INTRODUCTION

Performance appraisal refers to all the formal procedures used to evaluate an

individual, his contributions and potential. In other words, it is to plan and measure
the performance of an individual in terms of the requirement of the job or it is a
process of finding out how effective the organization has been at hiring and placing
an employee.

Performance appraisal is a formal system of review and evaluation of

individual or team task performance. While evaluation of team performance is critical
when teams exist in an organization, the focus of performance appraisal in most firms
remains on the individual employees. Regardless of the emphasis, an effective
appraisal evaluates accomplishments and initiates plans for development, goals and
objectives.

Performance appraisal is essential to understand and improve the employee’s

performance through HRD. In fact, performance appraisal is the basis for HRD. It was
viewed performance appraisal was useful to decide upon employee promotion /
transfer, salary determination.But the recent developments in human resources
management indicate that performance appraisal is the basis for employee
development.Performance Appraisal indicated the level of desired
performance level, level of actual performance and the gap between these two. This
gap should be bridged through human resources development techniques like training
executive development etc.

In Simple way Performance Appraisal maybe understood as the

assessment of an individual’s performance in a systematic way, the performance
being measured against such factors as job knowledge, quality, leadership abilities,
supervision, co-operation, judgment, versatility so on. Assessment should not be
confined to past performance.

MEANING & DEFINITION:

Performance is synonymous with behaviour; it is what people actually do.

Performance includes those actions that are relevant to the organizational growth
and can be measured in terms of each individual’s proficiency(level of contribution).

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Effectiveness Performance refers to the evaluation of results of performance that is
beyond the influence or control of the individual.

Performance appraisal is designed to maximize effectiveness by bringing

participation to more individual level in that it provides a forum for consultation about
standards of work, potential, aspirations and concerns. It is an opportunity for
employees to have significantly greater influence upon the quality of their working
lives. In these times of emphasis on “quality”, there is a natural equation: Better
quality goods and services from employees who will enjoy better quality “goods and
services” from their employers.

Performance appraisal is a systematic means of ensuring that managers and

their staff meet regularly to discuss post & present performance issues to agree what
future is appropriate on both sides. Performance appraisal must be seen as an intrinsic
part of a manager’s responsibility but not an unwelcome and time-consuming addition
to them. It is about improving performance and ultimate effectiveness.

Performance Appraisal is a formal structured system of measuring &

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 an employee organization & society all benefits.

Performance Appraisal is systematic evaluation of the individual with respect

to his or her performance on the job and his or her potential for development.

The appraisal of performance should be geared to:

 Improving the ability of the jobholder;

 Identifying obstacles which are restricting performance
 Agreeing a plan of action, that will lead to improved performance.

FEW DEFINITIONS:

Dale Yoder: “Performance appraisal refers to all formal procedures used in working
conditions to evaluate personalities and contributions and potential of group
members”.

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Flippo: “Essential purpose in this systematic & periodic appraisal is the accurate
measurement of human performance. It attempts to reduce, if not to eliminate human
bias and prejudice by means of a system, subject to impartial review and check”.

Smith: “Performance appraisal is the process of evaluating an employer’s

performance of the job in terms of its requirement”.

C.B.Mamoria: “Performance appraisal is the process of evaluating the performance

& the qualifications of the employees in terms of the requirement of the job for which
he is employed, for purposes of administration including Placement, selection for
promotion, providing financial rewards and other actions, which require differential
treatment among the members of a group as distinguished from actions affecting all
members equally”.

OBJECTIVES OF PERFORMANCE APPRAISAL:

 To provide feedback to employees so that they come to know where they stand
and can improve their job performance.
 To provide a valid data base for personnel decision concerning Placements,
pay, promotions, transfers, punishments, etc,.
 To diagnose the strengths and weakness of individuals so as to identify further
training needs.
 To provide coaching, counseling, career planning and motivation to
subordinates.
 To develop positive superior – subordinates relations and thereby reduce
grievances.

CHARACTERISTICS:

 It is process of consisting of series of steps.

 It is the systematic examination of an employee’s strengths and weaknesses in
terms of his job.
 Formal procedures are used in this study.
 It is an ongoing or continuous process there in the evaluations is arranged
periodically according to a definite plan.
 The main purpose of performance appraisal is to secure information necessary
for making objective and correct decisions on employees.

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 NEED OF THE STUDY

According to the past survey it was noticed that the performance appraisal

system was quite essential for the better performance of the employees.

The study is being made for the following purpose:

 To enhance the employer performances by periodic appraisals and also by

providing incentives, bonuses and rewards to them.

 To measure the subordinate and supervisor performances.

 To improve the commitment among them.

 To motivate the employees for achieving organisational and individual goals.

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 OBJECTIVES OF THE STUDY

Performance appraisal is a process of assessing, summarizing and developing the

work of an employee. In order to be effective and constructive, the performance

manager should make every effort to obtain as much objective information about the

employee's performance as possible. Low performance can push the organization

back.

The various objectives of our research are as follows:

 To examine why an appraisal system is important.

 To find the expectation of appraiser and appraise.

 To determine the satisfaction level of the appraise.

 To reveal the various loopholes in the appraisal system if any.

 To study the performance appraisal implementation in the company.

 To make data analysis and interpretation based on the perception of the

employee in the organization.

 To summarize and find certain suggestions for the impotent of Performance

Appraisal system in the company

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 IMPORTANCE OF THE STUDY

Performance appraisals provide employees and managers with opportunities to

discuss areas in which employees excel and those in which employees need

improvement. Performance appraisals should be conducted on a regular basis, and

they need not be directly attached to promotion opportunities.

 Personal Attention: During a performance appraisal review, a supervisor and

an employee discuss the employee's strengths and weaknesses. This gives the

employee individual face time with the supervisor and a chance to address

personal concerns.

 Feedback: Employees need to know when their job duties are being fulfilled

and when there are issues with their work performance. Managers should

schedule this communication on a regular basis.

 Career Path: Performance appraisals allow employees and supervisors to

discuss goals that must be met to advance within the company. This can

include identifying skills that must be acquired, areas in which one must

improve, and educational courses that must be completed.

 Employee Accountability: When employees know there will be regularly

scheduled evaluations, they realize that they are accountable for their job

performance.

 Communicate Divisional and Company Goals: Besides communicating

employees' individual goals, employee appraisals provide the opportunity for

managers to explain organizational goals and the ways in which employees

can participate in the achievement of those goals.

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 SCOPE OF THE STUDY

To know the function of the organization how they are really functioning how

the policies are made and implemented and conveyed to the employees, to know these

things visited several departments of Lanco Kondapalli Power Ld. Those departments

are:

 Human resource development department.

 Personnel management department.

 Finance department.

 Marketing department.

 Legal department.

 Works department.

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 LIMITATIONS OF THE STUDY
As the study revolves around the performance appraisal of human resources aspects

the overall organization performance cannot be ascertained. In spite of giving honest

and sincere efforts there are several limitations, which are as follows:

 The period of study is only for 45Days, which is a major constraint.

 The perception bias or attitude of the respondents may also act as hurdles to

the study.

 The study is only confined to performance appraisal.

 The sample size taken for the research is small due to the constraint of time

 The study is only on academic point of view.

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 RESEARCH METHODOLOGY
The research methodology refers to the step tank by the researcher to solve the
research problems. It facilitates research to be efficient as possible yielding maximal
information. In other words its function is to provide for the collection of evidence
with minimal expenditure of effort, timing and money.

RESEARCH DESIGN:

A research design is the arrangement of conditions for collection and analysis of data
in a manner that aims to combine relevance to the research purpose with economy in
procedure. The methods to be adopted for collecting the relevant data and the
techniques to be used have to be planned in advance with the objective in mind. A
descriptive type of research design has been followed

DATA COLLECTION:

A. Primary data: The primary data are those, which are collected freshly and for
the first time, from the employees directly. It is collected through the following
methods.
 Questionnaire: A structure of questionnaire was prepared and distributed
among the employees & workers.
 Interview: Personal interviews and interaction with the employees and
contractor labour.
 Observation: By observing the working environment.
B. Secondary data: The secondary data are those which have already been
collected by someone or else which have been passed through statistical process.
Various sources are available like synergies monthly books, files, records etc.,

SAMPLE SIZE:

A sample of 50 employees has been selected .Although it looks to be a small sample

keeping in view the large number of employees it has to be limited because of time
constraint .Even then the sample size is not considered to be small, it is enough to
draw conclusions.

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TYPE:

Since employees from all levels namely the top level, the middle level, and the lower
level are bound to experience stress, the sample has to include employees from all
levels. Stratified random sampling technique was selected while preparing
questionnaire as this was the only technique that helped to draw conclusions
accurately

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 INDUSTRY PROFILE

AN OVERVIEW OF THE INDUSTRY:

ELECTRICITY is one of the vital Requirements in the overall development of
the Economy and is therefore, appropriately called the “Wheel of Development “. In
fact, the power Sector has played a dominant role in the Socio-Economic
development of the Country. As a Convenient Versatile and Relatively cheap form of
Energy it plays a crucial role in Agriculture, Transport, Industry and Domestic Sector.
Hence, Power has all along remained in the priority list of Indian Planners and Plan
Outlays have reflected this aspect. The Outlays for Power Sector have been around
19% of the Total outlays for the Public Sector in various Plan Periods.
There has been a Spectacular Increase in the installed Generating Capacity of
Electricity in the Country. Despite Tremendous increases in the availability of power
since independence there is a cute power shortage gap between demand and supply.
The Precipitate Consumption of power in the Country is very low as Compared to the
position in the developed countries. Power is a Key input for Economic Growth has as
direct Relationship with the National Productivity and also the overall Economy of
the Country.
There has been Diversification of the sources of Generation in 3 terms. They are:
 Hydel Source
 Thermal Source
 Nuclear Source.
The share of hydel in the total generating capacity had drastically come down and
that of thermal had shown noticeable increase. Another Significant change is the
increasing share of Central sectors in recent years.
The Share of the thermal Element in the installed Generating Capacity, which is also
Predominantly Coal-based, shows a steady increase. Thus, the Relatively Cheaper and
a more desirable change in terms of a higher share of Hydel source, which is
Renewable, have not materialized.
POWER SCENARIO: The Power sector is at Cross roads today. There is a Chronic
power Shortage in the Country mainly Attributable to demand of power continuously
outstripping the Supply.
HYDEL POWER: In the Present Global Energy context, there are certain aspects,
which have acquired a new significance. The development of hydro power has to be

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given a major thrust in the current decade. Our Country has large untapped Hydro
Power Potential, but its development has slowed down due to lack of Financial
Resources, Interstate Rivalry, Inefficiency of certain state electricity boards,
Variations in the Coerce of the monsoons Etc., a concerted effort is imperative to
overcome the hurdles and enlarge the share of the Hydro Power Generation in the
Country.
This will help not only in tapping a Renewable resource of energy, but will
provide essentially needed Peaking support to thermal power generation with the
pattern of demand for electricity. Since, the planners initial enthusiasm about the large
hydel projects has waned somewhat, India will do well to take resource to the Chinese
pattern of micro and mini hydel Projects wherever the terrain is suitable.
The National Hydroelectric power Corporation has been assigned a dominant role in
accelerating the development of the large Hydel Potential in India, Particularly in the
Himalayan region.
A top level official Committee has recommended a Rs.300 corer renovation and
modernization (R & M) programmed that will seek to cover 93 Hydel Power Plants in
India and result in additional Capacity of 527.81 Mw.
The Growth of the Power Sector was marked by adequate share of Hydro Capacity up
to the end of third Five-Year plan (1961-66). However, there after there has been a
continued decline and the Proportion of hydro power has dropped from 45.86% in
1966 to about 285 by March 1992. Many of the Problems in the Power Tamilnadu
have carried out Feasibility Studies on 72 sites with a total Potential of 150Mw.
THERMAL POWER: Thermal units have emerged as the largest source of power in
India. But unfortunately, the progress of power generation in this sector has not been
marked by any new break through. At present stress Continuous to be laid on Thermal
Power Station because of shorter Construction time. Using better project management
techniques is shortening the construction period for these plants. It has been Possible
to improve overall efficiency of thermal plant by using gas turbines in Conjunction
with Conventional steam Turbines.
The Union Government has, in order to step up Central Generation in the
Country, Established super Thermal Power Station in different regions. The National
Thermal Power Corporation (NTPC) was established in 1975 with the object of
planning promoting and organizing integrated development of thermal power in the
Country.
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HIGHLIGHTS: Two Parts system for Thermal Tariffs and Single Tariff for Hydel
Projects.
 Exchange Fluctuations to be compensated.
 Operation and Maintenance Expenses at 2.5 percent respectively for Thermal
and Hydel units in the base year.
 Optimal Capacity utilization norm for Thermal units, 6000 Kwh/Kw/Year
900% dependable hydrology for stations exceeding 15 HE Capacities. Tariff
to be computed for a period of five years. Rate of return on equity will be
16%.
GEOTHERMAL ENERGY: Geo Thermal Energy can be explained in simple terms
as the Thermal Energy available at a depth of 5 meters below the ground where the
Temperature remains stable all round the year between 15-18 degrees centigrade i.e.,
59-65 degrees Fahrenheit. This Thermal Energy does not change with respect to the
outside temperature considerably.
The only change visible is very small which also has a time lag with respect to
outside temperature. The temperatures beneath the ground are supply and power
system in the country can be attributed inter alia to the declining hydro share in the
power system and Consequent growth of Thermal development in the Sub-Optimal
manner.
Government of India has recently constituted a group to identify new hydel
projects on which advance action can be taken. In order to give a boost to the
development of Hydro Power more and more Hydro Electric projects are being
planned or being implemented in the Central Sector. In order to achieve this Four
Corporations have already been set up under central or in Joint Sectors. They are
 National Hydro Electric Power Corporation (NHEPC)
 North Eastern Electric Power Corporation (NEEPCO)
 Tathpa Jyohri Power Corporation (NJPC)
MINI HYDEL PLANTS: There are a number of States in the Country where mini
Hydel Projects can be set up at comparatively lower investments to supplement other
sources of Energy. According to Reliable estimates the total Potential of Mini-Hydel
Plants all over the Country is around 5000 Mw. This includes 2000 Mw in hilly areas
at “High heads and Low Discharge “points and 300 Mw at “Low heads and Low
Discharge “points.

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 Many of the states have surveyed potential Mini-Hydel schemes and identified
several sites for instance, Punjab has identified 130 falls, with a Combined Capacity
of 100 Mw. Andhra Pradesh has identified Projects that could yield a total of 50Mw
while Karnataka has Estimated that some 175 Mini-Hydro Projects in the state could
yield 200 Mw.
Jammu & Kashmir have identified 54 Mini-Hydel project sites while rather
cool (15 degrees C) when in summer and warm enough (18 degrees C) during winter.
This provides the feed for the Natural Air Conditioning System.
NUCLEAR ENERGY: The Planners right from the beginning understood the
importance of Nuclear Energy in meeting the Country’s Long-term Energy needs.
Recognizing that Nuclear Technology would be subject to a Progressively Restrictive
Technology Central Regime and also that the Long-term Strategies for Exploitation of
the Country’s vast Thorium Resources are bound to be somewhat different from those
of most other Countries engaged in Nuclear Power Development, Tremendous
Emphasis was placed on achieving self reliance in technology development.
This Policy has yielded rich dividends and today one can proudly use the
realization of indigenous capability in all aspects of the Nuclear fuel Cycle.
 Tarapur Atomic Power Station (TAPS): It Provides Electricity to Maharashtra
and Gujarat.
 Rajasthan Atomic Power Station (RATS): It Provides Electricity to Rajasthan.
 Madras Atomic Power Station (MAPS): It provides Electricity to Madras.
 Narora Atomic Power Station (NAPS): It Provides Electricity to up and Delhi.
Advantages:
 Nuclear Source is clean, compact and concentrated.
 Nuclear is Economical.
 A unit of Electricity from the Nuclear Power Station at Tarapure and
Kalpakkam cost 40 to 58 paisa per KHz compared with 60 to 90 paisa per
Kwh from Thermal Station is the respective regions.
 The Greatest advantage of Nuclear Power is that it can be installed in location
even remote from Hydel and Coal Resources.
OCEAN ENERGY: The long Standing to tap Non-Conventional Source of Ocean
Energy for power generation is expected to get a fill up with a joint team of the
Tamilnadu Electricity Board and the Ocean Energy cell of Indian Institute of

14
Technology, Madras Commending the offer of the U.S. based firm Sea Solar Power
(ssp) to set up 6 ocean thermal energy conversion (OTEC) plants of 100 Mw
Capacities each along the Tamilnadu coast for Serious Consideration and
Recommending the setting up of on plant to begin with at Kulasekarapatnam area.
The Capacity Cost per Kw of Power Production is estimated as US $1000 for
OTEC plant Compared to US $1100 for oil based US $2200 for Coal based, US
$2340 for hydro, and US $2450 for Nuclear Power. The Fuel Cost in the case of
OTEC is practically zero. Moreover Valuable Bi Products are obtained from OTEC
plants. These include fresh water for Irrigation and Drinking, Hydrogen and Oxygen
which can be used as fertilizing and methanol that can be mixed with gasoline. If the
value of the power and By-products are added together, the annual income of the
typical 100Mw plant can amount to more than US $100 million.
WIND ENERGY: Wind Energy is fast emerging as the most Cost-Effective source
of power as it combines the abundance of a natural element with modern technology.
The Growing interest in wind power technology can be attributed not only to its cost
effectiveness but also to other attractive features like Modularity, Short project
Gestation and the Non-Polluting nature of the Technology. In India, the Exercise to
hardness Wind Energy includes wind pumps, wind battery charges. Stand alone wind
electric generators and grid connected wind farms. The department of Non-
Conventional Energy Sources (DNES) in association with state agencies has been
responsible for creating and sustaining interest in the field.
SOLAR ENERGY: Solar Energy is believed that with just 0.1 percent of the 75,000
trillion KHz of Solar Energy that reaches the earth, Planet’s Energy Requirement can
be satisfied Electricity can be generated with the help of solar energy through the
Solar Thermal Route, as well as directly from Sunlight with the help of Solar Photo
Voltaic (SPV) Technology. SPV systems are being used for Lighting, Water
Pumping, and Telecommunications and also for village size Power plants in rural
areas. SPV systems are being used to Provide Lighting under the National
Immunization Programme, Drinking water and Power for Tele-Communications.
Indian Railways have been using this Technology for Signalling.
Problems of the Industry:
The Power Sector in India is beset with a number of problems. They Relate to
delays in the Formulating and Implementation of various Projects, Poor Utilization of
capacity, Bottlenecks in the supply of coal to Thermal Station, and its Poor Quality,
15
faulty distribution and transmission arrangements and bad Planning leading to an
Injudicious hydel Thermal mix. Ecological Problems are also vexing this sector.
Hurdles in Environment Clearances tend to slow down Completion of Power
projects Compensatory A forestation and land Acquisition has proved to be major
bottlenecks in the clearance of power projects. The main problem faced in the case of
Environmental Clearances is the shortage of land for Compensatory A forestation.
While Project Authorities are prepared to invest funds in A forestation land, the state
governments are not able to provide the required land. The Government has proposed
to set up a task force to look in to clearances for power projects and speed up the
clearances.
THE STATE ELECTRICITY BOARDS:
The State Electricity boards (SEBs) are autonomous bodies created under the
Electricity (supply) act, 1948 and have the Statutory Responsibility of generating and
supplying power in the most Economical manner to the consumers. The underlying
idea behind the central enactment was to confer autonomy on the SEBs so as to
enable them to function strictly on commercial principals.
ROLE OF NATIONAL THERMAL POWER CORPORATION (NTPC):
In just 17 years National Thermal Power Corporation (NTPC) has grown to be
the largest producer of electric power in the country, with over 13000 Mw
Commissioned Capacity and approved capacity of 16,835 Mw at an estimate of Rs.
23,218 crore. This installed capacity of the company accounts for about 26% of the
Thermal Capacity and 18% of the total capacity of the country.
The company has also played the lead role in the augmentation of transmission
network by setting up of around 17000 circuit Kilometres of high voltage
transmission networks across the country. These transmission systems now stand
transferred to the newly formed power grid corporation of India. NTPC has been
playing a significant role in meeting the countries power demand.
PRIVATE SECTOR PARTICIPATION IN POWER GENERATION:
The Central Government has formulated a scheme to encourage greater
Participation Private Enterprises in electricity Generation, Supply and Distribution.
Private Enterprises can set up units either as Licenses area from own Generation or
Purchased Power or as Generating Companies, Generating power for Supply to the
Grid.

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 The Breakup of the Capital investment is:
 20% Equity out of which at least 11% to be raised as promoter’s
Contribution.
 80% of the Capital Investment to be raised through loans and only 50% of this
amount could be raised from Public F1s.
 Debt Equity Ratio has been raised up to 4:1.
 Increase in the Prescribed rate of return for the license has been approved from
the existing 12% to 15%.
 Capitalization of interest during Construction has been permitted at the actual
cost (instead of the present 1% above the Reserve Bank Rate) for the initial
project as well as for the subsequent expansions.
 Period of initial validity of the license has been increased to 30years from the
existing 20years and subsequent extension for 20years on each Occasion.
 Private Licenses have been exempted from the Obtaining Clearance under the
MRPT act.
 To Ensure Additional Resources Mobilization it has been proposed that at
least 60% of the outlays come from Sources other than Public Financial
Institutions and at least 11% through Promoter’s Contribution.
 A Special Cell to be created in department of power to deal with proposals
expeditiously for private sector Participation.
THE FUTURE:
Government’s Decision to invite the Private Sector to participate in the Power
Generation Sector is most Opportune and Constructive Approach par Excellence. The
Positive and Encouraging initiatives from the Government are bound to find
Favorable Responses from the Private Sector. The Solution to our Perennial Power
Crunch Seems to Lie in Private Participation

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 COMPANY PROFILE

The Lanco group of Companies was Established

Nurtured and Developed by a team of dedicated young
Technocrats. The burning desire to achieve Versatility in
Engineering Spawned the Magnificent decade-old growth
of the present day multifaceted Conglomerate that touches the nerve Centre of the
Country.
L Rajagopal, a technocrat-turned industrialist, is the Founder Chairman of LANCO
Group. In addition to his entrepreneurial spirit, Rajagopal has a strong sense of social
responsibility. He established LANCO Foundation (formerly LIGHT), a Charitable
Trust, in the year 2000 to reach out to the needy and has been involved in various
philanthropic activities. After one-and-a-half decades of outstanding contribution to
the industry, Rajagopal chose to enter public life in 2003. He is a Member of
Parliament, India. His avowed mission is to make a difference in the life of the
common man.
INTRODUCTION TO GENTING LANCO POWER (INDIA) PRIVATE
LIMITED
Genting Lanco Power Private (India) Private Limited is a Subsidiary of Genting
Group of Companies based at KUALA Lumpur, MALAYSIA. Genting group has its
presence in diversified fields like Power, Plantations, Paper & Packaging,
Entertainment, Resorts & Hotels, Property development, and Cruise liners, E-
Commerce, Oil and Gas.
Genting Group is Malaysia’s Leading Multi-National Corporation and one of
Asia’s best-managed Companies with over 36,000 employees globally. The group is
renowned for its strong management leadership, Financial Prudence and Sound
Investment discipline.
 The Combined market Capitalization of the group is about US $ 9 billion.
 The Operation revenue for the group of Year 2004 is US $ 1.25 billion.
Genting Lanco Power (India) Private Limited has entered in to a 15 years Operations
and Maintenance Agreement with Lanco Kondapalli Power Private Limited, who is
the Owners of the 368 MW gas fired combined-cycle power plant at Kondapalli.
Genting Lanco Power (India) Private Limited has its registered office at Lanco
Kondapalli Power Plant, Kondapalli IDA, and Krishna District.

18
Lanco group of companies (under power): LANCO has proven expertise in power
generation from conventional and non-conventional sources of energy including gas,
coal, biomass, hydro and wind. Lanco has operational and under execution projects
amounting to over 8000MW.
Company Overview: Genting Lanco Power (India) Private Limited provides power
generation, engineering, and construction and manufacturing services. It is a 355 MW
(ISO) liquid fuel-based combined cycle power plant. The company is headquartered
in Hyderabad, India. Lanco Kondapalli Power Ltd. operates as a subsidiary of Lanco
Infratech Limited.
Genting Lanco Power (India) Private Limited is an Independent Power Project
(IPP) located at Kondapalli Industrial Development Area near Vijayawada in India.
Set up at a cost of around Rs 12,400 million (US$ 275 million), this Combined Cycle
Power Project operating on Natural Gas as primary fuel is being developed in various
phases. Phase I of 368.144 MW is operational since October 2000. The project has
two Gas Turbines of GE Frame 9E, two Heat Recovery Steam Generators and one
Steam Turbine. Based on a Power Purchase Agreement (PPA) for a period of 15
years, the plant has to supplies power to the Transmission Corporation of Andhra
Pradesh Limited (AP TRANSCO). Out of the second phase of 366 MW, 233 MW is
already operational and the power has sold on merchant basis. Genting Lanco Power
(India) Private Limited is an Independent Power Project (IPP) located at Kondapalli
Industrial Development Area near Vijayawada in India. The Plant is a 368.144 MW
Combined Cycle Power Project operating on Natural Gas as primary fuel.
The plant has two Gas Turbines of GE Frame 9E, two Heat Recovery Steam
Generators and one Steam Turbine. Based on a Power Purchase Agreement (PPA) for
a period of 15 years, the plant supplies power to APSDCL (Andhra Pradesh Southern
Distribution Company Limited-Transmission Corporation of Andhra Pradesh
Limited (AP TRANSCO).
BACKGROUND
The plant was set up as a short gestation power projects in the private sector
on the basis of "Tariff-Based International Competitive Bidding" as per the
Government of India's guidelines dated 18 January 1995.
Based on Andhra Pradesh State Electricity Board‘s (now the Transmission
Corporation of Andhra Pradesh Limited (AP TRANSCO) tender, Lanco Kondapalli
Power Private Limited was awarded the project on Build, Own and Operate (BOO)
19
basis. LPTL is the largest private sector player in the power trading market, trading
2600 Million Units (MU) in the Financial Year 2007-08. LPTL had more than 60 per
cent of its volume of banking power arrangement with various utilities, amounting to
12 per cent of the market share. LPTL traded from all the five regions of India by
covering 32 utilities from 19 States. LANCO Power Trading Ltd (LPTL) has been
awarded F Category National Power Trading License of CERC (Central Electricity
Regulatory Commission) under the Electricity Act 2003. LANCO Kondapalli Power
Pvt Ltd (LKPPL) has obtained Environmental Clearance from the Ministry of
Environment and Forests for upgrading its capacity by another 1155 MW. This
expansion project will be executed in three phases.
OPERATION & MAINTENANCE
The Operations and Maintenance of the power plant is done by Genting LANCO
Power (India) Pvt Ltd, which is jointly owned by LANCO Infratech, India and
Genting Group, Malaysia.
THE MISSION OF COMPANY
 Development of Society through Entrepreneurship.
 To be a leader in all areas key to development of a nation and progress of the
world.
 To be a leader in the field of Infrastructure, Manufacturing and Information
technology, private power generation.
THE VISION OF COMPANY
 Most Admired Integrated Infrastructure Enterprise.
 To empower, enable and enrich partners, business and associates.
 To be the chosen vehicle of growth for the stake holders and a source of
inspiration for the society.
THE PHILOSOPHY OF COMPANY
Assemble best people, delegate authority and don’t interfere “People make the
difference”.
Business heads are Entrepreneurs.
Mistakes are foots of life. It’s is response to the error that counts.
SUCCESS
Create your luck by hard work.
Trust +delegation= Growth.

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Environment Policy: We are committed to achieve Satisfaction of Interested Parties
and Protect Environment by, Generation of Power by Implementation of Prudent ECO
friendly methods. Conversation of Natural Resources like Natural gas and Water.
Complying all the relevant statutory and regulatory requirements. Continual
Improvement in the Environmental Performance of minimizing the Mission and
Discharges. Enhancing Environmental awareness among Employee’s Contractor’s
and Surrounding Society.
Quality Policy: We are committed to continually improve the Quality of our
Performance through the application of our quality policy. We provide a safe work
place for the direct and indirect employees through minimizing OHS risk. All aspects
of Operations and maintenance of the Power Plant Comply with all Environmental
Requirements, National, State local Loss and Directives. The Operation and
Maintenance activities will provide the best. Possible level of Commercial
Performance for the benefit of all stake holders. We will treat all safe and families
fairly and with respect while Encouraging Personal growth.
LKPPL’S Commitment to Clean and Safe Environment: (Green Belt
Management)
 LANCO Commitment to Re-vegetation
 Encourage Native Fauna to Develop.
 Contribute to a Reduction in Green House Gases.
 Reduce Noise Levels.
 Minimize the Effect of soil-Erosion.
 Help to restore the site to Sustainable System.
 Improve as the aspects of the Power Plant.
 Ongoing trees Planting and maintaining theme are his important aspects of
Environmental Management Program at LANCO.
NOISE MANAGEMENT:
 Efforts to minimize Noise mission from Equipment and activities.
 Acoustic linings around gas and steam turbines and boilers.
 Silencers have been provided.
 Noise Minimization Policy for Equipment.

21
EFFLUENT DISCHARGED FROM POWER PLANT:

 Well-Developed Chemical Laboratory to cater the need for monitoring effluent

quality as per APPCD Norms.
 Gaseous Emission Management – as issues of green has become Prominent in
the Public.
 Water Management – Acknowledges importance of maintaining water Quality.
 Community Participation.
 Environmental Awareness.
PROMOTERS AND EQUITY PARTNERS:
 Geneting group of Malaysia.
 Common wealth development corporation UK.
 Doosan heavy industries & constructions cooperative ltd in Korea.
OUR VALUES:
 Integrity: We choose to be honest in all our Business Interactions and
Transactions and remain steadfast even when challenged. We strive for
consistency between – what we think, what we Say and what we do
 Humility & Respect: We are consistently humble in our approach to and
interactions with people. We treat every person with respect at all times,
unconditionally.
 Positive Attitude: We always demonstrate a ‘can-do’ mind-set and engage to
deliver organizational goals. We look upon challenging circumstances as
opportunities to enhance our capabilities and find ways of achieving.
 Accountability: We own up to our words, actions and outcome. When we
commit to do something, we own it and we do it – decisively and responsibly.
 Innovation: We work harmoniously with a shared vision, energized by our
collective talent. We Trust, Listen to, Share with and Empower team members
and take collective responsibility for the results.
 Teamwork: We value and encourage application of creative ideas that
enhance the effectiveness of our business. We freely express ideas and take
actions to generate successful Solutions.

22
LOCATION ADVANTAGES
Just 1.5 km form fuel storage facility of HP corporation ltd.
Adjacent to 220kwh substation of APTRANSCO.
Close to the river Krishna and up stream of the Prakasam barrage ensuring perennial
water supply.
Nearest Railway Station - Kondapalli Railway Station
Nearest Airport - Gannavaram
Access Road - National Highway No.9
Source of Water - Krishna River 9Km from the Site
Climatic Condition - Tropical Hot, Humid.
PLANT HIGHLIGHTS
First Project cleared by Central Electricity Authority (CEA) under the International
Competitive Bidding (ICB) route for Power Projects in India.
First ICB Power Projects in India to achieve Financial Closure.
One of the lowest in terms of evacuation cost to AP TRANSCO.
First private sector Power Project to receive disbursement of finance from the Power
Finance Corporation Limited, India.
Largest Independent Power Project (IPP) in South India and one of the largest IPPs in
India.
Power purchase agreement firmed with APTRANSCO for 15 years.
Eco-friendly, adhering to highest standards of safety & conversion of nature
resources.
368.144 MW combined cycle power plant under build-operated-own arrangement
with the state government.
RESOURCES
Uninterrupted supply of water is met from the upstream of the Prakasam Barrage on
the River Krishna. The company gets natural gas, the primary Fuel, from GAIL
(India) Ltd based on a long-term contract.
WATER SUPPLY
Water required for the plant is drawn from River Krishna by a 9 km pipe line
upstream of Prakasam Barrage.
FUEL SUPPLY

23
 THEORETICAL FRAMEWORK

Natural gas supply for the plant is based on a long-term Fuel supply Agreement with
Gas Authority of India Limited (GAIL).
Appraisal of performance is wide used in the society. Parents their children,
teacher evaluate their student and employers evaluate their employee. However,
formal evaluation of employees is believed to have been adopted for the first time
during First World War. At the inlands of Walter Dill Scott the US army man to man
rating system for evaluating military personal. Once the employee has been selected,
trained the motivated, he is then apprised for his performance. Performance appraisal
is the step where the management finds out how effective it has been at hiring and
placing employees if any problems are identified, steps are taken to communicated to
employee and to remedy them. A performance appraisal is a process of evaluating the
performance appraisal is a process of evaluating the performance and qualification of
employee according to job and its requirement. It is also known as the process of
estimating and judging the value, excellence. Qualities of status of some object person
or things. Individually and collectively, it is the part of all other staffing process, like
recruitment, selection, placement, etc.
BRIEF DESCRIPTION
 Performance appraisal is the systematic description of an employee’s job-
relevant strengths and weaknesses.
 The basic purpose is to find out how well the employee is performing the job
and establish a plan of improvement.
 Appraisals are arranged periodically according to a definite plan.
 Performance appraisal is not job evaluation. Performance appraisal refers to
how well someone is doing the assigned job. Job evaluation determines how
much a job is worth to the organization and, therefore, what range of pay
should be assigned to the job.
 Performance appraisal is a continuous process in every large scale
organization.
 FEW DEFINITIONS:

24
  Dale Yoder: “Performance appraisal refers to all formal procedures used in
working conditions to evaluate personalities and contributions and potential of
group members”.

 Flippo: “Essential purpose in this systematic & periodic appraisal is the

accurate measurement of human performance. It attempts to reduce, if not to
eliminate human bias and prejudice by means of a system, subject to impartial
review and check”.

 Smith: “Performance appraisal is the process of evaluating an employer’s

performance of the job in terms of its requirement”.

 C.B.Mamoria: “Performance appraisal is the process of evaluating the

performance & the qualifications of the employees in terms of the requirement
of the job for which he is employed, for purposes of administration including
Placement, selection for promotion, providing financial rewards and other
actions, which require differential treatment among the members of a group as
distinguished from actions affecting all members equally”.

PURPOSE:
Performance appraisal aims at attaining the different purposes. They are:
1. To create and maintain a satisfactory level of performance.
2. To contribute to the employee growth and development through training, self
and management development programs.
3. To help the superiors to have a proper understanding about their subordinates.
4. To guide the job changes with the help to continuous ranking.
5. To facilitate fair and equitable compensation based on performance.
6. To facilitate for testing and validating selection tests, interview techniques
through comparing their scores with performance appraisal ranks.
7. To provide information for making decisions regarding lay off, retrenchment
etc.
8. To ensure organizational effectiveness, through correcting employee for
standard and improved performance, and suggesting the change in employee
behavior.

25
CONTENT OF PERFORMANCE APPRISAL:
Every organization has to decide upon the content to be appraised before the
program is approved. Generally content to be apprised may be in the form of
contribution to organizational objectives (measures) like production, cost saving,
return on capital, etc. other measures are based on:
i. Behavior which measure observable physical actions, moments,
ii. Objectives which measure job related results like amount of deposits
mobilized,
iii. Traits which are measured in terms of personal characteristics observable in
employee’s job activities. Content to be apprised may vary with the purpose of
appraisal and type and level of employees.

CONTENTS TO BE APPRAISED FOR AN OFFICER’S JOB:

1. Regularity of Attendance

2. Self Expression: Written and Oral

3. Ability to Work with Others

4. Leader ship Styles and Abilities

5. Technical Skill

6. Technical Ability / Knowledge

7. Ability to Grasp new Things

8. Ability to Reason

9. Originality and Resourcefulness

10. Creative Skills

11. Area of Interest

12. Area of Suitability

13. Judgment Skills

14. Capability for Assuming Responsibility

15. Level of Acceptance by Subordinates

16. Honesty and Sincerity

26
17. Thoroughness in Job and Organizational Knowledge

18. Knowledge of Systems and Procedures

19. Quality of Suggestions Offered for Improvement

Establish Goals
for Programme Develop Policies
for Feeding Back
Data
Do Detailed Conduct
Job Analysis Design physical Programme
Facilities

Define Select Exercises

Dimensions and Participants
to be
assessed Design Assessor
Training Programme

Train Assessors

Provide Feed Back

Evaluate Participants and

Centre Against Job Success
Criteria

Fig: An Assessment Centre Model

27
 Human Performance Employee
Performance Appraisal Feedback

Performance
Measures

Performance
Related
Standards
Human Employee
Resource Records
Decisions

Fig: key Elements of Performance Appraisal Systems

TRENDS IN PERFORMANCE APPRAISAL:

Item Former Emphasis Present Focus
Terminology Merit-rating Performance appraisal
Purpose Determine wage increase, Development of the individual,
Promotion, transfer, lay off. improved job performance.
Application For rank and file workers For managerial and technical
personnel.
Factors rated Personal traits Performance, result or
accomplishments.
Techniques Rating scales with emphasis Mutual goal-setting, critical
upon scores incidents, group appraisal.

CONCEPT OF PERFORMANCE APPRAISAL:

Performance evaluation or performance appraisal is the process of assessing
performance and progress of employee or of a group of employee on a given job and
his potential for future development. In concept of all formal procedure used working
organization to evaluate personality, contribution and potential of employees.

28
THE MAIN CHARACTERISTIC OF PERFORMANCE APPRAISAL IS AS
FOLLOWS:
1. Performance appraisal is the process consisting of series of steps.
2. It is the systematic examination of employee’s strength and weakness in terms of
jobs.
3. Performance appraisal is the scientific or objective study. Formal procedure is
used in the study the same approach is adopted for all job holders for that result is
comparable.
4. It is an organizing or continuous process where in the valuation is arranged
periodically according to a definite plan.
5. Main process performance appraisal is to secure information necessary for making
objective and correct decision on employees.
OBJECTIVES OF PERFORMANCE APPRAISAL:
The main objectives of performance appraisal are as follows:
1. To provide a valid data base for personnel decision concerning placements, pay,
promotion, transfer, punishment, etc.
2. To diagnosis the strength and weakness of individuals so as to identify further
training needs.
3. To provide coaching, counseling, career planning and motivation to subordinates.
4. To develop positive, superior-subordinate relations and there by reduce
grievances.
5. To facilitate research in personnel management.
6. To test the effectiveness of the recruitment, selection, placement and induction
program.
.CHARACTERISTICS:
 It is process of consisting of series of steps.
 It is the systematic examination of an employee’s strengths and weaknesses in terms
of his job.
 It is a scientific and objective study. Formal procedures are used in this study.
 It is an ongoing or continuous process there in the evaluations is arranged
periodically according to a definite plan.
 The main purpose of performance appraisal is to secure information necessary for
making objective and correct decisions on employees.

29
USES OF PERFORMANCE APPRAISAL:
1. It provides valuable information for personnel decisions such as pay increases,
promotions, etc.
2. It helps to judge the effectiveness of recruitment, selection, placement and
orientation system of the organization.
3. It is useful in analyzing training and development needs.
4. It can be used to improve performance thought appropriate feedback, working and
counseling to employees.
5. It facilitates Human Resource Planning, career planning and succession planning.
 Due to this a competitive spirit is created and employees are motivated to
improve their performance in Lanco.
PROCESS OF PERFORMANCE APPRAISAL:
 Establishing performance standards – the appraisal process begins with the setting
up of criteria to be used for appraising the performance of employees. The criteria
are specified with the help of job analysis, which reveals the contents of job. This
criteria should be clear, objective and in writing.
 Communicating the standards – the standards are conveyed to the employees and
the evaluators. A feedback regarding the standards should be obtained from the
evaluators and the employees for revision or modification.
 Measuring performance – this requires choosing the right technique of
measurement, identifying the internal and external factors influencing performance
and collecting information on results achieved.
 Comparing the actual with the standards – actual performance is compared with
the predetermined performance standards. Such comparison will reveal the
deviation, which may be positive or negative.
 Discussing the appraisal – The results of the appraisal are communicated to and
discussed with the employees. Along with the deviations, the reason behind them
are also analyzed and discussed. Such discussion will enable the employee to
know his weaknesses and strengths.
 Taking corrective actions – through mutual discussions with employees, the step
required to improve performance are identified and initiated. Training, coaching,
counseling, etc., are examples of corrective actions that help to improve
performance

30
 .
METHODS OF PERFORMANCE APPRAISAL
Several methods and techniques are used for evaluating employee
performance. These may be classified in to Traditional and Modern methods.
TRADITIONAL METHODS:
 Ranking Method – It is technique, evaluator assigns relative ranks to all
employees in the same work unit doing the same job. Employees are ranked from
the best to the poorest on the basis of overall performance. The relative passion
of an employee is reflected in the numerical rank. It is one of the simplest
methods. It is time saving and comparative evaluation technique of appraisal.
 Man-To-Man Comparison Method - In this method, certain factors are selected
for the purpose of analysis and the rater for each factor designs a scale. A scale
of man is also created for each selected for each factor. Then each man to be
rated is compared with the man in the scale, and certain scores are awarded to
him. In other words, a whole man is compared to a “key man” in respect of one
factor at a time. This method is used in job evaluation and is known as the factor
comparison method.
 Paired Comparison Method - This is a modified form of man to man ranking.
Herein, each employee is compared with all others in pairs on at a time. The
number of times an employee is judged better then other determines his rank.
Comparison is made on the basis of overall performance.
 Forced Distribution Method - In these techniques the rater appraises an
employee according to a pre-determined distribution scale. It is assumed that it is
desirable to rate only two factors by this method that is Job performance and
promotability. For this purpose a five poking performance scale is used without
any descriptive statement& employees are placed between two extremes of good
and bad performance.
 Graphic Rating Scales Method - It is a numerical scale indicating different
degrees of a particular train. The rater is given a printed form for each employee
to be rated. The form contains several characteristics relating to the personality
and performance of employee. Intelligence, attitude, quality of world, leadership
skills judgment, etc. are some use characteristics. This method is widely used as it
is easy to understand. It allows a statistical tabulation of scores and, a ready

31
 comparison of scores among the employees is possible. The approach is multi-
dimensional as several significant dimensions of the job can be considered in
evaluation.
 Critical Incident Method - In this method the superior keeps a written record or
critical (either good or bad) events and how different employees behaved during
such events. The rating of the employee depends on the positive or the negative
behaviors during these events. These critical incidents are identified after through
study of the job and discussions with the staff. This method helps to avoid vague
impressions and general remarks as the rating is based on actual records of
behavior.
 Group Appraisal Method - Under this method, a group of evaluators assess
employees. This group consists of the immediate supervisors of the employee,
other supervisors having close contact with the employer’s work, head of the
department and a personnel expert. The group determines the standards of
performance for the job, measures actual performance of an employee, analysis
the causes of poor performance and offers suggestions for improvements in future.
 Grading Method - under this method, the rater considers certain factors, and
marks them accordingly to a scale. The selected factor may be analytical ability,
co-operation, dependability self-expression, job knowledge. They may be grades
as ‘A’ – outstanding, ‘B’- very good,’ C’-good/average, ‘D’-fair, ‘E’- poor. The
actual performance of an employee is then compared with these grade definitions
and he is allotted the grade which best described his performance.
 Free Essay Method - In this method, the supervisor makes a free form, open-
ended appraisal of an employee in his own words and puts down his impression
about the employee. The description is always as factual and concrete as possible.
 Field review method - In this method, a trainer employee from the personnel
department interviews line supervisors to evaluate respective subordinates. The
supervisor is required to give his opinion about the progress of his subordinates
and his plan of action in cases requiring for consideration.
The traditional methods given above focus on the traits of an employee than an his
job performance , In the absence of predefined performance criteria or standards ,
the personal bias or subjectivity of the evaluator affects the ratings . This approach
caused the following responses:

32
 The very nature of the appraisal system led to criticism.
 Criticism exercised a negative impact on goal attainment.
 Criticism increased antagonism and defensiveness among employees resulting in
inferior performance.
 Managers generally are not qualified to assess personality traits.
 Some managers discourage good performances by over emphasizing
shortcomings and almost neglecting good work.
In order to overcome these weaknesses some new techniques of performances
appraisal have been developed.
MODERN METHODS:
 Assessments Center Method - An assessments center is a group employee drawn
from different work units. These employees work together on assignments similar
to the one they would be handlings when promoted. The most important feature of
the assessments center is job-related simulations. Evaluators observe and rank the
performances of all participants. This group evaluates all employees are both
individually and collectively by using simulations techniques like role- playing,
business games and in-basket exercises? Employees are evaluated on the basis of
job related characteristics considered important for job success. The evaluators
prepare a summary report and feedback is administered on a face-to-face basis to
the employees who ask for it. An assessment center generally measures
interpersonal skills, communicating ability to plan and organize, etc. Assessments
centers are not only methods of appraisal but help to determine training and
development needs of employees and provide data for human resource planning.
 Human Resource Accounting Method - Human resource are a valuable asset for
any organization. This asset can be valued in terms of money. When competent
and well-trained employees leave an organization the human asset ids decreased
and vice versa. Under this method performance is judged in terms of costs and
contributions of employees. Costs of human resources consist of expenditure on
human resource planning, recruitment, selection, induction, training, compensation,
etc. Contribution of human resources is the money value of labor productivity or
value added by human resources. Difference between cost and contribution will
reflect the performance of employees. This method is still in the transitory stage
and is, therefore, not popular at present.

33
  Behavioral Anchored Rating Scales (Bars) - This method combines graphic
rating with critical incidents method. BARS are descriptions of various degrees of
behavior relating to specific performance dimensions. Critical areas of job
performance and the most effective behavior for getting results are determined in
advance. The rater records the observable job behavior of an employee and
compares these observations with BARS. In this way an employee’s actual
behavior is judged against the desired behavior. This steps involved are : -
 Assign Scales To Incidents - The second group rates each incident on a 7 or 9
point scale. Rating is done on the basis of how well the behavior described in the
incident represents the performance on the appropriate dimensions. Means
(average) and standards deviations are then calculated for the scale values assigned
to each incident.
 Develop Final Instrument - A subset of the incidents that meets both the
retranslation and standard deviation criteria is used as a behavioral anchor for the
final performance dimensions. A final BARS instrument typically comprises a
series of vertical scales that are endorsed by the include incidents. Each incident is
positioned on the scale according to its mean value.
 360 Degrees Performance Appraisal – This is a new concept in performance
appraisal, where the feedback is collected from all around –the employee, the
superior, the subordinates, the peer group, and the customers. The evaluation is
very comprehensive in terms of the employee’s skills, abilities, styles, and job-
related competencies. This system has the following advantages:
a) Higher validity and reliability of the evaluation.
b) Self evaluation by the employees gets compared with the
perception of others.
c) Helps in maximizing employee potential in the face of challenges.

STEPS FOLLOWED BY LANCO IN MAKING APPRAISAL SUCCESSFUL

 Existence of an atmosphere of confidence and trust.

 The results of performance rather than personality traits should be given due
weight.
 The supervisor should analyze the strengths and weaknesses of the employee
and advise him.

34
 The appraisal programmed should be less time-consuming and less costly
 The results of appraisal should be immediately communicated to the
employee.
 A post appraisal interview should be arranged.
 Training can be used to improve the standards of performance appraisal.
 The right appraisal tools should be chosen to minimize arising problem.

35
 DATA ANALYSIS AND INTERPRETATION

1. What type of the performance appraisal system is existed in the organization?

A) Confidential report B) EPRF C) DOPA

TABLE – I

S. No Type of appraisal system No. of Employees (%)

1 Confidential report 70
2 EPRF 20
3 DOPA 10

CHART - I

80
70
70
No. of Employees (%)

60
50
40
30
20
20
10
10
0
Confidential report EPRF DOPA
Type of Appraisal System

INTERPRETATION
The above table represents performance appraisal system effects on the
organizations development. 70% of the employees say that confidential report, 20%of
the employees say EPRF (employee performance appraisal review form) and 10% of
the employees say DOPA (development oriented performance appraisal) for this
question.
Here the employees said that the better performance appraisal system is
required for better organization development.

36
2. Performance appraisal is very much necessary to efficient functioning of the
organization.
a) Very much necessary b) some what necessary c) not at all necessary

TABLE - II
S. No Responses No. of Employees (%)

1 Very much necessary 70

2 Somewhat necessary 15
3 Not at all necessary 15

CHART – II
80
70
70
No. of Employees (%)

60
50
40
30
20 15 15
10
0
Very much necessary Somewhat necessary Not at all necessary
Responses

INTERPRETATION
The above table performance appraisal system is necessary for efficient
functioning of the organization or not 70% of the employees say that very much
necessary,15% employees say that somewhat necessary,15%employees say that not
at all necessary.

37
3. Objective of performance appraisal
a) To improve job satisfaction b) To prevent grievance
c) To assist in career planning d) Assist management in promotion, transfer
& development e) Reveal areas where training is needed

TABLE - III

S.No Objective of performance appraisal No. of Employees (%)

1 To improve job satisfaction 50
2 To prevent grievance 15
3 To assist in career planning 15
4 Assist management in promotion, transfer & 20
development

CHART - III
60
50
No. of Employees(%)

50
40
30
20
20 15 15
10
0
Job Satisfaction Prevent Career Planning Promotions..
Grievance
Objectives of Performance Appraisal

INTERPRETATION
The above table represents performance appraisal system is to improve job
satisfaction 50%, to prevent grievance 15%, to assist in career planning 10%, assist
management in promotion, transfer & development 10% and Reveal areas where
training is needed 15%.

38
4. Is the self-evaluation forms self- sufficient?
a) Very much sufficient b) Moderately sufficient c) Not at all sufficient

TABLE IV
S.No Self Evaluation No. of Employees (%)
1 Very much sufficient 65
2 Moderately sufficient 20
3 Not at all sufficient 15

CHART-IV

70 65

60
No. of Employees (%)

50

40

30
20
20 15

10

0
Very much sufficient Moderately sufficient Not at all sufficient
Self Evaluation

INTERPRETATION
The above table represents performance appraisal system is the self –
evaluation forms or in the self sufficient 65% of the employees say that very much
sufficient 20% of the employees say that moderately sufficient,15% of the employees
are not at all sufficient.

39
5. Performance appraisal system is strongly influential in determining training needs
A. Strongly influential B. Somewhat influential C. Not at all influential

TABLE V
Influence of appraisal system on training No. of Employees (%)
S.No

1 Strongly influential 65

2 Somewhat influential 25

3 Not at all influential 10

CHART(V)
70 65

60
No. of Employees (%)

50

40

30 25

20
10
10

0
Strongly influential Somewhat influential Not at all influential
Influence of Appraisal System on Training

INTERPRETATION
The above tabular format explains the how far the performance appraisal system
influential in determining training needs in assessing competency of employees. Here, 65%
employees strongly influential, above 25% employees some what influential. On the basis of this
chart we can observe that performance appraisal system helps that the performance appraisal
system influential in determining training needs or not.

40
6. Performance appraisal system covers all aspects of the job
A) Yes B) No
TABLE VI

S. No System covers all aspects No. of Employees (%)

1 Yes 85

2 No 15

CHART(VI)

90 85
80
No. of Employees (%)

70
60
50
40
30
20 15
10
0
Yes No
System Covers all Aspects

INTERPRETATION
The above tabulation format shows that the performance appraisal system covers all aspects of
the job or not 85% of the employees are say that yes,and15%of the employees say that no.

41
7. The present performance appraisal system is not being evaluated perfectly
A) Yes B) No
TABLE VII
Evaluation of system is not No. of Employees (%)
S.No
perfect
1 Yes 25
2 No 75

CHART(VII)

80 75
70
No. of Employees (%)

60
50
40
30 25
20
10
0
Yes No
Evaluation System is Not Perferct

INTERPRETATION
The above tabulation format shows that the majority of 25% respondents say yes to the
above statement and 75% expressed No to the given statement.
Employees said yes means in this organization every employee is given an
opportunity that participate in their appraisal.

42
8. The present performance appraisal system is strongly influential in keeping high
motivational
A) Strongly influential B) Somewhat influential
C) Not at all influential
TABLE VIII

S. No System on motivation No. of Employees (%)

1 Strongly influential 75
2 Some what influential 20
3 Not at all influential 5

CHART(VIII)

80 75
70
No. of Employees (%)

60
50
40
30
20
20
10 5
0
Strongly influential Some what influential Not at all influential
System on Motivation

INTERPRETATION
The above tables shows that 75% respondents strongly influential,20 % somewhat
influential and remaining 5% respondent not at all influential.

43
9. Merit and Seniority are the principles for promotion, increments (or) incentives
A)Merit B)Seniority C)Both

TABLE 1X
S.No Principle incentives No. of Employees (%)
1 Merit 10
2 Seniority 15
3 Both 75
CHART(IX)
80 75
70
No. of Employees (%)

60
50
40
30
20 15
10
10
0
Merit Seniority Both
Principle Incentives

INTERPRETATION
The tabular format explains about whether GENTING LANCO KONDAPALLI POWER
PLANT gives promotion by Merit or seniority or both 10% respondents say that by Merit and
15% say that Seniority,75% respondents by both.

44
10. Present appraisal system is help full in achieving organizational goals and objectives
A) Yes B) No

TABLE X

Efficient system on organizational No. of Employees (%)

S. No
goals
1 Yes 80
2 No 20

CHART(X)

90
80
80
No. of Employees (%)

70
60
50
40
30
20
20
10
0
Yes No
System on Organisation Goals

INTERPRETATION
The above tabulation format shows that 80% employees think that performance
appraisal system and help full in achieving goals objectives.
And 20% employees tick no option .

45
11. How far is the performance appraisal system armed with an efficient feedback system
to assist you in improving performance.
A) Excellent B) Very good C) Good D) Fair

TABLE X1

Efficient feedback system in No. of Employees (%)

S.No
improving performance
1 Excellent 20
2 Very good 65
3 Good 10
4 Fair 5

CHART(XI)
70 65

60
No. of Employeees (%)

50

40

30
20
20
10
10 5

0
Excellent Very good Good Fair
Feedback System

INTERPRETATION
This diagram explains about that the performance appraisal system is to assist you in
improving or not 20% employees are agree excellent, 65% agreed as very good, 10% agreed as
good and 5% fair.

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12. Performance appraisal system helps to build a proper relation between superior and
subordinate
A) Yes B) No
Table XII

S.No Helpful to build proper No. of Employees (%)

relation
1 Yes 80
2 No 20

CHART(XII)

90
80
80
No. of Employees (%)

70
60
50
40
30
20
20
10
0
Yes No
Helpful to Build Relation

INTERPRETATION
The above table explains about the appraisal system at lanco 80% of employees say yes,
and 20% of employees say no, Basis on the above analysis whichever appraisal system helps to
build a proper relation between superior and subordinate

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 FINDINGS AND SUGGESTIONS
FINDINGS :
The following are the findings of the study:
 After the data analysis include that most of the employees are fully satisfied about their
organization.
 The organization is providing better working environment to the employees for doing
their jobs that’s why there are fully satisfied with their present job.
 About 60% of the respondents are strongly agreed that performance appraisal system
with respect to the job performance & potential for development.
 The entire respondents are agreed that the performance appraisal forms the basis for
promotions &salary increasing.
 About 90% of the respondents are feeling pride as an employees of that organization.
 The organization is using a best appraisal system for reducing their stress & strain of
employees.
 The type of system using in organization will help to know the strength & weakness of
employees.
 50% of employees feel present appraisal system is a motivation. Most of the employee
fully satisfied about their organization`s appraisal system.
 Discussion between the appraiser and appraise regarding the appraisal is not performed
seriously.
 Most appraisers lack proper training regarding the appraisal technique and in dealing
with post appraisal tools like counseling
 The honesty and sincerity or the superiors are clearly identified and well appreciated by
their subordinates.
 The leadership styles of the superiors also found as a major factor to guide their
subordinates for better performance.
 A performance appraisal system has become a routine affair and not much importance
given and interest shown towards their purpose.
 It is found that most of the employees felt, the performance appraisal system should be
given twice in a year.

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SUGGESTIONS:
The following are the suggestions given for improvement of performance appraisal in the
organization:
 Organization should try to conduct counseling and guidance to improve performance of
the employees, because lack of performance skills creates stress
 The organization should concentrate on the work environment for the employees from
time to time.
 The organization should arrange relaxation center. The emphasis on such center allows
individual experience parity of stress management techniques.
 The organization should conduct classes like yoga, meditation, +ve thinking which
reduces stress.
 Extra – curricular activities should be conducted.
 Use of counseling as a tool to improve performance which can help the employees
provided it is devoid of severe criticisms, suppression of domination.
 Appreciation for good performance and proper guidance for improvement is a must.
 Appraisal linked to promotions and increments will motivate the employee towards
word culture.
 As the appraisal is directly linked to promotions or career progressions of an employee
there should be transparency in discussing the appraisal report.
 Objective and fair assessment can induce seriousness towards appraisal and help
increase motivation among employees.
 It is suggested that the promotions should also be given based on their merit not only on
their seniority.
 The organization should also concentrate on the performance counseling for the
improvement of their employee performance.
 Enhancement or the employee knowledge regarding the performance evaluation is
necessary.
 The organization should give monitory or non-monetary benefits for outstanding
performance.
 Appreciation for good performance and proper guidance for improvement is a must.

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 CONCLUSION
Ultimately it is concluded that the organisation is a platform for the employees for
performing their skills, knowledge and capabilities etc to achieve the goals. As a system, the
performance management takes inputs from the employees in the form of skills ,knowledge and
activities etc ,and process these inputs through the performance management and finally give
outputs in the form of promotions, rewards, incentive and increments etc along with the
achievement if individual and organisational goals.

The appraisal system in GLK is excellent .It maintain proper mechanism for
appraising the performance of the employees. It conduct performance appraisal for providing the
annual increments, promotion system ,but it has some drew backs like the appraisal system
comes conflicts in certain situations due to the lack of proper communication.

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 BIBLIOGRAPHY
BOOKS:
 K.K AHUJA s “HUMAN RESOURCE MANAGEMENT”, Kalyani Publishers.
 ARUN MONAPPA and MIRZA s “PERSONNEL MANAGEMENT”, Tata Mc Graw-
Hill.
 ASWATHAPPA s “HUMAN RESOURCE AND PERSONNEL MANAGEMENT”
Tata Mc Graw-Hill
 P.SUBBA RAO s “HUMAN RESOURCE MANAGEMENT AND INDUSTRIAL
RELATIONS” , Himalaya Publishing House.
 V S P RAO and P.S NARAYANA “MANAGEMENT”, Premier Book Company, New
Delhi.
Journals:
 Human Resource Champions
 Tomorrow’s HR Management
 The Human Capital Edge
 Planning and Managing Human Resource.
 The HR Scorecard.
Websites:
www.lanco.com
www.lkp.com
www.gentinglanco.com

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 QUESTIONNAIRE ON PERFORMANCE APPRAISAL

Employee Name: Age:

Designation: Sex:

1. What type of the performance appraisal system exists in your organization?

a) Confidential report b) EPRF c) DOPA
2. Performance appraisal is necessary for efficient functioning of the organization.
a) Very much necessary b) somewhat necessary c) not all necessary
3. Objective of Performance Appraisal
a) To improve job satisfaction b) To prevent grievance c) To assist in career planning
d) Assist management in promotion, transfer & development e) Reveal areas where training is
needed
4. Is the self-evaluation forms self- sufficient?
a) Very much sufficient b) Moderately sufficient c) Not at all sufficient
5. Do you think the existing performance appraisal system adequately enables you to find out
the areas of furthers improvement?
a) Strongly agree b) Agree c) Neither agree nor disagree d)Strongly disagree
6. Do you think performance appraisal system covers all aspects of the job
a) Yes b) No
7. Do you think that you are perfectly being evaluated by the present performance appraisal
system
a) Yes b) No
8. How far is the present performance appraisal system influential in keeping high motivational
a) Strongly influential b) Somewhat influential c) Not at all influential
9. Which of the following appraisal system is suitable for your organization
a) Performance & Potential Appraisal b) Team Appraisal c) Self appraisal d) 360 Degree
Appraisal
10. Is the present appraisal system help full in achieving organizational goals and objectives?
a) Yes b) No
11. Give your opinion on the overall performance appraisal system followed in your
organization

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 a) Excellent b) Good c) Average d) Poor
12. Do you think there exist transparent performance appraisal system at Lanco
a) Yes b) No
13. How far is the performance appraisal system armed with an efficient feedback system to
assist you in improving performance?

a) Excellent b) Very good c) Good d) Fair

14. Do you think performance appraisal system helps to build a proper relation between superior
and subordinate?

a) Yes b) No

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