Dissertation Report on Performance Appraisal - Bhel

DISSERTA DISSERT ATION REPO REPORT RT ON “A STUDY ST UDY OF PERFORM PER FORMANC ANCE E APPRAI AP PRAISAL SAL” AT “BH “B HEL”

Submitted in patia! "u!#!!ment $" t%e e&uiement "$ a'ad $" t%e de(ee $"  MASTER OF BUSINESS ADMINISTRATION )*+,-)*+. /UTTARA0HAND TECHNICAL UNI1ERSITY2 DEHRADUN3

ROOR0EE COLLE4E OF MANA4EMENT 5 COMPUTER APPLICA APPLI CATION2 TION2 ROOR0EE Submitted T$6

Submitted B76

M89 AL0A CHAUDHARY SHALINI SIN4H P$"e88$ /RCMCA3

MBA /:t% SEM3

AC0NO;LED4EMENT

I am indebted to Mr. Girish, the Human Resource Manager of  BHEL BH EL,, for gi givi ving ng me an oppo opport rtun unit ity y to do su surrvey vey in thi his s este esteem emed ed orga organiz nizat atio ion. n. His His no! no!"e "edge dge # e$pe e$peri rienc ence e !as !as a grea greatt moti motiva vati ting ng fact factor or.. %his %his e&or e&ortt !ou" !ou"d d not not have have been been possib"e !ithout his ab"e, e'cient, va"uab"e and time"y advice, insi in sigh ghts ts and and thou though ghts ts.. I am very very much much than thanf fu" u" to sir sir hi his s va"uab"e guidance and support. I tae this opportunity to e$press my heartfe"t gratitude to my facu"ty guide M89 A!ata ana"ysis ****************************************************************************7; 7. 2indings and the recommendations from the pro(ect ************************* 7= ?. onc"usion *******************************************************************************?9 =. Bib"iography *****************************************************************************?; @. nne$ure *********************************************************************************?@

CHAPTER + INTRODUCTION

+9+ INTRODUCTION OF THE TOPIC

PERFORMANCE APPRAISAL 1erformance ppraisa" is the systematic eva"uation of the performance of emp"oyees and to understand the abi"ities of a person for further gro!th and deve"opment. 1erformance appraisa" is genera""y done in systematic !ays !hich are as fo""o!sA •

•

•

 %he supervisors measure the pay of emp"oyees and compare it !ith targets and p"ans.  %he supervisor ana"yses the factors behind !or performances of emp"oyees.  %he emp"oyers are in position to guide the emp"oyees for a better performance.

ccording to 2"ippo, a prominent persona"ity in the /e"d of Human resources,5 1erformance appraisa" is the systematic, periodic and an impartia" rating of an emp"oyees e$ce""ence in the matters pertaining to his present (ob and his potentia" for a better (ob.C  1erformance appraisa" is a systematic !ay of revie!ing and assessing the performance of an emp"oyee during a given period of time and p"anning for his future. It is a po!erfu" too" to ca"ibrate, re/ne and re!ard the performance of the emp"oyee. It he"ps to ana"yze his achievements and eva"uate his contribution to!ards the achievements of the overa"" organizationa" goa"s. By focusing the attention on performance, performance appraisa" goes to the heart of pe8$nne! mana(ement and reDects the managements interest in the progress of the emp"oyees.

PURPOSE OF PERFORMANCE APPRAISAL

 

 

Increment in sa"ary, promotion, transfer, "ayo&, termination.  %raining and deve"opment needs.

 

1roviding feedbac on performance.

 

Basis for research and reference for personne" decision in future

METHODS OF PERFORMANCE APPRAISAL

+9 Raneve"oping and practicing BR+ re)uires e$pert no!"edge.

,9 HUMAN RESOURCE ACCOUNTIN4 METHOD Human resources are va"uab"e assets for every organization. Human resource accounting method tries to /nd the re"ative !orth of these assets in the terms of money. In this method the 1erformance appraisa" of the emp"oyees is (udged in terms of cost and contribution of the emp"oyees. %he cost of emp"oyees inc"ude a"" the e$penses incurred on them "ie their compensation, recruitment and se"ection costs, induction and training costs etc. !hereas their contribution inc"udes the tota" va"ue added in monetary terms. %he di&erence bet!een the cost and the contribution !i"" be the performance of the emp"oyees. Idea""y, the contribution of the emp"oyees shou"d be greater than the cost incurred on them.

:9 ,>*-DE4REE-PERFORMANCE-APPRAISAL METHOD ;?8 degree feedbac, a"so no!n as mu"ti*rater feedbac, is the most comprehensive appraisa" !here the feedbac about the emp"oyees performance comes from a"" the sources that come in contact !ith the emp"oyee on his (ob. ;?8 degree respondents for an emp"oyee can be hisJher peers, managers i.e. superior, subordinates, team members, customers, supp"iersJ vendors *anyone !ho comes into contact !ith the emp"oyee and can provide va"uab"e insights and information or feedbac regarding the Con*the*(obC performance of the emp"oyee. ;?8 degree appraisa" has four integra" componentsA

9. +e"f*appraisa" :. +uperiors appraisa" ;. +ubordinates appraisa" -. 1eer appraisa".

SUPERIOR 

SELF

EMPLOYEE

PEER 

SUBORDINATE

F$u Inte(a! C$mp$nent8 $" ,>* De(ee Appai8a!

+e"f*appraisa" gives a chance to the emp"oyee to "oo at hisJher strengths and !eanesses, his achievements, and (udge his o!n performance. +uperiors appraisa" forms the traditiona" part of the ;?8 degree performance appraisa" !here the emp"oyees responsibi"ities and actua" performance is rated by the superior. +ubordinates appraisa" gives a chance to (udge the emp"oyee on the parameters "ie communication and motivating abi"ities, superiors abi"ity to de"egate the !or, "eadership )ua"ities etc. "so no!n as interna" customers, the correct feedbac given by peers can he"p to /nd emp"oyees abi"ities to !or in a team, co*operation and sensitivity to!ards others. +e"f*assessment is an indispensab"e part of ;?8 degree appraisa"s and therefore ;?8 degree 1erformance appraisa" have high emp"oyee invo"vement and a"so have the strongest impact on behavior and performance. It provides a C;?8*degree revie!C of the emp"oyees performance and is considered to be one of the most credib"e performance appraisa" methods. ;?8 degree performance appraisa" is a"so a po!erfu" deve"opmenta" too" because !hen conducted at regu"ar interva"s say year"y it he"ps to eep a trac of the changes others perceptions about the emp"oyees.  ;?8 degree appraisa" is genera""y found more suitab"e for the managers as it he"ps to assess their "eadership and managing sty"es. %his techni)ue is being e&ective"y used across the g"obe for performance appraisa"s. +ome of the organizations fo""o!ing it are Kipro, Infosys, and Re"iance Industries etc.

.9 MANA4EMENT BY OB@ECTI1ES /MBO3 METHOD  %he concept of Management by 3b(ectives MB3 !as /rst given by 1eter >rucer in 9I and is one of the "eading internationa" companies in the po!er /e"d. BHEL o&ers a !ide spectrum of products and services for core sectors "ie po!er transmission,

industria"

transportation,

oi"

and

gas,

te"ecommunication etc. Besides supp"y of non*conventiona" energy systems. It has a"so embared into other areas inc"uding defense and civi" aviation.  dynamic ?;888 strong team embodies the BHEL phi"osophy e$ce""ence through continuous striving for state of the art techno"ogy. Kith corporate head)uarters in 4EK >ELHI, fourteen manufacturing units, a !ide spread regiona" services net!or and pro(ects sites a"" over

India

and

even

abroad,

BHEL

is

Indias

industria"

ambassador to the !or"d !ith e$port presence in more than 78 countries. B.H.E.L.s range of services e$tent from pro(ect feasibi"ity studies to after sa"es services, successfu""y meeting diverse needs through turney capabi"ity. BHEL has had a consistent trac record of gro!th, performance and pro/tabi"ity. %he Kor"d Ban in its report on the Indian 1ub"ic +ectors, has described BHEL as 0one of the most e'cient enterprises in the industria" sector, at par !ith internationa"

standards of e'ciencyC. BHEL has ac)uired I+3