ON THE JOB TRAINING

IN

HIMACHAL PRADESH POWER CORPORATION LIMITED (HPPCL)

ON

PERFORMANCE APPRAISAL AT HPPCL

IN PARTIAL SUBMITTED FULFILMENT OF

AWARD OF DEGREE OF

MASTER OF BUSINESS ADMINISTRATION (MBA)

(SESSION 2019-2021)

SUBMITTED TO: SUBMITTED BY:

Dr. NARENDER CHAUHAN NIKHIL THAKUR

EXAM ROLL NO.

190521221220056

HIMACHAL PRADESH UNIVERSITY BUSINESS SCHOOL

HIMACHAL PRADESH UNIVERSITY

SUMMERHILL SHIMLA
 CANDIDATE DECLARATION

I the undersigned solemnly declare that the project report PERFORMANCE APPRAISAL
is based on my own work carried out during the course of our study under the supervision of
Mr.RAJESH MAMGAIN
I assert the statements made and conclusions drawn are an outcome of my research work. I
further certify that
I. The work contained in the report is original and has been done by me under the
general supervision of my supervisor.

II. The work has not been submitted to any other Institution for any other
degree/diploma/certificate in this university or any other University of India or
abroad.

III. We have followed the guidelines provided by the university in writing the report.

IV. Whenever we have used materials (data, theoretical analysis, and text) from other
sources, we have given due credit to them in the text of the report and giving their
details in the references.

NIKHIL THAKUR
Roll No. 4057
 PREFACE

“Internship programme” is recognized for the betterment and up gradation of the

students and to get practical exposure. This is a 6-8 weeks training program where the
students are required to work in a company.

I did my internship report on performance appraisal where I came to know about the
internship procedure practically. During the internship program I faced many challenges and
learnt how to face them. That eventually helped me to understand the importance of theories
in a real corporate world.

For this report I used Google forms for data collection filled up by the different department
employees. During the interaction I got to know about employee’s perception, thinking,
knowledge, ideas for self as well as the organisation which helped me in my practical
experience in the company.
 ACKNOWLEDGEMENT

I would like to convey my heartiest gratitude to several people, for their support and guidance
which helped me complete my winter internship.

First and foremost, I would like to thank HPPCL CORPORATE OFFICE for giving me an
opportunity to do my internship in their esteemed company. My special appreciation extends
to Mr. Rajesh Mamgain, Mr. Sandeep Kumar, Mr. Chanderkant Verma, Mr. Ajay
Mahajan, Ms. Geeta Devi, Mr. Pratap Singh, Mr. Vaibhav Thakur for their constant
encouragement throughout this period.

I would also like to thank our Programme Co-ordinator, Mr. Narender Chauhanfor his
guidance and unflinching support throughout the phases of my internship.

My special thanks to my classmates and dear friends, for their support throughout my
internship. With their help I could complete my work efficiently and effectively. Last but not
the least, my endless appreciation goes to my family who has stood by my side and given me
moral support whenever I was low and boosted my will power.

Nikhil Thakur
 TABLE OF CONTENTS

Sr. No. Title Page No.

1 Certificate 1

2 Candidate Declaration 2

3 Section-1

4 Chapter - 1 1-8

Profile of the company

1.1 About the organization
1.2 Target
1.3 Aim
1.4 Mission
1.5 Human resources
1.6 Chairperson and Board of Directors
1.7 Administrative structure
1.8 Project with HPPCL
1.9 Duties and Responsibilities of P&A wing
5 Chapter - 2 9-23

2.1 Meaning Of Performance Appraisal

2.2 Importance and purpose of Performance Appraisal
2.3 Advantages of Performance Appraisal
2.4 Limitations of performance Appraisal
2.5 Factors Deterring Objective Performance Appraisal
2.6Methods of Performance Appraisal
2.6.1 Traditional Methods
2.6.2 Modern Methods
2.6.2Modern Methods
2.6.3 Benefits of Performance Appraisal
2.6.4 6 Steps to A Successful Performance Appraisal
2.6.5 Reasons for Performance Appraisal Failures
2.6.6 Performance Appraisal Purpose And How to Make
It Easier
6 Chapter – 3 24-30

3.1 Performance Appraisal

3.2 Communication of Adverse Remarks
3.3 Grade Service
3.4 Test/Interview & Qualification
3.5 Criteria For Promotion To The Next Higher Grade
3.6Constitution and Role of Departmental promotion
committee
3.7 Reservation For SC/ST
3.8 Debarring

7 Section – 2

Chapter – 4 31-34

4.1 Knowledge gained during the internship program

4.2 Enterprise Resource Planning (ERP)
4.3 SAP

8 Chapter – 5 35-36

5.1 Research Design

5.2 Data Collection
5.3 Primary Data
5.4 Secondary Data
5.5 Sampling
5.6 Sampling Size
5.7 Limitations of The Study

9 Chapter – 6 37-43

Data Analysis, Interpretation, Findings& Suggestions

10 Chapter – 7 44- 50

Conclusion
References
Questionnaire
Annexure
 Table of Figures

Figure No. Title Page No.

Figure 1.1 Organization Structure 3

Figure 1.2 Performance appraisal Methods 14

Figure 1.3 Management by Objectives 17

Figure 1.4 Stages in a Typical Assessment Centre 18

Appraisal

Figure 1.5 6 - Steps to a Successful Performance Appraisal 20

 List of Tables

Table No. Title Page No.

Table 1.1 Phase - 1 Projects 3

Table 1.2 Phase – 2 Projects 4

Table 1.3 Phase – 3 Projects 5

Table 1.4 Performance Appraisal 24

Table 1.5 Grade Service 26

Table 1.6 Criteria For Promotion 27

Table 1.7 Factors 27

 ABSTRACT
Performance Appraisal is the organized analysis of the overall performance of employees and
to realize the capabilities of an individual for further growth and development. Performance
appraisal is generally done in systematic ways which are as The supervisors measure the pay
of individuals and compare it with targets and plans. The supervisor examines the factors
behind work performances of employees. The employers are in position to guide the
employees for a much better performance.

Appraisal is a continuous process and done annually as a formal exercise before completion
of the financial year. Appraisal has tremendous motivational impact on people through
meaningful feedback and is a powerful tool for recognition. This project explains
performance appraisal system and tries to find out how efficiently Performance Appraisal is
conducted. And if performance appraisal doesn’t meet its objective, then, what are the factors
causing failure. In this report we will discuss about the performance appraisal in HPPCL.
 CHAPTER- 1

COMPANY PROFILE
1.1 About The Corporation

Himachal Pradesh Power Corporation Limited (HPPCL) was incorporated in December,

2006 under the Companies Act 1956, with the objective to plan, promote and organize the
development of power generation on behalf of Government of Himachal Pradesh (GoHP).
Target of HPPCL is to develop 281 MW Power generating capacity by March, 2021 and 861
MW by the year 2024.

Presently there are 22 Hydro Electric Projects allotted by the GoHP for development under
state sector to HPPCL with aggregate installed capacity of 2817 MW. HPPCL has also been a
nodal agency for development of Kishau Multipurpose Project (660 MW) to be executed
through a Special Purpose Vehicle of Govt. of Himachal Pradesh and Govt. of Uttarakhand.
Himachal Pradesh has 50% share in the project thereby making the total allotted potential of
3147 MW.

HPPCL has set up a Solar Power Project of 5 MW at Berra Dol, near Shri Naina Devi Ji
Shrine in District Bilaspur and same has been successfully synchronized with grid on
07.12.2018. The Berra Dol Solar Power Project (5 MW) was commissioned on 4th January,
2019 and was inaugurated on 20.02.2019 by Hon'ble Chief Minister, Himachal Pradesh. 

HPPCL is also in the process of setting up a 10 MW Solar Power Project at Aghlor in Distt.
Una of Himachal Pradesh

1.2 Vision

To fully develop the allotted power generation potential in a sustainable manner.

1.3 Mission

To bring prosperity in the State of Himachal Pradesh by harnessing the allotted/assigned

hydroelectric power/energy potential in various river basins traversing the State.

1.4 Aim
To come up as a major power generating company of India with good managerial and
technical capabilities.

1
1.5 Target

To develop 861 MW Power Generation capacity by March, 2021 and 1238 MW by the year
2022.

1.6 Chairperson And Board Of Directors

Chairperson:

Shri Anil Kumar Khachi, IAS, is the Chief Secretary to the Government of Himachal
Pradesh.

Board of Directors:

 Chairperson - Shri. Anil Kumar Khachi , IAS, Chief Secretary to Govt. of Himachal
Pradesh

 Director –Sh. Prabodh Saxena IAS, Addl. Chief Secretary Finance), Govt of HP

 Director –Sh. Ram SubhagSingh , IAS, Chief Secretary (MPP & Power), Govt HP
and HPSEBL

 Managing Director - Sh.Amit Kashyap, IAS MD, HPPCL, Shimla

 Director - Sh. Manmohan Sharma , IAS, Director (Personnel & Finance), HPPCL,

Shimla

 Director -Er. Shashikant Joshi (Electrical), HPPCL, Shimla

 Director - Er. Dharam Singh Thakur Director (Civil), HPPCL, Shimla

2
 1.7 Administrative Structure

Figure 1.1: Organization Structure

1.6 Projects with HPPCL

A) PHASE-I PROJECTS
Under Implementation- 856 MW
Sr. Project Installed Power Generation in 90
No. Capacit % dependable year
y

1. Kashang HEP Stage -I 65 MW 791 MU

2. Kashang HEP Stage –II 130 MW

&III

3. SawraKuddu HEP 111 MW 386 MU

4.. Sainj HEP 100 MW 322 MU

5. ShongtongKarcham HEP 450 MW 1579 MU

Table 1.1: Phase-I Projects

3
B) PHASE-II PROJECTS

Under Investigation -1285 MW

Sr. Project Capacity Status

No.

1. Renukaji Dam Project 40 MW DPR prepared with

incidental power
generation of 40 MW

2. Kashang Stage -IV 48 MW DPR prepared

3. Chirgaon- Majhgaon HEP 60 MW DPR under preparation

4. SurganiSundla HEP 48 MW DPR prepared, TEC

received

5. Nakthan HEP 520 MW DPR under preparation

6. Thana-Plaun HEP 141 MW DPR under preparation

7. Triveni Mahadev HEP 78 MW DPR under preparation

8. Gyspa Dam Project 300 MW DPR under preparation

Table 1.2: Phase-II Projects

PHASE-III PROJECTS

4
 Under Pre-feasibility Stage - 963 MW

Sr. Project Capacity Remarks

No.

1. ChhotiSaichu HEP 26 MW Pre-feasibility Reports of all

Phase-III Projects prepared,
2. SaichuSach Khas HEP 117 MW
except for Khab HEP.
3. Lujai HEP 45 MW

4. Saichu HEP 58 MW

5. DeothalChanju HEP 33 MW

6. Chanju –III HEP 48 MW

7. Khab HEP 636 MW

Table 1.3: Phase-III Projects

1.8 DUTIES & RESPONSIBILITIES OF P&A WING

Human Resource Management is the process of acquiring, training, appraising, and
compensating employees and attending to their labour relations, health and safety, and
fairness concerns. Human Resource (HR) Department deals with the personal aspect of the
employees. This department deals in recruitment, training and promotion of the employees.
Human resource department describes the administrative personnel functions with
performance, employee’s relations and resource planning. The more common usage within
corporations and businesses refers to the individuals within the firm, and to the portion of the
firm's organization that deals with hiring, firing, training, and other personnel issues.
The objective of human resources is to maximize the return on investment from the
organization's human capital and minimize financial risk. It is the responsibility of human
resource managers to conduct these activities in an effective, legal, fair, and consistent
manner.

Main Functions of HRM in an organization are:

5
  Identifying and Developing Persons

 Retaining Suitable Persons

 Creating a Work Culture

 Educating Managerial Personnel

 Conducting Research

 Developing a Communication System

HR department is well established in HPPCL. This department is commonly known as

personnel and administrative (P&A) section of the corporation. This section deals with the
issues related to the work force of the corporation. HPPCL is newly formed corporation and
the work for development of departments is in the process. The Human Resource department
is also being established along with other departments of the corporation. Formulation of
various HR policies is under process and will be formulated soon in due course.
HPPCL Human Resource department focuses more on the technical side as its domain area is
production of Hydro Power. More focus is on providing its new employees full technical
knowledge. Most of the employees are of engineering background. HPPCL has a large
manpower which works in various projects undertaken by the corporation. Human Resource
department is well developed in corporate office situated in Shimla. HPPCL human resource
department deals in providing employees good working environment and social well being.
HPPCL’s human resource department is known as Personnel & Administration (P&A)
section.

HPPCL’s HR department focuses on the followings:

 Establishment
 Recruitment
 Training

A brief of the above functional areas of HR department are given below:

1) Establishment: The establishment section of HR department in HPPCL deals with

record keeping and maintenance of employee database. All the records are kept by the

6
 establishment section. This section keeps both personnel and administrative records.
In establishment section the (P&A) logistics is maintained. This department
maintains all the service books. This section maintains the records relating to
administrative use of items such as stationery, etc.

2) Recruitment: In HPPCL both internal as well as external recruitment takes place.

The internal recruitment is done through promotion, references etc. External
recruitment is done through deputation, selection and other sources. Recruitment in
HPPCL is conducted by the (P&A) section of the corporation. In the future all the
recruitment will be conducted by through Himachal Pradesh Public Service
Commission (HPPSC).
Most of the employees in the corporation are contracted employees. The employees
recruited by the corporation itself are the contracted employees. There is a proposal to
soon regularize all the contracted employees of the corporation. Most of the
employees are on deputation with approximately 90% of the manpower drawn from
Himachal Pradesh State Electricity Board (HPSEB). The rest of employees on
deputation are from HPFC, HPMC and several other government owned
organizations. The work on formulating recruitment policy is under the process. Till
the time such policy is framed H.P. Govt. norms will be followed.

3) Training: After the employees are selected, they are provided Induction training.
Internal training, seminars and workshop are organized at regular intervals for the
development of the workforce in HPPCL. Main focus of training is on technical
aspects as the all the projects are in construction phase Training is funded through
Asian Development Bank (ADB) and Himachal Institute of Public Administration
(HIPA). Training is approved by the board of directors and it is followed accordingly.
Every employee in HPPCL is entitled to training at various levels.

Level of employees in corporation:

 Worker: W0 -W11
 Executive: E0 - E9
 Supervisory: S1-S4
Workers are entitled up to 2 days training in a year.

7
Executives are entitled up to 7 days training in a year and 15 days training once in 3 years.
Higher level than executives is entitled to 15 days training in a year and outside India once in
2 years.
From time-to-time training is provided to employees in order to update their knowledge.

CHAPTER 2

THEORITICAL FRAMEWORK

8
2.1 Meaning of Performance Appraisal

The effectiveness of staffing functions needs to be ascertained by evaluation the performance

of employees in terms of the job requirement. Performance appraisal or employee appraisal is
the systematic process of measuring and evaluating employees with respect to their
performance on the job and their potential for development. Although performance appraisal
if often described as merit rating, strictly speaking, rating is only one form of personnel
evaluation. Performance appraisal is a more comprehensive process which combines formal
rating with supplementary observations, records and evaluation (Dale Yeder).

Performance Appraisal is the process of assessing the performance and progress of an

employee or of a group of employees on a given job and his potential for future development.
According to FLIPPO “performance appraisal is the systematic, periodic and an impartial
rating of an employee's excellence in matters pertaining to his present job and his potential
for a better job”.

Heyle observes; “it is the process of evaluating the performance and qualifications of the
employees in terms of the requirement of the job for which he is employed, for purpose of
administration including placement, selection for promotions, providing financial rewards
and other actions which require differential treatment among the members of a group as
distinguished from actions affecting all members equally.”

2.2 IMPORTANCE AND PURPOSE OF PERFORMANCE APPRAISAL

Performance appraisal has been considered as a most significant and indispensable tool for an
organization, for the information it provides is highly useful in making decisions regarding
various personal aspects such as promotions and merit increases. Performance measures also
link information gathering and decision-making processes which provides a basis for judging
the effectiveness of personnel sub-divisions such as recruiting, selection, training and
compensation. Below are given views of some experts which will bring out the importance
and purpose of PA. According to Barret, PA is concerned mainly with three things.
 Administrative decisions i.e., promotion, transfer and allocation of financial rewards.
 Employee development i.e., identification of training and development needs and
performance feedback.
 Personnel research i.e., generation of manpower information besides salary and wage
distribution.

9
Mc Gregor says: Formal performance appraisal plans are designed to meet three needs, one
of the organizations and the other two of the individuals, namely

 This provides systematic judgment to back up salary increases, transfer, demotion or

termination.
 They are means of telling a subordinate how he is doing and suggesting changes
needed in his behaviour, attitude, skills or work knowledge. They let him know where
he stands with the boss.
 They are used as a base for coaching and counselling the individual by the superior.

2.3 Advantages of Performance Appraisal

Performance appraisal basically offers the following main advantages to the organization and
its employees:
 Employee performance: It provides a yardstick by which both accomplishment and
needs for further improvement in respect of an individual can be measured.
The use of system of performance appraisal contributes towards more effective and
improved performance on the part of many individual.
 Employee development: It is used to highlight needs and opportunities for growth and
development of employees by focusing attention on their deficiencies and potentials.
It is particularly useful in discovering needs of training to employees.
 Wages and Salary Adjustment: It is also used by certain organizations to grant merit
increases in pay to employees in certain categories of jobs.
 Evaluation of Supervisor & Manager: Performance appraisal also provides valuable
yardstick to measure the effectiveness of supervisors and managers in developing the
team members who work under their direction.
 Performance appraisal is beneficial for assessing strengths and weaknesses of an
employee. It enables to find out areas / tasks in which the employee is competent.
Basically, the process is useful for identifying true potential and interests of the
employees. Such analysis helps HR Department to assign right jobs according to the
skill and competencies of employees.
 The manager / team head shares evaluation result with the respective employees. Such
feedback is useful as it enables employees to focus on improving their strengths. The
managers also suggest ideas and methods through which employees can overcome

10
 their weaknesses. Thus, the process helps in personal & career development of
employees.
 The process involves recognizing & rewarding employee’s efforts and performance. It
boosts their morale and confidence. Further, greater awareness of one’s true potential
motivates employees to give their best performance. The organization acknowledges
efforts of employees by giving higher salary, higher responsibilities, certificates and
other monetary and non-monetary benefits. These benefits and recognition also
motivates other employees to perform better at their job.
 The assessment of strengths and weaknesses of employees is useful for HR
department to plan and design training programmes. The employees are provided with
right training at right time to overcome their weaknesses and to develop their
strengths. The content and method of training can be modified according to the human
resource requirements.
 Performance appraisal is also an opportunity for the employees to discuss work
related problems with their superiors & to find out ways to resolve them. Promotions
and transfers are done on the basis of performance of employees. The fair promotion
and transfer policies improve relationship between employees & management. It also
facilitates good work atmosphere which directly benefits the final output.
 Performance appraisal is useful for taking inventory of quality of human resources
available in the organization. This information helps in future planning and
development of human resources. As per the assessment, the HRD can plan to recruit
new employees or develop the quality of existing workforce in the organization. This
ensures that organization has required quality and quantity of manpower to carry out
its activities.
 Performance appraisal is also an opportunity for the employees to convey their needs
and expectations to superiors. Further, employee can seek guidance of their managers
to improve performance and also for career advancement. In short, the process gives a
platform to improve employee communication.
 Appraisal facilitates acknowledgement of employee’s efforts and achievements. This
motivates employees to learn and acquire new skills that aid them in personal and
career development. This process boosts employees’ confidence and encourages them
to take challenging tasks. During appraisal, managers also suggest ideas and methods
to improve their attitude, behaviour, mental ability, emotional stability and so on.

11
  Performance appraisal is beneficial for identifying talented employees in the
organization. This information helps the organization in grooming and developing
competent employees. The organization acknowledges the efforts and achievement of
employees through promotion, deputation, transfer etc. Performance appraisal ensures
that promotion and transfer is only offered to employees based on merit and
experience, not on the basis of seniority and favouritism.

In addition to the above, performance appraisal make available the relevant information to
management for purposes of employee transfer, promotions, counselling, determination of
training needs, human recourse planning etc. so that they should be able to frame suitable
personnel policies to optimally utilize human and other recourses and achieve organizational
goals.

2.4 Limitations of Performance Appraisal

 Performance appraisal is a record of opinion and personal judgment.
 It can't be the last word for an employee as there is always a zone of uncertainty in the
system.
 It doesn't give comprehensive picture of employee performance.
 Its effectiveness depends upon the rates expertise and ability.
 The presence of ‘Halo Effect’ in evaluation of employees is the biggest weakness of
this method.
 If the standards are not clear, the supervisors may follow different standards for
different employees.
 An employee who can impress the boss may get a positive evaluation though his
impression in his own department may be very poor. In such cases, the performance
appraisal will be superfluous.
 Through performance appraisal, only few qualities of employees can be measured. All
individuals differ from each other in terms of background, values and behaviour.
 Every evaluator has his own valuation procedure which is regarded as his own
standard for evaluation. For example, some teachers are strict in evaluation of answer
books whereas others are lenient. The lenient tendency is known as ‘Positive

12
 Leniency Error’ whereas strict tendency is called as ‘Negative Leniency Error’. The
rating may be high or low depending upon the nature of evaluators.
 In order to give very low or very high rating, the top managers are required to give
reasons to justify the rating. The most common error committed in performance
appraisal is to give average rating to all employees. Moreover, low rating antagonizes
the subordinates.
 There is a tendency to give a high rating to highly paid jobs. So a senior employee
may get a higher rating than a junior employee.
 Sometimes, appraisal may not be conducted by skilled or trained managers. The
evaluation process may not be carried out properly owing to lack of knowledge and
experience of evaluator.
 Managers avoid giving negative remarks or poor ratings as employees may not always
view feedback in a positive manner. The managers try to avoid possible future
conflicts or arguments with employees. Moreover, they also fear non- cooperation
from employees in future.
It results in managers giving favourable ratings, so that work environment and
relationships are not affected. Moreover, the evaluator’s personal relation with the
employee also affects the process. Sometimes, managers may give higher ratings to
favourite’s employees. They may also give low rating to deserving employees due to
jealousy or fear that such employees might replace them.
 Managers have the tendency to give average rating to employees irrespective of their
actual performance. It means average rating is given to both, the underperformers as
well as the over performers. Generally, managers resort to this kind of behaviour in
order to avoid displeasing other employees, future conflicts, jealousy and tension in
the team. However, it is unfair for those employees who actually deserve high ratings
but are given average score.
 The main aim of appraisal system is to assess the performance of employees at current
job so that they can be motivated and developed further. However, the performance
reports may not be actually used by the managers to achieve this goal. The managers
prepare these reports only to fulfil their duties and obligation of company policy.
They may not always find time to evaluate actual performances of employees and to
develop their abilities.

13
  The evaluator tries to look those qualities in subordinates which he himself possesses.
Those who show the similar characteristics are rated high.

2.5 Factors Deterring Objective Evaluation

1. The Halo Effect
2. Leniency or Strictness Tendency or Constant Error
3. The Central Tendency Problem
4. Similarity Error
5. Miscellaneous Biases
6. Social Differentiation
7. Stereotyping

METHODS OF PERFORMANCE APPRAISAL

Several methods and techniques of appraisal are available for measurement of the
performance of an employee. The methods and scales differ for obvious reasons. First, they
differ in the source of traits or qualities to be appraised. The qualities may differ because of
differences in job requirements, statistical requirements and the opinions of the management.
Second, they differ because of the different kinds of workers who are being rated, viz.,
factory workers, executives or salesmen. Third, the variations may be caused by the degree of
precision attempted in an evaluation. Finally, they may differ because of the methods used to
obtain weightings for various traits.

Figure 1.2 : Performance Appraisal Methods

14
2.5.1 Traditional Methods
A. Ranking Method: It is the oldest and simplest formal systematic method of
performance appraisal in which employee is compared with all others for the purpose
of placing order of worth. The employees are ranked from the highest to the lowest or
from the best to the worst.
In doing this the employee who is the highest on the characteristic being measured
and also the one who is L lowest, are indicated. Then, the next highest and the next
lowest between next highest and lowest until all the employees to be rated have been
ranked. Thus, if there are ten employees to be appraised, there will be ten ranks from
1 to 10.
However, the greatest limitations of this appraisal method are that:
 It does not tell that how much better or worse one is than another,
 The task of ranking individuals is difficult when a large number of employees are
rated, and
 It is very difficult to compare one individual with others having varying behavioural
traits. To remedy these defects, the paired comparison method of performance
appraisal has been evolved.

B. Paired Comparison: In this method, each employee is compared with other

employees on one- on one basis, usually based on one trait only. The rater is provided
with a bunch of slips each coining pair of names, the rater puts a tick mark against the
employee whom he insiders the better of the two. The number of times this employee
is compared as better with others determines his or her final ranking.
The number of possible pairs for a given number of employees is ascertained by
the following formula:
N (N-1)/2
Where N = the total number of employees to be evaluated. Let this be exemplified
with an imaginary example.

C. Grading Method: In this method, certain categories of worth are established in

advance and carefully defined. There can be three categories established for
employees: outstanding, satisfactory and unsatisfactory. There can be more than three
grades. Employee performance is compared with grade definitions. The employee is,
then, allocated to the grade that best describes his or her performance.

15
 Such type of grading is done is Semester pattern of examinations and in the selection
of a candidate in the public service sector. One of the major drawbacks of this method
is that the rater may rate most of the employees on the higher side of their
performance.

D. Forced Distribution Method: This method was evolved by Tiffen to eliminate the
central tendency of rating most of the employees at a higher end of the scale. The
method assumes that employees’ performance level confirms to a normal statistical
distribution i.e., 10,20,40,20 and 10 per cent. This is useful for rating a large number
of employees’ job performance and promo ability. It tends to eliminate or reduce bias.
It is also highly simple to understand and easy to apply in appraising the performance
of employees in organisations. It suffer from the drawback that improve similarly, no
single grade would rise in a ratings.

E. Check-List Method: The basic purpose of utilizing check-list method is to ease the
evaluation burden upon the rater. In this method, a series of statements, i.e., questions
with their answers in ‘yes’ or ‘no’ are prepared by the HR department. The check-list
is, then, presented to the rater to tick appropriate answers relevant to the appraise.
Each question carries a weight-age in relationship to their importance.

F. Essay Method: Essay method is the simplest one among various appraisal methods
available. In this method, the rater writes a narrative description on an employee’s
strengths, weaknesses, past performance, potential and suggestions for improvement.
Its positive point is that it is simple in use. It does not require complex formats and
extensive/specific training to complete it.
However, essay method, like other methods, is not free from drawbacks. In the
absence of any prescribed structure, the essays are likely to vary widely in terms of
length and content. And, of course, the quality of appraisal depends more upon rater’s
writing skill than the appraiser’s actual level of performance.
Moreover, because the essays are descriptive, the method provides only qualitative
information about the employee. In the absence of quantitative data, the evaluation
suffers from subjectivity problem. Nonetheless, the essay method is a good start and
is beneficial also if used in conjunction with other appraisal methods.

16
2.5.2 Modern Methods

A. Management by Objectives (MBO): Management by objectives (MBO) is the appraisal

method where managers and employees together identify, plan, organize, and
communicate objectives to focus on during a specific appraisal period. After setting clear
goals, managers and subordinates periodically discuss the progress made to control and
debate on the feasibility of achieving those set objectives.

This performance appraisal method is used to match the overarching organizational

goals with objectives of employees effectively while validating objectives using the
SMART method to see if the set objective is specific, measurable, achievable, realistic,
and time-sensitive.At the end of the review period (quarterly, half-yearly, or annual),
employees are judged by their results. Success is rewarded with promotion and a salary
hike whereas failure is dealt with transfer or further training. This process usually lays
more stress on tangible goals and intangible aspects like interpersonal skills,
commitment, etc. are often brushed under the rug.

Figure 1.3 : Management by Objectives

B. 360-Degree Feedback:360-degree feedback is a multidimensional performance appraisal

method that evaluates an employee using feedback collected from the employee’s circle

17
 of influence namely managers, peers, customers, and direct reports. This method will not
only eliminate bias in performance reviews but also offer a clear understanding of an
individual’s competence.

C. Assessment Centre Method: The concept of assessment centre was introduced way back in
1930 by the German Army but it has been polished and tailored to fit today’s
environment. The assessment centre method enables employees to get a clear picture of
how others observe them and the impact it has on their performance. The main
advantage of this method is that it will not only assess the existing performance of an
individual but also predict future job performance.

Figure 1.4 : Stages in a Typical Assessment centre Appraisal

D. Behaviourally Anchored Rating Scale (BARS): Behaviourally anchored rating scales (BARS)
bring out both the qualitative and quantitative benefits in a performance appraisal
process. BARS compare employee performance with specific behavioural examples that
are anchored to numerical ratings. Each performance level on a BAR scale is anchored
by multiple BARS statements which describe common behaviours that an employee
routinely exhibits. These statements act as a yardstick to measure an individual’s
performance against predetermined standards that are applicable to their role and job
level.

18
 E. Human-Resource (Cost) Accounting Method:Human resource (cost) accounting method
analyses an employee’s performance through the monetary benefits he/she yields to the
company. It is obtained by comparing the cost of retaining an employee (cost to
company) and the monetary benefits (contributions) an organization has ascertained
from that specific employee.
When an employee’s performance is evaluated based on cost accounting methods,
factors like unit-wise average service value, quality, overhead cost, interpersonal
relationships, and more are taken into account. Its high-dependency on the cost and
benefit analysis and the memory power of the reviewer is the drawback of human
resources accounting method.

2.5.3 Benefits of Performance appraisal

For the organization:

The organization comes to know the true position of the employees working capacities and
the problems they face while working in the organization. This performance appraisal system
also acts as a motivating factor for the employees, which helps the organization to get better
results.
For the appraise:

The appraise fells themselves an important part of the organization, they get a chance to
express their views in front of their superiors; they get a platform to express their ideas. The
employee comes to know the truth about:
 To what extent they have achieved their objectives.
 In what respect their work has been most successful.
 Are there any aspects of their work, which they have not completed?

Guidelines for effective performance evaluation interviews

 emphasize positive aspects of employee performance
 tell employee that the purpose is to improve performance, not to discipline
 conduct the review in private
 review the performance formally at least annually (more frequently for those
performing poorly)

19
  make criticisms specific
 focus on performance, not personality
 stay calm; do not argue
 identify specific actions the employee can take to improve performance
 emphasize the evaluator's willingness to assist the employee's efforts to improve
performance
 end by stressing positive

2.5.4 6 Steps To A Successful Performance Appraisal

Figure 1.5 : 6 Steps To A Successful Performance Appraisal

1) reflect on what is required of the employee to do their job well (including

behaviour and results)
2) set goals that will benefit the individual and the business
3) share feedback on great work as well as areas for improvement
4) identify opportunities to develop performance through ongoing education,
training and learning
5) formally review performance after a specific period

20
 6) reward a job well done

2.5.5Reasons for Performance Appraisal Failures

Where performance appraisal fails to work as well as it should, lack of support from the top
levels of management is often cited as a major contributing reason. Opposition may be based
on political motives, or more simply, on ignorance or disbelief in the effectiveness of the
appraisal process.
It is crucial that top management believe in the value of appraisal and express their visible
commitment to it. Top managers are powerful role models for other managers and
employees.Those attempting to introduce performance appraisal, or even to reform an
existing system, must be acutely aware of the importance of political issues and symbolism in
the success of such projects.

Employee Participation
Employees should participate with their supervisors in the creation of their own performance
goals and development plans. Mutual agreement is a key to success. A plan wherein the
employee feels some degree of ownership is more likely to be accepted than one that is
imposed. This does not mean that employees do not desire guidance from their supervisor;
indeed, they very much do.

Performance Management
One of the most common mistakes in the practice of performance appraisal is to perceive
appraisal as an isolated event rather than an ongoing process.
Employees generally require more feedback, and more frequently, than can be provided in an
annual appraisal. While it may not be necessary to conduct full appraisal sessions more than
once or twice a year, performance management should be viewed as an ongoing process.
Frequent mini-appraisals and feedback sessions will help ensure that employees receive the
ongoing guidance, support and encouragement they need. Of course many supervisors
complain they don't have the time to provide this sort of ongoing feedback. This is hardly
likely. What supervisors really mean when they say this is that the supervision and
development of subordinates is not as high a priority as certain other tasks.
In this case, the organization may need to review the priorities and values that it has instilled
in its supervisory ranks. After all, supervisors who haven't got time to monitor and facilitate
the performance of their subordinates are like chefs who haven't got time to cook, or dentists

21
who are too busy to look at teeth. It just doesn't make sense. If appraisal is viewed as an
isolated event, it is only natural that supervisors will come to view their responsibilities in the
same way. Just as worrying, employees may come to see their own effort and commitment
levels as something that needs a bit of a polish up in the month or two preceding appraisals.

2.5.6PERFORMANCE APPRAISALS PURPOSE - AND HOW TO MAKE IT EASIER

Performance appraisals are essential for the effective management and evaluation of staff.
Appraisals help develop individuals, improve organizational performance, and feed into
business planning. Formal performance appraisals are generally conducted annually for all
staff in the organization. Each staff member is appraised by their line manager. Directors are
appraised by the CEO, who is appraised by the chairman or company owners, depending on
the size and structure of the organization.
Annual performance appraisals enable management and monitoring of standards, agreeing
expectations and objectives, and delegation of responsibilities and tasks. Staff performance
appraisals also establish individual training needs and enable organizational training needs
analysis and planning.
Performance appraisals also typically feed into organizational annual pay and grading
reviews which also commonly coincides with the business planning for the next trading year.
Performance appraisals generally review each individual's performance against objectives
and standards for the trading year, agreed at the previous appraisal meeting.
Performance appraisals are also essential for career and succession planning - for
individuals, crucial jobs, and for the organization as a whole.

Managers and appraise commonly dislike appraisals and try to avoid them. To these people
the appraisal is daunting and time-consuming. The process is seen as a difficult
administrative chore and emotionally challenging. The annual appraisal is maybe the only
time since last year that the two people have sat down together for a meaningful one-to-one
discussion. No wonder then that appraisals are stressful - which then defeats the whole
purpose.
Appraisals are much easier, and especially more relaxed, if the boss meets each of the
team members individually and regularly for one-to-one discussion throughout the
year.

22
 Meaningful regular discussion about work, career, aims, progress, development,
hopes and dreams, life, the universe, the TV, common interests, etc., whatever, makes
appraisals so much easier because people then know and trust each other - which
reduces all the stress and the uncertainty.
 Put off discussions and of course they loom very large.
 So, don't wait for the annual appraisal to sit down and talk.
 The boss or appraise can instigate this.
 If you are an employee with a shy boss, then take the lead.
 If you are a boss who rarely sits down and talks with people - or whose people are not
used to talking with their boss - then set about relaxing the atmosphere and improving
relationships. Appraisals (and work) all tend to be easier when people communicate
well and know each other.
 So, sit down together and talk as often as you can, and then when the actual formal
appraisals are due everyone will find the whole process to be far more natural, quick,
and easy - and a lot more productive too.

23
 CHAPTER 3

PERFORMANCE APPRAISAL AT HPPCL

3.1 Performance Appraisal

The performance Appraisal System in operation for the Supervisors of the company, as
modified from time to time, will generally provide the basis for determination of merit,
efficiency, potential and suitability of employees for promotion to the next higher grades.

The appraisal year shall be the calendar year for the Supervisors. Targets will be set by the
controlling officers for all the subordinates during the last quarter of the preceding year. A
copy of the targets so set will be sent to the concerned P&A; A Department and the Annual
Appraisal/Assessment Report format shall be as prescribed from time to time. In respect of
Supervisors who have been transferred on secondment to other organization, the concerned
Personnel Department shall maintain and obtain annual appraisal report. The authorities and
procedure for annual assessment shall be as per HPPCL rules.

The Appraisal System will be on a 5-point scale, as defined in the Appraisal formats. For the
purpose of promotion to the next higher grades, the ratings given in the Annual
Appraisal/Assessment Reports shall be converted in points as under:

RATING FROM POINTS RATING FOR POINTS RARING FOR

APPRAISAL 3 YEARS 4 YEARS
REPORTS ELIGIBILITY ELIGIBILITY
Outstanding 10 7.5
Very good 8 6
Good 6 4.5
Satisfactory 4 3
Unsatisfactory Null Null
Table No. 1.4: Performance Appraisal

3.2 Communication Of adverse Remarks

24
In the event of the overall assessment being un- satisfactory/not satisfactory/communication
will be issued to the concerned supervisor within one month of the report being counter.
signed by the counter- signing authority. For this, the counter signing authority will send back
the report to the reviewing officers for issuing the necessary communication to the concerned
Supervisor. The communication issued by the reporting/ reviewing officer contain all details
and specific facts and figures substantiating the adverse remarks. The identity of the superior
officer need not be disclosed.

The appraise concerned will be asked to give his comments on the communication issued.
The appraise should give his comments within one month of the receipt of the
communication. The adverse report along-with comments of the appraise will be examined
by the counter-signing authority, in consultation with the reporting and reviewing officers
who will record his final decision along-with reasons. In case the adverse remarks have been
recorded by the counter-signing authority, an officer senior to the counter signing authority in
consultation with the countersigning authority and the reviewing officer shall record the final
decision along-with reasons. The final decision will be taken within one month ofthe receipt
of the comments/representation of the appraise. Wherever, the reporting/reviewing counter-
signing officer is MD, his decision regarding expunction/ retention ofthe adverse comments
after due examination ofthe explanation submitted by the appraise willbe final.

The final decision will be communicated to the appraise with regard to:

 The earlier assessment being retained, or

 After due consideration the earlier remarks are expunged and the same
being noted in the appraisal form.

In case, Incumbent of any accepting authority ceases to be in employment, the next higher
authority will be treated as the Accepting Authority. If the incumbent of Reporting/
Reviewing authority ceases to be in employment the next higher authority will be considered
Reporting/Reviewing authority. On superannuation/resignation the acceptance of Annual
Appraisal Report shall be done within one month from the date of superannuation/
resignation.

3.3 Grade service

25
The points for grade service i.e., service rendered by the supervisors in their respective grades
shall be as under:

GRADE SERVICE POINTS RATING FOR PROMOTION

3 yeas 20
4 years 53
5 years 26
6 years and above 30
Table No.1.5: Grade Service

3.4 Test/ Interview & Qualification

 In addition to fulfilling the other eligibility conditions, an employee must possess the
requisite qualifications prescribed, if any, for the next higher post against which
he/she is to be considered for promotion.
 For promotion from 93 to El grade, the employee must qualify in the test(s) and/or
interview, as may be prescribed with the approval of Director (Personnel). Test(s)
and/or interviews are also to be conducted for promotion from S3 to S4 level, unless
specific relaxation is given by Director (Personnel).
 The test(s)/ interviews, wherever prescribed, shall be conducted by a Committee to be
constituted by Director (Personnel) for promotion from S3 to El level and appointing
authority for promotion from S3 to S4 level.
 The total number of points available for test(s)/ interviews shall be 40. In case, where
both tests and interviews are prescribed, the points shall be divided in the ratio of 1:1.

3.5 Criteria for Promotion to The Next Higher Grade

Factors which are to be taken into account for determining suitability for promotion of

a supervisor and the weight age thereof shall be as under:

1) Promotion of supervisors from the grade Sl to S2, S2 to S3 and S3 to S4:

FACTORS MAXIMUM POINTS

Performance Appraisal ratings (for last 3/4 30
years)

26
 Grade service 30
Test/Interview 40
TOTAL 100
Table No.1.6: Criteria For Promotion

The points for the Performance Appraisal Ratings and Grade service shall be as given in
paragraph 3.1 and 3.3 respectively.

In case where no test and/or interview is involved, the total maximum points will be 60 The
overall "Qualifying Percentage" for "Promotion "will be 63%.

2) Promotion of Supervisors from the grade of S3 to El :

FACTORS MAXIMUM OUTPUTS

Performance Appraisal ratings (for last 3/4 30
years)
Grade service 30
Test/Interview 40
TOTAL 100
Table No. 1.7: Factors

The Points for the Performance Appraisal Ratings and Grade Service shall be as given in
paragraph 3.1 and 3.3 respectively.

The Overall "Qualifying Percentage" for "Promotion" will be 75 %.

SC/ST candidates shall be given preference as per Govt. guidelines issued from time to time.

3.6 Constitution and Role of Departmental Promotion Committee

All the promotion in the supervisory categories will be carried outby the concern
projectexcept in case of promotion from supervisory to executive level, which will be
centralized atcorporate office. For the purpose of promotion, of supervisors to next higher
grade, a Departmental Promotion committee (DPC) shall be constituted appointing authority,
as under:

1) HOD of employee concerned

2) Sr. Manager (Pers.)/Manager (Personnel)
3) One other Head of Department
4) SC/ST representatives

27
 5) A representative from Corporate Personnel to be nominated by MD/Director
(Personnel).

The DPC will be held every year in the month of April. The DPC will consider thesuitability
or otherwise of the eligible supervisors for promotion to the nexthigher grade, on the basis of
their qualifications, Appraisal Reports, Test(wherever applicable) and other
documents/records available in the personalfiles which may have a bearing on their being
considered for promotions.

The DPC shall take into consideration the Performanceappraisal Reports includingSpecial
Performance Report, if any, for the last 3/4 years. In case, a Supervisor is notpromoted in the
first / subsequent DPCs the next DPC will consider the best 3/4Performance appraisal
Reports out of the reports for the last 4/5 years.10.4 The points secured by each eligible
supervisor from thePerformanceAppraisal Reports, Grade Service and points in test
(whereverapplicable) will be aggregated. Those supervisors who have been foundsuitable for
promotion will be Ranked in order of merit. Where theaggregate of the points is the same,
they will be ranked in the order ofseniority, as per the following criterion:

a) Length of service in a grade from the date of joining inclusive of seniority weight
age, if any or from the date of promotion in HPPCL.
b) Merit position in the selection panel where date of joining is the same or the merit
position in the DPC minutes where date of promotion is the same.

The panel of the selected supervisors, in the order of merit will be drawn by the Departmental
Promotion Committee and submitted to the competent authority forapproval. The competent
authority shall be the appointing authority ofthe respective posts/levels.

The promotion orders shall be issued by the respective Corporate (P&A)Department after
approval of the appointing authority.

3.7 Reservation For SC/ST

The directives of the Govt. of India with regard to reservation of posts for SC/STemployees
in the matter of promotion, as issued from time to time, will be followed in HPPCL also.

28
3.8 Debarring

Supervisor whose Annual Confidential Report/Performance Appraisal for any year during the
minimum eligibility period is rated ' Unsatisfactory/Not Satisfactory; will not be
considered for promotion to the next higher grade by DPC.

Supervisor who has been awarded minor punishment will be debarred for a period of one
year from the effective date of punishment order from consideration for promotion. However,
when an enquiry is prolonged for more than two years from the date of issue of charge sheet
and such delay is not attributable to the Supervisor and as a consequence of enquiry leads to
award of censure, then in that event the Supervisor shall not be debarred for promotion for
more than two years from the date of his/her eligibility. No Supervisor who has been awarded
three/more minor punishments in the same calendar year or major punishment shall be
considered for promotion for the next two years from the effective date of the last punishment
order. However, Supervisors will be considered by DPC for promotion immediately on the
next standard date of promotion as soon as the period of currency of punishment is over,
subject to completion of eligibility period.

Any Supervisor who has been on EOL for a period of 30 days or more in a year or 90 days in
3 consecutive years will not be considered for promotion, unless such leave is on medical
grounds. Further, impact of EOL (other than on medical grounds) shall be as under.

a) If EOL during the eligibility period is less than or equal to 30 days, the same will have
no effect on the eligibility date for promotion.
b) If EOL during the eligibility period is more than 30 days and less than or equal to60
days, the eligibility period will be extended by six months.
c) If EOL during the eligibility period is more than 60 days and less than or equal to 90
days, the eligibility period will be extended by one year.
d) If EOL during the eligibility period is more than 90 days and less than or equal to 120
days, the eligibility period will be extended by one year and six months. If the EOL
during the eligibility period is more than 120 days, the eligibility period will be
extended by two years. The maximum effect of EOLon extension of eligibility period
in a grade will be two years.

29
 e) If EOL is for less than six months in the assessment period, the assessment maybe
considered as representative of the whole assessment period.

No Supervisor under suspension or against whom disciplinary or vigilance proceedings have

been instituted shall be promoted until he is unconditionally reinstated or exonerated. In case
of unconditional reinstatement or exoneration, he will be allowed promotion with
retrospective effect, but the Financial benefit accruing due to promotion will be allowed.

With effect from the date of issuance of promotion orders only and no arrears will be Payable
on this account, unless specifically mentioned otherwise in the promotion DPO proceedings
shall be kept in sealed cover. In lightofthejudgment of Hon. Supreme court in case of Union
of India etc. vs. KV. JanakiRaman (AIRI 991SC2010), the cover procedure be adopted in
following circumstances:

a) Supervisor under suspension.

b) Supervisor in respectofwhom a charge sheet has been issued and the discipline
proceedings are pending; and
c) Supervisor in respect ofwhom prosecution fora criminal charge is pending

Other conditions for debarring employees from promotions as laid down by the Govt India/
H. P/ Company from time to time will be followed.

GENERAL:

All Clarifications/doubts relating to this policy may be referred to the Corporate (P/A)
Division and the decision of Managing Director shall be final.

The Management reserves the right to modify, cancel, add or amend any oftheprovision of
the policy at any time.

CHAPTER – 4

TASKED PERFORMED DURING INTERNSHIP

30
4.1 Knowledge gained during the internship program

A. Memorandum of Association (MOA):

MOA is the principal document of a company. It is considered as the charter of the
company. MOA contains the power and objectives of the company. MOA describe the scope
of operation of the company. It also provides information to outsiders such as creditors,
suppliers, etc to know the limitations and scope of a company dealings.

The company can’t go beyond MOA.

Content of the MOA

The following Information is mandatory in an MOA:

A. Name clause

B. Objective clause

C. Liability clause

D. Capital clause

E. Subscription clause

B. Articles of Association (AOA):

AOA contains rules and regulations regarding the management of a company's internal
affairs. AOA defines powers, duties and rights of managers, officers and Board of Directors.
The AOA must be signed by all the directors of the company. Contents of Articles of
Association The articles generally deal with the following

1. Classes of shares, their values and the rights attached to each of them.

2. Calls on shares, transfer of shares, forfeiture, conversion of shares and alteration of

capital.

3. Directors, their appointment, powers, duties etc.

4. Meetings and minutes, notices etc.

5. Accounts and Audit

6. Appointment of and remuneration to Auditors

31
7. Voting, poll, proxy etc.

8. Dividends and Reserves

9. Procedure for winding up.

10. Borrowing powers of Board of Directors and managers etc.

11. Minimum subscription.

12. Rules regarding use and custody of common seal.

13. Rules and regulations regarding conversion of fully paid shares into stock.

14. Lien on shares.

C. Act, Rule and Policy:

a)Act: The act is the statute, which in India needs to be passed by both the Houses of the
Parliament (Lok Sabha and Rajya Sabha) to be operative. These are known as primary
legislation. There are many acts in India dealing in various aspects of the law.

b) Rule: Rule is more precise statement, under the Act or Policy, which provided
distinctiveness and clarity to each of the provisions of the Act.

c) Policy: Policy is a broad set of instruction or guidelines, which ensures uniformity

equitability and clarity in decision-making process. In more concrete manner, it can be
shaped in the form of a law, regulation, procedure, administrative, action.

4.2. Enterprise Resource Planning (ERP) & SAP:

ERP applications automate and support a range of administrative and operational business
process across multiple industries, including line of business, customer facing, administrative
and the assets management aspects of an enterprise. A presentation was given to all the
trainees in conference hall by few of the staff members of HPPCL on ERP. The presentation
only included an overview of ERP and how SAP works.

1. ERP is process used by companies to manage and integrate the important parts of the
business. Many ERP software applications are important to companies because they help
them implement resource planning by integrating all of theprocesses needed to run their

32
companies within a single system. In this system includes integrate planning, purchasing
inventory, sales, marketing, finance, human resource. Various ERP software's are:

ODOO, SAP, oracle, Microsoft Dynamics, INFOR STYLINE

4.3 SAP–

It is developed by German company SAP SE

 SAP stands for Systems, Applications, and Products in Data

 Processing (Anwendungen und Produkte in der Datenverarbeitung in German). Globally

SAP has 24% market share more than any other

 Once an entry is made you cannot delete that entry in SAP but you canalter it SAP servers

a) Development (DEV): In this server customization is done according to the requirements

of the company.

b) Quality (QAS): It is the server where the customization will be checked if it is working
properly then we will move to production server but if there is any fault or error in the
customization then we go back to the development server.

c) Production (PRD): In this server all the live data of the company is recorded. SAP is based
on T codes (Transaction codes)

 SAP HR Modules

a) Organizational Management: This module enables the organization to represent the

organizational plan and analysis of the current plan.

b) Personnel Administration: It records essential employee's information. This module helps

us to perform various administrative tasks like hiring of the employees, personnel
information, travel expenses, payroll accounting, etc.

c) Time Management: This module is related to attendance, time evaluation, shifts, etc

d) Payroll Accounting: This module helps us to process the payment for the work which is
done by employees. It includes wages, medical benefits, taxes, deductions, etc

33
E. Facilitator & Regulator:

A Facilitator is a person who helps a group of people work together better, understand their
common objectives, and plan how to achieve these objectives, during meetings or
discussions. In doing so, the facilitator remains" neutral", meaning they do not take a
particular position in the discussion. A regulator is a person that supervises a business activity
or a particular industry. The role of HR is more of Facilitator than Regulator.

CHAPTER -5

RESEARCH METHODOLY

34
5.1 Research design
Research is an art of scientific investigation. Research comprises defining and redefining
problems, formulating hypothesis or suggested solutions, collecting, organizing and
evaluating data, making deduction and reaching conclusions and at last carefully testing the
conclusion to determine whether they formulating hypothesis.

5.2 Data collection:

Collection of the data is of primary importance in the research process. Data which is
collected for the purpose of research helps in proper analysis which is helpful to conduct
research effectively. The data source, which is very important in the collection of data, is
primary data and secondary data. Both primary and secondary data are taken into
consideration for the study Performance Appraisal of HPPCL.

5.3 Primary Data

Interview with HR executives and other employees and use of Questionnaires.

5.4 Secondary Data

 Journal papers
 HR Manual of the company
 Related online information
 Other relevant books

5.5 Sampling

The sample related to the present study will basically include the entire population of
Faculties from HPPCL.

5.6 Sample Size

Sample size of 30-40 employees was chosen to represent the total population.

5.7 Limitations of the study

 The time stipulated for the project is very short.
 Relevant papers and documents were not available sufficiently

35
  I am also less experienced in this regard.

CHAPTER –6

DATA ANALYSIS,INTERPRETATION, FINDINGS& SUGGESTIONS

36
6.1 Data Analysis & Interpretation

1)Service in the organization

31.3% of employees are working for 10-15 or more than 15 years and 18.8% of employees
are working for 5-10 or less than 15 years.

2) Arise of conflict after performance appraisal

37
43.8% of employees say that conflict arises sometimes after performance appraisal is made
and 37.8% of employees say conflict arises frequently.

3)Changes after apprasing the performances of employees

63.
8% of employees agree that changes arises after apprasing the performances of employees
anmd 31.3% of employees say that there is no change after apprasing the performances of
employees.

38
4)If any change occurs,then what kind of change is that.

50.0% of employees say that changes are both positive as well as negative and 37.5% of
employees say that it is a positive change,

5)Training & Development

39
87.5% of employees agree that the company provides training & development.

6)Increment after performance appraisal

62.5% of employees accept that they receive increment in there salary after performance
appraisal whereas 37.5% employees doesn;t receive any increment in there slary.

7)Partiality in performance appraisal

40
50.0% of employees say that maybe top level management is partial in performance appraisal
and 37.5% of employees say yes that top level management is partial in performance
appraisal.

8) Opinion about performance appraisal

43.8% of employees are satisfied from the performance appraisal of the company,25.0% are
little satisfied and 18.0% are completely satisfied.

9)Communication of performance

41
 58.
3% of employyes want their performance to be communicated in written form whereas 25.0%
employees want their performance to be communicated to them secrectly.

10) Performance appraisal

In HPPCL performance appraisal is made on yearly basis.

6.2 Findings

42
  Majority 31.3% of employees are working for 10-15 or more than 15 years.
 In HPPCL performance appraisal is made on yearly basis.
 Majority 43.8% of employees say that conflict arises sometimes after performance
appraisal is made.
 Majority 63.8% of employees agree that changes arises after apprasing the
performances of employees.
 Majority 50.0% of employees say that changes are both positive as well as negative.
 Majority 87.5% of employees agree that the company provides training &
development.
 Majority 62.5% of employees accept that they receive increment in there salary after
performance appraisal.
 Majority 50.0% of employees say that maybe top level management is partial in
performance appraisal.
 Majority 43.8% of employees are satisfied from the performance appraisal of the
company.
 Majority 58.3% of employyes want their performance to be communicated in written
form.

6.3 Suggestions
 The performance appraisal system should facilitate career growth &learning of
employees.
 The short coming of employees should be informed to them after performance
appraisal.
 Promotion should be based on performance rather than seniority or another factors.
 Performance appraisal should be appraised by granting awards/ merit certificate.
 The performance appraisal should not be assessed by biased mind and personal
grudge.
 The extent of communication with the top & middle level management. The feedback
to performance appraisal shouldn’t only be given to those employees who are rated
‘below average’ but also to all the employees as it would motivate the employees to
perform even better.
 Gauge the potential for performance of each employee.

43
CHAPTER – 7

CONCLUSION

44
It is truth that no work is completed in itself. In fact, completion of one job is actually the
beginning of another job. Likewise, performance Appraisal is never ending process. It is
essential for personal & professional development.
This project has been considering all possible aspects mentioned in the project booklet. The
project is made very clear and precise with the help of the relevant data gathered from the
company, company website & through various annexure.
In the concluding remark of my project report, I would like to state that at HPPCL,the
employees are considered as most valuable assets & strength for sustained growth &
development of the company. They believe in investing continuously in human resource for
their growth. The company is led by young professionals. They have an open work
environment which is achievement oriented.
In spite of these merits, there are some demerits also in the company that the goals of the
company are not decided in advance and no feedback fixed for workers and executives in
HPPCL.

REFERENCES

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 http://www.hppcl.in
 Essential of HRM and Industrial Relations- P. Subba Rao.
 Aswathappa K, Human Resource & Personnel Management, Tata McGraw- Hill
Publishing Co. Ltd., New Delhi, Sixth edition 2001
 Kothari C.R., Research methodology methods & techniques,
WishwaPrakasanublishing Co. Ltd., New Delhi, Sixth edition 2001.
 Human Resources Management by P.Subarao
 Robinson Kenneth R., “A Handbook of Training Management” (Revised 2nd
Edition), Aditya Books Private Ltd., New Delhi, 1992.
 HRM- C.B. Mamoria and S.V Gankar- Himalaya Publishing
House.

ANNEXURE

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