EXECUTIVE SUMMARY

On partial fulfillment of the Post Graduation course in Management in which an internship program has been incorporated in the curriculum, during which a study has to be done in an organization mainly to extract a practical knowledge and to learn the application of theoretical knowledge in the real corporate world. The professional training is an integral part of an PGDM program. It helps the students to understand the practical aspects of managing business in much better ways. As a part of my PGDM program at Interscience Institute of Science & Technology, Bhubaneswar I was supposed to work for a period of 45 days or six weeks. I was required to undertake a detailed study of performance management system (PMS) for executives as whole in human resource department. This part of the PGDM has helped me in applying my theoretical knowledge into practical experience. The 45 days training process has helped me in getting a sufficient knowledge of how the theories and theorems in various books are applied in the real world. The Company OPGC was incorporated on November 14, 1984 under the Companies Act as a private limited company under the name Orissa Power Generation Corporation Limited.. I conducted a research work at the OPGC Bhubaneswar corporate headquarter to get a thorough understanding of the system of performance management for the employees that the organisation is following. as for the method of data collection. I collected some data directly from the primary sources like the responses from the executives regarding the system was collected through the questionnaires, the online appraisal form and the statistical data were collected directly from the sources. And some other secondary sources collection were also used. For example the companys official website was used for some deriving some information. The summer training programe was really a learning experience and I hope this will be useful and helpful to OPGC and to me in coming days of my life.

Table of Contents
Chapter No. Contents

Project report on PMS at OPGC

Page No.

Company Profile History of company Vision Mission Corporate objective Organizational structure Data of the company

1-9

Theoretical Framework PMS Introduction Objective of the study Scope of the study Significance of the study Research design Research methodology Limitation of the study Performance Management

10-22

23-66

System at OPGC,Bhubaneswar Introduction Objectives PMS calculations different levels Survey of PMS Recommendations Conclusion

of

67

1. Objective of the project

Over the present research an attempt has been made to the study existing Executive Performance Appraisal System at OPGC. The major objectives of the present study are as follows: To study the effectiveness of the existing performance appraisal systems. To study the purpose of performance appraisal in OPGC. To evaluate the existing system. To find the relative gaps in the performance of the appraisal. To identify the problem in the system and provide measure for improvement. To study the contribution of executive towards the growth and success of the organization.

Project report on PMS at OPGC

2. About OPGC
Orissa Power Generation Corporation Limited (OPGC) was incorporated on November 14, 1984. OPGC started as a wholly owned Government Company of the State of

Orissa with the main objective of establishing, operating & maintaining large Thermal power generating stations. In the pursuit of its objective, OPGC established IB Thermal Power Station having two units of 210 MW each in the Ib valley area of Jharsuguda District in the State of Orissa. These Units have become operational since 1994 (1st Unit) and 1996 (2nd Unit) respectively. The entire generation from these units is committed to Gridco the state owned Power Transmission & Trading Company on the basis of a long-term power purchase agreement. As a part of the reform in the energy sector of the state, 49% of the equity was divested in favor of a Private investor (American Company) i.e. AES Corporation, USA in early 1999. OPGC with its present ownership structure is unique of its kind in the country and has excellent track record of plant performance and earnings. The Company has owned many state as well as national level awards and recognition Today OPGC has firmly established its credentials as a successful power generating company both technically & commercially by providing safe, clean & reliable power.

Project report on PMS at OPGC

2.

Vision & Goal

To be one of the best and reliable power utilities of India To make every work place a safe work place To keep the environment clean To be socially responsible for employees and society

3.1. Present business

Project report on PMS at OPGC

As its maiden venture, the company has set up two thermal power plants with a capacity of 210 MW each in the IB valley area of Jharsuguda District in the State of Orissa (Ib Thermal power Station) at a cost of Rs.11350 million. The locational advantage of the power plant lies in its close proximity to the coal mines as well as to the Hirakud reservoir. This gives the company the distinct advantage of low cost of Raw Material leading to low cost generation. It has also undertaken the construction of seven Mini Hydel stations having a total capacity of 5075 kW as a technological demonstration. The entire generation from Ib Thermal Power Station is committed to the state transmission utility GRIDCO on the basis of a long term Power Purchase Agreement. Payment is secured through an Escrow Account and revolving Letter of Credit. Shareholder Govt. of Orissa AES India Pvt. Ltd. AES OPGC Holding (incorporated in Mauritius) Total 51 16.25 32.75 100 Percentage No. of Shares 25,00,109 7,96,178 16,05,887 49,02,174 Amount (In Rs.) 25,00,109,000 7,96,178,000 16,05,887,000 49,02,174,000

3.2. Board Of Directors & Key personnel

The management of the affairs of OPGC vests in the Board of Directors. The SHAREHOLDERS AGREEMENT, envisages equal number of nominees from both the investors. While the Chairman and Director (Finance) are nominated by Govt. of Orissa, the Managing Director and the Director (Operation) are the nominees of the strategic partner, AES. The present Board of Directors consists of 6 members i.e. 3 members nominated by each partner. Commissioner-cum-Secretary - Energy, Govt. of Orissa is the ex-officio Chairman of the Company. The Managing Director is in-charge of the day-to-day management under the supervision of the Board. They in turn are assisted by a team of dedicated and experienced professionals in various fields. It is one of the three companies in the State Sector which has signed a corporatization agreement which has bestowed considerable freedom to the Board of Directors in managing the affairs of the company.

Project report on PMS at OPGC

G. Mathivathanan, IAS Chairman

Mr. Venkatachalam K Managing Director

Mr. Indranil Dutta Director Operation

Mr. Santosh Kumar Pattanayak,IRAS Director Finance

Mr. Hemant Sharma, IAS Director

Mr.Venu Gopal Nambiar Director

3.3.Strength of OPGC

This is a Pithead Power plant with coal field located nearby & a Merry go round system for Coal transportation. There is adequate water availability from the nearby Hirakud Reservoir with an Intake Channel connected to Reservoir. Long term PPA with the State Power Transmission utility i.e. GRIDCO for 100% off-take. Payment security mechanism comprising Escrow Account and revolving Letter of Credit with Gridco. Infrastructure like land and common facilities are already available for expansion of two more units. A Dedicated workforce of Young Engineers & support staff.

Project report on PMS at OPGC

4. Community
ITPS has a Good Town Ship with all modern amenities. The township. along with the plant is surrounded and well protected with a boundary wall of 12 KM length. The township comprises quarters for 672 Employees. It contains Training Hostel, Erector's Hostel( Guest House), English Medium DAV school, Oriya Medium High School, Officers Club, Community Center, Shopping Complex,
Hospital, Banks, Post Office, Bust stand, temple & Helipad.

Just

at the out skirt of the boundary there is Banharpalli police station with barrack. 4.1. Peripheral Development OPGC has been regularly contributing substantial fund for developmental activities of various infrastructures of peripheral villages some of which are :

Construction & development of village Road. Village School/ College Bdg. Renovation, construction & repair. Construction of Community Centers, Club Bdg. Renovation of Village Pond. Providing Free medical counseling & treatment to people of all peripheral villages. Extending educational facilities (at IBTPS ) to people of all peripheral villages. Providing various aids to village Schools / Colleges such as Furniture, Library & science equipments, computers. Providing Drinking water facilities & execution of lift irrigation Projects. Assistance for Rural Electrification to nearby villages.

4.2.OPGC PERIPHERY DEVELOPMENT POLICY As part of corporate social responsibility, OPGC will undertake periphery development work which will help the community at large. OPGC at present has its operations at one location i.e. IB

Thermal Power Station, Banharpalli. So, its main focus will be on adjacent areas of ITPS. The main areas on which OPGC will support the Local community will be; 1. Health 2. Education 3. Drinking Water 4. Road 5. Street Lighting 6. Lift Irrigation 7. Cultural & Sport Functions

Project report on PMS at OPGC

5. Generation Data
Year 2009-10 2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03 2001-02 2000-01 1999-00
Generation (MU)

PLF % 80.32 86.63 82.99 90.18 84.12 86.04 81.60 71.24 70.64 81.58 85.82

% Aux. Cons.

Sp.Oil. Cons.ML/ Kwh 0.84 0.67 0.62 0.383 0.399 0.652 1.199 1.673 1.518 1.697 1.214

Sp.Coal Cons. Kg/Kwh 0.86 0.88 0.88 0.827 0.842 0.834 0.872 0.850 0.844 0.847 0.856

2955.39 3187.33 3043.54 3317.81 3094.78 3166.42 3010.48 2621.13 2598.81 3001.58 3166.37

10.46 10.35 10.11 10.15 10.23 10.34 10.94 11.06 10.69 10.58 10.26

Project report on PMS at OPGC

OPGC has been regularly contributing to the shareholders as well as for social cause as may be seen from statistics below.
Year 2009-10 2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03 2001-02 2000-01 1999-00 1998-99 1997-98 1996-97 Total Turnover 455.94 464.87 484.69 477.07 439.82 426.69 423.11 473.28 411.59 418.03 456.52 430.39 381.01 330.53 6,073.54 Profit 81.19 111.37 168.7 170.22 161.91 153.37 147.50 197.23 132.22 109.89 124.39 112.80 66.15 104.596 1,841.54 % Dividends 0 21 0 0 24 24 23 30 35 30 15 30 7.5 239.5 117.66 117.66 112.75 147.07 171.58 147.07 73.53 147.07 33.75 1,171.08 60.00 60.00 57.00 75.00 87.50 75.00 37.50 75.00 33.75 613.25 57.66 57.66 55.25 72.07 84.08 72.07 36.03 72.07 557.33 Total 0 102.94 Govt. of Orissa 0 52.50 AES 0 50.44

Manpower
Executives112 Non-executives383 NMR13 MEs15 AES11 Contract06 Cost & Mgt Trainee- 04

Total

544

Project report on PMS at OPGC

6. Plant Photographs

Service Building Front

Plant view from Swyd.

Plant view from Chimney top

MD Sri Srinivas Rao taking Guard of Honor on Republic Day

TG, Boiler & Bunker building at night

Plant view from an angle

Main Control Room

Project report on PMS at OPGC

7. Introduction to PMS
Organization is a consciously coordinated social entity with a relatively identifiable boundary that functions on a relatively continuously basis to achieve a common goal or set of goals. 4ms of organization are money, material, machine and manpower. Organization functions with these 4ms and its effectiveness depends upon effective management of these 4ms. So manpower that is human resource is an important source of an organization. HRD concept emerged to effectively manage human resource of an organization. HRD is a process by which the employees of an organization are helped in a continuous and planned way to acquire or sharpen capabilities required to perform various functions associated with their present or future roles, develop their general capabilities as individuals and discover and exploit their own inner potential for their general capabilities as individuals and discover and exploit their own inner potentials for their own and organizational development purposes. HRD process is facilitated by mechanisms like performance appraisal, training, organizational development, feedback and counseling, career development, potential development, job rotation and rewards. Among 4ms of organization man manages other 3ms of organization. So performance of organization depends on performance of its man power or employees. Performance refers to how an employee is fulfilling the requirement of the job management in the organization. The modern and systematic performance appraisal system enables the management to know to what extent it has been in releasing the organizational goals and at the time of the individual comes to know his relative worth in terms of his performance. In this regard the topic of executive performance appraisal system in OPTCL has been chosen to find out the degree of effectiveness of the system.

8. Steps for developing a systematic performance appraisal

8.1. Identify key performance criteria

Development of key performance criteria should be based on a comprehensive job description and undertaken in consultation with employees. 8.2. Develop appraisal measures In order to obtain accurate and valid performance appraisals, appraisal measures should be tailored to the specific job or job family (i.e., groups of similar jobs). An evaluation of factors in the work environment which help or hinder performance is also recommended. This ensures that realistic expectations are set for employees performance, and is also likely to increase the perceived fairness and acceptability of performance appraisals. 8.3. Collect performance information from different sources Traditionally, it has been the sole responsibility of managers / supervisors to assess performance. However, other organizational members (e.g., clients, coworkers, subordinates) can be a valuable source of information as they are likely to have exposure to different aspects of an employees performance. Collecting information from multiple sources can increase the accuracy of performance evaluation (i.e., reduce bias), and increase employees perceptions of fairness. 8.4. Conduct an appraisal interview The two central purposes of the appraisal interview are to: 1. Reflect on past performances to identify major achievements, areas for further improvement, and barriers / facilitators to effective performance 2. Identify goals and strategies for future work practice. The appraisal interview should be a constructive, two-way exchange between the supervisor and employee, with preparation for the interview done by both parties beforehand. 8.5. Evaluate the appraisal process The performance appraisal process should undergo regular review and improvement. For example, focus groups or surveys could be conducted to gauge employees perceptions of the appraisal process. A successful performance appraisal process should demonstrate a change in both the ratings of employees performance and aspects of the work environment that impact upon work performance.

Project report on PMS at OPGC

8.6.Best practice in performance appraisal

In essence, best practice in performance appraisals involves: Integrating performance appraisal into a formal goal setting system

Basing appraisals on accurate and current job descriptions

Project report on PMS at OPGC

Offering adequate support and assistance to employees to improve their performance (e.g., professional development opportunities) Ensuring that appraisers have adequate knowledge and direct experience of the employees performance Conducting appraisals on a regular basis.

9. Objectives of performance appraisal system

a) Salary Increase Performance appraisal plays a role in making decision about salary increase. Normally salary increase of an employee depends upon on how he is performing his job. There is continuous evaluation of his performance either formally or informally. This may disclose how well an employee is performing and how much he should be compensated by way of salary increase. b) Promotion Performance appraisal plays significant role where promotion is based on merit and seniority. Performance appraisal discloses how an employee is working in his present job and what are his strong and weak points. In the light of these, it can be decided whether he can be promoted to the next higher position. c) Training and Development Performance appraisal tries to identify the strengths and weakness of an employee on his present job. This information can be used for devising training and development programmers appropriate for overcoming weaknesses of employees. d) Feedback Performance appraisal provides feedback to employees about their performance. A person works better when he knows how he is working. This works in two ways, firstly, the person gets feedback about his performance. Secondly, when the person gets feedback about his performance, he can relate his work to the organizational objectives.

e) Pressure on Employees

Project report on PMS at OPGC

Performance appraisal puts a sort of pressure on employees for better performance. If the employees are conscious that they are being appraised in respect of certain factors and their future largely depends on such appraisal. f) Retention of good employees Performance appraisal provides a f) Others a) Identifying systemic factors that are barriers to, or facilitators of, effective performance. b) To confirm the services of probationary employees upon their completing the probationary period satisfactorily. c) To improve communication. Performance appraisal provides a format for dialogue between the superior and the subordinate, and improves understanding of personal goals and concerns. This can also have the effect of increasing the trust between the rater and the ratee. d) To determine whether HR programmes such as selection, training, and transfer have been effective or not.

10.HOW TO CONDUCT A PERFORMANCE APPRAISAL PROCESS

The following five-step approach to conducting a systematic performance appraisal is recommended: 1. Identify key performance criteria 2. Develop appraisal measures 3. Collect performance information from different sources 4. Conduct an appraisal interview 5. Evaluate the appraisal process.

STEP 1: IDENTIFY KEY PERFORMANCE CRITERIA

Perhaps one of the most challenging aspects of setting up a performance appraisal is deciding what to assess. In essence, four key dimensions of performance should be considered in a performance appraisal.

KEY DIMENSIONS OF PERFORMANCE Competencies Behaviors Results / outcomes

Project report on PMS at OPGC

Knowledge, skills, and abilities relevant to performance Specific actions conducted and / or tasks performed Outputs, quantifiable results, measurable outcomes and achievements, objectives attained

Organizational citizenship behaviors

Actions that are over and above usual job responsibilities To ensure that the performance criteria are relevant to work

practice and acceptable to appraisers and employees: i) Base the performance criteria on an up-to-date job description ii) Develop criteria in consultation with appraisers and employees. i) Base the performance criteria on an up-to-date job description: Clear and explicit links between performance appraisal and a job description will ensure the relevance of the appraisal. If a detailed job description is not available or is out-of-date, it is strongly recommended that an accurate job description be developed prior to conducting a performance appraisal. ii) Develop criteria in consultation with appraisers and employee: Linking performance appraisals with job descriptions can help to focus the appraisal process on the key competencies, behaviours and outcomes associated with a particular role or position. It can also be useful to consult with employees to:

Ensure that key aspects of a role / position are represented in the job description, for example: Conduct assessments Plan interventions Manage cases Liaise with and refer to other providers Keep up-to-date service records and case notes Write reports

Develop a clear understanding of the relative importance of various competencies,

Behaviours and outcomes. Identify how these key competencies, behaviors and outcomes can be fairly and accurately assessed. Employees are more likely to accept and be satisfied with the appraisal system if they participate in the development of appraisal criteria and measures, and in the process of conducting appraisals. Strategies for facilitating employees participation include: Engagement in formal meetings or informal discussions with supervisors to seek input and / or feedback on appraisal measures and criteria. Representation on groups / committees involved in the design and implementation of performance appraisals Inclusion of self-appraisals in the appraisal process. Providing opportunities for employees to contribute to the performance appraisal of coworkers and managers / supervisors.It is also important that employees perceive the appraisal system to be equitable and fair.

Project report on PMS at OPGC

STEP 2: DEVELOP APPRAISAL MEASURES

Once clear and specific performance criteria have been developed, the next step is to decide how to assess employees performance. It is recommended that a structured and systematic approach is taken to assessing performance. Problems that arise when an unstructured blank sheet approach is used include: Increased chance of appraiser errors (i.e., reduced accuracy) Knowledge, skills and abilities most critical to job performance may be overlooked (i.e., feedback may have limited impact on performance effectiveness) Reduced consistency between appraisers (i.e., evaluations may reflect differences between appraisers rather than actual differences in a employees performance) Perceptions of subjectivity in evaluations, which may in turn, reduce employees satisfaction with, and acceptance of appraisals.

There are three important considerations in the design of appraisal measures: i) ii) iii) Generic versus individually tailored measures Objective versus subjective assessments Assessing the impact of the work environment on performance.

i) Generic versus individually tailored measures

Many workplaces use a generic rating form for all employees irrespective of their role or position within the organisation. Although this approach can save time and minimise cost, the accuracy and relevance of appraisals may be significantly diminished. The one size fits all approach of generic measures may overlook important performance criteria that are relevant to particular jobs, and may also include criteria that are irrelevant to others. Where time and other resources permit, it is more appropriate to construct appraisal formats tailored to specific jobs or families of jobs. If the development of job-specific (i.e., individually tailored) appraisal formats is beyond the resource capacity of the organisation, an alternative would be to develop two groups of criteria: 1) Core competencies that have applicability to the performance appraisal of all employees within the organisation 2) Additional competencies applicable only to some jobs and included in the performance appraisal if relevant. ii) Objective versus subjective assessments A basic distinction between different types of appraisal measures concerns the use of objective or subjective criteria. Objective assessments of work performance Objective measures of job performance involve counts of various work-related behaviors. Some common objective job performance measures include Absenteeism (number of days absent) Accidents (number of accidents) Incidents at work (number of incidents / assaults / altercations) Lateness (days late) Meeting deadlines. Objective measures can be relatively quick and easy to obtain (given good organizational record-keeping). However, it can be unwise to place too much emphasis on these types of objective measures. An exclusive focus on results / outcomes may mask factors that impact on employees performance that are beyond their control (e.g., client workload). Subjective assessments of work performance Subjective measures rely on the judgment of an appraiser (self, coworkers, or supervisor). Subjective assessments are commonly used in performance appraisals and often involve

Project report on PMS at OPGC

the use of rating scales. Subjective assessments are more likely to provide accurate performance appraisals when: The behaviors and outcomes being assessed are stated in clear behavioral terms The employee understands the measures (e.g., rating scales) being used to evaluate their performance, and agree that the measures are fair and accurate (i.e., measures what it is supposed to) Measurement is as brief as possible whilst addressing essential behaviors and outcomes (frustration with long and unwieldy questionnaires may introduce error in responses). iii) Assessing the impact of the work environment on performance The goal of a performance appraisal is to support and improve employees performance and effectiveness. Therefore, it makes sense for an appraisal to include an assessment of factors in the work environment that help or hinder a employees capacity to perform effectively. Explicit assessment of environmental factors is also likely to increase the perceived fairness and acceptability of performance appraisals. For example, an employees capacity to provide effective treatment interventions is influenced by factors such as: Access to private, soundproofed, adequately sized rooms for counselling Availability of validated, user-friendly assessment tools

Project report on PMS at OPGC

STEP 3: COLLECT PERFORMANCE INFORMATION FROM DIFFERENT SOURCES

Once the appraisal measures are developed, the next step involves collection of accurate performance information. A common trap is to begin noting observations of employees just before conducting appraisals. This is likely to give an inaccurate picture of a employees performance. Ideally, employees performance should be observed in a systematic way over time (e.g., in a diary). This method ensures the accuracy of information about their performances. Many employees in the organisation operate with a relatively high degree of autonomy. This combined with the heavy workload of most managers / supervisors, may limit opportunities to conduct regular observation of employees performance. In addition, perceptions of ongoing monitoring may foster a sense of surveillance which can damage staff morale. A more suitable approach may be to keep critical incident reports that note specific examples of both excellent and unsatisfactory performances. Supervisors can also encourage employees to keep track of their own performance records such as emails or letters that commend them on their achievements.

Traditionally, it has been the sole responsibility of managers / supervisors to assess performance. However, other organisational members can be a valuable source of information as they are likely to have exposure to different aspects of a employees performance. This approach is known as 360-degree feedback. For instance, coworkers can provide valuable information on teamwork skills, and subordinates can provide useful information on leadership style. There are many advantages to obtaining feedback on performance from sources other than supervisors or managers. Key benefits include: Accuracy and reduced bias (incorrect information from one source can be corrected from another) Increased likelihood that employees will perceive the performance appraisal system to be a fair and accurate reflection of their performance (compared to relying on supervisor ratings alone). If time and resources are limited, it is recommended that supervisor appraisals be conducted in conjunction with self-assessment. Including self-assessments as part of the appraisal process is likely to enhance employees commitment to, and satisfaction with, the appraisal process. It also provides employees with an opportunity to identify barriers and facilitators to effective performance in their work environment. Five different sources of performance appraisal information are considered here: i) ii) iii) iv) v) Manager / supervisor appraisals Self-appraisals Coworker appraisals Subordinate appraisals Client appraisals.

Project report on PMS at OPGC

i)

Manager / supervisor appraisals: Managers / supervisors play a central role in the appraisal process, and should always be included as one of the main appraisers. In essence, managers and supervisors have two roles in performance appraisal: 1. Judge: assessing performance 2. Coach: providing constructive feedback and identifying areas for improvement. Performing both roles simultaneously can be difficult. Employees may be reluctant to admit areas for improvement if performance assessment is linked with desired outcomes such as

pay, promotion or opportunities to work in desired areas. One solution is to separate the judge and coach roles by conducting separate appraisal meetings. ii) Self-appraisals: The process of evaluating ones own performance can help to increase employees commitment to the appraisal process, perceptions of appraisal fairness, and satisfaction with the appraisal process. Self-appraisal can also be useful for identifying areas for development. Not surprisingly, self-appraisals are usually biased towards leniency. Strategies to increase the accuracy of self appraisals include: a. Using clear definitions of performance criteria linked to specific, observable behaviours b. Informing employees that their ratings will be checked and compared to other sources of c. appraisal (i.e., for accuracy) d. Ensuring employees receive regular feedback on their performance. It is recommended that self appraisals are used for professional development purposes, rather than for making administrative decisions (i.e., pay increases, promotion). iv) Subordinate appraisals: Subordinates are a valuable source of information regarding particular aspects of a supervisor or leaders performance such as communication, team building or delegation. Subordinates can provide feedback to help managers / supervisors develop their skills in these areas. The focus should be on aspects of managerial performance that subordinates are able to comment upon. This source of appraisal may only be appropriate in larger organisations where there are sufficient subordinates to allow anonymity. iii) Client appraisals: Clients may also offer a different perspective on a employees performance, particularly for jobs that require a high degree of interaction with people. For example, client appraisals can be a valuable source of feedback regarding the quality of service provision (e.g., the quality of interaction, degree of empathy, level of support, degree of professionalism). Organizations often have performance contracts that specify goals and deliverables for client outcomes. Whilst it is important that organizational goals and deliverables are

Project report on PMS at OPGC

reflected in the appraisal criteria for individuals and teams, it is recommended that particular care be taken if incorporating client outcomes.

Project report on PMS at OPGC

Relying on client outcomes as an indicator of performance can have undesirable effects due to the complex and sensitive nature of work. A range of factors may influence client outcomes, many of which are outside the control of an individual employee. It is rare for a successful (or otherwise) outcome to be the sole result of one persons efforts. This makes client outcomes a poor reflection of the quality of treatment provided by the employee. For example, good employee performance will not always bring about client improvements, and client relapses may not be due to poor employee performance. In addition to considering client outcomes, it may also be beneficial to focus on employees skills and abilities in providing services per se (i.e., independent of client outcomes). Strategies to support appraisers and enhance appraisal accuracy Rating another persons performance is not an easy task, particularly with complex jobs or performance criteria. Strategies to support appraisers and increase the likelihood of accurate assessments include: Providing practical training in rating techniques, which includes opportunities to practice appraising performance and providing feedback Limiting the assessment to performance criteria that an appraiser has observed / experienced in regard to the employee Providing structured assessment tools with clear explanations regarding the criteria to be assessed, and performance standards.

STEP 4: CONDUCT AN APPRAISAL INTERVIEW

The next step in a performance appraisal is to conduct the appraisal interview. The two central purposes of the appraisal interview are to: Reflect on past performance to identify major achievements, areas that require further development, and barriers / facilitators to effective performance Identify goals and strategies for future work practice. As discussed below, supervisors and managers can use a range of strategies to ensure that the appraisal interview is positive, constructive and of greatest benefit for employees effectiveness.

Before the interview

Project report on PMS at OPGC

Help employees to become familiar and comfortable with talking about their performance by engaging in regular, informal communication on work progress, potential obstacles and issues, possible solutions and assistance Do your own preparation plan ahead. Draft a list of the issues that you want to address with the employee (i.e., strengths and weaknesses of performance, strategies to improve performance). Give specific examples of the employees performances that you want to highlight. During the interview Begin with positive feedback to put the employee at ease Set goals mutually ensure employees participate in determining specific, challenging but attainable goals for future work performance Ensure that there is a clear agreement on performance objectives and the evaluation criteria for the next year Keep written records of the appraisal interview on which both parties have signed off. After the interview Coach employees regularly provide frequent feedback to help employees improve their performance Relate rewards to performance by linking appraisal results to employment decisions such as promotions and salaries, employees are more likely to prepare for, participate in, and be satisfied with the appraisal system.

STEP 5: EVALUATE THE APPRAISAL PROCESS

As with any organizational system, the performance appraisal process should undergo regular review and improvement. For example, the process of performance appraisal could be evaluated by conducting focus groups or surveys with employees to gauge their satisfaction with the appraisal process (and suggestions for improvements). It may also be useful to monitor the types of issues raised by supervisors and employees over time. A successful performance appraisal process should demonstrate a change in both the ratings of employees performance (i.e., ideally performance ratings should improve, or at least remain at a satisfactorily stable level over time) and the work environment (i.e., evidence that significant barriers to work practice are being addressed by the organisation).

Project report on PMS at OPGC 11.DIFFERENT TYPES OF EMPLOYEE APPRAISAL SYSTEMS

Depending upon who is doing appraisal methods of performance appraisal could be classified into five categories. Ratings by superiors: in this system, supervisors appraise the performance of subordinates without involving the latter. The method is most commonly used in government organization. However it suffers from prejudiced approach and the ability of the superiors. The various methods which are under this system are: 1. Ranking method 2. Paired comparison method 3. Graphic rating scales method 4. Forced choice list method 5. Critical incidence method 6. Forced distribution method

12.Performance Management System for OPGC

The Salient Features of a Scorecard-based Performance Measurement System are enunciated below: 1.1 Why use a Balanced Scorecard 1. Clarify and translate vision and strategy -A balanced scorecard often leads senior managers to Articulate strategy more clearly Prioritize actions in times of transition Reach consensus about contentious or vague aspects of strategy Make the strategy tangible and operational

2. Plan, set targets and align strategic initiatives - A well crafted, accepted, and linked scorecard becomes a critical touchstone for Setting targets and milestones that support strategic objectives Planning initiatives to close critical strategic gaps Establishing budgets consistent with strategic requirements

1.2 The performance assessment elements will include

Setting of Key Result Areas (KRAs) and Competency Proficiency levels for each position Target setting on KRAs Assessment by Self & Superior

Project report on PMS at OPGC

1.3

Rating Scale for Performance Assessment There will be a five point rating scale for overall performance assessment.

1 Does not meet expectations

2 Meets most expectations

3 Meets expectations

4 Exceeds expectations

5 Demonstrates Excellence

Performance Rating

Brief Description Employee has performed as a model of excellence for his / her position. His performance is consistently exemplary under challenging conditions Employee has exceeded the expectations from the position. Employee has demonstrated good performance and overcome challenges on the job Employee is a solid and dependable performer. Employee has been consistently successful in meeting the expectations from his / her position throughout the performance period Employee has performance deficiencies that need improvement in order to meet the expectations from his / her position

Employees performance is not acceptable. Significant and immediate corrective action is necessary

Project report on PMS at OPGC

1.4 KRA

Rating Scale for KRA and Competency Assessment.

KRAs will be assessed using 5 point scale as per the following:1 Significantly below Target 2 Below Target 3 Meets Targets 4 Exceeds Targets 5 Significantly Exceeds Targets

COMPETENCY RATING SCALE Competencies (Behavioural) proficiency level will be assessed using 5 point scale as per the following:-

1 Does not meet Proficiency expectations

2 Meets Proficiency expectations

3 Meets most Proficiency expectations

4 Significantly above Proficiency expectations

5 Exceeds Proficiency expectations

Maximum KRAs of 8 Nos can be identified by the Individual in a year. However, for those employees who have joined from 1 st January of the previous appraisal year, the number of KRAs can go upto a maximum of 10. KRAs may be assigned different weightages based on the relative importance of each for the specific position. However sum total of weightages will not exceed 100.

2.0

KRA & COMPETENCY DISTRIBUTION MATRIX The KRA and Competency distribution/weightage will be on 70:30 ratio.

3.0

Performance assessment will follow a four-stage process:-

Assessment: Performance will be assessed by the superior of the individual against the targets set for the Key Result Areas and demonstration of the expected competency levels, based on which an overall performance rating will be given. Review: The assessment will then be reviewed by a higher authority, in order to provide a balanced view and to avoid assessor bias (positive or negative). Superior Executives across the hierarchy will review the Report until it reaches the level of HOD, after which it comes to the Moderation Committee for finalization. Moderation: Performance ratings will first be moderated within the various functions and then across the Division, in order to distribute ratings evenly across the organisation. Feedback Feedback on the performance will be provided to employees after the moderation process is completed. specified

Project report on PMS at OPGC

3.1 Authorities for conducting the actual performance assessment are as below:

3.1.1 Assessment of performance will be done by the direct supervisor 3.1.2 Review of assessment will be done by the assessors supervisor. In case the assessors supervisor is not the Head of the Department, the Final Assessment will be done by the Head of the Department. In case of disagreement, the views/assessment of HOD will be treated as final. 3.2 Moderation: The purpose of moderation is to ensure that there is consistency in the extent of rigour applied in assessments across Business Units / Functions and across Levels. The indicative ratings distribution pattern for the appraisal cycle 2010-11 has been shown below.

Performance 5 4 3 2 1 3.3

Distribution pattern Around 20% of employees within the Around 30% of employees within the Around 30% of employees within the Around 15% of employees within the Around 5% of employees within the

The Head of the Department is responsible for ensuring the moderation of performance of all employees across levels as per the distribution pattern. In

case, it is not maintained, the same will be carried out by the Moderation Committee. 3.4 Feedback : The Reporting Officer will discuss the performance and provide feedback to the employees on his achievements of the KRAs ( quantitative as well as qualitative factors), demonstration of competency, the barrier for achieving a particular task, areas that could have been done better and the tasks/ideas that can be taken up for implementation in future. 3.5 Matrix Reporting : In cases where there is matrix reporting, the functional head will be responsible for the overall assessment and final rating and will seek inputs from the administrative head before finalising his assessment. Development of Organisational / Functional Scorecard for all functions 4.1 departments / in overall

Project report on PMS at OPGC

4.0

The Organisational Scorecard would be cascaded by the HODs conjunction with the Business Head. 4.2 Targets will be set for the Departments / Functions, based on the business plan and goal setting.

5.0

Goal Setting Individual Level 5.1 The Key Result Areas and Targets for various positions within the department / function would be based on the specific targets for the Department / Function. Each of the Key Result Areas would have a corresponding weightage depending on the relative importance of the KRA. The sum of the weightages would be equal to 100 percent.

5.2

5.3

A maximum of 8 and a minimum of 4 KRAs will need to be considered for goal setting process for each individual. In case of employees who have joined on or after 01.01.2011, the maximum KRAs for the performance year 2011-12 will be 12 including the KRAs completed/planned from their date of joining till 31.03.2011. 6.0 6.1 6.2 Initial Discussion of the Individual Goals The KRAs must be decided through a one-to-one discussion with Reporting-Officer. the

The employee will first identify/develop draft KRAs, KPIs, Targets etc on a blank PMS Form/Page/separate piece of paper looking at the Departmental Annual Plan, key tasks not achieved last year, Tasks identified last year and need to continue/include due to continuity of activity/balance of work.

6.3

The employee will then discuss with his reporting officer on the KRAs take his input/views before finalization.

Project report on PMS at OPGC

and

6.4 After the discussion, the employee will enter the final KRAs in the submit to the Reporting Officer for his approval. 7.0 Mid-Year Review

PMS form and

7.1 For mid-term review, the Appraisee and Appraiser would sit together and review and discuss the progress on KRA achievements, and competencies and document the discussions in the space provided in the Form. 7.2 Upon commencement of the Final Appraisal Process, the Appraisee would have to enter his/her KRA wise Achievements as well as competency ratings for self. The employee would also provide relevant comments on overall achievement. 7.3 On completion of the Final Self Assessment by the Appraisee, the same have to be submitted to the Appraiser for the following tasks to be completed: 7.4 Finalization of Performance Rating The reviewer/HOD will need to review and approve the Overall Non Moderated Rating provided to the Appraisee by the Appraiser. Each Reviewer / HOD will need to confirm to the normalisation pattern as given under 3.2 above. Performance rating moderation The suggested Moderation meeting participants are as follows: The Managing Director would be the Chairman of the Moderation Committee. The HR Head will be the Convenor. The Heads of Departments will be the Members in respect of population of the respective Department. Moderation Committee The appraisal report having been completed at the level of heads of departments / units will be sent to HR for the requisite analysis regarding the desired and actual normal distribution pattern of the appraisal ratings. The ratings, as finalized in the deliberations of the Moderation committee, will be final out put of the PMS, which will be taken to be the final PMS ratings. 8.0 Timelines PMS 2010-11 Activity Completion By Replication of the individual / 31st March, 2011 functional scorecard to the PMS Entry of Final Marks against each KRA Entry of the Competency Rating for each Competency and the Final Competency Rating would

7.5

Sl. No. a)

b) c) d) e)

f)

Form and sign off with Reporting Officer. Self Appraisal by the Appraisee. Appraisal by the Reporting Officer. Completion up to the level of HOD. Completion up to the level of Plant Manager / Chief of Infrastructure / Team Leaders at Corporate Office as per normalisation percentages. Finalisation by the Moderation Committee.

Project report on PMS at OPGC

4th April, 2011 7th April, 2011 11th April, 2011 15th April, 2011

19th 2011

20th

April,

PMS 2011-12 Sl. No. a) b) Activity Joint goal setting and finalisation of scorecard. Mutual sign off between Appraisee & Appraiser in the PMS Form and forwarding of self copy to HR. Mid year Review. Finalisation and Moderation Completion By 20th April, 2011 30th April, 2011

c) d)

15th 30th September, 2011 1st 15th April, 2012

COMPONENTS OF PERFORMANCE APPRAISAL

1. Identification of key performance areas (KPAs): Performance appraisal should not take place in isolation. It has to be appraised against certain function and objectives that have been agreed to be appraised against certain function and objectives that have to be agreed by the employees and his reporting officer. A good way of starting this may be for every employee to sit with his reporting officer a year in advance and identify the areas of his performance which are considered to be very important for his role. After identifying such key function areas, it is necessary for both, the employee and his reporting officer, to have an understanding of the level of peroformance expected, nature of performance expected, quality of performance expected, time in which the tasks are expected to be complete, etc. this is possible only through an intense dialogue between the officer concerned and his reporting officer. Unless such expectations are

shared, the final appraisal may be more a reflection of the appraisers actual performance in the job. 2. Setting of goals or objectives (under each KPA) every year for the next year : In order to have clear understanding of the expectations, it is useful to set goals or objectives under each KPA. These cover a variety of roles. Quote often there may be jobs which offer very little scope for quantification. However, in each case qualitative or time bound objectives could be set. A good performance should take into consideration how well an individual has performed his role rather than what results he has achieved. This is so because in an organization achievement of results is generally the task of not a single individual but of a group of individuals. The individual should not be appraised for not achieving the results, which depend upon several other factors outside his control. The individual should be assessed for his effectiveness if performing whatever functions given to him. 3. Identification of behavioral dimensions that are critical for managerial effectiveness : A good performance appraisal system should also have a set of behavioral dimensions that are critical for managerial effectiveness. These dimensions should be desirable for performing more and more high managerial jobs and universally applicable in the organization. These qualities can be identified through a good research programmed. At present, at least four qualities are likely to meet these criteria. They include creativity, initiative, and contribution to team spirit and to the development of subordinates. Periodic review on these qualities through an appraisal system helps managers to increasingly develop themselves in relation to these qualities. Thus this is conducive for managerial development. 4. Periodic (preferably annual) review of performance on objectives and behavioral dimension a rating scale: ratings on performance and behavior are necessary in any appraisal system to generate data. Such ratings also form a basis for discussions and exchange of expectations. Some experts propagate the idea if using the category system of assessment. While some use categories like outstanding performance, good performance, average performance, below average etc.

Project report on PMS at OPGC

Project report on PMS at OPGC

ORISSA POWER GENERATION CORPORATION LIMITED

EMPLOYEE PERSONAL PROFILE
Employee No. Name: Designation: Grade: Department / Function: Location: Qualifications: Date of Joining: Mr. ABCD Manager E-4 Operations ITPS B.Sc. Engg. 19-May-93

Project report on PMS at OPGC

CAREER RECORD AT OPGC: Promoted to E3 E4 1.12.99 29.5.2005

on date

ROLE SUMMARY

Responsible for overall supervision of plant for safe, efficient and upto date conditions

KEY RESPONSIBILITIES

1 2 3 4 5 6 7 8 9

Responsible for smooth running of 2X210MW with best possible PLF in a shift and day to day activities. Responsible fior co-ordinating with CHP, WTP, MGR, AHP during day to day plant operation. Responsible for maintaining total plant and aux. during non working hours of the whole plant i.e 05.00 P.M to next day 08.00 AM & Holidays, during the available working shift. Scheduling the declared generation and coordinating with the SLDC for maintaining to the schedule. Taking leading role in case of plant emergencies. Responsible for informing to head operation , Sr Executives & other maintainance Engineer for attending defects during plant rmergencies. Responsible for preparing and issuing safety documents for maintenance job on the plant. Attending morning meeting and appraising the operational activities and problems. Working as a alternate member of T & Q at ITPS as an AMEON(Asia Middle East Operating network) working group members.

Project report on PMS at OPGC

10 11 12 13 14 15 16 17 Manpower planning in main plant area during a shift. Taking part in next day job planning with the helf of maintenance teams and Trip analysis etc. Guide control room engineers and field operators in performing their duties. Review the plant critical operating parameters and bring the changes in trends as required. Looking after the safety aspects of main plant area. Play the roll of incident controller in odd hours in case of emergencies. Responsibility of preparing initial trip reports and daily morning generation reports. Responsibility of general management of the shift.

Individual Scorecard
Calibration of the Rating Scale Performance Measure Unit Weightag e Facto r (x) 1 2 3 (Target ) 4

Individual Score:
5 Actual Achievemen t Ratin g on Scale of 5

2.51
Weighted Score (Weightage X Rating)

% deviations from the scheduled generation plan Plant availability factor Net Capacity Factor Plant Heat Rate Specific Oil Consumption Specific DM Water Make up % of Auxillary Power Consumption

15%

0.5

10

7.5

2.5

3.80

0.570

% % Kcal / Kwh ml / kwh % %

15% 15% 10% 10% 5% 5%

0.01 0.01 0.05 0.2 0.1 0.05

90.16 86.24 2695 0.462 1.08 11.25 3

91.08 87.12 2572.5 0.396 0.99 10.741 5

92 88 2450 0.33 0.9 10.23

92.92 88.88 2327. 5 0.264 0.81 9.718 5

93.8 4 89.7 6 2205 0.19 8 0.72 9.20 7

93 89 2320 0.33 0.85 10

4.09 4.14 4.06 3.00 3.56 3.45

0.613 0.620 0.406 0.300 0.178 0.172

Number of trippings due to operational faults Number of LDO, Hydrogen or boiler explosion emergencies Number of LTA Days Number of near misses reported

Project report on PMS at OPGC

Numbe r 10% 0.1 5 4 3 2 1 2 4.00 0.400

Numbe r

5%

0.1

4.00

0.200

Days Numbe r

5% 5%

0.1 0.2

4 24

3 32

2 40

1 48

0 56

0.5 41

4.50 3.13

0.225 0.156

COMPETENCY MAPPING
Desired Level: Executing & Applying Competency Theme Description - Listens attentively to others, seeking to understand their perspective - Displays commitment to team goals & prioritizes group interest - Shares all relevant or useful information and co-operates with other team members - Appreciates the relevance and criticality of stakeholders/partners and proactively builds individual relationships with them - Understands partners needs and collaborates effectively with partners - Displays high levels of initiative and energy while performing own role - Helps sustain high levels of initiative in team even when asked to contribute beyond his own area of work - Identifies and tries to overcome obstacles in meeting the desired objective , encourages others to do the same -Displays accountability & ownership for own work and helps create high levels of ownership in team - Establishes a course of action for self to accomplish a specific goal and Is able to establish correct priority - Plans activities for self and the team with an aim of leveraging synergies & avoiding overlaps. - Estimates and allocates time and given resources based on plan. - Adheres to systems and ensures process adherence in team output - Makes suggestions for improvement of systems and processes Score

Working with others Teamwork and Partnership Management Partnership Management

Initiative Achievement Orientation Accountability and drive for results Systematic Planning and Process Focus

Operational Excellence

Process Focus

Measuring & Monitoring Performance People Management Inspiring & Motivating Others

- Defines team goals and periodically reviews performance against laid out measures - Makes mid course corrections in action/approach - Understands strengths and development areas of others - Provides balanced feedback for development purposes - Creates learning opportunities to help them improve performance - recognizes achievements of other team members rather than seeking individual credit

Project report on PMS at OPGC

Analysis & Decision Making

Analysis

- Breaks the problem into parts while attempting to identify issues - Analyzes and identifies key issues and establishes cause and effect relationships - Uses the data available (both quantitative as well as qualitative) while doing the analysis - Uses a logical and rational thinking process and makes fact based decisions -Takes ownership for decisions in his own area - Understands market events and other environmental triggers that impact own function/ team, and drives external orientation

Decision Making Business Awareness Business Orientation

ORISSA POWER GENERATION CORPORATION LIMITED

EMPLOYEE PERSONAL PROFILE
Employee No. Name: Designation: Grade: Department / Function: Location: Qualifications: Date of Joining: MR EFGH DGM E-6 O&M ITPS B.Sc. Engg. 10-Mar-93

Project report on PMS at OPGC

CAREER RECORD AT OPGC: Promoted to E4 E5 E6 1.12.97 20.5.2005 24.6.2008 on date

ROLE SUMMARY

Overall responsibility of plant operation & Maintenance. Manager of factory under Factories Act and responsible for the safety of factory.

2
1 2 3

KEY RESPONSIBILITIES
Responsible for deciding policy matters. Responsible for plant safety and people welfare as per Factories Act and answerable to statutory authority, Factory Directorate, Orissa. Responsible for efficient operation of plant for achieving maximum PLF and target.

4 5 6 7 8 9 10 11 12 13 14 15 16 17

Responsible for overall maint. of plant like periodic, preventive, predictive and annual overhauling Responsible for performance monitoring of all equipments of the plant and improving the efficiency. Responsible for optimisation of operation and maintenance cost. Responsible for overall safety of the plant ,implementing OPGC safety rules and achieving zero accident. Responsible for implementing fire safety in plant. Responsible for overall compliance with statutory authority like Directorate of factory & Boiler , Electrical inspector , explosive Directorate. Responsible forobtaining and renewing Factory licence, Boiler Licence, Explossive Licence etc. Responsible for approving all modification and new construction inside plant from statutory authority as per factories act Responsible for Daily monitoring & yearly reporting of plant performance etc to internal authorities. Responsible for coordination with GRIDCO & CEA as and required. Responsible for liasining with state and central statutory authorities as and when required Responsible for manpower planning and their overall development. Responsible for identifying & arranging need based training programme for all employees. Helping others to achieve the goal.

Project report on PMS at OPGC

Project report on PMS at OPGC

COMPETENCY MAPPING
Desired Level: Shaping

Project report on PMS at OPGC

Competency Theme Working with others Teamwork and Partnership Management Description - Builds a climate of trust and mutual respect.-Motivates and effectively resolves issues that inhibit team behavior - Creates and institutionalizes processes that foster team work in the organization. - Identifies critical success factors & potential conflicts in the partnership for the organization - Is able to manage conflicts and critical relationships in the partnership for the organization - Creates a culture of high initiative across the organization, by hiring rewarding and promoting people with this attribute - Actively looks for opportunities where his contribution could help and encourages others to do the same - Drives high performance standards by setting stretch goals for team ensuring people not only meet but exceed them - Drives accountability and ownership across the organization, by institutionalizing systems and processes for performance management, reward and recognition, business planning and review. - Defines and communicates specific goals, deliverables and timelines for sub groups. - Establishes planning and review processes in the organization, reviews execution and makes mid course correction in plans if necessary. - Leverages organization resources and tracks resource utilization to ensure efficiency. - Drives process orientation and flawless execution with focus on quality and cost aspects. -Builds bestpractice orientation by establishing systems and mechanisms to benchmark work against best in class players. - Establishes appropriate stretch goals, and performance measures - Reviews performance against success measures and drives performance by maintaining balance between applying pressure and motivation - Has an insightful view of individual strengths and development needs and uses these to achieve business results - Proactively coaches and develops others by addressing development needs with specific development recommendations - Proactively makes investment in processes and decisions that enhance capability - Constantly recognizes good performance and encourages others - Sees the bigger pictureand integrates business understanding by drawing logical inferences which enable accurate short term and long term forecasting - Is able to forecast multiple scenarios, anticipate opportunities & problems based on a scenario - Analyses and select appropriate plans when more than one option exist - Lays the overall framework for decision making; takes strategic, long-term decisions having far reaching impact- Uses sound judgment and understanding of financial/economic considerations - Displays in-depth knowledge of the external environment, in own ability to predict challenges & opportunities that the business may face in the long run Score

Partnership Management

Initiative Achievement Orientation Accountability and drive for results

Operational Excellence

Systematic Planning and Process Focus

Process Focus

Measuring & Monitoring Performance

People Management Inspiring & Motivating Others

Analysis Analysis & Decision Making Decision Making Business Awareness Business Orientation

Performance Msanagement system survey with Employees OPGC, Bhubaneswar

Project report on PMS at OPGC

1)

Status of your current performance management system.

A major group of employees are satisfied with the current performance management system

2)

Is Performance appraisal system is a motivating factor for you?

A group of employees feel that the current performance management system is a motivating factor at the same time that number of employees does not do that.

3)

Whether the performance appraisal system ensuring better communication between boss &subordinate?

Project report on PMS at OPGC

A major group of employees are satisfied with the current performance management system ensuring better communication between boss & subordinate.

4)

Whether performance appraisal system helps in contribution of future goals of employees?

A major group of employees are satisfied because the PMS contributing of future goals of employees.

5)

Whether performance appraisal system is more effective system to evaluate the employees than the old CCR system?

Project report on PMS at OPGC

A major group of employees are satisfied with that the current performance management system is more effective system to evaluate the employees than the old CCR system.

6)

Are you getting benefited with the half yearly review process adopted by OPGC?

A major group of employees are satisfied with the half yearly review process adopted by OPGC for PMS.

Project report on PMS at OPGC

7) Are you satisfied with the 5-Point rating scale is used in performance appraisal system in OPGC?

Yes 70% No 30%

A major group of employees are satisfied with the 5-Point rating scale is used in performance management system in OPGC

8) Whether performance appraisal system helps the you to know about your strength & weaknesses?

A major group of employees agree with the performance appraisal system helps them to know about their strength & weaknesses.

Project report on PMS at OPGC

9)Whether performance appraisal system is making employees more conscious regarding their duties & responsibilities in the job?

A major group of employees agree with the performance management system is making employees more conscious regarding their duties & responsibilities in the job

10)

Do you think, there is some bias exists in the appraisal system ?

A major group of employees think, there is some bias exists in the PMS system of OPGC, Bhubaneswar.

Project report on PMS at OPGC

CONCLUSIONS AND SUGGESTIONS

Performance appraisal should not be perceived just as a regular activity but its importance should be recognized and communicated down the line to all the employees. There should be a review of job analysis, job design and work environment based on the performance appraisal. It should bring more clarity to the goal and vision of the organisation. It should provide more empowerment to the employees. New methods of appraisal should be adopted so that both appraiser and the appraisee take interest in the appraisal process. The employees who have excellent performance should be used as a mentor for other employees which would motivate others to perform better. Employees should be given feedback regarding their appraisal. This will help them to improve on their weak areas. Financial and non-financial incentives should be linked to the annual appraisal system so that employees would be motivated to perform better. New mechanisms should be evolved to reduce the time factor involved in the procedure of appraisal. Introducing online-appraisal can do this. The frequency of training program for the appraiser should be increased and these sessions should be made interactive. The awareness sessions for the employees/appraisees should be made more interactive and the views and opinion of the appraisees regarding appraisal should be given due consideration. Assistance should be sought from specialists for framing a proper appraisal system that suits the organisation climate. Constant monitoring of the appraisal system should be done through discussions, suggestions, interactions. Combining the different methods of appraisal can minimize the element of biasness in an appraisal. Like the Rating method combined with assessment center method would give an evidence of poor/unfavorable or outstanding behaviour of the appraisee, if any. Use of modern appraisal techniques like 360 o appraisal, assessment centers which are more effective. More transparency should be brought about in the appraisal system.

The appraisal system should cover all employees in the organisation both white collar and blue-collar jobs. Recognizing the good performers i.e., appraisees who have accomplished the targets for the year can help in getting more commitment from the employees. Information regarding the performance of the employees should be kept in proper manner. Some of the performance appraisals should be conducted by the top management so that they can understand the employees and their needs, behaviour better and to find out the loopholes. Performance appraisal should be effectively link to the performance management system of the organisation. Our companies still follow the traditional methods of appraisal that should be transformed into the modern one.

Project report on PMS at OPGC

CONCLUSION
Employees are satisfied with the performance appraisal system of OPGC as it has replaced the old CCR system which was not giving any feedback to its employees. But still employees have described the current performance appraisal system as semi-transparent. So it should work on to make fully transparent. It should appraise its employees quarterly or half-yearly basis without giving any prior notice to them so that the actual performance of employees can be identified. Employees have a strong perception that performance appraisal system in OPGC is a tool for promotion only. Some respondents criticized that there is no promotional facility for non-cadre employee in OPGC. The organization should motivate those employees by giving them special rewards (e.g. by sending the employee on holiday tour or special salary package) even when it cannot promote them to higher posts.