A PROJECT REPORT ON

A STUDY OF PERFORMANCE APPRAISAL SYSTEM

OF HINDUSTAN AERONAUTICS LIMITED AIRCRAFT DIVISION, NASIK

SUBMITTED TO UNIVERSITY OF PUNE BY S.R.MOUSIMI NAIDU MBA II (2012-2013) METs BHUJBAL KNOWLWDGE CITY INSTITUTE OF MANAGEMENT, NASHIK, MAHARASHTRA, INDIA - 422003

ACKNOWLEDGEMENT

No project of this kind can be possible without the help and significant dialogue with a large number of managers and faculty members.

I am grateful to my research guide, Prof. ZAFAR KHAN for his guidance throughout the project.

I am grateful to Mr.Dilip Sarote, (Chief manager-HR) for his valuable guidance throughout the project.

I am grateful thank Mr. Shankar Narayan, (Dy.General Manager-Training & Development Institute) for his valuable guidance throughout the project.

Several thoughtful managers gave me their perspective and generous support. I would like to place on record my sincere gratitude to Smt.Manisha Vaidya, (Sr. Manager-HR), I got benefited from interaction with all the managers and I would like to thank them all from my bottom of my heart for their help and support.

Finally, a note of appreciation to every person who has played a part in the successful completion of the project.

MOUSIMI NAIDU

DECLARATION
I hereby declare that the information, Photographs, Data etc. gathered during the training period (project period) shall be strictly utilized only for the purpose of Project Report work. This Project report is a part of the partial fulfillment of Degree in Master of Business Administration (MBAII) at MET INSTITUTE OF MANAGEMENT for the Session: 201213 under University of Pune.

I honestly state that the intention of collection of the information in my project report is solely for the purpose of academic study, not for commercial purpose or any means. My sole and sincere motive is to learn the procedure practically and express my views by preparing Project Report.

Thus the sole and honest objective for collecting the information is only for the academic purpose and I assure that collected information will be restricted only for Project Report.

MOUSIMI NAIDU

PREFACE
Managing human resources in todays dynamic environment is becoming more and more complex as well as important. Recognition of people as a valuable resource in the organization has led to increased trends in employee maintenance, job security, etc. This research project deals with A Study Of Performance Appraisal System carried out At Hindustan Aeronautics Ltd., Ojhar, Nasik. In this report, the effectiveness of performance appraisal system as it is carried out in the company has been studied & evaluated.

The first section of the report deals with a detailed company profile. It includes the companys history: its activities and operations, organizational structure, etc. This section attempts to give detailed information about the company and the nature of its functioning.

The second section deals with the concept of performance appraisal. This section provides a brief conceptual explanation to performance appraisal. It contains the definition, process and significance of performance appraisal.

In the third section, the research study conducted to evaluate the process of performance appraisal at Hindustan Aeronautics Ltd., Ojhar, Nasik has been included. This section also contains the researchers findings, conclusions, suggestions and feedback.

The fourth and final section of this report consists of extra information that is related to the main contents of the report. These annexure include some graphs and diagrams relating to the company, graphs relating to the research study and important documents upon which the project is based.

INDEX

Sr.No.

Particular Title Page Certificate of the Institute Certificate of The Organization Acknowledgement Index List of Table List of Graphs Preface

1 2 3

Chapter 1 : Introduction of the Subject Chapter 2 : Profile of the Organization Chapter 3: Research Methodology Objective of Project, Research Methodology, Scope & Limitation of Project

4 5 6

Chapter 4 :Data Presentation & Data Collection Chapter 5: Data Analysis and Interpretation Chapter 6: Findings & Conclusion Appendices : a. Questionnaire b. Glossary of Terms c. Bibliography/References

1.1 PERFORMANCE APPRAISAL

Introduction:
Differentiation has taken new dimensions in the realm of business. The very term spells the extent of success of the organization. It is what the organization possesses as different from the competition and how these recourses are utilized that determines how fast and far the organization moves. This differences factor is the Human capital of the company. The human capital is, arguably, the differentiating factor of any organization because all other resource can be replicated by other organization. But human resource is an organizations greatest asset because talent through replicable, takes time to master. And it is this first movers advantage that companies take advantage of. People are our most valuable asset is a clich, which no member of any senior management team would disagree with. Yet, the reality for many organizations is that their people remain undervalued, under trained and underutilized. Of all the factors of production, the Human resource forms the crux of the organization-conceiving ideas and giving them shape and life. This factor is of paramount importance because of its innate ability to produce further resources of infinite value, by its abilities. Unlike other resources the human resources, blessed with emotions of satisfaction, gratitude, resentment etc., is unpredictable in behavior. It therefore becomes necessary to provide a congenial work environment and other resources, which facilitate performance, the core of these being the compensation and benefits accorded to him, which provides him a sense of security and satisfaction. Performance Appraisal is the process of assessing the performance and progress of an employee or a group of employees on a given job and his/ their potential for future development. It consists of a formal procedure to evaluate personalities, contributions and potentials of employees. It helps the organization in deciding an employees promotion, transfer, incentives, and pay increase.

Literature Survey
The value of effective performance appraisal systems, and in particular 360 Degree Feedback, to the overall well-being of all organizations is being realized more and more by business leaders.

Multinationals like IBM, HP, L&T, Caterpillar, ABB etc. and Indian companies like Infosys, Wipro, TCS are also following the same trend and they are aligning themselves with the latest as well as effective method of performance appraisal which promises to whip out the biases in the appraisal system if implemented properly and also promises to build a knowledge based work culture that will work unperturbed even if the crucial member/key players of the company resigns. This method approaches to build up a work environment that shifts its focus from individual development to team development. Employees are encouraged to become good team members not to become charismatic leaders.

A classic example of this lies in the fact when the CEO of hp Ms. Flourentina resigned the work culture or the business of the company was not hampered in the slightest fashion. The work flow was smooth and in the ground level officers were not bothered. Back in India when Infosys Mentor Mr. Murthy decided to resign there was no uproar in the IT giant of India and now the company currently runs smoothly under the able leadership of Mr. Nilkeni.

Thus this system provides a unique platform for building up of the employees from the very day they walk in the premises of the company.

Currently our very own HAL is undertaking efforts to implement Lean Initiative across all the divisions. So the same system would eventually also prevail in our company too and thus making the path to take India a step ahead in the business of aviation.

Certainly the hopes are high one day the HAL employees also held up their head high and proudly announce that I am from HAL; like the way the Japanese does by declaring they are from Toyota or Mitsubishi. A culture, where not the state, to which the person belongs, is not the thing to take pride in but the company for which he/she is working.

So in order to understand this culture we started to look at various websites offering insights about the 360 degree performance appraisal system and found a lot and started to realize that a new culture is emerging that may eventually replace the existing system of performance appraisal. In order to get the feel of the same we started researching and Google helped in a big way. The list of the websites, which we surfed and which gave us a lot of inputs are given in the annexure.

Definition:
According to Prof. E.B.Flippo Performance Appraisal defined by, It is a systematic, periodic and so far as humanity possible, an impartial rating of an employees excellence in matters pertaining to his present job and to his potentials for a better job.

Performance Appraisal is the periodic and systematic assessment of the Employees in terms of the performance,aptitude,capabilities and other qualities which are necessary.It is a systematic effort on the part of management and has a linkage with induction,selection,training and provides data to determine promotions,transfers,e.t.c.

CHARACTERISTICS

Performance Appraisal is a process. It is the systematic examination of the strengths and weakness of an employee in terms of his job. It is scientific and objective study. Formal procedures are used in the study. It is an ongoing and continuous process wherein the evaluations are arranged periodically according to a definite plan. The main purpose of Performance Appraisal is to secure information necessary for making objective and correct decision an employee

PROCESS
The process of performance appraisal involves: Establishing performance standards Communicating the Standards Measuring Performance Comparing the actual with the standards

 Discussing the appraisal Decision making

1. ESTABLISHING PERFORMANCE STANDARDS

The first step in the process of performance appraisal is the setting up of the standards, which will be used to as the base to compare the actual performance of the employees. This step requires setting the criteria to judge the performance of the employees as successful or unsuccessful and the degrees of their contribution to the organizational goal and objectives. The standards set should be clear, easily understandable and in measurable terms. In case the performance of the employee cannot be measured, great care should be taken to describe the standards.

2. COMMUNICATING THE STANDARDS

Once set, it is the responsibility of the management to communicate the standards to all the employees of the organization. The employees should be informed and the standards should be clearly explained to them. This will help them to understand their roles and to know what exactly is expected from them. The standards should also be communicated to the appraisers or the evaluators and if required, the standards can also be modified at this stage itself according to the relevant feedback from the employees or the evaluators.

3. MEASURING THE ACTUAL PERFORMANCE

The most difficult part of the Performance appraisal process is measuring the actual performance of the employees, that is, the work done by the employees during the specified period of time. It is a continuous process, which involves monitoring the performance throughout the year. This stage requires the careful selection of the appropriate techniques of measurement, taking care that personal bias does not affect the outcome of the process and providing assistance rather than interfering in an employees work.

4. COMPARING THE ACTUAL WITH THE DESIRED PERFORMANCE

The actual performance is compared with the desired or the standard performance. The comparison tells the deviations in the performance of the employees from the standards

set. The result can show the actual performance being more than the desired performance or, the actual performance being less than the desired performance depicting a negative deviation in the organizational performance. This process is very important.

5. DISCUSSING RESULTS

The result of the appraisal is communicated and discussed with the employees on oneto-one basis. The focus of this discussion is on communication and listening. The results, the problems and the possible solutions are discussed with the aim of problem solving and reaching consensus. The feedback should be given with a positive attitude as this can have an effect on the employees future performance. The purpose of the meeting should be to solve the problems faced and motivate the employees to perform better.

6. DECISION MAKING

The last step of the process is to take decisions, which can be taken either to improve the performance of the employees, take the required corrective actions, or the related HR decisions like rewards, promotions, demotions, transfers etc.

GOAL OF THE PERFORMANCE APPRAISAL SYSTEM:

Job relatedness Highlighting the critical areas instrumental for job success Clear understanding by Appraiser & Appraisee Confronting to per-decided standards Identifying and Utilizing Dependable Measures

LIMITATIONS Errors in Rating Lack of reliability Negative approach Multiple objectives

 Lack of knowledge

METHODS OF PERFORMANCE APPRAISAL

The foregoing list of major program pitfalls represents a formidable challenge, even considering the available battery of appraisal techniques. But attempting to avoid these pitfalls by doing away with appraisals themselves is like trying to solve the problems of life by committing suicide. The more logical task is to identify those appraisal practices that are (a) most likely to achieve a particular objective and (b) least vulnerable to the obstacles already discussed.

FEATURES OF PERFORMANCE APPRAISAL: Performance Appraisal is not only a technique or method but also is a systematic and continuous Process. In Performance Appraisal, periodic and systematic assessment of employees performance is done. This technique is used by the management to make fair and impartial analysis of the value of employees. In the process of performance appraisal, efforts are made to bring an uniformity while appraising the job performance of the employees working in an organization.

With out assessing the performance of employees the organization can not identify its most potential human resources. The employees can be rewarded for the achievement of goals only by using this function of performance appraisal. The employees in the organization who are under performing can also be improved by using performance appraisal. That is why the study on performance appraisal is selected for conducting research.

PURPOSE OF PERFORMANCE APPRAISAL:

To evaluate an employee according to some standards. Find out the strength and weakness inside the employee. To provide training or reward according the appraisal. For continuous improvement, mentoring so that increased total output of an employee.

FIG.: METHODS OF PERFORMANCE APPRAISAL

METHODS OF PERFORMANCE APPRAISAL

Traditional Methods

Modern Methods

Essay Appraisal Field Review Forced-Choice Rating Management By Objectives

Assessment
Graphic Rating Scale Ranking Methods centre 360appraisal

system

Traditional Methods: (i) Essay Methods: In its simplest form, this technique asks the rater to write a paragraph or more covering an individual's strengths, weaknesses, potential, and so on. In most selection situations, particularly those involving professional, sales, or managerial positions, essay appraisals from former employers, teachers, or associates carry significant weight.

(ii) Field Review: The field review is one of several techniques for doing this. A member of the personnel or central administrative staff meets with small groups of raters from each supervisory unit and goes over each employee's rating with them to (a) identify areas of interrater disagreement, (b) help the group arrive at a consensus, and (c) determine that each rater conceives the standards similarly.

(iii) Forced - Choice rating Like the field review, this technique was developed to reduce bias and establish objective standards of comparison between individuals, but it does not involve the intervention of a third party . (iv) Graphic Rating Scale: This technique may not yield the depth of an essay appraisal, but it is more consistent and reliable. Typically, a graphic scale assesses a person on the quality and quantity of his work (is he outstanding, above average, average, or unsatisfactory?) and on a variety of other factors that vary with the job but usually include personal traits like reliability and cooperation. It may also include specific performance items like oral and written communication.

(v) Ranking methods For comparative purposes, particularly when it is necessary to compare people who work for different supervisors, individual statements, ratings, or appraisal forms are not particularly useful. Instead, it is necessary to recognize that comparisons involve an overall subjective judgment to which a host of additional facts and impressions must somehow be added. There is no single form or way to do this.

The best approach appears to be a ranking technique involving pooled judgment. The two most effective methods are alternation ranking and paired comparison ranking. Alternation ranking: Ranking of employees from best to worst on a trait or traits is another method for evaluating employees. Since it is usually easier to distinguish between the worst and the best employees than to rank them, an alternation ranking method is most popular. Here subordinates to be rated are listed and the names of those not well enough to rank are crossed. Then on a form as, the employee who is highest on the characteristic being measured and the one who is the lowest are indicated. Then chose the next highest and the next lowest, alternating between highest and lowest until all the employees to be rated have been ranked. 2. Paired-comparison ranking: This technique is probably just as accurate as alternation ranking and might be more so. But with large numbers of employees it becomes extremely time consuming and cumbersome. Both ranking techniques, particularly when combined with multiple rankings (i.e., when two or more people are asked to make independent rankings of the same work group and their lists are averaged), are among the best available for generating valid order-of-merit rankings for salary administration purposes.

1.

Modern Methods:

(i) Management by objectives To avoid, or to deal with the feeling that they are being judged by unfairly high standards, employees in some organizations are being asked to set - or help set - their own performance goals. Within the past five or six years, MBO has become something of a fad and is so familiar to most managers.

Define Organizational goals Performance appraisal Define Departmental goals

Provide Feedback

Define Employee Objective goals

Continuous Monitoring

Definr Expected Result

(ii) Assessment centers In any placement decision and even in promotion decisions, some prediction of future performance is necessary. Assessment Center involves a battery of tests facilitating the wholesome evaluation of an individual. It is a multi-rater system in which multiple assessors evaluate an individual based on various tests. At the end of the tests, the assessors discuss amongst themselves the performance of the individual and arrive at a consensus as his potential. (iii) 360o Feedback Many firms have expanded the idea of upward feedback into what is called the 360degree feedback. The feedback is generally used for training and development, rather than for pay increases. Most 360 Degree Feedback systems contain several common features. Appropriate parties i.e. peers, supervisors, subordinates and customers, for instance complete survey, questionnaires on an individual. 360 degree feedback is also known as the multi-rater feedback, whereby ratings are not given just by the immediate manager up in the organizational hierarchy, but also by peers and subordinates. Appropriates customer ratings 6 are also included along with the element of self-appraisal. Once gathered in, the assessment from the various quarters are compared with one another and the results communicated to the manager

Fig.1. Concept of 360-degree performance appraisal

Superior

External customer

Internal customer

Self

Peer

Subordinate

Another technique that is useful for coaching purposes is, of course, MBO. Like the critical incident method, it focuses on actual behavior and actual results, which can be discussed objectively and constructively, with little or no need for a supervisor to "play God."

Benefits of Performance Appraisals

1. Measures an employees performance. 2. Helps in clarifying, defining, redefining priorities and objectives. 3. Motivates the employee through achievement and feedback. 4. Facilitates assessment and agreement of training needs. 5. Helps in identification of personal strengths and weaknesses. 6. Plays an important role in Personal career and succession planning. 7. Clarifies team roles and facilitates team building. 8. Plays major role in organizational training needs assessment and analysis. 9. Improves understanding and relationship between the employee and the reporting manager and also helps in resolving confusions and misunderstandings. 10. Plays an important tool for communicating the organizations philosophies, values, aims, strategies, priorities, etc among its employees.

11. Helps in counseling and feedback.

Rating Errors in Performance Appraisals:

Performance appraisals are subject to a wide variety of inaccuracies and biases referred to as 'rating errors'. These errors can seriously affect assessment results. Some of the most common rating errors are:

Leniency or severity:

Leniency or severity on the part of the rater makes the assessment subjective. Subjective assessment defeats the very purpose of performance appraisal. Ratings are lenient for the following reasons: a) The rater may feel that anyone under his or her jurisdiction who is rated unfavorably will reflect poorly on his or her own worthiness.

b) He/ She may feel that a derogatory rating will be revealed to the rate to detriment the relations between the rater and the rate.

c) He/ She may rate leniently in order to win promotions for the subordinates and therefore, indirectly increase his/her hold over him.

Central tendency:

This occurs when employees are incorrectly rated near the average or middle of the scale. The attitude of the rater is to play safe. This safe playing attitude stems from certain doubts and anxieties, which the raters have been assessing the rates.

Halo error:

A halo error takes place when one aspect of an individual's performance influences the evaluation of the entire performance of the individual. The halo error occurs when an employee who works late constantly might be rated high on productivity and quality of output as well as on motivation. Similarly, an attractive or popular personality might be

given a high overall rating. Rating employees separately on each of the performance measures and encouraging raters to guard against the halo effect are the two ways to reduce the halo effect.

Rater effect:

This includes favoritism, stereotyping, and hostility. Extensively high or low score are given only to certain individuals or groups based on the rater's attitude towards them and not on actual outcomes or behaviors; sex, age, race and friendship biases are examples of this type of error.

Primacy and Regency effects:

The rater's rating is heavily influenced either by behavior exhibited by the ratee during his early stage of the review period (primacy) or by the outcomes, or behavior exhibited by the ratee near the end of the review period (regency). For example, if a salesperson captures an important contract/sale just before the completion of the appraisal, the timing of the incident may inflate his or her standing, even though the overall performance of the sales person may not have been encouraging. One way of guarding against such an error is to ask the rater to consider the composite performance of the rate and not to be influenced by one incident or an achievement.

Performance dimension order:

Two or more dimensions on a performance instrument follow each other and both describe or rotate to a similar quality. The rater rates the first dimensions accurately and then rates the second dimension to the first because of the proximity. If the dimensions had been arranged in a significantly different order, the ratings might have been different.

Spillover effect: -

This refers to allow past performance appraisal rating to unjustifiably influence current ratings. Past ratings, good or bad, result in similar rating for current period although the demonstrated behavior does not deserve the rating, good or bad.

Sukoi-30 MK1

HAL GLIMPSES:
FOUNDER:
Late seth Walchand Hirachand

CHAIRMAN:
Shri R.K Tyagi

MANAGING DIRECTOR:
Shri P V Deshmukh

HR EXECUTIVE DIRECTOR:
Shri. T Sudhakar Rao

OUR MISSION

To become a globally competitive aerospace industry while working as an instrument for achieving self-reliance in design, manufacture and maintenance of aerospace defence equipment and diversifying to related areas, managing the business on commercial lines in a climate of growing professional competence ".
OUR VALUES

CUSTOMER SATISFACTION

We are dedicated to building a relationship with our customers where we become partners in fulfilling their mission. We strive to understand our customers ' needs and to deliver products and services that fulfill and exceed all their requirements.

COMMITMENT TO TOTAL QUALITY

We are committed to continuous improvement of all our activities. We will supply products and services that conform to highest standards of design, manufacture, reliability, maintainability and fitness for use as desired by our customers.

COST AND TIME CONSCIOUSNESS

We believe that our success depends on our ability to continually reduce the cost and shorten the delivery period of our products and services. We will achieve this by eliminating waste in all activities and continuously improving all processes in every area of our work.
INNOVATION AND CREATIVITY

We believe in striving for improvement in every activity involved in our business by pursuing and encouraging risk-taking, experimentation and learning at all levels within the company with a view to achieving excellence and competitiveness

TRUST AND TEAM SPIRIT

We believe in achieving harmony in work life through mutual trust, transparency, co-operation, and a sense of belonging. We will strive for building empowered teams to work towards achieving organisational goals

RESPECT FOR THE INDIVIDUAL

We value our people. We will treat each other with dignity and respect and strive for individual growth and realisation of everyone's full potential.

INTEGRITY:

We believe in a commitment to be honest, trustworthy and fair in all our dealings. We commit to be loyal and devoted to our organisation. We will practise self discipline and own responsibility for our actions. We will comply with all requirements so as to ensure that our organisation is always worthy of trust.

HISTORY OF THE COMPANY

Hindustan Aeronautics Limited (HAL) came into existence on 1st October 1964. The Company was formed by the merger of Hindustan Aircraft Limited with Aeronautics India Limited and Aircraft Manufacturing Depot, Kanpur.

The Company traces its roots to the pioneering efforts of an industrialist with extraordinary vision, the late Seth Walchand Hirachand, who set up Hindustan Aircraft Limited at Bangalore in association with the erstwhile princely State of Mysore in December 1940. The Government of India became a shareholder in March 1941 and took over the Management in 1942.

Today, HAL has 19 Production Units and 9 Research and Design Centres in 7 locations in India. The Company has an impressive product track record - 12 types of aircraft manufactured with in Hindustan Aeronautics Limited (HAL) came into existence on 1st October 1964. The Company was formed by the merger of Hindustan Aircraft Limited with Aeronautics India Limited and Aircraft Manufacturing Depot, Kanpur.

The Company traces its roots to the pioneering efforts of an industrialist with extraordinary vision, the late Seth Walchand Hirachand, who set up Hindustan Aircraft Limited at Bangalore in association with the erstwhile princely State of Mysore in December 1940-house R & D and 14 types produced under license. HAL has manufactured over 3550 aircraft , 3600 engines and overhauled over 8150 aircraft and 27300 engines.

HAL has been successful in numerous R & D programs developed for both Defence and Civil Aviation sectors. HAL has made substantial progress in its current projects:

Dhruv, which is Advanced Light Helicopter (ALH) Tejas - Light Combat Aircraft (LCA) Intermediate Jet Trainer (IJT) Various military and civil upgrades.

Dhruv was delivered to the Indian Army, Navy, Air Force and the Coast Guard in March 2002, in the very first year of its production, a unique achievement.

Space Programs

HAL has played a significant role for India's space programs by participating in the Manufacture of structures for Satellite Launch Vehicles like:

PSLV (Polar Satellite Launch Vehicle) GSLV (Geo-synchronous Satellite Launch Vehicle) IRS (Indian Remote Satellite) INSAT (Indian National Satellite)

Joint Ventures

HAL has formed the following Joint Ventures (JVs): BAeHAL Software Limited Indo-Russian Aviation Limited (IRAL) Snecma HAL Aerospace Pvt Ltd SAMTEL HAL Display System Limited HALBIT Avionics Pvt Ltd HAL-Edgewood Technologies Pvt Ltd INFOTECH HAL Ltd

Apart from these seven, other major diversification projects are Industrial Marine Gas Turbine and Airport Services. Several Co-production and Joint Ventures with international participation are under consideration.

HAL's supplies / services are mainly to Indian Defence Services, Coast Guards and Border Security Forces. Transport Aircraft and Helicopters have also been supplied to Airlines as well as State Governments of India. The Company has also achieved a foothold in export in more than 30 countries, having demonstrated its quality and price competitiveness.\

HAL has won several International & National Awards for achievements in R&D, Technology, Managerial Performance, Exports, Energy Conservation, Quality and Fulfillment of Social Responsibilities. HAL was awarded the INTERNATIONAL GOLD MEDAL AWARD for Corporate Achievement in Quality and Efficiency at the International Summit (Global Rating Leaders 2003), London, UK by M/s Global Rating, UK in conjunction with the International. HAL was presented the International - ARCH OF EUROPE Award in Gold Category in recognition for its commitment to Quality, Leadership, Technology and Innovation . At the National level, HAL won the "GOLD TROPHY" for excellence in Public Sector Management, instituted by the Standing Conference of Public Enterprises (SCOPE).

The Company scaled new heights in the financial year 2006-07 with a turnover of Rs.7, 783.61 Crores.

COMPANY OVERVIEW: HAL is a NAVRATNA public sector undertaking fully owned by the government of India. 19 production units, 10 R&D centres, 33000 employees, ISO-9001, AS-9100, NADCAP certifications. Company Turnover is RS.14,001cr 2011-12. PBT: 3200cr. 36th rank among Global Aerospace Companies. The company is managed by Board of Directors which has a full time chairman and Board is autonomous. Appointments of chairman and directors are made by government of India through PESB (public enterprise selection board). There are three division of HAL Nasik : AMD(Aircraft Manufacturing Division). AOD(Aircraft Overhaul Division). AURDC(Aircraft Upgradation Research and DevelopmentCenter

So far the Division has manufactured more than 700 aircraft and overhaul more than 1300 aircraft. With the expertise gained over the last 3 decades, the division has already made its presence felt in the global market and is fully geared up for meeting any challenging task in the domestic and the international market.

CORE BUSINESS OF HAL:

Design and development of fixed and rotary wing aircraft, avionics and accessories. Manufacture,maintainence,repair amd overhaul of: Fighters,transport and trainer aircraft helicopters. Aeroengines. Avionics. Accessories. Ground support equipment. Aircraft mid life upgrade programmes. CURRENT ACTIVITIES IN HAL: MIG 21(Interceptor). MIG 27(Bomber). Su -30 Aircraft product in Nashik: MIG 21E7FI-264. MIG 21E7FI-196 MIG 21BIS-290. MIG trainer 21. MIG 27-M-105. Su-30MKI-140(UNDER PROGRESS). COMPLETED

DEPARTMENTS AT HAL NASHIK DIVISION:

Personnel and Administration. Security, Viglance and fire services. Purchase and stores. Integrated Material Management. Finance, PF and Payroll. Transport. Township administration

CORPORATE ORGANISATION

CHAIRMAN

BUSINESS DIRECTORS (5)

Banglore Complex (MD)

MIG Complex (MD)

Helicoptor Complex (MD)

Accessorie s Complex (MD)

Design Complex (Director )

FUNCTIONAL DIRECTORS(3)

CORPORATE PLG & MKTG (DIRECTOR) Planning Projects. Marketing. Quality. Customer Services. Mgt Services & IT.

FINANCE (DIRECTOR)

HR (DIRECTOR)

Finance. IMM. Company sec.

HR HMA Lean.

PROMOTERS:
The HAL promoters are Government Of India.

PRODUCTS AND SERVICES:The following are the products manufactured by HAL:

DIVISIONS:

FINANCIAL HIGHLIGHTS 2011-12:

Hindustan Aeronautics Limited (HAL) a Navratna Defence Public Sector Unit has declared an impressive financial performance for the year 2011-12. The provisional financial results are - Sales for the year 2011-12 is Rs.14,001 Crores registering a growth of 6.74 % over the previous year, Profit Before Tax (PBT) for the year is at Rs.3,200 Crores.

An Interim Dividend of Rs.747.70 Crores has been paid for the year 2011-12, which is 620 % of the paid-up capital. The Company for the 11th year running has met all the targets set in Excellent category in respect of the MOU concluded with the Government of India, for the year 2011-12.

The highlights of major achievements during the year are:

All flight trials for Turrent Gun and Rocket have been completed for the ALH-WSI, which marks a significant milestone towards certification.

Light Combat Aircraft (Tejas) LSP-7, flew its maiden flight and LSP-7 will be offered to IAF for user evaluation trials.

First flight of Light Combat Helicopter (TD-2) was carried out. It is built with weight reduced parts, optimized transmission system and incorporates several improvements based on flight evaluation of TD-1.

Detailed design and analysis of structural parts of Light Utility Helicopter (LUH) has been completed. HAL has bagged Raksha Mantris Excellence in Performance Award for the year 2009-10. Three quality circle teams from HAL have won two gold and one distinguished awards in International Convention on Quality Control Circles (ICQCC 2011), held in Japan.

ORGANISATION FLOW CHART AIRCRAFT DIVISION, NASIK

Managing Director (MiG Complex) (For Nasik) General Manager (Gd. IX) GM (AURDC) GM (AOD) GM (AMD)

Additional General Manager (Gd. VIII) Deputy General Manager (Gd. VII)

Chief Manager (Gd. VI)

Senior Manager (Gd. V)

Manager (Gd. IV)

Deputy Manager (Gd. III)

Officer/Engineer (Gd. II)

Asst Officer/Engineer (Gd. I )

DEPARTMENTAL ORGANIZATION CHART

Head of HR Deptt. (O) Chief Manager HR(O)

Performance Management / Employee Relation Management

Employee Relation Management

Facility Management (Public Relations & Printing press)

Facility Management (Transport)

Sr.ManagerHR(PM/ERM)

Sr.ManagerHR(ERM)

Officer-HR (FM)PRO

ManagerHR(FM)

Officer (Printing press)

Dy.ManagerHR(FM)

REPORTING PATTERN OF AIRCRAFT OVERHAUL DIVISION, NASIK

Daljeet Singh GM(AOD)

B S Sarkar AGM (PO)

S Rajendran AGM (O)

V S Srinivas DGM (PO)

P B Joshi DGM (O)

H L Suryaprakash DGM (Q)

P G Sastry DGM(Rtbl)

C Mandal DGM(Prdn)

Gp. Capt.(Retd.) V. G Deodhar DGM (CS)

R M Sitharam DGM (OS)

Gp.Capt.(Retd.) R S Apte DGM (ATC)

D Maiti DGM (Prj)

Gp.Capt. KD Bhat CTP

AIRCRAFT OVERHAUL DIVISION ,NASHIK

QUALITY POLICY:-

HAL,AOD-Nashik is committed to establish and maintain a quality management system for repair, overhaul ,design upgradation of fighter aircraft and aircraft component that implied needs of customer to delight customer by ensuring timely delivery ,cost effectiveness and quality of product through continual improvements in its business processes.

QUALITY OBJECTIVES: Understanding and satisfying the stated and implied needs of the customers. Adopt appropriate solutions for continual product and process improvement to meet the everchanging needs of customers. To improve outsourcing by developing ve3ndors to meet the customer requirenments. To progressively decrease the quantum of import by indigenizing more and more critical and standard parts.

DESIGNATION TYPES:
There are two types: Employees

Officers.

Designation for employees:

SCALE
S11 S10 S9 S8 S7 S6 S5 S4 S2 S1

DESIGNATION NAMES
Senior chief supervisor Chief supervisor Senior master Assistant supervisor Highly skilled technician or Senior assistant Assistant or Senior technician Assistant B or technician Junior Assistant Junior Attendant Helper

Designation for officers:

GRADE
G9 G8 G7 G6 G5 G4 G3 G2 G1

DESIGNATION NAMES
General Manager Additional General Manager Deputy General Manager Chief Manager Senior Manager Manager Deputy Manager Engineer or Officer Assistant Engineer

FUNCTION OF THE HUMAN RESOURCE DEPARTMENT IN NASHIK DIVISION:

HR Depatment implements the directives regarding policies and procedures contained in various Personnel Circulars/Personnel Bulletins issues by HAL Corporate Office. The Personnel Manual consists of eight volumes and is used as reference Manual and is identified by the issue number and date of amendment. Human Resource Department in Hindustan Aeronautics Limited,Nashik Division is divided into five categories. They are as given below:

Employee Relation Management

Performance Management

Facility Mnagement

Talent Management

HUMAN RESOURCE MANAGEMNT FUNCTIONS

Talent Acquistion

PERFORMANCE APPRAISAL CYCLE OF HAL

HRD CELLS OF DIVISION i) Make available sufficient copies of quarterly task setting & assessment sheet To all department. Ii) Handover the performance appraisal report format to the appraise by 20th mar of performance year. iii) Receive the filled up performance appraisal report of the previous year by 25th April. iv) Forward report of officers in grades V & above to the complex/corporate office by 30th April/5th may. v) Convene meeting of performance review board and complete part of the report of 20th may. VI) Communicate feedback if any to the appraise by 31st may. vii) Complete part I of the report.

Assessment by Reviewing Authority by 20th april

Performance Appraisal Cycle

Task setting for the first Quarter by 15th april

Assessment of Fourth Quarter by 7th April & Completion of report by initiating Authority by 10th april. Task setting for the Fourth Quarter and assessment of Third Quarter by 7th jan

Task setting for the Second Quarter and assessment of First Quarter by 7th july.

Task setting for the Third Quarter and assessment of Second Quarter by 7th oct.

LIGHT COMBAT AIRCRAFT (LCA) (Tejas)

OBJECTIVES OF THE STUDY The following are the objectives of the study: 1. To understand the procedure of performance appraisal followed in HAL. 2. To understand Employees attitude towards the present appraisal system. 3. To ascertain how effective the current appraisal system is in a) Enhancing productivity b) Attaining corporate standards 4.To suggest measures to positively develop the process of performance appraisal.

RESEARCH METHODOLOGY:
Research methodology is the process of systematic & in depth study of search for any particular topic. Subject of the investigation based by collection, completion, presentation & interpretation of relevant details. It helps to presentation of data in correct manner & in right quality & quantity. Without using research methodology the project report can not be done.

Definition:Research is defined as, a careful investigation or enquiry especially through search for new facts in any branch of knowledge.

Data collection method is very useful in conducting research. It is depending on the stheirces. Statistical data are classified under two categories.

Methods of Data Collection

Primary Data Collection

Secondary Data Collection

1.Primary Data
Primary data are obtained by study specifically designed to fulfill the data needs of the problems at hand.Such data are original in character & are generated in large number of surveys. Primary data are those which are collected for specified objectives directly from the field of enquiry & are original in nature. The collection of primary data is laborious & involves huge time & is generally beyond the scope of an individual.

Example: Interview Observation Questionnaire

This project report carries the following actual techniques of collecting primary data. Interview Observation Questionnaire Sample size : 100

2.Secondary Data
Secondary data means data that is already available in various reports, letters, books, periodicals, etc. secondary data is that, which has been used previously for any research & is now in use for the second time. In short, the data presented in research reports when used again for further research is called Secondary Data. Examples:1. Articles 2. Magazines 3. Internet Source 4. Reference Books & Text Books This project report carries the following actual theories of collecting secondary data.

Booklets, pamphlets, magazines of organization. Website of organization. Reference book

SELECTION OF TOPIC:

Performance Appraisal is considered as an indispensable tool for an organization, for the information it provides is highly useful in making decisions regarding various personal aspects such as promotions and merit increases. Performance measures also link information gathering and decision making processes which provide a basis for judging the effectiveness of personnel. If valid performance data is available, timely, accurate, objective, standardize and relevant, management can maintain consistent promotion and compensation policies throughout the organization. Formal performance appraisal plans are designed to meet three needs, one of the organization and other two of the individual.
1. They provide systematic judgments to back up salary increases, transfers, demotions or

terminations.
2. They are means of telling an individual how he is doing and suggesting needed changes

in his behavior attitudes, skills, or job knowledge. They let him know where he stands with the boss.
3. The superior uses them as a base for training and developing the individual.

The growing importance given to the topic of Performance Appraisal, the use of various metrics in performance management and the strategic role the concept of performance appraisal plays in decision making regarding the succession of an organisation have encouraged me o choose this topic for research study.

SCOPE OF THE STUDY

The performance appraisal is emerging as one of the strong tools in the development of human resources. Performance Appraisal system has dual approach namely, Evaluation approach and Development approach. One without the other makes the appraisal ineffective. Since the objectives of the Performance Appraisal system are to enhance effectiveness, potential, development and career stretch of an individual for the management to formulate

HRD programs and to meet the organizational needs, there is a wide scope for study of Performance Appraisal System. In the present competitive scenario it is necessary for any organization to assess the performance of the employees for its future growth and development. The study throws light in understanding the various methods for accessing the performance appraisal of the employees. The company can compete effectively in the market only when it utilizes the available human resources. The human resources can be termed as a human capital. It is a essential for any organization to evaluate the performance of the employees as it is a criteria for promotion and their growth and survivor. This study also focuses to highlight the various strength and weaknesses in the methods of performance appraisal which is currently implementing. The success of any organization clearly signifies by using the statement the right member of employee, right type of employee, employee at right place and employee at right time. It can be revealed only through the performance appraisal. The skills and knowledge possessed by the employees can be determined through this performance appraisal. The company can designed policies and procedures in terms of job description, job specification and job analysis and also called the functions of performance appraisal

LIMITATIONS OF THE STUDY 1.Time frame is too short i.e. only 2 months. It is very difficult to study any process in a large organization in this time frame. 2. Sample size (100) may not be the true representation of the population.

INTERMEDIATE JET TRAINER (IJT)

(i) Primary Data: Questionnaire Observation (ii) Secondary Data: Company Records Internet SAMPLING PLAN: Sampling Technique: Simple Random Sampling Sample Size: 100 Employees Sample Area: Hindustan Aeronautics Ltd., Ojhar, Nasik Duration: Two Months. PROCESS OF PERFROMANCE APPRAISAL SYSTEM FOLLOWED IN HAL HAL follows a two-tier Performance Appraisal system. Initiating Authority and Reviewing Authority are the two parties which appraise the performance of an individual. In HAL, tasks are set on quarterly basis and employees performance is evaluated for the same. Some traits are decided by the company on the basis of which employees are evaluated. At all levels, officers do their self appraisal. Below is the format of Appraisal form.
Table: 2.1 Format of Appraisal form

Part Cover Page Part A Part B Part C Part D Part E Part F Part G Part H Part I

Content Bio Data of the Appraisee Quarterly Task Setting & Assessment Self Appraisal Comments On Self Appraisal Assessment of Traits Qualitative Assessment Appraisee General Assessment & MRC Training & Development Needs Evaluation By PRB Remarks Of Higher Authorities Illustrative Areas Training Check List

To be filled by Appraisee Appraisee & IA Appraisee IA & RA IA & RA IA & RA IA & RA IA & RA PRB. GM/MD/FD/CH HRD Cell

QUARTERLY TASKS AND ACHIEVEMENTS

The most important feature of PAR System is the setting up of Quarterly Tasks jointly by the IA and the Appraisee. These are called Mutually Agreed Tasks. The set tasks are recorded on an Assessment Sheet. Maximum 100 marks are distributed amongst all the tasks on the relative importance. The IA evaluates the performance of the Appraisee by 07th of the first month of the subsequent Quarter. The Quarters for the purpose of PARs are shown in the following table:

QUARTERS I II III IV

PERIOD 1 APRIL TO 30TH JUNE 1ST JULY TO 30TH SEPTEMBER 1ST OCTOBER TO 31ST DECEMBER 1ST JANUARY TO 31ST MARCH
ST

Table: 2.2 DETAILS OF QUARTERS FOR PA

SELF APPRAISAL All officers are required to assess themselves in part B of the Appraisal form. In this, they get the opportunity to assess their performance against mutually agreed tasks. The IA and RA have to comment on the self-appraisal done by officers. LEVELS OF INITIATING / REVIEWING AUTHORITY(IA/RA) To appraise the appraisee, different levels of Initiating and Reviewing authority have been appointed.

Table: 2.3. LEVELS OF INITIATING / REVIEWING AUTHORITY Grade of Appraisee Initiating Authority Reviewing Authority Min. Grade III or Above Min. Grade V or Above. I / II Min. Grade V or Above Min. Gr. VI or Above. III / IV Min. Grade VII or Above Min. Grade VIII or Above. V / VI Min. Grade IX or Above Min. Grade IX or Above. VII / VIII MD / FD CH IX / X ASSESSMENT OF TRAITS Separate sets of traits are provided to different levels of officers and different weightage is assigned to these traits based on the level of the officer to be evaluated.

The traits are graded on a scale of five. The details of traits for various levels of officers are shown in the following table:

Table: 2.4. TRAITS FOR VARIOUS LEVELS OF OFFICERS

LEVEL Level I (Grade I/ II) TRAITS Job Knowledge: Extent of theoretical knowledge and practical know-how as related t assigned tasks; related/ allied jobs and knowledge of current development in his own field. Quality of work: General excellence of output, methods and systems. Man management: Ability to ensure optimum utilization of manpower 29towards target fulfillment. Punctuality and Attendance: General discipline in adhering to work timings and attendance. Level II (Grade III / IV) Job knowledge: Extent of theoretical knowledge and practical know-how as related to assigned tasks related / allied jobs and knowledge of current development in his own field. Planning and coordination: Ability to meticulously plan his job and effectively coordinate with his team members in achievement of common organizational goals. Quality of work: General excellence of output, methods and systems. Developing subordinates: Ability to interact, guide, counsel and nurture subordinates with a view not only to help them to perform their present job effectively but also to groom them for meeting greater responsibility/ challenge. Potential to shoulder higher responsibilities: Ability to take up higher level responsibility and set pace for the team member towards goal achievement. Level III (Grade V/ VI) Professional competence: Functional, managerial ability in application of job knowledge to set perspective plan and fulfillment of the same with optimum use of resources. Quality consciousness: General excellence of the work/ job executed. Efforts to achieve quality improvement plan and strive for higher standards. Cost and Time consciousness: Utilization of resources effectively, ensuring required tolerance/ quality within optimum time and minimum cost. Developing subordinates: Ability to interact, guide, counsel and nurture

subordinates with a view not only to help them to perform their present job effectively but also to groom them for meeting greater responsibility/ challenge. Team building: Ability to interact, command and influence people with a view t have cohesiveness amongst them to ensure thrust in the direction of achievement of targets. Potential to shoulder higher responsibilities: Ability to take up higher level responsibility and set pace for the team member towards goal achievement. Professional competence: Functional, managerial ability in application of job Level IV (Grade VII/ knowledge to set perspective plan and fulfillment of the same with optimum VIII) use of resources. Quality consciousness: General excellence of the work/ job executed. Efforts to achieve quality improvement plan and strive for higher standards. Cost and Time consciousness: Utilization of resources effectively, ensuring required tolerance/ quality within optimum time and minimum cost. Customer satisfaction: Ability to fulfill the needs of both internal and external customers of his position. Time management: Productive and effective use of available time. Developing subordinates: Ability to interact, guide, counsel and nurture subordinates with a view not only to help them to perform their present job effectively but also to groom them for meeting greater responsibility/ challenge. Team building: Ability to interact, command and influence people with a view t have cohesiveness amongst them to ensure thrust in the direction of achievement of targets. Potential to shoulder higher responsibilities: Ability to take up higher level responsibility and set pace for the team member towards goal achievement. Level V (Grade IX/ X) Professional competence: Functional, managerial ability in application of job knowledge to set perspective plan and fulfillment of the same with optimum use of resources. Quality consciousness: General excellence of the work/ job executed. Efforts to achieve quality improvement plan and strive for higher standards. Cost and Time consciousness: Utilization of resources effectively, ensuring required tolerance/ quality within optimum time and minimum cost. Customer satisfaction: Ability to fulfill the needs of both internal and

external customers of his position. Time management: Productive and effective use of available time. Developing subordinates: Ability to interact, guide, counsel and nurture subordinates with a view not only to help them to perform their present job effectively but also to groom them for meeting greater responsibility/ challenge. Team building: Ability to interact, command and influence people with a view t have cohesiveness amongst them to ensure thrust in the direction of achievement of targets. Potential to shoulder higher responsibilities: Ability to take up higher level responsibility and set pace for the team member towards goal achievement. Man management: Ability to ensure optimum utilization of manpower towards target fulfillment. Management of external environment: Ability to deal with external agencies towards building image of the company.

Table: 2.4. TRAITS FOR EMPLOYEES Achievement of Task Assigned: Level of accomplishment of assigned
tasks: IA to monitor Tasks assigned during the Appraisal Year so as to ascertain achievements.

Average Individual Incentive Efficiency: IA must award Marks based on the average individual efficiency of the workman. Attendance & Punctuality: General discipline in adhering to work timings and attendance. IA/RA should also take into consideration the number of days on which the workman has been on LWP total working days of the Division/Office during the Appraisal year. Quality & Reliability: General excellence of output, methods and systems tems.Efforts to achieve quality improvement plan to strive for higher standards. Conduct & Discipline: General behavior, conduct and Discipline of the workplace, IA/RA while awarding marks should consider issuance of charge sheet/initiation of disciplinary action, punishments imposed e.t.c. House Keeping: Level of standards of housekeeping at work place. Job Knowledge: Extent of theoretical knowledge and practical know

how as related to assigned tasks. Any outstanding work done during the Period (Suggestions,Innovation,Initiative e.t.c): Marks awarded based on the number of suggestions made e.t.c.

Table: 2.5. DISTRIBUTION OF MARKS FOR EACH TRAIT. GRADE I & II 80 5 5 5 5 GRADE III & IV 75 5 5 _ _ 5 _ _ _ _ _ _ _ _ Total 100 5 5 _ _ _ _ _ _ 100 5 5 5 5 5 5 _ _ 100 5 5 5 5 5 5 5 5 100 GRADE V & VI 70 _ _ _ _ GRADE VII & VIII 60 _ _ _ _

TRAITS Performance Job Knowledge Quality of Work Man Management Punctuality & Attendance Planning & Coordination Developing Subordinate Potential to shoulder higher responsibilities Professional Competence Quality Consciousness Cost & time consciousness Team building Customer Satisfaction Time Management

Scale of Gradation Total Marks 100-90 Performance Rating

89-80

79-50 Average

Below 50 Below Average

Exceptional Above Average

LIGHT UTILITY HELICOPTER (LUH)

1. The Performance Appraisal System followed in the company is known to me?

NO

OPINION

1 2 3 4 5

Strongly Agree Agree Neutral Disagree Strongly disagree

RESPONDENTS 55 36 3 0 6

PERCENTAGE 55 36 3 0 6

55

36

3 Strongly Agree Agree

6 0 Strongly Disagree

No opinion Disagree

INFERENCE:
From the graph, we can see that 55% people are strongly agree with the statement 36% are agreeing means they are aware about the PA system followed in HAL. 3% have no opinion about the statement. 6 % people strongly disagree with the statement i.e. they are not aware about the PA system.

2. I am aware of the objectives of Performance Appraisal system practiced in the company

NO

OPINION

1 2 3 4 5

Strongly Agree Agree Neutral Disagree Strongly disagree

RESPONDENTS 44 43 5 0 8

PERCENTAGE 44 43 5 0 8

44

43

5 0 Strongly Agree Agree No opinion Disagree

Strongly Disagree

INFERENCE:
44% people know the objective of PA, they are strongly agree with the statement. 43% people are agreeing with the statement. 5% have no opinion about the statement. 8% are strongly disagreeing with the statement, i.e. they dont the objective of the PA.

3. I am aware of what is expected out of my job

NO

OPINION

1 2 3 4 5

Strongly Agree Agree Neutral Disagree Strongly Disagree

RESPONDENTS 53 38 6 0 3

PERCENTAGE 53 38 6 0 3

Disagree 0%

Strongly Disagree 3%

Strongly Agree 53%

Neutral 6%

Agree 38%

INFERENCE: 91% people are well aware about their job responsibility. 3% people are strongly disagreeing with the statement. 6% have no opinion about the statement

4. The performance appraisal systems help in improving employees efficiency.

NO

OPINION

1 2 3 4 5

Strongly Agree Agree Neutral Disagree Strongly Disagree

RESPONDENTS 30 43 16 9 2

PERCENTAGE 30 43 16 9 2

Disagree 9%

Strongly Disagree 2%

Strongly Agree 30%

Neutral 16%

Agree 43%

INFERENCE: 73% people think that PA is beneficial in improving employees efficiency. 16% people have no opinion about the statement. 11% think that PA is not beneficial in improving the efficiency of employees.

5. Performance appraisal is a motivational tool used by the organization.

NO

OPINION

1 2 3 4 5

Strongly Agree Agree Neutral Disagree Strongly Disagree

RESPONDENTS 30 46 9 11 4

PERCENTAGE 30 46 9 11 4

Disagree 11%

Strongly Disagree 4%

Strongly Agree 30%

Neutral 9% Agree 46%

INFERENCE: 76% people think PA as an important motivational tool. 14% are in opposition to the statement. 9% dont have any opinion.

6. Training needs of employees are identified during performance appraisal.

NO

OPINION

1 2 3 4 5

Strongly Agree Agree Neutral Disagree Strongly Disagree

RESPONDENTS 20 45 11 16 8

PERCENTAGE 20 45 11 16 8

Disagree 16%

Strongly Disagree 8%

Strongly Agree 20%

Neutral 11%

Agree 45%

INFERENCE: 65% people consider PA as a tool to identify training needs. 24% people dont consider PA as a tool to identify training needs. 11% dont have any opinion about the statement.

7. After performance appraisal, company provides necessary training. NO OPINION RESPONDENTS 9 27 23 29 12 PERCENTAGE 9 27 23 29 12

1 2 3 4 5

Strongly Agree Agree Neutral Disagree Strongly Disagree

INFERENCE: 36% people are agreeing that after PA appropriate training has been given to the employees. 41% people are disagreeing with the statement; they think no training has been given to the employees. 23% people have no opinion about the statement.

8. The Performance Appraisal improving relationship between the Superior & Subordinate.

NO

OPINION

1 2 3 4 5

Strongly Agree Agree Neutral Disagree Strongly Disagree

RESPONDENTS 13 40 31 13 3

PERCENTAGE 13 40 31 13 3

Strongly Disagree 3% Disagree 13%

Strongly Agree 13%

No opinion 31%

Agree 40%

INFERENCE: 53% people think that PA improves Superior- Subordinate relationship. 16% people think that PA doesnt improve Superior- Subordinate relationship. 31% people have no opinion about the statement

9.My immediate Superior conduct periodical performance appraisal.

NO

OPINION

1 2 3 4 5

Strongly Agree Agree Neutral Disagree Strongly Disagree

RESPONDENTS 23 51 12 10 4

PERCENTAGE 23 51 12 10 4

51

23 12 10 4 Strongly Agree Agree No opinion Disagree Strongly Disagree

INFERENCE: 74% people think that immediate superior conducts PA. 14% people think somebody else does the PA. 12% people have no opinion about the statement

9. My superior gives me proper job related guidance from time to time. NO OPINION RESPONDENTS 33 46 9 11 1 PERCENTAGE 33 46 9 11 1

1 2 3 4 5

Strongly Agree Agree Neutral Disagree Strongly Disagree

Strongly Agree 1% 11% 9% 33% Agree No opinion Disagree 46% Strongly Disagree

INFERENCE: 33% people strongly agree that they get proper guidance from their superior for their job. 46% people agree that they get proper guidance from their superior for their job. 12% people dont get proper guidance from their superior. 9% people have no opinion about the statement.

11. Performance appraisal is a lengthy and time consuming activity.

NO OPINION RESPONDENTS 14 24 30 25 7 PERCENTAGE 14 24 30 25 7

1 2 3 4 5

Strongly Agree Agree Neutral Disagree Strongly Disagree

Strongly Agree 7% 25% 24% 14% Agree No opinion Disagree Strongly Disagree

30%

INFERENCE: 38% people think PA as a time consuming process. 32% people think that PA is not time consuming process. 30% people have no opinion about the statement

12. HAL should implement computerized automated performance appraisal system.

NO

OPINION

1 2 3 4 5

Strongly Agree Agree Neutral Disagree Strongly Disagree

RESPONDENTS 51 32 12 1 4

PERCENTAGE 51 32 12 1 4

Disagree No opinion 1% 12%

Strongly Disagree 4%

Agree 32%

Strongly Agree 51%

INFERENCE: 83% people are agreeing that HAL should implement computerized or automated PA form system. 5% people are happy with current form. 12% people have no opinion about the statement.

13. The traits included in the performance appraisal form are insufficient for evaluating employees performance.

NO

OPINION

1 2 3 4 5

Strongly Agree Agree Neutral Disagree Strongly Disagree

RESPONDENTS 24 34 19 19 4

PERCENTAGE 24 34 19 19 4

Strongly Disagree 4% Disagree 19% Neutral 19%

Strongly Agree 24%

Agree 34%

INFERENCE: 58% people are in favor that traits included in the PA form are insufficient. Only 23% think that traits included in the PA form are sufficient in evaluating employees performance. 19% people have no opinion about the statement.

14. Feedback system is practiced in our organisation after completion of given task.
NO OPINION RESPONDENTS 12 44 15 23 6 PERCENTAGE 12 44 15 23 6

1 2 3 4 5

Strongly Agree Agree Neutral Disagree Strongly Disagree

44

23 12 15 6

Strongly Agree

Agree

No opinion

Disagree

Strongly Disagree

INTERPRETATION: 12% people strongly agree that they get feedback after completion of given task. 44% people agree that they get feedback but not always. 23% people disagree with the statement but sometime they get the feedback. 6% people strongly disagree with the statement i.e. they never get the feedback for their job. 15% people have no opinion about the statement

15. Career growth plan is a part of the performance appraisal system.

NO

OPINION

1 2 3 4 5

Strongly Agree Agree Neutral Disagree Strongly disagree

RESPONDENTS 27 48 9 10 6

PERCENTAGE 27 48 9 10 6

Strongly Agree 6% 10% 9% 27% Agree No opinion Disagree 48% Strongly Disagree

INFERENCE: 75% people think that career growth plan is the part of the PA system. 16% people dont agree that career growth plan is a part of the PA system. 9% people have no opinion about the statement.

16. The company should include common training program in the performance appraisal form.

NO

OPINION

1 2 3 4 5

Strongly Agree Agree Neutral Disagree Strongly Disagree

RESPONDENTS 36 43 10 9 2

PERCENTAGE 36 43 10 9 2

2% 9% 10% 36%

Strongly Agree Agree No opinion Disagree

43%

Strongly Disagree

INFERENCE: 79% people think that training programs included in the PA form are insufficient. 11% people think that training programs in PA form are sufficient. 10% people have no opinion about the statement.

17. Performance appraisal evaluates employees purely on the basis of job performance.
NO OPINION RESPONDENTS 16 34 25 17 8 PERCENTAGE 16 34 25 17 8

1 2 3 4 5

Strongly Agree Agree Neutral Disagree Cant Say

34 25 16 17 8

Strongly Agree

Agree

No opinion

Disagree

Strongly Disagree

INFERENCE:
50% people are agreeing that PA evaluates employees purely on their job performance. 25% people disagree with the statement. 25% people have no opinion about the statement.

18. Performance appraisal is a true reflection of an employees efficiency, performance and Effectiveness.
NO OPINION

1 2 3 4 5

Strongly Agree Agree Neutral Disagree Cant Say

RESPONDENTS 14 40 22 15 9

PERCENTAGE 14 40 22 15 9

INFERENCE: 54% people think that by PA we get true picture of employees efficiency, performance and effectiveness. 24% people do not agree with the statement. 22% people have no opinion about the statement.

EMPLOYEE VIEWS
50% people attended the 2-3 training programs. 60% people rated with the overall performance in last one year. 50% people want to get motivated in outstanding work. 60% people are not satisfied with the current appraisal system. 55% people want changes in appraisal system that they want face to face discussion with Initiating Authority and Reviewing Authority. Proper work should be provided to workmen to utilize their own skill. 65% people want to share their job experience after their retirement . 65% people want that to implement MBO method in HAL. Suggestions from the employees they said most of them want to be motivated from the side of company.

FIFTH GENERATION FIGHTER AIRCRAFT (FGFA)

CHAPTER 6 FINDINGS & CONCLUSIONS

1. From the100 employees surveyed, most of them (approximately 91%) are aware about the Performance Appraisal System followed in the company and an equal percentage of them aware about their job responsibilities.

2. 76% people think PA motivates employees for doing the job better and 65% people think through PA, Company can identify training needs.

3. A large majority (76%) feel that performance appraisal is an important motivational tool.

4. 53% people think that PA is effective in improving Superior- subordinate relationship.

5. Three-fourths of the respondents had responded that career-growth plan is part of the performance appraisal system.

6. More than one third of the respondents (41%) opine that appropriate training is not given after performance appraisal..

7. More than one-third (38%) have replied that performance appraisal is a lengthy and timeconsuming process.

MULTI-ROLE TRANSPORT AIRCRAFT (MTA)

SUGGESTIONS & RECOMMENDATION

1. The very concept of Performance Appraisal should be marketed throughout the organization; unless this is done, people would not accept it, however important it may be to the organization. 2. HR department can organize a workshop on Performance Appraisal System for all the employees to educate people about the system followed in the company. 3. The content of Appraisal form and marking scheme should be explained in detail to all the employees in order to ensure that performance appraisal is conducted in its true spirit. 4. 360o & MBO Appraisal system should be introduced for all Officers in the company so that performance appraisal reflects a fair picture. 5. Training is an important tool to develop employees. Training has to be imparted to equip employees with the required skills to ensure job performance. Appropriate training schedule has to be prepared and the same is to be conveyed to the employee. The Training Department has to ensure that the training programme mentioned in Performance Appraisal report is provided without fail. 6. The other criticism that the PA system is lengthy and time consuming can be overcome by implementing an online PA system. Only relevant fields have to be kept dynamic. Other permanent details of the employees like Date of Joining, Training undergone etc have to be stored in a database which will be reflected each time the PA form is filled without having to type the same details every time. 7. While rating the employees in PA there should be face to face discussion with Initiating Authority and Reviewing Authority.

LIGHT COMBAT HELICOPTER (LCH)

CONCLUSION

1. The performance appraisal system and the procedure followed at HAL have been well received by the employees. 2. The study reflects a fairly positive image of the PA system. Majority of the questions have received positive feedback from the majority of the respondents. 3. A majority of the respondents agree that career growth plan is a part of the PA system, which speaks well of the performance appraisal system being followed. 4. The system captures the training needs of individuals. 5. The respondents also opine that appropriate training is not provided after PA and that more training programs need to be added. 6. In a world of technology, it is imperative that the PA system should be set up online to eliminate unwarranted delays. It also improves employees efficiency. After surveying 100 employees, it can be concluded that PA is effective in motivating people in achieving the set targets and provides opportunity to improve oneself.

APPENDICES:
BIBLIOGRAPHY QUESTIONNAIRE GLOSSARY OF TERMS

BIBLIOGRAPHY
1. Human Resource Management by Ashwatthapa. 2. Circulars of HR department. 3. Web- sites: www.naukrihub.com www.ichr.com www.hal-india.com

GLOSSARY OF TERMS
1. Performance appraisal (PA): also known as employee appraisal, is a method by which the job performance of an employee is evaluated (generally in terms of quality, quantity, cost and time). Performance appraisal is a part of career development. 2. Paired Comparison Method: Ranking employees by making a chart of all possible pairs of the employees for each trait and indicating which is the better Employee of the pair. 3. Forced Distribution Method: Similar to grading on a curve; predetermined percentages of ratees are placed in various categories. 4. Graphic Rating Scale: A scale that lists a number of traits and a range of performance for each. The employee is then rated by identifying the score that best describes his or her performance for each trait. 5. Alternation Ranking Method: Ranking employees from best to worst on a particular trait. 6. Critical Incident Method: Keeping a record of uncommonly good or undesirable examples of an employees work-related behavior and reviewing it with the employee at predetermined times. 7. Behaviorally Anchored Rating Scale (BARS): An appraisal method that aims at combining the benefits of narrative and quantified ratings by anchoring a quantified scale with specific narrative examples of good and poor performance. 8. Management By Objectives (MBO): Involves setting specific measurable goals with each employee and then periodically reviewing the progress made.

9. Unclear Performance Standards: An appraisal scale that is too open to interpretation; instead, include descriptive phrases that define each trait and what is meant by standards like good or unsatisfactory. 10. Halo Effect: In performance appraisal, the problem that occurs when a supervisors rating of a subordinate on one trait biases the rating of that person on other traits. 11. Central Tendency: A tendency to rate all employees the same way, avoiding the high and the low ratings. 12. Strictness / Leniency: The problem that occurs when a supervisor has a tendency to rate all subordinates either high or low. 13. Appraisal Interviews: An interview in which the supervisor and subordinate review the appraisal and make plans to remedy deficiencies and reinforce strength.

QUESTIONNAIRE
HAL HR SURVEY QUESTIONNAIRE ON PERFORMANCE APPRAISAL FOR EMPLOYEES (Please be free to share your views. your answers are a valuable for us) Statements Please tick your response S.No Statements 1 2 3 4 5 The Performance Appraisal System followed in the 1. company is known to me 2. 3. 4. I am aware of the objectives of Performance Appraisal system practiced in the company. I am aware of what is expected out of my job. The performance appraisal systems help in improving employees efficiency. Performance appraisal is a motivational tool used by the organization. Training needs of employees are identified during performance appraisal. After performance appraisal, company provides necessary training. The Performance Appraisal improving relationship

5.

6.

7. 8.

between the Superior & Subordinate. 9. My immediate Superior conduct periodical performance appraisal. My superior gives me proper job related guidance from time to time. Performance appraisal is a lengthy and time consuming activity. HAL should implement computerized automated performance appraisal system. The traits included in the performance appraisal form are insufficient for evaluating employees performance. Feedback system is practiced in our organisation after completion of given task. Career growth plan is a part of the performance appraisal system. The company should include common training program in the performance appraisal form. Performance appraisal evaluates employees purely on the basis of job performance. Performance appraisal a true reflection of an employees efficiency, performance and effectiveness.

10.

11.

12.

13.

14.

15.

16.

17.

18.

Any suggestions is required to improve in feedback system?

Note: 1) Strongly Agree (2) Agree (3) Neutral

(4) Disagree (5)Strongly Disagree

ABBRIVATIONS: IA: Initiating Authority. RA: Reviewing Authority. PAR: Performance Appraisal Report. PRB: Performance Review Board.