Study on Performance Appraisal with Special

Reference of National Fertilizer Limited

A training report submitted in partial fulfillment of the requirement for the degree of

MASTERS OF BUSINESS
ADMINISTRATION
(2017-2019)

Submitted by:
Name of Student: Shivani
MBA – 3RD Semester
University Roll No.: 3 1 4 5 4

MALWA COLLEGE, BATHINDA

Affiliated to Punjabi University, Patiala.

DECLARATION
I, Shivani, student of Masters of Business Administration from “Malwa College Bathinda”,
hereby declare that I have completed Internship on “The Study on Performance Appraisal
System” at National Fertilizers Limited, Bathinda, as part of the course requirement.

I further declare that the information presented in this project is true and original to the best of
my knowledge.

Shivani

MBA- 3RD
ACKNOWLEDGEMENT
“Acknowledgement is an art, one can write glib stanzas without meaning a word, on the other
hand one can make a simple expression of gratitude” I take the opportunity to express my
gratitude to all of them who in some or other way helped me to accomplish this challenging
project in NATIONAL FERTILIZERS LIMITED, BATHINDA.

It is my privilege to acknowledge profound gratitude and indebtedness toward my respected and

learned teachers for their inspiration, constructive criticism and valuable suggestions. Their
precious guidance and unrelenting support kept me on track through my training. I want to thank
all the employees of NATIONAL FERTILIZERS LIMITED, BATHINDA for their warm
support and co-operation in successful running of the training work.

I am highly obliged to Mr. Kulwant (Asst. HR Manager) and Mr. Nandan, Mr. Mayank, Mrs.
Tripti and Mr. Kuldeep my mentors, who timely advice & constructive criticism helped me in
completing the project.

SUBMITTED BY

Shivani

University Roll No: 31468

Semester: 3rd
TABLE OF CONTENTS

CHAPTER TITTLE

1 Executive Summary

2 Company profile

3 Introduction to the study

Background of the problem task
undertaken
Need of the study
Scope of the study
4 Objective of the study
5 Research methodology

Limitation of the Study

6 Data analysis and interpretation

7 Finding

8 Suggestion and Recommendation

Suggestion
Conclusion
9 Appendices

10 Bibliography
 CHAPTER - 1
INTRODUCTION TO
COMPANY
INTRODUCTION

NFL, a Schedule ‘A’ & a Mini Ratna (Category-I) Company, having its registered office at New
Delhi was incorporated on 23rd August 1974. Its Corporate Office is at NOIDA (U.P). It has an
authorized capital of Rs. 1000 crore and a paid up capital of
Rs. 490.58 crore out of which Government of India’s share is 74.71 % and 25.29 % is held by
financial institutions & others.

MANUFACTURING PLANTS

NFL has five gas based Ammonia-Urea plants viz. Nangal & Bathinda plants in Punjab, Panipat
plant in Haryana and two plants at Vijaipur at District Guna, in Madhya Pradesh. The Panipat,
Bathinda & Nangal plants were revamped for feed stock conversion from Fuel Oil to Natural
Gas, an eco-friendly fuel during 2012-13 / 2013-14. Vijaipur plants of the company were also
revamped for energy savings & capacity enhancement during 2012-13, thus increasing its total
annual capacity from 20.66 LMT from 17.29 LMT, an increase of 20%. The company currently
has a total annual installed capacity of 35.68 LMT (Re-assessed capacity of 32.31 LMT) & is the
2nd largest producer of Urea in the country with a share of about 16% of total Urea production in
the country.
Company has a Bio-Fertilizers Plant at Vijaipur with a capacity of 600 tonnes of solid & liquid
Bio-Fertilizers to produce three strains of Bio-Fertilizers viz. PSB, Rhizobium and Azotobacter
are produced.

IMPORTS & TRADING

Apart from manufacturing business, the company is also expanding its business, in a consistent
& phased manner, by way of imports and trading of various agro-inputs like Non-Urea
Fertilizers, certified seeds, Agrochemicals, Bentonite Sulphur, City compost through its existing
PAN India dealer’s network under single window concept.
MARKETING SETUP

NFL Marketing Network comprises of Central Marketing Office at NOIDA, three Zonal Offices
at Bhopal, Lucknow & Chandigarh, 16 State & 2 UT Offices and 35 Area offices spread across
the marketing territory of NFL.
The company has 10 Soil testing laboratories (6 Static & 4 Mobile) with annual capacity of
testing around 65000 samples for Macro Nutrients and 10000 samples for Micro Nutrients and
are fully dedicated to the testing of soil health helping farmers to facilitate balanced fertilization.

RESEARCH CENTERS

The company has a R&D set up at each Manufacturing Unit i.e. at Nangal, Panipat, Bathinda and
Vijaipur as well as at Corporate Office (Noida) which are primarily focused and undertakes
various innovation studies to develop new, efficient & safer processes, value added products and
suggest implementation of energy saving schemes.

IMPLEMENTATION OF ENERGY SAVING SCHEMES

The company has recently implemented various energy saving schemes such as Purge gas
recovery plant at Vijaipur-II, hooking up of old redundant Ammonia Synthesis Converter (S-
200) with New Converter (S-300) at Panipat & Bathinda Units and additional 2 nos. cooling
tower cells in Urea Plant at Vijaipur-II. The company has also commissioned two roof top solar
plants of 100 KW & 90 KW at Corporate Office, Noida and Bathinda Unit.
Further, in order to meet the strict energy norms fixed by GoI under New Urea Policy 2015
w.e.f. 01-04-2018, though the investment is economically unviable without suitable dispensation
as sought by NFL from GoI, the company is in the process of implementing energy saving
schemes i.e. Installation of Gas Turbine Generator along with Heat Recovery Steam Generation
Unit at Panipat, Bathinda & Nangal Units with an estimated cost of Rs. 700 crore.
The company is also going to implement energy saving schemes at Vijaipur-I & II to further
bring down the energy consumption.
 NEW INVESTMENTS

1. Bentonite Sulphur Plant of 25000 MTPA capacity at Panipat Unit with a cost of Rs. 44 crore has
been commissioned on 20th December 2017
2. Setting up Di-nitrogen Tetroxide (N2O4) plant at Vijaipur Unit on Built Own Operate & Supply
basis (BOOS) for ISRO
3. R&D initiative with M/s IARI, New Delhi to design & develop an applicator & logistic
arrangement for application of Urea Ammonia Nitrate (UAN) which is envisaged to be
manufactured at Nangal Unit.
Besides above, the company is also envisaging the following investments:
1. Construction of Natural draft prilling towers at Panipat & Bathinda Units to improve Urea prill
size with estimated cost of Rs. 90 crore (Rs. 45 crore each for Panipat & Bathinda Unit).
2. Agro Chemical plant at Bathinda for production of farm insecticides
3. Di-Ammonium Phosphate (DAP) plant of 10 LMT per annum along with Phosphoric Acid Plant
in Algeria under buy back arrangement & in Joint Venture mode with GSFC, RCF and NMDC.
4. Seed processing plants at Indore, Bathinda and Panipat.

JOINT VENTURE

NFL in collaboration with M/s EIL and M/s FCIL has formed a Joint Venture (JV) Company as
Ramagundam Fertilizers & Chemicals Limited (RFCL) to revive the old FCIL plant at
Ramagundam. The equity participation in the joint venture is 26% each by NFL & EIL, 11% by
FCIL and 11% by State Government of Telangana. This plant shall have the annual Urea
capacity of 12.71 LMT. The zero date of the project is 25th September 2015 and is targeted to be
completed by end of December 2018. The project is in progress.

AGRICULTURE EXTENSION SERVICES

The company is also playing a pivotal role in extending various agricultural extension services
such as educating the farmers on judicious use of fertilizers along with total know-how on
improved and scientific methods of cultivation to improve soil productivity. The company is
providing support to the farmers by undertaking soil analysis for Macro & Micro Nutrients
through its static & mobile soil testing vans for balanced use of fertilizers.
The company participates in various Krishi Melas organized by leading agriculture universities
for direct & effective communication with farmers.
SUSTAINABLE DEVELOPMENT

Towards sustainable development, NFL has taken various initiatives in adopting best practices
for environment management, energy conservation and social upliftment. Some of them include
conversion of its three Fuel Oil based plants on natural gas which is a cleaner and greener fuel,
switch over of coal fired boilers on gas, installation of 100 KW & 90 KW Solar Power Plant at
Corporate Office and Bathinda unit. The company is also promoting use of LED lights at its
Plants, Offices and Townships towards its attempt to reduce the carbon footprints.

PLANTS OF NFL IN INDIA

CORPORATE SOCIAL RESPONSIBILITIES

The Company is equally committed towards society by taking responsibility for the impact of
their activities on customers, employees, shareholders, communities and the environment in all
aspects of their operations. Besides focusing primarily on the areas like Children Education,
Women Empowerment, Health and hygiene, etc., the company also aims to conserve the natural
resources for their efficient and sustainable use. Company has taken initiatives in the area of
water conservation by renovation and maintenance of old and degraded water bodies,
construction of stop dams in the severe water deficient regions of Central India. Company is also
adopting focused approach for introduction of Non-Conventional sources of energy by installing
Solar Water heating systems, solar lights, solar lanterns etc. in the old age homes and in the
remote and backward villages where electricity is the major problem.
PRODUCTS PRODUCED BY NFL

NFL is engaged in manufacturing and marketing:-

1. Neem Coated Urea
2. Three strains of Bio-Fertilizers (solid & liquid)
And other allied Industrial products like
1. Ammonia
2. Nitric Acid
3. Ammonium Nitrate
4. Sodium Nitrite
5. Sodium Nitrate.
The brand name of the company is popularly known in the market as ‘KISAN’.
The company has also started production of certified seeds under its Seeds Multiplication
Program for sale under its own brand name as “KISAN BEEJ.”
VISION & MISSION

Vision:
“To be a leading Indian company in fertilizers and beyond with commitment to all
stakeholders.”

Mission:
“To be a dynamic organization committed to serve the farming community and other customers
to their satisfaction through timely supply of fertilizers and other products & services;
continually striving to achieve the highest standards in quality, safety, ethics, professionalism,
energy conservation with a concern for ecology and maximizing returns to stakeholders”.
MANPOWER POSITION

 Total manpower of the company as on 30-06-2017 was 3464 against 4068 as on 01-04-
2014.
 Total manpower of the company as on 31-01-2018 was 3443 against 3464 as on 30-06-
2017.

Manpower status as on 31.01.2018

Unit Name Total Executives Non-Executives

Employees

Nangal 1066 316 750

Bathinda 556 274 282

Panipat 545 268 277

Vijaipur 699 393 306

CMO 393 265 128

C.O 184 166 18

Total 3443 1682 1761

ABOUT NFL PLANT BATHINDA

Bathinda unit of NFL was commissioned on 1st Oct 1979 based on gasification technology of
Feed Stock on LSHS /Fuel Oil with the annual installed capacity of 511500 MT of Urea.
Subsequently as per guidelines of GOI, in order to reduce subsidy burden & Carbon footprint,
NFL revamped the Bathinda Unit on LSTK basis for changeover of Feedstock from LSHS/FO to
Natural Gas and commercial production on Gas was commenced during Jan 2013.

SALIENT FEATURES OF BATHINDA UNIT

Installed Capacity: 511500 MTPA

Capital ₹ 349.41 Crores

Investment:
Initial October 1, 1979
Commencement of
Production:
Commencement of March 11, 2013
Production on Gas
after Revamp:
Process

Ammonia: HTAS Steam Methane Reforming (SMR) Technology

Urea: Mitsu Toastsu total Recycle C Improved

Raw material: Coal , LNG/ RLNG, Power, Water

Captive Power 2 x 15 MW
Plant:
PAY SCACLE FOR EXECUTIVES

Designation Revised Pay Scale (in ₹) Code

Foremen/Exe/PS 12600 – 32500 E0
Engineer/PO/SPS 16400 – 40500 E1
Asstt. Manager/ E.S. 20600 – 46500 E2
Dy. Manager 24900 – 50500 E3
Manager 29100 – 54500 E4
Sr. Manager 32900 – 58000 E5
Chief Manager 36600 – 62000 E6
Dy. General Manager 43200 – 66000 E7
General Manager 51300 – 73000 E8
Executive Director 62000 – 80000 E9

PAY SCACLE FOR NON – EXECUTIVES

Designation Revised Pay Scale (in ₹) Code

5900 – 10150 W0
6700 – 11900 W1
8200 – 15000 W2
Jr. E A Grade – II 9000 – 16400 W3
Jr. E A Grade – I 9300 – 17950 W4
E A Grade – III 9500 – 19500 W5
E A Grade – II 10000 - 22400 W6
E A Grade – I 10800 – 24950 W7
E A Spl. Grade 11800 – 28900 W8
Sr. E A 11800 - 30500 W9
Sr. E A SG 12600 – 32500 W10
Sr. E A SG - II 16400 – 40500 W11
Sr. E A SG – III 20600 – 46500 W12
AWARDS & ACCOLADES

PRODUCTIVITY AWARDS

AWARDS YEAR UNIT

Productivity Award by NPC 1997-98 Bathinda

Certificate of Merit from NPC 1997-98 Bathinda

Certificate for Productivity Improvement by National 1991-92 Bathinda

Productivity Council

SAFETY AWARDS
AWARDS YEAR UNIT
1st prize for achieving largest reduction in 2009 Bathinda
Accident Frequency Rate in chemical
industry from Punjab Industrial safety
Council, Chandigarh
Suraksha Puruskar for adopting 2004 Bathinda
Occupational Safety and Health
Management Systems from NSC.
Yogyata Praman Patra – 2001 award by 2003-04 Bathinda
NSC
National Safety Award – 2002(Runner 2003-04 Bathinda
up)
Yogyata Praman Patra – 2003 2003 Bathinda

Prashansa Puraskar – 2000 award by NSC 2000 Bathinda

National Safety Award 1999 & 2000 Bathinda

Safety awards (5 Nos.) by Punjab Govt. 1998 & 1999 Bathinda

 EMPLOYEES' SKILL AWARDS
AWARDS YEAR UNIT
Punjab State Krit Veer Award 2003 Bathinda

Vishwakarma Rashtriya Puraskar from the 1999 Bathinda

Ministry of Labour & Employment, GOI
Krit Vir awards to 13 employees by Punjab 1995, 96 & 98 Bathinda
Govt.
Vishwakarma Rashtriya Puraskar to three 1993 Bathinda
employees.
Krit Award to 6 Employees by Punjab State 1993 Bathinda
Labour Deptt.

OTHER PRESTIGIOUS AWARDS & RECOGNITIONS

AWARDS YEAR UNIT
ICWAI National Award-2009 for 2009-10 Bathinda
excellence in Cost Management

1995 Bhatinda
Udyog Excellence Gold Medal and
Citation by Industrial Economic Forum,
GOI
INTRODUCTION TO HR DEPARTMENT OF NFL
In NFL Bathinda there are total 7 sectors like:-

 Transport
 Industrial Relation and welfare
 Estate
 Legal
 Medical
 Administration
 Establishment
 Public Relation

Major activities undertaken by HRD are:

Recruitment and Training of Trainees at various levels viz. officers, supervisors and workers.
Organizing of developmental and functional programs based on training needs, as judged in the
area of updation of technical, supervisory and managerial skills longwith specialized
requirements from time to time.
Imparting of training to people from other organisations within India and abroad.
Formulate policies regarding manpower deployment on hire to other organisations within India
and abroad.
The services which have been developed in the area of Training and Development within the
organisation are readily available to other organisations within the laid policies and procedures
of the Company.

TRANSPORT
Transportation Section of Personal and Administration Department is looking after the
transportation requirement for official use. Currently there are 20 vehicles under the control of
section which include cars, school buses, ambulance, jeeps, motorcycle, tractor, Crain, fire
engine and etc. The registration of new Vehicle is also arranged by the by the transportation
section. All the vehicles are comprehensively issued for a period of 1 year. The vehicles are also
get passed from MBI/DTO, the day to day repair of the vehicles is arranged from the local
market or from the authorized declares of vehicles.
INDUSTRIAL RELATION AND WELFARE
Industrial Relation refers to all types of relationships between all types of parties concerned with
the industry. Industrial relation are a relationship between management and employees and their
organization that characterize and grow out of employment.

In this section, there are various acts like ESIC act, Factory Act 1948, workmen compensation
act, trade union act, etc. and there are various social schemes like basic pay and DA, death
benefit scheme and in this scheme all employees contribute 25 rupees but now this scheme is no
more from last few years.

The security Scheme of NFL

5 Restricted Holidays

12 Casual Leaves

20 Medical leaves

33 Leave with Wages

90 Maturity Leaves

Objectives of Industrial Relation

 Safeguard the interest of labor and management:- To safeguard the interest of labor and
management by securing the highest level of mutual interest.
 Enhance economic status of workers:- To improve the economic status of the workers by
improving wages and by helping the workers in evolving sound budget.
 Eliminate strikes and lockouts:- To Eliminate, as far as possible and practicable, strikes
and Gheraos by providing reasonable wages and by solving their problems.
 Participation of workers:- To provide an opportunity to the workers to have a say in the
management and decision making. To improve the worker does strength with a view to
solve their problems through mutual understand.

WELFARE SCHEME
1. Special Death Benefit Schemes:

In order to provide better security to employees of NFL, Bathinda Unit in the event of death of
any employee, due to any reason during service, all the employees of NFL Bathinda Unit
contribute an amount Rs. 60/- each from their salary and the total amount so collected is paid to
the deceased employee.
 2. Benevolent Scheme

In terms of benevolent scheme in the event of death of an employee of NFL, under any
circumstances during service, all employees of the company contribute an amount of Rs. 25/-
each from their salary and the total amount so collected is paid to widow/widower of the
deceased employee, but now this scheme is no longer in function.

3. Special Welfare Fund Scheme

A special welfare fund has been constituted for undertaking welfare project in the neighborhood
of the company’s offices or for giving relief to inside the establishment.

4. Self Insurance Of Outstanding House Building Advance.

A self insurance scheme for the purpose of providing insurance cover for outstanding HBA and
interest due thereon is in vogue in the company within the following Parameters:-

 Employees who have taken HBA from the company, contribute @ Rs. 2/- per one
thousand per annul w.e.f. 1/4/2000 on the amount of HBA outstanding.
 The fund so generated is utilized to meet the liability of the deceased employees
towards repayment of HBA and interest accrued thereon.
 The fund is managed by a governing body comprising of representation of
management officer’s Association and recognized unions.

MEDICAL
Applicability

All the regular employees of the company, company Trainees, CISF staff posted at units, and to
their dependent family members but does not include Apprentices under the Apprentice Act
1961.

Family means employee’s wife/husband, children and step children (including legally adopted
children), Parents, wholly dependent on the employee.

Dependency

The Parents will be considered as wholly dependent on an employee if the monthly income of
the parents or the combined monthly income of both parents from all sources accounted together
those not exceeds Rs. 7,000/- per month and in the case of son and daughter, for son till he attain
the age of 25 years or starts earning and for daughter till she starts earning or get married will
treated as dependent family members.
Monetary ceiling for OPD treatment:

Maximum limit for OPD (Outpatient department) treatment per family unit including dependent
parents in a year for all diseases will be 1.5 months basic pay + DA of the employee as on 1st
April of the financial year.

Objective:-

The objective of the rules is to provide medical facilities to the regular employees of the
company and their dependent family members relating to reimbursement.

ESTATE
This section is related to land, it deal with r handle those activities or problems which is related
to land, for example there is ‘A’, ‘B’, ‘C’, and ‘D’ type quarters and the company has 671 acres
land.

Quarter Adjustment Rules:

A-Type - Any employee

B-Type - Minimum Basic pay Rs. 10,400/-

C-Type - Minimum Basic pay Rs. 21,220/- and this for Assistant Managers

D-Type - Minimum pay Rs. 29,980/- and this for Managers

There is one Bungalow for G.M.

Numbers of Quarters:-

A-Type - 380 quarters

B-Type - 352 quarters

C-Type - 096 quarters

D-Type - 030 quarters

Rules

1. In case of transfer - Employees can retain quarter for 2 month

2. In case of Retirement - Employees can retain quarter for 4 month
3. In case of Death - Employees can retain quarter for 6 month
4. In case of Resignation - No specific time period mention
LEGAL

This section of HR department deal with cases related to NFL or handle legal formalities or
procedures. If there is any case then company has to win the case in any situation right or wrong.

PUBLIC RELATIONS

Through PR Department Company create and maintain the relations with public and media. Its
PR Department duty to create and maintain a positive image of NFL and also create a strong
relationship with the audience. Company has a magazine “VANI” in which every information is
given related to every department. All news which is given in newspaper relating NFL is a work
of public relation department.
 CHAPTER – 2
INTRODUCTION TO
TOPIC
MEANING OF PERFORMANCE APPRAISAL

Performance appraisal is the process of obtaining, analyzing and recording information about the
relative worth of an employee. The focus of the performance appraisal is measuring and
improving the actual performance of the employee and also the future potential of the employee.
Its aim is to measure what an employee does.
Performance Appraisal is the systematic evaluation of the performance of employees and to
understand the abilities of a person for further growth and development. Performance appraisal is
generally done in systematic ways which are as follows:
1. The supervisors measure the pay of employees and compare it with targets and plans.
2. The supervisor Analyses the factors behind work performances of employees.
3. The employers are in position to guide the employees for a better performance.

DEFINITION

Performance Appraisal is a systematic and objective way of evaluating both work related
behavior and potential of employees.

FEATURES

The main characteristics of “Performance Appraisal” may be listed thus:

 The appraisal is a systematic process involving three steps:
a) Setting work standards.
b) Assessing employee’s actual performance relative to these standards.
c) Offering feedback to the employees so that he can eliminate deficiencies and improve
performance in course of time.
 Performance appraisal is not part oriented activity.
 Performance appraisal is not job evaluation.
 Performance appraisal is not limited to ‘calling the fouls’.
 Performance appraisal may be formal and informal.
OBJECTIVES

 To reduce the grievances of the employees

 To judge the effectiveness of the other human resource functions of the organization such
as recruitment, selection, training and development.
 Provide clarity of the expectations and responsibilities of the functions to be performed
by the employees.
 To provide feedback to the employees regarding their past performance. Provide
information to assist in the other personal decisions in the organization.
 To diagnose the strengths and weaknesses of the individuals so as to identify the training
and development needs of the future.
 To help the management in exercising organizational control.
 To judge the gap between the actual and the desired performance. To review the
performance of the employees over a given period of time.

THE BENEFITS OF PERFORMANCE APPRAISAL

Employer Perspective (Administrative uses)

 Despite imperfect measurement techniques, individual difference in performance can

make a difference to company performance.
 Documentation of performance appraisal ans feedback may be required for legal defense.
 Appraisal offers a rational basis for constructing a bonus or merit system.
 Appraisal dimensions and standards can help to implement strategic goals and clarify
performance expectations.

Employee Perspective (Development purposes)

 Individual feedback helps people to rectify their mistakes and get ahead, focusing more
on their unique strengths.
 Assessment and reciganizatio of performance levels can motivate employees to improve
their performance.
WHO WILL APPRAISE?

The Appraiser may be any person who has through knowledge about the job content, contents to
be appraised, standards of contents and who observers the employees while performing a job.
The appraisal should be capable of determining what is more important and what is relatively
less important. Typical appraisers are supervisors, peers, subordinates, employees themselves
and user of service and user of service and consultants.

WHEN TO APPRAISE?

Systematic appraisal are conducted on a regular base, say for example, every six months or
annually.

PERFORANCE APPRAISAL PROCESS

1. Establishing performance standards

2. Communicating the Standards
3. Measuring Performance
4. Comparing the actual with the standards
5. Discussing the appraisal
6. Taking Corrective Action
METHODS OF PERFORMANCE APPRAISAL
The performance appraisal methods can be classified into three categories, as shown below-

Performance Appraisal Methods

Individual Evaluation Multiple Person Evaluation Other Methods

 Ranking  Group Appraisal

 Confidential report  Paired Comparison  Assessment Centre
 Essay evaluation  Forced Comparison  HRA
 Critical incidents  Field Review
 Checklists
 Graphic rating scale
 Behaviorally anchored
 Rating scales
 Forced choice method
 MBO

• Individual Evaluation Methods

Under the individual evaluation methods of merit rating, employees are evaluated one at a time
without comparing them with other employees in the organizations.

• Confidential Report: it is mostly used in government organizations. It is a

descriptive report prepared, generally at the end of every year, by the employee’s
immediate superior. The report highlights the strengths and weaknesses of the
subordinates.
 • Essay evaluation: Under this method, the rate is asked to express the strong as well as
the weak point of employee’s behaviour. This technique is normally used with a
combination of rating scale. It is a non quantitative technique.

• Behavirolly anchored rating scales (BARS): It is an absolute assessment

technique wherein critical incidents are identified and a range of performance
possibilities (from poor to good) are described for each dimensions.

• MBO: Management by Objectives is a process of agreeing upon objectives within an

organization so that management and employees agree to the objectives and understand
what they are in the organizations.

The term “management by objectives” was first popularized by Peter Drucker in his 1954 Book
“the practice of Management”

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

Multiple person evaluation methods:

• Ranking method: Under this method the evaluater is asked to rate employees from
highest to lowest on rall criterion.

• Paired comparison: A method that compels raters to compare each employee with
all other employee who are being rated in the same group.

360-degree feedback
In human resources or industrial/organizational psychology, 360-degree feedback, also known as
“multi-rater feedback,” “multisource feedback” or multisource assessment,” is feedback that
comes from all around an employee. “360” refers to the 360 degrees in a circle, with an
individual in the center of the circle. Feedback is provided by subordinates, peers, and
supervisors. It also include a self-assessment and in some cases feedback from external sources
such as customers and suppliers or other interested stakeholders. It may be contrasted with
“upward feedback” where managers are given feedback by their direct reports, or a “traditional
performance appraisal,” where the employees are most often reviewed only by their managers.
The results from 360-degree feedback are often used by the person receiving the feedback to
plan their training and development. Results are also used by some organizations in making
administrative decisions, such as pay and promotion. When this is the case, the 360 assessment is
for evaluation purposes, and is sometimes called a “360-degree review.” However, there is a
great deal of controversy as to whether 360-degree feedback should be used exclusively for
development purposes, or should be used for appraisal purposes as well. There is also
controversy regarding whether 360-degree feedback improves employee performance, and it has
even been suggested that itr may decrease shareholder value.

PROBLEMS WITH PERFORMANCE APPRAISAL

The problems inherent in performance appraisal may be listed thus:

• Judgment error: people commit mistakes while evaluating people and their
performance. Biases and judgment errors of various kinds may spoil the show. Bias here
refers to distortion of a measurement. There are of various types:

• First impression (primacy effect)- efforts by employees to obtain higher ratings by

portraying an image desired by their supervisors.

• Halo effect- Bias which occurs when the rater’s personnel opinion of a specific trait of
employee influences the rater’s overall assessment of performance.

• Horn effect- The rater’s bias is in the other direction, where one negative quality of the
employee is being rated harshly.

• Leniency- Depending on rater’s own mental make-up at the time of appraisal, raters may
be rated very strictly.

• Poor appraisal forms: The appraisal process might also be influenced by the
following factors relating to the forms that are used by raters:

• The factor scale may be quite vague and unclear.

• The rating form may ignore important aspects off job performance.

• The rating form may contain additional, irrelevant predominance dimensions.

• The forms may be too long and complex.

• Lack of rater preparedness: The raters may not be adequately trained to carry out
performance management activities. This becomes a serious limitation when the technical
competence of a rater is going to be evaluated by a rater who has limited functional
 specialization in that area. The raters may not have sufficient time to carry out appraisals
systematically and conduct thorough feedback session. Sometimes the raters may not be
competent to do the evaluations owing to a poor self-image and lack of self-confidence.
They may also get confused when the objectives of appraisal are somewhat vague and
unclear.

WHY PERFORMANCE APPRAISALS FAILS?

• Manager lacks information concerning an employee’s actual performance.

• Standards to evaluate an employee’s performance are not clear.

• Manager does not take appraisal seriously.

• Manager is not prepared for the appraisal review with the employee.

• Manager is not honest/sincere during the evaluation.

• Manager lacks appraisal skills.

• Employee does not receive ongoing performance feedback

• Insufficient resources offered to reward performance.

• There is ineffective discussion of employee development.

• Manager uses unclear/ambiguous language in the evaluation process.

WHY PERFORMANCE APPRAISLS FAILS? TOP REASONS

• Manager lacks information concerning an employee’s actual performance.

• Standards to evaluate an employee’s performance are not clear.

• Manager does not take appraisal seriously.

• Manager is not prepared for the appraisal review with the employee.

• Manager is not honest/sincere during the evaluation.

• Manager lacks appraisal skills.

• Employee does not receive ongoing performance feedback

 • Insufficient resources offered to reward performance.

• There is ineffective discussion of employee development.

• Manager uses unclear/ambiguous language in the evaluation process.

PERFORMANCE APPRAISAL SYSTEM

This document outlines the policy relating to performance appraisal system of executive cadre
employees of PUS’s. This would also cover any other location to be added in the future as part of
expansion.
ANNUAL PERFORMANCE SYSTEM IN NFL BATHINDA

In NFL the Annual Performance Appraisal System was introduced during the year 1975-76. At
that time it was felt that with the progressive build up of staff strength, such a system for all
categories of employees has to be brought into force. The first Performance Appraisal Report
was accordingly got recorded for the year ended 31st December 1975 ad since then the same is
recorded annually. The period of recording of A.R was changed from calendar year to financial
year i.e. instead of 31st December the report are now recorded upto 31st March each year.

From this year onward (2018 – 19) Performance Appraisal will be done online at
www.nfl.co.in/aparlogin/ which will open for defined period of time. This step is taken to
eliminate delay in filling performance appraisal by reporting officers.

OBLECTIVES OF THE ANNUAL PERFORMANCE APPRAISAL SYSTEM

a) To evaluate individual achievement.

b) To determine the ‘gaps’ in knowledge and skills or shortcomings noticed during the
identity evaluation.

c) To identify employees having special development potential.

PERFORMANCE APPRAISAL FORMS

Form ‘B’: E-3 (₹24,900 – ₹50,500) To E-7 (₹43,200 – ₹66,000)

From ‘C’: E-0 (₹12,600 – ₹32,500) To E-2 (₹20,600 – ₹46,500)

Form ‘D’: W-5 (₹9,500 – ₹19,500) To W-12 (₹20,600 – ₹46,500)

Form ‘E’: W-0 (₹5,900 – ₹10,150) To W-4 (₹9,300 – ₹17,950)

 FORM – B
NATIONAL FERTILIZERS LIMITED
Personnel Department : Bathinda Unit
APPRAISAL FORM FOR
FOR Dy. Manager to Dy.General Manager (E-3 to E-7)
Year Ending

NAME E. No.:
PAY SCALE
DESIGNATION (Substantive)
DATE OF JOINING
(In substantive Post) DATE OF BIRTH

Note : Please read the related instructions before filling the form

Part -I : PERFORMANCE PLANNING AND ASSESSMENT.

Part I-A : Key Performance Areas (KPAs) :
Max. Marks : 60
To be filled in by the concerned Officer at the beginning of the year By By Reporting Officer at
(At least 5-6 KPAs to be identified & each KPA should be measurable) individu the end of the year
al at the
end of
the year
Col. 1 Col. 2 Col. 3 Col. 4 Col. 5 Col. 6 Col. 7 Col. 8
KPA's Unit of Max. Target of Performance & Status of Achieveme Marks Score
Measurem Marks Corresponding Ratings Achiev- nt as obtain-
ent ment assessed ed
No. 5 4 3 2 1 0

Total:

Signature of concerned Officer Signature of Reporting Officer

Date:………......... Date:……….........
Part I-B : Mid-year review :

No. Col. 1 Col. 2 Col. 3 Col. 4

Key Performance Area Difficulties encountered / Adjustments in targets, Proposed action as agreed
justification for if any between the concerned
modification Officer & Reporting
Officer

Comments of Reporting Officer :

Signature of concerned Officer Signature of Reporting Officer

Date:………......... Date:……….........

In case KPAs and / or their weightages and / or targets are reviewed, a fresh form as given below
should be filled in and sent to P&A Deptt.

Col. 1 Col. 2 Col. 3 Col. 4

Key Performance Area Unit of Max. Target of Performance & Ratings
Measure- Marks
ment
No. 5 4 3 2 1 0
Part -II : POTENTIAL ASSESSMENT
(To be filled in by Reporting Officer)

Part II-A : COMPETENCIES -Behavioral & Professional

(All competencies have equal weightage)
Max. Marks :20
No. Competency Rating
(On a scale of 0-50)
1 Analytical ability & Decision making
2 Managerial ability
3 Professional Competence
4 Commercial sense
5 Communication skills
6 Team Building
7 Initiative & Attitude
8 Safety Awareness
Total

Rating on Competencies = Total Score x 20 =

(Prorated to 20) 400

Part II-B : VALUES

(All Values have equal weightage)
Max. Marks : 20
No. Values Rating
(On a scale of 0-50)
1 Ethical Behavior
2 Discipline
3 Mutual Respect & Trust
4 Organizational Pride
5 Transparency & Fairness
Total

Rating on Values = Total Score x 20 =

(Prorated to 20) 250
Part II-C : OTHERS
Below Satisfactory / Satisfactory / Good /
i) Knowledge & interest to work in Hindi
Very Good / Outstanding

ii) Punctuality Below Satisfactory / Satisfactory / Good /

Very Good / Outstanding
iii) Whether Property Return submitted in time Yes / No

iv) Integrity Certified/Not Certified

( Separate note to be attached if ‘Not certified’)
v) Leave
a) No. of times Medical leave availed during the year :
b) No. of days Medical leave availed during the year :
c) No. of times EL or CL availed during the year EL CL
With prior sanction
Without prior sanction

Part III : TOTAL MARKS

Section A : (To be filled in by the Reporting Officer)

Part Component Max. Marks Marks Obtained

I KPAs 60
II-A Competencies 20
II-B Values 20
Grand Total 100
Signature of Reporting Officer
with stamp and date :

Section B : (To be filled in by First Reviewing Authority)

Marks awarded after Part I Part II-A Part II-B Total

discussions with
Reporting Officer
Rationale for change
in assessment, if any

Remarks of
First Reviewing Authority
Signature of First Reviewing
Authority
with stamp and date
Section C : (To be filled in by Second Reviewing Authority)

Marks awarded after Part I Part II-A Part II-B Total

discussions with First
Reviewing Authority

Rationale for change in

assessment, if any

Remarks of Second
Reviewing Authority

Signature of Second
Reviewing Authority
with stamp and date

Section D : (To be filled in by Accepting Authority)

Part I Part II-A Part II-B Total

Marks awarded

Rationale for change in

assessment, if any

Remarks of
Accepting Authority

Signature of
Accepting Authority
with stamp and date
 FORM –C
NATIONAL FERTILIZERS LIMITED
PERONNEL DEPARTMRNT
APPRASIAL FORM FOR
( E- 0 TO E-2)
Year Ending:
NAME E.NO.
DESIGNATION PAY SCALE
DATE OF DATE OF
JOINING BIRTH
Note: Please read the related instruction before filling the form

Part-1: PERFORMANCE ASSESSEMENT

(To be filled in by Reporting Officer)
Max. Marks: 60
Parameter Weightage Rating (On a Score (A x B)
(A) scale of 0-50)
(B)
1 Job Knowledge 2
2 Achievement of Set Targets 2
3 Problem Solving 2
4 Capacity to do Inter-Related Jobs 2
5 Quality of Performance 1
6 Safety & Cost Consciousness 1
7 Planning & Efficiency in Doing Jobs 1
8 Ability to Develop Subordinates 1
9 Initiative & Attitude 1
10 Knowledge of Rule & Regulations 1
Total

Rating on Performance = Total Score x 60 =

(Prorated to 60) 700

Part- II: POTENTIAL ASSESSMENT

(To be filled in by Reporting Officer)
A: COMPETENCIES – Behavioral & Professional
(All competencies have equal weightage) Max. Marks: 20
Competency Rating
(On a scale of 0-50)
1 Team Player
2 Leadership
3 Versatility
4 Learning Attitude
5 Communication
Total
Rating on Competencies = Total Score x 20 =
(Prorated to 20) 250

Part II-B: VALUES

(All values have equal weightage)
Max. Marks: 20
Values Rating
(On a scale of 0-50)
1 Ethical Behavior
2 Discipline
3 Mutual Respect & Trust
4 Organizational Pride
5 Transparency & Faimess
Total
Rating on Values = Total Score x 20 =
(Prorated to 20) 250

Part II-C: OTHERS

i. Knowledge & Interest To Work In Hindi Below Satisfactory/ Satisfactory/ Good/

Very Good/ Outstanding
ii. Punctuality Below Satisfactory/ Satisfactory/ Good/
Very Good/ Outstanding
iii. Whether Property Return Submitted in Time Yes / No
iv. Integrity Certified / Not Certified
v. Leave
No. Of Time Medical Leave Availed During The Year:
No. Of Days Medical Leave Availed During The Year:
No. Of Times EL OR CL Availed During The Year EL CL
With Prior Sanction
Without Prior Sanction

Part III: TOTAL MARKS

Section A: To be filled in by the Reporting Officer.

Part Component Max. Marks Marks Obtained

I Performance 60
II-A Competencies 20
II-B Values 20
Grand Total 100
Signature of Reporting Officer
with stamp and date
Section B : (To be filled in by First Reviewing Authority)
Part- I Part II-A Part II-B Total
Marks awarded after discussions with
Reporting Officer

Rationale for change in marks, if any

Remarks of First Reviewing Authority

Signature of First Reviewing Authority

with stamp and date

Section C : (To be filled in by Second Reviewing Authority)

Part -I Part II-A Part II-B Total
Marks awarded after discussions with
First Reviewing Authority

Rationale for change in marks, if any :

Remarks of Second Reviewing

Authority

Signature of Second Reviewing

Authority with stamp and date

Section D : (To be filled in by Accepting Authority )

Part- I Part II-A Part II-B Total
Marks awarded

Rationale for change in marks, if any

Remarks of Accepting Authority

Signature of Accepting Authority

With stamp and date
 FORM – D
NATIONAL FERTILIZERS LIMITED
Personnel Department : Bathinda Unit
APPRAISAL FORM FOR
For [ W-5 (₹9500-19500) To W-12 (₹20600-46500) ]
Year Ending 31.03.2017

NAME E. No.:

DESIGNATION PAY SCALE

DATE OF JOINING
DATE OF BIRTH
(In Present Post)

Note : Please read the related instructions before filling the form

Part -I : PERFORMANCE ASSESSMENT.

(To be filled in by Reporting Officer)
Max. Marks : 70
Sr.No. Rating
Parameter Weightage (On a scale of 0-50) Score
(A) (B) (AxB)
1 Job Knowledge 2

2 Level of achievement of 2
Performance
3 Capacity to do inter-related jobs 2

4 Quality of Performance 2

5 Safety Consciousness 1

6 Cost Consciousness 1

7 Planning & Efficiency in doing 1

jobs
8 Initiative & Attitude 1

9 Knowledge of Rules & 1

Regulations
10 House keeping 1

Total

Rating on Performance = Total Score x 70 =

(Prorated to 70) 700
 Part -II : POTENTIAL ASSESSMENT (Competencies & Values)
(To be filled in by Reporting Officer )
Max. Marks : 30
Sr.No. Competency Rating
(On a scale of 0-
50)
1 Team Player
2 Learning Attitude
3 Communication
4 Behaviour
5 Discipline (Punctuality & Regularity)
6 Organizational Pride
Total

Rating on Competencies = Total score x 30 =

(Prorated to 30) 300

Part III : OTHERS

(To be filled in by Reporting Officer )

Below Satisfactory /
Satisfactory / Good/
i) Knowledge & interest to work in Hindi
Very Good / Outstanding

ii) Whether Property Return submitted in time Yes / No

Certified/Not Certified
( Separate note to be
iii) Integrity attached if ‘Not Certified’)

iv) Leave
a) No. of times Medical leave availed during the year :
b) No. of days Medical leave availed during the year :
c) No. of times EL or CL availed during the year EL CL
With prior sanction
Without prior sanction
 Part IV : TOTAL SCORE

Section A : To be filled in by the Reporting Officer.

Part Component Max. Marks Marks
Obtained
I Performance 70
II Potential (Competencies & Values) 30
Grand Total 100

Signature of Reporting Officer

with stamp and date

Section B : (To be filled in by First Reviewing Authority)

Part- I Part II Total

Marks awarded

Rationale for change in

marks, if any :

Remarks of First Reviewing

Authority

Signature of First
Reviewing Authority
with stamp and date

Section C : (To be filled in by Second Reviewing Authority)

Part -I Part II Total

Marks awarded

Rationale for change in

marks, if any :

Remarks of Second
Reviewing Authority

Signature of Second
Reviewing Authority
with stamp and date
Section D : ( To be filled in by Third Reviewing Authority )

Part -I Part II Total

Marks awarded

Rationale for change in

marks, if any

Remarks of third
Reviewing Authority

Signature of third
Reviewing Authority
With stamp and date

Section E : ( To be filled in by Accepting Authority )

Part -I Part II Total

Marks awarded

Rationale for change in

marks, if any

Remarks of Accepting
Authority

Signature of Accepting
Authority With stamp
and date
 FORM – E
NATIONAL FERTILIZERS LIMITED
PERONNEL DEPARTMRNT
APPRASIAL FORM FOR
Helpers, Mazdoors, peons etc.
(W- 0 TO W-4)
Year Ending:
NAME E.NO.
DESIGNATION PAY SCALE
DATE OF DATE OF
JOINING BIRTH
Note: Please read the related instruction before filling the form

SECTION – A
(To be filled in by Reporting Officer)
Part- I : PERFORMANCE ASSESSMENT
Max. Marks: 100
Parameter Weightage Rating (On a Score (A x B)
(A) scale of 0-50)
(B)
1 Performance of duties 2
2 Attendance / Punctuality 2
3 Cooperation 2
4 Amenability to Discipline 2
5 House Keeping 1
6 Safety & Cost Consciousness 1
7 Ability to Communicate 1
8 Dependability 1
9 Initiative & Attitude 1
10 Ability to Understand & Grasp 1
Instruction
Total

Rating on Performance = Total Score x 100 =

(Prorated to 100) 700

Part III: OTHERS

i. Whether Property Return Submitted in Time Yes / No
ii. Integrity Certified / Not Certified
iii. Leave
No. Of Time Medical Leave Availed During The Year:
No. Of Days Medical Leave Availed During The Year:
No. Of Times EL OR CL Availed During The Year EL CL
With Prior Sanction
Without Prior Sanction

Signature of Reporting Officer

with stamp and date
 SECTION-B
(To be filled in by First Reviewing Authority)

Marks awarded
Rationale for change in marks,
if any
Remarks of third Reviewing /
Accepting Authority

Signature of third Reviewing /

Accepting Authority with
stamp and date

SECTION-C
( To be filled in by Second Reviewing Authority)

Marks awarded
Rationale for change in marks,
if any
Remarks of third Reviewing /
Accepting Authority

Signature of third Reviewing /

Accepting Authority with
stamp and date

SECTION D
( To be filled in by Third Reviewing /Accepting Authority )

Marks awarded
Rationale for change in marks,
if any
Remarks of third Reviewing /
Accepting Authority

Signature of third Reviewing /

Accepting Authority with
stamp and date
CHAPTER 3
SCOPE FOR
STUDY
SCOPE OF THE STUDY
The development of any organization depends on the employees of the organization .The study is
conducted to know the importance as well as need of “Performance Appraisal” in the
organization for a successive run.
 CHAPTER 4
OBJECTIVES OF
RESEARCH
OBJECTIVES OF RESEARCH

i. To study the need and importance of “Performance Appraisal”.

ii. To study the different methods used for performance appraisal.

iii. To study the level of clarity of Performance Appraisal among the employees.
 CHAPTER 5
RESEARCH
METHODOLOGY
RESEARCH METHODOLOGY

Sample Size
The total sample size is 50 Employees.

Date Collection And Statistical Tools

The sources of data for the purpose of study were

1. Primary Data and

2. Secondary Data.

Primary Data was collected through:

 Structured Questionnaire, which was mainly close -ended questionnaire but also include
1 open ended Question in the form of conditional question.
 Personal Interview
 Observation

Whereas, Secondary Data was collected through:

 Records maintained by Establishment Department.

 Internet

Method Used For Research

Descriptive technique and Percentage method is used for the analysis of data and bar graphs are
used to represent the data.

Sampling Technique

Combination of Judgement and Convenience Sampling.

Statistical Tool

Percentage method is used for the analysis of data and pie charts are used to present that data.

Percentage Method Formula:

Percentage of Respondents = No. of Respondents x 100

Total no. of Respondents
LIMITATIONS OF THE STUDY:

Although I have done sincere efforts to collect authentic and relevant information, the study may
have the following limitations:

• It was very difficult for me to get fulfill the forms because of respondent’s busy schedule
and not providing me sufficient time to fill the form seriously.

• Scope of study is limited to NFL only because of limited time and money. So results of
study may not be generalized.

• Consumer behavior is dynamic in nature and thus over the time, finding of today may
become invalid tomorrow.

• Some of the respondents give no answer to the questions which may affect the analysis.

• The personal biases of the respondents might have influence their response.
 CHAPTER 6
DATA ANALYSIS AND
INTERPRETATION
DATA ANALYSIS AND INTERPRETATION

1) When Performance Appraisal is made in the organization?

Factor No. of Respondent Percentage ( in %)

Monthly 0 0
Quarterly 0 0
Yearly 50 100
Other 0 0

Monthly
Quarterly
Yearly
Other

Interpretation : All respondent state that performance appraisal in their organization NFL filled
after every 1 year interval or in other words 100% of respondent select option “C” which is “
yearly”
2) On what Basis Performance Appraisal is made?

Factor No. of Respondent Percentage ( in %)

Total output 9 18
Behavioral efficiency 7 14
Work knowledge & job
11 22
skills
All of these 23 46

18%

46%
14% Total output

Behavioral efficiency

Work knowledge &

job skills
All of these

22%

Interpretation: From 50 respondent 46% of respondents select option “d” which is “All of
these”, 22% of respondents select option “c” “Work Knowledge And Job Skills”, 18% of
respondents select option “a” “Total Output” and 14% of respondent select option “b”
“Behavioral Efficiency”.
3) Is performance appraisal given adequate importance in your organization?

Factor No. of Respondent Percentage ( in %)

Strongly Agree 11 22
Agree 39 78
Strongly Disagree 0 0
Disagree 0 0

0%

0%
22%

Strongly Agree

Agree

Strongly
Disagree
78% Disagree

Interpretation : From the above pie chart it conclude that from 50 respondent 78% of
respondents select option “b” which is “Agree” and remaining 22% of respondent select option
“a” “Strongly Agree”.
4) In your opinion Performance Appraisal is?

Factor No. of Respondent Percentage ( in %)

Evaluation of Employees 25 50
Promotion of Employees 17 34
Job Satisfaction of
Employees 5 10
Motivation 3 6

Meaning of PA

6%

10%
50% Evaluation of
Employees

Promotion of
34%
Employees

Job Satisfaction of
Employees

Motivation

Interpretation: Above chart shows that from 50 respondents 50% of respondent select option
“a” which is “Evaluation of Employees”, 34% of respondents select option “b” “Promotion of
Employees”, 10% of respondents select option “c” “Job Satisfaction of Employees and finally
the remaining 6% select option “d” “Motivation”.
5) Is performance appraisal being used as tool for development of subordinates?

Factor No. of Respondent Percentage ( in %)

Strongly Agree 10 20
Agree 34 68
Strongly Disagree 0 0
Disagree 6 12

Tool for Development

20%
0% 12%

Strongly Agree

Agree

Strongly Disagree

Disagree

68%

Interpretation : Above chart shows that from 50 respondents 68% of respondent select option
“b which is “Agree”, 20% of respondents select option “a” “Strongly Agree”, 12% of
respondents select option “d” “Disagree” and 0% of respondent select option “c” “Strongly
Disagree”.
6) Are you satisfied with the growth opportunity in the company?

Factor No. of Respondent Percentage ( in %)

Completely satisfied 9 18
Satisfied 30 60
Neither satisfied nor
7 14
dissatisfied
Dissatisfied 4 8
Strongly Dissatisfied 0 0

Growth Opportunity
8% 0% 18%

Completely satisfied
14%

Satisfied

Neither satisfied nor

dissatisfied
Dissatisfied

Strongly Dissatisfied

60%

Interpretation: According to above chart from 50 respondents 60% of respondent select option
“b which is “Satisfied”, 18% of respondents select option “a” “Completely Satisfied”, 14% of
respondents select option “c” “Neither satisfied nor dissatisfied” and 8% of respondent select
option “d” “Dissatisfied” and 0% of respondent select option “e” “Strongly Dissatisfied”.
7) To what extent your superior provide bases for improving work relationship and team
effectiveness?

Factor No. of Respondent Percentage ( in %)

They provide full possible
9 18
support
Up to some extent 31 62
No support is provided 0 0
Can’t say 10 20

Help from Superior

20% 18%

0% They provide full

possible support
Up to some extent

No support is provided

Can’t say

62%

Interpretation: According to above chart from 50 respondents 62% of respondent select option “b
which is “Up to some extent”, 20% of respondents select option “d” “Can’t say”, 18% of respondents
select option “a” “They provided full possible support” and 0% of respondent select option “c” “No
support is provided”.
8) Is your superior frank enough to tell you what he thinks about your performance?

Factor No. of Respondent Percentage ( in %)

Yes 13 26
Sometime 24 48
No 4 8
Can’t say 9 18

Feedback from superior

18%
26%

8%

Yes
Sometime
No
Can’t say

48%

Interpretation: According to above chart from 50 respondents 48% of respondent select option
“b which is “Sometime”, 26% of respondents select option “a” “Yes”, 18% of respondents select
option “d” “Can’t say” and 8% of respondent select option “c” “No”.
9) Do you feel that it is responsibility of your superior to look after your development?

Factor No. of Respondent Percentage ( in %)

Yes 5 10
Up to some extent 33 66
No 8 16
Can’t say 4 8

Superior Responsibitity

8% 10%

16%

Yes
Up to some extent
No
Can’t say

66%

Interpretation: According to above chart from 50 respondents 66% of respondent select option
“b which is “Up to some extent”, 16% of respondents select option “c” “No”, 10% of
respondents select option “a” “Yes” and 4% of respondent select option “d” “Can’t say”.
10) Do you think Performance Appraisal give constructive criticism in a friendly &
positive manner?

Factor No. of Respondent Percentage ( in %)

Yes 50 100
No 0 0

Nature of PA

Yes

No

100%

Interpretation: According to above pie chart from 50 respondent all respondent (100% of
respondent) select option “a” which is “Yes”, no one select option “b” “No”.
11) What methods are being used for performance appraisal?

Factor No. of Respondent Percentage ( in %)

Essay method 16 32
Ranking method 18 36
Critical incident
0 0
method
Any other 13 26

Method

26%
32%

Essay method

Ranking method
0%
Critical incident
method
Any other

36%

Interpretation: According to above chart from 50 respondents 36% of respondent select option
“b which is “Ranking method”, 32% of respondents select option “a” “Essay method”, 26% of
respondents select option “d” “Any other” and 0% of respondent select option “c” “Critical
incident method”.
12) Does any Change arise after appraising the performance of employees?
a) Yes b) No
If yes, how is it?
a) Positive b) Negative c) Both

Factor No. of Respondent Percentage ( in %)

Yes 44 88
No 6 12

12%
Need of Change

Yes

No

88%

Interpretation: According to above pie chart 88% of respondent select option “a” which is
“Yes” and 12% of respondent select option “b” “No”.
 If yes, how is it?
b) Positive b) Negative c) Both

Factor No. of Respondent Percentage ( in %)

Positive 26 59
Negative 6 14
Both 12 27

Change

27%

Positive
Negative

14% 59%Both

Interpretation: According to above pie chart From 44 respondent who select option ”a” “Yes”
inn previous question out of them 59% of respondent select option “a” “Positive”, 27% of
respondent select option “c” “both” and remaining 14% of respondent select option “b”
“Negative”.
13) How do you rate the transparency of the performance appraisal system of the
company?

Factor No. of Respondent Percentage ( in %)

Outstanding 6 12
Good 21 42
Satisfactory 21 42
Poor 2 4

Transparency
4% 12%

42%

Outstanding

Satisfactory
42%
Good

Poor

Interpretation: According to above chart from 50 respondents 42% of respondent select option
“b” which is “Good”, 42% of respondents select option “c” “Satisfactory”, 12% of respondents
select option “a” “Outstanding” and 4% of respondent select option “d” “Poor”.
14) Do you think there is need of change in current performance appraisal system? If Yes,
then please specify your reason.

Factor No. of Respondent Percentage ( in %)

Yes 8 16
No 42 84

Need of Change
16%

Yes
No

84%

Interpretation: According to above pie chart 84% of respondent select option “b” which is “No”
and 16% of respondent select option “a” “Yes”.
CHAPTER 7
FINDINGS
FINDINGS

1. Every employee is aware about that performance appraisal filled once every year by reporting
officer.
2. But from 2nd question it seem like employees below code E3 only know about that that
performance appraisal filled once very year but how or on what basis they don’t know about that
because there is no one answer, most of the respondents select option all of the above in respect
of on what basis performance appraisal is made but on the other hand remaining respondents
select other options as well as. Which clearly state that employees have less knowledge or
awareness regarding how performance appraisal work in their organization.
3. The finding of Q3 is positive, almost every respondent state that “Yes, in their organization (NFL,
Bathinda) performance appraisal given adequate importance”. But there are also few respondents
on the other hand those are not agree with this statement.
4. For half of the respondents “performance appraisal is evaluation of employees” in their opinion
and after that 34% of respondents opinion are “promotion of employees is performance appraisal”
and opinion of 10% of respondents are “Job satisfaction of employees is performance appraisal”
and remaining 6% of respondents opinion are “motivation is performance appraisal”, this is not
what performance appraisal is in their organization but this is what they want performance
appraisal to be.
5. More than half of the respondents believe that performance appraisal is tool for development of
subordinates and it is being used in their organization for same purpose.
6. Almost every employees are satisfied with the growth opportunity in their company, they
completely satisfied with current growth opportunity but still 22% of respondents are either not
satisfied or neither satisfied nor dissatisfied.
7. More than half of the respondents state that up to some extent there superior helps and provide
bases for improving work relationship and team effectiveness and 20% of the respondents state
they can’t say and remaining 18% of the respondents state their superiors provide full possible
support for improving work relationship and team effectiveness.
8. Its turnout that in pervious question 80% of the respondents was in favor that their superiors helps
in improving work relationship and team effectiveness but in this question which meant to cross
check the respondents 65 of the respondents change their answer into against. which show that
either they are hiding info for some reasons it may be fear or positive image or they are confuse.
9. More than half of respondents feels that superior should take some responsibility to look after
their subordinates development at least up to some extent and still there are some respondents
(24% of respondents) those are either choose to say nothing by selecting can’t say or not think its
superior responsibility.
10. All respondents believe that performance appraisal give constructive criticism in a friendly
& positive manner and its important too.
11. The finding of this question (Q11) is that awareness regarding performance appraisal is
very poor in National fertilizers Limited, Bathinda. Everyone may be aware about that
performance appraisal is filled in their organization and once every year but what
method, basis, KPA and etc they don’t know anything about that even some of the
respondents fails to answer this question that “what method are being used for
 performance appraisal?” which clearly shows that creating awareness regarding
performance appraisal is required in this organization.
12. Almost all respondents (88% of respondents) state that Yes, Change arise after appraising
the performance of employees but on the other hand 12% of respondents state the no
Change arise after appraising the performance of employees.
From those 44 respondents (88% of respondents) 59% of respondents state that change
from performance appraisal is both positive as well as negative and 27% of the
respondents state that that change from performance appraisal is positive and remaining
14% of respondents state that change from performance appraisal is negative.
13. 42% of respondents state that transparency of the performance appraisal system of the
company is Good and equally 42% of respondents state that transparency of the
performance appraisal system of the company is satisfactory and 12% of respondents
state that its outstanding.
14. 84% of respondents say there is no need of change in current performance appraisal
system and on the other hand 16% of respondents state that there is need of change in
performance appraisal and they mentioned that what they need to add or change such as
use of 360 Degree Feedback, 360 degree feedback suggested by half of the respondents
who state they need change in performance appraisal and some suggested KPA must be
provided to each and every employee at the start of the year and appraised should be
based on the same. And the basis of analysis of performance must be objective not
subjective. On the other hand few respondent was there who want change but can’t tell
what exactly they want.
 CHAPTER 8
SUGGESTION AND
RECOMMENDATION
SUGGESTIONS AND RECOMENDATION
• KPA must be provided to each and every employee at the start of the year and appraised should
be based on the same.

• The basis of analysis of performance must be objective not subjective.

• Create awareness or share information regarding performance appraisal with each and every
employees..

• It should be noted that the appraisal form for each job position should be different as each job
has different knowledge and skill requirements.

• Every concept of performance appraisal should be marketed throughout the organization.

Unless this is done, people would not accept it, be it how important to the organization

• Use 360 degree feedback method as most of employees want that, it will satisfy them. If there
are any reasons behind not using 360 degree feedback then let employees know them so no
misunderstanding or conflict take place in the organization.

• And lastly and very important discuss with your employees not only regarding performance
appraisal but on other topics too, ask them where improvement are required in system and how it
can improve, employees have many ideas to improve the organization just give them platform to
share their ideas.
CONCLUSION
NATIONAL FERTILIZERS LIMITED being one of the reputed fertilizers manufacturing
companies in India but National Fertilizers Limited, Bathinda should work on their performance
appraisal system, while studying on performance appraisal with special reference of National
Fertilizers Limited, Bathinda while filling questionnaire, interacting with their employees one
point is clear that they have clear idea of their job recruitment and job responsibility but they
have no clear idea of performance appraisal they don’t know on what basis performance
appraisal made and what KPA are fixed or what method used to fill performance appraisal.

Superiors should interact with their subordinate discuss about performance appraisal and aware
them and also help them in their development and look after them and also tell and give feedback
to subordinates about their performance regularly so they can work on them.
CHAPTER 9
APPENDICES
 Questionnaire
On
Performance Appraisal
Personal Information
Name ……………………………………… Designation ……………………
Age…………………………. Sex………………………..……

Q1. When Performance Appraisal is made in the organization?

a) Monthly c) Yearly
b) Quarterly d) Other

Q2. On what Basis Performance Appraisal is made?

a) Total output c) Work Knowledge & Job Skills
b) Behavioral Efficiency d) All of these

Q3. Is performance appraisal given adequate importance in your organization?

a) Strongly agree c) Strongly disagree
b) Agree d) Disagree

Q4. In your opinion Performance Appraisal is?

a) Evaluation of Employees c) Job Satisfaction of Employees

b) Promotion of Employees d) Motivation

Q5. Is performance appraisal being used as tool for development of subordinates?

a) Strongly agree c) Strongly disagree
b) Agree d) Disagree

Q6. Are you satisfied with the growth opportunity in the company?

a) Completely satisfied d) Neither satisfied nor dissatisfied

b) Satisfied e) Dissatisfied
c) Strongly dissatisfied

Q7. To what extent your superior provide bases for improving work relationship and team
effectiveness?

a) They provide full possible support

b) Up to some extent
c) No support is provided
d) Can’t say
Q8. Is your superior frank enough to tell you what he thinks about your performance?

a) Yes c) No
b) Sometime d) Can’t say

Q9. Do you feel that it is responsibility of your superior to look after your development?

a) Yes c) No
b) Up to some extent d) Can’t say

Q10. Do you think Performance Appraisal give constructive criticism in a friendly & positive
manner?
a) Yes b) No

Q11. What methods are being used for performance appraisal?

a) Essay method
b) Ranking method
c) Critical incident method
d) Any other, kindly specify _________________________

Q12. Does any Change arise after appraising the performance of employees?
b) Yes b) No
If yes, how is it?
c) Positive b) Negative c) Both

Q13. How do you rate the transparency of the performance appraisal system of the company?
a) Outstanding c) Satisfactory
b) Good d) Poor

Q14. Do you think there is need of change in current performance appraisal system?

a) Yes b) No

If Yes (in above Q), then please specify your reason.

Ans.
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
 CHAPTER 10
BIBLIOGRAPHY
BIBILOGRAPHY
c) Records
Provided by National Fertilizers Limited
d) Web Pages:
www.natinalfertilzers.com
www.yourarticlelibary.com/performance-appraisal-methods-traditional-and-modern-
methods

e) Self Knowledge