Performance Appraisal System PDF

BHARATH HEAVY ELECRICALS LIMITED
A STUDY OF
“PERFORMANCE APPRAISAL SYSTEM”
A Project report submitted in partial fulfillment
For the Award of the
“MASTERS OF HUMAN RESOURCE MANAGEMENT”
Submitted By
SUNITA KUMARI
(ROLL NO: 1302000856)
SIKKIM MANIPAL UNIVERSITY
(2012-2014)
Under the Guidance of
S.P.TIWARI (MBABR0017)
1
DECLARATION
I hereby declare that the project report “PERFORMANCE APPRAISAL

SYSTEM” is being submitted by me to the SET Academy, in partial fulfillment for the
award of the degree of “MASTER OF HUMAN RESOURCE MANAGEMENT.” This is
a bonafied worth carried out by me under the guidance and supervision of Mr. S.P.Tiwari,
Faculty, Sikkim Manipal University.
I also declare that this project work is the result of my own effort and that it has not been
submitted to any other University for the award of the degree or diploma earlier.
Place: Sasaram
Date: 29-06-2014
SUNITA KUMARI
2
CERTIFICATE
This is to certify that the project Report titled “PERFORMANCE APPRAISAL

SYSTEM” is an original work carried out by SUNITA KUMARI (Roll No 1302000856),
under my guidance and supervision, in partial fulfillment for the award of the degree of
Masters of Human Resource Management by Sikkim Manipal University, Manipal, during
the Academic year 2012-14. This report has not been submitted to any other University or
Institution for the award of any Degree/Diploma/Certificate.
Signature of Guide
(S.P.Tiwari)
3
Acknowledgement
Knowledge is power for a management student this power of Knowledge is un

attainable unless an element of practical observation and performance is not added the basic
stream of Management HUMAN RESOURCE calls not only for an exhaustive Knowledge
of basic Knowledge about the same.
I am grateful to Mr. S.P.Tiwari (Associate Professor), Sikkim Manipal University

,Manipal for his/her continuous guidance to accomplish this project work, successfully.
It is my pleasure to acknowledge and express my gratitude to all those who helped me

throughout in the successful completion of this project.
I am very thankful to Sri. P.C.Mohanty (HR), of BHARATH HEAVY

ELECTRICALS LIMITED ,HATIA for extending support throughout the project.
I am thankful to Sri Nava Jeevan(HR), of BHARATH HEAVY ELECTRICALS LIMITED

,HATIA for providing information regarding the project.
SUNITA KUMARI
1302000856
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CONTENTS
CONTENTS PAGE NUMBERS
1. Theoretical Framework 6-15

(a) Topic related Concepts
(b) Review of Literature
2. Organization Profile 16-39
(a) Industry Profile
(b) Company Profile
3. Present Study/Methodology 40-41
(a) Need/Significance of Study
(b) Objectives of Study
(c) Scope of Study
(d) Research Design
(e) Research Methodology
(f) Limitations Of the Study
4. Analysis of Study 42-59
5. Findings & Suggestions 60-61
6. List of Charts 62
7. List of Charts 63
8. Bibliography 64
9. Annexure 65-67
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PERFORMANCE APPRAISAL
INTRODUCTION:
A “Performance Appraisal” is a process of evaluating an employee’s performance on

jobs in terms of its requirements or we may call it a post-mortem of a subordinate
performance by his superior during a predetermined period of time, often the preceding year.
According to Hegel-“It is the process of evaluating the performance and qualification

of the employee’s in terms of the requirements of the job for which he is employed, for the
purpose of administration including placement, selection for promotion, providing financial
reward and other actions which requires differential treatment among the member of a groups
as distinguished from action all members equally.”
Performance Appraisal is the systematic evaluation of the individual with respect to

his/her performance on the job and his potential for development. Job Analysis sets out
requirement, which are translated into performance standards, which in turn form the basis
for performance appraisal.
MULTIPLE USES OF PERFORMANCE ASSESSMENT
GENERAL APPLICATIONS SPECIFIC PURPOSES
Developmental Uses: 1. Identification of individual Needs
2. Performance feedback
3. Fixing transfers and job Assignments
4. Identification of strength & Weakness.
Administrative uses: 1. Salaries
2. Promotion
3. Retention, Termination
4. Layoffs.
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Organizational Maintenance Objectives: 1.HR Planning
2. Organizational training needs.
3. Evaluation of Org. goal Achievement
4. Evaluation of H.R. systems
Documentation: 1.Helping meets legal Requirement
2. Useful for future research.
GENERAL VIEWS ABOUT PERFORMANCE APPRAISAL
 It is an important topic nowadays in every organization because it can play a

substantial role in influencing motivation and moral of the employee in every respect.
 It encourages employees to set up his own objectives for the next period following the
review of his past performance, in order to improve his performance on the job.
 Good performance appraisal systems may help the employees to overcome the
weakness and improve on his strength, contribute to the growth and development of
the self through helping himself in realistic goal setting, provide inputs to system of
rewards administration.
 According to the performance appraisal system, training may be arranged for those
employees who have lack of skill. The manager can identify those persons who
havelack of skills in particular fields and set up training to them. It is an effective
instrument for helping people to grow and develop people in an organizational setting.
 A Performance appraisal method developed through an objective study by the
participation of his employees and in consultation with the expert can serve the
various purposes
 It helps an employee to overcome his weakness and to strengthen strong points
generates feedback for employees and their superiors, helps in setting realistic goals
for employees provide inputs for the change oversee and promotion, identify the
training needs, create desirable work culture and climate, helps employees to identify
the key performance areas.
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 It helps in giving feedback to the employees on their performance. It also helps in

counseling done in an open atmosphere with positive strokes; it can yield very good
result.
 Performance appraisal system attempts to collect data through Performance appraisals
of the employees in different sales and also their potentiality for occupying higher
positions.
 Performance appraisal helps to develop self-renewing capability in the organization
on the basis of performance appraisal, self-correcting system be introduced which
could keep on suggesting changes so that purposeful system may operate in the
organization.
 Several assumptions bring reality and give clear cut directions for the employees to
put in his efforts.
 Participating planning and review increases job satisfaction on the part of appraiser.
 Participating process also develop appraise by providing an opportunity to learn from
his boss and vice-versa while the appraise may learn more about himself his work, the
expectations of the boss, the company’s future plans, the appraiser support
requirements and development need to perform his job effectively. In other words,
it improves communication in the organization. It brings about more objectivity in
appraisal data and consequently in the promotion decision. It increases accountability.
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PERFORMANCE APPRAISAL PROCESS UNDER STUDY
ESTABLISH PERFORMANCE STANDARD
I.
COMMUNICATE PERFORMANCE EXPECTATIONS
MEASURE ACTUAL PERFORMANCE
COMPARE ACTUAL PERFORMANCE WITH STANDARD
II
DISCUSS APPRAISAL WITH THE EMPLOYEEI
INITIATE CORRECTIVE PLAN
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STEP 1- ESTABLISH PERFORMANCE STANDARD
The process of evaluation begins with the establishment of performance standard. At

the time of designing a job and formulating a job description performance standard are
usually developed for the position. This standard should be clear and not vague; and objective
enough to be understood and measured. This standard should be discussed to the supervisor
to find out which different factors are to be incorporated. Weights and points to be given to
each factor and these then should be indicated in the appraisal form.
STEP 2- COMMUNICATE PERFORMANCE EXPECTATIONS
Next step is to communicate these standard to the employees lift to them, would find
it difficult to guess what is expected of them. They make communication effective and
feedback is necessary from the subordinate to the manager. Satisfactory feedback insures that
information communicated by the manager has been received and understood and in the way
it was intended.
STEP 3- MEASURE ACTUAL PERFORMANCE
The third step is the management of performance to determine what actual

performance is necessary to acquire information about it. We should be concerned with how
we measure and what we measures. Our sources of information are frequently used to
measure actual performance- personal observation reports, oral reports, written reports.
STEP 4- COMPARE ACTUAL PERFORMANCE WITH STANDARD
Fourth step is the comparison of actual performance with standard and giving grade
against the skills. The employee is appraised and judgment of his potential for growth and
advancement is done.
STEP 5- DISCUSS APPRAISAL WITH THE EMPLOYEE
The result appraisals are discussed periodically with the employees, where good
points, week points and difficulties are indicate and discussed, so that performance is
improved.
The information the subordinate receive about his assessment has a great impact on
his self-esteem and on his subsequent performance.
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STEP 6- INITIATE CORRECTIVE PLAN
This step is the initiation of corrective action when necessary. Immediate action can
be of two types- one is immediate and deals predominantly with symptoms; the other is basic
and deals in causes.
Coaching and counseling may be done or special assignment and projects may be set;
person may be deputed for formal training courses and decision making responsibility and
authority may be delegated to subordinates.
STEP 7- REWARD FOR GOOD PERFORMANCE
The final step is the reward for their good performance and the reward can be in the
following forms-
(i) Promotions
(ii) Lateral Moves
(iii) Tack Force assignments
(iv) Overseas Assignments
(v) Non-monetary reward
(vi) Cash reward (increment, incentive lump sum, stock
option)
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LITERATURE REVIEW
A performance appraisal interview is a primary and important context for the

supervisor and employee to work together to achieve superior performance. A survey of the
research literature reveals that the appraisal interview functions to provide feedback on
performance, to counsel and provide help, to discover what the employee is thinking, to teach
the employee to problem solve, to help the employee discover ways to improve, to set
performance goals, and to discuss compensation. In addition, the literature reveals three
reasons that determine frequency of interview: the nature of the goal of the interview, the
kind of position the employee has in the organization, and the characteristics of the
employee's performance. Research on climate is centered on praise, criticism and the
superior-subordinate relationship, while that on employee involvement in the performance
appraisal process is divided into preparation and actual participation in the interview,
including goal setting. Future research in this area should investigate employee development,
credibility and interviewer style, evaluation and climate, and rhetorical strategies.
Do you regularly review your employees? If you don't, you can gain many benefits
for you and your employees from instituting an employee performance appraisal program.
One benefit is improved employee performance and another benefit is improved morale on
the part of your employees. Most employees would like to know how they are performing
and all employees like to receive positive feedback about their performance. A performance
appraisal provides many opportunities including an opportunity to praise employees for a job
well done.
Here are some basic tips for how to review your employees:
1. Have a basis for the appraisal. An effective employee appraisal needs to be based on
mutually agreed upon goals and objectives.
2. Suggest that the employee review their own performance before you share your review
with them. This provides a good opportunity to make sure you and the employee agree,
where possible, on the appraisal.
3. Be prepared before you sit down with the employee and perform the appraisal. Before the
meeting, you need to review the objectives previously set with the employee and need to be
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able to provide specifics about the employee's work and how well the employee did or did
not reach the objective.
4. Block out all interruptions. Allowing phone calls to interrupt your discussion with the
employee makes it appear as if you don't care about the employee and as if you don't think
the appraisal process is an important one.
5. Listen and interact. A successful appraisal is not a one way conversation. You must
interact with an employee during the appraisal and get their feedback on what you are saying.
Where there are areas for improvement, you need to get the employee to agree to these areas
and to agree to take action to improve performance. Ideally you and the employee should
agree on what specific actions will be taken to improve performance.
6. Discuss the balance between work life and personal life- An employee who only focuses
on work to the detriment of his personal life will eventually become burned out and will
provide less value to your practice.
7. Don't consider an employee performance appraisal a once a year process. You should be
providing your chiropractic staff members with ongoing feedback about their performance.
Your feedback should be frequent enough so that at an annual performance review session,
nothing discussed will be a surprise to the employee.
8. If one or more employees in your practice supervise others, make sure they perform
regular, effective employee appraisals.
9. Consider an assessment of your own approach for employee performance appraisal

approach. There are many excellent resources about conducting effective employee
performance appraisals.
Conducting effective employee performance appraisals can help improve the

efficiency and profitability of your practice- and also keep your employees happy and more
productive. If you aren't conducting formal employee performance appraisal sessions now,
you should begin putting such a program in place as soon as possible.
The amount of research regarding the topic “Performance Appraisal” is so vast. The
topic is literally not new; it is as old as the formation of the organizations. Before the early
1980’s, majority of theoretical studies emphasized on revamping the rating system within the
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organization. The actions were a great thing to reduce the chaotic of employee’s performance
appraisal (Feldman, 1981). With the passage of the time the methods and rating system
among the employees got enhanced and received an immense appreciation and attentions of
the managers.
Behavioral Observation Scale (BOS) is one of the best techniques utilized by the
managers to arte the employees. The dilemma was on the peak in the 1960s and 1970s. In the
same period couple of new innovated rating scales were introduced, which was Behaviorally
Anchored Rating Scale (BARS) and the Mixed Standard Scale (MSS). The innovations were
dominant one which condensed the errors and improved the observation skills from the
performance appraisal practice. According to the research of Arvey and Murphy (1998), there
were hundreds of thousands of researches had been taken place between the periods of 1950
to 1980, which merely focused on the different types of rating scales. Landy and Farr (1980)
reviewed and researched the methods of performance appraisal in totally a different manner,
in which they understand the rater and process in an organizational context. Other
Performance appraisal reports include the rater characteristics in their report like race, gender
and likeability.
After the year 1980 the biasness among the performance appraisal system occurred
outrageously and appraisal had been granted on the favoritism or race and gender basis rather
examined the knowledge, skills and style of the work of the employee. The accuracy criteria
among the performance appraisal system clutched its grip in the start of the 1980s, where the
researches were emphasized on common psychometric biases which include the diversified
rating errors like leniency, central tendency and halo, which were termed as rating errors in
the appraisal method. It has been observed that the bias free appraisals were inevitably true or
more precisely we can say more accurate, but the concept was totally refused by the research
of Hulin in 1982. According to them the biasfree appraisals were not necessarily accurate
(Murphy & Balzer, 1989).
Researches which had been done in the year 1980 were found the most dominating
one which contributed the appraisal system in a great deal. The researches of the1980 also
helped out to clarify some presumed assumptions regarding the performance appraisal, just
like the work of Murphy (1982). Research has included the measure of employee attitudes
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towards the system of performance appraisal and its acceptance (Roberts, 1990). Bernardian
and Beatty (1984), suggested in their research that behavioral and attitudinal kinds of
measure ultimately prove to be better anticipator as compared with the traditional
psychometric variables, which we have declared earlier as well, like leniency, halo and
discriminability. A Performance Appraisal system is totally ineffective in practice due to the
dearth of approval from the end users (Roberts, 1990).
According to a number of researchers, the enhanced and upgraded performance

appraisal procedure and method will enhance the satisfaction level of the employees and
definitely will improve the process of goal setting within the organization
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INDUSTRY PROFILE
Electricity is a cornerstone of national economy of any country and electrical industry

is so robust that prosperity and development of a country banks on it. The industry has
become an integral traction of the economy of a country, helps in promoting business
development and expansion, and opens the flood gate of employment opportunities for
people throughout the world.
Indian Electrical Industry

In the past, the pace of growth of the Indian electrical industry was laggard for want
of co-ordination & co-operation between authorities and development agencies and
technology backwardness. But at present, concerted efforts are made to rationalize the power
distribution industry & integrate power generation.
The inception of electrical manufacturing industry in India is recent and making

humble progress because of poor technology and dearth of research & development.
Technological development is something on which, electronic manufacturing heavily
depends for its survival, growth, and expansion and no manufacturer can survive unless he
keeps himself in line with the technological progress. The performance of the electrical
industry is closely connected with the electricity program of the country, so Indian
government devised an ambitious mission to provide power to all by 2012. This will multiply
the demand for heavy electrical equipments. The country is capable of manufacturing heavy
electrical equipment because there is a potent manufacturing foothold and technology &
infrastructure are available, competing with global standard.
Indian Electrical Equipment Industry Growth Decelerates to 6.6% Y-o-Y in 2011-12
• Sluggish growth in power sector and escalating imports severely impacting domestic
industry.
• Implies distinct slowdown in industrial capex activities and slowdown in off-take by users
due to credit squeeze, high interest costs etc.
• Industry seeks urgent attention from Central Government at the highest level for conducive
policy initiatives so as to meet laid down targets of power generation capacity and related
transmission & distribution capacity expansions.
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Mumbai,N.Delhi 10 May, 2012: Growth rate of the Indian electrical equipment

industry has decelerated to 6.6% in 2011-12 as compared to 11.3% and 13.7% in 2009-10 and
2010-11 respectively according to data compiled by the Indian Electrical and Electronics
Manufacturers’ Association (IEEMA), the apex Indian industry association of
manufacturers of electrical, industrial electronics and allied equipment. IEEMA has based
these growth figures, after rigorous analysis, on the production and sales data (in volume /
quantity terms) collected from its member organisations, which represent 95% of the entire
sector.
Sluggish growth in the power sector and the escalating imports of electrical
equipment is significantly impacting the commercial viability of the domestic electrical
equipment industry and will have severe long term consequences. All three segments of the
power sector – generation, transmission and distribution are facing several challenges which
need to be addressed expeditiously.
Growth in the capacitor, switchgear and transmission line sectors in 2011-12 turned
negative, implying distinct slowdown in industrial capex activities and slowdown in off-take
by users due to credit squeeze, high interest costs, etc. The cable industry is the only sector
that has shown a double digit growth of 25.7% in the year.
Absence of a level playing field for the domestic industry to compete with imported
electrical equipment, especially from China, is a clear and present threat. Imports of electrical
equipment have grown in the past five years at a CAGR of 28.28%. Current export-import
trends based on 27 major ports trade data indicates that imports continue to rise for 765 kV
transformers & reactors (mostly through power project imports), insulators, LV switchgear
and HV cables. Total Imports of 765 kV transformers & reactors in 2011-12 were Rs. 1,229
crores; in the last quarter (Q4) 2011-12, imports sharply increased by 125% (Rs. 687 crores)
over the combined total of the first three quarters (Rs. 542 crores).
According to IEEMA, urgent policy interventions are required by both the Central
and the State Governments to check the deceleration in growth of the electrical equipment
industry.
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Mr. Ramesh Chandak, President IEEMA said, “In India the focus is largely on
increasing the power generation capacity. There has been a continuous under-investment in
the T& D sector. This lopsided investment pattern needs to be corrected; this will resolve
some of the power problems and will also provide balanced growth.”
Heavy Electrical Industry
Heavy Electrical Industry covers power generation, transmission, distribution and

utilization equipments. These include turbo generators, boilers, various types of turbines,
transformers, switchgears and other allied items. Majority of the products manufactured by
heavy electrical industry in the country, which includes items like transformers, switchgears
etc. are used by all sectors of the Indian economy. Some major areas where these are used are
the multi core projects for power generation including nuclear power stations, petrochemical
complexes, chemical plants, integrated steel plants, non-ferrous metal units, etc.
India is the only other developing country besides China, which produces a full range
of electric power generation and transmission equipment. In fact,the history and growth of
(Bharat Heavy Electricals Ltd.), a public sector enterprise under in the country, symbolizes
the overall growth pattern of heavy electrical industry in the country.BHEL has the unique
distinction of being one of the very few companies in the world, manufacturing all major
power generating equipment under one roof.
The heavy electrical industry is capable of manufacturing transmission and

distribution equipment up to 400 KV AC and high voltage DC. The industry has taken up the
work of up gradation and transmission to the next higher voltage system of 765 KV and have
upgraded their manufacturing facilities to supply 765 KV class transformers, reactors, CTS,
CVT, bushing and insulators, etc.
The investments in R & D by the electrical industry are amongst the largest in the
corporate sector in India. Large electrical equipment used in steel plants, petrochemical
complexes and other such heavy industries are also being manufactured in the country. The
domestic heavy electrical equipment manufacturers are making use of the developments of
the global market with respect to product designs and upgrading of manufacturing and testing
facilities. The heavy electrical industry has established its reference in the global arena also.
These encompass thermal, hydro and gas based power plants, substation projects,
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rehabilitation projects, besides a wide variety of products like transformers, photo voltaic
equipments, insulators, switchgears, motors, etc.
Turbines and Generator Sets:
The capacity established for manufacture of various kinds of turbines such as steam &
hydro turbines including Industrial turbines is more than 7000 MW per annum in the country.
Apart from BHEL, the public sector unit that has the largest installed capacity, there are units
in the private sector also manufacturing steam & hydro turbines for power generation and
industrial use. The manufacturing range of BHEL includes steam turbines upto 660 MW unit
rating and the facilities are available for 1000 MW unit size. They have the capability to
manufacture gas turbines up to 260 MW (ISO) rating and gas turbine based Co-generation
and Combined Cycle Systems for the industry and utility applications. Custom built
conventional hydro turbines of Kaplan, Francis and Pelton types with matching generators
are also available indigenously.
AC Generators manufactured in India are on par with international AC Generators

and consistently deliver high quality power with high performance. Domestic manufacturers
are capable of manufacturing AC Generator right from 0.5 KVA to 25,000 KVA and above
with specified voltage rating. The imports and exports of turbines and generators during
2005-06 were Rs. 2420 crore and Rs. 565 crore respectively.
Boilers:
Bharat Heavy Electrical Ltd.(BHEL) is the largest manufacturer of boilers in the

country (with more than 60% share) and has the capacity to manufacture boilers for Super
Thermal Power Plants apart from utility boilers and industrial boilers. The industry has the
capability to manufacture boilers with super critical parameters upto 1,000 MW unit size. The
domestic industry has the capacity to meet the indigenous requirement / demand for boilers.
The imports and exports of boilers during 2005-06 were Rs.160 crore and Rs.242 crore
respectively.
Transformers:
The domestic transformer industry is well established with capability to provide state
of- the-art equipments. The industry has the capacity to manufacture whole range of power
and distribution transformers including the REC rating of 25,53,100 KVA and also the extra
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High voltage ranges of 400 kV, 600 MVA. Special types of transformers required for
furnaces, rectifiers electric tract etc. and series and shunt reactors as well as HVDC
transmission up to 500 kV are also being manufactured in the country. The imports and
exports of transformers during 2005-06 were Rs.1800 crore and Rs.1640 crore respectively.
Switch gear and Control Gear:
In India, the entire range of circuit breakers from bulk oil, minimum oil, air blast,
vacuum to SF6 are manufactured to standard specification for the benefit of customers. The
ranges of products produced cover the entire voltage range for 240V to 800KV, switchgear
and control gear, MCBs, air circuit breakers, switches, rewireable fuses and HRC fuses with
their respective fuse bases, holders and starters. The industry is competitive in the field of
design and engineering as the skill sets available in the country are relatively less
expensive.The imports and exports of the above equipments during 2005-06 were around
Rs.1690 crore and Rs. 1108 crore respectively.
Electrical Furnaces:
Electrical Furnaces are used in Metallurgical and Engineering industries like forging
and foundry, machine tools, automobiles etc. Adequate capacity for production of these
products has been established.The imports and exports of electrical furnances during 2005-06
were aound Rs.186 crore and Rs. 108 crore respectively.
Shunting Locomotives:
Shunting Locomotives for localized/ internal transport facilities are used in railways,
steel, plants, thermal power plants, etc. BHEL’s Jhansi unit among others is manufacturing
such locomotives. The installed capacity is adequate to meet the domestic demand.
Major Players:
BHEL is the largest engineering and manufacturing enterprise in India in the energy-
related/infrastructure sector, today. BHEL was established more than 40 years ago, ushering
in the indigenous Heavy Electrical Equipment industry in India – a dream that has been more
than realized with a well-recognized track record of performance. The company has been
earning profits continuously since 1971-72 and paying dividends since 1976-77.
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BHEL manufactures over 180 products under 30 major product groups and caters to
core sectors of the Indian Economy viz., Power Generation & Transmission, Industry,
Transportation, Telecommunication, Renewable Energy, etc. The wide network of BHEL’s
14 manufacturing divisions, four Power Sector regional centres, over 100 project sites, eight
service centres and 18 regional offices, enables the Company to promptly serve its customers
and provide them with suitable products, systems and services — efficiently and at
competitive prices. The high level of quality & reliability of its products is due to the
emphasis on design, engineering and manufacturing to international standards by acquiring
and adapting some of the best technologies from leading companies in the world, together
with technologies developed in its own R&D centres.
BHEL has acquired certifications to Quality Management Systems (ISO 9001),

Environmental Management Systems (ISO 14001) and Occupational Health & Safety
Management Systems (OHSAS 18001) and is also well on its journey towards Total Quality
Management.
 BHEL has Installed equipment for over 90,000 MW of power generation — for
Utilities, Captive and Industrial users.
 Supplied over 2,25,000 MVA transformer capacity and other equipment operating in
Transmission & Distribution network up to 400 kV (AC & DC).
 Supplied over 25,000 Motors with Drive Control System to Power projects,
Petrochemicals, Refineries, Steel, Aluminum, Fertilizer, Cement plants, etc.
 Supplied Traction electrics and AC/DC locos to power over 12,000 kms Railway
network.
 Supplied over one million Valves to Power Plants and other Industries.
BHEL’s operations are organized around three business sectors, namely Power, Industry –
including Transmission, Transportation, Telecommunication & Renewable Energy – and
Overseas Business. This enables BHEL to have a strong customer orientation, to be sensitive
to his needs and respond quickly to the changes in the market.
BHEL’s vision is to become a world-class engineering enterprise, committed to enhancing

stakeholder value. The company is striving to give shape to its aspirations and fulfill the
expectations of the country to become a global player.
The greatest strength of BHEL is its highly skilled and committed 42,600 employees.
Every employee is given an equal opportunity to develop himself and grow in his career.
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Continuous training and retraining, career planning, a positive work culture and participative
style of management – all these have engendered development of a committed and motivated
workforce setting new benchmarks in terms of productivity, quality and responsiveness.
Andrew Yule & Co .Ltd.
Andrew Yule & Co. Ltd. is a medium-large (~Rs. 6 Billion / US$ 124 mm) Indian
manufacturing and industrial conglomerate, approximately 97.5% owned by the Indian
Government. It is the main company owned by the Yule Group.It was incorporated as a
private company in 1919. After India gained independence from the British empire, the
company was turned into a public company in 1948.It is currently headquartered in Kolkata
(formerly Calcutta), and has offices in the main Indian cities.The majority of the products and
services offered by the company’s subsidiaries are related to heavy industry and engineering.
Bharat Bhari Udyog Nigam Limited:
Government of India Enterprise, Bharat Bhari Udyog Nigam Limited (BBUNL) is a

Holding Company comprising of five Eastern India based engineering companies under its
umbrella as its wholly owned subsidiary units. BBUNL was established in 1986 as a Public
Sector Holding Company under the administrative control of the Dept. of Heavy Industry &
Public Enterprises, Govt. of India. The individual subsidiary units have more than 150 years
of experience.
Group is engaged in the design, manufacture, supply, erection and commissioning of

a wide range of Capital Goods and Turnkey Projects required by the Core Sector Industries
such as Railways, Ports, Coal Mines, Power, Petroleum and Oil, together with Construction
of Highways & Flyovers.
With an annual turnover of around US Dollar 100 million and having a total
fabrication capacity of 24,000 MT per annum, employing about 3,372 skilled personnel,
BBUNL group companies have been involved in most of the projects of national importance.
Stepping up exports, BBUNL group today has a diverse export profile, spread around forty
countries worldwide.
Bharat Yantra Nigam Limited “The one-source, multi-resource engineering group”

The Bharat Yantra Nigam Ltd (BYN) is a holding company having in its fold six technically
competent engineering organisations forming one of the most versatile engineering
22
groups.The Group caters to the core sector industries with over 50 products, most of which
are backed by foreign collaboration. BYN provides its customers with one-source, multi-
resource heavy engineering solution and packages, including design, engineering,
construction, fabrication, manufacture and project management.
BYN Group comprises of six subsidiary companies spread over five states :-
 Bharat Heavy Plate & Vessels Ltd.(BHPV), Visakhapatnam (Andhara Pradesh)

 Bharat Pumps & Compressors Ltd.(BPC), Allahabad (Uttar Pradesh)
 Bridge & Roof Co. (India) Ltd.(B&R), Kolkata ( West Bengal )
 Richardson & Cruddas (1972) Ltd .(R&C), Mumbai ( Maharashtra )
 Riveni Structurals Ltd.(TSL), Allahabad (Uttar Pradesh)
 Tungabhadra Steel Products Ltd.(TSP), Hospet (Karnataka)
Synergizing the strengths and capabilities of these six giant achievers, BYN has been
handling turnkey projects from concept to commissioning and has emerged as an established
winner in the international market. BYN Units have state-of- the-art technology coupled with
latest manufacturing facilities including full-fledged seafronts for handling oversized
consignments for exports.Each constituent Company is ISO 9001:2000 certified, renowned in
its area of specialization and recognized by leading international inspection agencies like
Lloyds, Bureau Veritas, Crown Agents, Sweco, EIL, PDIL, Humphry & Glassgow, Uhde,
NPCIL, RDSO and BIS. The group has 25 regional offices and 9 manufacturing units spread
all over the country with a turnover of more than US $125 million.
With implementation of numerous innovative approach, BYN has been adapting to

dynamic environment by continuous diversification and moving towards the single vision-
“BUILDING TOMORROW’S WORLD TODAY” BYN’s mission is to excel in every area
of activity with a synergistic approach.
BHPV (ABYN’s Group Company)
Bharat Heavy Plate & Vessels Ltd (BHPV) an ISO 9001:2000 Certified Company
situated at Port city of Visakhapatnam, AP India is a leading organization for Engineering,
Manufacturing Testing, Installation & Commissioning of various equipment, Cryogenics
combustion System, and Turn-key packages required for Process Plant Industries Like
23
Refineries, Petrochemicals, Chemicals, Oil and Gas, Fertilizers, power (including Nuclear),
Steel etc .
With technical backup acquired from world renowned companies, BHPV’s product
range include Pressure Vessels, Columns, Towers, Heat Exchangers, Air Fin coolers, Storage
Tanks, Reactors, Multilayer vessels, Nitrogen and Oxygen Plants, Cryogenic Storage Tanks,
Purge Gas Recovery Units, Evaporation plants, Boilers, Fired heater, Deaerators, Steam
Condensers, Fired Heaters, Skid Mounted packages for offshore operations and system
packages like Sulpher Recovery units, Vacuum Ejector system, Crude Stabilization Unit,
LPG Storage and handling Systems.
BharatPumps&CompressorsLimited (ABYN’sGroupCompany)
BPC was incorporated in 1970 with an objective of indigenous manufacture of

process pumps, gas compressors and high pressure seamless gas cylinders. With international
technical collaborations – Pomps Guinard, France; Nuovo Pignone, Italy; Oil Well, USA;
Uraca, Germany; B.J. Hughes, USA; Coyne, USA and others, the company has established
itself as a well-known manufacturer of a wide range of high-tech products in the fluid-
handling system. In fact, BPC is the exclusive manufacturer in the country of carbamate and
ammonia pumps for fertilizer plants, mud pumps, cement pumping units and high-pressure
reciprocating gas compressors for the oil and gas industry.
Some of the other products manufactured by BPC include centrifugal pumps,

reciprocating plunger and piston pumps, nuclear pumps, cylinder cascades, compressed
natural gas compressors (CNG) and welded and seamless high pressure gas cylinders. All
these products are built to international design codes under the surveillance of reputed
inspection agencies like Lloyds, Bureau Veritas, Snam Progetti, Humphry and Glassgow,
EIL, PDIL, NPCIL, BIS and CCE etc. BPC is an ISO9001 certified company for design
manufacture and supply erection and commissioning of rotating equipment like Pumps and
Compressor etc.
All of these equipment are used in core sector industries such as oil and gas
exploitation, refineries, chemicals, petrochemicals, fertilizers, air and gas separation plants,
thermal and nuclear power plants and the defence industry.
24
The Company’s major clients, to name a few, are the Oil & Natural Gas Corporation
Ltd., Oil India Ltd., Indian Oil Corporation Ltd., Krishak Bharti Co-operative Ltd., Indian
Petrochemical Corporation Ltd., Indian Farmers Fertilizer Co-operative Ltd., Gas Authority
of India Ltd., OIL, and Nuclear Power Corporation Ltd.
The equipment supplied by BPC includes :-
 Carbamate and ammonia pumps to Krishak Bharati Co-operative Ltd., Rashtriya

Chemicals & Fertilizers Ltd., Chambal Fertilizers Ltd., and Tata Chemicals.
 Cementing units to Oil & Natural Gas Corporation Ltd.
 Mainline oil pumps for Oil & Natural Gas Corporation Ltd. at Bombay High.
 Pipeline pumps to Indian Oil Corporation Ltd., Bharat Petroleum Corporation Ltd.
and Hindustan Petroleum Corporation Ltd.
 Bone dry Nitrogen Compressors for Indo Gulf Fertilizers Corporation Ltd.
 High Pressure Compressed Natural gas (CNG) Compressors to Gas Authority of India
Ltd.
 Sucker-rod pumping units to Oil & Natural Gas Corporation Ltd.
 Hydrogen Make-up Compressors to IOCL’s Gujarat Hydrocracker Project at Baroda.
 High pressure seamless oxygen and DA cylinders to innumerable gas manufacturers
including a large consignment exported to Algeria.
Bridge&RoofCo. (India)Limited (ABYN’sGroupCompany)
B&R was incorporated in 1920 and is one of India‘s premier construction companies.
The company undertakes all categories of Civil and Mechanical construction related to mega
projects like refineries, fertilizers, power, cement, steel and non-ferrous metal plants,
chemical complexes, storage tanks etc. both in India and abroad.
Major Civil Construction jobs include heavy foundation in various projects, prilling
towers and parabolic silos in fertilizer plants, high-rise buildings, concrete bridges, sports and
stadium complexes and high concrete chimneys etc.
Other diverse civil construction activities include cooling towers, mechanized

construction of roads and high-ways, piling (both bored and driven) and soil densification
jobs, marine berth construction and turnkey construction of raw water and effluent treatment
plants. The company employ the most modern methods of construction in all its civil
engineering works, including Slip form system for tall structures and various mechanized
25
equipment like Tower Cranes, Truck Mixers, Batching Plants, Dozers, Excavators, Dumpers
etc., keeping pace with modern construction methodologies.
B&R has been marching towards excellence and expertise in Mechanical

Construction. The major mechanical works include heavy structural steel work of various
projects, construction of all types of heaters, furnaces including blast furnace, pipelines,
special pipes, steel bridges and turnkey construction of floating roof storage tanks for oil
refineries etc. These have been augmented by diversifying in cryogenic storage tanks, and
turnkey construction of zero flare group gathering stations, oil terminals, ore beneficiation
plants, non-ferrous plants etc. The Company has also executed turnkey contract for 65,000
cum. Capacity storage tanks, including civil and mechanical construction and it can claim to
be the pioneer in this field.
Besides, B&R has established itself as India‘s foremost and most versatile
manufacturing and construction organization in the field of structural work. It has executed
contracts for major steel plants, power stations, industrial and office buildings, highways and
railway bridges, sports stadia etc
B&R also undertakes the manufacture of Steel Structures and Railway Bridge
Girders, Bunk Houses, LPG Storage Bullets, Pressure Vessels and Heat Exchangers at its
workshop at Howrah. It has also taken up manufacture of Bailey Type Unit Bridges, Forged
Flanges, House on Wheels and Truck Mounted Domestic Containers etc.
Bharat Petroleum Corporation Ltd., Indian Oil Corporation Ltd., Bongaigaon

Refinery and Petrochemicals Ltd., HPCL, Cement Corporation of India Ltd., Mangalore
Refineries and Petrochemicals Ltd., Damodar Valley Corporation, National Thermal Power
Corporation, Oil and Natural Gas Corporation Ltd., Rajasthan Atomic Power Project, Indian
Railways- Eastern & South Eastern, P.W.D., U.P., Tata Engineering & Locomotive Co. Ltd.,
Cochin Refineries Ltd., His Majesty’s Government of Nepal-Department of Roads. Are some
of the high profile clients.
26
ORGANIZATIONAL PROFILE
BHARAT HEAVY ELECTRICAL LIMITED, HATIA UNIT
BHEL- An Overview
BHEL is the largest engineering and manufacturing enterprise in India in the

energy-related/infrastructure sector, today. BHEL was established more than 40 years ago,
ushering in the indigenous Heavy Electrical Equipment industry in India - a dream that has
been more than realized with a well-recognized track record of performance. The company
has been earning profits continuously since 1971-72 and paying dividends since 1976-77.
BHEL caters to the core sectors of the Indian Economy, viz. Power, Transmission,
Industry, Transportation, Renewable Energy, Oil & Gas and Defence. The wide network of
BHEL’s 15 Manufacturing Divisions, 4 Power Sector Regional Centers, 8 Service Centers,
15 Regional Offices, 4 Overseas Offices, 1 Subsidiary and over 100 project sites spread all
over India enables the Company to promptly serve its customers and provide them with
suitable products, systems and services -- efficiently and at competitive prices. The high level
of quality & reliability of its products is due to the emphasis on design, engineering and
manufacturing to international standards by acquiring and adapting some of the best
technologies from leading companies in the world, together with technologies developed in
its own R&D centers.
BHEL has acquired certifications to Quality Management Systems (ISO 9001),

Environmental Management Systems (ISO 14001) and Occupational Health & Safety
Management Systems (OHSAS 18001) and is also well on its journey towards Total Quality
Management.
The greatest strength of BHEL is its highly skilled and committed team of 46,748
employees. Every employee is given an equal opportunity to develop himself and grow in his
career. Continuous training and retraining, career planning, a positive work culture and
participative style of management have engendered development of a committed and
motivated workforce setting new benchmarks in terms of productivity, quality and
responsiveness.
27
DIVISIONS – OPERATIONS
Power:
BHEL manufacture a wide range of products’ and systems for thermal, nuclear, gas
and hydro based power paints to meet customer requirements for power generations,
transmission, and utilization BHEL build power generation sets already account for nearly
two, third of the overall installed capacity in India.
Transportation:
BHEL manufactures a vast Range of transmission equipment such as transformers,

reactors, switcher, and relay panel, insulators, capacitors and instruments transformers sets.
Industry:
BHEL has developed capability to product a variety of electrical, electronic and

mechanical equipment, to meet the demand of a host of industries viz, fertilizers
petrochemicals, to coal, mining etc.
Oil and Gas:
BHEL is making significant contribution towards development of oil & gas industries
in the country, both for on shore.
Telecommunication:
BHEL entry into field has given India an electronic private automatic branch
exchange system, the BHEL 128 and rural automatic exchanged based on indigenous
technology from C-DOT. The latest digital switching used to these exchanges and their
network compatibility opens up endless possibilities in business communication of voice as
well as data.
Research and development:
BHEL engineering and R&D efforts are focused on improving the quality of its
products, upgrading the existing technologies, accelerating indigenization and developing
new products for diversification.
28
International Operations:
The presence of BHEL products and services extends to over 50 countries ranging for
the use in west to New Zealand in the far EAST. Export order for individual products to
complete power stations.
DEPARTMENTALIZATION OF FUNCTIONS:
 PRODUCTION
 FINANCE
 MARKETING
 PERSONAL MANAGEMENT
 R&D.
BURINESS OFFICES, MANUFACTRING UNITS, SERVICES CENTERS
BANGALORE BARODA BOMBAY
CHANDIGAR CHENNAI JAIPUR
BHUVANESHWAR KOLKATTA PATNA
NEW DELHI GUWATHI JABALPUR LUCKNOW
HATIA NAGPUR BHOPAL
Board of Directors
 Shri B. P. Rao - Chairman & Managing Director

29
 Shri Saurabh Chandra - Additional Secretary & Financial Adviser

 Shri Ambuj Sharma - Joint Secretary
PART TIME NON-OFFICIAL DIRECTORS
 Shri Ashok Kumar Basu

 Shri M. A. Pathan
 Smt. Reva Nayyar
 Shri V. K. Jairath
 Shri Trimbakdas S. Zanwar
 Shri S. Ravi
FUNCTIONAL DIRECTORS
 Shri Anil Sachdev - Director (HR)

 Shri Atul Saraya - Director (Power)
 Shri O. P. Bhutani - Director (E, R & D)
EMPLOYEE DESIGNATION:
The employees of B. H. E. L are designated according to their nature of job and

experience.
EXECUTIVES
ET - Executive Trainee
E1 - Officer / Engineer / Executive
E2 - Sr. Officer / Sr. Engineer/ Sr. Executive
E3 - Dy. Manager
E4 - Manager
E5 - Sr. Manager / Specialist
E6 - Dy. Gen. Manager/ Specialist
E6A - Sr. Dy. General Manager
E7 - Addl. General Manager
E8 - General Manager I/C / Group General Manager/General Manager /Chief
E9 - Executive Director
SUPERVISORS
S0 - Supervisor Trainee
SAI - Charge man
SAII - Asstt. Foreman
30
JE - Junior Engineer
SAIII - Foreman
SAIIIA- Inspector Gr. I (Sanitation)
SAIV - General Foreman / Additional Engineer Gr.II
SAV - Executive Foreman / Additional Engineer GR.I
SAVI - Sr. Executive Foreman / Sr. Additional Engineer GR.II
SAVII - General Executive Foreman / Sr. Additional Engineer GR.I
SAVIII- Executive Additional Engineer Gr. II
SBI - Asstt. Office Superintendent
SBII - Office Superintendent
JE - Junior Executive
SBIII - Sr. Office Superintendent / Dy. Officer
SBIIIA - EDP Assistant Gr.I / Dy. Officer (EDP)
SBIV - Chief Supervisor /Additional Officer Gr. II
SBV - Executive Supervisor /Additional Officer Gr. I
SBVI - Sr. Executive Supervisor / Sr. Additional Officer Gr. II
SBVII - General Executive Supervisor / Sr. Additional Officer Gr. I
SBVIII - Executive Additional Officer Gr. II
WORKERS
AI - Unskilled worker
AII - Semi skilled worker
AIII - Artisan Gr. IV
AIV - Artisan Gr.III
AV - Artisan Gr. II
AVI - Artisan Gr. I
AVII - Technician
AVIII - Sr. Technician
AIX - Master Technician
AIXA - Loco Driver Gr. I
AX - General Technician
AXI - Chief Technician
AXII - Sr. Chief Technician
BI - Attendant Gr.II
BII - Attendant Gr. I
BIII - Clerk
BIV - Asstt Gr. II
BV - Nurse Gr. II
BVI - Asstt. Gr. I
BVII - Sr. Asstt. Gr. III
BVIII - Sr. Asstt. Gr. II
BIX - Sr. Asstt. Gr. I
BIXA - Sr. Estate Asstt. Gr.I
BX - General Asstt.
31
BXI - Chief Asstt.

BXII - Sr. Chief Asstt.
BHEL TURNOVER OF LAST 5 YEARS
BHEL-HATIA RAMACHANDRAPURAM UNIT
About 30 KMS a way from the city centre on the fringes of the historical city of the
Qutub Shahi Kings lies the hub of the Ramachandrapuram Unit of Bharat Heavy Electricals
Limited, Hatia. B.H.E.L, Hatia made a beginning in 1965 with the idea of “Bringing Power
to the People”.
As a member of the prestigious “ BHEL’’ family, BHEL – Hatia has earned a

reputation as one of its most important manufacturing units, contributing its lion’s share in
BHEL Corporation’s overall business operation.
The Hatia unit was setup in 1963 and started its operations with manufacture of turbo
generator sets and auxiliaries for 60 and 110 MW thermal utility sets.
Over the years it has increased its capacity range and diversified its operations to
many other areas. Today, a wide range of products are manufactured in this unit, catering to
the needs of variety of industries like fertilizers in this unit, catering to the needs of variety
of industries like fertilizers & chemicals, petrochemicals & refineries, paper, sugar, steel etc.
BHEL – Hatia unit has collaborations with world renowned MNCs like M/S General
Electric, USA, M/S Nuovo Pignone, etc.
Major Achievements of BHEL:
 Acquired certifications for Quality Management systems (ISO 9001), Environmental

Management Systems (ISO 140001) AND Occupational health & Safety Management
Systems (OHSAS 18001).
 Installed equipment for over 90,000 MW of power generation.
 Supplied over 2,25,000 MVA transformer capacity and other equipment operating in
Transmission & Distribution network up to 400 kV (AC & DC).
32
 Supplied over 25,000 Motors with Drive Control System to Power projects,
Petrochemicals, Refineries, Steel, Aluminum, Fertilizer, Cement plants, etc.
 Supplied Traction electrics and AC/DC locos to power over 12,000 km Railway
network.
 Supplied over one million Valves to Power Plants and other Industries.
PRODUCTS: -
BHEL manufactures a wide range of power plant equipment and also caters to the
industries sector.
The products like :
 Gas Turbines
 Steam Turbines
 Compressors
 Turbo Generators
 Heat Exchangers
 Pumps
 Pulverizes
 Switch Gears
 Gear Boxes
 Oil rigs
 Project Engineering
33
GAS TURBINES
STEAM TURBINES
34
COMPRESSORS
TURBO GENERATORS
35
PUMPS
PULVARISERS
36
OBJECTIVES OF BHEL:
PDIL has defined its objectives for succeeding in its mission as follows:
A. PROFITABILITY: To manage the assets and human resources, in the most effective and
efficient manner, to ensure reasonable return on investment and to maintain adequate
liquidity.
B. GROWTH: To achieve reasonable and consistent growth and to generate resources for
developing the infrastructure and expertise in the Company
C. DEVELOPMENT: To enrich its design capabilities and to improve catalyst

manufacturing
D. ORGANIZATIONAL ENVIRONMENT: To develop and maintain an organizational

environment for initiative, innovation and productivity , and also to ensure a fair deal to the
employees with humane approach
37
E. BUSINESS DEVELOPMENT: To generate adequate profitable Business by utilising the

existing resources to the maximum extent
F. DIVERSIFICATION: To maximize generation of business in sectors other than Fertilizer

sector
G. OBLIGATION TO SOCIETY: To conduct business in the most ethical manner, and

with legal standards, in order to generate a good social environment.
38
39
MAJOR CLIENTS
 Rashtriya Chemicals & Fertilizers Ltd.

 Indian Farmers Fertilizer Co-operative Ltd.
 National Fertilizers Ltd.
 Krishak Bharati Co-operative Ltd.
 Nagarjuna Fertilizers & Chemicals Ltd.
 Chambal Fertilizers & Chemicals Ltd.
 Tata Chemicals Ltd.
 Indo Gulf Fertilizers Ltd.
 Brahamputra Valley Fertilizer Corporation Ltd.
 Kribhco Shyam Fertilizers Ltd. (erstwhile OCFL)
 Mangalore Chemicals & Fertilizers Ltd.
 Madras Fertilizers Ltd.
 Indian Oil Corporation Ltd.
 GAIL (India) Ltd
 Zuari Industries Ltd.
 Oil and Natural Gas Corporation
 Bharat Petroleum Corporation Ltd.
 Hindustan Petroleum Corporation Ltd.
 Indraprastha Gas Ltd.
 Oil India Ltd.
 Numaligarh Refinery Ltd.
 DGMAP, Ministry of Defence, Govt. of India
 National Peroxide Ltd.
 Petroleum India International
 Rajasthan Rajya Vidyut Utpadan Nigam Ltd.
 UP Rajya Vidyut Utpadan Nigam Ltd.
 Bharat Heavy Electricals Ltd.
 Burrup Fertilizers Pty. Ltd. (BFPL), Australia
 Indo Egyptian Fertilizers Co. SAE, Egypt.
 Sumatec Corporation Sdn. Bhd., Malaysia
40
METHODOLOGY
Need for study:
 To know how the Performance Appraisal System was performed in different levels of
the company.
 To identify which type of performance appraisal system is used in the organization.
 To identify whether the training programs are conducted based on the performance
appraisal system.
Objectives of the study:
 To study what is performance appraisal why organization needs it.

 To study the different ways of performance appraisal.
 To study traditional and modern performance appraisal methods.
 To study challenges for HR manager for performance appraisal.
Scope for study:
 Study covers selected employees of BHEL.

 Survey conducted no methods of performance appraisal that was used in BHEL.
 Study focuses on evaluation design, implementation, feedback, participation,
parameters of the appraisal system.
 To help management plan for development and growth.
 Target sample of 100 employees were selected at random from different levels.
Research Design:
This research paper is EXPLORATORY TYPE
Research Methodology:
The data collection methods include both primary collection method.
 PRIMARY METHOD: This method includes the data collected from the personal
interview through questionnaire survey.
41
Limitations of Study:
 If the Sample size would be large then the study would be more effective and clear
 Study was restricted only to a few departments
 Lack of Cooperation from a few employees resulting into a limitation
 Language being used by the operating level was regional, resulting into a chaos
situation
Sample size considered is 100.
42
ANALYSIS
1. Is Performance Appraisal System required in the organization?
Table 1
Strongly agree 44
Agree 50
No opinion 0
Disagree 6
Strongly Disagree 0
Chart 1
Inference:
From this graph we can notice that most of them have agreed to the statement that
there must be a performance appraisal system in the organization to evaluate the
employee’s performance in a better way.
43
2. Satisfied with the existing performance appraisal system
Table-2
Strongly agree 12
Agree 48
No opinion 10
Disagree 24
Strongly Disagree 6
Chart-2
Inference
From the above table and graph we can notice that more than 48% of the employees
have agreed that the performance appraisal system used at BHEL is safistying. 24%
have disagreed to it, May be the organization needs to improve a little on the methods
which it uses to evaluate the employees performance.
44
3. The performance of the organization is assessed by self, superior or consultant
Table-3
Strongly agree 16
Agree 54
No opinion 18
Disagree 8
Strongly Disagree 4
Chart-3
Inference:
From the above table, it is noted that 54% of the employees AGREE to the
performance assessment of the organization and 16% of the employees STRONGLY
AGREE to it. From which we can actually say that the employees are well satisfied
with the existing appraisal system
45
4. The performance appraisal helps to win cooperation and team work.
Table-4
Strongly agree 14
Agree 56
No opinion 12
Disagree 14
Strongly Disagree 4
Chart-4
Inference:
Majority of them agree that through performance appraisal system in the

organization, cooperation and team work has an efficient increase which helps them
to perform better.
46
5. The performance appraisal is helpful reducing grievance among the employees
Table-5
Strongly agree 12
Agree 58
No opinion 12
Disagree 14
Strongly Disagree 4
Chart-5
Inference:
Majority of the employees working in the organization agree that performance

appraisal is helpful in reducing the grievance among the employees. More than 58%
have responded positively to the above statement.
47
6. The performance appraisal is helpful for improving personnel skill.
Table-6
Strongly agree 20
Agree 54
No opinion 10
Disagree 10
Strongly Disagree 6
Chart-6
Inference:
From the above graph and table we can notice that performance appraisal is very
helpful to improve their personnel skills. More than 54% have agreed to it but more
than 10% have also responded in a negative way.
48
7. Training programmers are effective for individual and organization development
Table-7
Strongly agree 26
Agree 52
No opinion 10
Disagree 8
Strongly Disagree 4
Chart-7
Inference:
Majority of the employees agree that training programs conducted by the organization
are actually helpful to improve the individuals performance in the organization and
also helps in organizational development.
49
8. The performance ratings are done periodically.
Table-8
Strongly agree 22
Agree 50
No opinion 18
Disagree 10
Strongly Disagree 0
Chart-8
Inference:
Majority of them agree that performance appraisal which is done in the organization
is done periodically, that means the employees working in the organization have a
knowledge about how their performance is been evaluated.
50
9. The performance appraisal system helps to identify the strength and weakness of the
employee.
Table-9
Strongly agree 26
Agree 42
No opinion 18
Disagree 8
Strongly Disagree 4
Chart-9
Inference:
In this organization the employees know that performance appraisal helps them to
identify the strengths and weaknesses of the employees, and helps them to improve
their efficiency.
51
10. The performance rating is helpful for the management to provide employee counselling.
Table-10
Strongly agree 20
Agree 40
No opinion 16
Disagree 18
Strongly Disagree 6
Chart-10
Inference:
From the above graph and chart we can notice that majority of the employees agree
that their superiors or the top management help the low performers by giving them
counseling and discussing their problems and needs and help them to improve their
performance.
52
11. Promotion is purely based on performance appraisal
Table-11
Strongly agree 6
Agree 42
No opinion 16
Disagree 28
Strongly Disagree 8
Chart-11
Inference:
From the above graph and table we can notice that employees have responded
positively and negatively to the statement. May be the employees feel that the
organization does not
Promote the employees according to their performance.
53
12. Management fixes salary through the performance rating.
Table-12
Strongly agree 14
Agree 32
No opinion 28
Disagree 22
Strongly Disagree 4
Chart-12
Inference:
The employees again have responded in a positive and a negative way. May be the
management fixes the salary according to the seniority and experience gained.
54
13. Performance rating helps to fix increment.
Table-13
Strongly agree 6
Agree 34
No opinion 24
Disagree 26
Strongly Disagree 10
Chart-13
Inference:
Majority of them have responded positively that the organization gives increment and
incentives based on the performance levels.
55
14. Transfer, demotion, suspension and dismissal is based on performance appraisal.
Table-14
Strongly agree 14
Agree 22
No opinion 34
Disagree 20
Chart-14
Inference:
As we can notice from the above graph and table, the employees have responded in a
positive and a negative way. Transfer, demotion, suspension and dismissal may be is
not completely based on the performance, their may be many other factors which lead
to these.
56
15. The desired target of the organization is achieved through the performance appraisal.
Table-15
Strongly agree 12
Agree 38
No opinion 28
Disagree 14
Chart-16
Inference:
Majority of them have responded positively and have agreed to the statement saying
that
The desired targets can be achieved through continuous evaluation of performance
appraisal.
57
16. Performance appraisal increases employee motivation
Table-16
Strongly agree 22
Agree 48
No opinion 18
Disagree 10
Strongly Disagree 2
Chart-16
Inference:
Through performance appraisal the employees agree that their motivation levels have
increased which help them to work more efficiently.
58
17. Appraisal system helps in assessing the achievement or failure of work.
Table-17
Strongly agree 14
Agree 42
No opinion 34
Disagree 8
Strongly Disagree 2
Chart-17
Inference:
From the above data we conclude that around 56% (14 S.A + 42 A) of the employees
think that the appraisal system helps in assessing the achievements of the organization
and about 34% have no opinion about the assessment being done. In this case these
employees should be motivated and told the importance of this system in order to get
a better productivity of work in the organization.
59
18. Have a separate committee to review the performance appraisal result.
Table-18
Strongly agree 26
Agree 36
No opinion 24
Disagree 10
Strongly Disagree 4
Chart-18
Inference:
Majority of the employees know that there is a committee to review the performance
appraisal of the employees in the organization.
60
FINDINGS
 Most of the employees are agreeing that performance appraisal is needed in the
organization.
 Maximum number of employees in the organization is satisfied with the existing
performance appraisal.
 Most of the employees agreeing that performance appraisal have to be assessed by self,
superior, consultant.
 Maximum number of employees agreed that the existing performance appraisal system is
helping them in reducing the grievance between the employees.
 Employees proposed that the performance appraisal is helpful for developing personal
skill.
 Promotions and Increments in salary are given based on the performance rating of an
employee.
 Employees agreed that Transfer, demotion, suspension and dismissal is based on
 Maximum Number of Employees agreed that the performance appraisal is increasing
their motivational levels.
61
SUGGESTIONS
 Performance appraisal report should be done genuinely not based on any biases
 For better results 360 degree appraisal system of evaluation can also be adopted by the
organization
 Performance Appraisal is not a onetime affair, for better results the organization should
do the appraisal in frequent intervals.
62
LIST OF CHARTS
Description Page number
Chart-1 42
Chart-2 43
Chart-3 44
Chart-4 45
Chart-5 46
Chart-6 47
Chart-7 48
Chart-8 49
Chart-9 50
Chart-10 51
Chart-11 52
Chart-12 53
Chart-13 54
Chart-14 55
Chart-15 56
Chart-16 57
Chart-17 58
Chart-18 59
63
LIST OF TABLES
Description Page number
Table-1 42
Table -2 43
Table -3 44
Table -4 45
Table -5 46
Table -6 47
Table -7 48
Table -8 49
Table -9 50
Table -10 51
Table -11 52
Table -12 53
Table -13 54
Table -14 55
Table -15 56
Table -16 57
Table -17 58
Table -18 59
64
BIBILOGRAPHY
 www.citehr.com
 www.bhel.com
 www.bhelhyd.com
 www.scribd.com
 www.slideshare.com
 www.businessballs.com
65
ANNEXURE
A Study on Performance Appraisal
SOCIO – DEMOGRAPHIC FACTORS:
1) Name (optional): ……………………
2) Sex:
Male Female
3) Age :
Up to 20 years 20 – 30 years 30 – 40 years above 40 years
4) Marital status :
Married Unmarried
5) Educational qualification :
SSLC HSC Diploma UG PG
6) Department :
Production HR R&D Accounts Others
7) Year of service:
Upto 2 year’s 2 -6 years 6 -10 years above 10 years
8) Monthly Income: (in Rs.)
Below 10,000 10,000 -15,000 15,000 – 20,000 above 20,000
66
SA-STRONGLY AGREE
A-AGREE
NO-NO OPINION
DA-DISAGREE
SDA-STRONGLY DISAGREE.
s.no Factors SA A NO DA SDA

9 Performance appraisal is needed in
the organization.
10 Satisfied with the existing
performance appraisal system
11 The performance of the
organization is assessed by self,
superior or consultant.
12 The performance appraisal helps to
win cooperation and team work
13 The performance appraisal is
helpful in reducing grievance
among the employees
14 The performance appraisal is
helpful for improving personnel
skill.
15 Training programmers are effective
for individual and organization
development.
16 The performance ratings were done
periodically
17 The performance appraisal system
helps to identify the strength and
weakness of the employee.
18 The performance rating is helpful
for the management to provide
employee counselling.
19 Promotion is purely based on
20 Management fixes salary through
the performance rating
21 Performance rating helps to fix
Increment.
22 Transfer, demotion, suspension and
dismissal is based on performance
Appraisal.
23 The desired target of the
organization is achieved through
the performance appraisal.
67
24 Performance appraisal increases

employee motivation
25 Appraisal system helps in assessing
the achievement or failure of work.
26 Have a separate committee to
review the performance appraisal
result.
27). Suggestions if any:

……………………………………………………………………………………………
……………………………………………………………………………………………
……………………………………………………………………………………………
……………………………………………………………………………………………
…………
THANK YOU VERY MUCH FOR YOUR SUPPORT
68

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BHARATH HEAVY ELECRICALS LIMITED

“PERFORMANCE APPRAISAL SYSTEM”

A Project report submitted in partial fulfillment

For the Award of the

“MASTERS OF HUMAN RESOURCE MANAGEMENT”

(ROLL NO: 1302000856)

SIKKIM MANIPAL UNIVERSITY

Under the Guidance of

I hereby declare that the project report “PERFORMANCE APPRAISAL

This is to certify that the project Report titled “PERFORMANCE APPRAISAL

Knowledge is power for a management student this power of Knowledge is un

I am grateful to Mr. S.P.Tiwari (Associate Professor), Sikkim Manipal University

It is my pleasure to acknowledge and express my gratitude to all those who helped me

I am very thankful to Sri. P.C.Mohanty (HR), of BHARATH HEAVY

I am thankful to Sri Nava Jeevan(HR), of BHARATH HEAVY ELECTRICALS LIMITED

CONTENTS PAGE NUMBERS

1. Theoretical Framework 6-15

A “Performance Appraisal” is a process of evaluating an employee’s performance on

According to Hegel-“It is the process of evaluating the performance and qualification

Performance Appraisal is the systematic evaluation of the individual with respect to

MULTIPLE USES OF PERFORMANCE ASSESSMENT

GENERAL APPLICATIONS SPECIFIC PURPOSES

Developmental Uses: 1. Identification of individual Needs

3. Fixing transfers and job Assignments

4. Identification of strength & Weakness.

Administrative uses: 1. Salaries

Organizational Maintenance Objectives: 1.HR Planning

2. Organizational training needs.

3. Evaluation of Org. goal Achievement

4. Evaluation of H.R. systems

Documentation: 1.Helping meets legal Requirement

2. Useful for future research.

GENERAL VIEWS ABOUT PERFORMANCE APPRAISAL

 It is an important topic nowadays in every organization because it can play a

 It helps in giving feedback to the employees on their performance. It also helps in

PERFORMANCE APPRAISAL PROCESS UNDER STUDY

ESTABLISH PERFORMANCE STANDARD

COMMUNICATE PERFORMANCE EXPECTATIONS

MEASURE ACTUAL PERFORMANCE

COMPARE ACTUAL PERFORMANCE WITH STANDARD

DISCUSS APPRAISAL WITH THE EMPLOYEEI

INITIATE CORRECTIVE PLAN

STEP 1- ESTABLISH PERFORMANCE STANDARD

The process of evaluation begins with the establishment of performance standard. At

STEP 2- COMMUNICATE PERFORMANCE EXPECTATIONS

STEP 3- MEASURE ACTUAL PERFORMANCE

The third step is the management of performance to determine what actual

STEP 4- COMPARE ACTUAL PERFORMANCE WITH STANDARD

STEP 5- DISCUSS APPRAISAL WITH THE EMPLOYEE

STEP 6- INITIATE CORRECTIVE PLAN

STEP 7- REWARD FOR GOOD PERFORMANCE

A performance appraisal interview is a primary and important context for the

9. Consider an assessment of your own approach for employee performance appraisal

Conducting effective employee performance appraisals can help improve the

According to a number of researchers, the enhanced and upgraded performance

Electricity is a cornerstone of national economy of any country and electrical industry

Indian Electrical Industry

The inception of electrical manufacturing industry in India is recent and making

Indian Electrical Equipment Industry Growth Decelerates to 6.6% Y-o-Y in 2011-12

Mumbai,N.Delhi 10 May, 2012: Growth rate of the Indian electrical equipment

Heavy Electrical Industry

Heavy Electrical Industry covers power generation, transmission, distribution and

The heavy electrical industry is capable of manufacturing transmission and