CHAPTER-1

INTRODUCTION to HR :
1
The human resources of an organization consist of all people who perform its
activities.
Human resource management (HR! is concerne" with the personnel policies an"
managerial practices an" s#stems that influence the wor$force. %n &roa"er terms' all
"ecisions that affect the wor$force of the organization concern the HR function.

The activities involve" in HR function are pervasive throughout the organization.
(ine managers' t#picall# spen" more than )* percent of their time for human resource
activities such hiring' evaluating' "isciplining' an" sche"uling emplo#ees. Human
resource management specialists in the HR "epartment help organizations with all
activities relate" to staffing an" maintaining an effective wor$force. a+or HR
responsi&ilities inclu"e wor$ "esign an" +o& anal#sis' training an" "evelopment'
recruiting' compensation' team-&uil"ing' performance management an" appraisal'
wor$er health an" safet# issues' as well as i"entif#ing or "eveloping vali" metho"s for
selecting staff. HR "epartment provi"es the tools' "ata an" processes that are use"
&# line managers in their human resource management component of their +o&.
Appraisal of one in"ivi"ual &# another in"ivi"ual is a continuous process an" it is
,atural phenomenon in human &eings. This is constantl# "one' consciousl# or
unconsciousl# in our "a#-to-"a# interaction' either in famil# life or in a social setting
or in an organization for that matter. -hile the in"ivi"ual or a group uses appraisal in
its own fashion "epen"ing upon the nee" of the situation' in an organization it
&ecomes necessar# to a"opt a formal metho"olog# of appraisal s#stem &ecause of the
re.uirement of measuring the performance for consi"ering suita&le rewar" or
punishment or for assessing the potential of a person to increase the responsi&ilities.
%n short' there is a great re.uirement for assessing the efficienc# to gear up the
pro"uctivit# of the wor$ /force.

,EE0 12R THE 3T4056
7
%n the %,0%A, pharmaceutical in"ustries the HR "epartment pla#s a important role in
giving the appraisal the performance of the emplo#ee in the organization .That
performance relates to &oth &ehavioral an" functional aspects. These all aspects
relates to the stu"# on performance appraisal in R.%.,.( steel plant.
The purpose of stu"# is to $now the emplo#ee opinions a&out the perfect
(i.e. performance appraisal! in the organization.
To $now the emplo#ee grievances.
To $now su&or"inates cooperation to emplo#ee in their wor$
To $now a&out the "ecisions regar"ing the salar# fi8ation' confirmation'
promotion' transfer' an" "emotion which are ta$ing accor"ing to emplo#ee
performance
29:ECT%;E36
The fallowing are the specific o&+ective of the present stu"#. To stu"# the
performance appraisal s#stem histor# an" their activities in ;3P.
To stu"# an" accesses the e8ecutive performance s#stem an"
effectiveness.
To anal#ze the "rive towar"s .ualit# that is integrate" into
e8ecutive performance appraisal.
To stu"#' i"entif# an" suggest measures to improve effectiveness
specificall# from .ualit# perspective.
To provi"e the &asis for "etermination of merit' efficienc# an"
suita&ilit# for the purpose of the promotion.
SCOPE OF THE STUDY:To $now the function of the organization how the# are
reall# functioning how the policies are ma"e an" implemente" an" conve#e" to the
emplo#ees' to $now these things visite" several "epartments of ;3P. Those
"epartments are6
Human resource "evelopment "epartment
Personnel management "epartment
Recruitment "epartment
ar$eting "epartment
<
(egal "epartment etc.
METHODOLOGY:
After the o&+ective of the stu"# has &een clearl# starte" The ne8t step in
formal research pro+ect is to "etermine the source form which the "ata is re.uire" to
&e collecte" .The "ata collection is an interesting aspect of the stu"# .1or the purpose
of achieving .
The "ata information consist of 7 t#pes of "ata 6
1. Primar# "ata
7. 3econ"ar# "ata
Primar# "ata6
The primar# "ata are those' which are collecte" freshl# an" for the
first time for the emplo#ees "irectl#. 3ize of the sample is =*.
%t is collecte" through the following metho"s
a!. QUESTIONNAIRE:
A structure of .uestionnaire prepare" an" "istri&ute" among the
emplo#ees
&!. %nterview6
Personal interviews an" interaction with the emplo#ees an" the la&or.
C!. 293ER;AT%2,6
9# o&serving the wor$ing environment
3EC2,0AR5 0ATA6
The secon"ar# "ata are those which have alrea"# have &een collecte" &#
some one are else which have &een passe" through statistical process .3ources of
secon"ar# "ata can &e categorize" in to 7 &roa" categories name" pu&lishe" an" un
pu&lishe" statistics various sources are availa&le namel# 'central an" state government
pu&lications 'foreign pu&lications' technical tra"e +ournals' &oo$s' magazines etc.' an"
collection from various files 'recor"s.

Questionnaire:
>
The .uestionnaire was personall# a"ministrate" with respon"ent in ;3P it
too$ nearl# 7* minutes for each respon"ent to fill the .uestionnaire. The responses
was given &# the respon"ents were ta&ulate" an" a score sheet is prepare".
LIMITATIONS:
The stu"# is how ever su&+ecte" to certain limitation.
The time is a ma+or limitation. The whole stu"# was con"ucte" with in
a perio" of 1 month.
The stu"# "oes not cover non-e8ecutive some e8ecutive ca"re an"
chair man an" managing "irector. The stu"# conifers itself onl# to
assistant managers to general managers.
3tu"# is .ualit# perspective has onl# &een .ualitative the information
gathere" in this regar" is mostl# through information "iscussion.
2nl# the e8isting s#stem is stu"ies an" no attempt has &een ma"e to
i"entif# an" complete new an" "#namic performance s#stem "ue to
this constraints.

)




CHAPTER-7
INTRODUCTION TO STEEL INDUSTRY IN INDIA

=
INTRODUCTION TO STEEL INDUSTRY IN INDIA
STEEL INDUSTRY:
3teel in"ustr# is the &ac$ &one of all in"ustrial commercial activities.
Realizing these countries planners have &een formulating an" up"ating annual plans
for pro"uction of iron an" steel. %n this conte8t a num&er of steel plants were setup.
The steel in"ustr# pla#s a vital role in the growth of nation?s econom#.
3teel is such a versatile commo"it# that ever# o&+ect we see in our "a# to "a#
life has use" steel either "irectl# or in"irectl# in its pro"uct. To mention a few it is
use" for such small items as nails' pins' nee"les etc.' agriculture implements &oilers'
ship fa&rication' railwa# materials' automo&ile parts' etc. to have machine structure.
The great investment that has gone into the fun"amental research in iron an"
steel technolog# has helpe" &oth "irectl# an" in"irectl# in man# mo"ern fiel"s of
to"a#?s science an" technolog#. %t woul" have &een ver# painful to imagine the fate of
to"a#?s civilization if steel has not &een there. 3teel is versatile an" in"ispensa&le
item. The versatilit# steel has not &een there. 3teel is versatile an" in"ispensa&le item.
The versatilit# steel can &e trace" mainl# of three reasons.
%t is onl# metallic item' which can &e continentl# an" economicall#
pro"uce"' in large .uantities.
%t has got ver# goo" strength couple" with "ensit# an" mallea&ilit#.
%ts properties can &e change" over a wi"e range. %t allo#s easil# with man#
of the common element.
@
INDIAS STEEL SCENARIO
%n"ian steel in"ustr# has alwa#s remaine" isolate" an" protecte" &#
government' where the steel in"ustr# was never e8pecte" to generate profit from
&usiness' &ut was e8pecte" to provi"e emplo#ment to the unemplo#e". Presentl# %n"ia
is operating with open-hearth furnaces. The e8isting e.uipment' energ# an" la&or in
%n"ian steel in"ustr# are much low than "evelope" countries.
%n"ian steel in"ustr# generates a significant amount of waste materials' which
can cause environmental pro&lems. The four aspects of A-aste anagementB
namel#- resi"ue reprocess' rec#cle an" recover# "o not hol" much groun" in the
%n"ian steel in"ustr#. The %n"ian companies cannot spen" more for pollution control.
The energ# consumption per tone is )*-1**C higher than that of the international
norms.
The %n"ian steel in"ustries have "evelope" a &it in the recent #ears. The
pro"uction is growing on properl#. an# techni.ues are &eing implemente" in the
steel in"ustries. The countr#?s aim is to sell .ualit# steel. The government is also
helping the steel in"ustries in this &asis. The apparent consumption of steel is shown
&elow.
The "evelopment of steel in"ustr# in %n"ia shoul" &e viewe" in con+unction
with the t#pe an" s#stem of government that ha" &een ruling the countr#. The
pro"uction of steel in significant .ualit# starte" after 1DD*. The growth of steel
in"ustr# can &e convenientl# starte" &# "ivi"ing the perio" into pre an" post
in"epen"ent era. %n the perio" of pre in"epen"ence steel pro"uction was 1.) million
tones per #ear' which was raise" to D.* million tones of target &# the seventies. This is
the present of the &ol" steps ta$en &# the government to "evelop this sector.
!ORLDS DEMAND FOR STEEL:
The total "eman" for steel in worl" is e8pecte" to grow at an annual rate of
1.@C &etween 1D<) an" 7*** A.0. as per the stu"# concerne" &# china economists.
Accor"ing to their estimation total "eman" in a"vance" in"ustrial countries on a
whole is e8pecte" to grow at *.=C annual rate following a 7.7C rate &etween 1D@> to
1DE>. steel "eman" is less "evelope" countries on a whole is e8pecte" to grow at a
E
).)C annual rate up to 7*** following a <.1 annual growth rate &etween 1E>-1DD>.
-ithin the controlling plant econom# the Eastern Europe erstwhile 433R region ma#
have *.<C annual steel "eman" growth. 3teel "eman" in china' ,orth Forea region
woul" grow at >.* annual rates up to the en" of this centur# at a @.)C per annual
growth "uring 1D@>-1DE*.
HIGHLIGHTS OF PRESENT STEEL SCENARIO:
The worl" steel shows a low growth "eman".
There is a threat to steel in"ustr# from competitive pro"ucts li$e plastics'
aluminum' etc.
0evelope" countries slowl# re"uce" the pro"uction of steel.
0eveloping countries li$e China are planning to pro"uce steel as much
large .uantit# then of present output of E* t. per annum.
%n"ia consciousl# an" strategicall# "eci"es to invest into steel pro"uction.
Preference is given to superior .ualit# pro"ucts an" high value item
pro"uction.
Customer oriente" approach in view of pro"uct oriente" approach.
Emergence of new technolog# li$e scraps preheating.
GRO!TH OF STEEL INDUSTRY6
The growth in a chronological or"er is "epicte" &elow6
S"No YEAR GRO!TH
# #$%&
2sier arshall heathler constructe" the first manufacturing plant
at port-motor in a"ras presi"enc#.
' #$()
:ames ers$in foun"e" the 9engal frame wor$s.
% #$**
:amshe"i+i TATA initiate" the scheme for an integrate" steel
D
plant.
) #*&+
1ormation of T%3C2.
, #*##
T%3C2 starte" pro"uction.
+ #*#$
T%3C2 was foun"e".
( #*)&
1ormation of #sore iron an" steel initiate" at 9ha"ravathi in
Farnata$a.
$ #*,#-#*,+
1irst five-#ear plan / The Hin"ustan steel limite" (H3(! was &orn
in the #ear 1D)> with "ecision of setting up three plants each with
1 million tones in got steel per #ear at Rour$ela' 9hilai' 0urgapur.
T%3C2 starte" its e8pansion program.
* #*,+-#*+#
3econ" five-#ear plan / A &ol" "ecision was ta$en up to increase
the ingot steel output in %n"ia to = million tones per #ear an" its
pro"uction at Rour$ela' 9hilai an" 0urgapur steel plant starte".
#& #*+#-#*++ Thir" five-#ear plan / 0uring the plan the three steel plants un"er
H3(' T%3C2 G T%3C2 were e8pan"e"H
## #*+) 9o$aro steel plant came into e8iatence.
#' #*++-#*+* Recession perio" / Till the e8pansion programmes were activel#
e8iste" "uring this perio".
#% #*+*-#*() 1ourth five-#ear plan / 3alem steel plant starte". (icenses were
given for setting up of man# mini steel plants an" re-rolling mills
government of %n"ia. Plants in south are each in ;isa$hapatanam
an" Farnata$a. 3A%( was forme" "uring this perio" on 7>
th
:anuar# 1D@<
#) #*()-#*(*
1ifth five-#ear plan / The i"ea of setting up fifth integrate" steel
plant' the first re-&ase" plant at ;isa$hapatanam too$ a "efinite
shape. At the en" of the fifth five #ear plan the totale" installe"
capacit# from si8 integrate" plants was up to 1*.= million tons.
#, #*(*-#*$&
Annual plan. The Erstwhile soviet union agree" to help in setting
up the ;isa$hapatanam steel plant.
#+ #*$&-#*$,
3i8th five-#ear plan / -or$ on ;isa$hapatanam steel plant starte"
with a &ig &ang an" top priorit# was accor"e" to start the plant.
3chemes for mo"ernization of 9hilai steel plant' Rour$ela steel
plant' 0urgapur steel plant an" T%3C2 were initiate". Capacit# at
the en" of si8th five-#ear plan from si8 integrate" plants stoo"
11.)* million tones.
#( #*$,-#**#
3eventh five-#ear plan / E8pansion wor$s at 9hilai an" 9o$aro
steel plant complete". Progress of ;isa$hapatanam steel plant
pic$e" up an" the nationalize" concept has &een intro"uce" to
commission the plant with <* T li.ui" steel capacities &# 1DD*.
1*
#$ #**'-#**( Eigth five-#ear plan / The visa$hapatanam steel plant was
commissione" in 1DD7. The cost of plant has &ecome aroun" E@))
crores. ;isa$hapatanam steel plant starte" the pro"uction an"
mo"ernization of other steel plants is also "ul# engage".
#* #**(-'&&' ,inth five-#ear plan / Restructuring of ;isa$hapatanam steel
plant an" other pu&lic sector un"erta$ings.
'& '&&'-'&&( Tenth five #ear plan / 3tep in %n"ustr# registration growth rate
D.DC ;isa$haptnam plant high regime targets achieve" &est of
them
'# '&&(-'&#'
Eleventh five #ear plan / cost of schemes pro+ect orginal
approve" &# government of %n"ia in Rs.D')=D.1E Crores
STEEL PLANTS !ITH FOREIGN COLLO.ORATIONS
S"No P/ant Co//a0oration Ca1acit2 o3
Finis4e5 Stee/ Pro5ucts
1 Rour$ela 3teel Plant -est Ierman#
7 9hilai 3teel Plant Erstwhile 433R
< 0urgapur 3teel Plant 9ritan
> 9o$aro 3teel Plant Erstwhile 433R
S No P/ant Co//a0oration Ca1acit2 o3
Finis4e5 Stee/ Pro5ucts
Annua/
Pro5uction
1 Rour$ela 3teel
Plant
-est Ierman# @'7*'*** Tones
7 9hilai 3teel Plant Erstwhile 433R @'@*'*** Tones
< 0urgapur 3teel
Plant
9ritain E'**'*** Tones
11
PRO.LEMS OF STEEL PLANT INDUSTRY
LAC6 OF RA! MATERIALS:
,on-availa&ilit# of goo" .ualit# raw material is another pro&lem face" &# iron
an" steel in"ustr#. The mo"ern giant &last furnace nee"s high-gra"e iron ore an" goo"
metallurgical coal.
1urther the in"ustr# is una&le to get goo" .ualit# co$e an" manganese is
which the principal raw materials ne8t to iron ore are unfortunatel# most of our
resources of manganese ore are of poor .ualit# &esi"es the non availa&ilit# of goo"
.ualit# raw material' regular supplies of raw materials are ver# much han"icappe"
"ue to the a&sence of goo" transport facilities. Another pro&lem face" &# the steel
in"ustr# relate" to the "ifficult# in getting zinc supplies for the continuous
galvanizing line.
LAC6 OF TECHNICAL PRO.LEMS
9hilai ha" to e8ecute or"ers for shipment of rails to %ran' 3outh Forea an"
ala#sia.
9ecause of technical limitations' Rour$ela plant is una&le to su&stitute
aluminum of zinc for the pro"uction of galvanize" sheet apart from source internal
technical pro&lemsJ our technolog# in the fiel" of steel pro"uction is not a "evelope"
one when compare" to other a"vance" countries.
GO7ERNMENT CONTROL AND PRICING POLICY
3ince 1D>1' %n"ia steel an" iron in"ustr# was almost
completel# state regulate". 9oth prices an" "istri&ution of steel were un"er control of
government. The Iovt. "eci"e" to remove statutor# control over the price an"
"istri&ution of all' &ut a few categories with effect from 1
st
march 7=' 1D=> the Iovt.
supervise the steel an" iron in"ucte" accor"ing to the recommen"ation of Ra+a
committee. 9ut Ra+ committee in fi8ing the steel price "i"n?t regulate the price of raw
materials.
17


CHAPTER-<
7ISA6HAPATNAM STEEL PLANT
1<
7ISA6HAPATNAM STEEL PLANT
-A .RIEF PROFILE
INTRODUCTION:
3teel occupies the foremost place amongst the materials in use to"a# an"
perva"es all wal$s of life. All the $e# "iscoveries of the human genius' for instance'
steam engine' railwa#' means of communication an" connection' auto mo&ile' aero
plane an" computers' are in one wa# or other' fastene" together with steel an" with its
sagacious an" multifarious application. 3teel is versatile material with multitu"e of
useful properties' ma$ing it in"ispensa&le for furthering an" achieving continual
growth of the econom#-&e it construction' manufacturing' infrastructure or
consuma&les. The level of steel consumption has long &een regar"e" as an in"e8 of
in"ustrialization an" economic maturit# attaine" &# a countr#. Feeping in view the
importance of steel' the fallowing integrate" steel plants with foreign colla&orations
were set up in the pu&lic sector in the post-in"epen"ence era.
STEEL PLANT FOREIGN
COLLA.ORATION
1. 0urgapur steel plant 9ritish
7. 9hilai steel plant Erstwhile 433R
<. 9o$aro steel plant Erstwhile 433R
>. Rour$ela steel plant Ierman
9ACFIR24,06 ;isa$hapatnam steel plant
To meet the growing "omestic nee"s of steel' government of %n"ia "eci"e" to
set up an integrate" steel plant at ;isa$hapatnam. An agreement was signe" with
erstwhile 433R in 1D@D for co-operation in setting up <.> t integrate" steel plant at
;isa$hapatnam. The foun"ation stone for the plant was lai" &# the then prime
minister on 7*
th
:an ?@1.
1>
The pro+ect was estimate" to cost Rs. <ED@.7E Crs &ase" on prices as on >
th
.uarter of 1DE1. However' on completion of construction an" commissioning of the
whole plant in 1DD7' the cost escalate" to aroun" E)** Cr. 4nli$e other integrate"
steel plants in %n"ia' ;isa$hapatnam 3teel Plant is one of the most mo"ern steel plants
in the countr#. The plant was "e"icate" to the nation on 1
st
august? 1DD7 &# the Prime
inister' 3ri. P.;.,arasimha Rao.
,ew technolog#' large scale computerization an" automation etc.' are
incorporate" in the plant. To operate the plant at international levels an" attain such
la&or pro"uctivit#' the organizational man power has &een rationalize". The plant has
a capacit# of pro"ucing <.* t of li.ui" steel an" 7.=)= t of salea&le steel.
7SP Tec4no/o82: State-o3-t4e-Art
@m tall co$e oven &atteries with co$e "r# .uenching.
9iggest 9last 1urnaces in the countr#
9ell less top charging s#stem in &last 1urnance.
1**C slag granulation at the 91 cast house.
3uppresse" com&ustion / (0 gas recover# s#stem.
1**C continuous casting of li.ui" steel.
ATemporeB an" A3telmorB cooling process in ( G -R.
E8tensive waste heat recover# s#stems.
Comprehensive pollution control measures.
MA9OR SOURCES OF RA! MATERIALS
%ron ore lumps G fines 9aila"illa' .P
91 (ime 3tone :agga##apeta' A.P
33 (ime 3tone :aisalmer' Ra+asthan
91 0olomite 0u&ai
33 0olomite a"haram' A.P
1)
anganese 2re Chipuripalli' A.P
9oiler Coal Talcher' 2rissa
Co$ing Coal Australia
-ater 3uppl# 5eluru canal' An"hra Pra"esh
Power 3uppl# Captive power plant
MA9OR UNITS AT 7SP
DEPARTMENTS ANNUAL CAPACITY
:;&&& T<
UNITS :%"& MT STAGE<
C2FE 2;E,3 7'7=1 < 9atteries each of =@ ovens an" @
ts height
3%,TER P(A,T )'7)= 7 sinter machines of <17 3.m
grate area each
9(A3T 14R,ACE <'>** 7 1urnaces of <7** cu m volume
each
3TEE( E(T
3H2P
<'*** < (0 Converters each of 1)*
Cum. ;olume an" si8 > stran"
&loom casters
( @1* > 3tan" finishing ill
-R E)* 7 8 1* stan" finishing mill
3 E)* = 3tan" finishing ill
MAIN PRODUCTS OF 7SP
Stee/ Pro5ucts .2 Pro5ucts
Angles ,ut Co$e
9illets Co$e "ust
Channels Coal Tar
9eams Anthracene 2il
3.uares HP ,aphthalene
1=
1lats 9enzene
Roun"s Toulene
Re 9ars K#lene
-ire ro"s -ash 2il
3-2T A,A(53%3 21 THE %,043TR5 6
3TRE,ITH36
1. Availa&ilit# of iron ore an" coal
7. (ow la&our wage rate
<. ature pro"uction &ase
>. A&un"ance of .ualit# man power
). 3trong committe" wor$ force
=. 3uperior &asic steal ma$ing technolog#
@. %mage as Avalue for mone# supplierB
E. Availa&ilit# of lan" an" infrastructural facilities for e8pansion up to
1= t
D. Availa&ilit# of fun"s for investment an" re"emption of preference
e.uit# (Rs.@=E= Cr as on <1.*<.*E!
-EAF,E33E3 6
1. (ow pro"uctivit#
7 .(ow RG0 investment
<. 4nscientific mining
>. High cost of "e&t
). Co$ing coal import "epen"ence
=. %na"e.uate infrastructure
@. (ac$ of higher levels of automation
E. Capital repairs' upgra"ation an" mo"ernization "ue for ma+or
facilities
D. (ac$ of in house or captive raw materials mines resulting in high cost
of raw materials
1@
2PP2RT4,%T%E3 6
1. High to mo"erate rates of economic growth pro+ecte" an" strong
"eman" forecast for steel
7. Irowing "omestic "eman"
<. Consoli"ation
>. 4ne8plore" rural mar$et
). E8ports
THREAT3 6
1. assive e8pansion plan of e8isting competitors
7. Entr# of international pla#ers
<. 0epen"enc# on single supplier for sourcing iron ore
>. 3hift of value chain towar"s raw materials-rising input costs
). China &ecoming net e8porter
=. 0umping &# competitors
;%3%2,6- To &e a continuousl# growing worl"-class compan#.
-e shall6
Harness our growth potential an" sustain profita&le growth.
0eliver high .ualit# an" cost competitive pro"ucts an" &e the first
choice of customers.
To create an inspiring wor$ environment to unleash the creative energ#
of people.
Achieve e8cellence in enterprise management.
9e a respecte" corporate citizen' ensure clean an" green environment
an" "evelop vi&rant communities aroun".
MISSION
To attain 1* million tones li.ui" steel capacit# through technological up
gra"ation' operational efficienc# an" e8pansion' to pro"uce steel at international
stan"ar"s of cost of .ualit#' an" to meet the aspirations of the sta$ehol"ers.
1E
O.9ECTI7ES
Towar"s growth / E8pan" the plant capacit# to@ T &# 7*11-7*17
with the mission to attain 1*.* T capacities in two su&se.uent
phases.
Towar"s profita&ilit# / Achieve net profits from 7**7-7**< with
special emphasis on enhancement of pro"uction of value a""e"
steels an" cost re"uction.
Towar"s emplo#ees / a$e R%,( the emplo#er of choice.
4pgra"e the s$ills an" efficiencies of emplo#ees through training
an" "evelopment an" maintain high levels of motivation an"
satisfaction.
Towar"s customers / Promote &ran"ing of pro"ucts for .ualit# an"
customer preference through customer relations management
Towar"s suppliers / 0evelop a relia&le an" strong supplier &ase
an" ensure effective suppl# chain.
Towar"s .ualit# / Promote .ualit# movement in all functions of
the compan# through .ualit# management s#stem.
Towar"s technolog# up gra"ation an" pro"uctivit# / Continuousl#
upgra"e the technolog# an" practice &enchmar$ing to achieve
international efficienc# levels. A"opt latest "evelopments in
information an" communication technolog#
Towar"s $nowle"ge management / 9ecome a $nowle"ge &ase"
an" $nowle"ge sharing compan#.
Towar"s safet#' environment an" societ# / Continue efforts
towar"s safet# of emplo#ees' conservation of environment an" &e a
goo" corporate citizen.
CORE 7ALUES
Commitment
Customer satisfaction
Continuous improvement
1D
Concern of environment
Creativit# an" innovation
QUALITY POLICY
-e' at ;isa$hapatnam steel plant' are committe" to meet the nee"s an"
e8pectations of our customers an" other intereste" parties. To accomplish this' we will
3uppl# .ualit# goo"s an" services to customers? "elight.
Achieve .ualit# of the pro"ucts &# following s#stematic approach through
planning' "ocumente" proce"ure an" timel# review of .ualit# o&+ectives.
Continuousl# improve the .ualit# of all materials' processes an" pro"ucts.
aintain an ena&ling environment which encourages team wor$ an" active
involvement of all emplo#ees with their involvement.
HR POLICY
-e' at ;isa$hapatnam steel plant' &elieve that our emplo#ees are the most
important resources. To realize the full potential of emplo#ees' the compan# is
committe" to6
Provi"e wor$ environment that ma$es the emplo#ees committe" an"
motivate" for ma8imizing pro"uctivit#.
Esta&lish s#stems for maintaining transparenc#' fairness an" e.ualit#
in "ealing with emplo#ees.
Empower emplo#ees for enhancing commitment' responsi&ilit# an"
accounta&ilit#.
Encourage team wor$' creativit#' innovativeness an" high achievement
orientation.
Provi"e growth an" opportunities for "eveloping s$ill an" $nowle"ge.
Ensure functioning of effective communication channels with
emplo#ees.
HRD POLICY
7*
-e' at ;isa$hapatnam steel plant' are committe" to create an organizational
culture which nurtures emplo#ee?s potential for the prosperit# of the organization. To
accomplish this' we will
%"entif# "evelopment nee"s of the emplo#ees on regular &asis' provi"e the
necessar# training an" continuall# evaluate an" monitor the effectiveness of
training so that the .ualit# of training also upgra"e".
Provi"e inputs to the emplo#ees for "eveloping their attitu"e towar"s wor$
an" for matching their competencies with the organizational re.uirements.
Create an environment of learning an" $nowle"ge sharing &# provi"ing the
means an" facilities an" also access to the relevant information an" literature.
1acilitate the emplo#ees for continuous "evelopment of their $nowle"ge &ase'
s$ills' efficienc#' innovativeness' self-e8pression an" &ehavior so that the#
contri&ute positivel# with commitment for the growth an" prosperit# of the
organization while maintaining a high level of motivation an" satisfaction.
Prepare emplo#ees through appropriate "evelopment programs for ta$ing up
higher responsi&ilities in the organization.
1ulfill social o&ligations &# provi"ing training to the stu"ents of e"ucational
institutions an" to the trainees of other organizations.
MAR6ETING NET!OR6 OF 7ISA6HAPATNAM STEEL PLANT
The pro"ucts are &eing sol" through <) mar$eting centers all over the countr#
with four stoc$ #ar"s at um&ai' Fol$ata' Chennai an" H#"era&a". An" in other
places' consignment agencies have &een contracte".
POLLUTION CONTROL AND EN7IRONMENTAL PROTECTION
Ela&orate measures have &een a"apte" to com&at air an" water pollution in
;isa$hapatnam steel plant. %n or"er to &e eco frien"l# ;isa$hapatnam steel plant has
plante" more than < million trees in area of <) s.uare $ilometers an" incorporate"
various technologies at a cost of Rs.>=* crores an" control measures.
ACHIE7EMENTS AND A!ARDS OF 7SP
The efforts of ;3P have &een recognize" in various forms. 3ome of the ma+or
awar"s receive" &# ;3P are in the area of energ# conservation' environment
71
protection' safet#' Lualit#' Lualit# circles' Ra+&hasha' 24' sports relate" awar"s
an" a num&er of awar"s at the in"ivi"ual level.
3ome of the important awar"s receive" &# ;3P are in"icate" &elow6
%32 D**7 for 33 an" all the "own stream units / a uni.ue "istinction in the
%n"ian steel in"ustr#.
%n"ira Pri#a 0arshini ;rish$a itra Awar"6 1DD7-D<
,ehru emorial ,ational Awar" for Pollution Control. 1DD7-D< G 1DD<-D>.
EEPC E8port E8cellence Awar"6 1DD>-D).
C%% (3outhern Region! Energ# conservation Awar"6 1DD)-D=.
Iol"en Peacoc$ (1
st
Prize! A,ational Lualit# Awar"-D=B%% in the ,ational
Lualit# Competition 1DD=.
3teel inisters Troph# for A9est 3afet# Performance / 1DD=B.
3electe" for A-orl" Lualit# Commitment Awar"- 1DD@B of :H9A,' 3pain.
Iol" star awar" for e8cellent performance in Pro"uctivit#.
4"#og e8cellence gol" me"al awar" for e8cellence in 3teel in"ustr#.
E8cellence awar" for outstan"ing performance in Pro"uctivit# anagement'
Lualit# an" innovation.
%spat 3ura$sha Puras$ar (1irst Prize! for longest Acci"ent free perio" / 1DD1-
D>.
9est (a&or anagement Awar" from Iovernment of AP.
3C2PE Awar" for &est turnaroun" for 7**1.
Environment E8cellence Awar" from Ireentech 1oun"ation for energ#
conservation in 7**7.
9est enterprise awar" from 3C2PE' -%P3 for 7**1-*7' &esi"es.
9est Enterprise Awar" from 3C2PE for surpassing 24 targets / 7**<-*>
%3T0 Awar" for A9est HR PracticesB / 7**7
Prime inisters Troph# for A9est %ntegrate" 3teel PlantB / 7**7-*<
77
A-orl" Lualit# Commitment %nternational 3tar Awar"B in the Iol" categor#
conferre" &# 9usiness %nitiative 0irections' Paris
A2rganizational E8cellence Awar"B for 7**<-*> conferre" &# %,33A,
.a88e5 t4e 3irst stea/ =inisters tro142 31r t4e 2ear '&&+-'&&(
7is4>a?ar=a ras4tri2a 1uras?ar a>ar5s 3or t4e 1er3or=ance 2ear '&&(
3i3t4 ti=e in a ro> in '&&* 3or t4e 0i88est su88estions
Great 1/aces to >or? a>ar5 02 8reat 1/aces to >or? institute an5
econo=ic ti=es @ Mu=0ai in '&#&
G/o0a/ 4u=an researc4 5eAe/o1=ent srinu/e??a/a 3ro= ?an8iri a>ar5 o3
internationa/ 3e5eration o3 trainin8 an5 5eAe/o1=ent or8aniBation @
Lon5on in '&#&
Go/5 a>ar5 3or outstan5in8 ac4eAi=ent in trainin8 eCce//ence 02
8reentec4 3oun5ation @ Ne> De/4i in '&#&
Strate8ic /ea5ers4i1 A>ar5 3or CMD o3 RINL 02 Asian Pu0/ic Hu=an
Resource Mana8e=ent Con8ress@Ne> De/4i in '&#&
RINL 4as 0een 0esto>e5 >it4 seAera/ nationa/ acco/a5es in t4e 2ear '&&,-&+
si8ni3icant a=on8 t4e= 0ein8 :
,ational Energ# Conservation Awar" for the =
th
time in succession.
,ational Awar" for E8cellence in -ater anagement.
%C-A% Awar" for e8cellence in Cost anagement.
;iswa$harma Rashtri#a Puras$ar Awar" ( = out of <7 at the national level!
1APCC% &est %n"ustrial Pro"uctivit# Awar"
%,3AA, ,ational Awar" for 2rganizational E8cellence
9est CE2 Awar"
The a&ove awar"s at local regional an" national level competitions in the area of
.ualit# circles an" suggestion schemes etc.
Total .ualit#' latest technolog#' sophisticate" e.uipment' up to "ate
$nowle"ge' high s$ills' cost consciousness' pro"uction with less cost an" customer
satisfaction have &ecome the hallmar$ of ;3P.
7<

STATISTICAL INFORMATION
PRODUCTION PERFORMANCE :;&&& Tonnes<
S"No Year
Hot Meta/
LiDui5
Stee/
Sa/ea0/e Stee/
1 1DDE-1DDD 7)1* 777) 71D<
7 1DDD-7*** 7D>< 7=)= 7<E7
< 7***-7**1 <1=) 7D*D 7)*@
> 7**1-7**7 <>E) <*E< 7@)@
) 7**7-7**< <D>1 <<)= <*)=
= 7**<-7**> >*)) <)*E <1=D
@ 7**>-7**) <D7* <)=* <1@<
E
7**)-7**= >1)< <=*< <7<@
D '&&+-'&&( 4046 3606 3290
10 2007-2008 3913 3322 3074
7>
11 7**E-7**D <)>= 3145 2701
7)
COMMERCIAL PERFORMANCE :RUPEES IN CRORES<
S"No Year Sa/es Turn
OAer
Do=estic
Sa/es
EC1orts
1 1DDD-7*** <'*<@ 7'=@@ 7D)
7 7***-7**1 <'><= <'177 <77
< 7**1-7**7 >'*E1 <'@1* <@1
> 7**7-7**< )'*)D >'><< =7=
) 7**<-7**> ='1@> )'>*= @=E
= 7**>-7**) E'1E1 @'D<< 7>E
@ 7**)-7**= E'>=D E'*7= >><
E 7**=-7**@ D1<1 E>E@ >7>
D 7**@-7**E 1*><< DE@E )))
1* 7**E-7**D 1*>11 1*<<7 @E
FINANCIAL PERFORMANCE :RUPEES IN CRORES<
S"No Year Gross Mar8in Cas4 Pro3it Net Pro3it
1 1DDE-1DDD 1) - <>= -
7 1DDD-7*** 7)7 -1<* -)=7
< 7***-7**1 )*> 1)< -7D1
> 7**1-7**7 =D* >** -@)
) 7**7-7**< 1*>D D1) )71
7=
= 7**<-7**> 7*@< 7*7> 1)>@
@ 7**>-7**) <7@1 <7=* 7**E
E 7**)-7**= 7<E< 7<)) 17)1
D 7**=-7**@ 7=<< 7)E> 1<=<
1* 7**@-7**E <)1) <>E< 1D><
11 7**E-7**D 7<)= 77=@ 1<<=
EEPANSION PLAN :
Pro5uct
Ca1acit2 :MT<
A55itiona/ Faci/ities enAisa8e5
Present Future
Hot etal >.** =.)* ,ew 91 with <E** Cum Capacit#
Charge 3inter ).7= E.)* ,ew 3inter Plant of >** 3..
area
(i.ui" 3teel <.@* =.<* 33-7 with Two )* Cu
Converters' Two = 3t" 9illet
Casters G 2ne = st" Roun" Caster
3alea&le 3teel <.<> ).@7 --
-ire Roa" 1.*) 1.=) ,ew -R of =**'***T Annum
9ars G
3tructural
1.D) <.>* ,ew 39 of @)*'*** TMAnnum
,ew 3 of @**'*** TMAnnum
3eamless Pipes - *.<* 3eamless Tu&e plant of <**'***
TMAnnum
7@


CHAPTER-)

PERFORMANCE APPRAISAL AT 7ISA6HAPATNAM

CHAPTER F )
PER12RA,CE APPRA%3A(
7E
CONCEPT OF HRD:
HR0 is the process of helping people to ac.uire competencies. %t is an
organize" learning e8perience aime" at matching the organizational nee" for human
resource with the in"ivi"ual nee" for career growth an" "evelopment. %n an
organizational conte8t HR0 is a process &# which the emplo#ees of an organization
are helpe" in a continuous an" planne" wa# to6
Ac.uire or sharpen capa&ilities re.uire to perform various functions
associate" with their present or e8pecte" future roles.
0evelop their general capa&ilities so that ma# &e a&le to "iscover their own
inner potentialities an" e8ploit them to full for their own an" organizational
"evelopment.
To "evelop an organizational culture where superior-su&or"inate
relationship' team wor$ an" colla&oration among "ifferent su&mits are strong
an" contri&ute organizational wealth an"J motivation an" pri"e of the
emplo#ees.
FEATURES OF HRD:
Human Resources 0evelopment is planne" an# s#stematic approach
to the "evelopment of the people.
Human Resource 0evelopment is a continuous process of "eveloping
the competencies' motivation' "#namism an" effectiveness of
emplo#ees.
Human Resource 0evelopment is an inter "isciplinar# concept.
Human Resource 0evelopment has &oth micro an" macro aspects.
Human Resource 0evelopment is a process not merel# a set of
mechanisms an" techni.ues
O.9ECTI7ES OF HRD:
To provi"e a comprehensive frame wor$ an" metho" for the
"evelopment of human resource in an organization.
7D
To generate s#stematic information a&out human resource for
purposes of man power planning' placement' succession planning
an" the li$e.
To increase the capa&ilities of an organization to recruit' retain an"
motivate talente" emplo#ees.
To create a climate that ena&les ever# emplo#ee to "iscover' "evelop
an" use hisMher capa&ilities to a fuller e8tent' in or"er to further &oth
in"ivi"ual an" organizational goals.
NEED FOR HRD:
Competent an" motivate" emplo#ees are essential for
organizational survival growth an" e8cellence. 2ver a perio" of time' an organization
ma# achieve a saturation point in terms of its growth. Even to maintain such a
saturation level of growth emplo#ee competencies nee" to &e sharpene" or "evelope".
Thus' HR0 is nee" &# ever# organization that is intereste" in the fallowing activities.
3ta&ilit# itself.
Irowing
0iversif#ing
Renewing itself to &ecome more effective
%mproving its s#stems an" services
Change an" &ecoming more "#namic
Pla#ing lea"ership roles
FUNCTIONS OF HRD DEPARTMENT:
0evelop a HR philosoph# for the entire organization
Feep inspiring the line managers to have a consistent "esire to learn
an" "evelop.
Constantl# plan an" "esign new metho" an" s#stems of "eveloping
an" strengthening the HR0 climate.
9e aware of the &usinessMother goals of the organization an" "irect all
their HR0 effort to achieve these goals.
<*
onitor effectivel# the implementation of various HR0 su&s#stemM
mechanisms.
-or$ with unions an" associations an" inspire them.
Con"uct human process research' organizational health surve#s an"
renewal e8ercises regularl#.
%nfluence personnel policies &# provi"ing necessar# inputs to the
personnel "epartmentMtop management.
HRD MECHANISMS
The following are the mechanisms of HR0
Performance appraisal
Potential appraisal an" "evelopment
1ee"&ac$ an" performance counseling
Career planning
Training
2rganizational "evelopment
Rewar"s
Emplo#ee welfare an" .ualit# of wor$ life
Human resources information s#stem
Per3or=ance a11raisa/:
Appraisal of performance is wi"e use" in the societ#. Parents their chil"ren'
teacher evaluate their stu"ent an" emplo#ers evaluate their emplo#ee. However'
formal evaluation of emplo#ees is &elieve" to have &een a"opte" for the first time
"uring 1irst -orl" -ar. At the inlan"s of -alter 0ill 3cott the 43 arm# man to man
rating s#stem for evaluating militar# personal. 2nce the emplo#ee has &een selecte"'
traine" the motivate"' he is then apprise" for his performance. Performance appraisal
is the step where the management fin"s out how effective it has &een at hiring an"
placing emplo#ees if an# pro&lems are i"entifie"' steps are ta$en to communicate" to
emplo#ee an" to reme"# them. A performance appraisal is a process of evaluating the
<1
performance appraisal is a process of evaluating the performance an" .ualification of
emplo#ee accor"ing to +o& an" its re.uirement. %t is also $nown as the process of
estimating an" +u"ging the value' e8cellence. Lualities of status of some o&+ect person
or things. %n"ivi"uall# an" collectivel#' it is the part of all other staffing process' li$e
recruitment' selection' placement' etc.
TRENDS IN PERFORMANCE APPRAISAL:
Ite= For=er E=14asis Present Focus
Terminolog# erit-rating Performance appraisal
Purpose 0etermine wage increase'
Promotion' transfer' la# off.
0evelopment of the in"ivi"ual'
improve" +o& performance.
Application 1or ran$ an" file wor$ers 1or managerial an" technical
personnel.
1actors rate" Personal traits Performance' result or
accomplishments.
Techni.ues Rating scales with emphasis
upon scores
utual goal-setting' critical
inci"ents' group appraisal.
CONCEPT OF PERFORMANCE APPRAISAL:
Performance evaluation or performance appraisal is the process of assessing
performance an" progress of emplo#ee or of a group of emplo#ee on a given +o& an"
his potential for future "evelopment. %n concept of all formal proce"ure use" wor$ing
organization to evaluate personalit#' contri&ution an" potential of emplo#ees.
T4e =ain c4aracteristic o3 1er3or=ance a11raisa/ is as 3a//o>s:
1. Performance appraisal is the process consisting of series of steps.
7. %t is the s#stematic e8amination of emplo#ee?s strength an" wea$ness in terms of
+o&s.
<. Performance appraisal is the scientific or o&+ective stu"#. 1ormal proce"ure is
use" in the stu"# the same approach is a"opte" for all +o& hol"ers for that result is
compara&le.
>. %t is an organizing or continuous process where in the valuation is arrange"
perio"icall# accor"ing to a "efinite plan.
). ain process performance appraisal is to secure information necessar# for ma$ing
o&+ective an" correct "ecision on emplo#ees.
<7
O.9ECTI7ES OF PERFORMANCE APPRAISAL:
The main purposes of performance appraisal are as fallows6
1. To provi"e a vali" "ata &ase for personnel "ecision concerning placements' pa#'
promotion' transfer' punishment' etc.
7. To "iagnosis the strength an" wea$ness of in"ivi"uals so as to i"entif# further
training nee"s.
<. To provi"e coaching' counseling' career planning an" motivation to su&or"inates.
>. To "evelop positive' superior-su&or"inate relations an" there &# re"uce
grievances.
). To facilitate research in personnel management.
=. To test the effectiveness of the recruitment' selection' placement an" in"uction
program.
De3inition:
Performance evaluation or performance appraisal is the process
of assessing the performance an" progress of an emplo#ee or of a group of emplo#ees
on a given +o& an" his potential for future "evelopment.
For=a/ De3inition'
A%t is the s#stematic evaluation of the in"ivi"ual with respect to hisMher
performance on the +o& an" hisMher potential for "evelopment.B
According to Flippo,
APerformance Appraisal is the s#stematic' perio"ic an" an impartial rating of
an emplo#ee?s e8cellence in matters pertaining to his present +o& an" his potential for
a &etter +o&.B
C4aracteristics:
1. %t is process of consisting of series of steps
<<
7. %t is the s#stematic e8amination of an emplo#ee?s strengths an" wea$nesses in
terms of his +o&.
<. %t is a scientific an" o&+ective stu"#. 1ormal proce"ures are use" in this stu"#.
>. %t is an ongoing or continuous process there in the evaluations is arrange"
perio"icall# accor"ing to a "efinite plan.
). The main purpose of performance appraisal is to secure information necessar# for
ma$ing o&+ective an" correct "ecisions on emplo#ees.
O0GectiAes:
#" To provi"e fee"&ac$ to emplo#ees so that the# come to $now where the#
stan" an" can improve their +o& performance.
'" To provi"e a vali" "ata &ase for personnel "ecision concerning placements'
pa#' promotions' transfers' punishments' etc'.
%" To "iagnose the strengths an" wea$ness of in"ivi"uals so as to i"entif# further
training nee"s.
)" To provi"e coaching' counseling' career planning an" motivation to
su&or"inates.
," To "evelop positive superior / su&or"inates relations an" there &# re"uce
grievances.
Thus' performance appraisal aims at &oth +u"gmental an" "evelopmental efforts.
Uses:
#" %t provi"es valua&le information for personnel "ecisions such as pa# increases'
promotions' etc.
'" %t helps to +u"ge the effectiveness of recruitment' selection' placement an"
orientation s#stem of the organization.
%" %t is useful in anal#zing training an" "evelopment nee"s.
)" %t can &e use" to improve performance thought appropriate fee"&ac$' wor$ing
an" counseling to emplo#ees.
<>
," %t facilitates Human Resource Planning' career planning an" succession
planning.
A competitive sprit is create" an" emplo#ees are motivate" to improve their
performance.
PR2CE33 21 PER12RA,CE APPRA3%A(


Process o3 Per3or=ance A11raisa/:
Esta&lishing performance stan"ar"s / the appraisal process &egins with the
setting up of criteria to &e use" for appraising the performance of emplo#ees.
The criteria are specifie" with the help of +o& anal#sis' which reveals the
contents of +o&. This criteria shoul" &e clear' o&+ective an" in writing.
Communicating the stan"ar"s / the stan"ar"s are conve#e" to the emplo#ees
an" the evaluators. A fee"&ac$ regar"ing the stan"ar"s shoul" &e o&taine"
from the evaluators an" the emplo#ees for revision or mo"ification.
easuring performance / this re.uires choosing the right techni.ue of
measurement' i"entif#ing the internal an" e8ternal factors influencing
performance an" collecting information on results achieve".
<)
Comparing the actual with the stan"ar"s / actual performance is compare"
with the pre"etermine" performance stan"ar"s. 3uch comparison will reveal
the "eviation' which ma# &e positive or negative.
0iscussing the appraisal / The results of the appraisal are communicate" to
an" "iscusse" with the emplo#ees. Along with the "eviations' the reason
&ehin" them are also anal#ze" an" "iscusse". 3uch "iscussion will ena&le the
emplo#ee to $now his wea$nesses an" strengths.
Ta$ing corrective actions / through mutual "iscussions with emplo#ees' the
step re.uire" to improve performance are i"entifie" an" initiate". Training'
coaching' counseling' etc.' are e8amples of corrective actions that help to
improve performance.
ETH203 21 PER12RA,CE APPRA%3A(
3everal metho"s an" techni.ues are use" for evaluating
emplo#ee performance. These ma# &e classifie" in to Tra"itional an" o"ern
metho"s.
Tra5itiona/ Met4o5s:
Ran?in8 Met4o5: is techni.ue' evaluator assigns relative ran$s to all
emplo#ees in the same wor$ unit "oing the same +o&. Emplo#ees are ran$e"
from the &est to the poorest on the &asis of overall performance. The relative
passion of an emplo#ee is reflecte" in the numerical ran$. %t is one of the
simplest metho"s. %t is time saving an" comparative evaluation techni.ue of
appraisal.
Man-to-=an co=1arison =et4o5: %n this metho"' certain factors are selecte"
for the purpose of anal#sis an" the rater for each factor "esigns a scale. A
scale of man is also create" for each selecte" for each factor. Then each man
to &e rate" is compare" with the man in the scale' an" certain scores are
awar"e" to him. %n other wor"s' a whole man is compare" to a A$e# manB in
respect of one factor at a time. This metho" is use" in +o& evaluation an" is
$nown as the factor comparison metho".
<=
Paire5 co=1arison =et4o5 - This is a mo"ifie" form of man to man ran$ing.
Herein' each emplo#ee is compare" with all others in pairs on at a time. The
num&er of times an emplo#ee is +u"ge" &etter then other "etermines his ran$.
Comparison is ma"e on the &asis of overall performance.
Force5 5istri0ution =et4o5 - %n these techni.ues the rater appraises an
emplo#ee accor"ing to a pre-"etermine" "istri&ution scale. %t is assume" that
it is "esira&le to rate onl# two factors &# this metho" that is :o& performance
an" promota&ilit#. 1or this purpose a five po$ing performance scale is use"
without an# "escriptive statementG emplo#ees are place" &etween two
e8tremes of goo" an" &a" performance.
Gra14ic ratin8 sca/es =et4o5 - %t is a numerical scale in"icating "ifferent
"egrees of a particular train. The rater is given a printe" form for each
emplo#ee to &e rate". The form contains several characteristics relating to the
personalit# an" performance of emplo#ee. %ntelligence' attitu"e' .ualit# of
worl"' lea"ership s$ills +u"gment' etc. are some use characteristics. This
metho" is wi"el# use" as it is eas# to un"erstan". %t allows a statistical
ta&ulation of scores an"' a rea"# comparison of scores among the emplo#ees is
possi&le. The approach is multi-"imensional as several significant "imensions
of the +o& can &e consi"ere" in evaluation.
Critica/ inci5ent =et4o5 - %n this metho" the superior $eeps a written recor"
or critical (either goo" or &a"! events an" how "ifferent emplo#ees &ehave"
"uring such events. The rating of the emplo#ee "epen"s on the positive or the
negative &ehaviors "uring these events. These critical inci"ents are i"entifie"
after through stu"# of the +o& an" "iscussions with the staff. This metho"
helps to avoi" vague impressions an" general remar$s as the rating is &ase" on
actual recor"s of &ehavior.
Grou1 a11raisa/ =et4o5 - 4n"er this metho"' a group of evaluators assess
emplo#ees. This group consists of the imme"iate supervisors of the emplo#ee'
other supervisors having close contact with the emplo#er?s wor$' hea" of the
<@
"epartment an" a personnel e8pert. The group "etermines the stan"ar"s of
performance for the +o&' measures actual performance of an emplo#ee'
anal#sis the causes of poor performance an" offers suggestions for
improvements in future.
Gra5in8 =et4o5 - un"er this metho"' the rater consi"ers certain factors' an"
mar$s them accor"ingl# to a scale. The selecte" factor ma# &e anal#tical
a&ilit#' co-operation' "epen"a&ilit# self-e8pression' +o& $nowle"ge. The# ma#
&e gra"es as NA? / outstan"ing' N9?- ver# goo"'? C?-goo"Maverage' N0?-fair'
NE?- poor. The actual performance of an emplo#ee is then compare" with
these gra"e "efinitions an" he is allotte" the gra"e which &est "escri&e" his
performance.
Force5 c4oice Distri0ution =et4o5 - %n this metho"' the rating elements are
several sets of pair?s phrases or a"+ectives relating to +o& proficienc# or
personal .ualification. The rater is as$e" to in"icate which of the phrases is
most an" least "escriptive of the emplo#ee.
C4ec?/ist =et4o5 - %n this metho"' series of .uestions are presente"
concerning an emplo#ee?s &ehavior. Here rater "oes not evaluate emplo#ee
performanceJ he supplies reports a&out it an" the personnel "epartment "oes
the final rating
Free Essa2 Met4o5 - %n this metho"' the supervisor ma$es a free form' open-
en"e" appraisal of an emplo#ee in his own wor"s an" puts "own his
impression a&out the emplo#ee. The "escription is alwa#s as factual an"
concrete as possi&le.
Fie/5 reAie> =et4o5 - %n this metho"' a trainer emplo#ee from the personnel
"epartment interviews line supervisors to evaluate respective su&or"inates.
The supervisor is re.uire" to give his opinion a&out the progress of his
su&or"inates an" his plan of action in cases re.uiring for consi"eration.
<E
The tra"itional metho"s given a&ove focus on the traits of an emplo#ee
than an his +o& performance ' %n the a&sence of pre"efine" performance
criteria or stan"ar"s ' the personal &ias or su&+ectivit# of the evaluator affects
the ratings . This approach cause" the following responses 6

The ver# nature of the appraisal s#stem le" to criticism.
Criticism e8ercise" a negative impact on goal attainment.
Criticism increase" antagonism an" "efensiveness among emplo#ees
resulting in inferior performance.
anagers generall# are not .ualifie" to assess personalit# traits.
3ome managers "iscourage goo" performances &# over emphasizing
shortcomings an" almost neglecting goo" wor$.
%n or"er to overcome these wea$nesses some new techni.ues of performances
appraisal have &een "evelope".
Mo5ern =et4o5s:
Assess=ents center =et4o5 - An assessments center is a group emplo#ee
"rawn from "ifferent wor$ units. These emplo#ees wor$ together on
assignments similar to the one the# woul" &e han"lings when promote". The
most important feature of the assessments center is +o&-relate" simulations.
Evaluators o&serve an" ran$ the performances of all participants. This group
evaluates all emplo#ees are &oth in"ivi"uall# an" collectivel# &# using
simulations techni.ues li$e role- pla#ing' &usiness games an" in-&as$et
e8ercisesO Emplo#ees are evaluate" on the &asis of +o& relate" characteristics
consi"ere" important for +o& success. The evaluators prepare a summar#
report an" fee"&ac$ is a"ministere" on a face-to-face &asis to the emplo#ees
who as$ for it. An assessment center generall# measures interpersonal s$ills'
communicating a&ilit# to plan an" organize' etc. Assessments centers are not
onl# metho"s of appraisal &ut help to "etermine training an" "evelopment
nee"s of emplo#ees an" provi"e "ata for human resource planning.
Hu=an resource accountin8 =et4o5 - Human resource are a valua&le asset
for an# organization. This asset can &e value" in terms of mone#. -hen
<D
competent' an" well-traine" emplo#ees leave an organization the human asset
i"s "ecrease" an" vice versa. 4n"er this metho" performance is +u"ge" in
terms of costs an" contri&utions of emplo#ees. Costs of human resources
consist of e8pen"iture on human resource planning' recruitment' selection'
in"uction' training' compensation' etc. Contri&ution of human resources is the
mone# value of la&or pro"uctivit# or value a""e" &# human resources.
0ifference &etween cost an" contri&ution will reflect the performance of
emplo#ees. This metho" is still in the transitor# stage an" is' therefore' not
popular at present.
.e4aAiora/ Anc4ore5 Ratin8 Sca/es :.ARS< - This metho" com&ines
graphic rating with critical inci"ents metho". 9AR3 are "escriptions of
various "egrees of &ehavior relating to specific performance "imensions.
Critical areas of +o& performance an" the most effective &ehavior for getting
results are "etermine" in a"vance. The rater recor"s the o&serva&le +o&
&ehavior of an emplo#ee an" compares these o&servations with 9AR3. %n this
wa# an emplo#ee?s actual &ehavior is +u"ge" against the "esire" &ehavior.
This steps involve" are 6 -
I5enti32 critica/ inci5ents - Persons with $nowle"ge of the i"entif# +o& to &e
appraise" "escri&e specific e8amples of &oth effective an" ineffective +o&
&ehaviors.
Se/ect 1er3or=ance 5i=ensions - The persons then cluster the &ehavioral
inci"ents into a smaller set (usuall# )-1*! of performance "imensions.
Retrans/ate t4e inci5ents - Another group of $nowle"gea&le persons assign
each inci"ent to the "imension that it &est "escri&es. %nci"ents for which there
is less than @)C agreement with the first group are not retranslate".
Assi8n sca/es to inci5ents - The secon" group rates each inci"ent on a @ or D
point scale. Rating is "one on the &asis of how well the &ehavior "escri&e" in
the inci"ent represents the performance on the appropriate "imensions. eans
>*
(average! an" stan"ar"s "eviations are then calculate" for the scale values
assigne" to each inci"ent.
DeAe/o1 3ina/ instru=ent - A su&set of the inci"ents that meets &oth the
retranslation an" stan"ar" "eviation criteria is use" as a &ehavioral anchor for
the final performance "imensions. A final 9AR3 instrument t#picall#
comprises a series of vertical scales that are en"orse" &# the inclu"e inci"ents.
Each inci"ent is positione" on the scale accor"ing to its mean value.
%+& 5e8rees 1er3or=ance a11raisa/ / This is a new concept in performance
appraisal' where the fee"&ac$ is collecte" from all aroun" /the emplo#ee' the
superior' the su&or"inates' the peer group' an" the customers. The evaluation
is ver# comprehensive in terms of the emplo#ee?s s$ills' a&ilities' st#les' an"
+o&-relate" competencies. This s#stem has the following a"vantages6
a! Higher vali"it# an" relia&ilit# of the evaluation.
&! 3elf evaluation &# the emplo#ees gets compare" with the
perception of others.
c! Helps in ma8imizing emplo#ee potential in the face of challenges.
AD7ANTAGES:
Ratings are li$el# to &e accurate &ecause these are "one &# e8perts.
The metho" is more relia&le an" vali" as it is +o& specific an" i"entifie"
o&serva&le an" measura&le &ehavior.
Ratings are li$el# to &e more accepta&le "ue to emplo#ee participation
The use of critical inci"ents is useful in provi"ing fee"&ac$ to the emplo#ee
&eing rate".
>1
Li=itations:
%t is ver# time consuming an" e8pensive to "evelop 9AR3 for ever# +o&.
9ehaviors use" are more activit# oriente" than results oriente".
A11raisa/ 02 resu/ts or M.O :Mana8e=ent 02 O0GectiAes< F The concept
of management &# o&+ectives was "evelope" &# Peter 0ruc$er in 1D)>. 3ince
then 92 has &ecome an effective an" operational techni.ue of performance
appraisal an" a powerful philosoph# of managing.
92 has &een "efine" as Aa process where&# the superior an" su&or"inate
managers of an organization +ointl# i"entif# its common goal' "efine each in"ivi"ual?s
ma+or areas of responsi&ilit# in terms of results e8pecte" of him an" use these
measures as gui"es for operating the unit an" assessing the contri&utions of each its
mem&ers.B %n other wor"s' 92 involves appraisal of performance against clear'
time &oun" an" mutuall# agree" +o& goals.
PROCESS OF M.O :
3et organization goals - Ioals of the organization in $e# areas of
performance are lai" "own. These goals are "efine" in clear' precise an"
measura&le terms. A through anal#sis of internal an" e8ternal
environment of the organization is ma"e to set these goals.
0efining performance targets - 2n the &asis of organizational goals'
performance stan"ar"s for each emplo#ee are "efine". Ever# su&or"inate
writes "own his own performance goals' which are wor$ relate"' an"
career-oriente". His manager also writes "own the goals he thin$s the
su&or"inate shoul" strive for. The two then "iscuss them' reach an
agreement an" put the agree" goals in writing. Thus' emplo#ees at all
>7
levels are involve" in goal setting. The goals are perio"icall# reviewe"
an" revise" to $eep them fle8i&le an" up-to-"ate.
Performance reviews - 1re.uent performance reviews meetings &etween
manager an" su&or"inate are hel". %n these meeting progress is assesse"'
wea$nesses an" constrains are i"entifie" an" steps to &e ta$en to improve
performance are "eci"e". 3u&or"inates activel# participate in this process.
This lea"s to self-control &# the emplo#ee.
1ee"&ac$ - After ever# performance review fee"&ac$ on performance is
communicate" to the emplo#ee so that he can regulate an" improve upon
his own performance. 2n the &asis of performance review rewar"s are
"eci"e". ,ew goals an" performance targets are "etermine" for the ne8t
perio".
AD7ANTAGES :
En"s /means chain
Role clarit#
2&+ective appraisal
otivation an" commitment
anagement "evelopment
Co-or"ination
LIMITATIONS:
0ifficult# in goal setting
Pro&lem of participation
(ac$ of un"erstan"ing
Time-consuming an" e8pensive
%nfle8i&ilit#
><
SHORT COMINGS OF PERFORMANCE APPRAISAL:
The i"eal approach to performance evaluation is that in which the
evaluator is free from personal &iases' pre+u"ices' an" i"ios#ncrasies. This is &ecause
when an evaluation is o&+ective' it minimizes the "#sfunctional &ehavioral of the
evaluator' which ma# &e "etrimental to the achievement of organizational goals. The
factors which impe"e o&+ective evaluations are6
T4e 4a/o e33ect - The halo effect is a Aten"enc# to let the assessment of
an in"ivi"ual one trait influence the evaluation of that person on other
specific traits.B There is this effect in appraisal when the appraiser
assigns the same rating to all traits regar"less of an emplo#ee?s actual
performance on these traits.
The halo effect refers to the ten"enc# to rate an in"ivi"ual consistentl#
high or low or average on the various traits' "epen"ing upon whether
the rater?s overall impression of the in"ivi"ual is favora&le or not. This
means that the halo effect allows one characteristic' or occurrence
(either goo" or &a"! to influence the rating of all performance factors.
The halo effect pro&lem can &e alleviate" &#6
Provi"ing a training programmer to the evaluators.
Restructuring the .uestions &# re.uiring the evaluator to consi"er each
.uestion in"epen"entl#.
Lenienc2 or strictness ten5enc2 - Ever# evaluator has hiss own value
s#stem which acts as a stan"ar" against which he ma$es his appraisals.
Relative to the true or actual performance an in"ivi"ual e8hi&its' some
supervisors have a ten"enc# to &e li&eral in their rating' that is the#
>>
consistentl# assign Nhigh values? to their emplo#ees' while at other
times the# ma# have a ten"enc# to assign consistentl# Nlow rating?.
The former ten"enc# is $nown as Npositive lenienc# error?' while the
latter as Nnegative lenienc# error?. 9oth these tren"s usuall# arise
from var#ing stan"ar"s of performance o&serve" &# supervisors an"
from "ifferent interpretations of what the# evaluate in emplo#ee
performance. The ten"enc# can &e avoi"e" &# hol"ing meeting or
training sessions for raters so that the# ma# un"erstan" what is
re.uDre" of them in rating.
T4e centra/ ten5enc2 1ro0/e= - %t is the most commonl# foun"
error. %t assigns Aaverage ratingsB to all the emplo#ees with a view to
avoi"ing commitment or involvementJ or when the rater is in "ou&t or
has ina"e.uate information or lac$ of $nowle"ge a&out the &ehavior of
the emplo#ee' or when he "oes not have much time at his "isposal.
The ran$ing tools "iscusse" earlier are aime" at avoi"ing this pro&lem.
Si=i/arit2 error - This t#pe of error occurs when the evaluator rates
other people in the same wa# he perceives himself. This error also
washes out if the same evaluator appraises all the people in the
organization.
Misce//aneous 0iases - 9ias against emplo#ees on groun" of se8' race
religion or position is also a common error in rating. 1or e8ample ' a
higher rating ma# &e given to a senior emplo#ee. The rater ma# also
&e influence" &# organizational influence an" give higher rating to
those hol"ing higher positions.
Socia/ 5i33erentiation - Ratin8 is sometimes impe"e" &# the
evaluator?s st#le of &ehavior. Pious has classifie" raters as Nhigh
"ifferentiationsB- that is using most of the scaleJ or Alow
>)
"ifferentiatorsB-that is' using a limite" range of the scale. A(ow
"ifferentiators ten" to ignore or suppress "ifferences' perceiving the
universe as more uniform than it reall# is.
High "ifferentiators' on the other han"' ten" to utilize all availa&le
information to the utmost e8tent an" thus are &etter a&le to
perceptuall# "en# anomalies an" contra"ictions than low
"ifferentiators.B 3ocial "ifferentiation ma$es evaluations using Ntrait?
criteria unrelia&le.
S1i// OAer E33ect - This t#pe of error occurs when past performance
rating influences the current rating.
STEPS FOR MA6ING APPRAISAL SUCCESSFUL
E8istence of an atmosphere of confi"ence an" trust.
The results of performance rather than personalit# traits shoul" &e given "ue
weight.
The supervisor shoul" anal#ze the strengths an" wea$nesses of the emplo#ee
an" a"vise him.
The appraisal programme" shoul" &e less time-consuming an" less costl#
The results of appraisal shoul" &e imme"iatel# communicate" to the
emplo#ee.
A post appraisal interview shoul" &e arrange".
Training can &e use" to improve the stan"ar"s of performance appraisal.
The right appraisal tools shoul" &e chosen to minimize arising pro&lem.
>=
PERFORMANCE APPRAISAL AT 7ISA6HAPATNAM STEEL
PLANT LIMITED
COMPONENTS
!4en to a11raise:
Performance appraisal across all levels at ;isa$hapatnam steel plant (imite" is
con"ucte" twice in a #ear. The Human resource "epartment sen"s the appraisal forms
to the concerne" "epartments after "ul# filling in the staff "etails"
!4o s4ou/5 a11raise:
The imme"iate superior of the emplo#ee not &elow the Assistant anager ca"re shall
&e the Reporting 2fficer. %n case the emplo#ee is "irectl# wor$ing un"er the
supervision of an# officer higher.
PROCEDURE:
The Human Resource "epartment prepares appraisal forms for each an"
ever# categor# of emplo#ee an" at the start of the appraisal perio"J it sen"s these
forms to the concerne" "epartments after filling in the necessar# "etails of the
emplo#ee to &e appraise" which is calle" N&ac$groun" information?.
The staff shoul" have wor$e" at least for a perio" of = months to &e
appraise" &# an officer. %n case the appraise reports to more than one Reporting
officer in an appraisal #ear' on transfer' promotion etc.' The personnel "epartment
woul" forwar" the appraisal forms to Reporting officers concerne" for the perio"' the
appraise reports to them..
The assessment an emplo#ee is primaril# governe" un"er a 7 - tier s#stem that is
assessment &# the Reporting officer as well as &# the Reviewing officer' where the
assessment is su&+ect to concurrence of the Consenting Authorit#' which will &e final.
>@
The assessment "one on the &asis of certain attri&utes M factors which
help in "efining the +o& re.uirements of a particular +o&. 4suall# a > - point scale or a
1* - point scale for each factor is use" for rating. 2nce the reporting officer gives his
rating an" comments if an#' the same shall &e put to the reviewing officer who after
careful scrutin# of the appraisal will pass his remar$s.
After the Reviewing officer?s comments are given an" "ul# signe" &#
him' he can a"vice the reporting officer to "iscuss the appraisal with the emplo#ee or'
in certain cases' ma# "eci"e to "iscuss the appraisal with the emplo#ee himself &ut in
the presence of the Reporting officer.
The reporting officer after rating the emplo#ee on various attri&utes
will give his remar$s' which are communicate"' to the reviewing officer. (ater these
are "iscusse" with the emplo#ee to $now his reaction. After the "iscussion with the
emplo#ee' the reporting officers give his final remar$s an" his suggestions for
improvement of the emplo#ee performance. The reviewing officer for further
comments later scrutinizes these.
The complete appraisal report is then sent &ac$ to the personnel
"epartment in a confi"ential cover. The personnel "epartment will then chec$ the
appraisal report for irregularities an" an# a"verse entries against an# of the emplo#ee
ma"e &# the reporting officer will &e communicate" to the emplo#ee in a covering
letter as$ing himMher to improve an" a cop# of the same will &e place" in hisMher
personal life.
O0GectiAes o3 1er3or=ance a11raisa/ s2ste= :
To appraise the in"ivi"ual?s performance on the wor$ assigne" to him an"
.ualities he is e8pecte" to show on the +o& in performing his tas$s as e8pecte"
&# the organization through his supervising officers an" to assess the potential
for higher responsi&ilities.
>E
To generate inputs for promotions' confirmations' placements' training an"
personnel an" "evelopmental "ecisions in respect of the in"ivi"ual so
appraise".
To assess the professional' managerial' &ehavior an" other training an"
"evelopment nee"s an" provi"e information to the personnelMHR0 "epartment
for the "evelopment "ecisions.
Gui5e /ines 3or A11raisers :
The emplo#ee shoul" &e appraise" for his present position.
:u"gment shoul" &e &ase" on the entire review perio" G not on isolate"
inci"ents.
3nap +u"gments shoul" &e avoi"e".
Each factor un"er consi"erations shoul" &e appraise" in"epen"entl#
without &eing influence" &# other factors.
%t is a"visa&le that the in"ivi"ual &eing assesse" shoul" compare with
others of the same ran$ emplo#e" on more or less similar t#pe of wor$.
2ver / rating as well as un"er / rating "iminishes the value of the
assessment.
Reason for given rating of the attri&ute shoul" &e well su&stantiate".
A cop# of a"verse remar$s communicate" to the emplo#ee shoul" &e
attache" to the appraisal form.
>D
A.OUT THE FORMS :
Content o3 t4e 3or=s :
H 9ACFIR24,0 %,12RAT%2, of the emplo#ee to &e fille" in &# the personnel
"epartment which contains-
1. ,ame
7. 0esignation
<. 0ate of :oining
>. 0epartment
). Emplo#ee num&er
=. 3pecial assignments
@. Lualifications
E. Commen"ations
D. Punishments an" warnings awar"e" "uring the #ear (with reasons!.
HATTR%94TE3 12R PER12RA,CEMP2TE,T%A( A33E33E,T
For O33icers:
Professional $nowle"ge an" application
Capacit# to achieve results
0epen"a&ilit#
:u"gment an" "ecision ma$ing
Communication 3$ills (-ritten or oral!
(ea"ership
Planning an" organizing a&ilit#
Co-operation an" team spirit
A"apta&ilit#
Personalit#.
)*
For Tec4nica/HNon-Tec4nica/ Sta33 :co==on attri0utes<:
:o& $nowle"ge6 Fnowle"ge an" un"erstan"ing of +o& assigne".
Lualit# of wor$6 Thoroughness an" accurac# of wor$ "one without mista$es'
neatness an" present a&ilit# shoul" &e consi"ere".
Lualit# of wor$6 Amount of output vis - a / vis the time ta$en.
%nitiative6 3elf - starting a&ilit#' resourcefulness an" the a&ilit# to inspire
confi"ence shoul" &e consi"ere".
Con"uct6 A&ilit# to get on with other fellow emplo#ees.
Regularit#6 Punctualit# an" regularit# of atten"ance.
(ea"ership6 A&ilit# to get wor$ "one &# su&or"inates giving them clear
gui"ance.
Cost consciousness6 A&ilit# to foresee the resource re.uirement for an# tas$
an" complete assignments with minimum waste.
For Tec4nica/ Sta33 on/2 :
3afet# Consciousness: Ha&its an" wor$ practices in respect of personal safet#
an" safet# of fellow emplo#ees.
Care of tool an" e.uipment6 anner in which tool an" e.uipment han"ling is
"one ensuring &etter tool life an" less maintenance an" "amage.
For Non FTec4nica/ Sta33 on/2 :
0ealing with others: A&ilit# to appreciate others point of view an" approach in
"ealing with customers' suppliers or an# other outsi"ers in conformit# with
organizational re.uirement.
)1
RATING OF ATTRI.UTES
The common factors an" the ratings un"er which the appraisal are ma"e are as
follows6
QUANTITY OF OUTPUT : E8tent of target fulfillment an" completion of
assigne" tas$s.
RAT%,I REA32,
1)-1< 2utput of wor$ e8ceptionall# high an" a&ove e8pectationsMtas$s assigne"
"espite high "egree of "ifficult# of tas$s.
17-1* 1ulfillment of all tas$s M targets "espite constraints
D.@ Tas$s assigne" generall# met with mo"erate effort
=-> 2utput &elow targetMe8pectation "espite lac$ of constraints.
o"erate effort.
<-1 2utput far &elow e8pectation.
TargetMtas$s not fulfille".
(ow effort
QUALITY OF OUTPUT : Ieneral e8cellence of output' the e8tent of wor$
free from errors.
RAT%,I REA32,
1)-1< E8cellent .ualit# of output accurate in wor$ un"er all con"itions.
17-1* 0oes a thorough an" accurate +o&
D-@ Ienerall# pro"uces wor$ of accepta&le .ualit#
=-> -or$ &arel# upto the mar$
<.1 -or$s consistentl# &elow re.uire" stan"ar"s
COST CONTROL : Awareness of cost aspects in the +o&. 2ptimum utilization of
availa&le resources an" re"uction of wastes.
RAT%,I REA32,
1*-D Alwa#s ma$es optimum utilization of resources
E.@ All assigne" tas$s complete" within the specific cost parameters
=.) Ienerall# $eeps within cost parameters an" time sche"ules.
>-< Conscious of the nee" to effect econom# an" manage time
7.1 -asteful in wor$. (ac$s "esire to complete assignments in time.
9O. 6NO!LEDGE AND S6ILL : Fnowle"ge pertaining to the area of
wor$ an" relate" areas.
)7
RAT%,I REA32,
1*-D E8cellent a&ilit# to anticipate future wor$ nee"s ahea" of time.
E-@ Ioo" $nowle"ge of his own +o& an" relate" areas
=.) Fnowle"ge a"e.uate in own area
>.< Fnowle"ge ina"e.uate in own an" relate" areas
7.1 Poor $nowle"ge. ,o motivation to learn
DISCIPLINE : A"herence to compan# policies an" rules
RAT%,I REA32,
1*.D E8emplar# &ehaviour an" con"uct
E.@ Ioo" &ehaviour an" con"uct
=.) 0iscipline is generall# goo"
>.< Con"uct an" "iscipline within managea&le limit
7.1 (ow in "iscipline
INITIATI7E : A&ilit# to &e self-reliant an" move forwar" on a tas$ without
outsi"e "irection.
RAT%,I REA32,
1*.D Totall# self-reliant. A self starter
E.@ Ioo" initiative
=.) Ienerall# shows goo" initiative
>.< ,ee"s gui"ance' instructions an" follow up
7.1 Alwa#s re.uires to &e tol"
COMMUNICATION : 3$ill an" "esire to share availa&le information with all concerne".
RAT%,I REA32,
1*.D E8cellent clarit# of thought an" e8pression
E.@ 3hares information with all concerne"
=.= Has mo"erate s$ill an" "esire to share information
>.< 2nl# &elieves in "ownwar" communication
7.1 (ac$s &oth the s$ill an" the will to communicate
MANAGEMENT OF HUMAN RESOURCES : Effective control an"
utilization of su& or"inates' ensuring "iscipline' integrating emplo#ees into teams an"
motivating them for higher levels of performance.
)<
RAT%,I REA32,
) E8cellent control over an" utilization of people
> Ioo" utilization of people
< Pla#s &asicall# a controlling function
7 Has little control
1 Has no control over hisMher people
)>
CHAPTER-,
A,A(53%3 A,0 %,TERPRETAT%2,

ANALYSIS AND INTERPRETATION
))
A sample of =* respon"ents wee selecte" at ran"om from
"ifferent "epartments li$eP (ines' ;igilance' ar$eting' 1inance'
Training an" 0evelopment center etc!.
A surve# was con"ucte" &# wa# of .uestionnaire to fin" out
whether the emplo#ees are satisfie" with the e8isting s#stem an" their opinions
on rate" areas.
The .uestionnaires are anal#ze" in &oth Ta&le format an"
Iraphicall#.
)=
STATEMENT NO: #
Are #ou happ# &eing associate" with ;isa$hapatnam 3teel PlantO
TA.ULATION FORMAT

SL" NO" RATING RESPONDENTS PERCENTAGE
1. 3trongl# "isagree * *
7. 0isagree * *
<. Agree 1) 7)
>. 3trongl# Agree >) @)
TOTAL +& #&&
COLUMN 5ia8ra=
INTERPRETATION
The a&ove ta&ulation format shows that the ma+orit# of @)C respon"ents
e8presse" strongl# agree to the a&ove statement. Emplo#ees of ;3P are happ# to
wor$ with the organization. 7)C of the respon"ents agree with the a&ove statement.
3TATEE,T ,26 7
)@

2&+ectives of the Performance Appraisal s#stem (PA33! are clearl# spelt out.
TA.ULATION FORMAT
SL" NO" RATING RESPONDENTS PERCENTAGE
1. 3trongl# 0isagree * *
7. 0isagree * *
<. Agree 1) 7)
>. 3trongl# Agree >) @)
TOTAL +& #&&
C2(4, 0%AIHRA
0% 0%
1500%
4500%
0% 0%
2500%
7500%
0
10
20
30
40
50
60
70
80
Series1
Series2
%,TERPRETAT%2, 6
The a&ove ta&le full# e8plains a&out the o&+ectives of the
performance Appraisal s#stem is clearl# spelt out the emplo#ees of @)C are strongl#
agree an" 7)C emplo#ees are agree. %n ;isa$hapatnam 3teel Plant the most of the
emplo#ees are strongl# agree to this statement.
3tatement ,o.<
0oes the performance appraisal help in creating an effective wor$ environment G
create positive relationshipsO
)E
ta0u/ation 3or=at
SL"NO" RATING RESPONDENTS PERCENTAGE
1 3trongl# "isagree < )
7 0isagree < )
< Agree >E E*
> 3trongl# Agree = 1*
TOTAL : +& #&&


C2(4, 0%AIRA


3
5
3
5
48
80
6
10
0
10
20
30
40
50
60
70
80
90
Respondents Percentage
Strongly disagree
Disagree
Agree
Strongly Agree
Inter1retation
The a&ove ta&le e8plains a&out "oes the performance appraisal helps in
creating a effective wor$ environment the emplo#ees of E*C are Agree"' 1*C
emplo#ees are strongl# agree' )C emplo#ees are strongl# "isagree an" )C emplo#ees
are "isagree with this statement.
3tatement ,o.>
Per3or=ance a11raisa/ s2ste= 4e/1s in ?no>in8 stren8t4s I >ea?nesses
o3 su0-or5inates"
ta0u/ation 3or=at

SL"NO" RATING RESPONDENTS PERCENTAGE
1 3trongl# "isagree * *
7 0isagree * *
)D
< Agree >) @)
> 3trongl# Agree 1) 7)
TOTAL : +& #&&

C2(4, 0%AIRA

0% 0%
4500%
1500%
0% 0%
7500%
2500%
0
10
20
30
40
50
60
70
80
Respon
dents
Inter1retation
The a&ove ta&ular format e8plains a&out "oes the performance
appraisal s#stem helps in $nowing the strengths an" wea$nesses of su&-or"inates to
this statement @)C emplo#ees are agree an" 7)C emplo#ees are strongl# agree. 3o
1**C emplo#ees are agree that &# this s#stem is useful to $nowing the strengths G
wea$nesses of su&or"inates.
3tatement ,o.)
Accor"ing to #our opinion' who is the 9est person to con"uct performance appraisal
s#stemO
ta0u/ation 3or=at
SL"NO" RATING RESPONDENTS PERCENTAGE
1 3uperiors <* )*
7 3u&-or"inates = 1*
< Peers 17 7*
> H20 17 7*
TOTAL : +& #&&
=*
C2(4, 0%AIRA

30
50
6
10
12
20
12
20
0
10
20
30
40
50
60
Respondents Percentage
Speriors
S!"
ordinates
Peers
#$D
Inter1retation
The a&ove ta&ulation e8plains regar"ing who is &est person to con"uct
performance the emplo#ees are )*C agree" that their superiors' 7*C emplo#ees are
agree" that their peers' 7*C emplo#ees are agree" that their H20 an" remaining
emplo#ees are agree" that their su&-or"inate are the &est person.
3tatement ,o.=
-hich metho" of performance appraisal "o #ou preferO
Ta0u/ation 3or=at
SL"NO" RATING RESPONDENTS PERCENTAGE
1 Potential appraisal E 1<.<<
7 Team appraisal = 1*
< 3elf Appraisal <> )=.=@
> <=* 0egree appraisal 17 7*
TOTAL : +& #&&
C2(4, 0%AIRA
=1

8
6
34
12
13%33
10
56%67
20
0
10
20
30
40
50
60
Per&or'ance
( Potential
appraisal
)ea'
appraisal
Sel&
Appraisal
360 Degree
appraisal
Responde
nts
Percentag
e
Inter1retation
The a&ove ta&le e8plains a&out the &est performance appraisal in
;isa$hapatnam 3teel Plant accor"ing to emplo#ees )=.=@C are agree" with self
appraisal' 7*C agree <=* "egree appraisal 1<.<<C agree performance an" potential
appraisal an" 1*C agree team appraisal.
3tatement ,o.@
!4at is 2our o1inion on t4e 1resent 1er3or=ance a11raisa/ s2ste= in 2our
or8aniBationJ
ta0u/ation 3or=at
SL"NO" RATING RESPONDENTS PERCENTAGE
1 E8cellent 1* 1=.=@
7 Ioo" <> )=.=@
< o"erate 1) 7)
> 9a" 1 1.==
TOTAL : +& #&&
=7
COLUMN DIAGRAM
1000%
3400%
1500%
100%
1667%
5667%
2500%
166%
0
10
20
30
40
50
60
*+cellent ,ood -oderate .ad
Respondents
Percentage
Inter1retation
This "iagram e8plains a&out the present appraisal s#stem' )=.=@C
emplo#ees agree" as goo"' 7)C agree" as o"erate' 1=.=@C agree" as E8cellent an"
1.==C &a".
=<
State=ent No"$
Do 2ou 3ee/ t4at /o> 1er3or=ance is 5ue to /ac? o3 s?i//J

Ta0u/ation 3or=at
SL"NO" RATING RESPONDENTS PERCENTAGE
1 3trongl# "isagree = 1*
7 0isagree <E =<.<<
< Agree 1> 7<.<<
> 3trongl# Agree 7 <.<>
TOTAL : +& #&&

C2(4, 0%AIRA

6
10
38
63%33
14
23%33
0
10
20
30
40
50
60
70
Respondents Percentage
Strongly disagree
Disagree
Agree
Inter1retation
The a&ove ta&ular form e8plains that =<.<<C emplo#ees "isagree that low
performance is "ue to loc$ of s$ills. 1>C agree the statement' 7C strongl# agree an"
=C emplo#ees a strongl# "isagree.
=>
State=ent No"*
Do 2ou t4in? 1er3or=ance a11raisa/ 4e/1 in assessin8 t4e trainin8 nee5s o3
t4e su0or5inatesJ
Ta0u/ation 3or=at
SL"NO" RATING RESPONDENTS PERCENTAGE
1 5es <* )*
7 ,o 7 <.<>
< 3ometimes 7E >=.==
TOTAL : +& #&&
C2(4, 0%AIRA

30
2
28
50
3%34
46%66
0
10
20
30
40
50
60
/
e
s
0
o
S
o
'
e
t
i
'
e
s
Respond
ents
Inter1retation
The a&ove ta&ulation format shows that )*C emplo#ees are thin$ performance
appraisal helps in assessing the training nee"s of the su&or"inates' >=.==C emplo#ees
tic$ the option sometimes an" <.<>C emplo#ees tic$ ,o.
=)
State=ent No"#&
A>areness 1ro8ra==es re8ar5in8 1er3or=ance a11raisa/ s2ste= s4ou/5
0e con5ucte5 1erio5ica//2"
Ta0u/ation 3or=at
SL"NO" RATING RESPONDENTS PERCENTAGE
1 3trongl# "isagree * *
7 0isagree * *
< Agree >7 @*
> 3trongl# Agree 1E <*
TOTAL : +& #&&
C2(4, 0%AIRA
0 0
42
18
0 0
70
30
0
10
20
30
40
50
60
70
80
Strongly
disagree
Disagree Agree Strongly Agree
Respondents
Percentage
Inter1retation
The a&ove statement agree &# @*C respon"ents an" <*C emplo#ees are strongl#
agree the statement i.e.' awareness programs are con"ucte" perio"icall#..
==
State=ent No"##
!i// t4e 1er3or=ance a11raisa/ s2ste= encoura8e 1eo1/e to 1/an t4eir
>or? >e// in a5AanceJ
Ta0u/ation 3or=at
SL"NO" RATING RESPONDENTS PERCENTAGE
1 3trongl# "isagree = 1*
7 0isagree D 1)
< Agree <D =)
> 3trongl# Agree = 1*
TOTAL : +& #&&
COLUMN DIAGRAM

6
10
9
15
39
65
6
10
0
10
20
30
40
50
60
70
Respondents Percent age
Strongly
disagree
Disagree
Inter1retation
The a&ove ta&ulation shows that =)C respon"ents agree' 1)C "isagree' 1*C strongl#
"isagree an" remaining 1*C strongl# agree with the statement performance appraisal
s#stem encourage people to plan their wor$ well in a"vance.
3tatement ,o.17
=@
In t4is or8aniBation@ 5o 1eo1/e 4aAe an o11ortunit2 to 1artici1ate in t4eir
a11raisa/J
Ta0u/ation 3or=at
SL"NO" RATING RESPONDENTS PERCENTAGE
1 5es >* ==.=@
7 ,o > =.=@
< Partiall# 1= 7=.==
TOTAL : +& #&&
COLUMN DIAGRAM

0
10
20
30
40
50
60
70
Respondent sPercentage
40
66%67
4
6%67
16
26%66
/es
0o
Partially
Inter1retation
The a&ove ta&ulation format shows that the ma+orit# of ==.=@C respon"ents sa# #es to
the a&ove statement. 7=.==C sa# partiall# an" =.=@C e8presse" ,o to the given
statement.
=E
State=ent No"#%
Do 2ou t4in? 1er3or=ance a11raisa/ s2ste= 3or=s 1ro1er 0asis 3or
=a?in8 5ecisions re8ar5in8 1ro=otions an5 re>ar5s s2ste=J
Ta&ulation format
SL"NO" RATING RESPONDENTS PERCENTAGE
1 3trongl# "isagree 7 <.<<
7 0isagree > =.=@
< Agree >* ==.=@
> 3trongl# Agree 1> 7<.<<
TOTAL : +& #&&

C2(4, CHART

200%
400%
4000%
1400%
333%
667%
6667%
2333%
0
20
40
60
80
Strongly
disagree
Disagree Agree Strongly
Agree
Respondents
Percentage
Inter1retation
The a&ove ta&le full# e8plains a&out whether the performance appraisal s#stem forms
proper &asis for ma$ing "ecision regar"ing promotions an" rewar"s s#stem in among
emplo#ees ==.=@C agree' 7<.<<C emplo#ees strongl# agree an" remaining 1*C
emplo#ees "isagree the statement.
=D
State=ent No"#)
0oes ;isa$hapatnam 3teel Plant go &# erit or 3eniorit# with respect to promotionsO
Ta&ulation format
SL"NO" RATING RESPONDENTS PERCENTAGE
1 9# merit = 1*
7 9# 3eniorit# 1E <*
< 9oth <* )*
> ,one = 1*
TOTAL : +& #&&

C2(4, CHART
6
10
18
30 30
50
6
10
0
10
20
30
40
50
60
Respondents Percentage
.y 'erit
.y Seniority
.ot1
0one
Inter1retation
The ta&ular format e8plains a&out whether ;isa$hapatnam 3teel Plant gives
promotion &# erit or seniorit#. )*C respon"ents sa# that &# &oth erit an"
3eniorit#' 1*C respon"ents &# erit' <*C respon"ents &# seniorit#.
@*
State=ent No"#,
Are an# onitor# G ,on-onitor# &enefits given for outstan"ing performanceO
Ta&ulation format
SL"NO" RATING RESPONDENTS PERCENTAGE
1 5es 7* <<.<<
7 ,o 7* <<.<<
< Partiall# 7* <<.<<
TOTAL : +& #&&
C2(4, CHART
2000% 2000% 2000%
3333% 3333% 3333%
0
5
10
15
20
25
30
35
/es 0o Partially
Respondents
Percentage
Inter1retation
The a&ove "iagram inferre" that e.uall# respon"e" to the monetar# an" ,on-
onetar# &enefits to the outstan"ing performance in the wor$.
@1
CHAPTER-+
FINDINGS AND SUGGESTIONS
@7
SUMMARY
The A.ualit#B revolution has change" the wa#s in which man# organisations
operate. -ith glo&al competition' the "rive to provi"e &etter .ualit# an" to satisf#
e8ternal an" internal customers has &een activate". At ;isa$hapatnam 3teel Plant' an
attempt was ma"e to integrate this thought in Performance Appraisal 3#stem.
;isa$hapatnam 3teel Plant e8ecutives Performances Appraisal 3#stem mainl#
aims at a AResult 2riente" e8ecutivesB. To &ring this a&out man# activities are to &e
initiate"' li$e Performance &ase" recognition' competencies to han"le futureMcurrent
+o&s' career growth etc an" PA3 "esigne" to provi"e the $e# inputs that all the a&ove
nee" to &e activate".
Their s#stem of appraisal' in the first instance' loo$e" Afool-proofB an" well
"esigne" to suit the .ualit# genre' for it has integrate" in itself some won"erful
concepts. 9ut' when this stu"# is complete" the resultMconclusion showe" that the
emplo#ees' who actuall# are participants in the s#stem' "o feel that this s#stem is not
ver# effective. 3urprise" &# this result' an attempt was ma"e to anal#ze the
REA32,3 12R 0%33AT%31ACT%2, of e8ecutives their Performance Appraisal
3#stem. The# are6
1. ostl# this s#stem is not helping the person to assess his capa&ilities
the assessment is mostl# "epen"ent upon the o&e"ience with his &oss.
7. 3elf-assessment "oes not carr# enough weight age. 3o' the "rive to
sincerel# appraise ones own self is lac$ing.
<. Potential review is integrate" in the PA3. 9ut. Potential &eing the
capa&ilit# to ta$e up the future +o& cannot &e +u"ge" &# the
performance on the present +o&
Training nee"s i"entifie" either through self-assessment or team assessment
consoli"ate" an" onl# a few of them are finalize" after several roun"s of filtering.
This in"irectl# is resulting in training programmes' which "o not cater to all the
emplo#ees' &eing "esigne". An" as emplo#ees perceive that the training the# as$e"
for is not &eing provi"e"' there woul" &# a little or no commitment at all.
@<
FINDINGS:
The o&+ectives of ;PA3 are not clear to man#.
;PA3 has &ecome a routine affair an" not much importance given an" interest
shown towar"s their purpose.
0iscussion &etween the appraiser an" appraise regar"ing the appraisal is not
performe" seriousl#.
ost appraisers lac$ proper training regar"ing the appraisal techni.ue an" in
"ealing with post appraisal tools li$e counseling
The emplo#ees are felt merit has &een given least preferences in promotions.
The# onl# consi"er seniorit# for promotions. This is not an a"visa&le one
ost of the emplo#ees in ;P3A are more "issatisfie" with Appraisal process
as the management consi"ering appraisal rating is least often the# are not
consi"ering performance of emplo#ees in promotions.
a+orit# of the emplo#ees accepte" appraisal process shoul" &e carrie" &#
3uperior
@>
SUGGESTIONS:
3ample of =* respon"ents were selecte" at ran"om the cross-section of emplo#ees
from the staff to mi""le level management for their opinions on the e8isting appraisal
s#stem. The surve# was con"ucte" (&# wa# of .uestionnaire an" interview! to fin" out
whether the emplo#ees are satisfie" with the e8isting s#stem an" their opinions on
rate" areas. 34IIE3T%2,3 12R A 9ETTER PER12RA,CE APPRA%3A(
353TE
4se of counseling as a tool to improve performance can help the emplo#ees
provi"e" it is "evoi" of severe criticisms' suppression of "omination.
Appreciation for goo" performance an" proper gui"ance for improvement is a
must.
Appraisal lin$e" to promotions an" increments will motivate the emplo#ee to
war"s wor" culture.
As the appraisal is "irectl# lin$e" to promotions or career progressions of an
emplo#ee there shoul" &e transparenc# in "iscussing the appraisal report.
2&+ective an" fair assessment can in"uce seriousness towar"s appraisal an"
help increase motivation among emplo#ees 3uggestions which hisMher
performance will &e +u"ge" in en" of #ear
9esi"es 3eniorit# erit of the emplo#ees also shoul" ta$e into consi"eration
while promoting them to higher level
@)

CONCLUSION
Performance appraisal is simpl# the process of evaluation of an in"ivi"ual in the
organization. To"a# most of the in"ustries are concentrating on two aspects for
increasing the pro"uction. Those are intro"ucing of new technolog# an" the
manpower. %ntro"ucing of new technolog# "epen"s on in"ustr#. 3o the top-level
people concentrate their i"eas to improve the wor$ing s$ills of the emplo#ees.
The stu"# performance appraisal s#stem is to $now whether the s#stem is effective or
not. That is performance appraisal s#stem is useful in improving wor$er performance
stan"ar" or not. The performance appraisal s#stem is the ma+or tool of increasing the
wor$ing s$ills of emplo#ee?s in or"er to achieve the pro"uction.
%n ;isa$hapatnam 3teel Plant. The# are using <=*-"egree performance appraisal
s#stem for non-management staff an" &alance scorecar" s#stem for management staff.
@=
.I.LOGRAPHY:-
P.3499A RA2- H4A, RE324RCE A,AIEE,T
%,043TR%A( RE(AT%2,3-H%AA(A5A P49(%3H%,I H243E.
Q A.A3-ATHAPPA- H4A, RE324RCE A,AIEE,T A,0
PER32,,E( A,AIEE,T-TATA C IRA-H%((.
F.F.AH4:A /H4A, RE324RCE A,AIEE,T-FA(A5A,%
P49(%CAT%2,3.
AR4, 2,APPA A,0 %RKA /PER32,A( A,AIEE,T-
TATA C IRA- H%((.
; 3 P RA2 A,0 P.3 ,ARA5A,A /A,AIEE,T-PRE%ER
922F C2PA,5',E- 0E(H%
VISAKHAPATNAMST STEEL PLANT HAND BOOK
1. WWW. RINL.CO.IN
7. www.google.com
<.www.scri&".com
>.www.wi$ipe"ia.org
@@
AnneCure
@E
QUESTIONNAIRE
Stu52 on 1er3or=ance a11raisa/ s2ste= 3or ECecutiAes at 7isa?4a1atna= Stee/
P/ant"
0ear 3ir'
-e are 99 stu"ents "oing pro+ects in ;isa$hapatnam 3teel Plant. 2n topic
APER12RA,CE APPRA%3A(B. -e re.uest #ou sir' to spare #our valua&le time
for giving information.
NAME :
EMPLOYEE NO :
DISIGNATION : AGE:
DEPARTMENT :
9elow statements have &een frame" &asing on a rating scale' using the co"e given
&elow for each statement' please tic$ #our choice ( !
1. Are #ou happ# &eing associate" with ;isa$hapatnam 3teel PlantO
a! 3trongl# 0isagree &! 0isagree c! Agree "! 3trongl# agree
7. 2&+ectives of the Performance Appraisal 3#stem (PA33! is clearl# spelt out.
a! 3trongl# 0isagree &! 0isagree c! Agree "! 3trongl# agree
<. 0oes the performance appraisal help in creating an effective wor$ environment G
create positive relationshipsO
a! 3trongl# 0isagree &! 0isagree c! Agree "! 3trongl# agree
>. Performance appraisal s#stem helps in $nowing strengths G wea$nesses of su&-
or"inates.
a! 3trongl# 0isagree &! 0isagree c! Agree "! 3trongl# agree
). Accor"ing to #our opinion' who is the 9est person to con"uct performance
appraisal s#stemO
a! 3uperiors &! 3u&-2r"inates c! Peers "! H.2.0.
@D
=. -hich one "o #ou thin$ is the &est performance appraisal s#stem in #our
organizationO
a! Performance G Potential appraisal &! Team Appraisal
c! 3elf Appraisal "! <=*
*
"egree appraisal
@. -hat is #our opinion on the present performance appraisal s#stem in #our
organizationO
a! E8cellent &! Ioo" c! o"erate "! 9a"
E. 0o #ou feel that low performance is "ue to lac$ of s$illO
a! 3trongl# 0isagree &! 0isagree c! Agree "! 3trongl# agree
D. 0o #ou thin$ performance appraisal help in assessing the training nee"s of the
su&or"inatesO
a! 5es &! ,o c! 3ometimes
1*. Awareness programs regar"ing performance appraisal s#stem shoul" &e
con"ucte" perio"icall#.
a! 3trongl# 0isagree &! 0isagree c! Agree "! 3trongl# agree
11. -ill the performance appraisal s#stem encourage people to plan their wor$ well in
a"vanceO
a! 3trongl# 0isagree &! 0isagree c! Agree "! 3trongl# agree
17. %n this organization' "o people have an opportunit# to participate in their
appraisalO
a! 5es &! ,o c! Partiall#
1<. 0o #ou thin$ performance appraisal s#stem forms proper &asis for ma$ing
"ecisions regar"ing promotions an" rewar"s s#stemO
a! 3trongl# 0isagree &! 0isagree c! Agree "! 3trongl# agree
1>. 0oes ;isa$hapatnam 3teel Plant go &# erit or 3eniorit# with respect to
promotionsO
a! 9# merit &! 9# 3eniorit# c! 9oth "! ,one
1). Are an# onitor# G ,on-onitor# &enefits given for outstan"ing performanceO
a! 5es &! ,o c! Partiall#
E*
1=. -hat suggestions "o #ou ma$e to improve the present performance appraisal
s#stem in ;isa$hapatnam 3teel PlantO
RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR
RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR
E1