Final Internship Report

Performance Appraisal 1
2.1 Introduction of the report
Global opportunities and competitive pressure have made the importance on skill full
management of human resources than ever. Now, in any government-non government,
profitable-non profitable organizations, human resource is the most valuable asset for the
company and has been given more importance than previous on managing this resource. An
organization’s success largely depends on human resources management because it ensures
that an organization has sufficient number of qualified, skilled man power who can
accomplish its goals. Whether it’s a large or small firm employees must be selected, trained
and manage effectively so that they can be a good resource for the organization. Many
organizations are now seeking to higher such a person, who is a business graduate majoring
from HRM for effective management of their human resource. Many human resource
departments in many organizations are now extended their activities from traditional roles as
processors and custodian of personnel information to more sophisticated and more expanded
strategic roles. This activities increase the demand for human resource management and
department. This report seeks to examine the human resource management activities at
ADITYA BIRLA, HINDALCO. Specially their recruitment process, training &
development , performance appraisals, separation, attendance, compensation package, job
analysis & evaluation system etc.
Human Resource (or personnel) management, in the sense of getting things done through
people, is an essential part of every manager’s responsibility, but many organizations find it
advantageous to establish a specialist division to provide an expert service dedicated to
ensuring that the human resource function is performed efficiently.
In the business world investment is made in machinery, equipment and services. Quite
naturally time and money is spent ensuring that they provide what their suppliers claim. In
other words the performance is constantly appraised against the results expected..When it
comes to one of the most expensive resources companies invest in, namely people the job
appraising performance against results is often carried out with the same objectivity. Each
individual has a role to play and management has to ensure that the individual’ subjective
translate into overall corporate objectives of the company. Performance Management
includes the performance appraisal process which in turn helps identifying the training needs
and provides a direction for career and succession planning.
“People are our most valuable asset” is a cliché, which no member of any senior management
team would disagree with. Yet, the reality for many organizations are that their people
remain undervalued, under trained and underutilized.
Performance Appraisal is the process of assessing the performance and progress of an

employee or a group of employees on a given job and his / their potential for future
development. It consists of all formal procedures used in the working organizations to
evaluate personalities, contributions and potentials of employees.
Performance appraisal means to evaluate the performance of employees that they are
performing their jobs up to the standard of the organizations or not. To evaluate the
performance of employees it is very important to establish a proper performance appraisal
system in the organization and to give the training to the managers of the organization to
appraise the performance of employees correctly. This is a broad topic for research and many
researchers have done their researches on performance appraisal to improve the performance
appraisal system of organization. In some organizations management has implemented poor
system of appraisal in these articles authors have discussed that the have found the negative
attitude of employees towards performance appraisal. The main purpose of this project was to
explore the appraisal system in work place and identifying the importance of appraise and
appraiser role to form a positive and effective system. In these articles they have worked on
to give the knowledge to healthcare professionals about difficulties of implanting an appraisal
system, including the lack of guidelines on skills and knowledge required. Researchers have
used DEA data envelope analysis as a fair evaluating and sorting tool to support appraisal
system. This study supports the ideas that rating formats need re-examination with a focus on
computer based models as an alternative to traditional rating methods. Another method has
already been used (AHP) analytic hierarchy process to evaluate the performance of
employees based on the criteria. Quantity/quality of
thework,planning/organization,initiative/commitment,teamwork/cooperation, communication
and external factors. All these criteria have been divided into three sub criteria to evaluate the
employee.
2.2 OBJECTIVES OF STUDY
 To get a practical knowledge

 To identify the different ways in the organization to motivate the employees
 To know how motivation creates job satisfaction among the employees
 To identify the significance of motivation that has an impact on productivity
 To identify the factors which bring high level of satisfaction.
Broad Objective:
The main objective of this report is to know about the HR practices at ADITYA BIRLA,
HINDALCO.
Specific Objective:
Specific objectives of this report are to know the ADITYA BIRLA, HINDALCO’S training,
recruitment process, Compensation, induction, Benefit management system, induction,
separation, attendance & Performance evaluation system, etc.
3.1 RESEARCH METHODOLOGY
Research is the systematic design, collection, analysis and reporting of data and findings to a
specific marketing situation.
Effective research involves five steps:-

Defining the problem and research problem.
Developing the research plan
Collecting the information
Analysing the information
Presentation of the findings
3.1 Defining the problem and research problem.
To understand and examine how motivation is related to employees.
To determine which motivation strategy is more effective.
To determine the results of employee due to motivation
To design employees response table
Developing the research plan

The second step of research call for developing an effective research plan which need to
identify and establish the various effects like.
Type of data
On the basis of the above objectives the data to be collected from the target unit was decided.
To find out the type of incentives motivates employee, data regarding good working
condition, medical benefits, responsibility and role, team spirit were collected.
Further in order to know the effectiveness of motivation.
3.2 Data sources
Basically the data for any type research is collected from two sources i.e the primary sources
and the secondary sources. For our study we have collected some amount of secondary
literature from published source. The primary data on the other hand can be collected in four
broad ways observation focus group.
3.3 Research instruments
Primary questions and mechanical device accessed as research aids by the researcher.
Questionnaire is for the most common instrument used for the present study.
For the purpose of the present day a structured set of questionnaires was adopted where in the
questionnaire the questions were standardized and surveys was made urgently clean. The
questions were of multiple choice types.
Research is a scientific inquiry. It is a process leading to the discovery of facts, how they are
related what causes them and how. A scientific inquires leads to growth of knowledge.
Methodology has an important bearing on the collection of reliable and pertinent information
as well as on the outcome of the study. The categorization of proposed investigation into a
certain type of research, a corresponding method or methods designed for it and appropriate
techniques for collecting and analyzing data are together known as methodology of research.
Research design is a complete outline of the conduct of the proposed research study. It is a
comprehensive statement on the problem and scope of the study the purpose of undertaking
it, the population and location to be covered for collecting information, the hypothesis
formulated for the study and finally the methodology to be employed. The methodology
adopted in conducting this study is discussed next.
3.4 QUESTIONNAIRE:
The data collected through questionnaire becomes primary data, which is used to test
hypothesis. The structured questionnaire consisted of close ended objective question.
INTERVIEW-
Unstructured Interview was conducted to get certain information about the organization from
some employees.
3.5 LIMITATION OF THE STUDY
The first and foremost constraint was the time factor, within a limited period of time,
it was not possible to study various aspects of the organisation in details.
As the executives were busy with their work, they could not afford much time for
discussion.
Employees were apprehensive of survey of data and therefore hesitated in disclosing
the data regarding certain information related to my study.
Due to non-availability of all members of the target audience and due to work
commitments, the sample is limited to 57 employees only.
 Non willingness of the employee to fill up the form honestly.

 Non availability of the employee due to their shifts.
 The busy schedule of the employees was an obstacle in gathering the required
information.
INDUSTRIAL PROFILE
Hindalco Industries Ltd., an aluminium manufacturing company, is a subsidiary of the

Aditya Birla Group. Its headquarters are at Mumbai, Maharashtra, India. It is the Flagship
Company of the company in the metals business.
The company has annual sales of US$ 15 billion and employs around 20,000 people it is
listed in the Forbes Global 2000 at 895th rank ,its market capitalisation by the end of May
2013 was US$ 3.4 billion. Hindalco is one of the world's largest aluminium rolling companies
and one of the biggest producers of primary aluminium in Asia.
The Hindustan Aluminum Corporation Limited was established in 1958 by the Aditya Birla
Group. In 1962 the company began production in Renukoot in Uttar Pradesh making 20
thousand metric tons per year of aluminium metal and 40 thousand metric tons per year of
alumina. In 1989 the company was restructured and renamed Hindalco
Working at Hindalco
"As long as you are the last man standing and are adding value, you would continue to grow.
...The last man standing has the best chance at being the first man forward."
-- Kumar Mangalam Birla

This is the essence of Hindalco’s approach and commitment to people as we strive to attract,
energize, develop and retain a talented and diverse workforce. At Hindalco, we are always
looking for talent, driven by the commitment and passion to achieve and excel. We offer our
employees everything they need to reach their full potential. At the core are the Group values
of integrity, commitment, passion, seamlessness and speed which combine with our vision to
be the best in our business area.
Hindalco's vertical and horizontal integration in the aluminum and copper industries offers
opportunities for a range of employment positions. Its presence in multiple locations across
geographies offers opportunities for employees to be exposed to various nations and cultures.
We are one of the world's leading aluminum and copper producers, but there's always room
for improvement in an environment that is both demanding and challenging. We are looking
for employees who are motivated to meet challenges and contribute to lead us further down
the path of continual improvement.
SERVICES:
INTERNATIONAL JOINT VENTURE

OPERATION
CEMENT ALUMINIUM VFY TELECOM THAILAND
VISCOSE CARBON BLACK INDONESIA

STAPLE COPPER
FIBER PHILIPPINES
TEXTILE
EGYPT
GARMENTS
CANADA
IT/ITeS
AUSTRALIA
INSURANCE
CHINA
FINANCIAL SERVICES
GERMANY
FERTILISERS
PORTUGAL
UK
USA
COMPANY PROFILE
Hirakud Flat Rolled Products [FRP] Project: This project is underway with the
transfer of all the critical equipments for FRP production from the Novelis plant at
Rogerstone, UK to Hirakud. In addition, orders have also been placed for related and
balancing equipment.
The erection of the Cold Rolling Mill has started at the site. Almost 50% of the structural
fabrication and erection is complete. The project enabled the Company to produce a wide
range of superior engineering products, including can-body stock, for both domestic and
export markets. The project was completed in 2012.. The Hirakud FRP project is the first of
its kind in India. This project, which involved relocation of some equipment from a closed
facility of Novelis, will be the first and the only facility that will have the capability to
produce Can body stock in India. This facility will take Hindalco’s FRP play on a higher
plateau in terms of capability and profitability in the coming years. It is expected to create a
formidable combination of Novelis’ technology and Indian cost advantages sourcing metal
from Hirakud smelter. The capacity of this facility is 135KTPA and it has started production.
The total project costs INR 1200 crores and the total target completion period is 22 months.
As an active community player it focuses its CSR initiatives towards health care, education,
women’s empowerment and sustainable livelihood programmes. The entire raw material of
Flat Rolled Plant is generate from Hirakud smelter. The total amount of scrap generated from
the Flat Rolled Plant is sent back to Hirakud smelter for further reprocessing for the
generation of a more amount of final product. There are various departments in the Flat
Rolled Plant. Those are:
HR Department: The basic function of the Human Resource department in the modern
corporate world is knowledge management. The Human Resource department strives to
maintain cohesiveness among the employees. It also ensures the inter departmental
cooperation in achieving targets. The appraisal system is also taken care by this department.
The HR department delves deep into the employees psyche to analyze the positives and
negatives of each employee so that a proper system of delegation and / or empowerment can
be evolved.
Finance Department: The finance department takes care of regular financial needs of the
company and it takes proper allocation of funds and takes care of the working capital
requirements. It verifies the amount of capital raised by different departments and sends them
for approval to the higher authorities.
Stores Department: The function of stores department is to provide adequate and proper
storage and preservation of various items to meet the demand of various other departments by
proper issues and maintaining accounts of consumption. It also keeps a track of stock
accumulation and abnormal consumption.
Production Department: As a part of their ongoing commitment to produce high-tech

quality of aluminum sheets and coils that takes care of specific needs of the markets around
the world. It is the most important department of the company.
MISSION AND VISION
Vision:
To be amongst the most admire companies in India committed to be excellence.
Mission:
a. Be a customer obsessed company

b. No.1 Aluminum brand in India
c. Deliver enhanced value at all stakeholders
d. Most profitable Aluminum Company in India
e. Enhance global presence through acquisition
f. Motivated and committed team development for high performance organization.
Identification of market opportunity is critical before the management of affirm takes a

decision to launch or diversify in any product area.
This involves analysis of the following:
 Size of the market
 Marketing strategies and the extent and quality of services rendered by other firm in
the industry.
 Market programmed required to satisfy market wants
 Identification of key success factors in an industry and linking them to a firm’s
strengths and weakness
ALL HR. ACTIVITIES
 Hr planning
 Job analysis
 Job evaluation
 Job description
 Recruitment process
 Compensation
 Employee relation
 Performance appraisal
 Employee engagement
 Training and development
 Separation
4.1 Literature review
Will Artley (2001) discussed that all high performance organizations are interested in
developing effective performance measurement and performance mgt. systems since it is only
through such system that they can remain high performing. So to attain and maintain the
needed level of performance, the performance mgt. systems are needed in the organizations.
Rajeev.V (2008) in his article on Performance management focused on establishing goals for
all levels in the center, creating KPIs, delivering role-appropriate scorecards with KPI scores
and providing a framework for personal development. A fundamental element of
performance management is identifying the right KPIs to focus on for different levels in the
center that are also aligned with enterprise goals. The key is to start with an extensive set of
predefined KPIs, along with the ability for businesses to create their own general or line-of-
business-specific versions. These powerful solutions are impacting businesses across
industries and around the globe in measurable ways.
Lillian. M and Peter .M (2010) exclaimed that the performance and competitiveness of
different companies can be attainted through implementation of perfectly defined
performance measurement indicators and framework that are able to measure the
performance function by analysing the use of certain performance indicators in management
of maintenance. They discovered that the maximum respondents have very less decisions and
changes in processes triggered by performance measurement.
Michael Pitt (2013) highlighted on the fact that Performance management is an essential
element to check the performance and quality of properties. This paper determined the recent
standards and performance of maintenance management system by studying high-rise private
office buildings. Jorge
M. S, Carlos F (2010) expressed that Performance management is the sum up of

performance appraisal systems long with wider human resource systems as a means customer
to be the focus of strategic organizational, operational and practices. Many manufacturing
organizations operate as open systems of operations. In these kind of systems, latest
operational technologies of manufacturing are enhanced with modern communication
technologies, information and to integrate and coordinate operational resources, activities
and processes in order to create a stream of value-added operations aimed at capturing and
sustaining a competitive benefit and performance management system proves to be very

helpful in doing so. Roger.s reviewed six latest performance management studies and
organized the key findings into two groups: performance management impact on
organizational success and performance management trends/ best practices that have proven
successful for others and affect any organization's bottom line.
sayantani g, niladri .d (2013) studied the impact of performance reward systems mainly
performance related pay, the role of resources in influencing educational outcomes and the
reliability of existing methods of assessing educational performance. they reported the
findings which identify the methods of pms in indian and international education sector by
introducing a new model in performance management system. this model uses three forms to
collect information regarding the particular faculty from various sources that are the
particular faculty, students and head of the department. all this information will be send to the
management for analysis and feedback. major benefit is transparency.
Neeti and Santosh .c (2015) studied that employees have good knowledge of performance
appraisal and have a positive attitude towards it as their promotion is purely based on
performance appraisal and the ratings help to fix increments. during the course of study
suggestions came from the employees for the need of counselling. performance appraisal
should be made more transparent and rationale.
4.2 PERFORMANCE APPRAISAL
Performance appraisal is the process of obtaining, analyzing and recording information about
the relative worth of an employee. The focus of the performance appraisal is measuring and
improving the actual performance of the employee and also the future potential of the
employee. Its aim is to measure what an employee does. It is a powerful tool to calibrate,
refine and reward the performance of the employee. It helps to analyze his achievements and
evaluate his contribution towards the achievements of the overall organizational goals.By
focusing the attention on performance, performance appraisal goes to the heart of personnel
management and reflects the management’s interest in the progress of the employees. People
differ in their abilities and their aptitudes. There is always some difference between the
quality and quantity of the same work on the same job being done by twodifferent people.
Therefore, performance management and performance appraisal is necessary to understand
each employee’s abilities, competencies and relative merit and worth for the organization.
Performance appraisal rates the employees in terms of their performance. Performance
appraisal takes into account the past performance of the employees and focuses on the
improvement of the future performance of the employees.
The performance appraisal is the process of assessing employee performance by way of

comparing present performance with already established standards which have been already
communicated to employees, subsequently providing feedback to employees about their
performance level for the purpose of improving their performance as needed by the
organization.
As said above the very purpose of performance uprising is to know performance of

employee, subsequently to decide whether training is needed to particular employee or to
give promotion with additional pay hike. performance appraisal is the tool for determining
whether employee is to be promoted, demoted or sacked ( remove ) in case of very poor
performance and no scope for improvement.
Every corporate sector uses performance appraisal as a tool for knowing about the employee
and take decisions about particular employee. for the purpose of performance appraisal of
employees there are different methods under the category of traditional methods and modern
methods which are discussed in following chapters.
OBJECTIVES OF PERFORMANCE APPRAISAL:
• To review the performance of the employees over a given period of time.
• To judge the gap between the actual and the desired performance.
• To help the management in exercising organizational control.
• Helps to strengthen the relationship and communication between superior –

subordinates and management – employees.
• To diagnose the strengths and weaknesses of the individuals so as to identify the

training and development needs of the future.
• To provide feedback to the employees regarding their past performance.
• Provide information to assist in the other personal decisions in the organization.
• Provide clarity of the expectations and responsibilities of the functions to be

performed by the employees.
• To judge the effectiveness of the other human resource functions of the organization
such as recruitment, selection, training and development.
• To reduce the grievances of the employees. If employee development is required for

performance improvement then solving these performance problems should be
straightforward with a clear understanding of root causes. Possible approaches include
changing the work environment, better prioritization of conflicting priorities, time off,
additional training, shadow or buddy system, mentoring or coaching, changing team
environment or set objectives and so on.
Definitions:
Performance appraisal has been defined by different scholars in various ways. Some of the
important definitions are as follows:
Dale S. Beach, "Performance appraisal is systematic evaluation of the individual with respect
to his or her performance on the job and his or her potential for development".
Randall S. Schuler, "Performance appraisal is a formal, structured system of measuring and

evaluating an employee’s job, related behavior and outcomes to discover how and why the
employee is presently perfuming on the job and how the employee can perform more
effectively in the future so that the employee, organization, and society all benefit."
Heyel, "It is the process of evaluating the performance and qualifications of the employees in
terms of the requirements of the job for which he is employed, for purposes of administration
including placement, selection for promotions, providing financial rewards and other actions
which require differential treatment among the members of a group as distinguished from
actions affecting all members equally."
Dale Yoder, ''Performance appraisal includes all formal procedures used to evaluated
personalities and contributions and potentials of group members in a working organization. It
is a continuous process to secure information necessary for making correct and objective
decisions on employees."
Characteristics of Performance Appraisal:-
1. Performance Appraisal is a process.

2. It is the systematic examination of the strengths and weakness of an employee in
terms of his job.
3. It is scientific and objective study. Formal procedures are used in the study.
4. It is an ongoing and continuous process wherein the evaluations are arranged
periodically according to a definite plan.
Limitations:-
1. Errors in Rating
2. Lack of reliability
3. Negative approach
4. Multiple objectives
5. Lack of knowledge
Steps Involved in Process of Performance Appraisal:-
1. Establish Performance Standards:
The appraisal process begins with the establishment of per-formance standards. The
managers must determine what outputs, accomplishments and skills will be evaluated. These
standards should have evolved out of job analysis and job descriptions.
These performance standards should also be clear and objective to be understood and
measured. Standards should not be expressed in an articulated or vague manner such as “a
good job” or “a full day’s work” as these vague phrases tells nothing.
2. Communicate Performance Expectations to Employees:
Once the performance standards are established, this need to be communicated to the
respective employees so that they come to know what is expected of them. Past experience
indicates that not communicating standards to the employ-ees compounds the appraisal
problem.
3. Measure Actual Performance:
This is the third step involved in the appraisal process. In this stage, the actual performance of
the employee is measured on the basis of information available from various sources such as
personal observation, statistical reports, oral reports, and written reports..
4. Compare Actual Performance with Standards:
In this stage, the actual performance is compared with the predetermined standards. Such a
comparison may reveal the deviation between standard performance and actual performance
and will enable the evaluator to proceed to the fifth step in the process, i.e., the discussion of
the appraisal with the concerned employees.
5.Discuss the Appraisal with the Employee:
The fifth step in the appraisal process is to communi-cate to and discuss with the employees
the results of the appraisal. This is, in fact, one of the most challenging tasks the manager’s
face to present an accurate appraisal to the employees and then make them accept the
appraisal in a constructive manner.
A discussion on appraisal enables employees to know their strengths and weaknesses. This
has, in turn, impact on their future performance. Yes, the impact may be positive or negative
depending upon how the appraisal is presented and discussed with the employees.
6. Initiate Corrective Action:
The final step in the appraisal process is the initiation of corrective action when it is
necessary. The areas needing improvement are identified and then, the measures to correct or
improve the performance are identified and initiated.
Methods of Performance appraisal:-
The foregoing list of major program pitfalls represents a formidable challenge, even
considering the available battery of appraisal techniques. But attempting to avoid these
pitfalls by doing away with appraisals themselves is like trying to solve the problems of life
by committing suicide. The more logical task is to identify those appraisal practices that are
(a) most likely to achieve a particular objective
(b) least vulnerable to the obstacles already discussed.
The best-known techniques will be treated most briefly.
Essay appraisal
In its simplest form, this technique asks the rater to write a paragraph or more covering an
individual's strengths, weaknesses, potential, and so on. In most selection situations,
particularly those involving professional, sales, or managerial positions, essay appraisals
from former employers, teachers, or associates carry significant weight.
Graphic rating scale
This technique may not yield the depth of an essay appraisal, but it is more consistent and
reliable. Typically, a graphic scale assesses a person on the quality and quantity of his work
(is he outstanding, above average, average, or unsatisfactory?) and on a variety of other
factors that vary with the job but usually include personal traits like reliability and
cooperation. It may also include specific performance items like oral and written
communication.
Field review
The field review is one of several techniques for doing this. A member of the personnel or
central administrative staff meets with small groups of raters from each supervisory unit and
goes over each employee's rating with them to (a) identify areas of inter-rater disagreement,
(b) help the group arrive at a consensus, and (c) determine that each rater conceives the
standards similarly. .
Forced-choice rating
Like the field review, this technique was developed to reduce bias and establish objective
standards of comparison between individuals, but it does not involve the intervention of a
third party.
Management by objectives
To avoid, or to deal with, the feeling that they are being judged by unfairly high standards,
employees in some organizations are being asked to set - or help set - their own performance
goals. Within the past five or six years, MBO has become something of a fad and is so
familiar to most managers that I will not dwell on it here.
Ranking methods
For comparative purposes, particularly when it is necessary to compare people who work for
different supervisors, individual statements, ratings, or appraisal forms are not particularly
useful. Instead, it is necessary to recognize that comparisons involve an overall subjective
judgment to which a host of additional facts and impressions must somehow be added. There
is no single form or way to do this.
The best approach appears to be a ranking technique involving pooled judgment.
Assessment centers
So far, we have been talking about assessing past performance. What about the assessment of
future performance or potential? In any placement decision and even more so in promotion
decisions, some prediction of future performance is necessary. How can this kind of
prediction be made most validly and most fairly?
360 Degree Feedback

Many firms have expanded the idea of upward feedback into what the call 360-degree
feedback. The feedback is generally used for training and development, rather than for pay
increases.
Benefits of Performance Appraisals:-
•Measures an employee’s performance.
•Helps in clarifying, defining, redefining priorities and objectives.
•Motivates the employee through achievement and feedback.
•Facilitates assessment and agreement of training needs.
•Helps in identification of personal strengths and weaknesses.
•Plays an important role in Personal career and succession planning.
•Clarifies team roles and facilitates team building.
•Plays major role in organizational training needs assessment and analysis.
•Improves understanding and relationship between the employee and the reporting
manager and also helps in resolving confusions and misunderstandings.
•Plays an important tool for communicating the organization’s philosophies, values,

aims, strategies, priorities, etc among its employees.
•Helps in counseling and feedback.

PERFORMANCE APPRAISAL METHOD USE IN HINDALCO FRP:-
BELL CURVE APPRAISAL
A bell curve, or more specifically, a Gaussian Distribution, is a symmetric curve that is

pronounced in the middle, and tapered off at the edges (it really does look like a bell). As
such, the middle portion under the curve contains more area than either of the ends. The Bell
Curve appraisal system is better known as the Forced Ranking Appraisal Systems of a
company’s employees. Forced ranking has been defined as “a workforce management tool
based on the premise that in order to develop and thrive, a company must identify its best and
worst performers, then nurture the former and rehabilitate and/ or discard the latter”. It
categorizes people based on their performance, rewards or penalizes them accordingly.
Ranking employees is everyday practice at companies like General Electric (GE), Microsoft,
Cisco Systems, Hewlett-Packard, and Sun Microsystems.
The entire workforce is segregated as the top performers, medium performers and the poor
performers. The percentage varies with the company policy; it could be the top 10%, middle
80% and the bottom 10%.
Benefits:
• The workers, who are high performers, are motivated to keep improving themselves with
the incentive of stock options, higher pay etc.
• The majority of the workers, who are classified as average performers, are provided with
opportunities to enhance themselves with various training modules and other tools of
improvement. This increases the company’s competence level as a whole.
• The low performers are warned that they need to get their act together and thus, the
productivity of the organization slowly improves
• Accountability, which is the purpose of performance appraisals, is enforced across the

organization by using Bell Curve.
Limitation:
• The problem with Bell Curve methodology begins with its application. The distribution
curve can only be applied to an organization with certain number of employees as a
threshold. With small number of employees, the categorization of resources becomes too
constrained, and more often, erroneous.
• Bell Curve method for performance appraisal always creates a doubt about the fairness of
the classification system. Many times employees show increased activity in the time period
approaching appraisals. Hence, the bias towards visible performance as against actual
performance may overshadow fair categorization.
• Distributing incentives based on Bell curve methodology cannot guarantee an increase in

the company’s overall performance. It happens only over a long period of time.
• The Bell Curve system is too rigid a model to be followed, especially in a country like
India, where the work culture is dominated by an emotional approach.
• Often, a manager is forced to classify people in the last gradient of the Bell Curve, but, it
might not reflect the manager’s actual perception about the worker.
• In certain circumstances, a high performer gets slotted as a mid-level performer in order to

normalize the distribution curve, which defeats the purpose of performance appraisals.
• The Bell Curve has a cost to it – attrition. The bottom percent of people may be there
because of statistical compulsions, rather than the fact that their managers think they deserve
to be there. This ultimately leads to attrition and adds to hiring costs of a company.
• The Bell Curve tries to push everyone into the best worker category, but, the truth remains
that organizations are more often run on the combined efforts of the so called ‘average’ work
force.
Checkpoints Before Implementation of Bell Curve:
Before the implementation of the Bell Curve Appraisal System, Please ensure the following –
• Use of objective parameters for the performance appraisal system.
• Determine the reason for poor performance of the employee if there is any.
• Let the employee take responsibility for improved and only offer your assistance if needed.
• Document all the performance related discussions with the employee because generally the
bell curve system attracts a lot of law suits by fired employees in the west and hence it’s
better to have all the discussions documented for you and your company's safety.
DATA ANANLYSIS AND INTERPRETATION
DEPARTMENTS
Table-7.1(Departments)
Production/Operation 7.407%
Engineering/Maintenance 44.44%
Finance and commercial 11.11%
Quality control, R&D 14.82%
Projects 18.52%
Human resources 3.703%
Source: - Author’s Calculation
Fig-7.1(Department)
4% 7%
19% Production/Operation
Engineering/Maintenance
Finance and commercial
Quality control, R&D
15% 44% Projects
Human resources
11%
Source: - Author’s Compilation

AGE GROUP
Table-7.2(Age group)
25 years or less 3.703%
26-30 years 44.44%
31-35 years 22.22%
36-40 years 18.51%
41-45 years 3.703%
46-50 years 3.703%
51-55years 3.703%
Above 55 years 0%
Fig-7.2(Age group)
25 years or less 26-30 years 31-35 years 36-40 years

41-45 years 46-50 years 51-55years Above 55 years
0%
4%
4%
4% 4%
18%
44%
22%

EXPERIENCE
Table-7.3(Experience)
Less than 1 years 3.703%
2-3 years 7.407%
4-7 years 37.037%
Above 7 years 48.148%
No response 3.703%
Fig-7.3(Experience)
Less than 1 years 2-3 years 4-7 years Above 7 years No response
4% 4%
7%
48%
37%

1- I am aware of the method adopted for performance appraisal in my organization.
Table-7.4(Awareness of performance appraisal)

Strongly agree 37.03%
Agree 55.55%
Neither agree nor disagree 0%
Strongly disagree 3.70%
Disagree 0%
No response 3.70%
Fig-
7.4(Awareness
60
of performance
Strongly agree
50 apprisal)
40 Agree
30 Neither agree nor

disagree
20
Strongly disagree
10
Disagree
0
Strongly Agree Neither Strongly Disagree No
agree agree disagree response No response
nor
disagree
INTERPRETATION:-
From the above analysis it was found that 92.6 % employee agreed that they are aware of the
method used for performance appraisal in the HINDALCO FRP where as 3.70% disagree and
rest 3.70% remain slient.
2-Appraisal system in Hindalco FRP clearly and accurately judges the knowledge and
performance of the individual.
Table-7.5(Clarity of performance appraisal)

Agree 48.14%
Neither agree nor disagree 37.03%
Disagree 0%
No response 0%
Fig-7.5(Clarity of performance apprisal)
60
Strongly agree
50
40 Agree
30
20 Neither agree nor
disagree
10
Strongly disagree
0
Disagree
No response
INTERPRETATION:-
As from the above analysis it is found that 59.26% respondent agree that HINDALCO FRP
clearly and accurately judges the knowledge and performance of the individuals, where
3.70% strongly disagree and 37.04% neither agree nor disagree.
3-Performance appraisal helps to win co-operation and team work in the unit.
Table-7.6 (Co-operation and team work through performance appraisal)
Strongly agree 7.4%

Agree 40.74%
Strongly disagree 0%
Disagree 3.70%
No response 0%
Fig-7.6(Co-operation and team work through performance appraisal )
60
50
40
30
20
10
0
Strongly Agree Neither Strongly Disagree No
agree agree nor disagree response
disagree
INTERPRETATION:-
From the above analysis it was found that48.14 % agreed and 3.70% disagreed remaining
48.14% opt for neither agree nor disagree.
4-Present appraisal system facilitate the growth and learning for both appraiser and
appraise.
Table-7.7(Growth of appraiser and appraise)

Strongly agree 7.4%
Agree 48.14%
Disagree 3.70%
No response 0%
Fig-7.7(Growth of appraiser and appraise)
60
50
40
30
20
10
0
Strongly Agree Neither Strongly Disagree No response
agree agree nor disagree
disagree
INTERPRETATION:-
From the above analysis 55.54% agreed that performance appraisal system
facilitate the growth and learning for both appraiser and appraise where as 7.4%
disagreed rest 37.03% opt for neither agree nor disagree.
5-Performance appraisal gives constructive criticism in a friendly and positive manner.
Table-7.8(Effectiveness of performance appraisal)

Agree 51.85%
Strongly disagree 0%
Disagree 7.40%
No response 3.70%
Fig-7.8(Effectiveness of performance appraisal)
60
50
40
30
20
10
0
disagree
INTERPRETATION:-
From the above analysis 66.66% agreed that Performance appraisal gives constructive
criticism in a friendly and positive manner, whereas7.40% disagreed with it, 22.22% opt for
neither agree nor disagree where as 3.70% remain silent.
6-Performance appraisal improves motivation and job satisfaction.
Table-7.9(Improvement of job satisfaction)

Agree 37.03%
Disagree 0%
No response 0%
Fig-7.9(Improvement of job satisfaction)
45
40
35
30
25
20
15
10
5
0
disagree
INTERPRETATION:-
From the above analysis 55.54% agreed that performance appraisal improves motivation and
job satisfaction where 3.70% disagreed with it rest 40.74% remaining opt for neither agree
nor disagree.
7-My manager is partial in performance appraisal.
Table-7.10(Partiality in performance)
Agree 7.40%
Disagree 29.62%
No response 7.40%
Fig-7.10(Partiality in performance)
35
30
25
20
15
10
0
disagree
INTERPRETATION:-
From the above analysis 11.1%agreed that my manager is partial in performance appraisal,
29.62% neither agree nor disagree, 51.84% disagreed with this and 7.40% remain silent.
8-I am satisfied with the feedback mechanism for dissatisfaction regarding performance
appraisal process.
Table-7.11(Satisfaction and dissatisfaction from performance appraisal)

Agree 40.74%
Disagree 7.40%
No response 0%
Fig-7.11(Satisfaction and dissatisfaction from performance appraisal)
45
40
35
30
25
20
15
10
0
Strongly agree Agree Neither agree Strongly Disagree No response
nor disagree disagree
INTERPRETATION:-
From the above analysis 55.55% agreed that they are satisfied with the feedback mechanism
for dissatisfaction regarding performance appraisal process, 22.22% neither agree nor
disagree, 22.21% disagreed with it
9- What do you most expect from a performance appraisal?
Table-7.12(Expectation from performance appraisal)

Salary administration and benefits 40.77%
An insight into strength and weakness 22.22%
Promotion or transfer 11.11%
Recognition 25.92%
Fig-7.12(Expectation from performance appraisal)
35
30
25
20
15
10
0
Salary administration An insight into strength Promotion or transfer Recognition
and benefits and weakness
INTERPRETATION:-
From the above analysis it is found that 33.33%expect salary administration and benefits,
then 25.9% expect recognition, 22.22% expect insight into strength and weakness whereas
only 11.11% want promotion or transfer.
10-Did you discuss goal for the year 2017-18 with your manager?
Table-7.13(Communication with manager)

Yes 81.48%
No 14.81%
No response 3.70%
Fig-7.13(Communication with manager)
90
80
70
60
50
40
30
20
10
0
Yes No No response
INTERPRETATION:-
From the above analysis it is found that most of the respondents discuss their goals with the
manager. Around 81.48% opt for yes.
11-Did you review on own development plan?
Table-7.14(Developmental plan)
Yes 70.37%
No 29.62%
No response 0%
Fig-7.14(Developmental plan)
80
70
60
50
40
30
20
10
0
Yes No No response
INTERPRETATION:-
From the above analysis 70.37% said Yes that they review their own development plan
whereas only 29.62% said No.
12-Did your manager used past performance record to evaluate current year
performance?
Table-7.15(Evaluation of performance)
Yes 33.33%
No 62.96%
No response 3.70%
Fig-7.15(Evaluation of performance)
70
60
50
40
30
20
10
0
Yes No No response
INTERPRETATION:-
From the above analysis around 62.96% said No whereas 33.33% said Yes and 3.7% opt to
be Silent
13- Did your manager use negative tone during the performance discussion?
Table-7.16(Behaviour of manager towards employee)

Yes 11.11%
No 88.88%
No response 0%
Fig-7.16(Behaviour of manager towards employee)
100
90
80
70
60
50
40
30
20
10
0
Yes No No response
INTERPRETATION:-
From the above analysis around 11.11% said yes and 88.89% said No.
14-Did your manger look at your whole year performance during review?
Table-7.17(Performance review)
Yes 81.48%
No 18.51%
No response 0%
Fig-
7.17(Performan
90
ce review)
80
70
60
50
40
30
20
10
0
Yes No No response
INTERPRETATION:-
From the above analysis 81.48% said Yes while 18.51% said no.
5.1 FINDINGS
 The result of the demographic factors shows that majority of the respondents are
youth, & they belongs to the age group of 26-30(44.44%) & next belongs to 31-35
age group holder(21.22%),36-40 age groups (18.51%), below 25 age groups
(3.703%),41-45 age groups were being so busy on their work so respondents are
(3.703%),46-49 age group response only (3.703%),due to lack of patience 51-55 & 55
responses (0%)
.
 In question 1 it is found that 55.55% of the employee are feel that they aware of
methods which company implement . And 3.70% are not agreeing in this statement.
 In question 2 it is found that 11.11% are strongly agreed that Appraisal system in
Hindalco FRP clearly and accurately judges the knowledge and performance of the
individual and 48.14%are agreed, and 37.03% are not agree.
 In question 3 it is found that 48.14% are neither agree nor disagree on Performance
appraisal helps to win co-operation and team work in the unit.40.74% are agreed and
3.70% are disagree.
 In question 4 it is found that 48.14% are agreed on Present appraisal system facilitate
the growth and learning for both appraiser and appraise.7.7% are strongly agreed and
37.3% are neither agreed nor disagreed.
 In question 5 it is found that 14.81% are strongly agreed on Performance appraisal

gives constructive criticism in a friendly and positive manner. 51.85% are agreed and
22.22% are neither agreed nor disagreed and 7.40% are disagreed.
 18.51% strongly believe that Performance appraisal improves motivation and job
satisfaction. 37.03% are agree and 40.70% are neither agree nor disagree.
 3.70% are strongly agreed that manager is partial in performance appraisal, 7.40% are
agree, 29.62% neither agree nor disagree, 22.22% are strongly disagree 29.62% are
disagree and 7.40% no response.
 14.81% are strongly agree on satisfied with the feedback mechanism for
dissatisfaction regarding performance appraisal process. 40.74% are agree, 22.22%
are neither agree nor disagree, 14.81% are strongly disagree and 7.40% are disagree.
 40.77% are expect Salary administration and benefit while 22.22% expect an insight
into strength and weakness, 11.11% Promotion or transfer , 25.92% expect
Recognition.
 81.48% say yes that discuss goal for the year 2017-18 with your manager, 14.81% say
no and 3.70% no responds.
 70.37% say yes to review on own development plan, 29.62% say no.
 33.33% says yes to your manager used past performance record to evaluate current
year performance, 62.96% say no and 3.70% has no responds.
 11.11% says yes to manager use negative tone during the performance discussion, and
88.88% says no.
 81.48% says yes on your manger look at your whole year performance during review
and 18.51% says no.
5.2 SUGESSTIONS
 Performance appraisal should be based upon level of in depth knowledge of a

candidate and his/her contribution to the organization.
 There should be an observer during review process for further improvement.
 Employees naturally like to know how they are performing relative to what is
expected from them. So feedback regarding performance should be provided.
 There should be specific discussion during appraisal with reporting boss.
 Elaborate the path forward for improvement on negative point.
CONCULSION
The final result of assessment is a judgment that performance is adequate or good, needs
improvement, or has improved following efforts to alleviate problems or realize a new vision
for a community. An important value of performance assessment is in promoting and
structuring interactions among stakeholders that lead to better understanding of community
objectives and the role for infrastructure in realizing those objectives. This understanding is
the basis for making good judgments on which decisions may be based. Even when a
consensus is not reached, a structured approach offers the benefits of providing a framework
for debate.
Performance appraisal is necessary for every organization .it help to know the performance
level of the employee perception of the employee towards the management. It has also
negative side but the positive side is much stronger. There are many respected sources like
researchers, management commentators who have expressed doubts about the validity and
reliability of the performance appraisal. Some have suggested that the process is so inherently
followed that is impossible to perfect it. At the other extreme there are many strong advocates
of performance appraisal. Performance appraisal should aim at human potential . It should be
carried out with active co-operation and willingness of employee and management.
BIBLIOGRAPHY
[1] Beer, M and Ruh, R A (1976) Employee growth through performance management
Bernardin HJ, Villanova P (1986). Performance appraisal. In: Locke EA (Ed.), Generalizing
from laboratory to field settings: Lexington, MA: Lexington. Pp.43-62.
[10] http://www.exinfm.com/pdffiles/pm.pdf
[11] http://www.sciencedirect.com/science/article/pii/S1044500500901306
[12] Bernardin HJ, Villanova P (1986). Performance appraisal. In: Locke EA (Ed.),
Generalizing from laboratory to field settings: Lexington, MA: Lexington. Pp.43-62.
[13] http://en.wikipedia.org/wiki/Performance_management
[14] http://www.managementstudyguide.com/performance-management.htm
[2] Research report::Indian FMCG Industry by Action financial services India ltd.(AFSIL)
[3] Rogers, R., Miller, L., & Worklan, J. (1993). Performance Management: What's Hot—
What's Not. Development Dimensions International and the Society for Human Resources
Management
[4] Roger.S, Performance Management: Impacts and Trends, Development Dimensions

International, Inc. MCMXCVIII. 1-6
[5] Russell, J.S. and Goode, D.L. (1988), “An analysis of managers’ reactions to their own
performance appraisal feedback”, Journal of Applied Psychology, Vol. 73, pp. 63-7
[6] Sayantani G, Niladri .D (2013) New Model of Performance Management and

Measurement in Higher Education Sector, IJSR - INTERNATIONAL JOURNAL OF
SCIENTIFIC RESEARCH Volume : 2 | Issue : 8 | August 2013 ,267-274
[7]http://www.tec.govt.nz/Documents/Reports%20and%20other%20documents/Tertiarysecto
r-performance-improving-students-results-aggregate-november-2009.pdf
[8] http://theglobaljournals.com/ijsr/file.php?val=August_2013_1375430474_edd30_86.pdf
[9]
http://www.academia.edu/5450806/EFFICACY_OF_PERFORMANCE_MANAGEMENT
_SYSTEM_AN_EMPIRICAL_STUDY_AT_ICICI_BANK
ANNEXURE
QUESTIONNAIRE FOR
SURVEY ON PERFORMANCE APPRAISAL
 The purpose of this survey is to give you the opportunity to express your current
opinions about important aspects of Performance Appraisal Process and its
effectiveness and to provide us with feedback on what we need to for improve.
 Please read each statement carefully and select the response that best
represents your opinion.
Please select the appropriate option
FUNCTION: Production/Operation Quality Control, R&D
Engineering/Maintenance Projects
Finance and Commercial Human Resources
AGE 25 years or less 41-45 years

GROUP:
26-30 years 46-50 years
31-35 years 51-55 years
36-40 years Above 55 years
Less than 1 year 4-7 years

EXPERIENCE:
2-3 years Above 7 years
S.N FACTORS Strongl Agree Neither Strongly Disagree

O y Agree Disagree
Agree nor
Disagree
1. I am aware of the method adopted for

performance appraisal in my organization
2. Appraisal System in Hindalco FRP clearly

and accurately judges the knowledge and
performance of the Individual
3. Performance appraisal helps to win co-

operation and team work in the unit
4. Present Appraisal system facilitate the

growth and learning for both appraiser and
appraise.
5. Performance appraisal gives constructive

criticism in a friendly and positive manner.
6. Performance appraisal improves motivation

and job satisfaction
7. My manageris partial in performance

appraisal
8. I am satisfied with the feedback mechanism

for dissatisfaction regarding performance
appraisal process.
9. What do you most expect from a performance appraisal?
 Salary Administration and Benefits

 An insight into strengths and weakness
 Promotion or transfer
 Recognition
10. Did you discuss goal for the year 2017- 18 with your manager?
a. Yes b. No
11. Did you review on own development plan?
a. Yes b. No
12. Did your manager used past performance record to evaluate current year performance?
a. Yes b. No
13. Did your manager use negative tone during the performance discussion?
a. Yes b.No
14. Did your manager look at your whole year performance during the review?
a. Yes b. No

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Performance Appraisal 1

2.1 Introduction of the report

Performance Appraisal is the process of assessing the performance and progress of an

2.2 OBJECTIVES OF STUDY

 To get a practical knowledge

3.1 RESEARCH METHODOLOGY

Effective research involves five steps:-

Developing the research plan

Collecting the information

Analysing the information

Presentation of the findings

3.1 Defining the problem and research problem.

To understand and examine how motivation is related to employees.

To determine which motivation strategy is more effective.

To determine the results of employee due to motivation

To design employees response table

Developing the research plan

Further in order to know the effectiveness of motivation.

3.2 Data sources

3.3 Research instruments

3.5 LIMITATION OF THE STUDY

 Non willingness of the employee to fill up the form honestly.

Hindalco Industries Ltd., an aluminium manufacturing company, is a subsidiary of the

-- Kumar Mangalam Birla

INTERNATIONAL JOINT VENTURE

CEMENT ALUMINIUM VFY TELECOM THAILAND

VISCOSE CARBON BLACK INDONESIA

Production Department: As a part of their ongoing commitment to produce high-tech

MISSION AND VISION

To be amongst the most admire companies in India committed to be excellence.

a. Be a customer obsessed company

Identification of market opportunity is critical before the management of affirm takes a

ALL HR. ACTIVITIES

4.1 Literature review

M. S, Carlos F (2010) expressed that Performance management is the sum up of

technologies, information and to integrate and coordinate operational resources, activities

sustaining a competitive benefit and performance management system proves to be very

4.2 PERFORMANCE APPRAISAL

The performance appraisal is the process of assessing employee performance by way of

As said above the very purpose of performance uprising is to know performance of

OBJECTIVES OF PERFORMANCE APPRAISAL:

• To review the performance of the employees over a given period of time.

• To help the management in exercising organizational control.

• Helps to strengthen the relationship and communication between superior –

• To diagnose the strengths and weaknesses of the individuals so as to identify the

• To provide feedback to the employees regarding their past performance.

• Provide information to assist in the other personal decisions in the organization.

• Provide clarity of the expectations and responsibilities of the functions to be

• To reduce the grievances of the employees. If employee development is required for

Randall S. Schuler, "Performance appraisal is a formal, structured system of measuring and

Characteristics of Performance Appraisal:-

1. Performance Appraisal is a process.

Steps Involved in Process of Performance Appraisal:-

1. Establish Performance Standards:

2. Communicate Performance Expectations to Employees:

3. Measure Actual Performance:

4. Compare Actual Performance with Standards:

5.Discuss the Appraisal with the Employee:

6. Initiate Corrective Action:

Methods of Performance appraisal:-

(a) most likely to achieve a particular objective

(b) least vulnerable to the obstacles already discussed.

The best-known techniques will be treated most briefly.

Graphic rating scale