Project Report On Nalco PDF

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A PROJECT REPORT ON
“PERFORMANCE APPRAISAL PROCEDURE”
AT
NATIONAL ALUMINIUM COMPANY LIMITED
(HUMAN RESOURCE MANAGEMENT)
Prepared By:
Surekha Nayak
ROLL NO. 13234V074316
ENROLMENT NO-07/102/316
Under the Guidance Of

MR. S.K JENA
Chief Manager Finance (Nalco)
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CERTIFICATE
This is to certify that the dissertation entitled “PERFORMANCE

APPRAISAL PROCEDURE” at NALCO, Bhubaneswar
being submitted by Surekha Nayak, a student of MBA, DDCE; Utkal
University is a bonafied research work carried out by her under my
guidance and supervision. This dissertation has not been submitted or
published any where before.
Dr. Sarita Mishra

Faculty Management Programmee
Utkal University
Bhubaneswar, Orissa.
DECLARATION
I Miss Surekha Nayak, do here by declare that dissertation titled
“PERFORMANCE APPRAISAL PROCEDURE” at

NALCO, Bhubaneswar submitted by me to the DDCE; Utkal
University as a part fulfillment of the award of the Master´s degree of
Business Administration is my own Research work.
This project embodies the findings and observation of my study

and has not been submitted to any other institution/ university or
published at anywhere before.
Date Surekha Nayak

ACKNOWLEDGMENT
I would like to express my profound sense of gratitude and heartful

thanks to my guide Mr. Manoj Kumar Mohanty (Asst. Manager(H.R.D))
for her constant encouragement guidance without which this
Dissertation.
I am highly thankful to my esteemed faculty Prof. S.K. Tripathy for

her constant encouragement, inspiration, valuable advice & most scholar
guidance in conducting this study & preparing the project work.
Special vote of thanks Mr. Subas Chandra Jena, Asst. General

Manager (HRD). Kindly permitted me to carry on this project and for her
expert suggestions and support.
I further extend my deepest gratitude to other people working in the

OHPC. Ltd. For their support in several ways which made possible to
complete this study in time.
Lastly I would like to thank to my family and friends for their

constant support and encouragement to complete my dissertation work.
Surekha Nayak
CONTENT
CHAPTER – 1
• INTRODUCTION
• AIMS AND OBJECTIVES
• SCOPE
• LIMITATION
• METHODOLOGY
CHAPTER – 2
• THEORITICAL ASPECT OF PERFORMANCE APPRAISAL
CHAPTER – 3
• COMPANY PROFILE
CHAPTER – 4
• HUMAN RESOURCES AT NALCO
CHAPTER - 5
• PERFORMANCE APPRAISAL AT NALCO
CHAPTER – 6
• DATA ANALYSIS
• FINDINGS
• RECOMMENDATIONS
• CONCLUSION
CHAPTER -7
• ANNEXURE
• BIBILIOGRAPHY
CHAPTER - 1
CHAPTER-1
INTRODUCTION:
Today, business has grown to be very complex and dynamic. In today’s world
business has to face a number of challenges. The important fields in business like market
,technology, composition of workforce ,attitude and expectation of customers are changing
very rapidly. Due to all these factors an organization has to take a fresh look at their different
functional areas to modify and improve the kind and style of management so as to reach its
goals easily. there has to continuously and effective modification in the management policies
due to the market functions. An organization consists of four important resources such as
man, money, materials and machinery. The success and failure of an organization depends
upon the effective combination and use of these resources. However the principle component
of an organization is its “people”, or “manpower”, or “human resources”, which plays a vital
role in the success of an organization. So, the management should take the right step at the
right time for improving and developing of these pervasive and never ending resources.
PERFORMANCE APPRAISAL:
Performance appraisal is a systematic evaluation of performance and potential of an

employee for improvement. For an individual it is the means of telling the employee how is
he/she is performing and suggesting the change needed in his behaviour, attitude, skills.
Appraisal are objectives judgement of characteristics, traits, and performance of personnel by
his immediate superior. Appraisals are also essential for making such administrative decision.
performance appraisal provides valuable information for personnel decisions such as pay
increases, promotions, demotions, transfers and terminations. It helps to judge the
effectiveness of recruitment, selection, placement and orientation systems of the organization.
It is useful in analyzing training and development needs. Its main objective is to provide a
valid database for personnel decisions concerning placements, pay, promotions, etc. it also
helps in developing positive superior-subordinate relations.
Performance appraisal promotes a positive work environment which contributes to
productivity.
AIMS & OBJECTIVES:

Performance appraisal has been considered as most vital and indispensable system for
an organization . In an organization it provides highly useful information in making decision
regarding various personal aspects such as promotion and other administrative decision.
It is an aid for creating and maintaining satisfactory level of performance by employee

on their present job . The primary objective of the study is to study about the existing
performance appraisal system of NALCO.
In the light of the above objective the following are the various sub-objectives framed :
 To find out the impact of “performance appraisal” on workman and management.

 To find out whether present appraisal system is favourable and beneficial to the
employees.
 To find out the methods followed by the organization in evaluating the performance of
their employees.
 To find out whether this system brings uniformity in the increasing productivity and
welfare of the organization.
SCOPE:
The study focuses on the existing performance appraisal system of NALCO. The study
covers the performance appraisal system for execution of part of corporate office NALCO.
The views of the executives were taken through primary as well as secondary source.
METHODOLOGY:
NALCO being a industrial establishment , researcher collected the opinions in the
random sampling method .NALCO depends upon the conservation , advancement &
utilization of its workforce. To conduct any research a scientific method must be followed.
Thus the coverage of the performance appraisal center &other activities are natural. It is so
vast that to have a detail study of the entire NALCO’s population was not possible .
Therefore for the purpose of the primary data the researcher has to rely on questionnaires to
collect information will be comprehensive for the study. The questionnaires were distributed
personally among the respondents and was collected by an informal discussion to get the
maximum information about the collected data. In practice it is very difficult to collect
information from all the executives .
SAMPLE SIZE:
For the administration of questionnaire in NALCO the management has given the
opportunity to collect the information only from 50 employees . so random sampling methob
is adopted in order to conduct the study.
SOURCES OF COLLECTION:
There are two sources of data necessary for each study .The two sources are primary
source & secondary source .The primary sources includes books ,journals etc & the secondary
sources are the companies records, performance appraisal reports, questionnnaires, journals &
other company publications.
PRIMARY DATA:
Primary data is collected by discussions with various executives, managers and
supervisors. A questionnaire was prepared and a total of 50 employees were approached and
the questionnaire was administrated on them and their perception was collected.
SECONDARY DATA:
• NALCO records
• Annual reports
• Company profile
• Journals
CHAPTER - 2
CHAPTER – 2
THEORITICAL ASPECT OF PERFORMANCE APPRAISAL
Appraisal of performance is widely used in the society. Since then tremendous change have
taken place in the concept, techniques and philosophy of the employees appraisal.
Performance evaluation or performance appraisal is the process of assessing the performance
and progress of an employee or a group of employees on a given job and his potentials for
future developments. It consists of all the formal procedures used in the working
organizations to evaluate personalities, contributions and potentials of employees. But strictly
speaking the aspects of performance appraisal is wider in terms than merit rating. In merit
rating the focus is on judging the caliber of an employee so as to decide salary increment. It is
designed primarily to cover rank and file personnel. On the other hand performance appraisal
focuses on performances and overall development of the employee. Its aim is not simply to
decide salary increments but to develop a rational basis for personal decisions. The several
decisions of performance appraisal followers the set pattern and it consists of establishing
standards, communicating those standards, measuring the performances, comparing the actual
performance with the standard performance, discussing the appraisal with the employees ,
taking corrective action
Performance Appraisal.
Appraisal of perforniance is widely used in society. Parents evaiuate their chiidren,
teachers evaiuate their students and employers evaiuate their employees This early appraisal
system was called merit rating. In the early fifties, performancc appraisal techniques began to
be used for technicai, professional and managerial personnel.Performance appraisal is the
process of assessing the peribrmance anj progress of an. employee or of a group of
employees on a given job and his potential for future development. It is the systematic,
periodic and an impartial reting of an employee's excellence in matters pertaining to his
present job and his potential for a betler job.
Objectives
 To provide feedback to ernpioyees.
 To provide a valid database for personnei decissions concerning Placements. Pay,

Promotion, Transfer, Punishment etc.
 To diagrase thc strengths and weaknesses of individuals for further training needs.
 To provide Coaching, Counselling, Carrier pianning and motivation to

subordinates.
 To develop positive superior- subordinate relations.

Uses
 Performance Appraisal provides valuable information for personnel decissions

such as pay increases, promotions, demotions, transfers and terminations.
 It helps to judge the effectiveness of recruitment, selection, placement and

orientation systems of the organisation.
 It is useful in analysing training and development needs.
 It promotes a positive work environment which contributes to productivity.
Appraisal records protect management from charges of discrimination levelled by

trade uniorn leaders. Employee grievances can be reduced.
Process
 Establishing performance standards.
 Communicating the standards.
 Measuring performance.
 Comparing the actual with the standards.
 Discussing the appraisai.
 Taking corrective actions.
Several methods and teachniques åre used for evaluating employee performances. Along
with the traditional methods, now modern methods also came into use for evaluating the
performances. They are as shown :
PERFORMANCE APPRAISAL
TRADITIONALMETHODS MODERN METHODS

01 Confidential Report
01. Assessment Centre
1 Free form or Essay
2 Starigth Ranking 2. HumanResource
3 Paired Comparisons
Accounting
4 Foreed Distribution
3. BARS
5 Graphic Rating Scales
6 Check List method 4. M B O
7 Critical Incidents
5. 360°appraisal
8 Group Appraisal
9 Field Review
The different traditional methods are as follows:
1. Straight ranking method:
It is the oldest and simplest method of performance appraisal. Here the ranking of one
employee in a work group is done against that of another. Employees are ranked from the best
to the poorest on the basis of overall performance. The relative position of an employee is
reflected in his numerical rank. This method is time saving and a comparative evaluation
technique of appraisal.
2. Paired comparison method:
This is a modified form of man to man ranking. Here each employee is compared with all
others in pairs one at a time. The number of times an employee is judged determines his rank.
3. Confidential report:
This is a traditional form of appraisal used in most government organizations. It is a report

prepared by the employees immediate superior. It covers the strengths and weaknesses, main
achievements, failures, personality and behaviour of the employees. It is descriptive appraisal
used for promotions and transfers of the employees.
4. Free form or Essay method:
Under this method, the evaluator writes a short essay on employees performance on the
basis of overall impression. The description is expected to be as factual and concrete as
possible.
5. Forced distribution method:
In this technique the rater is required to distribute his ratings in the form of normal
frequency distribution. The purpose is to eliminate the rater biased of central tendency. Here
also ranking technique is used.
6. Graphic rating scales:
It is a numerical scale indicating different degrees of a particular trait. The rater is given a
printed form for each employee to be rated. The form contains several characteristics relating
to the personality and performance of the employees. The rating scale method is widely used
as it is easy to understand and use.
7. Check list method:
A check list is a list of statements that describe the characteristics and performance of
employees on the job. The rater checks to indicate if the behavior of an employee is positive or
negative to each statements. The performance of an employee is rated on the basis of number
of positive checks.
8. Critical incident method:
In this method the supervisor keeps a written record of critical (either good or bad) events
and how different employees behavrd during such events. The ratings of an employee depends on
his / her positive / negative behaviors during these events. These critical incidents are identified
after thorough study of the job and discussion with the staff.
9. Group appraisal method:
Under this method group of evaluators assess employees. This group consists of the
immediate supervisor of the employee, other supervisor having close contact with the employee’s
work, head of the department and personnel experts. The group determines the standards of
performance of the job., measures the actual performance of an employee, analysis the cause of
poor performance and offers suggestions for improvement in future.
10. Field review method:
In this method a training officer from the personnel department interviews line supervisors
to evaluate their respective subordinates. The interviewer prepares in advance the questions to
be asked. By answering these a supervisor gives his opinions about the level of performance of
his subordinates, their work progress, his strengths and weaknesses, promotion potentials etc.,
the evaluator takes detailed notes of the answers which are then approved by the concerned
supervisor. These are then placed in the employees personal service files.
The modern methods of performance appraisal:
The most effective of all the modern methods of performance appraisal is

“MANAGEMENT BY OBJECTIVES”. This concept was developed by Peter Drucker in
1954. since then MBO has become an effective and operational technique of performance
appraisal and a powerful philosophy of managing . MBO has been defined as a “ process
whereby the superior and subordinate managers of an organization jointly identify its common
goals, define each individuals major areas of responsibility in terms of result expected of him
and use these measures as guides for operating the units and assessing the contributions of
each of its members”.
MBO process:-
The main steps involved in performance appraisal through MBO are as follows:
• Set organizational goals
• Defining performance targets
• Performance reviews
• Feedback
The advantages of this goal setting approach are:-
• MBO helps to avoid role ambiguity and role conflict
• MBO provides objective criteria for evaluating performances.
• MBO provides active participation of subordinates in goal setting and performance

reviews helps to satisfy ego and self actualization needs.
• MBO helps in developing management. It is a problem solving tool.
• MBO leads to coordination, harmony between objectives at different levels.
Thus the theoretical aspects of performance appraisal are noteworthy in determining the
potentials, personality, confidence of an employee overa
CHAPTER-3
CHAPTER - 3
Company profile
HISTORY OF NALCO:
The story of NALCO is deep routed in the bound and benevolence of benign mother earth
and in the indomitable spirit of man. The years of unseen and unsung quest of prospectus in the
hostile wilder leads to a momentous discovery of over one thousand million ton bauxite reserve in
1975. the country is pushed up to the 5th rank in the world resources graph, with a total estimated
reserve of 2900 million ton.
The government of India on 28th march, 1978 authorizes aluminium pechinery of France to
prepare a feasibility report on industrial exploitation of bauxite for establishment of an integrated
aluminium complex. Feasibility study focus on panchpatmali, 30km east of koraput in orrisa and
130km north of vizag port, containing the single largest deposit of 310 million ton of bauxite of
unquestionable potential.
In may 1980, Bharat Aluminium Company limited the forerunner in public sector
aluminium industry, puts forth the orissa aluminium complex proposal to the government of India.
The govt takes the investment decision on 1st November 1980. Thus, NALCO, truly and national
venture to take the country forwarding the world aluminium market, a unique product of judicious
deliberations and prudent planning gets incorporated on 7th Jan 1981. yet another saga of human
enterprise begins as time moves on to create new patterns of sweat and success.
On 9 January the newly founded NALCO signs an agreement of collaboration for latest
technology know-how and basic engineering with aluminium pechinery the world leader to set up
Asia’s largest integrated aluminium complex.
Flurry of project activities follow in the months to come, NALCO establishes unique
landmarks in the history of project management in Indian industry despite difficult project
logistics and multiplication sites. NALCO goes into production in a phased manner, starting from
1985.
The complete and firm reliability of project of financing was another hallmark. The total
capital cost of rs2408 was partly financed by a rs1119 crore equivalent Eurodollar loan raised
through a consortium of international banks and the balance rs1289 crore coming in from the
government of India plan funds.
Thus, NALCO heralded a new era of aluminium making of world standard aluminium
products. Time moves on. NALCO takes bold initiatives to enter the export market, gets LME
registration for its products acquires ISO certification units pre-pays overseas debts, receives
awards, recognitions, and accolades for continuously improved performance on all fronts.
As NALCO enters the 25th year of its existence in 2005, a national asset worth above
rs10000 crore gets created out of an initial investment of rs2408 crore while yielding rich
dividends for the country, for the state and for people at large. Thus, NALCO’ s success story
continuous
Nalco Overview
Incorporated in 1981, as a Public Sector enterprise of the Government of India
National Aluminium Company Limited (Nalco) is Asia's largest integrated aluminium
complex, encompassing bauxite rnining, alumina refining, aluminium smelting and casting,
power generation, rail and port operations.
Commissioned during 1985-87, under extremeSy difficult logisties of project
management, that too without time or cost over-runs. Nalco has emerged to be a star
performer in production and export of alumina and aluminium and more signitlcantly, in
propelling self-sustained growth.
Leveraging the technical collaboration with Aluminium Pechiney of France. ISO 9000:
2001 certification of quality management, LME registration of products, environment
care conforming to ISO 14001, iow cost operations. international customer base, Nalco
has continued to add value and is posed to grow further.
Transparent and successfijl operations of Nalco, as well as its contributions. have brought
about remarkable socio-economic progress in the two underdeveloped districts of
Orissa, where the company's plant and facilities are located.

01. Technical Features
 Bauxite Mine,
Panchpatmali, Orissa,
48,00,000 tpa
 Fully mechanised open cast mines with computerised mine planning.
 370 million tonnes deposit estimated
 14.6 kms - long single - flight multi corve
 1 800 tph capacity computerised conveyor system for transportation of Ore.
02. Alumina Plant

Damanjodi, Orissa,
15, 75, 000 tpa
 Atmospheric pressure digestion process
 Energy efficient fludised bed calciners
 Co-generation of 3 X 18.5 MW power by back pressure turbines from process

steam.
 Integrated facilities for manufacture speciality aluminas, Hydrates and Zeolite.
03. Aluminium Plant,

Angul, Orissa,
3, 45, 000 tpa
 Advanced 1 80 KA Cell Technology
 Micro - Processor based Pot-Regulation System
 Fume ireaimeni wiih dry-scrubbing system
 Integrated annode making , aluminium casting and rolling facilities.

04. Power Plant,

Angul, Orissa,
960 MW
 Micro-processor based burner management.
 Automatic turbine run up system
 Specially designed high pressure boilers
 Advanced electrostatic precipitators.
05. Port Farilities,

Vizag,
Andhra Pradesh.
 For export of Alumina and Import of Caustic Soda Lye
 Mechanised storage facility of 3 x 25, 000 T capacity
 Mechanised Mobile Ship loader of 2200 tph capacity.
 Capacity to handle ships up to 35000 DWT.

Nalco Products
CALCINED ALUMINA
Product Code : C A 10
Chemical Formula: AL2O2
Type ; Sandy - coarse

Physical Properties Typical Range
LOI (300-1000 C) % - 0.5-1.0
BET Surface Area (m2/gm) - 60-80
Alpha Alumina Content %
- 10 Max
Granulometry :
+ 125 Micron (%)
Bulk Density (T/M3) - 15 Max
10 12 max
- 0.95-1.05
ALUMINA HYDRATE
Product Code : AH 10
Chemical Formula:
Appearance: While
Physieal Properties Typical Range

LOI (110- 1000° C) % 34 -36 36 max
Moisture (%) 3 -6 8 max
Granulometry
- 45 Micron (%) 3 -6 7 max

ALUMINIUM
INGOTS/SOWS
General Composition
High Purity -99-8% General conforming to IS- 19800AA
(min.) 1080
Pamary aluminium with min. purity of 99.7%Fe
LME Grade-99.7% (min) = 0.20% max. SL= 0.10% Max. or conforming
to P1020A specifications
For fabrication of electric conductors and other
EC Grade- 99.5% (min.) electrical purposes generally containing to IS-
4026
ots with Fe/Sl ratio adjustmentfar electrical conductors can be pmduced an specific requirement.
WIRE RODS
Wireproduct from Properzi Continuous Casting and Rolling process are available in nominal
dia size of 0.5 11.95 mm in coil forms.
Coil Dimension & Weight Specifkations
ID : 760 mm Product (Code) Electrical

Conductivity % IAC
mmD : 1520 S
EC Wire Rod (WE 61.500
Height : 850 mm
61.00 to 61.499
10/12)
Weight : 2000 Kgs (approx.) <61.000
WC Wire Rod
ALLOY INGOTS
Product Code SI % Fe % Mg % Cu % Alloy
Equivalent
IA 10 9-11.5 1 max 0.3 mac 0.7-2.5 LM 2
IA 20 1-6 0.8 max 0.15 2-4 LM 4
IA 30 10-13 0.6 max 0.1 max 0.1 max LM 6
IA 40 8-9.5 1 max 0.3 max 3-4 LM 24
IA 50 11-12.5 0.5-0.7 0.05 max 1.5 -3.5 ADC 12
ALUMINIMUM BILLETS
Nalco has 30,000 tpy Hot Top Maxi Cast Billet Casting world-class billet casting
technology provides distinct advantages in p rock; superior quality DC Cast Aluminium
Billets in solt and hard a!!o input for manufacture of high quality extrusions.
Diameter : 127 mm + 1.5 mm 178 mm+1,5 mm

52 mm ±1.5 mm 203 mm + l .5 mm
Length : 400 mm to 5800 mm wiih a tolerance of 5 mrn for for every 1000
mm lengthor part there of
Squareiiess : l mm max. per 100 mm diameter.
Bow : 2 mm per meter with 10 mm max. Per log.
ALUMINIUM CAST STRIPS
DIMENSIONS :
1. Strip Width (Trimmed) (i) 950 to 1600 mm for Alloy i000 series
(ii) 1270 to 1480 mm for Alioy AA8011 series
(iii)1220 mm (max.) for |Alloy 3004 and 5000
2. Strip Gaugge series

(i) 6 to 8 mm for 3000,5000 7 8000 series (ii) 6 to 10
3. Coil Outer Dia (max) mm for 1000 series
4. Coil Inner Dia (max.) 1900 mm 610 mm O to 2.00% (Positive crown
5. Crown (max.) only)
(EDGE-CE NTRE-EDGE)
TOLERANCES :
1. Strip Thickness : 0.2
2. Strip Width : +4mm
3. Teiescopicity of the coil

GLOBAL PRESENCE:
MARKETING
Alumina andl Chemicals
A quantity of 9,09,081 MT of Alumina and 424 MT of spe-exported to various overseas

buyers and 26,220 MT of alumina/hydrate v\ in the demistic market.
Aluminium
The eompar.y achieved the highcst ever total metal sale highest ever domestic
sale and the highest ever export metal sale.
Faridabad Stock Yards was re-opened and Silvassa Stock Yards w: during the year besides
having regular sales activity from other Bhiwandi, Jaipur, Kolkata, Vizag and Bangalore,
Alumina
During the year 2004-2005 the World consumption of Alumina million MT ?g?.inst World
productior. of 57.905 million MT showing a d( 0.0251 million MT.
Aluminum
During the year 2004-2005 the World consumption of1 primary al was 30.320 million MT
against World suppiy of 29.844 million MT. shov deficit of 0.477 million MT.
The world supply and consumption grew by 6.6% and 9.3% consumption is estimated to
have risen by 17% and production demand from USA, Europe, Brazil, China and South
Korea helped streng! international nrices durine the vear.
PROFIT DURING LAST FIVE YEARS
1600
1400
1200
1000
800 PROFIT
600
400
200
0
2001- 2002- 2003- 2004- 2005-
02 03 04 05 06
PRODUCTION OF ALUMINIUM DURING LAST FIVE

YEARS:
400
350
300
250
PRODUCTION
200
3-D Column 2
150
3-D Column 3
100
50
0
2001-02 2002-03 2003-04 2004-05 2005-06
EXPORT OF ALUMINIUM DURING LAST YEARS:
200
150
EXPORT
100
DOMESTIC SALE
3-D Column 3
50
0
2001-02 2002-03 2003-04 2004-05
MAJOR ACHIEVEMENTS:
 First mines safety award: March 1998
 CAPEXIL export award: 1988 to 1999

(12 times )
 LME registration: May 1989
 STAR TRADING HOUSE status: January 1992
 ISO 9002 certification:
 Alumina refinery: November 1994
 Smelter plant: February 1995
 Captive power plant: December 1995
 Bauxite mines: January 1996
 CITD special gold award: September 1994
 Best exporter’s award: November 1994
 Safety award for eco-friendly factory: march 1995
 Rajiv Gandhi memorial national award: july 1996
 Indira priyadarshini vrikshamitra award: September 1996
 Environment management certification to ISO: September 1996
 Engineering export promotion council(EEPC)award: December 1996
 Environment management certification to ISO: February 1997
 Best annual report prize by public sector public relation forum: august 1999
 Prestigious IIC India limited award: december 1999
 Shram vir award received by sri dolu patra senior technician of NALCO from
former prime minister sri atal bihari vajpayee: February 2000
 five technologists of NALCO received united nations intellectual property

organization (WIPO) gold medal for development of process technology for
manufacturing detergent grade zeolite: may 2000
 special safety award by directorate of factories and boilers: march 1997
 Fuel conservation award for M&R complex by CII eastern region: june 1997
 first dispatch of special grade alumina from SGA pilot plant: july 1997
 Independence day award 97 to NALCO scientists for the process invention by

national research development corporation(NRDC): august 1997
 FICCI award on environment conservation and pollution control for the year 1996-
97: nov 1997
 Indian institution of industrial engineering award for performance excellence 1996-

97: Nov 1997
 Environment protection award by institute of ecology & environment, New

Delhi: dec 1997
 Environment management certification to ISO-14001: dec 1997
 Best occupational service award to damanjodi unit: march 1998
 All India industrial promotion INDEPENDENCE GAURAV AWARD: may 1998
 Selected for GEM granite environment award for the year 1997-98 by the
federation of Indian mineral industries(FIMI):
july 1998
 Selected for rungta social service award for the year 1997-98: july 1998
 Honoured with united nations world intellectual property organization:
THE NON-EXECUTIVES PAYSCALES:

PRE-REVISED REVISED
Scale code Pay scale Scale code Pay scale
U1 2100-40-2660/- W1 4400-3%-7950/-
U2 2140-45-2455-50-2805/- W2 4650-3%-8400/-
U3 / T0 / P0 / M0 2190-50-2540-55-2925/- W3 / T0 / P0 / M0 4925-3.5%-9150/-
U4 / T! / P1 / M1 2250-60-2670-65-3125/- W4 / T1 / P1 / M1 5325-3.5%-9890/-
U5 / T2 / P2 / M2 2320-70-2810-75-3335/- W5 / T2 / P2 / M2 5725-3.5%-10635/-
S0 / T3 / P3 / M3 2400-80-2960-90-3590/- S0 / T3 / P3 / M3 6125-3.5%-11490/-
S1 / T4 / P4 / M4 2500-95-3165-105- S1 / T4 / P4 / M4 6625-3.5%-11490/-
3900/-
S2 / T5 / P5 / M5 2620-105-3355-115- S2 / T5 / P5 / M5 7225-3.5%-12530/-
4160/-
S3 / T6 / P6 / M6 2800-120-3640-130- S3 / T6 / P6 / M6 8000-3.5%-13400/-
4550/-
S4 / T7 / P7 / M7 3050-130-4090-140- S4 / T7 / P7 / M7 8550-3.5%-14325/-
5070/-
THE EXECUTIVE PAYSCALE IN VOGUE:

DESIGNATIONS CODES REVISED W.E.F 01/01/97

ASST. ENG/ASST OFFICER E0 8600-4%-14600
Jr. mgr / medical officer E1 11225-4%-17525
Asst mgr / sr. medical supdt E2 13750-4%-18300
Dy. mgr / asst medical supdt. E3 16000-4%-20800
Mgr. / dy. Medical suptd. E4 17500-4%-22300
Sr. mgr. / medical supdt E5 18500-4%-23900
Chief mgr / chief medical sup. E6 19000-4%-24750
Dy. general manager (DGM) E7 19500-4%-25600
General manager (GM) E8 20500-4%-26500
Executive director (ED) E9 23750-4%-28550
ORGANISATION CHART
BOARD OF DIRECTORS
BOARD OF DIRECTORS
MANAGING DIRECTOR
DIRECTOR DIRECTOR DIRECTOR DIRECTOR CVO DIRECTOR

FINANCE PRODN (P&T) (P&A) COMPUTER
GM(FIN GM(HR GM(A ED

) GM(P& D) &CC) (COM
ED(S&P
T) P)
)
GM (GM
(CPP) MKTG)
GM
(H&A)
GM
(FIN)
GM
(MAT)
GM
(PROJ)
CHAPTER-4
CHAPTER-4
HUMAN RESOURCES AT NALCO

HUMAN RESOURCES:
About 7426 persons possessing a variety of skills, qualifications and competence
are at the services of NALCO. NALCO is truly youthful with the average age of the
employees being below 40yrs.Starting with a core group of 262 employees in 1982, the
progressive growth in manpower has taken place in a planned manner matching the needs
of the different stages of the project.
The categories of manpower in NALCO are executives and non-executives.
NON-EXECUTIVES:
 HIGHLY SKILLED:
The employees who are technically / professionally educated and trained generally
hold supervisory positions. Diploma engineers get direct entry in to supervisory
positions .other employees enter supervisory positions through the departmental
promotion channels. Employee groups in grade codes such as
S0,S1,S2,S3,S4,T3,T4,T5,T6,T7,P4,P5,P6,P7,M3,M4,M5,M6,M7 are highly
skilled groups.
 SKILLED:
These are mostly the employees with graduation/ITI/paramedical qualifications.
T0,T1,T2,M0,M1,M2 group of workers are coming under this category.
 SEMI-SKILLED AND UNSKILLED:
These are the employees normally having below matriculation level or non ITI
qualifications or even illiterates. The grade codes of W1,W2,W3,W4,W5,W6 come
under this category.
EXECUTIVES:
This category of employees are usually qualified with degree in engineering/medical or
with professional qualification like MBA, CA ,AICWA or other management degrees.
diploma engineers ,post graduate degree ,general degree holders also occupy lower
management positions by way of departmental promotions. Employees with grade codes
E0 to E9 come under this category.
MANPOWER POSITION OF NALCO AS ON 31 MARCH 2007.

SL CATEGORY NO IN
N POSITION
O
1 EXECUTIVES 1745
2 SUPERVISORS 892
3 SKILLED/HIGHLY 2405
SKILLED WORKMEN
4 UNSKILLED/SEMI- 1145
SKILLED WORKMEN
5 TOTAL 7426
2500
2000
EXECUTIVES
1500
SUPERVISORS
1000 SKILLED/HIGHLYSKILLED
UNSKILLED/SEMISKILLED
500
THE STRUCTURE OF HRD& ADMN DEPARTMENT OF

NALCO:
DIRECTOR (P&A)
GM( GM GM GM GM
HRD (A&C (L& H&A-S&P H&A-M&R
) C) C)
DGM DGM DGM DGM DGM DGM

H&A HRD MS H&A- IECO MSCO
CPP CS S&P M&R
CM CM CM CM
SR MGR (HRD) (H&A) HRD ADMN
HRD CPP SMLT SMLT S&P
SR MGR
HRD-TRG
S&P
MGR MGR DM
HRD HRD HRD
CL IR&WE ESTT
LFARE
DM MGR
HRD- HRD AM(HRD)
TRG TRG JM JM(HRD)
HRD AO(HRD)
AM
HRD
TRG
JM
HRD
Human Resources importance:
 To attrAet competent personnel with growth potential and develop their skilis
and capabilities in a congenial work and social environment through
opportunities for training, recognition, career advancement and other
incentives.
 To develop and nurture favourable attitudes among the employees and to

obtain their best contributions to the organization by providing stable
employment, safe working conditions, job satisfaction, quick redressal of
grievances and through good pay and welfare amenities commensurate with
the Company's capacity to spend and the Government's guidelines.
 To foster fellowship and sense of belongingness among all sections of

employees through closer association of employees with the management
and by encouraging healthy tråde union practices.
PERSONNEL POLICY OF NALCO:
Policy means “plan of action”. A policy is manmade rule of predetermined course

of action that is established to guide the performance of work towards org objectives.
HR SUBSYSTEMS:
TRAINING/DEVELOPMENT: NALCO believes that it is a contonious process

throughout the career of every employee with a view to develop his technical, human,
conceptual skills as required for his future career growth.
WAGE/SALARY ADMINISTRATION: The (HRD&A) department carries out it

as negotiated by the recognized trade union and manafement. In case of executives the
government guidelines and corporate office are the authorities for salary fixation. But in
case of non-executives, the wage is fixed by corporate office after negotiation with trade
unions. NALCO has adopted the IDA pattern pay scales both for executives and non-
executives.
HR Policies
Human Resource Policy provides a frame work within which decisions can be
taken without further reference to higher authorities.
Policies are broad guidelines as to how the objectives of a business are to be

achieved. While objective provide the vends which a manager should try to
achieve, policies provide the guidelines which he should keep in view while achieving
the ends.
A policy is designed to guide the organisational members to deal with a

particular situation in a particular manner. A policy is a predetermined and accepted
course of thought and action to serve as a guide towards certain accepted objectives,
Policies lay down the decision making criteria in line with the overall purpose of the
organisation in the area of Human Resources Management.
These policies are developed by Top management to assist the managers at

various levels to deal with the people at work. Thus, policies can be interpreted as the
recognised intentions of top management with respect to efficient management of work
force. A pclicy is a guide fer repetitive action in major areas of business. It is a
statement of commonly accepted understanding of decision-making criteria.
Benefits of Policies.
 By making policy decisions on frequently recurring problems, the top

management provides guidelines to the lower level managers.
 Policies help managers at various levels to act with confidence without the need
for consulting the superiors every time.
 Policies facilitate better administrative control as they provide the rational basis
for evaluating the results.
 By setting up policies, the management ensures that decisions made will be

consistent and in tune with the objectives and interests of the enterprise.
 Policies secure coordination and integration of efforts in accomplishing the

organisational objectives.
H.R.Policies in brief
 Environmemai Policy
 TQM
 Occupational, Health & Safety Policy
 TPM
 Quality Policy
 New Projects
 Technology
Quality Policy
Quality forms the core of Nalco's business philosophy. Meeting the needs
and expectations of the customer and consistently improving systems and work
ethos is the chosen path in achieving excellence in business and in fulfilling social
obligations
To ensure a healthy return on investment by maximizing operational
effiency, capacity utilization and productivity.
 To continually improve and redesign systems, processes and practices in

order to ensure error prevention and improve response time.
 To adopt internal customer focus as a means to external customer

satistaction.
 To treat human resource as the key to Quality Excellence and ensure

development, involvement and satisfaction of employees.
 To ensure high quality of inputs through proactive interaction with suppliers.
 To meet obligations towards the society as a responsible corporate citizen.
 To provide value for money to all stake holders
 To follow ethical business philosophy at all times.

Environment Policy
In recognition of the interest of the society in securing sustainable industrial

growth compatible with a wholesome environment, Nalco assigns high importance to
promotion and maintenance of a pollution free environment in all its activities.
Keeping the above in view, Nalco has set the following objectives.
 To use non-polluting and environment-friently technology in all industrial

activities.
 To monitor regularly air, water, land, noise and other environment

conditions and pollutant follouts.
 To constantly improve upon the standards of pollution control and provide a

leadership in environment management.
 To develop among the employees an awareness of environmental

responsibilities and their adherence to sound environmental practices.
To work closely with Govt. and local authorities to help prevent and
minimize adverse consequences of the industrial activities on the
environment.
 To comply with all applicable laws governing environmental protection

theough appropriate mechanisms
EMERGENCE OF A NEW ERA:
Towards the end of 1994, the HRD strategy of NALCO underwent a sea change. The
revolutionizing concepts of open forum, “SAHITYA”, data based appraisal methods ,
reward schemes for house keeping , “SARJANA” for creativity, best attendence, safety
awards etc.brought in a new cleansing wave, which changed the perception of the
employees about the functioning of the HRD group. The name of the personnel
department was changed to human resource development department.
The new HRD STRATEGIES were:

 New data based performance appraisal system.
 Career planning and succession planning through
Training
Job rotations
 Man power evaluation &re-allocations
 Decentralization of skill development trining and monitoring for the newcomers.
 Multi-skilling of the employees.
 Emphasis on communication.
 Structured departmental & inter-departmental meetings.
 Informal grievance handling
 Improved production incentive scheme.
 Group & individual reward schemes.
TRAINING AND DEVELOPMENT:
The training & development functions in NALCO are carried out in a structured
manner. The various components of the function are:
• Training need identification
• Preparation of annual training plan
• Training execution
• Training evaluation
The training programs are categorized as:
• Pre-employment training:
 Graduate engineer trainees
 Management trainees
 Senior operative trainees
 Junior operative trainees
 Trainee assistants
 Trainee workers
 Both academic as well as on-the-job training is imparted
 Selection through formal recruitment procedure as per the recruitment
policy of the company.
• Post-employment training:
 Induction training
 Executive/supervisory development training
 Refresher courses
 Specific technical skill training
 Statutory training
 Quality training
 Safety training
 Behavioural training
 Computer training
 Shop floor training
 Apprenticeship programmes conducted under statutory obligations of
apprenticeship act
 Vacation training programme for students
JOB ROTATION & MULTI-SKILLING:

Multi-skilling of the employees has been emphasized in NALCO since the
beginning as an important HR STRATEGY. In the panchpatmali bauxite mines at
Damanjodi , the ITI trained personnel have been recruited as junior maintenance-cum-
operative trainees, trained and employed on both maintenance and operation of mining
machinery. inter- disciplinary transfers have been practiced from time to time among
middle/senior level executives in order to prepare them for taking up higher managerial
responsibilities.
HR OBJECTIVES:
1. To capabilities in a congenial work and social environment through opportunities

for training, recognition and career advancement.
2. To develop and nurture favourable attitudes among employees to obtain their best
contributions to the org by providing stable employement, safe working conditions,
job satisfaction, quick redressal of grievances and through good pay.
3. to foster fellowship and sense of belongingness among all sections of employees

through closer association of employees with the management and by encouraging
healthy trade union practices.
WELFARE- INTRAMURAL,EXTRAMURAL FACILITIES:
INTRAMURAL FACILITIES:
• Drinking water
• Washing facilities
• Latrine and urinal
• Rest shelter
• Safety and occupational hazards
• Uniform and protective clothing
• Shift allowances
• Canteen
• Occupational health center
• Sanitation and cleanliness
• Better condition of employment
EXTRAMURAL FACILITIES:
• Maternity benefit
• Medical facilities
• Educational facilities
• Housing facilities
• Recreation facilities
• Holidays and leave travel facilities
• Workers co-operatives including consumers co-operative stores, fair price shop,
and co-operative credits.
• Vocational training for department of workers
• Other programme for the welfare of women and children growth
• Transport to and from the place of work.
EDUCATIONAL / PERIPHERAL DEVELOPMENT:
NALCO is committed to community development activities .
1. Education: A great deal of work is done to renivate local schools and colleges.
Extensive support are been provided for adult education programmes. The
company schools are providing quality education to hundreds of local students
over the year.
2. Drinking water: It is priorty area of Nalco’s periphery development plans. More

than 12.80 crores provided for digging of tubewells and piped water supply
schemes in rural areas of Angul , Dhenkanal and koraput districts.
3. Agriculture & social forestry: Apart from demonstration farming with use of fly
ash. Community participation in plantation, distribution of seeds, sapling &
agriculture implements are done.
4. Income and employment generation: Company’s manpower is mostly sourced

from local areas. The construction activities have created millions of mandays of
work. Quantum leaps in trade and commerce have created gainful employement
for many. About 14000 truck loads of finished goods moved out of Nalco plant
every year have caused a boom to transport business in angul sector.
5. Infrastructure development: Apart from funding many rural roads projects(rs 3.36
crore so far) major expansion of roads, rails, telecom networks in angul and
koraput sectors have been made possible on account of Nalco’s operations.
CHAPTER-5
CHAPTER-5
PERFORMANCE APPRAISAL AT NALCO:
There are two different types of appraisal system existing in NALCO for the
executives and non-executives. The OBJECTIVES of the target based performance
appraisal system for executives are:
• To evaluate the extent of achievement vs target by the individual executive during
the year.
• To plan for better performance.
• To understand the gaps in knowledge and skill with a view to providing guidance
and training.
• To identify the potential of the individual so that a dependable management
succession plan can be built up.
MAIN FEATURES:
 Joint identification of key performance areas and key tasks by the appraiser
and the appraisee.
 Joint setting of annual targets / dates in the key tasks.
 Specification of job requirements / helps needed.
 Quarterly joint review of targets / performance
 Joint annual review of performance / scoring.
 Indexed method of attributes/skills/abilities testing
 Joint training need assessment
 Moderation of extra ordinary scores by high level moderation committee.
 Training /workshops on the system.

The scheme of appraisal for non-executives consists of a five point scale with
reference to factors such as job knowledge, dependability, amenability to discipline,
initiative, safety consciousness, attendence, and punctuality, quality of work, concern for
companies property etc. in addition the supervisory personnel are assessed with respect to
their knowledge of rules, regulations, ability to communicate, record management, and
quality of supervision. Comments on intregity, suitability for promotion and
recommendations for training and development are also integral part of the system.
The main drawback of the system is its implementation. The appraisers mainly
production/maintainence engineers normally do not give enough time to the process of the
appraisal. The forms are generally filled in lots at the end of the year. The psychology of
gaining popularity with the sub-ordinates, the fear of being brushed up in the case of poor
ratings, intrdpartmental examples etc., are important factors for an unrepresentative rating
system inspite of very scientific and error proof provisions. whatever may be the system it
is always dependent upon the wisdom and sincerity of the individuals who are behind it.
GROWTH OF PERFORMANCE APPRAISAL AT NALCO:–
Performance Appraisai. is improving performance planning by setting mutually agreed

specific targets by the appraiser ( superior officer ) the appraise ( concerned
executives ). To provide ojbective assessment of executive through an evaluation
against target objectives. The policj- emu pnjt-cumca wli.li icfticiice to various forms area
performance target setting exercise. The reporting officer informs to the appraise about
the department the section objective target with reference to internal action plan of the
office. The appraised will identify the Key Persormance Area (K.P.A).
Key Task and additional task if any resume the appraise may reter to respective job
profile that have been details for each position or senior to his/her level to concern HOD.
The annual Performance Appraisai of the non-executives of NALCO is based on

following criteria :-
 It has been decided by the firm that to reconsider the annual assessment
report of r.on executives employees with a view to obtain an actual faet on
assessment of the competence and ability of an employee from his superior officers
who have an opportunity to supervise and observe his subordinate's work closely.
This will enable to built up a stock of human assets and to know weak and strong
links in deciding whether further training and career developments åre necessary.
 The annual appraisal of the non executives under the new system will relate to
one financial year. However, the first appraisal period will relate to 15 months from
01.01.2006 - 31.03.2007, in order to maintain continuity.
 The employees evaluated on the basis of services of 3 months or more in an

assessment year.
 The front page of the annual appraisal form will be filled up by the
concerned HRD Department. Thereafter the blank appraisal forms will be sent to
the respected Departmental Heads for appraisal of employees by the Reporting
Officer.
 Great care is taken in writing the Appraisal Reports as it is linked up with the
Career growth of the employees. The Reporting Officer should avoid hopinions a
nd conclusions based on insufficient data or hearsay.
 Appraisal against any item of the report should be made very clear and utmost
care should be taken to avoid all the vague and incomplete remarks.
 While recording the adverse remarks in the annual appraisal report, it should be
ensured that the individual has already been warned / punishment is imposed /
reprimanded and that the appraise has not shovvn any improvement.
 The assessment made by the reporting officer is again reviewed by his

superior officer. This review is necessary to minimize operation of subjective
human elements and conscious or unconscious bias on the part of the Reporting
Officer. To achieve this, the Reviewing Officer should have ample or sufficient
knowledge of the particular work and qualities of the per««™ rfpnrtfH nnon QO a«;
to enable him to judge whether Reporting Officer's report is correct and fair.
 The report where an employee has been rated as outstanding or poor will
invariably be submitted to the concerned unit Head/GM for per usual. The intention
is that extreme rating åre carefully viewed.
 It will be the duty of the Departmental heads to decide whether any remarks made
by the Reporting officer or Reviewing Officer åre to be communicated to the
employee concerned. In such cases, he should record his opinion is definite terms
stating the reasons therefore. All representations against adverse remarks should
be examined by the respective Head of the Department in consultation with the
Reporting and Reviewing Officer, i F found necessary.
 The appraisal dossier of the employees will be maintained by the concerned HRD
department. The HRD department should take timely action so as to ensure that blank
appraisal form shall reach the HODs by Ist of April e very year. The HODs will then
pass on the form to the Reporting officer for appraisal of the non-executives
employees working under them latest 3rd April.The Reporting Officer will appraise
the performance of the employee at the earliest convenience but before 13th April.
The Reporting Officer's immediate superior will compolete the review exercise by
23rd April and submit the report to the HOD for countersign where Reviewing
Officer is other than HOD. The HOD will countersign the report and record his
observations if any, and pass on the same toa the HRD department by 30th April.
 All concerned åre requested to strictly abide and adhere to the schedule for
proper and timely appraisal of the employees.
GUIDE LINES FOR PERFQRMANCE APPRAISAL QF NON-

EXECUTIVES IN NALCO :
1. Assesment should be based on the entire period covered and not on isolated
incidents.
2. Assesment of employee is to be done in relation to his/her presnent position

only.
3. Tendency to over-rate should be avoided.
4. While assessing the performance of employees at the end of the appraisal

period, it is excpected that shortfalls, if any in the persorance of an employee
shoudl be bought to the notice of the appraise from time to time during the
period. This gives an opportunity to employee to overcome their
deficiencies. If in spite of the efforts of the superiors, adverse entries åre
warranted, then it will be proper and helpful for such entries to be supported
by some documents / records, since such entries åre generally questiond.
5. As employees in grades of S l to S 4 constitute the top rank in the

non-executive category, it would be worthwhile to have a descussion on
their performance in the middle as well as at the end of the appraisal period.
i.e. from October and April.
These discussion between the appraiser and appraise would create a sense of
involvement in the job. Besides, these descussions, preferably recorded would
immensely help in a more objective performance appraisal.
6. The appraisal must review the past performance as well but it is important to
concentrate on the forthcoming, agreeing and challenging objectives on
developing our appraise.
7. The time tabie indicating dates on which various appraisal activities åre to be
initiated and completed should be strictly adhered to.
ANNUAL PERFORMANCE APPRAISAL OF EXECUTIVES IN NALCO :
It has been decided to modify the system of Annual Appraisals in respect of Executives
Employees w.e.f. Ist April' 1995 in order to achieve the following objectives :-
1. To integrated individual and organizational goals through a system o f

performance assessment which is linked to the achievements of organization.
2. To ensure on objective assessment of executive performance against

mutually agreed targets will in advance.
3. To provide individual executives with continuous and periodic feedback on

their performance and identify their development needs.
4. To identify and develop the potential of executive for enhanced

performance.
5. To build a data base and to enable quick and effective administrative

decision in respect of carrer planning, promotion, job rotation and job
enrichment.
Appraisal is not a fault finding process. It is developmental in essence. NALCO
practiced the following performance appraisal for executives :-
01. Pre-Appraisal target setting :
The reporting officer is required to set targets and tasks against a time
Schedule and as far as possible in quantitative terms in consultation with the
executives whose performance he is required to evaluate. This exercise is
undertaken at the beginning of the year.
02. Self-Appraisal :
Where you åre to furnish data on your achievement of targets / objectives,
percived shortfalls with reasons and your own training and development needs.
03. Review Discussion :
Renortina Officer holds a session of discussion every quarter with.the appraise

to discuss the performance against targets, shortfalls, shortcomings.
04. Weightage Factors :
In evaluating technical, conceptual and human relation skiils of an executive,

different weight age factors åre assigned depending on the level of the executive.
05. Time-Bound :
The period of appraisal or the appraisal year coincides with the financial year. The
Reporting Officer must complete appraisal writing by 20th April every year then through
time bound stages the completed report must reach corporate HRD Department on or
before 15th May.
06. Wider Participation in Appraisal Exercise :
Apart from Report and Reviewing Officer each executive appraisal report is seen,
commented upon and countersigned by principle HOD and Heads of the units.
07. Training / Development:
The last page of the report containing recommendations on functional and

developmental training is detached from the report and sent to HRD Department for
suitable action.
The Executive Performance Appraisal System under the revised system will relate to a
financial year.
THE APPRAISAL FORM CONSISTS OF FOLLOWING PARTS :
Form Descriptian tf Anpraisal Pracess

A Performance Target Setting Exercise
B Task and Target Assigned for the Year
C Quartcrly Performance Review
DI Annual Target Achievement Appraisal
D2 Managerial Skiils Appriasal
(Performance Factor)
D3 Managerial Skiils Appraisal
(Potential Factor)
E Training needs indentification
F Final Assessments.
DETAILS OF THE PROCESS :
1. FORM "A" :- (Performance Target Setting Exercise ) :- The Reporting

Officerf will inform the appraise about the Department / Section's objective
and targets with references to the internal MOU of the unit and hånds over
Form A. The appraise will identify a set of key task for the year and key
performance areas and fills up Form A which is only exercise sheet, to
furnish a set of key task with frame and relative weight age.
2. FORM "B" :- The Reporting Officer and Appraise will mutually agree to a
set of key task for the year, linik each key task with suitable timeframe and
assign relative weight ages and finally filling up Form B and sign it. This
form is also countersigned by the Reviewing Officer for his acceptance.
3. FORM "C" :- The new EPA's envisages four quarterly performance

reviews wherein Reporting Officer and Appraise review performance, record
level of achievement, reason for variation and details of special task of
assigned.
04. FORM "Di":- Annual Target Achievement Appraisal is done by

Reporting Officer and Reviewing Officer in Form DI at the end of the year (
during April) after four quarterly reviews ( done in Form-C).
Here the Annual Target is compared against achievements ( in terms of quality,

quantity and timeframe / date as the case may be ) and percentage achievement is
recorded independently by Reporting Officer and Reviewing Officer.
Wieghted score of particular key task / special task is calculated by Appraisal cell,
giving 70% weight age to Reporting Officer, 30% weight age to Reviewing
Officer. The Reporting Officer. The Reporting Officer also gives his
observation about the Appraise which is shown to the appraise and his signature is
taken. Subsequently the Reviewing Officer makes his observation at the space
provided for in Form Di.
05. FORM D2 & FORM D3 :- [Managerial Skill Appraisal, Performance and

Potential Factor] :- Each Appraise will be appraised on Managerial
Characteristicsw (traits) i.e. six performance factors and nine potential
factors at the end of the year. It is suggested that a record of specific
incident be kept separately by the Reporting Officer ( both positive and
negative incidents) to the extent possible for removing subjectivity.
Performance Factors (Skills required for performance) will be rated in Form D2

and potential Factors (Skill required for growth will be rated in Form D3 by
Reporting Officer, Reporting Officer (Functional), Reviewing Officer, each of
them will have 50%, 25%, 25% weight age respectively ; In absence of Reporting
Officer (Functional) the weight age will be assigned at 50% each.
06. FORM "E" :- In this form, the appraisal identifies his training needs and
records the details of programme with justification. The Reporting Officer holds
descussion with appraise and records his recommendation on training needs
giving the respective code available from the training hånd book circulated by
HRD Department.
Finally the Reviewing Officer gives his final observation in Form "E" regarding
training needs of the appraise which is taken into consideration by the HRD
department for implementation subsequentlyl.
6. FORM "F" :- The appraisal cell at the corporate office is to calculate the rating
given by the Reporting Officer. Reporting Officer (Functional) and Reviewing Officer
and fills up final score and final overall grade of the appraise in Form "F".
LEVEL OF REPORTING OFFICER. REVIEWING OFFICER. HIGHER

AUTHORITY
1. Reporting Officer : The executive next higher in rank and grade not below
the level of E4 officer to whom the appraise reports. In case the executive at
E3 level is the sectional head the concerned executive will be the Reporting
Officer of EO, E i and E2 executive.
2. Reviewing Officer : The executive next higher in rank and grade to the
Reporting Officer and to whom the Reporting Officer reports. In case of
Officers reporting to the complex head at ED level, Reviewing Officer will
be the concerned functional Director.
3. Higher Authority : The executive next higher in rank and grade to the
Reviewing Officer and to whom the Reviewing Officer reports.
4. Personal Staff and Directly Reporting Staff: The respective Controlling

Officer will be the Reporting Officer of personal staff and directly reporting
staff. The Reviewing Officer and Higher Authority will be as per clause
above.
5. In case the specified level of Officers noted above is not position, the next
higher officer will evaluate in his place.
6. Accepting Authority : Appraisal report after being routed through Higher

Authority is to be placed before the Accepting Authority, as indicated below.
who in turn is required to pass on the Appraisal Form to the Appraisal cell at
corporate office.
SI No. LEVEL OF APPRAISE LEVEL OF PERUSING
AUTHORITY
1. E7 and above CMD
2. Es and E6 Director
3. E3 and E4 Executive Director
4. EO, E i and E2 General Manager
For executives reporting to CMD, ratings given by CMD will be final and carry 100%
weight age.
CALENDER OF APPRAISAL ACTIVITIES :
A calender of appraisal activities has been elaborated upon with scheduled a date
which has been indicated at Annexure-I of the executives' performance appraisal
system. These activities will be carried out and monitored as per scheduled by
appraisal cell and other responsible officers as depicted in Annexure-I. It is high
lighted that submission and receipt of reports in Appraisal Cell as per the calender
enclosed in Annexure-I is important. In order to prornpt all concerned to take action
within the time frame, it has been decided that in case the reports åre not received in time
by Appraisal cell, the next annual increment of the officer concerned with the defaulting
stage is liable to be take into account in considering promotion / training needs. Co-
operation of all concerned to stick to time limii it. uieicfuie kupuiUuii for ihe success of
the system.
Provision For Moderation Committee and Timely completion and Submission

of Appraisal Booklet:
For effective implementation of the revised executive Performance Appraisal

System and to ensure strict adherence and abidement to the Appraisal calender as well
as to balance in the soft and hard ratings within grades, disciplines, departments
and units, it has been decided to introduce the following provision in the Executive
Performance Appraisal System w.e.f. the Appraisal year 1998-99.
(A) Inclusion of common key task for all executives in Form "B" and
Form DI that reads thus :- "timely completion and submission of
Appraisal Booklet as per the appraisal calendar".
(B) Formation of the Moderation Committee.

COMMON KEY TASK IN FORM "B" AND FORM D, :
It has been observed that very few Appraisal Booklets åre being received as per the
schedeled detailed in the appraisal calendar in spite of the penal provision contained in
clause 5.2 dated 22.05.1995. Appraisal Booklets åre usually completed in haste and
åre being submitted very late, almost in the last moment, inspite of constant follow-up
with all concerned.
In order to further ensure the timely submission of Appraisal booklet and strict
adherence to Appraisal calendar, it has been decided to have one compulsory key task
timely completion and submission of Appraisal Booklet as per the Appraisal
calendar in Form "B" and Form DI of Appraisal Booklet for each Appraise with
weight age factor of 0.05 out of the wieght age of 1.0 for all executives.
It is the responsibility of the Appraise the Reporting Officer, the Reviewing

Officer and the Higher Authority to strictly adhere to the calendar of appraisal activities.
Accordingly, each executive is to be rated by as appraise, Reporting Officer, Reviewing
Officer ( as applicable) w;.r.t. the appraisal calendar against the above compulsory task in
Form DI.
FORMATION OF MODERATION COMMITTEE ;-
In order to take care of the variations in rating, a Moderation Committee hasw

been formed. The main objectives of the Moderation Committee åre as follows.
1. To balance the soft and hard ratings and to ensure an equitable assessinent
with in the grade, discipline, department and unit.
2. To correct over under ratings m departments, areas and sections which have
not achieved, exceeded the targets. Keeping in view the above objectives
two committees have been formed for moderation.
(a) Committee- I :-This will consists of 3 members having Executive Director,

concerned General Manager and another General Manager to deal with cases of
executives up E4 level.
(b) Committee - II:- This will consist of 3 Directors including concerned functional
Director to deal with cases of Executives of E5 level and above.
The above committes will look into cases of variations of the following nature.
1. In case of final overall performance of the appraisee being C (poor) i.e.

below 50% in form "F".
2. In case of appraisee securing below 50% is either Form DI, D2 or D3.
3. In case of variation, 40% and above between the ratings of the reporting
officer and the reviewing officer in either Form Di, D2 or D3.
4. All appraisals having A+ (outstanding) will be referred to the Moderation

Committee.
5. Incase of appraisals having speciflc remarks, observations of higher

authority regarding over or under ratings shouid be referred to Moderation
Committee.
6. Inc ase of executives for whom the Chief Managing Director is the reporting
or the reviewing officer, the concerned appraisals will not be sent to the
Moderation Committee.
APPRAISAL YEAR 2000-2001.
a. Appraisal atter being routed through higher authority is to be placed before

the accepting authority.
b. After being moderated the final moderated ratings åre to be placed before the
authority as given below.
Level of appraissee Leval of accepting authoritv.
E-O to E-4 Functional Director
E-5 and above. Chief Managing Director.
The appraisal cell after checking the appraisal rating in respect of executives
having the above variations will refer sucyh cases to committee l or committee 2 as
the case may be for moderation. The recommendations of the moderation
committee will be put up to the Chief Managing Director for approval and
acceptance of the final rating. The accepted final ratings will be entered in the
appraisal dossier of the concerned executives by the appraisal cell.
EVALUATION :
Systematic employee appraisal techniques came into promonence during the

Ist World War. At the time at the instance of Walter Dilly Scott. The U.S. Army
adopted the "man-to-man" rating system for evaluating military personnel. During
the 1920's and 1030's the industrial units adopted rational wage structures for their
hourly paid employees appraisal plans were called merit rating programs which was
the most wodely accepted designation up to the mid-fifties.
Most of the merit rating plans from the 1920 to the mind 1040's was of the rating
scale type with emphasis on factors, degree and points. In the early 1050's however great
interest developed towards the performance appraisal of technical, professional and
managerial personnel. It was recognized that appraisee on a systematic basis, was in
integral part of a well-designed devalopment programme. Later on the term merit rating
was replaced by new terms employee appraisal and performance appraisal.
THE EVALUATION PROCESS :-
Stolz observes that " the process of performance appraisaol follow a set pattern, Viz; a
man's performance is periodically appraised by his superior". Performance Appraisal
process consists of several steps.
The process of evaluation beigins with the establishments of "performance standards". At

the time of designing a job and description, standards åre usually developed for the
position. The next step is to communicate these standards to the employees, for the
employees left to themselves would find it difficult to guess what is expected of
them. to make communication effective "feedback" is necessary from the subordinate
to the Manager. The third step is the "Management of Performance" to determine what
actual performance is, it is necessary to acquire information about it. The forth step is the
comparison to actual performance with standards. The employees, where good points,
weak points and difficulties are indicated and discussed so that performance is improved
FLOW OF APPRAISAL SYSTEM:
At first the reporting officer will infirm to the appraise about the department/section &
objectives & targets. Then the appraise will identify the key performance areas (KPAs), key
tasks & addition tasks. Both reporting officer & appraise mutually agree to set of targets. The
reporting officer discussed wit the appraise before .Training needs, along with any needs, like
study tour, visit to other place like etc. As finally recommended by the reviewing officer, & it
will be intonated by the Training Dept. The mutually decided targets will be reviewed twice in a
financial year .The objectives of this reviews will be to focus on the extent of achievement of
mutually agreed targets & give an oral feedback. The review is done in 1 st week of July & 1st
week of January positively. Annual targets achievement appraisal is done by Reporting &
reviewing officials .Annual target is compared against achievement in terms of quality, quantity
& time frame as the case may above .The appraise will be appraised on managerial traits i.e. six
performance factor &9 potential factor at the end of year . Appraisal form is routed through
Higher Authority &Accepting Authority for their observation . Final over all score &is grade is
calculated by appraisal cell after modification.
PROCEDURE FOR ANNUAL PERFORMANCE APPRAISAL

(EXECUTIVES)
Steps Department Personnel Unit head Corporate

Office
Employees receives
Adverse comments
Comments adverse
To employee.
Analysis
Training needs
Implementation
Concurs/receives
HOD comments/
Concurs receives before 6th May
Reviewing Officer Assesses

In open consultation with the
Executives before 20th
April
Executives does self

Assessment before 6th
April.
HOD forward the form
Send form before due date.

PROCEDURE FOR ANNUAL ASSESMENT

(NON-EXECUTIVES)
Steps Department Personnel Training
Receives the
Adverse comments
Communicates the
Adverse comments to
Employee
Analysis
HOD comments &

Contours /militias(3 days)
Reviewing officer concurs/

Modifies (3 days)
Reporting officer assesses

(1 week)
HOD forward
Sends from before the

Last of December
( by 1st Jan).
TRAINING NEEDS
1. It has been decided to revise the annual assessment report of non-executive employees
.The revised annual assessment report from is at annexure .
2. The annual assessment report in the revised from shall be filled up from the assessment
year 1984 .It is clarified that an assessment year is the calendar year i.e. 1st January to
December
3. The revised annual assessment report shall apply to non-executive employees ,

earlier as assessment reports in respect of stenographic /supervisory staff
accordingly be discontinued effective from the assessment year 1984.
4. The assessment shall be done in respect of an employee who has put in service of 3
months or more in assessment year.
5. The report will be initiated by the immediate Reporting officer of the employee whom he
has worked for minimum period of 3 months . In case an employee has completed more
than 3 months under two more reporting officer separate reports will be prepared by each
one for the respective.
6. The reports will reviewed by an officer reports .In case of supervisory employees the
reports must necessarily by concerned HOD.
7. The reports where an employee has been rated as outstanding or poor will invariably be
submitted to the Concerned General Manager for perusal
.
8. Any adverse remarks including poor overall rating should be communicated by the
personal department within 30 days of receipt of the report to the employee concerned
clearly stipulating the areas where the performance conduct has been lack by so that the
employee may improve upon .The employee may appeal against the adverse report within
30 days of communication to the general manager whose decision on the matter be final &
pending .No further appeal will be entertained.
9. The reporting officers/reviewing officers specifically substantiate adverse ratings.
10. The assessment dossiers of the employees will be maintained by the unit personnel
department . The personnel department should take timely action so as to ensure that
assessment reports are made by 31st march every year.
11. All reporting /reviewing officers are request to co-operate with the personnel assessment
of the employee.
GUIDANCE FOR ASSESSORS:
1. Base your judgment on the entire review period & not on isolated incidence.
2. Consider only on one item at a time & rate only in relations to the requirements of the
present employees.
3. Please make sure that

a strong or weak quality under one attribute does not influences
your judgment of employee’s standing on the rest.
4.Base all your assessments on the direct knowledge of employees performance on the job.
5Use
“general remarks” column for any amplification ,addition or explanations of your
opinions on the employee.
Qualified value is indicated below:
Outstanding = 5,Good = 4,Average = 3,Below average = 2,Poor =1

CHAPTER-6
CHAPTER- 6
DATA ANALYSIS
Approved by
Effective Date
Replaces /modification clarification
It has been decided to revise he annual assessment report of Non _ Executive employee with a
view to obtain an objective assessment of the competence & ability of an employee from his
superior officers who have an opportunity to supervise & observe his work closely . This will
enable to build up an inventory of human assets & to know our links in decided whether further
training & career
Development are necessary . The revised annual assessment report form is at annexure .
The appraisal under the new system will relate to a financial year. However , the 1st appraisal
period will relate to 15 months from 01.01.95 to 31.03.96, in order to maintain continuity .
The appraisal shall be done in respect of an employee who has put in service of 3 months or
more in an assessment year.
The front page of the annual appraisal form will be by the concerned HRD Department.
Thereafter the blank appraisal forms will be sent to the Department heads for appraisal of the
employees by the Reporting / Reviewing officer.
Great care should be taken in writing a appraisal Report , since the same is linked up with the
career growth of the employees . The reporting officer should avoid hasty opinions &
conclusion based on insufficient data or hearsay . Assessment against each item of the report
should be made very clear & care should be taken to avoid vague & incomplete remarks . It is
essential to state in what extent the individuals has exhibited the various qualities during the
period under report .
While recording adverse remarks in the appraisal Report, it should be ensured that the individual
has already been warned / punishment imposed /reprimanded &that the individual has not
shown any improvement.
The assessment made by the reporting officer is to be reviewed by superior officer. The review is
necessary to minimize operation of subjective human elements and of conscious or unconscious
bias on the part of the reporting officer. To achieve this reporting officer should have sufficient
knowledge of the work and qualities of the person reported upon, so as to enable him to judge
whether his report is correct and fair.
The reports where an employee has been rated as outstanding or poor will invariably be
submitted to the concerned unit head . the intension is that extreme ratings are carefully viewed.
It will be the duty of the departmental heads to decide whether any remarks made by the
reporting officer / reviewing officer are to be communicated to the employee concerned. In such
cases he should record his opinion in definite terms stating the reasons therefore.
All representations against adverse remarks should be examined by the HOD in consultation
with the reporting officer / reviewing officer, if found necessary.
The appraisals of the employees will be maintained by the concerned HRD department. The
department should take timely action so as to ensure that blank appraisals forms shall reach the
HOD’ s by the 1st april every year. The reporting officer will appraise the performance of the
employee at the earliest convenience but before 13th april.
The HOD will countersign the report and record his observations and pass on the same to the
HRD department by 30th april. All concerned are requested to strictly adhere to the time
schedule for proper and timely appraisal of the employees.
The performance appraisal system serves as an important tool for the development of the
employees but its effectiveness depends on the importance placed on it.the system works when
appraisals are factual, honest, and they encourage employees to set and achieve both work and
personal objectives. It is therefore essential that the appraisal should be an honest reflection of
the employees attitude, abilities, output and discipline.
The following points may be born in mind while filling up the performance appraisal forms:
Assessment should be based on the entire period covered and not on isolated incidents.
Assessment should be done in relation to his present position only.
Tendency to over-rate or under-rate should be avoided. while assessing the performance of

the employees at the end of the appraisal period, it is expected that shortfalls, if any, in
performance would have been brought to the notice of the appraise from time to time during that
period. This gives an opportunity to the employees to overcome their deficiencies.
As employees in the grades of s1 to s4 constitute the top rank in the non-executive category it
would be worth while to have a discussion on their performance in the middle as well as the end
of the appraisal period.
These discussions would in still in theme a sense of involvement in the job. Besides , these
discussions, preferably recorded, would immensely help in a more objective performance
appraisal.
The appraisal must review past performance but it is important for us to concentrate on
agreeing challenging objectives on developing our appraisee.
The time table indicating dates on which various appraisal activities to be initiated and
completed is shown at the back page of the form. These deadlines should be strictly adhered to.
1. Assessment is required to be made on 5 point scale as given below:
Out standing 05
Very good 04
Good 03
Average 02
Poor 01
2. Assessment in respect of employees in the unskilled and semi-skilled category will be

made on 12 factors. Employees in skilled and highly skilled category will be assessed for
17 factors. While employees in supervisory category will be assessed for 08 additional
factors making a total of 25 factors.
(1) Reporting officer will be the executives under whom the appraisee works atleast
for a period of 03 months in the assessment year. Reviewing officer will be the
executive to whom the reporting officer reports. Wherever the appraisee reports to
more than one reporting officer .
1. what is performance appraisal from your point of view?
Options No: of respondents Percentage
An annual ritual 10 20%
A management gimmick 4 8%
An evaluation process 36 72%
annual ritual
management
gimmick
evaluation
process
Slice 4
From the table / diagram it reveals that in NALCO, 20% of the employees feel that the
performance appraisal is an annual ritual and only a minor percentage that is 8% feel that it is
a management gimmick and the maximum 72% feel that it is an evaluation process which
helps them in evaluating their performance and also in their career growth.
2. what should be the basic thrust in the current appraisal system?
Performance 9 18%
Experience & seniority 5 10%
Performance with 36 72%

personality traits &
managerial skills.
performance
seniority&exper
ience
performance
with personality
traits&manageri
al skills
4th Qtr
From the table / diagram it reveals that in NALCO, 18% of the employees feel that the basic
thrust in current appraisal system is performance, 10% feel that it is experience and seniority
and maximum 72% feel that it is performance with personality traits and managerial skills. so
it is a combination of all the potential and performance factors that plays a role in the
appraisal system.
3. who sets the goals and targets of the performance appraisal system in NALCO?
Reporting officer 05 10%
Reviewing officer 05 10%
Both 40 80%
reporting
officer
reviewing
officer
both
Slice 4
From the table / diagram it reveals that in NALCO, 10% of the employees feel that the goals
and targets of the performance appraisal are set by the reporting officer and 10% feel that it is
by reviewing officer but the maximum employees 80% say that it is set by both the reporting
officer and the reviewing officer. These people help the employees in the appraisal system by
explaining them the goals and targets set by them for conducting the performance appraisal
system in an efficient manner.
4.Has the performance appraisal in the organization leads to career growth ?
options No: of respondents Percentage
Yes 40 80%
No 05 10%
Can’t say 05 10%
yes
no
can't say
Slice 4
performance appraisal leads to career growth. Only 10% said no and 10% cannot say
anything. In the case of executives for promotion out of 100 marks performance appraisal
carries 80 marks, seniority carries 10 marks, and interview carries 10 marks. And in the case
of non- executives out of 100, appraisal carries 40, written carries 40 and interview carries 20
marks.
5.Are the performance targets that are set explicit in nature?
Yes 44 88%
No 06 12%
Can’t say 00 00
yes
no
cant say
Slice 4
From the table / diagram it reveals that in NALCO, 88% of the employees agree that the
performance targets that are set explicit in nature. And minor 12% of the employees say that
they are not explicit in nature due to dilatory tactis. So the maximum people feel that the
targets are explicit in nature .
6.At what time interval the performance appraisal will be carried on?
Every quarter 10 20%
Every 6 months 25 50%
At the end of the year 15 30%
every quarter
every 6 months
at the end of
the year
Slice 4
From the table / diagram it reveals that in NALCO, 20% 0f the employees feel that
performance appraisal will be carried for every quarter and 50% of the employees feel that it
is carried for every 6 months and 30% of the employees say that it is carried at the end of the
year. But if the performance appraisal is meant for mid year review then it is carried for
every six months.
7.Would you like to participate in the appraisal process to set targets, and discuss training
needs? (for non-executives)
Yes 22 44%
No 12 24%
Can’t say 16 32%
yes
no
cant say
Slice 4
From the table / diagram it reveals that in NALCO, 44% of the employees (non-executives)
are interested to participate in the appraisal process to set targets and goals for the system and
24% of the employees do not want to participate and 32% of the employees did not give their
opinion in this matter. But in NALCO, the reporting officer as an appraisee is involved in the
appraisal process for the executives but there is no provision for non-executives to participate
in the appraisal process to set up the goals and targets.
8.The purpose of performance appraisal in the organization is?
Determining salary 03 06%

increments
Deciding promotion 47 94%
Identifying candidates for 00 00

succession plan
determining
salary
deciding
promotion
identufy
candidates for
succession plan
Slice 4
purpose of the performance appraisal is to determine the salary increments and 94% of the
employees feel that it is for the purpose of their promotion. So the main purpose of the
performance appraisal in the NALCO is to decide the promotion of the employees
depending on their performance levels.
9.which of the following required conditions the organization has?
General climate of 05 10%

openness, mutual trust
Helpful & empathetic 05 10%

attitude of management
Sense of participation by 05 10%

subordinate
All of the above 35 70%
general climate for

openness and trust
helpful management
participation by
subordinate
all
From the table / diagram it reveals that in NALCO, 10%of the employees feel that there is
general climate for openness and mutual trust and 10% feel that helpful management is there
and 10% feel that participation of subordinate is there and maximum 70% feel that all of the
above conditions are existing in the organization.
10what sources of information used by appraisers to judge the performance of an appraise.?
Periodic reports in 11 22%

prescribed forms
The superior relies on his 02 04%
memory
Discussion with concerned 37 74%
subordinates & other
managers.
The subordinate is asked to 0 0%
make a self appraisal
periodic reports
superior's
memory
discussion with
subordinates&ot
her managers
self appraisal
sources of information used by appraisers to judge the performance is done through periodic
reports in prescribed forms and 04% think that the superior relies on his memory and
maximum 74% feel that it is gathered through discussion with concerned subordinate & other
managers. So the information is mainly collected by the appraisers through consulting the
subordinates.
11.guidelines that are provided to help while conducting performance appraisal are?.
Very specific and helpful 38 76%
Too general to be of any 12 24%

help
No guidelines are provided 00 00
specific &
helpful
too general
no guidelines
Slice 4
From the table / diagram it reveals that in NALCO, 76% of the employees agree that the
guidelines provided are very specific and helpful and 24% of the employees say that they are
too general to be of any help. So in the case of executive appraisal these guidelines are very
helpful but not in the case of non-executives. While doing performance appraisal system,
usually they have meeting or post performance counseling meeting.
12.what factors considered while approaching for the performance appraisal.?
Job factors 08 16%
Potential factors 07 14%
Performance factors 10 20%
All the factors 25 50%
job factors
potential factors
performance factors
all the factors
From the table / diagram it reveals that in NALCO, 16% of the employees feel that job
factors are considered while approaching for the performance appraisal, 14% feel that
potential factors are considered , and 20% feel that performance factors are considered. But
the maximum employees feel that all the factors are considered while performance appraisal
as these factors help them in getting promotions and further improvement in their career
growth.
13.Do they conduct performance appraisal review meeting scheduled intervals as stipulated
in the system.?
Yes 33 66%
No 17 34%
yes
no
Slice 3
Slice 4
performance appraisal meetings are conducted as per scheduled times but 34% of the did not
agree with this. According to them the management feels that it is a waste of time and
manpower, so they do not give any attitude and importance to it. So conducting performance
review meetings is very essential in the organization, to know the performance of the
employees.
14.At performance appraisal review meeting or during counseling the things discussed are?
Strengths / weaknesses 10 20%

Goals for the next appraisal 08 16%
Areas in which he / she 06 12%
needs to be improved
Training needs 05 10%
09 18%
/ her performance during
the previous year
All the above 12 24%
strengths /
weaknesses
goals for next
appraisal
areas to be
improved
training needs
performance in
previous year
all
From the table / diagram it reveals that in NALCO, 20% of the employees say that strengths
and weaknesses are discussed during the review meeting, 16% say that goals for next
appraisal are discussed, 12% say that areas in which the employees lack are discussed, 10%
say that training needs are discussed and 18% say that performance during previous year is
discussed and 24% say that all the above things are considered in the review meeting. So all
the factors are considered to come into a conclusion regarding the performance of the
employees and rate them according to that for further actions.
15.You feel the performance appraisal review meeting with the appraiser?
Very useful 25 50%
Are done only as a 10 20%

formality
Moderately useful 15 30%
very useful
done as a formality
moderately useful
Slice 4
performance appraisal review meeting is very useful, 20% of the employees feel that it is
done only as a formality because they did not find any results with this and 30% of the
employees feel that it is moderately useful. So the meeting should be made very useful to all
the employees by explaining them the problems and consequences of it. They should also be
allowed to know their ratings so that they can bring improvements in their performance.
16.Should appraisal be done more frequently?
Yes 10 20%
No 40 80%
yes
no
Slice 3
Slice 4
appraisal process should be done more frequently and 80% of the employees feel that there is
no necessary to do the appraisal more frequently as they are satisfied with the present system.
It is done for every six months.
17.Any specific suggestions to offer to make the existing appraisal more

objective & scientific?
Yes 20 40%
No 30 60%
yes
no
Slice 3
Slice 4
From the table / diagram it reveals that in NALCO, 60% of the employees do not want to
offer any specific suggestions to make the appraisal system more objective & scientific but
40% of the employees are interested to offer suggestions like a chapter should to be included
to measure the attitude status of the appraise by using available psychological tools and also
more information that would help the employee in giving a clear cut idea about appraisal.
18.Sometimes it is said that the appraisal system in an organization is good, but the
implementation is poor. Does this happen in the organization ?
Yes 21 42%
No 29 58%
yes
no
Slice 3
Slice 4
From the table / diagram it is said that in NALCO, 42% of the employees said that the
implementation of appraisal system is poor in their organization .this is due to lack of time &
interest on the part pf the appraisal, all levels do not feel it as important and due to faults in
the appraisal system. But 58% of the employees agree that the performance appraisal system
is good in its implementation also.
19.Are appraisals in the organization done in hurry & least effort?
Yes 24 48%
No 26 52%
yes
no
Slice 3
Slice 4
appraisals are done in hurry and least effort due to lack of interest or for some other reasons.
And 52% of the employees feel that they are not done in hurry and least effort. But to satisfy
all the employees there should be good coordination among the employees and mutual
understanding between the appraise and appraiser.
20.Would you like to see the following changes in your performance appraisal process?
Provision for pre & post 10 20%

appraisal interviews
Introduction of evaluation 05 10%
by a committee
Change in appraisal format 15 30%
Training on performance 20 40%
appraisal skills
provision for pre&post

appraisal interview
evaluation by
committee
change in appraisal
format
training on appraisal
skills
From the table / diagram it reveals that in NALCO, 20% of the employees want provision for
pre & post appraisal interview, 10% of the employees require an evaluation committee, 30%
of the employees wanted a change in the appraisal format and 40% of the employees require
training on performance appraisal skills.
FINDINGS:
1. The performance appraisal in NALCO is in a systematic manner providing opportunities

to its employees.
2. The data that is for executives Management By Objectives is more efficient method
3. Majority of the respondents felt that there is proper recognition for the employee for their
efforts and their achievements towards their work.
4. For non-executives the ratings are done through Paired Comparison method as well as
Group Application method.
5. NALCO provides training needs to its employees by evaluating their all round
performance .
6. In NALCO the relation between appraise and appraiser is very mutual and cordial.
7. In NALCO, once in a month seminars are conducted which helps employees to increase
and gain more knowledge.
7. The superiors in NALCO follow open door policy which helps subordinates to share and
maintain a healthy environment.
RECOMMENDATIONS:
1. An atmosphere of mutual trust and confidence should be created. Such atmosphere is

necessary for frank discussion of appraisal. It also helps to obtain the faith of employees
in the appraisal system.
2. well-defined performance factors and criteria should be developed and standardised. It

will help to ensure uniformity and comparisons of ratings.
3. The raters should be required to justify their ratings. Documentation will encourage
evaluators to make conscious efforts to minimize personal bias.
4. While designing the appraisal system individual differences in organization should be

recognized as organizers differs in size, nature, and environment, therefore the appraisal
system should be adaptable.
5. After appraisal an interview with the employees should be arranged. It is necessary to

know the difficulties under which the employees work and to identify their training
needs.
6. A mechanism for review of ratings should be provided. The review may be a committee
consisting of line executives and personnel experts. The committee will see whether the
raters are unusually lenient or strict.
.
CONCLUSION
To describe the term impact of performance appraisal on work culture is very much large. proper
training and well development of each and every employee is needed for overall customer
orientation and customer satisfaction.
Performance appraisal is the blood and bone of an organization, without which the entire
organization collapses and is ruined, and it is very vital to maintain it in this present scenario. To
bridge up the gap between present and future, performance appraisal is a systematic tool, but
very often we find that sometimes people in the organization are hesitate to involve themselves
in the process of change or we can say that they are not interested to change the work culture and
organization environment at large due to various organization politics and fear i.e., loss of job,
fear of replacement etc. In this situation proper moralization is essential to make the total system
a success.
A proper performance appraisal system not helps the organization to make in a right path but
also prepare the organization to face the future changes. So to adopt the process of change the
proper training and development is very much needed.
Therefore, here we conclude that performance appraisal is an important weapon to modify the
work culture and has great impact to develop the society. Thus, performance appraisal is the
most significant element of the information and control system in any firm. It can be put to
several uses concerning the entire spectrum of Human Resource Management Functions.
CHAPTER-7
CHAPTER - 7
ANNEXURE
FORMS OF THE ORGANISATION

PERFORMANCE TARGET SETTING EXERCISE SHEET
This form is only an exercise to help appraise to set the targets with reporting officer in line with
the internal MOU / action plan of the department / shop unit.
KEY PERFORMANCE AREAS

1.
2.
3.
SL NO KEY TASKS WEIGHTAGE TARGET REMARKS

1. Timely completion& 0.05 As detailed in
submission of appraisal appraisal
booklet as per appraisal calendar.
calendar.
TASKS & TARGETS FOR THE PERIOD _______________ - _____________
This is to confirm that all the key tasks agreed to and represent the major yearly workload of the
appraise and are in line with the internal MOU/ action plan of the department/shop/unit.
Name : Design : personal number:

Key performance areas
1.
2.
3.
SL NO KEY TASKS WEIGHTA TARGET REMARKS

GE
1. Timely completion 0.05 As detailed in
&submission of appraisal
2. appraisal calendar. calendar.
3.
4.
5.
6.
7.
8.
9.
10.
Weightage of all key tasks including additional tasks if any, should be 1.0
Signature of appraisee: signature of reporting officer: signature of reviewoficer

Name: name: name:
Designation: designation: designation:
Date: date: date:
PERFORMANCE REVIEW
(During 1st week of july)
A. comments on achievement with respect to tasks agreed in form.
B. Reasons for variance. If any.
C. Suggestions for improvement.
D. Special tasks, if any (indicate allocation of weightage & adjustment against

original KPAs)
Signature of appraisee: date of review meeting: signature of repo officer

ANNUAL TARGET ACHIEVEMENT APPRAISAL FOR THE PERIOD
____________ TO_______________
The reporting officer and the reviewing officer will separately rate the appraisee’s target
achievement in terms of percentage with reference to annual target in terms of quantity/ time
frame/ date in column b&c respectively.
SL KEY WEIGHTAGE(A) TARGET ACHIEVEMENT REPORTING REVIEW

NO TASKS IN QTY/ DATE OFFICER(B)% OFFICER
(C)%
Timely 0.05 As
completion detailed in
&submit calendar
of appraisal
booklet as
per
calendar
Additional
B. tasks
1.
2.
C. Special
tasks, if any
1. assigned
during the
2. year.
Total of weighted average (to be done by appraisal cell only)

Total weightage points for all key tasks , special tasks should add to 1.0 only
Weighted average = [A * (0.7B + 0.3C]

OBSERVATION OF REPORTING OFFICEER
Signature of appraisee: signature of reporting officer:

Date: Name:
Designation:
Date:
OBSERVATION OF REVIEWING OFFICER

Signature of reviewing officer:

Name:
Designation: date:
MANAGERIAL SKILLS APPRAISAL (PERFORMANCE FACTORS)

FOR PERIOD _____________ TO _______________
The reporting officer and reviewing officer will assess the concerned executive on his / her
managerial traits on the following scale:
SCALE:
0.0 1.0 2.0 3.0 4.0 5.0

Well below below as better than well above
Expected expected expected expected expected.

Basing on these performance factors the reporting officer and the reviewing officer rates the
employee as well below expected, below expected, as expected, better than expected, and well
above expected. Depending on these performance traits the reporting officer and the reviewing
officer rates the employee for their career growth and for poor performance they will have an
opportunity to upgrade themselves regarding job knowledge, managerial effectiveness,
communication skill, planning and organizing, problem solving, analysis and decision making
and also in human resource utilization and development.
SL NO: ATTRIBUTES RATINGS
REPORTING & REVIEWING OFFICER

1 2 3 4
1. supervision
2. control
3. planning
4. coordination
5. organizing ability
6. response under pressure
7. record keeping
8. ability to communicate
Wt Rep. Rep.Off Rev

(A) Off(B) F (C) Off (D
Managerial skill (performance factors)
0.25
1. JOB KNOWLEDGE
• Exhibits managerial/technical skills
commensurate with his / her levels of
assignment in the job.
• Constantly applies his / her knowledge
and skills to improve results in the
work area.
• Exhibits sincerity to keep on learning.
2. MANAGERIAL EFFECTIVENESS
• Co-ordinates with other departments 0.15
and develops relationship with
colleagues to achieve desired levels of
performance.
• Seeks timely intervention of superiors
to solve problems & usually gets
support of superiors
• Possesses the ability to appreciate /
analyze the concepts/objectives of
supervisors and adjusts him/ her to the
work style of their superiors.
3. COMMUNICATION SKILL
• Possess clarity and precision in both
oral and written communication &
presentation.
• Listens actively and displays concern
to grasp ideas & instructions.
• Gives timely feedback & makes
planned efforts for free flow of
information between all concerned.
• Ensures that his / her subordinates
know company / departmental plans
& policies.
MANAGERIAL SKILL WT(a) REP REP.OFF REV.OFF

(Performance factors) off(b) (F) (C) (D)
1. PLANNING&ORGANISING
• Anticipates problems, develops
Alternative strategies to prevent frequent
Failures/crises.
• Priorities activities &mobilizes /allocates
Resources accordingly.
• Coordinates at parallel levels for
Resources.
• Monitors/reviews and improves
Planning &coordination.
2. PROBLEM ANALYSIS & DECISION MAKING

• has the ability to assess a situation and
break it into its logical components.
• Seeks information and evolves alternative
Solutions.
• Shows promptness & confidence in decision making
3. HUMAN RESOURCE UTILISATION AND

DEVELOPMENT
• Possess the ability to obtain the desired
Levels of performance from employees
Working under him / her.
• Possess control over people and ensures
Good discipline, high level of motivation and
Teamwork.
• Has the ability to build and improve competence
Of subordinates.
• Provides timely guidance to people working.
TOTAL WEIGHTAGE
Weighted average to be calculated by appraisal cell only
Total of weighted average =

Weighted average = [A*(0.5B+0.25C+0.25D)] / 5 where b, c, d, will be the score of respective
factors. In the absence of reporting officers (f), the weighted average score will be computed as
[A*(0.5B+0.5D)] / 5 where b, d, will be the score of respective factors.
MANAGERIAL SKILLS APPRAISAL (POTENTIAL FACTORS)

FOR PERIOD____________- TO _______________
The reporting officer, reporting officer (F) and reviewing officer will assess the concerned
executive on his / her managerial traits by rating on the following scale:
SCALE:
0.0
1.0 2.0 3.0 4.0 5.0
well below below as better than well above
expected expected expected expected expected
MANAGERIAL SKILL WT REP REP.OFF REV.OFF

(potential factors) (A) OFF(B) (F) (C) (D)
1. ABILITY TO RESOLVE CONFLICT

•Able to identify potential sources of
Conflict affecting a work situation.
•Makes efforts to resolve such situations
By careful planning and appropriate
Strategy.
2. ABILITY TO DELEGATE
•Delegates and involves his / her
Subordinates so that he / she is not
Found to be over burdened with
Work.
•Develops and encourages his / her
Subordinates to better their performance
3. COST AND TIME CONSCIOUSNESS

•Displays conscious concern for control,
Benefits and profits for the company.
•Makes optimum utilization of resources
And supports cost reduction drives.
•Displays conscious concern for time
Schedule affecting both external and
Internal customers.

4. AWARENESS ABOUT WORK

BUSINESS ENVIRONMENT
•Keeps abreast of the latest

Developments, technological
Changes taking place in the
Environment.
•Contributes to professional
Journals & associates with
Professional bodies.
5. C0MMITMENT & SENSE OF

RESPONSIBILITY
•Exhibits dedication to work &

Company objectives
•Exhibits reliability & perseverance
To complete assigned tasks.
6. INTERPERSONAL SKILLS
•Possess ability to get along

With superiors, peers, subordinates
And clients / customers.
•Exhibits loyalty and tact
Weighted average to be calculated by appraisal cell only.
Total of weighted average =
Weighted average = [A*(0.5B+0.25C+0.25D)] / 5 where b, c, d will be the score of respective

factors.

7. CREATIVITY & INITIATIVE
•Is a self starter & possesses

Ability to generate new ideas.
•Is able to approach and analyze
Problems from various angles and
Come out with workable solutions.
•Makes continues efforts to innovate
And improve systems and procedures
In his / her own area of work.
•Takes initiative in work and till the
End of the task.
8. POSITIVE MENTAL ATTITUDE

& LEADERSHIP QUALITIES
•Is flexible and open to change

•Has the drive and enthusiasm
Of an entrepreneur.
• Leads subordinates by assigning
Appropriate tasks for motivating
Them.
• Continuously endeavors to
Train and develop them.
9. SELF DISCIPLINE AND SENSITIVITY

TOWARDS ORGANISATIONAL NEEDS
• Shows extremely good behavior and

Conduct.
• Fully participates in the implementation
Of company rules and policies.
• Is sensitive towards the needs of the
Organization, especially those of the line
/ staff functions.
TOTAL WEIGHTAGE
A. OBSERVATION ON JOB ROTATION:

1.RECOMMENDATIONS OF REPORTING OFFICER ON JOB ROTATION, IF ANY:
2. RECOMMENDATIONS OF REVIEWING OFFICER ON JOB ROTATION

IF ANY:
B. IDENTIFICATION OF MAJOR STRENGTHS AND

WEAKNESSES OF APPRAISE.
(ref. Clause 6.5 of guidelines available with appraisal booklet)
THREE MAJOR STRENGTHS THREE MAJOR WEAKNESSES
C. INTEGRETY
Above board YES
NO
If no, separate note sheet is to be sent to GM (HRD), corporate office (ref. No. and date is to be
furnished.

FINAL ASSESSMENT FOR THE PERIOD _____ TO ____

To be prepared by appraisal cell only
Name : ___________________ Designation: __________________
Personal no : ______________ Dept: ______________ Unit : ________________
B. ALLOCATION OF WEIGHTAGES
LEVEL TARGETS PERFORMANCE POTENTIAL TOTAL

(X) FACTORS (Y) FACTORS(Z) (X+Y+Z)
Junior
E0 to E3 60 20 20 100
Middle
E4 to E6 45 25 30 100
Senior
E7 to E9 30 30 40 100
C. TABLE FOR DETERMINATION OF OVERALL GRADE
SCORE RATING OVERALL GRADE
Above 90% out standing A+
Above 80% & up to 90% excellent A
Above 70% & up to 80% very good B+
Above 60% & up to 70% good B
Above 50% & up to 60% fair C+
Below 50 % poor C
CHART FOR CALCULATION OF FINAL SCORE
SL NO SUBJECT WEIGHTAGE SCORE FINAL SCORE
1. Target achievement (d1)
2. Performance factors(d2)
3. Potential factors(d3)
TOTAL
D. WHWTHER THE CASE IS TO BE REFERRED TO THE

MODERATION COMMITTEE.
YES NO
E. FINAL OVERALL GRADE AND SCORE OF THE EXECUTIVE
Signature of officer of appraisal cell :

Date :
Counter signature of officer-in-charge of appraisal cell:
Date :
OVERALL COMMENTS:
OBSERVATION OF REPORTING OFFICER:
OBSERVATION OF REVIEWING OFFICER:
REMARKS:
CONVERSION TABLE.
FOR UNSKILLED / SEMISKILLED EMPLOYEES:
TOTAL FACTOR______ 12
MAXIMUM SCORE______60
CORRESPONDING GRADE TOTAL SCORE RANGE
Out standing 54-60
Very good 42-53
Good 30-41
Average 24-29
Poor 01-23
FOR SKILLED CATEGORY M0 / P0 / T0 & ABOVE :
TOTAL FACTOR________17
MAXIMUM SCORE_______-85
Out standing 77-85
Very good 60-76
Good 43-59
Average 34-42
Poor 01-33
FOR SUPERVISORY EMPLOYEES S0 & ABOVE:
TOTAL FACTOR______25
MAXIMUM SCORE_______125
Out standing 113-125
Very good 88-112
Good 63-87
Average 50-62
Poor 01-49
To be filled by all supervisory employees:
SL NO: ATTRIBUTES RATINGS
REPORTING REVIEWING
OFICER OFFICER
1 2 3 4
1. supervision
2. control
3. planning
4. co-ordination
5. organizing ability
6. record keeping
7. ability to communicate.
BIBLIOGRAPHY
Dr. C.B. MAMORIA , ‘PERSONNEL MANAGEMENT’, HIMALAYA PUBLISHING

HOUSE, MUMBAI.
C.B. GUPTA, ‘ HUMAN RESOURCE MANAGEMENT’, HIMALAYA PUBLISHING

HOUSE, MUMBAI.
PARICHAYA , ‘ MONTHLY MAGAZINE OF NALCO’, BHUBANESHWAR.
SEARCH ENGINE:
www.nalco.com
www.google.com

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Under the Guidance Of

This is to certify that the dissertation entitled “PERFORMANCE

Dr. Sarita Mishra

I Miss Surekha Nayak, do here by declare that dissertation titled

“PERFORMANCE APPRAISAL PROCEDURE” at

This project embodies the findings and observation of my study

Date Surekha Nayak

I would like to express my profound sense of gratitude and heartful

I am highly thankful to my esteemed faculty Prof. S.K. Tripathy for

Special vote of thanks Mr. Subas Chandra Jena, Asst. General

I further extend my deepest gratitude to other people working in the

Lastly I would like to thank to my family and friends for their

• THEORITICAL ASPECT OF PERFORMANCE APPRAISAL

• HUMAN RESOURCES AT NALCO

• PERFORMANCE APPRAISAL AT NALCO

Performance appraisal is a systematic evaluation of performance and potential of an

AIMS & OBJECTIVES:

It is an aid for creating and maintaining satisfactory level of performance by employee

 To find out the impact of “performance appraisal” on workman and management.

THEORITICAL ASPECT OF PERFORMANCE APPRAISAL

 To provide a valid database for personnei decissions concerning Placements. Pay,

 To provide Coaching, Counselling, Carrier pianning and motivation to

 To develop positive superior- subordinate relations.

 Performance Appraisal provides valuable information for personnel decissions

 It helps to judge the effectiveness of recruitment, selection, placement and

 It is useful in analysing training and development needs.

 It promotes a positive work environment which contributes to productivity.

Appraisal records protect management from charges of discrimination levelled by

 Communicating the standards.

 Comparing the actual with the standards.

 Discussing the appraisai.

 Taking corrective actions.

TRADITIONALMETHODS MODERN METHODS

2 Starigth Ranking 2. HumanResource

6 Check List method 4. M B O

The different traditional methods are as follows:

1. Straight ranking method:

2. Paired comparison method:

This is a traditional form of appraisal used in most government organizations. It is a report

4. Free form or Essay method:

5. Forced distribution method:

6. Graphic rating scales:

7. Check list method:

8. Critical incident method:

9. Group appraisal method:

10. Field review method:

The modern methods of performance appraisal:

The most effective of all the modern methods of performance appraisal is

• Set organizational goals

• Defining performance targets

The advantages of this goal setting approach are:-

• MBO helps to avoid role ambiguity and role conflict

• MBO provides objective criteria for evaluating performances.

• MBO provides active participation of subordinates in goal setting and performance

• MBO helps in developing management. It is a problem solving tool.

• MBO leads to coordination, harmony between objectives at different levels.

National Aluminium Company Limited (Nalco) is Asia's largest integrated aluminium

power generation, rail and port operations.

Commissioned during 1985-87, under extremeSy difficult logisties of project

propelling self-sustained growth.

2001 certification of quality management, LME registration of products, environment

has continued to add value and is posed to grow further.