Summer Training Project Report

On
A PROJECT REPORT ON PERFORMANCE APPRAISAL AT BHEL, JHANSI

Submitted In Partial Fulfillment of the requirement for the award of the
Degree of
MASTER OF BUSINESS ADMINISTRATION
Of
Mahamaya Technical University, Noida
(2011)
SWEKSHA SAHU
Roll no-1021270033


UNITED INSTITUTE OF MANAGEMENT
GREATER NOIDA

DECLARATION

I, Sweksha Sahu a bonafide student of UNITED INSTITUTE Of
MANAGEMENT GREATER NOIDA would like to declare that the
project entitled PERFORMANCE APPRAISAL AT BHEL,
JHANSI submitted a partial fulfillment of MASTER OF
BUSINESS ADMINISTRATION is an original work of mine. And it
has not been submitted to any other university.





PLACE:-
DATE :- SWEKSHA SAHU


(i)
ACKNOWLEDGEMENT

This project is not definitely my exclusive work but several persons have contributed
towards it. I pay my gratitude to all whose guidance and idea have been helpful in
preparing this report.
During this course of study many useful suggestion & constructive criticism came
across which really help a lot in giving this project a professional look.
I am immensely grateful and express my sincere thanks to Dr. Rajeev Sijariya
(Principal)
MBA department, UIM and my faculty guide, for providing me timely help,
Encouragement, suggestion and required knowledge about my project.
I am really thankful, to all the employees of BHEL JHANSI. Their love and
guidance was encouraging throughout the training period.
I am grateful to Mr. Vikramaditya (HR executive) who encouraged & supported me
a lot for providing me opportunity to undergo the training and also I express my
thanks to all members of HRD for their help and cooperation.
Further more, I am really thankful to my uncle Mr R.C Saxena (Sr. Engg TRE) for
his support & guidance that help me throughout the project.
(ii)
PREFACE
A major concern of every HR manager should be contribute possibility towards the
achievement of the organizations objective. Organizational effectiveness if often equated
with human managerial efficiency as a HR manager. You can sure organizational
effectiveness only by guarantying the full utilization of human resources through the
individual employees under the increase the performance himself. Hence the need for
measuring and monitoring the performance of employees is inevitable.









(iii)

TABLE OF CONTENTS
1. Table of Contents
Chapter 1. Introduction of the Topic 1-2
Chapter 2. Scope & Objectives 3
Chapter 3. Literature Review 4-46
Chapter 4. Company Profile 47-55
Chapter 5. Research Methodology 56-60
Chapter 6.
- Theory to the Topic 61-64.
- Data Analysis & Interpretation 65-80
- List of Findings 100
- Conclusion 101
Chapter 7. - Limitations 103
- Suggestions/ Recommendations 104-105
2. Bibliography/ List of References (v)
3. Annexure (s) (vi)

(iv)
CHAPTER-1
Introduction-
Performance appraisal is something which is not very old for the government organizations.
Even today railways, etc have just confidential reports as performance appraisal tool, but now
even the public sector units have introduced various methods to appraise the workers for their
performance. Bharat Heavy electronics limited( BHEL) is just one of those public sector units
which have evolved greatly in terms of the use of various human resource related activities,
performance appraisal being one of them.
In the past ten years BHEL has introduced various methods for implementation of a best
performance boosting technique and now is quite successful too in its goal of devising a
performance management system which is fair and acceptable by all people whether the
supervisors, artisans, executives or the top management. Presently the technique used has been
widely accepted and is successful too in achieving its goals of motivation and employee
satisfaction, for only a satisfied employee can perform the best.
BHEL is the largest engineering and manufacturing enterprise in India in the energy-
related/infrastructure sector, today. It was established more than 40 years ago, ushering in the
indigenous Heavy Electrical Equipment industry in India - a dream that has been more than
realized with a well-recognized track record of performance. The company has been earning
profits continuously since 1971-72 and paying dividends since 1976-77.
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BHEL caters to the core sectors of the Indian Economy, viz. Power, Transmission, Industry,
Transportation, Renewable Energy, Oil & Gas and Defence. The high level of quality &
reliability of its products is due to the emphasis on design, engineering and manufacturing to
international standards by acquiring and adapting some of the best technologies from leading
companies in the world, together with technologies developed in its own R&D centres. To get
such standards and quality it requires a motivated and satisfied workforce, and to get such a
workforce it requires an effective performance appraisal scheme.
This organization has evolved its performance management scheme, earlier there was just
confidential reports for all the employees, now the system is quite different there is the system
divided into three: for artisans and supervisors the confidential reports continue to be used, then
for the executives and others there is this web based e-map system also known as Moving ahead
through performance which has got various other tools which have changed the picture of the
performance management system at bhel.
In this project the performance appraisal scheme of BHEL is scrutinized along with the evolution
of the techniques used, also the improvement introduced or a policy omission, and most
importantly the effectiveness of this performance management system followed in the company
throughout the country.

2

CHAPTER 2
SCOPE AND OBJECTIVES

The objectives of this project are:
1 The major objective of this project is to evaluate the present performance appraisal scheme in
BHEL.
2 The effectiveness of the performance appraisal system of the organization.
3 To check the satisfaction level among the employees
4 To study the changes over the years in the scheme
5 The reasons and results of introducing new features in the system
6 BHELs performance managing system with respect to other government organizations.






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Chapter 3
Literature Review
Performance appraisal -
Performance appraisal is one of the oldest and most universal practices of management. It refers
to all the format procedures used in working organization to evaluate the personalities and
contribution and potential of group members.
Performance appraisal is defined as a structured formal interaction between an employee and
his sub-ordinate that usually take the form of a periodic interview (annual or semi- annual or any
other periodicity fixed by the management) in which the work performance of the sub- ordinate
is examined as well as opportunities for improvement and skill development. In BHEL too, the
same process occurs employees get evaluated by their immediate seniors the evaluation acts as a
basis of their promotions and the incentives they get. There is a strategy used at BHEL according
to which the employees are divided into two categories; first to represent the artisans and the
supervisors and the second category of executives and top management, while supervisors get
their annual confidential report as a measure of their performance and the incentives hardly get
affected the second category gets incentives based on their performance which gets evaluated
based on e-MAP( Moving ahead through performance) an online technique to appraise
employees.

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Performance appraisal is known as an important tool of personnel management since it reflects
an evaluative judgment of the traits, characteristics as well as work performance of the
employees on their jobs. Therefore the importance of employee performance appraisal within an
organization is of vital importance from the point of view of employees- both subordinates and
supervisors. Employee can earn more income and better employment privileges by better
performance measured by some appraisal plan. These appraisal plans serve as a basis for
counseling employees about their strength and weaknesses for improving their productive
efficiency and for better superior employee relations by developing material confidence.
Appraisal plans are also of great importance in the area of training, development, compensation,
handling grievances and disciplinary cases.
In words of Mc Gregor:
Performance appraisal plans are designed to meet three needs, one of the organization and
other of the individual, namely
To provide systematic judgment to back up salary increase, transfer, demotion or
termination.
They are means of telling subordinates that how he is doing, and Suggestion needed
change in his behavior, attitude skills or job knowledge.
They are used as a base for coaching and counseling the individual by the superior.


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I chose this topic for the project work because the performance appraisal system of BHEL has
drastically evolved in recent years, therefore to evaluate the basic entries criteria of the
employees performance in the company. It is necessary to know the actual conditions and the
employee satisfaction in the industry.
More over it is learnt that BHEL is the first public sector undertaking that has gone for electronic
method of performance measurement through the E-MAP (Moving ahead through performance)
But before going any further it is important to know the importance of the performance appraisal
system, which is as under:
Performance Appraisals is used by many organisations due to the following Reasons:-
1) Administrative- Performance Appraisal commonly serve as the administrative tool by
providing employers with the rationale for making many personnel decisions.
2) Employee Development- Performance Appraisal for employees development purpose
provides feedback on employees performance. Appraisal data can also be used for
employee development purpose in helping to identify specific training need for
individuals.
3) Programme Assessment- Programme Assessment requires the collection and storage of
Performance Appraisal data for number of uses. The records can show how effective
recruitment, selection and placement have been supplying a qualified workforce.
4) To create and maintain a satisfactory level of performance.
5) To bring about better operational and business needs

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6) To facilitate fair and equitable compensation based on performance
7) To help the superiors to have a proper understanding about their subordinates.
8) To provide information useful for manpower planning by identifying the employees with
the potential for advancement.
9) To facilitate for testing and validating selection tests, interview techniques through
comparing their scores with performance appraisal ranks.
Apart from these, the biggest advantage is to motivate the workforce, keeping in mind the
growing attrition rates and the employee dissatisfaction among the employees; the HR
professionals are approaching and using the performance appraisal as a fuel to motivate
employees. The latest trend being followed by the HR professionals is to use the
performance appraisal and review process as a motivating mechanism.
One of the most motivating factors for the employees, in the Performance appraisal processes is
to receive a fair an accurate assessment of their performance. Inaccurate evaluation is one reason
because of which most employees dread going through performance appraisals. An employee
always expects his appraiser to recognize and appreciate his achievements, support him to
overcome the problems and failures.


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The discrepancies and the inaccuracies in the performance review can demotivate the employees,
even if there has been an increase in the salary. Such inaccuracies can kill the innovating and risk
taking enthusiasm and spirit in the employees. Similarly, inaccurate reviews with no hike in
compensation can increase the attrition rate in the organisation, forcing the employees to look
out for other options.
Keeping these things in mind the top management of BHEL has introduced the E-MAP system
which ensures transparency to a great extent, hence the motivation level of the employees
increases seeing such a transparent system thus it could be said that the present system provides
transparency at such a level which nobody ever had.

Fig: 2.1

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The above diagram describes how important is it to get a fair evaluation for motivation, an
employee with good performance if does not get good incentives, would definitely get
demotivated and his working quality would also decrease; on the other hand if the performance
gets fairly rated resulting in good incentives, the person would be highly motivated, would work
harder, there is another way around too even if a person is being payed good but performance
review is inaccurate there would be decrease in motivation again.
Performance appraisal at BHEL-
BHEL has been working to improve the performance appraisal system ever since its beginning,
unlike the other public sector units this organization is way ahead of its other counterparts, its
system is like that used in other organizations of the private sector, way ahead in technology.
The features which make it remarkable are:
Its technology, the performance appraisal system has gone all online, gone are the days in
which people had to dug their heads into papers now people can check out their
performance scores online.
It is a systematic way of appraisal, people have different grades, they have different work
and so have to be differently rated for their performance; therefore the whole system is
divided into two categories, first category depicting the supervisors and the artisans and
the second category consisting of executives and the top management.

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It is a fair system for appraisal, as the lower grade people are not much into technicality
so their incentives should not be dependent upon their performance in terms of ideas, etc
for they would do what they are asked to by the executive, thus they get normal bonuses
only the promotions do get affected by these annual confidential report containing the
details of the evaluation done on their performance.
The executives are the people who take major decisions and see through the normal
processing of their respective departments, thus their incentives are performance based,
and they are rated as per their achievements and the type of work they performed.
To seek that the companys objectives get fulfilled and the organization functions well,
there is a need to rate the efforts of a team, a department, a sector , a unit and so their
exists a balance scorecard system in which rather than individuals, whole of the
organization is responsible for gaining points.
These are thus some of the features of the BHEL performance appraisal system, which make it
whole lot of better than the other techniques..
Cascade refers to the process of aligning organizational goals to individual goal in a series of
step. This is done by translating the goal that are identified at organization level in to business
sectors, unit functional and departmental level scorecard and onward in the form of KRA to
individuals who form a part of these unit. Cascade of unit /department level goals to individual
KRA ensures alignment and that the individual and group objectives and results contribute
directly to achievement of organizational results
10
BHELs performance targets:
The major objectives on which performance is graded could be divided into four categories:
1. To gain financial gains, that is bringing profits
2. Customer satisfaction
3. Proper processing
4. Good strategies to enhance the organizations capability
Organizations performance


Unit performance sector performance

Department performance
As given above the organizations performance depends upon the performance of its units and
sector and each sectors performance depends upon the departments under it, this mechanism is
dependent upon the balance scorecard, which is used to give details of the performance of the
sector, departments units and ultimately the organization as a whole. Balance scorecard is used to
show the performance of each unit rather than individual people.
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People involved in the system-
SUPERVISORS
This class of employees is higher than the artisans and lower than executives. The supervisor is
responsible for passing of work orders from the executives and then making sure that the
workers work according to the requirements of the customers. The supervisors are ranked from
S1 toS7 under different grades. Sometimes direct appointment is also made. The performance
appraisals systems used for the supervisors are the ACRs. The supervisory cadre is classified as
under:
Charge man S1
Assistant Forman S2
Forman S3
General Forman S4
Executive Forman S5
Senior executive Forman S6
General executive Forman S7

EXECUTIVEs
The executive class of any industry is responsible for its proper functioning and long term
benefits. Executive class has to be exhibit various traits like leadership, motivation,
communication skills, discipline, job knowledge, managerial capabilities etc.
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to set an example to not only the sub-ordinates but also to the colleagues and the authorities.
They manage the workers, supervisors and other supporting staff and are responsible for the
proper growth, public relations, customer satisfaction and thus market value of the firm on
national and internationals platforms. They utilize not only their technical knowledge but also
their managerial skills. The executive class is divided into following grades:
Engineer/ officer E1
Senior Engineer/ officer E2
Deputy Manager E3
Manager E4
Senior Manager E5
Deputy General Manager E6
Senior Deputy General Manager E6-A
Additional General manager E7
General Manager E8
Executive Director E9
Thus we see that the executive class goes to the top right from the engineers to the top
management of the company.


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Performance appraisal of the supervisors and below-
There is no special technique to describe the performance of the supervisors and artisans, this
category does not require much of innovation,

and they work as per what is told to them by their superiors belonging to the executive category.
The incentives are not dependent upon the performance, they get bonuses as per what is
promised by the organization, and the only way in which their performance gets rated is only
through the annual confidential report. The annual confidential report gets filled by the
immediate superior and is reviewed at the end of the year. Although it has no affect on the
bonuses, but does it affect the promotions.
Annual confidential report (ACR)
From the time of its establishment BHEL has adopted the system of Annual confidential report.
It is an annual report about an employee which is confidential, the basic intention was to keep a
systematic record of the employee traits, behavior and performance towards his job and the
organization as a whole. This is the form of the appraisal system which is used to evaluate the
performance appraisal of the:-
Workers working in the organization
Their supervisors.
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ACR system was in operation upto 2000-01 for all the employees, after that the appraisal system
for executives got converted to the E-MAP technique, and now it is meant only for superiors and
below.
In the system of ACR there are three parties:-
Appraisee
Reporting officer
Reviewing officer
Appraisee is the employee himself, whose assessment is to be done. It is the person who is
going to be rated.
Reporting officer is the immediate superior of the appraiser and he gives marks to the
employee.
Reviewing officer is the Reporting officers superior, who appraises the reporting officer and
reviews the report given by the reporting officer about his junior.
If the performance appraisal of an employee is to be done, he will be assessed by his immediate
supervisor or the reporting officer who will grade him and then the report would be reviewed by
the appraisers superior. According to the performance the employee is given feedback by his
superior but as it is quite confidential the employee remains unaware of what has been his rating,
this flaw has however been removed as these confidential reports have gone online now, the
employees now know what they have been rated and on what parameters, thus, they can improve
in those areas in which they have been poorly rated.
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The abilities on which they could be rated are as following:-
Administrative
Technical
Personality
Integrity
These are the areas in which rating is to be done:
Administrative, to check out the leadership and managing quality of an employee.
Technical, to seek the technical efficiency
Personality to check the charisma and behavioral traits of an individual
On the basis of the above qualities/abilities/traits the employee is then categorised in the
following categories-
Outstanding
Very Good
Good
Fair
Poor
Reporting officer grade the employee and puts his signature and seal after this report to his
immediate boss i.e., the reviewing officer. The Reviewing officer carefully considers and states
weather he has accepted those remarks or not. Finally the report is passed to the final accepting
officer whose acceptance is necessary for the report.
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ACR for different category is different and the grading systems also differ to some extent
depending upon their traits (both personal as well as working).
Usually the least grade that the employees get is fair, and then the grading is given as per the
performance throughout the year, it is a common habit of the superiors to grade people in the
good and very good category.
The ACR report consists of two parts the:
The first part contains the personal data of the employee, his present and previous grade,
designation, scale, basic pay, etc.
The second part is to be rated as per certain parameters:
1. Technical ability
2. Administrative ability
3. Personality, dependability and character
4. Assessment of integrity
5. Soundness of opinion & courage in marking decision
There are grades given for each of the parameter given above.
Objectives of ACR
To know about the strength and the weakness of the individual.
To evaluate the managerial behavior and its impact on performance of the industry
Advice to employees so they can make themselves better.
To uncover both suitable and unsuitable personnel.
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To examine the level of performance of the personnel in the industry (BHEL).
To evaluate the performance of employees at their working place.
Creating and maintaining a satisfactory level of performance of employees in their
present job
Fixation of salary, allowances, incentives and benefits.

Drawbacks of the ACR system
Lack of objectivity in appraisal was a common complaint. This was mainly on account of the
following:
1. No provision for performance planning at beginning of year to define WHAT is to be
done and HOW MUCH?
2. No visible co-relation between actual performance and final assessment which was done
basically on Traits & Competencies.
3. No provision for feedback since the system was Confidential. Individuals did not know
where they stood until the time of promotions.
Apart from this there were various other reasons which gave a setback to this confidential
system, which are as such:
The Annual confidential report demands and depends too much on supervisors.
Sometimes certain standard ratings tend to vary widely and unfairly.
Some raters can be tough, and some lenient. Some departments have highly competent
people whereas others have less competent people.
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Personal bias can replace organizational standards. Because of the bias, some non
competent employees may get a favored treatment.
Sometimes there tends to be lack of communication. The employees may not even know
they are being judged. No performance appraisal system can be effective if the appraised
do not know the criteria under which they have been appraised and judged.
This system cannot substitute for sound selection, placement and training programs.
A constructive congenial relationship should exist between the supervisor and his
subordinate. Performance appraisal programs tend to emphasize the superiority of the
supervisor which may be particularly damaging in organizations which strive at
participative organizational climate.
The Remedy:
The major problem faced was that there was hardly any transparency people did not know on
what parameters did they get the grades, everything was so confidential that they were unaware
of what their superiors were grading them on what grounds, but now this problem of excess of
confidentiality is removed by making this system of report online, employees can now check
their CRs online and could also ask their superiors for guidance in case of poor grading. This
online system was introduced last year only, so there is still time to check its effectiveness and
employee satisfaction after the introduction of this change.


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Performance appraisal for the executives and above:
For executives and higher grades there is this e-map system or online moving ahead through
performance, in which people get promotions and incentives based on their performance, which
they could see on the Bhels website, it provides a lot of transparency. This E- map technique
uses a lot of tools for its implementation like KRA master, balance scorecard, differentiation, etc.
Over the years there have been various changes introduced, in order to make this technique even
better. The employee firstly appraises himself that is there is self appraisal found here after
which the report is sent to the superior who gives his remarks, if the superior makes remarks
which the employee does not agree with then it goes to the reviewer, who makes his final
decision.
Before the appraisal there are two most important things to be planned which are as such:
A) Organizations specific policy- Top management within each organization shall develop,
implement and administer a performance management policy. This policy & procedure shall be
tailored to meet the organization within the parameter of this policy. Each policy must reflect the
conscious decision that agency management makes in designing performance management
system. An agency policy must include:-
All of the components of an operative system.
Instruction about how the system will operate using the three parts management
performance process.

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A provision requiring that one of the responsibilities included in each supervisors
and managers work plan is managing the performance of subordinate employees in
accordance with the organization.
Performance management policy and procedure.
Sanctions to be levied by the agency head if all provisions are not met.
Relationships of performance management to other human resource system.
Responsibilities/roles of the organization Personnel.

B) Individual work Plan-Each employee shall have a work plan established at the beginning of the
cycle on an annual basis. A work plan must include the result to be accomplished and the
behavior/skills needed to produce these as well as any special one time projects and/or goals. The
work plan shall be based on each employees position description or an equivalent document
based on job analysis (this would include a generic or specific job description, a listing of job or
responsibilities etc), if no position description exists a job description or its equivalent shall be
written using a job analysis approach. Each employees work plan must also include
expectations, tracking sources/frequency and actual performance. Expectations must be written
at the GOOD level. To be considered substantive at the GOOD, performance expectations
must have one or more indicators for measuring (quality, quantity, timeliness or cost). In order to
be as fair s possible to employees and to ensure that work plans are defensible, supervisors
should also discuss performing at the OUTSTANDING and UNSATISFACTORY levels.
The supervisors managers are responsible for ensuring that expectations for similar jobs across
units reporting to them are consistent and equitable.
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C) Management should endure to establish standard work plans for employees performing the same
work except for the parts of job, which vary. After the work plan is completed at the beginning
of the cycle. It must be signed and dated by the employee, the supervisor, and the supervisors
manager. If changes are made on the work plan during the cycle, the employee, the supervisor
and the supervisors manager must initial date the changes before it is effective. In both of these
cases, the supervisor retains the original and the employee must receive a copy. Unusual
circumstances within certain jobs/classification may require alternative practices to ensure
reasonable requirements and equitable treatment. These situations should be discussed with the
office of personnel so that adjustments may be made.
Key features of E-MAP:
There are various features of this technique which makes it different from others and more
efficient, these features are as such:
Alignment & focus-
Employees performance aligned to the goals of BHEL. Individuals make their own
action plan keeping in mind the organizations goals.

Objectivity
Measuring performance objectively based on targets
defined at the beginning of the year.
Transparency-
Clear and transparent process of target setting and sharing of assessment with
individual, has brought about a lot of transparency.
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Consistency
Consistent application of MAP tools across the
organisation (standard KRAs, Unit of measurement).

Differentiation
Identifying & rewarding high performers, and seeking that the appraiser does not
take the process for granted, for they have a tendency of rating everyone almost
equally through this process bands are made and no two employees of the same
band can get the same rating.

Development
Developing individual competence & capability required for the role, this could
be done through proper training and motivation to employees.


e-Enablement
Bhel has a Web-based system linking over 100 locations, covering around 11,000
executives. Centralised monitoring for effective implementation thus a transparent
and spread to whole of the country system.


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Map tools-
There are various Map tools used to measure the performance of individuals and of the
units or departments itself, these tools are as such
Balance scorecard
KRA masters
Rating scales
Differentiation
Normalization
1. Balance Score Card (BSC)
The Balanced Scorecard (BSC) is a strategic performance management tool for measuring
whether the smaller-scale operational activities of a company are aligned with its larger-scale
objectives in terms of vision and strategy. By focusing not only on financial outcomes but
also on the operational, marketing and developmental inputs to these, the Balanced Scorecard
helps provide a more comprehensive view of a business, which in turn helps organizations
act in their best long-term interests.
The balanced scorecard is a strategic planning and management system that is used
extensively in business and industry, government, and nonprofit organizations worldwide to
align business activities to the vision and strategy of the organization, improve internal and
external communications, and monitor organization performance against strategic goals. The
Balance Scorecard is used for the executive class in BHEL.
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There are certain parameters on which rating is done for each department or unit, etc. then a
cascade is formed, there are certain measures taken in order to achive the targets, these
targets are customer satisfaction, profit and increased capability to produce, so there have to
be certain measures taken in terms of the financial situation that is, the organisation must best
utilize its resources while also gaining profit, besides the process to produce must be efficient
enough to give technical upperhand to the organization over others.










Fig: 2.2 the targets of the balance scorecard
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On the above given parameters the rating is done in terms of objectives, measures, targets and
initiatives.
Perspectives
The balanced scorecard suggests that we view the organization from four perspectives, and to
develop metrics, collect data and analyze it relative to each of these perspectives:
The Learning & Growth Perspective - This perspective includes employee training and
corporate cultural attitudes related to both individual and corporate self-improvement. In a
knowledge-worker organization, people -- the only repository of knowledge -- are the main
resource. In the current climate of rapid technological change, it is becoming necessary for
knowledge workers to be in a continuous learning mode. Metrics can be put into place to guide
managers in focusing training funds where they can help the most. In any case, learning and
growth constitute the essential foundation for success of any knowledge-worker organization.
The Business Process Perspective -This perspective refers to internal business processes.
Metrics based on this perspective allow the managers to know how well their business is
running, and whether its products and services conform to customer requirements (the mission).
These metrics have to be carefully designed by those who know these processes most intimately;
with unique missions these are not something that can be developed by outside consultants.
The Customer Perspective - Recent management philosophy has shown an increasing
realization of the importance of customer focus and customer satisfaction in any business. These
are leading indicators:
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if customers are not satisfied, they will eventually find other suppliers that will meet their needs.
Poor performance from this perspective is thus a leading indicator of future decline, even though
the current financial picture may look good. In developing metrics for satisfaction, customers
should be analyzed in terms of kinds of customers and the kinds of processes for which we are
providing a product or service to those customer groups.
The Financial Perspective - Timely and accurate funding data will always be a priority, and
managers will do whatever necessary to provide it. In fact, often there is more than enough
handling and processing of financial data. With the implementation of a corporate database, it is
hoped that more of the processing can be centralized and automated. But the point is that the
current emphasis on financials leads to the "unbalanced" situation with regard to other
perspectives. There is perhaps a need to include additional financial-related data, such as risk
assessment and cost-benefit data.
Objectives of the Balance Scorecard
Implementing Balanced Scorecards typically includes four processes:
1. Translating the vision into operational goals;
2. Communicating the vision and link it to individual performance;
3. Business planning; index setting
4. Feedback and learning, and adjusting the strategy accordingly.

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The Balanced Scorecard is a framework, or what can be best characterized as a strategic
management system that claims to incorporate all quantitative and abstract measures of true
importance to the enterprise. According to Kaplan and Norton, The Balanced Scorecard
provides managers with the instrumentation they need to navigate to future competitive success.
Many books and articles referring to balanced scorecards confuse the design process elements
and the balanced scorecard itself. In particular, it is common for people to refer to a strategic
linkage model or strategy map as being a balanced scorecard.
Although it helps focus managers' attention on strategic issues and the management of the
implementation of strategy, it is important to remember that the balanced scorecard itself has no
role in the formation of strategy. In fact, balanced scorecards can comfortably co-exist with
strategic planning systems and other tools.
As described above is the cascade of performance through a balance scorecard, through this
tool the company prepares its targets and measures it has to take to achieve those targets, now as
per the companies objectives the units prepare their goals and targets similarly to align the work
as per the unit, each department prepares targets to fulfill the goals of the unit and this ultimately
leads to individuals target setting.
Thus based on the four perspectives described there are ratings given to each unit, department,
sector, etc, to ensure how well it is performing, there are five levels on which rating is done.
There is also a weightage attached with each of the perspective, marks are given for each and
then the grand total is obtained describing the overall performance of that unit, etc.
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2. KRA Master and the performance planning process-
Performance Management System is based on the importance of managing each individuals
work and continuous communication between employees and their supervisors. It ensures that all
employees:
Are aware of what is expected from them.
Are provided with continuous feedback about their performance.
Are provided with provided with opportunities for education, training and development
Are awarded in fair and equitable manner.
It is desirable that each organisation has a system for managing.
The performance process is the sequence of the actions that supervisors and mangers take when
interacting with the employees about their performance. The three parts of the process are:-
b) Planning b) Managing c) Appraising

a) PLANNING- At the beginning of the work cycle, the supervisors and the employees shall
meet to develop the employees work plan. It is the supervisors responsibility to explain
the performance management process to the employees that the employee understands
the importance of his role in the organisation. The purpose of this planning meeting is to
discuss and record the employees current responsibilities/results and behavior/skills, the
expectations that describes successful completion of each one, & the tracking sources.
Behavior/skills are the actions, proficiencies or abilities and employee need to use to
achieve specific results.
29
b) MANAGING- This part of the performance management process includes the day to day
tracking of the employees progress toward achieving the performance expectations. The
supervisors and the employee track performance using the sources & frequency of these
in monitoring as agreed upon and recorded the work plan. This information should
provide the base for specific feedback &discussion. It also includes the interim review
and other feedback given to the employee through coaching and reinforcing discussions.
These discussions should be held at the discretion of the supervisor any time throughout
the work cycle when performance changes. Every supervisor shall meet with each
employee atleast one time at the middle of the work cycle for an interim review of
performance. The purpose of this meeting is to discuss the employee progress towards
each of the established expectations & initiate action toward improvement, if needed.
Although this interim review is intended to be informal in nature, the supervisor must
document the actual result and behavior that falls below the GOOD level and establish
an improvement to overcome deficiencies. The overall rating must be discussed but does
not have to be recorded. During the monitoring process, the work plan results,
behavior/skills or expectations should be adjusted when it is determined that they have
changed or are beyond the employees control to perform throughout the work cycle, the
supervisor continues to coach and reinforce employees because this is the vital part of the
performance management process.
c) APRRAISING At the end of work cycle, the supervisor shall meet with each employee
to discuss and record the actual result and behavior for each expectation. The supervisor
must then rate each responsibility and record the rating on the work plan.
30
d) The supervisors must also record the actual behavior for each expectation and the rating
for each dimension on the work plan. The overall rating shall also be discussed with the
employee and recorded on the work plan. The overall summary statements supporting the
rating shall be written.
The performance planning process basically depends upon the KRAs which are the key result
areas, where an employee has to perform as per his URR( unique role and responsibility), this
URR template has been introduced by BHEL so that the KRAs are made as per these roles and
people perform as per what is expected out of them.
A KRA master is from where an employee selects his KRAs:
1. It is an exhaustive list of Key Result Areas identified in 24 functions to enable executives
prepares their plans.
2. Standard unit of measurement fixed for each KRA for uniformity in measurement.
3. KRAs classified into Operational and Capability building categories.
The KRA Master comes into functioning while planning for the action plan for an individual
employee:
The Performance Plan of an individual essentially consists of one section KRAs. This is the
essential component of any Performance Plan and the individual is expected to fill in this
section adhering to all guidelines in order to be able to submit his plan to his Appraiser.

31
1. Selecting the KRAs
The Appraisee will select relevant KRAs from the KRA Master of his function (i.e. the
function to which he has been mapped). A minimum of 4 and a maximum of 15 KRAs can be
selected. (max. 15 from own KRA Master; 5 optional which can be taken from KRA Masters of
other functions so as to ensure that the total no. of KRAs per plan does not exceed 15).
2. Target Setting and Action Plans for KRAs
For each KRA, 5 levels of performance must be defined by the appraisee that quantify the
extent of achievement in a given timeframe (L5 being the best and L1 being the lowest level of
performance)
Along with these, the Appraisee will develop an Action Plan consisting of specific steps
required to achieve the target for each KRA.
3. Calculate Stretch for L5 performance
For each KRA, the stretch for L5 Performance will be calculated using the Stretch Tool
provided in the system. (The Stretch Tool is currently under modification).
4. Assigning Weightage
The Appraisee will propose weightages between 5% and 25% for each KRA. The total
weightage for KRA (C) should be equal to or more than the minimum weightage for KRA(C)
prescribed for the relevant URR to which the individual has been mapped. The total of all KRA
weightages should add up to 100%. Maximum limit of weightages have been suggested for all
KRAs across all functions for all the three categories of URRs. Executives while assigning
weightages to the KRAs selected by them in their plan cannot exceed the maximum permissible
weightages specified against each KRA. This is ensured through inbuilt system checks.
32
In the case of Special Improvement Projects which have been linked to IMPRESS, the
weightages have been defined as per the Expected IMPRESS Score. The weightage is such cases
can go up to a maximum of 30%. (Table of Expected IMPRESS Score and corresponding
Weightages allowed).


MID YEAR REVIEW PHASE
Mid-Year Review is an interactive feedback session between the Appraisee and Appraiser
ONLY and takes place during the month of October for the half-year ended September 30
th
. It
is a mid-cycle process for reviewing and tracking achievements thus reducing the scope for
year-end surprises.
The Mid-Year Review does not result in a performance score and will be treated as a course
correction mechanism wherein the Appraiser guides the Appraisee on whether the Appraisee
is on track to achieve the performance plan finalised in April. Road blocks can be discussed
and resolved so that the Appraisee is able to achieve his targets.
Mid Year Review begins with the Appraisees self-appraisal. In his self-appraisal, the
Appraisee will comment on his/ her current level of achievement on KRAs and Developmental
Competencies, which will then be discussed with the Appraiser for his feedback and inputs.
During this phase the appraisee also identify both behavioural and functional competency and
completes one of the requirement of this phase.

33
Creating the Development Plan using Competencies and Development Plan Sections
Development Planning in MAP focuses on building individual capability using competencies.
5. Identifying competencies for development from the standard list
From the list of functional & behavioural competencies identified for the role, the Appraisee
will identify a minimum of one and maximum of three competencies during this phase. These
will be taken as training requirement which will be met in the following year. The urgent
functional competencies will be arranged internally by the department.

Documentation of the Performance Discussion 7 completing the competency section concludes
the Mid-Year Review Phase of MAP.

The Appraiser and the Appraisee will refer to documented and objective facts regarding
performance-related events for a meaningful performance discussion.

FINAL REVIEW PHASE
The Final Review Phase will begin with the Appraisees self-appraisal wherein he/she gives the
assessment of target achievement on each KRA defined in the Performance Plan.
The Appraiser will review the outcomes of self-appraisal and give his own assessment of the
achievement of the targets in the performance plan for each KRA. In addition he will also give
his assessment on the Behavioural Traits defined in the system.

34
After appraisal by Appraiser the plan will come back to the Appraisee for his information and
assessment done for KRAs (the assessment of Behavioural Traits will not be visible at this
stage). If the Appraisee feels that his Appraisers' Assessment is correct, he can Accept and
forward it to his Reviewer. However, in case of any issues regarding the assessment, the
Appraisee can request for a "Discussion" with his Appraiser. After the discussion, the
Appraiser will finalise his assessment and send it back to the Appraisee. The Appraisee at this
stage can either Accept the assessment or Reject it. In either case the plan will go to the
Reviewer with the appropriate message for his final assessment.
The Reviewer will give his assessment on the KRAs which will form the basis for calculation
of the final performance score of the individual. He will also give his assessment on the
Behavioural traits.
Till such time the decision regarding Normalisation is not taken the final performance score
will be visible to the Appraisee on his dashboard under the link Final Review. Once it is
decided to run Normalisation only the final Rating will be visible. Also visible will be those
Behavioural Traits in which he has been given a score of 3 or less on a five point scale.
The feedback during Mid Year Review will be taken into account to significantly add value to
the Final Review. The Appraisees self-appraisal will not directly contribute to the performance
score but will be viewed as the Appraisees opportunity to share his/her perspective on
performance.
Feedback and Coaching by Appraiser will be a key component of the Final Review as this
serves as an important input into the next cycles Plan.

35
Edit Plan
In case there is a genuine need for making mid-course corrections in the plan on account of
changes beyond the control of the Appraisee like dropping / delay of a project, change of
company priorities etc., facility for editing of performance plan has been provided. Such
corrections on specific request (offline) made by Appraisee with proper justification for the
change will be permitted only upto 31
st
December, with the specific approval of the concerned
Product/Function Head. Only when the Appraisee has the specific written permission of the
approving authority for editing his plan can he approach the Unit HR to enable him to edit his
plan. Unit HR has been given the Administrative Rights to Permit Editing of Plan for any
individual. Once the Unit HR marks the individuals' plan for edit, the plan of the individual
reverts back to "Draft" Mode wherein he can make the necessary corrections and submit the
edited plan for approval of his Appraiser and Reviewer.
Appraisee : Role Overview
Every executive whose performance is assessed under MAP is an Appraisee.
The Appraisee has the major role in MAP as MAP enables him/her to effectively manage his
performance in a given performance cycle.
Performance Planning
Identify appropriate KRAs from functional KRA Master
If required, request for new KRAs and seek approval from HOD
Set five levels of targets for each KRA
Propose an action plan for achievement of each KRA Target
Assign a weightage for each KRA
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Mid Year Review
Conduct a self-appraisal to track progress of performance on KRAs & Complete the
Competencies section.
Discuss performance with Appraiser and seek feedback on performance
If required and approved, initiate request for Edit Plan
Final Review
Conduct self-appraisal to evaluate performance on KRAs
Discuss performance with Appraiser and seek feedback on performance
Finalise with Appraiser actual achievement against targets
Appraiser: Role Overview
Every executive who assesses the performance of one or more Appraisees that report to
him/her is an Appraiser.
As the Appraiser is in direct contact with the Appraisee and has a good understanding of the role
and the environment within which the Appraisee operates, he is in the best position to provide
continuous feedback and coaching.
Performance Planning
Identify appropriate URR for Appraisee
Approve targets for KRAs
Approve weightages for KRAs
Discuss action plan defined for each KRA by Appraisee


37
Mid Year Review
Review the self-appraisal submitted by Appraisee
Complete competency section
Discuss performance of Appraisee and provide feedback
If Edit Plan has been requested for by Appraisee, evaluate the request
and forward to Reviewer
Final Review
Review Appraisees Self-Appraisal
Evaluate performance on each KRA and actual achievement against
targets.
Appraise Behavioural Traits
Discuss performance with Appraisee and provide feedback and coaching
Reviewer: Role Overview
Appraisers Appraiser, who is responsible for reviewing the entire performance process, is
the Reviewer.
The Reviewer has the role of validating performance plans and final ratings to ensure
consistency and objectivity across the teams reporting to his/her Appraisees.
The Reviewer is responsible for obtaining agreement when differing points of view arise
between the Appraisee and the Appraiser.
Performance Planning
Resolve any conflicts between Appraisee and Appraiser
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Mid Year Review
No role other than forwarding request for Edit Plan to concerned Head of Product/ Function,
if Appraisee so desires and Reviewer is agreeable for the same.
Final Review
Review appraisal by the Appraiser on Appraisees Performance and
Development
Provide final sign-off on actual achievement against targets
Review appraisal of Behavioural Traits of Appraisee done by Appraiser
Resolve any conflicts between Appraisee & Appraiser

Head of Dept. (HOD): Role Overview
Head of the Dept. as defined in MAP is the final Approving Authority for permitting
addition of new KRAs as requested by Appraisee. The approval has to given on-line in
the MAP system and once approved; the new KRA gets added automatically to the
respective KRA Master.

The MAP Cycle-

The map cycle for a year starts in April and May with performance planning with mid
year review taking place in October, final review again in April and Normalisation taking
place in May.
39
THE MAP CYCLE
Performance Planning
(Target setting)
Mid-year Review
Final Review
Normalisation
Ongoing
Feedback
Appraiser
Appraisee
April-May
October
April
May

Fig: 2.5 the MAP Cycle


Feedback and Coaching
Performance appraisal process is incomplete without the feedback given to the employee about
his appraisal and his performance. But the way of giving as well as receiving the feedback differs
from person to person and their way of handling and their outlook towards the issue. According
to a popular saying:
A SUCCESSFUL MAN IS ONE WHO CAN LAY A FIRM FOUNDATION WITH THE
BRICKS OTHERS HAVE THROWN AT HIM.
40
Any performance review process is incomplete without the feedback to the employees. The
feedback could be given in the review discussion. Review discussions are semi formal,
scheduled, periodic interactions usually bimonthly or quarterly between a manager and
his employee. The basic purpose of the review discussion is to analyze the performance of
the employee in the past to improve the performance of the employee in future.

A review discussion is an opportunity to coach, mentor, learn and understand. The manager
encourages his/her employees to critically reflect over progress made on the Performance
appraisal plan and to develop creative, yet feasible alternatives for problem areas.


The manager uses this opportunity to:
Review the performance of the each employee individually.
Discuss the problems faced by the employees during the course of action.
The solutions tried, and the degree of success achieved in solving the problems faced.
Revisit with the employee, his/ her annual plan for the remaining time period and
develop revised action plans, if necessary.
Review discussions reassure the employees that each one of them has structured
opportunities for one to one interaction with the manager once every two or three months
during the year.
41
These opportunities are important as they provide an important chance for performance
monitoring or development mentoring.
The aim of the performance review discussions is to share perceptions, solve the problem
faced during the course of the action, decide on the new goals jointly and provide a feedback
to the employee for the past performance i.e. to look at his strengths and weaknesses and also
help to chart out a career plan for the employee.
The focus of these performance review discussions should not bet o judge the employees
past performance; rather it should be to motivate the employee to improve his future
performance and reinforce his good behaviour.
At BHEL too a review discussion takes place which helps in improving the performance of the
employees.
The process of continuous Feedback and Coaching is inherent and critical part of MAP. The Mid
year and the Final reviews are specifically focused on Feedback and Coaching and require the
appraisee and the Appraiser to have a formal feedback session. For Feedback and Coaching to be
truly effective, it should be provided and received on and on- going basis, when used effectively.
Feedback and Coaching is a powerful means of positive impacting performance. Feedback and
Coaching helps an Appraiser in both obtaining information and providing inputs on how an
appraisee is performing and whether or not he/she is headed in right direction.
Feedback is of various types:-
Positive Feedback
42
Corrective Feedback

Feedback focused on identifying obstacles to performance
Feedback for the purpose of sharing information.
All these do take place at BHEL.

Obtaining Agreement
While implementing MAP, occasions might arise when there are different points of view
between the Appraiser and the Appraisee. In such situation, the Appraiser and the Appraisee will
achieve a consensus through a process of discussion. In most cases, the Appraiser is expected to
arrive at an outcome that satisfy both Appraiser and the Appraisee.
In case the Appraiser feels the need, he/she can approach the reviwer for the appropriate
inputs. The reviewer and the Appraiser would arrive to a solution through a process of discussion
that would align the points of view of the Appraiser and the Appraisee. The Appraiser would
discuss the same with the Appraisee to close the issue. The unlikely event of the need for future
escalation, the issue can be taken to the reviewer for a three- party discussion on a case basis.
The Reviewer would have a joint discussion with the Appraisee and the Appraiser where the
decision taken by the reviewer would be final.
Thus, this is how Map gets operated at BHEL.

43
3. Differentiation-
To prevent the appraiser giving the same rating to the employees BHEL has also
introduced a differentiation tool, which disallows the people getting the same rating
irrespective of their work thus avoiding the general rating.
It ensures that no two individuals within a group can have the same aggregate score on
the given factors
Quality of work
Cost Consciousness
Process Orientation
Contribution to overall objectives of the Group
There are several bands in which the employees lie and no two employees of the same
band can have the same rating, these bands are as such:
E1-E3; E4-E5; E-6 and so forth these are the levels of the executives and those
employees falling in the categories of E1, E2, E3 would not get the same rating.

4. Normalization-
It is the process of categorizing individuals within a department into Excellent / Very
Good / Good / Fair / P, based on Performance Scores.
Principle of Normal distribution is used to define the percentage in each category.
It ensures alignment between individual ratings and performance of the Company, Unit &
Department.

44
The rating of the employee through a bell-shaped curve which would measure the actual
performance of he employee which can be placed up in the form of the Graph.
For ex- The Performance Rating of A is 12.45 and that of B is 12.4 and that of C is
12.43. If we look normally the can be round of and made 13, 12 and12. But it is actually
not so. There has to be the difference in the rating of the three which can be depicted
through the graph. Thus the Curve depicting the performance of the employee is known
as Normalisation Curve .
These are the tools used in the E-map technique in BHEL.
Tools supporting various features of the E-map-
All the tools described whether a balanced scorecard or the KRA master or normalization are
there to support the features of the E-map system, this is how they are related:

Evolution of the performance management system over the years-
Earlier there was just the annual confidential report as a method to appraise the employees in an
organization but that was only till 2001-2002.
In 2002 till 2007 there came KRAs, balance scorecard and A category which was basically
focused in rating the executives on the basis of the objectivity or the targets they were able to
achieve.

45
In 2008 till 2009 apart from the above there was just another category introduced B which dealt
with the behavioral aspect of the employees, thus not only the targets but also aptitude and
attitude get rated now.
In 2009-2010 the A category also got differentiated into two subcategories: A1 and A2, while A1
was quantity based A2 was based on quality. Also there were differentiating bands introduced.
This is the evolution of the performance appraisal system at BHEL.











46
CHAPTER 4
COMPANY PROFILE
It was a great opportunity for India Government to establish Public Sector Undertakings to boost
Indian economy after 200 years of long British colonial rule. Mr. Jawaharlal Nehru, the first
Indian prime minister established many Public Sector Undertakings and at present there are
about 236 public sector undertakings working under government of India and among them
Bharat Heavy Electrical Ltd. is one of the largest engineering enterprises. Establishment of
Public Sector Undertakings (PSU) had two main reasons one was to provide employment and
second was to become a savior of Indian economy. After Independence private organizations
provided lesser opportunity for employment. However, due to thrust on Public Sectors and due to
excessive job security it was a challenge before Management of PSU to deliver results. The work
assessment of all cadres of workers, supervisors and executives was of topmost priority. In view
of above in PSUs, system was introduced for assessing the work etc of employees which was
based on Annual Confidential Report. Annul Confidential Report is a report which present an
overview of an individual performance in the organization. Later these reports were used only to
analyze the performance of the lower grades while performance of executives and top
management was supervised through an E-MAP system while the performance of units was
scrutinized through Balance scorecard system.
Thus, Bhel now has a systematic and easy to understand and nonbiased and fair system for
performance appraisal, a system which has evolved over the years.
47
BHEL manufactures over 180 products under 30 major product groups and caters to core sectors
of the Indian Economy viz., Power Generation & Transmission, Industry, Transportation,
Telecommunication, Renewable Energy, etc. The wide network of BHEL's 14 manufacturing
divisions, four Power Sector regional centres, over 100 project sites, eight service centres
and 18 regional offices, enables the Company to promptly serve its customers and provide them
with suitable products, systems and services efficiently and at competitive prices. The high level
of quality & reliability of its products is due to the emphasis on design, engineering and
manufacturing to international standards by acquiring and adapting some of the best technologies
from leading companies in the world, together with technologies developed in its own R&D
centres.
BHEL has acquired certifications to Quality Management Systems (ISO 9001),
Environmental Management Systems (ISO 14001) and Occupational Health & Safety
Management Systems (OHSAS 18001) and is also well on its journey towards Total Quality
Management.
BHEL has
1. Installed equipment for over 90,000 MW of power generation -- for Utilities, Captive
and Industrial users.
2. Supplied over 2,25,000 MVA transformer capacity and other equipment operating in
Transmission & Distribution network up to 400 kV (AC & DC).
48
3. Supplied over 25,000 Motors with Drive Control System to Power projects,
Petrochemicals, Refineries, Steel, Aluminum, Fertilizer, Cement plants, etc.
4. Supplied Traction electrics and AC/DC locos to power over 12,000 kms Railway
network.
5. Supplied over one million Valves to Power Plants and other Industries.
BHELs operations are organized around three business sectors, namely Power, Industry -
including Transmission, Transportation, Telecommunication & Renewable Energy - and
Overseas Business. This enables BHEL to have a strong customer orientation, to be sensitive to
his needs and respond quickly to the changes in the market.
BHEL's vision is to become a world-class engineering enterprise, committed to enhancing
stakeholder value. The company is striving to give shape to its aspirations and fulfill the
expectations of the country to become a global player. The greatest strength of BHEL is its
highly skilled and committed 42,600 employees. Every employee is given an equal opportunity
to develop himself and grow in his career. Continuous training and retraining, career planning, a
positive work culture and participative style of management? All these have engendered
development of a committed and motivated workforce setting new benchmarks in terms of
productivity, quality and responsiveness

49
In the post independence era when India was moving towards industrialization the major thrust
of the govt. was in the core sector and this sector and this sector was Given to the public sector,
with this objective heavy electrical (I) Limited was setup in Bhopal in august, 1956 with a view
to reach self-sufficiency in the industrial Product and power equipment. This plant was setup
under technical collaboration of Miss AEL, U.K.
There more plants were subsequently setup Touchy, Hyderabad and Haridwar. With Soviet and
Czechoslovakian assistance in May 1956, Dec 1965 and Jan 1967 respectively .As there was a
need for an integrated approach for the development of Power equipment to be manufactured in
India. Heavy electrical ltd. Bhopal was merged into BHEL in 1974.
About the Jhansi Unit-
By the end of 5
th
five-year plan, it was envisaged by the planning commission that the demand
for power transformer would rise in the coming years. Anticipating the countrys requirement
BHEL decided to set up a new plant, which would manufacture power and other type of
transformers in addition to the capacity available at BHEL, Bhopal. The Bhopal Plant was
engaged in manufacturing of transformers of large rating and Jhansi unit would concentrate on
power transformer up to 50 kVA, 132 kV Class and other transformers like Instrument
Transformers, Traction Transformers for Railway etc.
This unit of Jhansi was established around 14 km from the city on the N.H. No. 26 on Jhansi
Lalitpur road. It is called second generation plant of BHEL set up in 1974 at an estimated cost of
Rs. 16.22 crores inclusive of Rs. 2.1 crores for township.
50
Its foundation was laid by Late Mrs. Indira Gandhi the Prime Minister on 9
th
January 1974. The
commercial production of the unit began in 1976-77 with an output of Rs. 53 Lacks since then
there has been no looking back for BHEL, Jhansi.
This plant of BHEL is equipped with the most modern manufacturing processing and testing
facilities for the manufacture of power, special transformer and Instrument transformers, Diesel
shunting Locomotives and AC/DC Locomotives. The layout of the plant is such that it is well
streamlined to enable smooth material flow from the raw material stages to finished goods. All
the feeder bays have been laid perpendicular to main assembly bay and each feeder bay raw
material smoothly gets converted to sub assemblies which after inspection are sent to main
assembly bay.
The raw material that are produced for manufacture are used only after thorough material testing
in the testing lab and with strict quality checks at various stages of productions. This unit of
BHEL is basically engaged in the production and manufacture of transformers of various types
and capacities with the growing competition in the transformer section, in 1985-88 it under took
the re-powering of diesel, but it took a complete year for the manufacturing to began. In 1987-
88, BHEL has progressed a step further in undertaking the production of AC Locomotives and
subsequently it is manufacturing AC/DC Locomotives also.
SECTIONS OF BHEL JHANSI UNIT
BHEL has many departments, while production and Administrative departments are separate.
Broadly speaking BHEL, Jhansi has two production categories.
51
Transformer
Loco

History-
Earlier there were just the confidential reports to describe the performance of all the employees
irrespective of their designation, but now these reports are no more used for the executives who
are the people mainly responsible for the proper functioning because the artisans and the
supervisors work as per what is told to them by these executives, thus, to improve performance
and quality of work this system is introduced; the better the people perform the better pay they
get.
Annual confidential report was in function till 2001-2002, after that e-MAP was introduced and
the tools in it also evolved slowly.
In 2002-2007: KRAS and balanced score card was used with KRAS without any
differentiation.
2008-2009: the Key result areas or KRAs were divided into 2 categories A and B; A for
objectivity (KRA based) and B for behavioral traits, there was also a problem faced
which was that appraiser had a habit of rating people with some similar score which
meant that there was no differentiation.
52
2009-2010: again A category was divided into KRA based and quality based appraisal;
the problem faced earlier was also eliminated by introducing bands for different
employees which meant no two band people can have same type of rating thus getting rid
of the problem of rating everyone the same.
2010: confidential reports go online.

Mission and vision of BHEL-
The performance of the employees ultimately means how much the employee is able to
achieve his/her goals which ultimately help in attaining the organizations goals. Thus the
goals of the organization are :
BUSINESS MISSION
To maintain a leading position as supplier of quality equipment, system and service in the
field of conversion, transmission, utilization and conservation of energy for application of
energy for application in the areas of electric power, Transportation, oil & gas
exploration and industries.
Utilize companys capabilities and resources to expand business into allied areas and
other priority sector of the economy like defense, communication and electronics.


53
GROWTH
To ensure a steady growth by enhancing the competitive edge of BHEL in existing business new
areas and international market so as to fulfill national expectation
PROFITABILITY
To provide a reasonable and adequate return on capital employed, primarily through
improvements in operational, efficiency, capacity utilization and productivity
Generate adequate internal resources to finances the companys growth.
FOCUS
To build a high degree of customer confidence by providing increased value for his money
through international standards of product quality, performance and superior customer service.
PEOPLE ORIENTATION
To enable each employees to achieve his potential, improve his capabilities perceive his
role and responsibilities and participate and contribute to the growth and success of the
company.
To invest in human resources and continuously and be alive to their needs.


54

TECHNOLOGY
To achieve technological excellence in operation by development of indigenous technologies
and efficient absorption and adoption of imparted technologies to suit business and priorities
and provide competitive advantage to the company.
IMAGE
To fulfill the expectation this stakes holders like government as owner. employees, customers
and the country at large have from BHEL.
VALUES
Meet commitments made to external & internals customers
Foster learning, creativity and speed of response
Respect for dignity and potential of individuals
Loyalty and pride in the company
Team planning
Zeal to excel
Integrity and fairness in all matters
55
CHAPTER 5
RESEARCH METHODOLOGY
This chapter talks about the introduction, issues, scope of study, research process and the
conclusion.
INTRODUCTION:
Research design is the arrangement of conditions for collection and analysis of data in a manner
which aims to combine relevance to research purpose with economy in procedure. It is the main
part of a grant application describing a principal investigator's proposed research, stating its
importance and how it will be conducted. A typical research plan has four main sections:
1. Research Design and Methods
2. Background and Significance
3. Specific Aims
4. Preliminary Studies and Progress Report
The designing decisions happen to be in respect of:
Work already done.
About the study.
Reason of the study.
Places where study is to be conducted.
56
Type of data required.
Suitable sources of data.
Sample design
Techniques used for data collection.
Method of data analysis.
Style in which report will be made.
Categorization of research design:
These are as follows:
Sampling Design: It deals with the method of selecting items to be observed for the given
study.
Obsevational Design: It relates to the conditions under which the observations are to be
made.
Statistical Design: It is concerned with question of how many items are to be observed
and how the information and data gathered are to be analyzed.
Operational Design: It deals with the techniques by which the procedures specified in the
sampling, statistical and observational design can be carried out.
Specific Aims:
The specific aim is a formal statement of the objectives and milestones of a research
project in a grant application.
57
The purpose of this section is to clearly and concisely describe what the proposed
research is intended to accomplish.
Should be hypothesis-based.
Objectives should be obtainable within the proposed timeframe.
Study aims should fit together in an overall framework.
Study should be well-focused rather than broad and diffuse.
Should include specific research objectives
Background and Significance
The background and significance section states the research problem including the proposed
rationale, current state of knowledge and potential contributions and significance of the research
to the field.
Critically evaluate existing knowledge, including background literature and relevant data.
References should reflect an updated knowledge of the field.
Specify existing gaps that the project is intended to fill.
Discussion should convey the importance and relevance of the research aims.
Highlight potential policy or practice impacts.Highlight why research findings are
important beyond the confines of the specific research project (e.g., significance; how
research results can be applied).
58

Objective of research:
To have a glimpse of the Performance appraisal system at BHEL.
To check how different it is from others
To check the employee satisfaction
To check its effectiveness
Evolution of this system over the years
To know about the loophole if any.
To know about the changes the employees want in the present system.
Issues:
Although this system has made differentiation mandatory however:
Managers and others are quite busy in work so questionnaire is to be made which
requires less time.
Tendency to give same score to majority is a major problem it is to be known whether
such problem exists.
No ambiguous language should be used
Grade factor has to be taken in into consideration, different grades are evaluated
differently
Separate questions for the supervisor category and executive category have to be made
The language of the questionnaire is to be kept simple so that people could easily
understand what is being asked and it is less time consuming.
59
Questionnaire must contain all the issues related to the systems used by BHEL to rate
people.
Research Methodology:-
1. The research problem: The purpose of this project is to do a study on performance
appraisal system at BHEL which employ constructive active learning pedagogy, teach
higher order thinking skills, and that introduce analyzing skills to MBA students.
2. Extensive literature survey: This is the most important part of any research because it
gives us the understanding to do our research in the right direction .So extensive literature
survey is connected with the problem, which involves knowing the whole system which
is used here.
3. Research design:
For the research information has collected from the HR department of the unit as well as
a Survey is conducted among the employees to know about their opinion. As the purpose
of research study is that of exploration thats why a flexible research design has been
chosen which provides opportunity for considering many different aspects of a problem.






60


Fig: 3.1 flowchart of research design
4. Determining sample design: As the total geographical area of interest is big one, so
Area Sampling is chosen. Area Sampling is quite close to cluster sampling and is often
talked about when the total geographical area of interest happens to be big one.
61
5. Under area sampling first divide the total area into a number of smaller non-overlapping
areas, generally called geographical clusters, then a number of these smaller areas are
randomly selected, and all units in these small areas are included in the sample. BHEL
being a big industrial area in Jhansi different departments are taken as specific areas for
questionnaire filling.
6. Data collection- data is collected from various resources mostly from the HR department
and then from the managers of various departments so that the methods by which data is
collected could be known. SAMPLE SIZE: 15
7. Analysis of data:
After the data have been collected, we turn to the task of analyzing them through bar
charts, tables the results are analyzed.
8. Generalizations and Conclusion:
After analyzing the finding, various conclusions could be drawn i.e. whether people are
satisfied, how effectively the performance management system is implemented, whether
various changes are required how has it evolved over the years.
Process of forming questionnaire
Writing a Questionnaire is one of the most critical stages in the development process of the
survey. A properly constructed questionnaire can help in getting valid and relevant information.
Some of the points taken into account while forming of questionnaire are:
62
Each question should relate directly to the objectives of the study.
Every respondent should be able to answer every question (unless instructed otherwise).
Each question should be phrased so that all respondents interpret it the same way.
While translating use back translation to cross check the meanings
The questions should be such that they get the answers to what is need that is the aim of
the project should be fulfilled.
The Questions have to be Precise, Clear and Concise.
If questions are too complicated and are not easy to understand, then therell be a high
"drop out" rate or the information generated will not be appropriate
Create a sequence for the topics that is unbiased
Make sure that the questions asked first do not bias the results of the next questions.
While preparing the questionnaire for this project following points were taken into
account:
Determine different issues from appraisees and appraisers perspective.
Two separate questionnaires prepared for the provider and the user.
The users questionnaire is divided into 2 parts:
1. Section A- it consists of those questions related to the supervisors performance
appraisal.
2. Section B- it comprises of questions to be asked from the executive category,
again this section is divided into two parts:

63
The first part consists of question related to executives who have to
answer as an appraise
The next consists of questions the executive has to give as an appraiser.
Determine the type of question that is best suited to answer and provide enough
robustness to meet analysis requirements of the Act in such a way that open-ended text
questions, dichotomous, multiple choice, rank order or scaled, questions are used.
Use of 5-point likert scale in order to get a clear response.
For more response rates the questions are brief.
Avoid asking for identifying information in the beginning of the questionnaire so that
people are not offended in any manner.
Plain language is used so that respondents can answer quicker and more accurately.
These are the things that have to be kept in mind while preparing the questionnaire in order to
extract maximum informati





64
Chapter 6
Data analysis
Introduction-
Analysis of data is a process of inspecting, cleaning, transforming, and modelling data with the
goal of highlighting useful information, suggesting conclusions, and supporting decision making.
Data analysis has multiple facets and approaches, encompassing diverse techniques under a
variety of names, in different business, science, and social science domains.
In the given project report volume of data is collected from employees of BHEL about their take
on the present performance appraisal system at the organisation, it becomes necessary to analyze
data, firstly, the data has to be clean enough, that is it should be correct and authentic, so that the
conclusion that we make out of this study is valid thus, the process of data analysis goes as
such:-
The process of data analysis:-
Data analysis is a process, within which several phases can be distinguished:
Data correction
Initial data analysis (assessment of data quality)
Main data analysis (answer the original research questFinal data analysi..

65

Data correction is an important procedure during which the data are inspected, and erroneous
data areif necessary, preferable, and possiblecorrected. Data correction can be done during
the stage of data entry. But it should be seen that, it is important not to throw information away
at any stage in the data cleaning phase. All information should be saved (i.e., when altering
variables, both the original values and the new values should be kept, either in a duplicate dataset
or under a different variable name), and all alterations to the data set should carefully and clearly
documented, for instance in a syntax or a log.
For the analysis of data for the given study too, a lot of correction was needed in order to ensure
that the data entered is not erroneous, besides the data entry done are done carefully, for a wrong
data entry may lead to a wrong conclusion.

Initial data analysis
The most important distinction between the initial data analysis phase and the main analysis
phase, is that during initial data analysis one refrains from any analysis that are aimed at
answering the original research question.
Final stage of the initial data analysis
During the final stage, the findings of the initial data analysis are documented, and necessary,
preferable, and possible corrective actions are taken.
The most essential part of this stage is however the observations which come out as a result of
analysis of the data, the conclusions one could make out after analysis of the data through a
reliability study or a graph or a mean or median.
66

Different ways of Analyzing:-
Several analyses can be used during the initial data analysis phase:
There are several ways of analyzing data, here SPSS software is to analyze the data through
various techniques whether descriptive or reports or tables, it helps in analyzing the data
correctly by the use of a number technique.
In this project report descriptive method of analysis is used using charts and cross tabs.
Summary of the steps followed-
1. Collect data about the performance appraisal scheme at BHEL
2. Prepare questionnaire, for the appraisee and the appraiser too.
3. Get the questionnaires filled.
4. The respondents must belong to both categories for which different performance
appraisal is done, i.e. executives and the supervisors.
5. Conduct a pilot survey( a rotation was conducted in various departments of BHEL)
6. Bring about the changes in the questionnaire whatever is required after conducting the
pilot survey.
7. Then is conducted the real survey.
8. After the survey comes the time of data analysis, through the various techniques
9. Come to conclusion after analyzing the data thoroughly.
10. Conclusion could be drawn about the effectiveness of the system and the areas of change
are deduced.



67
Analysis of the Data-

Now that the data is collected, the real analysis begins here. It is to be analyzed that how aware
are the users, their belief in the government, how many users are there and whether they are
satisfied with the act or not while the reason of the nonusers are also known as to why they
havent used the act till date.
On the issuer side satisfaction level of the provider is to be known apart from their perspective
towards this act, they recommendations and scope of improvement if any.
Demography-
Age:

Fig: 3.1 the distribution of respondents as per their ages


68
18-25
26-40
41-60
61 and above
age
Pies showcounts
12.0
24.0
33.0
1.0

Observation-
Through the above chart it could be deduced that maximum people are from the 41 to 60 age
group, followed by 26 to 40 and so forth.

Work experience-

Fig:4.2 work experience


69

less than 5 years
5-15 years
15-25 years
above 25 years
work experience
Pies showcounts
19.0
20.0
9.0
22.0
Observation-
Most of the people are here with a work experience above 25 years, hence they have seen the
changes in the performance appraisal system through the years.
Evaluation of the performance appraisal system for the supervisors and workers
The appraisal of the people of this category takes place through the annual confidential report.
1. Annual confidential report affects bonuses


Table: 3.1Annual confidential report affects bonuses
N Valid
31
Missing
39
Mean
3.68




Table: 3.2 Annual confidential report affects bonuses

Frequency Percent Valid Percent
Cumulative
Percent
Valid strongly agree
1 1.4 3.2 3.2
agree
3 4.3 9.7 12.9
neither agree
nor disagree
1 1.4 3.2 16.1
disagree
26 37.1 83.9 100.0
Total
31 44.3 100.0
Missing System
39 55.7
Total
70 100.0

Observation:
Through the above data analysis, the mean comes out to be 3.68 which is closer to disagreeing
and being neutral thus most of the people feel that the bonuses are ineffective of the CRs
although in some extreme cases the bonuses may get affected if the CRS are bad.
70
3. Present system is better than the previous one

Table: 4.21 Present system is better than the previous one

N Valid
30
Missing
40
Mean
1.67


Table: 4.22 Present system is better than the previous one

Frequency Percent Valid Percent
Cumulative
Percent
Valid strongly agree
14 20.0 46.7 46.7
Agree
12 17.1 40.0 86.7
neither agree
nor disagree
4 5.7 13.3 100.0
Total
30 42.9 100.0
Missing System
40 57.1
Total
70 100.0



Observation:
The employees strongly are in favor of the present changes and method of annual confidential
report which has now gone online, otherwise people before were quite blindfolded who hardly
knew anything about their report.
Thus it is clear that, the online ACR system would prove to be very effective, but the results are
yet to be seen, there are various changes which could be brought about like telling the people
about the parameters on which they are to be rated, also providing a regular feedback to these
people would provide for the overall satisfaction of the employees.


71
Evaluation of the E-map system for performance appraisal of the executives-
The appraisal system is a web based mapping system in which the roles and responsibilities are
mapped with the key result areas which define what a person has to do then his performance gets
rated by the reporting officer who happens to be the immediate senior, then it goes to the
reviewer and finally the HOD but the rating for an individual is also done by the general
manager, the questionnaire helps in knowing about the effectiveness of the system.

E-MAP is helping in improving the performance of the organization
Table: 4.23 E-MAP is helping in improving the performance of the organization

Frequency Percent Valid Percent
Cumulative
Percent
Valid stongly agree
14 20.0 35.9 35.9
Agree
20 28.6 51.3 87.2
Disagree
5 7.1 12.8 100.0
Total
39 55.7 100.0
Missing System
31 44.3
Total 70 100.0



Fig: 4.5 e-map is improving the system


Observation-
Most of the people are satisfied by the E-map system and feel that the performance in the
organization has improved because of this E-map system.




72












73
E-MAP is helping in improving the performance of the organization
disagree agree stongly agree
P
e
r
c
e
n
t
60
50
40
30
20
10
0
E-MAP is helping in improving the performance of the organization
E-map has brought about transparency in the system
Table: 4.24 E-map has brought about transparency in the system

Frequency Percent Valid Percent
Cumulative
Percent
Valid stongly agree
7 10.0 17.9 17.9
Agree
24 34.3 61.5 79.5
neither agree
nor disagree
3 4.3 7.7 87.2
Disagree
5 7.1 12.8 100.0
Total
39 55.7 100.0
Missing System
31 44.3
Total 70 100.0



Fig: 4.6 E-map has brought about transparency in the system


74
E-map has brought about transparency in the system
disagree neither agree nor
disagree
agree stongly agree
P
e
r
c
e
n
t
60
40
20
0
E-map has brought about transparency in the system
Observation-
Most of the people are happy with the present system as everything is known to them no biasing
could happen due to the transparent system, thus E-map has brought about transparenc
Better performers receive better incentives
Table:4.25 Better performers receive better incentives

Frequency Percent Valid Percent
Cumulative
Percent
Valid stongly agree
18 25.7 46.2 46.2
agree
21 30.0 53.8 100.0
Total
39 55.7 100.0
Missing System
31 44.3
Total
70 100.0


Fig: 4.7 Better performers receive better incentives
75
Better performers receive better incentives
agree stongly agree
P
e
r
c
e
n
t
60
50
40
30
20
10
0
Better performers receive better incentives
Observation-
There is no disagreeing to the fact that better performers get better incentives through this
system, there is no biasing.
Disputes with superiors have no affect on the ratings given by them
Table: 4.26 Disputes with superiors have no affect on the ratings given by them

Frequency Percent Valid Percent
Cumulative
Percent
Valid stongly agree
4 5.7 10.3 10.3
agree
23 32.9 59.0 69.2
disagree
12 17.1 30.8 100.0
Total
39 55.7 100.0
Missing System
31 44.3
Total 70 100.0


76
Disputes with superiors have no affect on the ratings given by them
disagree agree stongly agree
P
e
r
c
e
n
t
60
50
40
30
20
10
0
Disputes with superiors have no affect on the ratings given by them
Observation-
Although the system is transparent but still employees feel that disputes with superiors do affect
the ratings in some or the other form.
Periodic feedback is a necessity
Table: 4.27 Periodic feedback is a necessity

Frequency Percent Valid Percent
Cumulative
Percent
Valid stongly agree
18 25.7 46.2 46.2
agree
21 30.0 53.8 100.0
Total
39 55.7 100.0
Missing System
31 44.3
Total
70 100.0


Fig: 4.8 Periodic feedback is a necessity


77
Periodic feedback is a necessity
agree stongly agree
P
e
r
c
e
n
t
60
50
40
30
20
10
0
Periodic feedback is a necessity
Observation-
People feel that feedback at a timely period is a must to improve performance, people if know
where and what to improve they would definitely improve themselves to be better.

Promotions depend upon the ratings
Table: 4.28 Promotions depend upon the ratings

Frequency Percent Valid Percent
Cumulative
Percent
Valid stongly agree
7 10.0 17.9 17.9
agree
32 45.7 82.1 100.0
Total
39 55.7 100.0
Missing System
31 44.3
Total
70 100.0



78
Promotions depend upon the ratings
agree stongly agree
P
e
r
c
e
n
t
100
80
60
40
20
0
Promotions depend upon the ratings
Observation-
There is no scope of denying that the promotions, totally depend upon the ratings if both the
workers are working almost with same capability then also the one with better ratings would get
an early promotion.

Periodic training is received
TABLE: 4.29 periodic training is received

Frequency Percent Valid Percent
Cumulative
Percent
Valid stongly agree
6 8.6 15.4 15.4
agree
33 47.1 84.6 100.0
Total
39 55.7 100.0
Missing System
31 44.3
Total 70 100.0


79
periodic training is received
agree stongly agree
P
e
r
c
e
n
t
100
80
60
40
20
0
periodic training is received
Observation-
The employees at BHEL are given timely training to ensure a skilled workforce as per the
present trends and changes.

Appraiser periodically discusses about the goal achievements and areas to improve

Frequency Percent Valid Percent
Cumulative
Percent
Valid stongly agree
13 18.6 33.3 33.3
agree
26 37.1 66.7 100.0
Total
39 55.7 100.0
Missing System
31 44.3
Total 70 100.0

Fig: 4.11 Appraiser periodically discusses about the goal achievements and areas to improve
80
Appraiser periodically discusses about the goal achievements and areas to
improve
agree stongly agree
P
e
r
c
e
n
t
60
40
20
0
Appraiser periodically discusses about the goal achievements and areas to
improve
Observation-
At BHEL there as a periodic discussion which takes place between the appraiser and the
appraisee about the goal achievements and areas to improve.

Mid year review helps in improvement
Table: 4.31Mid year review helps in improvement

Frequency Percent Valid Percent
Cumulative
Percent
Valid stongly agree
13 18.6 33.3 33.3
agree
26 37.1 66.7 100.0
Total
39 55.7 100.0
Missing System
31 44.3
Total 70 100.0


Fig: 4.12 Mid year review helps in improvement

81
Mid year review helps in improvement
agree stongly agree
P
e
r
c
e
n
t
60
40
20
0
Mid year review helps in improvement
Observation-
Mid year review helps in improving the performance, specially for the employees who require
some feedback and advises in order to improve their performance, so that the final review comes
out to be good.

Behavioral traits affect the ratings
Table: 4.32 Behavioral traits affect the ratings

Frequency Percent Valid Percent
Cumulative
Percent
Valid stongly agree
7 10.0 17.9 17.9
agree
32 45.7 82.1 100.0
Total
39 55.7 100.0
Missing System
31 44.3
Total 70 100.0



82
Behavioral traits affect the ratings
agree stongly agree
P
e
r
c
e
n
t
100
80
60
40
20
0
Behavioral traits affect the ratings
Observation-
At BHEL it is not only the capability which affects the ratings but conduct at the office and
behavior also affect the overall rating of an employee.


Disagreement with superiors occur while deciding upon the KRA's
Table:4.34 Disagreement with superiors occur while deciding upon the KRA's

Frequency Percent Valid Percent
Cumulative
Percent
Valid stongly agree
4 5.7 10.3 10.3
agree
10 14.3 25.6 35.9
neither agree
nor disagree
9 12.9 23.1 59.0
disagree
16 22.9 41.0 100.0
Total
39 55.7 100.0
Missing System
31 44.3
Total 70 100.0













83

Fig: 4.14 Disagreement with superiors occur while deciding upon the KRA's
Observation-
Disagreement with superiors do prevail sometimes , but is soughted out as appraisers words are
the final words, after the discussion with the employee.
The present system focuses on quality of work not only on the quantity
Table: 4.35 The present system focuses on quality of work not only on the quantity

Frequency Percent Valid Percent
Cumulative
Percent
Valid stongly agree
31 44.3 79.5 79.5
agree
8 11.4 20.5 100.0
Total
39 55.7 100.0
Missing System
31 44.3
Total
70 100.0


84
Disagreement with superiors occur while deciding upon the KRA's
disagree neither agree nor
disagree
agree stongly agree
P
e
r
c
e
n
t
50
40
30
20
10
0
Disagreement with superiors occur while deciding upon the KRA's

Fig: 4.15 The present system focuses on quality of work not only on the quantity
Observation-
The present e-map system is maintaining the quality of work here not just quantity
E-map is an effective technique for performance appraisal

Table: 4.36 E-map is an effective technique for performance appraisal

Frequency Percent Valid Percent
Cumulative
Percent
Valid stongly agree
17 24.3 43.6 43.6
Agree
17 24.3 43.6 87.2
Disagree
5 7.1 12.8 100.0
Total
39 55.7 100.0
Missing System
31 44.3
Total
70 100.0
85
The present system focuses on quality of work not only on the quantity
agree stongly agree
P
e
r
c
e
n
t
80
60
40
20
0
The present system focuses on quality of work not only on the quantity


Observation-
The appraisers believe that E-map is an effective technique for appraising as the cumulative
count for agreeing is coming out to be 87.2 which proves that e-map has been a success.
There is a predetermind score in mind while rating a subordinate
Table: 4.37 There is a predetermind score in mind while rating a subordinate

Frequency Percent Valid Percent
Cumulative
Percent
Valid stongly agree
5 7.1 12.8 12.8
Agree
18 25.7 46.2 59.0
neither agree
nor disagree
2 2.9 5.1 64.1
disagree
14 20.0 35.9 100.0
Total
39 55.7 100.0
Missing System
31 44.3
Total 70 100.0
86
E-map is an effective technique for performance appraisal
disagree agree stongly agree
P
e
r
c
e
n
t
50
40
30
20
10
0
E-map is an effective technique for performance appraisal

Fig: 4.18 There is a predetermind score in mind while rating a subordinate
Observation-
People do disagree that there is any predetermined score in mind while evaluating the
employees, but actually there is a score in mind already made while evaluating an employee.

The ratings through the e-map helps in improving the score in the balance scorecard
Table: 4.38 The ratings through the e-map helps in improving the score in the balance scorecard

Frequency Percent Valid Percent
Cumulative
Percent
Valid stongly agree
12 17.1 30.8 30.8
agree
27 38.6 69.2 100.0
Total
39 55.7 100.0
Missing System
31 44.3
Total
70 100.0
87
There is a predetermind score in mind while rating a subordinate
disagree neither agree nor
disagree
agree stongly agree
P
e
r
c
e
n
t
50
40
30
20
10
0
There is a predetermind score in mind while rating a subordinate

Fig: 4.19 The ratings through the e-map helps in improving the score in the balance scorecard
Observation-
There is no denying the fact that the rating through the Map gradually affect the score in the
balance scorecard.
Regular feedback should be given
Table: 4.39 Regular feedback should be given

Frequency Percent Valid Percent
Cumulative
Percent
Valid stongly agree
19 27.1 48.7 48.7
Agree
20 28.6 51.3 100.0
Total
39 55.7 100.0
Missing System
31 44.3
Total
70 100.0
88
The ratings through the e-map helps in improving the score in the balance
scorecard
agree stongly agree
P
e
r
c
e
n
t
60
40
20
0
The ratings through the e-map helps in improving the score in the balance
scorecard

Fig: 4.20 Regular feedback should be given
Observation-
It is clear that the appraisers on their part give a regular feedback to their subordinates.






89

Regular feedback should be given
agree stongly agree
P
e
r
c
e
n
t
60
50
40
30
20
10
0
Regular feedback should be given
There is a need of some confidentiality
Table: 4.40 There is a need of some confidentiality

Frequency Percent Valid Percent
Cumulative
Percent
Valid stongly agree
8 11.4 20.5 20.5
Agree
22 31.4 56.4 76.9
neither agree
nor disagree
4 5.7 10.3 87.2
disagree
5 7.1 12.8 100.0
Total
39 55.7 100.0
Missing System
31 44.3
Total
70 100.0


Fig: 4.21 There is a need of some confidentiality


90
There is a need of some confidentiality
disagree neither agree nor
disagree
agree stongly agree
P
e
r
c
e
n
t
60
50
40
30
20
10
0
There is a need of some confidentiality
Observation-
The appraisers feel that there is a strong need of some confidentiality as the online system has
brought about unnecessary transparency; things which are to be kept hidden are also shown.
Too much transparency is making the system dysfunctional
Table: 4.41 Too much transparency is making the system dysfunctional

Frequency Percent Valid Percent
Cumulative
Percent
Valid stongly agree
9 12.9 23.1 23.1
Agree
19 27.1 48.7 71.8
neither agree
nor disagree
4 5.7 10.3 82.1
Disagree
7 10.0 17.9 100.0
Total
39 55.7 100.0
Missing System
31 44.3
Total
70 100.0


91
Too much transparency is making the system dysfunctional
disagree neither agree nor
disagree
agree stongly agree
P
e
r
c
e
n
t
50
40
30
20
10
0
Too much transparency is making the system dysfunctional
Observation-
People agree that too much knowledge about the system is making the system quite
dysfunctional.
Frequent discussions take place with subordinates on action plan and KRA's
Table:4.43 Frequent discussions take place with subordinates on action plan and KRA's

Frequency Percent Valid Percent
Cumulative
Percent
Valid stongly agree
5 7.1 12.8 12.8
Agree
34 48.6 87.2 100.0
Total
39 55.7 100.0
Missing System
31 44.3
Total
70 100.0


Fig: 4.23 Frequent discussions take place with subordinates on action plan and KRA's



92
Frequent discussions take place with subordinates on action plan and KRA's
agree stongly agree
P
e
r
c
e
n
t
100
80
60
40
20
0
Frequent discussions take place with subordinates on action plan and KRA's
Observation-
At BHEL appraiser hold frequent discussions with their subordinates to discuss about their
action plan and KRAs so that there is no ambiguity people work as per the organizations goals
and objectives.


Individuals should create their own action plan
Table: 4.44 Individuals should create their own action plan

Frequency Percent Valid Percent
Cumulative
Percent
Valid stongly agree
15 21.4 38.5 38.5
Agree
24 34.3 61.5 100.0
Total
39 55.7 100.0
Missing System
31 44.3
Total
70 100.0


































93

Fig: 4.24 Individuals should create their own action plan
Observation-
As people start with their self appraisal they must also decide upon their own KRAs so that they
are comfortable with the work they have to perform.
Map score helps in differentiating a nonperformer and a performer
Table: 4.45 Map score helps in differentiating a nonperformer and a performer

Frequency Percent Valid Percent
Cumulative
Percent
Valid stongly agree
8 11.4 20.5 20.5
agree
31 44.3 79.5 100.0
Total
39 55.7 100.0
Missing System
31 44.3
Total
70 100.0
94
Individuals should create their own action plan
agree stongly agree
P
e
r
c
e
n
t
60
40
20
0
Individuals should create their own action plan

Fig: 4.24 Map score helps in differentiating a nonperformer and a performer
Observation-
The appraisers do believe that tha Map score helps in differentiating a nonperformer from a
performer.






95
Map score helps in differentiating a nonperformer and a performer
agree stongly agree
P
e
r
c
e
n
t
80
60
40
20
0
Map score helps in differentiating a nonperformer and a performer
Mid year review is necessary for performance improvement
Table: 4.46 Mid year review is necessary for performance improvement

Frequency Percent Valid Percent
Cumulative
Percent
Valid stongly agree
12 17.1 30.8 30.8
Agree
27 38.6 69.2 100.0
Total
39 55.7 100.0
Missing System
31 44.3
Total
70 100.0


Fig: 4.24 Mid year review is necessary for performance improvement


96
Mid year review is necessary for performance improvement
agree stongly agree
P
e
r
c
e
n
t
60
40
20
0
Mid year review is necessary for performance improvement
Observation-
Appraiser find the mid year review more important than the appraise does for them it is an
important process for providing feedback.
Ratings affect the relation with subordinates

Frequency Percent Valid Percent
Cumulative
Percent
Valid stongly agree
9 12.9 23.1 23.1
Agree
23 32.9 59.0 82.1
neither agree
nor disagree
2 2.9 5.1 87.2
Disagree
5 7.1 12.8 100.0
Total
39 55.7 100.0
Missing System
31 44.3
Total 70 100.0

97

Ratings affect the relation with subordinates
disagree neither agree nor
disagree
agree stongly agree
P
e
r
c
e
n
t
60
50
40
30
20
10
0
Ratings affect the relation with subordinates
Observation-
Ratings which a superior gives to the subordinates do affect the relation with them, if there had
been a bad feedback or rating then people would start carrying grudges.

Opinion about the present appraisal system

Table: 4.48 Opinion about the present appraisal system

Frequency Percent Valid Percent
Cumulative
Percent
Valid is very effective, has
increased performance
greatly
15 21.4 38.5 38.5
better than the previous
year's scheme
12 17.1 30.8 69.2
same as the prvious one
3 4.3 7.7 76.9
can't say
9 12.9 23.1 100.0
Total
39 55.7 100.0
Missing System
31 44.3
Total
70 100.0



98
Missing
can't say
same as the prvious one
better than the previous
year's scheme
is very effective, has
increased performance
greatly
Opinion about the present appraisal system
Observation-
Employees believe that the present appraisal system is better than the previous ones and is quite
effective too.

The evaluation thus, tells us about how successful e-map has been in achieving its goals, also to
check out its effectiveness, evolution from what it was before and the changes which employees
would like to add in order to make it better. There are may be some flaws in any system and this
too could be seen in this case thus, the evaluation gives a clear picture of the appraisal system
going on at BHEL.













99
FINDINGS
Performance Appraisal system of the company is very minutely
designed and implemented.
This is helpful in making all the organisations decision such as
promotion, transfer identification of training and development needs
and individual planning.
Performance appraisal rates the employees in terms of their
performance.
Performance appraisal takes into account the past performance of the
employees and focuses on the improvement of the future performance of
the employees.






100

CHAPTER 7
Recommendation and Conclusion
After going through the whole system, it could be concluded that the whole process is a great
evolution from the age long processes which were followed in the various public sector units on
India.
But as every system has some flaws so does this system too, there may be some changes which
could be included in order to make it near to perfect if not perfect. But as a whole as a PSU it has
evolved a lot in terms of the various HR related activities.
Conclusion-
After going through the functioning of the performance management system at BHEL, it could
be said that in order to bring about transparency it has brought about an online system through
which people could see what they have been rated where do they stand in terms of their ratings
on what parameters they are being rated, feedback given to them by their seniors and so forth.
The system for performance appraisal is different for the supervisors and the executives while
the workers and supervisors are still going on with their annual CRs the e-map system exists for
the executives. The change that BHEL has brought from this year is that they have made the
confidential reports online now so the supervisors can know about the ratings from the
supervisors thus making the system transparent for there was a problem that the
supervisorsrating depended upon the relation with their superiors.
101
The E-map system has been quite effective with people being satisfied in being able to make
their own action plan and key result areas, also the appraiser can change these KRAs if it does
not go as per the work required out of the people. The appraisal process starts with the self
appraisal technique leading to appraisal by the immediate superior leading to reviewing from the
reviewing officer then to the head of the department and so forth, thus rating does not depend on
rating from only the superiors.
Although people do have problem that the relation with superiors may hamper their performance,
but in a way it is a transparent technique, in which continuous feedback is given, reasons are
given for negative feedback and regular training is given in case of improvement or need.
The superiors give quality time for their subordinates growth too guidance and advices are given
through the Mid year review which helps in improving the yearly performance. There is also a
cascade of performance which helps in achieving the organizations goals, individuals align their
goals as per the departments which sets its agenda as per the units agenda which decides its
objectives as per the mission and vision of the company. To keep a check of each of units or
departments work there is this balance scorecard for appraisal.
Thus we see that the appraisal technique at BHEL is made keeping in mind each and every
aspect of the requirements for a satisfactory and efficient work force.
People differ in their abilities and their aptitudes. There is always some difference between the
quality and quantity of the same work on the same job being done by two different people.
Performance appraisals of Employees are necessary to understand each employees abilities,
competencies and relative merit and worth for the organization.
102
Performance appraisal rates the employees in terms of their performance. Performance appraisal
takes into account the past performance of the employees and focuses on the improvement of the
future performance of the employees.
Performance Appraisal system of the company is very minutely designed and implemented. This
is helpful in making all the organisations decision such as promotion, transfer identification of
training and development needs and individual planning.
To conclude we would sat that the changes are for the betterment of the organisation. The
employees in the organisation are rated on the basis of different area of job work.
Issues related to performance related perks
There are also certain problems which arise, with the implementation of this performance
appraisal system, although BHEL has tried to introduce a system without any flaws still there is
scope of some changes as there are certain issues which are yet to be handled, these issues are as
such:
1. Managers are uncomfortable as transparency makes them answerable and giving reasons
for the rating they have done makes it really tough for them to answer.
2. Tendency to give same score to majority.
3. More vocal employees get better scores, this way a good but silent performer would be
wronged.
4. People with softer targets get better scores, as it is the employees who prepare their
KRAs.
103
5. Assessment on absolute performance vs relative ranking in relation to other employees.
6. Difficult to justify NIL payment to lowest performer as he also contributes to overall
Target.
7. Grade factor has large variation at the higher levels
8. Performance Factor across 5 levels will create huge difference in pay-out within same
grade affecting Team work.
9. Performance Rating of Directors & CMD, there is no one to rate them they are the
supreme powers.
10. A person performing individually although very hard may not be contributing to the
organizations goals.
11. The rating is done even by the general manager who hardly knows anything about the
employees behavior and potential thus, this is a kind of blind appraisal.
12. Supervisors and workers have no clue about the parameters on which they are to be rated
in their CRs.
Recommendations-
After evaluating whole of the performance appraisal system at BHEL there are some changes
which could be introduced to improve the performance to even higher level:
1. Rather than getting the ratings filled by the general manager for an individual employee it
must be limited only to the head of the department who knows the employee and his
potential and also the work he is doing, thus, the rating must only be done by those who
know the employee and the related work.
104
2. There must not be any sought of biasing on the part of the managers, the appraisal must
be based on the performance solely this must be seen by the HOD, who must review the
ratings to find out if there is any kind of biasing going on
3. There must not be any predetermined score in mind while rating the employees, for their
performance it must not be so that they get rated only for some incident, etc.
4. The director and general manager could be rated on the basis of subordinate appraisal,
where the juniors appraise the senior for their efficiency in working and managing skills.
5. Raters should be given training about the method of evaluation.
6. There should be the regular conduction of the Post-Appraisal Interviews.
7. There may be more transparency introduced for example just now through E-map people
can only see analysis not the result
8. Equal marking is not allowed for the same band it may be so that the people are
performing at par but get different ratings this demotivates them, so bands within a band
so that the difference lies based on the performance.
9. Loop holes where improvement could be brought about must be told
10. Parameters for CR must be told.
11. It must not be so that some people have soft targets and some do not at all for it may
bring load on one and the other might be achieving targets easily with hardly any
complicated work in their kitty.
12. It should be taken care of that feedback is given at a regular basis.

105
BIBLIOGRAPHY
BOOKS
Prashad L.M. (2004) Human resource management. Millennium Edition, Prentice
Hall of India , New India
Ashwathapa, Human resorce management and personnel management
Kotller P, (2000), Marketing Management Millennium Edition, Prentice Hall of
India, New Delhi.
Kothari C.R. (2001) Research Methedology 4
th
edition, New age publication

IN-HOUSE MAGAZINE. PAMPHLETS, BROCHURES

Websites
www.BHEL.co.in
www.BHELindustry.co. in





(v)
ANNEXURE
Questionnaire
This questionnaire has been prepared for the core purpose of study there are no hidden motives. You are
requested to kindly spare your valuable time to fill this questionnaire.

Age 1) 18-25 2) 26 -40 3) 41 -60 4) 61 and above

Work Experience 1) less than 5 years 2) 5-15 years 3) 15-25 years 4) Above 25
years

Category 1) Supervisor and below 2) Executives and above

If category choice is 1 please answer Section A else Section B
Section A (Workers and supervisors)
Please mark the following statements as strongly agree/ agree/neither agree nor disagree/disagree/
strongly disagree

Strongly
agree
Agre
e
Neither
agree nor
disagree
Disagree Strongly
disagree

1.a
Annual confidential report affects bonuses

2.a
I could check annual confidential reports (ACR) online

3.a
Online CRs have brought about transparency in the whole system.

4.a
CRs should be reviewed periodically rather than annually

5.a
Timely feedback is given for performance

6.a
Superiors give reasons for negative feedback in confidential reports

7.a
Behavior should be a parameter to be rated in the CRs

8.a
Parameters should be told on which rating is to be done

9.a
Promotions are based on the ratings of CR

10.a
Relation with superiors affect the confidential report

11.a
Present system is better than the previous one.


Section B (Executives and above)
Answer the following as an appraisee:
12. How much time do you spent for your performance planning?
1) A few minutes 2) Half an hour 3) More than half an hour
13. In your opinion performance management system depends upon:
1) Working capability/potential 2) Behavior 3) Relation with superior 4) Honesty
5) Hours of work






(vi)
Please mark the following statements as mentioned:

Strongly
agree
Agree Neither
agree nor
disagree
Disagree Strongly
disagree

14.b1
E- Map is helping in improving the
performance of the organization

15.b1 E-Map has brought about transparency in
the system

16.b1 Better performers receive better incentives

17.b1 Disputes with superiors have no affect on
the ratings given by them

18.b1 Periodic feedback is a necessity

19.b1 Promotions depend upon the ratings

20.b1 Periodic training is received

21.b1 Appraiser periodically discusses about the
goal achievements and areas to improve

22.b1 Mid year review helps in improvement

23.b1 Behavioral traits affect the ratings

24.b1 Disagreement with superiors occur while
deciding upon the KRAs

25.b1 The present system focuses on quality of
work not only on the quantity

Answer the following as an appraiser:
26. How much time do you spent for your subordinates performance planning?
1) A few minutes 2) Half an hour 3) More than half an hour

Strongly
agree
Agree Neither
agree nor
disagree
Disagree Strongly
disagree

27.b2 E-map is an effective technique for
performance appraisal

28.b2 There is a predetermined score in mind
while rating a subordinate

29.b2 The ratings through the e-map helps in
improving the score in the balance
score card

30.b2 Regular feedback should be given
31.b2 There is a need of some confidentiality
32.b2 Too much transparency is making the
system dysfunctional

33.b2 Frequent discussions take place with
subordinates on action plan and KRAs

34.b2 Individuals should create their own
action plans

35.b2 MAP score helps in differentiating a
nonperformer and a performer

36.b2 Midyear review is necessary for
performance improvement.

37.b2 Ratings affect the relation with
subordinates


38. Opinion about the present appraisal system:
1) Is very effective, has increased performance greatly 2) Better than the previous years scheme
3) Same as the previous one 4) Poorer than the previous one 5) Cant say
39. Suggestions to improve the present performance management system



Thank You.




Title of the Thesis: - Study of Recruitment Process in India Infoline

Problem Definition:

India Infoline is facing Recruitment inefficiencies on regular basis that hampers
the normal processing of work as the number of people to be maintained is very
large in number due to which the recruitment staff also faces a lot of hurdles and
is imposed with a lot of pressure.

Main reasons for this problem are:

Keeping up with the recruitment maintenance of more than 18k people.
Recruitment of all branches in PAN India is not local to them but is done in
the Central HRD in Thane branch, Maharashtra which sometime causes
connectivity problems.
HRD in India Infoline is not very old not even as old as the company which is
why systems are not laid down properly.
The company has undergone a lot of diversification since its inception i.e. in
just 8-9 yrs
High Attrition





This requires the problem to be studied in detail to suggest possible measures to
be undertaken:

Research objective:

Lay down a proper Recruitment Mechanism.
Find out the loop holes in the entire recruitment cycle and altering them.
Reduce the Turn out Time and hence improve the effectiveness of the
system.

SWOT Analysis of the Study to be undertaken:

a) Strengths:
Separate recruitment staff not involved in any other HR activities
therefore no overlapping in the study.
Known sample to be studied which is obligatory to answer in the right
manner as the research is supported by the department.

b) Weakness:
Very weak database to support the study.
Difficult to take the response from functional managers in other
departments involved in the recruitment process for their respective
department recruitments.

c) Opportunity:
Easy to implement changes as the HRD is not too old that changes
cannot be made.

d) Threats:
The recruitment team works in connection with other teams also (like
offers, joining, data maintenance team, T&D team, audit team, etc) and
to improve the recruitment process by changing all these teams is a
difficult to make.












(vii)