A Study On Performance Appraisal System at ONGC Ltd

A
Summer Internship Project
On
“A Study On Performance Appraisal System at ONGC Ltd”
Submitted To
S.V Institute of Management, Kadi
A Report Submitted in partial fulfillment of the Requirements for the award of MBA
In
Kadi Sarva Vishwavidhalaya, Gandhinagar
Under the guidance of

Prof. Khushbu Shah
Assistant Professor
S.V Institute Of Management- Kadi
Submitted By:
No Name Exam No
1 Ray Anuradha 542008
Batch 2018-20
S.V Institute of Management, Kadi. Page 1

TABLE OF CONTENT
Page no
Acknowledgement 6
Preface 7
Executive Summary 8
Chap1 Introduction 9
 Introduction Of oil and gas industry 10-12
 Introduction Of Company 13-24
 Introduction Of Performance Management System 25-30
 Performance Management System&PAR In ONGC 31-36
Chap2 Literature Review 37-40
 Literature Gap 41
Chap:3 Research Methodology 42-44
Chap:4 Analysis And Interpretation 45-55
Chap:5 Inferential Statistics 56-64
Chap:6 Finding 65-66
Chap:7 Conclusion 67-68
Chap:8 Bibliography 69-70
Chap:9 Annexure 71-73

INSTITUTE CERTIFICATE:
This is to certified that this Summer Internship Project titled “A Study on Performance Appraisal
System at ONGC Ltd is the bonafide work of Ms. Ray Anuradha (Exam No-542008) who carried out
the research under my supervision. I also certify further, that to the best of my knowledge the work
reported herein does not form part of any other project report or dissertation on the basis of which a
degree or award was conferred on an earlier occasion on this or any other candidate.
Dr. Bhavin Pandya, Prof. Khusbhu shah

Director Project Guide
S. V. Institute of Management - Kadi Assistant Professor

S. V. Institute of Management - Kadi

STUDENT DECLRATION:
I Ray Anuradha(Exam No.542008), hereby declare that the report for Summer Internship Project
titled "A Study on Performance Appraisal System at ONGC Ltd” is a result of My own work and
My indebtedness to other work publications, references, if any, have been duly acknowledged.
Place: Kadi
Date: Ms. Ray Anuradha

ACKNOWLEDGEMENT:
I much obliged to my Kadi Sarva Vishwavidyalaya University and S. V. Institute of Management, Kadi
for giving me this kind opportunity which for learning the research. During the successful completion of
our SIP project I have come across many person who had helped me in this and I also thankful to the
respondents while doing a survey. I would like to express innocence sense of gratitude to all of them.
I would like to extend my gratitude towards Kadi Sarva Vishwavidyalaya University and S.V.
Institute of Management, Kadi which had provided me to gain knowledge from all the angles. I would
like to express my credit to our Head of Department Dr. Bhavin Pandya for giving an opportunity to
learn about the Research & Development.
I would like to express my special thanks to my project Guide Prof. Khushbu Shah who had help me in
all the ways for making this project a successful and without her guidance for this project I would not
have come in to the kind of appearance. She is always been the source of encouragement, inspiration,
which ultimately leads me for point of success. I would like to thanks all the respondents of
questionnaire who had provided me their valuable time. I would like to those people also who helped me
directly or indirectly in the completion of my project report.

PREFACE:
As a management business administration (MBA).it is well evident that work experience is an
indispensable part of every professional course. In the similar manner, practical training is must for
every student who is undergoing management course. Without the practical exposure, one can not
consider herself as a qualified and capable manager. During the project period, student can learn through
her experience, the real situation of market and corporate world and to put her theoretical knowledge
into practice. The purpose of training is basically to bridge the gap among job requirement and present
competency of an employee.
I have conducted A study on Performance Appraisal System at ONGC ltd. I have chosen this topic
because the performance appraisal is an essential part of human resource department‘s contribution to an
organization. An effective appraisal may not only eliminate behavior and work quality problem, it can
motivate an employee to contribute more.
So, Study and research on this topic it is very exciting and interesting for us.

EXECUTIVE SUMMARY:
Managing human resources in today’s dynamic environment is becoming more and more complex as
well as important. Recognition of people as a valuable resource in the organization has led to increases
trends in employee maintenance, job security, etc. My research project deals with “Performance
Appraisal as carried out in ONGC Ltd, Mehsana”. In this report, I have studied and evaluated the
performance appraisal process as it is carried out in the company.
The first section of my report deals with a detailed company profile. It includes the company’s history:
its activities and operations, organizational structure, and department, etc. this section attempts to give
detailed information about the company and the nature of its functioning and a brief explanation to
performance appraisal is given. It contains the definition, process. Method and significance of
performance appraisal.
The second section deals with with the literature review and literature gap of the project.
In the third section of my report, contains my Research methodology, data analysis and interpretation.
In the Fourth section of my report deal with the Inferential Statistics and used Reliability analysis, Chi
square,T test and ANOVA test and interpretation.
The fifth and final section of this report consists of extra information that I have related to the main
contents of the report. These annexure includes the Questionnaire on the basis of which the primary data
was collected and research study was conducted.

CHAP-I
INTRODUCTION

INTRODUCTION TO OIL AND GAS INDUSTRY:
India is one of the fastest growing major economies in the world and the third largest consumer of
petroleum products, after US and China.1 Although there is an increased focus on gas and renewable,
demand for oil has always been on the rise, and is estimated to grow at least until 2040.2 As per the
report published by India Brand Equity Foundation (IBEF)3, India’s energy demand is expected to
double to 1,516 million tonnes of oil equivalent (Mtoe) by 2035 from 723.9 in 2016. Moreover, India’s
share in global primary energy consumption is projected to increase by two-folds by 2035.
India’s total oil imports rose 4.24 percent year on-year to US$ 86.45 billion in 2016-17. India’s oil
consumption grew 8.3 percent year-on-year to 212.7 million tonnes in 2016, as against the global growth
of 1.5 percent, thereby making it the third-largest oil consuming nation in the world. India is the fourth-
largest Liquefied Natural Gas (LNG) importer after Japan, South Korea and China, and accounts for 5.8
percent of the total global trade.
In 2016-17, India consumed 193.745 MMT of petroleum products, while the consumption stood at
184.674 MMT during 2015-16. In 2017-18, up to September, the figure stood at 96.82 MMT. India has
always been an import dependent nation in the Oil and Natural Gas (“O&NG”) sector. India’s domestic
crude oil production of 36.95 million tonnes in 2015-16 barely met 20 percent of its oil needs. Natural
gas output at 32.249 billion cubic meters meets less than half of its needs. As a result of significant
dependence on import, Prime Minister Narendra Modi has set a target to reduce dependence on crude
imports by 10% by 2022.
In India, the O&NG industry has huge potential and contributes over 15% to the India’s GDP. The
landscape in the O&NG sector promises to be dynamic with scope for growth of business entities. This
industry has always attracted foreign direct investments, and according to data released by the
Department of Industrial Policy and Promotion (DIPP), the petroleum and natural gas sector attracted
FDI worth US$ 6.86 billion Among April 2000 and September 2017. With 3.14 million sq. km of
potential reserves lying unexplored until 2016, India’s potential in the oil and gas sector is immense and
there exists vast headroom for new discoveries
In India, the O&NG industry has huge potential and contributes over 15% to the India’s GDP. The
landscape in the O&NG sector promises to be dynamic with scope for growth of business entities. This
industry has always attracted foreign direct investments, and according to data released by the
Department of Industrial Policy and Promotion (DIPP), the petroleum and natural gas sector attracted
FDI worth US$ 6.86 billion Among April 2000 and September 2017. With 3.14 million sq. km of
potential reserves lying unexplored until 2016, India’s potential in the oil and gas sector is immense and
there exists vast headroom for new discoveries by the massive domestic market. Separately, the
Government of India of India’s push towards a gas based economy is estimated to present new
investments and opportunities in this area. India’s focus on a gas based economy is in line with the
global commitment made at the Paris meeting on climate change, which aims to reduce India’s carbon

emissions by up to 35% from 2005 levels by 2030 and producing 40% of the power from non-fossil fuel
sources by 2030. These developments present an opportunity for India’s downstream and midstream oil
and gas sectors
It is expected that India’s petrochemical market will grow at a compound annual growth rate of 10%
over the next five years and reach the $100 billion mark by 2022. The industry can potentially enhance
India’s growth through the development of niche products and promotion of exports
Major Industry Players
The major industry players in India’s O&NG sector currently are:
1: Upstream Sector: Oil and Natural Gas Corporation (ONGC), Oil India Limited and Crain Energy.
ONGC is the largest upstream company in E&P segment accounting for approximately 61.5 percent of
India’s total oil output. During the Financial year 2016, 1,118,000 meters of wells were explored and
developed in India, and during the same period, 506 wells were drilled in India.
2: Midstream Sector: Indian Oil Corporation, Gas Authority of India Limited, etc. Indian Oil
Corporation operates a 11,214 km network of crude, gas and product pipelines, with a capacity of 1.6
million barrels per day (mbpd) of oil and 10 million metric standard cubic meters per day (mmscmd) of
gas. This is around 30 per cent of the India’s total pipeline network.
3. Downstream Sector: Indian Oil Corporation, Bharat Petroleum Corporation Limited, Hindustan
petroleum, etc. Indian Oil Corporation is the largest company, controlling 10 out of 22 Indian refineries,
with a combined capacity of 1.31 mbpd.
MARKET SHARE OF OIL AND GAS COMPANIES:
India is expected to be one of the largest contributors to non-OECD petroleum consumption growth
globally. Oil imports rose sharply to US$ 87.37 billion in 2017-18 from US$ 70.72 billion in 2016-17.
India retained its spot as the third largest consumer of oil in the world in 2017 with consumption of 4.69
mbpd of oil in 2017, compared to 4.56 mbpd in 2016.
India was the fourth-largest Liquefied Natural Gas (LNG) importer in 2017 after Japan, South Korea and
China. LNG imports increased to 26.11 bcm in 2017-18 from 24.48 bcm in 2016-17.
Gas pipeline infrastructure in the country stood at 16,226 km at the beginning of February 2019.

The key domestic oil and gas companies are:
Company Financial Year 2017 (US$ billions)

Indian Oil Corporation Limited 55.29
Reliance Industries 48.46
Bharat Petroleum Corporation Limited 31.13
Hindustan Petroleum Corporation Limited 29.26
ONGC 11.99
Gail India Limited 7.68
Oil India Limited 1.69

COMPANY INTRODUCTION:
Oil and Natural Gas Corporation (ONGC) is an Indian multinational Oil and Gas company. Its registered
office is now at Deendayal Urja Bhavan, Vasant Kunj, New Delhi 110070 India. It is a Public Sector
Undertaking (PSU) of the Government of India, under the administrative control of the Ministry of
Petroleum and Natural Gas. It is India's largest oil and gas exploration and production company. It
produces around 70% of India's crude oil (equivalent to around 30% of the country's total demand) and
around 62% of its natural gas.
ONGC was founded on 14 August 1956 by Government of India, which currently holds a 68.94% equity
stake. It is involved in exploring for and exploiting hydrocarbons in 26 sedimentary basins of India, and
owns and operates over 11,000 kilometers of pipelines in the country. Its international subsidiary ONGC
Vides currently has projects in 17 countries.
ONGC has discovered 6 of the 7 commercially producing Indian Basins, in the last 50 years, adding
over 7.1 billion tonnes of In-place Oil & Gas volume of hydrocarbons in Indian basins. Against a global
decline of production from matured fields, ONGC has maintained production from its Brownfield like
Mumbai High, with the help of aggressive investments in various IOR (Improved Oil Recovery) and
EOR (Enhanced Oil Recovery) schemes. ONGC has many matured fields with a current recovery factor
of 25–33%. Its Reserve Replacement Ratio for Among 2005 and 2013, has been more than one During
FY 2012–13, ONGC had to share the highest ever under-recovery of INR 8993.78 billion (an increase of
INR 567.89 million over the previous financial year) towards the under-recoveries of Oil Marketing
Companies (IOC, BPCL and HPCL).On 1 November 2017, the Union Cabinet approved ONGC for
acquiring majority 51.11% stake in HPCL (Hindustan Petroleum Corporation Limited). On Jan 30th
2018, Oil & Natural Gas Corporation acquired the entire 51.11% stake of Hindustan Petroleum
Corporation.
In a government survey for fiscal year 2016-17, it was ranked as the largest profit making PSU in
India. It is ranked 11th among the Top 250 Global Energy Companies by Platts

HISTORY:
ONGC was set up under the visionary leadership of Pandit Jawaharlal Lal Nehru. Pandit Nehru reposed
faith in Shri Keshav Dev Malviya who laid the foundation of ONGC in the form of Oil and Gas division,
under Geological Survey of India, in 1955. A few months later, it was converted into Oil and Natural
Gas Directorate. The directorate was converted into Commission and christened Oil and Natural Gas
Commission on 14th August 1956. In 1994, Oil and Natural Gas Commission was converted into a
corporation, and in 1997it was recognized as one of the Navratnas by the Government of India.
Subsequently, it has been conferred with Maharatna status in the year 2010.
Over 60 years of its existence ONGC has crossed many a milestone to realize the energy dreams of
India. The journey of ONGC, over these years, has been a tale of conviction, courage and commitment.
ONGCs’ superlative efforts have resulted in converting earlier frontier areas into new hydrocarbon
provinces. From a modest beginning, ONGC has a grown to be one of the largest EandP companies in
the world in terms of reserves and production business i.e., Acquisition, Processing and Interpretation
(API) of Seismic data, drilling, work-over and well stimulation operations, engineering and construction,
production, processing, refining, transportation, marketing, applied RandD and training, etc.
ONGC Growth
ONGC was set up under the visionary leadership of Pandit Jawaharlal Nehru. Pandit Nehru reposed faith
in Shri Keshav Dev Malviya who laid the foundation of ONGC in the form of Oil and Gas division,
under Geological Survey of India, in 1955. A few months later, it was converted into an Oil and Natural
Gas Directorate. The Directorate was converted into Commission and christened Oil & Natural Gas
Commission on 14th August 1956.
"Not only had India..Set up her own machinery for oil exploration and exploitation... an efficient oil
commission had been built where a large number of bright young men and women had been trained and
they were doing good work" said Pandit Jawaharlal Nehru, India's first Prime Minister to Lord
Mountbatten, on ONGC in 1959.
In 1994, Oil and Natural Gas Commission was converted in to a Corporation, and in 1997 it was
recognized as one of the Navratnas by the Government of India. Subsequently, it has been conferred
with Maharatna status in the year 2010.
In its 60 years of illustrious journey, ONGC has crossed many a milestone to realize the energy
aspirations of India. The journey of ONGC, over these years, has been a tale of conviction, courage and
commitment. ONGCs’ superlative efforts have resulted in converting earlier frontier areas into new
hydrocarbon provinces. From a modest beginning, ONGC has grown to be one of the largest E&P
companies in the world in terms of reserves and production.
The Company’s Evolution can be summarized as under:
 1955 – Inception

 1958 – First Oil in Cambay
 1960 – Oil gas discovery in Gujarat
 1963 – Oil in Assam
 1965 – Concept of ONGC Videsh Operations
 1970 – first Offshore well
 1974 – Mumbai High discovered
 1976 – Bassein Gas field of Mumbai High
 1984 – GAIL formed out of ONGC
 1993 – ONGC a limited company
 1993 – Govt of India divest 2% share
 1994 – 2% share to employees
 1999 – Equity swap ONGC, IOC, GAIL
 2003 – Acquired Mangalore Refineries Petrochemicals Ltd from Birla Group
 2003 – 1st equity Oil & gas from Sudan / Vietnam
 2004 – Govt of India divests 10%
 2006 – Diversification – ONGC Petro additives Ltd and ONGC Mangalore Petro Ltd
 2007 – ONGC Energy Centre formed
 2010 – Coal Bed Methane Production
 2013 – Oil at Kazakhstan/Mozambique
With more than 50 years of Exploration ONGC had discovered 6 of the 7 Producing basins of India.
These Oil Producing Basins are;
 1958 – Cambay, Gujarat

 1967 – Rajasthan
 1973 – Assam
 1974 – Mumbai Offshore
 1980 – Krishna Godavari Basin
 1985 – Cauvery Basin
ONGC as an integrated Oil & Gas Corporate has developed in-house capability in all aspects of
exploration and production business i.e., Acquisition, Processing & Interpretation (API) of Seismic data,
drilling, work-over and well stimulation operations, engineering & construction, production, processing,
refining, transportation, marketing, applied R&D and training, etc.

ONGC VISION AND MISSION
Vision
To be global leader in integrated energy business through sustainable growth, knowledge excellence and
exemplary governance practices.
Mission
World Class
 Dedicated to excellence by leveraging competitive advantages in R&D and technology with

involved people.
 Imbibe high standards of business ethics and organizational values.
 Abiding commitment to safety, health and environment to enrich quality of community life.
 Foster a culture of trust, openness and mutual concern to make working a stimulating and
challenging experience for our people.
 Strive for customer delight through quality products and services.
Integrated In Energy Business
 Focus on domestic and international oil and gas exploration and production business
opportunities.
 Provide value linkages in other sectors of energy business.
 Create growth opportunities and maximize shareholder value.
Dominant Indian Leadership
 Retain dominant position in Indian petroleum sector and enhance India's energy availability.
Awards and Recognition:
 ONGC Is The top Employer in the Energy sector in India, in the Randstad Awards 2013.
 ONGC was one of 12 winners of the 'Golden Peacock Award 2014' for its corporate social
responsibility practices, and one of 24 winners of the 'Golden Peacock Award 2013' in
the occupational safety and health category.
 In April 2013, it was ranked at 155th place in the Forbes Global 2000 for 2012.
 In 2011, ONGC was ranked 39th among the world's 105 largest listed companies in 'transparency in
corporate reporting' by Transparency International making it the most transparent company in India.
 It was conferred with 'Maharatna' status by the Government of India in November 2010. The
Maharatna status to select PSUs allows more freedom in decision making.
 In February 2014, FICCI conferred it with Best Company Promoting Sports Award.

 ONGC wins the "Greentech Excellence Award" for the year 2013 in Platinum Category
 ONGC was ranked 82nd among India's most trusted brands according to the Brand Trust Report
2012, a study conducted by Trust Research Advisory. In the Brand Trust Report 2013, ONGC was
ranked 191st among India's most trusted brands and subsequently, according to the Brand Trust
Report 2014, ONGC was ranked 370th among India's most trusted brands.[40]
 ONGC is the title sponsor for the first edition of the Corporate social responsibility (CSR) Award
organized by Amar Ujala

COMPETITIVE ANALYSIS:
1: Reliance industries
Reliance is one of ONGC's top competitors. Reliance is a Public

company that was founded in Mumbai, Maharashtra in 1966. Reliance
is in the Oil & Gas Exploration & Production field. Reliance has
154,169 more employees vs. ONGC.
2: Indian Oil Indian Oil is perceived as one of ONGC's biggest rivals. Indian Oil
was founded in 1959 in New Delhi, Delhi. Indian Oil operates in the
Oil & Gas Storage & Transportation industry. Indian Oil generates
$68.3B more revenue than ONGC.
3: Bharat Petroleum: Bharat Petroleum is a top competitor of ONGC. Bharat

Petroleum's headquarters is in Mumbai, Maharashtra, and was
founded in 1952. Bharat Petroleum competes in the Consumable
Fuels field. Bharat Petroleum generates 279% of ONGC's
revenue.

ONGC SWOT ANALYSIS:
Below is the Strengths, Weaknesses, and Opportunities & Threats (SWOT) Analysis of ONGC.
Strengths:
 ONGC Is the India’s largest crude oil and natural gas producer.
 Strong brand name of ONGC Company.
 High performance making and high revenue.
 Has over 30000 Employees in its workforce.
 ONGC produces about 30% of India’s crude oil requirement.
 Contribute 70%+ of India’s crude oil production and 80%+ of India’s natural gas corporation.
 Commemorative coin set was released to mark 50 years of ONGC.
Weaknesses:
 Being a government organization slow bureaucratic decision can reduce efficiency.

 Intense competition means limited market share growth for ONGC.
Opportunities:
 Increasing fuel/oil prices means higher margins for ONGC

 Increasing natural gas market
 ONGC can increase business by more oil well discoveries
 Expand global export market and have international tie-ups
Threats:
 Government regulations affects business of ONGC
 High competition form Indian as well as global oil companies
 .Hybrid and electric cars in the market can reduce fuel consumption
 Fluctuating crude oil prices can affect the business

ONGC GROUP OF COMPANIES

ORGANIZATIONAL STRUCTURE:

HR DEPARTMENT:
The objectives of Human Resource Department are Human Resource Planning, Recruitment and
Selection, Training and Development, Transfer and Promotion, Performance Appraisal and so on.
ONGC has a very dynamic and talented Human Resource Department, which takes care of functions
like recruitment, employment policies, induction, compensation and benefits, performance evaluation
and training and development.
HR Vision
To attain organizational excellence by developing and inspiring the true potential of company’s human
capital and providing opportunities for growth, well-being and enrichment.
HR Mission
To create, a value and knowledge based organization by inculcating a culture of learning, innovation and
team working and aligning business priorities with aspirations of employees leading to development of
an empowered, responsive and competent human capital.
HR Objective:
 Enrich and sustain the culture of integrity, belongingness, teamwork, accountability and
innovation.
 Enhance employee competencies continuously.
 Build a joyous work place.
 Promote high performance work systems.
 Upgrade and innovate HR practices, systems and procedures to global benchmarks.
 Promote work life balance.
 Measure and Audit HR performance.
 Promote work life balance. Integrate the employee family into the organizational fabric.
 Inculcate a sense of Corporate Social responsibilities among employees.

HUMAN RESOURCE DEPARTMENT OF ONGC:
Director HR
Employee HRD Medical Security ONGC

Relations Services Academy
Corporate
Corporate Fire RTIs
Administration
RandP Service
Corporate
Functional HR
Establishment Legal
Planners
service
Corporate Policy
Group
HR CSR
Initiatives
Disciplines and
Appeals
CRC
Hqrs. Grievance
Committee
Corporate IR
CPF/PRBS/CSSS Trust
Official Language
SC/ST Cell

ONGC ACTIVITIES:
Exploration
 Offshore
 Onshore
Drilling
 Exploratory
 Development
 Work-over
 Deep Water
Production
 Offshore installations
 Onshore installations
Processing
 Plants

INTRODUCTION OF PERFORMANCE MANAGEMENT SYSTEM:
Performance Appraisal is a process of assessing, summarizing and developing the work performance
and evaluation of individual’s performance on the job potential for development and assessment of
development needs.
Performance Appraisal is the systematic evaluation of the performance of employees and to understand
the abilities of a person for further growth and development. Performance appraisal is generally done in
systematic ways which are as follows:
1. The supervisors measure the pay of employees and compare it with targets and plans.
2. The supervisor analyses the factors behind work performances of employees.
3. The employers are in position to guide the employees for a better performance.
Objectives of Performance Appraisal

Performance Appraisal can be done with following objectives in mind:
1. To maintain records in order to determine compensation packages, wage structure, salaries

raises, etc.
2. To review the performance of the employees over a given period of time.
3. To judge the gap Among the actual and desired performance.
4. To identify the strengths and weaknesses of employees to place right men on right job.
5. To maintain and assess the potential present in a person for further growth and development.
6. To provide a feedback to employees regarding their performance and related status.
7. To provide a feedback to employees regarding their performance and related status.
8. It serves as a basis for influencing working habits of the employees.
9. To review and retain the promotional and other training programmes.
10. To reduce the grievance of the employees.

PERFORMANCE APPRAISAL PROCESS:
Objective of performance appraisal
Establish Job Expectation
Design An Appraisal Programme
Feedback
Appraise Performance
Performance Interview
Performance
management Archive Appraisal data
Use Appraisal Data for appropriate Purposes

PERFORMANCE APPRAISAL METHODS:
Each method of performance appraisal has its strengths and weaknesses may be suitable for one
organization and non-suitable for another one. As such, there is no single appraisal method accepted and
used by all organizations to measure their employees’ performance.
All the methods of appraisal devised so far have been classified differently by different authors. While
DeCenzo and Robbins have classified appraisal methods into three categories: absolute methods,
relative methods and objective methods; Aswathappa has classified these into two categories past-
oriented and future-oriented.
Michael R Carrell et. All have classified all appraisal methods into as many as six categories: rating
scales, comparative methods, critical incidents, MBO and combination methods. Rock and Levis” have
classified the methods into two broad categories: narrow interpretation and broad interpretation. Beatty
and Schneier have categorized various methods of appraisal into four groups: comparative methods,
absolute methods, goal setting, and direct indices.
A more widely used classification of appraisal methods into two categories, viz., traditional methods and
modem methods, is given by Strauss and Sayles”. While traditional methods lay emphasis on the rating
of the individual’s personality traits, such as initiative, dependability, drive creativity, integrity,
intelligence, leadership potential, etc.; the modem methods, on the other hand, place more emphasis on
the evaluation of work results, i.e., job achievements than the personal traits! Modem methods tend to be
more objective and worthwhile.
1. Ranking Method:
It is the oldest and simplest formal systematic method of performance appraisal in which employee is
compared with all others for the purpose of placing order of worth. The employees are ranked from the
highest to the lowest or from the best to the worst.
In doing this the employee who is the highest on the characteristic being measured and also the one who
is lowest, are indicated. Then, the next highest and the next lowest Among next highest and lowest until
all the employees to be rated have been ranked. Thus, if there are ten employees to be appraised, there
will be ten ranks from 1 to 10.
2. Paired Comparison:
In this method, each employee is compared with other employees on one- on one basis, usually based on
one trait only. The rater is provided with a bunch of slips each coining pair of names, the rater puts a tick
mark against the employee whom he insiders the better of the two. The number of times this employee is
compared as better with determines his or her final ranking.

3. Grading Method:
In this method, certain categories of worth are established in advance and carefully defined. There can
be three categories established for employees: outstanding, satisfactory and unsatisfactory. There can be
more than three grades. Employee performance is compared with grade definitions. The employee is,
then, allocated to the grade that best describes his or her performance.
Such type of grading is done is Semester pattern of examinations and in the selection of a candidate in
the public service sector. One of the major drawbacks of this method is that the rater may rate most of
the employees on the higher side of their performance.
4. Forced Distribution Method:

This method was evolved by Tiffin to eliminate the central tendency of rating most of the employees at a
higher end of the scale. The method assumes that employees’ performance level confirms to a normal
statistical distribution i.e., 10,20,40,20 and 10 per cent. This is useful for rating a large number of
employees’ job performance and promo ability. It tends to eliminate or reduce bias.
It is also highly simple to understand and easy to apply in appraising the performance of employees in
organizations. It suffer from the drawback that improve similarly, no single grade would rise in a
ratings.
5. Behaviorally Anchored Rating Scales (BARS):
Behaviorally Anchored Rating Scales is a relatively new technique which combines the graphic rating
scale and critical incidents method. It consists of predetermined critical areas of job performance or sets
of behavioral statements describing important job performance qualities as good or bad
6. Management by Objectives (MBO):
MBO is a method of mutual goal-setting, measuring progress towards the goals, taking action to assure
goal attainment, feedback, and participation. It is a result oriented philosophy enabling an employee to
measure progress toward a goal which the employee often has helped set. In the goal-setting phase of
MBO, a superior and subordinate discuss job performance problems and a goal is agreed upon. Along
with mutual goal-setting, a major component of MBO is the performance review session Among the
superior and subordinate, which takes place regularly to evaluate progress towards specified goals
7. Self-Appraisal Method:
Self appraisal is an important part of the Performance appraisal process where the employee themselves
gives the feedback or their views and points regarding his performance. Usually this is done with the
help of a self appraisal form where the employee rates themselves on various parameters, tells about
their training needs, if any, talks about their accomplishments, strengths, weaknesses, problems faced etc

8.360 Degree Appraisal:
360 Degree Appraisal is a type of employee performance appraisal in which subordinates, colleagues,
co-workers, and managers all anonymously rate the employee. This information is incorporated into that
person’s performance review.
9.180 Degree Appraisal:
180 Degree Appraisal method is similar to the one of 360 Degree. The different is that an evaluated
person is assessed only by the first-line supervisor and himself.

PERFORMANCE APPRAISAL BIASES
Managers commit mistakes while evaluating employees and their performance. Biases and judgment
errors of various kinds may spoil the performance appraisal process. Bias here refers to inaccurate
distortion of a measurement. These are:
1. First Impression (primacy effect): Raters form an overall impression about the rate on the basis
of some particular characteristics of the rate identified by them. The identified qualities and
features may not provide adequate base for appraisal.
2. Halo Effect: The individual’s performance is completely appraised on the basis of a perceived
positive quality, feature or trait. In other words this is the tendency to rate a man uniformly high
or low in other traits if he is extra-ordinarily high or low in one particular trait. If a worker has
few absences, his supervisor might give him a high rating in all other areas of work.
3. Horn Effect: The individual’s performance is completely appraised on the basis of a negative
quality or feature perceived. This results in an overall lower rating than may be warranted. “He is
not formally dressed up in the office. He may be casual at work too!”.
4. Excessive Stiffness or Lenience: Depending upon the raters own standards, values and physical
and mental makeup at the time of appraisal, rates may be rated very strictly or leniently. Some of
the managers are likely to take the line of least resistance and rate people high, whereas others,
by nature, believe in the tyranny of exact assessment, considering more particularly the
drawbacks of the individual and thus making the assessment excessively severe. The leniency
error can render a system ineffective. If everyone is to be rated high, the system has not done
anything to differentiate among the employees.
5. Central Tendency: Appraisers rate all employees as average performers. That is, it is an attitude
to rate people as neither high nor low and follow the middle path. For example, a professor, with
a view to play it safe, might give a class grade near the equal to B, regardless of the differences
in individual performances.
6. Personal Biases: The way a supervisor feels about each of the individuals working under him -
whether he likes or dislikes them - as a tremendous effect on the rating of their performances.
Personal Bias can stem from various sources as a result of information obtained from colleagues,
considerations of faith and thinking, social and family background and so on.
7. Spillover Effect: The present performance is evaluated much on the basis of past performance.
“The person who was a good performer in distant past is assured to be okay at present also”.
8. Recency Effect: Rating is influenced by the most recent behavior ignoring the commonly
demonstrated behaviors during the entire appraisal period.
Therefore while appraising performances, all the above biases should be avoid.

PERFORMANCE APPRAISAL SYSTEM IN ONGC LTD MEHSANA:
Performance Management System (PMS) Performance planning and assessment is of utmost importance
to any human resource development system. Performance Management System (PMS) is the process of
maintaining or improving employee job performance through the use of performance assessment tools,
coaching and counseling. Individual contribution drives business results that accomplish the goals of the
organization. PMS provides opportunity for the employee and the performance manager to discuss
development goals and jointly create a plan for achieving those goals. A Performance assessment system
is a vital element of PMS. It is a strategic tool towards achieving the objective of the organization and
forms the basis for employee’s development and progression. Performance Appraisal is a process of
assessing and summarizing the work performance and potential for development of an employee within
the framework of organizational needs.
OBJECTIVES
The objectives of the Performance Appraisal System are:
 To assess the current level of job performance.
 Assess training and development needs.
 Identify potential for undertaking higher responsibility.
 Develop a system of performance-based rewards
 Counsel and address employees on areas of improvement.
 Explicit time period.
EVALUATION
The Performance Appraisal System seeks to evaluate:
 Quantification of work plan and performance.
 Potential assessment for career growth and promotions
 Placement, Strategic assignments / Board level selection / Lateral shifting in respect of senior
officers and other HR initiatives
 Deputation

PERFORMANCE APPRAISAL REPORT (PAR)
Performance appraisal rules report is an index of an employee/executive’s work performance over a
given period of time. It is crucial for his/her Career Growth as it indicates the Strengths, Weakness (if
Any), Training needs, Nature of job being performed, problems faced in work situation. It is not only
crucial for career progression but also essential for grant Performance Related Pay (PRP). The data
stored centrally can be utilized by management to implement Promotion decision and release of
monetary benefit associated with PRP.
E-PAR PROCESS
Earlier, in ONGC Ltd., Mehsana physical format were being used for performance appraisal. The
experience of filling performance appraisal in physical format revealed that there was inordinate delay in
recording the appraisal; it was very difficult to trace PAR movement. This also resulted in low priority
accorded to record performance appraisal. The non-availability of PAR had directed impact on many
HR processes like Promotions, Placement, Training, Awards etc.
E-PAR system was implemented in ONGC Ltd., since 2008. The basic purpose of implementing E-
PAR system was to-
 Have a transparent, multidimensional evaluation system in alignment with industry practices
 Introduce performance contracting and objective evaluation
 Timely completion
 Supplement efforts to enable speed up HR processes like Promotions, Special Assignments,

Deputation Out, Rewards and Incentives etc. Through system
SALIENT FEATURES
 Greater transparency by way of joint appraisal system
 Uniform application across the company and standardize performance criterion, minimize
subjectivity
 System driven control and monitoring mechanism.
 Adherence to time schedules
 Enhanced Data Security and Confidentiality
 Availability of online information
Linkage to HR processes like promotions, awards, Performance based Rewards/Incentives e

PAR ASSESSMENT PERIOD
PAR Assessment period is of one year starting from April 1st to March 31st. However any PAR for a
period greater than 08 months may be treated as complete PAR. EPAR is generated for short period
also.
PAR CALENDAR:
E-PAR Activity Period
1 Reporting Chain from Controlling Officers Maintenance of ID No. based Mar. 16 – Mar. 31
reporting table and Generation of e-PAR by PAR officers
2 Reporting Chain from Controlling Officers Maintenance of ID No. based Apr. 01 – May 15
3 Reporting Chain from Controlling Officers Maintenance of ID No. based Oct. 01 – Oct. 31
4 Final Assessment of Previous year by Appraise Apr. 01 – May 15
5 Final Assessment of Previous year by Appraiser Apr. 16 – May 31
6 Assessment of Previous year by Reviewing Officer May 01 – Jun. 15
7 Co-Review of Previous year May 16 – Jun. 30
8 Moderation & Acceptance of Previous year at Work centre Jun. 16 – Jul. 31
9 Acceptance of Previous year by Director/CMD Jul. 01 – Aug. 15

 The e-PAR is configured in SAP landscape through WEBICE (Employee self-help portal).
 Access to Appraise and Reporting Officer thrice a year for E1- E5 Level and once a year for E6-
E9 and class II, III, IV.
I. Assessment Components: Performance and Potential
i. Performance Appraisal (P): Divided in 4 Key Result Area (KRAs):
 KRA 1: Quantitative and Timeliness – has option of 5 Key

Performance Indicators (KPIs).
 KRA 2: System Improvement
 KRA 3: HSE/Office Management and
 KRA 4: Qualitative Aspects
ii. Potential Appraisal (Q): Attributes divided into 10 parameters
II. Mid-term review: The system facilitates Mid-term Review done during job rotation,
transfer and change of assignments.
III. Final Appraisal Report: The final assessment would be done at the end of assessment
year. Weight-age for Performance and Potential varies with level of executives.
Stage – I (Initial Report – INR) In this stage the PAR chain is obtained by the PAR officers
from Head of different departments for the executives working in that department. The PAR
officer generates PAR in the system in the month of March for next assessment year and
place reporting chain for each executive as received from concerned departments. The PAR
is available to individual in ‘WEBICE’ on 1st April, i.e. on the first day of assessment year
for writing KPIs. The executives write KPIs in consultation with the Reporting Officer. The
Reporting Officer has to accept these KPIs, which are targets for the year. The executives
may take a print out of these KPIs. Stage
Stage - II (Mid Term Review – MTR) The PAR is available to executives again in the month
of October for Mid Term Review. During this process an executive may change the KPIs set
in the initial reporting or can change weightages given against the KPIs. The KPIs/
weightages set during the MTR are final targets and based on these targets executive is
assessed at the end of the year.
Stage – III (Final Assessment Report – PAR) In the initial evaluation, individual writes self-
appraisal based on KPIs/ targets fixed in INR/MTR. The assessment is done by Reporting/
Reviewing/ Moderating/ Accepting authorities as per PAR chain.

As on date, 6 different formats of e-PAR applicable to different classes of employees are in
circulation.
 For Class- II, III and IV level employees will have only one stage FAR – Final
Appraisal Review. This means there is no KPI setting for these categories and as such
the PAR window for them will open only during FAR. During FAR, the E0
level/Class II employees are required to fill their self-appraisal. Class – III and IV
will not have to fill anything online. Their PAR processing will start from controlling
officer (Appraiser).
 For E1 to E6 executives, the process has three stages Initial KPI setting, Mid Term
Review and Final Appraisal. E1-E6 process where process starts at the beginning of
the assessment year with setting of KPI.
 For E7 and above also have only one stage FAR – Final Appraisal Review.
 Final scores are conveyed to the employees including the marks given at Reporting/
Reviewing/ Accepting level.
PAR Rating
PAR Marks equivalent grades
Grades Marks
A+ 95 and Above
A 85 to < 95
A- 75 to < 85
B+ 65 to < 75
B 55 to < 65
C 45 to < 55
D <45
Justification to be given by the Reporting/Reviewing officer while giving A+ grade. Simultaneously,

reasons should be given by the Reporting/ Reviewing officer while giving poor grades (i.e. C and D).

REWARD
Promotions based on Performance. For promotion
Group – 1: E7 to E8 and E8 to E9 levels
 PAR has got maximum weightage i.e. 50 marks (PARs of preceding 5 yrs. are taken into account
and prorated to 50 marks)
Group – 2 : E6 to E7 level
Group – 3 : E4 to E5 and E5 to E6 level

CHAPTER - II
LITERATURE
REVIEW

LITERATURE REVIEW
Study by Peter Butali , David Njoroge(2016).Effect of Performance Appraisal on Organizational

Performance: The purpose of this study was to find out the impact of performance appraisal on
organizational performance and to find out the moderating effect of organizational commitment on the
relationship Among performance appraisal and organizational performance. This study was carried out
in three companies listed in the stock exchange. The study adopted descriptive survey design. The study
population comprised 5866 employees in the three companies. It was found that performance appraisal
had a significant effect on organizational performance. The study further showed that affective
commitment, continuance commitment and normative commitment moderated the relationship Among
performance appraisal and organizational performance.
Nancy Wairimu Mwema, and Dr. Hazel Gachoka Gachunga(2014) studied that the effects of
performance appraisal on employee productivity The main objective of this study was to establish
the effects of performance appraisal on employee productivity in the World Health Organization
focusing on Kenya Country Office, Garissa sub office, Somalia and Sudan offices based in Kenya.
Descriptive design was adopted in this study. Regression analysis was done to establish the effects of
performance appraisal on employee productivity. From the findings, the study concluded that
organizations should appraise their employees often through utilized targets, accomplishments,
organization goals, time management and efficiency for performance measure purposes as it would lead
to increased in employee’s productivity.
A Study on Performance Appraisal System at Wipro Infrastructure Engineering Pvt Ltd(2013): In

this study the operative function in the human resource department are analyzed with the contribution of
employees and their opinion about the function performed by the employees and their opinion about the
function performed by the HR Department in Wipro Infrastructure Engineering Pvt Ltd, Chennai. The
employees in the organization are directly interviewed and related data’s where collected through the
questionnaire. The data’s are analyzed through the percentage analysis and chi-square method. From
these inference were drawn, based on the inference it is found that most of the respondents fells that the
performance appraisal system done by the organization is comfortable and satisfactory.
A Study On Effects Of Performance Evaluation On Employees’ Efficiency And Productivity

(2014): The role and importance of performance evaluation is of employees’ efficiency and productivity
requirements. This research is aimed at studying the correlation Among performance evaluation and
employees’ efficiency and productivity in Gas Compressor Stations of Gachsaran Oil and Gas
Production Company. The statistical population includes 200 employees of this company. According to
Krejcie and Morgan’s table, 132 were selected as the sample and to collect the required data, Moghimi
and Ramezani’s (2011) performance assessment scale and Hajizadeh’s (2005) efficiency questionnaire
with reliability of 0.75 and 0.86 were employed.
Sharmistha Bhattacharjee and Santoshi Sengupta (2011) studied that employees are the most
valuable and dynamic assets of an organization. For achieving the strategic objective of sustained and

speedy growth, managing human resource has been featured as a vital requirement in all organizations.
It is a challenge to monitor the entire cycle of defining the competence requirement of the business,
accessing existing competence in the organization and bridging the gap Among the two. HR practices
are crucial for any organization. Every phase from recruitment to exit interview is under the HR
department. It is a challenge to monitor the entire cycle of defining the competence requirement of the
business, accessing existing competence in the organization and bridging the gap Among the two. In a
manufacturing industry, with every technical advancement business opportunities can show up. These
opportunities can be converted into business success only with performance alignment and competence
management.
Muhammad Faseeh ullah khan studied that Role of Performance Appraisal System on Employees
Motivation (2013): In many organizations, reward decisions depend on subjective performance
evaluations. However, evaluating an employee's performance is often difficult. In this paper, we develop
a model in which the employee is uncertain about his own performance and about the manager's ability
to assess him. The manager gives an employee a performance appraisal with a view of affecting the
employee's self perception, and the employee's perception of the manager's ability to assess
performance. We examine how performance appraisals affect the employee's future performance. The
predictions of our model are consistent with various empirical findings. These comprise (i) the
observation that managers tend to give positive appraisals, (ii) the finding that on average positive
appraisals motivate more than negative appraisals, and (iii) the observation that the effects of appraisals
depend on the employee's perception of the manager's ability to assess performance accurately.
An Assessment Of 360 Degree Performance Appraisal System (2018): The 360 Degree performance
appraisal is most commonly used to evaluate performance level of the employees. This method is very
reliable because the evaluation is done by different members working in an organization. This analysis
helps to find a solution to the problem that arises. An appraisal can be made by top management people,
superior, subordinate, peers, and customers. It is a full circle system of obtaining information from
internal as well as external sources of an organization. This feedback will focus on developmental
efforts of an individual and group. The satisfaction level of employees and retention level of employees
who undergo this feedback assessment process is the determinant factor of outcome.
A Study of Performance Appraisal System at IBM, Bangalore (2017): In this study, the operative
function in the human resource department is analyzed with respect to performance evaluation system of
the company. Performance appraisal system is considered as a significant tool in all organizations for
achieving goals effectively and efficiently. The study recommends the need to ensure fairness so that it
does not demotivate an employee or have a negative impact on goal accomplishment. The findings
revealed that the company has a very well designed Performance appraisal system, which involves
feedback as well as a reward system and the employees, are satisfied with the existing Performance
appraisal system. But, more efforts are to be made to make the approach more effective to ensure
increased productivity and high morale among the employees, which would lead to further growth of the
company in all respects.

Lamesa Bulto, Lamesa Bulto Study That Effect Of Performance Appraisal System On Employee
Motivation(2017) in This study aims to determine the relationship Among performance appraisal
system and motivation and investigates the extent to which performance appraisal practice impacts
employees' motivation. Data was collected through self administered questionnaire distributed to a
sample of 200 employees of Moha Soft Drinks Industry S.C., Ethiopia. Stratified simple random
sampling technique has been employed to select the respondents. Statistical analysis such as descriptive,
Pearson product moment correlation coefficient and simple regression analysis were employed to
analyze the data. The findings indicate that there is positive and significant relationship Among PAS and
employee motivation. On the basis of the findings, appropriate recommendations along with
implications for further research have been forwarded.

LITERATURE GAP:
Performance appraisal is a method of evaluating the behavior of employees in the work spot, normally
including both quantitative and qualitative aspects of job performance. It is a systematic and objective
way of evaluating both work-related behavior and potential of employees. It is a process that involves
determining and communicating to an employee how the job is done and ideally establishing a plant of
improvement. There are numbers of researches have been done on performance appraisal. In various
areas in different organization. But there is no research done in specifically ONGC-Mehsana KDM-
Bhavan on performance appraisal .I found that it is require to do research on performance appraisal so I
am conducting the research.

CHAPTER - III
RESEARCH
METHODOLOGY

RESEARCH METHODOLOGY:
RESEARCH:
The research design of this project is Descriptive. Though each research study has its own specific
purpose but the research design of this project on ONGC is Descriptive in nature as the objective is the
development of the hypothesis rather than their testing. I am studying on Performance appraisal system
in ONGC So taking comparative statement, I am going to analyzed of Performance appraisal system
followed in ONGC.
RESERCH TITLE:
 To study the Performance Appraisal System undertaken by ONGC Ltd., Mehsana
RESERCH OBJECTIVE:
1) To study the techniques of Performance Appraisal followed in ONGC Ltd., Mehsana.
2) To study the perception towards stratification level of ONGC employee
3) To study the employee awareness Towards performance management system
RESEARCH METHODOLOGY: In order to accomplish the objectives of the study, it is essential to

articulate in the manner in which it is to be conducted, i.e., the research process is to be carried out in a
certain framework. The research methodology, which follows, is the backbone of the study.
RESEARCH DESIGN:
The research design of this study considering its objectives, scope and coverage was Exploratory as well
as Descriptive in nature. The primary assumptions:
 Determining Data Collection Design
 Determining Data Methods
 Determining Data Sources
 Determining Primary Data Collection Methods
 Developing Questionnaires
 Determining Sampling Plan
SAMPLING PLAN:
Sample Size = 100 Employees
Sample Area = KDM BHAVAN, Mehsana
Duration = 6 weeks (40 days).
DATA COLLECTION:
Data Sources:
Secondary data:

(i) Company’s website Company’s
(ii) HR Manual Company’s circulars
(iii) Internet search
(iv) Library
Primary data:
Structured Questionnaire
Research instrument: The main research instrument used was a questionnaire consisting of 20 questions
and the open-ended questions. It also facilitated in face-to-face to interaction with the respondents.
Following points were kept in mind while designing the questionnaire:
 The respondents were assured that the information would be used for academic purpose and it
won’t be leaked out.
 The personal information of the employee was made optional.
 The observation and informal interaction is made when the employees were filling up the
survey.
ANALYTICAL TOOLS
The term analysis refers to the computation of certain measures along with searching for pattern of
relationship that exists among data group. Analysis is essential for a scientific study and for ensuring
that we have all relevant data for making contemplated comparison. Therefore, I have used Tabulation,
Graphs &charts in my project.
SCOPE
The research was conducted in ONGC Ltd., Mehsana. The research study was focused on performance
appraisal system in ONGC Ltd., Mehsana. It also measure and evaluate the effective performance on the
basis of employee’s overall awareness, expectations and satisfaction or dissatisfaction as an outcome of
offering various kinds of incentives and employee’s morale as offered by the performance appraisal
system of ONGC Ltd. Mehsana.
LIMITATIONS
 Reluctance of employees to give information and to fill up the questionnaire.
 The time factor in collecting the responses as in conducting the research study has limited factor.
 The sample size selected is limited.
 In lieu of the variation in the cooperation and involvement of selected employees at different
departments of ONGC, there may be inaccuracy of the responses given by them.

CHAPTER - IV
ANALYSIS
AND
INTERPRETATION

DATA ANALYSIS:
PRESENTATION OF DATA IN TABULAR FORM, PIE AND BAR CHART and

INTERPRETATION
Table No: 1
Gender of the respondents
Gender Frequency Percentage
Female 20 20
Male 80 80
Total 100 100
(Source: Survey)
Pie – chart:1
20
Female
Male
80
Interpretation-From the above table and chart it can be concluded that, Out of 100 respondents, 80
percent respondents are male and 20 percent are female.

Table No 2
Age of the respondents
Particular Frequency Percentage
20-30 Years 8 8
30-40 Years 81 81
40-50 Years 10 10
More than 50 1 1
Total 100 100
(Source: Survey)
Pie – chart:2
1
10 8
20-30 Years
30-40 Years
40-50 Years
More than 50
81
Interpretation--From the above table and chart it can be concluded that, Out of 100 respondents 8
percent respondents fall in the age group 20-30 years, 81 percent are in the age group of 30-40 and 10
percent are in the age group of 40-50 and 1 percent more than 50 years.

Table No 3
Education Of Respondent:
SSC 0 0
HSC 0 0
Graduate 41 41
Post Graduate 59 59
Total 100 100
(Source: Survey)
Pie – chart:3
00
41
SSC
59 HSC
Graduate
Post Graduate
Interpretation-From the above table and chart it can be concluded that, Out of 60 respondents the 41%
respondents are Graduate and 59 post respondents are Graduate.

Table No: 4
Since How Many Years Have You Been Working With This Organization?
Experience(Years) Frequency Percentage
0-5 28 28
5-10 12 12
10-15 27 27
More Than 15 33 33
Total 100 100
(Source: Survey)
Pie – chart :4
33 28
0-5 Years
5-10 Years
12 10-15 Years
More than 15
27
Interpretation-From the above table and chart it can be concluded that, Out of 100 respondents,
33percent respondents have an experience of more than 15 years; 27 percent have an experience of 10 –
15 years; 12 percent have an experience of 5 – 10 years; whereas 28 percent have an experience of less
than 5 years.

Table No: 5
Do You Think Performance Management System Is Clearly Defined In The Organization?
Yes 72 72
No 28 28
Total 100 100
(Source: Survey)
Pie – chart: 5
28
Yes
72 No
Interpretation: From the above table and chart it can be concluded that, Out of 100 respondents, 72
percent respondents are said that performance management system are clearly defined in the
organization and 28 percent respondent are not Agree.

Table No:6
Which Method Of Performance Appraisal Is Used In Your Organization?
Sr. No. Performance Appraisal Methods Frequency Percentage
1 Ranking method 0 0
2 Self appraisal method 100 100
3 360 Degree Appraisal 0 0
4 Graphic Rating Scales 0 0
5 Management By Objective(MBO) 0 0
6 180 Degree Appraisal 0 0
(Source: Survey)
Pie – chart:6
Ranking
Self appraisal
360 Degree Appraisal
Graphic Rating Scales
Management By Objective(MBO)
180 Degree Appraisal
percent respondents said that Self Appraisal is the method that is used for performance review.

Table No: 7
How Performance Appraisal Should Be Carried Out?
Time Period Frequency Percentage
Monthly 0 0
Quarterly 65 65
Half – Yearly 0 0
Annually 35 35
Total 100 100
(Source: Survey)
Pie – chart : 7
35
Monthly
Quarterly
65
Half – Yearly
Annually
percent respondents said Performance Appraisal should be carried out Quarterly; 35 percent said That
Performance Appraisal should be carried out Annually.

Table No: 8
Are You Satisfied With The Existing Performance Management System?
YES 89 89
NO 11 11
Total 100 100
(Source: Survey)
Pie – chart: 8
11
YES
NO
89
percent respondents said they are satisfied with the existing performance management system and 11
percent respondent are not satisfied.

Table No: 9
Do You Receive Any Increment In Your Salary After Performance Appraisal?
Particular Frequency TOTAL
YES 80 80
NO 20 20
Total 100 100
(Source: Survey)
Pie – chart: 9
20
YES
NO
80
Interpretation- From the above table and chart it can be concluded that, Out of 100 respondents, 80
percent respondents said they receive the increment in salary after performance appraisal and 20 percent
respondent did not receive any increment.

Table No: 10
Do You Want To Change The Performance Appraisal System Followed In ONGC?
YES 11 11
NO 89 89
Total 100 100
(Source: Survey)
Pie – chart : 10
11
YES
NO
89
percent respondents said they wanted to the performance appraisal system followed in ONGC; whereas
89 percent said they were happy with the current the performance appraisal system and did not wanted it
to be changed.

CHAP- V
INFERENTIAL
STATISTICS

RELIABILITY ANALYSIS:
Cronbach’ alpha No of item
0.868 12
Interpretation: Cronbach’s alpha is used to measure the reliability of the data. Data having value more
than 0.60 is considered as reliable. When we consider all the factor the reliability is 0.886 which is more
than the standard measure. That means data are reliable

MEANS SCORE:
No Mean Output Interpretation
1 All The Factor Facilitating And 2.21 Agree The Respondent are agree that all
Hindering Performance Are Taken Into the factor are consider while
Consideration While Appraising The appraising the performance.
Performance.
2 Performance Evaluation Are Mutually 2.09 Agree The Respondent are agree that
Decided Goals performance evaluation are mutually
decided goals.
3 Performance Management System Helps 2.11 Agree The Respondent are agree that PMS
People Set And Achieve Meaningful helps to people set and achieve
Goals. meaningful goals.
4 You Are Satisfied With The Weightages 2.27 Agree The Respondent are agree that
Given Against Each Activity That You satisfied weightage given each
Are Supposed To Perform In The activity by PMS.
Specified Period By PMS
5 Does Performance Of Employee 2.22 Agree The Respondent are agree that PMS
Improve Due To Current Performance improve employee performance.
Management System.
6 Promotions Are Strictly Based On 2.40 Agree The Respondent are agree that
Performance Management System Promotions Are Strictly Based On
Performance Management System
7 Your Leadership And Interpersonal 2.40 Agree The Respondent are agree that
Skills Are Developed Due To Leadership And Interpersonal Skills
Performance Management System. Are Developed Through
Performance Management System
8 Your Job Description Clearly Defines 2.07 Agree The Respondent are agree that Job
KRA’s On Which Your Performance Is Description Clearly Defines KRA’s
Rated
9 Performance Appraisal Helps To 2.06 Agree The Respondent are agree that
Provide An Atmosphere Where All Are Performance Appraisal Helps To
Encouraged To Share One Another Provide An Atmosphere Where All
Are Encouraged To Share One

Burden Another Burden.
10 Performance Appraisal Give 2.20 Agree The Respondent are agree that
Constructive Criticism In A Friendly Performance Appraisal Give
And Positive Manner Constructive Criticism In A Friendly
And Positive Manner
11 The PMS Implemented In Your 2.02 Agree The Respondent are agree that The
Organization Create A Participative PMS Create A Participative
Environment Environment
12 Performance Appraisal Improve 2.18 Agree The Respondent are agree that
Motivation And Job Satisfaction Performance Appraisal Improve
Motivation And Job Satisfaction

CHI SQUARE TEST:
No Hypothesis Significance Result
value
1 H0: There is no Association Among the gender and satisfaction of 0.873 Fail to
employee towards PMS rejected
Interpretation: Here the significance value is 0.455 which is more

than 0.05 so fail to reject null hypothesis it means that there is no
association Among gender and satisfaction of employee towards PMS.
2 H0: There is no Association Among the gender and salary increment 0.012 Rejected
after PA.
Interpretation: Here the significance value 0.012 which is less than

0.05 so, null hypothesis is rejected it means that there is association
Among gender and salary increment after PA.

T TEST:
No Hypothesis Significance Result

value
1 H0: There is no difference in all the factors are consideration while 0.317 Fail to
appraising the performance Among male and female. rejected
Interpretation: Here p value is 0.05 that is 0.317.so null hypothesis

is Fail to rejected. it means that there is no difference in all the
factors are consideration while appraising the performance Among
male and female.
2s H0: There is no difference in Performance Evaluation Are Mutually 0.02 Rejected

Decided Goals Among male and female.

is rejected. It means that There is difference in Performance
Evaluation Are Mutually Decided Goals Among male and female.
3 H0: There is no difference in Performance Management System 0.125 Fail to

Helps People Set And Achieve Meaningful Goals Among male and rejected
female.

is Fail to rejected .it means that There is no difference in
Performance Management System Helps People Set And Achieve
Meaningful Goals Among male and female.
4 H0: There is no difference in Weightages Given Against Each 0.441 Fail to

Activity By PMS Among male and female. rejected

Fail to rejected is.it means that There is no difference in Weightages
Given Against Each Activity By PMS Among male and female.

ONE WAY ANOVA:
No Hypothesis Significant Result

value
1 H0: There is no significant difference Between education and 0.890 Fail to
Perception Towards factor consideration. rejected
Interpretation: Here p value is 0.05 that is 0.890.so null hypothesis is

Fail to rejected. It means that There is no significant difference
Between education and Perception Towards factor consideration.
2 H0: There is no significant difference in statement “Performance 0.00 Rejected

Evaluation Are Mutually Decided Goals” Between educations of
respondent.
Interpretation: Here p value is 0.05 that is 0.00 .so null hypothesis is

rejected .it means that There is significant difference in statement
“Performance Evaluation Are Mutually Decided Goals” Between
educations of respondent.

Management System Helps People Set And Achieve Meaningful
Goals” Between educations of respondent.

“Performance Management System Helps People Set And Achieve
Meaningful Goals” Between educations of respondent.
4 H0: There is no significant difference in statement “You Are Satisfied 0.330 Fail to
With The Weightages Given Against Each Activity That You Are rejected
Supposed To Perform In The Specified Period By PMS.” Between
education of respondent.

Fail to rejected. it means that There is no significant difference in
statement “You Are Satisfied With The Weightages Given Against
Each Activity That You Are Supposed To Perform In The Specified

Period By PMS” Between education of respondent.
5 H0: There is no significant difference in statement “Does Performance 0.208 Fail to

Of Employee Improve Due To Current Performance Management rejected
System.” Between education of respondent.

Fail to rejected .it means that There is no significant difference in
statement “Does Performance Of Employee Improve Due To Current
Performance Management System.” Between education of respondent.
6 H0: There is no significant difference in statement “Performance 0.00

Appraisal Give Constructive Criticism In A Friendly And Positive Rejected
Manner.” Between education of respondent.
Interpretation: Here p value is 0.05 that is 0.00 .so null hypothesis is

“Performance Appraisal Give Constructive Criticism In A Friendly
And Positive Manner.” Between education of respondent.” Among

Appraisal Improve Motivation And Job Satisfaction.” Between

“Performance Appraisal Improve Motivation And Job Satisfaction.”
Between education of respondent.
8 H0: There is no significant difference Between experience and 0.483 Fail to

Perception Towards factor consideration. rejected

Fail to rejected .it means that There is no significant difference
Between experience and Perception Towards factor consideration.
9 H0: There is no significant difference in statement “Performance 0.473 Fail to

Evaluation Are Mutually Decided Goals” Between experiences of rejected
respondent.

Fail to rejected .it means that There is no significant difference in
statement “Performance Evaluation Are Mutually Decided Goals”
Between experience of respondent.
10 H0: There is no significant difference in statement “The PMS 0.049 Rejected

Implemented In Your Organization Create A Participative
Environment” Between experience of respondent.

Rejected .it means that There is significant difference in statement
“The PMS Implemented In Your Organization Create A Participative
Environment” Between experience of respondent.

Appraisal Improve Motivation And Job Satisfaction.” Between
experience of respondent.

rejected. it means that There is significant difference in statement
“Performance Appraisal Improve Motivation And Job Satisfaction.”
Between experience of respondent.

CHAP-VI
FINDINGS

Findings:
 The concept of performance appraisal system is used in many organization; people have accepted it and
understood the importance in the organization
 In the organization employee are aware about the performance appraisal system.
 Many Employees are satisfied with the current system and they don’t want to change this system.
 Many employees are agreeing that that all the factor are consideration while appraising the performance.
 Performance appraisal systems are Improve Motivation and Job Satisfaction of employee.
 The job and responsibility expected from the employees should be decided well in advance and that too
with the consensus with them.
 The time period for conducting the appraisal should be revised, so that the exercise becomes a continuous
phenomenon
 Training should be given to average or below average performer.

Chap-VII
CONCLUSION

Conclusion:
 The oil and gas sector is among the eight core industries in India and plays a major role in
influencing decision making for all the other important sections of the economy.
 As of April 1 2019, the oil refining capacity of India stood at 249.4 million tonnes, making it the
second largest refiner in Asia.
 ONGC is one of the largest Asia-based oil and gas exploration and production companies and
produces around 77% of India's crude oil(equivalent to around 30% of the country's total
demand) and around 81% of its natural gas.
 It is concluded from the survey that employees are aware about the performance management
system and many people are satisfied with the current system and don’t want to change the
current system. Creating a trust amongst employee about performance review techniques and
maintaining good relationship with employees for improving their performance and
accomplishing goals and objectives of the organization should be taken care of.

CHAPTER - VIII
BIBLIOGRAPHY

REFERNCES
SPSS Software
Bibliography:
1.Aswathappa K. (5 Edition),Human Resource Management

2. Naval Bajpai Business Research Methodology
3. ONGC Hr Manual
4. ONGC Circular 7.
5.ONGC Year Diary
Peter Butali , David Njoroge(2016).Effect Of Performance Appraisal On Organizational Performance.
Nancy Wairimu Mwema, And Dr. Hazel Gachoka Gachunga(2014) The Effects Of Performance
Appraisal On Employee Productivity
Dr.S.Jansirani, Mr. R.Hatrikrishnan(2013)A Study On Performance Appraisal System At Wipro

Infrastructure Engineering Pvt Ltd.
Mohammad Abassi1 and *Hassan Soltani2(2014)A Study On Effects Of Performance Evaluation On

Employees’ Efficiency And Productivity.
Sharmistha Bhattacharjee And Santoshi Sengupta (2011)
Muhammad Faseeh Ullah Khan Studied That Role Of Performance Appraisal System On Employees
Motivation(2013)
A Study Of Performance Appraisal System At Ibm, Bangalore(2017)
An Assessment Of 360 Degree Performance Appraisal System(2018)
Lamesa Bulto, Lamesa Bulto Study That Effect Of Performance Appraisal System On Employee
Motivation(2017)
Webliography:
www.ongcindia.com
www.google.com
https://www.ibef.org
www.mbaskool.com

CHAP-IX
ANNEXURES

ANNEXURES
A Study On Performance Appraisal System At ONGC Ltd.
Dear Respondent,
I Am Ray Anuradha Student Of S.V Institute Of Management College Kadi. As A Part Of My Study
Curriculum, I Am Undertaking Project On “A Study On Performance Appraisal System At ONGC
Ltd”. I Will Be Thankful To You Share Your Precious Time To Answer My Question.
Name:………………………………………………………………………………………
Email………………………………………………Designation…………………………………
Address…………………………………………………………….City……………………….......
Gender…………………… Contact No…………………………………………………………..

Education 10TH 12th Graduation Post Graduation
Age 20-30 Years 30-40 Years 40-50 Years More than 50 Years
Section A:
Q1:Name Of The Company/Organization(Optional)
………………………………………………………………………………………………..
Q2:Since How Many Years Have You Been Working With This Organization?
(a) 0-5 Years (c) 10-15 Years
(b) 5-10 Years (d) More Than 15 Years
Q3:Do You Think Performance Management System Is Clearly Defined In The Organization?
(a) Yes (b) No
Q4: Which Method Of Performance Appraisal Is Used In Your Organization?

(a) Ranking Method (c) 360 Degree Appraisal
(b) Self Appraisal Method (d) Graphic Rating Scales
(e) Management By Objective(MBO) (f)180 Degree Appraisal
(g)Other…………………………………………………………………………………
Q5: How Performance Appraisal Should Be Carried Out?
(a) Monthly (c) Quarterly
(b) Half-Yearly (d)Annually
Section B: To Identify The Factors Associated With Performance Appraisal instruction: Using The
Scale Below Tick (√) To Indicate Your Response To The Questions;
1-Strongly Agree 2-Agree 3-Neutral 4-Disagree 5- Strongly Disagree
1 2 3 4 5
1: All The Factor Facilitating And Hindering Performance Are Taken

Into Consideration While Apprasing The Performance.
2:Performance Evaluation Are Mutually Decided Goals.
3: Performance Management System Helps People Set And Achieve

Meaningful Goals.
4:You Are Satisfied With The Weightages Given Against Each

Activity That You Are Supposed To Perform In The Specified Period
By PMS.
5:Does Performance Of Employee Improve Due To Current
Performance Management System.
6:Promotions Are Strictly Based On Performance Management
System.
7:Your Leaderships And Interpersonal Skills Are Developed Due To

Performance Management System.
8:Your Job Description Clearly Defines KRA’s On Which Your
Performance Is Rated.
9: Performance Appraisal Helps To Provide An Atmosphere Where All
Are Encouraged To Share One Another Burden.
10: Performance Appraisal Give Constructive Critisim In A Friendly
And Positive Manner.
11:The PMS Implemented In Your Organization Create A Participative
Environment.
12:Performance Appraisal Improve Motivation And Job Statisfaction.
Q6:Are You Satisfied With The Existing Performance Management System?

(a) Yes (b)No
Q7:Do You Receive Any Increment In Your Salary After Performance Appraisal?
(a) Yes (b) No
Q8: Do You Want To Change The Performance Appraisal System Followed In ONGC?
(a) Yes (b)No


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A

Summer Internship Project

“A Study On Performance Appraisal System at ONGC Ltd”

S.V Institute of Management, Kadi

Kadi Sarva Vishwavidhalaya, Gandhinagar

Under the guidance of

1 Ray Anuradha 542008

S.V Institute of Management, Kadi. Page 1

 Introduction Of oil and gas industry 10-12

 Introduction Of Company 13-24

 Introduction Of Performance Management System 25-30

 Performance Management System&PAR In ONGC 31-36

Chap2 Literature Review 37-40

Chap:3 Research Methodology 42-44

Chap:4 Analysis And Interpretation 45-55

Chap:5 Inferential Statistics 56-64

Chap:6 Finding 65-66

Chap:7 Conclusion 67-68

Chap:8 Bibliography 69-70

Chap:9 Annexure 71-73

S.V Institute of Management, Kadi. Page 2

Dr. Bhavin Pandya, Prof. Khusbhu shah

S. V. Institute of Management - Kadi Assistant Professor

S.V Institute of Management, Kadi. Page 3

Date: Ms. Ray Anuradha

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Major Industry Players

The major industry players in India’s O&NG sector currently are:

MARKET SHARE OF OIL AND GAS COMPANIES:

S.V Institute of Management, Kadi. Page 11

Company Financial Year 2017 (US$ billions)

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 1958 – Cambay, Gujarat

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 Dedicated to excellence by leveraging competitive advantages in R&D and technology with

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Reliance is one of ONGC's top competitors. Reliance is a Public

3: Bharat Petroleum: Bharat Petroleum is a top competitor of ONGC. Bharat

S.V Institute of Management, Kadi. Page 18

 Being a government organization slow bureaucratic decision can reduce efficiency.

 Increasing fuel/oil prices means higher margins for ONGC

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Employee HRD Medical Security ONGC

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Objectives of Performance Appraisal

1. To maintain records in order to determine compensation packages, wage structure, salaries

S.V Institute of Management, Kadi. Page 25

Objective of performance appraisal

Establish Job Expectation

Design An Appraisal Programme

Use Appraisal Data for appropriate Purposes