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About Coal India

Coal India Limited (CIL) is an Indian state-controlled coal mining company


headquartered in Kolkata, West Bengal, India. It is the largest coal producer
company in the world and contributes around 82% of the coal production in
India. It produced 494.24 Million tonnes of coal during FY 201415 and earned
a revenue of INR 954.35 billion from sale of coal in the same financial year. As
on 14 October 2015, Union Government of India owns 79.65% of the shares in
CIL and controls the operations of CIL through Ministry of Coal. In April 2011,
CIL was conferred the Maharatna status by the Union Government of India. As
on 14 October 2015, its market capitalisation was INR 2.11 trillion (US $32.59
billion) making it India's 8th most valuable company by market value.
To take care of energy requirements of India, the Central Government of India
did a nationalization of coal industry in the 1970s. By 1972, it acquired most of
the coking coal mines in India (226 coking coal mines) through Bharat Coking
Coal Limited (BCCL). Similarly, it acquired all 711 non-coking coal mines in
India through Coal Mines Authority Limited (CMAL). To consolidate the
businesses of both coking and non-coking coal under one entity, a formal
holding company in the form of Coal India Limited was formed in November
1975 to manage both the companies. Government of India held 100% of its
shares from 1975 till 2010.
Initial Public Offer

(IPO): In October 2010, Government of India offered 10% of

the equity shares of CIL (631.6 million equity shares) to public for sale at an offer
price of INR 245 per share (at face value of INR 10 per share). [17] The IPO got
over-subscribed by 14.17 times. Against an IPO issue size of INR 155 billion
(USD 3.5 billion) it received bids for INR 2400 billion crores (USD 53 billion)
making it the second highest collections in any IPO in India. [18] On the first day
of its listing on the stock market, its shares soared 40% higher than IPO
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price. With the listing, CIL become the fourth most valued company on the
Indian stock exchanges with a market value of INR 2.16 trillion. [19]
CIL was included in the 30-member BSE

SENSEX

on 8 August 2011. On 17

August 2011, it became the most valuable company in India, with a market
capitalization of INR 2.51 trillion. On 30 January 2015, in an Offer for Sale
(OFS), Government of India sold a further 10% stake in CIL. Priced at INR 358
per share, the sale fetched the government INR 225.5763 billion, making it the
largest ever equity offering in the Indian share market.
CIL is the largest coal producing company in the world. It produced 494.24 MT
(million tonne) coal during FY 2014-15. Coal India operates through 81 mining
areas in eight states in India. As on 1 April 2015, it has 430 coal mines out of
which 175 are open cast, 227 are underground and 28 are mixed
mines. Production from open cast mines during 2014-15 was 92.91% of total
production of 494.24 MT. Underground mines contributed to 7.09% of
production. CIL further operates 15 coal washeries, out of which 12 are for
coking coal and 3 are for non-coking coal with 23.30 MTY and 13.50 MTY
capacities respectively. It also manages 200 other establishments like
workshops, hospitals etc. Subsidiaries: Coal India produces coal through seven
of its wholly owned subsidiaries. Its another wholly owned subsidiary
CMPDIL carries out the exploration activities for other subsidiaries. CMPDIL
also provides technical and consulting services to it and to third party clients for
coal exploration, mining, processing and related activities. CIL also has a
wholly owned subsidiary in Mozambique, Coal India Africana Limited (CIAL)
for pursuing coal

mining

opportunities in that country. Coal India had 333,097

employees as on 31 March 2015, out of which 314,259 were Non-Executives


and 18,838 were Executives. It spent Rs. 298.74 billion on Employee benefits
which accounted for 50.54% of the total expenditure incurred during the FY
201415.

Coal India Subsidiary

Revenue
Employees
Subsidiary

INR

(As on

Coking

billion

coal

(FY

(MT)

Noncoking
coal

Total Coal
Production
(MT)

(MT)

31.03.2015)

2012-13)

Bharat Coking Coal Limited (BCCL)

56,051

89.37

26.970

4.243

31.213

Central Coalfields Limited (CCL)

45,011

92.38

16.156

31.905

48.061

Eastern Coalfields Limited (ECL)

68,681

97.40

0.043

33.868

33.911

Mahanadi Coalfields Limited (MCL)

22,259

120.93

107.894

107.894

Northern Coalfields Limited (NCL)

16,226

99.86

70.021

70.021

South Eastern Coalfields Limited (SECL)

67,800

176.48

0.157

118.062

118.219

Western Coalfields Limited (WCL)

50,071

74.23

0.330

41.957

42.287

3,629

6.05

Central Mine Planning and Design


Institute(CMPDI)
Coal India Africana Limited
Sub-total

329,728

756.72

43.656

407.950

451.606

North Eastern Coalfields

2,027

0.605

0.605

Dankuni Coal Complex

474

CIL Headquarters

868

13.78

Total

333,097

770.49

43.656

408.555

452.211

Joint Ventures: CIL has two joint ventures:


1. International Coal Ventures Private Limited (ICVPL) was formed in 2009 for
acquisition of coking coal properties outside India. CIL holds 2/7th share in paid up
capital of ICVPL.
2. CIL-NTPC Urja Pvt. Limited is a 50:50 JV between CIL and NTPC, formed in April
2010 for acquisition of coal blocks in India and abroad.
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Factors which led up to Nationalization of Coal Industry in India

Nationalization of coal industry in India in the early seventies were a fall out of
two related events. In the first instance it was the oil price shock, which led the
country to take up a close scrutiny of its energy options. A Fuel Policy
Committee set up for this purpose identified coal as the primary source of
commercial energy. Secondly, the much needed investment needed for growth
of this sector was not forthcoming with coal mining largely in the hands of
private sector. The objectives of Nationalization as conceived by late Mohan
Kumaramangalam were; Conservation of the scarce coal resource, particularly
coking coal, of the country by

Halting wasteful, selective and slaughter mining.

Planned development of available coal resources.

Improvement in safety standards.

Ensuring adequate investment for optimal utilization consistent with


growth needs.

Improving the quality of life of the work force.

Moreover the coal mining which hitherto was with private a miner suffered with
their lack of interest in scientific methods, unhealthy mining practices etc. The
living conditions of miners under private owners were sub-standard.
CIL's equity shares are listed on Bombay

Stock Exchange

where it is a constituent

of the BSE SENSEX index, Scrip wise Weight ages in S&P BSE SENSEX SE India
31 Aug 2013 and the National

Stock Exchange of India

where it is a constituent of

the S&P CNX Nifty. Download List of CNX Nifty stocks (.csv) NSE India 31 Aug
2013
Shareholding: On 30 January 2015, 79.65% of the equity shares of the company
were owned by the Government of India and the remaining 20.35% were owned
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by others. On 30 January 2015, in an Offer for Sale (OFS), Government of India


sold a further 10% stake in CIL. Priced at INR 358 per share, the sale fetched
the government INR 225.5763 billion, making it the largest ever equity offering
in the Indian share market. On 18 November 2015, Government of India
approved another 10% stake sale in CIL.

Shareholders (as on 30-January-2015)

Shareholding

Government of India

79.65%

Foreign Institutional Investors (FII)

9.04%

Domestic Institutions

01.28%

Non-Institutions

2.86%

Total

100.0%

Major Events and Milestones:


2011-12

Maharatna Status

Coal India Limited was granted the 'Maharatna' status on 11 April, 2011 by the
Government of India thus becoming only the 5th PSU in the country, of a total of 215
Central Public Sector Enterprises (CPSEs), to have been conferred with this status.
Government of India has introduced the Maharatna scheme in February 2010 for Central
Public Sector Enterprises, in order to empower the mega CPSEs to expand their
operations and emerge as global giants. So far, the select club has only five members. The
objective ofMaharatna is to delegate enhanced powers to the Boards of the identified
large Navratna CPSEs, fulfilling the specified criteria, to facilitate expansion of their
operations both in domestic as well as global markets.

COAL INDIA JOINS SENSEX


Coal India made it to the 30-stock Sensex, on 8 August 2011, globally considered to be the
barometer of the Indian economy, in short span of nine months since its listing on 4
November 2010. No other company has made it to the index in such a short time. And then
Coal India's raise to the top came in just seven trading sessions since its entry to SENSEX.
This is considered to be a remarkable accomplishment.
Most Valued Company in the country
On 17 August 2011, Coal India emerged as the Most Valued Company in the country in terms
of Market Capitalization - the pinnacle of success every business entity dreams of and aspires
for. The company's value stood at a whopping Rs.2,51,296 Crores. What made the
achievement all the more significant was that a public sector company could attain such lofty
heights.
CMPDI in a gas recovery project
Central Mine Planning and Design Institute (CMPDI) the Ranchi based mine consultancy
subsidiary of Coal India Limited has been identified for participation in a Green House Gas
recovery from coal mines and un-mineable coal beds and conversion to energy (GHG2E) - an
EU funded Research Project from India along with Indian Institute of Technology,
Kharagpur. The basic objective of the project is to contribute to global greenhouse gas
reduction by controlling methane emission from coal mines and maximizing utilization of
produced methane. Moonidih and Sudamdih mines of BCCL have been considered for taking
up this research project. The total time schedule for the project is 42 months. Officials from
CMPDI participated in the kick-off meeting held in Slovakia from 6th - 9th Oct.'11. A team
comprising of Prof. Sevket Durucan of Imperial College of Engineering, London and Prof.
K.Pathak of IIT, Kharagpur and other representatives of both the institutions visited CMPDI
on 16th Nov 2011 and the matter was discussed in details regarding the implementation of the
project. The team along with CMPDI officials also visited Moonidih mine and BCCL for
detailed discussions. CMPDI has received an advance payment of EURO 47,867.35 for the
Project.
Finalizes National Coal Wage Agreement IX in record time
Coal India Limited (CIL) on 31 January 2012, finalized the wage agreement for its 3.63 Lakh
strong non-executive work force by giving a 25% increase on gross wages as of 30 June
2011. The wage hike that would be effective retrospectively from 1 July 2011 is for a fiveyear period. With the conclusion of the wage negotiation, Coal India for the second time
becomes the first Central Public Sector Undertaking in the country to successfully finalize the
wage pact. The NCWA IX was concluded in a record time of only 6 months since the
formation of JBCCI in August 2011. Never in the history of CIL was a wage agreement
concluded so swiftly.
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2010-11
Coal India Limited signed a Memorandum of Understanding (MoU)
Ministry of Coal on 31st March, 2011 - for its key performance areas for the fiscal 201112. As per the MoU for the fiscal 2011-12, CIL's targeted production and coal off-take
have been fixed at 452.00 Million Tonnes (MTs) and 454.00 MTs respectively for
attaining an 'Excellent' rating. Incidentally for previous three fiscal years i.e 2007-08,
2008-09 & 2009-10 CIL was rated 'Excellent'.
Under the present MoU for 2011-12 special emphasis on Research & Development,
Corporate Social Responsibility, Sustainable development & Corporate Governance have
been made as major thrust areas. To attain the targeted off-take, CIL has sought 175
rakes/day for 2011-12 as against the average availability of 156.8 rakes/day & 161.9
rakes/day during previous and current fiscal years . Average growth of coal movement
through Rail is only around 2 % during the last 3 years whereas CIL has envisaged a
growth of around 13.5 % through rail for achieving above target.
Since last year (2010-11) expenditure on CIL R&D activities has taken a quantum jump
from 2009-10 level of around Rs 15 Crores annually to Rs.30 crores. CIL has also
stepped up its target for expenditure on CSR activities in line with DPE's guideline.

Coal India Limited bagged a prestigious first ever international award in Geneva on 7
March 2011. CIL was conferred with the "Century International Quality ERA Award
(CQE)" in the Gold Category in recognition of commitment to Quality, Leadership,
Technology and Innovation. It was stated that Coal India represents success for India in
the Business world. The awards were given by Business Initiative Directions (BID) - a
leading
private
organization
focused
on
the
Quality
Mix
Plan.

Coal India Limited signed a Memorandum of Understanding with The Shipping


Corporation of India Limited in December 2010 for promoting a Joint Venture Company
(JVC) In order to create comprehensive end-to-end logistic solution from load port to
consuming end. Currently imported coal is supplied by both private and PSU players at
consuming ends, particularly to power stations, with comprehensive quality and quantity
assurance, whereas, in case of indigenous coal, CIL's term of sale is Free on Rail at
Colliery
Primary objective of the JVC are
1.

Owning/chartering of vessels

2.

Draft surveying

3.

Inspection of cargo

4.

Stevedoring at unloading port in India including unloading of vessels, customs


clearance, shore clearance, and stacking

5.

Indenting wagons from railways, loading of wagons, quality analysis and delivery of
coal at power stations
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4th November was CIL share was listed at Rs.291/- and closed over Rs.342/- on the
first day of trading. Most importantly, a national asset was offered to public as 'peoples'
ownership' in PSUs.

21 October 2010, the day CIL's IPO closed, would be etched as a historic event in the
annals of Coal India Limited. The day unraveled the value and the true potential of CIL.
Innumerable road shows involving countless man hours of effort across the country and
in US, Europe markets had resulted in the grand success of CIL's IPO.
CIL's IPO the largest so far in Indian capital market was over-subscribed 15.3 times. The
resounding success of record shattering result of the company's public offer with the
aggregate funds flowing amounted to Rs.2,35,276.55 crores which was so far unheard of
in the Indian capital market. The over-subscription of the issue happened in all the three
major segments i.e. Qualified Institutional Buyers (QIB), High Networth Individuals
(HNI) and retail. The QIB for which there was a reservation to the extent of 50% of the
net issue of the shares, the over-subscription was as much as 24.62 times. Around 784
QIB investors had put in over US dollar 38 billion i.e. Rs.1,71,469.64 crores which by
itself is also an all time high in the history of Indian IPO. In the retail segment nearly
16.36 lakhs applications were received - the highest among all PSU IPOs so far
amounting to Rs.63,639.26 Crores. This is also the highest so far in the Indian capital
market. Interestingly, the foreign investors alone had put in around US $ 27 Billion which
is equal to first ten months of FII investment in India this year.
CRISIL the leading credit rating agency in the country has assigned maximum grading
of 5 to CIL's proposed IPO - the best for any public sector. The grading indicates that
the fundamentals of the IPO are strong compared other listed securities in the country.
2009-10
Standing

Award of the Scope Excellence Award to our Company by the


Conference

of

Public

Enterprises

for

the

year

2007-08.

Establishment of Coal India Africana Limitada, a foreign subsidiary in Mozambique;


Conversion

of

our

Company

into

public

limited

company.

Award of 'Mini Ratna' status by the Department of Public Enterprises, GoI, to


CMPDIL.
Receipt by our Company of a composite score of 1.47 and rating as "excellent" for the
year 2007-2008 by Department of Public Enterprises, Ministry of Heavy Industries &
Public Enterprises, GoI.
8

2008-09

Award of 'Navratna' status to our Company by the Department of

Public Enterprises, GoI, for our operational efficiency and financial strength, which
affords

greater

operational

freedom

and

autonomy

in

decision

making.

Overall production of coal by our Company and our Subsidiaries, crossed 400 million
tonnes.
2007-08

Award of 'Mini Ratna' status by the Department of Public Enterprises,

GoI, to CCL.
2006-07
GoI,

Award of 'Mini Ratna' status by the Department of Public Enterprises,

to

our

Company

and

to

MCL,

NCL,

SECL

and

WCL.

Decline in debt as a percentage of net worth from 66 % in 2001-2002 to 10 % in 2006


-2007.
2005-06

Rating of 'AAA/Stable', indicating highest degree of safety with regard

to timely payment of interest and principal, awarded by CRISIL in respect of the Rs.
250

million

Introduction

of

bond
sale

programme
of

coal

of
through

our

Company.

'e-auction

method';

ECL and BCCL reported profit of Rs. 3,638 million and 2,026.67 million in Fiscal
2006.
2003-04

Overall production of coal by our Company and our Subsidiaries

crosses 300 million tonnes.


2001-02

Laying down of a minimum internal rate of return of 12% at 85%

capacity utilization as cut off for the development of a project.


1997-98

Corporatization of the financial flow between our Company and

Subsidiaries, such that our Company is to receive only dividends under applicable
policy from our Subsidiaries and the corpus of our Company was to be utilized to
provide strategic support to a loss making entity only for, inter alia, maintaining their
productive capital assets.
Sanction of loan of USD 1.03 billion from the World Bank and the Japanese Bank for
International Co-operation for implementing 24 highly viable open case projects with
global sourcing of equipments, of which USD 484.40 million was availed during the
period between Fiscal 1998 to Fiscal 2004.
1996-97

Rating of 'A+', indicating adequate safety with regard to timely

payment of interest and principal, awarded by CRISIL in respect of the Rs. 4,000
million bond issue by our Company.

Adoption of financial viability as the basis for approval of coal development projects.
Discontinuation of retention prices scheme and the Coal Price Regulation Account
(CPRA), with the deregulation in prices of certain grades of coal.
1995-96

Approval of a financial restructuring package by the Government,

whereby Rs. 8,917 million of interest liability was waived, Rs. 9,041.8 million of plan
loan repayment arrears was converted to preference equity and Rs. 4,326.4 million of
non plan payment arrears were allowed a moratorium for repayment and interest
accrual for a period of three years, to be repaid in three equal installments.
A profit of Rs. 6,116 million in Fiscal 1996 was earned by our Company.
1992-93

Formation of MCL as our Subsidiary to manage mines Talcher and IB

valley in the state of Orissa.


1991-92

Uptrend of profit started in 1991 and our Company earned a profit of

Rs. 1,670 million in Fiscal 1992.


Overall production of coal by our Company and our Subsidiaries crossed 200 million
tonnes. Fixing of coal prices once a year to compensate for increase in price of inputs
on a normative cost basis, and adoption of the escalation formula prescribed by the
Bureau of Industrial Cost and Prices ("BICP").
1987-88

'Blasting Gallery Method' introduced at East Katras mine under BCCL

and Chora mine under ECL.


1985-86

Formation of NCL and SECL as Subsidiaries of our Company, to

manage certain mines managed by WCL and CCL.


1981-82

Introduction of retention prices of coal by amending the Colliery

Control Order, 1945 by notification dated March 31, 1982, in respect of our
Subsidiaries.
1980-81
washery,

Construction of five new washeries: Moonidih washery, Ramgarh


Mohuda

washery,

Barora

washery,

Kedla

washery.

Overall production of coal by our Company and our Subsidiaries crossed 100 million
tonnes.
1979-80

Construction of the low temperature carbonized plant started in

Dankuni Coal Complex.


The pricing policy of CMPDIL was reviewed to ensure that the company was working
on a commercial line instead of working on "no profit no loss" basis.

10

1975-76

Change of name of our Company to 'Coal India Limited'.

Incorporation of CMPDIL, ECL and WCL, and formation of BCCL, CCL, CMPDIL,
ECL and WCL, as our Subsidiaries.
1973-74
in

coal

Nationalization of coal mines, in order to provide for a higher growth


sector

to

meet

the

growing

energy

needs

Incorporation of our Company as 'Coal Mines Authority Limited'.

11

of

the

country.

Awards

Coal India Limited (CIL) was conferred with two Corporate Social
Responsibility Awards on 18 February 2013: 'Global CSR Excellence and
Leadership Award' for Best Corporate Social Responsibility Practices and
'Blue Dart Most Caring Companies of India Award'.
For 2012, CIL earned a ranking of 48 on overall global performance in
the 'Platts Top 250 Global Energy Company Rankings'.
CIL features on the Forbes Global 2000 rankings for 2012 at position
377.Coal India on the Forbes Global 2000 List Forbes 31 May 2013 19
October 2013
In December 2012, it was ranked as the 9th on the Fortune India
500 list.IOC retains top slot in Fortune 500 India list The Hindu 15
December 2012 19 October 2013
CIL was conferred with "Company of the Year Award" in a function
organised by Indian Chamber of Commerce and Department of Public
Enterprises (DPE) in September 2011 at 2nd Summit on 'India Public
Sector Agenda @2020' at New Delhi.

VISION
To emerge as a global player in the primary energy sector committed to provide
energy security to the country by attaining environmentally & socially
sustainable growth through best practices from mine to market.

MISSION
To produce and market the planned quantity of coal and coal products
efficiently and economically in an eco-friendly manner with due regard to
safety, conservation and quality.
12

CORPORATE STRUCTURE

Eastern Coalfields

INTERNAL ASPECTS

Products & Services


COKING COAL:
These coals, when heated in the absence of air, form coherent beads, free from
volatiles, with strong and porous mass, called coke.

These have coking properties


Mainly used in steel making and metallurgical industries
Also used for hard coke manufacturing

13

SEMI COKING COAL:


These coals, when heated in the absence of air, form coherent beads not strong
enough to be directly fed into the blast furnace. Such coals are blended with
coking coal in adequate proportion to make coke.

These have comparatively less coking properties than coking coal


Mainly used as blend-able coal in steel making, merchant coke
manufacturing and other metallurgical industries

NLW COKING COAL:


This coal is not used in metallurgical industries. Because of higher ash content,
this coal is not acceptable for washing in washeries. This coal is used for power
utilities and non-core sector consumers.
NON-COKING COAL:
These are coals without coking properties.

Mainly used as thermal grade coal for power generation


Also used for cement, fertilizer, glass, ceramic, paper, chemical and brick
manufacturing, and for other heating purposes

WASHED AND BENEFICIATED COAL:


These coals have undergone the process of coal washing or coal beneficiation,
resulting in value addition of coal due to reduction in ash percentage.
Used in manufacturing of hard coke for steel making
Beneficiated and washed non-coking coal is used mainly for power
generation

Beneficiated non-coking coal is used by cement, sponge iron and other


industrial plants

MIDDLINGS :
Middlings are by-products of the three stage coal washing / beneficiation
process, as a fraction of feed raw coal.
14

Used for power generation


Also used by domestic fuel plants, brick manufacturing units, cement
plants, industrial plants, etc.

REJECTS:
Rejects are the products of coal beneficiation process after separation of cleans
and / or middlings, as a fraction of feed raw coal.

Used for Fluidized Bed Combustion (FBC) Boilers for power generation,
road repairs, briquette (domestic fuel) making, land filling, etc.

CIL COKE / LTC COKE :


CIL Coke / LTC Coke is a smokeless, environment friendly product of the
Dankuni Coal Complex, obtained through low temperature carbonisation.
Used in furnaces and kilns of industrial units
Also used as domestic fuel by halwais, hotels, etc.

COAL FINES / COKE FINES :


These are the screened fractions of feed raw coal and LTC coke / CIL Coke
respectively, obtained from the Dankuni Coal Complex and other coke oven
plants.
Used in industrial furnaces as well as for domestic purposes

TAR

HEAVY

OIL

LIGHT

OIL

SOFT

PITCH

These are products from Dankuni Coal Complex using low temperature
carbonization of non-coking coal in vertical retorts.

Used in furnaces and boilers of industrial plants as well as power houses,


oil, dye, pharmaceutical industries, etc.

15

DELEGATION OF POWER
CIL exercise the power delegated under DPE guidelines to the MOU signing companies and
also powers delegated by the ministry of Coal to Coal India Ltd. from time to time.
Obligation of the Government:
In order to enable CIL to achieve its objectives and the level of performance set in the MOU,
the Government on its part undertakes to: Assist CIL in setting adequate supply of railway wagons.
Assist CIL in acquisition of land and getting clearance for forest land by taking up the
matter with MOEF and the respective state government so that land acquired under
the LA/CBA Act is handed over and the forest clearance given under time bound
programmed.
Assist CIL in arranging and getting necessary approval for internal credit.
Assist CIL in recovery of outstanding coal sale due.
Assist CIL in restructuring of ECL and BCCL in view of report submitted by
consultant.
MONITORING
CIL has to submit a quarterly report of performance for each of the performance indicators.
The quarterly target in respect of indicators is same as reflected in the annual action plan
2001-02 of the Ministry of coal.
The Performance evaluation is based on its annual performance.

16

PERFORMANCE RATING:The performance rating is done in the following way:5% more than the target

- Excellent

Equal to the target

- Very Good

5% less than the target

- Good

10% less than the target

- Fair

15% less than the target

- Poor

CIL Board has followings members:

Chairman CIL

Functional Director

Additional Secretary, MCC

Joint Secretary & financial advisor , MOC

Representative from railway board

Two CMDs of subsidiary company.

SUBSIDIARY COMPANIES

COMPANY
ECL
BCCL
CCL
WCL
NCL
SECL
MCL
NEC
CMPDI

HEADQUARTERS
Sanctoria
Dhanbad
Ranchi
Nagpur
Singrauli
Bilaspur
Sambhalpur
Meghalaya
Ranchi

17

YEAR OF CORPORATION
1975
1973
1975
1975
1986
1986
1992
1975
1975

Coal India and its subsidiaries

HIGHLIGHTS OF CCL

18

Central Coalfield Limited has been on the coal map the country as a public sector on
October, 1956, under different names. In the beginning it was known as National Coal
Development Corporation, then Central Division of Coal mines Authority , and finally under
its present nomenclatures at Ranchi, Jharkhand.
The Central Coalfield Limited is one of the subsidiaries of coal India Limited registered
under the Companys Act 1956 in the year 1975. The mining and extraction of coal is
entrusted to a public sector organization Coal India Limited. The Company is divided into
eight subsidiaries and Central Coalfield Limited is one of them.
The company presently known as CCL has a history of more than three decades. Pursuant to
the Industrial Policy Resolution of 1956, a company was formed by the names of M/S
Hindustan Collieries Private Limited, on 5 September, 1956. The name was changed to the
National Coal Development Corporation. The NCDC was formed on 01.10.1956 with 11
state railway collieries in Orissa and Madhya Pradesh.
Like other industries and organization, the affair of CCL too is not settled by its owner (Govt.
of India). Rather the professional team of management called Board of Directors (BOD) is
appointed by the Govt. of India to manage the affair of CCL.
It consists of chairman cum-Managing Director, four functional Directors in charge of
operations, personnel, finance and projects & planning. Besides part-time Directors as may
be appointed by the Govt. from time to time. At present CCL have 67 collieries and 7
washeries under revenue production. Some of the state collieries are very old, at least one of
which that in Giridih has crossed century in the year 1961. It also has seven coal washeries , a
coal oven plant , besides workshop and handling plants spread over in Hazaribagh , Palamau,
Ranchi, Bokaro , Giridih, and Chatra district.

CCL is the major source of medium coking coal in India. CCLs other important activities are
beneficiation of medium coking coal for steel plants through its chain of coal washeries and
manufacture of soft coke for domestic kitchen. Most of the production (88%) comes from
surface mines. The productivity of underground mines and many of the surface mines is low,
but because of high priced of coking coal, the company has been making marginal profit and
losses with the recent deregulation of coking coal price the profitability of the company is
expected to improve. The command area of CCL companies 10 coalfields namely Giridih,
East Bokaro, West Bokaro, Ramgarh-kaitha, North Karanpura, South Karanpura, Auranga,
19

Hutar, Daltongang and Giridih/ Jayanti. Chairman-cum-Managing Directors is the full time
executive of the company. The collieries and washeries have been grouped into 15 areas each
headed by chief General Manager/General Manager. The coal projects are headed by project
officer

MAJOR COLLIERIES OF CCL

1. BARKASAYAL
2. ARGADA
3. NORTH KARANPUARA
4. RAJHARA
5. PIPARWAR
6. RAJRAPPA
7. KUJU
8. HAZARIBAG
9. BOKARO & KARGALI
10. DHORI
11. KATHARA
12. KATHARA

COAL WASHERIES OF CCL


Coking Coal Washeries
Location
1. Rajrappa
20

2. Kedla
3. Sawang
4. Kargali
Non Coking Coal Washeries
Location
1.

Piparwar

2. Gidi
3. kathara
Coal-Type and Constitutes
Vegetable matter subjected to diverse geological processes and pressures give birth to the
sedimentary rock called coal.
Chemically coal is made of carbon, hydrogen, oxygen,nitrogen,and some other
impurities. The main constitutes of coal are:Carboneous

Non Carboneous

Vitarin

Ash

Clarin

Moisture
Volatile matter
Fixed Carbon

Broadly speaking , coal is of four types:


1.Anthracite
2.Bituminous
3.Lignite
4.Peat
CCL is mainly concerned with bituminous coal. These are mainly of two types:1. Coking coal
2. Non-coking coal

21

Coking coal is that variety of coal which has better coking properties and which can be
converted into hard coke suitable for iron and steel industry and metallurgical purpose.
Coking coal is of three types:1. Prime coking coal
2. Medium coking coal
3. Semi coking coal
GRADES OF COAL
Coal is divided into following grades according to uhv (useful heat value)
COKING

NON COKING

St-1steel grades 1

GRADES A (>6200kcal/kg)

St-2steel grades 2

GRADES B (>5600kcal/kg)

W-1 washeries grades 1

GRADES C (>4940kcal/kg)

W-2 washeries grades 2

GRADES D (>4200kcal/kg)

W-3 washeries grades 3

GRADES E (>3360kcal/kg)

W-4 washeries grades 4

GRADES F (>2400kca/kg)
GRADES G (>1300kcal/kg)

MISSION AND VISION OF CCL

VISION

22

To become a World class, innovate, competitive & profitable Coal Mining Operation to
achieve customer satisfaction as top priority, Committed to create eco-friendly mining.

MISSION
The mission of CCL is to produce and market the planned quantity of coal and coal products
efficiently and economically with due regard to safety, conservation and quality.
The main thrust of CCL in the present context is to orient its operations towards market
requirements maintaining at the same time financial viability to meet the resource needs.

Product Profile

Gradewise availability of Raw Coal


Available Grade of Coal
Non-coking Coking
Grade U.H.V. (K Cal/Kg.)
Non-Coking

Coking

23

Grade

U.H.V. (K Cal/Kg.)

Grade

% Ash

Exceed 6200

W-I

Between 18-21

Between 5600-6200

W-II

Between 21-24

Between 4940-5600

W-III

Between 24-28

Between 4200-4940

W-IV

Between 28-35

Between 3360-4200

Between 2400-3360

Between 1300-2400

METHOD OF EXTRACTION OF COAL

Coal is obtained from the earths surface called mines.

Mines are of two types.


1.OPENCAST MINES
In this type of mine with the help of technology attempt is made to reach the level of coal
seam by removing the overburden (i.e. after removing everything lying above the coal seam).
For this heavy machines like HEMM (heavy Earth Moving Machine) are used the manpower
is reduced.
2. UNDERGROUND MINES
In this type of mine technology attempts to reach the coal seam not by removing the
overburden but through a pit. These mines are in those areas where coal seam is deep. The
overburden remains intact the workers dig the ground.
The workers are sent to the level of coal seam either through shaft (an inclination) or through
lift, i.e. DOLI. There is optimum utilization of manpower in these mines.
24

In this type of mines there is high risk of accidents due to the fall of roofs and sides. In order
to avoid these accidents thrust is given to provide support of green roof with steel supports
like steel cogs, pit props, roof, Bolts, W-straps, etc

HUMAN RESOURCE MANAGEMENT IN CCL

Human Resource is treated as a major. For improvement of production and productivity in


CCL. For achieving the goals, special thrust is given by motivating & providing opportunity
to every member of the organization to discover, unlock & develop their talent potential &
wider the horizon through continuous learning.
One of the thrust areas of the company is to impart need basic retraining of
underutilized/surplus manpower and employees appointed under SFVRS (Special Female
VRS). Newly recruitment and out sees and inductees under NCWA scheme are developed as
a work force to compete in the statutory examinations conducted by DGMS, Electricity
Board etc.
During 1999-2000,
Several courses were conducted covering topics like Leadership Development, TQM-ISO
9000, Techno Managerial topics, Team Building, Work Ethnics, New Industrial policy,
Contract Management, Quality Assurance, Statutory Cources, Advance Technology, Decision
Making, Computer Education and Applications, Management Development programme,
Safety Management etc.
Following are the training Institutes of CCL:25

1. Management Training centre, Ranchi.


2. Bhurkunda training Institute, Bhurkunda
3. Central Excavation Training Institute, Barkakana.
4. Security Training Institutes, Gandhi nagar, Ranchi.
5. Institute of Occupational Medicine and health centre, Gandhinagar, Ranchi.
Computer Appreciation Program (CAP) is being regularly conducted at MTC. Training
programmed for pit safety committee members and workman inspector is also being regularly
conducted

MAIN OBJECTIVE OF CENTRAL COALFIELDS LIMITED


1. To carry on business of coal mining
1.1 Acquisition of coal mining.
1.2 To produce or otherwise engage generally in the production, sale and
of and its by-product.
1.3 Mining coal, manufacturing coke and other business.
1.4 Manufacturing, trading and other business.
2. Recognition and reconstruction of coal mines taken over by government.
3. Policy formulation and advisory function.
4. To finance replacement expenditure.
5. To develop technical know-how.
6. Exploration and prospecting.
7. To manufacture and sell coal as a patent fuel.
8. To carry on mining and carrying coal other by products incidental there to.
9. To acts as trader of coal and coke and other by-products directly or through agents.
10. To manufacture coke and other by-products of coal.
26

disposal

11. To act as colliery and mines proprietors coke manufacture in all their respective
branches.
The main project objective are to support the market-oriented reform India is undertaking in
the sector and specially to provide financial and technical support of coal Indias effort to
make itself commercially viable and self-sustaining under pinning Indias broad drive to
achieve economic growth.
The project also aim to increase domestic supplies of coal by planning investment in the most
profitable 24 opencast mines of coal India for the power sector and other industries until
imports and production from private investments can fill the merging supply gap.

ROLE OF CENTRAL COALFIELDS LIMITED

1. To get implemented the policy and program laid down by the government of

India. CIL

ensures working in accordance with the guidelines and directions issued by them from time to
time.
2. To keep them informed of the program with regard to implementation of their policies and
progress in accordance with the guideline and direction issued by them.
3. To plan and carryout all operations in such a manner that there is no risk of loss, injury or
damage to the health of workman.
4. To adopt techniques and methods working such that loss of coal reserves by ways similar
to other reasons and blockage of reserved in barriers etc. in the east.
5. To draw annual plans for production, preparation and dispatch of coal connect activities
keeping in priority wise demand.
6. To maintain store of equipment, spares and other material to that necessary items are
available in time without unduly blocking capital for propose.

27

7. To draw out inputs of various equipments that is plant and machinery, stores & spares, land
and building etc.
8. To install maintain and operate plant and machinery property so that they are available for
the working to maximum extend and to utilize them in the best possible manner.
9. To keep down cost in all possible ways so as to get maximum profit.
10. To arrange for necessary fund and utilize that in the most advantageous manner.
11.To take care of housing, water supply, recreational, education, medical & other

facilities

for the social security of employees to the extend it is reasonable & practicable.
12. To maintain harmonious industrial relation.
13. To arrange for security of companys properties collective security of employees & their
properties maintenance of law & order in coordination with Government machinery.
14. To construct new project to meet the future need & to ensure timely communication &
completion of jobs.
15. To promote marketing of products and to realize sales proceeds promptly.
16. To carry out studies with the view to asses to normal standard of performance in different
spheres and to develop & implement incentives to increase efficiency.

28

PRESENT MANAGEMENT AT CCL

The Chairman cum Managing Director is the whole time chief executive of the company.
The chief vigilance officer is responsible to see that the work is done as per the set rules
producer and guidelines and being the guilty to book secretary to board is responsible for
keeping the meeting agenda.
The board of directors consists of functioned directors and nominees from the state and
central government. The functional Directors are personnel operations etc.
All functional Directors are indirectly related to the areas General Managers. Each area
General Manager is fully responsible for the performance of the area having separate project.
Officer for each project is supposed to achieve the projected target fixed by the company as a
whole. Each project has a colliery manager to individually supervise all types of activities
like transport, production sales realization.
The functional Directors has separate departmental heads namely G.M. sales and marketing,
quality control, finance personnel administration. All have separate work or duties but are
indirectly related to each other.

29

BOARD OF DIRECTORS

Mr. R.K. Saha


(CMD)

Chairman-cum-managing Director

DIRECTORS
Mr. T.K.NAG

Directors (Tech/Oprn.)

Mr. T.K. Chand

Directors (personnel)

Company Secretary
Shri C.V.N. Gangaram

Statutory Auditors
Anand Rungta & Co.
Chartered Accountants

30

ORGANIZATION CHART OF C.C.L.


CMD

DIRECTOR
FINANCE

DIRECTOR
PERSONNEL

DIRECTOR
TECHNICAL
OPERATION

DIRECTOR
TECH. (PROJECT
& PLAN)
Executive Director
VIGILANCE

SECRETARY
(TO CMD)

GM
(FINANCE)
GM
(SYSTEM)
CHIEF OF
INTERNAL
AUDIT

1. CMS

GM OPERATION

2. HOD (L)

GM (Q.C)

3. GM (M/S)

GM (TRANS.)

4. GM HRD

GM (SAFETY)

5. GM (P& IR)

GM (E & M)

6. GM (ADMIN.)

GM (EQUIP. &
HEMM)

7. GM (W & CD)
8. GM (EE)

GM (PROD.)

GM (SALES &
MARKETING)
GM (GEO.
SURVEY)
GM (REVENUE)
GM (MT.MGT)
GM (CIVIL)
GM (CONST.)

9. DY. GM (TA)
10. CHIEF OF
SECURITY

COMPANY
SECRETARIAT

GM (S&IV)
31

GM (CHP)

AREA
(GM)

AVERAGE MANPOWER FOR LAST 5 YEARS AND AS ON 01.05.09

Year ending
31st March

2004-05

2005-06

2006-07

2007-08

2008-09

01.05.09

Average
Manpower

68871

64200

61610

58808

56553

56383

32

COAL STOCK AT CURRENT POSITION

The stock of raw coal as on 31/7/2007 stood at 11.37 million tones.


From which
58% is NON-COKING COAL
42% is COAKING COAL

33

PRODUCTION

The table below shows the production and productivity figures achieved by C.C.L during the
year 2006-2007 as compared to the targets for the year and actual of 2005-2006.
Particulars

2006-2007

2007-2008

Target

Actual Target

2008-2009
Actual

Target

Actual

42.31
1.83
44.14

46.75
2.25
49.00

41.68
1.56
43.24

Production
From OC (MT)
From UG (MT)
TOTAL (MT)

39.970
2.630
42.000

39.364
1.955
41.895

42
2
44

(OC- Open Cast Mining, UG- Under Ground mining, MT- Million Tones)
Graphical presentation of comparison of last five years production and productivity in
C.C.L.

YEARS
(y-axis shows production in million tones and X-axis shows years)
UG-UNDERGROUND COAL MINING PRODUCTION
OC-OPEN CAST COAL MINING PRODUCTION

34

INTRODUCTION

Websters dictionary defines a profession as a calling, vocation or employment requiring


specialized knowledge and often long and intensive academic preparation. To qualify as a
profession, at least six characteristics must be present.

A common body of knowledge

Agreed to performance standards

A representative professional organization

An external perception as a profession

A code of ethics

Agreed certification procedure

Although human resource has recently gained recognition as a profession compared to more
established professions. The management of companys people (human resource) has been a
recognized, time-honoured function of every organization.
Human resource management incorporates a number of interrelated job functions and work
processes, whose primary goal is to acquire and retain qualified, valued employees as a
source of competitive advantage for an organization. Typical HR functions include:

HUMAN RESOURCE PLANNING


Anticipating and making provisions for the movement of people into, within and out of
organization.
Staffing
Locating potential applicants and encouraging them to apply for existing or anticipated job
openings (recruitment) and choosing individuals who have relevant qualifications to fill
existing or projected job openings (recruitment) and choosing individuals who have relevant
qualifications to fill existing or projected job openings (selection).These tasks are often
referenced together under a function called staffing.
35

Job design
Improving jobs through technological and human consideration in order to enhance
organization efficiency and employee satisfaction.

Learning, developing and training


Designing and delivering programs using a variety of methods to develop an employees
knowledge, skills and abilities to work at a satisfactory level of performance on the job
(training), and broaden an individuals skills for future responsibilities (development).

Performance Management
Designing and developing programs and tools which help managers and employees establish
performance standards, identify ways to improve performance asses and document work
performance.

Compensation and benefits


Establishing policies and developing programs that fairly compensate employees for work
performance and meet the strategic objectives of the organization. Direct compensation
includes wages, salaries, incentives, bonuses and commissions. Indirect compensation
includes the benefit provided by employers to improve employees quality of life. Example of
some employee include compensation insurance contributions, health care, paid vacation,
sick level programs, Canada compensation plan, Employment insurance and Workers
compensation. Payroll is also a key responsibility included in the total compensation
function.

Employee and Labour Relation


Designing and developing HR policies and practices that strive to maintain harmonious
working relationships between departments, employees and managers. Specific functions
36

include employee communications and managing organization change, absenteeism, sexual


harassment, employment equity, and diversity. When employees are unionized, the process
(labour relations) includes developing maintaining effective working relationships with
representative unions, participating in collective bargaining, providing advice and guidance
on grievance procedures and policy interpretation and managing workforce reductions.

Health and Safety


Designing and developing policies, practices and procedures that provide a hazard- free work
place and comply with all applicable government statutes and regulations. Additional
requirements include informing employees about health and safety, enforcing safety rules,
and keeping comprehensive records.

Human Resource Information Management


Designing and maintaining a computerized system that provides current and accurate data for
the purpose of control and decision making. In addition to storing and retrieving HR
information, data is used to produce reports, forecast HR needs, establish strategic, plans
careers and promotions, and evaluate HR policies and practices.
But in todays intensely competitive and global marketplace, a growing number of
organizations human resources are now viewed as a source of competitive advantage. There
is a greater recognization that distinctive competencies are obtained through highly
developed employee skills, distinctive organizational cultures, management processes and
systems. This is contrast to traditional emphasis on transferable resources such as equipment.
Increasingly it is being recognized that competitive advantage can be obtained with a high
quality workforce that enables organization to compete on the basis of market responsiveness,
product and service quality, differentiated products and technological innovation.
So, the new HR role is to be viewed from the strategic perspective wherein HR plays an
important and vital role whilst designing and delivering the HR strategy for the organization.
The approach of HR planning activity is no more in isolation but very much aligned to the
strategy of the organization as a whole delivering a strategic impact, the HR strategy needs to
be in sync with the business objectives and the system and processes incorporated must also
support demonstrating the required results. Some of the unsuccessful models/strategy used by
37

the corporations are generalist strategy, personnel strategy, e-HR strategy, performance
culture etc. The strategies or the models cited do have their own advantage and disadvantages
.Some of the evaluation parameters worthwhile considering while planning the suitable
strategy: Priority and focus, likely impact, size, structure and organization appropriateness,
benefits and risks associated, budget and time constraints, technology usage etc. More than
the new strategic role adopted by the HR fraternity; the contribution of the function has also
seen a radical change in the recent past. The performance assessment methodology and
measures incorporated, introducing HR scorecard and usage of ROI concept in measuring the
performance of this function in terms of financial outputs, have allowed the HR function to
crown the status of Strategic Business Units akin to other functions. As the industry rolls into
the stream of knowledge management concepts defining, sharing and impacting of industry
and role specific vital information, the HR professionals are dealing with knowledge and
empowered associates now a days. This necessitates the HR professional to be competent on
the personal and professional grounds requiring to have sound business knowledge,
proactiveness and innovative. Managing change and diversity have become preponderant in
the HR agenda. The cross- cultural and team becoming more obvious and common, HR often
takes a consulting role within the organization enabling to build an employee oriented culture
and climate. Combating with the acute attrition prevailing admits the knowledge industry, the
HR professional are enforced to think out of the box to taste the success of their retention
strategies. With the onus of creating an employee barding-enabling the corporation to attract
the potential talents, the HR function bolsters the value proposition of the corporation.

Review of literature

Effectiveness of performance Appraisal system it is argued is a function of applying


the right system in right context.
By Klein; The Art o Appraisal
38

Performance appraisal system are home work that provides the information you
need in order to make appropriate administrative recommendations, hold meaningful
feedback discussions with staff members, and determined were performance
improvement is required
By Marion E. Haynes; Managing Performance

The effectiveness of an Appraisal System is determined by the quality of


communication between the manager and staff member, not by multiple raters,
complex scoring methods, or the form used.
By John D. Drake; Performance Appraisal: One More Time

Performance appraisal can actually be counter-productive for employees who are in


the greatest need of training and further development
By Victor Buzzottan; Improving your Performance Appraisal

One of the measure reason Performance management and Performance Appraisal fail
is that too much time is spent on Appraising performance using vague criteria, and not
enough time and effort put into helping employee understand what his job is about,
and the goals and objectives he/she is expected to achieve to be successful. Learn to
do goals setting painlessly.
By Robert Bacal; Learn to plan Performance and set employee goals

Maximizing and measuring our own performance and that of the people who work for
us is a

basic tenant of the work environment. Always use of simple tool and

approach that can be beneficial in achievement performance plan.


By Zack Mansdorf; Performance Management; Identifying work goals

Most managers and supervisors today are attempting to quantify their departmental
objective and pass them on their employees through performance standards. Despite
the simplicity of this management- by objective approach, deadlines are missed,
quality is relatively poor and productive is low. The reasons for this may not be the
39

fault of the employees carrying out the work. The cause is most often associated with
the immediate supervisors lack of attention to the realities surrounding objectives and
performance standards require a careful analysis of all the relevant issues.
By Gregory Isaac; Plan for performance
Organizations striving to develop an open and participative approach have begun to
give employees the chance to say what they think of their managers. Such appraisals
can only work in a culture where mangers are willing to listen and learn and effect
any necessary changes as a result.
By Madhukar Shukla; Upward Appraisal and Organizational culture
At one stage performance appraisal relied mainly on personality characteristics. Sub
ordinates were being appraised by their superior on the extent to which they exhibited
characteristic like, tact, willingness, enthusiasm, and maturity. Mangers were being
put into position of psychologists and required to make subjective ratings without any
point of reference expect their own opinion
By Bob Nelson; Performance Assessment

Performance appraisal is a part is a part of overall performance management system


of an organization. Through the appraisal process, gap between an individuals agreed
performance standard his actual performance is assessed and appropriate strategies are
drawn for subsequent performance cycle. This is a useful performance enhancement
exercise. In many Organizations, PMS is linked with other systems like salary &
Benefits, Training &Development and Succession Planning.
By H.K.Shukla; Straties Human Resource Management

Bi-directional performance recognizes that for performance to improve, both manager


and employee must receive feedback on how well they are fulfilling their obligations
to their organizations and to each other.
By Robert bacal; when Boss evaluates you

Most advocates of total quality believe that total quality management (TQM) and
performance appraisal is incompatible. For them company managers can choose to
promote either of these two approaches but not both. Since fundamental TQM
requirements contradict the basic elements of performance appraisal, it would be
40

impossible to combine them. Thus, companies may have to re-examine their


approaches to corporate leadership.
By, Peters Scholtes; TQM& Performance Appraisal

In recent year there has been a shift away from the traditional employee rating system,
which places emphasis on the use of such rating for administrative actions to service
ratings, which serves as a basis for counseling in employee regarding the
improvement of their performance of the job. For example, many personnel authority
believe that disciplinary matters should be created in terms of specific causes rather
than in terms of general service-ratings programme the new look in employee ratings
emphasize the use of performance evaluation and opportunity for the supervisor to
give the employee a better understanding of the job and what is expected of the
employee the new look like wise provide the opportunity for the employee to give
input into the scope and sequences of the task performed.
By, Krishna Raghvan; the Mantra of employee rating system

INTRODUCTION OF P ERFORMANCE APPRAISAL

The history of performance appraisal is quite brief. Its root in the 20 th century can be traced to
Taylors pioneering Time and Motion studies. But this is not very helpful, for the same may
be said about almost everything in the field of modern human resource management.
As a distinct and formal management procedure used in the evaluation of work performance,
appraisal really dates from the of the second world war-not more than 60 years ago.
Yet in a broader sense, the practice of appraisal is a very ancient art. In the scale of things
historical, it might well lay claim to being the worlds second oldest professional!

41

There is, says Dulewicz (1989), a basic human tendency to make judgment about those
one is working with, as well as about oneself.Appraisal, it seems, is both inevitable and
universal. In the absence of a carefully structured of appraisal, people will tend to judge the
work performance of others, including subordinates, naturally and informally, arbitrarily.
The human inclination to judge can create serious motivational, ethical and legal problems in
the place. Without a structured appraisal system, there is little chance of ensuring that the
judgment made will be lawful, fair, defensible and accurate.
Performance appraisal systems began as simple methods of income justification. This
is,appraisal was used to decide whether or not the salary or wage of an individual employee
was justified.
The process was firmly linked to material outcomes. If an employees performance was found
to be less than ideal, a cut in pay would follow. On the other hand, if their performance was
better than the supervisor expected, a pay rise was in order.
Little consideration, if any, was given to the developmental possibilities of appraisal. It was
felt that a cut in pay, or a rise, should provide the only required impetus for an employee to
either improve or continue perform well.
Sometimes this basic system succeeded in getting the results that were intended; but more
often than not, it failed.
For example, early motivational researchers were aware that different people with roughly
equal work abilities could be paid the same amount of money and yet have quite different
levels of motivation and performance.
These observations were confirmed in empirical studies. Pay rates were important, yes; but
they were not the only element had an impact on employee performance. It was found that
other issue, such as morale and self esteem, could also have a major influence
As a result, the traditional emphasis on reward outcomes was progressively rejected. In the
1950s in the United States, potential usefulness of appraisal as tool for motivation and
development was gradually recognized.
The general model of performance appraisal, as it is known today, began from that time.
In todays competitive world, various organization and companies are struggling for
maximum consumer satisfaction and economic benefit. The degree of success that all
42

employees have in reaching their desired goals is important in determining organization


effectiveness.
The assessment of success achieved by employee becomes a critical part of HRM. This leads
us to the need of performance appraisal. In simple terms, performance appraisal may be
understood as the assessment of an individuals performance in a systematic way.
A formal definition of performance appraisal is:
It is the systematic evolution of the individual with respect to his or her performance
on the job and his or her potential for development.
Performance Appraisal can be understood as:
A formal, structured system of measuring and evaluating an employees job related
behaviors and outcomes to discover how and why the employee is presently performing on the
job and how the employee can perform more effectively in the future so that the employee
,organization, and society all benefit.

OBJECTIVES OF PERFORMANCE APPRAISAL

Data relating to performance assessment of employees are recorded, stored, and use for
several purposes. The main purposes of employees assessment are:
1. To effect promotion based on competence and performance.
2. To confirm the services of probationary employees upon their completing the
probationary period satisfactorily.
3. To assess the training and development needs of employees.
4. To decide upon a pay raise where (as in the unorganized sector) regular pay scale
has been fixed.
43

5. To let the employees know where they stand in so far as their performance is
concerned and to assist them with constructive criticism and guidance for the
purpose of their development.
6. To improve communication. Performance Appraisal provides a format for
dialogue between the superior and the subordinate, and improves understanding of
personal goals and concerns. This can also have the effect of increasing the trust
between the rater and the ratee.
7. Finally, Performance Appraisal can be used to determined whether HR
programmes such as selection, training ,and transfers have been effective or not.
Broadly, performance Appraisal serves four objectives
I.
II.

Developmental uses,
Administrative uses/decision

III.

Organizational maintenance/ objectives and

IV.

Documentation purposes.

MULTIPLE PURPOSE OF PERFORMANCE ASSESSMENT

General Application

Specific Purpose

Developmental uses

Identification of individual needs


Performance feedback
Determining transfer and job
Assignments
Identification of individual

44

Strengths and developmental


needs

Administrative uses/ Decisions

Salary
Promotion
Retention of termination
Recognition of individual
Performance
Lay-offs
Identification of poor Performers

Organizational maintenance/ objectives

HR Planning
Determining organization
Training needs
Evaluation of organizational
goal Achievement
Information of goal identification
Evaulation of HR systems
Reinforcement of organizational
Development needs.

Documentation

Criteria for validation research


Documentation for HR decisions
Helping to meet legal
requirements

45

THE APPRAISAL PROCESS

The process of appraisal begins with the establishment of performance standards. These
performance standards should be clear and objective enough to be understood and measured.
The next step is to communicate these standards to the employees. To make the
communication effective, feedback is necessary from the subordinate to the manager.
The third steps in the appraisal process are the measurement of performance. This step is
concerned with the decision on appraisal method and implementation of the system selected.
The fourth steps in the comparison of actual performance with standards.
At the next step, the results of appraisal are discussed periodically with the employees, where
strength, weakness and difficulties are discussed so that performance can be improved.
The final step is the initiation of corrective action whenever necessary.
46

METHODS OF APPRAISAL

Numerous methods have been devised to measure the quantity and quality of employees job
performance. Broadly all the approaches to appraisal can be classified into:
1 Past oriented methods,
2 Future oriented methods.
Each group has several techniques for appraising employees performance

47

METHODS

PAST-ORIENTED

FUTURE ORIENTED

Rating scales

Management by objective

Checklist
Forced choice method
Forced distribution method

360-Degree appraisal

Critical incident methods


Behaviorally anchored scales
Field review methods
Performance tests and observations

Psychological appraisal
48

Annual confidential reports


Essay methods
Cost accounting approach
Comparative evaluation approach

Assessment centre

1. PAST ORIENTED METHODS

Ratings scales
This is the simplest and most popular technique for appraising employee performance. The
typical rating scale system consists of several numerical scales, each representing a jobrelated performance criterion such as dependability, initiative, output, attendance, attitude,
co-operation, and the like. Each scales ranges from excellent to poor. The rater checks the
appropriate performance level on each criterion, then computes the employees total
numerical scores.

Checklist
Under this method, a checklist of statement on the traits of employee and his or her job is
prepared in two columns-viz,a Yes column and a No column. All that the rater (immediate
superior) should do is tick the Yes column if the answer to the statement is positive and in
column Noif the answer is negative. After ticking off against each item, the rater forwards
the list to the HR department where the actual assessment of the employee takes place. The
HR department assigns certain points to each Yes ticked. Depending on the number of Yes
the total score is arrived. When points are allotted to the checklist, the technique becomes a
weighted checklist.

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FORCED CHOICE METHODS


In this the rater is given a series of statements about an employee. These statements are
arranged in blocks of two or more, and the rater indicates which statements are most or least
descriptive of the employee. This method is known as the forced choice methods because the
rater is forced to select statements which are readymade.

FORCED DISTRIBUTION METHOD


One of the errors in rating is leniency-clustering a large number of employee around a high
point on a rating scale. The forced distribution method seeks to overcome the problem by
compelling the rater to distribute the rates on all points on the rating scale. The method
operates under an assumption that the employee performance level conforms to a normal
statistical distribution. Generally it is assumed that employee performance level conforms to
a bell-shaped curve

CRITICAL INCIDENTS METHOD


The critical incidents methods of employee assessment have generated a lot of interest these
days. The approach focuses on certain critical behaviors of an employee that make all the
difference between effective and non-effective performance of a job. Such incidents are
recorded by the superiors as and when they occur.

BEHAVIORALLY ANCHORED RATING SCALES


Behaviorally anchored scale, sometimes called behavioral expectation scales, are rating
scales whose scale points are determined by statements of effective and ineffective behaviors.
They are said to be behaviorally anchored in that the scales represent a range of descriptive
statements of behavior varying from the least to the most effective. A rater must indicate
which behavior on each scale best describes an employees performance. Behaviorally
anchored rating scales (BARS) have the following features:
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1. Areas of performance to be evaluated are identified and defined by the people who will use
the scales.
2. The scales are anchored by descriptions of actual job behaviors that, supervisors agree,
represent specific level of performance. The result is a set of rating scales in which both
dimensions and anchors are precisely defined.
3. All dimensions of performance to be evaluated are based on observable behaviors and are
relevant to the job being evaluated since BARS are tailor made for the job.
4. Since the raters who will actually use the scales are actively involved in the development
process, they are more likely to be committed to the final product.
BARS were developed to provide results which subordinates could use to improve
performance. Supervisors would feel comfortable to give feedback to the ratees.

FIELD REVIEW METHOD


This is an appraisal by someone outside the assesses own department, usually someone from
the corporate office or the HR department. The outsider reviews employee records and holds
interviews with the rate and his or her superior. The method is used for making promotional
decision at the managerial level.

PERFORMANCE TESTS AND OBSERVATIONS


With a limited number of jobs, employee assessment may be based upon a test of knowledge
or skills. The test may be of the paper-and-pencil variety or an actual demonstration of skills.
The test must be reliable and validated to be useful. Even then, performance tests are apt to
measure potential more than actual performance.

CONFIDNTIAL RECORDS
Confidential records are maintained mostly in government departments, though its application
in

the industry is not ruled out. ITI, for example had followed method for a long time. Called

the Annual Confidential Report (ACR),


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The approach had 14item1. Attendance


2. Self-expression (written or oral)
3. Ability to work with others
4. Leadership
5. Initiative
6. Technical ability(job knowledge)
7. Ability to understand new material
8. Ability to reason
9.

Originality and resourcefulness,

10. Areas of work that suits the person best,


11. Judgment
12. Integrity
13. Responsibility, and
14. Defect-indebtedness, memo served, etc.

twelve of these were filled on a four point grade scale (Excellent, Good, Fair, Poor).For
integrity, there were special instructions from the management. Justification was separately
given (outstanding, Very good, Average, Poor), again with justification for rating as
outstanding or poor. Recommendations for promotion were also given. The ACR contained
recommendations and signature of the rater, the head of the department and the CMD.
The system was highly secretive and confidential. Feedback to the assesses was given only in
case of an adverse entry. The ACR was highly subjective. Ratings were easily manipulated
52

because the evolution was linked to promotion. Even ITI has discontinued this system for
these reasons

Essay Method

In the essay method, the rater must describe the employee within a number of broad
categories, such as
1. The raters overall impression of the employees performance,
2. The promotability of the employee,
3. The jobs that the employee is now able to or qualified to performed,
4. The strengths and weakness of the employee, and
5. The training and development assistance required by the employee.
The strength of the essay method depends on the writing skills and analytical ability of the
rater. Although this method may be used independently, it is most frequently found in
combination with others. It is extremely useful in filing information gaps about the employee.

COST ACCOUNTING METHOD


This method evaluates performance from the monetary returns the employee yields to his or
her organization. A relationship is established between the cost included in keeping the
employee and the benefit the organization derives from him or her. Performance of the
employee is then evaluated based on the established relationship between the cost and the
benefit.

COMPARATIVE EVALUATION APPROACHES


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These are a collection of different methods that compare one workers performance with that
the of his/her co-workers. As these appraisals can results in a ranking from best to worst, they
are useful in deciding merit-pay increases, promotions and organizations rewards. The usual
comparative forms used in this kind of evaluation are the ranking method and the paired
comparison method.

RANKING METHOD
In this, the superior ranks his or her subordinates in their merit, starting from the best to the
worst. All that the HR department knows is that A is better than B. The how and why are
not questioned, nor answered. No attempts are made to factionalize what is being appraised
into component elements. This method is subjected to the halo and regency effects, although
rankings by two or more raters can be averaged to help reduce biases.

PAIRED-COMPARISON METHODS
Under these methods, the appraiser compares each with every other employee, one at a time.
For example, there are five employees named A, B, C, D, and E. The performance of A is first
compared with the performance of B and a decision is made about whose performance is
better. Then A is compared with C, D and E in that order.
The same procedure is repeated for other employees. The number of comparisons may be
calculated with the help of this formula:
N (N-1)*1/2 where N stands for the number of employee to be compared.

After the

completion of comparison, the results can be tabulated, and a rank is created from the number
of times each persons is considered to be superior.

2. FUTURE-ORIENTED APPRAISALS
It is enough if only the past performance is assessed. How an employee can perform in the
days to come is equally important. This can be assessed by focusing on employee potential or
setting future performance goals. The commonly used future-oriented techniques are:

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MANAGEMENT BY OBJECTIVES (MBO)


It was Peter F.Drucker who first gave the concept of MBO to the world back in 1954 when
his The Practice of Management was first published. The MBO concept, as was conceived by
Drucker, reflects a management philosophy which values and utilizes employee contribution.
How MBO works can be describes in four steps:
The first step is to establish the goals each subordinates is to attain. In some organization,
superiors and subordinates work together to establish goals. In others, superiors established
goal for subordinates. The goals typically refer to the describes outcome to be achieved.
These goals can be then by used to evaluate employee performance.
The second step involves setting the performance standard for the subordinates in a
previously arranged time period. As subordinates perform, they know fairly well what there is
to do, what has been done, and what remains to be done.
In the third step, the actual level of goal attainment is compared with the goal agreed upon.
The evaluator explores reasons for the goals that were not met and for the goal that were
exceeded. This step helps determine possible training needs. It also alerts the superior to
conditions in the organization that may affect a subordinate but over which the subordinates
has no control.
The final step involves establishing new goals and, possibly, new strategies for goals not
previously attained. At this point, subordinates and superior involvement in goal setting may
change. Subordinates who successfully reach the established goals may be allowed to
participate more in the goal setting process the next time. The process is then repeated.

MBO has been criticized also. One comment made against the approach is that it is not
applicable to all jobs in all organizations. Jobs with little or no flexibility, such as assemblyline work, are not compatible with MBO. An assembly line worker usually has so little job
55

flexibility that the performance standards and objectives are already determined. The MBO
process seems to be most useful with managerial personnel and employee who have a fairly
wide range of flexibility and self control in their jobs. Besides when the results of an MBO
system are to be used to all to allocate organizational rewards, employees may be less to less
likely to establish challenging goals. They are confident that they can accomplish. Further,
the allocation of merit pay on a semi-annual or annual basis may encourage the setting up of
goals with short tune horizons to the disadvantage of important long term goals.

PSYCHOLOGICAL APPRAISALS
Large organizations employ full-time industrial psychologist. When psychologists are used
for evaluations, they assess an individuals future potential and not past performance. The
appraisals normally consist of in-depth interviews, psychological test, discussion with
supervisors and a review of other evaluations. The psychologist then writes an evaluation of
the employees intellectual, emotional motivations and other related characteristics that
suggest individual potential and may predict future performance. The evolution by the
psychologist mat be for a specific job opening for which the persons for which the persons is
being considered, or it may be a global assessment of his or her future potentials. From these
evaluations, placement and development decisions may be made to shape the persons career

ASSESSMENT CENTERS
An assessment centre is a central location where managers may come together to have their
participation in job related exercises evaluated by trained observers. The principle idea is to
evaluate managers over a period of time, say one to three days, by observing (and later

evaluating) their behaviors across a series of select exercises or work samples. Assesses are
requested to participate in in-basket exercises, work groups (without leaders),computer

simulations, role playing, and other similar activities which require the same attributes for
successful performance, as in the actual job. After recording their observations of rate
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behaviors, the raters meet for the discussion of observations. Self-appraisal and peer
evaluation are thrown in for final rating.
The characteristics assessed in a typical assessment centre include assertiveness, persuasive
ability, communicating ability, planning & organization ability, self confidence, and
rsistance to stress, energy level, decision-making, sensitivity to the feelings of others,
administrative ability, creativity and mental alertness.
First developed in the US and the UK in 1943, the assessment centre is gaining popularity in
our country. Crompton Greaves, Eicher, HLL, Modi Xerox are using the technique with
results being highly positive.
The problem with the assessment centre is their cost. Not only are the assesses away from
their jobs while the company pays for their travel and loading, but the evaluators are often
company managers who are assigned to the assessment centre for short durations. These
managers are often supplemented by psychologists and HR specialists who run the center and
also make evaluations. Hence this approach is cost-effective only in large organizations.
Assessment-center staffs are often influenced by subjective elements, such as personality of
the candidates. Raters tend to evaluate the quality of the individuals social skill rather than
the quality of the decisions he/she makes. Assessment center ratings seem to be strongly
influenced by the participants interpersonal skills.
The approach also involves real hazards. One of the most obvious is the examination-taking
syndrome. Solid performers in day to day operations feel suffocated in the simulated
environment. Another drawback is its potential adverse effect on those not selected to
participate in the exercise.
Employee who receives a poor report from the center may react in negative ways. A rejected
employee would return to his or her former job, satisfied that he or she would not be
promoted to a job he/she couldnt handle. However, a good performer at one level may leave
the organization

in order to remove the bad assessment report from his or her work record. Thus, a poor report
can demoralize an employee who was once an asset.

57

But a well-conducted assessment center can and does achieve better forecast of fortune
performance and progress than other methods of appraisal. Also, reability, content validity,
and predictive validity are said to be high in the assessment centers.
The test also makes sure that the wrong people are not hired or promoted. Finally, the
assessment-center test clearly defines the criteria for selection and promotion.

360-Degree Feedback
Where multiple raters are involved in evaluating performance, the technique is called 360degree appraisal. The 360-degree technique is understood as systematic collection of
performance data on an individual or group, derived from a number of stakeholders-the stake
being the immediate supervisors, team members, customers, peers and self. If fact, any one
who has useful information on how an employee does the job may be one of the appraisers.
The 360-degree appraisal provides a broader perspective about an employees performance.
In addition, the technique facilities greater self development of the employee. For ones
development, multi-source feedback is highly useful. It enables an employee to compare his
or her perception about self with perceptions of others. Besides, the360-degree appraisal
provides formalized communication links between an employee and his or her customer. It
makes the employee feel much more accountable to his or her internal or external customers.
The techniques are particularly helpful in assessing softs skills possessed by employees. By
design, the 360 degree appraisal is effective in identifying and measuring interpersonal skills,
customers satisfaction, and team-building skills.
However, there are drawbacks associated with the 360-degree feedback. Receiving feedback
on performance from multiple sources can be intimidating. It is essential that the organization
create a non-threatening environment by emphasizing the positive impact of the technique on
an

employees performance & development. Further, firms that use the technique take a long
time on selecting and the rater, designing questionnaires and analyzing the data. In addition,
multiple raters are less adept at providing a balanced and objective feedback than the
supervisors who are sought to be replaced. Raters can have enormous problems separating
honest observation from personal from personal differences and biases.
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Pitfalls notwithstanding, more and more number of firms are using the 360-degree appraisal
technique to assess the performance of their employees.

APPRAISALS ERRORS
The ideal approach to performance appraisal is that in which the evaluator is free from
personal biases and prejudices. But there are many significant factors which deter or
objective of the evaluation.

1. Leniency Error: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 exhibit
.This is the tendency of awarding higher marks than what is really due. This depends on
variation of value system or standard between different raters.

1. Halo Effect:sometimes an employee can create a certain impression on the rater because of some
incidents or behavior. This could be either positive or negative. For example, an
employee might have been selected as a champion in athletics meet. This good
impression has a tendency to influence the rater to provide higher marks on all factors
being evaluated. Similarly a person who is shabbily dressed for an interview give a
bad impression on the rater which carry negative feedback, while he is being
appraised, giving a chance of putting less marks on all points in the appraisal card.

2. Similarity Error:This is the situation in which apprisee possesses a certain similarity or identity with
the rater himself. It could be identity in ideology, personality, cast, creed or language
etc.

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3. Central Tendency:Appraisers have a tendency to play safe. This results in ratings all employees above
average

or good. Normally in all organizations there are about 10 percent

excellent and 10 percent very poor. One cannot ignore this aspect.

4. Reward Effect:Some time rating can effect promotion or some such reward to which the employee is
a candidate. The tendency of ratter is to award some extra marks in such occasions.
5. Recent Incident Effects:Normally the annual appraisals are made some time in the month of December every
year. This is the error in which the rater is biased because of certain incidents which
occurred during a period just prior to the date of appraisal. If such an incident has
created a good impression on the rater, it leads to award of higher marks than
deserved and vice-versa.

6. Raters Error:If the rater is only one , all the above errors will have little effect in rankings since
errors are equally effected to all the employees even though individual marks vary
from realistic analysis . The problem becomes acute when raters are many. We have
different type of raters, very strict or very relaxed. The strict raters put lesser marks
whereas the relaxed raters give very high marks. Thus, the employees who are
marked/appraised by strict rater suffer because the annual confidential reports
contains the rater marks of appraisal, which form the basis of further promotion or
lucrative assignment or choice transfer etc. The personality of rater is another factor
for such errors. For example the marks allotted will be generally on the lower side by
a rater who believes in Theory of X compared to another rater who believes in
Theory of Y.

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METHODS OF IMPROVING PERFORMANCE APPRAISAL


1. Use Behaviour Based Scales:The BARS should be used instead of traits or personality attributes for appraisal.
2. Combine individual and group ranking:These are the methods of classifying employees in various grades and indicate position of
each employee in their respective in their grades. This will also revel the nature (strict or
relaxed)raters and might help to correct them.
3. Continuous feedback:If the superior and worker interact often and confront problems, solution and performance,
annual appraisal will not be a surprise to the subordinate. A sort of partnership can develop
where supervisors continuously appraises him the areas requiring improvement.
4. Multiple Raters:Uses of multiple raters minimize raters error discussed above. This can also assist to employ
suitably qualified and competent rater to appraise a person in specialized areas. This latter
method is also called Selective Rating Method.
5. Training Appraise/Raters:Suitable training assist a lot to bring in uniformity in criteria and measurement of
performance.
6. Peer Evaluation:Here peers are asked to evaluate their colleagues and suitable weight age is assigned.
7.Rewards to Accurate Appraise/Raters:
This will provide the following
1. Improve motivation to become objective in appraisal.
2. Improve value of appraisal.
Very often raters consider, rating is a routine affair which has no value on career
prospects/promotion etc.of employees.

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OBJECTIVE OF THE STUDY

Main objective for the study of Performance Appraisal in CCL are as follows:1. To study in detail the actual working of a modern Performance Appraisal System.
2. To know the method of Appraisal in CCL, and its effectiveness on the workers and to
find out how much the system is effective in reaching its target.
3. To interact at different level of the organization to formulate an overall opinion
regarding the Performance Appraisal System.
4. To know the level of satisfaction, then reaction against the system, scope of
introducing new and most modern technique of Appraisal.

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METHODOLOGY

Performance appraisal practice in any sector becomes effective only when the outcome of the
deliverable meets business requirements. This gets reflected in the matching of human
business requirements that embark upon after having effective and robust appraisal process
which focuses on competence need identification. With this in mind a survey was conducted
by the researcher to see whether the objective laid down by the organization regarding
performance appraisal was obtained or not
The questionnaires were distributed among the executive and non-executive staff and were to
be filled by them. The researcher met some of the employee personally and interviewed them.
The questionnaire was collected later on further analysis.

METHODS OF DATA COLLECTION

The task of data collection begins after a research problem has been defined and research
design/ plan chalked out. While deciding about the method of data collection to be used for
the study, the researcher should keep in mind two types viz; primary and secondary.

METHODS OF PRIMARY DATA COLLECTION

1. Questionnaire
2. personal Interview

1. Questionnaire:

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Questionnaires were distributed among the eligible participants and were to be filled by
them .The researcher explained the questions to the participants who were unable to get the
implication of the given question and helped in filling up the questionnaire. The
questionnaires were collected later for further analysis.

2. Personal Interview: While conducting the survey the researcher went to every department
and interviewed non-executive staffs. For getting a full picture of performance appraisal
system prevailing at CCL and its pitfalls, it was necessary or needs of the time to conduct an
interview of employees at different levels.

Secondary data collection:Researcher used data that were published in these forms:1. Technical and Trade journals
2. Books, Magazines and News papers
3. Reports and Publications of various associations connected with business and industry.

SIZE OF SAMPLE

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The sample of study for employees 10% of the universe i.e non-executive (which was1300)
of different department which were randomly selected by the researcher.

UNIVERSE

The universe for researcher for constituted of all non executives working in various
department at C.C.L Darbhanga House, Ranchi (Head Quarter).

CONSTRAINTS IN DATA COLLECTION

While doing the project the researcher faced many difficulties as a result of which the number
of responses received were less than expected number.
1. Some participants were reluctant to fill up the questionnaire with the excuse that they were
not allowed to share such information related to their Performance Appraisal.
2. Some of the staffs were not at all willing to corporate due to which the researcher had
taken best effort to persuade then to come on but result was not satisfactorily.

PERFORMANCE APPRAISAL SYSTEM AT A GLANCE


(Adopted for the year 1986-87 on words)

65

Performance appraisal system for EXECUTIVE level employees in CCL is known as


Executive Evolution Report (EER).
The main objective of the (Executive Evaluation Report)is to evaluate and identify potential
and development needs for the Executives growth towards achievement of corporate
objective.
Performance appraisal of Executives employees in CCL is carried out through Self-appraisal
and Rating method.
The promotion criteria in CCL are divided into two categories depends upon the level of the
posta) The officer of E-5 rank and below
The promotion is done on the basis of seniority cum merit basis i.e. seniority is given higher
weightage than merit.
b) The officer of E-6 rank and above The promotion is done on the basis of merit cum seniority i.e. merit is given higher weightage
than seniority.
Rating of the Executive employees is done by the appraisees reporting officer and then it is
reviewed by the two reviewing officer one by one and at lastly rating is done by the
Functional Head of the organization.
Appraisal Year: 12 months (1st April to 31st March) Appropriate PAR from will be made
available to the executives (appraise) by the personnel department in the first week of April
every year.
The performance appraisal system followed at CCL is objective and step by step method.
Apprise: executive working under a superior.
Appraise1st: Under whom the Appraise works
.

2nd: Executive who functionally or directly oversees the activities of the Appraise.
3rd: Any other who functionally or directly oversees the activities of the Appraise.

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Reviewer: A very senior officer (Functional Head of the organization) who gives final
grading on the PAR
The whole process of performance evaluation involves the following steps.

FIXING OF TAAD

SELF APPRAISAL BY
THE EMPLOYEE

ASSESSMENT OF
RATING THE
EMPLOYEES

REVIEW OF THE
GRADING BY THE 1st
LEVEL REVIEW
OFFICER
REVIEW OF THE
GRADING BY THE 2nd
LEVEL REVIEW OFFICER

FINALIZATION OF THE
GRADING BY THE
FUNCTIONAL HEAD OF
THE ORGANISATION

Grading system (overall)


A: Outstanding
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B: Very Good
C: Good
D: Average
E: Below Average
Grading for personality and potential traits
G: Good
N: Normal
P: Poor
Developments needs: in respect of training specific recommendation about the topic be
mentioned.
The suggestion for job- rotation be indicated by putting ( ) tick mark columns.
Form
A: Grade E5 to E9 all disciplines working at Headquarters area and other offices
B: E5 to E9 posted at collieries /washeries /Workshop/ subareas and executives in charge of
define area of activities
C: For executives of grade E1 to E4 of all disciplines
D: For directly recruited officers for competitions of probation period, after 12 months
E: For JET / Management Trainee/ LWO for initial training of 12 months or more.
F: For the promoters for assessment of 12 months performance, for completion of probation
period. Interim performance report (IPR) be used for period prior to promotion or period after
the clearance of probation period, till the beginning or end of the appraisal year.

OBJECTIVES AND RULES


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The essential features of the Performance Appraisal System are:


1: Analysis of performance essentially with a view to determine the input to effort and not
necessarily the output only.
2. To bring into sharper focus results achieved in respect of key areas.
3. Analysis of the potential features of appraises personality, both professional and
management for his development in the organization.
4. To suggest the area of further development in respect of nature of assignment.
5. Suggestions with regard to training on the job and off the job, for further growth and
development.
The proposed performance seeks to provide guideline to the Appraiser to make PAR system
development oriented through sharper analysis of the individual, the

situation & the

organizational demands.
The system also would help locating executives with different potential strength who could
meet the organizational needs of higher production through induction of new technology and
at lower costs. We could call such executives as high flyers who has to be encouraged to
continue to perform even better in the future.
On the basis of feedback received about feasibility or executives performance appraisal
system designed during 1987, further modification and structuring was done named as CIL
Executives Evaluation Report(Task Assignment & Document) came out during 1993-1993
and since then it is operative accordingly.

GUIDELINE FOR EXECUTIVE EVALUTION REPORT (EER)

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The OBJECTIVE of the EXECVTIVE EVALUTION REPORT (EER) is to evaluate


performance and identify potential and development needs for the Executives growth
towards achievement of Corporate Objectives.
2.1) In the circumstances , it is necessary that the target are assessed taking into account the
constraints. As such, the first requirements is the preparation of accepted Task Assignment &
Acceptance Documents(TAAD) by reporting authority ,in the consultation with the appraise,
by the end of the financial year. Four monthly review will be made in regard to the task
performance on the basis of the task Assignment & Acceptance Document in which the task
to be performed during a particular four months period will be indicated by the controlling
officer.
2.2) While preparing the key task for the TAAD, the following parameters (which are
relevant to the appraisee) shall be given under different task areas:
Quality

Industrial Relation

Quantity

Welfare

Development

Asset Management

Cost

etc.

3.) As the planning in terms of the frame for the jobs is necessary for achieving the target, the
Appraise should discuss the 4 program of task with the Appraisee and finalize it. This would
be supporting documents for monitoring the progress for every four months. The Reporting
Officer will discuss the assigned task etc. with the Appraisee before the beginning of every
four months and record in this documents
4.) With the completion of the Assessment year the appraisee will be supplied with the EER
from duly numbered by the Executives Establishment Department directly, by the end of
January, so that format should be available with the appraise latest by 28 th February. Self
Appraisal in the printed format duly filled is must be handed over to the reporting officer by
30th April.

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5.1) the reporting officer will complete his evaluation and send it to the first level reviewer by
15th may.
5.2) If the reviewing officer (both Staff and Line) differs with the assessment of the Reporting
Officer, he should give reasons for final grading with the final comment. The first reviewer
will complete the evaluation and same to the Second level review officer (both Staff and
Line) by 15th June.
5.3)The second level reviewing officer (both Staff and Line)y will evaluate the performance
by 30th June giving reasons, if any, for disagreeing with the first level Review Officer.
5.4) Subsequent to the above, the EER shall be sent to the functional head of the company for
his review, and within 15days thereafter to the Executive Establishment Department for
record, the reporting officer shall not initiate the EER unless the appraisee has worked at least
for a period of 4 (four) months under him in the relevant assessment.
5.5)In case there is a difference of opinion between the first level review officer and the
second level Review Officer, the EER shall be sent to the 3rd Level Review Officer.
6) The following approach has been considered for the overall assessment.
6.1)For officer of the rank of E-6 and below, the performance evaluation with reference to the
task performed as mentioned in TAAD shall carry 60 marks as against 40 marks for the
personality Traits, Leadership and other criteria.
6.2)In the case of officers of E-7 rank and above levels, since Managerial skills, Union
Management, Decision Making, judgment etc. are considered equally important , 50 marks
have been assigned for personal Traits and remaining 50 marks for performance.
6.3) while reviewing the EER, the Reporting Officer shall take into consideration
performance as well as the constraints and arrive at his final Marking/Rating.

7.) It is the intention of the company to identify the High performance with a view to develop
their potential and utilize them in the overall interest of the company. As such, the format
proposed has taken into consideration the grading under four categories as follows:

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Excellent: 85-100

Adequate: 41-59

Commendable: 60-84

Inadequate: 40 and

(Note: it is expected that the First Level Review Officer will discuss with the Appraise and
Reporting Officer in all cases where the grading of the officer is either INADEQUATE or
EXCELLENT. All such cases of the Executives whose ranking has been EXCELLENT or
INADEQUQTE shall also go to the third level reviewing authority.)
8) The grading of ADEQUATE and INADEQUATE shall be communicated to the Executive
immediately after receipt of his report from the Executive Establishment Department.
9. (a)The EER of Executive whose ranking have been INADEQUATE shall be considered by
a committee of Director(Personnel), Director (Tech) and the Functional head to check, if any
moderation is required and to arrive at the action to be taken by the company, for the
development of these Executive.
b) The EER of Executive whose ranking has been Excellent shall considered by a Committee
of Directors (Pers.), Directors (Tech.) and the Functional Head to check, if any moderation is
required and to arrive at such steps that may be necessary for further development of the
executives.
10. Similarly in the case of EERs maintained at the level of CIL Hqrs, the review on similar
line shall be undertaken by a committee consisting of Directors (P&IR), Directors (Tech), and
the functional Head.
11. Personnel Department of coal India Ltd. Will send appropriate instructions with regard to
the details as to initiation of EER and review of EER etc.
Note : (1) In keeping with objective of this EER,as stated in Para 1 above, the assessment by
the reporting officer and the Reviewing officer shall be done for the grooming and betterment
of the executive.
The

entries/observation

are

required

to

be

constructive

,as

the

case

of

improvement/Assistance Areas in section B(v) ,the qualitative ,aspects of section C and in


Training and development Needs in section D.

72

Similarly, it is expected that the executives will approach and handle his/her self assessment
objectively and with a befitting maturity.
2. Review/counseling card is to be prepared for every four month period in duplicate and to
be signed by both Appraise and the Reporting Officer. The duplicate (perforated) copy of
each Review card to be handed over to the Appraisee.
3. Format D TRAINING AND DEVELOPMENT NEEDS to be prepared in triplicate one
to remain with EER and two copies to be sent to the Functional Head at Corporate Head
Office. The functional head after recording his recommendation shall send one copy to GM
(HRD) for arranging training.

FILLING OF THE FORM ILLUSTRATIVE EXAMPLES


Some examples of entries to help the Appraisee and Appraisers to fill the PAR form indicated
are indicated below:

Constraints: Non availability of equipment.


: Inadequate delegation power.

73

: Long geographical distance.


: Communication net- work is weak.
: Office records are inadequate and traceable.
: Inadequate laboratory facilities/ support.
: Voluminous back log/untrained staff.

Opportunities: Equipment/P&M new.


: Well trained personnel.
: Proximity to industrial city.
: Infrastructural support.
: Peer group support.
: New vistas of challenge.
Development: This means new processes, system procedure which are developed and
adopted. Only one item would be more than adequate. For example, reference may be made
about new system for compiling accounts on time, standardization of equipment, new system
of maintenance, safety and new mining methods etc
: In respect of development of people mention name of one or two subordinates
who were motivated to their working may be listed indicating specially the manner in which
it was done.

Special Achievements: Mention may be made about the earnestness with results were
achieved, for example these could be listed.
-preparation of operation manual
-Absorption of new technology
-Substantial increase in equipment utilization

74

-Staff deployment/retraining
-Designing new information system
-Substantial equipment re-habilitation
- Improvement in quality of coal and sales realization

Special Interest:
Mention may be made of the Appraisers professional interest which may be even not related
to the job entrusted to him. These could be in respect of writing, reading, cultural activities,
sports etc.
: In the matter of social managerial dimension has to be made about the
contribution of the executives in developing the social organization in the company including
contribution to activities outside the company. The Appraiser has to make his observation by
indicating G (Good) ,N(Normal),and P(poor).

Special Instructions
In respect of Development needs of an executives reference be made about areas of training
which would help the executives to grow further in his career, and these may be indicated in
terms of topics in respect of managerial skills and technical skills. Job rotation of the
executives as a means of his further development and career growth is indicated.

General instructions
In all case where the grading are Outstanding, Very good, and E (below average), the
Appraise must mention specifically the event to support his views in the column provide for
criteria incidents; otherwise it will be considered subjective.

75

Mere achievements of targets or marginal raise over it do not signify outstanding /very good
performance. Remarks like hard working and honest also do not merit a grade of very
good or outstanding.

FORM 1V
(Annual Appraisal Form for all Non-executive Employees Borne in
NCWA Scale of Pay)

Office of the
..
Report for year
ending...
(Strike out column not applicable)
1. Name of Employee
2. Date of Birth
76

3. (a)Designation
(b) Grade
(c)Nature of Duties
4. Educational Qualification
5. Date of joining the Deptt
6. Preceding Deptt/Section of Posting
7. Period for which the employee has worked
Under the Reporting Officer in the year
ASSESSMENT BY THE REPORTING OFFICER
8. Professional/technical general

Very Good

Good

Poor

Knowledge and application


9. If Supervisor:
(a)Capacity to plan, organize and execute
(b)Delegating duties to and taking work
From subordinates exercising effective
Supervision and control, maintenance
Of discipline and leadership
10. Dose he/she rise to occasion?

Yes

No

11. Cost consciousness

yes

No

12. Punctuality and regularity in attendance

Punctual

13. Industry and aptitude for work

Very Good

Good

Poor

14. Maintenance of official records

Very Good

Good

Poor

15. Accuracy &Speed

Very Good

Good

Poor

77

Irregular

16. Capacity to express


17. Has he been warned for any failure?
Or any inadequacy in the year in writing
Or orally? If so, give brief details.
18. Relationship with colleagues and

Very Good

Good

Poor

Fellow employee
19. Was any disciplinary action initiated
against him during the period under
report and if so, the result thereof?
20. Loyalty and honesty
21. Does his health interfere with his work?
22. Fitness for confirmation/promotion
23. General Remarks, if any
24. Overall Grading

Outstanding

Very Good Good

Poor

Signature of Reporting
Officer

Name (in Block Letters) of the Reporting


Officer

Dated

Designation
REMARKS OF REVIEWING AUTHORITY
78

Outstanding

Very Good

Good

Poor

Signature of Reviewing Officer


Name (in Block Letters) and Designation of the Reviewing Officer

Rating Poor will only be considered as Adverse Entry. In case the employee who has been
rated Poor or in case of any Adverse Entry in the above report, the employee should be
shown this report and in the token there of his signature be obtained.
Signature of the
Employee

INFERENCE

Question No. 1

Out of the respondent so interviewed indicates that 83% of the persons are aware of the
method of performance appraisal system applicable to them where as 3% of respondents are
not aware of the method of Performance Appraisal and14 % have expressed their ignorance
to the Performance Appraisal system prevailing in the company.
On the whole it indicates that people are aware of the Performance Appraisal system
applicable to the company.

79

Aware of the method of Perfofmance Appraisal which is followed in the Organisation

14%
3%
a. Yes

b. No

c. Do not know

83%

Question No. 2

Out of the respondent so interviewed indicates that 100 % of persons are agreed to the need
of Performance Appraisal system in which 67 % are agreed and 33 % are strongly agreed.
So it can be concluded that majority of the people agree that there is a need of Performance
Appraisal system in the organization.

80

Do you agree to the needs of Performance Appraisal System in the Organization?

33%
a. Strongly Agree

b. Agree

c. Disagree

d. Strongly Disagree

67%

Question No. 3

Out of the respondents so interviewed indicates that only 5% of people are rated the
performance rating system prevailing in the company to excellent and 17% of the
respondents are rated to the prevailing system to very good where as 61% of people rated it
good and 17 % considered it average.
So we can conclude that majority of the people are satisfied with the existing system of
Performance Appraisal in the company.

81

How do rate the Pe rformance rating syste m pre vailing in C.C.L?

6%
17%
17%

a. Excellent

b. Very Good

c. Good

d. Average

61%

Question No. 4

Out of the respondents so interviewed indicates that 91% of the people agree that there is influence of

Performance Appraisal system over the efficiency & career growth of the workers on which
19% of people strongly agree to it and 9 % of the people disagree with the question.
So it can be concluded that majority of people believe that the existing Performance
Appraisal system does influence the efficiency & career growth of the workers.

82

Does Performance Appraisal System has its influence over the efficiency & career growth of the workers?

6% 3%

19%
a. Strongly Agree
b. Agree
c. Disagree
d. Strongly Disagree

72%

Question No. 5

Out of the respondents so interviewed indicates that 50% of persons have responded that training
imparted to them in past does have an effect on their performance and 28 % of people believe that
training imparted to them does not have any effects on their performance where as 22% of
respondents do not want to give any comments.
So it can be concluded that training imparted to people in past do effects their performance.

83

Doe s training imparte d to you in the past has e ffe ct on your pe rformance ?

22%

a. Yes

b. No

c. No Comment
50%

28%

Question No. 6

Out of the respondents so interviewed indicates that about 36 % of the respondent indicates
that Perfomance Appraisal System bring out real training & development needs and 33 %
said it does not bring out real training & development needs where as 31 % do not want to
give any comments.
Hence it can conclude that Performance Appraisal do bring the real training & development.

84

Does the current System of Preformance Appraisal bring out real training & development needs?

31%
36%
a. Yes

b. No

c. No Comment

33%

Question No. 7

Out of the respondents so interviewed indicates that 4 % of people gets only 1 promotion in
their tenure of service, 25 % of people gets 2 promotions in their tenure, 32 % of people gets
3 promotions in their tenure and only 39 % of people gets 4 or more promotions in their
tenure of service.
So it can be concluded that period to remain in a particular post is too long or rather
promotion occurs after a long time. Promotion in C.C.L occurs in a fixed interval of period.

85

How many promotion do you get in your te nure of se rvice ?

4%

25%
39%
a. 1

b. 2

c. 3

d. 4

32%

Question No. 8

Out of the respondents so interviewed indicates that 22 % of the people agrees that there is an
alternative way to compensate them if promotion has not been given to them where as 64 %
of people dont agree to it and 14 % of persons is indifferent to such thing as they gives no
comment to it.
So we can conclude that the alternative way to compensate the employees if promotion is not
provided to them is very less.

86

The re is any way of compe nsation if promotion is not given.

14%
22%

a. Yes

b. No

c. No Comment

64%

Question No. 9

Out of the respondents so interviewed indicates that 67 % of people agree that Performance
Appraisal system helps in taking right decision regarding promotion on which 11 % are
strongly agree while 33 % disagree with the question raised.
So we can conclude that Performance Appraisal system do helps in taking right decision
regarding promotion.

87

Does Performance Appraisal help in taking the right decision regarding the promotion?

11%

33%
a. Strongly Agree

b. Agree

c. Disagree

d. Strongly Disagree

56%

Question No. 10

Out of the respondents so interviewed indicates, 70 % of people believe that there is a system
of Service Linked Upgradation in the organization and 8 % of people dont agree to it where
as 22 % people gives no comment to it.
So we can conclude that there is a system of SLU in the organization which is the way to
compensate the people when promotion is not given to them due to some circumstances.

88

The re is a syste m of SLU/SLI in the organization

22%

a. Yes

b. No

c. No Comment

8%

69%

Question No. 11

Out of the respondents so interviewed indicates that 70 % of people believe that their
relationship with the superior, peers & subordinates affects the performance and 19 % of
people are strongly agree 11 % of the people are disagree with such a relationship on which 3
% are strongly disagree
So we can conclude that the relationship of people with their superiors, peers & subordinates
do effect their performance.

89

Re lationship with supe rior, pe e rs and subordinate s affe ct the ir pe rformance

8%

a. Strongly Agree

3%

b. Agree

19%

c. Disagree

d. Strongly Disagree

69%

Question No. 12

Out of the respondents so interviewed indicates that 78 % of respondents agree that


discussion of the tasks do take place with their superior and 8 % of people does not agree to it
where as 14% of peopledo not want to give any comments.
So we can conclude that discussion of the task takes place to the people by their seniors.

90

Do discussion on the task asssigned to you take place with your superior?

14%

8%
a. Yes

b. No

c. No Comment

78%

Question No. 13

Out of the respondents so interviewed indicates that only 42 % of people agree that
performance imbalance is communicated to them satisfactorily and 36 % of respondents does
not agree to it where as 22 % of people do not want to give aany comments.
So we can conclude that performance imbalance is communicated to the employees
satisfactorily

91

Whether Performance imbalance communicate d to you satisfactorily?

22%

a. Yes

b. No

42%
c. No Comment

36%

Question No. 14

Out of the respondents so interviewed indicates that 42 % of respondents strongly agreed that
promotion provide motivation to the employee and 33 % of people only agreed to it where as
25 % of respondents disagreed to it.
So we can conclude that promotion provide motivation to employees in C.C.L.

92

Do you agre e that promotion provide motivation to you?

25%

a. Strongly Agree

b. Agree

c. Disagree

42%
d. Strongly Disagree

33%

Question No. 15

Out of the respondents so interviewed indicates that 70 % of people wants to have an open
performance appraisal system in the organization and 30 % of people as 22% of people are
indifferent so they gives no comment.
So we can conclude that employee wants to have an open appraisal system in the organization
in spite of the prevailing system in the organization.

93

Do you want open Performance Appraisal System in place of present prevailimng system?

30%
a. Yes

b. No

c. No Comment

70%

Question No. 16

Out of the respondents so interviewed indicates that 5 % of the people said that time fixed for
Performance Appraisal is 3 months and 6 % of the perople said it is 4 months and 17 % of
them said it is 6 months where as 72 % of the people said it is 12 months.
So we can conclude that majority of the people said that time fixed for Performance
Appraisal is 12 months.

94

Time fixe d for Pe rformance Appraisal

6%

6%

17%
a. 3 months

b. 4 months

c. 6 months

d. 12 months

72%

Question No. 17

Out of the respondents so interviewed indicates that 39 % of the respondent agree that the
current Performance Appraisal System is transparent and 22 % said it is not transparent
whereas 39 % do not want to give any comments
So it can be concluded that the current Performance Appraisal System in C.C.L is not
transparent

95

Is curre nt Performance Appraisal Syste m transpare nt?

39%
a. Yes

b. No

39%
c. No Comment

22%

Question No. 18

Out of the respondents so interviewed indicates that 39 % of the respondent agree that present
Performance Appraisal System rates their efficiency effectively and 28 % said they do not
agree that Performance Appraisal System rates their efficiency effectively where as 33 % do
not want to give any comments.
So it may be concluded that the present Performance Appraisal System rates their efficiency
effectively.

96

Is the present performance Appraisal Syste m rate s your efficiency e ffectively?

33%
39%
a. Yes

b. No

c. No Comment

28%

Question No. 19

Out of the respondents so interviewed indicates that 55 % of the respondent agree that the
quantity of work gets reflected in their Performance Appraisal and 28 % said it is not
reflected where as 17 % do not want to give any comments in the matter.
So it can be calculated that quantity of work get reflected in their Performance Appraisal.

97

Doe s quantity of work ge t re fle cte d in your Pe rformance Appraisal?

17%

a. Yes
b. No
c. No Comment
56%
28%

Question No. 20

Out of the respondents so interviewed indicates that 61 % of the respondent agree that
Performance Appraisal System dependent upon quality of work and 14 % said it
is not dependent upon quality of work where as 25 % expressed their
ignorance.
So it can conclude that majority of the respondent agree that Performance
Appraisal System dependent upon quality of work

98

Is the Performance Appraisal System dependent upon quality of work?

25%

a. Yes

b. No

c. No Comment

61%

14%

FINDINGS
India is a third largest country in the production of coal. Coal India Limited is the main
source in the production of coal. Coal India limited is the second greatest employer after
Railway.
C.C.L, having a vast repot ire of human resource, follow a well defined metrices to appraise
performance for both executive & non executive.
With the help of interview and discussion and on the basis of instrument of defined
questionnaire I found that the member of the C.C.L is aware of the method of Performance
Appraisal and they feel the need of this system in the Organization.

99

Performance Appraisal in the company is being at a regular interval of one year (12 months).
They feel that the system has its influence over the efficiency & career growth of the workers
Performance Appraisal of individual employee is sought for by the NEE department only
when the promotion of the concerned employee is under consideration. Otherwise the
Performance Appraisal of the worker concerned is kept with the HOD of the department
where the worker is posted.
Research reveals that there is general awareness regarding the Performance Appraisal process
in the organization.
The Performance Appraisal in the company is probably a confidential one where there is no
interaction of the superior with the subordinate at the time of assessment of performance.
However instances have been seen that the Performance Appraisal is made in front of the
worker but even then the strength and weaknesses of the worker has not been conveyed to
him.
The study of Performance Appraisal system at C.C.L. has given me an opportunity to have
closer look at the different imperatives of the appraisal system as an important domain of HR
delivery.
After studying the different factors that affects variably the performance, I would like to give
certain suggestions herewith, which further can be added on the agenda of HR initiatives at
C.C.L.

SUGGESTION
1. Features and tools of Performance Appraisal system should be changed so that the
subjectivity is reduced and an individual bias that may impact the effectiveness of
performance management system is inactivated.
2. System should be redesigned for objectivity, transparency and consistency across
C.C.L.
3. Management by objectives (MBO) should also be applied. It is the modern and
advanced method of appraisal. MBO is potentially a powerful philosophy of
managing and an effective way for operationalizing the evaluator process. It seeks to
minimize external controls and maximize internal motivation through goal setting
100

between the superior and subordinates and increases the subordinate control over their
own work.
4. The self appraisal form should have open-ended approach to get the true picture of
individuals competence level (strength and weakness). The employee should not
hesitate in giving their weakness.
5. The process of 360-degree appraisal should be applied to make the system more
transparent.
6. The review should be done quarterly and specifically focused on feedback and
coaching and hence should require the appraisee and the appraiser to have formal
feedback session. This will further help the appraiser in both obtaining information
and providing inputs on how an appraisee is performing and whether or not he /she is
headed in the right direction. It will be an opportunity for the appraisee to get
resources and help that may be required for enhancing his/her own performance.
7. Personal interview can be introduced in Performance Appraisal system for promotion
in C.C.L.
8. Apart from assigned jobs which are very difficult to quantify, a system needs to be
involved which is imperative.

Conclusion

The study on Performance Appraisal at CCL has given me opportunity to have a closer look
at the imperatives of the performance Appraisal System as a domain of HR delivery.
It has enhanced my knowledge as how an organization work and operates to perform its
operations effectively and efficiently. The project has not only helped me to have close
insight into the practical implication of business process but also the performance appraisal is
done.

101

While going through the different process followed at CCL within performance Appraisal, I
came to know of the importance of performance appraisal. This opportunity to work as
researcher has helped me understanding the theoretical and practical aspects of management.
The summer project, also made me realize the importance of HR as a fascinating function in
an organization. I got to know of the importance of communication and interpersonal skill in
getting things done from others. In a nut shell, it was great learning for me as management
student.
With the help of personal interview and discussion with the employee and on the basis of
instrument of defined questionnaire I reached on the following conclusion.
1. According to respond given against the question no. 1, 2, 3, it can conclude that
majority of the respondent are know about the Performance Appraisal System and
they feel its need in the organization, they rated it good. It means that Performance
Appraisal System is satisfactory in the organization.

2. According to respond given against the question no. 4, 5, 6, 9 and 14 it can conclude
that Performance Appraisal System affected the workers in many respect. They affect
the efficiency & career growth of the workers. It brings out training 7 development
needs of the workers. It means it provide motivation to workers and helps in taking
the right decision.
3. According to respond given against the question no. 11,12,13,15 and 17, the
relationship of the workers with superior, peers and subordinate is good. Any task
assigned to workers is communicated to them. Thus it can be concluded that open and
transparent Performance Appraisal System is prevailing in the organization and their
relationship is satisfactorily.
4. According to respond given against the question no.7, 8 and 10, it can conclude that
majority of the respondent get promotion in their service period. If they do not get any
promotion, they are compensated by other means like SLU/SLI. It means ,workers are
satisfied with the Performance Appraisal System in the organization.
5. Annual Performance Appraisal System is prevailing in the organization

102

6. According to respond given against the question no.18,19 and 20, it can be concluded
that Performance Appraisal System dependent upon quantity and quality of work.It
means it rate the efficiency of the workers effectively.

Questionnaire
For Study
On
PERFORMANCE APPRAISAL SYSTEM
AT
CENTRAL COALFIELDS LIMITED
103

DARBHANGA HOUSE, RANCHI (HEAD QUARTER)

Submitted By:Kirti Priya Anand


Roll No.
(Master in Personnel Management)
2008 -09

NEVILLE WADIA INSTITUTE OF MANAGEMENT


STUDIES & RESEARCH
PUNE UNIVERSITY , PUNE

Questionnaire

All the information will be kept confidential.

Personal Data
1. Department: ..
2.

Designation: .

3. Grade:
4. Tenure of service in company: ..
5. Tenure of grade in present position: ..
104

6. Gender: ..
7. Age:

1. Are you aware of method which is followed for your Performance Appraisal in this
organization?
a)Yes
2.

b)No

c)Do not know

Do you agree to the need of Performance Appraisal system in any organization?

a)Strongly Agree
Disagree

b)Agree

c)Disagree

d)Srongly

3. How do you rate the Performance rating system prevailing in C.C.L?


a)Excellent

b)Very Good

c)good

d)Average

4. Does performance appraisal system has its influence over the efficiency & career growth
of
workers?
a)Strongly Agree
Disagree
5.

b)Agree

c)Disagree

d)Strongly

Does training imparted to you in the past has effect on your performance?
a)yes

b)No

c)No Comment

6. Does the current system of Performance Appraisal bring out the real training &
development needs?
a)yes

7.

b)No

c)No Comment

How many promotion do you get in your tenure of service in this organization?
a)1

b)2

c)3

d)4

8. Is there any way to compensate you if promotion has not been given to you?
a)Yes

b)No

c)No comment

9. Does performance Appraisal system helps in taking the right decision regarding the
promotion?
a)Strongly Agree
Disagree

b)Agree

c)Disagree

105

d)Strongly

10. Whether there is a system of SLU(service linked upgradation)/SLI(service linked


increment)?
a)yes

b)No

c)No comment

11. Does your relationship with superior, peers and subordinates affect your performance?
a) Strongly Agree
Disagree

b)Agree

c)Disagree

d)Strongly

12. Do discussion on the task assigned to you take place with your superior?
a)Yes

b)No

c)No comment

13. Whether performance imbalance communicated to you satisfactorily?


a)Yes

b)No

c)No comment

14. Do you agree that promotion provide motivation to you?


a)Strongly Agree
Disagree

b)Agree

c)Disagree

d)Strongly

15. Do you want open Performance Appraisal System in place of the present prevailing
system?
a)Yes

b)No

c)No comment

16. What is the time fixed for your Performance Appraisal?


a)3 months

b)4 months

c)6 months

d)12 months

17. Is current Performance Appraisal System is transparent?


a) Yes

b)No

c)No comment

18. Is the present Performance Appraisal System rates your efficiency effectively?
a)Yes

b)No

c)No comment

19. Does quantity of work gets reflected in your Performance Appraisal?


a)Yes

b)No

c)No comment

20. Is the Performance Appraisal System dependent upon quality of work?


a)Yes

b)No

c)No comment

21. Any suggestion for the improvement of appraisal system at CCL ? Please prioritize them
in order?
a).
b)
106

c).

BIBLIOGRAPHY

Armstrong, M (1991) A Handbook of personnel management practice, fourth edition,


London, Kogon

Aswathapa, K. (2008) human Resource Management, fifth edition, new Delhi, Tata
McGraw-Hill publishing co.ltd.,

Haynes, E. Marion, (1992) Managing Performance, New Delhi, Galgotia


Publications(p) ltd.

Jain C.Sugan (2002) Performance Appraisal, Jaipur, Raj Publishing House


107

http://WWW.Performance_appraisal.com

http://en.wikipedia.org/wiki/performance_appraisal

http://www.business-marketing.com/store/appraisals.html

http://www.businessballs.com/performanceappraisals.html

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