Summer Training Project Report

On
“A PROJECT REPORT ON PERFORMANCE APPRAISAL AT BHEL, JHANSI”

Submitted In Partial Fulfillment of the requirement for the award of the

Degree of

MASTER OF BUSINESS ADMINISTRATION

Of
Mahamaya Technical University, Noida

(2011)
SWEKSHA SAHU

Roll no-1021270033

UNITED INSTITUTE OF MANAGEMENT

GREATER NOIDA
 DECLARATION

I, Sweksha Sahu a bonafide student of UNITED INSTITUTE Of

MANAGEMENT GREATER NOIDA would like to declare that the

project entitled “PERFORMANCE APPRAISAL AT BHEL,

JHANSI” submitted a partial fulfillment of MASTER OF

BUSINESS ADMINISTRATION is an original work of mine. And it

has not been submitted to any other university.

PLACE:-

DATE :- SWEKSHA SAHU

(i)
 ACKNOWLEDGEMENT

This project is not definitely my exclusive work but several persons have contributed

towards it. I pay my gratitude to all whose guidance and idea have been helpful in

preparing this report.

During this course of study many useful suggestion & constructive criticism came

across which really help a lot in giving this project a professional look.

I am immensely grateful and express my sincere thanks to Dr. Rajeev Sijariya

(Principal)

MBA department, UIM and my faculty guide, for providing me timely help,

Encouragement, suggestion and required knowledge about my project.

I am really thankful, to all the employees of BHEL JHANSI. Their love and

guidance was encouraging throughout the training period.

I am grateful to Mr. Vikramaditya (HR executive) who encouraged & supported me

a lot for providing me opportunity to undergo the training and also I express my

thanks to all members of HRD for their help and cooperation.

Further more, I am really thankful to my uncle Mr R.C Saxena (Sr. Engg TRE) for

his support & guidance that help me throughout the project.

(ii)
 PREFACE

A major concern of every HR manager should be contribute possibility towards the

achievement of the organization‘s‘ objective. Organizational effectiveness if often equated

with human managerial efficiency as a HR manager. You can sure organizational

effectiveness only by guarantying the full utilization of human resources through the

individual employees under the increase the performance himself. Hence the need for

measuring and monitoring the performance of employees is inevitable.

(iii)
 TABLE OF CONTENTS

1. Table of Contents

Chapter 1. Introduction of the Topic 1-2

Chapter 2. Scope & Objectives 3

Chapter 3. Literature Review 4-46

Chapter 4. Company Profile 47-55

Chapter 5. Research Methodology 56-60

Chapter 6.

- Theory to the Topic 61-64.

- Data Analysis & Interpretation 65-80

- List of Findings 100

- Conclusion 101

Chapter 7. - Limitations 103

- Suggestions/ Recommendations 104-105

2. Bibliography/ List of References (v)

3. Annexure (s) (vi)

(iv)
 CHAPTER-1

Introduction-

Performance appraisal is something which is not very old for the government organizations.

Even today railways, etc have just confidential reports as performance appraisal tool, but now

even the public sector units have introduced various methods to appraise the workers for their

performance. Bharat Heavy electronics limited( BHEL) is just one of those public sector units

which have evolved greatly in terms of the use of various human resource related activities,

performance appraisal being one of them.

In the past ten years BHEL has introduced various methods for implementation of a best

performance boosting technique and now is quite successful too in its goal of devising a

performance management system which is fair and acceptable by all people whether the

supervisors, artisans, executives or the top management. Presently the technique used has been

widely accepted and is successful too in achieving its goals of motivation and employee

satisfaction, ―for only a satisfied employee can perform the best‖.

BHEL is the largest engineering and manufacturing enterprise in India in the energy-

related/infrastructure sector, today. It was established more than 40 years ago, ushering in the

indigenous Heavy Electrical Equipment industry in India - a dream that has been more than

realized with a well-recognized track record of performance. The company has been earning

profits continuously since 1971-72 and paying dividends since 1976-77.

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BHEL caters to the core sectors of the Indian Economy, viz. Power, Transmission, Industry,

Transportation, Renewable Energy, Oil & Gas and Defence. The high level of quality &

reliability of its products is due to the emphasis on design, engineering and manufacturing to

international standards by acquiring and adapting some of the best technologies from leading

companies in the world, together with technologies developed in its own R&D centres. To get

such standards and quality it requires a motivated and satisfied workforce, and to get such a

workforce it requires an effective performance appraisal scheme.

This organization has evolved its performance management scheme, earlier there was just

confidential reports for all the employees, now the system is quite different there is the system

divided into three: for artisans and supervisors the confidential reports continue to be used, then

for the executives and others there is this web based e-map system also known as Moving ahead

through performance which has got various other tools which have changed the picture of the

performance management system at bhel.

In this project the performance appraisal scheme of BHEL is scrutinized along with the evolution

of the techniques used, also the improvement introduced or a policy omission, and most

importantly the effectiveness of this performance management system followed in the company

throughout the country.

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 CHAPTER 2

SCOPE AND OBJECTIVES

The objectives of this project are:

1 The major objective of this project is to evaluate the present performance appraisal scheme in

BHEL.

2 The effectiveness of the performance appraisal system of the organization.

3 To check the satisfaction level among the employees

4 To study the changes over the years in the scheme

5 The reasons and results of introducing new features in the system

6 BHEL‘s performance managing system with respect to other government organizations.

3
 Chapter 3

Literature Review

Performance appraisal -

Performance appraisal is one of the oldest and most universal practices of management. It refers

to all the format procedures used in working organization to evaluate the personalities and

contribution and potential of group members.

Performance appraisal is defined as a ―structured formal interaction between an employee and

his sub-ordinate that usually take the form of a periodic interview (annual or semi- annual or any

other periodicity fixed by the management) in which the work performance of the sub- ordinate

is examined as well as opportunities for improvement and skill development. In BHEL too, the

same process occurs employees get evaluated by their immediate seniors the evaluation acts as a

basis of their promotions and the incentives they get. There is a strategy used at BHEL according

to which the employees are divided into two categories; first to represent the artisans and the

supervisors and the second category of executives and top management, while supervisors get

their annual confidential report as a measure of their performance and the incentives hardly get

affected the second category gets incentives based on their performance which gets evaluated

based on e-MAP( Moving ahead through performance) an online technique to appraise

employees.

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Performance appraisal is known as an important tool of personnel management since it reflects

an evaluative judgment of the traits, characteristics as well as work performance of the

employees on their jobs. Therefore the importance of employee performance appraisal within an

organization is of vital importance from the point of view of employees- both subordinates and

supervisors. Employee can earn more income and better employment privileges by better

performance measured by some appraisal plan. These appraisal plans serve as a basis for

counseling employees about their strength and weaknesses for improving their productive

efficiency and for better superior employee relations by developing material confidence.

Appraisal plans are also of great importance in the area of training, development, compensation,

handling grievances and disciplinary cases.

In words of Mc Gregor:

Performance appraisal plans are designed to meet three needs, one of the organization and

other of the individual, namely

 To provide systematic judgment to back up salary increase, transfer, demotion or

termination.

 They are means of telling subordinates that how he is doing, and Suggestion needed

change in his behavior, attitude skills or job knowledge.

 They are used as a base for coaching and counseling the individual by the superior.

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I chose this topic for the project work because the performance appraisal system of BHEL has

drastically evolved in recent years, therefore to evaluate the basic entries criteria of the

employee‘s performance in the company. It is necessary to know the actual conditions and the

employee satisfaction in the industry.

More over it is learnt that BHEL is the first public sector undertaking that has gone for electronic

method of performance measurement through the E-MAP (Moving ahead through performance)

But before going any further it is important to know the importance of the performance appraisal

system, which is as under:

Performance Appraisals is used by many organisations due to the following Reasons:-

1) Administrative- Performance Appraisal commonly serve as the administrative tool by

providing employers with the rationale for making many personnel decisions.

2) Employee Development- Performance Appraisal for employee‘s development purpose

provides feedback on employees performance. Appraisal data can also be used for

employee development purpose in helping to identify specific training need for

individuals.

3) Programme Assessment- Programme Assessment requires the collection and storage of

Performance Appraisal data for number of uses. The records can show how effective

recruitment, selection and placement have been supplying a qualified workforce.

4) To create and maintain a satisfactory level of performance.

5) To bring about better operational and business needs

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 6) To facilitate fair and equitable compensation based on performance

7) To help the superiors to have a proper understanding about their subordinates.

8) To provide information useful for manpower planning by identifying the employees with

the potential for advancement.

9) To facilitate for testing and validating selection tests, interview techniques through

comparing their scores with performance appraisal ranks.

Apart from these, the biggest advantage is to motivate the workforce, keeping in mind the

growing attrition rates and the employee dissatisfaction among the employees; the HR

professionals are approaching and using the performance appraisal as a fuel to motivate

employees. The latest trend being followed by the HR professionals is to use the

performance appraisal and review process as a motivating mechanism.

One of the most motivating factors for the employees, in the Performance appraisal processes is

to receive a fair an accurate assessment of their performance. Inaccurate evaluation is one reason

because of which most employees dread going through performance appraisals. An employee

always expects his appraiser to recognize and appreciate his achievements, support him to

overcome the problems and failures.

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The discrepancies and the inaccuracies in the performance review can demotivate the employees,

even if there has been an increase in the salary. Such inaccuracies can kill the innovating and risk

taking enthusiasm and spirit in the employees. Similarly, inaccurate reviews with no hike in

compensation can increase the attrition rate in the organisation, forcing the employees to look

out for other options.

Keeping these things in mind the top management of BHEL has introduced the E-MAP system

which ensures transparency to a great extent, hence the motivation level of the employees

increases seeing such a transparent system thus it could be said that the present system provides

transparency at such a level which nobody ever had.

Fig: 2.1

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The above diagram describes how important is it to get a fair evaluation for motivation, an

employee with good performance if does not get good incentives, would definitely get

demotivated and his working quality would also decrease; on the other hand if the performance

gets fairly rated resulting in good incentives, the person would be highly motivated, would work

harder, there is another way around too even if a person is being payed good but performance

review is inaccurate there would be decrease in motivation again.

Performance appraisal at BHEL-

BHEL has been working to improve the performance appraisal system ever since its beginning,

unlike the other public sector units this organization is way ahead of its other counterparts, its

system is like that used in other organizations of the private sector, way ahead in technology.

The features which make it remarkable are:

 Its technology, the performance appraisal system has gone all online, gone are the days in

which people had to dug their heads into papers now people can check out their

performance scores online.

 It is a systematic way of appraisal, people have different grades, they have different work

and so have to be differently rated for their performance; therefore the whole system is

divided into two categories, first category depicting the supervisors and the artisans and

the second category consisting of executives and the top management.

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  It is a fair system for appraisal, as the lower grade people are not much into technicality

so their incentives should not be dependent upon their performance in terms of ideas, etc

for they would do what they are asked to by the executive, thus they get normal bonuses

only the promotions do get affected by these annual confidential report containing the

details of the evaluation done on their performance.

 The executives are the people who take major decisions and see through the normal

processing of their respective departments, thus their incentives are performance based,

and they are rated as per their achievements and the type of work they performed.

 To seek that the company‘s objectives get fulfilled and the organization functions well,

there is a need to rate the efforts of a team, a department, a sector , a unit and so their

exists a balance scorecard system in which rather than individuals, whole of the

organization is responsible for gaining points.

These are thus some of the features of the BHEL performance appraisal system, which make it

whole lot of better than the other techniques..

Cascade refers to the process of aligning organizational goals to individual goal in a series of

step. This is done by translating the goal that are identified at organization level in to business

sectors, unit functional and departmental level scorecard and onward in the form of KRA to

individuals who form a part of these unit. Cascade of unit /department level goals to individual

KRA ensures alignment and that the individual and group objectives and results contribute

directly to achievement of organizational results

10
BHEL’s performance targets:

The major objectives on which performance is graded could be divided into four categories:

1. To gain financial gains, that is bringing profits

2. Customer satisfaction

3. Proper processing

4. Good strategies to enhance the organization‘s capability

Organization’s performance

Unit performance sector performance

Department performance

As given above the organization‘s performance depends upon the performance of its units and

sector and each sector‘s performance depends upon the departments under it, this mechanism is

dependent upon the balance scorecard, which is used to give details of the performance of the

sector, departments units and ultimately the organization as a whole. Balance scorecard is used to

show the performance of each unit rather than individual people.

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People involved in the system-

SUPERVISORS

This class of employees is higher than the artisans and lower than executives. The supervisor is

responsible for passing of work orders from the executives and then making sure that the

workers work according to the requirements of the customers. The supervisors are ranked from

S1 toS7 under different grades. Sometimes direct appointment is also made. The performance

appraisals systems used for the supervisors are the ACR‘s. The supervisory cadre is classified as

under:

 Charge man S1

 Assistant Forman S2

 Forman S3

 General Forman S4

 Executive Forman S5

 Senior executive Forman S6

 General executive Forman S7

EXECUTIVEs

The executive class of any industry is responsible for its proper functioning and long term

benefits. Executive class has to be exhibit various traits like leadership, motivation,

communication skills, discipline, job knowledge, managerial capabilities etc.

12
to set an example to not only the sub-ordinates but also to the colleagues and the authorities.

They manage the workers, supervisors and other supporting staff and are responsible for the

proper growth, public relations, customer satisfaction and thus market value of the firm on

national and internationals platforms. They utilize not only their technical knowledge but also

their managerial skills. The executive class is divided into following grades:

 Engineer/ officer E1

 Senior Engineer/ officer E2

 Deputy Manager E3

 Manager E4

 Senior Manager E5

 Deputy General Manager E6

 Senior Deputy General Manager E6-A

 Additional General manager E7

 General Manager E8

 Executive Director E9

Thus we see that the executive class goes to the top right from the engineers to the top

management of the company.

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Performance appraisal of the supervisors and below-

There is no special technique to describe the performance of the supervisors and artisans, this

category does not require much of innovation,

and they work as per what is told to them by their superiors belonging to the executive category.

The incentives are not dependent upon the performance, they get bonuses as per what is

promised by the organization, and the only way in which their performance gets rated is only

through the annual confidential report. The annual confidential report gets filled by the

immediate superior and is reviewed at the end of the year. Although it has no affect on the

bonuses, but does it affect the promotions.

Annual confidential report (ACR)

From the time of its establishment BHEL has adopted the system of Annual confidential report.

It is an annual report about an employee which is confidential, the basic intention was to keep a

systematic record of the employee traits, behavior and performance towards his job and the

organization as a whole. This is the form of the appraisal system which is used to evaluate the

performance appraisal of the:-

 Workers working in the organization

 Their supervisors.

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ACR system was in operation upto 2000-01 for all the employees, after that the appraisal system

for executives got converted to the E-MAP technique, and now it is meant only for superiors and

below.

In the system of ACR there are three parties:-

 Appraisee

 Reporting officer

 Reviewing officer

Appraisee is the employee himself, whose assessment is to be done. It is the person who is

going to be rated.

Reporting officer is the immediate superior of the appraiser and he gives marks to the

employee.

Reviewing officer is the Reporting officer‘s superior, who appraises the reporting officer and

reviews the report given by the reporting officer about his junior.

If the performance appraisal of an employee is to be done, he will be assessed by his immediate

supervisor or the reporting officer who will grade him and then the report would be reviewed by

the appraiser‘s superior. According to the performance the employee is given feedback by his

superior but as it is quite confidential the employee remains unaware of what has been his rating,

this flaw has however been removed as these confidential reports have gone online now, the

employees now know what they have been rated and on what parameters, thus, they can improve

in those areas in which they have been poorly rated.

15
 The abilities on which they could be rated are as following:-

 Administrative

 Technical

 Personality

 Integrity

These are the areas in which rating is to be done:

 Administrative, to check out the leadership and managing quality of an employee.

 Technical, to seek the technical efficiency

 Personality to check the charisma and behavioral traits of an individual

On the basis of the above qualities/abilities/traits the employee is then categorised in the

following categories-

 Outstanding

 Very Good

 Good

 Fair

 Poor

Reporting officer grade the employee and puts his signature and seal after this report to his

immediate boss i.e., the reviewing officer. The Reviewing officer carefully considers and states

weather he has accepted those remarks or not. Finally the report is passed to the final accepting

officer whose acceptance is necessary for the report.

16
ACR for different category is different and the grading systems also differ to some extent

depending upon their traits (both personal as well as working).

Usually the least grade that the employees get is fair, and then the grading is given as per the

performance throughout the year, it is a common habit of the superiors to grade people in the

good and very good category.

The ACR report consists of two parts the:

 The first part contains the personal data of the employee, his present and previous grade,

designation, scale, basic pay, etc.

 The second part is to be rated as per certain parameters:

1. Technical ability

2. Administrative ability

3. Personality, dependability and character

4. Assessment of integrity

5. Soundness of opinion & courage in marking decision

There are grades given for each of the parameter given above.

Objectives of ACR

 To know about the strength and the weakness of the individual.

 To evaluate the managerial behavior and its impact on performance of the industry

 Advice to employees so they can make themselves better.

 To uncover both suitable and unsuitable personnel.

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  To examine the level of performance of the personnel in the industry (BHEL).

 To evaluate the performance of employees at their working place.

 Creating and maintaining a satisfactory level of performance of employees in their

present job

 Fixation of salary, allowances, incentives and benefits.

Drawbacks of the ACR system

Lack of objectivity in appraisal was a common complaint. This was mainly on account of the

following:

1. No provision for performance planning at beginning of year to define WHAT is to be

done and HOW MUCH?

2. No visible co-relation between actual performance and final assessment which was done

basically on Traits & Competencies.

3. No provision for feedback since the system was ‗Confidential‘. Individuals did not know

where they stood until the time of promotions.

Apart from this there were various other reasons which gave a setback to this confidential

system, which are as such:

 The Annual confidential report demands and depends too much on supervisors.

 Sometimes certain standard ratings tend to vary widely and unfairly.

 Some raters can be tough, and some lenient. Some departments have highly competent

people whereas others have less competent people.

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  Personal bias can replace organizational standards. Because of the bias, some non

competent employees may get a favored treatment.

 Sometimes there tends to be lack of communication. The employees may not even know

they are being judged. No performance appraisal system can be effective if the appraised

do not know the criteria under which they have been appraised and judged.

 This system cannot substitute for sound selection, placement and training programs.

 A constructive congenial relationship should exist between the supervisor and his

subordinate. Performance appraisal programs tend to emphasize the superiority of the

supervisor which may be particularly damaging in organizations which strive at

participative organizational climate.

The Remedy:

The major problem faced was that there was hardly any transparency people did not know on

what parameters did they get the grades, everything was so confidential that they were unaware

of what their superiors were grading them on what grounds, but now this problem of excess of

confidentiality is removed by making this system of report online, employees can now check

their CR‘s online and could also ask their superiors for guidance in case of poor grading. This

online system was introduced last year only, so there is still time to check its effectiveness and

employee satisfaction after the introduction of this change.

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Performance appraisal for the executives and above:

For executives and higher grades there is this e-map system or online moving ahead through

performance, in which people get promotions and incentives based on their performance, which

they could see on the Bhel‘s website, it provides a lot of transparency. This E- map technique

uses a lot of tools for its implementation like KRA master, balance scorecard, differentiation, etc.

Over the years there have been various changes introduced, in order to make this technique even

better. The employee firstly appraises himself that is there is self appraisal found here after

which the report is sent to the superior who gives his remarks, if the superior makes remarks

which the employee does not agree with then it goes to the reviewer, who makes his final

decision.

Before the appraisal there are two most important things to be planned which are as such:

A) Organization‘s specific policy- Top management within each organization shall develop,

implement and administer a performance management policy. This policy & procedure shall be

tailored to meet the organization within the parameter of this policy. Each policy must reflect the

conscious decision that agency management makes in designing performance management

system. An agency policy must include:-

 All of the components of an operative system.

 Instruction about how the system will operate using the three parts management

performance process.

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  A provision requiring that one of the responsibilities included in each supervisor‘s

and manager‘s work plan is managing the performance of subordinate employees in

accordance with the organization.

 Performance management policy and procedure.

 Sanctions to be levied by the agency head if all provisions are not met.

 Relationships of performance management to other human resource system.

 Responsibilities/roles of the organization Personnel.

B) Individual work Plan-Each employee shall have a work plan established at the beginning of the

cycle on an annual basis. A work plan must include the result to be accomplished and the

behavior/skills needed to produce these as well as any special one time projects and/or goals. The

work plan shall be based on each employee‘s position description or an equivalent document

based on job analysis (this would include a generic or specific job description, a listing of job or

responsibilities etc), if no position description exists a job description or its equivalent shall be

written using a job analysis approach. Each employee‘s work plan must also include

expectations, tracking sources/frequency and actual performance. Expectations must be written

at the ―GOOD‖ level. To be considered substantive at the ―GOOD‖, performance expectations

must have one or more indicators for measuring (quality, quantity, timeliness or cost). In order to

be as fair s possible to employees and to ensure that work plans are defensible, supervisors

should also discuss performing at the ―OUTSTANDING‖ and ―UNSATISFACTORY‖ levels.

The supervisor‘s managers are responsible for ensuring that expectations for similar jobs across

units reporting to them are consistent and equitable.

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C) Management should endure to establish standard work plans for employees performing the same

work except for the parts of job, which vary. After the work plan is completed at the beginning

of the cycle. It must be signed and dated by the employee, the supervisor, and the supervisor‘s

manager. If changes are made on the work plan during the cycle, the employee, the supervisor

and the supervisor‘s manager must initial date the changes before it is effective. In both of these

cases, the supervisor retains the original and the employee must receive a copy. Unusual

circumstances within certain jobs/classification may require alternative practices to ensure

reasonable requirements and equitable treatment. These situations should be discussed with the

office of personnel so that adjustments may be made.

Key features of E-MAP:

There are various features of this technique which makes it different from others and more

efficient, these features are as such:

 Alignment & focus-

Employee‘s performance aligned to the goals of BHEL. Individuals make their own

action plan keeping in mind the organization‘s goals.

 Objectivity –

Measuring performance objectively based on targets

defined at the beginning of the year.

 Transparency-

Clear and transparent process of target setting and sharing of assessment with

individual, has brought about a lot of transparency.

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 Consistency

Consistent application of MAP tools across the

organisation (standard KRAs, Unit of measurement).

 Differentiation

Identifying & rewarding high performers, and seeking that the appraiser does not

take the process for granted, for they have a tendency of rating everyone almost

equally through this process bands are made and no two employees of the same

band can get the same rating.

 Development

Developing individual competence & capability required for the role, this could

be done through proper training and motivation to employees.

 e-Enablement

Bhel has a Web-based system linking over 100 locations, covering around 11,000

executives. Centralised monitoring for effective implementation thus a transparent

and spread to whole of the country system.

2
 Map tools-

There are various Map tools used to measure the performance of individuals and of the

units or departments itself, these tools are as such

 Balance scorecard

 KRA masters

 Rating scales

 Differentiation

 Normalization

1. Balance Score Card (BSC)

The Balanced Scorecard (BSC) is a strategic performance management tool for measuring

whether the smaller-scale operational activities of a company are aligned with its larger-scale

objectives in terms of vision and strategy. By focusing not only on financial outcomes but

also on the operational, marketing and developmental inputs to these, the Balanced Scorecard

helps provide a more comprehensive view of a business, which in turn helps organizations

act in their best long-term interests.

The balanced scorecard is a strategic planning and management system that is used

extensively in business and industry, government, and nonprofit organizations worldwide to

align business activities to the vision and strategy of the organization, improve internal and

external communications, and monitor organization performance against strategic goals. The

Balance Scorecard is used for the executive class in BHEL.

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There are certain parameters on which rating is done for each department or unit, etc. then a

cascade is formed, there are certain measures taken in order to achive the targets, these

targets are customer satisfaction, profit and increased capability to produce, so there have to

be certain measures taken in terms of the financial situation that is, the organisation must best

utilize its resources while also gaining profit, besides the process to produce must be efficient

enough to give technical upperhand to the organization over others.

Fig: 2.2 the targets of the balance scorecard

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On the above given parameters the rating is done in terms of objectives, measures, targets and

initiatives.

Perspectives

The balanced scorecard suggests that we view the organization from four perspectives, and to

develop metrics, collect data and analyze it relative to each of these perspectives:

The Learning & Growth Perspective - This perspective includes employee training and

corporate cultural attitudes related to both individual and corporate self-improvement. In a

knowledge-worker organization, people -- the only repository of knowledge -- are the main

resource. In the current climate of rapid technological change, it is becoming necessary for

knowledge workers to be in a continuous learning mode. Metrics can be put into place to guide

managers in focusing training funds where they can help the most. In any case, learning and

growth constitute the essential foundation for success of any knowledge-worker organization.

The Business Process Perspective -This perspective refers to internal business processes.

Metrics based on this perspective allow the managers to know how well their business is

running, and whether its products and services conform to customer requirements (the mission).

These metrics have to be carefully designed by those who know these processes most intimately;

with unique missions these are not something that can be developed by outside consultants.

The Customer Perspective - Recent management philosophy has shown an increasing

realization of the importance of customer focus and customer satisfaction in any business. These

are leading indicators:

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if customers are not satisfied, they will eventually find other suppliers that will meet their needs.

Poor performance from this perspective is thus a leading indicator of future decline, even though

the current financial picture may look good. In developing metrics for satisfaction, customers

should be analyzed in terms of kinds of customers and the kinds of processes for which we are

providing a product or service to those customer groups.

The Financial Perspective - Timely and accurate funding data will always be a priority, and

managers will do whatever necessary to provide it. In fact, often there is more than enough

handling and processing of financial data. With the implementation of a corporate database, it is

hoped that more of the processing can be centralized and automated. But the point is that the

current emphasis on financials leads to the "unbalanced" situation with regard to other

perspectives. There is perhaps a need to include additional financial-related data, such as risk

assessment and cost-benefit data.

Objectives of the Balance Scorecard

Implementing Balanced Scorecards typically includes four processes:

1. Translating the vision into operational goals;

2. Communicating the vision and link it to individual performance;

3. Business planning; index setting

4. Feedback and learning, and adjusting the strategy accordingly.

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The Balanced Scorecard is a framework, or what can be best characterized as a ―strategic

management system‖ that claims to incorporate all quantitative and abstract measures of true

importance to the enterprise. According to Kaplan and Norton, ―The Balanced Scorecard

provides managers with the instrumentation they need to navigate to future competitive success‖.

Many books and articles referring to balanced scorecards confuse the design process elements

and the balanced scorecard itself. In particular, it is common for people to refer to a ―strategic

linkage model‖ or ―strategy map‖ as being a balanced scorecard.

Although it helps focus managers' attention on strategic issues and the management of the

implementation of strategy, it is important to remember that the balanced scorecard itself has no

role in the formation of strategy. In fact, balanced scorecards can comfortably co-exist with

strategic planning systems and other tools.

As described above is the cascade of performance through a balance scorecard, through this

tool the company prepares its targets and measures it has to take to achieve those targets, now as

per the companies objectives the units prepare their goals and targets similarly to align the work

as per the unit, each department prepares targets to fulfill the goals of the unit and this ultimately

leads to individuals target setting.

Thus based on the four perspectives described there are ratings given to each unit, department,

sector, etc, to ensure how well it is performing, there are five levels on which rating is done.

There is also a weightage attached with each of the perspective, marks are given for each and

then the grand total is obtained describing the overall performance of that unit, etc.

28
 2. KRA Master and the performance planning process-

Performance Management System is based on the importance of managing each individuals

work and continuous communication between employees and their supervisors. It ensures that all

employees:

 Are aware of what is expected from them.

 Are provided with continuous feedback about their performance.

 Are provided with provided with opportunities for education, training and development

 Are awarded in fair and equitable manner.

It is desirable that each organisation has a system for managing.

The performance process is the sequence of the actions that supervisors and mangers take when

interacting with the employees about their performance. The three parts of the process are:-

b) Planning b) Managing c) Appraising

a) PLANNING- At the beginning of the work cycle, the supervisors and the employees shall

meet to develop the employees work plan. It is the supervisor‘s responsibility to explain

the performance management process to the employees that the employee understands

the importance of his role in the organisation. The purpose of this planning meeting is to

discuss and record the employee‘s current responsibilities/results and behavior/skills, the

expectations that describes successful completion of each one, & the tracking sources.

Behavior/skills are the actions, proficiencies or abilities and employee need to use to

achieve specific results.

29
b) MANAGING- This part of the performance management process includes the day to day

tracking of the employees progress toward achieving the performance expectations. The

supervisors and the employee track performance using the sources & frequency of these

in monitoring as agreed upon and recorded the work plan. This information should

provide the base for specific feedback &discussion. It also includes the interim review

and other feedback given to the employee through coaching and reinforcing discussions.

These discussions should be held at the discretion of the supervisor any time throughout

the work cycle when performance changes. Every supervisor shall meet with each

employee atleast one time at the middle of the work cycle for an interim review of

performance. The purpose of this meeting is to discuss the employee progress towards

each of the established expectations & initiate action toward improvement, if needed.

Although this interim review is intended to be informal in nature, the supervisor must

document the actual result and behavior that falls below the ―GOOD‖ level and establish

an improvement to overcome deficiencies. The overall rating must be discussed but does

not have to be recorded. During the monitoring process, the work plan results,

behavior/skills or expectations should be adjusted when it is determined that they have

changed or are beyond the employees control to perform throughout the work cycle, the

supervisor continues to coach and reinforce employees because this is the vital part of the

performance management process.

c) APRRAISING – At the end of work cycle, the supervisor shall meet with each employee

to discuss and record the actual result and behavior for each expectation. The supervisor

must then rate each responsibility and record the rating on the work plan.

30
 d) The supervisors must also record the actual behavior for each expectation and the rating

for each dimension on the work plan. The overall rating shall also be discussed with the

employee and recorded on the work plan. The overall summary statements supporting the

rating shall be written.

The performance planning process basically depends upon the KRA‘s which are the key result

areas, where an employee has to perform as per his URR( unique role and responsibility), this

URR template has been introduced by BHEL so that the KRA‘s are made as per these roles and

people perform as per what is expected out of them.

A KRA master is from where an employee selects his KRA‘s:

1. It is an exhaustive list of Key Result Areas identified in 24 functions to enable executives

prepares their plans.

2. Standard unit of measurement fixed for each KRA for uniformity in measurement.

3. KRAs classified into Operational and Capability building categories.

The KRA Master comes into functioning while planning for the action plan for an individual

employee:

The Performance Plan of an individual essentially consists of one section – KRAs. This is the

essential component of any Performance Plan and the individual is expected to fill in this

section adhering to all guidelines in order to be able to submit his plan to his Appraiser.

31
1. Selecting the KRAs

The Appraisee will select relevant KRAs from the KRA Master of his function (i.e. the

function to which he has been mapped). A minimum of 4 and a maximum of 15 KRAs can be

selected. (max. 15 from own KRA Master; 5 optional which can be taken from KRA Masters of

other functions so as to ensure that the total no. of KRAs per plan does not exceed 15).

2. Target Setting and Action Plans for KRAs

For each KRA, 5 levels of performance must be defined by the appraisee that quantify the

extent of achievement in a given timeframe (L5 being the best and L1 being the lowest level of

performance)

Along with these, the Appraisee will develop an Action Plan consisting of specific steps

required to achieve the target for each KRA.

3. Calculate ‘Stretch’ for L5 performance

For each KRA, the stretch for L5 Performance will be calculated using the Stretch Tool

provided in the system. (The Stretch Tool is currently under modification).

4. Assigning Weightage

The Appraisee will propose weightages between 5% and 25% for each KRA. The total

weightage for KRA (C) should be equal to or more than the minimum weightage for KRA(C)

prescribed for the relevant URR to which the individual has been mapped. The total of all KRA

weightages should add up to 100%. Maximum limit of weightages have been suggested for all

KRAs across all functions for all the three categories of URRs. Executives while assigning

weightages to the KRAs selected by them in their plan cannot exceed the maximum permissible

weightages specified against each KRA. This is ensured through inbuilt system checks.

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In the case of Special Improvement Projects which have been linked to IMPRESS, the

weightages have been defined as per the Expected IMPRESS Score. The weightage is such cases

can go up to a maximum of 30%. (Table of Expected IMPRESS Score and corresponding

Weightages allowed).

MID YEAR REVIEW PHASE

Mid-Year Review is an interactive feedback session between the Appraisee and Appraiser

ONLY and takes place during the month of October for the half-year ended September 30th . It

is a mid-cycle process for reviewing and tracking achievements thus reducing the scope for

year-end surprises.

The Mid-Year Review does not result in a performance score and will be treated as a ―course

correction mechanism‖ wherein the Appraiser guides the Appraisee on whether the Appraisee

is ‗on track‘ to achieve the performance plan finalised in April. Road blocks can be discussed

and resolved so that the Appraisee is able to achieve his targets.

Mid Year Review begins with the Appraisees‘ self-appraisal. In his self-appraisal, the

Appraisee will comment on his/ her current level of achievement on KRAs and Developmental

Competencies, which will then be discussed with the Appraiser for his feedback and inputs.

During this phase the appraisee also identify both behavioural and functional competency and

completes one of the requirement of this phase.

33
Creating the Development Plan using ” Competencies and Development Plan Sections”

Development Planning in MAP focuses on building individual capability using competencies.

5. Identifying competencies for development from the standard list

From the list of functional & behavioural competencies identified for the role, the Appraisee

will identify a minimum of one and maximum of three competencies during this phase. These

will be taken as training requirement which will be met in the following year. The urgent

functional competencies will be arranged internally by the department.

Documentation of the Performance Discussion 7 completing the competency section concludes

the Mid-Year Review Phase of MAP.

The Appraiser and the Appraisee will refer to documented and objective facts regarding

performance-related events for a meaningful performance discussion.

FINAL REVIEW PHASE

The Final Review Phase will begin with the Appraisees‘ self-appraisal wherein he/she gives the

assessment of target achievement on each KRA defined in the Performance Plan.

The Appraiser will review the outcomes of self-appraisal and give his own assessment of the

achievement of the targets in the performance plan for each KRA. In addition he will also give

his assessment on the Behavioural Traits defined in the system.

34
After appraisal by Appraiser the plan will come back to the Appraisee for his information and

assessment done for KRAs (the assessment of Behavioural Traits will not be visible at this

stage). If the Appraisee feels that his Appraisers' Assessment is correct, he can ‗Accept‘ and

forward it to his Reviewer. However, in case of any issues regarding the assessment, the

Appraisee can request for a "Discussion" with his Appraiser. After the discussion, the

Appraiser will finalise his assessment and send it back to the Appraisee. The Appraisee at this

stage can either ‘Accept‘ the assessment or ‗Reject‘ it. In either case the plan will go to the

Reviewer with the appropriate message for his final assessment.

The Reviewer will give his assessment on the KRAs which will form the basis for calculation

of the final performance score of the individual. He will also give his assessment on the

Behavioural traits.

Till such time the decision regarding Normalisation is not taken the final performance score

will be visible to the Appraisee on his dashboard under the link ‗Final Review‘. Once it is

decided to run Normalisation only the final Rating will be visible. Also visible will be those

Behavioural Traits in which he has been given a score of ‗3‘ or less on a five point scale.

The feedback during Mid Year Review will be taken into account to significantly add value to

the Final Review. The Appraisee‘s self-appraisal will not directly contribute to the performance

score but will be viewed as the Appraisee‘s opportunity to share his/her perspective on

performance.

Feedback and Coaching by Appraiser will be a key component of the Final Review as this

serves as an important input into the next cycle‘s Plan.

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Edit Plan

In case there is a genuine need for making mid-course corrections in the plan on account of

changes beyond the control of the Appraisee like dropping / delay of a project, change of

company priorities etc., facility for editing of performance plan has been provided. Such

corrections on specific request (offline) made by Appraisee with proper justification for the

change will be permitted only upto 31st December, with the specific approval of the concerned

Product/Function Head. Only when the Appraisee has the specific written permission of the

approving authority for editing his plan can he approach the Unit HR to enable him to edit his

plan. Unit HR has been given the Administrative Rights to Permit Editing of Plan for any

individual. Once the Unit HR marks the individuals' plan for edit, the plan of the individual

reverts back to "Draft" Mode wherein he can make the necessary corrections and submit the

edited plan for approval of his Appraiser and Reviewer.

Appraisee : Role Overview

Every executive whose performance is assessed under MAP is an Appraisee.

The Appraisee has the major role in MAP as MAP enables him/her to effectively manage his

performance in a given performance cycle.

Performance Planning

 Identify appropriate KRAs from functional KRA Master

 If required, request for new KRAs and seek approval from HOD

 Set five levels of targets for each KRA

 Propose an action plan for achievement of each KRA Target

 Assign a weightage for each KRA

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Mid Year Review

 Conduct a self-appraisal to track progress of performance on KRAs & Complete the

Competencies section.

 Discuss performance with Appraiser and seek feedback on performance

 If required and approved, initiate request for Edit Plan

Final Review

 Conduct self-appraisal to evaluate performance on KRAs

 Discuss performance with Appraiser and seek feedback on performance

 Finalise with Appraiser actual achievement against targets

Appraiser: Role Overview

Every executive who assesses the performance of one or more Appraisees that report to

him/her is an Appraiser.

As the Appraiser is in direct contact with the Appraisee and has a good understanding of the role

and the environment within which the Appraisee operates, he is in the best position to provide

continuous feedback and coaching.

Performance Planning

 Identify appropriate URR for Appraisee

 Approve targets for KRAs

 Approve weightages for KRAs

 Discuss action plan defined for each KRA by Appraisee

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Mid Year Review

 Review the self-appraisal submitted by Appraisee

 Complete competency section

 Discuss performance of Appraisee and provide feedback

 If Edit Plan has been requested for by Appraisee, evaluate the request

and forward to Reviewer

Final Review

 Review Appraisee‘s Self-Appraisal

 Evaluate performance on each KRA and actual achievement against

targets.

 Appraise Behavioural Traits

 Discuss performance with Appraisee and provide feedback and coaching

Reviewer: Role Overview

Appraisers’ Appraiser, who is responsible for reviewing the entire performance process, is

the Reviewer.

The Reviewer has the role of validating performance plans and final ratings to ensure

consistency and objectivity across the teams reporting to his/her Appraisees.

The Reviewer is responsible for obtaining agreement when differing points of view arise

between the Appraisee and the Appraiser.

Performance Planning

 Resolve any conflicts between Appraisee and Appraiser

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Mid Year Review

 No role other than forwarding request for ‗Edit Plan‘ to concerned Head of Product/ Function,

if Appraisee so desires and Reviewer is agreeable for the same.

Final Review

 Review appraisal by the Appraiser on Appraisee‘s Performance and

Development

 Provide final sign-off on actual achievement against targets

 Review appraisal of Behavioural Traits of Appraisee done by Appraiser

 Resolve any conflicts between Appraisee & Appraiser

Head of Dept. (HOD): Role Overview

Head of the Dept. as defined in MAP is the final Approving Authority for permitting

addition of new KRAs as requested by Appraisee. The approval has to given on-line in

the MAP system and once approved; the new KRA gets added automatically to the

respective KRA Master.

The MAP Cycle-

The map cycle for a year starts in April and May with performance planning with mid

year review taking place in October, final review again in April and Normalisation taking

place in May.

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 THE MAP CYCLE
April-May
Performance Planning
(Target setting)

Appraiser

Normalisation Ongoing Mid-year Review

Feedback
May October
Appraisee

Final Review
April

Fig: 2.5 the MAP Cycle

Feedback and Coaching

Performance appraisal process is incomplete without the feedback given to the employee about

his appraisal and his performance. But the way of giving as well as receiving the feedback differs

from person to person and their way of handling and their outlook towards the issue. According

to a popular saying:

―A SUCCESSFUL MAN IS ONE WHO CAN LAY A FIRM FOUNDATION WITH THE

BRICKS OTHERS HAVE THROWN AT HIM.‖

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 Any performance review process is incomplete without the feedback to the employees. The

feedback could be given in the review discussion. Review discussions are semi formal,

scheduled, periodic interactions – usually bimonthly or quarterly – between a manager and

his employee. The basic purpose of the review discussion is to analyze the performance of

the employee in the past to improve the performance of the employee in future.

A review discussion is an opportunity to coach, mentor, learn and understand. The manager

encourages his/her employees to critically reflect over progress made on the Performance

appraisal plan and to develop creative, yet feasible alternatives for problem areas.

The manager uses this opportunity to:

 Review the performance of the each employee individually.

 Discuss the problems faced by the employees during the course of action.

 The solutions tried, and the degree of success achieved in solving the problems faced.

 Revisit with the employee, his/ her annual plan for the remaining time period and

develop revised action plans, if necessary.

Review discussions reassure the employees that each one of them has structured

opportunities for one to one interaction with the manager once every two or three months

during the year.

41
 These opportunities are important as they provide an important chance for performance

monitoring or development mentoring.

The aim of the performance review discussions is to share perceptions, solve the problem

faced during the course of the action, decide on the new goals jointly and provide a feedback

to the employee for the past performance i.e. to look at his strengths and weaknesses and also

help to chart out a career plan for the employee.

The focus of these performance review discussions should not bet o judge the employees‘

past performance; rather it should be to motivate the employee to improve his future

performance and reinforce his good behaviour.

At BHEL too a review discussion takes place which helps in improving the performance of the

employees.

The process of continuous Feedback and Coaching is inherent and critical part of MAP. The Mid

year and the Final reviews are specifically focused on Feedback and Coaching and require the

appraisee and the Appraiser to have a formal feedback session. For Feedback and Coaching to be

truly effective, it should be provided and received on and on- going basis, when used effectively.

Feedback and Coaching is a powerful means of positive impacting performance. Feedback and

Coaching helps an Appraiser in both obtaining information and providing inputs on how an

appraisee is performing and whether or not he/she is headed in right direction.

Feedback is of various types:-

 Positive Feedback

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  Corrective Feedback

 Feedback focused on identifying obstacles to performance

 Feedback for the purpose of sharing information.

All these do take place at BHEL.

Obtaining Agreement

While implementing MAP, occasions might arise when there are different points of view

between the Appraiser and the Appraisee. In such situation, the Appraiser and the Appraisee will

achieve a consensus through a process of discussion. In most cases, the Appraiser is expected to

arrive at an outcome that satisfy both Appraiser and the Appraisee.

In case the Appraiser feels the need, he/she can approach the reviwer for the appropriate

inputs. The reviewer and the Appraiser would arrive to a solution through a process of discussion

that would align the points of view of the Appraiser and the Appraisee. The Appraiser would

discuss the same with the Appraisee to close the issue. The unlikely event of the need for future

escalation, the issue can be taken to the reviewer for a three- party discussion on a case basis.

The Reviewer would have a joint discussion with the Appraisee and the Appraiser where the

decision taken by the reviewer would be final.

Thus, this is how Map gets operated at BHEL.

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3. Differentiation-

To prevent the appraiser giving the same rating to the employees BHEL has also

introduced a differentiation tool, which disallows the people getting the same rating

irrespective of their work thus avoiding the general rating.

It ensures that no two individuals within a group can have the same aggregate score on

the given factors –

• Quality of work

• Cost Consciousness

• Process Orientation

• Contribution to overall objectives of the Group

There are several bands in which the employees lie and no two employees of the same

band can have the same rating, these bands are as such:

E1-E3; E4-E5; E-6 and so forth these are the levels of the executives and those

employees falling in the categories of E1, E2, E3 would not get the same rating.

4. Normalization-

It is the process of categorizing individuals within a department into Excellent / Very

Good / Good / Fair / P, based on Performance Scores.

Principle of ‗Normal distribution‘ is used to define the percentage in each category.

It ensures alignment between individual ratings and performance of the Company, Unit &

Department.

44
 The rating of the employee through a bell-shaped curve which would measure the actual

performance of he employee which can be placed up in the form of the Graph.

For ex- The Performance Rating of A is 12.45 and that of B is 12.4 and that of C is

12.43. If we look normally the can be round of and made 13, 12 and12. But it is actually

not so. There has to be the difference in the rating of the three which can be depicted

through the graph. Thus the Curve depicting the performance of the employee is known

as Normalisation Curve .

These are the tools used in the E-map technique in BHEL.

Tools supporting various features of the E-map-

All the tools described whether a balanced scorecard or the KRA master or normalization are

there to support the features of the E-map system, this is how they are related:

Evolution of the performance management system over the years-

Earlier there was just the annual confidential report as a method to appraise the employees in an

organization but that was only till 2001-2002.

In 2002 till 2007 there came KRA‘s, balance scorecard and A category which was basically

focused in rating the executives on the basis of the objectivity or the targets they were able to

achieve.

45
In 2008 till 2009 apart from the above there was just another category introduced B which dealt

with the behavioral aspect of the employees, thus not only the targets but also aptitude and

attitude get rated now.

In 2009-2010 the A category also got differentiated into two subcategories: A1 and A2, while A1

was quantity based A2 was based on quality. Also there were differentiating bands introduced.

This is the evolution of the performance appraisal system at BHEL.

46
 CHAPTER 4

COMPANY PROFILE

It was a great opportunity for India Government to establish Public Sector Undertakings to boost

Indian economy after 200 years of long British colonial rule. Mr. Jawaharlal Nehru, the first

Indian prime minister established many Public Sector Undertakings and at present there are

about 236 public sector undertaking‘s working under government of India and among them

Bharat Heavy Electrical Ltd. is one of the largest engineering enterprises. Establishment of

Public Sector Undertakings (PSU) had two main reasons one was to provide employment and

second was to become a savior of Indian economy. After Independence private organizations

provided lesser opportunity for employment. However, due to thrust on Public Sectors and due to

excessive job security it was a challenge before Management of PSU to deliver results. The work

assessment of all cadres of workers, supervisors and executives was of topmost priority. In view

of above in PSU‘s, system was introduced for assessing the work etc of employees which was

based on Annual Confidential Report. Annul Confidential Report is a report which present an

overview of an individual performance in the organization. Later these reports were used only to

analyze the performance of the lower grades while performance of executives and top

management was supervised through an E-MAP system while the performance of units was

scrutinized through Balance scorecard system.

Thus, Bhel now has a systematic and easy to understand and nonbiased and fair system for

performance appraisal, a system which has evolved over the years.

47
BHEL manufactures over 180 products under 30 major product groups and caters to core sectors

of the Indian Economy viz., Power Generation & Transmission, Industry, Transportation,

Telecommunication, Renewable Energy, etc. The wide network of BHEL's 14 manufacturing

divisions, four Power Sector regional centres, over 100 project sites, eight service centres

and 18 regional offices, enables the Company to promptly serve its customers and provide them

with suitable products, systems and services efficiently and at competitive prices. The high level

of quality & reliability of its products is due to the emphasis on design, engineering and

manufacturing to international standards by acquiring and adapting some of the best technologies

from leading companies in the world, together with technologies developed in its own R&D

centres.

BHEL has acquired certifications to Quality Management Systems (ISO 9001),

Environmental Management Systems (ISO 14001) and Occupational Health & Safety

Management Systems (OHSAS 18001) and is also well on its journey towards Total Quality

Management.

BHEL has

1. Installed equipment for over 90,000 MW of power generation -- for Utilities, Captive

and Industrial users.

2. Supplied over 2,25,000 MVA transformer capacity and other equipment operating in

Transmission & Distribution network up to 400 kV (AC & DC).

48
 3. Supplied over 25,000 Motors with Drive Control System to Power projects,

Petrochemicals, Refineries, Steel, Aluminum, Fertilizer, Cement plants, etc.

4. Supplied Traction electrics and AC/DC locos to power over 12,000 kms Railway

network.

5. Supplied over one million Valves to Power Plants and other Industries.

BHEL‘s operations are organized around three business sectors, namely Power, Industry -

including Transmission, Transportation, Telecommunication & Renewable Energy - and

Overseas Business. This enables BHEL to have a strong customer orientation, to be sensitive to

his needs and respond quickly to the changes in the market.

BHEL's vision is to become a world-class engineering enterprise, committed to enhancing

stakeholder value. The company is striving to give shape to its aspirations and fulfill the

expectations of the country to become a global player. The greatest strength of BHEL is its

highly skilled and committed 42,600 employees. Every employee is given an equal opportunity

to develop himself and grow in his career. Continuous training and retraining, career planning, a

positive work culture and participative style of management? All these have engendered

development of a committed and motivated workforce setting new benchmarks in terms of

productivity, quality and responsiveness

49
In the post independence era when India was moving towards industrialization the major thrust

of the govt. was in the core sector and this sector and this sector was Given to the public sector,

with this objective heavy electrical (I) Limited was setup in Bhopal in august, 1956 with a view

to reach self-sufficiency in the industrial Product and power equipment. This plant was setup

under technical collaboration of Miss AEL, U.K.

There more plants were subsequently setup Touchy, Hyderabad and Haridwar. With Soviet and

Czechoslovakian assistance in May 1956, Dec 1965 and Jan 1967 respectively .As there was a

need for an integrated approach for the development of Power equipment to be manufactured in

India. Heavy electrical ltd. Bhopal was merged into BHEL in 1974.

About the Jhansi Unit-

By the end of 5th five-year plan, it was envisaged by the planning commission that the demand

for power transformer would rise in the coming years. Anticipating the country‘s requirement

BHEL decided to set up a new plant, which would manufacture power and other type of

transformers in addition to the capacity available at BHEL, Bhopal. The Bhopal Plant was

engaged in manufacturing of transformers of large rating and Jhansi unit would concentrate on

power transformer up to 50 kVA, 132 kV Class and other transformers like Instrument

Transformers, Traction Transformers for Railway etc.

This unit of Jhansi was established around 14 km from the city on the N.H. No. 26 on Jhansi

Lalitpur road. It is called second generation plant of BHEL set up in 1974 at an estimated cost of

Rs. 16.22 crores inclusive of Rs. 2.1 crores for township.

50
Its foundation was laid by Late Mrs. Indira Gandhi the Prime Minister on 9th January 1974. The

commercial production of the unit began in 1976-77 with an output of Rs. 53 Lacks since then

there has been no looking back for BHEL, Jhansi.

This plant of BHEL is equipped with the most modern manufacturing processing and testing

facilities for the manufacture of power, special transformer and Instrument transformers, Diesel

shunting Locomotives and AC/DC Locomotives. The layout of the plant is such that it is well

streamlined to enable smooth material flow from the raw material stages to finished goods. All

the feeder bays have been laid perpendicular to main assembly bay and each feeder bay raw

material smoothly gets converted to sub assemblies which after inspection are sent to main

assembly bay.

The raw material that are produced for manufacture are used only after thorough material testing

in the testing lab and with strict quality checks at various stages of productions. This unit of

BHEL is basically engaged in the production and manufacture of transformers of various types

and capacities with the growing competition in the transformer section, in 1985-88 it under took

the re-powering of diesel, but it took a complete year for the manufacturing to began. In 1987-

88, BHEL has progressed a step further in undertaking the production of AC Locomotives and

subsequently it is manufacturing AC/DC Locomotives also.

SECTIONS OF BHEL JHANSI UNIT

BHEL has many departments, while production and Administrative departments are separate.

Broadly speaking BHEL, Jhansi has two production categories.

51
  Transformer

 Loco

History-

Earlier there were just the confidential reports to describe the performance of all the employees

irrespective of their designation, but now these reports are no more used for the executives who

are the people mainly responsible for the proper functioning because the artisans and the

supervisors work as per what is told to them by these executives, thus, to improve performance

and quality of work this system is introduced; the better the people perform the better pay they

get.

Annual confidential report was in function till 2001-2002, after that e-MAP was introduced and

the tools in it also evolved slowly.

 In 2002-2007: KRA‘S and balanced score card was used with KRA‘S without any

differentiation.

 2008-2009: the Key result areas or KRA‘s were divided into 2 categories A and B; A for

objectivity (KRA based) and B for behavioral traits, there was also a problem faced

which was that appraiser had a habit of rating people with some similar score which

meant that there was no differentiation.

52
  2009-2010: again A category was divided into KRA based and quality based appraisal;

the problem faced earlier was also eliminated by introducing bands for different

employees which meant no two band people can have same type of rating thus getting rid

of the problem of rating everyone the same.

 2010: confidential reports go online.

Mission and vision of BHEL-

The performance of the employees ultimately means how much the employee is able to

achieve his/her goals which ultimately help in attaining the organization‘s goals. Thus the

goals of the organization are :

BUSINESS MISSION

 To maintain a leading position as supplier of quality equipment, system and service in the

field of conversion, transmission, utilization and conservation of energy for application of

energy for application in the areas of electric power, Transportation, oil & gas

exploration and industries.

 Utilize company‘s capabilities and resources to expand business into allied areas and

other priority sector of the economy like defense, communication and electronics.

53
GROWTH

To ensure a steady growth by enhancing the competitive edge of BHEL in existing business new

areas and international market so as to fulfill national expectation

PROFITABILITY

 To provide a reasonable and adequate return on capital employed, primarily through

improvements in operational, efficiency, capacity utilization and productivity

 Generate adequate internal resources to finances the company‘s growth.

FOCUS

To build a high degree of customer confidence by providing increased value for his money

through international standards of product quality, performance and superior customer service.

PEOPLE ORIENTATION

 To enable each employees to achieve his potential, improve his capabilities perceive his

role and responsibilities and participate and contribute to the growth and success of the

company.

 To invest in human resources and continuously and be alive to their needs.

54
TECHNOLOGY

To achieve technological excellence in operation by development of indigenous technologies

and efficient absorption and adoption of imparted technologies to suit business and priorities

and provide competitive advantage to the company.

IMAGE

To fulfill the expectation this stakes holders like government as owner. employees, customers

and the country at large have from BHEL.

VALUES

 Meet commitments made to external & internals customers

 Foster learning, creativity and speed of response

 Respect for dignity and potential of individuals

 Loyalty and pride in the company

 Team planning

 Zeal to excel

 Integrity and fairness in all matters

55
 CHAPTER 5

RESEARCH METHODOLOGY

This chapter talks about the introduction, issues, scope of study, research process and the

conclusion.

INTRODUCTION:

Research design is the arrangement of conditions for collection and analysis of data in a manner

which aims to combine relevance to research purpose with economy in procedure. It is the main

part of a grant application describing a principal investigator's proposed research, stating its

importance and how it will be conducted. A typical research plan has four main sections:

1. Research Design and Methods

2. Background and Significance

3. Specific Aims

4. Preliminary Studies and Progress Report

The designing decisions happen to be in respect of:

 Work already done.

 About the study.

 Reason of the study.

 Places where study is to be conducted.

56
  Type of data required.

 Suitable sources of data.

 Sample design

 Techniques used for data collection.

 Method of data analysis.

 Style in which report will be made.

Categorization of research design:

These are as follows:

 Sampling Design: It deals with the method of selecting items to be observed for the given

study.

 Obsevational Design: It relates to the conditions under which the observations are to be

made.

 Statistical Design: It is concerned with question of how many items are to be observed

and how the information and data gathered are to be analyzed.

 Operational Design: It deals with the techniques by which the procedures specified in the

sampling, statistical and observational design can be carried out.

Specific Aims:

The specific aim is a formal statement of the objectives and milestones of a research

project in a grant application.

57
 The purpose of this section is to clearly and concisely describe what the proposed

research is intended to accomplish.

 Should be hypothesis-based.

 Objectives should be obtainable within the proposed timeframe.

 Study aims should fit together in an overall framework.

 Study should be well-focused rather than broad and diffuse.

 Should include specific research objectives

Background and Significance

The background and significance section states the research problem including the proposed

rationale, current state of knowledge and potential contributions and significance of the research

to the field.

 Critically evaluate existing knowledge, including background literature and relevant data.

 References should reflect an updated knowledge of the field.

 Specify existing gaps that the project is intended to fill.

 Discussion should convey the importance and relevance of the research aims.

 Highlight potential policy or practice impacts.Highlight why research findings are

important beyond the confines of the specific research project (e.g., significance; how

research results can be applied).

58
Objective of research:

 To have a glimpse of the Performance appraisal system at BHEL.

 To check how different it is from others

 To check the employee satisfaction

 To check its effectiveness

 Evolution of this system over the years

 To know about the loophole if any.

 To know about the changes the employees want in the present system.

Issues:

Although this system has made differentiation mandatory however:

 Managers and others are quite busy in work so questionnaire is to be made which

requires less time.

 Tendency to give same score to majority is a major problem it is to be known whether

such problem exists.

 No ambiguous language should be used

 Grade factor has to be taken in into consideration, different grades are evaluated

differently

 Separate questions for the supervisor category and executive category have to be made

 The language of the questionnaire is to be kept simple so that people could easily

understand what is being asked and it is less time consuming.

59
  Questionnaire must contain all the issues related to the systems used by BHEL to rate

people.

Research Methodology:-

1. The research problem: The purpose of this project is to do a study on performance

appraisal system at BHEL which employ constructive active learning pedagogy, teach

higher order thinking skills, and that introduce analyzing skills to MBA students.

2. Extensive literature survey: This is the most important part of any research because it

gives us the understanding to do our research in the right direction .So extensive literature

survey is connected with the problem, which involves knowing the whole system which

is used here.

3. Research design:

For the research information has collected from the HR department of the unit as well as

a Survey is conducted among the employees to know about their opinion. As the purpose

of research study is that of exploration that‘s why a flexible research design has been

chosen which provides opportunity for considering many different aspects of a problem.

60
 Fig: 3.1 flowchart of research design

4. Determining sample design: As the total geographical area of interest is big one, so

Area Sampling is chosen. Area Sampling is quite close to cluster sampling and is often

talked about when the total geographical area of interest happens to be big one.

61
 5. Under area sampling first divide the total area into a number of smaller non-overlapping

areas, generally called geographical clusters, then a number of these smaller areas are

randomly selected, and all units in these small areas are included in the sample. BHEL

being a big industrial area in Jhansi different departments are taken as specific areas for

questionnaire filling.

6. Data collection- data is collected from various resources mostly from the HR department

and then from the managers of various departments so that the methods by which data is

collected could be known. SAMPLE SIZE: 15

7. Analysis of data:

After the data have been collected, we turn to the task of analyzing them through bar

charts, tables the results are analyzed.

8. Generalizations and Conclusion:

After analyzing the finding, various conclusions could be drawn i.e. whether people are

satisfied, how effectively the performance management system is implemented, whether

various changes are required how has it evolved over the years.

Process of forming questionnaire

Writing a Questionnaire is one of the most critical stages in the development process of the

survey. A properly constructed questionnaire can help in getting valid and relevant information.

Some of the points taken into account while forming of questionnaire are:

62
 Each question should relate directly to the objectives of the study.

 Every respondent should be able to answer every question (unless instructed otherwise).

 Each question should be phrased so that all respondents interpret it the same way.

 While translating use back translation to cross check the meanings

 The questions should be such that they get the answers to what is need that is the aim of

the project should be fulfilled.

 The Questions have to be Precise, Clear and Concise.

 If questions are too complicated and are not easy to understand, then there‘ll be a high

"drop out" rate or the information generated will not be appropriate

 Create a sequence for the topics that is unbiased

 Make sure that the questions asked first do not bias the results of the next questions.

While preparing the questionnaire for this project following points were taken into

account:

 Determine different issues from appraisee‘s and appraiser‘s perspective.

 Two separate questionnaires prepared for the provider and the user.

 The users questionnaire is divided into 2 parts:

1. Section A- it consists of those questions related to the supervisors performance

appraisal.

2. Section B- it comprises of questions to be asked from the executive category,

again this section is divided into two parts:

63
  The first part consists of question related to executives who have to

answer as an appraise

 The next consists of questions the executive has to give as an appraiser.

 Determine the type of question that is best suited to answer and provide enough

robustness to meet analysis requirements of the Act in such a way that open-ended text

questions, dichotomous, multiple choice, rank order or scaled, questions are used.

 Use of 5-point likert scale in order to get a clear response.

 For more response rates the questions are brief.

 Avoid asking for identifying information in the beginning of the questionnaire so that

people are not offended in any manner.

 Plain language is used so that respondents can answer quicker and more accurately.

These are the things that have to be kept in mind while preparing the questionnaire in order to

extract maximum informati

64
 Chapter 6

Data analysis

Introduction-

Analysis of data is a process of inspecting, cleaning, transforming, and modelling data with the

goal of highlighting useful information, suggesting conclusions, and supporting decision making.

Data analysis has multiple facets and approaches, encompassing diverse techniques under a

variety of names, in different business, science, and social science domains.

In the given project report volume of data is collected from employees of BHEL about their take

on the present performance appraisal system at the organisation, it becomes necessary to analyze

data, firstly, the data has to be clean enough, that is it should be correct and authentic, so that the

conclusion that we make out of this study is valid thus, the process of data analysis goes as

such:-

The process of data analysis:-

Data analysis is a process, within which several phases can be distinguished:

 Data correction

 Initial data analysis (assessment of data quality)

 Main data analysis (answer the original research questFinal data analysi..

65
Data correction is an important procedure during which the data are inspected, and erroneous

data are—if necessary, preferable, and possible—corrected. Data correction can be done during

the stage of data entry. But it should be seen that, it is important not to throw information away

at any stage in the data cleaning phase. All information should be saved (i.e., when altering

variables, both the original values and the new values should be kept, either in a duplicate dataset

or under a different variable name), and all alterations to the data set should carefully and clearly

documented, for instance in a syntax or a log.

For the analysis of data for the given study too, a lot of correction was needed in order to ensure
that the data entered is not erroneous, besides the data entry done are done carefully, for a wrong
data entry may lead to a wrong conclusion.

Initial data analysis

The most important distinction between the initial data analysis phase and the main analysis
phase, is that during initial data analysis one refrains from any analysis that are aimed at
answering the original research question.

Final stage of the initial data analysis

During the final stage, the findings of the initial data analysis are documented, and necessary,
preferable, and possible corrective actions are taken.

The most essential part of this stage is however the observations which come out as a result of
analysis of the data, the conclusions one could make out after analysis of the data through a
reliability study or a graph or a mean or median.

66
Different ways of Analyzing:-

Several analyses can be used during the initial data analysis phase:

There are several ways of analyzing data, here SPSS software is to analyze the data through
various techniques whether descriptive or reports or tables, it helps in analyzing the data
correctly by the use of a number technique.

In this project report descriptive method of analysis is used using charts and cross tabs.

Summary of the steps followed-

1. Collect data about the performance appraisal scheme at BHEL

2. Prepare questionnaire, for the appraisee and the appraiser too.
3. Get the questionnaires filled.
4. The respondents must belong to both categories for which different performance
appraisal is done, i.e. executives and the supervisors.
5. Conduct a pilot survey( a rotation was conducted in various departments of BHEL)
6. Bring about the changes in the questionnaire whatever is required after conducting the
pilot survey.
7. Then is conducted the real survey.
8. After the survey comes the time of data analysis, through the various techniques
9. Come to conclusion after analyzing the data thoroughly.
10. Conclusion could be drawn about the effectiveness of the system and the areas of change
are deduced.

67
Analysis of the Data-

Now that the data is collected, the real analysis begins here. It is to be analyzed that how aware
are the users, their belief in the government, how many users are there and whether they are
satisfied with the act or not while the reason of the nonusers are also known as to why they
haven‘t used the act till date.
On the issuer side satisfaction level of the provider is to be known apart from their perspective
towards this act, they recommendations and scope of improvement if any.

Demography-

Age:

1.0
age
18-25
26-40
41-60
61 and above
12.0
Pies show counts

33.0

24.0

Fig: 3.1 the distribution of respondents as per their ages

68
Observation-

Through the above chart it could be deduced that maximum people are from the 41 to 60 age
group, followed by 26 to 40 and so forth.

Work experience-

w ork experience
less than 5 years
5-15 years
15-25 years
above 25 years

19.0
22.0 Pies show counts

9.0
20.0

Fig:4.2 work experience

69
Observation-

Most of the people are here with a work experience above 25 years, hence they have seen the
changes in the performance appraisal system through the years.

Evaluation of the performance appraisal system for the supervisors and workers

The appraisal of the people of this category takes place through the annual confidential report.

1. Annual confidential report affects bonuses

Table: 3.1Annual confidential report affects bonuses

N Valid 31
Missing 39
Mean 3.68

Table: 3.2 Annual confidential report affects bonuses

Cumulative
Frequency Percent Valid Percent Percent
Valid strongly agree 1 1.4 3.2 3.2
agree 3 4.3 9.7 12.9
neither agree
nor disagree 1 1.4 3.2 16.1
disagree 26 37.1 83.9 100.0
Total 31 44.3 100.0
Missing System 39 55.7
Total
70 100.0

Observation:

Through the above data analysis, the mean comes out to be 3.68 which is closer to disagreeing
and being neutral thus most of the people feel that the bonuses are ineffective of the CR‘s
although in some extreme cases the bonuses may get affected if the CR‘S are bad.

70
 3. Present system is better than the previous one

Table: 4.21 Present system is better than the previous one

N Valid 30
Missing 40
Mean 1.67

Table: 4.22 Present system is better than the previous one

Cumulative
Frequency Percent Valid Percent Percent
Valid strongly agree 14 20.0 46.7 46.7
Agree 12 17.1 40.0 86.7
neither agree
nor disagree 4 5.7 13.3 100.0
Total 30 42.9 100.0
Missing System 40 57.1
Total 70 100.0

Observation:

The employees strongly are in favor of the present changes and method of annual confidential
report which has now gone online, otherwise people before were quite blindfolded who hardly
knew anything about their report.

Thus it is clear that, the online ACR system would prove to be very effective, but the results are
yet to be seen, there are various changes which could be brought about like telling the people
about the parameters on which they are to be rated, also providing a regular feedback to these
people would provide for the overall satisfaction of the employees.

71
Evaluation of the E-map system for performance appraisal of the executives-

The appraisal system is a web based mapping system in which the roles and responsibilities are
mapped with the key result areas which define what a person has to do then his performance gets
rated by the reporting officer who happens to be the immediate senior, then it goes to the
reviewer and finally the HOD but the rating for an individual is also done by the general
manager, the questionnaire helps in knowing about the effectiveness of the system.

E-MAP is helping in improving the performance of the organization

Table: 4.23 E-MAP is helping in improving the performance of the organization

Cumulative
Frequency Percent Valid Percent Percent
Valid stongly agree 14 20.0 35.9 35.9
Agree 20 28.6 51.3 87.2
Disagree 5 7.1 12.8 100.0
Total 39 55.7 100.0
Missing System 31 44.3
Total 70 100.0

Fig: 4.5 e-map is improving the system

Observation-

Most of the people are satisfied by the E-map system and feel that the performance in the
organization has improved because of this E-map system.

72
 E-MAP is helping in improving the performance of the organization

60

50

40
Percent

30

20

10

0
stongly agree agree disagree

E-MAP is helping in improving the performance of the organization

73
E-map has brought about transparency in the system
Table: 4.24 E-map has brought about transparency in the system

Cumulative
Frequency Percent Valid Percent Percent
Valid stongly agree 7 10.0 17.9 17.9
Agree 24 34.3 61.5 79.5
neither agree
nor disagree 3 4.3 7.7 87.2
Disagree 5 7.1 12.8 100.0
Total 39 55.7 100.0
Missing System 31 44.3
Total 70 100.0

E-map has brought about transparency in the system

60

40
Percent

20

0
stongly agree agree neither agree nor disagree
disagree

E-map has brought about transparency in the system

Fig: 4.6 E-map has brought about transparency in the system

74
Observation-

Most of the people are happy with the present system as everything is known to them no biasing
could happen due to the transparent system, thus E-map has brought about transparenc

Better performers receive better incentives

Table:4.25 Better performers receive better incentives

Cumulative
Frequency Percent Valid Percent Percent
Valid stongly agree 18 25.7 46.2 46.2
agree 21 30.0 53.8 100.0
Total 39 55.7 100.0
Missing System 31 44.3
Total 70 100.0

Better performers receive better incentives

60

50

40
Percent

30

20

10

0
stongly agree agree

Better performers receive better incentives

Fig: 4.7 Better performers receive better incentives

75
Observation-

There is no disagreeing to the fact that better performers get better incentives through this
system, there is no biasing.

Disputes with superiors have no affect on the ratings given by them

Table: 4.26 Disputes with superiors have no affect on the ratings given by them

Cumulative
Frequency Percent Valid Percent Percent
Valid stongly agree 4 5.7 10.3 10.3
agree 23 32.9 59.0 69.2
disagree 12 17.1 30.8 100.0
Total 39 55.7 100.0
Missing System 31 44.3
Total 70 100.0

Disputes with superiors have no affect on the ratings given by them

60

50

40
Percent

30

20

10

0
stongly agree agree disagree

Disputes with superiors have no affect on the ratings given by them

76
Observation-

Although the system is transparent but still employees feel that disputes with superiors do affect
the ratings in some or the other form.

Periodic feedback is a necessity

Table: 4.27 Periodic feedback is a necessity

Cumulative
Frequency Percent Valid Percent Percent
Valid stongly agree 18 25.7 46.2 46.2
agree 21 30.0 53.8 100.0
Total 39 55.7 100.0
Missing System 31 44.3
Total 70 100.0

Periodic feedback is a necessity

60

50

40
Percent

30

20

10

0
stongly agree agree

Periodic feedback is a necessity

Fig: 4.8 Periodic feedback is a necessity

77
Observation-

People feel that feedback at a timely period is a must to improve performance, people if know
where and what to improve they would definitely improve themselves to be better.

Promotions depend upon the ratings

Table: 4.28 Promotions depend upon the ratings

Cumulative
Frequency Percent Valid Percent Percent
Valid stongly agree 7 10.0 17.9 17.9
agree 32 45.7 82.1 100.0
Total 39 55.7 100.0
Missing System 31 44.3
Total 70 100.0

Promotions depend upon the ratings

100

80

60
Percent

40

20

0
stongly agree agree

Promotions depend upon the ratings

78
Observation-

There is no scope of denying that the promotions, totally depend upon the ratings if both the
workers are working almost with same capability then also the one with better ratings would get
an early promotion.

Periodic training is received

TABLE: 4.29 periodic training is received

Cumulative
Frequency Percent Valid Percent Percent
Valid stongly agree 6 8.6 15.4 15.4
agree 33 47.1 84.6 100.0
Total 39 55.7 100.0
Missing System 31 44.3
Total 70 100.0

periodic training is received

100

80

60
Percent

40

20

0
stongly agree agree

periodic training is received

79
Observation-

The employees at BHEL are given timely training to ensure a skilled workforce as per the
present trends and changes.

Appraiser periodically discusses about the goal achievements and areas to improve

Cumulative
Frequency Percent Valid Percent Percent
Valid stongly agree 13 18.6 33.3 33.3
agree 26 37.1 66.7 100.0
Total 39 55.7 100.0
Missing System 31 44.3
Total 70 100.0

Appraiser periodically discusses about the goal achievements and areas to

improve

60

40
Percent

20

0
stongly agree agree

Appraiser periodically discusses about the goal achievements and areas to

improve

Fig: 4.11 Appraiser periodically discusses about the goal achievements and areas to improve

80
Observation-

At BHEL there as a periodic discussion which takes place between the appraiser and the
appraisee about the goal achievements and areas to improve.

Mid year review helps in improvement

Table: 4.31Mid year review helps in improvement

Cumulative
Frequency Percent Valid Percent Percent
Valid stongly agree 13 18.6 33.3 33.3
agree 26 37.1 66.7 100.0
Total 39 55.7 100.0
Missing System 31 44.3
Total 70 100.0

Mid year review helps in improvement

60

40
Percent

20

0
stongly agree agree

Mid year review helps in improvement

Fig: 4.12 Mid year review helps in improvement

81
Observation-

Mid year review helps in improving the performance, specially for the employees who require
some feedback and advises in order to improve their performance, so that the final review comes
out to be good.

Behavioral traits affect the ratings

Table: 4.32 Behavioral traits affect the ratings

Cumulative
Frequency Percent Valid Percent Percent
Valid stongly agree 7 10.0 17.9 17.9
agree 32 45.7 82.1 100.0
Total 39 55.7 100.0
Missing System 31 44.3
Total 70 100.0

Behavioral traits affect the ratings

100

80

60
Percent

40

20

0
stongly agree agree

Behavioral traits affect the ratings

82
Observation-

At BHEL it is not only the capability which affects the ratings but conduct at the office and
behavior also affect the overall rating of an employee.

Disagreement with superiors occur while deciding upon the KRA's

Table:4.34 Disagreement with superiors occur while deciding upon the KRA's

Cumulative
Frequency Percent Valid Percent Percent
Valid stongly agree 4 5.7 10.3 10.3
agree 10 14.3 25.6 35.9
neither agree
nor disagree 9 12.9 23.1 59.0
disagree 16 22.9 41.0 100.0
Total 39 55.7 100.0
Missing System 31 44.3
Total 70 100.0

83
 Disagreement with superiors occur while deciding upon the KRA's

50

40

30
Percent

20

10

0
stongly agree agree neither agree nor disagree
disagree

Disagreement with superiors occur while deciding upon the KRA's

Fig: 4.14 Disagreement with superiors occur while deciding upon the KRA's

Observation-

Disagreement with superiors do prevail sometimes , but is soughted out as appraiser‘s words are
the final words, after the discussion with the employee.

The present system focuses on quality of work not only on the quantity
Table: 4.35 The present system focuses on quality of work not only on the quantity

Cumulative
Frequency Percent Valid Percent Percent
Valid stongly agree 31 44.3 79.5 79.5
agree 8 11.4 20.5 100.0
Total 39 55.7 100.0
Missing System 31 44.3
Total 70 100.0

84
 The present system focuses on quality of work not only on the quantity

80

60
Percent

40

20

0
stongly agree agree

The present system focuses on quality of work not only on the quantity

Fig: 4.15 The present system focuses on quality of work not only on the quantity

Observation-

The present e-map system is maintaining the quality of work here not just quantity

E-map is an effective technique for performance appraisal

Table: 4.36 E-map is an effective technique for performance appraisal

Cumulative
Frequency Percent Valid Percent Percent
Valid stongly agree 17 24.3 43.6 43.6
Agree 17 24.3 43.6 87.2
Disagree 5 7.1 12.8 100.0
Total 39 55.7 100.0
Missing System 31 44.3
Total 70 100.0
85
 E-map is an effective technique for performance appraisal

50

40

30
Percent

20

10

0
stongly agree agree disagree

E-map is an effective technique for performance appraisal

Observation-

The appraisers believe that E-map is an effective technique for appraising as the cumulative
count for agreeing is coming out to be 87.2 which proves that e-map has been a success.

There is a predetermind score in mind while rating a subordinate

Table: 4.37 There is a predetermind score in mind while rating a subordinate

Cumulative
Frequency Percent Valid Percent Percent
Valid stongly agree 5 7.1 12.8 12.8
Agree 18 25.7 46.2 59.0
neither agree
nor disagree 2 2.9 5.1 64.1
disagree 14 20.0 35.9 100.0
Total 39 55.7 100.0
Missing System 31 44.3
Total 70 100.0
86
 There is a predetermind score in mind while rating a subordinate

50

40

30
Percent

20

10

0
stongly agree agree neither agree nor disagree
disagree

There is a predetermind score in mind while rating a subordinate

Fig: 4.18 There is a predetermind score in mind while rating a subordinate

Observation-

People do disagree that there is any predetermined score in mind while evaluating the
employees, but actually there is a score in mind already made while evaluating an employee.

The ratings through the e-map helps in improving the score in the balance scorecard
Table: 4.38 The ratings through the e-map helps in improving the score in the balance scorecard

Cumulative
Frequency Percent Valid Percent Percent
Valid stongly agree 12 17.1 30.8 30.8
agree 27 38.6 69.2 100.0
Total 39 55.7 100.0
Missing System 31 44.3
Total 70 100.0
87
 The ratings through the e-map helps in improving the score in the balance
scorecard

60

40
Percent

20

0
stongly agree agree

The ratings through the e-map helps in improving the score in the balance
scorecard

Fig: 4.19 The ratings through the e-map helps in improving the score in the balance scorecard

Observation-

There is no denying the fact that the rating through the Map gradually affect the score in the
balance scorecard.

Regular feedback should be given

Table: 4.39 Regular feedback should be given

Cumulative
Frequency Percent Valid Percent Percent
Valid stongly agree 19 27.1 48.7 48.7
Agree 20 28.6 51.3 100.0
Total 39 55.7 100.0
Missing System 31 44.3
Total 70 100.0
88
 Regular feedback should be given

60

50

40
Percent

30

20

10

0
stongly agree agree

Regular feedback should be given

Fig: 4.20 Regular feedback should be given

Observation-

It is clear that the appraisers on their part give a regular feedback to their subordinates.

89
There is a need of some confidentiality
Table: 4.40 There is a need of some confidentiality

Cumulative
Frequency Percent Valid Percent Percent
Valid stongly agree 8 11.4 20.5 20.5
Agree 22 31.4 56.4 76.9
neither agree
nor disagree 4 5.7 10.3 87.2
disagree 5 7.1 12.8 100.0
Total 39 55.7 100.0
Missing System 31 44.3
Total 70 100.0

There is a need of some confidentiality

60

50

40
Percent

30

20

10

0
stongly agree agree neither agree nor disagree
disagree

There is a need of some confidentiality

Fig: 4.21 There is a need of some confidentiality

90
Observation-

The appraisers feel that there is a strong need of some confidentiality as the online system has
brought about unnecessary transparency; things which are to be kept hidden are also shown.

Too much transparency is making the system dysfunctional

Table: 4.41 Too much transparency is making the system dysfunctional

Cumulative
Frequency Percent Valid Percent Percent
Valid stongly agree 9 12.9 23.1 23.1
Agree 19 27.1 48.7 71.8
neither agree
nor disagree 4 5.7 10.3 82.1
Disagree 7 10.0 17.9 100.0
Total 39 55.7 100.0
Missing System 31 44.3
Total 70 100.0

Too much transparency is making the system dysfunctional

50

40

30
Percent

20

10

0
stongly agree agree neither agree nor disagree
disagree

Too much transparency is making the system dysfunctional

91
Observation-

People agree that too much knowledge about the system is making the system quite
dysfunctional.

Frequent discussions take place with subordinates on action plan and KRA's
Table:4.43 Frequent discussions take place with subordinates on action plan and KRA's

Cumulative
Frequency Percent Valid Percent Percent
Valid stongly agree 5 7.1 12.8 12.8
Agree 34 48.6 87.2 100.0
Total 39 55.7 100.0
Missing System 31 44.3
Total 70 100.0

Frequent discussions take place with subordinates on action plan and KRA's

100

80

60
Percent

40

20

0
stongly agree agree

Frequent discussions take place with subordinates on action plan and KRA's

Fig: 4.23 Frequent discussions take place with subordinates on action plan and KRA's

92
Observation-

At BHEL appraiser hold frequent discussions with their subordinates to discuss about their
action plan and KRA‘s so that there is no ambiguity people work as per the organization‘s goals
and objectives.

Individuals should create their own action plan

Table: 4.44 Individuals should create their own action plan

Cumulative
Frequency Percent Valid Percent Percent
Valid stongly agree 15 21.4 38.5 38.5
Agree 24 34.3 61.5 100.0
Total 39 55.7 100.0
Missing System 31 44.3
Total 70 100.0

93
 Individuals should create their own action plan

60

40
Percent

20

0
stongly agree agree

Individuals should create their own action plan

Fig: 4.24 Individuals should create their own action plan

Observation-

As people start with their self appraisal they must also decide upon their own KRA‘s so that they
are comfortable with the work they have to perform.

Map score helps in differentiating a nonperformer and a performer

Table: 4.45 Map score helps in differentiating a nonperformer and a performer

Cumulative
Frequency Percent Valid Percent Percent
Valid stongly agree 8 11.4 20.5 20.5
agree 31 44.3 79.5 100.0
Total 39 55.7 100.0
Missing System 31 44.3
Total 70 100.0
94
 Map score helps in differentiating a nonperformer and a performer

80

60
Percent

40

20

0
stongly agree agree

Map score helps in differentiating a nonperformer and a performer

Fig: 4.24 Map score helps in differentiating a nonperformer and a performer

Observation-

The appraisers do believe that tha Map score helps in differentiating a nonperformer from a
performer.

95
Mid year review is necessary for performance improvement
Table: 4.46 Mid year review is necessary for performance improvement

Cumulative
Frequency Percent Valid Percent Percent
Valid stongly agree 12 17.1 30.8 30.8
Agree 27 38.6 69.2 100.0
Total 39 55.7 100.0
Missing System 31 44.3
Total 70 100.0

Mid year review is necessary for performance improvement

60

40
Percent

20

0
stongly agree agree

Mid year review is necessary for performance improvement

Fig: 4.24 Mid year review is necessary for performance improvement

96
Observation-

Appraiser find the mid year review more important than the appraise does for them it is an
important process for providing feedback.

Ratings affect the relation with subordinates

Cumulative
Frequency Percent Valid Percent Percent
Valid stongly agree 9 12.9 23.1 23.1
Agree 23 32.9 59.0 82.1
neither agree
nor disagree 2 2.9 5.1 87.2
Disagree 5 7.1 12.8 100.0
Total 39 55.7 100.0
Missing System 31 44.3
Total 70 100.0

Ratings affect the relation with subordinates

60

50

40
Percent

30

20

10

0
stongly agree agree neither agree nor disagree
disagree

Ratings affect the relation with subordinates

97
Observation-
Ratings which a superior gives to the subordinates do affect the relation with them, if there had
been a bad feedback or rating then people would start carrying grudges.

Opinion about the present appraisal system

Table: 4.48 Opinion about the present appraisal system

Cumulative
Frequency Percent Valid Percent Percent
Valid is very effective, has
increased performance 15 21.4 38.5 38.5
greatly
better than the previous
year's scheme 12 17.1 30.8 69.2
same as the prvious one 3 4.3 7.7 76.9
can't say 9 12.9 23.1 100.0
Total 39 55.7 100.0
Missing System 31 44.3
Total 70 100.0

Opinion about the present appraisal system

is very effective, has

increased performance
greatly
better than the previous
year's scheme
same as the prvious one
can't say
Missing

98
Observation-

Employees believe that the present appraisal system is better than the previous ones and is quite
effective too.

The evaluation thus, tells us about how successful e-map has been in achieving its goals, also to
check out its effectiveness, evolution from what it was before and the changes which employees
would like to add in order to make it better. There are may be some flaws in any system and this
too could be seen in this case thus, the evaluation gives a clear picture of the appraisal system
going on at BHEL.

99
 FINDINGS

 Performance Appraisal system of the company is very minutely

designed and implemented.

 This is helpful in making all the organisations decision such as

promotion, transfer identification of training and development needs

and individual planning.

 Performance appraisal rates the employees in terms of their

performance.

 Performance appraisal takes into account the past performance of the

employees and focuses on the improvement of the future performance of

the employees.

100
 CHAPTER 7

Recommendation and Conclusion

After going through the whole system, it could be concluded that the whole process is a great

evolution from the age long processes which were followed in the various public sector units on

India.

But as every system has some flaws so does this system too, there may be some changes which

could be included in order to make it near to perfect if not perfect. But as a whole as a PSU it has

evolved a lot in terms of the various HR related activities.

Conclusion-

After going through the functioning of the performance management system at BHEL, it could

be said that in order to bring about transparency it has brought about an online system through

which people could see what they have been rated where do they stand in terms of their ratings

on what parameters they are being rated, feedback given to them by their seniors and so forth.

The system for performance appraisal is different for the supervisors and the executives while

the workers and supervisors are still going on with their annual CR‘s the e-map system exists for

the executives. The change that BHEL has brought from this year is that they have made the

confidential reports online now so the supervisors can know about the ratings from the

supervisors thus making the system transparent for there was a problem that the

supervisor‘srating depended upon the relation with their superiors.

101
The E-map system has been quite effective with people being satisfied in being able to make

their own action plan and key result areas, also the appraiser can change these KRA‘s if it does

not go as per the work required out of the people. The appraisal process starts with the self

appraisal technique leading to appraisal by the immediate superior leading to reviewing from the

reviewing officer then to the head of the department and so forth, thus rating does not depend on

rating from only the superiors.

Although people do have problem that the relation with superiors may hamper their performance,

but in a way it is a transparent technique, in which continuous feedback is given, reasons are

given for negative feedback and regular training is given in case of improvement or need.

The superiors give quality time for their subordinates growth too guidance and advices are given

through the Mid year review which helps in improving the yearly performance. There is also a

cascade of performance which helps in achieving the organization‘s goals, individuals align their

goals as per the departments which sets its agenda as per the unit‘s agenda which decides its

objectives as per the mission and vision of the company. To keep a check of each of unit‘s or

department‘s work there is this balance scorecard for appraisal.

Thus we see that the appraisal technique at BHEL is made keeping in mind each and every

aspect of the requirements for a satisfactory and efficient work force.

People differ in their abilities and their aptitudes. There is always some difference between the

quality and quantity of the same work on the same job being done by two different people.

Performance appraisals of Employees are necessary to understand each employee‘s abilities,

competencies and relative merit and worth for the organization.

102
Performance appraisal rates the employees in terms of their performance. Performance appraisal

takes into account the past performance of the employees and focuses on the improvement of the

future performance of the employees.

Performance Appraisal system of the company is very minutely designed and implemented. This

is helpful in making all the organisations decision such as promotion, transfer identification of

training and development needs and individual planning.

To conclude we would sat that the changes are for the betterment of the organisation. The

employees in the organisation are rated on the basis of different area of job work.

Issues related to performance related perks

There are also certain problems which arise, with the implementation of this performance

appraisal system, although BHEL has tried to introduce a system without any flaws still there is

scope of some changes as there are certain issues which are yet to be handled, these issues are as

such:

1. Managers are uncomfortable as transparency makes them answerable and giving reasons

for the rating they have done makes it really tough for them to answer.

2. Tendency to give same score to majority.

3. More vocal employees get better scores, this way a good but silent performer would be

wronged.

4. People with softer targets get better scores, as it is the employees who prepare their

KRA‘s.

103
 5. Assessment on absolute performance vs relative ranking in relation to other employees.

6. Difficult to justify NIL payment to lowest performer as he also contributes to overall

Target.

7. Grade factor has large variation at the higher levels

8. Performance Factor across 5 levels will create huge difference in pay-out within same

grade affecting Team work.

9. Performance Rating of Directors & CMD, there is no one to rate them they are the

supreme powers.

10. A person performing individually although very hard may not be contributing to the

organization‘s goals.

11. The rating is done even by the general manager who hardly knows anything about the

employee‘s behavior and potential thus, this is a kind of blind appraisal.

12. Supervisors and workers have no clue about the parameters on which they are to be rated

in their CR‘s.

Recommendations-

After evaluating whole of the performance appraisal system at BHEL there are some changes

which could be introduced to improve the performance to even higher level:

1. Rather than getting the ratings filled by the general manager for an individual employee it

must be limited only to the head of the department who knows the employee and his

potential and also the work he is doing, thus, the rating must only be done by those who

know the employee and the related work.

104
2. There must not be any sought of biasing on the part of the managers, the appraisal must

be based on the performance solely this must be seen by the HOD, who must review the

ratings to find out if there is any kind of biasing going on

3. There must not be any predetermined score in mind while rating the employees, for their

performance it must not be so that they get rated only for some incident, etc.

4. The director and general manager could be rated on the basis of subordinate appraisal,

where the juniors appraise the senior for their efficiency in working and managing skills.

5. Raters should be given training about the method of evaluation.

6. There should be the regular conduction of the Post-Appraisal Interviews.

7. There may be more transparency introduced for example just now through E-map people

can only see analysis not the result

8. Equal marking is not allowed for the same band it may be so that the people are

performing at par but get different ratings this demotivates them, so bands within a band

so that the difference lies based on the performance.

9. Loop holes where improvement could be brought about must be told

10. Parameters for CR must be told.

11. It must not be so that some people have soft targets and some do not at all for it may

bring load on one and the other might be achieving targets easily with hardly any

complicated work in their kitty.

12. It should be taken care of that feedback is given at a regular basis.

105
 BIBLIOGRAPHY

BOOKS

 Prashad L.M. (2004) Human resource management. Millennium Edition, Prentice

Hall of India , New India

 Ashwathapa, Human resorce management and personnel management

 Kotller P, (2000), Marketing Management Millennium Edition, Prentice Hall of

India, New Delhi.

 Kothari C.R. (2001) Research Methedology 4th edition, New age publication

IN-HOUSE MAGAZINE…. PAMPHLETS, BROCHURES

Websites………

www.BHEL.co.in

www.BHELindustry.co. in

(v)
 ANNEXURE

Questionnaire

This questionnaire has been prepared for the core purpose of study there are no hidden motives. You are
requested to kindly spare your valuable time to fill this questionnaire.

Age 1) 18-25 2) 26 -40 3) 41 -60 4) 61 and above

Work Experience 1) less than 5 years 2) 5-15 years 3) 15-25 years 4) Above 25
years

Category 1) Supervisor and below 2) Executives and above

If category choice is 1 please answer Section A else Section B

Section A (Workers and supervisors)
Please mark the following statements as strongly agree/ agree/neither agree nor disagree/disagree/
strongly disagree
Strongly Agre Neither Disagree Strongly
agree e agree nor disagree
disagree
1.a Annual confidential report affects bonuses
2.a I could check annual confidential reports (ACR) online
3.a Online CR‘s have brought about transparency in the whole system.
4.a CRs should be reviewed periodically rather than annually
5.a Timely feedback is given for performance
6.a Superiors give reasons for negative feedback in confidential reports
7.a Behavior should be a parameter to be rated in the CRs
8.a Parameters should be told on which rating is to be done
9.a Promotions are based on the ratings of CR
10.a Relation with superiors affect the confidential report
11.a Present system is better than the previous one.

Section B (Executives and above)

Answer the following as an appraisee:
12. How much time do you spent for your performance planning?
1) A few minutes 2) Half an hour 3) More than half an hour
13. In your opinion performance management system depends upon:
1) Working capability/potential 2) Behavior 3) Relation with superior 4) Honesty
5) Hours of work

(vi)
Please mark the following statements as mentioned:
Strongly Agree Neither Disagree Strongly
agree agree nor disagree
disagree
E- Map is helping in improving the
14.b1 performance of the organization
15.b1 E-Map has brought about transparency in
the system
16.b1 Better performers receive better incentives
17.b1 Disputes with superiors have no affect on
the ratings given by them
18.b1 Periodic feedback is a necessity
19.b1 Promotions depend upon the ratings
20.b1 Periodic training is received
21.b1 Appraiser periodically discusses about the
goal achievements and areas to improve
22.b1 Mid year review helps in improvement
23.b1 Behavioral traits affect the ratings
24.b1 Disagreement with superiors occur while
deciding upon the KRAs
25.b1 The present system focuses on quality of
work not only on the quantity
Answer the following as an appraiser:
26. How much time do you spent for your subordinate’s performance planning?
1) A few minutes 2) Half an hour 3) More than half an hour

Strongly Agree Neither Disagree Strongly

agree agree nor disagree
disagree
27.b2 E-map is an effective technique for
performance appraisal
28.b2 There is a predetermined score in mind
while rating a subordinate
29.b2 The ratings through the e-map helps in
improving the score in the balance
score card
30.b2 Regular feedback should be given
31.b2 There is a need of some confidentiality
32.b2 Too much transparency is making the
system dysfunctional
33.b2 Frequent discussions take place with
subordinates on action plan and KRA‘s
34.b2 Individuals should create their own
action plans
35.b2 MAP score helps in differentiating a
nonperformer and a performer
36.b2 Midyear review is necessary for
performance improvement.
37.b2 Ratings affect the relation with
subordinates
38. Opinion about the present appraisal system:
1) Is very effective, has increased performance greatly 2) Better than the previous year‘s scheme
3) Same as the previous one 4) Poorer than the previous one 5) Can‘t say
39. Suggestions to improve the present performance management system
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
Thank You….

Title of the Thesis: - “Study of Recruitment Process in India Infoline”

Problem Definition:

India Infoline is facing Recruitment inefficiencies on regular basis that hampers

the normal processing of work as the number of people to be maintained is very
large in number due to which the recruitment staff also faces a lot of hurdles and
is imposed with a lot of pressure.

Main reasons for this problem are:

 Keeping up with the recruitment maintenance of more than 18k people.

 Recruitment of all branches in PAN India is not local to them but is done in
the Central HRD in Thane branch, Maharashtra which sometime causes
connectivity problems.
 HRD in India Infoline is not very old not even as old as the company which is
why systems are not laid down properly.
  The company has undergone a lot of diversification since its inception i.e. in
just 8-9 yrs
 High Attrition

This requires the problem to be studied in detail to suggest possible measures to

be undertaken:

Research objective:

 Lay down a proper Recruitment Mechanism.

 Find out the loop holes in the entire recruitment cycle and altering them.
 Reduce the Turn out Time and hence improve the effectiveness of the
system.

SWOT Analysis of the Study to be undertaken:

a) Strengths:
 Separate recruitment staff not involved in any other HR activities
therefore no overlapping in the study.
 Known sample to be studied which is obligatory to answer in the right
manner as the research is supported by the department.

b) Weakness:
 Very weak database to support the study.
  Difficult to take the response from functional managers in other
departments involved in the recruitment process for their respective
department recruitments.

c) Opportunity:
 Easy to implement changes as the HRD is not too old that changes
cannot be made.

d) Threats:
 The recruitment team works in connection with other teams also (like
offers, joining, data maintenance team, T&D team, audit team, etc) and
to improve the recruitment process by changing all these teams is a
difficult to make.

(vii)