Project On Performance Appraisal in NALCO

A PROJECT REPORT
ON
A STUDY ON
PERFORMANCE APPRAISAL
OF NALCO
Submitted by :
DHARA KANUNGO
Enrollment No. 2103030290900014
UNDER THE GUIDANCE OF

Mr. Biswo Ranjan Mishra
(Asst. Prof. Commerce)
FOR THE PRACTICAL FULFILLMENT OF

MASTER OF BUSINESS ADMINISTRATION (HR)
DIRECTORATE OF DISTANCE AND CONTINUING EDUCATION

UTKAL UNIVERSITY VANI VIHAR
BHUBANESWAR- 751004
Declaration
I Miss Dhara Kanungo, Enrollment No.-2103030290900014 A

student of Master Of Business Administration of Director of Distance &
Continuing Education, Utkal University and do hereby declare that this
"project work entitled “PERFORMANCE APPRAISAL AT NALCO”
submitted by me towards the partial fulfillment of the requirement for the
award of MBA is a record of my own research work. The report embodies
the finding based on my study and observation and has not been submitted
earlier for award of any degree and diploma to any other university or
institution.
Signature of Student
CERTIFICATE
Guide Name : Mr. Biswo Ranjan Mishra

(Asst. Professor, Commerce)
This is certifying that the project report entitled “PERFORMANCE

APPRAISAL AT NALCO” has been prepared by Miss Dhara
Kanungo, under my super vision & guidance, for the practical
fulfillment of Mba (HR). His field work is satisfactory.
Signature of Guide
Date :
Acknowledgement
It is really great pleasure to have this opportunity to describe the

feeling of gratitude imprisoned in the core of my heart. I convey my
sincere gratitude to my external guide MR. SATYABRATA DASH for
giving me the opportunity to prepare my project work in
“PERFORMANCE APPRAISAL”. I express my sincere thanks to all
the staff member of ‘NALCO”.
I have the proud privilege to express my heartfelt gratitude to my
internal guide Mr. BISWO RANJAN MISHRA whose scholarly
supervision and creative suggestion have made this study viable and
privilege thanks to my academic consultant, commerce MR. GIRIDHARI
SAHOO for giving me valuable and timely suggestion during my study.
I express gratitude to our honourable Director Prof. S.P. PANI & all
the faculties and staff of commerce department, who helped me a lot in the
collection of material for study.
Last but not the least I am also indebted to my parents, friends,
relatives who have always given me inspiration and encouragement to
complete the project work I wish to express my sincere thanks to my
friends, who have rendered their help in various ways to accomplish the
project.
Date : Name : DHARA KANUNGO
Place : Bhubaneswar Roll No. 2103030290900014

CONTENT
CHAPTER-1
INTRODUCTION
1. NEED FOR THE STUDY
2. OBJECTIVES OF THE STUDY
3. SCOPE
4. LIMITATINS OF THE STUDY
CHAPTER-2
COMPANY PROFILE
1. HISTORICAL BACKGROUND
2. VARIOUS ESTABLISHMENT OF NALCO
3. SEGMENT, CAPACITY & TECHNOLOGY FEATURES
4. PRODUCTION TARGETS & ACHIEVEMENTS
5. MANPOWER POSITION
6. ENVIRONMENTAL CARE
CHAPTER-3
HRM PRACTICES IN NALCO
1. HRM PHILOSOPHY
2. HRD STRATEGY
3. EMPLOYMENT ADMINISTRATION
4. GRIEVANCE HANDLING SYSTEM
CHAPTER-4
METHODOLOGY
CHAPTER-5
DATA ANALYSIS
FINDINGS
CHAPTER-6
SUGGESTION
CONCLUSION
BIBLOGRAPHY
CHAPTER-7
ANNEXURE
CHAPTER-1
INTRODUCTION
Today, business has grown to be very complex &dynamic. In today’s world business has to
face with a number of challenges. The important areas like market, technology, composition
of work force and attitude and expectation of people are changing very rapidly. Due to all
these factors and organization has to take a fresh look at their different functional areas to
modify and improve the kind and style of management so as to reach its goals easily. There
has to be continuously and effective modification in the management policies due to the
market functions.
An organization consists of four resources such as man, money, material and machinery. The
success and failure of an organization depends upon the effective combination and use of
those resources. However, the principal component of an organization is its “people work” or
“man power” or human resources” which plays a vital role in the success of the organization.
So, the management should take the right step for the improvement and development of these
resources.
Performance appraisal is a systematic evaluation performance and potential of an employee

for development. For an individual it is the means of telling the employee how he is doing,
suggestion the change needed in his behavior, attitude, and skill. Appraisal is objective
judgment of the characteristics, traits and performance of personal by because employers are
interested to know about employee performance. Appraisals are also essential for making
much administrative decision.
"The performance appraisal is the process of evolution the performance and qualification
of the employees in terms of the requirements of the job for which he is employed, for the
purpose of administration including placement, selection for promotion, providing financial
rewards and other action which require differential treatment among the members of group
as distinguished from actions affecting all members equally ".
NEED FOR THE STUDY
There is a degree of unhappiness all around the performance appraisal .the subordinates
complain their bosses try to rate their performance without really knowing what they are
doing .the top management is unhappy because from this has become a ritual and there is no
improvement in the employee performance .
An organization needs to have an appraisal system that is free from bias .being fair and
objectives is of utmost importance for the integrity of the performance review
process .unfortunately ,personal biases ,prejudices and idiosyncrasies, occurring at the
subconscious level can have a negative effect on an employee‘s evaluation .it has observed
that if an employee gets severely negative feedback he can have a deflated picture of his
performance and development needs and might feel angry, alienated, de-motivated and
demoralized ending up suffering from a loss of confidence. On the other hand, when an
employee receives overly positive feedback, there might be ill felling from other employees
who perceive that one employee enjoys preferred status. There are also chances of clouding
an employee understands of what is actually expected from him.
In view of the above situations one need to have meaningful insights on the performance
appraisal system to understand, judge, frame and abide it. Hence this chapter reviews and
analyses performance appraisal from the conceptual and theoretical framework ,which are
advocated by the pioneers in human resource development area .in order to know
performance appraisal role in the organization this study need to be carried and the impact
of the this on the organization development and employee’s performance are to be
known .the organization’s benefits out of performance appraisal system are to be know and
the different methods adopted in doing performance appraisal and there advantages and
disadvantages in adopting them by organization to be known.
OBJECTIVES OF THE STUDIES
1. To study how the performance appraisal is carried in NALCO.

2. To know the importance of the performance appraisal in the development of
organization.
3. To study the impact of the performance appraisal system on the employee
performance.
4. To analyze the reliability of the” Performance appraisal”.
5. To summarize and to suggest for the better performance appraisal methods.
Scope
The study focuses on the existing performance appraisal system of National Aluminum
Company Limited (NALCO). The study over the performance appraisal system for the
execution, of smaller plant of S & P complex, NALCO. The views of executives where taken
thorough primary as well as secondary source.
LIMITATIONS OF THE STUDY
In the present study of Performance appraisal in the NALCO the following limitations are
there:
 The period of study is limited.
 Due to insufficiency of the time, it becomes difficult for the detailed study of
the Performance appraisal of the company.
 As the managers of the organization are busy with their work schedule, it was
difficult to collect detailed data.
CHAPTER-2
COMPANY PROFIELE
HISTORICAL BACKGROUND OF THE COMPANY:
The story of National Aluminium Company Limited (NALCO) a government of India

enterprise is deep routed in the bounty and the benevolence of being of man. The years of
unseen and unsung guest of prospector in the hostile momentous discovery of over 1000
millions tones bauxite reserve in 1975. The Govt. of India during 1979 prepared a feasibility
report and considered to established an integrate Bauxite Aluminum Complex in the state of
Orissa. In Nov 1980, the Govt. of India sanctioned the establishment of Orissa Aluminum
Complex. Finally the project was christened and registered National Aluminum Company
Limited on 7th Jan 1981, in technical collaboration with Aluminum Refinery of France to
implement one of the largest multi-locations integrated Aluminum Project of the world with
its Own Captive Power Plant and port facilities. The Prime Minister of India Late Smt. Indira
Gandhi laid the foundation stone of NALCO at Damanjodi on 29th March 1981, thus began a
new chapter in the history of India’s Aluminum Industry.
National Aluminium Company Limited (NALCO) is considered to be a turning point in the

history of Indian Aluminium Industry. In a major leap forward, Nalco has not only addressed
the need for self-sufficiency in aluminium but also given the country a technological edge in
producing this strategic metal metal as per world standards.
In corporated in 1981 as a public sector enterprises, Nalco was set up to exploit a part of the
large bauxite deposits discovered in the East Cost, in technological collaboration with
Aluminium Pechiney of France (now Alcan).
With consistent track record in capacity utilization, technology absorption, quality assurance,
export performance and posting of profits, Nalco is a bright example of India’s industrial
capability. NALCO now enjoys the status of NAVARATNA Company.
In order to strengthen its market position, NALCO has started the 2 nd phase expansion after
after the successful completion of the 1st phase. The ongoing expansion, with an investment
of more than Rs.5000 crore, which is nearing completion, will raise the capacities of its
various segments:
The company is now planning for 3rd phase expansion at an investment of Rs. 6000 crore,
which will increase Aluminium Smelter capacity to 5.80 lakh tones and power generation to
1400 MW per annum.
M/S Aluminium Pechiney of France a world leader in the fields of Aluminium Provides the
technology and basic engineering for Bauxite mines, Alumina Refinery and Smelter.
NALCO is considered to be turning point in the history of Indian Aluninium Industry. In a
major leap forward NALCO has not only addressed other needed for self sufficiency in
Aluminium, but also given the country a technology edge, in reducing their strategic metal
on the best of world standards.
.NALCO’s original project cost of Rs.2408 cr. was partly finances by 980 million us dollars,
extended by a consortium of international banks. By 1998 the company has paid back
overseas loan and going study with an infernally funded major expiation plan involving and
investing an over Rs.3900 cr.
With its consistent track record in capacity utilization, technology absorption, quality
assurance export performance and posting of profits, NALCO is a bright example of India’s
Industry capacity.
National Aluminum Company Limited is primarily engaged in the production of 5

types of products: Aluminum metal (comprising of ingots, cast strips, billets, wire rods, sows,
and allow wire rods), Alumina and Hydrates (comprising of calcined alumina and alumina
hydrate), aluminum rolled products, Zeoilte-A, and special alumina chemicals.
NALCO produced 4,623,278 MT of bauxite and 358,734 MT of aluminum. The

company's export turnover for 2006-07 amounted to Rs. 2585 crore. Its gross sales were
worth Rs. 6514 crores and profits after tax were to the tune of Rs. 2381 crore.
National Aluminum Company Limited is headed by 5 directors -Mr. K.K. Mallick,

Mr. P.K. Routray, Mr. C.R.Pradhan, Mr. B.L. Bagra, and Mr. Joy Varghese. The National
Aluminum Company Limited has offices in New Delhi, Mumbai, Kolkata, Bangalore,
Mumbai, Chennai, Paradip, and Vishakhapatnam.
Today as an ISO 9002, 14001 & OHSAS 18001 company, NALCO has remerged as
the largest integrated bauxite alumina aluminum complex in Asia.
NALCO has also been a pioneer in corporate social responsibility (CSR) in the Indian
public sector. For example, when NALCO was being built in Damanjodi and Angul, it led to
the displacement of more than 600 families in 50 villages. For these families NALCO
provided employment to the respective nominees. National Aluminum Company Limited is
has also spent as much as Rs. 100 crore for championing various social causes and
development activities. The company has also revamped the infrastructure and other facilities
in the nearby villages. NALCO has also prioritized communication, drinking water,
education, and healthcare for the villages adjoining its plants. Successful
operations of the company in terms of pisciculture and social forestry have led to the increase
of employment generation of income for local residents in areas where National Aluminum
Company Limited has a presence.
EXPANSION PLAN
AMBITIOUS SCHEMES:
Rolled product unit of National Aluminium Company at Angul
BHUBANESWAR: National Aluminium Company (Nalco) has announced that it had drawn
up ambitious growth plans involving an investment of around Rs. 40,000 crore in the next
five years.
The investments would be made in alumina smelters and power projects in Indonesia, South
Africa and Iran, and brown field and green field growth projects within the country.
The company that was given the Navratna status a few weeks ago also said that it would start
the third phase of expansion of its existing operations in Orissa after the second phase of
expansion was completed by the end of this year.
While the second phase of expansion was being implemented with an investment of Rs. 4,092
crore, the third phase was likely to involve an expenditure of Rs. 6,000 crore.
Under the third phase, bauxite mining capacity of the company will be enhanced to around 90
lakh tones annually, alumina refining to 30 lakh tones, aluminium smelting to 6.3 lakh tones
and power generation to 1,700 MW, the company said.
The new projects that the company plans to set up include a mining and a refinery complex in
Andhra Pradesh at an investment of Rs. 7,000 crore, and a smelter and power complex in the
Valley in Jharsuguda district of the State at an investment of Rs. 8,500 crore.
The proposed overseas projects include a 5 lakh tonne smelter and a 1,250 MW captive
power plant in Indonesia with an investment of around Rs. 14,000 crore; a smelter and power
plant in South Africa (Rs. 16,000 crore); and a 3.1-lakh tonne smelter in Iran.
VISION
TO be a Company of Global reputed In Aluminium Sector
MISSION
To achieve growth in business with Global competitive edge providing satisfaction to the
customers, Employees, shares holders and community at large.
ENJOYING NAVRATNA STATUS

At the outset, your Directors are pleased to inform you that in recognition of the Company’s
ability to perform and grow into a significant contributor to the economic development of the
Nation, its competitive advantage and capacity to turn into a global giant, the Government of
India has accorded Navratna status to your Company. On entering the prestigious Navratna
Club, the Board of the Company has been vested with enhanced managerial and commercial
autonomy that will facilitate faster implementation of ambitious growth plans.
PERFORMANCE HIGHLIGHTS PRODUCTION
You will be pleased to learn that the Company exceeded the targets set for production of
alumina and aluminium for the year 2007-08. The aluminium smelter has achieved the
highest ever cast metal production since inception with capacity utilization of 104%. The
bauxite production has improved compared to previous year, though still below the rated
capacity, due to snags in the conveyor system and repeated belt dislodgements. Action has
been taken to prevent recurrence of such problems. The target for generation of electricity
could not be achieved due to less supply of coal by colliery to the Captive Power Plant. The
details of production are given below:
Product Unit 2007-08 2006-07

Bauxite MT 46,84,684 46,23,278
Alumina Hydrate MT 15,75,500 14,75,200
Aluminium MT 3,60,457 3,58,734
Electricity (Net) MU 5,609 5,968
MARKETING
You will be pleased to know that your Company achieved the highest ever sale of metal,
Rolled Products and Special Grade Alumina/ Hydrate during the year. With launching of
NALCO Special Products Alumina (NSPL)-102 in the overseas market through export of 41
MT to Vietnam during the year, yet another milestone was reached.
To strengthen the marketing efforts, a new stockyard in Chennai was opened during the year.
MOUs were signed with 151 domestic customers for sale of metal during 2007-08 as against
118 MOUs during the previous year. The domestic sales of metal were affected from the
smelter plant at Angul and nine stockyards at Kolkata, Baddi, Jaipur, Faridabad, Bhiwandi,
Silvassa, Bangalore, Chennai and Visakhapatnam.
The sales break-up is as follows: (Figures in MT)
Particulars 2007-08 2006-07

Export
Alumina 8,59,943 7,73,573
Special Alumina 41 -
Aluminum 1,00,847 92,678
Rolled Products 876 444
Domestic Alumina & Hydrate 11,307 10,921
Special Hydrate 11,700 8,222
Special Alumina 4,241 2,858
Zeolite-A 4,482 7,156
Aluminium 2,51,612 2,63,494
Total Metal Sale 3,53,335* 3,56,617*
Total Chemical Sale 8,91,714 8,02,730
*The metal sale excludes 4,642 MT (previous year 2,035 MT) consumed internally for
project and Production activities.
FINANCE
The Company has achieved a turnover of Rs. 5,576 crore, as against the turnover of Rs.
6,354 crore during the previous year and Profit After Tax stands at Rs. 1,632 crore, as
against Rs. 2,381 crore in the previous year. The decline in sales realization and net profit
during
the year, compared to previous year, is mainly due to lower sales realization from export of
alumina, substantial appreciation of rupee against US Dollar. Your Company has achieved
an export earning of Rs.2, 135 crore as against Rs.2, 585 crore achieved during the previous
year.
DIVIDEND AND APPROPRIATIONS
As you are aware, your Company paid an interim dividend of 45% in February, 2008. Your
Directors believe that growth in shareholders value lies in capacity expansion and backward
and forward integration. Keeping this in view and in accordance with your Companys policy
of balancing dividend pay-out with the requirement to deploy internal accruals for its growth
plans, your Directors have now recommended a final dividend of 15%, taking the aggregate
dividend for the year to 60%. Your Directors propose to transfer Rs.1,200 crore to General
Reserve Account from the Profit & Loss Account.
PRESIDENTIAL DIRECTIVES
As per Presidential Directives, steps have been taken for recruitment/promotion of

Scheduled Caste/Scheduled Tribe (SC/ST) candidates. Your Company is also complying with
the provisions of the Persons with Disabilities Act, 1995.
As on 31.03.2008, out of 7,413 employees (including trainees) on Companies roll, there

were 1,181 (15.93%) SCs, 1,330 (17.94%) STs, 701 (9.46%) OBCs and 71 (0.96%)
physically challenged persons. Thus, every third employee of your Company belongs either
to SC or ST category. The total number of lady employees in your Company stands at 319.
INDUSTRIAL RELATIONS
Employee involvement through encouragement of more suggestions on production related

issues, formation of quality circles, fostering of communication channels and training, has
been adopted continuously to further the environment of mutual co-operation and trust, for
increasing production and productivity.
In a multi-union scenario, each of the Units of your Company has a recognized Union as per
verification of membership through secret ballot. The structured interactions with the
recognized Unions continued on a regular basis on the matters of production, productivity,
discipline and work culture, besides resolving various demands and employee related issues.
The industrial relations scenario of your Company has remained by and large peaceful. The
total man days lost due to the total man days available during the year was only 0.09% as
against 0.74O/0 last year and the same was mainly due to obstruction by local land displaced
villagers at Damanjodi sector, demanding employment for dependants of LDP employees.
VISIT BY PARLIAMENTARY COMMITTEES
The following Parliamentary Committees visited the corporate office during the year and
meetings were held with the Management of the Company:
- The Standing Committee on Industry on 8th and 9th June, 2007.
- Committee on Government Assurances, Rajya Sabha on 8th and 9th
October, 2007.
- Standing Committee on Coal and Steel on 18th and 19th January, 2008.
CORPORATE SOCIAL RESPONSIBILITY
NALCO s among the very few Central Public Sector Undertakings having an approved
peripheral development policy, under which it allocates up to 1% of its net profit every year
on various development works for the socio-economic improvement of the people of
peripheral
areas. An amount of Rs.23.81 crore was allocated for peripheral development activities, as
part of meeting Corporate Social Responsibilities of the Company for the financial year
2007-08.
Rehabilitation and Peripheral Development Advisory Committees (RPDAC) have been
constituted by Government of Orissa under the Chairmanship of respective Revenue
Divisional Commissioners. Other members of this Committee of the respective region
include senior Government officials of the district, elected public representatives to
Parliament, Assembly and Zilla Parishad and senior officers of your Company. These
Committees prepare the annual peripheral development projects for the respective regions
and also monitor their implementation.
Corporate Social Responsibility activities undertaken by your Company during the year
include: Smelter & Power Complex
- Provision of mobile health care service continued through doctors and para-medical staff,
carrying medicines in van to 38 peripheral villages.
- Organizing Animal Health Camps in the peripheral villages.
- Providing drinking water to the villagers. Besides augmentation of water supply to 11

peripheral villages in the recent past, another project of permanent water supply system for
13 villages at an expenditure of Rs.5.13 crore is in the final stage of commissioning. Further,
tube wells have been dug and village ponds renovated to increase the water storing capacity.
Drinking water was supplied by tankers to the water scarcity villages during summer months.
Mines & Refinery Complex
- Construction of short/stay Home Building for destitutes (Swadhara).
- Distribution of food materials, mineral water and medicines during the out-break of gastro-
enteritis at Laxmipur and Dasmanthpurarea.
- Organizing public awareness programmes for the prevention of gastro-enteritis,

immunization of catties in the district for the prevention of the animal disease- Anthrax.
- Organizing the annual tribal cultural festival of Koraput PARAB-2007.
Corporate Office
- One Mobile Medicare Unit Van was provided to Help- Age India, Bhubaneswar for
providing free medical treatment to the elderly poor people residing in the surrounding
villages of Cuttack and Bhubaneswar.
- Sponsoring different State level cultural functions to promote the Art and Culture.
- Distribution of relief materials at the flood affected areas of Jaleswar and Jajpur, besides
donating relief material (LDPE sheets) through the State Relief Commissioner.
AWARDS & RECOGNITIONS
Your Company received the following awards/prizes during the year under review, which is
an ample testimony for the excellent performance of your Company in various fields:
- Top Export award of CAPEXIL for the year 2006-07, for the record 20th year in
succession.
- Best Environment Management and Accident Prevention, Safety Management and

Communication System Award for the year 2006 instituted by Director,.
Factories and Boiler, Orissa, bagged by Captive Power Plant.
- Industrial Trade Quality Achievement award, for the highest-ever production and export
performance during 2006, instituted by the Council for Industrial & Trade Development
(CITD).
- 2nd prize for Best Practices in Safety, Health and Environment at Enterprise Orissa 2007,
organized by the CII, was bagged by Captive Power Plant.
Engineering Export Promotion Council, Eastern Regions Gold Trophy, as Top Exporter in
the Large Enterprise Category, for outstanding contribution to engineering exports during the
year 2005-06.
- 6 prizes including the overall best performance prize during the annual Joint Mines Safety
Week 2007 of NALCO- NMDC were bagged by Panchpatmali Bauxite Mines.
- Shri Gopabandhu Dash of Smelter Plant and Shri Parsuram Swain of CPP of your
Company have been adjudged as the recipients of Shram Vir Award and Shram Shree Award
of Government of India, respectively.
GROWTH PLANS
The work on 2nd phase expansion programme at an estimated cost of Rs.5,003 crore (at
March, 2007 price level) is in full swing. The annual capacities of the various project
segments and those after 2nd phase expansion are given below:
Overall Progress
Project Segment Actual Progress (July, 2008)

(a) Mines & Refinery 84%
(b) Smelter 82%
(c) CPP 85%
Orders have already been placed for 141 packages out of 155 packages of Mines & Refinery
128 packages out of 139 packages for Smelter and 27 packages out of 28 packages for CPP.
Enquiries for balance packages have been issued for each segment and are under process. The
project is scheduled to be commissioned in December, 2008.
Coal Mine
Your Company has been allotted UTKAL-E Coal Block, having a reserve of around 70
million MT for its new units at Captive Power Plant. Considering the present progress, it is
expected that the mining would start by December, 2009.
MOU PERFORMANCE
NALCO’s performance has been rated Excellent in the evaluation of the Memorandum of
Understanding (MOU) signed with Government of India for the year 2007-08.
RAJBHASHA
During the year under review, efforts continued for promoting progressive use of Rajbhasha
(Hindi) in day-to-day official correspondence of your Company.
On the occasion of Quami Ekta Week, two Hindi Kavi Sammelans were organized, one at
Corporate Office, Bhubaneswar and another at Mines & Refinery Complex, Damanjodi with
participation of poets of National fame. Hindi Week/Fortnight was observed at all the offices
and units of your Company in September, 2007. On this occasion, Hindi competitions like
essay, calligraphy, debate, self-composed poetry, letter-writing, noting, dictation and slogan
etc. were organized in which large number of employees participated. On the occasion of
Hindi Week, Hindi magazines, Akshar at Corporate Office, and Teen Suman at Damanjodi
unit were published, in which selected articles, poems and stories written in Hindi by
employees were published.
Nomination of employees of your Company for Hindi typing and stenography and Hindi
computer training under Hindi Teaching Scheme were made as in previous years. As there is
no centre of Hindi Teaching Scheme of Government of India at Angul and Damanjodi, Hindi
training in these sectors is being imparted through correspondence courses and by own
arrangements.
Bilingual computerized forms used in the office have been prepared and uploaded at Intranet
site of the Company for use by all. For facilitating Hindi nothings on files, a booklet and
leaflet of
English-Hindi short nothings were published and distributed.
VIGILANCE
The main emphasis of Vigilance Department of your Company is prevention and detection
of corruption and system improvement. Through surprise checks, regular inspections, sample
tests, CTE type intensive examination of Works, Purchase and Service Contracts etc.
irregularities are brought to the notice of Competent Authorities for necessary corrective
action. As advised by Central Vigilance Commission, e-procurement, e-payment, e-tendering,
etc. are being pursued and progress for complete implementation are being followed up. A
comprehensive Vigilance Manual has been published and distributed among the employees
for hands-on knowledge on vigilance. Seven training sessions were conducted at different
units of the organization for Sensitizing employees on vigilance.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION
A statement giving details of the Conservation of Energy and Technology Absorption is

placed at Annexure -I hereto and forms part of this report.
FOREIGN EXCHANGE EARNING AND OUTGO (ON CASH BASIS)
Foreign Exchange Earnings of your Company for the year under review was Rs.2,095 crore
as against Rs.2,576 crore in the previous year 2006-07.
Foreign Exchange Outgo of your Company for the year 2007-08 was Rs.719 crore as against
Rs.336 crore in the previous year 2006-07.
PARTICULARS OF EMPLOYEES U/S 217(2A) OF THE COMPANIES ACT, 1956
None of the employees of your Company was in receipt of remuneration of Rs.2 lakh per
month or Rs.24 lakh per annum during the year 2007-08.
STATUS OF LISTING IN STOCK EXCHANGES
The equity shares of your Company continued to be listed on Bombay Stock Exchange
Limited, Mumbai (BSE), and National Stock Exchange of India Limited (NSE). The listing
fee has already been paid to these Stock Exchanges.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to the provisions of Section 217(2AA) of the Companies Act, 1956, your Directors
hereby confirm:
- that in the preparation of the annual accounts, the applicable accounting standards have
been followed along with proper explanation relating to material departures;
- that the directors have selected such accounting policies and applied them consistently and
made judgments and estimates that are reasonable and prudent so as to give a true and fair
view of the state of affairs of the Company at the end of the financial year and of the profit of
the Company for that period;
- that the directors have taken proper and sufficient care for the maintenance of adequate
accounting records in accordance with the provisions of Companies Act, 1956 for
safeguarding the assets of the Company and for preventing and detecting fraud and other
irregularities;
- That the directors have prepared the annual accounts on a going concern basis.
IMPLEMENTATION OF THE RIGHT TO INFORMATION ACT, 2005
NALCO, as a responsible corporate citizen and as a Public Authority, believes in providing

access to information under its control to the citizens of India under the provisions of the
Right to Information Act, 2005 (RTI Act).
In compliance with the mandatory provisions of the RTI Act, your Company appointed one
Public Information Officer (PIO), ten Assistant Public Information Officers(APIOs) and one
Appellate Authority (AA). NALCO compiled information under 17 different
templets/manuals for voluntary/suo-moto disclosure as required under Section 4(l) (b) of the
Act and hosted the same on the Companies website, www.nalcoindia.com. The information
so published is being regularly updated.
Detailed Internal Procedure has been prepared and circulated for effective implementation of
RTI Act for creating awareness among the employees about the various provisions of the Act
and the procedural aspects thereon, Text of RTI Act; list of PIO, APIOs and AA has been
hosted in the Companies intranet site.
NALCO has also developed a user friendly web enabled information seeking system for
handling and processing of information requests electronically. An exclusive e-mail ID
right2information@nalcoindia.co.in has been created for the benefit of information seekers,
who can send their information requests through e-mail as advance intimation to the
Company.
a) London metal Exchange reorganization May 1989
b) Star Training Home Status Jan 1992
c) Indira Gandhi Rajbahsa Award 1993 & 1995
d) ISO 9002 certification:
Aluminum Refinery Nov 1994
Captive Power Plant Dec 1995
Bauxite Mines Jan 1996
e) Indira Priyadarshuni Vrikshamitra Award 1994

f) ISO 14001 Certification
Bauxite Mines June 1996
Aluminum Refinery Feb 1997
Captive Power Plant Dec 1997
Smelter Plant May 1998
g) FICCI Award for pollution control & Environment 1996 – 97

h) Excellent performing public sector enterprise Award 1996 – 97
i) Environment protection awarded by IIEE Dec 1997
j) The best Occupational health service
Award by Govt. of Orissa March 1998
k) Gem Sitaram Rungta Memorial social Awareness
Award 1997 – 98
l) First EEPC Export Award 1998 – 99
m) Pollution Control Excellence Award for CPP 2000
VARIOUS ESTABLISHMENT OF NALCO
A) SMELTER PLANT AND CAPTIVE POWER PLANT :
Both smelter plant and captive power plant of NALCO situated near NALCO NAGAR
in the district of the Angul(ORISSA). Angul today is fairly big and busting town on the
National Highway No. 42 which is main highway connecting Bhubaneswar with
Raipur(MP), Sundargarah and Rourkela. NALCO has established it’s smelter plant,
captive power plant and its township closed to the National Highway. The NALCO
township is known as Nalco Nagar lies modern and well planned. In addition to 3050
dwelling units and trainees, hotel with 300 rooms, Nalco Nagar has many civic facilities
like community center, clubs, stadium, swimming pool, market complex etc, the
company has established a 50 beded hospital with ultra modern facilities. As in case of
Damanjodi, there is an engilish medium public school and an Oriya Medium Saraswati
Sisu Mandir offering excellent educational facilities to employees children.
SMELTER PLANT:
The 3,45,000 tpa capacity Aluminium

Smelter is located at Angul in Orissa.
Based on energy efficient state-of-the-art
technology of smelting and pollution
control, the Smelter Plant is in operation
since early 1987.Presently, the capacity
is being expanded to 4,60,000 tpa.
Micro-processor based pot
Advanced 180 KA cell technology
regulation system
 Fume treatment plant with dry-scrubbing system for pollution control and fluoride salt
recovery
 Integrated facility for manufacturing carbon anodes, bus bars, anode stems etc.
 4 x 35 tone and 4 x 45 tone furnaces and 2 x 15 tph and 2 x 20 tph ingot casting
machines
 4 x 45 tonne furnaces and 2 x 9.5 tph wire rod mills
 2 x 45 tonne furnaces and 60/42 per drop billet casting machine

 2 x 1.5 tonne induction furnace with a 4 tph alloy ingot casting machine
 26,000 tpa strip casting machines
With the acquisition and subsequent merger of International Aluminium Products Limited
(IAPL) with Nalco, the 50,000 tpa export-oriented Rolled Products Unit is all set to produce
foil stock, fin stock, can stock, circles, coil stock, cable wraps, standard sheets and coils.
ROLLED PRODUCTS :
Nalco has set up a 50,000MT per-

annum Rolled Products Unit,
integrated with the Smelter Plant at
Angul, for production of aluminium
cold rolled sheets and coils from
continuous caster route, based on the
advanced technology of FATA
Hunter, Italy.
ROLLED PRODUCT,
NALCO, ANGUL
CAPTIVE POWER PLANT

Close to the Aluminium Smelter at
Angul, a Captive Power Plant of 960
MW capacity, comprising 8 x 120 MW
clusters, has been established for firm
supply of power to the Smelter.
Presently, the capacity is being
expanded to 1200 MW.
Captive Power Plant

Captive Power Plant,
Nalco Nagar, Angul
 Micro-processor based burner management system for optimum thermal efficiency
 Computer controlled data acquisition system for on-line monitoring
 Automatic turbine run-up system
 Specially designed barrel type high pressure turbine

 Electrostatic precipitators with advanced intelligent controllers
 Wet disposal of ash

The water for the Plant is drawn from River Brahmani through a 7 km long double circuit
pipeline. The coal demand is met from a mine of 3.5 million tpa capacity opened up for
Nalco at Bharatpur in Talcher by Mahanadi Coalfields Limited. The Power Plant is inter-
connected with the State Grid.
MINES AND REFINERY COMPLEX: BAUXITE MINES
Mines and Refinery Complex On Panchpatmali hills of Koraput

district in Orissa, a fully mechanized
opencast mine of 4.8 million tpa
capacity is in operation since
November, 1985, serving feedstock
to Alumina Refinery at Damanjodi
located on the foothills. Presently,
the capacity is being expanded
to 6.3 million tpa.
 Area of deposit - 16 sq. km.

 Resource - 310 million tonnes
 Ore quality - Alumina 45%, Silica 2%
 Mineralogy - Over 90% gibbsitic
 Over burden - 3 meters (average)
 Ore thickness - 14 meters (average)
 Transport - 14.6 km long single flight multicurve cable belt conveyor of 1800 t
ALUMINUM REFINERY COMPLEX

The mines and Aluminum Refinery
Aluminum Refinery Complex of NALCO are situated at
Complex, Damanjodi
Damanjodi in the district of Koraput,
Orissa. Damanjodi where NALCO
has established its Aluminum
Refinery and township is one of the
picturesque valleys of this beautiful
district, on the foothills of Panchapatamali hills. The plateau is connected by a 16KM long up
hill road Damanjodi is 12KM from located is connected by a 16Km long up hill road
Damanjodi is 12Km from similiguda, a small town located at the National Highway No. 43
that connects Vijayanagaram and Andhra Pradesh with Raipur of MP. The Sunabeda
township of Hindustan Aeronauties Limited is 18Km. From Damanjodi. NALCO Township
at Damanjodi is a well planned one equal to the NALCO Nagar Township situated at Angul.
B) PORT FACILITIES :
On the Northern Arm of the Inner

Harbour of Visakhapatnam Port on the
Bay of Bengal, Nalco has established
mechanized storage and ship handling
facilities for exporting Alumina in bulk
and importing Caustic Soda.
Visakhapatnam Port
 Maximum ship size - 35000 DWT
 Alumina reception - 48 x 53 tonne pay-load wagons
 Alumina storage - 3 x 25000 ton RCC Silos
 Ship loading rate - 2200 tph
 These facilities are being upgraded to handle higher volumes of exports,

following expansion of production capacities.
C) CORPORATE OFFICE :
NALCO BHAWAN, BHUBANESWAR
The registered office of NALCO is located at Bhubaneswar, the capacity city of Orissa.
The company has established its own office building as NALCO BHAWAN, is located
at Nayapalli, Bhubaneswar. The officers of the functional board of directors including
the Chairman-Cum-Managing Director function in this building. Decisions on all
company’s policy matter are taken up here.
PLANT CAPACITIES & TECHNOLOGY FEATURES:
Segment Capacity Location Special Technological Features
1. Bauxite
4800000 TPA Panchapatamali,  Fully mechanized open cast
Mine
Orissa. mines with computerized mine
planning.
 970 Million tones deposite
estimated.
 14.6 Kms. Long single-flight
multi curve.
 1800 tpa capacity computerized
conveyor system for
transportation of Ore.
2. Alumina 15,75,000 TPA Damanjodi, Orissa.  Atmospheric pressure digestion

Plant Chemical Plant. process.
 Energy efficient fluidized Bed
Calciners.
 Co-generation of 3 x 18.5 MW
power by back pressure turbines
from process stems.
 Integrated facilities for
manufacture speciality Alumina,
Hydrates and Zeolite.
 Advanced 180 KA Cell
3,45,000 TPA technology.
metallurgical Angul, Orissa  Microprocessor based pot-

Plant regulation system.
 Fume treatment with dry
scrubbing system.
 Integrated anode making,
aluminum and rolling facilities.
3. Power Plant 960 MW coal Angul, Orissa  Micro Processor based burner
fired thermal Management.
power plant  Automatic turbine run u system.
turbines.  Specially designed high pressure.
 Advanced electrostatic
precipitators.
4. Port 3,75,000 TPA Vizag, AP  Mechanized storage facility of

Facilities for Alumina 3x25000 T capacity.
export and  Mechanized Mobile Ship Loader
1,46,000 TPA of 2200 TPH capacity.
for caustic Soda  Capacity to handle ship up to
lye import. 35000 DWT.
PRODUCTION TARGETS AND ACHIEVMENTS:
NALCO is growing day by day crossing its target. Here are the targets and achievements of
different segments in production field.
The target and achievements of the company as on 31st March 2005.
SEGMENT UNIT TARGET ACHIVEMENTS
Bauxite Mines MT 4800,000 4851,726
Alumina Refinery MT 1560,000 1575,500
Aluminum Smelter MT 348,000 338,483
Captive Power Plant MT 5800 5617
MANPOWER POSITION :
The Manpower of the company as on 31st March 2005 is given below.
Project Segment Existing Executives Existing Non-Executive
Bauxite Mines and 454 1690

Aluminum Refinery.
Aluminum Smelter 607 2021
Captive Power Plant 437 972
Port 26 33
Corporate 192 182

ENVIRONMENTAL CARE:
ENVIRONMEENTAL POLICY OF NALCO:

In recognition of interest of the society in securing sustainable, Industrial growth. Compatible
with a whole some environment. NALCO affirms that it assigns high importance to
promotion and maintenance of a pollution free environment in all its activities.
Keeping this in view, NALCO has set the following objectives:
 To use non-polluting & environment friendly technology in all industrial activities.

 To monitor regularly air, water, land, noise and other environment conditions and
pollutions fall outs.
 To constantly improve upon the stands of pollution control and provide a leadership
in environment Management.
 To develop among the employees an awareness of environmental responsibility and
their adherence to sound environmental practices.
 To work closely with Govt. & local Authority help to prevent the minimize adverse
consequences of the industrial activities on the environment.
 To comply all applicable laws of the land governing environmental protection.
ENVIRONMENT MEASURES TAKEN BY THE UNITS:
MINES:
 Periphery barrier of 15M width having green cover around mines.

 Garland drains and drainage control within the mines.
 Dust suppression at source and sprinkling of water.
 Total overburden excavated with top soil used for reclamation and rehabilitation of
mined out areas with vegetation owner.
ALUMINA REFINERY:
 High efficient ESP’s at Calciners and steam Generation Plant.

 Multi-stage washing of red mud and its storage in specially designed pond.
 Use of dust collectors as handling and transport areas of Bauxite, Coal, Lime and
Alumina.
 Recycling of waste water.
ALUMINA SMELTER:
 Hooding of post and absorption of fluorine gas by dry scrabbing with Alumina in
Fume Treatment Plant.
 Defluoridations of reduce fluorine level of contaminated surface water.
 Specially designed prevention system for spent plotlines.
CAPTIVE POWER PLANT:
 Electro-static precipitators with advanced intelligent controllers and effective stack

missions control.
 Efficient burner management to reduce the imission of carbon monoxide.
 Ash-pond with zero discharge and recycling of waste water.
CHAPTER-3
HRM PRACTICES IN NALCO
HRM PHILOSOPHY OF NALCO:
 To attract component personnel with growth potential and develop their-skills and
capabilities in a congenial work and social environment through opportunities for
training, recognition, career advancement and other incentives.
 To develop and nurture favorable attitudes among the employees and to obtain their
best contributions to the organization by providing stable employment, safe working
condition, job satisfaction, quick redressal of grievances and through good pay and
welfare amenities commensurate with the company’s capacity to spend and the Govt.
guidelines.
 To foster fellowship and sense of belongingness among all sections of employees
through closer association of employees with the management and by encouraging
health trade union practices.
HRD STRATEGY OF NALCO

- Data based performance appraisal system
- Decentralization through :
 Organization restructuring.
 Delegation of power.
 Career planning and succession planning through:
- Training
- Job rotation
- Manpower evaluation and re-allocation
- Long term wage settlements
- Suggestion schemes
- Productivity based incentive scheme
EMPLOYEMENT ADMINISTRATION:
 MANPOWER PLANNING
 RECRUITMENT
 SELECTION
 INDUCTION
MANPOWER PLANNING:
Manpower planning is “the process by which a management determines as to how an

organization should move them its current manpower position to its desired manpower
position.” Through Planning, a management strives to have the right number at the right
kinds of people at the right place at the right time to do things, which result in both the
organization and the individual receiving the maximum long range benefits. It is a strategy of
determination, acquisition, utilization improvement and preservation of enterprises human
resources. It relates to establishing job specifications or the quantitative requirements of jobs
determining the number of personnel required and the means of meeting these requirements
and developing sources of manpower in order to carry out the integrated plan of the
organization. The manpower plan can be broken down in to three components:-
i) Forecasting i.e. estimating future needs and stock taking of available resources in
the organization.
ii) Recruitment plan and meet the gap between the internal resources and estimated
need by external recruitment.
iii) Training and development plan to utilize fully the human resources of the
organization and to develop the potential resources.
In NALCO, the manpower planning system was introduced in 1983 when the company was
in the project stage. The planning and forecasting of manpower recruitments are with
reference to the following broad criterions:-
a) Finding the job evaluation studies.

b) Creation of new facilities, new equipments.
c) Change in designation or up gradation of existing system.
d) Chang in structural requirements of business.
e) Expansion and diversification programs.
f) Employees turn over on account of resignation and retirement.
g) Identification of jobs for off loading on contracts.
h) Lead time required for training employees in different categories.
RECRUITMENT:
In NALCO, recruitment is mainly done through two sources, i.e. external and internal. The
recruitments are done subject to Govt. guidelines. The recruitment for non-executive post are
held at unit levels well within the manpower sanction and approved by the board and subject
to guidelines of Govt. guidelines.
However all recruitment to executive post are centrally organized by corporate HRD Deptt.
SELECTION:
For executives, the selection is made at corporate level, for both Technical and Non-
Technical category, written test is conducted, which is followed, by personal interviews,
group discussion and medical examination.
For non-executives, selection is made at unit level. For Technical category, a written test or
trade test followed by personal interview are held while for non-technical category, a written
test followed by viva-voice or personal interview is held.
The selection process is organized by HRD Department, the HRD department makes
available to the members of selection committee with the following documents and
particulars and particulars regarding the candidates at time of interview.
a) A copy of the notification or press advertisement with specific requirements of the

post.
b) Bio-data of each candidate.
c) Applications in original.
d) Appraisal reports and comments of following authority incase of internal candidates.
e) Result of test. If any, held prior to interview.
f) Any special information considered being relevant to the selection of the candidates.
g) Information pertaining to number of vacancy for each category under selection
includes those reserved for SC/ST/PH/Ex-Serviceman or OBC etc., required to be
filled up through selection process.
GRIEVANCE HANDLING SYSTEM:
NALCO continuously strives to create and sustain a grievance free climate in the
organization. Yet when any act of omission or commission causes a grievance, readily
accessible machinery is available in NALCO for prompt redressed of the same.
OBJECTIVES:
To provide a formal channel for redressed of grievances of individual employees in their

employee relationship.
- To take all possible steps for redressed of grievances.

- To review and recommend action for minimizing such grievances in future.
SCOPE:
a) Individual grievances cover all the matters except :-

i. General issues involving scale of pay, allowances, fringe benefits etc.
ii. Disciplinary action taken under conduct, Discipline and Appeal Rules of the
company.
iii. Case relating to vigilance and security, criminal proceeding.
iv. Discharge or termination of services as per terms of contract of employees.
v. Promotion policy of the company.
b) Individual grievances normally cover the matter relating to :-

i. Physical working conditions and welfare amenities.
ii. Allotment of quarters.
iii. Attendance.
iv. Payment of wages, allowances, overtime, increments, arrears etc.
v. Recoveries from wages.
vi. Medical facilities.
vii. Seniority.
viii. Transfer.
ix. Leave.
x. Promotion and action in higher position.
OBJECTIVES OF THE INDIVIDUAL GRIEVANCE PROCEDURE:
 To reach individual employee informally on regular intervals for better employee’s

interaction and industrial relation.
 To attend their individual grievance for analyzing the areas of concerned and to
facilitate better services in future.
 To provide conductive atmosphere where the employee feel free to experience his
grievance in open.
 To prevent accumulation of individual grievances.
CONSTRUCTION OF GRIEVANCE COMMITTEE:
The committee is constituted with the following members:-
 Chairman (Nominated by management)

 Two representatives of management.
 Two representatives of the employees.
The management nominated the chairman. The recognized union recommends the
representatives of management and the management selects the two numbers.
The grievance committee meets once in every fortnight in which one member of
management, one member of the employee’s representative and the chairman are available.
CHAPTER-4
METHODOLOGY
Methodology is scientific and systematic search for pertinent information on specific topic.
The reliability of management decisions depends upon the quality of data. Basically we have
two types of data:
1. Primary data.
2. Secondary data.
PRIMARY DATA:-
Primary data can be collected either through experience or through survey. Those which are
collected a fresh and for the first time thus happen to be original in character that is called
primary data.
We collect primary data during the course of doing experiments in an experimental research
but in case we do research of the descriptive type and perform surveys, and whether sample
surveys or census surveys, then we can obtain primary data either through observation or
through direct communication with respondents in one form or another of through personal
interviews, This, in other words, means that there are several methods of collecting primary
data, particularly in surveys and descriptive researches important ones such as observation
method, interview method, through questionnaires, through schedules etc.
Primary data can be collected in the following ways:
 By observation.
 Through telephone interviews.
 By mailing of questionnaires.
 Through schedules.
SECONDARY DATA
Secondary data means data that are already available that is they refer to the data which have
already been collected and analyzed by some one else and which have already been passed
through the statistical process is called secondary data. Secondary data may either be
published data or unpublished data that data are available.
Usually published data are available in various publications of the central, state are local
governments; various publications of foreign governments or of international bodies and their
subsidiary organizations technical and trade journals; books magazines and news papers etc.
are sources of secondary data. Researcher must be very careful in using secondary data.
CHAPTER-5
DATA ANALYSIS
To know the effectiveness of Performance Appraisal System in NALCO and its contribution
towards organizational effectiveness, a survey was done with the help of a structured
questionnaire to ascertain the attitude of the employees. For this purpose thirty executives
belonging to different streams were selected on the basis of stratified random sampling. The
responses of the executives have been analyzed and tabulated as follows:-
1. First question to the respondents was, whether performance appraisal has led to
improve profitability and more positive attitudes toward profit orientation?
Option No. Of emp Percentage (%)
1. Strongly Agree 4 13.33
2. Agree 16 53.33
3. Can Not Say 2 6.67
4. Disagree 6 20
5. Strongly Disagree 2 6.67
Findings: - Maximum respondents say that performance appraisal has led to improve
profitability and more positive attitudes toward profit orientation.
2. The next question to the respondents was, whether they were satisfied with the
Performance Appraisal Process in the organization i.e. does it actually improve the
morale of the workforce?
Options Number Percentage (%)
of of
Employees Employees
1. Strongly Agree 6 20
2. Agree 16 53.33
4. Disagree 6 20
5. Strongly Disagree 0 0
Findings: - Maximum respondents say that they were satisfied with the Performance
Appraisal Process in the organization and it actually improve the morale of the workforce.
3. The next question to the respondents was, whether your organization is improving
your job knowledge, Skill, Attitudes at all level of organization.
of of
Employees Employees
2. Agree 10 33.33
3. Can Not Say 6 20
4. Disagree 0 0
Findings: - Maximum respondents are strongly agreed that that their organization is
improving their job knowledge, Skill, Attitudes at all level of organization.
4. The next question to the respondents was, whether their training aids in organizational
development?
of of
Employees Employees
2. Agree 18 60
3. Can Not Say 0 0
4. Disagree 4 13.33
Findings: - Maximum respondents agreed that their training, aids in organizational

development.
5. The next question to the respondents was for some managers, whether the training
aids you in understanding and carrying out organizational policies?
of of
Employees Employees
2. Agree 14 46.67
3. Can Not Say 6 20
4. Disagree 2 6.67
Findings: - Maximum respondents agreed that the training aids you in understanding and
carrying out organizational policies.
6. The next question to the respondents was some subordinates, whether these training
programmes are helps the employees adjust to change?
of of
Employees Employees
2. Agree 10 33.33
4. Disagree 0 0
Findings :- Maximum respondents agreed that these training programmes are helps the
employees adjust to change.
7. The next question to the respondents was, whether this Appraisal helps them
individually in making better decisions and effective problem solving?
Of of
Employee’s employees
2. Agree 14 46.67
4. Disagree 10 33.33
Findings: - Maximum respondents say, these Appraisal programmes are helps them
individually in making better decisions and effective problem solving.
8. The next question to the respondents was, whether their appraisal helps them to
overcome their weakness.
of of
Employees Employees
2. Agree 10 33.33
3. Can Not Say 6 20
4. Disagree 10 33.33
Findings: - Maximum respondents say that their boss normally does counsel them about their
performance to overcome their weakness.
9. The next question to the respondents was, whether they have a strong say about their
performance because of the introduction of self-appraisal system, which was not there
before.
of of
Employees Employees
2. Agree 12 40
4. Disagree 0 0
Findings: - Maximum respondents say that they do have a strong say about their performance
because of the introduction of self-appraisal system, which was not there before.
10. The next question to the respondents was, whether the appraise gets familiarized with
the culture, norms and value system in the organization, because of the regular
interaction between appraise and appraiser.
of of
Employees Employees
2. Agree 14 46.67
3. Can Not Say 6 20
4. Disagree 6 20
Findings :- Maximum respondents say that the appraise do gets familiarized with the culture,
norms and value system in the organization, because of the regular interaction between
appraise and appraiser.
11. The next question to the respondents was, whether the last four months before the
appraisal crucial in influencing the assessment of the superior.
of of
Employees Employees
2. Agree 10 33.33
3. Can Not Say 6 20
4. Disagree 4 13.33
Findings: - Maximum respondents say that the last four months before the appraisal is crucial
in influencing the assessment of the superior.
12. The next question to the respondents was, whether after the introduction of EPAR
system, has their performance been increased as it makes them more dutiful in their
job.
of of
Employees Employees
2. Agree 20 66.67
4. Disagree 3 10
Findings :- Maximum respondents say that after the introduction of EPAR system, their
performance has been increased as it makes them more dutiful in their job.
13. The next question to the respondents was, whether the EPAR system helping to create
a positive and collaborative environment in their organization.
of of
Employees Employees
2. Agree 18 60
4. Disagree 6 20
Findings: - Maximum respondents say that the EPAR system is helping to create a positive
and collaborative environment in their organization.
14. The next question to the respondents was whether the performance appraisal system
helps them in setting future goals or targets.
of of
Employees Employees
2. Agree 16 53.33
3. Can Not Say 0 0
4. Disagree 5 16.67
Findings :- Maximum respondents say that the performance appraisal system does help them
in setting future goals or targets.
15. The next question to the respondents was whether the evaluation system (EPAR)
should be fully confidential, fully transparent or semi confidential.
of of
Employees Employees
1. Fully confidential 12 40
2. Fully transparent 3 10
3. Semi confidential 15 50
Findings: - Maximum respondents say that the evaluation system (EPAR) should be semi
confidential.
16. The next question to the respondents was how they felt when their performance was
negatively rated.
of of
Employees Employees
1. Key to success 17 56.67
2. Humiliated 8 26.67
3. No reactions 5 16.67
Findings :- Maximum respondents say that when their performance was negatively rated
they felt that it is the key to success.

17. The next question to the respondents was, which criteria in the evaluation process,
they would like to have as an appraiser.
of of
Employees Employees
1. Scope to develope
subordinates 8 26.67
2. Evaluate sub-
ordinates against
standards 4 13.33
3. Appraisal of
employees
potential 14 46.67
4. To improve
organizational
productivity 4 13.33
Findings: - Maximum respondents say that as an appraiser, they would like to have appraisal
of employee’s potential as the first choice in the evaluation process.
18. The next question to the respondents was, in the appraisal process as an appraiser,
what things they would opt for.
of of
Employees Employees
1. Awareness skills 2 6.67

2. Follow up training
and development 10 33.33
3. Understanding the
organizations
expectation from
the superior 9 30
4. Promotional avenue 9 30
Findings :- Maximum respondents say that as an appraiser, they would opt for follow up
training and development as the first choice in the appraisal process.
19. The next question to the respondents was, whether they would like to see the
following changes in the performance appraisal process.
of of
Employees Employees
1. Provisions for pre

and post appraisal
interviews 9 30
2. Introduction of
evaluation by
a committee 2 6.67
3. Prior fixation
of targets 9 30
4. Training on
performance
appraisal skills 10 33.33
Findings: - Maximum respondents say that as an appraiser they would like to have training on
performance appraisal skills in the performance appraisal process.
20. The last question to the respondents was for what purposes performance appraisal is
currently used in their organization.
of of
Employees Employees
1. Promotion 22 73.33
2. Training and
Development 8 26.67
3. Special rewards 0 0
4. Placement and
Transfer 0 0
Findings :- Maximum respondents say that mainly for the purpose of promotion, performance
appraisal is currently used in their organization.
CHAPTER-6
Suggestion
1. The Performance Appraisal system should be more specific and transparent with
out bias.
2. Performance or failure should be recorded impartially and honestly.
3. All have sufficient attitude to implement the PA system highly.
4. Managers should spend sufficient time and discus with their subordinated about
their performance on job. They should try to analyze their strengths and weakness
of their subordinates.
5. Good/outstanding performance should be rewarded and motivated b giving

incentives.
6. Periodical orientation programmers should be rewarded to explain about the

objectives and other details of the appraisal system.
7. Appraisal should take the more responsibility how to implement the PA system.
8. The performance Review meeting should be conducted as stipulated in the system.
9. The appraisal booklets should be sending to the different departments at right

time.
10. In the PA system the objectives area should be than the subjective area.
11. It is necessary for the system toe establish the way by which the executive and his
boss can deal mete directly with work related problem.
CONCLUSION
From the above opinion survey, it has been seen that executive performance appraisal report
(EPAR) system has got a good response in most of the areas. From the table it is clear that 52
% of the executives say that performance appraisal system (PAS) has led to the emergence of
an effective work force in the organization and when the question was asked whether they
were satisfied with the executive performance appraisal report (EPAR) system in the
organization and does it actually access their potentiality then 69 % of the executives say that
they were satisfied with the executive performance appraisal report (EPAR) system in the
organization and it does access their potentiality executives but the rest disagreed saying that
even if the evaluation system is done for the sake of both employees and the organization the
internal mechanism becomes ineffective at the time of promotional activities.
Then for the present evaluation system, superiority over the past system the feedback is also
good and 83 % of the executives say so as the present evaluation system is based on the
modern method performance appraisal so the method is management by objective (MBO)
where the objectives are first set up to which the executives are required to fulfill.
When the question was asked the performance appraisal system helps them to know their
own competencies then 81% of the executives say that agreed that this system helps them to
know their own competencies by letting them to know their strength and weakness. Then for
the question of improvement of the superior subordinate relationship nearly 72 % of the
executives agreed upon that the new system have improved the superior subordinate
relationship.
When the question was asked whether their boss normally counsels them about their
performance to overcome their weakness then 47 % of the executives agreed but the rest
disagreed and regarding the question of do they have a strong say about their performance
because of the introduction of self-appraisal system, which was not there before then 87 % of
the executives agreed and said that they also want feedback as it mirrors their self perception.
When the question was asked whether the appraise gets familiarized with the culture, norms
and value system in the organization, because of the regular interaction between appraise and
appraiser then 60 % of the executives agreed and regarding the question, was the last four
months before the appraisal crucial in influencing the assessment of the superior then 53 % of
the executives agreed disagreed. This shows that biasness is practiced in the organization
where superior is showing his favours to those subordinate who becomes loyal to him even if
the subordinate is not a good performer he gets promoted by the recommendation of the
superior. In my survey, it is clear that the executives need a transparent appraisal system so
that they can get feedback about their performance and will do well accordingly.
When the question was asked whether after the introduction of EPAR system, has their
performance been increased as it makes them more dutiful in their job then 77 % of the
executives agreed and regarding the question of whether the EPAR system helping to create a
positive and collaborative environment in their organization then 73 % of the executives
agreed. Then regarding the question of whether the performance appraisal system helps them
in setting future goals or targets then 80 % of the executives agreed.
Then the question was asked whether the evaluation system (EPAR) should be fully
confidential, fully transparent or semi confidential. From the table it is clear that 40 % of the
executives gives the opinion that the appraisal system should be fully confidential, 10 %
say that it should be fully transparent and the rest 50 % say that it should be semi confidential
where the Part – I is open to the employees to mention the responsibilities and tasks or
targets assigned to him and Part – III is confidential where the percentage regarding the traits
are given. Then for the question, how they would feel when their performance was negatively
rated in their job then 57 % of the executives say that it is the key to success, 27 % of them
would feel humiliated but the rest 20 % would have no reactions.
Then the question was asked which criteria should be there in the evaluation process, then
13 % of the executives give their opinion that as an appraiser, they would like to have the
criteria to improve organizational productivity and suggest that not their skill, knowledge and
attitude as well as personal development and proper career planning must be the criteria.
Then 27 % of the executives say that scope to develope subordinates should be one of the
criteria and to evaluate sub-ordinates against standards 13 % give the opinion but the rest 47
% of the say that as an appraiser, they would like to have appraisal of employee’s potential as
the first choice in the evaluation process.
When the question was asked as an appraiser, what things they would opt for in the
appraisal process then 30 % of the executives revealed that promotional avenue of the
organization and as well as of the employees should be one of the aspect in the appraisal
process and 33 % of the executives respondents say that follow up training and development
is the most important thing that an appraiser would opt for and finally 7 % and 30 % of them
say that awareness skills and understanding the organizations expectation from the superior
are respectively more important.
The question when asked what type of changes they would like to see in the
performance appraisal process then 33 % of the executives say that they would like to see
training on performance
appraisal skills and other 30 % of them would like the prior fixation of targets and another 30
% for provisions for pre and post appraisal interviews and the rest 7 % would like to see the
introduction of evaluation by a committee.
When the question was asked for what purposes performance appraisal is currently used in
their organization then 73 % of the executives give their opinion that mainly for the purpose
of deciding promotion, performance appraisal rating is currently used in their organization
and the rest 27 % of them say that the rating is used for the purpose of giving training
and development. The suggestion also came that apart from mutual goals setting,
performance improvement, and preparedness for future manager and for selection that the
rating should be used for.
When the question was asked are they more satisfied with the job when they know about their
performance, then 87 % of the executives agreed and when the question was asked do they
feel overloaded by their job with the fixed by their boss i.e. whether the objectives are
reachable or not, then 53 % of the executives say that it is achievable but the rest 40 % say
that it is difficult to reach and thus become overloaded. That means even if they feel
overloaded they accept the challenge to fulfill the organizational needs. So we can say the
program becomes effective when more than 50 % of the executives agreed that the target is
easier for them to achieve the organizational goal than before.
12. BIBLIOGRAPHY
BOOKS
1. Personnel Management C.B.Mamoria

2. Business study S.A.Siddiqui
3. Training and Development Lynton & Parek
4. Human Resources Management C.B.Mamoria & S.V.Gankar
REFERENCES:
WEBSITE
1. (intranet site of NALCO)

http\\nalcoinsight.com
2. Internet site of NALCO

www.nalcoindia.com
annexure
.
1. First question to the respondents was, whether performance appraisal has led to
improve profitability and more positive attitudes toward profit orientation?
Strongly Disagree Agree Can Not Say Disagree Strongly

Disagree
2. The next question to the respondents was, whether they were satisfied with the
Performance Appraisal Process in the organization i.e. does it actually improve
the morale of the workforce?

Disagree
3. The next question to the respondents was, whether your organization is improving
your job knowledge, Skill, Attitudes at all level of organization.

Disagree
4. The next question to the respondents was, whether their training aids in
organizational development?

Disagree
5. The next question to the respondents was for some managers, whether the training
aids you in understanding and carrying out organizational policies?

Disagree
6. The next question to the respondents was some subordinates, whether these
training programmes are helps the employees adjust to change?

Disagree
7. The next question to the respondents was, whether this Appraisal helps them
individually in making better decisions and effective problem solving?

Disagree
8. The next question to the respondents was, whether their appraisal helps them to
overcome their weakness.

Disagree
9. The next question to the respondents was, whether they have a strong say about
their performance because of the introduction of self-appraisal system, which was
not there before.

Disagree
10. The next question to the respondents was, whether the

appraise gets familiarized with the culture, norms and value
system in the organization, because of the regular interaction
between appraise and appraiser.
Disagree
11. The next question to the respondents was, whether the last four months before the
appraisal crucial in influencing the assessment of the superior.
Disagree
12. The next question to the respondents was, whether after the introduction of EPAR
system, has their performance been increased as it makes them more dutiful in
their job.

Disagree
13. The next question to the respondents was, whether the EPAR system helping to
create a positive and collaborative environment in their organization.

Disagree
14. The next question to the respondents was whether the performance appraisal
system helps them in setting future goals or targets.
Disagree
15. The next question to the respondents was whether the

evaluation system (EPAR) should be fully confidential, fully
transparent or semi confidential.
Disagree
16. The next question to the respondents was how they felt when their performance
was negatively rated.

Disagree
17. The next question to the respondents was, which criteria in the evaluation process,
they would like to have as an appraiser.
Strongly Disagree Agree Can Not Say Disagree

Strongly
Disagree
18. The next question to the respondents was, in the appraisal process as an appraiser,
what things they would opt for. ]

Disagree
19. The next question to the respondents was, whether they would like to see the
following changes in the performance appraisal process.

Disagree
20. The last question to the respondents was for what purposes performance appraisal
is currently used in their organization.
Disagree

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A PROJECT REPORT

UNDER THE GUIDANCE OF

FOR THE PRACTICAL FULFILLMENT OF

DIRECTORATE OF DISTANCE AND CONTINUING EDUCATION

I Miss Dhara Kanungo, Enrollment No.-2103030290900014 A

Guide Name : Mr. Biswo Ranjan Mishra

This is certifying that the project report entitled “PERFORMANCE

It is really great pleasure to have this opportunity to describe the

Date : Name : DHARA KANUNGO

Place : Bhubaneswar Roll No. 2103030290900014

1. NEED FOR THE STUDY

2. OBJECTIVES OF THE STUDY

4. LIMITATINS OF THE STUDY

Performance appraisal is a systematic evaluation performance and potential of an employee

OBJECTIVES OF THE STUDIES

1. To study how the performance appraisal is carried in NALCO.

LIMITATIONS OF THE STUDY

 The period of study is limited.

HISTORICAL BACKGROUND OF THE COMPANY:

The story of National Aluminium Company Limited (NALCO) a government of India

National Aluminium Company Limited (NALCO) is considered to be a turning point in the

National Aluminum Company Limited is primarily engaged in the production of 5

NALCO produced 4,623,278 MT of bauxite and 358,734 MT of aluminum. The

National Aluminum Company Limited is headed by 5 directors -Mr. K.K. Mallick,

TO be a Company of Global reputed In Aluminium Sector

ENJOYING NAVRATNA STATUS

PERFORMANCE HIGHLIGHTS PRODUCTION

Product Unit 2007-08 2006-07

The sales break-up is as follows: (Figures in MT)

Particulars 2007-08 2006-07

DIVIDEND AND APPROPRIATIONS

As per Presidential Directives, steps have been taken for recruitment/promotion of

As on 31.03.2008, out of 7,413 employees (including trainees) on Companies roll, there

Employee involvement through encouragement of more suggestions on production related

VISIT BY PARLIAMENTARY COMMITTEES

- Organizing Animal Health Camps in the peripheral villages.

- Providing drinking water to the villagers. Besides augmentation of water supply to 11

Mines & Refinery Complex

- Construction of short/stay Home Building for destitutes (Swadhara).

- Organizing public awareness programmes for the prevention of gastro-enteritis,

- Organizing the annual tribal cultural festival of Koraput PARAB-2007.

- Best Environment Management and Accident Prevention, Safety Management and

Factories and Boiler, Orissa, bagged by Captive Power Plant.

Project Segment Actual Progress (July, 2008)

A statement giving details of the Conservation of Energy and Technology Absorption is

FOREIGN EXCHANGE EARNING AND OUTGO (ON CASH BASIS)

PARTICULARS OF EMPLOYEES U/S 217(2A) OF THE COMPANIES ACT, 1956

STATUS OF LISTING IN STOCK EXCHANGES

DIRECTORS RESPONSIBILITY STATEMENT

IMPLEMENTATION OF THE RIGHT TO INFORMATION ACT, 2005

NALCO, as a responsible corporate citizen and as a Public Authority, believes in providing

Aluminum Refinery Nov 1994

Captive Power Plant Dec 1995

Bauxite Mines Jan 1996

e) Indira Priyadarshuni Vrikshamitra Award 1994

Bauxite Mines June 1996

Aluminum Refinery Feb 1997