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A STUDY ON

“PERFORMANCE

APPRISAL SYSTEM WITH
REFERENCE TO RINL, VSP ”
AT

VISHAKAPATNAM STEEL PLANT
(A report submitted to gayatri vidya parishad , ANDHRA UNIVERSITY.)

In Partial fulfillment for the award of

MASTER OF BUSINESS ADMINISTRATION
By
M.KRISHNAPREETHI
Under The Guidance Of
D. RADIKA
Senior Manager (Personnel H.R DEPT)
RINL, VISAKHAPATNAM STEEL PLANT

Faciliated by HRD deptt of RINL/VSP
Visakhapatnam
O.R.mohan rao
AGM(HRD) RINL/VSP

M.L.srinivasa varma
AM(HRD)RINL/VSP

CERTIFICATE

This is to certify that the project done by Ms.KRISHNA
PREETHI during the academic year 2011 - 2013, in
partial fulfillment for the award of ‘Master of Business
Administration’.

This project work is original and

exclusively done by her and has been never been a
basis for award/fulfillment of any degree or similar title
in this University or in any other University.

PLACE: VISAKHAPATNAM
DATE:

D. RADHIKA
Senior Manager (Personnel H.R DEPT)
RINL, VISAKHAPATNAM STEEL PLANT

CERTIFICATE OF PROJECT GUIDE IN VISHAKAPATNAM STEEL PLANT

This is to certify that the project report
entitled

a

case

study

on

“Performance

Appraisal System with reference to RINL,
VSP” is a bonfire work done and submitted in
partial fulfillment of the requirement for the
award of Master of Business Administration by
Ms.M.krishnapreethi

under

my

guidance

supervision.

PLACE: VISAKHAPATNAM
DATE:

D. RADHIKA
Senior Manager (Personnel H.R DEPT)
RINL, VISAKHAPATNAM STEEL PLANT

&

Place: VISAKHAPATNAM Date: M. VSP” SUB. ANDHRA UNIVERSITY. This project work is in partial fulfillment of the requirements for the award of the Master of Business Administration.krishna preethi.KRISHNAPREETHI .DECLARATION I. hereby declare that the project report entitled a case study on “Performance Appraisal System with reference to RINL. M. GAYATRI VIDYA PARISHAD FOR PG COURSES.

Visakhapatnam Steel Plant for her outstanding co-operation. for their kind co-operation and helping me to do my project successfully with them. No amount of words will be adequate to acknowledge the help rendered by the individual that assisted me in the preparation of this project report. I would also like to express my true sincere gratitude to Dr. Senior Manager (Personnel HR department) RINL. Visakhapatnam.ACKNOWLEDGEMENT The Quest for Knowledge Never Ends. Manipur Institute of Management Studies (MIMS). Lastly I would like to thank my parents who have always been a great source of support and encouragement. RAJINI (DIRECTOR OF MANAGEMENT STUDIES) AND SHAIK SHEHZADI (FACULTY). I am also thankful to the faculty members and staff of gayatri vidya parishad Management Studies for their valuable inputs. guidance and co-operation received from collective at the Steel Plant both explicitly and implicitly. VSP” This study is the result of the contribution. suggestion guidance and encouragement to complete the project successfully. encouragement and inspiration for this study. I would also like to thank to all my friends for the needful assistance. Radhika. I would like to express deeply my sincere gratitude and thanks to Madam D. I also want to extend my sincere gratitude to all the functional members at RINL. so continuing my journey of Knowledge in Department of Business Administration. I have assigned to do my Project title on “A Case Study on Performance Appraisal System with reference to RINL. Visakhapatnam Steel Plant. . for constant guidance.

suggestions conclusion Questionnaire Bibliography and . Krishnapreethi INDEX CHAPTER – I Introduction CHAPTER – II Industry Profile CHAPTER – III Company Profile CHAPTER .IV Performance Appraisal CHAPTER – V Performance appraisal at Visakhapatnam Steel Plant Ltd..M. CHAPTER – VI Analysis and Interpretation Findings.

CHAPTER – I INTRODUCTION .

CHAPTER – I INTRODUCTION: Appraisal of one individual by another individual is a continuous process and it is Natural phenomenon in human beings. there is a great requirement for assessing the efficiency to gear up the productivity of the work-force. This is constantly done. 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 short. 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 his/her responsibilities. OBJECTIVE The following are the specific objective of the present study. To study the performance appraisal system history and their activities in VSP. . consciously and unconsciously in our day-to-day interaction.

• To study and accesses the executive performance system and effectiveness. Marketing Department. RESEARCH DESIGN METHODOLOGY: To get information about Performance Appraisal System with reference to RINL. Vigilance Department. of employees from the executives were sort for their opinions on the existing appraisal system. Mills-Works Department. • To analyze the drive towards quality that is integrated into executives’ performance appraisal. SCOPE OF RESEARCH A sample of 50 respondents were selected at random from different department Personnel Department. VSP. VSP Simple Random Sampling survey was conducted. Finance Department. • To find the effectiveness of superior assessment of performance • To study. Project Departments and Training and Development Department. • To find there is a cohesiveness attitude towards each other employees • To find subordinates can give effective information for evaluating the performance of the employees • To find there is a room for the internal customer in PAS and can give valuable information for evaluating the performance of the employee • To find 360 degree appraisal can improved the appraisal system in VSP and can be implemented in RINL. . identify and suggest measures to improve effectiveness specifically from quality perspective. • To measure the satisfaction level of the appraisal system of VSP at present time.

Performance appraisal in VSP has been also been collected from all these records. The study confers itself only to executives ranking from Assistant Managers to General Managers. LIMITATIONS: The study is how ever subjected to certain limitation. forms. • The time is a major limitation. added to this source of information relating to the system. . • The study does not cover the entire executive fraternity and the officials at the rank of Directors and Chairman Cum Managing Director.B Gupta and Khankha. Questionnaire: The questionnaire was personally administrated with respondent in VSP it took nearly 30 minutes for each respondent to fill the questionnaire. Human resource and personnel management by C. The responses was given by the respondents were tabulated and a score sheet is prepared. The whole study was conducted within a period of 2 months. Author Books: The information relating to the performance appraisal system has been collected through a study of books. policy statements.For the present study of the data has collected by ways from the following ways. Organization design and steel industries in India. Organization Profile: The general information regards organization has been collected from files.

• To facilitate for testing and validating selection tests. • Performance appraisal is not job evaluation. self and management development programs. interview techniques through comparing their scores with performance appraisal ranks. therefore. They are: • To create and maintain a satisfactory level of performance. • To contribute to the employee growth and development through training. • To help the superiors to have a proper understanding about their subordinates. • Only the existing system has been studied and no attempt has been made to identify and complete new and dynamic performance system due to this constraints. • To guide the job changes with the help to continuous ranking. what range of pay should be assigned to the job. • Appraisals are arranged periodically according to a definite plan. • To facilitate fair and equitable compensation based on performance. Performance appraisal refers to how well someone is doing the assigned job.• Study is quality perspective has only been qualitative the information gathered in this regard is mostly through information discussion. PURPOSE: Performance appraisal aims at attaining the different purposes. • Performance appraisal is a continuous process in every large scale organization. Job evaluation determines how much a job is worth to the organization and. BRIEF DESCRIPTION • Performance appraisal is the systematic description of an employee’s job-relevant strengths and weaknesses. • The basic purpose is to find out how well the employee is performing the job and establish a plan of improvement. .

To provide information for making decisions regarding lay off,
retrenchment etc.

To

ensure

employee

organizational
for

standard

effectiveness,
and

improved

through

correcting

performance,

and

suggesting the change in employee behavior.
CONTENT OF PERFORMANCE APPRISAL:
Every organization has to decide upon the content to be appraised
before the programme is approved. Generally content to be apprised may
be in the form of contribution to organizational objectives (measures) like
production, cost savings, return on capital, etc. other measures are based
on:

Behavior which measure observable physical actions, moments,

Objectives which measure job related results like amount of
deposits mobilized,

Traits which are measured in terms of personal characteristics
observable in appraisal and type and level of employees.

Contents to be apprised for an officer’s job:

Regularity of attendance

Self-expression: Written and Oral

Ability to work with others

Leadership styles and abilities

Initiative

Technical skill

Technical ability / knowledge

Ability to Grasp new things

Ability to Reason

Originality and resourcefulness

Creative Skills

Area of Interests

Area of Suitability

Judgment Skills

Integrity

Capability for Assuming Responsibility

Level of Acceptance by Subordinates

Fig: Key Elements of Performance Appraisal
Systems

Human
Performanc
e

Performanc
e Appraisal

Executive
Feedback

Performanc
e Measures

Performance –
Related
Standards

Human
Resource
Decisions

Executive
Records

Fig: An Assessment Centre Model Establish Goals For Programme Obtain Top Management Commitment Do Detailed Job Analysis Define Dimensions to be assessed Develop Policies for Feeding Back Data Design physical Facilities Conduct Programm e Select Exercises and Participants Design Assessor Trainings Programme Provide Feed Back Train Assessors .

• To develop and organizational culture where superior-subordinate relationship.Evaluate Participants and Centre Against Job Success Criteria HUMAN RESOURCES DEVELOPMENT: It is well recognized everywhere that human competency development is essential prerequisite for any growth or development of the organization. • Develop their general capabilities so that may be able to discover their own inner potentialities and exploit them to full for their own and organizational development. team work and collaboration among different submits are strong and contribute organizational wealth and. Although development of human beings has been in existence in some from or the other since the beginning of civilization. Many organizations have set up “HRD Departments” which symbolized the recognition of importance of employee’s competency development. It is an organized learning experience aimed at matching the organization need for human resource with the individual need for career growth and development. a planned and systematic approach to HRD in the corporate sector emerged in the latter half of the 20th century. Human resource development is a newly emerging field of study. In an organizational context HRD is a process by which the employees of an organization are helped in a continuous and planned way to: • Acquire or sharpen capabilities require to perform various functions associated with their present or expected future roles. . CONCEPT OF HRD: HRD is the process of helping people to acquire competencies. motivation and pride of the employees.

FEATURES OF HRD: • Human resources Development is planned any systematic approach to the development of the people. motivation. • Human Resource Development is a process not merely a set of mechanisms. • To increase the capabilities of an organization to recruit. • Human Resources Development is an inter disciplinary concept. develop and use his / her capabilities to a fuller extent. retain and motivate talented employees. • Human Resources Development has both micro and macro aspects. • To create a climate that enables every employee to discover. dynamism and effectiveness of employees. placement. • Human Resource Development is a continuous process of developing the competencies. succession planning and the like. in order to further both individual and organizational goals. . OBJECTIVES OF HRD: • To provide a comprehensive frame work and method for the development of human resource in an organization. • To generate systematic information about human resource for purpose of man power planning.

• itself • Growing • Diversifying • Renewing itself to become more effective • Improving its systems and services • Change and becoming more dynamic • Playing leadership roles FUNCTIONS OF HRD DEPARTMENT: • Develop a HR philosophy for the entire organization • Keep inspiring the line managers to have a consistent desire to learn and develop.NEED FOR HRD: Competent and motivated employees are essential for organizational survival growth and excellence. Thus. organizational health . • Monitor effectively the implementation of various HRD subsystem / mechanisms. • Conduct human process research. HRD is need by every organization that is interested in the following activities. • Work with unions and associations and inspire them. Even to maintain such a saturation level of growth employee competencies need to be sharpened or developed. • Be aware of the business/other goals of the organization and direct all their HRD efforts to achieve these goals. an organization may achieve a saturation point in terms of its growth. Over a period of time. • Constantly plan and design new method and systems of developing and strengthening the HRD climate. surveys and renewal exercises regularly.

• Encourage sub-ordinates to accept more responsibilities and challenges. • Plan for effective utilization of talents of sub-ordinates. • Help the sub-ordinates to become aware of their position contribution. . • Help sub-ordinates to acquire new capabilities. • Understand the strengths and weakness of their sub-ordinates and help of subordinates to realize these.• Influence personnel policies by providing necessary inputs to the personnel department / top management. HRD MECHANISMS The following are the mechanisms of HRD • Performance appraisal • Potential appraisal and development • Feedback and performance counseling • Career planning • Training • Organizational development • Rewards • Employee welfare and quality of work like • Human resources information system PERFORMANCE APPRISAL Performance appraisal of some type is practiced on most organizational all over the world: A HRD oriented performance appraisal is used as a mechanism by supervisions to • Understand the difficulties of their subordinates and try to remove their difficulties.

FEEDBACK AND PERFORMANCE COUNSELING Knowledge of ones strengths helps one to become more effective. in fact the employee’s help to facilitate the change. to choose situations in which ones strengths are required and to avoid situations in which ones weaknesses could create problems. and employees who attend inhouse or outside training events are also expected to submit proposal . update to develop specific skills. Supervisions in and HRD system have the responsibility for ongoing observation and feedback to subordinates about their strengths and their weaknesses. Employees are helped to prepare for change whenever such change is planned. manager. In-house training programs are developed by in-house trainers or consultants hired for the task and periodic assessments are made of the training needs within needs. Employees generally are trained on the job or through special in house training programs. or sharing of experience that is not available within the organization. CAREER PLANNING: The HRD philosophy is that people perform better when they feel and see meaning in what they are doing. This is especially valuable if the external training can provide expertise. people do not recognize their strengths. corporate growth plans are not kept secret dong-range plans for the organizations are made known to the employees. equipment’s. as well as for guidance in improving performance capabilities. TRAINING: Training is linked with performance appraisal and career development. In the HRD system. For some employees (including executive) outside training may be utilized to enhance. These also increase the satisfactions of individuals often.

Appropriate rewards no only recognize and motivate employees. In order to maintain their work commitment and motivation.concerning any changes they would like to suggest on the basis of their new knowledge. the organization must provide some welfare benefits such as medical insurance. Efforts are made to improve organizational health through various means in order to maintain a psychological climate that is conductive to productivity. holidays and vacation. innovations and use of capabilities are rewarded in order to encourage the acquisition and application. This is particularly true in developing countries. newsletter announcements. disability insurance. The organizational development or systems experts also help any department or unit in the company that has problems such as absenteeism. EMPLOYEE WELFARE AND QUALITY OF WORK LIFE: Employees at lower in the organization usually performance relatively monotonous tasks and have fewer opportunities for promotion or change. ORGANIZATION DEVELOPMENT: The function includes research to ascertain the psychological health of the organization. special privileges and desired training reward may be given to individuals as well as to teams. In HRD systems. This is generally accomplished by means of periodic employee surveys. main and other units within the organization. department. The training received by employees is thus utilized by the organization. low resistance to change. but also communicate the organization value to the employees. increase in salary bonuses. REWARDS: Rewarding employee’s performance and behavior is important part of HRD. .

. Recreation and aesthetic and psychological and motivational factors such as flexible work hours. materials or finance in the overall scheme of management action in the company. • While on the hand HRD should appropriately harness employees potential for the attainment of company objectives on the other. HRD IN VISAKHAPATANM STEEL PLANT (VSP) The VSP has a nice HRD department with talented and experienced staff. freedom to suggest change or improvements. The HRD staff is very friendly and cooperative. the company as its corporate responsibility should create an enabling the best opportunity for self-expression all-round development and fulfillment. It is following more or less all the abo ve mentioned HRD mechanisms.Quality of work life programs generally focus on the environment with the organization includes basic physical amenities such as food and beverage facilities. • People are more than mere resource and therefore it will be a person with all the respect and sensitivity that are all the respect and sensitivity that is warranted when employees are seen as more than more ‘instrumentality’. maintenance. • HRD as a management function will be given a place of strategic priority along with function like production. challenging work and varying degree of autonomy. PHILOSOPHY OF HRD: • Employees of the company are its greatest and most valuable resources.

In RINL/VSP. HRD GROUP-KEY ACTIVITY: • TQM and in-house programs • Nomination to external programs • Organization research and organization development • Membership with professional bodies • Performance appraisal for executives • Human resource information . concern and development approach. • To enable employees seek great identification with the company by infusing most management decisions and actions with the requisite care. • All functional and divisional heads responsible for various activities of the company will the HRD spirit and suitably integrate HRD into their plans.• HRD does not refer to training alone or it is just a new name for training. for the development and growth of employees. decision and actions. • To work towards enabling the employees and other stakeholders ask self fulfillment even work for the growth and property of the company. • To foster an appropriate climate and culture which nature. HRD several management functions. • To utilization enable to employees and the organization to achieve its mission and objective and business goals through HRD. Employee competence and crease adequate motivational levels for the application of their abilities to assigned job / roles with required commitment. • HRD should eventually be a core philosophy of all management action and should not remain merely a report mental / sectional activity. HRD OBJECTIVES: • To provide initially a suitable match between employee competence levels and company’s work requirements.

• In plant training for management studies. • Lectures by eminent personalities. CHAPTER – II INTRODUCTION TO STEEL INDUSTRY IN INDIA . • Corporate presentation • Interactions with professional academicians and consultants.

To mention a few it is used for such small items as nails. 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 today’s science and technology. Steel is versatile and indispensable item. Steel is such a versatile commodity that every object we see in our day to day life has used steel either directly or indirectly in its product. needles etc. . to have machine structure. Realizing these countries planners have been formulating and updating annual plants for production of iron and steel. in large quantities. • It is only metallic item. The steel industry plays a vital role in the growth of nation’s economy. which can be continently and economically produced. It would have been very painful to imagine the fate of today’s civilization if steel has not been there. ship fabrication. railway materials. automobile parts. In this context a number of steel plants were setup. The versatility steel has not been there.CHAPTER – II INTRODUCTION TO STEEL INDUSTRY IN INDIA STEEL INDUSTRY: Steel industry is the back bone of all industrial commercial activities. etc. Steel is versatile and indispensable item. agriculture implements boilers. The versatility steel can be traced mainly of three reasons.

The development of steel industry in India should be viewed in conjunction with the type and system of government that had been resulting the country. Presently Indian is operating with open-hearth furnaces. but was expected to provide employment to the unemployed. The existing equipment. The production of steel in significant quality started . The Indian Steel industries have developed a bit in the recent years. The Indian companies cannot spend more for pollution control. recycle and recovery do not hold much ground in the Indian steel industry. The country’s aim is to sell quality steel. where the steel industry was never expected to generate profit from business. energy and labour in Indian Steel industry are much low than developed countries. The four aspects of “Waste Management” namely-residue reprocess. Many techniques are being implemented in the steel industries. • It properties can be changed over a wide range.• It has got very good strength coupled with density and malleability. The production is growing on properly. The apparent consumption of steel is shown below. The government is also helping the steel industries in this basis. The energy consumption per ton is 50-10% higher than that of the international norms. It alloys easily with many of the common element. INDIA’S STEEL SCENARIO: Indian steel industry has always remained isolated and protected by government. which can cause environmental problems. Indian steel industry generates a significant amount of waste materials.

HIGHLIGHTS OF PRESENT STEEL SECONARIO: • The world steel shows a low growth demand.5% annual rate up to 2000 following a 3. WORLD’S DEMAND FOR STEEL : The total demand for steel in world is expected to grow at an annual rate of 1. Steel demand in China. This is the present of the bold steps taken by the government to develop this sector. aluminum etc.0 annual rates up to the end of this century at a 7. Steel demand is less developed countries on a whole is expected to grow at a 5.2% rate between 1974 to 1984. • Developed countries slowly reduced the production of steel. According to their estimation total demand in advanced industrial countries on a whole is expected to grow at 0.5% per annual growth during 1974-1980. In the period of pre independence steel production was 1.0 million tons of target by the seventies. • Developing countries like China are planning to produce steel as much large quantity then of present output of 80 Mt.1 annual growth rate between 184-1994.3% annual steel demand growth.6% annual rate following a 2. which was raised to 9.7% between 1935 and 2000 A.D. • Indian consciously and strategically decides to invest into steel production. The growth of steel industry can be conveniently started by dividing the period into pre and post independent era. as per the study concerned by China economists.after 1990. . North Korea region would grow at 4. • There is a threat to steel industry from competitive products like plastics.5 million tons per year. per annum. within the controlling plant economy the Eastern Europe erstwhile USSR region may have 0.

Preference is given to superior quality products and high value item

production.

Customer oriented approach in view of product oriented approach

Emergence of new technology like scraps preheating

GROWTH OF STEEL INDUSTRY
The growth in a chronological order is depicted below:
S.No.

Year

Growth

1

1830

Osier Marshall Heathler constructed the first
manufacturing plant at port-motor in Madras
presidency.

2

1874

James Erskin founded the Bengal frame works

3

1899

Jamshediji TATA imitated the scheme for an
integrated steel plant.

4

1906

Formation of TISCO.

5

1911

TISCO Started production

6

1918

TISCO was founded

7

1940

Formation of Mysore iron and steel initiated at
Bhadravathi in Karnataka

8

1981-1956

First five-years plan- The Hindustan Steel
Limited (HSL) was born in the year 1954 with
decision of setting up three plants each with 1
million tones in got steel per year at Roiurkela,
Bhilai, Durgapur. TISCo started its expansion
program.

9

1956-1961

Second five –years plan – A bold decision was
taken up to increase the ingot steel output in
India to 6 million tones per year and its
production at Rourkela, Bhilai and Durgapur
Steel plant started.

10

1961-1966

Third five year plan during the plan the three
steel plants under HSL, TISCO & TISCO were
expanded*

11

1964

Bokaro Steel plant came into existence

12

1966-1969

Recession
period

till
the
expansion
programmes were actively existed during this
period.

13

1969-1974

Fourth five-years plan - Salem steel plant
started. Licenses were given for setting up of
many mini steel plants and re-rolling mills
government of India. Plants in south are each in
Visakhapatnam and Karnakata. SAIL was formed
during this period on 24th January 1973 definite
shape. At the end of the fifth five year plans the
totaled installed capacity fro six integrated
plants was up to 10.6 million tons

14

1979-1980

Annual plan. The Erstwhile soviet union agreed
to help in setting up the Visakhapatnam steel
plant

15

1980-1985

Sixth five-year plan – work on Visakhapatnam
steel plant stared with a big bang and top
priority was accorded to start the plant.
Schemes for modernization of Bhilai Steel Plant,
Rourkela steel plant, Durgapur steel plant and
TISCO were imitated. Capacity at the end of
sixth five-year plan from six integrated plants
stood 11.50 million tones.

16

1985-1991

Seventh five-year plan – expansion works at
Bhilai and Bokaro steel plant completed.
Prograess of Visakhapatnam steel plant picked
up and the nationalized concept has been
introduced to commission the plant with 30 MT
liquid steel capacities by 1990.

17

1992-1997

Eight five-year plan- The Visakhapatnam steel
plant was commissioned in 1992. The cost of
plant has become around 8755 crores.
Visakhapatnam
steel
plant
started
the
production and modernization of other steel
plants is also duly engaged.

18

1997-2002

Ninth
five-year
planRestructuring
of
Visakhapatnam steel plant and other public
sector undertakings.

STEEL PLANTS WITH FOREIGN COLLOBORATIONS
Sl.
No.
1
2
3
4

Sl.N

Plant

Collaboration Capacity of
Finished Steel Products
West Germany
Erstwhile USSR
Britain
Erstwhile USSR

Rourkela Steel Plant
Bhilai Steel Plant
Durgapur Steel Plant
Bokaro Steel Plant

Plant

Collaboration Capacity

Annual

o.

of Finished Steel

Production

1
2
3

Productions
West Germany
Erstwhile USSR
Britain

7,20,000 Tones
7,70,000 Tones
8,00,000 Tones

Rourkela Steel Plant
Bhilai Steel Plant
Durgapur Steel Plant

PROBLEMS OF STEEL PLANT INDUSTRY
LACK OF RAW MATERIALS:
Non-availability of good quality raw material is another faced by iron
and steel industry. The modern gain blast furnace needs high-grade iron
ore and good metallurgical coal.
Further the industry is unable to get good quality and manganese is
which the principle, raw materials next 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

LACK OF TECHNICAL PROBLEMS Bhilai had to execute orders for shipment of rails to Iran. Because of technical limitations. . but a few categories with effect from 1 st March 26. decided to remove statutory control over the price and distribution of all. GOVERNMENT CONTROL AND PRICING POLICY Since 1941. South Korea and Malaysia. supervise the steel and iron inducted according to the recommendation of Raja Committee.facilities. our technology in the field of steel production is not a developed one when compared to other advanced countries. India steel and iron industry was almost completely state regulated. The Govt. Rourkela plant is unable to substitute aluminum of zinc for the production of galvanized sheet apart from source internal problems. Both prices and distribution of steel were under control of government. But Raj committee in fixing the steel price didn’t regulate the price of raw materials. Another problem faced by the steel industry related to the difficulty in getting zinc supplies for the continuous galvanizing line. 1964 the Govt.

CHAPTER – III COMPANY PROFILE .

656 million Tons of saleable steel. VSP products meet exacting International Quality Standards such as JIS. The certificate covers quality systems of all Operational. VSP has an installed capacity of 3 million Tons per annum of Liquid Steel and 2.e. seamless integration and efficient up. BS etc.gradations. the first coast based Steel Plant of India is located. At VSP there is emphasis on total automation. which result in wide range of long and structural products to meet stringent demands of discerning customers within India and abroad. and BIS. Bestowed with modern technologies. VSP has become the first integrated Steel Plant in the country to be certified to all the three international standards for quality (ISO-9001). for Environment Management (ISO-14001) & for Occupational Health & Safety (OHSAS-18001). 16 KM South West of city of Destiny i.CHAPTER – III COMPANY PROFILE Introduction Visakhapatnam Steel Plant (VSP). Maintenance and Service units besides Purchase systems. DIN. Training and . Visakhapatnam.

VSP plans to make a continuous presence in the export market. VSP exports Quality Pig Iron & Steel products' to Sri Lanka. USA.Marketing functions spreading over 4 Regional Marketing Offices. Having a total manpower of about 17. 24 branch offices and stock yards located all over the country. Nepal. This has made Steel Township a greener. which can boast of 3 to 4° C lesser temperature even in the peak summer compared to Visakhapatnam City. cleaner and cooler place. 460 crores worth of Pollution Control and Environment Control Equipments and converting the barren landscape by planting more than 3 million plants has made the Steel Plant. Middle East. The announcement to this effect was made in the . China and South East Asia. Having established a dependable export market.600 VSP has envisaged a labor productivity of 265 Tones per man-year of Liquid Steel. Myanmar. Steel Township and surrounding areas into a heaven of lush greenery. Government of India decided to establish Integrated Steel Plant in Public Sector at Visakhapatnam (AP). Background & Corporate Plan of VSP Background With a view to give impetus to Industrial growth and to meet the aspirations of the people from Andhra Pradesh. VSP by successfully installing & operating efficiently Rs. RINL-VSP was awarded "Star Trading House" status during 1997-2000.

N. Government of India on 18th Feb'82 formed a new Company called Rashtriya Ispat Nigam Ltd.0 Million Tons of Liquid Steel per annum. Thus. A site was selected near Balacheruvu creak near Visakhapatnam city by a Committee set up for the purpose. of India. Finally all . one of the Steel Melt Shops and one of the mills were curtailed. to RINL.01. 6849 crores based on 4th Quarter of 1988. 1979 for setting up of an Integrated Steel Plant to produce structural & long products on the basis of detailed Project report prepared by M/s M. greater availability of land and proximity to a future port. the construction could not keep pace with the plans. keeping in view the topographical features.1971. planned / ordered for procurement and achieving higher levels of operational efficiency and labor productivity. In the process. The construction of the Plant started on 1st February 1982. Seeds were thus sown for the construction of a modern & sophisticated Steel Plant having annual capacity of 3. the plant capacity was limited to 3. A Comprehensive revised DPR jointly prepared by Soviets & M/s Dastur & Company was submitted in Nov' 1980 to Govt. An agreement was signed between Governments of India and the erstwhile USSR on June 12th. In view of the critical fund situation and need to check further increase in the plant costs. Due to poor resource availability. Indira Gandhi. Dastur & Company. a rationalized concept was approved which was to cost Rs.Parliament on 17 April' 1970 by the then Prime Minister of India late Smt.4 Million Tons of hot metal. (RINL) and transferred the responsibility of constructing. The rationalized concept was based on obtaining the maximum output from the equipment already installed. commissioning & operating the Plant at Visakhapatnam from Steel Authority of India Ltd. The availability of resources were continued to be lower than what was planned and this further delayed the completion of the construction of the plant. which led to appreciable revision of the plant cost. Gandhi laid the foundation stone for the plant on 20. Smt.

operational efficiency and expansion: augmentation of assured supply of raw materials. . Narasimha Rao dedicated the plant to nation on 1st August 1992. The then prime Minister of India Late Sri P. V. • Be a respected corporate citizen. average converter life of 3126 heats an average of 23. ensure clean and green environment and develop vibrant communities around us. to produce steel at international standards of cost and quality: and to meet the aspirations of the stakeholders.the units were constructed and commissioned by July' 92 at a cost of Rs.6 heats per sequence in continuous Bloom Caster.8529 Crores. • Create an inspiring work environment to unleash the creative energy of people. • Deliver high quality and cost competitive products and be the first choice of customers. a specific refractory consumption of 8.Objectives(VMO) and core values MISSION To attain 16 million ton liquid steel capacity through technological upgradation. Coke rate of the order of 509 Kg/Ton of Hot metal. productivity & exports. Corporate Plan : Vision. VISION To be a continuously growing world-class company. Since Commissioning VSP has already crossed many milestones in the fields of production.94 kg and a labor productivity of 414 Ton / man-year are some of the peaks achieved in pursuit of excellence. • Achieve excellence in enterprise management.07 G Kal / ton of liquid steel. Specific energy consumption of 6. we shall • Harness the growth potential and sustain profitable growth. Mission .

200 31. • Vibrant work culture in the organization. • Achieve higher levels of customer satisfaction.03.03.OBJECTIVES • Expand plant capacity to 6.03.5 Mt.2011) EXECUTIVES WORKS PROJECTS MINES OTHERS NON – EXECUTIVES As on As on 31.07.07. VSP (as on 1.200 7 8 3532 4201 2145 2584 225 280 54 64 1108 1273 11937 11544 As on 31. maintaining high levels of safety and 0addressing social concerns. • Be proactive in conserving environment. • Be amongst top five lowest cost liquid steel producers in the world.201 0 5263 3153 327 104 2110 12567 As on 01. CORE VALUES • Commitment • Customer Satisfaction • Continuous Improvement • Concern for Environment • Creativity & Innovation MANPOWER OF RINL.03. thus total hot metal capacity to 7. • Revamp existing Blast furnaces to make them energy efficient to contemporary levels and in the process increase their capacity by 1 Mt.200 9 5218 3249 329 93 1547 12007 As on 31.201 1 5258 3231 340 94 1593 12500 .3 Mt by 2011-12 with the mission to expand further in subsequent phases as per Corporate Plan.

3.b.6.WORKS PROJECTS MINES OTHERS TOTAL WORKS PROJECTS MINES OTHERS 10687 68 281 901 16574 13608 320 357 2289 10387 64 265 828 16433 13463 353 350 2267 10476 63 267 1201 17225 13725 392 360 2748 11163 58 262 1404 17830 14316 385 366 3514 11256 50 247 947 17758 14487 390 360 2521 Key performance indicators Production Performance: Commercial Performance Year 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 Sales Turnover Domestic Sales 9151 8726 10433 9878 10458 10379 10634 10283 11517 11095 Exports 424 555 79 351 422 Table 3.a commercial performance(rupees in crores) Fig.6. Commercial Performance since 2006-07 .

CHAPTER – IV PERFORAMNCE APPRAISAL .

he is then apprised for his performance. trained the motivated. Individually and collectively. Performance appraisal is the step where the management finds out how effective it has been at hiring and placing employees if any problems are identified. etc.Development of the . it is the part of the other staffing process. A performance appraisal is a process of evaluating the performance appraisal is a process of evaluating the performance and qualification of employee according to job and its requirement. TRENDS IN PERFORMANCE APPRAISAL: Item Former Emphasis Terminolog Merit-rating y Purpose Determine wage Present Focus Performance appraisal increase. teacher evaluate their student and employers evaluate their employee. excellence. However. Parents their children. At the inlands of Walter Dill Scott the US army man to man rating system for evaluating military personal. selection. like recruitment. Qualities of status of some object person or things. Once the employees has been selected. steps are taken to communicated to employee and to remedy them. placement. It is also known as the process of estimating and judging the value. formal evaluation of employees is believed to have been adopted for the first time during First World Ward.CHAPTER – IV PERFORAMNCE APPRAISAL INTRODUCTION Appraisal of performance is wide used in the society.

transfer. promotion. • To diagnosis the strength and weakness of individuals so as to identify further training needs. contribution and potential of employees. lay off. • Main process performance appraisal is to secure information necessary for making objective and correct decision on employees OBJECTIVES OF PERFORMANCE APPRAISAL: The main purposes of performance appraisal are as follows: • To provide a valid data base for personnel decision concerning placements. . • It is an organizing or continuous process where in the valuation is arranged periodically according to a definite plan. Formal procedure is used in the study the same approach is adopted for all jobs holders for that result is comparable. transfer. punishment etc. • Performance appraisal is the scientific or objective study. The main characteristic of performance appraisal is as follows: • Performance appraisal is the process consisting of series of steps. pay. upon CONCEPT OF PERFORMANCE APPRAISAL: Performance evaluation or performance appraisal is the process of assessing performance and progress of employee or of a group of employee on a given job and his potential for future development. In concept of all formal procedure used working organization to evaluate personality. improved Application Fort rank and file workers performance For managerial Factors technical personnel Performance result Personal traits rated Techniques Rating scales with job and or accomplishment emphasis Mutual goal-setting. • It is the systematic examination of employee’ strengths and weakness in terms of jobs.promotion. individual.

Definition: Performance evaluation of performance appraisal is the process of assessing the performance and progress of an employee or of a group of employees on a given job and his potential for future development.• To provide coaching. periodic and an impartial rating of an employee’s excellence in matters pertaining to this present job and his potential for a better job”. • It is a scientific and objective study. • To facilitate research in personnel management. Formal Definition: “it is the systematic evaluation of the individual with respect to his / her performance on the job and his / her potential for development”. superior-subordinate relations and thereby reduce grievances. career planning and motivation to subordinates. Formal procedures are used in this study. counseling. • It is an ongoing or continuous process there in the evaluations is arranged periodically according to a definite plan. . • To develop positive. Characteristics: • It is process of consisting of series of steps • It is the systematic examination of an employee’s strengths and weaknesses in terms of his job. According to Flippo “Performance Appraisal is the systematic.

counseling. . • It is useful in analyzing and development needs. Uses: • It provides valuable information for personnel decisions such as pay increase. selection placement and orientation system of the organization. Objectives: • To provide feedback to employees so that they come to know where they stand and can improve their job performance. • It facilitates Human Resource Planning. punishments. etc. Thus. career planning and succession planning. pay promotions. • To provide a valid data base for personnel decision concerning placements.• The main purpose of performance appraisal is to secure information necessary for making objective and correct decisions on employees. transfers. • To diagnose the strengths and weakness of individuals so as to identify further training needs. career planning and motivation to subordinates. performance appraisal aims at both judgmental and development efforts. promotion etc. • To provide coaching. • To develop positive superior – subordinates relations and thereby reduce grievances. • It can be used to improve performance though appropriate feedback. • It helps to judge the effectiveness of recruitment. working and counseling to employees.

the reason behind them are also analyzed and discussed. A feedback regarding the standards should be obtained from the evaluators and the employees for revision or modification. This criteria should be clear. • Taking corrections – through mutual discussions with employees. The criteria are specified with the help of job analysis. Along with the deviations. objective and in wiring. • Discussing the appraisal – The results of the appraisal are communicated to an discussed with the employees. etc. which reveals the contents of job. coaching. which may be positive or negative. • Communicating the standards – the standards are conveyed to the employees and the evaluators. Such comparison will reveal the deviation. • Comparing the actual with the standards – actual performance is compared with the predetermined performance standards. identifying the internal and external factors influencing performance and collecting information on results achieved.. • Measuring performance – this require choosing the right technique of measurement. the step required to improve performance are identified and initiated. Such discussion will enable the employee to know his weaknesses and strengths. Process of Performance Appraisal: • Establishing performance standards – the appraisal process begins with the setting up of criteria to be used for appraising the performance of employees.A competitive spirit is created and employees are motivated to improve their performance. counseling. Training. . are examples of corrective actions that help to improve performance.

These may be classified into Traditional and Modern methods. • Paired comparison method – This is a modified form of man to main ranking. It is assumed that it is desirable to rate only two factors by this method that is job performance and promo ability. • Man-to-man compression methods: In this method. The number of times an employee is judged better than other determines his rank. A scale of man is also created for each selected for each factor. These may be classified into Traditional and modern methods. This method is used in job evaluation and is known as the factor comparison method. certain factors are selected for the purpose of analysis and the rater for each factor designs a scale. Then each man to be rated is compared with the man in the scale. In other words. Comparison is made on the basis of overall performance.METHODS OF PERFORMANCE APPRAISAL Several methods and techniques are used for evaluating employee performance. For this purpose a five poking performance scale is used without any . and certain scores are awarded to him. each employee is compared with all others in pairs on at a time. • Forced distribution method – In these techniques the rater appraises an employee according to a pre-determined distribution scale. Herein. evaluator assigns relative ranks to all employee performance. Traditional Methods: • Ranking Method: is technique. a whole man is compared to a “key man” in respect of one factor at a time.

measurers actual performance of an employee. attitude. Intelligence. • Graphic rating scales methods – It is a numerical scale indicating different degrees of a particular train. • This method is widely used as it is easy to understand. • Group appraisal method – Under this method. analysis the causes of poor performance improvements in future. are some use characteristics. This method helps to avoid vague impression and general remarks as the rating is based on actual records of behavior. leadership skills judgment. The group determines the standards of performance for the job. This group consists of the immediate supervisors of the employee. It allows a statistical tabulation of scores and. head of the department and a personnel expert.descriptive statement & employees are placed between two extremes of good and bad performance. quality of world. and offers suggestions for . a group of evaluators assess employee. These critical incidents are identified after though study of the job and discussions with the staff. etc. The rating of the employee depends on the positive or the negative behaviors during these events. The approach is multi- dimensional as several significant dimensions of the job can be considered in evaluation. The form contains several characteristics relating to the personality and performance of employee. other supervisors having close contact with the employer’s work. The rater is given a printed from for each employee to be rated. a ready comparison of scores among the employees is possible. • Critical incident method – In this method the superior keeps a written record or critical (either good or bad) events and how different employees behaved during such events.

and marks them accordingly to a scale. he supplies reports about it and the personnel department does the final rating. • Filed review method – In this method. 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 supervisor makes a free form. • Forced Choice Distribution method – In this method. The rater is asked to indicate which of the phrases is most and least descriptive of the employee. They may be grades as ‘A’ – outstanding ‘B’ – very good. job knowledge. the rating elements are several of pair’s phrases of adjectives relating to job proficiency or personal qualification. series of questions are presented concerning and employee’s behavior. the rater considers certain factors. • Checklist method – In this method.• Grading method –Under this method. The tradition methods given above focus on the traits of an employee than an his job performance. ‘E’ – poor. in the absence of predefined performance . co-operation. ‘D’ – fair. The selected factor may be analytical ability. Here rater does not evaluate employee performance. trainer employee from the personnel department interviews line supervisors to evaluate respective subordinates. open-ended appraisal of an employee in his own words and puts down his impression about the employee. • Free Essay Method – In this method. dependability self- expression. ‘C’ –good/average. The actual performance of an employee is then compared with these definitions and he is allotted the grade which best described his performance. The description is always as factual and concrete as possible.

• Managers generally are not qualified to assess personality traits. etc. communicating ability to plan and organize. Assessments centers are not only methods of appraisal but help to determine training and development needs of employees and provide data for human resources planning. The most important feature of the assessments center is job-related simulations. In order to overcome these weaknesses some new techniques of performance appraisal have been developed.An assessment center is a group employee drawn from different work units. Modern Methods: • Assessments center method . Evaluators observe and rank the performance of all participants.criteria or standards. These employees work together on assignments similar to the one they would be handlings when promoted. This group evaluates all employees are both individually and collectively by using simulations techniques like role – playing. This asset can be valued in . • Some managers discourage good performances by over emphasizing shortcomings and almost neglecting good work. An assessment center generally measures interpersonal skills. The evaluators prepare a summary report and feedback is administered on a faceto-face basis to the employees who ask for it. • Human resource accounting method – Human resource are a valuable asset for any organization. This approach caused the following responses: • The very nature of the appraisal system led to criticism • Criticism exercised a negative impact on goal attainment • Criticism increased antagonism and defensiveness among employees resulting in inferior performance. business games and in-basket exercises? Employees are evaluated on the basis of job related characteristics considered important for job success. the personal bias or subjectively of the evaluator affects the rating.

• Critical areas of job performance and the most effective behavior for getting results are determined in advance. training. recruitment. Under the this method performance is judged in terms of costs and contributions of employees. When competent. • Retranslate the incidents – Another group of knowledgeable persons assign each incident to the dimension that it best describes. Incidents for which there is less than 75% agreement with the first group are not retranslated. selection. In this way an employee’s actual behavior is judged against the desired behavior. Difference between cost and contribution will reflect the performance of employees. therefore. Costs of human resources consists of expenditure on human resources planning. etc. This steps involved are:- • Identify critical incidents – Persons with knowledge of the identify job to be appraised describe specific examples of both effective and ineffective job behaviors. compensation. This method is still in the transitory stage and is. and well-trained employees leave and organization the human asset ids decreased and vice versa. The rater records the observable job behavior of an employee and compares these observations with BARS. • Select performance dimensions .terms of money. induction. contribution of human resources is the money value of labor productivity of value added by human resources. .The persons then cluster the behavioral incidents into a smaller set (usually 5-10) of performance dimensions. • Behavioral Anchored Rating Scales (BARS) - This method combines graphics rating with critical incidents method. BARS are decryptions of various degrees of behavior relating to specific performance dimensions. not popular at present.

A final BARS instrument typically comprises a series of vertical scales that are endorsed by the include incidents. • 360 degrees performance appraisal - This is a new concept in performance appraisal. • Helps in maximizing employee potential in the face of challenges. • The evaluation is very comprehensive in terms of the employee’s skills. . where the feedback is collected form all around – the employee. Means (average) and standards deviations are then calculated for the scale values assigned to each incident. • Develop final instrument – A subset of the incidents that meet both the retranslation and standard deviation criteria is used a behavioral anchor for the final performance dimensions. Rating is done on the basis of how well the behavior described in the incident represents the performance on the appropriate dimensions. • The method is more reliable and valid as it is job specific and identified observable and measurable behavior.• Assign Scales to incidents - The second group rates each incident on a 7 or 9 point scale. Each incident is positioned on the scaled according to its mean value. the subordinates. This system has the following advantages: • Higher validity and reliability of the evaluation • Self evaluation by the employees gets compared with the perception of others. ADVANTAGES: • Ratings are likely to be accurate because these are done by experts. Abilities. the superiors. and the customers. the peer group. styles. and job-related competencies.

Since the MBO has become an effective and operational technique of performance appraisal and a powerful philosophy of managing. Limitations: • It is very consuming and expensive to develop BARS for every job. .• Ratings are likely to be more acceptable due to employee participation • The use of critical incidents is useful in providing feedback to the employee being rated. • Behaviors used are more activity oriented than results oriented Appraisal by result or MBO (Management by Objectives) – The concept of management by objectives was developed by Peter Drucker in 1954.

The Human resource department sends the appraisal forms to the concerned departments after duly fitting in the staff details.CHAPTER – V PERFORMANCE APPRAISAL AT VISAKHAPATNAM STEEL PLANT LIMITED CHAPTER – V PERFORMANCE APPRAISAL AT VISAKHAPATNAM STEEL PLANT LIMITED COMPONENTS When to appraise: Performance appraisal across all levels at Visakhapatnam steel plant limited is conducted twice in a year. Who Should Appraise: .

PROCEDURE: The Human Resource department prepares appraisal forms for each and every category of employee and at the start of the appraisal period.. the same shall be put to the reviewing officer who after careful scrutiny of the appraisal will pass his remarks. Usually a 4. In case the employee is directly working under the supervision of any officer higher. The assessment an employee is primarily governed under a 2 – tier system that is assessment by the Reporting Officer as well as by the Reviewing officer. on transfer. where the assessment is subject to concurrence of the Consenting Authority. .point scale or a 10 – point scale for each factor is used for rating. The staff should have worked at least for a period of 6 months to be appraised by an officer. promotion etc. The assessment done on the basis of certain attributes / factors which help in defining the job requirements of a particulars job. Once the reporting officer gives his rating and comments if any. The personnel department would forward the appraisal forms to Reporting officers concerned for the period. In case the appraise reports to more than one reporting officer in an appraisal year. it sends these forms to the concerned departments after filling in the necessary details of the employee to be appraised which is called ‘background information’. the appraise reports to them.. which will be final.The immediate superior of the employee not below the Assistant Manager cadre shall be the Reporting Officer.

training and personnel and developmental decisions in respect of the individual so appraised. may decide to discuss the appraisal with the employee himself but in the presence of the Reporting officer. Objective of performance appraisal system: • To appraise the individual’s performance on the work assigned to him and qualities he is expected to show on the job in performing his tasks as expected by the organization through his supervising officers and to assess the potential for higher responsibilities. • The generate inputs for promotions. He can advise the reporting officer to discuss the appraisal with the employee or. The complete appraisal report is then sent back to the personnel department in a confidential cover. placements. Later these are discussed with the employee to know his reaction. the reporting officers give his final remarks and his suggestions for improvement of the employee performance. The personnel department will then check the appraisal report for irregularities and any adverse entries against any of the employee made by the reporting officer will be communicated to the employee in a covering letter asking him/her to improve and a copy of the small will be placed in his / her personal life. The reviewing officer for further comments later scrutinizes these. confirmations. which are communicated. After the discussion with the employee. . in certain cases. to the reviewing officer.After the reviewing officer’s comments are given and duly signed by him. The reporting officer after rating the employee on various attributes will give his remarks.

ABOUT THE FORMS Content of the Form: • Background information of the employee to be filled in by the personnel department which contains• Name • Designation • Date of joining • Department • Employee number • Special assignment • Qualification . managerial. • Over – rating as well as under – rating diminishes the value of the assessment. • Each factor under considerations should be appraised independently without being influenced by other factors. • Judgment should be based on the entire review period & not on isolated incidents. • It is advisable that the individual being assessed should compare with other of the same rank employed on more or less similar type of work. • Reason for given rating of the attribute should be well substantiated. Guide Lines for Appraisers: • The employee should be appraised for his present position. behavior and other training and development needs and provide information to the personnel/HRD department for the development decisions. • Snap judgments should be avoided.• To assess the professional.

resourcefulness and the ability to inspire confidence should be considered.• Commendation • Punishments and warnings awarded during the year (with reasons) Attributes For Performance / Potential Assessment For Officers: • Professional knowledge and application • Capacity to achieve results • Dependability • Judgment and decision making • Communication skills (written or oral) • Leadership • Planning and organizing ability • Co-operation and team spirit • Adaptability • Personality For Technical / Non-Technical Staff (common attributes): • Job knowledge : knowledge and understanding of job assigned • Quality of work: Thoroughness and accuracy of work done without mistakes. • Quality of work: Amount of out vis-à-vis the time taken • Initiative : Self – staring ability. • Conduct: Ability to get on with other fellow employees. neatness and present ability should be considered. . • Regularity: Punctuality and regularity of attendance. • Leadership: Ability to get work done by subordinates giving them clear guidance.

RATING 15-13 REASON Output of work exceptionally high and above expectations/ tasks assigned despite high degree of difficulty of tasks.Technical Staff only: Dealing with others: Ability to appreciate others points of view and approach in dealing with customers suppliers or any other outsiders in conformity with organizational requirements. RATING OF ATTRIBUTES The common factors and the ratings under which the appraisal are made are as follows: QUANTITY OF OUTPUT Extent of target fulfillment and completion of assigned tasks. • Care of tool and equipment: Manner in which tool and equipment handling is done ensuring better tool life and less maintenance and damage. For Technical Staff only: • Safety consciousness: Habits and work practices in respect of personal safety and safety of fellow employees. 12.• Cost consciousness: Ability of foresee the resource requirement for any task and complete assignments with minimum waste.10 Fulfillment of all tasks / targets despite constraints 9-7 efforts Tasks assigned generally met with moderate 6-4 Output below target / expectation despite lack of . For Non.

RATING REASON . Wasteful in work Lacks desire to complete assignments JOB KNOWLEDGE AND SKILS: Knowledge pertaining to the area of work and related areas. 3. RATING REASONS 15-13 Excellence quality of output accurate in work under all conditions.constraints Moderate effort. Optimum utilization of available resources and reduction of wastes.1 Output far below expectation Target / tasks not fulfilled Low effort QUALITY OF OUTPUT: General excellence of output. the extent of work free from errors. 12-10 Does a through and accurate job 9-7 Generally produces work of acceptable quality 6-4 Work barely upto the mark 3-1 Works consistently below required standards. RATING REASON 10-9 Always makes optimum utilization of resources 8-7 All assigned tasks completed within the specific cost parameters 6-5 Generally keeps within cost parameters and time schedules 4-3 Conscious of the need to effect economy and manager time 2-1 in time. COST CONTROL: Awareness of cost aspects in the job.

no motivation to learn. instructions and follow-up 2-1 Always requires to be told COMMUNICATION : Skills and desire to share available information with all concerned. RATING REASON 10-9 Excellent clarity of though and expression 8-7 Shares information with all concerned 6-5 Has moderate skill and desire to share information 4-3 Only believes in downward communication 2-1 Lacks both the skill and the will to communicate .10-9 Excellent ability to anticipate future work needs ahead of time 8-7 Good knowledge of the own jib and related areas 6-5 Knowledge adequate in own area 4-3 Knowledge inadequate in own and related areas. RATING REASON 10-9 Totally self-reliant A self-starter 8-7 Good initiative 6-5 Generally shows good initiative 4-3 Needs guidance. 2-1 Poor knowledge. DISCIPOINE: Adherence to company policies and rules RATING REASON 10-9 Exemplary behavior and conduct 8-7 Good behaviors and conduct 6-5 Discipline is generally good 4-3 Conduct and discipline within manageable limit 2-1 Low in discipline INITIATIVE: Ability to be self-reliant and move forward on a task without outside direction.

MANAGEMENT OF HUMAN RESOURCES : Effective control and utilization of sub ordinates. RATING REASON 5 Excellent Control over and utilization of people 4 Good utilization of people 3 Plays basically a controlling functions 2 Has little control 1 Has no control over his / her people CHAPTER – VI ANALYSIS AND INTERPRETATION . ensuring discipline. integrating employees into teams and motivating them for higher levels of performance.

1 •Considering everything how would you rate your overall satisfaction with VSP at the present time? Tabulation Format Sl. 10 respondents expressed Strongly .CHAPTER – VI ANALYSIS AND INTERPRETATION Statement No.No. 1 2 3 4 Rating Strongly agree Strongly disagree agree disagree Total Respondents 49 10 41 0 Percentage 49 10 41 0 100 100 Interpretation The they above tabulation format shows that the majority of 49% respondent expressed Strongly agree to the above statement.

Employees of VSP are satisfied with the work with the organization. 1 2 3 4 Rating Yes No Sometimes Never Respondents 33 50 11 6 Percentage 33 50 11 6 100 100 Total Interpretation .No. 2 • Monetory & Non-Monetory benefits given for outstanding performance Tabulation Format Sl.disagree and 41 expressed that are happy being associated with VSP. Statement No.

No. 1 2 3 4 Rating Yes No Never Sometimes Total Respondents 56 18 25 0 Percentage 56 18 25 0 100 100 Interpretation . 33% employees strongly agree and 50% employees disagree 11% employees felt that Monetory & Non-Monetory benefits are given sometimes and remaining 6% employees are presumed that Monetory & NonMonetory benefits are never given . Statement No. Here.The above tabular format explains that Monetory & Non-Monetory benefits given for outstanding performance. 3 Performance Appraisal system helps in assessing competency Tabulation Format Sl.

4 performance appraisal help in creating an effective work environment & create positive relationships Tabulation Format Sl.The above tabular format explains that Performance Appraisal system helps in assessing competency employees Here. 56% of employees strongly agreed.61% of employees are strongly agreed.No. 1 2 3 4 Rating Yes No Never Sometimes Total Respondents 61 15 24 0 Percentage 61 15 24 0 100 100 Interpretation The above tabular format explains performance appraisal help in creating an effective work environment & create positive relationships .18% of employees disagreed and 25% of employees said never to the above statement Statement No. . 24% of employees were presumed never to the above statement. 15% of employees disagreed.

employees 9% of employees strongly disagreed. 47% disagreed 30% of employees agreed and 14% strongly agreed with the above statements. . 5 low performance is due to lack of skill Tabulation Format Sl.No.Statement No. 1 2 3 4 Rating Strongly disagree disagree agree Strongly agree Total Respondents 9 47 30 14 Percentage 9 47 30 14 100 100 Interpretation The above tabular format explains that do low performance is due to lack of skill .

6 performance appraisal is the right way to asses human potential Tabulation Format Sl.No. 47% employees disagreed.Statement No. 30% of employees Strongly agreed and 14% of employees agreed to the above statement. 1 2 3 4 Rating Strongly disagree disagree Strongly agree agree Total Respondents 9 47 30 14 Percentage 9 47 30 14 100 100 Interpretation The above tabulation explains is performance appraisal is the right way to asses human potential 9%of employees strongly disagreed. .

No. According to employees 7% are Disagreed.Statement No. 1 2 3 4 Rating Strongly agree agree Disagree Strongly Disagree Total Respondents 7 69 19 05 Percentage 7 69 19 05 100 100 Interpretation The above table explains does performance appraisal system forms proper basis for making decisions regarding promotions and rewards system. 69% agreed and 19% of employees disagreed and remaining 5% strongly disagreed on the above statement . 7 performance appraisal system forms proper basis for making decisions regarding promotions and rewards system Tabulation Format Sl.

Statement No. 8 Objectives of the Performance Appraisal System (PASS) are clearly spelt out Tabulation Format Sl. 19% employees disagreed and 6% employees strongly disagreed with the above statement.No. 9 • Time period of every Performance Review .63% employees agreed. 1 2 3 4 Rating Strongly agree agree Disagree Strongly Disagree Respondents 12 63 19 6 Percentage 12 63 19 6 100 100 Total Interpretation The diagram explains Objectives of the Performance Appraisal System (PASS) are clearly spelt out are not. Statement No. 12% employees strongly agreed .

No. 1% of employe felt performance appraisal should be conducted once a month. 1 2 3 4 5 Rating Once a week Once a month Every 3 moths Every 6 months Once a year Total Respondents 0 1 15 55 29 100 Percentage 0 1 15 55 29 100 Interpretation The above tabular form explains how often should the Performance Review should take place. Statement No. 10 .Tabulation Format Sl. 15% of employees felt performance appraisal should be conducted every 3 months. but most of employees felt performance appraisal should be conducted every 6 months . 29 % of employees presumed that performance appraisal should be conducted once a year. 55% of employees felt performance appraisal should be conducted once a month agreed.

1 2 3 4 Rating Respondents 19 46 32 3 Percentage 19 46 32 3 Total 100 100 Very low average high Very high Interpretation The above table tells Satisfaction level with the current Appraisal System .Satisfaction level with the current Appraisal System Tabulation Format Sl.No. 4% of employees persumed that Satisfaction level with the current Appraisal System Is very low.32 % persumed that it is high and remaining 3% of employees felt very high. Statement No. 46% of emlpoyees felt average. 11 • Do you think 360 degree appraisal system should be implemented at VSP? Tabulation Format .

Sl. 1 2 3 4 Rating Yes No Never sometimes Total Respondents 54 23 23 0 Percentage 54 23 23 0 100 100 Interpretation The above tabulation tells us the employee’s view of implementing a 360 degree appraisal system in VSP. 23% of the employees are disagreed. shows that 54% of the employees are strongly agreed.No.No. 23% of employes persumed never they want to implement 360 degree PAS. 12 performance Appraisal System in VSP provide counseling to low performance Tabulation Format Sl. 1 Yes 2 no 3 partially Rating Respondents 44 29 27 Percentage 44 29 27 . Statement No.

1 2 3 4 Rating yes no Never sometimes Total Respondents 30 20 9 41 Percentage 30 20 9 41 100 100 Interpretation . 44% of the employees strongly agreed. Statement No.No.Total 100 100 Interpretation The above table shows performance Appraisal System in VSP provide counseling to low performance. 13 training and development program after the performance appraisal Tabulation Format Sl. 27% of the employees are partially agreed with the above statement. 29% of the employees disagreed.

Subordinates. 09% of the employees persumed that they never sent to any training and 41% employees are felt they have been sent to training and development program after the performance appraisal . and customers should be included in Appraisal system • Regular feedback to employees is required that guides and encourages them in their growth and career progression • Proper Training is needed for appraisal. 20% of the employees agreed.The above tabulation tells that training and development program after the performance appraisal is recommened. • Peers. SUGGESTIONS FOR A BETER PERFORMANCE APPRAISAL SYSTEM • Employees should get involved in the performance appraisal process and self-evaluation of employees should be there. 30% of the employees strongly agreed. • There should be transparency in discussing the appraisal report for the development of workforce. . • An appreciation for good performance and proper guidance for improvement is a must.

Surprised by this result. an attempt was made to integrate this though in performance appraisal system. who actually are participants in the system. career growth etc and PAS designed to provide the key inputs that all the above need to be activated. do feel that this system is not very effective. But.SUMMARY The “quality” revolution has changed the ways in which many organizations operate. like performance based recognition. the drive to provide better quality and to satisfy external and internal customers has been activated. So. an attempt was made to analyze the REASON FOR DISSATISFACTION of executives towards their performance appraisal system. when this study is completed the result / conclusion showed that the employees. looked “fool-proof’ and well designed to suit the quality genre. competencies to handle future / current job. To bring this about many activities are to be initiated. They are: • Mostly this system is not helping the person to assess his capabilities the assessment is mostly dependent upon the obedience with his boss. With global competition. Visakhapatnam Steel Plant executives performance appraisal system mainly aims at a “Result Oriented executives”. in the first instance. for it has integrated in itself some wonderful concepts. . the drive to sincerely appraise one’s own self is lacking. • Self-assessment does not carry enough weightage. Their system of appraisal. • Potential review is integrated in the PAS but potential being the capability to take up the future job cannot be judged by the performance on the present job. At Visakhapatnam Steel Plant.

none of the above reasons identified are so damaging that they cannot overcome. • While going through the analysis it seems that a good number of people are uncertain about each questions asked to them which clearly shows that there must be some fault existing in the system which should be recognized and overcome. • A good number of employees are not satisfied with the assessment by the Reporting Officer and Reviewing Officer and they like to know the final grades awarded to the employee by the PRC which is the final one. • The employees are assessed by a team of appraisers. However. which do not cater to all the employees. Peers and Customer assessment would be good but in present PAS only supervisor assessment identifies training needs of the employees. being designed. • Subordinates feedback is truly absent in PAS which can give effective evaluation in employee inter personal skill. who are their superiors. The problem here is that there is no regular interaction with the appraises. • Employees feel that filling the application form is a routine job at the procedure and method should keep on changing time to time. there would be a little or no commitment at all. which may give a rating which can be mostly subjective. And as employees perceive that the training they asked for is not being provided.• Training needs identified through self-assessment. Subordinates. This indirectly is resulting in training programmes. With slight changes in appraisal format and rating pattern the problems would be mostly solved. .

With the above finding the Visakhapatnam Steel plant can undergoes 360 degree Appraisal system with maximum respondents of the employees are willing for the best appraisal system which can give them better working environment in the environment. Appraisal of performance proceeds in a set of pattern. promotion. the step involved are defining appraisal objectives. with better pay. those are modern and tradition method. and to give pay increase.CONCLUSION Performance Appraisal system is very important to assess training needs to effect promotions. FACTOR TO BE INCLUDED INTO THE PRESENT CRITERIA FOR PERFORMANCE EVALUATION: . establishing job expectations. There are two methods in performance Appraisal system. etc. designing the appraisal programmes conduction performance interview. with better skill development. and using appraisal data for different HR activities.

informal appraisal: Formal appraisal: In is usually occurs at specified time periods once or twice a year. • Extraordinary occurrences • Problem solving skills • Productivity of work-output • Attitude towards work • Behavior and health • Efficiency • Capability to take up higher responsibility Format vs. employee problems are identified and discussed from time to time which helps him improve his performance. Reasons why performance appraisal does not form a proper basis for decisions regarding promotions: . Formal appraisal most often used for primary evaluation.• Quality assignment of the work done • Disciplinary / administrative lapses. the supervisor whenever feels the need. In Formal appraisal: It occurs whenever the supervisor feels the need for communications. It is required by the organization for the purpose of employees evaluation. informal appraisal’s very helpful for more performance feedback. discuses performance change in he employee’s work which helps in developing better interpersonal relations and develops a positive environment. However.

self. 360 degree performance appraisal / feedback is an evaluation tool that utilizes opinions of many different people that interact with the employee on a routine basis. the peer group. SUPERIOR: . supervisors ask employees to identify the key accomplishments they feel best represent their performance in critical and non-critical performance elements. subordinates & customers. and job-related competencies. and the customers. Abilities.This form of performance information is actually quite common but usually used only as an informal part of the supervisor-employee appraisal feedback session. where the feedback is collected form all around – the employee.• Biased evaluation is not a proper indication of an employee’s performance standards. • Manipulation. The evaluation is very comprehensive in terms of the employee’s skills. It generates more accurate feedback by gathering information from people about individual’s performance as seen by the organizational structure & expectations of their boss. • Reliance on seniority rather than on performance for performance standards. the superiors. • 360 degree Performance Appraisal System as the best forms of evaluation one’s performances: This is a new concept in performance appraisal. peers. the subordinates.Evaluations by superiors are the most traditional source of employee feedback. styles. SELF ASSESMENT: . This form of evaluation includes both the ratings of individuals by supervisors on elements in an employee’s performance plan and the evaluation of programs and teams by senior managers. Supervisors frequently open the discussion with: “How do you feel you have performed?” In a somewhat more formal approach. In a 360-degree approach. if self-ratings are going to be included. . impression. ides and deludes scan damage the credibility of the appraisal. structured forms and formal procedures are recommended.

An upward-appraisal process or feedback survey. A formalized subordinate feedback program will give supervisors a more comprehensive picture of employee issues and needs. as well as the increasing use of teams and group accountability. SUBORDINATES: . This feedback can then be used as part of the appraisal for each member of the team. Staff members become more inclined to consider factors beyond HOD’s expectations when exhibiting behaviors & striving for results. Easy to implement Steps of implementation: . Each Dept. • Team based culture can be a catalyst for attaining organizational objectives. • It increases focus on customer service & reinforce TQM & continuous process improvement programs. peers are often the most relevant evaluators of their colleagues’ performance.PEERS: .The value of customer service feedback is most appropriate for evaluating team or organizational output and outcomes.With downsizing and reduced hierarchies in organizations. This system has the following advantages: • 360 degree feedback determines relationship between strategic plan/vision of institute & performance expectations. The feedback from subordinates is particularly effective in evaluating the supervisor’s interpersonal skills. CUSTOMER: . Following lacunas come out Inflexibility Lack of initiative Inappropriate leadership style Unwillingness to learn recent technologies. • • • • • • • It detects barriers to success. can use these results to plan departmental training needs. Peers have a unique perspective on a co-worker’s job performance and employees are generally very receptive to the concept of rating each other. Peer ratings can be used when the employee’s expertise is known or the performance and results can be observed.

prejudices. This is because when an evaluation is objective. Follow up Survey. • Ratings are likely to be more acceptable due to employee participation • The use of critical incidents is useful in providing feedback to the employee being rated. Limitations: • It is very consuming and expensive to develop BARS for every job.• • • • • • Design questionnaire Feedback process Evaluation & communication Formation of developmental plans. it minimizes the dysfunctional behavioral of the evaluator. • The method is more reliable and valid as it is job specific and identified observable and measurable behavior. The factors which impede objective evaluations are: . ADVANTAGES: • Ratings are likely to be accurate because these are done by experts. • Behaviors used are more activity oriented than results oriented SHORT COMINGS OF PERFORMANCE APPRAISAL: The ideas approach to performance evaluation is that in which the evaluator is free from personal biases. and idiosyncrasies. which may be detrimental to the achievement of organizational goals.

This type of error occurs when the evaluator rates other people in the same way he perceives himself. • Miscellaneous Biases – Bias against employees on ground of sex. tend to utilize all available information to the utmost extent and thus are better able to perceptually deny anomalies and contradictions than low differentiators” – social differentiation makes evaluations using ‘trait’ criteria unreliable. This error also washes out if the some evaluator appraises all the people in the organization. on the hand. High differentiators. The rater may also be influenced by organizational influence and give higher rating to those holding higher positions. perceiving the universe as more uniform than it really is. a higher rating may be given to a senior employee. or ‘low differentiators’ – that is. depending upon whether the rater’s • Similarity Error . For example. The halo effect refers to the tendency to rate an individual consistently high or low or average on the various traits. race religion or position is also a common error in rating. There is this effect in appraisal when the appraiser assigns the same rating to all traits regardless of an employee’s actual performance on these traits. “Low differentiators tend to ignore or suppress differences. . Pious has classified raters as ‘high differentiation’ – that is using most of the scale.The halo effect – The halo effect is a “tendency to let the assessment of an individual one trait influence the evaluation of that person on other specific traits”. • Social differentiation – Rating is sometimes impeded by the evaluator’s style of behavior. using a limited range of the scale.

• The appraisal programmed should be less time-consuming and less only. while the latter as ‘negative leniency error’. The halo effect problem can be alleviated by: • Providing a training programmer to the evaluators. some supervisor have a tendency to be liberal in their rating. The tendency can be avoided by holding meeting or .Every evaluator has his own value system which acts as a standard against which he makes his appraisals. • Leniency or Strictness tendency . • The supervisor should analyze the strengths and weaknesses of the employee and advise him.• Spill Over Effect – This type of error occurs when past performance rating influences the current rating. STEPS FOR MAKING APPRAISAL SUCCESSFUL • Existence of an atmosphere of confidence and trust. that is they consistently assign ‘high values’ to their employees. The former tendency is known as ‘position leniency error’. • The results of performance rather than personality traits should be given due weight. while at other times they may have tendency to assign consistently ‘low rating’. • Restructuring the questions by requiring the evaluator to consider each question independently. This means that the halo effect allows one characteristic. Both these trends usually arise from varying standards of performance observed by supervisors and from different interpretations of what they evaluate in employee performance. Relative to the true or actual performance an individual exhibits. Overall impression of the individual is favorable or not. or occurrence (either good or bad) to influence the rating of all performance factors.

training sessions for raters so that they may understand what is required of them in rating. The right appraisal tools should be chosen to minimize arising problem. It assigns ‘average ratings’ to all the employees with a view to avoiding commitment or involvement. • The results of appraisal should be immediately communicated to the employee. Dear Sir. The ranking tools discussed earlier are aimed at avoiding this problem. • Training can be used to improve the standards of performance appraisal. or when the rater is in doubt or has inadequate information or lack of knowledge about the behavior of the employee. • A post appraisal interview should be arranged. QUESTIONNAIRE Study on performance appraisal system for executives at Visakhapatnam Steel Plant. . • The Central tendency problem – It is the most commonly found errors. or when does not have time at his disposal.

Does Performance Appraisal system helps in assessing competency? a) yes b) no c) sometimes. 6. . Are you happy being associated with Visakhapatnam Steel Plant? a) Strongly disagree b) Disagree c) Agree d) Strongly agree. please tick your choice ( ). Do you agree that performance appraisal system forms proper basis for making decisions regarding promotions and rewards system? a) Strongly disagree b) Disagree c) Agree d) Strongly agree. using the code given below for each statement. Objectives of the Performance Appraisal System (PASS) are clearly spelt out? a) Strongly disagree b) Disagree c) Agree d) Strongly agree. 2. Are any Monetory & Non-Monetory benefits given for outstanding performance? a) yes b) no c) sometimes d) never. 8.B. 5. 3. NAME : EMPLOYEE NO : DISIGNATION: DEPARTMENT : GENDER : a) Male b) Female Below statements have been framed basing on a rating scale. Do you agree that low performance is due to lack of skill? a) Strongly disagree b) Disagree c) Agree d) Strongly agree.I am M. Do you agree that performance appraisal is the right way to asses human potential? a) Strongly disagree b) Disagree c) Agree d) Strongly agree. to spare some of your valuable time to respond to the following questions. 1.Does the performance appraisal help in creating an effective work environment & create positive relationships? a) yes b) no c) sometimes. Your response will be treated as confidential and would only be used for the purpose of my project work only. 7. 4.A (HR) student doing project in Visakhapatnam Steel plant on the “PERFORMANCE APPRAISAL”. I request you sir.

12. Have you been sent to any training and development program after the performance appraisal is done? a) Yes b) Never c) Some times.Do you think 360 degree appraisal system should be adopted by the organization? a) yes b) no c) sometimes d) never. What is your Satisfaction level with the current Appraisal System? a) Very low b) Average c) High d) Very High.9. how often should the Performance Review take place? a) Once a week b) Once a month c) Every 3 months d) Every 6 months. 10. e) Once a year. . Thank you 1. Does performance Appraisal System in VSP provide counseling to low performance? a) Yes b) No c) Partially 13. 11. Are you happy being associated with Visakhapatnam Steel Plant? a) Strongly disagree b) Disagree c) Agree d) Strongly agree. According to you.

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.• 90% of employees are happy being associated with Visakhapatnam Steel Plant and only 10% of employees expressed their dis satisfaction towards their organisation 2. Are any Monetory & Non-Monetory benefits given for outstanding performance? a) yes b) no c) sometimes d) never.

Does Performance Appraisal system helps in assessing competency? a) yes b) no c) sometimes. 56% of employees persumed that organisation is not giving any Monetory & Non-Monetory benefits for outstanding performance. d) never . 33% felt that they are getting Monetory & Non-Monetory benefits and 11 % felt it is sometimes given not always 3.Here.

56% of employees persumed that Performance Appraisal system helps in assessing competency and 38% felt Performance Appraisal system does not help in assessing competency. d) never. 4.Does the performance appraisal help in creating an effective work environment & create positive relationships? a) yes b) no c) sometimes.. .

15% said no. and 24% persumed sometimes. Do you agree that low performance is due to lack of skill? a) Strongly disagree b) Disagree c) Agree d) Strongly agree. . 5.61 % of employees felt the performance appraisal help in creating an effective work environment & create positive relationships .

. Do you agree that performance appraisal is the right way to asses human potential? a) Strongly disagree b) Disagree c) Agree d) Strongly agree.56% of employees felt low performance is not due to lack of skill. it is because of will and 44% of employees felt low performance is just only due to lack of skill 6.

72% of employees agreed that performance appraisal is the right way to asses human potential but nearly 28 % of employees disagreed 7. . Do you agree that performance appraisal system forms proper basis for making decisions regarding promotions and rewards system? a) Strongly disagree b) Disagree c) Agree d) Strongly agree.

76% of employees persumed that performance appraisal system forms proper basis for making decisions regarding promotions and rewards system and 24% disagreed 8. . Objectives of the Performance Appraisal System (PASS) are clearly spelt out? a) Strongly disagree b) Disagree c) Agree d) Strongly agree.

b) Once a month c) Every 3 months d) Every 6 months. 9. . According to you. how often should the Performance Review take place? a) Once a week e) Once a year.75% of employees felt that Objectives of the Performance Appraisal System (PASS) are clearly spelt out and 25% disagreed.

15% of employees 10. 29%of employees said thay want Performance Appraisal once a year. . 56% of employees said that they want Performance Appraisal twicw a year.In visakhapatnam steel plant Performance Appraisal takes place twice in every year.most if the empployees opted the same. What is your Satisfaction level with the current Appraisal System? a) Very low b) Average c) High d) Very High.

46% of employees felt that the performance appraisal is just average. . 35% of employees felt high and remaining 19% persumed their performance appraisal is very low. 11.Do you think 360 degree appraisal system should be adopted by the organization? a) yes b) no c) sometimes d) never.

46% of employees does’nt want to adopt. Does performance Appraisal System in VSP provide counseling to low performance? a) Yes b) No c) Partially d) never . 12.54% of the employees wants visakhapatnam steel plant to adopt 360 degree appraisal system .

Have you been sent to any training and development program after the performance appraisal is done? a) Yes b) No c) never c) Some times.44% of employees said that councelling is provided to low performance.29 % of employees felt it is not provided and 27% of employees who partially agreed. 13. .

BIBLIOGRAPHY . 39% of employees said that they attened training session as recommended.60% of employees said that they never been sent to any training till date .

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