DISSERTATION REPORT

ON
A STUDY OF PERFORMANCE APPRAISAL
AT
BHEL

Submitted in partial fulfillment of the requirement for

award of the degree of
MASTER OF BUSINESS ADMINISTRATION
2013-2015
(UTTARAKHAND TECHNICAL UNIVERSITY, DEHRADUN)

ROORKEE COLLEGE OF MANAGEMENT &

COMPUTER APPLICATION, ROORKEE
Submitted To:

Submitted By:

Mrs. ALKA CHAUDHARY

SHALINI SINGH
Professor (RCMCA)

MBA (4th SEM)

ACKNOWLEDGEMENT

I am indebted to Mr. Girish, the Human Resource Manager of

BHEL, for giving me an opportunity to do survey in this
esteemed organization. His knowledge & experience was a
great motivating factor. This effort would not have been
possible without his able, efficient, valuable and timely advice,
insights and thoughts. I am very much thankful to sir his
valuable guidance and support.
I take this opportunity to express my heartfelt gratitude to my
faculty guide Mrs. Alka Choudhary, faculty. I am thankful to
mam for her valuable support and guidance throughout the
project.
I am equally grateful to each and every member of BHEL
limited for their whole-hearted cooperation in completing this
project in stipulated time.
I extend my sincere thanks to all distributers, wholesalers who
helped me for my project.
Last but not the least, I would like to thank my family members
and friends whose unbounded support facilitated the
successful completion of the project.

DECLARATION

I, Shalini Singh student of MBA 4th Sem from RCMCA, Roorkee

declare that all the information, facts & figure represented in
this report are actual and collected by me in my dissertation
report PERFORMANCE APPRAISAL OF BHEL with special
reference to BHEL Haridwar UNIT.

(SHALINI SINGH)

PREFACE
The professional training is the internal part of an M.B.A.
program. It helps the Students to understand practical aspects
of Business Management in a better way as a part of my MBA
program
at Institute of Management Studies
I
was
supposed to work with the organization.
Marketing Research is the systematic and objective
identification, collection, analysis, dissemination , and use of
information for the purpose of improving decision making
related to identification and solution of problems and
opportunity .
Perception is the process, by which an individual selects,
organizes and interprets information inputs to create a
meaningful picture of the world around . To be a Master of
Business Administration student is a matter of pride because
we are in a field, which helps us to develop from a normal
human being into a disciplined, and dedicated
professional.
One has to be a good learner to sharper knowledge in the
particular field to achieve and attain the desired goals and
heights. I conducted to gain an understanding of what goes in
to mind of the employers about PERFORMANCE APPRAISAL. I
used research questionnaires as the research and data
collection tools. The responses were collected from 50
respondents from various areas.

CONTENTS

1. Introduction
----------------------------------------------------------------------------1
1.1
Introduction
of
the
topic
---------------------------------------------------------2
1.2
Purpose
of
study-------------------------------------------------------------------3
1.3
Methods---------------------------------------------------------------------------- 9
2. Introduction of Company
2.1
Production
facilities--------------------------------------------------------------17
2.2Company
Profile---------------------------------------------------------------------19
2.4Mission of
Company-----------------------------------------------------------------22
2.4Objective of the study
3. Research Methodology
3.1 Research Size
---------------------------------------------------------------------34
3.2 Data Collection
-------------------------------------------------------------------35
3.3 Scope of the study
------------------------------------------------------------------46

4.
Data
analysis
----------------------------------------------------------------------------53
5. Findings and the recommendations from the project
------------------------- 57
6.
Conclusion
-------------------------------------------------------------------------------61
7.
Bibliography
-----------------------------------------------------------------------------63
8.
Annexure
---------------------------------------------------------------------------------68

CHAPTER 1
INTRODUCTION

1.1 INTRODUCTION OF THE TOPIC

PERFORMANCE APPRAISAL
Performance Appraisal is the systematic
evaluation of the performance of employees and to understand
the abilities of a person for further growth and development.
Performance appraisal is generally done in
systematic ways which are as follows:
The supervisors measure the pay of employees and
compare it with targets and plans.
The supervisor analyses the factors behind work
performances of employees.
The employers are in position to guide the employees for
a better performance.

According to Flippo, a prominent personality in the field of

Human resources, Performance appraisal is the systematic,
periodic and an impartial rating of an employees excellence in
the matters pertaining to his present job and his potential for a
better job."
Performance appraisal is a systematic way of reviewing and
assessing the performance of an employee during a given
period of time and planning for his future.
It is a powerful tool to calibrate, refine and reward the
performance of the employee. It helps to analyze his
achievements and evaluate his contribution towards the
achievements of the overall organizational goals.
By focusing the attention on performance, performance
appraisal goes to the heart ofpersonnel management and
reflects the management's interest in the progress of the
employees.

PURPOSE OF PERFORMANCE APPRAISAL

Increment in salary, promotion, transfer, layoff,

termination.
Training and development needs.
Providing feedback on performance.
Basis for research and reference for personnel decision in
future

METHODS OF PERFORMANCE APPRAISAL

1. Ranking Methods:
Ranking method is the oldest and simplest method of rating the
employees. Here, all the employees who are doing the same
job are compared with each other. Then, each employee is
given a particular rank, i.e. First Rank, Second Rank, etc. The
best employee is given the first rank, and the worst employee
is given the last rank.

There are three ranking methods. VizSimple Ranking Method,

Alternation Ranking Method, and Paired Comparison
Ranking method can be done very quickly and conveniently.

2. Graphic Rating Scale Method:

Graphic rating scale method is one of the oldest and widely
used methods of performance appraisal. Here a graphic scale is
used to rate the employee. Factors such as quality of work,
quantity of work, dependability, etc. are rated.
A simple graphic rating scale is shown in the sample table
below.

Graphic rating scale method is easy to understand and simple

to use. It also consumes less time. However, it involves a lot of
paper work and there are chances of bias by the rater.

3. Confidential Reports:

This is an old and traditional method of rating the employees. A

confidential report is a report about the employee. It is
prepared by his immediate superior. It contains information
about the employee's strengths, weaknesses, major failure and
achievements. It also contains information about the
employee's personality traits (qualities) and about his behavior.
Confidential report is used to take decisions about transfers,
promotions, etc.

4. Checklist Method:
First a checklist is prepared. It contains some statements about
the employees behavior on the job.
For e.g. check the following sample of a simple checklist.
The rater has to tick mark "Yes" or "No" for each statement. The
rater must have full knowledge about the employee's behavior
on the job.
The main advantages of checklist method are: It is simple,
It is convenient,

 It takes less time, and

It is very economical.
The main disadvantage of checklist method is that the
statements are structured, and it does not have depth like the
Critical Incident Method and the Essay Method.

5. Critical Incident Method

Here, the supervisor writes a brief report about any incident,
which affects the performance of the job. The incident may be
positive or negative. For e.g. A salesman is very patient with a
difficult customer, and he succeeds in selling the goods to that
customer. This is a critical incident. The supervisor writes a
brief report about this incident. This report is in favour of the
salesman. So the salesmen will get a high rating. This method
has some disadvantages, as some supervisors only record
negative incidents. They do not record positive incidents. Some
supervisors are also biased while recording the incidents.

6. Narrative Essay:
Narrative Essay is the simplest method of rating an employee.
Here, the rater writes in detail, the employee's strengths,
weaknesses and potential. He also gives suggestions for
improvement. If the essays are written well then they can be
used to improve the performance of the employees. This
method is better than other complex methods.

MODERN METHOD OF PERFORMANCE APPRAISAL

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

2. BEHAVIORALLY ANCHORED RATING SCALES

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

behaviour with BARS. Developing and practicing BARS requires

expert knowledge.

3. HUMAN RESOURCE ACCOUNTING METHOD

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

4. 360-DEGREE-PERFORMANCE-APPRAISAL
METHOD
360 degree feedback, also known as 'multi-rater feedback', is
the most comprehensive appraisal where the feedback about
the employees performance comes from all the sources that
come in contact with the employee on his job.
360 degree respondents for an employee can be his/her peers,
managers (i.e. superior), subordinates, team members,
customers, suppliers/ vendors -anyone who comes into contact
with the employee and can provide valuable insights and
information or feedback regarding the "on-the-job" performance
of the employee.
360 degree appraisal has four integral components:

1. Self-appraisal
2. Superiors appraisal
3. Subordinates appraisal
4. Peer appraisal.

SUPERIOR

SELF

EMPLOYEE

PEER

SUBORDINATE

Four Integral Components of 360 Degree Appraisal

Self-appraisal gives a chance to the employee to look at his/her

strengths and weaknesses, his achievements, and judge his
own performance. Superiors appraisal forms the traditional
part of the 360 degree performance appraisal where the
employees responsibilities and actual performance is rated by
the superior.
Subordinates appraisal gives a chance to judge the employee
on the parameters like communication and motivating abilities,
superiors ability to delegate the work, leadership qualities etc.
Also known as internal customers, the correct feedback given
by peers can help to find employees abilities to work in a team,
co-operation and sensitivity towards others.
Self-assessment is an indispensable part of 360 degree
appraisals and therefore 360 degree Performance appraisal
have high employee involvement and also have the strongest
impact on behavior and performance. It provides a "360-degree
review" of the employees performance and is considered to be
one of the most credible performance appraisal methods.
360 degree performance appraisal is also a powerful
developmental tool because when conducted at regular
intervals (say yearly) it helps to keep a track of the changes
others perceptions about the employees. A 360 degree
appraisal is generally found more suitable for the managers as
it helps to assess their leadership and managing styles. This
technique is being effectively used across the globe for
performance appraisals. Some of the organizations following it
are Wipro, Infosys, and Reliance Industries etc.

5. MANAGEMENT BY OBJECTIVES (MBO) METHOD

The concept of Management by Objectives (MBO) was first
given by Peter Drucker in 1954. It can be defined as a process
whereby the employees and the superiors come together to
identify common goals, the employees set their goals to be
achieved, the standards to be taken as the criteria for
measurement of their performance and contribution and
deciding the course of action to be followed.

The essence of MBO is participative goal setting, choosing

course of actions and decision making. An important part of the
MBO is the measurement and the comparison of the
employees actual performance with the standards set. Ideally,
when employees themselves have been involved with the goal
setting and the choosing the course of action to be followed by
them, they are more likely to fulfill their responsibilities.

CHAPTER 2.
INTRODUCTION
OF
COMPANY

COMPANY

PROFILE

Background & Management

Values, Mission & Objective
BHELs product profile
Shareholding pattern

BHEL: A CORPORATE GIANT

Established in the late 50's BHARAT HEAVY ELECTRICALS
LIMITED (BHEL) is a name which is recognized across the
industrial world. It is one of the largest engineering and
manufacturing enterprises in INDIA and is one of the leading
international companies in the power field. BHEL offers a wide
spectrum of products and services for core sectors like power
transmission,

industrial

transportation,

oil

and

gas,

telecommunication etc. Besides supply of non-conventional

energy systems. It has also embarked into other areas including
defense and civil aviation. A dynamic 63000 strong team
embodies the BHEL philosophy excellence through continuous
striving for state of the art technology. With corporate
headquarters in NEW DELHI, fourteen manufacturing units, a
wide spread regional services network and projects sites all
over

India

and

even

abroad,

BHEL

is

India's

industrial

ambassador to the world with export presence in more than 50

countries.
B.H.E.L.'s range of services extent from project feasibility
studies to after sales services, successfully meeting diverse
needs through turnkey capability.
BHEL has had a consistent track record of growth, performance
and profitability. The World Bank in its report on the Indian
Public Sectors, has described BHEL as one of the most efficient
enterprises in the industrial sector, at par with international

standards of efficiency". BHEL has acquired ISO 9001 certificate

for most of its operations and has taken up Total Quality
Management (TQM).
All the major units/divisions of BHEL have been upgraded to
the latest ISO-9001: 2000 version quality standard certification
for quality management. All the major units/divisions of BHEL
have been awarded ISO-14001 certification for environmental
management

systems

and

OHSAS-18001

certification

for

occupational health and safety management systems.

BHEL occupies an all-important niche as evident by its ranking
by CII amongst top eight PSUs based on financial performance.
Recently in survey conducted by business India, BHEL has been
rated as seventh Best Employer in India.

International Business:-

BHEL has, over the years, established its references in over 60

countries of the world. These references encompass almost the
entire range of BHEL products and services, covering Thermal,
Hydro and Gas based turnkey power projects, substation
projects, and rehabilitation projects; besides a wide variety of
products like: Transformers, Compressors, Valves and Oil field
equipment,

Electrostatic

Precipitators,

Insulators,

Exchangers, Switchgears, Castings and Forgings etc.

Heat

Some of the major successes achieved by BHEL have been in

Gas-based power projects in Oman, Libya, Malaysia, Saudi
Arabia,
Thermal

Iraq,

Bangladesh,

Power

Projects

Sri
in

Lanka,

Cyprus,

China,
Malta,

Kazakhstan;

Libya,

Egypt,

Indonesia, Thailand, Malaysia; Hydro power plants in New

Zealand, Malaysia, Azerbaijan, Bhutan, Nepal, Taiwan and
Substation projects & equipment in various countries. Execution
of these overseas projects has also provided BHEL the
experience

of

working

with

world-renowned

Consulting

Organizations and Inspection Agencies.

The Company has been successful in meeting demanding

requirements International markets, in terms of complexity of
the

works

as

requirements

well
viz.

as
HSE

technological,

quality

requirement,

financing

and

other

package,

associated O&M services to name a few. BHEL has proved its

capability to undertake projects on fast-track basis. BHEL has
also established its versatility to

successfully meet the other varying needs of various sectors,

be it captive power, utility power generation or for the oil
flexibility to exhibited adaptability by manufacturing and
supplying intermediate products.

Values:
Strike adherence to commitments
Foster learning, creativity and team work.
Ensure speed of response
Respect for dignity and potential for individual
Loyalty and pride in the company
Zeal to excel and zest for change
Integrity and fairness in all matters
Most of them have been rephrased.
"Zest for change" has been added as change has been
integral with success and the rate at which change is needed
is very high compared to earlier period.

OBJECTIVES

GROWTH
To ensure a steady growth by enhancing the competitive edge
of BHEL in existing businesses, new areas and international
operations.

PROFITABILITY
To provide a reasonable & adequate return on capital
employed, primarily through improvement in operational
efficiency, capacity utilization & productivity and generate
adequate internal resources to finance the companys growth

CUSTOMER FOCUS
To build a high degree of customer confidence by providing
increased value for his money through internationals standards
of products quality, performance and superior customer
services

PEOPLE ORIENTATION
To enable each employee to achieve his potential, improve his
capabilities, perceive his role & responsibilities and participate
& contribute positively to the growth and success of the

Company. To invest in human resources continuously and be

alive to their needs

IMAGE
To fulfill the expectations which stakeholders like government
as owner, employees and the country at large have from BHEL.

BHEL PRODUCT PROFILE

1.Power Generation
Power Generation Sector comprises thermal, hydro and nuclear
power plant business. As of 31.3.2006.BHEL supplied sets
account for 76741 MV in the country, as against nil till 1969-70.
Custom- made hydro sets of Francis, Pelton and Kalpan for
different head-discharge combinations are also engineered and
manufactured by BHEL
In all, orders for more than 880 utility sets of thermal, hydro,
gas and nuclear have been placed on the company as on date.
The power plant equipment manufactured by BHEL is based on
contemporary technology comparable with the best in the
world, and is also internationally competitive

2.Industries

BHEL manufactures and supplies major capital equipment and

system like captive power plant, centrifugal compressor, drive
turbines, industrial boilers and auxiliaries etc. BHEL has also
emerged as a major supplier of controls and instrumentation
systems, especially distributed digital control systems for
various power plants and industries.

3.Transportation
Most of the trains on Indian Railways, whether electric or diesel
powered are equipped with BHELs traction propulsion system
and controls. Indias first underground metro at Kolkata runs on
drives and controls supplied by BHEL. Almost all the EMUs in
service are with electrics manufactured and supplied by BHEL.
BHEL has also diversified into the area of track maintenance
machines for Indian Railways.

4.Renewable Energy
BHEL has been manufacturing and supplying a range of
Renewable Energy systems and products. It includes Solar
Energy systems namely, PV modules, PV power plants, solar
lanterns, solar pumps etc.

5.Oil and Gas

BHEL is supplying onshore drilling rigs equipment viz. draw

works, rotary table, traveling block, swivel, mast and sub
structure, mud systems and rig electrics and Xmas tree valves

6. Transmission
BHEL supplies a wide range of products and systems for
transmission

and

distribution

application.

The

products

manufactured by BHEL include power transformers, instrument

transformers, dry type transformers etc.

ACTIVITY PROFILE
Power Generation and Transmission

Steam Turbines-Generator sets and Auxiliaries

Boilers and Boilers Auxiliaries
Nuclear Power Generation Equipments
Hydro Turbines-Generator Sets & Auxiliaries
Gas Turbines-Generator Sets
Heat Exchangers
Condensers
Bag Filters
Valves
Pumps
Electrical Machines
Power, Distribution and Instrument Transformers
Reactors
Porcelain

Industries/Transportation/Oil & Gas /Renewable

Energy

Steam Turbine-Generators Sets

Gas Turbine-generators Sets
Diesel Engine-Based Generators
Drives Turbines
Marine Turbines
Industrial Heat Exchangers
Industrial Valves
Industrial Fans
Capacitors
Broad Gauge AC, AC/DC Locomotives
Diesel-Electric Shunting Locomotives
Traction Motors & Control Equipment
Electric Trolley Buses
Battery operated Passenger Vans

Systems and Services

Turnkey Utility Power Station/EPC contracts

Captive Power Plant
Consultancy Services
Construction Services
Software packages for Utilities

BHEL IN INDIA

Power Sector

REGIONAL OFFICES (POWER SECTOR):

1. NEW DELHI (NORTHERN REGION)
2. CALCUTTA(EASTHREN REGION)
3. NAGPUR (WESTHREN REGION)
4. MADRAS (SOUTHREN REGION)

Industry Sector

MANUFACTURING UNITS:1. BANGALORE

2. BHOPAL
3. HARIDWAR
4. HYDRABAD
5. JHANSI
6. RANIPET
7. RUDRAPUR
8. TIRUCHIRAPALLI

MAJOR COMPETITORS OF BHEL

1. ELECTRO CONSULT

ITALY

2. ABB

SWITZERLAND

3. BEEHTEL

USA

4. BLOCK & NEATCH

USA

5. GENERAL ELECTRIC

USA

6. RAYTHEON
7. WESTINGHOUSE

USA
USA

8. CNMI & EC
9. SANGHAI ELECTRIC CO

CHINA
UK

10.GEC-ALSTHOM

UK

CONTRIBUTION TO POWER SECTOR

Today the power sector plays a very important role in

building any Nation.
It helps the country to develop its economy and the life style
of society.

 BHEL contributes 79% of the national power generation. In

which 44% contribution is made only by BHEL Hardwar, 35%
contribution is made by BHEL other than Hardwar unit and
rest 21 % contribution made by other companies.

TOTAL QUALITY FOCUS:

To

face

the

increased

competition

from

MNCs

(due

to

liberalization policy of Government) in early 90s and to enter

European market we moved towards ISO 9000 Certification.
Concept of Business Excellence through EFQM Model was
launched in entire BHEL on pilot scale in Oct.1995 In 1997
HEEP launched TQM in the entire Plant and since then SelfAssessment is done every year in September. Based on feedback
Report of Assessment, critical success factors are identified. and
TQ action plans are drawn. The philosophy of ISO 9001, TQM and
ISO 14001 has been integrated BHEL Hardwar for ultimately
achieving BUSINESS EXCELLENCE. HEEP Hardwar plant is
accredited for ISO 9001 and ISO 14001 and is now on March
towards TQM.5-S was launched in March 1999 in a big way and
now it has become a way of life in the organisation. In 2000 HEEP
applied for CII-EXIM Business excellence award and site visit was
conducted Bu CII team in Sept.2000.Cii feedback has gone a log
way in carrying out further improvement plans and giving a
structured thrust to TQM movement

In July 2001, Units TQ Council reviewed the TQ Action Plans

2001-02 for its effectiveness and impact on accelerating the pace
of improvement and consequent TQ Score. Executive Director laid
the challenge of achieving the TQ score of 650.With an objective
to bring awareness about the CII-EXIM Business Excellence Model
amongst the Sr. Executives, the first Top Management TQM
Workshops held at Rishikesh during oct.2001Executive Director
who is TQ Assessor also, himself steered the Workshop with
assistance from some experienced TQ Assessor of HEEP. It
followed by second Top Management TQM Workshop steered
again by Ed was held at HRDC on Oct29,2001.Subsequantly the
third

Top

Management

TQM

Workshop

was

held

in

Nov2001,where-in Sr. Counselor, CII deliberate the detail on Best

practices

of

TATA

STEEL-the

winner

of

CII-EXIM

Business

Excellence Award 2000.Simultaneously ,TQ Assessors training

program for the select group of young managers(to be developed
as Think Tanks)was organized in Nov2001.To give further boost
Apex Group was formed. Apex Group developed Roadmap to
Business Excellence based on Criteria Linkage of CII-EXIM
Business Model and the initiatives taken at Hardwar was drawn
by the group and it was widely circulated amongst the employees
through special issue of Hardwar Current in April 2002.It followed
by JBE workshop of Apex TQM Group held at Tehri on June 30 and
July 1, 02 where-in following business policy and critical factors
was evolved.
BUSINESS POLICY:

In-line with Companys Vision, Mission and values, we

dedicate ourselves to sustained growth with increasing
positive Economic Value Addition and Customer focused
business leadership in the Power and Industry Sector.

BHEL AT HARIDWAR

HEAVY
ELECTRICAL
HARIDWAR:

EQUIPMENT

PLANT,

Heavy Electrical Equipment Plant, Hardwar of this Multi-unit

corporation with its 7467 strong

highly skilled technicians,

engineers, specialists and professional experts is the symbol of

Indo Soviet and Indo German Collaboration. It is one of the four
major manufacturing units of the BHEL. With turnover of 1088
Crores and PBT of Rs.68 Crores, HEEP added 3000 MW of power
to the National grid during 2001-02. HEEP is engaged in the
manufacture of Thermal and Nuclear Sets up to 1000MW, Hydro
Sets up to HT Runner dia 6300mm, associated Apparatus
Control gears, AC& DC Electrical machines and large size Gas
Turbine of 60-200 MW. HEEP Hardwar contributes about 44% of
Indias total installed capacity for power generation with total
capacity of Thermal, Nuclear & Hydro Sets of over 45000MW
currently working at a Plant Load Factor of 76% and Operational
Availability of 86%. Inspite of acute recession in economy, BHEL

Hardwar bagged recent orders worth 1500 Crores including

repeat orders for Suratgarh-5, Kota-6, Raichur-7, Rihand-3&4
and Ramagundam-7 Unit. Additionally, Mejia-4, Panipat-7&8,
Maithon and Bhatinda are in pipeline.

CENTRAL

FOUNDRY

FORGE

PLANT

(CFFP)

HARIDWAR
The Central Foundry Forge Plant was set up at Hardwar with
French collaboration. The construction started in 1974 and
production was commenced in 1976.This plant has in-built high
degree of sophistication normally associated with much larger
plants and has successfully developed various intricate castings
and forgings which were imported earlier.
CFFP has successfully manufactured various types of steels,
e.g., creep resistant steels, heat resistant steels, stainless
steels, armor steels etc. per Indian and International standards.
CFFP has been supplying sophisticated castings used in power
sector e.g., steam turbine castings, turbo generator press rings,
hydro turbine Kaplan blades and Francis runners, compressor
castings etc. The castings have also been manufactured for
Defense, Nuclear, Chemical and steel sectors.
Critical Forgings manufactured by CFFP include: HP, IP and LP
rotors and discs etc., from steam turbines, shafts, pole and
plates, rotor bush, thrust collars etc., for hydro sets and jackets
and discharge cover for pumps besides various types of critical
forgings for defense, nuclear, steel, cement and machine

building industries. CFFP is further upgrading and augmenting

its facilities in the high growth and high technical areas.
Most of the castings and forgings produced by CFFP are of
import substitution nature. CFFP has also exported motor frame
and steam turbine castings and forgings to CIS and Germany.
CFFP has also won the National award for import substitution. It
has been recognized as a well known steel maker-Foundry and
Forge Master by Indian Boiler Board. The American Bureau of
Shipping has also approved CFFP for the manufacture of
castings and forgings for ship building industry.

Objective of the study:

My main objective is to know about existing

performance appraisal system in BHEL.
Know the practical implications of appraisal.
To know about different phrases of Performance
Appraisal.
To check whether employees are satisfied with this
system.
To know the reason of distortion of the appraisal
system among them and their opinion on it.

SYSTEM OF BHEL OF PERFORMANCE APPRAISAL

In BHEL performance appraisal is done annually. The main
objective for which this system is designed is that it is meant
for further improvements, development and advancement of
performance so as to achieve organizations objectives as well
as overall development of employees

Process of performance appraisal in BHEL

At first the assessment form is designed by the personnel
department specialist and is approved by unit head.
Then the personnel department specialist sends these
assessment forms to the respective department heads of the
organizations.
After these respective departments heads assess the
performance of their employees on the basis of the points given
in the form.
After that remark are given by the department heads the next
step is to give recommendations were given by personnel
department specialists
Finally this assessment forms is sent to the unit head for further
evaluation and recommendations.

BHEL uses graphic rating scale methods to evaluate the

performance of employees and this form are circulated 4 times
in a year after every period of 3 months so at last the total of 4
forms is considered for the evaluations.

Bharat Heavy Electronics Ltd., Haridwar

PERFORMANCE/COMPETENCY EVALUATION
REPORT
PERIOD OF REVIEW YEAR 2012-2013

NAME OF EMPLOYEE:

DEPT.:

DESIGNATION:

DATE OF JOINING:

QUALIFICATION:
EXPERIENCE:

TOTAL

ASSESSMENT CONDUCTED BY:

APPOINTMENT DETAILS:

CONFIRMED

PERFORMANCE COMPETENCY REPORT:

DESCREPTION
1

JOB KNOWLEDGE

MARK
RATED
(%)
30

MARKS
OBTAINED
%

REMARKS

GENERAL INTELLIGENCE

10

ATTITUDE TO WORK

10

REGULARITY &
PUNCTUALITY

BEHAVIOUR & CONDUCT

WORK EFFICIENCY

10

ADHERENCE TO
INSTRUCTION

10

INITIATIVE

10

KNOWLEDGE OF ISO
9001 : 2008

1
0

KNOWLEDGE OF
QUALITY POLICY & ITS
OBJECTIVE

1
1

OVERALL MARKS/

100

RATING OUT OF

ANY SPECIFIC ACHIEVEMENT DURING LAST ONE YEAR

PLEASE EVALUATE AND SPECIFY WHETHER HIS
PERFORMANCE/COMPETENCY LEVEL HAS IMPROVED
AFTER IMPARTING TRAINING
PERSONNEL DEPARTMENT VIEW AND FURTHER ACTION,
IF ANY
HEAD OF DEPARTMENT
UNIT HEAD

CHAPTER 3.

RESEARCH
METHODOLOGY

3.1 RESEARCH METHODOLOGY

Research can be defined as a systematic and objective process
of gathering, recording and analyzing data to guide decision
making. It is mainly used to reduce the uncertainty of decision.
The key objective of any research is to obtain accurate,
relevant and timely information.

3.2Research Design

Research design can be defined as the plan and structure of

inquiry, formulated in order to obtain answer to research
question on business aspect. It constitutes the overall program
of the business research process. It can be understood as that
which gives the blueprint o for collection and measurements
and analysis of business data. It helps researchers to utilize
available resources efficiently to achieve research objectives. It
outlines the actual research problems on hand and details the
process for solving it. It clearly describes the techniques to be
used for selecting sample, collecting data managing costs and
other aspects that are essentials for conducting business
research. Decisions are taking depending on certain crucial
issues like the study purpose and objective the type of data
needed the method adopted for obtaining the data and
analyzing it.

Research design is essential because it facilitate the smooth

flow of various research processes. An ideal research design is
to be developed, if available resources such as time, manpower
and money are considered before beginning the design. The
validity of research results is based on the initial research

design. If it is not properly prepared it will jeopardize the whole

research process and will not meet its purpose. The research
design had to be developing very carefully, as it forms the
foundation of the entire research process that follows.
Some important characteristics of a good research
design are flexibility adaptability, efficiency, begin economic
and so on. An ideal design should take in to account important
factors like
Identifying the exact research problem to be studied.
The objective of the research

The process of obtaining information

The availability of adequate and skilled manpower.
The availability of adequate
carrying out research.

financial

resources

for

The research should be designed so that it adapts well to the

type of research to be carried out. For instance in the case of
exploratory research, which is usually carried out for
discovering ideas for further research, the research design
should be flexible enough to consider different aspect of the
problem situation.
For research regarding testing of hypothesis for measuring
casual relationships between variables the research design
should allow for influences about causality along with
minimizing bias and maximizing reliability. These are some
important characteristics of good research design.

Research plan:

 Interviewing the prospective managers and

employees.
Analysis of data according to the information
collected.

Sample Size:
Sample Size is: 50
Successful Survey: 50
Sample targets are H.R Managers and Employees.
Sampling Area: Within BHEL Ltd.

CHAPTER 4.
DATA ANALYSIS

DATA ANALYSIS AND INTERPRETATION

1.Your Performance is appraised as-

SI.NO.
1
2
3

Description

No. of
Percentage
Respondents

Individually
In team
Both
Total

40
10
50

75%
15%
10%
100

Percentage

10%

Individually
In team

15%

Both

75%

Interpretation:
The analysis reveals that maximum no of employees
performance is appraised individually and about 15% of
respondents performance is apprised in team.

2. Your performance is appraised by:

SI. NO.

1
2

Description No. of
Respondents
Manager
Personnel
Deptt.
Specialist
High level
Manger
Total

42
-

Percentage
84%
0%

16%

50

100

Interpretation:
This answer shows that 84% of respondents performance
is apprised by managers while 16% of respondents
performance is apprised by high level managers.

3. The system of appraisal provides the real

measurement of the performance of the
employee.

SI. No.

1
2
3

Description
Correct
Partially
Correct
Incorrect
Total

No. of
Respondents

Percentage

37
10

74
20

3
50

6
100

Interpretation:
The analysis shows that maximum numbers of employees
thinks that appraisal provides real measurement of
performance while 20% think that it provides partial
measurement.

4. Appraisal system shows any scope of

Improvement in ones performance.

SI. No.
1
2

Description
Agreed
Partially

No. of
Respondents
32
10

Percentage
64
20

agreed
Disagreed
Total

8
50

16
100

Interpretation:
The analysis reveals that 64% of respondents are of the opinion
that performance appraisal shows scope of improvement in
ones performance while 20% of them are partially agreed and
16% of them think it does not help.

5. Performance appraisal helps you in.

SI. No.

Description No. of

Percentage

Respondents
1
2
3

Promotion
Career
planning
Goal
achievement
Total

39
7

78
14

50

100

Interpretation:
The analysis implies that 78% of respondents think that it helps
in promotion, 14% of them think that it helps in career planning
and 8% of them think that it helps in goal achievement.

6. Appraisal system helps you to know your

progress in achieving the set targets.
SI. No.

1
2
3

Description
True
Partially True
False
Total

No. of
Respondents
42
8
50

Percentage

84
16
100

Interpr
etation:
This analysis indicates that maximum no. of employees think
that appraisal system helps in achieving the set targets and
16% respondents think that this system is not much helpful in
achieving the set targets.

7. To what extent you are satisfied with the

existing performance appraisal system.

SI. No.

1
2
3

Description
To a great
extent
To a little
extent
To some
extent
Total

No. of
Respondents

Percentage

35

70

10

10

20

50

100

Interpretation:
This analysis implies that 70% of respondents are satisfied with
the existing performance appraisal to a great extent, 10% of
them are satisfied to a little extend and 20% of them are
satisfied to some extent.

8. Time spent on your feedback.

SI. No.

1
2
3

No. of
Respondents

Description
30 min
60 min
More than 60
min
Total

Percentage

10
40
-

20
80
-

50

100

Time spent on feedback

20

30 mins.
60 mins.
Morine than 60 m

80

Interpretation

The above table and pie chart reveals that almost 80%
employees in the sample indicated that organization give
almost one hour to take their appraisal. However it is significant
to note that 20% employees feels that they get less than half
an hour to be appraised.

9. Is the performance appraisal system is

transparent.

SI. No.

1
2

Description
yes
No

Total

No. of
Respondents
46
4

50

Percentage

92
8

100

Interpretation:
The analysis shows that 92% of respondents think that
performance appraisal system is transparent and 8% of them
think that the system is not transparent.

10. Do you feel that rewards are given according

to your performance?

SI. No.

1
2

Description
Yes
No
Total

No. of
Respondents
36
14
50

Percentage

72
28
100

Inter
pretation:
As per the analysis 72% of respondents think that rewards are
given according to their performance while 28% of them think
that rewards are not given to them according to their
performance.

11. Is honest feedback given to you?

SI. No.

1
2
3

Description
Yes
No
False
Total

No. of
Respondents
41
9
50

Percentage

82
18
100

Interpretation:
This analysis shows that majority of employees said that honest
feedback is given to them and 18% of them say that feedback
given to them is not honest.

CHAPTER 5
FINDINGS &
RECOMMENDATIONS
FROM THE PROJECT

FINDINGS

Through the research conducted by me, I found that many

of the employees are satisfied with the existing
PERFORMANCE APPRAISAL SYSTEM but now management
feels that there is a need to change the system from
performance management system according to the
changing needs of the most of the organization.
Through the existing performance appraisal of BHEL is
very successful but they want that kind of environment in
the organization in which there is a clear communication
between the appraisal and the appraise.
The existing PERFORMANCE APPRAISAL SYSTEM OF BHEL
only focuses upon performance appraisal and generation
of rating. So they want to adopt performance
management system in which focus is on performance
management.
They want to adopt PERFORMANCE APPRAISAL SYSTEM
because in its emphasis is on performance improvement
of individuals, teams, organization and in the performance
appraisal system emphasis is on the relevant evaluation of
individuals.
Another reason to adopt PERFORMANCE APPRAISAL
SYSTEM is that performance rewarding may or may not be
an integral part. Defining and setting performance
standards is an integral part.

RECOMMENDATIONS

PERFORMANCE APPRAISAL SYSTEM should be based on

target setting and preference should be measured on the
basis of target achieved. The PERFORMANCE APPRAISAL
SYSTEM is parameter based which sometimes are not
quantifiable so they should adopt PERFORMANCE
APPRAISAL SYSTEM.

PERFORMANCE APPRAISAL SYSTEM should only reward

performance so that it would be less controversial of BHEL
the performance has been linked to earning of increment.

The PERFORMANCE APPRAISAL SYSTEM does not take care

about the placements. The placements of employees
should be linked with their performance.
The present system also does not take care about the
training of employees. The training of employees should
be linked with their performance and potential.

CHAPTER 6
CONCLUSION

Conclusion

After the critical analysis of performance appraisal system of

BHEL the PERFORMANCE APPRAISAL SYSTEM should based on
target setting and performance should be measured on the
basis of target achieved. The performance appraisal should
only reward performance so that it would be less controversial
so top performers would be benefited. The topic of the study
undertaken by me is relative so it took lot of time to understand
the system. The support and encouragement of BHEL
executives made the job easy. I recorded the response with the
help of questionnaire.
The basic idea designing the new system in the organization is
that the individual achieve higher level of performance in the
existing role and to provide on the job knowledge, positive
attitude and skill based training in the organization. Moreover it
creates a climate professionalism and prepares the
psychologically not only to face the challenges but also to
excel.
The system to be evaluated should be reviewed periodically so
as to ensure that training provided and carried out must go
along with the latest technology. Limit for the improvement of
the system is sky-high therefore suggestions are always
welcome.

LIMITATIONS
People are afraid of filling the questionnaire. It might be
possible that earlier they have not undergone this process.
Organization is reluctant to provide some data. Which are
confidential so it is very difficult to analyze these data.
Most of the people doesnt want to answer the question
properly
Time is given to conduct the study was short.
The sample may not be the exact representative of the
universe.

CHAPTER 7
BIBLIOGRAPHY

BIBLIOGRAPHY

Personal management and Industrial relation, Prof.

P.C.TRIPATHI

Research Methodology, C.R.KOTHARI.

Human Resource Management, L.M.PRASAD

WEBSITESwww.bhellndia.com
www.google.com

CHAPTER8.
ANNEXURE

QUESTIONNAIRE
The basic objective of Performance Appraisal?
A. Fully
B. Partial
C. No
Your performance is appraised asA. Individually
B. In Team
C. Both
Your performance is appraised byA. Manager
B. Personnel Deptt. Specialist
C. High Level Manager

The system of appraisal provides the real measurement of

the performance of the employee.
A. Correct
B. Partially Correct
C. Incorrect

Appraisal system shows any scope of improvement in

ones performance.
A. Agreed

B. Partially agreed
C. Disagreed
Performance appraisal helps you in.
A. Promotion
B. Career planning
C. Goal Achievement

Appraisal system helps you to know your progress in

achieving the set targets.
A. True
B. Partially True
C. False

To what extent you are satisfied with performance

appraisal System.
A. To a great extent
B. To a little extent
C. To some extent

Time spent on your feedback.

A. 30 min
B. 60 min.
C. More than 60 min.

 Is the performance appraisal system is transparent.

A. Yes
B. No
Do you feel that rewards are given according to your
Performance?
A. Yes.
B . No

Is honest feedback given to you?

A. Yes.
B. No
C. False

If any development is required after performance

appraisal then proper training is given to you?
A. Yes.
B. No.

Do you think performance appraisal is necessary in the

Organization?
A. Yes.
B. No.