A PROJECT REPORT ON PERFORMANCE APPRAISAL IN DURGAPUR PROJECT LIMITED

UNDER THE GUIDENCE OF S. MAITY (ASST. MANAGERTRAINING)

[Pick the date]

SUBMITTED BY: MADHU LAXMI MANGAL & SANHITA BHOWMICK

SCHOOL OF MANAGEMENT SCIENCES (BENGAL ENGINEERING AND SCIENCE UNIVERSITY, SHIBPUR)

ACKNOWLEDGMENT
WE owe a great many thanks to a great many people who helped and supported us in this project work. Our deepest thanks to the Guide of the project Mr. S. MAITY (ASST. MANAGER-TRAINING) for guiding and correcting various documents of our with attention and care. He have taken pain to go through the project and make necessary correction as and when needed.

We express our thanks to the Professor and Principal Mrs. Monalika Dey(professor) And Prof.S. R. BHADRA CHOUDHURY (Director), School Of Management Sciences, Bengal Engineering and Science University for extending his support.

We would also thank our Institution and our faculty members without whom this project would have been a distant reality. We also extend our heartfelt thanks to our family and well wishers.

SANHITA BHOWMICK MADHU LAXMI MANGAL

DECLARATION

As a part of the curriculum and being a student of Master of Business Administration (2010-2012) of SCHOOL OF MANAGEMENT SCIENCES, I, MADHU LAXMI MANGAL, and I, SANHITA BHOWMICK hereby declare that the report prepared for the company DURGAPUR PROJECTS LTD.are true to the best of our knowledge and is the original work conducted by us.The recommendations and suggestions are only applicable to the company concerned and the institute for academic purpose. We also declare that the information and data given in the report is authentic to the best of our knowledge. Any damage or loss caused to whomsoever using the report for their purpose without our permission is not liable for any compensation by us.

Date: (MADHU LAXMI MANGAL & SANHITA BHOWMICK)

CERTIFICATE FROM THE FACULTY GUIDE TO WHOM IT MAY CONCERN

This is to certify that the project work entitled PERFORMANCE APPRAISAL is done by SANHITA BHOWMICK AND MADHU LAXMI MANGAL, Registration no: 265110012 & 265110052, a student of SCHOOL OF MANAGEMENT SCIENCES, under my guidance and supervision for the partial fulfillment of the requirement of MBA Program of SCHOOL OF MANAGEMENT SCIENCES.

To the best of my knowledge and belief the report embodies the work of the candidate herself and has been duly completed. Simultaneously, the report fulfills the requirements of the rules and regulations related to the summer internship of the company and I am assured that the project is up to the standard both in respect to the contents and language.

Prof Mrs. Monalika Dey Date: Human resource Faculty Guide School of Management Sciences

TO WHOM IT MAY CONCERN

This is to certify that MADHU LAXMI MANGAL AND SANHITA BHOWMICK being student of M.B.A of Bengal Engineering and Science University is preparing summer internship project on PERFORMANCE APPRAISAL in DURGAPUR PROJECTS LTD. under my super vision & guidance.

We wish her all success for her future career.

(NAME OF HRD) AUTHORISED SIGNATORY Date HRD MANAGER

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INDEX
TOPICS 1. EXECUTIVE SUMMARY 2. INTRODUCTION 3. COMPANY PROFILE 4. ORGANIZATION CHART 5. MANPOWER STRENGTH 6. OBJECTIVE OF THE STUDY 7. INTRODUCTION OF PERFORMANCE APPRAISAL AIM OF PERFORMANCE APPRAISAL PURPOSE OF PERFORMANCE APPRAISAL BENEFITS OF PERFORMANCE APPRAISAL APPRAISAL AND WHOLE PERSON DEVELOPMENT DIAGRAMATIC REPRESENTATION OF THE EVALUTION PROCESS DIAGRAMATIC REPRESENTATION OF THE TECHNIQUES OF PERFORMANCE APPRAISAL TRADITIONAL APPROACH MODERN APPROACH 8. LIMITATION OF PERFORMANCE APPRAISAL SYSTEM 9. ETHICS IN PERFORMANCE APPRAISAL 10.POWER POLITICS AND APPRAISAL 11.EXISTING APPRAISAL SYSTEM IN DPL 12.RESEARCH METHODOLOGY FLOW CHART METHODOLOGY RESEARCH DESIGN DATA COLLECTION METHOD 13.QUESTIONNAIRE 14.ANALYSIS GRAPHICAL REPRESENTATION OF QUESTIONNAIRE 15.LIMITATION 16.CONCLUSION AND LIMITATION 17.BIBLOGRAPHY PAGES 8 9 10 17 18 19 20 20 21 21 23 24 26 27 28 31 33 34 35 39 40 41 42 43 45 48 49 61 62 64
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EXECUTIVE SUMMARY
Primary Objective: to find out the performance appraisal system in
Durgapur Project Limited (DPL).

Secondary Objective: - to recognize and identify performance

shortcomings and accordingly prepare developmental plans.

Research Methodology:1. 2. 3. 4. 5. Data collection Questionnaire Analysis of performance appraisal format Observation Discussion with the HODs of the concerned departments.

Coverage:1. Administrative department 2. Coke oven 3. Power plant

INTRODUCTION
Managing employee performance is an integral part of the work that all managers and rating officials perform throughout the year. It is as important as managing financial resources and program outcomes because employee performance or the lack thereof, has a profound effect on both the financial and program components of any organization. To accomplish the objectives, managers need to identify organizational goals to be accomplished, communicate individual and organizational goals to employees that support the overall strategic mission and Government Performance and Results Act (GPRA) goals of the Department, monitor and evaluate employee performance, and use performance as a basis for appropriate personnel actions, including rewarding noteworthy performance and taking action to improve less than successful performance. The Office of Personnel Management defines performance management as the systematic process of: Planning work and setting expectations. Continually monitoring performance. Developing the capacity to perform. Periodically rating performance in a summary fashion; and Rewarding Good Performance.

Objectives of Performance Appraisal According to: Aims at: Employee Organization:

measuring the efficiency Maintaining organizational control. concrete and tangible particulars about their work assessment of performance Mutual goals of the employees & the organization. growth & development
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COMPANY PROFILE

DURGAPUR PROJECTS LTD.

(A Government of West Bengal Undertaking)

Regd. Office, Head Office and Works Administrative Building Durgapur - 713201 Fax (0343) - 282-3492 E-Mail : dpmi@dte.vsnl.net.in

Calcutta Office 1,Shakespeare Sarani (Ist Floor) Calcutta - 700 001 Fax (033) - 282 - 3492 E-Mail : dplcal@cal.vsnl.net.in

Formation :
The Durgapur Projects Limited is a Government Company incorporated on 6th September, 1961, consisting of Coke Oven Batteries, Bye-products Plant, Gas Grid Project, Thermal Power Plant and Water Works. It is under the administrative control of the Department of Power, Government of West Bengal. Durgapur today assumes a significant position in the industrial map of West Bengal. It has a whole gamut of the manufacturing units- from steel to power and from cement to mining machinery. In the growth and expansion of this industrial base. Durgapur Projects Ltd. The multi-utility company, wholly owned by the West Bengal Government, has been playing a pivotal role since early 60s. DPL set-up in 1961 is primarily a power utility organization but it has already made a mark in the market also as manufacturer of world standard coke for various metallurgical applications. It also produces coke oven gas, which is being supplied to the neighbouring district of Kolkata. It produces another by-product namely, crude coal tar. Its rich human resources of 450 highly skilled engineers and professionals besides 5000 trained work force.

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Company Is In The Business Of:

1. Power Generation 2. Power Transmission & Distribution. 3. Production of low & medium ash Metallurgical coke for various applications. 4. Production of coal by-products such as crude coal tar & coke oven gas for downstream application. 5. Water works for in-house requirements as well as for other local industries & domestic areas.

Location :
The Companys Plants and Administrative Offices are located within 3 km from Durgapur Railway Station and 1 km from the G. T. Road.

Business :
The Durgapur Projects Limited is the first undertaking of the State Government which has been engaged in development of infrastructure for Industries and was given the stature of an Industry for Industries. It has helped in development of various large, medium and small scale industries in and around Durgapur and also at other places within the State.

Activities :
1. Generation of power and its distribution at 11KV in its licensed area at Durgapur and transmission of surplus power to WBSEB. 2. Production of Metallurgical Coke of Blast Furnace, Foundries etc., Coke Oven Gas as industrial fuel and Crude Coal Tar available from its Recovery type of Coke Oven Batteries. 3. Treatment and distribution of water for drinking and industrial use. Infrastructure : Land Railway Network 1910 acres comprising 1060 acres for Plant and 850 acres for Township. Separate Railway Exchange Yard (DCOP Siding) with Railway maintained Weighbridge facility.

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Power Plant :
The Company is generating power from its six power units with an aggregate capacity of 395 M.W and distributing to its consumers of various categories located in its command area at Durgapur and the surplus power is transmitted through the West Bengal State Electricity Board Grid. The Company ensures steady and uninterrupted supply of power to its consumers. Unit No. I II III IV V VI Year of commissioning 10.8.60 10.6.60 23.6.64 29.6.64 4.7.66 1.1.87 Present Capacity 30 MW 30 MW 70 MW 70 MW 77 MW 110 MW Renovated Capacity 30 MW 30 MW 77 MW 77 MW 77 MW 110 MW

Coke Oven:
Initially there were four Coke Over Batteries with 29 ovens each, and they were commissioned during 1959, 1960, 1967 and 1972 respectively. Unfortunately they were all damaged during the 1978s flood. Consequently the first two batteries became non-operational and the third forth worked with much reduced capacity. This phase continued till late 1987. New batter no.5 with 40 ovens was installed in July 1987. The rebuilding of the battery no.1 & 2 with 30 ovens each has recently been completed. Battery no.2 was commissioned in June 1991 with the first publishing of coke immediately after and now is under production. Present production from battery no.2 with
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30 ovens & battery no.5 with 40 ovens is around 30,000 M.T. of coke per month.

Water Works:
Originally commissioned with a capacity of 6 MGD in 1960. The Water Works was expanded up to the capacity 41 MGD of water treatment plant for water available from Durgapur Barrage on River Damodar of DVC for use in Company's Plant, Township and other industries and domestic consumers. Among the total installed capacity of 41MGD is drinking water and 27MGD of industrial and processed water. The capacity of the Water Work was increased to 35 MGD in the year 1964-65.This capacity was further increased by additional 6 MGD in the year 1985-86 to meet the additional requirement of water of 110 MW sixth unit of the power plant. The water is available from Durgapur barrage on Damodar River. DPL treats 30 million gallons of water every day. Out of this the power plant alone consumes about 44% of the total production. The water works has mainly two types of consumer: 1. Industrial 2. Domestic The domestic consumer can be classified into two types: Bulk Consumers - where 24 hours water supply is provided. Individual Consumers- where water is supplied in three shifts, about 45 hrs. a day.

Coke oven group of plant:

Initially there were four Coke Oven Batteries with 29 ovens even, and they were commissioned during 1959, 1960, 1967 and 1972 respectively. Unfortunately, they two batteries become non operational, and the third and fourth worked with much reduced capacity. This phase continued till late 1987. New Battery No.5 with 40 ovens was installed in July, 1987. The rebuilding of battery No. 1 and 2 with 30 ovens each has recently been completed. Battery No. 2 was commissioned in june, 1991 with the first pushing of coke
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immediately after and now is under production. Present production from battery No.2 with 30 ovens and battery No. 5 with 40 ovens is around 30,000 M.T. of coke per month.

The coke oven battery no.1:

The company is now producing more than 74,50,000NM of clean gas and supplying to Alloy Steel Limited. Of the By-products, gas is main item.DPL is also supplying coke to Defence, Railways and to Foundries all over the country as well as to a number of industries. Presently, DPL is converting coal supplied by Bokaro Steel Plant to coke for consumption in their plant.

Coal washery:
The DPL Coal Washery with a capacity to wash 360 tons of raw coal per hour producing 220 tons of washed coal and 140 tons of sinks was commissioned in the year 1968. The washed coal was intended for the coke ovens and the sinks for the power plant. Since its very inception, the washery could not be compared to price of the direct feed coal. Over the years, with the gradual decreases in the reserve of coking coal in India, its high ash content has rendered much of what is supplied from collieries unusable in the coke ovens. It is obvious that in this situation there is no way other than resorting to maximum washing of prime coking coal to reduce its ash to an acceptable level for utilization in coke oven. The company in the meantime has entered into a M.O.U with M/S Birla Technical Service for establishment of a Steel Complex at Durgapur by a Company, jointly promoted by both DPL and BTS linked with renovation of DPLs Coal Washery. The renovated Coal Washery will provide the required washed coal to batteries for production of coke to be consumed by the proposed Steel Complex. M/S Mecon was appointed as a consultant to assess the techno economic feasibility of the project. The project was found to be viable by M/S Mecon and is in the process of finalisation and awaiting financial close.

Transmission & Distribution :

The transmission and distribution system of DPL with jurisdiction of an area of about 60 sq kilometers includes the following :14

a) 132 KV transmission line measuring 19 circuit kilometers served through three sub-stations of 180 MVA capacities. b) 11 KV transmission/distribution line measuring 393 circuit kilometers c) LT distribution line network measuring 4250.5 circuit kilometers.

Renovation, Modernization and Up gradation of Power Units :

The Units 1 to 5 Power Plant are being totally renovated and modernized with a project cost of Rs. 363 crores carried out by M/S Power plant Improvement Ltd (a joint venture of Siemens AG and BHEL) to be completed in plases by 31.3.3001. As a result the plant availability will be over 80% and PLF should increase up to 63.5% and there shall be availability of substantial power without interruption.

Special Incentive for new industries :

The power tariff of DPL includes attraction for new industries based on Load Factor, Power Factor, and Payment through L/C etc. Some new residential units have been set up in Durgapur and are availing such incentives.

Growth of power demand :

There has been inclusion of new industrial consumers with a contract demand of about 30 MVA which is expected to increase by another about 50 MVA in near future.

Environmental activities :
The waste water of Power Plant is treated in Ash Pond for sedimentation of pollutants whereas the coke oven waste water containing toxic chemicals is treated by root zone oxidation system and clear water meeting the prescribed standard is discharged. For air pollution control ESPs have been installed/being upgraded to maintain prescribed norms.

AWARDS :
DPL Power Station has been given incentive award for reduced specific secondary fuel consumption and auxiliary power consumption by the Ministry of Power, Government of India on two occasions.

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ORGANIZATIONAL CHART

Chairman

Managing Director

Board of directors

G. M. (F&A) -cum Co.Secy. Dy. G. M. (F&A)

G. M. (Power Plant)

G. M. (Projects)

Chief of COGP

Dy. G. M. (Project)

Dy. G. M. (COGP)

Dy. G. M. (Electricals)

Dy. G. M. (PP/ALDC)

Dy. G. M. (O&M)

Dy. G. M. (Stores &

Dy. G. M. (P&A)

Dy. G. M. (Corporate)

16 Dy. G. M.

(Civil)

MANPOWER STRENGTH AS IN NOVEMBER, 2011

OFFICERS SUPERVISOR WORKMAN

960 862

330 227 182 234

312 185 115 38 66 10 ETD 27 WW

279

72

COGP

DPPS

Common service

AREA WISE GRAPHICAL REPRESENTATION OF MANPOWER FIGURE

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OBJECTIVES OF THE STUDY:

To carry out the study of Performance Appraisal we frame the following objectives:a. Identify of the technique of Performance Appraisal followed in DPL. b. Employees attitudes towards the present Appraisal system. c. Review of the current Appraisal system in order to: I. Enhance productivity. II. Attain global standard. d. To provide suggestions and recommendation from the study conducted. e. Identify and enhance desirable or effective work behaviour. f. Reinforce this behaviour by linking rewards to measured performance. g. Significance of reward and incentives, promotions. h. Develop desired competencies and building human capital within organization. i. Evaluate the concept of performance and its importance in organization. j. Increase two-way communication between supervisors and employees. k. Performance management involves clarifying the job duties, defining performance standards, and documenting, evaluating and discussing performance with each employee. Following picture is the diagrammatic representation of performance management:determining majour job duties

hold performance diccussions

define performance standerds for each duty

evaluate job performance

document jobs performance

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Introduction to Performance appraisal

The history of Performance Appraisal is quite brief. Its roots in the early 20 th century. As a distinct and formal management procedure used in the evaluation of work performance, appraisal really dates from the time of the second world war-not more than 60 years ago. Performance Appraisal is a regular process (usually annual) where an employees performance for the year is assessed by manager or by the employee. Performance Appraisal is defined as the process of assessing the performances & 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 procedure used in the working organizations to evaluate personalities, contribution and potentials of employees. It is only one part of performance management approach. Generally, it means the same as performance review. There is says Dulewics (1989) a basic human tendency to make judgement about those one is working with as well as about oneself. The human tendency to judge can create serious motivation, ethical, and legal problems in the workplace. without a structured appraisal system, there is little chance to ensuring that the judgements made will be lawful, fair,bias free and accurate. Performance Appraisal System began as simple method of income justification. That is appraisal was used to decide whether or not the salary or wage of an individual employee was justified. The process was firmly linked to material outcomes. If an employees performance was found to be less than ideal, cut in pay would follow. On other hand, if his performance was better than the supervisor expected, a pay rise was in order.

AIM OF PERFORMANCE APPRAISAL

Generally, the aims of a performance appraisal are to:

Give employees feedback on performance Identify employee training needs Document criteria used to allocate organizational rewards

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Form a basis for personnel decisions: salary increases, promotions, disciplinary actions, bonuses, etc. Provide the opportunity for organizational diagnosis and development Facilitate communication between employee and employer Validate selection techniques and human resource policies to meet federal Equal Employment Opportunity requirements. To improve performance through counselling, coaching and development.

PURPOSE OF PERFORMANCE APPRAISAL

The purpose can be highlighted by way of the following chart:

General application
Development Uses:

Specific purpose
Identification of individual needs. Performance feedback. Determining transfers. Identification of individual strengths and developmental needs. Salary. Promotion. Retention of individual performance. Recognition of individual performance. Lay-offs. Identification of poor performers. HR planning. Determining organizational training needs. Evaluation of organizational goal achievement. Information for goal identification. Evaluation of HR systems. Reinforcement of organizational development needs.

Administrative uses:

Organizational maintenance / objectives

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BENEFITS OF PERFORMANCE APPRAISAL:

The benefits of performance appraisal are twofold. The employees develop Themselves while the organization gets the benefit of improved workforce. A few benefits are stated below: A. Benefits to the organization: Facilitates the achievement of organization goals and strategies. Contributes to improved staff morale. Facilitates continuous performance improvement, organization development and culture change. Assists in establishing a performance culture of quality, efficiency and achievement. Provides a formal means of discussing competency gaps and how to address these leading to more competent work force. Helps build a climate of openness and trust. Adds to a participative work culture. Forms part of the legal process in addressing persistent poor performance. Provides the basis for fair remuneration based on actual performance, so employees can see and experience a clear link between their performance and the rewards they receive. Also provides systematic judgments to back up transfers, demotions or terminations, in extreme cases. B. Benefits To Employees: An opportunity to get formal feedback from line managers on how their performance is viewed so that they can learn what they do well and what needs to improve. Ensures clarity regarding work expectations and standards, reducing anxiety / stress and conflict with line managers. An opportunity to discuss their job competencies (or lack thereof) leading to targeted training and development helping them to realize their full potential. Enhance productivity. Attain global standard.
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APPRAISAL AND WHOLE- PERSON DEVELOPMENT:There is increasingly a need for performance appraisals of staff and especially managers, directors and CEOs, to include accountabilities relating to corporate responsibilities, represented by various converging corporate responsibility concepts including: the Triple Bottom Line (profit people planet); corporate social responsibility (CSR); sustainability ; corporate integrity and ethics; fair trade, etc. the organization must decide the extent to which these accountabilities are reflected in job responsibilities, which would then naturally feature accordingly in performance appraisals. Significantly also, while this appraisal outline is necessarily a formal structure this does not mean that the development discussed with the appraise must be formal and constrained. In fact the opposite applies. appraisals must address whole person development- not just job skills or the skills required for the next promotion. Appraisals must not discriminate against anyone on the grounds of age, gender, sexual orientation, race, religion, disability, etc.

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DIAGRAMATICS

REPRESENTATION

OF

THE

EVALUATION PROCESS

establish performance standards

communicate standards and expectation

measure actual performance comparing with standards discuss result and decision making
Establish performance standards:-The first step in the process of Performance Appraisal is the setting up of the standards which will be used to as the base to compare the actual performance of the employees. This step requires setting the criteria to judges the performance of their contribution to the organizational goals and objectives. The standards set should be clear, easily understandable and in measurable terms.

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Communicate standards and expectation: - Once set, it is the responsibility of the management to communicate the standards to all the employees of the organization. The employees should be informed and the standards should be cleared explained to them. This will help them to understand their roles and to know what exactly is expected from them. The standards should also be communicated to the appraisers or the evaluators. Measure actual performance: - The most difficult part of the performance appraisal process is measuring the actual performance of the employees, that is, the work done by the employees during the specified time. It is a continuous process which involves monitoring the performance throughout the year. This stage requires careful selection of the appropriate techniques of measurement, the outcome of the process and providing assistance rather than in an employees work. Compare with standards: - The actual performance is compared with the and performance of the employees from the standards set. The result can show the actual performance being more than the desired performance or the actual performance being less than the desired performance depicting a negative deviation in the organizational performance. It includes recalling, evaluating and analysis of data related to the employees performance. Discuss results: The result of the appraisal is communicated and discussed with the employees on one to one basis. The focus of this discussion is on communication and listening. The result, the problems and the possible solution are discussed with aim of problem solving and reaching consensus. Decision making: The last step of the process is to take decisions which can be taken either to improve the performance of the employees, take the required corrective actions, or the related HR decisions like rewards, promotions, demotions, transfers etc.

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DIAGRAMATIC REPRESENTATION OF THE TECHNIQUES OF PERFORMANCE APPRAISAL

Performance appraisal techniques

traditional methods
Essay appraisal methods
Straight Ranking Methods Paird Comparison

modern methods
Managent By Objective (MBO)

360 Degree Appraisal

Assesment centre

Critical Incidents Methods field review

BARS

HR Accounting Method

Checklist Method

Grafical Rating Scale

Forced Distribution

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TRADITIONAL METHODS Essay appraisal methods: 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. Straight ranking methods: It is the oldest and simplest method of performance appraisal. In this method, the appraiser ranks the employees from the best to the poorest on the basis of their overall performance. It is quite useful for a comparative evaluation. Paired comparison: This technique is probably just as accurate as alternation ranking and might be more so. But with large numbers of employees it becomes extremely time consuming and cumbersome. Critical incident method: in this method, the evaluator rates the employee on the basis of critical events and how the employee behaved during those incidents. It includes both negative and positive points. The drawback of this method is that the supervisor has to note down the critical incidents and employee behaviour as and when they occur. 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. Checklist method: In this method, a checklist of statements on the traits of the employee and his or her job is prepared in two columns viz. a Yescolumn and a No column. All that the rater (immediate superior) should do is tick the Yes if the answer to the statement is positive and in the column No if the answer is negative. After ticking off against each item, the rater forwards the list to the HR department where the actual assessment of the employee takes place and the actual evaluation is done by the HR department. The HR department

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assigns certain points to each Yes ticked. Depending on the number of Yes the total score is arrived at. When points are allotted to the checklist it becomes weighted checklist.

Graphical rating method: 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.

Forced distribution: One of the errors in rating is leniency-clustering a

large number of employees around a high point on rating scale. The forced distribution method seeks to overcome the problem by compelling the rater to distribute the rates on all points on the rating scale. The method operates under assumption that the employees performance level conforms to a normal statistical distribution. Generally, it is assumed that employee performance level conforms to a bell shaped curve.

MODERN METHODS
Management by Objectives: MBO emphasizes participation by all organization members. The following core elements in MBO: Formation of trusting and open communication throughout the organization Mutual problem solving and negotiations in the establishment of objectives Creation of win-win relationships Organizational rewards and punishments based on job-related performance and achievement. Minimal uses of political games, forces and fear. Development of a positive, proactive, and challenging organizational climate. Following are the 6 steps in the MBO process: i. Formulate long range goals and strategic plans ii. Develop overall organizational objectives iii. Established derivative objectives for major operating units
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iv. Set realistic and challenging objectives and standards of performance for members of the organization. v. Formulate action plans for achieving the stated objectives vi. Implement the action plans and take corrective action when required to ensure the attainment of objectives. 360 Degree Appraisal: Where multiple raters are involved in evaluating performance, the technique is called 360o appraisal. The 360o technique is understood as systematic collection of performance data on an individual or group, derived from a number of stake holders- stakeholders being the immediate supervisors, team member, customers, peers, and self. In fact, anyone who has useful information on how an employee does the job may be one of the appraisers. It enables an employee to compare his or her perceptions about self with the perceptions of others. However, receiving feedback on performance from multiple sources can be intimidating. It may also take a long time on selecting the rater, designing questionnaire, and analyzing the data.

Diagrammatic representation of 360 Degree Appraisal System

Superiors

Internal Customer

External Customer

Self

Peer

Peer

Subordinate
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Assessment centre: An assessment centre is a central location where managers may come together to have their participation in job related exercises evaluated by trained observers. The principle idea is to evaluate managers over a period of time, say by one to three days, by observing and evaluating their behaviour across a series of selected exercises or work samples. Assesses are requested to participate in work groups (without leader), role-playing and other similar activities, which require the same attributes for successful performance, as in the actual job. After recording their observation of ratee behaviours, the raters meet to discuss these observations. The decision regarding the performance of each assesses is based upon this discussion of observations. Behaviourally Anchored Rating Scale (BARS): In this approach, broad categories of practice are identified, ideally through collaborations between supervisors and staff. Specific job behaviours are then linked to the categories. Measures of staff member behaviour are rated on a scale in relation to specific behaviour items, such as understands department functions. Job dimensions usually yield similar broad categories, such as planning, setting priorities, and responsiveness to supervision. Categories such as these may be useful in framing evaluation criteria in this approach to appraisal. Another means of approaching behaviour- based appraisal is the behavioural frequency scale. Here, desired behaviours are described and the staff member is evaluated on how often those behaviours occur. HR Accounting Method: This method evaluates performance from the monetary returns the employee yields to his/ her organization. A relationship is established between the cost included in keeping the employee and the benefit the organization derives from him or her. Performance of the employee is then evaluated based on the established relationship between the cost and the benefit.

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LIMITATION ON PERFORMANCE APPRAISAL SYSTEM

Performance appraisals are subject to a wide variety of inaccuracies and biases referred to as 'rating errors'. These errors can seriously affect assessment results. Some of the most common rating errors are: Leniency or severity: - Leniency or severity on the part of the rater makes the assessment subjective. Subjective assessment defeats the very purpose of performance appraisal. Ratings are lenient for the following reasons: a) The rater may feel that anyone under his or her jurisdiction who is rated unfavourably will reflect poorly on his or her own worthiness. b) He/She may feel that a derogatory rating will be revealed to the rate to detriment the relations between the rater and the ratee. c) He/She may rate leniently in order to win promotions for the subordinates and therefore, indirectly increase his/her hold over him. Central tendency: - This occurs when employees are incorrectly rated near the average or middle of the scale. The attitude of the rater is to play safe. This safe playing attitude stems from certain doubts and anxieties, which the raters have been assessing the rates.

Halo error: - A halo error takes place when one aspect of an individual's performance influences the evaluation of the entire performance of the individual. The halo error occurs when an employee who works late constantly might be rated high on productivity and quality of output as well as on motivation. Similarly, an attractive or popular personality might be given a high overall rating. Rating employees separately on each of the performance measures and encouraging raters to guard against the halo effect are the two ways to reduce the halo effect. Rater effect: -This includes favouritism, stereotyping, and hostility. Extensively high or low score are given only to certain individuals or groups based on the rater's attitude towards them and not on actual outcomes or behaviours; sex, age, race and friendship biases are examples of this type of error.

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Primacy and Regency effects: - The rater's rating is heavily influenced either by behaviour exhibited by the ratee during his early stage of the review period (primacy) or by the outcomes, or behaviour exhibited by the ratee near the end of the review period (regency). For example, if a salesperson captures an important contract/sale just before the completion of the appraisal, the timing of the incident may inflate his or her standing, even though the overall performance of the sales person may not have been encouraging. One way of guarding against such an error is to ask the rater to consider the composite performance of the rate and not to be influenced by one incident or an achievement. Performance dimension order: - Two or more dimensions on a performance instrument follow each other and both describe or rotate to a similar quality. The rater rates the first dimensions accurately and then rates the second dimension to the first because of the proximity. If the dimensions had been arranged in a significantly different order, the ratings might have been different. Spill over effect: - This refers lo allowing past performance appraisal rating lo unjustifiably influence current ratings. Past ratings, good or bad, result in similar rating for current period although the demonstrated behaviour does not deserve the rating, good or bad.

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ETHICS IN PERFORMANCE APPRAISAL

To abandon or abuse the performance appraisal process is a breach of business ethics. While some managers are skilled and genuine in reviewing an individuals performance, that does not appear to be typical. Many managers talk about ethics but do not recognize or act upon ethics in their day-to-day managerial responsibilities. Most ethical questions arise from people relationships within the organization. Managers must realize that ethics is the process of deciding and acting. The overall objective of high-ethics performance review should be to provide an honest assessment of performance and to mutually develop a plan to improve the individuals effectiveness. That requires telling people where they stand and being straight with them. It is important to keep the following points in mind: What are the primary objectives of the organization? What is valued most-adherence or result? How is the performance expected to contribute to the organization? What is this persons position on the team? How well does he or she fill that position?

If the manager really wants to know what concerns the individual he should ask the following questions: What result does he expect from this performance review sessions? What is his biggest frustration? How does he fell about his department and the organization? What does he want to accomplish?

When a performance review helps the individual recognize that his or her objectives are closely aligned with the organizations, the individual is more likely to perform at a higher level and the organization is less likely to lose a valuable employee. The objective of the performance review is to develop the person, not to threaten self esteem. Treatment of people is the most fundamental ethics issue. Performance review is a matter of ethics.

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POWER, POLITICS AND APPRAISAL

Politics rating happens. They are a fact of organizational life. The key is to get managers to look at the long term impact of how they use the rating process. If they took a long-term approach, they would tend to be more candid and objective. When a manager evaluates the performance of any employee, they have the discretion to use the rating process as they see fit to help them manage their operations. In this light it would be unwise to pass judgement on managers who operate in the political rating zone without fully understanding the intricacies of their relationship with individual subordinates and the culture of their organization. Yet, if manager are going to manipulate ratings for supposedly bigger picture reasons, those reasons should be good. They need to overcome downside consequences like diminished ability to reward high performers, damaged trust between bosses and subordinates, increased uncertainty and doubt among employees, potential legal and ethical issue for the manager, and the potential for creating more performance problems than solve. Under these kinds of conditions, cynicism abounds and pay for performance pronouncements become meaningless bromides. Most organization operates under the belief that performance appraisal serves a valuable function in managing people. As noted, the organization has two key responsibilities to its managers where appraisals are concerned: to enhance their appraisal skill. Toward these ends, the organizations goal should be to create an organizational culture that facilitates appraisal effectiveness.

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EXISTING PERFORMANCE APPRAISAL SYSTEM USED IN DPL

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PERFORMANCE APPRAISAL FORM

(FOR OFFICERS) Employee no: Present designation: Date of appointment in DPL:

Employee name: Present place of posting: Date of present posting: Qualification

ASSESSMENT KEY
Grade A B Rating outstanding Good Description Very exceptional rare performance. Better performance than is normally expected, usually exceeds requirement of the position Normally expected performance, meet requirements of the position, typical of majority of employee in this category Performance less than normally Expected in this position Clear evidence of performance not meeting job requirement

Satisfactory

Below Normal

Poor

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ANNUAL CONFIDENTIAL REPORT of Sri

( FACTOR Reporting officer personal traits 1. Character & conduct(attitude) 2. Commitment to job 3. Honesty & integrity 4. Initiative & sense of responsibility 5. Team spirit & Coordination 6. Attitude towards cost control 7. Punctuality & Discipline Managerial Traits 1. Leadership 2. Problem Analysis & Decision Making 3. Communication Ability 4. Interpersonal Skill 5. Devotion to duty 6. Job Knowledge 7. Aptitude for development 8. Promptness In disposal of work 9. Intelligence & General Ability 10.Capacity to plan And Execute Work 11.capacity for sustained work 12.convincing & motivating others 13.qualitative output
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) for the period from.to GRADE Supervising officer Reviewing officer

Remarks if any by accepting authority

PERFORMANCE APPRAISAL REPORT

(For staffs) A. NAME: EMO NO: Department: Period: From SL.NO. 1 B 2 3 subject Knowledge of work Initiative Promptness in fruitful disposal of work Communication skill (written & oral) Behaviours with colleagues & member of public To Score 3 3 3 Designation:

1 1 1

2 2 2

4 4 4

5 5 5

TOTAL HEALTH

Signature of Reporting Officer

Signature of the head of department

Legends: 1-Poor, 2-Average, 3-Satisfactory, 4-Good, 5-Excellent

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RESEARCH METHODOLOGY

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FLOW CHART OF RESEARCH METHODOLOGY

PROJECT MISSION

PLANNING

DATA COLLECTION

PRIMARY DATA

SECONDARY DATA

ANALYSIS OF DATA

CONCLUSION

RECOMENDATION

REPORT GENERATE

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METHODOLOGY
Research methodology is a way to systematic solve the research problem. Research simply means a search for facts. The search for facts may be made through either arbitrary (or unscientific) method or scientific method. Young defines Research as a scientific undertaking which, by means of logical and systematic techniques, aim to: a) Discover of new facts or verify and test old facts. b) Analyze their sequences, interrelationships and causal explanations, c) Develop new scientific tools, concepts and theories which would facilitate reliable and valid study of human behaviour. d) Ker linger defines research as a systematic, controlled, empirical and critical investigation of hypothetical propositions about the presumed relations among natural phenomena.

Objectives of the research study

The following are the objectives of the study: To develop my understanding of the study-performance appraisal system implemented in various organizations varies according to the need and suitability. Through my research, I have tried to study the kind of appraisal used in the organization and the various pros and cons of this type of system. To conduct a study on social behaviour:-social behaviour is a very unpredictable aspect of human life but social research is an attempt to acquire knowledge and to use the same for social development. To enhance the welfare of employees:-the appraisal system is conceived by the management but mostly does not take into consideration the opinion of the employees. This can lead to adverse problems in the organization. Therefore by this study I have attempted to put forth the opinion of the employee with respect to the acceptability of the performance appraisal system. To exercise social control and predict changes in behaviour:-the ultimate object of my research is to make it possible to predict the behaviour of individuals by studying the factors that govern and guide them.
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RESEARCH DESIGN
A research design is a type of blueprint prepared on various types of blueprint available for the collection, measurement and analysis of data. A research design calls for developing the most efficient plan of a research study is based on the purpose of the study. A research design is the specification of methods and procedures for acquiring the information needed. It is the overall pattern or framework of the project that stipulates what information is to be collected from which source and by what procedures. SAMPLING:An integral component of a research design is the sampling plan. Specifically, it addresses three questions: Whom to survey (the sample unit) How many to survey (the sample size) & How to select them (the sampling procedure) Making a census study of the whole universe will be impossible on the account Of limitations of time. Hence sampling becomes inevitable. A sample is only a portion of the total employee strength. According to, a famous statistician, the object of sampling is to get maximum information about the parent population with minimum effort.

Methods of sampling:1. Probability sampling: - In probability samples, each member of the population has a known non-zero probability of being selected. Probability methods include random sampling, systematic sampling, and stratified sampling. The advantage of probability sampling is that sampling error can be calculated. Sampling error is the degree to which a sample might differ from the population. When inferring to the population, results are reported plus or minus the sampling error. 2. Non probability sampling: - In no probability sampling, members are selected from the population in some non-random manner. These include convenience sampling, judgment sampling, quota sampling, and snowball sampling. In non probability sampling, the degree to which the sample differs from the population remains unknown.
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DATA COLLECTION METHODS

Collection of data is the first steps in statistics. The data collection process follows the formulation for research design including the sample plan. The data can be primary or secondary.

I.

Primary data:

Primary research consists in research to collect original primary data. It is often undertaken after the researcher has gained some insight into the issue by collecting secondary data. This can be through numerous forms, including questionnaires, direct observation and telephone interviews amongst others. The term primary research is widely used in academic research, market research and competitive intelligence. There are advantages and disadvantages to primary research.

Advantages:

Addresses specific research issues as the researcher controls the search design to fit their needs Great control; not only does primary research enable the marketer to focus on specific subjects; it also enables the researcher to have a higher control over how the information is collected. Taking this into account, the researcher can decide on such requirements as size of project, timeframe and goal.

Disadvantages:
Compared to secondary research, primary data may be very expensive in preparing and carrying out the research. Costs can be incurred in producing the paper for questionnaires or the equipment for an experiment of some sort. In order to be done properly, primary data collection requires the development and execution of a research plan. It takes longer to undertake primary research than to acquire secondary data. Some research projects, while potentially offering information that could prove quite valuable, may not be within the reach of a researcher. By the time the research is complete it may be out of date. Low response rate has to be expected. An example of primary research: the government wants to know if people are pleased with how the government is being run, so they hand out questionnaires to the public asking if they are happy and, if not, how to improve.

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II.

Secondary data:

Secondary data is data collected by someone other than the user. Common sources of secondary data for social science include censuses, surveys, organizational records and data collected through qualitative methodologies or qualitative research. Primary data, by contrast, are collected by the investigator conducting the research. Secondary data analysis saves time that would otherwise be spent collecting data and, particularly in the case of quantitative data, provides larger and higher-quality databases that would be unfeasible for any individual researcher to collect on their own. In addition, analysts of social and economic change consider secondary data essential, since it is impossible to conduct a new survey that can adequately capture past change and/or developments. Advantages of Secondary Data Readily available Inexpensive to find Alternative to primary data collection Alert researcher to potential problem areas Clarify research problems and hypotheses. Provide possible solution to marketing problem Disadvantages of Secondary Data Units of measurement may be different Statistical procedures may be misleading Class or category definitions may differ Outdated publications Reliability, validity, accuracy problems

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Questionnaire

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Sample Questionnaire:
Tick the answer which you think is appropriate. Employee Name: Designation: Gender: Address: Male Female

Telephone No.:

1. Are all the factors taken into consideration while appraising the performance? a) agree b) Neutral c) Disagree 2. Do your seniors assist you in the time of your need? a) Every time b) Often d) Rarely e) Never

c) Sometimes

3. Is Performance Appraisal system given importance in DPL as Career Development? a) Agree 4. b) Neutral c) Disagree

How do you find Performance Appraisal model in this organization? a) Simple d) Efficient b) Complicated e) Inefficient c) Subjective

5. Do you feel free to express to your appraiser your disagreement regarding the appraisal decision? a) Yes b) No c) Sometime

6. Does your senior manager provide you with continuous feedback to help you to achieve your GOALS? a) Yes b) No c) Sometime

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7.

Does the performance appraisal motivate the employees? a) Agree b) Neutral c) Disagree

8. Is appropriate training given to an employee who fails to meet the expected performance level? a) Yes d) Often 9. Are you satisfied with the Current Appraisal System used in DPL? a) Yes b) No b) No c) Sometimes

10. According to you, how often should performance appraisal take place? a) Once in a week d) Every 6 months b) Once a month e) Once a year c) Every 3 months

11. According to you, which are the areas that should be improved upon? a) Awareness d) Appraisal Frequency b) Standard e) Appraiser c) Monetary Incentives

If any other reason please mention

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ANALYSIS

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Graphical representation of questionnaire

Are all the factors taken into consideration while appraising the
performance?

Agree Neutral Disagree

Pie chart showing respondent view

Analysis:-This question was purposely put in to questionnaire to know

whether the employees are aware of their performance appraisal or not. Maximum no. of employees has agreed to the answer. This shows they have an idea and is fully aware of performance appraisal system. They think that all the factors are considered during performance appraisal.

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 Do your seniors assist you in the time of your need?

Every time Often Sometimes Rarely Never

Pie chart showing respondent view

Analysis:-this question was put into questionnaire to find out: the employees are getting properly help to do their job or not. if the employees are happy with their supervisors, definitely they will perform well. And if they will perform well surely they will get a chance to be appraised. In this case maximum employee (33) said they get proper help from their supervisor.

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 Is Performance Appraisal system given importance in DPL as Career Development?

Agree Neutral Disagree

Pie chart showing respondent view

Analysis: from the above chart it can be easily said that there is no value of performance appraisal to the employees in DPL. As it is a government organization, appraisal is mostly based on years old government rules and policy. Due to this reason most of the employees (31) have a negative attitude towards this and strongly disagree with this question. Through they have been trained about appraisal at their training period but in practical it is not implemented so much.

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 How do you find Performance Appraisal model in this organization?

20 18 16 14 12 10 8 6 4 2 0 Simple Complicated Subjective Efficient Inefficient

Bar Graph showing respondent view

Analysis: from the above chart it can be easily said that majority of the sample response is subjective and efficient. so since majority finds its subjective the H.R department should look after this and make it more simple. In my opinion the H.R department follow an open door policy,so that any queries regarding the appraisal policy can be clarified to employees satisfaction.

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 Do you feel free to express to your appraiser your disagreement regarding the appraisal decision?

Yes No Sometime

Pie chart showing respondent view

Analysis: the major reason of disagreement is that the respondents did not feel free to express their displeasure, if any to rating given to them. The appraisal system can only be effective if it takes into consideration the employee side also. There may be various aspects that the appraiser might have accidently overlooked or certain circumstances misinterpreted which can be clarified if the employee is more open and comfortable with the appraiser.

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 Does your senior manager provide you with continuous feedback to help you to achieve your GOALS?

Yes No Sometime

Pie chart showing respondent view

Analysis: timely feedback is necessary for any industries good manager must not wait for performance appraisal time to give feedback. The majority of the respondent are agree with the question that their manager are helpful and provides continuous feedback to achieve their goal. This does show those employees are satisfied with their manager. According to me appraisal is not the same as the feedback. Feedback should be given throughout the year.

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 Does the performance appraisal motivate the employees?

Agree Neutral Disagree

Pie chart showing respondent view

Analysis: about all the respondents maximum no. of employees are not satisfied with the recognition system. For this reason a negative attitude come towards their performance and they demotivated also. If an employee is given a high performance, it should be recognized. But being a government organization it is not easy to start up a new incentives and promotion schemes as they have to follow the government rules and policy.

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 Is appropriate training given to an employee who fails to meet the expected performance level?
25

20

15

10

0 Yes No Sometimes Often

Bar graph showing respondent view

Analysis: - from the above chart it can be easily said that a majority of respondent are agree with this point that the training, which given to them are appropriate.

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 Are you satisfied with the Current Appraisal System used in DPL?

Yes No

Pie chart showing respondent view

Analysis: the satisfaction level of the respondent to the appraisal system is quite high as can be seen from the above chart. This is a good sign as increased level of satisfaction is the main emphasis of any appraisal system.

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 According to you, how often should performance appraisal take place?

Once in a week Once a month Every 3 months Every 6 months Once a year

Pie chart showing respondent view Analysis: performance appraisal review is a constant process and lesser the frequency between the appraisals, the better will be the effect. The majority of the respondent wants the frequency of the appraisal to be once in a week. The employees say that if the appraisal is done on frequent basis the employee and the organization both has a chance to find out the gaps in his/her performance on a more regular basis which will help them to improve more on their performance and thereby eliminate waste.

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 According to you, which are the areas that should be improved upon?
30 25 20 15 Column1 10 5 0 Awareness Standard Monetary Incentives Appraisal Frequency Appraiser

Bar graph showing respondent view

Analysis:-this question breaks up different phases of the appraisal system and tries to come to derive a conclusion as to the areas of improvement in the process of evaluation. Majority of the respondents say that there should be change on aspect of monetary incentives. This does not refer to an increase in monetary incentives but a more reasonable incentive structure that will properly reward increased and efficient performance. The awareness is another aspect that needs to review. Standard of performance should be improved according to the respondents.

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On analysing the data the following study is done

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Limitation
The following are the limitations faced by me during the course of the study: There is no concrete basis to prove that the response given by is true measure of opinion of all the employees as a whole. Therefore it is assumed that the employees responds are true, original and bias free. Random sampling was used as the mode of conducting the research. The response of the respondents may not be accurate thinking that the management might misuse the data. So a fear factor is working at the time of collecting the data Due to the fear factor most of the respondent might be influenced by their peers in answering the question. Due to the fact that most of respondents were busy in their official work, the questions might not have been answered with due sincerity. The questionnaire contains mostly multiple-choice questions; therefore may respondents may not have given a proper thought before answering the question.

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Conclusion and recommendations

During my interns study of Performance Appraisal system in D.P.L. what I have observed from that I derive to the following conclusion:

1) After having analysed the data, it was observed that the method of Performance Appraisal available is outdated. To be an effective tool, it has to be on continuous basis. 2) The very concept of Performance Appraisal should be educated throughout the organization. Unless this is done, people would not accept it, be it how important to the organization. 3) To market such a concept, it should not start at bottom instead it should be started by the initiative of the top management. this would help in percolating down the concept to the advantage of all, which includes the top management as well as those below them. 4) Further at the time of confirmation, the employee should be aware also. Detailed appraisal of employees work must be done. 5) A neutral panel of people should do the appraisal and to avoid biasness to a marked extent, objective method should be employed with having accurate data. 6) The job and the expected performance from the employees should be decided well in advance and that too with the consensus with them. 7) Transparency into the system should be insured through the discussion about the employees performance with the employee

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concerned and trying to find out the grey area so that training can be implemented to improve on that.

8) One important function of Performance Appraisal is to help employees to develop effective communication so they can contribute more effectively. In order for the employees to develop and learn they need to know what they need to change, where they have fallen short, and what they need to do. In order to make it meaningful and promote growth, far more information must be added to the appraisal process and the related information should be transparently shared with the employee. 9) The Performance Appraisal process is not ready for develop. Currently the process faces too many constrain due to Government policy and political barrier. It should be revised well before successfully applied. In my opinion implementation plans and systems are developed for a new phase of Performance Appraisal system. As part of this new phase, forms should be revised & field tested and this field test should be simple and rapid. 10) To ensure the sustainability of the process, training should be integrated into routine meeting held between employees and the supervisors or management. This will help the management to decide, training needs for employees Performance Appraisal. 11) Attention needs to be paid to the issue of who should appraise whom. Responsibilities of supervisors for supervision, and appraisal of different categories of employees need to be clarified. Ideally in the present scenario, appraisal should be done taking the views of all concerned parties who have some bearing on employee. But, since a change in the system is required it cannot be a drastic one. It ought to be gradual and a change in the mindset of both the employees and the head is required.
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BIBLIOGRAPHY
www.dpl.net.in www.google.com En.wikipedia.org DPL document and magazines

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