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A study on EPMS (Executive

Performance Management

System) at RDCIS,SAIL.

By :-

sujit kumar mishra

Project Mentor


Sr. Manager(IR/Wel.)

About Project

  • The Project was assigned by the group mentor to find out the effectiveness and acceptability of the

new EPMS among Executive employees.

  • The data was to be collected from Executive Employees of Grade E1-E5 only.

  • Questionnaire was used to collect the data for


  • Questionnaire was framed and then got approved by the group mentor.

  • Data received was analyzed with the help of pie- charts and later on by Factor Analysis.


  • To gather information about organization’s old

and new PMS (Performance Management


  • To find the effectiveness of the new EPMS w.r.t the old one.

  • To find the satisfaction of the employees about the EPMS.

  • To identify the scope of improvement in EPMS

  • To identify the need for training and


Introduction : Theory

  • Performance: the results accomplished by an employee in meeting specific Objectives or the development of competencies necessary for effectively doing a job.

  • Performance Management: is a continuous systematic process (of supervisor and employees),by which an organization involves its employees in improving organizational effectiveness in the accomplishment of the organisation's mission and strategic goals.

  • Performance Management System (PMS): is a communication tool directed by managers and supervisors, but requires active participation by employees, to provide communication and support that help employees succeed, focuses on managing employee performance towards successful achievement of the expectations in the work plans and organizational goals.

Advantages of performance of PMS

  • Sets performance expectations linked to organizational objectives

  • Improves communication between the superior and subordinate.

  • Assesses the training and development need of employees.

  • Designing effective compensation and recognition systems that reward people for their


  • Providing promotional/career development opportunities.

Advantages cont ..

  • Provide effective orientation, education, and


  • The decisions are more likely to be accepted by the employees

  • To effect promotion based on competence and performance.

  • Develops clear job descriptions.

Bi-directional performance management

recognizes that for performance to improve,

both manager and employee must receive feedback on how well they are fulfilling their

obligations to the organization and to each other. It also recognizes that each staff member and his/her manager must clarify and negotiate expectations regarding each other's roles.

Performance Management Process

Performance Management Process
: means setting performance expectations and goals for groups and individuals to channel their efforts toward

: means setting performance expectations and goals for groups and individuals to channel their efforts toward

achieving organizational objectives.

: means setting performance expectations and goals for groups and individuals to channel their efforts toward

: means consistently measuring performance and providing ongoing feedback to employees and work groups on their progress toward reaching their goals.

: means increasing the capacity to perform through training, giving assignments that introduce new skills or

: means increasing the capacity to perform through training, giving assignments that introduce new skills or higher levels of responsibility, improving work processes, or other methods.

: means increasing the capacity to perform through training, giving assignments that introduce new skills or

: means evaluating employee or group performance against the elements and standards

(comparing performance over time or among various

employees) in an employee's performance plan. The rating of record is assigned according to procedures included in the organization's appraisal program.

: means recognizing employees, individually and as members of groups, for their performance and acknowledging their

: means recognizing employees,

individually and as members of groups, for

their performance and acknowledging their contributions to the organization's mission. A

basic principle is that all behavior is controlled

by its consequences, hence better rewards will motivate employees to do better.

  • Performance Management is a continuous process. Appraisals are periodic activities.

  • Performance Management with performance appraisal should lead to increased performance.

  • In itself an appraisal is not performance management, but it is one of the ranges of tools that can be used to manage performance.

  • Performance Management System with an appraisal component built into them should mean improved performance, more motivated people, and more competent people.

Performance Management should be:

  • Formal: A clearly defined process that everyone understands and accepts.

  • Frequent: Consistent information dissemination.

  • Relevant: Information relevant to the departments and decisions.

  • Reliable: Everyone believes in the information.

  • Timely: right on time

  • Tied to outcomes: Everyone is held accountable for their

performance and are given the

right tools to achieve the goals.

  • Feedback: necessary suggestions

  • Leadership: People from different departments can collaborate on changing processes and procedures and making day-to-day operational decision

A PMS will only be effective if it ..

  • Is trusted to be fair: Employees need to be reassured that the system will be used equitably

across their organization.

  • Both managers and employees see that

they have something to gain from using

the system: Correct implementation

sometimes requires managers to change the way

they currently work.

If they do not see how it

makes their job easier the system will quickly be

seen as a bureaucratic chore and will not be implemented successfully

Contd ..

  • objectively measures performance :if it is not objective, it will not operate as a system but be continually challenged by employees or managers. Objectivity can be achieved by setting competency standards or goals for various levels of performance.

  • Addresses behavior or incompetence: that results in poor performance by discipline, development or redundancy.



The Executive Performance Appraisal System (EPAS) was earlier system that continued till

2007-08. After which a new system called

Executive Performance Management System (EPMS) was introduced at SAIL.


no transparency in the previous system in respect of assessment of individuals.

only assessed the employees based on

performance ,completely lacked assessment based on potential factors, values, competencies.

Drawbacks contd ..

  • Grading were given based on eligibility for promotion and not based on tasks or activities performed.

  • No emphasis given on Development of Competencies.

  • Training need is not identified through EPAS.

  • EPAS system was in paper form.


  • appraised on Performance factors and Competencies factors (which includes Potential and Values) separately and they will be given two separate grading.

  • Online Self-assessment by the individual based on his achievements / shortcomings of KPAs as per task & targets set at the start of the year.

  • PMC to consist of HoD, Reviewing and Reporting Officers to reduce subjectivity in grading as well

as ownership of the individual executive’s grading

Contd ..

  • Competency assessments through ADCs and 360 Degree Feedback to feed into the development plans.

  • Transparency in the new system is being introduced through communication of final grading of performance to all executives.

  • There will be 4 grading EP, HP, AP & LP instead of OABC.


Sampling Technique used-Random Sampling Number of samples: 60 Response Rate: 50 Did not response: 10

Nature of respondents: Executives of Grade E- 1 to E-5.

Data Collection: Questionnaires

A questionnaire was prepared keeping in mind

the objective under study. Questions based on the topic needed to be answered on a 5-point

based scale which was grouped as follows:-

Strongly agree, Agree, Not sure, Disagree, Strongly Disagree.

The data collected was primary in nature as it was collected directly from the employees of the


Data Analysis and Interpretation


The online EPMS in SAIL, RDCIS is very effective in terms of relationship creation between the line

manager and the employee and also among the employees themselves.

The half-yearly performance appraisal helps the employee to know their present capability and

also helps them to enhance their qualities to do

much more better in whatever work is assigned to them. Thus, it also initiates the under-

performers to perform better for the upcoming

performance appraisal.







feedback are stated as follows:-



  • 1. More opportunities of training and development required.

  • 2. Job Rotation

  • 3. Guide and help of senior personnel

  • 4. Cooperation and coordination with the management

  • 5. Modernized thought processes

  • 6. Salary hikes

  • 7. Continuous updating of skills and knowledge with time to

time training

8.To lessen the biasedness .