A Study of Performance Appraisal System for Executives

A study of the performance appraisal system for executives. 1

Summer Internship Project Report

On

“A study of Performance Appraisal System for

executives”

At Hindustan Aeronautics Limited, Bangalore.

Presented to

INDIAN BUSINESS ACADEMY

On

June 4 , 2007.

In Partial fulfillment of the requirements for the Managerial training

course in the Post Graduate Programme in Management 06-08

By

Ms. Puspanjali Das

FPB 0608/039


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

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

Mr. Manish Jain, CEO, Indian Business Academy

INDIAN BUSINESS ACADEMY Lakshmipura, Thataguni Post

Kanakpura Main Road,

Bangalore – 560 062

INDIA

Tel: +91-80-28435931/32/33/34

Fax: +91-80-28435935


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

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

Prof. Subash Sharma, Dean, Indian Business Academy




INDIA

Tel: +91-80-28435931/32/33/34

Fax: +91-80-28435935


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

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

Prof. Parul Goil, Mentor, Indian Business Academy




INDIA

Tel: +91-80-28435931/32/33/34

Fax: +91-80-28435935


Student Declaration I, Ms. Puspanjali Das, the undersigned, a student of Indian Business Academy, Bangalore, declare that this project report titled “A study of

performance appraisal system for executives”, is submitted in partial fulfillment of the requirement for the summer internship project during the Post Graduate Programme in Management, a prestigious Post Graduate Programme awarded by Indian Business Academy, Bangalore. This is my original work and has not been previously submitted as a part of any other degree or diploma of another Business school or University. The findings and conclusions of this report are based on my personal study and experience, during the tenure of my summer internship.

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




INDIA

Tel: +91-80-28435931/32/33/34

Fax: +91-80-28435935


About the learner: I am Puspanjali Das. I have done my graduation in Economics from Khallikote College, Berhampur (Orissa). Currently I am pursuing my masters (Masters in Business Administration) from Indian Business Academy, Bangalore (Karnataka). My specialization would include HR & Marketing. I have one year of work experience as a “Faculty cum counselor” in an upgrowing management coaching institute. This was a wonderful opportunity for me to learn methods of convincing and motivating people.

Preface: Hindustan Aeronautics Limited (HAL) came into existence on 1st October 1964. The Company was formed by the merger of Hindustan Aircraft Limited with Aeronautics India Limited and Aircraft Manufacturing Depot, Kanpur. The Company traces its roots to the pioneering efforts of an industrialist with extraordinary vision, the late Seth Walchand Hirachand. Today, HAL has 16 Production Units and 9 Research and Design Centres in 7 locations in India. My project included a thorough study of the performance appraisal system of the company and give them feedbacks about the system. Mentor and guide for this project was Mr. A.K Nanda, who was the chief manager P& A in the company. This report will be resourceful to those who intend to know the performance appraisal system in practical. This project also emphasizes on the format followed in the company. As this company followed a quarterly task setting and evaluation on a quarterly basis, so it gives a detail analysis of the long procedure.

Study methodology: Steps involved in this study:

1. Gathering of the required information for the analysis purpose. 2. Verifying the collected format with my mentor. 3. Clarifying my doubts regarding the system. 4. Interacting with some of the employees about their views about the system. 5. Giving detail of the feedback given my employees of the company to my mentor. 6. Identifying the loopholes and discussing them with my mentor.

Limitations:

1. Within a shorter period of time it is very difficult to study in depth about such a vast topic.

2. Certain matters are confidential which is not revealed by the company. 3. Information may not be 100% accurate. 4. Analysis & comparison made by a student not a professional expert.


Acknowledgement

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


Executive summary:

Hindustan Aeronautics Limited (HAL) indisputably is an Asian aerospace giant, with 16

production units and nine research and design centres spread across seven locations in

India. It has its headquarters in Bangalore.

HAL is mainly invovlved in designs, manufactures, repairs, and over-hauls aircrafts,

helicopters, aero-engines, avionics, instruments, and accessories. The company also

designs, manufactures, and maintains aerospace defense equipment. In addition, it

develops software for aerospace application and provides design consultancy services.

The company also conducts research and development programs for the military and civil

aviation sectors.

Since its inception, 1964, it has pioneering efforts in strategic Human Resource

Development (HRD) goal of the company.

The performance appraisal system emphasizes on the value adding services rather on

daily routine activities. Giving slow performers necessary training and high performers

growth opportunity has been a continuous procedure all these years. The other HRD Plan

also includes time-to-time OD Interventions to address specific requirement of the

Company.

The appraisal system is designed for all levels and grades. The entire format of the

performance appraisal system has been divided into 9 parts. It has a two tier system with

a initiating authority and reviewing authority. The appraisal system is a quarterly task

setting and assessment procedure. The members of the initiating and reviewing authority

are scrutinized on a regular basis on the appraisal system performed by them. Feedbacks

are taken from the employees about their views about the appraisal system and necessary

actions are taken if relevant. It has both a qualitative and quantitative assessment.

The appraisal system is divided into four levels and ten grades.

The IA would evaluate the performance of the appraisee, by the 7th of the 1st month of the

subsequent quarter, after joint discussion with the appraisee. The tasks set should, as far

as possible, be quantitative or measurable, either in terms of quantity or time limits. In


case the marks awarded by the RA vary from that awarded by the IA, the RA will

indicate justifications for such variations

There is a method used for the purpose of self-appraisal. It is aimed at providing officers

an opportunity to assess their performance against mutually agreed tasks. Skills required

to be possessed by an officer vary as he moves from one level to the next. To remove

ambiguity and difference in interpretation and understanding each state has been defined

in the help matrix. The marks awarded for the defined traits will have a relative

weightage and importance. There is a pre-defined scale of gradation. The traits which

taken into consideration while assessment are educational qualifications of the appraisee,

variety and richness of experience, job knowledge, effectiveness, personal qualities and

his performance on various assignments.

There is a performance review board which takes into consideration the assessment of the

IA & RA. The members of the PRB are generally from the corporate level. There is also

an appraisal done for officers on probation. Appraisals of officers in vigilance department

and systems audit department is also carried on.

There is a feedback system which is intimated in written to the employees if their score is

below 50. There is a clear description of the traits of attributes description and the

maximum marks that can be awarded for that particular trait.

Completed performance appraisal record is maintained by the particular divisions.

The short comings of the performance appraisal systems is the long quarterly procedure

which makes the entire procedure a long and tedious job. The attributes and traits are

different for different grade employees and moreover the qualitatively based description

makes the procedure a tough task.


Index: Page no.

Executive Summary 9

i) Introduction 12-15

ii) Focus on human resource policy 15-18

I) Manpower planning

II) Training & development

III) Performance appraisal

IV) Reward system

V) Scheme for learning & certification for executives

iii) Financial background of the company 18

Performance appraisal system

1. Salient features of the performance appraisal system 19

2. Filling up of the formats 20

3. Quarterly tasks and achievements 20-21

4. Self appraisal 21-22

5. Levels of initiating authority / reviewing authority 22

6. Assessment of traits 22-23

7. Pen picture (Qualitative assessment) 23-24

8. General assessment & review categorization 24

9. Training / developmental needs 25

10. Performance review board 25-26

11. Remarks by the higher authorities 26

12. Performance appraisal of the officers on probation 26-27

13. Assessment period 27

14. Feedback system 27-29

15. Routing of the report 29-30

16. Appraisals on officers in vigilance department 30-31

17. Appraisals on the officers of systems audit department 31


18. Appraisals on heads of finance, IMM and

personal & administrative in the

complex / division 32

19. Performance appraisal of officers on

deputation / retaining lien 32

20. Maintenance of performance appraisal records 32-33

21. Check by HRD cell 33

22. Format for filling up details of officers in

grades I to X except V & VI 33

23. Grade I & II format 34-35

24. Grade III & IV format 35-37

25. Grade V & VI format 37-40

26. Grade VII & VIII format 40-41

27. Grade IX & X format 42-43

28. Quarterly task setting and assessment sheet 43-44

29. Help matrix

Grade I & II 45-46

Grade III & IV 46-48

Grade V & VI 48-51

Grade VII & VIII 51-54

Grade IX & X 55-58

30. Short comings in the performance appraisal

System. 59

31. Conclusion 59-60

32. Exhibit 61-74

Bibliography


Hindustan Aeronautics Limited (HAL)

Introduction:

Hindustan Aeronautics Limited (HAL) came into existence on 1st October 1964. The

Company was formed by the merger of Hindustan Aircraft Limited with Aeronautics

India Limited and Aircraft Manufacturing Depot, Kanpur.

The Company traces its roots to the pioneering efforts of an industrialist with

extraordinary vision, the late Seth Walchand Hirachand, who set up Hindustan Aircraft

Limited at Bangalore in association with the erstwhile princely State of Mysore in

December 1940. The Government of India became a shareholder in March 1941 and took

over the Management in 1942.

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

in manufacturing aircraft, aerospace, navigation and communication equipment. It has the

distinction of building the first military aircraft constructed in South Asia and is currently

involved in the design, fabrication and assembly of aircraft, jet engines, helicopters and

their components and spares.

HAL's facilities are located throughout India including Nasik, Korwa, Kanpur, Koraput,

Lucknow and Hyderabad.

Adopting the slogan "Asia's Premier Aerospace Complex," India's aerospace and defence

major, Hindustan Aeronautics Limited (HAL), continues to take large strides in the sector

with every passing year. In size HAL is indisputably an Asian aerospace giant, with 16

production units and nine research and design centres spread across seven locations in

India.

Today, HAL has 16 Production Units and 9 Research and Design Centres in 7 locations

in India. The Company has an impressive product track record - 12 types of aircraft


manufactured with in-house R & D and 14 types produced under license. HAL has

manufactured 3550 aircraft (which includes 11 types designed indigenously), 3600

engines and overhauled over 8150 aircraft and 27300 engines.

HAL's supplies / services are mainly to Indian Defence Services, Coast Guards and

Border Security Forces. Transport Aircraft and Helicopters have also been supplied to

Airlines as well as State Governments of India. The Company has also achieved a

foothold in export in more than 30 countries, having demonstrated its quality and price

competitiveness.

HAL has been successful in numerous R & D programs developed for both Defence and

Civil Aviation sectors. HAL has made substantial progress in its current projects :

• Dhruv, which is Advanced Light Helicopter (ALH)

• Tejas - Light Combat Aircraft (LCA)

• Intermediate Jet Trainer (IJT)

• Various military and civil upgrades.

HAL has played a significant role for India's space programs by participating in the

manufacture of structures for Satellite Launch Vehicles like

• PSLV (Polar Satellite Launch Vehicle)

• GSLV (Geo Stationary Launch Vehicle)

• IRS (Indian Remote Satellite)

• INSAT (Indian National Satellite)

There are three joint venture companies with HAL :

• BAeHAL Software Limited

• Indo-Russian Aviation Limited (IRAL)

• Snecma HAL Aerospace Pvt Ltd


Apart from these three, other major diversification projects are Industrial Marine Gas

Turbine and Airport Services. Several Co-production and Joint Ventures with

international participation are under consideration.

HAL has won several International & National Awards for achievements in R&D,

Technology, Managerial Performance, Exports, Energy Conservation, Quality and

Fulfillment of Social Responsibilities. HAL was awarded the “INTERNATIONAL

GOLD MEDAL AWARD” for Corporate Achievement in Quality and Efficiency at

the International Summit (Global Rating Leaders 2003), London, UK by M/s Global

Rating, UK in conjunction with the International information and management centre

(IIMC).

HAL was presented the International - “ ARCH OF EUROPE ” Award in Gold Category

in recognition for its commitment to Quality, Leadership, Technology and Innovation At

the National level, HAL won the "GOLD TROPHY" for excellence in Public Sector

Management, instituted by the Standing Conference of Public Enterprises (SCOPE).

VISION OF THE COMPANY

"To make HAL a dynamic, vibrant, value-based learning organisation with human

resources exceptionally skilled, highly motivated and committed to meet the current and

future challenges. This will be driven by core values of the Company fully embedded in

the culture of the Organisation"

MISSION OF THE COMPANY

Enable all those working for HAL to give their best to ensure their all-round growth as

well as that of the Organization

OBJECTIVES

• To ensure availability of Total Quality People to meet the Organizational Goals

and Objectives.


• To have a continuous improvement in Knowledge, Skill and Competence

(Managerial, Behavioral and Technical)

• To promote a Culture of Achievement and Excellence with emphasis on

Integrity, Credibility and Quality

• To maintain a motivated workforce through empowerment of Individual and

Team- building

• To enhance Organizational Learning

• To play a pivotal role directly and significantly to enhance Productivity,

Profitability and improve the Quality of Work Life

STRATEGY

• To be in total alignment with Corporate Strategy

• Maintain Human Resource at optimum level to meet the objectives and goals of

the Company

• Be competent in Mapping, Analysis and Upgradation of Knowledge and Skills

including Training, Re-training, Multi-skilling etc

• Cultivate Leadership with Shared Vision at various levels in the Organization

• Focus on Development of Core Competence in High-Tech areas

• Build Cross-functional Teams

• Create awareness of Mission, Values and Organizational Goals through out the

Company

• Introduce / Implement personnel policies based on performance that would ensure

growth, Rewards, Recognition, Motivation

FOCUS OF HUMAN RESOURCE POLICY

• Competence Building

• Commitment

• Motivation

• Employee Relations


In the backdrop of the above, the focus of Human Resource Development initiatives at

HAL emphasize the following:

I ) MAN POWER PLANNING

• Out sourcing of low tech and medium tech jobs

• Fresh induction only in critical / highly specialised areas based on requirements

due to increase in work load and super annuation profile (Annexure-II). In the

Workmen Cadre, induction will be restricted to Direct Workmen only

• Improving the existing qualification profile by focusing on induction of

professionally qualified personnel and diploma holders

Hence focus of recruitment is to recruit people with a combination of knowledge, skill,

experience and attitude in line with the organisational requirement through appropriate

manpower plan both short term (contract appointments) and long term recruitment

programme.

II ) TRAINING AND DEVELOPMENT

Training is one of the most important tools for developing human resource. Hence,

identification of training competency profile in terms of Vision, Mission of the Company

is the strategic point of the training and development strategy of the Company. The

following objectives have been set in this regard:-

• To provide training to all employees at regular intervals in a plan period of 5

years.

• Training to become an integral component of individual professional evolution

by:

o updating knowledge to avoid obsolescence

o enhancing professional creativity

o enabling employees to shoulder higher responsibility

o creating a business trend and strategic thinking to take up new business

challenges (creation of Centre of Excellence, etc)


The goals of training will be to progressively achieve 7 days training per employee per

year with a budget of 2% of annual Wage Bill.

Keeping in view the organisational requirement and goals and objectives of training, the

following have been identified as the key focus areas of training:

• Technology

• Tooling

• Quality

• Information Technology

Further, to facilitate the development of soft skills (change of mind-set, managerial

development etc.) training would be imparted on a continuous basis. Tie-ups with Centres

of Excellence like IITs, NDC, FIAS France etc. for imparting training would be given

prime importance.

III ) PERFORMANCE APPRAISAL :

Appraising people for meeting the Company's goal would be the prime focus of

performance management. The new Performance Appraisal System based on work

planning and commitment (mutually agreed tasks) , self-review and performance

analysis, performance review and feedback would ensure that the focus would be on

value adding activities rather than on routine activities which bear no relationship with

the Organisation's goals and objectives.

Identification of low performers and resultant corrective action through out the Company

would be given priority. Similarly, faster career growth opportunity would be provided to

high performers.

IV ) REWARD SYSTEM

The focus of the reward system in the Company is to promote team work and cultivate a

sense of achievement and excellence in the Organisation. This is in addition to the

existing scheme of reward for an individual who innovatively and creatively makes

exemplary contributions in the key thrust areas of the Company that would lead to its


achieving overall excellence. Coupled with the above, schemes like "Inter Divisional

Competition" and "Profit Sharing Scheme" have been institutionalised in the Company

for team reward.

V ) SCHEME FOR LEARNING AND CERTIFICATION FOR EXECUTIVES

A "Learning Organisation" is essential for survival in the present era of Liberalisation,

Privatisation and Globalisation. Therefore, "Knowledge" is the only core competence of

Organisations for coping with changes.

In line with the above philosophy, among other initiatives like institutionalizing Learning

Centres in Divisions etc., HAL has also introduced the scheme for Learning and

Certification for executives as a starting point for building individual knowledge. The

scheme inter-alia provides an opportunity for the Junior and Middle Management Cadre

Executives to broaden their perspective by not only learning about all functions and

procedures in their respective disciplines but also in related areas and overall knowledge

about the Organization and its environment. So far, approximately, 45% (both for "O" &

"A" level) of executives have been certified (Annexure IV). It is proposed to expand the

coverage of this scheme further, if required, by linking the scheme to some kind of

reward mechanism.

Lastly, the HRD Plan will also include time-to-time OD Interventions to address specific

requirement of the Company.

FINANCIAL BACKGROUND OF THE COMPANY:

Hindustan Aeronautics Limited (HAL) has cruised past the Rs.5,000-crore mark for the

first time with a sales turnover of Rs.5,341.50 crores ($1.20 billion) during the Financial

Year 2005-06, The Value of Production has also gone up by 18.69% to Rs. 5,916.62

crores, while the Profit of the Company (Profit Before Tax) soared to Rs.1,126.29 crores,

which is an increase of 48.54% over the previous year's performance. Contracts worth

Rs. 17,800 crores (4 billion USD) were concluded during the year.


1. Some of the salient features of the performance appraisal system are

as under:-

i) Two tier system (IA & RA)

ii) Quarterly task setting and evaluation on a quarterly basis.

iii) Traits based on the responsibilities associated with each level.

iv) Self- appraisal by the officers at all levels.

v) Qualitative assessment, management review categorisation & identification of

training and developmental needs, both by IA & RA.

Level Grades

Level- I I & II

Level- II III & IV

Level- III V & VI

Level- IV VII & VIII

Level- V IX & X

1.1. The performance appraisal system was amended in 2000-01 year hence, assessment

of performance for the 2000-01 will be based on the evaluation for the remaining three

quarters viz. quarters ending 30th September 2000, 31st December 2000 and 31st march

2001. Required exercise of task setting for the 2nd quarter of the year (1st July to 30th

September 2000) would be done immediately between each appraisee and the concerned

initiating authority. For this purpose, copies of the quarterly task setting and assessment

sheets may be used till such time the formats are got printed.

1.2. Divisions/ officers have taken all necessary steps to implement the revised procedure

for the performance appraisal immediately.


2. Filling up of the formats:

Part Contents To be filled by

Cover page Bio-data of the appraisee Appraisee

Part- A Quarterly task setting and assessment. Appraisee & IA

Part- B Self appraisal

Comments & integrity

Appraisee

IA & RA

Part- C Assessment of traits IA & RA

Part- D Qualitative assessment of the appraisee (pen picture) IA & RA

Part- E General assessment & management review categorization. IA & RA

Part- F Training & developmental needs IA & RA

Part- G Evaluation by performance review board

Remarks of higher authority

PRB

GM/ MD/ FD/

CH

Part- H Illustrative list of areas for training -

Part- I Check list HRD cell

3. Quarterly tasks & achievements:

3.1. The performance appraisal system envisages setting up of quarterly tasks between

the appraisee & IA. The set tasks would be recorded on the quarterly task setting and

assessment sheets. At the time of setting the tasks, the IA may also consult the RA also.

3.2. Quarters for the purpose of PAR would be as follows:

Quarter Period

I 1st April to 30th June


II 1st July to 30th September

III 1st October to 31st December

IV 1st January to 31st March

3.3. Task setting for each quarter would be done, jointly by the appraisee and the IA, by

the 7th of the first month of each quarter. The maximum marks of 100 would be

distributed among all the tasks, based on their relative weightage/ importance. Separate

task setting and assessment sheets are to be used for each quarter and the same would be

signed both by the appraisee and the IA. The task setting sheets would be prepared in

duplicate and one copy will be with the appraisee and the other with the IA.

3.4. The tasks set should, as far as possible, be quantitative or measurable, either in terms

of quantity or time limits.

3.5. The IA would evaluate the performance of the appraisee, by the 7th of the 1st month

of the subsequent quarter, after joint discussion with the appraisee, against the set tasks

and will award marks for each task, keeping in view the maximum marks decided for

each task at the beginning of the quarter.

3.6. Completed task setting and assessment sheet of each quarter would be retained by the

IA with him and the same would be attached by him with the annual/ probationary PAR

at the end of the assessment year/ period.

4. Self Appraisal:

4.1. All officers should assess themselves in Part B (B.1, B.2 & B.3) of the appraisal

format. Self-appraisal is aimed at providing officers an opportunity to assess their

performance against mutually agreed tasks. Self-appraisal should be brief and to the

point.


4.2. Comments on the self-appraisal by the IA & RA are to be made in the space

provided (parts B.4 & B.5). self- appraisal by the officers should also be taken into

account by the IA and RA, while making the assessment in Part- C of the format.

5. Levels of Initiating Authority / Reviewing Authority:

5.1. Levels of the IA & RA for officers in various grades would be as follows:

Grade of the

Appraisee

Initiating Authority Reviewing Authority

I / II Minimum Grade III or above Minimum Grade V or above

III / IV Minimum Grade V or above Minimum Grade VI or

above

V / VI Minimum Grade VII or above Minimum Grade VIII or

above

VII / VIII Minimum Grade IX or above Minimum Grade X or above

IX / X MD / FD CH

Notes: i) While the levels of the IA & RA, in general, should be as above, if the appraisee

is reporting to officers at lower levels, the IA & RA can be in lower grades also.

ii) In case of the officers who are directly reporting to senior executives in Grade

VII / VIII / IX / X / MD / FD / CH and where there are no immediate officers, the

concerned senior executive will be the IA / RA, except in cases which has been

specifically mentioned.

6. Assessment Of Traits:

6.1. Skills required to be possessed by an officer vary as he moves from one level to the

next. Keeping this aspect in view, separate set of traits against each officers are to be

assessed have been devised. Marks have been allotted for each trait both by the IA & RA.


6.2. For the first trait (Performance), marks awarded by the IA will be the equivalent %

of the average marks for the year awarded by him in Part- A. For example, if the average

marks awarded by the IA in Part- A for a year is 70 out of 100, marks against

(Performance) in Part- C.1 for an officer in grade I / II will be 56 ( i.e. 80% of 70). In

case the marks awarded by the RA vary from that awarded by the IA, the RA will

indicate justifications for such variations in Part C.1.1 of the format. For the remaining

traits, the IA & RA have to award marks individually out of the maximum marks

indicated against each trait.

6.3 To remove ambiguity and difference in interpretation and understanding each state

has been defined in Part C.1 of the format. Further, the illustrative help matrix at

appendix- G could also be used for guidance, in general, for awarding marks against each

other (other than performance)

Scale Of Gradation:

The scale of gradation is as follows:

Total marks 100-90 89-80 79-50 Below 50

Performance

rating

Exceptional Above average Average Below average

7. Pen Picture (Qualitative Assessment):

7.1. Both the IA & RA have to give a brief description of the appraisee at Part-D of the

format, as pen picture.

7.2. The pen picture should be written carefully highlighting all aspects of the personality

of the appraisee. By reading the pen picture, one should be in a position to get a clear

picture about the appraisee, his effectiveness and his personal qualities.


The 1A &RA should use this part of the appraisal report to narrate about the traits of the

appraisee that are not covered under specific traits under Part C.1

8. General assessment & management review categorization:

8.1. The IA & RA have to indicate the strengths and areas requiring improvements I

respect of the appraisee, with reference to his performance, at Part-E of the format. This

will enable the PRB to get a balanced picture about the appraisee & would also facilitate

positive HRD intervention.

8.2. Both the IA & RA have to indicate the “Management Review Categorisation” of the

appraisee, which forms the potential assessment area of the Performance Appraisal

system, as follows:

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

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

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

8.3. While indicating the Management Review Categorisation, the IA &RA should take

into account the educational qualifications of the appraisee, variety and richness of

experience, job knowledge, effectiveness, personal qualities and his performance on

various assignments.

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


9. Training/Developmental Needs:

9.1. Both the IA & RA should indicate specific areas to which the appraisee should be job

rotated as well as training to be given to prepare him for future advancements. An

illustrative list of areas of Training & Development is at Part-H of the PAR form.

10. Performance Review Board:

10.1. Performance review board will be constituted at the divisional / complex / corporate

level (similar to the existing PRCs) for determining the final marks / performance rating

of the appraisee, taking into consideration the assessment made by the IA & RA. The

PRB will consult the IA & RA, where ever necessary, if they are not the members of

PRB.

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

Level Grade Chairman of PRB Members of PRB

I I / II Senior most AGM /

DGM in the division

Other AGMs /

DGMs / HODs in

the division & HRD

representative

II III / IV GM / divisional

head

AGMs / DGMs /

HODs in the

division & HRD

representative

III V / VI MD / FD GMs of the division

& HRD

representative

IV VII / VIII CH MDs / FDs

V IX / X CH MDs / FDs


10.3. Constitution of the divisional PRBs in respect of officers in grade I / II and III / IV,

as at para 10.2 above, are illustrative only and the divisions can constitute and notify the

PRB, each year, based on the above guidelines.

10.4. In respect of complex offices, MDs will be the chairman of the PRB for officers in

grade I to IV also.

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

Planning & Marketing), Director (Finance), Director (Personnel) and General Manager

(P& A) will be the members of the PRB. The senior most Director will be the chairman

of the PRB.

10.6. The marks and performance rating awarded by the PRB would be final.

11. Remarks by the higher authorities:

11.1. GMs / MDs / FDs / CH would indicate their general remarks in Part- G of the

format.

12. Performance appraisal of the officers on probation:

12.1. Two performance appraisals are to be submitted, one at the end of the sixth month

and the other at the end of the eleventh month of the probationary period officers.

Formats to be used and system to be used and system to be followed for filling up of the

formats would be the same as in respect of annual reports.

12.2. Probationary performance appraisal reports would not be put up to the performance

review board. Marks / performance rating awarded by the RA would be final in respect of

these reports. These reports would, however, be put up to the higher authorities for their

remarks in Part- G.


12.3. The RA should ensure that the sixth and eleventh monthly reports are submitted to

the HRD cell within the 7 days of the completion of the sixth and eleventh monthly

report.

12.4. The sixth / eleventh monthly performance appraisals would be the basis of

confirmation of the officers appointed / promoted. The report should therefore indicate

the suitability or otherwise of the officer for confirmation by the competent authority, in

the eleventh monthly report.

13. Assessment period:

13.1. The activity chart on the operation of the performance appraisal system is shown in

Exhibit no. 10.

14. Feedback system:

14.1. All officers who have scored final marks of below 50 and rated as below average

would be intimated in writing about the same, through the concerned division / office, as

follows:

Officers in grade To be intimated by

VII and above Corporate office

V / VI Complex office

I to IV Division / office

This communication would be signed by the head of the P&A department at the corporate

office / complex office / division / office.

14.2. In addition to the above, oral feedback by the appraisers, to the appraisee, on his

performance, should be an ongoing process. It is necessary to encourage progress and


correct mistakes. The appraisee should be encouraged and the areas requiring immediate

attention for improving his performance should be highlighted.

14.3. The initiating authority should inform the appraisee in writing as and when the need

arises.

14.4. Further to the feedback / communication as at paras 14.1 to 14.3 above, the HRD

cell should ensure communication of the areas / traits for improvement, if any, to the

appraisee, after the report is completed by all concerned. Such communication would be

issued as follows:

i) For officers upto and including Grade IV:

The HRD cells of the respective divisions / officers would identify the cases where

feedback is required and would ensure that necessary communications are issued to the

officers, through the IA / RA.

ii) For officers in grades V & VI:

The HRD cell of the complex office will identify the cases where feedback is required to

be given and would communicate the same to the officers concerned through the

concerned division / office.

iii) For officers in grade VII & above:

Corporate office will identify the cases where feedback is required to be given and would

communicate the same to the officers concerned, through the concerned division / office,

with a copy to the complex office.

14.5. Procedure for expunging remarks on areas of improvement:

14.5.1. If an officer is aggrieved by the communication for improvements in certain areas

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

same.


14.5.2. The authorities competent to consider and dispose of the representation would be

as under:

Officer in grade Competent authority

I / II / III / IV Concerned GMs.

V / VI Concerned MD / FD

VII and above chairman

14.5.3 Competent authority as at para 14.5.2 would examine such representations on the

basis of the relevant records and material avalaible and may also consult the IA / RA. If

the competent authority is convinced that the observation was unjustified, he may order

expunging such observation from the officer’s report.

14.5.4. Where the General Manager himself is the IA / RA, the managing director /

functional director will be the competent authority to dispose the representation and the

chairman will be the competent authority if the IA / RA is the managing director /

Functional director.

14.5.5. Suitable remarks to the effect that such observations have been expunged are to

be made by the competent authority in the performance appraisal report, at the place

where the remarks are expunged.

14.5.6. The officer concerned would be intimated about expunging the remarks or

otherwise, by the HRD cell of the concerned division / complex / corporate office.

15. Routing of the report:

15.1. Completed performance appraisal reports of the officers in grade I & II will be

maintained by the concerned divisions. Complex offices will maintain reports in reports

in respect of officers in grade III to IV. PARs in respect of officers in Grade VI and

above should be sent to corporate office.


15.2. While forwarding the performance appraisal reports of officers in Grade VI &

above to corporate office, the following procedure should be followed:

i) Reports in respect of officers in grade VIII & above should be sent to the Director

(Personnel).

ii) Reports in respect of officers in grade VI & VII should be sent to the general manager

(personal & administration).

iii) The envelope containing the performance appraisal reports should be marked

“confidential” and “To be opened by the addressee only”.

16. Appraisals on officers in vigilance department:

16.1. Performance appraisal on officers in the vigilance department will be raised as

indicated below:

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

heads of vigilance departments in the divisions.

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

vigilance department in the divisions / offices upto and including grade III. Chairman will

be the RA in respect of heads of vigilance department in grade IV & above.

16.1.3. In respect of officers of vigilance department who are working under the heads of

vigilance in each division / office, executive director (Vigilance) would be the RA. In

respect of such officers in grade IV and above, chairman would endorse his views in part

G.4 of the format.

16.1.4. After the reports are filled in as at paras 15.1.1 to 15.1.3 above, executive director

( Vigilance) would also complete the column of evaluation by performance review board

at part – G of the report.


16.1.5. Completed reports as at paras 15.1.1 to 15.1.4 would be retained in the office of

the executive director (Vigilance), corporate office.

17. Appraisals on the officers of systems audit department:

17.1. Head of systems audit at corporate office will be the IA in respect of heads of

systems audit cells in the divisions.

17.2. Head of systems audit at corporate office will also be the RA in respect of Head of

systems audit cell in the divisions who are in grades I to III. Director (Finance) will be

the RA in respect of Head of systems audit cell in the divisions in grades IV & above.

17.3. In respect of officers in systems audit who are working under the head of systems

audit cell in the divisions, head of systems audit at corporate office would be the RA. In

respect of such officers in Grade IV and above, Director (Finance) would endorse his

views in part G of the format.

17.4. After the reports are filled in as at paras 16.1 to 16.3 above, Head of systems audit

at corporate office would also complete the column of evaluation by performance review

board at part- G of the report.

17.5. Completed reports as at paras 16.1 to 16.4 would be sent back to the concerned

division / office by the head of systems audit at corporate office, for retention.

17.6. Administrative, heads of systems audit cells in the divisions / offices would

continue to report to the corporate general manager.


18. Appraisals on heads of finance, IMM and personnel &

administrative in the complex / division:

18.1. In respect of heads of finance, IMM and personnel & administration in grade VII

and above in the complex offices, managing director would be the IA and chairman

would be the RA. In respect of such officers in grade VI and below, concerned managing

director would be the IA & RA. In respect of heads of finance, IMM and personnel &

administration in the divisions, divisional head would be the IA and concerned managing

director would be the RA. In all such cases, the concerned functional director at corporate

office would indicate his remarks at part- G of the format.

19. Performance appraisal of officers on deputation / retaining lien:

19.1. The performance appraisal of the officers on deputation to the company from the

state / central government and other PSUs and / or officers retaining lien in their parent

organization are to be raised in the prescribed performance appraisal form of the

respective state / central government and other PSUs concerned, for respective parent

organization. The annual appraisal report of the service officers on deputation, from

Indian Air Force, Indian Navy & Indian Army are to be raised in the prescribed

confidential report form.

19.2. In case of Airforce officers on deputation to HAL as test pilots, the following would

be the appraisal channel in the prescribed format of Indian Airforce

20. Maintenance of performance appraisal records:

20.1. An upto date bio-data of the officer should be kept as the first sheet in the

performance appraisal records of each officer. A recent passport size photograph should

be affixed on the inside front of the performance appraisal records.


20.2. The inside of the front cover of the performance appraisal records should contain a

summary of assessment in the following format:

Annexure No. Assessment Period Overall Gradation /

Marks / performance

rating

20.3. This summary will provide at a glance, the gradation / marks/ rating given to the

officer right from the beginning of the service.

21. Check by HRD cell:

21.1. Part- I of the performance appraisal provides a check list to be checked and signed

by the officer in charge of the HRD cell. The officer checking the filling of the form

should check for discrepancies / inconsistencies, if any, guide the appraisers so that the

appraisal system serves the purpose for which it is instituted.

22. Format for filling up of details of officers in grades I to X except V &

VI.

Refer to exhibit no: 11


23. Grade- I & II

(For Part- A & B refer to exhibit no. 1 & 2.)

PART- C C.1. Assessment of traits

Note: While levels of the IA & RA, in general, should be done as above, if the appraisee

is reporting to officers at lower levels, the IA & RA can be in lower grades also.

Attributes and their description Maximum

marks

Initiating

authority

Reviewing

authority

1.Performance: Based on the marks scored

against quarterly tasks (Part A)

80

2. Job knowledge: Extent of theoretical

knowledge & practical know-how as related to

assigned tasks; Related / allied jobs & knowledge

of current developments in his own field.

5

3. Quality of work: General excellence of output,

systems and methods.

5

4. Man management: Ability to ensure optimum

utilization of manpower towards target fulfillment.

5

5. Punctuality & Attendance: General discipline

in adhering to work timing and attendance

5

100

Grade of the appraisee Initiating authority Reviewing authority

Grade- I / II Minimum grade III or

above

Minimum grade V or above


Note: If there is variation in the marks awarded between the IA and the RA against

“performance” at Part C.1.1 above, the RA should indicate justification for such variation

also at column C.1.1.

(For Part- C.2, D, E, F, G, H & I refer to exhibit 3, 4, 5, 6, 7, 8 & 9.)

24. GRADE- III and IV

(For Part A & B refer to exhibit no. 1 & 2.)

Part- C Assessment of traits


Grade- III / IV Minimum grade V or above Minimum grade VI or

above

Note: While the levels of the IA & RA, in general, should be as above, if the appraisee is

reporting to officers at lower levels, the IA & RA can be in lower grades also.


marks

Initiating

authority

Reviewing

authority



75

2. Job knowledge: Extent of theoretical

knowledge & practical know-how as related to

assigned tasks; Related / allied jobs &

knowledge of current developments in his own

field.

5

3. Planning & coordination: ability to work

meticulously plan his job and effectively

coordinate with his team members in

5


achievement of common organizational goals

4. Quality of work: General excellence of

output, systems and methods

5

5. Developing subordinates: ability to interact,

guide, counsel and nurture subordinates with a

view not only to help them to perform their

present job effectively but also to groom them

for meeting greater responsibilities / challenge.

5

6. Potential to shoulder higher

responsibilities: ability to take up higher level

responsibility and set pace for the team members

towards goal achievement.

5

100


‘performance’ in part- C.1.1 above, the RA should indicate justification for such variation

also at column C.1.1.

(For Part- C.2, D, E and F refer to exhibit no. 3, 4, 5 & 6.)

G.1. Evaluation by performance review board (In case of annual reports only)

(To be recorded by the secretary of the performance review board. PRB to consult IA /

RA, wherever necessary, if they are not the members of PRB, before awarding final

marks/ performance rating. Final marks / performance rating to be awarded based on the

scale of gradation at part C.2)

Final marks / performance rating

Secretary:

Signature:

Chairman of PRB:

Signature:


Name:

Date:

Name:

Date:

G.2. Remarks of general manager (if not IA/ RA)

Name: Signature:

G.3. Remarks of functional director (In case of HODs of functional departments namely

P&A, finance & IMM) (In case he is not IA / RA)

Name: Signature:

G.4 a) Remarks of Managing Director / Functional director (Only for Grade IV) (In case

he is not IA / RA)

b) Remarks of Chairman in case of officers of vigilance department (Only Grade IV)

(In case he is not IA / RA)

Name: Signature:

(For Part- H & I refer to exhibit no. 6 & 7.)

25. GRADE- V & VI

Format for filling up of officers in grades:

Refer to exhibit no:12.

(For part- A & B refer to exhibit no. 1 & 2.)


Part- C C.1 Assessment of traits


Grade- V / VI Minimum grade VII or

Above

Minimum grade VIII or

Above

Note: While levels of the IA & RA, in general, should be as above, if the appraisee is



marks

Initiating

authority

Reviewing

authority



70

2. Professional Competence: Functional,

managerial ability / and attitude in application of

job knowledge to set perspective plan and

fulfillment of the same with optimum use of

resources.

5

3. Quality consciousness: General excellence of

work / job executed. Efforts to achieve quality

improvement plan strive for higher standards

5

4. Cost and time consciousness: Utilisation of

resources effectively, ensuring required tolerance /

quality within optimum time and minimum costs.

5




present job effectively but also to groom them for

5


meeting greater responsibilities / challenge.

6. Team Building: Ability to interact, command

& influence people with a view to have

cohesiveness amongst them to ensure thrust in the

direction of achievement of targets.

5

7. Potential to shoulder higher responsibilities:

ability to take up higher level responsibility and

set pace for the team members towards goal

achievement.

5

100

(For Part-C.2, D, E, F & (G.1, G.2) refer to exhibit no.3, 4, 5, 6 & 7

respectively.)

G.3. Evaluation by performance review board

(In case of annual reports only. To be recorded by the secretary of the performance

review board. PRB to consult IA / RA, wherever necessary, if they are not members of

PRB, before awarding final marks / performance rating. Final marks / performance rating

to be awarded based on the scale of gradation at item C.2)


Secretary: Signature: Name: Date:

Chairman of PRB(MD / FD) Signature: Name: Date:

G.4 a) Remarks of Managing Director / functional director (In case he is not IA / RA)

b) Remarks of the chairman in case of officers of vigilance department (In case he is

not RA)


Name: Signature:

(For Part- H & I refer to Exhibit no. 8 & 9 respectively.)

26. Grade- VII & VIII

(For Part- A & B refer to exhibit no. 1 & 2 respectively.)

Part- C C.1. Assessment of traits


Grade- VII / VIII Minimum grade- IX or

above

Minimum grade X or above

NOTE: while the levels of IA & RA, in general, should be as above, if the appraisee is



marks

Initiating

authority

Reviewing

authority



60





resources.

5

3. Quality consciousness: General excellence of 5







5

5. Customer satisfaction: Ability to fulfill the

needs of both external and internal customers of

his position

6. Time Management: Productive and effective

use of available time.

5






5





5




achievement.

5

100

(For Part- C.2, D, E, F, G, H & I refer to exhibit no. 3, 4, 5, 6, 7, 8 & 9.)


27. Grade- IX & X

(For Part- A & B refer to exhibit no. 1 & 2.)

Part- C C.1. Assessment of traits


Grade- IX / X MD / FD CH

Note: While all levels of the IA & RA, in general, should be as above, if the appraisee is

reporting to officers at lower levels, the IA & RA can be lower grades also.


marks

Initiating

authority

Reviewing

authority



60





resources.

5

3. Quality consciousness: General excellence of



5




5

5. Customer satisfaction: Ability to fulfill the

needs of both external and internal customers of

his position

6. Time Management: Productive and effective 5


use of available time.

7. Man management: Ability to manage people

as a team

5






5





5

10. Management of external environment:

Ability to deal with external agencies towards

building image of the company.

5




achievement.

5

100


‘performance’ at Part- C.1.1 above, the RA should indicate justifications for such

variation also at column C.1.1.

(For Part-C.2, D, E, F, G, H & I refer to exhibit no. 3, 4, 5, 6, 7, 8 & 9.)

APPENDIX- F

28. QUARTERLY TASK SETTING & ASSESSMENT SHEET

For the year 20__ to 20__

_____ Quarter ( From _____ to ______)


• Task setting to be done after joint discussion between the appraisee and the

iniating authority, by the 7th of the 1st Month of the quarter. IA may consult the

RA before finalizing the quarterly tasks. Assessment to be done after joint

discussions between the appraisee and the IA, by the 7th of the 1st month of the

subsequent quarter.

Sl

No.

Tasks Achievement of tasks Maximum

marks

assigned

for each

task

Marks

score

for

each

task

Total marks 100

(Signature of the appraisee) (Signature of the IA)

Name: Name:

Designation: Designation:

Date: Date:

Note: i) More numbers of sheets can be used for each quarter, if required.

ii) Separate sheets to be filled up for each quarter.

iii) These sheets are to be enclosed to the Annual / Probationary PAR of the

appraisee, as the case may be.


APPENDIX- G

29. Help Matrix

Help matrix for awarding marks out of 5 from Trait No.2 onwards:

29.1. For level- I- Grade- I / II

Traits Marks scored

5 4 3 2 1

Job knowledge:

extent of

theoretical

knowledge &

Practical

knowledge know-

how as related to

assigned tasks;

related/ allied jobs

& knowledge of

current

development in his

own field.

Has

excellent

knowledge

in the

theoretical

as well as

practical

aspects of

defined

areas

Has good

knowledge

and updates

regularly

Has adequate

job

knowledge

Has reasonable

job knowledge

Has little or no

job knowledge

Quality of work:

General excellence

of output, methods

and systems.

Consistently

maintains

highest

level of

quality in

all areas of

work

Always

maintains

good level of

quality in all

areas of work

Maintains

adequate

level of

quality in all

areas of work

Maintains

reasonable

level of quality

in all areas of

work

Unsatisfactory

level of quality

of work

Man Has Has good Has adequate Has reasonable Lacks ability to


Management:

Ability to ensure

optimum

utilization of man

power towards

target fulfillment.

excellent

ability to

inspire and

motivate

people to

get the best

out of them

ability to

carry people

along with

him to

achieve

results

ability to

manage

people at

work

ability to

manage people

at work

manage people

at work

Punctuality &

Attendance:

General discipline

in adhering to

work timing and

attendance

Extremely

good at

adhering to

work timing

and

regularity

Shows good

adherence to

work timing

and regularity

Shows

adequate

adherence to

work timing

and regularity

Shows

reasonable

adherence to

work timing

and regularity

Does not adhere

to work timing

and is irregular

29.2. Level- II for Grade III / IV

Traits Marks Scored

5 4 3 2 1

Job knowledge:

extent of

theoretical

knowledge &

Practical

knowledge

know-how as

related to

assigned tasks;

related/ allied

jobs &

knowledge of

Has excellent

knowledge in

the

theoretical as

well as

practical

aspects of

defined areas

Has good

knowledge

and updates

regularly

Has adequate

job knowledge

Has reasonable

job knowledge

Has little or no

job knowledge


current

development in

his own field.

2. Planning &

coordination:

ability to work

meticulously

plan his job and

effectively

coordinate with

his team

members in

achievement of

common

organizational

goals

Has excellent

planning and

coordination

ability

Has good

planning and

coordination

ability

Has adequate

planning and

coordination

ability

Has reasonable

planning and

coordination

ability

Lacks planning

and

coordination

ability

3. Quality of

work: General

excellence of

output, systems

and methods

Consistently

maintains

highest level

of quality in

all areas of

work

Always

maintains

good level of

quality in all

areas of work

Maintains

adequate level

of quality in

all areas of

work

Maintains

reasonable

level of quality

in all areas of

work

Unsatisfactory

level of quality

of work

4. Developing

subordinates:

ability to

interact, guide,

counsel and

nurture

subordinates

with a view not

Extremely

successful in

helping and

training his

subordinate

to assume

higher

responsibiliti

Good in

identifying

subordinates

capacities and

training them

for assuming

higher

responsibilities

Adequate

ability to

develop

subordinates

Makes an

attempt to

develop

subordinates

Lacks ability

to develop

subordinates


only to help them

to perform their

present job

effectively but

also to groom

them for meeting

greater

responsibilities /

challenge.

es

5. Potential to

shoulder higher

responsibilities:

ability to take up

higher level

responsibility

and set pace for

the team

members

towards goal

achievement.

Always

prepared to

shoulder

higher

responsibiliti

es

Very often

prepared to

shoulder

higher

responsibilities

Often prepared

to shoulder

higher

responsibilities

Sometimes

prepared to

shoulder

higher

responsibilities

Never

prepared to

shoulder

higher

responsibilities

29.3. Level- III for grade V / VI

Traits Marks scored

5 4 3 2 1

1. Professional

Competence:

Functional,

managerial

ability / and

Has excellent

professional

competence

Professionally

quite

competent

Has adequate

professional

competence

Has reasonable

professional

competence

Professionally

incompetent


attitude in

application of

job knowledge

to set

perspective plan

and fulfillment

of the same with

optimum use of

resources.

2. Quality

consciousness:

General

excellence of

work / job

executed.

Efforts to

achieve quality

improvement

plan strive for

higher standards

Consistently

maintains

highest level

of quality in

all areas of

work

Always

maintains

good level of

quality in all

areas of work

Maintains

adequate level

of quality in

all areas of

work

Maintains

reasonable

level of quality

in all areas of

work

Unsatisfactory

level of quality

of work

Cost and time

consciousness:

Utilisation of

resources

effectively,

ensuring

required

tolerance /

quality within

optimum time

Had

exceptional

ability to

manage cost

and time

Good at

maintaining

cost and time

Adequate

ability to

maintain cost

and time

Reasonable

ability to

maintain cost

and time

Lacks ability

to maintain

cost and time


and minimum

costs.

8. Developing

subordinates:

ability to

interact, guide,

counsel and

nurture

subordinates

with a view not

only to help

them to perform

their present job

effectively but

also to groom

them for

meeting greater

responsibilities /

challenge.

Extremely

successful in

helping and

training his

subordinate to

assume higher

responsibilities

Good in

identifying

subordinates

capacities and

training them

for assuming

higher

responsibilities

Adequate

ability to

develop

subordinates

Makes an

attempt to

develop

subordinates

Lacks ability

to develop

subordinates

9. Team

Building:

Ability to

interact,

command &

influence people

with a view to

have

cohesiveness

amongst them to

ensure thrust in

An excellent

team builder

and leads the

team towards

fulfillment of

targets

Good ability to

build an

effective team

Adequate

ability to build

a team

Reasonable

ability to build

a team

Lacks ability

to build a team


the direction of

achievement of

targets.

Potential to

shoulder

higher

responsibilities:

ability to take

up higher level

responsibility

and set pace for

the team

members

towards goal

achievement.

Always

prepared to

shoulder

higher

responsibilities

Very often

prepared to

shoulder

higher

responsibilities

Often prepared

to shoulder

higher

responsibilities

Sometimes

prepared to

shoulder

higher

responsibilities

Never

prepared to

shoulder

higher

responsibilities

29.4. Level- IV for grade VII / VIII

Traits Marks scored

5 4 3 2 1

2. Professional

Competence:

Functional,

managerial

ability / and

attitude in

application of

job knowledge

to set

Has excellent

professional

competence

Professionally

quite

competent

Has adequate

professional

competence

Has

reasonable

professional

competence

Professionally

incompetent


perspective plan

and fulfillment

of the same with

optimum use of

resources.

3. Quality

consciousness:

General

excellence of

work / job

executed.

Efforts to

achieve quality

improvement

plan strive for

higher standards

Consistently

maintains

highest level

of quality in

all areas of

work

Always

maintains

good level of

quality in all

areas of work

Maintains

adequate level

of quality in

all areas of

work

Maintains

reasonable

level of quality

in all areas of

work

Unsatisfactory

level of quality

of work

4. Cost and

time

consciousness:

Utilisation of

resources

effectively,

ensuring

required

tolerance /

quality within

optimum time

and minimum

costs.

Had

exceptional

ability to

manage cost

and time

Good at

maintaining

cost and time

Adequate

ability to

maintain cost

and time

Reasonable

ability to

maintain cost

and time

Lacks ability

to maintain

cost and time

5. Customer Has excellent Good in Adequate Reasonably Lacks ability


satisfaction:

Ability to fulfill

the needs of

both external

and internal

customers of his

position

ability to

satisfy the

needs of the

customers

satisfying the

needs of the

customers

ability to

satisfy the

needs of the

customers

satisfying the

needs of the

customer

to satisfy the

needs of the

customers

6. Time

Management:

Productive and

effective use of

available time.

Exceptionally

good in time

management

Good in time

management

Reasonably

good in time

management

Fairly does the

time

management

Does not plan

at all time

management

7. Developing

subordinates:

ability to

interact, guide,

counsel and

nurture

subordinates

with a view not

only to help

them to perform

their present job

effectively but

also to groom

them for

meeting greater

responsibilities /

challenge.

Extremely

successful in

helping and

training his

subordinate to

assume higher

responsibilities

Good in

identifying

subordinates

capacities and

training them

for assuming

higher

responsibilities

Adequate

ability to

develop

subordinates

Makes an

attempt to

develop

subordinates

Lacks ability

to develop

subordinates

8. Team An excellent Good ability to Adequate Reasonable Lacks ability


Building:

Ability to

interact,

command &

influence people

with a view to

have

cohesiveness

amongst them to

ensure thrust in

the direction of

achievement of

targets.

team builder

and leads the

team towards

fulfillment of

targets

build an

effective team

ability to build

a team

ability to build

a team

to build a team

9. Potential to

shoulder

higher

responsibilities:

ability to take

up higher level

responsibility

and set pace for

the team

members

towards goal

achievement.

Always

prepared to

shoulder

higher

responsibilities

Very often

prepared to

shoulder

higher

responsibilities

Often prepared

to shoulder

higher

responsibilities

Sometimes

prepared to

shoulder

higher

responsibilities

Never

prepared to

shoulder

higher

responsibilities


29.5. Level- V for Grade IX / X

Traits Marks scored

5 4 3 2 1

2. Professional

Competence:

Functional,

managerial

ability / and

attitude in

application of

job knowledge

to set

perspective plan

and fulfillment

of the same with

optimum use of

resources.

Has excellent

professional

competence

Professionally

quite

competent

Has adequate

professional

competence

Has

reasonable

professional

competence

Professionally

incompetent

3. Quality

consciousness:

General

excellence of

work / job

executed. Efforts

to achieve

quality

improvement

plan strive for

higher standards

Consistently

maintains

highest level

of quality in

all areas of

work

Always

maintains

good level of

quality in all

areas of work

Maintains

adequate level

of quality in

all areas of

work

Maintains

reasonable

level of quality

in all areas of

work

Unsatisfactory

level of quality

of work


4. Cost and

time

consciousness:

Utilisation of

resources

effectively,

ensuring

required

tolerance /

quality within

optimum time

and minimum

costs.

Had

exceptional

ability to

manage cost

and time

Good at

maintaining

cost and time

Adequate

ability to

maintain cost

and time

Reasonable

ability to

maintain cost

and time

Lacks ability

to maintain

cost and time

5. Customer

satisfaction:

Ability to fulfill

the needs of both

external and

internal

customers of his

position

Has excellent

ability to

satisfy the

needs of the

customers

Good in

satisfying the

needs of the

customers

Adequate

ability to

satisfy the

needs of the

customers

Reasonably

satisfying the

needs of the

customer

Lacks ability

to satisfy the

needs of the

customers

6. Time

Management:

Productive and

effective use of

available time.

Exceptionally

good in time

management

Good in time

management

Reasonably

good in time

management

Fairly does the

time

management

Does not plan

at all time

management

7.Man

management:

Ability to

manage people

Has excellent

ability to

inspire and

motivate

Has good

ability to carry

people along

with him to

Has adequate

ability to

manage people

at work

Has

reasonable

ability to

manage people

Lacks ability

to manage

people at work


as a team people to get

best out of

them

achieve results at work

8.Developing

subordinates:

ability to

interact, guide,

counsel and

nurture

subordinates

with a view not

only to help

them to perform

their present job

effectively but

also to groom

them for

meeting greater

responsibilities /

challenge.

Extremely

successful in

helping and

training his

subordinate to

assume higher

responsibilities

Good in

identifying

subordinates

capacities and

training them

for assuming

higher

responsibilities

Adequate

ability to

develop

subordinates

Makes an

attempt to

develop

subordinates

Lacks ability

to develop

subordinates

9.Team

Building:

Ability to

interact,

command &

influence people

with a view to

have

cohesiveness

amongst them to

An excellent

team builder

and leads the

team towards

fulfillment of

targets

Good ability to

build an

effective team

Adequate

ability to build

a team

Reasonable

ability to build

a team

Lacks ability

to build a team


ensure thrust in

the direction of

achievement of

targets.

10.Management

of external

environment:

Ability to deal

with external

agencies towards

building image

of the company.

Manages

external

environment

exceptionally

Good at

managing

external

environment

Adequate

ability in

managing

external

environment

Reasonable

ability in

managing

external

environment

Lacks ability

in managing

external

environment

9.Potential to

shoulder higher

responsibilities:

ability to take up

higher level

responsibility

and set pace for

the team

members

towards goal

achievement.

Always

prepared to

shoulder

higher

responsibilities

Very often

prepared to

shoulder

higher

responsibilities

Often prepared

to shoulder

higher

responsibilities

Sometimes

prepared to

shoulder

higher

responsibilities

Never

prepared to

shoulder

higher

responsibilities


30. Short comings in the performance appraisal system:

1. Company has quarterly task setting and assessment method which makes the

entire performance appraisal system a very long procedure.

2. As the system is on the quarterly basis so the employees work on a short term

project. They give less emphasis on long term project because that may not be

noticeable in a quarter period.

3. The company has 16 divisions, which makes the entire appraisal system a tedious

job and a lot of time is spent on collection of information.

4. The appraisal emphasises on the collective achievement by the entire division

rather than on an individual.

5. Till yet there has no strong action taken against any negative comments given in

the appraisal system.

6. The appraisal system has different attributes and traits description. There are 10

grades which is divided into 5 grades. This qualitative measurement is a time

consuming procedure.

7. The slow performers are intimated in writing but hardly any interaction is done by

the manager to find out problems encountered by the particular employee.

Conclusion:

The complete performance appraisal is nevertheless a good transparent procedure but still

some areas need to be looked upon. The company irrespective of any problems

encountered conducts the appraisal system in due time. Mostly the performance of an

employee also depends on the overall performance of the particular division he is

employed. There is a quarterly procedure for task setting and assessment. All employees

including officers on probation, audit department and vigilance department have to go

through this performance appraisal system. Team building and time management is an

important in almost all grades. A person taking initiative to handle higher responsibilities

is given a space to grow in all fields. Apart from the skills acquired by the particular

employee the appraisal system also emphasizes on the ability of a person in encouraging

his subordinates to grow. There is a lacunae in the traits described to be included during


the performance appraisal system i.e. there is no importance given on innovation.

Including innovation in the traits can add a new initiative activity among the employees.

Reward system can also include the innovative work of the employees. The awareness

about performance appraisal system is well known among the executives but the no-

executives were to some extent unaware of this particular procedure. The help matrix

designed for the description of the marks to be awarded for a trait is very well elaborated.

In case of a new HR recruitment the clear format gives a complete idea of the procedure

followed. Looking at the new trends going on in the market there has been a minor

changes brought into the system in 2000-01.


EXHIBITS

EXIHIBIT: 1

PART- A Summary of achievements of quarterly tasks

• Tasks setting and assessment to be done after joint discussion between the

Appraisee and the initiating authority, in the prescribed format. Task setting

and assessment sheets of all the four quarters are to be enclosed to the PAR

of the appraisee.

Summary of achievements against quarterly tasks as indicated in the “quarterly

task setting & assessment sheet” of each quarter

Quarter Maximum marks Marks scored

I 100

II 100

III 100

IV 100

Average score 100

EXHIBIT: 2

PART- B Self appraisal (Appraisee should fill up this part and submit to IA at

the end of the assessment year)

B.1. What would you consider as your most significant contribution(s) in the year

under review?

B.2. What in your opinion needs to be done (by way of training or job rotation) to

further improve your level of effectiveness on the job?

B.3. What in your opinion are your areas of strength?

Name:

Designation: Signature:

Note: While filling in the form, the officer is requested to be brief and specific.

Highlight achievements in the context of annual tasks only. Routine / Normal tasks

carried out need not be mentioned.

B.4. Comments on self Appraisal

Initiating authority Reviewing authority


B.5. “Integrity” of the appraisee (Tick)

Above board Open to doubt If open to doubt, a

secret note should

be enclosed

IA

RA

EXHIBIT: 3 C.2. Scale of gradation:


Performance

rating


EXHIBIT: 4

Part- D Qualitative assessment of the appraisee (Pen Picture)

The IA and RA to comment on:

• The appraisee’s attitude towards his work, his colleagues, superiors and sub

ordinates.

• His general demeanour, security consciousness, his sociability and co-

curricular activities.

• His reaction to the feedback on the areas of improvements; and

improvements, if any shown by him.

• Any other comments.


EXHIBIT: 5

Part- E General assessment and management review categorization.

Assessment

authorities

Strengths Areas requiring

improvements

Management

review

categorization (ref.

note)


Initiating authority

Reviewing

authority

Note: Cat – A: An officer who has high degree of potential for advancement.

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

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

EXHIBIT: 6

Part- F Training / developmental needs

Assessment authority Experience / job rotation Training / developmental

needs (indicate areas)


Reviewing authority

Signature of IA:

Name:

Designation / grade:

Department:

Signature of RA:

Name:

Designation / grade:

Department:

EXHIBIT: 7

Part- G G.1. Evaluation by performance review board (In case of annual reports only)

(To be recorded by the secretary of the performance review board. PRB to consult

IA / RA, wherever necessary, if they are not the members of PRB, before awarding

final marks/ performance rating. Final marks / performance rating to be awarded

based on the scale of gradation at part C.2)


Secretary:

Signature:

Name:

Date:

Chairman of PRB:

Signature:

Name:

Date:


Name: Signature:


EXHIBIT: 8

Part- H Illustrative list of areas of training:

1) General management

2) Quality management / Quality control

3) Production planning and control

4) Computers

5) Materials management

6) Functional areas

7) Interpersonal relationship

8) Communication skill

9) Advanced management programme

10) Organizational developmental programme

11) Project management

12) Presentation skills

13) Negotiation skills

14) Counseling skills

15) Senior executive programme

16) Finance management

17) Others

EXHIBIT: 9

Part- I For use of HRD cell

Check list:

a) Have all relevant columns of the report been filled? : Yes / No

b) Any other remarks on the report : Yes / No

c) Feedback, if any, to be communicated to the appraisee : Yes / No

If yes, date of communication of feedback :

Name:

Designation:

Signature:

Date:

Note: i) To be checked and signed by the officer in-charge of the HRD cell of the

division / office.


Exhibit: 10

HRD cell of division / office to:

• Make available sufficient copies of “quarterly

task setting & assessment sheet” to all

departments.

• Hand over the PAR format to appraisee by

20th

March of the performance year.

• Receive the filled up PARs of the previous

year by 25th

April.

• Forward reports of officers in grades V &

above to complex / corporate office by 30th

April / 5th

May

• Convene meeting of PRB and complete part-

G of the report by 20th

May.

• Communicate feedback, if any, to the

appraisees by 31st May.

• Complete part- I of the report.

Assessment by

RA by 20th

April

Assessment of

4th

quarter by

7th

April and

completion of

report by IA

by 10th

April

Task setting for

the fourth

quarter &

assessment of

third quarter

by 7th

January

Task setting for the

third quarter &

assessment of second

quarter by 7th

January

Task setting for

the second

quarter &

assessment of

first quarter by

7th

July

Task

setting for

the first

quarter by

7th

April

PERFORMANCE APPRAISAL CYCLE


Exhibit :11

HINDUSTAN AERONAUTICS LIMITED _________________DIVISION / OFFICE

PERFORMANCE APPRAISAL REPORT

(FOR OFFICERS IN ALL GRADES )

ANNUAL PROBATION

For the period:_____To____

NAME

DESIGNATION

GRADE

DEPARTMENT

EDUCATIONAL QUALIFICATIONS:

DATE OF BIRTH:

DATE OF SUPERANNUATION:

DATE OF APPOINTMENT TO

PRESENT GRADE:

TRAINING COURSES ATTENDED DURING LAST 5 YEARS

Courses Institution From To

a) within India

b) abroad

SL No. period Designation Grade Division /

office

Department Shop

From

to

(Signature of officer from HRD cell) (Signature of the Appraisee)

I / II

PROPERTY RETURN FOR THE YEAR ENDING _________SUBMITTED: YES /

NO

WHETHER QUALIFIED IN THE LEARNING AND CERTIFICATION EXAM

(“O” LEVEL): YES / NO

MONTH AND YEAR OF PASSING:


Exhibit:12



(FOR OFFICERS IN GRADE V & VI)

ANNUAL Probation


NAME

DESIGNATION

GRADE

DEPARTMENT


DATE OF BIRTH:

DATE OF SUPERANNUATION:

DATE OF APPOINTMENT TO

PRESENT GRADE:



a) within India

b) abroad

SL No. period Designation Grade Division /

office

Department Shop

From

to


I / II

PROPERTY RETURN FOR THE YEAR ENDING _________SUBMITTED: YES /

NO


EXHIBITS

EXIHIBIT: 1

PART- A Summary of achievements of quarterly tasks

• Tasks setting and assessment to be done after joint discussion between the Appraisee and the initiating authority, in the prescribed format. Task setting and assessment sheets of all the four quarters are to be enclosed to the PAR of the appraisee.

Summary of achievements against quarterly tasks as indicated in the “quarterly task setting & assessment sheet” of each quarter

Quarter Maximum marks Marks scored

I 100

II 100

III 100

IV 100

Average score 100

EXHIBIT: 2

PART- B Self appraisal (Appraisee should fill up this part and submit to IA at

the end of the assessment year)

B.1. What would you consider as your most significant contribution(s) in the year under review?

B.2. What in your opinion needs to be done (by way of training or job rotation) to further improve your level of effectiveness on the job?

B.3. What in your opinion are your areas of strength?

Name:

Designation: Signature:

Note: While filling in the form, the officer is requested to be brief and specific. Highlight achievements in the context of annual tasks only. Routine / Normal tasks carried out need not be mentioned.

B.4. Comments on self Appraisal



B.5. “Integrity” of the appraisee (Tick)

Above board Open to doubt If open to doubt, a secret note should be enclosed

IA

RA

EXHIBIT: 3 C.2. Scale of gradation:


Performance rating


EXHIBIT: 4

Part- D Qualitative assessment of the appraisee (Pen Picture)

The IA and RA to comment on:

• The appraisee’s attitude towards his work, his colleagues, superiors and sub ordinates.

• His general demeanour, security consciousness, his sociability and co-curricular activities.

• His reaction to the feedback on the areas of improvements; and improvements, if any shown by him.

• Any other comments.


EXHIBIT: 5

Part- E General assessment and management review categorization.

Assessment

authorities

Strengths Areas requiring

improvements

Management

review

categorization (ref.

note)



Reviewing authority

Note: Cat – A: An officer who has high degree of potential for advancement. Cat - B: An officer who has potential for limited advancement. Cat- C: An officer who has no potential for advancement.

EXHIBIT: 6

Part- F Training / developmental needs

Assessment authority Experience / job rotation Training / developmental

needs (indicate areas)


Reviewing authority

Signature of IA: Name: Designation / grade: Department:

Signature of RA: Name: Designation / grade: Department:

EXHIBIT: 7

Part- G G.1. Evaluation by performance review board (In case of annual reports only) (To be recorded by the secretary of the performance review board. PRB to consult IA / RA, wherever necessary, if they are not the members of PRB, before awarding final marks/ performance rating. Final marks / performance rating to be awarded based on the scale of gradation at part C.2)


Secretary: Signature: Name: Date:

Chairman of PRB: Signature: Name: Date:


Name: Signature:


EXHIBIT: 8

Part- H Illustrative list of areas of training: 18) General management 19) Quality management / Quality control 20) Production planning and control 21) Computers 22) Materials management 23) Functional areas 24) Interpersonal relationship 25) Communication skill 26) Advanced management programme 27) Organizational developmental programme 28) Project management 29) Presentation skills 30) Negotiation skills 31) Counseling skills 32) Senior executive programme 33) Finance management 34) Others

EXHIBIT: 9

Part- I For use of HRD cell Check list: a) Have all relevant columns of the report been filled? : Yes / No b) Any other remarks on the report : Yes / No c) Feedback, if any, to be communicated to the appraisee : Yes / No If yes, date of communication of feedback :

Name: Designation:

Signature: Date:

Note: i) To be checked and signed by the officer in-charge of the HRD cell of the division / office.


Exhibit: 10

HRD cell of division / office to:

• Make available sufficient copies of “quarterly task setting & assessment sheet” to all departments.

• Hand over the PAR format to appraisee by 20th March of the performance year.

• Receive the filled up PARs of the previous year by 25th April.

• Forward reports of officers in grades V & above to complex / corporate office by 30th April / 5th May

• Convene meeting of PRB and complete part- G of the report by 20th May.

• Communicate feedback, if any, to the appraisees by 31st May.

• Complete part- I of the report.

Assessment by RA by 20th

April

Assessment of 4th quarter by 7th April and completion of report by IA by 10th April

Task setting for the fourth quarter & assessment of third quarter by 7th January

Task setting for the third quarter & assessment of second quarter by 7th January

Task setting for the second quarter & assessment of first quarter by 7th July

Task setting for the first quarter by 7th April

PERFORMANCE APPRAISAL CYCLE


Exhibit :11



(FOR OFFICERS IN ALL GRADES )

ANNUAL PROBATION


NAME DESIGNATION GRADE DEPARTMENT


DATE OF BIRTH: DATE OF SUPERANNUATION:

DATE OF APPOINTMENT TO PRESENT GRADE:



a) within India

b) abroad

SL No. period Designation Grade Division / office

Department Shop

From to


I / II

PROPERTY RETURN FOR THE YEAR ENDING _________SUBMITTED: YES / NO

WHETHER QUALIFIED IN THE LEARNING AND CERTIFICATION EXAM (“O” LEVEL): YES / NO MONTH AND YEAR OF PASSING:


Exhibit:12



(FOR OFFICERS IN GRADE V & VI)

ANNUAL Probation


NAME DESIGNATION GRADE DEPARTMENT


DATE OF BIRTH: DATE OF SUPERANNUATION:

DATE OF APPOINTMENT TO PRESENT GRADE:



a) within India

b) abroad

SL No. period Designation Grade Division / office

Department Shop

From to


I / II

PROPERTY RETURN FOR THE YEAR ENDING _________SUBMITTED: YES / NO


BIBILOGRAPHY:

Websites

www.hal-india.com

www.google.com

www.hrsolutions.com

Journals

Performance appraisal format of Hindustan Aeronautics Limited

HR magazines

Documents

A Study of Performance Appraisal System for Executives