Professional Documents
Culture Documents
Project On Balco
Project On Balco
ON
At
BALCO
2007
DECLARATION
I hereby declare that all the data and information which this project contains is true
as per my knowledge.
During preparation of the project I was honest about the rules and regulation of
Balco and Business ethics. And I think no data of my project harms any reader of
my project directly or indirectly.
The personnel function in developing countries such as India has several distinct traits. It
cannot be compared with the personnel function of advance countries or with that of
under-developed countries though it has certain similarities with both. The element that
causes these differences is size, ownership pattern, and style of management, government
legislation and the socio-culture milieu prevailing in India. It is also necessary to point
out that there is no uniformity in the formulation and practice of personnel policies in the
country. These variations are caused by some of the factors indicated above as well as by
the difference in each organization’s philosophy and approach to its human resources.
An attempt has been made to systematically analyze and present relevant research data.
The changes that are taking place in existing or traditional personnel functions or
practices are due to the increased importance being given to functions, such as selection
or training, by organizations wanting to identify and utilize human resources as
efficiently as possible. There is now an increasing concern for productivity and better
utilization of human resources at the plant level in an increasingly competitive
environment. These changes that are more towards expanding the role of the personnel
function could also be, to some extent, attributed to behavioral science research into the
understanding of human behavior at the work place.
ACKNOWLEDGEMENT
I would like to express my gratitude towards all those who have contributed to this
project by providing guidance and information to me. Without their help I would
not been able to complete this project. I could not have worked out the idea into
reality and lots of hands have helped me to accomplish this work and hence I would
like to acknowledge them.
DIMAT SHRADDHA
ROY
RAIPUR
CONTENTS
Page No.
Chapter -1 Introduction
1.1 Conceptual Framework 1-27
Suggestions
Limitations
-Bibliography
-Appendix
Executive Summary
People generally come to work to do a good job. What stands in their way? There are a
variety of issues. An organization owes itself the ability to get as much from the minds of
its people as it possibly can. Developing an employee and providing a path that leads to
higher performance and individual development is often the difference between
organizational success or failure. Doing that in a way that is in alignment with the
organization’s goals is “How” this can be accomplished.
In today’s fast changing world employee appraisal and how to enhancing the
Performance of employee is one of the most important issue faced by the Human
Resource Development in analyzing and evaluating its employees as well as to retain
them. It also gives the employees a chance to look back on what they have been doing.
The employees who seek development may also seek opportunity. It is easier for them to
help grow within their own organization that it is for them to switch organizations and
start new. Given development and room to grow, most employees will repay the
investment through their loyalty.
Here the objective of this project is to analyze the effectiveness of current employee
appraisal programme which includes employee career planning and employee
development strategies adopted by the BALCO and finding out the loopholes in actual
practice.
The methodology adopted was first of all finding what planning made by organization in
terms of employee appraisal and enhancing their performance. A structured questionnaire
was prepared and certain GET’s and Executives were interviewed along with SBU Heads
and HR professionals. Open questions were also asked to them in order to get their
feedback and suggestion. Sampling was done on the basis of availability and
convenience. For the purpose a sample of 300 respondents were selected. In addition to
this I also interviewed those employees leaving the organization in this period. Their
response and suggestions were analyzed and consolidated to reach to the
recommendations.
The employee appraisal system in BALCO is up to the mark where as it compare to the
other manufacturing sector. The compensation given to the employees is best in the
industry and almost all employees are satisfied with that but the following area need more
concern subjectivity in performance appraisal not satisfactory, training and development
not adequate, no systematic job rotation, no mentoring system.
In the interview conducted it was revealed Performance appraisal system should need
improvement. Personal interview and 360° appraisal system should be introduced. Better
career path for the talented employees is inadequate. There is no description and also
there is existence of favoritism in the work place.
If these concerns are properly taken care of, then the performance of employee is
enhanced. BALCO should develop its employee career and develop them. Enhanced
Compulsory job rotation should be introduced up to 25% of employee. Training
evaluation should also be there. Role clarity must be brought in the organization by
having Job description for each employee, having properly defined reporting relationship
and clearly communicating the performance expectations.
CHAPTER ONE
INTRODUCTION
1.1 CONCEPTUAL FRAMEWORK
Human Resource are today universally acknowledged as the most valuable assets in any
organization, and it is largely due to this that enlightened management are increasingly
searching and researching for newer and better techniques of personnel management and
administration.
Performance Appraisal has acquired a new dimension as a result of the HRD movement.
Despites the increasing research done by behavioral scientists, man still remains a very
complex person, capable at the same time, however, of extremely high performance
levels given the proper environment and motivation. Rao defines HRD as a process that
continuously helps the employees in a planned way to acquire and sharpen capabilities
needed for present and future work, to help them discover their potential and to develop
an organization culture where collaboration and teamwork are valued. Performance
Appraisal plays a key role in achieving the objectives of HRD. It can be used for
performance planning and culture building. Appraisal can help in identifying
development areas and growth potential. It can also be used for performance reviews and
counseling. Effective appraisals should help in identifying strength and weakness of
employees so that subsequent training and development activities can be used to reinforce
strengths and overcome the weaknesses of the employees. Hence the appraisal is not
merely a tool to judge the performance of the employees in the previous year, but also an
opportunity to tap their potential and discover mechanisms to bring that potential the
surface.
In simple terms, Performance Appraisal may be understood as the assessment of an
individual’s performance in a systematic way, the performance being measured against
such factors as job knowledge, quality and quantity of output, initiative, leadership
abilities, supervision, dependability, co-operation, judgment, versatility, health, and the
like. Assessment should not be confined to past performance alone. Potentials of the
employee for future performance must also be assessed.
A formal definition of performance appraisal is: It is a systematic evaluation of the
individual with respect to his or her performance on the job and his or her potential
for development. A more comprehensive definition is: Performance Appraisal is a
formal, structured system of measuring and evaluating an employee’s job related
behaviors and outcomes to discover how and why the employee is presently
performing on the job and how the employee can perform more effectively in the
future so that the employee, organization, and society all benefit.
Formal appraisal of an individual’s performance began in the Wei dynasty (A.D. 221-
265) in China, where an Imperial Rater appraised the performance of members of the
official family. A formal appraisal program has been perceived to be equally important in
Indian business and industry, and a number of firms conduct it in one form or the other.
In industry, performance appraisal is a systematic evaluation of personnel by superiors or
others familiar with their performance because employers are interested in knowing about
employee performance. Employees also wish to know their position in the organization.
Appraisals are essential for making many administrative decissions: selection, training,
promotion, transfer, wage and salary administration etc. Performance Appraisal thus is a
systematic and objective way of judging the relative worth or ability of an employee in
performing his tasks well and those who are not and the reason for such performance.
In public enterprises, however, personnel management in the early years tends to follow
the government procedures, but for the last two decades or so we see managements
becoming increasingly aware of the necessity to professionalize personnel administration.
The diversity of procedures and techniques for performance appraisal, ranging from much
too prosaic too much too elaborate prevailing in the business and industrial
establishments is positive staggering.
Evaluation of employees is one of the most universal practices of management. It is
applied formally or informally to all employee-operatives, technical, professional and
executive. Many companies use formal plans primarily in connection with operative
employees. The success of formal plans of evaluation depends upon the case with which
they are planned, operated and controlled.
Competitive
Advantage
Ensuring Legal
Values and Compliance
Behaviour
Minimizing
Dissatisfaction
and Turnover
Improving Performance –
An effective appraisal system can contribute to competitive advantage by improving
employee job performance in two ways- by directing employee behavior towards
organizational goal and by monitoring that behavior to ensure that the goals are met.
APPRAISAL PROCESS
Each step in the process is crucial and is arranged logically. The process as shown in
figure is some what idealized. Many organizations make every effort to approximate the
ideal process, resulting in first-rate appraisal systems. Unfortunately, many other fails to
consider one or more of the steps and, therefore, have less effective appraisal system.
Objectives of
Performance Appraisal
Establish Job
Expectations
Design an
Appraisal Program
Appraise
Performance
Performance
Interview
Problem of criterion
Differentiating between individuals is easy provided one knows what aspects to take into
account. A very broad definition of criterion is “that refers to the evaluative standards
which measures a person’s performance, attitudes, etc.” At the lower levels of an
organization, there are specific jobs, and certain tangible and objective standards of
performance can be identified. Further up in the hierarchy, jobs become more complex
and clear-cut, tangible standards of performance are difficult to specify. Irrespective of
the level, by and large, most companies use eleven performance measures : quantity of
work, quality of work, waste and breakage, money earned, job knowledge, job tenure,
absenteeism, rate of advancement, self-judgment by supervisors. These measures can be
classified into three broad categories:
1. Personal Data
2. Production Data
3. Judgmental Data
Personal Data: This includes personal history, number of times one has been absent,
number of grievances, accidents, breakage, etc., all of which are often used to
differentiate between good and bad performers, they studied what personal variables
made them “good” or “bad” performers. However, there is little evidence to suggest that
personal data can predict job performance. It is extremely risky to use personal data as an
indicator of performance. In fact, several studies suggest that the relationship between
personal data measures and production measures is often very often very low. Thus, if
these factors are used to define job success they should be considered relevant criteria in
their own right, rather than simple substitutes for more direct measures of job
productivity.
Production Data: Rate and quality of work, and money earned, are direct measures of
performance. These can range from units produced per hour to money earned or lost.
Production data are useful for evaluating the performance of people only in some jobs
and at some levels. Staff jobs vis-à-vis line jobs, higher level jobs vis-à-vis lower level
ones, and performance in service organizations vis-à-vis production or engineering
organizations are difficult to evaluate, if production is the only thing to be considered .
Despites the fact that clear-cut output measures are available for some jobs; production
data are not the most frequently used measure of performance. They have been used less
extensively that can be expected. Initial studies on production as a measure of
performance suggest that the time period between measures can make a substantial
difference to the accuracy of the data. To get correct pictures of production and output,
several samples over a number of time periods should be taken.
Judgmental Data: These include self-judgment, judgment by peers and superiors, and
sometimes knowledge of the job. It is one of the most commonly used indicators of
performance, and probably the one most loaded with errors and problems. Most of the
problems arise because it is based on subjective assessment either by the individual, or by
another individual for him. It is almost impossible to objectify subjective judgments.
Merely giving two persons an answer to an essay test, and examining the reason for their
evaluation can gauge the difficulty of using this indicator.
3. Ranking System: One of the disadvantages of the rating system is that it permits
similar total scores for two or more individuals. The ranking system obviates this
problem. The rater simply ranks employees in order of merit, which determines
the employee’s ratings. Ranking can be determined either by looking at the total
individual and then ranking him in relation to others; or by first identifying
several relevant traits, ranking employees separately on each of these traits, and
then cumulating these trait rankings to arrive at the final employee ranking. The
ranking system is simple, natural and useful when the number of employee
evaluated by the same superior is small.
Two disadvantages of the ranking system are:
1. It is difficult to rank employees apart from and between the top and
bottom extremes; finer judgment has to be exercised here, which increases
chance of errors.
2. The task of ranking individuals is difficult when there are over 20 or 25
cases.
3. Forced Choice Method: The forced choice rating forms contains a series of
groups of statements and the rater checks how effectively the statements describes
each individual being evaluated. The rater is required to choose from several sets
of adjectives or phrases, which best characterize the officer and which are most
descriptive. This is also sometimes called a check list statement. The forced
choice method attempts to make performance evaluation more objective.
4. Critical Incident Method: This involves three steps: A list of noteworthy (good
or bad) on-the-job behavior, usually of specific instances, is first prepared. A
group of experts then assign scale values to them. A group of experts then assign
scale values to them, depending upon the degree of desirability for the job. The
third step is constructing a checklist that includes incidents that define “good” and
“bad” workers. Subsequently, superiors use these list for evaluating the worker.
This method has to identify key areas in which employees are weak or strong. It
emphases rating on objective evidence rather on the subjective evolution of
trades. Finally, the supervisor finds counseling easier since he knows his
subordinates weakness.
Bias in rating: The rater’s own biases and competence in rating can influence the
objective of performance appraisals. The halo effect, rater’s training, central tendency
errors, etc are examples of this “contamination”.
Although all appraisal methods are subject to validity and reliability tests there is very
little evidence on these two counts. Since most appraisal methods involve personal
judgment, it is difficult to ascertain their reliability and validity. Group appraisal methods
and rating by multiple judges are some techniques, which can make evaluations reliable
and valid. However there success is highly debatable.
Management By Objectives:
Whatever may be the nature and strength of resistance to the performance appraisal,
managements cannot relinquish this practice. Without employee appraisal, salary
increase, reassignments or promotions cannot be administered rationally. Each of these
areas has its specific problems and one of the solutions of modern times has been offered
by Peter Drunker’s concept of management by objectives (MBO).
MBO calls on the subordinate to set his short-term performance goals in consultation
with his superior, the subordinate appraises his own performance by evaluating it vis-à-
vis the goals. Before establishing a goal, the individual studies his job, assesses his
potentialities, and formulates some specific plans to reach the goals. The supervisor is not
the evaluator, but directs the goal setting process to ensure that it matches the objectives
of the organization.
MBO differs significantly from the traditional approach, for it shifts the emphasis from
“appraisal” to “analysis”. The subordinate is no longer examined by his superior for his
weaknesses, but examines himself to ascertain his strength and potential. It assumed that
the individual knows, or is capable of learning, more than any one else about his own
needs, strength and weaknesses.
Employees cannot bear criticism and discussion of their personality traits, mannerisms,
etc. In MBO, the accent is on performance – the actions related to the goals rather than to
the individual’s personality. The superior helps the subordinate reach his own goals by
specifying the steps.
One major problem that companies face in implementing MBO is in defining objectives.
In the same organization, the purpose of the worker is different from that of management.
Once this hurdle is overcome, implementing MBO becomes easier.
CHAPTER ONE
1.2 COMPANY PROFILE
Production of aluminum is second highest after steel. Has established it’s utility in every
field of our life. The entry requirement of aluminium was imported before 20 th century.
The bauxite mining was just started during this century. In 1912, Indian Aluminium
Company was found in Chennai to fabricate sheets from imported metal. Six years later,
another company was formed at Kolkata, which along with the Indian aluminium
company amalgamated with “ALCON GROUP in 1939.
The foundation of primary aluminium industry was laid in 1943 with the establishment of
2500 tones capacity aluminium smelter by Indian aluminium company (INDAL) at
Kerala with it’s operation based on imported aluminium, in 1944, aluminium corporation
of India setup an integrated aluminium plant at west Bengal second Smelter at Hirakund,
Orissa was setup in 1959 with the production capacity of 10000 tones per annum that was
raised to 20000 tones in 1961. Hindustan Aluminium corporation (Hindalco) was setup
it’s integrated aluminium complex with a capacity of 20000 tones of primary metal.
Madras aluminium Company (MALCO) was setup a Smelter unit in Tamilnadu in 1965.
Al these companies were in private sector management and operated with financial
holding & technological tie-ups with foreign companies.
Bharat Aluminium Company Limited (BALCO) is the first producer of aluminium in
public sector at an initial cost of Rs. 350 Crores & Authorized capital of Rs. 500 Crores.
From government of India with its registered office at New Delhi.
BALCO
Bharat Aluminium Co. Ltd. (BALCO) was incorporated in the year 1965 as a Public
Sector Undertaking (PSU). BALCO has several “firsts” to its credit. It is the first public
sector enterprise in the country, which started producing aluminium in 1975. In 1987-88,
a captive power plant of 270 MW was added to cater to the power requirement of the
unit. BALCO has been the first in the Indian Aluminium Industry to produce the Alloy
Rods, which is a Feedstock for all Aluminium Alloy Conductors, needed for today’s
power transmission lines. Till 2001, BALCO was a public sector enterprise owned 100%
by Government of India (GoI). In the year 2001, GoI divested 51% equity and
management control in favor of Sterlite Industries (I) Limited.
In the last 41 years, BALCO has built up a production capacity of 200,000 tonnes per
annum of alumina production capacity, 350,000 tonnes per annum of smelting capacity
and expanded its fabrication facility to include three Properzi Rod Mills, three pig casting
machines, integrated hot and cold rolling mills, and captive power plants of 810MW
capacity
Bharat Aluminium Company Ltd. (BALCO) has been closely associated with the Indian
aluminium industry, playing a pivotal role in making aluminium a leading metal with
myriad uses ranging from household and industrial requirements to aerospace
applications. BALCO is part of Vedanta Resources, a London listed metals and mining
major with Aluminium, Copper and Zinc operations in UK, India and Australia.
HISTORICAL BACKGROUND
A number of events & decision as well as lack of decision were responsible for the
situation confronting the new CMD in Oct. 1991.
Balco was conceived as an primary Producer of Aluminium inclusions ding ingots, wire
rods, extrusions & rolled products. The company was formed in 1965, & the project was
subsequently formulated.
The Alumina plant (2 lakhs TPA capacity) was set up with the technical Collaboration
with erstwhile USSR co. consequently until 1982, BALCO operated only one Pot line.
After considerable debate, the captive power plant was located adjacent to the NTPC
super thermal power station at KORBA in order to share some common infrastructure
facilities & not inside the premises of BALCO. The plant was procured form GEC-
ALSTOM and Commissioned in 1987. Mean while, a high-powered committee (copula)
visited BALCO in 1982 and ordered the supply power to BALCO from the super thermal
power station of NTPC to enable commissioning of the second Pot line.
Though all the units of the plant were not completely commissioned, manpower had been
recruited. Since its inception in 1965, BALCO has had all chief executives inducted from
outside the industry.
Until 1989, the demand for Aluminium was in excess of supply and Aluminium was a
controlled commodity. The company was unprepared for this, being the highest cost
Producer, with few value added products, little contact with end users and no experience
in selling.
VISION
“To achieve global standards of excellence in productivity and customer
satisfaction”
The Bharat Aluminium Co. Ltd. (BALCO) culture finds expression in its five core
values:
1. Commitment to excellence
2. Commitment and competence of the people
3. Customer satisfaction
4. Globally one of the lowest cost producers
5. Team work
At BALCO, there is a constant effort to improve in all areas of operations.
Plans are afoot to modernize the existing infrastructure to bring it on par with the best in
the world.
BALCO
B – Building on Teamwork
A – Ambitious Targets
L – Leadership Pursuits
C – Customer Delight
O – Operational Excellence
GENERAL INFORMATION
GEOGRAPHIC LOCATION
Capacity of 200,000 tpa of calcined Alumina, 350,000 tpa of aluminium metal and
810MW power plants.
Produced 219,485 tones of calcined Alumina and 173,743 tones of hot metal in FY 2005-
06 and sold 171,206 tones of aluminium.
Fully computerized Cold Rolling mill installed, which has precise temperature controls.
Hot Rolling Mill, widest 4 high hot rolling facility.
Received ISO 9001:2000 for manufacture and supply of calcined alumina, aluminium
ingots/billets, aluminium rods and aluminium rolled products.
MAJOR ACHIEVEMENTS OF BALCO AFTER DESINVESTMENT
Bauxite
Alumina
Smelters
Hot metal production has crossed 8000 MT during august, 2002 for the
first time after disinvestments.
Various efforts have been made to improve the productivity viz.
1. Total control on quality of raw material.
2. Strict shop floor discipline.
3. Improved house keeping.
4. Involvement of workmen in production processes.
Fabrication
Achieved the designed capacity in the wire rod mill for the first time.
Installation of new machine for better capacity.
Substantial reduction in “WIP”.
Significant efforts have been made to achieve better quality and
packaging.
Quality
Information Technology
Power
Plant- I Plant-II 810 MW Enabling Marketing
1.15 LTPA 2.50 LTPA
Logistics
Pot Room Commercial
Alumina CPP-I
270 MW Marketing
Cast House QA
Smelter
CPP-II Regions
540 MW IT
Carbon
Fabrication
HR
Mines
Finance
Project
Mainpat Kawardha
TOP 10 ALUMINA PRODUCING COUNTRIES
COUNTRY PERCENTAGE
Australia 31%
USA 10%
China 9%
Jamaica 7%
Brazil 7%
Russia 6%
India 6%
Venezula 3%
Ukraine 3%
Canada 3%
Others 15%
35% Australia
USA
30%
China
25%
Jamaica
20% Brazil
15% Russia
India
10%
Venezula
5% Ukraine
0% Canada
PERSENTAGE Others
60
50
NALCO
40 HINDALCO
UTKAL
30
INDAL
20 BALCO
MALCO
10 TOTAL
0
2003-2004 2004-2005 2005-2007
HR STRUCTURE OF BALCO
PRESIDENT HR
Mr. Pramod Suri
AVP HR
Mr. S.K Goyal
AM – HR AM – HR AM – HR AM – HR MFabrication
Ms. Suverna Mr. Prakhar Mr. Ranjeet Mr. P. C. Mr. H. K. Bhatia
Mishra Khandelwal Nath Panda
AM Alumina M – Alumina
Mr. Vishwas Mr. Kushas
Saxena
AM –Alumina
Ms. Nitasha Jha
HR INITIATIVES
1. Manpower Planning
Provide trained manpower to match with technological improvements.
Selectively induct new manpower with a view to correct the age mix and fill skill gaps
keeping in view the anticipated retirements.
Identify and develop people for succession planning, especially at HOD level, and
provide them suitable training in advance.
Reduce contract labour by mechanization of labour intensive operations and
redeployment of surplus manpower.
2. Training
Use planned job rotation for development of executives.
Continuously communicate the core values and other decisions of the management
through the in-house journals.
Develop modules on training to improve- interface management, leadership skills and
teamwork.
3. Performance
Review and modify performance appraisals and promotion policy.
Introduce a system of job definition of executives in terms of expected results
Review and revise the reward systems to provide more transparent link with
performance.
CHAPTER TWO
PERFORMANCE APPRAISAL SYSTEM IN BALCO
PERFORMANCE APPRAISAL:
Evaluation of performance, merit rating, or annual review... The idea of a merit rating is
alluring. The sound of the words captivates the imagination: pay for what you get; get
what you pay for; motivate people to do their best, for their own good. The effect is
exactly the opposite of what the words promise. The performance appraisal will be used
as a tool to recognize and record the achievements, for rewards and promotions and for
the identification of training and development needs in BALCO. The performance
appraisal period will be April to March of the succeeding calendar year and the increment
will be released before April of the year concerned.
The appraisal forms should be sent to the respective heads of the department in February
by the HR Department for evaluation and recommendations. The completed forms will
be received by the HR department by First Week of March. The final consolidation of
assessments will be put up to the Unit Head for approval by the third week of March and
the individual letters of Increments Promotions will be issued on 1st April.
The form consists of the following parts
CHAPTER THREE
RESEARCH METHODOLGY
3.1 RESEARCH
During the research, researcher has considered following things according to her
convenience.
3.5 UNIVERSE
Sum total of all the units that confirms to some designated part of specification is called
universe.
Researcher while conducting research work has selected Bharat Aluminium Company as
universe.
3.6 SAMPLE
The sample is the representative unit of population. The researcher has taken the
employees as sample for this research. Since in this research the researcher has collected
the sample according to her own convenience. So the sample is convenient sample and
the sample size of the research is 300.
3.6.1 Size of the Sample
This refers to number of items to be selected from the universe to constitute a sample.
The size of the sample should neither be excessively large,
nor too small. It should be optimum. An optimum sample size is one, which fulfills the
requirement of efficiency, representativeness, reliability, and flexibility.
3.10.1 QUESTIONNAIRE
The term questionnaire refers to a self-administered process whereby the respondent
himself/herself reads the questions and records his/her answers without assistance of an
interviewer. Although the instrument is essentially question asking and data gathering
tool. A questionnaire is more structured and standardized. The questionnaire consists of a
number of questions printed or typed in a definite order on a form or a set of forms. This
method of data collection is quite popular in case of big enquiries.
Que.1 Are you aware of the performance appraisal system prevailing in BALCO?
100% 89%
80%
60%
40%
20% 8%
3%
0%
Yes No Confused
Awareness of Appraisal system
Series1 89% 8% 3%
Interpretation:- It has been concluded that at around 89% approx employees are aware
of the appraisal system in their organization and 3% among them are little confused about
the process and 8% of employees does not know about the process
Que.2 Does the appraisal system forms a two way participative process?
7% 2%
91%
Interpretation:-91% of the employees believe that the appraisal system is a two way
participative process and a ranking method but rest 7% partially agrees to it and 2%
totally disagrees.
18%
Yes
9%
No
To some extend
73%
Interpretation: During the research it was concluded that satisfaction level of appraisal
system was considerable and 73% of the employees were satisfied but yet few employees
were not satisfied.
Interpretation: In BALCO appraisal process takes place after every 6 months for
executives and it happens early for officers.
Que.7 Does performance appraisal assisted you in your personal growth?
Interpretation: Employees believe that appraisal helps them to have their personal
growth but still some more should be changed.
Que.8 Does performance appraisal helps to develop competency in your organization?
Developing competency
Yes 62%
No 8%
To some extent 30%
Interpretation: Through ranking system employees got cleared of their roles and
objectives.
Clearance of objectives
Yes 77%
No 5%
To some extent 18%
Que.13 Does the self-assessment form assist you to realize your strength and weakness?
Effectiveness of self appraisal form
Yes 69%
No 21%
Interpretation: Self appraisal forms has been proved to be beneficial to evaluate ones
own developmental areas.
Interpretation: The employees of BALCO are satisfied enough through the reward
system in their organization.
CHAPTER FIVE
FINDINGS, CONCLUSION AND SUGGESTIONS
The process of performance appraisal helps the employees and the management to know
the level of employee’s performance compared to the standard/predetermined level.
It was viewed that performance appraisal was useful to decide upon employees
promotion/transfer, salary determination and the like. It has become the basis of
employee development.
Performance appraisal indicates the level of desired performance level, level of actual
performance and the gap between the two.
Organizations are likely to develop performance-oriented cultures, in which high
performers are seen to receive extra rewards and lower performers receive lower rewards.
If an employee’s performance were 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 was given to the developmental possibilities of appraisal.
CONCLUSIONS:
Performance appraisals are an integral part of managing performance, and unmanaged
performance simply cannot be allowed to happen. The process of managing performance
is essentially one of their performances. It starts with the setting of performance
expectations and ends with sanction-rewards and penalties on appraised performance.
Relationship and mutual understanding develops more quickly with greater frequency of
meetings between manager and staff members.
SUGGESTIONS:
360-degree appraisal system can be introduced as a powerful developmental
method and quite different to traditional manager-superior appraisal and can stand
alone as developmental method.
Ensure that 360-degree appraisal method is introduced and applied from top-down
and not bottom up.
Staff members can be better prepared for the formal appraisal, giving better
results, and saving management time.
Training and development actions can be broken down into smaller programs,
increasing success rates and motivational effect as a result.
Performance appraisal should be used not only for giving performance-based
incentives but also to identify average and below average employees and train and
develop to make them good performers.
Appraisal should be done twice a year for executives.
Training need assessment should be done strictly and training should be given on
that basis because different employees have different training needs.
Employees should be motivated regularly by their superiors and SBU heads to
come up with their training needs.
Motivational training should be given to all employees at least in every quarter
and it should be made compulsory for each employee to attend it.
Appraising talent which involves exploring the actual results achieved by
employees within those areas where they’re held accountable and to examine the
level of skills or competencies deemed critical to current and future jobs and
organizational success. In relation to a talent management programme, certain
specific areas are important. For example, the appraisal will not only include an
examination of performance, but will also inevitably include a forecast of
potential, which is a prediction of how many job levels an employee can reach
within the organization based on their past or current performance approaches,
training or development needs, career preferences and actual and projected
competency levels. Here, scales are often used in reporting potential to attain
managerial or leadership skills, as well as in the delivery of organizational
objectives
360° Appraisal system should be used in place of the current system in which in
addition to the superiors, colleagues and subordinate all around the employee will
also appraise him. This will reduce the personal biases occurring due to superior
subordinate relationship. The details of appraisal report should be kept
confidential including the rating. Proper training should be provided to the
appraisers regarding the process and proper method of conducting performance
appraisal.
The company has recently started Global leadership program in which key
employees are exchanged in different companies of the group for a term of 1 or
more year which provide them international exposure and experience.
Individual development report of these key employees are made by the
management and SBU head based on his past performance and according to
his/her KRA future track record for the employee is planned.
For special achievements and extra effort CEO kitty (cash reward) is given to the
employees in order to motivate them further.
Key employees are sent abroad for training to enhance their skill and knowledge
on written bond of 1-3 years.
Rotate employees to provide them new challenges and new assignments.
Companies practicing off shoring need to provide new challenges and
opportunities for skills development through training or job rotation. It may
become the only reason your best employees stay with you.
For each employee Job description should be made in which duties and
responsibilities of the employee should be clearly mentioned. The Knowledge,
skills and abilities required to perform the work should be stated clearly.
Provide your best employees with challenging work, show consequences to those
employees who are underperforming and respond to employees' work-family
balance and other needs.
Reward Managers who help good employees grow within the company.
LIMITATIONS:
Due to some strict rules of the company, all documents cannot be accessed.
Due to the busy schedules of SBU Heads and employees, they are unable to
impart time to us.
Sometimes respondents were roaming from one plant to another so they are not
available to guide us.
Due to low awareness of worker they are unable to give proper view.
Due to poor communication level between employees and workers accurate
results cannot be founded.
APPENDIX
GOOD MORNING/AFTERNOON/EVENING sir/madams I am Shraddha Roy from
Disha Institute of Management and Technology, Raipur. Currently doing my summer
internship here in BALCO for the period of 2 months in the HR department and working
on project named Performance Appraisal System and its role in enhancing employee
performance at BALCO under the guidance of Mr Ajai Gera (Associate Manager-HR),
for this I would like to know your views on certain things.
Thank you, sir/ma’am for sparing time out of your busy schedule and improving me with
your valuable inputs.
BIBLIOGRAPHY
Websites:
www.google search.com
www.BALCOINDIA.com