Professional Documents
Culture Documents
The Aditya Birla Group is India's first truly multinational corporation. Global in
vision rooted in Indian value, the group is driven by a performance ethic pegged
on value creation for its multiple stakeholder. A US $6 billion conglomerate, with
a market capitalization of US $5 billion, it is endorse by an extraordinary forced of
72,000 employees belonging to over 20 different nationalities.
A premium conglomerate, the Aditya Birla Group is a dominant player in all the
sectors in which it operates. Among these are viscose staple fiber, non-ferrous
metals, cement, viscose, filament yarn, branded apparel, carbon black, chemical,
fertilizer, sponge iron, insulator and financial services.
It is: -
The group has also made successful forays into the IT (information technology)
and BPO (business process outsourcing) sectors.
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BEYOND BUSINESS
INDUSTRIAL PORFOLIO
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Aditya Cement, it was established in March 1995, which is one of the latest
cement division of Grasim Industries Ltd. It is a record o Aditya Cement that they
produce 1 million tones per annum cement unit. This record is completed in 22
months from the beginning.
In Aditya Cement there are lot many modern equipments which are supplied by
the world major and renowned Krupp Polusius of Germany and quality control
systems by Gamma Matrix of United States Of America. This plant has already
certified by ISO-9002 and ISO-14001 Certificates. The plant has proximity to
limestone deposits and has an on- line Cross Belt Analyzer to ensure limestone
of consistent quality. Its 82% of power requirements are met through captive
source.
The specialty of Aditya Cement Plant is, it's a World Class Eco-Friendly Plant.
Aditya Cement has adopted the most modern and latest dry process
precalcination technology with sophisticated control instrument from
internationally renowned firm. The entire manufacturing process is made
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automatic, using highly sophisticated sate-of-the- arts technology, having on line
process computer with color VDU control panels.
Aditya Cement took the lead in the country for energy conservation by installing
High Pressure Roller Press for raw material and cement grinding and vertical
roller mills imported from the world. This plant has also believed in the
importance of conservation of environment. By this policy of awareness of
environment they installed high efficiency Electrostatic Precipitators, Bag House
and Bag filters to keep the environment free from pollution.
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ORGANIZATION STUCTURE
Aditya Cement is a Unit of Grasim Industries limited a flagship company of the
Aditya Birla Group rank among India's largest private sector companies, with a
turn over of Rs.5, 213.3 corers in 2003-2004.
BOARD OF DIRECTORS
BUSINESS HEADS
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IMPORTANCE OF PERFORMANCE APPRAISAL SYSTEM
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Communicated the standard
Performance Appraisal involves at least two parts- the appraiser who does the
appraisal and the appraisee whose performance being evaluated. Both are
expected to do certain things. The appraiser should prepare job description
clearly; help appraisee set his set his goals and targets; analyse results
objectively; offer coaching and guidance to appraisee whenever require an
reward good results.
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METHODS OF PERFORMANCE APPRAISAL
The methods of performance appraisal may be classified into three
categories, as shown in figure;
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PERFORMANCE APPRAISAL IN ADITYA CEMENT
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Role clarity is important point of objectives that how an appraisee know
about his role in organization.
It enables the appraisee plan and reviews his performance through a
participatory process.
Appraisal system establishes a linkage between performance and reward.
According to this objective it improve or he/ she is in very good
performance so that naturally he/she will get reward. And once get reward
than definitely he will try to improve his performance as best as possible.
Appraisal system establishes or facilitates a planned process of
management growth and development
It aims to establish an organizational environment where superior
performance permeates every aspect or the Aditya Birla Group
employee's professional life.
It creates a culture that empires and empower every individual to
contribute his/her best in building the business and the organization
through self-development and provide opportunities to recognize and
develop achievers.
Performance Appraisal also develops and optimizes Human Resources.
Performance Appraisal is biased on the belief that clarity of goals and
objective setting through a participatory process provides the foundation
for " Superior Performance".
It believes that every individual is capable of setting objectives and
assessing one own performance. It underlines introspection as a means of
growth.
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These Appraisals are done in the systematically, through a well defined and
developed appraisal form. In these appraisal forms, the Performance of an
appraisee is assessed based upon is task and achievement status mentioned by
the appraisee by his immediate superior (i.e. Appraiser) and subsequently it is
reviewed by his superior’s superior (i.e. Reviewer).
Basically three different types of appraisal forms are being used in the Aditya
Cement according to different grades of employee. The Appraiser who is
immediate supervisor of the person being appraised appraises all the apraisees.
The appraisal is done against various factors and the appraiser indicates
performance rating, which can be reviewed by the reviewer.
In order to review the focus of appraisee's time attention, seriousness and use of
resource with the organizational / business needs bi-annual reviews are
conduction to assess the performance of the managerial cadre imply. For the first
review of appraisee, the reviewer and an appraiser give attention to on the work
performance of the month of April to September. This process is completed on
the month of October. After that second review is take place in the March. This
review is done on the basis of goals, which are completed during the period of
October to March.
The most important part of review is a reviewer who is the immediate supervisor
of the appraiser further examines performance appraisal of all employees. The
reviewer carefully scrutinizes the Appraisal form. If felt necessary, the Reviewer
can revise the appraisal rating with the concurrent or involvement of the
appraiser. The reviewer should specially ask for written justifications by appraise
in the appraisal form that is called Task Status.
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APPRAISAL PROCESS IN ADITYA CEMENT
A DIAGRAMETIC VIEW
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APPRAISER PROCESS OF ADITYA CEMENT
COMMON APPRAISAL
In Aditya Cement it is an annual exercise and linked with unit or group objectives.
It is a concept of self-appraisal and review of performance. But this process have
different standard, rating scales and systems. Specialty of this process is that it is
fully confidential system with development orientation. MPDP have some
different names like- a performance plan, Performance review, Potential
assessment, and a development plan.
MPDP have some unique features. It has a concept of self-appraisal process and
participatory approach with supportive work culture. Main feature of this process
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is that it is a transparent system. In Aditya Cement a lot of attention is given on
performance planning and development because it is mid-course review with
corrective action.
This process is mid-course review and it also takes corrective action for
completing the goals, which was mentioned lastly. It facilitates the process of
development that are, executive involvement through self-appraisal and
introspection. This process has a different way of rating. They have 4 profiles that
are exceptional achiever, high achiever, consistent contributor and performer.
Appraisee, Appraiser and reviewer are responsible for the process because they
have to do discussion before going to fill the form of appraisal. Appriasee is the
executive and one whose performance is to be assessed over one entire cycle.
Appraiser is the manager, one under whom the Appraise has closely worked
during the appraisal cycle. The Reviewer who is the appraiser's superior does the
other part; he is one who has worked closely with the appraiser and oversees
and the department or the function where the appraisee works.
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The Managerial Performance & Development Plan is meant to be a development
tool in the Aditya Birla Group as whole. It aims to establish an organizational
environment where superior performance permeates every aspect of the Aditya
Birla Group's Managers' professional life. It seeks to create a culture that inspires
& empowers every individual to contribute his/her best in building the business
and the organization through self-development. It seeks to create an
environment, which provides opportunities to recognize and develop achievers. It
believes in the development and optimization of human resources. It is based on
the premise that people at all levels are capable of contributing to the overall
team performance.
Potential
assessment (B3) Personal &
career develop
Achievement -ment (B1)
profile reviewers'
comments (B2)
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THE APPRAISAL FORM - A GUIDE
The purpose of this section is to take you on guided tour of the appraisal form.
The first page of the form captures a brief picture of the Appraisee's personal
details such as name, designation, qualifications and work experience etc. Unit
HRD will be responsible to furnish this data in each appraisal form.
At the beginning of the year, the Appraiser shares the organizational and
functional goals to help the Appraisee prepare his list of KPAs for the year.
KPA's are derived from an Appraisee’s function such as Marketing, HRD,
Finance and so on. For a Marketing Manager, for example, the thrust
area could be the introduction of new products in one year and it could be
distribution in another.
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A2 First six months' objectives
(To be filled by Appraisee after discussion with his Appraiser)
The next step of the form involves listing down objectives based on the
KPA's. Objectives are specific quantifiable tasks/targets. They establish a
yardstick against which performance may be assessed at the end of the
review periods.
These objectives should be clear, brief, and measurable and time bound.
In the case of service functions, it may not be always easy to set
objectives in quantifiable terms but efforts must be made in this direction.
An element of challenge should be willingly built into them so that the
Appraisee stretches for his own good & organizational excellence. An
objective cannot be a routine activity of the Appraisee. It must be
something that adds a value to the business that did not exist earlier.
Let us look at the example of the marketing manager once again. If his
KPA is to introduce a new product, his objective to achieve this KPA could
involve the following:
Objectives are to be set for each KPA identified for the year. Total
number of objectives set for the whole year should not exceed 5-6. These
objectives need to be divided into two categories i.e. those which will be
started and completed within the first 6 months and those which will be
started after 1st July and will be completed by the end of December. There
may be some objectives, which may take more than six months to
achieve. In such cases, the objective should be listed both in sections A2
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and A3, clearly indicating what part of it would be completed in the first 6
months and which part in the second half of the year.
The column "agreed key objectives" on page 2 provides space for the
Appraisee to document objectives to be achieved in the first six months of
the appraisal period.
At the end of the first six-month period (i.e. June 30) a meeting between
the Appraiser and Appraisee will review the progress in achieving the
objectives.
Separate sub-columns have been provided for both the Appraisee &
Appraiser's qualitative assessment of achievement of objectives e.g. they
may comment on whether the objectives have been not achieved or
partially/totally achieved. If objectives have been partially or not at all
achieved, reasons must be assigned for it.
Objectives for the second six months may change due to certain
exceptional changes in assignment or focus; these changes may be
highlighted in the sub-column "agreed action plan".
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If the Appraisee has made any significant contribution over and above his
agreed objectives, it must be captured in the column provided on page 2.
Significant contributions may be identified in the following three areas:
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Any skills and/or expertise acquired or sharpened during the past year in
course of work or through training e.g. budgeting, media planning, lateral
thinking, interpersonal skills etc.
Areas where he wishes to further improve
His plans to achieve the improvements he desires
His career interests, immediate and short term (next 1-3 years) so that these
may be taken into consideration when planning future assignments for him.
And others in the Group. This will also aid more meaningful Human
Resource Planning.
B2 Achievement profile
(To be filled only by the Appraiser)
Its purpose is to provide an overall perspective of the Appraisee’s
contribution & performance. The achievement profile relates to the
present job performance & not to potential. This profile is identified by the
Appraiser and shared with the Appraisee.
The appraiser should use the following scale to arrive at the achievement
profile of the Appraisee:
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EA - Exceptional achiever - is one:
Whose performance is well in excess of the agreed objectives, with a very
high stretch under adverse/normal conditions
Who conserves & utilizes his resources optimally
Who demonstrates complete mastery of his job & continuously acquires and
applies new knowledge
Who demonstrates a high degree of initiative and the ability to work
independently with a high level of confidence
Normally uses creative approaches/solutions when confronted with difficult
business situations or problems.
Who motivates and inspires his team to contribute its best through mutual
trust and two-way communication.
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Occasionally comes up with creative approach to problems
Managerial Competencies
Functional knowledge
Leadership
Problem solving
Strategic Thinking.
Resource Allocation
Networking
Personal Attributes
Maturity
Creativity
Winning instinct
Initiative/Motivation
Interpersonal competence
While the appraisal is being done for Unit Heads, their appraisers' should focus
on the following three dimensions, in addition to the one/s the appraiser may
have identified relevant to the Appraisee.
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Overall business has a basic interest in and sensitivity to the business
Perspective environment. Possesses a strong drive to
entity new avenues and redefine the industrial sector.
B3
Potential assessment is a measure of the extent to which the
Appraisee possesses certain skills and competencies to take on
higher responsibilities. This helps to identify areas where the
Appraisee can contribute his/her best.
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The Appraiser would basically need to match the competencies and
personal attributes of the Appraisee with specific functional
requirements.
B4 Recommendations
(To be filled only by the Appraiser)
After having identified the Appraisee's potential, the Appraiser
would need to recommend the Appraisee for a promotion or
transfer or to take on additional responsibility in the same/any other
Unit.
After the Appraiser signs the appraisal form, the Appraiser forwards
it to his Superior (the reviewer) for his input. The reviewer shares
and documents his views about the entire appraisal and then
forwards it to the Unit head for his signature.
The Unit HRD will compile the data generated, after the
recommendations have been made by the Appraiser, Reviewer and
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the Unit Head so as to accordingly plan the implementation of the
recommendations so made.
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and Appraiser together, within a specified time frame, must be
documented.
Responsibilities
The Appraisee and his Appraiser will share the responsibility of preparing the
MPDP.
Takes the initiative to prepare the first draft of the P & DP and contribute to its
timely completion within 15 days from the receipt of the form from the
Appraiser.
Informs the Appraiser about his readiness to share & finalize his KPA's
Documents the mutually agreed KPA's and objectives in the appraisal form.
Retains the original appraisal form, gives a copy of pages 1,2 & 3 to the
Appraiser and Unit HRD for reference.
Evaluates his progress on the achievement of objectives at the end of six
months period and at the end of the year.
Forwards the appraisal form to the Appraiser twice during appraisal year (i.e.
for a joint progress review after six months & at the end of the year for the
final assessment.
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Gives as much importance to the planning of the work and aligning it to
organizational objectives, as to evaluating performance and giving feedback.
Gives the Appraisee insight into the organizational and departmental
objectives.
Records major achievements/contributions made by the Appraisee during the
year.
Ensures that a joint progress review after first six months period takes place.
Ensures that the feedback is constructive and actionable.
Makes note have and shares specific examples of behavior and incidents for
positive and negative feedback.
Ensures that the post appraisal discussion is a constructive dialogue between
himself and the Appraisee.
Shares the MPDP with the Appraisee & ensures its timely completion.
At the end of the year, after the final assessment by the Appraiser, he
forwards the form to the Reviewer (the Appraiser's Superior).
The Reviewer (Appraiser's Superior) - is one who has worked closely with the
appraiser and oversees the department or the function where the Appraise
works.
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The Unit Head
Ensures the timely distribution of the appraisal forms to the various functional
heads in the Unit.
Calibrates ratings across the different functions.
Acknowledges the appraisal evaluation by signing on each appraisal form
Sends all the completed appraisal forms to Unit HRD in time.
Unit HRD
Fills in the section on the executive's personal data e.g. name, designation,
years of experience etc. and sends the appraisal form to the all Unit heads.
Ensures the speedy and effective implementation of the MPDP e.g. obtains
feedback from time to time.
Ensures uniformity of approach and objectivity in decision making
Ensures that compensation revision reaches managers in time
Ensures that the appraisal forms reach back to Appraiser for the post
appraisal discussion
Corporate HRD
Familiarizes unit heads, functional heads and Unit HRD with the common
appraisal system and its components.
Ensures uniformity of approach and objectivity in decision making
Equips Unit HRD to implement the system in their units.
Elicits feedback from the units about the effectiveness of the system e.g.
through a survey
Fine-tunes and refines the system on basis of the feedback received from
time to time.
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There are some important process steps and responsibilities, which is done by
the particular person.
Senior executive
Overall business perspective: -
Has a basic interest in and sensitivity to
business environment. Process a strong drive to
identify new avenues and redefine the industrial sector.
Management of change: -
A facilitator who possesses the ability the anticipate,
respond and adapt to change in the business scenario to
be ahead of competition. Gains the acceptance of his
subordinate in the change process, involves them in the
implementation of the change.
Development orientation: -
The ability to identify and capitalist on his
subordinate strength. To create an environment
conductive for them to express themselves, learn and
support them to acquire new skills and higher level of
performance.
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PERFORMANCE APPRAISAL DEVELOPMENT
PALN(PADP)
Performance level Rating for PADP (Managerial Employees) and PADP (Non-
Managerial Employees) are same as mentioned for MPDP i.e. Exceptional
Achiever, High Achiever, Consistent Contributor, performer and non-performer.
Managerial competencies are specific to MPDP. With increasing competitive
pressures on business, productive of teams and individual performance is getting
under the spotlight. No progressive business or team likes to carry less than
consistently performing members as part of their team. In Aditya Cement, they
have been making continuous effort to improve their performance. Each business
must identify its top performer as well as poor performers. Poor / non-performer
are not only a drag on the business, but also impact team morale and efficiency
of High Performers.
PADP (managerial) and PADP (non-managerial) are the way by which Aditya
Cement can know who is the best and in what they want improvement. It
provides goals and work plan for the next year and these plans are determined
by the last achievements, this is the main and important feature. It is created only
because Appraiser wants to know that particularly which factor does the
employee affect and which factors are perfect. According to that they can easily
mention that what would be the score of a particular are of an individual
employee. These factors are coming under the Performance Assessment.
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Awareness of cost involvement and attempts to minimize them
Optimum use of resource and time in completion of task
2) TPM/ISO/EHS/SA-8000 Systems
b) Implementation of systems
Application of TPM/ISO/EHS/SA-8000 philosophies in work practice
Meeting of requirements of these systems with regard to quality of work,
safety, environment, documentation and etc.
Member ship of sub-committees.
Preparation of activity boards, work procedures/ work instructions
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c) Continuous monitoring and achievements
Constant monitoring to ensure compliance of all systems to
TPM/ISO/EHS/SA- 8000 requirement at all time
Continuous assessment of targets to measure their relevance and
efforts to revise them as and when required
Continuous effort to improve upon TPM/ISO/EHS/SA-8000 target and
goals
Contribution in preparation of application for various awards
Role as internal auditor and auditee
Attending circle meeting and monthly TPM communication Meetings
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Setting of goals and targets
Clear understanding of resources and time required and optimal
allocation thereof
Constant monitoring to ensure meeting the targets
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b) Training and development of subordinates
Awareness of subordinates' job requirement, strength,
weakness, interests and career plans
Identifying training and development needs of subordinates
based on the above and ensuring that they are met
Giving constant feedback to subordinates on their performance
and giving inputs to upgrade their performance and giving inputs
to upgrade their job related skills.
d) Development of successor
Identification of likely successor based on job requirement and
personal qualities and competence of subordinates
Identification of skill/attitude gaps related to grooming of the
identified successor
Holding of training session and providing counseling, job coaching,
OJT's and formal training to the successor to facilitate his/her
transition
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Sound grounding in fundamentals of functional area
Ability to translate/adapt theory into practice
Familiarity with work practices in functional area
Expertise in own field of specialization within functional area
Good overall knowledge of related field within functional area
Ability to appreciate linkage with other functional areas and
contribution of other area to the organization
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7) Conceptual and innovative skills
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b) Ability to work with superiors, peers and subordinates
Ability to establish rapport with people within and outside the
department
Respectful attitude towards superiors and friendly relations with
peers and subordinate
9) Communication
There after Appraisee got overall rating out of 200. The purpose of assigning
performance level ratings is to provide an overall perspective of an Appraisee’s
contribution, performance and behavior. It essentially reflects achievement
profile of the Appraisee and relates to present job performance and not to
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potential. This rating is given by the Appraiser and further examined by the
Reviewer. The post-review rating is to be shared by the Appraiser with
Appraisee.
The appraiser should use the following rating to depict the overall performance
level of the Appraisee:
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Whose performance is above agreed objectives/standards of expected
performance with
a marked consistency under adverse/normal conditions
Who conserves and utilizes his resources well
Who displays commendable grasp of his job
Who demonstrates a good degree of initiative and seeks guidance in difficult
situations
Often comes up with creative solutions to issues
Who is able to build a team and sustain its motivation and morale
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Who consistently fails to achieve targets/expected standards of performance.
Displays unwillingness to contribute
Who wastes organizational resources
Exhibits total ignorance of job knowledge
Carries negative attitude and closed mind set
On the next page of the Appraisal process the Appraiser should clearly specify
one or two areas for Performance Enhancement and suggest the ways through
which improvement can be achieved. It is necessary to inform to Appraisee about
the Performance Rating and Area of Improvement, with name, designation, and
department as well.
The last section of the process is especially for the Goals and Work Plans for the
upcoming year. This division is to be filled by the Appraisee in consultation with
Appraiser with his/ her name, designation and department also. In this section
the Key Objectives or Goals are fix on with the target Date for the first and
second analysis of the coming year. At the last Appraiser and Appraisee should
do signature on it.
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2.6.2. Performance Appraisal and Development Plan
(Non-Managerial Personnel)
I. Work Performance
A. Internal customer orientation
Awareness of internal and external users of output
Sensitivity to the needs of various user groups
Meeting their needs with respect to speed and quality of output
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C. Meeting targets / tasks
Completion of tasks within deadlines
C. Consistency
Uniformly accurate and timely completion of tasks
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Ability to put team goals in perspective and direct focus towards team
goals
Alignment with team rather than individual objectives
Active contribution to team work and encouraging inputs from all members
Ability to resolve team conflicts
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D. Waste control and safety consciousness
Awareness of safety and wastage issues in the department and
throughout the organization
Attempt to minimize wastage and ensure safety in all actions
Concern for departmental and organizational environment
Concern for safety needs of others
V. Initiative
A. Ability to bring new ideas to work place
Ability to generate new ideas
Ability to implement ideas in organizational context
Constant questioning of sub optimal systems and procedures
VI. Dependability
VII. Emotional identity with the job and the organization
Level of correlation between personal and organizational goals
Subordination of personal goals to those of the organization
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Commitment that goes beyond the fulfillment of professional
responsibilities
VIII. Discipline
A. Punctuality
Adherence to work timings
Cooperation with requests to complete urgent work beyond office hours
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4.1. CONCLUSION
From the study, the researcher concludes that in Aditya Cement performance
appraisal system is working at an expected pace. The topic Effectiveness of
performance appraisal system in Aditya cement is done by the survey method.
Successful implementation and institutionalization of Performance Appraisal
demands the real support and active participation of all concerned i.e. Appraisee,
Appraiser, Reviewer and Unit Head. They need to make wholehearted
contribution to make this system effective.
Thus, the policy and practice of performance appraisal at Aditya Birla is none or
less service the bank purpose of human resource development and so also the
organizational effectiveness.
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BIBLOGRAPHY
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Appendix-B
Name : Unit :
Designation : Location :
Grade : Department :
Qualification : Last Increment date :
Length of service :
Length of service in present position :
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Key Performance Areas ………………
A (Please list down ‘Key Performance Areas’ after discussion between Appraiser and
1 Appraisee)
11
11.
2.
3.
4.
5.
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A First Six Months' Objectives ...
2
Results Achieved
11 Agreed Key Objectives
1 Appraisee’s Assessment Appraisor’s Assessment
1
What factors have helped and/or hindered performance during the past six
months ?
Any significant contribution made by the Appraisee over and above his/her
objectives.
(Please refer to the booklet for egs & details)
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A
3 Second Six Months' Objectives...
11 Agreed Key Objectives Results Achieved
1 Appraisee’s Assessment Appraisor’s Assessment
1
What factors have helped and/or hindered performance during the past six
months ?
Any significant contribution made by the Appraisee over and above his/her
objectives.
(Please refer to the booklet for egs & details)
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Signature of Appraiser Signature of Appraisee
1. What has been your significant learning during the past year?
2. List down the skills and competencies that you have acquired or sharpened
during the past year?
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Achievement Profile
B2 (To be filled by the Appraiser only)
1
Exceptional High Consistent
Performer
Achiever Achiever Contributor
__________________ __________________
Signature of Appraiser Signature of Reviewer
Date : Date :
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Potential Assessment …
B3 (To be filled by the Appraiser only)
1
1. Are the manager’s abilities best used in his/her present job ?
Yes No
1a. If no, what job should he/she be assigned for best use of his/her current
abilities ?
(Please explain your recommendation)
Yes No
3a. If yes, please explain his/her long term potential and what abilities and
qualities indicate such potential ?
4. If the manager has long term potential (see above), what are the two
capacities or roles in which he/she should work in the next 3-5 years for
further developing such potential ?
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Recommendations …
B (To be filled by the Appraiser only)
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1. The manager may be promoted immediately as :
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Post Appraisal Discussion …
B5
1
Main points : (To be filled by the Appraiser only)
Development Plan : (To be filled after discussion between Appraiser & Appraisee)
___________________ __________________
Signature of Appraiser Signature of Appraisee
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