A PROJECT REPORT ON PERFORMANCE MANAGEMENT AND PERFORMANCE APPRAISAL AT

ELECTRONICS CORPORATION OF INDIA LIMITED. Project report submitted in partial fulfillment for the award of degree of MASTER OF BUSINESS ADMINISTRATION By ALEKYA MUTHYALA KASU
(02008102)

Submitted to OSMANIA UNIVERSITY HYDERABAD ,500007 2008-2010

DECLARATION

I hereby declare that this Project Report entitled PERFORMANCE MANAGEMENT AND PERFORMANCE APPRAISAL at ELECTRONICS CORPORATION OF INDIA LIMITED, HYDERABAD, submitted to NAVA BHARATHI COLLEGE OF P.G STUDIES, BOLARUM, SECUNDRABAD is a bonafied work undertaken by me and to the best of knowledge this work is not submitted to any other university of institution for the award of any other degree, diploma, certificate or fellowship or published anytime before.

NAME: ALEKYA MUTHYALA KASU PLACE: HYDERABAD

SIGNATURE: DATE:

ABSTRACT
PAY FOR PERFORMANCE NEED OF THE HOUR

ECIL has given me an excellent opportunity of studying the Performance Appraisal System in their company. Managers have conducted performance appraisal for years. Employees have attended training sessions for years. Organization members have worked long, hard hours for centuries. Processes such as planning, budgeting, sales and billings have been carried out for years in organizations. But all too often, these activities are done mostly for the sake of doing them, not for contributing directly to the preferred results of organization. Nowadays organizations are facing challenges like never before. Increasing competition from businesses must be more careful about the choice of strategies to remain competitive. Everyone and everything in the organization must do what they are supposed to do and must be done in the way it has to be done to ensure strategies are implemented effectively. It is the need of the hour that talented people should be on the board where as people who are performing low are not being entertained anymore based on current situation i.e. Recession Everywhere. Hence employees need to track their performance on an ongoing basis to remain on the board. Managers of any organization need to know the running score so that they can assess whether changes are needed for the team to win. Measuring the running score and using it better performance is the subject popularly called performance measurement.

Performance measurement can be defined as regular measurement of the results and outcomes and efficiency of employees of services. The regular measurement of results or outcome is an essential component. Regular measurement of progress towards specified outcome is a vital component of any effort at managing-for-results.

WHAT GETS MEASURED GETS MANAGED AND WHAT GETS MANAGED GETS ACCOMPLISED.

Performance management reminds us that being busy is not the same as producing results. It reminds us that training, strong commitment and lots of hard work alone does not produce results. The major contribution of performance management is its focus on achieving results, useful products and services for customers inside and outside the organization. Performance management redirects our efforts away from busyness to effectiveness.

ACKNOWLEDGEMENT
I extent my sincere gratitude to Shri Dr. M. Ghosh, Director, Nava Bharathi College of P.G. Studies, and to Mr. Md Naseruddin Ahmed, Head of the department of management studies, for their kind support and guidance for making my project great success. I very great fully wish to forward due respect and thanks to my internal faculty guide Mr. G.V. Ramaiah garu , able guide for the project, for the continuous, creative, valuable and informative support extended to me, without which the project would not have been efficiently completed. I render my whole hearted thanks to all the other respected faculties of the management department, librarian, for their assistance and co-operation given to me in regard to this work. I am extremely indebted to A.Ravindranath, Senior Personnel Manager, and other employees who gave me the privilege to carry out my project successfully in their distinguished organization. I thank my parents and all other family members for their valuable and inseparable support in completion of this project. I also take this opportunity to thank all my friends and well wishers for their support in helping me in this work.

TABLE OF CONTENTS
SI:NO I II CONTENTS List of Charts List of Figures PG:NO i ii

INTRODUCTION 1.1 1.2 OBJECTIVES OF STUDY RESEARCH METHODOLOGY

1 11 12 14

LITERATURE REVIEW 26

COMPANY PROFILE 26 3.1 3.2 ELECTRONIC CORPORATION OF INDIA LIMITED 29 COMPANY PROFILE 39

ANANLYSIS OF DATA

CONCLUSION

66

SUGGESTIONS & FINDINGS

67

BIBLIOGRAPHY

69

LIST OF CHARTS
SI:NO 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. CHARTS Chart- How do you feel working in ECIL? Chart- How long have you been working in ECIL? Chart-Recruitment method Chart- satifaction by the present system of selection Chart- Performance appraisal is an instrument for Chart- The performance of an employee should be measured against Chart- To which of the following do you give importance for? Chart- Conduction training and development programs Chart- Training and Counseling are the means to improve the performance Chart- Present appraisal system identify the strength and weakness Chart- Do you resist or adapt changes? Chart- Performance and Potential are weighed in your performance appraisal Chart-Top management commitment towards implementing PAS Chart- Clear feedback on performance Chart-Communication of Adverse remarks Chart- Performance appraisal plays a vital role in career growth Chart- Potentials identified for your future development Chart-Maintain a sound relationship with your peers, superiors and subordinates Chart-skills are properly utilized by the management 58 Chart-Management provide reward for your better performance 59 Chart-Work performed on daily basis is challenging 60 PG:NO 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57

22. 23.

Chart-personal goals play vital role than organizational goal Chart-authority to participate in decision-making 62

61

24. 25.

Chart-Performance satisfaction Chart-Number of promotions

63

LIST OF FIGURES
SI:NO 1. 2. 3. FIGURES FIGURE 2.1 MANAGERIAL FUNCTIONS FIGURE-2.2-HUMAN RESOURCE MANAGEMENT FIGURE-3.1-OBJECTIVES OF ECIL Pg.No 20 25 31

1.0 INTRODUCTION TO PERFORMANCE APPRAISAL

Appraising the performance of individuals, groups and organisations is a common practice of all societies. While in some instances these appraisal processes are structured and formally sanctioned, in other instances they are an informal and integral part of daily activities. Thus, teachers evaluate the performance of students, bankers evaluate the performance of creditors, parents evaluate the behavior of their children, and all of us, consciously or unconsciously evaluate our own actions from time to time. In social interactions, performance is conducted in a systematic and planned manner to achieve widespread popularity in recent years.

Meaning of Performance Appraisal

Performance appraisal is a method of evaluating the behaviour of employees in the work spot, normally including both the quantitative and qualitative aspects of job performance. It indicates how well an individual is fulfilling the job demands. Under performance appraisal we evaluate not only the performance of a worker but also his potential for development.

Features of Performance Appraisal

Performance appraisal is the systematic description of an employee's job-relevant strengths and weaknesses. The basic purpose is to find out how well the employee is performing the job and establish a plan of improvement. Appraisals are arranged periodically according to a definite plan. Performance appraisal is not job evaluation. Performance appraisal refers to how well someone is doing the assigned job. Job evaluation determines how much a job is worth to the organization and, therefore, what range of pay should be assigned to the job. Performance appraisal is a continuous process in every large scale organization.

METHODS OF PERFORMANCE APPRAISAL

Performance appraisal has two bases; 1) appraisal of employees according to traits, attributes and general behavior on the job, commonly known as trait approach; 2) appraisal of results, work and goals achieved by the employees, known as appraisal by results. These two approaches, however, are not mutually exclusive and can be used in combination. Either trait approach, or result approach, or combination of both of these may be adopted in different forms resulting into different appraisal which can be classified in different ways. Beatty and Schneier have categorized various methods of appraisal into four groups. Comparative methods, in which an appraisee is compared with others; absolute standards, in which the appraisees performance is compared with the standards fixed for him; goal setting, in which goals for the appraisee are set through mutual participation between appraiser and appraisee and the performance is measured against those standards; and direct indices, in which the appraise is appraised in terms of various outcomes such as, productivity, absenteeism, tardiness, etc. a more useful classification of appraisal methods may be to group these into two categories; traditional and modern, based on the evolution of various methods of appraisal over the period of time. This classification has been provided below.

METHODS OF PERFORMANCE APPRAISAL Traditional Method

This approach has also been known as the organizational or overall approach. The traditional approach has been primarily concerned with the overall organization and has been involved with past performance.

Ranking Method
In the ranking method various persons are given ranks on the basis of their traits. This is very simple method when the number of persons to be ranked is small because ranking has to be given on the basis of traits which are not easily determinable not like marks in an examination. Moreover, since

differences in ranks do not indicate absolute or equal differences of ability between individuals, the method has limited value for performance appraisal.

Paired Comparison
In this method, each person is compared with other persons taking only one at a time. Usually only one trait, overall suitability to perform the job, is considered. The rater is provided with a bunch of slips each containing a pair of names The rater puts a tick mark against the person whom he considers the better of the two, and final ranking ,is determined by the number of times that person is judged better than others.

Grading
In this method, certain categories of abilities of performance are defined well in advance and persons are put in particular category depending on their traits and characteristics such categories may be definitional like outstanding, good, average, poor, very poor, or may be in terms of letters like A, B, C, D etc., with A indicating the best and D indicating the worst. The actual performance of the employees is measured against these grades. This method is generally useful for promotion based on performance. This method, however, suffers from one basic limitation that the rater may rate most of the employees at higher grades.

Forced Distribution Method

The basic assumption in this method is that employees performance level conforms to a normal statistical distribution. For e.g., 10 per cent employees may be rated as excellent, 20 per cent as above average 40 percent as average, 20 per cent below average, and 10 per cent as poor. This method is useful to rate job performance and promo ability. The basic advantage of this method is that it overcomes the problem of adopting a central tendency of rating most of the employees to a point, particularly high or near high to appease them.

Forced Choice Method

The forced choice rating method contains a series of group of statements .and The rater checks how effectively the statement describes each individual being evaluated. There may be some variations in the methods and statements used but the most common method of forced choice contains two statements both of

Which may be positive or negative though both of them describe the characteristics of an employee, the rater is forced to tick only one which appears to be more descriptive of the employee. Out of these two statements, only one statement is considered for final analysis of rating. For example, a rater may be given the following two statements: (1) The employee is hard working. (2) The employee gives clear instructions to his subordinates Both these statements are positive but the rater is asked to rate only one which more descriptive of his subordinates behaviour. This is done to avoid subjectivity in rating. The final rating is done on the basis of all sets of statements. This method may be more objective but it involves lot of problems in constructing such sets of statements.

Check List Method

In the check list method of appraisal, the rater provides appraisal report by answering a series of questions related to appraisee. These questions are Prepared by HR department and are related to the behaviour of the appraisee concerned. Each question has two alternatives, yes or no, as given below: 1. Is he/she interested in the job? 2. Is he/she regular on the job? 3. Does he/she show uniform behavior to all? 4. Is he/she respected by his/her subordinates and colleagues? 5. Is he/she willing to help other employees? Yes/No Yes/No Yes/No Yes/No Yes/No

When the checklist is completed, it is sent to HR department for further processing. Various questions in the checklist may have either equal weight age or more weight age may be given to those questions which are more important. The HR Dept, then, calculates the total scores which show the appraisal result of an employee.

Critical Incidents Method

In this method, only critical incidents and behaviour associated with these incidents are taken for evaluation. This method involves three steps. A test of noteworthy on the-job behaviour (good or

bad) is prepared. A group of experts then assigns scale values to them depending on the degree of desirability for the job. Finally, a checklist of incidents which define good and bad employees is prepared. The rater is given this checklist for rating. The basic idea behind this rating is to appraise the people who can do well in critical situations because in normal situation, most employees work alike. This method is very useful for discovering potential of employees who can be useful in critical situation. Such a situation may be he quite important for the job. Graphic Scale Method Graphic scale, also known as linear rating scale, is the most commonly used method of performance appraisal. In this method, a printed appraisal form is used for each appraisee. The form contains various characteristics and his job performance. Various characteristics include initiative, leadership, dependability, cooperativeness, enthusiasm, creative ability, analytical ability, decisiveness emotional maturity, etc. depending on the level of the employee. Job performance includes quantity and quality of work performance, responsibility assumed, specific targets achieved, regularity of attendance, etc. The rating is done on the basis of scale which is in continuum. The central idea behind this scaling is to provide the rater with a continuum representing varying degrees of a particular quality. The rater estimates the degree to which each quality is possessed by his subordinates. The degree of quality is measured on scale which can vary from three points to several points. However, most common practice is to have five-point scales. Some organisations use even numbers in order to avoid the tendency of the rater to tick mark central points. Degrees may be numbered or defined. Thus 5, 4, 3, 2 and 1 in that order can be used to denote points for various degrees of excellent-poor, high-low, or good-bad and so on. These numbers can be expressed in terms of descriptions like excellent, very good, average, poor and very poor; or very high, high, average, low and very low. Instead of numbers showing various degrees, sometimes definitions and descriptions of qualities can be used.

Essay Method
Instead of using structured forms for performance appraisal, some companies use free essay method, or sometimes, combine this with other methods. In this method, the rater assesses the employees on certain parameters in his own words. Such parameters may be as follows:

1. Work performance in terms of quality, quantity and costs; 2. Knowledge about the job; 3. Knowledge about organizational policies, procedures and rules 4. Employees characteristics and behaviour; 5. Employees strengths and weaknesses;

The essay method is useful in providing useful information about an employee on the basis of which he can be appraised. However, there may be problems in free essay method. Each rater may use own style and perception in describing a person which produces difficulty in analysis.

Field Review Method

In field review method, an employee is not appraised by his direct superior but by another person, usually, from HR department. The basic idea is that such a person may take more objective view in appraisal as he is not under pressure as the superior of the employee may be. The rater, in this case, appraises the employee based on his records of output and other quantitative information such absenteeism, late coming, etc. The rater also conducts interviews of the employee and his superior to ascertain qualitative aspects of job performance. This method is more suitable for promotion purpose. Further, this method provides the in formation to make comparison of employees from different locations and units. The chances of bias are reduced to a great extent as HR person is supposed to be trained in appraisal mechanism. Henderson observes that even when a superior or others concerned supply biased information; the rater may be able to pinpoint areas requiring training and development assistance. However, field review method suffers from two limitations: 1) Outsider is usually not familiar with the conditions in an employees work environment which may affect his ability and work motivation to perform. 2) The outsider does not have the opportunity to observe the employees behaviour or performance over a period of time and in a variety of situations, but only in an artificially structured interview situation which extends over a very short period of time.

Modern Appraisal
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.

Appraisal by Results or Objectives

The basic idea behind this appraisal is that the organization is concerned with achievement of objectives through the contributions of individual managers rather than on basis of their traits. Various steps involved in appraisal by results are as follows: 1. Appraisal by result is a joint process between superior and his subordinates. 2. The subordinate prepares his plan for specific period usually for one year in the light of the overall plan provided by his superior. The final plan prepared through mutual consultation. 3. Through mutual consultation, both of them decide the evaluation criteria. That is what factors will be taken up for evaluation of subordinates performance. The supporting role of superior is also finalized so that the subordinate is clear about the various supports he will get. 4. At the end of specified period, normally one year, the superior makes a performance evaluation of subordinate on the basis of mutually agreed criteria. 5. Superior discusses the results of his evaluation with the subordinate; corrective actions, if necessary, are suggested; and mutually agreed targets for the next period are set.

Behaviourally Anchored Rating Scales (BARS)

BARS approach gets away from measuring subjective personal traits and instead measures observable, critical behaviors that .related to specific job dimensions. Various steps involved in developing BARS are as follows:

1. Identification of Performance Measures

The first step in developing BARS is the identification of performance measures, that is, the outcomes of an effective job performance. These measures may be identified by knowledgeable, relevant people who may be usually superior, jobholders and HR personnel or combination of all of them. These people are asked to identify the important dimensions of the job under question. These dimensions may be the same as used in traditional methods and as disclosed by comprehensive job analysis.

2. Identification of Critical Behaviors.

Critical behaviors are those which are essential for the performance of the job effectively. These behaviors are generated from different dimensions of the job, and are related to various critical incidents of the job. These may be stated in a few short sentences or phrases using the terminology of the job in question.

3. Retranslation of Critical Behaviors

Various critical behaviors as identified in step 2 are retranslated, usually by a different group of personnel, in the retranslation process, various critical incidents are classified into clusters with each cluster having similar critical incidents. Those behaviors which are approved by majority of personnels are kept for further development and others discarded the basic idea is to keep the number of behaviors to a manageable limit and which are more descriptive of the job. The retranslation process assures the reliability of the critical behaviors consistent with the job dimensions

4. Scaling of Critical Behaviors

Those critical behaviors which are included for the performance appraisal during the process of retranslation are given scales usually in numbers with their description. The scales may range from 1 to 7 or from 1 to 9, with each point of a scale demonstrating the perceived level of performance. The scale value is determined on the basis of estimates provided by various persons in the retranslation process.

5. Development of the BARS Instrument.

The result of arranging various scales for different dimensions of the job (known as behaviour anchors) produces a vertical scale for each dimension. This scale is used for performance appraisal.

Assessment Centre
An assessment centre is a central location where managers come together and participate in a number of simulated exercises, on the basis of which they are evaluated by a panel of raters. The evaluation process goes through 23 days. The Task Force on Development of Assessment Centre Standards has recommended that a technique can be considered as assessment centre only if it the following requirements: 1) Multiple assessment techniques must be used and at least one of these techniques must be a simulation. 2) Multiple trained assessors must be used. 3) Judgments must be based on pooled information from all assessors. 4) Evaluation must be made at a time separate from the observation of behaviour. 5) Simulation exercises used in this method should first be tested for their reliability, validity and objectivity. 6) The dimensions, attributes, characteristics, or qualities evaluated by the programme must be determined by an analysis of relevant job behavior.

360 Performance Appraisal

The appraiser may be any person who has thorough knowledge about the job content, contents to be appraised, standards of contents, and who observes the employee while performing a job. The appraiser should be capable of determining what is more important and what is relatively less important. He should prepare reports and make judgments without bias. Typical appraisers are: Supervisor, peers, subordinates, employees themselves, users of service and consultants. Performance appraisal by all these parties is called "360 Performance appraisal."

Supervisors

Supervisors include superiors of the employee, other superiors having knowledge about the work of the employee and department head or manager. General practice is that immediate superiors appraise the performance which in turn is reviewed by the departmental head/manager. This is because supervisors are responsible for managing their subordinates and they have the opportunity to observe, direct and control the subordinate continuously. Moreover, they are accountable for the successful performance of their subordinates. Sometimes other supervisors, who have close contact with employee work also appraise with a view to provide additional information. On the negative side, immediate supervisors, may emphasize certain aspects of employee performance to the neglect of others. Also, managers, have been known to manipulate evaluations to justify their decisions on pay increases and promotions. However, the immediate supervisor will continue to evaluate employee performance till a better alternative is available. Organizations, no doubt, will seek alternatives because of the weaknesses mentioned above and a desire to broaden the perspective of the appraisal.

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. However, 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. 9 Whatever research was done on this topic was mostly done on military personnel at the management or premanagement level (officers or officer candidates) rather than on employees In business organizations. More often than not in business organizations if employees were to be evaluated by their peers, the whole exercise may degenerate into a popularity contest, paving the way for the improvement of work relationship.

Subordinates
The concept of having superiors rated by subordinates is being used in most organisations today, especially in developed countries. Such a novel method can be useful in other organizational settings too provided the relationships between superiors and subordinates are cordial. Subordinates' ratings in such cases can be quite useful in identifying competent superiors. The rating of leaders by combat soldiers is an example. However, the fear of reprisal often compels a subordinate to be dishonest in his ratings. Though useful in universities and research institutions, this approach may not gain acceptance in traditional organizations where subordinates practically do not enjoy much discretion.

Self Appraisal

If individuals understand the objectives they are expected to achieve and the standards by which they are to be evaluated, they are to a great extent in the best position to appraise their own performance. Also, since employee development means self development, employees who appraise their own performance may become highly motivated.

LIMITATIONS
1) Due to complex human behaviors there is tendency that respondent fail to provide accurate information. 2) Scope of the study was limited. 3) Sample size taken was small. 4) No performance appraisal system can be effective if the appraised do not know the criteria under which they have been appraised and judged. 5) A constructive congenial relationship should exist between the supervisor and his subordinate. During performance appraisal program the superior may tend to show his superiority which may cause damage in the organizational climate.

1.1 OBJECTIVE OF STUDY

The basic aims and objective of Performance Management And Appraisal System are to help the realization of organization goals. The specific objectives of Performance Management System are as follows. 1. To study the various performance appraisal methods performed in ECIL. 2. To ensure effective training program for employees in case of dissatisfaction. 3. To study about performance analysis at ECIL, as performance analysis is the heart of performance appraisal. 4. To obtain feedback from the employees.

1.2 RESEARCH METHODODLOGY

Methodology of the study: Research methodology is a way to systematically solve the research problem. It may be under stood as a science of studying how research is done scientifically in it we study the various steps that are generally adopted by a researcher in studying his research problem along with the logic behind them. Data can be broadly classified as: 1. Primary data 2. Secondary data Primary data: Primary data are those that are original in character and are collected afresh. As the primary data is information collected for the first time, there are several methods in which the data is completed the methods are: Questionnaire Schedule Interviews Observation Of these 4 methods personal interviews and questionnaire are used for collecting the data.

Sources of secondary data:

 Annual report Textual information available in the library

The secondary data means data that is already available. Secondary data may be either published data (or) unpublished data.

Sampling method of the study:

The sample plan is the procedure or way in which the sampling has been done. As no project or research can be done taking into consideration the whole of the population or universe, the concept of sampling is used. As per the concept of sampling only some sample is taken from the universe in order to find out the result.

CONCLUSION The result of this study reveals about the state of affairs of the organization with regard to the employees.It mainly emphasis the Performance Management and Appraisal in a well structured way. The feedback should be such that the individuals are to be known about there faults, where they are logging and as a result training ,counseling and other development programs should be done in those logging areas.

2.0LITERATURE REVIEW
2.1 INTRODUCTION
Organizations are made up of people and functions through people. Without people

organizations cannot exist. The resources of men, money, material and machinery are collected, coordinated and utilized through people. These resources by themselves cannot fulfill the objectives of an organization. They need to be united into a team. It is through the combined efforts of people that material and monetary resources are effectively utilized for the attainment of common objectives. Without united human effects no organization can achieve its goal. According to L.F.Urwick, Business houses are made or broken in a long run not by markets or capital, patents or equipment but by men. From the national viewpoint, human resources may be defined as The knowledge, skills, creative abilities, talents and aptitudes obtained in the population. From the viewpoint of an organization, human resources represent the people at work. According to Jucies, human resources or human factors refers to A whole consisting of inter related, inter dependent and interactive physiological, psychological, sociological and ethical components. Thus, human resources represents the quantitative and qualitative measurement of the work force required in an organization.

The following features characterize human resources:

Human resources of an organization are the products of their biological inheritance and interactions into the environment.

Human resources are heterogeneous. Human resources are dynamic and behave differently. Human resources are the most important element in the origination. Human resources have the greatest potential to develop and grow, provided the right climate is provided to them.

The term Human resources are wider the term personnel. Human resources include all the dynamic components of all the people at all level in the organization where as personnel mean the employees working in the organization.

2.2 Concept of Human Resources Management

Human Resource Management (HRM) may be defined as a set of policies, practices and programs designed to maximize both personnel and organizational goals. According to Flippo, personnel management, or human resource management is The planning, organizing, directing and controlling the procurement, development, compensation, integration, maintenance and reproduction of human resources to the end that individual, organizational and societal objectives are accomplished. According to National Institute of Personnel Management of India, Personnel Management is that part of management concerned with people at work and with their relationships within the organization. It seeks to bring together men and women who make up an enterprise, enabling each to make his best contribution to its success both as an individual and as a member of a working group. In the words of Jucies Personnel Management may be defined as field of

management which has to do with planning, organizing and controlling the functions of procuring, developing, maintaining and utilizing a labor force, such that the: Objectives for which the company is established are attained economically and effectively.

Objectives of all levels of personnel are served to the highest position. Objectives of society are dually considered and served.

2.3 Objectives of Human Resource Management

Every organization has some objectives and every part of it should contribute directly or indirectly to the attainment of desired objective. Objectives determine the character of an

organization and serve as the basis of voluntary co-operation and co-ordination among employees. Objectives are provided bench marks or standards of evaluating performance. Objectives of Human Resource Management are derived from basis objectives of an organization. In order to achieve organizational objectives, integration of employers interest and employees interest is necessary. In this light the objective of Human Resource Management may be summarized as follows: To help the organization attain its goal by providing well-trained and well-motivated employees. To employ the skills and knowledge of employees efficiently and effectively i.e, to utilize human resources effectively. To enhance job satisfaction and self-actualization of employees for encouraging and assisting every employee to realize his/her full potential. To establish and maintain productive, self-respecting and internally satisfying working relationships among all the members of the organization. To bring about maximum individual developments of the members of the organization by providing opportunities for training and development.

To secure the integration of all the individuals and the groups with the organization by reconciling individuals/groups with those of an organization.

To develop and maintain a quality of work life (QWL) which makes employment in the organization a desirable personal and social situations.

To maintain high morale and good human relations within the organization To help maintain ethical policies and behaviour inside and outside the organization. To manage change to the mutual advantage of individuals, groups, the organization and the society.

To recognize and satisfy individual needs and group goals by offering appropriate monetary and non-monetary incentives.

In short, Human Resource Management seeks to attain economically and effectively the organizational goals, serve to the highest possible degree the individual goals and preserve and promote the general welfare of the community. The requirements for attaining the objectives are as follows:

Recruiting the right personnel possessing necessary skills and attitudes. Developing clearly defined objectives and policies through common understanding and mutual consultation.

Communicating and explaining the goals to be achieved and the contributions expected of every member of the organization.

Dividing the task properly with the clear-cut authority, responsibility and relationship of one position with another.

Maintaining sound industrial and human relations so as to secure the willing co-operation of all.

Providing suitable monetary and non-monetary rewards for the contributions of employees.

2.4 Importance of Human Resource Management

The significance of Human Resource Management can be discussed at four levels of Corporate, Professional, Social and National. Significance for an Enterprise: Human Resource Management can help an enterprise in achieving its goals more efficiently and effectively in the following ways:

Attracting and retaining the talent through effective human resource planning, recruitment, placement, orientation, compensation and promotion policies.

Developing the necessary skills and right attitudes among the employees through training, development, performance appraisal etc.

Securing willing co-operation of employees through motivation, participation, grievance handling etc.

Utilizing effectively the available Human Resources. Ensuring that the enterprise will have in future a team of competent and dedicated employees.

Professional Significance: Effective management of Human Resources helps to improve the quality of work life. It permits teamwork among employees by providing a healthy, working environment. It contributes to professional growth in the following ways: Providing the maximum opportunities for personal development for each employee

 Maintaining healthy relationships between individual and different work groups Allocating work properly. Social Significance: Sound Human Resource Management has a great significance

for the society. It helps to enhance the dignity of labour in the following ways: Providing suitable environment that provides social and psychological satisfaction to people. Maintaining a balance between the jobs available and the job seekers in terms of numbers, qualifications, needs and aptitudes. Eliminating waste of Human Resources through conversation of physician and mental health. National Significance: Human Resources and their management play a vital role in the development of nation. The effective exploitation and utilization of a nations natural, physical and financial resources require an efficient and committed man power. There are wide differences in development between countries with similar resources due to differences in the quality of their people. Effective management of human resources helps to speed up the process of economic growth that in turn leads to higher standards of living and fuller employment. Human Resource Management has become very

significant in recent decades due to the following factors: Increase in the size and complexity of organization e.g. an MNC employing millions of persons. Rapid technology developments like automation, computerization etc. Rise of professional and knowledge workers. Increasing proportion of women in the workforce. Growth of powerful nation wide trade unions.Widening scope of legislation designed to protect the interests of the working class.

 Revolution in information that might affect the workforce. Rapidly changing the jobs and skills requiring long term man power. Planning. Growing expectations of society from employees.

2.5 Functions of human resource management

Every organization has certain function to perform. These functions of human resource management can be broadly classified into two categories: A. Managerial function: Managing people is the essence of being a manager. Like other managers, a human resource manager performs the functions of planning, organizing,directing and controlling.

Figure 2.1. Managerial Functions

Planning: A plan is predetermined course of action. Planning is the process of deciding the goals and formulation policies and programmes achieve the goals. Planning involves forecasting and research. Planning helps to face successfully the changes that are likely to take place in future. Planning today avoids crisis tomorrow. In the area of Human Resource Management, planning involves deciding personnel policies and programs, preparing the human resource budget, etc.

Organizing: In order to implement the plans, a sound organization structure is required. Organizing is the process of allocating tasks among them and integrating their activities towards the common objectives. The right organization structure is the foundation of effective management because without it the best performance in all other areas will be ineffective. Organization is the frame through which management directs controls and coordinates the efforts of people.

Directing:

It is the process of motivating, activating, leading and supervising people.

Directing includes all those activities by which a manager influences the action of subordinates. It involves getting others to act after all preparations have been made. Directing is the heart of management process because it is concerned with initiating organizational goals. A manager can tap the maximum potential of employees through proper direction. Directing also helps in building sound individual and human relations in the organization.

Controlling: It implies checking, verifying and regulating to ensure that everything occurs in conformity with the plans adopted and the instructions issued. Such monitoring helps to minimize

the gap between desired results and actual performance. Controlling the management of human resource involves auditing, training programs, analyzing labor turn over records, directing morale surveys, conducting separation interviews and such other means.

B. Operative Functions The operative or service functions of human resource management are the tasks, which are entrusted to the personnel department. These functions are concerned with specific activities of procuring, developing, compensating and maintaining an efficient workforce.

Procurement Function: It is concerned with securing and employing the right kind and proper number of people required accomplishing the organizational objectives. It consists of

activities like Job Analysis, Human Resource Planning, Recruitment, Selection, Placement and Induction or Orientation.

Development Function: Human Resource Development is the process of improving the knowledge, skills, aptitudes and value of employees so that they can perform the present and future jobs more effectively. This function comprises activities like Performance and Potential Appraisal, Training, Executive Development and Career Planning and Development.

Compensation Function:

It refers to providing equitable and fair remuneration to It consists of

employees for their contribution to the attainment of organizational objectives. activities like Job Evaluation, Wage and Salary Administration and Bonus.

Integration Function: It is the process of reconciling the goals of the organization with those of its members. Integration involves motivating employees through financial and non-financial

incentives, providing job satisfaction, handling employee grievances through formal grievance procedures, collective bargaining, workers participation in management, conflict resolution, developing sound human relations, employee counseling, improving quality of work life, etc.

Maintenance Function: It is concerned with protecting and promoting the physical and mental health of employees. For this purpose several types of fringe benefits such as housing, medical aid, educational facilities conveyance facilities, etc. are provided to employees. Social security measures like provident funds, pension, gratuity, maternity benefits injury/disablement allowance, group insurance, etc. are also arranged. Health, safety and welfare measures are designed to preserve the human resources of the organization. important element of maintenance functions. Personnel records and research are also

2.6 Scope of Human Resource Management

According to Dale Yoder the scope of Human Resource Management is very wide. It consists of the following functions: Setting general and specific management policy for organizational relationships, and establishing and maintaining a suitable organization for leadership and cooperation. Collective bargaining, contract negotiation, contract administration and grievance handling. Staffing the organization, finding, getting and holding prescribed number of workers. Aiding in the self-development of employees at all levels providing. Opportunities for personal development and growth as well as for acquiring requisite skills and experience. Developing and maintaining motivation for workers by providing incentives. Reviewing and auditing manpower management in the organization.

Industrial relations research-carrying out studies designed to explain employee behavior and there by effecting improvement in manpower management.

The Indian Institute of Personnel Management has described the scope of human resource management into the following aspects: The Labour or Personnel Aspect: It is concerned with manpower planning, recruitment, selection, placement, induction, transfer, promotion, demotion, termination, training and development, layoff and retrenchment, wage and salary, administration, incentives, productivity, e.t.c.

The Welfare Aspect: This aspect is concerned with working conditions and amenities such as canteens, crches, restrooms, lunchrooms, washing facilities, housing, transport, education, medical help, health and safety, recreation and cultural facilities etc.

The Industrial Relations Aspect: This is concerned with the companys relations with the employees. It includes union-management relations, joint consultation, negotiating,

collective bargaining, grievance handling, disciplinary actions, settlement of industrial disputes etc.

All the above aspects are concerned with human element in industry as distinct from the mechanical element.

HUMAN RESOURCE MANAGEMENT SYSTEM

FIGURE-2.2-

HUMAN RESOURCE MANAGEMENT

3.0 COMPANY PROFILE

3.1 Profile of the company

ELECTRONICS CORPORATIN OF INDIA LIMITED (ECIL) is one of the premier institutions actively engaged in the field of electronics in the country. ECIL sprang up from the know-how developed at BHABHA ATOMIC RESEARCH CENTRE (BARC) WITH AN OBJECTIVE TO CREATE A SELF RELIANT nuclear Technological base. ECIL is government of India owned company which is incorporated in 1967 with the main objective to promote and develop industrial electronics. Since, then the corporation has made the significant strides in many

technological disciplines.

Today sophisticated instruments, components and systems developed at ECIL find huge applications in strategic areas of national endeavor like communications, defense and industries.

The company is operating on strategic business concept.

The annual turnover of the

company for the year 2008-2009 has been of the order of Rs.1500 Crores. The production/business activities of the company are carried out by the following groups/divisions ably supported by service groups.

BUSINESS GROUPS/DIVISIONS: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Antenna Products Division (APD) Business System Division (BSD) Components Division (CD) Control and Automation Division (CAD) Computer Education Division (CED) Communications Division (CD) Customer Service Division (CSD) Electronic Manufacturing Division (EMSD) Industrial and Consumer Electronics Division (ICD) Instruments and System Division (ISD) Information Technology and Telecoms Group (IT & TG) Software and Consultancy Division (SED) Strategic Electronics Division (SED) Special Product Division (SPD) Servo System Division (SSD) Supervisory Control and Automatic Data Acquisition Division (SCASA)

SERVICE GROUPS/DIVISIONS: 1 2 3 4 5 Engineering Services Division (ESD) Finance and Accounts Group (FAG) General Administrative Division (GAD) Personnel Group (PG) Standards and Quality Assurance Group (SQAG)

ORGANIZATION CHART OF ECIL

B O A R D a n & O F m G G G D I R E C T O a n a g in g M M M C A D C G S P D C R E & C G R S

C h a irm

d ire c t o r

E D E D S E

E x e c u t iv e d ir e c t o r ( T e c h n i c a l) E x e c u t iv e D ir e c t o r ( R & D ) R & D S Q A G

E x e c u t iv e D ir e c t o r ( P e r s o n n e l) E x e c u t iv e D ir e c t o r ( P e r s o n n e l) E S G G M C E D

C o r p o r a t e P la n n in g & M o n it o r Z M Z M Z M Z M ( E ) ( S ) ( W ( N ) )

C S

3.2 Profile of ECIL

In these days of multi national mergers and acquisition, when prestige lies in the size and spread of an organization or it links the highest of high-tech agencies across the world. ECIL tends to overlook the fact that our country also has created nurtured knowledge communities and have influenced the quality of life with the products of their effort, and has done from within, with homegrown talent and indigenous systems that are built on the vision of giants like Dr.Homi Baba, Dr. Vikram Sara Bai and Dr. A.S.Rao.

ECIL, Hyderabad is one such institution. ECIL was started on 11 th April 1967 in the realization that only self-sufficiency in key areas of science and technology could lead India to true independence. Dr. A.Sambasiva Rao well known as Dr.

A.S.Rao (20-09-1914 to 30-10-2003) was the founder of ECIL. He is known to be the father of INDIAN ELECTRONICS. ECIL comes under ATOMIC ENERGY. ECIL continued several R&D programs initiated at BARC, to design and develop electronic components, instruments and systems to meet the requirements of the countrys nuclear energy programs.

The mother division of ECIL is NUCLEAR INSTRUMENTS DIVISION (NID). Over the years the company blossomed into multi product multi disciplinary organization based on its motto- SEKF-RELIANCE. Thus, the areas of Information Technology, Strategic Electronics, Communications, Control and Automation, Instrumentation and Components provide key technology inputs and system solutions.

ECIL has set up extensive infrastructure for design, development, manufacturing, and quality assurance in addition to meeting requirements of atomic energy and defense, sectors of development such as banking and insurance, civil aviation, education, energy, railways, steel, telecommunications and transportation. ECIL has supplied 50% (i.e about 6 lakhs) of the voting machines to the Election Commission of India. These machines were manufactured as Electronic

Manufacturing Services Division (EMSD). The mission of ECIL is to consolidate and strengthen its status as a valued national asset in the field of strategic electronics of meeting the needs of atomic energy and defense sectors in chosen technology segments.

The different positions occupied in ECIL are listed below:

Mr. G.P.SRIVASTHAVA is C&MD of ECIL. Mr. R.R.PANDALAI is Director (PERSONNEL) Mr. MURUGESAN is Director (FINANCE) Mr. G.N.V.SATYANARAYANA is Director (TECHNICAL) Mr. C.S.RATNAKAR RAO is Head of ISD.

Figure 3-1. Organizational Structure of ECIL

FIGURE-3.1-OBJECTIVES OF ECIL

There are certain objectives for ECIL. They are: To compact technology denials create a strong indigenous base for indignation and import substitution. To support strategic requirements of the companys atomic energy and defense programs. To demonstrate techno-economic viability of indigenous technology.

ECIL has also made certain societal contributions. They are: Spreading of IT education. Free cost of technology has been transferred to several states. To create employment.

2.3 Personnel Department

With regard to personnel department, ECIL is concerned; it can be categorized under the following functions/activities: A. Establishment Matters. B. Welfare Matters C. Administrative Matters. D. House-Keeping / Engineering Services. E. General Administrative Matters. F. Training and G. Industrial Relations / Employees Relations.

A. Establishment Matters The establishment matters look after the following functions with regard to establishment: Recruitment Functions In conformity with the companys personnel policy, the objectives of the recruitment function will be: To ensure that the qualified personnel with potential for development are recruited to meet the specific needs of the company. To focus attention on proper placement of the recruits. To adopt and fulfill the socio-economic commitments by complying with the statutory obligations. Departmental Promotions The factors reckoned for determining the suitability for promotion are Performance of the employees in the written test / trade / on-line test (wherever applicable). Performance in interview. Ratings of the employees performance appraisal related to the norm period. Estate Matters Estate matters are mainly related with: The residence quarters of the company. The lands belonging to the company The legal matters which arise due to the lands belonging to

the company.

Employee Service Conditions Service conditions of the employees of ECIL are governed by the certified standing order in the case of offers. Medical Employees and their families shall be eligible for the following medical benefits: Consultation with the companys Medical Officer(s). Hospitalization treatment in government / municipal hospitals including ayurvedic hospitals and at over recognized private hospitals / nursing homes. Hospitalization of medical bills can be categorized into two. They are: Hospitalization and Non-Hospitalization.

Under Non-Hospitalization, company will be paying Rs.850/- per quarter to each of its employees. B. Welfare Matters Welfare matters covers under Factories Act, 1948. The welfare matters are as follows: Transport Subsidized transport facility is provided to all the employees of the corporation from all parts of the twin cities to the place of work with regard to employees working at branches / zones, transport subsidy @ Rs.75/- per month is being provided. Canteen Those employees working in branch offices, where subsidized canteen is not available are given lunch allowances as per rules.

Baby Crche In terms of Sec.48 of A.P.Factories Act, 1948 a crche is organized in the company, at free of cost, for the benefit of female employees. Free milk and biscuits will be provided to the children. Children of more than six completed years of age are not allowed to the crche. Safety A safety committee is constituted for providing employee safety in the organization and towards that end recommends policies and procedures for ensuring healthy environment and measures for accident prevention. Employee Welfare The company provides the following welfare programs to its employees, like: Death-cum Service Mutual Benefit Fund. Consumer co operative society Employee co operative society. Janatha insurance policy. Schools. Special allowance for physically handicapped etc.

C. Administrative These matters involve issuing/controlling and implementation of circulars/notices and notifications. Further implementation of day-to-day activities of the organization etc. D.Housekeeping/Engineering services Under the services we have electrical maintenance of gardens and control of hygienic activities, maintenance of building and structural maintenance etc.

E.General Administrative matters General administrative services generally involves security services , companies secretariats ,passports and visas reception ,telephone services ,fire services etc. F.Training Human resource development is one of the corporate priorities of ecil and training is viewed as the most impoetent tool for ensuring the development of the employees resulting careers for the employees as well as organisastional development. Towards achieving this objective ,three tier need based training programs are organized. They are: Executive Development programs Supervisory Development. Training programs for workmen. External Training programs. Apprenticeship Training

G.industrial/Employee relations The industrial/employee relations matter can be categorized into the following. They are: Employee related Affairs. Union affairs. Officers Associations Affairs. Grievance Handling. Employee representations. The matters related to elected/nominated committees, according to the provisions of students(Acts)

Working participation in management.

3.4 Products Of Instruments And Systems Division (ISD)

The products of the Instruments and Systems Division (ISD) are mainly: Security Systems. Nuclear and Industrial Instruments. X-ray Package Inspection. X-ray Generators. Elisa Reader. Spectrophotometers. Thickness Gauges.

The turnover of ISD is RS.150 Crores.

3.5 Committees
In order to facilitate decision-making on various matters at corporate level, the following committees are constituted: Corporate Management Committee: The corporate management committee consists of all groups heads as members. The committee evolves all corporate policies and provides necessary guidelines to fulfill and achieve corporate objectives. CND is the Chairperson of the committee. Central Adcisory Committee: Central Advisory Committee works under the chairmanship of director (P). SM/DGM acts as the convener. To ensure

uniformity in awarding punishments on various disciplinary matters, the

disciplinary authorities are requested to consult SM (IR) before deciding the punishment to be awarded. In the opinion of SM (IR) needs further consideration, this would refer to the Central Advisory Committee. Corporate Advisory Committee: The Corporate Advisory Committee will

consist of five representatives from each group. The Director (P) will be the chairman of the committee. A group of Advisory Committee will function as forum for participation on various matters connected with the companys performance and employees welfare and provide feedback support to corporate advisory committee will frame their rules and procedures for conducting their business. Industrial Relations Committee: The Chairman of Industrial Relations

Committee is Director (P). The Industrial Relations Committee will provide necessary forum and feedback in order to help proper analysis and arriving at correct decisions in the field of industrial relations. The committee will

deliberate on the subjects like Manpower, Recruitment, Promotion, and Career Development, Wage Structure, Incentives Discipline and Training. All

representations and grant of EOL (Extra-Ordinary Leave) for second time are considered based on the recommendations.

4.0 ANALYSIS AND INTERPRETATION

sS 1)How do you feel working in ecil? a)proud b)partially satisfied c)satisfied d)not satisfied

HOW DO YOU FEEL WORKING IN ECIL?

NOT SATISFIED 0%

SATISFIED 24%

PROUD PARTIALLY SATISFIED SATISFIED

PARTIALLY SATISFIED 4% PROUD 72%

NOT SATISFIED

INTERPRETATION:

The above Pie chart explains how the employees feel working in their organization. It is evident that the respondents feel proud working in ECIL. The respondents who said that they are proud are 72% and the respondents who feel satisfied are 24% and those who are partially satisfied are just 4% and the respondent who are not satisfied are 0%.

2)How long have you been working in ECIL? a)5-10 years b)10-15 years c)15-20 years d)20 and above

HOW LONG HAVE YOU BEEN WORKING IN ECIL?

5-10 YEARS 4%

10-15 YEARS 8% 15-20 YEARS 4%

5-10 YEARS 10-15 YEARS 15-20 YEARS 20 AND ABOVE

20 AND ABOVE 84%

INTERPRETATION: The above Pie chart reveals from how long the sample employees have been working

in the organization. It is evident that 84% are working in ECIL from last 20 years and above and 4% are working since last 15-20 years and 5-10 years. 8% are between 10-15 years.

3)How was recruitment done in the organization? a)campus selection b)recruitment board c)employee exchange d)direct walk in

HOW WAS RECRUITMENT DONE IN THE ORGANIZATION?

DIRECT WALK IN 8% CAMPUS SELECTION 16%

CAMPUS SELECTION
RECRUITMENT BOARD 28%

RECRUITMENT BOARD EMPLOYEE EXCHANGE DIRECT WALK IN

EMPLOYEE EXCHANGE 48%

INTERPRETATION: The above Pie chart reveals how recruitment was done in their organization.

It is evident that 48% were recruited through employee exchange, 28% through recruitment board, 16% by campus selection and 8% were direct walk ins.

4)Are you satisfied by the present system of selection? a)yes b)no

ARE YOU SATISFIED BY THE PRESENT SYSTEM OF SELECTION?

NO 0%

YES NO

YES 100%

INTERPRETATION: The above Pie chart reveals satisfaction levels of employees on their present system selection in their Organization It is evident that 100% of employees are satisfied by their present system of selection

and there is no one who is not satisfied. This shows how eminent is the process of selection in ECIL

5)Performance appraisal is an instrument for, a)career growth b)training c)training and development d)disciplinary action

PERFORMANCE APPRAISAL IS AN INSTRUMENT FOR

TRAINING AND DEVELOPMENT 16% DISCIPLINARY ACTION 0%

CAREER GROWTH
TRAINING 0%

TRAINING TRAINING AND DEVELOPMENT DISCIPLINARY ACTION

CAREER GROWTH 84%

INTERPRETATION: The above Pie chart reveals the view of employees about performance appraisal,how do they use it for

It is evident that 84% view performance appraisal as an instrument for career growth and 16% for training and development. none of them view it is an instrument for just training and disciplinary action as it is 0%.

6)The performance of an employee should be measured against, a)job knowledge d)all of the above b)quantity and quality of the output c)leadership abilities

THE PERFORMANCE OF AN EMPLOYEE SHOULD BE MEASURED AGAINST

QUANTITY AND QUALITY OF THE OUTPUT 12%

JOB KNOWLEDGE 0%

JOB KNOWLEDGE
LEADERSHIP ABILITIES 0%

QUANTITY AND QUALITY OF THE OUTPUT LEADERSHIP ABILITIES ALL THE ABOVE

ALL THE ABOVE 88%

INTERPRETATION: The above Pie chart reveals the view of employees as to what performance of an employee should be measured against, It is evident that 88% feel performance should be measured against all the criteria such as

job knowledge, quantity and quality of the output, and leadership abilities. 12% feel that quantity and quality of output produced by them serves as best criteria. Where as job knowledge and leadership abilities do not play any role if measured individually as its 0%

7)To which of the following do you give importance for? a)quality of the output d)availability in the workspot b)quantity of the output c)time schedule

TO WHICH OF THE FOLLOWING DO YOU GIVE IMPORTANCE FOR?

TIME SCHEDULE 12% AVAILABILITY IN THE WORKSPOT 4% QUALITY OF OUTPUT QUANTITY OF OUTPUT 0% QUANTITY OF OUTPUT TIME SCHEDULE AVAILABILITY IN THE WORKSPOT QUALITY OF OUTPUT 84%

INTERPRETATION: The above Pie chart reveals the view of employees to which of the following they

give importance for From the above chart we can conclude 84% give importance for the quality of output 12% to time schedule, 4% to availability of the employee at work spot where as none of them feel that quantity of the output matters.

8)Does management conduct training and development programs to improve your skills? a)yes b)no

DOES MANAGEMENT CONDUCT TRAINING AND DEVELOPMENT PROGRAMS TO IMPROVE YOUR SKILLS?

NO 24%

YES NO

YES 76%

INTERPRETATION: The above Pie chart shows whether training and development programs are conducted to improve their skill?

From the above chart we can conclude 76% say yes that they conduct and are satisfied by the training programs conducted where as 24% feel that training programs conducted are not enough and they are not satisfied.

9)Do you accept training and counseling are the means to improve the performance of an individual? a)yes b)no c)at times only

DO YOU ACCEPT TRAINING AND COUNSELING ARE THE MEANS TO IMPROVE THE PERFORMANCE OF AN INDIVIDUAL?

AT TIMES ONLY 24%

NO 0%

YES NO AT TIMES ONLY

YES 76%

INTERPRETATION: The above Pie chart shows acceptance levels of training and counseling as a means to Improve the performance of an individual

From the above chart we can conclude 76% say yes that they accept that training and Counseling are the means to improve ones performance and 24% say that training and Counseling helps at times only and 0% feel that training and counseling does not simprove the performance of an individual.

10)The present appraisal system helps management to identify the strength and weakness of an individual? a)strongly agree b)agree c)disagree d)strongly disagree

THE PRESENT APPRAISAL SYSTEM HELPS MANAGEMENT TO IDENTIFY THE STRENGTH AND WEAKNESS OF AN INDIVIDUAL
STRONGLY DISAGREE 0% DISAGREE 8% STRONGLY AGREE 8%
Z

STRONGLY AGREE AGREE DISAGREE STRONGLY DISAGREE

AGREE 84%

INTERPRETATION: The above Pie chart answers the question whether the present appraisal system helps

to identify the strength and weakness of an individual or not. From the above chart we can conclude 84% agree with the statement, 8% strongly agree and 8% disagree where as there is no one who says that they do not agree with the above statement

11)Do you resist or adapt changes? a)yes b)no c)partially

DO YOU RESIST OR ADAPT CHANGES?

PARTIALLY 16% YES 36%

YES NO PARTIALLY

NO 48%

INTERPRETATION: The above Pie chart answers the question whether the employees resist or adapt any changes made in policies, or environment, management, working conditions etc..

From the above chart it is evident that 48% do not resist changes made, 36% resist changes made and 16% adapt to changes partially. s

12)Do you think performance and potential are weighed in your performance appraisal systems? a)yes b)no

DO YOU THINK PERFORMANCE AND POTENTIAL ARE WEIGHED IN YOR PERFORMANCE APPRAISAL SYSTEMS?

NO 8%

YES NO

YES 92%

INTEREPRETATION: The above Pie chart answers the question whether performance and potential are

weighed in their performance appraisal or not? From the above chart it is evident that 92% said yes and 8% said no.the graph concludes that performance and potential of an individual are weighed during their performance appraisal.

13)What do you think about the top management commitment towards implementing the Performance appraisal systems in your organization? a)effective b)partial

WHAT DO YOU THINK ABOUT THE TOP MANAGEMENT COMMITMENT TOWARDS IMPLEMENTING THE PERFORMANCE APPRAISAL SYSTEMS IN YOUR ORGANIZATION?

PARTIAL 28%

EFFECTIVE PARTIAL

EFFECTIVE 72%

INTERPRETATION: The above Pie chart shows what the sample think about the top management commitment towards implementing the Performance appraisal systems in their

organization? From the above chart it is evident that 72% said that the top management is effective in implementing the performance appraisal system and 28% are partial in performance appraisal and are not fully effective.

14)Does management give you clear feedback on your performance? a)yes c)no

DOES MANAGEMENT GIVE YOU CLEAR FEEDBACK ON YOUR PERFORMANCE?

NO 28%

YES NO

YES 72%

INTERPRETATION: The above Pie chart shows whether management gives the employees a clear feedback on their performance

From the above chart it is evident that 72% say that they get a clear feedback from the management after performance appraisal and 28% are not satisfied and say no that the management does not give a clear feedback.

15)Adverse remarks in the appraisal have been ever communicated to you? a)yes b)no c)not applicable

ADVERSE REMARKS IN THE APPRAISAL HAVE BEEN EVER COMMUNICATED TO YOU?

NOT APPLICABLE 8%

YES 44%

YES NO NOT APPLICABLE

NO 48%

INTERPRETATION: The above Pie chart shows whether Adverse remarks in the appraisal have been ever

communicated to individuals after appraisal From the above chart it is evident that 48% say that they never received feedback about their adverse performance 44% said yes that adverse remarks about their performance were communicated to them and 8% voted as not applicable to them.

16)Do you think performance appraisal plays a vital role in career growth? a)yes b)no

DO YOU THINK PERFORMANCE APPRAISAL PLAYS A VITAL ROLE IN CAREER GROWTH?

NO 8%

YES NO

YES 92%

INTERPRETATION: The above Pie chart was drawn to confirm whether performance appraisal plays a

vital role in career growth From the above chart it is evident that 92% said yes and 8% said no.the graph concludes that performance appraisal plays a vital role in career growth.

17)Are your potentials identified for your future development? a)yes b)no

ARE YOUR POTENTIALS IDENTIFIED FOR FUTURE DEVELOPMENT?

NO 12%

YES NO

YES 88%

INTERPRETATION: The above Pie chart was drawn to confirm whether individuals potentials are identified for their future development.

From the above chart it is evident that 88% said yes and 12% said no. The graph concludes that individuals potentials are identified for their future development.

18)Do you maintain a sound relationship with your peers, superiors and subordinates? a)yes b)no

DO YOU MAINTAIN A SOUND RELATIONSHIP WITH YOUR PEERS,SUPERIORS AND SUBORDINATES?

NO 0%

YES NO

YES 100%

INTERPRETATION: The above Pie chart reveals relationship and interaction levels of employees with

their peers subordinates and superiors It is evident that 100% of employees maintain a good relationship and interaction levels with their peers subordinates and superiors and there is no one who does not do so,as the above chart shows its 0%

19)Do you think your skills are properly utilized by the management? a)yes b)no

DO YOU THINK YOUR SKILLS ARE PROPERLY UTILIZED BY THE MANAGEMENT

NO 21%

YES NO

YES 79%

INTERPRETATION: The above Pie chart was drawn to confirm whether individual skills are properly utilized

by the management in the job performed by them. From the above chart it is evident that 79% said yes and 21 % said no. The graph concludes that individuals individual skills are properly utilized by the management in the job performed by them.

20)Does your management provide reward for your better performance? a)yes b)no

DOES YOUR MANAGEMENT PROVIDE REWARD FOR YOUR BETTER PERFORMANCE?

NO 36%

YES NO
YES 64%

INTERPRETATION: The above Pie chart concludes whether management provides reward for their better

performance to encourage and motivate them. From the above chart it is evident that 64% said yes and 36 % said no. The graph concludes that 64% of the sample are satisfied and they feel that they are rewarded for their performance where as 36% feel that they are not rewarded.

21)Is work performed on daily basis is challenging? a)yes b)no

IS WORK PERFORMED ON DAILY BASIS IS CHALLENGING?

NO 28%

YES NO

YES 72%

INTERPRETATION: The above Pie chart was drawn to know whether the work performed on a daily basis is

challenging or not challenging. From the above chart we can conclude that for the majority of the sample its challenging.72% of them said yes and 28% said no.

22)How far personal goals play vital role than organizational goal? a)adequate b)satisfactory c)good d)very good

HOW FAR PERSONAL GOALS PLAYS VITAL ROLE THAN ORGANIZATIONAL GOAL?
VERY GOOD 8% ADEQUATE 20%

ADEQUATE SATISFACTORY GOOD VERY GOOD

SATISFACTORY 20% GOOD 52%

INTERPRETATION: The above Pie chart was drawn to know how far personal goals play vital role than

organizational goal and how far are these both related to each other? From the above chart we can conclude that for 52% its good amount and 20% satisfacrory, 20% adequate and 8% very good.we can conclude that may be personal goal and organizational goals are not very strongly related but are related to some extent.

23)Are you given authority to participate in decision-making? a)yes b)no

ARE YOU GIVEN AUTHORITY TO PARTICIPATE IN DECISION MAKING?

NO 24%

YES NO

YES 76%

INTERPRETATION: The above Pie chart was drawn to know whether the employees were ever given a chance

to join a decision making process. From the above chart we can conclude that for the majority of the sample its were given authority to participate in decision making. A 76% of them said yes and 24% said no.

24)Are you satisfied with your performance? a)yes b)no c)satisfactory

ARE YOU SATISFIED WITH YOUR PERFORMANCE?

SATISFACTORY 16%

NO 12%

YES NO SATISFACTORY
YES 72%

INTERPRETATION: The above Pie chart was drawn to know whether the employees were satisfied with their

job performance or not, they were given three options of which they voted as From the above chart we can conclude that 72% were satisfied completely with their performance in the job and 12% were not and about 16% were partially satisfied and these people who are not satisfied and partially satisfied need to improve their job performance.

25)How many promotions did you get in ECIL? a)<=4 b)5 c)6 d)>=7

HOW MANY PROMOTIONS DID YOU GET IN ECIL?

>=7 28% <=4 40%

<=4 5 6

6 4%

>=7

5 28%

INTERPRETATION: The above Pie chart was drawn to know how many times was an employee promoted during their tenure

From the above chart we can conclude that 40% of the sample were promoted less than or equal to 4 times.28% were promoted 5 times and 28% were promoted greater than or equal to 7 times and 4% of the sample were promoted 6 times. performance.

QUESTIONAIRE
General Information Name: Designation: 1)How do you feel working in ECIL? a)proud b)partially satisfied c)satisfied Age: Date:

d)not satisfied

2)How long have you been working in ECIL? a)5-10 years b)10-15 years c)15-20 years d)20 and above 3)How was recruitment done in the organization? a)campus selection b)recruitment board c)employee exchange d)direct walk in 4)Are you satisfied by the present system of selection? a)yes b)no 5)Performance appraisal is an instrument for, a)career growth b)training c)training and development d)disciplinary action

6)The performance of an employee should be measured against, a)job knowledge b)quantity and quality of the output c)leadership abilities d)all of the above 7)To which of the following do you give importance for? a)quality of the output b)quantity of the output d)availability in the workspot c)time schedule

8)Does management conduct training and development programs to improve your skills? a)yes b)no 9)Do you accept training and counseling are the means to improve the performance of an individual? a)yes b)no c)at times only

10)The present appraisal system helps management to identify the strength and weakness of an individual? a)strongly agree b)agree c)disagree d)strongly disagree 11)Do you resist or adapt changes? a)yes b)no c)partially

12)Do you think performance and potential are weighed in your performance appraisal systems? a)yes b)no 13)What do you think about the top management commitment towards implementing the Performance appraisal systems in your organization? a)effective b)partial 14)Does management give you clear feedback on your performance? a)yes c)no 15)Adverse remarks in the appraisal have been ever communicated to you? a)yes b)no c)not applicable 16)Do you think performance appraisal plays a vital role in career growth? a)yes b)no 17)Are yor potentials identified for your future development? a)yes b)no 18)Do you maintain a sound relationship with your peers, superiors and subordinates? a)yes b)no 19)Do you think your skills are properly utilized by the management? a)yes b)no 20)Does your management provide reward for your better performance? a)yes b)no 21)Is work performed on daily basis is challenging? a)yes b)no 22)How far personal goals play vital role than organizational goal? a)adequate b)satisfactory c)good d)very good 23)Are you given authority to participate in decision-making? a)yes b)no 24)Are you satisfied with your performance?

a)yes

b)no

c)satisfactory

25)How many promotions did you get in ECIL? a)<=4 b)5 c)6 d)>=7

5.0 CONCLUSION
In the Organizational setting mostly people are interested to evaluate others by appraising their performance but hardly prepared to be evaluated. Hence it is a real challenge for HR professionals to make the appraisal system more pragmatic to ensure that people trust in the system. So long a human being evaluates another; there would be some subjectivity in the assessment. Thus it is essential to balance the subjectivity and objectivity in the appraisal system to make it people oriented, workable and productive. Moreover the purpose of the system should be more developmental rather than punitive in nature. If the performance appraisals have to achieve the variety of developmental objectives the appraisal system needs to be designed well and its implementation monitored well. Most appraisal systems are well designed but do not get implemented well due to poor monitoring and follow ups. Such a monitoring needs to be done comprehensively for a few years until the system becomes a matter of habit and part of work life. Monitoring may be done for the entire system every year or for every significant component of the system.

6.0 SUGGESTIONS
1) The employees should be given a Best Employee of the Year award, based on the Performance Management System in ECIL, which would make employees to take interest in the appraisal done. 2) Formal counseling sessions with the H.R may be held for the employees if any employee is not satisfied with his appraisal in order to eliminate problems. 3) It should be remembered that in the ultimate analysis Performance Appraisal & Development Systems are not merely appraisal instruments but instruments to improve management practices and built professionally effective management culture. 4) Identify the KRAs (Key Resource Areas) and communicate the same to the employees so that he can be judged appropriately based upon it.

5) They must be appreciated for their individual achievements during the period and training/guidance must be given if they lack in some areas.

6) The team leader should treat everyone equally without any bias and give appropriate ratings to each member depending upon their performance.

7) To motivate employees for their extra ordinary performance apart from the PLIs there must be some token of appreciation given for him in the form of promotions or a simple gift voucher etc.,

8) The token of appreciation should be given to those employees whose performance was extra ordinary as well as who have been in the organization for a longer period of time.

9) The feedback from employees must also be taken regarding the working style of management so that the management functions can also be improved. They must be given the freedom to express their concerns.

10) While conducting the Performance Review the team member must also be given the right to rate his team leader or provide him the feedback because a cordial relation between the team lead and members of the team is very important and the lack of good understanding may hamper the team work.

11) The problems or hindrances which are faced by employees should be taken care of, so that the employee is satisfied and works enthusiastically.

12) The employees must be informed before hand that he needs to provide a proper justification for the ratings given by him and it will ultimately help him to recognize his accomplishments and drawbacks.

13) The one to one meeting should be conducted in a peaceful manner so that it does not lead to any argument and the desired objective is achieved.

14) Measures must be taken for effective time management because the delay in the process will lead to distractions.

15) Suggestions must be taken from employees after the review process in order to make it more effective.

16) The career goals and career prospects of an employee must be taken into consideration so that they stay committed to the organization.

17) The negative feedback should be given and taken in a constructive manner.

18) There must be delegation of authority so that one individual doesnt feel the pressure of handling all the responsibilities.

19) Efforts must be taken to reduce the communication gap between the employees and management.

20) All the employees of the organization must maintain a personal diary to record their day to day achievements as well as the problems they faced during performing a particular task so that he has a record of all the things and it can be reproduced in front of the team leader or management as and when the need arises.

7.0 BIBLIOGRAPHY
BOOKS REFERRED T.V.Rao, (2004), Performance Management And Appraisal System. Published by Response books, A divison of Sage Publications, New Delhi. Gary Dessler, Human Resource Management.11th edition. Published by Prentice hall of India pvt limited, New Delhi.

R.Wayne Mondy, Robert M.Noe, (2005) Human Resource Management.9th edition. Published by Pearson Prentice Hall, New Delhi. V.S.P.Rao, (2005). Human Resource Management 2nd edition, Published by Excel books. New Delhi. WEBSITE VISITED http://www.ecil.com/ http://www.aswini.ecil.com/ http://www.performanceappraisal.com/ http://www.google.com/