Human Resource Management is defined as the people who staff and manage organization.

It comprises of the functions and principles that are applied to retaining, training, developing, and compensating the employees in organization. It is also applicable to non-business organizations, such as education, healthcare, etc Human Resource Management is defined as the set of activities, programs, and functions that are designed to maximize both organizational as well as employee effectiveness Scope of HRM without a doubt is vast. All the activities of employee, from the time of his entry into an organization until he leaves, come under the horizon of HRM. The divisions included in HRM are Recruitment, Payroll, Performance Management, Training and Development, Retention, Industrial Relation, etc. Out of all these divisions, one such important division is training and development.

MY RESEARCH

The research report presented here is primarily concerned with training and development part of employees in the organization. Performance appraisal is always an important aspect of the growth of a company and the individual employees as well. Due to daily changing business environment, manufacturing process, technological advancement and rapid growth in the demand of the products and services etc the workforce of any organization has to be very well

equipped with the skills, ability, and talent required to cope up with the market competition. Now a days many organizations are conducting training programme to improve the productivity of employees. The quality of employees and their development through training and education are major factors in determining long term profitability of a business. If you hire and keep good employees, it is good policy to invest in the development of their skills, so they can increase their productivity. Training often is considered for new employees only; this is mistake because ongoing training for current employees helps them adjust to rapidly changing job requirements. Evaluation is the systematic appraisal by which we determine the worth, value or meaning of something to someone , In case of training we are concerned with providing information on the effectiveness of the training activity to decision makers who will make decision based on the information . Evaluation plays a significant part in every step of the training process. It is important that evaluation be a planned or systematic effort that is built from the start of the training process. The main objective of training programme to determine if they are accomplishing specific training objectives, i.e.,correcting performance deficiencies. .

IMPORTANCE PERFORMANCE APPRAISAL Training and development is a routine based, non-stop practice, which a growing business organization must conduct to achieve their production target. From organizational point of view it is very crucial to assure the quality, quantity, and effectiveness etc of the product by the means of suitable training.

Development of the employee comes handy with training activities, making them much more capable in out performing various activities with high professions and accuracy by using advance technical/mechanical tools and equipments.

As a management trainee I myself come through various aspects like performance appraisal, payroll management, labors related laws and issues etc during my training and development project. Evaluating the productivity of the employees can very well recognize how to distribute your workforce. This information gathered after conducting training programmed which is immensely helpful for the human resources manager and the whole department. Training helps measure the performance of the employees by evaluating the training given and comparing the individual and group's latest output with the output given before training programmed.

SCOPE OF THE PROJECT : The scope/range of this research report is not too far stretching to the whole of Reliance Communication, Pune rather it only covers the training and development activities conducted By NIS Sparta for its employees. My project mainly deals with the present method of training given at Reliance Communication during my tenure of the project, July August 2008 This project covers training, training programmed, and training evaluation and excludes all other human resources activities conducted before and after training. 18 HYPOTHESIS: Performance Appraisal conducted by NIS Sparta Reliance Communication are effective and the employees are better performers after the reportis imparted. LIMITATIONS: The research is a collection of study, observation, and practical experience during my summer internship programmed where i was a member of the team working in the training and development of employees 19 I tried to perform this project in best possible manner to avoid any lacuna or lack ness. In spite of all my efforts In this regard but due to the far stretching activities conducted at Reliance Communications, my project lack in some of the following heads

Where there is a chance of further elaborating study on the same subject.

Some information being very sensitive as far as organization is concerned is left untouched and not mentioned in any way.

Top-level strategic type of decisions and information too are not taken under study to avoid any favor to the business counter parts.

My research does not concerned about the designing and planning of training activities which forms a crucial and major part of this field hence a full fledge study can be done in this area.

The data presented here is taken by prepared questionnaire (open ended and closed ended) and information and feedback received from the management.

No training has been conducted on this topic for the purpose of this project thus holds a complete field research and development. Due to Time Constraints, I was not able to touch all aspects of training and development. Due to security reasons, I could not attend the training conducted which would give me a practical experience. COMPANY PROFILE COMPANY PROFILE Reliance Communications Ltd.,Barabanki was launched on December 28,2002.the 70th birthday of the Reliance group founder,Shri Dhirubhai H Ambani. Reliance Communications is a service industry and it daily launches new products with new technologies. Dealing with foreign market they required people who help 21 them to increase productivity of the organization and sales of product.So, they frequently organize the training programme for newly joined and current employee. As they conduct the training programm frequently ,each time they required to evaluate the recently completed training programme.So they have given me that apportunity to evaluate the training programme. Reliance Communication was launched on December 28,2002.the 70th birthday of the Reliance group founder, Shri. Dhirubhai H Ambani .

Reliance Communications is the flagship company of the Anil Dhirubhai Ambani Group (ADAG) of companies. Listed on the National Stock Exchange and the Bombay Stock Exchange, it is Indias leading integrated telecommunication company with over 55 million customers. History In the year 2000, the Infocomm plans were announced.which.by far,was the largest infocom structure that the country had seen so far Reliance Communication launched first Reliance India Mobile on December 28,2002 . Taking in to consideration the changing lifestyles and the end users habits Reliance Communications will disseminate information at a low cost. Make a telephone call cheaper than a post card. Create new customer experiences. Constantly strive to be ahead of the world. Reliance Communications will transform thousands of villages and hundreds of towns and cities across the country. Above all, Reliance Communications will pave the way to make India a global leader in the knowledge age. We will create the next generation communication network and information technology infrastructure that will bring immense value to every Indian, and leapfrog India into the center stage of global infocomm space.

Late Dhirubhai Ambani built Reliance from scratch and in 25 year got it a place among the worlds top Fortune 500 corporations. The fact that he took barely a quarter of a century to do that is what makes this achievement special..Make the tools of infocomm available to people at an affordable cost.They will overcome the handicaps of illiteracy and lack of mobility. Dhirubhai firmly believed the country could use information and communication technology to overcome its backwardness and underdevelopment. Mr, Anil Dhirubhai Ambani is the Chairman of Reliance Infocomm Ltd (RIC) Said, Growth has no limit at reliance. I keep revising my vision. Only when you dream it you can do it. RIC today finds itself on the threshold of a transformation as it strives to meet the challenges of an ever changing and competitive environment to emerge as a performance oriented, system driven, and professional organization. The only way forward is to focus on our Customer & Customer Service. Vision We will leverage our strengths to execute complex global-scale projects to facilitate leading-edge information and communication services affordable to all individual consumers and businesses in India. We will offer unparalleled value to create customer delight and enhance business productivity.

We will also generate value for our capabilities beyond Indian borders and enable millions of India's knowledge workers to deliver their services globally. Mission Reliance Communication will offer a complete range of telecom services, covering mobile and fixed line telephony including broadband, national and international long distance services, data services and a wide range of value added services and app;ications that will enhance productivity of enterprises and individuals. 23 Reliances dream is to make a digital revolution in India by becoming a major catalyst in improving quality of life and changing the face of India. It aims to achieve this by putting the power of information and communication in the hads of people of India at affordable costs. Products: Reliance Communication is a service industry. Reliance Communications offers a wide range of applications including hour-to-hour news updates, high quality video streaming, downloadable multilingual Ring Tones, seasonal updates including festival specials, city & TV guides, exam results, astrology, mobile banking, credit card transaction from mobile phone, bill payment and stock prices. Reliance Communications brings Real Broadband experience to Indians for the first time through a host of unique applications and services. This includes Video Chat, Multilocation Video Conference, Multi-player Online Gaming, High Speed Internet, Virtual

Office, Digital Storage, Digital Movie, Digital Customized Music,Digital Electronic News Gathering Service and E-Learning.

PROBLEM DEFINITION

10

PROBLEM DEFINITION
There are number of factors that lead to low productivity in the organization which is one of the major causes of the company decline. Organizations invest a lot of money in business without paying attention towards its employees potential for job. Organizations are missing satisfactory appraisal for employees. The Employees bear a lot of load, tension and stress. This study is for the purpose of identifying such factors of Performance Appraisal which leads to increase in productivity.

11

NEED OF THE STUDY

This study emphasize in the following:

To identify the effect of Performance Appraisal on the productivity. This study is helpful to that organization for conducting further result. This study is helpful to the organization for identifying the factors of Performance Appraisal that helps in increasing the productivity.

This study helps to make a managerial decision to the organization.

12

OBJECTIVE OF STUDY

13

OBJECTIVE OF STUDY
The objective of study is as follows:

To assess the affect of Performance Appraisal on productivity of of the organization.

To

identify the

factors

of

Performance

Appraisal

which

influence

the

productivity.

To

identify

the

factors

of

Performance

Appraisal

that

improves

the

productivity.

Find the systematic description of an employees job relevant strength & Weakness.

To offer valuable suggestions to improve the productivity of organization through Performance Appraisal.

14

INDUSTRY & COMPANY PROFILE

15

INDUSTRY BACKGROUND

2004 Munich Re throws away Reinsurance JV program with RIL. Reliance Industries Associate signs MOU with National Organic Chemicals Industries Limited (NOCIL) for taking over its petrochemicals & plastic products division.

IPCL picks up gas from Petronet LNG. Reliance industries Ltd has informed that FLAG Telecom on January 12, 2004 announced that the Company (FLAG Telecom) has amalgamated with Reliance Gateway.

Reliance Jamnagar refinery voted best among 50 refineries worldwide. Gujarat gives away Gujarat Garima Awards to Tata, Ambani. Reliance Industries Limited (RIL) has increased the capacity of its Jamnagar refinery to 33 million tonnes from 30 million tonnes.

Mukesh Ambani ranks 40th in the world business leaders. Reliance join hands with Gail for Indo-Iran natural gas pipeline project.

16

Reliance Industries, country largest private sector company, has surged ahead of global players after it posted a net profit of more than $1 billion in 200304.

Reliance Industries Ltd has bagged a National Thermal Power Corporation (NTPC) order to supply 3 million tonnes of natural gas per annum for the latters proposed 1300 - MW power stations at Kawas and Gandhar in Gujarat for seventeen years.

RIL chairman wins Asia Society Leadership award. RIL, IOC inks deal for petro goods offtake. Reliance Industries announced that it had acquired Trevira, a polyester company in Germany, for around Rs 440 crore (E80m), taking it closer to the position of the worlds largest polyester maker.

RIL appoints Parthiv Patel as sports executive. Reliance Industries takes over NIS Sparta. Reliance join hands with Temasek for $200 mn Power Fund. Reliance picks up Nasscom IT Excellence Award. RIL gets Petrochemicals Company of the Year award for 2004-2005. RIL partners with Vivada for sale of diesel to fishing trawlers and boats.

17

Reliance Industries Ltd was awarded the International Refiner of the Year 2005 at the World Refining and Fuels Conferences awards ceremony held in San Francisco on March 10.

2005 Reliance Industries wins annual 2005 ASTD Best Award from American Society for Training & Development.

Reliance Industries wins two National Energy Conservation awards. Reliance Industries bags National Award for R & D Efforts in Industry 2005.

RIL inks MOU with HSIDC for establish multi - product SEZ. Reliance Infocomm has joined hands with Vyjayanti Movies, the producers of Jai Chiranjeeva featuring Tollywood megastar Chiranjeevi, Sameer 3 Reddy and Bhumika Chawla.

2006 RIL inks marketing pact with Gulf Oil. Reliance Industries has unveiled the much - talked about Reliance Fresh brand the first format of the companys Rs 25,000 crore retail initiative, here on October 29.

18

2007 Gail India Ltd and Reliance Industries Ltd (RIL) signing a Memorandum of Understanding (MoU) for cooperation in gas sector on March 15, 2007.

Reliance Industries Ltd has appointed Dr.R.A.Mashelkar has been appointed as an Additional Director on the Companys Board.

Reliance Industries Ltd has formed a $110 million joint - venture with Mammut Group of Dubai.

2008 Reliance signs agreement to acquire assets in Malaysia Consolidating global polyester vision.

RIL buys Malaysian based polyester firm.

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COMPANY BACKGROUND
27 years old RIL Barabanki Manufacturing Division is full of youthful energies, underlying passion and relentless dedication. The power house of confidence and dedication to achieve quantitative success through qualitative performance set it to move ahead towards an unbelievably series of success. RIL Barabanki was incorporated on October 21, 1982 in the name of Indian Polyfibres Limited . lt was joint venture between Philips Carbon Black Limited (PBCL) and Pradeshiya Industrial and Investment Corporation Limited of Uttar Pradesh (PICUP), a UP state government undertaking. The company came out with a public issue aggregating Rs 11.6 cr in December 1985 to part finance a project to manufacture 15000 TPA of Polyester Stapl Fiber. The estimated cost of the project was Rs 73.48 Cr. RIL Barabanki Manufacturing Division is situated at Barabanki 28 kms from Lucknow, started commercial production in January, 1987. The company is engaged in manufacture of Polyester Staple Fiber, Polyester and Tow with tec1nology form Du Pont, USA. RIL BMD had an installed capacity of 15,000 MT per annum but with its own development programmes, the company has been able to enhance its capacity to 19,400 MT per annum in 1994-95, 22400 in 1997-98, 31000 in 2002-03 and to 40000 MT in 2004-05. In the year 1999, company developed specialty polyester Staple Fiber dope dyed black PSF. In the year 2002, it had carried out plant revamping for modernization

20

of plant, increases production capacity and enhancing product quality. Following benefits were derived: Production of Dope Dyed Black Polyester Staple Fiber of international quality on continuous and sustained basis. Increase in production capacity of Dope Dyed Black Polyester Staple Fiber from 54 MT per day to 80 MT per day. Increase in production capacity of Semi Dull PSF from 64 MT per day to 90 MT per day. In the year 2004-05, it had developed and regularized production of Dope Dyed Super Black PSF. In the year 2005-06, the company had added new PSF products based on Extrusion process. RIL BMD (Formerly IPL) obtained ISO certification in June, 1994. The certification has been renewed in 1997 & 2000. The certification was upgraded to ISO 9001:2000 version in May 2003 and renewed in May 2006. The company has obtained ISO 14001:2004 certifications for EMS Environment Management System in September 2005. The company has also obtained OHSAS 18001:1999 certifications in June 2006. India Polyfibres Limited was declared sick and is referred to BIFR (Board for Industrial and Financial Reconstruction) in early 1990s as it continued making losses. The BIFR declared a rehabilitation scheme in March 1995, but the scheme couldnt be implemented. As per the scheme the associated companies of promoters were to bring a sum of Rs 14.5O cr as equity capital which was paid to the financial institutions. Unsecured loans of Rs 2.2O cr brought in by such companies were also converted into equity. Later on BIFR sanctioned further

21

modification to the said scheme of rehabilitation on July 2, 1999. Under this scheme interest, compound interest and direct charges on loans and debentures were waived off, reduction in capitals by 80%, issue of equity share to lenders and part cash payment to them. Reliance Petro products Pvt. Ltd. as co-promoter at that time agreed to comply with the applicable terms and conditions of the said scheme within the stipulated period. Having assurance of investing funds by co-promoters, IPL did have long term contract with Reliance. The company was previously producing PSF under conversion agreement with Reliance Industries Limited to convert the raw material and other input supplied by RIL into PSF on job work basis. It started producing PSF on its own from August l8, 2000. The major changes came in the history of IPL in 2005 when IPCL took over it. The world is witnessing a powerful movement towards greater balance in the midst of an unprecedented surge of prosperity. In this era each and every company is marching forward with unabated self confidence. Indian economy is growing at a sustainable rate which is around 8-9 % and achieving a higher rate is also possible. The successful merger of the 6 polyester units with IPCL provided a new platform of growth allowing it to further integrate the value chain in its existing business and also to create superior and sustainable shareholder value. The merger has allowed IPCL into inorganic pursuits on one platform so that all these companies can further add tremendous value for its customers and wealth for its stakeholders.

22

Indian Petrochemicals Corporation limited was taken over by reliance in 2002. The result of this takeover can be seen in the result of the company but after the amalgamation of the 6 polyester units with the IPCL the increased result even showed a great steep rise. The following six polyester units amalgamated with IPCL with the exchange ratio of shares are:

Appollo Fibers Limited (AFL) (1:25) Central India Polyester Limited (1:23) India Polyfibres Limited (1:28) Orissa Polyfibres limited (1:28) Recron Synthetics Limited (1:34) Silvassa Industries Pvt. Ltd (1:38)

The amalgamation was approved by shareholders of all the six companies. The appointed date of amalgamation is April 1, 2005. The scheme of amalgamation was sanctioned by the High Court of Gujarat at Ahmadabad by its order dated August 18, 2006. The said order was filed with the Registrar of Companies, Gujarat at Ahmadabad on September 27, 2006 and has thus become effective.

23

VISION OF RELIANCE
Our vision is to generate value for the nation, enhance quality of life across the entire socio-economic spectrum and used as RELIANCE as a spearhead to establish Indian as a global, leader in the domains, where we operate. Our aim is to:

Strengthen market leadership to boost share holder value . Develop globally competitive integrated manufacturing and service facilities to set new benchmarks in technology, scale, quality anti costs.

Continual measurable performance improvement in the areas of consumer interests, environment, operating safety, occupational health, anti employee welfare anti community services.

Access and align people skills, knowledge, creativity, funds, materials and service providers to achieve all the above stated goals.

24

HEALTH , SAFETY AND ENVIRONMENT POLICY

Safety of person overrides all the production targets is the Health, Safety and Environment policy of Reliance.

Reliance believes that all injuries, occupational illnesses as well as safety and environmental incidents are preventable.

Reliance shall strive to be a leader in the field of management of Health, Safety and Environment.

Reliance is committed to Conduct all its activities in such a manner as to avoid harm to employees, contractors and the community.

Improve continuously its environmental practices and performance. Minimize adverse impact on environment and risks to the community that arise due to its operations and during transport and distribution of its goods.

Utilize energy resources in a responsible and efficient manner so as to reduce emissions and generation of effluent and waste products.

Comply

with

statutory

requirements

concerning

Health,

Safety

and

Environment.

25

ORGANIZATIONAL STRUCTURE

26

MANAGING DIRECTOR

VICE PRESIDENT

GENERAL MANAGER

SENIOR MANAGER

MANAGER

ASSISTANT MANAGER

JUNIOR EXECUTIVE

JUNIOR OFFICER

SENIOR COORKMEN

WORKMEN

JUNIOR WORKMEN

27

Requisition of manpower by concerned HOD / DI

Sanction by the Site Chief

Advice to Head P & HR for recruitment

INTERNAL

EXTERNAL SOURCING

Examining the job requirement

SOURCING FROM OTHER

Recruitment

Advertisement in newspaper

Head

Sending requisition to corporate Receipt of Applicant Identifying potential candidates Receipt of applications from candidates

Corp. HR circulates it to the associate concern Exploring the internal

Job Rot atio n

Promoti on

Trans fer from other Depar tment

Associate concern send probable candidate list to

Preliminary screening

Short listing candidate Interview of short listed candidates & selection

Interview

Short listing candidate

Selection

Transfer

Deputat ion

Joining formalities & maintenance of master data in sap system

Induction

28

PROJECT PROFILE

29

PERFORAMANCE APPRAISAL
Management Performance appraisal is a method of evaluating the behavior of employees Performance appraisal or merit rating is one of the oldest and most universal practices of in the work spot, normally including both the quantitative and qualitative aspects of job performance. performance appraisal can be an effective instrument for helping people grow and develop in organizational setting through a well organized appraisal system an employee can create learning spaces for himself in an organization. Effectively practiced and development appraisal & review system substantially contribute to the organization health. Organization cannot do away with

performance appraisal. Some form of assessment of performance on a continuing basis is essential for survival as well as growth of an organization. If you do not asses performance, you cannot monitor it, contest it, state it plan it and develop yardsticks to measure it, if you want to improve performance: the performer has to be able to understand it. Performance appraisal is a systematic appraisal of the employees personality traits and performance on the job and is designed to determine his contribution and relative worth to the firm. A formal definition of Performance appraisal is that, It is the systematic evaluation of the individual with respect to his or her performance on the job and his or her potential for development.

30

Performance appraisal is a formal structured system of measuring and evaluating an employees job, related behaviors and outcomes to discover how and why the employee is presently performing on the job and how the employee can perform more effectively in the future so that the employee, organization and society all benefit. Under performance appraisal, we evaluate not only the performance of a worker but also his potential for development.

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COMPONENTS OF APPRAISAL EVALUATION

As we have seen, performance evaluations can be made for a variety of reasons counseling, promotion, research, salary, administration or a combination of these. Therefore, it is necessary to begin by stating very clearly the objectives of the evaluation programme. Having done this, the personnel evaluation system should address the questions who, what, when, where, how? of performance appraisal.

The WHO of Appraisal The appraisal can be accomplished by one or more individuals involving a combination of the immediate supervisor, a higher level manager, a personnel manager, the assessees peers, the assessee himself and the assessees

subordinates. Usually the immediate supervisor must be entrusted with the task of rating the assessee because he is most familiar with his work: and because he is also responsible for recommending or approving personnel actions based on the performance appraisal. The staff a specialists, i.e. the personnel officers, also do appraisal. They may advise the supervisor while evaluating their subordinates stressing the need for evidence for making specific appraisal judgments and comparing a particular subordinates evaluation with those of others. The appraisal of an individual may also be done by his peers. Such appraisal proves effective in predicting future management success. Sometimes self-evaluation is also employed for evaluating performance. Selfrating emphasizes human relations, which supervisors focus on technical

32

knowledge and initiative. This approach has its disadvantage that the individual may rate himself excessively high than it would be if his superior rated him. Many companies use Rating Committees to evaluate employees. These

committees consist of supervisors, peers, and subordinates.

The WHAT of Appraisal The what of the performance appraisal consists in appraising non supervisory employees for their current performance, and managers for

potential. It also includes evaluation of human traits.

The WHY of Appraisal The why of an appraisal is concerned with:

a) Creating and maintaining a satisfactory level of performance of Employees in their present jobs. b) Highlighting employee needs and opportunities for personal growth and development. c) Aiding in decision - making for promotions, transfers, lay - offs and discharges. d) Promoting understanding between the supervisor and his subordinates. e) Providing a useful criterion for determining the validity of selection and training methods and techniques and forming concrete measures for attracting individual of higher caliber to the enterprise.

33

The WHEN of Appraisal The when answers the query about the frequency of appraisal. It has been suggested informal counseling should occur continuously. The manager should discuss an employees work as soon as possible after he has judged it.

The WHERE of Appraisal The where indicates the location where an employee may be evaluated. It is usually done at the place of work or office of the supervisor. Informal appraisals may take anywhere and everywhere, both on the job in work situations and off the job.

The HOW of Appraisal Under how, the company must decide what different methods are available and which of these may be used for performance appraisal. Based on the comparative advantages and disadvantages it is decided which method would suit the purpose best.

34

PURPOSE OF PERFOMANCE APPRAISAL

To create and maintain a satisfactory level of performance. To provide information for making decisions regarding lay-off, retrenchment, etc.

To guide the job changes with the help to continuous ranking. To contribute to the employee growth and development through training, self and management development programmes.

To facilitate for testing and validating selection tests, interview techniques through comparing their scores with performance appraisal ranks.

To ensure organizational effectiveness through correcting employee for standard and improved performance, and suggesting the change in employee behavior.

To facilitate fair and equitable compensation based on performance. To help the superiors to have a proper understanding about their subordinates.

35

WHAT SHOULD BE RATED

The seven criteria for assessing performance are: 1. Quality: The degree to which the process or result of carrying out an activity approaches perfection. 2. Quantity: The amount produced, expressed in monetary terms, number of units, or number of completed activity cycles. 3. Timeliness: The degree to which an activity or a result produced. 4. Cost Effectiveness: The degree to which the use of the organizations resources (e.g. human, monetary, technological, material) is maximized in the sense of getting the highest gain. 5. Need for Supervision: The degree to which a job performer can carry out a job function without supervisory assistance. 6. Interpersonal Impact: The degree to which a performer promotes feelings of self-esteem, goodwill and co-operation among co-workers and subordinates. 7. Training: Need for training for improving his skills knowledge.

36

OBJECTIVE OF PERFORMANCE APPRAISAL

A good performance appraisal has following objectives:

Help employee overcome his weaknesses, improve ones his strengths and thus enable him to improve his performance and that of the department.

Generate adequate feedback and guidelines from the reporting officers to the employee.

Contribution to the growth and development of the employee through helping him in realistic goal setting.

Help in creating a desirable culture and traditions in the organization. Help identifying employees for the purpose of motivating, training and developing them.

Generate significant, relevant, free and valid information about employees. Thus, a good performance appraisal & review system should primarily focus on employee development.

37

METHODS OF APPRAISAL
Broadly, all the approaches to appraisal can be classified into: 1. Past - Oriented 2. Future - Oriented

PAST - ORIENTED

Rating Scales Checklist Forced Choice Method Forced Distribution Critical Incident Method Behaviorally Anchored Scales Field Review Method Annual Confidential Reports Essay Method Cost Accounting Approach

38

Comparative Evaluation Approach a. Ranking Method: b. Paired Comparison Method:

FUTURE - ORIENTED

Management by Objectives Psychological Appraisals Assessment Centre

39

METHODS OF PERFORMANCE APPRAISAL

1. PAST ORIENTED METHODS

Rating scales This is the simplest and the most popular technique for appraising employee performance. The typical rating - scales system consists of several numerical scales, each representing b-id performance criterion such as dependability, initiative output attitude, co-operation and the like. Each scale ranges from to poor The rater checks the appropriate performance level on each criterion then computes the employees total numerical score.

Checklist In this method, the dont evaluate employee performance. He supplies reports about it and the personnel department does the final rating. A series of questions are presented concerning employee to his behavior. The rater then, checks to indicate if the answer to a question about an employee is positive or negative. Generally, the questions are on yes / no pattern.

Forced Choice Method In this the rater is given a series of statements about employee. These statements are arranged in block of two or more, and the rater indicates which statement is most or least descriptive of the employee.

40

Forced Distribution Method The forced distribution method seeks to overcome the leniency - clustering problems by compelling the rater to distribute the rates on all points on the rating scale. The method operates under an assumption that the employee performance level confirms to a normal statistical distribution. For example the following distribution might be assumed to exist - excellent 10%, good 20%, average 40%, below average 20% and unsatisfactory 10%.

Critical Incidents Method The approach focuses on certain critical behaviors of an employee that makes all the difference between effective and non - effective performance of a job. Such incidents are recorded by the superiors as and when they occur.

Behaviorally Anchored Rating Scales Some times this is called behavioral expectation scales, are rating scales whose scales points are determined by statements of effective and ineffective behaviors. A rater must indicate which behavior on each scale best describes an employees performance.

Field Review Method This is an appraisal by someone out side the assesees own department usually some one from the corporate office or the HR department. The outsider reviews employee records and holds interviews with the ratee and his or her

41

superior. The method is primarily used for make promotional decision at the managerial level.

Annual Confidential Report Method In this method each employee is rated confidentially by one or more senior officers for his performance. The report deals with the years work and general opinion of the rater towards the employee. The main problem with this method is that it is not data based and the appraisal is done on the basis of impressions.

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

The raters overall impression of the employees performance. The promotablity of the employee. The jobs that the employee is now able or qualified to perform. The strength and weaknesses of the employee and the training and the development assistance required by the employee.

42

Cost Accounting Method This method evaluates performance from the monetary returns the employee yields to his or her organization. A relationship is established between the cost include 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.

Comparative Evaluation Approaches These are a collection of different methods that compare one workers performance with that of his / her co-workers. Supervisors usually conduct comparative appraisals. As these appraisals can result in a ranking from best to worst, they are useful in deciding merits - pay increases, promotions and organizational rewards. We can classify it into a) Ranking Method, b) Paired Comparison Method.

a) Ranking Method In this, the superior ranks his or her subordinates in the order of their merits, starting from the best to the worst. This method is subject to the halo and recency effects, although ranking by two or more raters can be averaged to help reduce biases. It advantages include ease of administration and

explanation.

43

b) Paired Comparison Method Under this method, the appraiser compares each employee with every other employee, one at a time. The number of comparisons may be calculated with the help of formula, which reads thus: N (N - 1) 12 Where N stands for the number of employees to be compared. After the completion, the result can be tabulated and a rank is created from the number of times each person is considered to be superior. 2. FUTURE ORIENTED METHODS

Management By Objectives The MBO concept, as was conceived by Drunker, reflects a management philosophy which value and utilized employee contributions. Application of MBO in the field of performance appraisal is a recent thinking.

Psychological Appraisals Large organizations employ full - time industrial psychologists. 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

44

intellectual, emotional, motivational and other work - related characteristics that suggest individual potential and may predict future performance.

Assessment Centers Mainly used for executive hiring, assessment centers are now being used for evaluating executive or supervisory potential. An assessment center is a central location where managers may come together to have their participation in job related exercises evaluated by trained observers.

45

360 DEGREE PERFORMANCES APPRAISAL

Typical appraisers are: supervisor, peers, subordinates employees themselves, users of service and consultants. Performance appraisal by all these parties is called 360 DEGREE PERFORMANCE APPRAISAL. 1. Supervisors: Supervisors include superiors of the employee, other superiors having

knowledge about the work of the employee and department head or manager. General practice is that immediate superiors appraise the performance, which in turn is reviewed by the departmental head / manager. 2. Peers: Peer appraisal may be reliable if the work group is stable over a reasonably long period of time and performs tasks that require interaction. 3. Subordinates: The concept of having superiors rated by subordinates is being used in most organizations today, especially in developed countries. Such a novel method can be useful in other organizational settings too provided the relationships between superiors and subordinates are cordial.

46

4. Self-Appraisal: If individuals understand the objectives they are expected to achieve and the standards by which they are to be evaluated, they are to a great extent in the best position to appraise their own performance. 5. Users of Service Customers: Employee performance in service organizations relating to behaviors,

promptness, speed in doing the job and accuracy, can be better judged by the customers or users of services. 6. Consultants: Sometimes consultants may be engaged for appraisal when employees or employers do not trust supervisor appraisal and management does not trust the self-appraisal a peer appraisal or subordinate appraisal.

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THE POST APPRAISAL INTERVIEW

This interview provides the employee the feedback information, and an opportunity to the appraiser to explain the employee his rating, the trail and behavior he has taken into consideration for appraisal etc. Further, it helps both the parties to review standards, set new standards based on the reality factors, and helps the appraiser to offer his suggestions, help, guide and coach the employee for his advancement. Thus, the post appraisal interview is designed to achieve the following objectives: 1. To let employees know where they stand. 2. To help employees do a better job by clarifying what is expected of them. 3. To plan opportunities for development and growth. 4. To strengthen the superior - subordinate working relationship by developing a mutual agreement of goal. 5. To provide an opportunity for employees to express themselves on

Performance related issues. Thus, post appraisal interview is most helpful to the employee as well as his superior.

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KEY ELEMENTS OF PA SYSTEMS

1. Performance Improvement: Performance feedback allows the employee,

manager, and personnel specialists to intervene with appropriate actions to improve performance. 2. Compensation Adjustments: Performance evaluations help decision makers to determine who should receive pay raises. Many firms grant part or all of their pay increases and bonuses based upon merit, which is determined mostly through performance appraisals. 3. Placement Decisions: Promotions, transfers, and demotions are usually based on past or anticipated performance. Often promotions are reward for past performance. 4. Training and Development Needs: Poor performance may indicate the need for retraining. Likewise, good performance may indicate untapped potential that should be developed. 5. Career Planning and Development: Performance feedback guides career decisions about specific career paths one should inv 6. Staffing Process Deficiencies: Good or bad performance implies strengths or weakness in the personnel departments staffing procedures. 7. Informational Inaccuracies: Poor performance may indicate errors in job analysis information, human resource plans, or other parts or the personnel

49

management information system. Reliance on accurate information may have led to inappropriate hiring, training, or counseling decisions. 8. Job Design Errors: Poor performance may be a symptom of ill-conceived job designs. Appraisals help diagnose these errors. 9. Dual Employment Opportunity: Accurate performance appraisals that actually measure job related performance ensure that internal placement decisions are not discriminatory. 10. External Challenges: Sometimes performance is influenced by factors outside the work environment, such as family, financial, health, or other personal matters. If uncovered through appraisals, the human resource department may be able to provide assistance. 11. Feedback to Human Resources: Good / bad performance throughout the Organization indicates how well the human resource function is performing.

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1. PERFORMANCE STANDARDES ARE ESTABLISHED

2. INFORM THESE STANDARDES

3. INSTRUCTION GIVEN FOR APPRAISAL

4. FINDING OUT THE INFLUENCE

5. COMPARING THE PERFORMANCE

6. FINDING OUT DEVIATIONS

7. COMMUNICATING, THE ACTUAL PERFORMANCE

8. SUGGESTING NECESSARY CHANGES

9. FOLLOW UP OF PERFORMANCE APPRAISAL REPORT

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PERFORMANCE APPRAISAL IS A NINE STEP PROCESS

At the First stage, performance standards are established based on job description and job specification. The standards should be clear, objective and incorporate all the factors.

The Second stage is to inform these standards to all the employees including appraisers.

The Third stage is following the instruction given for appraisal. Measurement of employee performance by the appraisers through observation, interview, records and reports.

The Fourth stage is finding out the influence of various internal and external factors on actual performance.

The Fifth stage is comparing the actual performance with that of other employees and previous performance of the employee and others.

The Sixth stage is comparing the actual performance with the standards and finding out deviations.

The Seventh stage is communicating, the actual performance of the employee and other employees doing the same job and discuss with him about the reasons for positive or negative deviations from the preset standards as the case may be.

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The Eighth stage is suggesting necessary changes in standards, job analysis, internal and external environment.

The Ninth stage is follow - up of performance appraisal report. This stage includes guiding, counseling, coaching and directing the employee or making arrangements for training and development of the employee or making arrangements for training and development of the employee in order to ensure improved performance. If the actual performance is very poor and beyond the scope of improvement, it may be necessary to take steps for demotion or retrenchment or any suitable measure.

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PROBLEMS OF PERFORMANCE APPRAISAL

The major problem in performance appraisal is: 1. Rating Biases: The problem subjective measure (is that rating which is not verifiable by others) has the opportunity for bias. The other biases include:

Halo Effect The Error of Central Tendency The Leniency and Strictness Biases Personal Prejudice The Recency Effect

a) Halo Effect: It is the tendency of the raters to defend excessively on the rating of one trait or behavioral consideration in rating all other traits or behavioral considerations. One way of minimizing the halo effect is appraising all the employees by one trait before going to rate on the basis of another trait. b) The Error of Central Tendency: Some raters follow play safe policy in rating-by-rating all the employees around the middle poin of the rating scale and they avoid rating the people at both the extremes of the scale. They follow play safe policy because of answerability to management or lack of knowledge about the job and person he is rating or least interest in his job.

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c) The Leniency and Strictness Biases: The leniency bias crops when some raters have a tendency to be liberal in their rating by assigning higher rates consistently. Such ratings do not serve / any purpose. Equally damaging one is assigning consistently low rates. d) Personal Prejudice: If the rater dislikes any employee or any group, he may rate them at the lower end, which may distort the rating purpose and affect the career of these employees. e) Recency Effect: The raters generally remember the recent actions of the employee at the time of rating and rate on the basis of this recent action. 2. Favorable or unfavorable rather than on the whole activities. 3. Failure of the superior in conducting performance appraisal and post

performance appraisal interviews. 4. Most part of the appraisal is based on subjectivity. 5. Less reliability and validity of the performance appraisal techniques. 6. Negative ratings affect interpersonal relations and industrial relations system. 7. Influence of external environmental factors and uncontrollable internal factors. 8. Feedback and post appraisal interview may have a setback on production. 9. Management emphasizes on punishment rather than development of an

employee in performance appraisal.

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10. Some ratings particularly about the potential appraisal are purely based on guesswork. 11. Supervisors were often confused due to too many objectives of performance appraisal.

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WHY APPRAISAL TECHNIQUES PROVE FAILURE

Performance appraisal techniques have often failed to give a correct assessment of the employee. The causes of such failures are: 1. The supervisor plays dual and conflicting role of both the judge and the helper. 2. Too many objectives often cause confusion. 3. The supervisor feels that subordinate appraisal is not rewarding. 4. A considerable time gap exists between two appraisal programmes. 5. The skills required for daily administration and employee development are in conflict. 6. Poor communication keeps employees in the dark about what is expected of them. 7. There is a difference of opinion between a supervisor and a subordinate, concerning the laters performance. 8. Feedback on appraisal is generally unpleasant for both supervisor and subordinate. 9. Unwillingness on the part of supervisors to tell employees plainly how to improve their performance.

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PRODUCTIVITY
Maintaining a high productivity is the life of a successful business all around the world. No matter how much money you invest in your business without productivity implementation strategies your business would not progress and would eventually collapse. For a small business, productivity is of more importance as the business thrives on this to gain position in the market and through this earn sales, hence, profit. Therefore, it is essential for employers to be aware about the aspects of maintain a stable and reliable productivity to satisfy their client / customers. It is only the best-practiced business with continuous performance that it can bring quality productivity. To do so business must have a knowledgeable management and process improvement plans implemented. Productivity in an industrial context is output of an aspect of production per unit of input. It is a method used to measure the quantity of output of worker, machine, or an entire national economy in the making of good, services, or commodities to produce income. When referring to productivity there are several concepts that we need to know:

Economics Productivity The amount of output created to produce per unit input used.

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Linguistics Productivity It is the degree to which a grammatical process can be completed to new cases.

Corporate Finance Productivity This is refers to the current years sales to expense.

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BENEFITS OF PRODUCTIVITY
In improving the productivity of a company, the business will gain many benefits. These can include: 1. Increase in income / profitability. 2. Lowering running costs / operational costs. 3. Maximizing the use of all of the companys resources such as land, equipments / machineries, factory, workers, and etc. 4. Gaining a greater share of the market. 5. More cash flows mean more opportunity for the company to expand and grow.

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PRODUCTIVITY IMPROVEMENT
One of the major causes of companys decline is low productivity. Failure to meet targeted productivity can result to high costs per unit, hence higher prices, making your good, services, or commodities not competitive enough on the market. Many businesses try very hard to remain competitive in the market. Therefore, it is important for businesses to implement strategies to make improvements in productivity levels. Businesses can make productivity improvement by asking themselves the following questions:

ABOUT THE BUSINESS ITSELF Research and Analysis: Has the business done any research on the targeted markets and analyze the result on the approaches best fit?

Smart Investment: Has the business calculated the amount of financial resources available to allocate to research and analysis, production cost, labor cost, and marketing?

Productive Risks: Are there any risks that the company should know of during production?

Innovation and Originality: Is your product something original and in a new market?

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ABOUT EMPLOYEE Safe and Friendly Work Environment: What sort of environment are you providing your employees?

Use of Employee: Is the business maximizing its use of employees to best suit the business needs?

Employee Knowledge: How familiar (what knowledge) are your employee with the running of machines / equipments, products of the companies? Does employee require training?

Employee Happiness: Are the employees happy with their wages, rewards and hours of work given?

All these factors mention above will assist you and your business to strive to achieve your target.

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PERFORMANCE APPRAISAL

100
COMPENSATATION

DECISIONS

PROMOTION DECISIONS

T&D 80 PROGRAMMES

FEEDBACK

PE7RSONNAL DEVELOPMENT

60 40 20

East West North

RAISES 0
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

EMPLOYEES MORALE

BETTER MANAGEMENT DECISIONS

MOTIVTING EMPLOYEES

EMPLOYEES IMPROVEMENT

INCREASING PRODUCTIVITY

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PERFOMANCE MANAGEMENT SYSTEM AT RELIANCE

OBJECTIVE To provide the structure for the periodic reviewing of individual performance against Management By Objective (MBO) and principal accountabilities. It provides an opportunity to the superior and subordinates to discuss and elicit feedback of skill inventory, to agree on improvement activities over the next appraisal period, a scope to learn and acquire new skills, knowledge and abilities to realize his / her potential, help in confidence building measures and career development. It also provides the inputs for managing the Human Resources, i.e. Training and Development, career planning and succession planning of the employees

SCOPE All Regular employees.

ACCOUNTABILITIES Appraisee: To support wholeheartedly the exercise of appraisal with openness, honesty and seriousness.

Appraiser: To review and discuss performance and characteristics of the appraisee in an open, fair, unbiased manner. To adhere to the discipline of appraisal process and meet the deadlines.

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Reviewer:

To

ensure

that

the

appraisee

and

appraiser

follow

the

accountabilities and moderate the process where necessary.

HRD: To ensure that both the appraiser and appraisee understand their roles and follow the specified time frame. To ensure that appraisal process is followed and to regularly monitors the implementation of the developmental action plan.

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COMPONENTS OF APPRAISAL SYSTEM

HOW THIS SYSTEM WORKS: TIER - 1 1. Performance assessment emanating from KRAs and performance objectives with 80% weightage. 2. Tier-I carries a total of 1000 credit points for different performance areas which are as follows

Performance Areas Functional (specific to a function) Individual assessment HSE / HR / Quality / system / IR a) SI.No. I II III IV V VI

Weights / Credits 500 200 300

VII VIII IX X

KRAs Credit Points Production Volume / Quantity Quality 500 Specific Consumption Plant availability Maintenance cost Special projects / Assignment / value additions / cost saving 150 measure / Innovative Ideas HSE 50 Training / HR 50 Quality system and documentation 50 Industrial Relation (IR) 50

b) Each KRA may be divided into two or more evaluation areas i.e. sub KRAs.

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c) First five KRAs are specific to a function. d) KRAs pertaining to HSE, IR, Quality system and documentation & HR and training are common with the weightage across levels i.e. is same for all cadre e) The 6th KRA is special task I assignments which is common across function areas discipline which helps in distinguishing between individuals. MEASUREMENT OF PERFORMANCE: 1. Relative importance determines marks allocated to a given KRA as well as credit / debit points 2. Credit points as per KRA vary level wise depending on the degree of direct responsibility and influence of particular position I person on that 3. The total marks spread over different performance objective under each KRA are again based on relative importance / criticality. 4. If there is a shortcoming in any of the functional area which depends upon the team performance and has actually occurred due to an individuals lapse, debit points would accrue for the team while the individual will face a heavier penalty. FUNCTIONAL PERFORMANCE AREA: In this performance appraisal process maximum stress has been put on Team Performance Team Performance KRAs extended to all function to emphasize the team concept.

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PERFORMANCE MATRIX
In principle the Individual Performance Matrix (IPM) can be notionally divided into two parts. 1. Team matrix 2. Individual Matrix 1. For achievement of the set targets, the prescribed credit points would accrue to all team members for the team performance and to an individual for the individual performance. 2. Any drop I deviation from the targets will lead to Debits while the overall debit points for the negative variance vis--vis has been prescribed for the team, the individual will be liable to the lose additional points bin case of direct responsibility for deviation. These debit points will be determined depending on gravity of error, quantum of loss, Extraneous I Inhibiting Factors, etc. as a part of the appraisal process.

KRA 6 is intended to cover every individuals distinguishing contribution I efforts made in respect of either assigned projects or innovations, cost saving measures, value additions etc. This has been specifically design to acknowledge and reward individual excellence.

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KRA 7 (Health, Safety I Fire, Environment) Debit will apply to an individual and his superiors but not his peers / others who may not be connected with the safety incident. Similarly, there is scope to earn separate credit points for an individual through safety suggestion and reporting of near misses and unsafe acts / conditions.

KRA 8 (Training and HR) This is intended to cover self training, training of subordinates, for the training programmes organized by learning centre or HR based on Individual Need Assessment of self & subordinates. This also include Quarterly Review, Counseling and maintaining of performance diary.

KRA 9 (Quality System & Documentation) This includes proper maintenance of each and every documents of ISO 9000 and 14001 for surveillance audits. Also, revision of SOPs ISOC5 decided by the plant.

KRA 10 (Industrial Relations) There is a scope for the team to earn separate credit points based on the number of implemented suggestions. In this case the team means the concerned immediate supervisor, Production / Departmental Manager and Plant Manager.

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Disciplinary Action: Will be deemed to be complete when the matter is brought to logical conclusion resulting in either appropriate punishment or withdrawal of charge sheet. However, no debit will be accrued in the event of prolonged enquiry beyond the control of the employee. Further, for the discipline violations not reported and discovered, it will result into prescribed debits. TIER - II The appraisal for managerial key dimensions determined cadre wise with 20% weightage.

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PERFORMANCE DIARY
The performance diary is a meant to track I capture the significant performance events whether positive or negative (credit or debit). This is also the tool for recording the personal contributions in terms of innovative ideas, suggestions, cost saving efforts etc. The filling up of the performance diary is a most critical and important aspect on which the entire system rests. Each and every individual has responsibility to highlight any significant event in the performance diary, timely and properly. While for an individual on the other hand, it may mean establishing clear responsibility for a fault / formal operation misjudgment etc., on the other hand it will mean recording of credits worthy efforts contributions which may otherwise go unnoticed. It is also essential to mention the impact of the incident in terms of beneficial and detrimental consequences as the case may be. Where ever possible, the consequence needs to be quantified. Two important factors which is likely to be recorded in the performance diary are as follows:

FACILITATING FACTOR Are those factors that are beyond the control of the appraisee that have to better Performance. Example: Availability of resources in time.

INHIBITING FACTOR Are those factors that are beyond the control of the appraisee that have led to poor performance. Example: Power failure that has led to loss of output.

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WITH WHOM IT WILL BE AVAILABLE The performance diary will remain in custody of the immediate superior and it will be the joint responsibility of the appraiser and the appraisee to maintain the sanctity of this instrument through timely and meticulous recording. In fact, maintenance of performance diary has been kept as the important parameter for performance assessment measurement.

WHO WILL BE THE APPRAISER The appraiser will be the sectional head / Departmental head.

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RESEARCH METHODOLOGY

73

RESEARCH PROBLEM
I have selected topic that is EFFECT OF PERFORMANCE APPRAISAL ON PRODUCTIVITY OF THE ORGANISATION as research problem for my research report. As a research problem is the situation that causes the researcher to feel apprehensive, confused and ill at ease. It is the demarcation of a problem area within a certain context involving the WHO or WHAT, the WHERE, the WHEN and the WHY of the problem situation. RESEARCH OBJECTIVE How productivity relates with performance appraisal. In addition, the major factors of performance appraisal, which have taken a part in increasing productivity of the organization. RESEARCH DESIGN USED As research design is simply the framework or plan for a study i.e. used as a guide in collecting and analyzing the data. Therefore, we used Descriptive Research Design in our project. Descriptive Research Design consists; 1. Search of Secondary Data and Literature 2. Primary Data

74

RESEARCH INSTRUMENT USED I have used the following research instruments in my project:

Questionnaire The term questionnaire usually refers to a self - administered process where by the respondent himself read the question and records without the assistance of an interviewer.

Observation Method The observation method is useful to know the reaction of handicapped information.

Interview The interview method of collection data involves presentation of oral - verbal stimuli and reply in terms of oral - verbal response.

SAMPLING TECHNIQUE USED When field studies are under taken in practical life, consideration of time cost and some other factors almost invariably lead to a selection of respondents. The selected respondents constitute a sample and the selection process is called sampling technique.

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A sample design is definite plan determined before any data are actually collected for obtaining a sample from a given population. Samples can be either probability sample or non-probability sample. I have selected simple random sampling in my project,

Simple Random Sampling This type of sampling is also known as chance sampling or probability sampling where each item in the population has an equal chance of being selected in the sample.

Sample Size When a survey is undertaken and when it is not possible to cover the entire population the researcher has to answer the basic question how large should be sample be? The sample size decision is related directly to research cost. The intended sample size is the number of participants planned to be included in the trial, usually determined by using a statistical power calculation. I have taken 50 people in my sample size, as the sample size should neither so small nor so large.

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METHOD USED FOR DATA COLLECTION The task of data collection begins after a research problem has been defined and research design chalked out. While deciding about the method of data collection to be used for the study the researcher should keep in mind two types of data:

Primary data Secondary data

1. Primary Data Those data that have been observed and recorded by the researchers for the first time in their knowledge.

Questionnaire Interview method

2. Secondary Data Secondary Data provided the knowledge about the other factors of Performance Appraisal effecting productivity. These are the data which are collected from various sources such as:

Internet Sites Books Magazines

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ANALYTICAL TOOLS USED The term analysis refers to the computation of certain measures along with searching for patterns of relationship that exists among data group. Analysis is essential for a scientific study and for ensuring that we have all relevant data for making contemplated comparisons. Therefore, I have used Tabulation, Graphs & Charts in my project.

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SWOT ANALYSIS

79

SWOT ANALYSIS OF RIL

STRENGTH Its strength lies in its brand name. It is the largest producer of black fiber in India. Its strength lies in its policies of quality, health, safety and environment. It uses latest technology of production. WEAKNESSES Low consideration for the workers class opportunity. In todays technological world fiber is being used as a major source of communication such as fiber optical cable.

Fiber is being used in many products such as clothes, tiers, car interiors, veil etc.

THREATS New competitors are coming in market.

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ANALYSIS

81

80
80 70
60 50 40 30 20 10 0 YES NO

20

INTERPRETATION: Majority of employees of RIL barabanki are aware of the Performance Appraisal system of their organization.

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TEAM PERFORMANCE 85%

INTERPRETATION: Most of the respondents said that the major factor analyzed in evaluating their performance is Team Performance. The other factors considered are Individual Performance and Performance Diary.

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10%

20%

OUTPUT/WORKER

OUTPUT RELATED TO INPUTS GDP/TOTAL POPULATION

70%

INTERPRETATION: The pie chart clearly shows that the best expression for productivity is given by output related to input.

84

Business Services 10% Mining 20% Manufacturing 70%

INTERPRETATION: It is very clear from above pie chart that it is easy to measure productivity in a Manufacturing unit than in Mining or Business Services.

85

80

80 70 60 50 40 30 20
15

10 0

MATERIAL INPUT LABOUR INPUT DEPRECIATED CAPITAL STOCK

INTERPRETATION: This says that the most difficult input to measure in the production process is the Labour Input.

86

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

35
Increasing the Salary Training of Employees Investment in Machinery

40

25

INTERPRETATION: The analysis of this question led to the fact that training of employees plays an important role in increasing the productivity of an organization.

87

60 50 40 30 20 10 0

Less Costly Immediately Communicated Post Appraisal Interview

INTERPRITATION: This says that a successful appraisal is one which could be easily communicated down the line.

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Difference of Opinion 20%

Poor Communicati on 10%

Conflicting role of Supervisor 40%

Too many Objective 30%

INTERPRITATION: The main cause of failure of an appraisal is Conflicting role of Supervisors. The other causes are Too many Objectives, Difference of Opinion and Poor

Communication.

89

PRODUCTIVITY INCREASES THROUGH PA

INTERPRITATION: 85% of total respondents feels that productivity increases through Performance Appraisal.

90

60

50
40 30 20 10 0
YES 60% NO 40%

INTERPRITATION: Most of the people working as a employee of RIL barabanki are satisfied with the current Performance Appraisal system provided by the organization.

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THE JUXTAPOSITION OF RESEARCH AND PRACTICE

Cognitive Processing Issues Research has indicated that expectations of future performance influence the rating process. Since these expectations are formed on the basis of prior knowledge or beliefs, raters will virtually always have some prior performance expectations. It also seems that the type of appraisal process used would affect the degree to which prior expectations became problematic. For example, in MBObased systems, the mechanism through which a manager and subordinate arrive at mutually agreed upon goals requires that each individual form expectations regarding the level of performance that is achievable. Furthermore, since performance is measured against established goals, prior knowledge of job performance can also be expected. Therefore, prior expectations and prior knowledge not only exist, they are salient key features in the appraisal processes used in many organizations. Therefore, performance appraisal practice stands to benefit substantially from this line of research. Additionally, future research should explicitly consider the impact of prior knowledge and expectations under varying conditions of salience created by different appraisal systems. The conditions under which actual appraisals occur also suggest that continued research on memory characteristics should prove to be valuable. This becomes apparent with the realization that managers report spending only a few hours per year assessing the performance of each employee. This time includes keeping records, completing forms, preparing for the appraisal interview and delivering feedback.

92

FINDINGS

93

FINDINGS

Most of the employees are aware with the PA system. Most of the employees are satisfied with the current PA system. Most of the employees feel that productivity increases through Performance Appraisal.

The current performance appraisal process is very lengthy. Performance of the whole group varies on the basis of individual performance. The employees are appraised only ones in a year.

94

CONCLUSION

95

CONCLUSION
In concluding, I suggest that performance appraisal research and practice seem to converge on many issues and diverge on others. Divergence on some issues is not necessarily a problem since relevancy for decision makers is not the purpose for all research efforts. Yet performance evaluation is an applied subject, and as such research should eventually lead to improvements in practice. Continued reliance on student samples and laboratory settings is not facilitating the transfer of research into application. We do however need better understanding of the information processing capabilities and limitations of human decision making.

We also need to continue developing a more comprehensive theory of the rating process. Since Wherry's work in the 1950s' (see the Appendix to Landy and Farr, 1983), the collection of studies on information processing is the most serious, concentrated attempt to date to better understand the rating process. In that framework, continued research along those lines is useful indeed. However, attention must be paid to the potential effects of situational or contextual variables. Examining appraisal issues in sterile environments may isolate the effects many researchers wish to investigate, but also limits the generalizability of the results, and removes the issues from the attention and interests of human resource decision makers. If research is to inform practice, interaction between researchers and managers, and application of research results are important. On the other hand, organizations continue to do things that undermine the effectiveness of the appraisal process. Little time is spent on the appraisal process, raters

96

are not systematically trained and are not held accountable. The employee's role in the performance process is overlooked as are many potentially valuable sources of performance information (self, peers, subordinates). While research has done much to suggest improvements regarding many of the practices noted above, it may ultimately be the changing nature of work that leads managers to implement practices that research has 30 legitimized. For example, the trend toward self-managed work teams is diminishing the traditional supervisor-subordinate relationship. -While on the one hand this may ultimately. lead to greater acceptance of peer appraisals, on the other hand it is likely to force research into new directions as well. The cognitive processes involved in peer appraisals are likely to differ from those in supervisory ratings due to the differences in power and socialinteractions resulting from peer relationships. Based on the vast study and analysis I have get this conclusion that most of the employees are think that productivity can be raised through performance appraisal. So I can say that the top management role needs a tremendous change towards the role of appraiser. Every manager in the organization hierarchy at his own position has the same role of appraisers . This system is not only an appraisal tool but a strong instrument of performance management. Most of the executive of RIL are satisfied with the current appraisal system & they think that the current appraisal system is transparent and free from bias. The current appraisal system is able to achieve its laid objective efficiently and effectively.

97

Thus to increase productivity organization has to satisfy the employees need for high levels of the job satisfaction and an overall improver quality of work life consistence with the dignity of employees as a human being. A hope that this project is of utmost value to all who are in this field and also feel that the knowledge gained during this training would be helpful to me in future.

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SUGGESTIONS

99

SUGGESTIONS
1. The performance appraisal should take place twice in year. 2. The point awarded for the KARs and Managerial dimension should be revised, in order to arouse the satisfaction level of employees. 3. Employees must be given proper knowledge and made aware of PA system in RIL. 4. The performance appraisal process should be shortened. 5. It is also recommended that no poit awarded at the time of initial appraisal should be changed so that it can lead to increase in accountability at in initial appraisal. 6. It is strongly recommended to impart training session on increasing the Executives behavioral and strategic competencies. 7. The system should be made more clear & specific from the support of Human Resource Department through continual improvement.

100

LIMITATIONS

101

LIMITATION

The system covers only executive cadre, so it is limitation in scope. Scope of the study is confined to the areas of RIL, Barabanki & that too with limited sample size of 50.

It was difficult for some executives to fill up the questionnaire themselves. Thus the researcher has to clear all the doubt about the questionnaire that consumed most of the time.

Some executive might have not answered the questions currently because of the busy schedule. They tend to hurry up the talk, which inhibits proper collection of data.

The higher level executives were unavailable for response as they have a very busy schedule.

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BIBLIOGRAPHY

103

BIBLIOGRAPHY

BOOKS

Designing and Managing Human Resource System By: Udai Parek & T.V.Rao.

Personnel Management By: C.B.Mamoria & G.V.Gankar.

REPORT Audit Report of RIL.

MAGAZINE Training Magazine of RIL.

WEBSITE www.ril.com www.performanceappraisal.com

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APPENDIX

105

APPENDIX
RIL: Reliance Industries Limited. Fibres: Fibres are used as a raw material during manufacturing process of yarn. Count: Count shows the thickness of yarn. The yarn become thicker with the lower count no. and thinner with the increasing count no. Lap: It refers to make fibres in the form of sheet by reducing cotton tuffs and extract trash from immature fibres. Sliver: It is thin untwisted rope of fibre. Roving: Those strange fibres that twisted together. Ply Yarn: It may be defined as continuous cylindrical assembly of fibres. Twisted Yarn: When twist insert in ply yarn.

106

ANNEXURE

107

QUESTIONNAIRE
(PERFORMANCE APPRAISAL SYSTEM AT RELIANCE INDUSTRY) Name Designation.. Department.. 1. Are you aware of the current PA SYSTEM of RIL? a. Yes b. No 2. Which tools are used in RIL for performance appraisal? a. Individual Assessment b. Team Assessment c. Performance Diary 3. Which of the following are expressions of productivity? a. Output per worker b. Output relative to the inputs of labor, plant, equipment, and technology

108

c. Output relative to taxes paid 4. For which industry are productivity figures easiest to obtain? a. Mining b. Manufacturing c. Business services 5. Which of the following inputs do you think is the most difficult to measure? a. Material inputs b. Labor input c. Depreciated capital stock 6. Which of the following are key drivers of productivity? a. Investment in machinery and equipment b. Level of education and training of employees c. Increasing the salary of employees 7. Successful appraisal should be? a. Less time consuming b. Less Costly c. Immediately communicated to the Employee

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d. A post Appraisal Interview should be arrange 8. Why Appraisal techniques prove failure? a. Conflicting role of supervisor b. Too many Objective c. Poor Communication d. Difference of Opinion 9. Do you agree that productivity increases through performance appraisal? a. Agree b. Neutral c. Disagree 10. Are you satisfied with the current PA SYSTEM? a. Yes b. No DECLARATION I declare that the information above is true and correct. SIGNATURE DATE

110