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CHAPTER I

INTRODUCTION

INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

Human resource is a major resource in the effective working of the organization. This resource

needs to be handled in a systematic process for achieving optimized utilization of the other

resource.HRM is a process of bringing people and organization together, so that the goals of

each are met. It is the part of management process which is concerned with management of

resource in an organization.

It tries to secure best from people by winning their whole hearted co-operation. In short, it may

be defined as the process of procuring, development and maintaining competent work force to

achieve the goals of the organization in a effective and efficient manner.

Meaning

HRM is “the process of accomplishing organization objectives by acquiring, retaining,

terminating, developing and properly using the human resource in the organization

Definition

According to D. Yoder and others-“it is that phase of management which deals with the effective

control and use of manpower and distinguished from other sources of power”.

Scope of HRM

The scope of HRM is indeed vast. All major activities in the working life of a worker from the

time of his or her entry into an organization until he or she leaves comes under the preview of

HRM

Specified HR activities includes-

HR planning

Job analysis and design

Recruitment and selection

Orientation and placement

Training and development

Performance management

Performance appraisal

Job evaluation

Employee and executive remuneration

Motivation and communication

Welfare

Safety and health

Industrial relation and the like

HRM vs HRD

HRM AND HRD are used interchangeably, but these two are different terms.HRD is at the

center of HRM. so HRM is a wider term then HRD. there is a growing need to develop skills,

talents, capabilities, potentialities of people in the organization and this task is taken up in

HRM.HRD aims to develop individual employee in accordance with his aspiration and

potentialities on the one hand, the company’s requirement on the other.HRD programs are

described as training and educating programs

T.V.Roa and Udai Pareek have given six dimension of HRD

Performance appraisal

Employee counseling

Career development and planning

Training

Organizational development

INTRODUCTION TO PERFORMANCE APPRAISAL

Performance appraisal is the systematic evaluation of the individual with respect of his

performance on the job and his potential for development. Performance appraisal is defined as a

systematic, periodic evaluation of the work of an individual of an organization usually made by a

superior or someone in a position to observe his performance.

Traditionally appraising the individual performance has been know as merit rating, in recent

year, several newer terms have been coined to describe this method. Some of them are

performance appraisal, progress report, performance review, performance evaluation, employee

appraisal, personal review and so on.

Appraisals are carried out for helping the organization to determine the individual objectives,

promotion transfer and training needs and also personality development. Then appraiser though

accepting the above aims may see the appraisal interview having different purpose.

Unfortunately the appraisal so often seems something to be feared.

In performance appraisal, it is essential that the rates and raters, are fully aware of the system and

understand the methods for achieving and rewarding performance. The objectives or the purpose

of performance appraisal, the standards set, the methods followed and duration should be clear to

everyone who participates in it.

Performance appraisal is the step where the management finds out how effective it has been in

hiring and placing the employee in the organization.

In other word performance appraisal is a method of evaluating the behavior of employees in the

work spot, normally including both the quantities as well as qualitative aspects of job

performance.

Performance appraisal is a systematic and objective way of judging the relative worth or ability

of an employee in performing his job.

MEANING

Performance appraisal is “the process of evaluating the performance and qualification of

employees in terms of requirement of the job for which one is employed for the purpose of

administration including placement, selection for promotion, providing financial rewards and

other actions which require differential treatment among the member of group as distinguished

from actions affecting all members equally. Thus it is a process of estimating or judging the

value, excellence, qualities or status of employees individually or collectively in a group. It is a

part of staffing process.

DEFINATION

According to dale s. beach, “performance appraisal is the systematic evaluation of the individual

with respect to his/her performance on the job and his/her potential for development”.

According to Randall s Schuler, “Performance appraisal is the formal structure system of

measuring and evaluating an employee’s job related behavior and outcomes to discover how and

why the employee is presently performing on the job and how the employee can perform more

effectively in the future so that the employee, organization and society all are benefited”.

NEED FOR PERFORMANCE APPRAISAL:

Performance appraisal is needed in order to:

Provide feedback information about the level of achievement and behavior of subordinate.

Enable an organization to maintain an inventory of the number and quality of all manager

and to identify their training needs and aspiration so that it can be met.

Provide information about the performance ranks basing on which decision regarding salary

fixation, promotion, demotion and transfer decision are taken.

Suggesting ways of improving the employee’s performance after knowing that he has not

been up to mark in the review period.

Provide information, which helps to counsel the subordinates.

Prevent grievances and indisciplinary activities.

OBJECTIVES OF PERFORMANCE APPRAISAL:

To create and maintain satisfactory level of performance

To help each employees to understand more his role and become clear about his function

To contribute to the employee growth an development through training self and management

development programs

To help each employee to understand his strength and weekness with respect to his role and

functions in the organization

To help the superiors to have a proper understanding about their subordinates

To ensure organization effectiveness through correcting employees for standards and

improved performance and suggestion the change in the employee behavior

To guide job changes with help of continuous ranking

To provide information for making decision regarding lay off, retrenchment and so on

To facilitate fair and equitable compensation based on performance

To facilitate testing and validating selection test, interview techniques etc, through

comparing their scores with performance appraisal ranks.

USES OF PERFORMANCE APPRAISAL:

Performance appraisal enables management to make effective decision or correct their earlier

decision relating to the following issues

Performance improvement

Performance feedback allows employee, management and personal specialists to intervene with

appropriate action to improve performance.

Compensation adjustment

Performance evaluation helps the decision makers to determine who should receive the pay

raises

Placement decision

Promotion, transfer and demotions are demotions are usually based on past or anticipated

performance. Often promotions are the rewards for the past performance.

Career planning and development

Performance feedback guides career decision about specific career paths one should investigate.

Information inaccuracies

Poor performance may indicate error in job analysis, human resource plans or other personal

management information system

Equal employment opportunities

Accurate performance appraisals that actually measure job related performance ensure that

internal placement designs are not discriminatory

External changes

Sometimes performance is influenced by factors outside the work environment such as family,

health or other personal matters. If uncovered through appraisal, the human resource department

may be able to provide assistance

Feedback to human resource

Performance appraisal gives the necessary feedback to the human resource department regarding

all the aspects of the employee, which can be used by them to draw conclusions about employee.

THE PROCESS OF PERFORMANCE APPRAISAL SYSTEM:

Establish Performance Standards:

At the time of designing a job description, performance standards are usually developed for

the position. These standards should be clear and objective to be understood and measured.

These standards should be discussed with the supervisors to find out which different factors

are to be incorporated, weights, and points to be given to each factor. Then these point should

be indicated on the Appraisal Form, for appraising the performance of the employees.

Communicate Performance Expectations to employees:

The next step is to communicate these standards to the employees, otherwise the employees

would find it difficult to guess what is expected of them.

Measure actual Performance:

Four sources of information are frequently used to measure actual performance:

o personal observation,

o statistical reports,

o oral reports,

o written reports.

Compare actual Performance with Standards:

The employee is apprised and judged of his potential for growth and advancement. Attempts are

made to note deviations between ‘standard performance’ and ‘actual performance’.

Discuss the Appraisal with the Employee:

At the next stage, the results of appraisal are discussed periodically with the employees, where

good points, weak points, and difficulties are indicated and discussed so that performance is

improved.

Indicate Corrective Action:

The final step is the initiation of corrective action when necessary. Coaching and counseling may

be done or special assignment and projects may be set; persons may be deputed for formal

training courses, and decision-making responsibilities and authority may be delegated to the

subordinates.

STEPS FOR DEVELOPING A SYSTEMATIC PERFORMANCE

APPRAISAL:

Identify key performance criteria

Development of key performance criteria should be based on a comprehensive job description

and undertaken in consultation with employees.

Develop appraisal measures

In order to obtain accurate and valid performance appraisals, appraisal measures should be

tailored to the specific job or “job Steps for developing a systematic performance appraisal

family” (i.e., groups of similar jobs). An evaluation of factors in the work environment which

help or hinder performance is also recommended. This ensures that realistic expectations are set

for employee’s performance, and is also likely to increase the perceived fairness and

acceptability of performance appraisals.

Collect performance information from different sources

Traditionally, it has been the sole responsibility of managers / supervisors to assess performance.

However, other organizational members (e.g., clients, coworkers, subordinates) can be a valuable

source of information as they are likely to have exposure to different aspects of an employee’s

performance. Collecting information from multiple sources can increase the accuracy of

performance evaluation (i.e., reduce bias), and increase employee’s perceptions of fairness

Conduct an appraisal interview

The two central purposes of the appraisal interview are to:

o Reflect on past performances to identify major achievements, areas for further improvement,

and barriers / facilitators to effective performance

o . Identify goals and strategies for future work practice.

o The appraisal interview should be a constructive, two-way exchange between the supervisor

and employee, with preparation for the interview done by both parties beforehand.

o . Evaluate the appraisal process

FIVE DIFFERENT SOURCES OF PERFORMANCE APPRAISAL ARE:

Manager / supervisor appraisals

Self appraisals

Co-worker appraisals

Subordinate appraisals

Client appraisals.

Manager / supervisor appraisals:

Managers / supervisors play a central role in the appraisal process, and should always be

included as one of the main appraisers.

In essence, managers and supervisors have two roles in performance appraisal:

o “Judge”: assessing performance

o “Coach”: providing constructive feedback and identifying areas for improvement.

Performing both roles simultaneously can be difficult. Employees may be reluctant to admit

areas for improvement if performance assessment is linked with desired outcomes such as pay,

promotion or opportunities to work in desired areas. One solution is to separate the judge and

coach roles by conducting separate appraisal meetings.

Self-appraisals:

The process of evaluating one’s own performance can help to increase employee’s commitment

to the appraisal process, perceptions of appraisal fairness, and satisfaction with the appraisal

process. Self-appraisal can also be useful for identifying areas for development. Not surprisingly,

self-appraisals are usually biased towards leniency.

Strategies to increase the accuracy of self appraisals include:

Using clear definitions of performance criteria linked to specific, observable behaviors

Informing employees that their ratings will be checked and compared to other sources

of appraisal (i.e., for accuracy)

Ensuring employees receive regular feedback on their performance.

It is recommended that self appraisals are used for professional development purposes, rather

than for making administrative decisions (i.e., pay increases, promotion).

Co-worker appraisals:

Co-workers can provide valuable feedback on performance, particularly where teamwork occurs.

Co-workers are often aware of different aspects of a employee’s performance that managers may

not have the opportunity to observe. In addition, as there is usually more than one co-worker who

rates a worker’s performance, their evaluations tend to be more reliable. Co-worker evaluations,

however, may be biased towards those individuals most well liked in an organisation (i.e.,

friendship bias). Furthermore, co-worker appraisals may have a negative impact on teamwork

and cooperation if employees are competing with one another for organizational incentives and

rewards. It is recommended that co-worker appraisals are used for professional development

rather than administrative decisions.

Subordinate appraisals:

Subordinates are a valuable source of information regarding particular aspects of a supervisor or

leader’s performance such as communication, team building or delegation. Subordinates can

provide feedback to help managers / supervisors develop their skills in these areas. The focus

should be on aspects of managerial performance that subordinates are able to comment upon.

This source of appraisal may only be appropriate in larger organizations where there are

sufficient subordinates to allow anonymity.

Client appraisals:

Clients may also offer a different perspective on a employee’s performance, particularly for jobs

that require a high degree of interaction with people. For example, client appraisals can be a

valuable source of feedback regarding the quality of service provision (e.g., the quality of

interaction, degree of empathy, level of support, degree of professionalism).

Organizations often have performance contracts that specify goals and deliverables for client

outcomes. Whilst it is important that organizational goals and deliverables are reflected in the

appraisal criteria for individuals and teams, it is recommended that particular care be taken if

incorporating client outcomes.

Relying on client outcomes as an indicator of performance can have undesirable effects due to

the complex and sensitive nature of work. A range of factors may influence client outcomes,

many of which are outside the control of an individual employee. It is rare for a successful (or

otherwise) outcome to be the sole result of one person’s efforts. This makes client outcomes a

poor reflection of the quality of treatment provided by the employee.

STRATEGIE TO SUPPORT APPRAISER AND ENHANCE APPRAISAL

ACCURACY:

Rating another person’s performance is not an easy task, particularly with complex jobs or

performance criteria. Strategies to support appraisers and increase the likelihood of accurate

assessments include:

Providing practical training in rating techniques, which includes opportunities to

practice appraising performance and providing feedback

Limiting the assessment to performance criteria that an appraiser has observed /

experienced in regard to the employee

Providing structured assessment tools with clear explanations regarding the criteria to

be assessed, and performance standards.

METHODS OF PERFORMANCEAPPRAISAL:

Past-oriented methods

Rating Scales:

The rating scale method offers a high degree of structure for appraisals. Each employee trait

or characteristic is rated on a bipolar scale that usually has several points ranging from

“poor” to “excellent” (or some similar arrangement).

The traits assessed on these scales include employee attributes such as cooperation,

communications ability, initiative, punctuality and technical (work skills) competence. The

nature and scope of the traits selected for inclusion is limited only by the imagination of the

scale’s designer, or by the organization’s need to know.

The one major provision in selecting traits is that they should be in some way relevant to the

appraisee’s job.

Advantages

The greatest advantage of rating scales is that they are structured and standardised. This allows

ratings to be easily compared and contrasted - even for entire workforces.

Each employee is subjected to the same basic appraisal process and rating criteria, with the same

range of responses. This encourages equality in treatment for all appraisees and imposes standard

measures of performance across all parts of the organization.

Rating scale methods are easy to use and understand. The concept of the rating scale makes

obvious sense; both appraisers and appraisees have an intuitive appreciation for the simple and

efficient logic of the bipolar scale. The result is widespread acceptance and popularity for this

approach.

Disadvantages

Trait Relevance

Are the selected rating-scale traits clearly relevant to the jobs of all the appraisees? It is

inevitable that with a standardized and fixed system of appraisal that certain traits will have a

greater relevance in some jobs than in others.

For example, the trait “initiative” might not be very important in a job that is tightly defined and

rigidly structured. In such cases, a low appraisal rating for initiative may not mean that an

employee lacks initiative. Rather, it may reflect that fact that an employee has few opportunities

to use and display that particular trait. The relevance of rating scales is therefore said to be

context-sensitive. Job and workplace circumstances must be taken into account.

Systemic Disadvantage

Rating scales, and the traits they purport to measure, generally attempt to encapsulate all the

relevant indicators of employee performance. There is an assumption that all the true and best

indicators of performance are included, and all false and irrelevant indicators are excluded.

This is an assumption very difficult to prove in practice. It is possible that an employee’s

performance may depend on factors that have not been included in the selected traits. Such

employees may end up with ratings that do not truly or fairly reflect their effort or value to the

organization. Employees in this class are systemically disadvantaged by the rating scale method.

Perceptual Errors

This includes various well-known problems of selective perception (such as the horns and halos

effect) as well as problems of perceived meaning.

Selective perception is the human tendency to make private and highly subjective assessments of

what a person is “really like”, and then seek evidence to support that view (while ignoring or

downplaying evidence that might contradict it).

This is a common and normal psychological phenomenon. All human beings are affected by it.

In other words, we see in others what we want to see in them.

An example is the supervisor who believes that an employee is inherently good (halo effect) and

so ignores evidence that might suggest otherwise. Instead of correcting the slackening employee,

the supervisor covers for them and may even offer excuses for their declining performance.

On the other hand, a supervisor may have formed the impression that an employee is bad (horns

effect). The supervisor becomes unreasonably harsh in their assessment of the employee, and

always ready to criticize and undermine them.

The horns and halo effect is rarely seen in its extreme and obvious forms. But in its more subtle

manifestations, it can be a significant threat to the effectiveness and credibility of performance

appraisal.

Perceived Meaning

Problems of perceived meaning occur when appraisers do not share the same opinion about the

meaning of the selected traits and the language used on the rating scales.

For example, to one appraiser, an employee may demonstrate the trait of initiative by reporting

work problems to a supervisor. To another appraiser, this might suggest an excessive dependence

on supervisory assistance - and thus a lack of initiative.

As well, the language and terms used to construct a scale - such as “Performance exceeds

expectations” or “Below average skill” - may mean different things to different appraisers.

Rating Errors

The problem here is not so much errors in perception as errors in appraiser judgement and

motive. Unlike perceptual errors, these errors may be (at times) deliberate.

The most common rating error is central tendency. Busy appraisers, or those wary of

confrontations and repercussions, may be tempted to dole out too many passive, middle-of-the-

road ratings (e.g., “satisfactory” or “adequate”), regardless of the actual performance of a

subordinate. Thus the spread of ratings tends to clump excessively around the middle of the

scale.

This problem is worsened in organizations where the appraisal process does not enjoy strong

management support, or where the appraisers do not feel confident with the task of appraisal.

Check-list Method:

Under this method, checklist of “Statements of Traits” of employee in the form of Yes or No

based questions is prepared. Here, the rater only does the reporting or checking and HR

department does the actual evaluation. The rater concerned has to tick appropriate answers

relevant to the appraises. When the check-list is completed, it is sent to HR department for

further processing. Various questions in the check list may have either equal weightage or more

weightage may be given to those questions which are more important. The HR department then

calculates the total scores which show the appraisal result of an employee.

Advantages :

economy, ease of administration, limited training required, standardization.

Disadvantages

Rater’s biases, use of improper weights by HR Dept, does not allow rater to give

relative ratings.

Force Choice Method:

A series of statements arranged in the blocks of two or more are given and the rater indicates

which statement is true or false. The rater is forced to make a choice. HR department does actual

assessment.

Advantages

Absence of personal biases because of forced choice.

Disadvantages

Statements may not be correctly framed.

Force Distribution Method: One of the problems faced in large organizations is relative

assessment tendencies of raters. Some are too lenient and others too severe. This method

overcomes that problem. It forces everyone to do a comparative rating of all the employees on a

predetermined distribution pattern of good to bad. Say 10% employees in Excellent Grade, 20%

in Good Grade, 40% in Average Grade, 20% in Below Average Grade and 10% in unsatisfied

grade. The real problem of this method occurs in organizations where there is a tendency to pack

certain key departments with all good employees and some other departments with discards and

laggards. Relatively good employees of key departments get poor rating and relatively poor

employees of laggards’ departments’ get good rating.

Critical Incident Method:

In this method, only critical incidents and behavior associated with these incidents are taken for

evaluation. This method involves three steps. A test of noteworthy on the

job behavior is prepared. A group of experts then assigns scale values to them depending on the

degree of desirability for the job. Finally, a checklist of incidents which define good and bad

employees is prepared.

Advantages

This method is very useful for discovering potential of employees who can be useful in critical

situation.

Disadvantages

Negative incidents are, generally, more noticeable than positive ones.

The recording of incidents is a core to the superior and may be put off and

easily forgotten.

Overly close supervision may result.

Essay Method:

In the essay method approach, the appraiser prepares a written statement about the employee

being appraised. The statement usually concentrates on describing specific strengths and

weaknesses in job performance. It also suggests courses of action to remedy the identified

problem areas.

The statement may be written and edited by the appraiser alone, or it be composed in

collaboration with the appraisee.

Advantages

The essay method is far less structured and confining than the rating scale method. It permits the

appraiser to examine almost any relevant issue or attribute of performance. This contrasts sharply

with methods where the appraisal criteria are rigidly defined.

Appraisers may place whatever degree of emphasis on issues or attributes that they feel

appropriate.

Thus the process is open-ended and very flexible. The appraiser is not locked into an appraisal

system the limits expression or assumes that employee traits can be neatly dissected and scaled.

Disadvantages

Essay methods are time-consuming and difficult to administer. Appraisers often find the essay

Technique more demanding than methods such as rating scales. The techniques greatest

advantage - freedom of expression - is also its greatest handicap. The varying writing skills of

appraisers can upset and distort the whole process. The process is subjective and, in

consequence, it is difficult to compare and contrast the results of individuals or to draw any

broad conclusions about organizational needs

Grading

In this method, certain categories of abilities of performance are defined well in advance and

person are put in particular category depending on their traits and characteristics. Such

categories may be definitional like outstanding, good, average, poor, very poor or may be in

terms of letter like A, B, C, D etc with A indicating the best and D indicating the worst. This

method, however, suffers from one basic limitation that the rater may rate most of the employees

at higher grades.

Performance Tests & Observations:

This is based on the test of knowledge or skills. The tests may be written or an actual

presentation of skills. Tests must be reliable and validated to be useful.

Advantage

Tests only measure potential and not attitude. Actual performance is more a function

of attitude of person than potential.

Disadvantages

Sometimes costs of test development or administration are high

Confidential Reports :

Though popular with government departments, its application in industry is not ruled out. Here

the report is given in the form of Annual Confidentiality Report (ACR). The system is highly

secretive and confidential. Feedback to the assessee is given only in case of an adverse entry.

Disadvantage is that it is highly prone to biases and recency effect and ratings can be

manipulated because the evaluations are linked to future rewards like promotions, good postings,

etc.

Comparative Evaluation Method (Ranking & Paired Comparisons):

These are collection of different methods that compare performance with that of other co-

workers. The usual techniques used may be ranking methods and paired comparison method.

o Ranking Method :

Superior ranks his worker based on merit, from best to worst. However how best and why best

are not elaborated in this method. It is easy to administer.

o Paired Comparison Method :

In this method each employee is paired with every other employee in the same cadre and then

comparative rating done in pairs so formed. The number of comparisons may be calculated with

the help of a formula – N x (N-1) / 2. The method is too tedious for large departments and often

such exact details are not available with rater.

Future-Oriented Methods

MBO (Appraisal By Results ) :

The use of management objectives was first widely advocated in the 1950s by the noted

management theorist Peter Drucker. MBO (management by objectives)methods of performance

appraisal are results-oriented. That is, they seek to measure employee performance by examining

the extent to which predetermined work objectives have been met. Usually the objectives are

established jointly by the supervisor and subordinate. Once an objective is agreed, the employee

is usually expected to self-audit; that is, to identify the skills needed to achieve

the objective. Typically they do not rely on others to locate and specify their strengths and

weaknesses. They are expected to monitor their own development and progress.

Advantages

The MBO approach overcomes some of the problems that arise as a result of assuming that the

employee traits needed for job success can be reliably identified and measured. Instead of

assuming traits, the MBO method concentrates on actual outcomes. If the employee meets or

exceeds the set objectives, then he or she has demonstrated an acceptable level of job

performance. Employees are judged according to real outcomes, and not on their potential for

success, or on someone’s subjective opinion of their abilities. The guiding principle of the MBO

approach is that direct results can be observed, whereas the traits and attributes of employees

(which may or may not contribute to performance) must be guessed at or inferred. The MBO

method recognizes the fact that it is difficult to neatly dissect all the complex and varied

elements that go to make up employee performance.

MBO advocates claim that the performance of employees cannot be broken up into so many

constituent parts - as one might take apart an engine to study it. But put all the parts together and

the performance may be directly observed and measured.

Disadvantages

MBO methods of performance appraisal can give employees a satisfying sense of autonomy and

achievement. But on the downside, they can lead to unrealistic expectations about what can and

cannot be reasonably accomplished. Supervisors and subordinates must have very good “reality

checking” skills to use MBO appraisal methods. They will need these skills during the initial

stage of objective setting, and for the purposes of self-auditing and self-monitoring.

Unfortunately, research studies have shown repeatedly that human beings tend to lack the skills

needed to do their own“reality checking”. Nor are these skills easily conveyed by training.

Reality itself is an intensely personal experience, prone to all forms of perceptual bias. One of

the strengths of the MBO method is the clarity of purpose that flows from a set of well-

articulated objectives. But this can be a source of weakness also. It has become very apparent

that the modern organization must be flexible to survive. Objectives, by their very nature, tend to

impose a certain rigidity. Of course, the obvious answer is to make the objectives more fluid and

yielding. But the penalty for fluidity is loss of clarity. Variable objectives may cause employee

confusion. It is also possible that fluid objectives may be distorted to disguise or justify failures

in performance.

Assessment Center Method :

This technique was first developed in USA and UK in 1943. An assessment centre is a central

location where managers may come together to have their participation in job related exercises

evaluated by trained observers. It is more focused on observation of behaviours across a series of

select exercises or work samples. Assesses are requested to participate in in-basket exercises,

work groups, computer simulations, role playing and other similar activities which require same

attributes for successful performance in actual job.

Advantages

Well-conducted assessment centre can achieve better forecasts of future performance and

progress than other methods of appraisals. Also reliability, content validity and predictive ability

are said to be high in Assessment Centers. The tests also make sure that the wrong people are not

hired or promoted. Finally, it clearly defines the criteria for selection and promotion.

Disadvantages

Concentrates on future performance potential. No assessment of past performance. Costs of

employees travelling and lodging, psychologists. Ratings strongly influenced by assessee’s inter-

personal skills. Solid performers may feel suffocated in simulated situations.

360 Degree Appraisal:

It is a technique in which performance data/feedback/rating is collected from all sections of

people employee interacts in the course of his job like immediate supervisors, team members,

customers, peers, subordinates and self with different weightage to each group of raters. This

technique has been found to be extremely useful and effective. It is especially useful to measure

inter-personal skills, customer satisfaction and team building skills. One of the biggest

advantages of this system is that assesssees cannot afford to neglect any constituency and has to

show all-round performance. However, on the negative side, receiving feedback from multiple

sources can be intimidating, threatening, expensive and time consuming.

Psychological Appraisals:

These appraisals are more directed to assess employees potential for future performance rather

than the past one. It is done in the form of in-depth interviews, psychological tests, and

discussion with supervisors and review of other evaluations. It is more focused on employees

emotional, intellectual, and motivational and other personal characteristics affecting his

performance. This approach is slow and costly and may be useful for bright young members who

may have considerable potential. However quality of these appraisals largely depends upon the

skills of psychologists who perform the evaluation

Performance counseling

Once the performance of the employee is appraised, the organization has to practice and pay

enough attention to perfect counseling, to review the system that aims at developing employee.

The superior after appraisal should tell the appraised employee in which he is good and in which

he is not. He should also guide him to improve in which he does not master.

Thus, the purpose of counseling is to help employee to be aware of his own strength and

weakness, opportunities available for development and the threats in the form of technological

changes etc .The superior can do performance counseling in the form of interviews.

PROBLEMS OF PERFORMANCE APPRAISAL:

None of the methods for appraising is absolutely valid or reliable. each has its own strengths and

weakness

Failure of superior in conducting perfect appraisal and post performance appraisal interview.

Most part of appraisal is based on subjectivity

Negative rating affect interpersonal relations

Feedback and post appraisal interview may have setback on production

Some superiors completed appraisal reports within a few minutes

Relationship between appraisal rates and performance after promotion was not significant

Some rating particularly about the potential appraisal are not purely based on work

ESSENTIALS FOR A SUCCESSFUL PERFORMANCE APPRAISAL

SYSTEM

Basing appraisals on accurate and current job descriptions

Ensuring that appraisers have adequate knowledge and direct experience of the employee’ s

performance

Providing ratings via aggregated anonymous feedback when multiple sources of

Information are used

Incorporating performance appraisals into a formal goal setting system

Offering adequate support and assistance to employees such as professional development

opportunities in order to improve their performance

Conducting appraisals on a regular basis (at least two times a year) rather than annually.

CHARACTERISTICS OF AN EFFECTIVE PERFORMANCE APPRAISAL

SYSTEM :

Simple and easy to understand

Managers doing the evaluation must perceive that it is in their personal and career interests to

conduct accurate appraisals

Should ensure employee participation

Communicate to the employee how they have performance

It should be objectives rather than subjective

It should emphasize on perfect and not on personality

It should communicate to all concerned people

Create an atmosphere of confidence and trust so that both supervisor and employee may

discuss matter frankly and offer suggestion

Beneficial suggestion for the organization and for the employees

Establishment of perfect standard and arrangement of post appraisal interviews

PERFPRMANCE APPRAISAL PROCESS

Objectives of appraisal

The first and foremost step in the appraisal process is to see the objectives of performance

appraisal, that is what is to be measured in the process for what it is to be measured and the

like.

Establish job expectation

The second step in the appraisal process is to establish job expectation. This includes

informing the employee what is expected of him or her on the job. Individual should not be

expected to begin his job until he understands what is expected of them.

Design an appraisal program

Objectives of PA

Establish job expectations

Appraisal performance

Performance appraisal

Achieve appraisal data

Use appraisal data for appropriate purpose

Performance

Management

Design appraisal programme

Designing an appraisal programme poses several questions which need answer. they are:

o Formal v/s informal appraisal

o Whose performance is to be assessed?

o Who are the raters?

o What problems are encountered?

o How to solve the problems?

o What should be evaluated?

o When to evaluate?

o What methods of appraisal are to be used? And the like.

Appraise the performance

the next step in the appraisal process is to measure the performance. What then is performance?

Performance is essentially what an employee does or does not do employee performance

common to most jobs include the following elements.

o Quantity of output

o Quality of output

o Timeliness of output

o Presence of work

o Co-operativeness

o Job knowledge

o Leadership abilities

o Judgment

o Supervision

o versatility

o Health

Performance measurement needs to be based on the benchmarks listed above.

Performance management

Performance appraisal provides feedback about employee job performance. Getting feedback is

not enough. Three more activities need to be undertaken to complete the process, they are:

o Performance interview

o Archiving performance data

o Use of appraisal data

LIMITATIONS OF PERFORMANCE APPRAISAL

Performance appraisals are subject to a wide variety of in accuracies and biases referred to as

“rating error”. These errors occur in the raters observation, judgment and information processing

and can seriously affect assessment result, the most common rating errors are:

Leniency or severity/strictness

The evaluation has their own value system which acts as a standard for evaluation. Some

evaluation may be lenient and will give rating to everyone. On the other hand, an evaluator may

be strict and will give low rating to all persons, the tendency of high rating is known as positive

leniency error and tendency to give lower rating is called negative leniency error.

Central tendency

This occurs when employees are incorrectly rated near the average or middle of the scale. The

altitude of rater is to play safe this safe playing attitude stems from certain doubts and anxieties

which the raters have while assessing the rates. neither he will rate them as a poor performance

nor he will rate them outstanding.

Halo error

A halo error takes place when one aspect of an individual’s performance influence the evaluation

of the entire performance of the individual. The appraiser judges a person on the strength of a

specific trait and doesn’t base his inference on his overall performance.

Rater’s effect

This includes favoritism, stereotyping and hostility. Excessively high or low scores are given

only certain individuals or group based on the rater’s attitude towards the rate, not on actual

outcomes or behavior.

Primacy or regency effect

The rater’s ratings are heavily influenced either by behavior exhibitive the rater during the early

stages of the review period (primacy)or by outcome or behavior exhibited by the rate near the

end of the review period(renency).

Perpetual set

This occurs when the raters assessment is influenced by previously held beliefs.

Performance dimension order

Two or more dimensions on a performance instrument followed or closely follow each other and

both describe or rotate to a similar quality. The rater raters the dimension accurately and rates the

second dimension has been arranged in a significantly different order, the ratings might have

been different.

Spillover effect

This refers to allowing past performance appraisal rating to unjustifiably influence current

ratings. Past rating good or bad, results in similar rating for the current period although the

demonstrated behavior does not deserve the rating, good or bad.

Status effect

It refers to overrating of employee in higher level job or jobs held in high esteem and under

rating employees in lower level job or jobs held in low esteem.

CHALLENGES OF PERFORMANCE APPRAISAL

With the increased significance of performance appraisal, challenges confronting the system

are mounting. One serious challenge facing the performance appraisal system relates to

assessment of self managed terms, popularly called empowered terms, these self managed

teams create special challenges for performance appraisals-empowered teams perform

without supervisors.

To create a culture of excellence that inspired every employee to improve and lend himself or

herself to be assessed.

To align organization objective to individuals aspirations

To clear growth paths for talented individuals

To provide new challenges to rejuvenate careers that have reached the plateau stage

To forge a partnership with people for managing their careers

To empower employee to make decisions without the fear of failing

To embed teamwork in all operational processes

Debureaucratise the organization structure for ease of flow of information

HOW APPRAISAL MAY BE MADE SUCESSFUL?

The rater must be thoroughly well versed in the philosophy and nature of the rating system

factors and factor scales must be thoroughly defined, analysed and discussed.

The success of an appraisal programme depends upon:

The existence of an atmosphere of confidence and trust so that both supervisors and

employee may discuss matters frankly and offer suggestions which may be beneficial for the

organization and for an improvement of the employee

The supervisor must very thoroughly evaluate the employee’s performance so that he is

capable of meeting challenges about his ratings of his sub-ordinates

The result of performance rather than personality traits should be given due weight

suggestions for improvement should be directed towards the objective facts of the job. plans

for the future must be developed jointly after consultation with sub-ordinates.

The individual as a person should never be criticized

The supervisor should try to analyse the strengths and weaknesses of an employee and advise

him on correcting the weakness

The appraisal programme should be less time consuming and less costly at the same time, it

should bring the maximum benefit.

Which particular technique is to be adopted for appraisal should be governed by such factors

as the size, financial resources, philosophy and objectives of an organization.

The result of the appraisal, particularly when they are negative should be immediately

communicated to the employees, so that they may try to improve their performance

The post- appraisal interview should be arranged so that employees may be supplied with

feedback and the organization may be supplied with feedback and the organization may

know the difficulties under which employees work, so that their training needs may be

discovered

The standards of performance appraisal can be improved by training of the evaluators. It has

been indicated that appraisers who are trained in how to evaluate sub-ordinates tend to be

more effective appraisers than those who had not undergone such training

Lastly , many of the problems or hindrances can be minimized if right appraisal tools are

chosen

Research

Design

CHAPTER II

RESEARCH DESIGN

TITLE OF THE STUDY

“A STUDY ON EFFECTIVENESS OF PERFORMANCE APPRAISAL OF

EMPLOYEE’S OF PSU’S WITH SPECIAL REFERENCE TO BEML LIMITED”

INTRODUCTION:

Performance appraisal can be understood as the assessment of an individual’s performance in a

systematic way, the performance being measured against factors such as job knowledge, quality

of output, initiative, leadership abilities, supervision, dependability, Co-operation, judgment,

versatility, health, and the like.

The other terms used for Performance appraisal are performance rating, employee assessment,

employee performance review, performance appraisal and performance evaluation.

STATEMENT OF PROBLEM

To check the employee’s performance and their relation which effects the productivity and

efficiency of the organizational objectives. Hence the study is been initiated .

OBJECTIVE OF THE STUDY

To study the procedures used in the process of performance appraisal.

To know the level of the performance of the employees of BEML Limited.

To study the relationship between performance appraisal, promotion and pay.

To study the impact and effects of performance appraisal on the motivation and morale of

the employees in terms of their beliefs, norms, expectations, life style and work style.

To offer recommendations and suggestions to the management if necessary.

METHODOLOGY AND RESEARCH DESIGN

Survey method has been used in this research study.

The methodology here refers to the systematic method used to collect data for

the research purpose.

Here the sampling is stratified sampling. The data collection was done by using questionnaire.

The data analysis and interpretation was done using bar chart and pie chart.

SOURCES OF DATA COLLECTION

PRIMARY DATA COLLECTION:-

Interaction with the management and the employees.

Questionnaire

SECONDARY DATA COLLECTION:-

Websites

Journals

Magazines

Company manuals

SAMPLING SIZE:-50 samples

LIMITATIONS OF THE STUDY

The study is for an academic purpose only for a particular period.

Due to the time constrain some employees were not able fill the questionnaire completely.

The division of the organization are spread and the study is confined to BEML Limited.

PLAN OF ANALYSIS

In this study the plan of analysis has been done by using tools of comparison by using the pie

chart, bar graph etc and then conducting analysis of the study made and interpreting the results of

the research has been carried out.

Data collected has been tabulated, correlated and analyzed

The analyzed data has been represented in the form of graphs, charts and diagrams.

CHAPTER SCHEME

I INTRODUCTION

II RESEARCH DESIGN

III COMPANY PROFILE

IV ANALYSIS AND INTERPRETATION OF DATA

V SUMMARY OF FINDINGS, SUGGESTIONS & CONCLUSION

BIBLIOGRAPHY & ANNEXURS

CHAPTER III

COMPANY PROFILE

Bharat Earth Movers Limited (BEML) incorporation in May 1964 with its corporate offices at

Bangalore and commenced operations from 1st January 1965, the production units of the

company are located at Bangalore, Kolar gold field, and Mysore in Karnataka. The company is

engaged in the production of rail coaches, rail bus, and Direct current electrical Multipurpose

Unit for India railways, heavy duty trucks/its variants, crash fire tenders, heavy recover vehicles,

PMS bridges, and earth moving equipment’s and aggregates for Defense. Other major customers

of BEML are Coal India Limited. Natively Lignite Corporation Associated Cement Company,

Steel Authority Of India Limited and The National Hydro Electric Thermal Power Corporation.

Bharat Earth Movers Limited is a premier ISO 9000 company in India and the second largest

manufacture of earth moving equipment in Asia. A three-decade-old multi-location and multi-

product company, BEML has vital application in diverse sectors of economy such as coal,

mining, steel, cement, powder, irrigation, construction, and road building, and railway. It has

expanded its product range to cover high-quality hydraulics, heavy duty diesel engines, welding

robots and undertaking of heavy fabrication jobs.

A public sector undertaking, BEML commands 70% market share in domestic earth mover

industry. Nearly 40% of its quality has divested to financially institutions and public. BEML has

its corporate headquarters and central marketing division at Bangalore.

BEML manufactures wide range of products to meet the needs of mining, construction, power,

irrigation, fertilizer, cement, steel, and rail sectors. The earth moving equipment includes

bulldozers, dump trucks, hydraulic, excavators, wheel loaders, rope shovels, walking draglines,

motor graders, and scarpers.

BEML has recently introduced road headers and slide discharge loaders for underground mining

applications. Railway products include integral rail coaches, electrical multiple units, rail buses,

track laying equipment’s, and overhead equipment inspection cars.

BEML manufacture heavy duty trucks and trailers and hydraulic aggregates for transportation

sector. The company also manufactures high power diesel engines and heavy duty hydraulic

aggregates to meet specific customer requirements. The company plans to diversify into varied

activities including underground mining equipment, underground for petro-products, leasing,

financial services, and joint ventures abroad.

BEML is rated as the first amongst the fastest growing construction equipment in India

(construction world-NICMAR SURVEY-2005). It is today leading the infrastructure revolution

in the country with successful foray in to hi-tech metro trains. Being a multi-technology, multi-

unit, and multi-location company, BEML offers high quality products for diverse sectors of the

economy such as coal, mining, construction, power, irrigation, fertilizers, cement, steel, road

building, Defense, metro and railways. It has come to forefront of heavy engineering industry

with a track record of growth and profit in the last for decades.

With increase focus on quality, safety and productivity, BEML is evolving new technologies and

aiming at value-addition in all its process and products.

The company’s manufacturing facilities are certified under ISO 9001-2000 series. Its strategic

alliances with global partners have ensured a continuous flow of state of art technologies and

gain international competence. With impetus on market driven R&D, BEML has ruled out

several innovative products. The company has established R&D center of excellence for metro

technology to match world-class standards with grant received from planning commission,

Government of India. BEML’s nationwide network of sales offices enables buyer with ready

access to its wide range of products and services.

Its service center, repair shops and part depots provide total equipment care and availability of

machines through prompt after sales-service. Today band of products are popular in over 30

countries across the world in Asia, Europe, middle-East and Latin America. The company is in

the process of opening overseas offices at Singapore and China

BACK GROUND AND INCEPTION OF COMPANY

BEML is a PSU under the effective administration of Ministry of Defense (department of

Defense supply). The organization was setup in the late 40’s as part of HAL now known as

“HINDUSTAN AERONATICS LIMITED” to manufacture rail coaches. It gradually diversified

earth moving equipment in 1964, the company was incorporated in the first year plan when India

was very weak economically. The main objective of setting up the organization was to

manufacture heavy earth moving equipment. Rail coaches heavy duty trucks, trucks-laying

equipment, etc.

NATURE OF BUSISINESS CARRIED:

BEML is equipped in production equipment for the industries such as construction and mining

Defense aviation and the METRO and RAILWAY sector.

CONSTRUCTION AND MINING

For development in surface mining projects, BEML produces machines such as electric shovels,

hydraulic, excavators, bulldozers, wheel loaders, wheel dozer, dump trucks, motor grades,

pipelines, and tyre handlers. Besides, giants walking draglines for cost effective operations in

the open cost mines are manufactured. BEML has diversified into underground mining with

products such as side discharge loader, lad haul dumper, winch winder, randy car, and skip, etc.

BEML has an active fleet of machines to take up works related to road construction,

infrastructure, development, port handling, tuning boring, and petroleum projects.

The company is floating a joint venture soon to take upon contract mining and maintenance of

mining equipments.

DEFENCE AND CIVIL AVIATION:

BEML’s multi-role vehicle and transport trailers have found total acceptance with arms forces.

The company has started manufacturing the entire range of value added TATRA vehicles. Which

are robust and suitable for all terrain operations including bridge layer field artillery, tractor,

medium/heavy recovery vehicles and pontoon mainstream bridge system, BEML also supplies

engineering mine ploughs, armored recovery vehicles, and weapon loading equipment. For the

civil aviation sector, BEML offers passenger Aerobridges, crash fire tender and aircraft towing

tractor.

METRO AND RAILWAY SECTOR:

BEML is today geared up for manufactured and supply of hi-tech stainless steel metro to

upcoming urban infrastructure projects in various cities.

Other products supplied for Indian railways include integral rail coaches, overhead inspection

cars, track laying equipment broad gauge rail bus, treasury vans and spoil disposal vans. It also

offers electric multiple units for development in suburban services.

The company also manufactures heavy duty diesel engines, diesel generator sets, and hydraulic

aggregates. BEML has entered into alliance with international partners for several new products

with include multi utility armed vehicles, mine laying vehicles, long wall mining system,

tunneling equipment, mine protected vehicles, surface miners, etc.

COMPANY VISION:

The vision is to achieve a turnover of $1.15 billion (Rs. 5000 corers) by 2013-14, which

translates in to a compounded growth rate of 12%. The management has infused this vision into

10000 employees and will grow across all three divisions. Mining and construction segment, we

see a 15-20% growth rate will be between 8% and 1000%. At that moment two-third of our top

line and bottom line is contributed by mining and construction.

BEML has earned a modest profit of 100 million in the rail business: they have now achieved a

critical mass and hence likely to enhance contribution to the bottom line.

Build total self-reliance in earthmover and related technology.

Adopt technology to suit national requirement particularly in vital se tor such as construction,

mining, irrigation, railways, transportation, and automation.

Update current products for higher performance and reliability.

Generate know-why through applied research.

Design and develop products in identified technology areas.

Set p test facilities of evaluation of performance and reliability of vehicles and system.

COMPANY MISSION:

To achieve and retain a dominant position in the manufacture and supply of earthmoving,

mining, construction, railway, and Defense equipment by establishing high standards of

quality, capability, and reliability.

To pursue state-of-the-art environment friendly technologies as well as develop cost effective

and value-added products.

To be competitive, responsive, and continuously improve services so as to ensure total

customer satisfaction.

To grow into global company guided by a keen sense of vision and business ethics as well as

to maximize earnings.

To conserve energy eliminate and waste through optimum utilization of men, money,

materials, and machinery.

COMPANY OBJECTIVE

To maintain a dominant position in design, development, manufacture, and marketing of

defense, earthmoving, and constructions and rail and metro equipments.

To diversify and grow.

To provide total engineering solution to its customer.

To internationalize operations by enhancing exports.

To maintain state-of-art technology for all products.

Re-orientation of the business operations to match the present scenario.

Continues building of skills and competencies to bring about executive effectiveness for

management succession.

QUALITY POLICY:

“Quality is the hallmark of excellence”

At BEML, a corporate quality policy emphasizing total quality management ensures the quality

system adopted companywide to meet stringent standards and requisite performance criteria. A

separate quality spearheads the thrust towards total quality. All the manufacturing units in the

company are under ISO 9001-2000 certification.

BEML equipment works in hospitable terrain under grueling operating conditions. In order to

ensure optimum performance of equipment each product is tested in working conditions. In order

to ensure optimum performance equipment each product is tested in working condition in the

company’s own track and fields. Vendor assessment and development is a key component of the

company’s strategy for achieving total quality.

Experience professional work with vendors to improve directions to the quality improvement

activities.

“To offer products and services to the satisfaction of customers and strive to upgrade quality

continuously” is the quality adopted in BEML.

PRODUCT PROFILE:

BEML products that is “ Machine that build the nation” find their application in core sector of

economy in the country viz., mining, agriculture, energy, irrigation, cement, steel, construction,

rail, and road transport apart from Defense.

The company has three ranges of product like earth moving equipment’s, Defense product and

railways products.

The earth moving equipment’s include bulldozers, dump trucks, hydraulic excavator, wheel

loaders, wheel loaders, wheel dozers, tyre handlers, pipe layers, rope shovels, draglines, motor

graders, scrapers, water sprinklers, aircraft towing tractors, and backhoe loader. BEML has

recently introduced road headers and side discharge loaders of underground mining application,

track laying equipment, inspections cars. BEML manufacture heavy duty trucks and trailers and

hydraulics aggregates for transportation sector. apart from this, BEML also radio controls

disaster management equipment in case of emergencies.

BEML PRODUCTS

Mining machines.

Electric shovels.

Bulldozers.

Wheel dozers.

Dump trucks.

Motors graders.

BEML PRODUCTS

Mining machines.

Electric shovels.

Bulldozers.

Wheel dozers.

Dump trucks.

Motors graders.

Pipe layer and type handler.

Giant walking dragline for cost item.

DEFENSE EQUIPMENTS

BEML-Tetra T815 vvnc8*8Vehicle.

BEML-Tetra T815 VVL8*8 Vehicle.

BEML-Tetra T815 VT18*8- Tank Transportation.

BEML-Tetra T815 VVNC6*6 High Mobility Vehicle.

BEML-Tetra T815 VVNC6*6 Field Artillery Tractor.

BEML-Tetra T815 V1 4 *4 High Mobility Vehicle.

PRATHVI missile launcher.

OXIDISER carrier.

WARDHEAD carrier.

FUEL carrier vehicle.

MISSILE Transporter.

10T mobile crane.

Ammunition Loader.

Pontoon Bridge Set.

Pontoon Truck.

Truck mounted crane.

Pavement laying truck.

DOLLY.

Light recovery vehicle.

Armored recovery vehicles.

Backhoe loader transporter.

RAILWAYS

Passenger coaches.

DC electrical multiple units (DC-EMUS)

AC electrical multiple units (AC-EMUS)

Track laying equipments.

Rail bus.

Spoil disposal units (SDU)

Treasury vans.

Mail rail coaches.

DIESEL ENGIES

100-1000 hp engines for contribution and mining equipment.

Irrigation pumps.

Marine vessel engines.

Compressors.

ROAD COSNTRUCTIONS EQUIPMENT

Batching and min9ing plans.

Vibrating compactors.

Pneumatic-tired rollers.

DIASTER MANAGEMNT EQUIPMENT

Radio-controls dozers.

Hydraulic excavators with demolition attachments

ENERGY

Diesel genets-230, 360, 550KVP.

INDUSTRIAL AND AUTOMATION

Industrial welding robots.

Machine tending robots.

AREA OF OPERATION

BEML, being a public sector undertaking operates well in the global market also. The company’s

international divisions are involved in large trading as well as counter trade in countries

worldwide covering Asia and Middle East beside entering into European through UK, Italy, and

Greece.

The company commenced it overseas operations in 1969-00 and has exposed earth moving

equipment’s, rail coaches and sapper parts valued at several million US $ to countries all over

the world.

As a recognized export house, BEML has expanded operations to include exports of engineering

goods, defense items commodities, and undertaking of project management and turnkey

contracts. Despite the pressure of highly competitive market for heavy construction and mining

equipment, BEML’S export is attributed to good quality equipments and very efficient after sales

services. Fully satisfied with the BEML’s services, customers in several countries have been

placing repeat orders for the company’s equipment’s. The company is looking at global market

for future growth several countries have been identified for making a foray. In keeping with this,

the export target for the year 2009-2010 has been fixed at over Rs 500 crores, which are stiff

considering the strong foothold of competition in the world market. Exports were made to

countries like Syria, Tunisia, South Africa, Afghanistan, Bhutan, Abu Dhabi, Jordan,

Bangladesh, and Suriname in Latin America.

COMPETITORS OF BEML

COMPETITORS OF BEML

Railways Integral coach factory permbur, RCF at

Karputhala

Bulldozers Caterpillars (Hindustan Motors)

Excavators L&T, Escort, TATA

Dumpers Hindustan Motors, Volvo, TATA, TELCO,

Ashok Leyland

PRODUCT OF THEIR COLLABORATION:

PRODUCT OF COLLABORATION

Product collaboration

210M Dump Truck KOMATSU Mining System, USA

445E Electric Dump Truck KOMATSU Mining System, USA

Walking Draglines BUCYRUS International, USA

182m 10cu.m Rope Shovel BUCYRUS International, USA

Heavy Duty Trucks for defense TETRA SIPOX

METRO RAILWAY ROTEM, SOUTH KOREA

Diesel Engine KOMATSU, JAPAN

BANKERS

SBI.

Canara Bank.

SBM (State Bank Of Mysore)

Punjab National Bank.

Bank of India.

State Bank of Bikaner & Jaipur.

Central Bank of India.

INFRASTRUCTURAL FACILITIES:

BEML LIMITED

Name of the company: BEML LTD

Registered Office: BEML Soudha (Bangalore)

Corporate Office NO-23/14TH Main

S.R Nagar Bangalore-560027

Group: Public Sector Undertaking.

Activity of Manufacturing of Earth Moving Equipment,

BEML: rail Couches, and defense automotive vehicle.

Date of establishment: January, 1965.

OTHER COMPLEX

KGF COMPLEX (KOLAR GOLD FIELD)

Kolar Gold Field, located 100 km from Bangalore, spread over an area of 1850 acres; BEML has

established an extensive manufacturing base. A skilled work force of over 7400 turnout state of

the art bulldozer, hydraulic excavator, wheel force of over 7500 turnout state of the art

bulldozer, hydraulic excavator, wheel loaders, rope shoves, and walking draglines for mining and

construction industry Sophisticated CNC machines and latest technology welding equipment

have been installed.

MYSORE COMPLEX

The biggest dump truck factory in India is located at BEML’S Mysore Complex.

This unit is located about 180kms from Bangalore and occupies about 178 acres of

land, having a work force of about 2500 employees.

AREA OF OPERATION

BEML has 3 international offices, 10 regional offices and 15 districts offices and it also have 4

activity center.

INTERNATIONAL OFFIC ES”

CHINA - BEML Ltd Shanghai representative office, Shanghai PC: 200336

MALAYSIA – BEML (MALAYSIA) SNDBHD, Johar Bharu, Malaysia.

BRAZIL – BEML Brazil, state of expirito Santo Brazil.

GLOBAL OFFICE

MOROCCO

CHINA

SINGAPORE

ASSEMBLY PLANT

Brazil

GLOBAL PARTS WAREHOUSE

MALAYSIA

REGIONAL OFFICE

Bilaspur.

Chennai.

Hyderabad.

Kolkata.

Mumbai.

Nagpur.

New Delhi.

Ranchi

Jabalpur.

Singrauli.

DISTRICT OFFICE

Ahmadabad.

Asansol

Bhilai.

Bhubaneswar.

Chandrapur.

Guwahati.

Jammu.

Madurai.

Naively.

Pan Jim.

Udaipur.

THE COMPANYS SHARES ARE LISTED ON THE FOLLOWING STOCK

EXCHANGES:

The Bangalore Stock Exchange Limited, Bangalore BEML.

The Bombay Stock Exchange Limited, Mumbai 5006648.

The National Stock Exchange of India Limited, Mumbai BEML.

IT HAS BAHGGED “National Safety Awards” for many times.

Corporate Excellence Award for outstanding performances in 1987-88 among all PSU.

Best Production Award for 1989-90 received from vice-resident of India.

Armed Forces Slag Award 2004-05 has been confessed on BEML by the Indian Institution

Of Industrial Engineering, a pioneer body serving since 1957 for the cause of industrial

growth in India.

BEML is among the five PSU’s gained entry for the nomination of “Best PSU Award -

2006.”

“Honorary Fellowship Award” for CMD of BEML for his exemplary contribution as CEO of

BEML.

NIRYAT SHREE GOLD Trophy.

We at BEML manufactures of equipment for construction and mining and metro defense are

dedicated to protect and conserve the environment by minimizing eh adverse impact of the

process, product and services on the environment.

OBJECTIVE

As part EHS policy we shall continuously strive and are committed to:

Provide health and safe environment to all employees and interested parties.

Comply with all applicable legal and regulatory requirements.

Conserve natural resources and initiate and achieve energy saving.

Minimize process waste, promote recovery, reuse, and recycling of material and develop eco

friendly waste disposal system.

Improve to minimize environment health and safety hazards and hazardous process.

Train and build awareness among all our employees of EHS issues on a continues basis.

Communicate EHS policy to all employees, stake holder, investors, and other.

BOARD OF DIRECTORS

Chairman and Managing Director:

Sri V.RS. Natarajan.

Functional Directors

Sri V Mohan, Director (Defense)

Shri M. Poongavanam, Director (Mining & Construction)

Shri P Dwarakanath, Director (Metro & Rail)

Shri M Pitchiah, Director (Finance)

Shri M Nellaiappan, Director (HR)

OFFICIAL DIRECTOR

Shri Satyajeet Ranjan, Jt. Secretary (Exports), Ministry Of Defense

Shri P.K. Mishra., Addl, Financial Advisor & Jt. Secretary, Ministry Of Defense (Finance)

Independent Directors

Shri J.P, Singh, IAS (Retd)

Shri M.B.N. Roa

Shri J.P., Batra

Award

CMD received the 'SCOPE Award for Excellence and Outstanding Contribution to the Public

Sector Management - Medium PSE CategoryD'  for the year 2006-07

CMD received the 'BEST PSU AWARD'  instituted by India's leading B School, Indian

Institute of Planning & Management held at Bangalore on 25th March 2009

Southern Region of EEPC India awarded BEML with 'Silver Shield'  for Star Performer as a

Large Enterprise for its outstanding contribution to Engineering Export held at Trivandrum

on 11th February 2009

CDM received the RAKSHA MANTRI’S award for excellence for best performance in

export held at new Delhi on 7th November 2008

CDM received the ROTARIAN AWARD of vocational excellence in their district

conference held in Bangalore on 9th February 2008

CDM received the BEST CEO AWARD from Mr.SK Sharma national president, Indian

institute of material management (IIMM) on 30th November 2007 at Chandigarh

Conferred STAR PERFORMER AWARD by engineering export promotion council,

southern region on 24th November 2007

Award for excellence in technology and innovation from confederation of Indian

industries(CII)

Rated AAA by ICRA in January 2007

Received GOLDEN PEACOCK AWARD for innovation management from institute of

directors on 14th January 2007

Ranked 4th best wealth creator among 21 best wealth creators of India and the 1ST AMONG

PSUs(USS 1 in 2002 has appreciated to US$ 62.64 IN 2007)by Dalal street magazine

Conferred MINI RATNA CATEGORY-1 status by ministry of defense, govt. of India during

august2006

Received ENTERPRISE EXCELLENCE AWARD from Indian institute of industrial

engineers during may2006

Received EXCELLENT MOU rating in 2006-2006

AWARD FOR OUTSTANDING PERFORMANCE from engineering exports promotion

council (EEPC)

Award for the largest and most profitable construction world, NICMAR 2007

Awarded UDYOG RATNA AWARD(gold trophy) by institute of economics studies, New

Delhi, during October 2004

Received NIRYAT SHREE GOLD TROPHY from federation of Indian export organization

for its outstanding performance in exports house/Non SSI category for the financial year

2000-01

National award for import substitution for crawler mounted shovels(2 to 2.5 bucket

Cu.M.capacity)

Products of BEML

Mining and construction

RAIL AND METRO

Defence equipments

Analysis And

Interpretation

Of

Data

CHAPTER IV

ANALYSIS AND INTERPRETATION OF DATA

This study was conducted to analyze the performance appraisal system in BEML LTD

Bangalore complex. The data has been collected from 50 employees at BEML LTD, through

questionnaire, Personal Interview and observation method. After data had been collected, the

data has been analyzed in a master tabular form. The analysis of data requires a number of

closely related operations such as establishment of categories, the application of these categories

to raw data through tabulation and drawing statically inferences. From the master table various

summery tables were prepared. The data thus collected is tabulated and interpreted. After

analyzing the data, the findings are presented in the form of Bar charts and . The findings have

been presented along with the respective tabular column, graphs and interpretation

Age group of the respondents

SL NO Age group No of respondents Percentage

1 22-31 years

2 4

2 32-41 years 6

12

3 42-51 years 21 42

4 More then 51 years 21 42

TOTAL 50 100

Analysis

Respondents are of different age group. employees of agree group 50 and above are 42

percent,42 percent belong o 42 to 51 years while those who belong to percent 6.while 2 percent

belong to the age group from 22 to 31years

Age group of the respondents

22-31 YEARS 32-41 YEARS 42-51 YEARS More then 51 years

0

5

10

15

20

25

30

35

40

45

No.of respondentsPercentage

Interpretation

It is found that the majority of the respondents were in the age group of 42 to 51 years and

above. This clearly reveals that respondents are seniors and experienced in the organization

Performance Appraisal system is needed in the organization.

Table no-1

Sl no Particulars No of respondents percentage

1Strongly agree 15 30

2 Agree 33 66

3 Cannot say 02 04

4 Disagree - -

5 Strongly disagree - -

Total 50 100

Analysis

It is observed that 66 percent of the respondents agree that performance appraisal system is

needed in the organization followed by 30 percentage who strongly agree for the same. None of

the respondents disagree or strongly disagree.

Performance Appraisal system is needed in the organization.

Chart no-1

30%

66%

4%

No of respondents

Strongly agreeagreeCannot sayDisagree Strongly disagree

Interpretation

It is therefore inferred that a majority of the respondents agree that they need performance

appraisal system in the organization.2 percent of the respondents do not agree with the statement.

Are you aware of Performance Appraisal

Table no-2

Sl no particulars No of respondents percentage

1Strongly agree 05 10

2 Agree 42 84

3 Cannot say 02 04

4 Disagree 01 02

5 Strongly disagree - -

Total 50 100

Analysis

The respondents were asked about the awareness of performance appraisal system in the

organization.84 percentage of the respondents agree that they are aware of performance appraisal

system. None of the respondents strongly disagree for the above statement.

Are you aware of Performance Appraisal

Chart no -2

Strongly agree agree Cannot say Disagree Strongly disagree

0

10

20

30

40

50

60

70

80

90

10

84

4 2 0

Chart Title

No of respondentspercentage

Interpretation:

It is therefore inferred that a majority of the respondents agree that they are aware of the

performance appraisal system in the organization. 2 percent of the respondents do not agree with

the statement.

Satisfied with the existing Performance Appraisal system.

Table no-3

Sl no particulars No of respondents percentage

1Strongly agree 03 06

2 Agree 33 66

3 Cannot say 11 22

4 Disagree 03 06

5 Strongly disagree - -

Total 50 100

Analysis

As per the above data 66 percent of the respondents agree that they are satisfied with the existing

performance appraisal system. None of the respondents strongly disagree.

Satisfied with the existing Performance Appraisal system.

Chart no -3

6%

66%

22%6%

No of respondents

Strongly agreeagreeCannot sayDisagreeStrongly disagree

Interpretation:

Satisfaction level of the employees regarding performance appraisal system is important. When

asked about their satisfaction majority of the respondents agree with the existing performance

appraisal system. 22 percent of the respondents are in dilemma whether to agree or disagree.

The key Performance area is identified related to your job and evaluation is

done based on your Performance.

Table no-4

Sl no particulars No of respondents percentage

1Strongly agree 04 08

2 Agree 38 76

3 Cannot say 05 10

4 Disagree 02 04

5 Strongly disagree 1 2

Total 50 100

Analysis

From the above data it is analyzed that 76 percent agree that the key performance area is

identified related to your job and evaluation is done based on your performance 8 percent of

respondents strongly agree,10 percent were neutral, disagree and strongly disagree 4 percent and

8 percent respectively.

The key Performance area is identified related to your job and evaluation is

done based on your Performance

Chart no -4

76%

10%

4% 2%

agreeCannot sayDisagreeStrongly disagree

Interpretation:

Performance appraisal is based on certain parameters which include discipline; productivity

behavior etc. when asked whether the respondents would like to be appraised based on certain

key performance, majority of the respondents agreed with the statement.

Performance Appraisal system helps you to understand the overall business

goals and plans of the organization.

Table no-5

Sl no Particulars No of respondents Percentage

1Strongly agree 06 12

2 Agree 35 70

3 Cannot say 07 14

4 Disagree 02 04

5 Strongly disagree - -

Total 50 100

Analysis

From the above data we can analysis that the 70 percent of respondents agree that performance

appraisal system helps you to understand the overall business goals and plans of the organization

and 12 percent of the respondents strongly agree, 14 percent were neutral,4 percent disagree.

None of the employee strongly disagreed.

Performance Appraisal system helps you to understand the overall business

goals and plans of the organization.

Chart no -5

No of respondents

Strongly agreeagreeCannot sayDisagreeStrongly disagree

Interpretation:

Does Performance appraisal system helps to understand the business goals – This question was

put forth for the respondents. Nearly 70 percent of the respondents agreed with the statement.

The Appraisal method helps you to identify the factors that

affect your Performance.

Table no-6

Sl no particulars No of respondents percentage

1Strongly agree 05 10

2 Agree 31 62

3 Cannot say 13 26

4 Disagree 01 02

5 Strongly disagree - -

Total 50 100

Analysis

From the above data we can analyze that the 62 percent respondents agree that the appraisal

method helps them to identify the factors that affect their performance.10 percent respondents

strongly agree, 26 percent were neutral,2 percent disagreed. None of the respondents strongly

disagree.

The Appraisal method helps you to identify the factors that

affect your Performance.

Chart no -6

10%

62%

26%2%

No of respondents

Strongly agreeagreeCannot sayDisagreeStrongly disagree

Interpretation:

Method of appraisal is important. The employees would like to know the factors which influence

the performance, 62 percent of the respondents agreed that appraisal method used help identify

the factors which effect the performance.

The Appraisal method makes you clear of what is expected from you regarding your Performance.

Table no-7

Sl no particulars No of respondents percentage

1Strongly agree 05 10

2 Agree 41 82

3 Cannot say 04 08

4 Disagree - -

5 Strongly disagree - -

Total 50 100

Analysis

From the above data we can analyze that 82 percent of respondents agree that the appraisal

method makes them clear of what is expected from them regarding their performance,10 percent

respondents strongly agree,8 percent were neutral. None of the respondents disagree or strongly

disagree.

The Appraisal method makes you clear of what is expected from you

regarding your Performance.

Chart no -7

Strongly agree agree Cannot say Disagree Strongly disagree

0

10

20

30

40

50

60

70

80

90

No of respondentspercentage

Interpretation:

Different approaches are made with regard to appraisal. These approaches need to clear what is

expected from the employees. Nearly 82 percent of the respondents feel that such methods give

an indication what is expected from them.

You and your Appraiser both have clear understanding on the objective of the

Appraisal System.

Table no-8

Sl no particulars No of respondents percentage

1Strongly agree 05 10

2 Agree 36 72

3 Cannot say 09 18

4 Disagree - -

5 Strongly disagree - -

Total 50 100

Analysis

From the above data analyzed that 72 percent of respondents agree that their and there appraiser

both have clear understanding of the objectives of the appraisal system,10 percent of respondents

strongly agree,18 percent were neutral. None of the respondents disagreed or strongly disagreed.

You and your Appraiser both have clear understanding on the objective of the

Appraisal System.

Chart no -8

10%

72%

18%

No of respondents

Strongly agreeagreeCannot sayDisagreeStrongly disagree

Interpretation

A good understanding between the appraise and appraiser is required. A majority of the

respondents says that they have clear understanding about the objective of the appraisal.

Appraiser rates your Performance based on the work output.

Table no-9

Sl no particulars No of respondents percentage

1Strongly agree 05 10

2 Agree 39 78

3 Cannot say 04 08

4 Disagree 02 04

5 Strongly disagree - -

Total 50 100

Analysis

From the above data we can analyze that 78 percent respondents agree that their appraiser rates

their performance based on the work output of the employees,10 percent respondents strongly

agree,8 percent were neutral,2 percent disagreed. None of the respondents strongly disagreed.

Appraiser rates your Performance based on the work output.

Chart no -9

10%

78%

8%4%

No of respondents

Strongly agreeagreeCannot sayDisagreeStrongly disagree

Interpretation:

Among different parameters for appraisal work output is one important factor. 78percent of the

respondents agree that their appraiser rates their performance based on their work output.

The Appraisal system helps in open communication between you and your

Appraiser through Performance review discussion.

Table no-10

Sl no particulars No of respondents percentage

1Strongly agree 07 14

2 Agree 38 76

3 Cannot say 04 08

4 Disagree 01 02

5 Strongly disagree - -

Total 50 100

Analysis

From the above data it is analyzed that 76 percent of respondents agree that the appraisal system

helps in open communication between them and their appraiser through performance review

discussion, 14 percent of respondents strongly agree, 8 percent were neutral,2 percent disagreed.

None of the respondents strongly disagreed.

The Appraisal system helps in open communication between you and your

Appraiser through Performance review discussion.

Chart no -10

14%

76%

8% 2%

No of respondents

Strongly agreeagreeCannot sayDisagreeStrongly disagree

Interpretation

Communication between appraiser and appraise is important. A majority of the respondents agree that the appraiser system helps in open communication

The Performance Appraisal is by self ( ) superior.( )

Table no-11

Sl no Particulars No of respondents Percentage

1 Superior 35 70

2 Self 15 30

Total 50 100

Analysis

From the above data we analyze that 70 percent of the respondents agree that the performance

appraisal is done by the superior and rest 30 percent of respondents say that they self appraise

their performance

The Performance Appraisal is by self ( ) superior.( )

Chart no -11

70%

30%

No of respondents

superiorself

Interpretation:

70 percent of the respondents say performance is done by the supervisor; self appraisal is made

by remaining 30 percent.

The Performance Appraisal helps to build team work.

Table no-12

Sl no Particulars No of respondents Percentage

1Strongly agree 11 22

2 Agree 34 68

3 Cannot say 03 06

4 Disagree 02 04

5 Strongly disagree - -

Total 50 100

Analysis

It is observed that 68 percent of the respondents agree that there performance appraisal helps to

built team work,22 percent strongly agree,6 percent were neutral,4 percent disagreed. None of

them strongly disagreed.

The Performance Appraisal helps to build team work

Chart no -12

22%

68%

6%4%

No of respondents

Strongly agreeagreeCannot sayDisagreeStrongly disagree

Interpretation:

As regard to building team work question was asked connecting team work and performance. A

major portion of the respondents agree performance system helps to build team work.

The Performance Appraisal is helpful in reducing grievance among the

employee.

Table no-13

Sl no Particulars No of respondents Percentage

1Strongly agree 06 12

2 Agree 32 64

3 Cannot say 10 20

4 Disagree 02 04

5 Strongly disagree - -

Total 50 100

Analysis

The respondents were asked that does the performance appraisal help in reducing grievance

among the employee.64 percent respondents agreed,12 percent strongly agreed, 20 percent were

neutral,4 percent disagreed. None of the respondents strongly disagreed.

The Performance Appraisal is helpful in reducing grievance among the

employee.

Chart no -13

12%

64%

20% 4%

No of respondents

Strongly agreeagreeCannot sayDisagreeStrongly disagree

Interpretation:

As high as 64 percent of the respondents feel that performance appraisal system helps in

reducing grievances.

The Performance Appraisal is helpful for improving personnel skills

Table no-14

Sl no particulars No of respondents percentage

1Strongly agree 14 28

2 Agree 32 64

3 Cannot say 02 04

4 Disagree 02 04

5 Strongly disagree - -

Total 50 100

Analysis

From the above data it is analyzed that 64 percent of the respondents agree that the performance

appraisal is helpful for improving personnel skills,28 percent respondents strongly agree,4

percent were neutral, 2 percent disagreed, none of the respondents strongly disagreed.

The Performance Appraisal is helpful for improving personnel skills

Chart no -14

28%

64%

4%4%

No of respondents

Strongly agreeagreeCannot sayDisagreeStrongly disagree

Interpretation:

Skills both personal and technical are required to perform duties in the organization. A majority

of the respondents feel that the appraisal system helpful in improving personal skills.

In your opinion, training is helpful in achieving better Performance.

Table no-15

Sl no particulars No of respondents percentage

1Strongly agree 16 32

2 Agree 24 48

3 Cannot say 09 18

4 Disagree 01 02

5 Strongly disagree - -

Total 50 100

Analysis

From the above data we can analysis that 48 percent of respondents agree that training is helpful

in achieving better performance,32 percent of respondents strongly agree,18 percent were

neutral,2 percent disagreed. None of the respondents strongly disagreed.

In your opinion, training is helpful in achieving better Performance

Chart no -15

Strongly agree agree Cannot say Disagree Strongly disagree

0

5

10

15

20

25

30

35

40

45

50

No of respondentspercentage

Interpretation:

Training is essential to discharge the duties effectively . Due to emerging technologies

employees are asked to take up different duties, in this regard 48percent of the respondents agree

that training is helpful in achieving better performance followed by 32 percent who strongly

agree with this statement.

The Performance rating are done Periodically.

Table no-16

Sl no particulars No of respondents Percentage

1Strongly agree 02 04

2 Agree 36 72

3 Cannot say 09 18

4 Disagree 03 06

5 Strongly disagree - -

Total 50 100

Analysis

From the above table it is absorbed that 72 percent of the respondents agree that the performance

rating is done periodically,4 percent of the respondents strongly agree,18 percent were neutral ,6

percent disagreed. None of the respondents disagreed.

The Performance rating are done periodically

Chart no -16

Strongly agree agree Cannot say Disagree Strongly disagree

0

10

20

30

40

50

60

70

80

No of respondentsPercentage

Interpretation:

Appraisal is done periodically. This differs from organization to organization. In BEML the

performance appraisal system is carried out periodically as opioned by the respondents.

The Performance Appraisal system helps to identify the strength and

weakness of the employee.

Table no-17

Sl no particulars No of respondents percentage

1Strongly agree 05 10

2 Agree 30 60

3 Cannot say 11 22

4 Disagree 04 08

5 Strongly disagree - -

Total 50 100

Analysis

From the above data we can analysis that 60 percent of the respondents agree that the

performance appraisal system helps to identify the strength and weakness of the employee,10

percent respondents strongly agree,22 percent were neutral,8 percent disagreed, none of the

respondents strongly disagreed.

The Performance Appraisal system helps to identify the strength and

weakness of the employee.

Chart no-17

Strongly agree agree

Cannot sayDisagree

Strongly disagree

0

10

20

30

40

50

60

No of respondentspercentage

Interpretation:

60 percent of the respondents agree that performance appraisal system to identify strength and

weakness. 22percent of the respondents are not able to say anything on the count.

The Performance rating is helpful for the management to provide employee

counseling.

Table no-18

Sl no particulars No of respondents percentage

1Strongly agree 05 10

2 Agree 35 70

3 Cannot say 06 12

4 Disagree 04 08

5 Strongly disagree - -

Total 50 100

Analysis

From the above table we can observed that the respondents were asked whether performance

rating is helpful for the management to provide employee counseling.70 percent of the

respondents agreed,10 percent of respondents strongly agreed,12 percent of respondents were

neutral,8 percent of respondents disagreed. None of the respondents strongly disagreed.

The Performance rating is helpful for the management to provide employee

counseling.

Chart no-18

Strongly agree agree Cannot say Disagree Strongly disagree

0

10

20

30

40

50

60

70

No of respondentspercentage

Interpretation

Employee counseling is a process where employee’s difficulties are discussed with the

counselor. In this regard the majority of the respondents feel employee counseling is required

based on the performance rating.

Promotion is purely based on Performance.

Table no-19

Sl no particulars No of respondents percentage

1Strongly agree 05 10

2 Agree 30 60

3 Cannot say 11 22

4 Disagree 04 08

5 Strongly disagree - -

Total 50 100

Analysis

From the above data we can analysis that 60 percent of the respondents agree that the promotion

is the organization is purely based on performance,10 percent of the respondents strongly

agree,22 percent were neutral, 8 percent disagreed. None of the respondents strongly disagreed.

Promotion is purely based on Performance.

Chart no-19

10%

60%

22%

8%

No of respondents

Strongly agreeagreeCannot sayDisagreeStrongly disagree

Interpretation

Recent trend in the organization is pay for performance; similarly promotion is awarded based on

the performance.

In Public sector Company the promotion is based on service seniority but nearly 60 percent other

respondents feel that the promotion should be truly based on performance.

Your superior guide you to improve your Performance.

Table no-20

Sl no particulars No of respondents percentage

1Strongly agree 11 22

2 Agree 27 54

3 Cannot say 08 16

4 Disagree 04 08

5 Strongly disagree - -

Total 50 100

Analysis

The respondents were asked whether their superior guide them to improve their performance,54

percent of the respondents agreed,22 percent strongly agreed,16 percent were neutral,8 percent

disagreed. None of them strongly disagreed.

Your superior guide you to improve your Performance

Chart no-20

22%

54%

16% 8%

No of respondents

Strongly agreeagreeCannot sayDisagreeStrongly disagree

Interpretation

Proper guidance is required to improve the performance, 76 percent of the respondents either

strongly agree or agree, guidance by the supervisor is essential for better performance.

Performance Appraisal helps in achieving the desired target of the

organization.

Table no-21

Sl no Particulars No of respondents percentage

1Strongly agree 12 24

2 Agree 35 70

3 Cannot say 02 04

4 Disagree 01 02

5 Strongly disagree - -

Total 50 100

Analysis

From the above data it is analyzed that 70 percent of respondents agree that performance

appraisal helps in achieving the desired target of the organization,24 percent of respondents

strongly agree,4 percent were neutral,2 percent disagreed. None of the respondents strongly

disagreed.

Performance Appraisal helps in achieving the desired target of the

organization.

Chart no-21

24%

70%

4%2%

No of respondents

Strongly agreeagreeCannot sayDisagreeStrongly disagree

Interpretation

Almost all the organization are striving hard to achieve the desired target. when asked about the

opinion of the respondent regarding the above statement as high as 94 percent agree or strongly

agree with the above statement.

Performance Appraisal increases employee motivation.

Table no-22

Sl no particulars No of respondents Percentage

1Strongly agree 12 24

2 Agree 31 62

3 Cannot say 06 12

4 Disagree 01 02

5 Strongly disagree - -

Total 50 100

Analysis

It is observed from the above table that 62 percent of the respondents agree that the performance

appraisal increases employees motivation,24 percent of respondents strongly agree,12 percent

respondents were neutral, 2 percent disagreed. None of the respondents disagreed.

Performance Appraisal increases employee motivation

Chart no-22

Strongly agree agree Cannot say Disagree Strongly disagree

0

10

20

30

40

50

60

70

No of respondentspercentage

Interpretation

Motivation is a factor it promotes interest of the employees by periodical performance appraisal

employees may increase 86 percent of the respondents are of the opinion that performance

appraisal increases employee motivation.

Superior spends enough time to Performance review discussion.

Table no -23

Sl no particulars No of respondents Percentage

1Strongly agree 04 08

2 Agree 27 54

3 Cannot say 07 14

4 Disagree 11 22

5 Strongly disagree 01 02

Total 50 100

Analysis

From the above data we analyze that 54 percent of the respondents agreed that superiors spend

enough time to performance review discussion,8 percent of respondents strongly agree,14

percent were neutral,22 percent disagreed. 2 percent strongly disagreed.

Superior spends enough time to Performance review discussion.

Chart no-23

8%

54%

14%

22%

2%

No of respondents

Strongly agreeagreeCannot sayDisagreeStrongly disagree

Interpretation

Performance review discussion is carried out in most of the organization, superior who is the

appraiser has to spend some times with the appraise for effective performance appraisal.

Although 62 percent of the respondents either agree or strongly agree, 22 percent disagree. This

clearly indicates that superiors are not spending enough time with the appraise.

The HRD makes use of the Appraisal data for taking corrective decisions in

over all organizational development and individual development.

Table no-24

Sl no particulars No of respondents Percentage

1Strongly agree 04 08

2 Agree 27 54

3 Cannot say 07 14

4 Disagree 11 22

5 Strongly disagree 01 02

Total 50 100

Analysis

From the above table we can analysis that 54 percent of respondents agree that the HRD makes

use of the appraisal data for taking corrective decisions in overall organizational development

and individual development,8 percent of respondents strongly agree,14 percent were neutral, 22

percent disagreed, 2 percent strongly disagreed.

The HRD makes use of the Appraisal data for taking corrective decisions in

over all organizational development and individual development

Chart no-24

8%

54%

14%

22% 2%

No of respondents

Strongly agreeagreeCannot sayDisagreeStrongly disagree

Interpretation

The success of the organization depends on the person one of the factor required after appraisal

the data is used for corrective action in organization development and who individual

development, nearly 62 percent agree with the above statement while 24 percent either disagree

or strongly disagree.

Findings

&

CHAPTER V

FINDINGS

Majority of the respondents are between the age group of 40-50 and above 50 years, from

this we can find out that most of the respondents are experienced.

Out of 50 respondents, majority of them said that performance appraisal system in needed in

the organization.

84 percent of respondents in BEML are aware of performance appraisal

Satisfaction level of the employees regarding performance appraisal system is important.

When asked about their satisfaction majority of the respondents agree that they are satisfied.

based on certain key performance,

Performance appraisal system helps to understand the business goals – This question was put

forth for the respondents. Nearly 70 percent of the respondents agree.

Nearly 82 percent of the respondents feel that the appraisal method makes them clear of what

is expected from them regarding their performance this methods

72 percent of the respondents says that they have clear understanding about the objective of

the appraisal.

78percent of the respondents agree that their appraiser rates their performance based on their

work output.

A majority of the respondents agree that the appraiser system helps in open communication.

70 percent of the respondents say performance is done by the supervisor; self appraisal is

made by remaining 30 percent.

A major portion of the respondents agree performance system helps to build team work.

As high as 64 percent of the respondents feel that performance appraisal system helps in

reducing grievances

A majority of the respondents feel that the appraisal system helpful in improving personal

skills.

Due to emerging technologies employees are asked to take up different duties, in this regard

48 percent of the respondents agree that training is helpful in achieving better performance

followed by 32 percent who strongly agree with this statement.

In BEML 72 percent of respondents agree that the performance appraisal system is carried

out periodically.

Nearly 60 percent of the respondents agree that performance appraisal system to identify

strength and weakness

Employee counseling is a process where employee’s difficulties are discussed with the

counselor with regards to this 70 percent of the respondents agree

In Public sector Company the promotion is based on service seniority but nearly 60 percent

other respondents feel that the promotion should be truly based on performance.

76 percent of the respondents either strongly agree or agree that, guidance by the supervisor

is essential for better performance

Almost 70 percent of the respondents agree in the organization that they are striving hard to

achieve the desired target

Motivation is a factor that promotes interest of the employees by periodical performance

appraisal employees. 86 percent of the respondents agree with it

As most of the respondents disagree that superiors are not spending enough time with the

appraise.

54 percent of the respondents agree that The HRD makes use of the appraisal data for taking

corrective decisions in over all organizational development and individual development

SUGGESTIONS

It is suggested that company can adopt 360 degree appraisal method.

With having 360 degree appraisal in the company the employee’s efficiency and overall

efficiency can be improved.

There should have an option for Peer appraisal in the company.

As many of the employees are in between the age of 40-50 and above younger generations

should be recruited as they are more energetic.

Proper upgradation of performance related activities are to increased every year.

Promotions are usually given on the basis of seniority, it is suggested it should be based on

their performance and ability.

Personality development programmers can be conducted so as to improve the employee’s

performance towards reaching the objectives.

With the proper implementation of appraisal method in the company the employee’s are

initiated to take leadership in company’s activities which intern the soft skills of the

employee’s are developed

Motivational training can provided to uplift the efficiency level of the employee

Proper appraisal method can lead the company towards reaching its goals and objectives and

hence increase in productivity.

A periodical review of supervisory appraisal system can be effected for promotion and

training

Informal counseling can also be applied for any short coming of the appreisee.

CONCLUSION

The fate of the organization depends on the employees. The employees are a great assets of the

organization. One of the way in which effective and efficient persons are selected is through

performance appraisal. Every organization needs to concentrate more on this performance

appraisal. There should be no room for partiality or favoritism as far as performance appraisal is

concerned. The higher authorities must keep an eye on the performance appraisal and make

changes according to the changing circumstances

Performance appraisal is one of the significant tools of the modern personnel management,

which yields high return when it is done in a systematic and just manner, with minimum error.

Many of the function of personnel management like promotion, transfer, demotion, increments,

training and development are performed having performance appraisal as the basic foundation.

Performance appraisal forms as an important application in the area of motivation, good

mechanism superior subordinate relationship and an instrument to direct employees abilities to

overall organizational objectives

In BEML less care and time is given for performance appraisal. The approach to performance

appraisal as a routine affair which has to be shifted to purposive, developmental exercise. Only

then performance appraisal will have greater meaning.

This study helped me to gain practical exposure on my topic that is effectiveness of performance

appraisal of employee’s. which is one of the objectives of the study. The other objectives to get

the opinion of the employees on the variable aspects of the present performance appraisal system

in the company has been met with the kind of co-operation of respectable respondents.

For performances appraisal to be effective, proper motivation through all the possible ways

including training and development is necessary.

Bibliography

BIBLIGRAPHY

1) Books referred

ASWATHAPPA

“Human Resource Management”

5th Edition

Tata McGraw Hill Publishing Company Limited, 2007

APPANNAIAH REDDY,APARNA RAO

“Human Resource Management”

2nd Revised Edition

Himalaya Publishing House, 2007

Dr K.Ramachandra, Dr B.Chandrashekar, S.Shivakumar

“Business Research Methods”

1st Edition

Himalaya Publishing House,2006

P.Subba Roa

“Human Resource Management”

2nd Revised Edition

Himalaya Publishing House,Mumbai

P.Subba Roa

Personal management and HRD

Himalaya Publishing House

Tapomoy Deb

Performance appraisal and management

2) Journals

House journals of BEML Limited

3) Websites

www.beml.com

www.google.com

www.performance appraisal.com

Annexure

Annexure

Questionnaire on performance appraisal

Dear Sir/Madam

Employee information

Please tick whichever is applicable

NAME:

AGE:

22-31 years ( )

32-41 years ( )

42-51 years ( )

More than 51 years( )

GENDER:

Male ( )

Female ( )

1. Performance Appraisal system is needed in the organization.

a. Strongly agree ( ) b. Agree ( ) c. Cannot say ( )

d. Disagree ( ) e. Strongly disagree ( )

2. Are you aware of performance appraisal.

a. Strongly agree ( ) b. Agree ( ) c. Cannot say ( )

d. Disagree ( ) e. Strongly disagree ( )

3. Satisfied with the existing performance appraisal system.

a. Strongly agree ( ) b. Agree ( ) c. Cannot say ( )

d. Disagree ( ) e. Strongly disagree ( )

4. The key Performance area is identified related to your job and evaluation is

done based on your performance.

a. Strongly agree ( ) b. Agree ( ) c. Cannot say ( )

d. Disagree ( ) e. Strongly disagree ( )

5. Performance Appraisal system helps you to understand the overall business

goals and plans of the organization.

a. Strongly agree ( ) b. Agree ( ) c. Cannot say ( )

d. Disagree ( ) e. Strongly disagree ( )

6. The appraisal method helps you to identify the factors that affect your

performance.

a. Strongly agree ( ) b. Agree ( ) c. Cannot say ( )

d. Disagree ( ) e. Strongly disagree ( )

7. The appraisal method makes you clear of what is expected from you regarding

your performance.

a. Strongly agree ( ) b. Agree ( ) c. Cannot say ( )

d. Disagree ( ) e. Strongly disagree ( )

8. You and your appraiser both have clear understanding on the objective of the

appraisal system.

a. Strongly agree ( ) b. Agree ( ) c. Cannot say ( )

d. Disagree ( ) e. Strongly disagree ( )

9. Appraiser rates your performance based on the work output.

a. Strongly agree ( ) b. Agree ( ) c. Cannot say ( )

d. Disagree ( ) e. Strongly disagree ( )

10. The appraisal system helps in open communication between you and your

appraiser through performance review discussion.

a. Strongly agree ( ) b. Agree ( ) c. Cannot say ( )

d. Disagree ( ) e. Strongly disagree ( )

11. The performance appraisal system provides scope for reflection of your

personality factor and attributes requirement for your job performance.

a. Strongly agree ( ) b. Agree ( ) c. Cannot say ( )

d. Disagree ( ) e. Strongly disagree ( )

12. The performance appraisal is by self ( ) superior.( )

a. Strongly agree ( ) b. Agree ( ) c. Cannot say ( )

d. Disagree ( ) e. Strongly disagree ( )

13. The performance appraisal helps to build team work.

a. Strongly agree ( ) b. Agree ( ) c. Cannot say ( )

d. Disagree ( ) e. Strongly disagree ( )

14. The performance appraisal is helpful in reducing grievance among the

employee.

a. Strongly agree ( ) b. Agree ( ) c. Cannot say ( )

d. Disagree ( ) e. Strongly disagree ( )

15. The performance appraisal is helpful for improving personnel skills,.

a. Strongly agree ( ) b. Agree ( ) c. Cannot say ( )

d. Disagree ( ) e. Strongly disagree ( )

16. In your opinion, training is helpful in achieving better performance.

a. Strongly agree ( ) b. Agree ( ) c. Cannot say ( )

d. Disagree ( ) e. Strongly disagree ( )

17. The performance rating are done periodically.

a. Strongly agree ( ) b. Agree ( ) c. Cannot say ( )

d. Disagree ( ) e. Strongly disagree ( )

18. The performance appraisal system helps to identify the strength and weakness

of the employee.

a. Strongly agree ( ) b. Agree ( ) c. Cannot say ( )

d. Disagree ( ) e. Strongly disagree ( )

19. The performance rating is helpful for the management to provide employee

counseling.]

a. Strongly agree ( ) b. Agree ( ) c. Cannot say ( )

d. Disagree ( ) e. Strongly disagree ( )

20. Promotion is purely based on performance .

a. Strongly agree ( ) b. Agree ( ) c. Cannot say ( )

d. Disagree ( ) e. Strongly disagree ( )

21. Your superior guide you to improve your performance.

a. Strongly agree ( ) b. Agree ( ) c. Cannot say ( )

d. Disagree ( ) e. Strongly disagree ( )

22. Performance appraisal helps in achieving the desired target of the organization.

a. Strongly agree ( ) b. Agree ( ) c. Cannot say ( )

d. Disagree ( ) e. Strongly disagree ( )

23 Performance appraisal increases employee motivation.

a. Strongly agree ( ) b. Agree ( ) c. Cannot say ( )

d. Disagree ( ) e. Strongly disagree ( )

24. Superior spend enough time to performance review discussion.

a. Strongly agree ( ) b. Agree ( ) c. Cannot say ( )

d. Disagree ( ) e. Strongly disagree ( )

25. The HRD makes use of the appraisal data for taking corrective decisions in

over all organizational development and individual development.

a. Strongly agree ( ) b. Agree ( ) c. Cannot say ( )

d. Disagree ( ) e. Strongly disagree ( )