A

Project Report
On
“ROLE OF PERFORMANCE APPRAISAL ON TATA STEEL”

Master of Business Administration

(Session 2021-2023)

MAHARANA PRATAP ENGINEERING COLLEGE KANPUR

KN046
(Affiliated to U.P. Technical University, Lucknow & Approved by AICTE, New Delhi)

UNDER THE GUIDANCE OF: SUBMITTED BY

MR. ROHIT VERMA MO. SHAHVAN
(Assistant Professor) Roll NO. 2100460700030

1|
 DECLARATION

I’m Mo.Shahvan, a student of Maharana Pratap Engineering College , approved by UPTU, Lucknow
hereby declare that the project entitled “ROLE OF PERFORMANCE APPRAISAL ON TATA STEEL ”, is
the original work done by me and the information provided in the study is authentic to the best of my
knowledge. This study report has not been submitted to any other institution or university for the award or any
other degree.

This report is based on my personal opinion hence cannot be referred to legal purpose.

(Mo. Shahvan)
Date: -
PREFACE
 PREFACE

The history of performance appraisal is quite brief. Its roots in the early 20th century can be traced to Taylor's

pioneering Time and Motion studies. But this is not very helpful, for the same may be said about almost

everything in the field of modern human resources management. As a distinct and formal management

procedure used in the evaluation of work performance, appraisal really dates from the time of the Second World

War - not more than 60 years ago.

In many organizations - but not all - appraisal results are used, either directly or directly, to help determine

reward outcomes. That is, the appraisal results are used to identify the better performing employees who should

get the majority of available merit pay increases, bonuses and promotions.

The purpose of this study has been to determine whether the performance appraisal was used for employee

development and whether the appraisal was emphasized as an important part of the performance appraisal

process in steel industry.Also whether the performance appraisal helps in increasing industry’s profitability.

My study suggested that the performance appraisal has helped in increasing the profitability of industry. Certain

loop holes has been determined and suggestions were made.

ACKNOWLEDGEMENT
 ACKNOWLEDGEMENT

This project has been made possible through the direct and indirect co-operation of various people for whom I

wish to express my appreciation and gratitude. In the preparation of this project report I have received help and

encouragement from different sources.

I express my sincere thanks to Mr. Rohit Verma (Faculty of department), & other faculty members of

M.B.A. department including , for the valuable suggestion and making this project a real successful.

I once again thanks to all those who extended their support and co-operation in bringing out this project work

successfully.

Mo. Shahvan
DATE:
OBJECTIVE OF
STUDY
 OBJECTIVE OF THE STUDY

1. To examine why an appraisal system is important.

2. To study the effectiveness of the existing performance appraisal system in a Tata Steel.

3. On the basis of what company increase salary and provide training to its employees. And what is basis

of promotion in company.

4. To understand more and more about role of employee and become clear about his functions.

5. To understand employee’s own strengths and weaknesses with respect to his role and functions.

6. To analyze the role played by performance appraisal system in increasing the mutuality between

employee and his superiors.

7. What opportunities are provided by the performance appraisal system to the employees for self

reflection and individual goal setting.

 TABLE OF CONTENT

TITLE PAGE NO.

Title page

Certificate of

college

Declaration

Preface

Acknowledgement

Objective of the study

Introduction 10

Steel industry in India 28

Introduction of Tata Steel 30

Major players of steel in India 40

Trends in performance appraisal 48

Latest Technologies in Steel Industry 50

Research Methodology 53

Findings and Analysis 56

Survey Findings 62

Conclusion 65

Implication of the Project 69

Suggestions and recommendations 70

Limitations 72

Bibliography 75
INTRODUCTION
 INTRODUCTION

Almost every organization in one way or another goes through a periodic ritual, formally or informally, known

as performance appraisal. Performance appraisal has been called many things. The formal performance

appraisal has been called a tool of management, a control process, an activity and a critical element in human

resources allocation. Uses for performance appraisal have included equal employment opportunity

considerations, promotions, transfer and salary increases. Primarily performance appraisal has been considered

an overall system for controlling an organization. Performance appraisal has also been called an audit function

of an organization regarding the performance of individuals, groups and entire divisions.

Performance appraisal may be defined as a structured formal interaction between a subordinate and supervisor,

that usually takes the form of a periodic interview (annual or semi-annual), in which the work performance of

the subordinate is examined and discussed, with a view to identifying weaknesses and strengths as well as

opportunities for improvement and skills development. Almost every organization in one way or another goes

through a periodic ritual, formally or informally, known as performance appraisal. Performance appraisal has

been called many things. The formal performance appraisal has been called a tool of management, a control

process, an activity and a critical element in human resources allocation.

And since people differ in their abilities and aptitudes. These differences are natural to a great extent and cannot

be eliminated even by giving the same basic education and training to them. There will be some differences in

the quality and quantity of work done by different employees even on the same job. Thus, there is a great need

to have suitable performance appraisal system to measure the relative merit of each employee.

The basic purpose of performance appraisal is to facilitate orderly determination of an employee’s worth to the

organization of which he is a part. However, a fair determination of the worth of an employee can take place

only by appraising numerous factors some of which are highly subjective, as for instant, attendance, while

others are highly subjective, as for instant, attitude and personality. The objective factor can be assessed
accurately on the basis of records maintained by the Human resource or personnel Department, but there is no

device to measure the subjective factor precisely. Notwithstanding this, appraisal of these factors must be done

to achieve the full appreciation of every employee merit.

Therefore, it can be said that, performance appraisal means systematic evaluation of the personality and

performance of each employee by his supervisor or some other person trained in the techniques of merit rating.

It employs various rating techniques for comparing individual employees in a work group, in term of personal

qualities or deficiencies and the requirements of their respective jobs. To quote dale Yoder,” performance

appraisal includes all formal procedures used to evaluate personalities and contribution and potential of group

members in a working organization. It is a continuous process to secure information necessary for making

correct and objective decisions on employees.” The comparison of performance with job requirements helps in

finding out the merit of individual employees in a week group. Supervisor or an independent appraiser may do

rating.

Performance appraisal is a formal program in an organization, which is concerned with not only the

contribution of the members who form part of the organization, but aims at spotting the potential also. The

satisfactory performance is only a part of the system as a whole and the management needs more information

than mere performance ratings of the subordinates. There are no two opinions about the necessity of

performance appraisal, which can meet requirements of the management to achieve the organizational goals.

Performance appraisal is the systematic evaluation of the individual with respect to his performance on the job

and his potential for development. Performance appraisal is concerned with determining the differences among

the employees working in the organization. Generally, the individual’s immediate superior in the organization

and whose performance is reviewed in turn by his superior does the evaluation. Thus, everyone in Performance

appraisal employs rating techniques for comparing individual employees in the work group, in terms of personal

qualities or deficiencies and the requirements of their respective jobs.

More abruptly it can be said that, Performance management can be defined as a strategic and integrated

approach to delivering sustained success to organizations by improving the performance of the human capital

and by developing the capabilities of teams and individuals within that organization (Armstrong and Baron,

2000). The process of performance management therefore focuses not only with ‘WHAT’ is produced but, also

‘HOW’ it is produced. It seeks to ensure that what has been produced is in line with the organization’s needs

and these products have been produced in line with the organization’s way of doing things.

Performance management can be achieved through many different ways. These include performance appraisal

system and coaching. Performance appraisal system can be described as a fairly old system of measuring

employees’ performance that has been in use in many organizations. However, Performance appraisal has not

brought in the amount of positive results that was expected of it. Armstrong and Mulis (1994:86) quoted one

manager describing performance appraisal as “a dishonest annual ritual”. The question that arises then is: “If

Managers (the custodians of the system) do not have confidence in their own system, what more employees

(who happen to be victims of the system)?”

The meaning of the word “appraisal” is “to fix a price or value for something”. This is used in finance in terms

such as project appraisal or financial appraisal where a value is attached to a project. Similarly performance

appraisal is a process in which one values the employee contribution and worth to the organization.

Performance appraisal can be defined as a system of measuring employee’s performance relative to the

assigned or agreed objectives. The process starts with the supervisor and or with the subordinate agreeing on

specific objectives that need to be met on an agreed time period. The objectives that are used in the Performance

appraisal stem from the main organizational objectives that are reduced to Departmental goals and now to

individual goals.

The performance appraisal system has to be transparent and the employee should be taken into full confidence.

In many cases employees themselves are given a chance to conduct a self-appraisal. Performance appraisal is a
case of joint problem solving by the organization and the employee. However the organization must also take

care of future potential and not get bogged down by current performance.

Normally the immediate supervisor does the appraisal. Some organizations also have a peer group

performance appraisal where colleagues rate the performance.

The HR person must also ensure that line managers are properly trained for carrying out the appraisal including

interviewing techniques and on how to give feedback. The managers must also be trained to look at the cases

objectively outside of their personal opinion of the candidate.

Therefore at end it would be right to say that, Performance appraisal is the process of obtaining, analyzing and

recording information about the relative worth of an employee. The focus of the performance appraisal is

measuring and improving the actual performance of the employee and also the future potential of the

employee. Its aim is to measure what an employee does.

According to Flippo, a prominent personality in the field of Human resources, "performance appraisal is the

systematic, periodic and an impartial rating of an employee’s excellence in the matters pertaining to his present

job and his potential for a better job." Performance appraisal is a systematic way of reviewing and assessing the

performance of an employee during a given period of time and planning for his future.

It is a powerful tool to calibrate, refine and reward the performance of the employee. It helps to analyze

his achievements and evaluate his contribution towards the achievements of the overall organizational

goals.

Organizations exist to achieve goals. Goals are only met when individual employees efforts matches with

policy of the organization and thus bringing out success and effectiveness. The assessment of how unsuccessful
employees have been at meeting their individual goals therefore becomes a critical part of HRM and here comes

Performance Appraisal System.

Performance Appraisal is an important component of the information and control system. In today’s flexible

organizations, performance evaluations provide an effective way for managers to clarify performance goals and

standards to enhance future individual performance. Thus, the purpose of performance appraisal is to improve

the organization’s performance through the enhanced performance of individuals.

The performance appraisal system:

 Is an organizational necessity.

 Is based on well defined objective criteria.

 Is based on careful job analysis.

 Uses only job related criteria.

 Is supported by adequate studies.

 Is applied by trained qualified raters.

 Is applied objectively throughout the organization.

 Can be shown non discriminatory as defined by law.

By focusing the attention on performance, performance appraisal goes to the heart of personnel

management and reflects the management's interest in the progress of the employees.
 OBJECTIVE OF PERFORMANCE APPRAISAL

There are mainly two purposes for which performance appraisal is used by an organization:

(1) To improve the work performance of employees by helping them realize and use their full potential in

carrying out the firm’s missions; and

(2) To provide information to employees for use in making work related decisions,

More specifically, appraisals serve the following purposes.

a) Appraisals generate information to support administrative decisions. Promotions transfers

and reassignments, demotions and termination’s are action based at least in part on

performance.

b) Appraisals provide feedback to employees and thereby serve as vehicle for personal or

career development because feedback provides:

 Reassurance that they are contributing and doing the right thing

 Awareness of the impact on the desired results

 A measure of the adequacy of performance (quality, quantity, speed etc.)

 Recognition of the importance and value of their performance.

c) Once the development needs of employees are identified appraisals can help establish objectives

for training programmes. Thus evaluations provide a basis for changing performance plans, including

objectives and standards of behaviors as business plans and conditions change.

d) As a result of proper specifications of performance levels, appraisals can help diagnose organizational

problems. They do so by identifying training needs and the knowledge, abilities, and other characteristics to
 consider in hiring, and they also provide a basis for distinguishing between, effective and ineffective

performers.

e) Appraisals are used as criteria in test evaluations.The rationale for differential treatment of employees

needs to be consistent with company’s values, philosophy and strategy. It also needs to be balanced with

the desire for collaboration, rather than competition and conflict, sought in TQM.
PERFORMANCE APPRAISAL - PROCESS MAP
 METHODS OF PERFORMANCE APPRAISAL

Currently most of the companies are using one of the following Performance Appraisal Methods:

1). 360 Degree Appraisal Method

2). Rating Scale Method

3). Management by Objective Method

Under the 360 Degree appraisal method the employee is rated from all angles i.e., by the superiors,

subordinates, peers, suppliers, distributors, customers and clients. Under the Management by Objective

method the employee goals are set mutually by the employee's and the management. And the employees are

rated based on the accomplishment of these goals. Under the Rating Scale method each employee trait or

characteristic is rated on a scale that usually has several points ranging from "poor" to "excellent" (or some

similar arrangement).The traits assessed on these scales include employee attributes such as work quality,

cooperation, initiative, punctuality and technical competence, etc. The selected traits should be in some way

relevant to the appraisee's job.

360º APPRAISAL AND FEEDBACK

The 360 degree appraisal involves rating of an employee or manager by everyone above, alongside and below

him. Corporates are using this tool to find out truths about their managers. Although deployed mostly as a fact-

finding technique, 360 º appraisals are also used to design promotion and reward system in the organization.
Concept of 360º Appraisal

According to Milliman and others, “360-degree appraisal is the process of systematically gathering data on a

person’s skills, abilities and behaviors from a variety of sources –the manager, peers, subordinates and even

customers and clients”. Thus, appraisal of an employee is done by his superior, his peers, his subordinates and

clients or outsiders with whom he interacts in the course of his job performance. In 360-degree appraisal,

besides appraising the performance of the assesses, his other attributes such as talents, behavior, values, and

technical capabilities are also appraised.

Besides the employee himself, superior, subordinates and peers play an important role in the appraisal.

Structured questionnaires are used to collect responses about the employee from his superiors, peers and

subordinates. Several parameters relating to performance and behavior are used in the questionnaires. Each

manager is assessed by a minimum of fifteen colleagues, at least two of them being his bosses, four of them

peer, and six of them subordinates. Even the important customers or clients of the firm may also be requested to

give their assessment of the concerned employee. The responses are presented collectively to the assesses in the

form of charts and graphs. Comments and interpretations are presented later. Counseling sessions are arranged

with the employee to remove the weaknesses identified in the 360 degree assessment.
 Merits of 360º Appraisal

The merits of 360º appraisal are as under:

(i) The 360 degree appraisal leads to greater self-awareness of those appraised. It reveals strengths

and weaknesses in their working styles.

(ii) The gap between self assessment and the views of one’s colleagues of peer group in reduced.

(iii) It facilitates empowerment of subordinates who get a say in the appraisal of their bosses.

(iv) Inflexible managers are forced to initiate self-change.

(v) Facts about organizational culture and ambience are brought to light by the multiple appraisals.

Limitations of 360º Appraisal

The system of 360º appraisal suffers from the following limitations:

(i) The 360 degree appraisal system ignores performance in terms of goals.

(ii) The candidate being appraised may not accept negative feedback from the subordinates and peers.

He might feel humiliated.

(iii) Responses from colleagues often tend to be biased.

(iv) Linking rewards to findings under 360 degree appraisal can prove to be unfair.

(v) The subordinates and peers might not be fully competent in appraisal.
Guidelines for Better Use of 360º Appraisal

The use of multisource appraisal can be effective if the following guidelines are followed:

(i) Involve people. Ask them who should serve as raters, and give them an opportunity to review and

interpret the results. This will strengthen their commitment to both the overall process and the specific

decisions.

(ii) Ensure that relevant data are being collected. Focus on behaviors and outcomes that raters are capable of

observing and are competent to evaluate.

(iii) Ensure that no single rater can dramatically affect the outcome. Use a large enough sample or eliminate

the highest and lowest scores to ensure that no one rater can skew the data.

(iv) Train raters in what and how to observe. The better people understand what they look for and how to

record”critical incidents” (specific things the person said and did that can be used as examples to

support their ratings, and better the quality of the information that will be collected.

(v) Ask raters to support their evaluations. Whenever possible, raters should discuss their observations and

evaluations with other raters. These discussions should trigger thoughts and combat selective memory.

Raters should also be required to provide a rationale for their rating to other raters. This would prevent

people from using the process to act on personal grudges.

(vi) Move slowly and start small. Any organization considering using 360 º feedbacks in the appraisal

process should begin by using it for development purpose only and then gradually to make it a part of

appraisal system. Even then, the focus should be on the goal-setting portion of the appraisal. People

need to get comfortable with the idea of multisource feedback as a development tool before they can

accept it as part of the formal performance management process.

A lot of organizations seem to be hurrying to integrate 360º feedback into the human resource

management system. Multisource feedback really does have the potential to enhance human resource

management system. However, 360º feedback won’t fix a system that does not work.
(vii) Develop a culture that supports open feedback. Not surprisingly, 360º feedback works best in companies

where the environment is participatory rather than authoritarian, where giving and receiving feedback

are the norm and are seen as valuable sources of information. If the current system (where only the

supervisor does the appraisal) is not working due to lack of straight talk and hesitancy to give direct

feedback, it is essential to introduce openness in the organization.

(viii) Clear and agreed on performance measures and behaviors. When 360º feedback is used for development

only, the organization may be able to settle the list of behaviors and skills that have reasonable face

validity and general support: “coaching” or “team building”, for instance. However, when the feedback

is being used to determine performance ratings, the result and behavior for which people are held

accountable must be clear, unambiguous and specific.

(ix) The users must support the system and be willing to invest the time required to make it work. The

introduction of 360º feedback makes an already time-intensive appraisal process even more demanding.

It means more data to collect and more information to process for the additional feedback.

(x) Sound feedback process. While the way the data are collected and presented are always important, two

aspects of sound 360º feedback procedure are particularly relevant when the data are used for appraisal

purpose: the validity and reliability of the practices for which people will be measured and the

confidentiality of the raters.

Elements of 360º Appraisal Program

The elements of 360º appraisal program are as follows:

(i) Appraisal by Superior/ Boss. This is the most important element of the 360 degree appraisal. Here the

focus is to provide constructive feedback on employee’s performance and his development needs. It is

the responsibility of the superior to ensure that employee sets goals not only in the area of business
 performance but also in the areas that are vital to the organization. These are called corporate thrust

areas and may include relationship management, safety and quality development. If the working style of

the employee is a concern area and needs improvement for enhancing effectiveness then goal may be set

for “style of functioning” such as, from short-term to long-term orientation.

It is expected of the superior to put career aspirations of the employee in proper perspective. Firstly,

superior must communicate to the employee in a clear way what the organization plans for the

employee. Secondly, if the employee has unrealistic aspirations, then also it is superior’s responsibility

to share with the employee the realistic picture given his/ her strengths, development areas, experience,

qualifications, and the organization’s ability to provide growth. This is how the superior’s appraisal has

a very significant role to play.

(ii) Appraisal by the Peer Group. The peers play an important role in the life of an employee in the

organization. The can also provide a deep insight into the personality make up, attitude and style of

working of the employee. For better results, it is essential to select the right peers for the purpose of

appraisal. They must include peers both from within the department as well as from the other

departments, which are directly connected with the working of employee’s department. The concept of

internal customers comes handy here. Three to five internal customers should normally be chosen for

peer appraisal.

In order to achieve the purpose of 360º appraisal, the peer group appraisal must strive to get the

feedback on (a) employee’s working style, (b) sensitivity towards others, (c) spirit of co-operation and

collaboration, and (d) ability to work as a team member.

(iii) Appraisal by the Subordinates. Another distinctive feature of 360º appraisal is the role of subordinates in

appraisal. It signifies two things. Firstly, it is a clear expression from the organization that it encourages

openness and that feedback is a two-way process. Secondly, it is a systemic recognition of the fact that

an employee’s subordinates do play a vital role in his appraisal. Thus, the purpose of subordinate’s
 appraisal is to get first hand assessment of how the subordinates perceive their superior to be in terms of:

(a) delegation of authority, (b) guiding and training of subordinate, (c) motivation of subordinates, (d)

team building, etc.

Upward appraisal provides an opportunity to the subordinates to give feedback to their superior on the

kind of things they would like him/ her to continue doing (status quo), things they would like him/ her to

stop doing (areas for corrective action), things they would like him/ her to start doing (areas for new

initiatives).

(iv) Self Appraisal. Any program of 360º appraisal would not be complete without self appraisal by the

employee whose performance is being appraised. Self appraisal facilitates the employee to identify his/

her strengths and weaknesses and provides an opportunity to assess the performance. In a well

established system, employees use the self appraisal very effectively and organizations also find that

employees often are their own strongest critics and display very high degree of objectivity. Self

appraisal also provides an opportunity to the employee to express his career moves for the future.

However, this is only for gathering information and that under the given organizational constraints, it

may not be possible to provide the career progression desired by the employee. Nevertheless, it is in the

organization’s interest to at least know on a first hand basis the aspirations of its employees.
STEEL INDUSTRY IN INDIA

Steel has been the key material with which the world has reached to a developed position. All the engineering

machines, mechanical tools and most importantly building and construction structures like bars, rods, channels,

wires, angles etc are made of steel for its feature being hard and adaptable. Earlier when the alloy of steel was

not discovered, iron was used for the said purposes but iron is usually prone to rust and is not so strong. Steel is

a highly wanted alloy over the world. All the countries need steel for the infrastructural development and

overall growth. Steel has a variety of grades i.e. above 2000 but is mainly categorized in divisions – steel flat

and steel long, depending on the shape of steel manufactured. Steel flat includes steel products in flat, plate,

sheet or strip shapes. The plate shaped steel products are usually 10 to 200 mm and thin rolled strip products are

of 1 to 10 mm in dimension. Steel flat is mostly used in construction, shipbuilding, pipes and boiler

applications. Steel long Category includes steel products in long, bar or rod shape like reinforced rods made of

sponge iron. The steel long products are required to produce concrete, blocks, bars, tools, gears and engineering
products. After independence, successive governments placed great emphasis on the development of an Indian

steel industry. In Financial Year 1991, the six major plants, of which five were in the public sector, produced 10

million tons. The rest of India steel production, 4.7 million tons, came from 180 small plants, almost all of

which were in the private sector. India's Steel production more than doubled during the 1980s but still did not

meet the demand in the mid-1990s, the government was seeking private-sector investment in new steel plants.

Production was projected to increase substantially as the result of plans to set up a 1 million ton steel plant and

three pig-iron plants totalling 600,000 tons capacity in West Bengal, with Chinese technical assistance and

financial investment. The commissioning of Tata Iron & Steel Company's production unit at Jamshedpur, Bihar

in 1911-12 heralded the beginning of modern steel industry in India. At the time of Independence in 1947

India's steel production was only 1.25 Mt of crude steel. Following independence and the commencement of

five year plans, the Government of India decided to set up four integrated steel plants at Rourkela, Durgapur,

Bhilai and Bokaro.

The Bokaro plant was commissioned in 1972. The most recent addition is a 3 Mt integrated steel plant with

modern technology at Visakhapatnam. Steel Authority of India (SAIL) accounts for over 40% of India's crude

steel production. SAIL comprises of nine plants, including five integrated and four special steel plants. Of these

one was nationalized and two were acquired; several were set up in collaboration with foreign companies. SAIL

also owns mines and subsidiary companies.

INTRODUCTION
OF TATA STEEL
 Introduction:
Tata Steel, formerly known as TISCO and Tata Iron and Steel Company Limited, is the world's sixth largest

steel company, with an annual crude steel capacity of 34 million tonnes. It is the largest private sector steel

company in India in terms of domestic production. Ranked 258th on Fortune Global 500, it is based in

Jamshedpur, Jharkhand, India. It is part of Tata Group of companies. Tata Steel is also India's second-largest and

second-most profitable company in private sector with consolidated revenues of Rs 244,744 crore and net profit

of over Rs 12,350 crore during the year ended March 31, 2008. Backed by 100 glorious years of

experience in steel making, Tata Steel is among the top ten steel producers in the world with an existing annual

crude steel production capacity of 30 Million Tonnes Per Annum (MTPA). Established in 1907, it is the first

integrated steel plant in Asia and is now the world`s second most geographically diversified steel producer and

a Fortune 500 Company. Its main plant is located in Jamshedpur, Jharkhand, with its recent acquisitions; the

company has become a multinational with operations in various countries. The Jamshedpur plant contains the

DCS supplied by Honeywell. The registered office of Tata Steel is in Mumbai. The company was also

recognized as the world's best steel producer by World Steel Dynamics in 2005. The company is listed on

Bombay Stock Exchange and National Stock Exchange of India, and employs about 82,700 people (as of 2007).

Tata Steel has a balanced global presence in over 50 developed European and fast growing Asian markets, with

manufacturing units in 26 countries. It was the vision of the founder; Jamsetji Nusserwanji Tata., that on 27th

February, 1908, the first stake was driven into the soil of Sakchi. His vision helped Tata Steel overcome several

periods of adversity and strive to improve against all odds. Tata Steel`s Jamshedpur (India) Works has a crude

steel production capacity of 6.8 MTPA which is slated to increase to 10 MTPA by 2010. The Company also has
proposed three Greenfield steel projects in the states of Jharkhand, Orissa and Chhattisgarh in India with

additional capacity of 23 MTPA and a Greenfield project in Vietnam.

The TATA Steel story is a classic example of synergy leveraged through the inorganic route. In 2005, Tata Steel

acquired NatSteel Asia. This helped the company not only to establish a beachhead in seven countries across the

region, namely Singapore, Thailand, China, Malaysia, Vietnam, the Philippines and Australia, but also provided

it with a customer base for close to two million tonnes of steel. As a brand, NatSteel's strong equity in the region

was yet another strategic gain for Tata Steel. The company's strong human resources and management

effectiveness is also an inheritance of immense value. Operationally, NatSteel's finishing facilities across the

region provided Tata Steel with the necessary support for upstream capacity expansions in India, as well as

access to knowledge and expertise in downstream processing of bars and wire rods. The acquisition of

Millennium Steel in 2005, Thailand's dominant steel producer, still consolidated Tata Steel's gains from the

NatSteel deal. Millennium's three operating units gave the company a cumulative capacity to produce 1.2

million tonnes of steel per annum through the electric arc furnace route along with a long products rolling

capacity of 1.7 million tonnes a year. Geared towards the construction and automotive sector, Millennium

provided Tata Steel strategic space in the heart of the ASEAN region, enhancing its market position in South

East Asia. Apart from the existing backward integration with its own iron ore mines and collieries, the company

has enhanced its competitive advantage in raw materials further, buying a five per cent interest in the

Carborough Downs coal project located in Queensland, Australia. Its backward and forward integration plans

include the development of a deep-sea port in Orissa. Through investments in Corus, Millennium Steel

(renamed Tata Steel Thailand) and NatSteel Holdings, Singapore, Tata Steel has created a manufacturing and

marketing network in Europe, South East Asia and the pacific-rim countries. Corus, which manufactured over

20 MTPA of steel in 2008, has operations in the UK, the Netherlands, Germany, France, Norway and Belgium.
Tata Steel Thailand is the largest producer of long steel products in Thailand, with a manufacturing capacity of

MTPA. Tata Steel has proposed a 0.5 MTPA mini blast furnace project in Thailand. NatSteel

Holdings produces about 2 MTPA of steel products across its regional operations in seven countries.

Tata Steel, through

its joint venture with Tata BlueScope Steel Limited, has also entered the steel building and construction

applications market. The iron ore mines and collieries in India give the Company a distinct advantage in raw

material sourcing. Tata Steel is also striving towards raw materials security through joint ventures in Thailand,

Australia, Mozambique, Ivory Coast (West Africa) and Oman. Tata Steel has signed an agreement with Steel

Authority of India Limited to establish a 50:50 joint venture company for coal mining in India. Also, Tata Steel

has bought 19.9% stake in New Millennium Capital Corporation, Canada for iron ore mining.

Exploration of opportunities in titanium dioxide business in Tamil Nadu, ferro-chrome plant in South Africa

and setting up of a deep-sea port in coastal Orissa are integral to the Growth and Globalisation objective of Tata

Steel.

. Tata Steel India is the first integrated steel company in the world, outside Japan, to be awarded the Deming

Application Prize 2008 for excellence in Total Quality Management. The Tata Group made a huge acquisition

in 2006 when it acquired the Dutch company Corus for more than USD12 billion, making Tata-Corus one of the

world's largest steelmakers.

 Vision

ire to be the global steel industry benchmark for Value Creation and Corporate Citiz

We make the difference through:

Our people, by fostering team work, nurturing talent, enhancing leadership capability and acting with pace,

pride and passion.

Our offer, by becoming the supplier of choice, delivering premium products and services, and creating value for

our customers.

Our innovative approach, by developing leading edge solutions in technology, processes and products.

Our conduct, by providing a safe working place, respecting the environment, caring for our communities and

demonstrating high ethical standards.

Mission
Consistent with the vision and values of the founder Jamsetji Tata, Tata Steel strives to strengthen India’s

industrial base through the effective utilization of staff and materials. The means envisaged to achieve this are

high technology and productivity, consistent with modern management practices.

Tata Steel recognizes that while honesty and integrity are the essential ingredients of a strong and stable

enterprise, profitability provides the main spark for economic activity.

Overall, the Company seeks to scale the heights of excellence in all that it does in an atmosphere free from fear,

and thereby reaffirms its faith in democratic values.

 MANAGEMENT AND BOARD OF DIRECTORS

The operations and successes of the Tata Steel Group are taken care of by its capable management and Board of
Directors. At the helm of affairs are the Company’s Directors, whose profiles offer a brief introduction and help
get acquainted with them…

Board of Directors

Mr. Ratan Tata Chairman

Mr. Ratan N. Tata is presently Chairman of Tata Sons, the holding company of the Tata Group and also
Chairman of the major Tata companies including Tata Steel. It is under his leadership that the Company has
scaled new heights and established a presence as one of the leading steel conglomerates in the world.

Mr. B. Muthuraman VIice Chairman

Mr. Muthuraman joined Tata Steel in 1966 as a Graduate Trainee. On completion of training, he worked in the
areas of Iron-making and Engineering Development for ten years and then moved to the Marketing & Sales
Division and spent nearly twenty years there, ultimately rising to the position of Vice President.
Mr. H.M. Nerurkar Managing Director

Hemant M. Nerurkar has been Executive Director of India and South East Asia of Tata Steel Limited since
April 9, 2009 and Managing Director since October 10, 2009. Mr. Nerurkar also serves as the Vice President of
Kalinganagar Project, Orissa.

Mr. Nusli Neville Wadia Independent, Non - Executive Director

A textile magnate and an important person in the real-estate business, Mr. Nusli Neville Wadia belongs to an
illustrious family of Indian Parsi entrepreneurs. He happens to be the grandson of Muhammad Ali Jinnah,
founder of Pakistan.

Mr. S. M. Palia Independent, Non - Executive Director

Mr. S M Palia, a B.Com., LL.B., CAIIB and AIB ( London ) is a Development Banker by profession. He was
with IDBI from 1964 to 1989 during which period he held various responsible positions including that of an
Executive Director to the Company.
Mr. Suresh Krishna Independent, Non - Executive Director

Mr. Suresh Krishna received a Bachelor of Science degree from Madras Christian College in 1955 and an M.A.
in literature from the University of Wisconsin in 1959. He did his post-graduate work in literature at the
University of Munich, Germany.

Mr. Ishaat Hussain Not Independent, Non - Executive Director

Mr. Ishaat Hussain graduated in economics from St Stephens College, New Delhi. He is a fellow of the Institute
of Chartered Accountants in England and Wales (FCA).

Dr. Jamshed J. Irani Not Independent, Non - Executive Director

Dr. Jamshed J. Irani is a renowned personality in the Iron and Steel Industry. He led Tata Steel's pursuit of
business excellence from 1988 through the decade into the nineties.
Mr. Subodh BhargavaIndependent, Non - Executive Director

Mr. Bhargava is a Mechanical Engineer from the University of Roorkee. He joined the Company as a Director
in 2006.

Mr. Jacobus Schraven Independent, Non - Executive Director

Jacobus Schraven (65) was appointed a non-executive director and Deputy Chairman of Corus in December
2004.

Mr. Andrew Robb Independent, Non - Executive Director

Mr. Andrew M. Robb is a Fellow of the Chartered Institute of Management Accountants and holds a Joint
Diploma in Management Accounting.

Mr. Kirby Adams Not Independent, Non - Executive Director

 MAJOR PLAYERS OF STEEL IN INDIA

PUBLIC SECTOR

1. STEEL AUTHORITY OF INDIA LIMITED (SAIL)

Steel Authority of India Limited (SAIL) is a company registered under the Indian Companies Act, 1956 and is

an enterprise of the Government of India. It has five integrated steel plants at Bhilai (Chattisgarh), Rourkela

(Orissa), Durgapur (West Bengal), Bokaro (Jharkhand) and Burnpur (West Bengal). SAIL has three special and

alloy steel plants viz. Alloy Steels Plant at Durgapur (West Bengal), Salem Steel Plant at Salem (Tamilnadu) and

Visvesvaraya Iron & Steel Plant at Bhadravati (Karnataka). In addition, a Ferro Alloy producing plant

Maharashtra Elektrosmelt Ltd. At Chandrapur, is a subsidiary of SAIL. SAIL has Research & Development

Centre for Iron & Steel (RDCIS), Centre for Engineering & Technology (CET), SAIL Safety Organisation

(SSO) and Management Training Institute (MTI) all located at Ranchi; Central Coal Supply Organisation

(CCSO) at Dhanbad; Raw Materials Division (RMD), Environment Management Division (EMD) and Growth

Division (GD) at Kolkata. The Central Marketing Organisation (CMO), with its head quarters at Kolkata,

coordinates the country-wide marketing and distribution network.

 2. RASHTRIYA ISPAT NIGAM LTD. (RINL)

RINL, the corporate entity of Visakhapatnmam Steel Plant (VSP) is the first shore based integrated steel plant

located at Visakhapatnam in Andhra Pradesh. The plant was commissioned in August 1992 with a capacity to

produce 3 million tonne per annum (mtpa) of liquid steel. The plant has been built to match international

standards in design

and engineering with state-of- the- art technology incorporating extensive energy saving and pollution control

measures. Right from the year of its integrated operation, VSP established its presence both in the domestic and

international markets with its superior quality of products. The company has been awarded all the three

Internationalstandards certificates, namely, ISO 9001:2000, ISO 14001: 1996 and OHSAS 18001: 1999. RINL

was accorded the prestigious ‘Mini Ratna’ status by the Ministry of Steel, Govt. of India in the year 2006 and

the company is gearing up to complete the ambitious expansion works to increase the capacity to 6.3 mtpa by

2009. RINL has prepared a road map to expand the plant’s capacity up to 16 mtpa in phases.

3. HINDUSTAN STEELWORKS CONSTRUCTION LTD.(HSCL)

HSCL was incorporated in June 1964 with the primary objective of creating in the Public Sector an organization

capable of undertaking complete construction of modern integrated Steel Plants. HSCL had done the

construction work of Bokaro Steel Plant, Vizag Steel Plant and Salem Steel Plant from the inception till

commissioning and was associated with the expansion and modernisation of Bhilai Steel Plant, Durgapur Steel

Plant, IISCO (Burnpur) and also Bhadravati Steel Plant. With the tapering of construction

activities in Steel Plants, the company intensified its activities in other sectors like Power, Coal, Oil and Gas.

Besides this, HSCL diversified in Infrastructure Sectors like Roads/Highways, Bridges, Dams, Underground
Communication and Transport system and Industrial and Township Complexes involving high degree of

planning, coordination

and modern sophisticated techniques. The company has developed its expertise in the areas of Piling, Soil

investigation, Massive foundation work, High rise structures, Structural fabrication and Erection, Refractory,

Technological structures and Pipelines, Equipment erection, Instrumentation including testing and

commissioning. The company has also specialised in carrying out Capital repairs and Rebuilding work

including hot repairs of Coke Ovens and Blast Furnaces and other allied areas of Integrated Steel Plants.

4. MECON LTD.

MECON is one of the leading multi-disciplinary design, engineering, consultancy and contracting organization

in the field of iron & steel, chemicals, refineries and petrochemicals, power, roads & highways, railways, water

management, ports and harbours, gas & oil, pipelines, non ferrous, mining, general engineering, environmental

engineering and other related/ diversified areas with extensive overseas experience. MECON, an ISO: 9001-

2000 accredited company, registered with World Bank (WB), Asian Development Bank (ADB), European Bank

for Reconstruction and Development (EBRD), African Development Bank (AFDB), and United Nations

Industrial Development Organisation (UNIDO), has wide exposure and infrastructure for carrying out

engineering, consultancy and project management services for mega projects encompassing architecture & town

planning, civil works, structural works, electric, air conditioning & refrigeration, instrumentation, utilities,

material handling & storage, computerization etc. MECON has collaboration agreements with leading firms

from the USA, Germany, France, Italy, Russia, etc. in various fields. The authorized share capital of the

company is Rs. 10,400 lakh (previous year Rs. 4,100 lakh) against which the paid up capital is Rs. 10,313.84

lakh (previous year Rs. 4,013.84 lakh). All the shares are held by the Government of India.
 PRIVATE SECTOR
The private sector of the Steel Industry is currently playing an important and dominant role in production and

growth of steel industry in the country. Private sector steel playershave contributed nearly 67% of total steel

production of 38.08 million tonnes to the country during the period April-December, 2007. The private sector

units consist of bothmajor steel producers on one hand and relatively smaller and medium units such as Sponge

iron plants, Mini Blast Furnace units, Electric Arc Furnaces, Induction Furnaces,Rerolling Mills, Cold-rolling

Mills and Coating units on the other. They not only play an important role in production of primary and

secondary steel, but also contribute substantial value addition in terms of quality, innovation and cost effective.

1. TATA STEEL LTD.

Tata Steel has an integrated steel plant, with an annual crude steel making capacity of 5 million tonnes located

at Jamshedpur, Jharkhand. Tata Steel has completed the first six months of fiscal 2007-08 with impressive

increase in its hot metal production. The hot metal production at 2.76 million tonnes is 4.6%more compared to

the corresponding period of the previous year. The crude steel production during the period was 2.43 million

tonnes which is marginally lower than the production of 2.45 million tones last year. The saleable steel

production was at a lower level during the period April September, 2007 (2.34 million tonnes) compared to the

corresponding period of last year

(2.36 million tonnes). Tata Steel is continuing with its programme of expansion of steel making capacity by 1.8

million tonnes to reach a rated capacity of 6.8 million tonnes. The Project is reported to be moving ahead of

schedule and is likely to be commissioned by May 2008 against the original schedule of June 2008. The

Company has planned to take the capacity to 10 million tonnes by the fiscal year 2010. Tata Steel’s Greenfield

projects in Orissa and Chattisgarh are progressing on schedule with placement of equipment order for

Kalinganagar Project in Orissa and commencement of the land acquisition process. Jharkhand Project is

awaiting announcement of Relief & Rehabilitation policy of the State Government.

2. ESSAR STEEL LTD. (ESL)

Essar Steel Holdings Ltd. (ESHL) is a global producer of steel with a footprint covering India, Canada, USA,

the Middle East and Asia. It is a fully integrated flat carbon steel manufacturer—from iron ore to ready-to-

market products. ESHL has a current global capacity of 8 million tonnes per annum (MTPA). With its

aggressive expansion plans in India and other parts of Asia and North America, its capacity is likely to go up to

25 MTPA by 2012. Its products find wide acceptance in highly discerning consumer sectors, such as

automotive, white goods, construction, engineering and shipbuilding. Essar Steel Ltd., the Indian Company of

Essar Steel Holdings Limited, is the largest steel producer in

western India, with a current capacity of 4.6 MTPA at Hazira, Gujarat, and plans to increase this to 8.5 MTPA.

The Indian operations also include an 8 MTPA beneficiation plant at Bailadilla, Chattisgarh which has world’s
largest slurry pipeline of 267 km to transport beneficiated Iron Slurry to the pellet plant, and an 8 MTPA pellet

complex at Visakhapatnam. The Essar Steel Complex at Hazira in Gujarat, India, houses the world’s largest

gas-based single location sponge iron plant, with a capacity of 4.6 MTPA. The complex also houses the steel

plant and the 1.4 MTPA cold rolling complex. The steel complex has a complete infrastructure setup, including

a captive port, lime plant and oxygen plant. Essar Steel produces highly customized valueadded products

catering to a variety of product segments and is India’s largest exporter of flat products, selling close to half of

its production to the highly demanding US and European markets, and to the growing markets of South East

Asia and the Middle East. The company’s products conform to quality specifications of international quality

certification agencies, like ABS, API, TUV Rhine Land and Lloyd’s Register. Essar Steel is the first Indian

steel company

to receive an ISO 9001 and ISO 14001 certification for environment management practices. Essar Steel utilizes

Hot Briquetted Iron-Direct Reduced Iron (HBIDRI) technology supplied by Midrex Technology, USA along

with four 150 tonnes DC electric arc furnaces imported from Clecim, France. The Hazira unit of Essar Steel is

equipped with 5.5 million tonnes per annum (MTPA) hot briquetted iron plant, 4.6 MTPA electric are furnace,

4.6 MTPA continuous caster, 3.6 MTPA hot strip mill and 1.4 MTPA Cold Rolling Mill. During the year 2007-

08, Essar was awarded costs ISO/TS 16949 and OHSAS 18000 certification.

3. JINDAL STEEL & POWER LTD. (JSPL)

Jindal Steel & Power Limited is one of the fast growing major steel units in the country. The Raigarh plant of

JSPL has a present capacity of 1.37 million tonne per annum (MTPA) sponge iron plant, 2.40 MTPA Steel

Melting Shop (SMS), 1.0 MTPA plant Mill, 2.30 sinter plant, 0.8 MTPA coke oven and a 330 Mega Watt

captive power plant. During the year 2006-07, the company produced 1.19 million tonnes of sponge iron,
0.8million tonnes of various steel products, 0.57 million tones of hot metal and 0.21 million tonnes of rolled

products. The performance of JSPL during April-October 2007-08 was 0.68 million tonnes of sponge iron, 0.72

million tonnes of steel products (slabs/blooms/billets/rounds), 0.68 million tones of hot metal, 0.27 million

tonnes of rolled products and 0.11 million tonnes of plates.

MARKET SHARE OF LEADING PLAYERS IN IRON AND STEEL

INDUSTRY

COMPANY PRODUCTION OF STEELMARKET SHARE (IN MILLION TONNES)(IN``PERCENTAGE

TERMS)

SAIL 13.5 32 %

TISCO (Tata Steel) 5.2 11 %

RNIL 3.5 8%

ESSAR, ISPAT, JSWL 8.4 19 %

S OTHERS 14.5 30 %

TOTAL 45.1 100 %

Therefore, it can rightly be concluded that the liberalization of industrial policy and other initiatives taken by

the Government have given a definite impetus for entry, participation and growth of both private and public

sector in the steel industry.

TRENDS IN PERFORMANCE APPRAISAL SYSTEM

Performance appraisal in its traditional from known as ACR-Annual Confidential Report is often misused than

used. Performance appraisal has now been recognized as a HRD function. In the last decade many organizations

have reviewed and changed their managerial appraisal systems.

1) There is a trend away from the composite appraisals with multiple objectives (e.g. performance planning,

development rewards and promotions)to separate systems for different systems for different clusters of

objectives.

2) There is a move away from isolated appraisal system to the business linked one .

3) There is shift away from closed confidential type to open dialogue and discussions based system.

4) There is a movement quantitative (pseudo objective) to qualitative (interactive, improvement and

process oriented) system.

5) There is a movement away from boss assessed feedback to 360-degrees feedback involving

customers, peers, team members, subordinates etc. in addition to supervisors.

6) There is also a trend away from elaborate systems to simple ones.

7) There is a shift from standard systems to flexible and group specific ones.

8) There is a movement from result oriented systems to process oriented system.

9) There is a movement from the assessment of individual performance to the development of

team performance.

10) There is also a movement from complacency to experimentation through continuous research change.

Performance appraisal refers to the assessment of an employee’s actual performance, behavior on jobs, and his

or her potential for future performance. Appraisal has several objectives but the main purposes are to assess

training needs, to effect promotions, and to give pay increases.

Appraisal of performance proceeds in a set pattern. The steps involved are –defining appraisal objectives,

establishing job expectations, designing the appraisal programme, conducting performance interview, and using

appraisal data for different HR activities.

Two important contemporary techniques of performance appraisal include 360º appraisal and goal setting

approach to appraisal also known as ‘Managing by Objectives’.

However, performance appraisal system also serves to be the backbone of any industry in the corporate world

and since the project report focuses on the role played by performance appraisal in industrial establishment so

review of research is done by also analyzing following secondary data.

The data source: Secondary Data.

The research approach: Survey Method.

The research instrument: Journals , Books , Newspaper Articles.

4 Latest Technologies in Steel Industry
The basic steel production in the steel industry, processes are based on three steps which are raw material
preparation, ironmaking then steelmaking. All these processes can be ended with many different types of steels for
specific needs.

Methods for fabrication in the steel industry have advanced essentially since industrial production began in the late
19th century. Current techniques are as yet dependent on the similar fundamental ground as the first Bessemer
Process, which uses oxygen to bring down the carbon content in iron.

The ironmaking step includes the crude feeds of iron metal, coke, and lime being melted in a blast furnace.
Additionally, the final liquid iron still contains 4-4.5 percent carbon and different pollutions that make it fragile.

Steelmaking has two essential techniques: BOF (Basic Oxygen Furnace) and the more present-day EAF (Electric
Arc Furnace). Essential shaping, for example, hot rolled and cold rolled strips, rods, tube rounds, structural shapes,
rails. Afterwards, secondary procedures that are coating, heat treatment, surface treatment, metal cutting give the
steel its last shape and properties

Despite all challenges in the steel industry such as evolving customer demands, geopolitical uncertainty, the impact
of e-mobility, the effect of digitalization, some technologies provide more efficient processes, higher quality steels,
environmental-friendly production, quality consistency, etc. Here are four technological developments in the steel
industry:

Different Methods in the Steel Industry

1. The ORC Technology

Thermodynamically heat changes to work in a cycle called Rankine Cycle and this system depends on the water
gives around 85% of overall power generation.

The Organic Rankine Cycle has the same working principle as the Rankine Cycle but ORC depends on a turbo
generator running. It transforms heat energy into mechanical energy and electrical energy at last. The difference is
rather than creating steam from water, the ORC technology vaporizes a natural liquid. Therefore it provides a
slower turn of the turbine, reduces pressure, and no abrasion of the metal parts and sharp edges. This system can
produce enough power from waste up to 700 houses around. Also, the carbon footprint of the facilities from the
steel industry decreases by about 10.000 tons of CO while removing the water need for cooling systems.
2

2. Hybrit Process
The collaborative task of three Swedish organizations, SSAB, LKAB, and Vattenfall started the project called
‘Hybrit’ (‘Hydrogen Breakthrough Ironmaking Technology’). The goal is to create zero-carbon in steel production
beginning from 2020.

Conventional production of pig iron includes coke and iron ore to remove oxygen on the other hand this process
releases to the atmosphere hazardous gas carbon dioxide. The mentioned new generation procedure utilizes
hydrogen, which besides can remove the oxygen in the iron ore, yet the outcome is water vapor instead of carbon
dioxide. Change existing procedures to remove characteristic conditions on petroleum products. In this way, the
Hybrit process idea is totally becoming green steel.

The Hybrit process falls within several advancements that are the utilization of hydrogen as a decreasing agent,
with the hydrogen being generated through electrolysis depending on sustainable power. From a natural point of
view, the most significant benefit of this is the fumes from this procedure is water rather than carbon dioxide.

The products coming HDR (Hot Direct Reduction) process out is named DRI (Direct Reduced Iron) or “sponge
iron) which is fed into BOF or EAF mixed with an appropriate amount of scrap, and further prepared into steel. In
spite of the fact that this particular blend of procedures has not been executed at the business scale. A few of the
individual segments are as of now broadly utilized in the worldwide steel industry. Numerous parts of the
HDR/EAF arrangement have been tried and sent in modern settings but key difficulties still remain.
 3. Jet Process
Particularly equipment and robotization have been improved and optimized within the most recent years to
completely consent to real standards. One of the latest advancements for exceptional converters is the Jet Process.
General proficiency of over half is come to and a wide scope of scrap rates can be handled in an exceedingly
profitable way. An innovative way to amplify scrap and HBI (Hot Briquetted Direct Reduced Iron) rates in
converter steelmaking.

The internal energy of the hot metal is discharged during the oxygen-blowing step make it conceivable to feed
around 20% scrap converters. Providing external power allows to make the rate up to around 30%. This additional
power usually can be given by electricity or coal.

The Jet Process is designed to take advantage of the chemical energy of coal more efficiently and cost-effectively
in the converter. Scrap metal additions can be higher without external energy in this way. Also, the high
adaptability of the system makes it easier to implement. Hypothetically, scrap charge rates from 0 to 100% are
conceivable with this adaptable procedure. No coal addition is necessary up to 30% scrap charges. To increase the
adaptability it is designed a modular converter which enables the fast installation of a conventional BOF converter
base and an oxygen blowpipe, thereby enabling the converter to be quickly installed to operate as a typical BOF
converter.

4. Molten Oxide Electrolysis

Molten Oxide Electrolysis is an unconventional electrometallurgical system that allows quick production of metal
in the liquid state from oxide raw material. It promises considerable simplification of the whole process and
essential energy need minimization. Molten Oxide Electrolysis has been proved to utilize anode materials which
are graphite for use with ferro-alloys and titanium and iridium for use with iron. It is needed to overcome several
challenges to produce metal without process carbon such as process temperature, corrosion of metals considering
electrolysis conditions, and abrasion of refractory materials.

Still, it offers exceptional properties in terms of applicability to multiple metals as well as high-temperature
operations to produce liquid metal. A review of the transport properties of molten oxides shows that an
unprecedented yield can be predicted as a promising feature for tonnage production in the steel industry.

Molten Oxide Electrolysis advancements created at the Massachusetts Institute of Technology. Professor Donald
R. Sadoway’s lab proved that it could be possible to produce emission-free steel by producing low-cost inert anode
at the lab scale with help from NASA, the American Iron and Steel Institute, and the Deshpande Center at MIT.
Looking at the state of the technology in electrode materials, it appears that quantitative design criteria for both
cathode and anode continue to be developed.
 JOURNAL ARTICLES

1. Title :- “A New Framework for Selection of the Best Performance Appraisal Method”

Author :- Mostafa Jafari , Atieh Bourouni , Roozbeh Hesam Amiri.

Abstract :- Performance appraisal is one of the most important processes in human resource management,

because it has a great effect on both the financial and program components of any organization. There is a

variety of methods for the appraisal of employees' performance. Obviously, no method can claim that it has an

integrated approach in performance appraisal. Therefore, human resource managers should select an appraisal

method which is most efficient in their organizations. In this paper, we propose a framework for the selection of

appraisal methods and compare some performance appraisal methods in order to facilitate the selection process

for organizations. The value of this framework is that, with use of it, organisations can evaluate their

performance appraisal method with respect to the key features of it before implementing any method as well as

expending extra costs. This framework is theoretical in nature, and is build based on a review of related

literature.
2. Title:-“Function of performance appraisal in career development”

Authors :- Baldwin, Jennifer

Abstract :- The design of a performance appraisal system may be considered an unusual topic in the field

of career development. However, it is considered most relevant in the current employment climate for graduates

given the repeated emphasis on career development at various stages of the employment process. There has

been a growing emphasis since the mid-1970s on employees' needs rather than just organizational needs, and a

recognition of the strategic value of employees being developed to their best potential. Organizations have

become increasingly aware that the effective development of their employees' skills and knowledge has benefits

for the whole organization. Career development (or employee or professional development) is a thread that runs

through each stage of this discussion of the design of a performance appraisal system. This issue of career

development may also be observed in promotional brochures and information sessions given by recruiters of

graduates of tertiary institutions. Much is made of training and development opportunities as organizations seek

to attract the brightest and best graduates to their graduate management trainee programs. Performance

appraisal can be a crucial factor in the setting of career goals and the perception of job satisfaction leading to

increased motivation and productivity.

3 Title:-“ Innovative human resource management and corporate

performance in the context of economic liberalization in India”

Authors :- Ashok Som

Abstract :- The Indian economy was forced to adopt a structural adjustment programme at the beginning of

1991. The structural adjustment programme or liberalization initiated the process of the opening up of an

otherwise closed economy of India. Liberalization created a hypercompetitive environment and to respond to

this turbulence, Indian organizations adopted innovative changes in their HRM practices. Current research

shows that HRM practices are important for enhanced corporate performance but little has been reported on the
effect of HRM practices and corporate performance in the context of economic liberalization of India. This

study tries to understand the role of innovative HRM practices and specifically questions how HRM practices,

such as the role of HR department, recruitment, retraining and redeployment, performance appraisal and

compensation, enhance corporate performance during the change process. A multiple-respondent survey of 69

Indian organizations was undertaken to study the impact of innovative HRM practices on firm performance.

The survey found that the innovative recruitment and compensation practices have a positive significant

relationship with firm performance. It was observed that recruitment, the role of the HR department and

compensation practices seem to be significantly changing within the Indian firms in the context of India’s

economic liberalization. The synergy between innovative HRM practices was not significant in enhancing

corporate performance during the liberalization process.

4 Title:-“ The Effects of Human Resource Management Practices on

Productivity: A Study of Steel Finishing Lines”

Authors :- Casey Ichniowisky , Kathryn Shaw and Giovanna Prenushi

Abstract :- This study investigate the productivity effects of innovative employment practices using data

from a sample of 36 homogeneous steel production lines owned by 17 companies. The productivity regressions

demonstrate that lines using a set of innovative work practices, which include incentive pay, teams, jlexible job

assignments, employment security, and training, achieve substantially higher levels

of productivity than do lines with the more traditional approach, which includes

narrow job de$nitions, strict work rules, and hourly pay with close supervision. Our results are consistent with

recent theoretical models which stress the importance of complementarities among work practices.
 RESEARCH
METHODOLOGY
 RESEARCH METHODOLOGY

The formidable problem that follows the task of defining the research problem is the preparation the design of

the research project, popularly known as the “research design”. Decisions regarding what, where, when, how

much, by what means concerning an inquiry or a research study constitute a research design. “A research design

is the arrangement of conditions for collection and analysis data in a manner that aims to combine relevance to

the research purpose with economy in procedure.” In fact, the research design is the conceptual structure within

which research is conducted; it constitutes the blueprint for the collection, measurement and analysis of data. As

such the design includes outline of what the researcher will do from writing the hypothesis and its operational

implications the final analysis of data.

Therefore, this study outline following designing decisions:-

(i) What is the study about?

The study comprises critical analysis of various functions, methods and scope of performance appraisal in

different companies prevailing in steel industry.

(ii) Why is the study being made?

The main purpose of study is to help in understanding various functions, role and importance of performance

appraisal system and identify the developmental needs of employees in steel industry. It also focus on the

impact of performance appraisal system on industrial relations and help in finding out various tools for bridging

the communication gap between employees and supervisors.

(iii) What type of data is required?

Data comprising the impact of performance appraisal system on steel industry is required for the study.

Therefore, journal articles and news article from leading business magazines and news papers did the needful.

(iv) Where can the required data be found?

Since data is secondary therefore most of the review was done with help of internet, journals, newspaper

articles and various books .

(v) What periods of time will the study include?

This study is the result of 2 – 3 months of research.

(vi) What techniques of data collection will be used?

To accomplish the objectives of the study secondary data is used.

(vii) How will the data be analyzed?

Data is analyzed on the basis of journal, newspaper articles and the core knowledge gained on performance

appraisal system from few books and steel industry. A complete review has been done on role of performance

appraisal system on steel industry and its impact in gaining competitive advantages. Therefore, for this purpose

role of performance appraisal has been studied in few companies prevailing in the steel industry.

(vii) In what style will the report be prepared?

Report is distributed in Chapters completing all the requirements of the research.

FINDINGS AND
ANALYSIS
 FINDINGS AND ANALYSIS

The main objective of this study is to analyse the role of performance appraisal and system implementation in

TATA Steel. Since the research is empirical in nature that’s why following aspects of various organization

structure and design of the company have been covered.

ORGANIZATION STRUCTURE AND DESIGN

TATA STEEL

TATA STEEL is a young, dynamic organization and is going strong on the stock market.

1- The company is well aware of the dynamic environment of software, it is operating and in order to keep

it with the pace of the environment it believes in constant up gradation of courses. Organization

structure and design of the company is such that it supports this change.

2- Tata steel has a matrix kind of a structure wherein it takes the form of combination of structures. Matrix

structures are adopted became there is more than one factor around which the structure can be built.

3- This matrix structure at tata steel ltd. improves the quality of decision-making where interest conflicts

arise and direct contacts replaces bureaucracy

4- . This increases the motivation of the managers and development of wider involvement in strategies.

Although at times the company faces high risk of dilution of priorities became e people do not know

who is responsible for what.

 5- An organization is a network of authority, responsibility and relationships. Different organization

structure consists of different type of relationships.

Performance Appraisal at Tata Steel

While on the job, performance reviews of every employee are done every quarter. The reviews are done with a

view to helping the individual excel at his/her workplace. In case there are any training requirements, these are

noted and acted upon in the coming quarter. Also, the goals and objectives for the employee are re-visited for

The performance appraisal mechanism is carried out at Tata steel for promotional purposes.

These are done so as to motivate the employee and improve his performance level. The method is as follows:

a) Establishment of performance standards with the employees

b) The goals are set mutually as per measurable standards.

c) The actual performance is hence measured.

d) After measuring of the actual performance, the same is compared with the standards set

e) The appraisal is then discussed with the employees.

f) And finally, if need arises corrective action is initiated. For this purpose the corrective action is actually

identified through brainstorming exercises initiated by the departmental heads at all the Tata Steel. It is

then measured as a tool to evaluate the past performances of the employees.

Some of the methods used at Tata Steel are:

1. Key Performance Index

2. 360 Degree Feedback

3. Paired Comparisons

4. Behaviorally Anchored Rating Scale

1. KPI-Key Performance Index

It is based on the performance level of the employee generally classified on the basis of:

 Targets achieved

 Ratings through students’ feedback forms

 Punctuality and regularity

 Day to day performance

This is given after every module at the centers.

Thus we can observe that the appraisal system is not a biased one but based on performance and productivity

basis. All the respective heads of the employee together with the senior persons at the center brainstorm and

then give the promotion.

2. 360 Degree Feedback

This feedback system involves the participation of:

 Coworkers – 40%

 Subordinates - 20%

 Superior - 40%

Thus the feedback given by these members at Tata Steel is considered under a holistic view and then the

employee is given a performance appraisal. This evaluation method involves 40% feedback from the coworkers

which says that the employee should not only maintain good rapport with the senior or junior but majorly with

the coworkers also.

3. Paired Comparisons

The evaluator compares all possible pairs of subordinates on their overall ability to do the job. Due to the

subjectivity of evaluating overall performance some managers me e a number of different job related

dimensions when comparing.

4. Behaviorally Anchored Rating Scale (BARS)

It is a sophisticated method of evaluating the employee based on the employee behavior. It is a numerical scale

that is anchored by the seniors of the organization at various centers. This is highly confidential and the

information is sent in sealed envelopes and opened only at the time of the final evaluation. There is no further

discussion regarding this scaling, thus it is not given enough weightage.

 Key Observations at TATA STEEL

In the present performance appraisal system of TATA STEEL we found the following loop holes: If the

appraisee has good terms with the reviewing officer and does not have a smooth relationship with the reporting

officer, in such case the reporting officer is sometimes forced by the reviewing officer to give better score to the

appraisee.
FINDINGS
 SURVEY FINDINGS

In this section, basic data of Tata Steel is presented on various attributes of performance appraisal.

Frequency and frequency percent scores was computed for the company and thus it enlighten the following

points:-

 Promotions were and known to most of the top and senior management while middle and lower

management were a bit not clear about it. This could be attributed to the fact that senior and top

management were more involved in decision making and policy formulation than are the middle and

lower management.

 At the lower levels of the organization, performance can be quantified, and the managers are made

accountable at the higher echelons the tasks are too complex and therefore cannot be assessed on the

basis of quantified performance

 Most of the managers feel that the mechanism for potential appraisal is not adequate.

 The company believed that self appraisal is the best for managers and above.

 To improve interpersonal communication and behavior assessment by peers and subordinates is

essential.

 The performance of the employees is not regularly monitor and the required feedback is provided to the

subordinates from time to time. The appraisals are conducted at fixed intervals. The company believes in

using appraisal for rewarding and increments.

 It would not be wrong to say that interpersonal relations and personal biases (i.e. liking and disliking)

influence the appraisals in the company

CONCLUSION
 CONCLUSIONS

1. Company proves that a major amount of work towards developing an effective and efficient

performance appraisal system has not been accomplished to the fullest.

2. It seems company is genuinely interested in improving the efficiency and utility of performance

appraisal system to succeed in today’s dynamic environment;

3. Systems of innovative HRM practices have large effects on production workers' performance, while

changes in individual employment practices have little or no effect.

Outward Orientation Performance Appraisal System

The appraisal system should be more sensitive and responsive to current competitive environment. This is
possible through making the company :

 Quality conscious in products and services to match international standards.

 Customer oriented (internally as well as externally)

 Cost effective

 Technology oriented

 Focused towards collaboration and teamwork

 People oriented

 Focused towards performance standards

 Focused towards values and culture that would help unbottle hidden talent.

In achieving the above, the PA system have a catalytic role to play.

PERIODIC PERFORMANCE REVIEW AND PLANNING:
There should be some aspect in the PA forms, which deals with the effect of Internal Influences, organizational
influences and external influences on performance of employee to make the PA system more sensitive to
changes.

 Increase awareness of company goals in order to integrate company and individual expectations.

 Conducting training workshops for appraisers to remove biases and errors in appraisal.

 Increasing transparency and open communication and minimizing confidentiality in performance review
discussions.

The work done towards modifying and developing performance appraisal systems, time to time should be
continued.

Integrating TQM into Performance Appraisal

 Individual rewards should be declined with the PA system. The focus should shift to team rewards. To
recognize individual excellence, the team rewards. To recognize individual excellence, the team should
recommend rewards to tone up motivation levels in the entire team.

 Continuous feedback and transparency in every system

 Focus on customer delight, both internal and external

Linkage with Rewards

Good performers should be recognized and rewarded, whereas weak performers need to be encouraged to
become better performers. PA systems when liked with individual rewards and promotions create more
problems than they help in motivating people. They encourage fewer employees and discourage more. They do
not develop the team spirit but rather enhance interpersonal comparisons and power politics. The focus should
be shifted from rewarding the performance of few to development of performance of many.

However there is also a need for recognition and rewarding good work. Alternative systems of rewarding with
multiple reward/recognition mechanism are needed. But these systems should be separated from other systems
(like career planning).
Role of HRD
 HRD should develop relevant competencies and work through empowering the line managers.

 Development of subordinates and teams should be key function of line managers.

 HRD should facilitate the development of behavioral, managerial and technical (multi functional)
competencies in line managers.

“Role analysis” should find a place in the company. “Role directories should be published with key functions
for each role.
 IMPLICATION OF THE PROJECT

In a simple way performance appraisal is meant to be an exercise to value an estimate what a person has done

and how has he done. The nature of Performance appraisal and its effectiveness depends a great deal on how

human resources in the industry are viewed and treated. People are to be treated as resources of the industry.

Unlike the other resources, the human resources have the capability of expanding to unlimited extents with

proper investment in human capabilities.

Therefore, an organization interested in developing the capabilities of its employees, should understand the

nature and capabilities required to perform different functions as well as the dynamics underlying the

development of these capabilities in an organizational content.

These capabilities can be considered to fall under four categories. They are:-

(i) Technical capabilities

(ii) Managerial capabilities

(iii) Behavioral (human) capabilities

(iv) Conceptual capabilities

The extents to which the various capabilities are required for the performance of the job differ from level to

level in the organizational hierarchy.

 SUSSESTIONS
AND RECOMMENDATIONS
 RECOMMENDATIONS

1. The economic indicators are all favorable for Growth, temporally slump is ephemeral.

2. Company exudes optimism, thus, more stress relieving packages should be offered to the mentally

stressed staff.

3. Investment in infrastructure is crucial to step up demand for steel , therefore, in this respect the HR Dept

should attempt to obtain the maximum agreement of Managers in respect of needs and objectives and

purpose of the systems.

4. New technologies to use indigenous natural resources would have to be developed thorough expert

person performing their roles efficiently in personnel management.

5. Company should try to avoid employee resistance, which is associated with change worlds true change

follows instance. This for all kinds of systems be it Performance Appraisal.

6. Overtime should be taken care of at time of performance appraisal, which would motivate the

employees to perform better for longer hours.

7. Performance appraisal should be after at proper span of time.

LIMITATIONS
 LIMITATIONS

The project report carries with it few limitations, on which the accuracy of the text written will depend. This

study is cross-sectional and data were collected over two time periods but are still perceptive. Cross-sectional

data might create problems with respect to causality.

 The first and foremost limitation is regarding the sources of information. The information contained has

been obtained from sources believed to be reliable and in good faith, but which may not be verified

independently.

 Using several statistical tools derives the estimates. Hence the findings obviously carry all the

limitations of the statistical tools used.

 Same sets of data from different sources are different. Since not all the data are available from a single

source, an attempt has been made to standardize the data wherever required, which is essential to

maintain uniformity through out the project.

 The data set is restricted to observations on one very specific type of manufacturing production process.

This narrow focus eliminates many sources of heterogeneity that confound productivity comparisons in

more aggregate data and in more heterogeneous samples.

Finally, this study did not find evidence of the configuration argument and did not test the

contingency argument, but could find evidence in the universalistic or the best practice perspective. One way of

explaining this might be that due to the turbulent and hyper-competitive environment, firms are primarily

supportive of innovative, adaptive nature of high-involvement work systems. In other words, there may be some

restriction in range with regard to organizational environments that somehow undercut this study’s ability to

provide a full test of the contingency perspective.

BIBLIOGRAPHY
BOOK

1. Kothari,C.R.,Methods and Techniques,New Delhi,New Age International Pvt, Ltd., 2005

WEBSITES

1. www.google.com

2. www.wikipedia.org

3. https://sail. co. in

4. www.performance-appraisal.com/intro.html

5. www.tata steel.com

JOURNALS

1. A New Framework for Selection of the Best Performance Appraisal Method

2. Function of performance appraisal in career development

3. Innovative human resource management and corporate performance in the context of economic liberalization

in India.

4. The Effects of Human Resource Management Practices on Productivity: A Study of Steel Finishing Lines