Performance Appraisal at MPPTCL New Ggits

PERFORMANCE APPRAISAL AT MPPTCL
Performance Appraisal
At
MPPTCL
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INDEX
Sr. No. Particulars Page No.
Forward (i)
Declaration (ii)
Certificate of company (iii)
Acknowledgement (iv)
1. Executive Summary
2. Introduction
3. Company Profile
4. Objective of The Study
5. Research Methodology
6. Data Analysis & Interpretation
7. Findings
8. Suggestions
9. Conclusion
10. Bibliography
11. Annexure
Executive Summary
Few functions better illustrate the conundrum of how to quantify the "people" side of
business than performance management. Leaders across the U.S. are challenged with
defining desirable employee behaviors and refining systems that truly shape good
outcomes - for individual workers and for the organizations that employ them.
Although companies don't agree on a consistent approach to performance

management, nearly every organization nationwide has some kind of system in place
to evaluate workers' performance, along with a process to address related problems.
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Typically, appraisals either compare an employee's work with that of colleagues or

gauge performance against established goals. Companies use performance reviews to
determine employees' pay raises and drive career development.
Critics of performance management point to flaws in companies' systems: lack of

support from senior leadership, bias on the part of evaluators, complex ratings
systems that neither employees nor managers understand, and organizations' failures
to train managers to use performance systems correctly and to deliver feedback
consistently and effectively.
Forced distribution systems, in particular, have generated skepticism and objections.

Dubbed "rank-and-yank" by detractors, forced ratings create a sort of bell curve that
places small percentages of workers at the highest and lowest performance levels and
the majority of employees in the middle. Companies have come under fire for using
these systems to downsize their workforces.
Taking another approach, 360-degree appraisals involve not only supervisors, but
also peers, subordinates and, in some cases, customers in evaluating employees'
work. Although this method can provide a broad perspective, some participants are
uncomfortable rating another's performance. Others may avoid criticizing a peer with
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whom they must work on a daily basis. When raises or promotions depend on a 360-
degree review, concerns may be heightened.
Despite misgivings about forced ranking, peer reviews and other appraisal systems,
organizations remain obliged to keep productivity levels up and to make the most of
the resources at their disposal. Effectively managing the performance of a firm's
workforce lies at the very heart of those capabilities.
Experts note several strategies to help leaders improve performance. Shifting

performance programs from a once-a-year-review focus to one that embraces ongoing
dialogues about performance between managers and employees is a frequent
recommendation. Training managers to accurately assess performance and to conduct
those continuous conversations with workers is another suggested tactic for
strengthening appraisal systems. Ensuring that all employees understand what's
expected of them and how their work will be rated is important, too.
As it does in many business functions, technology plays a role in performance

management. Automation has enabled organizations to shift from paper-based
appraisal systems to electronic formats that facilitate more efficient capture and
exchange of information. Many systems interface with existing HR information
applications, creating linkages with training programs, leadership development
initiatives, succession planning pipelines and the like.
While organizations nationwide continue to struggle with the challenge of assessing

and shaping employee behavior, leaders who model a high standard of performance
themselves - and who hold their workers responsible for the same - position their
companies to best leverage their human capital. It is that human element that holds
the key to the business world's most prized commodity - competitive advantage.
Managing human resources in todays dynamic environment is becoming more and

more complex as well as important. Recognition of people as a valuable resource in
the organization has led to increases trends in employee maintenance, job security, etc
My research project deals with Performance Appraisal as carried out at Life

Insurance corporation. In this report, I have studied &evaluated the performance
appraisal process as it is carried out in the company.
The first section of my report deals with a detailed company profile. It includes the
companys history: its activities and operations, organizational structure, etc. this
section attempts to give detailed information about the company and the nature of its
functioning.
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The second section deals with performance appraisal. In this section, I have given a
brief conceptual explanation to performance appraisal. It contains the definition,
process and significance of performance appraisal.
In the third section of my report, I have conducted a research study to evaluate the
process of performance appraisal at MPPTCL India.; this section also contains my
findings, conclusions, suggestions and feedback.
The forth and final section of this report consists of extra information that I related to
the main contents of the report. These annexure include some graphs and diagrams
relating to the company, graphs relating to the research study and important
documents upon which the project is based.
Introduction To The Topic

Human Resource (or personnel) management, in the sense of getting things done
through people, is an essential part of every managers responsibility, but many
organizations find it advantageous to establish a specialist division to provide an
expert service dedicated to ensuring that the human resource function is performed
efficiently.
People are our most valuable asset is a clich, which no member of any senior
management team would disagree with. Yet, the reality for many organizations are
that their people remain under valued, under trained and underutilized.
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Performance Appraisal is the process of assessing the performance

and progress of an employee or a group of employees on a given
job and his / their potential for future development. It consists of all
formal procedures used in the working organizations to evaluate
personalities, contributions and potentials of employees.
Rationale Of The Study

Performance Appraisal is the important aspect in the organization to evaluate the
employees performance. It helps in understanding the employees work culture,
involvement, and satisfaction. It helps the organization in deciding employees
promotion, transfer, incentives, pay increase.
Introduction To Human Resource Management
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Human Resource (or personnel) management, in the sense of getting things done
through people, is an essential part of every managers responsibility, but many
organizations find it advantageous to establish a specialist division to provide an
expert service dedicated to ensuring that the human resource function is performed
efficiently.
People are our most valuable asset is a clich, which no member of any senior
management team would disagree with. Yet, the reality for many organizations are
that their people remain under valued, under trained and under utilized.
The market place for talented, skilled people is competitive and expensive. Taking on
new staff can be disruptive to existing employees. Also, it takes time to develop
cultural awareness, product / process / organization knowledge and experience for
new staff members.
Functions Of Human Resource Management

Following are the various functions of Human Resource
Management that are essential for the effective functioning of the
organization:
1. Recruitment
2. Selection
3. Induction
4. Performance Appraisal
5. Training & Development
What is performance appraisal?

Performance Appraisal is defined as the process of assessing the
performance and progress of an employee or a group of employees
on a given job and his / their potential for future development. It
consists of all formal procedures used in working organizations and
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potential of employees. According to Flippo, Performance Appraisal

is the systematic, periodic and an important rating of an employees
excellence in matters pertaining to his present job and his potential
for a better job.
Characteristics
1. Performance Appraisal is a process.
2. It is the systematic examination of the strengths and

weakness of an employee in terms of his job.
3. It is scientific and objective study. Formal procedures are

used in the study.
4. It is an ongoing and continuous process wherein the

evaluations are arranged periodically according to a definite
plan.
5. The main purpose of Performance Appraisal is to secure

information necessary for making objective and correct
decision an employee.
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Process
The process of performance appraisal:
1. Establishing performance standards
2. Communicating the Standards
3. Measuring Performance
4. Comparing the actual with the standards
5. Discussing the appraisal
6. Taking Corrective Action
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Limitations
1. Errors in Rating
2. Lack of reliability
3. Negative approach
4. Multiple objectives
5. Lack of knowledge
Methods Of Performance Appraisal

The foregoing list of major program pitfalls represents a formidable
challenge, even considering the available battery of appraisal
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techniques. But attempting to avoid these pitfalls by doing away

with appraisals themselves is like trying to solve the problems of life
by committing suicide. The more logical task is to identify those
appraisal practices that are (a) most likely to achieve a particular
objective and (b) least vulnerable to the obstacles already
discussed.
Before relating the specific techniques to the goals of performance

appraisal stated at the outset of the article, I shall briefly review
each, taking them more or less in an order of increasing complexity.
The best-known techniques will be treated most briefly.
Essay Appraisal
In its simplest form, this technique asks the rater to write a
paragraph or more covering an individual's strengths, weaknesses,
potential, and so on. In most selection situations, particularly those
involving professional, sales, or managerial positions, essay
appraisals from former employers, teachers, or associates carry
significant weight.
Graphic Rating Scale

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This technique may not yield the depth of an essay appraisal, but it
is more consistent and reliable. Typically, a graphic scale assesses a
person on the quality and quantity of his work (is he outstanding,
above average, average, or unsatisfactory?) and on a variety of
other factors that vary with the job but usually include personal
traits like reliability and cooperation. It may also include specific
performance items like oral and written communication.
Field Review
The field review is one of several techniques for doing this. A
member of the personnel or central administrative staff meets with
small groups of raters from each supervisory unit and goes over
each employee's rating with them to (a) identify areas of inter-rater
disagreement, (b) help the group arrive at a consensus, and (c)
determine that each rater conceives the standards similarly. .
Forced-Choice Rating
Like the field review, this technique was developed to reduce bias
and establish objective standards of comparison between
individuals, but it does not involve the intervention of a third party.
Management By Objectives
To avoid, or to deal with, the feeling that they are being judged by
unfairly high standards, employees in some organizations are being
asked to set - or help set - their own performance goals. Within the
past five or six years, MBO has become something of a fad and is so
familiar to most managers that I will not dwell on it here.
Ranking Methods
For comparative purposes, particularly when it is necessary to
compare people who work for different supervisors, individual
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statements, ratings, or appraisal forms are not particularly useful.

Instead, it is necessary to recognize that comparisons involve an
overall subjective judgment to which a host of additional facts and
impressions must somehow be added. There is no single form or
way to do this.
The best approach appears to be a ranking technique involving

pooled judgment.
The two most effective methods are alternation ranking and

paired comparison ranking.
1. Alternation ranking:
Ranking of employees from best to worst on a trait or traits is

another method for evaluating employees. Since it is usually easier
to distinguish between the worst and the best employees than to
rank them, an alternation ranking method is most popular. Here
subordinates to be rated are listed and the names of those not well
enough to rank are crossed. Then on a form as shown below, the
employee who is highest on the characteristic being measured and
the one who is the lowest are indicated. Then chose the next
highest and the next lowest, alternating between highest and
lowest until all the employees to be rated have been ranked.
2. Paired-comparison ranking:
This technique is probably just as accurate as alternation ranking

and might be more so. But with large numbers of employees it
becomes extremely time consuming and cumbersome.
Both ranking techniques, particularly when combined with multiple

rankings (i.e., when two or more people are asked to make
independent rankings of the same work group and their lists are
averaged), are among the best available for generating valid order-
of-merit rankings for salary administration purposes.
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Assessment Centers
So far, we have been talking about assessing past performance.
What about the assessment of future performance or potential? In
any placement decision and even more so in promotion decisions,
some prediction of future performance is necessary. How can this
kind of prediction be made most validly and most fairly?
360 Degree Feedback

Many firms have expanded the idea of upward feedback into what the call 360-degree
feedback. The feedback is generally used for training and development, rather than
for pay increases.
Most 360 Degree Feedback system contains several common features. Appropriate
parties peers, supervisors, subordinates and customers, for instance complete
survey, questionnaires on an individual. 360 degree feedback is also known as the
multi-rater feedback, whereby ratings are not given just by the next manager up in the
organizational hierarchy, but also by peers and subordinates. Appropriates customer
ratings are also included, along with the element of self appraisal. Once gathered in,
the assessment from the various quarters are compared with one another and the
results communicated to the manager concerned.
Another technique that is useful for coaching purposes is, of course,

MBO. Like the critical incident method, it focuses on actual behavior
and actual results, which can be discussed objectively and
constructively, with little or no need for a supervisor to "play God."
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Advantages
Instead of assuming traits, the MBO method concentrates on actual outcomes. If the
employee meets or exceeds the set objectives, then he or she has demonstrated an
acceptable level of job performance. Employees are judged according to real
outcomes, and not on their potential for success, or on someone's subjective opinion
of their abilities.
The guiding principle of the MBO approach is that direct results can be observed
easily. The MBO method recognizes the fact that it is difficult to neatly dissect all the
complex and varied elements that go to make up employee performance.
MBO advocates claim that the performance of employees cannot be broken up into so
many constituent parts, but to put all the parts together and the performance may be
directly observed and measured.
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Disadvantages
This approach can lead to unrealistic expectations about what can and cannot be
reasonably accomplished. Supervisors and subordinates must have very good "reality
checking" skills to use MBO appraisal methods. They will need these skills during
the initial stage of objective setting, and for the purposes of self-auditing and self-
monitoring.
Variable objectives may cause employee confusion. It is also possible that fluid
objectives may be distorted to disguise or justify failures in performance.
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Benefits of Performance Appraisals

Measures an employees performance.
Helps in clarifying, defining, redefining priorities and objectives.
Motivates the employee through achievement and feedback.
Facilitates assessment and agreement of training needs.
Helps in identification of personal strengths and weaknesses.
Plays an important role in Personal career and succession planning.
Clarifies team roles and facilitates team building.
Plays major role in organizational training needs assessment and analysis.
Improves understanding and relationship between the employee and the

reporting manager and also helps in resolving confusions and
misunderstandings.
Plays an important tool for communicating the organizations philosophies,

values, aims, strategies, priorities, etc among its employees.
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Helps in counseling and feedback.
Rating Errors In Performance Appraisals

Performance appraisals are subject to a wide variety of inaccuracies and biases
referred to as 'rating errors'. These errors can seriously affect assessment results.
Some of the most common rating errors are: -
Leniency or severity: - Leniency or severity on the part of the rater makes the
assessment subjective. Subjective assessment defeats the very purpose of
performance appraisal. Ratings are lenient for the following reasons:
a) The rater may feel that anyone under his or her jurisdiction who is rated
unfavorably will reflect poorly on his or her own worthiness.
b) He/She may feel that a derogatory rating will be revealed to the rate to
detriment the relations between the rater and the ratee.
c) He/She may rate leniently in order to win promotions for the

subordinates and therefore, indirectly increase his/her hold over him.
Central tendency: - This occurs when employees are incorrectly rated near the
average or middle of the scale. The attitude of the rater is to play safe. This safe
playing attitude stems from certain doubts and anxieties, which the raters have been
assessing the rates.
Halo error: - A halo error takes place when one aspect of an individual's
performance influences the evaluation of the entire performance of the individual.
The halo error occurs when an employee who works late constantly might be rated
high on productivity and quality of output as well ax on motivation. Similarly, an
attractive or popular personality might be given a high overall rating. Rating
employees separately on each of the performance measures and encouraging raters to
guard against the halo effect are the two ways to reduce the halo effect.
Rater effect: -This includes favoritism, stereotyping, and hostility. Extensively high
or low score are given only to certain individuals or groups based on the rater's
attitude towards them and not on actual outcomes or behaviors; sex, age, race and
friendship biases are examples of this type of error.
Primacy and Regency effects: - The rater's rating is heavily influenced either by
behavior exhibited by the ratee during his early stage of the review period (primacy)
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or by the outcomes, or behavior exhibited by the ratee near the end of the review
period (regency). For example, if a salesperson captures an important contract/sale
just before the completion of the appraisal, the timing of the incident may inflate his
or her standing, even though the overall performance of the sales person may not
have been encouraging. One way of guarding against such an error is to ask the rater
to consider the composite performance of the rate and not to be influenced by one
incident or an achievement.
Performance dimension order: - Two or more dimensions on a performance

instrument follow each other and both describe or rotate to a similar quality. The rater
rates the first dimensions accurately and then rates the second dimension to the first
because of the proximity. If the dimensions had been arranged in a significantly
different order, the ratings might have been different.
Spillover effect: - This refers lo allowing past performance appraisal rating lo

unjustifiably influence current ratings. Past ratings, good or bad, result in similar
rating for current period although the demonstrated behavior docs not deserve the
rating, good or bad.
Roles In The Performance Appraisal Process
a) Reporting Manager
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Provide feedback to the reviewer / HOD on the employees

behavioral traits indicated in the PMS Policy Manual
Ensures that employee is aware of the normalization / performance

appraisal process
Address employee concerns / queries on performance rating, in

consultation with the reviewer
b) Reviewer (Reporting Managers Reporting Manager)
Discuss with the reporting managers on the behavioral traits of all

the employees for whom he / she is the reviewer
Where required, independently assess employees for the said

behavioral traits; such assessments might require collecting data
directly from other relevant employees
c) HOD (In some cases, a reviewer may not be a HOD)
Presents the proposed Performance Rating for every employee of

his / her function to the Normalization committee.
HOD also plays the role of a normalization committee member
Owns the performance rating of every employee in the department
d) HR Head
Secretary to the normalization committee
Assists HODs / Reporting Managers in communicating the

performance rating of all the employees
e) Normalization Committee
Decides on the final bell curve for each function in the respective
Business Unit / Circle
Reviews the performance ratings proposed by the HODs,

specifically on the upward / downward shift in ratings, to ensure an
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unbiased relative ranking of employees on overall performance, and

thus finalize the performance rating of each employee.
Key Concepts In PMS

In order to understand the Performance Management System at BHARTI, some
concepts need to be explained which play a very important role in using the PMS
successfully. They are:
KRAS (KEY RESULT AREAS): The performance of an employee is

largely dependent on the KRA score achieved by the employee during that
particular year. Thus, it is necessary to answer a few basic questions i.e.
o What are the guidelines for setting the KRAs for an employee?
o How does an employee write down his KRAs for a particular

financial year?
o KRAs: The Four Perspectives.
o How is the KRA score calculated for an employee on the basis of the
targets sets and targets achieved?
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BEHAVIORAL TRAITS: Some of the qualitative aspects of an employees

performance combined with the general behavioral traits displayed by the
employee during a year constitutes his behavior traits. An employee is assigned
the rating on the basis of the intensity of the behavior displayed by him. They
play a very important role in the deciding the final performance rating for an
employee as is even capable of shifting the rating one level
upwards/downwards.
BHARTI 2010 LEADERSHIP COMPETENCY FRAMEWORK: This

competency framework is a simple and structured way to describe the elements
of behaviors required to perform a role effectively. This framework also tries to
assess the performance of an employee objectively.
THE PERFORMANCE RATING PROCESS: The rating process tries to

explain the four different types of rating that an employee can achieve i.e. EC,
SC, C and PC. It also explains the criteria, which is considered for awarding
any of these ratings to the employee.
PROMOTION AND RATING DISRTRIBUTION GUIDELINES: The

promotion and normal distribution guidelines provide the framework within
which the performance appraisal process has to work. It is very important that
the HR department pays due attention to these guidelines while preparing the
bell curves for various functions and the consolidated bell curve for all the
functions. These guidelines also help in deciding upon the promotion cases in a
year.
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Performance Rating Process

EXCEPTIONAL CONTRIBUTOR (EC) SIGNIFICANT CONTRIBUTOR (SC)
Performs consistently and

substantially above
expectations in all areas Performs above
expectations in all areas
Achieves a final score greater
than or equal to 115% Achieves final score
between 100-114%
Consistently delivers on
stretch targets Versatile in his/ her area of
operation
Is proactive
Develops creative solutions
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Spots and anticipates and require little / minimal

problems, implements supervision
solutions
Sets examples for others
Sees and exploits
opportunities Take ownership of own
development
Delivers ahead of time
Coaches others
Sees the wider picture-
impacts across business Demonstrates business
initiative
Focuses on whats good for
the business Is self motivated
Seen as role model by others Supportive team player
Recognized as exceptional by Leads own team very

other functions as well effectively
Motivates others to solve Demonstrate functional

problems initiative
Develops others
Provides open and honest

feedback
Able to establish and lead

cross-functional teams
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COMPANY
PROFILE
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INTRODUCTION
Under Power Sector Reform Programme, Government of Madhya Pradesh has
unbundled the M.P. State Electricity Board into five wholly owned State
Government Companies, out of which one each has been independently assigned
Electricity Generation and Transmission functions and the balance three are
Distribution companies responsible for electricity distribution in their respective
jurisdiction. M.P. Power Transmission Company Ltd. (MPPTCL) is one of such five
companies carved out of MPSEB to undertake the activities relating to electricity
transmission within the State of M.P.
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Subsequently, in May'2006 one more Company, namely MP Power Trading Co. Ltd.
has been carved out of MPSEB to look after trading of Power and other associated
activities.
M.P. Power Transmission Company was incorporated on 22 nd November, 2001 and it

formally began its operations under an Operation & Management Agreement
executed with MPSEB on 1st July, 2002, which provided for undertaking all activities
relating to intra-state transmission of electricity for and on behalf of MPSEB.
Further, in exercise of the powers conferred by sub-section (1) of Section 39 of
Electricity Act, 2003, GoMP has nominated this Company as the State Transmission
Utility w.e.f. 01.06.2004.
Subsequently, vide GoMP notification No.3679/FRS/12/13/2002, dated 31.05.2005,

the Company has been provided functional autonomy with effect from 01.06.2005.
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Thus, with effect from 01.06.2005, the Company has assumed the functions of intra-
state transmission of electricity, State Transmission Utility and State Load Despatch
Centre as its own business and not as an Agent of Madhya Pradesh State Electricity
Board.
The Registrar of Companies, on 16.07.2002, has issued the Certificate for

commencement of business to MPPTCL.
The constitution and composition of the State Electricity Boards, is laid down
under section 5 of the Electricity (supply) Act, 1948. Accordingly the Board shall consist
of not less than three and not more than seven members appointed by the State
Government, one of whom would be appointed a Chairman. The chairman conducts its
full time conduct the day-to-day work. The ex-officials members attend the meeting of
the Board and they represent the policy of the government.
The Government of Madhya Pradesh vide order dated 1 st July, 02 has incorporated
Madhya Pradesh Power Transmission Company Limited as a wholly owned Government
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of Madhya Pradesh corporations under the Companies Act, 1956 to undertake activities
of distribution and retail supply for and on behalf of Madhya Pradesh State Electricity
Board in the areas covered by the Commissionaires of Indore and Ujjain.
Govt. of MP proposed a transient phase in which the assets and liabilities would
continue to be serviced by the Board, with only the operational activities being vested
onto this order dated 16th July, 02 has granted approval to this reorganization and bringing
in economy and efficiency in the operational activities of electricity sector.
Objectives Of The Study

To carry out the study of MPPTCL, we framed the following objectives
1. Identification of the technique of performance appraisal followed in MPPTCL.
2. Employee attitude towards the present appraisal system.
3. Review of the current appraisal system in order to
i. Enhance productivity
ii. Attain global standards
4. To provide suggestions & recommendations from the study conducted.
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Research Methodology
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Research Methodology
Research
The research design of this project is exploratory. Though each research study has its
own specific purpose but the research design of this project on MPPTCL is
exploratory in nature as the objective is the development of the hypothesis rather than
their testing. The research designs methods of financial analysis. Through of
comparative balance sheet in comparative statement, I am studying on balance sheet
of MPPTCL of five year. So taking comparative statement, I am going to analyzed of
five years balance sheet of MPPTCL.
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Methodology
Every project work is based on certain methodology, which is a way to systematically
solve the problem or attain its objectives. It is a very important guideline and lead to
completion of any project work through observation, data collection and data
analysis. Research Methodology comprises of defining & redefining problems,
collecting, organizing & evaluating data, making deductions & researching to
conclusions.
According to Clifford Woody
Research design:
Research Design refers to "framework or plan for a study that guides the collection
and analysis of data". A typical research design of a company basically tries to
resolve the following issues:
a) Determining Data Collection Design
b) Determining Data Methods
c) Determining Data Sources
d) Determining Primary Data Collection Methods
e) Developing Questionnaires
f) Determining Sampling Plan
(1) EXPLORATIVE RESEARCH DESIGN:
Explorative studies are undertaken with a view to know more about the problem.
These studies help in a proper definition of the problem, and development of specific
hypothesis is to be tested later by more conclusive research designs. Its basic purpose
is to identify factors underlying a problem and to determine which one of them need
to be further researched by using rigorous conclusive research designs.
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(2) CONCLUSIVE RESEARCH DESIGN:
Conclusive Research Studies are more formal in nature and are conducted with a
view to eliciting more precise information for purpose of making marketing
decisions.
These studies can be either:
a) Descriptive or
b) Experimental
Thus, it was mix of both the tools of Research Design that is, Explorative as well as
Conclusive.
SAMPLING PLAN:
Sample Size = 100 Employees
Sample Area =MPPTCL Office,
Jabalpur
Duration = Two (1) Month.
DATA COLLECTION
Data Sources:
i. Secondary Data through Internet
ii. Primary Data through Questionnaire
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Data Analysis
&
Interpretation
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Data Analysis And Interpretation
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Q1. Performance appraisal is an important tool to evaluate performance of

employee in MPPTCL.
Particular No. of Respondents Percentage
Strongly Agree 20 20%
Agree 54 54%
Neutral 13 13%
Disagree 13 13%
Strongly Disagree 0 0%
TOTAL 100 100%
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INTERPRETATION :-
80% of the sample respondents were agreed that the Effectiveness of Welfare Measures were
Sufficient, where as 13% of the respondents agreed that the Effectiveness of Welfare Measures were
hardly, while 7% of the respondents agreed that the Effectiveness of Welfare measures are Fully
Effective.
Over the analysis of performance appraisal system is an important tool to

evaluate performance of the employee in MPPTCL out of 20 respondents are strongly
agree because of , 20% of the respondents were strongly agree, 54% of the them
were agree, 13% of the respondents each were neutral and disagree and none of
the respondent was strongly disagree.
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1. The objective of appraisal system are clear to all employees
Agree 54 54%
Neutral 13 13%
Disagree 13 13%
TOTAL 100 100%
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Fig.2
Over the analysis of objective of appraisal system are clear to all employees out of 20
respondents, 7% of the respondents were strongly agree, 13% of the them were
agree, none of the respondents each were neutral 60% of the respondents were
disagree and 20% of the respondent were strongly disagree.
2. Appraisal system inMPPTCL ensures that that every individual is clearly

aware about its functions and responsibilities
Agree 54 54%
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Neutral 13 13%
Disagree 13 13%
TOTAL 100 100%
Fig. 3
Over the analysis of Appraisal system inMPPTCL ensures that that every individual
is clearly aware about its functions and responsibilities out of 20 respondents, 60% of
the respondents were strongly agree, 20% of the them were agree, 7% of the
respondents each were neutral 7% of the respondents were disagree and none of
the respondents were strongly disagree.
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3. Performance appraisal system inMPPTCL provides a platform for identifying

training needs of employees
Agree 54 54%
Neutral 13 13%
Disagree 13 13%
TOTAL 100 100%
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Fig. 4
Over the analysis of Performance appraisal system inMPPTCL provides a platform

for identifying training needs of employees, out of 20 respondents 7% of the
respondents were strongly agree, 7% of the them were agree, 13% of the
respondents were neutral 20% of the respondents were disagree and 53% of the
respondents were strongly disagree.
4. The counseling is satisfactorily done to judge the low performance and to

improve his/ her performance.
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Agree 54 54%
Neutral 13 13%
Disagree 13 13%
TOTAL 100 100%
Fig. 5
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Over the analysis of The counseling is satisfactorily done to judge the low
performance and to improve his/ her performance, out of 20 respondents 13% of the
respondents each were neutral 13% of the respondents were disagree and 7% of
5. Most of the training programme are initiated after a need analysis has indicated
that programme is needed.
Agree 54 54%
Neutral 13 13%
Disagree 13 13%
TOTAL 100 100%
Page
44
Fig. 6
Over the analysis of Most of the training programme are initiated after a need
analysis has indicated that programme is needed, out of 20 respondents 13% of the
6. The present performance appraisal system is able to focus on personality trait

of employees for better performance

Page
45
Agree 54 54%
Neutral 13 13%
Disagree 13 13%
TOTAL 100 100%
Fig. 7
Page
46
Over the analysis of The present performance appraisal system is able to focus on
personality trait of employees for better performance, out of 20 respondents 20% of
7. Performance is the main objective of performance appraisal in MPPTCL.
Agree 54 54%
Neutral 13 13%
Disagree 13 13%
TOTAL 100 100%
Page
47
Fig. 8
Over the analysis of Performance is the main objective of performance appraisal in

MPPTCL, out of 20 respondents 40% of the respondents were strongly agree, 40%
of the them were agree, 7% of the respondents each were neutral 7% of the
respondents were disagree and 7% of the respondents were strongly disagree.
8. Promotion and rewards are a major factor in influencing performance if

administered objectively.
Page
48
Agree 54 54%
Neutral 13 13%
Disagree 13 13%
TOTAL 100 100%
Page
49
Fig. 9
Over the analysis of Promotion and rewards are a major factor in influencing
performance if administered objectively, out of 20 respondents 27% of the
respondents each were neutral 13% of the respondents were disagree and none of
9. Performance appraisal is carried out to assess the potential of employees to

assign higher responsibility and more task.
Agree 54 54%
Neutral 13 13%
Disagree 13 13%
TOTAL 100 100%

Page
50
Fig. 10
Over the analysis of Performance appraisal is carried out to assess the potential of
employees to assign higher responsibility and more task, out of 20 respondents 7% of
Page
51
10.Potential appraisal help in succession planning inMPPTCL ?
Agree 54 54%
Neutral 13 13%
Disagree 13 13%
TOTAL 100 100%
Page
52
Fig. 11
On the analysis over Potential appraisal help in succession planning inMPPTCL out
of 20 respondents 67% of the respondents said yes and 33% of the respondents said
no.
11.Performance appraisal is an important tool to evaluate performance of

employee in MPPTCL.

Page
53
Agree 54 54%
Neutral 13 13%
Disagree 13 13%
TOTAL 100 100%
Fig.12
Page
54
Over the analysis of performance appraisal system is an important tool to evaluate

performance of the employee inMPPTCL out of 60 respondents of group 2, 28% of
respondents each were neutral and disagree and 4% of the respondent was
strongly disagree.
12.The objective of appraisal system are clear to all employees ?
Agree 54 54%
Neutral 13 13%
Disagree 13 13%
TOTAL 100 100%
Page
55
Fig.13
Over the analysis of objective of appraisal system are clear to all employees, out of
60 respondents 18% of the respondents were strongly agree, 10% of the them were
agree, 4% of the respondents were neutral 46% of the respondents were disagree
and 22% of the respondent were strongly disagree.
13.Appraisal system inMPPTCL ensures that that every individual is clearly

aware about its functions and responsibilities ?
Page
56
Agree 54 54%
Neutral 13 13%
Disagree 13 13%
TOTAL 100 100%
Fig. 14
Page
57
Over the analysis of Appraisal system inMPPTCL ensures that that every individual
is clearly aware about its functions and responsibilities, out of 60 respondents 54% of
14.Performance appraisal system inMPPTCL provides a platform for identifying

training needs of employees ?
Agree 54 54%
Neutral 13 13%
Disagree 13 13%
TOTAL 100 100%
Page
58
Fig. 15
Over the analysis of Performance appraisal system inMPPTCL provides a platform

for identifying training needs of employees, out of 60 respondents 6% of the
Finding
Page
59
1. Majority of employees are of the opinion that business environment is highly

competitive.
2. Nearly half of the employee say the competition is faced from public, private,
cooperative and other sectors.
3. Majority of employee find very difficult to survive, grow, stabilize and excel in
their performance.
4. For doing banking business effectively the strategies adopted are use of advance
technology, changes in working process and improving their performance.
5. Out of resources used in banking business the manpower is most important and
money is ranked second.
6. Nearly three-fourth of banks agreed that the major advantages of higher
performance to banks are quality and quantity improvement, high productivity,
employees satisfaction and higher profitability.
7. More than half of employee said that management of company is highly interested
to manage performance of employees consistently.
8. More than half of employer said that the major functions performed by
performance management are setting goals and performance standards,
communication, coaching feedback, performance appraisal and development
planning for future.
Suggestions
Page
60
Promotions should be given to the employees at the scheduled intervals and to

the employees who deserve it.
Rewards should also be provided to the employees who have done outstanding
jobs in their field.
Performance appraisal system should be implied seriously and potential

appraisal for the employees should be carried out at least once in in a year.
Training schedules for the employees should be conducted at regular intervals

and not only when it is required.
Page
61
Conclusion
1) It is concluded that performance appraisal is an important tool to evaluate
performance of employee in MPPTCL.
2) performance Appraisal system in MPPTCL ensures that every individual is

clearly aware about its functions and responsibilities.
3) Performance appraisal system in MPPTCL provides a platform for

identifying training needs of employees.
4) On the analysis over most of the training programme are initiated after a
need analysis has indicated that programme is needed.
5) promotion s the main objective of appraisal in MPPTCL.
6) potential appraisal once in a year and information should be given to

employees about their future prospects.
7) performance appraisal system strengthen the relationship between superior

and subordinate for better performance.
.8) On the analysis over the appraisal system encourages open communication
between each appraiser and appraise through performance review it was
concluded that most of the respondents were in the opinion over this.
Page
62
Bibliography
Bibliography
Page
63
K. Ashwathappa-Human Resource and Personnel Management, The McGraw-Hill

companies, 4th Edition.
VSP Rao-Human Resource management, Prof. N.J.Yasaswy, 1st Edition.
Kothari C.R-Research Methodology-Methods and Techniques- New Age

International (P) Limited, 2nd Edition.
Journals
HR Vision 2005 (MPPTCL) HRM Corporate Journal
MPPTCL Quarterly in house Journal on HR.
WEBSITES
www. mpptcl.in
Page
64
Annexure
Questionnaire
Interview Schedule for Identifying the Performance Appraisal
1. Name of the respondent (optional) _________________________________

Page
65
2. Gender Male Female
3. Age: Below 25 25-35 36-45 Above 45
4. Department: ___________________________________________________
5. Designation: ____________________________________________________
6. Years of Experience: less than 5 years 5-15 years
16-25 years above 25 years
7. Monthly Income:
Up-to Rs. 12,000 Rs. 12001 Rs. 20,000
Above Rs. 20,000.
8. Are you Aware of technique of performance appraisal being followed at MPPTCL?
Yes No
8. Were you informed about the performance appraisal model, used in the MPPTCL,
during your Induction?
Yes No
9. In your opinion performance appraisal is ____________
a. Evaluation of Employees
b. Promotion of Employees
c. Job satisfaction of Employees
d. Motivation
10. The performance standards are communicated to the employees in

advance______________________________________________
Yes No Never
Page
66
11. Employees perception to the frequency of appraisal
a. Once in a year
b. Once during the service period
c. Continuous
d. Never
e. Cant say
12. If continuous appraisal- what is the gap between two appraisal period
a. Quarterly
b. Half Yearly
c. Yearly
13. Appropriate method of conducting the performance appraisal.
a. Ranking Method
b. Paired Comparison
c. Critical Incidents
d. MBO
e. 360 degree
f. Assessment centre
14. Who is authority to do the appraisal?
a. Superior
b. Peer
c. Self-Appraisal
d. Sub-ordinate
Page
67
e. Consultant
f. All the above
g. Superior + peer
15. In your opinion performance Appraisal system of your organization is related to

which of the following?
a. Retention of Employees
b. Promotion
c. Monetary Benefit/ Incentives
16. Is the Top level Management partial in Performance Appraisal
Yes No
17. Do you think Performance Appraisal helps to change behaviour of Employees
Yes No
18. If given a chance or an opportunity would you like that the current Appraisal
procedure should be reviewed?
Yes No
Page
68
Page
69

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PERFORMANCE APPRAISAL AT MPPTCL

Although companies don't agree on a consistent approach to performance

Typically, appraisals either compare an employee's work with that of colleagues or

Critics of performance management point to flaws in companies' systems: lack of

Forced distribution systems, in particular, have generated skepticism and objections.

Experts note several strategies to help leaders improve performance. Shifting

As it does in many business functions, technology plays a role in performance

While organizations nationwide continue to struggle with the challenge of assessing

Managing human resources in todays dynamic environment is becoming more and

My research project deals with Performance Appraisal as carried out at Life

Introduction To The Topic

Performance Appraisal is the process of assessing the performance

Rationale Of The Study

Introduction To Human Resource Management

Functions Of Human Resource Management

5. Training & Development

What is performance appraisal?

potential of employees. According to Flippo, Performance Appraisal

2. It is the systematic examination of the strengths and

3. It is scientific and objective study. Formal procedures are

4. It is an ongoing and continuous process wherein the

5. The main purpose of Performance Appraisal is to secure

1. Establishing performance standards

2. Communicating the Standards

4. Comparing the actual with the standards

5. Discussing the appraisal

6. Taking Corrective Action

Methods Of Performance Appraisal

techniques. But attempting to avoid these pitfalls by doing away

Before relating the specific techniques to the goals of performance

The best-known techniques will be treated most briefly.

Graphic Rating Scale

statements, ratings, or appraisal forms are not particularly useful.

The best approach appears to be a ranking technique involving

The two most effective methods are alternation ranking and

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

This technique is probably just as accurate as alternation ranking

Both ranking techniques, particularly when combined with multiple

360 Degree Feedback

Another technique that is useful for coaching purposes is, of course,

Benefits of Performance Appraisals

Helps in clarifying, defining, redefining priorities and objectives.

Motivates the employee through achievement and feedback.

Facilitates assessment and agreement of training needs.

Helps in identification of personal strengths and weaknesses.

Plays an important role in Personal career and succession planning.

Clarifies team roles and facilitates team building.

Plays major role in organizational training needs assessment and analysis.

Improves understanding and relationship between the employee and the

Plays an important tool for communicating the organizations philosophies,

Helps in counseling and feedback.

Rating Errors In Performance Appraisals

c) He/She may rate leniently in order to win promotions for the

Performance dimension order: - Two or more dimensions on a performance

Spillover effect: - This refers lo allowing past performance appraisal rating lo

Roles In The Performance Appraisal Process

Provide feedback to the reviewer / HOD on the employees

Ensures that employee is aware of the normalization / performance

Address employee concerns / queries on performance rating, in

b) Reviewer (Reporting Managers Reporting Manager)

Discuss with the reporting managers on the behavioral traits of all

Where required, independently assess employees for the said

c) HOD (In some cases, a reviewer may not be a HOD)