CONTENTS

CHAPTER – I

INTRODUCTION

CHAPTER – II

COMPANY PROFILE

CHAPTER – III

INTRODUCTION OF PERFORAMANCE APPRAISAL

CHAPTER –IV

PERFORMANCE APPRAISAL AT VISAKHAPATNAM STEEL PLANT LIMITED

CHAPTER –V

ANALYSIS AND INTERPRETATION

CHAPTER –VI

FINDINGS, SUGGESTIONS AND CONCLUSION BIBLIOGRAPHY

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CHAPTER – I
INTRODUCTION:
Appraisal of one individual by another individual is a continuous process and it is Natural phenomenon in human beings. This is constantly done, consciously or unconsciously in our day-to-day interaction, either in family life or in a social setting or in an organization for that matter. While the individual or a group uses appraisal in its own fashion depending upon the need of the situation, in an organization it becomes necessary to adopt a formal methodology of appraisal system because of the requirement of measuring the performance for considering suitable reward or punishment or for assessing the potential of a person to increase the responsibilities. In short, there is a great requirement for assessing the efficiency to gear up the productivity of the work –force.

OBJECTIVES:
The fallowing are the specific objective of the present study. To study the performance appraisal system history and their activities in VSP. • • • • • To study and accesses the executive performance system and effectiveness. To analyze the drive towards quality that is integrated into executive performance appraisal. To study, identify and suggest measures to improve effectiveness specifically from quality perspective. To analyze rationally the influence of emotional intelligence factor on performance appraisal system. To understand the gap between knowledge, skill and attitudes that exist and see how these can be filled by planned guidance and training. • To provide the basis for determination of merit, efficiency and suitability for the purpose of the promotion.

SCOPE OF THE STUDY:

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to know these things visited several departments of VSP. Aswathappa and Subba Rao added to this source of information relating to the system. For the present study of the data has collected by ways from the fallowing ways.  Questionnaire: The questionnaire was personally administrated with respondent in VSP it took nearly 20 minutes for each respondent to fill the questionnaire. LIMITATIONS: The study is how ever subjected to certain limitation. METHODOLOGY: To get information about satisfaction level of employees from performance appraisal system and its effectiveness a stratified sample survey was conducted. files. The responses was given by the respondents were tabulated and a score sheet is prepared. Human resource and personnel management by K. 4 . forms. Organization design.  Organization profile: The general information regarding organization. Performance appraisal in VSP from all these collected through the records. policy statements. steel industries in India. Those departments are: • • • • • Human resource development department Personnel management department Recruitment department Marketing department Legal department etc.To know the function of the organization how they are really functioning how the policies are made and implemented and conveyed to the employees.  Author books: The information relating to the performance appraisal system collected through a study of books.

4. Performance appraisal refers to how well someone is doing the assigned job. To create and maintain a satisfactory level of performance.• The time is a major limitation. therefore. • Performance appraisal is a continuous process in every large scale organization. Appraisals are arranged periodically according to a definite plan. To help the superiors to have a proper understanding about their subordinates. To contribute to the employee growth and development through training. 2. The basic purpose is to find out how well the employee is performing the job and establish a plan of improvement. The study conifers itself only to assistant managers to general managers. Performance appraisal is not job evaluation. 5 . Only the existing system is studies and no attempt has been made to identify and complete new and dynamic performance system due to this constraints. self and management development programs. what range of pay should be assigned to the job. interview techniques through comparing their scores with performance appraisal ranks. Job evaluation determines how much a job is worth to the organization and. The whole study was conducted with in a period of 2 months. • The study does not cover non-executive some executive cadre and chair man and managing director. 5. • • Study is quality perspective has only been qualitative the information gathered in this regard is mostly through information discussion. 3. To guide the job changes with the help to continuous ranking. They are: 1. PURPOSE: Performance appraisal aims at attaining the different purposes. BRIEF DESCRIPTION • • • • Performance appraisal is the systematic description of an employee’s jobrelevant strengths and weaknesses. To facilitate for testing and validating selection tests. To facilitate fair and equitable compensation based on performance.

Originality and Resourcefulness 11. To provide information for making decisions regarding lay off. Area of Interest 13. 7. To ensure organizational effectiveness. CONTENT OF PERFORMANCE APPRISAL: Every organization has to decide upon the content to be appraised before the programme is approved. return on capital. Objectives which measure job related results like amount of deposits mobilized. Creative Skills 12. Initiative 6. Ability to Grasp new Things 9. ii. Judgment Skills 15. Technical Skill 7. Self Expression: Written and Oral 3. Leader ship Styles and Abilities 5. Ability to Reason 10. other measures are based on: i. Traits which are measured in terms of personal characteristics observable in employee’s job activities. through correcting employee for standard and improved performance. cost saving. moments. Area of Suitability 14. Behavior which measure observable physical actions. and suggesting the change in employee behavior. Capability for Assuming Responsibility 6 . Content to be apprised may vary with the purpose of appraisal and type and level of employees. Ability to Work with Others 4. Generally content to be apprised may be in the form of contribution to organizational objectives (measures) like production. etc. iii. Contents to be apprised for an officer’s job: 1. Integrity 16.6. Regularity of Attendance 2. Technical Ability / Knowledge 8. retrenchment etc.

Thoroughness in Job and Organizational Knowledge 20. Knowledge of Systems and Procedures 21. Quality of Suggestions Offered for Improvement Establish Goals For Programme Develop Policies for Feeding Back Data Design physical Facilities Conduct Programme Obtain Top Management Commitment Do Detailed Job Analysis Select Exercises and Participants Define Dimensions to be assessed Design Assessor Trainings Programme Train Assessors Provide Feed Back Evaluate Participants and Centre Against Job Success Criteria 7 . Honesty and Sincerity 19. Level of Acceptance by Subordinates 18.17.

Fig: An Assessment Centre Model Human Performance Performance Appraisal Employee Feedback Performance Measures Performance – Related Standards Human Resource Decisions Employee Records Fig: key Elements of Performance Appraisal Systems 8 .

HUMAN RESOURCE DEVELOPMENT It is well recognized every where that human competency development is essential prerequisite for any growth or development of the organization. Develop their general capabilities so that may be able to discover their own inner potentialities and exploit them to full for their own and organizational development. motivation and pride of the employees. Although development of human beings has been in existence in some from or the other since the beginning of civilization. a planned and systematic approach to HRD in the corporate sector emerged in the later half of the 20th century. • To develop an organizational culture where superior-subordinate relationship.  9 . CONCEPT OF HRD: HRD is the process of helping people to acquire competencies. In an organizational context HRD is a process by which the employees of an organization are helped in a continuous and planned way to: • • Acquire or sharpen capabilities require to perform various functions associated with their present or expected future roles. FEATURES OF HRD: Human Resources Development is planned any systematic approach to the development of the people. It is an organized learning experience aimed at matching the organizational need for human resource with the individual need for career growth and development. Human resource development is a newly emerging field of study. team work and collaboration among different submits are strong and contribute organizational wealth and. Many organizations have set up “HRD Departments” which symbolized the recognition of importance of employee’s competency development.

Human Resource Development is a process not merely a set of mechanisms and techniques    OBJECTIVES OF HRD:  To provide a comprehensive frame work and method for the development of human resource in an organization. retain and motivate talented employees. placement. motivation.  To create a climate that enables every employee to discover. an organization may achieve a saturation point in terms of its growth. Human Resource Development is a continuous process of developing the competencies. HRD is need by every organization that is interested in the fallowing activities. Human Resource Development has both micro and macro aspects. Thus. Human Resource Development is an inter disciplinary concept.  To generate systematic information about human resource for purposes of man power planning. Even to maintain such a saturation level of growth employee competencies need to be sharpened or developed.     Stability itself. succession planning and the like. in order to further both individual and organizational goals. NEED FOR HRD: Competent and motivated employees are essential for organizational survival growth and excellence.  To increase the capabilities of an organization to recruit. develop and use his/her capabilities to a fuller extent. dynamism and effectiveness of employees. Growing Diversifying Renewing itself to become more effective 10 . Over a period of time.

Constantly plan and design new method and systems of developing and strengthening the HRD climate.   Improving its systems and services Change and becoming more dynamic Playing leadership roles FUNCTIONS OF HRD DEPARTMENT: • • • • • • • • Develop a HR philosophy for the entire organization Keep inspiring the line managers to have a consistent desire to learn and develop. Conduct human process research. HRD MECHANISMS The following are the mechanisms of HRD ♦ Performance appraisal ♦ Potential appraisal and development ♦ Feedback and performance counseling ♦ Career planning ♦ Training ♦ Organizational development ♦ Rewards ♦ Employee welfare and quality of work life 11 . Monitor effectively the implementation of various HRD subsystem/ mechanisms. Influence personnel policies by providing necessary inputs to the personnel department/top management. organizational health surveys and renewal exercises regularly. Be aware of the business/other goals of the organization and direct all their HRD effort to achieve these goals. Work with unions and associations and inspire them.

In the HRD system.♦ Human resources information system PERFORMANCE APPRISAL Performance appraisal of some type is practiced on most organizations all over the world. as well as for guidance in improving performance capabilities. sub-ordinates to accept more responsibilities and FEEDBACK AND PERFORMANCE COUNSELLING Knowledge of ones strengths helps one to become more effective. Encourage challenges. CAREER PLANNING: The HRD philosophy is that people perform better when they feel and see meaning in what they are doing. Understand the strengths and weakness of their sub-ordinates and help the subordinates to realize these. corporate growth plans are not kept secret dong-range plans for the organizations are made known to the 12 . to choose situations in which ones strengths are required and to avoid situations in which ones weaknesses could create problems. A HRD oriented performance appraisal is used as a mechanism by supervisions to • • • • • • Understand the difficulties of their subordinates and try to remove their difficulties. These also increase the satisfactions of individual. people do not recognize their strength. Help the sub-ordinates to become aware of their positive contribution. Plan for effective utilization of talents of sub-ordinates. Supervisions in an HRD system have the responsibility for ongoing observation and feedback to subordinates about their strengths and their weaknesses. Often. Help sub-ordinates to acquire new capabilities.

managers and employees who attend in-house or outside training events are also expected to submit proposals concerning any changes they would like to suggest on the basis of their new knowledge. In-house training programs are developed by in-house trainers or consultants hired for the task and periodic assessments are made of the training needs within needs. For some employees (including executive) outside training may be utilized to enhance. innovations and use of capabilities are rewarded in order to encourage the acquisition and application. but also communicate the organization value to the employees. departments. ORGANISATION DEVELOPMENT: The function includes research to ascertain the psychological health of the organization. in fact the employee’s help to facilitate the change. newsletter announcements. TRAINING: Training is linked with performance appraisal and career development. The organizational development or systems experts also help any department or unit in the company that has problems such as absenteeism. Efforts are made to improve organizational health through various means in order to maintain a psychological climate that is conductive to productivity. main and other units within the organization. update to develop specific skill. This is generally accomplished by means of periodic employee surveys. special privileges and desired training rewards may be given to individuals as well as to teams. The training received by employees is thus utilized by the organization. Employees are helped to prepare for change when ever such change is planned. increase in salary bonuses. In HRD systems. or sharing of experience that is not available within the organization. Appropriate rewards not only recognize and motivate employees. equipments. REWARDS: Rewarding employee’s performance and behavior is important part of HRD. 13 . low resistance to change.employees. Employees generally are trained on the job or through special in house training programs. This is especially valuable if the external training can provide expertise.

The HRD staff is very friendly and co-operative. maintenance. disability insurance. HRD IN VISAKHAPATNAM STEEL PLANT (VSP) The VSP has a nice HRD department with talented and experienced staff. Quality of work life programs generally focus on the environment with in the organization includes basic physical amenities such as food and beverage facilities. In order to maintain their work commitment and motivation. It is fallowing more or less all the above mentioned HRD mechanisms. materials or finance in the overall scheme of management action in the company. HRD several management functions. Recreation and aesthetic and psychological and motivational factors such as flexible work hours. the organization must provide some welfare benefits such as medical insurance. In RINL/VSP. the company as its corporate responsibility should create an enabling the best opportunity for self-expression all-round development and fulfillment.EMPLOYEE WELFARE AND QUALITY OF WORK LIFE: Employees at lower in the organization usually perform relatively monotonous tasks and have fewer opportunities for promotion or change. for the development and growth of employees. challenging work and varying degree of autonomy. • People are more than mere resource and therefore. While on the hand HRD should appropriately harness employees potential for the attainment of company objectives on the other. • HRD as a management function will be given a place of strategic priority along with function like production. 14 . freedom to suggest change or improvements. it will be a person with all the respect and sensitivity that are all the respect and sensitivity that is warranted when employees are seen as more than mere ‘instrumentality’. This is particularly true in developing countries. holidays and vacation. PHILOSOPHY OF HRD: • • Employees of the company are its greatest and most valuable resources. • HRD does not refer to training alone or it is just anew name for training.

concern and development approach. decision and actions. Employee competence and crease adequate motivational levels for the application of their abilities to assigned job/roles with required commitment. To foster an appropriate climate and culture which nature.• • HRD should eventually be a core philosophy of all management action and should not remain merely a report mental/sectional activity. Performance appraisal for executives. HRD Objectives: • • To provide initially a suitable match between employee competence levels and company’s work requirements. Human resource information. In plant training for management studies. Membership with professional bodies. Interactions with professional academicians and consultants. • • To work towards enabling the employees and other stakeholders ask self fulfillment even work for the growth and property of the company. Lectures by eminent personalities. • • • • • • • • • Nomination to external programs. Corporate presentation. • To enable employees seek great identification with the company by infusing most management decisions and actions with the requisite care. Organization research and organization development. All functional and divisional heads responsible for various activities of the company will the HRD spirit and suitably integrate HRD into their plans. To utilization enable to employees and the organization to achieve its mission and objective and business goals through HRD. 15 . HRD GROUP-KEY ACTIVITY: • TQM and in-house programs.

CHAPTER – II INTRODUCTION TO STEEL INDUSTRY IN INDIA 16 .

STEEL INDUSTRY: Steel industry is the back bone of all industrial commercial activities. Presently 17 . automobile parts. In this context a number of steel plants were setup. where the steel industry was never expected to generate profit from business. to have machine structure. The steel industry plays a vital role in the growth of nation’s economy. railway materials. The versatility steel can be traced mainly of three reasons. Steel is versatile and indispensable item. The versatility steel has not been there. It has got very good strength coupled with density and malleability. which can be continently and economically produced. The great investment that has gone into the fundamental research in iron and steel technology has helped both directly and indirectly in many modern fields of today’s science and technology. etc. ship fabrication. INDIA’S STEEL SCENARIO: Indian steel industry has always remained isolated and protected by government. pins. To mention a few it is used for such small items as nails. needles etc. but was expected to provide employment to the unemployed. agriculture implements boilers.. Steel is versatile and indispensable item. It would have been very painful to imagine the fate of today’s civilization if steel has not been there. Its properties can be changed over a wide range. • • • It is only metallic item. It alloys easily with many of the common element. Realizing these countries planners have been formulating and updating annual plans for production of iron and steel. Steel is such a versatile commodity that every object we see in our day to day life has used steel either directly or indirectly in its product. in large quantities.

Indian steel industry generates a significant amount of waste materials. The production is growing on properly.7% between 1935 and 2000 A. WORLD’S DEMAND FOR STEEL: The total demand for steel in world is expected to grow at an annual rate of 1. The country’s aim is to sell quality steel. Many techniques are being implemented in the steel industries. The energy consumption per tone is 50-100% higher than that of the international norms. which was raised to 9. 18 . recycle and recovery do not hold much ground in the Indian steel industry.D. Within the controlling plant economy the Eastern Europe erstwhile USSR region may have 0. In the period of pre independence steel production was 1. The Indian companies cannot spend more for pollution control.India is operating with open-hearth furnaces.1 annual growth rate between 184-1994. According to their estimation total demand in advanced industrial countries on a whole is expected to grow at 0.3% annual steel demand growth. The four aspects of “Waste Management” namely.2% rate between 1974 to 1984. which can cause environmental problems. energy and labor in Indian steel industry are much low than developed countries. The existing equipment. This is the present of the bold steps taken by the government to develop this sector. The government is also helping the steel industries in this basis.6% annual rate following a 2.0 million tones of target by the seventies. The production of steel in significant quality started after 1990.0 annual rates up to the end of this century at a 7. Steel demand in china. as per the study concerned by china economists.5 million tones per year.5% annual rate up to 2000 following a 3. North Korea region would grow at 4. The growth of steel industry can be conveniently started by dividing the period into pre and post independent era.residue reprocess. The Indian steel industries have developed a bit in the recent years. steel demand is less developed countries on a whole is expected to grow at a 5.5% per annual growth during 1974-1980. The apparent consumption of steel is shown below. The development of steel industry in India should be viewed in conjunction with the type and system of government that had been ruling the country.

etc. per annum. Formation of TISCO.No 1 YEAR 1830 GROWTH Osier Marshall heathler constructed the first manufacturing plant at port-motor in Madras presidency. TISCO was founded. There is a threat to steel industry from competitive products like plastics. TISCO started production.HIGHLIGHTS OF PRESENT STEEL SCENARIO: • • The world steel shows a low growth demand. aluminum. Jamshediji TATA initiated integrated steel plant. • • Customer oriented approach in view of product oriented approach. Emergence of new technology like scraps preheating. Preference is given to superior quality products and high value item production. • • Developed countries slowly reduced the production of steel. Formation of Mysore iron and steel initiated at Bhadravathi in Karnataka. 19 the scheme for an 2 3 4 5 6 7 1874 1899 1906 1911 1918 1940 . GROWTH OF STEEL INDUSTRY: The growth in a chronological order is depicted below: S. Developing countries like China are planning to produce steel as much large quantity then of present output of 80 Mt. James erskin founded the Bengal frame works. • • India consciously and strategically decides to invest into steel production.

Durgapur. TISCO & TISCO were expanded* Bokaro steel plant came into exiatence. Rourkela steel plant.6 million tons. Annual plan. Progress of Visakhapatanam steel plant picked up and the nationalized concept has been introduced to commission the plant with 30 MT liquid steel capacities by 1990. Second five-year plan – A bold decision was taken up to increase the ingot steel output in India to 6 million tones per year and its production at Rourkela. the first re-based plant at Visakhapatanam took a definite shape. Bhilai and Durgapur steel plant started. Sixth five-year plan – Work on Visakhapatanam steel plant started with a big bang and top priority was accorded to start the plant. At the end of the fifth five year plan the totaled installed capacity from six integrated plants was up to 10. Plants in south are each in Visakhapatanam and Karnataka.50 million tones. Bhilai. Fourth five-year plan – Salem steel plant started. SAIL was formed during this period on 24th January 1973 Fifth five-year plan – The idea of setting up fifth integrated steel plant. Seventh five-year plan – Expansion works at Bhilai and Bokaro steel plant completed. 20 9 1956-1961 10 11 12 13 1961-1966 1964 1966-1969 1969-1974 14 1974-1979 15 16 1979-1980 1980-1985 17 1985-1991 . Durgapur steel plant and TISCO were initiated. Third five-year plan – During the plan the three steel plants under HSL. Licenses were given for setting up of many mini steel plants and re-rolling mills government of India.8 1951-1956 First five-year plan – The Hindustan steel limited (HSL) was born in the year 1954 with decision of setting up three plants each with 1 million tones in got steel per year at Rourkela. Schemes for modernization of Bhilai steel plant. The Erstwhile soviet union agreed to help in setting up the Visakhapatanam steel plant. Capacity at the end of sixth five-year plan from six integrated plants stood 11. TISCO started its expansion program. Recession period – Till the expansion programmes were actively existed during this period.

No Plant Collaboration Capacity of Finished Steel Products West Germany Erstwhile USSR Britan Erstwhile USSR 1 2 3 4 Rourkela Steel Plant Bhilai Steel Plant Durgapur Steel Plant Bokaro Steel Plant S No Plant Collaboration Capacity of Finished Steel Products West Germany Annual Production 7.20.000 Tones 21 . Visakhapatanam steel plant started the production and modernization of other steel plants is also duly engaged. 19 1997-2002 STEEL PLANTS WITH FOREIGN COLLOBORATIONS S.70.000 Tones 3 Durgapur Steel Plant Britain 8.00. Ninth five-year plan – Restructuring of Visakhapatanam steel plant and other public sector undertakings.000 Tones 1 Rourkela Steel Plant 2 Bhilai Steel Plant Erstwhile USSR 7. The cost of plant has become around 8755 crores.18 1992-1997 Eigth five-year plan – The visakhapatanam steel plant was commissioned in 1992.

Another problem faced by the steel industry related to the difficulty in getting zinc supplies for the continuous galvanizing line. GOVERNMENT CONTROL AND PRICING POLICY 22 . our technology in the field of steel production is not a developed one when compared to other advanced countries. South Korea and Malaysia. Rourkela plant is unable to substitute aluminum of zinc for the production of galvanized sheet apart from source internal technical problems.  LACK OF TECHNICAL PROBLEMS: Bhilai had to execute orders for shipment of rails to Iran. regular supplies of raw materials are very much handicapped due to the absence of good transport facilities. Because of technical limitations. Further the industry is unable to get good quality coke and manganese is which the principal raw materials next to iron ore are unfortunately most of our resources of manganese ore are of poor quality besides the non availability of good quality raw material. The modern giant blast furnace needs high-grade iron ore and good metallurgical coal.PROBLEMS OF STEEL PLANT INDUSTRY:  LACK OF RAW MATERIALS: Non-availability of good quality raw material is another problem faced by iron and steel industry.

Since 1941, India steel and iron industry was almost completely state regulated. Both prices and distribution of steel were under control of government. The Govt. decided to remove statutory control over the price and distribution of all, but a few categories with effect from 1st march 26, 1964 the Govt. supervise the steel and iron inducted according to the recommendation of Raja committee. But Raj committee in fixing the steel price didn’t regulate the price of raw materials.

VISAKHAPATNAM STEEL PLANT -A BRIEF PROFILE
INTRODUCTION:
Steel occupies the foremost place amongst the materials in use today and pervades all walks of life. All the key discoveries of the human genius, for instance, steam engine, railway, means of communication and connection, auto mobile, aero plane and computers, are in one way or other, fastened together with steel and with its sagacious and multifarious application. Steel is versatile material with multitude of useful properties, making it indispensable for furthering and achieving continual growth of the economy-be it construction, manufacturing, infrastructure or consumables. The level of steel consumption has long been regarded as an index of industrialization and economic maturity attained by a country. Keeping in view the

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importance of steel, the fallowing integrated steel plants with foreign collaborations were set up in the public sector in the post-independence era. STEEL PLANT 1. Durgapur steel plant 2. Bhilai steel plant 3. Bokaro steel plant 4. Rourkela steel plant FOREIGN COLLABORATION British Erstwhile USSR Erstwhile USSR German

BACKGROUND: Visakhapatnam steel plant
To meet the growing domestic needs of steel, government of India decided to set up an integrated steel plant at Visakhapatnam. An agreement was signed with erstwhile USSR in 1979 for co-operation in setting up 3.4 Mt integrated steel plant at Visakhapatnam. The foundation stone for the plant was laid by the then prime minister on 20th Jan ’71. The project was estimated to cost Rs. 3897.28 Crs based on prices as on 4th quarter of 1981. However, on completion of construction and commissioning of the whole plant in 1992, the cost escalated to around 8500 Cr. Unlike other integrated steel plants in India, Visakhapatnam Steel Plant is one of the most modern steel plants in the country. The plant was dedicated to the nation on 1st august’ 1992 by the Prime Minister, Sri. P.V.Narasimha Rao.

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New technology, large scale computerization and automation etc., are incorporated in the plant. To operate the plant at international levels and attain such labor productivity, the organizational man power has been rationalized. The plant has a capacity of producing 3.0 Mt of liquid steel and 2.656 Mt of saleable steel.  VSP Technology: State-of-the-Art 7m tall coke oven batteries with coke dry quenching. • • • • • • • • Biggest Blast Furnaces in the country Bell less top charging system in blast Furnance. 100% slag granulation at the BF cast house. Suppressed combustion – LD gas recovery system. 100% continuous casting of liquid steel. “Tempore” and “Stelmor” cooling process in LMMM & WRM. Extensive waste heat recovery systems. Comprehensive pollution control measures.

MAJOR SOURCES OF RAW MATERIALS
Iron ore lumps & fines BF Lime Stone SMS Lime Stone BF Dolomite SMS Dolomite Manganese Ore Boiler Coal Coking Coal Water Supply Power Supply Bailadilla, M.P Jaggayyapeta, A.P Jaisalmer, Rajasthan Dubai Madharam, A.P Chipuripalli, A.P Talcher, Orissa Australia Yeluru canal, Andhra Pradesh Captive power plant

MAJOR UNITS AT VSP
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0 MT STAGE) 3 Batteries each of 67 ovens and 7 Mts height 2 sinter machines of 312 Sqm grate area each 2 Furnaces of 3200 cu m volume each 3 LD Converters each of 150 Cum.261 5.000 710 850 850 MAIN PRODUCTS OF VSP Steel Products Angles Billets Channels Beams Squares Flats Rounds Re Bars Wire rods By Products Nut Coke Coke dust Coal Tar Anthracene Oil HP Naphthalene Benzene Toulene Zylene Wash Oil VISION To be a continuously growing world-class company.400 STEEL MELT SHOP LMMM WRM MMSM 3. Volume and six 4 strand bloom casters 4 Stand finishing Mill 2 x 10 stand finishing mill 6 Stand finishing Mill BLAST FURNACE 3.256 UNITS (3.DEPARTMENTS COKE OVENS SINTER PLANT ANNUAL CAPACITY (‘000 T) 2.We shall: 26 .

Achieve excellence in enterprise management. 27 • • • • • • • . Be a respected corporate citizen. MISSION: To attain 10 million tones liquid steel capacity through technological up gradation. OBJECTIVES • Towards growth – Expand the plant capacity to7 MT by 2011-2012 with the mission to attain 10. Towards customers – Promote branding of products for quality and customer preference through customer relations management Towards suppliers – Develop a reliable and strong supplier base and ensure effective supply chain. Upgrade the skills and efficiencies of employees through training and development and maintain high levels of motivation and satisfaction.• • • • • Harness our growth potential and sustain profitable growth. ensure clean and green environment and develop vibrant communities around. and to meet the aspirations of the stakeholders. Towards quality – Promote quality movement in all functions of the company through quality management system. To create an inspiring work environment to unleash the creative energy of people.0 MT capacities in two subsequent phases. operational efficiency and expansion. Towards employees – Make RINL the employer of choice. Adopt latest developments in information and communication technology Towards knowledge management – Become a knowledge based and knowledge sharing company. Deliver high quality and cost competitive products and be the first choice of customers. Towards technology up gradation and productivity – Continuously upgrade the technology and practice benchmarking to achieve international efficiency levels. to produce steel at international standards of cost of quality. Towards profitability – Achieve net profits from 2002-2003 with special emphasis on enhancement of production of value added steels and cost reduction.

believe that our employees are the most important resources. Achieve quality of the products by following systematic approach through planning. conservation of environment and be a good corporate citizen. environment and society – Continue efforts towards safety of employees. documented procedure and timely review of quality objectives. the company is committed to: 28 .• Towards safety. are committed to meet the needs and expectations of our customers and other interested parties. To accomplish this. at Visakhapatnam steel plant. Continuously improve the quality of all materials. processes and products. at Visakhapatnam steel plant. Maintain an enabling environment which encourages team work and active involvement of all employees with their involvement. CORE VALUES • • • • • Commitment Customer satisfaction Continuous improvement Concern of environment Creativity and innovation QUALITY POLICY We. HR POLICY We. To realize the full potential of employees. we will • • • • Supply quality goods and services to customers’ delight.

Encourage team work. responsibility and accountability. Create an environment of learning and knowledge sharing by providing the means and facilities and also access to the relevant information and literature. creativity. efficiency. Fulfill social obligations by providing training to the students of educational institutions and to the trainees of other organizations. Facilitate the employees for continuous development of their knowledge base. are committed to create an organizational culture which nurtures employee’s potential for the prosperity of the organization. self-expression and behavior so that they contribute positively with commitment for the growth and prosperity of the organization while maintaining a high level of motivation and satisfaction. • • • • • MARKETING NETWORK OF VISAKHAPATNAM STEEL PLANT 29 . Establish systems for maintaining transparency. at Visakhapatnam steel plant. Provide inputs to the employees for developing their attitude towards work and for matching their competencies with the organizational requirements. To accomplish this. skills. we will • Identify development needs of the employees on regular basis. fairness and equality in dealing with employees. provide the necessary training and continually evaluate and monitor the effectiveness of training so that the quality of training also upgraded. innovativeness. Provide growth and opportunities for developing skill and knowledge. Empower employees for enhancing commitment. Prepare employees through appropriate development programs for taking up higher responsibilities in the organization. Ensure functioning employees. innovativeness and high achievement orientation. of effective communication channels with HRD POLICY We.• • • • • • Provide work environment that makes the employees committed and motivated for maximizing productivity.

♦ Gold star award for excellent performance in Productivity. 1992-93 & 1993-94. Rajbhasha. environment protection. Spain. ACHIEVEMENTS AND AWARDS OF VSP The efforts of VSP have been recognized in various forms. ♦ Udyog excellence gold medal award for excellence in Steel industry. sports related awards and a number of awards at the individual level. consignment agencies have been contracted. Quality. ♦ EEPC Export Excellence Award: 1994-95. Quality circles. ♦ Golden Peacock (1st Prize) “National Quality Award-96”IIM in the National Quality Competition 1996. safety. In order to be eco friendly Visakhapatnam steel plant has planted more than 3 million trees in area of 35 square kilometers and incorporated various technologies at a cost of Rs. ♦ Steel Ministers Trophy for “Best Safety Performance – 1996”. POLLUTION CONTROL AND ENVIRONMENTAL PROTECTION Elaborate measures have been adapted to combat air and water pollution in Visakhapatnam steel plant. Kolkata.The products are being sold through 35 marketing centers all over the country with four stock yards at Mumbai. Some of the important awards received by VSP are indicated below: ♦ ISO 9002 for SMS and all the down stream units – a unique distinction in the Indian steel industry. ♦ Selected for “World Quality Commitment Award. 30 . MOU. ♦ CII (Southern Region) Energy conservation Award: 1995-96.460 crores and control measures. Chennai and Hyderabad.1997” of J*BAN. ♦ Indira Priya Darshini Vrishka Mitra Award: 1992-93 ♦ Nehru Memorial National Award for Pollution Control. Some of the major awards received by VSP are in the area of energy conservation. And in other places.

♦ Ispat Suraksha Puraskar (First Prize) for longest Accident free period – 199194. ♦ Best Enterprise Award from SCOPE for surpassing MOU targets – 2003-04 ♦ ISTD Award for “Best HR Practices” – 2002 ♦ Prime Ministers Trophy for “Best Integrated Steel Plant” – 2002-03 ♦ “World Quality Commitment International Star Award” in the Gold category conferred by Business Initiative Directions. ♦ ICWAI Award for excellence in Cost Management. Paris ♦ “Organizational Excellence Award” for 2003-04 conferred by INSSAN  RINL has been bestowed with several national accolades in the year 2005-06 significant among them being : ♦ National Energy Conservation Award for the 6th time in succession. WIPS for 2001-02. ♦ Environment Excellence Award from Greentech Foundation for energy conservation in 2002. ♦ Viswakharma Rashtriya Puraskar Award ( 6 out of 32 at the national level) ♦ FAPCCI best Industrial Productivity Award ♦ INSAAN National Award for Organizational Excellence ♦ Best CEO Award The above awards at local regional and national level competitions in the area of quality circles and suggestion schemes etc.♦ Excellence award for outstanding performance in Productivity Management. ♦ Best enterprise award from SCOPE. ♦ SCOPE Award for best turnaround for 2001. Quality and innovation. besides. 31 . ♦ Best Labor Management Award from Government of AP. ♦ National Award for Excellence in Water Management.

cost consciousness. STATISTICAL INFORMATION PRODUCTION PERFORMANCE (‘000 Tonnes) S. latest technology. sophisticated equipment.No 1 2 3 4 5 6 7 8 Year 1998-1999 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 Hot Metal 2510 2943 3165 3485 3941 4055 3920 4153 Liquid Steel 2225 2656 2909 3083 3356 3508 3560 3603 Saleable Steel Labour Productivity (Tonnes /manyear) 161 192 211 228 253 262 265 282 2193 2382 2507 2757 3056 3169 3173 3237 32 . up to date knowledge.Total quality. production with less cost and customer satisfaction have become the hallmark of VSP. high skills.

677 3.433 5.No 1 2 3 4 5 6 7 Year 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 Sales Turn Over 3.406 7.469 Domestic Sales 2.026 Exports 295 322 371 626 768 248 443 FINANCIAL PERFORMANCE (RUPEES IN CRORES) S.037 3.710 4.346 -130 153 400 915 2024 3260 2355 Net Profit -562 -291 -75 521 1547 2008 1251 EXPANSION PLAN: Capacity (MT) Present Future 4.933 8.436 4.COMMERCIAL PERFORMANCE (RUPEES IN CRORES) S.00 6.181 8.081 5.059 6.174 8.122 3.50 Product Hot Metal Additional Facilities envisaged New BF with 3800 Cum Capacity 33 .No 1 2 3 4 5 6 7 8 Year 1998-1999 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-06 Gross Margin 15 252 504 690 1049 2073 3271 2383 Cash Profit .

26 3.50 6.30 New Sinter Plant of 400 Sq.40 0.05 & 1.000T Annum New SBM of 750.M area SMS-2 with Two 50 CuM Converters.2007 As on 28-02-2007 3870 2365 269 55 1181 813 557 18 22 As on 31-03-2007 3860 2362 263 56 1179 814 559 18 22 .000 T/Annum New SM of 700.72 1.65 3.95 - 5.34 1.70 8. Two 6 Std Billet Casters & One 6 std Round Caster -New WRM of 600.000 T/Annum Saleable Steel Wire Road Bars Structural 3.000 T/Annum Seamless Tube plant of 300.30 Seamless Pipes MAN POWER AT GALANCE 2005 – 2006 EXECUTIVES WORKS PROJECTS MINES OTHERS JUNIOUR OFFICERS WORKS PROJECTS MINES As on 31-03-2006 3532 2145 225 54 1108 1105 776 27 22 34 2006 .Charge Sinter Liquid Steel 5.

2008 As on 29-02-2008 4192 2572 276 64 1274 761 563 10 21 167 As on 31-03-2008 4206 2577 275 64 1290 761 564 10 21 166 .OTHERS NON – EXECUTIVES WORKS PROJECTS MINES OTHERS TOTAL WORKS PROJECTS MINES OTHERS 280 11937 10687 68 281 901 16574 13608 320 357 2289 216 11736 10542 64 273 857 16419 13464 351 350 2254 215 11727 10533 64 273 857 16401 13454 345 351 2251 MAN POWER AT GALANCE 2006 – 2007 EXECUTIVES WORKS PROJECTS MINES OTHERS JUNIOUR OFFICERS WORKS PROJECTS MINES OTHERS As on 31-03-2007 3860 2362 263 56 1179 814 559 18 22 215 35 2007 .

NON – EXECUTIVES WORKS PROJECTS MINES OTHERS TOTAL WORKS PROJECTS MINES OTHERS 11727 10533 64 273 857 16401 13454 345 351 2251 11459 10310 61 264 824 16412 13451 347 349 2265 11459 10302 61 263 823 16416 13443 346 348 2279 36 .

his performance should be evaluated. has been trained to do it and has worked on it for a period of time. Performance Appraisal Introduction After an employee has been selected for a job. Performance here refers to the degree of accomplishment of the tasks that make up an individual’s job. Performance Evaluation or Appraisal is the process of deciding how employees do their jobs. It 37 . Performance should be evaluated.III.

2. 3. Exit appraisal •  Exit appraisal is appraising the employee’s performance while he or she is leaving the organization.  Potential Appraisal Potential appraisal is to identify the potential of a given employee to occupy higher positions in the organizational hierarchy and undertake higher responsibilities. Often the term is confused with efforts. normally including both the quantitative and qualitative aspects of job performance. 4. 38 . Organizational perspective From organizational perspective appraisals are of four kinds. It is a systematic and objective way of evaluating both work-related behavior and potential of employees. Advise employees about what they must do to improve their career prospects. They are 1. Help the organization chalk out a suitable succession plan. which means energy expended and used in a wrong sense.indicates how well an individual is fulfilling the job requirements. Update training efforts from time to time. It is a process that involves determining and communicating to an employee how he or she is performing the job and ideally. • • Inform employees about their future prospects. establishing a plan of improvement. Selection appraisal Performance appraisal Potential appraisal Exit appraisal  Selection appraisal Selection appraisal is a method of apprising the skills and competencies required in a candidate to get selected for an organization for the accomplishment of its objectives.  Performance appraisal Performance appraisal is a method of evaluating the behavior of employees in the work spot. Performance is always measured in terms of results.

Definitions: • . normally including both the quantitative and qualitative aspects of job performance. structured system of measuring and evaluation an employee’s job related behaviors and outcomes to discover how and why the employee is presently performing on the job and how the employee can perform more effectively in the future so that the employee. Some of the important features are: 39 . selection for promotions. HEYE • Performance appraisal is a formal. K. Often the terms is confused with effort. In this case the effort expended is high but performance is low. organization. employee’s performance of a job in terms of its requirements. C. Meaning Performance appraisal is a method of evaluating the behavior of employees in the workspot. but may manage to get a poor grade. It indicates how well an individual is fulfilling the job demands. providing financial rewards and other actions which require differential treatment among the members of a group as distinguished from actions affecting all members equally. for purposes of administration including placement.B.GANKAR • “It is the process of evaluating the performance and qualifications of the employees in terms of the requirements of the job for which he is employed.ASWATHAPPA. and society all benefit.MAMORIA & S. A “performance appraisal” is a process of evaluating an . Performance here refers to the degree of accomplishment of the tasks that make up an individual’s job.V.

or should play. First. appraisals should serve a useful career planning purpose by providing the opportunity to review the employee’s career plans in light of his or her exhibited strengths and weakness. Performance appraisal is a continuous process in every large scale organization. and to reinforce the things the subordinate does correctly. if you don’t periodically review your employees performance. The basic purpose is to find out how well the employee is performing the job and establish a plan of improvement. The developmental objectives focus on finding individual and organizational strengths and weaknesses. Second. a pay rise or promotion. his performance needs to be evaluated from time to time. the appraisal almost always affects the employer’s salary raise and promotional decisions. Objectives & purposes Performance appraisal could be taken either for evaluating the performance of employees or for developing them. appraisals play. and if so. it does little good to translate the employer’s strategic goals into specific employees goals. last but not least. The evaluation is of two types: telling the employee where he stands and using the data for personnel decisions concerning pay. In order to find out whether an employee is worthy of continued employment or not. an integral role in the employer’s performance management process. developing healthy superiorsubordinate relations. Appraisals are arranged periodically according to a definite plan.Performance appraisal is the systematic description of an employee’s jobrelevant strengths and weaknesses. Third. and offering appropriate counseling/coaching to the employee with a view to develop his potential in future. Importance There are several reasons to appraise subordinates performance. whether he should receive a bonus. and then train the employees. etc. 40 . promotions. And. the appraisal lets the boss and subordinate develop a plan for correcting any deficiencies the appraisal might have unearthed.

Through discussions with individual employees. the person dong the best job receives the promotion.  Promotion decisions : It can serve as a useful basis for job change or promotion. This approach to compensation is at heart of the idea that raises should be given for merit rather than for seniority. When merit is the basis for reward.  Feedback: Performance appraisal enables the employee to know how well he is doing on the job. The Performance Appraisal Process Performance appraisal is planned. To be useful. It tells him what he can do to improve his present performance and go up the ‘organisational ladder’. employee receives raises based on performance. Managers need performance appraisal to identify employees who are performing at or above expected levels. it helps in minimizing feelings of frustration of those who are not promoted. developed and implemented through a series of steps. Performance appraisal can inform employees about their progress and tell them what skills they need to develop to become eligible for pay raises or promotions or both.Various appraisals of employees serve several useful purposes:  Compensation decisions: It can serve as a basis for pay raises. standards should relate to the desired results of each job 41 .  Training and development programmes: It can serve as a guide for formulating a suitable training and development programme.  Establish performance standards: Appraisal systems require performance standards. Under merit systems. If relevant work aspects are measured properly. a line manager can find out why they perform as they do any what steps can be initiated to improve their performance. which serve as benchmarks against which performance is measured.  Personal development: Performance appraisal can help reveal the causes of good and poor employee performance.

offer coaching and guidance to the appraisee whenever required and reward good results. The appraiser should prepare job descriptions clearly. For this purpose. the appraiser who does the appraisal and the appreaisee whose performance is being evaluated. etc. Performance measures – to be helpful – must be easy to use. This requires the use of dependable performance measures. the next step is to measure actual performance. analyse results objectively. oral reports and written reports. degree of training needed and accidents in a given period. help the appraisee set his goals and targets. statistical reports. performance standards must be communicated to appraisees and their reactions should be noted down right away.  Measure actual performance : After the performance standards are set and accepted. length of service. If necessary. absenteeism. Performance measures may be objective or subjective. Objective performance measures are indications of job performance that can be verified by others and are usually quantitative. and report on the critical behaviors that determine performance. Objective criteria include quality of production. Subjective performance measures are ratings that are based on the personal standards or opinions of those doing the 42 . The appraisee should be vary clear about what he is dong and why he is doing it. Four common sources of information which are generally used by managers regarding how to measure actual performance are personal observation. the ratings used to evaluate performance. Both are expected to do certain things. these standards must be revised or modified. reliable.Criteria for identifying and Writing Good Performance Goals • • • •  What is the task to be accomplished? What will it took like when it is accomplished? When must it be completed? What are the cost considerations? Communicate the standards : Performance appraisal involves at least two parties.

evaluation. Whatever be the consequences.  Supervisors: Supervisors include superiors of the employee. while the other destroys the root of the problem permanently.  Compare actual performance with standards and discuss the appraisal : Actual performance may be better than expected and sometimes it may go off the track. contents to be appraised. standards of contents and who observes the employee while performing a job. Subjective criteria include ratings by superiors. which in turn. there is a way to communicate and discuss the final outcome. The general practice is that immediate superiors appraise the performance. The appraiser should be capable of determining what is more important and what is relatively less important. 43 . and not verifiable by others. is turn. one puts out the fires immediately. He should prepare reports and make judgments without bias. is reviewed by the departmental head/manager. subordinates. employees themselves and users of services and consultants. Immediate action sets things right and get things back on track whereas the basic corrective steps seek to find our how and why performance deviates. and socio-cultural values of the environment. It has serious emotional overtones as it affects the self-esteem of the appraisee. This is not the case with middle level positions that are complex and vague. peers. Typical appraisers are: supervisors.  Who will Appraise? The appraiser may be any person who has thorough knowledge about the job content. overall goals. other superiors having knowledge about the work of the employee and departmental head or manager. if necessary : Corrective action is of two types.  Talking corrective actions. The assessment of another person’s contribution and ability is not an easy task. It should be noted here that objective criteria can be laid down while evaluating lower jobs which are specific and defined clearly. Any appraisal based on subjected criteria is likely to be questioned by the appraisee and leave him quite dejected and unhappy when the appraisal turns out be negative.

However. they are accountable for the successful performance of their subordinates. the HR department provides advice and assistance regarding the appraisal tool to use. In some firms. The HR department serves a policy making and advisory role. immediate supervisors may emphasis certain aspects of employee performance to the neglect of others. HR prepares detailed forms and procedures and insists that all departments use them. the immediate supervisor will continue to evaluate emoplyee performance till a better alternative is available. Organisations. HR is also responsible for training supervisors to improve their appraisal skills. for ensuring that the format and criteria being measured comply with EEO laws and aren’t outdated. Also. to the company. Supervisors must therefore be familiar with basic appraisal techniques. and a supervisor who rates his her employees too high or too low is ding a disservice to them. and know how to conduct appraisals fairly.This is because supervisors are responsible for managing their subordinates and they have the opportunity to observe.  Peers: Peer appraisal may be reliable if the work group is stable over a reasonably long period of time and performs tasks that require interaction. will seek alternatives because of the weaknesses mentioned above and a desire to broaden the perspective of the appraisal. Sometimes other supervisors. However. Generally. direct and control the subordinate’s continuously. managers have been known to manipulate evaluations to justify their decisions on pay increases and promotions. but leaves final decisions on procedures to operating division heads. no doubt. who have close contact with an employee’s work also appraise with a view to provide additional information. Finally. The supervisor-not HR-usually does the actual appraising. HR is responsible for monitoring the appraisal system and. The Supervisor’s Role Appraising performance is both a difficult and an essential supervisory skill. and to him-or herself. understand and avoid problems that can cripple appraisals. Whatever research was done on this topic was mostly done on military personnel at the management or pre-management level rather than on 44 . On the negative side. Moreover. particularly. little research has been conducted to determine how peers establish standards for evaluating others or the overall effect of peer appraisal on the group’s attitude.

they are to a great extent.  Subordinates: The concept of having superiors rated by subordinates is being used in most organization today. consultants are trained and they observe the employee at work for sufficiently long periods for the purpose of appraisal In view of the limitations associated with each and every method discussed above. 45 . several organizations follow a multiple rating system wherein several superiors separately fill out rating forms on the same subordinate. However. employees who appraise their own performance may become highly motivated.  Self-appraisal: If individuals understand the objective they are expected to achieve and the standards by which they are to be evaluated. The rating of leaders by combat soldiers is an example. provided the relationships between superiors and subordinates are cordial. speed in doing the job and accuracy can be better judged by the customers or users of services. a teacher’s performance is better judged by students and the performance of a conductor of a bus is better judged by passengers. the fear of reprisal often compels a subordinate to be dishonest in his ratings. the whole exercise could degenerate into a popularity contest. For example. In this situation. Subordinates ratings in such causes can be quite useful in identifying competent superiors. students evaluate a professor’s performance in the classroom. in the best position to appraise their own performance. Though useful in universities and research institutions. in most US universities. The results are then tabulated. Also. Such a novel method can be useful in other organisational settings too.  Users of services: Employees’ performance in service organizations relating to behaviors. consultants may be engaged for appraisal when employees do not trust the supervisory appraisal and management does not trust the self-appraisal or peer appraisal or subordinate appraisal. especially in developed countries. For instance. since employee development means self-development. paving the way for the impairment of work relationships. promptness. this approach may not gain acceptance in traditional organizations where subordinates practically do not enjoy much discretion.employees were to be evaluated by their peers.  Consultants: Sometimes.

identifies the points of consensus. Thermax.. for example. The presence of a facilitator also acts as a buffer. the variations may be caused by the degree of precision attempted in an evaluation. There is little agreement on the best method to evaluate managerial. Wipro. professional or salaried performance. The traditional methods lay emphasis on 46 . Infosys. However. Techniques for appraising Performance Several methods and techniques of appraisal are available for measurement of the performance of an employee. Methods. Corporations like GE. they differ in the sources of traits or qualities to be appraised. Second. the 360-degree feedback comes from multiple sources. factory workers. supervisor and customers.. Finally. and provides feedback to the appraisee so as to overcome the weaknesses as identified in the appraisal. system collects performance information from multiple parties. The role of HR department in 360-degree appraisal in that of facilitator. viz. Mafatlal Group etc. every six months annually  360-Degree Feedback System A 360-degree feedback. including one’s subordinate’s peers. say. preventing the appraisee from attacking those who provided honest inputs. Although originally developed as a fact-finding and self-correction technique. executives or salesmen. Third. they differ because of the different kinds of workers who are being rated. statistical requirements and the opinions of the management. Thomas Cook. NTPC. When to Appraise? Informal appraisals are conducted or whenever one the supervisor or personnel managers feel it is necessary.  Role of HR Department in 360-degree Appraisal. First. Reliance. they may differ because of the methods used to obtain weightings for various traits. systematic appraisals are conducted on a regular basis. Crompton Greaves. SBI. The department also devises action plans for overcoming those weaknesses. The department consolidates the appraisal inputs. The qualities may differ because of differences in job requirements. The methods and scales differ for obvious reasons. are all using this tool to discover home truths about their mangers. Aditya Birla Group.

dependability. industry. creativity. leadership. Under it. It attempts to correct a rater’s tendency to give consistently high or consistently low ratings to all the employees. especially for counseling and development purposes. These scores indicate the worth of every individual. These traits are then evaluated on a continuous scale. •  Traditional Methods Graphic or Linear Rating Scale: This is the most commonly used method of performance appraisal. wherein the rather places a mark. potential. A ready comparison of scores among the employees is possible. organizing ability etc. creative ability. The rating-scale method is easy to understand and easy to use. and co-ordination. According to Jucius. intelligence. newer methods place more emphasis on the evaluation of work results-job achievements-wothwhile. regularity of attendance. Forced Choice Description Method: This method was evolved after a great  deal of research conducted for the military services during World War II. when ratings are objectively given. dependability. etc. loyalty. The rater is asked to indicate which of the four phrases is most and least descriptive of the employee. decisiveness. In the employee contribution are included the quantity and quality of work. the responsibility assumed. The use of this method calls for objective reporting and minimum subjective judgment. leadership offered. analytical ability. On the other hand. judgment. drive. emotional ability. these factors are: employee characteristics and employee contribution. the rating elements are several sets of pair phrases or adjectives relating to job proficiency or personal qualification. a printed form. one for each person to be rated. enthusiasm. they can provide useful feedback. integrity. 47 . It is the most common evaluation tool in use today. leadership. Besides. In employee characteristics are included such qualities as initiative. attitude. such as initiative.the rating of the individual’s personality traits. co-operativeness. specific goals achieved. Somewhere along a continum. versatility. attitude towards superiors and associates. and permits a statistical tabulation of scores. Under this method. responsibility.

while the other two are relatively unfavorable. most of the raters become irritated with the tests because they are not being trusted. Further. And most managers do not like to “rate in the dark. The favorable terms earn a plus credit.The following statements are illustrative of the type of statements that are used: Makes little effort and individual instruction. However. Again. temperament. the rater is unable to introduce personal bias or halo effect. This system is used to eliminate or minimize raters’ bias. The method has certain drawbacks such as while choosing two statements from each series. Is dishonest and disloyal. Is punctual and careful. This increases the overall objectivity of this method. this method is not clearly superior to traditional rating methods. he also does not know how ‘high’ or ‘low’ he is evaluating the individual because he has no access to the scoring key. such tests are expensive to develop. as only one of the favorable and of the unfavorable phrases in each series is related to success or failure on the job.  Forced Distribution Method: This method was evolved by Joseph Tiffin after statistic work. Finally. the results of evaluation do not prove useful for counseling and training purposes because the rater is ignorant of how he is evaluating the individual. Is overbearing and disinterested in work. while unfavorable terms get no credit. Has a cool. Organizes the work well. In each illustration above. Lacks the ability to make people feel at ease. two of the above phrases are relatively favorable terms. Trained technicians are required to prepare sets of series for each occupational group. even. so that all personnel may not be placed at the higher end or at the lower end of the 48 .” Further. because of the particular job and company. Is a hard worker and co-operative. The employee also gets plus credit if one of the negative phrases is checked as being least characteristic.

 Weighted checklists: A variation of the checklist is the weighted checklist. Under this system. It requires the rater to appraise an employee according to a pre-determined distribution scale. the method is highly simple to understand and very easy to apply in organizations. or subordinates. then.  Behaviorally anchored rating scales. but its use in wage administration leads to low morale and low productivity. This process can be expensive and the time consuming. a five-point performance scale used without any descriptive statement. A series of questions are presented concerning an employee to his behavior. The weight is the average score of the raters prior to use of the checklist.  Checklist: Under this method. The value of each question may be weighed equally or certain questions may be weighed more heavily then others. Checklists and weighted checklists can use by evaluators who are superiors. this method tends to eliminate or reduce bias. he supplies reports about it and the final rating is done by the personnel department. Second. Supervisors and HR specialists familiar with the jobs to be evaluated prepare a long list of descriptive statements about effective and ineffective behavior on jobs.scale. The good point of this system is that by forcing the distribution in this manner. The supervisors or other raters receive the checklist without the scored and check the items that apply. Thirdly. Third. it is performance and promotability. and weigh a number of statements about employee characteristics and contributions. the rater does not evaluate employee performance. peers. a separate checklist must be developed for different classes of jobs. the problem of different appraisers using different parts of the scale is avoided. For this purpose. checks to indicate if the answer to a question about an employee is positive or negative. This method suffers from bias on the part of the rater because he can distinguish positive and negative questions. this process is similar to the critical incident process. Employees are placed between the two extremes of ‘good’ and ‘bad’ job performances. Secondly. Smith and Kendall developed what is referred to as the behaviorally anchored rating scale (BARS) or the behavioral 49 . The employee’s evaluation is the sum of the scores on the items checked. analyse. The rater. it is difficult to assemble. as with an unweighted checklist.

but in most cases there are guidelines on the topics to be covered. Each rate is then rated on the dimensions.  Essay evaluation: In the essay technique of evaluation. However. the essay is combined with another forma such as a graphic rating scale. the purpose of the essay.expectation scale (BES). the essay can be open-ended. There is criticism about the accuracy and relevance of essay evaluations. an evaluator can specifically address the ratee’s achievements in this area. or discusses additional dimensions that are not on the scale. Ratings are fed back using the terms displayed on the form. The BARS approach relies on the use of critical incidents to serve as anchor statements on a scale. In this case. it should be noted that usually two to four days are needed to develop a BARS. The dimensions are anchored with positive and negative critical incidents. and in an organization that emphasizes customer satisfaction. However. peers. 50 . The exact construction of a BARS is too complex for presentation here. The essay method can be used by raters kwho are superiors. The result of the developmental work is a jargon-free rating scale that is closely related to the requirements of a given job. In both these approaches.” A BARS usually contains the following features: Six to ten performance dimensions are identified and defined by raters and ratees. elaborates on some of the ratings. A BARS rating from usually contains 6 to 10 specifically defined performance dimensions. In some organizations the essay technique is the only one used. the rater may be asked to describe the strong and weak aspects of the employee’s behavior. they do offer flexibility. each with five or six critical incident “anchors. and so on. in others. the essay summarizes the scale. or subordinates of the employee to be evaluated.

The essence of this system is that it attempts to measure workers ‘performance of the ratee’s job. (ii) The recording of incidents is a chore to the supervisor and may be put off and easily forgotten. learning ability. Feedback is provided about the incidents during performance review session.” The supervisor keeps a written record of the events that can easily be recalled and used in the course of periodical or formal appraisal. and He improved the design of the internal material requisition form. These include: (i) Negative incidents are generally more noticeable than positive ones. Feedback is provided about the incidents during performance review session. a materials manager may be trained to look for and recognize performance: He treated a salesman in a markedly discourteous fashion. He rejected a bid that was excessively over-priced. (iv) Managers may unload a series of complaints about incidents 51 the following critical incidents in a purchasing agent’s . precision in work. The collected incidents are then ranked in order of frequency and importance. this method has significant limitations. He persuaded a local vendor to stock a particularly important material needed by the firm. He failed to return an important phone call. The basis of this method is the principle that “there are certain significant acts in each employee’s behavior and performance which make all the difference between success and failure on the job. However. To give an illustration. judgment. He helped a buyer to prepare an unusually difficult purchase order. responsibility and imitative. These events are known as critical incidents. productivity. requirements for employees. These critical incidents are discovered after a thorough study of the personnel working on a job. Various behaviors are recorded under such categories as the type of job. Critical Incident Method: This method was developed following research conducted by the armed forces in the United States during World War II. (iii) Very close supervision may result. which may not be to the linking of an employee.

While they differ in some ways. Some raters are by temperament. Hence. Consequently the real message is lost. some raters play favourites. overtly harsh and give low ratings to all subordinates. Others are too lenient and give everyone a good rating. three techniques that compare one employee’s performance with that of one or more others will be discussed. ranking ask a supervisor to generate a list of subordinates in order on some overall criterion. Using more raters or endorsements by a superior reduces rater bias and increases validity of appraisals. and most managers are even not properly trained to conduct evaluation and performance interviews. Others have little effect on poor workers because they tend to sugar-coat their criticisms. all three of these techniques yield a similar kind of information: a list of employees ranked from best to worst. This can be very difficult to do if 52 . General Demerits in Traditional Techniques Many of the above traditional performance evaluation techniques have internal weaknesses.  Ranking: In their simplest form. Some managers discourage good performance by over-emphasising shortcomings and almost neglecting good work. some are victims of ‘halo’ effect. They have very vague notions of the purpose of evaluations. In this section. the methods of performance evaluation described so far are supposed to be used for evaluating employees one at a time-with no direct comparisons between employees. Rater’s personality also plays an important part in the effectiveness of evaluation programmes. they do a poor job. Multiple-Person Evaluation Methods By design. The feedback may be too much at one time and appear as a punishment.during an annual performance review session. Managers generally are not qualified to assess personality traits. The relative status of raters in their organization is a factor that is important to the validity of performance appraisal.

It would be true in an organization whether a supervisor is told by the company to use a particular distribution. the paired comparison method presents the supervisor with a series of cards. Rather than asking the supervisor to rank everyone at once. Ford Motor has used a forced distribution grading system that resulted in many complaints. A supervisor with all exceptional subordinates will necessarily have to rate some poorly. The rater is asked to rate employees on the basis of some organizationally determined. followed by the second worst. The supervisor is then asked to choose which of these two persons is the higher performer. For the technique to work properly.the supervisor is asking to rank a large number of subordinates – over 20. then the bottom employee next. Because of this difficulty. A variation of forced distribution is the point allocation technique (PAT). she or he must rank each person one at a time. The final ranking is then determined by counting how many times a given employee was chosen as the better performer across all of the comparisons. a supervisor with mediocre subordinates will have to rate some highly. In this approach. a variation of simple rankings is alternative rankings. each rater is given a number of points per employee in the group to be evaluated. Forced distribution and PAT are most likely to used by superiors but could by used by peers or subordinates. and the total points for employee’s times the number of employees evaluated. preexisting distribution of categories. especially when there are many people to rank. Then the second best is chosen.  Forced distribution: The forced distribution system is similar to grading on a curve. against all other persons to be ranked.  Paired comparison: This approach was designed to make the ranking process easier for the supervisor and perhaps more reliable. The points are allocated on a criterion basis. each of which contains only two subordinates’ names. say. This process is followed until all persons have been ranked. only the performance of these two individuals is beings considered. 53 . In this way. In PAT. Thus. The HR Journal discusses the Ford Motor informal system. every possible pair of subordinates must be presented to the supervisor. Also. the evaluators pick the top employee first. it is much easier for the supervisor to rank the best and worst employees in a reliable way then it is to rank the average ones.

Checklists are common. and MBO. such as forced choice. and comprehensive. Which Technique to Use Perhaps you now feel overwhelmed by the large number of evaluation techniques. critical incident. organize. Studies show that other methods. By setting objectives through participation or by assignment from a superior. clear. Ranking are 54  . the subordinate is provided with a course to follow and a target to shoot for while performing the job. a method by which managers and subordinates plan. too. MBO is more than just an evaluation program and process. It is viewed as a philosophy of managerial practive.Management by Objectives In most of the traditional performance evaluation systems. challenging. encouraging session. Studies indicate that the essay method is also widely used. Dates for reviewing intermediate progress are agreed upon and used. after consulting with the subordinate. usually as part of graphic rating scale form. The graphic rating scale is the most widely used technique. the rater is placed in a difficult and somewhat antagonistic role. and debate. A final evaluation by the superior is made and a meeting is held with the subordinate in a counseling. Because performance evaluation is used for making important decisions that affect employees. Usually. The superior and subordinate make any required modifications in the original objectives. combined are used by only about 5 percent of firms. communicate. The superior. You should know that not all of them are used very often. BARS. such as the following: The superior and subordinate conduct meetings to define key tasks of the subordinate and to set a limited number objectives (goals). an MBO program follows a systematic process. establish the criteria for assessing the accomplishment of the objectives. the raters judge past performance and attempt to report their judgments using one of the techniques described above. control. The participants set objectives that are realistic.

more general arguments are provided. Some of these limitations are common to all of the techniques. not production and office personnel. professional. Subjective bias and favoritism are real problems that create opposition to most performance evaluation systems. The rater is more critical that the technique in developing effective evaluation systems. Employees who are not evaluated in the top performance category experience a reverse motivation effect: They. Raters especially have problems with reaching decisions about the performance levels of employees. and other. and technical employees.used by 10 to 13 percent of employers. strengths. Which techniques should be used in a specific instance? The literature on the shortcomings. Potential Problems in Performance Evaluations Regardless of which technique or system is chosen. reliabilities. Managers and employees dislike the evaluation process. those who oppose the use of formal performance evaluation systems argue that They focus too much attention on alleviating symptoms of poor performance rather than identifying the underlying causes. Opposition to Evaluation Most employees are wary of performance evaluation. MBO is most likely to be used for managerial. while others are more frequently encountered with certain ones. however. These fears are hidden. slow down (employee problems) System Design and Operating Problems 55 . None of the techniques is perfect. studies show that that each technique is sometimes good and sometimes poor. For example. In essences. there are going to be many problems encountered in its use. Untrained raters or raters who have little talent or motivation to evaluate will can destroy or hamper any evaluation technique. Perhaps the most common fear is of subjectivity on the part of the rater. they all have limitations. The major problems are not with the techniques themselves but with how they are used and by whom. and validities of each of the techniques is vast.

” This if often because they have not been adequately trained or have not participated in the design of the program. or on personality traits rather than performance. good. the technique used is cumbersome. or what Douglas McGregor called “playing God. the evaluation may not be will receive written analysis. The design can be blamed if the criteria for evaluation are poor. “Recency of events” error. and checklists. Contrast effects. satisfactory. The halo effect At one time. Rater Problems Even if the system is will designed. If this is the problem. or the system is more form than substance. both of which many managers resist. If only one rater is used. Finally. Halo effect. Standards of evaluation. adequate. Top management’s support for performance evaluation can remedy this problem of ritualism. the evaluation can be distorted. Inadequate training of raters can lead to series of problems in completing performance evaluations. Central tendency error. If the criteria used focus solely on activities rather than output (results). critical incidents. Supervisors may not be comfortable with the process of evaluation. and excellent may mean different things to different evaluators. Problems with evaluation standards arise because of perceptual differences in the meaning of the words used to evaluate employee. it was believed that halo errors in ratings were the major problem in performance evaluation. Some supervisors use the system. but others just haphazardly fill out the paperwork. Personal bias (stereotyping. including: Problems with standards of evaluation.Performance evaluation systems break down because they are poorly designed. problems can arise if the raters are not cooperative and well trained. Thus. Halo error occurs when a rater assigns 56 . another technique can be chosen. “similar to me”). some systems are not online and running. This difficulty arises most often in graphic rating scales but may also appear with essays.

it offers little information for making HRM decisions regarding compensation. when the performance of an average employee is evaluated immediately after the performance of an outstanding employee. Thus. imagine that our computer programmer deserve high ratings on the three dimensions of performance other than programming. For example. This sometimes stimulates raters to use less central. Raters forget more about past behavior than current behavior. Contrast effects Recall that with the individual performance evaluation techniques each employee is supposed to be rated without regard to other employees’ performance. Raters must be made aware of the importance of discriminating across ratees and the use of evaluation. then a conrtrast effect has occurred. suggests that supervisors have a very difficult time dong this. `Central tendency error A central tendency error occurs when a rater avoids using high or low ratings and assigns average ratings. the supervisor might end up rating the average persons as “below average” or “poor. many persons are evaluated more on the results of the past several weeks then on six months average behavior.” Contrast effect can also occur when a supervisor unknowingly compares employee’s present performance with their past performance and this comparison affects ratings.ratings for several dimensions of performance on the basis of an overall general impression of the rate. which occurs when uniformly high or low rating across different aspects of performance are actually justified by the ratee’s performance. Those who have been poor performers in the past could get rated 57 . Some evidence. A problem with understanding and dealing with halo error is that the ratings represent an error only if they are not justified. training. they could represent an accurate evaluation. however. “Recency of events” error One difficulty with many of the evaluation systems is the time frame of the behavior being evaluated. In other words. That is. promotion. Even though the manager was basing the ratings on a general impression. If a supervisor lets another employee’s performance influence the ratings that are given to someone else. or what should be fed back to ratees. it is important to realize that there is a difference between halo errors and true halo. Thus. This is called a “recency of events” rating error.

In other words. more recent efforts to improve performance evaluations in organizations have centered on helping raters to more accurately observe. as more information about employees’ performance is gathered. Or some supervisors might try to “play favorites” and rate people they like higher than people they don’t like. researchers began to concentrate more on the rating process. However. Some can be conscious. Other personal bias errors are more subtle. There are several kinds of personal bias errors. Personal bias errors have been detected in many studies of performance evaluation. this type of error seems to dissipate over time. recall. For example. But when such scales didn’t demonstrate any consistent superiority over other rating formats.” Contrast effects are another rating problem that is difficult to eliminate. but even small effects for characteristics such as sex. Eliminating Rater Errors As mentioned earlier. Thus. behavior-based rating scales were originally designed to help eliminate the kinds of rating errors just described. an error sometimes occurs when a rater gives a higher rating because the ratee has qualities or characteristics similar to rater’s. “trait” ratings seem to be more strongly affected than “outcome” ratings by personal biases such as liking. such as blatant discrimination against someone because of sex or race.“above average” if they improve their performance. age. Moreover. even if the improvement actually only brings their performance up to “average. The effect of these errors is generally small when supervisors have adequate performance-related information upon which to base ratings. and race are cause for concern. and the supervisor might be totally unaware of them. Research indicates that personal linking can affect the attributions a manager makes about a subordinate’s level of performance as well as the kind of feedback that he or she will give. Fortunately. 58 . errors associated with ratees sex and race do occur. and report behavior. Personal bias error A personal bias rating error is an error related to personal bias held by a supervisor. organizations should attempt to eliminate even small effects for these characteristics.

One way to help foster understanding about the system is to allow employees to participate in its development. especially for purpose of facilitating performance evaluation discussions with a supervisor. The post appraisal interview helps both parties to 59 . The employee gets useful feedback information about how effectively and efficiently he is able to discharge the assigned duties. Appraisal Interview and Feedback The post appraisal interview is an essential part of the performance appraisal system. etc. rating methods. the traits and behaviors he has taken into account for appraisal. standards. internal and external causes for low level of performance. the employees must understand it and feel that it is a fair way to evaluate performance. they must believe that the system is used correctly for making decisions concerning pay increases and promotions. He can utilize this opportunity to offer constructive suggestions. It can also be helpful if they are trained in performance evaluation methods so they can better understand how difficult the process can be. The system should also be implementing in a way that fully informs employees about how it is going to be used. It also gives the opportunity to the employee to explain his views about the ratings. Thus. The appraiser gets a chance to explain the employee his rating. unless raters are motivated to use the system effectively and unless they are given the opportunity to observe their subordinates performance errors. Self-evaluation can be a useful addition to an evaluation system.Rater training One popular way to improve manager’s ability to conduct effective performance appraisals is through rater training programs. for a performance evaluation system to work well it should be as simple as possible-unnecessary complexity in rating forms or other evaluation procedures can lead to dissatisfaction among employees. In addition. Training alone will probably not solve all the problems of performance appraisal. Avoiding Problems with Employees For the evaluation system to work well. and help guide and coach the employee for his advancement.

serves to meet the following objectives.review standards. To strengths the superior-subordinate working relationship by developing a mutual agreement of goals. This type of appraisal interview is more appropriate for new and young employees who are inexperience’s. and (3) draw a plan of improve for him. The basic advantage of this interview is that it creates good relationship between the interviewer and the employee. To plan opportunities for development and growth. It. and want the advice of the superior. feel insecure. It helps in developing employee-centric orientation in the organization. (2) gain the employee’s acceptance of the appraisal. the interview is dividing into two parts. the first part covers the strong and weak points of the employee’s work performance. The basic purpose of this interview is to: (1) let the employee know how well he is dong. the employee develops a favorable attitude towards the superior. 60 . thus. The basic objective of this interview is to communicate the appraisal results to the employee and then listen to his reactions sympathetically. and the second part is used to thoroughly explore the employee’s feelings about the appraisal and its results. Tell and Listen Interview . Tell and sell interview. To help employees do a better job by clarifying what is expected of them. and set new standards based on the experience gained. To let employees know where they stand. The basic assumption behind providing appraisal feedback in this manner is that employees have some deficiencies and they need to be convinced about these deficiencies and how appraiser’s suggestions for improvement are relevant for overcoming the deficiencies. For this purpose. To provide an opportunity for employees to express themselves on performancerelated issues.

In this context. the emoloyee tends to understand his job requirements better and develop actions that are in tune with meeting those requirements. ability. and implementing hose action on continuous basis. and motivation result into a constant level of performance. In this view. in order to overcome those problems. Performance Counseling In the present era of performance appraisal. The traditional method of performance improvement focuses on incremental improvement. the basic objective is not just to communicate the appraisal results to the emoloyee but to invite him how he sees the problem and what actions he feels necessary. Though feedback is basically a mechanical term but it is being used in social sciences quite frequently. In this interview. that is the managers assume that environment. Performance counseling is an interactive process between the employee and his counselor to anticipate the likely problems in job performance. The interviewer stimulates the employee to think about improving his own performance improvements suggested by the employee. sports psychology has been used quite successfully in business to illustrate how counseling can be used for effective performance. the focus has been shifted from performance measurement to performance development so that there is continuous improvement in performance. defining proactive actions to overcome those problems. As contrast to this premise. the premise of continuous performance improvement is that performance can be increased constantly by aligning those forces in tandem that affect performance. In a mechanical context. for example. performance increases in a step-by-step fashion-plateaus of flat performance are followed by sharp increases. A logical extension of this assumption would be that performance will increase when environment. Appraisal Feedback Appraisal feedback is an important element of performance management. thermostat 61 . In recent years. performance counseling or coaching has emerged as a new tool. feedback implies providing information to system to monitor its performance and taking corrective action to maintain steady equilibrium. Though this process.Problem-solving Interview . ability. or motivation improves. in refrigeration system.

To provide opportunity to the employee to comment on the appraisal conducted by others on his performance. an individual’s self-perception involves knowing “where he stands in terms of his performances efficiency”. Appraisal feedback must be provided to employees to enhance their self-perception. 62 . “what his strengths and weaknesses are”. “to what extent. When appraisal feedback is not provided at all. appraisal feedback has the following objectives: To bring more clarity in the role of an employee. To enable the employee to go for career planning based on reality of the situation.pro0vides information about when the cooling process should be on or off to maintain temperature at a given level. To encourage the employee to set the goals and actions for his further development. The superior should counsel the employees about his performance and the methods of improving it. there is a need for providing feedback to an individual to enhance his self-perception. the reason for the same. This false self-perception hinders his performance and further growth. To provide opportunity to release his tension and share his anxiety caused by appraisal system. To provide the employee with an opportunity to realize his strengths and weaknesses. and “how he can improve himself further”. Similar concept is applied in the case of performance appraisal system. and for and the methods of improving the performance. achievements and failures so that the gets a deeper insight of himself. Conclusion After the performance of the employees is appraised. In the context of performance appraisal. Self-perception is the process of understanding oneself. Therefore. From this point of view. the superior should inform the employee about the level of the his performance. he is able to use his capabilities”. or not provided properly the individual tends to develop false self-perception as he tends to see him as he wishes rather than what the really is.

Performance counseling can be done in the form of performance interview by superior. Thus. the purpose of counseling is to help the employee aware of his own performance. opportunities available for performance development and the threats in the form of technological change etc. systematic intervention in the life of an individual who is capable of choosing the goal and the direction of his own development. At the end data entry can be complete by the HR department for further purposes 63 . his strengths and weaknesses.Counseling is a planned.

The Human resource department sends the appraisal forms to the concerned departments after duly filling in the staff details.   Who should appraise: The immediate superior of the employee not below the Assistant Manager cadre shall be the Reporting Officer. In case the employee is directly working under the supervision of any officer higher.CHAPTER – IV PERFORMANCE APPRAISAL AT VISAKHAPATNAM STEEL PLANT LIMITED COMPONENTS When to appraise: Performance appraisal across all levels at Visakhapatnam steel plant Limited is conducted twice in a year. PROCEDURE: The Human Resource department prepares appraisal forms for each and every category of employee and at the start of the appraisal period. it sends these forms to the concerned departments after filling in the necessary details of the employee to be appraised which is called ‘background information’. 64 .

point scale for each factor is used for rating.The staff should have worked at least for a period of 6 months to be appraised by an officer... may decide to discuss the appraisal with the employee himself but in the presence of the Reporting officer. which will be final. The personnel department will then check the appraisal report for irregularities and any adverse entries against any of the employee made by the reporting officer will be communicated to the employee in a 65 The reviewing officer for further . promotion etc. After the discussion with the employee. In case the appraise reports to more than one Reporting officer in an appraisal year. in certain cases. The complete appraisal report is then sent back to the personnel department in a confidential cover. The assessment an employee is primarily governed under a 2 . where the assessment is subject to concurrence of the Consenting Authority. the same shall be put to the reviewing officer who after careful scrutiny of the appraisal will pass his remarks.tier system that is assessment by the Reporting officer as well as by the Reviewing officer. The assessment done on the basis of certain attributes / factors which help in defining the job requirements of a particular job. on transfer. Once the reporting officer gives his rating and comments if any. to the reviewing officer. he can advice the reporting officer to discuss the appraisal with the employee or.point scale or a 10 . Later these are discussed with the employee to know his reaction. which are communicated. The personnel department would forward the appraisal forms to Reporting officers concerned for the period. the appraise reports to them. The reporting officer after rating the employee on various attributes will give his remarks. After the Reviewing officer’s comments are given and duly signed by him. comments later scrutinizes these. Usually a 4 . the reporting officers give his final remarks and his suggestions for improvement of the employee performance.

confirmations. placements.   Snap judgments should be avoided.covering letter asking him/her to improve and a copy of the same will be placed in his/her personal life. Each factor under considerations should be appraised independently without being influenced by other factors. behavior and other training and development needs and provide information to the personnel/HRD department for the development decisions. Over – rating as well as under – rating diminishes the value of the assessment. managerial. It is advisable that the individual being assessed should compare with others of the same rank employed on more or less similar type of work. training and personnel and developmental decisions in respect of the individual so appraised. Reason for given rating of the attribute should be well substantiated. • To generate inputs for promotions. A copy of adverse remarks communicated to the employee should be attached to the appraisal form. Guide lines for Appraisers :  The employee should be appraised for his present position. Objectives of performance appraisal system • To appraise the individual’s performance on the work assigned to him and qualities he is expected to show on the job in performing his tasks as expected by the organization through his supervising officers and to assess the potential for higher responsibilities. • To assess the professional.  Judgment should be based on the entire review period & not on isolated incidents. 66     .

Department 5. 67 . Special assignments 7. Date of Joining 4. Qualifications 8. Designation 3. Punishments and warnings awarded during the year (with reasons). *ATTRIBUTES FOR PERFORMANCE/POTENTIAL ASSESSMENT For Officers: • • • • • • • • • • Professional knowledge and application Capacity to achieve results Dependability Judgment and decision making Communication Skills (Written or oral) Leadership Planning and organizing ability Co-operation and team spirit Adaptability Personality. Commendations 9.ABOUT THE FORMS : Content of the forms : * BACKGROUND INFORMATION of the employee to be filled in by the personnel department which contains1. Employee number 6. Name 2.

   Conduct: Ability to get on with other fellow employees. For Non –Technical Staff only : Dealing with others: Ability to appreciate others point of view and approach in dealing with customers. Quality of work: Thoroughness and accuracy of work done without mistakes. Regularity: Punctuality and regularity of attendance. Initiative: Self .starting ability.   Quality of work: Amount of output vis . resourcefulness and the ability to inspire confidence should be considered. neatness and present ability should be considered. Leadership: Ability to get work done by subordinates giving them clear guidance.  Cost consciousness: Ability to foresee the resource requirement for any task and complete assignments with minimum waste. suppliers or any other outsiders in conformity with organizational requirement.  Care of tool and equipment: Manner in which tool and equipment handling is done ensuring better tool life and less maintenance and damage.For Technical/Non-Technical Staff (common attributes):   Job knowledge: Knowledge and understanding of job assigned. For Technical Staff only :  Safety Consciousness: Habits and work practices in respect of personal safety and safety of fellow employees.a – vis the time taken. RATING OF ATTRIBUTES 68 .

Target/tasks not fulfilled.7 6.5 4-3 2. Conscious of the need to effect economy and manage time Wasteful in work.The common factors and the ratings under which the appraisal are made are as follows: QUANTITY OF OUTPUT : Extent of target fulfillment and completion of assigned tasks. the extent of work free from errors. Output far below expectation. RATING 10-9 8.1 REASON Excellent quality of output accurate in work under all conditions.1 REASON Always makes optimum utilization of resources All assigned tasks completed within the specific cost parameters Generally keeps within cost parameters and time schedules. Optimum utilization of available resources and reduction of wastes.13 12-10 9-7 6-4 3. RATING 15. RATING REASON 15-13 Output of work exceptionally high and above expectations/tasks assigned despite high degree of difficulty of tasks. 69 . Low effort QUALITY OF OUTPUT : General excellence of output. Lacks desire to complete assignments in time. Moderate effort.7 6-4 3-1 Fulfillment of all tasks / targets despite constraints Tasks assigned generally met with moderate effort Output below target/expectation despite lack of constraints. 12-10 9. Does a thorough and accurate job Generally produces work of acceptable quality Work barely upto the mark Works consistently below required standards COST CONTROL : Awareness of cost aspects in the job.

70 .9 8.7 6. Good knowledge of his own job and related areas Knowledge adequate in own area Knowledge inadequate in own and related areas Poor knowledge. RATING 10-9 8-7 6.5 4.7 6.1 REASON Excellent ability to anticipate future work needs ahead of time.9 8.5 4. RATING 10.5 4. No motivation to learn DISCIPLINE : Adherence to company policies and rules RATING 10.3 2.JOB KNOWLEDGE AND SKILL : Knowledge pertaining to the area of work and related areas.1 REASON Exemplary behaviour and conduct Good behaviour and conduct Discipline is generally good Conduct and discipline within manageable limit Low in discipline INITIATIVE : Ability to be self-reliant and move forward on a task without outside direction. A self starter Good initiative Generally shows good initiative Needs guidance.3 2.1 REASON Totally self-reliant. instructions and follow up Always requires to be told COMMUNICATION : Skill and desire to share available information with all concerned.3 2.

RATING 10.1 REASON Excellent clarity of thought and expression Shares information with all concerned Has moderate skill and desire to share information Only believes in downward communication Lacks both the skill and the will to communicate MANAGEMENT OF HUMAN RESOURCES : Effective control and utilization of sub ordinates.3 2.7 6. integrating employees into teams and motivating them for higher levels of performance. ensuring discipline. RATING 5 4 3 2 1 REASON Excellent control over and utilization of people Good utilization of people Plays basically a controlling function Has little control Has no control over his/her people 71 .9 8.6 4.

CHAPTER –V ANALYSIS AND INTERPRETATION 72 .

A sample of 60 respondents wee selected at random from different departments like… (Mines. Vigilance. A survey was conducted by way of questionnaire to find out whether the employees are satisfied with the existing system and their opinions on rated areas. Marketing. The questionnaires are analyzed in both Table format and Graphically. Finance. STATEMENT NO:1 What is the opinion on the present performance appraisal system in your organization? 73 . Training and Development center etc).

4. 1. 2. Employees of VSP are happy to work with the organization. 3. NO. 33% of the respondents strongly agree with the above statement.SL. Statement No-1 74 . RATING RESPONDENTS PERCENTAGE 33 47 20 0 100 Strongly Agree 20 Agree 28 Disagree 12 Strongly disagree 0 TOTAL 60 TABULATION FORMAT INTERPRETATION The above tabulation format shows that the majority of 47%respondents expressed agree to the above statement.

50 45 40 35 30 25 20 15 10 5 0 Strongly Agree Agree Disagree Strongly disagree STATEMENT NO: 2 Do you feel that Low performance due to lack of skill? 75 .

NO. 10% of the respondents strongly agree with the above statement remaining 40% employees expressed strongly disagree. 4. 2. RATING Strongly Agree Agree Disagree Strongly disagree TOTAL RESPONDENTS 6 30 0 24 60 PERCENTAGE 10 50 0 40 100 INTERPRETATION The above tabulation format shows that the majority of 50% respondents expressed agree to the above statement.TABULATION FORMAT SL. Employees of VSP are happy to work with the organization. Statement No-2 76 . 1. 3.

3 3.50 45 40 35 30 25 20 15 10 5 0 Strongly Agree Agree Disagree Strongly disagree Statement No. Performance Appraisal system helps in assessing competency? 77 .

tabulation format

SL.NO. 1 2 3 4

RATING Strongly Agree Agree Disagree Strongly disagree TOTAL :

RESPONDENTS 20 30 10 0 60

PERCENTAGE 33 50 17 0 100

INTREPRETATION The above tabular format explains the performance appraisal system helps in assessing competency of employees. Here, 50% employees agree the above statement and 33% employees expressed strongly agree, remaining 17% employees disagree.

Statement No-3

78

Strongly Agree Agree Disagree Strongly disagree

0%

50%

100%

79

Statement No.4 Training and retraining are the indicators of performance to what extent?

Tabulation format

SL.NO. 1 2 3

RATING Absolute Moderate No comments TOTAL :

RESPONDENTS 6 24 30 60

PERCENTAGE 10 40 50 100

INTREPRETATION From the above tabular format 50% of the employees expressed no comment, 40% of the employees expressed moderate and the remaining 10% employees expressed absolute.

80

Statement No-4 50 45 40 35 30 25 20 15 10 5 0 Absolute Moderate No comments 81 .

bonus.5 Can performance appraisal evaluation helps the compensation adjustment like pay increase. 1 2 3 4 RATING Strongly agree Agree Disagree Strongly disagree TOTAL : RESPONDENTS 0 24 12 24 60 PERCENTAGE 0 40 20 40 100 INTREPRETATION From the above tabular format 40% of the employees expressed agree.Statement No.NO. Statement No-5 82 . incentives? Tabulation format SL. 40% of the employees expressed strongly disagree and the remaining 20% employees expressed disagree.

40 30 20 10 0 Strongly agree Agree Disagree Strongly disagree StatementNo.6 In VSP promotional activities are done by? 83 .

NO. 1 2 3 4 RATING By merit By seniority By both None TOTAL : RESPONDENTS 0 24 36 0 60 PERCENTAGE 0 40 60 0 100 INTREPRETATION From the above tabular format 60 % of the employees expressed by both. Statement No-6 84 . 40% of the employees expressed by seniority about the promotional activities.Tabulation format SL.

In your opinion performance is directly linked with career growth opportunity in VSP? 85 .60 50 40 30 20 10 0 By merit By seniority By both None Statement No.7 .

86 .Tabulation format SL. 1 2 3 4 RATING Strongly agree Agree Disagree Strongly disagree TOTAL : RESPONDENTS 6 44 0 6 60 PERCENTAGE 10 80 0 10 100 INTREPRETATION From the above tabular format 80% of the employees expressed agree.NO. 10% of the employees expressed strongly agree and the remaining 10% employees expressed strongly disagree. .

8 87 .Statement No-12 80 70 60 50 40 30 20 10 0 Strongly disagree Strongly agree Agree Disagree Statement No.

30% expressed 360 degree. 1 2 3 4 RATING Performance & potential appraisal Team appraisal Self appraisal 360degree appraisal TOTAL : RESPONDENTS 18 12 12 18 60 PERCENTAGE 30 20 20 30 100 INTREPRETATION From the above tabular format 30of the employees expressed performance appriasl and potential appraisal. Statement No-8 88 .NO. 20% expressed team appraisal and remaining 20% expressed self appraisal.Which one do you think is the best performance appraisal system in your organization? Tabulation format SL.

9 20 12 12 50 18 Performance & potential appraisal Team appraisal Self appraisal 360degree appraisal According to your opinion who is the best person to conduct performance appraisal 20 89 30 100 150 .30 18 0 system? Statement No.

90 . 1 2 3 4 RATING Superiors Subordinates Peers HOD TOTAL : RESPONDENTS 48 6 0 6 60 PERCENTAGE 80 10 0 10 100 INTREPRETATION From the above tabular format 80% of the employees expressed supeiors.Tabulation format SL.10% of the employees expressed subordinates and the remaining 10% employees expressed HOD.NO.

80 70 60 50 40 30 20 10 0 Superiors Subordinates Peers HOD 91 .

92 .NO.. 1 2 3 4 RATING Strongly agree Agree Strongly Disagree Disagree TOTAL : RESPONDENTS 12 36 0 12 60 PERCENTAGE 20 60 0 20 100 INTREPRETATION From the above tabular format 60% of the employees expressed agree. 20% of the employees expressed strongly agree and the remaining 20% employees expressed disagree.10 Are you satisfied with periodical review of appraises in VSP? Tabulation format SL.Statement No.

Statement No-10 60 50 Strongly agree Agree 30 Strongly Disagree Disagree 40 20 10 0 93 .

11 Performance appraisal helps in creating an effective work environment and positive relationship? Tabulation format SL. . Statement No-11 94 .Statement No. 30% of the employees expressed strongly agree and the remaining 10% employees expressed disagree. 1 2 3 4 RATING Strongly agree Agree Strongly Disagree Disagree TOTAL : RESPONDENTS 18 36 0 6 60 PERCENTAGE 30 60 0 10 100 INTREPRETATION From the above tabular format 60% of the employees expressed agree.NO.

12 Performance appraisal system helps in knowing strength & weakness of subordinates? 95 .120 100 Disagree 80 60 40 20 0 Strongly Disagree Agree Strongly agree Statement No.

1 2 3 4 RATING Strongly agree Agree Strongly Disagree Disagree TOTAL : RESPONDENTS 12 36 0 12 60 PERCENTAGE 20 60 0 20 100 INTREPRETATION The above statement agreed by 60% respondents and 20% employees are strongly agreed the statement and the remaining 20% employees disagreed the statement. 96 .Tabulation format SL.NO.

Statement No-12 60 50 40 30 20 10 0 Strongly agree Agree Strongly Disagree Disagree 97 .

Statement No.NO. 1 2 3 4 RATING Strongly agree Agree Strongly Disagree Disagree TOTAL : RESPONDENTS 12 36 0 12 60 PERCENTAGE 20 60 0 20 100 INTREPRETATION The above tabulation shows that 60% respondents agree. 20% disagree and remaining for the above statement..13 Do you think performance appraisal helps in assessing the training needs of the subordinates? Tabulation format SL. 98 . 20% disagree.

Statement No-13 60 50 40 30 20 10 0 Strongly agree Agree Strongly Disagree Disagree 99 .

100 .14 Awareness programmes regarding performance appraisal system should be conducted periodically? Tabulation format SL.NO. 1 2 3 4 RATING Strongly agree Agree Strongly Disagree Disagree TOTAL : RESPONDENTS 24 30 0 12 60 PERCENTAGE 30 50 0 20 100 INTREPRETATION From the above tabular format 50% of the employees expressed agree.Statement No. 30% of the employees expressed strongly agree and the remaining 20% employees expressed disagree for the given statement.

Statement No-14 50 45 40 35 30 25 20 15 10 5 0 Strongly agree Agree Strongly Disagree Disagree 101 .

15 Do you think performance appraisal system effects the organization development? Tabulation format SL. 1 Yes 2 No RATING TOTAL : RESPONDENTS 54 6 60 PERCENTAGE 90 10 100 INTREPRETATION For the above statement 90% of the employees expressed yes and the remaining 10% for No in the case of PA system effect the organization development. 102 .Statement No.NO.

Statement No-15 38% 62% 103 .

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• Objective and fair assessment can induce seriousness towards appraisal and help increase motivation among employees. • Appreciation for good performance and proper guidance for improvement is a must. FINDINGS. • Appraisal linked to promotions and increments will motivate the employee to wards word culture. • As the appraisal is directly linked to promotions or career progressions of an employee there should be transparency in discussing the appraisal report. SUGGESTIONS FOR A BETTER PERFORMANCE APPRAISAL SYSTEM • Use of counseling as a tool to improve performance can help the employees provided it is devoid of severe criticisms.SUGGESTIONS. SUMMARY&CONCLUSION SUGGESTIONS A Sample of 60 respondents were selected at random from different departments the cross j-section of employees from the staff to middle level management were sort for their opinions on the existing appraisal system. suppression of domination. A survey was conducted (by way of questionnaire and interview) to find out whether the employees are satisfied with the existing system and their opinions on rated areas. 105 .

VPAS has become a routine affair and not much importance given and interest shown towards their purpose. • Most appraisers lack proper training regarding the appraisal technique and in dealing with post appraisal tools like counseling • Technique interview.FINDINGS: • • The objectives of VPAS are not clear to many. • Discussion between the appraiser and appraise regarding the appraisal is not performed seriously. FACTORS TO BE INCLUDED INTO THE PRESENT CRITERIA FOR PERFORMANCE EVALUATION: • Quality assignment of the work done • • • • • • Disciplinary/administrative lapses Extraordinary occurrences Problem solving skills Productivity or work-output Attitude towards work Behavior and health 106 .

It is required by the organization for the purpose of employee evaluation. Manipulation. Employee problems are identified and discussed from time to time which helps him improve his performance.  In formal Appraisal: It occurs whenever the supervisor feels the need for communication.• • Efficiency Capability to take up higher responsibility Formal vs. discuses performance change in the employee’s work which helps in developing better interpersonal relations and develops a positive environment. Howler. ides and deludes scan damage the credibility of the appraisal. Formal appraisal most often used for primary evaluation. informal appraisal:  Formal appraisal: In is usually occurs at specified time periods once or twice a year. impression. Reasons why performance appraisal does not form a proper basis for decisions regarding promotions: • • • Biased evaluation is not a proper indication of an employee’s performance standards Reliance on seniority rather than on performance for performance standards.  Self-appraisal performances: as the best forms of evaluation one’s 107 . informal appraisal’s very helpful for more performance feedback. the supervisor whenever feels the need.

Their system of appraisal. career growth etc and PAS designed to provide the key inputs that all the above need to be activated. competencies to handle future/current jobs. when this study is completed the result/conclusion showed that the employees. to build teamwork and to link job performance with organization’s goals. after the employee and the supervisor make their evaluations. an attempt was made to integrate this thought in Performance Appraisal System. Number of organizations encourages discussions regarding differences in subjective rating between the employee and the supervisor so as to ensure active involvement form both sides. They are: 1. the drive to provide better quality and to satisfy external and internal customers has been activated. Mostly this system is not helping the person to assess his capabilities the assessment is mostly dependent upon the obedience with his boss. 108 . At Visakhapatnam Steel Plant. here.This refers to the evaluation that employs makes of themselves. like Performance based recognition. Self –appraisal can be very effective as it provides employees with an opportunity to participate in the appraisal process and set performance targets for themselves. do feel that this system is not very effective. but also to encourage employee development. generally. they discuss perceived differences. To bring this about many activities are to be initiated. an attempt was made to analyze the REASONS FOR DISSATISFACTION of executives their Performance Appraisal System. looked “fool-proof” and well designed to suit the quality genre. for it has integrated in itself some wonderful concepts. But. With global competition. SUMMARY The “quality” revolution has changed the ways in which many organisations operate. who actually are participants in the system. Surprised by this result. in the first instance. Visakhapatnam Steel Plant executives Performances Appraisal System mainly aims at a “Result Oriented executives”. the aim is not only to assess a person.

7. Potential review is integrated in the PAS. CONCLUSION Performance Appraisal system is very important to assess training needs to effect promotions. who are their superiors. 10. Employees feel that filling the application form is a routine job at the procedure and method should keep on changing time to time. The employees are assessed by a team of appraisers. being designed. And as employees perceive that the training they asked for is not being provided. the drive to sincerely appraise ones own self is lacking. A good number of employees are not satisfied with the ceiling prescribed for distribution in an appraisal group. present job 4. This indirectly is resulting in training programmes. 3. none of the above reasons identified are so damaging that they cannot overcome. which do not cater to all the employees. With slight changes in appraisal format and rating pattern the problems would be mostly solved. However.2. there would by a little or no commitment at all. Potential being the capability to take up the future job cannot be judged by the performance on the Training needs identified either through self-assessment or team assessment consolidated and only a few of them are finalized after several rounds of filtering. those are modern tradition method. may give a rating which can be mostly subjective. and to give pay increase. 109 . 11. There are two methods in performance Appraisal system. Absence of a proper reward and punishment system. The problem here is that the team of appraisers to not have regular interaction with the appraise. Self-assessment does not carry enough weight age. 9. 8. While going through the analysis it seems that a good number of people are uncertain about each questions asked to them which clearly shows that there must be some fault existing in the stem which should be recognized and overcome. 6. So. Lack of time spent by the appraiser and appraisee during the performance review. 5. Tasks and targets do not reflect the efficiency of executing them. But.

the steps involved are –defining appraisal objectives.K AHUJA s “HUMAN RESOURCE MANAGEMENT”.SUBBA RAO s “HUMAN RESOURCE MANAGEMENT AND INDUSTRIAL RELATIONS” . New Delhiy 110 . establishing job expectations. V S P RAO and P. BIBLIOGRAPHY K. Premier Book Company. Himalaya Publishing House. ASWATHAPPA s “HUMAN RESOURCE AND PERSONNEL MANAGEMENT” Tata Mc Graw-Hill P. Kalyani Publishers. conduction performance interview. Tata Mc Graw-Hill.S NARAYANA “MANAGEMENT”. and using appraisal data for different HR activities.Appraisal of performance proceeds in a set of pattern. ARUN MONAPPA and MIRZA s “PERSONNEL MANAGEMENT”. designing the appraisal programmes.

bonus.QUESTIONNAIRE 1) Name of the employee (optional): 2) Designation of the employee: 3) Experience: 4) Department: 5) What is your opinion on the present performance appraisal system in your organistion? a) Excellent _______ b) Good______ c) Moderate _______d) bad________ 6) Will the performance appraisal system encourage people to plan their work well in advance? a) Strongly agree______b) Agree_____ c) Strongly disagree_____d) Disagree_____ 7) Do you feel that low performance appraisal is due to lack of skill? a) Strongly agree______ b) Agree______c) Strongly disagree____d) Disagree_____ 8) Performance appraisal system helps in assessing competency? a) Strongly agree______b) Agree______c) Strongly disagree_____d) Disagree_____ 9) Training/retaining are the indicator of performance to what extent? a) Absolute________b) moderate________ c) No comments________ 10) Can performance evaluation helps the compensation adjustment like pay increase. incentives? 111 .

a) Strongly agree______b) Agree______c) Strongly disagree_____d) Disagree_____ 11) In vsp the promotional activities are done by? a) By merit________b) By seniority_________ c) Both________ d) None________ 12) In your opinion performance is directly linked with career growth opportunities in VSP? a) Strongly agree_______b) Agree______c) Strongly disagree_____d) Disagree_____ 13) Which one do you think is the best performance appraisal system in your organistion? a) Performance & potential appraisal_______ b) Team appraisal___________ c) Self appraisal________________ d) 360 degree appraisal___________ 14) According to your opinion who is the best person to conduct performance appraisal system? a) Superiors_________ b) Subordinates________c) Peers_________d) HOD________ 15) Is there any performance Indicator (KPI) in vsp? a) Yes________ b) No __________ 16) What are methodologies of conducting performance review discussion adopted by your organization to evaluate the potentiality of the appraises? a) Periodical__________ b) Non periodical___________ 17) Are you satisfied with periodical review of appraises in vsp? a) Strongly agree_______b) Agree______c) Strongly disagree_____d) Disagree_____ 18) Performance Appraisal helps in creating an effective work Environment and Positive relationship? a) Strongly agree_______b) Agree______c) Strongly disagree_____d) Disagree_____ 19) Performance Appraisal system helps in knowing strength &weakness’s of subordinates? 112 .

a) Strongly agree_______b) Agree______c) Strongly disagree_____d) Disagree_____ 20) Do you think performance appraisal helps in assessing the training needs of the subordinates? a) Strongly agree_______b) Agree______c) Strongly disagree_____d) Disagree_____ 21) Awareness Programmes regarding performance appraisal system should be conducted periodically? a) Strongly agree_______b) Agree______c) Strongly disagree_____d) Disagree_____ 22) Do you think performance appraisal system effects the organization development? a) Yes_________ b) No______________ 113 .

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