A STUDY REPORT ON PERFORMANCE MANAGEMENT SYSTEM IN Orissa Hydro Power Corporation, Bhubaneswar

Submitted as a partial fulfillment of the award of P.G Degree In Personnel Management and industrial Relations. (2009-11)
Under the guidance of Manoj Ku. Mohanty, DM (HRD), OHPC, Bhubaneswar Under the Guidance of Prof. S.K. Tripathy Dept. of PM&IR

Submitted By
Monalisha Nayak P.M & I.R (IVth sem.) Roll No. - 11503V092012

P.G. DEPARTMENT OF P.M & I.R Utkal University, VaniVihar, Bhubaneswar

P.G.Department of Personnel Management And Industrial Relation Utkal University, Bhubaneswar Orissa, Pin-751004

C E R T I F I C A T E
It is certified that this understudy program report entitled A Study On
Performance Management System at Orissa Hydro Power Corporation , Bhubaneswar, carried out in partial fulfillment of the requirement for the master degree in Personnel Management & Industrial Relation is a result of genuine research work carried out by MONALISHA
NAYAK,

a student of Part-II, P.M &

I.R dept. under the guidance of Prof. S.K. Tripathy, P.G.Deptt. of P.M.I.R, Utkal University. No part of this work has been submitted for any other degree or published in any other form.

BHUBANESWAR Dated.

( PROF. B.N.MISHRA.)
HOD, DEPT. OF PM&IR, UTKAL UNIVERSITY, VANINIHAR, BHUBANESWAR,

P.G.Department of Personnel Management And Industrial Relation Utkal University, Bhubaneswar Orissa, Pin-751004

C E R T I F I C A T E
This is certified that this report entitled A Study On Performance Management System at OHPC, VaniVihar,Bhubaneswar embodies the result of dissertation work carried out by MONALISHA
NAYAK

, student of P.G. in Personnel

Management & Industrial Relations under my guidance. She has completed this report based upon the training program at OHPC. No part of this report has been submitted for any other degree or published in any other form.

BHUBANESWAR Dated.

( PROF. S.K. TRIPATHY)

P.G. DEPT. OF PM&IR, UTKAL UNIVERSITY, VANINIHAR, BHUBANESWAR,

D E C L AR A T I O N

I Monalisha Nayak declare that this piece of dissertation report entitled A Study Report On Organizational Effectiveness Through Performance Management System at OHPC, submitted by me to the Department of Personnel Management & Industrial Relations, Utkal University, Vanivihar, is of my own and neither submitted to any other institution or university nor published at any time before.

( MONALISHA NAYAK ) EXAM ROLL NO:-012 P.G DPT. OF P.M & I.R UTKAL UNIVERSITY, BHUBANESWAR, ORISSA

ACKNOWLEDGEMENT

It is my proud privilege to express my deep sense of gratitude to Prof.

B.N.Mishra, head of the department of Personnel Management & Industrial Relations, Utkal University, Vanivihar, Bhubaneswar for his wise counsel and inspiration to undertake the dissertation work at OHPC, Vanivihar, Bhubaneswar for the partial fulfillment of the course in M-PM&IR.

It is my proud opportunity to express my gratefulness to my guide

Prof.

S.K. Tripathy whose guidance, continuous encouragement, inspiration & profound personal involvement at every stage of my project worked to make it successful.

Also my sincere thanks to the entire faculty and other staff of my

department for their help & co-ordination to me.

I specially want to pay my heartiest gratitude to Mr S.C. Jena, AGM, HRD,

OHPC for allowing me to do the project in the organization & also for rendering his valuable guidance & advice.

I also express my deep sense of appreciation to Mr. Manoj Mohanty

Deputy Manager (HRD), OHPC, Bhubaneswar for his special guidance, enthusiastic assistance & valuable suggestions to bring completeness to my project work at the organization. I also express my heartfelt thanks to Mr. Sumit Shankar Kundu, Assistant Manager (HRD) for guiding me in my entire dissertation work.

My sincere thanks also goes to all the staff & executive staff of HRD dept.
of OHPC, for their kind co-operation & help in data collection and survey work. ( MONALISHA NAYAK ) EXAM ROLL NO:-012 P.G DPT. OF P.M & I.R UTKAL UNIVERSITY, BHUBANESWAR, ORISSA

CONTENTS
CHAPTER Chapter-I Chapter-II TOPIC Introduction Theoretical Framework of Performance Management System Chapter-III Organizational Profile of OHPC Chapter-IV Performance Management System at OHPC Chapter-V Chapter VI Chapter-VII Data Analysis Findings & Suggestions Conclusion Annexure Bibliography PAGE NO.

CHAPTER-I INTRODUCTION

The word MANAGEMENT embraces man all the time.

Peter F. Drucker Business has always been competitive. Yet the kind of fierce competition being witnessed now has not been witnessed before. Gone are the days of monopoly and with the advent of consumerism more and more corporate houses are beginning to realize that the ultimate competitive advantages of any business over it rivals will be provided by the people. Technology is no longer a monopoly nor is availability of money. But what may be a monopoly would be the people associated with any business organization. The competitors can duplicate ones business strategy but not their people. Ultimately the survival and prosperity of any organization would depend upon its ability to keep its human resources update and in tune with the realities of the fast changing business scene. To remain competitive, industrial personnel have to change their attitude towards work and perception regarding their organizational culture. Organization must realize that people are the ultimate competitive advantage and should understand the importance of human resource. Actually speaking effective utilization of all resources depends on the utilization of human resources. This is the essence of Human Resource Development. Effective utilization of all resources must be evaluated periodically for which a performance management system is indispensable in the human resource development. In the context of global approach to HRM, skilled people become only sustainable competitive advantage. Such a sustainable competitive advantage must be determined from time to time for which an continuous and ongoing performance management system is essential. Since every organization is made up of people, hiring their services, developing their skills, motivating them to high level of commitment to the organization are essential to achieve organizational objectives. Therefore, getting and keeping good people is the first priority for the success of any organization. Since organization exists to achieve goals through unified efforts, the degree of success depends on employees reaching their individual goals

through organizational goal is an important for organizational effectives. The organizational goal is therefore is a significant part of HRM. That mechanism is known as performance management, which plays a vital role in dealing with human resource management problems. In India, appraisal system, by and large, still remains conventional in its approach. Despite the multiple techniques and programs, the employees are not still systematically understood it. Moreover, the managerial responsibilities and problems are increasing day by along with the changing times due to the change in the attitude, values (social, economic, political) in the society as a whole. These factors to a great extent influence the worker of an organization either in contribution either in contributing satisfaction or dissatisfaction in work. Therefore some system is required to know, to what extent it has been successful in realizing the organizational goal, at the same time the individual comes to know his relative worth in terms of his performance. In this regard, it became necessary to examine the relevance of the existing performance system of an organization and to suggest how better people can be managed to fulfill the organization. IMPORTANCE OF STUDY Since the beginning of industrial revolution and setting up of personnel departments to cater to the various needs of the organizational, the personnel practices of the organizations have undergone various changes. Significant changes in our society brought about by technological advancement, social alternations; economic and political influence have further affected the personnel or human resource management scenario. To cope with these changes it is essential for organization to have right kind of man at right time on the job. A proper and systematic performance management system in any organization is essential as it is an add-up in creating and maintaining a satisfactory level of performance by employees in their jobs. It highlights needs and opportunities for growth and development of the person; it helps in taking decision regarding promotions, transfers, and pay increase. Performance management plays an important role in organization strategy that of assuring consistent behaviors. It is means for knowing if an employee behavior is consistent with the overall strategic focus. It is also a mechanism to reinforce the values and culture of the organization.

We are on the road to integrating our self with market driven economy internationally. So it becomes almost a necessary precondition for not only maintaining but also developing our national economy further. Therefore with change in technology, to integrate our economy to global scale the human resource is called upon to manage the advanced technological inputs and other resources towards ensuring growth in industry, state or nation. To win the active participation of employees and obtain the optimum resources, all industries should bear in mind that any industry which tries to delink the growth of an individual from the growth of the industry can not sustain the growth, hence linking growth of individual to the growth of the industry will not only sustain growth but will succeed in achieving higher growth. It is imperative for an organization to concentrate towards managing the performance of its personnel and developing its human resources to survive. Hence performance management becomes a prime concern of every leading organization. Therefore a modern scientific and systematic performance management system focuses on improving performance through continuous and ongoing feedback and guidance from reporting officer. It addresses the growth and career development of employees through identification of strengths and weaknesses of employees, which leads to better utilization and development of talents. Performance management system also serves the purpose of developing better superior-subordinate relationship based on trust and mutuality. The most important aspect of performance management is that it is an integrated system where both vertical and horizontal integration is well addressed. Vertical integration is achieved by aligning individual and team objectives with business strategy. Whereas horizontal integration is achieved by aligning performance management strategies with other HRD strategies specifically focusing on competency, reward, performance based culture, team working, career growth and development etc. Thus performance management has tremendous impact on organizational effectiveness as it addresses the competency and capability of the people of the organization.

OBJECTIVE OF THE STUDY The very objective of this dissertation work is to study the existing performance management system in OHPC and its impact on the effectiveness of the organization. However the scope of the study is concentrated upon the following points. To have a brief insight into the existing performance management of OHPC. To critically access the appropriateness of the existing performance management system and the strengths and weakness in it. To access the relative contribution of performance management system in the accomplishment of organizational goals. To highlights the perception of appraisers and appraises relating to the existing Performance management system. Examine the necessities for change in the existing pattern of performance management. To find out the reasons of success or failure of performance management in OHPC. To recommend necessary change/ modification for making the performance management system more objective as well as effective for fulfillment of organizational goals. HYPOTHESIS: The formulation of usable hypothesis is of central importance. The entire study rests upon the potential significance of the hypothesis. about a population or equivalently about the probability A statistical distribution hypothesis is some assumption or statement, which may or may not be true, characterizing the given population, which we want to test on the basis of the evidence from a random sample.

Here the emphasis given to the criterion that a hypothesis should be related to a body of theory. It is also important to anticipate the verification problem. It should be borne in the mind that the acceptance of a statistical hypothesis is due to insufficient evidence provided by the sample to reject it and doesnt necessary imply that it is true.

Here the researcher made an attempt to find whether the performance management system was affecting the overall performance of the organization. So the null hypothesis taken for this study is: The overall performance of OHPC is independent of whether or not the Performance Management System is formal. To test this hypothesis the researcher used the Chi-Square test for independence of attributes. The hypothesis is proved in chapter-v. SCOPE OF THE STUDY Organization is a social world in miniature. The association of various persons, workers, supervisors and management creates relationships. One of the most important roles of a manager or a supervisor is to motivate encourage, build, train, reinforce and modify behaviors of the subordinates regularly does this. As concerned, the scope of the study covers the system of performance management system followed in OHPC. This study includes the executives and non-executives of HR department of OHPC. I during my study have collected information about the origin and the history of OHPC. I have also studied various aspects of HR administration of OHPC. METHODOLOGY It refers to the methods adopted to reach at a conclusion. a) Data Collection Data are collected from both the sources, primary and secondary. Primary Source

The data collected by directly observing employees and asking questions are called primary data. For the collection of primary data various questionnaires ware prepared depending on the category of personnel involved, which were to be filled by the respondents. For administering the questionnaires the researcher was to visit OHPC corporate office, Bhubaneswar. Secondary Sources Secondary data was collected from published and non-published sources. Published sources included magazines, bulletins, pamphlets etc. non-published sources included official files and records, booklets, quarterly reports, annual reports, journals and the records of the company were also used. Also unpublished project reports of previous year were used to understand the meaning of the study properly. b) Selection of respondents Only one type of questionnaire was prepared for the completion of the study. As this study is carried out in HRD dept. of OHPC, the respondents are executives. They were asked about the nature of the current PMS in their organization, their perception about the performance management system of OHPC and the effectiveness of their performance management system. They are given short multi choice questions to give the correct data and their free opinions concerning PMS. c) Method of sampling For collection of primary data random sampling and survey method was used. Employees of various departments are contracted randomly as and where available. The sample consists of 20 respondents from HRD department of OHPC, Bhubaneswar. d) Data processing and analysis The data were processed and analyzed manually. The opinions of the respondents were ascertained by percentage analysis only. PLAN OF THE STUDY The entire study and the data collected are presented in six different chapters for systematic presentation analysis. Chapter-I:It is the introductory one depicting meaning and concept of performance management, highlights the significance, objectives, scope of

the study, methodology adopted during the research work, the plan of the study and the limitations found during the study. Chapter-II: Deals with conceptual analysis of performance management system and literature reviews. Chapter-III: Give pictures of the organization, its historical background, manpower position, organizational structure and departments. Chapter-IV: Deals with performance management system followed by OHPC. Chapter-V: It deals with opinion survey of executives on performance management system. It shows the tabulation of data collected through primary sources as well as their calculation, interpretation, and analysis. Hypothesis testing is also done in this chapter. Chapter-VI: It deals with the concluding part, which deals with the summary of the whole research work and suggestion for the improvement of its performance management system. And towards the end the annexure is there which shows the questionnaires and bibliography. LIMITATION OF THE STUDY 1. A major constraint of this study is time factor. 4 weeks is a very small span of time to know about the performance management of an organization thoroughly. 2. Un-willingness on the part of the executives is also a major barrier in collecting information. Collecting information from the respondents against their fear of being exposed was a tough and critical job. 3. Hesitating attitude and lack of support from the executives of HRD wing of OHPC. 4. As most of the executives of the company did not have enough time to have a satisfactory and result oriented discussion with the researcher so as make his/her study more meaningful. 5. Lastly, certain information were not made available to the researcher on the ground that they were confidential. This created some hindrances in portraying the true picture of the company. Despite all these limitation the efforts are made to correct the necessary data and responses to make the study more reliable and scientific.

CHAPTER-III THERORETICAL FRAMEWORK

If you're not measuring talent and monitoring performance you can't improve profit per employee.

PERFORMANCE MANAGEMENT SYSTEM

The current status of todays business environment require organization to be fast, focused and adaptable in order to thrive. Booming economy has created the buyers market. A successful organization is one that continually improves and adapts to the changing environment by rapidly creating and refining the capabilities required for change and success. The success of an organization is not just a factor of frequent introduction of new products or use of 1 st class technology alone. Organizations have realized that they must also derive competitive advantage from the effective management of their people. The growth of organizations and their people are comprehensively linked and so the organizations have started focusing on the development of their people in order to facilitate the organization to grow. People is that resource of organization whose potential is unlimited and enormous. Unlike other resources it is likely to be nourished, focused and developed in a continuous way. Their development ensures competency, dynamism, motivation and effectiveness to individual, group and organization. Human Resource Development in the organizational context is a process by which the employees of organization are helped in a continuous planned way to acquire or sharpen capabilities required to perform various functions associated with their present or expected future roles. HRD is a process, not merely a set of mechanisms and techniques. The mechanics and techniques such as performance management, counseling, training and organizational development interventions are used to initiate, facilitates and promote this in a continuous process. Because the process has no limit, the mechanisms may need to be examined periodically to see whether they are promoting or hindering the process. Young professionals today are driven to achieve great heights and want to make it faster than ever before. They also have the desire and drive to be the best in the entire industry. Performance feedback and prediction play important roles in all human resource management decisions.

Transformation

Performance

Appraisal

To

Performance

Management System:
Performance appraisals, performance reviews, appraisal forms, whatever you want to call them, let's call them gone. As a stand-alone, annual assault, a performance appraisal is universally disliked and avoided. Traditionally performance appraisals have been used as a tool to access employees performance. Later organizations graduated from performance appraisal to performance management. The internationalization of human resources introduces cultural differences regarding job design, performance expectation and role of performance feedback. In the modern times, the role of a leader in an organization is to inspire and manage performance. Now-a-days people in one organization dont want to hear that they were less than perfect last year. Managers dont want to face the arguments and diminished morale that can result from the performance appraisal process. How many supervisors feel their time is well-spent professionally to document and provide proof to support their feedback - all year long? Plus, the most important outputs for the performance appraisal, from each person's job, may not be defined or measurable in your current work system. So it will be effective if organization make the appraisal system one step harder to manage and tie the employee's salary increase to their numeric rating. If the true goal of the performance appraisal is employee development and organizational improvement, consider moving to a performance management system. Place the focus on what is really wanted to be created in your organization - performance management and development. Traditional performance review system produces cynicism and skepticism when the management tries to unveil its latest employee involvement programs. The focus of performance management system is progress and success towards Employee Development and organizational improvement & goal achievement. The goal of performance is to achieve the company mission and vision. Almost no one performs, for the organization, however, if his or her own mission and vision are not accomplished as well.

Performance appraisal refers to all formal procedures used to evaluate the contributions and potentials of employees. It is systematic and periodic evaluation or rating of an employees performance in his existing job and on his potentialities for taking up greater responsibilities. P.A was traditionally used as a mechanism of controlling employees through salary administration, reward administration, promotion and disciplinary action. Performance management became popular as a total quality management programs are emphasized using all of the management tools including performance appraisal to ensure achievement of performance goals. Tools such as reward system, job design, leadership and training ware placed along with performance appraisal as a part of comprehensive approach to manage performance. Performance management system is a strategic and integrated approach to deliver sustained success to organization by improving the performance of the people who work with them also developing the capabilities of the team and individual performers. It is the whole work system that begins when a job is defined as needed. To bring performance orientation, organizations should focus on PMS than on the PA systems. This is where the PMS becomes the need of the hour especially for those organizations, which want to create and sustain performance culture. The essential reason for shifting to performance management systems is to drive performance among individuals across organizations and transform them to performance-oriented organizations.

Meaning And Definition Of Performance Management System:

Performance management system is the logical process by which an organization involves its employees, individuals and members of a group in improving organizational effectiveness in the accomplishment of agency mission and goal. Performance management system is the process that firmly focuses on achieving the results and accomplishing the goal of the organization. Performance management sounds a wake-up call to employees and managers to

improve their performance continuously and remove barriers for success. Organizations intending to carve an edge in the marketplace must develop and deploy effective Performance management system that motivate and stimulate the employees to do the right things and do them right. The below figure shows how the companys mission is achieved through the continuous development of human resources through ongoing performance management system.

Susan Heathfield, a Management Consultant, defines Performance management as: The processes of creating a work environment or setting in which people are enabled to perform to the best of their abilities. Performance management is a whole work system that begins when a job is defined as needed. It ends when an employee leaves your organization. According to this definition, PMS involves creating work environments for employees success rather than setting a tight a tight control system as many managers would believe. Its also true that PMS is an accountability system. Patricia Davis and Robert Rogers, two performance management specialists, say that a PMS shows everyone from senior executives to front line employees what business results they are accountable for and sets expectations for how they should go about achieving results. According to them to have a efficient PMS, organizational leaders, particularly senior executives, have to define the

organizations priorities and clearly communicate those to all organizational members. The function of strategic priorities is to inform everyone in the organization what are the action-oriented targets on which the organization must focus and move towards. From the above two definitions we can conclude that a PMS requires a clear definition of the organizational vision, which is communicated to all members of organization in the context of a work environment where everyone knows what is expected in terms of performance , and people are enabled to perform to their best. From this perspective PMS is more of a motivational tool than a control mechanism. According to T.V. Rao, Performance management system (PMS) is the heart of any " people management " process in organization. Organizations exist to perform. If people do not perform organizations don't survive. If people perform at their peak level organization can compete and create waves. According to him Performance management systems if properly designed and implemented can change the course of growth and pace of impact of organizations. In the past organizations as well as the HR function have wasted a lot of time by wrongly focusing on performance appraisals rather than performance management. According to him PMS involves enhancing performance of: Individuals Dyads Teams and SBUs Entire Organization

To T.V. Rao Performance Management means

Identifying the parameters of performance and stating them very clearly Setting performance standards Planning in participative ways where appropriate, performance of all constituents

Identifying competencies and competency gaps that contribute/hinder to performance Planning performance development activities Creating ownership Recognizing and promoting performance culture A Performance Management System in which employee performance can

be directed, monitored, and refined with SMART objectives for the organization and the individual which have been clearly communicated and agreed is essential to any organization or business that aims for continuous improvement. SMART Objectives stands for :

Specific Measurable Appropriate Relevant Timed

Performance management is the process of creating a work environment or setting in which people are enabled to perform to the best of their abilities. Performance management is a whole work system that begins when a job is defined as needed. It ends when an employee leaves your organization. Many writers and consultants are using the term "performance management" as a substitute for the traditional appraisal system. and includes performance appraisal. The goal of performance is to achieve the company mission and vision. Almost no one performs, for the organization, however, if his or her own mission and vision are not accomplished as well. As Fred Nickols, Senior Consultant with the Distance Learning Company, says, "The blunt truth is that, if they have any work objectives at all, most people set their own. This is the era of knowledge work and the knowledge worker " Many so-called "bosses" are in no position to set work objectives, to monitor their accomplishment, or to supervise their pursuit. The work, especially at the task level, is in the hands and the heads of the workers. To be sure, a manager could formulate goals and objectives having to do with improvement in work processes and the like, but if these must be left to But in careful usage, in this broader work system context performance management is the larger domain

the workers to realize, who needs the manager? An even better question is "Who needs work objectives?" An effective performance management system sets new employees up to succeed, so they can help your organization succeed. An effective performance management system provides enough guidance so people understand what is expected of them. It provides enough flexibility and wiggle room so that individual creativity and strengths are nurtured. It provides enough control so that people understand what the organization is trying to accomplish. The task of management in this new world of work is to enable and elicit employee contributions of value to the organization. To continue with a system designed to exact and enforce compliance is folly." Objectives Of Performance Management System : To provide a framework for systematic planning of Performance Objectives at the beginning of the year. To accomplish the overall organization vision and mission by linking individual performance to companys objective. To cascade companys strategic goal to individual level. To ensure an objective and scientific evaluation of employee performance. To promote professional excellence. To identify gaps in performance and take necessary actions to ensure the achievement of organizational and individual goals. To encourage two-way communication between the executives and employees and bring about transparency in the performance assessment process. Elucidate tasks, goals, responsibilities, priorities and expectations. To evaluate the potential of the executives to assume higher responsibilities in the organization. To motivate and improve the performance of the individuals as well as that of their organization. To translate future skill requirements of the organization into individual development plans. Recognize quality performance and linking performance with reward and incentives system. Identify and resolve performance problems.

 To define a proper career planning process. To provide inputs for administrative decisions such as promotions, succession and strategic planning, and pay for performance. To facilitate fulfillment of individual aspiration. Performance Management is a process, not an event, which operates as a part of a continuous business planning cycle and is an integral part of the management process. It operates in a holistic mode, encompassing each and every aspect of the organization. Thus the primary objective should be to build a culture of high standards and supreme quality of service as part of the organization.

Components Of Performance Management System

Performance management is the practice of actively using performance data to improve the public's health. This practice involves strategic use of performance measures and standards to establish performance targets and goals, to prioritize and allocate resources, to inform managers about needed adjustments or changes in policy or program directions to meet goals, to frame reports on the success in meeting performance goals, and to improve the quality of public health practice. Performance Management components include: Performance Standards - establishment of organizational or system performance standards, targets and goals and relevant indicators to improve public health practice. Performance Measures - application and use of performance indicators and measures Reporting of Progress - documentation and reporting of progress in meeting standards and targets and sharing of such information through feedback Quality Improvement - establishment of a program or process to manage change and achieve quality improvement in public health policies, programs or infrastructure based on performance standards, measurements and reports. A Performance Management System is the continuous use of all the above practices so that they are integrated into the organization's core operations.

Performance management can be carried out at multiple levels, including the program, organization, community, and state levels.

The Performance Management System Process Flow

The PM process is employed in communicating the organizational plans, emphasizing on individual employee responsibility for meeting those targets and for assessing and comparing the individual and organizational performance results. The process involves: Performance planning Monitoring employee performance Employee development Rating/evaluating employee performance Recognizing/rewarding Process of Employee Performance Management

Source:www.opm.gov/perform.overview Planning: Planning is the process of setting organizational goals, stating performance expectations and communicating those to the employees. Organizational goals are established during the strategic planning stage. At this stage, managers define the expectations, objectives and priorities which employees have to work on. Performance management is the process that aims at translating these lofty visions and objectives into concrete results in terms of quality and quantity by delivering products and services to the society.

Goals mutually set and accepted by the manager and the employees should be SMART-specific, measurable, acceptable, reliable, and achievable. Clear expectations leave no room for confusion and employees get involved in their job immediately. The planning process lays down a clear set of standards that is measurable, understandable, verifiable, equitable and achievable against which performance will be judged. Monitoring performance: Monitoring is the process of consistent tracking of performance and providing an ongoing feedback and guidance to the employees and work groups on their progress toward their goals. Conducting regular progress reviews, comparing their actual performance against predetermining standards, provides an opportunity for employees to make changes when their performance falls short of expectations. Continuous observations and monitoring can detect unacceptable performance and address performance problems at every stage. Periodic meeting between the managers and the employees help in resolving issues before they become too big to handle. This leads to better reliability and ensures better results. Developing Performance: Employee performance has to be evaluated with the perspective of increasing the capacity to perform. All the shortcoming and performance deficiencies can be set right through training programs and exercises. Providing sample developmental opportunities enhance competencies and help employees to update themselves to meet the rising demands of the job. The matrix based on potential performance model (below) shows the classification of employees into Stars, Backbone, Problem Children and Icebergs.
Performance Matrix High performance Low potential Backbone/Workhorses Low performance Low potential Icebergs/Dead Wood High performance High potential Super Stars Low performance High potential Problem Children

Source: www.businessballs.com

During the performance developing stage, if the performance problem realized, then the Problem Children who have high potential, but perform below their potential, can be helped to excel to their full potential. If the work done by the problem children is of unacceptable quality and full of defects, then they can be provided direction and training to reduce such factors. The icebergs (those employees whose potential and performance are rated low) can be helped to discover their hidden potentials or improve their capabilities, identify fitting roles and provide direction to enhance their performance. Problems can be resolved through counseling and non-threatening discussions for the poor performance through specific examples. Thus Problem Child and Ice-bergs can be helped to upgrade their performance to become Workhorse and Stars. This increases the productivity of an organization by providing information on the importance of evaluating and addressing employee development. Rating of performance: This refers to evaluating employee or group performance against the elements and standard in an employees performance plan and assigning a summary rating based on the procedures included in the performance system. It is based on work performed during an entire appraisal period under consideration. This will ultimately result in the fulfillment of the objectives for which the Performance Management System (PMS) is created. When the performance does not meet the desired performance standards, then plans are developed to address the gaps. Rewarding performance/Recognition: A PMS has to duly acknowledge good performance by appropriate reward systems in terms of monetary benefits and promotions. Rewarding means recognizing employees, individually and as a group, for their performance and acknowledging their contributions. When good performance is not recognized, it acts as a demotivator. Hence, good performance should be rewarded and bad performance must be admonished appropriately.

The underlying principle of effective PMS is to encourage desired behavior by rewards and control undesirable behavior. Effective management of PMS requires that each component of the process is well taken care of. Goals are set and work is meticulously planned, progress is accurately measured, frequent feedback is provided and steps are taken to reward and recognize good performance.

PROBLEMS In PMS: Author Gabris and Michell have termed the employee performance as Mathew Effect-wherein the employee keeps receiving same results year after year, leading to self-fulfilling error. Thus, those who tend to perform well continue to do well and those who do not continue to be low on performance. Personal biases also influence the process, leading to unfair and inconsistent appraisal of performance, especially if such evaluations are based on a few isolated events rather than on the entire evaluation period. Some managers tend to be lenient by giving liberal rating while some others are too harsh in giving good ratings. Lack of follow-up, unfamiliarity with the employees potentials etc., are some problems of the PMS. Hence, companies have to create a PMS that is well developed and see that it leads to desirable results.

Who will be involved in Performance Management?

Supervisors Peers Subordinates HR managers Self rating Team members Customers Consultants Suppliers

SUPERVISORS
The general practice is that immediate supervisors manage the performance which in turn, is reviewed by the head of the Department/manager.

The supervisors are responsible to managing their and they have the opportunity to observe, direct and control the subordinates regularly. Moreover they are accountable for the successful performance of their subordinates.

PEERS
Managing performance of an employee by his or her colleagues can be affected in predicting future management success because peer rating are quite accurate in predicting which officer should be promoted and who should not. Peer appraisal may be reliable if the work group is stable over a reasonably and perform work with frequent interaction.

SUBORDINATES
The concept of having superiors rated by subordinates is prevalent in most of the organizations, especially in developed countries. For instance in most of the Universities of US, students evaluate a professors performance in the classroom. This method is also called as upward feedback can be used at other places too provided there exists cordial superior subordinate relationships. HR MANAGER The HR managers may advise the supervisor while evaluating their subordinates stressing the need for evidence for making specific appraisal judgments and comparing a particular subordinates evaluation with those of others. SELF RATING Employees self rating of performance are also sometimes needed. If the employees understand the objectives they are expected to achieve and the standards by which they are to be evaluated, they are largely, in the best

position to appraise their own performance. themselves are highly motivated. TEAM MEMBERS CONSULTANTS SUPPLIERS CONSULTANTS

The employees who appraise

As consultants are specially trained and they observe that the employee at work place for long time sometimes, consultants may be engaged for managing the performance of employees. WHEN PERFORMANCE MANAGEMENT IS DONE Generally performance management is not an event but an ongoing process. Informally it is conducted whenever or personal manager feel it is necessary. However systematically it is conducted on a regular basis may be semi annually or annually.

Effective Performance Management System:

Performance management system is the systematic process of standardizing the effectiveness of the organization, which therefore enables them to aim and achieve the goals of the organization, with the help of highly skilled and committed employees. Employee performance management not only contributes in planning work, setting goals and monitor performance, it also periodically evaluates the skill of the employees and rewards them with compensations and other bonus schemes. There is one potential determinant of performance management system being effective, which has received less attention; how tightly the results of PMS are tied to significant rewards. An effective PMS process aims to: Communicate organizational goals so that they can be easily understood ; Align individual employee objectives with the organizations vision, goals and strategic plans; Clearly communication employee functions and responsibilities ; Focus on setting clear performance objectives and expectations through the use of actions, behaviors and results based on accurate measures which are reliable, valid and specific;

It provides required training along with the suitable compensation and reward schemes to the members of the organization; Increases motivation to perform to the best of ones ability; Gain new insight into employee performance and employee self-esteem by providing clear developmental plans; Distribute rewards on a credible and acceptable basis; and Fosters excellence in performance by encouraging respect for one another. Based on their research, the Gallup organization suggests there are

four disciplines necessary for effective performance management: Hold all employees accountable for their local performance outcomes. Teach all employees to identify, deploy and develop their strengths. Align all performance appraisal and review systems around identifying, deploying and developing employees strengths. Design and build each role to create world-class performers in the role.

In many ways there are no secrets to implementing effective performance management. Performance management, if implemented effectively ensures that both employees and managers remain both productive and motivated. It can therefore summarize that highly motivated and committed human resource of an organization depends upon the effective ways of managing their performance. In order to unite the goals of employees with the employees with the goals of the organization, their performance should be accordingly appraised and they should be given the requires training to enhance their skills for the same. Therefore performance management is still the holy grail which contains key to the success of the organization. A performance management system will only be effective if it: Reward behavior that improves the employees performance Address behavior or incompetence that results in poor performance by discipline, development, or redundancy. Is integrating into a cycle of planning and performance measurement that extends from corporate, through business unit planning down to individual performance agreements Objectively measures performance. Objectivity can be achieved by setting competency standards or goals for various levels of performance, explaining how each will be measured and committing to rewards or

discipline for each standard during performance planning. Appraisal then becomes a simple and unemotional process based on objective criteria. Is trusted to be fair. Employees need to be reassured that the system will be used equitably across their organization. Achieve this by negotiating use of the system into an Enterprise Agreement or individual performance contracts and then making implementation of the system as transparent as possible. Both managers and employees see that they something to run using the system. Correct implementation sometimes requires managers to change the way they currently work. Good design will ensure ease of operation and managers should then be held accountable for using the system through their own performance contracts. Performance management system is an attempt to establish a clear understanding of what the organization strives to achieve and streamline the combined efforts of all the employees so that the company improves its effectiveness and competitiveness in the marketplace. Its a systematic alignment of employees objectives, skills, abilities and efforts with the organizations strategic objectives to create a high-performance culture. The emphasis here on improving, learning and developing the career potential employees to achieve overall business objectives. Performance management system focuses on ensuring that all the units of an organization are working efficiently to get the best out of everyone for obtaining organizational results.

CHAPTER-III ORGANISATION OVERVIEW

INTRODUCTION
Power Sector plays a very important role in transforming the economy into an industrially developed economy. The power sectors are required to function as autonomous corporate entities and to have independent, transparent and democratic regulations to guide and monitor their efficient, economical and competitive functions in commercial lines . The state of ORISSA the unique distinction of being the pioneer in the country to undertaken reform and restructuring in the power sector of the state. In 10 States of India, the private sector is operating to produce power to the extent of 1306.15 MW .If we look at the region wise, Northern Region produces the highest hydro power in the private sector followed by Western Region (460.50 MW) followed by Southern Region (55.45 MW), but it is surprising to note that private sector is not operating to produce power in the private sector. In the Eastern Region, Orissa tops the list of generation of power, out of 2496.53 MW produced in the total Eastern Region Orissa alone produces 2062 MW in Hydro Power .It is surprising to note that private sector is not permitted in this state to produce the power. In case of coal, the State Government is producing 420.00 MW and 1130.93 MW of power is generated under Central Government control. Orissa is the first state in the country to take up the power sector reforms to ensure stable and quality power at reasonable cost. The department of energy was created on 24 th April 1990 being separated from the Dept. of Water Resources. Presently Three Public Sector Undertakings viz: Grid Corporation of Orissa Limited (GRIDCO), Orissa Hydro Power Corporation Limited (OHPC) and Orissa Power Generation Corporation Limited (OPGC) are functioning under the Administrative control of Dept. of Energy, Govt. of Orissa. The Orissa Electricity Regulatory Commission (OREC) which is a quasi judicial independent body ensures transparent regulatory measures in the power sector of the State. Out of these three Public Sector Undertakings, Orissa Hydro Power Corporation Ltd (OHPC) is selected for the purpose of the present study OHPC (Orissa Hydro Power Corporation) was formed in terms of Orissa Electricity Reforms Act 1995 and

the Hydro Power Generating Stations of Govt. of Orissa as well as erstwhile OSEB were transferred to the control of OHPC as per the Orissa Electricity Reform (Transfer of undertakings, Assets, Liabilities, Proceedings and Personnel) Scheme Rules l996 and Amendment Rules 1997.lt is a Government of Orissa undertaking and was incorporated on 21 st April 1995. The efficient resource management by the process of automation has resulted in providing the cheapest electricity to the people of Orissa. OHPC plays an important role in maintaining Grid discipline under ABT regime for the Eastern Regional Grid by providing peak support.

INCORPORATION OF OHPC
As a result of Orissa Electricity Reforms Act-1995 and the Orissa Electricity Reforms OHPC, was registered under ICA on 21 st April 1995, which became operational with effect from 1st April 1996 as per notification No. 335 and 336. Initially all the assets, liabilities and proceedings (in respect of Hydro Power Projects) were transferred to the State Government. The State Government there after classified the assets, liabilities and proceedings acquired by the State Government as well as those owned by it into Generation. Transmission and Distribution Undertakings. Those which could not be classified as above were treated as residuary assets, liabilities and proceedings initiated. Being a newly set up corporation with employees from erstwhile OSEB, exemployees of State Government and also employees directly recruited by OHPC, the HRD wing, faced interaction of such organizational goals. For the purpose of the present study, the Orissa Hydro Power Corporation Ltd, a Government of Orissa Undertaking has been selected. This was formed under The Company Act, 1956, was started on 21 st of April 1995 but the real functioning has come in to force from 1 st April 1996.In overall, there are Seven Hydro Power Projects viz: Hirakud I (Burla), Hirakud II (Chipilima), Balimela, Rengali, Upper Kolab, Upper Indravati, Machkund, which are under operation, One Small HE Project i.e. Potteru Small Hydro Electric Project is under expansion and recently two units of Balimela Hydro Electric Project, Balimela i.e. Balimela Extension Project has been completed with a installed capacity of 2 X 75 MW. various challenges to meet the multifarious problems of employees into a cohesive group to achieve the

Hydro Power Projects Under OHPC

OBJECTIVES

To acquire, establish, operate, maintain, renovate, modernize in the State of Orissa and else while hydro electric generating stations, thermal and nuclear electric generating stations and any other electric generating stations based on any non-conventional sources of energy.

To carry on the business of purchasing, selling, importing, exporting, producing, trading, manufacturing or otherwise dealing in hydro electric power, thermal and nuclear electric power based on any non-conventional source of energy.

To study, investigate, collect information and data, review operations, plan, research, design, prepare feasibility reports, prepare project reports, diagnose operational difficulties and weaknesses and advise on the remedial measures to improve and modernize existing stations and facilitate and to undertake for and on behalf of others the setting up of hydro electric power plants, thermal and nuclear electric power plants and any other power plants based on any non-conventional source of energy.

VISION
To be a leading Power utility in the energy sector through diversified energy portfolio with due care & concern to the environment.

MISSION
i) To develop water resources in the State elsewhere in the Country while augmenting hydro power projects. ii) iii) To adopt state of the art technology for up gradation of the existing hydro power stations to achieve the highest level of efficiency. To establish and operate thermal power plants through joint ventures and also explore the opportunities to develop renewable energy resources viz-small hydro, wind solar. iv) To develop & operate coal mines allocated jointly in favour of HPC and other public sector undertakings by the Ministry of Coal, Govt. of India. power generating capacity by setting up new hydro

v) vi)

To improve productivity through effective planning and implementation of ERP system with development of robust & concurrent IT infrastructure. To professionalize the work force in line with the modern management / technical know-how.

OHPC AT A GLANCE TABLE : TOTAL PERFORMANCE 1 2 3 4 5 Incorporated under companies Act Year of starting of commercial operation Date of transfer of hydropower assets (excluding Machkund) Transfer of Orissa share of Machkund.(34.5MW) 21.4.1995 1996-1997 1.4.1996 1.4.1997 1272MW

Installed capacity at the time of transfer of assets

6 Present installed capacity .(October 2006) 7 8 9 Average Annual Generation Capability. Peak capability

1912MW

6000MW 11000MW

Installed capacity of ongoing projects: 6MW Potteru Hydro Electric Projects Balimela Extension Project 150MW

PEFORMANCE HIGHLIGHTS
The hydropower generating stations were transferred to OHPC w.e.f 01.04.1996. A brief power generation result (up to May 2009) has been presented below:-

TABLE : OHPC HYDROPOWER STATION CAPACITY Units Installed Capacity (MW) Hirakud HEP Chiplima HEP Balimela HEP Rengali HEP Upper Kolab HEP Upper Indravati HEP Sub-Total Machhkun d (30% Orissa Total 2062 5938.5 7625 2027.5 34.5* 5676 262.5 7198 342 600 .0 1962 3019 2979 7850 175 8025 2301 5803 243 6046 1474 3920 286 4206 766 2110 123 2233 275.5 72.00 510.0 250.0 320.0 Design Energy (MU) 06-07 Generation (MW) 07-08 08-09 09-10
10-11 (uptoAug )

684 490 1183 525 832

862 88 1621 670 1026

888 93 1832 983 1075

818 140 1076 882 586

574 130 786 549 407

297 100 590 178 179

Source : Published records of Orissa Hydro Power Corporation Ltd Summary of performance of OHPC is indicated below: Design Energy for sale (MW) QLD UNITS UIHEP TOTAL = = = 3676.86 1942.38 5619.24

TABLE: FINANCIAL REASULTS (Rs. in crores) Particulars Sale of power 06-07 303.65 Financial Year 07-08 386.04 08-09 329.16 09-10 296.16

Profit before depreciation and tax Less: Depreciation Net profit / Loss before tax.

178.21 117.23 60.98

254.43 117.23 137.10

136.53 118.96 17.57

161.78 129.04 32.74

PERFORMANCE ACHIEVED
OHPC has an installed capacity of 2062 MW, which is a distinct improvement over 1272 MW at the time of incorporation. The capacity augmentation of 790 MW is due to : Capacity addition of 600 MW by commissioning 4x150MW Upper Indravati Project. Capacity addition of 24MW during 1998 by Renovation Modernization and up- rating of Unit 1 & 2 of Burla Power House. Establishment of VSAT communication link from corporate office to upper Indravati, Rengali and Balimela project sites. OHPC has been able to mobilize internal resources from its operation to the extent of Rs. 280 Crores of the completed and on going projects and towards other capital expenditures. Out of term loan of RS. 495.37 Crores availed for the projects, it has repaid Rs. 263.15 Crores to the lender PFC.

JOINT VENTURE PROJECTS (i)

Orissa Thermal Power Corporation Ltd. (OTPCL)

OHPC & Orissa Mining Corporation Ltd. have together floated a joint Venture Company namely OTPCL for setting up thermal power plant of 2000 MW capacity. OHPC is a 50% shareholder of this JV Company . Private land acquisition is under progress. Coal linkage application has already been made to min of coal. Water allocation approval has also been obtained from WR Deptt. Singly window clearance has been obtained through high level committee. A committee comprising Senior Executives from DOWR, OTPCL, OHPC and Dam Safety Deptt. have been constituted for expediting the various clearances. (ii) Baitarni West Coal Company Ltd (BWCCL) OHPC has been allotted a coal block (Baitarani West of 602 MT) to be shared equally among the Kerala State Electricity Board and Gujarat Power Corporation Ltd. through the Govt. Dispensation Route vide the GoI, Ministry of Coal letter dt. 25 th July, 2007. A JV Company namely Baitarani West Coal Company Ltd. between the three allocates was incorporated on 22.04.2008 and Certificate foo commencement of Business was obtained on 05.05.2008. The development of the coal block as per the milestones stipulated by the Ministry of coal, Govt. of India is under progress. Engagement of consultant for selection of MDO (Mines Developer Operators) has been finalized. Work order is to be issued shortly. Finalization of consultant for forest clearance in progress. The documents for processing under Section 4 (I) of the Land Acquisition Act 1894 have been submitted to Collector, Angul. Application for prior environmental clearance for new open-cast Mine-cum-Washery along with PFR has been submitted to MOEF. Revised mining lease application has been submitted to Collector, Angul which has been forwarded to Director (Mines) for grant of lease.

DIFFERENT WINGS OF OHPC

There are three wings under Orissa Hydro Power Corporation Limited, Bhubaneswar, Orissa. They are Technical, Finance and Human Resource Development wing.

TECHNICAL WING :
On Introduction of Availability Based Tariff with effect from April 2003 and application of Electricity Act 2003 it has become important on the part of generators to maintain high level of machine availability and plant load factor. Hydro power generation has special place in the load management under the ABT regime. The followings are the main functions of the Technical wing: Activities For efficient running of their Hydro Power stations, the technical wing of OHPC has been reorganized to carry out the following activities.

Monitoring the functioning of Power Plants. Preparation of data base. Monitoring of Renovation and Modernization Programs. Planning for future R&M Programs and new projects. Inventory & procurement monitoring. Generation and Maintenance Planning and monitoring. Tariff and PPA including coordination with GRIDCO and OERC Computerization and online communication Coordination with Government and Semi Government bodies.

Finance
After formation of OHPC under the Reform Act a separate Finance wing with experienced and qualified executives has been created to manage the corporate finance. The following are the main function of the Finance wing:

Functions:

Resource management Budget & Allocation

Banking Loan and Investment Accounts & Audit Taxation Personnel Entitlement Provident Fund, Pension and Gratuity Fund

Human Resource Development

In recent times, HRD has become a very important wing of any organization. Consequent to formation of OHPC, Professionals were inducted in the organization. The Organization structure of OHPC is annexed Being a newly setup Corporation with employees from erstwhile OSEB ex-employees of State Government and also employees recruited directly by OHPC the HRD Wing is being faced with challenges to meet the multifarious problems of integration of such employees into a cohesive group to achieve the organizational goals. HRD wing is constantly striving to bring improvement in employee performance motivation and work culture. As Parts of its pro-active and Progressive HR Philosophy/ Policy the HRD wing has taken several initiatives and implemented systems to attract retain and develop its human forces in an atmosphere of trust collaboration . This Positive assumption and belief about people have indeed inspired the HRD Wing to put different ideas and policy in action at different time intervals. The wide spectrum of HR activities and initiatives ably executed by HR executives and supported by the Top management are illustrated below. The HRD wing has three important functions to perform. They are categorized into Personnel Function .industrial Relations and welfare and also other functions. They are briefly given under:

FUNCTIONS OF HR DEPARTMENT I. PERSONNEL FUNCTIONS

Implementation of Personnel Policies and rules Manpower Planning including recruitment & selection

Retirement and superannuation Salary and other benefits Personnel records

II. INDUSTRIAL RELATIONS & WELFARE

Industrial Relations Contract Labour Management Welfare activities

III. OTHER FUNCTIONS

General administration Estate Management Legal case handling Public Relation Training & Development Security (except Power House & Switchyard) Out of these wings the Human Resource Development (HRD) wing is most

important for the growth and development of any organization. This organization has also taken necessary steps in guiding the institution. This wing is clear in its functions .This wing is divided into three branches i.e. The Personnel Branch, The Welfare Branch and the other functions which are general in nature but looking after the very important functions of the organization. One important function is Training and Development, which is an integral part of Human Resource Development.

HRD OF OHPC: OHPC has three important wings for its smooth functioning and
development. One looks after the technical part of the production, the other one looks after the Finances and the very important one, i.e. the third one is Human Resource Development (HRD).In this chapter, a brief account of Human Resource Development, its functions, organization change, welfare activities and the major achievements of the HRD Wings . The Human Resource Development (HRD) wing of this organization as a part of its proactive and progressive HR Philosophy .This wing has initiated

several innovative measures and implemented them in the system to attain high rate of growth .The manpower has been inspired at different levels to put the philosophy into practice. The HRD Wing has been three units: I. The Personnel Wing II. The Industrial Relations and Welfare Wing III. The General Wing Absorption of employees working in the Government of Orissa (GoO) and Orissa State Electricity Board (OSEB). Consequent to the formulation of the Orissa Electricity Reforms Act, 1995 and the Orissa Electricity (Transfer of Undertakings, Assets, Liabilities, Proceedings and Personnel), Scheme Rules, 1996, the absorption process was completed in respect of the following employees: Executives 288 23 311 Non-Executives 2936 1556 4492 Total 3224 1579 4803

Govt. of Orissa OSEB TOTAL

EXECUTIVES Disciplines

Technical Discipline includes: Electrical (El.) Civil (Civil) Instrumentation & Control (I&C) Information Technology (IT) Mechanical (Mech.) Human Resource Finance Others include:Company Secretary, Estate, Materials, Public Relations & Secretarial.

EXECUTIVE CADRE

EXECUTIVE GRADE APPOINTING AUTHORITY GRADE E-1 TITLE Management Trainee Functional Director/Director HR

E-2 E-3 E-4 E-5 E-6 E-7 E-8 E-9 E-10

Junior Manager Assistant Manager Deputy Manager Manager Assistant General Manager Deputy General Manager General Manager Senior General Manager Chief General Manager

Functional Director/Director HR Functional Director/Director HR Functional Director/Director HR CMD CMD CMD CMD Committee of the Board Committee of the Board

CADRE OF TECHNICAL NON-EXECUTIVES Sl N o 1 Cadre Electrici an Designati on ElectricianC ElectricianB ElectricianA Sr.Electrici an Foreman(Eletrical) welder- C welder- B welder- A Sr.welder Sr.Gr. welder Fitter C Fitter B Sl N o Cadre Designation Mason - C 1 2 Mason B Mason Mason A Spl Gr. Mason IB Attendant 1 3 Erector' s Hostel Staff Jr. Cook Cook Khansama Care Taker Lift Operator 1 4 Operato r Office Telephone Attendant T.O.cum-

Welder

Fitter

Fitter - A Sr. Fitter Foreman (Mechanica l) Crane Operator C Crane Operator B Crane Operator A Sr. Crane Operator FORE MAN CRANE / SPL. GR. Operator C Operator B Operator A Sr. Operator / SPL. GR. OPT. Operator C Operator B Operator A Sr. Operator / SPL. GR. OPT. Store Keeper C Store Keeper B Store Keeper A Sr. Store Keeper Foreman

Mech- C T.O.cumMech- B T.O.cumMech- A Helper 1 5 Helper Jr. Artisan B Jr. Artisan A Lineman C 1 6 Lineman B Lineman Lineman A Sr.Lineman GROUP -B Wireman C wireman B wireman - A Sr.wireman Lineman C Lineman B Lineman Lineman A Sr.Lineman 1 8 Para Medical Hospital Attendant Ward Attendant Care Taker

Crane Opt

Opt (Ele)

1 7

Wirema n

Opt (Mech)

Store Keeper

Rigger

(store) Rigger C Rigger B Rigger A Driver C

1 9

Gardeni ng Comput er Operato r Others

Driver

Driver B Driver A Spl. Gr. Carpenter Carpenter C Carpenter B carpenter A Plumber C Plumber B Plumber A Blacksmith C Blacksmith B Painter - C

2 0 2 1

(Hospital) Mali Gardener Flowerist Compter Opt C Compter Opt B Compter Opt A Khalasi Sweeper/ Sweepers W.M / N.W.M. Attendant Errand Boy Mulia /Choukidar Petrol Man Driller Jr.Artsian - B (Rigger) (others) Scavenger Store Asst. Cleaner Grease man Hammer man Lift Operator Time Keeper B Work Sarkar Gr.I Operator - B (Lift) Meter Reader / Bill Asst Telex Operator

10

Carpena try

11 Auxillary

Turner C Turner B Turner A Auto Electrician C Auto Electrician B Machinist C Machinist B Machinist A Instrument (Mech) Opt (Auxiliary (HE)

Progress Recorder Cable Jointer Trailor Operator / Tele Printer Opt Care Taker (office) Superintende nt CADRE OF ADMINISTRATIVE NON-EXECUTIVES Sl No 1 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Designation SO (SG) SO
GR. I ASST. GR. II ASST. LD. ASST. HEAD ASST. SR. ASST SR. CLERK JR. CLERK PS PA STENO-CUMCA.GR. I STENO-CUMCA.GR. II STENO-CUMCA.GR. III TYPIST-CUM-CA. GR. I TYPIST-CUM-CA. GR. II TYPIST-CUMCA.GR. III COMPUTER ASST. GR. I COMPUTER ASST. GR.II COMPUTER ASST. GR. III HEAD DRAFTSMAN Sr. Draftsman DRAFTSMAN - A DRAFTSMAN - B CARETAKER RECEPTIONIST

Grad e E-3 E-2 NE-8 NE-7 NE-5 NE-9 NE-8 NE-6 NE-5 E-3 E-2 NE-8 NE-7 NE-6 NE-8 NE-7 NE- 5 NE 8 NE- 7 NE- 5 NE 9 NE 8 NE- 7 NE- 6 NE- 5 NE- 4

Sl No 50 51 52 53

Designation HINDI TEACHER PET (TRAINED) JR. LAB TECH PHARMASIST

Grade NE-7 NE-5 NE-6 NE-6

28 29 30 31 32 33 34 35 36 37 38 39
40 41 42 43 44 45 46 47 48 49

STOREKEEPER - C PHOTOCOPIER ZAMADAR BANK ATTENDANT PEON DIARIST-CUMDESPATCH DAFTARY CASHIER D.MAN- B DRIVER B RECORD SUPPLIER HELPER (OFFICE) WATCHMAN / CHOUKIDAR SWEEPER OFFICE ATTEND (KHALASI) WATCHMAN -CUM-SWEEPER NIGHT WATCHMAN HEAD MASTER ASST. TEACHER (TGT) TEACHER (IACT) TEACHER (MATRIC CT) CLASSICAL TEACHER

NE- 4 NE 3 NE 2 NE 3 NE 1 NE 3 NE 2 NE 6 NE 5 NE -5 NE 3 NE 1
NE 1 NE 1 NE 1 NE-1 NE-1 NE 9 NE-8 NE-7 NE-5 NE-7

MEN IN POSITION (excluding Contract Labour) The employees position as on 01.01.2011 (executives and nonexecutives including regular, NMR and Contingent Khalasis but excluding 368 employees on deputation mostly from DOWR posted at UIHEP, (Khathiguda and Mukhiguda) is as under A.

Units

Installe d Capacit y (MW)

Number Of Employees 01.01.2011) NMR Exec Non-Exe Ck u. ANE TNE

(As on Total

A. Corporate Office

48

58

106

106

B. Project under operation

i) Hirakud HEP ii) Chiplima HEP iii) Balimela HEP iv) Rengali HEP v) Upper Kolab HEP Machkund HEP & Potteru vi) Upper Indravati HEP vii) Machhk und (30% Orissa Share) Total 2062 387
441 157 7

250 320 275.5 72

48 25 69 61 66

45 19 62 81 68 8

263 123 229 364 216 0

0 0 0 2 0 0

0 0 0 1 0 0

356 167 360 509 350

356 167 360 509

510 11

369 19

600

59

100

344

25

85

613

613

34.5

38

38

38

27

86

2518

2480

** B. Executives On Deputation
Sl. No. 1. 2. 3. 4. 5. 6. Unit UIHEP ( Kathiguda ) UIHEP (Mukhiguda) HHEP CHEP UKHEP(Bariniput) Machakund Corporate Office Total Executive 33 2 1 2 1 2 2 43

C.

Non-executives On Deputation
Sl. No. 1. 2. 3. Unit UIHEP ( Kathiguda ) UIHEP (Mukhiguda) UKHEP(Bariniput) Machakund Total Non-executives ANE TNE 25 0 148 151 1 0 4 0 178 151 Total 25 299 1 4 329

Grand total ( A+B+C)=2518+43+329=2890 As on date there are in total 2518 regular employees (including executives and non-executives) 372 employees on deputation (including executives and nonexecutives) from other organizations/departments 86 Contigent Khalasis (CK) and 27 Nominal Muster Rolls (NMR)

2890 employees in total including regular and employees on deputation. INDUSTRIAL RELATIONS There are 08 nos. Employees Coordination Committees, 20 nos. Trade Unions and 02 nos. of Officers Associations (OHPC Engineers Service Association and OHPC Officers Association). In total there are 05 nos. recognized Trade Unions operating in OHPC Limited. The Industrial relations in OHPC has been cordial and harmonious in the recent years.

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** TRAINING AND DEVELOPMENT The Management provides continuous emphasis on manpower training and development activities. A well-furnished Training Centre has been constructed at Chandaka Industrial Complex with the financial assistance of DFID. OHPC has provided training in areas of specific skills, human relations, managerial and supervisory skills through both on-the-job and off-the-job methods. This is based on training-needs analysis done through the open potential appraisal system of OHPC. Refresher training to executives and non-executives of the power plants is being imparted at the OHPC training centre, an Institute recognized by the CEA. Employees are also sponsored for training conducted by reputed outside agencies. Seminars and workshops are being organized in-house for all categories of employees to keep them updated in the related areas PERFORMANCE MANAGEMENT Existing system of appraisal in OHPC includes: Confidential Character Roll (CCR) involving rating on a five point scale for non-executives. Performance Appraisal Review for Executives subjective and point rating method.

VOLUNTARY RETIREMENT SCHEMES: There is a Voluntary Retirement Scheme enacted in the year 2009 in operation. So far 40 (forty) employees have been separated by means of VRS. RENOVATION & MODERNISATION: (i) Renovation & Modernisation of unit-I, RHEP, Rengali has been started since 25th March,2009. (ii) The renovation process of BHEP, Balimela has been initiated in consultation with CEA. (iii) DPR for the R&M of unit-5 & 6, HHEP, Burla being prepared in-house is under final stage of completion

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**

ORGANIZATIONAL CHANGE:
This has been effected through

Rationalization of pay scales and unification of cadre of employees have been implemented.

Unification of cadres is complete for the administrative and the technical non-executive employees. Reorganization Reorganization of divisions under OHPC has been effected

RE-ORGANIZATION OF TECHNICAL WINGS UNDER THE UNIT HEADS

Re-structuring & re-deployment: Restructuring of the functions of the units has been completed and OHPC has already created 3 (three) clear cut wings (HRD, FINANCE & TECHNICAL) in all the units.

Manpower Restructuring in Administrative& Technical Non-executive categories has been completed in line with report of NPC. A Human Resources Information System (HRIS) for maintenance of database of Human Resources is maintained. This has been achieved by planned re-deployment of the surplus

staff; re-engineering / re-designing of jobs and manpower assessment made through National Productivity Council.

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**

RE-ORGANIZATION OF TECHNICAL WINGS UNDER THE UNIT HEADS

UNIT HEAD (GM/SGM)

DGM/AGM (TECHNICAL WING HEAD)

Manager Generation Division

Sub-Division

Manager Maintenance Division

Sub-Division

Manager Utility Division

Sub-Division

Manager P&C Division

Sub-Division

Dealing with operation, safety, clerical and store activities

Dealing with the maintenance of Turbine, Generator, Transformer & powerHouse of in general.

Dealing with construction and maintenance of all office building, civil structure, distribution lines etc.

Dealing with production & control of transformers etc.

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**

ORGANISATION STRUCTURE OF DIRECTORS

BOARD OF DIRECTORS

MD

DIRECTOR (OPERATION)

DIRECTOR (HRD)

DIRECTOR (FINANCE)

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**

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**

ORGANISATION STRUCTURE OF TECHNICAL DISCIPLINE AT CORPORATE OFFICE

DIRECTOR (OPERATION)

SGM (El.)

SGM (El.)

DM (El.)

DM (El.)

DGM (El.)

Mgr (El.)

Mgr (El.)

Mgr (El.)

Mgr (El.) Mgr (El.)

DM (El.) DM (El.)

AM (IT) AM (IT)

AM (El.)

DM (El.) DM (El.)

AM (El.) AM (El.)

AM (IT) JM (IT)

ORGANISATION STRUCTURE OF HRD DISCIPLINE

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**

AT CORPORATE OFFICE

DIRECTOR (HRD)

DGM (HRD)

AGM (HRD)

Mgr (HRD)

Mgr (HRD)

Mgr (T&D)

AM (HRD)

DM (HRD)

AM (PR)

AM (HRD)

DM (HRD)

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**

ORGANISATION STRUCTURE OF FINANCE DISCIPLINE AT CORPORATE OFFICE

DIRECTOR (FINANCE)

DGM (F)

DGM (F)

AGM (F)

Mgr (F)

SGM-cum-CS

AM (F)

AM (Sectt.)

ORGANISATION STRUCTURE AT UNITS

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**

UIHEP
GM (El.)

HHEP
SGM (El.)

CHEP
GM (El.)

UKHEP
AGM (El.) I/C TECHNICAL HEAD

RHEP
SGM (El.)

BHEP
GM (El.) TECHNICAL HEAD

TECHNICAL HEAD

TECHNICAL HEAD

TECHNICAL HEAD

TECHNICAL HEAD

FINANCE HEAD

FINANCE HEAD

FINANCE HEAD

FINANCE HEAD

FINANCE HEAD

FINANCE HEAD

HRD HEAD

HRD HEAD

HRD HEAD

HRD HEAD

HRD HEAD

HRD HEAD

All the Unit Heads report to Director (Operation) for the day to day activities of the Unit. For HR & Finance, they contact the respective Directors for smooth functioning of the Unit as and when required. The HR & Finance Head of the Units report to their Unit Heads and they report to their respective Directors through the Unit Head structurally. In case of Finance and Trust matters, the SGM-cum-Company Secretary report to Director (Finance) as and when required.

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**

CHAPTER-IV
PERFORMANCE MANAGEMENT

IN OHPC

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**

PERFORMANCE MANAGEMENT IN OHPC

The success of an organization depends on the ultimate performance of its employees, developing the skills and abilities to achieve the organizational goals and provide maximum possible satisfaction to the employees, cover major areas of responsibility of HRD department. The focus of performance management system is progress and success towards Employee Development and organizational improvement & goal achievement. The goal of performance is to achieve the company mission and vision. Performance management became popular as a total quality management programs are emphasized using all of the management tools including performance appraisal to ensure achievement of performance goals. Performance appraisal refers to all formal procedures used to evaluate the contributions and potentials of employees. It is systematic and periodic evaluation or rating of an employees performance in his existing job and on his potentialities for taking up greater responsibilities. The PA system serves as an useful tool for development of employees but its effectiveness depends on the importance placed on it. The system works when appraisals are factual, honest and they encourage employees to set and achieve both work and personal objectives. It is therefore essential that the appraisal should be an honest reflection of the employees abilities, attitude, output and discipline. Performance appraisal process at OHPC normally goes through 2 processes. I. II. Executive performance appraisal Non-executive performance appraisal

EMPLOYEES PERFORMANCE APPRAISAL SYSTEM

Employees are key to any organization. Without competent employees no organization is accepted to hold a pace of provisions other than valuable resources such as capital, technology etc. Performance appraisal system is essential for assessment of the performance of both executive and non-executive as well as to plan out other development in an effective management system. Though OHPC is a successful and profit ******************************

** earning organization, its success is devoted to its employees. It has introduced the performance appraisal system with a view the organizational success depends on the commitment and contribution of the employees. It shall be the policy of the company to introduce an open appraisal system for the officers which will be applied in a fair and equitable manner and designed to help. OHPC has started performance appraisal system in 2002 and it has an objective assessment. Executive performance appraisal Executive appraisal system is a self-appraisal system where each executive has the right to evaluate his own achievement during the year. Executive performance appraisal system in OHPC has certain objectives. To integrate individual and organizational goals through a system of performance assessment which is linked to the achievement of organization To ensure an objective assessment of the executives performance against mutually agreed target well in advance To provide individual executives with continuous and periodic feedback on their performance and identify their developmental needs To identify and develop the potential of executive for enhanced performance To identify impediments to performance and action needed to remove them Agreement between the officer concerned and his controlling officer of an action plan aimed at improving the performance of the individual and of the unit Each officer of the company will be appraised during the month of April, May or June. The appraisal is undertaken by the Controlling officer. The appraisal system will evolve a proactive review, by the officer concerned and his controlling officer, of the work related activities and

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** standards of performance relating to both the job and the behavior of the officer. In doing so the appraisal process will provide an overall assessment
Executive grade and title Reporting Officer Reviewing officer Accepting officer Authority competent to decide on representati on against adverse remark Functional Director Functional Director Functional Director Functional Director Functional Director CMD

E 2 E 3 E 4 E 5 E 6 E 7 E 8 E 9

Junior Manager Assistant Manager Deputy Manager Manager

Asst. Manager/ Dy. Manager Asst. Manager/ Dy. Manager Manager

Manager

Asst. General Manger Sr. General Manager Sr. General Manager Sr. General Manager Sr. General Manager Functional Director CMD

Asst. General Manager Asst. General Manager Dy. General Manager General Manager Sr. General Manager Functional Director CMD

Asst. General Manager Dy. General Manager General Manager Sr. General Manager Functional Director

Assistant General Manager Deputy General Manager General Manager Sr. General Manager

Committee of Board Committee of Board

CMD

of each officers performance.

LEVEL OF REPORTING OFFICER, REVIEWING OFFICER AND ACCEPTING OFFICER ******************************

** Note: 1. ordinarily, the reporting officer shall be the immediate senior officer under whom an officer is working. 2. Where there is no reviewing officer, the performance appraisal form may be sent to the accepting officer.

Form Description Of Appraisal Process

Part-I (To be filled up by the appraise) Task and Target assigned for the year Part-II (To be filled up by the Reporting Officer) A. Task Accomplishment B. Work Performance and Managerial Trait appraisal C. Overall evaluation Part-III (To be filled up by the Reviewing Officer) A. Performance review and the steps undertaken by the reviewing officer to improve the performance of the appraise B. Overall evaluation (to be filled by reviewing officer) C. Overall evaluation (to be filled up by Accepting Officer) Part-IV (Statement for Training and Development Needs)

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** 1.

CHAPTER-V ANALYSIS OF DATA

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** In order to know the effectiveness of the Performance Management System programs in OHPC a survey was made with the help of structured questionnaires. Questionnaires were distributed in the basis of single random sampling among the executives. However only 22 schedules were sorted out for final analysis. The response with regard to question schedule and personal interview with executives were analyzed. The analysis of these data collected is presented in the following tables.

1. Do you think a performance management is necessary for OHPC?

Options
a. Yes b. No c. No idea Total

Response in No. 20 6 0 20

Response in % 100 0 0 100

2. Does your organization operate a formal performance management system?

Options
d. Yes e. No f. No idea Total

Response in No. 14 6 0 20

Response in % 70 30 0 100

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**

No 30%

Yes 70%

3. If yes, which of the following groups of employees do these processes applies?

Options
a. b. c. d. e. Senior Managers Team managers Technical/Clerical Professional No idea

Response in No. 0 0 0 15 5 0

Response in % 0 0 0 75 25 100

Total

100% 50% 0%

25 75

Employees Professional No idea

4. Are the following processes a part of your performance management system?

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**

Options a. b. c. d. Coaching Training & Development Career Mgt. & Development Succession planning Total

Response Response in in No. % 0 0 15 68.18 7 31.82 0 0 22 100

5. Please indicate which of the following methods of performance appraisal form a part of
your system?
Options a. b. c. d. Graphic Rating Scales Ranking Method Self Appraisal Critical Incident Assessment Total Response Response in No. in % 15 50 2 43.33 13 6.67 0 0 30 100

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**

6. Who sets the performance goals/requirements for individuals better?

Options a. b. c. d. e. Senior managers HR professionals Line mgrs/ team members Appraises Appraiser & Appraise Total Response Response in in No. % 0 0 5 22.72 17 77.28 0 0 0 0 22 100

7. Why do you have performance management systems in OHPC?

(Mark as many options as appropriate)

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**

Options a. Retention Strategy b. Reward allocation c. Facilitates promotion, transfer & termination decisions d. Identifying barriers to performance e. Identification of T & D needs f. To clarify an employees job requirement for job performance Total

Response Response in in No. % 0 0 10 38.46 50 13 0 0 0 0 3 26 11.54 100

8. What are the determinants for job performance in OHPC?

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**

Options a. b. c. d. e. f. Organizational Culture Competency of the employees Attitude Technology Intelligence/Knowledge Aptitude Total

Respons Response in e in No. % 0 0 16 80 0 0 0 0 4 20 0 0 20 100

INTERPRETATION:
This group consists of 8 questions which are about the nature of the current performance management system in OHPC. From table no.1 of this group we find that all the executives feel that a performance management is very much necessary for improving performance of OHPC. And about 60% of respondents feel that the PMS practicing in OHPC is a formal one, whereas 40% respondents feel that there is no formal performance management system is being practiced in OHPC. From table-3 it is clear that professionals generally carry out the performance management in OHPC. Analyzing the responses of Q. 4 it is seen that Performance management in OHPC generally includes Training & Development and career mgt. & development. From table-5 it is seen

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** that, 50% respondents said that graphic rating scale is the technique which OHPC uses to measure the performance of its employees. Whereas 42% respondents said self-appraisal and 7% said ranking method are also used for measuring performance in OHPC. Likewise it is seen from the above that, 77% respondents said that it is the work of the line manager to set goal for performance. According to rest 23% respondents HR professionals also helps in setting of goals for the performance of their employees. It is seen that most of the respondents (50%) feel that performance management in OHPC is intended to facilitate transfer, promotion and termination, whereas 39% respondents feel that it is intended for reward allocation and 11% feel that it is to clarify the employees job requirement for its job. From the above it is seen that 80% respondents believe that job performance in OHPC is determined by the competency of the employees, while 20% feel that knowledge/intelligence is also a major determinant of the job performance in OHPC. Perception of HR Professionals about performance management system : 1. What according to you is the most challenging aspect of performance in your organization?

Options a. Determining the evaluation criteria b. Creating a rating instrument c. Lack of competence d. Errors in rating and evaluation e. Resistance Total

Respons Response in e in No. % 0 0 8 40 0 0 7 35 5 25 20 100

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**

2. According to you performance management in OHPC involves :

Options a. Looking Backward b. Filling forms c. Focuses on development fostering Communication d. No idea Total Respons Response in e in No. % 7 35 10 50 3 15 0 20 0 100

&

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**

3. How is performance-linked pay related to performance management in your organization?

Options a. Performance-linked incentives b. Promotions coupled with salary increase c. Provisions of fringe benefits d. No performance based pay e. No idea Total Respons Response in e in No. % 0 0 0 0 0 0 15 75 5 25 20 100

4. What do you think Documents of performance reviews should be the function of:

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**

Options a. b. c. d. HR Department Individual Line manager/ project manager Others. Total

Respons Response in e in No. % 14 70 0 0 6 30 0 0 20 100

5. How many meetings are scheduled in a year to discus employee performance?

Options a. b. c. d. e. 1 2 3 Quarter or more Cant say Total Respons Response in e in No. % 0 0 0 0 0 0 16 80 4 20 20 100

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**

6. What in your opinion are the causes for failure of performance appraisal system in OHPC?
Options a. b. c. d. Lack of clarity Lack of communication Intervals of appraisals Any others Total Respons Response in e in No. % 13 59 9 41 0 0 0 0 22 100

7. What are the stages of performance management during which you communicate with your
employees?

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**
Options a. b. c. d. Goal-setting stage Data-gathering stage Mid-term reviews Annual reviews Total Respons Response in e in No. % 0 0 0 0 6 0 14 0 20 100

8. Your opinion on employee self-appraisal?

Options a. b. c. d. Highly beneficial Beneficial to a certain extent Tends to be inflated Not beneficial at all Total Respons Response in e in No. % 0 0 9 45 11 55 0 0 20 100

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**

9. Do you believe that linking rewards to performance would:

Options a. b. c. d. Motivate employees Solve problems Both good and bad effect No idea Total Respons Response in e in No. % 12 60 2 10 6 30 0 0 20 100

INTERPRETATION: There are 9 questions in this group which are designed to collect the perceptions of the executives of OHPC about performance management system. we find that a major % of executives ( 40%) feel that creating a rating instrument to measure the performance of its employees properly is the most challenging aspect of performance management in OHPC,

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** whereas 35% of executives feel that removing errors from rating and evaluation is the big challenge for performance management. Some also feel that resistance is also a challenging aspect of PM in OHPC. From table-2 we find that 50% of executives believe that PMS in OHPC is nothing just looking backward and 35% executives feel that it is just filling forms. Unfortunately a very few executives approximately 15% feel that PMS in OHPC is for focusing on development. Likewise another negative aspect of PMS in OHPC is that there is no performance based pay system in OHPC. From above it is seen that 75% of executives said that there is no pay system is being practiced by linking pay to performance. Traditional pay system is still there in OHPC. As Performance review is a process of continuous performance management and 70% executives feel that documents of performance reviews should be a function of HR dept. whereas 30% executives feel it should be a function of respective project manager/line manager. According to the responses of executives (80%) of Q.5, it is clear that 4 or more meetings are scheduled in a year to discus about the employee performance, whereas 20% executives feel that there is no specified nos. of meetings are held. According to 70% of executives during the annual review stage they communicate with their employees about their performance, whereas 30% said that in mid-term review stage also they interact with their employees. As self-appraisal is also a method of performance appraisal used in OHPC, by collecting their views about self-appraisal it is seen that 55% of executives of OHPC believes that self-appraisal of employees tend to be inflated, whereas 45% believes self-appraisal is beneficial to certain degree. Likewise 60% of executives believe that linking rewards to performance would motivate employees whereas 10% believe that it would

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** help to solve the problem and 30% feel that linking rewards with performance has both good and bad effects. The most important question arises is that what are the reasons of failure of PMS or poor performance in OHPC. According to the perceptions of the executives it is seen that 59% executives feel that lack of clarity about the performance management is the major reason of its failure and 41% executives feel that lack of communication of its purpose and objectives is also a reason of its failure in OHPC.

Effectiveness of performance management systems and methods used in evaluation:

1. There is a formal system for evaluation of performance management practices in your

organization.
Options a. b. c. d. e. Strongly agree Agree Neutral Disagree Strongly disagree Total Respons Response in e in No. % 6 30 8 40 4 20 2 10 0 0 20 100

2. Plz specify the process you use, to evaluate:

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**
Options a. b. c. d. Opinion/ Attitude survey Formal feedback(written) Informal feedback(verbal) others Total Respons Response in e in No. % 4 20 0 0 16 80 0 0 20 100

100% 80% 60% 40% 20% 0% 20 Respondents Attitude survey Informal feedback 80

3. What
strategies of your

organization have been linked to the performance management systems to make it more effective?

Options a. b. c. d. Reward strategy Culture strategy Team work strategy Leadership strategy Total

Respons Response in e in No. % 1 5 0 0 15 75 4 20 20 100

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**

4. Is the existing performance management system in OHPC helps in improving the overall
performance of the organization?

Options

Respons Response in e in No. % 7 13 0 20 25 65 10 100

a. Yes b. No c. No idea Total

5. Do you think mutual setting of targets is better than superior setting target:
Options a. Yes b. No c. No idea ****************************** Total Respons Response in e in No. % 15 75 03 15 02 10 20 100

**

100% 80% 60% 40% 20% 0%

10 15

6. Weather
performance review takes place timely:
Respons Response in e in No. % 7 35 11 55 2 10 20 100

75

Options
Respondents Yes No

a. Yes b. No c. No idea Total

No idea

INTERPRETATION This group comprises of 6 questions and describes how effective the PMS and the methods of evaluation are in OHPC. From the first question of this group it is seen that 30% of respondents strongly agree that there is a formal system for evaluation of performance management in OHPC.

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** According to 80% of respondents informal feedback is the process used to evaluate employee performance, whereas according to 20% respondents attitude survey is also a technique of evaluation. Likewise it is seen that 3 types of strategies like team work strategy, reward strategy and leadership strategy have been linked to PMS to make it more effective in OHPC. According to 75% of the respondents teamwork strategy is the mostly used strategy which links to the performance management to make it better. Analyzing the responses of Q.4 we find that 65% of executive feel that performance management in OHPC is totally ineffective in improving companys overall performance, whereas 35% of the respondents feel that performance management in OHPC helps in improving organizational effectiveness. Likewise 75% of respondents feel that mutual setting of goal is better than superior setting, whereas 15% believes that it is not and 10% respondents remained undecided. From the analysis of last question of this group we find that 35% of respondents said that performance reviews in OHPC takes place in time but surprisingly 55% of respondents were of the opinion that performance review doesnt takes place in time in OHPC and 10% of the respondents opinioned that they have no idea about this. Testing of hypothesis: To establish a relationship between the formal performance management system and its effect on the overall performance of the organization, the researcher had used the responses of the following 2 questions: i. ii. Does a formal Performance management system exist in OHPC? Is the existing PMS of OHPC effective in improving the organizational overall performance?

Question (ii)

Question (i)

Total

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**
Yes Yes No Total 4 9 13 No 2 5 7 6 14 20

Observed frequency (O) 4 2 9 5 20

Expected frequency (E) 3.9 2.1 9.1 4.9 20 O-E 0.1 -0.1 -0.1 0.1 0 (O-E)2 0.01 0.01 0.01 0.01 0.04 (O-E)2/E 0.0026 0.0048 0.0011 0.0020 0.0105

Using Chi-square test for independence, the hypothesis is tested. Null hypothesis is: The overall performance of OHPC is independent of its formal Performance Management System.

Here the degrees of freedom (d.f) are (2-1) (2-1) = 1

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** From the above table, we have value of chi-square at 0.05 level of significance and 1 d.f = 3.841 Value of chi-square at 0.01 level of significance and 1 d.f = 6.635 Since the calculated value of chi-square is much less than the tabulated value of chi-square for 1 d.f at both 1% and 5% levels of significance, it is not significant at either level of significance. Thus the data dont provide us any evidence against the null hypothesis, so the null hypothesis is accepted. Hence, we may conclude that the overall performance of OHPC is not dependent on whether the PMS of OHPC is formal or not. More attention should be paid to the performance management system of OHPC to make it more effective so that it can contribute to the overall organizational performance.

CHAPTER-VI SUGGESTIONS AND

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**

CONCLUSION

FINDINGS FROM THE STUDY

In the foregoing chapter we have discussed different components relating to the performance management in OHPC. In this chapter, an attempt have been made to give an integrative or comparative picture of OHPC on the basis of the analysis and some suggestions are made by the researcher for improving the existing PMS in OHPC and to overcome the barriers relating to Performance management. Findings of this survey are as follows: From the study it is found that there is no formal PMS exists in OHPC. According to most executives of HRD dept. of OHPC a formal performance management is very much necessary for the organizational effectiveness. The existing performance management system of OHPC needs radical changes to promote competitiveness. The status of performance planning and development is inadequate in OHPC.

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** Performance management in OHPC only includes performance appraisal and training and development process. No formal performance counseling or focused career management system is carried out in OHPC. Majority of the respondents showed their dissatisfaction towards performance assessment system. PMS in OHPC involves a performance appraisal review form. There is no performance linked pay system in OHPC. It has been found out that the self-appraisal system as viewed by the executives is far behind of its purpose. According to the respondents the goal setting should be done by the mutual consent of both superior (appraiser) and the subordinate (appraise). From study it is seen that PMS in OHPC contributes little or no value in improving the organizational performance and effectiveness. From study it is evident that lack of clarity and lack of

communication of plans & objectives of the organization as well as PMS, are the major reasons of failure of PMS in OHPC. CONCLUSION Performance Management System at OHPC has been in vogue since its inception. So, its high time to introduce a new policy by this organisation. The procedure laid down in this system is quite clear to the concerned persons who have been given the job to measure the performance of various individuals. But yet the persons (Executive) at the various levels for whom this policy has been implemented are not well aware of the procedure and policies followed by this system. This policy is capable of identifying the individuals performance and is able to give information to the management relating to an individual ******************************

** performance efficiency, his promotion criterion and the performance deficiency and means and ways to minimize his deficiency and take corrective measures to develop the skills of individuals which is required for the future needs of the organisation. Apart from the above merits, the management could not implement this system in its true spirit, for it been new for the organisation, yet they are working hard to derive benefits from this. The day this PMS is carried on as per stipulated procedures and policies then it is definitely going to earn fruitful results for the company (i.e. OHPC) and will garnish the entire organisation with its presence.

SUGGESTIONS The opinion survey gives a brief insight into study of performance management in OHPC. After a detailed study and analysis of the PM in OHPC, I would like to put forth the following suggestions to the company: The very purpose of establishing a formal performance management system in OHPC and its objectives should be communicated down properly to its all levels. It should be accepted in its true sense, it means the policy should be followed as per stipulated method. Performance planning and development plans should be carried out purposefully. ******************************

** Performance appraisal should be more specific and transparent. The purpose of the appraisal system should not be only promotion but should be developmental. The task and target should given to the appraise in time and must be decided through mutual consent of both the appraiser and appraise. Cross Team Appraisal should be followed to eliminate the biasness from the Performance Management System. The performance review meeting should be conducted periodically. Proper evaluation process should be carried out and biasness on part of the appraiser should be avoided. Performance Feedback is given to the executives through

counseling, Training, Coaching, Transfer to other department etc. Feedback should be given regularly so that individuals could rectify their performance deficiency within the short period and not after one assessment year. Proper attention should be given to developmental plans.

Performance counseling should be given more attention. It needs more exercises both on the part of appraiser and appraises to make the self-appraisal process more effective. Career management and development and performance linked pay must be included as apart of the PMS of OHPC. Focus should be more on training needs, responsibility change over and career growth. Appraisal system must be linked to reward system to motivate employees towards better performance of individual and of organization. Organization should practise a fomal PRP system.

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** A committee should be formed for reviewing the performance of executives starting from EI and above. It is necessary for the system to establish the way by which the executives (appraisee) and his boss (appraiser) can deal more directly with the work related problems.

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**

ANNEXURES

Department of Personnel Management & Industrial Relations

Respected Sir/Madam, I am conducting a survey on Performance Management System in your organization as a part of my course curriculum of

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** P.G in P.M.I.R, Utkal University. So I, request you to spend some of your valuable time in completing this questionnaire. Your responses with respect to this questionnaire will be strictly used for academic purpose only. I would request you to provide your frank opinion. Thank you for your co-operation. Your sincerely Monalisha Nayak Student,P.G Deptt. Of P.M.&I.R.

Questionnaire
(Identification of the respondents will not be disclosed)) General profile of Respondents: 1. Sex: male 36-45 female 46+

2. Age group: 25-35 3. Designation: 4. Experience : a) Less than 1 yr b)

2-4 yrs

c)

5-7yrs

d)

More than 7yrs

5. Which of the following economic sectors best describes your organization? a) public sector b) private sector-manufacturing c) private sector-service d) others (pls. specify) 6. Appropriately how many people are employed in your organization?
a) Less than 100 b)

101-500 c) 501-1000 d) more than 1001

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**

PERFORMANCE MANAGEMENT SYSTEM

Nature of current performance management system: 1. Do you think a performance management is necessary for OHPC? a) Yes b) No c) No idea

2. Does OHPC operate a formal performance management system? a) Yes b) No c) No idea

3. If yes, which of the following groups of employees do these processes applies? a) Senior managers b) Others managers/team leaders c) Technical/clerical d) professionals e) no idea 3. Which of the following process (es) form a part of your performance management system?(mark as many options as appropriate) a) Coaching development b) Training and development d) Succession planning c) Career management &

4. Please indicate which of the following methods of performance appraisal form a part of your system? a) Written essay method b) Graphic rating scales Assessment(BARS) c) Ranking method d) 360 degree appraisal ****************************** g) h) Paired Comparison Forced distribution method e) f) Critical incident assessment Behavioral

** e) Self-appraisal If any other pls. specify 5. Who sets the performance goals/requirements for individuals better in
OHPC

j)

Balance scorecard

? d) Appraises e) Appraiser & Appraises Others (pls. specify)

a) Senior Manager b) HR professionals

c) Line managers/Team members f)

6. Why do you have performance management systems in OHPC? (Mark as many options as appropriate) a) Retention strategy b) Reward allocation f) Identification of T&D needs

g) Motivation strategy

c) Facilitates promotion, transfer & termination decisions d) To clarify an employees job requirement s for job performance e) Identifying barriers to performance 7. What are the determinants for job performance in OHPC? a) Organizational culture b) Competency of the employee c) Attitude f) d) e) Technology Intelligence

Aptitude

Perception of HR Professionals about performance management system : 1. What according to you is the most challenging aspect of

performance in your organization? a) Determining the evaluation criteria b) Creating a rating instrument

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** c) Lack of competence d) Errors in rating and evaluation e) Resistance 2. According to you performance management in OHPC involves : a) Looking backward b) Filling forms c) Focuses on development & fostering communication d) No idea e) Any others, pls. specify 3. How is performance-linked pay related to performance management in your organization? a) Performance-linked incentives b) Promotions coupled with salary increase c) Provision of fringe benefits d) No performance based pay exists e) No idea 4. Documents of performance reviews is the function of: a) Hr department c) Individual

b) Line manager/project manager d) Others (pls. specify) 5. How many meetings are scheduled in a year to discus employee performance? a) 1 b) 2 c) 3 or more d) Cant say

6. What in your opinion are the causes for failure of performance appraisal system in OHPC? a) Lack of role clarity b) Interval of appraisals c) Lack of communication d) Any other pls. specify

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** 7. What are the stages of performance management during which you communicate with your employees? a) Goal-setting stage b) Data-gathering stage 8. Your opinion on employee self-appraisal? a) Highly beneficial b) Beneficial to a certain degree c) Tends to be inflated d) Not beneficial at all c) Mid-term reviews d) Annual reviews

9. Do you believe that linking rewards to performance would: a) Motivate employees b) Solve problem Effectiveness of performance c) Both good and bad effects d) No idea management systems and

methods used in evaluation: 1. Is there a formal system for evaluation of performance management practices of the organization? a) Strongly agree d) Disagree b) Agree c) Neutral

e) Strongly disagree

2. If yes specify the process you use, to evaluate: a) Opinion/Attitude survey a) Formal feedback(Written) c) Informal feedback(verbal)

d) Others(pls. specify)

3. What strategies of your organization have been linked to the performance management systems to make it more effective? a) Reward strategy c) Team work strategy

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** b) Culture strategy d) Leadership strategy

4. In general, how effective has your organization performance management processes proved in improving overall performance? a) Effective b) Moderately effective c) Ineffective d) Dont know 5. Do you think mutual setting of targets is better than superior setting target: a) Yes b) No c) No idea

6. Weather performance review takes place timely: a) Yes b) No c) No idea

BIBLIOGRAPHY
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**

BOOKS Armstrong and Baron, Performance Management, key strategies and practical guidelines, Prentice Hall of India (P) Ltd. Rao VSP, Human Resource Management Rao TV, Appraising & Developing Managerial Performance, Academy of HRD, Ahamedabad, 1992 HRM Reviews, ICFAI university press Gupta C.B., Human Resource Management Ascent, The Times of India, East Richard C. Grote, Making performance management work Annual reports of OHPC

WEBSITES www.google.com www.perormancemanagementguide.com www.answer.com www.Cite-Hr.com www.ItsMyAscent.com www.ohpc.com www.businessball.com

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