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INTRODUCTION
ESSAR OIL LIMITED
Essar Oil Ltd. was started in the year 1994 and it is
currentlyIndias largest corporate houses manufacturing and service
sector
playing vital role in the economic growth of our country.The
proect is progressing with !"" #!sian "rown "overy$Lummus %rest
with a contract of &' ()* +illion. The ,roect-anagement are
done +y Essar ,roects Engineers India Limited/ Tata %onsulting
Engineers.
Essar Oil Limited at 0adinar is headed +y B.K.MUKHERJEE. Ithas
a+out highly efficient and dynamic team of employees +y
positively affecting the society.
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ABOUT ESSAR GROUP
The Essar 7roup is one of Indias largest corporate houses
withinterests spanning the manufacturing and service sectors in
+othOld and ew Economies8 'TEEL ,OE5 ':I,,I7%O'T5&%TIO' OIL /
7!' and TELE%O-.
The 7roup has an asset +ase of &'( 4.4 +n #5s *;; +illion$
and aturnover of over &'( *.;< +n #5s 9= +illion$.'trategic
investmentsmade +y the group over the past decade have resulted in
thecreation of tangi+le and intangi+le assets that are at the :eart
ofIndian Economy.
The group ta>es pride in +eing a high performance
multinationalorgani?ation providing world class services and
products. -anned
+y a highly efficient and dynamic team of employees the group
isgrowing stronger everyday. ! committed corporate citi?en thegroup
provides unwavering support to the community as well asinitiates
various social and ecological drives that have@POSITIVE ATTITUDEon
society.
ESSAR PHILOSOPHY
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The success of @E''!5 75O&,A isdependent on the development
and
reali?ation of potential of each one who is in direct contact
orindirect contacts.
The mindset of 3esterdays managers was to accept compromiseand
>eep things neat / orderly which leads to complacency. eshould
not +e afraid to go against todays currents +ecause we>now that
tomorrow is ours and we must wor> on a vision of what
+usiness can +ecome.
ESSAR MISSION
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The mission of this company is to createenduring value for
customers and
sta>eholders in core manufacturing and service +usinesses
throughworld class operating standards state of art technology
and@,O'ITI0E !TTIT&2EA of our people.
ESSAR LEADERSHIP VALUES
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1. Integrity of all times.
*. 'atisfaction to Internal / EBternal %ustomers.
). 6acilitate all round eBcellence.
4. ,romote Cuality.
=. %ontinuously innovate and create.
D. EBplore growth opportunities in ew Technologies.
. %onstantly focus on %ost reduction.
with @,O'ITI0E !TTIT&2EA.
HRD MISSION
To transform human resources from employee to managementpartner
in achieving +usiness goal. ,roactively create environment
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and wor> with people to providecompetitive edge to the
+usiness for
continuous growth.
%reate a finest learning which would facilitate the acuisition
ofthe reuest >nowledge s>ills and attitudes or competencies
thatwill +ring a+out the +est among our employees
towardsorgani?ational effectiveness.
WORLD CLASS STANDARDS
The E''!5 75O&, insists on setting and surpassing world
class+enchmar>s in everything that they do. o wonder they have
theworlds largest gas +ased sponge iron plant and are one of
theworlds largest integrated sea logistics companies that owns
Indias
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largest dou+le hull dou+le +ottom 0L%%.!ll their +usinesses to
stay strong and agile.
They have invested several +illion dollars on eBclusive state of
arttechnology +ecause they +elieve that it confers strong
strategicadvantage.
CORPORATE OFFICE AND REGIONAL
OFFICE ADDRESS
%orporate Office8F
E''!5 OIL LI-ITE2
-!:!L!G-IE''!5 :O&'E 11 H.H. -!57-!:!L!G-I -&-"!I
4;;;1)4TEL 8F #J91;**$ DDD;11;;K4;;111;;
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5egional Office8F
E''!5 OIL LI-ITE2E''!5 :O&'E1* '!'TIH 'O%IET3 !-!7!5 )D1;;e
up theorgani?ation therefore people are the most significant
resource ofan organi?ation. This resource is called HUMAN
RESOURCE.
!ccording to L. 6. &5I%H 8F
@"usiness houses are made or +ro>en in the long run not
+ymar>ets or capital patents or euipments +ut +y -E of
allresource manpower is the only resource which does notdepreciate
with the passage of time.A
!ccording to 6LI,,O ,ersonnel -anagement or :uman5esource
-anagement is
@The ,lanning Organi?ing 2irecting and %ontrolling of,rocurement
2evelopment %ompensation Integration5etention of :uman 5esource to
the end that individual /societal o+ectives are accomplished.A
E''!5 OIL LI-ITE2 has efficient and effective humanresource
management committee that functions for variousactivities li>e
manpower planning o+ analysis recruitment
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selection placements induction careerplanning training /
development
evaluation of o+ determining wage / salary performanceappraisal
maintenance integration and control.
FUNCTIONS OF HUMAN RESOURCE MANAGER
-!!7E5I!L O,E5!TI0E6&%TIO' 6&%TIO'
1. ,L!I7 1. ,5O%&5E-ET*. O57!I'I7 *. 2E0ELO,-ET
). 2I5E%TI7 ). %O-,E'!TIO
4. %OT5OLLI7 4. IT5E7!TIO
=. 5ET!ITIO
DIAGRAM-8
:uman 5esource ,lanning has +een defined as the process +ywhich
management determines how an organi?ation should movefrom its
current position to its desired manpower position.In the words of
'T!IE5
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@ -anpower ,lanning is the strategy forthe !cuisition
&tili?ation Improvement and ,reservation of anOrgani?ations
:uman 5esource which is aimed at coordinatingthe reuirements for
and ma>ing availa+ility of different types of
employees.A
:uman resource planning is the first and important role
of-anager at E''!5 OIL LI-ITE2 and unless there is strongmanpower
to carry various activities is not possi+le. :ere,lanning is +ased
on various parameters li>e8F
'i?e of Organi?ation
Turnover of company Technology involved !utomation !reas to +e
outsourced on %ore activities outsourced
The planning is +ased on the demand for and supply ofmanpower
availa+le to the company. The planning functions arecarried out in
various departments for the operations and
maintenance activities and are reuired at each and every
level.The manpower currently is nowledge of the nature and
reuirements of o+s to +e filled is essential for determining
the>ind or uality of personnels reuired. 'uch >nowledge can
+eo+tained through the process of O" !!L3'I'.
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o+ !nalysis is scientific and systematicprocess of determining
+y o+servation and
studies the tas>s which comprise the o+ the methods
andeuipments used and the s>ills attitudes reuired for
successful
performance of the o+.
o+ !nalysis is carried out here at E''!5 OIL LI-ITE2. It
is+eneficial to all companies as managers can >now which place
isto +e filled +y which person and it ta>es place +y proving
various
+enefits to the organi?ation which are as follows 8F
6or ,lanning 5ecruitment / 'election
,lacement / Orientation Training / 2evelopment ,erformance
!ppraisal %areer ,lanning o+ Evaluation Employee 5elation :ealth /
'afety purpose
!fter the reuired num+er and >ind of human resource
aredetermined the neBt step in the procurement function is to
locatethe source where from the reuired human resource can
+eavaila+le and to attract them towards the organi?ation. This
is>nown as @5E%5&IT-ETA.
!ccording to 6LI,,O 8F
@5ecruitment is the process of searching for
prospectiveemployees and stimulating and encouraging them to apply
for
o+s in an organi?ationA.
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!t E''!5 OIL LI-ITE2 5ecruitment isa process to discover the
source of
manpower to meet the reuirements of the staffing schedule andto
employ effective measures for attracting that manpower inadeuate
num+er to facilitate effective selection of an efficient
wor>ing force. 5ecruitment needs are of three types 8
,L!E2 !TI%I,!TE2 &EG,E%TE2
,lanned needs arise from changes in organi?ation structure
andpolicy.
5esignations deaths accidents / illness give rise to
&neBpectedneeds.!nticipated needs refer to those movements in
personnel whichan organi?ation can predict +y studying trends in
the internal andeBternal environment.5ecruitment +eing carried out
at E''!5 OIL LI-ITE2 is donethrough either Internal 'ources or
EBternal sources.
RECRITMENT
INTERNAL ETERNAL
SOURCES SOURCES
DIAGRAM-9
SOURCES OF RECRUITMENT
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INTERNAL SOURCE ETERNAL SOURCE
T5!'6E5' !20E5TI'E-ET'
,5O-OTIO' E-,LO3-ETEG%:!7E'
,5E'ET E-,LO3EE' %!-,&' 5E%5&IT-ET
E-,LO3EE 5E6E55!L' %O'<!T'
6O5-!5 E-,LO3EE' %OT5!%TO5'
,5E0IO&' !,,LI%!T' ,L!%E-ET !7E%IE'
5E%O--E2!TIO'
%O-,ETITO5'-E57E5' /!%C&I'!TIO
TABLE-:
The potential applicants send their resume generally through
eFmail that contains personal details professional details
o+ectiveof oining and their eBpectation from organi?ation.
Thusrecruitment is an important process to attract potential
applicantsfor proper o+ and after the recruitment is done the neBt
step is ofselection out of those applicants who have applied for
the
position.
'election is the process of choosing the most suita+le persons
outof all the applicants. In the process relevant information
a+outapplicants is collected through a series of steps so as to
evaluatetheir suita+ility for the o+ to +e filled. 'election is a
process of
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matching the ualifications of applicantswith the o+
reuirements.
@'election is the process of differentiating +etween those
withgreater li>elihood of success for o+. In short it is 5ight
,erson
for 5ight o+ on 5ight Time.A
The 'election procedure is done +y the management group atE''!5
OIL LI-ITE2 which is affected +y the internal oreBternal
environment. The following is the process of selectioncarried
here8F
1. ,5ELI-I!53 ITE50IE*.
E-,LO3-ET ITE50IE). 5E6E5E%E / "!%H75O&24. 'ELE%TIO
2E%I'IO=. O" O66E5D. ,:3'I%!L EG!-I!TIO. E0!L&!TIO
!t each level the applicants may +e selected or reecteddepending
upon the ualifications and potentials to wor> and thusselection
of right person for the right o+ is made in a manner that
proves +eneficial for the wor>ing of the company.
Once an employee has +een selected he should +e placed on a
suita+le o+. ! misplaced employee remains dissatisfied
andfrustrated. !fter placing the selected candidates on proper o+s
itis necessary to ma>e them familiar with the o+ the company
andother employees so that they can feel at home and canconcentrate
on their wor>.
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@,lacement is the process of assigning aspecific o+ to each one
of the selected
candidates. It involves assigning a specific ran>
andresponsi+ility to an individual. It implies matching
thereuirements of o+ with the ualifications of a candidate.A
,lacement at E''!5 OIL LI-ITE2 is done +y the managementteam on
the +asis of reuired wor> and s>ills availa+le from
thecandidates acuired. The o+ective is to place right person for
theright o+ so as to ma>e the organi?ation wor> more
effectivelyand efficiently. ,lacement is matching of what the
supervisor hasreason to thin> he can do with the o+ demands. It
is a matchingof what he imposes in strain wor>ing conditions and
what he
offers in the form of form of payroll companionship with
otherspromotional possi+ilities etc.
,roper placement helps to improve employee morale. It alsohelps
to reduce employee turnover a+senteeism and accidentsrates. If a
candidate adusts himself to the o+ and continuous to
perform as per eBpectations it might mean that the candidate
isproperly placed. :owever if the candidate has pro+lems inadusting
himself to the o+ and he continues to perform +elow
eBpectations he might +e misplaced. 'upervisorsKEBecutives
should review all such cases to find out cases of
misplacement.'uch candidates should +e assigned some other more
suita+le
o+s. !lternately they may +e given further trained to ma>e
themfit for o+. This method is carried out at E''!5 OIL
LI-ITE2.
hen a new employee oins an organi?ation he is completely
astranger to the people wor> place and the wor>
environment.Therefore he is li>ely to feel insure shy and
nervous. :e mayundergo reality shoc> caused +y a gap +etween his
eBpectationsand the real situation. Induction or Orientation can
overcomethese pro+lems.
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@Once an employee is selected and placedon appropriate o+ the
process of familiari?ing him with the o+and organi?ation +egins.
This process is called I2&%TIO orO5IET!TIO.A
Induction ta>es place here at E''!5 OIL LI-ITE2 for
ma>ingthe employees familiar with how the wor>ing of the
companyta>es place. The induction program is of 1= days either
organi?edat the 5E6IE53 'ITE or at E''!5 OIL %L&". !ll
facilitiesli>e accommodation transport and all >inds of
refreshments are
provided +y company on the its cost. It covers all the maor
areasof management made familiar and all other departments and
units
wor>ing in the company from where they procure it till
thedispatch of the final product all activities that are carried on
+ythe company is descri+ed during the induction process.
In short it descri+es everything in detail how the
organi?ationwor>s and how does it contri+utes in the development
of its
people and company at large on whole develops the country.There
are not only live presentations given +ut the employees arealso
ta>en at the refinery sites where different units through
which the products will +e processed are shown and its process
is
eBplained +y the tas> assigned to the officer. 2uring this
processthe employees are ta>en for the ETT3 0I'IT at 0!2I!5.
ormally employees want to advance and grow in their careers.
-ost individuals develop uite early in life an idea or a
mentalimage of what career they would li>e to pursue.
&nlessorgani?ation meets these desires and aspirations of its
employeesit cannot ma>e optimum use of its human resource.
%hangingeBpectations of employees and the organi?ation creates
conflicts
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and +y this the organi?ation cannot attainhigher level of
efficiency and
effectiveness
%areer ,lanning is the systematic process +y which one
selects
career goals and the path to these goals. It means helping
theemployees to plan their career in terms of their capacities
withinthe conteBt of organi?ations need.
!t E''!5 OIL LI-ITE2 %areer ,lanning is done for thedevelopment
of their employees and to widen the scope ofwor>ing of them. It
is carried out with the respect of people to
perform well +y focusing more on training programs and give
them more opportunities for growth and gets eBposed to all
thedifferent areas of the refinery and its wor>ing and to +e
morecompetitive and have +etter career and growth
opportunities.
Training is the process of increasing the >nowledge and
s>ills fordoing a particular o+. It is organi?ed procedure +y
which peoplelearn >nowledge and s>ill for definite purpose.
The purpose is to
+ridge the gap +etween o+ reuirement and present competenceof an
employee.
Training may +e defined as any process +y which the
aptitudes>ill and a+ility of employees to perform specific o+
areincreased. Training helps the employees to do their o+ well
avoid wastage of resources improve +y uality and uantity
andreduce the chances of accidents +y ta>ing proper steps.
Training of employees ta>es place at E''!5 OIL LI-ITE2
withthe o+ective to improve the performance of its employees so
thatthey can contri+ute +etter wor>ing of the company. It is
carriedwith respect of people to perform well +y focused
training
programs that give opportunity to eBpose to different areas and
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wor>ings and get maBimum +enefits +ysuch programs in order to
face the
competitive corporate world.
There are different training methods that are carried on to
improve the efficiency productivity increase the s>ills so
thatthey can get promotion and can develop potentialities. 'ome
ofthe methods are as follows8F
I2&%TIO T5!II7 O T:E O" T5!II7 ,5O-OTIO T5!II7 5E65E':E5
T5!II7
0E'TI"&LE T5!II7 !,,5ETI%E':I, T5!II7 %L!'' 5OO- T5!II7
ITE5':I, T5!II7 %5O'' 6&%TIO!L T5!II7 :E!LT: '!6ET3 E0I5O-ET /
6I5E #:'E6$
:ere at E''!5 all of these methods are carried as per
thereuirement and the purpose to +e fulfilled. -a>ing the
employees aware a+out the internal as well as glo+al
changes.,rograms to develop the s>ills of the employees are also
done.
There cannot +e training for the top level eBecutives or
managersso for them there are development programs. The success
and
growth of an organi?ation depends largely upon the cali+er
andperformance of its eBecutives. It is essential to train and
developeBecutives who can succeed the managers of today.-anagement
2evelopment includes the process +y whichmanagers and eBecutives
acuire not only s>ills and competencyin their present o+s +ut
also capa+ilities for future managerial
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tas>s of increasing difficulty and scope.Thus eBecutive
development is any
planned effort to improve current and future
managerialperformance.
E''!5 has effective system for succession planning andmanagement
development programs that covers +oth eBecutiveand senior
management succession and development. The +oardreviews the
outcomes annually and actions arriving from thereview are
implemented as part of management developmentagenda. It helps the
managers to develop the s>ills on8F
Idea a+out the production process to have innovation and
creativity in wor>. 6or developing managerial s>ills to
achieve the goals and
targets set +y the company To develop the personality +y
organi?ing personality
development programs and to over come the pro+lems thosecome on
the way and develop so as to contri+ute in ma>ingfeel proud.
! sound wage and salary structure is one of the preFreuisites
of
good employerFemployee relations. In order to develop such
astructure it is essential that pay related with the nature and
worthof the o+. It is also essential to maintain proper
differentials
+etween compensation for various o+s. ,ay differentials need
to+e related with differentials in the value of different o+s.
The
relative worth of a o+ can +e udged with the help of o+
evaluation.
!ccording to International La+or Office 8F'T&23 O ,E56O5-!%E
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@o+ Evaluation is an attempt to determineand compare the demands
which the normal performance of a
particular o+ ma>es on normal wor>ers without ta>ing
intoaccount the individual a+ilities or performance of
wor>ers
concerned.A
The "ritish Institute of -anagement defines8F
@o+ Evaluation as the process of analysis and assessment of
o+sto ascertain relia+ly their relative worth using the assessment
asthe +asis for a +alanced wage structure.A
o+ Evaluation at E''!5 OIL LI-ITE2 is +ased on the
differentlevels or positions that are reuired for various
departmentswhich is in terms of num+er of the vacancies availa+le
at which
position of what >ind the nature of wor> to +e assigned to
whomin which manner the level of competencies reuired for
thedifferent positions. !s yet there is no method adopted +y
themanagement +ut there is evaluation done on the +asis of
certain
point rating system li>e grading the efficient and
effectivewor>ing of the employee and to reward in some manner so
as to
increase the efficiency to perform even more +etter every
time.
The payment of salary is an important activity of
anyorgani?ation to ma>e the employee more efficiently and
tomotivate them through monetary +enefits so as to increase the
performance in +etter way. It is not the only monetary +enefit
to
+e given +ut non monetary +enefits are also give to improve
theemployees performance.
@'alary may +e defined as the monthly +enefit to the
clericaladministration and professional employees.A
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!t E''!5 payroll administration ishandled very efficiently and
is effective in
nature. The payment of the salary is according to the
designationor the level which is given to each employee that is
from -F1 toTF*. !t each of this level the payroll is different as
the assigned
wor> and as> differ and every level has fiBed payroll.
Theminimum or maBimum salary is decided +y the management. 6oreach
employee there is separate file prepared +y the company
thatcontains all the details regarding the employee all
personaldetails his ualifications medical reports confirmation
letter +ythe company. One of the most important is the payroll slip
and itsletter which is called %.T.%.#%O'T TO %O-,!3$
%T% are the eBpenses incurred +y the company on the
employeeeither for training or development that includes the
salaryeBpenses traveling eBpenses hotel accommodations and
foodeBpenses that are incurred on employee for any reason. The
%T%changes with the level of responsi+ility assigned to an
employeeand as the person moves up +y getting promotions. It
alsoincludes medical reim+ursements if any which is given with
thesalary. It also has a fiBed level of mo+ile charges given to
the
employees according the level and reuirements certain amount
isdeducted from the salary for that purpose also it deducts
certainfiBed amount for the @'O2EG :OA pass. It is facility
providedfor the payments where they are accepted at different
provisionstores or hotels or departmental stores.The %T% contains
the following details in it 8F
"asic 'alary :5! #:ouse 5ent !llowances$ 'pecial !llowances
-edical !llowances Oil / ,etrol !llowances 6ood %oupons Telephone
EBpenses
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Entertainment EBpenses %onveyance %ar operating
LT! ,6 '!
6"T
6or the employees wor>ing over time there is no provision
ofeBtra salary +ut they are provided +y some refreshments.
'alaryadministration is highly complicated area and utmost care is
to +eta>en for the payments. They are all recorded in form of
file andare also stored in the computer there are reductions
whenever theemployee is given advances for special purposes and in
case of
emergency and reim+ursements are given. The salary is also+ased
on the attendance of the employees for which attendancemuster is
>ept and also recorded and stored in computer. Thesalary gets
credited in the account of the employees at the end ofmonth and
+efore the th day of neBt month and thus thefunctioning is going on
very smooth and on regular +asis that
proves +eneficial for the employees and company at large.
Then goes the ,erformance !ppraisal which is descri+ed in
detail
in the report. !fter acuiring the reuired num+er of employeesand
providing them with their respective roles to wor>ed out it
isessential to >eep them wor>ing with the organi?ation that
is tomaintain them so that they do not leave the organi?ation and
goaway.
:ere at E''!5 the employees needs are ta>en care of in
very
+etter way. To maintain employee with the organi?ation is
verydifficult tas> as the nature of its employees >eeps
changing +uthere for the purpose of maintaining is done +y
5ET!ITIOwhich is +ased on the engagement level of employee that
isensured well in advance if the level found high then in terms
of
+asic necessities that are reuired to perform the o+ is
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+ut also periodical recognitions andrewards are given and if the
level is found
to +e low then for that periodical learning and development
isdone +y cross functional methods o+ attentions is made +y
thesuperiors and the head of the departments and thus +y this
the
employees are >ept with the company and all
refreshmentfacilities are provided li>e for the housing
employees areaccommodated at E''!5 TO':I, while some at!-!7!5. !ll
the +asic facilities are provided also leaves aregranted to refresh
themselves parties and carnivals are made inorder to have get
together and enoy themselves. 5ecently theyhad organi?ed E''!5
%!5I0!L dine and dance party at'&--!I5 %L&" that was for
the employees and their families
also E''!5 L!2IE' %L&" has +een started for the spouses
ofthe employees so that they too can have +etter time spending
witheach other and can have fun and enoy and various other
activitiesare carried +y them.
The efficiency of employees depends to a great eBtent on
theenvironment in which they are wor>ing. or>
environmentconsists of all the factors which act and react on the
+ody andmind of an employee. &nder industrial psychology the
physical
mental and social conditions in which the people wor>
areanaly?ed to suggest improvements in them. The aim +ehind is
tocreate an environment which ensures the greatest ease of
wor>and removes all the causes of annoyance anBiety and worry.
Ifthe wor> environment is congenial fatigue monotony and
+oredom are minimi?ed and wor> performance can
+emaBimi?ed.
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75IE0!%E
7rievance means any real or imaginary feeling of
dissatisfactionand inustice which an employee has a+out his
employmentrelationship.
@7rievance is any dissatisfaction or feeling of inustice
inconnection with ones employment situation that is +rought to
theattention of management.A:ere at E''!5 the grievance that is
handled is and open handedthat anyone can easily come and convey
their pro+lems which is
+rought to the attention of the management and is tried to
+eresolved while it is at its minimum level.
%OLLE%TI0E "!57!II7
hen any dispute that may arise due to any reason
therepresentatives of employer and of the employees meet
andnegotiate a contract governing the employer employee
unionrelationship.:ere at E''!5 there is nothing li>e collective
+argaining ta>ing
place as yet.
I2&'T5I!L 5EL!TIO
Industrial relations mean the relationships +etween employersand
employees in industrial organi?ation. The term refers to thewhole
field of relationships among people human relations that
eBists +ecause of the necessary colla+oration of men and womenin
the employment process of modern industry. :ere at E''!5 the
atmosphere is very friendly and homelywhere the employees are
interactive with each other even with themanagers the relation is
very friendly. Industrial relations are notonly with the employees
+ut also with government employment
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associations trade unions courts andtri+unals which is uite good
in the matter
where E''!5 is concerned.
I2&'T5I!L 2I',&TE'
6or any +usiness unit wor>ing it has to have +etter
industrialrelations of that +etween employerFemployee
employeeFemployee and employeeFwor>ers.
:ere at E''!5 there are no such industrial disputes and they
areto +e avoided so as no chaos ta>ing place to have +etter
and
positive functioning of all managerial as well as operating
activities
-aintaining control over the operations is an important
functionof every manager. It is the duty of the personnel manager
toevaluate periodically how effectively the human resource are
+eing utili?ed for eBercising personnel control personnel
recordsreports research and audit are reuired. This is the main
tools of
personal control.
:ere at E''!5 personnel control is part of recruitment
processand planning of the manpower reuired that is +eing carried
out.There should not +e any vacancy or gap in the positions nor
thereoverflow for which personnel control is managed +y
themanagement. ,ersonnel records are stored in computers and inform
of files here research does not ta>e place and the audit isdone
internally.
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Thus we can state in short that followingare the activities that
are underta>en at E''!5 OIL LI-ITE2!-!7!5 which goes in proper
seuence which is asfollows 8F
1. :&-! 5E'O&5%E ,L!I7*. O" !!L3'I'). 5E%5&IT-ET4.
'ELE%TIO=. ,L!%E-ETD. I2&%TIO. %!5EE5 ,L!I7
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PPR IS L OF
PERFORMANCE APPRAISAL
!ppraisal of performance is widely used in todays
corporateworld. Early appraisal system was called merit rating.
,erformance appraisal techniues +egan to +e used for
technicalprofessional and managerial personnel. 'ince then
tremendouschanges have ta>en place in the concept techniues
and
philosophy of employee appraisal.
!n organi?ations goals can +e achieved only when people put
intheir +est efforts. ow how to ascertain whether an employee
hasshown his or her +est performance on a given o+P The answer
is,erformance !ppraisal. Employee assessment is one of
thefundamental o+s of :5- +ut not an easy one so we shall
>nowthe detailed discussion of the nature and process of
conducting
performance appraisal.
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MEANING DEFINITION "-
In simple terms performance appraisal may +e understood as
theassessment of an individuals performance in a systematic waythe
performance +eing measured against such factors as o+
>nowledge uality and uantity of output initiative
leadershipa+ilities supervision dependa+ility coFoperation
udgmentversatility health and the li>e. !ssessment should not
+econfined to past performance alone. ,otentials of the employeefor
future performance must +e assessed.
,erformance !ppraisal is an o+ective assessment of anindividuals
performance against well defined +enchmar>s.
@,erformance !ppraisal is the systematic periodic and
animpartial rating of an employees appraisal eBcellence in
matters
pertaining to his present o+ and his potential for a +etter
o+.A
RELATIONSHIP OF PERFORMANCE
APPRAISAL AND JOB ANALYSIS
JOB ANALYSIS PERFORMANCEAPPRAISAL
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PERFORMANCE STANDARDS
DIAGRAM-7
Employee assessment is as old as the concept of managementand in
an informal sense it is pro+a+ly as old as man>ind. or
performance appraisal is done in isolation. It is lin>ed to
o+analysis as the diagram states.
o+ analysis descri+es wor> and personnel reuirement of
aparticular o+. ,erformance appraisal descri+es the o+Frelevant
strengths and wea>ness of each individual and it is
connectedwith performance standards that translate o+s reuirements
intolevel of accepta+le or unaccepta+le performances.
,erformance appraisal aims at8F
To effect promotions +ased on competence andperformance To
confirm the services of pro+ationary employees upontheir completing
the pro+ationary period satisfactorily To decide upon the pay rise
where regular pay scales havenot +een fiBed. To assess the training
and development needs of employees. To let the employees >now
where they stand in so far astheir performance is concerned and to
assist them withconstructive criticism and guidance for the purpose
of theirdevelopment
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To improve communication +etweensupervisorFsu+ordinate and have
+etter
understanding of achieving of personal goals and concerns
thusincrease the trust +etween the rater and the ratee To provide
feed+ac> to the employees
To provide a valid data +ase for personnel decisions To diagnose
the strengths and wea>ness of individuals To provide coaching
counseling career planning andmotivation. To develop positive
superior su+ordinate relations To test the effectiveness of
recruitment selection trainingtransfers placement and induction
programs."roadly performance appraisal serves four o+ectives8F
1. D*+*$*(/ &)*) "
Identification of individual needs ,erformance feed+ac>
2etermining transfers and o+ assignments Identification of
individual strength and development needs
*. A%,,)(#/(,+* U)*);D*',),$) "
'alary ,romotion 5etention or termination 5ecognition of
individual performance LayFoffs Identification of poor
performance
). O#3/,
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:5 ,lanning 2etermining training needs Evaluation of
organi?ational goal achievement Information of goal
identification
Evaluation of :5 systems 5einforcement of organi?ational
development needs
4. D$'&*(/(,$ "
%riteria for validation research 2ocumentation of :5 decisions
:elping to meet legal reuirements
Thus the data relating to performance assessment of employeesare
recorded stored and used for several purposes. :ere atE''!5 OIL
LI-ITE2 the performance appraisal is carried on ina systematic way
and proves fruitful for the growth anddevelopment of its employees.
The information are recorded and
stored in the computers as and when an employee wants to
chec>heKshe can go through it and get necessary information and
isvery safe and effective as compared to >eeping all details
filed inform of reports of papers or files.
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PERFORMANCE APPRAISAL AND
COMPETITIVE ADVANTAGE
The o+ective of performance appraisal points out the
purposeswhich such an eBercise see>s to meet. hat needs emphasis
isthat performance evaluation contri+utes to firms
competitivestrength. "esides encouraging high levels of performance
theevaluation system helps identify employees with potentialreward
performance euita+ly and determine employees need for
training. 'pecifically performance appraisal helps
anorgani?ation gain competitive edge in8F
Improving ,erformances
-a>ing %orrect 2ecision
Ensuring Legal %ompliance
-inimi?ing o+ 2issatisfaction and Turnover
%onsistency "etween Organi?ational 'trategy and"ehaviuor
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Organi?ational 0alues and"ehaviuor
,erformance !ppraisal offers competitive advantage to a firm
+y improving performance helping ma>e correct
decisionsensuring legal compliance minimi?ing o+ dissatisfaction
andemployee turnover and ensuring consistency +etweenorgani?ational
strategy and +ehaviuor.
APPRAISAL PROCESS
The performance appraisal process follows a set pattern and
itconsists of the following steps8F
1. ESTABLISHING PERFORMANCESTANDARDS. "-The process starts with
the setting up of criteria to +e used forappraising the performance
of the employees. The criteria are
specified with the help of o+ analysis which revels the
contentswhich should +e clear o+ective and in writing. The
personalcharacteristics which contri+ute to employee performance
must
+e determined. In addition who is to do the appraisal and
howfreuently is to +e done should +e decided thus the
performancestandards will depend upon o+ectives of appraisal.
2. COMMUNICATING STANDARDS "-The performance standards specified
in the first step arecommunicated and eBplained to the employees so
that they cometo >now what is eBpected from them and if reuired
feed+ac> ista>en into consideration and it is revised and
modified.
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!. MEASURING THE
PERFORMANCES "-hen the standards are specified and accepted the
neBt stage isthe measurement of actual performance this reuires
choosing theright techniue of measurement identifying the eBternal
andinternal factors influencing performance and
collectinginformation on results achieved which should +e in
written and
personal o+servations should also +e considered.
8. COMPARING THE ACTUAL WITH THE
STANDARDS "-!ctual performance is compared with the
predetermined
performance standards. The optimum level of comparison should+e
made with the standards.
9. DISCUSSING THE APPRAISAL "-The results of the appraisal are
communicated and discussed with
the employees.
:. TAKING CORRECTIVE ACTIONS "-Through mutual discussion with
employees the steps reuired toimprove performance are identified
and initiated. Trainingcoaching counseling are eBamples of
corrective actions that helpto improve performance.
WHOSE PERFORMANCE SHOULD BE
RATED??
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:ere at E''!5 OIL LI-ITE2 the veryo+vious answer that the
employees are
rated it can +e individual or team.
WHO ARE RATERS??
:ere at E''!5 OIL LI-ITE2 the raters are immediatesupervisors
specialists from :5 department su+ordinates peerscommittees clients
selfFappraisals or a com+ination of severaltype.
WHAT SHOULD BE RATED??
:ere at E''!5 OIL LI-ITE2 one of the steps in designing
anappraisal programme is to determine the evaluation criteria
whichshould +e related with the o+ which are 8F
1. @UALITY
2. @UANTITY
!. TIMELINESS
8. COST OF EFFECTIVENESS
9. NEED FOR SUPERVISION
:. INTERPERSONAL IMPACT
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PROBLEMS IN PERFORMANCE APPRAISALAT
ESSAR OIL LIMITED
1. E55O5' I 5!TI7
:!LO E66E%T 'TE5EOT3,I7 %ET5!L TE2E%3 %O'T!T E55O5 ,E5'O!L "I!'
',ILL O0E5 E66E%T
2. L!%H O6 5ELI!"ILIT3
!. I%O-,ETE%E
8. E7!TI0E !,,5O!%:
9. -<I,LE O"E%TI0E
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:. 5E'I'T!%E
7. L!%H O6 HOLE27E
ESSENTIALS OF AN EFFECTIVE
PERFORMANCE APPRAISAL SYSTEM
To +e effective a performance appraisal system should satisfy
thefollowing reuirements8F
1. -&T&!L T5&'T
2. %LE!5 O"E%TI0E'
!. 'T!2!52I'!TIO
8. T5!II7
9. O" 5EL!TE2E''
:. 2O%&-ET!TIO
7. 6EE2"!%H / ,!5TI%I,!TIO
. I2I0I2&!L 2I66E5E%E'
. ,O'T !,,5!I'!L ITE50IE
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10. 5E0IE !2 !,,E!L
METHODS OF PERFORMANCE APPRAISAL
'everal methods and techniues are used for evaluating
theperformance of the employee which is classified into two
+roadcategories which are 8F
,ast Oriented -ethods
6uture Oriented -ethods
,ast Oriented -ethods includes the following 8F
1. 5!TI7 '%!LE2. %:E%HLI'T!. 6O5%E2 %:OI%E -ET:O2
8. 6O5%E2 2I'T5I"&TIO -ET:O2
9. %5ITI%!L I%I2ET' -ET:O2:. "E:!0IO&5!LL3 !%:O5E2 5!TI7
'%!LE'7. 6IEL2 5E0IE -ET:O2. ,E56O5-!%E TE'T' !2 O"'E50!TIO'.
%O6I2ETI!L 5E%O52'10. E''!3 -ET:O2
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11. %O'T !%%O&TI7 -ET:O212. %O-,!5!TI0E E0!L&!TIO
!,,5O!%:E'1!. 5!HI7 -ET:O2'18. ,!I5E2 %O-,!5I'O -ET:O2
6uture Oriented -ethods includes the following 8
1. ,'3%:OLO7I%!L !,,5!I'!L
2. !''E''-ET %ET5E'
!. )D;F2E75EE 6EE2"!%H
8. -!!7E-ET "3 O"E%TI0E'
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MANAGEMENT BY OBJECTIVES
,eter 6. 2ruc>er gave the concept of -.".O. first to the
worldway +ac> in 19=4 when his The ,ractice of -anagement
wasfirst pu+lished. It reflects a management philosophy whichvalues
and utili?es employee contri+utions. -.".O. in
performance appraisal is recent thin>ing. It involves four
stepsthat are to +e followed +ut this method is also critici?ed. It
is
not applica+le to all o+s in organi?ation >eeps
changinguseful for managerial functions only.
This is the newly developed method of performance appraisaland
it covers all aspects. !s the name suggests the appraising is
+ased on the o+ectives set with the performance outsourced.
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M.B.O. PROCESS
The process of -"O is carried out in the following manner8F
!. SET GOALS "- 'uperior / 'u+ordinate managers ointlyidentify
its common goals.
". DEFINE TARGETS "- :ere individuals maor role or areasof
responsi+ility in terms of results eBpected from him is done.
%. REVIEW "- :ere for assessing the contri+ution of each one
isdone.
2. FEEDBACK "- !fter all the assessment is done it is
necessaryto provide the feed+ac> to the employee as to how is
the
performance done and to appraise it.
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PROCESS OF
PERFORMANCE APPRAISALTHROUGH M.B.O AT
ESSAR OIL LIMITED
1. NATURE OF GOALS "-a. %lear / measura+le+. %lear lin>age
+etween organi?ational goals and performance
targets for an employee.c. 7oalKtargets determined +efore
appraisal period +eginsd. %hec>points set up to measure
processe. 6ocus on results to +e achieved rather than on
activities
*. EVALUATION PROCESS "-a. ,eriodic reviews of performance
rather than yearly review+. 6ocus of review on performance or
results achieved
). ROLE OF EMPLOYEE "-a. !n employee active participate in goal
setting and
performance appraisal process rather than a passive o+server+.
,lays a >ey role in all o+ related decisions
4. NATURE OF CONTROL "-a. 6ocus on future rather than on post or
present+. !ppraisal interview has pro+lem solving approachc.
6reuent feed+ac> for self control
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=. ROLE OF EVALUATOR "-a. 'erves as a coach and counseller+.
'upportive rather than udgmental rolec. 'ee>s development of an
employee rather than faults.
:ere at E''!5 OIL LI-ITE2 the performance appraisal thatta>es
place is done +y the management or +usiness head ordepartment. The
process ta>es place at different level. Theo+ective is to have
an over all development of employees>eeping in mind the
standards set +eforehand. The method that is
carried out for the purpose of performance appraisal is done
+y-!!7E-ET "3 O"E%TI0E' #-"O$ the performanceappraisal is +ased on
the ualitative and uantitative approach.The process is an on going
process that is continuous in natureand the method is not fiBed it
changes with the changes in time.There is no specific time reuired
to carry out the process and theenergy spend on it. The goals that
are set are of '-!5T nature.
' Q ',E%I6I%- Q -E!'&5!"LE! Q !%:IE0!"LE5 Q 5E!LI'TI%T Q
TI-E "O&2
The goals are set in order to fulfill them for the
+usinesso+ectives. The goals that are set which defines the role
that is to
+e performed +y the employees is structured and made clear
towards attaining the end results. The o+ectives of
thedepartment as well as that of the employees are integrated for
thefulfillment of organi?ation o+ectives. The involvement level
ofthe employees is very high though this method. The appraisingdone
up to the level - 1 to - is done individually where as
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from - < and a+ove have to perform in team and are
appraisedin team. The appraisal is carried out in mid year that is
every siB
months and +y this the relation with the employees is sound
andeffective which strengthens the wor>ing of employees
andcontri+utes at large for the development and success of
company.
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CHALLENGES OF
APPRAISAL FACED BY
MANAGER
AT
ESSAR OIL LIMITED
ith the development and continuous changes in the corporateworld
there are many challenges in front of manager that are to +efaced
strongly. 6or -anager of :5 many such challenges are to
+e faced and an important one is that of challenges
inperformance appraisal of the employees of company. Ta>ing
intopresent position and situation and future scope the following
are
the challenges +eing faced +y manager while rating
theperformance of its employees 8F
%reate a culture of eBcellence that inspires everyemployees to
improve and lend himself or herself to +e assessed !lign
organi?ational o+ectives to individual aspirations %lear growth
paths for talented individuals ,rovide new challenges to reuvenate
careers that have
reached the plateau stage 6orge a partnership with people for
managing theircareers Empower employees to ma>e decision without
the fearof failing Em+ed teamwor> in all operational processes
2e+ureaucratise the organi?ation structure for ease offlow of
information
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HOW IS ESSAR AHEAD OF
OTHERS
E''!5 OIL LI-ITE2 is emerging in various fields li>e
'TEEL
,OE5 OIL %O'T5&%TIO ':I,,I7 TELE%O- thus+y this we can say
that the future of this company is very +rightand with its
@,O'ITI0E !TTIT&2EA it will definitely progress inwhich ever
fields it will wor> out its activities.
The "lac> 7old has already entered in the field and is
+eingproduced on large uantity and is ready for the dispatch in
theworld mar>et +y its retailers and whole sellers and all its
units arestarted and ma>es it a grand success for the company
for itscommissioning.
COMPETITORS "
!mong its competitors there is 5ELI!%E ,ET5OLE&-LI-ITE2 I2I!
OIL %O5,O5!TIO I2I! ,ET5O
%:E-I%!L' LI-ITE2 7!' !&T:O5IT3 O6 I2I!LI-ITE2 OIL /
!T&5!L 7!' %O5,O5!TIO:I2&'T! ,ET5OLE&- ":!5!T
,ET5OLE&- etc. thatare doing the same type of +usiness as that
of E''!5 OILLI-ITE2 +ut there is a thing that ma>es it different
from othersand that is the wor> culture which consists of
masteringfundamentals continuing education / learning empowerment
of>nowledge s>ills attitudes trust initiative / innovations
team
wor> integrity and most importantly its
@,O'ITI0E!TTIT&2EA.
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It adopts the latest methods of planningrecruiting selecting
imparting training and development appraisethe performance of its
employees control over personals etc.which is not found suita+le
and successful in all such gaint
companies to maintain the uality name and fame in the
corporateworld within a short span of time. These are some areas
that ma>e@E''!5 OIL LI-ITE2 !:E!2 O6 OT:E5'A.
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CONCLUSION
Last +ut not the least the training period was a golden time
that wespend successfully +y +eing a part of such of giant group
there wasa point of time when E''!5 was under many +ad
circumstances
+ut now today when we loo> +ac> we find that with a little
firmdetermination hard wor> and of course @,O'ITI0E
!TTIT&2EAnothing is impossi+le. 'truggle is part and parcel of
life it is howwe over come it with our strengths and courage and
face allcircumstances and fight against wrong. e would li>e to
concludethe proect +y descri+ing that @inners do not do different
things
+ut they do things differentlyA the +est eBample is E''!5
OILLI-ITE2 and the E''!5 75O&, at large who follows of
doing
things differently and +e a winner in whatever they do and we
wishall the +est and success to the company for its +etter progress
andto >eep up the ,O'ITI0E !TTIT&2E and wor> in order
tocontri+ute to the development of its people society and country
atlarge.
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RECOMMENDATIONS FOR
THE COMPANY
!s such the company has ust recently started with its
commissioning of its units +ut for its +etter and +right future
wewould li>e to give my feed+ac> and suggestions to the
company sothat it can also shine li>e 5ELI!%E I2&'T5IE' one
of its
+iggest and strongest competitors and to develop and eBpand
moreof it worldwide 8F
To develop +etter infrastructure of the refinery site There
should +e computeri?ed attendance system so it saves
time and energy of its employees %omputeri?ed Identity %ard
system %amera system to +e installed in each and every
department
to >eep and eye on the movements of employees
wor>erstransportation etc.
Induction for non technical employees over and a+ove7ET'
Induction should +e more of practical >nowledge than
theoretical lectures. Induction and Training period for longer
time. o+ 5otation should +e made possi+le so as the employee
does not get tedious of same wor> yet get >nowledge in
allother fields and get speciali?ed
'hift wor> for non technical employees not only for thepeople
of operation department
5egular health and medical chec> up of all employees and
family mem+ers free of cost %lu+s and 5efreshment %enters for
the children of employees 2evelop and Introduce 'pecial Economic
Mone ,roper etty site to +e developed
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o pressuri?ing of employees for thewor> which heKshe is not
a+le to
perform 7et more recruitment of young and talented women.
-a>e more of eBports and minimi?e the imports of crude and
try to get it made availa+le from India %ontri+ute in the growth
of near +y areas +y more
employment generation 2evelop other sectors where company is
involved %ontri+ute in the economic growth +y increasing the
national
income and per capita income of country "e successful in what
ever activities are +eing carried out
If some of the a+ove mentioned suggestions are underta>enthen
the company will definitely shine out li>e the 5eliancedid and
will set an eBample for others to develop in thissector with
healthy competition and to >eep up its@,O'ITI0E !TTIT&2EA
always alive.
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APPENDI
SR. NO. PARTICULARS PAGE
NO.1 LEVELS OF MANAGEMENT
TABLE- 2
12
2 ORGANISATION STRUCTURE
FLOW CHAT-!
1!
! ORGANISATION CHARTFLOW CHART-1
2!
8 FUNCTIONS OF HUMAN
RESOURCE MANAGERDIAGRAM-8
2:
9 TYPES OF RECRUITMENT
DIAGRAM-9
2
: SOURCES OF RECRUITMENT
TABLE-:
!0
7 RELATIONSHIP OF
PERFORMANCE APPRAISAL JOB
ANALYSIS
DIAGRAM-7
8:
BIBLIOGRAPHY
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There were many useful +oo>s which hashelped us to prepare
the this proect some
of the theoretical >nowledge is imparted +y these +oo>s
which areuseful even at the -.".!. levels along with the
practical>nowledge acuired at the company and the names of the
+oo>s
are 8F
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