A

RESEARCH PROJECT
ON
A STUDY OF PERFORMANCE APPRAISAL SYSTEM FOR TRAINING
NEED ASSESSMENT, PROMOTION AND MONETARY REWARD FOR
EMPLOYEES IN POWER & STEEL INDUSTRY OF HARYANA.
A CASE STUDY OF BHUSHAN POWER & STEEL (Chandigarh)

SUBMITTED TO:
KURUKSHETRA UNIVERSITY, KURUKSHETRA
In Partial Fulfillment for the Degree of Masters in Business
Administration
(Session 2009-2011)

Under Supervision of:

Submitted by:

Ms. Yuvika Singh

Faculty of M.B.A

Radhika Chauhan

Seth Jai Parkash Mukand Lal Institute of Engg. & Technology,

Radaur (Academic Session: 2009-2011)
CONTENTS
Declaration
Preface
Acknowledgement
Executive summary
Introduction
Profile of the study(Area\Organization)
Research Objectives
Theoretical Framework
Construct
Variables
Literature Survey & Review
Research Methodology and Analytical tools
Research Design
Sampling and Sampling Design
Analytical Tools
Data Collection Methods
Limitations of the Study
Results and Discussions
Policy Implications
Conclusion
Bibliography
Annexure

DECLARATION
I, Radhika Chauhan hereby declare that this project entitled A Study Of
Performance Appraisal System For Training Need Assessment, Promotion and
Monetary Reward For Employees Of steel Industry (Chandigarh) A Case study of
Bhushan power & steel ltd, at Chandigarh submitted by me for the award of MBA
(Final) of Kurukshetra University, Kurukshetra, is the original work conducted by me and
data provided in the study authentic to the best of my knowledge.
This report is not submitted to any other Institute or University for award or Degree of
MBA.

Radhika Chauhan
MBA (Final)

PREFACE
In the present scenario of competitive world there is a existence for a struggler.
Survivors, who have a will to come forward always success
Projects and training are like a bridge between theoretical and practical working. To
upcoming executions, this practical experience helps the students. To view the real
business world closely, which in turn widely influence, their conception and perceptions.
In todays scenario Employees are very important asset of the company, no company can
grow without the Employees. So every company would be examining the performance of
the employees. If the Employees of the organization are not perform well then company
will not grow. So every company wants to check the performance of its employees. If
Employees are performed well it would lead to high production with quality and create a
good image in the employees mind.
It is imperative for an organization to offer quality goods and services at the competitive
price at the time and place as per customer requirement. This may well be an elusive
dream unless organizations learn to tune their human resource. To remain competitive the
companies has to continuously develop policies for the welfare of the Employees.

ACKNOWLEDGEMENT
Gratitude is hardest of emotions of express and often does not find adequate words to
convey that entire one feels.
I am extremely grateful to the management of Bhushan power & steel at Chandigarh
for giving me opportunity to conduct the research and helps providing to complete my
research report.
At the outset, I would take this excellent opportunity to render my sincere gratitude to
H.R. DEPARTMENT HEAD. It is because of his kind assistance that I was able to
complete this project successfully.
I pay my heartily thanks to MR. A.N.SHARMA, for their pinpoint guidance. Their
enthusiastic collaboration with sustained interest made it possible to undertake this
project.
I am deeply indebted to Mr. Randhir Singh( Principal), Dr. Shalini Aggarwal
(H.O.D), and my research guide Ms. Yuvika singh (Faculty) of Seth Jai Prakash
Mukand Lal Institute Of Engg. & Technology, Radaur for allowing me to work on
this project work and for her kind help always.
I extend my deepest gratitude to all those persons who supported me all through my
project. My interaction with all these people has left a long lasting impression in my mind
that will influence my project and my behavior for all times to come.

RADHIKA CHAUHAN

EXECUTIVE SUMMERY
PERFORMANCE APPRAISAL is a tool for development of an employee. The
purpose of Performance Appraisal to assess a persons performance against set goals and
targets, Identifying his strengths and areas requiring improvement.
Performance appraisal is one of the most important processes of personnel management.
It helps in appraising and judging the performance of the workers. The purpose of
performance appraisal is to improve the organizations performance through the enhanced
performance of the individuals. It is a process of management not merely a small
function.
The concept of this project report is to check the performance appraisal system in the
companies.
The first part of the report is about the profile of steel industry and the profile of power
& steel company that has been undertaken for the study. And in next coming pages the
objective and justification of study will come. The third part consists of Research
Methodology which includes Sampling, Data Collection, and Analytical tool and the
Likely Limitations of the study. Last part covers the possible conclusion with
Bibliography.

INTRODUCTIO
N

OVERVIEW OF THE
INDIAN STEEL INDUSTRY

Steel Industry in India is on an upswing because of the strong global and domestic
demand. India's rapid economic growth and soaring demand by sectors like
infrastructure, real estate and automobiles, at home and abroad, has put Indian steel
industry on the global map. According to the latest report by International Iron and Steel
Institute (IISI), India is the seventh largest steel producer in the world.
The origin of the modern Indian steel industry can be traced back to 1953 when a contract
for the construction of an integrated steelworks in Rourkela, Orissa was signed between
the Indian government and the German companies Fried Krupp und Damage AG. The
initial plan was an annual capacity of 500,000 tones, but this was subsequently raised to 1
million tones. The capacity of Rourkela Steel Plant (RSP), which belongs to the SAIL
(Steel Authority of India Ltd.) group, is presently about 2 million tones..
The Indian steel industry is organized in three categories i.e., main producers, other major
producers and the secondary producers. The main producers and other major producers
have integrated steel making facility with plant capacities over 0.5 mT and utilize iron ore
and coal/gas for production of steel. The main producers are Tata Steel, SAIL, and RINL,
while the other major producers are ESSAR, ISPAT and JVSL. The secondary sector is
dispersed and consists of: (1) Backward linkage from about 120 sponge iron producers
that use iron ore and non-coking coal, providing feedstock for steel producers; (2)
Approximately 650 mini blast furnaces, electric arc furnaces, induction furnaces and

energy optimizing furnaces that use iron ore, sponge iron and melting scrap to produce
steel; and (3) Forward linkage with about 1,200 re-rollers that roll out semis into finished
steel products for consumer use.
According to International Iron and Steel Institute, the Indian steel industry was once
ranked 9th largest producer of steel in the world in 2002 and have gone up 4 places to
rank 5th in 2007. In 1991, the Indian government unanimously passed the new Industrial
Policy with the aim to unshackle the steel industry. The government has relaxed the rules
to allow foreigners to acquire up to 51% of any steel and iron companies in India. In
2007, Indias total steel production is around 53 million tones, up 7.3% from 2006. India
is the 2nd largest growing economy in the world. The automotive, consumer durables,
auto components, infrastructure, construction and housing sectors are showing double
digit growth which drives up steel demand. The total consumption of steel in India is
expected to reach 70 million tones by 2011 even assuming a conservative growth rate of
10%.

Strengths of Indian Steel Industry

Low labor wage rates

Abundance of quality manpower

Mature production base

Positive stimuli from construction industry

Booming automobile industry

Structural Weaknesses of Indian Steel Industry

Although India has modernized its steelmaking considerably, however, nearly 6%

of its crude steel is still produced using the outdated open-hearth process.

Labor productivity in India is still very low. According to an estimate crude steel
output at the biggest Indian steelmaker is roughly 144 tones per worker per year,
whereas in Western Europe the figure is around 600 tones.

India has to do a lot of catching in the production of stainless steel, which is

primarily required by the plant and equipment, pharmaceutical and chemical
industries.

Steel production in India is also hampered by power shortages.

India is deficient in raw materials required by the steel industry. Iron ore deposits
are finite and there are problems in mining sufficient amounts of it. India's hard
coal deposits are of low quality.

Insufficient freight capacity and transport infrastructure impediments too hamper

the growth of Indian steel industry.

10

Further Description: Indian Steel Industry Outlook to 2012

"Indian Steel Industry Outlook to 2012 gives a detailed analysis of the forces which
have shaped the Indian steel industry over the past years. The outlook for Indian steel
industry is very bright. India's lower wages and favorable energy prices will continue to
promise substantial cost advantages compared to production facilities in (Western)
Europe or the US. It is also expected that steel industry will undergo a process of
consolidation since industry players are engaged in an unfettered rush for scale. This is
evident from the recent acquisition of Corus by Tata. The deployment of modern
production systems is also enabling Indian steel companies to improve the quality of their
steel products and thus enhance their export prospects
It has broadly classified the finished steel product market into two categories - alloy and
non-alloy. It also covers the information on industry-wise steel demand, overall steel
consumption, production and trading market. Apart from this, it provides four-year
industry forecast (FY 2009 to FY 2012) on the following segments:
- Finished steel consumption
- Non-alloy steel products demand
- Per capita finished steel consumption
- Import of steel products
- Stainless steel production and consumption

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Requirements

A heavy dose of investment in manufacturing segment and training facilities

is required to build up a large number of skilled workers and artisans.
To sustain the growth trajectory in the sector, a purposeful review of policies
to rejuvenate Indian power & steel Industry.
Substantial levels of investment in terms of modern machines.
Rationalization of taxes on machinery and inputs.
Encouraging investment opportunities including FDI.
Strengthening of infrastructure for skilled manpower, design and testing needs
and to address raw material issues.

12

COMPANY
PROFILE

13

Growing from strength to strength

1970 - Started with very small initial outlay for manufacturing Door Hinges & later on,
Rail Track Fasteners.
1973 - Manufacturing facilities set up for Tor Steel and Wire Rod in Chandigarh.
1981 - Rolling Mill Project commissioned at Chandigarh for Round and Narrow Strips.
1985 - Backward Integration Project for Steel Melting facilities.
1986 - Upgrading of Mini Steel Plant with continuous casting and ladle furnace facilities.
1997 - Commissioning of Narrow Width Cold Rolling Project at Chandigarh.
1998 - Commissioning of Precision Pipe Project at Chandigarh.
2001 - Commissioning of Cold Rolling & Galvanizing Complex at Kolkata.
2002 - Addition of narrow width Cold Rolling facilities at Kolkata.
2003 - Expansion of wide width Cold Rolling facilities, ERW Water Pipes & Tubes down
stream facilities at Kolkata.
2004 - Further expansion of Cold Rolling facilities at Kolkata.
2005 - Commissioning of Orissa Project consisting of 4 DRI Kilns, Steel Making
Facilities, Coal Washery and 100 MW Power Plant.
2007 - Commissioning of further expansion of Orissa Project consisting of HR Coil Mill,
Steel making, Blast Furnance, Sinter plant, Coke oven plant, Oxygen plant and Lime &
Calcining Plant.
2008 - Implementation of further expansion in Orissa Project in progress. Consisting of
DRI Kilns, Coal Washery, Coal Mining, Power Plant & Steel Making facilities.

14

2009 - Commissioning of 3.5 million tpa Coal Washery, 146 MW Power Plant and 0.3
million tpa Sponge Iron under Phase III of Orissa Project.

15

Business Summary
Bhushan Steel & Strips Limited, India's Foremost Cold Rolled, Galvanized and Special
Steel producer having plants located at Sahibabad(U.P.) and Kapolei (Maharashtra) with
an annual turn over of Rs. 1500 Crores per annum which is likely to go up to Rs. 2500
crores in the year 2003-2004.
Bhushan Steel is leading the technological revolution in Indian Cold Rolled Steel
Industry today and defining new frontier of customer satisfaction. Be it through
technology and product upgrades, R&D efforts or stringent quality control measures,
Bhushan Steel & Strips Limited, India's For most Cold Rolled, Galvanized and Special
Steel producer having plants located at Sahibabad (U.P.) and Kapolei (Maharashtra) with
an annual turn over of Rs. 1500 Crores per annum which is likely to go up to Rs. 2500
crores in the year 2003-2004.
Bhushan Steel is leading the technological revolution in Indian Cold Rolled Steel
Industry today and defining new frontier of customer satisfaction. Be it through
technology and product upgrades, R&D efforts or stringent quality control measures,
company is consistent in its pursuit of value.
Bhushan Steel has earned Quality systems of International Standards by getting
Certification of QS- 9000 quality Management System based on the certification audit for
QS 9000 1998 edition conducted by Detnorske Veritas, Nether land. Looking to the
customer quality norms Bhushan steel is the first Cold Rolling plant in India who updated
itself by quality system certification QS 9000.

16

Bhushan Power & Steel Limited, a fully integrated 1.5 Million TPA Steel making
Company with turnover of INR3873 Crores (USD 950 Million) and 7 World Class ISO
9000 Certified State of the Art Plants at Chandigarh, Derabassi, Kolkata and Orissa in
India.
A leading manufacturer of flat, rounds and long products including value added products
with total steel value chain right from Coal Mining, Billets, HR Coils, Pig Iron, CR Coils,
GP/GC, Precision Tubes, Black Pipe/GI Pipe, Cable Tapes, Tor Steel, Wire Rod and
Special Alloy Steel.
Successfully commissioned 1.5 Million TPA Greenfield Steel and Power Plant in Orissa
with HR Coil making facility First in Private Sector in the State of Orissa. For the
Orissa plant, technology and equipments are procured from world-renowned companies
like Lurgi from Germany, ABB Ltd., SMS Demag, Siemens etc. Bhushan is selling its
Value added range of products in Secondary Steel through a large distribution network in
India (comprising more than 35 sales offices) and Abroad.
A rock-solid foundation combined with continuous up gradation and innovation has
ensured that we have constantly surpassed our goals. Our end-to-end portfolio offers a

17

wide spectrum of products with consistently superior quality. In addition to our export
thrust, we supply to fast-growing sectors like automotive, white goods, construction,
furniture, fasteners, telecommunication, etc
Bhushan Power & Steel Limited produces steel products for domestic users and industrial
concerns for infrastructure development. It offers hot rolled coils; steel billets; alloy steel
rounds for manufacturing seamless tubes; TOR steel products for concrete reinforcements
for various types of construction activities, such as buildings, roads, and bridges; wire
rods as a raw material for wire drawing units, electrodes, wire mesh, fasteners, and
hardware and automobile components manufacturers; pig iron for the production of cast
iron casting and steel; and sponge iron for making primary steel products. The company
also provides power plants; cold rolled coils, narrow cold rolled coils, and cold rolled
sheets for the manufacture of automobiles, white goods, electrical panels, furniture,
transformers, oil barrels and drums, and general engineering products; precision tubes for
power and industrial boilers, transformers, super heaters, automobiles and bicycles,
railway electrification, furniture, and general engineering applications; cable tapes for
telephone and other cables; and black pipes for the transportation of air, gas, fabrication
of structure, automobiles, cycles, and general furniture industries. In addition, it offers GI
pipes for domestic, agriculture, and industrial markets; galvanized coils and sheets to
make boxes, containers, ducting, and cooler bodies; and galvanized corrugated sheets for
industrial sheds, housing, and temporary structures. The company exports its products to
China, Singapore, Malaysia, Hong Kong, Indonesia, the Philippines, Dubai, Oman, Saudi
Arabia, South Africa, Thailand, Korea, Myanmar, Sri Lanka, Nepal, Bangladesh,
Vietnam, the United States, Nepal, England, Belgium, Turkey, and Angola, as well as
various African countries. Bhushan Power & Steel Limited was founded in 1970 and is
based in New Delhi, India.

18

Our Mission is to achieve clear identity and leadership globally in Steel production and
distribution by integration of complete chain of production starting from captive iron ore
to end user Steel products.
Our revolution in Steel production has helped us to carve a niche unique only to a market
leader. Every year passes by with new value additions and more accolades from our
customers - Locally and Globally. Our rising chart in respect of all-important parameters
of production and finance is a testimony to our claim.
In pursuing our mission, we at Bhushan Power & Steel Ltd. are guided by the following
values Quality- To be the best in quality. We aim and achieve excellence.
Technology - State of the art technology and product enrichment by continuous
Research and Development.
Customer Friendly - Our products are world class and more and more clients are
appreciating and using our products. We also undertake customized products with
values addition and enhancement.
Corporate Governance - We comply with all applicable laws and regulations. We
believe in maintaining clean environment and conservation of natural resources. We
contribute towards betterment of our staff and provide them with best of facilities.

19

 Environment Protection and Practice - We are adopting and implementing

pollution control measures as a matter of policy. Please read our thrust and directions
on this subject.

Our Commitments

To improve the quality of our products and complete integration of various stages
of production.

To be conscious towards quality and pricing of our products. We strive by

continuous research and development to make our products world class, having
distinct identity and uniqueness. Our customers get best value for their money.

To run the company profitably year after year.

A workforce motivated, skilled and well looked after.

A workplace safe, secure and hygienic.

To make our Environment Clean, Healthy and Hospitable.

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BOARD OF DIRECTORS

Sh. Sanjay Singal

Chairman & Managing Director
Sh. V.R. Sharma
Joint Managing Director
Ms Radhika Singal
Vice Chairperson
Whole Time Director (Admin)
Sh. R.P. Goyal
Whole Time Director (Commercial)
Sh. H.C. Verma
Whole Time Director (Marketing)
Sh.R.N.Yadav
Whole Time Director (Technical)
Sh. R.D. Batra
Director
Sh. Dinesh Kumar Behal
Director

21

Sh. Jimmy Mahtani

Director
Sh.AnilS.Supanekar
Director

Company infrastructure
REGISTERED & CORPORATE OFFICE NEW DELHI
Bhushan Power & Steel Limited
4th Floor, Tolstoy House
15-17, Tolstoy Marg, Co naught Place
New Delhi - 110001, India
Phone: 91-11-30451000
Fax: 91-11-23712737

KOLKATA OFFICE

CHANDIGARH OFFICE

Bhushan Power & Steel Limited

J.K. Millennium Center,
6th Floor, 46-D, Jawaharlal Nehru Road
Kolkata - 71
Phone : 033-22881710

Bhushan Power & Steel Limited

Plot No. 3, Industrial Area, Phase - I
Chandigarh - 160002
Phone : 0172-2650800 - 08, 2650800
Fax : 0172-2650808, 50885271
E-mail : bil_chd@satyam.net.in

ORISSA OFFICE

DERABASSI OFFICE

Bhushan Power & Steel Limited

Vill. Thelkoloi, P.O. Lapanga
Tehsil - Rengoli, Distt. Sambalpur
Orissa
Phone: 0663-2002583, 2002564
Fax: 0663-2590400

Bhushan Power & Steel Limited

Chandigarh Ambala Road
Derabassi, Distt. Patiala
Punjab
Phone : 01762-280113, 280147-148
Fax : 01762-506420

Distribution network

22

The company exports its products to China, Singapore, Malaysia, Hong Kong,
Indonesia, the Philippines, Dubai, Oman, Saudi Arabia, South Africa, Thailand,
Korea, Myanmar, Sri Lanka, Nepal, Bangladesh, Vietnam, the United States, Nepal,
England, Belgium, Turkey, and Angola, as well as various African countries.

Bhushan Power & Steel Ltd., produces a number of steel products for domestic users,
Industrial concerns etc. for infrastructure development at its manufacturing bases at
Chandigarh, Derabassi (Punjab), Kolkata and Orissa.

HR COIL

STEEL BILLETS

ALLOY STEEL
ROUNDS

TOR STEEL

WIRE RODS

PIG IRON

SPONGE IRON

POWER

CR COILS

NARROW CR COILS

CR SHEETS

PRECISION TUBES
(ERW and CEW)

23

CABLE TAPES

BLACK PIPE

GI PIPES

GP COILS / SHEETS

HR Coil
The hot rolled coils find application in manufacturing of cold rolled sheets, plates, narrow
width flat strips for black and GI pipes of various dia, flanges and structural steel e.g.
angles, channels etc.
HR Coils are produced at our Orissa Plant.

24

STEEL BILLETS
Steel Billets are semi finished length of Steel which can be worked in a rolling mill or for
forging operations. These are also known as bloom, slab, sheet bar. Billets are available
as round bar, flat bar, wire rod etc.
Billets are produced at our Chandigarh and Orissa Plants.

ALLOY STEEL ROUNDS

Alloy Steel rounds are used for manufacturing seamless tubes. These are also used for
general Engineering purposes.
We produce Alloy Steel rounds at our Chandigarh
plant.

TORSTEEL
Applications - The product finds its uses in various types of Construction activities like
Buildings, Roads, Bridges etc where it is used for Concrete Reinforcements. Other names
for Tor Steel are twisted steel bar, CWD bar, CTD
Bar, deformed steel bar etc.
Our TOR Steel bars confirm to IS:1786 in
dimensional tolerances but in actual exceeds the
specifications.
TOR STEEL Bars are manufactured at our Chandigarh plant.

25

WIRE RODS
We are manufacturers of IS-2062 and Electrode Quality in our Plant located at 3,
Industrial Area Phase-I, Chandigarh.
Applications: Wire Rod is used as raw material by Wire Drawing Units, Electrodes, Wire
Mesh, Fasteners, Hardware and Automobile components manufacturers. We meet
stringent quality parameters.
We manufacturer Wire Rod from superior quality Billets produced by our own Integrated
Steel Plant situated at Jharsuguda (Orissa) to ensure high strength and long life. The sizes
of Wire Rod being manufactured by us are from 7.5mm to 13mm.

Pig Iron

A product in solid (lumpy) form obtained upon solidification of hot metal in pig casting
machine. Pig Iron is used for production of cast iron casting and steel. Pig Iron is
manufactured at our Orissa Plant.

26

SPONGE IRON
Applications: Sponge iron is a basic raw material for making primary steel products.
Production at Orissa Project

POWER
100 MW Power Plant is operational at our Orissa Plant.
The excess power generated is being sold through state power grid
.

CR COILS

Cold Rolled Coils are used in the manufacture of

Automobiles, White Goods, Electrical Panels, Furniture, Transformers, Oil barrels and

27

drums and general Engineering products. CR Coils are produced at our Chandigarh and

Kolkata plants.
BLACK PIPE
Black pipe is used for transportation of air, gas,
fabrication of structure, automobiles, cycles and
general furniture industries. Varnished pipes are
used for general engineering industries.
Black pipe is manufactured at our Kolkata plant,
and Plot No.03, Chandigarh plant.

NARROW CR COILS
White Goods, Electrical Panels, Furniture, Transformers, Oil barrels and drums and
general engineering products.
Narrow CR Coils Narrow CR Coils are used in the manufacture of Automobiles,
Precision Tubes, Cable Tapes, are produced at our Chandigarh and Kolkata plants.

28

CR SHEETS
Cold Rolled Sheets are used in the manufacture of Automobiles, White Goods, Electrical
Panels, Furniture, Transformers, Oil barrels and drums and general engineering products.
CR Sheets are produced at our Chandigarh and Kolkata plants.
CABLE TAPES
Cable tapes are used as Armour in Telephone and other Cables.
Cable tapes are available in strip width of 19mm to 65mm, thickness of 0.30 to 0.80mm,
inner diameter 450-800 mm, Coil weight 50-200 Kg.
We manufacture cable tapes at our Kolkata and Derrabasi works.

GI PIPES

29

The product finds its uses in a number of applications- domestic, agriculture and
Industrial.
Galvanized Pipes are available in the sizes ranging from 10mm NB to 100 mm NB, Strip
thickness 1.80 mm 5.40 mm
We manufacture GI Pipes at our Derabassi (Punjab) Plant.

GP COILS / SHEETS
Applications: Galvanized Coils and Sheets are used to make Boxes, Containers, Ducting,
Cooler Body, etc.
GP Coils are manufactured at our Kolkata Plant.

GALVANIZED CORRUGATED SHEETS

30

Corrugated sheets are extensively used for Industrial sheds,

housing, temporary structures etc.

31

INTRODUCTIO
N TO PROJECT

32

PERFORMANCE MANAGEMENT SYSTEM3

This system lays down a target setting process where by the organization/ Business
goals are cascaded down to unit/ function/ department and individuals to
Organizational/ functional goals. Achievements of individual targets would lead to
attainment of Organizational/ functional goals, which is the driving force behind the
Performance Management System. The frequency of appraisal system may be
quarterly, half yearly or annually. Coaching and counseling given to the employees
after report given by the assessor. The system will help individual establish their
targets. Processes are laid down for assessors to provide integral and important part of
system. The system also provides for targets realignment during mid-year.
In order to attain objectivity in the appraisal process, individuals would have six to
ten targets in their broad areas with clear measurement indicators agreed in the
beginning of the year would lead to creditability of this process.
This system is an on going interactive process, which uses the multiple sources of
feedback from the supervisors, colleagues and sometimes-self appraisal. Sometimes
there is direct involvement of the customer. It is of flexible format and not static like
performance appraisal. The team participation of the entire employee is necessary
everybody should take active participation in performance management system to
make it a success. It is linked to strategic priorities. After the performance
management system has taken place the results are being measured following
different methods. It is a process, which is retrospective and prospective in nature.
Performance appraisal is an annual event, which is done annually. It is done
according to hierarchy of the organization and that to from top to bottom. There is no
involvement of the customer for the appraisal. The most static format is being
followed in the performance appraisal. It is individual oriented and doesnt involve all
the employees of the organization. It is fully based on the activities, which only focus

33

on the job description. Only results are achieved without any qualitative and
quantitative analysis. It is retrospective in nature.

PERIODICITY OF THE PERFORMANCE MANGEMENT

SYSTEM:5
The maximum period for the measurement of the Performance Appraisal is one year. It
depends on the organization when it wants to calculate the performance of the company,
it may differ from company to company. The company chooses the period on the benefits
of the organizations system.

DIFFERENCE BETWEEN PERFORMANCE APPRAISAL AND

PERFORMANCE MANAGEMENT SYSTEM:6
Performance Appraisal
No customer involvement

Performance management
Direct customer involvement

Static format

Flexible Format

Activities Based

Objective/ Competencies Based

Results Only

Result/ process Measurement

Job Description Focus

Linked To Strategic Priorities

Annual Event

Team Participation

Top Down Evaluation

On Going Interaction

Retrospective Evaluation

Multiple Resources of feedback

Retrospective and Prospective

Performance Appraisal is related to the targets assigned to the employee.

Performance Management is related to development of the employees.

34

PERFORMANCE APPRAISAL1
Performance appraisal is a tool for development of an employee. The purpose of
Performance Appraisal to assess a persons performance against set goals and targets,
Identifying his strengths and areas requiring improvement. Data generated through
Performance Appraisal may be sued to: Determine increments
Reward a manager , it may be monetary or non monetary reward
Identify training need assessment and development requirements
Career progression
Promotion

PERFORMANCE APPRAISAL
Performance appraisal is one of the most important processes of personnel management.
It helps in appraising and judging the performance of the workers. The purpose of
performance appraisal is to improve the organizations performance through the enhanced
performance of the individuals. It is a process of management not merely a small
function. It is not a Scheme devised by the personal department for managers to use in
accordance with the directives of that department and generating completed forms, which
are stowed away in employees dossiers and then forgotten.
Acc to Dale Yoder, 7 Performance Appraisal refers to all format procedures used in a
work organization to evaluate personalities and contribution and potential of group
members.
Acc to flippo,3 Performance appraisal is the systematic, periodic and an impartial rating
of an employees excellence in matters pertaining to his present job and his potential for a
better job.

35

Performance appraisal is a natural process of management, it basically

comprises of three functions:1.
2.
3.

Measuring Performance
Improving Performance
Exercising Leadership

Measuring Performance:- Measuring performance is in accordance with the edge

if you cant measure it you cant manage it. The purpose of measuring performance
is to indicate not only where things are not going acc to plan but also to identify
where things are going well so that steps can be taken to built on success.
Performance is a means for creating and maintaining a : Climate and success in the
organization.
Improving Performance:- Building a climate of success involves taking specific
steps to improve the performance of individuals or teams. Because managers depend
on the performance, they have a major and continuing responsibility to take whatever
action is necessary to improve it. This is entirely a natural process of management and
whenever any one completes a task or project good managers will consciously or
unconsciously ask themselves.
How well was that done?
Could it have been done better?
Did I pick the right person?
Did I brief that person properly?
In what ways, if any, does this person need to improve?
What guidance or help can I provide this person to ensure that better results are
achieved next time?
Performance appraisal aims to provide for more systematic and thought through
conclusion by reference to specific facts and behaviors, which have produced identifiable
results.

36

 Exercising Leadership:- Leadership is about encouraging and inspiring individuals

and teams to give their best to achieve a desired result. Managers as leaders have to
achieve the task. Achieving the task involves leaders tin getting answers to the
following questions:
What needs to be done and why?
What results have to be achieved?
What problems have to be overcome?
Is the solution to these problems straightforward or is there a measure of
ambiguity?
Is this a crisis solution?
What is the time-scale for completing the task?

These functions have their specific importance in process of performance

appraisal. The

essential feature of performance appraisal is to provide a flexible mean for managers, and
those whom they manage, to operate a partners but within a framework that describes
how they can best work together.

37

Contents of Performance Appraisal :7

The contents of Performance appraisal needs to be examine under four main headings:
What is to be appraised-the factors to be taken into account by appraisers and
appraises.
How appraisal will take place- the methods to be used.
When formal appraisal will be carried out-at yearly, half yearly or even quarterly.
What needs to be done to ensure the appraisal is continuing process, to use counseling
and coaching skills to improve skills and performance.

What is to be appraised?
It is very important for a manager to know what all things are to be appraised; he should
be very clear about the things to appraise. In effect there are four things managers need to
look at when he is appraising performance.
Inputs What the job holders bring to the job in the shape of their knowledge and
skills i.e. attributes which are defined as what people need to know and be able to do
to perform their job effectively.
Process: The behaviors of jobholders in applying their knowledge and skills to the
delivery of results. These are sometimes referred to as competencies. These described
the behavior required of people to carry out their job effectively.
Outputs: The measurable or at least observable results of the behavior exhibited by
jobholders.

38

 Outcomes: The ultimate impact of the jobholders on the result of their teams or
departments and their overall contribution to achieving the objectives of the
organization.

How should appraisal take place?

The foundation of performance appraisal is provided by what the jobholder is
expected to do in a job description and by reference to agreed objectives the
performance appraisal process built on this foundation can be described as a cycle
consisting of
1.
2.
3.

Preparation for the appraisal discussion

The formal appraisal discussion
Informal reviews.

Discussion

Informal
Review

Preparation

39

THE PERFORMANCE APPRAISAL CYCLE8

40

The preparation section of the cycle covers the pre-meeting work of the appraiser and the
appraise who both review results in the light of previously agreed objectives and decide
on any matters they want to raise at the appraisal discussion.

The formal appraisal section of the cycle is concerned with:8

Conducting the appraisal discussion

Overcoming any problem emerging during the appraisal.

Concluding the appraisal by recording the results, agreeing action plans and, as
necessary, obtaining another view from the appraisers manager to ensure that a fair
and thorough appraisal has taken place.

The information review section of the cycle consists of:

Information discussions that take place as and when required and may involve
updating objectives or performance plans;
The process of coaching and counseling, which help to implement the development
and performance improvement programme.
When appraisal should take place?
Formal appraisal discussions are often held annually but some fast moving
organizations prefer to have them twice a year or even more frequently, say at
quarterly intervals. When employees are working on some projects, as in a
consultancy firm, there may be an appraisal after every assignment.
Ensuring that appraisal is a continuing process
To ensure that appraisal is not just seen as a one- a-year event to be got over as
quickly as possible it is necessary to emphasize the continuing nature of the
process in briefing and training. Appraiser & appraiser should understand that
feedback & appraisal are in effect everyday occurrences.

41

PROCESS OF PERFORAMNCE APPRAISAL2

Performance Planning
Managing Performances
Reviewing Performances
Rewarding Performances

The process can be shown through a figure, which would make the process more clear;
Strategic Planning

Performance Planning

Rewarding Performance

Managing Performance

Reviewing Performance

Process of Performance Appraisal2

Performance Planning: - A performance standard setting is the key task. These should
have been defined in outcome terms in the why part of the accountability/ task definition.
Standards should preferably be quantified in terms, of level of service or speed of
response.
A performance standard should take the form of a statement that performance will be up
to standard if a desirable, specified and observable result happens.

42

Measuring Performance: Measurement is the key aspect of performance appraisal on

the ground that If you cant measure it you cant improve it. It is pointless to define
objectives or performance standards unless there is agreement and understanding on how
performance in achieving these objectives or standards will be measured.
Reviewing Performance: Reviewing the performance means comprising the actual
performance with the target settings or performance standards as set up by the
organization policies. It is very important part of performance appraisal process as it also
forms the basis for rewarding the performance.
Rewarding Performance: Rewarding the performance is the last step by giving the
employees incentives according to the work done by them. The incentives may be
monetary or non-monetary. Monetary incentives are in form of increments in wages,
bonus and many others. Non-monetary incentives provided are appreciation of work,
level of trust and faith of employees.

Objectives of Performance appraisal10

Objectives mean something which ahs to be accomplished a point to be aimed at. There
are two main types of objectives of performance appraisal.
(1)

Work/ Operational Objectives

(2)

Development/ Personal or Learning Objectives.

Operational Objectives:
Consistency: with the values0 of the organization and departmental and
organizational objectives.
Precise: clear and well defined, using positive words.
Challenging: to stimulate high standards of performance and to encourage progress.
Measurable: they can be related to quantified or qualitative performance measures.

43

 Achievable: within the capabilities of the individual- account should be taken of any
constraints which might affect the individuals capacity to achieve the objectives.
Agreed: by the manager and the individual concerned- the aim is to provide for the
ownership, not the imposition, of objectives, although there may be situations where
individuals have to be persuaded to accept a higher standard than they believe
themselves to be capable of attaining.
Time related: achievable within a defined time scale.
Teamwork oriented emphasizes team work as well as individuals achievement.
Some specific positive objectives of performance appraisal are:
To review past performances.
To assess training needs.
To help develop individuals.
To audit the skills within an organization.
To set targets for future performance.
To identify potential for promotion.
Acc to Alan Fowler in P.M. Flur
Staff works best when they know what they have to do, how well they have to do it, and
how ell are thought to have done, so they need to talk to their managers at least once a
year about this and their managers need to take their staffs views into account when
setting work goals and deciding who needs what training.
All types of objectives are equally important for the organization, if the objectives set are
inappropriate all the organizational work would be mislead.

Aims & Principals of Performance Appraisal9

Aims:
To increase mutual understanding of preferential requirements.
To note and recognize achievements.

44

 To note and analyze any problem in meeting requirements.

To provide the opportunity to discuss aspirations and concern about career
prospects and present job.
To definite and redefine future objectives.
To agree action plans.
To agree self-development and training needs.
Principles: 9
Concentrating on developing strengths as well as addressing performance
problems.
Based on open and constructive discussions.
An everyday and natural management process, not just one a year event and not
just a form filling exercise.

Benefits of Performance appraisal:4

For the organization:
The organization comes to know the true position of the employees
working capacities and the problems they face while working in the organization. This
performance appraisal system also acts as a motivating factor for the employees, which
helps the organization to get better results.
For the appraise:
The appraise fells themselves an important part of the organization,
they get a chance to express their views in front of their superiors; they get a platform to
express their ideas. The employee comes to know the truth about:
To what extent they have achieved their objectives.
IN what respect their work has been most successful.
Are their any aspects of their work, which they have not completed?
Are many other question, which make them assess rightly

45

Performance Barriers:26
There are many barriers in performance these may differ from individual to individual;
these are:
Lack of applause
Unfinished business
Lack of environment
Envy
Lack of applause: Applause means appreciation, it is very important for the
effective performance expected from the employees, if they doesnt exist a proper
level of applause this hinders the performance of the employees.
Unfinished Business: Unfinished business is also barrier in the performance of
the employees; they do not get all the necessary requirements that they need to
work up to their optimum capacity.
Lack of environment:

Environment is the most important factor for the

performance. If there doesnt exist the healthy work environment in the

organization if directly hinders the performances of the employees in the
Organization Environment is one of the most effective barriers in the path of
performance.

46

 Envy: Envy in the most critical barrier regarding performance, it occurs when
anybody gives high performance. This is just because due to the capacity to work
or the speed of doing the work but still is very critical barrier in the path of
performance.

DIFFERENT TYPES OF APPRAISAL SYTEMS24

Feedback system is designed to build up confidence to reinforce desired behavior, clarify
problems, improve self-awareness and give recognition and ultimately to improve
performance. Different types of feedback or appraisal system are as follows:
In these areas their actual performances are compared with their actual performance acc
to the above mentioned scales
90-degree appraisal system
180-degree appraisal system
360-degree appraisal system
Self Appraisal

90-degree appraisal system:

47

This is the appraisal system in which the superiors of an employee appraise the
performance. The superiors are the persons who inspect their work and know how well
are they fulfilling your responsibilities. In simple words it is a systematic evaluation of
the individual with respect to his performance on the job and his potential for
development. This system is concerned with determine the differences of the
performance among the individuals working in the organization.

180-degree appraisal system:

This is the appraisal system in which the peers or the people working at same
level appraisal the performance of the employee. This system is not practiced much in the
organization, as the people working at same level dont want others to rise so they do not
appraise the performances of other truly. They discard the performance of each other and
appraise themselves. Due to all these reasons this in not an effective system of appraisal.

360-degree appraisal system:

This is a multirater feed back process; it is one of the most modern and powerful
appraisal systems. It is sued by a number of organizations worldwide. Mutlirater
appraisal or 360-degree-performane appraisal is a powerful method to identify the
employees strengths and weaknesses fro the feedback of an individual.
This system is called mutlirater as the feedback is taken from multiple individual who
interact with the appraised in the terms of work and hierarchy. The people who work with
the appraised are requested to provide a feedback and this is then evaluated. It involves
not only the superior but also the peer and subordinate also, not to forget self appraisal
as well. This is thus a more complete and accurate appraisal system.
Multi rating involves the following steps:
1.

Questionnaire Building is the first carried out to create the questionnaire that
will be used to accurately measure various competencies.

48

2.

Collecting of feedback from the relevant quarters i.e. superior, peers, self,
subordinates is carried out next.

3.

Normalization of values is then carried out to remove the anomalies introduced

by lenient or stringent appraisers.

4.

Number Crunching is done once the responses are received so as to extract

reports based on the weights given to the responses of the employee.

5.

Report Analysis is them done to analyze the implication of the contents of each
report.

Self Appraisal
Self-appraisal means getting individuals to analyze and assess their own performance as a
basis for discussion. This appraisal process is likely to generate less inhabited and more
positive discussion to provide a better climate for identifying problems, that are mostly
considering solutions and helping individuals to realize their potential and develop their
career prospects. Self appraisal can reduce defensiveness by encouraging appraises to
take the lead in reviewing their own performance, rather than having an assessment
imposed on them, and it focuses their attention on the key performance and development
issues with which they should be concerned.
This is an effective system of appraisal and is followed in large number of organization
worldwide. Some of the advantages of Self appraisal can be summed as follows : It overcomes many of the traditional problems of performance appraisal by
improving the flow of relevant accurate information to appraisers.
It assists in resolving uncertainties about criteria for job success.
It is likely to reduce defensive behavior.

49

 It can have a positive effect on employee motivation by involving employees in an

active way in the appraisal process.
It encourages better preparation for appraisal interviews.
It helps to develop more positive attitudes to performance appraisal.
It generates a proactive approach to development.

90-degree Vs Multirater System

90-degree system depends on the feedback of one person, the superior. This often
leads to employee complaints about bias and nepotism. Also feedback from only one
person is rarely comprehensive, since it gives only one view of the whole picture. Also,
comments fly one way, with employees never having an opportunity to comment on or
compliment their superiors. All this leads to low employee motivation.
On the other hand. Multi rater system, if carried out intelligently, can handle these
issues. Due to the number of people who give feedback, most bias issues are averaged
out. Feedback thus gathered would give a more complete picture sine it includes all
views. Employees can also motivate since each one feels that their views are considered
and respected.

50

51

TYPICAL RATER ERRORS26

RATING BIASES
FIRST IMPRESSION
STEREOTYPING
HALO EFFECT
HORN EFFECT
CENTERL TENDENCY
STRICT OR LENIENT RATING
LATEST BEHAVIOR
SPILLOVER EFFECT

52

COMPANYS ACTUAL PRACTICE

In BHUSHAN POWER & STEEL LTD Performance Appraisal of employees is
calculated twice in a year.

In BHUSHAN POWER & STEEL LTD new and traditional method of appraisal
system are used. The new management system was started by the initiative and
involvement of the top management with a drive to excel and to counter competition
with domestic as well as foreign suppliers of equipment.

M.B.O. (MANAGEMENT BY OBJECTIVES) & CRITICAL INCIDENTS

METHOD both methods are used by the organization.
POST APPRAISAL INTERVIEW is also taken from the employees.
When the increments of the employees are due they are appraised by the head of the
department of the concerned head and their self appraise is also considered to reach
the appropriate measurement.
The incensement of the employees is calculated on the basis of their performance
towards their work, conduct and discipline etc. for the good result of the
performance the employee should be regular towards the job assigned to him.

Absenteeism also counts. If the remain absent from the work, disobeys his
Superiors colleagues and other staff members then he will not be able to reach the
standard fixed by the company.

53

For the good results of the Performance Appraisal System the employee must be.
His punctuality toward the work.
His responsibilities towards the job should be followed appropriately.
His intention towards the work should be for the benefit of the company.
His activeness and alertness plays the major role to reach the standard.
Experience of the person also affects the Performance appraisal System.

Standards fixed by the company for the system:

QUALITY
QUANTITY
RESPONSIBILITY
INTENTION
COST CONSCIOUSNESS
TARGETS
TIME FACTOR

Factor by which the performance appraisal of the employees is affected:

Absenteeism:
The performance appraisal is recorded annually both for the workers as well as
staff members. But the increment has been fixed depending upon the grades of the
employees.
The increment for the staffs is not fixed. The increment to the staff members is
given according to the grades assigned to them. The grading level of the staff
members from S1 to S5 and for the managers from M1 to M7 depends upon the
individuals performance. It is increased depending upon performance of each

54

employee. The increment should be of that much amount, which is fruitful in

increasing the performance of the employees in future.

Performance appraisal of the: JUNIOR MANAGER AND LOWER

LEVEL EMPLOYEES
The BHUSHAN POWER & STEEL LTD is flowing a different way for the
measurement of performance appraisal of the junior manager and lower level
employees from workers.
The company will first of all measure the key performance of the junior manager
and lower level employees.

IT INCLUDES

The main tasks, done by the person for the benefit of the company.

What comments he has received from the Head of the Department?

What is the behavior of the employee on the job?

What are the career objectives of the employee?

What is the experience of the employee?

There are lots of factors that will also help him to improve his overall
performance and the factors are as follows:
The working environment of the company should be friendly so, that the
people working there are able to work coolly.
Is the behavior of the staff members polite towards the other staff members
and their subordinates and the Head of the Department?
There should be proper training programs for the upliftment of the staff
members threw which they can improve and do the job appropriately.

55

 The staff members should be provided with best materials for the best
production.
If the staff members are being provided with the facilities, which are helpful
for the family, also the staff members will be more divorced towards the
company.
There should be active participation of the members in the cultural activities.
There should be no distinction in the salary given to the male and female staff
members.
The staff members should choose the appropriate area for their development: That area
should be selected first which is of the most priority rest should be taken aft wards. The
training and the development programs should be identified properly and then the
concerned person should be given training.
There should be no distinction in the salary given to the male and female staff
members.
The staff members should choose the appropriate area for their development: That area
should be selected first which is of the most priority rest should be taken aft wards. The
training and the development programs should be identified properly and then the
concerned person should be given training.

56

RESEARCH OBJECTIVE
Main objective
1. To study the effectiveness of appraisal system on training need assessment,
promotion, monetary reward in the organization

Sub objective
1. To analyze the techniques used for appraisal system in the organization
2. To study the impact of appraisal on efficiency, skills, confidence and morale of
the employees.
3. To study the benefits realized as a result of performance appraisal.
4. To study the attitude of employees towards appraisal system.

57

58

Theoretical Framework
Construct of the study:
Performance Appraisal System
Effectiveness of performance appraisal
Variables:
Dependent variables:

Promotion

Training Need Assessment

Monetary Reward

Independent variables:

Commitment

Work Culture

Organization Culture

Attendance of the employees

59

LITERATURE REVIEW
Once the research problem is formulated, the researcher undertakes an extensive
literature survey. The literature survey conducted here includes the academic books and
websites from internet.

Dewidi R.S. Managing human resources personnel management 1: (I have

taken data related to the PA. & also explain why performance appraisal & done.)

Prasad L.M. Human Resources Management2 (I have taken data from this
book that what is the process of performance appraisal )

Rao P.Subba, Essential of Human Resource Management & IR 3 The pages

of this book help in understanding the meaning of performance management
system and what the benefits of this are.)

Deunzo

David

A Robbins

Stephen,

Personnel

Human

Resource

Management4: (Gives the details of the benefits of performance appraisal of the

employees.)

Khurana Ashok (2006-2007), Human Resource Management5( given the

details of periodicity of performance appraisal system)

K. Ashwathapa, Performance Appraisal & Job Evaluation, Human

Resource Management & Personal Management6 (tells the difference
between Performance appraisal and performance appraisal system)

Rao V.S.P. Human Resource Management(Text and Cases) 7 (gives the

information of contents of performance appraisal)

Tripathi P.C. Human Resource Management Concept and Issues 8 ( it tells

the performance appraisal cycle)

60

Sharma A.M, Industrial Relation9: (This page helps in define the aim &
principal of performance appraisal to maintain the good relation between the
employees in the organization.)

Chhabra T.N.(1998) Human Resource Management 10( This page helps in

getting information about objective of performance appraisal)

Kothari C.R. Research Methodology- Methods & Techniques 11: (This page
help in understanding the research methodology, which is included in the report.)

Donald R. Cooper and Pamela S. Schindler, Business Research

Methodology14 (From this book I have got the various research design DATA
Collection methods)

Websites:

www.h.r-guide.com15 (It reveals that company should use principal for appraisal
system and how we conduct effectively.)

http://www.appraisal.naukkrihub.com/-37k16 (from this website I took the

information about performance appraisal system of the organizations.)
http://www.bhushanpowersteel.com/about_bhushanpowersteel.asp17

(from

this I have taken the introduction of the company)

http://www.indiamart.com/company/view-catalog.cgi.asp18 (History of the

company is studied)

http://www.indiamart.com/company/view-catalog.cgi asp19 (Company

philosophy, company saga, company mission has been studied)

http://www.indiamart.com.asp21(information about company product range is

taken)

http://www.bhushanpowersteel.com/23(Information
infrastructure)

61

about

company

Magazines & journals:

By D.C. Koning, (5 aug.2004) 24Employee Appraisal Indian

Management.(Information about types of performance appraisal system)
By Apporva Chandra, (11 April 2004)25 (Reward Management, way the world
pays Human Capital.(Information about monetary rewards provided to the
employees)
H.R.M. Review26 , Nov.2005( barriers & errors in performance appraisal)
H.R.M. Review 27, Aug..2007
University News28 , May2005
M.B.A. Review 29, JUNE2009

62

RESEARCH
METHODOLOG
Y

63

Research Process13
1
OBSERVATION
Broad area of
research interest
identified

3
PROBLEM
DEFINITION
Research
Problem
Delineated

2
PRELIMINARY
DATA
GATHERING
Interviewing
Literature Survey

4
THEORETICAL
FRAMEWORK

5
GENERATION
OF
HYPOTHESES

Variables clearly
identified and
labeled

6
SCIENTIFI
C
RESEARC
H DESIGN

7
DATA COLLECTION,
ANALYSIS AND
INTERPRETATION

8
DEDUCTION
Hypotheses
substantiated?
Research
question
answered?
NO

Yes

9
Report
writing

64

10
Report
Presentat
ion

11
Manager
ial
decision
making

RESEARCH METHODOLOGY11
The procedure adopted for conducting the research required a lot of attention as it has
direct bearing on accuracy, reliability and adequacy of results obtained. It is due to this
reason that research methodology, which we used at the time of conducting the research,
needs to be elaborated upon. Research Methodology is way to systematically study &
solve the research problems. If a researcher wants to claim his study as good study, he
must clearly state the methodology adopted in conducting the research so that it may be
judged by the reader whether the methodology of work done is sound or not.
The Research Methodology here includes: 1.

Meaning of research

2.

Research problem

3.

Research design

4.

Sampling design

5.

Data collection method

6.

Analysis and Interpretation of Data

Meaning Of Research11
Research is defined as a scientific & systematic search for pertinent information on a
specific topic. Research is an art of scientific investigation. Research is a systematized
effort to gain new knowledge. It is a careful investigation or inquiry especially
search for new facts in any branch of knowledge.

65

through

Research Problems
The first step while conducting research is careful definition of Research problem. The
present project has been undertaken to do the Study of Performance appraisal system for
Training Need Assessment, Promotion and Monetary Rewards for employees oft
BHUSHAN POWER& STEEL LIMITED, Chandigarh.

Research Design14
A research design is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in
procedure. Research design is the conceptual structure within which research is
conducted. It constitutes the blueprint for the collection measurement and analysis of
data.

TYPES OF RESEARCH
DESIGN

EXPLORATORY
RESEARCH
DESIGN

DESCRIPTIVE
&
DIAGNOSTIC
RESEARCH DESIGN

EXPERIMENTAL
RESEARCH
DESIGN

Research Design used:

Descriptive Research Design is used. It includes description of Performance Appraisal
System used by the company.
66

Scope of the study:

The scope of the study is very wide because it includes the performance appraisal
and development of the employees in which training is also included.

Area of Study:
My area of study for project report is BHUSHAN POWER & STEEL
Limited,chandigarh.

SAMPLING AND SAMPLE DESIGN11

SAMPLING:
Sampling can be defined as the selection of some part of an aggregate or totality
on the basis of which a judgment or inference about the aggregate or totality is made. In
other words it is the process of obtaining information about an entire population by
examining only a part of it. The process of sampling is used for various reasons Sampling saves time and money. It is usually less expensive and produces results
at faster speed.
It provides more accurate information.
It enables to estimate the sampling errors and thus assists in obtaining information
concerning characteristics of population.
It also enables greater speed of collection of data.
The ultimate test of sample design is how well it represents the characteristics of the
population it purports to represent. In measurement terms the sample must be valid
which depends upon

Accuracy It is the degree to which biasness is absent from the sample.

Precision It represents how well the sample represents the population in

all respect.

67

SAMPLING AND SAMPLING DESIGN

Sampling can be defined as the selection of some part of an aggregate or totality on the
basis of which a judgment or inference about the aggregate or totality is made. In other
words it is the process of obtaining information about an entire population by examining
only a part of it.

Universe
The organization selected for the study is a private sector unit Bhushan
power& steel. Ltdat Chandigarh.
Sample Units:
The sample size was 110 employees including both male and female.

Sampling Design
The respondents have been selected by using Random Selection among different
levels, different authorities and different departments.

68

DATA COLLECTION14
The best way to record or to measure the performance is to gather the information related
to the manpower, training and development programs, performance appraisal techniques,
period of the performance management system etc. The present study is based on both
secondary as well as primary data. The Head of Departments of the company were
interviewed informally to gather the information.

Collection of data:
Primary Sources

Secondary Sources

Primary Sources: - The primary data is collected by various approaches so as

to give a precise, accurate, realistic and relevant data. The main tool in gathering
primary data was

Observation

Interview

Survey

Secondary Sources: - The secondary data as it has always been important for
the completion of any report provides a reliable, suitable, adequate and specific
knowledge.

Magazines

Text books

69

Analysis and Interpretation of Data

The data collected in the aforesaid manner have been tabulated in condensed form
to draw the meaningful results. The different techniques are adopted to analyze the data.
All the data and material is arranged through internal resources and the last part of the
project consists of the conclusions drawn from the report, a brief summary and
recommendation are giving the final touch to the report by stating a conclusion

LIMITATIONS OF THE STUDY

Except the supreme power, the Almighty, no one is impeccable and prowess enough to
accomplish anything without any faults and limitations. A research is no exception. No
study is devoid of certain shortcomings. Some problems encountered in this study are
under mentioned:

Some officers were too busy to give a sincere response to investigators & hence
their response may not relate to real picture.

Manager some time denied disclosing some important financial matters, which
can be helpful in this study.

Due to paucity of time, it could not possible to reach the entire executive to
collect their opinion.

The study is confined to a select group of executives in a particular manufacturing

industry and it may not equally apply to the general executives class of country.

70

Findings of study are based on the assumptions that respondents have divulged
the correct information.

Persuading the respondents to answer the questionnaire was not an easy task.

RESULTS AND DISCUSSION

Q.1

Are you aware about the Performance Appraisal System in the

Organization?

No. of responses

Yes

No. of respondents 83

No
17

71

Interpretation:
o 83% employees were aware about performance appraisal system in the
organization.
o 17% employees were not aware about performance appraisal system in the
organization

Q.2
Response
Respondents

Does the appraisal system apply at all levels in the organization ?

S. Agree
30

Agree
26

Neutral
4

72

Disagree
24

S. Disagree
16

Interpretation:
o 30% employee are strongly agree and said that appraisal system apply at all level.
o 26% employee are agree and said that appraisal system apply at all level.
o 4% employee are neutral appraisal system apply at all level.
o 24% employee is disagreeing and said that appraisal system is not applied at all
level.
o 16% employees are strongly disagree and said that appraisal system is not applied
at all level.

Q.3

Do you think Performance Appraisal is continuous process ?

Response
Respondents

S. Agree
26

Agree
30

Neutral
4

73

Disagree
26

S. Disagree
14

Interpretation:
o 26% employees are strongly agree and said that appraisal system is ongoing
process.
o 30% employees are agree and said that appraisal system is ongoing process.
o 4% employees are neutral.
o 26% employees are disagree and said that appraisal system is not an ongoing
process.
o 14% employees are strongly disagree and said that appraisal system is not an
ongoing process.
Q4. What should be the frequency of Appraisal System in your opinion what should
be the timeing ?

74

Interpretation:
o 12% employees are in favor of frequency of appraisal system quarterly.
o 40% employees are in favor of frequency of appraisal system half yearly.
o 20% employees are in favor of frequency of appraisal system yearly.
o 10% employees are in favor of frequency of appraisal system two year.
o

18% employees are in favor of frequency of appraisal system after five year.

75

Q.5

Are you satisfied with the method which is currently used for Performance
Appraisal?

Response
Respondents

S. Agree
26

Agree
30

Neutral
4

Disagree
26

S. Disagree
14

Interpretation:
o 50% employees are strongly agree about performance appraisal system used in
the organization.
o 30% employees are agree about performance appraisal system used in the
organization
o 10% employees are undecided about performance appraisal system used in the
organization
o 6% employees are disagree about performance appraisal system used in the
organization
o 50% employees are strongly disagreeing about performance appraisal system used
in the organization.

76

Q.6
Response
Respondents

Are you satisfied with the training provided to you in the organization?
S. Agree
28

Agree
72

Neutral
0

Disagree
0

S. Disagree
0

Interpretation:
o 28% employees are strongly agreeing that with the training provided to them in
the organization.
o 72% employees are agreeing with the training provided to them in the
organization.

77

Q.7
Response
Respondents

Are you satisfied with the promotion based on the Performance?

S. Agree
55

Agree
26

Neutral
10

Disagree
5

S. Disagree
4

Interpretation:
o 55% employees are strongly agreed that promotion should base on the
Performance.
o 26% employees are agreeing that promotion should base on the Performance.
o 10% employees are neutral about promotion should based on the Performance.
o 5% employees are disagreeing that promotion should base on the Performance.
o 4% employees are strongly disagreeing that promotion should base on the
Performance.

78

Q.8

Response
Respondents

Are you satisfied with promotion which is provided to the employees in

the organisation?
S. Agree
27

Agree
36

Neutral
19

Disagree
18

S. Disagree
0

Interpretation:
o 27% employees are strongly agree that promotion which is provided to them in
the organization.
o 36% employees are agree that promotion which is provided to them in the
organization.
o 19% employees are neutral promotion which is provided tothem in the
organization.
o 18% employees are disagreeing that promotion which is provided tothem in the
organization.
o 0% employees are strongly disagree that promotion which is provided to them in
the organization.

79

80

Q.9

Are you agree that company promotion policies are well defined and
Shared with all employees?

Response
Respondents

S. Agree
36

Agree
30

Neutral
8

Disagree
16

S. Disagree
10

Interpretation:
o 36% employees are strongly agreed that company policies are well defined and
shared with all employees.
o 30% employees are agreeing that company policies are well defined and shared
with all employees.
o 8% employees are neutral about company policies are well defined and shared
with all employees.
o 16% employees are disagreeing that company policies are well defined and shared
with all employees.
o 10% employees are strongly disagreeing that company policies are well defined
and shared with all employees.

81

Q.10

Are you satisfied with the monetary reward which is provided on the basis
of performance?

Response
Respondents

S. Agree
20

Agree
30

Neutral
5

Disagree
40

S. Disagree
5

Interpretation:
o 20% employees are strongly agreed that monetary reward should provided on the
basis of performance.
o 30% employees are agreeing that monetary reward should provided on the basis
of performance.
o 5% employees are neutral about monetary reward should provided on the basis of
performance.
o 40% employees are disagreeing that monetary reward should provided on the
basis of performance.

82

o 5% employees are strongly disagreeing that monetary reward should provided on

the basis of performance.

Q.11
Response
Respondents

Talents are not just being recognized but reward as well?

S. Agree
26

Agree
30

Neutral
4

Disagree
26

S. Disagree
14

Interpretation:
o 26% employees are strongly agree that Talents are not just being recognized but
reward as well.
o 30% employees are agree that Talents are not just being recognized but reward as
well.

83

o 4% employees are neutral that Talents are not just being recognized but reward as
well.
o 26% employees are disagree that Talents are not just being recognized but reward
as well.
o 14% employees are strongly disagree that Talents are not just being recognized
but reward as well.
Q.12

Do you think rewards are used as a technique for motivating both the
Employees and their family?

Response

S. Agree

Agree

Neutral

Disagree

S. Disagree

Respondents

36

30

16

10

Interpretation:
o 36% employees are strongly agree that reward is used as a technique for
motivating both employee and his/her family

84

o 30% employees are agree that reward is used as a technique for motivating both
employee and his/her family
o 8% employees are about reward is used as a technique for motivating both
employee and his/her family
o 16% employees are disagree that reward is used as a technique for motivating
both employee and his/her family
o 10% employees are strongly disagreeing that reward is used as a technique for
motivating both employee and his/her family.

Q.13

Is counseling helpful in improving the performance of individuals in your

Organization?

Response
Respondents

S. Agree
34

Agree
30

Neutral
8

Disagree
14

S. Disagree
14

Interpretation:
o 34% are strongly agreed and said that counseling is helpful in improving
performance of individual.

85

o 30% are agreed and said that counseling is helpful in improving performance of
individuals.
o 8% are neutral about that counseling is helpful in improving performance of
individuals.
o 14% are disagree and said that counseling is helpful in improving performance of
individuals.
o 14% are strongly disagreed and said that counseling is helpful in improving
performance of individuals.
.
Q.14

Information obtained from appraisal is being used for development and

Advancement purpose?

Response
Respondents

S. Agree
20

Agree
40

Neutral
18

Interpretation:

86

Disagree
15

S. Disagree
7

o 20 % employees strongly agreed that Information obtained from appraisal is being

used for development and advancement purpose.
o 40 % employees agreed that Information obtained from appraisal is being used for
development and advancement purpose.
o 18 % employees neutral about Information obtained from appraisal is being used
for development and advancement purpose.
o 15 % employees dis agreed that Information obtained from appraisal is being used
for development and advancement purpose.
o 7 % employees strongly disagreed that Information obtained from appraisal is
being used for development and advancement purpose.
Q.15 Do you think that Feedback request should be shared with entire company?
Response
Respondents

S. Agree
30

Agree
20

Neutral
10

Interpretation:
87

Disagree
20

S. Disagree
20

o 30% employees are strongly agreed that feedback result should be shared by the
entire company.
o 20% employees are agreeing that feedback result should be shared by the entire
company.
o 10% employees are neutral about feedback result should be shared by the entire
company.
o 20% employees are disagreeing that feedback result should be shared by the entire
company.
o 20% employees are strongly disagreeing that feedback result should be shared by
the entire company.

88

FINDINGS RELATED TO THE

PERFORMANCE APPRAISAL SYSTEM
I am submitting the few findings, which I have evaluated after studying the Performance
Appraisal System.

The staff, which calculates or measures the performance, is capable of keeping the
records.

The performance of the workers and the staff is calculated twice in a year.

The Bhushan power & steel ltd. maintains the records of the workers and staff
members separately. They follow different method, grading level and different
criteria to evaluate the performance of workers and staff members.

Earlier the company was having the same from for the performance appraisal of
the workers and the employees but from last two years they have made few
changes and made two different forms for the workers and the staff members.

Forty points are being considered as the maximum points for the best performance
in the Performance Appraisal System below forty points is considered to be low.

89

As such there are no fixed standards fixed for the calculation of the Performance
Appraisal System.

90

SUGGESTIONS
These are the various results that I have got through my study: It seems that this organization is in growth phase hence systems do exist but needs
a lot of improvement.
Performance management system needs to be linked to training and development
and promotion, career progression, companys objectives etc.
It is suggested that the involvement of appraisal in performance management
activities is increased.
The various goals should be set at the individual level.
The employees should be encouraged that if they perform their work very well
then they must be awarded.

91

CONCLUSION
BHUSHAN POWER & STEEL LTD. is a fast growing company in the terms of
profitability, market share and value. The insight is just the small glimpse of how the
knowledge books are practically transformed into what you call as a success theory. In
just some years of its presence in market it has had the distinction of being one of the fast
growing companies. The relationship between the management and the employees in this
organization are very amity and good .Employees do not want to leave the company and
want to work here. This shows the job satisfaction and that why there is very low rate of
Labour turnover and absenteeism.
Performance appraisal of the employees done twice in a year in this organization.
Employees are conscious about their training need assessment, promotion and monetary
reward. Performance appraisal put greater impact on these three factors.

92

BIBLIOGRAPHY
1)

Chabra TN (1998) HUMAN RESOURES MANAGEMENT fourth edition,

Dhanpat Rai & CO. page no-231-234,250-254

2)

Subba Rao (1996), ESSENTIALS OF HUMAN RESOURES MANAGEMT

AND INDUSTRIAL RELATIONSHIP second edition, Himalaya publication New
Delhi pp-423-433

3)

Dewidi R.S. Managing human resources personnel management Sultan Chand &
Sons, Publication, page no.56-64

4)

Personal Management (IIMM) for distance learning .pp 155

5)

Khurana Ashok (2006-2007),HUMAN RESOURCES MANAGEMENT Latest

edition VK Enterprises pp-88-89,104-105

6)

Prasad L.M, HUMAN RESOURCES MANAGEMENT, Sultan Chand & sons

publishing house 8th edition. Page no. 240-289

7)

Rao VSP Human Resources management (Text Cases); 11th edition, Sultan
Chand & sons publication page no. 240-289

8)

Bernard in H.John Human Resources Management, Forth edition, Tata McGraw

Hill Publication CO.ltd pp-316

9)

Deunzo David A Robbins Stephen, Personnel Human Resource Management Tata

Mc Graw Hill Publication, page no.-220-240, Edition 2003.

10) K. Ashwathapa, Performance Appraisal & Job Evaluation, Human Resource

Management & Personal Management Tata Mc graw Hill Publishing Housing,
page no. 199-230.
11) Tripathi P.C. Human Resource Management Concept and Issues 3rd edition,
Himalaya Publishing House, page no.93-96
12) Sharma A.M, Industrial Relation Himalaya Publishing House New House, edition
2001 page no.122-141
13) Bhattacharya Kumar Deepak Human Resource Management Excel Book, Fifth
edition.

93

14) Kothari C.R. Research Methodology- Methods & Techniques: (Second edition)
New Age International Publishier, page 55-58, 95,100,111
15) Gupta S P, Statistical Method and Techniques Sultan Chand &Sons, Educational
Publishers, New Delhi, page no.115-138
16) Hooda R P Statically Introduction, Ist Edition, McMillan India Ltd,New Delhi,
page 42-43t
17)

Donald R. Cooper and Pamela S. Schindler, Business Research Methodology

Eighth Edition Tata McGraw Hill Publishing Company Limited, New Delhi.
Chapter 3, Page 82, 86, 87. Chapter 4, Page 101,102

Websites:
1)

http://www.bhushanpowersteel.com/about_bhushanpowersteel.asp

(from this

I have taken the introduction of the company)

2) http://www.indiamart.com/company/view-catalog.cgi.asp (History of the company
is studied)
3)

http://www.indiamart.com/company/view-catalog.cgi asp (Company philosophy,

company saga, company mission has been studied)

4) http://www.indiamart.com.asp21(information about company product range is
taken)
5) http://www.bhushanpowersteel.com/23(Information about company infrastructure)
6)

www.h.r-guide.com

(It reveals that company should use principal for appraisal system

and how we conduct effectively.)

7)

http://www.appraisal.naukkrihub.com/-37k

(from this website I took the information

about performance appraisal system of the organizations.)

8)

By D.C. Konini, (5 aug.2004) Employee Appraisal Indian Management.

9)

By Approve Chandra, (11 April 2004) (Reward Management, way the world pays
Human Capital.
H.R.M. Review, Nov.2005
H.R.M. Review, Aug..2005
University News, May2007
M.B.A. Review, JUNE2009

10)
11)
12)
13)

94

ANNEXURE
QUESTIONNAIRE
Name :
Age

Sex

Male . Female.

Department :

....

Designation:

Q.1

Are you aware about the Performance Appraisal System in the organisation?
Yes

[ ]

No

[ ]

Q.2 Does the appraisal system apply at all levels in the organization?
Strongly Agree

[ ]

Agree

[ ]

Neutral

[ ]

Disagree

[ ]

Strongly Disagree

[ ]

Q.3 Do you think Performance Appraisal is a continous process?

Strongly Agree

[ ]

Agree

[ ]

Neutral

[ ]

Disagree

[ ]

Strongly Disagree

[ ]

Q.4 What is the frequency of Appraisal System in your opinion what should be the
timeing ?
Quarterly

[ ]

Half Yearly

Annually

[ ]

After 2 Years [ ]

95

[ ]

Q.5

Are you satisfied with the method which is currently used for Performance

Appraisal?

Q.6

Q.7

Strongly Agree

[ ]

Agree

[ ]

Neutral

[ ]

Disagree

[ ]

Strongly Disagree

[ ]

Are you satisfied with the training provided to you in the organization?
Strongly Agree

[ ]

Agree

[ ]

Neutral

[ ]

Disagree

[ ]

Strongly Disagree

[ ]

Are you agree with the promotion based on the Performance?

Strongly Agree

[ ]

Agree

[ ]

Neutral

[ ]

Disagree

[ ]

Strongly Disagree

[ ]

Q.8
Are you satisfied with promotion which is provided to the employees in the
organization?
Strongly Agree

[ ]

Agree

[ ]

Neutral

[ ]

Disagree

[ ]

Strongly Disagree

[ ]

Q.9
Are you satisfied with the monetary reward which is provided on the basis of
performance?
Strongly Agree

[ ]

Agree

[ ]

Neutral

[ ]

Disagree

[ ]

Strongly Disagree

[ ]

96

Q.10

Talents are not just being recognized but reward as well?

Strongly Agree

[ ]

Agree

[ ]

Neutral

[ ]

Disagree

[ ]

Strongly Disagree

[ ]

Q.11 Do you think rewards are used as a technique for motivating both the employees
and their family?
Strongly Agree

[ ]

Agree

[ ]

Neutral

[ ]

Disagree

[ ]

Strongly Disagree

[ ]

Q.12 Do you agree that monetary reward is enough instead of promotion for better
performance?
Strongly Agree

[ ]

Agree

[ ]

Neutral

[ ]

Disagree

[ ]

Strongly Disagree

[ ]

Q.13 Is counseling helpful in improving the performance of individuals in your

organisation?
Strongly Agree

[ ]

Agree

[ ]

Neutral

[ ]

Disagree

[ ]

Strongly Disagree

[ ]

Q.14 Information obtained from appraisal is being used for development and
advancement purpose?
Strongly Agree

[ ]

Agree

[ ]

Neutral

[ ]

Disagree

[ ]

97

Strongly Disagree

[ ]

Q.15
Do you think that Feedback request should be shared with entire
company?
Strongly Agree

[ ]

Agree

[ ]

Neutral

[ ]

Disagree

[ ]

Strongly Disagree

[ ]

Signature

98

99