A STUDY ON “PERFORMANCE APPRAISAL”

With Reference To
BHARAT HEAVY ELECTRICALS LIMITED (HEAVY PLATES & VESSLES
PLANT).VISAKHAPATNAM

A Project Report submitted in partial fulfillment of the requirement for

the Award of the Degree of

BACHELOR IN BUSINESS ADMINISTRATION

SUBMITTED BY

AMAN JAIN
REGD.NO:2015-1609193

Under the esteemed guidance of

MR.RAJESH VERMULA
 GVP College for Degree and PG Courses (Autonomous)
Affiliated to Andhra University
(Accredited by NAAC with B++)
GAYATRI Valley, RUSHIKONDA, Campus
Visakhapatnam-530045
2015-18

BHARAT HEAVY ELECTRICALS LIMITED

Visakhapatnam

CERTIFICATE

This is to certify that the Project Report titled “Role of Motivating”

submitted in partial fulfillment of the award of BBA, “SUN DEGREE & PG
COLLEGE” affiliated to Ambedkar University Srikakulam was carried out by
P. Sai Priya under my guidance and supervision. He has been sincere,
dedicated and his conduct throughout the study has been excellent.

SHRI G.CHANDRA SEKHAR SHRI G. KURU MURTHY

Sr. Manager (HR) Dy. General Manager (HRDC)
BHARAT HEAVY ELECTRICALS LTD BHARAT HEAVY ELECTRICALS LTD
VISAKHAPATNAM VISAKHAPATNAM
GAYATRI VIDYA PARISHAD FOR DEGREE AND PG COURSES
VISAKHAPATNAM

CERTIFICATE

This is to certify that the Project Report titled PERFORMANCE

APPRAISAL submitted in partial fulfillment of the award of B.B.A
Degree of ANDHRA UNIVERSITY VISKHAPATNAM was carried out by AMAN JAIN
under my guidance and supervision. He has been sincere, dedicated and his
conduct throughout the study has been excellent.

HEAD OF THE DEPARTMENT PROJECT GUIDE

Mr.Dr.K Shyamala Rao Mr.RAJESH

HOD ASST. PROFESSOR
Dept. Of B.B.A Dept. OF B.B.A
G.V.P G.V.P
 1. ACKNOWLEDGEMENT

In the completion of the project and preparation of this project report I am greatly
indebted to the following people without whose help and cooperation it would have not
been possible for me to do the same.
I would like to forward my sincere thanks and gratitude to thankful to Prof. K.
SHAYAMALA RAO , HOD , Department of B.B.A, of GAYATRI VIDYA
PARISHAD FOR DEGREE AND PG COURSES, RUSHIKONDA, VISAKHAPATNAM
My deep gratitude also goes to MR.RAJESH, faculty member, who has patiently
guided me to the successful completion of project work.
I would like to express my sincere gratitude to Mr. T.A.RAMA RAO, DEPUTY
MANAGER (HRD & TI), MR. G. CHANDRASEKHAR, Deputy Manager, HR
department, BHEL, for their valuable support and guidance during the entire course of
the project work.
I would like to express my sincere thanks to Mr. Y. Vijaya Bhasker,
HR/P&A, BHEL for all his help and guidance.

I would also like to extend my gratitude to my parents and friends without whose
help and advice this project would not have been possible.

AMAN JAIN
2015-1609193
 DECLARATION

I hereby AMAN JAIN declare that the project report titled “PERFORMANCE
APPRAISAL” with reference to BHARAT HEAVY ELECTRICALS LIMITED
submitted by me to BACHELOR OF BUSSINESS ADMINISTRATION is genuine and
bonafide work done by me and is not submitted to any other university or published
anytime before. a record of original work done by me during the period of 2 nd
May 2017 to 2nd June 2017, under the guidance and supervision of
Asst.Professor Mr. RAJESH

(AMAN JAIN)
2015-1609193
Date:
Station: Visakhapatnam
 CERTIFICATE

This is to certify that MR.AMAN JAIN student of final year B.B.A bearing Regd.

no;2015-1609193 had submitted the project report entitled “A STUDY ON

PERFORMANCE APPRAISAL” with reference to BHARAT HEAVY

ELECTRICALS LIMITED, Visakhapatnam, in partial fulfillment of the award of

degree of BACHELOR OF BUSINESS ADMINISTRATION

SIGNATURE
FACULTY MEMBER

Station:

Date:
 TABLE OF CONTENTS

CHAPTER 1: INTRODUCTION
 OBJECTIVES OF THE STUDY
 NEED FOR THE STUDY
 METHODOLOGY
 INDUSTRY PROFILE
 LIMITATIONS

CHAPTER 2: COMPANY PROFILE

CHAPTER 3: THEORITICAL FRAME WORK

CHAPTER 4: ANALYSIS OF THE WORK

 CONTRUBITION
 ANALYSIS
 LEARNI NGS

CHAPTER 5: SUMMARY
 FINDINGS
 SUGGESTIONS
 CONCLUSION

BIBILOGRAPHY
ANNEXURE
 CHAPTER 1

INTRODUCTION

 INTRODUCTION OF THE STUDY

 OBJECTIVES OF THE STUDY
 NEED FOR THE STUDY
 METHODOLOGY
 INDUSTRY PROFILE
 LIMITATIONS

INTRODUCTION OF THE STUDY

Appraising the Performance of individuals, groups and organizations is a

common practice of all societies. While in some instances these appraisal process are
structured and formally sanctioned, in other instances they are informal and integral part
of the daily activities. Thus they teach us to evaluate our own actions from time to time.
In social interactions, performance is conducted in a systematic and planned manner to
achieve popularity in recent years.
Performance Appraisal is essential to understand and improve the
employee’s Performance through HRD. In fact, performance appraisal is the basis of
HRD.
It was viewed that performance appraisal was useful to decide upon
employee promotion/transfer, salary determination and the like. But the recent
developments in Human Resources Management indicate that performance appraisal is
the basis for employee development. Performance Appraisal indicates the level of
desired performance level, level of actual performance and the gap between these two.
This gap should be bridged through Human Resources development techniques like
training and executive development.
OBJECTIVES OF THE STUDY

The present study on “Performance Appraisal at BHEL” has been conducted

with the following objectives:
● To know how to develop the employee and make him suitable to the job

● To study the awareness created in the employees by the organization in view of

technological advancement

● Improving the efficiency of man power and utilization of reservations to

optimum level due to reduction in manpower

● To study weather the employer and employee relation really effects the company
growth

● Partly humanization to enable the employee to enjoy a good quality of work life

NEED FOR THE STUDY

People need competencies to perform tasks. The nature of the job is constantly
changing due to changes in environment, technology, organizational goals and strategies.

It has become a challenging task for organizations in public, private, joint and
cooperative sectors to cope up with growing competition due to on slot of globalization.
In order to survive in this competitive era, the organizations have to focus on improving
its performance.

Performance Appraisal is very important, essential for the betterment of the

company. The company is contributing functioning of the Performance Appraisal system
of BHEL to find out the satisfaction and importance level of the employees towards
training and development at BHEL.

METHODOLOGY OF THE STUDY

Methodology is a systematic procedure of collecting information in order to

analyze and verify a phenomenon. The collection of information will be done by two
principle sources viz., Primary data and Secondary data.

Primary Data:
Primary data is the data that is generated by the Researcher for the specific
purpose of Research situation at hand. It is the first hand information that a Researcher
gets from various sources like respondents, analysts, employees and research
experiments.

In this study certain information will be gathered through communicate with

concerned officers, staff and clients of BHEL either individually or collectively.

Secondary Data:

Secondary data is already published data collected for some purposes other than
the one confronting the researcher at a given point of time. The secondary data can be
gathered from various sources like books, journals, research agencies etc.

For this project the secondary information is collected from the various sources
like “Annual reports” & “company websites” and so on.

INDUSTRY PROFILE

Experienced in design of columns, multi layer vessels, heat exchangers, liquid

oxygen & nitrogen unit, evaporation plants, digesters, mounded vessels, sulphur
recovery unit, gas dehydration, desalters, heater treaters, crude stabilizations unit, storage
vessels etc., backed by Technology absorption & adoption from the world leaders.

1. Skoda Exssport , Czechoslovakia.

2. L’Air liquid, France.

3. KAMYR - AB Sweden

4. ARAMCO

5. NRDC, India

6. Hahn & Clay, USA.ETC.,

Boilers

BHPV absorbed technology from BHEL for industrial boilers Design, Engineering,
Manufacture, Erection, Testing & Commissioning of Boilers with horizontal transfer of
technical know – how from BHEL. Capacities up to 200 TPH in low , medium and high
pressure ranges with superheat up to 540 degree centigrade equipped with all modern
features like.

1. FSSS (Furnace Safeguard Supervisory System)

2. Oil storage, pumping & heating units.
3. Fire fighting system.

Erection & Commissioning of STGs.

Dynamic simulation of power plant.

Fired heaters

Technology absorption from ABB Lummus heat transfer (LHT) for design and
manufacture, Erection & Commissioning of Fired Heaters in the following type:

1. Crude and Vacuum Heaters

2. Coker Heaters

3. Hot Oil Heaters

4. Charge Heaters

5. Recycle Heaters

Market profile

This covers the product range of customer profile and competitor’s profile.

Customer profile
BHPV’S clientele includes-

 Public
 Private
 Co-operative

Sector organizations in almost all the core sector of economy such as all the
 32 fertilizer plants
  22petrolium refineries
 12 petro chemical complexes.
 All major integrated steel plants in India
 Oil and gas
 Nuclear and defense etc.
Other major customers are from paper, power, non ferrous, chemicals, pharmaceuticals,
synthetic fibers, coal, dairy, space sectors.
 IOCL - all units
 FACT - Cochin
 GAIL - AURAIYA
 IFFCO – all units
 RCF – all units
 DCI – Visakhapatnam

Competitor profile

Competitors in Process Plants

 L&T
 GR Engg
 Lioyds steel
 BHEL
 ISGEC
 Godrej & Boyce

Competitors in Cryogenic Plants

 ICCP
 Sanghai Oxygen, China
 L&T
 Linde process systems, Germany
 BOC, UK
 Air products,UK
 Kobe, Japan
 Hitachi
 HOPM,China

Competitors in Boilers / Combustion Systems

 ISGEC
 Babcock
 Ignifluid boilers
REASONS FOR SICKNESS OR SUB-OPTIMAL PERFORMANCE

1. Operational Issues
Order Booking: The Company was performing with marginal profits during last ten
years due to globalization; the company has been facing problems in normal business
operations for last three years due to low order bookings which resulted into huge
losses. However present order book position is improving.

2. Interest Burden on VRS Loans

The Company has been implementing VRS by taking loans from Government of India
and 2255 employees were relieved. The company is incurring huge interest burden on
these loans, which is severely affecting profitability of company.

3. Financial crisis
The Company has been facing financial crisis, during the last few years. The bank
accounts with consortium of banks have become Naps. In spite of improvement in the
present order book, the company couldn’t, execute these orders because of liquidity
crisis. The bankers are not allowing any kind of operations, which include non-fund
based facilities like opening of letter of Credits issues of Bank Guarantees this further
worsening the situation of the Company. The company is also not in a position to quote
for new orders in certain cases due to non-issuance of “Solvency Certificate” which is
perquisite in pre-bidding stage.

4. Technology & Market Issues:

Most of the present plant & machinery & infrastructure utilized by the company is
of 40 years old and have been fully depreciated. Therefore, it needs up-gradation to cope
up with present technological developments. At present the internal lead time is high
when compared to competitors and needs computerization by going in for LAN with
Centralized control system to reduce the internal lead time. Similarly in the areas of
engineering the lead time required for design and drawings is to be reduce which
requires implementation of sophisticated process design software.
5. Adverse Market Condition:
The survival of any company primarily depends on its order book. However, due to
Liberalization and globalization the Company faced stiff competition from multinational
companies. Lump Sum turnkey (LSTK) Concept adversely affected the companies’ order
book. For quoting for LSTK projects, the company is not eligible despite the capabilities
to execute the project in conventional manner
Remedial Action Taken, If Any

6. Manpower Rationalization / Implementation of VRS:

In order to reduce the manpower cost, the company has been implementing
Voluntary Retirement scheme and 2255 employees have left the company on VSRS.
The manpower cost has been substantially reduced from RS 61 Crores earlier to RS 30
Crores per annum now. How ever, it is still high for the present level of production,
which is very low. More over, BHPV is also incurring huge interest burden on loans on
account of VRS given earlier, which is severely affecting the profitability of company.

7. Roll back of Retirement age:

In the process of manpower restructuring, the company had reduced the retirement
age from 60 to 58 years during the year 2001 in order to reduce the manpower cost and
to improve operating efficiency.

8. Product Diversification:
The company has undertaken several EPC contracts on EPC/LSTK basis at various
locations in India and abroad. The Company R&D Department has developed
technology for manufacture of compact Heat Exchange and On Board Oxygen
Generating System (OBOGS) for the light Combat Aircraft (LCA) which is being
developed indigenously by Aeronautical Development Agency. Development of this
technology for the above products indigenously by BHPV has made the country self
sufficient and also saving in foreign exchange. Therefore, the Company is also
expecting export market for the above products. The in-house R&D is capable of
developing new techniques and methods in Welding of special materials.
9. Improvement in Marketing:
The steps taken by the management in improving marketing are not sufficient
to meet the present requirements. Therefore, the Regional Offices are to be strengthened
to improve the marketing activities and for close monitoring with the Customers for
their requirements.

10. Attempts at Optimization of Resources:

As the order book is low, the capacity utilization is less when compared to the
installed capacity; attempts are made to book more orders for effective utilization.
Attempts are made to reduce the manpower costs by giving VRS. Attempts are made to
reduce consumption of power, water, etc., in order to reduce overhead costs. Attempts
are made to develop Compact Heat Exchangers for LCA, by utilizing existing R&D
facilities.

11. Revival:
The Company is helping in building many projects of national importance
in the core sector. Its revival and continued existence will be helpful in controlling the
cost of the end users projects on the one hand and ensure the welfare of those directly
involved in the company’s stake on the other.

STRATEGIC REASONS FOR REVIVAL OF BHPV LTD

As mentioned above, revival of the company is essential. The strategic reason of the
same are elaborated below.

The present manpower of company is 1001 (as on 1 st may 2017) and

approximately 3500 indirect employees are depending on the company, which includes
ancillary units, contract labors, casuals/ temporary, vendor labor etc. Therefore,
approximately 5000 families are dependent on company.

BHPV has developed technology for compact heat exchangers for use in light
combat Aircraft (LCA), which is being developed indigenously. BHPV Ltd is also
working on the technologies. Particularly in defense and space sectors etc. Therefore its
continued existence is of vital importance to the country.
 As mentioned above the product manufactured by the company is in line with
the products manufactured by L & T and multinationals like ABB, Alstom, etc, and
BHPV Ltd is giving stiff competition to these companies. But for BHPV these
companies will quote prices as they like and squeeze the public sector .

The company has contributed Rs 350 Crores (approx) to the national

exchequer. if the debt (Govt. + Financial Institution ) burden is removed from its
shoulder and some cash infused, the operation of BHPV Ltd will generate handsome
margins and there is a scope for incremental value addition to service the capital with
good returns besides continued contribution to national exchequer.

TAKE-OVER OF BHPV BY BHEL AS A PART OF REVIVAL

BHPV was taken over by the company BHEL in May 2008. The salient
features of take-over are as below:

Cash Infusion:
An amount of Rs 182 Crores is infused by BHEL for clearance of banker’s
dues and Rs 34 Crores infused for clearance of certain pressing liabilities.
BHEL is to invest Rs.34 Crores towards Equity and Rs.275 crores towards
capital expenditure.
It is projected that the company will perform well from 2009 onwards under
the guidance of B.H.E.L. The company is expecting good results by achieving Rs 1000
crores turnover in coming 5 years as BHEL proposes necessary infusion of funds
towards CAPEX and working capital besides utilization of existing resources.

Approved Rehabilitation Scheme:

As Per the Government of India, Ministry Of Heavy industries &public
Enterprises, Department of Heavy industries, letter F.NO 1(11)/ 2004- PE (IV) Dated
07.05.2008)
 1. GOI Will Waive and Write Off loans and interest amounting to Rs.415.16 Crores.
2. GOI to provide guarantee amounting to RS.250 Crores to enable BHPV to raise
bonds from the domestic market subject to the conditions as intimated vide this
office letter of even no. dated 29.04.2008.
3. The entire paid up capital of BHPV to the tune of RS.33.79 Crores would be
transferred to BHEL at a national value of Re.1/-
4. BHEL will takeover both the assets and liabilities (including contingent
liabilities) of BHPV has a going concern.
5. The take over will entail the following concessions from the Government Of
Andhra Pradesh:
a) Transfer of title of land measuring 386.73 acres in position of BHPV has gift
along with waiver of registration and stamp duty.
b) Waiver of sales tax arrears amounting to Rs.42.16 Crores
c) Waiver of nala tax of RS 43 lakh and
d) Waiver of dues towards water tax property tax, and vacant land tax of RS
3.96 Crores
6. The consortium of Bankers has agreed for one –Time –Settlement BHEL may
take timely advantage of the offer.
7. BHEL will infuse at least RS 34 Crores as additional Equity capital and adequate
funds for up-gradation of manufacturing facilities, capex and working capital.
8. BHEL will take over BHPV with all its employees

LIMITATIONS OF THE STUDY

1) Since the sample size is 40, it is difficult to have accurate conclusions.

2) Most of the employees are not ready to share their opinion firmly.

3) Some of the employees are busy in their work and were not in position to respond

to concerned topics exactly.

4) Due to lack of time, unable to gather huge information.

 CHAPTER 2

COMPANY PROFILE

Incorporation of the Company : 1966

Primary Objective : To manufacture custom built Capital

Equipment for the Process industries such
as Fertilizers, petrochemicals, Petroleum
refineries, chemicals etc

Technical Collaboration provided by : M/s SKODA EXPORT,

Czechoslovakia.

Commencement of Construction : 1968

Completion of Construction : 1971

Commencement of Production : 1971

Initial Project Cost : Rs. 17.5 crores

Initial Product Mix : Heat Exchangers, columns, pressure

Vessels, Technological Structures, piping
etc

Installed Capacity : 23, 210 M.T.

Turnover for the year 2016-17 : Rs. 108 Crores

PRODUCTION FACILITIES

Factory Area : 197 Acres

Total Covered Area : 90,000 sq. Meters

Covered area of Production Shops : 56,000 sq. Meters

Power Requirement : 3,000 KW from APSEB

IMPORTANT MACHINERY
 The factory is provided with comprehensive and modern manufactur ing and
testing facilities and suitable material handling equipment.
 The maximum crane lifting capacity is 120 tones, but loads up to 250 tones can be
lifted with improvised.
 Maximum Rolling capacity is 60mm in cold condition and 170mm in hot
condition.

OTHER CRITICAL EQUIPMENT AVAILABLE WITH BHPV ARE

 Deep Drawing Hydraulic Press of 1600T capacity.

A number of Welding Rotators of capacity up to 250 Tones.
 Tube Fining Machine.
 Different types of Non-destruction Testing Equipment.
 Well equipped Physical and Chemical Laboratories.

METROLOGY SECTION
● HCL Super-Mini Computer, Two Mini computers
● 56 CAD Machines and 550 Personal computers.
MAN POWER (AS ON 01st May, 2017)

1. Workmen / Staff : 702

2. Supervisors : 79
3. Executives : 220
Total 1001

EMPLOYEE WELFARE AMENITIES

● Township Area - 151 Acres

● No. of Quarters - 1192
● 20 bed Hospital
● Protected Water Supply
● Underground drainage system
● English medium school with CBSE Syllabus
● Telugu medium school with AP State Syllabus
● Special school for mentally handicapped children.
● Vocational training centre for mentally handicapped

DIVERSIFICATION

● Originally established for fabrication of process equipment.

● As a step towards diversification signed collaboration agreement with M/s L’ Air
Liquide of France in 1971 for manufacture of –
○ Air & Gas separation plants
○ Cryogenic storage systems

● Further diversified into the area of industrial boilers in the range of 50 – 200 TPH
in collaboration with M/s BHEL in 1981 based on the recommendation of the
working group constituted by DHI.
 ● Entered into the area of oil & Gas Processing systems in 1990 in collaboration
with M/s B.S & B Engg. Co., USA.

COLLABORATION AND ABSORPTION OF TECHNOLOGIES

Some of the significant collaborations of BHPV entered include:

• M/s BSL, France in respect of Field erected Cryogenic Storage Tanks.
● M/s Delas, France in respect of Deaerators.
● M/s ABB Lummus, Netherlands for Heat Transfer Systems.

Case – to – case tie ups, BHPV entered into include:

● Evaporators from M/s Ecodyne Corporation, USA
● Paper & plus digesters from M/s Kamyr AB, Sweden
● Primary reformer from M/s Halder Topse, demark
● Waste heat boiler from Borsig, Germany
● Feed water heater from delas, France.
● Argon recovery unit from M/s L’Air Liquide, France etc.
● Ammonia storage system from M/s KTI, Germany etc.

By absorbing know-how from various world renowned collaborators, BHPV

upgraded its status from a mere fabricator of process equipment to that of an engineering
company of international repute.
 PROJECTS OF NATIONAL IMPORTANCE
EXECUTED/UNDER EXECUTIONS

S.NO. CUSTOMER PROJECT/EQUIPMENT

1. IOCL, Panipat Hydro cracker reactors-3 No.

2. IOCL, Panipat Reactor, Regenerator & Office Chamber

3. IOCL, Panipat Reformer WHR Package
4. IOCL, Mumbai 150 MT Capacity LPC bullets
5. IOCL, Chennai Sphere
6. BOKARD STEEL PLANT, Bokaro Argon Recovery unit
7. NRL, Numaligarh Air Fin collers/SS Clad Vessels, Spheres etc.
8. HPCL, Visakhapatnam CDU Heater with APH System/VDU Heater
9. HPCL, VREP – II Visakhapatnam Clad/CS Columns/CS heat Exchangers etc
10. HPCL, Visakhapatnam Co-boiler
11. HPCL, Visakhapatnam Revamping of 50TPH oil & gas fired boiler
12. HPCL, Mumbai 50 TPH Boiler
13. BPCL, Mumbai Nitrogen Plant
14. BHEL Thirichy Boilers
15. Hyundai Heavy Industries, New Delhi Cryo Nitrogen plant
16. Space application centre, Ahmedabad 505m Dia thermal vacuums system
17. Technimont ICB LTD. Mumbai Nitrogen plant
18. Oswal chemical fertilizer ltd –Paradeep Waste Heat LP boilers
19. IFFCO, Kandla 15,000mt ATM ammonia storage tank
20. NALCO, Damanjodi Modification of Evaporator Batteries

MAJOR CUSTOMERS
 ● Fertilizer industry
● Petroleum refineries
● Petrochemical complexes
● Steel plants
● Chemical industries
● Power sector
● Nuclear, Defense & space sectors

MAJOR COMPETITORS
● Larsen & Turbo
● GR Engg
● Lloyd steel
● I.O.L
● INOX
● L&T
● Linda, Germany

QUALITY
● BHEL is reputed for quality and workmanship of its products.

LLOYDS REGISTER OF INDUSTRIAL CLASS-1

Certificate for fusion welded pressure vessels:

Asme U & U2 stamps on pressure vessels

Asme ‘S’ stamp for industrial boilers
National board of bolier & pressure vessels ‘R’ stamp for repays of coded vessels
inspectors, U.S.A

Stami carbon Urea reactors

Haldor topsoe Ammonia reactors and high pressure heat exchangers
Arbian American oil company Process plants

RESEARCH & DEVELOPMENT

 Research & Development department was established in 1975 and is well
equipped with high tech equipment to cater to Applies Research and Product
Development. R&D has developed 136 Projects so far. Some of the products
commercialized include:

1. Titaning Anodes
2. Titanium Air Bottles
3. Cryo Vats
4. Individual Quick Freezing Unit
5. Super Insulated Piping
6. Super Insulated Crow Storage tanks
7. D.M. Water Plants

A prestigious order for Development of Heat Exchangers for Light Combat

Aircraft (LCA) Phase-II has been received from Aeronautical Development Agency,
Bangalore.

AWARDS & ACHIEVEMENTS

Some of the Awards received for excellence in R&D include:

 CIS Award for R&D achievement in 1992-93.
 “The Chelikani Atchuta Rao Memorial Award” from FAPCCI for individual
Achievement in R&D effort in 1996 (Mr BSV Prasad).

PRESENT STRENGTHS

 Excellent Design & Engineering capabilities.

 State –of –the – Art Manufacturing facilities.
 Accomplished image as a supplier of Quality Products in the domestic and
international markets.
 High degree of customer confidence.
 Technological tie-up arrangements.
  Well trained and qualified work force and Engineers.

PLANS & STRATEGIES

a. To grow as an Engineering, Procurement and Construction Company.
b. To enlarge Export Business.
c. To strive for continuous updating of technologies to be on par with
International Companies.
d. To change the work culture to be compatible with market demands.

CONSTRAINTS
 Dependence on imports even for common materials like Boiler Quality Plates.
 Port congestion adding to the delays in importing of materials.
 Big burden of high internet rates on working capital while competing with
International suppliers who have the facility of very low interest rates.
 Shortage of Man Power due to V R Scheme several times.
 Replacement/updating of machinery.

FURTHER BHEL DIVERTS THEIR ORDERS TO BHPV TO MAKE BOILERS

(TAKE OVER):
The following formal take over:
Bharat Heavy Electricals Limited (BHEL) has achieved one of the
biggest break in through so far internal business by winning a turnkey contact for setting
up a 400 M.W (Megawatt) thermal power project in Syria.

BHEL has established its tool prints in all the six continents of the world
spanning to countries & its technical competence has earned world wide acclaim.

As the first order step towards revival of BHPV, BHEL has placed the
first commercial order on BHPV following take over of the company in May 2008.

In order manufacture supply of 680 metric tons of boiler & components

including drums heaters, rises, tubes, panels, and piping products. The document to this

effect includes all the documents.

 As setting up another manufacturing plant needs massive green field

investments entry like BHPV makes better achieved by enhancing capacity with brown

field investments

BHPV is being developed as a dedicated centre for industrial boilers,

current cost structure of BHPV is similar to BHEL, costs are expected to come down due

to factories like increased volume and better financial capability leading to lower

working capital borrowing costs with a capital of Rs.236 crores spread over three years.
 CHAPTER 3

THEORETICAL FRAME WORK

INTRODUCTION
The process of human resource development helps the employees to
acquire and develop technical, managerial and behavioral knowledge, skills, abilities,
and moulds the values, beliefs and attitudes necessary to perform present and future
roles.
The process of performance appraisal helps the employees and
management to know the level of employee’s performance compared to the standard/pre-
determined level.
According to Heyel “It is the process of evaluating the performance and
qualifications of the employees in terms of requirements of the job for which he is
employed, for purposes of administration including placement, selection for promotions,
providing financial rewards and other rewards and other actions which require
deferential treatment among members of group as distinguished from actions affecting
all members equally.
Appraising the performance of individuals, groups and organization is a common
practice of all societies. While in some instances these appraisal processes are structured
and formally sanctioned, in other instances they are an informal and integral part of daily
activities.

DEFINITION
Performance evaluation or performance appraisal is the process of assessing the
performance and progress of an employee or a group of employees on a given job and is
potential for future development.

CONCEPT
Appraising the performance of individuals, groups and organizations is a common
practice of all societies. While in some instances these appraisal process are structured
and formally sanctioned, in other instances they are an informal and integral part of daily
activities. In social interactions performance is conducted a systematic and planned
manner to achieve wide spread popularity in recent years.
Performance appraisal is defined as “it is the process of determining and
communicating to an employee how he or she is performing on the job and ideally
establishing a plan of improvement. Performance appraisal is the method of evaluating
the behaviour of employee in the work spot, normally including both the quantitative and
qualitative aspect of job performance.

HISTORY
Employees appraisal techniques are said to have been used for the first time during
the first world war, when, at the instance of walter dill scott the US army adopted the “
Man to Man” rating system for evaluating military personal. Earlier employee plans were
called merit rating programmers which continued to be so called up to the fifties. In the
early fifties, attention began to be devoted to the performance appraisal of technical,
professional and management personal.

PERFORMANCE APPRAISAL IS NEED IN ORDER TO…

1. Provide information about performance ranks basing on which decision regarding
salary fixation conformation, promotion, transfer and demotion are taken.
2. Provide information, which helps to counsel the subordinates.
3. Provide information to diagnose deficiency in employee regarding skill,
knowledge, determine training and development needs and to prescribe the means
for employee growth provides information for correcting placement.

PURPOSE
Performance appraisal aims at attaining the different purposes.
They are:
1. To help the supervisors to have a proper understanding about their
subordinates.
2. To guide the job change with the help of continuous ranking.
3. To facilitate fair and equitable compensation based on performance.
4. To provide information for making decisions regarding layoff.
 5. To ensure organizational effectiveness through correcting employee for
standard and improved performance, and change employee behavior.

OBJECTIVES OF PERFORMANCE APPRAISAL

1. Role clarity
2. Self assessment by employees
3. Understanding strengths & weakness
4. Identifying training and development needs
5. Identifying potential
6. Better understanding between appraiser & appraise
7. Recognizing achievements
8. Goal setting
9. Improved organizational performance

BENEFITS OF PERFORMANCE APPRAISAL SYSTEM

1. Improved organizational performance due to:
KEY RESULT AREAS (KRA’S) or KEY PERFORMANCE AREAS
(KPA’S) Cleary defined and communicated.
2. Improved team work and leadership
3. Better understanding of the tasks performed by each employee.
4. Defining of KRA’S in the beginning, long term plans can be developed.
5. Training and developmental needs can be more clearly identified.

FOR THE APPRAISER

1. Better relationship with subordinates.
2. Can identify ideas for improvement
3. Increased sense of involvement
4. Can define departmental objectives and plans in better way.

FOR THE APPRAISEE

1. Once the KPA’S or KRA’S are defined gets the opportunity to work
independently.
 2. Increased motivation.
3. Increased sense of belongingness
4. Increased sense of commitment.
5. Opportunity to discuss work related problems with the superior.

MOTIVATION AND SATISFACTION

 Performance appraisal can have a profound effect on levels of employ motivation
and satisfaction – for better as well as for worse.
 Performance appraisal provides employees with recognition for their work efforts.
 Absenteeism and turn over rates in sum organizations might be greatly reduced it
more attention was paid to it. Regular performance appraisal, at least is a good start.

TRAINING AND DEVELOPMENT

Performance appraisal offers an excellent opportunity – perhaps the best
that will ever occur – for a supervisor and subordinate to recognize and agree upon
individual training and developmental needs.
During the discussion of an employees work performance, the presence or
absence of works skills can become very obvious – even to those who habitually reject
the idea of training for them!

RECRUITMENT AND INDUCTION

Appraisal data can be used to monitor the success of organization’s
recruitment and induction practices. For example how well are the employees
performing who were hired in the past two years?
Appraisal data can also be used to monitor the effectiveness of changes in
recruitment strategies by following the yearly data related to new hires and given
sufficient numbers on which to base the analyses) it is possible to asses whether the
general quality of the work force is improving, staying steady, or declining.

EMPLOYEE EVALUATION
Though often under stated or even denied, evaluation is a legitimate and
major object of performance appraisal. But the meet evaluate (i.e. to judge) is also an
ongoing source of tension, since evaluative and developmental priorities appear to
frequently clash. Yet at its most basic level, performance appraisal is the process of
examining and evaluating the performance of an individual.

METHODS OF PERFORMANCE APPRAISAL

With the evaluation of development of appraisal system, a number of
methods or techniques of performance appraisal have been developed. The impotent
among them are divided into two types.
The performance appraisal is divided into two types:

1. TRADITIONAL METHODS
2. MODERN METHODS

Traditional methods are again are divided into:

1. Graphic rating scales.
2. Ranking method
3. Paired comparison method.
4. Forced distribution method.
5. Check list method.
a. Simple check list method.
b. Weighted check list method.
c. Critical incident method.
6. Essay or free form appraisal.
7. Group appraisal.
8. Confidential report.

Modern Methods:
1. Behaviorally Anchored Rating scale(BARS)
2. Assessment centre.
3. Human Resource Accounting.
4. Management by Objectives(MBO)
5. Psychological Appraisal.
Traditional Methods:

1. Graphic Rating Scales:

Graphic rating scales compare individual performance to an absolute
standard. In this method, judgments about performance are recorded on a scale. This
is the oldest and widely used technique. This method also is known as linear rating
scale or simple rating scale.
Rating scales are of two types, viz., continues rating scale and
discontinues rating scales. In continues order like 0, 1, 2, 3, 4 and 5 and in
discontinues scale the appraiser assigns the point to each degree.
Performance regarding each character is known by the points given by the
rater. The points given by the rater to each character are added up to find out the
overall performance. Employees are ranked on the bases of total points assigned to
each one of them.

2. Ranking Method:
Under this method the employees are ranked from best two worst on some
characteristics. The rater first finds the employee with the highest performance and
the employees with the lowest performance in that particular job category and rates
the former as the best and the later as the poorest. Ranking can be relatively
easy and in expensive, but its reliability and validity may be open to doubt. It may be
affected by rater bias or varying performance standards. Ranking also means that
some body would always e in the back bench.
It is possible that the low ranker individual in one group may turn out to be
superstar in another group. One important limitations of the ranking method is that
the size of the difference between individual is not well defined. For instance, their
may be little difference between those ranked third and forth.

3. Paired Comparison Method:

This method is relatively simple. Under this method, the appraiser ranks
the employee by comparing one employee with all other employees in the group, one
at a time. As illustrated this method results in each employee being given a positive
comparison total and a certain percentage of the total positive evaluation.
 4. Forced Distribution Method:
The rater may rate his employee at the higher or at lower end of the scale
under the earlier methods. Forced distribution method is developed to prevent the
raters from rating too high or too low. Under this method the rater after assigning the
points to the performance of each employee has to distribute his rating in the pattern
to conform to normal frequency distribution.
This method eliminates central tendency and leniency biases. How ever,
in this method employees are placed in certain ranked categories but not ranked with
in the categories. Quite often work groups do not reflect a normal distribution of
individual performance.
This method is based on the assumption as group of employees will
have the same distribution of excellent, average and poor performers. If one
department has all out standing employees, the supervisor would find it extremely
difficult to decide who should be placed in the lower categories. Difficulties is can
also arise when the rater must explain to the employee why he was placed in one
grouping and others were placed in higher grouping.

5. Check List Method:

The check list is simple rating technique in which the supervisor is given
a list of statement are words and asked to check statements representing the
characteristics and performance of each employee. There are three types of check list
methods, viz., simple check list, weighted check list and forced choice method.

a. Simple Check List Method:

The checklist consists of large number of statements concerning employee

behavior:
 PERFORMANCE APPRAISAL FORM

Name of the employee: Number:

Designation: Department:

Checklist of qualities: Behavior:

1. Is the employee punctual in attending the office? Yes/No

2. Does the employee behave courteously with his supervisors? Yes/No
3. Does the employee maintain sound customer relations? Yes/No
4. Is the employee sincere in doing job? Yes/No
5. Does the employee behave well with the public outside the organization?
Yes/No
The rater check list is to indicate if the behavior of an employee is positive
or negative to each statement. Employee performance is rated on the basis of number of
positive checks. The negative checks are not considered in this method. A difficulty
often arises because the statements may appear to be virtually identical in describing the
employee. The words or statements may have different meaning to different raters.

b. Weighted Checklist:
The weighted checklist method involves weighting different items in the
checklist having a series of statements about an individual, to indicate that some are
more important than others. The rater is expected to look in to the questions relating
to the employee’s behavior, the attached rating scale (or simply positive/negative
statements where such a scale is not provide) and tick those traits that closely
describe the employee behavior.
Often the weights are not given to the supervisors who complete the
appraiser process but are computed and tabulated by some one else such as a member
of personal unit. In this method the performance ratings of the employee are
multiplied by the weights of the statements and co-efficient are added up.

c. Critical Incident Method:

Employees are rated discontinuously that is once in a year or six months
under the earlier method. The performance rated may not reflect real and overall
 performance as the rater would be series about appraisal just two or three weeks
before the appraisal.
Hence a continues appraisal method, i.e., critical incident method has
been developed. Under this method, the supervisors continuously record the critical
incidents of the employee performance or behavior relating to all characteristics
(both positive and negative).
The critical incident method has the advantage of being objective because
the rater considers the records of performance rather then the subjective points of
opinion.

6. Essay or free form Appraisal:

This method requires the manager to Wright a short essay describing each
employee’s performance during the rating period. This format emphasizes evaluation
of overall performance, based on strengths and weaknesses of employee
performance, rather than specific job dimensions. By ask him supervisors to
enumerate specific examples of employee behavior; the essay technique minimizes
supervisory bias and halo effect.

7. Group Appraisal:
Under this method, an employee is appraised by a group of appraisers.
This group consists of the immediate supervisor of the employee, to other supervisors
who have close contact with the employee’s work, manager or head of the
department and consultant. The head of the department or manager may be the
chairman of the group and the immediate supervisor may act as the co- coordinator
of the group activities.

8. Confidential Reports:
Under this method, superior appraises the performance of his sub-ordinates based
on the observations, judgments and institutions. The superior keeps his judgment and
reports confidentially.
Modern Methods:

1. Behaviorally Anchored Rating Scales (BARS):

The behaviorally anchored rating scales (BARS) method combines
elements of the traditional rating scale and critical incidents methods. Using BARS,
job behaviors from critical incidents – effective and ineffective behavior are
described more objectively.
BARS require considerable employee participation, its acceptance by both
supervisors and their subordinates may be grater. Proponents of BARS also claim
that such a system differentiates among behavior, performance and results, and
consequently is able to provide a basis for setting developmental goals for the
employee. Because job – specific and identifies observable and measurable behavior,
it is more reliable and valid method for performance appraiser.

2. Assessment Centre:
This method of appraising was first applied in German army in 1930.
Later business and industrial houses started using this method. This is not a technique
of performance appraisal by it self. In fact it is a system or organization, were
assessment is done by several individuals and also by various experts by using
various techniques.
In this approach individual from various departments are brought together
to spend two or three days working on an individual or a group assignment similar
too the ones they would be handling when promoted. All assesses get an equal
opportunity to show their talent and capabilities and secure promotion based on
merit.

3. Human Resources Accounting:

Human resource accounting deals with cost of and contribution of human
resources to the organization. Cost of the employee includes cost of the man power
and planning, recruitment, selection, induction, placement, training, development,
wages and benefits etc. employees contribution is the money value of the employee
service which can be measured by labour productivity or value added by human
resources.
4. Management by Objectives (MBO):

Although the concept of management by objectives was advanced by

PETER F. DRUCKER way back in 1954, it was described only recently as “Large
range” in performance appraisal.
MBO is a process were by the superiors and subordinates managers of
an organization jointly identified its common goals, define each individuals major
areas of responsibility in terms of results expected of him, and use these measures of
guides for operating the unit and assessing the contribution of its members. Generally
the MBO process is undertaken along the following lines.
The subordinate and superior jointly determined goals to be accomplished
during the appraisal period and what level of performance is necessary for the
subordinate to satisfactory achieve specific goals.
During the appraisal period the superior and subordinate update and later
goals as necessary due to changes in the business environment.

5. Psychological Appraisal: appraisal

Psychological appraisal are conducted to assess the employee potential,
psychological appraisal consists of
 In – depth interviews
 Psychological tests
 Consultations and discussions with the employee
 Discussions with supervisor sub – ordinates and peers
 Reviews of others evaluations.
Evaluation is conducted in the areas of
a. Employee’s intellectual abilities.
b. Emotional stability
c. Motivation responses
d. Sociability
The psychological appraisal results are useful for decision – making about
i. Employee placement
ii. Career planning and development and
iii. Training and development.
SYSTEM OF PERFORMANCE APPRAISAL

Performance appraisal is a nine – step process:

1. Establish performance standards.
2. Communicate standards/ expectation to employee.
3. Measure actual performance due to the environmental influences.
4. Adjust the actual performance due to the environmental influence.
5. Compare the adjusted performance what that of others and previous.
6. Compare the actual performance with standards find out deviations if any.
7. Communicate the actual performance to the employee concerned.
8. Suggest changes in job analysis and standards if necessary.
9. Follow up performance appraisal report.

 At the first stage, performance standards are established based on the job description
and job specification. The standard should be clear, objective and incorporate all the
factors.
 The second stage is to inform the standards to all the employees including
appraisers.
 The third stage is following the instructions given for appraisal, measurement of
employee performance by the appraisers through observations, interviews, records
and reports.
 Forth stage is finding out the influence of various internal and external factors on
actual performance. The influence of these factors may be either inducing or
hindering the employee performance. The measured performance may be adjusted
according to the influence of external and internal factors. The performance derived
at this stage may be taken actual performance.
 Fifth stage is comparing the actual performance with that of the other employees and
previous performance of the employee and others. This gives an idea where the
employee to the influence of external and internal factors. The performance derived
at this stage may be taken as actual performance.
 Sixth stage is comparing the actual performance with the standards and deviations
finding. Deviations may be positive or negative. If employee’s performance is more
then standards, it is positive deviation and vice – versa is negative deviation.
 Seventh stage is communicating the actual performance of the employee of and other
employees doing the same job and discuss with him about the reasons for the positive
or negative deviations from the pre – set standards as the case may be.
 Eight stages are suggestions necessary changes in standards in job analysis, internal
and external environment.
 Ninth stage is follow up of performance appraisal report. This stage includes guiding,
counseling, coaching, and directing the employee or making arrangements for
training and development of the employee in order to ensure improved performance.
If actual performance is very poor and beyond the scope of improvement it is
necessary to take steps for domination or retrenchment or any other suitable measure.

COUNSELING

After the performance of the employee is apprised, the superior should

inform the employee about the level of his performance, the reason for the same, need
for and the methods of improving the performance. The superior should counsel the
employee about his performance and the methods of improving it.
Counseling is planned, systematic intervention in the life of an individual
who is capable of choosing the goal and the direction of his development.

THE POST APPRAISAL INTERVIEW

The post appraisal interview has been considered by most of the

organizations, as well as employees, as the most essential part of appraisal system. This
interview provides the employee the feedback information, and an opportunity to
appraiser to explain the employee his rating, the traits and behavior he has taken into
consideration for appraisal etc.
It also gives the opportunity to employee to explain his views about the
rates, standards or goals, rating scales, internal and external environmental causes for
low level of performance, and his resources responsible for performance etc. further it
helps both the parties to review standard, set new standards based on the reality factors,
and helps the appraiser to offer his suggestions, help, guide and coach the employee for
his advancement. The post appraiser interview his designed to achieve the following
objectives.
1. To let employees know where the stand.
2. To help do a better job by clarifying what is expected of them.
3. To plan opportunities for development and growth.
4. To strengthen the superior – subordinate working relationship by
development a mutual agreement of goals.
5. To provide an opportunity for employees to experience them selves on
performance related issues.
The post appraisal interview is most helpful to the employee as well as his superior.

PERFORMANCE APPRAISAL TO REWARDING

Management should recognize and performance. The forms of recognizing and

rewarding performance include:
a. Private and public praise.
b. Written commendation.
c. Published commendation.
d. Increased autonomy.
e. Change in the title.
f. Status symbols like office space, furnishing.

MANAGERIAL APPRAISAL

It is relatively easy to appraise the performance of technical or operative

employees compared to managerial personal. This is because, the performance of
operative employees can be measured quantitatively where as the performance of
managers can not be determined quantitative terms. Harold koontz has developed a
concept of managerial functions, viz., planning, organizing, leading, motivating, staffing
and controlling each of these functions can be performed by performing a number of or
series of activities. For example, performing staffing functions requires performing a
series of activities like analyzing jobs of his department, planning for human resources,
deciding upon internal and external recruitment.

COMMON MISTAKES
Where performance appraisal fails to work as well as it should, lack of
support from the top level of management is often sited as a major contributing reason.
Opposition may be based on political motives, or more simply, on
ignorance or disbelief in the effectiveness of the appraisal process.
It is crucial that top management believe in the value of appraisal and
express their visible commitment to it. Top managers are powerful role models for other
managers and employees.

FEAR OF FAILURE
There is a stubborn suspicion among many appraisers that a poor
appraisal result tends to reflect badly upon them also since they are usually the
employee’s supervisor. Many appraisers have a vested interest in making their
subordinates “Look good on Paper”.

EMPLOYEE PARTICIPATION
Employees should participate with their supervisors in the creation of
their own performance goals and development plans. Mutual agreement is a key to
success. A plan where in the employee feels some degree of ownership is more likely to
be accepted than one that is imposed. This does not mean that employees do not desire
guidance from their supervisor, indeed they very much do.

PERFORMANCE MANAGEMENT
One of the most common mistakes in the practice of performance
appraisal is to perceive appraisal as an isolated event rather than an on going process.
 Employee is generally required more feedback, and more frequently, than
can be provided in an annual appraisal while it may not be necessary to conduct full
appraisal session more than once or twice a year.

Performance management should be viewed as an on going process.

Frequent many appraisers and feedback sessions will help ensure that employees receive
the on going guidance, support and encouragement they need.

BIAS EFFECTS

Frustration: Of course, not everyone who gets a poor appraisal result is a victim of
supervisory bias. Nor are all supervisors prone to making the same degree of in–group
and out–group distinction. The effects discussed here are tendencies, not immutable
effects.
But to some extent, it appears that certain employees may be unfairly advantaged,
while bias effects in the judgments of supervisors disadvantage others.
It is a cardinal principle of performance appraisal that employee should have the
chance to improve their appraisal results – especially if their past results have not being
so good. It very series flaw in the process of appraisal if this principle is denied in
practice.

Awareness Training: The first line of defense lies in raising awareness of the problem.
Supervisors need to be informed of the types of subtle bias that can be interfering with
their performance as their appraisers. They need to understand that the in-group/ out-
group bias for instance, reduces the morale and motivation of their subordinates.

Developing Poor Performers: Incentives, financial or non financial, may offer to

encourage supervisors to make special efforts to help poor performers improve.
Supervisory appraisal, for example might stress the importance of working with poor
performance to upgrade their performance. The possibilities are extensive.

Counseling, Transfer, Termination: There is always the possibility that an employee

who receives poor appraisal result is infact, a chronic poor performer no employee is
obliged to tolerate poor performance for ever. Consistently poor appraisal results will
indicate a need for counseling, Transfer, or Termination. The exact remedy will depend
on the circumstance.
 PERFORMANCE APPRAISAL IN BHEL

PERFORMANCE APPRAISAL

Appraising the Performance of individual, groups and organizations is a

common practice of all societies. Performance Appraisal is a method of evaluating the
behavior of employees in the work spot, normally including both quantitative and
qualitative aspects of job performance. It refers to the degree of accomplishment of the
tasks. That makes up in individual jobs. They important future of performance appraisal
is the systematic description of an employee’s job relevant strengths and weaknesses.

Performance Appraisal refers to how well someone is doing the assigned job.
It is a continuous process in large scale organization. They need for performance
appraisal provide information about the performance ranks basing on which decision
regarding conformation, promotion, transfer and demotion are taken. It provides
feedback information about the level of achievement and behavior of subordinate, which
helps to review the performance.

PERFORMANCE REWARD SCHEME

Performance Reward Scheme is basically designed to offer an award to the employees

based on the overall performance achieved by the company in each financial year.

The scheme will cover all categories of regular employees of BHPV excepting those
appointed by the president.

The scheme is applicable only in case there is minimum net profit of Rs 1 crore after
making suitable provision towards statutory bonus & the proposed performance reward,
during the financial year.

The profit sharing bonus payable under the payment of Bonus act and the reward payable
under this scheme together shall not exceed 20%.
 PERFORMANCE APPRAISAL REPORT FOR EXECUTIVES

Part 1:

A. PERSONAL DATA (To be filled by Executive Personal

Department)
1. Name :
2. Badge Number :
3. Designation/ :
Department
4. Date of Appointment :
5. Date of entry in the :
present grade
6. Date of Birth :
7. Qualifications & :
year of passing:

B. SELF APPRAISAL (To be filled by the appraise)

1. A brief description of work done :
during the appraisal period
2. Specific achievement, if any :
3. Personal strengths & self :
4. development effort made
during the appraisal period &
Mention of short falls if any,
If any, if required :

Date: Signature of the Appraisee

NAME:
BADGE NO:
DESIGNATION & DEPT.
Part 2:

To be filled by the REPORTING OFFICER.

DESCRIPTIVE ASSESSMENT:

1. Professional knowledge :
2. Work output, qualitative & quantitative :
Vis-à-vis the targets fixed or tasks assigned
3. capacity for sustained hard work and :
thoroughness in job
4. Creativity & innovativeness :
5. Commitment & self motivation :
6. Ability to plan and organize :
7. Communication skills; both oral & :
Written
8. leadership: To get the best :
Out of his team; guide & develop his team;
Maintain discipline and motivate his team.
9. Interpersonal relations & capacity to :
work as a team
10. Decision making :
11. Judicious use of resources available :
12. Ability and willingness to accept :
13. Concern for organization for interest :
14. Efforts on self-development :
15. Integrity :
Part 3:

(A) Gradation:

A B+ B C D
Factors Outstanding Very good Good Average Poor
Professional
knowledge
Work output
Capacity for
hard work
Creativity &
innovativeness
Involvement &
Self-motivation
Planning and
organizing
Communication skills
Leadership
Interpersonal
relations
Decision making
Judicious use of
resources
Ability to accept
responsibility
Self-development
Integrity

(B) Further comments of Reporting Officer on the traits, attitudes & approaches of the
Officer.

(C) Overall Assessment

1. By the Reporting Officer

2. By the Reviewing Officer

3. By the Accepting Officer

(D) Final Gradation:

RATINGS Outstanding Very good Good Average Poor

By the Reporting Officer
By the Reviewing
Officer
By the Accepting Officer

Part 4:
Please indicate the training needs of the appraise & his/her potential. Specify the areas in
which the person needs counseling.
1. By the Reporting Officer

2. By the Reviewing Officer

3. By the Accepting Officer

Signature of Reporting Officer Signature of Reviewing Officer

Name Name
Date Date
Designation with stamp Designation with stamp

Signature of Accepting Officer

Name
Date
Designation with stamp
PERFORMANCE APPRAISAL REPORT FOR STAFF
FOR THE YEAR ENDING: ANNUAL/PROBATIONARY
NAME:
BADGE NO : DESIGNATION :
DVN./DEPT.: DATE OF JOINING IN PRESENT
GRADE

SL.NO. QUALITY TO BE V.Good Good Average Unsatisfactory Poor

RATED
1 KNOWLEDGE
2 ACCURACY
3 INDUSTRY
4 DEPENDABILITY
5 HOUSE-KEEPING
6 COOPERATIVENESS
7 DISCIPLINE &
LOYALITY
8 PUNCTUALITY &
ATTENDANCE
9 INITIATIVE
10 CHARACTER
11 Consider all the above.
What is the present
assessment of his ability?
12 Any outstanding work
done by him during the
year
13 Remedial actions for
improving him
Reviewing officer’s remarks: ………………………………………..
Accepting officer’s remarks: ………………………………………..
PERFORMANCE APPRAISAL REPORT FOR WORKERS
FOR THE YEAR ENDING: ANNUAL/PROBATIONARY
NAME:
BADGE NO : DESIGNATION :
DVN./DEPT.: DATE OF JOINING IN PRESENT
GRADE

SL.NO. QUALITY TO BE V.Good Good Average unsatisfactory Poor

RATED
1 Quantity of output
2 Quality of work
3 Knowledge of
work
4 Conduct and
Discipline
5 Safety awareness
and house keeping
6 Punctuality and
attendance
7 Readiness to
accept new ideas
and suggestions
8 Relations with co-
workers &
supervisors
9 Capacity for
skilled work of
higher type and
quality
10 Reliability &
Dependability
11 Consider all the
above. What is the
present assessment
 of his ability
12 Any outstanding
work done by him
during the year
13 Remedial actions
for improving him

Reviewing officer’s remarks

Accepting officer’s remarks
PERFORMANCE APPRAISAL REPORT FOR SUPERVISORY PERSONNEL

FOR THE YEAR ENDING: ANNUAL/PROBATIONARY

NAME:
BADGE NO : DESIGNATION :
DVN./DEPT.: DATE OF JOINING IN PRESENT
GRADE

SL.NO. Quality to be rated V.Good Good Average unsatisfactory Poor

1 Executive capacity
2 Job knowledge
3 Planning and
organizing ability
4 Initiative and drive
5 Personal efficiency
6 Co-operativeness
7 Leadership
8 Amenability to
discipline
9 Loyality
10 Punctuality and
attendance
11 Readiness to accept
new ideas
12 Ability to express
himself-oral
13 Ability to express
himself –written
14 Intelligence

15
Character and integrity
16 Consider all the above.
What is the present
assessment of his
ability
17 Any outstanding work
done by him during the
year
18 Remedial actions for
improving him

Reviewing officer’s remarks:

Accepting officer’s remarks:

 CHAPTER 4

DATA ANALYSIS AND INTERPRETATION

1. Is the Performance Appraisal increases employees motivation?

Table 1:

S.No Particulars No. of respondents % of respondents

1 Yes 20 50%
2 Partially yes 10 25%
3 No 5 12.5%
4 Can’t say anything 5 12.5%
Total 40 100%

Graph 1

Interpretation:
From the above graph it was observed that 50% of people are agreed that the
performance appraisal will be helpful in increasing the employee motivation in BHEL,
and 25% says partially yes and remaining say ‘No’ and ‘can’t say’ anything.
2. Appraisal system is conducted in BHPV
Table 2:
S.No Particulars No. of respondents % of respondents
1 Annually 22 55%
2 Bi- annually 13 32.5%
3 Quarterly 5 12.5%
Total 40 100%

Graph 2

Interpretation:
From the graph it was observed that 55% of people says that performance appraisal
should be conducted annually, and 32.5% says that appraisal system should be conducted
bi-annually, and 12.5% says quarterly.
3. Performance Appraisal system doesn’t include any biasness by superior
Table 3:
S.No Particulars No. of Respondents % of respondents
1 Agree 27 67.5%
2 Dis-agree 13 32.5%
Total 40 100%

Graph 3

Interpretation:
From the above graph it was observed that, 67.5% people says that performance
appraisal system doesn’t include any biasness by superior and rest of the employees are
disagree.

4. Performance Appraisal helps to win co-operation and teamwork

Table 4:

No. Of
S.No Particulars % of Respondents
Respondents

1 Agree 31 77.5%
2 Disagree 9 22.5%
Total 40 100%
Graph 4

Interpretation:
From the above graph it was observed that 77.5 % people says agree that the
Performance Appraisal helpful to win the team work and remaining are disagree to it.

5. Is performance Appraisal ratings were done periodically

Table 5:
No. Of
S.No Particulars % of Respondents
Respondents
1 Yes 12 30 %
2 No 13 32.5%
3 Can’tsay anything 15 37.5%
Total 40 100%
Graph 5

Interpretation:
From the graph it was observed that 30% of people responded positively for Performance
Appraisal ratings and remaining 32.5% and 37.5% says no and can’t say anything
respectively.

6. Are you satisfied with the Performance Appraisal system

Table 6:
No. Of
S.No Particulars % of Respondents
Respondents
1 Yes 17 42.5%
2 No 23 57.5%
Total 40 100%

Graph 6
Interpretation:
From the above it was observed that 42.5% of people are satisfied with the Performance
Appraisal system of BHPV and remaining were not at all satisfied.

7.Do you aware of existing performance Appraisal system

Table 7:
No. Of
S.No Particulars % of Respondents
Respondents
1 Yes 14 35%
2 No 26 65%
Total 40 100%

Graph 7

Interpretation:
From the above table it was observed that 35% of the employees says that they were
aware of performance Appraisal system and 65% people are not aware of existing
performance Appraisal system.

8. What are the methods followed for performance Appraisal in BHPV

Table 8:
No. Of
S.No Particulars % of Respondents
Respondents
1 Assessment center 6 15%
2 Pyschological method 4 10%
3 Ranking method 22 55%
4 360 degree Appraisal 8 20%
Total 40 100%

Graph 8

Interpretation:
From the above table, it was observed that the BHPV follow 55% ranking method to
rate the performance of an employee and remaining 15% assessment center, 10%
psychological method, 20%,360 degree appraisal.

9. Is Performance Appraisal helpful to disclose your strengths and weakness

positively
Table 9:
 No. Of
S.No Particulars % of Respondents
Respondents
1 Yes 17 42.5%
2 No 23 57.5%
Total 40 100%
Graph 9

Interpretation:
Froms the table it can be known that 57.5% of people says that the performance appraisal
of the company is not helpful to increase their strengths and the remaining are satisfied
with performance appraisal.

10. How do the employees accept the Appraisal Feedback

Table 10:
No. Of
S.No Particulars % of Respondents
Respondents
1 In Positive way 12 30%
2 In Negative way 14 35%
3 Uninterested 4 10%
4 Neutral 10 25%
Total 40 100%

Graph 10
Interpretation:
From the table it can be known that 30% are respondent in positive way
and 35% are in negative sense and 10% are uninterested to respond and remaining 25%
are neutral.

11. Are the employees given any career planning/training for development after
Performance Appraisal
Table 11:
S.NO Particulars No. of % of respondents
Respondents
1 Yes 16 40%
2 Partially yes 9 22.5%
3 No 13 32.5%
4 Can’t say anything 2 5%
Total 40 100%

Graph 11
Interpretation:
From the above table 40% of employees are respond as in training and career
planning is provided to them after their performance appraisal by top management.

12. Salary hike depends on assessment of Performance drawn from appraisal

Table 12:
S.No Particulars No of % of respondents
respondents
1 Agree 6 15%
2 Strongly agree 6 15%
3 Disagree 13 32.5%
4 Strongly disagree 15 37.5%
Total 40 100%

Graph 12
Interpretation:
From the above table 37.5% of respondents strongly dissatisfied regarding their hike
in salary.

13. Appraisal system provides a scope for professional development by providing

future growth and opportunities agree
Table 13:
S.No Particulars No of % of respondents
respondents
Agree 13 32.5%
2 Disagree 17 42.5%
3 Strongly disagree 10 25%
Total 40 100%

Graph 13

Interpretation:
From the above table it represents that 42.5% of employees are disagree with the
performance appraisal because of it does not provide any scope for future growth and
opportunities.
14. Results of Appraisal are disclosed immediately after the process is over
Table 14:
S.No Particulars No of % of respondents
respondents
1 Agree 17 42.5%
2 Disagree 13 32.5 %
3 Strongly disagree 10 25%
Total 40 100%
Graph 14

Interpretation:
From the above table it represents that 42.5% of employees are agreed with, the results
of performance appraisal are disclosed immediately after the process is over

15. Do you agree to have a separate committee to review the Performance Appraisal
result
Table 15:
S.No Particulars No of % of respondents
respondents
1 Yes 28 70%
2 Partially yes 6 15%
3 No 4 10%
4 Can’t say anything 2 5%
Total 40 100%

Graph 15
Interpretation:
From the above table it was observed that 70% of employees are positively respond to

have a separate committee in the organization to review the performance appraisal of

them.

16. Is Performance Appraisal put to achieve the organization goals

Table 16:
S.Nos Particulars No of % of respondents
respondents
1 Yes 14 35%
2 Partially yes 6 15%
3 No 17 42.5%
4 Can’t say anything 3 7.5%
Total 40 100%

Graph 16
Interpretation:
From the above table it represents that 42.5% of respondents says that the performance
appraisal of organization is not help full to them to achieve their goals in the organization

17. Transfer, demotion, suspension and dismissal is based on Performance

Appraisal
Table 17:
S.No Particulars No of % of respondents
respondents
1 Yes 17 42.5%
2 Partially yes 11 27.5%
3 No 9 22.5%
4 Can’t say anything 3 7.5%
Total 40 100%

Graph 17

Interpretation:
 From the above table 42.5% of respondents agreed with the transfer demotion,
suspension & dismissal was based on performance appraisal in the organization.

18. The Performance Appraisal is helpful for improving personnel skills

Table 18:
S.No Particulars No of % of respondents
respondents
1 Yes 8 20%
2 Partially yes 10 25%
3 No 19 47.5%
4 Can’t say anything 3 7.5%
Total 40 100%

Graph 18

Interpretation:
From above table represents 47.5% of employees says that the performance appraisal do
not improve any personnel skills of them.
19. Which one you thing is the best Performance Appraisal system for your
organization
Table 19:
S.No Particulars No of %of respondents
respondents
1 Performance &potential 8 20%
2 Team appraisal 17 42.5%
3 Self appraisal 2 5%
4 360(degree) 13 32.5%
Total 40 100%

Graph 19

Interpretation:

From above table represents 42.5% of respondents vote to team appraisal and 32.5%
vote to 360 degree, and remaining 20% vote to performance and potential, and rest of
respondents vote to self appraisal.

20. Do you think performance appraisal help in assessing the training needs of the
subordinates
Table 20:
 No. Of
S.No Particulars % of Respondents
Respondents
1 Yes 23 57.5%
2 No 11 27.5%
3 Some times 6 15%
Total 40 100%

Graph 20

Interpretation:
From the above table it represents that 57.5% of respondents says that, the performance
appraisal helps in assessing the training needs of the subordinates.
 CHAPTER 5

SUMMARY

The performance appraisal system in BHARAT HEAVY PLATES AND

VESSELS LTD. is well designed to cater the objective of evaluating correctly the overall
performance of executives, however further improvements can be made to the
performance appraisal system.
BHPV executives appraisal system mainly aims at performance based
recognition, competencies to handle further/current jobs, career growth and key inputs
that are required to facilitate executives’ further development.
A good number of executives were not satisfied with the ceiling prescribed for
the distribution of executives in the grading system, as a consequence, some executives
inherently are graded below their actual performance rating in order to fulfill the quota
number allotted to each grade.
Another area of discontentment among some of the executives was that the time e
spent by the appraiser with appraise is not adequate enough for the appraiser to be able to
accurately judge the performance of the appraise other than the evaluation of the tasks /
targets set by appraise.
“Performance Appraisal is the process of retaining and communicating
employee how he or she is performing on the job and ideally, establishing a plan of
improvement”.
The study was conducted in BHEL to assess the Performance Appraisal method
used and suggest improvement and innovations where necessary. The objective of the
study is to know the present system of performance appraisal system and the concept
which are appraised in BHPV.
FINDINGS

After analysis of the data which was collected through questionnaire from the
respondents, the study resulted with some of the finding that are explained as follows.
 Maximum number of the employees are not aware of the performance appraisal
system in the organization.
 The employees are kept informed about the performance appraisal system by the
Head of the Department.
 Performance Appraisal helps the employee to evaluate and develop themselves.
 Results of the Performance Appraisal are always discussed with the Appraise.
 Employees are always given advice or suggestions after completion of performance
appraisal which are not helpful to them effectively.
 There is no improvement in skills and knowledge of the employee after the
completion of performance appraisal.
 Employees were hesitating to fill the questionnaire while conducting a survey.
 There is no hike in salaries.
 The performance appraisal is not eligible to achieve organization goals.
 The BHPV limited was undertaken by the BHEL LIMITED, because of the
company was running into losses.

SUGGESTIONS

After conducting the study ob “Performance Appraisal System” with

respect to BHPV and collecting opinions from 40 respondents through questionnaire,
the information which was collected is stored and analyzed by using different statistical
tools like tables, pie charts. After this extensive and well performed analysis of the data
some of the findings and suggestions from the respondents with regard to by
improvement that have to identify “Performance Appraisal”.
1. The period of appraisal system should be made quarterly or half yearly as this
would lead to the regular improvement of skills and performance.

2. A selective task focused appraisal should be made.

 3. Appraisal system should provide needed feedback on a continues bases.

4. There should be quarterly review meetings on performance appraisal so

that the performance is properly monitored.

5. The standard of measurement and the criteria for what will be measured
should be made known to the employee.

CONCLUSION

The project lays emphasis on the view point of Appraiser because they are
vital persons in execution of performance of Appraise.
One of the conclusions based on Appraiser’s views is that the major
purpose of Performance Appraisal is to promoting the employee and helping for their
career development the major factor consider by them in evaluating the performance are
their job knowledge and performance and dedication to the organization.
This study focuses on the appraisee’s viewpoint on performance appraisal
because they are the direct people who get affected either positively or negatively by the
results of the appraisal. The view point of them presented gives us to draw the following
conclusions.
All the Appraisee’s are aware of performance appraisal system, it’s
periodically and the appraising officers. But some are not informed about the results of
the appraisal. So far as training is concerned, many of them are not given on the basis of
their performance appraisal. Interestingly majority of the appraisee’s stated that the
present system of Performance Appraisal is useful for their development.
The study further found that the appraisee’s preferred to be appraised by
Head of the Department or superior and they art4 happy with present periodicity of
Performance Appraisal i.e., One year.
On the whole, it can be stated that the performance appraisal is affectivity
functioning in Bharat Heavy Plates and Vessels ltd. . However certain improvements are
suggested to make the Performance Appraisal more effective.
 BIBILOGRAPHY

1. Text books

● HUMAN RESOURCE INDUSTRIAL RELATIONS

- V. SUBBA RAO

● PERSONNEL MANAGEMENT
-EDWIN B FLIPPO

2. Journals

• ANNUAL REPORTS AND MANUALS OF B.H.P.V Ltd.

3. Websites
www.bhpvl.com
www.bhel.com
 ANNEXURE

QUESTIONNAIRE

Name [Optional] : Designation :

Department : Qualification :

1. Performance appraisal increases employees motivation?

a] Yes b] Partially yes c] No d]Can’t say anything

2. Appraisal system is conducted in BHPV?

a] Annually b] Bi-annually c] Quarterly

3. Performance appraisal system doesn’t include any biasness by superior?

a] Agree b] Dis-agree

4. Performance appraisal helps to win co-operation and teamwork?

a] Agree b] Dis-agree

5. Is performance appraisal ratings were done periodically?

a] Yes b] No

6. Are you satisfied with the Performance appraisal system?

a] Yes b] No

7. Do u aware of existing performance appraisal system?

a] Yes b] No

8. what are the methods followed for performance Appraisal in BHPV?

a] Assessment method b] Psychological method
c] Ranking method d] 360 (degree) Appraisal
9. Is Performance appraisal helpful to disclose your strengths and weakness
positively?
a] Yes b] No

10. How do the employees accept the Appraisal feedback?

a] In Positive way b] In Negative way
c] Uninterested d] Neutral

11. Are the employees given any career planning/training for development after
Performance appraisal?
a] Yes b] Partially yes c] No d] Can’t say anything

12. Salary hike depends on assessment of Performance drawn from appraisal?

a] Agree b] Dis-agree c] Strongly Dis-agree

13. Appraisal system provides a scope for professional development by providing

future growth and opportunities agree?
a] Agree b] Dis-agree c] Strongly Dis-agree

14. Results of Appraisal are disclosed immediately after the process is over?
a] Agree b] Dis-agree c] Strongly Dis-agree

15. Do you agree to have a separate committee to review the Performance Appraisal
result?
a] Yes b] Partially yes c] No d] Can’t say anything

16. Is Performance Appraisal put to achieve the organization goals?

a] Yes b] Partially yes c] No d] Can’t say anything

17. Transfer, demotion, suspension and dismissal is based on Performance

Appraisal?
a] Yes b] Partially yes c] No d] Can’t say anything
18. The Performance Appraisal is helpful for improving personnel skills?
a] Yes b] Partially yes c] No d] Can’t say anything

19. Which one you thing is the best Performance Appraisal system for your
organization?
a] Performance and Potential b] Team Appraisal
c] Self Appraisal d] 360 degree Appraisal

20. Do you think performance appraisal help in assessing the training needs of the
subordinates?
a] Yes b] No c] Some times