hr project report final

7/28/2019 hr project report final

1/81

A

PROJECT REPORT

ON

A STUDY OF

PERFORMANCE APPRAISAL SYSTEM

OF

HINDUSTAN AERONAUTICS LIMITED

AIRCRAFT DIVISION, NASIK

SUBMITTED TO

UNIVERSITY OF PUNE

BY

S.R.MOUSIMI NAIDU

MBA II

(2012-2013)

METs BHUJBAL KNOWLWDGE CITY INSTITUTE OF MANAGEMENT,

NASHIK, MAHARASHTRA, INDIA - 422003


2/81

ACKNOWLEDGEMENT

No project of this kind can be possible without the help and significant dialogue with a large

number of managers and faculty members.

I am grateful to my research guide, Prof. ZAFAR KHAN for his guidance throughout the

project.

I am grateful to Mr.Dilip Sarote, (Chief manager-HR) for his valuable guidance throughout

the project.

I am grateful thank Mr. Shankar Narayan, (Dy.General Manager-Training & Development

Institute) for his valuable guidance throughout the project.

Several thoughtful managers gave me their perspective and generous support. I would like to

place on record my sincere gratitude to Smt.Manisha Vaidya, (Sr. Manager-HR), I got

benefited from interaction with all the managers and I would like to thank them all from my

bottom of my heart for their help and support.

Finally, a note of appreciation to every person who has played a part in the successful

completion of the project .

MOUSIMI NAIDU


3/81

DECLARATION

I hereby declare that the information, Photographs, Data etc. gathered during the training period (project period) shall be strictly utilized only for the purpose of Project Report work.

This Project report is a part of the partial fulfillment of Degree in Master of Business

Administration (MBA II) at MET INSTITUTE OF MANAGEMENT for the Session: 2012-

13 under University of Pune.

I honestly state that the intention of collection of the information in my project

report is solely for the purpose of academic study, not for commercial purpose or any means.

My sole and sincere motive is to learn the procedure practically and express my views by

preparing Project Report.

Thus the sole and honest objective for collecting the information is only for

the academic purpose and I assure that collected information will be restricted only for

Project Report.

MOUSIMI NAIDU


4/81

PREFACE

Managing human resources in todays dynamic environment is becoming more and more

complex as well as important. Recognition of people as a valuable resource in theorganization has led to increased trends in employee maintenance, job security, etc.

This research project deals with A Study Of Performance Appraisal System carried out

At Hindustan Aeronautics Ltd., Ojhar, Nasik. In this report, the effectiveness of

performance appraisal system as it is carried out in the company has been studied &

evaluated.

The first section of the report deals with a detailed company profile. It includes the

companys history: its activities and operations, organizational structure, etc. This section

attempts to give detailed information about the company and the nature of its functioning.

The second section deals with the concept of performance appraisal. This section provides a

brief conceptual explanation to performance appraisal. It contains the definition, process and

significance of performance appraisal.

In the third section, the research study conducted to evaluate the process of performance

appraisal at Hindustan Aeronautics Ltd., Ojhar, Nasik has been included. This section also

contains the researchers findings, conclusions, suggestions and feedback.

The fourth and final section of this report consists of extra information that is related to the

main contents of the report. These annexure include some graphs and diagrams relating to the

company, graphs relating to the research study and important documents upon which the

project is based.


5/81

INDEX

Sr.No. Particular Title Page

Certificate of the InstituteCertificate of The OrganizationAcknowledgementIndex List of TableList of GraphsPreface

1 Chapter 1 : Introduction of the Subject2 Chapter 2 : Profile of the Organization3 Chapter 3: Research Methodology

Objective of Project,

Research Methodology,

Scope & Limitation of Project

4 Chapter 4 :Data Presentation & Data Collection5 Chapter 5: Data Analysis and Interpretation6 Chapter 6: Findings & Conclusion

Appendices :a. Questionnaire

b. Glossary of Termsc. Bibliography/References


6/81


7/81

1.1 PERFORMANCE APPRAISAL

Introduction:

Differentiation has taken new dimensions in the realm of business. The very

term spells the extent of success of the organization. It is what the organization possesses as

different from the competition and how these recourses are utilized that determines how fast

and far the organization moves. This differences factor is the Human capital of the

company. The human capital is, arguably, the differentiating factor of any organization

because all other resource can be replicated by other organization. But human resource is an

organizations greatest asset because talent through replicable, takes time to master. And it

is this first movers advantage that companies take advantage of. People are our most

valuable asset is a clich, which no member of any senior management team would disagree

with. Yet, the reality for many organizations is that their people remain undervalued, under

trained and underutilized.

Of all the factors of production, the Human resource forms the crux of the

organization-conceiving ideas and giving them shape and life. This factor is of paramount

importance because of its innate ability to produce further resources of infinite value, by its

abilities. Unlike other resources the human resources, blessed with emotions of satisfaction,

gratitude, resentment etc., is unpredictable in behavior. It therefore becomes necessary to

provide a congenial work environment and other resources, which facilitate performance, the

core of these being the compensation and benefits accorded to him, which provides him a

sense of security and satisfaction.

Performance Appraisal is the process of assessing the performance and progress of an

employee or a group of employees on a given job and his/ their potential for future

development. It consists of a formal procedure to evaluate personalities, contributions and

potentials of employees. It helps the organization in deciding an employees promotion,

transfer, incentives, and pay increase.


8/81

Literature Survey

The value of effective performance appraisal systems, and in particular

360 Degree Feedback, to the overall well-being of all organizations is

being realized more and more by business leaders.

Multinationals like IBM, HP, L&T, Caterpillar, ABB etc. and Indian companies like

Infosys, Wipro, TCS are also following the same trend and they are aligning themselves with

the latest as well as effective method of performance appraisal which promises to whip out

the biases in the appraisal system if implemented properly and also promises to build a

knowledge based work culture that will work unperturbed even if the crucial member/key

players of the company resigns. This method approaches to build up a work environment that

shifts its focus from individual development to team development. Employees are encouragedto become good team members not to become charismatic leaders.

A classic example of this lies in the fact when the CEO of hp Ms. Flourentina

resigned the work culture or the business of the company was not hampered in the slightest

fashion. The work flow was smooth and in the ground level officers were not bothered. Back

in India when Infosys Mentor Mr. Murthy decided to resign there was no uproar in the IT

giant of India and now the company currently runs smoothly under the able leadership of Mr. Nilkeni.

Thus this system provides a unique platform for building up of the employees from the very

day they walk in the premises of the company.

Currently our very own HAL is undertaking efforts to implement Lean Initiative across all

the divisions. So the same system would eventually also prevail in our company too and thus

making the path to take India a step ahead in the business of aviation.

Certainly the hopes are high one day the HAL employees also held up their head high and

proudly announce that I am from HAL; like the way the Japanese does by declaring they

are from Toyota or Mitsubishi. A culture, where not the state, to which the person belongs, is

not the thing to take pride in but the company for which he/she is working.


9/81

So in order to understand this culture we started to look at various websites offering insights

about the 360 degree performance appraisal system and found a lot and

started to realize that a new culture is emerging that may eventually

replace the existing system of performance appraisal. In order to get the

feel of the same we started researching and Google helped in a big way.

The list of the websites, which we surfed and which gave us a lot of inputs are given in the annexure.

Definition:

According to Prof. E.B.Flippo Performance Appraisal defined by, It is a

systematic, periodic and so far as humanity possible, an impartial rating of an employee s

excellence in matters pertaining to his present job and to his potentials for a better job.

Performance Appraisal is the periodic and systematic assessment of the

Employees in terms of the performance,aptitude,capabilities and other qualities which

are necessary.It is a systematic effort on the part of management and has a linkage with

induction,selection,training and provides data to determine promotions,transfers,e.t.c.

CHARACTERISTICS

Performance Appraisal is a process.

It is the systematic examination of the strengths and weakness of an employee

in terms of his job.

It is scientific and objective study. Formal procedures are used in the study.

It is an ongoing and continuous process wherein the evaluations are arranged

periodically according to a definite plan.

The main purpose of Performance Appraisal is to secure information

necessary for making objective and correct decision an employee

PROCESS

The process of performance appraisal involves:

Establishing performance standards

Communicating the Standards

Measuring Performance

Comparing the actual with the standards


10/81

Discussing the appraisal

Decision making

1. ESTABLISHING PERFORMANCE STANDARDS

The first step in the process of performance appraisal is the settingup 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

judge the performance of the employees as successful or unsuccessful and

the degrees of their contribution to the organizational goal and objectives. The standards set

should be clear, easily understandable and in measurable terms. In case the performance of

the employee cannot be measured, great care should be taken to describe the standards.

2. COMMUNICATING THE STANDARDS

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 clearly 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 and if required, the standards can also be modified at this stageitself according to the relevant feedback from the employees or the evaluators.

3. MEASURING THE 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

period of time. It is a continuous process, which involves monitoring the performance

throughout the year. This stage requires the careful selection of the appropriate techniques of

measurement, taking care that personal bias does not affect the outcome of the process and

providing assistance rather than interfering in an employees work.

4. COMPARING THE ACTUAL WITH THE DESIRED PERFORMANCE

The actual performance is compared with the desired or the standard performance.

The comparison tells the deviations in the performance of the employees from the standards


11/81

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. This process is very important.

5. DISCUSSING 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 results, the

problems and the possible solutions are discussed with the aim of problem solving and

reaching consensus. The feedback should be given with a positive attitude as this can have an

effect on the employees future performance. The purpose of the meeting should be to solve

the problems faced and motivate the employees to perform better.

6. 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.

GOAL OF THE PERFORMANCE APPRAISAL SYSTEM:

Job relatedness

Highlighting the critical areas instrumental for job success

Clear understanding by Appraiser & Appraisee

Confronting to per-decided standards

Identifying and Utilizing Dependable Measures

LIMITATIONS

Errors in Rating

Lack of reliability

Negative approach

Multiple objectives


12/81

Lack of knowledge

METHODS OF PERFORMANCE APPRAISAL

The foregoing list of major program pitfalls represents a formidable challenge, even

considering the available battery of appraisal techniques. But attempting to avoid these

pitfalls by doing away with appraisals themselves is like trying to solve the problems of life

by committing suicide. The more logical task is to identify those appraisal practices that are

(a) most likely to achieve a particular objective and

(b) least vulnerable to the obstacles already discussed.

FEATURES OF PERFORMANCE APPRAISAL:-

Performance Appraisal is not only a technique or method but also is a

systematic and continuous Process.

In Performance Appraisal, periodic and systematic assessment of employees

performance is done.

This technique is used by the management to make fair and impartial analysis

of the value of employees.

In the process of performance appraisal, efforts are made to bring an

uniformity while appraising the job performance of the employees working in

an organization.

With out assessing the performance of employees the organization can not identify its most

potential human resources. The employees can be rewarded for the achievement of goals

only by using this function of performance appraisal. The employees in the organization

who are under performing can also be improved by using performance appraisal. That is

why the study on performance appraisal is selected for conducting research.


13/81

PURPOSE OF PERFORMANCE APPRAISAL :

To evaluate an employee according to some standards.

Find out the strength and weakness inside the employee.

To provide training or reward according the appraisal.

For continuous improvement, mentoring so that increased total output of an

employee.

FIG.: METHODS OF PERFORMANCE APPRAISAL

Essay Appraisal

Field Review ManagementBy Objectives

Forced-Choice Rating Assessment

Graphic Rating Scale centre

Ranking Methods 360 appraisalsystem

M ETHODS OF P ERFORMANCE APPRAISAL

Traditional Methods Modern Methods


14/81

Traditional Methods:

(i) Essay 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.

(ii) 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.

(iii) Forced - Choice rating

Like the field review, this technique was developed to reduce bias and establish

objective standards of comparison between individuals, but it does not involve the

intervention of a third party

.

(iv) Graphic Rating Scale:

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.

(v) Ranking methods

For comparative purposes, particularly when it is necessary to compare people who

work for different supervisors, individual statements, ratings, or appraisal forms are not

particularly useful. Instead, it is necessary to recognize that comparisons involve an overall

subjective judgment to which a host of additional facts and impressions must somehow be

added. There is no single form or way to do this.


15/81

The best approach appears to be a ranking technique involving pooled judgment.

The two most effective methods are alternation ranking and paired comparison ranking.

1. Alternation ranking:

Ranking of employees from best to worst on a trait or traits is

another method for evaluating employees. Since it is usually easier to distinguish between theworst and the best employees than to rank them, an alternation ranking method is most

popular. Here subordinates to be rated are listed and the names of those not well enough to

rank are crossed. Then on a form as, the employee who is highest on the characteristic being

measured and the one who is the lowest are indicated. Then chose the next highest and the

next lowest, alternating between highest and lowest until all the employees to be rated have

been ranked.

2. Paired -comparison ranking:

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. Both ranking techniques, particularly when combined with

multiple rankings (i.e., when two or more people are asked to make independent rankings of

the same work group and their lists are averaged), are among the best available for generating

valid order-of-merit rankings for salary administration purposes.

Modern Methods:

(i) Management by objectives

To avoid, or to deal with the feeling that they are being judged by unfairly high

standards, employees in some organizations are being asked to set - or help set - their own

performance goals. Within the past five or six years, MBO has become something of a fad

and is so familiar to most managers.


16/81

(ii) Assessment centers

In any placement decision and even in promotion decisions, some prediction of future

performance is necessary. Assessment Center involves a battery of tests facilitating the

wholesome evaluation of an individual. It is a multi-rater system in which multiple assessors

evaluate an individual based on various tests. At the end of the tests, the assessors discuss

amongst themselves the performance of the individual and arrive at a consensus as his

potential.

(iii) 360 o Feedback

Many firms have expanded the idea of upward feedback into what is called the 360-

degree feedback. The feedback is generally used for training and development, rather than for

pay increases. Most 360 Degree Feedback systems contain several common features.

Appropriate parties i.e. peers, supervisors, subordinates and customers, for instance

complete survey, questionnaires on an individual. 360 degree feedback is also known as the

multi-rater feedback, whereby ratings are not given just by the immediate manager up in the

organizational hierarchy, but also by peers and subordinates. Appropriates customer ratings 6

are also included along with the element of self-appraisal. Once gathered in, the assessment

from the various quarters are compared with one another and the results communicated to the

manager

DefineOrganizational

goals

DefineDepartmental

goals

DefineEmployee

Objective goals

Definr ExpectedResult

ContinuousMonitoring

ProvideFeedback

Performanceappraisal


17/81

Another technique that is useful for coaching purposes is, of course, MBO. Like the critical

incident method, it focuses on actual behavior and actual results, which can be discussed

objectively and constructively, with little or no need for a supervisor to "play God."

Benefits of Performance Appraisals

1. Measures an employees performance.

2. Helps in clarifying, defining, redefining priorities and objectives.

3. Motivates the employee through achievement and feedback.

4. Facilitates assessment and agreement of training needs.5. Helps in identification of personal strengths and weaknesses.

6. Plays an important role in Personal career and succession planning.

7. Clarifies team roles and facilitates team building.

8. Plays major role in organizational training needs assessment and analysis.

9. Improves understanding and relationship between the employee and the reporting

manager and also helps in resolving confusions and misunderstandings.

10. Plays an important tool for communicating th e organizations philosophies, values,

aims, strategies, priorities, etc among its employees.

Internalcustomer

Subordinate

Self

Peer

Externalcustomer

Fig.1. Concept of 360-degree performance appraisal

Superior


18/81

11. Helps in counseling and feedback.

Rating Errors in Performance Appraisals:

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

unfavorably 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 rate.

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


19/81

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 favoritism, 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 behaviors; sex, age, race and friendship biases are

examples of this type of error.

Primacy and Regency effects:

The rater's rating is heavily influenced either by behavior exhibited by the ratee during

his early stage of the review period (primacy) or by the outcomes, or behavior 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.

Spillover effect: -

This refers to allow past performance appraisal rating to unjustifiably influence current

ratings. Past ratings, good or bad, result in similar rating for current period although the

demonstrated behavior does not deserve the rating, good or bad.


20/81

Sukoi-30 MK1


21/81

HAL GLIMPSES:

FOUNDER:

Late seth Walchand Hirachand

CHAIRMAN:

Shri R.K Tyagi

MANAGING DIRECTOR:

Shri P V Deshmukh

HR EXECUTIVE DIRECTOR:

Shri. T Sudhakar Rao


22/81

OUR MISSION

To become a globally competitive aerospace industry while working

as an instrument for achieving self-reliance in design, manufacture and maintenance of

aerospace defence equipment and diversifying to related areas, managing the business on

commercial lines in a climate of growing professional competence ".

OUR VALUES

CUSTOMER SATISFACTION

We are dedicated to building a relationship with our customers where we

become partners in fulfilling their mission. We strive to understand our

customers ' needs and to deliver products and services that fulfill and exceed all

their requirements.

COMMITMENT TO TOTAL QUALITY

We are committed to continuous improvement of all our activities. We will

supply products and services that conform to highest standards of design,

manufacture, reliability, maintainability and fitness for use as desired by our customers.

COST AND TIME CONSCIOUSNESS

We believe that our success depends on our ability to continually reduce the

cost and shorten the delivery period of our products and services. We will

achieve this by eliminating waste in all activities and continuously improving

all processes in every area of our work.

INNOVATION AND CREATIVITY

We believe in striving for improvement in every activity involved in our

business by pursuing and encouraging risk-taking, experimentation and learning

at all levels within the company with a view to achieving excellence and

competitiveness


23/81

TRUST AND TEAM SPIRIT

We believe in achieving harmony in work life through

mutual trust, transparency, co-operation, and a sense of

belonging. We will strive for building empowered teams to work towards

achieving organisational goals

RESPECT FOR THE INDIVIDUAL

We value our people. We will treat each other with dignity and respect and

strive for individual growth and realisation of everyone's full potential.

INTEGRITY:

We believe in a commitment to be honest, trustworthy and fair in all our

dealings. We commit to be loyal and devoted to our organisation. We will

practise self discipline and own responsibility for our actions. We will comply

with all requirements so as to ensure that our organisation is always worthy of

trust.

HISTORY OF THE COMPANY

Hindustan Aeronautics Limited (HAL) came into existence on 1st October 1964. The

Company was formed by the merger of Hindustan Aircraft Limited with Aeronautics India

Limited and Aircraft Manufacturing Depot, Kanpur.

The Company traces its roots to the pioneering efforts of an industrialist with

extraordinary vision, the late Seth Walchand Hirachand, who set up Hindustan Aircraft

Limited at Bangalore in association with the erstwhile princely State of Mysore in December

1940. The Government of India became a shareholder in March 1941 and took over the

Management in 1942.


24/81

Today, HAL has 19 Production Units and 9 Research and

Design Centres in 7 locations in India. The Company has an

impressive product track record - 12 types of aircraft manufactured

with in Hindustan Aeronautics Limited (HAL) came into existence on

1st October 1964. The Company was formed by the merger of Hindustan Aircraft Limited

with Aeronautics India Limited and Aircraft Manufacturing Depot, Kanpur.

The Company traces its roots to the pioneering efforts of an industrialist with

extraordinary vision, the late Seth Walchand Hirachand, who set up Hindustan Aircraft

Limited at Bangalore in association with the erstwhile princely State of Mysore in December

1940-house R & D and 14 types produced under license. HAL has manufactured over 3550

aircraft , 3600 engines and overhauled over 8150 aircraft and 27300 engines.

HAL has been successful in numerous R & D programs developed for both Defence

and Civil Aviation sectors. HAL has made substantial progress in its current projects :

Dhruv, which is Advanced Light Helicopter (ALH)

Tejas - Light Combat Aircraft (LCA)

Intermediate Jet Trainer (IJT)

Various military and civil upgrades.

Dhruv was delivered to the Indian Army, Navy, Air Force and the Coast Guard in March

2002, in the very first year of its production, a unique achievement.

Space Programs

HAL has played a significant role for India's space programs by participating in the

Manufacture of structures for Satellite Launch Vehicles like:

PSLV (Polar Satellite Launch Vehicle)

GSLV (Geo-synchronous Satellite Launch Vehicle)

IRS (Indian Remote Satellite)

INSAT (Indian National Satellite)


25/81

Joint Ventures

HAL has formed the following Joint Ventures (JVs):

BAeHAL Software Limited

Indo-Russian Aviation Limited (IRAL)

Snecma HAL Aerospace Pvt Ltd SAMTEL HAL Display System Limited

HALBIT Avionics Pvt Ltd

HAL-Edgewood Technologies Pvt Ltd

INFOTECH HAL Ltd

Apart from these seven, other major diversification projects are Industrial Marine Gas

Turbine and Airport Services. Several Co-production and Joint Ventures with international participation are under consideration.

HAL's supplies / services are mainly to Indian Defence Services, Coast Guards and

Border Security Forces. Transport Aircraft and Helicopters have also been supplied to

Airlines as well as State Governments of India. The Company has also achieved a foothold in

export in more than 30 countries, having demonstrated its quality and price competitiveness.\

HAL has won several International & National Awards for achievements in R&D,

Technology, Managerial Performance, Exports, Energy Conservation, Quality and

Fulfillment of Social Responsibilities.

HAL was awarded the INTERNATIONAL GOLD MEDAL AWARD for Corporate

Achievement in Quality and Efficiency at the International Summit (Global Rating Leaders

2003), London, UK by M/s Global Rating, UK in conjunction with the International.

HAL was presented the International - ARCH OF EUROPE Award in Gold Category in

recognition for its commitment to Quality, Leadership, Technology and Innovation

.

At the National level, HAL won the "GOLD TROPHY" for excellence in Public Sector

Management, instituted by the Standing Conference of Public Enterprises (SCOPE).


26/81

The Company scaled new heights in the financial year 2006-07 with a turnover

of Rs.7, 783.61 Crores.

COMPANY OVERVIEW:

HAL is a NAVRATNA public sector undertaking fully owned by thegovernment of India .

19 production units, 10 R&D centres, 33000 employees, ISO -9001, AS-9100, NADCAP

certifications.

Company Turnover is RS.14,001cr 2011-12.

PBT: 3200cr.

36 th rank among Global Aerospace Companies.

The company is managed by Board of Directors which has a full time chairman andBoard is autonomous.

Appointments of chairman and directors are made by government of India through PESB

(public enterprise selection board).

There are three division of HAL Nasik :

AMD(Aircraft Manufacturing Division).

AOD(Aircraft Overhaul Division).

AURDC(Aircraft Upgradation Research and DevelopmentCenter

So far the Division has manufactured more than 700 aircraft and overhaul more than 1300

aircraft. With the expertise gained over the last 3 decades, the division has already made its

presence felt in the global market and is fully geared up for meeting any challenging task in

the domestic and the international market.


27/81

CORE BUSINESS OF HAL :

Design and development of fixed and rotary wing aircraft, avionics and

accessories.

Manufacture,maintainence,repair amd overhaul of:-

Fighters,transport and trainer aircraft helicopters.

Aeroengines.

Avionics.

Accessories.

Ground support equipment.

Aircraft mid life upgrade programmes.

CURRENT ACTIVITIES IN HAL :

MIG 21(Interceptor).

MIG 27(Bomber).

Su -30 Aircraft product in Nashik:

MIG 21E7FI-264.

MIG 21E7FI-196

MIG 21BIS-290.

MIG trainer 21.

MIG 27-M-105.

Su-30MKI-140( UNDER PROGRESS ).

DEPARTMENTS AT HAL NASHIK DIVISION:

Personnel and Administration.

Security, Viglance and fire services.

Purchase and stores.

Integrated Material Management.

Finance, PF and Payroll.

Transport.

Township administration

COMPLETED


28/81

CORPORATE ORGANISATION

CHAIRMAN

BUSINESS DIRECTORS (5)

BangloreComplex

(MD)

MIGComplex

(MD)

Helicoptor Complex

(MD)

AccessoriesComplex

DesignComplex


29/81

Planning Finance. HR Projects. IMM. HMA

Marketing. Company sec. Lean.

Quality.

Customer Services.

Mgt Services & IT.

PROMOTERS:

The HAL promoters are Government Of India.

FUNCTIONAL DIRECTORS(3)

CORPORATEPLG & MKTG(DIRECTOR)

FINANCE(DIRECTOR)

HR (DIRECTOR)


30/81

PRODUCTS AND SERVICES:-

The following are the products manufactured by HAL:
http://www.hal-india.com/aircraftdivisionnasik.asphttp://www.hal-india.com/aerospacedivision.asphttp://www.hal-india.com/accessoriesdivision.asphttp://www.hal-india.com/aircraftdivisionnasik.asphttp://www.hal-india.com/aerospacedivision.asphttp://www.hal-india.com/accessoriesdivision.asphttp://www.hal-india.com/aircraftdivisionnasik.asphttp://www.hal-india.com/aerospacedivision.asphttp://www.hal-india.com/accessoriesdivision.asphttp://www.hal-india.com/aircraftdivisionnasik.asphttp://www.hal-india.com/aerospacedivision.asphttp://www.hal-india.com/accessoriesdivision.asphttp://www.hal-india.com/aircraftdivisionnasik.asphttp://www.hal-india.com/aerospacedivision.asphttp://www.hal-india.com/accessoriesdivision.asphttp://www.hal-india.com/aircraftdivisionnasik.asphttp://www.hal-india.com/aerospacedivision.asphttp://www.hal-india.com/accessoriesdivision.asphttp://www.hal-india.com/aircraftdivisionnasik.asphttp://www.hal-india.com/aerospacedivision.asphttp://www.hal-india.com/accessoriesdivision.asphttp://www.hal-india.com/aircraftdivisionnasik.asphttp://www.hal-india.com/aerospacedivision.asphttp://www.hal-india.com/accessoriesdivision.asphttp://www.hal-india.com/aircraftdivisionnasik.asphttp://www.hal-india.com/aerospacedivision.asphttp://www.hal-india.com/accessoriesdivision.asp


31/81

DIVISIONS:
http://www.hal-india.com/foundryandforgedivision.asphttp://www.hal-india.com/overhauldivision.asphttp://www.hal-india.com/imgtdivision.asphttp://www.hal-india.com/helicopterdivision.asphttp://www.hal-india.com/enginedivisionkoraput.asphttp://www.hal-india.com/enginedivisionbangalore.asphttp://www.hal-india.com/avionicsdivisionkorwa.asphttp://www.hal-india.com/avionicsdivisionhyderabad.asphttp://www.hal-india.com/aircraftdivisionbangalore.asphttp://www.hal-india.com/foundryandforgedivision.asphttp://www.hal-india.com/overhauldivision.asphttp://www.hal-india.com/imgtdivision.asphttp://www.hal-india.com/helicopterdivision.asphttp://www.hal-india.com/enginedivisionkoraput.asphttp://www.hal-india.com/enginedivisionbangalore.asphttp://www.hal-india.com/avionicsdivisionkorwa.asphttp://www.hal-india.com/avionicsdivisionhyderabad.asphttp://www.hal-india.com/aircraftdivisionbangalore.asphttp://www.hal-india.com/foundryandforgedivision.asphttp://www.hal-india.com/overhauldivision.asphttp://www.hal-india.com/imgtdivision.asphttp://www.hal-india.com/helicopterdivision.asphttp://www.hal-india.com/enginedivisionkoraput.asphttp://www.hal-india.com/enginedivisionbangalore.asphttp://www.hal-india.com/avionicsdivisionkorwa.asphttp://www.hal-india.com/avionicsdivisionhyderabad.asphttp://www.hal-india.com/aircraftdivisionbangalore.asphttp://www.hal-india.com/foundryandforgedivision.asphttp://www.hal-india.com/overhauldivision.asphttp://www.hal-india.com/imgtdivision.asphttp://www.hal-india.com/helicopterdivision.asphttp://www.hal-india.com/enginedivisionkoraput.asphttp://www.hal-india.com/enginedivisionbangalore.asphttp://www.hal-india.com/avionicsdivisionkorwa.asphttp://www.hal-india.com/avionicsdivisionhyderabad.asphttp://www.hal-india.com/aircraftdivisionbangalore.asphttp://www.hal-india.com/foundryandforgedivision.asphttp://www.hal-india.com/overhauldivision.asphttp://www.hal-india.com/imgtdivision.asphttp://www.hal-india.com/helicopterdivision.asphttp://www.hal-india.com/enginedivisionkoraput.asphttp://www.hal-india.com/enginedivisionbangalore.asphttp://www.hal-india.com/avionicsdivisionkorwa.asphttp://www.hal-india.com/avionicsdivisionhyderabad.asphttp://www.hal-india.com/aircraftdivisionbangalore.asphttp://www.hal-india.com/foundryandforgedivision.asphttp://www.hal-india.com/overhauldivision.asphttp://www.hal-india.com/imgtdivision.asphttp://www.hal-india.com/helicopterdivision.asphttp://www.hal-india.com/enginedivisionkoraput.asphttp://www.hal-india.com/enginedivisionbangalore.asphttp://www.hal-india.com/avionicsdivisionkorwa.asphttp://www.hal-india.com/avionicsdivisionhyderabad.asphttp://www.hal-india.com/aircraftdivisionbangalore.asphttp://www.hal-india.com/foundryandforgedivision.asphttp://www.hal-india.com/overhauldivision.asphttp://www.hal-india.com/imgtdivision.asphttp://www.hal-india.com/helicopterdivision.asphttp://www.hal-india.com/enginedivisionkoraput.asphttp://www.hal-india.com/enginedivisionbangalore.asphttp://www.hal-india.com/avionicsdivisionkorwa.asphttp://www.hal-india.com/avionicsdivisionhyderabad.asphttp://www.hal-india.com/aircraftdivisionbangalore.asphttp://www.hal-india.com/foundryandforgedivision.asphttp://www.hal-india.com/overhauldivision.asphttp://www.hal-india.com/imgtdivision.asphttp://www.hal-india.com/helicopterdivision.asphttp://www.hal-india.com/enginedivisionkoraput.asphttp://www.hal-india.com/enginedivisionbangalore.asphttp://www.hal-india.com/avionicsdivisionkorwa.asphttp://www.hal-india.com/avionicsdivisionhyderabad.asphttp://www.hal-india.com/aircraftdivisionbangalore.asphttp://www.hal-india.com/foundryandforgedivision.asphttp://www.hal-india.com/overhauldivision.asphttp://www.hal-india.com/imgtdivision.asphttp://www.hal-india.com/helicopterdivision.asphttp://www.hal-india.com/enginedivisionkoraput.asphttp://www.hal-india.com/enginedivisionbangalore.asphttp://www.hal-india.com/avionicsdivisionkorwa.asphttp://www.hal-india.com/avionicsdivisionhyderabad.asphttp://www.hal-india.com/aircraftdivisionbangalore.asp


32/81

FINANCIAL HIGHLIGHTS 2011-12 :

Hindustan Aeronautics Limited (HAL) a Navratna Defence Public Sector

Unit has declared an impressive financial performance for the year 2011-12. The

provisional financial results are - Sales for the year 2011-12 is Rs.14,001 Crores

registering a growth of 6.74 % over the previous year, Profit Before Tax (PBT) for the

year is at Rs.3,200 Crores.

An Interim Dividend of Rs.747.70 Crores has been paid for the year 2011-12, which is

620 % of the paid-up capital. The Company for the 11th year running has met all the

targets set in Excellent category in respect o f the MOU concluded with the Government

of India, for the year 2011-12.

The highlights of major achievements during the year are:

All flight trials for Turrent Gun and Rocket have been completed for the ALH-WSI, which

marks a significant milestone towards certification.

Light Combat Aircraft (Tejas) LSP-7, flew its maiden flight and LSP-7 will be offered to

IAF for user evaluation trials.

First flight of Light Combat Helicopter (TD-2) was carried out. It is built with weightreduced parts, optimized transmission system and incorporates several improvements

based on flight evaluation of TD-1.

Detailed design and analysis of structural parts of Light Utility Helicopter (LUH) has been

completed.

HAL has bagged Raksha Mantris Excellence in Performance Award for the year 2009 -10.

Three quality circle teams from HAL have won two gold and one distinguished awards in

International Convention on Quality Control Circles (ICQCC 2011), held in Japan.


33/81

ORGANISATION FLOW CHART

AIRCRAFT DIVISION, NASIK

Managing Director (MiG Complex)(For Nasik)

General Manager (Gd. IX)

G M G M G M

(AURDC) (AOD) (AMD)

Additional General Manager (Gd. VIII)

Deputy General Manager (Gd. VII)

Chief Manager (Gd. VI)

Senior Manager (Gd. V)

Manager (Gd. IV)

Deputy Manager (Gd. III)

Officer/Engineer (Gd. II)

Asst Officer/Engineer (Gd. I )


34/81

DEPARTMENTAL ORGANIZATION CHART

Head of HR Deptt. (O)Chief Manager HR(O)

PerformanceManagement /

Employee

RelationManagement

EmployeeRelation

Management

FacilityManagement

(Public Relations

& Printing press)

FacilityManagement(Transport)

Sr.Manager-HR(PM/ERM)

Sr.Manager-HR(ERM)

Officer-HR (FM)PRO

Officer (Printing press)

Manager-HR(FM)

Dy.Manager-HR(FM)


35/81

Daljeet SinghGM(AOD)

B S Sarkar AGM (PO)

V S SrinivasDGM (PO)

C MandalDGM(Prdn) R M Sitharam

DGM (OS)

S RajendranAGM (O)

P B JoshiDGM (O)

P G SastryDGM(Rtbl)

Gp. Capt.(Retd.)V. G Deodhar

DGM (CS)

H L SuryaprakashDGM (Q)

Gp.Capt.(Retd.)R S ApteDGM ATC

Gp.Capt. KDBhatCTP

D MaitiDGM (Prj)

REPORTING PATTERN OF AIRCRAFT OVERHAUL DIVISION, NASIK


36/81

AIRCRAFT OVERHAUL DIVISION ,NASHIK

QUALITY POLICY:-

HAL,AOD-Nashik is committed to establish and maintain a quality

management system for

repair, overhaul ,design upgradation of fighter aircraft and aircraft component that implied

needs of customer to delight customer by ensuring timely delivery ,cost effectiveness and

quality of product through continual improvements in its business processes.

QUALITY OBJECTIVES:

Understanding and satisfying the stated and implied needs of the customers.

Adopt appropriate solutions for continual product and process improvement to meet the

everchanging needs of customers.

To improve outsourcing by developing ve3ndors to meet the customer requirenments.

To progressively decrease the quantum of import by indigenizing more and more critical and

standard parts.

DESIGNATION TYPES :

There are two types:-

Employees

Officers .Designation for employees:

SCALE DESIGNATION NAMESS11 Senior chief supervisor S10 Chief supervisor S9 Senior master S8 Assistant supervisor S7 Highly skilled technician or Senior

assistantS6 Assistant or Senior technicianS5 Assistant B or technicianS4 Junior Assistant

S2 Junior AttendantS1 Helper


37/81

Designation for officers:

GRADE DESIGNATION NAMESG9 General Manager G8 Additional General Manager G7 Deputy General Manager G6 Chief Manager G5 Senior Manager G4 Manager G3 Deputy Manager G2 Engineer or Officer G1 Assistant Engineer

FUNCTION OF THE HUMAN RESOURCE DEPARTMENT IN NASHIK

DIVISION:

HR Depatment implements the directives regarding policies and procedures contained invarious Personnel Circulars/Personnel Bulletins issues by HAL Corporate Office. ThePersonnel Manual consists of eight volumes and is used as reference Manual and isidentified by the issue number and date of amendment.

Human Resource Department in Hindustan Aeronautics Limited,Nashik Divisionis divided into five categories. They are as given below:

HUMAN RESOURCE MANAGEMNT FUNCTIONS

E m p l o y e e

R e l a t

i o n

M a n a g e m e n

t

F a c

i l i t y

M n a g e m e n

t

P e r

f o r m a n c e

M a n a g e m e n

t

T a l e n

t M

a n a g e m e n

t

T a l e n

t A

c q u i s t

i o n


38/81

PERFORMANCE APPRAISAL CYCLE OF HAL

PerformanceAppraisal

Cycle

HRD CELLS OF DIVISION

i) Make available sufficient copies of quarterly task setting & assessment sheetTo all department.Ii) Handover the performance appraisalreport format to the appraise by 20 th mar of performance year.iii) Receive the filled up performanceappraisal report of the previous year by25 th April.iv) Forward report of officers in grades V& above to the complex/corporate office

by 30 th April/5 th may.v) Convene meeting of performancereview board and complete part of thereport of 20 th may.VI) Communicate feedback if any to theappraise by 31 st may .vii) Complete part I of the report.

Task setting for the first Quarter

by 15 th april

Task setting for theSecond Quarter andassessment of First

Quarter by 7th

july .

Task setting for theThird Quarter andassessment of SecondQuarter by 7 th oct .

Task setting for the Fourth Quarter and assessment of Third Quarter by7th jan

Assessment of FourthQuarter by 7 th April &

Completion of report by initiating Authority by 10 th april.

Assessment byReviewing Authority

by 20 th april


39/81

LIGHT COMBAT AIRCRAFT (LCA) (Tejas)


40/81

OBJECTIVES OF THE STUDY

The following are the objectives of the study:

1. To understand the procedure of performance appraisal followed in HAL.

2. To understand Employees attitude towards the present appraisal system.

3. To ascertain how effective the current appraisal system is in

a) Enhancing productivity

b) Attaining corporate standards

4.To suggest measures to positively develop the process of performance appraisal.

RESEARCH METHODOLOGY:

Research methodology is the process of systematic & in depth study of search for any

particular topic. Subject of the investigation based by collection, completion, presentation

& interpretation of relevant details. It helps to presentation of data in correct manner & in

right quality & quantity. Without using research methodology the project report can not be

done.

Definition:-

Research is defined as, a careful investigation or enquiry especially through

search for new facts in any branch of knowledge .

Data collection method is very useful in conducting research. It is depending on the

stheirces. Statistical data are classified under two categories.

Methods of DataCollection

Primary DataCollection

Secondary DataCollection


41/81

1.Primary Data

Primary data are obtained by study specifically designed to fulfill the data needs of the

problems at hand.Such data are original in character & are generated in large number of

surveys.

Primary data are those which are collected for specified objectives directly from the field of

enquiry & are original in nature. The collection of primary data is laborious & involves

huge time & is generally beyond the scope of an individual.

Example:-

Interview

Observation

Questionnaire

This project report carries the following actual techniques of collecting primary data.

Interview

Observation

Questionnaire

Sample size : 100

2.Secondary Data

Secondary data means data that is already available in various reports, letters, books,

periodicals, etc. secondary data is that, which has been used previously for any research & is

now in use for the second time.

In short, the data presented in research reports when used again for further research is

called Secondary Data.

Examples:-

1. Articles

2. Magazines

3. Internet Source

4. Reference Books & Text Books

This project report carries the following actual theories of collecting secondary data.


42/81

Booklets, pamphlets, magazines of organization.

Website of organization.

Reference book

SELECTION OF TOPIC:

Performance Appraisal is considered as an indispensable tool for an organization, for

the information it provides is highly useful in making decisions regarding various personal

aspects such as promotions and merit increases. Performance measures also link information

gathering and decision making processes which provide a basis for judging the effectiveness

of personnel. If valid performance data is available, timely, accurate, objective, standardize

and relevant, management can maintain consistent promotion and compensation policies

throughout the organization.Formal performance appraisal plans are designed to meet three needs, one of the

organization and other two of the individual.

1. They provide systematic judgments to back up salary increases, transfers, demotions or

terminations.

2. They are means of telling an individual how he is doing and suggesting needed changes

in his behavior attitudes, skills, or job knowledge. They let him know where he stands

with the boss.3. The superior uses them as a base for training and developing the individual.

The growing importance given to the topic of Performance Appraisal, the use of

various metrics in performance management and the strategic role the concept of

performance appraisal plays in decision making regarding the succession of an

organisation have encouraged me o choose this topic for research study.

SCOPE OF THE STUDY

The performance appraisal is emerging as one of the strong tools in the development

of human resources. Performance Appraisal system has dual approach namely, Evaluation

approach and Development approach. One without the other makes the appraisal ineffective.

Since the objectives of the Performance Appraisal system are to enhance effectiveness,

potential, development and career stretch of an individual for the management to formulate


43/81

HRD programs and to meet the organizational needs, there is a wide scope for study of

Performance Appraisal System.

In the present competitive scenario it is necessary for any organization to assess the

performance of the employees for its future growth and development. The study throws light

in understanding the various methods for accessing the performance appraisal of theemployees.

The company can compete effectively in the market only when it utilizes the available human

resources.

The human resources can be termed as a human capital. It is a essential for any organization

to evaluate the performance of the employees as it is a criteria for promotion and their growth

and survivor.

This study also focuses to highlight the various strength and weaknesses in the methods of performance appraisal which is currently implementing.

The success of any organization clearly signifies by using the statement the right member of

employee, right type of employee, employee at right place and employee at right time.

It can be revealed only through the performance appraisal.

The skills and knowledge possessed by the employees can be determined through this

performance appraisal.

The company can designed policies and procedures in terms of job description, job

specification and job analysis and also called the functions of performance appraisal

LIMITATIONS OF THE STUDY

1.Time frame is too short i.e. only 2 months. It is very difficult to study any process in a large

organization in this time frame.

2. Sample size (100) may not be the true representation of the population.


44/81

INTERMEDIATE JET TRAINER (IJT)


45/81

(i) Primary Data : Questionnaire

Observation

(ii) Secondary Data :

Company Records

Internet

SAMPLING PLAN:

Sampling Technique: Simple Random Sampling

Sample Size: 100 Employees

Sample Area: Hindustan Aeronautics Ltd., Ojhar, Nasik

Duration: Two Months.

PROCESS OF PERFROMANCE APPRAISAL SYSTEM FOLLOWED IN HAL HAL follows a two-tier Performance Appraisal system. Initiating Authority and

Reviewing Authority are the two parties which appraise the performance of an

individual. In HAL, tasks are set on quarterly basis and employees performance is

evaluated for the same. Some traits are decided by the company on the basis of which

employees are evaluated. At all levels, officers do their self appraisal. Below is the

format of Appraisal form .

Table: 2.1 Format of Appraisal formPart Content To be filled by

Cover Page Bio Data of the Appraisee Appraisee

Part A Quarterly Task Setting &Assessment Appraisee & IA

Part BSelf Appraisal

Comments On Self AppraisalAppraiseeIA & RA

Part C Assessment of Traits IA & RA

Part D Qualitative Assessment Appraisee IA & RAPart E General Assessment & MRC IA & RAPart F Training & Development Needs IA & RA

Part G Evaluation By PRBRemarks Of Higher AuthoritiesPRB.

GM/MD/FD/CHPart H Illustrative Areas Training -Part I Check List HRD Cell

QUARTERLY TASKS AND ACHIEVEMENTS


46/81

The most important feature of PAR System is the setting up of Quarterly Tasks

jointly by the IA and the Appraisee. These are called Mutually Agreed Tasks. The set

tasks are recorded on an Assessment Sheet. Maximum 100 marks are distributed

amongst all the tasks on the relative importance. The IA evaluates the performance of

the Appraisee by 07 th of the first month of the subsequent Quarter. The Quarters for

the purpose of PARs are shown in the following table:

Table: 2.2 DETAILS OF QUARTERS FOR PA

SELF APPRAISAL

All officers are required to assess themselves in part B of the Appraisal form. In this,

they get the opportunity to assess their performance against mutually agreed tasks.

The IA and RA have to comment on the self-appraisal done by officers.

LEVELS OF INITIATING / REVIEWING AUTHORITY(IA/RA)

To appraise the appraisee, different levels of Initiating and Reviewing authority have

been appointed.

Table: 2.3. LEVELS OF INITIATING / REVIEWING AUTHORITYGrade of Appraisee Initiating Authority Reviewing Authority

I / II Min. Grade III or Above Min. Grade V or Above.III / IV Min. Grade V or Above Min. Gr. VI or Above.V / VI Min. Grade VII or Above Min. Grade VIII or Above.

VII / VIII Min. Grade IX or Above Min. Grade IX or Above.IX / X MD / FD CH

ASSESSMENT OF TRAITSSeparate sets of traits are provided to different levels of officers and different

weightage is assigned to these traits based on the level of the officer to be evaluated.

QUARTERS PERIOD I 1ST APRIL TO 30 TH JUNEII 1ST JULY TO 30 TH SEPTEMBER III 1ST OCTOBER TO 31 ST DECEMBER IV 1ST JANUARY TO 31 ST MARCH


47/81

The traits are graded on a scale of five. The details of traits for various levels of

officers are shown in the following table:

Table: 2.4. TRAITS FOR VARIOUS LEVELS OF OFFICERS

LEVEL TRAITSLevel I(Grade I/II)

Job Knowledge: Extent of theoretical knowledge and practical know-how as

related t assigned tasks; related/ allied jobs and knowledge of current

development in his own field.

Quality of work: General excellence of output, methods and systems.

Man management: Ability to ensure optimum utilization of manpower

29 towards target fulfillment.

Punctuality and Attendance: General discipline in adhering to work timings

and attendance.

Level II(Grade III /IV)

Job knowledge: Extent of theoretical knowledge and practical know-how as

related to assigned tasks related / allied jobs and knowledge of current

development in his own field.

Planning and coordination: Ability to meticulously plan his job and

effectively coordinate with his team members in achievement of common

organizational goals.

Quality of work: General excellence of output, methods and systems.Developing subordinates: Ability to interact, guide, counsel and nurture

subordinates with a view not only to help them to perform their present job

effectively but also to groom them for meeting greater responsibility/

challenge.

Potential to shoulder higher responsibilities: Ability to take up higher level

responsibility and set pace for the team member towards goal achievement.

Level III(Grade V/VI)

Professional competence: Functional, managerial ability in application of jobknowledge to set perspective plan and fulfillment of the same with optimum

use of resources.

Quality consciousness: General excellence of the work/ job executed. Efforts

to achieve quality improvement plan and strive for higher standards.

Cost and Time consciousness: Utilization of resources effectively, ensuring

required tolerance/ quality within optimum time and minimum cost.

Developing subordinates: Ability to interact, guide, counsel and nurture


48/81



challenge.

Team building: Ability to interact, command and influence people with a

view t have cohesiveness amongst them to ensure thrust in the direction of

achievement of targets.Potential to shoulder higher responsibilities: Ability to take up higher level


Level IV(Grade VII/VIII)

Professional competence: Functional, managerial ability in application of job

knowledge to set perspective plan and fulfillment of the same with optimum

use of resources.


to achieve quality improvement plan and strive for higher standards.Cost and Time consciousness: Utilization of resources effectively, ensuring


Customer satisfaction: Ability to fulfill the needs of both internal and

external customers of his position.

Time management: Productive and effective use of available time.




challenge.

Team building: Ability to interact, command and influence people with a


achievement of targets.



Level V(Grade IX/X)

Professional competence: Functional, managerial ability in application of job

knowledge to set perspective plan and fulfillment of the same with optimum

use of resources.


to achieve quality improvement plan and strive for higher standards.

Cost and Time consciousness: Utilization of resources effectively, ensuring


Customer satisfaction: Ability to fulfill the needs of both internal and


49/81

external customers of his position.

Time management: Productive and effective use of available time.




challenge.Team building: Ability to interact, command and influence people with a


achievement of targets.



Man management: Ability to ensure optimum utilization of manpower towards target fulfillment.Management of external environment: Ability to deal with externalagencies towards building image of the company.

Table: 2.4. TRAITS FOR EMPLOYEES

Achievement of Task Assigned: Level of accomplishment of assigned

tasks: IA to monitor Tasks assigned during the Appraisal Year so as to

ascertain achievements.

Average Individual Incentive Efficiency: IA must award Marks based

on the average individual efficiency of the workman.

Attendance & Punctuality : General discipline in adhering to work

timings and attendance. IA/RA should also take into consideration the

number of days on which the workman has been on LWP total working

days of the Division/Office during the Appraisal year.

Quality & Reliability : General excellence of output, methods and

systems tems.Efforts to achieve quality improvement plan to strive for higher standards.

Conduct & Discipline : General behavior, conduct and Discipline of the

workplace, IA/RA while awarding marks should consider issuance of

charge sheet/initiation of disciplinary action, punishments imposed e.t.c.

House Keeping : Level of standards of housekeeping at work place.

Job Knowledge : Extent of theoretical knowledge and practical know


50/81

how as related to assigned tasks.

Any outstanding work done during the Period

(Suggestions,Innovation,Initiative e.t.c): Marks awarded based on the

number of suggestions made e.t.c.

Table: 2.5. DISTRIBUTION OF MARKS FOR EACH TRAIT.

TRAITSGRADEI & II

GRADEIII & IV

GRADEV & VI

GRADEVII &VIII

Performance 80 75 70 60

Job Knowledge 5 5 _ _

Quality of Work 5 5 _ _ Man Management 5 _ _ _

Punctuality & Attendance 5 _ _ _

Planning & Coordination 5

Developing Subordinate _ 5 5 5

Potential to shoulder higher

responsibilities _ 5 5 5

Professional Competence _ _ 5 5

Quality Consciousness _ _ 5 5

Cost & time consciousness _ _ 5 5

Team building _ _ 5 5

Customer Satisfaction _ _ _ 5

Time Management _ _ _ 5

Total 100 100 100 100

Scale of GradationTotal Marks 100-90 89-80 79-50 Below 50

Performance

Rating

Exceptional Above Average Average Below Average


51/81

LIGHT UTILITY HELICOPTER (LUH)


52/81

1. The Performance Appraisal System followed in the company is known to me?

INFERENCE: From the graph, we can see that 55% people are strongly agree with the statement 36% are agreeing means they are aware about the PA system followed in HAL.

3% have no opinion about the statement. 6 % people strongly disagree with the statement i.e. they are not aware about the

PA system.

55

36

30

6

StronglyAgree

Agree No opinion Disagree StronglyDisagree

NO OPINION RESPONDENTS PERCENTAGE 1 Strongly Agree 55 552 Agree 36 363 Neutral 3 34 Disagree 0 05 Strongly disagree 6 6


53/81

2. I am aware of the objectives of Performance Appraisal system practiced in the company

INFERENCE:

44% people know the objective of PA, they are strongly agree with the statement. 43% people are agreeing with the statement. 5% have no opinion about the statement. 8% are strongly disagreeing with the statement, i.e. they dont the objective of the PA.

44 43

5

0

8

StronglyAgree


NO OPINION RESPONDENTS PERCENTAGE 1 Strongly Agree 44 442 Agree 43 433 Neutral 5 54 Disagree 0 05 Strongly disagree 8 8


54/81

3. I am aware of what is expected out of my job

INFERENCE:

91% people are well aware about their job responsibility. 3% people are strongly disagreeing with the statement. 6% have no opinion about the statement

StronglyAgree53%

Agree38%

Neutral6%

Disagree0%

StronglyDisagree

3%

NO OPINION RESPONDENTS PERCENTAGE1 Strongly Agree 53 532 Agree 38 383 Neutral 6 64 Disagree 0 05 Strongly Disagree 3 3


55/81

4. The performance appraisal systems help in improving employees efficiency.

INFERENCE: 73% people think that PA is beneficial in improving employees efficiency. 16% people have no opinion about the statement.

11% think that PA is not beneficial in improving the efficiency of employees.

StronglyAgree30%

Agree43%Neutral

16%

Disagree9%

StronglyDisagree

2%



56/81

5. Performance appraisal is a motivational tool used by the organization.

INFERENCE:

76% people think PA as an important motivational tool. 14% are in opposition to the statement. 9% dont have any opinion.

Strongly

Agree30%

Agree46%

Neutral9%

Disagree

11%

StronglyDisagree

4%

NO OPINION RESPONDENTS PERCENTAGE

1 Strongly Agree 30 302 Agree 46 463 Neutral 9 94 Disagree 11 115 Strongly Disagree 4 4


57/81

6. Training needs of employees are identified during performance appraisal.

INFERENCE:

65% people consider PA as a tool to identify training needs. 24% people dont consider PA as a tool to identify training needs. 11% dont have any opinion about the statement.

StronglyAgree20%

Agree45%

Neutral11%

Disagree16%

StronglyDisagree

8%



58/81

7. After performance appraisal, company provides necessary training.

INFERENCE:

36% people are agreeing that after PA appropriate training has been given to the employees. 41% people are disagreeing with the statement; they think no training has been given to the

employees. 23% people have no opinion about the statement.



59/81

8. The Performance Appraisal improving relationship between the Superior & Subordinate.

INFERENCE:

53% people think that PA improves Superior- Subordinate relationship. 16% people think that PA doesnt improve Superior - Subordinate relationship. 31% people have no opinion about the statement


StronglyAgree13%

Agree40%

No opinion31%

Disagree13%

StronglyDisagree

3%


60/81

9.My immediate Superior conduct periodical performance appraisal.

INFERENCE:

74% people think that immediate superior conducts PA. 14% people think somebody else does the PA. 12% people have no opinion about the statement

23

51

12 104

StronglyAgree




61/81

9. My superior gives me proper job related guidance from time to time.

INFERENCE: 33% people strongly agree that they get proper guidance from their superior for their job. 46% people agree that they get proper guidance from their superior for their job. 12% people dont get proper guidance from their superior . 9% people have no opinion about the statement.

33%

46%

9%11%

1%

Strongly Agree

Agree

No opinion

Disagree

StronglyDisagree



62/81

11. Performance appraisal is a lengthy and time consuming activity.

INFERENCE:

38% people think PA as a time consuming process. 32% people think that PA is not time consuming process. 30% people have no opinion about the statement

14%

24%

30%

25%

7%

Strongly Agree

Agree

No opinion

Disagree

StronglyDisagree

NO OPINION RESPONDENTS PERCENTAGE1 Strongly Agree 14 142 Agree 24 24

3 Neutral 30 304 Disagree 25 255 Strongly Disagree 7 7


63/81

12. HAL should implement computerized automated performance appraisal system.

INFERENCE: 83% people are agreeing that HAL should implement computerized or automated PA

form system. 5% people are happy with current form. 12% people have no opinion about the statement.

StronglyAgree51%

Agree32%

No opinion12%

Disagree1%

StronglyDisagree

4%

NO OPINION RESPONDENTS PERCENTAGE 1 Strongly Agree 51 512 Agree 32 323 Neutral 12 124 Disagree 1 15 Strongly Disagree 4 4


64/81

13. The traits included in the performance appraisal form are insufficient for evaluatingemployees performance.

INFERENCE: 58% people are in favor that traits included in the PA form are insufficient. Only 23% think that traits included in the PA form are sufficient in evaluating employees

performance. 19% people have no opinion about the statement.

Strongly

Agree24%

Agree34%

Neutral19%

Disagree19%

Strongly

Disagree4%



65/81

14. Feedback system is practiced in our organisation after completion of given task.

INTERPRETATION: 12% people strongly agree that they get feedback after completion of given task. 44% people agree that they get feedback but not always. 23% people disagree with the statement but sometime they get the feedback. 6% people strongly disagree with the statement i.e. they never get the feedback for their

job.

15% people have no opinion about the statement

12

44

15

23

6

StronglyAgree


NO OPINION RESPONDENTS PERCENTAGE

1 Strongly Agree12 12

2 Agree 44 443 Neutral 15 154 Disagree 23 235 Strongly Disagree 6 6


66/81

15. Career growth plan is a part of the performance appraisal system.

INFERENCE: 75% people think that career growth plan is the part of the PA system. 16% people dont agree that career growth plan is a part of the PA system. 9% people have no opinion about the statement.

NO OPINION RESPONDENTS PERCENTAGE1 Strongly Agree 27 272 Agree 48 483 Neutral 9 94 Disagree 10 105 Strongly disagree 6 6

27%

48%

9%

10%6%

Strongly Agree

Agree

No opinion

Disagree

StronglyDisagree


67/81

16. The company should include common training program in the performance appraisalform.

INFERENCE: 79% people think that training programs included in the PA form are insufficient. 11% people think that training programs in PA form are sufficient. 10% people have no opinion about the statement.

36%

43%

10%

9%

2% Strongly Agree

Agree

No opinion

Disagree

StronglyDisagree



68/81

17. Performance appraisal evaluates employees purely on the basis of job performance.

INFERENCE:

50% people are agreeing that PA evaluates employees purely on their job performance. 25% people disagree with the statement. 25% people have no opinion about the statement.

16

34

25

17

8

StronglyAgree


NO OPINION RESPONDENTS PERCENTAGE1 Strongly Agree 16 162 Agree 34 343 Neutral 25 254 Disagree 17 175 Cant Say 8 8


69/81

18. Performance appraisal is a true reflection of an employees efficiency , performance andEffectiveness.

INFERENCE:

54% people think that by PA we get true picture of employees efficiency, performanceand effectiveness.

24% people do not agree with the statement. 22% people have no opinion about the statement.

NO OPINION RESPONDENTS PERCENTAGE1 Strongly Agree 14 142 Agree 40 403 Neutral 22 224 Disagree 15 155 Cant Say 9 9


70/81

EMPLOYEE VIEWS

50% people attended the 2-3 training programs.

60% people rated with the overall performance in last one year.

50% people want to get motivated in outstanding work.

60% people are not satisfied with the current appraisal system.

55% people want changes in appraisal system that they want face to face discussion with

Initiating Authority and Reviewing Authority. Proper work should be provided to

workmen to utilize their own skill.

65% people want to share their job experience after their retirement .

65% people want that to implement MBO method in HAL.

Suggestions from the employees they said most of them want to be motivated from the

side of company.


71/81

FIFTH GENERATION FIGHTER AIRCRAFT (FGFA)

CHAPTER 6

FINDINGS &CONCLUSIONS


72/81

1. From the100 employees surveyed, most of them (approximately

91%) are aware about the Performance Appraisal System followed in the company and an

equal percentage of them aware about their job responsibilities.

2. 76% people think PA motivates employees for doing the job better and 65% people think

through PA, Company can identify training needs.

3. A large majority (76%) feel that performance appraisal is an important motivational tool.

4. 53% people think that PA is effective in improving Superior- subordinate relationship.

5. Three-fourths of the respondents had responded that career-growth plan is part of the

performance appraisal system.

6. More than one third of the respondents (41%) opine that appropriate training is not given

after performance appraisal..

7. More than one-third (38%) have replied that performance appraisal is a lengthy and time-

consuming process.


73/81

MULTI-ROLE TRANSPORT AIRCRAFT (MTA)

SUGGESTIONS &RECOMMENDATION


74/81

1. The very concept of Performance Appraisal should be marketed

throughout the organization; unless this is done, people would not

accept it, however important it may be to the organization.

2. HR department can organize a workshop on Performance Appraisal System for all the

employees to educate people about the system followed in the company.

3. The content of Appraisal form and marking scheme should be explained in detail to all the

employees in order to ensure that performance appraisal is conducted in its true spirit.

4. 360 o & MBO Appraisal system should be introduced for all Officers in the company so that

performance appraisal reflects a fair picture.

5. Training is an important tool to develop employees. Training has to be imparted to equip

employees with the required skills to ensure job performance. Appropriate training schedule

has to be prepared and the same is to be conveyed to the employee. The Training Department

has to ensure that the training programme mentioned in Performance Appraisal report is

provided without fail.

6. The other criticism that the PA system is lengthy and time consuming can be overcome by

implementing an online PA system. Only relevant fields have to be kept dynamic. Other

permanent details of the employees like Date of Joining, Training undergone etc have to be

stored in a database which will be reflected each time the PA form is filled without having to

type the same details every time.

7. While rating the employees in PA there should be face to face discussion with Initiating

Authority and Reviewing Authority.


75/81

LIGHT COMBAT HELICOPTER (LCH)

CONCLUSION


76/81

1. The performance appraisal system and the procedure followed at HAL

have been well received by the employees.

2. The study reflects a fairly positive image of the PA system. Majority of

the questions have received positive feedback from the majority of the respondents.

3. A majority of the respondents agree that career growth plan is a part of the PA system, which

speaks well of the performance appraisal system being followed.

4. The system captures the training needs of individuals.

5. The respondents also opine that appropriate training is not provided after PA and that more

training programs need to be added.

6. In a world of technology, it is imperative that the PA system should be set up online to

eliminate unwarranted delays. It also improves employees efficiency. After surveying 100

employees, it can be concluded that PA is effective in motivating people in achieving the set

targets and provides opportunity to improve oneself.


77/81

APPENDICES: BIBLIOGRAPHY QUESTIONNAIRE GLOSSARY OF TERMS


78/81

BIBLIOGRAPHY

1. Human Resource Management by Ashwatthapa.

2. Circulars of HR department.

3. Web- sites: www.naukrihub.com

www.ichr.com

www.hal-india.com

GLOSSARY OF TERMS

1. Performance appraisal (PA) : also known as employee appraisal, is a method by which

the job performance of an employee is evaluated (generally in terms of quality, quantity, cost

and time). Performance appraisal is a part of career development.

2. Paired Comparison Method : Ranking employees by making a chart of all possible pairs

of the employees for each trait and indicating which is the better Employee of the pair.

3. Forced Distribution Method : Similar to grading on a curve; predetermined percentages

of ratees are placed in various categories.

4. Graphic Rating Scale : A scale that lists a number of traits and a range of performance for

each. The employee is then rated by identifying the score that best describes his or her

performance for each trait.

5. Alternation Ranking Method : Ranking employees from best to worst on a particular trait.

6. Critical Incident Method : Keeping a record of uncommonly good or undesirable

examples of an employees work -related behavior and reviewing it with the employee at

predetermined times.

7. Behaviorally Anchored Rating Scale (BARS) : An appraisal method that aims at

combining the benefits of narrative and quantified ratings by anchoring a quantified scale

with specific narrative examples of good and poor performance.

8. Management By Objectives (MBO) : Involves setting specific measurable goals with each

employee and then periodically reviewing the progress made.


79/81

9. Unclear Performance Standards : An appraisal scale that is too open to interpretation;

instead, include descriptive phrases that define each trait and what is meant by standards like

good or unsatisfactory.

10. Halo Effect : In performance appraisal, the problem that occurs when a supervisors

rating of a subordinate on one trait biases the rating of that person on other traits.

11. Central Tendency : A tendency to rate all employees the same way, avoiding the high

and the low ratings.

12. Strictness / Leniency : The problem that occurs when a supervisor has a tendency to rate

all subordinates either high or low.

13. Appraisal Interviews : An interview in which the supervisor and subordinate review the

appraisa l and make plans to remedy deficiencies and reinforce strength.

QUESTIONNAIRE

HALHR SURVEY

QUESTIONNAIRE ON PERFORMANCE APPRAISAL FOR EMPLOYEES(Please be free to share your views. your answers are a valuable for us)

Statements

S.No Statements Please tick your response1 2 3 4 5

1.The Performance Appraisal System followed in the

company is known to me

2.I am aware of the objectives of Performance Appraisal

system practiced in the company.

3. I am aware of what is expected out of my job.

4.

The performance appraisal systems help in improving

employees e

hr project report final

Documents

Transcript of hr project report final