1.

INTRODUCTION

Human Resource Management is developed as a part of management. In simple sense,

Human Resource Management means employing people, developing their resources ,utilizing,

maintaining and remunerating their services in tune with the job and organizational requirements

with a view to contribute to the goals of the organization , individual and the society (Mamoria

,1999)

In this process, the performance Appraisal plays a major part in ensuring organizational

effectiveness through correcting employees for the desired standard and improved performance, and

suggesting the change in employee’s behavior.

 A recent development in Human Resource Management indicates that the Performance

Appraisal is the basis for employee development. Performance Appraisal indicates the gap between

the level of desired performance and the level of actual performance. This gap should be bridged

through human resource development techniques like training, executive development etc.

Definition:

“The overall objective of Performance Appraisal is to improve the efficiency of an enterprise

by attempting to mobilize the best possible efforts from individuals employed in it. Such appraisal

achieves four objectives including the salary reviews, the development and training of individuals,

planning job rotation and assistance promotions”.

Performance appraisal deals with the assessment of the extent of the employee’s achievement

in attaining the stipulated tasks, activities or results. Individual performance is the product of ability

to perform a particular job, motivation and organization support. - RAO, 1990

PERFORMANCE DOMAINS IN ORGANIZATIONS

Performance domains are those that lend themselves to evaluation of outputs. The following are
considered performance domains in organizations:
 Mission

 Process

 Mission critical sub system

 Individual

In all the above, the criteria for achievement can be listed and the outputs evaluated.
The translation of an organization Vision into individual activities and work plan is as follows:

Vision/Mission

Strategy Work
Plan

Goal Role
s s

Outcomes
(KRA’s)

Activities &
Tasks

Outputs Tasks Decisio

Results Weekly/mont ns
(Qualitative) hly/ quarterly Responsibilit
Targets y/ authority
(Quantitative)

KEY ELEMENTS IN PMS:

MEANING OF PERFORMANCE APPRAISAL
Performance appraisal may be defined as a structured formal interaction between a
subordinate and supervisor, that usually takes the form of a periodic interview (annual or semi-
annual), in which the work performance of the subordinate is examined and discussed, with a view
to identifying weakness and strengths as well as opportunities for improvement and skills
development.

Performance appraisal is the systematic description of an employee’s job relevant strengths

and weaknesses in the work-spot, normally including both the quantitative and qualitative aspects of

performance. It is a continuous process in every large scale organization.

PERFORMANCE APPRAISAL PROCESS

1. Objectives of performance appraisal should be established before hand.

2. Standards of performance appraisal should also be established and communicated to the

Appraisees.

3. Selection of suitable appraiser should be made.

4. Collection of information by rater regarding the job and job-holder is to be carried out.

5. Method of performance appraisal is to be selected.

6. Actual performance is to be measured.

7. Actual performance must be compared with the standards.

8. Follow-up action.

NEED FOR PERFORMANCE APPRAISAL

 To identify training needs of the employee.

 To make the employee realize where he stands and to improve in areas where improvement

is required.

 To utilize the manpower more effectively.

 To improve the efficiency and productivity of the organization.

 To motivate employees to perform better.

 To maximize the use of human potentials.

 To make the performance base/parameters of the company known to the employees.

 As a tool for counseling and guidance.

  For future job assignments.

 It helps the appraisers to prevent grievances and to take disciplinary measures.

PURPOSE OF PERFORMANCE APPRAISAL

The purpose of performance appraisal is to identify the issues, eliminate any potential

problems, and to set new goals for achieving high performance.

 Helps to create and maintain a satisfactory level of performance among the

employees of the organization.

 This system helps the superiors to have a proper understanding about their

subordinates and to facilitate fair and equitable compensation based on the

performance.

 This system contributes to the employee growth and development through training,

self and management development programs.

 This system is a future oriented activity showing employees where things have gone

wrong, how to set everything in order and deliver results using their potential in a

proper way.

METHODS OF PERFORMANCE APPRAISAL

With the development of the appraisal system, a number of methods or techniques of

performance appraisal have been developed.

TRADITIONAL METHODS

Graphics Rating Scales:

 Graphic rating scales compare individual performance to an absolute standard. In this

method, judgments about performance are recorded on a scale. This method is also known as linear

rating scale or simple rating scale. The appraisers are supplied with printed forms, one for each

employee.

These forms contain a number of objectives, behavior and trait-based qualities and characters

to be rated like quality and volume of work, job knowledge, dependability, initiative attitude etc. in

the case of workers and analytical ability creative ability, initiative, leadership qualities, emotional

stability in case of managerial personnel. These forms contain rating of scales. Rating scales are of

two types namely Continuous rating scales and discontinuous rating scales.

Ranking Method:

Under this method, the employees are ranked from best to worst on some characteristics. The

rater first finds the employee with the highest performance and the employees with the lowest

performance in that particular job category and rates the former as the best and the later as the

poorest. Then the rater selects the next highest and next lowest and so on until he rates all the

employees in that group. Ranking can be relatively easy and inexpensive, but its reliability and

validity may be open to doubt.

Paired Comparison Method:

This method is relatively simple. Under this method, the appraiser ranks the employees by

comparing one employee with all other employee in a group, one at a time.

Forced Distribution Method:

 The rater may rate his employees at the higher or lower end of the scale under the earlier

methods. Forced distribution method is developed to prevent the raters from rating too high or too

low. Under this method, the rater after assigning the points to the performance of each employee has

to distribute his ratings in a pattern to conform to normal frequency distribution.

Checklist Methods:

The checklist is a simple rating technique in which the supervisor is given with a list of

statements or words and asked to check statements representing the characteristics and performance

of each employee. There are three types of checklist methods, namely simple checklist method,

weighted checklist method and force choice method.

Essay or Free Form Appraisal:

This method requires the manager to write a short essay describing each employee’s

performance during the rating period. This format emphasizes evaluation of overall performance

based on strength/weakness of employee performance rather than specific job dimensions.

Group Appraisal:

Under this method, an employee is appraised by a group of appraisers. The group consists of

the immediate supervisor of the employee, other supervisors who have a close contact with

employee’s work, manager or head of the department and consultants.

Confidential Reports:
 Assessing the employee’s performance confidentially is a traditional method of performance

appraisal. Under this method, the superior appraises the performance of his subordinates based on

his observations, judgments and intuitions and finally prepares report on it. This method is mostly

followed in public sector organizations.

MODERN METHODS

Behaviorally Anchored Rating Scales:

BARS method combines elements of the traditional rating scales and critical incident

methods. Using BARS, job behaviors from critical incident-effective and ineffective behaviors are

described more objectively. The method employs individuals who are familiar with a particular job

to identify its major components. Then they rank and validate specific behavior for each of the

components.

Human Resource Accounting:

Human Resource Accounting deals with cost of and contribution of human resources to the

organization. Cost of the employee includes cost of manpower planning, recruitment, selection,

induction, orientation, placement, training and development wages, benefits etc. Contribution of the

employees (i.e) employee services can be measured by labor productivity or value added by the

human resources.

Management by Objectives:

Management by objectives is a process whereby the superior and subordinate managers of an

organization jointly identify its common goals, define each individual’s major areas of responsibility
in terms of results expected of him and use these measures of guides for operating the unit and

assessing the contribution of its members.

Thus, MBO focuses attention on participative management and set goals that are tangible, verifiable

and measurable.

Psychological Appraisal:

Psychological Appraisals are conducted to assess the employee’s potential. Psychological

appraisals consist of in depth interviews, psychological tests, consultation and discussion with the

employees, discussion with the superiors, subordinates and peers and reviews of other evaluation.

Evaluation is conducted in the areas of employee’s intellectual abilities, emotional stability,

motivational responses, reasoning and analytical abilities, and interpretation and judgment skills,

social ability. The psychological appraisal results are used for decision about employee’s placement,

career planning and development and training and development.

CRITERIA & TYPES OF PERFORMANCE APPRAISAL

CRITERIAS:

The criteria for designing appropriate appraisal processes also leads to an understanding of the type
of appraisal process to be selected:
Focus

Depending on the focus, the appraisal can be either Task focused or Development focused.
However, since organizations exist for achieving certain goals, the task focused cannot be dispensed
with. Hence most organizations combine both and carry out a Holistic appraisal.

Confidentiality
 Depending on the extent of confidentiality required by the system (which may sometimes be
requisite of appraisal being conducted with the sole requisite of differentiating and retaining only
good performers, or when the sharing of the process, goals and evaluation methods may affect the
conduct of further appraisals), the appraisal process can be either ‘Confidential’ or ‘Open’.

Periodicity

Depending on the industry, periodicity can be Quarterly, Bi-annual or annual. In high-skilled

industries where there demand is high and supply is low, organizations would prefer to have shorter
appraisal cycles with the intent of using reward systems to retain employees. It is also a way to keep
up with the industry standards with respect to compensation.

TYPES:

Line Manager Appraisal:

It is a mechanism to link individual goals and strategic direction. It focuses on objectives and

targets. It can combine regular informal review of performance with formal appraisal to agreed

timescales. It may also include rating scales for comparison purposes.

Self-Appraisal:

It is often used as preparation for the line manager/subordinate appraisal. Individuals take the

lead in reviewing their own performance. It encourages individuals to think about their performance

and development needs in a focused way. The combination of involvement and responsibility

generates commitment to personality taking action.

Upward Appraisal:

It is appropriate in multi-level or source appraisal settings. It may take place in the context of

the subordinate’s appraisal.

Peer Appraisal:
 Individuals nominate their own appraiser. It allows choice of peers who are respected for

relevant knowledge of professional specialization. It is relevant in situation where there may be no

immediate manager in a position to appraise.

Team review and appraisal:

Its main feature is establishing team success and areas for improvement. It aids the team-

building and objective-setting process. It encourages open and constructive comment among the

team.

Competency-based Appraisal:

It sets targets for the roles as specific objectives or other measurable objectives. It focuses on

behavioral descriptions of the standards expected in fulfilling the role. It is a development plan

specifying training, development and support towards achieving targets and competencies. It is a

system of periodic review leading to annual appraisal of performance against targets and

achievement of competences.

360-degree feedback:

Its focus is on the development of skills and competences which will improve organizational

performance. Appraisees may include either direct or other managers, subordinates, peers or

customers. Feedback is collected systematically through formally constructed questionnaires. It can

include self-assessment for comparison with the views of others. It is essentially based on ratings

which more often than not are aggregated to represent an average score.

COMMON APPRAISAL ERRORS:

Contrast Effect:
 Tendency of a rater to evaluate people in comparison with other individuals rather than

against the standards for the job.

First Impression Error:

Tendency of a rater to make an initial positive or negative judgment of an employee and

allow that first impression to color or distort the later information.

Halo/Horns Effect:

Inappropriate generalizations from one aspect of an individual’s performance to all areas of

that person’s performance. Halo error occurs when a rater assigns ratings for several dimensions of

performance on the basis of an overall general impression of the ratee.

Similar-To-Me Effect:

The tendency of individuals to rate people who resemble themselves more highly than they

rate others. This is also known as the Personal bias rating error.

Central Tendency:

The inclination to rate people in the middle scale even when their performance clearly

warrants a substantially higher or lower rating. This type of average rating fails to discriminate

between subordinates.

Negative And Positive Skew:

The tendency of rating of all individuals as higher as or lower than their performance

warrants. This is also known as Leniency or Harshness error.

Attribution Bias:
 The tendency to attribute performance failings to factors under the control of the individual

and performance successes to external causes.

Recency Effect:

The tendency of minor events that have happened recently to have more influence on the

rating than major events of many months ago. Good performance towards the end of an appraisal

period may dominate the indifferent performance during the beginning of the appraisal period or the

vice versa.

Stereotyping:

The tendency to generalize across groups and ignore individual differences. This is

attributing almost instantly, instinctively and without conscious control.

KEY ELEMENTS OF THE APPRAISAL PROCESS

The key elements of the appraisal process are

 Administration

 Assessment

 Feedback

ADMINISTRATION PROCESS
The important factors influencing effective administration are timeliness and rigour. The
appraisal process needs to be initiated on time, administered within the time frame and results
(increments, rewards etc) awarded on time. The process itself must be carried out with a lot of rigour
and energy, such that it motivates employees to participate with the same energy and spirit.
ASSESSMENT PROCESS

The assessment goals should focus on strengths, use a long term perspective, should build on
successive appraisal outcomes and serve as a tool for career growth.
The assessment outcomes are a clear understanding of extent of performance of the employee, his
achievement of goals, training requirements and agreed objectives for the next review period.
The assessment discussion should:
 Focus on the employee accomplishments.

 Point out areas for improvement.

 Address questions about the year to come

 Focus on competencies required for future roles

 Work on defining a path forward

 Provide examples to support statements

It is important for the assessor to be:

 Authentic with the intent to communicate actual performance

 Empathetic and supportive

 Be direct and not beat around the bush, but avoid being blunt and harmful

 Be equal, be human

 Talk to and not talk down

 Able to deliver feedback about both good and bad performance without branding the personas
good or bad.

FEEDBACK PROCESS
 There is enough material available in books, articles and on the internet about ways of giving
effective feedback. However, the key points to remember about the process itself are that:

 It has to be scheduled with enough time for a complete discussion

 It should leave doors open for further discussion if required

 It should encourage a component of mutuality of exchange

 It should provide scope to record the feedback meaningfully but objectively

 It should deal with any residues that the employee is carrying

 It should reinforce the faith the employee has on the system

BENEFITS OF PERFORMANCE APPRAISAL

 Appraisal offers a valuable opportunity to focus on work activities and goals, to identify and

correct existing problems, and to encourage better future performance. Thus the performance

of the whole organization is enhanced.

 Performance appraisal provides motivation through achievement, feedback and by agreeing

helpful aims and targets. Performance appraisal can have a profound effect on levels of

employee motivation and satisfaction - for better as well as for worse.

 The existence of an appraisal program indicates to an employee that the organization is

genuinely interested in their individual performance and development.

 Performance appraisal helps in improving the performance level of the employees by

identifying the training and development needs of the employee and helps in career planning
 and development. Performance appraisal can provide a regular and efficient training needs

audit for the entire organization.

 Performance appraisal helps the organization to meet the external challenge and it provides

equal employment opportunity among the employees.

 Encourages teamwork, team spirit, open communication and empowers employees to take

decisions without fear of failing.

NEGATIVE ASPECTS OF PERFORMANCE APPRAISAL

 Negative ratings, subjectivity, favoritism and politics may affect the relationship among the

employees.

 Improper feedback from the concerned employee decreases the effectiveness of the

performance appraisal system and the relationship between the superiors and subordinates

may become weak.

 The flow of information in the organization will be affected due to communication gap.

Fear, hesitation and ineffective communication can be the few causes of this gap.

 Evaluating the performance is a long term process which leads to time consumption. The

problem with subjective measure has the opportunity for bias.

THE APPRAISAL FORM

The Appraisal form is an instrument to measure and record performance details, record
training requirements, outline aspirations, record plans for career growth and record objectives for
the next assessment period.
With such a big list of things that the appraisal form aspires to be, it is not surprising that HR
managers have a difficult time in deciding what goes into the appraisal form. It is no wonder then,
that appraisal becomes a 10 page document that is often a difficult task to design, cumbersome
process to administer, long and winded for employees to write and impossible to read through
completely for all employees in a short period of time before the increments are due.
However, it is still true that the appraisal form has to capture all the above. To enable this,
there are few possible ways in which this can be managed.
 In the section measuring performance, link it clearly to the goals set and outcomes definedin
the previous appraisal.

 Any other achievement or activity that took a lot of time and effort will need to be n
i
a separate section.

 The training needs section should be specific to the KRA’s achievement for the next review
period.

 There needs to be one section where the employees write their feedback in a free-flow form.

 There needs to be one section where the supervisor gives his comments, rates the employefor
his performance and gives his recommendations.

 Though aspirations would be captured in the form and discussed during the appraisal,
h
teoutcomes of career planning can be recorded separately and written as a Personal
Development Plan (PDP). This would de-clutter the appraisal form to a larger extent.

 The form should not be cluttered with meaningless or complicated instructions. In fact, it
is wise to remember that the form is for the employees to fill and it should be as simple
and inviting to the employee as possible.

 It is more important to have a relevant form that is interesting to fill, rather than havinga
detailed form that captures ALL information that it cannot process.

LITERATURE REVIEW
1. PHILOSOPHY OF PERFORMANCE APPRAISAL PROCESS
 The articulated statement of philosophy of each organization would indicate the
organizations conception of PMS, a description of how it would be affected, and a justification of
why it has been designed that way. Philosophy statements of the system communicate its goals and
action plans and provide an opportunity to tie-in the appraisal system with that of other systems.
Some of the philosophy statements’ can be based on the following intents/premises:
 Look at phenomena of performance – do not classify the employee as good or bad based on
his performance.

 Serve as a minor for the person to see his performance.

 Help grow the person by giving him feedback about the effectiveness of his actions.

 Help the person understand where he stands wrt the organization framework and goals of the
organization.

 Support the person in finding path forward by defining a career path.

 Define the appraisal process as a constant feedback process – end year is the putting together
of the series – fine tuning.

 Link into Business.

Why organizations need to appraise their employees?

The reasons why organizations need to appraise their employees are obvious, but to reiterate:
It aligns goals of organizations with that of the employee at every level – strategy, objectives
and action plans

It helps set up an environment of openness and dialogue.

It helps understand employees, their aspirations, motivating factors and their concerns at
work or about their growth.

It helps organization design reward systems and award increments.

It provides the employee direction, perspective and a feedback of his own competence.

It serves as a barometer to the organization for its own leadership.

2. ETHICAL DILEMMAS IN PERFORMANCE APPRAISAL

Journal JOURNAL OF BUSINESS ETHICS

Publisher Springer Netherlands
ISSN 0167-4544 (Print) 1573-0697 (Online)
Issue Volume 3, Number 4/ November, 1984
DOI 10.1007/BF00381756
Pages 327-333
Subject Collection Humanities, Social Sciences and Law

Abstract:
As the interest in the quality of work life grows, it becomes increasingly apparent that
certain practices within this arena require critical scrutiny. This paper is an examination of one such
area, performance appraisal (PA). We examine some of the main conceptual issues in PA, and we
sketch some key, practical dilemmas that may arise in the use of PA. We conclude that one can
morally justify the use of PA under certain condition, and we suggest possible solutions to key
ethical dilemmas that are faced by the manager and the employee.

2. CONSTRUCTION INDUSTRY IN INDIA:

The Indian construction industry, an integral part of the economy and a conduit for a substantial part
of its development investment, is poised for growth on account of industrialization, urbanization,
economic development and people's rising expectations for improved quality of living. Construction
constitutes 40% to 50% of India's capital expenditure on projects in various sectors such as
highways, roads, railways, energy, airports, irrigation etc.

The Indian construction industry, an integral part of the economy and a conduit for a substantial part
of its development investment, is poised for growth on account of industrialization, urbanization,
economic development and people's rising expectations for improved quality of living. Construction
constitutes 40% to 50% of India's capital expenditure on projects in various sectors such as
highways, roads, railways, energy, airports, irrigation etc
Estimates indicate that annual infrastructure investments are projected to rise from US $ 17.14 bn. in
1995 - 96 to US $ 30.57 bn. to US $ 51.42 bn. in 2005 - 06 at 1995 - 96 prices.

Today, India is one of the six fastest growing economies of the world and Asia's biggest
Infrastructure Investment opportunity.

CONSTRUCTION INDUSTRY
BOOMING OPPORTUNITIES IN INDIA:

 COMMONWEALTH GAMES - 2010 IN NEW DELHI

 ROADS
 RAILWAYS
 AIRPORTS
 SPECIAL ECONOMIC ZONES ((SEZS)
 URBAN IFRASTRUCTURE - TOWNSHIP / MALLS / OFFICE BUILDINGS ETC.
 POWER
 SAGAR MALA

FDI IN CONSTRUCTION SECTOR IN INDIA

The Govt. of India has permitted FDI up to 100% for development of integrated townships
in India last year. India is now the second most favoured destination for FDI, behind China.

Beside these, there are projects coming up to develop Special Bio-Technology Parks and IT Parks.

3. COMPANY PROFILE
HISTORY

Larsen & Toubro Limited (L&T) is India's largest engineering and construction

conglomerate with additional interests in Electricals, Electronics and IT. A strong customer-focus

approach and constant quest for top-class quality have enabled L&T to attain and sustain leadership
position over 6 decades. L&T enjoys a premiere brand image in India and its international presence

is on the rise, with a global spread of over 30 offices and joint ventures with world leaders.

L&T has an international presence, with a global spread of offices. A thrust on

international business has seen overseas earnings grow significantly. It continues to grow its

overseas manufacturing footprint, with facilities in China and the Gulf region.

The company's businesses are supported by a wide marketing and distribution network,

and have established a reputation for strong customer support. It believes that progress must be

achieved in harmony with the environment. A commitment to community welfare and

environmental protection are an integral part of the corporate vision.

HISTORY:

The evolution of L&T into the country's largest engineering and construction

organization is among the more remarkable success stories in Indian industry. L&T was founded in

Bombay (Mumbai) in 1938 by two Danish engineers, Henning Holck-Larsen(4.7.1907 - 27.7.2003)

and Soren Kristian Toubro(27.02.1906 – 4.3.1982). Both of them were strongly committed to

developing India's engineering capabilities to meet the demands of industry.Beginning with the

import of machinery from Europe, L&T rapidly took on engineering and construction assignments of

increasing sophistication. Today, the company sets global engineering benchmarks in terms of scale

and complexity.

BOARD OF DIRECTORS

 Chairman & Managing Director - Mr A.M. NAIK

 Whole-time Director & President
(Machinery & Industrial Products) - Mr J.P.NAYAK
 Whole-Time Director & Chief Financial officer - Mr Y.M.DEOSTHALEE
 Whole-Time Director & President - Mr .K. VENKATARAMAN
  Whole-Time Director & President
(Electrical & Electronics) - Mr R.R.MUKHIJA
 Whole-Time Director & President
(Construction) - Mr K.V. RANGASWAMI
 Whole-Time Director & Senior Executive
Vice President(Heavy Engineering) - Mr M.V.KOTWAL

VISION

The L&T vision reflects the collective goal of the company. It was drafted through a large scale

interactive process which engaged employees at every level, worldwide.

 L&T shall be a professionally managed Indian multinational, committed to total customer

satisfaction and enhancing shareholder value.

 L&T ITES shall be an innovative, entrepreneurial and an empowered team constantly

creating value and attaining global benchmarks.

 L&T shall foster a culture of caring, trust and continuous learning while meeting

expectations of the employees, stakeholders and society.

GLOBAL PRESENCE:

L&T has a global presence. A thrust on international business over the years has

seen overseas revenues growing steadily. The company has manufacturing facilities in India, China,

Oman and Saudi Arabia.

It has a global supply network with offices in 10 locations worldwide, including

Houston, London, Milan, Shanghai, Seoul. Customers include global majors in over 30 countries.

2006

ECC's Work Culture

Work culture emphasizes :-

 Freedom to experiment

 Continuous learning and training

 Transparency

 Quality in all aspects of work

 Rewards based on performance and potential

ABOUT L&T ECC

ECC today is organized in to four Operating Companies to allow for more in-depth technology and
business development as well as to focus attention on domestic and international project execution.
Each Operating Company is further split into different Business Units (BUs) to take care of the
specific needs of various customers. The Operating Companies (OC) includes:

o Buildings & Factories Operating Company (B&F OC)

o Infrastructure (Infra OC)
o Metallurgical, Material Handling & Water (MMH &W OC)
o Electrical & Gulf Projects (E&GP OC)

ELECTRICAL & GULF PROJECTS OPERATING COMPANY (E&GP OC)

The Electrical & Gulf Projects OC (E&GP OC) offers design and construction services for all types
of industrial and project electrification works as well as for power transmission and distribution
projects in the domestic markets. It also extends comprehensive services for construction of
buildings and urban Infrastructure projects in the Gulf Markets.
In the area of power transmission & distribution, E&GP OC has established a strong presence with a
high reputation for execution of prestigious projects in the Gulf Region.
A. Electrical Projects (Domestic Business)
 Electrical, Instrumentation & Communication (EI&C) Sector
 Transmission Line & Railway Construction(TLRC) Sector
B. Gulf-Projects(International-Business)
 Power Transmission & Distribution Sector (PT&D)
 Buildings & Urban Infrastructure Sector (B&UI)

ELECTRICAL PROJECTS (DOMESTIC BUSINESS)

ELECTRICAL, INSTRUMENTATION & COMMUNICATION (EI & C) SECTOR
Electrical Instrumentation & Communication (EI&C) Sector provides turnkey & individual
package based solutions in the electrical infrastructure space. EI&C also provides comprehensive
services in the field of substations (upto 765kV), project electrification & instrumentation. Wide
experience coupled with superior project management skills ensure quality services to customer on a
Sustainable basis. Complete activities of the EI&C Sector are carried out through two business
units:
To focus on customized solutions; the sector operates as two Business units (BU) namely HV
Substation Business Unit and Industrial Electrification Business Unit.

TRANSMISSION LINES & RAILWAY CONSTRUCTION

Transmission-Lines

Turnkey construction of EHV transmission lines is a major area of operation for ECC. With ISO and
OHSAS certified tower-manufacturing facilities in Pondicherry and Pithampur, ECC’s transmission
line construction works have gone beyond Indian boundaries. Services offered include:
  Design and testing of transmission line towers up to 400kV single and multi circuits
 Manufacture of transmission line towers
 Sourcing, selection, inspection and supply of all line materials like conductors, insulators, and hardware
 Construction of lines up to 765kV including survey, foundation, erection, stringing, testing and commissioning

 Other Fields

Railway Construction

As a part of Transmission Lines and Railway Construction Sector, ECC undertakes all types of
Railway Construction works involving Design, Supply, Erection, Testing and Commissioning of
Overhead equipment & Traction Sub-station, Signaling & Telecommunication systems, Supply &
Installation of Permanent way including associated embankment formation, construction of Minor
Bridges / Culvers, Supply of Permanent Way materials, Laying of Track, etc.

Clients include Central Organization for Railway Electrification (CORE), Allahabad, RVNL,
various Construction Departments of Indian Railways / Zonal Railways / Divisional Railways,
Private Siding Owners etc.

GULF-PROJECTS (INTERNATIONAL-BUSINESS)
POWER TRANSMISSION & DISTRIBUTION SECTOR
L&T is one of the earliest Indian companies to venture in to the Gulf markets and over the years, it has gained significant market presence in the PT&D
Sector. It has played a significant role in the power evacuation, power transmission and distribution projects across the GCC countries. Having
executed some of the prestigious projects in this area, it has garnered customer goodwill across the Gulf countries. Projects are executed on EPC basis
for the HV Substation/ Transmission Line with complete In-house Design, Engineering, Procurement and Construction including Civil & MEP
services.

BUILDINGS & URBAN INFRASTRUCTURE SECTOR

Buildings & Urban Infrastructure Sector of L&T in the Gulf Region provides integrated construction
services for the construction of:

 Residential Segment

 Institutional & Commercial Segment

 Township Infrastructure Segment

  Transportation Infrastructure Segment

L&T is proud to be one among the Global leaders in the region creating Global landmarks and meeting the international quality standards of its clients
and customers.

OBJECTIVES OF THE STUDY

Primary Objective:

¥ To identify the real opinion of L&T ECC Group officers and staffs regarding the

effectiveness of the present Performance Appraisal system in their organization.

Secondary Objectives:

¥ To examine the employee level of acceptance towards various factors necessary for

appraising the employees.

¥ To identify the satisfaction level of employees towards performance appraisal system.

¥ To suggest necessary modifications in the system of approach to improve and enhance the

current appraisal system.

NEED FOR THE STUDY

Performance appraisal is the important tool to assess the performance of the employees in the

organization starting from small scale to large scale organizations. Inefficient performance appraisal

system will directly or indirectly affect the functioning of the organization’s objectives. Hence this

project was carried out to study the performance appraisal system of L&T ECC Groups to find its

effectiveness which is considered to be very vital for the success or decline of any organizations.

SCOPE OF THE STUDY

 The present study is limited to E&GP operations in L&T ECC. It can be extended to other

companies of the ECC operations.

The study on the performance appraisal system would help the company in making its

performance appraisal procedures more effective and efficient thereby making the employees more

productive.

LIMITATIONS OF THE STUDY

¶ On account of time constraints, many respondents couldn’t be reached.

¶ Respondents were not from all cadres, so the result of the research cannot be generalized to

the entire group.

¶ The research is subjected only to the study and analysis on the effectiveness of the existing

Performance Appraisal system, designing of Performance appraisal process is not dealt.

¶ The primary data was collected with the help of structured questionnaire technique.

Therefore the study is bounded by the limitation of this technique.

HR IN L&T ECC
 ECC recognizes that people are the real source of competitive advantage. It is through
people that ECC delivers total customer satisfaction. These values are reflected in our Human
Resources practices which have earned national recognition several times.

ECC-ites go through a process of continuous learning, assisted by training programs. Apart

from on-the-job training and technical training, over 100 programs on general management and
behavioral topics are conducted each year. Interactive CD-ROM based programmes have enabled
employees learn at their pace.

ECC has always believed in experimentation with and implementation of new ideas. HR
practices such as collaborative performance appraisal, career & succession planning, team rewards
have been institutionalized.

ECC Division has an ongoing organization development programs, which is one of the
longest sustaining OD efforts in India.

Awards for L&T HR Practices

 Asia Pacific HR Conclave Award for the company with “Most Innovative HR practices”

 National award for “Best HRD Practices” from Indian Society for Training and Development

 National Award for Outstanding Work in Human Resource Management from National HRD
Network

 Award for Outstanding Human Resources Development from Confederation of Engineering

Industry

 Integration of Information Technology with HR in ECC Division has been recognized by the
National HRD Network

HR Policy

The basic principles of ECC's Human Resources policies include

  Recruitment based solely on merit by following well-defined and systematic selection
procedures without discrimination
 Sustain motivated and quality work force through appropriate and fair performance
evaluation, reward and recognition systems
 Identify training needs within the Organization and design and implement those need based
training programmes resulting in continuous up gradation of knowledge, skills and attitudes
of the employees
 Maintain a quality Human Resource Management System to meet the international standards
as per ISO 9001. Plan, design, train, equip and motivate the department staff to meet this
standard of expectation.

TRAINING

ECC's Human Resources Department believes that Quality is the hallmark of any successful
venture.

Quality Training and Development of Human Resources is realized through:

Identifying training needs within the Organization and designing and implementing those need
based training programs to bring about continuous up gradation of knowledge, skills and
employee attitudes

The following brief highlights ECC's training methodology for the comprehensive development of
its 7000-odd employees.

1. Training Plan

Companies succeed in today's free market economy, only because their employees perform to their
fullest potential. Alive to this home truth, ECC draws up an annual training calendar, highlighting
the training activities for the year. Inputs to formulate this training plan are taken from the
performance review form, by interacting with ECC's Regional Offices and the higher echelons of the
management on the present and future requirements of the construction industry. It also includes
detailed discussions with the faculty.

ECC's training plan includes civil, mechanical, electrical, finance related and behavioural programs,
covering a wide cross-section of employees, as follows:

 A week long Supervisory Development Program and a 10 day Executive Development

Program are designed to provide an exposure to functional management and behavioral skills
to the site based engineers.
 Development of managerial staff is through intensive two-week long programs providing
exposure to holistic understanding of the business, Strategic Planning, Customer
Relationship, Enhancing Shareholder Value, Financial Management.
 For middle management, there is an exclusive nine-day program, designed in collaboration
with Administrative Staff College of India, Hyderabad.
 For top level management, there is an arrangement with Management Development Institute,
Gurgaon to conduct development programs at Company's Management Development Center,
Lonavla

Sustained effort in training has led to creation of highly skilled and motivated employees ready to
take on higher roles and responsibilities in the company.

2. Employee involvement in Training

Line executives and managers involve themselves as faculty for most of the Inhouse Programs.
90% of in house program are conducted by them.

As line mangers have better understanding of the nature of business and the unique problem
associates with the company/industry, they are able to design and deliver effective training sessions
keeping the company's and participant's need in mind.

It has been experienced that the concept of "Learning Organization" is getting effectively rooted in
ECC through the above process.
PERFORMANCE APPRAISAL IN L&T ECC (E&GP) OPERATIONS The process
followed in L&T for performance appraisal is “review by immediate supervisor”. There are around 36
cadres and 40 business units in E&GP OC.
CADRE & NO OF EMPLOYEES IN EACH CADRE
BUSINESS UNIT DESCRIPTION AND JOB TYPE
 HIERARCHY HR DEPARTMENT IN E&GP – OC
VICE PRESIDENT
HR
TRAINING & SYSTEMS EMPLOYEE REGIONAL
DEVELOPMENT AND CARE OPERATIONS
RECRUITMENT

OVERSEA FACTOR
TRAINING & re RECRUITMEN ries are at S Y
Regional
DEVELOPMEoffices a at T Facto DOMESTI
OPERATIO
1. Hyderabad 1. Kanchipuram C
NS
2. Kolkata 2. Pondicherry

3. Ahmadabad

4. Chennai

5. Bangalore

6. Delhi

THREE LEVELS PERFORMANCE APPRAISAL

SELF- IMMEDIATE UNIT HEAD +
APPRAISAL SUPERVISOR HR
SKELETON OF PERFORMANCE APPRAISAL PROCESS
Submission of Review by Discussion with
Self-appraisal Supervisor Supervisor+
Form Business unit Head
+ HR
APPRAISAL STAGE
STAGE 1 Review by site / project manager
Recommendation
55 SRM School of Management
STAGE 2 Review by Region head – a Moderate View G meeting is conducted
STAGE 3 Review by Business unit Head
STAGE 4 Review with the core committee
Note: Discussion and moderation are there in stages 2 to 4.

ORGANIZATIONAL HIERARCHY OF L&T ECC (E&GP) OC

L&T ECC E&GP OC

ENGINEERING & TRANSMISSION INTERNATIONAL

CONSTRUCTION LINES & OPERATIONS

OMAN QATAR
IE SUB
TL RC ABUDABI
Regions Regions
1…7 1…7 Region
Region s 1…7
Regions s 1…7
Sites Sites 1…7
Region Sites
1…n 1…n s 1…7 1…n
Sites Sites
1…n 1…n
Sites
1...n

IE - Industrial Electrification
SUB - Substations
TL - Transmission Lines
RC - Railway Construction

APPRAISAL PROCESS IN E&GP – OC

SELF Attributes  Professional competence & Qualification
APPRAISAL
IMMEDIATE  Customer Relations
SUPERIOR
 Planning & Timely completion
PROJECT
MANAGER
REGIONAL PM  Innovation & Creativity
/ SECTOR PM
 Leadership
56 & Initiative SRM School of Management
 Communication

 Safety
 BUSINESS
UNIT HEAD
CORE
COMMITTE
E

4. RESEARCH METHODOLOGY

Research Methodology is a way to systematically solve the research problem. It may be

understood as a science of studying how research is done scientifically. It contains the study of the

various steps that are generally adopted by a researcher in studying his research problem along with

logic behind them.

RESEARCH DESIGN:
 A research design is purely and simply the framework or plan of a study that guides the

collection and analysis of data. Generally a research design is a blue print of the research that is to be

followed in completing the study.

Research design type: Descriptive Research – It is the research design that describes the

characteristics of any individual or relevant groups.

SAMPLING DESIGN:

Population: One Operating Company – E&GP in L&T ECC Ltd.

Sampling Unit: Individual Employees in the organization.

Sample Size: Sample size was restricted to 50 respondents.

Sampling Method: Stratified proportionate random sampling.

Nature Of Data: Primary data as well as secondary data

Method Of Data Collection: Primary data was collected by the Questionnaire survey, Interview with

the personnel of the company. Secondary data was collected with the help of the company records,

annual reports, magazines, company websites etc.

TOOLS USED FOR ANALYSIS:

The analysis is done using SPSS Inc Statistical Package.

The tools for the statistical analysis consisted of:

 Cross Tabulation: Cross tabulation results in tables that reflect the joint distribution of

two or more variables with a limited number of categories or distinct values. It is a merging

of the frequency distribution of two or more variables in a single table.

  Mean: The mean or average value is the most commonly used measure of central tendency.

It is used to estimate the mean when data have been collected using an interval or ratio scale.

The data should display some central tendency, with most of the responses distributed around

the mean.

 Percentage Analysis: The percentage analysis is to obtain the number of responses or a

relative occurrence associated with the different values of the variable and is expressed in

percentages.

5. ANALYSIS AND INTERPRETATION

5.1 CROSS TABULATIONS:

Table 1 showing the cross tabulated values between the Designation & the level of

satisfaction towards the present PAS.

 Cadre * Satisfaction to present PAS Crosstabulation

Count
Satisfaction to present PAS
Neither
Highly Satisfied nor
Satisfied Satisfied Dissatisfied Dissatisfied Total
Cadre Manager 4 12 2 1 19
Officer 3 1 1 1 15
Secretary 11 0 4 3 16
8

Total 8 30 7 5 50

TABLE 1

Bar chart 1

Cadre * Satisfaction

12
10
8
6 Manager
4
2 Officer
0 Secretary
Highly Satisfied Neither Dissatisfied
satisfied

INFERENCE:

Among the Managers about 63.15% of them are satisfied, 21% of them are highly satisfied,

5.3% of them are dissatisfied with the current performance appraisal system. Among the Officer

66.7% of them are satisfied, 20% of them are highly satisfied and 6.7% of them are dissatisfied with
the current PAS. Among the Secretary level employees 50% of them are satisfied, 6.25% are highly

satisfied and 18.7% are dissatisfied with the current PAS.

Thus with regard to the satisfaction towards the current Performance appraisal system,

majority of the respondents (i.e) about 60% of them are satisfied, 16% of them are highly satisfied,

14% of them are neither satisfied nor dissatisfied, 10% of them are dissatisfied.

Table 2 showing the cross tabulated values between the Experience & the level of

Satisfaction towards the present PAS.

Experience * Satisfaction to present PAS Crosstabulation

Count

Satisfaction to present PAS

Neither
Highly satisfied nor
Satisfied Satisfied dissatisfied Dissatisfied Total
Experience Less than 3 years 2 9 1 12
6 - 10 years 8 1 9
11 years and above 6 13 6 4 29
Total 8 30 7 5 50

TABLE 2

Bar chart 2
 Experience * Satisfaction

14
12
10
8 Less than 3 years

6 6-10 years

4 11 years and above

2
0
highly satisfied satisfied neither dissatisfied

INFERENCE:

Among the respondents whose experience is less than 3 years, about 16.7 % of them are

highly satisfied, 75% of them are satisfied, 8.3% of them are dissatisfied with the current appraisal

system. Among the respondents whose experience is 6 – 10 years, about 88.9 % of them are satisfied

and 11.1 % of them are neither satisfied nor dissatisfied with the current system. Among the

respondents whose experience is above 11 years, 20.7% of them are highly satisfied, 44.8% of them

are satisfied and 13.8% of them are dissatisfied and 20.7% of them are neither satisfied nor

dissatisfied with the current performance appraisal system.

This implies that majority of the respondents who are satisfied with the current Performance

appraisal systems are with the experience of 11 years and above.

Table 3 showing the cross tabulated values between the Cadres & whether

developmental needs are met in the present PAS.

 Cadre * Develop mental needs are expressible Crosstabulation

Count
Developmental needs are expressible
Strongly Neither agree
agree Agree nor disagree Disagree Total
Cadre Manager 5 9 4 3 21
Officer 3 12 2 2 19
Secretary 3 7 10

Total 11 28 6 5 50

TABLE 3
Bar chart 3
Cadre * Development needs

12
10
8
6 Manager
4 Officer
2 Secretary
0
Strongly Agree Neither Disagree
agree

INFERENCE:

About 23.9% of the Managers,15.8 % of the Officers, 30% of Secretaries, strongly agree that

their developmental needs are expressible in the current performance appraisal system. About 42.8

% of the Managers, 63.15% of the Officers , 70% of the Secretaries just agree that their

developmental needs are expressible in the current performance appraisal system. 14.3% of the

Managers, 10.5% of the Officers are in the opinion that their developmental needs are not

expressible in the current PAS.

 With regard to the criteria that, whether the developmental needs of the respondents are

expressible in the performance appraisal system, about 22% of them strongly agree,56% of them

agree, 12% of them neither agree nor disagree, and 10% of them disagree. This implies that

approximately one half of the respondents agree that their developmental needs are expressible.

Table 4 showing the cross tabulated values between the Cadres & Whether the current

PAS provides a frank discussion between the appraiser and the appraise.

Cadre * Frank Discussion Crosstabulation

Count
Frank Discussion
Strongly Neither agree
agree Agree nor disagree Disagree Total
Cadre Manager 4 9 2 2 17
Officer 4 10 1 15
Secretary 6 9 3 18

Total 14 28 6 2 50

TABLE 4

Bar chart 4
 Cadre * Frank discussion

10
8
6 Manager
4 Officer
2 Secretary
0
Strongly Agree Neither Disagree
agree

INFERENCE:

About 23.5% of the Managers, 26.7% of the Officers ,33.3% of the Secretaries strongly agree

that a frank discussion exits during the current performance appraisal system. About 53% of the

Managers, 66.7% of the Officers, 50% of the Secretaries, agree that a frank discussion exits. About

11.8% of the Managers totally disagree to this context.

This implies that although large percentage of the respondents agrees that a frank discussion

is carried out between the appraiser and the appraise during the current performance appraisal

system, majority of the Officers disagree. They expect a better exchange of views during the

appraisal process.

Table 5 showing the cross tabulated values between the Cadres & by whom the

appraisal process should be done.

 Cadre * Appraiser Crosstabulation

Count
Appraiser
Immediate Head Of the
Superior Department All the above Total
Cadre Manager 7 6 6 19
Officer 5 3 12 20
Secretary 5 6 11

Total 17 9 24 50

TABLE 5

Bar chart 5

Cadre * Appraiser INFERENC

12
E:
10
8
6 Manager
4 About 37%
Officer
2
Secret ary of the
0
Immediate HOD All above Managers,25
superior
% of the

Officers, 45.5% of the Secretaries, prefer their immediate superiors to be their appraiser. 31.5% of

the Managers, 15% of the Officers, prefer their HOD’s to be their appraiser. 31.5% of the Managers,

60% of the Engineer , 54.5% of the Senior Officers, prefer that appraisal is done by all(Immediate

superior, HOD, Project manager, Team Leader).

This implies that about 48% of the respondents,(i.e) approximately one half of the them

prefer that the appraisal process is carried out by all to whom they are accountable. Also 34% of

them prefer their Immediate superiors to appraise them.

Table 6 showing the cross tabulated values of Experience & Whether job rotation is

practiced to identify the employee’s potential in new areas.

TABLE 6

Bar Chart 6

Experience * job rotation

25
20
15 Less than 3 years

10 6 - 10 years

5 11 years and above

0
Yes No

INFERENCE:

Considering the job rotation factor, about 66.7% of the respondents with an experience of 6

– 10 years, and 17.2 % of the respondents with an experience of 11 years and above are of opinion

that there potentials in new areas are identified. But 100% of the respondents with an experience of
less than 3 years, 33.3% of the respondents with an experience of 6 – 10 years, and 82.8% of the

respondents with an experience of 11 years and above feel that job rotation is not practiced to

identify their potentials in new areas.

This implies that majority of the respondents with the experience of 6 – 10 years are given

the opportunity to bring out their knowledge, skills, and ability through job rotation, while majority

of the respondents with an experience of less than 3 years, and greater than 11 years are not provided

with the job rotation facilities.

Table 7 showing the cross tabulated values of Cadres & Percentage of biasing in the

current performance appraisal process.

Cadre * Percentage of biasing Crosstabulation

Count
Percentage of biasing
0% 1 % - 50 % 51 % - 99 % Total
Cadre Manager 12 4 16
Officer 4 11 1 16
Secretary 4 8 6 18

Total 8 31 11 50

TABLE 7

Bar chart 7
 Cadre * Percentage of Biasing

12
10
8 Manager
6 Officer
4
Secretary
2
0
0% 1% - 50% 51% - 99%

INFERENCE:

About 25% of the Officers, 22.3% of the Secretaries are of opinion that there is no biasing in

the current performance appraisal system. While 75% of the Managers, 68.7% of the Officers,

44.5% of the Secretaries, feel that there are traces of biasing(< 50% ). And about 25% of the

Managers, 6.25% of the Officers, 33.4% of the Secretaries feel biasing is obvious (> 50%) in the

current performance appraisal system.

This implies that majority of the Managers feel there is nil biasing, while majority of officers

are of opinion that some degree of biasing is prevalent, and majority of the Secretaries strongly agree

that favoritism is obvious in the current performance appraisal system.

DESCRIPTIVES - MEAN
Table 8 showing the descriptive statistics of the factors that are necessary for

appraising the employees.

Descriptive Statistics

N Minimum Maximum Mean Std. Deviation

Qualification 50 1.00 3.00 1.2200 .50669
Initiative 50 1.00 3.00 1.4200 .60911
Quality of work 50 1.00 2.00 1.0600 .23990
Plan of Work 50 1.00 3.00 1.3600 .52528
Innovation 50 1.00 3.00 1.6600 .62629
Relation with Customers
50 1.00 3.00 1.7800 .70826
& subordinates
Speed 50 1.00 3.00 1.7400 .66425
Leadership Qualities 50 1.00 3.00 1.6400 .66271
Communication 50 1.00 3.00 1.5800 .73095
Valid N (listwise) 50

TABLE 8
From the Mean values exhibited in the above table, we can infer that the respondents are in

the opinion that the above criteria are necessary for appraising the employees. The order of their

preference is as given below:

1 Quality of work 94%

Bar chart 8
2 Qualification 82% Order of Preference
3 Plan of the work 66%
Quality of work
4 Initiative 64% Qualification

Plan of work
5 Communication 56%
Initiative
6 Leadership Qualities 46% Communication

7 Innovation 42% Leadership

Innovation
8 Speed 38%
Speed

9 Customer relations 38% Customer Relations

PERCENTAGE ANALYSIS:
Frequency Table
Table 9 showing the percentage of response for the Description of the present job:

TABLE 9
Bar chart 9 representing the percentage of responses for the Description of the

present job:

Description of the present job

50

40

30

20

10
Percent

0
Challenging Interesting Normal

Description of th
e present job

INFERENCE:
 With regard to the description of the present job 48% of the respondents feel their job nature

is interesting, 34% of them feel it is normal, and 18% of them feel it is challenging. Majority of the

respondents feel that their job is quite interesting.

Table 10 showing the percentage of response for the self-description of the

performance level in the company:

TABLE 10
Bar chart 10 representing the percentage of responses for the self-description of the
performance level in the company:

Performanc
e level
70

60

50

40

30

20
Perc ent

10

0
Good Fair Needs Improvement

Performance level
INFERENCE:

About 66% of the respondents feel that their level of performance is good,12% of them feel it

is fair, and 22% of them feel they need some improvement. This implies that few of the respondents

wish to render even better performance than what they give-in presently.

Table 11 showing the percentage of response for the level of satisfaction to the
present Performance appraisal system:

TABLE 11
Bar chart 11 representing the percentage of responses for the level of satisfaction to
the present Performance appraisal system:

Satisfaction to present PAS

70

60

50

40

30

Perc2e0 nt
10
0
Highly Satisfied Neither satisfied no
Satisfied Dissatisfied

Satisfaction to present PAS

BAR CHART 11
INFERENCE:

With regard to the level of satisfaction to the present appraisal system, 16% of the

respondents are highly satisfied, 60% of them are satisfied, 14% of them are neutral, and 10% of

them are dissatisfied. This implies that majority of the respondents are satisfied with the current

PAS.

Table 12 showing the percentage of response for the additional job satisfaction, which
the current appraisal system provides:

TABLE 12

Bar chart 12 representing the percentage of responses for the additional job

satisfaction, which the current appraisal system provides :

Job Satisfaction
120

100

80

60

40

20
Percent
0
Yes No

Job Satisfaction
INFERENCE:

Above table shows that majority of the respondents (i.e) about 96% of them get some degree

of additional job satisfaction from the current appraisal system. Only 4% of them disagree to this

fact. From this we can infer that the current appraisal system is effective in providing the additional

job satisfaction to the employees.

Table 13 showing the percentage of response for the fact that the current appraisal

system facilitates self development:

TABLE 13

Bar chart 13 representing the percentage of response for the fact that the current

appraisal system facilitates self development:

 Self Development
100

80

60

40

20
Percent

0
Yes No

Self Development

INFERENCE:

With regard to the self development, about 86% of the respondents agree that the current

appraisal system assists in their development. Only 14% of them disagree to this fact. This shows

that the current appraisal system is appreciably effective and facilitates the self development.

Table 14 showing the percentage of response for the organizational initiatives taken to

improve the low performance level of the employees.

Performance level Improvement

70

60
TABLE 14
50
Bar chart 14 representing the
40
percentage of response for the
30

20 organizational initiatives taken to

Percent

10
0 76 SRM School of Management
By advice By Rules & Regulatio
By Training

Performance level Improvement

improve the low performance level of the employees.

INFERENCE:

To improve the low performance of the employees, the organization provides various

training programs which the majority of the respondents(i.e) 64% have opted. About 28% of them

feel that the organization gives counseling or some advices to improve the performance level. And

8% of them feel that necessary rules and regulations are framed to help the employees develop their

performance level.

Table 15 showing the percentage of response from the respondents whether job

rotation is practiced to identify their potential in new areas.

TABLE 15
Bar chart 15 representing the percentage of response from the respondents whether

job rotation is practiced to identify their potential in new areas.

 Job Rotation
100

80

60

40

20
Percent

0
Yes No

Job Rotation
INFERENCE:

About 78% of the respondents are of opinion that job rotation is not practiced. Only 22% of

them agree that job rotation is practiced to identify their potentials in new areas. This implies that

majority of the respondents are devoid of job rotation practices, thereby they are unable to bring out

their versatile potentials.

Table 16 showing the percentage of response for the level of biasing in the current

appraisal system.

TABLE 16
Bar chart 16 representing the percentage of response for the level of biasing in the

current appraisal system.

 Percentage of biasing
70

60

50

40

30

20
Percent

10

0
0% 1 % - 50 % 51 % - 99 %

Percentage of biasing

INFERENCE:

With regard to the biasing factor, about 62% of the respondents feel that certain degree of

biasing(< 50%) is prevalent in the current appraisal system, while 22% of them feel that there is high

level of biasing( > 50%), and 16% of them feel that there is no biasing in the current appraisal

system. From this we can infer that majority of the respondents agree that favoritism or subjectivity

exits in the current appraisal system.

Table 17 showing the percentage of response for the effect of negative feed

Back
TABLE 17

Bar chart 17 representing the percentage of response for the effect of negative
Feedback:
 Effect of Negative feed back
70

60

50

40

30

20
Perc10ent
0
Frustration Helps to correct you
Triggers to work hard

Effect of Negative feed back

INFERENCE:

About 62% of the respondents feel that the negative feedback helps to correct themselves,

34% of them feel that negative feedback triggers them to work even more efficiently, while 4% of

them feel it leads to frustration. This implies that on the whole the respondents view the negative

feedback with a posit ve outlook, and they consider them as an opportunity to improve and develop.

Table 18 showing the percentage of response for choosing the appraiser:

TABLE 18
Bar chart 18 representing the percentage of response for choosing the

appraiser:
 Appraiser
50

40

30

20
Percent

10

0
Immediate Superior All the above
Head Of the Departme

Appraiser

INFERENCE:

About 14% of the respondents prefer that the appraisal process is carried out by their Head

Of the Department, while 34% of them prefer their immediate superiors to be their appraisers. And

48% of them prefer that the appraisal process is carried out by all including the HOD, Immediate

superior, peers etc. This implies that majority of the respondents are interested to have many

appraisers than confining to a single person.

Table 19 showing the percentage of response for the level of satisfaction towards the

HRD’s Training and Development activities:

TABLE 19
Bar chart 19 representing the percentage of response for the level of satisfaction

towards the HRD’s Training and Development activities:

HRD's T&D Activities

70

60

50

40

30

20
Percent

10

0
Highly Satisfied Neither satisfied no
Satisfied Dissatisfied

HRD's T&D Activities

INFERENCE:

Considering the Human Resource Department’s Training & Development activities, about

66% of the respondents are satisfied, 16% of them are highly satisfied, while 10% of them are

neutral and 8% of them are dissatisfied. This implies that majority of the respondents feel the HRD

is doing well regarding the Training & Development activities.

Table 20 showing the percentage of response for the significance of the current

performance appraisal system:

 TABLE 20

Bar chart 20 representing the percentage of response for the significance of the
current performance appraisal system:

Significance of PAS
40

30

20

10
Percent
0
Promotion Identification of Training needs
Identification of All the above
Employee potential
Significance of PAS
INFERENCE:

About 34% of the respondents feel that the current appraisal system is carried out to identify

the employee’s potential, 32% of them feel that it is to identify the training needs, 12% of them feel

that it is to provide promotions, and 22% of them feel that it is to serve all the above purposes.
 6. FINDINGS AND INFERENCES
 The current appraisal system is effective to a high degree, and majority of the employees are

satisfied with the appraisal system.

 Identification of training and development needs through appraisal process is found to be

good.

 HR department’s activities towards the performance enhancement of the employees are

appreciably great.

 During the appraisal process a frank discussion is carried out between the appraiser and the

apraisee.

 Majority of the employees prefer the appraisal system to be carried out by the group

consisting of immediate superiors, HOD/Manager, peers etc.

 Almost all the respondents prefer the criteria like Quality of work, qualification and plan of

work etc are found to be effective in the appraisal system process to evaluate their

performance.

 The company takes initiative to improve the low performance of the employees mainly

through training programs.

 Job rotation is not emphasized well in the current performance appraisal process.

 Majority of the employees insist to adapt 360 degree appraisal system.

 The current performance appraisal system does not provide scope for communicating overall
business goals.

 No periodic orientation of programs on performance appraisal is conducted.

 7. RECOMMENDATIONS AND SUGGESTIONS

» Individual Performance objectives can be set during the beginning of every year.

» There can be a monthly review of individual/team objectives.

» Online Appraisal system can be adapted to make the process faster and more effective.

» Appraisal process can be carried out by obtaining the performance feedback of the
employees from all including immediate superiors, HOD and peers.

» Performance Appraisal system should be made more transparent.

» The company can gradually adapt to 360 degree feedback for the appraisal process to be
even more effective.

» Constant attention, continuous effort to take corrective measures can be emphasized in the
appraisal system.

» HRM/HRD/personnel department can consider the results of Performance Appraisal System

for career planning and development of the employees.

» Orientation programs can be organized before conducting Performance Appraisal System.

» Time limit can be scheduled for each and every step involved in the performance appraisal
process.

» There should be a performance feedback session, so that the employees can be more effective
in their future work.

» Superiors can be even more unbiased, employees can work thoroughly on self appraisal and
these can be continued in future for the continuous improvement of the organization.
 8. CONCLUSION

A Larsen and Tubro group company is well diversified at many locations. They are

succeeding from their existence because of the efforts and contribution of the management and the

employees towards the organization.

ECC strongly believes that to be in business, up gradation of employees' knowledge and

skills are essential. Hence investment in Human Resources is one of the top priorities of the
Management.

From this study it is concluded that the effectiveness of the current performance Appraisal

system in the organization is high. The organization feels that appraisal system is a motivating tool

to the employees and follows it in order to get the maximum output from the employees. Though

there is a very small amount of dissatisfaction shown towards the appraisal system, it can be

completely eradicated by making some innovative modifications.

All these efforts and hard work of the management as well as each an every employee is the

secret behind the success of the enterprise.

 A STUDY ON PERFORMANCE APPRAISAL SYSTEM OF L&T ECC
E&GP.
QUESTIONNAIRE
Dear Respondents,
Your sincere feedback through this questionnaire will be beneficial to improve the
Performance Appraisal System at L&T ECC. And your kind Cooperation will help me
complete my project in time.

I – GENERAL INFORMATION
1. Name (optional):

2. Gender : a) Male [ ] b) Female [ ]

3. Age : a) Below 25 years [ ] b) 26 – 35 years [ ] c) 36 -45 years [ ]

d) 46 – 55 years [ ] e) Above 55 years [ ]

4. Cadre: a) Managerial level [ ] b) Officer level [

] c) Secretary level [ ] 5. Designation: -----------------------------------

6. Experience : a) Less than 3 years [ ] b) 3- 5 years [ ]

c) 6 – 10 years [ ] d) 11 years and above [ ]
II – STUDY RELATED INFORMATION

1. How do you describe your present job?

a) Challenging [ ] b) Interesting [ ] c) Normal [ ]

2. Describe your performance level in your company:

a) Good [ ] b) Fair [ ] c) Needs improvement [ ]

3. a) Are you satisfied with the present appraisal system followed in your organization?
a) Highly Satisfied [ ] b) Satisfied [ ] c) Neither satisfied nor dissatisfied [ ]
d) Dissatisfied [ ] e) Highly Dissatisfied [ ]

b) Give Reason

4. a) What in your opinion should be the time period of conducting continuous Appraisal?

a) Quarterly [ ] b) Half Yearly [ ] c) Yearly [ ]

b) Any specific reason

5. a) Does the performance appraisal gives an additional job satisfaction to you?

a) Yes [ ]
b) No [ ]
b) If yes, at what level it gives an additional job satisfaction:-
a) Very high level [ ] b) High level [ ] c) Moderate [ ]
d) Low level [ ] e) Very low level [ ]
6. a) Does the performance appraisal system facilitate to increase your self development?
a) Yes [ ]
b) No [ ]
b) If yes, at what level the performance system is helpful for your self-development?
a) Very high level [ ] b) High level [ ] c) Moderate level [ ]
d) Low level [ ] e) Very Low level [ ]
7. a) What is your opinion on being rated in the following attributes for your performance
appraisal?

Attribut Strong Agree Disagre Strongl

Neither
es e
ly y
Agree Disagr
ee

a. Professional competence & [ ] [ ] [ ] [ ] [ ]

Qualification
b. Customer relations [ ] [ ] [ ] [ ] [ ]

c. Planning monitoring [ ] [ ] [ ] [ ] [ ]
timely
completion
d. Innovation & Creativity [ ] [ ] [ ] [ ] [ ]

e. Leadership [ ] [ ] [ ] [ ] [ ]

f. Initiative [ ] [ ] [ ] [ ] [ ]

g. Communication [ ] [ ] [ ] [ ] [ ]

h. Speed [ ] [ ] [ ] [ ] [ ]

i. Quality of work [ ] [ ] [ ] [ ] [ ]
b) What other Attributes do you think are necessary for evaluating Performance appraisal?
8.” Current Appraisal system provides a frank discussion between you and the appraiser”
a) Strongly Agree [ ] b) Agree [ ] c) Neither Agree nor Disagree [ ]
d) Disagree [ ] e) Strongly Disagree [ ]

9.” Current Appraisal system allows you to express your developmental needs”
a) Strongly Agree [ ] b) Agree [ ] c)
Neither Agree nor Disagree [ ]
d) Disagree [ ] e) Strongly Disagree [ ]

10.At low performance level, how does your organization improve

the performance level of the employee?

a) By advice [ ] b) By training [ ]
c) By de-promotion [ ] d) by rules & regulations [ ]
11.Is Job Rotation practiced in order to identify your potential in new areas of the job?
a) Yes [ ] b) No [ ]

12.What percentage of biasing is there in the current performance

appraisal system? a) 0% [ ] b) 1% - 50% [ ] c) 51% - 99%
[ ] d) 100% [ ]

a. What is the effect of Negative feedback on your performance?

a) Frustration [ ] b) Triggers to work hard [ ] c) Helps you to correct yourself [ ]
b) If any other, Specify

14.Appraisal should be done by;

a) Immediate Superior[ ] b)Team Leader[ ]
c) Project manager [ ] d) Head of the Department [ ]
e) All the above [ ]
15.According to you, Performance Appraisal in your organization is for;
a) Promotion [ ] b) Identification of the employee’s potential [ ]
c) Transfer [ ] d) Identification of Training needs [ ]
e) All the above [ ]

16.What would be your key objectives for the next 6 months?

a.
b.
c.

17. Explain the Agenda (your plan) for meeting your

desired objectives.

18. Training and Development activities

by HRD is
a) Highly b) Satisfied [ c) Neither satisfied nor
satisfied [ ] ] dissatisfied [ ]
e) Highly
d) Dissatisfied [ ] Dissatisfied [ ]

19. What is your opinion, if the organization adapts 360

degree appraisal?

20. Give your suggestions to improve the performance appraisal system your
of
organization.
THANK YOU!!!