Project 1

A study on Performance Appraisal
CHAPTER 1
Ballari institution of technology and management Page 1

Introduction about the Internship:
This is an internship report. Master of Business Administration (MBA) course requires a 10

weeks attachment with an organisation followed by a report assigned by the supervisor in the
organisation and endorsed by the faculty advisor. I took the opportunity to do my internship
in BEML. This is one of leading manufacturer of Metro Rails in India. This internship project
is very helpful and plays a vital role to bridge the gap between the theories studied and the
real business world. It helps us to get the real exposure in Understanding the functioning of
an organization.
The internship study helps to enrich the practical knowledge of the students on activities of
the organization, its functional departments, organizational structure, strengths, weakness,
opportunities, threats and the performance in terms of growth and market share. It also
enables to learn about the job functions and activities of the employees.
Hence our academics gave us a great opportunity to gain the knowledge and enhance our
skills before entering to the corporate world. Under the proper guidance of HR personnel Mr
Syed Shuiybuddin KZ , BEML. I have conducted my study on “Performance Appraisal” my
faculty supervisor Asst Prof Naveen Kumar BITM college, also approved for the selection of
the organisation and authorised me to prepare this report as part of the fulfilment of
internship requirement and gave me proper guidance and assistance over time.

Industry profile:
The industrial revolution took place in united kingdom in 18th – 19th century it saw many
major changes in all sectors such as agriculture, manufacturing, mining, transport and
technology. These changes had a major effect on cultural, social and economic conditions. It
subsequently spread all across the world. As the society expanded, a need for establishing
industries aroused. This need gave rise to household, cottage and small scale industry.
India was industrial backward country, it was because majority of the population where
engaged in agriculture and also due to the influence of colonial rulers.
At the time of British government the British engineer setup world 1st railroad line. The boom
in railroad had a deep effect on British society, the railroad boom helped business owners
move their goods to market very fast.
After independence (1947) government had to provide all the basic needs to the people.
Industrialization was taken in the 1st 5 year plan. 4000 crore was allocated for various sector
I.e. mining, social, services etc. attempts were made to optimally allocate the investment in
order to maximize economic growth in cotton textile manufacturing is generally recognized
as one of the oldest and most important industries in the history. Technology was rapidly
growing which leads India to become more aware of its opportunities. There were huge
mining and construction work is carried on for the development of buildings, railways, roads
and other facilities
There on the need for heavy equipments, earth movers, defence equipments were needed by
the government as well as the private builders. which lead to the establishment of more public
sectors like BHEL, HMT, BEML, HAL. The government wanted separate sector which
would focus mainly on the manufacturing of rail coaches and all its parts and in India is a
country which is second largest railways network. Hence rail coach serves many purposes.
The earth moving equipments industry is a global industry, and one of the common objective
of both the earth moving machines is to provide a safe and comfortable work place for the
workers who operates the machine. House construction is one of the very important factors
affecting for the market for earth moving equipments
The first metro rail in India was in Kolkata in the year 1984 the man behind this great effort
of work is the Elattuvalapil Sreedharan.
Need of metro rails:
India is the fastest growing population country in the world because of the higher growth in
population the increase and demand for transportation is very high hence metro rails helps to

solve the problems of transportation and it is very safe and ease mode of transportation. It is
very safe and accident free mode of transportation.
It helps in reducing the cost because it runs on electricity not of any flues.
it is time saving service where if we take any other means of road transport it is very fast and
one can save lots of time.
Special Features:
as we have seen in other railway system in India its basically only the trains are made of
completely from iron metal and only for few coaches air conditioner are available which cost
very high only few people can get the service who are wealthy, but in metro rails each and
every coach is fully air- conditioning and good ventilation system.
in the normal Indian railway system the ticket are to be purchased and the checking of those
tickets are done manually. on the other side in metro rails everything is done automatically by
machines. Without purchasing ticket nobody can enter into the train.
The train has automatically opening-and closing system and a public address system is
provided on the trains to announce approaching stations.
Operational metro system in India
The metro system is currently operational in 5 cities across India. Delhi is leading with
190kms of operational length and the construction for another 140kms is in progress. Kolkata
is the oldest system in India, whereas, Mumbai is the largest entrant in the league of metro
system in India. Gurgaon is the first metro project under public-private partnership mode.
Urban Extended Operational Under

State area(UA) UA length ground Elevated
2017 2017
Delhi 17,315,846 22,753,486 193.03kms 49.06kms 143.97kms
Mumbai 20,424,388 21,748,395 12.40kms - 12.40kms
Kolkata 16,112,637 15,617,882 26.66kms 18.00kms 9.55kms
Bangalore 9,699,499 9,728,907 17.07kms - 17.60kms
Gurgaon 976,824 (NCR) 6.10kms - 6.10kms

State Planned Underground Elevated Completed

Length by
Delhi(phase III) 150.00kms 56.00kms 86.00kms 2016
Mumbai(phase II) 42.20kms - 42.20kms Planning
Bangalore(phase II) 27.70kms 9.99kms 17.82kms 2015
Gurgaon (phase II) 8.40kms - 8.40kms 2016
Kolkata Expansion 19.65kms 10.12kms 10.53kms 2015
Sources of Funding in India’s metro rail sector
State givernment sub Private Participants Viability Gap

debt Government of 6% funding & Grants
3% india sub debt 5%
4%
State
government
equity
11%
Government of india
equity Private Participants
16% Debt
55%

This figure shows the contribution by type of funding for metro projects in Indian cities, and
is indicative of the general trend of percentage contribution from different sources. Private
participants debt is funding from organizations such as JICA, agence francaise development,
housing and urban development corporation limited, ILFS and other private financial
institutions.
The biggest slice, project debt, is raised on government guarantee, through budgets provided
either by sovereign wealth funds and/or via international agencies like JICA. This agency has
provided funds to the Delhi metro rail corporation and numerous other projects such as
Bangalore metro phase 1 and 2 and Mumbai metro phase 1.
Foreign Funding in India’s metro rail sector
Inflow of funds from

foreign INR GBP %
countries/foreign Million Billion Contribution
firms for
metro(Debt+Equity)
Japan 629500 7.1763 87.78%
France 78730 0.897522 10.98%
Canada 6063.2 0.06912048 0.85%
Britain 2870 0.032718 0.40%
Grand Total 717163.2 8.176

Canada, 0.85%
France, 10.98% Britain, 0.40%
Japan, 62.60%
This figure shows the distribution of foreign funding in India’s metro rail sector. Japan leads
in this, following by France and Canada and then the United Kingdom.

Company profile:
Bharath Earth Movers Limited (BEML) it is a public sector undertaking started in year 1964
(may) to manufacture rail coaches and spare parts and few mining equipments in Bangalore
complex. the government of India holds majority of its shares i.e. 54% and the rest 46% is
held by public, banks, foreign institutional investors financial institution and the employees
of BEML. Defence, rail, mining, power and other infrastructure etc "Miniratna category 1"
plays a vital role.
the company is established with the turnover of Rs 50000000 DURING 1965 and at present
the company have achieved a tremendous turnover of more than Rs 35000 cr.
The company operates in mining, rail and metro, defence, and construction.
Rail and metro business:
BEML Limited’s Rail Coach Factory situated in Bangalore, India is the first all steel
integrated rail coach factory established by Government of India during 1948. It was set up
with the assistance and technical know-how imparted by M/s. Man, Federal Republic of
Germany. This factory was established to indigenously manufacture the passenger rail
coaches (of broad gauge) for the use of Indian Railways.
The factory was under the administrative control of M/s. Hindustan Aircraft Limited (now
M/s. Hindustan Aeronautics Limited) which was later transferred to BEML Limited (earlier
known as Bharat Earth Movers Limited) on 11th May, 1964.
Fast forward
During the implementation of the first urban transit project by DMRC for its Phase-1, BEML
and Rotem signed a Technical Collaboration Agreement during 2002 and BEML became the
first to indigenously manufacture Metro Cars for DMRC RS1 contract and manufactured
220Nos. Metro Cars.
Later, in order to indigenize the manufacture and integration of Metro train sets, BEML
obtained a developmental order from DMRC to develop 8Nos. intermediate cars. The
successful completion of this developmental order strengthened BEML as an indigenous
source for Metro Cars.
As on date, BEML has supplied over 1,100 Metro Cars for various projects in India. BEML’s
efforts in successful completion of indigenization of Rolling Stock and the augmentation of
its production facilities have been lauded by the customers.
With the experience gained in manufacture, integration and testing of Metro Cars, BEML
expanded its role in Metro Business and is commanding a good market share in India
Since inception, this Rail Coach Factory has manufactured & supplied over 17,000Nos.
Mainline passenger coaches of various types for long distance mainline routes of Indian
Railways. In addition, BEML has been manufactured and supplied over 800 Nos. of

Electrical Multiple Units (EMUs) to Indian Railways for use in its sub-urban and mainline
routes. BEML has also manufactured and supplied self-propelled equipment viz., 20Nos. Rail
Bus (for public transport), over 40 Nos. other maintenance vehicles to Indian Railways and
over 120 Nos. 8W-DHTCs (for OHE inspection & maintenance), to Indian Railways and
various Metro Corporations of India.
BEML limited (formerly known as Bharat Earth Movers Limited) as a full-fledged

corporation was established in 1964 with Bangalore Complex as the mother unit. The
Bangalore Complex (the then Rail Coach Factory) was in existence from 1947 as a part of
Aircraft Factory (currently Hindustan Aeronautics Limited). Initially, the division was
manufacturing Rolling Stock producing various models of Broad Gauge Coaches.
Subsequently, over the years, the metro coaches and some of the defense products
manufacture also has been added in this complex. The products manufactured at Bangalore
Complex are:
Rail &Metro
 Stainless Steel Metro Cars
 Passenger Coaches
 DC Electric Multiple Units
 AC Electric Multiple Units
 Overhead Equipment Inspection Cars
 Rail Bus
 Treasury Vans
 Spoil Disposal Units
 Track Laying Equipment
 Sky Bus
 MIL Rail Coaches
 Utility Track Vehicle (UTV)
Manufacturing facility:
The complex has large sophisticated machines such as CNC Turning Center, CNC Boring
machines, Vertical Turret lathes and Honing machines in addition to General purpose
machines. The dedicated machines are:
Machine Shop
 Boring machines for Axle box
 AF / Axle Box spring seat machining
 Wotan internal grinding machine for Axle box
 Vertical turret lathe for Axle box machining
 Honing machine
 Flash butt welding machine for Brake Tension rod

 Hydraulic press 100 T for Bush pressing

Sheet Metal
A well-established Sheet metal shop has a band of special machines and dedicated machines
 Laser cutting machine
 NC shearing machine
 Punch press: 40 - 1000 T
 Press Brake: 40 - 500T
Material Preparation
 Optical tracer flame cutting machines
 CNC Flame cutting machine
 Shot blasting machine for (Rolled section & Plates)
 Shearing M/C to 30 mm capacity with inbuilt Beveling for weld joints
Sub Assembly
 Spot welding machine
 Shot blasting machine (Rotary & conveyor type)
Under Frame
 Foil Roll welding machine for welding of corrugated sheets used for Floor
 Corrugated rolling machine
 Plasma Cutting machine
Bogie
 Submerged Arc welding sets
 Check & straightening machine for Bogie components
Major Assembly & Erection Shop
 Robot Spot Welding Machine
 Roller bending machine for roof skins
 Foil Roll-Welding M/C for Roof, Side wall & End wall of Rail coaches
 Roof leak test facility
Pre-treatment & Painting Shop
 Conveyorised painting booth
 Shot Blasting facilities for Rolled Sections and plates
Coach Delivery Shop
 Lifting jacks of 16 T capacity
 Air brake testing equipments (4 numbers)
 Traverses of 75 T capacity (2 numbers)

 Water leak test facility for Metro cars

Dedicated Facilities
 248 M Test track for Metro and AC-EMU testing
 Bogie testing machine up to 60 Ton capacity
 Well-established metrological laboratory for Quality products
 Well-laid Railway lines inside the production shops for smooth stage production
 Railway sidings for delivery of coaches and receipt of raw materials
Welding Fabrication and Associated Facilities
 Electrical resistance Foil Roll butt machines
 Electrical resistance spot welding machine
 Flash butt welding equipment
 Pulse tig-welding machine
 Auto and semi auto submerged Arc welding
 CO2 welding sets of capacity of 400 AMPS
 Thermal stress relieving furnaces
 Radiographic and Ultrasonic tests on welded structures
Promoters:
Chairman and Managing Director D K Hota
Nominee (government) Sanjay Prasad
Independent director B P Rao
Independent director Sudhir kumar Beri
Director Defense R H Murlidhara
Nominee (government) Surina Rajan
Company secretary S V Ravishikar Rao
Director(mining&constraction business) B R Viswanatha
Director (finance) Shri. Pradeep Swaminathan
Director (Rail & metro enterprise) Shri. Aniruddh Kumar

Vision:
To become a market leader, as a diversified company supplying products and services to
mining and construction, railway and metro and defence services and emerge as an
international player.
Mission:
Improve competitiveness through organizational transformation and collaboration/strategic

alliances /joint ventures in technology.
Grow profitable by aggressive pursuing opportunities in national and international markets.
Attract and build people in a rewarding and inspiring environment by fostering creativity and
innovation.
Quality policy:
BEML gives most important to quality. It remains under the supervision and constantly keeps
a check on the quality of goods and services. A BEML total quality management (TQM) has
been inducted into its corporate quality policies. It has also taken a step further by setting up a
separate quality department to supervise over the TQM.
All the manufacturing units of the company have been awarded the ISO 9001-2008 quality
management system (QMS) and ISO 14001-2004 certification to the KGF complex ,
Bangalore complex and Mysore complex which is an environmental management system
(EMS) . in addition to there , the Bangalore complex is certified for BS OHSAS 18001-2007
OHSAS (Occupational Health & safety assessment series). And also the Mysore complex is
certified for AS9100C aerospace certification for its engine division.
Currently, all the manufacturing units are preparing themselves for up-gradation to ISO
revised standards of 2015.
The company strongly adopts total quality management (TQM) they not only follow it
strongly but also adopt it as a culture. The main principles that are adopted by the company
are standardized, Kaizen, Policy development, Total employee involvement and training and
education. They consider this as their five pillars to achieving TMQ.

Product profile:
Mining and construction:-
 Crawler Dozers
 Wheel Dozers
 Excavators
 Dump Trucks
 Loaders
 Backhoe Loaders
 Pipe layers
 Sprinklers
 Graders
 Under Ground Mining
 Tyre Handler
 C-Crane
Rail & Metro
 Stainless steel metro cars

 Passenger coaches
 AC Electric multiple units
 Stainless steel AC EMUS
 DC Electric multiple units
 Rail bus
Defence
 Boat with BEML engine and gear box .

 TARA 4*4 truck with euro-!!
 Aircraft towing factor-BA18T, BA28T
 Snow cutter

Areas of operations:
BEML operates on three major business verticals for associated equipment manufacturing
Mining and construction
Defence
Rail and metro
In addition to the above there are two strategic business units (SBUs):
Trading divisions for dealing in non-company products .
International business division for export activities .
The company business division for export activities .The company has 9 manufacturing units
spread over the following location.
 Kolar gold fields(KGF) complex

KGF complex is in kolar around 100km from Bangalore and it was started at 1964
Earth moving division
Rail coaches unit 2
Heavy Fabrication unit
Hydraulic and power line division
 Mysore complex
It was started on 1986 and located around130km from Bangalore
Truck division
Engine division
Aerospace Manufacturing division
 Bangalore complex
Rail and metro
Defence
 Palakkad Complex
Palakkad complex started on may 16th 2010 at kerala, within a 6 months get outlay of
260crores .

It was supply a products like railway coaches and tetra truck.
Defense products
Rail products
 Vignyan Industries
VIL is a subsidiary of BEML , VIL established at Tarikere in chikmagalur district and it was
supply products like railway coaches and tetra truck
Infrastructure facilities
1. Welfare department
 Scholarship for meritorious children of employees.

 Canteen facility at subsidizes rate.
 Recreation facility like sports.
 Issuer to inform and safety appliance
2. Medical facility
Company is providing medical facility to workers and this departments. They established
modern medical facility and also medical centers. There is provision for referred and non-
referred cases for employees and their families. Post retirement medical benefits to its retired
employees provided by BEML ltd.
3. Canteen facility
BEML in providing good canteen facilities to its employees and executives of a company and
they are separation of canteen facility to workers and executives. Company is providing
healthy food and with a high quality. They are providing snacks, beverages and food with a
low price.
4. Safety Department
 Preparing accidental statistics report

 Safety inspection
 Conducting safety protection
 Providing safety precaution to avoid accident.
 Allotment of safety officer for every 1000workers.
5. Other Facility
Company is providing transportation facilities, sports and entertainment and library facilities
to its employers and executives.

Competitor’s information:
Competitors to BEML are in domestic and international market they are:
 Caterpillar INC
 Hindustan Motors
 JCB(Joseph Cyril bamfora)
 Tatra Udyog
 Hitachi
 Terex
 HAL
 Komaksu
 Siemens Germany
 Waspo
 Bombardain

SWOT analysis:
Strength:
It is public sector unit and instead of it has very outstanding manufacturing facilities.
The company has wide sales across the country.
The company is not only in metro but also diversified into logistics, vehicles, and other
solutions based operations.
The company manufactures a variety of products to fulfil the needs and wants of the
customers i.e. mining, construction, fertiliser, cement, irrigation, power, rail & steel sectors.
Weaknesses:
Few of the units of BEML is not performing well.

It is a public sector unit so it does not allow for capital expansion.
Opportunities:
In Asia the residential sector is growing very high.
The BEML could open up huge opportunities for the export policy.
The company can boost company performance by encouraging government policies.
Threats
The foreign players like Komatsu, Nissan, and Cummins are the major competitors
The scams and the bad controversies may weaken the company’s brand image.
Balance sheet:
EQUITY AND LIABILITIES 2016 2017

Share Capital 41.77 41.77
Share Warrants & Outstanding
Total Reserves 2,139.78 2,087.28
Shareholder's Funds 2,181.55 2,129.05
Long-Term Borrowings 0.00 0.00
Secured Loans 300.00 307.34
Unsecured Loans 10.52 55.32
Deferred Tax Assets / Liabilities -111.18 -103.71
Other Long Term Liabilities 342.31 363.02
Long Term Trade Payables 0.00 0.00
Long Term Provisions 174.94 160.64
Total Non-Current Liabilities 716.60 782.61

Current Liabilities
Trade Payables 496.85 411.47
Other Current Liabilities 928.65 634.75
Short Term Borrowings 112.85 153.67
Short Term Provisions 162.43 148.88
Total Current Liabilities 1,700.79 1,348.77
Total Liabilities 4,598.95 4,260.43
ASSETS
Non-Current Assets 0.00 0.00
Gross Block 682.94 597.89
Less: Accumulated Depreciation 112.08 53.44
Less: Impairment of Assets 0.00 0.00
Net Block 570.86 544.46
Lease Adjustment A/c 0.00 0.00
Capital Work in Progress 79.42 58.83
Intangible assets under development 0.00 45.05
Pre-operative Expenses pending 0.00 0.00
Assets in transit 0.00 0.00
Non Current Investments 2.58 2.58
Long Term Loans & Advances 117.66 234.37
Other Non Current Assets 0.97 1.03
Total Non-Current Assets 771.50 886.32
Current Assets Loans & Advances
Currents Investments 0.52 0.62
Inventories 1,974.46 1,696.28
Sundry Debtors 1,430.37 1,207.17
Cash and Bank 14.01 65.79
Other Current Assets 147.85 187.23
Short Term Loans and Advances 260.25 217.02
Total Current Assets 3,827.45 3,374.11
Net Current Assets (Including Current 2,126.66 2,025.34
Investments)
Total Current Assets Excluding Current 3,826.93 3,373.49
Investments
Miscellaneous Expenses not written off 0.00 0.00
Total Assets 4,598.95 4,260.43
Contingent Liabilities 766.51 1,115.88
Total Debt 435.71 567.60
Book Value (in ₹) 523.82 511.21
Adjusted Book Value (in ₹) 523.82 511.21

Chapter 2

Conceptual background and literature review:
Conceptual background:
Performance appraisal:
“Performance appraisal is the process of defining expectations for employee’s performance;
measuring, evaluating and recording employee performance relative to those expectations;
and providing feedback to the employee.”
“Performance appraisal is a systematic, periodic and impartial rating of an employee’s

excellence in matters performing to his present job and his potential for a better job.” –
Edwin B Flippo.
Objectives of Performance Appraisal:

To develop inter-personal relationship between manager and employees.
To motivate the employees to achieve the goals/ target.
To identify the need for training for the employees for efficient work.
To clarify the expectation from the employees.
To give the effective feedback.
To allocate rewards based on their performance.
The following reasons explain the need for making appraisals:

1. To know the quality of managers:
2. To put right man on the right job:
3. To re-structure the organisation:
4. To give feedback to employees:
5. To develop employees
6. To recommend rewards/transfers:
Persons Responsible for Performance Appraisal:

There are different approaches to the responsibility of conducting a formal performance
appraisal:
1. Performance appraisal by superiors:
2. Performance appraisal by a group of superiors:
3. Performance appraisal by the peer group:
4. Performance appraisal by subordinates:

Methods of Performance Appraisal:
Traditional Methods:
It is a method is a very older method of evaluating the performance of the employee, this
method is used to study the personal qualities of the workforce. Which include the loyalty,
leadership quality, decision making ability, knowledge, initiative etc
1. Ranking Method: According to Dessler etal. (2011), ranking method is ranking

employees from best to worst on a particular trait, choosing highest, then lowest, until all
ranked. This method is very simple and very clear.
.
2. Graphic Rating Scales: In 1922, Paterson working with the employees of the Scott
Company developed a graphic scale to provide the reliability, consistency over time,
usefulness and practicality. Bradshaw in 1931 discussed improvements to the graphic rating
scale that included “behaviourism” to anchor the scales and help better illustrate the trait. In
1972, Flynn told that the five to nine scale points result in the highest quality of ratings.
According to Dessler etal. (2011), Graphic Rating Scale is a scale that lists a number of traits
and a range of performance for each. The employee is then rated by identifying the score that
best describes his or her level of performance for each trait.
3. Critical Incident Method: The technique was formally codified by the works of Fitts and
Jones in 1947 for classifying pilot error experiences in reading and interpreting aircraft
instruments. Fitts and Jones used the term “errors” rather than “critical incidents”. As
opposed to Fitts and Jones way of collecting data, data gathering during task performance is
now considered a defining criterion for critical incident methods. The work of John Flanagan
in 1954 became the landmark critical incident technique, after his title entitled “The Critical
Incident Technique” appeared in the psychological bulletin. Flanagan (1954) defined the
critical incident technique as a set of procedures designed to describe human behaviour by
collecting description of events having special significance and meeting systematically
defined criteria. Flanagan originally used trained observers to collect critical incident
identification. Identification of the critical incidents during task performance can be a
individual process or a mutual process between user and evaluator. According to Dessler
etal.(2011),Critical Incident method is keeping a record of uncommonly good or undesirable
examples of an employee’s work related behaviour and reviewing it with the employee at
predetermined times.
4. Essays method: Evaluator writes an explanation about employee’s strength and weakness
points, previous performance, positional and suggestion for his (her) improvement at the end
of evaluation time. This technique mainly attempt to focus on behaviour.
Modern Methods:

Modern Methods were devised to improve the traditional methods. It attempted to improve
the shortcomings of the old methods such as biasness, subjectivity, etc.
5. Management by Objectives: In1954, Peter F. Drucker introduced “Management By

Objective” in his book “The Practice of Management”. It comprises of three building blocks:
object formulation, execution process and performance feedback. In 2000,Weihrich
suggested a new model: the system approach to MBO(SAMBO).SAMBO comprises seven
elements: strategic planning and hierarchy of objects, setting objectives, planning for action,
implementation of MBO, control and appraisal, subsystems, and organizational and
management development.
6. Behaviourally Anchored Rating Scale (BARS): BARS were introduced by Smith and
Kendall in 1963 with the attention of researchers concerned with the issue of reliability and
validity of performance ratings. Behavioural anchor scales are more informative than simple
numbers. Behaviourally anchored performance dimensions can be operationally and
conceptually can be distinguished from one another. Rater will act as observer not the judge.
BARS help rater focus on specific desirable and undesirable incidents of work behaviour
which can serve as examples in discussing a rating. BARS use behavioural statements or
concrete examples to illustrate multiple levels of performance for each element of
performance.
7. Humans Resource Accounting: The concept of human resource accounting was first
developed by Sir William Petty in 1691.But research into true human resource accounting
began in the 1960 by Rensis Likert. Prof. Flamholtz defines human resource accounting for
people as an organizational resource. The main theory underlying the HRA is: The people are
valuable resources of an organization or enterprise, information on investment and value of
human resource is useful for decision making in the organization. This paper aims at
analyzing the application of human resource accounting in heavy industries covering the
period from 2001-2010.In1965, both Cronbach & Glaser and Naylor & Shine developed
models for estimating the financial utility of personnel selection and used the concept of
„utility analysis‟. In 1966, Grojer and Johnson embrace both HRA and UA; suggest the
concept of human resource costing and accounting. Another method of human resource
accounting is human resource value accounting.
8. Assessment Centres: The assessment centre method, in its modern form, came into
existence as a result of AT & T Management Progress Study by Bray, Campbell & Grant in
1974.Common job simulations used in assessment centres are in basket exercises, group
discussions, simulations of interviews with “subordinates” or “clients”, fact finding exercises,
analysis/decision making problems, oral presentation exercises, written communication
exercises.

9. 360 Degree: It is a popular performance appraisal technique that involves evaluation input
from multiple levels within the firm as well as external sources.360 Degree feedback relies
on the input of an employee’s superior, colleagues, subordinates, sometimes customers,
suppliers and/or spouses. It provides people with information about the effect of their action
on others in the workplace. It provides a notion of behavioural change might be elicited
through a process of enhanced self-awareness.
Process of Performance Appraisal:
Performance appraisal process consists of the following steps:
1. Goal setting:
Goals are set for appraising performance which becomes standards. Standards should be
applicable, adequate and objective. There should be scope for stretching human abilities.
They should be high but reasonable and attainable in a given situation.
2. Measure performance:
Once standards are set, next job is to measure performance against standards. Measurement
can be annual, periodic or continuous.
3. Find deviations:
Managers observe actual performance of employees, look at the environmental conditions
and find deviations in performance.
4. Corrective action:
Some deviations are desirable and some are undesirable when compared against goals/
standards. Corrective actions are taken and in some cases, the goals are modified.
Diagrammatically, the performance appraisal process/control chart can be shown as

follows:

Barriers to Performance Appraisal:

The following barriers may arise in making appraisals:
1. Despite best efforts to be objective in making appraisals, appraisers’ may become

subjective in their judgment.
2. Appraisals based on the assumption that appraisal system is perfect cannot give accurate
results. Targets and techniques of appraisal cannot be standardized forever.
3. Holding personal opinion about appraises can make appraisals a mere formality.
Appraisers do not spend sufficient time in designing the appraisal system and completing the
appraisal forms. This lacks a systematic review of performance, both present and potential.
4. Appraisal is like a check on employees’ performance. Therefore, they may be resistant to
appraisals. They often tend to provide faulty or disguised information about their
performance. This makes appraisal ineffective in nature.
5. Sometimes, appraisals are affected by psychological blocks to appraisals.

Literature review:
1. Landy etal (1978), Klasson etal (1980): They said that the evidence and the assignment
which influenced and rate the perception, which should be fair and the accurate of the
performance appraisals is the nothing but a complete process.
2. Ilgenet. Al (1979): He said that the employees will majorly believe that performance
appraisal is a kind of biased and most of the employees do not get motivated but instead they
are dissatisfied by their works and even time being they leave the job when they are not
satisfied.
3. Jacobs, Kafry & Zedeck (1980): The author said that the employees only perceived that
performance appraisal is just the instruction which gives a clear and proper understanding of
their roles, responsibilities and duties towards the organization. And on the other hand the
organization observed it as a very effective tool to assess employees on common ground so
that it helps to give the base to get hike in their salary and promotion decisions, training and
development programs.
4.Dulewicz (1989) says that there is an indispensable human inclination to judge the work of
other people as well as one's own work. It can thus be said that appraisal is both unavoidable
and universal. Even without the existence of a planned appraisal system, one can have a
tendency and find it natural to evaluate the job performance of another easily and
subjectively.
5.Plachy (1993) defines a job as a common definition of tasks that are the same whoever
carries them out, while a role is a broader definition of requirements covering the
contribution people make in achieving objectives, reflecting the different contribution
individuals make, as well as the purpose of what they are doing. This move has supported the
inclusion of competencies in appraisal and development processes. It has also encouraged
some employers to link job tasks and competency development in a single role profile
document.
6. Randell (1994): identified its use in Robert Owen's use of "silent monitors" in the cotton
mills of Scotland. The Silent monitors were in terms of blocks of wood with different colours
painted on each visible side and it was hung above each employee's work station. At the end
of the day, the block was turned so that a particular colour, representing a grade of the
employee's performance, could be seen by everyone.
7. Karol (1996): performance appraisal includes a communication event planned between a

manager and an employee specifically for the purpose of assessing that employee's past job
performance and discussing areas for future improvement.

8. Igvarson and Chadbourne (1997): argue, based on the ineffectual experiences of

implementing appraisal for teachers in Australia that the active support of staff, and adapting
systems to meet local needs, are both essential requirements for success.
9. Coens and Jenkins (2000): thought that de-cluttering performance appraisal could best be
achieved by going further still by focusing on final customer outcomes. In their work for the
Police Department in Madison, Wisconsin, this means the citizen.
10. T. R. Manoharan (2002): has written in this article authors have discussed that they have
noticed that in many organizations appraisal systems are:
(a) Not relevant to organizational objectives,
(b) subject to personal bias,
(c) Are often influenced more heavily by personality than by performance.
To eliminate these negative things there is a attempt with a computer based tool called Data
Envelopment Analysis (DEA) which is used in the working place to evaluate the performance
of employees. Sample size is 23 employees. A DEA study provides the following four
properties (Paradi, Smith & Schaffnit-Chatterjee 2002).
11. Grote (2002): describes performance appraisal as a formal management tool that helps
evaluate the performance quality of an employee. Schneier and Beatty as cited in Patterson
(1987) define it as a process which apart from evaluating also identifies and develops human
performance.
12. Research by De Waal (2003): emphasises the importance of behavioural factors in

implementing a successful performance management system, which relates to the
involvement of staff in the development, implementation and use of performance
management process.
13. Martinez (2005): also found through research at an electricity company that at a tactical
level, the performance review process can become ‘monotonous’, which means that
managers have to ‘continuously refresh the way in which performance is reviewed to keep it
interesting and attractive’. This meant that the leadership of managers played an important
part in the success of the system.
14. Graeme Redshaw (2008): has written in this article is about to improve the performance
appraisal system of nurses in organization. Author distributed questionnaire to 8 nurses to
know about the performance appraisal system of the organization. 7 nurses were nervous
before the appraisal and 1 was confident after the appraisal all nurses were agreed with the
outcomes of appraisal. If the successful appraisal system is established so there will be clear
aims and objectives, and will be able to implement fairly. Proper training will be provided to
the managers to appraise the staff correctly.

15.Diane Shaffer(May 11, 2009): has written in his article writer has discussed that
motivation and performance appraisal are interrelated. Motivation is dependent on
performance management. Employees who are motivated and happy with their jobs want to
stay connected with the company for a long time. Many organizations have not implemented
correct performance appraisal system to evaluate the performance of employees. Author has
discussed here that they should implement a successful appraisal method/system and also
give reward to employees who perform good in the organization. Through this practice
employee become motivated towards their jobs and improve their performance and
performance of organization as a whole will also improve.
16. Almuth McDowall (2009): has discussed in his article that due to the high level of
competition training and development has become very important of globalization so it is
playing a key role for the organization to get competitive advantage. While selection of
activities including coaching, 360 degree appraisal and development centers (DCs) are
become linked to development. In this article 360 degree appraisal has been discussed that it
is very important to give the feedback to the employees about their performances. Positive
feedback motivates the employees and they become more willing to work for further
development programs. The authors examine different development activities with the aim
being to provide a framework with which to assess effectiveness. They compare the processes
incorporating a range of significant factors and highlight several important implications that
arise for any aim to meet organizations.
17. Donald L. Caruth (2009): has discussed that the purpose of this paper is to demonstrate
the need for and propose a more aligned and integrated standard for performance evaluation
to enhance effective strategic control. The paper reviews the various issues creating
discontent with the performance appraisal systems within many organizations and
demonstrates how these problems inhibit successful strategic control. It attempts to cogently
incorporate the performance appraisal characteristics needed for the exercise to function as a
critical organizational control metric and a useful feedback mechanism for strategic
management of the firm. The paper finds that, whereas performance evaluation has received
reasonably robust examination in the human resources literature, explicit guidance toward the
integration with strategic control is inadequate. Without consistent alignment between these
functions, however, performance appraisal becomes an exercise in futility instead of a vital
control measurement, often resulting in not only personnel dissatisfaction, but also, more
importantly, an impediment to systematic strategy implementation.
18.H.C. Shiva Prasad(2010): in this research paper authors have done work to check the
performance of Indian software professionals (SPs) Data were collected from 441 software
and senior software engineers from eight Indian software firms. The team leaders assessed
the performance of software and senior software engineers on 16 items. The exploratory and
confirmatory factor analyses of scores on 16 items of the instrument suggest six dimensions
of performance. They are work-efficiency, personal resourcefulness, inter- and intra-personal
sensitivity, productivity orientation, timeliness, and business intelligence. The dimensions

have reliability and high convergent validity. SPs having more years of experience, higher
need for achievement, and higher need for social power are high performers. Human resource
managers can evaluate the performance of SPs holistically on six dimensions for training,
reward administration, job rotation, and promotion decisions.

Chapter 3

Research design:
STATEMENT OF THE PROBLEM
All organizations aim at being effective and achieving their goals, in order to do this, it is
important to monitor or measures the performance of the employees on a regular basis.
Effective monitoring also includes giving timely feedback, reviewing the performance
according to pre-determined standards, timely recognition of the accomplishment etc. Thus,
performance appraisal system is a very predominant component of overall human resource
development system in any organization. It is often regarded as the most critical function of
human resource management. The need of effective performance appraisal in institution have
been emphasised in recent times. This study therefore aims at analyse the effectiveness of
performance appraisal system in BEML; also determine the shortcoming or challenges of the
process.
Human beings are the most important asset of the organization. Thus their perception and
satisfaction is very important. Thus study aims to analysis the perception of employees
regarding the appraisal process.
NEED FOR THE STUDY
Obviously job satisfaction plays a key role in organization’s success. Without employee
satisfaction towards their job none of the employee will perform well and it is very difficult
to reach the organizations goals and objectives. Hence, job satisfaction helps to yield
maximum output (performance) from the employees. So that this study is undertaken to
measure satisfaction level of employees towards their jobs in KPCL.
OBJECTIVES OF THE STUDY
 To study the present performance appraisal system of the organization.

 To analyze the effectiveness of the existing performance appraisal system.
 To state the shortcomings/challenges of the present performance appraisal system.
 To high lighten the perception of the employees regarding the performance appraisal
system.
 To suggest latest and appropriate methods of evaluation.

SCOPE OF THE STUDY

Performance appraisal serve as a yardstick to plan promotions, salary revision, promotion
empowerments, training and development, and also demotions and terminations. They also
help superiors to narrate an employee about its performance and suggesting or guiding
needed changes in his behaviour, attitude, skills, knowledge, and dedication. Performance
assessment reports are always a basis for the coaching and counselling of individuals by the
organization, and also they act as a self-motivating tool.
 The present study has been undertaken to study and find out the expectations and
satisfaction level of employees at BEML.
 the study can be used to bring out the solution for the a problem faced by the
employees with regard to the appraisal system.
 Through the study, company would be able to know the satisfaction level of
employees towards the performance appraisal system.
RESEARCH METHODOLOGY
For pursuing any research there should be a proper research methodology. A detailed plan of
the research methodology is provided below:
Research method: Descriptive research
Descriptive research: Descriptive research, is used to describe characteristics of employees

been studied in the organization. The purpose of using the descriptive research method is to
acquire accurate, factual, systematic data that can provide with an actual picture of the data
set that are reviewed.
Area of study: BEML, Bangalore
Sample size: 52 employees
Source of data: The data is collected through primary data.
Primary data: primary data are original and fresh data which are collected through survey
from employees using questionnaire.
Secondary data: it includes information collected from records, books, internet, journals and
also investigation of the company manual. This was mainly used to study the present
performance appraisal system at BEML.
Sampling techniques: sampling technique used is convenient sampling technique.

Convenient or accidental sampling is a type of non-probability sampling which involves the

sample being drawn from that part of the population which is close to the hand. That is, a
sample population selected because it is readily available and convenient.
Plan of analysis: After collecting the filled up quarries and proper scrutiny, the data was
complies, classified and tabulated. It is converted into percentage and graphs are prepared to
facilitate comparison.
LIMITATIONS OF THE STUDY
 Geographical limitation: The samples space was taken only from Bangalore complex
BEML. Thus the finding and suggestion are limited only to Bangalore complex.
 Time factor: interaction with the employees was very limited due to their busy work
schedule.
 Sample space: due to limited time, not all employees were included for the survey.
The research was conducted only on a small size of 52 employees.
 Employee hesitation: employee feedback may not be 100% reliable and accurate.
Sometimes, employees withhold information that may be detrimental to the image of
the organization. Also some employees may fear their superior and thus refrain from
furnishing any negative data.
 Assumption: analysis is done on the assumption that the responses collected are
correct.
Performance appraisal system at BEML.
1. Employee level:
EMPLOYEE SERVICE RECORD (ESR): Employee service record for those covered under
certified standing orders of the company. ESR is for non-executives or employees of BEML.
It includes employees in wage group S4 and below.
Coverage: The performance of an employee who covered under the standing orders of the
company via wage group A to S4 is assessed for the calendar year i.e., for the period ending
31/12 every year.
The report is generated by the competent authority and who has direct knowledge of the

working of the employee during the period of assessment. The report is also reviewed by the
higher authorities before it is formalised and sent to the concerned HR department for further
action and records.
Objectives of ESR:
For determining the suitability of the concerned employee for the promotion to higher grades
or for any other relative purpose.
For taking action to communicate to the employee concerned about shortcomings if any.
Attributes on which employees are assessed
Performance
Dependability
Attendance and punctuality
Conduct
Co-operation
Initiative
House keeping
Health and presentability
Leadership
2. Executive level:
Employees from grade 1 to 10 come under the cadre of executives. And they are divided as
follows.
Grade 1, 2, 3&4
Grade 5, 6, 7, &8
Grade 10& above
1. Grade 1, 2, 3, &4
This grade consists of junior level managers. The appraisal form consists of 6 parts.\
Part 1- here their performance id evaluated on the basis of various tasks and activities
performed by the appraise as a part of his/her responsibilities relating to his job.
Parts 2- the key contributions of the appraise during the year are listed with elaboration.
Parts 3- Assessment of job related attributes

Job knowledge/ knowledge up gradation
Man management & execution
Quality, cost T time consciousness
Customer orientation

Part 4- overall performance rating

{Outstanding, very good, good, average, below average & poor}
Part 5- comments by accepting authority.
Part 6- evaluation of performance by the moderation committee

2. Grading 4,5,6,7&8
This grade consists of managers, general managers, etc. the appraisal form consists of 11
parts.
Part 1- KPAs (key performance areas) should be precise and SMART (specific, measurable,
achievable, related to job, time/outcome specific) the KPAs should be set in mutual
agreement between the appraise and reporting officer.
Part 2- assessment of job related critical attributes

Conviction to achieve
Planning & decision making
Ideation & effective solution
Embracing change
Effective teaming
Customers focus etc.
Part 3- the significant contributions during the period of assessment are listed with
elaboration.
Part 4 to 10- observations & comments of superior officers
Part 11- evaluation of performance by the moderation committee

3. Grade 9 & above:

This grade consists of chief executives, functional directors, executives directors etc. this
appraisal form includes basics information of the appraise, self-appraisal, appraisal of the
reporting officer, review by the reviewing officer and acceptance by the accepting officer.
Competent authority for assessment:

The reporting, reviewing and accepting levels for the different grade are as follows:

Grade Reporting officer Reviewing officer Accepting authority

1, 2 & 3 The immediate The next higher level The next higher level
superior executive authority to reporting authority to the
officer reviewing officer
(HOD)
4&5 The immediate The highest authority ED/ Complex head
supervisor executive below the accepting
officer in the
reporting hierarchy
6&7 The immediate The highest authority Director
supervisor executive below the accepting
officer in the
reporting hierarchy
8 & above ED/ complex head Director CMD

CHAPTER SCHEME
Chapter one titled as Introduction begins with the discussion on Industry profile and
Company Profile, Vision, Mission and Quality Policy, Product/Service Profile, Areas of
operation, Infrastructure facilities, Competitors’ information, SWOT analysis, Future growth
and prospects and Financial statement.
Chapter two titled as Conceptual Background and literature review contains Theoretical
background of the study and Literature review.
Chapter three titled as Research Design includes Statement of the problem, Need for the
study, Objectives, Scope of the study, Research Methodology, Hypotheses, Limitations and
Chapter scheme.
Chapter four titled as Analysis and Interpretation speaks about Analysis and
Interpretation of the data-collected with relevant tables and graphs.
Chapter five is all about Findings, Suggestion and ends with the Conclusion.

Chapter 4

Data analysis and interpretation:

1. What is performance appraisal in your views?
Options Respondents In %
Evaluation of the employees 28 53.85
Promotion of employees 6 11.54
Job satisfaction 10 19.23
Motivation 8 15.38
Total 52 100
Performance Appraisal
I Evaluation of the employees Promotion of employees Job satisfaction Motivation
n
t
e 15%
r
p
19%
r 54%
e
t
12%
a
t
i
o
n
Interpretation:
In the above chart it shows that 54% of the employees felt that performance appraisal
is a process of evaluating the performance of the employees within the organization,
whereas 12% held the opinion that performance appraisal is nothing but a method
used for promotional concept within the company. On the other hand 19% of the
employees opinion is that performance appraisal is that where the employees are
satisfied with their jobs and only 15% of the employees is that it’s a motivational
factor.
This chart clearly indicates the importance of performance appraisal towards overall
achievement of the BEML Company.

2. Do you receive any hike in your pay after performance appraisal?
Yes 24 46.15
No 28 53.85
Total 52 100
increment in salary
I Respondents In %
n
t
e
r
p
53.85
r
46.15
e
t
a
t 28
24
i
o
Yes No
n
Interpretation:
In the above chart its clearly signifying that 46.15% of the respondents agree but on
the other side where the majority of the respondent I.e. 53.85% where disagree with it.
Hence in BEML after performance appraisal the employees say that they increment in
your salary after performance appraisal

3. Do you think performance appraisal help to provide an atmosphere where all are
encouraged to share one another burden?
Yes 32 61.54
No 20 38.46
Total 52 100
Respondents In %
61.54
38.46
32
20
Yes No
Interpretation:
the other side where the major portion of the respondent I.e. 38.46% where disagree
with it.
Hence in BEML after performance appraisal the employees felt that performance
appraisal help to provide an atmosphere where all are encouraged to share one another
burden.

4. Do you think performance appraisal helps people set and achieve meaningful
goals?
Yes 30 57.70
No 22 42.30
Total 52 100
GOALS
Respondents In %
57.7
42.3
30
22
Yes No
Interpretation:
In the above chart its clearly signifying that 50.7% of the respondents agree but on the
other side where the majority of the respondent I.e. 42.3% where disagree with it.
Hence in BEML after performance appraisal the employees say that performance
appraisal helps people set and achieve meaningful.

5. Do you think performance appraisal give constructive criticism in a friendly and

positive manner?
Yes 42 80.77
No 10 19.23
Total 52 100
140
120
100
80.77
80
60
40
42 19.23
20
10
0
Yes No
Respondents In %
Interpretation:
Hence in BEML after performance appraisal the employees say that performance
appraisal give constructive criticism in a friendly and positive manner

6. Do you think that after the process of performance appraisal employees improved
their performance?
Yes 44 80.62
No 8 19.38
Total 52 100
Respondents In %
I
n
t
e
r
p
r 80.62
e
t
a
t 44 19.38
i
8
o
Yes No
n
Interpretation:
In the above chart it’s clearly signifying that 80.62% of the respondents agree but on
Hence in BEML after performance appraisal the employees say that performance of
employees improve after process of performance.

7. Is the top level management biased?
Yes 16 30.77
No 36 69.23
Total 52 100
Chart Title
Respondents In %
I
n
t
e
r
p 69.23
r
e
t 30.77
a 36
t 16
i
Yes No
o
Interpretation:
Hence in BEML after performance appraisal the employees say that the top level
management is not partial.

8. Do you think performance appraisal helps to change employees behaviour?

Yes 40 76.92
No 12 23.08
Total 52 100
Change behavior
I Respondents In %
n
t
e
r
p
r 76.92
e
t
a
t 40 23.08
i 12
o
Yes No
n
Interpretation:
Hence in BEML after performance appraisal the employees says that it change the
behavior of the employee.

9. What is the main purpose of performance appraisal in BEML?
Retention of the employees 8 15.38
Recruitment system 0 0
Organization culture 16 30.77
Motivation 28 53.85
Total 52 100
Respondents
Retention of the employees Recruitment system Organization culture Motivation
15% 0%
54%
31%
Interpretation:
In the above diagram it states that the performance appraisal where the company used
for retention of the employees, organizational culture, motivation. Were the
respondents in the company gives their view that 15% says it is for retention of the
employee, and non agree with recruitment system, 30% says it’s an organizational
culture, and the majority says that it is mainly for motivation. So the employee in
BEML feels that performance appraisal is motivation to the employee.

10. What percent of improvement is there in your performance after appraisal is done?
10-20 10 19.23
20-30 12 23.08
30-above 30 57.69
Total 52 100
Oct-20 20-30 30-above
19%
58% 23%
Interpretation:
In the above diagram it is showing that the performance appraisal is an tool to

improve the performance of the employee were 19% says only10-20 improvement
shown in their performance and 23% of the respondent says that about 20-30% of
their performance is increased but the majority of the respondents said i.e. 58% says
their performance is highly improved .
The BEML employee felt it is more effective from the organization.

11. Your work is satisfying and worthwhile and helps contribute to the success of the
company?
Strongly agree 10 19.23

Agree 40 76.92
Neither agree nor disagree 2 3.85
Disagree 0 0
Strongly disagree 0 0
Total 52 100
Strongly agree Agree Neither agree nor disagree Disagree
0%
4%
19%
I
n
t
e
r
77%
p
r
e
t
Interpretation:
In the above diagram it is signifying that work is satisfying and worthwhile and helps
contribute to the success of the company, where 19% of the respondents are strongly
agree that compensation linked with performance of the company and 77% were the
majority of the respondents agree with it. On the other hand were 4% of the
respondents are neutral and a very less respondent’s i.e., 0% disagree with it.
Hence the majority of the respondents agree that work is satisfying and worthwhile
and helps contribute to the success of the company, which is clearly agreed by BEML
employees.

12. Are the goals clearly communicated to the employees?
Strongly agree 0 0
Agree 46 88.46
Disagree 2 3.85
Total 52 100
Goals
I
n
t 0%
e 4%
8%
r
p
r
e
t
a 88%
t
i
o
n
Interpretation:
In the above diagram it is signifying that compensation linked with performance of the
company, where 3.85% of the respondents are strongly agree that compensation linked with
performance of the company and 50% were the majority of the respondents agree with it. On
the other hand were 34.62% of the respondents are neutral and a very less respondents i.e,
11.53% disagree with it.
Hence the majority of the respondents agree that compensation linked with performance of
the company, which is clearly agreed by BEML employee

13. Do you have any annual set of performance targets?
Agree 42 80.77

Disagree 2 3.85
Total 52 100
performance standards
I
n
4%
t
e 8% 7%
r
p
r 81%
e
t
a
t
i
o
Interpretation:
In the above diagram it is signifying that annual set of performance standards of the
company, where 7% of the respondents are strongly agree that compensation linked
with performance of the company and 81% were the majority of the respondents
agree with it. On the other hand were 8% of the respondents are neutral and a very
less respondent’s i.e., 4% disagree with it.
Hence the majority of the respondents agree that annual set of performance standards
of the company, which is clearly agreed by BEML employee

14. How frequently the performance appraisal form filled/done?
Monthly 0 0
Half yearly 16 30.77
Annually 30 57.70
Not fixed 6 11.53
Total 52 100
Half yearly Annually Not fixed
I
n
11%
t
31%
e
r
p
r
e
t 58%
a
t
i
o
n
Interpretation:
In the above chart it is showing that the performance appraisal is done in BEML in the
time frame were 31% of the respondents says that it is done half yearly and 11% says it is not
fixed but in majority the respondents responded towards annually its 58% were the majority
of the respondents agree that the performance appraisal is done on annual basis.

15. In which criteria is the performance appraisal is done?
Merit cum seniority 18 34.62
Seniority cum merit 12 23.07

Merit only 18 34.62
Seniority only 4 7.69
Total 52 100
Respondents In %
Seniority only 4 7.69
I
n Merit only 18 34.62
t
e
rSeniority cum merit 12 23.07
p
r
eMerit cum seniority 18 34.62
t
a
Interpretation:
In the above diagram it is the performance appraisal is done on many bases but in
BEML it is done on seniority basis 7.69% agree with it and 34.62% were agree with
only merit. And on the other hand 23.07% respondents with seniority cum merit and
34.62% responded towards merit cum seniority.
So in BEML the respondent view is that merit gives priority to seniority.

16. Which method of performance appraisal is adopted in the BEML?
Grading 40 76.93
Essay method 4 7.69
Ranking 0 0
360 degree 8 15.38
Total 52 100
Respondents
Grading Essay method Ranking 360 degree
I
n
t 0% 15%
e
8%
r
p
r
e 77%
t
a
t
i
Interpretation:
In the above chart which shows that the method which is used in the company where
the majority of the respondents I.e. 77% of it were says that the company follow the
grading method which is given more priority where the employees agree with it and a
very minimum of the respondents agree with essay method, ranking method, and 360
degree which is 8%, 0%, 15% respectively. Where non agree with essay method. But
the majority of the respondents in BEML agree with grading method in the
organization.

17. In your opinion is compensation linked with performance?
Agree 26 50
Disagree 6 11.53
Total 52 100
Chart Title
Respondents In %
I
n
t Disagree 6 11.53
e
r
p Neither agree nor disagree 18 34.62
r
e
Agree 26 50
t
a
t Strongly agree 23.85
i
I
Interpretation:
In the above diagram it is signifying that compensation linked with
performance of the company, where 3.85% of the respondents are strongly agree that
compensation linked with performance of the company and 50% were the majority of
the respondents agree with it. On the other hand were 34.62% of the respondents are
neutral and a very less respondents i.e., 11.53% disagree with it.
Hence the majority of the respondents agree that compensation linked with
performance of the company, which is clearly agreed by BEML employee

18. Do you feel that the promotional policy is well defined in BEML?
Agree 32 61.54
Disagree 2 3.85
Total 52 100
Chart Title
Respondents In %
I
n
t 61.54
e
r
p
r 19.23
15.38 32
e
8 10 3.85
t 2
a Strongly agree Agree Neither agree nor Disagree
disagree
t
Interpretation:
In the above diagram it is signifying that the promotional policy of the company,
where 15.38% of the respondents are strongly agree that performance appraisal is a
promotional policy of the company and 61.54% were the majority of the respondents
agree with it. On the other hand were 19.23% of the respondents are neutral and a
very less respondents i.e., 3.85% disagree with it.
Hence the majority of the respondents agree that performance appraisal is a
promotional policy which is clearly agreed by BEML employee.

19. Is the promotional policy linked with the performance appraisal system?
Agree 32 61.54
Disagree 10 19.24
Total 52 100
Respondents
I
n
t
e 8%
19%
r
p
11%
r
e
t 62%
a
t
i
o
n
Interpretation:
In the above diagram it is signifying that the promotional policy is linked with
performance appraisal of the company, where 8% of the respondents are strongly
agree that performance appraisal is a promotional policy of the company and 62%
were the majority of the respondents agree with it. On the other hand were 11% of the
respondents are neutral and a very less respondents i.e., 19% disagree with it.
Hence the majority of the respondents agree that performance appraisal is linked with
promotional policy which is clearly agreed by BEML employee

20. In your view does performance management system of the company identifies the
training needs?
Agree 30 57.70
Disagree 8 15.38
Total 52 100
Chart Title
Respondents In %
I
n
t
e
r
57.7
p
r
e
t 30 15.38 15.38
11.54
a 6 8 8
t
i Strongly agree Agree Neither agree nor Disagree
disagree
Interpretation:
In the above diagram it is signifying that the promotional policy of the company,
where 15.38% of the respondents are strongly agree that performance appraisal is a
promotional policy of the company and 61.54% were the majority of the respondents
agree with it. On the other hand were 19.23% of the respondents are neutral and a
very less respondents i.e, 3.85% disagree with it.
Hence the majority of the respondents agree that performance appraisal is a
promotional policy which is clearly agreed by BEML employees.

21. In your view does the organization provide counseling after appraisal?
Always 2 3.85
Often 20 38.47
Rarely 8 15.38
Never 16 30.77
Can’t say 6 11.53
Total 52 100
Respondents
Always Often Rarely Never
I
n
t 4%
e 35%
r
p 44%
r
e
t 17%
a
t
i
o
Interpretation:
From the analysis it can be interpreted that 44% of the employees at that often
organization provide counseling after the appraisal is made,35% of them say that it
will be always,17% of them say it is rarely ands 4% of the employees say it is been
never.

22. Does your top management recognize your performance?
Agree 34 65.39

Disagree 2 3.85
Total 52 100
Chart Title
Respondents In %
I
n
t Disagree 23.85
e
r
p Neither agree nor disagree 8 15.38
r
e
Agree 34 65.39
t
a
t Strongly agree 8 15.38
i
o
Interpretation:
From the an analysis that it can be interpreted that 65.39% of the employees agree that
the supervisor recognizes the performance of the employees in the
organisation.15.38% of them strongly the statement.15.38% of the employees neither
agree nor disagree the statement and 3.85% of the employees disagree that supervisor
recognizes the work of the employees.

23. Do you think that your immediate superior deals with all employees fairly?
Agree 36 69.24
Disagree 4 7.69
Total 52 100
Respondents
I
n
t 8% 8%
e 15%
r
p
r
e
t 69%
a
t
i
o
Interpretation:
From the above analysis it can interpreted that 69% of the employees agree the
superior deals fairly with all the employees in the organisation,15% of them neither
agree nor disagree the statement,8% of them strongly the statement and 8% of the
employees not agree the statement.

24. Are you happy with the opportunities of the growth in BEML?
Completely satisfied 6 11.54
Satisfied 38 73.08
Dissatisfied 4 7.69
Neither satisfied nor 4 7.69

dissatisfied
Strongly dissatisfied 0 0
Total 52 100
Chart Title
Respondents In %
I
n
t
e
r
p 73.08
r
e
t
38
a 11.54 7.69 7.69
6 4 4
t
i Completely Satisfied Dissatisfied Neither satisfied
satisfied nor dissatisfied
o
Interpretation:
From the above analysis it can be interpreted that 73.08% of the employees are
satisfies that there is growth in the companies.11.54 are completely satisfied,7.69% of
them dissatisfies and 7.69% of them are neither satisfies nor dissatisfied

25. What kind of remedial measures are taken for betterment of the employee, after
performance appraisal is completed.
Job rotation 20 38.47
Sent to training 24 46.15

programmes
Counseled 8 15.38
Total 52 100
Chart Title
Respondents In %
46.15
38.47
15.38
20 24
8
Job rotation Sent to training counselled
programmes
Interpretation:
From the above analysis it can interpreted that 46% of the employees have found that they
should sent to the training programmes,38.47% of them found they should be processed for
job rotation programme and 15.38% them are to be counselled.

26. Do the company retain salary level that compare well to other companies in this
line?
Agree 28 53.85
Disagree 14 26.92
Total 52 100
Respondents
I
n
t 4%
e 27%
r
p
r 54%
15%
e
t
a
t
i
o
Interpretation:
From the above analysis it can be interpreted that 54% of the employees agree that the
salary level is compared well to other companies,27% of the employees disagree the
statement,15% of the employees neither agree nor disagree and 4% of them strongly
agree the statement.

27. How would you rate the transparency of performance appraisal system in BEML?
Outstanding 2 3.85
Very good 6 11.54

Good 26 50
Satisfactory 8 15.38
Poor 10 19.23
Total 52 100
Chart Title
Respondents In %
50
26
15.38
11.54
8
6
2 3.85
Outstanding Very good Good Satisfactory
Interpretation:
From the above analysis it can interpreted that 50% of the respondents are the
good,15.38% of the respondents are satisfactory,11.54% of the respondents are very good
and the good,15.38% of the respondents are satisfactory,11.54% of the respondents are
very good and 3.85 are the outstanding.

Chapter 5

Findings:
54% of the employees felt that performance appraisal is a process of evaluating the
performance of the employees.
53.85% disagree that the increment in the salary after performance appraisal.
61.54% performance appraisal help to provide an atmosphere where all are encouraged to
share one another burden.
50.7% agree that performance appraisal the employees say that performance appraisal helps
people set and achieve meaningful objective,
80.77% of the employees say that performance appraisal give constructive criticism in a
friendly and positive manner.
80.62% the employees say that performance of employees improve after process of
performance.
69.23% of the employees feels that the top level management is partial.
76.92% of the employees says that it change the behaviour of the employee.
58% agree that their performance is highly improved & felt it is more effective for the
organization.
77% says that performance appraisal is worthwhile and helps contribute to the success of the
company
50% agree that compensation linked with performance of the company.
81% agree that annual set of performance standards of the company.
58% were the majority of the respondents agree that the performance appraisal is done on
annual basis.
34.62% of the employees agree that merit gives priority to seniority.
77% of it were says that the company follow the grading method in the organization.
50% were the majority of the respondents agrees that compensation linked with performance
of the company.
61.54% were the majority of the respondents agree that performance appraisal is a
promotional policy.
62% were the majority of the respondents agree that performance appraisal is linked with
promotional policy.

44% of the employees at that often organisation provide counselling after the appraisal is
made.
65.39% of the employees agree that the supervisor recognises the performance of the
employees in the organisation.
69% of the employees agree the superior deals fairly with all the employees in the
organisation.
73.08% of the employees are satisfies that there is growth in the companies.
46% of the employees have found that they should sent to the training programmes.
54% of the employees agree that the salary level is compared well to other companies.
50% of the respondents are the good,---------------------------
Conclusion:
From the study conducted in BEML, it is clear that the appraisal process of BEML is quite
effective. It helps in deciding the reward system, helps in personal and professional
development and also deciding training and development programmes. The main aim of any
appraisal system is to help in the fulfilment of the organizational goals. The factors and
attributes on which the employees are evaluated i.e. the appraisal form cover all the required
areas on which employees need to be evaluated. Human beings are the most important assets
of every organization. Thus their perception and satisfaction is very important. From the
study it is also clear that the employees are satisfied with the appraisal process as well as the
criteria.

Suggestion:
Organization can conduct a seminar on performance appraisal so that the employees will be
aware of it.
An appraiser should take an initiative to help employees during performance appraisal.
The appraisal should not be biased.
Recommendation:
Most of the employees strongly feel that the appraisal process is highly biased. Measures
should be taken to ensure that employees are treated fairly. Employees are the most important
asset of every organization. Thus their satisfaction is very important.
Self appraisal should be introduced in the organization
Employees should also be allowed to evaluate their supervisor’s performance.
360 degree feedback method can be adopted by the company, to cover the above two points.
Measures should also be taken to ensure that the results are fair. A separate committee should
be appointed to look the matters concerning the appraisal process. They should ensure that
appropriate action is taken based on he results of the appraisal process.
The main shortcoming that we came across was that feedback is not given to employees.
Feedback is given to the employees when their performance is below average. Feedback
should be given when their performance is well, to appreciate and motivate them to continue
performing well.
Not only the monetary rewards but also appreciation and encouragement should be given to
best performers.
Another challenge faced by the company is that there is no transparency. There should be
more transparency, employees should be aware of the criteria of on which they are appraised,
the methods followed , actions that would be taken etc.
Proper training and development programmes should be selected to help the employees who
are not up to the mark and also for other employees to improve their performance.

Annexure:
A study on performance appraisal system at BEML
Questionnaire
Name:
sex
age
qualification
designation
year of service
1. What is performance appraisal in your views?

Evaluation of the employees [] Promotion of employees []
Job satisfaction [] Motivation []
2. Do you receive any hike in your pay after performance appraisal?

Yes [] No []
3. Do you think performance appraisal help to provide an atmosphere where all are
encouraged to share one another burden?
Yes [] No []
4. Do you think performance appraisal helps people set and achieve meaningful goals?
Yes [] No []
5. Do you think performance appraisal give constructive criticism in a friendly and positive
manner?
Yes [] No []
6. Do you think that after the process of performance appraisal employees improved their
performance?
Yes [] No []
7. Is the top level management biased? Yes

[] No []
8. Do you think performance appraisal helps to change employees behaviour?

Yes [] No []
9. What is the main purpose of performance appraisal in BEML?

Retention of the employees [] Recruitment system []
Organization culture [] Motivation []

10. What percent of improvement is there in your performance after appraisal is done?
10-20 [] 20-30 [] 30-above []
11. Your work is satisfying and worthwhile and helps contribute to the success of the
company?
Strongly agree [] Agree [] Neither agree nor disagree []
Disagree Strongly [] Disagree []
12. Are the goals clearly communicated to the employees?

13. Do you have any annual set of performance targets?

14. How frequently the performance appraisal form filled/done?

Monthly [] Half yearly [] Annually [] Not fixed []
15. In which criteria is the performance appraisal is done?

Merit cum seniority [] Seniority cum merit []
Merit only [] Seniority only []
16. Which method of performance appraisal is adopted in the BEML?

Grading [] Essay method [] Ranking ( ) 360 degree []
17. In your opinion is compensation linked with performance?

18. Do you feel that the promotional policy is well defined in BEML?
19. Is the promotional policy linked with the performance appraisal system?
20. In your view does performance management system of the company identifies the
training needs?
21. In your view does the organization provide counselling after appraisal?
Always [] Often [] Rarely [] Never [] Can’t say []

22. Does your top management recognize your performance?

23. Do you think that your immediate superior deals with all employees fairly?
Bibliography:
Books:
Human resource management: text & cases 7th edition, 2013, by Aswathappa, published by
Mcgraw Hill
Human resource management: by, Robert Dransfield, Heinemann (july 2000)
Human resource management, by Durai

Performance appraisal and management, by Tapomoy Deb
Research methods in human resource management, by Valerie Anderson
Websites

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A study on Performance Appraisal

Ballari institution of technology and management Page 1

Introduction about the Internship:

This is an internship report. Master of Business Administration (MBA) course requires a 10

Ballari institution of technology and management Page 2

Need of metro rails:

Ballari institution of technology and management Page 3

Operational metro system in India

Urban Extended Operational Under

Delhi 17,315,846 22,753,486 193.03kms 49.06kms 143.97kms

Mumbai 20,424,388 21,748,395 12.40kms - 12.40kms

Kolkata 16,112,637 15,617,882 26.66kms 18.00kms 9.55kms

Bangalore 9,699,499 9,728,907 17.07kms - 17.60kms

Gurgaon 976,824 (NCR) 6.10kms - 6.10kms

Ballari institution of technology and management Page 4

State Planned Underground Elevated Completed

Delhi(phase III) 150.00kms 56.00kms 86.00kms 2016

Mumbai(phase II) 42.20kms - 42.20kms Planning

Bangalore(phase II) 27.70kms 9.99kms 17.82kms 2015

Gurgaon (phase II) 8.40kms - 8.40kms 2016

Kolkata Expansion 19.65kms 10.12kms 10.53kms 2015

Sources of Funding in India’s metro rail sector

State givernment sub Private Participants Viability Gap

Ballari institution of technology and management Page 5

Foreign Funding in India’s metro rail sector

Inflow of funds from

Japan 629500 7.1763 87.78%

France 78730 0.897522 10.98%

Canada 6063.2 0.06912048 0.85%

Britain 2870 0.032718 0.40%

Grand Total 717163.2 8.176

Ballari institution of technology and management Page 6

Ballari institution of technology and management Page 7

Rail and metro business:

Ballari institution of technology and management Page 8

BEML limited (formerly known as Bharat Earth Movers Limited) as a full-fledged

Ballari institution of technology and management Page 9

 Hydraulic press 100 T for Bush pressing

Ballari institution of technology and management Page 10

 Water leak test facility for Metro cars

Chairman and Managing Director D K Hota

Nominee (government) Sanjay Prasad

Independent director B P Rao

Independent director Sudhir kumar Beri

Director Defense R H Murlidhara

Nominee (government) Surina Rajan

Company secretary S V Ravishikar Rao

Director(mining&constraction business) B R Viswanatha

Director (finance) Shri. Pradeep Swaminathan

Director (Rail & metro enterprise) Shri. Aniruddh Kumar

Ballari institution of technology and management Page 11

Improve competitiveness through organizational transformation and collaboration/strategic

Grow profitable by aggressive pursuing opportunities in national and international markets.

Ballari institution of technology and management Page 12

Rail & Metro

 Stainless steel metro cars

 Boat with BEML engine and gear box .

Ballari institution of technology and management Page 13

Mining and construction

Rail and metro

Trading divisions for dealing in non-company products .

International business division for export activities .