Project of Srivani (Rinl)

Performance Appraisal System
INTRODUCTION
Appraising the performance of individuals, groups, and organizations is a common practice of all societies. Appraisal of one individual by another individual is a continuous process and it is Natural phenomenon in human beings. This is constantly done,
consciously or unconsciously in our day-to-day interaction, either in family life or in a social setting or in an organization for that matter. While the individual or a group uses appraisal in its own fashion depending upon the need of the situation, in an organization it becomes necessary to adopt a formal methodology of appraisal system because of the requirement of measuring the performance for considering suitable reward or punishment or for assessing the potential of a person to increase the responsibilities. n short, there is a great requirement for assessing the efficiency to gear up the productivity of the wor! " force.To meet the growing domestic needs of steel , government of ndia decided to set up an integrated steel plant at visa!hapatnam .An agreement was signed with erstwhile #$$% in &'(' for co-operation in setting up ).*+t integrated steel plant at visa!hapatnam. The completion of construction and commissioning of the whole plant in &'',, the cost escalated to around -.//cr . t is the modern steel plant in the country .The
plant was dedicated to the nation on &st August &'', by the prime minister ,$ri 0.1.Narasimha %ao . development is 2%3 is well recognized every where that human competency pre-requisite for any growth or development of
the essential
organization . t is a newly emerging field of study . 0erformance appraisal system is one of the mechanisms of 2%3.
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NEED FOR THE STUDY

The study is needed in order to:
&. 0rovide information about the performance ran!s basing on which decisions regarding salary fi4ation , confirmation , promotion , transfers , and demotions are ta!en . ,. 0rovide feedbac! information about the level achievement and behavior of sub-ordinates . This information helps to review the performance of
rectifying performance deficiencies and to set new standards of wor! , if necessary ). 0rovide information which helps to counsel the sub-ordinates. *. 0rovide information to diagnose deficiency in employees.
.. 0rovide information for correcting placement. 5. To control grievances and in disciplinary activities.
(. To guide the 6ob changes with the help of continuous ran!ing. -. To facilitate fair and equitable compensation based on performance. '. To facilitate for testing and validating selection tests, interview techniques through comparing their scores with performance appraisal ran!s. &/. To provide information for ma!ing decisions regarding lay off, retrenchment etc. To ensure organizational effectiveness, through correcting employee for standard and improved performance, and suggesting the change in employee behavior
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SCOPE OF THE STUDY

The study covers all the e4ecutive employees of various departments li!e - %73 - 0ersonal department - Administrative - Telecom - 8egal affairs - 9eneral administrative - :AT3 - 2%3 These e4ecutive employees belong to various functional area and shifts. $tudy covers with in the organization rules 7 regulation 1iew of the employees is as considered as their perception to words the e4isting 0A$ The study covers all the policies of the organization and their implementations on individual employees.
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OBJECTIVES OF THE STUDY

The following are the specific ob6ective of the present study. To study the performance appraisal system history and their activities in 1$0. To study and assess the e4ecutive performance system and its effectiveness. To analyze the drive towards quality that is integrated into e4ecutive performance appraisal. To assess the training and development needs of employees. To identify and suggest the main cause of deficiency in performance of employees. To effect promotions based on competence and performance To create and maintain a satisfactory level of performance.
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METHODOLOGY
To get information about satisfaction level of employees from performance appraisal system and its effectiveness a stratified sample survey was conducted. The information required for ma!ing comprehensive study on the performance appraisal system for their growth in the 6ob career .To evaluates the performance of employees is followed by two ways of sources. That is primary and secondary sources. The pro6ect is based on primary and secondary data. The research design for the study is as follows; $A+08< $ =<
$TAT $T >A8 3ATA
0% +A%? 3ATA
$<>@N3A%? 3ATA
SAMPLE SIZE:
A sample size of ./ correspondents was chosen as it was wor!ed out to be optimum considering the constraints of the resources.
STATISTICAL DATA:
Aor the purpose to analyze, tactical tools such as bar graphs have been use
PRIMARY DATA:
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nformation, which has been for the first time, is called B0rimary dataC. n my study, the primary data has been collected by means of 0ersonnel nterviews with the help of questionnaire. The questionnaireDType of questions- >losed ended, $cale- 8i!ert $cale, No. of questions-,,, Ewas used !eeping in view the ob6ectives and proposed mode of analysis based on different standards of measurement determined for evaluation of ob6ectives. A lot of information was collected by some observations, also some points were noted while observations. $ome respondents were not able to understand the questionnaire properly so e4plained the questionnaire and as!ed them to fill it. Ainally the collected data was analyzed with the help of bar diagrams and presented in the chapter. $ome suggestions were offered based on findings and conclusions.
SECONDARY DATA:
t can be through overall annual reports performance of employee. The performance of the employee can be determined through some techniques are used by the organization .The records maintained by 2% department served as valuable source of secondary information required
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LIMITATIONS OF THE STUDY

The study is how ever subjected to certain limitation: The e4isting system studies that no attempt has been made to identify complete new and dynamic performance system due to the constraints. The time available for the pro6ect wor! was , months. and
The study may not cover all the employees of all the departments as the time is a ma6or constraint.
All the information gathered in this regard is mostly through personal discussions according to the !nowledge of the employees.
nformation ta!en for this study is purely based on the companiesC norms and conditions and no confidential matter is included in it.
0erformance Appraisal of individual employee is ta!en into consideration.
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INDUSTRY PROFILE
STEEL INDUSTRY:
$teel industry is the bac! bone of all industrial commercial activities. %ealizing these countries planners have been formulating and updating annual plans for production of iron and steel. n this conte4t a number of steel plants were setup. The steel industry plays a vital role in the growth of nationCs economy. $teel is such a versatile commodity that every ob6ect we see in our day to day life has used steel either directly or indirectly in its product. To mention a few it is used for such small items as nails, pins, needles etc., agriculture implements boilers, ship fabrication, railway materials, automobile parts, etc. to have machine structure. The great investment that has gone into the fundamental research in iron and steel technology has helped both directly and indirectly in many modern fields of todayCs science and technology. t would have been very painful to imagine the fate of todayCs civilization if steel has not been there. $teel is versatile and indispensable item. The versatility steel has not been there. $teel is versatile and indispensable item. The versatility steel can be traced mainly of three reasons. t is only metallic item, which can be continently and economically produced, in large quantities. t has got very good strength coupled with density and malleability.
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ts properties can be changed over a wide range. t alloys easily with many of the common element.
INDIAS STEEL SCENARIO

ndian steel industry has always remained isolated and protected by government, where the steel industry was never e4pected to generate profit from business, but was e4pected to provide employment to the unemployed. 0resently ndia is operating with open-hearth furnaces. The e4isting equipment, energy and labor in ndian steel industry are much low than developed countries. ndian steel industry generates a significant amount of waste materials, which can cause environmental problems. The four aspects of FWaste +anagementG namely- residue reprocess, recycle and recovery do not hold much ground in the ndian steel industry. The ndian companies cannot spend more for pollution control. The energy consumption per tone is ./-&//H higher than that of the international norms. The ndian steel industries have developed a bit in the recent years. The production is growing on properly. +any techniques are being implemented in the steel industries. The countryCs aim is to sell quality steel. The government is also helping the steel industries in this basis. The apparent consumption of steel is shown below. The development of steel industry in ndia should be viewed in con6unction with the type and system of government that had been ruling the country. The production of steel in significant quality started after &''/. The growth of steel industry can be conveniently started by dividing the period into pre and post independent era. n the period of pre independence steel production was &.. million tones per year, which was raised to
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'./ million tones of target by the seventies. This is the present of the bold steps ta!en by the government to develop this sector.
WORLDS DEMAND FOR STEEL:

The total demand for steel in world is e4pected to grow at an annual rate of &.(H between &'). and ,/// A.3. as per the study concerned by china economists. According to their estimation total demand in advanced industrial countries on a whole is e4pected to grow at /.5H annual rate following a ,.,H rate between &'(* to &'-*. steel demand is less developed countries on a whole is e4pected to grow at a ...H annual rate up to ,/// following a ).& annual growth rate between &-*-&''*. Within the controlling plant
economy the <astern <urope erstwhile #$$% region may have /.)H annual steel demand growth. $teel demand in china, North Iorea region would grow at *./ annual rates up to the end of this century at a (..H per annual growth during &'(*-&'-/.
HIGHLIGHTS OF PRESENT STEEL SCENARIO:

The world steel shows a low growth demand. There is a threat to steel industry from competitive products li!e plastics, aluminum, etc. 3eveloped countries slowly reduced the production of steel. 3eveloping countries li!e >hina are planning to produce steel as much large quantity then of present output of -/ +t. per annum. ndia consciously and strategically decides to invest into steel production. 0reference is given to superior quality products and high value item production.
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>ustomer oriented approach in view of product oriented approach. <mergence of new technology li!e scraps preheating.
GROWTH OF STEEL INDUSTRY

The growth in a chronological order is depicted below: S.No YEAR 1 183 GROWTH @sier +arshall heather constructed the first manufacturing plant at port-motor in +adras presidency. ! 3 18"# 18$$ James ers!in founded the Kengal frame wor!s. Jamshedi6i TATA initiated the scheme for an integrated steel plant. # & % " 1$ % 1$11 1$18 1$# Aormation of T $>@. T $>@ started production. T $>@ was founded. Aormation of +ysore iron and steel initiated at Khadravathi in Iarnata!a. 8 1$&1'1$&% Airst five-year plan " The 2industan steel limited D2$8E was born in the year &'.* with decision of setting up three plants each with & million tones in got steel per year at %our!ela, Khilai, 3urgapur. T $>@ started its e4pansion program. $ 1$&%'1$%1 $econd five-year plan " A bold decision was ta!en up to increase the ingot steel output in ndia to 5 million tones per year and its production at %our!ela, Khilai and 3urgapur steel plant started. 1 1$%1'1$%% Third five-year plan " 3uring the plan the three steel plants under
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2$8, T $>@ 7 T $>@ were e4pandedL 11 1! 1$%# Ko!aro steel plant came into e4istence.
1$%%'1$%$ %ecession period " Till the e4pansion programmes were actively e4isted during this period.
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1$%$'1$"# Aourth five-year plan " $alem steel plant started. 8icenses were given for setting up of many mini steel plants and re-rolling mills government of ndia. 0lants in south are each in 1isa!hapatanam and Iarnata!a. $A 8 was formed during this period on ,*th January &'()
1#
1$"#'1$"$ Aifth five-year plan " The idea of setting up fifth integrated steel plant, the first re-based plant at 1isa!hapatanam too! a definite shape. At the end of the fifth five year plan the totaled installed capacity from si4 integrated plants was up to &/.5 million tons.
1&
1$"$'1$8
Annual plan. The <rstwhile soviet union agreed to help in setting up the 1isa!hapatanam steel plant.
1%
1$8 '1$8& $i4th five-year plan " Wor! on 1isa!hapatanam steel plant started with a big bang and top priority was accorded to start the plant. $chemes for modernization of Khilai steel plant, %our!ela steel plant, 3urgapur steel plant and T $>@ were initiated. >apacity at the end of si4th five-year plan from si4 integrated plants stood &&../ million tones.
1"
1$8&'1$$1 $eventh five-year plan " <4pansion wor!s at Khilai and Ko!aro steel plant completed. 0rogress of 1isa!hapatanam steel plant pic!ed up and the nationalized concept has been introduced to
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commission the plant with )/ +T liquid steel capacities by &''/. 18 1$$!'1$$" <ight five-year plan " The visa!hapatanam steel plant was commissioned in &'',. The cost of plant has become around -(.. crores. 1isa!hapatanam steel plant started the production and modernization of other steel plants is also duly engaged. 1$ 1$$"'! ! Ninth five-year plan " %estructuring of 1isa!hapatanam steel plant and other public sector underta!ings.
STEEL PLANTS WITH FOREIGN COLLOBORATIONS

S.No P()*+ Co((),o-)+.o* C)/)0.+1 o2 F.*.3456 S+55( P-o670+3 & , ) * %our!ela $teel 0lant Khilai $teel 0lant 3urgapur $teel 0lant Ko!aro $teel 0lant West 9ermany <rstwhile #$$% Kritan <rstwhile #$$%
S No
P()*+
Co((),o-)+.o*
C)/)0.+1
o2 A**7)( P-o670+.o* (,,/,/// Tones
F.*.3456 S+55( P-o670+3 & %our!ela 0lant , ) Khilai $teel 0lant 3urgapur 0lant <rstwhile #$$% $teel West 9ermany
(,(/,/// Tones -,//,/// Tones
$teel Kritain
PROBLEMS OF STEEL INDUSTRY:
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LACK ! "A# $AT%"&ALS:

Non-availability of good quality raw material is another problem faced by iron and steel industry. The modern giant blast furnace needs high-grade iron ore and good metallurgical coal. Aurther the industry is unable to get good quality co!e and manganese is which the principal raw materials ne4t to iron ore are unfortunately most of our resources of manganese ore are of poor quality besides the non availability of good quality raw material, regular supplies of raw materials are very much handicapped due to the absence of good transport facilities. Another problem faced by the steel industry related to the difficulty in getting zinc supplies for the continuous galvanizing line.
LACK ! T%C'(&CAL P" )L%$S

Khilai had to e4ecute orders for shipment of rails to ran, $outh Iorea and +alaysia. Kecause of technical limitations, %our!ela plant is unable to substitute aluminum of zinc for the production of galvanized sheet apart from source internal technical problemsM our technology in the field of steel production is not a developed one when compared to other advanced countries.
GOVERNMENT CONTROL AND PRICING POLICY
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$ince &'*&, ndia steel and iron industry was almost completely state regulated. Koth prices and distribution of steel were under control of government. The 9ovt. decided to remove statutory control over the price and distribution of all, but a few categories with effect from &st march ,5, &'5* the 9ovt. supervise the steel and iron inducted according to the recommendation of %a6a committee. Kut %a6 committee in fi4ing the steel price didnCt regulate the price of raw materials. $teel occupies the foremost place amongst the materials in use today and pervades all wal!s of life. All the !ey discoveries of the human genius, for instance, steam engine, railway, means of communication and connection, auto mobile, aero plane and computers, are in one way or other, fastened together with steel and with its sagacious and multifarious application. $teel is versatile material with multitude of useful properties, ma!ing it indispensable for furthering and achieving continual growth of the economy-be it construction, manufacturing, infrastructure or consumables. The level of steel consumption has long been regarded as an inde4 of industrialization and economic maturity attained by a country. Ieeping in view the importance of steel, the fallowing integrated steel plants with foreign collaborations were set up in the public sector in the post-independence era. STEEL PLANT &. 3urgapur steel plant ,. Khilai steel plant ). Ko!aro steel plant *. %our!ela steel plant FOREIGN COLLABORATION Kritish <rstwhile #$$% <rstwhile #$$% 9erman
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COMPANY PROFILE
INTRODUCTION:
To meet the growing domestic needs of steel, government of ndia decided to set up an integrated steel plant at 1isa!hapatnam. An agreement was signed with erstwhile #$$% in &'(' for co-operation in setting up ).* +t integrated steel plant at 1isa!hapatnam. The foundation stone for the plant was laid by the then prime minister on ,/th Jan C(&
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The pro6ect was estimated to cost %s. )-'(.,- >rs based on prices as on * th quarter of &'-&. 2owever, on completion of construction and commissioning of the whole plant in &'',, the cost escalated to around -.// >r. #nli!e other integrated steel plants in ndia, 1isa!hapatnam $teel 0lant is one of the most modern steel plants in the country. The plant was dedicated to the nation on &st augustC &'', by the 0rime +inister, $ri. 0.1.Narasimha %ao. New technology, large scale computerization and automation etc., are incorporated in the plant. To operate the plant at international levels and attain such labor productivity, the organizational man power has been rationalized. The plant has a capacity of producing )./ +t of liquid steel and ,.5.5 +t of saleable steel.
VSP TECHNOLOGY: STATE'OF'THE'ART

(m tall co!e oven batteries with co!e dry quenching. Kiggest Klast Aurnaces in the country
Kell less top charging system in blast Aurnance.
&//H slag granulation at the KA cast house.
$uppressed combustion " 83 gas recovery system.
&//H continuous casting of liquid steel.
FTemporeG and F$telmorG cooling process in 8+++ 7 W%+.
<4tensive waste heat recovery systems.
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>omprehensive pollution control measures.
MAJOR SOURCES OF RAW MATERIALS

ron ore lumps 7 fines KA 8ime $tone $+$ 8ime $tone KA 3olomite $+$ 3olomite +anganese @re Koiler >oal >o!ing >oal Water $upply 0ower $upply Kailadilla, +.0 Jaggayyapeta, A.0 Jaisalmer, %a6asthan 3ubai +adharam, A.0 >hipuripalli, A.0 Talcher, @rissa Australia ?eluru canal, Andhra 0radesh >aptive power plant
MAJOR UNITS AT VSP

DEPARTMENTS >@I< @1<N$ $ NT<% 08ANT K8A$T A#%NA>< $T<<8 $2@0 8+++ W%+ ++$+ (&/ -./ -./ ANNUAL CAPACITY89 ,,,5& .,,.5 ),*// T: ) Katteries each of 5( ovens and ( +ts height , sinter machines of )&, $qm grate area each , Aurnaces of ),// cu m volume each ) 83 >onverters each of &./ >um. 1olume and si4 * strand bloom casters * $tand finishing +ill , 4 &/ stand finishing mill 5 $tand finishing +ill UNITS 83. MT STAGE:
+<8T ),///
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MAIN PRODUCTS OF VSP

S+55( P-o670+3 Angles Killets >hannels Keams $quares Alats %ounds %e Kars Wire rods B1 P-o670+3 Nut >o!e >o!e dust >oal Tar Anthracene @il 20 Naphthalene Kenzene Toluene Nylene Wash @il
MISSION:
To attain &/ million tones liquid steel capacity through technological up-gradation, operational efficiency and e4pansion, to produce steel at international standards of cost of quality, and to meet the aspirations of the sta!eholders.
VISION:
To be a continuously growing world-class company.
#% S'ALL:
2arness our growth potential and sustain profitable growth.
3eliver high quality and cost competitive products and be the first choice of customers.
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To create an inspiring wor! environment to unleash the creative energy of people.
Achieve e4cellence in enterprise management.
Ke a respected corporate citizen, ensure clean and green environment and develop vibrant communities around.
OBJECTIVES:
Towards growth " <4pand the plant capacity to( +T by ,/&&-,/&, with the mission to attain &/./ +T capacities in two subsequent phases. Towards profitability " Achieve net profits from ,//,-,//) with special emphasis on enhancement of production of value added steels and cost reduction. Towards employees " +a!e % N8 the employer of choice. #pgrade the s!ills and efficiencies of employees through training and development and maintain high levels of motivation and satisfaction. Towards customers " 0romote branding of products for quality and customer preference through customer relations management Towards suppliers " 3evelop a reliable and strong supplier base and ensure effective supply chain. Towards quality " 0romote quality movement in all functions of the company through quality management system.
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Towards technology up gradation and productivity " >ontinuously upgrade the technology and practice benchmar!ing to achieve international efficiency levels. Adopt latest developments in information and communication technology
Towards !nowledge management " Kecome a !nowledge based and !nowledge sharing company.
Towards safety, environment and society " >ontinue efforts towards safety of employees, conservation of environment and be a good corporate citizen.
CORE VALUES:
>ommitment >ustomer satisfaction >ontinuous improvement >oncern of environment >reativity and innovation
;UALITY POLICY:
We, at 1isa!hapatnam $teel 0lant, are committed to meet the needs and e4pectations of our customers and other interested parties. To accomplish this, we will $upply quality goods and services to customersC delight.
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Achieve quality of the products by following systematic approach through planning, documented procedure and timely review of quality ob6ectives. >ontinuously improve the quality of all materials, processes and products. +aintain an enabling environment which encourages team wor! and active involvement of all employees with their involvement.
HR POLICY:
We, at 1isa!hapatnam steel plant, believe that our employees are the most important resources. To realize the full potential of employees, the company is committed to; 0rovide wor! environment that ma!es the employees committed and motivated for ma4imizing productivity. <stablish systems for maintaining transparency, fairness and equality in dealing with employees. <mpower employees for enhancing commitment, responsibility and
accountability. <ncourage team wor!, creativity, innovativeness and high achievement orientation. 0rovide growth and opportunities for developing s!ill and !nowledge.
<nsure functioning of effective communication channels with employees.
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MAR<ETING NETWOR< OF VISA<HAPATNAM STEEL PLANT:

The products are being sold through ). mar!eting centers all over the country with four stoc! yards at +umbai, Iol!ata, >hennai and 2yderabad. And in other places, consignment agencies have been contracted.
POLLUTION CONTROL AND ENVIRONMENTAL PROTECTION:

<laborate measures have been adapted to combat air and water pollution in 1isa!hapatnam steel plant. n order to be eco friendly 1isa!hapatnam steel plant has planted more than ) million trees in area of ). square !ilometers and incorporated various technologies at a cost of %s.*5/ crores and control measures.
ACHIEVEMENTS AND AWARDS OF VSP

The efforts of 1$0 have been recognized in various forms. $ome of the ma6or awards received by 1$0 are in the area of energy conservation, environment protection, safety, :uality, :uality circles, %a6bhasha, +@#, sports related awards and a number of awards at the individual level. $ome of the important awards received by 1$0 are indicated below $@ '//, for $+$ and all the down stream units " a unique distinction in the ndian steel industry. ndira 0riya 3arshini 1rish!a +itra Award; &'',-')
Nehru +emorial National Award for 0ollution >ontrol. &'',-') 7 &'')-'*.
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<<0> <4port <4cellence Award; &''*-'.. > D$outhern %egionE <nergy conservation Award; &''.-'5. 9olden 0eacoc! D&st 0rizeE FNational :uality Award-'5G + in the National :uality >ompetition &''5. $teel +inisters Trophy for FKest $afety 0erformance " &''5G. $elected for FWorld :uality >ommitment Award- &''(G of JLKAN, $pain. 9old star award for e4cellent performance in 0roductivity. #dyog e4cellence gold medal award for e4cellence in $teel industry. <4cellence award for outstanding performance in 0roductivity +anagement, :uality and innovation. spat $ura!sha 0uras!ar DAirst 0rizeE for longest Accident free period " &''&-'*.
Kest 8abor +anagement Award from 9overnment of A0. $>@0< Award for best turnaround for ,//&. <nvironment <4cellence Award from 9reentech Aoundation for energy conservation in ,//,. Kest enterprise award from $>@0<, W 0$ for ,//&-/,, besides. Kest <nterprise Award from $>@0< for surpassing +@# targets " ,//)-/*
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$T3 Award for FKest 2% 0racticesG " ,//,
0rime +inisters Trophy for FKest ntegrated $teel 0lantG " ,//,-/) FWorld :uality >ommitment nternational $tar AwardG in the 9old category conferred by Kusiness nitiative 3irections, 0aris F@rganizational <4cellence AwardG for ,//)-/* conferred by N$$AN RINL 4)3 ,55* ,53+o=56 =.+4 35>5-)( *)+.o*)( )00o()653 .* +45 15)- ! 3.?*.2.0)*+ )@o*? +45@ ,5.*? : National <nergy >onservation Award for the 5th time in succession. National Award for <4cellence in Water +anagement. >WA Award for e4cellence in >ost +anagement. &' %
1iswa!harma %ashtriya 0uras!ar Award D 5 out of ), at the national levelE AA0>> best ndustrial 0roductivity Award N$AAN National Award for @rganizational <4cellence
Kest ><@ Award The above awards at local regional and national level competitions in the area of quality circles and suggestion schemes etc.
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Total quality, latest technology, sophisticated equipment, up to date !nowledge, high s!ills, cost consciousness, production with less cost and customer satisfaction have become the hallmar! of 1$0.
STATISTICAL INFORMATION
PRODUCTION PERFORMANCE 81 TONNES: L),oHo+ S(.No Y5)M5+)( & , ) * . 5 ( ,///-,//& ,//&-,//, ,//,-,//) ,//)-,//* ,//*-,//. ,//.-,//5 ,//5-,//( ,//(-,//,.&/ ,'*) )&5. )*-. )'*& */.. )',/ *&.) S+55( 8To*53 B15)-: ,,,. ,5.5 ,'/' )/-) )).5 )./).5/ )5/) ,&') ,)-, ,./( ,(.( )/.5 )&5' )&() ),)( &5& &', ,&& ,,,.) ,5, ,5. ,-, L.A7.6 S)(5),(5 S+55( P-o670+.>.+1
COMMERCIAL PERFORMANCE 8RUPEES IN CRORES:

S.No Y5)S)(53 O>5& , ) * ,//&-,//, ,//,-,//) ,//)-,//* ,//*-,//. ),/)( ),*)5 *,/-& .,/.' T7-* Do@53+.0 S)(53 ,,5(( ),&,, ),(&/ *,*)) )5/ )&* )(& 5,5 EC/o-+3
- ,5 -
. 5 (
,//.-,//5 ,//5-,//( ,//(-,//-
5,&(* -,&-& -,*5'
.,*/5 (,')) -,/,5
(5,***)
FINANCIAL PERFORMANCE 8RUPEES IN CRORES:
S.No & , ) * . 5 ( -
Y5),///-,//& ,//&-,//, ,//,-,//) ,//)-,//* ,//*-,//. ,//.-,//5 ,//5-,//( ,//(-,//-
G-o33 M)-?.* &. ,., ./* 5'/ &/*' ,/() ),(& ,)-)
C)34 P-o2.+ - )*5 -&)/ &.) *// '&. ,/,* ),5/ ,)..
N5+ P-o2.+ -.5, -,'& -(. .,& &.*( ,//&,.&
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EDPANSION PLAN:
C)/)0.+1 8MT: P-535*+ *.// ..,5 ).(/ F7+7-5 5../ -../ 5.)/
P-o670+ 2ot +etal >harge $inter 8iquid $teel
A66.+.o*)( F)0.(.+.53 5*>.3)?56 New KA with )-// >um >apacity New $inter 0lant of *// $q.+ area $+$-, with Two ./ >u+ >onverters, Two 5 $td Killet >asters 7 @ne 5 std %ound >aster
$aleable $teel Wire %oad Kars 7 $tructural
).)* &./. &.'.
..(, &.5. ).*/
-New W%+ of 5//,///T Annum New $K+ of (./,/// TOAnnum New $+ of (//,/// TOAnnum
$eamless 0ipes
/.)/
$eamless
Tube
plant
of
)//,///
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TOAnnum
THEORETICAL FRAME WOR< OF PERFORMANCE APPRAISAL SYSTEM

INTRODUCTION:
0erformance appraisal is wide used in the society. The parent evaluates the behavior of their children, teacher evaluates their student and employers evaluate their employees. 2owever, formal evaluation of employees is believed to have been adopted for the first time during Airst World War. The systematic performance appraisal was quite prominent in the recent years. >redit goes to Walter 3ill $cott for Fsystematic performance appraisal technique F of man-man rating system Dor merit ratingE . t was used for evaluating military officers .@nce the employee has been selected, trained the motivated, he is then appraised for his performance. 0erformance appraisal is the step where the management finds out how effective it has been at hiring and placing employees if any problems are identified, steps are ta!en to communicated to employee and to remedy them. A performance appraisal is a process of
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evaluating the performance and qualification of employee according to 6ob and its requirement. t is also !nown as the process of estimating and 6udging the value, e4cellence. :ualities of status of some ob6ect person or things. ndividually and collectively, it is the part of all other staffing process, li!e recruitment, selection, placement, etc.
TRENDS IN PERFORMANCE APPRAISAL:

I+5@ Terminology 0urpose Fo-@5- E@/4)3.3 +erit-rating 3etermining qualification of P-535*+ Fo073 0erformance appraisal wage 3evelopment of the individual, improved. Aor managerial and technical
increase, 0romotion, transfer, lay off. Application Aor ran! and file wor!ers
personnel. Aactors rates 0ersonal traits 0erformance, accomplishments. Techniques %ating scales with emphasis upon +utual scores goal-setting, critical results or
incidents, group appraisal.
CONCEPT OF PERFORMANCE APPRAISAL:

0erformance evaluation or performance appraisal is the process of assessing performance and progress of employee or of a group of employee on a given 6ob and his
- )/ -
potential for future development. n concept of all formal procedure used wor!ing organization to evaluate personality, contribution and potential of employees.
*%!&(&T& (:
0erformance evaluation or performance appraisal is the process of assessing the performance and progress of an employee or of a group of employees on a given 6ob and his potential for future development.
! "$AL *%!&(&T& (,
F t is the systematic evaluation of the individual with respect to hisOher performance on the 6ob and hisOher potential for development.G
ACC "*&(+ T !L&PP ,

F0erformance Appraisal is the systematic, periodic and an impartial rating of an employeeCs e4cellence in matters pertaining to his present 6ob and his potential for a better 6ob.G
CONTENT OF PERFORMANCE APPRISAL:

<very organization has to decide upon the content to be appraised before the programme is approved. 9enerally, content to be appraised may be in the form of
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contribution to organizational ob6ectives DmeasuresE li!e production, cost saving, return on capital, etc. other measures are based on; i. ii. Kehavior which measure observable physical actions, movements, @b6ectives which measure 6ob related results li!e amount of deposits mobilized and , iii. Traits which are measured in terms of personal characteristics observable in employeeCs 6ob activities. >ontent to be apprised may vary with the purpose of appraisal and type and level of employees.
CONTENTS TO BE APPRAISED FOR AN OFFICERS JOB:

&. %egularity of Attendance ,. $elf <4pression; Written and @ral ). Ability to Wor! with @thers *. 8eader ship $tyles and Abilities .. nitiative
5. Technical $!ill (. Technical Ability O Inowledge -. Ability to 9rasp new Things '. Ability to %eason
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&/. @riginality and %esourcefulness &&. >reative $!ills &,. Area of nterest &). Area of $uitability &*. Judgment $!ills &.. ntegrity &5. >apability for Assuming %esponsibility &(. 8evel of Acceptance by $ubordinates &-. 2onesty and $incerity &'. Thoroughness in Job and @rganizational Inowledge ,/. Inowledge of $ystems and 0rocedures ,&. :uality of $uggestions @ffered for mprovement
ORGANISATION DEVELOPMENT:
The function includes research to ascertain the psychological health of the organization. This is generally accomplished by means of periodic employee surveys. <fforts are made to improve organizational health through various means in order to maintain a psychological climate that is conductive to productivity. The organizational development or systems e4perts also help any department or unit in the company that has problems such as absenteeism, low resistance to change.
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REWARDS:
%ewarding employeeCs performance and behavior is important part of 2%3. Appropriate rewards not only recognize and motivate employees, but also communicate the organization value to the employees. n 2%3 systems, innovations and use of capabilities are rewarded in order to encourage the acquisition and application, newsletter announcements, increase in salary bonuses, special privileges and desired training rewards may be given to individuals as well as to teams, departments, main and other units within the organization.
EMPLOYEE WELFARE AND ;UALITY OF WOR< LIFE:

<mployees at lower in the organization usually perform relatively monotonous tas!s and have fewer opportunities for promotion or change. This is particularly true in developing countries. n order to maintain their wor! commitment and motivation, the organization must provide some welfare benefits such as medical insurance, disability insurance, holidays and vacation. :uality of wor! life programs generally focus on the environment with in the organization includes basic physical amenities such as food and beverage facilities. %ecreation and aesthetic and psychological and motivational factors such as fle4ible wor! hours, freedom to suggest change or improvements, challenging wor! and varying degree of autonomy.
THE MAIN CHARACTERISTIC OF PERFORMANCE APPRAISAL IS AS FOLLOWS:
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&. 0erformance appraisal is the process consisting of series of steps. ,. t is the systematic e4amination of employeeCs strength and wea!ness in terms of 6obs. ). 0erformance appraisal is the scientific or ob6ective study. Aormal procedure is used in the study the same approach is adopted for all 6ob holders for that result is comparable. *. t is an organizing or continuous process where in the valuation is arranged periodically according to a definite plan.
OBJECTIVES OF PERFORMANCE APPRAISAL:

The main purposes of performance appraisal are as follows; &. To provide a valid data base for personnel decision concerning placements, pay, promotion, transfer, punishment, etc. ,. To diagnosis the strength and wea!ness of individuals so as to identify further training needs. ). To provide coaching, counseling, career planning and motivation to subordinates. *. To develop positive, superior-subordinate relations and there by reduce grievances. .. To facilitate research in personnel management.
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5. To test the effectiveness of the recruitment, selection, placement and induction program. Thus, performance appraisal aims at both 6udgmental and developmental efforts.
USES:
&. t provides valuable information for personnel decisions such as pay increases, promotions, etc. ,. t helps to 6udge the effectiveness of recruitment, selection, placement and orientation system of the organization. ). *. t is useful in analyzing training and development needs. t can be used to improve performance thought appropriate feedbac!, wor!ing and counseling to employees. .. t facilitates 2uman %esource 0lanning, career planning and succession planning. 5. A competitive sprit is created and employees are motivated to improve their performance.
PROCESS OF PERFORMANCE APPRAISAL:

<stablishing performance standards " the appraisal process begins with the setting up of criteria to be used for appraising the performance of employees. The criteria are specified with the help of 6ob analysis, which reveals the contents of 6ob. This criteria should be clear, ob6ective and in writing.
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>ommunicating the standards " the standards are conveyed to the employees and the evaluators. A feedbac! regarding the standards should be obtained from the evaluators and the employees for revision or modification.
+easuring performance " this requires choosing the right technique of measurement, identifying the internal and e4ternal factors influencing performance and collecting information on results achieved.
>omparing the actual with the standards " actual performance is compared with the predetermined performance standards. $uch comparison will reveal the deviation, which may be positive or negative.
3iscussing the appraisal " The results of the appraisal are communicated to and discussed with the employees. Along with the deviations, the reason behind them are also analyzed and discussed. $uch discussion will enable the employee to !now his wea!nesses and strengths.
Ta!ing corrective actions " through mutual discussions with employees, the step required to improve performance are identified and initiated. Training, coaching, counseling, etc., are e4amples of corrective actions that help to improve performance.
<EY ELEMENTS OF PERFORMANCE APPRAISAL SYSTEMS
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2uman 0erformanc e
0erformance Appraisal 0erformance +easures 0erformance " %elated $tandards
<mployee Aeedbac!
2uman %esource 3ecisions
<mployee %ecords
METHODS OF PERFORMANCE APPRAISAL:

$everal methods and techniques are used for evaluating employee performance. These may be classified in to Traditional and +odern methods.
TRADITIONAL METHODS:
R)*E.*? M5+4o6: n this technique, evaluator assigns relative ran!s to all employees in the same wor! unit doing the same 6ob. <mployees are ran!ed from the best to the poorest on the basis of overall performance. The relative passion of an employee is reflected in the numerical ran!. t is one of the simplest methods. t is time saving and comparative evaluation technique of appraisal. M)*'+o'@)* 0o@/)-.3o* @5+4o6: n this method, certain factors are selected for the purpose of analysis and the rater for each factor designs a scale. A scale of
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man is also created for each selected for each factor. Then each man to be rated is compared with the man in the scale, and certain scores are awarded to him. n other words, a whole man is compared to a F!ey manG in respect of one factor at a time. This method is used in 6ob evaluation and is !nown as the factor comparison method. P).-56 0o@/)-.3o* @5+4o6 - This is a modified form of man to man ran!ing. 2erein, each employee is compared with all others in pairs on at a time. The number of times an employee is 6udged better then other determines his ran!. >omparison is made on the basis of overall performance. Fo-056 6.3+-.,7+.o* @5+4o6 - n these techniques the rater appraises an employee according to a pre-determined distribution scale. t is assumed that it is desirable to rate only two factors by this method that is Job performance and promotability. Aor this purpose a five po!ing performance scale is used without any descriptive statement7 employees are placed between two e4tremes of good and bad performance. G-)/4.0 -)+.*? 30)(53 @5+4o6 - t is a numerical scale indicating different degrees of a particular train. The rater is given a printed form for each employee to be rated. The form contains several characteristics relating to the personality and performance of employee. ntelligence, attitude, quality of world, leadership
s!ills 6udgment, etc. are some use characteristics. This method is widely used as it is easy to understand. t allows a statistical tabulation of scores and, a ready comparison of scores among the employees is possible. The approach is multi-
- )' -
dimensional as several significant dimensions of the 6ob can be considered in evaluation. C-.+.0)( .*0.65*+ @5+4o6 - n this method the superior !eeps a written record or critical Deither good or badE events and how different employees behaved during such events. The rating of the employee depends on the positive or the negative behaviors during these events. These critical incidents are identified after through study of the 6ob and discussions with the staff. This method helps to avoid vague impressions and general remar!s as the rating is based on actual records of behavior. G-o7/ )//-).3)( @5+4o6 - #nder this method, a group of evaluators assess employees. This group consists of the immediate supervisors of the employee, other supervisors having close contact with the employerCs wor!, head of the department and a personnel e4pert. The group determines the standards of performance for the 6ob, measures actual performance of an employee, analysis the causes of poor performance and offers suggestions for improvement in future. G-)6.*? @5+4o6 - under this method, the rater considers certain factors, and mar!s them accordingly to a scale. The selected factor may be analytical ability, cooperation, dependability self-e4pression, 6ob !nowledge. They may be grades as BAC " outstanding, BKC- very good,C >C-goodOaverage, B3C-fair, B<C- poor. The actual performance of an employee is then compared with these grade definitions and he is allotted the grade which best described his performance.
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Fo-056 04o.05 D.3+-.,7+.o* @5+4o6 - n this method, the rating elements are several sets of pairCs phrases or ad6ectives relating to 6ob proficiency or personal qualification. The rater is as!ed to indicate which of the phrases is most and least descriptive of the employee.
C450E(.3+ @5+4o6 - n this method, series of questions are presented concerning an employeeCs behavior. 2ere rater does not evaluate employee performanceM he supplies reports about it and the personnel department does the final rating
F-55 E33)1 M5+4o6 ' n this method, the supervisor ma!es a free form, open-ended appraisal of an employee in his own words and puts down his impression about the employee. The description is always as factual and concrete as possible.
F.5(6 -5>.5= @5+4o6 ' n this method, a trainer employee from the personnel department interviews line supervisors to evaluate respective subordinates. The supervisor is required to give his opinion about the progress of his subordinates and his plan of action in cases requiring for consideration. The traditional methods given above focus on the traits of an employee than an his 6ob performance , n the absence of predefined performance criteria or standards , the personal bias or sub6ectivity of the evaluator affects the ratings . This approach caused the following responses;
The very nature of the appraisal system led to criticism.
>riticism e4ercised a negative impact on goal attainment.
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>riticism increased antagonism and defensiveness among employees resulting in inferior performance.
+anagers generally are not qualified to assess personality traits.
$ome managers discourage good performances by over emphasizing shortcomings and almost neglecting good wor!.
n order to overcome these wea!nesses some new techniques of appraisal have been developed.
performances
MODERN METHODS:
A33533@5*+3 05*+5- @5+4o6 ' An assessments center is a group employee drawn from different wor! units. These employees wor! together on assignments similar to the one they would be handlings when promoted. The most important feature of the assessments center is 6ob-related simulations. <valuators observe and ran! the performances of all participants. This group evaluates all employees are both individually and collectively by using simulations techniques li!e role- playing, business games and in-bas!et e4ercisesP <mployees are evaluated on the basis of 6ob related characteristics considered important for 6ob success. The evaluators prepare a summary report and feedbac! is administered on a face-to-face basis to the employees who as! for it. An assessment center generally measures interpersonal s!ills, communicating ability to plan and organize, etc. Assessments centers are not only methods of appraisal but help to determine training and development needs of employees and provide data for human resource planning.
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<stablish 9oals Aor 0rogramme @btain Top +anagement >ommitment
3evelop 0olicies for Aeeding Kac! 3ata 3esign physical Aacilities >onduct 0rogramme
3o 3etailed Job Analysis
$elect <4ercises and 0articipants 3esign Assessor Trainings 0rogramme Train Assessors
3efine 3imensions to be assessed
0rovide Aeed Kac!
<valuate 0articipants and >entre Against Job $uccess >riteria
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ASSESSMENTS CENTER METHOD

H7@)* -53o7-05 )00o7*+.*? @5+4o6 - 2uman resource are a valuable asset for any organization. This asset can be valued in terms of money. When competent and well-trained employees leave an organization the human asset ids decreased and vice versa. #nder this method performance is 6udged in terms of costs and contributions of employees. >osts of human resources consist of e4penditure on human resource planning, recruitment, selection, induction, training, compensation, etc. >ontribution of human resources is the money value of labor productivity or value added by human resources. 3ifference between cost and contribution will reflect the performance of employees. This method is still in the transitory stage and is, therefore, not popular at present. B54)>.o-)( A*04o-56 R)+.*? S0)(53 8BARS: - This method combines graphic rating with critical incidents method. KA%$ are descriptions of various degrees of behavior relating to specific performance dimensions. >ritical areas of 6ob
performance and the most effective behavior for getting results are determined in advance. The rater records the observable 6ob behavior of an employee and
compares these observations with KA%$. n this way an employeeCs actual behavior is 6udged against the desired behavior. This steps involved are ; Co((50+ 0-.+.0)( .*0.65*+3 - 0ersons with !nowledge of the identify 6ob to be appraised describe specific e4amples of both effective and ineffective 6ob behaviors.
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I65*+.21 /5-2o-@)*05 6.@5*3.o*3 - The persons then cluster the behavioral incidents into a smaller set Dusually .-&/E of performance dimensions.
R5+-)*3()+5 +45 .*0.65*+3 ' Another group of !nowledgeable persons assign each incident to the dimension that it best describes. ncidents for which there is less
than (.H agreement with the first group are not retranslated. A33.?* 30)(53 +o .*0.65*+3 ' The second group rates each incident on a ( or ' point scale. %ating is done on the basis of how well the behavior described in the incident represents the performance on the appropriate dimensions. +eans
DaverageE and standards deviations are then calculated for the scale values assigned to each incident. D5>5(o/ 2.*)( .*3+-7@5*+ ' A subset of the incidents that meets both the retranslation and standard deviation criteria is used as a behavioral anchor for the final performance dimensions. A final KA%$ instrument typically comprises a series of vertical scales that are endorsed by the include incidents. <ach incident is positioned on the scale according to its mean value. 3% 65?-553 /5-2o-@)*05 )//-).3)( " This is a new concept in performance appraisal, where the feedbac! is collected from all around "the employee, the superior, the subordinates, the peer group, and the customers. The evaluation is very comprehensive in terms of the employeeCs s!ills, abilities, styles, and 6obrelated competencies. This system has the following advantages; aE 2igher validity and reliability of the evaluation.
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bE
$elf evaluation by the employees gets compared with the perception of others.
cE
2elps in ma4imizing employee potential in the face of challenges.
ADVANTAGES OF BARS:
%atings are li!ely to be accurate because these are done by e4perts.
The method is more reliable and valid as it is 6ob specific and identified observable and measurable behavior.
%atings are li!ely to be more acceptable due to employee participation
The use of critical incidents is useful in providing feedbac! to the employee being rated.
LIMITATIONS OF THE BARS:

t is very time consuming and e4pensive to develop KA%$ for every 6ob.
Kehaviors used are more activity oriented than results oriented. A//-).3)( ,1 -537(+3 o- MBO 8M)*)?5@5*+ ,1 O,F50+.>53: G The concept of management by ob6ectives was developed by 0eter 3ruc!er in &'.*. $ince then +K@ has become an effective and operational technique of performance appraisal and a powerful philosophy of managing. +K@ has been defined as Fa process whereby the superior and subordinate
managers of an organization 6ointly identify its common goal, define each
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individualCs ma6or areas of responsibility in terms of results e4pected of him and use these measures as guides for operating the unit and assessing the contributions of each its members.G n other words, +K@ involves appraisal of performance against clear, time bound and mutually agreed 6ob goals.
PROCESS OF MBO:
S5+ o-?)*.H)+.o* ?o)(3 - 9oals of the organization in !ey areas of performance are laid down. These goals are defined in clear, precise and measurable terms. A through analysis of internal and e4ternal environment of the organization is made to set these goals. D52.*.*? /5-2o-@)*05 +)-?5+3 -@n the basis of organizational goals, performance standards for each employee are defined. <very subordinate
writes down his own performance goals, which are wor! related, and careeroriented. 2is manager also writes down the goals he thin!s the subordinate should strive for. The two then discuss them, reach an agreement and put the agreed goals in writing. Thus, employees at all levels are involved in goal setting. The goals are periodically reviewed and revised to !eep them fle4ible and up-to-date. P5-2o-@)*05 -5>.5=3 -Arequent performance reviews meetings between manager and subordinate are held. n these meeting progress is assessed,
wea!nesses and constrains are identified and steps to be ta!en to improve performance are decided. $ubordinates actively participate in this process. This leads to self-control by the employee.
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F556,)0E - After every performance review feedbac! on performance is communicated to the employee so that he can regulate and improve upon his own performance. @n the basis of performance review rewards are decided. New goals and performance targets are determined for the ne4t period.
ADVANTAGES:
<nds "means chain %ole clarity @b6ective appraisal +otivation and commitment +anagement development >o-ordination 8 + TAT @N$; 3ifficulty in goal setting 0roblem of participation 8ac! of understanding Time-consuming and e4pensive nfle4ibility
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SHORT COMINGS OF PERFORMANCE APPRAISAL:

The ideal approach to performance evaluation is that in which the evaluator is free from personal biases, pre6udices, and idiosyncrasies. This is because when an evaluation is ob6ective, it minimizes the dysfunctional behavioral of the evaluator, which may be detrimental to the achievement of organizational goals. The factors which impede ob6ective evaluations are; T45 4)(o 52250+ ' The halo effect is a Ftendency to let the assessment of an individual
one trait influence the evaluation of that person on other specific traits.G There is this effect in appraisal when the appraiser assigns the same rating to all traits regardless of an employeeCs actual performance on these traits. The halo effect refers to the tendency to rate an individual consistently high or low or average on the various traits, depending upon whether the raterCs overall impression of the individual is favorable or not. This means that the halo effect allows one characteristic, or occurrence Deither good or badE to influence the rating of all performance factors. The halo effect problem can be alleviated by; 0roviding a training programmer to the evaluators. %estructuring the questions by requiring the evaluator to consider each question
independently. L5*.5*01 o- 3+-.0+*533 +5*65*01 ' <very evaluator has hiss own value system which
acts as a standard against which he ma!es his appraisals. %elative to the true or actual performance an individual e4hibits, some supervisors have a tendency to be liberal in their
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rating, that is they consistently assign Bhigh valuesC to their employees, while at other times they may have a tendency to assign consistently Blow ratingC. The former tendency is !nown as Bpositive leniency errorC, while the latter as Bnegative leniency errorC. Koth these trends usually arise from varying standards of
performance observed by supervisors and from different interpretations of what they evaluate in employee performance. The tendency can be avoided by holding meeting or training sessions for raters so that they may understand what is required of them in rating. T45 05*+-)( +5*65*01 /-o,(5@ ' t is the most commonly found error. t assigns
Faverage ratingsG to all the employees with a view to avoiding commitment or involvementM or when the rater is in doubt or has inadequate information or lac! of !nowledge about the behavior of the employee, or when he does not have much time at his disposal. The ran!ing tools discussed earlier are aimed at avoiding this problem. S.@.()-.+1 5--o- ' This type of error occurs when the evaluator rates other people in
the same way he perceives himself. This error also washes out if the same evaluator appraises all the people in the organization. M.305(()*5o73 ,.)353 ' B.)3 against employees on ground of se4, race religion or
position is also a common error in rating. Aor e4ample, a higher rating may be given to a senior employee. The rater may also be influenced by organizational influence and give higher rating to those holding higher positions. So0.)( 6.225-5*+.)+.o* ' %ating is sometimes impeded by the evaluatorCs style of
behavior. 0ious has classified raters as Bhigh differentiationsG- that is using most of the scaleM or Flow differentiatorsG-that is, using a limited range of the scale. F8ow
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differentiators tend to ignore or suppress differences, perceiving the universe as more uniform than it really is. 2igh differentiators, on the other hand, tend to utilize all available information to the utmost e4tent and thus are better able to perceptually deny anomalies and contradictions than low differentiators.G $ocial differentiation ma!es evaluations using BtraitC criteria unreliable. S/.(( O>5- E2250+ ' This type of error occurs when past performance rating influences
the current rating.
STEPS FOR MA<ING APPRAISAL SUCCESSFUL

<4istence of an atmosphere of confidence and trust.
The results of performance rather than personality traits should be given due weight.
The supervisor should analyze the strengths and wea!nesses of the employee and advise him.
The appraisal programmed should be less time-consuming and less costly
The results of appraisal should be immediately communicated to the employee.
A post appraisal interview should be arranged.
Training can be used to improve the standards of performance appraisal.
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The right appraisal tools should be chosen to minimize arising problem.
PERFORMANCE PLANT C $P (%(TS:

#'%( T APP"A&S%:
APPRAISAL
AT
VISA<HAPATNAM
STEEL
0erformance appraisal across all levels at 1isa!hapatnam steel plant 8imited is conducted twice in a year. The 2uman resource department sends the appraisal forms to the concerned departments after duly filling in the staff details.
#' S' -L* APP"A&S%:

The immediate superior of the employee not below the Assistant +anager cadre shall be the %eporting @fficer. n case the employee is directly wor!ing under the supervision of any officer higher.
P" C%*-"%:
The 2uman %esource department prepares appraisal forms for each and every category of employee and at the start of the appraisal periodM it sends these forms to the concerned departments after filling in the necessary details of the employee to be appraised which is called Bbac!ground informationC. The staff should have wor!ed at least for a period of 5 months to be appraised by an officer. n case the appraise reports to more than one %eporting officer in an appraisal
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year, on transfer, promotion etc., The personnel department would forward the appraisal forms to %eporting officers concerned for the period, the appraise reports to them.. The assessment an employee is primarily governed under a , - tier system that is assessment by the %eporting officer as well as by the %eviewing officer, where the assessment is sub6ect to concurrence of the >onsenting Authority, which will be final. The assessment done on the basis of certain attributes O factors which help in defining the 6ob requirements of a particular 6ob. #sually a * - point scale or a &/ - point scale for each factor is used for rating. @nce the reporting officer gives his rating and comments if any, the same shall be put to the reviewing officer who after careful scrutiny of the appraisal will pass his remar!s. After the %eviewing officerCs comments are given and duly signed by him, he can advice the reporting officer to discuss the appraisal with the employee or, in certain cases, may decide to discuss the appraisal with the employee himself but in the presence of the %eporting officer. The reporting officer after rating the employee on various attributes will give his remar!s, which are communicated, to the reviewing officer. 8ater these are discussed with the employee to !now his reaction. After the discussion with the employee, the reporting officers give his final remar!s and his suggestions for improvement of the employee performance. The reviewing officer for further comments later scrutinizes these. The complete appraisal report is then sent bac! to the personnel department in a confidential cover. The personnel department will then chec! the appraisal report for irregularities and any adverse entries against any of the employee made by the reporting
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officer will be communicated to the employee in a covering letter as!ing himOher to improve and a copy of the same will be placed in hisOher personal life.
OBJECTIVES OF PERFORMANCE APPRAISAL SYSTEM:

To appraise the individualCs performance on the wor! assigned to him and qualities he is e4pected to show on the 6ob in performing his tas!s as e4pected by the organization through his supervising officers and to assess the potential for higher responsibilities. To generate inputs for promotions, confirmations, placements, training and personnel and developmental decisions in respect of the individual so appraised. To assess the professional, managerial, behavior and other training and development needs and provide information to the personnelO2%3 department for the development decisions.
GUIDELINES FOR APPRAISERS:

The employee should be appraised for his present position. Judgment should be based on the entire review period 7 not on isolated incidents. $nap 6udgments should be avoided. <ach factor under considerations should be appraised independently without being influenced by other factors.
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t is advisable that the individual being assessed should compare with others of the same ran! employed on more or less similar type of wor!.
@ver " rating as well as under " rating diminishes the value of the assessment. %eason for given rating of the attribute should be well substantiated. A copy of adverse remar!s communicated to the employee should be attached to the appraisal form.
ABOUT THE FORMS: C (T%(T ! T'% ! "$S:

L KA>I9%@#N3 NA@%+AT @N of the employee to be filled in by the personnel department which contains&. Name ,. 3esignation ). 3ate of Joining *. 3epartment .. <mployee number 5. $pecial assignments (. :ualifications -. >ommendations '. 0unishments and warnings awarded during the year Dwith reasonsE.
LATTRIBUTES FOR PERFORMANCEBPOTENTIAL ASSESSMENT
- .. -
FOR OFFICERS:
0rofessional !nowledge and application >apacity to achieve results 3ependability Judgment and decision ma!ing >ommunication $!ills DWritten or oralE 8eadership 0lanning and organizing ability >o-operation and team spirit Adaptability 0ersonality.
! " T%C'(&CAL.( (/T%C'(&CAL STA!! 0C $$ ( ATT"&)-T%S1:

Jo, E*o=(56?5; Inowledge and understanding of 6ob assigned. ;7)(.+1 o2 =o-E; Thoroughness and accuracy of wor! done without mista!es, neatness and present ability should be considered. ;7)(.+1 o2 =o-E; Amount of output vis - a " vis the time ta!en.
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I*.+.)+.>5; $elf - starting ability, resourcefulness and the ability to inspire confidence should be considered.
Co*670+; Ability to get on with other fellow employees. R5?7()-.+1; 0unctuality and regularity of attendance. L5)65-34./: Ability to get wor! done by subordinates giving them clear guidance.
Co3+ 0o*30.o73*533; Ability to foresee the resource requirement for any tas! and complete assignments with minimum waste.
! " T%C'(&CAL STA!! (L2:

$afety >onsciousness: 2abits and wor! practices in respect of personal safety and safety of fellow employees. >are of tool and equipment; +anner in which tool and equipment handling is done ensuring better tool life and less maintenance and damage.
! " ( ( 3T%C'(&CAL STA!! (L2:

3ealing with others: Ability to appreciate others point of view and approach in dealing with customers, suppliers or any other outsiders in conformity with organizational requirement.
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RATING OF ATTRIBUTES
The common factors and the ratings under which the appraisal are made are as follows;
;UANTITY OF OUTPUT: <4tent of target fulfillment and completion of assigned tas!s. RATING &.-&) REASON @utput of wor! e4ceptionally high and above e4pectationsOtas!s assigned despite high degree of difficulty of tas!s. &,-&/ '.( 5-* Aulfillment of all tas!s O targets despite constraints Tas!s assigned generally met with moderate effort @utput below targetOe4pectation despite lac! of constraints. +oderate effort. )-& @utput far below e4pectation. TargetOtas!s not fulfilled. 8ow effort ;UALITY OF OUTPUT: 9eneral e4cellence of output, the e4tent of wor! free from errors. RATING REASON
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&..&) &,-&/ '-( 5-* ).&
<4cellent quality of output accurate in wor! under all conditions. 3oes a thorough and accurate 6ob 9enerally produces wor! of acceptable quality Wor! barely up to the mar! Wor!s consistently below required standards
COST CONTROL: Awareness of cost aspects in the 6ob. @ptimum utilization of available resources and reduction of wastes. RATING &/-' -.( 5.. *-) ,.& REASON Always ma!es optimum utilization of resources All assigned tas!s completed within the specific cost parameters 9enerally !eeps within cost parameters and time schedules. >onscious of the need to effect economy and manage time Wasteful in wor!. 8ac!s desire to complete assignments in time.
JOB <NOWLEDGE AND S<ILL: Inowledge pertaining to the area of wor! and related areas. RATING &/-' --( REASON <4cellent ability to anticipate future wor! needs ahead of time. 9ood !nowledge of his own 6ob and related areas
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5.. *.) ,.&
Inowledge adequate in own area Inowledge inadequate in own and related areas 0oor !nowledge. No motivation to learn
DISCIPLINE: Adherence to company policies and rules RATING &/.' -.( 5.. *.) ,.& REASON <4emplary behavior and conduct 9ood behavior and conduct 3iscipline is generally good >onduct and discipline within manageable limit 8ow in discipline
INITIATIVE: Ability to be self-reliant and move forward on a tas! without outside direction. RATING &/.' -.( REASON Totally self-reliant. A self starter 9ood initiative
- 5/ -
5.. *.) ,.&
9enerally shows good initiative Needs guidance, instructions and follow up Always requires to be told
COMMUNICATION: $!ill and desire to share available information with all concerned. RATING &/.' -.( 5.5 *.) ,.& REASON <4cellent clarity of thought and e4pression $hares information with all concerned 2as moderate s!ill and desire to share information @nly believes in downward communication 8ac!s both the s!ill and the will to communicate
MANAGEMENT OF HUMAN RESOURCES: <ffective control and utilization of sub ordinates, ensuring discipline, integrating employees into teams and motivating them for higher levels of performance. RATING . * REASON <4cellent control over and utilization of people 9ood utilization of people
- 5& -
) , &
0lays basically a controlling function 2as little control 2as no control over hisOher people.
DATA ANALYSIS AND INTERPRETATION

A $ample of ./ respondents was selected at sample from different departments li!eQ D%73, :AT3, 9neral Administrative, 2%3, Administrative, Tele come, etcE. A survey was conducted by way of questionnaire to find out whether the employees are satisfied with the e4isting system and their opinions on rated areas.
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The questionnaires consists of ,, questions to evaluate the performance of the employees in 1$0 and this questionnaire is submitted to all departmental e4ecutives in the organization and they ta!e ,/ minutes to fill the questionnaire After the filling of questionnaire , the analysis part of the study is started . The graphical representation is based on the responses to the answers submitted by the employees and these are analyzed in the percentage form . Ky !nowing the percentage , we can identify the performance of the
employee and to identify the way of thin!ing of employees . Ky this analysis we can determine the deficiencies in the organization . The responses was given by respondents were tabulated and a score sheet is prepared and graphically represented in the following study .
SUMMATED SCALES 8OR LI<ERT'TYPE SCALESE

$ummated scales Dor li!ert-type $calesE are developed by utilization of the item analysis approach wherein a particular item is evaluated on the basis of how well it discriminates between those persons whose total score is high and those whose score is low. Those items or statements that best meet this sort of discrimination test are included in the final instrument. Thus, summated scales consist of a number of statements which e4press either a favorable or unfavorable attitude towards the given ob6ect to which the respondent is as!ed to react. The respondent indicates his agreement or disagreement with each statement in the instrument. <ach response is given a numerical score, indicating its favorableness or unfavourableness, and the scores are totalled to measure the respondentCs attitude. n other
- 5) -
words, the overall score represents the respondentCs position on the continuum of favorable-unfavourableness towards an issue. +ost frequently used summated scales in the study of social attitudes follow the pattern devised by 8i!ert. Aor this reason they are often referred to as 8i!ert " type
scales. n a 8i!ert scale, the respondent is as!ed to respond to each of the statement in terms of several degrees, usually five degrees Dbut at times ) or ( may also be usedE of agreement or disagreement. Aor e4ample, when as!ed to e4press opinion whether one considers his 6ob quite pleasant, the respondent may respond in any one of the following ways; iE strongly agree iiE agree iiiE undecided ivE disagree D.pointE D* pointsE D) pointsE D, pointsE
vE $trongly disagree. D& pointE We find that these five points constitute the scale. At one e4treme of the scale there is strong agreement with the given statement and at the other, strong disagreement, and between them lie intermediate points. We may illustrate this as under; <ach point on the scale carries a score. %esponse indicating the least favorable degree of 6ob satisfaction is given the least score Dsay&E and the most favorable is given the instrument but are shown here 6ust to indicate the scoring pattern. The 8i!ert scaling technique, thus assigns a scale value to each of the five responses.
- 5* -
The same thing is done in respect of each and every statement in the instrument. This way the instrument yields a total score for each respondent, which would then measure the respondentCs favorableness towards the given point of view. f the instrument consists of, say )/ statements, the following score values would be revealing. )/ N . R &./ most favorable response )/ N ) R '/ )/ N & R )/ A neutral attitude most unfavorable attitude.
The scores for any individual would fall between )/ and &./. f scores happens to be above '/, it shows favorable opinion to the given point of view, a score of below '/ would mean unfavorable opinion and a score of e4actly '/ would be suggestive of a neutral attitude.
PROCEDURE:
The procedure for developing a 8i!ert " type scale is as follows; iE As a first step, the research collects a large number of statements s which are relevant to the attitude being studied and each of the statements e4press definite favorableness or unfavourableness to a particular point of view or the attitude and that the number of favorable and unfavorable statements is appro4imately equal. iiE After the statements have been gathered, a trail test should be administered to a number of sub6ects. n other words, a small group of people, from those who are going to be studied finally, are as!ed to indicate their response to each statement by
- 5. -
chec!ing one of the categories of agreement or disagreement using a five point scale as stated above. iiiE The response to various statement are scored in such a way that a response indicative of the most favorable attitude is given the highest score of . and that with the most unfavorable attitude is given the lowest score, say, of &. ivE Then the total score of each respondent is obtained by adding his scores that he received for separate statements. vE The ne4t step is to array these total scores and find out those statements which have a high discriminatory power. Aor this purpose, the researcher may select some part of the highest and the lowest total scores say the top ,. percent and the bottom ,. percent. These two e4treme groups are interpreted to represent the most favorable and the least favorable attitudes and are used as criterion group by which to evaluate individual statements. This way we determine which statements consistently correlate with low favorability and which with high favorability. viE @nly those statements that correlate with the total test should be retained in the final instrument and all others must be discarded.
ADVANTAGES:
The 8i!ert " type scale has several advantages. +ention may be made of the important ones.
- 55 -
iE
t is relatively easy to construct the 8i!erttype scale in comparison to Thurston " type scale because 8i!ert " type scale can be performed without a panel of 6udges.
iiE
8i!ert " type scale is considered more reliable because under it respondents answer each statement included in the instrument. As such it also provides more information and data than does the Thurstone "type scale.
iiiE
<ach statement, included in the 8i!ert " type scale, is given an empirical test for discriminating ability and as such, unli!e Thurstone " type scale, the 8i!erttype scale permits the use of statement that are not manifestly related Dto have a direct relationshipE to the attitude being studied.
ivE
8i!ert " type scale can easily be used in respondent-centered and stimuluscentered studies i.e., through it we can study how responses differ between people and how responses differ between stimuli.
vE
8i!ert " type scale ta!es much less time to construct, it is frequently reported in various research studies that there is high degree of correlation between 8i!ert " type scale and Thurstone " type scale.
LIMITATIONS;
There are several limitations of the 8i!ert " type scale as well. @ne important limitation is that, with this scale, we can simply e4amine whether respondents are more or less favorable to a topic, but we cannot tell how much more or less they are. There is no basis for belief that the five positions indicated on the scale are equally spaced. The interval between Fstrongly agreeG and FagreeG may not be equal to the interval between
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FagreeG and FundecidedG. This means that 8i!ert " type scale does not rise to a stature more than that of an ordinal scale. Whereas the designers of Thurstone scale claim the Thurstone scale to be an interval scale. @ne further disadvantage is that often the total score of an individual respondent has little clear meaning since a given total score can be secured by a variety of answer patterns. t is unli!ely that the respondent can validly react to a short statement on a printed form in the absence of real-life qualifying situations. +oreover, there Fremains a possibility that people may answer according to what they thin! they should feel rather than how they do feel. This particular wea!ness of the 8i!ert " type scale is met by using a cumulative scale which we shall ta!e up later in this chapter.
1: O/.*.o* o2 ,5.*? o2 )33o0.)+56 =.+4 V.3)E4)/)+*)@ S+55( P()*+ Table:4 S.No. &. ,. ). O/.*.o* ?es No To some <4tent R53/o*65*+3 )/ &, P5-05*+)?5 (5 / ,*
- 5- -
*.
None To+)(
/ ./
/ &//
+raphical "epresentation:
Associated with Visakhapatnam Steel Plant

80 70 60 50 40 30 20 10 0 Yes 0 No To some Extent 0 None 24 76
&nterpretation: Arom the above analysis have found that (,H of the respondents said yes about their happyness being associated with 1isa!hapatnam $teel 0lant and ,.H of the respondents opinion is to some <4tent. !: O/.*.o* -5?)-6.*? @).*+).*.*? 52250+.>5 /5-2o-@)*05 )//-).3)( 313+5@. Table:5 S.No. &. ,. ). *. O/.*.o* Agree $trongly Agree 3isagree >annot $ay R53/o*65*+3 )&& / & ./ P5-05*+)?5 (5 ,, / , &//
To+)( +raphical "epresentation:
- 5' -
Effective Performance Appraisal System

80 70 60 50 40 30 20 10 0 Agree Strongly Agree 0 Disagree 2 Cannot Say 22 76
&nterpretation: Arom the above analysis have found that (5H of the respondents agree to
organization is maintaining effective performance appraisal system, ,,H of the responedents strongly Agree and only ,H of the respondents cannot say about performance appraisal system. 3: P5-2o-@)*05 )//-).3)( 313+5@ 45(/3 .* )33533.*? 0o@/5+5*01 Table:6 S.No. &. ,. ). *. O/.*.o* Agree $trongly 3isagree 3isagree >annot $ay R53/o*65*+3 )5 * , ./ P5-05*+)?5 (, &5 * &//
- (/ -
Performance appraisal system helps in an asessing competency

80 70 60 50 40 30 20 10 0 Agree Strongly Disagree Disagree Cannot Say 16 8 4 72
&nterpretation: Arom the above analysis have found that )5H of the respondents agree to
performance appraisal system helps in an assessing competency, -H of the respondents strongly disagree, *H of the respondents disagree and remaining ,H of the respondents cannot say.
- (& -
#:
Ro(5 o2 P5-2o-@)*05 )//-).3)( 0-5)+.*? )* 52250+.>5 =o-E 5*>.-o*@5*+ )*6 0-5)+.*? /o3.+.>5 -5()+.o*34./.
Table:7 S.No. &. ,. ). *. O/.*.o* ?es No To some e4tent None R53/o*65*+3 && ) )5 / ./ P5-05*+)?5 ,, 5 (, / &//
Performance appraisal hop create positive relationship

80 70 60 50 40 30 20 10 0 72
22 6 Yes No To some extent 0 None
&nterpretation: Arom the above analysis have found that (,H of the respondents say to some e4tent about performance appraisal hop in creating an effective wor! environment and create positive relationship, ,,H of the respondents say ?es, @nly 5H of the respondents say no. &: R5)3o* 2o- (o= /5-2o-@)*05 675 +o ()0E o2 3E.((3.
- (, -
Table:8 S.No. &. ,. ). *. O/.*.o* Agree $trongly Agree >annot $ay 3isagree To+)( +raphical "epresentation: R53/o*65*+3 &* . )/ & ./ P5-05*+)?5 ,&/ 5/ , &//
You agree that low performance is due to lack of skill

70 60 50 40 30 20 10 0 Agree Strongly Agree Cannot Say Disagree 28 10 2 60
&nterpretation: Arom the above analysis have found that 5/H of the respondents cannot say about they agree that low performance is due to lac! of s!ills and ,-H of the respondents agree, &/H of the respondents strongly agree, and remaining ,H of the respondents disagree. %: P5-2o-@)*05 )//-).3)( 313+5@ 5*0o7-)?5 /5o/(5 +o /()* +45.- =o-E =5(( .* )6>)*05. Table:9
- () -
S.No. &. ,. ). *.
O/.*.o* ?es No To some e4tent None
R53/o*65*+3 ,* . ,/ & ./
P5-05*+)?5 *&/ */ , &//
Performance appraisal system encourage people to plan their work well in advance.
60 50 40 30 20 10 0 Yes No To some extent None 10 2 48 40
&nterpretation: Arom the above analysis have found that *-H of the respondents say yes to
performance appraisal system encourage people to plan their wor! well in advance, */H respondents say to some e4tent, &/H of the respondents say no and ,H of the respondents cannot say nothing.
- (* -
":
B53+ /5-3o* +o 0o*670+ /5-2o-@)*05 )//-).3)( 313+5@
Table:: S.No. &. ,. ). *. .. O/.*.o* $ub-ordinates Agents 0eer 2@3 R53/o*65*+3 & , , ,. ,/ ./ P5-05*+)?5 , * * ./ */ &//
Top +anager To+)( +raphical "epresentation:
Performance appraisal system encourage people to plan their work well in advance.
60 50 40 30 20 10 0 Yes No To some extent None 10 2 48 40
&nterpretation: Arom the above analysis have found that *-H of the respondents say yes to
performance appraisal system encourage people to plan their wor! well in advance, */H respondents say to some e4tent, &/H of the respondents say no and ,H of the respondents cannot say anything. 8: B53+ /5-2o-@)*05 )//-).3)( 313+5@
- (. -
Table:; S.No. &. ,. ). *. .. O/.*.o* ndividual appraisal $elf appraisal Team appraisal 0otential appraisal R53/o*65*+3 &( * 5 / ,) ./ P5-05*+)?5 ), &, / *5 &//
)5/ appraisal To+)( +raphical "epresentation:
Best performance appraisal sytem
32 46
n!i"i!#al a$$raisal Sel% a$$raisal Team a$$raisal &otential a$$raisal 360 a$$raisal
8 0 12
&nterpretation: Arom the above analysis have found that *5H of the respondents said that )5/ appraisal is the best performance appraisal system, ),H of the respondents said ndividual appraisal is best, -H of the respondents said $elf appraisal system is the best and remaining &,H of the respondents said Team appraisal best appraisal system. $: M)*)?5- 0)* ?5+ +45 =o-E 6o*5 ,1 +45 5@/(o15- =.+4o7+ /5-2o-@)*05 )//-).3)( 313+5@ Table:<
- (5 -
S.No. &. ,. ). *.
O/.*.o* Agree $trongly disagree >annot $ay 3isagree
R53/o*65*+3 &, &/ ,* * ./
P5-05*+)?5 ,* ,/ *&//
w ork done by the em ployer w ithout performance appraisal system
24 Agree Strongly !isagree Cannot Say
48
20
Disagree
&nterpretation: Arom the above analysis have found that *-H of the respondents cannot say, ,*H of the respondents said that +onthly Kasis, ,/H respondents strongly disagree, and remaining -H of the respondents disagree.
- (( -
1 : P5-2o-@)*05 A//-).3)( .3 -)+56 o* Table:4= S.No. &. ,. ). *. O/.*.o* +onthly basis :uarterly 2alf year Annually R53/o*65*+3 . . )* 5 ./ P5-05*+)?5 &/ &/ 5&, &//
iven !ating Performance Appraisal

80 70 60 50 40 30 20 10 0 'ont(ly )asis *#arterly +al% year Ann#ally 10 10 12 68
&nterpretation: Arom the above analysis have found that 5-H of the respondents opinion is 2alf year is the best rating to performance appraisal, &,H of the respondents opinion is Annually is best ,/H of the respondents opinion is monthly basis and quarterly is best.
- (- -
11: P5-2o-@)*05 )//-).3)( 2o-@3 ,)3.3 2o- /-o@o+.o*3 )*6 -5=)-6 313+5@. Table:44 S.No. &. ,. ). *. O/.*.o* Agree $trongly Agree 3isagree >annot $ay R53/o*65*+3 ,5 ( ( &/ ./ P5-05*+)?5 ., &* &* ,/ &//
superiors give feedback to their sub"ordinator with ade#uate care and concern
20 Agree 14 52 Strongly Agree Disagree Cannot Say 14
&nterpretation: Arom the above analysis have found that .,H of the respondents agree that superiors give feedbac! to their sub-ordinator with adequate care and concern, ,/H of the respondents cannot say anything, &*H of the respondents disagree and remaining &*H of the respondents strongly agree.
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1!: P5-2o-@)*05 )//-).3)( 313+5@ 2o-@3 /-o/5- ,)3.3 2o- @)E.*? 650.3.o*3 -5?)-6.*? /-o@o+.o*3 )*6 -5=)-63 313+5@. Table:45 S.No. &. ,. ). *. O/.*.o* ?es No To $ome <4tent None R53/o*65*+3 &, , )* , ./ P5-05*+)?5 ,* * 5* &//
performance appraisal system forms proper basis for making decisions regarding promotions and rewards system.
24 Yes 4 No To Some Extent None
68
&nterpretation: Arom the above analysis have found that )*H of the respondents to some e4tent, &,H of the respondent opinion is ?es, ,H of the respondents is said No and remaining ,H of the respondents none.
- -/ -
13: V.3)E4)/)+*)@ 3+55( /()*+ ?o ,1 @5-.+ o- 35*.o-.+1 =.+4 -53/50+ +o /-o@o+.o*3. Table:46 S.No. &. ,. ). *. O/.*.o* ?es No To $ome <4tent None R53/o*65*+3 &, , )* , ./ P5-05*+)?5 ,* * 5* &//
performance appraisal system forms proper basis for making decisions regarding promotions and rewards system.
24 Yes 4 No To Some Extent None
68
&nterpretation: Arom the above analysis have found that 5-H of the respondents opinion is to some
e4tent, ,*H of the respondents said yes, -H of the respondents said No and None about 0erformance appraisal system forms proper basis for ma!ing decisions regarding promotions and rewards system.
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1#: P5-2o-@)*05 )//-).3)( 52250+.*? +45 o-?)*.H)+.o* 65>5(o/@5*+. Table:47 S.No. &. ,. ). *. O/.*.o* To large e4tent To some e4tent To title e4tent None R53/o*65*+3 &, &* ,) & ./ P5-05*+)?5 ,* ,*5 , &//
Performance appraisal system effects the organi$ation development.

2 24 To large extent 46 To some extent To title extent None 28
&nterpretation: Arom the above analysis have found that *5H of the respondents to title e4tent about performance appraisal system effects the organization development, ,-H of the respondents To large e4tent, ,-H of the respondents to some e4tent, only ,H of the respondents none.
- -, -
1&: P5-2o-@)*05 )//-).3)( 313+5@ o2 V.3)E4)/)+*)@ S+55( P()*+ .3 2).- )*6 7*,.)356. Table:48 S.No. &. ,. ). *. O/.*.o* ?es No To some e4tent None R53/o*65*+3 &/ ) )( / ./ P5-05*+)?5 ,/ 5 (* / &//
performance appraisal system of Visakhapatnam Steel Plant is fair and unbiased.

80 70 60 50 40 30 20 10 0 74
20 6 Yes No To some extent 0 None
&nterpretation: Arom the above analysis have found that (*H of the respondents to some e4tent about performance appraisal system of visa!hapatnam steel plant is fair and unbiased, ,/H of the respondents said yes, 5H of the respondents say no.
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FINDINGS
&. A good number of employees agree that <4ecutive 0A$ helps them is assessing the competency. %egarding effective wor!ing environment half of the employees are having a clear view that effective <4ecutive 0A$ is having a good impact whereas the rest of them do not agree to it. ,. <4ecutive 0A$ of the 1$0 is found to be good whereas few of them felt that it is biased. The drive towards maintaining quality is very good. ). +ost of the employees feel that the main cause for their performance is not the lac! of s!ills but there is some other reason which directly is an impact on the performance. +ore than half of the employees said that top management is
advisable to conduct performance appraisal system. *. +ore number of employees are able to find there pros and corns in the area of 6ob performance. They are ready to participate in T and 3 programmes in the area where they are not perfect. .. +ore number of employees feels that promotion and reward system in this organization is purely based on 0A$. 5. The employees are not in a clear picture about the 0A$ <qual number of the employees are supporting and are against the e4isting of the 0A$. +a4imum
numbers of the employees are advising to conduct 0A$ periodically besides awareness programmes.
- -* -
SUGGESTIONS
&. The organization needs to recruit and select the employees of the young age group so that new ideas and thoughts of fresh employees can be adopted in 1.$.0. ,. f the employees are promoted as the managers then a new employee has to be recruited and selected for the replacement of the promoted employees. ). @rganization needs to maintain cordial relationship with all the employees so that a group of the employees should not feel that they are ignored. *. Action plan need to be developed to esses the dissatisfaction in <4ecutive 0.A.$ more effective and more transparent. .. t is advisable to develop new strategy with the help of <4ecutives 0A$ for creating the relationship among the employees along with effective environment. 5. The organization needs to find out the main problems and potentiality of the employees to improve their performance.
- -. -
SUMMARY
The FqualityG revolution has changed the ways in which many organizations operate. With global competition, the drive to provide better quality and to satisfy e4ternal and internal customers has been activated. At 1isa!hapatnam $teel 0lant, an attempt was made to integrate this thought in 0erformance Appraisal $ystem. 1isa!hapatnam $teel 0lant e4ecutives 0erformances Appraisal $ystem mainly aims at a F%esult @riented e4ecutivesG. To bring this about many activities are to be initiated, li!e 0erformance based recognition, competencies to handle futureOcurrent 6obs, career growth etc and 0A$ designed to provide the !ey inputs that all the above need to be activated. Their system of appraisal, in the first instance, loo!ed Ffool-proofG and well designed to suit the quality genre, for it has integrated in itself some wonderful concepts. Kut, when this study is completed the resultOconclusion showed that the employees, who actually are participants in the system, do feel that this system is not very effective. $urprised by this result, an attempt was made to analyze the %<A$@N$ A@% 3 $$AT $AA>T @N of e4ecutives their 0erformance Appraisal $ystem. They are; &. +ostly this system is not helping the person to assess his capabilities the assessment is mostly dependent upon the obedience with his boss. ,. $elf-assessment does not carry enough weight age. $o, the drive to sincerely appraise ones own self is lac!ing. ). 0otential review is integrated in the 0A$. Kut. 0otential being the capability to ta!e up the future 6ob cannot be 6udged by the performance on the present 6ob
- -5 -
*. Training needs identified either through self-assessment or team assessment consolidated and only a few of them are finalized after several rounds of filtering. This indirectly is resulting in training programmes, which do not cater to all the employees, being designed. And as employees perceive that the training they as!ed for is not being provided, there would by a little or no commitment at all. .. The employees are assessed by a team of appraisers, who are their superiors. The problem here is that the team of appraisers to not have regular interaction with the appraise, may give a rating which can be mostly sub6ective. 5. Tas!s and targets do not reflect the efficiency of e4ecuting them. (. Absence of a proper reward and punishment system. -. 8ac! of time spent by the appraiser and appraise during the performance review. '. A good number of employees are not satisfied with the ceiling prescribed for distribution in an appraisal group. &/. <mployees feel that filling the application form is a routine 6ob at the procedure and method should !eep on changing time to time. &&. While going through the analysis it seems that a good number of people are uncertain about each questions as!ed to them which clearly shows that there must be some fault e4isting in the stem which should be recognized and overcome. 2owever, none of the above reasons identified are so damaging that they cannot overcome. With slight changes in appraisal format and rating pattern the problems would be mostly solved.
- -( -
CONCLUSION
0erformance Appraisal system is very important to assess training needs to effect promotions, and to give pay increase. There are two methods in performance Appraisal systemM those are modern and tradition methods. Appraisal of performance proceeds in a set of pattern, the steps involved are " defining appraisal ob6ectives, establishing 6ob e4pectations, designing the appraisal programmes, conduction performance interview, and using appraisal data for different 2% activities.
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FACTORS TO BE INCLUDED INTO THE PRESENT CRITERIA FOR PERFORMANCE EVALUATION: :uality assignment of the wor! done 3isciplinary O administrative lapses <4traordinary occurrences 0roblem solving s!ills 0roductivity or wor!-output Attitude towards wor! Kehavior and health <fficiency >apability to ta!e up higher responsibility
FORMAL VS. INFORMAL APPRAISAL;

Fo-@)( )//-).3)(; t is usually occurs at specified time periods once or twice a year. t is required by the organization for the purpose of employee evaluation. I* 2o-@)( A//-).3)(: t occurs whenever the supervisor feels the need for communication with employees. Aormal appraisal most often used for primary evaluation. 2owler, informal appraisalCs very helpful for more performance feedbac!, the supervisor whenever feels the need, discuses performance change in the employeeCs wor! which helps in developing better interpersonal relations and develops a positive environment, <mployee problems are identified and discussed from time to time which helps him improve his performance.
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R5)3o*3 =41 /5-2o-@)*05 )//-).3)( 6o53 *o+ 2o-@ ) /-o/5- ,)3.3 2o- 650.3.o*3 -5?)-6.*? /-o@o+.o*3: Kiased evaluation is not a proper indication of an employeeCs performance standards %eliance on seniority rather than on performance for performance standards.
+anipulation, impression, ideas and deludes scan damage the credibility of the appraisal.
SELF'APPRAISAL AS THE BEST FORMS OF EVALUATION ONES PERFORMANCES:

This refers to the evaluation that employs ma!es of themselves, generally, after the employee and the supervisor ma!e their evaluations, they discuss perceived differences, here, the aim is not only to assess a person, but also to encourage employee development, to build teamwor! and to lin! 6ob performance with organizationCs goals. $elf "appraisal can be very effective as it provides employees with an opportunity to participate in the appraisal process and set performance targets for themselves. Number of organizations encourages discussions regarding differences in sub6ective rating between the employee and the supervisor so as to ensure active involvement form both sides.
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;UESTIONNAIRE
<mployee Name <mployee No. 3epartment ; ; ; 3esignation;
Kelow statements have been formed basing on a rating scale using the code given below for each statement, please tic! your choice. &. Are you happy being associated with 1isa!hapatnam $teel 0lantP aE ?es ,. bE No. cE To some <4tent dE None
3o you agree that the organization is maintaining effective performance appraisal $ystemP aE Agree bE $trongly agree cE 3isagree dE >annot $ay
).
0erformance appraisal system helps in an assessing competencyP 3o you agreeP aE Agree bE $trongly 3isagree cE 3isagree dE 3isagree
*.
3oes the performance appraisal hop in creating an effective wor! environment and create positive relationshipP aE ?es bE No cE To some e4tent dE None
..
3o you agree that low performance is due to lac! of s!illP
- '& -
aE Agree 5.
bE strongly agree
cE >annot say
dE 3isagree
Will the performance appraisal system encourage people to plan their wor! well in advanceP aE ?es bE No cE To some e4tent dE None
(.
n your opinion, who is the best person to conduct performance appraisal systemP aE sub " ordinates bE Agents cE 0eer dE 2@3 eE Top +anager
-.
Which one you thin! is the best performance appraisal system for your organizationP aE ndividual appraisal cE Team appraisal eE )5/ appraisal bE $elf appraisal dE 0otential appraisal
'.
3o you thin! that manager can get the wor! done by the employer without performance appraisal systemP aE agree bE strongly disagree cE >annot say dE 3isagree
&/.
2ow is the performance appraisal rating givenP aE +onthly basis bE :uarterly cE 2alf year dE Annually
&&.
3o you agree that the superiors give feedbac! to their sub"ordinator with adequate care and concernP
- ', -
aE Agree &,.
bE $trongly
cE 3isagree
dE >annot $ay
3o you thin! performance appraisal system forms proper basis for ma!ing decisions regarding promotions and rewards systemP aE ?es bE No cE To some <4tent dE None
&).
3oes 1isa!hapatnam $teel 0lant go by merit or seniority with respect to promotionsP aE No criteria dE both bE :ualification cE Ky seniority eE 0erformance
&*.
3o you thin! performance appraisal system effects the organization developmentP aE To large e4tent bE To some e4tent cE To title e4tent dE None
&..
3o you believe that performance appraisal system of 1$0 is fair and unbiasedP aE ?es bE No cE To some e4tent dE none
Signature
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BIBLIOGHRAPHY
S.No & N)@5 o2 +45 BooE 2uman %esource +anagement E6.+.o* *th <dition P7,(.0)+.o*3 Tata +c-9raw 2ill >ompanies " New 3elhi , 0ersonal 7 2uman %esource +anagement ) 2uman %esource +anagement ,nd <dition <4cel Koo!s " New 3elhi 1.$.0. %ao )rd <dition 2imalaya 0ublishing 2ouse " +umbai 0. $ubba %ao A7+4oA. Aswathappa
Websites; www.steelindustry.com www.steelplant.com www.rinl.com
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BIO'DATA
NA+< AAT2<%C$ NA+< $<N A9< 3.@.K. %<8 9 @N NAT @NA8 T? 8AN9#A9<$ IN@WN +A% TA8 $TAT#$ ; S. SRIVANI ; $. $@+A %AJ# ; A<+A8< ; ,, ?ears ; /5th April &'-5 ; 2 N3# ; N3 AN ; <N98 $2 AN3 T<8#9# ; $ N98<
EDUCATIONAL ;UALIFICATIONS: NAME OF THE S.NO COURSE +KA D2% and & +A%I<T N9E $IK% >ollege, , ) * K.>om D9eneralE Amalapuaram Triveni Jr. >ollege for NT<%+<3 AT< 9irls, Iothagudem %ama!rishna 1idyalaya, $$> 0alvancha ,//) ./ ,//)-/. ./ ,//.-/./ INSTITUTION Aditya 0.9. >ollege PASSING ,//--&/ .-.)) NAME OF THE YEAR OF PERCENTAGE
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Project of Srivani (Rinl)

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Project of Srivani (Rinl)

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Performance Appraisal System

Performance Appraisal System

NEED FOR THE STUDY

Performance Appraisal System

SCOPE OF THE STUDY

Performance Appraisal System

OBJECTIVES OF THE STUDY

Performance Appraisal System

$TAT $T >A8 3ATA

Performance Appraisal System

Performance Appraisal System

LIMITATIONS OF THE STUDY

0erformance Appraisal of individual employee is ta!en into consideration.

Performance Appraisal System

Performance Appraisal System

INDIAS STEEL SCENARIO

Performance Appraisal System

WORLDS DEMAND FOR STEEL:

HIGHLIGHTS OF PRESENT STEEL SCENARIO:

Performance Appraisal System

GROWTH OF STEEL INDUSTRY

Performance Appraisal System

Performance Appraisal System

STEEL PLANTS WITH FOREIGN COLLOBORATIONS

o2 A**7)( P-o670+.o* (,,/,/// Tones

(,(/,/// Tones -,//,/// Tones

PROBLEMS OF STEEL INDUSTRY:

Performance Appraisal System

LACK ! "A# $AT%"&ALS:

LACK ! T%C'(&CAL P" )L%$S

GOVERNMENT CONTROL AND PRICING POLICY

Performance Appraisal System

Performance Appraisal System

Performance Appraisal System

VSP TECHNOLOGY: STATE'OF'THE'ART

Kell less top charging system in blast Aurnance.

&//H slag granulation at the KA cast house.

$uppressed combustion " 83 gas recovery system.

&//H continuous casting of liquid steel.

FTemporeG and F$telmorG cooling process in 8+++ 7 W%+.

<4tensive waste heat recovery systems.

Performance Appraisal System

>omprehensive pollution control measures.

MAJOR SOURCES OF RAW MATERIALS

MAJOR UNITS AT VSP

Performance Appraisal System

MAIN PRODUCTS OF VSP

Performance Appraisal System

To create an inspiring wor! environment to unleash the creative energy of people.

Achieve e4cellence in enterprise management.

Performance Appraisal System

Performance Appraisal System

<nsure functioning of effective communication channels with employees.

Performance Appraisal System

MAR<ETING NETWOR< OF VISA<HAPATNAM STEEL PLANT:

POLLUTION CONTROL AND ENVIRONMENTAL PROTECTION:

ACHIEVEMENTS AND AWARDS OF VSP

Nehru +emorial National Award for 0ollution >ontrol. &'',-') 7 &'')-'*.

Performance Appraisal System

Performance Appraisal System

$T3 Award for FKest 2% 0racticesG " ,//,

Performance Appraisal System