to deduce for the universe. For the sample results to be applicable on the universe. each of them having its own advantage and disadvantages.

they are already exit some where. A number of methods are at the disposal of the researcher of which one has to select the most appropriate one for visualizing the research objective.e. For the purpose of our study we collected both the data.Sample Size = 50 Employees Sample Area = PVNL Meerut Duration = Two (2) Months. a) Primary Data: Data which are collected fresh and for the first time and thus happens to be original in character.. the adequacy of appropriate data in turn depends upon proper method of data collection. Primary data are gathered for specific purpose. b) Secondary data: Data that collected from primary data i. Thus he has to see that the method adopted is compatible with the resources and research study. DATA COLLECTION: Data Sources: (i) Secondary Data through Internet (ii) Primary Data through Questionnaire (iii) Contact Method (iv) Personal Interaction . While the quality of research findings depends on data. Ø DATA COLLECTION METHOD: Data are the bricks with which the researcher has to make a house.

the data was collected which is analyzed as follows: - .DATA PRESENTATION AND ANALYSIS: 1. 2. Bar graphs Pie Diagrams Data Analysis By having discussion with senior production officers of PVNL and filling of the questionnaire.

View Yes No Percentage 85% 15% 90 80 70 60 50 40 30 20 10 0 quaterly half-yearly monthly annually Interpretation After analyzing the data. Type of performance appraisal preferred Table-1 S. . 2.1. the results shows that 85% of the senior production officers prefer quarterly performance appraisal and 15% prefer half-yearly performance appraisal. No 1.

2. View Yes No Percentage 85% 15% Satisfied with Subordinate performance 2 15% 1 85% Interpretation After analyzing the data. .Senior’s satisfied by subordinate’s performance Table-2 S. No 1. This analysis shows there is lack of appraisal by the immediate seniors.2. the results shows that 85% of the senior production officers feel that their seniors are satisfied with their performance and 15% can’t say.

This implies that satisfaction level has to be increased among senior production Officers. Satisfied with their own Performance Table-3 S. No 1. View Yes No Percentage 85% 15% Satisfied with their own performance 2 15% 1 85% Interpretation After analyzing the data. the results shows that 85% of the senior production officers are satisfied with their own performance and 15% are not satisfied with their own performance. 2.3. .

. View Yes No Percentage 100% 0% Improves Performance 1. the results shows that 100% of the senior production officers feels that performance appraisal do helps in performing better.4. 2. Through this we come to know that process of performance appraisal is coming out to be positive and it should be continued. 100 100 80 60 40 20 0 1 2 2. No 1. 0 Interpretation After analyzing the data. Performance appraisal improves performance Table-4 S.

View Yes No Percentage 100% 0% Improves Performance 1. 2. Information is submitted timely by the senior production officers to their seniors Table-5 S. 100 100 80 60 40 20 0 1 2. 0 2 Improves Performance Interpretation After analyzing the data. the result shows that 100% of the senior production officers submit all the information timely to their seniors.This shows that all the senior production officers submit all the information timely to the seniors. . No 1.5.

the results shows that 67% of the senior production officers feel that they are provided with a chance to defend them against adverse entries in their appraisal whereas 33% denies it. No 1. View Yes No Percentage 67% 33% Defend against adverse entries Interpretation After analyzing the data. 2. .6. Adequate and fair chance provided to defend against adverse entries in your appraisal Table-6 S.This shows that there is lack of chances provided to defend against adverse entries in appraisal.

. which are required to be rectified to improve performance.Reason for bad performance Table-7 Personal Officials Others No bad performance 16% 16% 16% 52% In percentage 60% 50% 40% 30% In percentage 20% 10% 0% Personal Officials Others No bad performance Interpretation After analyzing the data. 16% of senior production officer’s due to other reasons and no bad performance from the rest of the 52% of senior production officers. This shows that there are some reasons.16% of senior production officers due to official reasons.7. the results shows that 16% of senior production officers performed bad due to personal reasons.

2. .8. Awareness of appraisal system. the results shows that 67% of the senior production officers are fully aware of the appraisal system and rest 33% are unaware of this system. Table-8 S. View Yes No Percentage 67% 13% Awareness of appraisal system Interpretation After analyzing the data. No 1.This shows that awareness about the performance appraisal system is to be increased.

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I have got the following :- 1. is done annually.) There is lack of satisfaction level among the senior production level officers regarding to their own work as they have monotony at their work. Accordingly then incentives and promotions are granted. 2. there is lack of proper knowledge among senior production officers about the procedure followed in Performance Appraisal.) In PVNL Meerut. And then after according to their selfobservation and through the appraisal form filled by the staff members rating is given to the members. 6. a SELF-APPRAISAL form is given to the staff members and they fill it up.) In PVNL Meerut. 5. 3.) All senior production officers agree that performance appraisal system helps them to perform better. 4. at the majority senior staff members submit all the information timely to their superiors. 7.) For appraisal in PVNL Meerut.FINDINGS Based on my analysis of data collected during my study in PVNL India Meerut.) There is lack of fair chances provided to defend yourself against adverse entries in your appraisal. .) Performance appraisal in PVNL Meerut .

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. and the results obtained. 4) Staff members should be provided with the well-defined targets. 2) Senior-Subordinate meetings should be made very regular so that every can keep his point in front without any hesitation and that will add to their innovation and creation. 3) The process of performance appraisal should be made goal-oriented. following are the recommendations to improve the procedure of performance appraisal followed in PVNL Meerut: 1) Staff members should be provided with the training about performance appraisal and they should be made very well aware about the thing that this exercise can help them in developing their performance and attitude which will help them on their own part at majority and company at minority.LIMITATIONS According to research undertaken by me.

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head and the manager of the company is around him who rate the performance of the employee based upon certain predefined criteria’s.Recommendations As we know ―Performance appraisal is a systematic and objective way of judging the relative worth or ability of an employee in performing the task. supervisor.The system is like: 360-degree Performance Appraisal Head Supervisors Person whose performance to rate Peers Manager .”  The company should go for the 360degree performance appraisal. Performance appraisal helps to identify those who are performing their assigned tasks and those who are not and the reasons for such performance. Under this method the person whose performance is to be judged is in between and his peers.

appraise performance by recognizing there work in meetings etc. which motivate them to work to their fullest capacity and to motivate them to work more and show good and better results. Above are few recommendations. . which can be looked over while doing the performance appraisal of the company.  For the top management of the company it should offer them holiday package. provide them the medical facilities etc because they want financial help from the company to insure their proper living.  For the lower group the company can increase their wages. The company should appraise the performance of the workers by giving them some incentives. this will help to raise their moral and they can work better.  The performance.  The should keep changing the raters for the performance appraisal system from time to time so that they don’t become bias at anytime for any employee. give them pension schemes. clear and concise.  The system should be cost effective and it should suit the budget of the company.  The criteria decided upon which the performance has to be rated should not be fixed it should be changed from time to time. should be verifiable and measurable afterwards also. They don’t want financial help as they earn enough to maintain their status. They want their work recognition. which is been measured.  The method of the company should be changed periodically so that the employees have mo chance to complain for the method.  The standards of the rating should be very specific.  There should be the feeling of teamwork in the organization.

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b) Quantity of work. After that the immediate boss who has been observing the immediate subordinate throughout the year rates him according to the self appraisal form filled and personal observation under following factorsa) Quality of work. i) Discipline. h) Reactions to criticism. d) Dependability. c) Job knowledge. j) Customer relations. g) Attendance. a self-appraisal form has been given and senior production officers have to fill that form which throws light on their basic achievements during the past accounting year. filling the questionnaire and analyzing the data. I have derived the following conclusion – In PVNL Meerut performance appraisal is conducted annually. f) Ability to learn. k) Subordinate development. . e) Innovation and creativity.CONCLUSION After collecting the information from the senior production officers with the help of personal discussion. Under this process.

Rating given to the senior production officers is done confidentially and whatever information is been filled in the self-appraisal form is not cross-questioned. and they need not be directly attached to promotion opportunities. Performance appraisals should be conducted on a regular basis. Also I concluded that PVNL considers performance appraisal important because of the following reasons Performance appraisals provide employees and managers with opportunities to discuss areas in which employees excel and those in which employees need improvement.The rating given is confidential and out of the knowledge of their subordinates. Accordingly. The sole objective for taking part in performance appraisal of Senior production officers in PVNL Meerutis to be awarded with promotions and incentives but the basic reason why performance appraisal is conducted is to develop the performance and attitude. . Senior production officers of PVNL Meerut follow the procedure of performance appraisal given by the senior managers because they have monotony in their work and they have no time for any innovation or creativity. promotions and incentives are granted to the deserving ones.

a supervisor and an employee discuss the employee's strengths and weaknesses. This can include identifying skills that must be acquired. Managers should schedule this communication on a regular basis. Performance appraisals allow employees and supervisors to discuss goals that must be met to advance within the company. Employee Accountability 4. they realize that they are accountable for their job performance. When employees know there will be regularly scheduled evaluations.Personal Attention 1. Career Path 3. During a performance appraisal review. areas in which one must improve. and educational courses that must be completed. Employees need to know when their job duties are being fulfilled and when there are issues with their work performance. This gives the employee individual face time with the supervisor and a chance to address personal concerns. Feedback 2. .

. employee appraisals provide the opportunity for managers to explain organizational goals and the ways in which employees can participate in the achievement of those goals.Communicate Divisional and Company Goals 5. Besides communicating employees' individual goals.

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ANNEXURE STUDY OF PERFORMANCE APPRAISAL SYSTEM 1. What type of performance appraisal you prefer? Annually Monthly Quarterly Half yearly 2. Does performance Appraisal help you in performing better? Yes No 6. If no do you think you can perform better? Yes No 5. Do you get adequate and fair to defend your self against adverse entries in your appraisal? . Are you satisfied with your performance? Yes No 4. Do you submit information timely to your superiors? Yes No 7. Are your seniors satisfied with your performance? Yes No 3.

What actually comes as the reason for your bad performance? (if any) Personal Official Other 9. Any suggestion to alter existing Performance Appraisal system of your company? ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ______________ BIBLIOGRAPHY . Are you fully aware of the appraisal system followed in your company? Yes No 10.Yes No 8.

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V.com www.org Books Human resources development -T. RAO . Pnvl.P.BIBLIOGRAPHY MAGAZINE Business Today Advertising & Management Free Press journal NEWSPAPERS Economic Times Hindustan Times Financial express Business standard WEBSITE www.N.S.google. CHABBRA Human resources development .

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