CHAPTER – I

INTRODUCTION

I) HUMAN RESOURCE MANAGEMENT-AN OVERVIEW Human resource management (HRM), or human resource

development, entails planning, implementing, and managing recruitment, as well as selection, training, career, and organizational development initiatives within an organization. The goal of HRM is to maximize the productivity of an organization by optimizing the effectiveness of its employees while

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simultaneously improving the work life of employees and treating employees as valuable resources. Consequently, HRM encompasses efforts to promote personal development, employee satisfaction, and compliance with

employment-related laws. To achieve equilibrium between employer and employee goals and needs, HRM departments focus on these three general functions or activities: planning, implementation, and evaluation. The planning function refers to the development of human resource policies and regulations. Human resource managers attempt to determine future HRM activities and plan for the implementation of HRM procedures to help companies realize their goals. Implementation acquisition, of HRM plans involves and four primary activities: Acquisition

development,

compensation,

maintenance.

entails the hiring of workers most likely to help a company attain its goals. The development function encompasses the training of workers to perform their tasks in accordance with company strategy. This activity also involves company efforts to control and change employee behavior via reviews, appraisals, incentives, and discipline. Compensation covers the payment of employees for their services. Maintenance requires structuring labor relations —the interaction between a company's management and its unionized employees—and ensuring compliance with federal and state employment laws. Finally, the evaluation function includes the assessment of a company's HRM policies to determine whether they are effective. The need for an organized form of HRM emerged during the industrial revolution, as the manufacturing process evolved from a cottage system to factory production. As the United States shifted from an agricultural economy to an industrial economy, companies were forced to develop and implement

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effective ways of recruiting and keeping skilled workers. In addition, industrialization helped spur immigration, as the country opened its borders to fill industrial positions. Filling these jobs with immigrants, however, created an even greater need for adequate management of employees. Between the 1880s and the 1940s, immigration rose significantly and remained robust until World War II. Advertisements circulated throughout the world depicting the United States as the land of opportunity where goodpaying industrial jobs were plentiful. As a result, the country had a steady stream of low-skill, low-cost immigrant workers who occupied manufacturing, construction, and machinery operation positions. Even though these

employees performed largely routine tasks, managers faced serious obstacles when trying to manage them since they spoke different languages. Early human resource management techniques included social welfare approaches aimed at helping immigrants adjust to their jobs and to life in the United States. These programs assisted immigrants in learning English and obtaining housing and medical care. In addition, these techniques promoted supervisory training in order to increase productivity. While some companies paid attention to the "human" side of employment, however, others did not. Therefore, other factors such as hazardous working conditions and pressure from labor unions also increased the importance of effective management of human resources. Along with the manufacturing efficiencies brought about by industrialization came several shortcomings related to working conditions. These problems included: hazardous tasks, long hours, and unhealthy work environments. The direct cause of employers seeking better HRM programs was not poor working conditions, but rather the protests and pressures generated by workers and

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organized labor unions. Indeed, labor unions, which had existed as early as 1790 in the United States, became much more powerful during the late 1800s and early 1900s. There were two other particularly important contributing factors to the origination of modem HRM during that period. The first was the industrial welfare movement, which represented a shift in the way that managers viewed employees—from nonhuman resources to human beings. That movement resulted in the creation of medical care and educational facilities. The second factor was Frederick W. Taylor's (1856-1915) Scientific Management, a landmark book that outlined management methods for attaining greater productivity from low-level production workers. The first corporate employment department designed to address employee concerns was created by the B.F. Goodrich Company in 1900. In 1902 National Cash Register formed a similar department to handle worker grievances, wage administration, record keeping, and many other functions that would later be relegated to HRM departments at most large U.S. companies. HRM as a professional discipline was especially bolstered by the passage of the Wagner Act in 1935 (also known as the National Labor Relations Act), which remained the basic U.S. labor law through the 1990s. It augmented the power of labor unions and increased the role and importance of personnel managers. During the 1930s and 1940s the general focus of HRM changed from a focus on worker efficiency and skills to employee satisfaction. That shift became especially pronounced after World War II, when a shortage of skilled labor forced companies to pay more attention to workers' needs. Employers, influenced by the famous Hawthorne productivity studies and similar

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Changing workforce values. growth of service and white-collar jobs. 5 . the Civil Rights Act of 1964. and new federal and state regulations. Furthermore. and the Occupational Safety and Health Act of 1970. more women in the workforce. during the 1970s. corporate restructuring (including reductions in middle management). Shifting demographics forced changes in the way workers were hired.research. By the end of the 1970s. training. such as the Equal Pay Act of 1963. for example. companies began placing greater emphasis on HRM in order to avoid lawsuits for violating this legislation. the Employee Retirement Income Security Act of 1974 (ERISA). required the skills of HRM professionals to adapt organizational structures to a new generation of workers with different attitudes about authority and conformity. These regulations created an entirely new legal role for HRM professionals. slower domestic market growth. virtually all medium-sized and large companies and institutions had some type of HRM program in place to handle recruitment. greater international competition. dismissal. Because of these acts. In the 1960s and 1970s the federal government furthered the HRM movement with a battery of regulations created to enforce fair treatment of workers. HRM gained status as a recognized profession with the advent of human resource programs in colleges. HRM's importance continued to grow during the 1980s for several reasons. and other related issues. fired. Other factors contributing to the importance of HRM during the 1980s and 1990s were increasing education levels. and managed. began to emphasize personal development and improved working conditions as a means of motivating employees. regulatory compliance.

Second is that employees are resources who can learn new skills and ideas and can be trained to occupy new positions in the organization? Third is that quality of work life is a legitimate concern. HRM refers to the management of all decisions within an organization that are related to people. HRM is a tool used to try to make optimum use of human resources. writing in Human Resource Development. and to comply with government mandates. In practice.In fact. clean. talents and skills must be continually refined in the long-term interests of the organization. and pleasant surroundings. which implies that humans have a right to be satisfied by their work and that employers have a responsibility and profit motivation 6 . for a company to attain its goals. financial resources. suggesting that companies recognize and value individual contributions. it must have employees who will help it attain them. to foster individual development. Sixth is employee satisfaction. Larger organizations typically have an HRM department and its primary objective is making company goals compatible with employee goals insofar as possible. including cash. A fifth assumption supporting the existence of an organized HRM within a company or institution is that opportunities are constantly changing and companies need methods to facilitate continual worker adaptation. In its broadest sense. A fourth assumption is the need for continuous learning. Towards this end. such as materials and equipment. credit. and debt. businesses and organizations rely on three major resources: physical resources. Hence. and that employees have a right to safe. and human resources or workers. identifies seven underlying assumptions that provide a foundation and direction for HRM. Wayne Pace. First is the acknowledgment of individual worth. however. R.

managerial control. The seventh and final assumption is that HRM encompasses a much broader scope than technical training—employees need to know more than the requirements of a specific task in order to make their maximum contribution. positioning. II)THE ROLE OF HRM IN INDUSTRIAL ORGANISATIONS: In Personnel Management.to try to match a worker's skills with his or her job. training. The third 7 . and maintenance of human resources. and structure of most HRM divisions. and group relationships. and decision areas. compensation. and then make their best contribution to the enterprise. can be classified by individual. leadership. organization theory. and other. Human relations encompass matters such as individual motivation. resources. HRM department responsibilities. other than related legal and clerical duties. and testing. This important duty also includes the creation and maintenance of a change program. and career areas. and work flow through the organization. These duties are carried out through a variety of activities such as performance reviews. Organization theory refers to job design. organizational. Individual management entails helping employees identify their strengths and weaknesses. Kohl describe three distinct. Although the method and degree to which those areas of interest are handled vary among different HRM departments. Decision areas encompass interests related to the acquisition. which allows the organization to respond to evolving outside and internal influences. Organizational development focuses on fostering a successful system that maximizes human. development. a few general rules characterize the responsibilities. Green law and John P. Paul S. interrelated fields of interest addressed by the HRM discipline: human relations. correct their shortcomings.

serves all divisions of the organization. engineering. marketing. and service firms) organize HRM employee development functions around various clusters of workers—they conduct recruiting. But many large organizations (including governments. and train the workforce. manufacturing companies. with maximum access to all divisions and management levels. the HRM department should be situated in such a way that it has horizontal access. The structure of HRM departments differs according to the type and size of the organization that they serve. because the HRM department is charged with managing the productivity and development of workers at all levels. involves matching individuals with the most suitable jobs and career paths. institutions. some HRM departments are completely independent and are organized purely by function. The same training department. such as sales. educate. and the support of. key decision makers. the top HRM manager ideally has access to. administrative. and to facilitate changes that affect one division and indirectly influence other segments of the company or institution.responsibility. career development. In addition. In any case. Horizontal access allows HRM to integrate. or is able to communicate effectively with all divisions within the company. iii)HRM FUNCTIONS: 8 . In larger organizations the HRM function might be headed by a vice president. for example. In contrast. or executive education. while smaller entities will have a middle-level manager as head of HRM. The positioning of HRM departments is ideally near the theoretic organizational center. and other duties in a central location. Different employee development groups for each department are necessary to train and develop employees in specialized areas.

which includes activities related to analyzing employment needs. and forecasting future employment levels and skill requirements. 3. such as designing evaluation tests and interview methods. a) ACQUISITION: Acquisition duties consist of human resource planning for employees. Preventing a high turnover rate among younger recruits. Making it possible for financial resource managers to efficiently plan departmental budgets. identifying job and industry trends. which can reduce unnecessary employment costs and liabilities and increase employee morale that would otherwise suffer in the event of lay-offs. building skill inventories. statistical analysis. HRM professionals and departments engage in a variety of activities in order to execute their human resource plans. 2. each of which includes related legal responsibilities: acquisition.To fulfill their basic role and achieve their goals. Ideally. determining the necessary skills for positions. interviews. 4. These tasks may be accomplished using such tools and techniques as questionnaires. 9 . development. Sustaining stable workforce levels during ups and downs in output. compensation. HRM implementation activities fall into four functional groups. Four specific goals of effective human resource planning are: 1. The acquisition function also encompasses activities related to recruiting workers. and maintenance. and designing career path charts. Reducing problems associated with replacing key decision makers in the event of an unexpected absence.

depending on the type and extent of different programs. train managers to administer the appraisals. for example.the chief goal is to hire the most-qualified candidates without encroaching on federal regulations or allowing decision makers to be influenced by unrelated stereotypes. Recruitment responsibilities also include ensuring that the people in the organization are honest and adhere to strict government regulations pertaining to discrimination and privacy. To that end. In 10 . refers to performance appraisal and training activities. are usually necessary to acclimate new hires to the company. Training and development activities include the determination. correct weaknesses. b)DEVELOPMENT: The second major HRM function. or to test potential candidates for drug use. and analysis of educational programs. HRM departments at some companies may choose to administer honesty or personality tests. The basic goal of appraisal is to provide feedback to employees concerning their performance. Orientation programs. This feedback allows them to evaluate the appropriateness of their behavior in the eyes of their coworkers and managers. develop review techniques. execution. design. HRM professionals must devise uniform appraisal standards. and then evaluate and follow up on the effectiveness of performance reviews. and improve their contribution. The HRM training and education role may encompass a wide variety of tasks. human resource development. They must also tie the appraisal process into compensation and incentive strategies. human resource managers establish and document detailed recruiting and hiring procedures that protect applicants and diminish the risk of lawsuits. and work to ensure that federal regulations are observed.

job rotation. safety and health. effective HRM managers also design programs that reward employees by meeting their emotional needs. and motivation. Ultimately. d)MAINTENANCE: The fourth principal HRM function.any case. c) COMPENSATION: Compensation. their aim is to establish wage and salary levels that maximize the company's investment in relation to its goals. maintenance of human resources. satisfaction. HRM managers must learn how to create compensation equity within the organization that doesn't hamper morale and that provides sufficient financial motivation. HRM professionals are typically charged with developing wage and salary systems that accomplish specific organizational objectives. This is often successfully accomplished with performance based incentives. such as employee retention. and must carefully design effective training and development programs that benefit the overall organization as well as the individual. encompasses HRM activities related to employee benefits. In particular. Training initiatives may include apprenticeship. internship. and new skills programs. the third major HRM function. refers to HRM duties related to paying employees and providing incentives for them. Besides financial compensation and fringe benefits. the HRM professional ideally is aware of the fundamentals of learning and motivation. such as recognition for good work. mentoring. Employee benefits are non-incentive- 11 . quality. and worker-management relations.

such as purchasing plans. and are often used to transfer nontaxed compensation to employees. They are also typically charged with designing detailed procedures to document and handle injuries. HRM managers must work to minimize the company's exposure to risk by implementing preventive safety and training programs. IV)HRM TRENDS: 12 . Regulations emanate from the federal Occupational Safety and Health Administration. and legal services. and health benefits. HRM professionals need to understand tax incentives. and devising systems to foster cooperation. vacations. Human resource maintenance activities related to safety and health usually entail compliance with federal laws that protect employees from hazards in the workplace. developing policies to accept and handle worker grievances. and insurance. recreational activities. and purchasing power derived from a large base of employees. The three major categories of benefits managed by HRM managers are: employee services.oriented compensation. and from state workers' compensation and federal Environmental Protection Agency laws. Activities in this arena include contract negotiation. Maintenance tasks related to worker-management relations primarily entail: working with labor unions. holidays. retirement investment plans. To successfully administer a benefits program. for instance. retirement. such as health insurance and free parking. and other allowed absences. handling grievances related to misconduct such as theft or sexual harassment. and administering programs to enhance communication and cooperation.

decentralized management systems. which required human resource strategies that contrasted with those applicable to full time workers. HRM professionals. computers and networking systems. since these technologies helped blur the lines between work time and personal time by enabling employees to work at home. Moreover. often at diminished levels of compensation. or contract. A second important change affecting HRM was new organizational structures that began to emerge during the 1980s and continued through the 1990s. A third change factor was accelerating market globalization. were charged with reorganizing workers and increasing their efficiency. the central decision-making system failed to respond quickly enough to managers' needs and concerns. To compete abroad. as the agents of change. Satellite communications. new technologies—particularly information technology— brought about the decentralization of communications and the shake-up of existing paradigms of human interaction and organizational theory. and other devices were facilitating rapid change. Consequently. which was increasing competition and demanding greater performance out of workers. companies started scrapping traditional.In the 1990s several forces were shaping the broad field of HRM. hierarchical organizational structures in favor of flatter. employees. Because many companies began expanding their operations and diversifying their products and services. The first key force. fewer managers were involved in the decision-making process and companies were adopting more of a team approach to management. Therefore. These efforts also resulted in the proliferation of part-time. HRM professionals began adopting "management by objective" approaches to human resources instead of the traditional "management by sight" method. fax machines. companies 13 .

The focus of the performance appraisal is measuring and improving the actual performance of the employee and also the future potential of the employee. and innovation. periodic and an impartial rating of an employee’s excellence in the matters pertaining to his present job and his potential for a better job”. analyzing and recording information about the relative worth of an employee. productivity. Its aim is to measure what an employee does. goes By focusing the attention on performance. performance appraisal to the heart of personnel management and reflects the management's interest in the progress of the employees.B. It helps to analyze his achievements and evaluate his contribution towards the achievements of the overall organizational goals. Performance appraisal is a systematic way of reviewing and assessing the performance of an employee during a given period of time and 14 . "performance appraisal is the systematic. refine and reward the performance of the employee.were looking to their HRM professionals to augment initiatives related to quality.FLIPO PAS means “A prominent personality in the field of Human resources. It is a powerful tool to calibrate. DEFINITION: According to A. V)Performance Appraisal System – A Theoretical Framework: Performance appraisal is the process of obtaining.

• To judge the gap between the actual and the desired performance. • To diagnose the strengths and weaknesses of the individuals so as to identify the training and development needs of the future. • Provide information to assist in the other personal decisions in the organization. VI)Objectives Of Performance appraisal: • To review the performance of the employees over a given period of time. • To provide feedback to the employees regarding their past performance. training and 15 . selection.planning for his future. Helps to strengthen the relationship and communication between superior – subordinates and management – employees. • To judge the effectiveness of the other human resource functions of the organization such as recruitment. • • To help the management in exercising organizational control. • Provide clarity of the expectations and responsibilities of the functions to be performed by the employees.

Accurate and efficient performance measurement not only forms the basis of an accurate performance review but also gives way to judging and measuring employee potential. the costs involved and the time taken in achieving the results. Measuring the performance covers the evaluation of the main tasks completed and the accomplishments of the employee in a given time period in comparison with the goals set at the beginning of the period. peers. • To reduce the grievances of the employees. For the purpose of measuring employee performance. customers. Measuring also encompasses the quality of the accomplishments. VII)Measuring An Employee’s Performance: The most difficult part of the performance appraisal process is to accurately and objectively measure the employee performance. All the perspectives thus received should be combined in the appropriate manner and to get an overall. the compliance with the desired standards. different input forms can be used for taking the feedback from the various sources like the superior. Measuring employee performance is the basis of the Performance appraisal processes and performance management. Observation can also be exercised by the superior to obtain information. vendors and the employee himself.development. Some suggestions and tips for measuring employee performance are: 16 . complete view of the employees’ performance.

it is very important to monitor or measure its’ and its employee performance on a regular basis.• Clearly define and develop the employee plans of action (performance) with their role. • If possible. collect the feedback about the performance of the employees through multi-point feedback and self-assessments. Measuring the performance of the employees based only on one or some factors can provide with inaccurate results and leave a bad impression on the employees as well as the organization. duties and responsibilities. • Financial measures like the return on investment. Effective monitoring and measuring also includes providing timely feedback and reviews to employees for their work and performance according to the pre-determined goals and standards and solving the problems faced. • • Focus on accomplishments and results rather than on activities. Also take note of the skills. Timely recognition of the accomplishments also motivates the employees and help to improve the performance. the market share. an organization might rate most of its 17 . For example: By measuring only the activities in employee’s performance. For an organization to be an effective organization and to achieve its goals. the profit generated by the performance of the team should also be considered. • Organizational outcomes or the achievement of organizational goals should also be kept in mind. knowledge and competencies and behaviors of the employees that help the organization to achieve its goals.

This step requires setting the criteria to judge the performance of the employees as successful or unsuccessful and the degrees of their contribution to the organizational goals and objectives. The standards set should be clear.employees as outstanding. easily understandable and in measurable terms. 18 . a balanced set of measures (commonly known as balanced scorecard) should be used for measuring the performance of the employee. ESTABLISHING PERFORMANCE STANDARDS: The first step in the process of performance appraisal is the setting up of the standards which will be used to as the base to compare the actual performance of the employees. it is the responsibility of the management to communicate the standards to all the employees of the organization. 2. The standards should also be communicated to the appraisers or the evaluators and if required. even when the organization as a whole might have failed to meet its goals and objectives. the standards can also be modified at this stage itself according to the relevant feedback from the employees or the evaluators. The employees should be informed and the standards should be clearly explained to the. This will help them to understand their roles and to know what exactly is expected from them. In case the performance of the employee cannot be measured. Therefore. COMMUNICATING THE STANDARDS: Once set. great care should be taken to describe the standards. VIII)Process of Performance Appraisal 1.

This stage requires the careful selection of the appropriate techniques of measurement. The comparison tells the deviations in the performance of the employees from the standards set. taking care that personal bias does not affect the outcome of the process and providing assistance rather than interfering in an employees work.3. evaluating and analysis of data related to the employees’ performance. MEASURING THE ACTUAL PERFORMANCE The most difficult part of the Performance appraisal process is measuring the actual performance of the employees that is the work done by the employees during the specified period of time. It includes recalling. THE ACTUAL WITH THE DESIRED 19 . 4. It is a continuous process which involves monitoring the performance throughout the year. the actual performance being less than the desired performance depicting a negative deviation in the organizational performance. COMPARING PERFORMANCE The actual performance is compared with the desired or the standard performance. The result can show the actual performance being more than the desired performance or.

The purpose of the meeting should be to solve the problems faced and motivate the employees to perform better. the problems and the possible solutions are discussed with the aim of problem solving and reaching consensus. DISCUSSING RESULTS The result of the appraisal is communicated and discussed with the employees on one-to-one basis. The feedback should be given with a positive attitude as this can have an effect on the employees’ future performance. 20 .5. The results. The focus of this discussion is on communication and listening.

take the required corrective actions. 7. f) Communication – Communication is an indispensable part of the Performance appraisal process. the appraisal system should be performance based and uniform. b) Standards / Goals – the standards set should be clear. transfers etc. clear. or the related HR decisions like rewards. motivating. Long and complicated formats are time consuming. time bound and measurable. The criteria for evaluation should be based on observable and measurable characteristics of the behavior of the employee. The desired behavior or the expected results should be communicated to the employees as well as the evaluators. It also helps the evaluators to give a proof and the basis of their ratings.Pre-requisites for Effective & Successful Performance Appraisal The essentials of an effective performance system are as follows: a) Documentation – means continuous noting and documenting the performance. demotions. and do not elicit much useful information. easy to understand. e) Evaluation technique – An appropriate evaluation technique should be selected.6. Communication also plays an important role in the review or feedback 21 . achievable. fair and objective. c) Practical and simple format .The appraisal format should be simple. DECISION MAKING The last step of the process is to take decisions which can be taken either to improve the performance of the employees. promotions. difficult to understand.

To maintain its utility.meeting. g) Feedback – The purpose of the feedback should be developmental rather than judgmental. the criteria selected should be in quantifiable or measurable terms A) Create a rating instrument 22 . j) Personal Bias – Interpersonal relationships can influence the evaluation and the decisions in the performance appraisal process. Open communication system motivates the employees to actively participate in the appraisal process. For the purpose of evaluation. the evaluators should be trained to carry out the processes of appraisals without personal bias and effectively IX) Challenges of Performance Appraisal An organization comes across various problems and challenges Of Performance Appraisal in order to make a performance appraisal system effective and successful. timely feedback should be provided to the employees and the manner of giving feedback should be such that it should have a motivating effect on the employees’ future performance. Therefore. The main Performance Appraisal challenges involved in the performance appraisal process are: • Determining the evaluation criteria Identification of the appraisal criteria is one of the biggest problems faced by the top management. The performance data to be considered for evaluation should be carefully selected.

may creep in the appraisal process. Therefore. D) RESISTANCE The appraisal process may face resistance from the employees and the trade unions for the fear of negative ratings. C) ERRORS IN RATING AND EVALUATION Many errors based on the personal bias like stereotyping. They should have the experience and the necessary training to carry out the appraisal process objectively. 23 . the employees should be communicated and clearly explained the purpose as well the process of appraisal. B) LACK OF COMPETENCE Top management should choose the raters or the evaluators carefully. They should have the required expertise and the knowledge to decide the criteria accurately. one trait influencing the evaluator’s rating for all other traits) etc. halo effect (i. The focus of the system should be on the development of the employees of the organization. Therefore the rater should exercise objectivity and fairness in evaluating and rating the performance of the employees.e. The standards should be clearly communicated and every employee should be made aware that what exactly is expected from him/her.The purpose of the Performance appraisal process is to judge the performance of the employees rather than the employee.

Typically. Performance Appraisal is aimed at: • To review the performance of the employees over a given period of time. training and development. Self-appraisal and potential appraisal also form a part of the performance appraisal processes. • Provide clarity of the expectations and responsibilities of the functions to be performed by the employees. • • To reduce the grievances of the employees. • To judge the effectiveness of the other human resource functions of the organization such as recruitment. • To diagnose the training and development needs of the future • Provide information to assist in the HR decisions like promotions. • To help the management in exercising organizational control. 24 . • To judge the gap between the actual and the desired performance. Helps to strengthen the relationship and communication between superior – subordinates and management – employees. transfers etc.X)Purpose of Performance Appraisal Performance Appraisal is being practiced in 90% of the organizations worldwide. selection.

promotions. helps to identify the hidden talents and potential of the individuals. a part of Performance appraisal.XI)Performance Appraisals as Career Development Performance appraisal is a part of career development. achieve new levels of competencies and chart their career progression. The latest mantra being followed by organizations across the world being – "get paid according to what you contribute" – the focus of the organizations is turning to performance management and specifically to individual performance. Performance appraisal helps to rate the performance of the employees and evaluate their contribution towards the organizational goals. It plays the role of the link between the organization and the employees’ personal career goals. Potential appraisal. The performance appraisal process in itself is developmental in nature. employees can develop their career goals. XII) Approaches to Performance Development 25 . Performance appraisal encourages employees to reinforce their strengths and overcome their weaknesses. A feedback communicated in a positive manner goes a long way to motivate the employees and helps to identify individual career developmental plans. Performance appraisal is also closely linked to other HR processes like helps to identify the training and development needs. Performance appraisal as Career Development leads to the recognition of the work done by the employees. changes in the compensation etc. Identifying these potential talents can help in preparing the individuals for higher responsibilities and positions in the future. Based on the evaluation. many a times by the means of rewards and appreciation etc. demotions.

the performance appraisal is taken as a tool to identify better performing employees from others. performance appraisal has been used as just a method for determining and justifying the salaries of the employees. employees’ training needs. during a past specified period of time. transfers. B)Performance appraisal . career development paths.e.Modern approach The modern approach to performance development has made the performance appraisal process more formal and structured. this approach is also called as the overall approach. This approach was a past oriented approach which focused only on the past performance of the employees i. This approach did not consider the developmental aspects of the employee performance i. The primary concern of the traditional approach is to judge the performance of the organization as a whole by the past performances of its employees. demotions. his training and development needs or career developmental possibilities. Appraisals have become a continuous and periodic activity in the organizations. Therefore.e. rewards and bonuses and their promotions to the next levels. Than it began to be used a tool for determining rewards (a rise in the pay) and punishments (a cut in the pay) for the past performance of the employees. training and 26 . In 1950s the performance appraisal was recognized as a complete system in itself and the Modern Approach to performance appraisal was developed. Now. The results of performance appraisals are used to take various other HR decisions like promotions.Traditional approach Traditionally.A) Performance appraisal .

development. The modern approach to performance appraisals includes a feedback process that helps to strengthen the relationships between superiors and subordinates and improve communication throughout the organization. 27 . reward outcomes. as shown in Figure below. This recognizes employ XIII)Methods of Performance Appraisal The performance appraisal methods may be classified into three categories. The modern approach to Performance appraisal is a future oriented approach and is developmental in nature.

Figure: Performance Appraisal Methods

Traditional Methods of Performance Appraisal: 1. EASAY APPRAISAL METHOD This traditional form of appraisal, also known as "Free Form method" involves a description of the performance of an employee by his superior. The description is an evaluation of the performance of any individual based on the facts and often includes examples and evidences to support the information. A major drawback of the method is the inseparability of the bias of the evaluator.

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2. STRAIGHT RANKING METHOD This is one of the oldest and simplest techniques of performance appraisal. In this method, the appraiser ranks the employees from the best to the poorest on the basis of their overall performance. It is quite useful for a comparative evaluation. 3. PAIRED COMPARISON A better technique of comparison than the straight ranking method, this method compares each employee with all others in the group, one at a time. After all the comparisons on the basis of the overall comparisons, the employees are given the final rankings. 4. CRITICAL INCIDENTS METHODS In this method of Performance appraisal, the evaluator rates the employee on the basis of critical events and how the employee behaved during those incidents. It includes both negative and positive points. The drawback of this method is that the supervisor has to note down the critical incidents and the employee behaviour as and when they occur. 5. FIELD REVIEW In this method, a senior member of the HR department or a training officer discusses and interviews the supervisors to evaluate and rate their respective subordinates. A major drawback of this method is that it is a very time consuming method. But this method helps to reduce the superiors’ personal bias.

6. CHECKLIST METHOD The rater is given a checklist of the descriptions of the behaviour of the

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employees on job. The checklist contains a list of statements on the basis of which the rater describes the on the job performance of the employees.

7. GRAPHIC RATING SCALE In this method, an employee’s quality and quantity of work is assessed in a graphic scale indicating different degrees of a particular trait. The factors taken into consideration include both the personal characteristics and characteristics related to the on the job performance of the employees. For example a trait like Job Knowledge may be judged on the range of average, above average, outstanding or unsatisfactory.

8. FORCED DISTRIBUTION To eliminate the element of bias from the rater’s ratings, the evaluator is asked to distribute the employees in some fixed categories of ratings like on a normal distribution curve. The rater chooses the appropriate fit for the categories on his own discretion.

XIV)Modern Methods of Performance Appraisal 1. ASSESSMENT CENTRES :

An

assessment

centre

typically

involves

the

use

of

methods

like

social/informal events, tests and exercises, assignments being given to a group of employees to assess their competencies to take higher

responsibilities in the future. Generally, employees are given an assignment similar to the job they would be expected to perform if promoted. The trained evaluators observe and evaluate employees as they perform the assigned

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jobs and are evaluated on job related characteristics. The major competencies that are judged in assessment centres are interpersonal skills, intellectual capability, planning and organizing

capabilities, motivation, career orientation etc. assessment centres are also an effective way to determine the training and development needs of the targeted employees. 2. BEHAVIORALLY ANCHORED RATING SCALES

Behaviorally Anchored Rating Scales (BARS) is a relatively new technique which combines the graphic rating scale and critical incidents method. It consists of predetermined critical areas of job performance or sets of behavioral statements describing important job performance qualities as good or bad (for eg. the qualities like inter personal relationships, adaptability and reliability, job knowledge etc). These statements are developed from critical incidents.

In this method, an employee’s actual job behavior is judged against the desired behavior by recording and comparing the behavior with BARS. Developing and practicing BARS requires expert knowledge.

3. HUMAN RESOURCE ACCOUNTING METHOD

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Self 2. superior). 4. The cost of employees include all the expenses incurred on them like their compensation. 360 degree respondents for an employee can be his/her peers. Human resource accounting method tries to find the relative worth of these assets in the terms of money. Ideally. induction and training costs etc whereas their contribution includes the total value added (in monetary terms).e. The difference between the cost and the contribution will be the performance of the employees. 360-Degree-Performance-Appraisals 360 degree feedback. subordinates. also known as 'multi-rater feedback'. A)360 degree appraisal has four integral components 1. suppliers/ vendors anyone who comes into contact with the employee and can provide valuable insights and information or feedback regarding the "on-the-job" performance of the employee. customers.Human resources are valuable assets for every organization. managers (i. the contribution of the employees should be greater than the cost incurred on them. In this method the Performance appraisal of the employees is judged in terms of cost and contribution of the employees. team members. is the most comprehensive appraisal where the feedback about the employees’ performance comes from all the sources that come in contact with the employee on his job. recruitment and selection costs.Superior’s 32 .

Peer Self appraisal gives a chance to the employee to look at his/her strengths and weaknesses. co-operation and sensitivity towards others.Subordinate’s 4. leadership qualities etc. Superior’s appraisal forms the traditional part of the 360 degree performance appraisal where the employees’ responsibilities and actual performance is rated by the superior. Also known as internal customers. 33 . the correct feedback given by peers can help to find employees’ abilities to work in a team. and judge his own performance.3. Subordinates appraisal gives a chance to judge the employee on the parameters like communication and motivating abilities. his achievements. superior’s ability to delegate the work.

choosing course of actions and decision making. This technique is being effectively used across the globe for performance appraisals. A 360 degree appraisal is generally found more suitable for the managers as it helps to assess their leadership and managing styles. 34 . Infosys. the employees set their goals to be achieved. Some of the organizations following it are Wipro.Self assessment is an indispensable part of 360 degree appraisals and therefore 360 degree Performance appraisal have high employee involvement and also have the strongest impact on behavior and performance. the standards to be taken as the criteria for measurement of their performance and contribution and deciding the course of action to be followed. 360 degree performance appraisal is also a powerful developmental tool because when conducted at regular intervals (say yearly) it helps to keep a track of the changes others’ perceptions about the employees. and Reliance Industries etc. An important part of the MBO is the measurement and the comparison of the employee’s actual performance with the standards set. they are more likely to fulfill their responsibilities. Ideally. The essence of MBO is participative goal setting. when employees themselves have been involved with the goal setting and the choosing the course of action to be followed by them. It provides a "360-degree review" of the employees’ performance and is considered to be one of the most credible performance appraisal methods. It can be defined as a process whereby the employees and the superiors come together to identify common goals. Management By Objectives The concept of ‘Management by Objectives’ (MBO) was first given by Peter Ducker in 1954. 1.

A)THE MBO PROCESS: B)UNIQUE FEATURES AND ADVANTAGES OF MBO The principle behind Management by Objectives (MBO) is to create 35 .

came the concept of SMART goals i.e. The goals thus set are clear. Goals and standards are set for the performance for the future with periodic reviews and feedback.empowered employees who have clarity of the roles and responsibilities expected from them. Some of the important features and advantages of MBO are: • Clarity of goals – With MBO. Better communication and Coordination – Frequent reviews and interactions between superiors and subordinates helps to maintain    36 . goals that are: • • • • • Specific Measurable Achievable Realistic Time bound. motivating and there is a linkage between organizational goals and performance targets of the employees. understand their objectives to be achieved and thus help in the achievement of organizational as well as personal goals. Motivation – Involving employees in the whole process of goal setting and increasing employee empowerment increases employee job satisfaction and commitment. The focus is on future rather than on past.

the conventional approach measures the performance only on a few parameters like the action processes. achievements and financial measures. 37 .harmonious relationships within the enterprise and also solve many problems faced during the period. The balanced scorecard provides a list of measures that balance the organizations internal and process measures with results. Balanced scorecard focuses on the measures that drive performance. The Balanced scorecard – an approach given by Kaplan and Norton provides a framework of various measures to ensure the complete and balanced view of the performance of the employees. achievements and financial measures. Balanced Scorecard To evaluate the organizational and employee performance in Performance appraisal management processes. The balanced scorecard provides a list of measures that balance the organizations internal and process measures with results. Balanced scorecard focuses on the measures that drive performance. 6. To evaluate the organizational and employee performance in Performance appraisal management processes. the conventional approach measures the performance only on a few parameters like the action processes. results achieved or the financial measures etc. The Balanced scorecard – an approach given by Kaplan and Norton provides a framework of various measures to ensure the complete and balanced view of the performance of the employees. results achieved or the financial measures etc.

b) The customers’ measures . the long term and short term goals and objectives. The data can be collected from the frequency and number of customer complaints.These measures help to get on customer satisfaction. return on investments and other economic measures as a result of the actions taken. c) The internal business measures – These are the measures related to the organization’s internal processes which help to achieve the customer satisfaction. customer loyalty. It includes the infrastructure. the time taken to deliver the products and services. organizational 38 . improvement in quality etc. acquiring new customers. increase in the market share. the customer’s perspective about the organization. the four perspectives of balanced scorecard • Linking the measures to Employee Performance The four Perspectives recommended by Kaplan and Norton for the managers to collect information are: a) The financial measures – The financial measures include the results like profits.The two basic features of the balanced scorecard are: • A balanced set of measures based on.

..The innovation and learning measures cover the organization’s ability to learn... Quantity of work: Unsatisfa Volume under of work ctory normal F a ir Satis facto ry G Outstanding o o d Job title.... innovate and improve......... a printed form. Graphic rating scale: Perhaps the most commonly used method of performance evaluation is the graphic rating scale......... it is also one of the oldest methods of evaluation in use. Data..processes and procedures.. A variety of traits may be used in these types of rating devices. Table: Typical Graphic Rating Scale Employee Name.... Rate.. working conditions 39 ... Of course............. Under this method.. They can be judged by employee skills matrix. as shown below.... the most common being the quantity and quality of work............. Department.. key competencies.... 7........... is used to evaluate the performance of an employee............. systems and the human resources....... d) The innovation and learning perspective ...... value added and the revenue per employee..........

thoroughness accuracy of and work Knowledge of job A understanding the clear of factors connected with the job Attitude: enthusiasm Exhibits and cooperativeness on the job Dependability: Conscientious. etc. reliefs. 40 . respect with to attendance. Cooperation: Willingness and ability to work with others to produce desired goals. lunch breaks. accurate. thorough.Quality of work: Neatness. reliable.

if the employee has serious gaps in technical-professional knowledge (knows only rudimentary phases of job). For instance. fails to plan ahead effectively. is reluctant to make decisions on his own (on even when he makes decisions they are unreliable and substandard). excerpts can be obtained about the performance standards of employees.e.. i. When ratings are objective in nature they can be effectively used as evaluators. it may be arbitrary and the rating may be subjective. The graphic rating scale may however suffer from a long standing disadvantage. easy to use and permits a statistical tabulation of scores of employees. The rating scale is the most common method of evaluation of an employee’s performance today. wastes and misuses resources. One positive point in favor of the rating scale is that it is easy to understand.From the graphic rating scales. 8)Performance Appraisal Feedback Performance appraisal process is incomplete without the feedback given to the employee about his appraisal and his performance. etc. declines to accept responsibility.. Another pitfall is that each characteristic is equally important in evaluation of the employee’s performance and so on. lacks the knowledge to bring about an increase in productivity. then it can safely be inferred that the standards of the performance of the employee are dismal and disappointing. But the way of giving as well as receiving the feedback differs from person 41 .

Don’t judge the appraiser as a person. Should have a co-operative attitude during the feedback meeting. ○ He should not hesitate to ask for the help of his superiors. ○ ○ ○ On the part of the appraiser or the manager / person giving the feedback. According to a popular saying: "A SUCCESSFUL MAN IS ONE WHO CAN LAY A FIRM FOUNDATION WITH THE BRICKS OTHERS HAVE THROWN AT HIM. the following points are to be taken care of: ○ The appraiser should make the receiver feel comfortable during the feedback meeting. On the part of the person receiving the feedback. ○ The appraiser should make it a two – way conversation i." Therefore.e. 42 . the following points are important to be taken care of: ○ The employee should have a positive attitude towards the feedback process ○ He should listen to the suggestions of the appraiser calmly and try to incorporate them in his plans. Should take the feedback objectively. let the employee speak.to person and their way of handling and their outlook towards the issue.

Be fair and objective ○ ○ Make the appraisal feedback meeting useful and productive for the organization and the employee. The appraiser should not adopt a confrontational approach towards the meeting. suggestions. 43 .○ Listen to the employee and note his points. ○ ○ Provide a constructive feedback to the employee i.e. problems etc. The goal is not to criticize the employee. in a way which will motivate him to perform better. ○ Have a positive attitude towards the process Try to understand the reasons of his failure.

CHAPTER-II OBJECTIVES AND METHODOLOGY 1)SCOPE OF THE STUDY: 44 .

3)METHODOLOGY:Methodology is a systematic procedure of collecting information 45 . training and development. transfer. To give suitable suggestions regarding performance appraisal measures to the company. layoff and retrenching. To know opinions of employees about performance appraisal measures. 2. The Indian institute of personnel management has specified the scope of H.R. selection. recruitment.R function in recent years. productivity. 3. promotion. placement. To know the various performance appraisal methods provided in the company.The scope of H.M is very wide research in behavioral sciences. etc. new trends in managing knowledge workers and advances in the field of training have expanded the scope of H. 4.M thus: Personnel aspect: this is concerned with manpower planning.R. incentives. remuneration. To study whether the employees are satisfy about their performance appraisal methods. 2)OBJECTIVES OF THE STUDY: 1.

A)DATA COLLECTION: Data is collected through two sources. Findings for each diagram were written and suggestions were offered at the end of the report. To entire study is based on both the primary data and the secondary data.in order to analyses and verifies a phenomenon. Secondary Data:Secondary data is collected from company broachers. The data was analyzed with the help of tables and bar charts. 4)SAMPLING METHOD: The lanco has been selected as the sample organization for 46 . records and manuals. They are 1. Primary Data:Primary data is collected from the selected sample employees (50) by using structured questionnaire which consists of 15 open ended questions. 2.

It is also expected that the selected organization would have an efficient recruitment and selection. 7)LIMITATIONS OF THE STUDY: The following are the limitations. Among the total population in the organization the respondents were selected randomly. which are faced while carrying on the survey in regard to performance appraisal facilities. which is labour intensive. 47 .this case study because it is private sector organization. 5)SAMPLE SIZE: The respondent under study was selected through the simple random sampling technique. Random sampling method used for this study. In fact the size of the sample was 50 employees out of the total strength. 6)SAMPLE LIST: For the purpose of this a sample list was prepared in consultation with faculty members and HR managers workings in the Genting Lanco kondapalli power plant.

1. “Confidentiality” matter restricts for an in depth study. 4. The scope of this limited to “LKPPL”. 3. 48 . Some workers give only basic information. Limited period of 6 weeks is not sufficient to carry out the project 2.

CHAPTER – III GENTING LANCO POWER(INDIA)PRIVATE LIMITED PROFILE Genting Lanco Power(india) Pvt Ltd Profile 49 .

The group is renowned for its strong management leadership.53 billion. Property development. Plantations. The operating revenue for the group for the year 2007 is US $1. Oil and Gas.Genting Lanco Power (India) Private Limited is a subsidiary of Genting group of companies based at Kuala Lumpur. Paper & Packaging. Kondapalli IDA. and Krishna Distric Lanco Group Profile 50 . Genting group has its presence in diversified fields like Power. Genting group is Malaysia’s leading multinational corporation and one of Asia’s best-managed companies with over 36. Resorts & Hotels.000 employees globally. Malaysia. Entertainment. Genting Lanco Power (India) Private Limited has its registered office at Lanco Kondapalli Power Plant. financial prudence and sound investment discipline. Cruise liners. who are the owners of the 368 MW gas fired combined cycle power plant at kondapalli. The combined market capitalization of the group is about US $9 billion. Genting Lanco Power (India) Private Limited has entered in to a 15 years Operations and Maintenance Agreement with Lanco Kondapalli Power Private Limited. e Commerce.

manufacturing. Lanco is a well-diversified group with activities like power generation. The group is recognized as a leading player in the Indian economic scenario with operation in USA and UK. Biomass and Wind and an operating capacity of 509 MW. and property development. engineering and construction. LANCO is heading for a capacity of 2500 MW and an asset base of US $ 2. headquartered in Hyderabad. India is one of the leading business houses in South India. 1) HISTORY AND EVOLUTION 51 . It has an asset base of US $ 450 million and a turnover of more than US $ 300 million. Information technology (IT). Manufacturing of Pig Iron & Ductile Iron Spun Pipes and Information Technology. With operational experience in power plants based on Gas. Enable and Enrich partner. Commercial and managerial skills. Property Development. Lanco group is striving to Empower. which is appreciated by its International partners – Commonwealth Development Corporation (ACTIS/Globules) of the United Kingdom. LANCO also has presence in Civil Construction.5 billion by the year 2010. Genting Group of Malaysia and Doosan of Korea. business associates and to be the chosen vehicle for growth for stakeholders and source of inspiration to the society. LANCO’s overall growth is attributed to its technical.LANCO Group.

his avowed mission is to make a difference in public life. To take up other humanitarian activities. He contested the recent elections to the Lower House of Parliament for Vijayawada constituency and won a landslide victory. To encourage fresh talent in the area of sports. Manufacturing to Information Technology. the Group’s activities range from Power Generation. the Group’s capital outlay has touched a whopping US $ 450 million and is recognized as one of the leading players in the infrastructure sector in India. a technocrat-turned industrialist. 2) MEMBER OF PARLIAMENT After one-and-a-half decades of outstanding contribution to the industry. is established in the year 1993 had setup a state-ofthe-art integrated Pig Iron and Cement Plants. L. As a Member of Parliament. Rajagopal chose to enter public life in 2003. which had in fact set the countries modern 52 . To provide basic amenities for the rural poor. Engineering and Construction. 2. Under his dynamic leadership. 3) OBJECTIVES: 1. To develop integrated program for the differently able. Rajagopal. 4) LANCO INDUSTRIES LIMITED: AN ISO 9001 CERTIFIED CO: Lanco industries Ltd. To save arts of historical relevance which are on the verge of extinction? 3. The burning desire to achieve versatility in engineering spawned the magnificent decade –old growth of the present day multifaceted conglomerate that touches the nerve center of the country.The Lanco group of companies was established nurtured and developed by a team of dedicated young technocrats. Established in 1989. is the Chairman of LANCO Group. 5. 4.

is a short gestation Poly fuel based combined cycle power plant. Lanco constructions ltd.5 MW of electricity from waste that meets the substantial part of the power requirement. A) LANCO CONSTRUCTION LTD: This was established in the year 1993 and has executed most demanding and difficult projects in the field of civil and construction engineering. Hanjung (the Korean heavy industries and Construction Company) and the Common Wealth Development Corporation Ltd. The 368. Lanco Kondapalli Power Pvt. The complex has a captive power plant generating 2. Food counters etc are a few projects on the anvil. developing modern construction management methods and by adopting the highest standards of guilty. International shopping malls.144 mw (ISO) power plant has a build. Lanco Kondapalli Power Ltd. B) LANCO PROJECT LTD: Focuses on the immense opportunities in the area of Real Estates. KALAHASTI CASTINGS limited an example of the forward integration of the company established in 1997 located strategically beside the Pig Iron Plant avoiding re-melting and transportation it employs delved process that ensures the highest quality and durability. is a joint venture involving Lanco group.day technological innovations. Ltd. At Lanco diverse dimension of growth is achieved through converging rays of vision creating dimensions.operate -own agreement with the state government. Construction and Property Development. It is Lanco’s timely answer to the nations increasing power needs. LANCO’s venture into power is a natural extension of its core mission. Genting Group of Malaysia. today stand tall and proud as one the leading civil engineering companies by building competencies. The project reflects Lanco’s 53 .

quality relations and attainment of peace and happiness. b)Mission: 1. enable and enrich partners. To empower. Manufacturing and Information Technology. high performance. business and associates. To be the chosen vehicle of growth for the Stakeholders and a source of inspiration for the society. ○ Where capabilities are nurtured and stretched beyond boundaries for new understandings. To be a leader in the field of Infrastructure. ○ Where an employee makes transaction from an old world to a new world. from an old understanding to a desired understanding and from a subordinate to an associate. To be a leader in all areas key to the development of a nation and progress of the world. ○ To become learning organization and enable people to think like geniuses.ability to partner with the global players and achieve inter organization synergies that give its vision great scope and reach. 2. 5) LANCO KONDAPALLI POWER PRIVATE LTD: a)Vision: 1. 2. 54 . ○ Where every associate achieves outstanding results.

sleek. cognitive work. To make association with us an enriching experience to our partners. strategic planning and enduring perseverance to achieve customer satisfaction. c) Philosophy: 1. 4. stakeholder benefits and measurable economic growth for the organization. 5. ○ Where the organization is built.3. To work with honest purpose. Business heads are entrepreneurs 55 . To constantly evolve and seek synergies between the interests of employers and those of employees and to work intelligently towards empowerment of associates. In view of global competition and knowledge explosion infusion in the market place with complex. 6. flexibility. quality and service that are essential for global competition. for speed. delegate authority and don’t interfere “people make the difference 2. ○ Where decision-making is at frontline levels ○ Where decision-making responsibility vests with self-directing teams close to internal and external customers and associates take charge of their own jobs. Assemble best people. we seek to build efficiencies in such an uncertain environment through empowerment of employees. businesses and associates.

ltd in Korea. Its is response to the error that counts. Hyderabad. Genting Group of Malaysia 2. a)LOCATION: The plant is located at Kondapalli industrial development area in Krishna (Dist. team spirit. creativity. Andhra Pradesh 500033.3. (CDC) common wealth development corporation UK 3. Create your luck by hard work 2. 9). Jubilee Hills. Commitment.565. Nearest railway station - Kondapalli railway station 56 . No . Trust + delegation = growth.III. India. d)Success: 1.The registered office is at Lanco house. broad gauge railway line and is approximately 25 km from Vijayawada . efficiency. Phase . (Doosan) Doosan heavy industries and construction co. The plant is connected by road (national high way no.) of Andhra Pradesh. e)Work culture: 1. 6) PROMOTERS AND EQUITY PARTNERS: The power project is promoted by Lanco group of India and is co-promoted by 1. Mistakes are facts of life. Road no – 92.

Nearest airport Access road Source of water Climatic condition - Gannavaram National highway No –9 Krishna river 9-km from the site Tropical hot. Lanco Kondapalli Power Private Limited (LKPPL) is an Independent Power Project (IPP) located at Kondapalli Industrial Developmental Area near Vijayawada in India. Structural and architectural works.Through Road tankers 57 . The plant operates on natural gas as the main fuel and Naphtha. 7)LANCO POWER PLANT /OPERATION AND MAINTENANCE: The project comprise of a combined cycle power plant consisting of two (2) gas turbine generating units.000 million (US $275 million). two heat recovery steam generator and one steam turbine generation unit along with all electrical system. the Plant is a 368.144 MW Combined Cycle Power Project operating on Natural Gas as Primary fuel. Humid. HSD as the alternative fuels Natural gas fuel is being received at site from Tatipaka near Rajahmundry through a pipeline laid down by GAIL Fuel Naphtha fuel -- Received -. Controls and instrumentation.Through dedicated pipeline from HPCL Kondapalli depot. Civil. HSD -.11. set up at a cost of around Rs.

April 2004. Certificate of Environmental management system with ISO 14001 (1996) from LRQA April 2003. Complying to all the legal requirements. 25% Cess Rebate on Water uses by APPCB. 4. 2. 3. A) ENVIRONMENT POLICY: We are committed to achieve satisfaction of interested parties and protect environment by 1. Health & Environment 2002 by Cofederation of Indian Industries. Continual improvement in the environmental performance by minimizing the emission and discharges & prevention of pollution. 2.The Operations & Maintenance of the plant is done by GLPIPL (Genting Lanco Power (India) Private Limited) which is a joint venture of Lanco group Hyderabad and Genting Group of Malaysia. 5. Conservation of natural resources like natural gas and water. 9)AWARDS AND CERTIFICATES: 1. New Delhi. Generation of power by implementation of prudent Eco friendly methods. 3. Leadership and Excellence Award in Safety. Best Environmental Improvement award 2003 FAPCCI. 6. OSHAS 18001 Certified – June 2005. Certificate of Quality Management System with ISO 9001 LRQM. Environmental Excellence Award 2004 by Green-tech Foundation. 7. 4. 58 .

C) OCCUPATIONAL HEALTH & SAFETY (OH&S) POLICY: The Management is committed to maintain high standards of health and safety in the workplace and shall consider OH&S in all its business activities. Provide appropriate and ongoing Information. 1. Enhancing environmental awareness among employee’s contractors and surrounding society. safety and welfare of all employees and comply with all applicable statutes. 3. Provide a safe working place to all of our direct and indirect employees by minimizing Occupational Health & Safety Risks and practicing National Standards. 2. Providing the best policies level of commercial performance for the benefit of all Stake Holders. Monitor and maintain health. to Minimize Risks to Personnel. Plant & Equipment and Maximize plant Availability for Generation of Power. Engineering and Human Resources. B) QUALITY POLICY: We are committed to continually improve the quality of our performance through the application of our Quality policy. 59 . Utilizing Commercial. 1.5. 2. 3. Implementing prudent utility practices and providing Healthy and Excellent Working Environment in all Disciplines of Engineering and Business as documented in the Quality System. Instruction and Training of our direct and indirect employees.

Gaseous emission mgt. Water mgt. F) EFFLUENT DISCHARGED FROM POWER PLANT: Well-developed chemical laboratory to cater the need for monitoring effluent quality as per APPCD Norms. – as issues of green house gases has become prominent in the public. Minimize the effect of soil erosion.Acknowledges importance of maintaining water quality. . 2. Encourage native fauna to develop. 1. Noise minimization policy for equipment. Acoustic linings around gas and steam turbines and boilers. Ongoing trees planting and maintaining theme are the important aspects of environmental management program at LANCO. 2. Help to restore the site to a sustainable system. E) NOISE MANAGEMENT: Efforts to minimize noise mission from equipment and activities. Reduce noise level 4. 3. 5.D) LKPPL’S COMMITMENT TO CLEAN & SAFE ENVIRONMENT: (Green belt Management) Lanco Commitment to re vegetation is 1. Contribute to a reduction in green house gases 3. Silencers have been provided. 60 . 2. 1.

by any Andhra Pradesh based group. Power purchase agreement firmed with AP TRANSCO for 15 years. COMPANY HIGH LIGHTS: 1. 5. 3. 2. adhering to highest standards of safety and conversion of natural resources. 4.3. 61 .144 MW combined cycle power plant under build – operate – own arrangement with the state government. Community participation. Environmental awareness training. Eco – friendly. The single largest investment in Andhra Pradesh. 4. The first project cleared by Central Electricity Authority (CEA) under the international competitive Bidding (ICB) route for power projects in India. 368.

One of the lowest evacuations costs to AP TRANSCO.5 km from fuel storage facility of Hindustan Petroleum Corporation limited. 7. The first of the ICB power projects in India to achieve financial closure and complete construction in shortest possible time. 9. The first private sector power project to receive disbursement of finance from Power Finance Corporation limited. 8. CHAPTER-IV 62 . Location advantages include: a) Proximity to National and state Highway b) Just 1.6. The shortest construction time in the private sector 10. India.

PERFORMANCE APPRAISAL GENTING LANCO POWER(INDIA) Pvt Ltd 1). Interpretation: 63 .No 1 2 Opinion Confidential report 360’ Performance appraisal Total Respondents 47 3 50 Percentage (%) 94% 6% 100% Source: Compiled from the collected data of the study.1: Views of the Respondents on the Method of Appraisal S. What method of appraisal would your management use to evaluate your performance? Table No.

1: Views of the Respondents on the Method of Appraisal 2). Interpretation: From the above information It is understood that 90% of the employees are agree the main objective of the performance appraisal is to get the incentives and promotions and 10% of the employees are agree the main objective of the management is Termination of the employee. 64 .From the above information It is understood that the management above 94% Confidential report of performance method is used to emulate to assess their employees and only 6% of the employees are agree 360’ performance appraisal is better to evaluate the performance of the employee.No 1 2 Opinion Incentives & promotions Termination Total Respondents 50 0 50 Percentage (%) 100% 0% 100% Source: Compiled from the collected data of the study.2: Views of the Respondents on the Method of Appraisal S. what is the main objective of performance appraisal? Table No. Figure No.

4: Views of the Respondents on the Method of Appraisal S.3: Views of the Respondents on the Method of Appraisal 4. Do you think proper training is required to improve your performance? Table No.Figure No. Figure No. Interpretation: From the above information It is understood that 97% of the employees are agree the proper training is required to improve the performance of the employee and 3% of the employees are disagree.) How much period of training they give to you? Table No.3: Views of the Respondents on the Method of Appraisal S.2: Views of the Respondents on the Method of Appraisal 3).No 1 2 Opinion 3 Months 6 Months Respondents 4 4 Percentage (%) 8% 8% 65 .No 1 2 Opinion Yes No Total Respondents 48 2 50 Percentage (%) 97% 3% 100% Source: Compiled from the collected data of the study.

Interpretation: 66 .5: Views of the Respondents on the Method of Appraisal S.4: Views of the Respondents on the Method of Appraisal (5) Is the training given by the management is sufficient to you to improve performance level? Table No. Interpretation: From the above information It is understood that 8% of the employees are agree 3 months of the training and 8% of the employees opinion is 6 months and above 90% of the employees are strongly agree the training period is one year the management is given to them Figure No.No 1 2 Opinion Yes No Total Respondents 48 2 50 Percentage (%) 97% 3% 100% Source: Compiled from the collected data of the study.3 Once Year Total 42 50 94% 100% Source: Compiled from the collected data of the study.

Interpretation: From the above information It is understood that 97% of the employees are agree whatever the appraisal system apply in the organization is really useful to improve their performance 3% of the employees are disagree. Figure No.Do you think the appraisal system will improve your performance? Table No.6: Views of the Respondents on the Method of Appraisal S.No 1 2 Opinion Yes No Total Respondents 48 2 50 Percentage (%) 97% 3% 100% Source: Compiled from the collected data of the study.6: Views of the Respondents on the Method of Appraisal 67 .5: Views of the Respondents on the Method of Appraisal (6).From the above information It is understood that 97% of the employees are agree training is given by the management is sufficient to improve their skill and performance and 3% of the employees are say “No” is not sufficient. Figure No.

in the Figure No. How do you feel about the appraisal process in your organization? Table No.7: Views of the Respondents on the Method of Appraisal S.No 1 2 3 Opinion Excellent Good Bad Total Respondents 3 45 2 50 Percentage (%) 6% 90% 4% 100% Source: Compiled from the collected data of the study.(7).How often they evaluate your performance level? Table No.7: Views of the Respondents on the Method of Appraisal (8).No 1 Opinion 3 Months Respondents 0 Percentage (%) 0% 68 . Interpretation: From the above information It is understood that 6% of the employees are say the performance appraisal system in the organization is Excellent and 90% of the employees opinion the performance appraisal system organization is Good and only 45 of the employees opinion is Bad.8: Views of the Respondents on the Method of Appraisal S.

9: Views of the Respondents on the Method of Appraisal S.2 3 6 months Once year Total 0 50 50 0% 100% 100% Source: Compiled from the collected data of the study.No 1 2 3 Opinion Monthly 2 months 3 Months Total Respondents 2 3 45 50 Percentage (%) 4% 6% 90% 100% Source: Compiled from the collected data of the study. Interpretation: From the above information it is understood that 4% of the employees are say employee should be assessed by the organization every month and 6% of the employees opinion is 2 months and 90% of the employees opinion 69 . Interpretation: From the above information It is understood that 4% of the employees are say the evaluation process of performance appraisal system in the organization is 3 months and 6% of the employees opinion is 6 months and 90% of the employees opinion about the evaluation process of the performance is once a year. Figure No.8: Views of the Respondents on the Method of Appraisal (9). How often should an employee be assessed? Table No.

about the employee assessed process is conducted by the organization every 3 months in a year.9: Views of the Respondents on the Method of Appraisal (10). Figure No. Interpretation: From the above information It is understood that 64% of the employees are satisfy about the co-operation among the workmen. superior & executives? Table No. superior and executive and 16% of the employees opinion is they are not satisfy and 20% of the employees opinion about the co-operation among the workmen. The spirit of co-operation among the work men. Figure No.10: Views of the Respondents on the Method of Appraisal S. superior and executive is “Neutral”.10: Views of the Respondents on the Method of Appraisal 70 .No 1 2 3 Opinion Satisfactory Non-satisfactory Neutral Total Respondents 32 8 10 50 Percentage (%) 64% 16% 20% 100% Source: Compiled from the collected data of the study.

(11).No 1 2 Opinion Yes No Total Respondents 48 2 50 Percentage (%) 97% 3% 100% Source: Compiled from the collected data of the study.No 1 Opinion Yes Respondents 48 Percentage (%) 97% 71 . peers decisions while rating your performance? Table No. Do you think it is better to take subordinate. Do you think it should better to have a appraisal committee to evaluate the performance? Table No. Figure No.11: Views of the Respondents on the Method of Appraisal S. Interpretation: From the above information It is understood that 97% of the employees are feel it is better to take subordinate.11: Views of the Respondents on the Method of Appraisal (12). peers decisions while rating our performance and 3% of the employees are disagree.12: Views of the Respondents on the Method of Appraisal S.

Figure No.13: Views of the Respondents on the Method of Appraisal S.2 No Total 2 50 3% 100% Source: Compiled from the collected data of the study. what do you expect from P.No 1 2 Opinion Incentives Promotions Total Respondents 2 48 50 Percentage (%) 3% 97% 100% Source: Compiled from the collected data of the study.12: Views of the Respondents on the Method of Appraisal (13). Interpretation: 72 .A? Table No. Interpretation: From the above information It is understood that 97% of the employees are feel it is better to appoint a special appraisal committee to assess and emulate the performance of the employee and 3% of the employees are not agree to appoint a special appraisal committee.

From the above information It is understood that 3% of the employees are except from the organization is only incentives and majority of the employees it means 97% of the employees are except from the organization through performance appraisal is promotions. Interpretation: From the above information It is understood that 97% of the employees are feel the perfect and effective performance appraisal system will be increase the relations between the superior and subordinates and 3% of the employees are not agree.No 1 2 Opinion Yes No Total Respondents 48 2 50 Percentage (%) 97% 3% 100% Source: Compiled from the collected data of the study. Figure No.13: Views of the Respondents on the Method of Appraisal (14). 73 . Do you think P.14: Views of the Respondents on the Method of Appraisal S.A will build good relations between superior and subordinates? Table No.

Figure No. which of the following approach is followed in your organization? Table No. Figure No.No 1 2 3 Opinion Tell-tell type Tell.15: Views of the Respondents on the Method of Appraisal 74 .14: Views of the Respondents on the Method of Appraisal (15).15: Views of the Respondents on the Method of Appraisal S.listen type Problem solving Total Respondents 7 7 36 50 Percentage (%) 14% 14% 72% 100% Source: Compiled from the collected data of the study. Interpretation: From the above information It is understood that 14% of the employees are agree the Tell-Tell type interaction approach fallow and 14% of the employees are Tell-Listen type and majority of the employees are problem solving techniques are apply in the organization.

It is observed from the study majority of the employees participated in the performance appraisal rating system conducted by the organization. SUGGESTIONS AND CONCLUSION FINDINGS OF THE STUDY 1.CHAPTER-V FINDINGS. 75 .

76 . 6. The sources of the performance appraisal rating are both from internal and external sources. 3. Majority of the employees accepted that the effective performance appraisal rating system program improve their performance. The majority employees are satisfied with the existing performance appraisal rating program and they are expressed that they will improve the performance.2. The employees are showing more interest to make them self more efficient and effective through the performance appraisal rating program. 5. Feedback sessions are there for performance appraisal system. Rest of the employees’ opinion is better to conduct for every 3 months. Since the employees are satisfied with existing performance appraisal rating system programmers' the same may be continued. 7. 8. Most of the employees are satisfied with the effectiveness of performance appraisal system.e. Most of the respondent’s i. 4. SUGGESTIONS 1.90% of employees said that the employee assessed programmers' conducted once in a year.

3. CONCLUSION 77 . Due to care has to be taken for identification of the training needs of the employees. 8. Management should take necessary steps to provide effective appraisal techniques to all the employees. Performance appraisal period should be reasonable with timings of employee arranged as for the convenience of employee with regular intervals. 7. 5. for better results. Management should take necessary steps to make all the employees involve in the identification of performance appraisal rating system in the organization. 4.2. 6. The management of Genting Lanco Company should continue the same interest towards the appraisal system programmers’ in future also. Some of the employees expressed that they are assessed by the organization every year but that they feel this program will be conducted by the every 3 months it is better to the employees for their improvement. Improve the industrial relation. The company may be suggested to undertake much more effective and efficient appraisal systems along with traditional systems.

It is observed that the performance appraisal rating system program is very much useful in identifying the performance level. It mainly emphasizes the performance level of employess programmers’ in a well structured way. After doing a comprehensive studying the performance appraisal rating system process in Genting Lanco at Kondapalli. where they have lack of knowledge in doing their jobs in an effective manner. The feedback should be such that the individuals are to be known about their faults.Performance appraisal tells us about the state of affairs of the organization with regard to the employees. 78 .

APPENDIX A. Bibliography 79 . Questionnaire B.

 Income: Questionnaire (1) What method of appraisal would your management use to evaluate your performance? (a)Confidential report appraisal (b) 360’ Performance (2)What is the main objective of the performance appraisal system of your organization? (a)Incentives & promotions (b) Termination (3) Do you think proper training is required to improve your performance? (a) Yes (b) No (4) How much period of training should be given to you for improving your performance? 80 .QUESTIONNAIRE ON PERFORMANCE APPRAISAL Personal Profile of the Respondents 1. Age   : 2. Gender: 3. Education: 4.

peers opinions while rating your performance? (a) Yes (b) No 12) Do you think it should better to have an appraisal committee to evaluate your performance? (a) Yes (B) No (13) What do you expect from PAS? 81 . superior and executives? (a)Satisfactory Neutral (b) Non-satisfactory (c) (11)Do you think it is better to take subordinate.(A) 3 Months (c)Once Year (b) 6 Months (5) Is the training given by the management is sufficient to you to improve your performance level? (a) Yes (b) No (6)Do you think the appraisal feedback will improve your performance? (a) Yes (b) No (7)How do you feel about the appraisal process in your organization? (a )Excellent (b) Good (c) Bad (8)How often management evaluates your performance level? (a) 3 Months (b) 6 months (c) Once in a year (9)How often should an employee be assessed? (a)Monthly (b) 2 months (c) 3 Months (10) The spirit of co-operation among the work men.

listen type (c) Problem BIBLIOGRAPHY Title Human resources & Personal management Organizational Behavior Author Aswathappa Publication Tata Mc Grew hill Edition 2nd edition Stephen.com Www.com • 82 . Mamoris Himalaya publication 5th Edition WEB SITES • • www.hr.B. lkpl@lancogroup.P.Robbins Prentice.hall of India 9th edition Personal Management C.com www.(a)Incentives (b) Promotions (14) Do you think PAS will build good relations between superior and subordinates? (a) Yes (b) No (15)Which of the following approach is followed in your organization? (a) Tell-tell type solving (b) Tell.google.

83 .