PERFORMANCE MANAGEMENT

Management Thesis
On

Impact of performance appraisal system on productivity of

Employees of ONGC Ltd.

Course Facilitator:

Dr. R. K. Nambudiri

Submitted by:
 Anoop Kumar (08HR012)

INDEX
CHAPTER NO. TOPIC PAGE NO.
1. ACHNOWLEDGEMENT 4
2. EXECUTIVE SUMMARY 5
3. INTRODUCTION TO THE 6
INDUSTRY
4. OBJECTIVE 7
5. MAJOR PLAYER OF 8
PETROLIUM INDUSTRY
6. GLOBAL RANKING 9
7. PERFORMANCE 10
APPRAISAL
8. METHODS 11-16
9. PERFORMANCE 17-24
APPRAISAL SYSTEM ON
ONGC
10. RESEARCH 25
METHODOLOGY
11. SIGNIFICANCE OF 26-28
STUDY
12. DATA ANALYSIS 29-33
13. LIMITATION 34
14. INTERPERTATION 35-46
 15. FINDINGS 47-48
16. RECOMMENDATIONS 49-50
17. QUESTIONNAIRE 51-54
18. BIBLIOGRAPHY 55

EXECUTIVE SUMMARY

Oil and Natural Gas Corporation Limited (ONGC) is engaged in the business of exploration and
drilling of crude oil and natural gas and is the world’s second biggest exploration and production
company ONGC owns and operates more than 11000 kilometers of pipelines in India, including
nearly 3200 kilometers of sub-sea pipelines. The company contributes more than 78% of India’s
oil and gas production.

Today, ONGC is the flagship company of India; and making this possible is a dedicated team of
nearly 40,000 professionals who toil round the clock. It is this toil which amply reflects in the
performance figures and aspirations of ONGC. The company has adapted progressive policies in
scientific planning, acquisition, utilization, training and motivation of the team. At ONGC
everybody matters, every soul counts.

ONGC has a unique distinction of being a company with in-house service capabilities in all the
activity areas of exploration and production of oil & gas and related oil field services.

Needless to emphasize, this was made possible by the men & women behind the machine. Over
18,000 experienced and technically competent executives mostly scientists and engineers from
distinguished Universities / Institutions of India and abroad form the core of our manpower.
They include geologists, geophysicists, geochemists, drilling engineers, reservoir engineers,
petroleum engineers, production engineers, engineering & technical service providers, financial
and human resource experts, IT professionals and so on.

This report concentrates on the study of the performance appraisal system being practiced in
ONGC and to check its effectiveness and further to suggest and recommend any possible ways
to improve and strengthen its PMS.

INTRODUCTION TO THE INDUSTRY

The India Petroleum Industry is a case in point for exhibiting the giant leaps India has taken
after its independence towards its march to attain a self-reliant economy.

During the Independence era of 1947, the India Petroleum Industry was controlled by foreign
companies and India’s own expertise in this sector was limited. Now, after 60 years, the India
Petroleum Industry has become an important public sector undertaking with numerous skilled
personnel and updated technology that is comparable to the best in the world. The vim and the
achievement during these years is the growth of productivity in petroleum and petroleum-based
products. Even the consumption has multiplied itself nearly 30 times in the post-independence
era.

An important advancement in the petroleum industry came with the Industrial Policy Resolution,
1956 which signified the promotion of growth of industries. The ONGC originally set up as a
Directorate in 1955, was transformed into a Commission in 1956. In 1958, the Indian Refineries
Ltd., a government undertaking, came into existence. The Indian Oil Company (IOC), also a
government undertaking, was set up in 1959 with the purpose of marketing petroleum-related
products. Indian Oil Corporation Ltd. was formed in 1964 with the merger of the Indian
Refineries Ltd. and the Indian Oil Company Ltd. Presently, 17 refineries operate under the India
Petroleum Industry.

OBJECTIVE

• To know the various types of performance appraisal methods being used at ONGC Ltd.

• To know which appraisal system is being mostly used in ONGC Ltd.

• To know whether the performance appraisal system of ONGC Ltd. Increase the
productivity of employees or not .
 MAJOR PLAYERS IN PETROLEUM

• Indian Oil corporation

• ONGC
• Reliance Industries
• NTPC
• Hindustan Petroleum
• Bharat Petroleum
• TCS
• Infosys Technologies
• Wipro
• SAIL
 OVERVIEW OF ONGC LTD.

Born as a modest corporate entity within serene Himalayan settings on 14th August 1956 as
Commission, Oil and Natural Gas Corporation Limited (ONGC), has grown into a full fledged
horizontally integrated upstream petroleum company. Today, ONGC is a flagship public sector
enterprise and India’s highest profit making corporate, which has achieved the landmark since
inception, ONGC has produced more than 600 million metric tones of crude oil and supplied
more than 200 billion cubic meters of gas, thus fuelling India’s economy.

GLOBAL RANKING

➢ ONGC ranks as the Numero Uno Oil & Gas Exploration & Production (E&P) Company
in Asia, as per Platt’s 250 Global Energy Companies List for the year 2007.

➢ ONGC ranks 23rd Leading Global Energy Major amongst the “Top 250 Energy Majors
of the World in the Platt’s List” based on outstanding performance in respect of Assets,
Revenues, Profits and Return on Invested Capital (RIOC) for the year 2007.

➢ ONGC is the only Company from India in the Fortune Magazine’s list of the World’s
Most Admired Companies 2007. ONGC is 9th position in the Industry of Mining, crude
oil production.
ONGC VISION

To be a world class Oil and Gas Company integrated in energy business with dominant Indian
leadership and Global presence.

ONGC MISSION

• Dedicated to excellence by leveraging competitive advantages in R&D and technology

with involved people.
• Imbibe high standards of business ethics and organizational values.
• Abiding commitment to safety, health and environment to enrich quality of community
life.
• Foster a culture of Trust, openness and mutual concern to make a stimulating and
challenging experience for our people.
• Strive for customer delight through quality products and services.
HR VISION

"To attain organizational excellence by developing and inspiring the true potential of company’s
human capital and providing opportunities for growth, well being and enrichment".

HR MISSION

"To create a value and knowledge based organization by inculcating a culture of learning,
innovation & team working and aligning business priorities with aspiration of employees leading
to development of an empowered, responsive and competent human capital".

HR OBJECTIVES

➢ To develop and sustain core values

➢ To develop business leaders for tomorrow
➢ To provide job contentment through empowerment, accountability and responsibility
➢ To build and upgrade competencies through virtual learning, opportunities for growth
and providing challenges in the job
➢ To foster a climate of creativity, innovation and enthusiasm
➢ To enhance the quality of life of employees and their family
➢ To inculcate high understanding of 'Service' to a greater cause
 PERFORMANCE APPRAISAL

Performance appraisal can be defined as the process of evaluating the performance of an

employee & communicating the result of the evaluation to him for the purpose of rewarding &
developing the employee. According to Michael Armstrong “Performance appraisal is a formal
assessment & rating of individual by their managers at usually at annual review meeting.”
Performance can be defined as the degree of accomplishment of tasks by an employee in his job.
In some organizations it is measure of the result achieved & target accomplished whereas in
others, it is a measure of employee efforts & behavior. However most organizations use a
combination of both efforts & results. Performance appraisal is also termed as performance
review, annual review & annual appraisal.

THE APPRAISAL PROCESS

1. The first step in the appraisal performance process is the determination of standard of
performance based on the organizational objectives & job descriptions.
2. The next step of performance appraisal is the measurement of employees performance
against the pre-determined goal & standards.
3. The next step is the actual process of measurement. Performance appraisal has to be a
continuous process & feedback should be given to the employee at regular intervals.
4. The next step is the very critical step & involves communicating the result of the
appraisal to the employee concerned.
5. Once appraisal is finalized after discussing it with the employees, it have to be put
effective use.
THE APPRAISER

The appraiser is that person who access the performance of a person or an employee. In more
recent concept like 360 degree feedback, the peer/colleagues of the employee, his supplier, his
customer, & even his subordinate play a role in assessing his performance.

SELF-APPRAISAL

As has been discussed earlier self appraisal is the common practice today, with the employee
being given a role in evaluating their own performance. The employee himself is best equipped
to evaluate his performance because he understands his strengths & weaknesses the best.

SUPERVISOR

It is the responsibility of the supervisor to ensure that his subordinate perform their jobs well.
Hence the authority to evaluate the employees’ performance has traditionally been with the
supervisor.

PEERS
Peer evaluation is very sensitive area as it may lead to false & unhealthy appraisal because of
competition among peers. The organization has to reach an advanced stage of development
before it can handle peer appraisal.

CUSTOMERS

The performance of an employee has a direct & immediate impact on his customer either
internal or external. In service organization like banks & hotels customer feedback has become

the most important tool in evaluating the employee’s performance .

SUBORDINATES

The concept of subordinate evaluating the performance of his supervisor yet to gain acceptance
in most Indian companies. The Indian culture does not encourage the idea of subordinate
appraisal.

PERFORMANCE APPRAISAL METHODS

1. Management by objective or goal setting.

2. Graphic rating scale.
3. Work standard approach.
4. Essay appraisal.
5. Critical incidence method.
6. Forced choice rating method.
 7. Point allocation method.
8. Ranking method.
9. Check list.

10. Behavioral anchored rating scale.(BARS)

11. 360 degree performance appraisal.
12. Team appraisal.
13. Balanced scorecard method.

MANAGEMENT BY OBJECTIVE (MBO)

The main aspect of MBO is clear & well defined goals, a definite time span to achieve the goals,
action plan & finally, timely & constructive feedback. It is also called a goal setting approach;
MBO is more commonly used for managers & professionals.

GRAPHIC RATING SCALE

This method of appraisal requires the rater to rate the employee on factors like quantity &
quality of work, job knowledge, dependability, punctuality, attendance etc. This method is also
used for performance appraisal of employees. They check their employees daily by using this
method.
WORK STANDARD APPROACH

This method of appraisal is more suitable in a manufacturing scenario, where the goals are pre
determined work standard. These work standards can be set based on the average output of a
typical employee in the organization or by bench marking against the work standard of a
competitor in a similar business.

ESSAY APPRAISAL

In the essay appraisal method, the appraiser prepares a document describing the performance of
the employees. Questions or guidelines are provider to the appraiser based on which analyses &
describes the employees’ performance.

CRITICAL INCIDENT METHOD

In this method of performance appraisal, the appraiser makes a note of all the critical incident
that reflect the performance & behavior of the employee during the appraisal period. These are
recoded as & when they occur & can demonstrate either positive or negative traits or
performance.
FORCED CHOICE RATING METHOD

In this method the appraiser is required to assign ranks to different attributes are all seemingly
positive, but have different weights which are unknown to the appraiser. Once the employees’
attributes are ranked the human resource department applies the weights & arrives at a score
which is the final appraisal score.

POINT ALLOCATION MATHOD

In this method of appraisal, the appraiser has to allocate points to different members in his team.
He has at disposal , a specific number of points which he has to distribute among his team
members, based on their performance during the appraisal period.

RANKINNG METHOD

There are three commonly used methods of ranking namely alternation, paired comparison &
forced distribution. The first two methods are used when there are only a few employees to be
ranked, whereas forced distribution method is used in large companies which have thousands of
employees.

CHECKLIST

In this method the rater has to respond ‘yes’ or ‘no’ to a set of questions which assess the
employee’s performance & behavior. Normally weights are attached to each of these questions
based on which the final appraisal score of the employee is calculated.
BEHAVIOR ANCHORED RATING SYSTEM (BARS)

BARS concentrates on the behavioral traits demonstrated by the employees instead of his actual
performance. Some of the other methods like graphic rating scale & checklist also measure the
behavior based on the assumption that desirable behavior result in effective performance.

360 DEGREE PERFORMANCE APPRAISALS

A 360 degree appraisal system aims at a comprehensive & objective appraisal of employee
performance. In a 360 degree appraisal system the employees’ performance is evaluated by his
supervisor, his peers, his internal external customers, his internal external suppliers & his
subordinates. This system reduces the subjectivity of a traditional supervisor appraisal.

TEAM APPRAISAL

In the new economy era, where team work is essential for any venture to succeed, team appraisal
has emerged as one of the best tool for the performance management. In the team appraisal
method the individual team member evaluate their colleagues in the team & provide feedback.

BALANCED SCORECARD

The balanced scorecard as a method of measuring performance channelizes the efforts of people
to achieve organizational goals. The implementation of balanced scorecard involve formulating
a strategy & deciding what each employee needs to do to achieve the objectives based on
strategy.

PERFORMANCE APPRAISAL SYSTEM AT ONGC

Performance appraisal report is an index of an employee’s work performance over a given

period of time. It is crucial for his or her career growth as it indicates the strengths, weaknesses,
training needs, nature of job being performed and problems faced in work situation.

The objectives of the performance appraisal system at ONGC are:

• To set norms and targets of work performance, as well as, to monitor the work progress
of employees.
 • To facilitate placement of employees in accordance with their suitability for different
types of assignments.
• To provide an objective basis for determination of merit, efficiency and suitability for the
purpose of promotion.
• To identify areas requiring exposure for training and development.

The performance appraisal system seeks to evaluate:

• The work performance of an employee on the present job in relation to the expected
levels of performance, both qualitative and quantitative.
• The extent of development achieved by the employee during the period under review.
• Evaluation of behavioural attributes, attitudes and abilities.
• Evaluation of potentials for assuming higher responsibility.

The appraisal covers:

• Performance during the period from 1st April to 31st march of every year.
• All regular employees of the company.

a) Non Executives.
b) Executives
The appraisal form PAR/ACR is filled in respect of all such employees who have served for a
period of at least four months in the organization during the relevant year.
Procedure

PAR/ACR in respect of an employee is required to be assessed by levels indicated below:

➢ By the reporting officer under whom employee is working.

➢ By the reviewing officer.

➢ The reporting officer for writing PAR of an employee of class III/IV and E-0 level
category will be the executive under whose control the employee is working. The
reviewing officer will be of one grade above the grade of reviewing officer. The PAR’s
in respect of class III/IV employees duly reviewed is maintained at
Region/Institute/Headquarters group wise in the concerned establishment section/PAR
sections.

➢ The PAR in respect of E-0 to E-6 level executives is being maintained in PAR
departments at headquarters of R&P division.

➢ As regards E-7 and above all such reports which are received from
Regions/Institutes/Headquarters are maintained at Chairman-cum-managing Director’s
office. The reviewing officer will be the officer to whom the executive reports for his day
to day work. Review of the PAR will be done by the executives to whom the reporting
officer is responsible for his functions. Accepting authority will be the executive higher
than the reviewing officer at different levels depending upon the nature of the grades as
per delegation of powers in PAR rules.
• The performance appraisal reports of executives of E-6 level i.e. Deputy general
manager and above will be submitted to concern functional Director for final review
and acceptance.

• The performance appraisal reports of executives of E-5 level i.e. chief manager and
equivalent will be reviewed by the RD/ED/Nominee of the Director concerned.

• The performance appraisal of the executive upto E-4 level i.e. manager and equivalent
would be reviewed by the functional head/GM/CGM not less than E-7.
Performance Appraisal Format for Executives

I. Personal Data

This includes personal details of the individual being appraised.

II.Self Appraisal

In this section the appraisee is required to mention the tasks achieved in the appraisal
period including enabling and constraining factors. These achievements are then rated by
the individual itself and the appraiser.

III.A. Performance Appraisal

Performance appraisal is done on the basis of Key Result Areas and a certain weightage
is assigned to each. Following are the Key Result Areas:

Performance in respect to volume 40

Quality of output 30
Timeliness of jobs completed 30

The total of the score gained by the individual is noted and termed as P.
B. Potential Appraisal

Potential of the candidate is appraised on the scale of 1 to 5 keeping the existing role as
well as future positions in perspective.

Scale 1 to 5 is given for (1-poor, 2-fair, 3-good, 4-very good, 5-excellent)

Potential is appraised on the basis of following traits:

• Result oriented approach

• Willingness to accept challenges
• Diligence and reliability
• Initiative
• Professional competence
• Communication skills
• Commitment and dedication
• Personal conduct and discipline
• Leadership
• Inter personal relationship

Total of score gained by an individual in this section is again noted and termed as Q.

C. Work done for HINDI

D. Overall Grade

Total score(S) is calculated as

S=a*P+b*2*Q

Where a & b are weightages for performance and potentials. This weightage is as per the
level.

Level a b
E1 0.9 0.1
E2 0.8 0.2
E3 0.7 0.3
E4 0.6 0.4
E5 0.5 0.5
E6 0.4 0.6
The grading system

A+ 95 and above

A 85 and above but less than 95

A- 75 and above but less than 85

B+ 65 and above but less than 75

B 55 and above but less than 65

C 45 and above but less than 55

D less than 45
IV.A. Assessment by Reviewing Officer

B. Training Needs

The appraisee himself mentions the training requirements which are then remarked by
the appraiser.

C. Co- Review

V.Moderation

VI.Assessment by accepting officer

Final grade with score

VII.Communication to executive

VIII.Counseling
The final grade given by the accepting authority after detailed and due consideration to the rating
by the 1st and 2nd appraisers, will be the decisive grade of the appraisee executive. In case this
final rating is different from those of the 1st and 2nd appraiser, adequate justification must be
mentioned by the accepting authority. There must be adequate explanation by the 1 st and 2nd
appraisers and the accepting authority for any grade assigned to the appraisee. In the absence of
adequate explanation the report will be considered incomplete and returned back to the
appraisers for confirming to the directives contained in the instructions.
RESEARCH METHODOLOGY

The approach used for the study was Survey Method. For this Literature and Diagnostic Survey
were carried out:

LITERATURE SURVEY

Secondary sources were referred to get the basic culture and working pattern of ONGC. All the
required information was collected from the in-house journals, magazines, reference books,
manuals and the other related sources.

DIAGNOSTIC SURVEY

It was done with the help of a questionnaire to check the efficiency and effectiveness of the
system.

PROJECT TITLE

“Performance Appraisal System on the productivity of employees of ONGC Ltd .”

SIGNIFICANCE OF STUDY

Human Resource Development is the basis of success of any organization. HRD helps to
enhance employee’s effectiveness and helps to achieve organizational goals. Now with the
emergence of so-called “NEW ECONOMY”, the increasing role of knowledge in industry is
becoming obvious. In the emerging knowledge age, incessant learning by employees through
effective Training and Development is going to be a key to survival and growth for
organizations. Without effective Training and Development no enterprise can claim to be giving
due importance to HRD. Performance appraisal in the real sense can be carried out only when
the employees are provided with the required amount of training. In the unfolding economic
scenario it is increasingly being realized that employees are the most precious assets of any
company. Any investment in introducing performance appraisal techniques is worth only when
the above mentioned criterion is fulfilled. Every organization nowadays is using various
methods for appraising the performance of the employees so that the real potential of the human
asset can be known and utilized in the proper way. Performance appraisal not only evaluates the
work done by the employees but also tries to boost the morale and motivate them to do their
best. The methods used by the organization should be communicated to all the employees who
come under its purview. They should be satisfied with the procedure and if they are not then it
should be looked upon that what are the reasons behind it and what changes are to be brought
about. Performance appraisal has a very important aspect to it and that is development of the
employees.
 RESEARCH METHODOLOGY

RESEARCH DESIGN

The present investigation is descriptive type of study undertaken to estimate the effectiveness of
the performance appraisal system of ONGC Ltd. The present study identifies views of
employees of different levels and disciplines.

I have divided the whole sample into various groups on various criterions like age, experience,
discipline, and management level.

To do the better analysis these groups are further incised as

Age

• Age less than 40 years

• Age between 40-50 years
• Age above 50 years
• Age not provided

Experience

• Experience less than 10 years

• Experience between 10-20 years
• Experience between 20-25 years
• Experience between 25-30 years
• Experience more than 30 years
Discipline

• Finance
• Geo Sciences
• HR
• Production
• Technical and Engineering

Managerial Level

• Junior Management(E0 - E2)

• Middle Management(E3 – E4)
• Senior Management(E5 and above)
Scope of the Study
The scope of the study is limited to Dehradun.
Population of the Study
All those persons who are working in ONGC are the population of this study.
Sample Size
The sample size is 100.

METHOD OF DATA COLLECTION

PRIMARY DATA
The primary data to be selected was based upon the response of the respondents to the
questionnaire designed. The questionnaire consists of closed ended questions.

A part of Questionnaire was targeted to know the personal details of the respondents. Second
part consists of closed ended questions on the scale of 1 to 5. Third part comprised of questions
to be answered in Yes or No.

SECONDARY DATA
The secondary data was collected by referring through manuals, journals and intra net, web sites,
and the final data was analyzed systematically to achieve the desired result.
Tools of Data Analysis
The collected data has been analyzed keeping in view the objectives of the study. The statistical
tool used is Chi-square test in this study.
.

Collected data at a glance

Significant variables YES NO

Individual feedback should be provided
after the appraisal

The management helps provide an

atmosphere where all are encouraged foe
teamwork & comradeship

My superior appreciates me when I do a

good job

My appraiser knows my personality

,talents & potentials

Rather has the ability & courage to give

constructive criticism in a friendly, firm
& positive manner

The employees are provided with the

opportunity to respond to the feedback of
the appraisal

Are you rated on your competencies-

Knowledge, skills& attributes

There should be some incentives based on

the individual & group performance

Are you provided with the genuine

feedback

Do you find appraisal counseling

beneficial for future developments

Do you think management take a serious

note of training requirements shown in the
appraisal

Do you want the system of 360 degree

appraisal in which you can appraise your
superior
 CHI-SQUARE

Attribute Yes No Total

Feedback 46 3 49

Atmosphere 49 0 49

Appraisal 21 28 49
counseling

Incentives 34 15 49

360 degree 8 41 49
appraisal system

Total 158 87 245

O(OBSERVED) E(EXPECTED) O-E (O-E)2 (O-E)2/E

46 31.6 14.4 207.36 6.56

49 31.6 17.4 302.76 9.58
21 31.6 -10.6 112.36 3.55
34 31.6 2.4 5.76 0.18
8 31.6 -23.6 555.96 17.625
3 17.4 -14,4 207.36 11.917
0 17.4 -17.4 302.76 17.4
28 17.4 -10.6 112.36 121.4
15 17.4 -2.4 5.76 .33
41 17.4 -23.6 556.96 31.99
Total (CH1) 220.53
Degree of freedom = (row-1)(column-1)

= (5-1)*(2-1)

= 4*1

=4

Row = 5

Column = 2

Significance = 0.05

Table value = 9.49

Chi- square = 220.53

Variables:

• Performance appraisal

• Productivity

HO: There is no relation between performance appraisal & productivity of employees.

H1: Performance appraisal system in ONGC affects the productivity of employees.

Value is accepted.
LIMITATIONS

➢ Due to time constraint and hectic schedule of ONGC employees some time I found
difficulty in interaction with employees.

➢ Organization being very large an effort was made to do the tasks effectively and
efficiently but more detailed study could have done by having large sample size.

➢ Employees delayed in submitting the feedback form so it effected the time in compiling
and analyzing data for findings and suggestions.

➢ Many questions were responded as “Cannot Say” due to the subjectivity of the topic and
some information was not revealed due to certain reasons like being confidential in
nature.
(Response in YES or NO only)

Q1.Individual feedback should be provided after the appraisal.

Responses

YES - 87%

NO - 13%

As of now the system of providing the appraisal feedback to every individual is not there in
ONGC. However 87% of the respondents want that there should be such system. The general
opinion of the employees is that the basic purpose of the appraisal process is not fulfilled until or
unless one gets to know how he has performed. Ultimately the aim of the performance appraisal
is to develop the individual through proper monitoring and feedback system.

13% of the respondents feel that the individual feedback should not be provided. They are still of
the opinion that the performance appraisal should be treated as confidential report only. They
consider that the individual feedback system will give rise to discrepancies.
Q.2 The management helps provide an atmosphere where all are encouraged for
teamwork and comradeship.

Responses

YES - 69%

NO - 31%

Majority of the respondents feel that the management helps provide an atmosphere where all are
encouraged for teamwork and comradeship. This thing is necessary because you can expect the
performance only when you provide the suitable atmosphere for it. It has been proved that the

office atmosphere plays a critical role in the overall performance of the individuals and in turn
of the organisation. Providing congenial environment fuel up the performance. Through personal
interaction I came to know the kind of environment prevailing in the organisation. Though
management is not putting much efforts to do so, it is there in the system. People help out each
other without any expectations.

However still 31% of respondents feel that the management doesn’t help providing an
atmosphere where everybody is encouraged for teamwork. What I feel is that the teamwork is
only possible when everybody in the team or a group is willing to put in effort and this thing
can’t be enforced upon somebody. So I would suggest to these respondents to take the plunge
and rest will automatically follow and comradeship will develop.
Q.3 My Superior appreciates me when I do a good job.

Responses

YES - 86%

NO - 14%
86% of the respondents responded as YES. This thing may appear to be very small but the fact is
that this thing helps an individual to give its best. A small token of appreciation or just a pat on
the back is enough to keep that individual motivated for the next week atleast. Praise is such a

thing that can make the king to work provided that should be genuine one. There is a difference
between praise and flattery. And if this difference is not clearly understood it can prove fatal.

But exceptions are always there so here also 14% of the respondents don’t feel the same. They
don’t consider that their superiors appreciates them when they do a good job. Some of the
respondents are of the opinion that the superior seldom appreciates their work and if at all they
appreciates, it is not genuine one.

Q.4 My appraiser knows my personality, talents and potentials.

Responses

YES - 87%

NO - 13%

Majority of the respondents agree to the point that the appraiser knows their personality, talents
and potentials. Appraiser should be aware about these things of his subordinates whom he has to
appraise. These things actually help both the parties. Expecting certain level of performance
without knowing the caliber of the individual is not justified at all. Once you are aware of the
personality and talents of an individual, you can take work accordingly.

Only 13% of the respondents feel that the appraisers are not aware of their talents and potentials.
Their say is that the appraisers hardly put any efforts to know the potential.

Q.5 Rater has the ability and courage to give constructive criticism in a friendly, firm and
positive manner.

Responses

YES - 67%

NO - 33%

Majority of the respondents feel that the raters have the ability and courage to give constructive
criticism in a friendly, firm and positive manner. At times it is necessary to scold and criticize
also but that should be done in such a manner that it should not discourage the individual.
Therefore constructive criticism is of paramount importance.

However there is considerably good percentage of respondents who feel that their raters are
unable to do so. Some of the respondents are of the opinion that the raters hardly know how to
give feedback in positive manner.

Q.6 The employees are provided with the opportunity to respond to the feedback of the
appraisal.

Responses

YES - 37%

NO - 63%

Majority of the respondents don’t agree with the above statement. According to them they are
not provided with the opportunity to respond to the appraisal feedback. However 37%
respondents says that they can respond to the feedback.

As such there is no procedure to respond to the appraisal result in the current performance
appraisal system of ONGC. The reason being that the result itself is not shared with the
individual appraised. Why some people then think that they do get the opportunity to respond to
the appraisal result? This is because the system in ONGC is such that in case an individual gets
very poor rating or very excellent rating then individual counseling is provisioned to confirm the
ratings and the reason behind such ratings.
Q.7 Are you rated on your competencies- Knowledge, skills, and attributes?

Responses

YES - 72%

NO - 28%

72% respondents believe that they are rated on their competencies- knowledge, skills and
attributes. However 28% deny the same. In the appraisal sheet itself there is one section called
potential appraisal. In this section the appraisee is rated on the various traits keeping the existing
role as well as future positions in perspective. One of the traits is Professional Competance,
which I think covers knowledge as well as skill part of an individual.

Q.8 There should be some incentives based on the individual and group performance?

Responses

YES - 88%

NO - 12%
Majority of the respondents want that there should be some incentives based on the individual
and group performances. They agree to the point that a star performer and a low performer of
same managerial level is getting paid exactly the same. This sometimes acts as a demotivating
factor for the star performer as well. A slight differentiation should be there for the performer
and non performer. Further incentives on group performance increases the group cohesiveness
and boost up the integrity.

Q.9 Are you provided with the genuine feedbacks?

Responses

YES - 27%

NO - 73%

T
he chart clearly shows the response of the respondents. Majority feels that they are not given
genuine feedbacks. On the basis of personal interaction I can say that people are not satisfied
with the kind of feedbacks they get. They say that the appraisal result is confidential but apart
from the appraisal feedback, otherwise also they are not provided with the routine feedback on
their performance. They are of the opinion that if they are provided with the genuine feedback
then they can improve their performance manifolds.

But there are 27% people who think they are provided with the genuine feedback. In that case I
would say that they are lucky to have those sort of superiors.

Q.10 Do you find appraisal counseling beneficial for future developments?

Responses

YES - 77%

NO - 23%

Again the majority is in the favour of the statement. Most of the respondents find appraisal
counseling beneficial for the future developments. But here I disagree. Not that I don’t consider
that the counselings are beneficial. No doubt they are beneficial for the future development,
rather they should be. But the thing is that the system of providing counseling in ONGC is very
rare phenomenon. I have already mentioned that it is provided only and only if the appraisal
result falls in extreme limits either very low or very high ratings. So my point is how come
majority of the respondents have experience the counseling sessions. I have come across the
people who said that they don’t know about it as they haven’t experience it and they have left
this question unanswered.

.11 Do you think management take a serious note of training requirements shown in the
appraisal?

Responses

YES - 38%

NO - 62%
38% respondents feel that the management takes a serious note of training requirements shown
in the appraisal. At the same time 62% respondents are of the opinion that the management
doesn’t pay any heed to the training requirements shown in the appraisal sheet.

In performance appraisal sheet every individual has to mention the training requirements which
is then assessed by the reviewing officer and then by accepting officer. Once it is over the
requirements are sent to the Academy.

In my opinion if this thing is mentioned in the performance sheet then it should be taken care of
properly. But the respondents say that it is mere formality. I met one employee having 20 years
of experience in ONGC who said that he had been filling the requirements every year but in the
span of more than 20 years he happened to get the training twice only.

Q.12 Do you want the system of 360◦ degree appraisal in which you can appraise your
superior?

Responses

YES - 73%

NO - 27%
In 360o feedback system the performance information is collected from multiple parties
including one’s subordinates, peers, supervisors and customers or clients. As of now in ONGC
only superior appraise the subordinate.

Majority of the respondents want that the 360 degree appraisal system should be introduced. In
their opinion this system will reveal the truth about the managers. However 27% respondents
don’t want this system to be adopted. They think that this system will give rise to disagreements
and one may criticize the boss freely without any basis.

MAJOR FINDINGS

• Performance Appraisal System in ONGC is not transparent.

• Appraisers are usually unbiased.
• Employees are not able to know their actual position after the appraisal.
• The management is serious about the appraisal process.
• The appraisal process provides them an opportunity for development and growth.
• Relations with the superior affect the evaluation.
• Greater weightage is given to the recent performances.
• There are fixed standards to evaluate the performance but those are not clear due to the
subjectivity of the topic.
• Raters know how to conduct the appraisal.
• Raters are not that much concerned about the varied needs of people at levels of
experience and background.
• Superior-subordinate relations are good. Superior helps them set and achieve meaningful
goals. This makes the environment amiable and congenial.
• Performance appraisal sheet is lucid and easy to understand and fill.
• The parameters used to appraise the potential are ample.
• The system being not so transparent, employees are unable to identify the performance
gaps in order to prepare for the future.
• Individual feedback is not provided.

• The management helps provide an atmosphere where all are encouraged for comradeship
and teamwork.
• Appreciation is provided for the good job done.
• The appraisers are generally aware about their subordinates and their talents and
potential.
• Most of the raters have the ability to give constructive criticism in a friendly, firm and
positive manner.
• Employees don’t have the opportunity to respond to the appraisal result.
• Employees are being rated on their knowledge and skills.
• Majority of people want that there should be some incentives based on performance.
• Employees are not provided with the genuine feedback.
• Appraisal counseling is considered beneficial for future developments.
• Management doesn’t bother much about the training requirements mentioned in the
appraisal sheet.
• Most of the employees want that 360o feedback system should be introduced.
RECOMMENDATIONS

The performance appraisal system of ONGC is of good quality. With the introduction of new e-
PAR system, the PMS system is refined further. On the basis of the analysis of responses and
findings I have reached to some conclusions. So taking them into consideration few steps may
be considered to strengthen the performance appraisal system.

➢ The system should be made more transparent. This can be achieved by creating
awareness among the employees regarding each and every aspect of the appraisal
process. They should be made aware about the standards and the criterions for
evaluation. Further they should be shown the appraisal result.

➢ The appraiser and appraisee should sit together and then the appraiser should rate the
appraisee for his performance and should state the reason for the same. This will increase
the level of transparency and the employee will feel satisfied as he will have an
opportunity to respond at that very moment itself.

➢ The genuine feedback should be provided to the employees. So that they may be in a
position to know where they stand exactly. So that they can identify their performance
gaps and prepare accordingly for the future.
➢ The general belief among employees is that the relations with the superior affect the
evaluation process. This is not good as this creates a sense of favoritism in the
organization. No doubt one should be in pleasing terms with the superior but that should
not affect the evaluation at all. For this the raters should always consider the performance
as the only measure for the evaluation.

➢ The raters should take note of the critical performance incidents of an individual so that
at the end of the year it should not be that only the recent performances are given more
weightage.

➢ Raters should consider the specific requirements of the people to do the job. They should
help them out by providing necessary skill set to do the job more efficiently. They
should set the goals as per the potential and caliber of the individual.

➢ Employees should have the opportunity to respond to the appraisal result. For this
individual feedback should be provided.

➢ Management should take serious note of the training requirements shown by the
individual in the appraisal sheet. Training plays a vital role in the development of an
individual and helps improve the performance.
➢ Some incentives should be introduced on the performances basis. This thing creates a
sense of healthy competition among employees which boost up the growth of the
individual as well as the organization.
Answer the following questions in Yes or No

Q1. Individual feedback should be provided after the appraisal.

➢ Yes No

Q1. The management helps provide an atmosphere where all are encouraged for teamwork and
comradeship.

➢ Yes No

Q1.My Superior appreciates me when I do a good job.

➢ Yes No

Q1. My appraiser knows my personality, talents and potentials.

➢ Yes No

Q1. Rater has the ability and courage to give constructive criticism in a friendly, firm and positive
manner.

➢ Yes No
Q.5 The employees are provided with the opportunity to respond to the feedback of the appraisal.

➢ Yes No

Q1. Are you rated on your competencies- Knowledge, skills, and attributes?

➢ Yes No

Q1. There should be some incentives based on the individual and group performance?

➢ Yes No

Q1. Are you provided with the genuine feedbacks?

➢ Yes No

Q1. Do you find appraisal counseling beneficial for future developments?

➢ Yes No

Q1. Do you think management take a serious note of training requirements shown in the appraisal?

➢ Yes No

Q1.Do you want the system of 360◦ degree appraisal in which you can appraise your superior?
 ➢ Yes No

Q12. Do the variables in appraisal form cover your actual performance, contribution to the
organization and potential for improvement?
Q13. Do you want more open-ended questions in the appraisal form?
Q14. Do you think your appraisal form reflects your true performance?
Q15. Do you think you have sufficient control over your work environment?
Q16. Do you think that your appraisal can be more genuine if your r

BIBLIOGRAPHY

• Ongc.com

• Internet

http://business.mapsofindia.com/india-petroleum-industry/

http://www.ongcindia.com/