PROJECT REPORT ON REPORT ON "TO ANALYZE THE PRESENT PERFORMANCE APPRAISAL SYSTEM OF NTPC LTD."
Project report submitted in partial fulfilment of the requirement of South Asia University for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION 2012
NAME ENROLLMENT NO
SOUTH ASIA UNIVERSITY LONDON
This is to certify that project entitled “PROJECT REPORT ON"TO ANALYZE THE PRESENT PERFORMANCE APPRAISAL SYSTEM OF NTPC LTD." “ is submitted by Tamilarasan.A (ENROLMENT NUMBER - SAA04M147ELB1HA3), GEMS B SCHOOL, Bangalore. in partial fulfillment of the seventh trimester requirement in for the award of the degree master of business administration and is certified to be an original and bonafide work.
It gives me great pleasure to bring out this project study entitled- “ To analyze the present performance appraisal system of National Thermal Power Corporation Ltd.”. It is interesting and at the same time, challenging also to analyze the performance appraisal system of such a large organization. This project study contains necessary information related to the company viz. - its journey from the year it was founded to the present year, total capacity, product profile, market share, sales figure, functions of various departments etc. It covers the opinions and expectations of the employees in the form of findings. Recommendations to improve the appraisal system have also been included. The procedure adopted to conduct the survey and collection of information is also described in the study. It is hoped that the suggestions recommended in the study would be welcomed and implemented by the management of the organization after proper consideration.
TABLE OF CONTENTS
CHAPTER 1CHAPTER 2EXECUTIVE SUMMARY PROFILE OF THE COMPANY (A) INTRODUCTION (B) HUMAN RESOURCE POLICY (C) FUNCTIONS OF VARIOUS SECTIONS OF HR DEPARTMENT (D) HISTORY (E) PRODUCT PROFILE (F) SALES FIGURES/ MARKET SHARES (G) ORGANISATION CHART CHAPTER 3CHAPTER 4PERFORMANCE APPRAISAL RESEARCH METHODOLOGY (A) OBJECTIVE OF STUDY (B) SCOPE OF STUDY (C) RESEARCH PROCEDURE (D) TYPE OF DATA (E) DATA COLLECTION (F) STATISTICAL TOOLS USED (G) LIMITATIONS OF STUDY CHAPTER 5CHAPTER 6ANNEXURE 1. BIBLIOGRAPHY 2. QUESTIONNAIRE FINDINGS AND ANALYSIS CONCLUSION AND SUGGESTIONS
In my project, entitled-“To analyze the present performance appraisal system of National Thermal Power Corporation Ltd.”, I have studied the present appraisal system of NTPC by analyzing the details of the appraisal system, articulate the organizational, functional, departmental & individual objectives , factors in business dynamics to grade employees on objectives & transparent productivity parameters, self appraisal followed by reporting officer & higher authority’s assessment , link between rewards and performance to increase motivation level of employees , assessment of training & developmental needs of the individuals and make them aware about the parameters used to evaluate their performance. In my own style, I have tried to find out whether the present appraisal system is effective enough to serve the purpose of performance appraisal i.e. to understand the needs of employees and provide them formal & regular feedback related to their performance. For this purpose, I used questionnaires to get the opinions of employees at different levels. I also went through different books, websites and magazines to gather material related to the topic. After collecting the information, I analyzed the data and provide the necessary suggestions to improve the system.
PROFILE OF THE COMPANY INTRODUCTION
National Thermal Power Corporation Limited (NTPC) is the largest thermal power generating company of India. A public sector company wholly owned by Government of India, it was incorporated in the year
NTPC has entered into a joint venture with Alstom. NTPC has set new benchmarks for the power industry both in the area of power plant construction and operations. NTPC is extending consultancy services to various organizations in the power business. NTPC is also managing Badarpur thermal power station (705 MW) of Government of India.4% and it contributed 27. Germany for renovation and modernization of power plants in India.955 MW) and 3 Joint Venture Projects (314 MW). This JV company operates the captive power plants of Durgapur (120 MW). construction and operation of power generating plants and also provides consultancy to power utilities in India and abroad. with power generating facilities in all the major regions of the country. Within a span of 30 years. With its experience and expertise in the power sector.
NTPC's core business is engineering.
. Based on 1998 data. NTPC acquired 50% equity of the SAIL Power Supply Corporation Ltd. As on date the installed capacity of NTPC is 21.749 MW through its 13 coal based (17. carried out by Data monitor UK. Rourkela (120 MW) and Bhilai (74 MW). (SPSCL). NTPC has emerged as a truly national power company. NTPC's share on 31 Mar 2004 in the total installed capacity of the country was 19.480 MW). 7 gas based (3. NTPC is the 6th largest in terms of thermal power generation and the second most efficient in terms of capacity utilization amongst the thermal utilities in the world.6|Page
1975 to accelerate power development in the country.1% of the total power generation of the country during 2003-04. It is providing power at the cheapest average tariff in the country.
powering India's growth". (USAID). This quality of ash produced is ideal for use in cement. Inspired by its glorious past and vibrant present. NTPC has undertaken massive afforestation in the vicinity of its plants.a potential global giant.a symbol of NTPC's concern towards environmental protection and continued commitment to sustainable power development in India. The massive afforestation by NTPC in and around its Ramagundam Power station (2100 MW) has contributed reducing the temperature in the areas by about 3°c. cellular concrete. it set up Ash Utilization Division to manage efficient use of the ash produced at its coal stations. As a responsible corporate citizen.
. In 1991. generating power at minimal environmental cost and preserving the ecology in the vicinity of the plants.7|Page
NTPC is committed to the environment. NTPC is making constant efforts to improve the socio-economic status of the people affected by its projects. building material. NTPC has been Placed under the 'Excellent category' (the best category) every year since the MOU system became operative. Recognizing its excellent performance and vast potential. CENPEEP is efficiency oriented. Through its Rehabilitation and Resettlement programmes. A "Centre for Power Efficiency and Environment Protection (CENPEEP) has been established in NTPC with the assistance of United States Agency for International Development. concrete. Government of the India has identified NTPC as one of the jewels of Public Sector 'Navratnas'. Plantations have increased forest area and reduced barren land. NTPC is well on its way to realize its vision of being "one of the world's largest and best power utilities. NTPC has also taken proactive steps for ash utilization. the company endeavors to improve overall socio-economic status of Project Affected Persons. NTPC was among the first Public Sector Enterprises to enter into a Memorandum of Understanding (MOU) with the Government in 1987-88. eco-friendly and eco-nurturing initiative .
PMI places emphasis on management development. Commitment building. Control & Instrumentation and now encompasses Computer Science. To induct talent and groom them into a dedicated cadre of power professionals "Executive Trainee" Scheme was introduced in the year 1977 for recruitment in the disciplines of Mechanical. Electrical. Chemistry.9|Page
HUMAN RESOURCE POLICY POWERING INDIA’S GROWTH: THROUGH PEOPLE
NTPC strongly believes in achieving organizational excellence through Human Resources and follows "People First" approach to leverage the potential of its 23. 2 simulator training centres and an apex institute namely 'Power Management Institute' (PMI). HR and Finance disciplines also. Besides opportunities for long term education are also
. as well as specific need-based interventions based on scientific Training Needs Analysis. Besides a comprehensive one year training comprising theoretical inputs as well as on-the-job training.500 employees to fulfill its business plans. As part of post employment training and development opportunities. Human Resources Function has formulated an integrated HR strategy which rests on four building blocks of HR viz. Civil. While the project training centres (Employee Development Centres) have specialized in imparting technical skills and knowledge. All HR initiatives are undertaken within this broad framework to actualize the H R Vision of "enabling the employees to be a family of committed world class professionals making NTPC a learning organization". Culture building and Systems building. the new recruits are attached with senior executives under a systematic and formal 'Mentoring System' of the company to integrate them into the Culture of the company. Competence building. NTPC has created 15 project training centres. a systematic Training plan has been formulated for ensuring minimum seven man days training per employee per year and includes level-wise planned intervention designed to groom people for assuming positions of higher responsibility.
Besides a management journal called " Horizon" is published quarterly to enable the employees to share their ideas and experiences across the organization. Quality Circles have been set up in various units/offices in NTPC. Demonstrating its high concern for people. (M. The motivation to perform and excel is further enhanced through comprehensive NTPC Rewards and Recognition system.Tech) etc. NTPC Open Competition for Executive Talent (NOCET) is organized every year in which teams of executives compete annually through oral and written presentation on a topical theme. In order to tap the latent talent among non executives and make use of their potential for creativity and innovation. MDI. These Centers give a good insight to the employees about their strengths and weaknesses. A culture of celebrating achievements and a strong focus on performance are a way of life in NTPC. Gurgaon (Executive MBA programme). In order to institutionalize a strong Culture based on Values a number of initiatives are taken to actualize the Vision and Core Values (COMIT) across the company. Similarly " Professional Circles" have been formed department-wise where Executives of the department meet every fortnight to share their knowledge and experiences and discuss topical issues. the gaps in their competencies which they can bridge through suitable support from company. Delhi. In order to realize the HR Vision of making NTPC a learning Organization by providing opportunities to continually learn new capabilities a number of initiatives have been taken.Tech in Power Generation Technology). medical and recreational opportunities for employees and their family members.10 | P a g e
provided through tie ups with reputed Institutions like IIT. Due to innovative people management practices there is a high level of pride
. NTPC has developed strong employee welfare. BITS. NTPC offers best quality of life through beautiful townships with all amenities such as educational. NTPC has institutionalized "Development Centers" in the company to systematically diagnose the current and potential competency requirements of the employees with the objective of enhancing their development in a planned manner. health & well-being and social security systems leading to high level of commitment. Pilani (B.
Further continuous efforts are being made by HR function to leverage the potential of its employees and become a strategic business partner.11 | P a g e
and commitment amongst employees as reflected in the " Best Employers in India-2003" survey by Hewitt Associates in which NTPC bagged coveted third rank.
.R.12 | P a g e
FUNCTIONS OF VARIOUS SECTIONS OF H.
(L) Promotion in different categories in time with promotion policy/ channel of promotion. directions (procedure being followed in C & D categories). (a) Eligibility (b) Amount of house building advance. (I) Promotion of W 2 to W 3 & W 6 to S 1 employees. of employees).e. of complete reports received & total no. ESTABLISHMENT
(A) Verification of characters & antecedent as per govt. no. (H) Test for promotion of steno typist & stenographer. Number of employees who have been granted study leave. joining formalities etc. (N) Calculation of amount of salary deducted during HPL.
2. (M) Period for which leave is credited in advance for both executive & non-executives.
. (D) Extent of annual assessment being done in case of employees (i. (B) Checking of Submission of relevant and complete document before joining. (c) 2nd advance in case of conveyance. (C) Check whether the personal file is complete in all respect. (O) Grant of study leave as per rules. (E) Review discussion with executive before annual assessment. (F) Appoint appraising authorities for different levels. (J) How is period of unauthorized absence being treated in promotion cases. especially nomination papers. (P) Diseases for which quantitative leave is sanctioned.13 | P a g e
FUNCTIONS OF HR-EB (EMPLOYEE BENEFIT) SECTION 1. (G) Communication of adverse remarks. ADVANCES
(A) House building advance / conveyance advance sanctioned strictly as per rules. (K) Promotion of employees against whom disciplinary action has been taken.
(C) System of check in case surety resigns in HBA. (E) Commencement of recovery of HBA.14 | P a g e
(B) Penal interest being charged in case of default under conveyance advance scheme. (D) Hypothecation of vehicle being ensured or not.
furniture etc. (b) Picnics upto 180 kms. TOWNSHIP ADMINISTRATION
(A) Allotment of quarters to employees according to the availability of quarters & priority of the employee. (B) Issuance & entitlement of different items to various employees with in the company.For E3 & above D type . resident’s welfare associations etc.For W8 & above C type . (C) Responsibility of security of plant & township both.For all employees B type . EMPLOYEE SERVICES & OFFICE MANAGEMENT SYSTEM
(A) To fulfill the requirements of furniture in different departments of the company. For plant security CISF personnel are deployed while for township security private guards are used. (c) Company also pays 90 % of the tour to the employee once in a year. (D) To manage all activities related to VVIP’S visits. (D) Welfare activities include ladies clubs.For E5 & above (B) Regarding education policy NTPC provides only infrastructural help like building.
TYPES OF QUARTERS
A type .
2. (a) Company provides Rs. for education institute. (C) To ensure proper allotment of office space for officer’s cabins.15 | P a g e
FUNCTIONS OF HR-ES (EMPLOYEE SERVICE) SECTION 1. 1100 for marriage & a car for 3 days to the employee. canteen. are organised by the company for employees.
(B) They also engage visiting doctors for the dispensary of the company on temporary basis. operator etc.
2. BTPS. (C) There is a provision of recruitment of fixed number of physically handicapped employees in the company. diploma and certificate holders). where they are required. to other departments.16 | P a g e
FUNCTIONS OF HR-IE (INDUSTRIAL ENGINEERING) SECTION 1.
. (B) IE section also look after the complete Human Resource Management System of the company. (C) They address the grievances of the employees and provide information to the management.e. (D) They are engaged in the transfers of the employees with in the project i. (E) They give incentives to the employees for their good performance. MANPOWER PLANNING
(A) Redeployment of employees like draftsman. RECRUITMENT
(A) IE section is responsible for recruitment of trainees/apprentices (ITI.
(B) They provide information to the corporate office regarding promotion of executive employees. (C) IE section also carry out a quarterly magazine called ‘Sankalp’ in which different informations are included.17 | P a g e
TYPES OF INCENTIVES
(a) ‘Meritorious productivity award’ given on 26th January & 15th August in the form of cash. EMPLOYEE DEVELOPMENT
(A) There is a suggestion scheme for employees in which they can give their suggestions to the management of the company. (B) Company also has job rotation policy for the employees.
3. (c) ‘Badarpur Bhushan award’ given yearly to those employees whose last 3 years performance is outstanding. (b) ‘Star of the month award’ given on monthly basis in non monetary form. PROMOTION
(A) Promotions of non executive employees are carried out by IE section.
to 5. Regarding welfare activities of the employees.m.18 | P a g e
FUNCTIONS OF HR-ER&W (EMPLOYEE RELATION & WELFARE) SECTION
Badarpur Thermal Power Station has two tier system of working(A) General staff (from 8.
. basis and different operational activities are carried out continuously. For general staff Sundays are weekly off while for the operational staff every 4 th day is off. lunch & dinner is provided to the employees.30 a.
(A) Canteen facility for breakfast. (C) There are separate toilets for ladies & gents in the company. both statutory & non statutory facilities are provided.m ) (B) Operation staff (work in 3 shifts) The powerhouse runs on 24 hrs. (B) Rest rooms for the purpose of relaxation are also available for employees.00 p.
(F) House building and conveyance advances are given to the employees.
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NON STATUTORY FACILITIES
(A) Accommodation facility is provided to the employees of the company. (B) There is a provision of education facility to the wards of the employees. (D) Ladies club & NTPC club for recreation purpose of the employees (E) Company also provides personal accident insurance to the employee. (C) Balbhavan for small childrens for the purpose of their development. .
by this year. The
. The Farakka project was also approved by the Government Year 1982 Steering ahead with times. A modest beginning with strong determination and high spirits. Another opportunity came across in the form of the handover of Badarpur to NTPC by Central Government for better management and improved performance. The first unit of the Korba project was commissioned and the Ramagundam project began commercial operation by 1983. The Rihand project was also cleared by Government of India with British assistance. The expansion and advancement of the company was continuous and speedy. moving ahead.
Implementation of Ramagundam and Korba Projects was cleared by Government of India.20 | P a g e
November. the first unit of 200 MW of Singrauli. NTPC . Construction of the Singrauli-Kanpur line of 400 kV initiated. strength and a responsible growth was born.a breakthrough in power transmission. for the first time. 1975 Foundation laid for NTPC. December. gathering pace and heading on to what is today projected as a benchmark in the power generation sector. the HVDC (High Voltage Director Current) technology employed for power transmission from Rihand to Delhi.An organization symbolizing reliability. The first super thermal power project at Singrauli was cleared by Government of India. was successfully commissioned on February 13. 1976. Year 1984 A technological revolution . Year 1978 The year saw the initiation of a lot of developmental activities.
acting as a window for the globalization of NTPC operations.. Year 1989 To serve the power sector in India and abroad . Vindhyachal. Farakka also entered operational phase. NTPC achieved a complete turnaround in the operation of the station. Auraiya and Anta together. The Korba project added first 500 MW Unit. Two units with a capacity of 210 MW each were commissioned by NTPC after take over. Ramagundam.21 | P a g e
World Bank agrees to provide $ 485 million for three combined cycle projects at Kawas. The first unit of 500 MW at Rihand was also commissioned by year 1988. Year 1994
. also came on stream.. Kahalgaon Project went on stream by synchronizing its first unit.234 MW was made at Korba. Year 1991 saw the commissioning of the first unit of the Dadri project. the first 210 MW unit of Vindhyachal project. Year 1987 The first bud sown by NTPC burst full bloom. Keeping in line with all the developmental activities.the Consultancy Wing was launched. The Singrauli project achieved the full capacity of 2000 MW. Rajasthan achieves full capacity. Year 1986 NTPC entered into the 500 MW era by synchronizing its first 500 MW unit at Singrauli in 1986. Auraiya and Anta. Year 1990 NTPC's first gas based combined cycle power plant at Anta. A capacity addition of 3. The Kawas project with a capacity of 645 MW became fully operational by year 1993. which now has a capacity of 2260 MW. Rihand. Year 1992 Unchahar project with a capacity of 420 MW was taken over from the Uttar Pradesh Rajya Vidyut Utpadan Nigam (UPRVUN).
. aimed at reducing environmental pollution. The centre proved a great help in minimizing the environmental impacts of the stations and also preserving the natural ecology in the vicinity of the stations. To improve efficiency and profitability. To achieve a synergy between environmental concerns and utility needs.
• • •
To acquire state-of-the-art technologies and practices to optimize performance by plants. The Centre for Power Efficiency and Environmental Project (CENPEEP) was set up.22 | P a g e
The first unit of Jhanor-Gandhar Gas Project was synchronized.
the first Hydro Electric Power Project with a capacity of 800 MW in Himachal Pradesh. acclaim and appreciation and above all assuming the role of a market leader in the field of power generation. with committed time schedules. innovating. NTPC also took over Tanda Thermal Power Station (440 MW) of Uttar Pradesh State Electricity Board (UPSEB).000 MW capacities by year 2012.
. NTPC has been declared worlds sixth largest thermal power producer during 1998. By the year 1997. Venturing out. Developing a participative management culture. short and long term plans. Building up well defined.K. Keeping pace with its ongoing mission of constant. improvement everyday. promoting and organizing an integrated development of thermal power in India. by Data monitor. leading on and reaching pinnacles of success. U. Duly recognizing the socio-economic needs and aspirations of its employees and undertaking full scale efforts to meet them. A beginning made with Koldam.435 MW capacities moving towards substantial 40. Pursuing its major objectives of planning. the first Naphtha based plant of the country at Kayamkulam with a capacity of 350 MW came on stream. responsible development and continuous progress and growth. the Government also approved the Simhadri project with a 1000 MW capacity and the Faridabad Gas project with a capacity of 430 MW. NTPC-A globally recognized organization for commitment to Quality in works and services.23 | P a g e
Year 1995 The first 500 MW unit of Talcher Super Thermal Power Project commissioned. All these moves leading to industrial harmony and progress of the company. the organization strove towards. Year 2000 The power generation capacity of this premier organization reaches a towering high of 19. NTPC's foray in the Hydro sector. Year 1998 By this year. Winning laurel. loyalty and promptitude of those involved. evolving planned and organised functioning and ensuring dedication.
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In total it has 13 coal based. .25 | P a g e
NTPC is engaged in generating power through its different power stations viz. The complete station wise list with respective capacity is given below-:
Power Stations Managed by NTPC
Coal Based Stations Gas Based Stations Joint Ventures Total
No. gas/liquid fuel based & joint ventures.249 MW. 07 gas/ liquid fuel based & 03 joint ventures with Steel Authority of India Limited.404
(A) COAL BASED Singrauli Ramgundam Korba Farakka Vidhyanchal Rihand Kahalgaon Dadri Uttar Pradesh Andhra Pradesh Chattisgarh West Bengal Madhya Pradesh Uttar Pradesh Bihar Uttar Pradesh 2000 2600 2100 1600 3260 2000 2340 840
. It is also managing Badarpur Thermal Power Station (705 MW) of Government of India.coal based. Its total commissioned capacity including the joint ventures is 22. of stations
14 7 4 25
22395 3955 1054 27.
2.76% over previous year’s generation of 133. The fourth 500 MW unit at Talcher-Kaniha has also been synchronized in October. 708 crore. 5.85 Billion Units (BUs). Projects totaling 5300 MW capacity under various stages of construction.3607. This is besides the generation of the NTPC SAIL joint venture companies. Capacity addition of over 9370 MW planned for 10 th plan and about 11210 MW for 11th plan. Return On Capital Employed (ROCE) and Return On Net Worth (RONW) 10. It once again surpassed all MoU targets for the year 2002-03 in the Excellent category. Turnover of Rs. Generated 140.26 | P a g e
SALES FIGURES AND MARKET SHARES
NTPC has shown a remarkable performance in the areas of operation and maintenance. 4. 3.19. Total dividend paid for 2002-03 is Rs. 2003. an increase of 5. 7.
. Some of the highlights of its excellence are-: 1. 6.88% and 12. Achieved all MoU targets in the excellent rating during the year 2002-03 for the 16 th consecutive year.58 crore and Net Profit after tax Rs.13% respectively. With 19% of the country’s installed capacity.57 crore. NTPC contributed 26% of electricity.984. 1000 MW capacity added during 2002-03. 8.19 BUs.
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ORGANISATION CHART OF HR DEPARTMENT AT BADARPUR THERMAL POWER STATION
.MGR.E.&W/M Trg. (PR)
OFF.MGR. (HR-ES) Schools & G.H. (Rajbhasha)
MGR. (HR-ER) Discp.MGR. (HR-EDC)
DY. (HR-ES) MGR. (HR-ER)W.OFF. ED activities
SR. (CSR) A.OFF. (LAW) Also look after ER functions
MGR. (HR-ES) DY.MGR. (HR-EB)
ENGR. (HR-EDC) Exec. (HR-EB) Also look after welfare functions
SR.28 | P a g e
performance appraisal is the systematic evaluation of the individual with respect to his performance on the job and his potential for development.
PURPOSES OF PERFORMANCE APPRAISAL
1. It is a continuous process to secure information necessary for making correct and objective decisions on employees.29 | P a g e
PERFORMANCE APPRAISAL DEFINITION
Performance appraisal includes all formal procedures used to evaluate personalities. contributions & potentials of group members in a working organization. Training and Development 5. Forced Distribution
. In simple words. Unstructured Appraisal 2. Transfers 3. Promotions 2. Personnel Research 6. Self Improvement
METHODS OF PERFORMANCE APPRAISAL TRADITIONAL METHODS
1. Employee Ranking 3. Wage and Salary Administration 4.
Behaviorally Anchored Rating Scales
BENEFITS OF PERFORMANCE APPRAISAL EMPLOYER’S PERSPECTIVE
1. Documentation of performance appraisal and feedback may be needed for legal defense. 3. Critical Incidents 7.
. Management by Objectives 2. Field Review
1. Despite imperfect measurement techniques. Graphic-Rating Scales 5. Performance appraisal dimensions and standards can help to implement strategic goals and clarify performance expectations. 4. It provides a rational basis for constructing a bonus or merit system. individual differences in performance can make a difference to the company’s performance. Check-Lists 6.30 | P a g e
Fairness requires that differences in performance levels across workers be measured and have an effect on the outcomes. Despite traditional focus on the individual. Performance feedback is needed and desired by the individual employee to improve his/her performance.
PROBLEMS AFFECTING THE VALIDITY OF PERFORMANCE APPRAISAL SYSTEM 1. appraisal criteria can include teamwork and teams can be the focus of teamwork. Providing feedback is a part of the performance management process. 2.
. HALO EFFECT
This type of error occurs when the rater allows one aspect of a man’s character or performance to influence his entire evaluation. 6.
1. CENTRAL TENDENCY
This error occurs when the rater is in doubt about the subordinates or has inadequate information about them or is giving less attention and effort to the rating process.31 | P a g e
2. 3. Assessment and recognition of performance levels can motivate workers to improve their performance.
Often some raters evaluate persons on the basis of their performance in recent few weeks. Lenient raters consistently assign high values to their subordinates. average constant behaviour is not checked.
5. STRICTNESS ERROR
Some other types of supervisors have a tendency to be harsh in their ratings. They continuously give low ratings to their subordinates.32 | P a g e
4. This type of error results in wrong evaluation of the performance of subordinate.
RESEARCH METHODOLOGY OBJECTIVES OF STUDY
. LENIENCY ERROR
Some supervisors have a tendency to be easy raters.
To study about create a direct link between rewards & performance to increase the motivation level of employees. by reviewing officer and final assessment by moderation committee.
. To study and make employees completely aware about the parameters used for evaluation of their performance. appraisal by reporting officer. To study about the system of self appraisal. To study about assessment of training & developmental needs of individual employees.33 | P a g e
• • • • • To identify factors in business dynamics to grade employees on the objectives & transparent productivity parameters.
2.. Formal feedback is not provided to the employees on regular basis. Discussion with senior officers to understand the expectations of the company. 6. They are not aware about the parameters on which their performance is measured. 2.Below this level no weightages are assigned to different attributes which differ according to their importance. To collect information from functional heads about the technicalities involved in performance appraisal viz. All the above mentioned problems need immediate improvement and attention of the management of the company. managed by National Thermal Power Corporation Ltd. 4. 4. KRA’s & suggested weightages. 1 . There is no direct link between the rewards and performance of individual employee. Understanding the nature & scope of business. 5.
RESEARCH PROCEDURE STEPS IN RESEARCH
1. Below E6 level “Management By Objectives” is not followed and hence the employees are not clear about their functions based on these objectives.34 | P a g e
SCOPE OF STUDY
In Badarpur Thermal Power Station. there is still sufficient scope for improvement in the performance appraisal system below E7 level.
. 3. the organizational & departmental structure. 3. There exist communication gap between superiors & their subordinates. Study the existing review system of the company.
Gather information from different sources like books. The major emphasis was on the discovery of ideas & opinions of the employees at different levels to improve the existing appraisal system. Two methods were used for the study-: 1. 8. 2. The survey of concerning literature. Prepare questionnaires on the basis of above information. Obtaining the opinions & expectations of employees at different levels of the company. Workman’s
. Executives 2. internet etc. The experience survey
The sampling design used for the study was “ Stratified Sampling”. Meetings with employees of different departments to incorporate their views. 7. about performance appraisal. The different strata or homogeneous groups formed were-: 1. On the basis of responses from the employees and the information gathered from other sources. Supervisors 3.35 | P a g e
5. prepared the report with mentioning the necessary changes required in the appraisal system. 9.
Research design was adopted for the “Exploratory Research Study”. 6. The main purpose of the study was to formulate the problem in appraisal system for investigation. magazines.
2. New Delhi.
In total 34 employees were interviewed during the study.36 | P a g e
The sampling unit was “Badarpur Thermal Power Station”. SECONDARY DATA
Secondary data are those which have already been collected by someone else and hence passed through the statistical process. For the collection of primary data following methods were used-:
DATA COLLECTION METHODS
In the survey two types of data were collected-:
1. PRIMARY DATA
Primary data are those which are collected for the first time and therefore original in nature.
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(A) OBSERVATION METHOD
In observation method. SECONDARY DATA COLLECTION
Secondary data were collected from the following sources-: (A) Books related to the topic (B) Company documents (C) Magazines (D) Websites
STATISTICAL TOOLS USED
Statistical tools used in the project study are-: 1. PIE CHARTS 3. And the interviews were structured in nature.
(C) QUESTIONNAIRE METHOD
I prepared a structured questionnaire on the basis of information collected from different sources. But the style of observation was unstructured. BAR GRAPHS 4. TABLES 2. The questionnaire contains both open & closed ended questions. I observed the behaviour & tone of the employees while giving the answers.
(B) INTERVIEW METHOD
I took personal interviews of the employees at different levels to get their opinions & expectations. LINE GRAPHS
5. Some of the employees were not very forthcoming in their responses & reluctant to answer the questionnaire. so it was not possible to cover all the departments. 4. 2. 3. is an effective one. Night shift employees were unapproachable due to odd timings of their job. Some of the documents of the company were not accessible due to confidentiality. according to you.38 | P a g e
LIMITATIONS OF STUDY
. And some are influenced by the opinions of their colleagues. The organization was very large. 6. Many employees didn’t have time to give interviews. Responses of few of them were biased due to fear of the management.
FINDINGS AND ANALYSIS
Q1. Some of the employees were inaccessible as they were absent during the period of survey. The present appraisal system. 7.
Do you feel comfortable with your reporting officer while discussing your KRA’s/ performance?
29% Yes No Can’t say 12% 59%
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12% 38% Yes No Can’t say
Is this criterion sufficient to judge your performance?
47% 38% 47% 24% Yes No
Yes No Can’t say
Can’t say 38%
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Q3. Are you aware of the criteria used for your performance3 appraisal?
21% Q6.41 | P a g e
Yes No Can’t say
Yes No Can’t say
. The formal appraisal done by the organization matches your self assessment. Monetary & non monetary rewards are given to you are based on your performance 24 % appraisal rating.
In case of adverse entry.
Yes No Can’t say
Q8. is it properly and timely communicated to you and do you get sufficient opportunity to appeal to the higher authorities?
Yes No Can’t say
. The formal feedback and development of new or better job related skills are in accordance with your performance appraisal.42 | P a g e
Formal appraisal system helps in discovering your true potential for higher responsibilities. Do you think sufficient time has been given to you for discussion and guidance to improve your performance?
9% 38% Yes No 53% Can’t say
Yes No Can’t say
Q10.43 | P a g e
15% Yes No Can’t say 35% 50%
Q12.44 | P a g e
24% 29% Yes No Can’t say 47%
. Performance appraisal system helps in reducing the communication gap between the superiors and subordinates.The performance appraisal system helps superiors to know their employees in better way.
32% Yes No Can’t say 9% 59%
FINDINGS AND ANALYSIS
. Mid-term review (after 6 months) of employee’s performance.
32% Yes No Can’t say 9% 59%
Q14. instead of annual review is beneficial. below E6 level.45 | P a g e
Q13. Introduction of a computerized system will make the performance appraisal system more effective.
2. Many employees are not aware about the criterion used for their appraisal. Proper weightages are not assigned to different attributes which differ in their importance. 4. The present performance appraisal system below E7 level is not effective enough to serve the purpose of employee’s appraisal. There is a wide gap between the self assessment by the employee and the formal appraisal done by the organization. 5. The appraisal system does not help the employees to discover their true potential for higher responsibilities. following points has emerged out which require the attention of the management-: 1. Employees do not get sufficient opportunity to appeal to the higher authorities in case of adverse entry. 7. it is not sufficient to judge their performance. There is no provision of incentives to the individual employee based on his/her performance appraisal rating. 9. Below E6 level the “Management by Objectives” approach is not followed and hence the employees are not clear about their functions based on these objectives. 8.
. 6. 3.46 | P a g e
On the basis of the survey conducted. 10. According to those who know about the criterion. Formal feedback is not provided to the employees on regular basis.
Training is not provided to the employees on the basis of his/ her performance appraisal rating. No emphasis is given on the behavioral aspect of the employees which affect their performance considerably.
. 13. 12.47 | P a g e
11. There is considerable amount of communication gap between the superiors & subordinates.
It’s a two way communication process.
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CONLUSION AND SUGGESTIONS
1. 10. 4. 5. so that executives at lower levels should also be aware about their functions based on these objectives. Appraise should be allowed to present their own opinions and perceptions freely but in a calm and factual manner. 8. Both appraiser & appraise should combinedly set realistic targets that can be achievable. therefore a subordinate can also initiate the process. Weightages should be assigned to different attributes according to their importance. job responsibilities etc. identifying barriers they faced in doing their jobs and refamiliarise themselves with their job descriptions. Before setting the KRA’s. Reporting officer should make the employees aware about the criterion used for their performance appraisal. by the manager. Performance appraisal should not be concentrated to forms only but on its purpose of performance improvement by removing barriers to job success. otherwise the procedure of setting KRA’s is wastage of time. the employees should prepare themselves by reviewing their work beforehand. “Management by objective” approach should be introduced below E6 level and upto E1 level. 3. Formal feedback should be provided on regular basis to the employees. 7. based on their performance. 9. Behavioral aspect of the employee should be given due importance while reviewing his performance. It will motivate the employee. 6. 2. Monetary & non monetary incentives should be given to the individual employee on the spot. so that problems can be prevented in their early stages.
12. The procedure of performance appraisal should be transparent in the sense that the employee should be aware about his/her appraisal rating. It will help him/her to get new skills.49 | P a g e
11. there should not be fixed time limit for promotion and employees get higher responsibilities on the basis of their potential and aptitude. there should be potential appraisal along with performance appraisal at this level and above. as he/she can see his/her ratings on the computer whenever they want.
. 15. It will reduce the time required to do appraisal and at the same time bring transparency between the appraisers and appraise. 14. Training should be provided to the employee on the basis of his/ her performance appraisal rating. A password should also be assigned to the employee to keep his/her ratings confidential. After the level of manager. Communication gap between the appraiser & appraise should be reduced by means of performance appraisal & regular meetings. 13. So. Make employees more accountable towards their duties and responsibilities. A computerized system should be introduced to fill the forms and submission at supervisor level and above. 16.
Ralph Westfall. Stasch
Business World Business Today Outlook The Times of India The Hindu Business Standard Line
www.Harper W.K. is an effective one.co.50 | P a g e
Human Resource Management .com
1 The present appraisal system.C.ntpc.L. according to you. Boyd.Gary Dessler Human Resource & Personnel Management .com www.toolpack.bpubs. N.google.com www. Chhabra Human Resource Management .T.com www.
.Ashwathappa Research Methodology .ntpcindia.Kothari Marketing Research . Stanley F.in www.
YES NO CAN’T SAY
. YES NO CAN’T SAY
8 In case of adverse entry.51 | P a g e
YES NO CAN’T SAY
2 Do you feel comfortable with your reporting officer while discussing your KRA’s/performance? YES NO CAN’T SAY
3 Are you aware of the criteria used for your performance appraisal? YES NO CAN’T SAY
4 Is this criterion sufficient to judge your performance? YES NO CAN’T SAY
5 The formal appraisal done by the organization matches your self assessment. YES NO CAN’T SAY
7 The formal feedback and development of new or better job related skills are in accordance with your performance appraisal. YES NO CAN’T SAY
6 Monetary and non monetary rewards given to you are based on your performance appraisal rating. is it properly and timely communicated to you and do you get sufficient opportunity to appeal to the higher authorities? YES NO CAN’T SAY
9 Formal appraisal systems help in discovering your true potential for higher responsibilities.
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10 Do you think sufficient time has been given to you for discussion and guidance to improve your performance? YES NO CAN’T SAY
11 The performance appraisal system helps superiors to know their employees in better way. YES NO CAN’T SAY
Suggestions: 1 2 3 Category: Supervisor/ executive NO CAN’T SAY
. instead of annual review is beneficial.53 | P a g e
12 Performance appraisal system helps in reducing the communication gap between the superiors and subordinates. below E6 level. YES Reasons: 1 2 3 15 Your valuable suggestions to further improve the performance appraisal system. YES NO CAN’T SAY
13 Mid-term review (after 6 months) of employee’s performance. YES NO CAN’T SAY
14 Introduction of a computerized system will make the performance appraisal system more effective.