Performance Management at ALSTOM

A study of Performance Management System in ALSTOM
(Approved by AICTE and Affiliated to G.G.S. Indraprastha University, Delhi)

Plot N0-6, Sector-25, Rohini, Delhi-110085
Ph: 27932742/ 27934011/ 27934400
Website: http://www.dias.ac.in
EFFECTIVENESS OF PERFORMANCE
MANAGEMENT SYSTEM
IN
Corporate Internship Report

Internship Report submitted as a partial requirement for the award of the
two year Master of Business Administration Programme
MBA 2009-11
Name: Shanu Sosa John

Roll No: 12112303909
Telephone: 9899063135
E-mail: shanu.john@hotmail.com
(ALSTOM Projects India Limited, IHDP Building, Plot-7, Sector 127, Noida,
Uttar Pradesh)
Corporate Internship Supervisor
Name: Mr. Hameed Jung (Senior Manager, HR)
Contact Details: 0120-4732326
Mailing Address: hameed.jung@power.alstom.com
DIAS-Faculty Supervisor: Ms. Shilki Bhatia
Start Date for Internship: 25th May 2010

End Date for Internship: 25th July 2010
Delhi Institute of Advanced Studies Page 1

Self Certification by the Intern
I hereby certify that I, Shanu Sosa John have successfully completed my internship
with “ALSTOM Projects India Limited” in the month of May 2010 from (25th May to
25th July 2010). This is also to certify that this report is an original product and no
unfair means like copying etc have been used for its completion.
Name: SHANU SOSA JOHN
Signature:
Date:

Certificate from the Corporate Internship Providing Organization
This is to certify that Ms. Shanu Sosa John has successfully completed her
internship with us in the month of May 2010 from (25th May to 25th July 2010). We
wish her all the best for all her future endeavors.
Name of the Supervisor: Hameed Jung

Signature:
Date:

ACKNOWLEDGEMENT
No task is a single person effort, same is with this project. Thus I would like to
extend my sincere thanks to all those people who helped me in accomplishing my
project.
I owe my project success to all faculty members, especially our Director Sir, Dr. S.N
Maheshwari for providing us with this wonderful opportunity and guidance. I would
like to extend my special gratitude to Ms. Shilki Bhatia for providing excellent
facilitation for the successful completion of this project. This project provided me a
platform to increase my knowledge and empowered me with a better understanding
of concepts in the real world scenario.
And last but not the least special thanks to “ALSTOM PROJECTS INDIA LTD” who
accepted me in spite of my inexperience in the field and gave me the opportunity to
work and learn with them. I, with immense pride and deep sense of gratitude give
sincere thanks to Mr. Manish Gaur General Manager (HR) and acknowledge the
guidance extended to me by Mr. Hameed Jung (Senior Manager, HR), Ms. Preeti
Saini (HR manager) during the tenure of my training, without whom this whole
project would have been an impossible dream of me. With constant help and time-
to-time suggestions to me come out with this dissertation, in a presentable form. I
hereby extend my sincere thanks and gratitude to him.

INDEX
Sr. Page
Topics
No. No.
Executive summary
1. 6-7
Objectives
2. 8
Company Profile
3. 9-23
Industry Profile
4. 24-34
Financial Analysis
5. 35-45
Theoretical Framework
6. 46-67
Research Methodology
7. 68-69
Analysis and Interpretation
8. 70-81
Conclusion And Recommendation

9. 82-84
Bibliography
10. 85-86
Annexure And Reference 87-
11.
92
EXECUTIVE SUMMARY

ALSTOM is a France-based multinational corporation. Alstom is a global leader in

power generation, power transmission and rail transport. It sets the benchmark for
innovative and environmentally friendly technologies. Alstom builds the fastest train
and highest capacity automated metro in the world and provides turnkey integrated
power plant solutions for many energy sources including hydro, nuclear, gas, coal
and wind.
Alstom was born with its first factory in Belfort with the merger of Société Alsacienne
de Constructions Mécaniques (SACM) and Thomson Houston in 1928.
With 80,000 employees in 70 countries, the Group had orders of €14, 9 billion in
2009/10. It has a common goal to ensure profitable Company growth by offering
customers highly effective infrastructures vital to economic development, social
progress and environmental protection "we are shaping the future"
This Project is all about Alstom Company’s short term Human Resource need and
its allocation. This project is associated with the care area of Performance
Management System. This Project comprises of how the company maintains its
transparency and competencies and how much is to be maintained so that the
company has appropriate liquidity and performance that lays the company and other
related process in motion.
The Areas of the study in this project is Performance Management System of

the company. Unique roles, Key Result Area, Baseline Responsibilities,
competencies, these are all part of Performance Management System and are being
studied practically in Alstom.
Performance management includes activities to ensure that goals are

consistently being met in an effective and efficient manner. Performance
management can focus on performance of the organization, a department,
processes to build a product or service, employees, etc. Information in this topic will
give you some sense of the overall activities involved in performance management.

The basic objective of the research is to analyze the Performance of the firm,
by analysising various Human Resource Practices and Functions. To know the
evolution in Performance Management System of the firm, we have to compare the
previous and present PMS of the company’s.
The Need and importance of PMS can hardly be underestimated. Every

firm must maintain self-propelled performance management system otherwise its
business activities may be adversely affected.
For employee performance management, using integrated software, rather

than a spreadsheet based recording system, may deliver a significant return on
investment through a range of direct and indirect sales benefits, operational
efficiency benefits and by unlocking the latent potential in every employees work day
i.e. the time they spend not actually doing their job.
In order to do the study, secondary data regarding the Human Resource

aspects of the organization was extracted. The sources of secondary data from the
organization were the ISO procedures present in HR portal. Using the available data
and primary data (questionnaires and interviews), transparency, objectivity and
improvement in the system is analyzed .Conclusion was drawn based on the
analysis and comparison.
OBJECTIVE

The Objectives of the project are as follows:
 The main objective of the project is to render a better understanding of

“PERFORMANCE MANAGEMENT SYSTEM IN ALSTOM”.
 To study the Evolution of PMS in ALSTOM from previous to present system
through primary and secondary source of data collection and further analysis on
the basis of:
 Objectivity
 Transparency
 Role clarity
 Linkage with other HR system
 System improvement
 To suggest the ways for improving the system on the basis of finding.
 To study various human resource activities and processes performed at
Corporate Office of ALSTOM in order to learn and get a detail insight of
various activities related to PA.

COMPANY’S PROFILE
INTRODUCTION
ALSTOM has supplied more than 25% of the world's installed power generation
capacity. In equipment and services for the rail transport sector, Alstom is the
pioneer and undisputed leader in very high-speed trains, and is developing state-of-
the-art solutions for urban transport systems. We set the benchmark for innovative,
environmentally friendly technologies in the world of power and rail transport
infrastructure. Our engineers built the fastest train and the highest capacity
automated metro in the world. We provide turnkey integrated power plant solutions
and associated services for a wide variety of energy sources, including hydro, gas
and coal.
Our Group employs around 80,000 people in 70 countries, serving customers
worldwide.
Alstom, a world leader in transport and energy infrastructure
 Present in more than 70 countries
 Sales 2009/10 : €23 billion (Pro Forma accounts 2009/10 after the acquisition
of Areva's transmission business)
 96, 500 employees
 Chaired by Patrick Kron
One in four of the world’s light bulbs is powered by Alstom technologies

The company is the world leader in integrated power plants for the production of
electricity and air quality control systems. Alstom has solutions for all energy sources
(coal, gas, nuclear, fuel-oil, hydropower, wind) and is a leader in innovative
technologies for the protection of the environment (reduction of CO2 emissions,
elimination of pollutant emissions). The Group is also developing CO2 capture
processes and has integrated this technology in pilot plants in Germany and USA.
The world leader in very high speed and high speed transport
Alstom supplies rolling stock, transport infrastructure and signalling, maintenance
equipment and global rail systems. From the very first TGV* delivered in 1978 to the
AGV, the fourth generation of very high speed trains, Alstom has developed a world
leading position in this market sector. Alstom’s technological advances allowed the

company to achieve the world rail speed record at a speed of 574.8 km/h on 3 April
2007.
Alstom Grid - a global organisation focused on performance

The sector, headquartered in France at La Défense, the business district west of
Paris, has four main businesses: Products (electrical equipment of the ultra-high-
voltage and high-voltage electricity transmission system, 51% of sales), with world
leading positions in disconnectors and instrument transformers; Systems (network
management systems and big turnkey projects, 34% of sales), with a leading
position in HVDC solutions (high voltage direct current) thanks to its expertise in
power electronics; Automation (sophisticated information systems for real-time
management of electricity grids); and Service.
HISTORY
Year Points of note
1928 The beginning of Alsthom was from the merger of Thomson-Houston and
Société Alsacienne de Constructions Mécaniques (SACM), with its 1st

factory in Belfort.
Alsthom acquires Constructions Electriques de France, Tarbes, a
1932 manufacturer of electric locomotives as well as electrical and hydraulic
equipment. Transport thus becomes a part of Alsthom
Compagnie Générale d'Electricité (CGE) becomes majority shareholder of
1969
Alsthom
The first TGV is delivered to SNCF. The TGV went on to break world rail
speed records in 1981 (380 km/h) and 1990 (515.3 km/h), and achieved
1978
the world endurance record for high speed train lines in 2001, travelling
from Calais to MarsALSTOMle (1067.2 km) in 3 hours and 29 mins.
The Alsthom Belfort site receives an order from EDF for the largest gas
1986
turbine in the world (212MW)
GEC ALSTHOM is formed from the merger of the power and transport
1989
activities of Compagnie Générale d'Electricité (CGE) and the UK GEC.
1994 LHB Salzgitter joins GEC Alsthom
1995 Outstanding shares in MAN Energie (steam turbines) are acquired
1998 GEC Alsthom acquired Cegelec (electrical contracting)
ALSTOM acquires Sasib Railways (Italy), which also adds the former
1998
General Railway Signal (USA)
ALSTOM acquires the Canadian Télécité Inc., a worldwide Centre of
Excellence in passenger information and security solutions ALSTOM and
1999
ABB merge their energy businesses in a 50-50 joint company known as
ABB ALSTOM POWER.
ALSTOM acquires a 51% stake in Fiat Ferroviaria, the Italian rail
2000
manufacturer and world leader in tilting technology.
ALSTOM supplies the highest capacity automated metro in the world to
2003
Singapore
The French State takes up a 21% stake in ALSTOM’s capital to support
2004 the recovery of the company.ALSTOM delivers the Queen Mary 2, the
world’s largest cruise liner, to Cunard.
ALSTOM sells ALSTOM Power Rentals to APR LLC later becoming APR
2004
Energy LLC
GT 24/26 turbines achieve 1.5 million operating hours and major sales to
2005/2 countries such as Italy, Germany, Spain and Thailand demonstrating the
006 Group’s return to the gas turbine market with a technologically advanced
product.
On 27 April, ALSTOM signs a cooperation framework agreement with
2006 Bouygues, the French conglomerate, for the purchase of the 21% stake in
ALSTOM that the French government held.
Following a new Graphic Chart, the Group name is now written "Alstom",
2007 with the exception of the legal entities which are written with ALSTOM in
capitals, e.g. ALSTOM S.A.
2009 Alstom acquired 25%+1 share of Russian Transmashholding.
2010 Alstom re-acquires the Transmission Division of Areva T&D (The T of the

T&D) that was previously sold to Areva in 2004 and creates a new
division called Alstom Grid
THREE SECTORS IN WHICH ALSTOM WORKS

ALSTOM is a global leader in power generation and rail infrastructure, setting the
benchmark for innovative and environmentally conscious technologies. The Group is
the only multi specialist constructor in the railway sector covering everything from
rolling stock and maintenance to signaling and infrastructures. ALSTOM provides
turnkey integrated power plant solutions and associated services for a wide variety
of energy sources, including gas, coal, hydro, nuclear and wind.
POWER GENERATION
Alstom Power designs, manufactures, supplies and services state-of-the-art
products and systems for the power generation sector and industrial markets.
Alstom Power covers all energy sources and offers the most advanced solutions
available for coal- and gas-fired plants. Alstom is also the leading provider of
conventional islands for nuclear plants and paves the way in renewable energy
solutions through its strong position in the hydropower market and its recent entry
into the wind power market.
Alstom Power an unrivalled expertise in project management for a variety of power
generation systems, from small to large, from single equipment to complete turnkey
solutions. The group has supplied major equipment for 25% of the worldwide
installed base.
Products
Alstom offers the broadest range of products and services in the industry, ensuring a
variety that allows the Group to offer integrated solutions. Alstom also draws on
extensive expertise in power plant refurbishment, maintenance and optimization.
• Boilers, heat recovery steam generators, air pre-heaters, pulverizers

• Steam turbines, gas turbines

• Wind Turbines
• Turbo generators and generators
• Air quality control systems
• Monitoring and control systems for power plants
Turnkey solutions
Alstom’s unique offering brings real value to our customers. With its innovative plant
integration concept, the company helps operators to maximize their plants’
performance, while fully complying with environmental regulations and obligations.
• Gas-fired power plants

• Coal-fired (steam) power plants
• Conventional islands for nuclear power plants
• Hydroelectric power plants
• Wind farms
Services
• Services for Alstom and other OEM steam turbines and boilers
• Product retrofitting for nuclear and fossil steam turbines
• Maintenance, services, long term agreements (LTSA's), for Alstom, GE, and
Siemens gas turbines
• Refurbishment of existing plants
TRANSPORT
A promoter of sustainable mobility, Alstom Transport develops and markets the most
complete range of systems, equipment and service in the railway market. The
company is one of the leaders in the world transport market.
The growing complexity of technical solutions and infrastructure projects is leading
increasing numbers of customers to demand complete solutions. Present in over 60
countries, with 26,000 employees, Alstom Transport’s strength lies in its ability to

manage entire transport systems, taking in rolling stock, signaling, infrastructure and
maintenance, and to offer “turnkey” solutions.
Products
• Rail vehicles
The product range includes High and Very High Speed Trains, Trams, Metros,
Commuter Trains, Intercity Trains, Tilting trains, Locomotives.
• Rail infrastructure
Alstom designs, produces and installs infrastructure for the rail network to upgrade
safety and performance of existing networks, or as part of new turnkey solutions.
This includes Information solutions, Electrification, Communication systems, Track
laying, Station utilities, Workshops & depots.
• Turnkey systems
The company provides light rail systems including tramways with or without electric
overhead lines, metro systems and air-rail links (traditional and automatic).
• Services
Renovations with technological upgrades and short- or long-term maintenance of

any type or brand of mass transit rail vehicle, and spare parts service are also
offered.
Passenger rail vehicles
• AGV high-speed trains

• Amtrak California passenger cars
• Coradia and Adelante trains
• Juniper trains
• British Rail Mark 4 coaches
• San Francisco Bay Area Rapid Transit (BART) District C (C1) cars (Built in
1980s)
• Citadis trams

• Chicago Chicago Transit Authority 2600 series car rehabilitation

• Federal Rail Express electric locomotives.
• Metropolis Urban trains
• Indian Railways LHB passenger coaches
• Iran Railways AD43C diesel electric locomotives
• Sri Lanka Government Railway 10 M9 locomotives
• Prima diesel and electric locomotives
• SNCF electric locomotives.
• TGV high-speed trains
• Various metro trains
• X'Trapolis Suburban trains
• X60 Train Suburban trains
• 4th generation S-trains Suburban trains
• Washington Metro 6000 & 2000/3000(remanufactured) series cars WMATA
Railway signalling equipment
• Control Centers
• Interlocking Equipment
• Signals
• Switch/Point Machines
• Track Circuits
Rail clients
• Angel Trains
• Amtrak
• Amtrak California
• České dráhy
• China Ministry of Railways
• CP
• CPTM
• FGC
• HSBC Rail
• Incofer Costa Rica
• Indian Railways
• Iran Railways
• Kowloon-Canton Railway Corporation
• London Underground
• Luas
• Metro de Barcelona
• Metro Warszawskie (Warsaw)
• MARTA (Alstom rehabed the Franco-Belge CQ310 and Hitachi CQ311 cars)
• Metro Trains Melbourne
• MTA New York
• MTR

• New Jersey Transit

• NS
•
TRANSMISSION
The creation of a third sector, Alstom Grid, opens a new
development phase for Alstom
By its acquisition on 7 June 2010 of Areva T&D’s transmission business, Alstom
completes a decisive stage in its development by forming a new sector, named
Alstom Grid, to supplement the existing two sectors in power generation and rail
transport, Power and Transport.
Providing a total, streamlined and efficient approach to power generation and
transmission, the Alstom Group meets the needs of a changing, challenging world.
With four distinct business areas - Products, Systems, Automation and Service -
Alstom Grid's expertise in the field of transmission inspires the same world-leading
status as its Power and Transport counterparts.
“Alstom Grid, which is Alstom’s high voltage transmission business, will be its third
sector alongside Power and Transport. This sector will benefit from all the synergies
and all the resources that the Group has, particularly in its international network
having a presence in 70 countries, its technological and industrial capabilities and in
the existing links between the high voltage electricity transmission and power
generation business”, says Patrick Kron, Alstom’s Chief Executive Officer.
A new world leader

Alstom Grid generated sales of over €3.5 billion in 2009. Employing 20,000 people
on more than 90 manufacturing sites worldwide, Alstom Grid is among the top three
groups specialising in electricity transmission:
“Alstom Grid brings its customers more than 100 years of experience in the
development of the world electrical grids, advanced technologies and expertise in
key domains such as power electronics, ultra high voltage, direct current
interconnections, integration of renewables into the grid and network management

solutions. Alstom Grid has all the necessary advantages in terms of technologies,
manufacturing and people to continue to be a leading contributor to the smarter grids
of the future”, says Henri Poupart-Lafarge, President of Alstom Grid.
Products and Services
With “turnkey” solutions already offered by Alstom’s Transport and Power Sectors,
the creation of Alstom Grid enables Alstom to offer proposals based on integrated
technical solutions that link power generation with transmission. Comprising four
main business units - Products, Systems, Automation and Service - Alstom Grid
provides a comprehensive service offering in the field of transmission.
• Products
The Products business designs and manufactures a comprehensive range of
electrical equipment covering the whole high to ultra-high-voltage electricity
transmission chain (from 52 kV to 800 kV in direct current and 1200kV in alternating
current) which transmits electricity from the power stations via the high-voltage
substations and electrical transmission grids to the large end users and distribution
network. It includes power transformers, gas-insulated substations (GIS), and air-
insulated switchgear (AIS).
• Systems
Systems supplies the grid management systems and manages the big turnkey
projects – such as the contract for an extra-high-voltage substation for the
Anpara power station in India, or the completion of the Gulf’s largest HVDC
converter station (3 x 600 MW) and the network management system that
connects the Gulf Cooperation Council International Authority’s (GCCIA) six
member states’ energy systems.
• Automation
The Automation business plays an essential role in Alstom Grid's business. It

provides utilities and industry with the mission-critical software systems and

equipment needed to manage the flow of electricity in transmission and distribution

grids and to protect and control substations. The Sector is the global leader in
network management systems with major references throughout the world.
• Service
As in all businesses associated with the creation of infrastructure, the Service

business of Alstom Grid provides a range of after-sales operations (repair,
refurbishment, spare parts) and consultancy, assessment and training services.
Corporate Vision
To be the reference group in high tech solutions for energy and transport, shaping a
sustainable future for the planet.
Corporate Mission
• To provide energy and transport infrastructures which successfully combine
economic development, social progress and respect of the environment.
• To design reliable solutions needed to meet the challenge, through innovation
and excellence in project execution.
• To achieve prominence in developing, adopting and assimilating state-of-the-
art technologies for competitive advantage.
• To foster a culture of participation and innovation for employees’ growth and
contribution through a climate of fairness and transparency in operation.
Core Values
TRUST because…
Alstom, with its activities, several management structures, units, production sites

and countries, is by definition a complex company. Mutual trust between colleagues

and management is essential for the proper conduct of our business and the efficient
management of our projects. This trust is built on the responsibility given to each
decision-maker, the delegation of authority given, the belief of of all employees in the
importance of their role in the Group’s well-being and development. It is also built on
the openness of each individual to his or her professional environment, ensuring
transparency, which is vital in the management of risks.
TEAM because…
Alstom’s business is based on delivering projects which require our collective
discipline and efforts to execute them successfully, and networking to ensure we
take full advantage of all the competencies available. This team spirit, supported by
the desire to develop each employee, extends to our collaboration with our partners
and customers.
ACTION because…
Alstom commits to delivering products and services to its customers which meet
their expectations in terms of price, quality and delivery schedules. To meet our
commitments to our customers, action is a priority for all of us. Action is built on
strategic thinking, established at Group and Sector level, and underlined by our
sense of customer orientation, integrated into our daily activities and into each
project. Action involves adopting a sense of urgency in our activities, speed of
execution to differentiate us from our competitors, and the ability to report ensuring
the achievement of our business objectives. Leadership is essential to drive action.
RISK MANAGEMENT POLICY
ALSTOM is committed to effective management of risks across the organization by

aligning its risk management strategy to its business objectives through instituting a
risk management structure for timely identification assessment, mitigating,

monitoring and reporting of risks. Risk Management at ALSTOM is the responsibility

of every employee both individually as well as collectively.
ORGANIZATION STRUCTURE
ALSTOM India
Sunand Sharma
Country President - ALSTOM India
Chairman - ALSTOM Projects India Limited
Tel: +91(120) 473 1100

Fax: +91(120) 473 1200
Rachana Panda
Country Communications Director
Tel: +91(120) 473 1100

Fax: +91(120) 473 1200
Email: in.corporatecommunications@power.alstom.com
Corporate Office
ALSTOM Projects India Ltd.
IHDP Building, Plot # 7
Sector 127, Noida, U.P. 201301
India
ALSTOM India - Power Generation
Sales, Marketing and Director - Thermal Systems -

New Business Development Gas Activity
Mr. Peter Kunz
ALSTOM Projects India Limited

IHDP Building, ALSTOM Projects India Limited

Plot #7, Sector 127, Noida 201 301, IHDP Building,
Uttar Pradesh Plot #7, Sector 127, Noida 201 301,
Uttar Pradesh
Tel : +91(120) 473 1100
Fax: +91(120) 473 1200 Tel : +91(120) 473 1100
Fax: +91(120) 473 1200
Boilers
Mr. Shiv Nimbargi Hydro
Director -Thermal Products & Vice Mr. Alain Spohr
President - Director - Hydro
Coal Mills
ALSTOM Projects India Limited Maneja, Vadodara - 390 013
IHDP Building, Gujarat
Plot #7, Sector 127, Noida 201 301,
Uttar Pradesh Tel : +91(265) 6613 100
Fax: +91(265) 6613 080
Tel : +91(120) 473 1100
Fax: +91(120) 473 1200 Turbomachines Group (TMG)
Mr. S Swaminathan
Environment Control Systems Director - TMG
(ECS)
Mr. Christian Mennesson ALSTOM Projects India Limited
Director - ECS Tech Boulevard, Tower C,
ALSTOM Projects India Limited Uttar Pradesh
Millenium City, IT Park,
Tower II, 10&11th Floor, Tel : +91(120) 473 1000
Block DN, Plot 62, Sector V, Fax: +91(120) 473 1200
Salt Lake City, Kolkata - 700 091
Tel : +91(33)4411 3000
ALSTOM India - Power Service

Mr. Ravi Kapoor

Director - Power Service

IHDP Building,
Uttar Pradesh
Tel : +91(120) 473 1100

Fax: +91(120) 473 1200
ALSTOM India - Transport
Mr. Jojo Alexander

Director - Transport

IHDP Building,Plot #7, Sector 127, Noida 201 301, Uttar Pradesh
Tel : +91(120) 473 1100

Fax: +91(120) 473 1200

INDUSTRY ANALYSIS
Introduction

The critical role played by the power industry in the economic progress of a country
has to be emphasized. A self sufficient power industry is vital for a nation to achieve
economic stability.
Indian Power Industry
Before Independence
The British controlled the Indian power industry firmly before Independence. The
then legal and policy framework was conducive to private ownership, with not much
regulation with regard to operational safety.
Post Independence
Immediately after Independence, the country was faced with capacity restraint. India
adopted a socialist structure for economic growth and all the major industries were
controlled by public sector enterprises. By 1970's India had nationalized most of its
energy assets, due to its commitment to social goals. By the late 1980's the Indian
economy felt the strain of the socialist agenda followed since independence. Faced
with a serious deterioration in public finance and balance of payment crisis, the
Union government as part of its policy of economic liberalization allowed greater
investment by private sector in the power industry.
Power
Constitutional Position
Power as a matter of legislative and executive competence, falls in the Concurrent
List (List III of the Seventh Schedule to the Constitution of India).Both the Parliament
and state legislatures have the rights to pass laws on the matter and any law passed
by the Parliament overrides the existing state laws unless
• The existing law is conserved or saved from such a repeal or

• A law passed by the state legislature receives acknowledgment from the
President of India.

• Post Liberalization
Understanding the critical part played by the power industry, the Union
government passed several laws and restructured the Power Industry to gear
it up to meet the challenges posed to the Indian economy post Liberalization.
Power Infrastructure in India:

The power industry in India derives its funds and financing from the government,
some private players that have entered the market recently, World Bank, public
issues and other global funds. The Power Ministry India has set up Power Finance
Corporation of India that looks after the financing of the power sector in India. The
Power Finance Corporation Limited provides finance to major power projects in India
for power generation and conversion, distribution and supply of power in India.
Power Finance Corporation (PFC) Ltd India also looks after the installation of any
new power projects as well as renovation of an existing power project India. The
PFC in association with central electricity authority and the ministry of power
facilitates the development in infrastructure of the power sector India. They have
taken up construction of mega power projects that will answer to the power shortage
in various states through power transmission through regional and national power
grids.
Power Supply Units India:

Power is derived from various sources in India. These include thermal power,
hydropower or hydroelectricity, solar power, biogas energy, wind power etc. the
distribution of the power generated is undertaken by Rural Electrification Corporation
for electricity power supply to the rural areas, North Eastern Electric Power
Corporation for electricity supply to the North East India regions and the Power Grid
Corporation of India Limited for an all India supply of electrical power in India.
 Thermal Power in India is mainly generated through coal, gas and oil. India
coal power forms a majority share of the source of power supply in India. The
electric power in India is generated at various thermal power stations in India.

The power generated at these thermal power plants is then distributed all
over India through a network of powergrid at regional and national levels. The
power ministry organization responsible for the thermal power management in
India is the NTPC.
 Hydropower is India is one of the mega power generators in India. Various
hydropower projects and hydro power plants have been set up by the ministry
of power for generation of hydro power in India. Various dams and reservoirs
are constructed on major rivers and the kinetic energy of the flowing water is
utilized to generate hydroelectricity. The power generator here is the running
water. The hydroelectric power plants and the hydro power generation
companies are managed by the National Hydro Electric Power Corporation
(NHPC).
 Wind Power in India is available in plenty as India witnesses high intensity
winds in various regions due to the topographical diversity in India. Efforts
have been made to utilize this natural source of energy available free of cost
for wind power generation. Huge wind energy farms have been set up by the
government for tapping the wind energy by using gigantic windmills and them
converting the kinetic energy of the wind into electricity by the use of power
converters. The wind power advantages start with the very fact that a wind
energy power plant does not require much infrastructure input and the raw
material i.e. wind itself is available free of cost.
 Solar Power in India is being utilized to generate electricity on smaller scale
by setting up massive solar panels and capturing the solar power. Solar
power India is also being utilized by the power companies in India to generate
solar energy for domestic and small industrial uses.
 Nuclear Power in India is generated at huge nuclear power plants and
nuclear power stations in India. A nuclear power plant generates the
electricity using nuclear energy. All the nuclear power plants in India are
managed by the Nuclear Power Corp of India Ltd (NPCL). The electricity from
all India nuclear plants is distributed by the NPCL as per the nuclear power
project scheme.

 Biogas Production in India is still in its infancy stage. Also the number of
biogas plants in India is still very low. India being the largest domestic cattle
producer has plenty of biogas fuel and thus utilization of the fuel for mass
biogas production by setting up more biogas plants in India would solve the
power shortage problem to some extend.
Power Companies in India:

Many government as well as private organizations have taken up the task of power
generation in India. The major Indian power companies playing prime are:
 Bhakra Beas Management Board

 Enercon Systems India
 Essar Group
 GMR Group
 Gujarat State Petroleum Corporation Ltd
 Jindal Steel & Power Limited
 Karnataka Power Transmission Corporation Limited (KPTCL)
 Karnataka Renewable Energy Development Limited
 Konarka
 Magnum Power Generation Limited
 Nippo Batteries
 Reliance Energy Ltd.
 Shri Shakti
 Durgapur Projects Limited
 Satluj Jal Vidyut Nigam Ltd.
 United Power
 Ventral Systems Pvt. Ltd.
 Enron India Power Plant
 Celetronix Power India
 Caterpillar Power India
 Alstom Power India
 Thorium Power India

 GE Power Controls India

 Green Power India
Top ALSTOM Competitors
Companies Location
GE Energy Atlanta, GA
Siemens
Munich, Germany
Aktiengesellschaft
Vossloh AG Werdohl, Germany
Competitors
• Hyundai Rotem
• Bombardier
• Ansaldobreda
• CAF
• Siemens Transportation Systems
• Stadler
• Kawasaki Heavy Industries
• Nippon Sharyo
• Mitsubishi Heavy Industries
• Metrovagonmash
• Ansaldo STS for signaling, tunrnkey systems, and rail operations
Industries Where ALSTOM Competes
• Power Generation & Storage

• Machinery Manufacturing
• Automotive & Transport
• Railroad Equipment Manufacturing
• Electronics
• Electrical Products
Power Organisation

Alstom Power - one unique business regrouped into six activities
Thermal Systems
Thermal Systems is responsible for all types of plant solutions: integrating Alstom
Power products into highly efficient and highly competitive power plants for all types
of fuels.
• Thermal Products
Thermal Products Business designs, manufactures and sells the individual
equipment that forms the heart of the thermal power plant.
• Thermal Services
Thermal Services Business has the mission to provide operators of the
installed base worldwide with the most optimised technology and service
solutions.
• Hydro Power
Hydro Business offers standard and customised products, turnkey solutions
and a full range of services that cover all hydro schemes: from large to small,
including run-of-river and pumped storage applications.
• Wind Power
Wind Power Business designs, assembles, installs, and provides Operation &
Maintenance (O&M) services for wind turbines. It also conducts site
development activities and can provide turnkey wind farm solutions.
• Power Automation & Controls
Power Automation & Controls Business delivers automation and control
systems, products and solutions as well as associated support services for all
types of generation units.
Clean Power technologies for various industries

Environment protection is now at the top of the business agenda. In this field Alstom
can also make a real difference by helping industrial plant operators to choose the
right and balanced portfolio of energy sources.

Aluminium
Alstom's Special Applications meet the power demand of aluminium industry
customers.
Desalination
Very competitive power and water costs thanks to Alstom efficient power plant and
integrated desalination plant.
District heating
Combined production of heat and power has enormous potential. Its basic efficiency
means reduced pollution, especially for areas of high population density areas.
Iron and steel
Alstom gas power plants can generate electricity using gases with low-caloric
heating value from steel making various processes.
Products & Systems for a New Power Plant
Alstom has an unrivalled expertise in project management for all kinds of power
generation systems, from small to large, from single equipment to complete turnkey
solutions.
Alstom’s unique offering brings real value to our customers. With our innovative
plant integration concept, we help operators to maximise their plants’ performance,
while fully complying with environmental regulations and obligations.
Gas
Clean & integrated power generation solutions with high operational flexibility
Geothermal
Alstom offers modular and adaptable geothermal power solutions based on state-of-
the-art technology.

Hydro
Alstom Hydro is the world's leading hydro power equipment supplier and service
provider.
Nuclear
Alstom solutions cover the full power conversion process for any major nuclear
steam supply system (NSSS) available on the market.
Steam (coal, oil & biomass)
The cleaner Steam technology is the obvious choice
Wind
Alstom is fully committed to developing wind power into an increasingly competitive

source of energy.
Innovation
Alstom continuously designs and produces new processes, products and services.
Alstom increased R&D investment by 21% in financial year 2007/08.
Innovation examples
• 46 engineering and research centres across the world

• 100 partnerships with universities/research centres in R&D
• 1750 MW is the output of the world's largest turbine ever built for the
conventional island of the new generation EPR (European Pressurised
Reactor) power plant at Flamanville (France)
• 574.8 km/h was the world speed rail record achieved in April 2007
• 250,000 tons of CO2 saved through the installation of a new dry-tower based
cooling system at the Matra power plant (Hungary)

• Six carbon capture pilot plants in Europe and USA.
SWOT ANALYSIS OF THE ORGANIZATION:

STRENGTH OPPORTUNITIES
• Leadership position and • Diversification

experience in Domestic market.  Leverage resources and
• Large pool of skilled and competencies in related
experienced manpower. industries with growth
• Unmatched experience of potential. e.g….Nuclear,
domestic environment. Power, Solar
• Well proven specifications and • Internationalization of services
design practices • Move up the Value Chain
• Strong vendor development • Vertical Integration
practice  Partnership into production
• Past tracks record as qualification and operation.
criteria.
• Cost competitiveness in Overseas
Market.
• Ability to leverage competencies
for services to new sector……
power etc.
• End to end services from concept
to commissioning.
• Value added services.
WEAKNESS THREATS
• Attrition rate is high among • Tough qualification criteria with

youngsters. large capital requirement.
• Challenges availability • Legal and Taxation issues.
• Majority projects on competitive
tendering route.
• Considerable growth in
competition in domestic sector
from other private players.
• Strong Backward integration and
diversification efforts by major
competitors giving them
competitive advantage over
ALSTOM.
• Limited competencies in taxation
and law.

FINANCIAL ANALYSIS
LIQUIDITY RATIO:

It is extremely essential for a firm to be able to meet its obligations as they become
due. Liquidity ratios measure the ability of the firm to meet its current obligations. A
firm should make sure that it does not suffer from lack of liquidity, and also that it
does not suffer from excess of liquidity.
CURRENT RATIO:
Current ratios may be defined as the relationship between current assets and current
liabilities. This ratio is also known as Working capital ratios. This ratio is a measure of
general liquidity and is most widely used to make the analysis of a short-term
financial position or liquidity of a firm.
Current Asset
Current Ratio =
Current Liabilities
YEAR CURRENT
RATIO
2007-2008 1.08
2008-2009 1.01
2009-2010 1.04
Interpretation:
The current ratio gradually decreasing from 1.08(2008) to 1.01(2009) however
during the year 2009 – 10, the Current ratio increased from 1.01 to 1.04 (2010).
Though there has been increase in the current assets and current liabilities but the
increase in the current liability is more than the current assets that is why the current
ratio is decreasing. Thus it can be seen that for efficient working capital

management the company can bring down the current ratio however keeping in view
its market forces and need based requirements.
ACID TEST/ QUICK RATIO

The ratio is similar to the current ratio. The only difference is, it excludes inventory.
Among the current assets inventory is generally the least liquid asset as it needs
more time to be converted into cash when compared to other assets. The term liquid
asset refers to current assets, which can be converted in to cash immediately or at a
short notice. It is computed as follows;
Quick or Liquid Assets

Quick Ratio =
Current liabilities
YEAR QUICK RATIO
2007-2008 1.04
2008-2009 0.98
2009-2010 0.95
Interpretation:
As, this ratio is marginally near to the standard ratio 1:1 which means that there is
not any liquidity problem in the firm. The firm is holding less of inventory and more of
cash. If the ratio is slightly neat to 1 then, it is considered reasonable but it should
not be exceptionally high as it indicates idle cash resources.
ACTIVITY RATIO:

The ratios compounded under this group indicate the efficiency of the organization to
use the various kinds of assets by converting them the form of sale. This ratio also
called as activity ratio or assets management ratio.
INVENTORY TURNOVER RATIO (STOCK TURNOVER RATIO)

Inventory turnover ratio indicates the efficiency of the firm in producing and selling the
product. It is calculated by dividing the cost of goods sold by the average inventory:
Inventory Turnover = Cost of Goods sold
Average Inventory
The average inventory is the average of opening and closing balance of inventory
YEAR ITR
2007-2008 34.23
2008-2009 43.70
2009-2010 10.74
Interpretation:
By analyzing the 3years data we see that the ratios are decreasing. By this decrease
we can say that the company’s inventory turnover ratio is coming down favorably
indicating better inventory management by the company. The reason for decrease in
the ratio is cost of goods sold has not increased whereas there has been increase in
the inventory held by the company which has led to the decrease in the ratio.
DEBTORS TURN OVER RATIO

This ratio indicates the number of times that the firm’s average accounts receivables
balances passes through sales during the year under consideration.
This ratio is calculated by using the formulae:
Sundry Debts

Debtors Turnover Ratio =

(Month’s turnover) Turnover
YEAR DTR
2007-2008 2.96
2008-2009 3.84
2009-2010 3.27
Interpretation:
The debtor’s turnover ratio period are gradually increasing indicating that the
company is decreasing its debts. Hence, the outstanding is decreasing and the
company is becoming cash rich. Therefore, there is an increase in working capital
efficiency. Company is getting its money from Debtors in time.
FIXED ASSET TURNOVER RATIO
Fixed asset turnover is the ratio of sales (on the Profit and loss account) to the value
of fixed assets (on the balance sheet). It indicates how well the business is using its
fixed assets to generate sales.
Fixed Asset Turnover Ratio = Turnover
Fixed assets
YEAR FTR
2007-2008 4.37
2008-2009 4.91
2009-2010 3.50
Interpretation: When we look at ratios, we see that the ratio is increasing over the
years that denoting that less money is tied up in the fixed assets. But sudden decline

in ratio in 2010 indicates that the business is over-invested in plant, equipment, or

other fixed assets.
LEVERAGE RATIO:
The short term creditors, like bankers and suppliers of raw material, are more
concerned with the firm‘s current debt paying ability. So if we want to know the
overall health of the company, the long term debt paying ability has to be taken into
consideration. To judge the long term financial position of the firm, financial
leverage, or capital structure ratios are calculated. These ratios indicate the mix of
funds provided by owners and lenders. As a general rule, there should be an
appropriate mix of debt and owner’s equity in financing the firm’s assets.
INTEREST COVERAGE RATIO

The interest coverage ratio is a measure of the number of times a company could
make the interest payments on its debt with its earnings before interest and taxes,
also known as EBIT. The interest coverage ratio or the times-interest earned is used
to test the firm’s debt – servicing capacity.
The lower the interest coverage ratio, the higher the company's debt burden and the
greater the possibility of bankruptcy or default.
INTEREST COVERAGE RATIO = Earning before Interest and Tax

--------------------------------------------
Interest
YEAR INTEREST
COVERAGE RATIO
2007-2008 832.45
2008-2009 1965.18
2009-2010 1917.39
Interpretation:
A progressive increase in the interest coverage ratio indicates satisfactory
movement of the ratio. The ratios of company show that there is enough earnings to
pay its interest expense. Because earnings rise and fall depending on market and
economic conditions, it would be preferable if the company’s earnings were much
higher than interest expense in most years.
DEBT EQUTIY RATIO AND DEBT RATIO

The debt-to-equity ratio (D/E) is a financial ratio indicating the relative proportion of
shareholders' equity and debt used to finance a company's assets.
Debt /Equity = Debt (liabilities) / Net Worth

The firm may be interested in knowing the proportion of the interest – bearing debt in
the capital structure. Debt ratio is calculated by dividing total debt by capital
employed or net assets
Debt Ratio = Total Debt
Capital Employed
Capital employed = Net assets = Net Fixed assets + Net Current assets
AS THE COMPANY HAS NO DEBT, i.e. DEBT = 0. SO, THESE RATIO’S CANNOT
BE CALCULATED.
PROFITABILITY RATIO:
A company should earn profits to survive and grow over a long period of time.
A class of financial metrics that are used to assess a business's ability to

generate earnings as compared to its expenses and other relevant costs incurred
during a specific period of time. For most of these ratios, having a higher value
relative to a competitor's ratio or the same ratio from a previous period is indicative
that the company is doing well.
OPERATING PROFIT RATIO

The operating profit margin ratio indicates how much profit a company makes after
paying for variable costs of production such as wages, raw materials, etc. It is
expressed as a percentage of sales and shows the efficiency of a company
controlling the costs and expenses associated with business operations. Terms used
to describe operating profit margin ratios this includes operating margin, operating
income margin, operating profit margin or return on sales (ROS).
PBT-OTHER INCOME * 100

Operating profit ratio =
Turnover
YEAR OPERATING
PROFIT RATIO
2007-2008 6.63
2008-2009 8.66
2009-2010 12.39
Interpretation:
Over the years we see that the operating profit ratio is increasing. Hence, operating
profits are increasing i.e. there are more profits in the company. A high operating
profit margin means that the company has good cost control and/or that sales are
increasing faster than costs, which is the optimal situation for the company.
NET PROFIT RATIO
Net profit ratio is the ratio of net profit to net sales. It is also known as profit margin.
It is usually expressed as percentage. Net profit is obtained when operating

expenses, interest and taxes are subtracted from the gross profit. The net profit
margin ratio is measured by dividing after taxed by sales. If the net margin is
inadequate, the firm will fail to achieve satisfactory return on shareholder s funds.
It is calculated as follows:
PAT
Net profit ratio = x100
Turnover
YEAR NET PROFIT

2007-2008 4.63
2008-2009 5.80
2009-2010 8.08
Interpretation:
The net profit margins increased gradually indicating increase in profitability in %
terms.
Increase in the net profit margin shows how much of each sales dollar shows up as
net income after all expenses are paid. For example, if the net profit margin is 5%
that means that 5 cents of every dollar is profit. The net profit margin measures
profitability after consideration of all expenses including taxes, interest, and
depreciation.
The company should reduce the over heads to show this increase.
GROSS PROFIT MARGIN

The first profitability ratio is relationship to sales is known as Gross profit margin. It is
calculated by dividing Gross profit by sales.

Gross Profit Margin = Sales - Cost of Goods sold

Sales
The gross profit margin reflects the efficiency with which management produces each
unit of product. This ratio indicates the average spread between the cost of good sold
and the sales revenue.
YEAR GROSS PROFIT
2007-2008 5.10
2008-2009 7.22
2009-2010 10.35
Interpretation:
The above table shows the relationship of gross profit to net sales in the term of
percentage. The company ratio is increasing over the years indicating a sign of good
management.
This ratio shows how well a company controls the cost of its inventory and the
manufacturing of its products and subsequently passes on the costs to its
customers.
CASH FLOWS
(Rs. In Crores)
CASH FLOWS 2010-2009 2009-2008 2008-2007

Net cash Flow From

234.04 188.76 355.42
Operating Activity(Rs.)
Net Cash Flow From
-44.46 -154.32 -43.55
Investing Activities(Rs.)
Net cash Flow From
-79.16 -63.38 -79.60
Financing Activities.(Rs.)
Interpretation:
A look at the table shows that the cash flow from operating activities has increased
considerably over the previous year. Operating cash flows are directly related to sale
and production of the firm's products/services. The net cash flow from investing
activities is increasing showing net cash is increasing considerably. The net cash flow
from financing activities has been consistently increasing showing more number of
dividends paid. The company has managed its cash flows very well in spite of the fact
that the economy was hit by the recession.

THEORETICAL
FRAMEWORK
ROLE OF HUMAN RESOURCE DEPARTMENT

AT ALSTOM

Human resource is a term with which many organizations describe the combination
of traditionally administrative personnel functions with performance management,
Employee Relations and resource planning. The field draws upon concepts
developed in Industrial/Organizational Psychology.
The objective of Human Resources is to maximize the return on investment from the
organization's human capital and minimize financial risk. It is the responsibility of
human resource managers to conduct these activities in an effective, legal, fair, and
consistent manner.
HR MISSION
To acquire and maintain highly talented and motivated reservoir of

multidisciplinary human resources to meet the needs of the organization,
and to continuously create new opportunities for employees to upgrade
their capabilities and channelize their potential for growth leading to Total
Quality People.
ALSTOM HR –ORGANOGRAM FUNCTION

1. Legal cell
1.1 disciplinary cases
1.2 court cases
1.3 arbitration cases
1.4 immovable property return
1.5 legal advise to management
2. Establishment
2.1 foreign assignment & pay fix
2.2 study leave
2.3 induction, resignation.
2.4 transfer and posting
2.5 deputation cases
2.6 PF, Gratuity & pension
2.7 risk management

2.8 retirement gifts and functions
2.9 leave management and leave adjustment
2.10 leave data for balance sheet.
2.11 loans, fixation etc.
3. Recruitment , manpower planning , SC/ST matters, cpis
4. Management development department
4.1 appraisals
4.2 promotions
4.3 probation clearance.
5. Rules group
5.1 rules and policies
5.2 interactions with other PSUs
6. Field personnel cell.
ORGANISATION STRUCTURE / FUNCTIONS OF THE

DIVISION
In order to carryout functions of the division, following three departments have been
formed:
 HR Planning & Management (HR P&M)

 HR Rules & Welfare (HR R&W)
 HR Training & Development (HR T&D)
1. Functions of HR Planning & Management

 Recruitment and out-sourcing
 Manpower Planning
 CPIS
 SC/ST Matters
 Legal Matters including inhouse disciplinary cases

 Property Returns
 Induction, Separation
 Transfers, Foreign Assignments
 Leave Matters
 Pay fixation and Increments
 Pension matters
 Ex-employees matters
 Deputation cases
 Attendance
 Loans & Advances

2. Functions of HR Rules & Welfare
 IR Matters
 Rules & Policies
 Liaison with associations and authorities
 Long Term Settlement and Other matters dealing with
ALSTOMOA/EA
 Welfare matters
3. Functions of HR Training & Development

 Training need identification & preparation of training calendar
 In-house training programmes
 External nominations
 SBU Training Programmes
 Training Centre Management
 Training & Establishment functions of Management Trainees
 Training of apprentices
 Training of Vocational Trainees
 Appraisals

 Promotions
 Probation Clearances
 Promotion Rules & Policies
 360 degree Feedback
HRP&M (ESTABLISHMENT)
INDUCTION
Induction is an important part of the process of socialization of a new organizational
member or employee. It covers the activities in introducing a new employee to the
organization and his work unit. The induction program at ALSTOM generally takes
two to three days to complete and this process is handled by persons who are fully
conversant with the course contents.
SEPARATION
Separation of an employee from the organization occurs when his service
agreement with the organization comes to an end because of one reason or the
other. Separations arise from resignation, dismissal and retirement.
TRANFERS
Transfer may be defined as a change in job within the organization where the new
job is substantially equal to the old in terms of pay, status and responsibilities.
FOREIGN ASSIGNMENT CELL

Foreign cell lays down the steps in the activities involved in the mobilization and
demobilization of employees deputed on overseas assignments/tour/posting abroad.

HR – RULES:
The basic purpose of rule group is formulation of various rules keeping in view
various acts and Companies interest in general. Apart from that rules group also
plays a pivotal role in interacting with various PSU’s.
LEAVE GROUP
Leave cannot be claimed as a matter of right. Discretion is reserved to the authority
empowered to the sanction leave, to refuse or revoke leave at any time according to
the exigencies of the company’s work.
The various types of leave given below:
1 Earned Leave
2. Sick Leave
3. Casual Leave
4. Maternity Leave
5. Abortion Leave
6. Special Leave
7. Study leave
8. Quarantine Leave
9. Leave without pay
10. Compensatory off
11. Other absence.
COMPENSATION&BENEFITS
Compensation of employees for their services is an important responsibility of
human resource management. Every organization must offer worthy benefits to
attract and retain talented employees with the organization. One of the benefits that
the organization wants to give is the annual increment. Annual increment is granted
to an employee on time scale of pay upon his completing the initial/extended period
of probation, where probation is prescribed upon his rendering one year’s
continuous and approved service, and in either case, to the satisfaction of the
appropriate superior officer and having earned minimum appraisal rating of

satisfactory(3) during the increment year.
LOANS & ADVANCES

Employees of the company are eligible for the grant of various loans and advances
in accordance with the conditions specified under the provisions of respective rules.
The sanction of advances will be subject to the availability of funds and allocation of
budget for the purpose.
• Conveyance advance
• Marriage advance
• House building advance
• House rent allowance

• LTC
HR IR & WELFARE
Annual health check up- The purpose of this work instruction is to identify key steps
involved in the Periodic Medical Check-up of the employees and his/her spouse in
such Hospitals as nominated by the Company.
Annual gift - The purpose of this procedure is to facilitate identification of gift item,
early selection and distribution to the eligible employees.
This procedure covers getting administrative approval, inviting suggestion for items,
short listing, placing order for procurement and distribution of the annual gift items to
eligible employees.
Long service awards- The purpose of this procedure is to enlist activities and
processes involved in the various stages of distribution of Long Service Awards
which include identification of Long Service Award Mementos, its final selection,

procurement and distribution to eligible employees as per the approved norms and
other incidental activities connected therewith.
TRAINING & DEVELOPMENT

Training is the act of increasing the knowledge and skills of an employee for doing a
particular job. Training involves the development of skills that are usually necessary
to perform a specific job. Its purpose is to fulfil competency gaps by bringing about
desired changes in the knowledge, skills and attitude of the employees to enable
them to accomplish the organisational goals effectively, besides facilitating their own
development. Training is a continuous process as it is equally necessary for the old
employees whenever new machines and equipment are introduced or there is a
change in the techniques of doing things. There should be a proper training
programme that should attempt to bring positive changes in the knowledge, skills
and attitudes of the workers..
MANAGEMENT DEVELOPMENT DEPARTMENT (MDD)

Management development consists of all activities by which executives learn to
improve their behavior and performance. It is designed to improve the effectiveness
of managers in their present jobs and to prepare them for higher jobs in the future.
Management development is the process by which managers acquire not only skills
and competencies in their present jobs but also capabilities in their present jobs but
also capabilities for future managerial tasks of increasing difficulty and scope. Thus,
executive development denotes planned efforts to improve current and future
performance of the organization. This department review and update Promotion
Policy arising out of changes in factors having impact on career progression of
employees such as insertion of new levels /pay scales, changes in minimum
qualifying period, creation of specialist pool etc. There are two sets of Promotion
Rules/policies being operated in the Company, one relating to employees in levels 1
to 9 referred to as staff and other for employees in levels 12 to 20 called officers.
ADMINISTRATION
Administration is a very vital part in the Engineers India limited. This department
provides administrative services to all entities, divisions and department of the
organization The services include financial management and information technology
support, human resources management, library and research assistance, facilities
management, procurement, printing and graphics support, security, and mail and
messenger operations.
RECRUITMENT
Recruitment is the development and maintenance of adequate manpower resources.
It involves the creation of a pool of available labor upon whom the organization can
draw when it needs additional employees. Recruitment refers to the attempt of
getting interested applicants and creating of a pool of prospective employees so that
the management can select the right person for the right job from this pool. It is a
linking activity that brings together those offering jobs and those seeking jobs. The
recruitment is centrally done at headquarters. It covers recruitment for all divisions
and departments of the company at headquarters, construction sites, regional
offices, procurement offices, branch offices. This includes induction of regular
employees in all levels and pay scales and all types of positions. i.e.,General, SC,
ST, OBC, ex-servicemen, and physically handicapped.

PERFORMANCE MANAGEMENT SYSTEM
An integrated approach to ensuring that an employee’s performance supports

and contributes to the organizations strategic aims.
A management process for ensuring employees is focusing their work efforts in
ways that contribute to achieving the agency’s mission. It consists of three phases:
(a) Setting expectations for employee performance,
(b) Maintaining a dialogue between supervisor and employee to keep performance
on track, and
(c) Measuring actual performance relative to performance expectations.
Performance management is a management tool used to measure employee
performance and extend rewards to employees who achieve company objectives.
Many companies implement a performance management system to set standards
and expectations for employees at all levels in the organization.
THE PURPOSE OF PERFORMANCE MANAGEMENT

SYSTEM:
1 1. The work performed by employees accomplishes the work of the agency;
2 2. Employees have a clear understanding of the quality and quantity of work
expected from them;
3 3. Employees receive ongoing information about how effectively they are
performing relative to expectations;
4 4. Awards and salary increases based on employee performance are
distributed accordingly;
5 5. Opportunities for employee development are identified; and
6 6. Employee performance that does not meet expectations is addressed.

CHARACTERISTICS OF PMS:
Appraisals Match the Job Descriptions
Performance appraisals should match the job descriptions and standards set for
performance objectives.
1. Appraisals are Legally Compliant
Appraisals should be able to stand legal tests of reliability (questions yield the
same results for all employees if repeated more than once) and validity (does the
appraisal measure what it is designed to measure).
Appraisers Should be Trained
The supervisor or manager conducting the appraisal should be trained in the use of
the evaluation tool and conducting the appraisal.
Appraisal Systems Require Follow-Up
It is important to the company and the employee to provide consistent monitoring

and follow-up after the formal appraisal is given. If the employee scored high with
little need for improvement, do not take that performance for granted.
ADVANTAGES OF IDEAL PMS:

Goal Setting
Performance appraisals should help employees understand how their job

responsibilities ultimately affect the overall objectives of the organization. The
appraisal process emphasizes goal setting by managers and employees. If done
properly, a manager can identify and help correct problems with minimal
disruptions to business operations.
Communication
Establishing a solid performance appraisal system encourages good

communication between managers and employees. The ideal system is
structured so employees have ample opportunity to learn and grow.
Shortcomings should be discussed clearly and openly as they happen, rather
than at an obscure time in the future.
Motivation
Regular performance appraisals allow management to stay informed of

employee accomplishments and progress on assigned tasks. When results are
tied directly to employee rewards, the appraisal process can be used as a
motivational tool for increased productivity and efficiency. In the ideal appraisal
system, rewards are delivered to employees as promised, reviews are fair and
consistent, and the practice of regular feedback is considered beneficial for all
involved.
DISADVANTAGES:
Risk of Internal Competition
Under this system, employees compete with each other for job status, position
and pay. This could amount to backstabbing, failure among team members to
communicate efficiently and strong employee rivalry.
Favoritism
Managers and supervisors tend to trust and depend on one employee more than
the others.

Expensive and Time-Consuming
Performance management systems are costly, requiring a lot of administrative

work, patience and time. Usually, the areas impacted negatively include the
human resources department, finance and organizational development.
Performance management demands equipping employees with the "right" skills
and knowledge. This means conducting extensive training, retraining and career
development workshops for every division and employee level. This turns out a
costly process.
Manager's Dilemma
The manager is unable to perform his tasks efficiently because he spends too
much time supervising employees about their job functions. He is faced with
value-based appraisal systems. It becomes challenging and tough to decide
value and performance indicators for measurement.
Convoluted and Bureaucratic
The company ends up hiring and training new personnel. Performance

management creates new organizational layers. The employee population
increases. Now, instead of one team to do a project, two teams are doing it. This
actually affects the financial structure of the organization.
COMPONENTS OF PMS:
Job Expectations & Goals
An important component of a performance management system involves the job

expectations and goals for each position in the company. Each department in the
company usually has different expectations for its employees based on the
requirements for the positions in the department.

Timely Reviews & Feedback
Performance management systems do not benefit a company unless a timely

employee review and feedback system is implemented in the program. Timely
employee reviews and feedback sessions are dependent on the company's
business operations and human resource guidelines.
Performance Rewards
Performance awards are an important part of the performance management

system. Employees are best motivated by the thought of earning rewards for
their actions, whether financial rewards or another form of benefit.
Training & Coaching
Employees that do not meet the standards for performance rewards may need
additional training or coaching by their superiors to improve their job skills. Performance
reviews will be used as a starting point for the additional training; subsequent
performance reviews may be scheduled to see how well the employee improved from
the initial review.

THE PROCESS OF MANAGING PERFORMANCE:

Supervisors and managers are responsible for managing the performance of their
employees. Each agency’s policy shall specify how the three phases of performance
management will be carried out. Agencies shall adopt performance management
practices that are consistent with the requirements of this policy and that best fit the
nature of the work performed and the mission of the organization.
1 1. Communicating employee performance expectations
a. At the beginning of the agency’s twelve-month work cycle, supervisors shall
meet with their employees, establish expectations regarding their employees’
performance, specify how employees’ actual performance will be measured
and their success determined, and impart to them an understanding of how
meeting these expectations will contribute to the achievement of the agency’s
mission.
b. Performance expectations shall be written at the “meets expectations” level
(the midpoint of the state rating scale) and shall be documented on a form
defined by the agency – the “work plan.” (An agency may designate different
work-plan formats depending on the nature of the work.)
c. Work plans shall be signed and dated by both the supervisor and the
employee.
1 2. Maintaining ongoing performance dialogue

a. Employees shall be responsible for meeting their performance expectations.
b. Progress toward meeting expectations shall be measured, reported,
discussed, and documented throughout the work cycle.
c. Supervisors are expected to use appropriate supervisory techniques to
support employee efforts to meet or exceed their performance expectations.
d. When expectations change during the course of the work cycle, supervisors
shall communicate these changes and modify work plans as necessary.
Modifications shall be signed and dated by both the supervisor and the
employee.

2 3. Conducting annual performance appraisals

a. At the end of the work cycle, supervisors shall evaluate employees’
performance during the past year compared to their performance
expectations. They shall use verifiable information collected and documented
throughout the cycle to determine the extent to which actual performance has
met the expectations defined in the work plan.
b. The evaluation shall be documented on a standard form defined by the
agency – the “appraisal.” (An agency may define more than one standard
appraisal form based on the nature of the work being appraised.)
c. The annual performance appraisal shall use a 5-level rating scale for reporting
overall performance. A rating at the midpoint of the scale shall indicate that an
employee’s performance has met expectations. (Alternative rating scales are
permissible, provided they are convertible to a 5-level scale.)
d. Prior to discussing a completed performance appraisal (that is, an appraisal
containing ratings and descriptions of actual performance) with an employee,
a supervisor shall review the appraisal with the next-level manager to ensure
that ratings are appropriate and consistent.
e. Supervisors shall discuss the appraisals with their employees. Both supervisor
and employee shall sign and date the completed performance appraisal
indicating that the discussion has taken place.
2

PERFORMANCE MANAGEMENT SYSTEM FOR ALSTOM
PURPOSE:
The Performance Management System (PMS) aims to encourage the following:
 To facilitate achievement of organizational goals through a process of performance assessment
linked to company’s objectives.
 To facilitate fulfillment of individual aspirations and promotion of professional excellence.
 To encourage a two way communication process between the Appraisee and the Appraiser.
 To evaluate the suitability of the Appraisee to assume higher responsibilities along the hierarchy.
 To have a visible and transparent linkage with other HR system like rewards, training and
development etc.
The objective of the Performance Management system is to:
• Make the process of performance measurement & review, objective driven and documented
• Orient individual performance towards business plan
• Have mutually agreed goals and objectives
• Distinguish between different levels of performance
• Provide opportunity for mid-term review and course correction, if required
• Make the performance evaluation open and transparent
• Utilize the outcome of individual performance discussions for management planning & competence
development.

KEY ROLES IN PERFORMANCE MANAGEMENT SYSTEM:
APPRAISEE APPRAISER REVIEWER ACCEPTOR HR

An individual An individual An individual An individual HR to function
who is who assesses who is who typically is only as a
assessed as the responsible for appraiser for a facilitator in the
part of the performance of reviewing the group of entire process.
performance one or more entire Reviewers and
cycle. appraises that performance is the final
report to him. process and signing off
typically is authority.
appraiser’s
appraiser.
The key driver Helps manage Will ensure Will ensure Will facilitate
of the process performance objectivity, objectivity, the process.
and provides transparency transparency
continuous and and
feedback and consistency. consistency
coaching. Any escalated and resolve
grievances grievances
would be across various
settled by him. Reviewer
groups.
PMS FRAMEWORK:
Performance Period:
PMS will follow an April-March annual cycle aligned to the financial year. The cycle consists of the
following 3 phases:
• Performance planning
• Mid-year review
• Final performance review
Jan-
March

1st and 2nd week of April 2nd and 3rd week of October
Ongoing project performance planning and final review

OVERVIEW OF ON-LINE PERFORMANCE MANAGEMENT SYSTEM:
This is an on-line system in which

• Employee has to login with their user name and password.
• For ease of users, the Portal has been divided into five (5) sections, covering roles of HOD,
Appraisee, Appraiser, Reviewer and Acceptor. The provision for Self-Appraisal has been
included under the Appraisee Module wherein Appraisee has to fill up their Self-Appraisal at the
end of the appraisal cycle.
• In this all the apparaisee, appraiser, reviewer and acceptor work is done online
• Final performance and potential rating is done online
• Employee personal development plan details are sent to training department online only.
• Previous year appraisal can also be viewed online.
• More confidential, In order to maintain data security & confidentiality, Previous Year appraisal and
Rating Summary have been made Password protected.
SHORTCOMINGS OF PREVIOUS PERFORMANCE MANAGEMENT SYSTEM IN

ALSTOM:
• No goal setting is there in the previous system.
• Whole system was the end year activity
• Potential factors are generic. E.g.:
• INNOVATION: Demonstrating new ideas, approaches, changes and up gradation in

any and every aspect of work.
• JOB OUTPUT: This refers to the Quantity of output

• TIMELINESS: Meeting deadlines as per the schedule.
• Performance factors are generic. E.g.:
• PROFESSIONAL RENEWAL: Keeping himself up-to-date in his area of

specialization.
• INITIATIVE AND DRIVE: Pro-active
• LEADERSHIP FLAIR: The ability to inspire the respect, confidence and following of
his subordinates.
• Training needs were not highlighted
• There was no midyear review
• No weightage of performance and potential
CHARACTERISTICS OF PRESENT PERFORMANCE MANAGEMENT

SYSTEM:
 Target setting is there, which is to be achieved annually
 Training needs are highlighted
 Midyear review and feedback is there
 Final rating will be evaluated on the basis of weighted average scores of performance and
potential factors.

RESEARCH METHODOLOGY

OBJECTIVE: A STUDY OF PERFORMANCE MANAGEMENT SYSTEM IN ALSTOM.
• SAMPLE SIZE: 50 DGMS

• METHOD OF DATA COLLECTION: QUESTIONNAIRE
• TYPE OF DATA: PRIMARY
• METHODS OF CALCULATION: SIMPLE AVERAGE, MEAN, STANDARD

DEVIATI0N, PERCENTAGE AS PER THE STANDARDS OF THE
QUESTIONNAIRE.
The data was collected from secondary and primary sources. The official records, publication, periodical
and journals etc were collected and used for secondary data, where as a well structured questionnaires
were prepared for collection of primary data.

ANALYSIS AND
INTERPRETATION
STATEMENTS IN THE QUESTIONNAIRE:

The new performance management system:

1. Has facilitated translation of corporate goals/ targets into divisional, departmental,
team and individual goals
2. PMS is a continuous and evolutionary process in which performance improves over
time
3. Has creates a shared understanding of what is required to improve performance and
now it will be achieved
4. Encourages self-management of individual performance
5. Encourage two-way communication between manager (Appraiser) and sub-ordinate
(Appraisee) at all levels
6. Delivers continuous feedback on the organizational, team and individual
performance to all officers
7. Have fair procedures
8. Is based on agreed definitions of roles, key result areas (KRAs) and competency
(potential factors) requirement
9. Clear objective (KRAs) and performance measures are agreed at the performance
planning stage
10. Encourages creation of personal development plan (PDP)
11. The online PMS has helped reducing time and effort
12. In general the company performance management system processes are effective in
improving overall individual and organization performance
13. PMS is properly and fairly linked to other HR systems like promotion, performance
related pay, training and development
OBJECTIVES OF THE STUDY AND THE STATEMENTS INCLUDED

UNDER EACH OBJECTIVE:
1. Statements for objectivity in PMS
• Has facilitated translation of corporate goals/ targets into divisional,
departmental, team and individual goals
• PMS is a continuous and evolutionary process in which performance
improves over time

• Has creates a shared understanding of what is required to improve

performance and now it will be achieved.
2. Statement for Transparency in PMS

• Encourage two-way communication between manager (Appraiser) and sub-
ordinate (Appraisee) at all levels
• Delivers continuous feedback on the organizational, team and individual
performance to all officers
• Have fair procedures
3. Statement for role clarity in PMS

• Encourages self-management of individual performance
• Is based on agreed definitions of roles, key result areas (KRAs) and
competency (potential factors) requirement
• Clear objective (KRAs) and performance measures are agreed at the
performance planning stage
4. Statement for linkage with other HR system

• Encourages creation of personal development plan (PDP)
• PMS is properly and fairly linked to other HR systems like promotion,
performance related pay, training and development.
5. Statement for the system improvement

• The online PMS has helped reducing time and effort
• In general the company performance management system processes are
effective in improving overall individual and organization performance.
Master Sheet of responses received

St St St St St St St St St
C. Departme Director . . . . . . . . . St. St. St. St. Depart
No. nt ate 1 2 3 4 5 6 7 8 9 10 11 12 13 Avg
Commerc
1 Quality ial 4 4 3 4 3 5 4 3 4 4 4 4 4 3.85
Commerc
2 Quality ial 4 5 4 5 4 4 5 5 5 5 4 5 5 4.62
Commerc
3 Quality ial 4 5 5 5 5 5 4 5 5 4 5 5 5 4.77
Commerc
4 Quality ial 3 3 4 4 4 4 4 4 4 4 4 3 5 3.85
Commerc
5 Quality ial 4 3 3 4 3 3 3 4 4 3 3 3 3 3.31
Commerc
6 Quality ial 3 3 2 2 2 3 4 4 4 3 4 2 4 3.08
7 Planning Projects 5 4 4 5 4 3 3 4 4 4 3 3 3 3.77
8 Planning Projects 3 4 4 4 4 3 4 4 4 3 3 4 3 3.62
9 Refactory Technical 4 5 4 4 4 5 4 4 5 5 3 4 4 4.23
Commerc
12 Resource ial 4 4 2 4 3 3 4 4 2 4 4 4 4 3.54
Commerc
13 Resource ial 4 4 4 4 4 4 4 4 4 4 4 4 4 4.00
Commerc
14 Resource ial 4 4 4 4 3 3 4 4 4 4 3 4 3 3.69
15 Insulation Technical 4 5 4 5 5 4 5 5 5 5 5 5 4 4.69
16 Insulation Technical 4 4 4 4 3 3 2 4 4 5 5 4 5 3.92
Stress
17 Analysis Projects 4 5 4 5 5 4 4 5 4 3 3 4 5 4.23
Stress
Stress
Stress
Stress
Stress
Stress
Stress
Stress
Stress

Engineerin
27 g Projects 4 4 5 3 5 3 4 4 4 4 5 4 4 4.08
Engineerin
28 g Projects 3 4 4 4 2 2 3 4 4 4 2 2 3 3.15
Engineerin
29 g Projects 4 5 4 4 1 1 5 4 4 4 2 5 5 3.69
Engineerin
30 g Projects 4 4 3 5 5 3 4 5 4 5 5 4 4 4.23
Engineerin
31 g Projects 3 2 2 2 3 2 4 4 4 3 3 3 4 3.00
Engineerin
32 g Projects 4 3 4 4 3 3 4 4 4 4 3 3 4 3.62
Engineerin
33 g Projects 4 3 3 3 3 3 3 3 4 4 4 3 3 3.31
Engineerin
34 g Projects 2 3 3 2 4 3 3 4 3 4 1 2 4 2.92
Personne
35 Personnel l 4 4 4 3 4 3 5 4 4 4 4 4 5 4.00
Personne
36 Personnel l 4 4 4 4 4 4 4 4 5 4 2 4 4 3.92
Personne
37 Personnel l 5 5 5 5 4 4 5 5 4 4 5 5 5 4.69
Personne
38 Personnel l 2 4 3 4 3 3 3 4 3 4 3 2 3 3.15
39 Fuel Firing Technical 4 3 3 4 5 3 4 4 3 5 3 3 4 3.69
40 Fuel Firing Technical 2 3 3 2 2 3 2 3 2 4 2 2 2 2.46
41 Piping Projects 4 4 3 3 4 4 3 4 3 3 3 3 4 3.46
42 Piping Projects 3 4 3 4 4 4 4 4 3 4 4 3 3 3.62
43 Piping Projects 4 4 4 5 5 3 4 4 5 4 4 4 4 4.15
44 Piping Projects 4 5 4 5 5 5 5 5 4 4 4 5 5 4.62
45 PDMS Technical 4 3 4 4 4 4 4 4 4 4 3 4 3 3.77
46 PDMS Technical 4 3 4 4 3 3 4 4 4 4 3 4 3 3.62
47 Vigilance C&MD 3 4 3 5 4 2 2 4 4 2 4 4 2 3.31
Commerc
48 Capacity ial 4 4 4 4 4 5 3 4 4 4 3 4 4 3.92
Commerc
49 Capacity ial 2 4 4 2 2 2 2 4 4 4 1 2 3 2.77
Corp. Personne
50 Affairs l 5 5 5 5 5 5 4 4 4 5 5 5 5 4.77
Statistical Analysis
STND 0. 0. 0. 1. 0. 0. 0. 0.7 1.1 0.9 0.8
DEV 8 9 9 1 1 1 9 7 8 4 1 8 7
MEDIAN 4 4 4 4 4 3 4 4 4 4 3 4 4
AVERAG 3. 3. 3. 3. 3. 3. 3. 4. 3. 3.9 3.3 3.5 3.7
E 6 9 7 8 7 3 6 1 8 5 4 4 1

MODE 4 4 4 4 4 3 4 4 4 4 3 4 4
OBJECTIVES WISE DIRECTORATE

AVERAGE WISE
AVERAGE
Objectivity 3.7
Commercial 3.7
Transparency 3.6
Personnel 3.75
Role clarity 3.9
Technical 3.69
Linkage 3.9
C&MD 3.31
System improvement 3.5
Project 3.69
St St St St
. St . . . St St St St St. St. St. St.
1 .2 3 4 5 .6 .7 .8 .9 10 11 12 13
5 3 12 8 12 12 8 6 10 8 9 8 8 10
4 31 23 25 26 18 13 28 36 31 32 15 21 22
3 9 12 11 5 13 21 10 3 7 6 18 12 14
2 7 3 6 6 6 7 5 0 4 3 7 9 4
1 0 0 0 1 1 1 1 1 0 0 2 0 0
50 50 50 50 50 50 50 50 50 50 50 50 50

QUESTIONWISE ANALYSIS OF DATA
SCALE:
5 strongly agree
4 agree
3 not sure
2 disagree
1 strongly disagree
St.1: Has facilitated translation of corporate goals/ targets into divisional,

departmental, team and individual goals?
%
Scale response
5 6
4 62
%res
0 ponse
5
3 18 14
6 4
2 14 18 3
2
1 0 1
62

St.2: PMS is a continuous and evolutionary process in which performance

improves over time?
%
Scale response
5 24
4 46
0
%response
3 24 6
5
24 4
2 6 24 3
1 0 2
46 1
St.3: Has created a shared understanding of what is required to improve

performance and now it will be achieved?
%
Scale response
5 16
4 50
%response
3 22 12 0 16 5
2 12 22
4
3
1 0 2
1
50
St.4: Encourages self management of individual performance?
%
Scale response
5 24
4 52
Delhi3Institute of Advanced
10 Studies Page 77
2 12
1 2
%response 5
12 2 24 4
10 3
2
1
52
St.5: Encourage two-way communication between manager (Appraiser) and

sub-ordinate (Appraisee) at all levels?
Scale % response
5 24
4 36
3 26 %response 5
2 12 12 2 24 4
1 2 26
3
2
36 1
St.6: Delivers continuous feedback on the organizational, team and individual

performance to all officers?

%
Scale response
5 16
4 26
%response 5
3 42 14 2 16 4
2 14 3
1 2 26 2
42 1
St.7: Have fair procedures?
%
Scale response
5 12
4 56
3 20 %response 5
10 2 12 4
2 10 3
20
1 2 2
56 1
St.8: Is based on agreed definitions of roles, key result areas (KRAs) and
competency (potential factors) requirement?
%
Scale response
5 20
4 72
3 6 %response
60
2 5
20
2 0 4
3
1 2 2
1
72

St.9: Clear objective (KRAs) and performance measures are agreed at the
performance planning stage?
%
Scale response
5 16
4 62
% 0
3 14 8 response 5
16 4
2 8 14
3
1 0 2
1
62
St.10: Encourages creation of personal development plan (PDP)?
%
Scale response
5 18
4 64 % 0
6 response
5
3 12 12 18 4
2 6 3
2
1 0 1
64
St. 11: The online PMS has helped reducing time and effort?

%
Scale response
5 16
4 30
%response
3 36 5
14 4 16
4
2 14 3
1 4 30 2
36 1
St.12: In general the company performance management system processes

are effective in improving overall individual and organization performance?
%
%response
Scale response 5
18 0 16 4
5 16 3
4 42 24 2
42 1
3 24
2 18
1 0
St.13 : PMS is properly and fairly linked to other HR systems like promotion,
performance related pay, training and development?

%
Scale response
5 20
4 44 0
%response 5
3 28 8 20 4
2 8 28
3
2
1 0
1
44
DATA ANALYSIS ON THE BASIS OF OBJECTIVES

4.5
3.92 3.85
4
3.72
3.58
3.48
3.5
2.5
1.5
1
Objectivity transparency roleclarity linkage sys imprvmnt
DATA ANALYSIS ON THE BASIS OF DIRECTORATES

5
4.5
4 3.75
3.7 3.69 3.69
3.5 3.31
2.5
1.5
1
Commercial Personnel Technical C&MD Project

CONCLUSION AND
RECOMMENDATION
ON THE BASIS OF INDIVIDUAL STATEMENT:

1. The data analysis shows that the roles, key result areas
(KRAs) and competency (potential factors) requirement in new Performance
management system in ALSTOM is based on agreed definitions that leads
to clear understanding of roles and responsibilities of the employees.
2. The personal development plan (PDP) filled by the individual is
linked with training management system and is used in identifying training
needs of the concerned employees.
3. There can be more regular feedback regarding the
performance and development needs of the employees.
4. As the online system is new people don’t find it user friendly
and find it more complex to use
ON THE BASIS OF OBJECTIVES OF STUDY:

1. Among the objectives of the study, the new PMS system in ALSTOM is highly
rated on the parameters of “ROLE CLARITY” and “LINKAGE WITH OTHER
HR SYSTEMS”.
2. However, there is a scope of improvement in the functioning of online PMS
system in order to make it more users friendly and reduce time and effort
involved in filling up of online PMS.
ON THE BASIS OF DIRECTORATE:

The results depict that the new online PMS system is doing fairly well across
all the Directorates in the Company and there is uniformity in the responses
received.
SWOT ANALYSIS OF PERFORMANCE MANAGEMENT

SYSTEM:

STRENGTH: OPPORTUNITIES:
• Role clarity • User friendly
• Linkage with other HR system
• Objectivity
WEAKNESS: THREATS:
• Transparency • Lack of feedback
• Feedback system • Biasness
SUGGESTIONS FOR FURTHER IMPROVEMENT OF THE

SYSTEM:
• Should be more users friendly.
• PMS should be less cumbersome in filling and lesser in detailing.
• PMS should be followed in spirit and truthfulness, in order to serve the
purpose for which it is implemented.
• FAQs should be uploaded on online PMS system.
• E-mail should be sent automatically to next supervisor once it is
completed by the employee. Scale of rating (1to5) is narrow and leaves
very little scope of proper evaluation. May be, this scale can be widened
(1 to 10).
• More creativity in choosing BRs/ KRAs is required.
• System is still at nascent stage. Some time is required for system to
mature.

BIBLIOGRAPHY
REFERENCES:
BOOKS AND OTHER MANUALS:

 Kothari “Business research method”
 Ken Black “Business statistics”
 P.V.Rao “ Human Resource Management”
 Annual Report of ALSTOM
 ALSTOM rules book
Websites:
 www.in.alstom.com
 www.google.com
 www.moneycontrol.com
 www.indiainfoline.com
 www.citehr.com
Company Publication:
Entire ALSTOM Annual Report 2008-09, 2007-08, 2006-07

ANNEXURE
SURVEY ON EFFECTIVENESS OF PERFORMANCE

MANAGEMENT SYSTEM
QUESTIONNAIRE
ALSTOM has translated from a traditional performance appraisal system to a new
performance management system (PMS). The new PMS is in operation since last

three years. The system consists of performance planning, mid year review, year end
assessment and development of personal development plan. The new system has
been introduced with a view to increase objectivity, transparency, better role clarity
and linkage with other HR systems like promotion, reward and training and
development. The survey intended to analyze the effectiveness of the new PMS in
meeting the above said objectives.
THE INFORMATION OBTAINED WILL BE USED FOR ACADEMIC PURPOSE ONLY
AND WILL NOT BE RE-PRODUCED ANYWHERE ELSE.
INSTRUCTION:
Please take a few minutes to complete this survey. Based on your personal
experience in this organization and as a user of performance management, please fill
this form to help in having a better understanding of the effectiveness of the new PMS
in ALSTOM and areas of further improvement. Share your views by putting a  mark
in the boxes against each question.
SCALE:
5- STRONGLY AGREE
4- AGREE
3- NOT SURE
2- DISAGREE
1- STRONGLY DISAGREE
PERSONAL DATA:
NAME (OPTIONAL):
DESIGNATION:
DEPARTMENT:
AGE:
S.No. THE NEW STRONGLY AGREE NOT DISAGREE STRONGLY

PERFORMANCE AGREE SURE DISAGREE
MANAGEMENT (5) (4) (3) (2) (1)
SYSTEM

1. Has facilitated
translation of
corporate goals/
targets into     
divisional,
departmental,
team and
individual goals:
    
2. PMS is a
continuous and
evolutionary
process in which
performance
improves over
time:
3. Has created a
shared
understanding of
what is required     
to improve
performance and
now it will be
achieved.
4. Encourages self-
management of
individual
performance     
5. Encourage two-
way
communication
between     
manager
(Appraiser) and
sub-ordinate
(Appraisee) at all

levels:
6. Delivers
continuous
feedback on the
organizational,     
team and
individual
performance to
all officers:
    
7. Have fair
procedures:
8. Is based on
agreed
definitions of
roles, key result     
areas (KRAs)
and competency
(potential factors)
requirement:
    
9. Clear objective
(KRAs) and
performance
measures are
agreed at the
performance
planning stage:
    
10. Encourages
creation of
personal
development
plan (PDP):
    
11. The online PMS
has helped

reducing time
and effort:
12. In general the

company
performance
management     
system
processes are
effective in
improving overall
individual and
organization
performance:
13. PMS is properly
and fairly linked
to other HR
systems like     
promotion,
performance
related pay,
training and
development:
Please, give your suggestions for the further improvement of Performance

management System:


Performance Management at ALSTOM

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A study of Performance Management System in ALSTOM

(Approved by AICTE and Affiliated to G.G.S. Indraprastha University, Delhi)

Corporate Internship Report

Name: Shanu Sosa John

DIAS-Faculty Supervisor: Ms. Shilki Bhatia

Start Date for Internship: 25th May 2010

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Self Certification by the Intern

Name: SHANU SOSA JOHN

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Certificate from the Corporate Internship Providing Organization

Name of the Supervisor: Hameed Jung

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Conclusion And Recommendation

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ALSTOM is a France-based multinational corporation. Alstom is a global leader in

The Areas of the study in this project is Performance Management System of

Performance management includes activities to ensure that goals are

Delhi Institute of Advanced Studies Page 6

The Need and importance of PMS can hardly be underestimated. Every

For employee performance management, using integrated software, rather

In order to do the study, secondary data regarding the Human Resource

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The Objectives of the project are as follows:

 The main objective of the project is to render a better understanding of

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One in four of the world’s light bulbs is powered by Alstom technologies

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Alstom Grid - a global organisation focused on performance

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THREE SECTORS IN WHICH ALSTOM WORKS

• Boilers, heat recovery steam generators, air pre-heaters, pulverizers

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• Gas-fired power plants

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Renovations with technological upgrades and short- or long-term maintenance of

Passenger rail vehicles

• AGV high-speed trains

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• Chicago Chicago Transit Authority 2600 series car rehabilitation

Railway signalling equipment

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• New Jersey Transit

A new world leader

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The Automation business plays an essential role in Alstom Grid's business. It

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equipment needed to manage the flow of electricity in transmission and distribution

As in all businesses associated with the creation of infrastructure, the Service

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and countries, is by definition a complex company. Mutual trust between colleagues

RISK MANAGEMENT POLICY

ALSTOM is committed to effective management of risks across the organization by

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monitoring and reporting of risks. Risk Management at ALSTOM is the responsibility

Tel: +91(120) 473 1100

Tel: +91(120) 473 1100

ALSTOM India - Power Generation

Sales, Marketing and Director - Thermal Systems -

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