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A SYNOPSIS ON

PERFORMANCE APPRAISAL SYSTEM AT ONGC LTD.


In the partial fulfillment of the requirement for The award of the degree of Master of Business Administration (Session 2011- 2013 ) From MAHAMAYA TECHNICAL UNIVERSITY, NOIDA

Submitted To: Mrs. Parul Kumar

Submitted By: Anupriyal Kansal MBA (4


th

Sem.)

Roll No. 1108570016

S.D. COLLEGE OF MANAGEMENT STUDIES, MUZAFFARNAGAR


ACKNOWLEDGEMENT

As a practical fact of my life I underwent my research report at the Corporate office ONGC at Dehradun. The research report was a part of our curriculum, which has brought immense change in my personality as well as understanding the managerial functions. I take this opportunity to sincerely thank to ONGC for providing me an opportunity to undertake the research report in their esteemed organization. I would like to thank my Director Madam,Dr.Veenus Jain,faculty guide Ms. Ritu without whose guidance this research report would have been a distant dream. Lastly and above all, it is only my parents to whom I dedicate my every success achieved by me. They have always supported me without any

PRACHI MITTAL MBA 4th SEM. (0724970036)

PREFACE

The student of management only with theoretical knowledge is like a wandering ship in the ocean, without compass. The exposure to real market scenario gives one the base, practical experience, which serves as a compass in the directionless ship to reach its destination against all odds from all its rivals. ONGC is the leading public sector company in the country, which has been actively The organization role of performance involved in striking a balance between its

commercial activities and corporate social responsibilities. The organization role of appraisal project is selected on the basis of its outreach, importance of the project and nature of the project. I really enjoyed working in the congenial environment of the company office and got to learn hard-core facts of life along with knowledge.

PRACHI MITTAL MBA 4TH SEM. (0724970036)

DECLARATION

I, Prachi Mittal of MBA 4th semester, hereby declare that the project title PERFORMANCE APPRAISAL SYSTEM is completed and submitted under the guidance of Miss.Ritu . This is my original work and not been published or printed for any other purpose.The imperial finding in this project is based on the data collected by me.

PRACHI MITTAL MBA 4TH SEM. `` (0724970036)

Contents
PAGE NO.
1. INTRODUCTION OF TOPIC 2. OBJECTIVES OF THE STUDY 3. SCOPE OF THE STUDY 4. RESEARCH METHODOLOGY 5. USE & IMPORTANCE OF STUDY 6. DATA ANALYSIS & INTERPRETATION 7. FINDINGS 8. CONCLUSION 9. RECOMMENDATIONS 10. LIMITATIONS 11.BIBLIOGRAPHY 12.APPPENDICES 1 41 42 43 46 47 72 73 74 76

INTRODUCTI ON
OF THE

TOPIC

PERFORMANCE APPRAISAL
MEANING
Performance appraisal is a method of evaluating the behavior of employees in the work spot, normally including both the quantitative and qualitative aspects of job performance. Performance here refers to the degree of accomplishment of the tasks that make up an individuals job. It indicates how well an individual is fulfilling the job demands. Often the term is confused with effort, but demands. Often the term is confused with effort, but performance is always measured in terms of results and not efforts. FEATURES OF PERFORMANCE APPRAISAL Performance appraisal is the systematic description of an employees job

relevant strengths and weaknesses.

The basic purpose is to find out how well the employee is performing the job

and establish a plan of improvement.

Appraisals are arranged periodically according to a definite plan.

Performance appraisal is not a job evaluation. Performance appraisal refers

to how well someone is doing the assigned job. Job evaluation determines how much a job is worth to the organization and, therefore, what range of pay should be assigned to job. Performance appraisal is a continuous process in every large scale

organization.

OBJECTIVE
Performance appraisal aims at attaining the different purposes: 1) To create and maintain a satisfactory level of performance. 2) To contribute to the employees growth and development through training, self and management development programs. 3) To help the superior to have proper understanding about their subordinates. 4) To guide the job change with the help to continuous ranking. 5) To facilitate fair and equitable compensation based on Performance. 6) To ensure organizational effectiveness through correcting employee for standard and improved performance, and suggesting the change in employee behavior.

CONTENTS TO BE APPRAISED IN AN EXECUTIVES JOB


Regularity of attendance. Self Expression: Written and oral. Ability to work with others. Leadership Style and Abilities. Initiative. Technical Skill. Technical Ability. Ability to Grasp New Things. Ability to Reason. Originality and Resourcefulness Creative Skills. Areas of Interest. Area of Suitability. Integrity. Capability for Assuming Responsibility. Level of Acceptance by Subordinates. Honesty and Sincerity. Thoroughness in job and Procedures. Knowledge of Suggestions and procedures.

Quality of Suggestions offered for improvement.

PERFORMANCE EVALUATION TO PERFORMANCE ANALYSIS AND DEVELOPMENT


Performance appraisal was formerly used for the purpose of evaluating the employee performance and controlling the performance against the set standards. This technique was used to control the employee ignoring the human aspect. But, with the emergence of human resource concept, organizations are to further improve or develop it. Thus, this technique is now used as an enabling and motivating to improve the performance.

The PERFORMANCE ANALYSIS AND DEVELOPMENT helps the organization to meet the following challenges:

Creates a culture of excellence that inspires every employee. Match organizational objectives to individual aspirations. Equip people with skills necessary to perform their duties.

Clear growth paths for especially talented individuals. Provide new challenges to rejuvenate plateau careers. 5

Forge a partnership with people for managing their careers. Empower employees to take decisions without fear of failing. Embed teamwork in all operational processes. De-bureaucratize the structure for free flows if information. Allow the voices of workers closest to the customer to be heard.

METHODS OF PERFORMANCE APPRAISAL


A: 1) TRADITIONAL METHODS Graphic Rating Scale: Graphic rating scales compare individual performance to an absolute standard. In this method, judgments about performance are recorded on the scale. The appraiser are supplied with printed forms containing a number of objectives, behavior and trait based qualities and characters to be rated like quality and volume of work etc. these character is known by the point given

by rater. The points given by the rater to each character are added up to rind out the performance. Employees are ranked on the basis of total points

assigned to each one of them.

2)

Ranking Method Under this method the employees are ranked from best to worst on

some characteristics. The rater first finds the employee with the lowest performance in that particular job category and rates the former as the best and the latter as the poorest. Then the appraiser selects all the employees in that group and ranks them.

3)

Paired Comparison Method This method is relatively simple. Under this method, the appraiser ranks the employees by comparing one employee with all other employees in the group, one at a time. This method results in each employee being

given a positive comparison total and a certain percentage of total positive evaluation.

4)

Forced Distribution Method Forced distribution method is developed to prevent the appraiser too

high or too low. Under this method, the rater after assigning the points to the performance of each employee has to distribute his ratings in a pattern to conform to normal frequency distribution.

5)

Checklist Method The checklist is simple rating technique in which the supervisor is

given a list of statement or words and asked to check statements representing the characteristics and performance of each employee. There are three types of checklists methods viz. simple checklists, weighted checklist and forced choice method.

6)

Essay Appraisal This method requires the manager to write a short essay describing

each employees performance during the rating period. This format emphasizes evaluation of overall performance based on strengths/ weaknesses of employee performance, rather than specific job dimensions. By asking supervisors to enumerate specific examples of employees behaviors, the essay technique minimizes supervisory bias and halo effect. 7) Group Appraisal Under this method, an employee is appraised by a group of appraisers. This group consists of the immediate supervisor of who have close contact with employee, to other supervisors who supervisor who have close contact

with employee, work , manager or head of the department or manager may be the chairman of the group uses any one or multiple techniques discussed earlier. The immediate supervisor enlightens others member s about the job character, demands, standards of performance. With standards, find out the deviations, discuss the reason therefore, and suggest ways for improvement of 9

performance. 8) Confidential Reports Assessing the employees performance confidentially is a traditional method of performance appraisal. Under this method, superior appraises the performance of his subordinates based on his observation, judgment, and intuitions. The superior keeps his judgment and report confidentially.

B: MODERN METHODS
1) 360 Degree Appraisal In human resources, 360 Degree feedback also known as multi-rater feedback, multi source feedback or multi source assessment is the employee development feedback that comes from all around the employee.

360 refers to the 360 degrees in a circle. The feedback would come from subordinates, peers, and managers in the organizational hierarchy, as well as self- assessment, and in some cases external sources such as customers and suppliers or other interested stakeholders. It may be contrasted with upward feedback by their direct reports, or a traditional performance appraisal, where the employees are most often reviewed only by their manager. 10

The results from 360 Degree feedback are often used by the person receiving the feedback to plan their training and development. The results are also used by some organization for making promotional or pay decisions, which are sometimes called 360-Degree Review.

2)

Assessment Centre This method of appraising was first applied in German Army in 1930.

Later business and industrial houses started using this method. In this approach individuals from various departments are brought together to spend two or three days working on an individual or group assignment similar to the

ones they would be handling when promoted. Observers rank the performance of each and every participant in order of merit. Since assessment centers are basically meant for evaluating the potential of candidates to be considered for promotion, training, or development, they offer an excellent means for conducting evaluation in a objective way.

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3)

Management by Objective:

Management by Objectives (MBO) is a process of agreeing upon objectives within an organization so that management and employees agree to the objectives and understand what they are.Management by objectives term was first popularized by Peter Drucker in 1954 in his book The Practice of Management. It is all too easy for managers to fail to outline, and agree with their employees, what it is that everyone is trying to achieve. MBO substitutes for

good intentions a process that requires rather precise written description of objectives (for the period ahead) and timelines for their monitoring and achievement. The process requires that the manager and the employee agree to what the employee will attempt to achieve in the period ahead, and (importantly) that the employee accepts and agree to the objectives (otherwise commitment will be lacking).

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For example, whatever else a manager and employee may discuss and agree in their regular discussions, let us suppose that they feel that it will be sensible to introduce a key performance indicator to show the development of sales revenue in a part of the firm. Then the manager and the employee need to discuss what is being planned, what the time-schedule is being planned, what the indicator might or might not be. Thereafter the two of them should liaise to ensure that the objective is being attended to and will be delivered on time.

4)

Psychological appraisals Psychological appraisals are conducted to assess the employees potential.

Psychological appraisals consist of a) b) c) d) e) In depth interviews Psychological tests Consultations and discussions with the employee Discussions with superiors sub-ordinates and peers Reviews of other evaluation. 13

Evaluation is conducted in the areas of a) b) c) d) e) f) g) Employees intellectual abilities Emotional stability Motivational responses Reasoning and analytical skills Interpretation and judgment skill Sociability Employees ability to comprehend the vents

h)

Ability to foresee the future.

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USES OF PERFORMANCE APPRAISAL


Performance Improvement: Performance feedback allows the

employee, manager and personnel specialists to intervene with appropriate actions to improve performance.

Compensation Adjustment: Performance evaluation help decision

maker to determine who should receive pay raise.

Placement Decisions: Promotions, transfer, and demotion are usually

based on part or anticipated performance.

Training and development needs: Poor performance may indicate

for retaining. Likewise, good performance may indicate untapped potential that should be developed.

Career planning and development: Performance feedback guides

career decisions about specific career paths one should investigate. 15

Staffing process deficiencies: Good or bad performance implies

strengths or weakness in the personnel departments staffing procedures.

Job Design Errors: Poor performance may be a symptom of ill-

conceived job designs. Appraisals help diagnose of ill-conceived job designs. Appraisals help diagnose these errors.

Equal Employment Opportunity: Accurate performance appraisals

that actually measure job- related performance ensure that internal placement decisions are not discriminatory.

Feedback to Human Resources: Good/ Bad performance throughout

the organization indicates how well the human resource function is performing.

16 LIMITATIONS OF PERFORMANCE APPRAISAL

The major problems in performance appraisal are:

Rating Biases: The problem with subjective measure has the opportunity for bias. The rater bias includes: Halo effect

The error of central tendency The leniency and strictness bias Personal prejudice The Regency Effect Failure of the superior in conducting performance appraisal and post appraisal interviews.

Most part of the appraisal is based on subjectivity. Less reliability and validity of the performance appraisal techniques. Negative rating affects interpersonal relations and industrial relations

systems. Influence of external environmental factors and uncontrollable internal

factors. 17

PERFORMANCE APPRAISAL SYSTEM IN OIL & NATURAL GAS CORPORATIO N LIMITED

PERFORMANCE APPRAISAL Systems

Performance Appraisal Report is an index of an Employee / Executives work performance over a given period of time. It is crucial for his /her career growth as it indicates the Strengths, Weaknesses (if any ), Training needs, nature of job being performed, problems faced in work situation.

OBJECTIVES:
The objectives of the performance appraisal system are: To set Norms and Targets of Work Performance, as well as, to monitor

the Work Progress of Employees.

To facilitate placement of Employees in accordance with their

suitability for different types of Assignments.

To provide an Objective basis for determination of merit, efficiency

and suitability for the purpose of promotion.

To identify areas requiring exposure for Training / Development.

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EVALUATION:
The Performance Appraisal seeks to evaluate:

The Work Performance of an employee on the present job in

relation to the expected levels of performance, both qualitative and quantitative.

The extent of development achieved by the employee during the

period under review.

Evaluation of behavioral Attributes, Attitudes and Abilities.

Evaluation of potentials for assuming higher responsibility.

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COVERAGE:
The Performance Appraisal covers:

i) Performance of an employee during the period from 1st April to 31st March of every year.

ii) All regular employees of the company. There shall, however be five different formats for under-mentioned category of employees.

a. Class III and IV b. E-0. c. E-1to E-3 d. E-4 to E-6 & e. E -7 and above (PESB Format) The appraisal form commonly known as PAR/ACR will have to be filled in respect of all such employees who have served for a period of at least 4 months in the organization during the relevant year.

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PROCEDURE:
PAR /ACR in respect of an employee is required to be assessed / written by levels indicated below:a. By the Reporting Officer under whom employee is working.

b.

By the Reviewing Officer

CLASS III / IV & E-O EMPLOYEES: The reporting officer for writing PAR of an employee of class III / IV and E-O level category will be the executive under whose control the employee is working .The Reviewing Officer will be of one grade above the grade of Reporting Officer.

The PAR in respect of class III and IV employees duly Reviewed / Accepted is maintained at Region / Institutes / Headquarters Group wise in concerned establishment section /PAR sections.

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The PAR in respect of E-0 to E-6 level executives are being maintained in PAR Department at Headquarters of Corporate R & P Division. As regards, E7 and above level, all such reports which are received from Regions / Institutes/ Headquarters are maintained at the Office of Chairman -cum Managing Director.

The Reporting Officer will be the Officer to whom the executive reports for his day-to-day work. Review of the PAR will be done by the executives to whom the Reporting Officer is responsible for his functions. Accepting authority will be the executive higher than the Reviewing Officer at different stages depending upon the nature of the grades, as per Delegation of Powers in PAR Rules

a.

The Performance Appraisal Reports of Executive of E-6 level i.e.

Deputy General Manager and above will be submitted to concern Functional

Director for final review and acceptance.

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b. The Performance Appraisal Reports of Executives up to E-5 level i.e. CM and equivalent will be reviewed by the RD/ ED/ Nominee of the Director concerned. c. The Performance Appraisal Reports of Executives up to E-4 level i.e.

Manager and equivalent would be reviewed by the Functional Head /GM/ GGM not less than E-7

ACCEPTING AUTHORITY:
1. A very senior officer who is designated under the Rules to re-look at

Performance of the Appraise, and review the observations of the first and second Appraisers. He would finally determine and evaluate the performance of the Appraise, In case of disparity between his assessment and that of the first and second Appraisers; he has to record the basis of

his revised assessment. He is expected to record specifically his comments in cases of overall performance grading A+ or D, and low score for personality traits by either of the earlier two Appraisers.

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PERFORMANCE APPRAISAL REPORTS (PAR) OFFICER


The PAR activities are a part of personal function, but the PAR system is essentially based on support of various departments. This demands that senior officer not less than E4 of the personnel department is designated as PAR Officer, who will have responsibility to respond quickly to the enquiry. Each Regional Office / Institute will have a PAR Officer. PAR Officer will report directly to Head of P&A in Regional Offices, who has the over all responsibility of development of human resources. In respect of offices in ONGC HQ in Dehradun and Delhi corporate PAR Officer will function under General Manager (Corporate Recruitment and Promotion).

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ROLE AND RESPONSIBILITY OF THE REPORTING AUTHORITY

The overall performance classification in grades is to be determined by examining both (a) Performance (b) Personality of the appraise. The parameters of this task are listed in Part II of the PAR format in blocks, A, B, C, D, E and F.

In evaluating performance (block A) due consideration is to be given to the bench marks indicated there in and one numerical block only is

to be ticked.

In respect of personality traits, in blocks B, C, D, E and F only one numerical block is to be ticked after considering the bench marks indicated there in.

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The Reporting Authority must offer explanation for his assessment for the special features while ticking the numerical blocks (A to F).

The Grade Classifications with explanation are given in the following pages. The performance and the grade / marks assigned to an Appraise by the Reporting Officer (Ist Appraiser) may be shown to the Appraisee by the Reporting Officer at an informal meeting. To begin with, this system is adopted in respect of Executives of E-5 level and above. To be reviewed after two years

OVERALL ASSESSMENT BY ACCEPTING AUTHORITY


The accepting authority will minutely examine the observations made by the first appraiser and the Reviewing Authority, and also the self appraisal of the appraisee, and after taking due consideration of all the aspects, determine overall grade and also comment on the total performance.

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There should be specific observation about any adverse comment which needs to be communicated to the appraisee. He could also mention personality traits on which appraisee need to be counseled / advised for further improvement. Of his performance and which is not being considered as an adverse entry.

ASSESSMENT SYSTEM:
The two PAR formats for executive belonging to Junior (E1 to E3) and Middle (E4 to E6), reflect both performance and managerial competency components. These have been assigned block numerical values, merely to help in arriving at the final assessment and grading of individuals. The

numerical scored are notional only. The appraisers have to use their judgment in the context of the numerical scores, and the total job situation for deciding the grade of performance.

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I. EXECUTIVE ON DEPUTATION Whenever an ONGC Executive goes out on deputation to another Organization, or vice-versa, it should normally be insisted that the ONGC PAR Formats are used. In case the concerned outside organization does not comply with the directives, the Reporting Officer will record his views on ONGC format alongside the report received form the Organization where the ONGC executive has been deputed.

II. PERFORMANCE APPRAISAL ON TENURE BASIS


A separate form to be designed for such Employees for continuance or otherwise for completion / extension of tenure.

THE GRADING SYSTEM:

The Block numerical values have been assigned to assist the Ist Appraiser in making an overall assessment. The overall total score for determining a grade is merely a guide and the final grade may be at variance with the total score. The second appraiser i.e. the Reviewing Authority and the

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Accepting Authority, have to take an overall view, both of the performance and the personality of the appraise, while determining the FINAL GRADING the Accepting Authority will arrive at the final grading by judiciously weighing the assessment functional discipline of the of Reviewing Authority, who may belong to Appraisee along with the detailed assessment of the Reporting Authority. THE OVERALL RATING IN GRADES IN RESPECT OF APPRAISALS WOULD BE AS UNDER A+ score (95 and above) A score (85 and above but less than 95) A-score (75 and above but less than 85) B+ score (65 and above but less than 75) B score (55 and above les than 65) C score (45 and above les than 55) D score (less then 45)

The final grade given by the Accepting Authority after detailed and due consideration to the rating by the 1st and 2nd Appraisers, will be the DECISIVE GRADE of the Appraisee executive. In case this final rating is different from those of the 1st and 2nd appraiser, adequate justification must be mentioned by the Accepting Authority. There must be adequate explanation by the 1st and 2nd appraisers and the Accepting Authority for any grade 29

assigned to the appraisee. In the absence of adequate explanation the report will be considered incomplete and returned back to the appraisers for conforming to the directives contained in the instructions

THE GRADES: The performance categories are defined as follows EXCEPTIONAL (A+) This is a person whose job performance and personality attributes are clearly remarkable. This person meets or exceeds Companys highest standards and achieves extraordinary results in extraordinary circumstances. A

rare individual who achieves this once in a while.

TOP PERFORMER (A) This is some one whose job performance is noteworthy and he makes valuable contribution the organization. He does not have any negative personality attributes. He is not of the top performers.

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VERY GOOD (B) This is an individual whose performance consistently meets companys expectations. This is a person who is unquestionably above average. ADEQUATE (C) This is a person whose overall performance meets basic requirements of the job and basic targets.

IN-ADEQUATE (D) This is an individual who needs to improve his or her performance and

has not achieved results in spite of guidance and counseling by appraisers. This aspect must be specially stated in the comments / remarks column of the PAR format by the appraisers.

PEN PICTURE
In addition to assigning the grade, the Appraisers must depicts in precise language the dimensions of appraisee total performance, which justifies the grade and mentions his personal attributes.

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MODERATION
This means re-evaluation of the PAR of an Appraisee and the grade awarded by the Accepting Authority to correct any aberrations.

i. REGIONAL OFFICE The Head of the Personnel Department at the Region i.e. GM.(HR) will review the PARs of the Executives up to E-3 level and advise the Regional Director for moderation if required on the basis of analysis of reports. The Regional Director in consultation with the functional head (which has to be

recorded in the PAR) will have Authority to moderate PARs as under: ALL PARs which are graded A+ and D. Cases referred by General Manager (HR) of the Regions, on the basis of monitoring. ii. INSTITUTES The Institutional heads will moderate PARs of executives up to E-3 level in the same manner as Regional Director.

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iii ONGC HEADQUARTERS, DEHRADUN

General Manager (HRG) will conduct an analysis of the PAR Report for all E-4 to E-6 level executives including Regions and Institutions and Approaches. Director (HR) for correcting aberration. Director (HR) on the basis of detailed analysis, may moderate the final grade of individual PARs in consultation with Head of the functional group which has to be duly recorded.

iv EXECUTIVE COMMITTEE OF THE BOARD:The Executive Committee if the Board of Director may moderate the final

grade awarded to an executive belonging to E7 to E9.

GUIDELINE FOR MODERATION A. DESIGNATED AUTHORITY: It is considered difficult to design a moderation system through an empowered Committee for final grade assigned to an Appraisee Executive by the Accepting Authority because of a large variety of specialized cadres. In view of this Designated Authority has been determined, instead of a

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Committee which will be required to seek advice / guidance from Head of Professional Groups for each case, to be duly recorded, in the PAR format itself.

The Designated Authorities would be: a. Asset Manager / Basin Manager / Sub Asset Manager For Executives up to E-3 level working in the institutes. b. c. Heads of Institutes For Executives up to E 3 level working in the institutes. Head Corporate R&P - For Executives in ONGC Headquarters, Dehradun

and Delhi offices (up to E-3 level). d. e. f. Director (HR) For E-4 to E-6 level executives in Projects, Regional Offices, Institutes ONGC Headquarters and Delhi offices Chairman & Managing Director, ONGC for E7 and above Executives.

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B. NORMS The Designated Authority for moderation has special responsibility to ensure that by and large, the final grading of PARs of Executives (E4 to E6) of various disciplines conform to the broad pattern indicated below:Percentage of the total number of executives in the Business Group to be placed in different grades (E4 to E6 only) is indicated below:A+ score (95 and above) A score (85 and above but less that 95) A-score (75 and above but less than 85)

B+ score (65 and above but less than 75) B score (55 and above but less than 65) C score (45 and above but less than 55) D score (less than 45) The above percentage norms will be achieved over a period of three years i.e. there would be gradual reduction each year for executives graded A+ (particularly those in grades E4 and above, which at present is very high). The Moderation authority will be assisted by the PAR monitoring system in 35

data analysis in achieving the above percentage distribution of PARs for a particular year. During the initial years, say up to 1998, the moderation exercise may not conform to above percentages, for each Business Group, but it would be desirable to achieve overall norms for the total strength.

C. ONGC HEAD QUARTERS DEHAR DUN (E-4 E-6- LEVEL): Moderation exercise would be undertaken after detailed analysis of PAR in

respect of Appraisee awarded A +, A and D grades. The basis of analysis would be determined by Director (HR), on the basis of suggestion of Head Corporate R&P.

Instead of formal meeting of members of moderation Committee, the views of concerned functional Director relevant to the appraisee will be secured, and final grading after moderation will be recorded on PAR sheet by Head Corporate R&P as authorized official on behalf of Director (HR).

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The revised Moderation Procedure will be implementing for all Executives (E-1 to E-4) at Assets, Basins, Head Quarter Dehradun and Institution form the year 1998-99. As far as moderation of A PARs is concerned this may be enforced by the various Accepting Authorities as per laid down norms at present. This can be taken u only when the system is fully computerized. D.THE PROPOSED METHODOLOGY FOR MODERATION Head Corporate R&P would list out all A + and D cases only discipline wise

and scale wise and submit original PARs, when at least 80% PARs of that particular disciplines /Scale have been received by him, to the Concerned Functional Director indicating major observations and norms for moderation. Concerned Director will consider all dimensions of Appraisees potential, personality and performance and then rank them (highest-lowest) in respect of all the appraisees of the group graded A+. The reasons may also be recorded in case of down grading and PARs sent back to PAR section at Head Quarters for record. 37

E. DOCUMENTATION OF MODERATION: Asset Manager /Basin Manager/ Sub Asset Manager / Institutional Head / Director (HR) would determine whether he would himself exercise authority to make entries or assign this task to a Designated Authority through an office memorandum.

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INTRODUCTI ON Of e-PAR in ONGC

Introduction of e-PAR in ONGC


With a view to establish a transparent, objective and multidimensional Performance

evaluation system and to introduce performance contracting process in alignment

with industry best practices, a need was felt to implement. Online Performance

Appraisal System in ONGC. EC in its 321st Meeting held on 23.04.08 at Delhi

approved the introduction of the new online PAR system (e-PAR), w.e.f. the appraisal

year 2008-2009.

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Following are the salient features of the e-PAR system: 1. As in the existing system, the new PAR system also has two components, i.e., the

Performance Appraisal component and Potential Appraisal component. The total

marks for both remain the same as before, i.e., 100 for Performance and 50 for

Potential, and so also the mechanism for arriving at the overall weighted score, for

different levels. However in e- PAR system, in addition to making the process fully

online, certain structural changes in assessment of performance have been

incorporated.

2. Performance assessment has been made more objective through Key Result Areas

(KRAs) with Key performance Indicators (KPIs) as applicable specific to any

position / assignment, which are to be defined jointly by appraisee and appraiser, at

the beginning of the year.

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OBJECTIV ES
OF THE

STUDY

OBJECTIVES
1. To study how many employees satisfied with PERFORMANCE APPRAISAL SYSTEM. To Find out; 2. Are employees fully aware of the PERFORMANCE APPRAISAL SYSTEM. 3. Are employees realize the importance of performance appraisal as an effective tool for career development.

SCOPE OF THE STUDY


It creates a culture of excellence that inspires every employee. It matches organisational objectives to individual aspirations. It equip people with skills necessary to perform their duties.It clear growth paths for especially individuals. talented

It empower employees to take decisions without fear of failing.It embeded teamwork in all operational processes. Forge a partnership with people for managing their careers.

RESEARCH METHODOLO GY

RESEARCH METHODOLOGY
Research Design Research design is the conceptual structure within which research should be conducted. A research design specifies the methods and procedure for conducting particular study. The research should specify the approach he intends to use with respect to the proposed

study. The functions of research design are to provide for the collection of relevant evidence with minimal expenditure of effort, time and money. The research design is a pattern or outline of a research projects work. It is a statement of only the essential dements of a study these provides best guidelines the detail of the project study being conducted is descriptive research design.

Descriptive Research A descriptive study is undertaken when the researcher wants to know the characteristics Of certain groups as age, sex, educational level, income, occupation etc. In contrast to exploratory studies, descriptive studies are well structured. Sampling Plan

The samples are taken of selective sample plan. Sampling Size The Sampling Size is 40 and above. Types of Data Collection PRIMARY DATA - The primary data were collected by interaction with various levels of employees belonging to different department and performing various functions. For this a questionnaire was formed through the deep study of subject matter. The whole questionnaire was divided into five categories. After forming the final questionnaire survey was conducted. As a result of this survey primary data was collected which was unorganized and unsystematic so collected which was interpreted in the form of pie charts to have a clear understanding of the data.

SECONDARY DATA - The sources of secondary data were the ONGCs HR manual and the performance appraisal forms used for different levels and also through the earlier studies being done on the related topic as was provided by the high level executives and library supplements.

IMPORTANCE OF THE STUDY

It creates and maintain a satisfactory level of performance. It contribute to the employees growth and development through training, self and management development programs.

It help the superior to have proper understanding about their subordinates. It guide the job change with the help to continuous ranking. It facilitate fair and equitable compensation based on performance. It ensure organization effectiveness through correcting employee for standard and improved performance, and suggesting the change in employee behavior.

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DATA ANALYSIS & INTERPRETATI ON

ASSESSMENT OF FINDINGS
Employee is fully aware of the Performance Appraisal procedure followed in organization. a) d) Strongly Agree Disagree b) e) Agree c) Strongly Disagree Graph No.1 No Idea

9%

5% 9%

5%

Strongly Agree Agree No Idea

72%

Disagree Strongly Disagree

INTERPRETATION - Majority of the employees (72%) are aware of the prevailing Performance Appraisal System in ONGC.

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Objectives of Performance Appraisal System in ONGC is very well known to all Employees. a) d) Strongly Agree Disagree b) e) Agree c) Strongly Disagree Graph No.2 No Idea

Strongly Agree 18% 0% 18% Agree No Idea 9% 55% Disagree Strongly Disagree
INTERPRETATION -Although Majority of employee are aware of the objective of System in ONGC. Still about (18%) of employees need awareness about the PAR System on ONGC.

48

Employees are satisfied with the procedure of Performance Appraisal in ONGC. a) d) Strongly Agree Disagree b) e) Agree c) Strongly Disagree Graph No.3 No Idea

Strongly Agree
18% 0% 5%

Agree No Idea Disagree

18%

59%

Strongly Disagree

INTERPRETATION - Large number of employees are satisfied with the procedure of Performance Appraisal followed in ONGC.

49

Well designed work targets are set by the Employees in consultation with their Head at the beginning of each assessment year. a) d) Strongly Agree Disagree b) e) Agree c) Strongly Disagree Graph No.4 No Idea

Strongly Agree Agree

5% 18% 42% 3% 32%

No Idea Disagree Strongly Disagree

INTERPRETATION -Majority of (42%) employees disagree that the well designed targets are set / provided to them in consultation with their concerned Head at the beginning of assessment year.

50

Employees get proper feedback of their Strength /Weakness through Appraisal. a) d) Strongly Agree Disagree b) e) Agree c) Strongly Disagree Graph No.5 No Idea

Performance

Strongly Agree

32%

5%

9%

Agree No Idea Disagree

18%

36%

Strongly Disagree

INTERPRETATION -The majority of employees feel that they get proper feedback of their Strength/ Weakness through Performance Appraisal. Still about 37% of the employees disagree with this. 51

Performance grading / Ranking is communicated to all Employees. a) d) Strongly Agree Disagree b) e) Agree c) Strongly Disagree No Idea

Graph No.6

Strongly Agree Agree

32%

5%

18% 9%

No Idea Disagree Strongly Disagree

36%

INTERPRETATION -Majority of employee feels that Performance Grading /Ranking is not communicated to all employees. About 23% agree with this statement and 9% of employees do not have idea about this.

52

Seniors provide guidance to career development plans of Employees. a) d) Strongly Agree Disagree b) e) Agree c) Strongly Disagree Graph No.7 No Idea

Strongly Agree

14% 5%

9%

14%

Agree No Idea Disagree

58%

Strongly Disagree

INTERPRETATION - A Large number of employees i.e. about 58% of employee feels that their senior provides guidance in career development plans, but about a quarter of the employee disagree with the statement.

53

Counseling is provided in Performance Appraisal System.

a) d)

Strongly Agree Disagree

b) e)

Agree c) Strongly Disagree Graph No.8

No Idea

Strongly Agree Agree

32%

5%

5%

35%

No Idea Disagree Strongly Disagree

23%

INTERPRETATION - 40% of the employees agrees that counseling to an extent is provided in (PAR) system. About 23% of employees have no idea, whereas 37% disagree with the statement.

54

Suggestions on Self Identified Training needs in PAR are given due consideration.

a) d)

Strongly Agree Disagree

b) e)

Agree c) Strongly Disagree Graph No.9

No Idea

Strongly Agree

17%

1%

5%

Agree No Idea Disagree

27%

50%

Strongly Disagree

INTERPRETATION - More than 50% employees feels that self-identified training given by them in PAR Form are given due consideration. However, about 18% of employees disagree with this statement, whereas 27% employees have no idea about it. 55

Moderation of Performance Assessment Report is a necessity. a) d) Strongly Agree Disagree b) e) Agree c) Strongly Disagree Graph No.10 No Idea

Strongly Agree

5% 27% 5%

5%

Agree No Idea Disagree

58%

Strongly Disagree

INTERPRETATION - Large numbers of employee (58%) are agreeing that moderation is a necessity however considerable number of employees (27%)

disagrees with this fact.

56

Employees are given opportunity of Self appraisal in Performance Appraisal System.

a) Strongly Agree d) Disagree

b) e)

Agree c) Strongly Disagree Graph No.11

No Idea

10% 2% 2%

32%

Strongly Agree Agree No Idea Disagree

54%

Strongly Disagree

INTERPRETATION - Majority of the employees agrees that they receive opportunity of self-appraisal in PAR system.

57

Evaluation of Performance carried out of three levels i.e. Reporting, Reviewing and Accepting Authority is favorable for Employees.

a) d)

Strongly Agree Disagree

b) e)

Agree c) Strongly Disagree Graph No.12

No Idea

2% 3% 1% 30% 64%

Strongly Agree Agree No Idea Disagree Strongly Disagree

INTERPRETATION: Maximum employees (64%) are aware that evaluation of performance is carried out at three levels i.e. Reporting, Reviewing and Accepting Authority.

58

Employee are very much aware of their Competent Reporting, Reviewing and Accepting Authority of PAR. a) d) Strongly Agree Disagree b) e) Agree c) Strongly Disagree Graph No.13 No Idea

Strongly Agree

0% 2% 3%

30%

Agree No Idea Disagree

65%

Strongly Disagree

INTERPRETATION - Majority of employees (95%) are very much aware of their Competent Reporting, Reviewing & Accepting of PAR, only 5% of the employees need to be more aware.

59

Action Plans for improvement of poor performing Employees exists. a) d) Strongly Agree Disagree b) e) Agree c) Strongly Disagree Graph No.14 No Idea

9% 4%

4% 18%

Strongly Agree Agree No Idea Disagree Strongly Disagree

65%

INTERPRETATION - Maximum of employee (83%) agrees that in ONGC action plans exists for improvement of poor Performing Employees.

60

Performance Appraisal System of ONGC helps to measure the Personal traits, Behavioral attributes and Potential of the Employees. a) d) Strongly Agree Disagree b) e) Agree c) Strongly Disagree Graph No.15 No Idea

14% 18%

1%

44%

Strongly Agree Agree No Idea Disagree

23%

Strongly Disagree

INTERPRETATION - About half of the employees i.e. 45% of employee feels that PAR system of ONGC helps to measure Personal traits, Behavioral attributes and Potential of the Employee. Almost an equal number of employees disagree with the statement. 61

360 degree Performance Appraisal System is considered most appropriate for Employees.

a) d)

Strongly Agree Disagree

b) e)

Agree c) Strongly Disagree Graph No.16

No Idea

9%

0%

23%

Strongly Agree Agree No Idea Disagree

36%

32%

Strongly Disagree

INTERPRETATION - A large of the employee (36%) does not have idea about the 360 degree Performance Appraisal System. About 55% of the employees know about 360 degree PAR System and agrees that it is the most appropriate system of appraisal.

62

Performance Appraisal in ONGC helps in improving the performance level of the Employees. a) d) Strongly Agree Disagree b) e) Agree c) Strongly Disagree Graph No.17 No Idea

32%

0%

9%

Strongly Agree Agree No Idea Disagree

18%

41%

Strongly Disagree

INTERPRETATION - 59% employee agrees with the fact that Performance Appraisal in ONGC helps in improving the performance level of the employee. However, another 32% disagree with this idea and about 18% have no idea about this.

63

Annual Performance Appraisal helps employees to realize their Strengths, Weakness and Potential. a) d) Strongly Agree Disagree b) e) Agree c) Strongly Disagree Graph No.18 No Idea

18%

5%

9%

Strongly Agree Agree No Idea Disagree

18% 50%

Strongly Disagree

INTERPRETATION-59% of Employee feel that Annual Performance Appraisal helps Employee to realize his/her Strength/ Weakness & Potential. About 23% disagree with this and 18% of employees have no idea about it.

64

The present Performance Appraisal System in ONGC is effective and needs no change. a) d) Strongly Agree Disagree b) e) Agree c) Strongly Disagree Graph No.19 No Idea

18% 16%

0%

Strongly Agree Agree No Idea Disagree

2%

64%

Strongly Disagree

INTERPRETATION - Majority of employees (64%) agree that present PAR System in ONGC is very much effective & it does not need any change. However, about 34% disagree with the statement and very few have no idea about it.

65

Fairness of Performance Appraisal System cannot be challenged. a) d) Strongly Agree Disagree b) e) Agree c) Strongly Disagree Graph No.20 No Idea

14% 18%

Strongly Agree Agree

4%

No Idea Disagree Strongly Disagree

41% 23%
INTERPRETATION - Employees have diverse opinion about the fairness of Performance Appraisal System in ONGC. Though, about 45% of the employees agree that fairness of PAR System cannot be challenged, about 32% disagree with the statement and 23% have no idea about it.

66

Personal Relations of the Employee with his/her Competent Reporting, Reviewing or Accepting Authority affect the PAR judgment. a) d) Strongly Agree Disagree b) e) Agree c) Strongly Disagree Graph No.21 No Idea

9% 9% 9%

Strongly Agree Agree No Idea Disagree Strongly Disagree

23%

50%

INTERPRETATION. 59% of employees feels that Personal Relation s of the employee with his/her Competent Reporting, Reviewing or Accepting Authority affects the PAR judgment. About 18% disagree with the statement and 23% have no idea about it. 67

Employees are aware of the introduction of new online PAR System (e-PAR) w.e.f. the Appraisal Year 2008-2009. a) d) Strongly Agree Disagree b) e) Agree c) Strongly Disagree Graph No.22 No Idea

Strongly Agree Agree

18% 9%

0%

18%

No Idea Disagree Strongly Disagree

55%
INTERPRETATION - Majority of Employees (73%) are aware of the introduction of new online PAR System (e-PAR) w.e.f. the Appraisal Year 20082009. About 9% disagree with the statement and 18% have no idea about it.

68

Implementation of online PAR System is a major step towards establishing transparency in Evaluation System. a) d) Strongly Agree Disagree b) e) Agree c) Strongly Disagree Graph No.23 No Idea

23%

9%

Strongly Agree Agree

0%

32%

No Idea Disagree Strongly Disagree

36%

INTERPRETATION - More than 65% employee feels that implementation of Online PAR System is a major step towards establishing transparency in Evaluation idea System. About 9% disagree with the statement and 23% have no

about it.

69

Online PAR System will bring efficiency in many HR Processes like Promotions, Employee Development etc. a) d) Strongly Agree Disagree b) e) Agree c) Strongly Disagree Graph No.24 No Idea

0% 9% 0%

Strongly Agree Agree

36%

No Idea Disagree

55%

Strongly Disagree

INTERPRETATION - Majority of employee (91%) feels that Online PAR System will bring efficiency in many HR processes like Promotion, Employee Development etc. About 9% disagree with the statement.

70

Employees are capable of filling Performance Assessment Report through newly introduced online PAR System.

a) d)

Strongly Agree Disagree

b) e)

Agree c) Strongly Disagree Graph No.25

No Idea

10%

10%

Strongly Agree Agree

8% 17%

No Idea Disagree Strongly Disagree

55%

INTERPRETATION -65% of the employees feel that most of the employees are not capable of filling Performance Assessment Report through newly

introduced Online PAR System. Only 18% agree with the statement and 17% have no idea about it.

71

FINDING S

FINDINGS
The employees of ONGC have different view about the Performance Appraisal System in ONGC. Some employees of this organization think that Performance Appraisal is effectively run in this organization but according to the employees that there is a great need to improve the Performance Appraisal System procedure. In the survey I had prepared a questionnaire on which 25 questions based on Performance Appraisal System are mentioned. In the survey I have found that employee of different level have different view about the Performance Appraisal System. All the employees are fully aware of the Performance Appraisal procedure followed in organization and aware about the positive as

well as negative aspect of Performance Appraisal System in ONGC. However, is a need to create awareness among the employees regarding newly introduced online PAR System(e-PAR) w.e.f. theAppraisal Year 2008-2009. 72

RECOMMENDATI ON

RECOMMENDATION In my view following recommendation may be considered while designing the performance appraisal system. 1) The current appraisal system is subjective and is not contributing to achieve desired results. Hence it is suggested that the appraisal system should be more objective and there is a need to develop a well designed instrument for performance and potential appraisal. 2) Proper instruction should be given by the PAR section to the reporting and the accepting officer. 3) The past parameters of PAR should be modified and communicated to all

concerned. This will further facilitate the reporting officer to judge their performance.

4) They favored feedback to be given at the end of appraisal exercise so that he/she can overcome their weakness and can perform their duties in the more responsible manner. 74

5) The question regarding the parameters set in the PAR form satisfy most of the employees but there are some executives who were not satisfies with the parameters set in the PAR form and they suggested that parameters should be set according to the role and assignment.

75

CONCLUSI ON

CONCLUSION
During the course of study I interacted with various levels of employees belonging to different department and performing various function. After forming the final questionnaire survey was conducted. As a result of this survey primary data was collected and the information so collected was complied to give data and make analysis to give suggestion for improvement. . After analysis can be said that employee percentage satisfies with the present performance appraisal system is more than that of dissatisfied employees. Those satisfies with the PAR forms said that ONGC normally takes every step to make changes in the PAR form from time to time to cope up with the changed situation and HR policies of the company as and when it is felt necessary but the disagreeing group suggested that there should be transparency in the system.

73

LIMITATIO N

LIMITATION
1. Some of the employee will not help me in giving the correct information. 2. One of the major limitations is time bound ness. The most important factor which limits the research is the time factor. I have very limited time to complete research. 3. Area bound ness is also one of the major limitation for trainees because we are restricted to a particular area only. 4. Trainees are provided limited resources. 5. The next limitation is some respondents gave biased response for fear of their position in the company. This may influence the results.

BIBLIOGRAP HY

BIBLIOGRAPHY
BOOKS HUMAN RESOURCE MANUAL

HUMAN RESOURCE MANAGEMENT L.M. Prasad

HUMAN RESOURCE MANAGEMENT- P. Subba Rao

INTERNET REFERENCES

www.google.co.in www.ongcreports.net www.ongcindia.com

APPENDIC ES

PERFORMANCE APPRAISAL QUESTIONNAIRE for E 1 to E 6 LEVELS


. LEVEL: __________ DISCIPLINE: __________ LENGTH OF SERVICE: _________ PLEASE GO THROUGH THE QUESTIONNAIRE GIVEN BELOW & TICK ( OPTION YOU FIND MOST APPROPRIATE. SL NO 1. 2. 3. 4. QUESTIONS Employees are fully aware of the Performance Appraisal procedure followed in organization. Objectives of Performance Appraisal System in ONGC are very well known to all Employees. Employees are satisfied with the procedure of Performance Appraisal in ONGC. Well designed work targets are set by the Employees in consultation with their Head at the beginning of each assessment year. Employees get proper feedback of their Strength / Weakness through Performance Appraisal. Performance Grading / Ranking is communicated to all Employees. Seniors provide guidance in career development plans of Employees. Counseling is provided in Performance Appraisal System.
STRONGLY AGREE AGREE NO IDEA

) AGAINST THE

DIS AGREE

STRONGLY DISAGREE

5. 6. 7. 8.

SL NO 9. 10. 11.

QUESTIONS Suggestions on Self Identified Training needs in PAR are given due consideration. Moderation of Performance Assessment Report is a necessity. Employees are given opportunity of Self appraisal in Performance Appraisal System. Evaluation of Performance carried out at three levels i.e. Reporting, Reviewing and Accepting Authority is favorable for Employees. Employees are very much aware of their Competent Reporting, Reviewing and Accepting Authority of PAR. Action Plans for improvement of poor performing Employees exists. Performance Appraisal System of ONGC helps to measure the Personal traits, Behavioral attributes and Potential of the Employees. 360 degree Performance Appraisal System is considered most appropriate for Employees. Performance Appraisal in ONGC helps in improving the performance level of the Employees. Annual Performance Appraisal helps employees to realize their Strengths, Weaknesses and Potential. The present Performance Appraisal System in ONGC is effective and needs no change. Fairness of Performance Appraisal System cannot be challenged.

STRONGLY AGREE

AGREE

NO IDEA

DIS AGREE

STRONGLY DISAGREE

12.

13. 14. 15.

16. 17. 18. 19. 20.

SL NO 21.

QUESTIONS Personal Relations of the Employee with his /her Competent Reporting, Reviewing or Accepting Authority affect the PAR Judgment. Employees are aware of the introduction of new online PAR System (e-PAR) w.e.f. the Appraisal Year 2008-09. Implementation of online PAR System is a major step towards establishing transparency in Evaluation System. Online PAR System will bring efficiency in many HR Processes like Promotions, Employee Development etc. Employees are capable of filling Performance Assessment Report through newly introduced online PAR System.

STRONGLY AGREE

AGREE

NO IDEA

DIS AGREE

STRONGLY DISAGREE

22.

23. 24.

25.