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B.B.A 3RD YEAR Preface

The objective of university education is to teach students learning new things. The fact was realized during the industrial training at reliance To be a B.B.A student is a matter of proud because you are in a field which helps you to develop from a normal human being in to a disciplined and dedicated professional. In this management field, you cant create success if you are not good learner. You need to be a good learner to sharpen your knowledge in the particular field to achieve and attain the desired goals and heights. Mere theoretical knowledge cant help you in any field whether it is management, technology, research or any other field. The only things which can help you are having a sound practical knowledge of the concerned field. As a part of my learning in management field and also a requirement of the M.B.A. program, I have been very fortunate to receive practical knowledge in one of our countrys premiere organizations. I received my training at RIL- VMD and this training has made me clear about the difference between the theoretical knowledge and the practical scenario, making me aware of the importance of practical working conditions. Training provides opportunity to know and learn many aspects or facts the real world and correlate theoretical know. The training provides a new platform for management students to prepare some ground work before actually entering the industry and means way to overcome them.


This project deals with the ongoing activities carried out by RIL, VMD and especially the role of HR Department in the same. It is oblivious that without the due support of staff of reliance limited, Reliance it was not possible to have such a great exposure in one of the landmark company of India. This acknowledgement is a petite Endeavour to thank all those who were directly or indirectly involved in the project and bestowed their kind co-operation for its success. There are times when words cant express thankfulness. A vocational training of this kind has gifted me a great treasure of knowledge and exposure about the activities of various departments at Reliance Industries Ltd. I take this opportunity to thank all those people who have been a guiding force in their own special way for successful completion of project.

I PRAVEEN CHAUHAN & MOIN AHMED, hereby declare that the report for Summer Training Project entitled HR PRACTICES AND PERFORMANCE MANAGEMENT SYSTEM is a result of my own work and my indebtedness to other work publications, references, if any, have been duly acknowledged.

Executive Summary

I have completed my training at learning center (HR) Department. My area of work was on HR Practices and Performance Management System. I undertook a unique, step by step methodology for preparation of the report . Reference book , RIL internal portal,website, and the data available at central stores really help me to make this report valuable. In this report first, I have given the general information regarding the company. It includes the history of company; its disinvestments, milestones, board of directors, quality policy, financial position of the company, and the products. In the second part, I have focused on my core project regarding HR Practices and Performance Management System at RIL (VMD). In the end, the conclusion and the bibliography are given. It may be possible that the data from which the report is made may not appear in the report because some data is confidential for the company.



PARTICULARS GENERAL INFORMATION About the Industry Indian Market About major Companies in the Industry Company Profile 3.1 History 3.2 Reliance Group 3.3 Vision and Mission Statement 3.4 Mile Stone of Company 3.5 SWOT Analysis 3.6 Plants at RIL 3.7 Product And Their Uses 3.8 Infrastructure Human Resource Department HR Practices at RIL-VMD 5.1 Central Time Office 5.2 HR Group-2 5.3 General Administration Department/ Telecommunication / Transport 5.4 SAP Application to HR Services and various Insurance Schemes and policies 5.5 Canteen Services 5.6 Industrial Relation (IR) and Contract labor Management/ Legal 5.7 PMDI / Learning Centre

PAGE No. 9 10

1 2 3

11 13 17 18 20 22 23 24 25

4 5

28 32 36 40 45 47 49

5.8 Fire Services 5.9 Medical Services (OHC) RGSS Security in RIL-VMD 5.10 Reliance School no.1 and no.2 5.11 Pension Cell 5.12 Rural Development Call / Corporate Communication Group / Sports Complex 5.13 Township Administration and Guest Houses PRIMARY STUDY Performance Management System 6.1 Literature Review 6.2 Objectives of the Study Research Methodology 7.1 Research Design 7.2 Source of Data 7.3 Data Collection Method 7.4 Population 7.5 Sampling Method 7.6 Sampling Size 7.7 Date Collection Instrument Data Analysis and Interpretation Findings Limitations of the Study Conclusion and Suggestion

54 56 58 59 62 64

67 75 76 77

8 9 10 11

81 99 100 101

12 13

Annexure Bibliography

103 104



Petrochemical Industry The petrochemical industry in India has been one of the fastest growing industries in the country. Since the beginning, the Indian petrochemical industry has shown an enviable rate of growth. This industry also has immense importance in the growth of economy of the country and the growth and development of manufacturing industry as well. It provides the foundation for manufacturing industries like construction, packaging, pharmaceuticals, agriculture, textiles etc. The Indian petrochemical industry is a highly concentrated one and is oligopolistic in nature. Even a few years back, only four major companies viz. Reliance Industries Ltd (RIL), Indian Petrochemicals Corporation Ltd. (IPCL), Gas Authority of India Ltd. (GAIL) and Haldia Petrochemicals Ltd. (HPL) used to dominate the industry at a large extent. The amalgamation of IPCL with RIL has made the industry more concentrated further, as they jointly account for over 70% of country's total petrochemical capacity. However, the scene is a bit different for the downstream petrochemical sector, which is highly fragmented in nature with over 40 companies exist in the market. Petrochemical Industry IN India At present, there are four PSUs namely, IOC, HPC, BPC and IBP (subsidiary of IOC) marketing petrolium products in the country. In addition, certain private players like Reliance, Essar and Shell have also in marketing rights for transportation fuels. Their marketing presence today, however, is not significant and is limited to about 1370 outlets out of total retail outlet strength of about 29,380 . Some additional players like ONGC, who have also been granted marketing rights for transportation fuels, are in the process of setting up retail outlets to integrate across the entire hydrocarbon value chain. The company wise market share in sales is tabled below:



roleum Corporation Ltd. (HPCL)



Reliance Industries Limited 3.1 History (1969-2013) Indian Petrochemicals Corporation Limited (IPCL), a Company under the Companies Act with Registered Office at Jawaharnagar (near Reliance) in Gujarat was registered on March 22, 1969. It was assigned the responsibility of setting up two upstream mother units and two downstream units near an established public sector refinery, Gujarat Refinery of Indian Oil Corporation on the outskirts of Reliance in Gujarat. The first board meeting of the board of directors of the company was held on March 26, 1969 at New Delhi. The industry was highly capital intensive, involved handling and processing of hazardous material, involved development of nascent markets and managing new technologies with a skill base that was inadequate. Finally, in contrast to the original concept of involving the private sector, the Government allocated these six downstream projects also to IPCL, by early 1971. Apart from the aromatics and the mother cracker, downstream plants spread include polyethylene, polypropylene, acrylic fiber, Linear Alkyl Benzene, butadiene rubber etc. The Reliance complex has now grown to house 21 plants over nearly 500 hectares, which includes Acrylic Esters, Polyvinyl Chloride, Petroleum Resins, etc. Technology management and development has always been an important plank in strategy planning of IPCL. 2002 onwards- Reliance Acquisition The Government of India handed over the management control to Reliance Group on June 4, 2002. Since then the company is being managed by Reliance. The new management team has re-endorsed the companys mission to create value for all the stakeholders. All over efforts are being made to enhance productivity and control cost for superior value addition.


The physical and cultural integration began from word go, both IPCL & RELIANCE started adopted Best Practices from each other. This led to optimal utilization of available resources for enhancing productivity. The net profit for the first financial year (2002-03) under the Reliance management stood at 2.04 billion 90% jump over the previous years profit of INR 1.07 billion. Commenting on result for 2002-03 Mr. Mukesh D. Ambani chairman said We are delighted with the completed turnaround in IPCL; s performance in the very first year of acquisition by reliance. The successful absorption of Reliances best practices by IPCL in all area of operations and the positive impact of measures introduced for cost reduction & productivity and efficiency gains. We have great confidence in the capabilities of IPCL and its people & are confident of further improvement in the companys performance in the future

Reference Information: Name of the company :Reliance Industries Limited Registered Office : 3rd Floor, Maker Chambers IV, 222, Nariman Point, Mumbai-400 021 Reliance Complex : P.O.: Petrochemicals, Dist.: Reliance - 391 346. Tel: 91 - 265 6696000 Website : E Mail : Listed at : Bombay Stock Exchange And National Stock Exchange


3.2 Reliance Group The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is India's largest private sector enterprise, with businesses in the energy and materials value chain. Group's annual revenues are in excess of US$ 44 billion. The flagship company, Reliance Industries Limited, is a Fortune Global 500 company and is the largest private sector company in India. Backward vertical integration has been the cornerstone of the evolution and growth of Reliance. Starting with textiles in the late seventies, Reliance pursued a strategy of backward vertical integration - in polyester, fibre intermediates, plastics, petrochemicals, petroleum refining and oil and gas exploration and production - to be fully integrated along the materials and energy value chain. The Group's activities span exploration and production of oil and gas, petroleum refining and marketing, petrochemicals (polyester, fibre intermediates, plastics and chemicals), textiles, retail and special economic zones. Reliance enjoys global leadership in its businesses, being the largest polyester yarn and fibre producer in the world and among the top five to ten producers in the world in major petrochemical products. Major Group Companies are Reliance Industries Limited (including main subsidiary Reliance Retail limited) and Reliance Industrial Infrastructure Limited. Growth has no limit at reliance.i keep revising my vision. Only When you can dream it, you can do it -Dhirubhai H. Ambani Founder Chairman Reliance Group Dhirubhai Ambani founded Reliance as a textile company and led its evolution as a global leader in the materials and energy value chain businesses. He is credited to have brought about the equity cult in India in the late Seventies and is regarded as an icon for enterprise in India. He epitomized the spirit 'dare to dream and learn to excel. The Reliance Group is a living testimony to his indomitable will, single-minded dedication and an unrelenting commitment to his goals.


Board of Directors of Reliance Industries Limited

Mukesh D. Ambani Chairman & Managing Director Nikhil R. Meswani Executive Director Hital R. Meswani Executive Director H.S.Kohli Executive Director

Ramniklal H. Ambani

Mansingh L. Bhakta

Yogendra P. Trivedi

Dr. D. V. Kapur

M. P. Modi

S. Venkitaramanan

Prof. Ashok Misra

Prof. Dipak C Jain

Dr. Raghunath Anant Mashelkar


Corporate Governance: Reliance is in the forefront of implementation of Corporate Governance best practices Corporate Governance at Reliance is based on the following main principles: discharge its responsibilities and duties. nformation to the Board and its Committees to enable them to discharge their functions effectively.

mpliance with all the applicable rules and regulations.

l information concerning the Company to all stakeholders.

Commitments to the Society: They commit about:



President Senior Vice President Vice President General Manager

Senior Manager





3.3 Vision and Mission Statement

QUALITY POLICY RIL is committed to meeting Customers requirements through Continual Improvement of our quality Management systems. Reliance shall Sustain organizational excellence Through visionary leadership and innovative efforts.

CORPORATE VALUES Integrity, respect for people, unity of purpose, outside- in focus, agility and innovation. CORPORATE VISION Be a globally preferred business associate with responsible concern for ecology, society and stakeholders.

CORPORATE MISSION Continuously innovative to remain partners in human progress by harnessing science and technology in the petrochemicals domain. Starting as a small textile company, Reliance has in its journey crossed several milestones to become a fortune 500 company in less than 3 decades. Reliance continues to cross newer & bigger milestone in its Quest for What is known as Growth is life.


3.4 Milestone of Company

Issue Closed on earliest closing day, October 24, 1986. Received INR 960 million. Oct 6, 1989 Mr. Rajiv Gandhi, Prime Minister of India laid the foundation stone for the petrochemicals and Chlor-Alkali complex at Dahej in Gujarat. Jun 3, 1991 IPCL enters into a joint venture with General Electric Plastic, BV Netherlands, making it the first time a multinational ties up with a Public Sector unit from India, with equal equity Holdings Mar 23, 1992 The first lot of shares sold by government of India were Transferred. Unit Trust of India with others became the first

Set non-government shareholders in IPCL. Nov ,1996 IPCL received the Sword of Honor from the British Safety Council for its commitment to adopting high standards of Safety in all its units. Mar 26, 1999 IPCL became the largest producer of polyethylene with


divestment of 25 % Equity of IPCL by GOI. The Govt of India decided to bifurcate IPCL by selling Reliance Complex to IOCL. May 28, 2002 Government of India accepted bid by Reliance

Nov 18, 2000

Petroinvestment Ltd., as it was the best bid received by the Government. Jun 4, 2002 Reliance Petroinvestments Ltd. paid Rs. 1491 crores to GOI, Mr. Mukesh D. Ambani was nominated as Chairman of the IPCL by the winning bidder 2004 Amendment Agreement between the Government and the Strategy Partner, Reliance Petroinvestments Limited, A Reliance group company. 2004 Government of India disinvestment its balance shareholding Government of India withdrew its nominee directors 2006 Amalgamation of six polyester companys i.e. Apollo Fibers Limited, Central India Polyesters Limited, Recron Synthetics Limited and Silvassa Industries Private Limited with Indian Petrochemicals Corporation Limited.


April 18, 2007 Sep 21, 2008 2008

Merger of IPCL in to Reliance of Group of Industry Reliance Industries Commences Production in KG-D6 Block. RIL signed MOU with GAIL (INDIA) Ltd. to explore

Opportunities of setting of petrochemical plants. Apr 23 , 2009 RPL Refinery and KG D6 Commissioned

3.5 SWOT Analysis





- subject to cyclic. ces for feed stocks




3.6 Plants At RIL-VMD

Commissioned Year Naphtha LDPE Mono Ethylene Glycol / Ethylene Oxide Butadiene Extraction Polybutadiene Rubber Plant I Polybutadiene Rubber Plant II Benzene Extraction LAB Acrylonitrile Plant Acrylate VCM / PVC Polypropylene Copolymer Plant Acrylic Fiber Bi-component Plant 1979 1979 1979 1979 1979 1996 1979 1979 1979 1983 1984 1988 1989



Poly Propylene:

Low Density Poly Ethylene (LDPE):






MW from each state grid



For RIL - VMD its real wealth is over 4100 employees. The Corporation follows a planned approach to human resources development. Training of manpower happens to be an integral component of the development strategy. Today VMD possesses one of the best pools of talents in the petrochemical industry in India. Well maintained residential complexes, schools, recreational centers, transport, medical and other such facilities ensure a better quality of life for its employees, paving way for healthier industrial relations. Other aspects of its employee related programs include: Training programs conducted on regular basis. Nearly a third of its employees receive training each year. The programs are conducted at three centers: Petrochemical Management Development Institute (PMDI), Reliance, and at training centers at Reliance, Nagothane and Dahej. HR DEPARTMENTS OF RIL - VMD HR SECTION:










5.1 Central Time Office (CTO) Date: 09/06/2011 Person Visited: Sh Jatin Trivedi Objective:

Information about CTO:

and payroll, changing shifts, leave, records with the use of SAP Software. the plants. They have to punch at the punching machine at the main gate.


The every employee is provided identification card for punch. They are supposed to do so, at their particular department and plant. ier each plant had one time office. The card system was there at that time. But after the merge with the Reliance Group, RIL (VMD) is having only one time office. y for the gate and who are actually not employees of the company like Vocational Trainees, Visitors, and Contract Labour. RGSS system is for the security purpose adopted by the company.

Groups (Shifts) G A B C

Name of Shift General Shift First Shift Second Shift Night Shift

Allotted Time 8:00 A.M. to 5:00 P.M. 6:00 P.M. to 2:00 P.M. 2:00 P.M. to 10:00 P.M. 10:00 P.M. to 6:00 P.M.

Functions of CTO:


Types of Leaves:

Leaves CL (Casual Leave) SL (Sick Leave) PL (Privilege Leave) PH (Festival Leave) RH (Restricted Holiday)

Supervisory 8 10 24 10 2

Non Supervisory 10 10 30 10 2

Supervisory Employees:

Non Supervisory Employees:


Attendance Query:

employees can make their attendance from this department.

Leave Application:

ployees are paid over time.


5.2 HR Group-2 Date: 13/06/2011 Person Visited: Sh Rajesh Pandya Objective: 2 Information about HR Group 2: service, HR is divided into 3 groups. Each group looks after 4 5 plants. The working of the entire 3 HR group is same. performance ensure that their actions connected to the stated goals of the company and drives business growth. The first and foremost aim is customer satisfaction and in RIL, VMD, employees themselves are the customers of the company, so to satisfy them is an important aspect. en the Management and Employees. At the time of IPCL, it was decentralized, then after the merger with Reliance, it was centralized, but now its decentralized again.

Function of HRC:


ESS and SAP related problems: name, address, nominees, achievements, records, etc. ral Establishment to make any necessary changes in the employees ESS.

Disciplinary Procedure:

Emergency Services:


case of accident. the premises, that information is also sent to the management. drill, HRC have to be present at the place.

Welfare Services: services like transportation, LTC, various allowances, etc. are being decided by HRC. that facility. voluntary service being provided by an agency.

Performance Appraisal: Non supervisory Employees:

g to such employees who have scored poor and try to solve their problems and help to correct their next ACR


Supervisory Employees:

and target.

and if it is helpful for the management, the employee is motivated by monetary as non-monetary measures.


5.3 General Administration Department/ Telecommunication / Transport

Date: 15/06/2011 Person Visited: Sh Kunal Arora, Sh Mahendra Barot, Sh BK Patel Objective:

Information about General Administration Department:

1. Welfare 2. Security 3. Printing 4. Holiday home 5. Repairs and maintenance 6. Transport


Welfare Section:




Tentative Distribution August

Uniforms Man : 4 shirts and 3 trousers

Every year

All employees including trainees and retainers

Female : 4 kurtas, 3 pajamas and 4 sarees Safety shoes Every year All employees August

Before the recent settlement of RIL, VMD the employees are also provided sweater, aprons, Turkish towels, soap and napkins, steel SS mugs.



Security Section:


Printing Section: section

er. Holiday Home Section:


Repairs and Maintenance:


Transport Section: re the recent settlement in RIL, VMD the bus facility was provided to all the supervisory and non supervisory employees. s facility is provided. There are total 13 buses provided to both the medium yearly. But as the students decreased, the number of buses also decreased.


5.4 SAP Application to HR Services and various Insurance Schemes and policies Date: 16/06/2011 Person Visited: Sh Arjun Rajput, Sh MM Devasia Objective:

Information about various Insurance Schemes and Policies: 1. Group Personal Accident Policies: covered under this policy.

premium will be counted. cident should be given within 7 days to the insurance company.

2. Workman Compensation Policy :

own Workers Compensation Law and Management Commission and some run their own insurance programs ered but some senior executive are also covered on the contract bases.


3. Mediclaim Policy :


i. Executives and Manager Family :


ii. Leader Family :

2697 and total policy amount is Rs. 2 lakhs.

4. Mediclaim Policy for VRS employees :



5. Post Retirement Mediclaim Policy :

6. Group Term Assurance Policy : policy.

Supervisory Employees:

GTPL (Group Term Life Insurance Policy):

7. Group Saving Linked Insurance Policy :


A Group: upto Rs. 1, 50,000. B Group: upto Rs. 1, 00,000. C Group: upto Rs. 60,000. Insurance amount + Savings + Accrued interest of savings. Savings + Accrued interest of savings. the company the whole policies are issued. That means, here the policy holder is not an individual but the holder is the company itself, i.e. RIL.

DHS (Dedicated Health Services):


About SAP:

0 companies in more than 90 countries worldwide.


SAP Benefits:

Personal Actions: There are many information types for storing data in tables like:

Employee department data


5.5 Canteen Services Date: 17/06/2011 Person Visited: Sh D.K. Srivastava Objective:

Information about Canteen Services:

provision and maintenance of canteen for employees. in respect of construction, accommodation, furniture and other equipments of the canteen.

Canteen facilities at RIL, VMD:


g halls are available for the lunch and dinner.


t about the quality of food.

committee which includes :

od related garbage is dumped.


5.6 Industrial Relation (IR) and Contract labor Management/ Legal

Date: 18/06/2011 Person Visited: Sh Shailesh Parikh Objective:

Information about IR and Contract Labour Management/Legal:

trade union so that production activities go on smoothly.

ine approach.

Legal: o internal department.


s with regard to various acts like :


5.7 PMDI / Learning Centre Date: 20/06/2011 Person Visited: Sh B.P. Shah Objective:

Information about Learning Center:

1400 800 nskilled employees 200

Process for the training:

Identify the need of Non Supervisory employees:


approved by DD. h the president and foreman.


Each and every thing related to particular activity has to be represented in written form. Its main objective is that anyone can easily understand it. provide proper infrastructure facilities on proper time.

Validation/Examination: e respectively before and after training.

HSEF Training:


Behavioural Training:

Apprentice Training:

Vocational Training (VT):

PMDI (Petrochemicals Management Development Institute):

to the supervisory employees.

Giving training to the supervisory employees:


ILNA-Individual Learning Need Assessment SDM-Self Development Module

Engagement of FOPEs:

, Chemical, Electrical, Process as well as HR, Finance and Marketing.

t, viva and presentation are taken as their validation part.

Data Management:

also done here.

Industrial Visit: e responsibilities of PMDI is to arrange and coordinate various industrial trips and to get oriented and acquaint them with various petrochemical products through plant and class room training.


Library Management:


5.8 Fire Services Date: 22/06/2011 Person Visited: Sh Suddha Roy Objective:

Information about Fire Services:

in the fire station.

the fire fighters come to know that there is a fire emergency in the complex.

an be extinguished : Dry Chemical Powder


and DP is used.

essure is increased, up to 17 kg pressure is maintained.

dian Oil Corporation). In case of any emergency, they are ready to help each other.

keeping ready.


5.9 Medical Services (OHC) RGSS Security in RIL-VMD Date: 24/06/2011 Person Visited: Dr. M.G. Aterkar Objective:

Information about RGSS (Reliance Group Security System) Security:

They issue 2 different passes:

Functions of RGSS:


ntrol room is also there in security department for the coordination between various sights of plant area.


Serviceman from the army, NCC certification and other related qualification is required for that.

Information about Medical Services Occupational Health Service (OHC)



specialist intervention or opinion is required. Ray department with latest equipment to carry out check up.


.10 Reliance School no.1 and no.2 Date: 25/06/2011 Person Visited: M.K. Pal

Information about Reliance School:

12 commerce and science. 5 teachers on the permanent basis and 25 teachers on contract basis.

one clerical staff for administration.

no canteen facility provided by the company in school but it is on contract basis.

llowed to take admission.



5.11 Pension Cell Date: 27/06/2011 Person Visited: Sh Sudhir Shah


Information about Pension Cell:

ding pension same as before at the time of IPCL the employee. I.e. 8% PF and they also cut their EPF as their pension Rs. 541 per month.


Reduce Pension

re than 10 years.

Super Annotation Pension:

cut from their pension.

Widow Pension:


pension of widow pension, i.e. Rs. 551 children are paid till they become 25 years old.


Nominee / Orphan Pension:

Withdrawal Benefits: employee worked at the organization for less than 10 years, then he is paid this pension.

Scheme Certificate: years and applied for resign or took VRS, he is provided certificate till he becomes 50 years old.


5.12 Rural Development Call / Corporate Communication Group / Sports Complex

Date: 28/06/2011 Person Visited: Mr. Vinod Dharmani


Information about Township: commitment towards the particular community and rural development activity for those communities which had lost their agricultural land and those who have no other resource to sustain their life. on like awareness program, women development, health and sanitation, education, employment and infrastructure, etc. Various activities such as agriculture, education, employment, women development, health and sanitation, help to handicapped, etc. are being carried out in the interest of rural development and country at large.

Program Conducted: young and women of rural area. above activities. ch 40 womens were


benefited from both the villages. were trained and given proper guidance about traffic rules. to farmers of Koyali village. 250 saplings were provided. eld with the cooperation of gram technology (Government of Gujarat), in which 20 youths were trained.

Sports Complex:

ent. each other.


scholarships, playing kits, etc.


5.13 Township Administration and Guest Houses

Date: 29/06/2011 Person Visited: Mr. Jayaram

Information about Township Administration:

o live on the basis of rent.

provided, but now management is thinking to restart it again. the swimming pool facility. partment.

approval from site president or any higher authority, then he is provided the housing facility.

township for employees hailing from different location of the country.


community hall, provision store, etc.

Guest House:

low 18 years of age :


Medical Unit at Township:

Outsiders are also given the services. -Ray, ECG and laboratory for the tests and physiotherapy centre for treatment are provided. ds and fully technologically well equipped operation theatre for common surgery.

e in a year is done. -keeping, cleaning of the roads, etc. was maintained by medical unit earlier.

floating scheme.

re 10 doctors in RIL (VMD); 6 at plant site and 4 at township. interconnected. hazardous area is done twice a year and those belonging to less hazardous area are done once a year.


6. PERFORMANCE MANAGEMENT SYSTEM:Performance management system is defined as a systematic approach to improving and developing the performance and competence of individuals and teams in order to increase overall organizational effectiveness. PMS is a strategic and integrated process. It is strategic in the sense that it is concerned with broader issues facing the business if it is to function effectively in its environment and with the general direction in which it tends to go to achieve longer-term goals. It is integrated in two senses: (1) Vertical Integration linking or aligning business, team and individual objectives and core competence. (2) Horizontal Integration - linking different aspects of HRM, especially organizational development, HRD and reward, to achieve a coherent approach to the management, development and motivation of people. It can be described as: A developmental process which provides for the joint agreement of development and improvement needs and empowers people to take control over their own performance and development with the guidance and support of their managers and the organization A holistic process owned and driven by line management in which performance management is "bundled" with other HR processes in order to improve organizational effectiveness A process in the sense that it is about how managers, individuals and teams behave when they work together to achieve improvement and develop competence rather than a bureaucratic system

Aims of Performance Management System The following two simple propositions provide the foundation upon which performance management is built. 1. When people (individuals and teams) know and understand what is expected of them, and have taken part in


forming these expectations, they will use their best endeavors to meet them. 2. The capacity to meet expectations depends on the levels of capability that can be achieved by individuals and teams, the level of support they are given by management, and the processes, systems and resources made available to them by the organization.

Performance management is very much concerned with interrelationships - between managers and individuals, between managers and teams, between members of teams, and between individuals and groups and other stakeholders. These relationships are reciprocal and performance management aims to improve their quality. WHAT IS PERFORMANCE MANAGEMENT SYSTEM? Performance management system is defined as the process of assessing the performance and progress of an employee or a group of employees on a given job and his/her potential for future development. It consists of all formal procedures used in working organizations and potential of employees. According to Flippo, Performance management system is the systematic, periodic and an important rating of an employees excellence in matters pertaining to his present job and his potential for a better job. CHARACTERSTICS 1. Performance management system is a process. 2. It is the systematic examination of the strengths and weakness of an employee in terms of his job. 3. It is scientific and objective study. Formal procedures are used in the study. 4. It is an ongoing and continuous process wherein the evaluations are arranged periodically according to a definite plan. 5. The main purpose of Performance management system is to secure information necessary for making objective and correct decision an employee.


PROCESS The process of performance management system: establishing performance standards

Corporate Mission and Strategic Goals activities in the sequence are aligned to those goals and contribute to their achievement. Business and Departmental Plans and Goals flows directly from the corporate goals but some iteration may take place so that departmental views about what can be achieved are taken into account before finalizing the business goals. Performance and Development Agreement defines the work to be done, the results to be attained, the performance standards to be achieved and the competence levels required


Corporate Mission And Strategic Goal

Business And Departmental Plans And Goal

Competence Requirements

Performance and Development Agreement

Performance Standards

Competence evidence

Performance and development plan

Performance Measures

Action-Work Development And support

Continuous Monitoring And Feedback

Financial Reward


Formal Review, Feedback & Joint assessment


Action - Work, Development and Support work- and people-related activity and focuses on what has to be done, how it is done and what is achieved. But it is equally concerned with developing people - helping them to learn - and providing them with the support they need to do well, now and in the future. will involve continuous monitoring and feedback and formal reviews as described below. Continuous Monitoring and Feedback managing and developing performance standards which reflects normal good practices of direction-setting, monitoring and measuring

Interim informal reviews can be held as required - monthly, quarterly, etc. They can be used to provide more structured feedback and, importantly, to revise objectives and plans in response to changing circumstances. Formal Review and Feedback frequently - twice a year or even quarterly - in fast-moving environments. They provide an occasion for structured feedback and ret1ection. The feedback will summarize and draw conclusions from what has been happening since the last review but it will be based on events and observations rather than opinion. These should have been raised at the time - there should not be any surprises during the formal discussion. But the conversation - and that is what it should be - will concentrate on the analysis and review of the significant points emerging from the period under consideration. It will recognize successes and identify things that have not gone according to plan in order to learn lessons for the future. It should be a joint affair - both parties are involved. So there may well be an element of selfassessment by the individual. oing. It is concrete, not abstract, and it


allows managers and individuals together to take a positive look at how performance can become even better in the future and how any problems in achieving objectives or meeting standards can be resolved by the Individual alone or jointly by the individual and the manager - for example by coaching or arranging training. How Does Performance Management Work? Performance management is a process, not an event. It operates as a continuous cycle.


Performance mangement Cycle



The performance management cycle: The performance management processes taking place in this cycle are: Plan: - Agreeing objectives, standards and competence requirements; identifying the required behaviors; producing plans expressed in performance agreements for meeting objectives and improving performance; preparing personal development plans to enhance knowledge and skills and reinforce the desired behaviors. Act: - Carrying out the work required achieving objectives by reference to the plans and in response to new demands.


Monitor: - Checking on progress in achieving objectives and responding to new demands; treating performance management as a continuous process - ' managing performance all the year round' - rather than an annual appraisal event. Review: - A 'stocktaking' discussion of progress and achievements held in a review meeting and identifying where action is required to develop. Benefits of Performance management system:

Facilitates assessment and agreement of training needs.

major role in organizational training needs assessment and analysis. resolving confusions and misunderstandings. unicating the organizations philosophies, values, aims, strategies, priorities, etc among its employees.

LIMITATIONS: 1. Errors in Rating 2. Lack of reliability 3. Negative approach 4. Multiple Objectives 5. Lack of knowledge 6. Biasness in rating


KEY CONCEPTS IN PMS: In order to understand the Performance Management System at RIL (VMD), some concepts need to be explained which play a very important role in using the PMS successfully. They are: KRAS (KEY RESULT AREAS): The performance of an employee is largely dependent on the KRA score achieved by the employee during that particular year. Thus, it is necessary to answer a few basic questions i.e. does an employee write down his KRAs for a particular financial year?

BEHAVIORAL TRAITS: Some of the qualitative aspects of an employees performance combined with the general behavioral traits displayed by the employee during a year constitutes his behavior traits. An employee is assigned the rating on the basis of the intensity of the behavior displayed by him. They play a very important role in the deciding the final performance rating for an employee as is even capable of shifting the rating one level upwards/downwards. THE PERFORMANCE RATING PROCESS: The rating process tries to explain the four different types of rating that an employee can achieve i.e. excellent, very good, good, average, and poor. It also explains the criteria, which is considered for awarding any of these ratings to the employee. PROMOTION AND RATING DISTRIBUTION GUIDELINES: The promotion and normal distribution guidelines provide the framework within which the performance appraisal process has to work. It is very important that the HR department pays due attention to these guidelines while preparing the bell curves for various functions and the consolidated bell curve for all the functions. These guidelines also help in deciding upon the promotion cases in a year.


6.1 LITERATURE REVIEW 1. ARAVINTH SUBRAMANIUM (WIPRO) INDIA EMPLOYEES perception towards the performance management system A study was conduct by Mr. ARAVINTH SUBRAMANIUM on 50 workers of Wipro the sample was selected from the entire department by stratified random sampling. From the data collected was revealed that majority of the respondent were young. i.e. 28 out of 50 respondents. Respondents felt that existing PMS system was very effective. 88% of the respondents needed no change in the system while 76% of respondents said that performance related pay was done in their organization. 82% of the employees felt that PMS was helpful in motivating them and 78% of the respondents felt that the existing PMS helped them to define their goals and achieve them. 2. VINITA SHINDE (1998) A study on performance management system in ABB. A study was conducted on the above said topic by Ms Vinita Shinde. Study was conducted on permanent workers from all departments by the method of stratified random sampling method out of 4290 workers a sample of 60 workers was selected. The studies revealed that majority of the respondents were graduate. 78% of the respondents felt that performance appraisal is a key feature in PMS. 74% of the respondents said they were satisfied by current PMS and 72% of the respondents felt that PMS is about individual progress. While 76% of the respondents denied the fact that PMS is about making people work harder.

3. AMIT SHRIVASTAV (2002) A study on performance management system in SG Pharmaceuticals Ltd. Baroda. From the study it was revealed that 72% of the respondents were falling in the age group of 31-50 years. From the sampled data it was found that 54 respondents were graduates. 78% of the employees were aware of the current PMS in the origination. 45% respondents remained neutral about the fact that the PMS creates an environment of competition. A majority of 68% of respondents felt that PMS motivated them. A majority of 72% of respondents


started that was helpful for long run period. 76% of the respondents said current PMS was understandable. 78% of the respondents said that PMS helped them for personal development. 88% of the respondents were aware of the performance appraisal system.

6.2. OBJECTIVES OF STUDY To carry out the study of RIL LTD, following objectives are framed: 1. Identification of general HR practices followed in RIL LTD. 2. Identification of the technique of performance appraisal followed in RIL LTD 3. Employee attitude towards the present performance management system. 4. Review of the current performance management system in order to a. Enhance productivity b. Attain global standards 5. To provide suggestions & recommendations from the study conducted.


7.1 RESEARCH DESIGN: The formidable problem that follows the task of defining the research problem is the preparation for the design of project, popularly known as the research design. Decision regarding what, where, how much, by what mean concerning an inquiry or a research study constitute the research design. A research design is the conceptual structure within which research is conducted; it considers the blueprint for the collection, measurement & analysis of data. There are three type of Research Design: 1. Descriptive 2. Exploratory 3. Causal I have use DESCRIPTIVE RESIGN infomation regarding the company.

7.2 SOURCE OF DATA: Primary data those data which are collected for the first time. The first hand data or information is primary data. They are not prepared data but they are visual and are the one which are not at all collected earlier. Primary Data:1. Personal Interview:For the collection of data for this project, I had a verbal conversation with the human resource manager. He also gave me the General Background and the related information about RIL LTD. 2. Observation:For gathering more information, I observe the work area of the company to know about the companys profile. I have also visited various departments and saw different departmental staff at work. 3. Questionnaire:-


For the collection of more information, I have used another method. I prepared a questionnaire and used it to collect relevant information and other important data from different departmental staff and employees.

Secondary Data:Secondary data are those which are gathered from the published company profile. I referred to the website RIL as well. The website if the company is: I also referred to same published magazines, files of the company and annual report of the company. These materials provided me a lot of information.

7.3 DATA COLLECTION METHOD: These data have been collected by the structured questionnaire. The secondary data are readily available from the published materials from historical records. There are two types of data that are available for the research purpose viz., the primary data and secondary data. (I) Primary Data: Primary data was collected through questionnaire schedules by personal contact with employees. (ii) Secondary Data: Secondary data was collected from 1. Company literature 2. Internet.

7.4 POPULATION: All Employees of RIL-VMD LTD.


7.5 SAMPLING METHOD: Sampling Method means, The method which we are using for collecting data. There are two types of Sampling Method: 1. Probability Sampling: Probability is that technique which we use in which every elements of population have probably equal chance has being selected as sample 2. Non-Probability Sampling Method: Non-Probability is that technique which we use in which every elements of population have no probably equal chance has being selected as sample. There are 4 types in Non-Sampling Method: I. Convenience II. Judgmental III. Quota IV. Snowball I have used NON-PROBABILITY SAMLING METHOD through CONVENIENCE.

7.6 SAMPLING SIZE: The researcher has chosen RIL on the topic of Performance Management System, and the researcher has selected sample of 30 respondents.

7.7 DATA COLLECTION INSTRUMENT: I. Basic Information Survey II. Personal Retail I have used Basic Information Survey as tool of collecting Data Collection Information for PMS in RIL-VMD


Study Approach: It was based on descriptive study. The survey has been conducted on the following guidelines:

charts & tables.



PMS is Effective Method

Yes No Total

No. Of Respondents
26 4 30

86.67% 13.33% 100%

The above chart and table shows the fact that majority of respondents, 86.67% think that PMS is an effective method of performance appraisal in their organization. Rest 13.33% respondents do have a negative opinion. So, it can be concluded that, majority of the respondents here believe that performance appraisal is much effective method of performance appraisal.


Encourage employees toward achievement of organizational goal

Strongly Agree Agree Neutral Disagree Strongly Disagree Total

No. Of Respondents
1 22 3 3 1 30

3.33% 73.33% 10% 10% 3.33% 100%

The above chart and table shows the fact that majority of respondents, 73.33% agree to the fact that PMS encourage them towards achievement of organizational goals. Only 3.33% strongly agree and strong disagree while rest 10% are neutral and disagree. So, it can be concluded that employees here do believe that PMS encourage them towards achievement of organizational goals, but there are neutral and disagreed opinion also.


Respondents understanding about PMS

Performance Appraisal Regular meeting with managers Setting objectives Pay based on performance Total

No. Of Respondents
12 0 12 6 30

40% 0% 40% 20% 100%

The above chart and table shows the fact that majority of respondents, 40% believe that PMS means performance appraisal and setting objectives of the organization while rest 20% believe that it means pay based on performance.


PMS is transparent enough

Strongly Agree Agree Neutral Disagree Strongly Disagree Total

No. Of Respondents
1 5 5 18 1 30

3.33% 16.67% 16.67% 33.33% 3.33% 100%

The above chart and table shows the fact that 33.33% respondents disagree to the fact that PMS is transparent system in their organization. Only around 17% agree to this and around 17% are also neutral. So, it can be concluded that employees here do believe that PMS is not transparent enough but there are neutral and agreed opinion also.


Important aspect of PMS is setting goals

Strongly Agree Agree Neutral Disagree Strongly Disagree Total

No. Of Respondents
1 22 3 2 1 30

3.33% 73.33% 10% 6.67% 3.33% 100%

The above chart and table shows the fact that majority of respondents, 80% agree to the fact that important aspect of PMS is setting of organizational goals. 3.33% strongly agree and strong disagree while 6.67% are neutral and rest 10% disagree. So, it can be concluded that employees here do believe that important aspect of PMS is goal setting.


Awareness about functioning OF PMS

Very Poor Poor Average Good Very Good Total

No. Of Respondents
0 1 4 17 8 30

0% 3.33% 13.33% 56.66% 26.67% 100%

The above chart and table shows the fact that majority of respondents, 56% have a good awareness about the functioning of PMS while 26.67% have a very good awareness regarding functioning of PMS. 13.33% have average opinion and rest 3.33% are unaware about PMS. So, it can be concluded that employees here do have a good awareness regarding functioning of PMS.


Effectiveness of PMS is fulfilling employees personal need

Very Poor Poor Average Good Very Good Total

No. Of Respondents
1 7 18 3 1 30

3.33% 23.33% 60% 10% 3.33% 100%

The above chart and table shows the fact that majority of respondents, 60% have average opinion regarding effectiveness of PMS in fulfilling their personal needs. Around 23% respondents have a negative opinion and around 10% have a good opinion. So, it can be concluded that employees here on an average believe that PMS is effective in fulfilling their personal needs.


Process of PMS easily understandable

Yes No Total

No. Of Respondents
25 5 30

83.33% 16.67% 100%

The above chart and table shows the fact that majority of respondents, 83.33% believe that process of PMS is easily understandable while rest 16.67% have a negative opinion. So, it can be concluded that employees here easily understand PMS process which leads to higher performance.


Effectiveness of present performance appraisal system

Very Effective Less effective Not effective Total

No. Of Respondents
21 4 2 30

70% 13.33% 10% 6.67% 100%

Somewhat effective 3

The above table shows the fact that majority of respondents, 70% think that the present performance appraisal system is effective enough. 13.33% respondents think that it is less effective, 10% think that it is somewhat effective and rest 6.67% think that it is not effective. So, it can be concluded from the pie chart that majority of the respondents here believe that performance appraisal is much effective, which leads to the overall progress of the organization.


Are employee satisfied by performance appraisal and its genuinely ?

Strongly Agree Agree Neutral Disagree Strongly Disagree Total

No. Of Respondents
2 21 3 2 2 30

6.67% 70% 10% 6.67% 6.67% 100%

The above chart and table shows the fact that majority of respondents, 70% are satisfied by performance appraisal and its genuinity, while around 7% have a negative opinion. And 10% are neutral. So, it can be concluded that employees here are satisfied by performance appraisal and trust it to be genuine, which leads them to higher performance.


Does employee fully understand organizational goal and objective?

Yes No Total

No. Of Respondents
28 2 30

83.33% 16.67% 100%

The above chart and table shows the fact that majority of respondents, 83.33% believe that they fully understand organizational goals and objectives, while rest 16.67% have a negative opinion. So, it can be concluded that employees here fully understand organizational goals and objectives, which let them know their responsibilities towards achieving these goals.


Does organizational value employees feedback about PMS?

Strongly Agree Agree Neutral Disagree Strongly Disagree Total

No. Of Respondents
1 23 3 3 0 30

3.33% 76.67% 10% 10% 0% 100%

The above chart and table shows the fact that majority of respondents, 76.67% agree to the fact that organization value their feedback regarding PMS, while 10% disagree and other 10% are neutral. So, it can be concluded that employees here agree to the fact that organization value their feedback regarding PMS, which leads them to high performance which finally leads to success of organization.


Employees view towards PMS value team work?

Strongly Agree Agree Neutral Disagree Strongly Disagree Total

No. Of Respondents
24 2 3 1 0 30

80% 6.67% 10% 3.33% 0% 100%

The above chart and table shows the fact that majority of respondents, 80% strongly agree to the fact that PMS value team work, while 10 % are neutral and 3.33% disagree to the fact. So, it can be concluded that employees here agree to the fact that PMS values team work. Thus, employees also value team work which leads to overall organizations success.


Respondents views regarding awarding hard work?


No. Of Respondents Strongly Agree 2 Agree 14 Neutral 10 Disagree 4 Strongly Disagree 0 Total 30

Percentage 6.67% 46.67% 33.33% 13.33% 0% 100%

The above chart and table shows the fact that 46.67% employees agree that hard work is valued in their organization, while 33.33% are neutral. Also 13.33% disagree to this fact. So, it can be concluded that employees here have a mixed opinion regarding awarding hard work, but still majority, i.e. 46.67% agree to this fact.


Do current PMS motivate employees?

Yes No Total

No. Of Respondents
24 6 30

80% 20% 100%

The above chart and table shows the fact that majority of respondents, 80% agree that current PMS motivates to work better while rest 20% have a negative opinion. So, it can be concluded that employees here are motivated to work much better towards achieving their organizational goals through PMS.


PMS is helpful for overall progress of individual?

Strongly Agree Agree Neutral Disagree Strongly Disagree Total

No. Of Respondents
24 2 3 1 0 30

80% 6.67% 10% 3.33% 0% 100%

The above chart and table shows the fact that majority of respondents, 80% strongly agree to the fact that PMS is helpful for overall progress of an individual, while 10 % are neutral and 3.33% disagree to the fact. So, it can be concluded that employees here agree to the fact that PMS is helpful for the overall progress of an individual, which leads them to perform much better


PMS is about making people work harder

Strongly Agree Agree Neutral Disagree Strongly Disagree Total

No. Of Respondents
8 16 3 2 1 30

26.67% 53.33% 10% 6.67% 3.33% 100%

The above chart and table shows the fact that majority of respondents, 53.33% agree to the fact that PMS is about making people work harder and also 53.33% strongly agree to this. 10% are neutral to this and around 7% disagree to this. So, it can be concluded that employees here agree that PMS is about making people to work hard, which leads to better performance and achievement of organizational goals.


Do PMS need any change?

Yes No Total

No. Of Respondents
2 28 30

6.67% 93.33% 100%

The above chart and table shows the fact that majority of the respondents, 93.33% need no change in current PMS while rest 6.67% do require a change. So, it can be concluded that employees are satisfied with the performance appraisal system followed in the organization.


9. Finding

Performance Management System: very good awareness about the PMS system. good. very good. s Average. very good. Very good. ive and successful for the organizational goal.


10. Limitation of the Study

resulted in some subjectivity. same may not be the true representative of the Company, resulting in biased results. ducting study such as this, the possibility of better results, using deeper statistical techniques in analyzing and interpreting data may not be ruled out. mpanies are required to maintain confidentiality.



implemented and institutionalized at RIL-VMD.PMS system is well designed. The PMS system, through which employees can fulfil their personal needs by defining their KRAs (performance) it means that they achieve their personal goal which ultimately helps in achieving their organizational goals or objectives. The PMS system has achieved the objectives of the organization by the experienced, capable and efficient HR personnel. m is the most concerned area.




VMD. But they (some of the employees) also told that there are some lacking areas in these system. So that these lacking area should be removed and for this there are some recommendation or suggestion which I got from the opinion of employees of RIL, VMD. The recommendations or suggestions are as follows:tive and transparent.

ent as it should be.

in this way the PMS of company will be more rigorous & effective.

multi location of the company. nd that too with the consensus with them.

should be employed having quantifiable data.


Dear respondent, As a part of our management studies requirement in BBA have to submit project based on summer vocational training. I request you to fill up this questionnaire and help us in my studies. I assure you that this database used for academic purpose only.

Basic Questions Gender:-





Performance Management System in RIL

(1) Do you believe that PMS is effective method?

(2) PMS encourage employees towards achievement of organization goals?

3) What do you understand by PMS?

(4) Do you think that PMS is transparent enough?


(5) Do you think that most important aspect of PMS is setting of goal?

6) My awareness about functioning of PMS is

cellent (7) Effectiveness of PMS in fulfilling my personals needs is

(8) You fully understand the organizations business goals & objectives?

(9) The process of PMS is easily understood by you?


(10) How effective is your present performance appraisal system in your organization?

Somewhat effective (11) Are you satisfied by performance appraisal and its genuinely?

(12) Your organization values your feedback about PMS?

disagree (13) PMS valued team work.


(14) Hard work is rewarded.

(15) Do current PMS motivate you?

(16) PMS is helpful to your overall progress of individuals.

(17) PMS is about making people work harder.

(18) Do you think PMS needs in any change in your organization?



BOOKS: Author K ASWASTHAPPA Edition 10th Publication Tata Mc. Grew Hill Publishing Co. Ltd. Place New Delhi Author KOTHARI C. R Author MICHAEL ARMSTRONG AND ANGELA BARON