A conceptual study on

PERFORMANCE APPRAISAL METHODS

Implemented at
SARDA METALS & ALLOYS LTD VISAKHAPATNAM

A project report submitted in partial fulfillment of the requirements for the award of
degree of
MASTER OF BUSINESS ADMINISTRATION
By
V. JAGADISH REDDY
(Regd.no.21331E00A8)

Under the guidance of

Dr. M.V.V BHANU

MBA, Ph.D.
Associate Professor

DEPARTMENT OF MANAGEMENT STUDIES MVGR

COLLEGE OF ENGINEERING (AUTONOMOUS)

Approved by AICTE and permanently affiliated to JNTU-GV Accredited by NBA

of AICTE and NAAC-A of U.G.C Chintalavalasa, Vizianagaram – 535005
2021-23
 DECLARATION

I, V. JAGADISH REDDY student of MVGR College of Engineering (A), hereby declare that

this project report entitled “PERFORMANCE APPRAISAL” with reference to SARDA METALS &

ALLOYS LTD region is a bonfire record of work done by me during the course of project work.

This project is in partial fulfillment of the requirement for the award of degree of MASTER OF

BUSINESS ADMINISTRATION by MVGR COLLEGE OF ENGINEERING (A).

Place: Vizianagaram (V. JAGADISH REDDY)

Date: (REG NO: 21331E00A8)

 ACKNOWLEDGEMENT

With great pleasure, I express my deep sense of gratitude to the management of

“Sarda Metals & Alloys Ltd” I convey my sincere thanks to the organization that has

motivated me with their valuable suggestion and helped throughout the project in

permitting to perform various tasks in this esteemed organization.

I express my sincere my thanks to Mr. Prabhat Mohan, Sr. GM and MRS.

Jaya shree, Asst.officer, Mr. Venkatesam, Dy.Mgr, VISHAKAPATNAM for theirkind

co- operation to complete my project work successfully.

I would like to thank Dr. M.V.V BHANU, Associate Professor, Department of

management studies, and MVGR College of Engineering for his valuable guidance

and intellectual suggestions during this project.

I would like to forward my sincere thanks and gratitude to our Dr.G.V.S.S.N.

SANYASIRAJU (Head of the Department) Department of management studies,

MVGR College of Engineering, for their motivation and guidance during the course of

study.

I would like to forward my sincere thanks and gratitude to our principal

Dr. Ramakrishnan Ramesh for availing me the opportunity to do this

project work.

V. JAGADISH REDDY

(REGD NO21331E00A8)
 CONTENT

Introduction 1-3

Need of the study 4

Chapter-1 Objectives of the study 5

Scope of the study 6

Limitations of the study 7

Industry profile 8-11

Chapter-2
Company profile 12-22

Theoretical framework 23-40

Chapter-3
Literature review 41-44

Conceptual study on
performance appraisal
Chapter-4 45-52
methods implemented at
sarada metals&alloys ltd

summary 53-54

Findings 55
Chapter-5
suggestions 56

conclusion 57

Bibilography
 CHAPTER – I
INTRODUCTION
NEED FOR THE STUDY
OBJECTIVES OF THE STUDY
SCOPE OF THE STUDY
LIMITATIONS OF THE STUDY
 INTRODUCTION
The role of Human Resource Management in organizations has been evolving dramatically
in recent times. The days of personnel department performing clerical duties such as record
keeping, paper pushing and file maintenance is over. Human Resource is increasingly receiving
attention as a critical strategic partner, assuming stunningly different, for reaching
transformational roles and responsibilities. Human resource management is a series of integrated
decision that forms the employment relationship. This quality contributes to the ability of the
organization and the employees to achieve their objectives.

In other words, Human Resource Management can be defined as a management function

that manages different phases of human resources such as planning, recruitment, selection,
placement, training and development, performance appraisal and welfare of the employees in the
organization. In any organization, the HR department has to monitor all the undergoing activities
employees in all the departments of the organization.

Taking strategic approach to Human Resource Management involving making the function
of managing human assets the most important priority in the organizations and integrating all
Human Resource Policies and Programs and the framework of a company's strategy In any
organization, the effective utilization of human resources can assist the organizations in achieving
competitive advantage, People have always been central to organizations, but their strategic
importance is growing in today's knowledge-based industries.

An organization's success increasingly depends on the knowledge, skills and abilities and
Key Success Areas (KSA's) of the employees particularly, as they help to establish a set of core
competencies that distinguish an organization from its competitors. With appropriate Human
Resource Policies and Practices an organization can hire, develop and utilize best brains in the
market place, realize its professed goals and deliver results better than other in the present study,
her survey is based on Performance Appraisal System which is one of the important functions in
human Resource Management. In any organization, Performance Appraisal is done depending
upon the overall results of the Individual employees. This Performance Appraisal System will be
planned and managed by the Human Resource Department. Performance Appraisal System can
better be understood by following definition.

In almost every organization, every employee is subjected to periodic appraisal of his/her

performance. This is highly important if the organization’s human resource development
objectives are to be realized, if the organization wants to make best use of its human resource
and if the organization wants to have a scientific and retinal compensation system. An
effective performance appraisal system brings rationality in management. If an organization
1
wants to maximize its effectiveness then the organization must have tool by which it can
discriminate between an effective employee and not so effective employee. Today, appraisal is
not something of a choice left to the wishes of the corporate bosses, nor it is a privilege to be
enjoyed by few businesses’ conglomerates.

Therefore, it is a must for every organization for its survival and growth. The appraisal
practices are in somewhere structured and formally sanctioned and in other instances they are an
informal and integral part of daily activities. Thus, across the human activities someway orother
performance appraisal is conducted in different ways and all of us, consciously or unconsciously
evaluate our own actions from time to time. In social situation, performance is conducted in a
systematic and planned manner to achieve various organizational goals in socialsystem.

Background of Performance Appraisal

Performance appraisal is not something new. The appraisal system existed in early
centuries, though the nature of appraisal was not so formal and the tools used were not so
scientific. In fact the appraisal gained momentum in the post Second World War period with the
advent of professionalization in management. At the early stages the performance appraisal was
done just on the basis of the degree to which a person possessed certain traits, which were
considered essential for effective performance of a particular task. Performance Appraisal of
individuals, groups and organizations is common practice of all societies.

The history of performance appraisal is quite brief. Its roots in the early 20th century can be
traced to Frederick Taylor’s pioneering time and motion studies. But this is not very helpful, for
the same might be said about almost everything in the field of modern human resources
management. As a distinct and formal management procedure of evaluation of work performance,
appraisal system was used dates from the time of the Second World War. Yet in a broader sense,
the practice of appraisal of employee’s performance in different work places is a very ancient art.
Appraisal, it seems, is both inevitable and universal for human activities. In the absence of a
carefully structured system of appraisal, people will tend to judge the work performance of others,
including subordinates, naturally, informally and arbitrarily.

The human inclination to judge can create serious motivational, ethical and legal problems
in the workplace. Without a structured appraisal system, there is little chance of ensuring that the
judgments made will be lawful, fair, defensible and accurate. Performance appraisal systems
began as simple methods of income justification. That is, appraisal was used to decide whether or
not the salary or wage of an individual employee was justified. The process was firmly linked to
2
material outcomes. If an employee’s performance was found to be less than ideal, a cut in pay
would follow. On the other hand, if their performance was better than the supervisor expected, a
pay rise was in order. As a result, the traditional emphasis on reward outcomes was progressively
rejected. In the 1950s in the United States, the potential usefulness of appraisal as tool for
motivation and development was gradually recognized. The general model of performance
appraisal, as it is known today, began form that time.

3
 NEED OF THE STUDY:

Appraising the performance of individuals, groups and organizations is a common

practice of all societies. While in some instances these appraisal processes are structured and
formally sanctioned, in other instances they are an informal and integral part of daily activities.
Consciously or unconsciously evaluate our own actions from time to time. In social interactions.
performance is conducted a systematic and planned manner to achieve widespread popularity in
recent years.

Performance appraisal essential to understand and improve the employee's performance

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

According to the past survey it was noticed that the performance appraisal system in this
company was not up to the mark. Hence there would be scope for giving few suggestions as per
my knowledge to improve the performance appraisal system which was quite essential for the
better performance of the employees.

4
 OBJECTIVES OF THE STUDY

• To understand the concept of performance appraisal in sarda metals & alloys ltd.
• To understand the industry and company profile of the organization.
• To study the literature review on selected topic and to obtain various dimensions.
• To offer suggestions for the growth perspective of the company.

5
 SCOPE OF THE STUDY

• The study covers to know about the objectives and limitations of sarda metals and alloys ltd.
• The study helps to know about the industrial and company profile of Sarda metals & alloys
ltd.
• The study covers and focuses about the theoretical framework and literature review of
Sarda metals & alloys ltd.
• To know about the findings and suggestions of Sarda metals & alloys ltd.

6
 Limitations of the Study

The study has undertaken with the following specific objectives, which provide the framework for the study.

➢ The period of study is about only 5 weeks, which is major constrain.

➢ Some information cannot be issued due to confidential nature.

➢ The perception and attitudes of the respondents may also hurdle to the study

7
 CHAPTER -II
INDUSTRY PROFILE & COMPANY PROFILE
 INDUSTRY PROFILE – METALALLOYSMARKET

Metal Alloys Market was valued at around USD 291 billion in 2021 and is anticipated to grow at
a CAGR of 5.1% from 2022 to 2030 driven by the rapidly rising transportation sector along with
increasing investments in construction projects across the globe. With respect to volume, the
industry size may register a CAGR of 4.5% through2030, with a targeted projection of 170,031.0
kilo tons.

Developments in additive manufacturing coupled with significant growth in flexible packaging

are further offering new opportunities for product expansion. Metal alloys are metallic substances
formed by fusing or mixing two metals, or a non-metal and metal, thereby obtaining a desirable
characteristic including strength, hardness, lightness, etc. The unique combination of properties
provided by metal alloys for a broad range of applications including transportation, construction,
machinery, and packaging will support the metal alloys market over the forecast timeframe.

Metal alloys including stainless steel and aluminum are widely used in several applications owing
to their superior corrosion resistance, good thermal & electrical properties, strength, and other
properties. The rising use of aluminum alloys in transportation along with the growth in
industrialization in developing economies around the globe will drive market growth.
The construction industry is another major consumer of metal alloys with a wide range of
products including structural sections, girders, and rods & wires. Steel, aluminum, and other
including brass & titanium are widely used in the construction industry. Steel alloys are mainly
8
used in structural applications such as bridges, highways, buildings, and other civil engineering
works.
The growing transportation and construction sectors will boost the demand for
aluminumalloys

The aluminum alloys segment is expected to generate nearly USD 229 billion by 2030, growing
at CAGR of around 4.5% from 2022 to 2030. Aluminum alloys are extensively used in the
automotive & transportation, aerospace & defense, marine, and other end-use industries. The
growing production of automotive vehicles across the globe supporting the consumption of these
alloys.

Moreover, aluminum alloys are highly resistant to corrosion compared to other metals, boosting
the demand for aluminum alloys from various end-use industries. Aluminum alloys are broadly
used across the construction industry for producing different materials, such as doors, windows,
panels, etc., due to their lightweight and high-strength properties.

The metal alloys market from casting process is expected to grow at a considerable rateat a
CAGR of nearly 5% from 2022 to 2030 owing to the use of this process in producing complex
structures in one part. Several aluminum & stainless-steel alloy casting products are widely used
in transportation, machinery, and construction applications. The casting process offers strength to
the parts. Furthermore, other materials, such as magnesium alloy casting products, are widely
used in power tools & sporting goods and the transportation sector.
9
 Transportation application dominates the market with the integration of lightweight
metalalloys in vehicle parts:

By Material

• Stainless Steel Alloys

• Aluminum Alloys
• Bronze Alloys
• Nickel Alloys
• Others
By Process

• Casting
• Hot & Cold Rolling
• Others
By Application

• Transportation
• Construction
• Packaging
• Machinery
• Electrical
• Others
By Region

• North America
• U.S.
• Canada
• Europe
• Germany
• France
• Italy
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• Spain
• UK
• Russia
• Asia Pacific
• China
• India
• Japan
• South Korea
• Australia
• Malaysia
• Latin America
• Brazil
• Mexico

Top 10 metal and alloy companies:

• Tata Steel Ltd
• JSW Steel Ltd
• Steel Authority of India Ltd
• Essar Steel India Ltd
• Jindal Steel & Power Ltd
• Rastriya Ispat Nigam Ltd. (RINL)
• Electro Steel Ltd.
• Jindal Stainless Ltd
• Jindal Stainless (Hisar) Ltd

Key players:

• Natarajan Chandra Sekaran

• Sheshagiri Rao MVS
• KumarMangalam Birla
• Soma Mondal

11
 COMPANY PROFILE-SARDA METALSAND ALLOYS LTD

SARDA GROUP
The journey of Sarda Group began in a small town named Rajnandgaon in the state of
Chhattisgarh, India. The first venture of the group was trading of steel & agricultural implements.
Today we are headquartered in Raipur, Chhattisgarh, India and have a recognized presence in
diversified sectors like
– Iron & Steel, Ferro Alloys, Power Generation (Thermal/Hydro), Horticulture, Seeds and Dairy.
With its firm belief in benchmark product quality, customer centric approach, people focus,
ethical business practices and good corporate citizenship, every member of the group is
committed to delivering valueto all its stakeholders.

SARDA ENERGY & MINERALS LTD. (SEML)

The flagship company of the Sarda Group was incorporated in 1973 and is listed on both BSE
(504614) and NSE (SARDAEN), is one of the lowest cost producers of steel having Sponge Iron-
capacity of 360,000 MT with 2 X 500 MTPD and 2 X 100 MTPD rotary kilns, Billets - annual
billet production capacity is 200,000 MT, Pellets - 0.6 million tons per annum, Wire Rod, Ferro
Alloys – installed capacity of 60 MVA, Power Plant of 3 x30 MW, Eco Bricks) and one of the
largest manufacturers and exporters of ferro alloys. A THREE STAR EXPORT HOUSE,
recognized by the Ministry of Commerce & Industry, Govt. of India, SEML has become the
supplier of choice for many domestic and international customers across more than 30 countries.
SEML foresaw the importance and emergence of energy and minerals as two critical ingredients
for developing economies and particularly for India. Today, it is one of the very few companies
to become completely self-sufficient in terms of its energy requirements and is on its way to
achieve self- sufficiency in other mineral resources. The company has acquired iron ore and coal
mines in India and is aggressively looking for mineral resources across the globe.

SARDA METALS & ALLOYS LTD. (SMAL)

A 100% subsidiary of Sarda Energy & Minerals Ltd. (SEML),
SMAL was set up as a greenfield state-of-the-art
complex near Vishakhapatnam, A.P, India in 2013-14 with 1 X 80 MW Captive Power Plant and
2 X 36 MVA Ferro Alloys Submerged Arc Furnaces In 2022 December a new furnance was
added now it has 3 X 36MVA Ferro Alloys Sumbmerged Arc Furnaces.

This unit is envisaged to become the most technologically advanced, sustainable and the largest
single location Ferro Alloy complexes in India. Spread over an area of 281 acres in APIIC

12
Kantakapalli Industrial Park, the plant is strategically located just 40-45 KM from
Vishakhapatnam & Gangavaram Ports and only 2 Kms from Kantakapalli Railway siding on
Chennai-Kolkata main line.
As technology plays a key role in delivering highest quality product, SMAL has partnered with
state- of-the-art technology providers such as Tenova Pyromet, Tamini, SGL Carbon, RHI etc.
for the construction of its 36 MVA furnaces. Similarly, for its Captive Power Plant it has
partnered with Siemens, Germany for Turbine & Generator and with Doosan Babcock, South
Korea for Boiler.
Registered in 2011, Sarda Metals & Alloys Ltd. has made a name for itself in the list of top
suppliers of India. The supplier company is located in Vizianagaram, Andhra Pradesh and is one
of the leading sellers of listed products. Sarda Metals & Alloys Ltd. Is listed in trade India’s list
of verified sellers offering supreme quality of Silicon manganese etc. Buy in bulk from us for the
best quality products and service.
The project is expected to be operational by the end of FY 2022-23. The power generation was
lower than previous year because of poor demand and consequent back down by the state
distribution companies with whom the company had entered into supply agreement. Sarada
Metals & Alloys Limited is incorporated in India with its registered office in Mumbai,
Maharashtra.
During the year, power generation was 488.89 MU as compared to 612.83 MU in the previous
year.The ferro alloys production (including Mn Slag) stood at 61,578 MTs as against 49,955 MTs
in the previous year. The power generation was lower than previous year because of poor demand
and consequent back down by the state distribution companies with whom the company had
entered. However the Company was successful in maintaining the growth rate in exports wherein
it has achieved Exports of Rs. 201 crores as against Rs. 119 crores in the PY. The Company has
also received Two Star Export House status from Director General of Foreign Trade, Ministry of
Commerce & Industry, Government of India. During the year Company reported loss of Rs.
17.74 crores as against loss of Rs. 3.82 crore in P.Y. mainly due to drastic reduction in power
offtake by Telangana DISCOM and outage of one of the furnaces of the company for almost 3
months. The company plans to set-up power intensive industrial unit(s) in steel /ferro alloys for
captive consumption of surplus power for long term sustainability.

13
 VISION, MISSION & VALUES:
The most important role of leaders is to understand in depth the soul of the organization’s
VISION,
MISSION, AND VALUES and percolate it down.
SMAL has inherited the VMV from its parent company SEML, but of late we found it to be not
relevant to the present scenario, and hence a robust exercise on redefining the VMV was carried
out by the management by taking help of external agency (Visisht Corporate Growth Center) and
a 2-day outbound workshop was organized for the top management to involve them to redefine
our VMV andto practice and implement the same appropriately.
VISION

To become the most Preferred, Sustainable and Largest Manganese Alloy producer in India.

MISSION

To build globally competitive and best in class products and deliver highest value to our
stakeholders and communities.
To innovate and inspire people for environment & resource conservation.

VALUES

Tenacity: We set bold targets for ourselves by challenging the status-quo and preserving with
grit till we achieve them and set new benchmarks
We create mutual respect and trust by being fair, transparent, ethical and honest with our
customers, employees, partners, statutory authorities and communities
Team Work: We collaborate with cross functional teams to solve everyday challenges and
creating opportunities for individual and collective growth and maximizing team performance
Timeliness: We deliver on commitments made to our customers and colleagues. We value each
other’s time and endure to speed up decision making across our value chain
Transformation: We are agile and transform ourselves into a better us, each and every day by
1. Kaizen to improve our business operations through continuous learning & innovation
2. Genchi Genbutsu practicing onsite hands-on experience by going to the source, finding
facts, building consensus, making correct decisions & achieving goals as fast as possible.
Various channels and modes like communication through emails, employee group postings,
displays at various work places, and TTT programs to train our mid-level leaders who further
train the bottom-line

14
employees on the company VMV. Leaders do not let go off any opportunity of interaction with
the employees and customers to communicate our VMV, either in employee gathering, customer
interactions, client visits, and other external agencies meetings.

Special initiatives viz., Town Hall and HR Connect program provides cohesive and congenial
thought process and feedback sharing platform, which further helps in top-down and also bottom-
up knowledgesharing and understanding of the company VMV.

TPM

To maintain an Agile environment, management has come with the concept of creating a
Business Excellence Center and hired 10 employees from varied academic background from
Premiere Institutions, which cater to the needs of business innovation & optimization. Major
Projects undertaken by BEC. The BEC team are at the forefront in assisting implementation of
TPM activities across the organization under the guidance and support of CII.

As business value model and culture, we believe in our core values of ethical business practices,
integrity, respect for people, and transparency. The prime goal of SMAL has been to ensure
fairness to all key stakeholders through transparency, full disclosure, empowerment of employees
and collective decision making.

INITIATIVES
Various initiatives that enable leaders and employees to come together to discuss upon issues of
concern and/or other beneficial strategies for the organization. They are

Works Committee: Consisting of FAD with 15, PP with 18 members periodically meet to
discuss over varied range of topics for betterment of self and organization.
Open Door Policy: Encourages all category of workforce to interact with DMD and share their
ideas, grievances, professional/personal.

15
 Suggestion Scheme: Any employee who has a suggestion that can improve the organization
performance and cost saving and other parameters as defined in policy are encouraged to submit
their suggestions and a committee decides on the rewards.
HR Connect
Grievance cell
Star Employee Award
Celebratory meetings
Customer-centric behavior is one of the must have competency for leaders as defined in the
competency framework.

Review meetings every week (which includes Top Management)

The first phase of accessibility to employees from the top management is ensured through these
reviewmeets where they access department wise details involving the head of departments.

The purpose of the review meetings is to reach mutually agreed conclusions about the
development ofthe individual and the organization and performance thereof

Management reviews

• The safety related aspects and reports of the whole week

• The department wise data and objectives analysis
• IMS related updates shall be checked for updates
• Any management programs shall be reviewed and taken decision on

Management involves in meetings like IMS meeting, Audit meetings, Apex meetings, MRM
reviewsensure their accessibility & respond positively to people.

REWARDS & RECOGNITIONS:

Sarda Metals & Alloys Ltd. has received “Three Star Export House” status from Director
General of Foreign Trade, Ministry of Commerce and Industry, Govt. Of India
EEPC Award: Award for Special Contribution: Highest Growth in Export during 2016-17
“4 STAR RATING” in recognition to EHS Practices in the CII-SR EHS Excellence Awards for
the year 2020. Received Silver Trophy in CII-SR EHS Excellence Award, 2021 (equivalent to 5
STAR rating as per earlier assessment criteria).
DNV.GL certified SMAL with
o Quality management system standard of ISO 9001: 2015,
o Environmental system standard of ISO 14001: 2015,
o Occupational health & safety system standard ISO 45001: 2018
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1st Prize in National Breakthrough Kaizen Competition held by CII- IQ in 2020
Jury award in National Breakthrough Kaizen competition in Champions Trophy in 2020
Silver award in Renovative category in 41st CII National Kaizen competition in 2021
Platinum award in Innovative category in 41st CII National Kaizen Competition in 2021
Best Safety Performer award at CII Andhra Pradesh Industrial Safety Excellence Award in 2021
GPTW certified in 2020
Gold Award in CSR from Grow Care India in 2020.

PRODUCTS

Sarada Metals & Alloys Ltd is one of the leading integrated steel producers using the direct
reduction process for steel making. SMAL‟s annual DRI making capacity is 360,000MT and
crude steel making capacity is 240,000 MTPA. SMAL is also one of the largest exporters of
ferro alloys from India with an annual production capacity of 82,500 MT. The captive iron ore
mines provide SMAL a robust competitive advantage and guarantees continued supply of critical
inputs at all times.

1) MANGANESE ALLOYS

Ferro Alloys are high added products usually used for manufacturing of mild steel and special
steel. SMAL is one of the largest producers and exporters of manganese based ferro alloys with
exports to more than 60 countries. For its contribution to ferro alloys export, SMAL has also been
awarded Star- Export house status from the Government of India. Recently SMAL has also been
awarded by EEPC (Engineering Export Promotion Council) by Regional Export award in the
category of star performer for the FY 08-09. The ferro alloys division constitutes the bulk of
SMAL top-lines as bottom-line.

2) CAPTIVE POWER GENERATION

In 2001, Sarda Group forayed into captive power generation being one of the first in the private
steel sectors in central India. Since then, Synergy in Energy has been the Groups’ mantra for self
sufficiency in power requirements and its growth. Power is one of the key inputs in production of
both steel and ferro alloys and today the Group has an installed Captive Power Generation
capacity of 170 MW.

In 2013, SMAL commissioned a 1x80 MW Captive Power Plant (CPP) with a Single BTG Set
based on Pulverised Fuel technology in its state-of-the-art Ferro complex at Visakhapatnam.
Environment Conservation has been at the core of selecting technologies and our partners. SMAL
has chosen two extremely environmentally friendly technologies for its 1x80 MW CPP – Air
17
 Cooled Condenser & Dry Bottom Ash handling system which have led to almost 97% reduction
in water consumption as compared to other similar sized traditional units. Our technology partners
in this project are:

• Turbine & Generator: Siemens, India & Siemens, Germany

• Boiler: Doosan Babcock, Korea / Enmass. GB, India
• Air Cooled Condenser: GEI, India
• Bottom Dry Ash Handling System: Magaldi, Italy
• 220 KV GIS Sub-Station: Siemens, Germany

OTHER PRODUCTS

Sarda Metals & Alloys Limited is Zero Solid Waste / Effluent Discharge facility. Hence, all the
by- products/waste generated are recycled and converted into usable products especially for the
construction sector. This initiative is having a substantial socio-economic impact in creating
micro and small enterprises and providing livelihoods to more than a one thousand people.

Two such by products generated in our production processes are – Fly Ash/Bottom Ash & SiMn Slag.

3) FLY ASH: It is generated as a by-product of burning coal. It is utilized in production of eco-

bricks which is an environmentally better product than a clay/red brick. Two properties of the
fly ash – fineness and pozzolanic properties help in producing stronger bricks with lesser
consumption of cement.
4) SIMN SLAG: Traditionally it is used as a landfill. However, we granulate it by passing it
through a very high-pressure water jet to create equal sized (~98%) fine granules. These slag
granules are utilized as a filler material in eco-bricks to make it lighter and eventually
reducing the steel requirement by making lighter structures. Our SiMn granulated slag quality
is one of the finest in the industry and is being highly sought after by local brick
manufacturers.

INNOVATION

1) Briquetting
Sarda Metal & Alloys has been striving for innovation related to the Ferroalloy industry.SMAL is
the first industry to Innovate the process to reuse the GCP dust, Raw material fines and Coke
fines in the form of briquettes. By doing so SMAL has been able to save the environment by
reutilizing the not so environment friendly GCP dust. Moreover, GCP dust also contains nearly
19% manganese, hence by utilizing the GCP dust, SMAL has utilized potential to conserve
natural resources by reducing manganese ore usage and also contributed for the cost saving. With

18
this innovative process there is zero hazardous waste generated which is common for other
processes such as Sintering.

SMAL believes in mutual growth of the industry to achieve the same SMAL is also opened to
consult on the use of GCP dust in the form of Briquettes to other ferroalloy industries.

2) Pig Casting Machine

In Ferro Alloy industry, SMAL is one of the first Indian industry to use pig casting machine for
the finished material handling without the use of any hydraulic setup. At SMAL, metal is taken
directly from the furnace and converted to finished product of required sizes with minimal
manual intervention using advantages of the Pig casting machine.

EHS POLICY
We at Sarda Metals & Alloys Ltd. (SMAL) intend to be a QEHS Industry Leader across all of our
Business activities, through continuous improvement in Environment Protection and
Conservation, Health & Safety Standards and Quality Systems, and thereby exceed customer
satisfaction.

We strive to:

➢ Conduct our business sustainably through adoption of world-class, environmentally

friendly andenergy efficient technologies.
➢ Assess, manage, and reduce environmental impact and deal proactively with climate
change byefficient use of natural resources and promoting waste avoidance, reuse &
recycling measures.
➢ Promote a positive health and safety culture within the organization through effective
communication, participation and consultation with employees, workers and business
partners.
➢ Identify, monitor, and review occupational health and safety hazards and proactively
mitigate therisks by adhering to best health and safety practices.
➢ Deliver high quality products and services which exceed customer expectations while
creatingvalue for all our stake holders.
➢ Adopt innovation in all our business process thinking to constantly improve us quality
management system.
➢ Comply with all applicable and prevalent statutory, regulatory, and legal requirements and
exceedwherever possible.
➢ Facilitate awareness, skill up gradation, knowledge enhancement, training, and
necessaryresources for enabling fulfilment of the above QEHS policy.

19
INVESTOR CENTER

SARDA Group consists of six (6) listed companies (NSE & BSE) under the banner and are
committed to protect the interests of its valuable investors. We take it as our strategic
management responsibility to integrate finance, communication, marketing and securities law
compliance to enable the most effective two-way communication among the companies &
investors (individual & institutional).

CSR ACTIVITIES

At SARDA, we recognize that our future hinges to a great extent on responsible ownership of our
natural resources, our people, our communities and the environment in which we operate. We
realize that with success comes responsibility and for us, responsibility translates to taking
ownership in the betterment and development of the world around us.

Education, clean water, and sanitation are the three areas where the basic infrastructure is non-
existent, and we have committed ourselves to fill this gap. We have adopted numerous primary
schools, middle schools and high schools in villages close to our factory, and have provided them
basic infrastructures such as classrooms, books, stationary and clean drinking water. We work
passionately to provide sanitation facilities for villages to improve the hygiene conditions. Apart
from this we regularly conduct free medical check-ups from time to time in neighbouring
villages. These activities and projects also provide our employees and their families a chance to
be the part of change that we want to see in our surrounding. Activities done by SMAL to bring a
sustainable change in the society are as follows:

Health - Mega medical camps

Drinking water – RO plant
Drinking water & Yoga class at ZPH school
COVID Pandemic – Initiatives
SKILL Development – Computer Centre
SKILL Development – Tailoring Centre
Tree plantation at Kantakapalli

WORK CULTURE
SMAL has been certified as a "GREAT PLACE TO WORK" by the Great Place to Work
Institute and is credited with being among the first Ferro alloys company in India to achieve this
certification.

We pride ourselves on being an equal opportunity employer and not discriminating based on
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race, caste, religion, colour, ancestry, gender, marital status, sexual orientation, age, nationality,
ethnic origin, or disability. Employee policies and practices are administered in a manner that
ensures all decisions relating to promotion, compensation and any other form of reward and
recognition are based entirely on merit.

We encourage a high-performance culture and support it through various rewards and

recognitions. Westrive to ensure a safe, healthy, clean, and ergonomic working environment for
our employees, contractors and anyone affected by our activities. We aspire to be the health and
safety benchmark for the global ferro alloys industry.
Learn and Grow Career growth for employees has been a key focus at SMAL. To ensure learning
and growth, we have tied up with various institutes. We also collaborate with CII and other
institutions to impart various behavioural and management training to our employees.

Work-Life Balance
We believe our employees can contribute to their full potential if they lead a happy, healthy, and
balanced life. At SMAL, an individual is not just an employee, but a member of the SARDA
family and a part of the bigger journey that is full of opportunities which help our employee
discover his/her true potential. All SMAL employees are encouraged to lead life in their own
unique way.

BOARD OF DIRECTORS:

NEERAJ JUGALKISHORE SARADA

MANISH JUGALKISHORE SARADA
SONAL NEERAJ SARADA

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ORGANISATION STRUCTURE

22
 CHAPTER- III
THEORETICAL CONCEPT
 INTRODUCTION

The process of human resource development helps the employees to acquire and
develop technical, managerial and behavioural knowledge, skills, abilities, and moulds
the values, beliefs and attitudes necessary to perform present and future roles. The
process of performance appraisal helps the employees and management to the level of
employee's performance compared to the standard/predetermined level.

According to Heyel lt is the process of evaluating the performance and

qualifications of the employees in terms of requirements of the job for which he is
employed, for purposes of administration including placement, selection for promotions,
providing financial rewards and other rewards and other actions which require
deferential treatment among members of group as distinguished from actions affecting all
members equally. Appraising the performance of individuals, groups and organization is
a common Practice of all societies. While in some instances these appraisal processes
are structured and formally sanctioned, in other instances they are an informal and
integral part of daily activities.

MEANING

Appraising the performance of individuals, groups and organizations is a common of

till societies, while in some instances these appraisal processes are structured and formally
sanctioned. in other instances, they are an informal and integral part of daily activities, in
social interactions performance is conducted a systematic and planned manner to achieve
wide spread popularity in recent years.

Performance appraisal is defined as "it is the process of determining and

communicating to an employee how he or she is performing on the job and ideally
establishing a plan of improvement. Performance appraisal is one of the best methods for
evaluating the behaviour of employee in the work spot, normally including both the
quantitative and qualitative aspect of job performance.

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 EVOLUTION OF PERFORMANCE APPRAISAL
The term performance management gained its importance from the times when the
competitive pressures in the market place started rising and the organizations felt the need of
introducing a comprehensive performance management process into their system for improving the
overall productivity and performance effectiveness.
The performance management process evolved in several phases.

1. First Phase: The origin of performance management can be traced in the early 1960’s when the
performance appraisal systems were in practice. During this period, Annual Confidential Reports
(ACR’s) which was also known as Employee service Records were maintained for controlling the
behaviors of the employees and these reports provided substantial informationon the performance of
the employees. Any negative comment or a remark in the ESR or to adversely affect the prospects
of career growth of an employee. The assessments were usually done for ten traits on a five or a ten
point rating scale basis. These traits were job knowledge, sincerity, dynamism, punctuality,
leadership, loyalty, etc. The remarks of these reports were never communicated to the employees
and strict confidentiality was maintained in the entire process. The employees used to remain in
absolute darkness due to the absence of a transparent mechanism of feedback and communication.
This system had suffered from many drawbacks.
2. Second Phase: This phase continued from late 1960’s till early 1970’s, and the key hallmark of this
phase was that whatever adverse remarks were incorporated in the performance reports were
communicated to the employees so that they could take corrective actions for overcoming such
deficiencies. In this process of appraising the performance, the reviewing officer used to enjoy a
discretionary power of overruling the ratings given by the reporting officer. The employees usually
used to get a formal written communication on their identified areas of improvements if the rating
forany specific trait used to be below 33%.
3. Third Phase: In this phase the term ACR was replaced by performance appraisal. One of thekey
changes that were introduced in this stage was that the employees were permitted to describe their
accomplishments in the confidential performance reports. The employees wereallowed to describe
their accomplishments in the self appraisal forms in the end of a year. Besides inclusion of the traits
in the rating scale, several new components were considered by many organizations which could
measure the productivity and performance of an employee in quantifiable terms such as targets
achieved, etc. Certain organizations also introduced a new section on training needs in the appraisal
form. However, the confidentiality

24
 element was still being maintained and the entire process continued to be control oriented instead
of being development oriented.
4. Fourth Phase: This phase started in mid 1970’s and its origin was in India as great business
tycoons like Larsen & Toubro, followed by State Bank of India and many others introduced
appreciable reforms in this field. In this phase, the appraisal process was more development driven,
target based (performance based), participative and open instead of being treated as aconfidential
process. The system focused on performance planning, review and developmentof an employee by
following a methodical approach. In the entire process, the appraisee (employee) and the reporting
officer mutually decided upon the key result areas in the beginning of a year and reviewed it after
every six months. In the review period various issues such as factors affecting the performance,
training needs of an employee, newer targets and also the ratings were discussed with the appraisee
in a collaborative environment. This phase was a welcoming change in the area of performance
management and many organizations introduced a new HR department for taking care of the
developmental issues of the organization.
5. Fifth Phase: This phase was characterized by maturity in approach of handling people’s issues. It
was more performance driven and emphasis was on development, planning and improvement.
Utmost importance was given to culture building, team appraisals and quality circles were
established for assessing the improvement in the overall employee productivity.

The performance management system is still evolving and in the near future one may expect a far
more objective and a transparent system.

Best Definitions of Performance Appraisal

Provided by Gomez Meija, Slabbert, and Swanepoel. All HR professionals should know these
names.
“Performance appraisal is one of the important & critical functions of staffing in management.
Human behaviour is a complex phenomenon difficult to anticipate accurately”.
“Any individual joins an organization to satisfy his career objectives. But the organization has
defined its own goals. Which needs to be incompatible with the individual goals”.
“Maybe the goals of the individual and organization are extremely contradictory. Then conflict will
arise between them”.
“An individual’s personality shouldn’t be suppressed. At the same time, organization goals hold
be achieved. Constant monitoring is required for the entire process of achieving goals”.

“After regular intervals, the consistent performance of an individual needs to be assessed.

Accordingly mapping of the desired behaviour could be maintained”.

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HISTORY

Employees appraisal techniques are said to have been used for the first time during thefirst
world war, when, at the instance of Walter Dill Scott the US army adopted the Man to Man
“rating system for evaluating military personal. Earlier employee plans were called merit rating
programmers which continued to be so called up to the fifties. In the early fifties, attention began
to be devoted to the performance appraisal of technical, professional and management personal.

26
 NEED OF PERFORMANCE APPRAISAL
1. Provide information about performance ranks basing on which decision regarding salary
fixation conformation, promotion, transfer and demotion are taken.
2. Provide information, which helps to counsel the subordinates.

3. Provide information to diagnose deficiency in employee regarding skill, knowledge, training

and development needs and to prescribe the means for employee growth provides information
for correcting placement.

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CHARACTERSTICS OF PERFORMANCE APPRAISAL
1. It should be simple and understandable by the employees. Any complications need to be
avoidable.
2. It should be suitable to be adopted for appraisal at regular intervals because periodic
appraisal enables the employees to improve.
3. It should create the atmosphere of mutual understanding and confidence.

4. The system should be capable of giving equitable justice to all employees.

Therefore,it should be objective and free from personal bias.
5. The employees should be taken in confidence while preparing performance appraisal.

6. The system should be suitable to the organization from the points of its structure, needs
and more essentially based on latest development in the area.
7. It should be able to fulfill the desired purpose by locating potential for promotion,
increments, placements, transfers etc.
8. Special training is given to evaluated” for making him more impartial and freer from bias.
9. Negative appraisal of any employee should be immediately communicated to him so that
he can adopt measures for improvement.
10. The employee should be allowed to go in appeal in case his performance appraisal is
negative if he is not satisfied. By this the management will win the confidence of the
employees.
11. The performance appraisal system should not be aimed at harassing the employees who
are vital human resources and play very important role in achieving organizational goals.
On the other hand the top bosses should be made aware that performance appraisal is
aimed at improving performance, organizational effectiveness and to accomplish
organizational goals.

28
 SCOPE OF PERFORMANCE APPRAISAL

The scope of performance management and appraisal should include the following:

1. Provide employees with a better understanding of their role and responsibilities.

2. Increase confidence through recognizing strengths while identifying training needs to

improve weaknesses.
3. Improve working relationships and communication between supervisors and subordinates.

4. Increase commitment to organizational goals; develop employees into future supervisors.

5. Assist in personnel decisions such as promotions or allocating rewards.

6. Allow time for self-reflection, self-appraisal and personal goal setting.

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 COMPONENTS OF PERFORMANCE APPRAISAL:

1. Performance Planning: Performance planning is the first crucial component of any performance
management process which forms the basis of performance appraisals. Performance planning is
jointly done by the appraisee and also the reviewee in the beginning of a performance session.
During this period, the employees decide upon the targets and the key performance areas which
can be performed over a year within the performance budget., which is finalized after a mutual
agreement between the reporting officer and the employee.
2. Performance Appraisal and Reviewing: The appraisals are normally performed twice in a year
in an organization in the form of mid reviews and annual reviews which is held in the end of the
financial year. In this process, the appraisee first offers the self filled up ratings in the self
appraisal form and also describes his/her achievements over a period of time in quantifiable
terms. After the self appraisal, the final ratings are provided by the appraiser for the quantifiable
and measurable achievements of the employee being appraised. The entire process of review
seeks an active participation of both the employee and the appraiser for analyzing the causes of
loopholes in the performance and how it can be overcome. This has been discussed in the
performance feedback section.

3. Feedback on the Performance followed by personal counseling and performance

facilitation: Feedback and counseling is given a lot of importance in the performance
management process. This is the stage in which the employee acquires awareness from the
appraiser about the areas of improvements and also information on whether the employee is
contributing the expected levels of performance or not. The employee receives an open and
very transparent feedback and along with this the training and development needs of the
employee is also identified. The appraiser adopts all the possible steps to ensure that the employee
meets the expected outcomes for an organization through effective personal counseling and
guidance, mentoring and representing the employee in training programmes which develop the
competencies and improve the overall productivity.
4. Rewarding good performance: This is a very vital component as it will determine the work
motivation of an employee. During this stage, an employee is publicly recognized for good
performance and is rewarded. This stage is very sensitive for an employee as this may have a
direct influence on the self-esteem and achievement orientation. Any contributions duly
recognized by an organization helps an employee in coping up with the failures successfully and
satisfies the need for affection.

30
5. Performance Improvement Plans: In this stage, fresh set of goals are established for an
employee and new deadline is provided for accomplishing those objectives. The employee is
clearly communicated about the areas in which the employee is expected to improve and a
stipulated deadline is also assigned within which the employee must show this improvement. This
plan is jointly developed by the appraisee and the appraiser and is mutually approved.
6. Potential Appraisal: Potential appraisal forms a basis for both lateral and vertical movement of
employees. By implementing competency mapping and various assessment techniques, potential
appraisal is performed. Potential appraisal provides crucial inputs for succession planning and job
rotation.

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PURPOSE OF PERFORMANCE APPRAISAL

1. Performance appraisal aims at attaining the different purposes.

2. To help the supervisors to have a proper understanding about their subordinates.

3. To guide the job, change with the help of continuous ranking.

4. To facilitate fair and equitable compensation based on performance

5. To provide information for making decisions regarding layoff.

6. To ensure organizational effectiveness through correcting employee for standard and

improvedperformance, and change employee behaviour.

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OBJECTIVES OF PERFORMANCE APPRAISAL
1. Role clarity
2. Self-assessment by employees
3. Understanding strengths & weakness
4. Identifying training and development needs
5. Identifying potential
6. Better understanding between appraiser & appraise
7. Recognizing achievements
8. Goal setting
9. Improved organizational performance

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BENEFITS OF PERFORMANCE APPRAISAL

Key Result Areas (KRAs) Or Key Performance Areas (KPAs) Clearly defined and
communicated.
1. Improved team work and leadership

2. Better understanding of the tasks performed by each employee.

3. Defining of KRAs in the beginning, long term plans can be developed.

4. Training and developmental needs can be more clearly identified.

FOR THE APPRAISER

1. Better relationship with subordinates.

2. Can identify ideas for improvement

3. Increased sense of involvement

4. Can define departmental objectives and plans in better way.

FOR THE APPRAISEE

1.Once the KPAs or KRAs are defined gets the opportunity to work independently.
2.Increased motivation.
3.Increased sense of belongingness
4. Increased sense of commitment
5. Opportunity to discuss work related problems with the superior

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MOTIVATION AND SATISFACTION
Performance appraisal can have a profound effect on levels of employ motivation and
satisfaction-for better as well as for worse.
Performance appraisal provides employees with recognition for their work efforts. Absenteeism
and turnover rates in sum organizations might be greatly reduced it more attention was paid to it.
Regular performance appraisal, at least is a good start.
TRAINING AND DEVELOPMENT
performance appraisal offers an excellent opportunity perhaps the best that will occur for a
supervisor and subordinate to recognize and agree upon individual training and developmental
needs. During the discussion of an employee’s work performance, the presence or absence of
works skills can become very obvious — even to those who habitually reject the idea of training
for them.
RECRUITMENT AND INDUCTION
Appraisal data can be used to monitor the success of organization's recruitment and induction
practices. For example, how well are the employees performing who were hired in the past two
years? Appraisal data can also be used to monitor the effectiveness of changes in recruitment
strategies by following the yearly data related to new hires and sufficient numbers on which to
base the analyses) it is possible to assess whether the general quality of the work force is
improving, staying steady, or declining.
EMPLOYEE EVALUATION
Though often under stated or even denied, evaluation is a legitimate and major Object Of
performance appraisal. But the meet evaluates (i.e., to judge) is also an ongoing source of
tension, since evaluative and developmental priorities appear to frequently clash. Yet at its most
basic level, performance appraisal is the process of examining and evaluating the performance of
an individual.

METHODS/TECHNIQUES OF PERFORMANCE APPRAISAL

With the evaluation of development of appraisal system, a number of methods or techniques of
performance appraisal have been developed., The impotent among them are Divided into two
types. Traditional methods and modern methods.

35
 TRADITIONAL METHODS
Traditional methods are again divided into:
1. Graphic rating scales.
2. Ranking method

3. paired comparison method.

4. Forced distribution method.

5. Checklist method.

6. Essay or free form appraisal

7. Group appraisal.

8. Confidential report

MODERN METHODS:
1. Behaviorally Anchored Rating scale (BARS).

2. Human resource Accounting.

3. Management by Objectives (MBO).

4. Psychological Appraisal.

TRADITIONAL METHODS:
Graphic Rating Scales:
Graphic rating scales compare individual performance to an absolute standard. In judgments
about performance are recorded on a scale. This is the oldest and widely used technique. his
method also is known as linear rating scale or simple rating scale. Rating scales are of two types,
viz., continues rating scale and discontinues scales. In continues order like 0, l, 2, 3, 4 and 5 and
in discontinues scale the appraiser assigns the point to each degree. performance regarding each
character is known by the points given by the ratter. points given by the ratter to each character
are added up to find out the overall performance. Employees are ranked on the bases of total
points assigned to each one of them.
Ranking Method:
Under this method the employees are ranked from best two worst on some characteristics. The
ratter first finds the employee with the highest performance and the employees with the lowest
performance in that particular job category and rates the former as the best and the later as the
poorest. Ranking can be relatively easy and in expensive, but its reliability and validity may be

Open to doubt. It may be affected by ratter bis or varying performance standards. Ranking also

36
means that somebody would always in the back bench. It is possible that the low ranker
individual in one group may turn out to be superstar in another group. one important limitations
of the ranking method are that the size of the difference between individual is not well defined
For instance, there may be little difference between those ranked third and fourth.

Paired Comparison Method:

This method is relatively simple. the appraiser ranks the employee by comparing one employee
with all other employee in the group, one at a time. As illustrated this method results in each
employee being given a positive Comparison total and a certain percentage of the total positive
evaluation.
Forced Distribution Method:
The ratter may rate his employee at the higher or at lower end of the scale under the methods.
Forced distribution method is developed to prevent the ratters from rating high or too low. Under
this method the ratter aner assigning the points to the performance of each employee has to
distribute his rating in the pattern to conform to normal frequency distribution. This method
eliminates central tendency and leniency biases. However, in this method employees are placed in
certain ranked categories but not ranked with in the categories. Quite often work groups do not
reflect a normal distribution of individual performance. This method is based on the assumption
as group of employees will have the same distribution of excellent, average and poor performers.
If one department has all outstanding employees, the supervisor would find it extremely difficult
to decide who should be placed in the lower categories. Difficulties is can also arise when the
ratter must explain to the employee why he was placed in one grouping and others were placed in
higherGrouping.
Checklist Method:
The check list is simple rating technique in which the supervisor is given a list of Statement are
words and asked to check statements representing the characteristics and performance of each
employee. There are three types of check list methods, viz., simple check list, weighted check list
and forced choice method.

37
MODERN METHODS:
Behaviorally Anchored Rating Scale (BARS): The behaviorally anchored rating (BARS)
combines element Of traditional rating scale and critical incident methods. Using BARS job
behaviors from critical incidents — effective and infective behavior and described more
objectively. BARS considerable employee participation, its acceptance by both supervisors and
subordinates may be greater. Proponents of BARS also claim that such a system differential
among behaviour. Performance and results, and consequently is able to a basis for setting
developmental goals for the employee. Because job specific and identifies observable and
measurable behavior. it is more reliable and valid method for performance appraiser.

Assessment Centre: This method of appraising was first applied in German army in 1930.
Later business and industrial houses started using this method. This is not a technique of
performance appraisal by itself. In fact, it is a system or organization, where assessment is done
by several individuals and also by various experts by using various techniques. In this approach
individual from various departments are brought together to spend two or three days working on
an individual or a group assignment similar to the ones they would be handling when promoted.
All assesses get an equal opportunity to show their talent and capabilities and secure promotion
based on merit.

Human Resources Accounting: Human resource accounting deals with cost of and contribution
of human resources to the organization. Cost of the employee includes cost of the man power and
planning, recruitment, selection, induction, placement, training, development, wages and benefits
etc. employee’s contribution is the money value of the employee service which can be measured
by labour productivity or value added by human resources.

Management by objectives (MBO): The first step is to establish the goals to each subordinate
10 attain. In some organizations, the superiors and subordinates work together 10establish goals.
Here superiors establish goals for subordinates. The goals which were established can evaluate an
employee performance. The second step is to set the performance standard for the subordinates.
'While performing they know what we should do, what has been done, and what is remained to
do. The third step is to compare the actual level of goals with the goals we had set. The evaluator
should explain the goals that were met and the goals which were exceeded. It helps to determine
the training needs in the organization. In this condition, the superior should alert in the
organization may affect a subordinate. The final step is to stablish new goals, new strategies for
goals that were n previously attained. At this point, the superior and subordinate involvement in
goal setting m change. The subordinates who achieved the established goals are allowed to.
38
 participate in the goal setting process. The disadvantage of this method is that it is not applicable
for all jobs and for all organizations i.e., the jobs with little or no flexibility such as assembly line
work are no comfortable with this job because the performance standards and objectives were
already determined

PSYCHOLOGICAL CENTRES:
In this method, large organizations employ full –time industrial psychologists. These
psychologists will assess an individual’s future potential. The appraisal normally consists in-
depth interviews. Psychologists’ tests. Discussions with supervisors, and a review of other
evaluations. The psychologist then writes an evaluation by the psychologist may be for a specific
job opening for which the person is being considered or for the global assessment of their future
potential. From these evaluations, placement and development decisions are made to shape the
person’s career. This method is used to evaluate the performance of young members.

LIMITATIONS OF PERFORMANCE APPRASIAL:

Performance Appraisals were subjected to a wide variety of inaccuracies and biases referred to as
rating errors. These errors occur in the ratters’ observations; judgement and information
processing that can affect assessment results. The most common rating errors were discussed
elaborately.

LENIENCY OR SEVERITY

Things are lenient for the following reasons:

1. The judgement given by the rater shouldn’t affect the rate’s worthiness.
2. The rater’s judgement should affect the job of rate.
3. Harmful rating affects the relationship between the rater and the rate.
4. The rater’s rate leniently in order to win promotions to their subordinates and to remain
theirservice in the organization.
CENTRAL TENDENCY

This error occurs when appraisers rate all employees as average performers. For example, a
professor will give a class grade nearly equal to B, regardless of the differences in individual
performance.

HALO EFFECT
This error takes place when one aspect of an individual's performance influences the evaluation of
the entire performance of the individual, for example, an attractive or popular employee might be

39
rated very highly.

RATER EFFECT
It includes favoritism, stereo typing and hostility. High or low scores were given to the
individuals or groups based on the ratter’s altitude towards the rate, not on actual outcomes or
behaviors, sex, age, race and friendship errors are the examples of this type of error.

PRIMARY AND RECENCY EFFECTS

The ratter’s ratings are heavily influenced either by behaviour exhibited by rate during the early
stages of the review period i.e., primary effect or by outcomes or behaviours exhibited by the rate
by the end of the rate period. For example, a sales executive captures an important contract or
sale, just before the completion of appraisal. The sales executive will be appraised due to his or
her sale even though his or her overall performance is not satisfied. In the same way, if the
example of sales executive is taken, if the overall performance of the executive is excellent but
when he or she commits a mistake during the appraisal period, it affects the overall performance
of that particular executive. But the ratter should be raised or they should consider the composite
performance of the rate it should be influenced by one incident or one achievement.

PERCEPTUAL SET:
This error occurs when the ratter’s assessment is influenced by previously held beliefs. For if
superior had a belief that the employees recruited from one particular region are intelligent and
hardworking, his or her subsequent rating or an employee hailing from that region tends to be
favorably high

SPILLOVER EFFECT:

This error refers to allowing past performance appraisal ratings to unjustifiably influence the
current ratings. Post ratings may be good or bad result in similar rating for the current period.

40
 REVIEW OF LITERATURE

1. Josephine wangari kihaima (2019) The effects of employee performance organizations should
also consider other factors such as job satisfaction work environment and training opportunities to
factor enhance the employee production it is important for managers to provide regular appraisal
feedback to employees. The appraisals provide wide spread dissatisfaction with the performance
appraisal is bound to continue on performance on their job roles.

2. Kolawale sunday jibola (2019) The focus on examines the relation between performance
appraisal and employee work management in manufacturing in nigeria.it is used as a describe
research from employee purpose of selection used to determine the employee of an engagement.
The appraisal with in management many companies during the past 20 years and is currently
being adopted by many others is the management of their development programs in the
organization.

3. Muhammad asad khan (2019) The research aimed to analyze the relationship between
employee and HR job performance and job satisfaction of involved 300 facility members from six
public sectors of area equation model sector of results of an appraisal process. It provides
systematic judgements backup salary increases promotions transfers and sometimes demotions or
terminations of their managers performance in their organizations on appraisal process.

4. Obiekiewe, onebyuchi(2019) The performance of productivity human resource planning

promotions ,training and development carrier compensation planning programs leniency central
tendency halo effect personal bias recent behavior bias evolution of employee performance
promotions. The appraisal programs tend to run into resistance from the managers who admit the
necessity of such programs frequently at the process especially the interview part.

5. Ruslan,BukaminLiann(2020)The impact on principals situational leadership style and teachers

professionalism on teachers performance in primary schools The sample consisted of 30 teachers
from primary schools of saps program on performance principal situation leadership program. It
is a well planned and carefully administrated appraisal program or opinion poll included two
questions regarding appraisals more than 90% of their questioner approved the appraisals.

41
6. Ed Dandalt and stephane,Brakes (2020)The focus on language used in the teacher performance
appraisal techniques requirements manual in Ontario it points out the procedure of article presents
a unique example of studying practices and consider teacher evaluation regulating as a subject of
empirical inquiry. The respondent has no reason to lie and it was the slightest supposition that
their superiors had committed forgery on their responsibilities of their organization.

7. Didut Darmawan,Rahayu maradikinsingh(2020) The study on relationship between the quality

of human resources and job performance and employee loyalty’s important factors that can
impact the success of company quality hr. positively effects both job performance and employee
locality. The skills of appraising and interviewing the eliminate managerial resistance entirely the
difficulties connected with negative appraisals remain a source of genuine concern.

8. Hongze lu,penghzooshiewilu,(2020)The challenges of performance appraisal methods or

working analyzed various aspects such as objectives ,principal advantages of performance
appraisal tools to manage the performance data and process these employees on performance
indicator system. There is always some discomfort involves in telling a subordinate is not doing
well. The individual who is coasting during the few years prior to retirement.

9. Herman Aguinis,(2021)The covid -19 pandemic challenges the organizations have faced
difficulties in areas such as hiring salaries work arrangements and employees wellbeing
additionally the limitations of traditional performances appraisal system become more apparel. In
my view doesn’t reflect anything simple as resistance to change or dislike per personal technique
a lack of skills or managers seems to be expressing real misgivings in the organization.

10. IGOMA E N Tonlagha (2021) The performance appraisal was conducted on the turbine power
system the study collected data from operational data for plant performance issues persist
introduced intercoolers could help the control of ambient temperature. The approach with
consummate skills and something and dangerously leads to violation of integrity of their
personality. Managers are uncomfortable when there are put in the position of playing god in the
organization.

42
11. Abdulsalaam iyanda smail (2021) The study you investigate the relationship between of
various aspects of organization management collected from 450 academies in stated that owned in
approach they used to hypothesis of employee performance of suggest that management support
of performance appraisal of employee. The conventional approach to performance appraisal
forces us not to only make such judgements to see them and communicate them.

12. Abbas Homanui,Ali mohammad mosada(2021)The study that aims to evaluate the
effectiveness of performance appraisal system for employee at Tehran university of medical
sciences on employee themselves it plays a crucial role of operational realities by organizations.
Managers cannot escape make judgements about subordinates without such evaluations salary and
promotions policies cannot be administrate sensibly on their organization.

13. Bhadrappa Haralayya(2022)cccl is a company which incorporated in 1962 a part of chettinad

group it have been involves in the 1967.the business interest in cement engineering logistics
sectors the company also possess the thermal power plant with a total capacity of 136 for power
generation. The final decision to accept or rejecting but as far as the assumptions of the
conventional appraisal process or concerned still have what practically identical with product
inspection.

14. Subianto Karoso(2022)It's interesting to learn about your study on employee performance and
the factors that influence it. The findings indicate that there is a significant relationship between
work environment, quality of work-life, and organizational commitment with employee
performance. Moreover, organizational commitment acts as a mediator between the work
environment and quality of work-life on employee performance. These results highlight the
importance of organizational commitment in enhancing employee performance. Additionally, the
study suggests that the work environment and quality of work-life are strong predictors of
employee performance.

15. Ms.shobitha(2022)The human resource is both challenging the crucial role for organization
employees as well as an employee retention performance of objective to boost employee to
evaluation of performance appraisal of employee retention. The appraisal program is reflects to
unwillingness to treat their organization come into conflict with our convections about their work
and dignity of human personality on the manager in their organization.

43
16. Jinpeng(2022)The improve on performance in order to enhance the well competitiveness of
enterprise a well-designed performance appraisal employees improvement align with
organizational objectives the effect of performance appraisal methods of setting the clear
performance appraisal goals, it provides regular feedback and coaching fair evaluations. The
organization must yield in the face of this fundamental human value. There are personal
administrators be concerned with human problems of industry.

44
 CHAPTER-IV
PERFORMANCE APPRAISAL SYSTEM IN SMAL
 Performance management system (PMS):
It is a goal-oriented process directed toward ensuring that organizational processes are in place to
maximize the productivity of employees, teams, and ultimately, the organization.
Performance appraisal
It is the process of determining and communicating to an employee how he or she is performing
on the job and ideally establishing a plan of improvement. Performance appraisal is one of the
best methods for evaluating the behaviour of employee in the work spot, normally including both
the quantitative and qualitative aspect of job performance.
METHODS/TECHNIQUES OF PERFORMANCE APPRAISAL
With the evaluation of development of appraisal system, a number of methods or techniques of
performance appraisal have been developed., The impotent among them are Divided into two
types. Traditional methods and modern methods.

• TRADITIONAL METHODS
Traditional methods are again divided into:
1. Graphic rating scales.
2. Ranking method
3. paired comparison method.
4. Forced distribution method.
5. Checklist method.
6. Essay or free form appraisal
7. Group appraisal.
8. Confidential report
• MODERN METHODS:
1. Behaviorally Anchored Rating scale (BARS).
2. Human resource Accounting.
3. Management by Objectives (MBO).
4. Psychological Appraisal.

45
TRADITIONAL METHODS:
Graphic Rating Scales:
Graphic rating scales compare individual performance to an absolute standard. In judgments
about performance are recorded on a scale. This is the oldest and widely used technique. his
method also is known as linear rating scale or simple rating scale. Rating scales are of two types,
viz., continues rating scale and discontinues scales. In continues order like 0, l, 2, 3, 4 and 5 and
in discontinues scale the appraiser assigns the point to each degree. performance regarding each
character is known by the points given by the ratter. points given by the ratter to each character
are added up to find out the overall performance. Employees are ranked on the bases of total
points assigned to each one of them.

Ranking Method:
Under this method the employees are ranked from best two worst on some characteristics. The
ratter first finds the employee with the highest performance and the employees with the lowest
performance in that particular job category and rates the former as the best and the later as the
poorest. Ranking can be relatively easy and in expensive, but its reliability and validity may be
Open to doubt. It may be affected by ratter bis or varying performance standards. Ranking also
means that somebody would always in the back bench. It is possible that the low ranker
individual in one group may turn out to be superstar in another group. one important limitations
of the ranking method are that the size of the difference between individual is not well defined
for instance, there may be little difference between those ranked third and fourth.

Paired Comparison Method:

This method is relatively simple. the appraiser ranks the employee by comparing one employee
with all other employee in the group, one at a time. As illustrated this method results in each
employee being given a positive Comparison total and a certain percentage of the total positive
evaluation.
Forced Distribution Method:
The ratter may rate his employee at the higher or at lower end of the scale under the methods.
Forced distribution method is developed to prevent the ratters from rating high or too low. Under
this method the ratter aner assigning the points to the performance of each employee has to
distribute his rating in the pattern to conform to normal frequency distribution. This method
eliminates central tendency and leniency biases. However, in this method employees are placed in
certain ranked categories but not ranked with in the categories. Quite often work groups do not
reflect a normal distribution of individual performance. This method is based on the assumption
as group of employees will have the same distribution of excellent, average and poor performers.
If one department has all outstanding employees, the supervisor would find it extremely difficult
46
decide who should be placed in the lower categories. Difficulties is can also arise when the ratter
must explain to the employee why he was placed in one grouping and others were placed in
higherGrouping.
Checklist Method:
The check list is simple rating technique in which the supervisor is given a list of Statement are
words and asked to check statements representing the characteristics and performance of each
employee. There are three types of check list methods, viz., simple check list, weighted check list
and forced choice method.

MODERN METHODS:
Behaviorally Anchored Rating Scale (BARS): The behaviorally anchored rating
(BARS) combines element Of traditional rating scale and critical incident methods. Using BARS
job behaviors from critical incidents — effective and infective behavior and described more

objectively. BARS considerable employee participation, its acceptance by both supervisors and
subordinates may be greater. Proponents of BARS also claim that such a system differential
among behaviour. Performance and results, and consequently is able to a basis for setting
developmental goals for the employee. Because job specific and identifies observable and
measurable behavior. it is more reliable and valid method for performance appraiser.

Assessment Centre: This method of appraising was first applied in German army in 1930.
Later business and industrial houses started using this method. This is not a technique of
performance appraisal by itself. In fact, it is a system or organization, where assessment is done
by several individuals and also by various experts by using various techniques. In this approach
individual from various departments are brought together to spend two or three days working on
an individual or a group assignment similar to the ones they would be handling when promoted.
All assesses get an equal opportunity to show their talent and capabilities and secure promotion
based on merit.

Human Resources Accounting: Human resource accounting deals with cost of and
contribution of human resources to the organization. Cost of the employee includes cost of the
man power and planning, recruitment, selection, induction, placement, training, development,
wages and benefits etc. employee’s contribution is the money value of the employee service
which can be measured by labour productivity or value added by human resources.

47
Management by objectives (MBO): The first step is to establish the goals to each
subordinate 10 attain. In some organizations, the superiors and subordinates work together 10
establish goals. Here superiors establish goals for subordinates. The goals which were established
can evaluate an employee performance. The second step is to set the performance standard for the
subordinates. 'While performing they know what we should do, what has been done, and what is
remained to do. The third step is to compare the actual level of goals with the goals we had set.
The evaluator should explain the goals that were met and the goals which were exceeded. It helps
to determine the training needs in the organization. In this condition, the superior should alert in
the organization may affect a subordinate. The final step is to stablish new goals, new strategies
for goals that were n previously attained. At this point, the superior and subordinate involvement
in goal setting m change. The subordinates who achieved the established goals are allowed to
participate in the goal setting process. The disadvantage of this method is that it is not applicable
for all jobs and for all organizations i.e., the jobs with little or no flexibility such as assembly line
work are no comfortable with this job because the performance standards and objectives were
already determined.
Key Result Area
These are the activities that you need to focus more importantly of all other the activities that you
perform. They are measurable, meaning, your will accept some targets and strive to achieve them
in the agreed period of time.
KRAs should be very focused and limited. Thoughtful KRA are S.M.A.R.T, Ie, Specific,
Measurable, Attainable, Realistic and Time bound. Ask yourself what will be achieved by this
KRA that will contribute the organizational goals. Have as many detailed Action Plans to achieve
the specific KRAs. Have limited SMART KRAs only.
How do I fill my KRAs
Click on the KRA tab. You will find the classifications available for this year. Click on the + sign.
And start filling your KRAs. You should be ready with the KRAs that are measurable. Each KRA
will have a target and a unit of measure. The target is what you have to achieve in a specific year.
This target can be broken down to quarterly or half yearly as agreed with your appraise.

48
Who will approve my KRAs
Your KRAs will be approved by your reporting officer, (BOSS). He / She can see your KRA as
they get filled, and can also comment on it till satisfied and then approve the same. The same
process is applicable for your team also.
Each KRA will be measurable and hence it should be measured with Unit of Measure
Example: Days, Numbers, Liters, and Meters etc.
When you take a target, it should be benchmarked with a previous year figure or an external
figure. This will help to justify your target

49
 KAUSHAL APP

It is a structured approach towards Employee & Organizational development. It is a

new-era tool for performance evaluation, management & monitoring. The tool works integrated
with KRAs & PMS company-wide and automates the HR functions, yet preserves the soul of
existing HR system. It is designed for better people-connect and performance enhancement.
1. Organization Focus

• Align organizational focus areas with employee targets and goals.

• Evaluate performance and collaborate to achieve desired results

Health & Safety

50
2. Achievements with Collaboration and structured approach

o Set Key Result Areas (KRA) for each employee and their teams.

o Have action plans to achieve targets.

o Collaborate with peers and associates as enablers in the organization to achieve each
other’stargets.

3. Monitor progress with figures

o Capture data for each KRA / KPI to monitor progress and ensure achievements.

51
4. Assess Competencies and Training needs to achieve goals & targets

o Identify the key deficiency in competencies.

o Associate Training need to perform optimally.

o Identify the key performers with their potential.

o Reward suitably with financial benefits and recognitions.

52
CHAPTER-V
SUMMARY
FINDINGS

SUGGESTIONS
CONCLUSION
 SUMMARY
In almost every organization, every employee is subjected to periodic appraisal of his/her
performance. This is highly important if the organization’s human resource development
objectives are to be realized, if the organization wants to make best use of its human
resource and if the organization wants to have a scientific and retinal compensation
system. An effective performance appraisal system brings rationality in management. If
an organization wants to maximize its effectiveness then the organization must have tool
by which it can discriminate between an effective employee and not so effective employee.
Today, appraisal is not something of a choice left to the wishes of the corporate bosses, nor
it is a privilege to be enjoyed by few businesses’ conglomerates.

Therefore, it is a must for every organization for its survival and growth. The
appraisal practices are in somewhere structured and formally sanctioned and in other
instances they are an informal and integral part of daily activities. Thus, across the human
activities someway or other performance appraisal is conducted in different ways and all of
us, consciously or unconsciously evaluate our own actions from time to time. In social
situation, performance is conducted in a systematic and planned manner to achieve various
organizational goals in socialsystem.

Metal Alloys Market was valued at around USD 291 billion in 2021 and is
anticipated to grow at a CAGR of 5.1% from 2022 to 2030 driven by the rapidly rising
transportation sector along with increasing investments in construction projects across the
globe. With respect to volume, the industry size may register a CAGR of 4.5%
through2030, with a targeted projection of 170,031.0 kilo tons.
A 100% subsidiary of Sarda Energy & Minerals Ltd. (SEML)
SMAL was set up as a greenfield state-of-the-art complex near Vishakhapatnam, A.P,
India in 2013-14 with 1 X 80 MW Captive Power Plant and 2 X 36 MVA Ferro Alloys
Submerged Arc Furnaces In 2022 December a new furnance was added now it has 3 X
36MVA Ferro Alloys Sumbmerged Arc Furnaces.

This unit is envisaged to become the most technologically advanced, sustainable and
the largest single location Ferro Alloy complexes in India. Spread over an area of 281 acres
in APIIC Kantakapalli Industrial Park, the plant is strategically located just 40-45 KM from
Vishakhapatnam & Gangavaram Ports and only 2 Kms from Kantakapalli Railway siding
on Chennai-Kolkata main line.

53
Graphic rating scales compare individual performance to an absolute standard. In
judgments about performance are recorded on a scale. This is the oldest and widely used
technique. his method also is known as linear rating scale or simple rating scale. Rating
scales are of two types, viz., continues rating scale and discontinues scales. In continues
order like 0, l, 2, 3, 4 and 5 and in discontinues scale the appraiser assigns the point to each
degree. performance regarding each character is known by the points given by the ratter.
points given by the ratter to each character are added up to find out the overall
performance. Employees are ranked on the bases of total points assigned to each one of
them.

KRAs should be very focused and limited. Thoughtful KRA are S.M.A.R.T, Ie, Specific,
Measurable, Attainable, Realistic and Time bound. Ask yourself what will be achieved
by this KRA that will contribute the organizational goals. Have as many detailed Action
Plans to achieve the specific KRAs. Have limited SMART KRAs only.
Your KRAs will be approved by your reporting officer, (BOSS). He / She can see your
KRA as they get filled, and can also comment on it till satisfied and then approve the same.
The same process is applicable for your team also.
Each KRA will be measurable and hence it should be measured with Unit of Measure
Example: Days, Numbers, Liters, and Meters etc.
When you take a target, it should be benchmarked with a previous year figure or an
externalfigure.This will help to justify your target

54
 FINDINGS:

1. It is found that graphical radical scale is used for performance appraisal in Sarda metals &
alloys ltd.

2. It is found that for rating their will Appraise, Appraiser, Reviewer, Counter Party for the
Review

3. It is found that the conflicts arise rarely after the appraisal made in the organization.
4. It is found that the organization clearly communicate the standard of employees as per their
rating scale

5. It is found that the performance appraisal in Sarda metals & alloys ltd is done once in a
year.
6. It is found that majority of the employees are accepting that self-appraisal system
effectivelywhile appraising the appraisee.

7. It is found that most of employees agreed that the appraisal system helps them to plan
work in advance.

55
 SUGGESTIONS:

1. We are using the rating scale method it is an old model. to know about the employees in
the organization we can use the 360-degree appraisal

2. When the appraisal is going on it should be like encouraging to the employees.

3. While conducting performance appraisal, we want to highlight their achievements.

4. While they are assigning their own tasks it wants to be reach the organizational goals.

56
 CONCLUSION

From my study. I want to make a conclusion on performance appraisal in sarada metala & alloys
ltd. From the study we conclude that for performance appraisal they are using the graphic rating
scale. In this graphic rating scale, they want to assign their own tasks of what they achieve in the
organization. While they assign their own the ratings will be given by their own name appraise,
appraiser the person who was head to him, reviewer& counter sign. By this they will fix their
rating and it will help to appraise their performance. For doing all this process they will use the
software of Kaushal. KRAs should be very focused and limited. Thoughtful KRA are S.M.A.R.T, I.e,
Specific, Measurable, Attainable, Realistic and Time bound. When you take a target, it should be
benchmarked with a previous year figure or an external figure. This will help to justify your
target.

57
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WEBSITES REFERED:

https://sardametals.com
https://www.sstpl.co.in/kaushal.html