A

Summer Internship Project

On

“Impact of Performance Appraisal System in GPIL”

Submitted for partial fulfillment of requirement for the award of degree

Of

Post Graduate Diploma in Management

PGDM

Of

DISHA SCHOOL OF MANAGEMENT

Raipur (C.G.)

Session 2009-11

Supervised By External Guide: Supervised By Internal Guide:

S. SURESH Dr. MONIKA SETHI
Sr. Manager HR HOD
Human Resource, GPIL Human Resource, DSM

Submitted by:
2010
DEPARTMENT OF MANAGEMENT
DISHA SCHOOL OF MANAGEMENT
AICTE Approved, Ministry of HRD Government of India

DECLARATION
 I the undersigned solemnly declare that the report of the project work entitled
“Impact of Performance Appraisal System in GPIL”, is based my own work carried out
during the course of my study under the supervision of Dr. Monika Sethi.

I assert that the statements made and conclusions drawn are an outcome of the project
work. I further declare that to the best of my knowledge and belief that the project report
does not contain any part of any work which has been submitted for the award of any other
degree/diploma/certificate in this Institute or any other Institute.

___________________
(Signature of the Candidate)

CERTIFICATE BY INTERNAL GUIDE

This to certify that the report of the project submitted is the outcome of the project
work entitled “Impact of Performance Appraisal System in GPIL” carried out by carried
by under my guidance and supervision for the award of Post Graduate Diploma in
Management of Disha School of Management, AICTE approved, Ministry of HRD
Government of India Raipur (C.G), India.
 To the best of the my knowledge the report
i) Embodies the work of the candidate himself,
ii) Has duly been completed,
iii) Fulfils the requirement of the ordinance relating to the PGDM degree of the
Institute and
iv) Is up to the desired standard for the purpose of which is submitted.

_______________________
(Signature of the Guide)
Name:
Designation:
Department:
Name & Address of the Institute

The project work as mentioned above is hereby being recommended and forwarded for
examination and evaluation.

CERTIFICATE BY THE EXAMINERS

This is to certify that the project entitled

(Impact of Performance Appraisal System in GPIL)

Submitted by

Bhoopendra Kumar Sahu Roll No.:0908042 Enrollment No.: 0908042. Has been examined by
the undersigned as a part of the examination for the award of Post Graduate Diploma
in Management of Disha School of Management, AICTE approved, Ministry of
HRD Government of India Raipur (C.G), India.

________________ __________________
________________ __________________
Name & Signature of Name & Signature of
Internal Examiner External Examiner
Date: Date:

Forwarded by

Academic Head
Department of Management

ACKNOWLEDGEMENT

I feel it my profound privilege to express my most sincere gratitude and indebtedness to my

project guide Mr. S. SURESH, Sr. Manager HR who was instrumental in providing me direction, constant
encouragement and co-operation in my attempt to take this project to its logical conclusion.

I also want to thank whole HR team at GPIL for having granted me this wonderful opportunity to pursue my
summer project at GODAWARI POWER AND ISPAT LTD. I would like to extend my gratitude to all the
respondents who featured in my survey but remain as nameless entities and also to all those who have been of
help directly or indirectly but have not featured here.
I would like to thank all my teachers at Disha School of Management and especially my mentor Dr.
MONIKA SETHI without whose support this summer training would not have been possible. In brevity, it
was pleasure working in the organization, which provided me the most congenial environment for learning.

___________________
(Signature of the Candidate)

PREFACE

The purpose of this study was to determine the factors which the employees in the organization
preferring for their appraisal and the employees satisfaction with the existing appraisal system.

The results of the current study can be used by organization to develop policies, practices, and
strategies regarding their appraisal system and can create greater efficiencies in meeting strategic
business objectives. Findings were made based on the data collected from 100 employees with the aid
of a questionnaire in which 5-point likert scale and rating scale were employed.

Most of the respondents rated both subjective and objective measures as preferable. It was also found
that some employees surveyed are dissatisfied with their present organization appraisal methods and
 there are great chances that they may leave their employer if they get better job opportunities from any
better employer. The employer must pay attention to this situation and design effective methods as
remedies at the earliest or else they may soon lose their efficient workforce

Table of Contents
Chapter Title Page No.
I Introduction 1
1.1 introduction to the topic
1.2 objectives of the study
1.3 scope of the study
1.4 limitations of the study
II Concept and Review 7
2.1. concepts of the study
2.2 review of related literature
2.3 company profile
2.4 product profile
III Methodology 21
3.1 introduction
 3.2 research design
3.3 sampling techniques
3.4 data collection
3.5 tools of the study
IV Analysis and Interpretation 24
4.1 analysis of the data

V Suggestion and Conclusion 44

5.1 findings of the study
5.2 suggestions
5.3 conclusion

Bibliography 48
Appendix 49
Chapter – I
Introduction
 CHAPTER 1

INTRODUCTION

1.1 INTRODUCTION TO THE TOPIC

Managing employee performance is an integral part

of the work that all managers and rating officials perform throughout the year. It is as
important as managing financial resources and program outcomes because employee
performance or the lack thereof, has a profound effect on both the financial and program
components of any organization.

Performance appraisal system is the best way to maintain the assets of an organization that are the Employees.

A formal definition of performance appraisal is:

It is the systematic evaluation of the individual with respect to his or her performance on the job and his or
her potential for development.

Definitions
180˚ Appraisal extends the traditional appraisal process to make the feedback process two-way. Feedback from team
members can be provided to their line manager on a one-to-one basis during the individual’s appraisal discussion, or it
can be collated and presented as group feedback from all team members.

360˚ Appraisal involves capturing feedback about an individual from a range of people (respondents) including his or
her line manager, colleagues and direct reports. The data is then compared with the individual’s own assessment of their
performance. In some models, external contacts and partners may also be involved.

GODAWARI POWER AND ISPAT LTD. currently having 180˚ Performance Appraisal System.

Performance appraisal system in GPIL has two over arching Goals:

1. To encourage high levels of employee motivation and performance.

2. To provide accurate information to be used in managerial decision making.

These goals are interrelated because one of the principal ways that managers motivate employees is by
making decisions about how to distribute outcomes to match different levels of performance.
Developing a Performance Appraisal System in GPIL:

Managers can use the information gained from performance appraisal for two main purposes:

1. Developmental purposes such as determining how to motivate an employee to perform at a high level,
evaluating which of an employee's weaknesses can be corrected by additional training, and helping an
employee formulate appropriate career goals.

2. Evaluative, decision-making purposes such as deciding whom to promote, how to set pay levels, and
how to assign tasks to individual employee.

Methods of Appraisal in GPIL

The measures managers use to appraise performance can be of two types:

1. Objective and,

2. Subjective.

• Objective measures such as numerical counts are based on facts. They are used primarily when
results are the focus of Performance appraisal. The number of televisions a factory employee
assembles in a day, the dollar value of the sales a salesperson makes in a week, the number of patients
a physician treats in a day and the return on capital, profit margin, and growth in income of a business
are all objective measures of performance.

• Subjective measures are based on individuals' perceptions, and can be used for appraisals based on
traits, behaviors, and results. Because subjective measures are based on perceptions, they are
vulnerable to many of the biases and problems that can distort person perception. Because there is no
alternative to the use of subjective measures for many jobs, researchers and managers have focused
considerable attention on the best way to construct subjective measures of performance.

STATEMENT OF THE PROBLEM

The performance appraisal of the employees in the organization should be an effective tool for
measuring the employee’s performance. If the performance not measured in a real manner it will be a critical
issue. A study on impact of performance appraisal was undertaken to study the reasons and ways to improve
the condition.

1.2 OBJECTIVES OF THE STUDY

The present study on “Impact of Performance Appraisal System in GPIL” was undertaken with the
following objectives keeping in mind for the benefit of employees of GPIL:

• To find out the employee’s satisfaction level regarding the existing performance appraisal
system.
• To find out whether the company is providing effective training for the improvement of
employee’s performance.
• To determine the gaps in the existing system.
• To determine what type of appraisal did the employee’s really looking for.
• To find is there is any opportunities provided for the employees to improve their performance.

1.3 SCOPE OF THE STUDY

The scope of the project is fully dependent upon the objectives of the project :

• This study can be helpful for GPIL while conducting any further research.
• The study is also helpful in finding out the respondent’s opinion towards certain
attributes.
 • It is also helpful in finding out the reach and effectiveness of the performance
appraisal system in GPIL.
• This study also serves as a base for understanding the perception about the
employees regarding their performance appraisal.
• With the results of the study GPIL can improve their standards of 180-degree appraisal system.

1.4 LIMITATIONS OF THE STUDY

• Time and resource were the major constraints during the execution of the project. Therefore
only a limited number of employees were included in the project.
• The respondents were selected inside the organization only. So it cannot be generalized as a
whole.
• Some of the respondents were not even ready to spare time with the researcher.
• There are many respondents who hesitated to answer the questionnaire.
• The human behaviour is dynamic and hence the results may not hold good for a long time.
• The results of the survey are totally dependent on the accuracy and authenticity of the
information provided by the respondents.
 CHAPTER 2

CONCEPTS AND REVIEW

2.1 CONCEPTS OF THE STUDY

2.1.1 Concept of Performance Appraisal System

All over the world, employees would love their jobs, like their co-employee s, work
hard for them, get paid well for their work, have ample chances for advancement, and
flexible schedules so they could attend to personal or family needs when necessary.

The performance appraisal is to assess a person and let him to know where he is
being standing along with the job. It is to find whether he is performing with his task or
not.

2.2 REVIEW OF RELATED LITERATURE

1. M Bowels and G Coates (1993)

The Management of Performance as Rhetoric on Reality

ARGUMENT:
 Managers are mostly appraised by results, but results alone cannot reflect
performance because it is still affected by many other factors.

RESEARCH:

The problems faced by the organization experiencing some difficulties were

measuring performance and the extra demands made on managers.

CONCLUSION:

Management should provide the enabling conditions through which work is

performed. Performance appraisal should be an opportunistic means to address performance
issues rather than a coherent systematic process.

2. D Winstanely and K Stuart-Smith (1996)

RESEARCH:

➢ Conclusive evidence that leads to improved performance is lacking.

➢ Not enough time is given to the process.
➢ It reinforces modes of intrusive control.

CONCLUSION:

The focus must move away from measurement and judgement towards developing,
understanding and building up trust to allow a genuine dialogue to take place.
2.3 COMPANY PROFILE

Godawari Power & Ispat Ltd. (GPIL) a public Ltd. Co., formally Ispat Godawari Ltd (IGL),
belonging to HIRA Group of Industries, Raipur, C.G. was incorporated in 1999 to set up an integrated steel
plant with captive power generation under the guidance of visionary leadership of Shri B. L. Agrawal,
Managing Director, a techno commercial person (Qualified Engineer) having proven wide experience in
commissioning & running of Cement Plant, Sponge Iron Plant etc., backed by a dedicated team of
professionally qualified personnel under the stewardship of board of Directors having expertise in
Engineering finance administration GPIL is listed co. with the nation stock exchange and Bombay Stock
Exchange.

GPIL is a flagship Company of Raipur-based Hira Group of Industries, which is an integrated steel
manufacturer and is having dominant presence in the long product segment of the Steel industry, mainly into
mild steel wire. Today, GPIL is an end-to-end manufacturer of mild steel wires. In the process, the company
manufactures sponge iron, billets, Ferro alloys, captive power, wires rods (through subsidiary company), steel
wires, Oxygen gas, fly ash brick and last but not the least pallets. GPIL is also awarded rights for Iron Ore
and Coal Mining for captive consumption, as a result of which, the company has managed to traverse the
entire value chain (raw material to final product) in steel wires and is now a fully integrated manufacturer.

GPIL has come a long way since it started its operation in Raipur, Chhattisgarh as a sponge iron manufacturer
in the year 2001. Over the last few years, the company has scaled up its capacity five fold and is today the
third largest producer of coal based sponge iron in India and is one of the largest players in the mild steel
wires segment. Not only has the company increased its scale during the aforesaid period, it has also moved up
the value chain.

Milestones

• The Company crossed Rs 1000 crore marks in turnover. 2007-08 has seen an all around growth in the
performance of the company, backed by higher volumes of production and better price realizations.

• The company has achieved consolidated revenue of Rs. 936 crore during the year under review as
compared to revenue of Rs. 551 crore during the previous year, a growth of 70%.

• The consolidated net profit after tax grew by 82% to Rs. 99 crore as against Rs. 54 crore during the
previous year.

Considering the fact that just two years ago, when we concluded our initial public
offering our revenues were just 275 crore and net profit of Rs. 22 crore, the company has within a short span
of time achieved significant growth in volume of business, revenue, profits and net worth and achieved annual
compounded growth of over 80% in terms of revenue and profitability last during two years.

Future Plans

The growth drivers are still on with further plans to improve the operating margins by entering into backward
integration through mining of iron ore and coal and venturing into value added manufacturing facilities by
setting up iron pelletisation plant-a process to convert iron ore fines into pellets which can be used as a raw
material for making sponge iron as replacement of sized iron ore.

GPIL has been granted mining lease for 2 iron ore mines at Ari Dongri and Boria Tibu in Chattisgarh. This
would be on an area of 216 hectare & prospecting license for another iron ore mines with an area of 754
hectare in Chattisgarh.

GPIL has also been granted mining rights in consortium for mining of coal in Chattisgarh and the coal mines
are being developed through special purpose Joint venture Company which has also achieved significant
progress towards getting various regulatory approvals and coal mining operations are expected to commence
some time in FY 2011.
To insulate against the hazards of price fluctuation due to Govt. fiscal policies, uncertainty of supplies
ensuring energy securities and of all basic & primary inputs GPIL carried out backward integration by
entering into mining of coal/Iron ore & generation of captive power and forward integration by acquiring wise
drawing plants (RRL), promoting 10% subsidiary Co. for venturing into generating of merchant power,
inverting in J. V. Companies for development of coalmines and setting up railway siding for captive use.

Consistent with the vision, GPIL, continually endeavors in mastering the techniques for improving the factors
affecting there mission with environment, customers, benefits to society, public Image, philosophy & values,
profitability & growth; pursuing innovation, Creativity, Diversity, environment excellence and change. We
believe in blue ocean technology i.e., a sound strategy model to put technology to use in a commercial
way inducting low cost process planning, preparing new technology road map benchmarking of process
with world’s best to ensure desired outputs from the inputs.

“To become one of the most competitive integrated steel plants with diversified products, specializing in
particular to be reckoned with as a dominant leader in wire segment contributing substantially in meeting
consumers needs, creating shareholders value and spearheading to be a leader in global wire segment market,
pari pasu with powering India’s growth to serve community and the nation in the decades to come.”

We exist to create, make and market useful products and services (Power)
to satisfy the needs of our customer throughout the world. The means
envisaged to achieve this are high technology and productivity, consistent
with modern management practices, we believe in honesty and integrity apart from profitability which is a
driving force for economic growth.

Values at GPIL
believe in: To Employees:
• Innovation • Concern for employee
• Creativity • Professional Work Culture
• Diversity • Trusteeship, Respect for individual
 • Environmental To Society:
excellence • Responding to the needs of community
• Change • Partnering the community in timely manner
• Customer Focus • Providing Aids whenever & wherever
• Organizational Pride Required
• Total quality
• Employees

HR Policy of GPIL

To meet challenging demands of the Global business environment & aspirations of the Company to grow
within India & beyond, the focus of our HR Strategy is to develop business leaders for tomorrow.

Align our HR policies with our strategy of being a technology savvy, customer focused & cost competitive
Company & foster a climate of creativity, innovation and enthusiasm.

GPIL HR policies are to:

• Attract and retain the best talent;

• Embellish and enhance their capabilities through training;

• Motivate them to contribute their best;

• Reward & Recognize to develop a high performing organisation;

• Provide opportunities for growth and development;

• Create, nourish and maintain an extremely open, congenial, and receptive work environment;

• Provide leadership that is not only inspirational, but to create synergies which lead to a team output.

Role of HR in GPIL is to:

• Shift from support group to strategic partner in business operations.

• Spend more time and effort understanding the business environment and the key strategic issues faced
by the Company.

• Develop ‘Global Managers’ for tomorrow to ensure the company’s role as a global player.

• Build performance measures to ensure achievements of business objectives.

 • Developing professional attitude, approach & develop required competencies.

• Inculcate a spirit of learning and enjoying challenges.

• Provide job contentment through empowerment, accountability and responsibility.

• Demonstrate fairness, equality of opportunity and respect to all.

We vehemently recruit the young brain as GET/DET/Management Trainee in almost all field of faculty from
local and central India.

The Board of Directors has a combination of Executive and Non-Executive Directors. The Board comprises
of five Whole-time Directors (the Managing Director and four Executive Directors) and six Non-executive
Directors. Four of the Non-executive Directors are Independent Directors. Accordingly, the Composition of
the Board is in conformity with the Listing Agreement.

Except the Managing Director, all other Directors are liable to retire by rotation as per the provisions of the
Companies Act, 1956.

The names and categories of the Director on the Board and also the number of Directorships and Committee
Memberships held by them during 2007-08 in other Companies are as under:

Mr. G.B. Desai

Chairman – Independent Director

Shri G.B. Desai aged 81 years, has to his credit wide experience in the field of capital markets where he is
dealing for over three decades. He is Ex President of Bombay Stock Exchange. He holds directorship of Axis
Capital Markets India Limited and Tracom Stock Brokers Private Limited.
 Mr. O.P. Agrawal
Vice Chairman, Non Executive Director

Shri O.P. Agrawal, son of late R.R. Agrawal, aged 56 years is a Commerce Graduate. He has vast Industrial
Experience of Setting up of Ferro Alloys and Power Plants. He serves on the Boards of Hira Power & Steels
Limited, Hira Global Limited, Hira Global Marketing Limited, Hira Global Alloys Limited & Hira Power and
Alloys Limited.

Mr. B. L. Agrawal
Managing Director

An Electronic Engineer, he is a first generation entrepreneur. While his family concentrated on its traditional
trading business, it was his entrepreneurial spirit that laid the foundation of GPIL and the entry of the Agrawal
family into the metals business.

Mr. Dinesh Agrawal

Executive Director Projects

Associated with GPIL for over 9 years, he is an Electrical Engineer and has been associated with the
company’s Ferro alloys and steel rolling units in the past. He is currently overseeing the setting up of the
captive power plant.
 Mr. Siddharth Agrawal
Executive Director - Operations

Mr. Siddarth Agrawal, son of Mr. B.L. Agrawal, is the Executive director of the Company and looking after
the project implementation, procurement of raw material, Plant maintenance, Production activities and
marketing of finished goods of the Company. He has hands-on experience in the Steel Industry with expertise
in Sponge Iron, Steel Melting and Power generation. His rich experience has stood him at comparable level &
put him to up scales on growth ladder.

Mr. Dinesh Gandhi

Director Finance

A Chartered Accountant and Company Secretary by qualification, he brings to the table his two decades of
experience in the areas of accounts, finance, project planning and financing. A dynamic financial analyst, his
competence strategically directs the company.

Shri Vinod Pillai

Director

Shri Vinod Pillai, 41, is a commerce graduate with high energy and enthusiasm. He serves on the Board of
M/s Hira Cement Limited. He has been associated with Hira Group of Industries since 1989. He has rich
experience in Sales, Administration, Liaisoning, Logistics, and has played a vital role in commissioning of
new projects of Hira Group of Industries.
 Mr. Shashi Kumar
Independent Director

Shri Shashi Kumar, aged 61 years, having about 38 years of rich experience in various fields, is a B.Sc.
(Hons.) graduated in Mining Engineering form Indian School of Mines, Dhanbad and obtained his 2nd class
Mine Managers Certificate of competency (in 1969) and 1st class Mine class Mine Managers Certificate of
Competency (in 1970).

Mr. Biswajit Choudhari

Independent Director

Shri Biswajit Choudhari, B.Tec ( Hons), FICWA, aged 65 years, has over 44 years of experience in
Engineering, Banking, Finance and Management. Shri Biswajit Choudhari graduated as a Mechanical
Engineer from IIT, Kharagpur in 1963 is also a Fellow Member of ICWAI and Indian institute of Banking and
Finance.

He acted as Director and Member of various Boards and Councils .He is currently an independent director on
the Board of Bihar Caustic & Chemicals Limited, Orind Exports Limited, and Bengal Sunny Rock Estate
Housing Development Company Limited.

Mr. B. N. Ojha
Independent Director

Shri B.N. Ojha aged 64 years, is Bachelor of Electrical Engineering from BIT Sindari. He served NTPC in
various capacities till 2003. He is presently on the Board of various reputed companies like Nuclear Power
Corporation, (Govt. of India Undertaking), Regional Electricity Boards, Northern Coal Fields Limited and
Damodar Valley Corporation and he is holding Chairmanship in Bhilai Electric Supply Limited and NSPCL.
Presently he is also a member of the Export Committee, Department of Atomic Energy, Govt. of India.
 Mr. N. P. Agrawal
Non Executive Director

Shri Narayan Prasad Agrawal, son of late R.R. Agrawal, aged 49 years is a Commerce Graduate. He is also
having vast Industrial Experience of setting up of Ferro Alloys and Power Plants. He serves on the Boards of
Hira Ferro Alloys Limited and Hira Power and Alloys Limited.

Globalization is gathering momentum and so, we are also replicating the best governing practices as
being followed in other parts of the developed countries irrespective of the political, cultural and
historical factors. Although this factors continue to be formidable barriers, our approach is always
proactive and effective in embracing the best corporate governance practices in the world with a vision
to maximize share holders value.

1. Godawari Cement & Clinkers Ltd.

GPIL is setting up a manufacturing facility in the state of Chattisgarh with proposed investment of Rs. 628
crore. Clinker with an annual capacity of 1.00 MTPA, cement with an annual capacity of 2.00 MTPA, captive
Power plant with 50 MW of capacity.

2. Godawari Energy Ltd.

Godawari Energy Limited formerly known as Godawari power Ltd.is a upcoming project of a power plant
with 1200 MW capacity coming up at Raigarh district.

3. R.R. Ispat

As part of forward integration process, your company has acquired 100% equity share capital of M/s
R.R.Ispat Ltd., a company engaged in the rolling of Billets manufactured by your company into wire rods and
further conversation of wire rods into wires. The operation of the subsidiary company for the financial year
2007-08 has been quiet satisfactory. The company has achieved net sales of Rs. 196.50 crore and net profit of
Rs. 3.62 crore during the year under review as required under the provisions of accounting standards.
4. Ardent Steel Ltd, New Delhi.

Ardent Steel Ltd (ASL) proposes to set up a project for producing 0.6 million tones of pellets per annum. ASL
has already acquired a 50 acre plot of land at village and P.O. Phuljhar Via. Sukali Keonjhar district. The land
is located very close to iron ore mine belt near barbil. So that as ASL is able to procure Iron ore fines at a
cheaper rate with lower cost of carriage inward.

5. Hira Steels Limited

Hira Steels Limited was established in 1994. It is a state of– the art fully automatic, high speed wire rod mill
& wire drawing unit with an installed capacity to produce 42500 MT of Wire rods & 20000 MT of wires. The
company is situated at Pot No. 720/1 Rawabhata Industrial Area, Rawabhata, Raipur. The company has
earned very good market for its product and has made it own entity in the market for their product throughout
India. The current capacity of the plant is 1,00,000 MT per annum of Wire Rods & 50,000 MT per annum of
HB Wires.

In line with anticipated increase in

production and consumption of steel in
India, the Company plans to increases the
production capacities to 1 million tones and
has also signed an MOU with State
Government for investment in steel manufacturing & captive power generation facilities. The further capacity
expansion projects shall be taken up, after captive iron ore mines starts production which is expected during
the current year. In the meantime the Company has decided to set a 0.6 million ton iron ore pelletisation plant,
which is under implementation at its existing plant location and also decided to set a 0.6 million ton
pelletisation plant in joint venture in Orissa, which will provide huge opportunities due to availability of iron
ore mines in India. The focus of our Company in immediate future over a period of next two year is to start
the captive iron ore & coal mines and strengthen the position on raw material and also pursue further capacity
expansion plans. The company is also exploring opportunities into merchant power business by setting IPP
based on thermal coal washery reject and have initiated effective steps towards the same. The detailed plan in
this regard shall be announced in due course once the projects are finalized and ready to take off.
Our Company has also taken up various initiatives to emerge out as low cost steel wire producer with captive
iron ore mines, coal mines and power generation facilities, which form part of 60 to 70% of the cost of
production of finished steel. The Company has also made arrangements for captive railway siding which has
already started operation.

2.4 PRODUCT PROFILE

Godawari Power & Ispat Limited

GPIL is an integrated steel plant situated at Siltara, Raipur. It has the following capacities :

Sponge Iron 4,95,000 MTPA

Steel Billets 4,00,000 MTPA
Steel Wires 1,20,000 MTPA
Power 53 MW
Ferro Alloys 16,500 MTPA
Oxygen Gas 1.1 Million CUM per Annum
 CHAPTER 3

METHODOLOGY

3.1 INTRODUCTION

Research is a scientific and systematic search for pertinent information on a specific topic. Research
is an art of scientific investigation. According to Clifford Woody, “Research comprises defining and
redefining problems, formulating hypothesis or suggested solutions, collecting, organizing and evaluating
data, making deductions and reaching conclusions and at last carefully testing the conclusions to determine
whether they fit the formulating hypothesis”.

3.2 RESEARCH DESIGN

Research design aids the researcher in the allocation of limited resources by posing crucial choices in
methodology.

Research design is the plan and structure of investigation so conceived as to obtain answers to research
questions. The plan is the over all program of the research to the final analysis of data.

DESCRIPTIVE RESEARCH DESIGN

The design for this study is descriptive research design. This design was chosen as it
describes accurately the characteristics of a particular system as well as the views held by
individuals about the system. The views and opinions of employees about the system help
to study the suitability of the system as well as the constraints that might restrict its
effectiveness.
3.3 SAMPLING TECHNIQUES

The sampling technique adopted for the purpose of the study is convenience
sampling.

As the name implies a convenience sample means selecting particular units of the
universe to constitute a sample.

SAMPLE SIZE

The sample size of the study is 100. This sample is considered as representative.
The total employees in GPIL are 1408 and near about 1500 workers are on contract
basis.

3.4 DATA COLLECTION

PRIMARY SOURCE:

The primary source of data is through Questionnaire.

SECONDARY SOURCE:

The secondary source of information is based on the various details retrieved from
Journals, Websites and Magazines.

The data for this study has been collected through primary sources. Primary data for this study was
collected with the help of Questionnaires. The extra information was collected through interviews with the
employees at various departments.
3.5 TOOLS OF THE STUDY

3.5.1 Tool used for data collection:

The tool used for collecting the data is through the questionnaire. The main reason
for selecting the questionnaire method for the study is:
• Respondents have adequate time to give well thought out answers.
• The time of the study was also a limiting factor.
• Five pointer scales were use through the Questionnaire.
• Closed-Ended Questionnaire was also used.

3.5.2 AREA OF THE STUDY

The Study (Impact of Performance Appraisal System at GPIL) is conducted at Godawari Power and
Ispat Ltd., Siltara.

CHAPTER – 4
 ANALYSIS AND INTERPRETATION

4.1 ANALYSIS OF THE DATA

Q.1. Performance appraisal preferred by

Table 1
Table showing the
preference of the appraisal Preference of No of Simple
appraisal respondents percentage
Peers 10 10
Subordinates 14 14
Supervisors 76 76

Source: Primary data

Inference
The above table shows that 76% of the respondents prefer supervisors appraisal, 14% of the respondents
prefer subordinates appraisal and remaining 10% of the respondents prefer peers appraisal.
Figure 1

Q.2. Performance appraisal should be based on

Table 2
Table showing the basis of the performance appraisal
 No of Simple
Basis of respondents percentage
performance
appraisal
Quality 12 12
Target 08 08
Both 80 80

Source: Primary data

Inference
The above table shows that 80% of the respondents prefer both the quality and target for their basis of
performance appraisal, 12% of the respondents prefer quality alone and 8% of the respondents prefer target
alone.

Figure 2

Q.3.The frequency of appraisal should be

Table 3
Table showing frequency
Frequency of No of Simple
of the appraisal system
appraisal respondents percentage
Monthly 06 06
Half yearly 40 40
Annual 50 50
360 degree 04 04

Source: Primary data

Inference

From the above table shows that 50% of the respondents prefer annual appraisal, 40% of the
respondents prefer half yearly appraisal, 6% of the respondents prefer monthly appraisal and 4% of the
respondents prefer 360 degree appraisal.

Figure 3

Q.4.Appraiser appraised performance based on

Table 4
Table showing performance appraisal

Performance No of Simple
appraisal respondents percentage
based on
Personality 04 04
traits
Behaviour 06 06
Results 10 10
All the above 80 80

Source: Primary data

Inference
From the above table shows that 80% of the respondents prefer personality traits, behaviour and
results, 10% of the respondents prefer results alone, 6% of the respondents prefer behaviour, 4% of the
respondents prefer personality trait
Figure 4

Q.5.Analysis of performance appraisal preferred

Table 5
 Table showing types of appraisal

Types of No of Simple
appraisal respondents percentage

Subjective 12 12
Objective 12 12
Both 76 76

Source: Primary data

Inference

The above table shows that 76% of the respondents prefer both subjective and objective factors, 12%
of the respondents prefer subjective alone and 12% of the respondents prefer objective alone.

Figure 5

Q.6.During appraisal, the appraiser had daily contacted with

Table 6
Table showing daily contact at the time of appraisal
Daily No of Simple
contact at respondents percentage
the time of
appraisal
SA 06 06
A 48 48
NC 20 20
D 22 22
SD 4 4
Source: Primary data
Inference
The above table that 48% of the respondents agree that they are having daily contact, 22% of the
respondents are disagree , 20% of the respondents having no comment with the daily contact, 6% of the
respondents are strongly agree with the daily contact and 4% of the respondents are strongly disagree with the
daily contact.
Figure 6

Q.7.During appraisal process, feedback allowed to give

Table 7
Table showing feedback given at the time of appraisal
Feedback No of Simple
given at the respondents percentage
time of
appraisal
SA 14 14
A 56 56
NC 20 20
D 08 08
SD 02 02
Source: Primary data
Inference
The above table shows that 56% of the respondents are agree with the feedback given at the time of
appraisal, 20% of the respondents given no comment, 8% of the respondents are disagree with the feedback,
14% of the respondents are strongly agree with the feedback and 2% of the respondents are strongly disagree
with the feedback given at the time of appraisal.
Figure 7

Q.8. Performance appraisal evaluates strengths and weaknesses

Table 8
Table showing appraisal evaluates strength and weaknesses
Appraisal No of Simple
evaluates respondents percentage
strength and
 weaknesses

SA 24 24
A 42 42
NC 24 24
D 06 06
SD 04 04
Source: Primary data

Inference
The above table shows that 42% of the respondents agree with evaluating their strength and weaknesses,
24% of the respondents are strongly agree with their evaluation, 24% of the respondents given no comment
based on their evaluation, 6% of the respondents are disagree with the evaluation and 4% of the respondents
are strongly disagree with the evaluation of strength and weaknesses.
Figure 8

Q.9.The appraiser exactly evaluated the skill gaps within you.

Table 9
Table showing exactly evaluates the skill gaps

Exactly evaluates the No of Simple

skill gaps respondents percentage
SA 10 10
A 56 56
NC 26 26
D 08 08
SD 00 00
Source: Primary data

Inference
The above table shows that 56% of the respondents are agree with evaluation of skill gaps, 26% of the
respondents given no comment, 10% of the respondents are strongly agree with evaluation of skill gaps and
8% of the respondents are disagree with the evaluation of the skill gaps.
 Figure 9

Q.10.Training program provided for effective skill enhancement after appraisal period
Table 10
Table showing is the organization providing effective training
Organization No of Simple
providing respondents percentage
effective
training

SA 24 24
A 32 32
NC 36 36
D 06 06
SD 02 02

Source: Primary data

Inference
The above table shows that 36% of the respondents given no comment regarding effective training, 32% of
the respondents are agree with the effective training, 24% of the respondents are strongly agree with the
effective training, 6% of the respondents are disagree with the effective training and 2% of the respondents
are strongly disagree with the effective training.
Figure 10

Q.11. Performance appraisal helps in personal growth

Table 11
Table shows is the appraisal helps in personal growth
 Appraisal
helps in No of Simple
personal respondents percentage
growth
SA 24 24
A 46 46
NC 26 26
D 4 4
SD 0 0

Source: Primary data

Inference
The table shows that 46% of the respondents are agree with their personal growth, 26% of the
respondent’s given no comment, 24% of the respondents are strongly agree with their personal growth and 4%
of the respondents are disagree with their personal growth.

Figure 11

Q.12.The appraisal system helps in future promotion prospects.

Table 12

Table shows appraisal helps in promotion aspects

Appraisal helps in No of Simple

promotion aspects respondents percentage
SA 30 30
A 54 54
NC 10 10
D 06 06
SD 00 00

Source: Primary data

Inference
The table shows that 54% of the respondents are agree with the promotion aspects, 30% of the
respondents are strongly agree, 10% of the respondents given no comment and 6% of the respondents are
disagree with the promotion aspects.
Figure 12

Q.13. Recommend job rotation for development

Table 13
Table shows recommendation for job rotation

Recommendation No of Simple
for job rotation respondents percentage
Yes 80 80
No 20 20

Source: Primary data

Inference

The above table shows that 80% of the respondents recommended for their job rotation and 20% of the
respondents are not recommended the job rotation for their development.

Chart 13

Q.14. Recommend job enlargement for development

Table 14
Table shows recommendation for job enlargement
 Recommendation No of Simple
For job respondents percentage
enlargement
Yes 90 90
No 10 10

Source: Primary data

Inference

The above table shows that 90% of the respondents recommended for their job enlargement and 10% of
the respondents are not recommended the job enlargement for their development.

Figure 14

Q.15.Ideas to recommend for development

Table 15

Table shows ideas to recommend for their development

Ideas to recommend for No of Simple

their development respondents percentage
Yes 20 20
No 80 80

Source: Primary data

Inference
 The above table shows that 20% of the respondents recommended their ideas for their development
and 80% of the respondents are not recommended their ideas for their development.

Figure 15

Q.16. At the time of appraisal documentation review, face to face interaction with appraiser

Table 16
Table shows face to face interaction with the supervisor

Face to face
interaction No of Simple
responde percenta
with supervisor nts ge
Yes 70 70
No 30 30

Source: Primary data

Inference

The above table shows that 70% of the respondents are agree with face to face interaction with the
supervisor and 30% of the respondents are not agree with the face to face interaction with the supervisors.

Figure 16

Q.17.Were opportunities given to improve performance

Table 17
Table shows opportunities to improve performance
Opportunities to No of Simple
improve respondents percentage
 performance

Yes 86 86

No 14 14
Source: Primary data

Inference
The above table shows that 86% of the respondents are agree with their opportunities given by the
organization and 14% of the respondents are not agree with the opportunities given by the organization.

Figure 17
Opportunities to improve performance

Q.18. Does the performance appraisal review actually change attitude / behaviour

Table 18
Table shows appraisal changes your attitude/behaviour

Appraisal changes your No of Simple

Attitude /Behaviour respondents percentage
Yes 70 70

No 30 30

Source: Primary data

Inference
The above table shows that 70% of the respondents are agree with the changes in attitude and
behaviour ant the remaining 30% of the respondents are disagree with the changes in attitude/behaviour
during appraisal period.
 Figure 18

Q.19. Based on the performance ratings, is there any increase in the salary

Table 19
Table shows increase of salary by performance ratings

Performance ratings increase No of Simple

your salary respondents percentage
Yes 78 78

No 22 22

Source: Primary data

Inference

The above table shows that 78% of the respondents are satisfied with the increase of salary through
performance ratings and the remaining 22% of the respondents are dissatisfied.
 Figure 19

Q.20. Satisfied with the present appraisal system

Table 20
Table shows happy with present appraisal system

Happy with present No of Simple

appraisal respondents percentage

Yes 76 76

No 24 24

Source: Primary data

Inference
The above table shows that 76% of the respondents are happy with the present appraisal system and 24%
of the respondents are unhappy with the present appraisal system.

Figure 20

CHAPTER 5

5.1 FINDINGS OF THE STUDY

1) 76% of the respondents prefer supervisors for their appraisal and the low level 10% prefer peers for
their appraisal.
2) 80% of the respondents prefer both the quality and target for their basis of performance appraisal and
low level 8% prefer target for their basis of performance appraisal.
3) 50% of the respondents prefer the frequency of appraisal as annual and the low level 4% prefer 360
degree.
4) 80% of the respondents prefer that performance appraisal should be based on all (personality traits,
behaviour and results) and the low level 4% prefer personality traits.
5) 76% of the respondents prefer both (subjective and objective) the appraisal and the low level 12%
prefer subjective and objective appraisal.
6) 48% of the respondents are agree with daily contact at the time of appraisal and the low level 4%
were strongly disagree.
7) 56% of the respondents are agree with feedback given at the time of appraisal and the low level 2%
were strongly disagree.
8) 42% of the respondents are agree with evaluation of the strength and weaknesses at the time of
appraisal and the low level 4% were strongly disagree.
9) 56% of the respondents are agree with evaluation of skill gaps and the low level 8% were disagree
with this.
10) 36% of the respondents having no comment based on effective training after appraisal review and the
low level 2% were strongly disagree.
11) 46% of the respondents are agree with the personal growth of the individuals and the low level 4%
were disagree.
12) 54% of the respondents are agree with the promotional aspects through appraisal and the low level 6%
were disagree.
13) 80% of the respondents are recommended for job rotation.
14) 90% of the respondents are recommended for job enlargement.
15) Only 20% of the respondents recommended some ideas for their development.
16) 70% of the respondents are agreeing with the face to face interaction with the supervisor.
17) 86% of the respondents are agreeing with opportunities to improve their performance after appraisal.
18) 70% of the respondents are agreeing with the changes in attitude/behaviour after appraisal.
19) 78% of the respondents are agreeing with increase in their salary through appraisal.
20) 76% of the respondents are happy with the present appraisal system.
5.2 SUGGESTIONS

5.2.1 SUGGESTIONS BY THE EMPLOYEES

The organization should conduct the following programmes for their development which are

• Effective training module.

• With in training using the local language and using more graphical interface.
• Recommendation for practical training.
• Seminars/Trainings in some of the functional areas like:
Technical aspects
Business overview
Latest technology

5.2.2 SUGGESTIONS BY THE RESEARCHER

• The company should conduct effective training after the performance appraisal for their
employees to improve their performance and it should be discussed with the employees at the
time of performance appraisal review.

• The company should give combination of both (subjective and objective) appraisal and it should
be of half yearly.
 • The appraiser should keep on contact with the employees and motivate them for their growth
and also to achieve the organizational goals.

• When an employee is newly joined in an organisation, he/she should be given proper

information about performance appraisal system and its impact towards his/her job.

• Once an employee is evaluated, he/she has to be informed about their strength and weaknesses.
An employee should aware of the above, he/she will improve their strengths and weaknesses
and also it helps to increase the productivity of the organisation.

5.3 CONCLUSION

In this study, Performance Appraisal System followed at Godawri Power and Ispat Ltd. was evaluated
and found to be good. This project work also reveals the gaps in the existing system. By providing suitable
training and development programmes, the concern organisation can improve the existing performance
appraisal system.

Overall, this project work helps researcher to understand every aspects of performance appraisal
system at GODAWARI POWER AND ISPAT LTD.
 BIBLIOGRAPHY

Books:

• VSP Rao – Human Resource Management, Anurag Jain for excel books, 2005 ninth
edition.
• Debra L. Nelson and Thomson, Organization Behaviour,
• C. R. Kothari - Research Methodology Methods and Techniques, New age international
publishing, 2004 second edition.

Web Reference:

 www.hiragroupindia.com
 www.gpilindia.com
 www.google.com

APPENDIX

“IMPACT OF PERFORMANCE APPRAISAL SYSTEM ON GPIL”

Name of Employee : ___________________

Sex : a) Male b) Female
Your age group?
a) 19 - 23 b) 24 - 28 c) 29 - 33 d) 34 – 38 e) above 38
Designation : ___________________
Department : ___________________
Date of joining : ___________________
Questions:
1. Whose appraisal do you prefer?
a) Peers
b) Subordinates
c) Superiors

2. Performance appraisal should be based on your

a) Quality
b) Target
c) Both

3. The frequency of appraisal should be

a) Monthly
b) Half yearly
c) Annual
d) 360 degree

4. Appraiser appraised your performance based on

a) Personality traits
b) Behavior
c) Results
d) All the above

5. Which type of performance appraisal do you prefer?

a) Subjective performance appraisal
b) Objective performance appraisal
c) Combination of both

The following questions are graded on a 5 point scale:

1 – Strongly agree
2 – Agree
 3 – No comment
4 – Disagree
5 – Strongly disagree
1 2 3 4 5
6. During appraisal, the appraiser had daily contact with you.

7. During appraisal process, you are allowed to give feedback.

8. Do you think the performance appraisal evaluates your strengths

and weaknesses?

9. The appraiser exactly evaluated the skill gaps within you.

10. The organization is providing effective training program for skill

enhancement after your appraisal period.
11. Performance appraisal helps in your personal growth.

12. The appraisal system helps in your future promotion prospects.

The following questions are graded on Y/N scale:

13. Do you recommend job rotation for your development? Yes/No

14. Do you recommend job enlargement for your development? Yes/No

15. Do you have any ideas to recommend for your development? Yes/No
If yes, Please specify___________________________.

16. At the time of appraisal documentation review, did you have face to Yes/No
face interaction with your appraiser?

17. Were opportunities given to you to improve your performance? Yes/No

18. Does the performance appraisal review actually change your Yes/No
 attitude / behaviour?

19. Based on the performance ratings, is there any increase in the salary? Yes/No

20. Are you happy with the present appraisal system? Yes/No

Do you have any comments or suggestions, please specify………………………………………

…………………………………………………………………………………………………….

Signature of Employee
Date:
Comments of Immediate Superior:

Signature