FYP Appraisal Sameer Project

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com
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: S. SURESH Sr. Manager HR Human Resource, GPIL Supervised By Internal Guide: Dr. MONIKA SETHI HOD Human Resource, DSM Submitted by:
2010 DEPARTMENT OF MANAGEMENT

AICTE Approved, Ministry of HRD Government of India
DISHA SCHOOL OF MANAGEMENT DECLARATION
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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) ii) iii) iv) Embodies the work of the candidate himself, Has duly been completed, Fulfils the requirement of the ordinance relating to the PGDM degree of the Institute and 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 Internal Examiner Date:
__________________ __________________ Name & Signature of External Examiner 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
I
Title
Introduction
1.1 introduction to the topic 1.2 objectives of the study 1.3 scope of the study 1.4 limitations of the study
Page No.
1
II
Concept and Review 2.1. concepts of the study 2.2 review of related literature 2.3 company profile 2.4 product profile
III
Methodology 3.1 introduction
21
3.2 research design 3.3 sampling techniques 3.4 data collection 3.5 tools of the study
IV
Analysis and Interpretation

4.1 analysis of the data
24
Suggestion and Conclusion

5.1 findings of the study 5.2 suggestions 5.3 conclusion
44
Bibliography Appendix
48 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 individuals 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 individuals 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 employees 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 employees satisfaction level regarding the existing performance appraisal system. To find out whether the company is providing effective training for the improvement of employees performance. To determine the gaps in the existing system. To determine what type of appraisal did the employees 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 respondents 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 worlds 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 Indias 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: Innovation Creativity Diversity To Employees: Concern for employee Professional Work Culture Trusteeship, Respect for individual
Environmental excellence Change Customer Focus Organizational Pride Total quality Employees
To Society: Responding to the needs of community Partnering the community in timely manner Providing Aids whenever & wherever Required
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 companys 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 companys 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 Steel Billets Steel Wires Power Ferro Alloys Oxygen Gas 4,95,000 MTPA 4,00,000 MTPA 1,20,000 MTPA 53 MW 16,500 MTPA 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 appraisal Peers Subordinates Supervisors No of respondents 10 14 76 Simple percentage 10 14 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 Basis of performance appraisal Quality Target Both 12 08 80 respondents
Simple percentage
12 08 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 of the appraisal system Frequency of appraisal Monthly Half yearly Annual 360 degree No of respondents 06 40 50 04 Simple percentage 06 40 50 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 appraisal based on Personality traits Behaviour Results All the above 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 06 10 80 06 10 80 No of respondents 04 Simple percentage 04
Table showing types of appraisal Types of appraisal Subjective Objective Both No of respondents 12 12 76 Simple percentage 12 12 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 contact at the time of appraisal SA A NC D SD Source: Primary data 06 48 20 22 4 06 48 20 22 4 No of respondents Simple percentage
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 given at the time of appraisal SA A NC D SD 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 evaluates strength and No of respondents Simple percentage 14 56 20 08 02 14 56 20 08 02 No of respondents Simple percentage
weaknesses SA A NC D SD 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 skill gaps SA A NC D SD 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. No of respondents 10 56 26 08 00 Simple percentage 10 56 26 08 00 24 42 24 06 04 24 42 24 06 04
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 providing effective training SA A NC D SD 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 24 32 36 06 02 24 32 36 06 02 No of respondents Simple percentage
Appraisal helps in No of Simple personal respondents percentage growth SA A NC D SD Source: Primary data Inference The table shows that 46% of the respondents are agree with their personal growth, 26% of the respondents 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. 24 46 26 4 0 24 46 26 4 0
Table 12 Table shows appraisal helps in promotion aspects Appraisal helps in promotion aspects SA A NC D SD No of respondents 30 54 10 06 00 Simple percentage 30 54 10 06 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 for job rotation Yes No No of respondents 80 20 Simple percentage 80 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 For job enlargement Yes No
No of respondents 90 10
Simple percentage 90 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 their development Yes No respondents 20 80 Simple percentage 20 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 with supervisor
No of responde nts
Simple percenta ge
Yes No Source: Primary data Inference
70 30
70 30
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 improve No of respondents Simple percentage
performance
Yes No Source: Primary data Inference
86 14
86 14
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 Attitude /Behaviour Yes No No of respondents 70 30 Simple percentage 70 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 your salary Yes No No of respondents 78 22 Simple percentage 78 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 appraisal Yes No Source: Primary data Inference
No of respondents 76 24
Simple percentage 76 24
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 Your age group? a) 19 - 23 Designation Department Date of joining b) 24 - 28 c) 29 - 33 d) 34 38 e) above 38 : ___________________ : ___________________ : ___________________ : a) Male b) Female
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 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? 14. Do you recommend job enlargement for your development? 15. Do you have any ideas to recommend for your development? If yes, Please specify___________________________. 16. At the time of appraisal documentation review, did you have face to face interaction with your appraiser? 17. Were opportunities given to you to improve your performance? 18. Does the performance appraisal review actually change your Yes/No Yes/No Yes/No Yes/No Yes/No Yes/No 2 3 4 5
attitude / behaviour? 19. Based on the performance ratings, is there any increase in the salary? 20. Are you happy with the present appraisal system? Yes/No Yes/No
Do you have any comments or suggestions, please specify . Signature of Employee Date: Comments of Immediate Superior: Signature

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A Summer Internship Project On

Impact of Performance Appraisal System in GPIL

2010 DEPARTMENT OF MANAGEMENT

DISHA SCHOOL OF MANAGEMENT DECLARATION

___________________ (Signature of the Candidate)

________________ ________________ Name & Signature of Internal Examiner Date:

__________________ __________________ Name & Signature of External Examiner Date:

Academic Head Department of Management ACKNOWLEDGEMENT

___________________ (Signature of the Candidate)

Methodology 3.1 introduction

Analysis and Interpretation

Suggestion and Conclusion

1.1 INTRODUCTION TO THE TOPIC

CHAPTER 2 CONCEPTS AND REVIEW

2.3 COMPANY PROFILE

2.4 PRODUCT PROFILE

ANALYSIS AND INTERPRETATION

No of Basis of performance appraisal Quality Target Both 12 08 80 respondents

Source: Primary data

Source: Primary data

Recommendation For job enlargement Yes No

Source: Primary data Inference

Yes No Source: Primary data Inference

Yes No Source: Primary data Inference

Happy with present appraisal Yes No Source: Primary data Inference

APPENDIX IMPACT OF PERFORMANCE APPRAISAL SYSTEM ON GPIL

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Name & Signature of Internal Examiner Date:

Name & Signature of External Examiner Date: