STUDY ON IMPLEMENTATION OF BELL CURVE APPROACH IN PERFORMANCE APPRAISAL SYSTEM OF

NATIONAL AVIATION COMPANY OF INDIA LTD., ER, KOLKATA

A project report submitted in partial fulfillment of the award of the degree of Master of Business Administration By

PRIYANKA SINGH
MBA (2008-2010) Registration No 081480710033 Roll No-08148009040

STUDENT DETAILS

Name Course Session Roll No Regn. No Specialization

: Priyanka Singh : Masters in Business Administration : 2008-2010 : 08148009040 : 081480710033 :

Major: Human Resource Minor: Marketing : Future Institute of Engineering and Management : West Bengal University of Technology : Mr. A. Jagdish Kumar and Asst. Manager (Personnel) NACIL, ER : Prof. Monalisa Dey

Institute University Industry Guide

Mr. G.P. Gupta Deputy Manager (O.L.) NACIL, ER Project guide

DECLARATION

I hereby declare that this project titled Study on implementation of Bell Curve Approach in Performance Appraisal system of NACIL, ER, Kolkata in partial fulfillment of the requirement for the award of degree of Master of Business Administration, West Bengal University of Technology, is carried out by me during the summer of 2009 and is my original and true work for academic purpose only.

(Priyanka Singh) Place: Kolkata Date:

Attach Completion Certificate

ACKNOWLEDGEMENT

It is my privilege to extend my heartfelt thanks to the Personnel Department of NACIL, ER, Kolkata for having generously agreed to accept me as a summer intern, providing me a solid platform to educate myself in the field of Human Resource. It was a matter of great pleasure to work in such a company which is our national pride. I would like to express my acknowledgement to Mr. S. N. Bhattacharya; General Manager (Personnel) NACIL, ER, Kolkata, for allowing me to undergo this internship in this esteemed organization. I am thankful to Mr. G.P. Gupta, Deputy Manager (O.L.) for his moral support and advices. I do express my sincere gratitude to Mr. A. Jagdish Kumar, Asst. Manager (Personnel), whose help, guidance and cooperation were instrumental in accomplishing and giving a final shape to this project. I am grateful to Prof. Monalisa Dey, Future Institute of Engineering and Management for her kind cooperation and support. Lastly, I would like to thank my parents for their blessings.

Priyanka Singh

EXECUTIVE SUMMARY Performance appraisal is a structured formal interaction between a subordinate and the supervisor, that usually takes the form of a periodic interview (annual or semi- annual), in which the work performance of the subordinate is examined and discussed, with a view to identifying the weaknesses and strengths as well as opportunities for improvement and skill development. It is one of the most important functions and a useful management tool in an organization managed and monitored by the Human Resource Management executives of the organization. The Indian Aviation sector is highly service oriented and the employees of any aviation company have to always deal with the customer satisfaction level in the competitive aviation scenario. Thus, it becomes very important for the employees to judge the performance level of the employees so that they are rewarded as per the performance and hence the employees are motivated to perform in a better way and achieve excellence thereby enhancing the customer satisfaction level and also the brand image of the company. In this contemporary changing global environment and recession driven economy where perform or perish has become the mantra of the management and hence posing a great challenge for HR executives to impose a threat on the employees, thereby forcing them to pull up their socks and perform to overall development of the company. The aviation industry worldwide has been passing through turbulent times due to global economic recession. Air India too is passing through a critical financial phase. The major portion of the expenses is due to salary/manpower cost of employees of Air India .Therefore as a part of the turn around policy of the company the management wishes to experiment the implementation of Bell Curve Method for disbursement of Performance Based Incentive Scheme which every individual in every grade and category gets on the basis of total product of company irrespective of his individual contribution towards the productivity of the company. Hence, a study on the implementation of the Bell Curve Method has been done in this project. Also,

various statistical tests have been done to correlate performance of the employees with variables like education, work experience, etc.
CONTENTS Section 1 1.1 1.2 1.3 1.4 1.5 2 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 3 3.1 3.2 3.3 3.4 3.5 Topic Introduction Introduction of the topic Objectives of the study Methodology adopted Scope of the study Limitations of the study About NACIL Organization Profile Mission Fleet Air India in current scenario Air India Restructuring Air India Fleet expansion National Carrier Image SWOT analysis of Air India Network of NACIL Constraints faced by Eastern Region NACIL: Racing Ahead NACIL: Organization Structure Employee Profile Manpower Deployment in Eastern Region The Personnel Department Functions of Personnel Department Literature Review Performance Appraisal: Meaning & Definition Approaches to Performance Appraisal Objective of Performance Appraisal Purpose of Performance Appraisal PA & Competitive Advantage 27 28 29 29 31 5 7 8 10 11 13 14 15 16 18 19 22 23 23 24 1 2 2 2 3 Page Nos.

3.6 3.7 3.8 3.9 3.10 4 4.1 4.2 5 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 6 6.1 6.1.1 6.1.2 6.2 6.3 6.3.1 6.3.2 7 7.1 8 9 10 11

Methods of Performance Appraisal Process of Performance Appraisal Pitfalls of Performance Appraisal PA : A part of Career Development Bell Curve for Performance Appraisal Performance appraisal evaluation system in NACIL Evaluation procedure of appraisal for staff cadre Evaluation procedure of appraisal for officer cadre Research Methodology Research Design Type of Data Collected Sampling Technique Sampling Unit Universe Sample Size Tools for Presentation Tools for Analysis Period of Study Data Analysis and Interpretation Bell Curve Analysis Bell Curve Analysis of Officers (Department wise) Bell Curve Analysis of Officers (Attribute wise) Chi- Square Test Correlation Scatter Diagram Correlation Coefficient Findings & Suggestions Performance Dashboard Recommendations Limitations of the Study Future Scope of the Study Bibliography and Web Resource Appendix

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