A STUDY ON

PERFORMANCE APPRAISAL
IN VISAKHAPATNAM STEEL PLANT (RASTHRIYA ISPAT NIGAM LIMITED)

A Project report submitted to the Acharya Nagarjuna University in partial fulfillment of the Award of the Degree in

MASTER OF BUSINESS ADMINISTRATION

Submitted by

MR.K.S.R.KRISHNA
(REG NO : Y10BU25035) Under the Guidance of

SRI. KAUSHIK

M.B.A

ASST.PROFESSOR, P.N.C & K.R COLLEGE OF P.G CORSES

COLLEGE COURSES

P.N.C & K.R OF P.G

(AFFILIATED TO ACHARYA NAGARJUNA UNIVERSITY) DEPARTMENT OF MBA

NARASARAOPET

2009-2011

DECLARATION
I here by declare that this project report entitled A PROJECT ON PERFOMANCE APPRAISAL at VISAKHAPTNAM STEEL PLANT, submitted by me under the guidance of SRI.KAUSHIK, is of my own and has not been submitted to any other university of institute or published earlier.

Place: Narasaraopet Date: (k.s.r krishna)

CERTIFICATE
This is to certify that Mr. K.S.R.KRISHNA, a student of MBA, P.N.C & K.R COLLEGE OF P.G COURSES has done project work titled,

PERFORMANCE APPRAISAL STEEL PLANT, under my guidance.

IN VISAKHAPATNAM

PROJECT GUIDE
SIR.KAUSHIK M.B.A

HEAD OF THE DEPARTMENT

Dr. M.S.NARAYANA M.com. M.B.A.. M.phil., Ph.d.,

COMPANY CERTIFICATE

ACKNOWLEDGEMENT
I express my immense gratitude to the people who have contributed towards the successful completion of this project work at Visakhapatnam Steel Plant (VSP). I am extremely grateful and I wish to express my profound sense of gratitude with great Administration to Sri. K.RAJA Asst. Manager (HRD) and Students Training Coordinator in RINL Visakhapatnam Steel Plant (VSP) for allowing me to work in this department and providing required facilities through out my project work and for the valuable guidance bestowed by him . He has been a constant source of inspiration and motivation for the completion of this project work. I would like to extend my sincere thanks to MR. KAUSHIK My Guide I would like to extend my sincere thanks to G.ANAND Deputy Manager, HRD Group for her kind encouragement, care and directing me towards completion of my project. I would like to extend my deep gratitude to Sri. K . V. Rao .Asst. General Manager (HRD) Sri . M. Srinivas Asst. Executive (HRD) Who provided the facilities for the completion of this project work . I convey my thanks and special regards to all my family and friends without whose guidance I would have not been able to complete this project work successful. Place: Visakhapatnam Date : successful

( K.S.R.Krishna

CONTENTS

CHAPTER I INTRODUCTION CHAPTER - II INDUSTRIAL PROFILE - STEEL INDUSTRY

&
COMPANY PROFILE VISHAKAPATNAM STEEL PLANT CHAPTER III OBJECTIVES & METHODOLOGY CHAPTER IV A STUDY ON PERFORMANCE APPRAISAL AT VISHAKAPATNAM STEEL PLANT CHAPTER V FINDING ,SUGGESTIONS,SUMMARY AND CONCLUSION ANNEXURE QUESTIONNAIRE BIBLIOGRAPHY

CHAPTER I

INTRODUCTION:
PERFORMANCE APPRAISAL SYSTEM
HUMAN RESOURCE DEVELOPMENT It is well recognized every where that human competency development is essential prerequisite for any growth or development of the organization. Human resource development is a newly emerging field of study. Although development of human beings has been in existence in some from or the other since the beginning of civilization, a planned and systematic approach to HRD in the corporate sector emerged in the later half of the 20 th century. Many organizations have set up HRD Departments which symbolized the recognition of importance of employees competency development. CONCEPT OF HRD: HRD is the process of helping people to acquire competencies. It is an organized learning experience aimed at matching the organizational need for human resource with the individual need for career growth and development. In an organizational context HRD is a process by which the employees of an organization are helped in a continuous and planned way to: Acquire or sharpen capabilities require to perform various functions associated with their present or expected future roles. Develop their general capabilities so that may be able to discover their own inner potentialities and exploit them to full for their own and organizational development. To develop an organizational culture where superior-subordinate relationship, team work and collaboration among different submits are strong and contribute organizational wealth and; motivation and pride of the employees.

FEATURES OF HRD: Human Resources Development is planned any systematic approach to the development of the people. Human Resource Development is a continuous process of developing the competencies, motivation, dynamism and effectiveness of employees. Human Resource Development is an inter disciplinary concept. Human Resource Development has both micro and macro aspects. Human Resource Development is a process not merely a set of mechanisms and techniques OBJECTIVES OF HRD: To provide a comprehensive frame work and method for the development of human resource in an organization. To generate systematic information about human resource for purposes of man power planning, placement, succession planning and the like. To increase the capabilities of an organization to recruit, retain and motivate talented employees. To create a climate that enables every employee to discover, develop and use his/her capabilities to a fuller extent, in order to further both individual and organizational goals. NEED FOR HRD: Competent and motivated employees are essential for organizational survival growth and excellence. Over a period of time, an organization may achieve a saturation point in terms of its growth. Even to maintain such a saturation level of growth employee competencies need to be sharpened or developed. Thus, HRD is need by every organization that is interested in the fallowing activities.

Stability itself. Growth Diversifying Renewing itself to become more effective Improving its systems and services Change and becoming more dynamic Playing leadership roles

FUNCTIONS OF HRD DEPARTMENT: Develop a HR philosophy for the entire organization Keep inspiring the line managers to have a consistent desire to learn and develop. Constantly plan and design new method and systems of developing and strengthening the HRD climate. Be aware of the business/other goals of the organization and direct all their HRD effort to achieve these goals. Monitor effectively the implementation of various HRD subsystem/ mechanisms. Work with unions and associations and inspire them. Conduct human process research, organizational health surveys and renewal exercises regularly. Influence personnel policies by providing necessary inputs to the personnel department/top management. HRD MECHANISMS The following are the mechanisms of HRD Performance appraisal Potential appraisal and development Feedback and performance counseling

 Career planning Training Organizational development Rewards Employee welfare and quality of work life Human resources information system PERFORMANCE APPRISAL: Performance appraisal of some type is practiced on most organizations all over the world. A HRD oriented performance appraisal is used as a mechanism by supervisions to Understand the difficulties of their subordinates and try to remove their difficulties. Understand the strengths and weakness of their sub-ordinates and help the subordinates to realize these. Help the sub-ordinates to become aware of their positive contribution. Encourage sub-ordinates to accept more responsibilities and challenges. Help sub-ordinates to acquire new capabilities. Plan for effective utilization of talents of sub-ordinates.

FEEDBACK AND PERFORMANCE COUNSELLING Knowledge of ones strengths helps one to become more effective, to choose situations in which ones strengths are required and to avoid situations in which ones weaknesses could create problems. These also increase the satisfactions of individual.Often, people do not recognize their strength. Supervisions in an HRD system have the responsibility for ongoing observation and feedback to subordinates about their strengths and their weaknesses, as well as for guidance in improving performance capabilities.

CAREER PLANNING: The HRD philosophy is that people perform better when they feel and see meaning in what they are doing. In the HRD system, corporate growth plans are not kept secret dong-range plans for the organizations are made known to the employees. Employees are helped to prepare for change when ever such change is planned, in fact the employees help to facilitate the change. TRAINING: Training is linked with performance appraisal and career development. Employees generally are trained on the job or through special in house training programs. For some employees (including executive) outside training may be utilized to enhance, update to develop specific skill. This is especially valuable if the external training can provide expertise, equipments, or sharing of experience that is not available within the organization.In-house training programs are developed by in-house trainers or consultants hired for the task and periodic assessments are made of the training needs within needs, managers and employees who attend in-house or outside training events are also expected to submit proposals concerning any changes they would like to suggest on the basis of their new knowledge. The training received by employees is thus utilized by the organization. ORGANISATION DEVELOPMENT: The function includes research to ascertain the psychological health of the organization. This is generally accomplished by means of periodic employee surveys. Efforts are made to improve organizational health through various means in order to maintain a psychological climate that is conductive to productivity. The organizational development or systems experts also help any department or unit in the company that has problems such as absenteeism, low resistance to change.

REWARDS: Rewarding employees performance and behavior is important part of HRD. Appropriate rewards not only recognize and motivate employees, but also communicate the organization value to the employees. In HRD systems, innovations and use of capabilities are rewarded in order to encourage the acquisition and application, newsletter announcements, increase in salary bonus, special privileges and desired training rewards may be given to individuals as well as to teams, departments, main and other units within the organization. EMPLOYEE WELFARE AND QUALITY OF WORK LIFE: Employees at lower in the organization usually perform relatively monotonous tasks and have fewer opportunities for promotion or change. This is particularly true in developing countries. In order to maintain their work commitment and motivation, the organization must provide some welfare benefits such as medical insurance, disability insurance, holidays and vacation.Quality of work life programs generally focus on the environment with in the organization includes basic physical amenities such as food and beverage facilities. Recreation and aesthetic and psychological and motivational factors such as flexible work hours, freedom to suggest change or improvements, challenging work and varying degree of autonomy. INTRODUCTION: 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. TRENDS IN PERFORMANCE APPRAISAL: Item Terminology Purpose Application Factors rated Techniques Former Emphasis Merit-rating Determine wage increase, Promotion, transfer, lay off. For rank and file workers Personal traits Present Focus Performance appraisal Development of the individual, improved job performance. For managerial and technical personnel. Performance, result or critical

accomplishments. Rating scales with emphasis Mutual goal-setting, 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. The main characteristic of performance appraisal is as fallows: 1. Performance appraisal is the process consisting of series of steps. 2. It is the systematic examination of employees 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 purposes of performance appraisal are as fallows: 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.

DEFINITION:
Performance evaluation or performance appraisal is the process of assessing the performance and progress of an employee or of a group of employees on a given job and his potential for future development. Formal Definition, It is the systematic evaluation of the individual with respect to his/her performance on the job and his/her potential for development. According to Flippo, Performance Appraisal is the systematic, periodic and an impartial rating of an employees excellence in matters pertaining to his present job and his potential for a better job. CHARACTERISTICS 1. It is process of consisting of series of steps
2.

It is a scientific and objective study. Formal procedures are used in this study.

3. It is scientific and objective study. Formal procedures are used in this study.

4. It is an ongoing or continuous process there in the evaluations is arranged periodically according to a definite plan. 5. The main purpose of performance appraisal is to secure information necessary for making objective and correct decisions on employees. OBJECTIVES: 1. To provide feedback to employees so that they come to know where they stand and can improve their job performance. 2. To provide a valid data base for personnel decision concerning placements, pay, promotions, transfers, punishments, etc,. 3. To diagnose the strengths and weakness of individuals so as to identify further training needs. 4. To provide coaching, counseling, career planning and motivation to subordinates. 5. To develop positive superior subordinates relations and there by reduce grievances. Thus, performance appraisal aims at both judgmental and developmental efforts. USES: 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.

A competitive sprit is created and employees are motivated to improve their performance. 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.

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: 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 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 employers 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.

 Forced choice Distribution method - In this method, the rating elements are several sets of
pairs phrases or adjectives relating to job proficiency or personal qualification. The rater is asked to indicate which of the phrases is most and least descriptive of the employee.

Checklist method - In this method, series of questions are presented concerning an

employees behavior. Here rater does not evaluate employee performance; he supplies reports about it and the personnel department does the final rating

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 following responses : 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. of the evaluator affects the ratings . This approach caused the

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 welltrained 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. 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 employees actual behavior is judged against the desired behavior.

This steps involved are Identify critical incidents - Persons with knowledge of the identify job to be appraised describe specific examples of both effective and ineffective job behaviors. Select performance dimensions - The persons then cluster the behavioral incidents into a smaller set (usually 5-10) of performance dimensions. Retranslate the incidents - Another group of knowledgeable persons assign each incident to the dimension that it best describes. Incidents for which there is less than 75% agreement with the first group are not retranslated. 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. Appraisal by results or MBO (Management by Objectives) The concept of management by objectives was developed by Peter Drucker in 1954. Since then MBO has become an effective and operational technique of performance appraisal and a powerful philosophy of managing.

PROCESS OF MBO : Set organization goals - Goals of the organization in key areas of performance are laid down. These goals are defined in clear, precise and measurable terms. A through analysis of internal and external environment of the organization is made to set these goals. Defining performance targets - On the basis of organizational goals, performance standards for each employee are defined. Every subordinate writes down his own performance goals, which are work related, and career-oriented. His manager also writes down the goals he thinks the subordinate should strive for. The two then discuss them, reach an agreement and put the agreed goals in writing. Thus, employees at all levels are involved in goal setting. The goals are periodically reviewed and revised to keep them flexible and up-to-date. Performance reviews - Frequent performance reviews meetings between manager and subordinate are held. In these meeting progress is assessed, weaknesses and constrains are identified and steps to be taken to improve performance are decided. Subordinates actively participate in this process. This leads to self-control by the employee. Feedback - After every performance review feedback on performance is communicated to the employee so that he can regulate and improve upon his own performance. On the basis of performance review rewards are decided. New goals and performance targets are determined for the next period. ADVANTAGES : Ends means chain Role clarity Objective appraisal Motivation and commitment Management development

 Co-ordination LIMITATIONS: Difficulty in goal setting Problem of participation Lack of understanding Time-consuming and expensive Inflexibility

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 employees 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. ADVANTAGES: Ratings are likely to be accurate because these are done by experts. The method is more reliable and valid as it is job specific and identified observable and measurable behavior. Ratings are likely to be more acceptable due to employee participation The use of critical incidents is useful in providing feedback to the employee being rated.

LIMITATIONS: It is very time consuming and expensive to develop BARS for every job. Behaviors used are more activity oriented than results oriented.

SHORT COMINGS OF PERFORMANCE APPRAISAL:

The ideal approach to performance evaluation is that in which the evaluator is free from personal biases, prejudices, and idiosyncrasies. This is because when an evaluation is objective, it minimizes the dysfunctional behavioral of the evaluator, which may be detrimental to the achievement of organizational goals. The factors which impede objective evaluations are: The halo effect - The halo effect is a tendency to let the assessment of an individual one trait influence the evaluation of that person on other specific traits. There is this effect in appraisal when the appraiser assigns the same rating to all traits regardless of an employees actual performance on these traits. The halo effect refers to the tendency to rate an individual consistently high or low or average on the various traits, depending upon whether the raters overall impression of the individual is favorable or not. This means that the halo effect allows one characteristic, or occurrence (either good or bad) to influence the rating of all performance factors. The halo effect problem can be alleviated by: Providing a training programmer to the evaluators.

Restructuring the questions by requiring the evaluator to consider each question independently. Leniency or strictness tendency - Every evaluator has hiss own value system which acts as a standard against which he makes his appraisals. Relative to the true or actual performance an individual exhibits, some supervisors have a tendency to be liberal in their rating, that is they consistently assign high values to their employees, while at other times they may have a tendency to assign consistently low rating. latter The former tendency is known as positive leniency error, while the as negative leniency error. Both these trends usually arise from varying

standards of performance observed by supervisors and from different interpretations of what they evaluate in employee performance. The tendency can be avoided by

holding meeting or training sessions for raters so that they may understand what is requ9red of them in rating. The central tendency problem - It is the most commonly found error. It assigns average ratings to all the employees with a view to avoiding commitment or involvement; or when the rater is in doubt or has inadequate information or lack of knowledge about the behavior of the employee, or when he does not have much time at his disposal. The ranking tools discussed earlier are aimed at avoiding this problem. Similarity error - This type of error occurs when the evaluator rates other people in the same way he perceives himself. This error also washes out if the same evaluator appraises all the people in the organization. Miscellaneous biases - Bias against employees on ground of sex, race religion or position is also a common error in rating. For example , a higher rating may be given to a senior employee. The rater may also be influenced by organizational influence and give higher rating to those holding higher positions. Social differentiation - Rating is sometimes impeded by the evaluators style of behavior. Pious has classified raters as high differentiations- that is using most of the scale; or low differentiators-that is, using a limited range of the scale. Low differentiators tend to ignore or suppress differences, perceiving the universe as more uniform than it really is. High differentiators, on the other hand, tend to utilize all available information to the utmost extent and thus are better able to perceptually deny anomalies and contradictions than low differentiators. Social differentiation makes evaluations using trait criteria unreliable. Spill Over Effect - This type of error occurs when past performance rating influences the current rating.

STEPS FOR MAKING APPRAISAL SUCCESSFUL Existence of an atmosphere of confidence and trust. The results of performance rather than personality traits should be given him. 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. due weight.

The supervisor should analyze the strengths and weaknesses of the employee and advise

CHAPTER II

INTRODUCTION TO STEEL INDUSTRY IN INDIA

STEEL INDUSTRY: Steel industry is the back bone of all industrial commercial activities. Realizing these countries planners have been formulating and updating annual plans for production of iron and steel. In this context a number of steel plants were setup. The steel industry plays a vital role in the growth of nations economy. Steel is such a versatile commodity that every object we see in our day to day life has used steel either directly or indirectly in its product. To mention a few it is used for such small items as nails, pins, needles etc., agriculture implements boilers, ship fabrication, railway materials, automobile parts, etc. to have machine structure. The great investment that has gone into the fundamental research in iron and steel technology has helped both directly and indirectly in many modern fields of todays science and technology. It would have been very painful to imagine the fate of todays civilization if steel has not been there. Steel is versatile and indispensable item. The versatility steel has not been there. Steel is versatile and indispensable item. The versatility steel can be traced mainly of three reasons. It is only metallic item, which can be continently and economically produced, in large quantities. It has got very good strength coupled with density and malleability. Its properties can be changed over a wide range. It alloys easily with many of the common element. INDIAS STEEL SCENARIO: Indian steel industry has always remained isolated and protected by government, where the steel industry was never expected to generate profit from business, but was expected to provide employment to the unemployed. Presently India is operating with open-hearth furnaces. The existing equipment, energy and labor in Indian steel industry are much low than developed countries.Indian steel industry generates a significant amount of waste materials, which can cause

environmental problems. The four aspects of Waste Management namely- residue reprocess, recycle and recovery do not hold much ground in the Indian steel industry. The Indian companies cannot spend more for pollution control. The energy consumption per tone is 50-100% higher than that of the international norms. The Indian steel industries have developed a bit in the recent years. The production is growing on properly. Many techniques are being implemented in the steel industries. The countrys aim is to sell quality steel. The government is also helping the steel industries in this basis. The apparent consumption of steel is shown below. The development of steel industry in India should be viewed in conjunction with the type and system of government that had been ruling the country. The production of steel in significant quality started after 1990. The growth of steel industry can be conveniently started by dividing the period into pre and post independent era. In the period of pre independence steel production was 1.5 million tones per year, which was raised to 9.0 million tones of target by the seventies. This is the present of the bold steps taken by the government to develop this sector. WORLDS DEMAND FOR STEEL: The total demand for steel in world is expected to grow at an annual rate of 1.7% between 1935 and 2000 A.D. as per the study concerned by china economists. According to their estimation total demand in advanced industrial countries on a whole is expected to grow at 0.6% annual rate following a 2.2% rate between 1974 to 1984. steel demand is less developed countries on a whole is expected to grow at a 5.5% annual rate up to 2000 following a 3.1 annual growth rate between 184-1994. Within the controlling plant economy the Eastern Europe erstwhile USSR region may have 0.3% annual steel demand growth. Steel demand in china, North Korea region would grow at 4.0 annual rates up to the end of this century at a 7.5% per annual growth during 1974-1980. HIGHLIGHTS OF PRESENT STEEL SCENARIO: The world steel shows a low growth demand. There is a threat to steel industry from competitive products like plastics, aluminum, etc.

Developed countries slowly reduced the production of steel. Developing countries like China are planning to produce steel as much large quantity then of present output of 80 Mt. per annum.

India consciously and strategically decides to invest into steel production. Preference is given to superior quality products and high value item production. Customer oriented approach in view of product oriented approach. Emergence of new technology like scraps preheating.

GROWTH OF STEEL INDUSTRY The growth in a chronological order is depicted below:

S.No YEAR 1 2 3 4 5 6 7 8 1830 1874 1899 1906 1911 1918 1940 1951-1956

GROWTH Osier Marshall heathler constructed the first manufacturing plant at port-motor in Madras presidency. James erskin founded the Bengal frame works. Jamshediji TATA initiated the scheme for an integrated steel plant. Formation of TISCO. TISCO started production. TISCO was founded. Formation of Mysore iron and steel initiated at Bhadravathi in Karnataka. First five-year plan The Hindustan steel limited (HSL) was born in the year 1954 with decision of setting up three plants each with 1 million tones in got steel per year at Rourkela, Bhilai, Durgapur. TISCO started its expansion program. Second five-year plan A bold decision was taken up to

1956-1961

increase the ingot steel output in India to 6 million tones per year and its production at Rourkela, Bhilai and Durgapur steel plant started. 10 11 12 13 1961-1966 1964 1966-1969 1969-1974 Third five-year plan During the plan the three steel plants under HSL, TISCO & TISCO were expanded* Bokaro steel plant came into exiatence. Recession period Till the expansion programmes were actively existed during this period. Fourth five-year plan Salem steel plant started. Licenses were given for setting up of many mini steel plants and rerolling mills government of India. Plants in south are each in Visakhapatanam and Karnataka. SAIL was formed during this period on 24th January 1973 Fifth five-year plan The idea of setting up fifth integrated steel plant, the first re-based plant at Visakhapatanam took a definite shape. At the end of the fifth five year plan the totaled installed capacity from six integrated plants was up to 10.6 million tons. Annual plan. The Erstwhile soviet union agreed to help in setting up the Visakhapatanam steel plant. Sixth five-year plan Work on Visakhapatanam steel plant started with a big bang and top priority was accorded to start the plant. Schemes for modernization of Bhilai steel plant, Rourkela steel plant, Durgapur steel plant and TISCO were initiated. Capacity at the end of sixth five-year plan from six integrated plants stood 11.50 million tones. Seventh five-year plan Expansion works at Bhilai and Bokaro steel plant completed. Progress of Visakhapatanam steel plant picked up and the nationalized concept has been introduced to commission the plant with 30 MT liquid steel capacities by 1990. Eigth five-year plan The visakhapatanam steel plant was commissioned in 1992. The cost of plant has become around 8755 crores. Visakhapatanam steel plant started the production and modernization of other steel plants is also duly engaged. Ninth five-year plan Restructuring of Visakhapatanam steel

14

1974-1979

15 16

1979-1980 1980-1985

17

1985-1991

18

1992-1997

19

1997-2002

plant and other public sector undertakings. STEEL PLANTS WITH FOREIGN COLLOBORATIONS:

S.No Plant
1 2 3 4 Rourkela Steel Plant Bhilai Steel Plant Durgapur Steel Plant Bokaro Steel Plant

Collaboration Capacity Finished Steel Products

West Germany Erstwhile USSR Britan Erstwhile USSR

of

S No
1

Plant
Rourkela Plant

Collaboration Capacity Finished Steel Products

Steel West Germany

of Annual Production
7,20,000 Tones

Bhilai Steel Plant

Erstwhile USSR

7,70,000 Tones

Durgapur Plant

Steel Britain

8,00,000 Tones

PROBLEMS OF STEEL PLANT INDUSTRY: LACK OF RAW MATERIALS: Non-availability of good quality raw material is another problem faced by iron and steel industry. The modern giant blast furnace needs high-grade iron ore and good metallurgical coal.

Further the industry is unable to get good quality coke and manganese is which the principal raw materials next to iron ore are unfortunately most of our resources of manganese ore are of poor quality besides the non availability of good quality raw material, regular supplies of raw materials are very much handicapped due to the absence of good transport facilities. Another problem faced by the steel industry related to the difficulty in getting zinc supplies for the continuous galvanizing line. LACK OF TECHNICAL PROBLEMS Because of technical limitations, Rourkela plant is unable to substitute aluminum of zinc for the production of galvanized sheet apart from source internal technical problems; our technology in the field of steel production is not a developed one when compared to other advanced countries. GOVERNMENT CONTROL AND PRICING POLICY Since 1941, India steel and iron industry was almost completely state regulated. Both prices and distribution of steel were under control of government. The Govt. decided to remove statutory control over the price and distribution of all, but a few categories with effect from 1st march 26, 1964 the Govt. supervise the steel and iron inducted according to the recommendation of Raja committee. But Raj committee in fixing the steel price didnt regulate the price of raw materials.

VISAKHAPATNAM STEEL PLANT A BRIEF PROFILE

INTRODUCTION: Steel occupies the foremost place amongst the materials in use today and pervades all walks of life. All the key discoveries of the human genius, for instance, steam engine, railway, means of communication and connection, auto mobile, aero plane and computers, are in one way or other, fastened together with steel and with its sagacious and multifarious application. Steel is versatile material with multitude of useful properties, making it indispensable for furthering and achieving continual growth of the economy-be it construction, manufacturing, infrastructure or consumables. The level of steel consumption has long been regarded as an index of industrialization and economic maturity attained by a country. Keeping in view the importance of steel, the fallowing integrated steel plants with foreign collaborations were set up in the public sector in the post-independence era. STEEL PLANT 1. Durgapur steel plant 2. Bhilai steel plant 3. Bokaro steel plant 4. Rourkela steel plant BACKGROUND: Visakhapatnam steel plant To meet the growing domestic needs of steel, government of India decided to set up an integrated steel plant at Visakhapatnam. An agreement was signed with erstwhile USSR in 1979 FOREIGN COLLABORATION British Erstwhile USSR Erstwhile USSR Germany

for co-operation in setting up 3.4 Mt integrated steel plant at Visakhapatnam. The foundation stone for the plant was laid by the then prime minister on 20th Jan 71. The project was estimated to cost Rs. 3897.28 Crs based on prices as on 4 th quarter of 1981. However, on completion of construction and commissioning of the whole plant in 1992, the cost escalated to around 8500 Cr. Unlike other integrated steel plants in India, Visakhapatnam Steel Plant is one of the most modern steel plants in the country. The plant was dedicated to the nation on 1st august 1992 by the Prime Minister, Sri. P.V.Narasimha Rao. New technology, large scale computerization and automation etc., are incorporated in the plant. To operate the plant at international levels and attain such labor productivity, the organizational man power has been rationalized. The plant has a capacity of producing 3.0 Mt of liquid steel and 2.656 Mt of saleable steel. VSP TECHNOLOGY : STATE OF ART Biggest Blast Furnaces in the country Bell less top charging system in blast Furnance. 100% slag granulation at the BF cast house. Suppressed combustion LD gas recovery system. 100% continuous casting of liquid steel. Tempore and Stelmor cooling process in LMMM & WRM. Extensive waste heat recovery systems. Comprehensive pollution control measures. 7m tall coke oven batteries with coke dry quenching.

MAJOR SOURCES OF RAW MATERIALS

Iron ore lumps & fines BF Lime Stone

Bailadilla, M.P Jaggayyapeta, A.P

SMS Lime Stone BF Dolomite SMS Dolomite Manganese Ore Boiler Coal Coking Coal Water Supply Power Supply

Jaisalmer, Rajasthan Dubai Madharam, A.P Chipuripalli, A.P Talcher, Orissa Australia Yeluru canal, Andhra Pradesh Captive power plant

MAJOR UNITS AT VSP:

DEPARTMENTS COKE OVENS SINTER PLANT BLAST FURNACE STEEL SHOP LMMM WRM MMSM

ANNUAL (000 T) 2,261 5,256 3,400

CAPACITY UNITS (3.0 MT STAGE) 3 Batteries each of 67 ovens and 7 Mts height 2 sinter machines of 312 Sqm grate area each 2 Furnaces of 3200 cu m volume each 3 LD Converters each of 150 Cum. Volume and six 4 strand bloom casters 4 Stand finishing Mill 2 x 10 stand finishing mill 6 Stand finishing Mill

MELT 3,000

710 850 850

MAIN PRODUCTS OF VSP

Steel Products
Angles Billets Channels Beams Squares Flats Rounds Re Bars Wire rods VISION

By Products
Nut Coke Coke dust Coal Tar Anthracene Oil HP Naphthalene Benzene Toulene Zylene Wash Oil

To be a continuously growing world-class company. We shall: Harness our growth potential and sustain profitable growth. Deliver high quality and cost competitive products and be the first choice of customers. To create an inspiring work environment to unleash the creative energy of people. Achieve excellence in enterprise management. Be a respected corporate citizen, ensure clean and green environment and develop vibrant communities around.

MISSION To attain 10 million tones liquid steel capacity through technological up gradation, operational efficiency and expansion, to produce steel at international standards of cost of quality, and to meet the aspirations of the stakeholders. OBJECTIVES Towards growth Expand the plant capacity to7 MT by 2011-2012 with the mission to attain 10.0 MT capacities in two subsequent phases. Towards profitability Achieve net profits from 2002-2003 with special emphasis on enhancement of production of value added steels and cost reduction. Towards employees Make RINL the employer of choice. Upgrade the skills and efficiencies of employees through training and development and maintain high levels of motivation and satisfaction. Towards customers Promote branding of products for quality and customer preference through customer relations management Towards suppliers Develop a reliable and strong supplier base and ensure effective supply chain. Towards quality Promote quality movement in all functions of the company through quality management system. Towards technology up gradation and productivity Continuously upgrade the technology and practice benchmarking to achieve international efficiency levels. Adopt latest developments in information and communication technology Towards knowledge management Become a knowledge based and knowledge sharing company. Towards safety, environment and society Continue efforts towards safety of employees, conservation of environment and be a good corporate citizen.

CORE VALUES Commitment Customer satisfaction Continuous improvement Concern of environment Creativity and innovation

QUALITY POLICY We, at Visakhapatnam steel plant, are committed to meet the needs and expectations of our customers and other interested parties. To accomplish this, we will Supply quality goods and services to customers delight. Achieve quality of the products by following systematic approach through planning, documented procedure and timely review of quality objectives. Continuously improve the quality of all materials, processes and products. Maintain an enabling environment which encourages team work and active involvement of all employees with their involvement.

HR POLICY We, at Visakhapatnam steel plant, believe that our employees are the most important resources. To realize the full potential of employees, the company is committed to: Provide work environment that makes the employees committed and motivated for maximizing productivity. Establish systems for maintaining transparency, fairness and equality in dealing with employees. Empower employees for enhancing commitment, responsibility and accountability. Encourage team work, creativity, innovativeness and high achievement orientation.

 HRD POLICY

Provide growth and opportunities for developing skill and knowledge. Ensure functioning of effective communication channels with employees.

We, at Visakhapatnam steel plant, are committed to create an organizational culture which nurtures employees potential for the prosperity of the organization. To accomplish this, we will Identify development needs of the employees on regular basis, provide the necessary training and continually evaluate and monitor the effectiveness of training so that the quality of training also upgraded. Provide inputs to the employees for developing their attitude towards work and for matching their competencies with the organizational requirements. Create an environment of learning and knowledge sharing by providing the means and facilities and also access to the relevant information and literature. Facilitate the employees for continuous development of their knowledge base, skills, efficiency, innovativeness, self-expression and behavior so that they contribute positively with commitment for the growth and prosperity of the organization while maintaining a high level of motivation and satisfaction. Prepare employees through appropriate development programs for taking up higher responsibilities in the organization. Fulfill social obligations by providing training to the students of educational institutions and to the trainees of other organizations.

MARKETING NETWORK OF VISAKHAPATNAM STEEL PLANT The products are being sold through 35 marketing centers all over the country with four stock yards at Mumbai, Kolkata, Chennai and Hyderabad. And in other places, consignment agencies have been contracted. POLLUTION CONTROL AND ENVIRONMENTAL PROTECTION Elaborate measures have been adapted to combat air and water pollution in Visakhapatnam steel plant. In order to be eco friendly Visakhapatnam steel plant has planted more than 3 million

trees in area of 35 square kilometers and incorporated various technologies at a cost of Rs.460 crores and control measures. ACHIEVEMENTS AND AWARDS OF VSP The efforts of VSP have been recognized in various forms. Some of the major awards received by VSP are in the area of energy conservation, environment protection, safety, Quality, Quality circles, Rajbhasha, MOU, sports related awards and a number of awards at the individual level. Some of the important awards received by VSP are indicated below: ISO 9002 for SMS and all the down stream units a unique distinction in the Indian steel industry. Indira Priya Darshini Vrishka Mitra Award: 1992-93 Nehru Memorial National Award for Pollution Control. 1992-93 & 1993-94. EEPC Export Excellence Award: 1994-95. CII (Southern Region) Energy conservation Award: 1995-96. Golden Peacock (1st Prize) National Quality Award-96IIM in the National Quality Competition 1996. Steel Ministers Trophy for Best Safety Performance 1996. Selected for World Quality Commitment Award- 1997 of J*BAN, Spain. Gold star award for excellent performance in Productivity. Udyog excellence gold medal award for excellence in Steel industry. Excellence award for outstanding performance in Productivity Management, Quality and innovation. Ispat Suraksha Puraskar (First Prize) for longest Accident free period 1991-94. Best Labor Management Award from Government of AP. SCOPE Award for best turnaround for 2001.

 Environment Excellence Award from Greentech Foundation for energy conservation in 2002. Best enterprise award from SCOPE, WIPS for 2001-02, besides. Best Enterprise Award from SCOPE for surpassing MOU targets 2003-04 ISTD Award for Best HR Practices 2002 Prime Ministers Trophy for Best Integrated Steel Plant 2002-03 World Quality Commitment International Star Award in the Gold category conferred by Business Initiative Directions, Paris Organizational Excellence Award for 2003-04 conferred by INSSAN

RINL has been bestowed with several national accolades in the year 2005-06 significant among them being :
National Energy Conservation Award for the 6th time in succession. National Award for Excellence in Water Management. ICWAI Award for excellence in Cost Management. Viswakharma Rashtriya Puraskar Award ( 6 out of 32 at the national level) FAPCCI best Industrial Productivity Award INSAAN National Award for Organisational Excellence Best CEO Award

The above awards at local regional and national level competitions in the area of quality circles and suggestion schemes etc. Total quality, latest technology, sophisticated equipment, up to date knowledge, high skills, cost consciousness, production with less cost and customer satisfaction have become the hallmark of VSP.

STATISTICAL INFORMATION
PRODUCTION PERFORMANCE (000 Tonnes)

S.No Year 1 2 3 4 5 6 7 8 1998-1999 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006

Hot Metal 2510 2943 3165 3485 3941 4055 3920 4153

Liquid Steel

Saleable Steel

Labour Productivity (Tonnes /manyear) 161 192 211 228 253 262 265 282

2225 2656 2909 3083 3356 3508 3560 3603

2193 2382 2507 2757 3056 3169 3173 3237

COMMERCIAL PERFORMANCE (RUPEES IN CRORES)

S.No 1 2 3 4 5 6 7

Year 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006

Sales Over 3,037 3,436 4,081 5,059 6,174 8,181 8,469

Turn Domestic Sales 2,677 3,122 3,710 4,433 5,406 7,933 8,026

Exports 295 322 371 626 768 248 443

FINANCIAL PERFORMANCE (RUPEES IN CRORES)

S.No 1 2 3 4 5 6 7 8

Year 1998-1999 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-06

Gross Margin 15 252 504 690 1049 2073 3271 2383

Cash Profit - 346 -130 153 400 915 2024 3260 2355

Net Profit -562 -291 -75 521 1547 2008 1251

EXPANSION PLAN :

Product
Hot Metal Charge Sinter Liquid Steel

Capacity (MT) Present Future

4.00 5.26 3.70 6.50 8.50 6.30

Additional Facilities envisaged

New BF with 3800 Cum Capacity New Sinter Plant of 400 Sq.M area SMS-2 with Two 50 CuM Converters, Two 6 Std Billet Casters & One 6 std Round Caster -New WRM of 600,000T Annum New SBM of 750,000 T/Annum New SM of 700,000 T/Annum Seamless Tube T/Annum plant of 300,000

Saleable Steel Wire Road Bars & Structural Seamless Pipes

3.34 1.05 1.95 -

5.72 1.65 3.40 0.30

CHAPTER III

OBJECTIVES:

The following are the specific objectives of my study.

To study the executive performance system and its effectiveness at VSP. To study, how performance appraisal system will work in a real life environment. To analyze the drive towards quality that is integrated into executive performance appraisal. To study, identify and suggest measures to improve effectiveness specifically from quality perspective. To analyze rationally the influence of emotional intelligence factor on performance appraisal system. To understand the gap between knowledge, skill and attitudes that exist and see how these can be filled by planned guidance and training. To study, how the performance appraisal is the base for all other HRD techniques like Training, Executive development, Counseling etc., To provide the basis for determination of merit, efficiency and suitability for the purpose of the promotion. To offer suggestion for the improvement of performance appraisal.

SCOPE OF THE STUDY:

To know and understand how Vishakapatnam Steel Plant is following HRD functions ,especially , Performance Appraisal to evaluate and council the performance of the employees for

further training and development, first of all we need to know the scope of this study. The following steps will guide us to know the scope of this study.

Visiting the plant Talk with the employees and ask them regarding Performance appraisal and other HRD techniques Participating in the meetings conducted by the guide in the organization Understand complete information regarding Human Resource Management, Human Resource Development, Performance Appraisal, Training and Development, Counseling, Reward systems, Industrial Relations in the organization.

METHODOLOGY: To get information about satisfaction level of employees from performance appraisal system and its effectiveness a stratified sample survey was conducted. For the present study of the data has collected by ways from the fallowing ways.

Questionnaire: The questionnaire was personally administrated with respondent in VSP it took nearly 20 minutes for each respondent to fill the questionnaire. The responses was given by the respondents were tabulated and a score sheet is prepared.

. LIMITATIONS: The study is how ever subjected to certain limitation. The time is a major limitation. The whole study was conducted with in a period of 2 months. The study does not cover non-executive some executive cadre and chair man and managing director. Study is quality perspective has only been qualitative the information gathered in this regard is mostly through information discussion. Only the existing system is studies and no attempt has been made to identify and complete new and dynamic performance system due to this constraints.

CHAPTER IV

PERFORMANCE APPRAISAL AT VISAKHAPATNAM STEEL PLANT LIMITED

COMPONENTS

When to appraise:

Performance appraisal across all levels at Visakhapatnam steel plant Limited is conducted once in a year. The Human resource department sends the appraisal forms to the concerned departments after duly filling in the staff details.

Who should appraise:

The immediate superior of the employee not below the Assistant Manager cadre shall be the Reporting Officer. In case the employee is directly working under the supervision of any officer higher, than he shall be the reporting officer. PROCEDURE: The Human Resource department prepares appraisal forms for each and every category of employee and at the start of the appraisal period; it sends these forms to the concerned departments after filling in the necessary details of the employee to be appraised which is called background information. The staff should have worked at least for a period of 6 months to be appraised by an officer. In case the appraise reports to more than one Reporting officer in an appraisal year, on transfer, promotion etc., The personnel department would forward the appraisal forms to Reporting officers concerned for the period, the appraise reports to them.. The assessment of an employee is primarily governed under a 2 - tier system that is assessment by the Reporting officer as well as by the Reviewing officer, where the assessment is subject to concurrence of the Consenting Authority, which will be final. The assessment done on the basis of certain attributes / factors which help in defining the job requirements of a particular job. Usually a 4 - point scale or a 10 - point scale for each factor is used for rating. Once the reporting officer gives his rating and comments if any, the same shall be put to the reviewing officer who after careful scrutiny of the appraisal will pass his remarks. After the Reviewing officers comments are given and duly signed by him, he can advice the reporting officer to discuss the appraisal with the employee or, in certain cases, may decide to discuss the appraisal with the employee himself but in the presence of the Reporting officer. The reporting officer after rating the employee on various attributes will give his remarks, which are communicated, to the reviewing officer. Later these are discussed with the

employee to know his reaction. After the discussion with the employee, the reporting officers give his final remarks and his suggestions for improvement of the employee performance, and forwards the appraisal to the reviewing officer for further comments later scrutinizes these. The complete appraisal report is then sent back to the personnel department in a confidential cover. The personnel department will then check the appraisal report for irregularities and any adverse entries against any of the employee made by the reporting officer will be communicated to the employee in a covering letter asking him/her to improve and a copy of the same will be placed in his/her personal life. Objectives of performance appraisal system at VSP : To appraise the individuals performance on the work assigned to him and qualities he is expected to show on the job in performing his tasks as expected by the organization through his supervising officers and to assess the potential for higher responsibilities. To generate inputs for promotions, confirmations, placements, training and personnel and developmental decisions in respect of the individual so appraised. To assess the professional, managerial, behavior and other training and development needs and provide information to the personnel/HRD department for the development decisions. Guide lines for Appraisers : The employee should be appraised for his present position. Judgment should be based on the entire review period & not on isolated incidents. Snap judgments should be avoided. Each factor under considerations should be appraised independently without being influenced by other factors. It is advisable that the individual being assessed should compare with others of the same rank employed on more or less similar type of work. Over rating as well as under rating diminishes the value of the assessment. Reason for given rating of the attribute should be well substantiated. A copy of adverse remarks communicated to the employee should be attached to the appraisal form.

PERFORMANCE FACTORS: Quantity out put Quality out put Cost control/ consciousness Job knowledge and skill House keeping/record keeping Team working and lateral coordination

POTENTIAL FACTORS Initiative Communication Commitment and sense of responsibility Management of human resources

For Technical/Non-Technical Staff (common attributes):

Job knowledge: Knowledge and understanding of job assigned. Quality of work: Thoroughness and accuracy of work done without mistakes, neatness and present ability should be considered. Quality of work: Amount of output vis - a vis the time taken. Initiative: Self - starting ability, resourcefulness and the ability to inspire confidence should be considered. Conduct: Ability to get on with other fellow employees. Regularity: Punctuality and regularity of attendance. Leadership: Ability to get work done by subordinates giving them clear guidance. Cost consciousness: Ability to foresee the resource requirement for any task and complete assignments with minimum waste. For Technical Staff only :

Safety Consciousness: Habits and work practices in respect of personal safety and safety of fellow employees.

Care of tool and equipment: Manner in which tool and equipment handling is done ensuring better tool life and less maintenance and damage.

For Non Technical Staff only : Dealing with others: Ability to appreciate others point of view and approach in dealing with customers, suppliers or any other outsiders in conformity with organizational requirement. HRD IN VISAKHAPATNAM STEEL PLANT (VSP) The VSP has a nice HRD department with talented and experienced staff. It is fallowing more or less all the above mentioned HRD mechanisms. The HRD staff is very friendly and cooperative. PHILOSOPHY OF HRD: Employees of the company are its greatest and most valuable resources. While on the hand HRD should appropriately harness employees potential for the attainment of company objectives on the other, the company as its corporate responsibility should create an enabling the best opportunity for self-expression all-round development and fulfillment. People are more than mere resource and therefore, it will be a person with all the respect and sensitivity that are all the respect and sensitivity that is warranted when employees are seen as more than mere instrumentality. HRD as a management function will be given a place of strategic priority along with function like production, maintenance, materials or finance in the overall scheme of management action in the company. HRD does not refer to training alone or it is just anew name for training. In RINL/VSP, HRD several management functions, for the development and growth of employees. HRD should eventually be a core philosophy of all management action and should not remain merely a report mental/sectional activity. All functional and divisional heads responsible for various activities of the company will the HRD spirit and suitably integrate HRD into their plans, decision and actions. HRD Objectives:

To provide initially a suitable match between employee competence levels and companys work requirements. To foster an appropriate climate and culture which nature. Employee competence and crease adequate motivational levels for the application of their abilities to assigned job/roles with required commitment.

To enable employees seek great identification with the company by infusing most management decisions and actions with the requisite care, concern and development approach.

To work towards enabling the employees and other stakeholders ask self fulfillment even work for the growth and property of the company. To utilization enable to employees and the organization to achieve its mission and objective and business goals through HRD.

HRD GROUP-KEY ACTIVITY: TQM and in-house programs. Nomination to external programs. Organization research and organization development. Membership with professional bodies. Performance appraisal for executives. Human resource information. In plant training for management studies. Lectures by eminent personalities. Corporate presentation. Interactions with professional academicians and consultants.

CHAPTER V

ANALYSIS AND INTERPRETATION

A sample of 60 respondents was selected at random from different departments like (Mines, Vigilance, Marketing, Finance, Training and Development center etc). A survey was conducted by way of questionnaire to find out whether the employees are satisfied with the existing system and their opinions on rated areas. The questionnaires are analyzed in both Table format and Graphically.

QUESTION NO: 1 Are you happy being associated with Visakhapatnam Steel Plant? TABLE:

SL. NO. 1. 2. 3. 4.

RATING Strongly disagree Disagree Agree Strongly Agree TOTAL

RESPONDENTS 0 0 15 45 60

PERCENTAGE 0 0 25 75 100

INTERPRETATION The above tabulation format shows that the majority of employees of VSP are happy to work with the organization.

BAR DIAGRAM

80 70 60 50 40 30 20 10 0 0 0 15 0 0 25 45

75

Strongly disagree Disagree Agree Strongly Agree

RESPONDENTS

PERCENTAGE

Page 1 of 74

QUESTION NO: 2 2. Objectives of the Performance Appraisal system (PASS) is clearly spelt out. TABLE: SL. NO. 1. 2. 3. 4. RATING Strongly Disagree Disagree Agree Strongly Agree TOTAL RESPONDENTS 0 0 15 45 60 PERCENTAGE 0 0 25 75 100

INTERPRETATION

The above table fully explains about the objectives of the performance Appraisal system are clearly spelt out . PIE DIAGRAM

Page 2 of 74

0% 0% 25% Strongly Disagree Disagree Agree Strongly Agree 75%

3. Performance Appraisal system helps in assessing competency? TABLE:

SL.NO. 1 2 3 4

RATING Strongly disagree Disagree Agree Strongly Agree TOTAL :

RESPONDENTS 0 0 50 10 60

PERCENTAGE 0 0 83.33 16.67 100

INTERPRETATION: The above tabular format explains the performance appraisal system helps in assessing competency of employees. Here, 83.33% employees agree the above statement PYRAMID DIAGRAM:

Page 3 of 74

90 80 70 60 50 40 30 20 10 0 Respondents 10 0 0 0 0 50

83.33

Strongly disagree Disagree Agree Strongly Agree 16.67

Percentage

4. Does the performance appraisal help in creating an effective work environment & create positive relationships? TABLE: SL.NO. 1 2 3 4 RATING Strongly disagree Disagree Agree Strongly Agree TOTAL : INTERPRETATION: The above table explains that performance appraisal helps in creating a effective work environment LINE DIAGRAM: RESPONDENTS 3 3 48 6 60 PERCENTAGE 5 5 80 10 100

Page 4 of 74

90 80 70 60 50 40 30 20 10 0 6 3 Respondents 10 5 Percentage 48
Strongly disagree Disagree Agree Strongly Agree

80

5. Performance appraisal system helps in knowing strengths & weaknesses of sub-ordinates. TABLE: SL.NO. 1 2 3 4 RATING Strongly disagree Disagree Agree Strongly Agree TOTAL : RESPONDENTS 0 0 45 15 60 PERCENTAGE 0 0 75 25 100

INTERPRETATION: The above tabular format explains that the performance appraisal system helps in knowing the strengths and weaknesses of sub-ordinates. DOUGHNUT DIAGRAM

Page 5 of 74

0% 25% 25% Strongly disagree Disagree Agree Strongly Agree 75% 75% 0%

6. According to your opinion, who is the Best person to conduct performance appraisal system? TABLE: SL.NO. 1 2 3 4 RATING Superiors Sub-ordinates Peers HOD TOTAL : RESPONDENTS 30 6 12 12 60 PERCENTAGE 50 10 20 20 100

INTERPRETATION: The above tabulation explains that superiors are the best persons to conduct performance appraisal. CYLINDER DIAGRAM

Page 6 of 74

50 45 40 35 30 25 20 15 10 5 0 Respondents 6 12 12 30

50

Superiors Sub-ordinates 20 20 Peers HOD 10

Percentage

Page 7 of 74

7. Which one do you think is the best performance appraisal system in your organization? TABLE:

SL.NO. 1

RATING Performance Potential appraisal &

RESPONDENTS 8

PERCENTAGE 13.33 10 56.67 20 100

2 3 4

Team appraisal Self Appraisal 360 Degree appraisal TOTAL :

6 34 12 60

INTERPRETATION: The above table explains about the best performance appraisal in Visakhapatnam Steel Plant is self appraisal system. PYRAMID DIAGRAM

360 Degree appraisal Self Appraisal Team appraisal Performanc e & Potential appraisal 0

1 2

20 34 56.67 Respondents Perc entage

6 1 0 81 3.33 20 40 60 80 1 00

8. What is your opinion on the present performance appraisal system in your organization? TABLE: Page 8 of 74

SL.NO. 1 2 3 4

RATING Excellent Good Moderate Bad TOTAL :

RESPONDENTS 10 34 15 1 60

PERCENTAGE 16.67 56.67 25 1.66 100

INTERPRETATION: This diagram explains that the present appraisal system is good. PIE DIAGRAM

Respondents

2% 25%

17%

Excellent Good Moderate Bad

56%

9. Do you feel that low performance is due to lack of skill? TABLE: SL.NO. 1 2 3 RATING Strongly disagree Disagree Agree RESPONDENTS 6 38 14 PERCENTAGE 10 63.33 23.33

Page 9 of 74

Strongly Agree TOTAL :

2 60

3.34 100

INTERPRETATION: The above tabular form explains that low performance is not due to lack of skill. BAR DIAGRAM

23.33 Perc entage 1 0 Agree Disagree Strongly disagree 38 6 63.33

1 4 Respondents

20

40

60

80

10. Do you think performance appraisal help in assessing the training needs of the subordinates? TABLE: SL.NO. 1 2 3 RATING Yes No Sometimes TOTAL : RESPONDENTS 30 2 28 60 PERCENTAGE 50 3.34 46.66 100

INTERPRETATION: The above tabulation format shows that 50% employees are think performance appraisal helps in assessing the training needs of the subordinates. Page 10 of 74

BAR DIAGRAM

50 40 30 20 10 0 Yes 30

50 46.66

28 3.34 2 No Sometimes Percentage Respondents Respondents Percentage

11. Managers can get work out of employees without performance appraisal system. TABLE: SL.NO. 1 2 3 4 RATING Strongly disagree Disagree Agree Strongly Agree TOTAL : RESPONDENTS 0 20 40 0 60 PERCENTAGE 0 33..33 66.67 0 100

Page 11 of 74

INTERPRETATION: The above tabulation format shows that the majority of 66.67% respondents expressed agree to the above statement . CYLINDER DIAGRAM

Percentage

33..33

66.67

0 Agree Strongly Agree

Respondents

20

40

20

40

60

80

12. Awareness programmes regarding performance appraisal system should be conducted periodically. TABLE: SL.NO. 1 2 3 4 RATING Strongly disagree Disagree Agree Strongly Agree TOTAL : RESPONDENTS 0 0 42 18 60 PERCENTAGE 0 0 70 30 100

Page 12 of 74

INTERPRETATION: The above statement agree by 70% respondents and 30% employees are strongly agree the statement i.e., awareness programs are conducted periodically.. LINE DIAGRAM

80 70 60 50 40 30 20 1 0 0 0 Strongly disagree 0 Disagree 42 Respondents Percentage 30 70

1 8

Agree

Strongly Agree

13. Will the performance appraisal system encourage people to plan their work well in advance?
TABLE: SL.NO. 1 2 3 4 RATING Strongly disagree Disagree Agree Strongly Agree TOTAL : RESPONDENTS 6 9 39 6 60 PERCENTAGE 10 15 65 10 100

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INTERPRETATION: The above tabulation shows that 65% respondents agree with the statement performance appraisal system encourage people to plan their work well in advance. CONE DIAGRAM
70 60 50 40 30 20 10 0 Respondents Percentage 9 10 6 39 Strongly disagree Disagree Agree Strongly Agree 15 10 6

65

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14. In this organization, do people have an opportunity to participate in their appraisal?

TABLE: SL.NO. 1 2 3 RATING Yes No Partially TOTAL : RESPONDENTS 40 4 16 60 PERCENTAGE 66.67 6.67 26.66 100

INTERPRETATION: The above tabulation format shows that the majority of 66.67% respondents say yes to the above statement. COLUMN DIAGRAM

70 60 50 40 30 20 10 0 Respondents 4 16 40

66.67

Yes 26.66 No Partially

6.67

Percentage

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15. Superiors in this organization give feedback to their sub-ordinates with adequate care & concern. TABLE: SL.NO. 1 2 3 4 RATING Strongly disagree Disagree Agree Strongly Agree TOTAL : RESPONDENTS 0 12 38 10 60 PERCENTAGE 0 20 63.33 16.67 100

INTERPRETATION: The above table shows that 63.33% respondents agree with the statement that superiors give feedback to their sub-ordinates with adequate care and concern.

16.67

Strongly Agree

10 12 0 0 0

63.33

Agree

38

Disagree

20

Strongly disagree

20

40

60

80 Percentage

100

120

Respondents

16. Do you think performance appraisal system forms proper basis for making decisions regarding promotions and rewards system? TABLE: Page 16 of 74

SL.NO. 1 2 3 4

RATING Strongly disagree Disagree Agree Strongly Agree TOTAL :

RESPONDENTS 2 4 40 14 60

PERCENTAGE 3.33 6.67 66.67 23.33 100

INTERPRETATION: The above table fully explains about whether the performance appraisal system forms proper basis for making decision regarding promotions and rewards system in among employees 66.67% agree. PIE DIAGRAM

Respondents 3% 23% 7%

Strongly disagree Disagree Agree Strongly Agree

67%

17. Does Visakhapatnam Steel Plant go by Merit or Seniority with respect to promotions? TABLE: SL.NO. 1 2 3 4 RATING By merit By Seniority Both None TOTAL : RESPONDENTS 6 18 30 6 60 PERCENTAGE 10 30 50 10 100

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INTERPRETATION: The tabular format explains about whether Visakhapatnam Steel Plant gives promotion by Merit or seniority. 50% respondents say that by both Merit and Seniority. BAR DIAGRAM

Percentage

10

30

50

10 By merit By Seniority Both None

Respondents

18

30

0%

20%

40%

60%

80% 100%

18. Are any Monetary & Non-Monetary benefits given for outstanding performance? TABLE: SL.NO. 1 2 3 RATING Yes No Partially TOTAL : RESPONDENTS 20 20 20 60 PERCENTAGE 33.33 33.33 33.33 100

INTERPRETATION: The above statement shows that employees partially agree that monetary and nonmonetary rewards are given for out standing performance. PIE DIAGRAM

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Respondents

33%

34% Yes No Partially 33%

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19. Do you think performance Appraisal system affects on the organization development? TABLE: SL.NO. 1 2 3 RATING Yes No Partially TOTAL : RESPONDENTS 42 9 9 60 PERCENTAGE 70 15 15 100

INTERPRETATION: This diagram represents performance appraisal system effects on the organizations development.

BAR DIAGRAM

15 Percentage 15 70 Partially No 9 Respondents 9 42 Yes

20

40

60

80

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CHAPTER VI

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FINDINGS
The objectives of VPAS are not clear to many. VPAS has become a routine affair and not much importance given and

interest shown towards their purpose. 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 Technique interview.

FACTORS TO BE INCLUDED INTO THE PRESENT CRITERIA FOR PERFORMANCE EVALUATION: Quality assignment of the work done Disciplinary/administrative lapses Extraordinary occurrences Problem solving skills Productivity or work-output Attitude towards work Behavior and health Efficiency

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Capability to take up higher responsibilities SUGGESTIONS

A Sample of 60 respondents were selected at random the cross-section of employees from the staff to middle level management for their opinions on the existing appraisal system. The survey was conducted (by way of questionnaire and interview) to find out whether the employees are satisfied with the existing system and their opinions on rated areas. SUGGESTIONS FOR A BETTER PERFORMANCE APPRAISAL SYSTEM Use of counseling as a tool to improve performance 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 to wards 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.

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SUMMARY
The quality revolution has changed the ways in which many organizations operate. With global competition, the drive to provide better quality and to satisfy external and internal customers has been activated. At Visakhapatnam Steel Plant, an attempt was made to integrate this thought in Performance Appraisal System. Visakhapatnam Steel Plant executives Performances Appraisal System mainly aims at a Result Oriented executives. To bring this about many activities are to be initiated, like Performance based recognition, competencies to handle future/current jobs, career growth etc and PAS designed to provide the key inputs that all the above need to be activated. Their system of appraisal, in the first instance, looked fool-proof and well designed to suit the quality genre, for it has integrated in itself some wonderful concepts. But, when this study is completed the result/conclusion showed that the employees, who actually are participants in the system, do feel that this system is not very effective. Surprised by this result, an attempt was made to analyze the REASONS FOR DISSATISFACTION of executives their Performance Appraisal System. They are: 1. 2. 3. 4. Mostly this system is not helping the person to assess his capabilities the assessment is mostly dependent upon the obedience with his boss. Self-assessment does not carry enough weight age. So, the drive to sincerely appraise ones own self is lacking. Potential review is integrated in the PAS. But. Potential being the capability to take up the future job cannot be judged by the performance on the present job Training needs identified either through self-assessment or team assessment consolidated and only a few of them are finalized after several rounds of filtering. This indirectly is resulting in training programmes, which do not cater to all the employees, being designed. And as employees perceive that the training they asked for is not being provided, there would by a little or no commitment at all.

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5.

The employees are assessed by a team of appraisers, who are their superiors. The problem here is that the team of appraisers to not have regular interaction with the appraise, may give a rating which can be mostly subjective.

6. 7. 8. 9. 10. 11.

Tasks and targets do not reflect the efficiency of executing them. Absence of a proper reward and punishment system. Lack of time spent by the appraiser and appraisee during the performance review. A good number of employees are not satisfied with the ceiling prescribed for distribution in an appraisal group. Employees feel that filling the application form is a routine job at the procedure and method should keep on changing time to time. While going through the analysis it seems that a good number of people are uncertain about each questions asked to them which clearly shows that there must be some fault existing in the stem which should be recognized and overcome. However, none of the above reasons identified are so damaging that they cannot overcome. With slight changes in appraisal format and rating pattern the problems would be mostly solved. CONCLUSION Performance Appraisal system is very important to assess training needs to effect promotions, and to give pay increase. There are two methods in performance Appraisal system, those are modern tradition method. Appraisal of performance proceeds in a set pattern, the steps involved are defining appraisal objectives, establishing job expectations, designing the appraisal programmes, conduction performance interview, and using appraisal data for different HR activities.

ANNEXURE- I
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MAN POWER AT GLANCE

2005 2006
EXECUTIVES WORKS PROJECTS MINES OTHERS JUNIOUR OFFICERS WORKS PROJECTS MINES OTHERS As on 31-03-2006 3532 2145 225 54 1108 1105 776 27 22 280

2006 - 2007
As on 28-02-2007 3870 2365 269 55 1181 813 557 18 22 216 11736 10542 64 273 857 16419 13464 351 350 2254 As on 31-03-2007 3860 2362 263 56 1179 814 559 18 22 215 11727 10533 64 273 857 16401 13454 345 351 2251

NON 11937 EXECUTIVES WORKS 10687 PROJECTS 68 MINES 281 OTHERS 901 TOTAL WORKS PROJECTS MINES OTHERS 16574 13608 320 357 2289

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MAN POWER AT GALANCE

2006 2007
EXECUTIVES WORKS PROJECTS MINES OTHERS JUNIOUR OFFICERS WORKS PROJECTS MINES OTHERS As on 31-03-2007 3860 2362 263 56 1179 814 559 18 22 215

2007 - 2008
As on 29-02-2008 4192 2572 276 64 1274 761 563 10 21 167 11459 10310 61 264 824 16412 13451 347 349 2265 As on 31-03-2008 4206 2577 275 64 1290 761 564 10 21 166 11459 10302 61 263 823 16416 13443 346 348 2279

NON 11727 EXECUTIVES WORKS 10533 PROJECTS 64 MINES 273 OTHERS 857 TOTAL WORKS PROJECTS MINES OTHERS 16401 13454 345 351 2251

STATISTICAL INFORMATION:
I. PROUCTION PERFORMANCE (000 TONNES)

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YEAR

HOT METAL

LIQUIID STEEL 2,225 2,656 2,909 3,083 3,356 3,508 3,560 3,603 3606 3322

SALEABLE STEEL 2,193 2,382 2,507 2,757 3,056 3,169 3,173 3,237 3290 3074

LOBOURT PRODUCTIVITY (TONNES/MANYEAR) 161 192 211 228 253 262 398 414 413 389

1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009

2,510 2,943 3,165 3,485 3,941 4,055 3,920 4,153 4046 3913

II. COMMERCIAL PERFORMANCE (Rs. Crs.) YEAR 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 II. YEAR 1998-1999 1999-2000 SALES TURNOVER 3,037 3,436 4,081 5,059 6,174 8,181 8469 9126 10425 DOMESTIC SALES EXPORTS 2,677 3,122 3,710 4,433 5,406 7,933 8026 8702 9869 295 322 371 626 768 248 443 425 556

FINANCIAL PERFORMANCE (Rs. Crs.) GROSS MARGIN 15 252 CASH PROFIT (-)346 (-)130 NET PROFIT (-)562

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2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008

504 690 1,049 2,073 3,271 2,383 2633 3515

153 400 915 2,024 3,260 2,355 1700 3483

(-)291 (-)75 521 1,547 2,008 1,251 1363 1943

ANNEXURE- ll QUESTIONNAIRE
Study on performance appraisal system for Executives at Visakhapatnam Steel Plant. Dear Sir,

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I am doing a project in Visakhapatnam Steel Plant, On topic PERFORAMNCE APPRAISAL. I request you sir, to spare your valuable time for giving information. NAME : : : : AGE:

EMPLOYEE NO DISIGNATION DEPARTMENT

Below statements have been framed basing on a rating scale, using the code given below for each statement, please tick your choice ( ) 1. Are you happy being associated with Visakhapatnam Steel Plant? a) Strongly Disagree b) Disagree c) Agree d) Strongly agree

2. Objectives of the Performance Appraisal System (PASS) is clearly spelt out. a) Strongly Disagree b) Disagree c) Agree d) Strongly agree

3. Performance Appraisal system helps in assessing competency? a) Strongly Disagree b) Disagree c) Agree d) Strongly agree

4. Does the performance appraisal help in creating an effective work environment & create positive relationships? a) Strongly Disagree b) Disagree c) Agree d) Strongly agree

5. Performance appraisal system helps in knowing strengths & weaknesses of sub-ordinates. a) Strongly Disagree b) Disagree c) Agree d) Strongly agree

6. According to your opinion, who is the Best person to conduct performance appraisal system? a) Superiors b) Sub-Ordinates c) Peers d) H.O.D.

7. Which one do you think is the best performance appraisal system in your organization? a) Performance & Potential appraisal c) Self Appraisal b) Team Appraisal d) 3600 degree appraisal

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8. What is your opinion on the present performance appraisal system in your organization? a) Excellent b) Good c) Moderate d) Bad

9. Do you feel that low performance is due to lack of skill? a) Strongly Disagree b) Disagree c) Agree d) Strongly agree

10. Do you think performance appraisal help in assessing the training needs of the subordinates? a) Yes b) No c) Sometimes

11. Managers can get work out of employees without performance appraisal system. a) Strongly Disagree b) Disagree c) Agree d) Strongly agree

12. Awareness programs regarding performance appraisal system should be conducted periodically. a) Strongly Disagree b) Disagree c) Agree d) Strongly agree

13. Will the performance appraisal system encourage people to plan their work well in advance? a) Strongly Disagree b) Disagree c) Agree d) Strongly agree

14. In this organization, do people have an opportunity to participate in their appraisal? a) Yes b) No c) Partially

15. Superiors in this organization give feedback to their sub-ordinates with adequate care & concern. a) Strongly Disagree b) Disagree rewards system? a) Strongly Disagree b) Disagree c) Agree d) Strongly agree c) Agree d) Strongly agree 16. Do you think performance appraisal system forms proper basis for making decisions regarding promotions and

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17. Does Visakhapatnam Steel Plant go by Merit or Seniority with respect to promotions? a) By merit b) By Seniority c) Both d) None

18. Are any Monitory & Non-Monitory benefits given for outstanding performance? a) Yes b) No c) Partially

19. Do you think performance Appraisal system effects o the organization development? a) Yes b) No c) Partially

BIBLIOGRAPHY

K.K AHUJA s HUMAN RESOURCE MANAGEMENT, Kalyani Publishers. Page 32 of 74

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.

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