CONTENTS

-DECLARATION -ACKNOWLEDGEMENT -EXECUTIVE SUMMARY

1. DESIGN OF STUDY

Introduction of the study Objectives Scope of the study Research Methodology Limitation of the study Statement of Problem

2. COMPANY PROFILE OF I.O.C.L.

3. THEROTICAL ASPECTS Introduction of Performance appraisal

Objective of Performance appraisal Methods Performance appraisal Prerequisites for effective and successful Performance appraisal Purpose of Performance appraisal I.O.C.L.S appraisal
4. INTERPRETATION AND ANALYSIS OF DATA

5. FINDING SUGGESTION CONCLUSION QUESTIONAIRE BIBLIOGRAPHY

INTRODUCTION OF THE STUDY The performance appraisal has taken very important role in Human Resource management. It also known as Administrative tool The concept of performance appraisal becomes enviable and approach to performance will also be changing. There is a saying that performance appraisal only an activity to achieve short term objectives. Some also feel that it focuses on the team some others fell that it will be useful only in extreme cases where employees are either highly effective or ineffective. The opinion is also that it is purely subjective and at times it out puts down the morale of the employees. All these opinions and feelings are not true. In reality performance appraisal is an effective tool in hands of the executives to improve the quality of work in the organization employees will be fixed on the basis of performance. And some times lay offing also done for the employees poor performance. This is common practice in every organization. Seeing this, entire performance appraisal take very important role in Human Resource Management. Know a day performance appraisal used as H.R. Development technique. So I am very much interested to study about performance appraisal. To understand what is performance appraisal? P.A. Methods? How P.A. conduct uses of P.A. objectives of P.A? What they do offer P.A and to understand who is rate who are rater?

OBJECTIVES OF THE STUDY To study the various methods of performance appraisal applied in I.O.C.L.
1.

To identify the needs of Performance appraisal system in I.O.C.L.

2.

3. To know the opinion of employees satisfied by the performance appraisal system. To study the effect on employees of performance appraisal in I.O.C.L.
4.

SCOPE OF THE STUDY The scope of the study is that it will help the researcher to know that what constitutes performance appraisal and also the role played by it in rating the employees and on the effect of it on the employees. It also helps us in knowing about who the raters are and what role do they play in Performance Appraisal. On other said the study reveals that the employees are satisfied by it or they want some other ways of promoting them.

LIMITATION OF THE STUDY

As the sample is taken on a random basis and is only a representative pertaining of the whole it is not possible to attain perfect accuracy. There was some time constraint which relatively hampered speeding of the work. Employee failed to respond truthfully. Their answers may not be accurate. There is a time consist to complete questioner and lacking in communicate with employees in their busy schedule.

METHODS OF APPRAISALS

Past Oriented

Future Oriented

Rating Scales

MBO

Checklists

360Appraisal

ForcedChoiceMethod

Psychological appraisal

Critical Incident Method

Assessment Centers

Behaviorally Anchored Method

Field Review Method

Performance Test and Observations

Annual Confidential Reports

Essay Method

Cost Accounting Approach

Comparative Evaluation Approach

PAST ORIENTED METHODS

1.

Rating scales:

This is the simplest and most popular technique for appraising employee performance. such as The typical rating-scale system consists of several conumerical scales, each representing a job related performance criteria dependability, initiative, output, attendance, attitude, operation, etc. Each scale ranges from excel linked to salary increase, whereby so many points equal a rise often to poor. The appraiser checks the appropriate performance level on each criterion, and then computes the employees total numerical score. The number of points scored may be linked to salary increase, whereby so many points equal a rise of percentage.

Excellent 5 Dependability Initiative Overall output Attendance Attitude Co-operation Quality of work Total Total score -

Good 4 -

Acceptable 3 -

Fair 2 -

Poor 1 -

Rating scales offer the advantages of adaptability, relatively easy use and low cost. Nearly every type of job can be evaluated with the rating scale, the only requirement being that the job performance criteria should be changed. This way, a large number of employees can be evaluated in a short time, and the rater does not need any training to use the scale. The disadvantages of this method are several. The raters biases are likely to influence evaluation and the baises are pronounced in subjective criteria such as co-operation, attitude and initiative. Moreover, numerical scoring gives an illusion of precision that is really unfounded. Instruction : For the following performances factors please indicate on the rating Scale your evaluation of the employee named below.

Employees Name: Raters Name:

Department : Date:

2. Checklist:
In this method, a checklist of statements on the traits of the employee and his or her job is prepared in two columns viz. a Yes column and a No column. All that the rater (immediate superior) should do is tick the Yes if the answer to the statement is positive and in the column No if the answer is negative. After ticking off against each item, the rater forwards the list to the HR department where the actual assessment of the employee takes place and the actual evaluation is done by the HR department. The HR department assigns certain points to each Yes ticked. Depending on the number of Yes the

total score is arrived at. When points are allotted to the checklist it becomes weighted checklist. The advantages of this method are economy, ease of administration, limited training of rater, and the standardization. The disadvantages include, susceptibility to raters baises, use of personality criteria instead of performance criteria, misinterpretation of checklist items, and the use of improper weights by the HR department, it also does not allow the rater to give up relative ratings.

Yes 1. Is the employee really interested in the job? 2. Does he/ she possess adequate knowledge about the job? 3. Is his/her attendance satisfactory? 4. Does he/she maintain the equipment in a good condition? 5. Does he/she co-operate with co-workers? 6. Does he/she observe safety precautions? 7. Does he/she complete what he/she -

No -

commences? 8. Does he/she evade the responsibility? -

3.

Forced Choice Method:

In this the rater is given a series of statements about an employee. These statements are arranged in blocks of two or more, and the rater indicates which statement is most or least descriptive of the employee. Typical statements are: 1) Learns fast..Works hard. 2) Work is reliable..Performance is a good example for.

3) Absents often..Others usually tardy. The rater is simply expected to select statements, which are readymade. The advantage of this method is the absence of personal bias in rating. The disadvantage is that the statements may not be properly framed- they may not be precisely descriptive of the ratees traits.

4.

Forced Distribution Method

One of the errors in rating is leniency-clustering a large number of employees around a high point on rating scale. The forced distribution method seeks to overcome the problem by compelling the rater to distribute the ratees on all points on the rating scale. The method operates under assumption that the employees performance level conforms to a normal statistical distribution. Generally, it is assumed that employee performance level conforms to a bell shaped curve. The major weakness of the forced distribution method lies in the assumption that employee performance level always conform to a normal (or some other) distribution. In organizations that have done good job of selecting and retaining only the good performers, the use of forced distribution approach would be unrealistic as well as possibly destructive to the employee morale.

5.

Critical Incidents Method:

The critical incidents method of employee assessment approach focuses on certain critical behaviors of an employee that make all the difference between effective and non-effective performance of a job. Such incidents are recorded by the superiors as and when they occur. One of the advantages of the critical incidents method is that the evaluation is based on actual job-behavior. Giving job-related feedback to the employee is also easy. However, the following drawbacks are there: Negative incidents are generally more noticeable than the positive ones. The recording of incidents is a chore to the supervisor and may be put off and easily forgotten. Overly close supervision may result.

6.

Behaviorally Anchored Scale:

In this approach, broad categories of practice are identified, ideally through collaborations between supervisors and staff. Specific job behaviors are then linked to the categories. Measures of staff member behavior are rated on a scale in relation to specific behavior items, such as understands department functions. Job dimensions usually yield similar broad categories, such as planning, setting priorities, and responsiveness to supervision. Categories such as these may be useful in framing evaluation criteria in this approach to appraisal. Another means of approaching behavior- based appraisal is the behavioral frequency scale. Here, desired behaviors are described and the staff member is evaluated on how often those behaviors occur.

7.

Field Review Method:

This

is

an

appraisal The

by

someone reviews

outside employee

the

assessees and

own holds

department, usually by someone from the corporate office or the HR department. outsider records interviews with the ratee and his/ her superior. The method is used primarily for making promotional decisions at the managerial level. Field reviews are also useful when comparable information is needed from employees in different units or locations. The disadvantages of this method are: 1. An outsider is usually not familiar with the conditions in an employees work environment that may affect the employees ability or motivation to perform. 2. An outsider review does not have the opportunity to observe employee behavior of performance over a period of time and in a variety of situation but only in an artificially structured interview situation which extends over a very short period of time.

8.

Performance Tests and Observations:

With a limited number of jobs, employee assessment may be based upon a test of knowledge or skills. The test must be reliable and validated to be useful. Even then, performance tests are apt to measure potential more than actual performance. In order to test to be job related, observations should be made under circumstances likely to be encountered. Practically it may suffer from the costs of test development or cost of administration.

9.

Essay Method:

In the essay method, the rater must describe the employee within a number of broad categories, such as:

i. ii. iii. iv. v.

The

raters

overall

impression

of

the

employees

performance. The promotability of the employee. The jobs that employee is now able or qualified to perform. The strengths and weakness of the employee. The training and assistance required by the employee.

This method is useful in filing the information gaps about the employees that often occur in the better-structured checklist method. However, the major drawback can be that many raters do not have good writing skills. They become confused about what to say, how much they should state and the depth of narration. Another problem with this method is that the ratees may be rated on the quality of the appraisal that they give. The quality standard for the appraisal may be influenced by appearance rather than content. Thus, a high quality appraisal may provide little useful information about the performance of the ratee.

10.

Cost Accounting Method:

This method evaluates performance from the monetary returns the employee yields to his/ her organization. A relationship is established between the cost included in keeping the employee and the benefit the organization derives from him or her. Performance of the employee is then evaluated based on the established relationship between the cost and the benefit.

11.

Comparative Evaluation Approaches:

There are two methods that are used to compare one workers performance to that of his or her co-worker.

11.1

Ranking Method:

In this, the superior ranks his or her subordinates in the order of their merit, starting from the best to the worst. All that the HR department knows is that A is better than B. The how and why are not questioned. No attempt is made to fractionalize what is being appraised into component elements. To avoid the biases, two or more people can do rankings and then average can be taken. Its advantages include ease of administration and explanation.

11.2

Paired-Comparison Method:

Under this method, the appraiser compares each employee with every other employee, one at a time. For example, there are five employees named A,B,C,D and E. The performance of A is first compared to B and a decision is made about whose performance is better. Then A is compared with C,D,E in that order. The same procedure is repeated for other employees. The number of comparisons may be calculated with the help of a formula: N(N-1)/2, where N stands for the number of employees to be compared. If there are 10 employees, the number of comparisons will be 10(10-1)/2=45. After the completion of the comparison, results can be tabulated and rank is created from the number of times each person is considered to be superior.

Future Oriented Appraisals Methods 1. Management By Objectives (MBO)

MBO emphasizes participation by all organization members. The following core elements in MBO: Formation of trusting and open communication throughout the organization Mutual problem solving and negotiations in the establishment of objectives Creation of win-win relationships Organizational rewards and punishments based on job-related performance and achievement. Minimal uses of political games, forces and fear. Development of a positive, proactive, and challenging organizational climate.

Following are the 6 steps in the MBO process: i. ii. iii. iv. v. vi. Formulate long range goals and strategic plans Develop overall organizational objectives Established derivative objectives for major operating units Set realistic and challenging objectives and standards of performance for members of the organization. Formulate action plans for achieving the stated objectives Implement the action plans and take corrective action when required to ensure the attainment of objectives.

MBO evaluation report for a call center person: Objectives set Period objectives Number of calls Number of new 100 20 Accomplishment s 104 18 104 90 variance

customers contacted

Number cracked

of

deals

30

30

100

Customer complaints Number of reports in

34 12

11 10

66.66 80

home office Number of sales 4 2 50

correspondence courses successfully completed Deals failed 2 0 0

2.

Psychological Appraisals:

Large organizations employ full-time industrial psychologist. When psychologists are used for evaluations they assess an individuals future potential and not past performance. The appraisal normally consists of in-depth interviews, psychological tests, discussions with supervisors and a review of other evaluations. The psychologist then writes an evaluation of the employees intellectual, emotional, motivational and other related characteristics that suggest individual potential and may predict future performance. From these evaluations, placement and development decisions may be made to shape the persons career.

3.

Assessment Centers:

An assessment center is a central location where managers may come together to have their participation in job related exercises evaluated

by trained observers. The principle idea is to evaluate managers over a period of time, say by one to three days, by observing and evaluating their behavior across a series of selected exercises or work samples. Assesses are requested to participate in work groups (without leader), role-playing and other similar activities, which require the same attributes for successful performance, as in the actual job. After recording their observation of ratee behaviors, the raters meet to discuss these observations. The decision regarding the performance of each assessee is based upon this discussion of observations.

4.

360 Degree Feedback:

Where multiple raters are involved in evaluating performance, the technique is called 360 o appraisal. The 360 o technique is understood as systematic collection of performance data on an individual or group, derived from a number of stake holders- stakeholders being the immediate supervisors, team member, customers, peers, and self. In fact, anyone who has useful information on how an employee does the job may be one of the appraisers. It enables an employee to compare his or her perceptions about self with the perceptions of others. However, receiving feedback on performance from multiple sources can be intimidating. It may also take a long time on selecting the rater, designing questionnaire, and analyzing the data.

5.

Performance Interview:

Performance interview is another step in the appraisal process. The raters should discuss and review the performance with the ratees, so that they will receive the feedback about where they stand in the eyes of superiors. Feedback is necessary to effect .

TRENDS IN PERFORMANCE APPRAISAL SYSTEM Performance appraisal in its traditional from known as ACR-Annual Confidential Report is often misused than used. Performance appraisal has now been recognized as a HRD function. In the last decade many organizations have reviewed and changed their managerial appraisal systems.

1)

There is a trend away from the composite appraisals with multiple objectives (e.g. performance planning, development rewards and promotions)to separate systems for different systems for different clusters of objectives.

2)

There is a move away from isolated appraisal system to the business linked one .

3)

There is shift away from closed confidential type to open dialogue and discussions based system.

4)

There is a movement quantitative (pseudo objective) to qualitative (interactive, improvement and process oriented) system.

5)

There is a movement away from boss assessed feedback to 360-degrees feedback involving customers, peers, team members, subordinates etc. in addition to supervisors.

6) 7) 8)

There is also a trend away from elaborate systems to simple ones. There is a shift from standard systems to flexible and group specific ones. There is a movement from result oriented systems to process oriented system.

9)

There is a movement from the assessment of individual performance to the development of team performance.

10) There is also a movement from complacency to experimentation through continuous research change. Performance appraisal refers to the assessment of an employees actual performance, behavior on jobs, and his or her potential for future performance. Appraisal has several objectives but the main purposes are to assess training needs, to effect promotions, and to give pay increases. Appraisal of performance proceeds in a set pattern. The steps involved are defining appraisal objectives, establishing job expectations, designing the appraisal programme, conducting performance interview, and using appraisal data for different HR activities. Two important contemporary techniques of performance appraisal include 360 appraisal and goal setting approach to appraisal also known as Managing by Objectives. Currently most of the companies are using one of the following Performance Appraisal Methods:

1). 360 Degree Appraisal Method 2). Rating Scale Method 3). Management by Objective Method Under the 360 Degree appraisal method the employee is rated from all angles i.e., by the superiors, subordinates, peers, suppliers, distributors, customers and clients. Under the Management by Objective method the employee goals are set mutually by the employee's and the management. And the employees are rated based on the accomplishment of these goals. Under the Rating Scale method each employee trait or characteristic is rated on a scale that usually has several points ranging from "poor" to "excellent" (or some similar arrangement).The traits assessed on these scales include employee attributes such as work quality, cooperation, initiative, punctuality and technical competence, etc. The selected traits should be in some way relevant to the appraisee's job. 360 APPRAISAL AND FEEDBACK The 360 degree appraisal involves rating of an employee or manager by everyone above, alongside and below him. Corporate like General Electric India (GE), Reliance Industries Ltd. (RIL), Crompton Greaves, Godrej Soaps, Wipro, Infosys, Thermax and Thomas Cook are all using this tool to find out truths about their managers. Although deployed mostly as a fact-finding technique, 360 appraisals are also used to design promotion and reward system in the organization.

Concept of 360 Appraisal

According to Milliman and others, 360-degree appraisal is the process of systematically gathering data on a persons skills, abilities and behaviors from a variety of sources the manager, peers, subordinates and even customers and clients. Thus, appraisal of an employee is done by his superior, his peers, his subordinates and clients or outsiders with whom he interacts in the course of his job performance. In 360-degree appraisal, besides appraising the performance of the assesses, his other attributes such as talents, behavior, values, and technical capabilities are also appraised. Besides the employee himself, superior, subordinates and peers play an important role in the appraisal. Structured questionnaires are used to collect responses about the employee from his superiors, peers and subordinates. Several parameters relating to performance and behavior are used in the questionnaires. Each manager is assessed by a minimum of fifteen colleagues, at least two of them being his bosses, four of them peer, and six of them subordinates. Even the important customers or clients of the firm may also be requested to give their assessment of the concerned employee. The responses are presented collectively to the assesses in the form of charts and graphs. Comments and interpretations are presented later. Counseling sessions are arranged with the employee to remove the weaknesses identified in the 360 degree assessment.

Merits of 360 Appraisal

The merits of 360 appraisal are as under: (i) The 360 degree appraisal leads to greater self-awareness of those appraised. It reveals strengths and weaknesses in their working styles.

(ii)

The gap between self assessment and the views of ones colleagues of peer group in reduced.

(iii)

It facilitates empowerment of subordinates who get a say in the appraisal of their bosses.

(iv) (v)

Inflexible managers are forced to initiate self-change. Facts about organizational culture and ambience are brought to light by the multiple appraisals.

Limitations of 360 Appraisal

The system of 360 appraisal suffers from the following limitations: (i) (ii) The 360 degree appraisal system ignores performance in terms of goals. The candidate being appraised may not accept negative feedback from the subordinates and peers. He might feel humiliated. (iii) (iv) Responses from colleagues often tend to be biased. Linking rewards to findings under 360 degree appraisal can prove to be unfair. (v) The subordinates and peers might not be fully competent in appraisal.

Guidelines for Better Use of 360 Appraisal

The use of multisource appraisal can be effective if the following guidelines are followed: (i) Involve people. Ask them who should serve as raters, and give them an opportunity to review and interpret the results. This will strengthen their commitment to both the overall process and the specific decisions. (ii) Ensure that relevant data are being collected. Focus on behaviors and outcomes that raters are capable of observing and are competent to evaluate. (iii) Ensure that no single rater can dramatically affect the outcome. Use a large enough sample or eliminate the highest and lowest scores to ensure that no one rater can skew the data. (iv) Train raters in what and how to observe. The better people understand what they look for and how to recordcritical incidents (specific things the person said and did that can be used as examples to support their ratings, and better the quality of the information that will be collected. (v) Ask raters to support their evaluations. Whenever possible, raters should discuss their observations and evaluations with other raters. These discussions should trigger thoughts and combat selective memory. Raters should also be required to provide a rationale for their rating to other raters. This would prevent people from using the process to act on personal grudges. (vi) Move slowly and start small. Any organization considering using 360 feedbacks in the appraisal process should begin by using it for development

purpose only and then gradually to make it a part of appraisal system. Even then, the focus should be on the goal-setting portion of the appraisal. People need to get comfortable with the idea of multisource feedback as a development tool before they can accept it as part of the formal performance management process. A lot of organizations seem to be hurrying to integrate 360 feedback into the human resource management system. Multisource feedback really does have the potential to enhance human resource management system. However, 360 feedback wont fix a system that does not work. (vii) Develop a culture that supports open feedback. Not surprisingly, 360

feedback works best in companies where the environment is participatory rather than authoritarian, where giving and receiving feedback are the norm and are seen as valuable sources of information. If the current system (where only the supervisor does the appraisal) is not working due to lack of straight talk and hesitancy to give direct feedback, it is essential to introduce openness in the organization. (viii) Clear and agreed on performance measures and behaviors. When

360 feedback is used for development only, the organization may be able to settle the list of behaviors and skills that have reasonable face validity and general support: coaching or team building, for instance. However, when the feedback is being used to determine performance ratings, the result and behavior for which people are held accountable must be clear, unambiguous and specific. (ix) The users must support the system and be willing to invest the time required to make it work. The introduction of 360 feedback makes an

already time-intensive appraisal process even more demanding. It means more data to collect and more information to process for the additional feedback. (x) Sound feedback process. While the way the data are collected and presented are always important, two aspects of sound 360 feedback procedure are particularly relevant when the data are used for appraisal purpose: the validity and reliability of the practices for which people will be measured and the confidentiality of the raters.

Elements of 360 Appraisal Program

The elements of 360 appraisal program are as follows: (i) Appraisal by Superior/ Boss. This is the most important element of the 360 degree appraisal. Here the focus is to provide constructive feedback on employees performance and his development needs. It is the responsibility of the superior to ensure that employee sets goals not only in the area of business performance but also in the areas that are vital to the organization. These are called corporate thrust areas and may include relationship management, safety and quality development. If the working style of the employee is a concern area and needs improvement for enhancing effectiveness then goal may be set for style of functioning such as, from short-term to long-term orientation. It is expected of the superior to put career aspirations of the employee in proper perspective. Firstly, superior must communicate to the employee in a clear way what the organization plans for the employee. Secondly, if the employee has unrealistic aspirations, then also it is superiors responsibility

to share with the employee the realistic picture given his/ her strengths, development areas, experience, qualifications, and the organizations ability to provide growth. This is how the superiors appraisal has a very significant role to play. (ii) Appraisal by the Peer Group. The peers play an important role in the life of an employee in the organization. The can also provide a deep insight into the personality make up, attitude and style of working of the employee. For better results, it is essential to select the right peers for the purpose of appraisal. They must include peers both from within the department as well as from the other departments, which are directly connected with the working of employees department. The concept of internal customers comes handy here. Three to five internal customers should normally be chosen for peer appraisal. In order to achieve the purpose of 360 appraisal, the peer group appraisal must strive to get the feedback on (a) employees working style, (b) sensitivity towards others, (c) spirit of co-operation and collaboration, and (d) ability to work as a team member. (iii) Appraisal by the Subordinates. Another distinctive feature of 360 appraisal is the role of subordinates in appraisal. It signifies two things. Firstly, it is a clear expression from the organization that it encourages openness and that feedback is a two-way process. Secondly, it is a systemic recognition of the fact that an employees subordinates do play a vital role in his appraisal. Thus, the purpose of subordinates appraisal is to get first hand assessment of how the subordinates perceive their superior to be in

terms of: (a) delegation of authority, (b) guiding and training of subordinate, (c) motivation of subordinates, (d) team building, etc. Upward appraisal provides an opportunity to the subordinates to give feedback to their superior on the kind of things they would like him/ her to continue doing (status quo), things they would like him/ her to stop doing (areas for corrective action), things they would like him/ her to start doing (areas for new initiatives). (iv) Self Appraisal. Any program of 360 appraisal would not be complete without self appraisal by the employee whose performance is being appraised. Self appraisal facilitates the employee to identify his/ her strengths and weaknesses and provides an opportunity to assess the performance. In a well established system, employees use the self appraisal very effectively and organizations also find that employees often are their own strongest critics and display very high degree of objectivity. Self appraisal also provides an opportunity to the employee to express his career moves for the future. However, this is only for gathering information and that under the given organizational constraints, it may not be possible to provide the career progression desired by the employee. Nevertheless, it is in the organizations interest to at least know on a first hand basis the aspirations of its employees.

RESEARCH METHODOLOGY
Methodology is systematic analysis at tools and techniques used for scientific investigation. I collected the required informations in the primary secondary informations. Collecting the secondary data from the official files, records, books and internet. For the getting the primary data the help of questionnaires is essential objective closed questionnaires type questionnaires were made for workers. Each question contained a set of question relating to performance appraisal system in I.O.C.L. The respondents were approached individually after noting down personnel information; their views on the organizational variables were recorded. The executive were given questionnaire which they filled up by their own later these forms are collected. The information regarding the background of the concerned organization was collected from the official files. All the information from primary sources were collected voluntary participation. In collecting primary sources of data sampling method and Random sampling methods are used.

PROBLEM OF THE STATEMENT

It is difficult for the Human Resource Manager to employ the suitable people out of the pool. Intact, many organizations face critical problems in choosing the people. Selection techniques and methods reduce the complexities in choosing the right candidates for the job.

OVERVIEW OF INDIAN OIL CORPORATION INTRODUCTION

Indian Oil Corporation Ltd. is the acknowledged flag-bearer of native corporate success in downstream petroleum business. Born from the vision of achieving self-reliance for the nation, the company came into being on 1st September 1964 with the merger of Indian Refineries Ltd. with Indian Oil Company Ltd., which was set up in 1959 for spearheading petroleum retailing in Indian.

Indian Oil Corporation Ltd. is the largest National Oil Company in Asia Pacific with a sale with a sales turnover of Rs2,000,000,000 Crore and profits of Rs. 6,115 Crore for fiscal 2004 Beginning with sales of 32,000 kiloliters of petroleum products in 1960-61, Indian Oil marketed 47.56 million metric tones of petroleum products in 2002-03. From a humble marketing share of 2.2% in 1960, the company has carved out a market participation of about 52% in fiscal 2004

Indian Oil is the only Indian corporate in the Fortune Global 500 listing of worlds mega corporate with a ranking of 135 in 2007. The 17 th largest petroleum company in the world, Indian oil is ranked 325th and tops the list among the five Indian petroleum companies in Forbes Global 2000 list, a newly introduced classification of the worlds biggest enterprises in term of a composite ranking of sales, profits, assets and market value. Indian Oil has been adjudged second in petroleum trading among the 15 national oil companies operating in the Asia-Pacific region.

Indian Oil owns and operates 10 out of 18 Refineries at Digboi, Guwahati, Baruni, Gujarat, Haldia, Mathura, Panipat, Chennai, Nagapattinam and Bogaigaon with a combined refining capacity of about 50 million metric tones per annum (MMTPA).

Accounting for 67% of Indias Petroleum Pipelines, Indian Oil operates the widest network of over 7,170 Kms. of Crude Oil and Finished Product pipelines in India with combined capacity of 52.75 MMTPA.

Indian Oils countrywide network of over 21,000 sales points is backed for supplies by its extensive marketing infrastructure comprising 169 bulk storage terminals, installations and depots, 93 aviation fuel stations and 79 LPG bottling plants. Its subsidiary, IBP Co. Ltd., is a stand-alone marketing company with a retail spread of over 2,000 sales points.

Indian Oils ISO-9002 certified Aviation Service command 68% market share and meet the fuel and lubricants needs of domestic and international flag carriers, Defense Services and private aircraft operators.

Indian Oils state-of-the-art applications based R&D Centre is one of the best in Asia, excelling in lubricants technology, refining processes, pipelines transportation and development of bio-fuels. The Centre has developed over 2000 lubricants and grease formulations obtaining several approvals from Original Equipment Manufacturers (OEMs) in Indian Oil Blending Ltd., manufacturers over 450 grades of SERVO brand of lubricants and greases. The Centre has to its credit over 90 national and international parents. Indian Oil Technologies Ltd., a subsidiary company, was incorporated to commercialize R&Ds innovations and technologies.

In pursuit of the Corporate Vision of becoming a major, diversified, transnational, integrated energy company Indian Oil operates across the Hydrocarbon Value Chain from Exploration & Production (E&P) of Crude Oil to downstream products including petrochemicals. Indian Oil is evolving from sect oral dominance in downstream business in India to vertically integrated, transnational energy major. The Corporation is making investments in E&P and import/marketing ventures for oil and gas in India and abroad, with a view to emerge as a major player in petrochemicals by integrating its core refining business with petrochemical streams.

Indian Oil is strengthening its existing overseas marketing ventures and simultaneously scouting new opportunities for marketing and export of petroleum products in overseas markets. Two wholly owned subsidiaries are already operational in Sri Lanka and Mauritius, and regional offices at Dubai and Kaula Lumpur are coordinating expansion of business activities in Middle East and South East Asian region.

Indian Oil is an academy company with full-fledged training centers across the country building competence, confidence and capability to face the challenges of the market place. The Indian Oil Institute of Petroleum Management at Gurgaon, the Indian Oil Management Centre for learning at Mumbai, and the Indian Oil Management Academy at Haldia has emerged as world-class training and management academies.

Indian Oil has been lending its expertise in several areas of refining, marketing, transportation, training and research & development in countries like Sri Lanka, Kuwait, Bahrain, Iraq, Abu Dhabi, Tanzania, Ethiopia, Algeria, Nigeria, Nepal, Bhutan Maldives, Malaysia and Zambia.

Energizing the business aspirations trough Joint ventures and Strategic Alliances, Indian Oil partners with some of the leading corporate in India and abroad-Lubrizol, NYCO-SA, Elf, Petronas, Oil tanking GmbH, Marubeni, Mitsubishi, etc. to build synergy. To bring the convenience of Hydrocarbon energy, to the people.

The Corporations pursuit to benchmark performance and initiatives to achieve excellence in all the core areas as well as relative areas has bestowed a number of international and national awards and accreditations. Reorganization apart from the stream of excellences, Indian Oil dedicates these individual and corporate reorganizations as Earnings for Customers.

OBLIGATIONS TOWARDS CUSTOMERS AND DEALERS

To provide prompt, courteous and efficient service and quality products at fair and reasonable prices.

Towards suppliers To ensure prompt dealings with integrity, impartiality and courtesy and promote ancillary industries. Towards employees Develop their capability and advancement through appropriate training and career planning. Expeditious redressal of grievances Fair dealing with recognized representatives of employees in pursuance of healthy trade union practices and sound personnel policies.

 Towards community To develop techno-economically viable and environment friendly products for the benefits of the people. To encourage progressive indigenous manufacture of

products and materials so as to substitute imports. To ensure safety in operations and highest standards of

environment protection in its manufacturing plants and townships by taking suitable and effective measures. Towards defense services To maintain adequate supplies to Defense Services during normal and emergency situations as per their requirement at different locations.

FINANCIAL To ensure adequate return on the capital employed and maintain a reasonable annual Dividend on its equity capital. To ensure maximum economy in expenditure To manage and operate the facilities in an efficient manner so as to generate adequate internal resources to meet revenue cost and requirements budgetary support. To develop long term corporate plans to provide for adequate growth of the activities of the Corporation. for project investment, without

 To endeavor to reduce the cost of production of the petroleum products manufactured by means of systematic cost control measures. To endeavor to complete all planned projects within the stipulated time and cost estimates.

ORGANISATIONAL SET-UP Indian Oil has its corporate office at New Delhi. The registered office of Corporation is in Mumbai, and its Corporate Office is at New Delhi. A Board of Directors manages the Corporation. Besides the Chairman, the Board has the five full time Functional Directors for Refineries, Marketing, Pipelines, R&D Centre, Finance and Human Resource.

The Corporation is broadly divided into five divisions namely, Refineries, Pipelines, Marketing Division, Research & Development and Assam Oil Division. It also has a wholly owned subsidiary i.e. Indian Oil Blending Limited.

Organizational set-up of IOCL and its Refineries situated all over India can be seen as under:

VISION A major diversified transactional integrated energy company with national leadership and a strong environment conscience playing a national role in oil security & public distribution.

MISSION To achieve international standards of excellence in all aspects of energy and diversified business with focus on customer delight through value of products and services, and cost reduction. To maximize creation of wealth, value and satisfaction for the stakeholders To attain leadership in development, adopting and assimilating state-of the-art technology for competitive advantage To provide technology and services through sustained Research and Development To foster a culture of participation and innovation for employee growth and contribution To cultivate high standards of business ethics and Total Quality Management for a strong corporate identity and brand equity. To help enrich the quality of life of the community and preserve ecological balance and heritage through a strong environmental conscience. In line with above corporation mission, Mathura Refinery has taken up many initiatives in the areas of quality, environment and safety.

HR PROFILE

HR IN IOCL

LAY DOWN POLICIES TO REGULATE & ADMINISTER

PLAN ACQUIRE COMPENSATE DEVELOP SEPRATE REPLACE

HR MISSION

TO FOSTER A CULTURE OF PARTICIPATION AND INNOVATION FOR EMPLOYEE GROWTH AND CONTRIBUTION.

TO CULTIVATE HIGH STANDARDS OF BUSINESS ETHICS AND TQM FOR A STRONG CORPORATE IDENTITY AND BRAND EQUITY.

TO HELP ENRICH THE QUALITY OF LIFE OF THE COMMUNITY & PRESERVE ECOLOGICAL BALANCE AND HERITAGE THROUGH A STRONG ENVIRONMENTAL CONSCIENCE.

HUMAN RESOURCES MANAGEMENT POLICIES AND PROCEDURES SHOULD AIM AT

ATTRACTING EXCELLENCE MAINTAINING EXCELLENCE MOTIVATING EXCELLENCE DEVELOPING EXCELLENCE

INTRODUCTION
Performance Appraisal:The history of performance appraisal is quite brief. Its roots in the early 20th century can be traced to Taylors pioneering Time and Motion studies. But this is not very helpful for the same may be said about almost everything in the field of modern human resources management. As a distance and formal management procedure used in the evaluation of work performance, appraisal really dates from the time of the Second World Warnot more than 60 years ago. Yet in a broader sense, the practice of appraisal is a very ancient art. In the scale of things historical, it might well lay claim to being the worlds second oldest profession! There is, say Dulewicz (1989).. a basic human tendency to make judgments about those one is working with, as well as about one self. Appraisal, it seems, is both inevitable and universal. In the absence of a carefully structured system of appraisal, people will tend to judge the work performance of others, including subordinates, naturally, formally and arbitrarily. The human inclination to judge can create serious motivational, ethical and legal problems in the work place. Without a structured appraisal system, there is little chance of ensuring that the judgments made will be lawful, fair, defensible and accurate. Performance appraisal systems began as simple methods of income justification. That is, appraisal was used to decide whether or not the salary or wage of an individual employee was justified. The process was firmly linked to material outcomes. If an employees performance was found to be less than ideal, a cut pay would follow. On other hand, if their performance was better than the supervisor expected, a pay rise was in order. Little consideration, if any, was given to the development possibilities of appraisal. If was felt that a cut in pay, or a rise, should provide the only required impetus for an employee to either improve or continue to perform well. Some times this basic system succeeded in getting the result that were intended, but more often than not, it failed. For example, early motivational researchers were aware that different people with roughly equal work abilities could be paid the same amount of money and yet have quite different levels of motivation and performance. These observations were confirmed in empirical studies. Pay rates were important, yes, but they were not only element that had an impact on employee performance. It was found that other issues, such as morale and self-esteem, could also have a major influence.

As result, the traditional emphasis on reward outcomes was progressively rejected. In the 1950s in the United States, the potential usefulness of appraisal as tool for motivation and development was gradually recognized. The general model of performance appraisal, as it is known today, began from that time.

Modern 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 weaknesses and strengths as well as opportunities for improvement and skills development. In many organizations -but not all- appraisal results are used, either directly or indirectly, to help determine reward outcomes. That is, the appraisal results are used to identify the better performing employees who should get the majority of available merit pay increases, bonuses, and promotions. By the same token, appraisal results are used to identify the poorer performers who may require some form of counseling, or in extreme cases, demotion, dismissal or decreases in pay. (Organizations need to be aware of laws in their country that might restrict their capacity to dismiss employees or decrease pay). Whether this is an appropriate use of performance appraisal - the assignment and justification of rewards and penalties is a very uncertain and contentious matter.

Controversy : -

Few issues in management stir up more controversy than performance appraisal. There are many reputable researchers, management commentators, and psychometricians - who have expressed doubts about the validity and reliability of the performance appraisal process. Some have even suggested that the process is so inherently flawed that it may be impossible to perfect it (see Derven, 1990, for example), At the other extreme, there are many strong advocates of performance appraisal. Some view it as potentially.. the most crucial aspect of organization life ( Lawrie, 1990). Between these two extremes lie various schools of belief. While all endorse the use of performance appraisal, there are many different opinions on how and when to apply it. There are those, for instance, who believe that performance appraisal has many important employees development uses, but scorn any attempt to link the process is perceived as judgmental, punitive and harrowing. This group believes that the linkage to reward out comes reduces or eliminates the developmental value of appraisals. Rather than an opportunity for constructive review and encouragement, the reward linked process is perceived as judgmental, punitive and harrowing.

For example, how many people would gladly admit their work problems if, at the same time, they knew that their next pay rise or a much wanted promotion was riding on an appraisal result? Very likely, in that situation, many people would deny or downplay their weaknesses. Nor is the desire to distort or deny the truth confined to the person being appraised. Many appraisers feel uncomfortable with the combined role of judge and executioner. Such reluctance is not difficult to understand. Appraisers often know their appraises well, and are typically in a direct subordinate-supervisor relationship. They work together on a daily basis and may, at times, mix socially. Suggesting that a subordinate needs to brush up on certain work skills is one thing, giving an appraisal result that has the direct effect of neglecting a promotion is another. The result can be resentment and serious morale damage, leading to workplace disruption, soured relationships and productivity declines. On the other hand, there is a strong rival argument which claims that performance appraisal must unequivocally be linked to reward outcomes. The advocates of this approach say that organizations must have a process by which rewards which are not an unlimited resource may be openly and fairly distributed to those most deserving on the basis of merit, effort and results. There is a critical need for remunerative justice in organizations. Performance appraisal whatever its practical flaws is the only process available to help achieve fair, decent and consistent reward outcomes. It has also been claimed that appraises themselves are inclined to believe that appraisal results should be linked directly to reward outcomes - and are suspicious and disappointed when told this is not the case. Rather than feeling relieved, appraises may suspect that they are not being told the whole truth, or that the appraisal process is a shame and waste of time.

The Link to Rewards :-

Research (Bannister & Banklin, 1990) has reported that appraises seem to have greater acceptance of the appraisal process, feel more satisfied with, when the process is directly linked to rewards. Such findings are a serious challenge to those who feel that appraisal results and reward outcomes must be strictly is isolated from each other. There is also a group who argues that the evaluation of employees for reward purposes, and frank communication with them about their performance, are part of the basic responsibilities of management. The practice of not discussing reward issues while appraising performance is, say critics, based on inconsistent and muddled ideas of motivation. In many organizations, this inconsistency is aggravated by the practice of having separate wage and salary reviews, in which merit rises and bonuses are decided arbitrarily, and often secretly, by supervisors and managers.

Performance appraisal :-

Performance appraisal, also known as employee appraisal, is a method by which the job performance of an employee is evaluated (generally in terms of quality, quantity, cost and time). Performance appraisal is a part of career development. Performance appraisals are regularly reviews of employee performance within organization. Generally, the aims of a performance appraisal are to : Give feedback on performance to employees. Identity employee training need. Document criteria used to allocate organizational rewards.

Form a basis for personnel decisions: salary increases, promotions, disciplinary actions, etc. Provide the opportunity for organizational diagnosis and development Facilitate communication between employee ad administrators

Validate selection techniques and human resource policies to meet federal Equal Employment Opportunity requirements.

A common approach to assessing performance is to use a numerical or scalar rating system whereby managers are asked to score an individual against a number of objectives/attributes. In some companies, employees receive assessments from their manager, peers, subordinates and customers while also performing a self assessment. This is known as 3600 appraisal. The most popular methods that are being used as performance appraisal process are : Management by objectives. 360 degree appraisal Behavioral Observation Scale Behaviorally Anchored Rating Scale.

Trait based systems, which rely on factors such as integrity and conscientiousness, are also commonly used by businesses. The scientific literature on the subject provides evidence that assessing employees on factors such as these should be avoided. The reasons for this are two fold: 1] Because trait based systems are by definition based on personality traits, they make it difficult for a manager to provide feedback that can cause positive change in employee performance. This is caused by the fact that personality dimensions are for the most part static, and while an employee can change a specific behavior they cannot change their personality. For example, a person who lacks integrity may stop lying to a manager because they have been caught, but they still have low integrity and are likely to lie again when the treat of being caught is gone.

2] Trait based systems, because they are vague, are more easily influenced by office politics, causing them to be less reliable as a source of information on an employees true performance. The vagueness of these instruments allows managers to fill them out based on who they want to /feel should get raise, rather than basing scores on specific behaviors employees should/should not be engaging in. These systems are also more likely to leave a company open to discrimination claims because a manager can make biased decisions without having to back them up with specific behavioral information.

PERFORMANCE APPRAISAL Definition & concepts

Performance appraisal is the process of obtaining, analyzing and recording information about the relative worth of an employee. True focus of the performance appraisal is measuring and improving the actual performance of the employee and also the future potential of the employee. Its aim is to measure what an employee does. According to Flippo, a prominent personality in the field of Human resources, performance appraisal is the systematic, periodic and an impartial rating of an employees excellence in the matters pertaining to his present job and his potential for a better job. Performance appraisal is a systematic way of reviewing an assessing the performance of an employee during a given period of time and planning for his future. It is a powerful tool to calibrate, refine and reward the performance of the employee. It helps to analyze his achievements and evaluate his contribution towards the achievements of the overall organizational goals. By focusing the attention on performance, performance appraisal goes to the heart of personnel management and reflects the managements interest in the progress of the employees.

OBJECTIVES OF PERFORMANCE APPRAISAL To review the performance of the employees over a given period of time. To judge the gap between the actual and the desired performance . To help the management in exercising organizational control.

 Helps to strengthen the relationship and communication between superior subordinates and management employees. To diagnose the strengths and weaknesses of the individuals so as to identify the training and development needs of the future. To provide feedback to the employees regarding their past performance. Provide information to assist in the other personal decisions in the organization. Provide clarity of the expectations and responsibilities of the functions to be performed by the employees. To judge the effectiveness of the other human resource functions of the organization such as recruitment, selection, training and development. To reduce the grievances of the employees.

Traditional Methods of Performance Appraisal

Appraisals Home :Traditional Methods of Performance Appraisal

1.

ESSAY APPRAISAL METHOD :- This traditional form of

appraisal, also known as Free Form method involves a description of the performance of an employee by his superior. includes The description and is an evaluation to of the the performance of any individual based on the facts and often examples evidences support information. A major draw back of the method is the inseparability of the bias of the evaluator.

2.

STRIGHT RANKING METHOD :- This is one of the oldest

and simplest techniques of performance appraisal. In this method, the appraiser ranks the employees from the best to the poorest on the basis of their overall performance. It is quite useful for a comparative evaluation.

MORDEN-METHOD
Appraisals Home : Modern Methods of Performance Appraisal

ASSESSEMENT CENTRES : - An assessment centre typically involves the use of the methods like social/ informal events, tests and exercises, assignments being given to a group of employees to assess their competences to take higher responsibilities in the future. Generally, employees are given an assignment similar to the job they would be expected to perform if promoted. The trained evaluators observe and evaluate employees as they perform the assigned jobs and are evaluated on job related characteristics. The major competencies that are judged in assessment centers are interpersonal skills, intellectual capability, planning and organizing capabilities, motivation, career orientation etc., assessment centers are also an effective way to determine the training and development needs of the targeted employees.

BEHAVIORALLLY ANCHORED RATING SCALES :-

Behaviorally Anchored Rating Scales (BARS) is a relatively new technique which combines the graphic rating scale and critical incidents method. It consists of predetermined critical areas of jobs performance or sets of behavioral statements describing important job performance qualities as good or bad (for e.g. the qualities like inter-personal relationships, adaptability and reliability, job knowledge etc). These statements are developed from critical incidents. In this method, an employees actual behavior is judged against the desired behavior by recording and comparing the behavior with BARS. Developing and practicing BARS requires expert knowledge.

HUMAN RESOURCE ACCOUNTING METHOD :

Human resources are valuable assets for every organization. Human resource accounting methods tries to find the relative worth of these assets in the terms of money. In this method the Performance appraisal of the employees is judges in terms of cost and contribution of the employees. The cost of employees include all the expenses incurred on them like their compensation, recruitment and selection costs, induction and training costs etc whereas their contribution includes the total value added (in money terms). The difference between the cost and the contribution will be the performance of the employees. Ideally, the contribution of the employees should be greater than the cost incurred on them.

Process of Performance Appraisal

Appraisals Home >> Process of performance appraisal

ESTABLISHING PERFORMANCE STANDARDS

The first step in the process of performance appraisal is the setting up of the standards which will be used to as the base to compare the actual performance of the employees. This step requires setting the criteria to judge the performance of the employees as successful or unsuccessful and the degrees of their contribution to the organizational goals and objectives. The standards set should be clear, easily understandable and in measurable terms. In case the performance of the employee cannot be measured, great care should be taken to describe the standards.

COMMUNICATING THE STANDARDS

Once set, it is the responsibility of the management to communicate the standards to all the employees of the organization. The employees should be informed and the standards should be clearly explained to the. This will help them to understand their role and to know what exactly is expected from them. The standards should also be communicated to the appraisers or the evaluators and if

required, the standards can also be modified at this stage itself according to the relevant feedback from the employees or the evaluators.
Establishing performance standards

Communicating standards and expectations

Measuring the actual performance

Comparing with standards

Discussing results ( Providing feedback ) Decision making taking corrective actions

MEASSURING THE ACTUAL PERFOMANCECE

The most difficult part of the Performance appraisal process is measuring the actual performance of the employees that is the work done by the employees during the specified period of time. It is a continuous process which involves monitoring the performance throughout the year. This stage requires the careful selection of the appropriate techniques of measurement, taking care that personal bias does not affect the outcome of the process and providing assistance rather than interfering in an employees work.

 COMPARING THE ACTUAL WITH THE DESIRED PERFORMANCE The actual performance is compared with the desired or the standard performance. The comparison tells the deviations in the performance of the employees from the standards set. The result can show the actual performance being more than the desired performance or, the actual performance being less than the desired performance depicting a negative deviation in the organizational performance. It includes recalling, evaluating and analysis of data related to the employees performance. DISCUSSION RESULTS:The result of the appraisal is communicated and discussed with the employees on one-to-one basis. The focus of this discussion is on communication and listening. The results, the problems and the possible solutions ate discussed with the aim of problem solving and reaching consensus. The feedback should be given with appositive attitude as this can have an effect on the employees future performance. The purpose of the meeting should be to solve the problems faced and motivate the employees to perform better. DECISSION MAKING The last step of the process is to take decisions which can be taken either to improve the performance of the employees, take the required corrective actions, or the related HR decisions like rewards, promotions, demotions, transfer Pre requisites for Effective & Successful Performance Appraisal

Appraisal Home >> Pre-requisites for Effective & Successful Performance Appraisal. The essentials of an effective performance system are as follows :

Documentation means continuous noting and documenting the performance. It also helps the evaluators to give a proof and the basis of their ratings. Standards / Goals the standards set should be clear, easy to understand, achievable, motivating, time bound and measurable. Practical and simple format The appraisal format should be simple, clear, fair and objective. Long and complicated formats are time consuming, difficult to understand, and do not elicit much useful information. Evaluation technique An appropriate evaluation technique should be selected ; the appraisal system should be performance based and uniform. The criteria for evaluation should be based on observable and measurable characteristics of the behavior of the employee. Communication Communication is an indispensable part of the performance appraisal process. The desired behavior or the expected results should be communicated to the employees as well as the evaluators. Communication also plays an important role in the review or feedback meeting. Open communication system motivates the employees to actively participate in the apprasal process. Feedback The purpose of the feedback should be developmental rather than judgmental. To maintain its utility, timely feedback should be provided to the employees and the manner of giving feedback should be such that it should have a motivating effect on the employees future performance. Personal Bias Interpersonal relationships can influence the evaluation and the decisions in the performance appraisal process. Therefore, the evaluators should be trained to carry out the processes of appraisals without personal bias and effectively

Purpose of performance Appraisal

Appraisals Home >> Purpose of Performance Appraisal.

Performance Appraisal is being practiced in 90% of the organizations worldwide. Self appraisal and potential appraisal also form a part of the performance appraisal processes.

Typically, performance Appraisal is aimed at : To review the performance of the employees over a given period of time. To judge the gap between the actual and the desired performance. To help the management in exercising organizational control. To diagnose the training and development needs of the future. Provide information to assist in the HR decisions like promotions, transfers etc. Provide clarity of the expectations and responsibilities of the functions to be performed by the employed. To judge the effectiveness of the other human resource functions of the organizations such as recruitment, selection, training and development. To reduce the grievances of the employees. Helps to strengthen the relationship and communication between superior subordinates and management employees.

According to a recent survey, the percentage of organizations (out of the total organizations surveyed i.e.50) using performance appraisal for the various purposes are as shown in the diagram below;

The most significant reasons of using Performance appraisal are; Making payroll and compensation decisions 80% Training and development needs 71% Identifying the gaps in desired and actual performance and its cause - 76% Deciding future goals and course of action 42% Promotions, demotions and transfers 49% Other purposes 6% (including job analysis and providing superior support, assistance and counseling) Approaches to Performance Development

Appraisals Home Development

>>

Approaches

to

Performance

Performance Appraisal Traditional Approach : traditionally, performance appraisal has been used as just a method for determining and justifying the salaries of the employees. Than it began to be used a tool for determining rewards (a rise in the pay) and punishments ( a cut in the pay) for the past performance of the employees. This approach was a past oriented approach which focused only on the past performance of the employees i.e., during a past specified period of time. This approach did not consider the developmental aspects of the employee performance i.e., his training and development needs or career developmental possibilities. The primary concern of the traditional approach is to judge the performance of the organization as a whole by the past performances of its employees.

Therefore, this approach is also called as the overall approach. In 1950s the performance appraisal was recognized as a complete system in itself and the Modern approach to performance appraisal was developed.

Performance Appraisal Modern Approach :- The modern approach to performance development has made the performance appraisal process more formal and structured. Now, the performance appraisal is taken as a tool to identify better performing employees from others, employees training needs, career development paths, rewards and bonuses and their promotions to the next levels.

Appraisals have become to continuous and periodic activity in the organizations. The results of performance appraisals are used to take various other HR decisions like promotions, demotions, transfers, training and development, reward outcomes. The modern approach to performance appraisal includes a feedback process that helps to strengthen the relationships between superiors and subordinates and improve communication thought the organization.

The modern approach to performance appraisal is a future oriented approach and is developmental in nature. This recognizes employees as individuals and focuses on their development.

[edit] References [edit] Sources

Thomas F.Patterson (1987), Refining Performance Appraisal (HTML). Retrieved on 2007-01-18.

Joyce Margulies (2004-03-04). Performance Appraisals (PDF). Retrieved on 207-01-08. 1998 Archer North & Associatiates, Introduction to Performance Appraisal, http;//www.performanceappraisal.com/intro.htm U.S Department of the Interior, Performance Appraisal Handbook.

Hospet Ispat Pvt. Limited. Employee Performance Appraisal

For the period To Name of employee Employee Number Designation Department Date of Joining Current Grade

: : : : : : :

Form

A) Key result areas and forget fixed for the year 2007 Listing Down key result Key result Areas Areas of Target Discussion between date / Month

B) Step highlights performance major Areas of achievement and short fails. Key Result Self assessment Discussion commit after review

Note : Reviewing officer just marks X

 Job Knowledge :1) Understanding of duties and responsibilities. 2) Mastery of skill and knowledge 3) Understanding and operation of equipments 4) Understanding and promotion of Departments 5) Staying abreast of how Development Comments : Dependability :1) Meeting commitments and work standards 2) Ability to work independently 3) Acceptance of accountability 4) Adaptation to changes 5) Staying to us under pressure 6) Meeting time and attendance requirements and drodline. Comments : Quality :1) Quality consciousness 2) Commitment to quality standards 3) Efforts at continuous improvement 4) Monitoring to quality levels and implementing effective solutions. 5) Adherences to safety pillaging .

developing

and

Problems solving skill and initiative

1) Anticipation and prevention of problem 2) Analysis of problem ant their causes 3) Overcoming obstacles 4) Generation of alternative solutions 5) Use of information in decision making Comments :-

Commutation :1) Readiness to listen quality listing 2) Acceptability and willingness to share information 3) Clarity and effectiveness in oral an written communication 4) Maintain confidentiality

Working Relationship 1) Response to internal and external customs 2) Co-operatively with project teammates 3) Exchange of ideas and opinion 4) Effectiveness in conflict resolution 5) Flexibility and open mindedness 6) Politeness / Courtesy 7) Meeting commitments customers commitments.

Overall performance of employee 1) Excellent 3) Good 5) Poor 2) Very Good 4) Satisfactory

Training needs Related to job Development Related to Environment Related to fire and safety

Reviewing officer name

Department :

Designation :

Signature :

H.R.D Sign. :

M.D. Sign. :

CHAPTER 4 INTERPRETATION OF DATA ANALYSIS

In this chapter an attempt has been made to analysis and interpretation the data collected with the help an interview schedule responded are employees of Hospet Ispat Pvt Ltd (H.I.P.L) (The respondents are selected or randomly).

A sample of 30 employees selected on the random bases by researcher in the study. The description analysis of the data is a follows.

TABLE I Whether the respondents are aware of performance appraisal system. Opinion Yes No Total 30 100 Frequency 30 Percentage 100

This table shows that all respondents strongly answered that they were aware of performance appraisal system.

TABLE 2 Performance appraisal undergone at H.I.P.L Opinion Yearly Yearly twice Yearly thrice More than thrice Total 30 100% Frequency 30 Percentage 100%

This table shows that among thirty respondent all respondents were answered that performance appraisal under gone in H.I.P.L yearly once.

Table-3

Opinion Yes No Total

Frequency 27 03 30

Percentage 89.91% 9.09% 100%

This table shows that proper among 30 employees 89.91% respondents respondent that there is proper use of information and other 9.09% respondents response that there was no proper use of information received through performance.

TABLE 4 Whether the respondents organization feed back system. Opinion Satisfied Normal Dissatisfied Total Frequency 24 06 00 30 are satisfied about

Percentage 82.5% 17.5% 00.00 100%

This table shows that among 30 respondent 82.5% were satisfied about their organizations feed back system remaining 17.5% were normal.

TABLE 5 There was / Is their proper provision of performance feed back Opinion Yes No Total Frequency 26 04 30 Percentage 85.8% 14.2% 100%/

This table shows that among 30 respondent 85.8% were answer that their was proper provision of performance feed back and remaining 14.2% respondents were answered that their was no proper provision of performance feed back.

TABLE 6 Are the respondents think that the performance management system in accordance with selection policy. Opinion Agree Disagree Dont Know Total Frequency 21 01 06 30 Percentage 69.6% 9.9% 19.8% 100.00%

This table shows that among 30 respondent 69.3% were answered that performance management system accordance with selection policy other 9.9% respondent were disagreeing and remaining 19.8% respondents response that they dont know.

TABLE 7 Are the respondent mention records of event they have accomplished? Opinion Always Most of time Certain time Total Frequency 18 06 06 30 Percentage 59.4% 19.8% 19.8% 100%

This table shows that among 30 respondents 59.4% were always mention records of event they have accomplished other 19.8% respondent are mention records of event they have accomplish most of time, and remaining

19.8% respondents are mention records of event they have accomplished certain time.

TABLE 8 Whether the respondents are feel that performance appraisal is necessary to the organization. Opinion Yes No Total Frequency 24 06 00 Percentage 79.2% 20.8% 100%

This table shows that among 30 respondents 79.2% were feel that performance appraisal is necessary to the organization and remaining 20.8% respondents were tell that performance appraisal is not necessary to the organization.

TABLE 9 Are the respondents feel that performance appraisal is necessary to the organization? Opinion Yes No Total Frequency 20 10 30 Percentage 66.7% 33.3% 100%

This table shows that among 30 respondents 66.7% were feel that performance appraisal is necessary to achieve the org. goals and remaining 33.3% respondents were feel that performance appraisal is not necessary to achieve org. goals.

TABLE 10 Are the respondents feel performance appraisal report constitutes important factor which selecting employee training and development program? Opinion Yes No Total Frequency 24 06 30 Percentage 79.92% 19.98% 100%

This table shows that among 30 respondents 79.92% respondents were response that appraisal report constitutes as a important factor which selecting employees training and

development and other 19.98% respondents were responds that appraisal report as not a important factor which selecting employees training and development.

TABLE 11 Are the respondents feeling training and development seminars conferences help them to improving the performance. Opinion Yes No Total Frequency 21 09 30 Percentage 69.93% 29.9% 100%

This table shows that among 30 respondents 69.93% respondents was response that training and development seminars conferences help them improving the

performance and other 29.97% respondents were response that training and development seminars conferences are not help full in improving the performance.

TABLE 12 Are the respondents fell prides in working with this organization? Opinion Always Most of time Certain time Total Frequency 15 06 09 30 Percentage 50% 20% 30% 100%

This table shows that among 30 respondents 50% respondents are response that they fell always pride in working with N.I.P.L and other 20% respondents were response that they fell most of time pride in working with M.I.P.L and remaining 30% respondent were response that they fell certain time pride in working with H.I.P.L

CHAPTER 5 MAJOR FINDING

1) All the employees were aware about performance appraisal and also they know that promotions increments are given them on the biases of performance appraisal. Majority of employees were satisfied on the companies performance appraisal system. It was found that there is proper use of performance feed back. It was found that majority of the sample size 59.4% were of the opinion that performance appraisal gives proper feed back about their job. It was found that majority of the sample size 53.28% were of the opinion that performance appraisal gives proper feed back about their job. It was found that majority of the sample size 79.92% were of the opinion that performance appraisal report constitutes important factor on which selecting employee training and development programme. It was found that all the employees feel necessity of appraising the performance is useful for their carrier development.

2) 3) 4) 5) 6)

7)

8)

It was found that majority of the sample size 70% were of the opinion that they feel proud on for working with the H.I.P.L.

SUGGESTIONS
1. The method of performance appraisal adopted the company does not suit the present condition of the organization. 2. Companies performance taking from some errors so it should adopt the recent methods such as management by objective (MBO) (BARS). 3. The management should go to modern method of training to improve the affiance of the training programme. 4. The current promotion and increment policy of the organization is good and management should not make any alteration.

CONCLUSION
A study on performance appraisal system in Hospet Ispat Pvt. Ltd it is attempt of researcher to understand what is performance appraisal? Whey it is essential to organization? Need of the performance appraisal? Methods of the performance appraisal? Which method applied in H.I.P.L?

The researcher has included on the basis of his study on the topic of A study on performance appraisal system in H.I.P.L has slightly recognized quality of performance appraisal system, determines the success of the organization and improve the quality of man power and also it will help in order to maintain good obtain with their respective job and according to their specialization to increase the productivity of the organization.

QUESTIONNAIRE A STUDY ON PERFORMANCE APPRAISAL SYSTEM IN H.I.P.L

Dear Sir/Madam, I Mis.BASAVARAJESHWARI.M.D am a student of BBM Pursuing my V Sem as part of my course. I am required to do a project work on A STUDY ON PERFORMANCE APPRAISAL SYSTEM IN H.I.P.L. The above mentioned topic. I will be grateful if you kindly answer with your valuable response. Your valuable time is assured of confidentiality.

EMPLOYEE PERSONAL INFORMATION

1.

Name of the Employee

: : : :

2. Age 3. Qualification 4. Designation 5. Department

6. How long have you been working in H.I.P.L. ? 0-6 Months Above 3year 6-12Months 1 Year to3 year

7. Whether You are aware at performace appraisal system? Yes No

8. Performance appraisal undergone at H.I.P.L ? Yearly once More than thrice Yearly twice yearly thrice

9. Is their proper use of the information received through performance management system?

Yes

No

10. Whether you are satisfied about organization fed back system? Satisfied 11. Yes Normal Dis-satisfied

Is their proper provision of performance feed back? No

12. Do you think that the PMS is in accordance with the selection policy? Agree Disagree Dont know

13. Do you mention record of event you have accomplished? Always Most of time certain time

14. Do you feel that performance appraisal is necessary to the organization? Yes No

15. Do you feel performance appraisal encourages to achieve the organization goals? Yes No

BIBLIOGRAPHY

P.SUBBARAO RESOURCE

PERSONNEL MANAGEMENT.

&

HUMAN

C.B.MEMORIA S.V. GANKAR RESOURCE

PERSONNEL MANAGEMENT

&

HUMAN

[edit] References [edit] sources Thomas F.Patterson (1987) Refining Performance Appraisal (HTML) Retrieved on 2007-01-18. Joyce Margulies (2004-03-24). Performance Appraisals (PDF) Retrieved on 2007-01-18 1998, Archer North & Associatiates, Introduction to Performance Appraisal, http;//www.performanceappraisal.com/intro.htm U.S. Department of the Interior, Performance Appraisal handbook.