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A Project Report On Performance Appraisal in National Fertilizer Nangal
A Project Report On Performance Appraisal in National Fertilizer Nangal
On
Performance Appraisal
In
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INDEX
Contents:-
Preface
Acknowledgement
Declaration
Executive summary
Introduction of Company
Introduction of Project
Objectives of study
Scope of study
Limitation of study
Research methodology
Conceptual framework
Findings
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PREFACE
Classroom lectures must be correlated with practical training to make the training
realistic.
Practical Training play an important role one's skills in employees regarding satisfaction,
regarding the leave packages, regarding the job ,regarding the salary given to the
employees , work practical pay scale, promotion and all any other facilities.
To successfully analysis the reliability of the situation, I have taken up the project. I wish
these going through this , will not find it reliable but will find useful information from it.
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ACKNOWLEDGEMENT
Sometimes words fall short to show gratitude, the same happened with me during this
project. The immense help and support received from National Fertilizer Nangal Limited
overwhelmed me during the project.
I am extremely grateful to the entire team of National Fertilizer Nangal and also Mr.
Shubhamkar Mitra HRD Manager of National Fertilizer Nangal who have shared their
expertise and knowledge with me and without whom the completion of this project would
have been virtually impossible.
This present study is the result of continuous support and guidance of the eminent faculty
member of my institute. I am internally and intellectually indebted to my guide Mr.
Ashutosh Verma (faculty Management dept.) who helped me to draw out the pearls
from the ocean of thoughts over the subject and always encouraged me to enhance my
knowledge by providing me the guidance about the selective material which I should read.
At the end I also thank my senior and colleague for their helping behavior without whom
it would be difficult to complete this work successfully. I would give special thanks to
my parents for their proper guidance and moral support.
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DECLARATION
I hereby Declare the project work entitled "Performance Appraisal" to the National
Fertilizer Nangal. It is a record of original work completed by me, all the information in
the project is the result of my hard work and it has not published anywhere earlier.
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Introduction of NFL
Company profile
National Fertilizers Limited (NFL)was registered on 23rd August 1974 with an
authorized capital of 500 corer. NFL set up two fertilizers plan in Bathinda (Pb)and
Panipat (Haryana), NFL has Fertilizers sector over the years.
Company has expended into multi unit company with four manufacturing units with
various technology . Three of these units are strategically located in the consumption are
as of Punjab and Haryana and the company has an installed capacity of 35.49 lack MT of
Nitrogenous fertilizers.
The plants at Nangal Bhatinda and Panipat are based on partial oxidatiary of fuel oil,
/high, petroleum stock and Matching Urea capacity of 1550 per day at Bhatinda and
Panipat are 1450 MT per day Urea at Nangal while the rust being covert to industrial
products as per demand .
The NFL is the second largest producer of urea in the country with a total share of 15.5%
and largest urea producer amongst public sector urea producing company
NFL has an authorized capital of Rs.1000 crore and a paid up capital of Rs.490.58 crore
out of which government of India held 89.71% share and 10.29% shares are held by
financial institutions.
NFL is engaged in producing and marketing neem coated other allied urea bio-fertilizers
(solid and liquid) and industrial products like Ammonia Nitric Acid, Ammonium Nitrate ,
Sodium Nitrate.
The company is equally sensitive and committed towards corporate social responsibility.
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INTRODUCTION OF PROJECT
The study is learning the process of performance appraisal in National Fertilizer Nangal.
The employees of National Fertilizer Nangal are fully satisfied with their job. My main
reason to select this topic was to observe how people work in the organization, the
process or method by which individual’s performance were analyses.
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OBJECTIVE OF STUDY:
3- To identify the strength and weakness inside the employee in National Fertilizer
Nangal.
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SCOPE OF STUDY:
The strength of any organization is its people if people are attended to properly by
recognizing their talents, developing their capabilities and utilizing them appropriately,
organizing are likely to be dynamic and grow fast. Ultimately the variety of tasks in any
organization has to be accomplished by the people. Some of them may have capabilities
to do certain task better than other tasks, and some of them may not have capability to do
the task assigned to them. In any case of the important process goals of dynamic
organization is to assure that its people are capable of doing the variety of tasks
associated with their role/ position.
My interest is totally in H.R. and the above study would brighten my career in H.R.
By this study I got an experience about how the organization works, attitude of people
working there also it got a chance to differentiate between practical and theoretical work.
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RESEARCH METHODOLOGY:
Sources of data:
The data collected for the project work are from two sources that is primary and
secondary sources.
Primary Data:
For this research I have followed the structure personnel interviews after deciding
to carry out a survey research by performance appraisal sample from other
company’s. The opinion of other company’s was collected using appropriate
questionnaire. This observation was brought about with the help of attention.
Secondary Data:
The secondary data were collected from the internet, Ashwathapa H.R book & the
manual published by the company.
Method of analysis:
Graph
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WHAT IS PERFORMANCE APPRAISAL?
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personnel, and judgmental evaluation. Judgmental evaluations are the most commonly
used with a large variety of evaluation methods. A performance appraisal is typically
conducted annually. The interview could function as “providing feedback to employees,
counseling and developing employees, and conveying and discussing compensation, job
status, or disciplinary decisions”. Performance appraisal is often included in performance
management systems. Performance management systems are employed “to manage and
align" all of an organization's resources in order to achieve highest possible performance.
“How performance is managed in an organization determines to a large extent the success
or failure of the organization. Therefore, improving performance appraisal for everyone
should be among the highest priorities of contemporary” organizations.
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How is Performance managed?
Good performance by the employees creates a culture of excellence, which benefits the
organization in the long run. The activity includes evaluation of jobs and people both,
managing gender bias, career planning, and devising methods of employee satisfaction
etc. The efforts are to make to generate the individual’s aspirations with the objectives of
the organization. Organization has to clear the way of career advancements for talented
and hardworking people. Fear of any kind from the minds of the employees should be
removed so that they give best to their organization. Allow free flow of information.
Communication network should be designed in such a way no one should be allowed to
become a hurdle. This enables the managers to take correct decisions and that too quickly.
Today’s working climate demands a great deal of commitment and effort from employees,
who in turn naturally expect a great deal more from their employers. Performance
appraisal is designed to maximize effectiveness by bringing participation to more
individual level in that it provides a forum for consultation about standards of work,
potential, aspirations and concerns. It is an opportunity for employees to have
significantly greater influence upon the quality of their working lives. In these times of
emphasis on “quality”, there is a natural equation: better quality goods and services from
employees who enjoy better quality “goods and services” from their employers.
Performance appraisal must be seen as an intrinsic part of a manager’s responsibility and
not an unwelcome and time-consuming addition to them. It is about improving
performance and ultimate effectiveness. Performance appraisal is a systematic means of
ensuring that managers and their staff meet regularly to discuss post and present
performance issues and to agree what future is appropriate on both sides. This meeting
should be based on clear and mutual understanding of the job in question and the
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standards and outcomes, which are a part of it. In normal circumstances, employees
should be appraised by their immediate managers on one to one basis. Often the
distinction between performance and appraising is not made. Assessment concerns itself
only with the past and the present. The staff is being appraised when they are encouraged
to look ahead to improve effectiveness, utilize strengths, redress weaknesses and examine
how potentials and aspirations should match up. It should also be understood that pushing
a previously prepared report across and desk cursorily inviting comments, and expecting
it to be neatly signed by the employee is not appraisal - this is merely a form filling
exercise which achieves little in terms of giving staff any positive guidance and
motivation.
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THE APPRAISAL OF PERFORMANCE SHOULD BE GEARED TO:
It is widely accepted that the most important factor in organization effectiveness is the
effectiveness of the individuals who make up the organization. If every individual in the
organization becomes more effective, then the organization itself will become more
effective. The task of reviewing situations and improving individual performance must
therefore be a key task for all managers. For appraisal to be effective, which means
producing results for the company, each manager has to develop and apply the skills of
appraisal. These are: -
Appraisal can then become a way of life, not concerned simply with the regulation of
rewards and the identification of potential, but concerned with improving the
performance of the company. The benefits of appraisal in these terms are immediate and
accrue to the appraising manager, the subordinate manager/employee, and to the
company as a whole
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Who Conducts Performance Appraisals
Human Resource Management & Performance Management
The performance management process begins with leadership within the organization
creating a performance management policy. Primarily, management governs performance
by influencing employee performance input (e.g. training programs) and by providing
feedback via output (i.e. performance assessment and appraisal). “The ultimate objective
of a performance management process is to align individual performance with
organizational performance”. A very common and central process of performance
management systems is performance appraisal. The performance appraisal process should
be able to inform employees about the “organization's goals, priorities, and expectations
and how well they are contributing to them”.
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When Performance Appraisals are Conducted
Other researchers propose that the purpose of performance appraisal and the frequency of
their feedback are contingent upon the nature of the job and characteristics of the
employee. For example, employees of routine jobs where performance maintenance is the
goal would benefit sufficiently from annual performance appraisal feedback. On the other
hand, employees of more discretionary and non-routine jobs, where goal-setting is
appropriate and there is room for development, would benefit from more frequent
performance appraisal feedback.
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Methods of Collecting Performance Appraisal Data
Traditional Method
This traditional form of appraisal, also known as "Free Form method" involves a
description of the performance of an employee by his superior. The description is an
evaluation of the performance of any individual based on the facts and often includes
examples and evidences to support the information. A major drawback of the method is
the inseparability of the bias of the evaluator.
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2. STRAIGHT RANKING METHOD:
This is one of the oldest and simplest techniques of performance appraisal. In this method,
the appraiser ranks the employees from the best to the poorest on the basis of their overall
performance. It is quite useful for a comparative evaluation.
3. PAIRED COMPARISON:
A better technique of comparison than the straight ranking method, this method compares
each employee with all others in the group, one at a time. After all the comparisons on
the basis of the overall comparisons, the employees are given the final rankings.
In this method of Performance appraisal, the evaluator rates the employee on the basis of
critical events and how the employee behaved during those incidents. It includes both
negative and positive points. The drawback of this method is that the supervisor has to
note down the critical incidents and the employee behavior as and when they occur.
5. FIELD REVIEW:
In this method, a senior member of the HR department or a training officer discusses and
interviews the supervisors to evaluate and rate their respective subordinates. A major
drawback of this method is that it is a very time consuming method. But this method
helps to reduce the superiors’ personal bias.
6. CHECKLIST METHOD:
The rater is given a checklist of the descriptions of the behavior of the employees on job.
The checklist contains a list of statements on the basis of which the rater describes the on
the job performance of the employees.
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7. GRAPHIC RATING SCALE:
In this method, an employee’s quality and quantity of work is assessed in a graphic scale
indicating different degrees of a particular trait. The factors taken into consideration
include both the personal characteristics and characteristics related to the on the job
performance of the employees. For example a trait like Job Knowledge may be judged on
the range of average, above average, outstanding or unsatisfactory.
8. FORCED DISTRIBUTION:
To eliminate the element of bias from the rater’s ratings, the evaluator is asked to
distribute the employees in some fixed categories of ratings like on a normal distribution
curve. The rater chooses the appropriate fit for the categories on his own discretion.
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Modern Method
MBO
The concept of ‘Management by Objectives’ (MBO) was first given by Peter Drucker in
1954. It can be defined as a process whereby the employees and the superiors come
together to identify common goals, the employees set their goals to be achieved, the
standards to be taken as the criteria for measurement of their performance and
contribution and deciding the course of action to be followed.
The essence of MBO is participative goal setting, choosing course of actions and decision
making. An important part of the MBO is the measurement and the comparison of the
employee’s actual performance with the standards set. Ideally, when employees
themselves have been involved with the goal setting and the choosing the course of action
to be followed by them, they are more likely to fulfill their responsibilities.
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MBO process
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360 degree performance appraisal
360 degree feedback, also known as 'multi-rater feedback', is the most comprehensive
appraisal where the feedback about the employees’ performance comes from all the
sources that come in contact with the employee on his job.
360 degree respondents for an employee can be his/her peers, managers (i.e. superior),
subordinates, team members, customers, suppliers/ vendors -
Anyone who comes into contact with the employee and can provide valuable insights and
information or feedback regarding the "on-the-job" performance of the employee.
1. Self-appraisal
2. Superior’s appraisal
3. Subordinate’s appraisal
4. Peer appraisal.
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ASSESSMENT CENTRES:
An assessment center typically involves the use of methods like social/informal events,
tests and exercises, assignments being given to a group of employees to assess their
competencies to take higher responsibilities in the future. Generally, employees are given
an assignment similar to the job they would be expected to perform if promoted. The
trained evaluators observe and evaluate employees as they perform the assigned jobs and
are evaluated on job related characteristics.
The major competencies that are judged in assessment centers are interpersonal skills,
intellectual capability, planning and organizing capabilities, motivation, career
orientation etc. assessment centers are also an effective way to determine the training and
development needs of the targeted employees.
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BEHAVIORALLY ANCHORED RATING SCALES:
In this method, an employee’s actual job behavior is judged against the desired behavior
by recording and comparing the behavior with BARS. Developing and practicing BARS
requires expert knowledge.
Human resources are valuable assets for every organization. Human resource accounting
method tries to find the relative worth of these assets in the terms of money. In this
method the Performance appraisal of the employees is judged in terms of cost and
contribution of the employees. The cost of employees include all the expenses incurred
on them like their compensation, recruitment and selection costs, induction and training
costs etc whereas their contribution includes the total value added (in monetary terms).
The difference between the cost and the contribution will be the performance of the
employees. Ideally, the contribution of the employees should be greater than the cost
incurred on them.
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LIMITATION OF STUDY:
• While making the project in National Fertilizer Nangal. The main limitation that I
faced was the secrecy adopted by the company in providing the information.
• Time was the limitation while carrying the project. I had to complete the project
in 30 days thus the project could have been better if more time was provided to me.
• The respondents were too busy to provide me proper time that was required by me.
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FINDINGS
95% employees feel that their jobs are according to there qualification.
All senior production officers agree that performance appraisal system helps them
to perform better.
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RECOMMENDATION
The company should appraise the performance of the workers by giving them
some incentives, which motivate them to work to their fullest capacity and to
motivate them to work more and show good and better results.
For the top management of the company it should offer them holiday package,
appraise performance by recognizing there work in meetings etc. This will help to
raise their moral and they can work better. They don’t want financial help as they
earn enough to maintain their status.
For the lower group the company can increase their wages, give them pension
schemes, provide them the medical facilities etc. because they want financial help
from the company to insure their proper living.
The criteria decided upon which the performance has to be rated should not be
fixed it should be changed from time to time.
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CONCLUSION
This study was a learning experience where I came to know at experience the real world
exercise of HR Department. It has helped me to get the feel of organization.
So after my full study I have to reached to a conclusion that needs to spread the
awareness about the topic among the employees.
I wish for the bright future of the company with lot of thanks for everything that I gained
in Reliance.
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