DISSERTATION REPORT

ONA STUDY OF PERFORMANCE APPRAISALATBHEL

Submitted in partial fulfillment of the requirement for award of the degree ofMASTER OF BUSINESS ADMINISTRATION2013-2015(UTTARAKHAND TECHNICAL UNIVERSITY, DEHRADUN)

ROORKEE COLLEGE OF MANAGEMENT & COMPUTER APPLICATION, ROORKEE Submitted To:Submitted By: Mrs. ALKA CHAUDHARY SHALINI SINGHProfessor (RCMCA)MBA (4th SEM)

ACKNOWLEDGEMENT

I am indebted to Mr. Girish, the Human Resource Manager of BHEL, for giving me an opportunity to do survey in this esteemed organization. His knowledge & experience was a great motivating factor. This effort would not have been possible without his able, efficient, valuable and timely advice, insights and thoughts. I am very much thankful to sir his valuable guidance and support.I take this opportunity to express my heartfelt gratitude to my faculty guide Mrs. Alka Choudhary, faculty. I am thankful to mam for her valuable support and guidance throughout the project.I am equally grateful to each and every member of BHEL limited for their whole-hearted cooperation in completing this project in stipulated time.I extend my sincere thanks to all distributers, wholesalers who helped me for my project.Last but not the least, I would like to thank my family members and friends whose unbounded support facilitated the successful completion of the project.

DECLARATION

I, Shalini Singh student of MBA 4th Sem from RCMCA, Roorkee declare that all the information, facts & figure represented in this report are actual and collected by me in my dissertation report PERFORMANCE APPRAISAL OF BHEL with special reference to BHEL Haridwar UNIT.

(SHALINI SINGH)

PREFACEThe professional training is the internal part of an M.B.A. program. It helps the Students to understand practical aspects of Business Management in a better way as a part of my MBA program at Institute of Management Studies I was supposed to work with the organization. Marketing Research is the systematic and objective identification, collection, analysis, dissemination , and use of information for the purpose of improving decision making related to identification and solution of problems and opportunity .Perception is the process, by which an individual selects, organizes and interprets information inputs to create a meaningful picture of the world around . To be a Master of Business Administration student is a matter of pride because we are in a field, which helps us to develop from a normal human being into a disciplined, and dedicated professional. One has to be a good learner to sharper knowledge in the particular field to achieve and attain the desired goals and heights. I conducted to gain an understanding of what goes in to mind of the employers about PERFORMANCE APPRAISAL. I used research questionnaires as the research and data collection tools. The responses were collected from 50 respondents from various areas.

CONTENTS

1. Introduction ----------------------------------------------------------------------------11.1 Introduction of the topic ---------------------------------------------------------21.2 Purpose of study-------------------------------------------------------------------31.3 Methods----------------------------------------------------------------------------- 92. Introduction of Company2.1 Production facilities--------------------------------------------------------------172.2Company Profile---------------------------------------------------------------------192.4Mission of Company-----------------------------------------------------------------222.4Objective of the study 3. Research Methodology 3.1 Research Size ---------------------------------------------------------------------34 3.2 Data Collection -------------------------------------------------------------------35 3.3 Scope of the study ------------------------------------------------------------------46 4. Data analysis ----------------------------------------------------------------------------53 5. Findings and the recommendations from the project ------------------------- 57 6. Conclusion -------------------------------------------------------------------------------61 7. Bibliography -----------------------------------------------------------------------------63 8. Annexure ---------------------------------------------------------------------------------68

CHAPTER 1

INTRODUCTION

1.1 INTRODUCTION OF THE TOPIC

PERFORMANCE APPRAISAL Performance Appraisal is the systematic evaluation of the performance of employees and to understand the abilities of a person for further growth and development. Performance appraisal is generally done in systematic ways which are as follows: The supervisors measure the pay of employees and compare it with targets and plans. The supervisor analyses the factors behind work performances of employees. The employers are in position to guide the employees for a better performance.

According to Flippo, a prominent personality in the field of Human resources, Performance appraisal is the systematic, periodic and an impartial rating of an employees excellence in the matters pertaining to his present job and his potential for a better job." Performance appraisal is a systematic way ofreviewingand assessing the performance of an employee during a given period of time and planning for his future.It is a powerful tool to calibrate, refine and reward the performance of the employee. It helps to analyze his achievements and evaluate his contribution towards the achievements of the overall organizational goals.

By focusing the attention on performance, performance appraisal goes to the heart ofpersonnel managementand reflects the management's interest in the progress of the employees.

PURPOSE OF PERFORMANCE APPRAISAL

Increment in salary, promotion, transfer, layoff, termination.

Training and development needs.

Providing feedback on performance.

Basis for research and reference for personnel decision in future

METHODS OF PERFORMANCE APPRAISAL

1. Ranking Methods:Ranking method is the oldest and simplest method of rating the employees. Here, all the employees who are doing the same job are compared with each other. Then, each employee is given a particular rank, i.e. First Rank, Second Rank, etc. The best employee is given the first rank, and the worst employee is given the last rank.

There are three ranking methods. VizSimple Ranking Method, Alternation Ranking Method, and Paired ComparisonRanking method can be done very quickly and conveniently.

2. Graphic Rating Scale Method:Graphic rating scale method is one of the oldest and widely used methods of performance appraisal. Here a graphic scale is used to rate the employee. Factors such as quality of work, quantity of work, dependability, etc. are rated.A simple graphic rating scale is shown in the sample table below.Graphic rating scale method is easy to understand and simple to use. It also consumes less time. However, it involves a lot of paper work and there are chances of bias by the rater.

3. Confidential Reports:

This is an old and traditional method of rating the employees. A confidential report is a report about the employee. It is prepared by his immediate superior. It contains information about the employee's strengths, weaknesses, major failure and achievements. It also contains information about the employee's personality traits (qualities) and about his behavior. Confidential report is used to take decisions about transfers, promotions, etc.

4. Checklist Method:First a checklist is prepared. It contains some statements about the employees behavior on the job.For e.g. check the following sample of a simple checklist.The rater has to tick mark "Yes" or "No" for each statement. The rater must have full knowledge about the employee's behavior on the job.The main advantages of checklist method are:- It is simple, It is convenient, It takes less time, and It is very economical.The main disadvantage of checklist method is that the statements are structured, and it does not have depth like the Critical Incident Method and the Essay Method.

5. Critical Incident MethodHere, the supervisor writes a brief report about any incident, which affects the performance of the job. The incident may be positive or negative. For e.g. A salesman is very patient with a difficult customer, and he succeeds in selling the goods to that customer. This is a critical incident. The supervisor writes a brief report about this incident. This report is in favour of the salesman. So the salesmen will get a high rating. This method has some disadvantages, as some supervisors only record negative incidents. They do not record positive incidents. Some supervisors are also biased while recording the incidents.6. Narrative Essay:Narrative Essay is the simplest method of rating an employee. Here, the rater writes in detail, the employee's strengths, weaknesses and potential. He also gives suggestions for improvement. If the essays are written well then they can be used to improve the performance of the employees. This method is better than other complex methods.

MODERN METHOD OF PERFORMANCE APPRAISAL

1. ASSESSMENT CENTRES An assessment centre typically involves the use of methods like social/informal events, tests and exercises, assignments being given to a group of employees to assess their competencies to take higher responsibilities in the future. Generally, employees are given an assignment similar to the job they would be expected to perform if promoted. The trained evaluators observe and evaluate employees as they perform the assigned jobs and are evaluated on job related characteristics.The major competencies that are judged in assessment centers are interpersonal skills, intellectual capability, planning and organizing capabilities, motivation, career orientation etc. assessment centers are also an effective way to determine the training and development needs of the targeted employees.

2. BEHAVIORALLY ANCHORED RATING SCALESBehaviorally Anchored Rating Scales (BARS) is a relatively new technique which combines the graphic rating scale and critical incidents method. It consists of predetermined critical areas of job performance or sets of behavioral statements describing important job performance qualities as good or bad (for eg. the qualities like inter personal relationships, adaptability and reliability, job knowledge etc. These statements are developed from critical incidents.In this method, an employees actual job behaviour is judged against the desired behaviour by recording and comparing the behaviour with BARS. Developing and practicing BARS requires expert knowledge.

3. HUMAN RESOURCE ACCOUNTING METHODHuman resources are valuable assets for every organization. Human resource accounting method tries to find the relative worth of these assets in the terms of money. In this method the Performance appraisal of the employees is judged in terms of cost and contribution of the employees. The cost of employees include all the expenses incurred on them like their compensation, recruitment and selection costs, induction and training costs etc. whereas their contribution includes the total value added (in monetary terms). The difference between the cost and the contribution will be the performance of the employees. Ideally, the contribution of the employees should be greater than the cost incurred on them.

4. 360-DEGREE-PERFORMANCE-APPRAISAL METHOD360 degree feedback, also known as 'multi-rater feedback', is the most comprehensive appraisal where the feedback about the employees performance comes from all the sources that come in contact with the employee on his job. 360 degree respondents for an employee can be his/her peers, managers (i.e. superior), subordinates, team members, customers, suppliers/ vendors -anyone who comes into contact with the employee and can provide valuable insights and information or feedback regarding the "on-the-job" performance of the employee.360 degree appraisal has four integral components:1. Self-appraisal2. Superiors appraisal3. Subordinates appraisal4. Peer appraisal.

SUPERIOR

PEEREMPLOYEE

SELF

SUBORDINATE

Four Integral Components of 360 Degree Appraisal

Self-appraisal gives a chance to the employee to look at his/her strengths and weaknesses, his achievements, and judge his own performance. Superiors appraisal forms the traditional part of the 360 degree performance appraisal where the employees responsibilities and actual performance is rated by the superior. Subordinates appraisal gives a chance to judge the employee on the parameters like communication and motivating abilities, superiors ability to delegate the work, leadership qualities etc. Also known as internal customers, the correct feedback given by peers can help to find employees abilities to work in a team, co-operation and sensitivity towards others.Self-assessment is an indispensable part of 360 degree appraisals and therefore 360 degree Performance appraisal have high employee involvement and also have the strongest impact on behavior and performance. It provides a "360-degree review" of the employees performance and is considered to be one of the most credible performance appraisal methods.360 degree performance appraisal is also a powerful developmental tool because when conducted at regular intervals (say yearly) it helps to keep a track of the changes others perceptions about the employees. A 360 degree appraisal is generally found more suitable for the managers as it helps to assess their leadership and managing styles. This technique is being effectively used across the globe for performance appraisals. Some of the organizations following it are Wipro, Infosys, and Reliance Industries etc.

5. MANAGEMENT BY OBJECTIVES (MBO) METHODThe concept of Management by Objectives (MBO) was first given by Peter Drucker in 1954. It can be defined as a process whereby the employees and the superiors come together to identify common goals, the employees set their goals to be achieved, the standards to be taken as the criteria for measurement of their performance and contribution and deciding the course of action to be followed.

The essence of MBO is participative goal setting, choosing course of actions and decision making. An important part of the MBO is the measurement and the comparison of the employees actual performance with the standards set. Ideally, when employees themselves have been involved with the goal setting and the choosing the course of action to be followed by them, they are more likely to fulfill their responsibilities.

CHAPTER 2.INTRODUCTIONOFCOMPANY

COMPANY PROFILE

Background & Management

Values, Mission & Objective

BHELs product profile

Shareholding pattern

BHEL: A CORPORATE GIANT Established in the late 50's BHARAT HEAVY ELECTRICALS LIMITED (BHEL) is a name which is recognized across the industrial world. It is one of the largest engineering and manufacturing enterprises in INDIA and is one of the leading international companies in the power field. BHEL offers a wide spectrum of products and services for core sectors like power transmission, industrial transportation, oil and gas, telecommunication etc. Besides supply of non-conventional energy systems. It has also embarked into other areas including defense and civil aviation. A dynamic 63000 strong team embodies the BHEL philosophy excellence through continuous striving for state of the art technology. With corporate headquarters in NEW DELHI, fourteen manufacturing units, a wide spread regional services network and projects sites all over India and even abroad, BHEL is India's industrial ambassador to the world with export presence in more than 50 countries.B.H.E.L.'s range of services extent from project feasibility studies to after sales services, successfully meeting diverse needs through turnkey capability.BHEL has had a consistent track record of growth, performance and profitability. The World Bank in its report on the Indian Public Sectors, has described BHEL as one of the most efficient enterprises in the industrial sector, at par with international standards of efficiency". BHEL has acquired ISO 9001 certificate for most of its operations and has taken up Total Quality Management (TQM). All the major units/divisions of BHEL have been upgraded to the latest ISO-9001: 2000 version quality standard certification for quality management. All the major units/divisions of BHEL have been awarded ISO-14001 certification for environmental management systems and OHSAS-18001 certification for occupational health and safety management systems.BHEL occupies an all-important niche as evident by its ranking by CII amongst top eight PSUs based on financial performance. Recently in survey conducted by business India, BHEL has been rated as seventh Best Employer in India.

International Business:-

BHEL has, over the years, established its references in over 60 countries of the world. These references encompass almost the entire range of BHEL products and services, covering Thermal, Hydro and Gas based turnkey power projects, substation projects, and rehabilitation projects; besides a wide variety of products like: Transformers, Compressors, Valves and Oil field equipment, Electrostatic Precipitators, Insulators, Heat Exchangers, Switchgears, Castings and Forgings etc. Some of the major successes achieved by BHEL have been in Gas-based power projects in Oman, Libya, Malaysia, Saudi Arabia, Iraq, Bangladesh, Sri Lanka, China, Kazakhstan; Thermal Power Projects in Cyprus, Malta, Libya, Egypt, Indonesia, Thailand, Malaysia; Hydro power plants in New Zealand, Malaysia, Azerbaijan, Bhutan, Nepal, Taiwan and Substation projects & equipment in various countries. Execution of these overseas projects has also provided BHEL the experience of working with world-renowned Consulting Organizations and Inspection Agencies.

The Company has been successful in meeting demanding requirements International markets, in terms of complexity of the works as well as technological, quality and other requirements viz. HSE requirement, financing package, associated O&M services to name a few. BHEL has proved its capability to undertake projects on fast-track basis. BHEL has also established its versatility to successfully meet the other varying needs of various sectors, be it captive power, utility power generation or for the oil flexibility to exhibited adaptability by manufacturing and supplying intermediate products.

Values: Strike adherence to commitments Foster learning, creativity and team work. Ensure speed of response Respect for dignity and potential for individual Loyalty and pride in the company Zeal to excel and zest for change Integrity and fairness in all matters Most of them have been rephrased. "Zest for change" has been added as change has been integral with success and the rate at which change is needed is very high compared to earlier period.

OBJECTIVES

GROWTHTo ensure a steady growth by enhancing the competitive edge of BHEL in existing businesses, new areas and international operations.

PROFITABILITY

To provide a reasonable & adequate return on capital employed, primarily through improvement in operational efficiency, capacity utilization & productivity and generate adequate internal resources to finance the companys growth

CUSTOMER FOCUS

To build a high degree of customer confidence by providing increased value for his money through internationals standards of products quality, performance and superior customer services

PEOPLE ORIENTATION

To enable each employee to achieve his potential, improve his capabilities, perceive his role & responsibilities and participate & contribute positively to the growth and success of the Company. To invest in human resources continuously and be alive to their needs

IMAGE

To fulfill the expectations which stakeholders like government as owner, employees and the country at large have from BHEL.

BHEL PRODUCT PROFILE

1. Power GenerationPower Generation Sector comprises thermal, hydro and nuclear power plant business. As of 31.3.2006.BHEL supplied sets account for 76741 MV in the country, as against nil till 1969-70.Custom- made hydro sets of Francis, Pelton and Kalpan for different head-discharge combinations are also engineered and manufactured by BHELIn all, orders for more than 880 utility sets of thermal, hydro, gas and nuclear have been placed on the company as on date. The power plant equipment manufactured by BHEL is based on contemporary technology comparable with the best in the world, and is also internationally competitive

2. Industries

BHEL manufactures and supplies major capital equipment and system like captive power plant, centrifugal compressor, drive turbines, industrial boilers and auxiliaries etc. BHEL has also emerged as a major supplier of controls and instrumentation systems, especially distributed digital control systems for various power plants and industries.3. Transportation

Most of the trains on Indian Railways, whether electric or diesel powered are equipped with BHELs traction propulsion system and controls. Indias first underground metro at Kolkata runs on drives and controls supplied by BHEL. Almost all the EMUs in service are with electrics manufactured and supplied by BHEL. BHEL has also diversified into the area of track maintenance machines for Indian Railways.

4. Renewable Energy

BHEL has been manufacturing and supplying a range of Renewable Energy systems and products. It includes Solar Energy systems namely, PV modules, PV power plants, solar lanterns, solar pumps etc.

5. Oil and Gas

BHEL is supplying onshore drilling rigs equipment viz. draw works, rotary table, traveling block, swivel, mast and sub structure, mud systems and rig electrics and Xmas tree valves

6. Transmission

BHEL supplies a wide range of products and systems for transmission and distribution application. The products manufactured by BHEL include power transformers, instrument transformers, dry type transformers etc. ACTIVITY PROFILE

Power Generation and Transmission Steam Turbines-Generator sets and Auxiliaries Boilers and Boilers Auxiliaries Nuclear Power Generation Equipments Hydro Turbines-Generator Sets & Auxiliaries Gas Turbines-Generator Sets Heat Exchangers Condensers Bag Filters Valves Pumps Electrical Machines Power, Distribution and Instrument Transformers Reactors Porcelain

Industries/Transportation/Oil & Gas /Renewable Energy

Steam Turbine-Generators Sets Gas Turbine-generators Sets Diesel Engine-Based Generators Drives Turbines Marine Turbines Industrial Heat Exchangers Industrial Valves Industrial Fans Capacitors Broad Gauge AC, AC/DC Locomotives Diesel-Electric Shunting Locomotives Traction Motors & Control Equipment Electric Trolley Buses Battery operated Passenger Vans

Systems and Services

Turnkey Utility Power Station/EPC contracts Captive Power Plant Consultancy Services Construction Services Software packages for Utilities

BHEL IN INDIA

Power Sector

REGIONAL OFFICES (POWER SECTOR): 1. NEW DELHI (NORTHERN REGION)2. CALCUTTA(EASTHREN REGION) 3. NAGPUR (WESTHREN REGION)4. MADRAS (SOUTHREN REGION)

Industry Sector

MANUFACTURING UNITS:-1. BANGALORE2. BHOPAL3. HARIDWAR4. HYDRABAD5. JHANSI6. RANIPET7. RUDRAPUR8. TIRUCHIRAPALLI

MAJOR COMPETITORS OF BHEL1. ELECTRO CONSULT ITALY2. ABB SWITZERLAND3. BEEHTEL USA4. BLOCK & NEATCH USA5. GENERAL ELECTRIC USA6. RAYTHEON USA7. WESTINGHOUSE USA8. CNMI & EC CHINA9. SANGHAI ELECTRIC CO UK10.GEC-ALSTHOM UK

CONTRIBUTION TO POWER SECTOR

Today the power sector plays a very important role in building any Nation. It helps the country to develop its economy and the life style of society. BHEL contributes 79% of the national power generation. In which 44% contribution is made only by BHEL Hardwar, 35% contribution is made by BHEL other than Hardwar unit and rest 21 % contribution made by other companies.

TOTAL QUALITY FOCUS:

To face the increased competition from MNCs (due to liberalization policy of Government) in early 90s and to enter European market we moved towards ISO 9000 Certification. Concept of Business Excellence through EFQM Model was launched in entire BHEL on pilot scale in Oct.1995 In 1997 HEEP launched TQM in the entire Plant and since then Self-Assessment is done every year in September. Based on feedback Report of Assessment, critical success factors are identified. and TQ action plans are drawn. The philosophy of ISO 9001, TQM and ISO 14001 has been integrated BHEL Hardwar for ultimately achieving BUSINESS EXCELLENCE. HEEP Hardwar plant is accredited for ISO 9001 and ISO 14001 and is now on March towards TQM.5-S was launched in March 1999 in a big way and now it has become a way of life in the organisation. In 2000 HEEP applied for CII-EXIM Business excellence award and site visit was conducted Bu CII team in Sept.2000.Cii feedback has gone a log way in carrying out further improvement plans and giving a structured thrust to TQM movement

In July 2001, Units TQ Council reviewed the TQ Action Plans 2001-02 for its effectiveness and impact on accelerating the pace of improvement and consequent TQ Score. Executive Director laid the challenge of achieving the TQ score of 650.With an objective to bring awareness about the CII-EXIM Business Excellence Model amongst the Sr. Executives, the first Top Management TQM Workshops held at Rishikesh during oct.2001Executive Director who is TQ Assessor also, himself steered the Workshop with assistance from some experienced TQ Assessor of HEEP. It followed by second Top Management TQM Workshop steered again by Ed was held at HRDC on Oct29,2001.Subsequantly the third Top Management TQM Workshop was held in Nov2001,where-in Sr. Counselor, CII deliberate the detail on Best practices of TATA STEEL-the winner of CII-EXIM Business Excellence Award 2000.Simultaneously ,TQ Assessors training program for the select group of young managers(to be developed as Think Tanks)was organized in Nov2001.To give further boost Apex Group was formed. Apex Group developed Roadmap to Business Excellence based on Criteria Linkage of CII-EXIM Business Model and the initiatives taken at Hardwar was drawn by the group and it was widely circulated amongst the employees through special issue of Hardwar Current in April 2002.It followed by JBE workshop of Apex TQM Group held at Tehri on June 30 and July 1, 02 where-in following business policy and critical factors was evolved.

BUSINESS POLICY:In-line with Companys Vision, Mission and values, we dedicate ourselves to sustained growth with increasing positive Economic Value Addition and Customer focused business leadership in the Power and Industry Sector.

BHEL AT HARIDWAR

HEAVY ELECTRICAL EQUIPMENT PLANT, HARIDWAR:

Heavy Electrical Equipment Plant, Hardwar of this Multi-unit corporation with its 7467 strong highly skilled technicians, engineers, specialists and professional experts is the symbol of Indo Soviet and Indo German Collaboration. It is one of the four major manufacturing units of the BHEL. With turnover of 1088 Crores and PBT of Rs.68 Crores, HEEP added 3000 MW of power to the National grid during 2001-02. HEEP is engaged in the manufacture of Thermal and Nuclear Sets up to 1000MW, Hydro Sets up to HT Runner dia 6300mm, associated Apparatus Control gears, AC& DC Electrical machines and large size Gas Turbine of 60-200 MW. HEEP Hardwar contributes about 44% of Indias total installed capacity for power generation with total capacity of Thermal, Nuclear & Hydro Sets of over 45000MW currently working at a Plant Load Factor of 76% and Operational Availability of 86%. Inspite of acute recession in economy, BHEL Hardwar bagged recent orders worth 1500 Crores including repeat orders for Suratgarh-5, Kota-6, Raichur-7, Rihand-3&4 and Ramagundam-7 Unit. Additionally, Mejia-4, Panipat-7&8, Maithon and Bhatinda are in pipeline. CENTRAL FOUNDRY FORGE PLANT (CFFP) HARIDWARThe Central Foundry Forge Plant was set up at Hardwar with French collaboration. The construction started in 1974 and production was commenced in 1976.This plant has in-built high degree of sophistication normally associated with much larger plants and has successfully developed various intricate castings and forgings which were imported earlier.CFFP has successfully manufactured various types of steels, e.g., creep resistant steels, heat resistant steels, stainless steels, armor steels etc. per Indian and International standards.CFFP has been supplying sophisticated castings used in power sector e.g., steam turbine castings, turbo generator press rings, hydro turbine Kaplan blades and Francis runners, compressor castings etc. The castings have also been manufactured for Defense, Nuclear, Chemical and steel sectors.Critical Forgings manufactured by CFFP include: HP, IP and LP rotors and discs etc., from steam turbines, shafts, pole and plates, rotor bush, thrust collars etc., for hydro sets and jackets and discharge cover for pumps besides various types of critical forgings for defense, nuclear, steel, cement and machine building industries. CFFP is further upgrading and augmenting its facilities in the high growth and high technical areas.Most of the castings and forgings produced by CFFP are of import substitution nature. CFFP has also exported motor frame and steam turbine castings and forgings to CIS and Germany. CFFP has also won the National award for import substitution. It has been recognized as a well known steel maker-Foundry and Forge Master by Indian Boiler Board. The American Bureau of Shipping has also approved CFFP for the manufacture of castings and forgings for ship building industry.

Objective of the study:

My main objective is to know about existing performance appraisal system in BHEL. Know the practical implications of appraisal. To know about different phrases of Performance Appraisal. To check whether employees are satisfied with this system. To know the reason of distortion of the appraisal system among them and their opinion on it.

SYSTEM OF BHEL OF PERFORMANCE APPRAISALIn BHEL performance appraisal is done annually. The main objective for which this system is designed is that it is meant for further improvements, development and advancement of performance so as to achieve organizations objectives as well as overall development of employees

Process of performance appraisal in BHELAt first the assessment form is designed by the personnel department specialist and is approved by unit head.Then the personnel department specialist sends these assessment forms to the respective department heads of the organizations.After these respective departments heads assess the performance of their employees on the basis of the points given in the form.After that remark are given by the department heads the next step is to give recommendations were given by personnel department specialists Finally this assessment forms is sent to the unit head for further evaluation and recommendations.BHEL uses graphic rating scale methods to evaluate the performance of employees and this form are circulated 4 times in a year after every period of 3 months so at last the total of 4 forms is considered for the evaluations.

Bharat Heavy Electronics Ltd., HaridwarPERFORMANCE/COMPETENCY EVALUATION REPORTPERIOD OF REVIEW YEAR 2012-2013

NAME OF EMPLOYEE:DEPT.: DESIGNATION:DATE OF JOINING:QUALIFICATION: TOTAL EXPERIENCE:ASSESSMENT CONDUCTED BY:APPOINTMENT DETAILS: CONFIRMEDPERFORMANCE COMPETENCY REPORT:DESCREPTIONMARK RATED (%)MARKS OBTAINED %REMARKS

1JOB KNOWLEDGE30

2GENERAL INTELLIGENCE10

3ATTITUDE TO WORK10

4REGULARITY & PUNCTUALITY5

5BEHAVIOUR & CONDUCT5

6WORK EFFICIENCY10

7ADHERENCE TO INSTRUCTION10

8INITIATIVE10

9KNOWLEDGE OF ISO 9001 : 20085

10KNOWLEDGE OF QUALITY POLICY & ITS OBJECTIVE5

11OVERALL MARKS/ RATING OUT OF100

ANY SPECIFIC ACHIEVEMENT DURING LAST ONE YEAR PLEASE EVALUATE AND SPECIFY WHETHER HIS PERFORMANCE/COMPETENCY LEVEL HAS IMPROVED AFTER IMPARTING TRAININGPERSONNEL DEPARTMENT VIEW AND FURTHER ACTION, IF ANYHEAD OF DEPARTMENT UNIT HEAD

CHAPTER 3.RESEARCHMETHODOLOGY

3.1 RESEARCH METHODOLOGY

Research can be defined as a systematic and objective process of gathering, recording and analyzing data to guide decision making. It is mainly used to reduce the uncertainty of decision. The key objective of any research is to obtain accurate, relevant and timely information.

3.2Research Design

Research design can be defined as the plan and structure of inquiry, formulated in order to obtain answer to research question on business aspect. It constitutes the overall program of the business research process. It can be understood as that which gives the blueprint o for collection and measurements and analysis of business data. It helps researchers to utilize available resources efficiently to achieve research objectives. It outlines the actual research problems on hand and details the process for solving it. It clearly describes the techniques to be used for selecting sample, collecting data managing costs and other aspects that are essentials for conducting business research. Decisions are taking depending on certain crucial issues like the study purpose and objective the type of data needed the method adopted for obtaining the data and analyzing it.

Research design is essential because it facilitate the smooth flow of various research processes. An ideal research design is to be developed, if available resources such as time, manpower and money are considered before beginning the design. The validity of research results is based on the initial research design. If it is not properly prepared it will jeopardize the whole research process and will not meet its purpose. The research design had to be developing very carefully, as it forms the foundation of the entire research process that follows. Some important characteristics of a good research design are flexibility adaptability, efficiency, begin economic and so on. An ideal design should take in to account important factors like Identifying the exact research problem to be studied.

The objective of the research

The process of obtaining information

The availability of adequate and skilled manpower.

The availability of adequate financial resources for carrying out research.The research should be designed so that it adapts well to the type of research to be carried out. For instance in the case of exploratory research, which is usually carried out for discovering ideas for further research, the research design should be flexible enough to consider different aspect of the problem situation.For research regarding testing of hypothesis for measuring casual relationships between variables the research design should allow for influences about causality along with minimizing bias and maximizing reliability. These are some important characteristics of good research design.

Research plan: Interviewing the prospective managers and employees. Analysis of data according to the information collected.

Sample Size:Sample Size is: 50Successful Survey: 50Sample targets are H.R Managers and Employees.Sampling Area: Within BHEL Ltd.

CHAPTER 4.DATA ANALYSIS

DATA ANALYSIS AND INTERPRETATION1. Your Performance is appraised as-

SI.NO.DescriptionNo. of RespondentsPercentage

1Individually 4075%

2In team 10 15%

3Both - 10%

Total 50 100

Interpretation:The analysis reveals that maximum no of employees performance is appraised individually and about 15% of respondents performance is apprised in team.

2. Your performance is appraised by:

SI. NO. DescriptionNo. of Respondents Percentage

1Manager 42 84%

2Personnel Deptt. Specialist -0%

3High level Manger 8 16%

Total 50 100

Interpretation:This answer shows that 84% of respondents performance is apprised by managers while 16% of respondents performance is apprised by high level managers.

3. The system of appraisal provides the real measurement of the performance of the employee.

SI. No. DescriptionNo. of Respondents Percentage

1Correct 37 74

2Partially Correct 10 20

3Incorrect 3 6

Total 50 100

Interpretation: The analysis shows that maximum numbers of employees thinks that appraisal provides real measurement of performance while 20% think that it provides partial measurement.

4. Appraisal system shows any scope of Improvement in ones performance.

SI. No. DescriptionNo. of Respondents Percentage

1Agreed 32 64

2Partially agreed 10 20

3Disagreed 8 16

Total 50 100

Interpretation: The analysis reveals that 64% of respondents are of the opinion that performance appraisal shows scope of improvement in ones performance while 20% of them are partially agreed and 16% of them think it does not help.

5. Performance appraisal helps you in.

SI. No. DescriptionNo. of Respondents Percentage

1Promotion 39 78

2Career planning 7 14

3Goal achievement 4 8

Total 50 100

Interpretation:The analysis implies that 78% of respondents think that it helps in promotion, 14% of them think that it helps in career planning and 8% of them think that it helps in goal achievement.

6. Appraisal system helps you to know your progress in achieving the set targets. SI. No. DescriptionNo. of Respondents Percentage

1True 42 84

2Partially True 8 16

3False - -

Total 50 100

Interpretation:This analysis indicates that maximum no. of employees think that appraisal system helps in achieving the set targets and 16% respondents think that this system is not much helpful in achieving the set targets.

7. To what extent you are satisfied with the existing performance appraisal system.

SI. No. DescriptionNo. of Respondents Percentage

1To a great extent 35 70

2To a little extent 5 10

3To some extent 10 20

Total 50 100

Interpretation:This analysis implies that 70% of respondents are satisfied with the existing performance appraisal to a great extent, 10% of them are satisfied to a little extend and 20% of them are satisfied to some extent.

8. Time spent on your feedback.

SI. No. DescriptionNo. of Respondents Percentage

130 min 10 20

260 min 40 80

3More than 60 min - -

Total 50 100

Interpretation :The above table and pie chart reveals that almost 80% employees in the sample indicated that organization give almost one hour to take their appraisal. However it is significant to note that 20% employees feels that they get less than half an hour to be appraised.

9. Is the performance appraisal system is transparent.

SI. No. DescriptionNo. of Respondents Percentage

1yes 46 92

2No 4 8

Total 50 100

Interpretation:The analysis shows that 92% of respondents think that performance appraisal system is transparent and 8% of them think that the system is not transparent.

10. Do you feel that rewards are given according to your performance?

SI. No. DescriptionNo. of Respondents Percentage

1Yes 36 72

2No 14 28

Total 50 100

Interpretation:As per the analysis 72% of respondents think that rewards are given according to their performance while 28% of them think that rewards are not given to them according to their performance.

11. Is honest feedback given to you?

SI. No. DescriptionNo. of Respondents Percentage

1Yes 41 82

2No 9 18

3False -

Total 50 100

Interpretation:This analysis shows that majority of employees said that honest feedback is given to them and 18% of them say that feedback given to them is not honest.

CHAPTER 5

FINDINGS & RECOMMENDATIONS FROM THE PROJECT

FINDINGS

Through the research conducted by me, I found that many of the employees are satisfied with the existing PERFORMANCE APPRAISAL SYSTEM but now management feels that there is a need to change the system from performance management system according to the changing needs of the most of the organization.

Through the existing performance appraisal of BHEL is very successful but they want that kind of environment in the organization in which there is a clear communication between the appraisal and the appraise.

The existing PERFORMANCE APPRAISAL SYSTEM OF BHEL only focuses upon performance appraisal and generation of rating. So they want to adopt performance management system in which focus is on performance management.

They want to adopt PERFORMANCE APPRAISAL SYSTEM because in its emphasis is on performance improvement of individuals, teams, organization and in the performance appraisal system emphasis is on the relevant evaluation of individuals.

Another reason to adopt PERFORMANCE APPRAISAL SYSTEM is that performance rewarding may or may not be an integral part. Defining and setting performance standards is an integral part.

RECOMMENDATIONS

PERFORMANCE APPRAISAL SYSTEM should be based on target setting and preference should be measured on the basis of target achieved. The PERFORMANCE APPRAISAL SYSTEM is parameter based which sometimes are not quantifiable so they should adopt PERFORMANCE APPRAISAL SYSTEM.

PERFORMANCE APPRAISAL SYSTEM should only reward performance so that it would be less controversial of BHEL the performance has been linked to earning of increment.

The PERFORMANCE APPRAISAL SYSTEM does not take care about the placements. The placements of employees should be linked with their performance.

The present system also does not take care about the training of employees. The training of employees should be linked with their performance and potential.

CHAPTER 6

CONCLUSION

Conclusion

After the critical analysis of performance appraisal system of BHEL the PERFORMANCE APPRAISAL SYSTEM should based on target setting and performance should be measured on the basis of target achieved. The performance appraisal should only reward performance so that it would be less controversial so top performers would be benefited. The topic of the study undertaken by me is relative so it took lot of time to understand the system. The support and encouragement of BHEL executives made the job easy. I recorded the response with the help of questionnaire.The basic idea designing the new system in the organization is that the individual achieve higher level of performance in the existing role and to provide on the job knowledge, positive attitude and skill based training in the organization. Moreover it creates a climate professionalism and prepares the psychologically not only to face the challenges but also to excel.The system to be evaluated should be reviewed periodically so as to ensure that training provided and carried out must go along with the latest technology. Limit for the improvement of the system is sky-high therefore suggestions are always welcome.

LIMITATIONS

People are afraid of filling the questionnaire. It might be possible that earlier they have not undergone this process.

Organization is reluctant to provide some data. Which are confidential so it is very difficult to analyze these data.

Most of the people doesnt want to answer the question properly

Time is given to conduct the study was short.

The sample may not be the exact representative of the universe.

CHAPTER 7

BIBLIOGRAPHY

BIBLIOGRAPHY

Personal management and Industrial relation, Prof. P.C.TRIPATHI

Research Methodology, C.R.KOTHARI.

Human Resource Management, L.M.PRASAD

WEBSITES-www.bhellndia.comwww.google.com

CHAPTER8.

ANNEXURE

QUESTIONNAIRE The basic objective of Performance Appraisal?A. FullyB. Partial C. No

Your performance is appraised as-A. IndividuallyB. In TeamC. Both

Your performance is appraised by- A. Manager B. Personnel Deptt. Specialist C. High Level Manager

The system of appraisal provides the real measurement of the performance of the employee. A. Correct B. Partially Correct C. Incorrect

Appraisal system shows any scope of improvement in ones performance. A. Agreed B. Partially agreed C. Disagreed Performance appraisal helps you in. A. Promotion B. Career planning C. Goal Achievement

Appraisal system helps you to know your progress in achieving the set targets. A. True B. Partially True C. False

To what extent you are satisfied with performance appraisal System. A. To a great extent B. To a little extent C. To some extent

Time spent on your feedback. A. 30 min B. 60 min. C. More than 60 min.

Is the performance appraisal system is transparent. A. Yes B. No Do you feel that rewards are given according to your Performance? A. Yes. B . No

Is honest feedback given to you? A. Yes. B. No C. False

If any development is required after performance appraisal then proper training is given to you? A. Yes. B. No. Do you think performance appraisal is necessary in the Organization? A. Yes. B. No.

Performance is appraised byThe system of appraisal provides the real measurement of the employeeAppraisal system shows any scope of improvement in ones performance Performance appraisal helps you inAppraisal system helps you to know your progress in achieving the set targetsTo what extent you are satisfied with the existing performance appraisal systemPerformance appraisal system is transparentRewards are given according to your performance Honest feedback given to you