Professional Documents
Culture Documents
Project On ECL
Project On ECL
Project On ECL
the equity shares of CIL (631.6 million equity shares) to public for sale at an offer
price of INR 245 per share (at face value of INR 10 per share). [17] The IPO got
over-subscribed by 14.17 times. Against an IPO issue size of INR 155 billion
(USD 3.5 billion) it received bids for INR 2400 billion crores (USD 53 billion)
making it the second highest collections in any IPO in India. [18] On the first day
of its listing on the stock market, its shares soared 40% higher than IPO
1
price. With the listing, CIL become the fourth most valued company on the
Indian stock exchanges with a market value of INR 2.16 trillion. [19]
CIL was included in the 30-member BSE
SENSEX
on 8 August 2011. On 17
August 2011, it became the most valuable company in India, with a market
capitalization of INR 2.51 trillion. On 30 January 2015, in an Offer for Sale
(OFS), Government of India sold a further 10% stake in CIL. Priced at INR 358
per share, the sale fetched the government INR 225.5763 billion, making it the
largest ever equity offering in the Indian share market.
CIL is the largest coal producing company in the world. It produced 494.24 MT
(million tonne) coal during FY 2014-15. Coal India operates through 81 mining
areas in eight states in India. As on 1 April 2015, it has 430 coal mines out of
which 175 are open cast, 227 are underground and 28 are mixed
mines. Production from open cast mines during 2014-15 was 92.91% of total
production of 494.24 MT. Underground mines contributed to 7.09% of
production. CIL further operates 15 coal washeries, out of which 12 are for
coking coal and 3 are for non-coking coal with 23.30 MTY and 13.50 MTY
capacities respectively. It also manages 200 other establishments like
workshops, hospitals etc. Subsidiaries: Coal India produces coal through seven
of its wholly owned subsidiaries. Its another wholly owned subsidiary
CMPDIL carries out the exploration activities for other subsidiaries. CMPDIL
also provides technical and consulting services to it and to third party clients for
coal exploration, mining, processing and related activities. CIL also has a
wholly owned subsidiary in Mozambique, Coal India Africana Limited (CIAL)
for pursuing coal
mining
Revenue
Employees
Subsidiary
INR
(As on
Coking
billion
coal
(FY
(MT)
Noncoking
coal
Total Coal
Production
(MT)
(MT)
31.03.2015)
2012-13)
56,051
89.37
26.970
4.243
31.213
45,011
92.38
16.156
31.905
48.061
68,681
97.40
0.043
33.868
33.911
22,259
120.93
107.894
107.894
16,226
99.86
70.021
70.021
67,800
176.48
0.157
118.062
118.219
50,071
74.23
0.330
41.957
42.287
3,629
6.05
329,728
756.72
43.656
407.950
451.606
2,027
0.605
0.605
474
CIL Headquarters
868
13.78
Total
333,097
770.49
43.656
408.555
452.211
Nationalization of coal industry in India in the early seventies were a fall out of
two related events. In the first instance it was the oil price shock, which led the
country to take up a close scrutiny of its energy options. A Fuel Policy
Committee set up for this purpose identified coal as the primary source of
commercial energy. Secondly, the much needed investment needed for growth
of this sector was not forthcoming with coal mining largely in the hands of
private sector. The objectives of Nationalization as conceived by late Mohan
Kumaramangalam were; Conservation of the scarce coal resource, particularly
coking coal, of the country by
Moreover the coal mining which hitherto was with private a miner suffered with
their lack of interest in scientific methods, unhealthy mining practices etc. The
living conditions of miners under private owners were sub-standard.
CIL's equity shares are listed on Bombay
Stock Exchange
where it is a constituent
of the BSE SENSEX index, Scrip wise Weight ages in S&P BSE SENSEX SE India
31 Aug 2013 and the National
where it is a constituent of
the S&P CNX Nifty. Download List of CNX Nifty stocks (.csv) NSE India 31 Aug
2013
Shareholding: On 30 January 2015, 79.65% of the equity shares of the company
were owned by the Government of India and the remaining 20.35% were owned
4
Shareholding
Government of India
79.65%
9.04%
Domestic Institutions
01.28%
Non-Institutions
2.86%
Total
100.0%
Maharatna Status
Coal India Limited was granted the 'Maharatna' status on 11 April, 2011 by the
Government of India thus becoming only the 5th PSU in the country, of a total of 215
Central Public Sector Enterprises (CPSEs), to have been conferred with this status.
Government of India has introduced the Maharatna scheme in February 2010 for Central
Public Sector Enterprises, in order to empower the mega CPSEs to expand their
operations and emerge as global giants. So far, the select club has only five members. The
objective ofMaharatna is to delegate enhanced powers to the Boards of the identified
large Navratna CPSEs, fulfilling the specified criteria, to facilitate expansion of their
operations both in domestic as well as global markets.
2010-11
Coal India Limited signed a Memorandum of Understanding (MoU)
Ministry of Coal on 31st March, 2011 - for its key performance areas for the fiscal 201112. As per the MoU for the fiscal 2011-12, CIL's targeted production and coal off-take
have been fixed at 452.00 Million Tonnes (MTs) and 454.00 MTs respectively for
attaining an 'Excellent' rating. Incidentally for previous three fiscal years i.e 2007-08,
2008-09 & 2009-10 CIL was rated 'Excellent'.
Under the present MoU for 2011-12 special emphasis on Research & Development,
Corporate Social Responsibility, Sustainable development & Corporate Governance have
been made as major thrust areas. To attain the targeted off-take, CIL has sought 175
rakes/day for 2011-12 as against the average availability of 156.8 rakes/day & 161.9
rakes/day during previous and current fiscal years . Average growth of coal movement
through Rail is only around 2 % during the last 3 years whereas CIL has envisaged a
growth of around 13.5 % through rail for achieving above target.
Since last year (2010-11) expenditure on CIL R&D activities has taken a quantum jump
from 2009-10 level of around Rs 15 Crores annually to Rs.30 crores. CIL has also
stepped up its target for expenditure on CSR activities in line with DPE's guideline.
Coal India Limited bagged a prestigious first ever international award in Geneva on 7
March 2011. CIL was conferred with the "Century International Quality ERA Award
(CQE)" in the Gold Category in recognition of commitment to Quality, Leadership,
Technology and Innovation. It was stated that Coal India represents success for India in
the Business world. The awards were given by Business Initiative Directions (BID) - a
leading
private
organization
focused
on
the
Quality
Mix
Plan.
Owning/chartering of vessels
2.
Draft surveying
3.
Inspection of cargo
4.
5.
Indenting wagons from railways, loading of wagons, quality analysis and delivery of
coal at power stations
7
4th November was CIL share was listed at Rs.291/- and closed over Rs.342/- on the
first day of trading. Most importantly, a national asset was offered to public as 'peoples'
ownership' in PSUs.
21 October 2010, the day CIL's IPO closed, would be etched as a historic event in the
annals of Coal India Limited. The day unraveled the value and the true potential of CIL.
Innumerable road shows involving countless man hours of effort across the country and
in US, Europe markets had resulted in the grand success of CIL's IPO.
CIL's IPO the largest so far in Indian capital market was over-subscribed 15.3 times. The
resounding success of record shattering result of the company's public offer with the
aggregate funds flowing amounted to Rs.2,35,276.55 crores which was so far unheard of
in the Indian capital market. The over-subscription of the issue happened in all the three
major segments i.e. Qualified Institutional Buyers (QIB), High Networth Individuals
(HNI) and retail. The QIB for which there was a reservation to the extent of 50% of the
net issue of the shares, the over-subscription was as much as 24.62 times. Around 784
QIB investors had put in over US dollar 38 billion i.e. Rs.1,71,469.64 crores which by
itself is also an all time high in the history of Indian IPO. In the retail segment nearly
16.36 lakhs applications were received - the highest among all PSU IPOs so far
amounting to Rs.63,639.26 Crores. This is also the highest so far in the Indian capital
market. Interestingly, the foreign investors alone had put in around US $ 27 Billion which
is equal to first ten months of FII investment in India this year.
CRISIL the leading credit rating agency in the country has assigned maximum grading
of 5 to CIL's proposed IPO - the best for any public sector. The grading indicates that
the fundamentals of the IPO are strong compared other listed securities in the country.
2009-10
Standing
of
Public
Enterprises
for
the
year
2007-08.
of
our
Company
into
public
limited
company.
2008-09
Public Enterprises, GoI, for our operational efficiency and financial strength, which
affords
greater
operational
freedom
and
autonomy
in
decision
making.
Overall production of coal by our Company and our Subsidiaries, crossed 400 million
tonnes.
2007-08
GoI, to CCL.
2006-07
GoI,
to
our
Company
and
to
MCL,
NCL,
SECL
and
WCL.
to timely payment of interest and principal, awarded by CRISIL in respect of the Rs.
250
million
Introduction
of
bond
sale
programme
of
coal
of
through
our
Company.
'e-auction
method';
ECL and BCCL reported profit of Rs. 3,638 million and 2,026.67 million in Fiscal
2006.
2003-04
Subsidiaries, such that our Company is to receive only dividends under applicable
policy from our Subsidiaries and the corpus of our Company was to be utilized to
provide strategic support to a loss making entity only for, inter alia, maintaining their
productive capital assets.
Sanction of loan of USD 1.03 billion from the World Bank and the Japanese Bank for
International Co-operation for implementing 24 highly viable open case projects with
global sourcing of equipments, of which USD 484.40 million was availed during the
period between Fiscal 1998 to Fiscal 2004.
1996-97
payment of interest and principal, awarded by CRISIL in respect of the Rs. 4,000
million bond issue by our Company.
Adoption of financial viability as the basis for approval of coal development projects.
Discontinuation of retention prices scheme and the Coal Price Regulation Account
(CPRA), with the deregulation in prices of certain grades of coal.
1995-96
whereby Rs. 8,917 million of interest liability was waived, Rs. 9,041.8 million of plan
loan repayment arrears was converted to preference equity and Rs. 4,326.4 million of
non plan payment arrears were allowed a moratorium for repayment and interest
accrual for a period of three years, to be repaid in three equal installments.
A profit of Rs. 6,116 million in Fiscal 1996 was earned by our Company.
1992-93
Control Order, 1945 by notification dated March 31, 1982, in respect of our
Subsidiaries.
1980-81
washery,
washery,
Barora
washery,
Kedla
washery.
Overall production of coal by our Company and our Subsidiaries crossed 100 million
tonnes.
1979-80
10
1975-76
Incorporation of CMPDIL, ECL and WCL, and formation of BCCL, CCL, CMPDIL,
ECL and WCL, as our Subsidiaries.
1973-74
in
coal
to
meet
the
growing
energy
needs
11
of
the
country.
Awards
Coal India Limited (CIL) was conferred with two Corporate Social
Responsibility Awards on 18 February 2013: 'Global CSR Excellence and
Leadership Award' for Best Corporate Social Responsibility Practices and
'Blue Dart Most Caring Companies of India Award'.
For 2012, CIL earned a ranking of 48 on overall global performance in
the 'Platts Top 250 Global Energy Company Rankings'.
CIL features on the Forbes Global 2000 rankings for 2012 at position
377.Coal India on the Forbes Global 2000 List Forbes 31 May 2013 19
October 2013
In December 2012, it was ranked as the 9th on the Fortune India
500 list.IOC retains top slot in Fortune 500 India list The Hindu 15
December 2012 19 October 2013
CIL was conferred with "Company of the Year Award" in a function
organised by Indian Chamber of Commerce and Department of Public
Enterprises (DPE) in September 2011 at 2nd Summit on 'India Public
Sector Agenda @2020' at New Delhi.
VISION
To emerge as a global player in the primary energy sector committed to provide
energy security to the country by attaining environmentally & socially
sustainable growth through best practices from mine to market.
MISSION
To produce and market the planned quantity of coal and coal products
efficiently and economically in an eco-friendly manner with due regard to
safety, conservation and quality.
12
CORPORATE STRUCTURE
Eastern Coalfields
INTERNAL ASPECTS
13
MIDDLINGS :
Middlings are by-products of the three stage coal washing / beneficiation
process, as a fraction of feed raw coal.
14
REJECTS:
Rejects are the products of coal beneficiation process after separation of cleans
and / or middlings, as a fraction of feed raw coal.
Used for Fluidized Bed Combustion (FBC) Boilers for power generation,
road repairs, briquette (domestic fuel) making, land filling, etc.
TAR
HEAVY
OIL
LIGHT
OIL
SOFT
PITCH
These are products from Dankuni Coal Complex using low temperature
carbonization of non-coking coal in vertical retorts.
15
DELEGATION OF POWER
CIL exercise the power delegated under DPE guidelines to the MOU signing companies and
also powers delegated by the ministry of Coal to Coal India Ltd. from time to time.
Obligation of the Government:
In order to enable CIL to achieve its objectives and the level of performance set in the MOU,
the Government on its part undertakes to: Assist CIL in setting adequate supply of railway wagons.
Assist CIL in acquisition of land and getting clearance for forest land by taking up the
matter with MOEF and the respective state government so that land acquired under
the LA/CBA Act is handed over and the forest clearance given under time bound
programmed.
Assist CIL in arranging and getting necessary approval for internal credit.
Assist CIL in recovery of outstanding coal sale due.
Assist CIL in restructuring of ECL and BCCL in view of report submitted by
consultant.
MONITORING
CIL has to submit a quarterly report of performance for each of the performance indicators.
The quarterly target in respect of indicators is same as reflected in the annual action plan
2001-02 of the Ministry of coal.
The Performance evaluation is based on its annual performance.
16
PERFORMANCE RATING:The performance rating is done in the following way:5% more than the target
- Excellent
- Very Good
- Good
- Fair
- Poor
Chairman CIL
Functional Director
SUBSIDIARY COMPANIES
COMPANY
ECL
BCCL
CCL
WCL
NCL
SECL
MCL
NEC
CMPDI
HEADQUARTERS
Sanctoria
Dhanbad
Ranchi
Nagpur
Singrauli
Bilaspur
Sambhalpur
Meghalaya
Ranchi
17
YEAR OF CORPORATION
1975
1973
1975
1975
1986
1986
1992
1975
1975
HIGHLIGHTS OF CCL
18
Central Coalfield Limited has been on the coal map the country as a public sector on
October, 1956, under different names. In the beginning it was known as National Coal
Development Corporation, then Central Division of Coal mines Authority , and finally under
its present nomenclatures at Ranchi, Jharkhand.
The Central Coalfield Limited is one of the subsidiaries of coal India Limited registered
under the Companys Act 1956 in the year 1975. The mining and extraction of coal is
entrusted to a public sector organization Coal India Limited. The Company is divided into
eight subsidiaries and Central Coalfield Limited is one of them.
The company presently known as CCL has a history of more than three decades. Pursuant to
the Industrial Policy Resolution of 1956, a company was formed by the names of M/S
Hindustan Collieries Private Limited, on 5 September, 1956. The name was changed to the
National Coal Development Corporation. The NCDC was formed on 01.10.1956 with 11
state railway collieries in Orissa and Madhya Pradesh.
Like other industries and organization, the affair of CCL too is not settled by its owner (Govt.
of India). Rather the professional team of management called Board of Directors (BOD) is
appointed by the Govt. of India to manage the affair of CCL.
It consists of chairman cum-Managing Director, four functional Directors in charge of
operations, personnel, finance and projects & planning. Besides part-time Directors as may
be appointed by the Govt. from time to time. At present CCL have 67 collieries and 7
washeries under revenue production. Some of the state collieries are very old, at least one of
which that in Giridih has crossed century in the year 1961. It also has seven coal washeries , a
coal oven plant , besides workshop and handling plants spread over in Hazaribagh , Palamau,
Ranchi, Bokaro , Giridih, and Chatra district.
CCL is the major source of medium coking coal in India. CCLs other important activities are
beneficiation of medium coking coal for steel plants through its chain of coal washeries and
manufacture of soft coke for domestic kitchen. Most of the production (88%) comes from
surface mines. The productivity of underground mines and many of the surface mines is low,
but because of high priced of coking coal, the company has been making marginal profit and
losses with the recent deregulation of coking coal price the profitability of the company is
expected to improve. The command area of CCL companies 10 coalfields namely Giridih,
East Bokaro, West Bokaro, Ramgarh-kaitha, North Karanpura, South Karanpura, Auranga,
19
Hutar, Daltongang and Giridih/ Jayanti. Chairman-cum-Managing Directors is the full time
executive of the company. The collieries and washeries have been grouped into 15 areas each
headed by chief General Manager/General Manager. The coal projects are headed by project
officer
1. BARKASAYAL
2. ARGADA
3. NORTH KARANPUARA
4. RAJHARA
5. PIPARWAR
6. RAJRAPPA
7. KUJU
8. HAZARIBAG
9. BOKARO & KARGALI
10. DHORI
11. KATHARA
12. KATHARA
2. Kedla
3. Sawang
4. Kargali
Non Coking Coal Washeries
Location
1.
Piparwar
2. Gidi
3. kathara
Coal-Type and Constitutes
Vegetable matter subjected to diverse geological processes and pressures give birth to the
sedimentary rock called coal.
Chemically coal is made of carbon, hydrogen, oxygen,nitrogen,and some other
impurities. The main constitutes of coal are:Carboneous
Non Carboneous
Vitarin
Ash
Clarin
Moisture
Volatile matter
Fixed Carbon
21
Coking coal is that variety of coal which has better coking properties and which can be
converted into hard coke suitable for iron and steel industry and metallurgical purpose.
Coking coal is of three types:1. Prime coking coal
2. Medium coking coal
3. Semi coking coal
GRADES OF COAL
Coal is divided into following grades according to uhv (useful heat value)
COKING
NON COKING
St-1steel grades 1
GRADES A (>6200kcal/kg)
St-2steel grades 2
GRADES B (>5600kcal/kg)
GRADES C (>4940kcal/kg)
GRADES D (>4200kcal/kg)
GRADES E (>3360kcal/kg)
GRADES F (>2400kca/kg)
GRADES G (>1300kcal/kg)
VISION
22
To become a World class, innovate, competitive & profitable Coal Mining Operation to
achieve customer satisfaction as top priority, Committed to create eco-friendly mining.
MISSION
The mission of CCL is to produce and market the planned quantity of coal and coal products
efficiently and economically with due regard to safety, conservation and quality.
The main thrust of CCL in the present context is to orient its operations towards market
requirements maintaining at the same time financial viability to meet the resource needs.
Product Profile
Coking
23
Grade
U.H.V. (K Cal/Kg.)
Grade
% Ash
Exceed 6200
W-I
Between 18-21
Between 5600-6200
W-II
Between 21-24
Between 4940-5600
W-III
Between 24-28
Between 4200-4940
W-IV
Between 28-35
Between 3360-4200
Between 2400-3360
Between 1300-2400
In this type of mines there is high risk of accidents due to the fall of roofs and sides. In order
to avoid these accidents thrust is given to provide support of green roof with steel supports
like steel cogs, pit props, roof, Bolts, W-straps, etc
disposal
11. To act as colliery and mines proprietors coke manufacture in all their respective
branches.
The main project objective are to support the market-oriented reform India is undertaking in
the sector and specially to provide financial and technical support of coal Indias effort to
make itself commercially viable and self-sustaining under pinning Indias broad drive to
achieve economic growth.
The project also aim to increase domestic supplies of coal by planning investment in the most
profitable 24 opencast mines of coal India for the power sector and other industries until
imports and production from private investments can fill the merging supply gap.
1. To get implemented the policy and program laid down by the government of
India. CIL
ensures working in accordance with the guidelines and directions issued by them from time to
time.
2. To keep them informed of the program with regard to implementation of their policies and
progress in accordance with the guideline and direction issued by them.
3. To plan and carryout all operations in such a manner that there is no risk of loss, injury or
damage to the health of workman.
4. To adopt techniques and methods working such that loss of coal reserves by ways similar
to other reasons and blockage of reserved in barriers etc. in the east.
5. To draw annual plans for production, preparation and dispatch of coal connect activities
keeping in priority wise demand.
6. To maintain store of equipment, spares and other material to that necessary items are
available in time without unduly blocking capital for propose.
27
7. To draw out inputs of various equipments that is plant and machinery, stores & spares, land
and building etc.
8. To install maintain and operate plant and machinery property so that they are available for
the working to maximum extend and to utilize them in the best possible manner.
9. To keep down cost in all possible ways so as to get maximum profit.
10. To arrange for necessary fund and utilize that in the most advantageous manner.
11.To take care of housing, water supply, recreational, education, medical & other
facilities
for the social security of employees to the extend it is reasonable & practicable.
12. To maintain harmonious industrial relation.
13. To arrange for security of companys properties collective security of employees & their
properties maintenance of law & order in coordination with Government machinery.
14. To construct new project to meet the future need & to ensure timely communication &
completion of jobs.
15. To promote marketing of products and to realize sales proceeds promptly.
16. To carry out studies with the view to asses to normal standard of performance in different
spheres and to develop & implement incentives to increase efficiency.
28
The Chairman cum Managing Director is the whole time chief executive of the company.
The chief vigilance officer is responsible to see that the work is done as per the set rules
producer and guidelines and being the guilty to book secretary to board is responsible for
keeping the meeting agenda.
The board of directors consists of functioned directors and nominees from the state and
central government. The functional Directors are personnel operations etc.
All functional Directors are indirectly related to the areas General Managers. Each area
General Manager is fully responsible for the performance of the area having separate project.
Officer for each project is supposed to achieve the projected target fixed by the company as a
whole. Each project has a colliery manager to individually supervise all types of activities
like transport, production sales realization.
The functional Directors has separate departmental heads namely G.M. sales and marketing,
quality control, finance personnel administration. All have separate work or duties but are
indirectly related to each other.
29
BOARD OF DIRECTORS
Chairman-cum-managing Director
DIRECTORS
Mr. T.K.NAG
Directors (Tech/Oprn.)
Directors (personnel)
Company Secretary
Shri C.V.N. Gangaram
Statutory Auditors
Anand Rungta & Co.
Chartered Accountants
30
DIRECTOR
FINANCE
DIRECTOR
PERSONNEL
DIRECTOR
TECHNICAL
OPERATION
DIRECTOR
TECH. (PROJECT
& PLAN)
Executive Director
VIGILANCE
SECRETARY
(TO CMD)
GM
(FINANCE)
GM
(SYSTEM)
CHIEF OF
INTERNAL
AUDIT
1. CMS
GM OPERATION
2. HOD (L)
GM (Q.C)
3. GM (M/S)
GM (TRANS.)
4. GM HRD
GM (SAFETY)
5. GM (P& IR)
GM (E & M)
6. GM (ADMIN.)
GM (EQUIP. &
HEMM)
7. GM (W & CD)
8. GM (EE)
GM (PROD.)
GM (SALES &
MARKETING)
GM (GEO.
SURVEY)
GM (REVENUE)
GM (MT.MGT)
GM (CIVIL)
GM (CONST.)
9. DY. GM (TA)
10. CHIEF OF
SECURITY
COMPANY
SECRETARIAT
GM (S&IV)
31
GM (CHP)
AREA
(GM)
Year ending
31st March
2004-05
2005-06
2006-07
2007-08
2008-09
01.05.09
Average
Manpower
68871
64200
61610
58808
56553
56383
32
33
PRODUCTION
The table below shows the production and productivity figures achieved by C.C.L during the
year 2006-2007 as compared to the targets for the year and actual of 2005-2006.
Particulars
2006-2007
2007-2008
Target
Actual Target
2008-2009
Actual
Target
Actual
42.31
1.83
44.14
46.75
2.25
49.00
41.68
1.56
43.24
Production
From OC (MT)
From UG (MT)
TOTAL (MT)
39.970
2.630
42.000
39.364
1.955
41.895
42
2
44
(OC- Open Cast Mining, UG- Under Ground mining, MT- Million Tones)
Graphical presentation of comparison of last five years production and productivity in
C.C.L.
YEARS
(y-axis shows production in million tones and X-axis shows years)
UG-UNDERGROUND COAL MINING PRODUCTION
OC-OPEN CAST COAL MINING PRODUCTION
34
INTRODUCTION
A code of ethics
Although human resource has recently gained recognition as a profession compared to more
established professions. The management of companys people (human resource) has been a
recognized, time-honoured function of every organization.
Human resource management incorporates a number of interrelated job functions and work
processes, whose primary goal is to acquire and retain qualified, valued employees as a
source of competitive advantage for an organization. Typical HR functions include:
Job design
Improving jobs through technological and human consideration in order to enhance
organization efficiency and employee satisfaction.
Performance Management
Designing and developing programs and tools which help managers and employees establish
performance standards, identify ways to improve performance asses and document work
performance.
the corporations are generalist strategy, personnel strategy, e-HR strategy, performance
culture etc. The strategies or the models cited do have their own advantage and disadvantages
.Some of the evaluation parameters worthwhile considering while planning the suitable
strategy: Priority and focus, likely impact, size, structure and organization appropriateness,
benefits and risks associated, budget and time constraints, technology usage etc. More than
the new strategic role adopted by the HR fraternity; the contribution of the function has also
seen a radical change in the recent past. The performance assessment methodology and
measures incorporated, introducing HR scorecard and usage of ROI concept in measuring the
performance of this function in terms of financial outputs, have allowed the HR function to
crown the status of Strategic Business Units akin to other functions. As the industry rolls into
the stream of knowledge management concepts defining, sharing and impacting of industry
and role specific vital information, the HR professionals are dealing with knowledge and
empowered associates now a days. This necessitates the HR professional to be competent on
the personal and professional grounds requiring to have sound business knowledge,
proactiveness and innovative. Managing change and diversity have become preponderant in
the HR agenda. The cross- cultural and team becoming more obvious and common, HR often
takes a consulting role within the organization enabling to build an employee oriented culture
and climate. Combating with the acute attrition prevailing admits the knowledge industry, the
HR professional are enforced to think out of the box to taste the success of their retention
strategies. With the onus of creating an employee barding-enabling the corporation to attract
the potential talents, the HR function bolsters the value proposition of the corporation.
Review of literature
Performance appraisal system are home work that provides the information you
need in order to make appropriate administrative recommendations, hold meaningful
feedback discussions with staff members, and determined were performance
improvement is required
By Marion E. Haynes; Managing Performance
One of the measure reason Performance management and Performance Appraisal fail
is that too much time is spent on Appraising performance using vague criteria, and not
enough time and effort put into helping employee understand what his job is about,
and the goals and objectives he/she is expected to achieve to be successful. Learn to
do goals setting painlessly.
By Robert Bacal; Learn to plan Performance and set employee goals
Maximizing and measuring our own performance and that of the people who work for
us is a
basic tenant of the work environment. Always use of simple tool and
Most managers and supervisors today are attempting to quantify their departmental
objective and pass them on their employees through performance standards. Despite
the simplicity of this management- by objective approach, deadlines are missed,
quality is relatively poor and productive is low. The reasons for this may not be the
39
fault of the employees carrying out the work. The cause is most often associated with
the immediate supervisors lack of attention to the realities surrounding objectives and
performance standards require a careful analysis of all the relevant issues.
By Gregory Isaac; Plan for performance
Organizations striving to develop an open and participative approach have begun to
give employees the chance to say what they think of their managers. Such appraisals
can only work in a culture where mangers are willing to listen and learn and effect
any necessary changes as a result.
By Madhukar Shukla; Upward Appraisal and Organizational culture
At one stage performance appraisal relied mainly on personality characteristics. Sub
ordinates were being appraised by their superior on the extent to which they exhibited
characteristic like, tact, willingness, enthusiasm, and maturity. Mangers were being
put into position of psychologists and required to make subjective ratings without any
point of reference expect their own opinion
By Bob Nelson; Performance Assessment
Most advocates of total quality believe that total quality management (TQM) and
performance appraisal is incompatible. For them company managers can choose to
promote either of these two approaches but not both. Since fundamental TQM
requirements contradict the basic elements of performance appraisal, it would be
40
In recent year there has been a shift away from the traditional employee rating system,
which places emphasis on the use of such rating for administrative actions to service
ratings, which serves as a basis for counseling in employee regarding the
improvement of their performance of the job. For example, many personnel authority
believe that disciplinary matters should be created in terms of specific causes rather
than in terms of general service-ratings programme the new look in employee ratings
emphasize the use of performance evaluation and opportunity for the supervisor to
give the employee a better understanding of the job and what is expected of the
employee the new look like wise provide the opportunity for the employee to give
input into the scope and sequences of the task performed.
By, Krishna Raghvan; the Mantra of employee rating system
The history of performance appraisal is quite brief. Its root in the 20 th century can be traced to
Taylors pioneering Time and Motion studies. But this is not very helpful, for the same may
be said about almost everything in the field of modern human resource management.
As a distinct and formal management procedure used in the evaluation of work performance,
appraisal really dates from the of the second world war-not more than 60 years ago.
Yet in a broader sense, the practice of appraisal is a very ancient art. In the scale of things
historical, it might well lay claim to being the worlds second oldest professional!
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There is, says Dulewicz (1989), a basic human tendency to make judgment about those
one is working with, as well as about oneself.Appraisal, it seems, is both inevitable and
universal. In the absence of a carefully structured of appraisal, people will tend to judge the
work performance of others, including subordinates, naturally and informally, arbitrarily.
The human inclination to judge can create serious motivational, ethical and legal problems in
the place. Without a structured appraisal system, there is little chance of ensuring that the
judgment made will be lawful, fair, defensible and accurate.
Performance appraisal systems began as simple methods of income justification. This
is,appraisal was used to decide whether or not the salary or wage of an individual employee
was justified.
The process was firmly linked to material outcomes. If an employees performance was found
to be less than ideal, a cut in pay would follow. On the other hand, if their performance was
better than the supervisor expected, a pay rise was in order.
Little consideration, if any, was given to the developmental possibilities of appraisal. It was
felt that a cut in pay, or a rise, should provide the only required impetus for an employee to
either improve or continue perform well.
Sometimes this basic system succeeded in getting the results that were intended; but more
often than not, it failed.
For example, early motivational researchers were aware that different people with roughly
equal work abilities could be paid the same amount of money and yet have quite different
levels of motivation and performance.
These observations were confirmed in empirical studies. Pay rates were important, yes; but
they were not the only element had an impact on employee performance. It was found that
other issue, such as morale and self esteem, could also have a major influence
As a result, the traditional emphasis on reward outcomes was progressively rejected. In the
1950s in the United States, potential usefulness of appraisal as tool for motivation and
development was gradually recognized.
The general model of performance appraisal, as it is known today, began from that time.
In todays competitive world, various organization and companies are struggling for
maximum consumer satisfaction and economic benefit. The degree of success that all
42
Data relating to performance assessment of employees are recorded, stored, and use for
several purposes. The main purposes of employees assessment are:
1. To effect promotion based on competence and performance.
2. To confirm the services of probationary employees upon their completing the
probationary period satisfactorily.
3. To assess the training and development needs of employees.
4. To decide upon a pay raise where (as in the unorganized sector) regular pay scale
has been fixed.
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5. To let the employees know where they stand in so far as their performance is
concerned and to assist them with constructive criticism and guidance for the
purpose of their development.
6. To improve communication. Performance Appraisal provides a format for
dialogue between the superior and the subordinate, and improves understanding of
personal goals and concerns. This can also have the effect of increasing the trust
between the rater and the ratee.
7. Finally, Performance Appraisal can be used to determined whether HR
programmes such as selection, training ,and transfers have been effective or not.
Broadly, performance Appraisal serves four objectives
I.
II.
Developmental uses,
Administrative uses/decision
III.
IV.
Documentation purposes.
General Application
Specific Purpose
Developmental uses
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Salary
Promotion
Retention of termination
Recognition of individual
Performance
Lay-offs
Identification of poor Performers
HR Planning
Determining organization
Training needs
Evaluation of organizational
goal Achievement
Information of goal identification
Evaulation of HR systems
Reinforcement of organizational
Development needs.
Documentation
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The process of appraisal begins with the establishment of performance standards. These
performance standards should be clear and objective enough to be understood and measured.
The next step is to communicate these standards to the employees. To make the
communication effective, feedback is necessary from the subordinate to the manager.
The third steps in the appraisal process are the measurement of performance. This step is
concerned with the decision on appraisal method and implementation of the system selected.
The fourth steps in the comparison of actual performance with standards.
At the next step, the results of appraisal are discussed periodically with the employees, where
strength, weakness and difficulties are discussed so that performance can be improved.
The final step is the initiation of corrective action whenever necessary.
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METHODS OF APPRAISAL
Numerous methods have been devised to measure the quantity and quality of employees job
performance. Broadly all the approaches to appraisal can be classified into:
1 Past oriented methods,
2 Future oriented methods.
Each group has several techniques for appraising employees performance
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METHODS
PAST-ORIENTED
FUTURE ORIENTED
Rating scales
Management by objective
Checklist
Forced choice method
Forced distribution method
360-Degree appraisal
Psychological appraisal
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Assessment centre
Ratings scales
This is the simplest and most popular technique for appraising employee performance. The
typical rating scale system consists of several numerical scales, each representing a jobrelated performance criterion such as dependability, initiative, output, attendance, attitude,
co-operation, and the like. Each scales ranges from excellent to poor. The rater checks the
appropriate performance level on each criterion, then computes the employees total
numerical scores.
Checklist
Under this method, a checklist of statement on the traits of employee and his or her job is
prepared in two columns-viz,a Yes column and a No column. All that the rater (immediate
superior) should do is tick the Yes column if the answer to the statement is positive and in
column Noif the answer is negative. After ticking off against each item, the rater forwards
the list to the HR department where the actual assessment of the employee takes place. The
HR department assigns certain points to each Yes ticked. Depending on the number of Yes
the total score is arrived. When points are allotted to the checklist, the technique becomes a
weighted checklist.
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1. Areas of performance to be evaluated are identified and defined by the people who will use
the scales.
2. The scales are anchored by descriptions of actual job behaviors that, supervisors agree,
represent specific level of performance. The result is a set of rating scales in which both
dimensions and anchors are precisely defined.
3. All dimensions of performance to be evaluated are based on observable behaviors and are
relevant to the job being evaluated since BARS are tailor made for the job.
4. Since the raters who will actually use the scales are actively involved in the development
process, they are more likely to be committed to the final product.
BARS were developed to provide results which subordinates could use to improve
performance. Supervisors would feel comfortable to give feedback to the ratees.
CONFIDNTIAL RECORDS
Confidential records are maintained mostly in government departments, though its application
in
the industry is not ruled out. ITI, for example had followed method for a long time. Called
twelve of these were filled on a four point grade scale (Excellent, Good, Fair, Poor).For
integrity, there were special instructions from the management. Justification was separately
given (outstanding, Very good, Average, Poor), again with justification for rating as
outstanding or poor. Recommendations for promotion were also given. The ACR contained
recommendations and signature of the rater, the head of the department and the CMD.
The system was highly secretive and confidential. Feedback to the assesses was given only in
case of an adverse entry. The ACR was highly subjective. Ratings were easily manipulated
52
because the evolution was linked to promotion. Even ITI has discontinued this system for
these reasons
Essay Method
In the essay method, the rater must describe the employee within a number of broad
categories, such as
1. The raters overall impression of the employees performance,
2. The promotability of the employee,
3. The jobs that the employee is now able to or qualified to performed,
4. The strengths and weakness of the employee, and
5. The training and development assistance required by the employee.
The strength of the essay method depends on the writing skills and analytical ability of the
rater. Although this method may be used independently, it is most frequently found in
combination with others. It is extremely useful in filing information gaps about the employee.
These are a collection of different methods that compare one workers performance with that
the of his/her co-workers. As these appraisals can results in a ranking from best to worst, they
are useful in deciding merit-pay increases, promotions and organizations rewards. The usual
comparative forms used in this kind of evaluation are the ranking method and the paired
comparison method.
RANKING METHOD
In this, the superior ranks his or her subordinates in their merit, starting from the best to the
worst. All that the HR department knows is that A is better than B. The how and why are
not questioned, nor answered. No attempts are made to factionalize what is being appraised
into component elements. This method is subjected to the halo and regency effects, although
rankings by two or more raters can be averaged to help reduce biases.
PAIRED-COMPARISON METHODS
Under these methods, the appraiser compares each with every other employee, one at a time.
For example, there are five employees named A, B, C, D, and E. The performance of A is first
compared with the performance of B and a decision is made about whose performance is
better. Then A is compared with C, D and E in that order.
The same procedure is repeated for other employees. The number of comparisons may be
calculated with the help of this formula:
N (N-1)*1/2 where N stands for the number of employee to be compared.
After the
completion of comparison, the results can be tabulated, and a rank is created from the number
of times each persons is considered to be superior.
2. FUTURE-ORIENTED APPRAISALS
It is enough if only the past performance is assessed. How an employee can perform in the
days to come is equally important. This can be assessed by focusing on employee potential or
setting future performance goals. The commonly used future-oriented techniques are:
54
MBO has been criticized also. One comment made against the approach is that it is not
applicable to all jobs in all organizations. Jobs with little or no flexibility, such as assemblyline work, are not compatible with MBO. An assembly line worker usually has so little job
55
flexibility that the performance standards and objectives are already determined. The MBO
process seems to be most useful with managerial personnel and employee who have a fairly
wide range of flexibility and self control in their jobs. Besides when the results of an MBO
system are to be used to all to allocate organizational rewards, employees may be less to less
likely to establish challenging goals. They are confident that they can accomplish. Further,
the allocation of merit pay on a semi-annual or annual basis may encourage the setting up of
goals with short tune horizons to the disadvantage of important long term goals.
PSYCHOLOGICAL APPRAISALS
Large organizations employ full-time industrial psychologist. When psychologists are used
for evaluations, they assess an individuals future potential and not past performance. The
appraisals normally consist of in-depth interviews, psychological test, discussion with
supervisors and a review of other evaluations. The psychologist then writes an evaluation of
the employees intellectual, emotional motivations and other related characteristics that
suggest individual potential and may predict future performance. The evolution by the
psychologist mat be for a specific job opening for which the persons for which the persons is
being considered, or it may be a global assessment of his or her future potentials. From these
evaluations, placement and development decisions may be made to shape the persons career
ASSESSMENT CENTERS
An assessment centre is a central location where managers may come together to have their
participation in job related exercises evaluated by trained observers. The principle idea is to
evaluate managers over a period of time, say one to three days, by observing (and later
evaluating) their behaviors across a series of select exercises or work samples. Assesses are
requested to participate in in-basket exercises, work groups (without leaders),computer
simulations, role playing, and other similar activities which require the same attributes for
successful performance, as in the actual job. After recording their observations of rate
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behaviors, the raters meet for the discussion of observations. Self-appraisal and peer
evaluation are thrown in for final rating.
The characteristics assessed in a typical assessment centre include assertiveness, persuasive
ability, communicating ability, planning & organization ability, self confidence, and
rsistance to stress, energy level, decision-making, sensitivity to the feelings of others,
administrative ability, creativity and mental alertness.
First developed in the US and the UK in 1943, the assessment centre is gaining popularity in
our country. Crompton Greaves, Eicher, HLL, Modi Xerox are using the technique with
results being highly positive.
The problem with the assessment centre is their cost. Not only are the assesses away from
their jobs while the company pays for their travel and loading, but the evaluators are often
company managers who are assigned to the assessment centre for short durations. These
managers are often supplemented by psychologists and HR specialists who run the center and
also make evaluations. Hence this approach is cost-effective only in large organizations.
Assessment-center staffs are often influenced by subjective elements, such as personality of
the candidates. Raters tend to evaluate the quality of the individuals social skill rather than
the quality of the decisions he/she makes. Assessment center ratings seem to be strongly
influenced by the participants interpersonal skills.
The approach also involves real hazards. One of the most obvious is the examination-taking
syndrome. Solid performers in day to day operations feel suffocated in the simulated
environment. Another drawback is its potential adverse effect on those not selected to
participate in the exercise.
Employee who receives a poor report from the center may react in negative ways. A rejected
employee would return to his or her former job, satisfied that he or she would not be
promoted to a job he/she couldnt handle. However, a good performer at one level may leave
the organization
in order to remove the bad assessment report from his or her work record. Thus, a poor report
can demoralize an employee who was once an asset.
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But a well-conducted assessment center can and does achieve better forecast of fortune
performance and progress than other methods of appraisal. Also, reability, content validity,
and predictive validity are said to be high in the assessment centers.
The test also makes sure that the wrong people are not hired or promoted. Finally, the
assessment-center test clearly defines the criteria for selection and promotion.
360-Degree Feedback
Where multiple raters are involved in evaluating performance, the technique is called 360degree appraisal. The 360-degree technique is understood as systematic collection of
performance data on an individual or group, derived from a number of stakeholders-the stake
being the immediate supervisors, team members, customers, peers and self. If fact, any one
who has useful information on how an employee does the job may be one of the appraisers.
The 360-degree appraisal provides a broader perspective about an employees performance.
In addition, the technique facilities greater self development of the employee. For ones
development, multi-source feedback is highly useful. It enables an employee to compare his
or her perception about self with perceptions of others. Besides, the360-degree appraisal
provides formalized communication links between an employee and his or her customer. It
makes the employee feel much more accountable to his or her internal or external customers.
The techniques are particularly helpful in assessing softs skills possessed by employees. By
design, the 360 degree appraisal is effective in identifying and measuring interpersonal skills,
customers satisfaction, and team-building skills.
However, there are drawbacks associated with the 360-degree feedback. Receiving feedback
on performance from multiple sources can be intimidating. It is essential that the organization
create a non-threatening environment by emphasizing the positive impact of the technique on
an
employees performance & development. Further, firms that use the technique take a long
time on selecting and the rater, designing questionnaires and analyzing the data. In addition,
multiple raters are less adept at providing a balanced and objective feedback than the
supervisors who are sought to be replaced. Raters can have enormous problems separating
honest observation from personal from personal differences and biases.
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Pitfalls notwithstanding, more and more number of firms are using the 360-degree appraisal
technique to assess the performance of their employees.
APPRAISALS ERRORS
The ideal approach to performance appraisal is that in which the evaluator is free from
personal biases and prejudices. But there are many significant factors which deter or
objective of the evaluation.
1. Leniency Error:every evaluator has his own value system which acts as a standard against which he
makes his appraisals. Relative to the true or actual performance an individual exhibit
.This is the tendency of awarding higher marks than what is really due. This depends on
variation of value system or standard between different raters.
1. Halo Effect:sometimes an employee can create a certain impression on the rater because of some
incidents or behavior. This could be either positive or negative. For example, an
employee might have been selected as a champion in athletics meet. This good
impression has a tendency to influence the rater to provide higher marks on all factors
being evaluated. Similarly a person who is shabbily dressed for an interview give a
bad impression on the rater which carry negative feedback, while he is being
appraised, giving a chance of putting less marks on all points in the appraisal card.
2. Similarity Error:This is the situation in which apprisee possesses a certain similarity or identity with
the rater himself. It could be identity in ideology, personality, cast, creed or language
etc.
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3. Central Tendency:Appraisers have a tendency to play safe. This results in ratings all employees above
average
excellent and 10 percent very poor. One cannot ignore this aspect.
4. Reward Effect:Some time rating can effect promotion or some such reward to which the employee is
a candidate. The tendency of ratter is to award some extra marks in such occasions.
5. Recent Incident Effects:Normally the annual appraisals are made some time in the month of December every
year. This is the error in which the rater is biased because of certain incidents which
occurred during a period just prior to the date of appraisal. If such an incident has
created a good impression on the rater, it leads to award of higher marks than
deserved and vice-versa.
6. Raters Error:If the rater is only one , all the above errors will have little effect in rankings since
errors are equally effected to all the employees even though individual marks vary
from realistic analysis . The problem becomes acute when raters are many. We have
different type of raters, very strict or very relaxed. The strict raters put lesser marks
whereas the relaxed raters give very high marks. Thus, the employees who are
marked/appraised by strict rater suffer because the annual confidential reports
contains the rater marks of appraisal, which form the basis of further promotion or
lucrative assignment or choice transfer etc. The personality of rater is another factor
for such errors. For example the marks allotted will be generally on the lower side by
a rater who believes in Theory of X compared to another rater who believes in
Theory of Y.
60
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Main objective for the study of Performance Appraisal in CCL are as follows:1. To study in detail the actual working of a modern Performance Appraisal System.
2. To know the method of Appraisal in CCL, and its effectiveness on the workers and to
find out how much the system is effective in reaching its target.
3. To interact at different level of the organization to formulate an overall opinion
regarding the Performance Appraisal System.
4. To know the level of satisfaction, then reaction against the system, scope of
introducing new and most modern technique of Appraisal.
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METHODOLOGY
Performance appraisal practice in any sector becomes effective only when the outcome of the
deliverable meets business requirements. This gets reflected in the matching of human
business requirements that embark upon after having effective and robust appraisal process
which focuses on competence need identification. With this in mind a survey was conducted
by the researcher to see whether the objective laid down by the organization regarding
performance appraisal was obtained or not
The questionnaires were distributed among the executive and non-executive staff and were to
be filled by them. The researcher met some of the employee personally and interviewed them.
The questionnaire was collected later on further analysis.
The task of data collection begins after a research problem has been defined and research
design/ plan chalked out. While deciding about the method of data collection to be used for
the study, the researcher should keep in mind two types viz; primary and secondary.
1. Questionnaire
2. personal Interview
1. Questionnaire:
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Questionnaires were distributed among the eligible participants and were to be filled by
them .The researcher explained the questions to the participants who were unable to get the
implication of the given question and helped in filling up the questionnaire. The
questionnaires were collected later for further analysis.
2. Personal Interview: While conducting the survey the researcher went to every department
and interviewed non-executive staffs. For getting a full picture of performance appraisal
system prevailing at CCL and its pitfalls, it was necessary or needs of the time to conduct an
interview of employees at different levels.
Secondary data collection:Researcher used data that were published in these forms:1. Technical and Trade journals
2. Books, Magazines and News papers
3. Reports and Publications of various associations connected with business and industry.
SIZE OF SAMPLE
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The sample of study for employees 10% of the universe i.e non-executive (which was1300)
of different department which were randomly selected by the researcher.
UNIVERSE
The universe for researcher for constituted of all non executives working in various
department at C.C.L Darbhanga House, Ranchi (Head Quarter).
While doing the project the researcher faced many difficulties as a result of which the number
of responses received were less than expected number.
1. Some participants were reluctant to fill up the questionnaire with the excuse that they were
not allowed to share such information related to their Performance Appraisal.
2. Some of the staffs were not at all willing to corporate due to which the researcher had
taken best effort to persuade then to come on but result was not satisfactorily.
65
2nd: Executive who functionally or directly oversees the activities of the Appraise.
3rd: Any other who functionally or directly oversees the activities of the Appraise.
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Reviewer: A very senior officer (Functional Head of the organization) who gives final
grading on the PAR
The whole process of performance evaluation involves the following steps.
FIXING OF TAAD
SELF APPRAISAL BY
THE EMPLOYEE
ASSESSMENT OF
RATING THE
EMPLOYEES
REVIEW OF THE
GRADING BY THE 1st
LEVEL REVIEW
OFFICER
REVIEW OF THE
GRADING BY THE 2nd
LEVEL REVIEW OFFICER
FINALIZATION OF THE
GRADING BY THE
FUNCTIONAL HEAD OF
THE ORGANISATION
B: Very Good
C: Good
D: Average
E: Below Average
Grading for personality and potential traits
G: Good
N: Normal
P: Poor
Developments needs: in respect of training specific recommendation about the topic be
mentioned.
The suggestion for job- rotation be indicated by putting ( ) tick mark columns.
Form
A: Grade E5 to E9 all disciplines working at Headquarters area and other offices
B: E5 to E9 posted at collieries /washeries /Workshop/ subareas and executives in charge of
define area of activities
C: For executives of grade E1 to E4 of all disciplines
D: For directly recruited officers for competitions of probation period, after 12 months
E: For JET / Management Trainee/ LWO for initial training of 12 months or more.
F: For the promoters for assessment of 12 months performance, for completion of probation
period. Interim performance report (IPR) be used for period prior to promotion or period after
the clearance of probation period, till the beginning or end of the appraisal year.
organizational demands.
The system also would help locating executives with different potential strength who could
meet the organizational needs of higher production through induction of new technology and
at lower costs. We could call such executives as high flyers who has to be encouraged to
continue to perform even better in the future.
On the basis of feedback received about feasibility or executives performance appraisal
system designed during 1987, further modification and structuring was done named as CIL
Executives Evaluation Report(Task Assignment & Document) came out during 1993-1993
and since then it is operative accordingly.
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Industrial Relation
Quantity
Welfare
Development
Asset Management
Cost
etc.
3.) As the planning in terms of the frame for the jobs is necessary for achieving the target, the
Appraise should discuss the 4 program of task with the Appraisee and finalize it. This would
be supporting documents for monitoring the progress for every four months. The Reporting
Officer will discuss the assigned task etc. with the Appraisee before the beginning of every
four months and record in this documents
4.) With the completion of the Assessment year the appraisee will be supplied with the EER
from duly numbered by the Executives Establishment Department directly, by the end of
January, so that format should be available with the appraise latest by 28 th February. Self
Appraisal in the printed format duly filled is must be handed over to the reporting officer by
30th April.
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5.1) the reporting officer will complete his evaluation and send it to the first level reviewer by
15th may.
5.2) If the reviewing officer (both Staff and Line) differs with the assessment of the Reporting
Officer, he should give reasons for final grading with the final comment. The first reviewer
will complete the evaluation and same to the Second level review officer (both Staff and
Line) by 15th June.
5.3)The second level reviewing officer (both Staff and Line)y will evaluate the performance
by 30th June giving reasons, if any, for disagreeing with the first level Review Officer.
5.4) Subsequent to the above, the EER shall be sent to the functional head of the company for
his review, and within 15days thereafter to the Executive Establishment Department for
record, the reporting officer shall not initiate the EER unless the appraisee has worked at least
for a period of 4 (four) months under him in the relevant assessment.
5.5)In case there is a difference of opinion between the first level review officer and the
second level Review Officer, the EER shall be sent to the 3rd Level Review Officer.
6) The following approach has been considered for the overall assessment.
6.1)For officer of the rank of E-6 and below, the performance evaluation with reference to the
task performed as mentioned in TAAD shall carry 60 marks as against 40 marks for the
personality Traits, Leadership and other criteria.
6.2)In the case of officers of E-7 rank and above levels, since Managerial skills, Union
Management, Decision Making, judgment etc. are considered equally important , 50 marks
have been assigned for personal Traits and remaining 50 marks for performance.
6.3) while reviewing the EER, the Reporting Officer shall take into consideration
performance as well as the constraints and arrive at his final Marking/Rating.
7.) It is the intention of the company to identify the High performance with a view to develop
their potential and utilize them in the overall interest of the company. As such, the format
proposed has taken into consideration the grading under four categories as follows:
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Excellent: 85-100
Adequate: 41-59
Commendable: 60-84
Inadequate: 40 and
(Note: it is expected that the First Level Review Officer will discuss with the Appraise and
Reporting Officer in all cases where the grading of the officer is either INADEQUATE or
EXCELLENT. All such cases of the Executives whose ranking has been EXCELLENT or
INADEQUQTE shall also go to the third level reviewing authority.)
8) The grading of ADEQUATE and INADEQUATE shall be communicated to the Executive
immediately after receipt of his report from the Executive Establishment Department.
9. (a)The EER of Executive whose ranking have been INADEQUATE shall be considered by
a committee of Director(Personnel), Director (Tech) and the Functional head to check, if any
moderation is required and to arrive at the action to be taken by the company, for the
development of these Executive.
b) The EER of Executive whose ranking has been Excellent shall considered by a Committee
of Directors (Pers.), Directors (Tech.) and the Functional Head to check, if any moderation is
required and to arrive at such steps that may be necessary for further development of the
executives.
10. Similarly in the case of EERs maintained at the level of CIL Hqrs, the review on similar
line shall be undertaken by a committee consisting of Directors (P&IR), Directors (Tech), and
the functional Head.
11. Personnel Department of coal India Ltd. Will send appropriate instructions with regard to
the details as to initiation of EER and review of EER etc.
Note : (1) In keeping with objective of this EER,as stated in Para 1 above, the assessment by
the reporting officer and the Reviewing officer shall be done for the grooming and betterment
of the executive.
The
entries/observation
are
required
to
be
constructive
,as
the
case
of
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Similarly, it is expected that the executives will approach and handle his/her self assessment
objectively and with a befitting maturity.
2. Review/counseling card is to be prepared for every four month period in duplicate and to
be signed by both Appraise and the Reporting Officer. The duplicate (perforated) copy of
each Review card to be handed over to the Appraisee.
3. Format D TRAINING AND DEVELOPMENT NEEDS to be prepared in triplicate one
to remain with EER and two copies to be sent to the Functional Head at Corporate Head
Office. The functional head after recording his recommendation shall send one copy to GM
(HRD) for arranging training.
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Special Achievements: Mention may be made about the earnestness with results were
achieved, for example these could be listed.
-preparation of operation manual
-Absorption of new technology
-Substantial increase in equipment utilization
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-Staff deployment/retraining
-Designing new information system
-Substantial equipment re-habilitation
- Improvement in quality of coal and sales realization
Special Interest:
Mention may be made of the Appraisers professional interest which may be even not related
to the job entrusted to him. These could be in respect of writing, reading, cultural activities,
sports etc.
: In the matter of social managerial dimension has to be made about the
contribution of the executives in developing the social organization in the company including
contribution to activities outside the company. The Appraiser has to make his observation by
indicating G (Good) ,N(Normal),and P(poor).
Special Instructions
In respect of Development needs of an executives reference be made about areas of training
which would help the executives to grow further in his career, and these may be indicated in
terms of topics in respect of managerial skills and technical skills. Job rotation of the
executives as a means of his further development and career growth is indicated.
General instructions
In all case where the grading are Outstanding, Very good, and E (below average), the
Appraise must mention specifically the event to support his views in the column provide for
criteria incidents; otherwise it will be considered subjective.
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Mere achievements of targets or marginal raise over it do not signify outstanding /very good
performance. Remarks like hard working and honest also do not merit a grade of very
good or outstanding.
FORM 1V
(Annual Appraisal Form for all Non-executive Employees Borne in
NCWA Scale of Pay)
Office of the
..
Report for year
ending...
(Strike out column not applicable)
1. Name of Employee
2. Date of Birth
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3. (a)Designation
(b) Grade
(c)Nature of Duties
4. Educational Qualification
5. Date of joining the Deptt
6. Preceding Deptt/Section of Posting
7. Period for which the employee has worked
Under the Reporting Officer in the year
ASSESSMENT BY THE REPORTING OFFICER
8. Professional/technical general
Very Good
Good
Poor
Yes
No
yes
No
Punctual
Very Good
Good
Poor
Very Good
Good
Poor
Very Good
Good
Poor
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Irregular
Very Good
Good
Poor
Fellow employee
19. Was any disciplinary action initiated
against him during the period under
report and if so, the result thereof?
20. Loyalty and honesty
21. Does his health interfere with his work?
22. Fitness for confirmation/promotion
23. General Remarks, if any
24. Overall Grading
Outstanding
Poor
Signature of Reporting
Officer
Dated
Designation
REMARKS OF REVIEWING AUTHORITY
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Outstanding
Very Good
Good
Poor
Rating Poor will only be considered as Adverse Entry. In case the employee who has been
rated Poor or in case of any Adverse Entry in the above report, the employee should be
shown this report and in the token there of his signature be obtained.
Signature of the
Employee
INFERENCE
Question No. 1
Out of the respondent so interviewed indicates that 83% of the persons are aware of the
method of performance appraisal system applicable to them where as 3% of respondents are
not aware of the method of Performance Appraisal and14 % have expressed their ignorance
to the Performance Appraisal system prevailing in the company.
On the whole it indicates that people are aware of the Performance Appraisal system
applicable to the company.
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14%
3%
a. Yes
b. No
c. Do not know
83%
Question No. 2
Out of the respondent so interviewed indicates that 100 % of persons are agreed to the need
of Performance Appraisal system in which 67 % are agreed and 33 % are strongly agreed.
So it can be concluded that majority of the people agree that there is a need of Performance
Appraisal system in the organization.
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33%
a. Strongly Agree
b. Agree
c. Disagree
d. Strongly Disagree
67%
Question No. 3
Out of the respondents so interviewed indicates that only 5% of people are rated the
performance rating system prevailing in the company to excellent and 17% of the
respondents are rated to the prevailing system to very good where as 61% of people rated it
good and 17 % considered it average.
So we can conclude that majority of the people are satisfied with the existing system of
Performance Appraisal in the company.
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6%
17%
17%
a. Excellent
b. Very Good
c. Good
d. Average
61%
Question No. 4
Out of the respondents so interviewed indicates that 91% of the people agree that there is influence of
Performance Appraisal system over the efficiency & career growth of the workers on which
19% of people strongly agree to it and 9 % of the people disagree with the question.
So it can be concluded that majority of people believe that the existing Performance
Appraisal system does influence the efficiency & career growth of the workers.
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Does Performance Appraisal System has its influence over the efficiency & career growth of the workers?
6% 3%
19%
a. Strongly Agree
b. Agree
c. Disagree
d. Strongly Disagree
72%
Question No. 5
Out of the respondents so interviewed indicates that 50% of persons have responded that training
imparted to them in past does have an effect on their performance and 28 % of people believe that
training imparted to them does not have any effects on their performance where as 22% of
respondents do not want to give any comments.
So it can be concluded that training imparted to people in past do effects their performance.
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Doe s training imparte d to you in the past has e ffe ct on your pe rformance ?
22%
a. Yes
b. No
c. No Comment
50%
28%
Question No. 6
Out of the respondents so interviewed indicates that about 36 % of the respondent indicates
that Perfomance Appraisal System bring out real training & development needs and 33 %
said it does not bring out real training & development needs where as 31 % do not want to
give any comments.
Hence it can conclude that Performance Appraisal do bring the real training & development.
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Does the current System of Preformance Appraisal bring out real training & development needs?
31%
36%
a. Yes
b. No
c. No Comment
33%
Question No. 7
Out of the respondents so interviewed indicates that 4 % of people gets only 1 promotion in
their tenure of service, 25 % of people gets 2 promotions in their tenure, 32 % of people gets
3 promotions in their tenure and only 39 % of people gets 4 or more promotions in their
tenure of service.
So it can be concluded that period to remain in a particular post is too long or rather
promotion occurs after a long time. Promotion in C.C.L occurs in a fixed interval of period.
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4%
25%
39%
a. 1
b. 2
c. 3
d. 4
32%
Question No. 8
Out of the respondents so interviewed indicates that 22 % of the people agrees that there is an
alternative way to compensate them if promotion has not been given to them where as 64 %
of people dont agree to it and 14 % of persons is indifferent to such thing as they gives no
comment to it.
So we can conclude that the alternative way to compensate the employees if promotion is not
provided to them is very less.
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14%
22%
a. Yes
b. No
c. No Comment
64%
Question No. 9
Out of the respondents so interviewed indicates that 67 % of people agree that Performance
Appraisal system helps in taking right decision regarding promotion on which 11 % are
strongly agree while 33 % disagree with the question raised.
So we can conclude that Performance Appraisal system do helps in taking right decision
regarding promotion.
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Does Performance Appraisal help in taking the right decision regarding the promotion?
11%
33%
a. Strongly Agree
b. Agree
c. Disagree
d. Strongly Disagree
56%
Question No. 10
Out of the respondents so interviewed indicates, 70 % of people believe that there is a system
of Service Linked Upgradation in the organization and 8 % of people dont agree to it where
as 22 % people gives no comment to it.
So we can conclude that there is a system of SLU in the organization which is the way to
compensate the people when promotion is not given to them due to some circumstances.
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22%
a. Yes
b. No
c. No Comment
8%
69%
Question No. 11
Out of the respondents so interviewed indicates that 70 % of people believe that their
relationship with the superior, peers & subordinates affects the performance and 19 % of
people are strongly agree 11 % of the people are disagree with such a relationship on which 3
% are strongly disagree
So we can conclude that the relationship of people with their superiors, peers & subordinates
do effect their performance.
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8%
a. Strongly Agree
3%
b. Agree
19%
c. Disagree
d. Strongly Disagree
69%
Question No. 12
90
Do discussion on the task asssigned to you take place with your superior?
14%
8%
a. Yes
b. No
c. No Comment
78%
Question No. 13
Out of the respondents so interviewed indicates that only 42 % of people agree that
performance imbalance is communicated to them satisfactorily and 36 % of respondents does
not agree to it where as 22 % of people do not want to give aany comments.
So we can conclude that performance imbalance is communicated to the employees
satisfactorily
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22%
a. Yes
b. No
42%
c. No Comment
36%
Question No. 14
Out of the respondents so interviewed indicates that 42 % of respondents strongly agreed that
promotion provide motivation to the employee and 33 % of people only agreed to it where as
25 % of respondents disagreed to it.
So we can conclude that promotion provide motivation to employees in C.C.L.
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25%
a. Strongly Agree
b. Agree
c. Disagree
42%
d. Strongly Disagree
33%
Question No. 15
Out of the respondents so interviewed indicates that 70 % of people wants to have an open
performance appraisal system in the organization and 30 % of people as 22% of people are
indifferent so they gives no comment.
So we can conclude that employee wants to have an open appraisal system in the organization
in spite of the prevailing system in the organization.
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Do you want open Performance Appraisal System in place of present prevailimng system?
30%
a. Yes
b. No
c. No Comment
70%
Question No. 16
Out of the respondents so interviewed indicates that 5 % of the people said that time fixed for
Performance Appraisal is 3 months and 6 % of the perople said it is 4 months and 17 % of
them said it is 6 months where as 72 % of the people said it is 12 months.
So we can conclude that majority of the people said that time fixed for Performance
Appraisal is 12 months.
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6%
6%
17%
a. 3 months
b. 4 months
c. 6 months
d. 12 months
72%
Question No. 17
Out of the respondents so interviewed indicates that 39 % of the respondent agree that the
current Performance Appraisal System is transparent and 22 % said it is not transparent
whereas 39 % do not want to give any comments
So it can be concluded that the current Performance Appraisal System in C.C.L is not
transparent
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39%
a. Yes
b. No
39%
c. No Comment
22%
Question No. 18
Out of the respondents so interviewed indicates that 39 % of the respondent agree that present
Performance Appraisal System rates their efficiency effectively and 28 % said they do not
agree that Performance Appraisal System rates their efficiency effectively where as 33 % do
not want to give any comments.
So it may be concluded that the present Performance Appraisal System rates their efficiency
effectively.
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33%
39%
a. Yes
b. No
c. No Comment
28%
Question No. 19
Out of the respondents so interviewed indicates that 55 % of the respondent agree that the
quantity of work gets reflected in their Performance Appraisal and 28 % said it is not
reflected where as 17 % do not want to give any comments in the matter.
So it can be calculated that quantity of work get reflected in their Performance Appraisal.
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17%
a. Yes
b. No
c. No Comment
56%
28%
Question No. 20
Out of the respondents so interviewed indicates that 61 % of the respondent agree that
Performance Appraisal System dependent upon quality of work and 14 % said it
is not dependent upon quality of work where as 25 % expressed their
ignorance.
So it can conclude that majority of the respondent agree that Performance
Appraisal System dependent upon quality of work
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25%
a. Yes
b. No
c. No Comment
61%
14%
FINDINGS
India is a third largest country in the production of coal. Coal India Limited is the main
source in the production of coal. Coal India limited is the second greatest employer after
Railway.
C.C.L, having a vast repot ire of human resource, follow a well defined metrices to appraise
performance for both executive & non executive.
With the help of interview and discussion and on the basis of instrument of defined
questionnaire I found that the member of the C.C.L is aware of the method of Performance
Appraisal and they feel the need of this system in the Organization.
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Performance Appraisal in the company is being at a regular interval of one year (12 months).
They feel that the system has its influence over the efficiency & career growth of the workers
Performance Appraisal of individual employee is sought for by the NEE department only
when the promotion of the concerned employee is under consideration. Otherwise the
Performance Appraisal of the worker concerned is kept with the HOD of the department
where the worker is posted.
Research reveals that there is general awareness regarding the Performance Appraisal process
in the organization.
The Performance Appraisal in the company is probably a confidential one where there is no
interaction of the superior with the subordinate at the time of assessment of performance.
However instances have been seen that the Performance Appraisal is made in front of the
worker but even then the strength and weaknesses of the worker has not been conveyed to
him.
The study of Performance Appraisal system at C.C.L. has given me an opportunity to have
closer look at the different imperatives of the appraisal system as an important domain of HR
delivery.
After studying the different factors that affects variably the performance, I would like to give
certain suggestions herewith, which further can be added on the agenda of HR initiatives at
C.C.L.
SUGGESTION
1. Features and tools of Performance Appraisal system should be changed so that the
subjectivity is reduced and an individual bias that may impact the effectiveness of
performance management system is inactivated.
2. System should be redesigned for objectivity, transparency and consistency across
C.C.L.
3. Management by objectives (MBO) should also be applied. It is the modern and
advanced method of appraisal. MBO is potentially a powerful philosophy of
managing and an effective way for operationalizing the evaluator process. It seeks to
minimize external controls and maximize internal motivation through goal setting
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between the superior and subordinates and increases the subordinate control over their
own work.
4. The self appraisal form should have open-ended approach to get the true picture of
individuals competence level (strength and weakness). The employee should not
hesitate in giving their weakness.
5. The process of 360-degree appraisal should be applied to make the system more
transparent.
6. The review should be done quarterly and specifically focused on feedback and
coaching and hence should require the appraisee and the appraiser to have formal
feedback session. This will further help the appraiser in both obtaining information
and providing inputs on how an appraisee is performing and whether or not he /she is
headed in the right direction. It will be an opportunity for the appraisee to get
resources and help that may be required for enhancing his/her own performance.
7. Personal interview can be introduced in Performance Appraisal system for promotion
in C.C.L.
8. Apart from assigned jobs which are very difficult to quantify, a system needs to be
involved which is imperative.
Conclusion
The study on Performance Appraisal at CCL has given me opportunity to have a closer look
at the imperatives of the performance Appraisal System as a domain of HR delivery.
It has enhanced my knowledge as how an organization work and operates to perform its
operations effectively and efficiently. The project has not only helped me to have close
insight into the practical implication of business process but also the performance appraisal is
done.
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While going through the different process followed at CCL within performance Appraisal, I
came to know of the importance of performance appraisal. This opportunity to work as
researcher has helped me understanding the theoretical and practical aspects of management.
The summer project, also made me realize the importance of HR as a fascinating function in
an organization. I got to know of the importance of communication and interpersonal skill in
getting things done from others. In a nut shell, it was great learning for me as management
student.
With the help of personal interview and discussion with the employee and on the basis of
instrument of defined questionnaire I reached on the following conclusion.
1. According to respond given against the question no. 1, 2, 3, it can conclude that
majority of the respondent are know about the Performance Appraisal System and
they feel its need in the organization, they rated it good. It means that Performance
Appraisal System is satisfactory in the organization.
2. According to respond given against the question no. 4, 5, 6, 9 and 14 it can conclude
that Performance Appraisal System affected the workers in many respect. They affect
the efficiency & career growth of the workers. It brings out training 7 development
needs of the workers. It means it provide motivation to workers and helps in taking
the right decision.
3. According to respond given against the question no. 11,12,13,15 and 17, the
relationship of the workers with superior, peers and subordinate is good. Any task
assigned to workers is communicated to them. Thus it can be concluded that open and
transparent Performance Appraisal System is prevailing in the organization and their
relationship is satisfactorily.
4. According to respond given against the question no.7, 8 and 10, it can conclude that
majority of the respondent get promotion in their service period. If they do not get any
promotion, they are compensated by other means like SLU/SLI. It means ,workers are
satisfied with the Performance Appraisal System in the organization.
5. Annual Performance Appraisal System is prevailing in the organization
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6. According to respond given against the question no.18,19 and 20, it can be concluded
that Performance Appraisal System dependent upon quantity and quality of work.It
means it rate the efficiency of the workers effectively.
Questionnaire
For Study
On
PERFORMANCE APPRAISAL SYSTEM
AT
CENTRAL COALFIELDS LIMITED
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Questionnaire
Personal Data
1. Department: ..
2.
Designation: .
3. Grade:
4. Tenure of service in company: ..
5. Tenure of grade in present position: ..
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6. Gender: ..
7. Age:
1. Are you aware of method which is followed for your Performance Appraisal in this
organization?
a)Yes
2.
b)No
a)Strongly Agree
Disagree
b)Agree
c)Disagree
d)Srongly
b)Very Good
c)good
d)Average
4. Does performance appraisal system has its influence over the efficiency & career growth
of
workers?
a)Strongly Agree
Disagree
5.
b)Agree
c)Disagree
d)Strongly
Does training imparted to you in the past has effect on your performance?
a)yes
b)No
c)No Comment
6. Does the current system of Performance Appraisal bring out the real training &
development needs?
a)yes
7.
b)No
c)No Comment
How many promotion do you get in your tenure of service in this organization?
a)1
b)2
c)3
d)4
8. Is there any way to compensate you if promotion has not been given to you?
a)Yes
b)No
c)No comment
9. Does performance Appraisal system helps in taking the right decision regarding the
promotion?
a)Strongly Agree
Disagree
b)Agree
c)Disagree
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d)Strongly
b)No
c)No comment
11. Does your relationship with superior, peers and subordinates affect your performance?
a) Strongly Agree
Disagree
b)Agree
c)Disagree
d)Strongly
12. Do discussion on the task assigned to you take place with your superior?
a)Yes
b)No
c)No comment
b)No
c)No comment
b)Agree
c)Disagree
d)Strongly
15. Do you want open Performance Appraisal System in place of the present prevailing
system?
a)Yes
b)No
c)No comment
b)4 months
c)6 months
d)12 months
b)No
c)No comment
18. Is the present Performance Appraisal System rates your efficiency effectively?
a)Yes
b)No
c)No comment
b)No
c)No comment
b)No
c)No comment
21. Any suggestion for the improvement of appraisal system at CCL ? Please prioritize them
in order?
a).
b)
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c).
BIBLIOGRAPHY
Aswathapa, K. (2008) human Resource Management, fifth edition, new Delhi, Tata
McGraw-Hill publishing co.ltd.,
http://WWW.Performance_appraisal.com
http://en.wikipedia.org/wiki/performance_appraisal
http://www.business-marketing.com/store/appraisals.html
http://www.businessballs.com/performanceappraisals.html
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