PGD-HRM- SEM4

NAME SONAM GANDHI REGISTRATION NUMBER D20401100039 SUBMITTED TO DR. VIDYA NAYAK : TITLE: A PROJECT REPORT ON PER ORMANCE MANAGEMENT SYSTEM AT ESSAR HEAVY ENGINEERING SERVICES! "A U#$% &' E(()* P*&+,-%( "I. L%/..

SONAM GANDHI

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ACKNO0LEDGEMENT I am having great pleasure while expressing my deep sense of gratitude to my institute SVKMs, Narsee Monjee Institute of Management Studies and Essar of Essar %roje!ts &td'(, M'*'#' programme'
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eavy Engineering servi!es "# $nit

a)ira for giving me an opportunity to !arry out my proje!t as a part of

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ere+y I am very than,ful to Mr' *i,ash Nath, for allowing me in their esteemed organi)ation, Essar eavy Engineering servi!es "# $nit of Essar %roje!ts &td'(, a)ira' I am also very than,ful to Mr'$day Mishra for their support and also Mr'-hetan *orse to give their pre!ious time' .he proje!t was underta,en as a part of M'*'#' %rogramme while pursuing the study at SVKMs Narsee Monjee Institute of Management Studies' I have tried for my +est to ma,e the training as useful as possi+le and get a deep through ,nowledge a+out / uman 0esour!e .raining1' In general, we would also than, all the people in the industry who have helped us, dire!tly or indire!tly, and without whose !o2operation and guidan!e, our training would have +een a failure'

S3N#M 4#N5 I

INDE1

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OVERVIE0 O THE COMPANY

-ompany %rofile %rodu!ts of !ompany 3rgani)ation -hart HUMAN RESOURCE AT EHES H23)# R,(&2*-, P&4$-5 &' EHES

&ists of poli!y &ists of 0 %ro!ess

PMS PHILOSOPHY AT EHES "M6%E%tra!( MDG PROCESS WITH PROMOTION POLICY INDINGS CONCLUSION BIBLOGRAPHY

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O6+,-%$7, &' (%2/5 o .o understand the %erforman!e #ppraisal a!tivities of Essar Servi!es "# $nit of Essar %roje!ts &td'( o .o find out if the %erforman!e #ppraisal a!tivities help the employee in his %erforman!e' o .a,e the response of employees towards the %erforman!e #ppraisal a!tivities !arried on upon them' eavy Engineering

S-&8, &' %9, (%2/5 .he topi! !hosen %erforman!e appraisal was aimed for the +etterment of the organi)ation in terms of 7uality as well as 7uantity' .he s!ope of the study under mentioned points depi!ts the same' o .o in!rease the produ!tivity +y in!reasing the level of %erforman!e' o .he program would help the organi)ation in meeting it future personal need' o .he program will help the employee in their personal 4roup +y improving their ,nowledge as well as s,ill'

L$3$%)%$&# &' (%2/5 o &a!, of expertise trainer handed in the program' o &a!, of feeling in people of against the awareness for the %erforman!e #ppraisal program' o Sear!h for the exa!t #ppraisal was also diffi!ult to define' prose!ution of %erforman!e #ppraisal

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ESSAR PHILOSOPHY :THE SUCCESS O THE ESSAR GROUP IS DEPENDENT ON THE O US. THE MINDSET O YESTERDAY;S MANAGERS 0AS TO ACCEPT TO COMPLACENCY. 0E SHOULD NOT BE A RAID TO GO AGAINST TODAY;S CURRENTS BECAUSE 0E KNO0 THAT TOMMORRO0 IS OURS. 0E MUST 0ORK ON A VISION O THAT BUSINESS CAN BECOME.<

DEVELOPMENT AND REALISATION O THE POTENTIAL O EACH ONE

COMPROMISE AND KEEP THINGS NEAT AND ORDERLY 0HICH LEADS

ESSAR MISSION TO CREATE ENDURING VALUE OR CUSTOMERS AND

STAKEHOLDERS IN CORE MANU ACTURING AND SERVICE BUSINESSES! THROUGH 0ORLD=CLASS OPERATING STANDARDS! STATE=O =THE=ART TECHNOLOGY AND THE >POSITIVE ATTITUDE; O OUR PEOPLE.

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O7,*7$,? &' %9, C&38)#5 E(()* G*&28 .he Essar 4roup is a multinational !onglomerate and a leading player in the se!tors of steel, energy, power, !ommuni!ation, shipping ports 8 logisti!s, !onstru!tion and mining 8 materials' 9ith operations in more than :; !ountries a!ross five !ontinents, the 4roup employs are <;;;; people with revenues of a+out $S5 => +illion in ?y;@2;A Essar +egan as a !onstru!tion !ompany in =A<A and diversified into manufa!turing, servi!es and retail' 3ver the last de!ade, it has grown through strategi! glo+al a!7uisition and partnerships, or through 4reenfield and *rownfield development proje!ts, !apturing new mar,ets and dis!overing new raw material sour!es' .oday, the 4roup -ontinues to expand its glo+al footprint, fo!using on mar,ets in #sia, #fri!a, Europe, the #meri!ans and #ustralia' Essar invests signifi!antly in the latest te!hnology to drive forward and +a!,ward integration in its +usinesses and on leveraging synergies +etween these +usinesses' It also fo!uses on in house resear!h and innovation to +e a low !ost manufa!ture with high 7uality produ!ts and innovative !ustomer offerings' #longside its am+itious +usiness pursuits Essar has +een !ommitted to its so!ial responsi+ility' .he 4roup runs !ommunity outrea!h initiatives in all its plant lo!ations, with a fo!us on edu!ation, health!are, environment 8 agri!ultural development and self employment' Essar is !ommitted to sustaina+le +usiness pra!ti!es' 3ur SE "health, safety 8 Environment(

management system is on par with glo+al standards' 9e are also ta,ing !limate !hanges initiatives to redu!e our !ar+on footprint' .his in!ludes several -5M "-lean development Me!hanism( proje!ts that !an earn the !ompany -E0 "-ertified Emission 0edu!tion( !redits' # growing num+er of our +usinesses joining the list every year, are !ertified to international environment standards li,e IS3 A;;= B =>;;=, and health and safety standards li,e 3 S#S =@;;=' .he Essar 4roup is widely regarded as a responsi+le and !ons!ientious glo+al employer' It has experien!e in managing +usinesses in different geographies with a !ulturally diverse wor,for!e' .his is why its people pra!ti!es are sensitive to !ross2!ultural nuan!es' .he 4roups people
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strategy is fo!used on promoting learning !ultural that !ontinually enhan!es the professional s,ills of its employees'

COMPANY PRO ILE

ES & C Essar Steel oldings &td' EE & C Essar Energy oldings &td' E% & C Essar %ower oldings &td' E- & C Essar -ommuni!ation oldings &td' ES&& C Essar Shipping 8 &ogisti!s &td' E%& C Essar %roje!ts &td' E(()* P*&+,-%( L%/. Essar proje!ts ltd is a >;;; strong glo+al engineering, pro!urement and !onstru!tion !ompany' ead7uarter is in 5u+ai' It has offi!es in India and !hina' It provides !omplete solution under one roof through Essar Engineering -entre, Essar 4lo+al Supplies, Essar -onstru!tion and E(()* H,)75 E#@$#,,*$#@ S,*7$-,(. EHES is a heavy engineering fa!ility, set2up a+out D years +a!, for manufa!turing e7uipment mainly to ESS#0 4roup of !ompanies

P*&/2-%( 0efinery %ressure Vessels, -olumns, 0ea!tors 8 eat Ex!hangers

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Steel %lant 2 E7uipment 8 Ma!hinery Material andling E7uipment : =E;;; M.Bannum "%resently(

C)8)-$%5

P,*(&##,4 S%)'' : =D; 0&*A'&*-,: =>;;

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HR )% E(()* uman 0esour!es may +e the most misunderstood of all !orporate departments, +ut itFs also the most ne!essary' .hose who wor, in uman 0esour!es are not only responsi+le for hiring and firing, they also handle !onta!ting jo+ referen!es and administering employee +enefits' ItFs true that any individual who wor,s in uman 0esour!es must +e a Gpeople person'G Sin!e

anyone in this department deals with a num+er of employees, as well as outside individuals, on any given day, a pleasant demeanor is a must' Managing employees is a major jo+, so those in uman 0esour!es must +e e7ual to the tas,' .en or twenty years ago, uman 0esour!es personnel were rarely seen' Instead they wor,ed +ehind uman 0esour!es personnel donFt only handle the s!enes to ensure personnel re!ords were in order and employee +enefits were +eing properly administered, +ut the jo+ stopped there' .odayFs feat' ItFs not enough to +e a+le to s!reen potential employees, however' .hose who wor, in uman small administrative tas,s' .hey are responsi+le for staffing major !orporations' .his is no minor

0esour!es also have to +e a+le to handle a !risis in a smooth, dis!reet manner' 9hether the issue is health !are related or regarding sexual harassment or employee disputes, a person wor,ing in uman 0esour!es must +e trusted to ,eep an employeeFs personal details to him or herself' .he uman 0esour!e team must also +e a good judge of morale and reali)e when morale +oosting in!entives are needed' ItFs up to them to ma,e sure all employees are !omforta+le with their surroundings and wor,ing under a!!epta+le, if not a+ove average, !onditions' uman 0esour!es may have gotten a +um rap, +ut itFs !learly among the most important departments in any !orporation'

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HRD MISSION TO TRANS ORM HUMAN RESOURCE ROM EMPLOYEE! TO A

MANAGEMENT PARTNER IN ACHIEVING THE BUSINESS GOAL. PROACTIVELY CREATE ENVIRONMENT AND 0ORK 0ITH

PEOPLE TO PROVIDE COMPETITION EDGE TO THE BUSINESS OR CONTINOUS GRO0TH. CREATE A INEST LEARNING CENTRE! 0HICH 0OULD

ACILIATES THE ACBUISITION O THE REBUISITE KNO0LEDGE! SKILLS AND ATTITUDES O ABOUT THE BEST ORGANISATIONAL E COMPETENCIES THAT 0ILL BRING OUR EMPLOYEES! TO0ARDS AMONG

ECTIVENESS.

=' Essar goals is to +e a lean organi)ation where every Essar employee is !arefully !hosen, highly trained and empowered with unparallel !hallenges and growth opportunities' :' It has veterans of pu+li! se!tor !ompanies mix with multinational managers and young talent that as grown within the !ompany' D' Ensure sele!tion and introdu!tion of personnel of the re7uisite !ali+er .emperament and integrity' >' #dopt training, jo+ rotation and motivation pra!ti!es to ena+le employees to a!hieve their potential and ma,e their +est !ontri+ution to su!!ess and family welfare' E' 5evelop the employee as a total person'

NUMBER O EMPLOYEES:

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PGD-HRM- SEM4
Essar has a a)ira' POSITIVE ATTITUDE THE PHILOSOPHY O ESSAR: .he D>;; employees really live out its philosophy of a positive to turn every !hallenge into an opportunity and every +en!hmar, into a +aseline' uman 0esour!e of D>;; employees in!luding =EH: in the Steel %lant of

HR P&4$-$,( )% EHES In simple terms, an organi)ationFs human resour!e management strategy should maximi)e return on investment in the organi)ationFs human !apital and minimi)e finan!ial ris,' uman 0esour!es see,s to a!hieve this +y aligning the supply of s,illed and 7ualified individuals and the !apa+ilities of the !urrent wor,for!e, with the organi)ationFs ongoing and future +usiness plans and re7uirements to maximi)e return on investment and se!ure future survival and su!!ess' In ensuring su!h o+je!tives are a!hieved, the human resour!e fun!tion purpose in this !ontext is to implement the organi)ations human resour!e re7uirements effe!tively +ut also pragmati!ally, ta,ing a!!ount of legal, ethi!al and as far as is pra!ti!al in a manner that retains the support and respe!t of the wor,for!e' K,5 '2#-%$&#( uman 0esour!es may set strategies and develop poli!ies, standards, systems, and pro!esses that implement these strategies in a whole range of areas' .he following are typi!al of a wide range of organi)ationsI

0e!ruitment and sele!tion "resour!ing( 3rgani)ational design and development *usiness transformation and !hange management %erforman!e, !ondu!t and +ehavior management Industrial and employee relations
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uman resour!es "wor,for!e( analysis and wor,for!e personnel data management -ompensation, rewards, and +enefits management .raining and development "learning management( 0

Implementation of su!h poli!ies, pro!esses or standards may +e dire!tly managed +y the managers, other +usiness fun!tions or via third2party external partner organi)ations' L$(%( &' HR P&4$-$,( $# EHES #ttendan!e %oli!y &eave %oli!y Mo+ile %oli!y *usiness %ra!ti!e -orporate #ttire 5omesti! .ravel %oli!y ?oreign .ravel %oli!y ealth Insuran!e %oli!y

fun!tion itself, or the fun!tion may indire!tly supervise the implementation of su!h a!tivities +y

0etrial %oli!y Separation %oli!y o 5omesti! .ransfer o 0elo!ation #llowan!es HR P*&-,/2*, &' EHES 0e!ruitment 8 Sele!tion %ro!ess Indu!tion %ro!ess %erforman!e Management system

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PGD-HRM- SEM4

RECRUITMENT AND SELECTION SOURCES O RECRUITMENT .he !ompany approa!hes the !olleges whi!h are standardi)ed and reputed' Mostly the !ompany has a list of !olleges to go in sear!h of !andidates' .he other important sour!e is the resumes re!eived on the email of the !ompany' 5aily the !ompany re!eives around =;; appli!ations' .hese appli!ations are than short listed where preferen!e is given to the fresher' STEPS IN RECRUITMENT 0e7uest from the !on!erned needy department is !he!,ed' #!!ess the re!ruitment and va!an!y position' .o intimate the note to ta,e approval for the post and its spe!ifi!ations as per the guidelines' 0eleasing of advertisement or going through the resumes re!eived earlier' 0e!eived of the appli!ations for the spe!ifi! post' -alling the !andidates after going through the appli!ations and listing the right appli!ants' 9ritten .est, 4roup 5is!ussion and %ersonal Interviews !ondu!ted' 5uring the interviews, te!hni!al s,ills are the main fo!us points and then the ,nowledge' ?ifteen days after the interview, an offer letter is sent and if the !onfirmation is re!eived the gives P4)-,3,#%. ESSAR DIVIDES RECRUITMENT AND SELECTION INTO 3:

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1. RESHER:= #t this level, !ompany de!ides various norms for re!ruitment and sele!tion' Mainly the !andidate who has minimum <;J !an apply' It is related to graduate, diploma engineering and M*#' &* (,4,-%$&# -&38)#5 @&,( '&* -)382( )#/ &'' -)382( $#%,*7$,?(I 9ritten .est 4roup 5is!ussion %ersonal Interview

2. MIDDLE LEVEL:= ?or the Middle &evel, the !andidate is approa!hed either through the referral of existing employees or add is pla!ed in newspapers and internet' 3. SENIOR LEVEL:= ?or the Senior &evel, the !andidates of rival firms are approa!hed and sele!tion is also done through !onsolation' 4. OTHER ADDITIONAL STEPS:= "I( the !andidate sele!ted is ,ept on the training +asis for = 6ear and than pla!ed as an employee' "II( .here are > days of indu!tion where in : days are for fire and the other : in the plant' "III( .here are external fa!ulties for training' "IV( .he only pro+lem fa!ed +y the !ompany during whi!h expires, whi!h ma,es the tas, time !onsuming' JOB DESCRIPTION AND SPECI ICATION =' .he average age of the employees at Essar is DD years' :' .he average experien!ed re7uired is @ years' re!ruitment is the !onta!t nos'

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D' .he personnel at Essar !onstitute A;J to +e .e!hni!al whi!h means the !ompany re7uires maximum .e!hni!al Staff' >' @2AJ are professionals are no dou+t re7uired in every field and Essar has ,nown this importan!e in respe!t of its total manpower' E' 0emaining =J are others with less s,ills +ut yet needed for the organi)ation' JOB ANALYSIS C JOB DESCRIPTION D JOB SPECI ICATION en!e, it !an +e said that the re7uirements of the organi)ation is very strong, whi!h is refle!ted in its experien!e re7uirement and the .e!hni!al team'

PER ORMANCE APPRAISAL PURPOSE .o !reate and maintain a satisfa!tory level of performan!e' .o !ontri+ute to the employee growth and development through training and self management programmers' .o help the supervisor to have a proper understanding a+out their su+ordinates' .o fa!ilitate fair and e7ual !ompensation +ased on their performan!e' .o ensure organi)ational effe!tiveness through !orre!ting employee for standard and improved performan!e and suggesting the !hange in employee +ehavior' PROMOTIONS Minimum D years residen!y period in !urrent grade in !ase of graduate engineersBprofessionals and a minimum residen!y period in !urrent grades in !ase of diploma engineers and in!ase of others su!h as *'s! and *'!om minimum residen!y period will +e E2< years' .he exe!ution should possess a minimum rating D a+ove during the assessment year and also during the residen!y period of assessment for +eing !ommended for promotion' TRAN ERS .here are : types of transfers followed +y the !ompanyI E1F INTRA:=
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$nder this transfers are done internally among the different +usinesses run +y Essar su!h as from steel to tele!om, from power to oil' E2F INTERNAL:= ere, the transfers are done +etween E%& to E ES et!' REASONS O TRAN ERS R,-*2$%3,#%:= .he !ompany ma,es transfers if there is any re7uirement from one +usiness to another or one plant to another' E384&5,,( N,,/:= If the employee approa!hes, the management for transfer then they are shifted as per the feasi+ility'

LABOUR RELATIONS .o understand the relevan!e in the light of !urrent trends in the industrial relations s!ene in the !ountry' .o provide an in2depth analysis through dis!ussion on various !riti!al issues in the field of industrial relations and I0 &aws' 4rievan!e andling Managing dis!ipline and dis!iplinary a!tion' Measures to improve &a+our 0elations C relations' .he !ontra!t &a+our "0egulation( #!t, =AH;' Management of !ontra!t la+our and the legal pro+lems' #n overview of legal &egislation' 05 approa!h to Employer C Employee

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TRAINING PROGRAMMES .he 0 5epartment organi)es training programmed for the employee within and outside the !ompany +ased on the performan!e of the individual' .he department organi)es training to over2!ome the limitations' It organi)es seminars at training !enters at the learning s,ill department' OBJECTIVES: .o in!rease the produ!tivity and !reativity of an individual' .o ena+le the employee to update their ,nowledge, in!rease the level of performan!e' .o !reate an environment of /9e ?eeling1 and enhan!e the a!!ounta+ility of the people' .o +ring the desired !hange in the organi)ational !ulture and management pro!esses through in !al!ulation of desired values, +eliefs and mindsets in !onsonan!e with the organi)ational needs' *ase on performan!e review and organi)ational studies !on!eptuali)e, design and develop the existing !ompeten!ies, professionals s,ills and learning te!hni7ues amongst the employees for higher level of profi!ien!y and reali)ation of their potential' .he KEssar &earning1 -enter at a)ira has +een formed to fulfill the training and a)ira' .he !enter !aters to the

development needs of the Essar group of !ompanies at In Essar

+ehavioral fun!tional and te!hni!al training needs of the !ompany' eavy Engineering Servi!es training programmers done all over the year' .here are different types of training programmers li,e fun!tional training programmed, 4eneral .raining programmed and .e!hni!al training programmed' In these .raining programmed there are num+er of programmers' .he !ompany provides training !alendar with different programmers and their !odes' .he training is providing for +oth internal and external employees' It is not only for employees it is also providing for the ?reshers and to them who are not in the organi)ation' ?or providing training !ompanies hires fa!ulty from inside as well as outside the organi)ation' .he training should +e important for all the employees at all the levels of the organi)ation' PROCESS:=
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1. B)($(: .he training !an +e identified for the employees generally on the +asis of performan!e appraisal' 2. R,-,$7$#@ A884$-)%$&#I .he appli!ation should +e filled +y the employees whi!h !an +e approved +y E2mail' 3. S&*%$#@ T9, A884$-)%$&#:= .he appli!ation whi!h !an +e re!eived is +eing sort listed' 4. D$7$($&#:= .he 3rgani)ation generally in!ludes maximum :E mem+ers in one +at!h' .hey also in!lude up to DE mem+ers depends on different training programmers' E ES 0 5epartment provides different ,inds of training programmers' .hese training ead,

5ire!tors and Exe!utives trainers' .he appli!ation !an +e re!eived +y written forms and through

programmers are des!ri+ed as a !ode' .he ?un!tional .raining %rogrammed L?M, the 4eneral .raining %rogrammed L4M, .he .e!hni!al .raining %rogrammed' L=M ?un!tional .raining L:M 4eneral .raining LDM .e!hni!al .raining L>M &eadership 5evelopment %rogrammed LEM -reative .raining L<M .raining to S!hool .ea!hers E1F UNCTIONAL TRAINING PROGRAMMES:

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01: M)%,*$)4( M)#)@,3,#% .arget 4roup 5uration of the programmedI I #ll &evels ;: 5ays

3+je!tives of the programmedI 2 .o %romote professional ex!ellen!e in Materials management 2 .o a!hieve desired 7uality with &east %ossi+le expenditure' 2 .o in!rease profit margin +y %roper Expenditure planning' -overage of the programmedI 2 0ole of supply !hain 2 0ole of materials in wor,ing -apital' 2 Various inventory systems for Manufa!turing situations' 2 Spare parts management' 2 0ole of logisti!s2its impa!t on %rodu!tivity' 2 Supplier integration and !ustomer fo!us' 02: I#/2(%*$)4 R,4)%$&#( .arget 4roup 5uration of the programmed I #ll &evels I ;: 5ays

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3+je!tives of the programmedI 2 .o understand the relevan!e the light of -urrent .rend in .he industrial relations S!ene in the !ountry 2 .o provide an in2depth analysis through 0elations and I0 &aw' -overage of the programmedI 2 4rievan!e handling' 2 Managing dis!ipline and dis!iplinary a!tion' 2Measures to improve industrial relations2 05 approa!h of employer2employee relations' 2 .he !ontra!t la+or #!t, =AH;' 2Management of !ontra!t la+or and the legal ' %ro+lem' 03: 0&*A$#@ C)8$%)4 M)#)@,3,#% .arget 4roup 5uration of the programmed I #ll &evels I ;: 5ays

3+je!tives of the programmedI 2 .o ,now the fundamentals of Effe!tive wor,ing -apital and -ash ?low management -overage of the programmedI 2 *alan!e2sheet and !ash Statements' 2 3perating !y!le' 2 Investment and finan!ial poli!y'

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PMS 89$4&(&895 )% E(()* .he %erforman!e management system at Essar is aimed at !reating a !ulture of high %erforman!e and merito!ra!y' .his involves systems and pro!esses that are designed to offer differentiated re!ognition and rewards to employees +ased on %erforman!e against pre2defined goals and expe!tation' 095 /$'',*,#%$)%, P,*'&*3)#-,G .o esta+lish a lin,age +etween %erforman!e and reward *etter the %erforman!e igher the reward

.o motivate good performers to perform even +etter and retain them .o en!ourage and in!entives low and medium performers to raise the level of their %erforman!e

.o !ommuni!ate standards of %erforman!e and !onse7uen!e for %erforman!e or non %erforman!e

095 %9, 6,44( -2*7,G In many natural pro!esses, random variation !onforms to a parti!ular pro+a+ility distri+ution ,nown as the normal distri+ution .his is the most !ommonly o+served pro+a+ility distri+ution in large population .he shape of normal distri+ution resem+les that of a +ell, hen!e the name *ell -urve

H&? $% )884$,( %& P,*'&*3)#-, M)#)@,3,#% S5(%,3(: *orrowing from the rationale used fro natural pro!esses a+ove, when %erforman!es N "o+je!tively 8 relatively assessed( are plotted on a graph, they will most li,ely fall into a normal distri+ution "+ell !urve( due to the natural differen!e that exist in the !apa+ilities B %erforman!e +etween individual in a team'
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Employee %erforman!e !an +e !onsider as relative and often o+served to +e normally distri+uted' 3rgani)ations use the normal distri+ution prin!iple to differentiate, re!ogni)e and reward high performers with the o+je!tive of ,eeping them engaged and to !ontain attrition in this parti!ular 4roup If supervisors were to assess %erforman!es o+je!tively and apply the prin!iple of differentiate to their team, there would +e a little need for applying the for!ed distri+utionI o Errors of lenien!y o *iases or prejudi!es o Ina+ility to differentiate %erforman!e .he *ell !urve may not +e a perfe!t systems, +ut is an optimal one and hen!e most widely used around the world'

T9, R)%$#@ P*&-,(( 9e use a E point rating s!ale at Essar and have %erforman!e la+els that define ea!h rating' 4iven the neutral tenden!y of supervisor to over rate their distri+ution is pres!ri+ed as guidelines that re7uires supervisors to for!e fit their employee and !onform to the norm' .his pro!ess is ,nown as normali)ation pro!ess' %erforman!e rewards are lin,ed to %erforman!e rating' RATING SCALE R)%$#@ H R)%$#@ D,'$#$%$&# %erforman!e 0edefines R)%$#@ D,(-*$8%$&# 0edefines hisBher role' %erforman!e is
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3rgani)ation StandardsB
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-ontinuously ex!ellen!e ex!eeds unpre!edentedB rarely

expe!tations 8 sustains

o+served and sets a new standard or +en!hmar, for the organi)ation

%erforman!e signifi!antly expe!tation Ex!eeds

Is a+le to signifi!antly ex!eed the targetB goal set at the time of goal setting exer!ise' .his should +e dis!ussed at the time of the goal setting exer!ise as a stret!h goal

%erforman!e expe!tation

meets

Is a+le to meet target B goal set at the time of the goal set at that time of the goal setting exer!ise

%erforman!e meet expe!tation

needs

Is una+le to fully meet the target B goal whi!h was set at the time of goal setting exer!ise

improvement B does not

%erforman!e far +elow expe!tation

Is una+le to meet the set target B goal whi!h was set at the time of goal setting exer!ise

RE0ARDS 0ewards would generally +e in the form of in!rements and %erforman!e +onus' owever, the 7uantum and eligi+ility would +e related to +usiness %erforman!e, general inflation, and industry2wise mar,et !omparisons, individual %erforman!e and mar,et !onditions' 9e are in the

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PGD-HRM- SEM4
pro!ess of gathering and assimilating relevant information and the guidelines in this regard shall +e !ir!ulated soon' .he %erforman!e review pro!ess will +e !ompleted +y - 0 after the individual !ompanies have su+mitted their re!ommendations within the guidelines stated a+ove' C&7,*)@, #ll employees on the rolls of the !ompany as an D;th Septem+er :;;A must +e !overed in the re!eive a varia+le pay and in!rement, +ased on their %erforman!e rating' Employees who have joined the !ompany +etween =st 3!to+er :;;@ and D;th Septem+er :;;A and are +eing reviewed for the very first time will re!eive a +onus and in!rement +ased on their %erforman!e rating' Employees who have joined the !ompany +etween = st 3!to+er :;;A and D=st Oanuary :;=; will re!eive a +onus at an assumed rating of D'this rating is not to +e !onsider as a %erforman!e rating and will not +e ta,en into !onsideration in rating dependent pro!esses su!h as M54' 0

STEPS IN PER ORMANCE APPRAISAL PROCESS E384&5,, (,4' )((,((3,#% P,*'&*3)#-, *,7$,? /$(-2(($&# A((,((3,#%! R)%$#@ I P*&3&%$&# R,-&33,#/)%$&# 65 )/3$#$(%*)%$7, I '2#-%$&#)4 (28,*7$(&* N&*3)4$J)%$&# 8*&-,(( S263$(($&# &' *)%$#@ *,8&*% %& CHR U84&)/$#@ I -&332#$-)%$&# &' '$#)4 *)%$#@ MDG 8*&-,(( '4&?
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PGD-HRM- SEM4
I/,#%$'$-)%$&# I %*)$#$#@ &' MDG A((,((&*( $#)4$J$#@ %9, P*&3&%$&# R,-&33,#/)%$&# 4$(%

P*,8)*$#@ '&* %9, 8*&-,(( S-9,/24$#@ %9, MDG 8*&-,(( C&#/2-%$#@ %9, MDG 8*&-,(( C4&($#@ &2% I )##&2#-$#@ MDG *,(24%( E384&5,,( S,4' )((,((3,#% .he pro!ess start with employee self assessment in that employee must !omplete their self assessment on M6%E%tra! +y !ompleting the edita+le text +oxes provided for this purpose for this under ea!h K%# "Key 0esult #rea(BK%I "Key result Indi!ator(' S%,8 $#7&47, $# ESS 1. #!!ess to MYPEP%*)- and go on ESS option on My E7uations 2. .he option is open +etween Mar!h =; to :=st mar!h for two wee,s' 3. Employee were not a+le to !omplete do!umentation of earlier phases "%erforman!e !ontra!t and mid year review B exe!utive 5evelopment review( +efore the window !losed in Oanuary :;=; will +e a+le to do so as soon as the window opens for the annual review pro!ess' 4. 3n!e self assessment is !omplete anf su+mitted, the do!ument is sent to the administrative supervisor with an email intimation informing himBher of the same'

P,*'&*3)#-, *,7$,? /$(-2(($&#( .he next step in pro!ess flow is the most !ru!ial one C the %erforman!e review

dis!ussion' 9hile the num+er of supervisor s!heduling formal review dis!ussions with their employees is !ertainly on the rise, * 0 must ta,e the lead and play a a!tive role in ensuring =;;
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PGD-HRM- SEM4
J !ompleting status' Sin!e this is an offline pro!ess, monitoring !ompletion of this parti!ular step in the pro!ess may not +e easy' .hus, the %erforman!e review dis!ussion is not a forum to dis!uss rating +ut a platform for feed+a!, and !oa!hing in that the responsi+ility of supervisor is to give +oth good as well as negative feed+a!, to employee' A((,((3,#% K R)%$#@ K P*&3&%$&# R,-&33,#/)%$&# 65 )/3$#$(%*)%$7, I '2#-%$&#)4 (28,*7$(&*( aving !ondu!ted the %erforman!e review dis!ussion with the employee, the supervisor must now do!ument hisBher final assessment of the employees %erforman!e on M6%E%tra!' ?or thatI 1. #!!ess to M6%E%tra! fro supervisor !ompleting assessment and rating will +e through the ESS option on My E7uations " and not the mass option as in previous phases(' .he online do!ument now !ontains the self assessment !ompleted +y the employee' 2. Pualitative assessment must +e !ompleted on M6%E%tra! in the edita+le text fields provided for the supervisor under ea!h K%#BK%I' 3. Next, the supervisor must !omplete re!ording hisBher assessment of the employee in the !ontext of the Essar !apa+ilities in the following ta+' 4. .he supervisor will now need to assign a rating on the E point rating s!ale used at Essar'* 0 must ensure that all supervisor r are aware of the rating distri+ution to +e adhered to, so as to assign rating in a!!ordan!e with the norms' H. .his se!tion also has a provision for !apturing promotion re!ommendation' .he supervisor must !omplete this se!tion as well +efore su+mitting the online do!ument to the next parti!ipant In the pro!ess, i'e' the fun!tion supervisor, if any or the reviewer' A((,((3,#% K R)%$#@ K P*&3&%$&# R,-&33,#/)%$&# B5 R,7$,?,* .he reviewer re7uire to do!ument is Bher remar,s on the employees %erforman!e,
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PGD-HRM- SEM4
%romotion re!ommendation and .he %erforman!e rating'

5is!ussion of rating is an offline a!tivity and in!ludes the reviewer and the supervisor' .he following must +e ,ept in mindI * 0 must provide the supervisor with all relevant information !on!erning all eligi+le team mem+ers whose ratings are to +e dis!ussed with the reviewer' It is re!ommended that this dis!ussion in!lude all dire!t reports of the reviewer who will dis!uss %erforman!es and ratings of employees reporting in to them' Su!h an open dis!ussion in!lude all dire!t report have the opportunity dis!uss and understand %erforman!e registered +y all team mem+ers "and not just %erforman!e of their own team( will promote transparen!y and fairness I n the rating pro!ess' .he reviewer, when finali)ing rating of the entire team, must ,eep in mind the rating distri+ution norms to +e adhered to' $pon !ompletion of the rating finali)ation pro!ess of his B her team, the reviewer must now !omplete do!umentation on M6%E%tra!' #!!ess to M6%E%tra! for the reviewer will +e through the ESS option on My E7uation'

N&*3)4$J)%$&# P*&-,(( Normali)ation of rating is important in minimi)ing rater +ias, rating tenden!ies of supervisor vary from Kvery lenient to Kvery harsh and employees reporting to them experien!e the impa!t of these variations' .his impa!t +e!omes !ru!ial when employees re!eive %erforman!e +ased remuneration B rewards' Normali)ation, therefore, is intended to introdu!e greater o+je!tivity in the %erforman!e management pro!ess of an organi)ation'

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PGD-HRM- SEM4
Normali)ation is oftentimes viewed as a !ontroversial pro!ess as it uses a for!ed an,ing

method to !ompare the relative %erforman!e of employee su!h that rating !onform to an assigned rating distri+ution norm' Salient features of the normali)ation pro!essI #lways done in !onjun!tion with a third, o+je!tive person "the reviewer( who has a larger !ontext than the supervisor for !omparing %erforman!es' Is done +y !omparing the %erforman!es of individuals +elonging to the same +rand, same fun!tion, same department, et!' $ses various !riteria for differentiation in!ludingI o Impa!t of %erforman!e on +usiness results, o *ehaviors displayed in the !ourse of dis!harging duties, o Extent of stret!h in %erforman!e registered, et!' o 5one using the for!ed ran,ing method' .he pro!ess that is followed +y the reviewer and hisBher dire!t reports when dis!ussing and finali)ing rating of the entire team is also normali)ation'

S263$(($&# %& *,8&*%( %& CHR ?inal %erforman!e ratings after the normali)ation pro!ess must +e signed off as followsI ?irst +y the immediate supervisor .hen +y the 35s Next +y the * 0 head

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PGD-HRM- SEM4
?inally +y the +usiness head $pon sign off +y the +usiness head, * 0 will prepare the final summery ",nown as form :#( in the pres!ri+ed format, as !ommuni!ated +y - 0 .he form :#, !ompleted in all respe!ts, must then +e forwarded to - 0' If the rating distri+ution su+mitted is in line with norms set, the 4roup wide data is su+mitted to the 4roup Management -ommittee "4M-( fro approval' - 0 analyses the 4roup wide data and prepares rating analyti!al that in!ludeQ *and wise analysis #ge wise analysis .enure wise analysis Experien!e wise analysis #nalyti!al on !onsistent high performers #nalyti!al on !onsistent under performers

U84&)/$#@ I C&332#$-)%$&# &' '$#)4 *)%$#@( o $pon - 0 approval, final ratings must +e !ommuni!ated to supervisors who will +e advised to !ommuni!ate the same to their employees within a : wee, window, prior to the ratings +eing uploaded on M6%E%tra!' o * 0 %MS !onta!t must then upload final ratings on M6%E%tra!' o 3n!e uploaded and the pro!ess has +een flagged off as K!losed on M6%E%tra!, final ratings will +e visi+le to the employees under the Kfinal rating ta+'

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PGD-HRM- SEM4
MDG P*&-,(( I/,#%$'$-)%$&# I %*)$#$#@ &' MDG 8*&-,(( 9hen the ratings are +eing finali)ed in the month of #pril, the * 0 M54 !oordinator must +eing, the pro!ess of identifying the pool of M54 #ssessors who will parti!ipate as panelists in the M54 pro!ess' Important point must ,ept in mind when identifying #ssessorsI o Should prefera+ly have +een an M54 #ssessors in previous year and a!tively parti!ipated in the various rounds o Should prefera+ly have attended the Essar !apa+ilities wor,shop and should have a through ,nowledge of the Essar -apa+ilityB!ompeten!y framewor,' o Should prefera+ly have attended a -ompeten!y -ased Interviewing "-*I( wor,shop and should +e adept a t evaluating !andidate +ased on relevant !ompeten!ies identified' o Should +e in the levels M2;= to M2;E o Should +elieve in the pro!ess, +e genuinely interested in people and have a good interviewing s,ills' 3n!e identified, the * 0 M54 !oordinator must re7uest a !onfirmation from the potential #ssessors for hisBher parti!ipation in the M54 pro!ess' $pon re!eiving !onfirmations, the first of identified #ssessors must then +e forwarded to - 0 #ll first time #ssessors must +e s!heduled to attend the M54 #ssessors training session as announ!ed +y - 0 Experien!e #ssessors may attend the M54 #ssessors training for new #ssessors,

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PGD-HRM- SEM4
If they wish' 3r they may attend a refresher program as announ!ed +y - 0' $#)4$J$#@ %9, 8*&3&%$&# *,-&33,#/)%$&# 4$(% #dministrative supervisor, fun!tional supervisor and reviewers are all re7uired to re!ord their re!ommendation for promotion for the employee +eing assessed' 0e!ommendations are to +e made +y sele!ting a time2 frame in whi!h the #ssessors +elieve the employee must +e promoted' Employees who have +een re!ommended for a promotion "where the time2frame re!ommended is Kimmediate( must +e in!luded in the %romotion 0e!ommendation list only after * 0 M54 !oordinators ensure that the promotion eligi+ility !riteria are met' .he list of employees, in your +usiness, re!ommended for immediate promotion will +e availa+le as a report on M6%E%tra!' ?rom all su!h re!ommended employees, the * 0 M54 !oordinatior will +e a+le to generate the promotion re!ommendation forms and individual summery sheets from the M6%E%tra! appli!ation' Eligi+ility !riteria are announ!ed as part of the promotion 4uidelines ea!h year' * 0 M54 -oordinator must ta,e every !are to ensure that !andidates on the list meet these !riteria' Ex!eptions will also +e part of the guidelines' 3n!e the list is finalised, it must +e presented to the *usiness ead for approval' #fter approval, the %romotion 0e!ommendation list, along with duly !ompleted %romotion 0e!ommendation ?orms and ISS "and any other supporting do!ument re7uested(, is to +e sent to - 0' P*,8)*$#@ '&* %9, 8*&-,((

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PGD-HRM- SEM4
*usinesses M54 !oordinators must do the following as preparatory wor, for the M54 pro!essI 4ain !omplete !larity with respe!t to the %romotion %oli!y B 4uidelines for :;=; ?amiliari)e themselves with the M54 pro!ess, a!tion plan, !onstitution of panels, formats to +e used, et!' $nderstand ea!h of the assessment pro!esses, e'g' E2?it, 4roup 5is!ussion, et!' and how ea!h of these assess the various Essar -apa+ilities .hey must ensure they attend a M54 !oordinators +riefing session !ondu!ted +y - 0 learning' *usiness M54 -oordinators, on!e familiar with the pro!ess and a!tion plan, must organi)e and !ondu!t *riefing Session for all M54 parti!ipants a!ross lo!ations' .he o+je!tive of these sessions is to orient the parti!ipants with the pro!ess they will re7uire to go through and to allow them to prepare to the extent possi+le, enhan!ing their !han!es of su!!ess' 9herever re7uire, - 0 learning S%3-s will +e glad to !o2animate B !ondu!t these sessions' Sin!e the M54 pro!ess is a !om+ination of a large num+er of varia+les vi)' #ssessors,

type of pro!ess, level of employees, et!', the +usiness M54 -oordinator must maintain a preparation !he!,list li,e list of assessors, s!hedule of M54 %ro!ess, time frame, parti!ipant list and their eligi+ility !riteria et!' S-9,/24$#@ %9, MDG P*&-,(( #fter re!eiving the !onfirmation of the parti!ipant list from - 0, the * 0 M54 -oordinator must send a wel!ome email to M54 parti!ipants that !ontains the s!hedule

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PGD-HRM- SEM4
.he E2?it test, must !ondu!ted +y external agen!y, is !oordinate +y - 0, however, all !ommuni!ation with the M54 parti!ipant in!luding sharing of E2?it test lin,, !ommuni!ating the timelines and guidelines is to +e driven +y * 0 in !lose !oordination with - 0 .he written test is !ondu!ted +y - 0, however, all !ommuni!ation with the M54 parti!ipant in!luding sharing of E2?it test lin,, !ommuni!ating the timelines and guidelines is to +e driven +y * 0 in !lose !oordination with - 0 5rawing up the 4roup dis!ussion and %ersonal Interview s!hedule !an +e a !hallenge for the * 0 M54 -oordinator, espe!ially when the num+ers are large' #ll panel must !onsist of at least D 7ualified and trained M54 assessors ,of whi!h one assessor must +e a senior * 0 mem+er "also 7ualified and trained(' .he other : assessor on the panel are line managers, from the same *usiness 4roup or from the another +usiness 4roup' .he 4roup 5is!ussion must +e s!heduled with a >E minutes timeline for ea!h 4roup "in!luding %ro!ess and preparation time(' .he personal interview must +e s!heduled with a HE minute timeline for ea!h parti!ipant "<; minute for %I and =E minutes for preparation('

C&#/2-%$#@ %9, MDG 8*&-,(( .he smooth !ondu!t of the M54 pro!ess will +e dependent largely on how well the pro!ess was s!heduled and resour!ed' ?ollowing are +riefing points for M54 #ssessorsI G,#,*)4

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PGD-HRM- SEM4
#' .hey must have to read up and familiari)e themselves with the =: an!hor !ompeten!ies "Essar !apa+ilities framewor,( +y referring to the %ENN3- sheet availa+le' *' -onta!t the pro!ess !oordinator "* 0 B$ 0( for 7ueries B !on!erns +efore B during B after the pro!ess B a!tivity -' Explain that ea!h exer!ise in the M54 pro!ess is !umulativeQ no poor s!ore on any one pro!ess will dis7ualify a !andidate' 5' #ssessor should not have had any dire!t lin, with the !andidate' In !ase you have +een the supervisor B reviewer of the person, or have a !lose personal relationship with the person, de!lare this and sit out refrain from assessing person' E' #void ex!essive pro+ing of the !urrent jo+ responsi+ilities and fo!us on demonstrated !apa+ilities' ?' .ry and avoid as,ing personal 7uestions G*&28 D$(-2(($&# #' 0 assessor from a parti!ular +usiness will not +e on the panel for a !andidate from the same +usiness' *' 4roup 5is!ussion #ssessors will refrain from any !ommuni!ation with !andidate "no using their names, nor en!ouraging them( in fa!t, ensure that !andidate are given only num+ers as identifi!ation and are not displaying name !ards' -' 3+serve the !andidate +ehavior as well as their ,ey words related to the Essar !apa+ilities' 5' #s, the one who may spea, at least to sum up give him B her !han!e to !ontri+ute'
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PGD-HRM- SEM4
E' 5uring the 45, write down !omment in -omment Se!tion and ta,e a !opies of it whi!h will help in s!oring at last' ?' #fter the 45, #ssessors must have a 7ui!, dis!ussion' 4' Ea!h #ssessor will s!ore the !andidate that they were assessing' It is N3. joint assessment and there is no need for !onsensus' I#%,*7$,? #' *efore !andidate enters, review the !andidates E2?it report, the individual summery sheet, the promotion re!ommendation form, and identify 7uestions from Puestion *an, "provided in M54 ,it(' *' En!ourage !andidates to give their +est during dis!ussion -' ?ollow the !ompeten!y approa!h for interview' 5' #t the end of the day * 0 M54 !oordinator must ensure the following .hat all assessment sheets have +een !olle!ted and that none are missing .hat all assessment sheets have names, have +een signed and are !omplete' If not, the * 0 M54 !oordinator must revert to the !on!erned panel mem+er and ensure that same is done' Su!h an a!tivity +e!omes easier if this !he!, is done at the end of the same day as opposed to doing several days later when the !oordinator may B may not a+le to re!all !ertain details'

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PGD-HRM- SEM4
-omplete entering the s!ore from the assessment sheet in a !onsolidated s!oring sheet that will +e forwarded to - 0 at the end of the pro!ess'

C4&($#@ &2% I )##&2#-$#@ MDG *,(24%( #t the end of !ondu!ting the M54 pro!esses managed +y * 0, namely 45s and %Is, the * 0 M54 !oordinator must !onsolidate all s!ores in a format pre2 determined and shared +y - 0'this is important so that the M54 lead in - 0 is a+le to !onsolidate 4roup wide s!ores and arrived at the final s!ores of parti!ipants +ased on formulae' .he a+ove pro!ess must +e !arried out with great !are and !aution given that a single digit num+er !an +e the differen!e +etween a parti!ipant !learing or not !learing the pro!ess' 3n!e the s!ore have +een su+mitted to - 0, the M54 lead in - 0 will prepare a 4roup wide !onsolidated s!oring sheet' *ased on a !ut off s!ore approved +y the 4M-, the list of M54 !andidate who have !leared B not !leared the pro!ess is prepared and shared with respe!tive * 0 heads' * 0 now must initiate the pro!ess of !ommuni!ation the M54 results to the parti!ipants, in line with guidelines shared +y - 0' # standard !ommuni!ation for this purpose is to +e used' In !ase of su!!essful !andidates, S#% data must +e updated with !hanged level and any other !hanges in role, et!' #nd at last +ut not least must than, the M54 assessor for their parti!ipate their support and their valua+le time'
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PGD-HRM- SEM4
COMPLETING THE ANNUAL REVIE0 PROCESS ON MYPEP%*)S%,8 : 1 S,4' )((,((3,#% 65 E384&5,, #!!ess through ESS 5o!ument flows to #dmin Supervisor upon !ompletion

S%,8 : 2 P,*'&*3)#-, *,7$,? /$(-2(($&# 6,%?,,# ,384&5,, )#/ )/3$# (28,*7$(&* %ersonal intera!tion, giving 8 re!eiving feed+a!, 3ffline pro!ess that te!hnology !ant repla!e

S%,8 : 3 A((,((3,#%! R)%$#@ I P*&3&%$&# R,-&33,#/)%$&# 65 A/3$#K $33,/$)%, (28,*7$(&* #!!ess through ESS 5o!ument flows to #dmin Supervisor, if any, upon !ompletion

S%,8 : 4 A((,((3,#%! R)%$#@ I P*&3&%$&# R,-&33,#/)%$&# 65 '2#-%$&#)4 (28,*7$(&* #!!ess through ESS 5o!ument flow to 0eviewer upon !ompletion

S%,8 : H A((,((3,#%! R)%$#@ I P*&3&%$&# R,-&33,#/)%$&# B5 R,7$,?,* #!!ess through ESS End of 5o!umentation, start of Normali)ation

S%,8 : L $#)4 R)%$#@ D$(84)5,/ )% %9, ,#/ &' 8*&-,(( ?inal 0ating will +e displayed for employees to view under the final rating

CONCLUSION
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PGD-HRM- SEM4
3rgani)ations need some means of ensuring performan!e standards are +eing a!hieved and o+je!tives are +eing met' .hey also need to plan for the future +y setting organi)ational o+je!tives' .hese should +e a!hieved through personal o+je!tives agreed at the appraisal' .his is vital for all employees in order to maintain a !ompetitive position, and it is important that the method for doing this is su!!essful' #ll the material in the KS,ills of #ppraisal and %erforman!e 0eview resour!e is dedi!ated to that end' owever, underlying the methods, pra!ti!es and te!hni7ues there must +e !ru!ial managerial thoughts, attitudes and a!tivities' #s an introdu!tion to the training a!tivity, the parti!ipants wor, in groups to dis!uss what an effe!tive performan!e review s!heme needs' .heir suggestions for a su!!essful s!heme are dis!ussed and they are then given a list of re7uirements for !omparison and dis!ussion' Next, the parti!ipants review what an appraiser should do to ma,e sure a performan!e review s!heme is su!!essful' .he training a!tivity !loses with a review of ,ey learning points and a final o+servation of performan!e review appraisal' %erforman!e Management is a term used to improve team performan!e, +ased on the prin!iples of measurement, appraisal, a!tion and monitoring' owever, it !an +e manifest in very different forms depending on whether the aim is to further improve good performers, or deal with underperforman!e' %erforman!e Management !an also apply to individuals, teams, groups or organi)ations'

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