A STUDY ON

PERFORMANCE

APPRISAL SYSTEM WITH

REFERENCE TO RINL, VSP
AT

VISHAKAPATNAM STEEL PLANT

(A report submitted to gayatri vidya parishad , ANDHRA UNIVERSITY.)

In Partial fulfillment for the award of

MASTER OF BUSINESS ADMINISTRATION

By
M.KRISHNAPREETHI
Under The Guidance Of
D. RADIKA
Senior Manager (Personnel H.R DEPT)
RINL, VISAKHAPATNAM STEEL PLANT

Faciliated by HRD deptt of RINL/VSP

Visakhapatnam
O.R.mohan rao
AGM(HRD) RINL/VSP

M.L.srinivasa varma
AM(HRD)RINL/VSP

CERTIFICATE

This is to certify that the project done by Ms.KRISHNA

PREETHI during the academic year 2011 - 2013, in
partial fulfillment for the award of Master of Business
Administration.

This project work is original and

exclusively done by her and has been never been a

basis for award/fulfillment of any degree or similar title
in this University or in any other University.

PLACE: VISAKHAPATNAM
DATE:

D. RADHIKA
Senior Manager (Personnel H.R DEPT)
RINL, VISAKHAPATNAM STEEL PLANT

CERTIFICATE OF PROJECT GUIDE IN VISHAKAPATNAM STEEL PLANT

This is to certify that the project report

entitled

case

study

on

Performance

Appraisal System with reference to RINL,

VSP is a bonfire work done and submitted in
partial fulfillment of the requirement for the
award of Master of Business Administration by
Ms.M.krishnapreethi

under

my

guidance

supervision.

PLACE: VISAKHAPATNAM
DATE:

D. RADHIKA
Senior Manager (Personnel H.R DEPT)
RINL, VISAKHAPATNAM STEEL PLANT

&

DECLARATION

I, M.krishna preethi, hereby declare that the project report entitled a

case study on Performance Appraisal System with reference to RINL,
VSP SUB. This project work is in partial fulfillment of the requirements for
the award of the Master of Business Administration, GAYATRI VIDYA
PARISHAD FOR PG COURSES, ANDHRA UNIVERSITY.

Place: VISAKHAPATNAM
Date:

M.KRISHNAPREETHI

ACKNOWLEDGEMENT

The Quest for Knowledge Never Ends, so continuing my journey of

Knowledge in Department of Business Administration, Manipur
Institute of Management Studies (MIMS), I have assigned to do my
Project title on A Case Study on Performance Appraisal System
with reference to RINL, VSP
This study is the result of the contribution,
guidance and co-operation received from collective at the Steel
Plant both explicitly and implicitly. No amount of words will be
adequate to acknowledge the help rendered by the individual that
assisted me in the preparation of this project report.
I would like to express deeply my sincere gratitude
and thanks to Madam D. Radhika, Senior Manager (Personnel
HR department) RINL, Visakhapatnam Steel Plant for her
outstanding co-operation.
I also want to extend my sincere gratitude to all the functional
members at RINL, Visakhapatnam Steel Plant, Visakhapatnam,
for their kind co-operation and helping me to do my project
successfully with them.
I would also like to express my true sincere gratitude to Dr. RAJINI
(DIRECTOR

OF

MANAGEMENT

STUDIES)

AND

SHAIK

SHEHZADI (FACULTY), for constant guidance, encouragement and

inspiration for this study.
I am also thankful to the faculty members and staff of gayatri vidya
parishad Management Studies for their valuable inputs, suggestion
guidance and encouragement to complete the project successfully.
Lastly I would like to thank my parents who have always been a
great source of support and encouragement. I would also like to
thank to all my friends for the needful assistance.

M. Krishnapreethi

INDEX

CHAPTER I

Introduction

CHAPTER II

Industry Profile

CHAPTER III

Company Profile

CHAPTER - IV

Performance Appraisal

CHAPTER V

Performance appraisal at
Visakhapatnam Steel Plant Ltd.,

CHAPTER VI

Analysis and Interpretation

Findings,
suggestions

conclusion

Questionnaire
Bibliography

and

CHAPTER I
INTRODUCTION

CHAPTER I
INTRODUCTION:
Appraisal of one individual by another individual is a continuous process
and it is Natural phenomenon in human beings. This is constantly done,
consciously and unconsciously in our day-to-day interaction, either in
family life or in a social setting or in an organization for that matter. While
the individual or a group uses appraisal in its own fashion depending upon
the need of the situation, in an organization it becomes necessary to
adopt a formal methodology of appraisal system because of the
requirement of measuring the performance for considering suitable
reward or punishment or for assessing the potential of a person to
increase his/her responsibilities. In short, there is a great requirement for
assessing the efficiency to gear up the productivity of the work-force.
OBJECTIVE
The following are the specific objective of the present study. To
study the performance appraisal system history and their activities in VSP.

To study and accesses the executive performance system and

effectiveness.

To measure the satisfaction level of the appraisal system of

VSP at present time.

To analyze the drive towards quality that is integrated into

executives performance appraisal.

To find the effectiveness of superior assessment of

performance

To

study,

identify

and

suggest

measures

to

improve

effectiveness specifically from quality perspective.

To find there is a cohesiveness attitude towards each other

employees

To find subordinates can give effective information for

evaluating the performance of the employees

To find there is a room for the internal customer in PAS and

can give valuable information for evaluating the performance
of the employee

To find 360 degree appraisal can improved the appraisal

system in VSP and can be implemented in RINL, VSP.

SCOPE OF RESEARCH
A sample of 50 respondents were selected at random from different
department Personnel Department, Vigilance Department, Marketing
Department, Finance Department, Mills-Works Department, Project
Departments and Training and Development Department, of employees
from the executives were sort for their opinions on the existing appraisal
system.
RESEARCH DESIGN
METHODOLOGY:
To get information about

Performance Appraisal System with

reference to RINL, VSP Simple Random Sampling survey was conducted.

For the present study of the data has collected by ways from the following
ways.
Questionnaire:
The questionnaire was personally administrated with respondent in
VSP it took nearly 30 minutes for each respondent to fill the questionnaire.
The responses was given by the respondents were tabulated and a score
sheet is prepared.
Organization Profile:
The general information regards organization has been collected
from files, forms, policy statements, Organization design and steel
industries in India. Performance appraisal in VSP has been also been
collected from all these records.

Author Books:
The information relating to the performance appraisal system has
been collected through a study of books. Human resource and personnel
management by C.B Gupta and Khankha, added to this source of
information relating to the system.
LIMITATIONS:
The study is how ever subjected to certain limitation.

The time is a major limitation. The whole study was conducted

within a period of 2 months.

The study does not cover the entire executive fraternity and the
officials at the rank of Directors and Chairman Cum Managing
Director. The study confers itself only to executives ranking from
Assistant Managers to General Managers.

Study is quality perspective has only been qualitative the

information gathered in this regard is mostly through information
discussion.

Only the existing system has been studied and no attempt has
been

made

to

identify

and

complete

new

and

dynamic

performance system due to this constraints.

BRIEF DESCRIPTION

Performance

appraisal

is

the

systematic

description

of

an

employees job-relevant strengths and weaknesses.

The basic purpose is to find out how well the employee is

performing the job and establish a plan of improvement.

Appraisals are arranged periodically according to a definite plan.

Performance appraisal is not job evaluation. Performance appraisal

refers to how well someone is doing the assigned job. Job evaluation
determines how much a job is worth to the organization and,
therefore, what range of pay should be assigned to the job.

Performance appraisal is a continuous process in every large scale

organization.

PURPOSE:
Performance appraisal aims at attaining the different purposes. They are:

To create and maintain a satisfactory level of performance.

To contribute to the employee growth and development through

training, self and management development programs.

To help the superiors to have a proper understanding about their

subordinates.

To guide the job changes with the help to continuous ranking.

To

facilitate

fair

and

equitable

compensation

based

on

performance.

To facilitate for testing and validating selection tests, interview

techniques through comparing their scores with performance
appraisal ranks.

To provide information for making decisions regarding lay off,

retrenchment etc.

To

ensure

employee

organizational
for

standard

effectiveness,
and

improved

through

correcting

performance,

and

suggesting the change in employee behavior.

CONTENT OF PERFORMANCE APPRISAL:
Every organization has to decide upon the content to be appraised
before the programme is approved. Generally content to be apprised may
be in the form of contribution to organizational objectives (measures) like
production, cost savings, return on capital, etc. other measures are based
on:

Behavior which measure observable physical actions, moments,

Objectives which measure job related results like amount of

deposits mobilized,

Traits which are measured in terms of personal characteristics

observable in appraisal and type and level of employees.

Contents to be apprised for an officers job:

Regularity of attendance

Self-expression: Written and Oral

Ability to work with others

Leadership styles and abilities

Initiative

Technical skill

Technical ability / knowledge

Ability to Grasp new things

Ability to Reason

Originality and resourcefulness

Creative Skills

Area of Interests

Area of Suitability

Judgment Skills

Integrity

Capability for Assuming Responsibility

Level of Acceptance by Subordinates

Fig: Key Elements of Performance Appraisal

Systems

Human
Performanc
e

Performanc
e Appraisal

Executive
Feedback

Performanc
e Measures

Performance
Related
Standards

Human
Resource
Decisions

Executive
Records

Fig: An Assessment Centre Model

Establish Goals
For Programme

Obtain Top
Management
Commitment

Do Detailed
Job Analysis

Define
Dimensions
to be
assessed

Develop
Policies for
Feeding Back
Data
Design
physical
Facilities

Conduct
Programm
e

Select
Exercises and
Participants
Design
Assessor
Trainings
Programme

Provide Feed
Back

Train
Assessors

Evaluate
Participants and
Centre Against Job
Success Criteria

HUMAN RESOURCES DEVELOPMENT:

It

is

well

recognized

everywhere

that

human

competency

development is essential prerequisite for any growth or development of

the organization. Human resource development is a newly emerging field
of study. Although development of human beings has been in existence in
some from or the other since the beginning of civilization, a planned and
systematic approach to HRD in the corporate sector emerged in the latter
half of the 20th century. Many organizations have set up HRD
Departments which

symbolized

the recognition

of

importance of

employees competency development.

CONCEPT OF HRD:
HRD is the process of helping people to acquire competencies. It is
an organized learning experience aimed at matching the organization
need for human resource with the individual need for career growth and
development. In an organizational context HRD is a process by which the
employees of an organization are helped in a continuous and planned way
to:

Acquire or sharpen capabilities require to perform various functions

associated with their present or expected future roles.

Develop their general capabilities so that may be able to discover

their own inner potentialities and exploit them to full for their own
and organizational development.

To develop and organizational culture where superior-subordinate

relationship, team work and collaboration among different submits
are strong and contribute organizational wealth and; motivation and
pride of the employees.

FEATURES OF HRD:

Human resources Development is planned any systematic

approach to the development of the people.

Human Resource Development is a continuous process of

developing the competencies, motivation, dynamism and
effectiveness of employees.

Human Resources

Development

is

an

inter

disciplinary

concept.

Human Resources Development has both micro and macro

aspects.

Human Resource Development is a process not merely a set

of mechanisms.

OBJECTIVES OF HRD:

To provide a comprehensive frame work and method for the

development of human resource in an organization.

To generate systematic information about human resource for

purpose of man power planning, placement, succession
planning and the like.

To increase the capabilities of an organization to recruit, retain

and motivate talented employees.

To create a climate that enables every employee to discover,

develop and use his / her capabilities to a fuller extent, in
order to further both individual and organizational goals.

NEED FOR HRD:

Competent

and

motivated

employees

are

essential

for

organizational survival growth and excellence. Over a period of time, an

organization may achieve a saturation point in terms of its growth. Even
to maintain such a saturation level of growth employee competencies
need to be sharpened or developed. Thus, HRD is need by every
organization that is interested in the following activities.

itself

Growing

Diversifying

Renewing itself to become more effective

Improving its systems and services

Change and becoming more dynamic

Playing leadership roles

FUNCTIONS OF HRD DEPARTMENT:

Develop a HR philosophy for the entire organization

Keep inspiring the line managers to have a consistent desire

to learn and develop.

Constantly plan and design new method and systems of

developing and strengthening the HRD climate.

Be aware of the business/other goals of the organization and

direct all their HRD efforts to achieve these goals.

Monitor

effectively

the

implementation

of

various

HRD

subsystem / mechanisms.

Work with unions and associations and inspire them.

Conduct

human

process

research,

surveys and renewal exercises regularly.

organizational

health

Influence personnel policies by providing necessary inputs to

the personnel department / top management.

HRD MECHANISMS
The following are the mechanisms of HRD

Performance appraisal

Potential appraisal and development

Feedback and performance counseling

Career planning

Training

Organizational development

Rewards

Employee welfare and quality of work like

Human resources information system

PERFORMANCE APPRISAL
Performance

appraisal

of

some

type

is

practiced

on

most

organizational all over the world:

A HRD oriented performance appraisal is used as a mechanism by
supervisions to

Understand the difficulties of their subordinates and try to

remove their difficulties.

Understand the strengths and weakness of their sub-ordinates

and help of subordinates to realize these.

Help the sub-ordinates to become aware of their position

contribution.

Encourage sub-ordinates to accept more responsibilities and

challenges.

Help sub-ordinates to acquire new capabilities.

Plan for effective utilization of talents of sub-ordinates.

FEEDBACK AND PERFORMANCE COUNSELING

Knowledge of ones strengths helps one to become more effective, to
choose situations in which ones strengths are required and to avoid
situations in which ones weaknesses could create problems. These also
increase the satisfactions of individuals often, people do not recognize
their strengths. Supervisions in and HRD system have the responsibility
for ongoing observation and feedback to subordinates about their
strengths and their weaknesses, as well as for guidance in improving
performance capabilities.
CAREER PLANNING:
The HRD philosophy is that people perform better when they feel
and see meaning in what they are doing. In the HRD system, corporate
growth plans are not kept secret dong-range plans for the organizations
are made known to the employees. Employees are helped to prepare for
change whenever such change is planned, in fact the employees help to
facilitate the change.
TRAINING:
Training

is

linked

with

performance

appraisal

and

career

development. Employees generally are trained on the job or through

special in house training programs. For some employees (including
executive) outside training may be utilized to enhance, update to develop
specific skills. This is especially valuable if the external training can
provide expertise, equipments, or sharing of experience that is not
available within the organization.
In-house training programs are developed by in-house trainers or
consultants hired for the task and periodic assessments are made of the
training needs within needs, manager, and employees who attend inhouse or outside training events are also expected to submit proposal

concerning any changes they would like to suggest on the basis of their
new knowledge. The training received by employees is thus utilized by the
organization.

ORGANIZATION DEVELOPMENT:
The function includes research to ascertain the psychological health
of the organization. This is generally accomplished by means of periodic
employee surveys. Efforts are made to improve organizational health
through various means in order to maintain a psychological climate that is
conductive to productivity. The organizational development or systems
experts also help any department or unit in the company that has
problems such as absenteeism, low resistance to change.

REWARDS:
Rewarding employees performance and behavior is important part
of HRD, Appropriate rewards no only recognize and motivate employees,
but also communicate the organization value to the employees. In HRD
systems, innovations and use of capabilities are rewarded in order to
encourage the acquisition and application, newsletter announcements,
increase in salary bonuses, special privileges and desired training reward
may be given to individuals as well as to teams, department, main and
other units within the organization.
EMPLOYEE WELFARE AND QUALITY OF WORK LIFE:
Employees at lower in the organization usually performance
relatively monotonous tasks and have fewer opportunities for promotion
or change. This is particularly true in developing countries. In order to
maintain their work commitment and motivation, the organization must
provide some welfare benefits such as medical insurance, disability
insurance, holidays and vacation.

Quality of work life programs generally focus on the environment

with the organization includes basic physical amenities such as food and
beverage facilities. Recreation and aesthetic and psychological and
motivational factors such as flexible work hours, freedom to suggest
change or improvements, challenging work and varying degree of
autonomy.
HRD IN VISAKHAPATANM STEEL PLANT (VSP)
The VSP has a nice HRD department with talented and experienced
staff. It is following more or less all the abo
ve mentioned HRD mechanisms. The HRD staff is very friendly and cooperative.
PHILOSOPHY OF HRD:
Employees of the company are its greatest and most valuable
resources.
While on the hand HRD should appropriately harness employees
potential for the attainment of company objectives on the other, the
company as its corporate responsibility should create an enabling the
best opportunity for self-expression all-round development and
fulfillment.
People are more than mere resource and therefore it will be a person
with all the respect and sensitivity that are all the respect and
sensitivity that is warranted when employees are seen as more than
more instrumentality.
HRD as a management function will be given a place of strategic
priority along with function like production, maintenance, materials or
finance in the overall scheme of management action in the company.

 HRD does not refer to training alone or it is just a new name for
training. In RINL/VSP, HRD several management functions, for the
development and growth of employees.
HRD should eventually be a core philosophy of all management action
and should not remain merely a report mental / sectional activity.
All functional and divisional heads responsible for various activities of
the company will the HRD spirit and suitably integrate HRD into their
plans, decision and actions.
HRD OBJECTIVES:

To

provide

initially

suitable

match

between

employee

competence levels and companys work requirements.

To foster an appropriate climate and culture which nature.

Employee competence and crease adequate motivational levels
for the application of their abilities to assigned job / roles with
required commitment.

To enable employees seek great identification with the company

by infusing most management decisions and actions with the
requisite care, concern and development approach.

To work towards enabling the employees and other stakeholders

ask self fulfillment even work for the growth and property of the
company.

To utilization enable to employees and the organization to

achieve its mission and objective and business goals through
HRD.

HRD GROUP-KEY ACTIVITY:

TQM and in-house programs

Nomination to external programs

Organization research and organization development

Membership with professional bodies

Performance appraisal for executives

Human resource information

In plant training for management studies.

Lectures by eminent personalities.

Corporate presentation

Interactions with professional academicians and consultants.

CHAPTER II
INTRODUCTION TO STEEL INDUSTRY IN INDIA

CHAPTER II
INTRODUCTION TO STEEL INDUSTRY IN INDIA
STEEL INDUSTRY:
Steel industry is the back bone of all industrial commercial activities.
Realizing these countries planners have been formulating and updating
annual plants for production of iron and steel. In this context a number of
steel plants were setup. The steel industry plays a vital role in the growth
of nations economy.
Steel is such a versatile commodity that every object we see in our
day to day life has used steel either directly or indirectly in its product. To
mention a few it is used for such small items as nails, needles etc.
agriculture

implements

boilers,

ship

fabrication,

railway

materials,

automobile parts, etc. to have machine structure.

The great investment that has gone into the fundamental research
in iron and steel technology has helped both directly and indirectly in
many modern fields of todays science and technology. It would have been
very painful to imagine the fate of todays civilization if steel has not been
there. Steel is versatile and indispensable item. The versatility steel has
not been there. Steel is versatile and indispensable item. The versatility
steel can be traced mainly of three reasons.

It is only metallic item, which can be continently and economically

produced, in large quantities.

It has got very good strength coupled with density and malleability.

It properties can be changed over a wide range. It alloys easily with

many of the common element.

INDIAS STEEL SCENARIO:

Indian steel industry has always remained isolated and protected by
government, where the steel industry was never expected to generate
profit from business, but was expected to provide employment to the
unemployed. Presently Indian is operating with open-hearth furnaces. The
existing equipment, energy and labour in Indian Steel industry are much
low than developed countries.
Indian steel industry generates a significant amount of waste
materials, which can cause environmental problems. The four aspects of
Waste Management namely-residue reprocess, recycle and recovery do
not hold much ground in the Indian steel industry. The Indian companies
cannot spend more for pollution control. The energy consumption per ton
is 50-10% higher than that of the international norms.
The Indian Steel industries have developed a bit in the recent years.
The production is growing on properly. Many techniques are being
implemented in the steel industries. The countrys aim is to sell quality
steel. The government is also helping the steel industries in this basis. The
apparent consumption of steel is shown below.
The development of steel industry in India should be viewed in
conjunction with the type and system of government that had been
resulting the country. The production of steel in significant quality started

after 1990. The growth of steel industry can be conveniently started by

dividing the period into pre and post independent era. In the period of pre
independence steel production was 1.5 million tons per year, which was
raised to 9.0 million tons of target by the seventies. This is the present of
the bold steps taken by the government to develop this sector.

WORLDS DEMAND FOR STEEL :

The total demand for steel in world is expected to grow at an annual
rate of 1.7% between 1935 and 2000 A.D. as per the study concerned by
China economists. According to their estimation total demand in advanced
industrial countries on a whole is expected to grow at 0.6% annual rate
following a 2.2% rate between 1974 to 1984. Steel demand is less
developed countries on a whole is expected to grow at a 5.5% annual rate
up to 2000 following a 3.1 annual growth rate between 184-1994. within
the controlling plant economy the Eastern Europe erstwhile USSR region
may have 0.3% annual steel demand growth. Steel demand in China,
North Korea region would grow at 4.0 annual rates up to the end of this
century at a 7.5% per annual growth during 1974-1980.

HIGHLIGHTS OF PRESENT STEEL SECONARIO:

The world steel shows a low growth demand.

There is a threat to steel industry from competitive products like

plastics, aluminum etc.

Developed countries slowly reduced the production of steel.

Developing countries like China are planning to produce steel as

much large quantity then of present output of 80 Mt. per annum.

Indian consciously and strategically decides to invest into steel

production.

Preference is given to superior quality products and high value item

production.

Customer oriented approach in view of product oriented approach

Emergence of new technology like scraps preheating

GROWTH OF STEEL INDUSTRY

The growth in a chronological order is depicted below:
S.No.

Year

Growth

1830

Osier Marshall Heathler constructed the first

manufacturing plant at port-motor in Madras
presidency.

1874

James Erskin founded the Bengal frame works

1899

Jamshediji TATA imitated the scheme for an

integrated steel plant.

1906

Formation of TISCO.

1911

TISCO Started production

1918

TISCO was founded

1940

Formation of Mysore iron and steel initiated at

Bhadravathi in Karnataka

1981-1956

First five-years plan- The Hindustan Steel

Limited (HSL) was born in the year 1954 with
decision of setting up three plants each with 1
million tones in got steel per year at Roiurkela,
Bhilai, Durgapur. TISCo started its expansion
program.

1956-1961

Second five years plan A bold decision was

taken up to increase the ingot steel output in
India to 6 million tones per year and its
production at Rourkela, Bhilai and Durgapur
Steel plant started.

10

1961-1966

Third five year plan during the plan the three

steel plants under HSL, TISCO & TISCO were
expanded*

11

1964

Bokaro Steel plant came into existence

12

1966-1969

Recession
period

till
the
expansion
programmes were actively existed during this
period.

13

1969-1974

Fourth five-years plan - Salem steel plant

started. Licenses were given for setting up of
many mini steel plants and re-rolling mills
government of India. Plants in south are each in
Visakhapatnam and Karnakata. SAIL was formed
during this period on 24th January 1973 definite
shape. At the end of the fifth five year plans the
totaled installed capacity fro six integrated
plants was up to 10.6 million tons

14

1979-1980

Annual plan. The Erstwhile soviet union agreed

to help in setting up the Visakhapatnam steel
plant

15

1980-1985

Sixth five-year plan work on Visakhapatnam

steel plant stared with a big bang and top
priority was accorded to start the plant.
Schemes for modernization of Bhilai Steel Plant,
Rourkela steel plant, Durgapur steel plant and
TISCO were imitated. Capacity at the end of
sixth five-year plan from six integrated plants
stood 11.50 million tones.

16

1985-1991

Seventh five-year plan expansion works at

Bhilai and Bokaro steel plant completed.
Prograess of Visakhapatnam steel plant picked
up and the nationalized concept has been
introduced to commission the plant with 30 MT
liquid steel capacities by 1990.

17

1992-1997

Eight five-year plan- The Visakhapatnam steel

plant was commissioned in 1992. The cost of
plant has become around 8755 crores.
Visakhapatnam
steel
plant
started
the
production and modernization of other steel
plants is also duly engaged.

18

1997-2002

Ninth
five-year
planRestructuring
of
Visakhapatnam steel plant and other public
sector undertakings.

STEEL PLANTS WITH FOREIGN COLLOBORATIONS

Sl.
No.
1
2
3
4

Sl.N

Plant

Collaboration Capacity of
Finished Steel Products
West Germany
Erstwhile USSR
Britain
Erstwhile USSR

Rourkela Steel Plant

Bhilai Steel Plant
Durgapur Steel Plant
Bokaro Steel Plant

Plant

Collaboration Capacity

Annual

o.

of Finished Steel

Production

1
2
3

Productions
West Germany
Erstwhile USSR
Britain

7,20,000 Tones
7,70,000 Tones
8,00,000 Tones

Rourkela Steel Plant

Bhilai Steel Plant
Durgapur Steel Plant

PROBLEMS OF STEEL PLANT INDUSTRY

LACK OF RAW MATERIALS:
Non-availability of good quality raw material is another faced by iron
and steel industry. The modern gain blast furnace needs high-grade iron
ore and good metallurgical coal.
Further the industry is unable to get good quality and manganese is
which the principle, raw materials next to iron ore are unfortunately most
of our resources of manganese ore are of poor quality besides the non
availability of good quality raw material, regular supplies of raw materials
are very much handicapped due to the absence of good transport

facilities. Another problem faced by the steel industry related to the

difficulty in getting zinc supplies for the continuous galvanizing line.

LACK OF TECHNICAL PROBLEMS

Bhilai had to execute orders for shipment of rails to Iran, South
Korea and Malaysia.
Because of technical limitations, Rourkela plant is unable to
substitute aluminum of zinc for the production of galvanized sheet apart
from source internal problems; our technology in the field of steel
production is not a developed one when compared to other advanced
countries.

GOVERNMENT CONTROL AND PRICING POLICY

Since 1941, India steel and iron industry was almost completely
state regulated. Both prices and distribution of steel were under control of
government. The Govt. decided to remove statutory control over the price
and distribution of all, but a few categories with effect from 1 st March 26,
1964 the Govt. supervise the steel and iron inducted according to the
recommendation of Raja Committee. But Raj committee in fixing the steel
price didnt regulate the price of raw materials.

CHAPTER III
COMPANY PROFILE

CHAPTER III

COMPANY PROFILE
Introduction
Visakhapatnam Steel Plant (VSP), the first coast based Steel Plant of India
is located, 16 KM South West of city of Destiny i.e. Visakhapatnam.
Bestowed with modern technologies, VSP has an installed capacity of 3
million Tons per annum of Liquid Steel and 2.656 million Tons of saleable
steel. At VSP there is emphasis on total automation, seamless integration
and efficient up- gradations, which result in wide range of long and
structural products to meet stringent demands of discerning customers
within India and abroad. VSP products meet exacting International Quality
Standards such as JIS, DIN, and BIS, BS etc.
VSP has become the first integrated Steel Plant in the country to be
certified to all the three international standards for quality (ISO-9001), for
Environment Management (ISO-14001) & for Occupational Health & Safety
(OHSAS-18001). The certificate covers quality systems of all Operational,
Maintenance and Service units besides Purchase systems, Training and

Marketing functions spreading over 4 Regional Marketing Offices, 24

branch offices and stock yards located all over the country.

VSP by successfully installing & operating efficiently Rs. 460 crores worth
of Pollution Control and Environment Control Equipments and converting
the barren landscape by planting more than 3 million plants has made the
Steel Plant, Steel Township and surrounding areas into a heaven of lush
greenery. This has made Steel Township a greener, cleaner and cooler
place, which can boast of 3 to 4 C lesser temperature even in the peak
summer compared to Visakhapatnam City.
VSP exports Quality Pig Iron & Steel products' to Sri Lanka, Myanmar,
Nepal, Middle East, USA, China and South East Asia. RINL-VSP was
awarded

"Star

Trading

House"

status

during

1997-2000.

Having

established a dependable export market, VSP plans to make a continuous

presence in the export market.
Having a total manpower of about 17,600 VSP has envisaged a labor
productivity of 265 Tones per man-year of Liquid Steel.

Background & Corporate Plan of VSP

Background
With a view to give impetus to Industrial growth and to meet the
aspirations of the people from Andhra Pradesh, Government of India
decided

to

establish

Integrated

Steel

Plant

in

Public

Sector

at

Visakhapatnam (AP). The announcement to this effect was made in the

Parliament on 17 April' 1970 by the then Prime Minister of India late Smt.
Indira Gandhi.

A site was selected near Balacheruvu creak near

Visakhapatnam city by a Committee set up for the purpose, keeping in

view the topographical features, greater availability of land and proximity
to a future port. Smt. Gandhi laid the foundation stone for the plant on
20.01.1971.
Seeds were thus sown for the construction of a modern & sophisticated
Steel Plant having annual capacity of 3.4 Million Tons of hot metal.

An agreement was signed between Governments of India and the

erstwhile USSR on June 12th, 1979 for setting up of an Integrated Steel
Plant to produce structural & long products on the basis of detailed Project
report prepared by M/s M.N. Dastur & Company.
A Comprehensive revised DPR jointly prepared by Soviets & M/s Dastur &
Company was submitted in Nov' 1980 to Govt. of India. The construction
of the Plant started on 1st February 1982. Government of India on 18th
Feb'82 formed a new Company called Rashtriya Ispat Nigam Ltd. (RINL)
and transferred the responsibility of constructing, commissioning &
operating the Plant at Visakhapatnam from Steel Authority of India Ltd. to
RINL.
Due to poor resource availability, the construction could not keep pace
with the plans, which led to appreciable revision of the plant cost. In view
of the critical fund situation and need to check further increase in the
plant costs, a rationalized concept was approved which was to cost Rs.
6849 crores based on 4th Quarter of 1988. The rationalized concept was
based on obtaining the maximum output from the equipment already
installed, planned / ordered for procurement and achieving higher levels of
operational efficiency and labor productivity. Thus, the plant capacity was
limited to 3.0 Million Tons of Liquid Steel per annum. In the process, one of
the Steel Melt Shops and one of the mills were curtailed. The availability of
resources were continued to be lower than what was planned and this
further delayed the completion of the construction of the plant. Finally all

the units were constructed and commissioned by July' 92 at a cost of

Rs.8529 Crores. The then prime Minister of India Late Sri P. V. Narasimha
Rao dedicated the plant to nation on 1st August 1992.
Since Commissioning VSP has already crossed many milestones in the
fields of production, productivity & exports. Coke rate of the order of 509
Kg/Ton of Hot metal, average converter life of 3126 heats an average of
23.6 heats per sequence in continuous Bloom Caster. Specific energy
consumption of

6.07 G Kal / ton of liquid steel, a specific refractory

consumption of 8.94 kg and a labor productivity of 414 Ton / man-year are

some of the peaks achieved in pursuit of excellence.
Corporate Plan :
Vision, Mission ,Objectives(VMO) and core values
MISSION
To attain 16 million ton liquid steel capacity through technological upgradation, operational efficiency and expansion: augmentation of assured
supply of raw materials; to produce steel at international standards of cost
and quality: and to meet the aspirations of the stakeholders.
VISION
To be a continuously growing world-class company, we shall

Harness the growth potential and sustain profitable growth.

Deliver high quality and cost competitive products and be the

first choice of customers.

Create an inspiring work environment to unleash the creative

energy of people.

Achieve excellence in enterprise management.

Be a respected corporate citizen, ensure clean and green

environment and develop vibrant communities around us.

OBJECTIVES

Expand plant capacity to 6.3 Mt by 2011-12 with the mission to

expand further in subsequent phases as per Corporate Plan.

Revamp existing Blast furnaces to make them energy efficient to

contemporary levels and in the process increase their capacity by 1
Mt; thus total hot metal capacity to 7.5 Mt.

Be amongst top five lowest cost liquid steel producers in the world.

Achieve higher levels of customer satisfaction.

Vibrant work culture in the organization.

Be proactive in conserving environment, maintaining high levels of

safety and 0addressing social concerns.

CORE VALUES

Commitment

Customer Satisfaction

Continuous Improvement

Concern for Environment

Creativity & Innovation

MANPOWER OF RINL, VSP (as on 1.07.2011)

EXECUTIVES
WORKS

PROJECTS
MINES
OTHERS
NON
EXECUTIVES

As on
As on
31.03.200 31.03.200
7
8
3532
4201
2145
2584
225
280
54
64
1108
1273
11937
11544

As on
31.03.200
9
5218
3249
329
93
1547
12007

As on
31.03.201
0
5263
3153
327
104
2110
12567

As on
01.07.201
1
5258
3231
340
94
1593
12500

WORKS
PROJECTS
MINES
OTHERS
TOTAL
WORKS
PROJECTS
MINES
OTHERS

10687
68
281
901
16574
13608
320
357
2289

10387
64
265
828
16433
13463
353
350
2267

10476
63
267
1201
17225
13725
392
360
2748

11163
58
262
1404
17830
14316
385
366
3514

11256
50
247
947
17758
14487
390
360
2521

Key performance indicators

Production Performance:
Commercial Performance
Year
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011

Sales Turnover Domestic Sales

9151
8726
10433
9878
10458
10379
10634
10283
11517
11095

Exports
424
555
79
351
422

Table 3.6.a commercial performance(rupees in crores)

Fig. 3.6.b. Commercial Performance since 2006-07

CHAPTER IV
PERFORAMNCE APPRAISAL

CHAPTER IV
PERFORAMNCE APPRAISAL
INTRODUCTION
Appraisal of performance is wide used in the society. Parents their
children, teacher evaluate their student and employers evaluate their
employee. However, formal evaluation of employees is believed to have
been adopted for the first time during First World Ward. At the inlands of
Walter Dill Scott the US army man to man rating system for evaluating
military personal. Once the employees has been selected, trained the
motivated, he is then apprised for his performance. Performance appraisal
is the step where the management finds out how effective it has been at
hiring and placing employees if any problems are identified, steps are
taken to communicated to employee and to remedy them. A performance
appraisal is a process of evaluating the performance appraisal is a process
of evaluating the performance and qualification of employee according to
job and its requirement. It is also known as the process of estimating and
judging the value, excellence. Qualities of status of some object person or
things. Individually and collectively, it is the part of the other staffing
process, like recruitment, selection, placement, etc.
TRENDS IN PERFORMANCE APPRAISAL:
Item
Former Emphasis
Terminolog Merit-rating
y
Purpose

Determine

wage

Present Focus
Performance appraisal

increase,Development

of

the

promotion, transfer, lay off.

individual,

improved

Application Fort rank and file workers

performance
For
managerial

Factors

technical personnel
Performance
result

Personal traits

rated
Techniques Rating

scales

with

job
and
or

accomplishment
emphasis Mutual goal-setting.

upon
CONCEPT OF PERFORMANCE APPRAISAL:
Performance evaluation or performance appraisal is the process of
assessing performance and progress of employee or of a group of
employee on a given job and his potential for future development. In
concept of all formal procedure used working organization to evaluate
personality, contribution and potential of employees.
The main characteristic of performance appraisal is as follows:
Performance appraisal is the process consisting of series of steps.

It is the systematic examination of employee strengths and

weakness in terms of jobs.

Performance appraisal is the scientific or objective study. Formal

procedure is used in the study the same approach is adopted for all
jobs holders for that result is comparable.

It is an organizing or continuous process where in the valuation is

arranged periodically according to a definite plan.

Main process performance appraisal is to secure information

necessary for making objective and correct decision on employees

OBJECTIVES OF PERFORMANCE APPRAISAL:

The main purposes of performance appraisal are as follows:

To provide a valid data base for personnel decision concerning

placements, pay, promotion, transfer, punishment etc.

To diagnosis the strength and weakness of individuals so as to

identify further training needs.

To provide coaching, counseling, career planning and motivation to

subordinates.

To develop positive, superior-subordinate relations and thereby

reduce grievances.

To facilitate research in personnel management.

Definition:
Performance evaluation of performance appraisal is the process of
assessing the performance and progress of an employee or of a group of
employees on a given job and his potential for future development.
Formal Definition:
it is the systematic evaluation of the individual with respect to his /
her performance on the job and his / her potential for development.
According to Flippo
Performance Appraisal is the systematic, periodic and an impartial
rating of an employees excellence in matters pertaining to this present
job and his potential for a better job.
Characteristics:

It is process of consisting of series of steps

It is the systematic examination of an employees strengths and

weaknesses in terms of his job.

It is a scientific and objective study. Formal procedures are used

in this study.

It is an ongoing or continuous process there in the evaluations is

arranged periodically according to a definite plan.

The main purpose of performance appraisal is to secure

information necessary for making objective and correct decisions
on employees.

Objectives:

To provide feedback to employees so that they come to know

where they stand and can improve their job performance.

To provide a valid data base for personnel decision concerning

placements, pay promotions, transfers, punishments, etc.

To diagnose the strengths and weakness of individuals so as to

identify further training needs.

To provide coaching, counseling, career planning and motivation

to subordinates.

To develop positive superior subordinates relations and thereby

reduce grievances.

Thus, performance appraisal aims at both judgmental and

development efforts.

Uses:

It provides valuable information for personnel decisions such as

pay increase, promotion etc.

It helps to judge the effectiveness of recruitment, selection

placement and orientation system of the organization.

It is useful in analyzing and development needs.

It can be used to improve performance though appropriate

feedback, working and counseling to employees.

It facilitates Human Resource Planning, career planning and

succession planning.

A competitive spirit is created and employees are motivated to

improve their performance.
Process of Performance Appraisal:

Establishing performance standards the appraisal process

begins with the setting up of criteria to be used for appraising the
performance of employees. The criteria are specified with the
help of job analysis, which reveals the contents of job. This
criteria should be clear, objective and in wiring.

Communicating the standards the standards are conveyed to

the employees and the evaluators. A feedback regarding the
standards should be obtained from the evaluators and the
employees for revision or modification.

Measuring

performance

this

require

choosing

the

right

technique of measurement, identifying the internal and external

factors influencing performance and collecting information on
results achieved.

Comparing the actual with the standards actual performance is

compared with the predetermined performance standards. Such
comparison will reveal the deviation, which may be positive or
negative.

Discussing the appraisal The results of the appraisal are

communicated to an discussed with the employees. Along with
the deviations, the reason behind them are also analyzed and
discussed. Such discussion will enable the employee to know his
weaknesses and strengths.

Taking corrections through mutual discussions with employees,

the step required to improve performance are identified and
initiated. Training, coaching, counseling, etc., are examples of
corrective actions that help to improve performance.

METHODS OF PERFORMANCE APPRAISAL

Several methods and techniques are used for evaluating employee
performance. These may be classified into Traditional and modern
methods.
Traditional Methods:

Ranking Method: is technique, evaluator assigns relative ranks to

all employee performance. These may be classified into Traditional
and Modern methods.

Man-to-man compression methods: In this method, certain

factors are selected for the purpose of analysis and the rater for
each factor designs a scale. A scale of man is also created for each
selected for each factor. Then each man to be rated is compared
with the man in the scale, and certain scores are awarded to him. In
other words, a whole man is compared to a key man in respect of
one factor at a time. This method is used in job evaluation and is
known as the factor comparison method.

Paired comparison method This is a modified form of man to

main ranking. Herein, each employee is compared with all others in
pairs on at a time. The number of times an employee is judged
better than other determines his rank. Comparison is made on the
basis of overall performance.

Forced distribution method In these techniques the rater

appraises an employee according to a pre-determined distribution
scale. It is assumed that it is desirable to rate only two factors by
this method that is job performance and promo ability. For this
purpose a five poking performance scale is used without any

descriptive statement & employees are placed between two

extremes of good and bad performance.

Graphic rating scales methods It is a numerical scale indicating

different degrees of a particular train. The rater is given a printed
from for each employee to be rated. The form contains several
characteristics relating to the personality and performance of
employee. Intelligence, attitude, quality of world, leadership skills
judgment, etc. are some use characteristics.

This method is widely used as it is easy to understand. It allows a

statistical tabulation of scores and, a ready comparison of scores
among

the

employees

is

possible.

The

approach

is

multi-

dimensional as several significant dimensions of the job can be

considered in evaluation.

Critical incident method In this method the superior keeps a

written record or critical (either good or bad) events and how
different employees behaved during such events. The rating of the
employee depends on the positive or the negative behaviors during
these events. These critical incidents are identified after though
study of the job and discussions with the staff. This method helps to
avoid vague impression and general remarks as the rating is based
on actual records of behavior.

Group appraisal method Under this method, a group of

evaluators assess employee. This group consists of the immediate
supervisors of the employee, other supervisors having close contact
with the employers work, head of the department and a personnel
expert. The group determines the standards of performance for the
job, measurers actual performance of an employee, analysis the
causes

of

poor

performance

improvements in future.

and

offers

suggestions

for

Grading method Under this method, the rater considers certain

factors, and marks them accordingly to a scale. The selected factor
may

be

analytical

ability,

co-operation,

dependability

self-

expression, job knowledge. They may be grades as A outstanding

B very good, C good/average, D fair, E poor. The actual
performance

of

an

employee

is

then compared

with

these

definitions and he is allotted the grade which best described his

performance.

Forced Choice Distribution method In this method, the rating

elements are several of pairs phrases of adjectives relating to job
proficiency or personal qualification. The rater is asked to indicate
which of the phrases is most and least descriptive of the employee.

Checklist method In this method, series of questions are

presented concerning and employees behavior. Here rater does not
evaluate employee performance; he supplies reports about it and
the personnel department does the final rating.

Free Essay Method In this method, the supervisor makes a free

form, open-ended appraisal of an employee in his own words and
puts down his impression about the employee. The description is
always as factual and concrete as possible.

Filed review method In this method, trainer employee from the

personnel department interviews line supervisors to evaluate
respective subordinates. The supervisor is required to give his
opinion about the progress of his subordinates and his plan of action
in cases requiring for consideration.

The tradition methods given above focus on the traits of an employee

than an his job performance, in the absence of predefined performance

criteria or standards, the personal bias or subjectively of the evaluator

affects the rating. This approach caused the following responses:

The very nature of the appraisal system led to criticism

Criticism exercised a negative impact on goal attainment

Criticism

increased

antagonism

and

defensiveness

among

employees resulting in inferior performance.

Managers generally are not qualified to assess personality traits.

Some

managers

discourage

good

performances

by

over

emphasizing shortcomings and almost neglecting good work.

In order to overcome these weaknesses some new techniques of
performance appraisal have been developed.

Modern Methods:

Assessments center method - An assessment center is a group

employee drawn from different work units. These employees work
together on assignments similar to the one they would be handlings
when promoted. The most important feature of the assessments
center is job-related simulations. Evaluators observe and rank the
performance of all participants. This group evaluates all employees
are

both

individually

and

collectively

by

using

simulations

techniques like role playing, business games and in-basket

exercises? Employees are evaluated on the basis of job related
characteristics considered important for job success. The evaluators
prepare a summary report and feedback is administered on a faceto-face basis to the employees who ask for it. An assessment center
generally measures interpersonal skills, communicating ability to
plan and organize, etc. Assessments centers are not only methods
of appraisal but help to determine training and development needs
of employees and provide data for human resources planning.

Human resource accounting method Human resource are a

valuable asset for any organization. This asset can be valued in

terms of money. When competent, and well-trained employees leave

and organization the human asset ids decreased and vice versa.
Under the this method performance is judged in terms of costs and
contributions of employees. Costs of human resources consists of
expenditure on human resources planning, recruitment, selection,
induction, training, compensation, etc. contribution of human
resources is the money value of labor productivity of value added by
human resources. Difference between cost and contribution will
reflect the performance of employees. This method is still in the
transitory stage and is, therefore, not popular at present.

Behavioral Anchored Rating Scales (BARS) -

This method

combines graphics rating with critical incidents method. BARS are

decryptions of various degrees of behavior relating to specific
performance dimensions.

Critical areas of job performance and the most effective behavior

for getting results are determined in advance. The rater records the
observable job behavior of an employee and compares these
observations with BARS. In this way an employees actual behavior
is judged against the desired behavior. This steps involved are:-

Identify critical incidents Persons with knowledge of the

identify job to be appraised describe specific examples of both
effective and ineffective job behaviors.

Select performance dimensions - The persons then cluster the

behavioral incidents into a smaller set (usually 5-10) of performance
dimensions.

Retranslate the incidents Another group of knowledgeable

persons assign each incident to the dimension that it best describes.
Incidents for which there is less than 75% agreement with the first
group are not retranslated.

Assign Scales to incidents -

The second group rates each

incident on a 7 or 9 point scale. Rating is done on the basis of how

well

the

behavior

described

in

the

incident

represents

the

performance on the appropriate dimensions. Means (average) and

standards deviations are then calculated for the scale values
assigned to each incident.

Develop final instrument A subset of the incidents that meet

both the retranslation and standard deviation criteria is used a
behavioral anchor for the final performance dimensions. A final
BARS instrument typically comprises a series of vertical scales that
are endorsed by the include incidents. Each incident is positioned on
the scaled according to its mean value.

360 degrees performance appraisal -

This is a new concept in

performance appraisal, where the feedback is collected form all

around the employee, the superiors, the subordinates, the peer
group, and the customers.

The evaluation is very comprehensive in terms of the employees

skills, Abilities, styles, and job-related competencies. This system
has the following advantages:

Higher validity and reliability of the evaluation

Self evaluation by the employees gets compared with the

perception of others.

Helps in maximizing employee potential in the face of

challenges.

ADVANTAGES:

Ratings are likely to be accurate because these are done by

experts.

The method is more reliable and valid as it is job specific and

identified observable and measurable behavior.

Ratings are likely to be more acceptable due to employee

participation

The use of critical incidents is useful in providing feedback to the

employee being rated.

Limitations:

It is very consuming and expensive to develop BARS for every

job.

Behaviors used are more activity oriented than results oriented

Appraisal by result or MBO (Management by Objectives) The

concept of management by objectives was developed by Peter Drucker in
1954. Since the MBO has become an effective and operational technique
of performance appraisal and a powerful philosophy of managing.

CHAPTER V
PERFORMANCE APPRAISAL AT VISAKHAPATNAM
STEEL PLANT LIMITED

CHAPTER V
PERFORMANCE APPRAISAL AT VISAKHAPATNAM
STEEL PLANT LIMITED
COMPONENTS
When to appraise:
Performance appraisal across all levels at Visakhapatnam steel plant
limited is conducted twice in a year. The Human resource department
sends the appraisal forms to the concerned departments after duly fitting
in the staff details.
Who Should Appraise:

The immediate superior of the employee not below the Assistant

Manager cadre shall be the Reporting Officer. In case the employee is
directly working under the supervision of any officer higher.
PROCEDURE:
The Human Resource department prepares appraisal forms for each
and every category of employee and at the start of the appraisal period; it
sends these forms to the concerned departments after filling in the
necessary details of the employee to be appraised which is called
background information.
The staff should have worked at least for a period of 6 months to be
appraised by an officer. In case the appraise reports to more than one
reporting officer in an appraisal year, on transfer, promotion etc.,. The
personnel department would forward the appraisal forms to Reporting
officers concerned for the period, the appraise reports to them.

The assessment an employee is primarily governed under a 2 tier

system that is assessment by the Reporting Officer as well as by the
Reviewing officer, where the assessment is subject to concurrence of the
Consenting Authority, which will be final.
The assessment done on the basis of certain attributes / factors
which help in defining the job requirements of a particulars job. Usually a
4- point scale or a 10 point scale for each factor is used for rating. Once
the reporting officer gives his rating and comments if any, the same shall
be put to the reviewing officer who after careful scrutiny of the appraisal
will pass his remarks.

After the reviewing officers comments are given and duly signed by
him. He can advise the reporting officer to discuss the appraisal with the
employee or, in certain cases, may decide to discuss the appraisal with
the employee himself but in the presence of the Reporting officer.
The reporting officer after rating the employee on various attributes
will give his remarks, which are communicated, to the reviewing officer.
Later these are discussed with the employee to know his reaction. After
the discussion with the employee, the reporting officers give his final
remarks

and

his

suggestions

for

improvement

of

the

employee

performance. The reviewing officer for further comments later scrutinizes

these.
The complete appraisal report is then sent back to the personnel
department in a confidential cover. The personnel department will then
check the appraisal report for irregularities and any adverse entries
against any of the employee made by the reporting officer will be
communicated to the employee in a covering letter asking him/her to
improve and a copy of the small will be placed in his / her personal life.

Objective of performance appraisal system:

To appraise the individuals performance on the work assigned to

him and qualities he is expected to show on the job in performing
his tasks as expected by the organization through his supervising
officers and to assess the potential for higher responsibilities.

The generate inputs for promotions, confirmations, placements,

training and personnel and developmental decisions in respect of
the individual so appraised.

To assess the professional, managerial, behavior and other training

and

development

needs

and

provide

information

to

the

personnel/HRD department for the development decisions.

Guide Lines for Appraisers:

The employee should be appraised for his present position.

Judgment should be based on the entire review period & not

on isolated incidents.

Snap judgments should be avoided.

Each

factor

under

considerations

should

be

appraised

independently without being influenced by other factors.

It is advisable that the individual being assessed should

compare with other of the same rank employed on more or
less similar type of work.

Over rating as well as under rating diminishes the value of

the assessment.

Reason for given rating of the attribute should be well

substantiated.

ABOUT THE FORMS

Content of the Form:

Background information

of the employee to be filled in by the

personnel department which contains

Name

Designation

Date of joining

Department

Employee number

Special assignment

Qualification

Commendation

Punishments and warnings awarded during the year (with

reasons)

Attributes For Performance / Potential Assessment

For Officers:

Professional knowledge and application

Capacity to achieve results

Dependability

Judgment and decision making

Communication skills (written or oral)

Leadership

Planning and organizing ability

Co-operation and team spirit

Adaptability

Personality

For Technical / Non-Technical Staff (common attributes):

Job knowledge : knowledge and understanding of job assigned

Quality of work: Thoroughness and accuracy of work done without

mistakes, neatness and present ability should be considered.

Quality of work: Amount of out vis--vis the time taken

Initiative : Self staring ability, resourcefulness and the ability to

inspire confidence should be considered.

Conduct: Ability to get on with other fellow employees.

Regularity: Punctuality and regularity of attendance.

Leadership: Ability to get work done by subordinates giving them

clear guidance.

Cost consciousness: Ability of foresee the resource requirement for

any task and complete assignments with minimum waste.

For Technical Staff only:

Safety consciousness: Habits and work practices in respect of

personal safety and safety of fellow employees.

Care of tool and equipment: Manner in which tool and equipment

handling is done ensuring better tool life and less maintenance and
damage.

For Non- Technical Staff only:

Dealing with others: Ability to appreciate others points of view and
approach in dealing with customers suppliers or any other outsiders in
conformity with organizational requirements.

RATING OF ATTRIBUTES
The common factors and the ratings under which the appraisal are made
are as follows:
QUANTITY OF OUTPUT
Extent of target fulfillment and completion of assigned tasks.
RATING
15-13

REASON
Output of work exceptionally high and above
expectations/ tasks assigned despite high degree
of difficulty of tasks.

12.10 Fulfillment of all tasks / targets despite constraints

9-7
efforts

Tasks assigned generally met with moderate

6-4

Output below target / expectation despite lack of

constraints Moderate effort.

3.1

Output far below expectation

Target / tasks not fulfilled
Low effort

QUALITY OF OUTPUT:
General excellence of output, the extent of work free from errors.
RATING

REASONS

15-13

Excellence quality of output accurate in work under all

conditions.
12-10

Does a through and accurate job

9-7

Generally produces work of acceptable quality

6-4

Work barely upto the mark

3-1

Works consistently below required standards.

COST CONTROL: Awareness of cost aspects in the job. Optimum

utilization of available resources and reduction of wastes.
RATING

REASON

10-9

Always makes optimum utilization of resources

8-7

All assigned tasks completed within the specific cost

parameters
6-5

Generally keeps within cost parameters and time

schedules
4-3

Conscious of the need to effect economy and manager

time
2-1
in time.

Wasteful in work Lacks desire to complete assignments

JOB KNOWLEDGE AND SKILS: Knowledge pertaining to the area of

work and related areas.
RATING

REASON

10-9

Excellent ability to anticipate future work needs ahead

of time
8-7

Good knowledge of the own jib and related areas

6-5

Knowledge adequate in own area

4-3

Knowledge inadequate in own and related areas.

2-1

Poor knowledge, no motivation to learn.

DISCIPOINE: Adherence to company policies and rules

RATING

REASON

10-9

Exemplary behavior and conduct

8-7

Good behaviors and conduct

6-5

Discipline is generally good

4-3

Conduct and discipline within manageable limit

2-1

Low in discipline

INITIATIVE: Ability to be self-reliant and move forward on a task without

outside direction.
RATING

REASON

10-9

Totally self-reliant A self-starter

8-7

Good initiative

6-5

Generally shows good initiative

4-3

Needs guidance, instructions and follow-up

2-1

Always requires to be told

COMMUNICATION :
Skills and desire to share available information with all concerned.
RATING

REASON

10-9

Excellent clarity of though and expression

8-7

Shares information with all concerned

6-5

Has moderate skill and desire to share information

4-3

Only believes in downward communication

2-1

Lacks both the skill and the will to communicate

MANAGEMENT OF HUMAN RESOURCES :

Effective control and utilization of sub ordinates, ensuring discipline, integrating
employees into teams and motivating them for higher levels of performance.
RATING

REASON

Excellent Control over and utilization of people

Good utilization of people

Plays basically a controlling functions

Has little control

Has no control over his / her people

CHAPTER VI
ANALYSIS AND INTERPRETATION

CHAPTER VI
ANALYSIS AND INTERPRETATION

Statement No. 1
Considering everything how would you rate your overall satisfaction with VSP
at the present time?
Tabulation Format
Sl.No.
1
2
3
4

Rating
Strongly agree
Strongly disagree
agree
disagree

Total

Respondents
49
10
41
0

Percentage
49
10
41
0

100

100

Interpretation
The they above tabulation format shows that the majority of 49% respondent
expressed Strongly agree to the above statement, 10 respondents expressed Strongly

disagree and 41 expressed that are happy being associated with VSP. Employees of

VSP are satisfied with the work with the organization.

Statement No. 2

Monetory & Non-Monetory benefits given for outstanding performance

Tabulation Format

Sl.No.
1
2
3
4

Rating
Yes
No
Sometimes
Never

Respondents
33
50
11
6

Percentage
33
50
11
6

100

100

Total

Interpretation

The above tabular format explains that Monetory & Non-Monetory

benefits given for outstanding performance. Here, 33% employees
strongly agree and 50% employees disagree 11% employees felt that
Monetory & Non-Monetory benefits are given sometimes and
remaining 6% employees are presumed that Monetory & NonMonetory benefits are never given .

Statement No. 3

Performance Appraisal system helps in assessing competency

Tabulation Format

Sl.No.
1
2
3
4

Rating
Yes
No
Never
Sometimes
Total

Respondents
56
18
25
0

Percentage
56
18
25
0

100

100

Interpretation

The above tabular format explains that Performance Appraisal system

helps in assessing competency employees Here, 56% of employees strongly

agreed,18% of employees disagreed and 25% of employees said never to the
above statement

Statement No. 4
performance appraisal help in creating an effective work environment & create positive
relationships

Tabulation Format
Sl.No.
1
2
3
4

Rating
Yes
No
Never
Sometimes
Total

Respondents
61
15
24
0

Percentage
61
15
24
0

100

100

Interpretation
The above tabular format explains performance appraisal help in creating an effective
work environment & create positive relationships .61% of employees

are strongly

agreed, 15% of employees disagreed, 24% of employees were presumed never to

the above statement.

Statement No. 5

low performance is due to lack of skill

Tabulation Format
Sl.No.
1
2
3
4

Rating
Strongly disagree
disagree
agree
Strongly agree
Total

Respondents
9
47
30
14

Percentage
9
47
30
14

100

100

Interpretation
The above tabular format explains that do low performance is due to lack

of skill . employees 9% of employees strongly disagreed, 47% disagreed 30% of

employees agreed and 14% strongly agreed with the above statements.

Statement No. 6
performance appraisal is the right way to asses human potential

Tabulation Format
Sl.No.
1
2
3
4

Rating
Strongly disagree
disagree
Strongly agree
agree
Total

Respondents
9
47
30
14

Percentage
9
47
30
14

100

100

Interpretation
The above tabulation explains is performance appraisal is the right way to asses human
potential 9%of employees strongly disagreed, 47% employees disagreed, 30% of

employees Strongly agreed and 14% of employees agreed to the above statement.

Statement No. 7
performance appraisal system forms proper basis for making decisions
regarding promotions and rewards system

Tabulation Format
Sl.No.
1
2
3
4

Rating
Strongly agree
agree
Disagree
Strongly Disagree
Total

Respondents
7
69
19
05

Percentage
7
69
19
05

100

100

Interpretation
The above table explains does performance appraisal system forms proper basis for
making decisions regarding promotions and rewards system. According to employees 7%
are Disagreed, 69% agreed and 19% of employees disagreed and remaining 5%
strongly disagreed on the above statement

Statement No. 8
Objectives of the Performance Appraisal System (PASS) are clearly spelt out

Tabulation Format
Sl.No.
1
2
3
4

Rating
Strongly agree
agree
Disagree
Strongly Disagree

Respondents
12
63
19
6

Percentage
12
63
19
6

100

100

Total

Interpretation
The diagram explains Objectives of the Performance Appraisal System (PASS) are clearly
spelt out are not. 12% employees strongly agreed ,63% employees agreed, 19%

employees disagreed and 6% employees strongly disagreed with the above

statement.

Statement No. 9

Time period of every Performance Review

Tabulation Format
Sl.No.
1
2
3
4
5

Rating
Once a week
Once a month
Every 3 moths
Every 6 months
Once a year
Total

Respondents
0
1
15
55
29
100

Percentage
0
1
15
55
29
100

Interpretation
The above tabular form explains how often should the Performance Review
should take place. 1% of employe felt performance appraisal should be conducted

once a month, 15% of employees felt performance appraisal should be conducted

every 3 months, 55% of employees felt performance appraisal should be conducted
once a month agreed, but most of employees felt performance appraisal should be
conducted every 6 months , 29 % of employees presumed that performance
appraisal should be conducted once a year.

Statement No. 10

Satisfaction level with the current Appraisal System

Tabulation Format
Sl.No.
1
2
3
4

Rating

Respondents
19
46
32
3

Percentage
19
46
32
3

Total

100

100

Very low
average
high
Very high

Interpretation
The above table tells Satisfaction level with the current Appraisal System
. 4% of employees persumed that Satisfaction level with the current Appraisal System
Is very low, 46% of emlpoyees felt average,32 % persumed that it is high and
remaining 3% of employees felt very high.

Statement No. 11

Do you think 360 degree appraisal system should be implemented at VSP?

Tabulation Format

Sl.No.
1
2
3
4

Rating
Yes
No
Never
sometimes
Total

Respondents
54
23
23
0

Percentage
54
23
23
0

100

100

Interpretation
The above tabulation tells us the employees view of implementing a 360
degree appraisal system in VSP.

shows that 54% of the employees are strongly

agreed, 23% of the employees are disagreed, 23% of employes persumed never
they want to implement 360 degree PAS.

Statement No. 12
performance Appraisal System in VSP provide counseling to low performance

Tabulation Format
Sl.No.
1
Yes
2
no
3
partially

Rating

Respondents
44
29
27

Percentage
44
29
27

Total

100

100

Interpretation
The above table shows performance Appraisal System in VSP provide counseling to low
performance.

44% of the employees strongly agreed, 29% of the employees

disagreed, 27% of the employees are partially agreed with the above statement.

Statement No. 13
training and development program after the performance appraisal

Tabulation Format
Sl.No.
1
2
3
4

Rating
yes
no
Never
sometimes
Total

Respondents
30
20
9
41

Percentage
30
20
9
41

100

100

Interpretation

The above tabulation tells that training and development program after the performance
appraisal is recommened. 30% of the employees strongly agreed, 20% of the

employees agreed, 09% of the employees persumed that they never sent to any
training and 41% employees are felt they have been sent to training and development
program after the performance appraisal .

SUGGESTIONS FOR A BETER PERFORMANCE APPRAISAL SYSTEM

Employees should get involved in the performance appraisal process and

self-evaluation of employees should be there.
An appreciation for good performance and proper guidance for
improvement is a must.
Peers, Subordinates, and customers should be included in Appraisal system
Regular feedback to employees is required that guides and encourages them
in their growth and career progression
Proper Training is needed for appraisal.
There should be transparency in discussing the appraisal report for the
development of workforce.

SUMMARY
The quality revolution has changed the ways in which many
organizations operate. With global competition, the drive to provide better
quality and to satisfy external and internal customers has been activated.
At Visakhapatnam Steel Plant, an attempt was made to integrate this
though in performance appraisal system.
Visakhapatnam

Steel

Plant

executives

performance

appraisal

system mainly aims at a Result Oriented executives. To bring this about

many activities are to be initiated, like performance based recognition,
competencies to handle future / current job, career growth etc and PAS
designed to provide the key inputs that all the above need to be activated.

Their system of appraisal, in the first instance, looked fool-proof

and well designed to suit the quality genre, for it has integrated in itself
some wonderful concepts. But, when this study is completed the result /
conclusion showed that the employees, who actually are participants in
the system, do feel that this system is not very effective. Surprised by this
result,

an

attempt

was

made

to

analyze

the

REASON

FOR

DISSATISFACTION of executives towards their performance appraisal

system. They are:

Mostly this system is not helping the person to assess his

capabilities

the

assessment

is

mostly

dependent

upon

the

obedience with his boss.

Self-assessment does not carry enough weightage. So, the drive to

sincerely appraise ones own self is lacking.

Potential review is integrated in the PAS but potential being the

capability to take up the future job cannot be judged by the
performance on the present job.

Training needs identified through self-assessment, Subordinates,

Peers and Customer assessment would be good but in present PAS
only

supervisor

assessment identifies

training

needs

of

the

employees. This indirectly is resulting in training programmes,

which do not cater to all the employees, being designed. And as
employees perceive that the training they asked for is not being
provided, there would be a little or no commitment at all.

The employees are assessed by a team of appraisers, who are their

superiors. The problem here is that there is no regular interaction
with the appraises, which may give a rating which can be mostly
subjective.

Subordinates feedback is truly absent in PAS which can give

effective evaluation in employee inter personal skill.

A good number of employees are not satisfied with the assessment

by the Reporting Officer and Reviewing Officer and they like to know
the final grades awarded to the employee by the PRC which is the
final one.

Employees feel that filling the application form is a routine job at

the procedure and method should keep on changing time to time.

While going through the analysis it seems that a good number of

people are uncertain about each questions asked to them which
clearly shows that there must be some fault existing in the system
which should be recognized and overcome. However, none of the
above reasons identified are so damaging that they cannot
overcome. With slight changes in appraisal format and rating
pattern the problems would be mostly solved.

CONCLUSION
Performance Appraisal system is very important to assess training
needs to effect promotions, and to give pay increase. There are two
methods in performance Appraisal system, those are modern and tradition
method.
Appraisal of performance proceeds in a set of pattern, the step
involved are defining appraisal objectives, establishing job expectations,
designing the appraisal programmes conduction performance interview,
and using appraisal data for different HR activities.
With the above finding the Visakhapatnam Steel plant can undergoes 360
degree Appraisal system with maximum respondents of the employees
are willing for the best appraisal system which can give them better
working environment in the environment, with better skill development,
with better pay, promotion, etc.
FACTOR TO BE INCLUDED INTO THE PRESENT CRITERIA FOR
PERFORMANCE EVALUATION:

Quality assignment of the work done

Disciplinary / administrative lapses.

Extraordinary occurrences

Problem solving skills

Productivity of work-output

Attitude towards work

Behavior and health

Efficiency

Capability to take up higher responsibility

Format vs. informal appraisal:

Formal appraisal:

In is usually occurs at specified time periods

once or twice a year. It is required by the organization for the purpose of

employees evaluation.
In Formal appraisal: It occurs whenever the supervisor feels the
need for communications.
Formal appraisal most often used for primary evaluation. However,
informal appraisals very helpful for more performance feedback, the
supervisor whenever feels the need, discuses performance change in he
employees work which helps in developing better interpersonal relations
and develops a positive environment, employee problems are identified
and discussed from

time to time which helps him improve his

performance.

Reasons why performance appraisal does not form a proper basis

for decisions regarding promotions:

Biased evaluation is not a proper indication of an employees

performance standards.

Reliance on seniority rather than on performance for performance

standards.

Manipulation, impression, ides and deludes scan damage the

credibility of the appraisal.

360 degree Performance Appraisal System as the best forms of

evaluation ones performances:
This is a new concept in performance appraisal, where the feedback
is collected form all around the employee, the superiors, the
subordinates, the peer group, and the customers.
The evaluation is very comprehensive in terms of the employees
skills, Abilities, styles, and job-related competencies. 360 degree performance
appraisal / feedback is an evaluation tool that utilizes opinions of many different people that
interact with the employee on a routine basis. It generates more accurate feedback by
gathering information from people about individuals performance as seen by the
organizational structure & expectations of their boss, self, peers, subordinates & customers.

SUPERIOR: - Evaluations by superiors are the most traditional source of

employee feedback. This form of evaluation includes both the ratings of
individuals by supervisors on elements in an employees performance plan
and the evaluation of programs and teams by senior managers.
SELF ASSESMENT: - This form of performance information is actually quite
common but usually used only as an informal part of the supervisor-employee
appraisal feedback session. Supervisors frequently open the discussion with:
How do you feel you have performed? In a somewhat more formal approach,
supervisors ask employees to identify the key accomplishments they feel best
represent their performance in critical and non-critical performance elements. In
a 360-degree approach, if self-ratings are going to be included, structured forms
and formal procedures are recommended.

PEERS: - With downsizing and reduced hierarchies in organizations, as

well as the increasing use of teams and group accountability, peers are
often the most relevant evaluators of their colleagues performance. Peers
have a unique perspective on a co-workers job performance and
employees are generally very receptive to the concept of rating each
other. Peer ratings can be used when the employees expertise is known
or the performance and results can be observed.
SUBORDINATES: - An upward-appraisal process or feedback survey. A
formalized subordinate feedback program will give supervisors a more
comprehensive picture of employee issues and needs. The feedback from
subordinates is particularly effective in evaluating the supervisors
interpersonal skills.
CUSTOMER: - The value of customer service feedback is most appropriate
for evaluating team or organizational output and outcomes. This feedback
can then be used as part of the appraisal for each member of the team.

This system has the following advantages:

360 degree feedback determines relationship between strategic
plan/vision
of institute & performance expectations.
It increases focus on customer service & reinforce TQM &
continuous
process improvement programs.
Team based culture can be a catalyst for attaining organizational
objectives.
Staff members become more inclined to consider factors beyond
HODs
expectations when exhibiting behaviors & striving for results.

It detects barriers to success.

Following lacunas come out
Inflexibility
Lack of initiative
Inappropriate leadership style
Unwillingness to learn recent technologies.
Each Dept. can use these results to plan departmental training
needs.
Easy to implement
Steps of implementation:

Design questionnaire
Feedback process
Evaluation & communication
Formation of developmental plans.
Follow up
Survey.

ADVANTAGES:

Ratings are likely to be accurate because these are done by

experts.

The method is more reliable and valid as it is job specific and

identified observable and measurable behavior.

Ratings are likely to be more acceptable due to employee

participation

The use of critical incidents is useful in providing feedback to the

employee being rated.

Limitations:

It is very consuming and expensive to develop BARS for every

job.

Behaviors used are more activity oriented than results oriented

SHORT COMINGS OF PERFORMANCE APPRAISAL:

The ideas approach to performance evaluation is that in which the
evaluator is free from personal biases, prejudices, and idiosyncrasies. This
is because when an evaluation is objective, it minimizes the dysfunctional
behavioral of the evaluator, which may be

detrimental to the

achievement of organizational goals. The factors which impede objective

evaluations are:

The halo effect The halo effect is a tendency to let the

assessment of an individual one trait influence the evaluation of that
person on other specific traits. There is this effect in appraisal
when the appraiser assigns the same rating to all traits regardless of
an employees actual performance on these traits.
The halo effect refers to the tendency to rate an individual
consistently high or low or average on the various traits, depending
upon whether the raters

Similarity Error - This type of error occurs when the evaluator

rates other

people in the same way he perceives himself. This

error also washes out if the some evaluator appraises all the
people in the organization.

Miscellaneous Biases Bias against employees on ground of sex,

race religion or position is also a common error in rating. For
example, a higher rating may be given to a senior employee. The
rater may also be influenced by organizational influence and give
higher rating to those holding higher positions.

Social differentiation Rating is sometimes impeded by the

evaluators style of behavior. Pious has classified raters as high
differentiation

that

is

using

most

of

the

scale;

or

low

differentiators that is, using a limited range of the scale. Low

differentiators tend to ignore or suppress differences, perceiving the
universe as more uniform than it really is.
High differentiators, on the hand, tend to utilize all available
information to the utmost extent and thus are better able to
perceptually

deny

anomalies

and

contradictions

than

low

differentiators social differentiation makes evaluations using

trait criteria unreliable.

Spill

Over

Effect

This type of error occurs when past

performance rating influences the current rating.

STEPS FOR MAKING APPRAISAL SUCCESSFUL

Existence of an atmosphere of confidence and trust.

The results of performance rather than personality traits should be

given due weight.

The supervisor should analyze the strengths and weaknesses of the

employee and advise him.

The appraisal programmed should be less time-consuming and less

only.

Overall impression of the individual is favorable or not. This means that

the halo effect allows one characteristic, or occurrence (either good or
bad) to influence the rating of all performance factors. The halo effect
problem can be alleviated by:

Providing a training programmer to the evaluators.

Restructuring the questions by requiring the evaluator to consider

each question independently.

Leniency or Strictness tendency

- Every evaluator has his own

value system which acts as a standard against which he makes his

appraisals. Relative to the true or actual performance an individual
exhibits, some supervisor have a tendency to be liberal in their
rating, that is they consistently assign high values to their
employees, while at other times they may have tendency to assign
consistently low rating.
The former tendency is known as position leniency error, while the
latter as negative leniency error. Both these trends usually arise
from varying standards of performance observed by supervisors and
from different interpretations of what they evaluate in employee
performance. The tendency can be avoided by holding meeting or

training sessions for raters so that they may understand what is

required of them in rating.

The Central tendency problem It is the most commonly found

errors. It assigns average ratings to all the employees with a view
to avoiding commitment or involvement; or when the rater is in
doubt or has inadequate information or lack of knowledge about the
behavior of the employee, or when does not have time at his
disposal. The ranking tools discussed earlier are aimed at avoiding
this problem.

The results of appraisal should be immediately communicated to the

employee.

A post appraisal interview should be arranged.

Training can be used to improve the standards of performance

appraisal.

The right appraisal tools should be chosen to minimize arising problem.

QUESTIONNAIRE
Study on performance appraisal system for executives at Visakhapatnam Steel Plant.

Dear Sir,

I am M.B.A (HR) student doing project in Visakhapatnam Steel plant on the

PERFORMANCE APPRAISAL. I request you sir, to spare some of your valuable time to
respond to the following questions. Your response will be treated as confidential and would
only be used for the purpose of my project work only.
NAME

EMPLOYEE NO

DISIGNATION:
DEPARTMENT

GENDER

: a) Male

b) Female

Below statements have been framed basing on a rating scale, using the code given below
for each statement, please tick your choice (

).

1. Are you happy being associated with Visakhapatnam Steel Plant?

a) Strongly disagree b) Disagree

c) Agree

d) Strongly agree.

2. Are any Monetory & Non-Monetory benefits given for outstanding performance?
a) yes
b) no
c) sometimes d) never.
3. Does Performance Appraisal system helps in assessing competency?
a) yes
b) no
c) sometimes.
4.Does the performance appraisal help in creating an effective work environment & create
positive relationships?
a) yes
b) no
c) sometimes.
5. Do you agree that low performance is due to lack of skill?
a) Strongly disagree b) Disagree c) Agree
d) Strongly agree.

6. Do you agree that performance appraisal is the right way to asses human potential?
a) Strongly disagree b) Disagree

c) Agree

d) Strongly agree.

7. Do you agree that performance appraisal system forms proper basis for making decisions
regarding promotions and rewards system?
a) Strongly disagree
b) Disagree
c) Agree
d) Strongly agree.
8. Objectives of the Performance Appraisal System (PASS) are clearly spelt out?
a) Strongly disagree

b) Disagree

c) Agree

d) Strongly agree.

9. According to you, how often should the Performance Review take place?
a) Once a week

b) Once a month

c) Every 3 months

d) Every 6 months.

e) Once a year.
10. What is your Satisfaction level with the current Appraisal System?
a) Very low

b) Average

c) High

d) Very High.

11.Do you think 360 degree appraisal system should be adopted by the organization?
a) yes

b) no

c) sometimes

d) never.

12. Does performance Appraisal System in VSP provide counseling to low performance?
a) Yes

b) No

c) Partially

13. Have you been sent to any training and development program after the performance
appraisal is done?
a) Yes

b) Never

c) Some times.

Thank
you

1. Are you happy being associated with Visakhapatnam Steel Plant?

a) Strongly disagree b) Disagree

c) Agree

d) Strongly agree.

90% of employees are happy being associated with Visakhapatnam Steel Plant and
only 10% of employees expressed their dis satisfaction towards their organisation

2. Are any Monetory & Non-Monetory benefits given for outstanding performance?
a) yes
b) no
c) sometimes d) never.

Here, 56% of employees persumed that organisation is not giving any

Monetory & Non-Monetory benefits for outstanding performance, 33% felt that they are
getting Monetory & Non-Monetory benefits and 11 % felt it is sometimes given not always

3. Does Performance Appraisal system helps in assessing competency?

a) yes
b) no
c) sometimes.
d) never

56% of employees persumed that Performance Appraisal system helps in assessing

competency and 38% felt Performance Appraisal system does not help in assessing
competency.

4.Does the performance appraisal help in creating an effective work environment & create
positive relationships?
a) yes
b) no
c) sometimes.
d) never..

61 % of employees felt the performance appraisal help in creating an effective work

environment & create positive relationships , 15% said no, and 24% persumed sometimes.

5. Do you agree that low performance is due to lack of skill?

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

56% of employees felt low performance is not due to lack of skill, it is because of will
and 44% of employees felt low performance is just only due to lack of skill

6. Do you agree that performance appraisal is the right way to asses human potential?
a) Strongly disagree b) Disagree

c) Agree

d) Strongly agree.

72% of employees agreed that performance appraisal is the right way to asses human
potential but nearly 28 % of employees disagreed

7. Do you agree that performance appraisal system forms proper basis for making decisions
regarding promotions and rewards system?
a) Strongly disagree

b) Disagree

c) Agree

d) Strongly agree.

76% of employees persumed that performance appraisal system forms proper basis for
making decisions regarding promotions and rewards system and 24% disagreed

8. Objectives of the Performance Appraisal System (PASS) are clearly spelt out?
a) Strongly disagree

b) Disagree

c) Agree

d) Strongly agree.

75% of employees felt that Objectives of the Performance Appraisal System (PASS)
are clearly spelt out and 25% disagreed.

9. According to you, how often should the Performance Review take place?
a) Once a week
e) Once a year.

b) Once a month

c) Every 3 months

d) Every 6 months.

In visakhapatnam steel plant Performance Appraisal takes place twice in every

year.most if the empployees opted the same. 56% of employees said that they want
Performance Appraisal twicw a year, 29%of employees said thay want Performance
Appraisal once a year, 15% of employees

10. What is your Satisfaction level with the current Appraisal System?
a) Very low

b) Average

c) High

d) Very High.

46% of employees felt that the performance appraisal is just average, 35% of
employees felt high and remaining 19% persumed their performance appraisal is very
low.

11.Do you think 360 degree appraisal system should be adopted by the organization?
a) yes

b) no

c) sometimes

d) never.

54% of the employees wants visakhapatnam steel plant to adopt 360 degree
appraisal system , 46% of employees doesnt want to adopt.

12. Does performance Appraisal System in VSP provide counseling to low performance?
a) Yes

b) No

c) Partially

d) never

44% of employees said that councelling is provided to low performance,29 % of employees

felt it is not provided and 27% of employees who partially agreed.

13. Have you been sent to any training and development program after the performance
appraisal is done?
a) Yes

b) No

c) never

c) Some times.

60% of employees said that they never been sent to any training till date , 39% of employees
said that they attened training session as recommended.

BIBLIOGRAPHY

S. KHANDKHA
K.K.AHUJAS (HRM)

S. CHAND PUBLICATION
KALYANI PUBLISHERS

ARUN MONAPPA& MIRZAS

PERSONAL MANAGEMENT
TATA McGRAWHILL

ASWATHPPA
MANAGEMENT

HRM&PERSONAL
TATA McGRAWHILL

P.SUBBA RAO
V.S.P.RAO & T.S.NARAYANA RAO

HRM&IR
HIMALYA PUBLISHERS
MANAGEMENT
PREMIER BOOK COMPANY