A Study of Performance Appraisal System For Executives

Summer Internship Project Report
On
“A study of Performance Appraisal System for
executives”
At Hindustan Aeronautics Limited, Bangalore.
Presented to
INDIAN BUSINESS ACADEMY
On
June 4 , 2007.
In Partial fulfillment of the requirements for the Managerial training

course in the Post Graduate Programme in Management 06-08
By
Ms. Puspanjali Das
FPB 0608/039
A study of the performance appraisal system for executives. 1

CEO’s Certificate
This is to certify that Ms. Puspanjali Das is a bonafide student of
Indian Business Academy, Bangalore. She is presently pursuing a Post
Graduate Programme in Management.
He has submitted his project report titled “A study of performance

appraisal system for executives” , in partial fulfillment of the requirement
for the summer internship project during the Post Graduate Programme in
Management.
This report has not been previously submitted as part of another degree or
Diploma of any other Business School or University.
Mr. Manish Jain, CEO, Indian Business Academy

Lakshmipura, Thataguni Post
Kanakpura Main Road,
Bangalore – 560 062
INDIA
Tel: +91-80-28435931/32/33/34
Fax: +91-80-28435935

Dean’s Certificate

appraisal system for executives”, in partial fulfillment of the requirement
for the summer internship project during the Post Graduate Programme in
Management.
Prof. Subash Sharma, Dean, Indian Business Academy

INDIA
Tel: +91-80-28435931/32/33/34
Fax: +91-80-28435935

Mentor’s Certificate

appraisal system for executives”, under my guidance, in partial fulfillment
of the requirement for the summer internship project during the Post
Prof. Parul Goil, Mentor, Indian Business Academy

INDIA
Tel: +91-80-28435931/32/33/34
Fax: +91-80-28435935

Student Declaration
I, Ms. Puspanjali Das, the undersigned, a student of Indian Business
Academy, Bangalore, declare that this project report titled “A study of
performance appraisal system for executives”, is submitted in partial
fulfillment of the requirement for the summer internship project during the
Post Graduate Programme in Management, a prestigious Post Graduate
Programme awarded by Indian Business Academy, Bangalore.
This is my original work and has not been previously submitted as a part of
any other degree or diploma of another Business school or University.
The findings and conclusions of this report are based on my personal study
and experience, during the tenure of my summer internship.
Ms. Puspanjali Das, PGPM 2006-08 (FPB0608/ 039)

INDIA
Tel: +91-80-28435931/32/33/34
Fax: +91-80-28435935

About the learner:
I am Puspanjali Das. I have done my graduation in Economics from Khallikote College,
Berhampur (Orissa). Currently I am pursuing my masters (Masters in Business
Administration) from Indian Business Academy, Bangalore (Karnataka). My
specialization would include HR & Marketing. I have one year of work experience as a
“Faculty cum counselor” in an upgrowing management coaching institute. This was a
wonderful opportunity for me to learn methods of convincing and motivating people.
Preface:
Hindustan Aeronautics Limited (HAL) came into existence on 1st October 1964. The
Company was formed by the merger of Hindustan Aircraft Limited with Aeronautics
India Limited and Aircraft Manufacturing Depot, Kanpur. The Company traces its roots
to the pioneering efforts of an industrialist with extraordinary vision, the late Seth
Walchand Hirachand. Today, HAL has 16 Production Units and 9 Research and Design
Centres in 7 locations in India. My project included a thorough study of the performance
appraisal system of the company and give them feedbacks about the system. Mentor and
guide for this project was Mr. A.K Nanda, who was the chief manager P& A in the
company.
This report will be resourceful to those who intend to know the performance appraisal
system in practical. This project also emphasizes on the format followed in the company.
As this company followed a quarterly task setting and evaluation on a quarterly basis, so
it gives a detail analysis of the long procedure.
Study methodology:
Steps involved in this study:
1. Gathering of the required information for the analysis purpose.
2. Verifying the collected format with my mentor.
3. Clarifying my doubts regarding the system.
4. Interacting with some of the employees about their views about the system.
5. Giving detail of the feedback given my employees of the company to my mentor.
6. Identifying the loopholes and discussing them with my mentor.
Limitations:
1. Within a shorter period of time it is very difficult to study in depth about such a
vast topic.
2. Certain matters are confidential which is not revealed by the company.
3. Information may not be 100% accurate.
4. Analysis & comparison made by a student not a professional expert.

Acknowledgement
Completing a task is never one person’s effort. It is often the result of invaluable
contribution of a number of individuals in a direct or indirect way in shaping success and
achieving it.
I take this opportunity to thank various people who have made me sail through my
internship programme successfully with a project at Hindustan Aeronautics Limited,
Bangalore;
Mr. Manish Jain, Director, Indian Business Academy, Bangalore for providing me the
opportunity to have such a good experience of an internship programme.
Dr. Subhash Sharma, Dean, Indian Business Academy, Bangalore for extending support
at the beginning of the project.
Prof. Parul Goil, Internal Mentor, Indian Business Academy, Bangalore, for extending
support during the entire internship programme.
Prof. Arvind Dholakia, Asst. Dean cum faculty (HR), Indian Business Academy,
Bangalore, for his suggestions and whenever needed.
Mr. B.K. Mohanty, General manager Mkt, Hindustan Aeronautics Limited, Bangalore,
who made it possible for me to pursue my internship at Hindustan Aeronautics Limited,
Bangalore.
Mr. A.K Nanda, Chief Officer P&A, Hindustan Aeronautics Bangalore, who guided me
in a very cooperative way and provided all relevant information as far as possible.
Mr. P.K. Sahoo, Chief Manager P&A, Hindustan Aeronautics Limited, Bangalore, who
took keen intrest in the progress of the project and proved to be a excellent mentor for
me.

Executive summary:
Hindustan Aeronautics Limited (HAL) indisputably is an Asian aerospace giant, with 16
production units and nine research and design centres spread across seven locations in
India. It has its headquarters in Bangalore.
HAL is mainly invovlved in designs, manufactures, repairs, and over-hauls aircrafts,
helicopters, aero-engines, avionics, instruments, and accessories. The company also
designs, manufactures, and maintains aerospace defense equipment. In addition, it
develops software for aerospace application and provides design consultancy services.
The company also conducts research and development programs for the military and civil
aviation sectors.
Since its inception, 1964, it has pioneering efforts in strategic Human Resource
Development (HRD) goal of the company.
The performance appraisal system emphasizes on the value adding services rather on
daily routine activities. Giving slow performers necessary training and high performers
growth opportunity has been a continuous procedure all these years. The other HRD Plan
also includes time-to-time OD Interventions to address specific requirement of the
Company.
The appraisal system is designed for all levels and grades. The entire format of the
performance appraisal system has been divided into 9 parts. It has a two tier system with
a initiating authority and reviewing authority. The appraisal system is a quarterly task
setting and assessment procedure. The members of the initiating and reviewing authority
are scrutinized on a regular basis on the appraisal system performed by them. Feedbacks
are taken from the employees about their views about the appraisal system and necessary
actions are taken if relevant. It has both a qualitative and quantitative assessment.
The appraisal system is divided into four levels and ten grades.
The IA would evaluate the performance of the appraisee, by the 7th of the 1st month of the
subsequent quarter, after joint discussion with the appraisee. The tasks set should, as far
as possible, be quantitative or measurable, either in terms of quantity or time limits. In

case the marks awarded by the RA vary from that awarded by the IA, the RA will
indicate justifications for such variations
There is a method used for the purpose of self-appraisal. It is aimed at providing officers
an opportunity to assess their performance against mutually agreed tasks. Skills required
to be possessed by an officer vary as he moves from one level to the next. To remove
ambiguity and difference in interpretation and understanding each state has been defined
in the help matrix. The marks awarded for the defined traits will have a relative
weightage and importance. There is a pre-defined scale of gradation. The traits which
taken into consideration while assessment are educational qualifications of the appraisee,
variety and richness of experience, job knowledge, effectiveness, personal qualities and
his performance on various assignments.
There is a performance review board which takes into consideration the assessment of the
IA & RA. The members of the PRB are generally from the corporate level. There is also
an appraisal done for officers on probation. Appraisals of officers in vigilance department
and systems audit department is also carried on.
There is a feedback system which is intimated in written to the employees if their score is
below 50. There is a clear description of the traits of attributes description and the
maximum marks that can be awarded for that particular trait.
Completed performance appraisal record is maintained by the particular divisions.
The short comings of the performance appraisal systems is the long quarterly procedure
which makes the entire procedure a long and tedious job. The attributes and traits are
different for different grade employees and moreover the qualitatively based description
makes the procedure a tough task.

Index: Page no.
Executive Summary 9
i) Introduction 12-15
ii) Focus on human resource policy 15-18
I) Manpower planning
II) Training & development
III) Performance appraisal
IV) Reward system
V) Scheme for learning & certification for executives
iii) Financial background of the company 18
Performance appraisal system
1. Salient features of the performance appraisal system 19
2. Filling up of the formats 20
3. Quarterly tasks and achievements 20-21
4. Self appraisal 21-22
5. Levels of initiating authority / reviewing authority 22
6. Assessment of traits 22-23
7. Pen picture (Qualitative assessment) 23-24
8. General assessment & review categorization 24
9. Training / developmental needs 25
10. Performance review board 25-26
11. Remarks by the higher authorities 26
12. Performance appraisal of the officers on probation 26-27
13. Assessment period 27
14. Feedback system 27-29
15. Routing of the report 29-30
16. Appraisals on officers in vigilance department 30-31
17. Appraisals on the officers of systems audit department 31

18. Appraisals on heads of finance, IMM and
personal & administrative in the
complex / division 32
19. Performance appraisal of officers on
deputation / retaining lien 32
20. Maintenance of performance appraisal records 32-33
21. Check by HRD cell 33
22. Format for filling up details of officers in
grades I to X except V & VI 33
23. Grade I & II format 34-35
24. Grade III & IV format 35-37
25. Grade V & VI format 37-40
26. Grade VII & VIII format 40-41
27. Grade IX & X format 42-43
28. Quarterly task setting and assessment sheet 43-44
29. Help matrix
Grade I & II 45-46
Grade III & IV 46-48
Grade V & VI 48-51
Grade VII & VIII 51-54
Grade IX & X 55-58
30. Short comings in the performance appraisal
System. 59
31. Conclusion 59-60
32. Exhibit 61-74
Bibliography

Hindustan Aeronautics Limited (HAL)
Introduction:
Hindustan Aeronautics Limited (HAL) came into existence on 1st October 1964. The
Company was formed by the merger of Hindustan Aircraft Limited with Aeronautics
India Limited and Aircraft Manufacturing Depot, Kanpur.
The Company traces its roots to the pioneering efforts of an industrialist with
extraordinary vision, the late Seth Walchand Hirachand, who set up Hindustan Aircraft
Limited at Bangalore in association with the erstwhile princely State of Mysore in
December 1940. The Government of India became a shareholder in March 1941 and took
over the Management in 1942.
Headquartered in Bangalore, Hindustan Aeronautics Limited (HAL) is mainly involved

in manufacturing aircraft, aerospace, navigation and communication equipment. It has the
distinction of building the first military aircraft constructed in South Asia and is currently
involved in the design, fabrication and assembly of aircraft, jet engines, helicopters and
their components and spares.
HAL's facilities are located throughout India including Nasik, Korwa, Kanpur, Koraput,
Lucknow and Hyderabad.
Adopting the slogan "Asia's Premier Aerospace Complex," India's aerospace and defence
major, Hindustan Aeronautics Limited (HAL), continues to take large strides in the sector
with every passing year. In size HAL is indisputably an Asian aerospace giant, with 16
production units and nine research and design centres spread across seven locations in
India.
Today, HAL has 16 Production Units and 9 Research and Design Centres in 7 locations
in India. The Company has an impressive product track record - 12 types of aircraft

manufactured with in-house R & D and 14 types produced under license. HAL has
manufactured 3550 aircraft (which includes 11 types designed indigenously), 3600
engines and overhauled over 8150 aircraft and 27300 engines.
HAL's supplies / services are mainly to Indian Defence Services, Coast Guards and
Border Security Forces. Transport Aircraft and Helicopters have also been supplied to
Airlines as well as State Governments of India. The Company has also achieved a
foothold in export in more than 30 countries, having demonstrated its quality and price
competitiveness.
HAL has been successful in numerous R & D programs developed for both Defence and
Civil Aviation sectors. HAL has made substantial progress in its current projects :
• Dhruv, which is Advanced Light Helicopter (ALH)
• Tejas - Light Combat Aircraft (LCA)
• Intermediate Jet Trainer (IJT)
• Various military and civil upgrades.
HAL has played a significant role for India's space programs by participating in the
manufacture of structures for Satellite Launch Vehicles like
• PSLV (Polar Satellite Launch Vehicle)
• GSLV (Geo Stationary Launch Vehicle)
• IRS (Indian Remote Satellite)
• INSAT (Indian National Satellite)
There are three joint venture companies with HAL :

• BAeHAL Software Limited
• Indo-Russian Aviation Limited (IRAL)
• Snecma HAL Aerospace Pvt Ltd

Apart from these three, other major diversification projects are Industrial Marine Gas
Turbine and Airport Services. Several Co-production and Joint Ventures with
international participation are under consideration.
HAL has won several International & National Awards for achievements in R&D,
Technology, Managerial Performance, Exports, Energy Conservation, Quality and
Fulfillment of Social Responsibilities. HAL was awarded the “INTERNATIONAL
GOLD MEDAL AWARD” for Corporate Achievement in Quality and Efficiency at
the International Summit (Global Rating Leaders 2003), London, UK by M/s Global
Rating, UK in conjunction with the International information and management centre
(IIMC).
HAL was presented the International - “ ARCH OF EUROPE ” Award in Gold Category
in recognition for its commitment to Quality, Leadership, Technology and Innovation At
the National level, HAL won the "GOLD TROPHY" for excellence in Public Sector
Management, instituted by the Standing Conference of Public Enterprises (SCOPE).
VISION OF THE COMPANY

"To make HAL a dynamic, vibrant, value-based learning organisation with human
resources exceptionally skilled, highly motivated and committed to meet the current and
future challenges. This will be driven by core values of the Company fully embedded in
the culture of the Organisation"
MISSION OF THE COMPANY

Enable all those working for HAL to give their best to ensure their all-round growth as
well as that of the Organization
OBJECTIVES
• To ensure availability of Total Quality People to meet the Organizational Goals
and Objectives.

• To have a continuous improvement in Knowledge, Skill and Competence
(Managerial, Behavioral and Technical)
• To promote a Culture of Achievement and Excellence with emphasis on
Integrity, Credibility and Quality
• To maintain a motivated workforce through empowerment of Individual and
Team- building
• To enhance Organizational Learning
• To play a pivotal role directly and significantly to enhance Productivity,
Profitability and improve the Quality of Work Life
STRATEGY
• To be in total alignment with Corporate Strategy
• Maintain Human Resource at optimum level to meet the objectives and goals of
the Company
• Be competent in Mapping, Analysis and Upgradation of Knowledge and Skills
including Training, Re-training, Multi-skilling etc
• Cultivate Leadership with Shared Vision at various levels in the Organization
• Focus on Development of Core Competence in High-Tech areas
• Build Cross-functional Teams
• Create awareness of Mission, Values and Organizational Goals through out the
Company
• Introduce / Implement personnel policies based on performance that would ensure
growth, Rewards, Recognition, Motivation
FOCUS OF HUMAN RESOURCE POLICY

• Competence Building
• Commitment
• Motivation
• Employee Relations

In the backdrop of the above, the focus of Human Resource Development initiatives at
HAL emphasize the following:
I ) MAN POWER PLANNING

• Out sourcing of low tech and medium tech jobs
• Fresh induction only in critical / highly specialised areas based on requirements
due to increase in work load and super annuation profile (Annexure-II). In the
Workmen Cadre, induction will be restricted to Direct Workmen only
• Improving the existing qualification profile by focusing on induction of
professionally qualified personnel and diploma holders
Hence focus of recruitment is to recruit people with a combination of knowledge, skill,
experience and attitude in line with the organisational requirement through appropriate
manpower plan both short term (contract appointments) and long term recruitment
programme.
II ) TRAINING AND DEVELOPMENT

Training is one of the most important tools for developing human resource. Hence,
identification of training competency profile in terms of Vision, Mission of the Company
is the strategic point of the training and development strategy of the Company. The
following objectives have been set in this regard:-
• To provide training to all employees at regular intervals in a plan period of 5
years.
• Training to become an integral component of individual professional evolution
by:
o updating knowledge to avoid obsolescence
o enhancing professional creativity
o enabling employees to shoulder higher responsibility
o creating a business trend and strategic thinking to take up new business
challenges (creation of Centre of Excellence, etc)

The goals of training will be to progressively achieve 7 days training per employee per
year with a budget of 2% of annual Wage Bill.
Keeping in view the organisational requirement and goals and objectives of training, the
following have been identified as the key focus areas of training:
• Technology
• Tooling
• Quality
• Information Technology
Further, to facilitate the development of soft skills (change of mind-set, managerial
development etc.) training would be imparted on a continuous basis. Tie-ups with Centres
of Excellence like IITs, NDC, FIAS France etc. for imparting training would be given
prime importance.
III ) PERFORMANCE APPRAISAL :

Appraising people for meeting the Company's goal would be the prime focus of
performance management. The new Performance Appraisal System based on work
planning and commitment (mutually agreed tasks) , self-review and performance
analysis, performance review and feedback would ensure that the focus would be on
value adding activities rather than on routine activities which bear no relationship with
the Organisation's goals and objectives.
Identification of low performers and resultant corrective action through out the Company
would be given priority. Similarly, faster career growth opportunity would be provided to
high performers.
IV ) REWARD SYSTEM
The focus of the reward system in the Company is to promote team work and cultivate a
sense of achievement and excellence in the Organisation. This is in addition to the
existing scheme of reward for an individual who innovatively and creatively makes
exemplary contributions in the key thrust areas of the Company that would lead to its

achieving overall excellence. Coupled with the above, schemes like "Inter Divisional
Competition" and "Profit Sharing Scheme" have been institutionalised in the Company
for team reward.
V ) SCHEME FOR LEARNING AND CERTIFICATION FOR EXECUTIVES

A "Learning Organisation" is essential for survival in the present era of Liberalisation,
Privatisation and Globalisation. Therefore, "Knowledge" is the only core competence of
Organisations for coping with changes.
In line with the above philosophy, among other initiatives like institutionalizing Learning
Centres in Divisions etc., HAL has also introduced the scheme for Learning and
Certification for executives as a starting point for building individual knowledge. The
scheme inter-alia provides an opportunity for the Junior and Middle Management Cadre
Executives to broaden their perspective by not only learning about all functions and
procedures in their respective disciplines but also in related areas and overall knowledge
about the Organization and its environment. So far, approximately, 45% (both for "O" &
"A" level) of executives have been certified (Annexure IV). It is proposed to expand the
coverage of this scheme further, if required, by linking the scheme to some kind of
reward mechanism.
Lastly, the HRD Plan will also include time-to-time OD Interventions to address specific
requirement of the Company.
FINANCIAL BACKGROUND OF THE COMPANY:

Hindustan Aeronautics Limited (HAL) has cruised past the Rs.5,000-crore mark for the
first time with a sales turnover of Rs.5,341.50 crores ($1.20 billion) during the Financial
Year 2005-06, The Value of Production has also gone up by 18.69% to Rs. 5,916.62
crores, while the Profit of the Company (Profit Before Tax) soared to Rs.1,126.29 crores,
which is an increase of 48.54% over the previous year's performance. Contracts worth
Rs. 17,800 crores (4 billion USD) were concluded during the year.

1. Some of the salient features of the performance appraisal system are
as under:-
i) Two tier system (IA & RA)
ii) Quarterly task setting and evaluation on a quarterly basis.
iii) Traits based on the responsibilities associated with each level.
iv) Self- appraisal by the officers at all levels.
v) Qualitative assessment, management review categorisation & identification of
training and developmental needs, both by IA & RA.
Level Grades
Level- I I & II
Level- II III & IV
Level- III V & VI
Level- IV VII & VIII
Level- V IX & X
1.1. The performance appraisal system was amended in 2000-01 year hence, assessment
of performance for the 2000-01 will be based on the evaluation for the remaining three
quarters viz. quarters ending 30th September 2000, 31st December 2000 and 31st march
2001. Required exercise of task setting for the 2nd quarter of the year (1st July to 30th
September 2000) would be done immediately between each appraisee and the concerned
initiating authority. For this purpose, copies of the quarterly task setting and assessment
sheets may be used till such time the formats are got printed.
1.2. Divisions/ officers have taken all necessary steps to implement the revised procedure
for the performance appraisal immediately.

2. Filling up of the formats:
Part Contents To be filled by
Cover page Bio-data of the appraisee Appraisee
Part- A Quarterly task setting and assessment. Appraisee & IA
Part- B Self appraisal Appraisee
Comments & integrity IA & RA
Part- C Assessment of traits IA & RA

Part- D Qualitative assessment of the appraisee (pen picture) IA & RA
Part- E General assessment & management review categorization. IA & RA
Part- F Training & developmental needs IA & RA
Part- G Evaluation by performance review board PRB
Remarks of higher authority GM/ MD/ FD/

CH
Part- H Illustrative list of areas for training -
Part- I Check list HRD cell
3. Quarterly tasks & achievements:
3.1. The performance appraisal system envisages setting up of quarterly tasks between
the appraisee & IA. The set tasks would be recorded on the quarterly task setting and
assessment sheets. At the time of setting the tasks, the IA may also consult the RA also.
3.2. Quarters for the purpose of PAR would be as follows:
Quarter Period
I 1st April to 30th June

II 1st July to 30th September
III 1st October to 31st December
IV 1st January to 31st March
3.3. Task setting for each quarter would be done, jointly by the appraisee and the IA, by
the 7th of the first month of each quarter. The maximum marks of 100 would be
distributed among all the tasks, based on their relative weightage/ importance. Separate
task setting and assessment sheets are to be used for each quarter and the same would be
signed both by the appraisee and the IA. The task setting sheets would be prepared in
duplicate and one copy will be with the appraisee and the other with the IA.
3.4. The tasks set should, as far as possible, be quantitative or measurable, either in terms
of quantity or time limits.
3.5. The IA would evaluate the performance of the appraisee, by the 7th of the 1st month
of the subsequent quarter, after joint discussion with the appraisee, against the set tasks
and will award marks for each task, keeping in view the maximum marks decided for
each task at the beginning of the quarter.
3.6. Completed task setting and assessment sheet of each quarter would be retained by the
IA with him and the same would be attached by him with the annual/ probationary PAR
at the end of the assessment year/ period.
4. Self Appraisal:
4.1. All officers should assess themselves in Part B (B.1, B.2 & B.3) of the appraisal
format. Self-appraisal is aimed at providing officers an opportunity to assess their
performance against mutually agreed tasks. Self-appraisal should be brief and to the
point.

4.2. Comments on the self-appraisal by the IA & RA are to be made in the space
provided (parts B.4 & B.5). self- appraisal by the officers should also be taken into
account by the IA and RA, while making the assessment in Part- C of the format.
5. Levels of Initiating Authority / Reviewing Authority:
5.1. Levels of the IA & RA for officers in various grades would be as follows:
Grade of the Initiating Authority Reviewing Authority
Appraisee
I / II Minimum Grade III or above Minimum Grade V or above
III / IV Minimum Grade V or above Minimum Grade VI or
above
V / VI Minimum Grade VII or above Minimum Grade VIII or
above
VII / VIII Minimum Grade IX or above Minimum Grade X or above
IX / X MD / FD CH
Notes: i) While the levels of the IA & RA, in general, should be as above, if the appraisee
is reporting to officers at lower levels, the IA & RA can be in lower grades also.
ii) In case of the officers who are directly reporting to senior executives in Grade
VII / VIII / IX / X / MD / FD / CH and where there are no immediate officers, the
concerned senior executive will be the IA / RA, except in cases which has been
specifically mentioned.
6. Assessment Of Traits:
6.1. Skills required to be possessed by an officer vary as he moves from one level to the
next. Keeping this aspect in view, separate set of traits against each officers are to be
assessed have been devised. Marks have been allotted for each trait both by the IA & RA.

6.2. For the first trait (Performance), marks awarded by the IA will be the equivalent %
of the average marks for the year awarded by him in Part- A. For example, if the average
marks awarded by the IA in Part- A for a year is 70 out of 100, marks against
(Performance) in Part- C.1 for an officer in grade I / II will be 56 ( i.e. 80% of 70). In
case the marks awarded by the RA vary from that awarded by the IA, the RA will
indicate justifications for such variations in Part C.1.1 of the format. For the remaining
traits, the IA & RA have to award marks individually out of the maximum marks
indicated against each trait.
6.3 To remove ambiguity and difference in interpretation and understanding each state
has been defined in Part C.1 of the format. Further, the illustrative help matrix at
appendix- G could also be used for guidance, in general, for awarding marks against each
other (other than performance)
Scale Of Gradation:
The scale of gradation is as follows:
Total marks 100-90 89-80 79-50 Below 50
Performance Exceptional Above average Average Below average
rating
7. Pen Picture (Qualitative Assessment):
7.1. Both the IA & RA have to give a brief description of the appraisee at Part-D of the
format, as pen picture.
7.2. The pen picture should be written carefully highlighting all aspects of the personality
of the appraisee. By reading the pen picture, one should be in a position to get a clear
picture about the appraisee, his effectiveness and his personal qualities.

The 1A &RA should use this part of the appraisal report to narrate about the traits of the
appraisee that are not covered under specific traits under Part C.1
8. General assessment & management review categorization:
8.1. The IA & RA have to indicate the strengths and areas requiring improvements I
respect of the appraisee, with reference to his performance, at Part-E of the format. This
will enable the PRB to get a balanced picture about the appraisee & would also facilitate
positive HRD intervention.
8.2. Both the IA & RA have to indicate the “Management Review Categorisation” of the
appraisee, which forms the potential assessment area of the Performance Appraisal
system, as follows:
Cat-A: An officer who has a high degree of potential for advancement.
Cat-B: An officer who has potential for limited advancement.
Cat-C: An officer who has no potential for advancement.
8.3. While indicating the Management Review Categorisation, the IA &RA should take
into account the educational qualifications of the appraisee, variety and richness of
experience, job knowledge, effectiveness, personal qualities and his performance on
various assignments.
8.4. This assessment should also be made for officers on probation.

9. Training/Developmental Needs:
9.1. Both the IA & RA should indicate specific areas to which the appraisee should be job
rotated as well as training to be given to prepare him for future advancements. An
illustrative list of areas of Training & Development is at Part-H of the PAR form.
10. Performance Review Board:
10.1. Performance review board will be constituted at the divisional / complex / corporate
level (similar to the existing PRCs) for determining the final marks / performance rating
of the appraisee, taking into consideration the assessment made by the IA & RA. The
PRB will consult the IA & RA, where ever necessary, if they are not the members of
PRB.
10.2. Chairman and members of the PRB would be indicated below:

Level Grade Chairman of PRB Members of PRB
I I / II Senior most AGM / Other AGMs /
DGM in the division DGMs / HODs in
the division & HRD
representative
II III / IV GM / divisional AGMs / DGMs /
head HODs in the
division & HRD
representative
III V / VI MD / FD GMs of the division
& HRD
representative
IV VII / VIII CH MDs / FDs
V IX / X CH MDs / FDs

10.3. Constitution of the divisional PRBs in respect of officers in grade I / II and III / IV,
as at para 10.2 above, are illustrative only and the divisions can constitute and notify the
PRB, each year, based on the above guidelines.
10.4. In respect of complex offices, MDs will be the chairman of the PRB for officers in
grade I to IV also.
10.5. In respect of officers in grade I to IV of corporate office, Director (Corporate

Planning & Marketing), Director (Finance), Director (Personnel) and General Manager
(P& A) will be the members of the PRB. The senior most Director will be the chairman
of the PRB.
10.6. The marks and performance rating awarded by the PRB would be final.
11. Remarks by the higher authorities:
11.1. GMs / MDs / FDs / CH would indicate their general remarks in Part- G of the
format.
12. Performance appraisal of the officers on probation:
12.1. Two performance appraisals are to be submitted, one at the end of the sixth month
and the other at the end of the eleventh month of the probationary period officers.
Formats to be used and system to be used and system to be followed for filling up of the
formats would be the same as in respect of annual reports.
12.2. Probationary performance appraisal reports would not be put up to the performance
review board. Marks / performance rating awarded by the RA would be final in respect of
these reports. These reports would, however, be put up to the higher authorities for their
remarks in Part- G.

12.3. The RA should ensure that the sixth and eleventh monthly reports are submitted to
the HRD cell within the 7 days of the completion of the sixth and eleventh monthly
report.
12.4. The sixth / eleventh monthly performance appraisals would be the basis of
confirmation of the officers appointed / promoted. The report should therefore indicate
the suitability or otherwise of the officer for confirmation by the competent authority, in
the eleventh monthly report.
13. Assessment period:
13.1. The activity chart on the operation of the performance appraisal system is shown in
Exhibit no. 10.
14. Feedback system:
14.1. All officers who have scored final marks of below 50 and rated as below average
would be intimated in writing about the same, through the concerned division / office, as
follows:
Officers in grade To be intimated by
VII and above Corporate office
V / VI Complex office
I to IV Division / office
This communication would be signed by the head of the P&A department at the corporate
office / complex office / division / office.
14.2. In addition to the above, oral feedback by the appraisers, to the appraisee, on his
performance, should be an ongoing process. It is necessary to encourage progress and

correct mistakes. The appraisee should be encouraged and the areas requiring immediate
attention for improving his performance should be highlighted.
14.3. The initiating authority should inform the appraisee in writing as and when the need
arises.
14.4. Further to the feedback / communication as at paras 14.1 to 14.3 above, the HRD
cell should ensure communication of the areas / traits for improvement, if any, to the
appraisee, after the report is completed by all concerned. Such communication would be
issued as follows:
i) For officers upto and including Grade IV:
The HRD cells of the respective divisions / officers would identify the cases where
feedback is required and would ensure that necessary communications are issued to the
officers, through the IA / RA.
ii) For officers in grades V & VI:
The HRD cell of the complex office will identify the cases where feedback is required to
be given and would communicate the same to the officers concerned through the
concerned division / office.
iii) For officers in grade VII & above:
Corporate office will identify the cases where feedback is required to be given and would
communicate the same to the officers concerned, through the concerned division / office,
with a copy to the complex office.
14.5. Procedure for expunging remarks on areas of improvement:
14.5.1. If an officer is aggrieved by the communication for improvements in certain areas

/ traits as reflected in his performance appraisal report, he could represent against the
same.

14.5.2. The authorities competent to consider and dispose of the representation would be
as under:
Officer in grade Competent authority
I / II / III / IV Concerned GMs.
V / VI Concerned MD / FD
VII and above chairman
14.5.3 Competent authority as at para 14.5.2 would examine such representations on the
basis of the relevant records and material avalaible and may also consult the IA / RA. If
the competent authority is convinced that the observation was unjustified, he may order
expunging such observation from the officer’s report.
14.5.4. Where the General Manager himself is the IA / RA, the managing director /
functional director will be the competent authority to dispose the representation and the
chairman will be the competent authority if the IA / RA is the managing director /
Functional director.
14.5.5. Suitable remarks to the effect that such observations have been expunged are to
be made by the competent authority in the performance appraisal report, at the place
where the remarks are expunged.
14.5.6. The officer concerned would be intimated about expunging the remarks or
otherwise, by the HRD cell of the concerned division / complex / corporate office.
15. Routing of the report:
15.1. Completed performance appraisal reports of the officers in grade I & II will be
maintained by the concerned divisions. Complex offices will maintain reports in reports
in respect of officers in grade III to IV. PARs in respect of officers in Grade VI and
above should be sent to corporate office.

15.2. While forwarding the performance appraisal reports of officers in Grade VI &
above to corporate office, the following procedure should be followed:
i) Reports in respect of officers in grade VIII & above should be sent to the Director
(Personnel).
ii) Reports in respect of officers in grade VI & VII should be sent to the general manager
(personal & administration).
iii) The envelope containing the performance appraisal reports should be marked
“confidential” and “To be opened by the addressee only”.
16. Appraisals on officers in vigilance department:
16.1. Performance appraisal on officers in the vigilance department will be raised as

indicated below:
16.1.1. Executive Director (Vigilance), Corporate office, will be the IA in respect of

heads of vigilance departments in the divisions.
16.1.2. Executive Director (Vigilance) will also be the RA in respect of heads of

vigilance department in the divisions / offices upto and including grade III. Chairman will
be the RA in respect of heads of vigilance department in grade IV & above.
16.1.3. In respect of officers of vigilance department who are working under the heads of
vigilance in each division / office, executive director (Vigilance) would be the RA. In
respect of such officers in grade IV and above, chairman would endorse his views in part
G.4 of the format.
16.1.4. After the reports are filled in as at paras 15.1.1 to 15.1.3 above, executive director
( Vigilance) would also complete the column of evaluation by performance review board
at part – G of the report.

16.1.5. Completed reports as at paras 15.1.1 to 15.1.4 would be retained in the office of
the executive director (Vigilance), corporate office.
17. Appraisals on the officers of systems audit department:
17.1. Head of systems audit at corporate office will be the IA in respect of heads of
systems audit cells in the divisions.
17.2. Head of systems audit at corporate office will also be the RA in respect of Head of
systems audit cell in the divisions who are in grades I to III. Director (Finance) will be
the RA in respect of Head of systems audit cell in the divisions in grades IV & above.
17.3. In respect of officers in systems audit who are working under the head of systems
audit cell in the divisions, head of systems audit at corporate office would be the RA. In
respect of such officers in Grade IV and above, Director (Finance) would endorse his
views in part G of the format.
17.4. After the reports are filled in as at paras 16.1 to 16.3 above, Head of systems audit
at corporate office would also complete the column of evaluation by performance review
board at part- G of the report.
17.5. Completed reports as at paras 16.1 to 16.4 would be sent back to the concerned
division / office by the head of systems audit at corporate office, for retention.
17.6. Administrative, heads of systems audit cells in the divisions / offices would
continue to report to the corporate general manager.

18. Appraisals on heads of finance, IMM and personnel &
administrative in the complex / division:
18.1. In respect of heads of finance, IMM and personnel & administration in grade VII
and above in the complex offices, managing director would be the IA and chairman
would be the RA. In respect of such officers in grade VI and below, concerned managing
director would be the IA & RA. In respect of heads of finance, IMM and personnel &
administration in the divisions, divisional head would be the IA and concerned managing
director would be the RA. In all such cases, the concerned functional director at corporate
office would indicate his remarks at part- G of the format.
19. Performance appraisal of officers on deputation / retaining lien:

19.1. The performance appraisal of the officers on deputation to the company from the
state / central government and other PSUs and / or officers retaining lien in their parent
organization are to be raised in the prescribed performance appraisal form of the
respective state / central government and other PSUs concerned, for respective parent
organization. The annual appraisal report of the service officers on deputation, from
Indian Air Force, Indian Navy & Indian Army are to be raised in the prescribed
confidential report form.
19.2. In case of Airforce officers on deputation to HAL as test pilots, the following would
be the appraisal channel in the prescribed format of Indian Airforce
20. Maintenance of performance appraisal records:
20.1. An upto date bio-data of the officer should be kept as the first sheet in the
performance appraisal records of each officer. A recent passport size photograph should
be affixed on the inside front of the performance appraisal records.

20.2. The inside of the front cover of the performance appraisal records should contain a
summary of assessment in the following format:
Annexure No. Assessment Period Overall Gradation /
Marks / performance
rating
20.3. This summary will provide at a glance, the gradation / marks/ rating given to the
officer right from the beginning of the service.
21. Check by HRD cell:
21.1. Part- I of the performance appraisal provides a check list to be checked and signed
by the officer in charge of the HRD cell. The officer checking the filling of the form
should check for discrepancies / inconsistencies, if any, guide the appraisers so that the
appraisal system serves the purpose for which it is instituted.
22. Format for filling up of details of officers in grades I to X except V &

VI.
Refer to exhibit no: 11

23. Grade- I & II
(For Part- A & B refer to exhibit no. 1 & 2.)
PART- C C.1. Assessment of traits
Grade of the appraisee Initiating authority Reviewing authority

Grade- I / II Minimum grade III or Minimum grade V or above
above
Note: While levels of the IA & RA, in general, should be done as above, if the appraisee
is reporting to officers at lower levels, the IA & RA can be in lower grades also.
Attributes and their description Maximum Initiating Reviewing

marks authority authority
1.Performance: Based on the marks scored 80
against quarterly tasks (Part A)
2. Job knowledge: Extent of theoretical 5
knowledge & practical know-how as related to
assigned tasks; Related / allied jobs & knowledge
of current developments in his own field.
3. Quality of work: General excellence of output, 5
systems and methods.
4. Man management: Ability to ensure optimum 5
utilization of manpower towards target fulfillment.
5. Punctuality & Attendance: General discipline 5
in adhering to work timing and attendance
100

Note: If there is variation in the marks awarded between the IA and the RA against
“performance” at Part C.1.1 above, the RA should indicate justification for such variation
also at column C.1.1.
(For Part- C.2, D, E, F, G, H & I refer to exhibit 3, 4, 5, 6, 7, 8 & 9.)

24. GRADE- III and IV
(For Part A & B refer to exhibit no. 1 & 2.)
Part- C Assessment of traits

Grade- III / IV Minimum grade V or above Minimum grade VI or
above
Note: While the levels of the IA & RA, in general, should be as above, if the appraisee is
reporting to officers at lower levels, the IA & RA can be in lower grades also.

2. Job knowledge: Extent of theoretical 5
knowledge & practical know-how as related to
assigned tasks; Related / allied jobs &
knowledge of current developments in his own
field.
3. Planning & coordination: ability to work 5
meticulously plan his job and effectively
coordinate with his team members in

achievement of common organizational goals
4. Quality of work: General excellence of 5
output, systems and methods
5. Developing subordinates: ability to interact, 5
guide, counsel and nurture subordinates with a
view not only to help them to perform their
present job effectively but also to groom them
for meeting greater responsibilities / challenge.
6. Potential to shoulder higher 5
responsibilities: ability to take up higher level
responsibility and set pace for the team members
towards goal achievement.
100
‘performance’ in part- C.1.1 above, the RA should indicate justification for such variation
also at column C.1.1.
(For Part- C.2, D, E and F refer to exhibit no. 3, 4, 5 & 6.)
G.1. Evaluation by performance review board (In case of annual reports only)
(To be recorded by the secretary of the performance review board. PRB to consult IA /
RA, wherever necessary, if they are not the members of PRB, before awarding final
marks/ performance rating. Final marks / performance rating to be awarded based on the
scale of gradation at part C.2)
Final marks / performance rating

Secretary: Chairman of PRB:
Signature: Signature:

Name: Name:
Date: Date:
G.2. Remarks of general manager (if not IA/ RA)
Name: Signature:
G.3. Remarks of functional director (In case of HODs of functional departments namely
P&A, finance & IMM) (In case he is not IA / RA)
Name: Signature:
G.4 a) Remarks of Managing Director / Functional director (Only for Grade IV) (In case
he is not IA / RA)
b) Remarks of Chairman in case of officers of vigilance department (Only Grade IV)
(In case he is not IA / RA)
Name: Signature:
(For Part- H & I refer to exhibit no. 6 & 7.)
25. GRADE- V & VI

Format for filling up of officers in grades:
Refer to exhibit no:12.
(For part- A & B refer to exhibit no. 1 & 2.)

Part- C C.1 Assessment of traits

Grade- V / VI Minimum grade VII or Minimum grade VIII or
Above Above
Note: While levels of the IA & RA, in general, should be as above, if the appraisee is

2. Professional Competence: Functional, 5
managerial ability / and attitude in application of
job knowledge to set perspective plan and
fulfillment of the same with optimum use of
resources.
3. Quality consciousness: General excellence of 5
work / job executed. Efforts to achieve quality
improvement plan strive for higher standards
4. Cost and time consciousness: Utilisation of 5
resources effectively, ensuring required tolerance /
quality within optimum time and minimum costs.
present job effectively but also to groom them for

meeting greater responsibilities / challenge.
6. Team Building: Ability to interact, command 5
& influence people with a view to have
cohesiveness amongst them to ensure thrust in the
direction of achievement of targets.
7. Potential to shoulder higher responsibilities: 5
ability to take up higher level responsibility and
set pace for the team members towards goal
achievement.
100
(For Part-C.2, D, E, F & (G.1, G.2) refer to exhibit no.3, 4, 5, 6 & 7

respectively.)
G.3. Evaluation by performance review board

(In case of annual reports only. To be recorded by the secretary of the performance
review board. PRB to consult IA / RA, wherever necessary, if they are not members of
PRB, before awarding final marks / performance rating. Final marks / performance rating
to be awarded based on the scale of gradation at item C.2)
Secretary: Chairman of PRB(MD / FD)

Name: Name:
Date: Date:
G.4 a) Remarks of Managing Director / functional director (In case he is not IA / RA)
b) Remarks of the chairman in case of officers of vigilance department (In case he is
not RA)

Name: Signature:
(For Part- H & I refer to Exhibit no. 8 & 9 respectively.)
26. Grade- VII & VIII
(For Part- A & B refer to exhibit no. 1 & 2 respectively.)
Part- C C.1. Assessment of traits

Grade- VII / VIII Minimum grade- IX or Minimum grade X or above
above
NOTE: while the levels of IA & RA, in general, should be as above, if the appraisee is

resources.

5. Customer satisfaction: Ability to fulfill the
needs of both external and internal customers of
his position
6. Time Management: Productive and effective 5
use of available time.
achievement.
100
(For Part- C.2, D, E, F, G, H & I refer to exhibit no. 3, 4, 5, 6, 7, 8 & 9.)

27. Grade- IX & X
(For Part- A & B refer to exhibit no. 1 & 2.)

Part- C C.1. Assessment of traits

Grade- IX / X MD / FD CH
Note: While all levels of the IA & RA, in general, should be as above, if the appraisee is
reporting to officers at lower levels, the IA & RA can be lower grades also.

resources.
5. Customer satisfaction: Ability to fulfill the
needs of both external and internal customers of
his position
6. Time Management: Productive and effective 5

use of available time.
7. Man management: Ability to manage people 5
as a team
10. Management of external environment: 5
Ability to deal with external agencies towards
building image of the company.
achievement.
100
‘performance’ at Part- C.1.1 above, the RA should indicate justifications for such
variation also at column C.1.1.
(For Part-C.2, D, E, F, G, H & I refer to exhibit no. 3, 4, 5, 6, 7, 8 & 9.)
APPENDIX- F
28. QUARTERLY TASK SETTING & ASSESSMENT SHEET
For the year 20__ to 20__
_____ Quarter ( From _____ to ______)

• Task setting to be done after joint discussion between the appraisee and the
iniating authority, by the 7th of the 1st Month of the quarter. IA may consult the
RA before finalizing the quarterly tasks. Assessment to be done after joint
discussions between the appraisee and the IA, by the 7th of the 1st month of the
subsequent quarter.
Sl Tasks Achievement of tasks Maximum Marks

No. marks score
assigned for
for each each
task task
Total marks 100
(Signature of the appraisee) (Signature of the IA)

Name: Name:
Designation: Designation:
Date: Date:
Note: i) More numbers of sheets can be used for each quarter, if required.
ii) Separate sheets to be filled up for each quarter.
iii) These sheets are to be enclosed to the Annual / Probationary PAR of the
appraisee, as the case may be.

APPENDIX- G
29. Help Matrix
Help matrix for awarding marks out of 5 from Trait No.2 onwards:
29.1. For level- I- Grade- I / II
Traits Marks scored

5 4 3 2 1
Job knowledge: Has Has good Has adequate Has reasonable Has little or no
extent of excellent knowledge job job knowledge job knowledge
theoretical knowledge and updates knowledge
knowledge & in the regularly
Practical theoretical
knowledge know- as well as
how as related to practical
assigned tasks; aspects of
related/ allied jobs defined
& knowledge of areas
current
development in his
own field.
Quality of work: Consistently Always Maintains Maintains Unsatisfactory
General excellence maintains maintains adequate reasonable level of quality
of output, methods highest good level of level of level of quality of work
and systems. level of quality in all quality in all in all areas of
quality in areas of work areas of work work
all areas of
work
Man Has Has good Has adequate Has reasonable Lacks ability to

Management: excellent ability to ability to ability to manage people
Ability to ensure ability to carry people manage manage people at work
optimum inspire and along with people at at work
utilization of man motivate him to work
power towards people to achieve
target fulfillment. get the best results
out of them
Punctuality & Extremely Shows good Shows Shows Does not adhere
Attendance: good at adherence to adequate reasonable to work timing
General discipline adhering to work timing adherence to adherence to and is irregular
in adhering to work timing and regularity work timing work timing
work timing and and and regularity and regularity
attendance regularity
29.2. Level- II for Grade III / IV

Traits Marks Scored
5 4 3 2 1
Job knowledge: Has excellent Has good Has adequate Has reasonable Has little or no
extent of knowledge in knowledge job knowledge job knowledge job knowledge
theoretical the and updates
knowledge & theoretical as regularly
Practical well as
knowledge practical
know-how as aspects of
related to defined areas
assigned tasks;
related/ allied
jobs &
knowledge of

current
development in
his own field.
2. Planning & Has excellent Has good Has adequate Has reasonable Lacks planning
coordination: planning and planning and planning and planning and and
ability to work coordination coordination coordination coordination coordination
meticulously ability ability ability ability ability
plan his job and
effectively
coordinate with
his team
members in
achievement of
common
organizational
goals
3. Quality of Consistently Always Maintains Maintains Unsatisfactory
work: General maintains maintains adequate level reasonable level of quality
excellence of highest level good level of of quality in level of quality of work
output, systems of quality in quality in all all areas of in all areas of
and methods all areas of areas of work work work
work
4. Developing Extremely Good in Adequate Makes an Lacks ability
subordinates: successful in identifying ability to attempt to to develop
ability to helping and subordinates develop develop subordinates
interact, guide, training his capacities and subordinates subordinates
counsel and subordinate training them
nurture to assume for assuming
subordinates higher higher
with a view not responsibiliti responsibilities

only to help them es
to perform their
present job
effectively but
also to groom
them for meeting
greater
responsibilities /
challenge.
5. Potential to Always Very often Often prepared Sometimes Never
shoulder higher prepared to prepared to to shoulder prepared to prepared to
responsibilities: shoulder shoulder higher shoulder shoulder
ability to take up higher higher responsibilities higher higher
higher level responsibiliti responsibilities responsibilities responsibilities
responsibility es
and set pace for
the team
members
towards goal
achievement.
29.3. Level- III for grade V / VI

Traits Marks scored
5 4 3 2 1
1. Professional Has excellent Professionally Has adequate Has reasonable Professionally
Competence: professional quite professional professional incompetent
Functional, competence competent competence competence
managerial
ability / and

attitude in
application of
job knowledge
to set
perspective plan
and fulfillment
of the same with
optimum use of
resources.
2. Quality Consistently Always Maintains Maintains Unsatisfactory
consciousness: maintains maintains adequate level reasonable level of quality
General highest level good level of of quality in level of quality of work
excellence of of quality in quality in all all areas of in all areas of
work / job all areas of areas of work work work
executed. work
Efforts to
achieve quality
improvement
plan strive for
higher standards
Cost and time Had Good at Adequate Reasonable Lacks ability
consciousness: exceptional maintaining ability to ability to to maintain
Utilisation of ability to cost and time maintain cost maintain cost cost and time
resources manage cost and time and time
effectively, and time
ensuring
required
tolerance /
quality within
optimum time

and minimum
costs.
counsel and subordinate to training them
nurture assume higher for assuming
subordinates responsibilities higher
with a view not responsibilities
only to help
them to perform
their present job
effectively but
also to groom
them for
meeting greater
responsibilities /
challenge.
9. Team An excellent Good ability to Adequate Reasonable Lacks ability
Building: team builder build an ability to build ability to build to build a team
Ability to and leads the effective team a team a team
interact, team towards
command & fulfillment of
influence people targets
with a view to
have
cohesiveness
amongst them to
ensure thrust in

the direction of
achievement of
targets.
Potential to Always Very often Often prepared Sometimes Never
shoulder prepared to prepared to to shoulder prepared to prepared to
higher shoulder shoulder higher shoulder shoulder
responsibilities: higher higher responsibilities higher higher
ability to take responsibilities responsibilities responsibilities responsibilities
up higher level
responsibility
and set pace for
the team
members
towards goal
achievement.
29.4. Level- IV for grade VII / VIII
Traits Marks scored

5 4 3 2 1
2. Professional Has excellent Professionally Has adequate Has Professionally
Competence: professional quite professional reasonable incompetent
Functional, competence competent competence professional
managerial competence
ability / and
attitude in
application of
job knowledge
to set

perspective plan
and fulfillment
of the same with
optimum use of
resources.
executed. work
Efforts to
achieve quality
improvement
plan strive for
higher standards
4. Cost and Had Good at Adequate Reasonable Lacks ability
time exceptional maintaining ability to ability to to maintain
consciousness: ability to cost and time maintain cost maintain cost cost and time
Utilisation of manage cost and time and time
resources and time
effectively,
ensuring
required
tolerance /
quality within
optimum time
and minimum
costs.
5. Customer Has excellent Good in Adequate Reasonably Lacks ability

satisfaction: ability to satisfying the ability to satisfying the to satisfy the
Ability to fulfill satisfy the needs of the satisfy the needs of the needs of the
the needs of needs of the customers needs of the customer customers
both external customers customers
and internal
customers of his
position
6. Time Exceptionally Good in time Reasonably Fairly does the Does not plan
Management: good in time management good in time time at all time
Productive and management management management management
effective use of
available time.
only to help
them to perform
their present job
effectively but
also to groom
them for
meeting greater
responsibilities /
challenge.
8. Team An excellent Good ability to Adequate Reasonable Lacks ability

with a view to
have
cohesiveness
amongst them to
ensure thrust in
the direction of
achievement of
targets.
9. Potential to Always Very often Often prepared Sometimes Never
shoulder prepared to prepared to to shoulder prepared to prepared to
higher shoulder shoulder higher shoulder shoulder
responsibilities: higher higher responsibilities higher higher
ability to take responsibilities responsibilities responsibilities responsibilities
up higher level
responsibility
and set pace for
the team
members
towards goal
achievement.

29.5. Level- V for Grade IX / X
Traits Marks scored

5 4 3 2 1
2. Professional Has excellent Professionally Has adequate Has Professionally
Competence: professional quite professional reasonable incompetent
Functional, competence competent competence professional
managerial competence
ability / and
attitude in
application of
job knowledge
to set
perspective plan
and fulfillment
of the same with
optimum use of
resources.
executed. Efforts work
to achieve
quality
improvement
plan strive for
higher standards

4. Cost and Had Good at Adequate Reasonable Lacks ability
time exceptional maintaining ability to ability to to maintain
consciousness: ability to cost and time maintain cost maintain cost cost and time
Utilisation of manage cost and time and time
resources and time
effectively,
ensuring
required
tolerance /
quality within
optimum time
and minimum
costs.
5. Customer Has excellent Good in Adequate Reasonably Lacks ability
satisfaction: ability to satisfying the ability to satisfying the to satisfy the
Ability to fulfill satisfy the needs of the satisfy the needs of the needs of the
the needs of both needs of the customers needs of the customer customers
external and customers customers
internal
customers of his
position
6. Time Exceptionally Good in time Reasonably Fairly does the Does not plan
Management: good in time management good in time time at all time
Productive and management management management management
effective use of
available time.
7.Man Has excellent Has good Has adequate Has Lacks ability
management: ability to ability to carry ability to reasonable to manage
Ability to inspire and people along manage people ability to people at work
manage people motivate with him to at work manage people

as a team people to get achieve results at work
best out of
them
8.Developing Extremely Good in Adequate Makes an Lacks ability
only to help
them to perform
their present job
effectively but
also to groom
them for
meeting greater
responsibilities /
challenge.
9.Team An excellent Good ability to Adequate Reasonable Lacks ability
with a view to
have
cohesiveness
amongst them to

ensure thrust in
the direction of
achievement of
targets.
10.Management Manages Good at Adequate Reasonable Lacks ability
of external external managing ability in ability in in managing
environment: environment external managing managing external
Ability to deal exceptionally environment external external environment
with external environment environment
agencies towards
building image
of the company.
9.Potential to Always Very often Often prepared Sometimes Never
shoulder higher prepared to prepared to to shoulder prepared to prepared to
responsibilities: shoulder shoulder higher shoulder shoulder
ability to take up higher higher responsibilities higher higher
higher level responsibilities responsibilities responsibilities responsibilities
responsibility
and set pace for
the team
members
towards goal
achievement.

30. Short comings in the performance appraisal system:
1. Company has quarterly task setting and assessment method which makes the
entire performance appraisal system a very long procedure.
2. As the system is on the quarterly basis so the employees work on a short term
project. They give less emphasis on long term project because that may not be
noticeable in a quarter period.
3. The company has 16 divisions, which makes the entire appraisal system a tedious
job and a lot of time is spent on collection of information.
4. The appraisal emphasises on the collective achievement by the entire division
rather than on an individual.
5. Till yet there has no strong action taken against any negative comments given in
the appraisal system.
6. The appraisal system has different attributes and traits description. There are 10
grades which is divided into 5 grades. This qualitative measurement is a time
consuming procedure.
7. The slow performers are intimated in writing but hardly any interaction is done by
the manager to find out problems encountered by the particular employee.
Conclusion:
The complete performance appraisal is nevertheless a good transparent procedure but still
some areas need to be looked upon. The company irrespective of any problems
encountered conducts the appraisal system in due time. Mostly the performance of an
employee also depends on the overall performance of the particular division he is
employed. There is a quarterly procedure for task setting and assessment. All employees
including officers on probation, audit department and vigilance department have to go
through this performance appraisal system. Team building and time management is an
important in almost all grades. A person taking initiative to handle higher responsibilities
is given a space to grow in all fields. Apart from the skills acquired by the particular
employee the appraisal system also emphasizes on the ability of a person in encouraging
his subordinates to grow. There is a lacunae in the traits described to be included during

the performance appraisal system i.e. there is no importance given on innovation.
Including innovation in the traits can add a new initiative activity among the employees.
Reward system can also include the innovative work of the employees. The awareness
about performance appraisal system is well known among the executives but the no-
executives were to some extent unaware of this particular procedure. The help matrix
designed for the description of the marks to be awarded for a trait is very well elaborated.
In case of a new HR recruitment the clear format gives a complete idea of the procedure
followed. Looking at the new trends going on in the market there has been a minor
changes brought into the system in 2000-01.

EXHIBITS
EXIHIBIT: 1
PART- A Summary of achievements of quarterly tasks
• Tasks setting and assessment to be done after joint discussion between the
Appraisee and the initiating authority, in the prescribed format. Task setting
and assessment sheets of all the four quarters are to be enclosed to the PAR
of the appraisee.
Summary of achievements against quarterly tasks as indicated in the “quarterly
task setting & assessment sheet” of each quarter
Quarter Maximum marks Marks scored
I 100
II 100
III 100
IV 100
Average score 100
EXHIBIT: 2
PART- B Self appraisal (Appraisee should fill up this part and submit to IA at
the end of the assessment year)
B.1. What would you consider as your most significant contribution(s) in the year
under review?
B.2. What in your opinion needs to be done (by way of training or job rotation) to
further improve your level of effectiveness on the job?
B.3. What in your opinion are your areas of strength?
Name:
Designation: Signature:
Note: While filling in the form, the officer is requested to be brief and specific.
Highlight achievements in the context of annual tasks only. Routine / Normal tasks
carried out need not be mentioned.
B.4. Comments on self Appraisal

Initiating authority Reviewing authority

B.5. “Integrity” of the appraisee (Tick)
Above board Open to doubt If open to doubt, a
secret note should
be enclosed
IA
RA
EXHIBIT: 3
C.2. Scale of gradation:

rating
EXHIBIT: 4
Part- D Qualitative assessment of the appraisee (Pen Picture)
The IA and RA to comment on:

• The appraisee’s attitude towards his work, his colleagues, superiors and sub
ordinates.
• His general demeanour, security consciousness, his sociability and co-
curricular activities.
• His reaction to the feedback on the areas of improvements; and
improvements, if any shown by him.
• Any other comments.
EXHIBIT: 5
Part- E General assessment and management review categorization.
Assessment Strengths Areas requiring Management
authorities improvements review
categorization (ref.
note)

Initiating authority
Reviewing
authority
Note: Cat – A: An officer who has high degree of potential for advancement.
Cat - B: An officer who has potential for limited advancement.
Cat- C: An officer who has no potential for advancement.
EXHIBIT: 6
Part- F Training / developmental needs
Assessment authority Experience / job rotation Training / developmental

needs (indicate areas)
Reviewing authority
Signature of IA: Signature of RA:
Name: Name:
Designation / grade: Designation / grade:
Department: Department:
EXHIBIT: 7
Part- G
(To be recorded by the secretary of the performance review board. PRB to consult
IA / RA, wherever necessary, if they are not the members of PRB, before awarding
final marks/ performance rating. Final marks / performance rating to be awarded
based on the scale of gradation at part C.2)

Name: Name:
Date: Date:
Name: Signature:

EXHIBIT: 8
Part- H Illustrative list of areas of training:
1) General management
2) Quality management / Quality control
3) Production planning and control
4) Computers
5) Materials management
6) Functional areas
7) Interpersonal relationship
8) Communication skill
9) Advanced management programme
10) Organizational developmental programme
11) Project management
12) Presentation skills
13) Negotiation skills
14) Counseling skills
15) Senior executive programme
16) Finance management
17) Others
EXHIBIT: 9
Part- I For use of HRD cell
Check list:
a) Have all relevant columns of the report been filled? : Yes / No
b) Any other remarks on the report : Yes / No
c) Feedback, if any, to be communicated to the appraisee : Yes / No
If yes, date of communication of feedback :
Name: Signature:
Designation: Date:
Note: i) To be checked and signed by the officer in-charge of the HRD cell of the
division / office.

Exhibit: 10
HRD cell of division / office to:

• Make available sufficient copies of “quarterly
task setting & assessment sheet” to all
departments.
• Hand over the PAR format to appraisee by
20th March of the performance year.
• Receive the filled up PARs of the previous
year by 25th April.
• Forward reports of officers in grades V &
above to complex / corporate office by 30th
April / 5th May
• Convene meeting of PRB and complete part-
G of the report by 20th May.
• Communicate feedback, if any, to the Task
appraisees by 31st May. setting for
• Complete part- I of the report. the first
quarter by
7th April
Assessment by
RA by 20th
April
PERFORMANCE
Task setting for
APPRAISAL the second
Assessment of quarter &
4th quarter by CYCLE assessment of
7th April and first quarter by
completion of 7th July
report by IA
by 10th April
Task setting for

the fourth Task setting for the
quarter & third quarter &
assessment of assessment of second
A study of the performance appraisal system for executives. 65 by 7th
quarter
third quarter
by 7th January January
Exhibit :11
HINDUSTAN AERONAUTICS LIMITED

_________________DIVISION / OFFICE
PERFORMANCE APPRAISAL REPORT
(FOR OFFICERS IN ALL GRADES )
ANNUAL PROBATION I / II
For the period:_____To____

NAME EDUCATIONAL QUALIFICATIONS:
DESIGNATION
GRADE
DEPARTMENT
DATE OF BIRTH: DATE OF APPOINTMENT TO
PRESENT GRADE:
DATE OF SUPERANNUATION:
PROPERTY RETURN FOR THE YEAR ENDING _________SUBMITTED: YES /

NO
WHETHER QUALIFIED IN THE LEARNING AND CERTIFICATION EXAM
(“O” LEVEL): YES / NO
MONTH AND YEAR OF PASSING:
TRAINING COURSES ATTENDED DURING LAST 5 YEARS

Courses Institution From To
a) within India
b) abroad
SL No. period Designation Grade Division / Department Shop

office
From
to
(Signature of officer from HRD cell) (Signature of the Appraisee)

Exhibit:12

(FOR OFFICERS IN GRADE V & VI)
I / II
ANNUAL Probation
DESIGNATION
GRADE
DEPARTMENT
PRESENT GRADE:
PROPERTY RETURN FOR THE YEAR ENDING _________SUBMITTED: YES /

NO

a) within India
b) abroad

office
From
to

EXHIBITS
EXIHIBIT: 1
PART- A Summary of achievements of quarterly tasks
• Tasks setting and assessment to be done after joint discussion between the
Appraisee and the initiating authority, in the prescribed format. Task setting and
assessment sheets of all the four quarters are to be enclosed to the PAR of the
appraisee.
Summary of achievements against quarterly tasks as indicated in the “quarterly task
setting & assessment sheet” of each quarter
Quarter Maximum marks Marks scored
I 100
II 100
III 100
IV 100
Average score 100
EXHIBIT: 2
PART- B Self appraisal (Appraisee should fill up this part and submit to IA at
the end of the assessment year)
B.1. What would you consider as your most significant contribution(s) in the year under
review?
B.2. What in your opinion needs to be done (by way of training or job rotation) to further
improve your level of effectiveness on the job?
B.3. What in your opinion are your areas of strength?
Name:
Designation: Signature:
Note: While filling in the form, the officer is requested to be brief and specific. Highlight
achievements in the context of annual tasks only. Routine / Normal tasks carried out need
not be mentioned.
B.4. Comments on self Appraisal


B.5. “Integrity” of the appraisee (Tick)
Above board Open to doubt If open to doubt, a
secret note should
be enclosed
IA
RA
EXHIBIT: 3
C.2. Scale of gradation:

rating
EXHIBIT: 4
Part- D Qualitative assessment of the appraisee (Pen Picture)
The IA and RA to comment on:
• The appraisee’s attitude towards his work, his colleagues, superiors and sub
ordinates.
• His general demeanour, security consciousness, his sociability and co-curricular
activities.
• His reaction to the feedback on the areas of improvements; and improvements, if
any shown by him.
• Any other comments.
EXHIBIT: 5
Part- E General assessment and management review categorization.
Assessment Strengths Areas requiring Management
authorities improvements review
categorization (ref.
note)

Reviewing authority
Note: Cat – A: An officer who has high degree of potential for advancement.
Cat - B: An officer who has potential for limited advancement.
Cat- C: An officer who has no potential for advancement.
EXHIBIT: 6
Part- F Training / developmental needs
Assessment authority Experience / job rotation Training / developmental

needs (indicate areas)
Reviewing authority
Signature of IA: Signature of RA:
Name: Name:
Designation / grade: Designation / grade:
Department: Department:
EXHIBIT: 7
Part- G
(To be recorded by the secretary of the performance review board. PRB to consult IA /
RA, wherever necessary, if they are not the members of PRB, before awarding final
marks/ performance rating. Final marks / performance rating to be awarded based on the
scale of gradation at part C.2)

Name: Name:
Date: Date:
Name: Signature:

EXHIBIT: 8
Part- H Illustrative list of areas of training:
18) General management
19) Quality management / Quality control
20) Production planning and control
21) Computers
22) Materials management
23) Functional areas
24) Interpersonal relationship
25) Communication skill
26) Advanced management programme
27) Organizational developmental programme
28) Project management
29) Presentation skills
30) Negotiation skills
31) Counseling skills
32) Senior executive programme
33) Finance management
34) Others
EXHIBIT: 9
Part- I For use of HRD cell
Check list:
a) Have all relevant columns of the report been filled? : Yes / No
b) Any other remarks on the report : Yes / No
c) Feedback, if any, to be communicated to the appraisee : Yes / No
If yes, date of communication of feedback :
Name: Signature:
Designation: Date:
Note: i) To be checked and signed by the officer in-charge of the HRD cell of the
division / office.

Exhibit: 10
HRD cell of division / office to:

• Make available sufficient copies of “quarterly
task setting & assessment sheet” to all
departments.
• Hand over the PAR format to appraisee by 20th
March of the performance year.
• Receive the filled up PARs of the previous year
by 25th April.
• Forward reports of officers in grades V & above
to complex / corporate office by 30th April / 5th
May
• Convene meeting of PRB and complete part- G
of the report by 20th May.
• Communicate feedback, if any, to the appraisees Task
by 31st May. setting for
• Complete part- I of the report. the first
quarter by
7th April
Assessment by
RA by 20th
April
PERFORMANCE
Task setting for
APPRAISAL the second
Assessment of quarter &
4th quarter by CYCLE assessment of
7th April and first quarter by
completion of 7th July
report by IA by
10th April
Task setting for Task setting for the

the fourth third quarter &
quarter & assessment of second
assessment of A study of the performance appraisal system for executives. 72
quarter by 7th January
third quarter by
7th January
Exhibit :11

(FOR OFFICERS IN ALL GRADES )
ANNUAL PROBATION I / II

DESIGNATION
GRADE
DEPARTMENT
PRESENT GRADE:
PROPERTY RETURN FOR THE YEAR ENDING _________SUBMITTED: YES / NO
WHETHER QUALIFIED IN THE LEARNING AND CERTIFICATION EXAM (“O”

LEVEL): YES / NO
MONTH AND YEAR OF PASSING:

a) within India
b) abroad

office
From to

Exhibit:12

(FOR OFFICERS IN GRADE V & VI)
I / II
ANNUAL Probation
DESIGNATION
GRADE
DEPARTMENT
PRESENT GRADE:
PROPERTY RETURN FOR THE YEAR ENDING _________SUBMITTED: YES / NO

a) within India
b) abroad

office
From to

BIBILOGRAPHY:
Websites
www.hal-india.com
www.google.com
www.hrsolutions.com
Journals
Performance appraisal format of Hindustan Aeronautics Limited
HR magazines

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Summer Internship Project Report

In Partial fulfillment of the requirements for the Managerial training

A study of the performance appraisal system for executives. 1

He has submitted his project report titled “A study of performance

Mr. Manish Jain, CEO, Indian Business Academy

A study of the performance appraisal system for executives. 2

He has submitted his project report titled “A study of performance

Prof. Subash Sharma, Dean, Indian Business Academy

A study of the performance appraisal system for executives. 3

He has submitted his project report titled “A study of performance

Prof. Parul Goil, Mentor, Indian Business Academy

A study of the performance appraisal system for executives. 4

Ms. Puspanjali Das, PGPM 2006-08 (FPB0608/ 039)

A study of the performance appraisal system for executives. 5

A study of the performance appraisal system for executives. 6

A study of the performance appraisal system for executives. 7

A study of the performance appraisal system for executives. 8

A study of the performance appraisal system for executives. 9

A study of the performance appraisal system for executives. 10

A study of the performance appraisal system for executives. 11

Headquartered in Bangalore, Hindustan Aeronautics Limited (HAL) is mainly involved

A study of the performance appraisal system for executives. 12

There are three joint venture companies with HAL :

A study of the performance appraisal system for executives. 13

VISION OF THE COMPANY

MISSION OF THE COMPANY

A study of the performance appraisal system for executives. 14

FOCUS OF HUMAN RESOURCE POLICY

A study of the performance appraisal system for executives. 15

I ) MAN POWER PLANNING

II ) TRAINING AND DEVELOPMENT

A study of the performance appraisal system for executives. 16

III ) PERFORMANCE APPRAISAL :

A study of the performance appraisal system for executives. 17

V ) SCHEME FOR LEARNING AND CERTIFICATION FOR EXECUTIVES

FINANCIAL BACKGROUND OF THE COMPANY:

A study of the performance appraisal system for executives. 18

A study of the performance appraisal system for executives. 19

Comments & integrity IA & RA

Part- C Assessment of traits IA & RA

Remarks of higher authority GM/ MD/ FD/

3. Quarterly tasks & achievements:

A study of the performance appraisal system for executives. 20

A study of the performance appraisal system for executives. 21

5. Levels of Initiating Authority / Reviewing Authority:

A study of the performance appraisal system for executives. 22

7. Pen Picture (Qualitative Assessment):

A study of the performance appraisal system for executives. 23

8. General assessment & management review categorization:

Cat-A: An officer who has a high degree of potential for advancement.

Cat-B: An officer who has potential for limited advancement.

Cat-C: An officer who has no potential for advancement.

8.4. This assessment should also be made for officers on probation.

A study of the performance appraisal system for executives. 24

10. Performance Review Board:

10.2. Chairman and members of the PRB would be indicated below:

A study of the performance appraisal system for executives. 25

10.5. In respect of officers in grade I to IV of corporate office, Director (Corporate

11. Remarks by the higher authorities:

12. Performance appraisal of the officers on probation:

A study of the performance appraisal system for executives. 26

13. Assessment period: