Project on Central Coal Field

Introduction of C.C.L

C.C.L is a subsidiary company of coal India limited limited under ministry of coal and mines govt. of  India C.C.L is one of the 7 coal production subsidiaries of coal india limited under ministry of coal and mines. Company is governed by b y a board of directors consisting of 5 full time directors and 6 part time directors. Full time directors are responsible for specific functions of  operation, project & planning, finance and personnel.

India is third largest country in the production of co al. C.C.L means Central Coalfields Limited.

1

Coal India Limited – A Profile

Coal India limited is the third largest coal producing company in the world. It was formed on 21st October, 1975 as a Holding Company under the ministry of coal, Govt. of India, for the entire coal industry in the country barring the coal mines in Andhra Pradesh and captive mines of  TISCO, IISCO and DVC. Its registered office is located at 10, Netaji Subhash Road, Kolkata. It was declared Public Sector Undertaking in November, 1975 for reorganizing the nationalized coal mines and ensuring integrated development of coal, the prime source of energy. Coal India presently contributes 90% of the total coal production in India. It operates through   NINE subsidiaries: EIGHT producing companies: Eastern Coalfield Limited (ECL), Sanctoria, WB; Bharat Coking Coal Limited (BCCL); Central Coalfield Limited (CCL), Ranchi Jharkhand;  Northern Coalfield Limited (NCL), Singrauli, MP; Western Coalfields Limited (WCL), Nagpur, Maharashtra; Mahanadi Coalfields Limited (MCL), Sambalpur, Orissa; The mines of North Eastern Eastern Coalfields Coalfields Limited (NECL), Assam & Meghalaya; Meghalaya; South Eastern Eastern Coalfield Coalfield Limited (SECL), Bilaspur; and Coal Mine Planning & Development at Institute Limited (CMPDI). And Dankuni Coal Companies (DCC) in West Bengal operates directly under coal India. Coal India currently operates 510 mines (tentatively) and 15 washeries spread over nine states to  produce and beneficiate coal for meeting the demand of the consumers all over the country. The ranges of products are: Raw coal (coking and non-coking), Washed coal, Middlings, soft coke & Hard coke, coal, tar, coal gas, coal chemicals etc.

2

Background History

1774

Warren Hastings initiates commercial coal mining at Raniganj (West Bengal)

1815 1815-1 -182 820 0

Firs Firstt Sha Shaft ft Mine Mine open opened ed at Rani Ranigu gunj nj

1835

Carr, Tagore & Company takes over the Ranigunj Coal Mines

1843

Bengal Coal Company takes over Ranigunj Coal Mines and others; is first  Joint Stock Coal Company in India.

Upto 1900

Minimal development; River transportation transportation used to transport coal to Calcutta;railway Calcutta;railway lines at Calcutta leads to expansion of Coal Production

Early 1900s

Capacity at 6 million tonnes per annum

1955 19 55-5 -56 6

Focu Focus s on on Coa Coall Ind Indus ustr try; y; capa capaci city ty up to 38 38.4 .4 Mill Millio ion n ton tonne nes. s.

1956

National Coal Development Corporation (NCDC) formed to explore and expand coal mining in Public Sector

1972

Coking Coal Industry Nationalised, Bharat Coking Coal Limited formed to manage operations of all Coking Coal mines in Jharia Coalfield.

1973

Non-coking coal nationalised; nationalised; Coal Mine Authority Limited set up to manage these mines; NCDC operations bought under the ambit of CMAL.

1975

Coal India Limited formed as holding Company with 5 subsidiaries subsidiaries viz. Bharat Coking Coal Limited (BCCL), Central Coalfields Limited (CCL), Western Coalfields Limited (WCL), Eastern Coalfields Limited (ECL) and Central Mine Planning and Design Institute Limited (CMPDIL).

1985

Northern Coalfields Limited (NCL) and South Eastern Coalfields Limited (SECL) carved out of CCL and WCL

1992

Mahanadi Coalfields Coalfields Limited (MCL) formed out of SECL to manage the  Talcher and IB Valley Coalfields in Orissa.

2000

De-regulation of of Co Coal pr pricing an and di distribution of of co coal.

2007

Coal India & four of its nos Subsidiaries, Subsidiaries,viz,NCL,SECL,MC viz,NCL,SECL,MCL,WCL L,WCL was accorded coveted "Mini Ratna" Status

3

4

Company Profile Date of  incorporation

Coal India Limited was formed as holding Company with 5 subsidiaries on 21.10.1975

Corporate Status :

The company is incorporated under the Companies Act, 1956 and is wholly owned by the Government of India (GOI).

Business :

Engaged in the mining of coal, coal based products and mining consultancy.

Wholy Owned Subsidiaries

Eastern Coalfields Ltd. Bharat Coking Coal Ltd. Central Coalfields Ltd. Northern Coalfields Ltd. Western Coalfields Ltd. South Eastern Coalfields Ltd . Mahanadi Coalfields Ltd . and Central Mine Planning & Design Institute Ltd . North Eastern Coalfields

India Ltd. Registered Office :

Coal Bhavan, 10 Netaji Subhas Road, Kolkata - 700 001 West Bengal, India.

5

is directly under Coal

INTERNAL ASPECTS

DELEGATION OF POWER 

CIL exercise the power delegated under DPE guidelines to the MOU signing companies and also  powers delegated by the ministry of Coal to Coal India Ltd. from time to time. Obligation of the Government:

In order to enable CIL to achieve its objectives and the level of performance set in the MOU, the Government on its part undertakes to:

Assist CIL in setting adequate supply of railway wagons.



Assist CIL in acquisition of land and getting clearance for forest land by taking up the matter with MOEF and the respective state government so that land acquired under the LA/C LA/CBA BA Act Act is hand handed ed over over and and the the fore forest st clea cleara ranc ncee give given n unde underr time time boun bound d  programmed.



Assist CIL in arranging and getting necessary approval for internal credit.



Assist CIL in recovery of outstanding coal sale due.



Assist CIL in restructuring of ECL and BCCL in view of report submitted by consultant.

MONITORING

CIL has to submit a quarterly report of performance for each of the performance indicators. The quarterly target in respect of indicators is same as reflected in the annual action plan 2001-02 of  the Ministry of coal. The Performance evaluation is based on its annual performance.

PERFORMANCE RATING:6

The performance rating is done in the following way:5% more than the target

- Excellent

•

Equal to the target

- Very Good

•

5% less than the target

- Good

•

10% less than the target

- Fair 

•

15% less than the target

- Poor 

CIL Board has followings members:•

Chairman CIL

•

Functional Director 

•

Additional Secretary, MCC

•

Joint Secretary & financial advisor , MOC

•

Representative from railway board

•

Two CMD’s of subsidiary company.

SUBSIDIARY COMPANIES

COMPANY

ECL B C CL CCL WCL N CL SECL MCL NEC CMPDI

HEADQUARTERS Sanctoria Dhanbad Ranchi Nagpur Singrauli Bilaspur Sambhalpur   Meghalaya Ranchi

Coal India and its subsidiaries 7

YEAR OF CORPORATION 1975 1973 1975 1975 1986 1986 1992 1975 1975

HIGHLIGHTS OF CCL

8

Central Coalfield Limited has been on the coal map the country as a public sector on October, 1956, under different names. In the beginning it was known as National Coal Development Corporation, then Central Division of Coal mines Authority , and finally under its present nomenclatures at Ranchi, Jharkhand. The Central Coalfield Limited is one of the subsidiaries of coal India Limited registered under  the Company’s Act 1956 in the year 1975. The mining and extraction of coal is entrusted to a  public sector organization Coal India Limited. The Company is divided into eight subsidiaries and Central Coalfield Limited is one of them. The company presently known as CCL has a history of more than three decades. Pursuant to the Industrial Policy Resolution of 1956, a company was formed by the names of M/S Hindustan Collieries Private Limited, on 5 September, 1956. The name was changed to the National Coal Develo Developme pment nt Corpor Corporati ation. on. The NCDC NCDC was formed formed on 01.10.19 01.10.1956 56 with with 11 state state railwa railway y collieries in Orissa and Madhya Pradesh. Like other industries and organization, the affair of CCL too is not settled by its owner (Govt. of  India) India).. Rather Rather the profes professio sional nal team team of manage managemen mentt called called Board Board of Direct Directors ors (BOD) (BOD) is appointed by the Govt. of India to manage the affair of CCL. It consis consists ts of chairm chairman an – cum-Ma cum-Managi naging ng Direct Director, or, four four functi functiona onall Direct Directors ors in charge charge of  operations, personnel, finance and projects & planning. Besides part-time Directors as may be appointed by the Govt. from time to time. At present CCL have 67 collieries and 7 washeries under revenue production. Some of the state collieries are very old, at least one of which that in Giridih has crossed century in the year 1961. It also has seven coal washeries , a coal oven plant ,  besides  besides workshop workshop and handling plants spread spread over in Hazaribagh , Palamau, Palamau, Ranchi, Bokaro , Giridih, and Chatra district.

CCL is the major source of medium coking coal in India. CCL’s other important activities are  beneficiation of medium coking coal for steel plants through its chain of coal washeries and manufa manufactu cture re of soft coke for domesti domesticc kitchen kitchen.. Most Most of the product production ion (88%) comes comes from from surface mines. The productivity productivity of underground mines and many of the surface surface mines is low, but  because of high priced of coking coal, the company has been making marginal profit and losses with the recent deregulation of coking coal price the profitability of the company is expected to improve. The command area of CCL companies 10 coalfields namely Giridih, East Bokaro, West 9

Bokaro, Bokaro, Ramgarh-kai Ramgarh-kaitha, tha, North North Karanpura, Karanpura, South Karanpura, Karanpura, Auranga, Hutar, Hutar, Daltongang Daltongang and Giridih/ Jayanti. Chairman-cum-Managing Directors is the full time executive of the company. The collieries and washeries have been grouped into 15 areas each headed by chief General Manager/General Manager. The coal projects are headed by project officer 

MAJOR COLLIERIES OF CCL

1. BARKASAYAL 2. ARGADA 3. NORT NORTH H KAR KARAN ANPU PUAR ARA A 4. RAJHARA 5. PIPARWAR  6. RAJRAPPA 7. KUJU 8. HAZARIBAG 9. BOKA BOKARO RO & KARG KARGAL ALII 10. 10. DHOR DHORII 11. KATHAR KATHARA A 12. KATHAR KATHARA A

COAL WASHERIES OF CCL Coking Coal Washeries Location 10

1. Rajrappa 2. Kedla 3. Sawang 4. Kargali Non Coking Coal Washeries Location

1.

Piparwar 

2. Gidi 3. kathara Coal-Type and Constitutes

Vegetable matter subjected to diverse geological processes and pressures give birth to the sedimentary rock called coal. Chemically coal is made of carbon, hydrogen, oxygen,nitrogen,and some other impurities. The main constitutes of coal are:Carboneous

Non Carboneous

Vitarin

Ash

Clarin

Moisture Volatile matter  Fixed Carbon

Broadly speaking , coal is is of four types: 1.Anthracite 2.Bituminous 3.Lignite 4.Peat CCL is mainly concerned with bituminous coal. These are mainly of two types:1. Coking coal 2. Non-coking coal 11

Coking coal is that variety of coal which has better coking properties and which can be converted into hard coke suitable for iron and steel industry and metallurgical purpose. Coking coal is of  three types:1. Prime coking coal 2. Medium coking coal 3. Semi coking coal GRADES OF COAL

Coal is divided into following grades according to uhv (useful heat value) COKING

NON COKING

St-1steel grades 1

GRADES A (>6200kcal/kg)

St-2steel grades 2

GRADES B (>5600kcal/kg)

W-1 washeries grades 1

GRADES C (>4940kcal/kg)

W-2 washeries grades 2

GRADES D (>4200kcal/kg)

W-3 washeries grades 3

GRADES E (>3360kcal/kg)

W-4 washeries grades 4

GRADES F (>2400kca/kg) GRADES G (>1300kcal/kg)

MISSION AND VISION OF CCL

VISION 12

To become a World class, innovate, competitive & profitable Coal Mining Operation to achieve customer satisfaction as top priority, Committed to create eco-friendly mining.

MISSION

The mission of CCL is to produce and market the planned quantity of coal and coal products efficiently and economically with due regard to safety, conservation and quality. The main thrust thrust of CCL in the present present context context is to orient orient its operati operations ons towards towards market market requirements maintaining at the same time financial viability to meet the resource needs.

Product Profile

Gradewise availability of Raw Coal Available Grade of Coal Non-coking Coking Grade U.H.V. (K Cal/Kg.) Non-Coking

Coking 13

Grade

U.H.V. (K Cal/Kg.)

Grade

% Ash

A

Exceed 6200

W-I

Between 18-21

B

Between 5600-6200

W-II

Between 21-24

C

Between 4940-5600

W-III

Between 24-28

D

Between 4200-4940

W-IV

Between 28-35

E

Between 3360-4200

F

Between 2400-3360

G

Between 1300-2400

METHOD OF EXTRACTION OF COAL

Coal is obtained from the earth’s surface called mines.

Mines are of two types. 1.OPENCAST MINES

In this type of mine with the help of technology attempt is made to reach the level of coal seam  by removing the overburden (i.e. after removing everything lying above the coal seam). For this heavy machines like HEMM (heavy Earth Moving Machine) are used the manpower is reduced. 2. UNDERGROUND MINES

In this type of mine technology attempts to reach the coal seam not by removing the overburden  but through a pit. These mines are in those areas where coal seam is deep. The overburden remains intact the workers dig the ground. The workers are sent to the level of coal seam either through shaft (an inclination) or through lift, i.e. DOLI. There is optimum utilization of manpower in these mines.

14

In this type of mines there is high risk of accidents due to the fall of roofs and sides. In order to avoid these accidents thrust is given to provide support of green roof with steel supports like steel cogs, pit props, roof, Bolts, W-straps, etc

HUMAN RESOURCE MANAGEMENT IN CCL

Human Resource is treated treated as a major. For improvement of production and productivity in CCL. For achieving the goals, special thrust is given by motivating & providing opportunity to every member of the organization to discover, unlock & develop their talent potential & wider the horizon through continuous learning. One of the thrust areas of the company is to impart need basic retraining of underutilized/surplus manpower and employees appointed under SFVRS (Special Female VRS). Newly recruitment and out sees and inductees under NCWA scheme are developed as a work force to compete in the statutory examinations conducted by DGMS, Electricity Board etc. During 1999-2000, Several courses were conducted covering topics like Leadership Development, TQM-ISO 9000, Techno Techno Manager Managerial ial topics topics,, Team Team Buildi Building, ng, Work Work Ethnic Ethnics, s, New Indust Industria riall policy policy,, Contrac Contractt Management, Quality Assurance, Statutory Cources, Advance Technology, Decision Making, Comp Comput uter er Educ Educat atio ion n and Appl Applic icat atio ions ns,, Manag Managem emen entt Devel Develop opme ment nt progr program amme me,, Safe Safety ty Management etc. Following are the training Institutes of CCL:15

1. Management Training centre, Ranchi. 2. Bhurkunda training Institute, Bhurkunda 3. Central Excavation Training Institute, Barkakana. 4. Security Training Institutes, Gandhi nagar, Ranchi. 5. Institute of Occupational Medicine and health centre, Gandhinagar, Ranchi. Computer Appreciation Program (CAP) is being regularly conducted at MTC. Training  programmed for pit safety committee members and workman inspector is also being regularly conducted

MAIN OBJECTIVE OF CENTRAL COALFIELDS LIMITED 1. To carry on business of coal mining 1.1 Acquisition of coal mining. 1.2 To produce or otherwise engage generally in the production, sale and and its by-product. 1.3 Mining coal, manufacturing coke and other business. 1.4 Manufacturing, trading and other business. 2. Recognition and reconstruction of coal mines taken over by government. 3. Policy formulation and advisory function. 4. To finance replacement expenditure. 5. To develop technical know-how. 6. Exploration and prospecting. 7. To manufacture and sell coal as a patent fuel. 8. To carry on mining and carrying coal other by products incidental there to. 9. To acts as trader of coal c oal and coke and other by-products directly or through agents. 16

disposal of 

10. To manufacture coke and other by-products of coal. 11. To act as colliery and mines proprietors coke manufacture in all their respective respective

branches.

The main project objective are to support the market-oriented reform India is undertaking in the sector and specially to provide financial and technical support of coal India’s effort to make itself  commercially viable and self-sustaining under pinning India’s broad drive to achieve economic growth. The project also aim to increase domestic supplies of coal by planning investment in the most  profitable 24 opencast mines of coal India for the power sector and other industries until imports and production from private investments can fill the merging supply gap.

ROLE OF CENTRAL COALFIELDS LIMITED

1. To get impleme implemented nted the the policy policy and and program program laid laid down by the the government government of

India. India. CIL

ensures working in accordance with the guidelines and directions issued by them from time to time. 2. To keep them informed of the program with regard to implementation of their policies and  progress in accordance with the guideline and direction issued by them. 3. To plan and carryout all operations in such a manner that there is no risk of loss, injury or  damage to the health of workman. 4. To adopt techniques and methods working such that loss of coal reserves by ways similar to other reasons and blockage of reserved in barriers etc. in the east. 5. To draw annual plans for production, preparation and dispatch of coal connect activities keeping in priority wise demand. 6. To maintain store of equipment, spares and other material to that necessary items are available in time without unduly blocking capital for propose. 17

7. To draw out inputs of various equipments that is plant and machinery, stores & spares, land and building etc. 8. To install maintain and operate plant and machinery property so that they are available for the working to maximum extend and to utilize them in the best possible p ossible manner. 9. To keep down cost in all possible ways so as to get maximum profit. 10. To arrange for necessary fund and utilize that in the most advantageous manner. 11.To take care of housing, water supply, recreational, education, medical & other

facilities

for the social security of employees to the extend it is reasonable & practicable. 12. To maintain harmonious industrial relation. 13. To arrange for security of company’s properties collective security of employees & their   properties maintenance of law & order in coordination with Government machinery. 14. To construct new project to meet the future need & to ensure timely communication & completion of jobs. 15. To promote marketing of products produc ts and to realize sales proceeds promptly. 16. To carry out studies with the view to asses to normal standard of performance in different spheres and to develop & implement incentives to increase efficiency.

18

PRESENT MANAGEMENT AT CCL

The Chairman cum Managing Director is the whole time chief executive of the company. The chief vigilance officer is responsible to see that the work is done as per p er the set rules producer  and guidelines and being the guilty to book secretary to board is responsible for keeping the meeting agenda. The board of directors consists of functioned directors and nominees from the state and central government. The functional Directors are personnel operations etc. All functional Directors are indirectly related to the areas General Managers. Each area General Manager is fully responsible for the performance of the area having separate project. Officer for  each project is supposed to achieve the projected projected target fixed by the company as a whole. Each   project has a colliery manager to individually supervise all types of activities like transport,  production sales realization. The functional Directors has separate departmental heads namely G.M. sales and marketing, qualit quality y control control,, financ financee person personnel nel admini administr strati ation. on. All have have separa separate te work work or duties duties but are indirectly related to each other.

19

BOARD OF DIRECTORS

Mr. R.K. Saha

Chairman-cum-managing Chairman-cum-managing Director (CMD)

DIRECTORS Mr. T.K.NAG

Directors (Tech/Oprn.)

Mr. T.K. Chand

Directors (personnel)

Company Secretary Shri C.V.N. Gangaram

Statutory Auditors Anand Rungta & Co. Chartered Accountants

20

ORGANIZATION CHART OF C.C.L.

CMD

DIRECTOR  FINANCE

DIRECTOR  PERSONNEL

DIRECTOR  TECHNICAL OPERATION

1. CMS SECRETARY (TO CMD)

2. HOD (L) GM OPERATION 3. GM (M/S) GM (Q.C) 4. GM HRD

GM (FINANCE) GM (SYSTEM) CHIEF OF INTERNAL AUDIT

GM (TRANS.) 5. GM (P& IR) GM (SAFETY) 6. GM (ADMIN.) GM (E & M) 7. GM (W & CD) 8. GM (EE) 9. DY. GM (TA) 10. CHIEF OF SECURITY

DIRECTOR  TECH. (PROJECT & PLAN) Executive Director  VIGILANCE GM (SALES & MARKETING) GM (GEO. SURVEY) GM (REVENUE) GM (MT.MGT) GM (CIVIL)

GM (EQUIP. & HEMM)

GM (CONST.)

GM (PROD.) 21

GM (S&IV) GM (CHP)

COMPANY SECRETARIAT

AREA (GM)

AVERAGE MANPOWER FOR LAST 5 YEARS AND AS ON 01.05.09

Year ending 31st March

2004-05

2005-06

2006-07

2007-08

2008-09

01.05.09

Average Manpower

68871

64200

61610

58808

56553

56383

22

COAL STOCK AT CURRENT POSITION

The stock of raw coal as on 31/7/2007 stood at 11.37 million tones. From which 58% is NON-COKING COAL 42% is COAKING COAL

23

PRODUCTION

The table below shows the production p roduction and productivity figures achieved by C.C.L during the year 2006-2007 as compared to the targets for the year and actual of 2005-2006. Particulars

2006-2007

Target

2007-2008

Actual Target

2008-2009

Actual

Target

Actual

42.31 1.83 44.14

46.75 2.2 5 49.00

41.68 1.5 6 43.24

Production

From OC (MT) From UG (MT) TOTAL (MT)

39.970 2.630 42.000

39.364 1.955 41.895

42 2 44

(OC- Open Cast Mining, UG- Under Ground mining, MT- Million Tones) 24

Graphical presentation of comparison of last five years production and productivity in C.C.L.

YEARS (y-axis shows production in million tones and X-axis shows years) UG-UNDERGROUND COAL MINING PRODUCTION OC-OPEN CAST COAL MINING PRODUCTION

INTRODUCTION

Webster’s dictionary defines a profession as “a calling, vocation or employment requiring specialized knowledge and often long and intensive academic preparation.” To qualify as a  profession, at least six characteristics must be present. •

A common body of knowledge

•

Agreed to performance standards

•

A representative professional organization

•

An external perception as a profession 25

•

A code of ethics

•

Agreed certification procedure

Although human resource has recently gained recognition as a profession compared to more established professions. The management of company’s people (human resource) has been a recognized, time-honoured function of every o rganization. Human resource management incorporates a number of interrelated job functions and work   processes, whose primary goal is to acquire and retain qualified, valued employees as a source of  competitive advantage for an organization. Typical HR functions include:

HUMAN RESOURCE PLANNING Anti Antici cipa pati ting ng and and maki making ng prov provis isio ions ns for for the the move moveme ment nt of peopl peoplee into into,, with within in and out out of  organization. Staffing

Locating potential applicants and encouraging them to apply for existing or anticipated job openings (recruitment) and choosing individuals who have relevant qualifications to fill existing or proj project ected ed job job openi openings ngs (rec (recru ruit itme ment nt)) and choo choosi sing ng indi indivi vidu dual alss who have have rele relevan vantt qualif qualificat ication ionss to fill fill existi existing ng or projec projected ted job openin openings gs (sele (selecti ction) on).Th .These ese tasks tasks are often often referenced together under a function called staffing.

Job design

Improving jobs through technological and human consideration in order to enhance organization efficiency and employee satisfaction.

Learning, developing and training

Design Designing ing and delive deliveri ring ng progra programs ms using using a variet variety y of methods methods to develo develop p an employ employee’ ee’ss knowle knowledge, dge, skills skills and abili abilitie tiess to work work at a satisf satisfact actory ory level of perfor performan mance ce on the job (training), and broaden an individual’s skills for future responsibilities (development). 26

Performance Management

Designing and developing programs and tools which help managers and employees establish   perfo performa rmance nce standa standards rds,, identi identify fy ways ways to impro improve ve perfor performan mance ce asses asses and docume document nt work  work   performance.

Compensation and benefits

Establ Establish ishing ing polici policies es and develop developing ing progra programs ms that that fairl fairly y compen compensat satee employ employees ees for work  work   performance and meet the strategic objectives of the organization. Direct compensation includes wages, salaries, incentives, bonuses and commissions. Indirect compensation includes the benefit   provided by employers to improve employee’s quality of life. Example of some employee include – compensation insurance contributions, health care, paid vacation, sick level programs, Canada compensation plan, Employment insurance and Workers compensation. Payroll is also a key responsibility included in the total compensation function.

Employee and Labour Relation

Designing and developing HR policies and practices that strive to maintain harmonious working relati relations onship hipss betwee between n depart departmen ments, ts, employ employees ees and manage managers. rs. Specif Specific ic functi functions ons includ includee employee communications and managing organization change, absenteeism, sexual harassment, employment equity, and diversity. When employees are unionized, the process (labour relations) includes includes developing developing maintaining maintaining effective effective working working relationshi relationships ps with representa representative tive unions, unions,  participating in collective bargaining, providing advice and guidance on grievance procedures and policy interpretation and managing workforce reductions.

Health and Safety

Designing and developing policies, practices and procedures that provide a hazard- free work    pla place ce and and comp comply ly with with all all appli applicab cable le gover governm nmen entt stat statut utes es and regu regula lati tions ons.. Addit Additio iona nall 27

requirement requirementss include include informing informing employees about health health and safety, safety, enforcing enforcing safety safety rules, rules, and keeping comprehensive records.

Human Resource Information Management

Designing and maintaining a computerized system that provides current and accurate data for the  purpose of control and decision making. In addition to storing and retrieving HR information, data data is used used to produc producee report reports, s, foreca forecast st HR needs, needs, establ establish ish strate strategic gic,, plans plans career careerss and  promotions, and evaluate HR policies and practices. But in today’s intensely competitive and global marketplace, a growing number of organization’s human resources are now viewed as a source of competitive advantage. There is a greater  recognization that distinctive competencies are obtained through highly developed employee skills, distinctive organizational cultures, management processes and systems. This is contrast to tradit tradition ional al emphas emphasis is on transf transfera erable ble resour resources ces such such as equipm equipment ent.. Increa Increasin singly gly it is being being recogni recognized zed that that compet competiti itive ve advant advantage age can be obtain obtained ed with with a high high qualit quality y workfo workforce rce that that enables organization to compete on the basis of market responsiveness, product and service quality, differentiated products and technological innovation. So, the new HR role is to be viewed from the strategic perspective wherein HR plays an important and vital role whilst designing and delivering the HR strategy for the organization. The approach of HR planning activity is no more in isolation but very much aligned to the strategy of  the organization as a whole delivering a strategic impact, the HR strategy needs to be in sync with with the busines businesss object objective ivess and the syste system m and proces processes ses incorp incorpora orated ted must must also also suppor supportt demons demonstra trati ting ng the requir required ed result results. s. Some Some of the unsucc unsuccess essful ful models models/st /strat rategy egy used used by the corporations are generalist strategy, personnel strategy, e-HR strategy, performance culture etc. The strategies or the models cited do have their own advantage and disadvantages .Some of the evaluation parameters worthwhile considering while planning the suitable strategy: Priority and focus, focus, likel likely y impact impact,, size, size, struct structure ure and organi organizat zation ion approp appropria riaten teness ess,, benefit benefitss and risks risks associated, associated, budget and time constraints constraints,, technology technology usage etc. More than the new strategic strategic role adopted by the HR fraternity; the contribution of the function has also seen a radical change in the the rece recent nt past. past. The The perf perfor orma mance nce asse assess ssme ment nt meth method odol olog ogy y and and meas measur ures es incor incorpor porat ated, ed, introducing HR scorecard and usage of ROI concept in measuring the performance of this function in terms of financial outputs, have allowed the HR function to crown the status of  28

Strat Strategi egicc Busine Business ss Units Units akin akin to other other functi functions ons.. As the indust industry ry rolls rolls into into the stream stream of  knowledge knowledge management concepts defining, sharing and impacting impacting of industry industry and role specific specific vital information, information, the HR profession professionals als are dealing dealing with knowledge and empowered empowered associates associates now now a days days.. This This neces necessi sita tate tess the the HR prof profes essi sion onal al to be compe compete tent nt on the the pers persona onall and  professional grounds requiring to have sound business knowledge, proactiveness and innovative. Managing change and diversity have become preponderant in the HR agenda. The cross- cultural and team becoming more obvious and common, HR often takes a consulting role within the organization enabling to build an employee oriented culture and climate. Combating with the acute attrition prevailing admits the knowledge industry, the HR professional are enforced to think out of the box to taste the success of their retention strategies. With the onus of creating an employ employee ee bardin barding-en g-enabl abling ing the corpor corporati ation on to attrac attractt the potent potential ial talent talents, s, the HR functi function on  bolsters the value proposition of the corporation.

Review of literature

•

Effectiveness of performance Appraisal system it is argued is a function of applying the right system in right context.  By Klein; The Art o Appraisal 

•

Performance appraisal system are “home work” that provides the information you need in order to make appropriate administrative recommendations, hold meaningful feedback  discus discussio sions ns with with staff staff member members, s, and determ determine ined d were were perfor performan mance ce improv improveme ement nt is required  By Marion E. Haynes; Managing Performance

29

•

The effectiveness of an Appraisal System is determined by the quality of communication  between the manager and staff member, not by multiple raters, complex scoring methods, or the form used. By John D. Drake; Performance Appraisal: One More Time

•

Performanc Performancee appraisal appraisal can actually actually be counter-pro counter-producti ductive ve for employees employees who are in the greatest need of training and further development dev elopment  By Victor Buzzottan; Improving your Performance Appraisal 

•

One of the measure reason Performance Performance management and Performance Appraisal Appraisal fail is is that too much time is spent on Appraising performance using vague criteria, and not enough time and effort put into helping employee understand what his job is about, and the goals and objectives he/she is expected to achieve to be successful. Learn to do goals setting painlessly.  By Robert Bacal; Learn to plan Performance and set employee goals

•

Maximizing and measuring our own performance and that of the people who work for us is a basic tenant of the work work environment. Always Always use of simple tool and approach that can be beneficial in achievement performance plan.  By Zack Mansdorf; Performance Management; Identifying work goals

•

Most Most manage managers rs and supervi supervisor sorss today today are attemp attemptin ting g to quantif quantify y their their departm department ental al objective and pass them on their employees through performance standards. Despite the simplicity of this management- by –objective approach, deadlines are missed, quality is relatively poor and productive is low. The reasons for this may not be the fault of the employees carrying out the work. The cause is most often associated with the immediate supervisor’s lack of attention to the realities surrounding objectives and performance standards require a careful analysis of all the relevant issues.  By Gregory Isaac; Plan for performance

30

•

Organizations striving to develop an open and participative approach have begun to give employees the chance to say what they think of their managers. Such appraisals can only work in a culture where mangers are willing to listen and learn and effect any necessary changes as a result.  By Madhukar Shukla; Upward Appraisal and Organizational and Organizational culture

•

At one stage performance performance appraisal relied mainly mainly on personalit personality y characteri characteristics stics.. Sub ordinates were being appraised by their superior on the extent to which they exhibited characteris characteristic tic like, like, tact, willingness, willingness, enthusiasm, enthusiasm, and maturity. maturity. Mangers were being put into position of psychologists and required to make subjective ratings without any point of reference expect their own opinion  By Bob Nelson; Performance Assessment 

•

Performance appraisal is a part is a part of overall performance management system of an organi organizat zation ion.. Throug Through h the apprai appraisal sal proces process, s, gap betwee between n an indivi individual dual’s ’s agreed agreed  performance standard his actual performance is assessed and appropriate strategies are drawn for subsequent performance cycle. This is a useful performance enhancement exercis exercise. e. In many many Organi Organizat zation ions, s, PMS PMS is linked linked with with other other syste systems ms like like salary salary & Benefits, Training &Development and Succession Planning.  By H.K.Shukla; Straties Human Resource Management  Resource Management 

•

Bi-directional performance recognizes that for performance to improve, both manager  and employee must receive feedback on how well they are fulfilling fulfilling their their obligations obligations to their organizations and to each other.  By Robert bacal; when Boss evaluates you

•

Most Most advocat advocates es of total total qualit quality y believ believee that that total total quality quality manage management ment (TQM) (TQM) and   perfo performa rmance nce apprai appraisal sal is incomp incompati atible ble.. For them them company company manage managers rs can choose choose to   pro promo mote te eith either er of thes thesee two two appr approa oach ches es but not not both both.. Sinc Sincee funda fundame ment ntal al TQM TQM requir requireme ements nts contra contradic dictt the basic basic elemen elements ts of perfor performan mance ce apprais appraisal, al, it would would be impossible to combine them. Thus, companies may have to re-examine their approaches to corporate leadership.  By, Peters Scholtes; TQM& Performance Appraisal  31

•

In recent year there has been a shift away from the traditional employee rating system, which places emphasis on the use of such rating for administrative actions to service ratings, which serves as a basis for counseling in employee regarding the improvement of  their their perfor performan mance ce of the job. job. For example example,, many many person personnel nel author authorit ity y believ believee that that disciplinary matters should be created in terms of specific causes rather than in terms of  general service-ratings programme the new look in employee ratings emphasize the use of performance evaluation and opportunity for the supervisor to give the employee a  better understanding of the job and what is expected of the employee the new look like wise provide the opportunity for the employee to give input into the scope and sequences of the task performed.  By, Krishna Raghvan; the Mantra of employee rating  system  system

INTRODUCTION OF P ERFORMANCE APPRAISAL

The history of performance appraisal is quite brief. Its root in the 20th century can be traced to Taylor’s pioneering Time and Motion studies. But this is not very helpful, for the same may be said about almost everything in the field of modern human resource management. As a distinct and formal management procedure used in the evaluation of work performance, appraisal really dates from the of the second world war-not more than 60 years ago. Yet in a broader sense, the practice of appraisal is a very ancient art. In the scale of things historical, it might well lay claim to being the world’s second oldest professional! There is, says Dulewicz (1989), “…a basic human tendency to make judgment about those one is working with, as well as about oneself.”Appraisal, it seems, is both inevitable and universal. In the absence of a carefully structured of appraisal, people will tend to judge the work performance of others, including subordinates, naturally and informally, arbitrarily. 32

The human inclination to judge can create serious motivational, ethical and legal problems in the  place. Without a structured appraisal system, there is little chance of ensuring that the judgment made will be lawful, fair, defensible and accurate. Perf Perfor orma mance nce appr apprai aisa sall syst system emss began began as simp simple le meth method odss of incom incomee just justif ific icat atio ion. n. This This 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 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. Little consideration, if any, was given to the developmental possibilities of appraisal. It was felt that a cut in pay, or a rise, should provide the only required impetus for an employee to either  improve or continue perform well. Sometimes this basic system succeeded in getting the results that were intended; but more often than not, it failed. For example, early motivational researchers were aware that different people with roughly equal work abilities could be paid the same amount of money and yet have quite different levels of  motivation and performance. These observations were confirmed in empirical studies. Pay rates were important, yes; but they were not the only element had an impact on employee performance. It was found that other issue, such as morale and self esteem, could also have a major influence As a result, the traditional emphasis on reward outcomes was progressively rejected. In the 1950s in the United States, 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 from that time. In today’s competitive world, various organization and companies are struggling for maximum consumer satisfaction and economic benefit. The degree of success that all employees have in reaching their desired goals is important in determining organization effectiveness.

33

The assessment of success achieved by employee becomes a critical part of HRM. This leads us to the need of performance appraisal. In simple terms, performance appraisal may be understood as the assessment of an individual’s performance in a systematic way. A formal definition of performance appraisal is: “It is the systematic evolution of the individual with respect to his or her performance on the job and his or her potential for development.” Performance Appraisal can be understood as: A formal formal,, struct structure ured d syste system m of measur measuring ing and evaluat evaluating ing an employ employee’ ee’ss job relate related d  behaviors and outcomes to discover how and why the employee is presently performing on the job and and how how the the empl employ oyee ee can can perf perfor orm m more more effe effect ctiv ivel ely y in the the futu future re so that that the the empl employ oyee ee ,organization, and society all benefit.

OBJECTIVES OF PERFORMANCE APPRAISAL

Data relating to performance assessment of employees are recorded, stored, and use for several  purposes. The main purposes of employees assessment are: 1. To effect effect promotion promotion based on competenc competencee and performance. performance. 2. To conf confir irm m the the serv servic ices es of prob probat atio ionar nary y empl employ oyee eess upon upon thei theirr compl complet etin ing g the the  probationary period satisfactorily. satisfactorily. 3. To assess assess the the trainin training g and developme development nt needs of employee employees. s. 4. To decide decide upon a pay raise where where (as in the unorgani unorganized zed sector) sector) regular regular pay pay scale scale has  been fixed.

34

5. To let let the the empl employ oyee eess know know wher wheree they they stan stand d in so far far as their their perfo perform rman ance ce is concerned and to assist them with constructive criticism and guidance for the purpose of their development. 6. To improv improvee commun communica icati tion. on. Perfor Performan mance ce Apprais Appraisal al provid provides es a format format for dialogue dialogue  between the superior and the subordinate, and improves understanding of personal goals and concerns. This can also have the effect of increasing the trust between the rater and the ratee. 7. Finally, Finally, Perform Performance ance Appraisal Appraisal can can be used to determined determined whether whether HR programm programmes es such as selection, training ,and transfers have been effective or not. Broadly, performance Appraisal serves four objectives I. II.

Developmental uses, Administrative uses/decision

III.

Org Organizational maintenan enancce/ objectives ves and

IV.

Documentation purposes.

MULTIPLE PURPOSE OF PERFORMANCE ASSESSMENT

General Application

Specific Purpose

Developmental uses

Identification of individual needs Performance feedback  Determining transfer and job Assignments Identification of individual 35

Strengths and developmental needs

Administrative uses/ Decisions

Salary Promotion Retention of termination Recognition of individual Performance Lay-offs Identification of poor Performers

Organizational maintenance/ objectives

HR Planning Determining organization Training needs Evaluation Evaluation of organizatio organizational nal goal Achievement Information of goal identification Evaulation of HR systems Reinforcement of organizational Development needs.

Documentation

Criteria for validation research Documentation for HR decisions Helping to meet legal requirements

36

THE APPRAISAL PROCESS

The proces processs of apprai appraisal sal begins begins with with the establ establish ishmen mentt of perfor performan mance ce standar standards. ds. These These  performance standards should be clear and objective enough to be understood and measured. The next step is to communicate these standards to the employees. To make the communication effective, ‘feedback is necessary from the subordinate to the manager. The third third steps steps in the apprai appraisal sal process process are the measur measureme ement nt of perfor performan mance. ce. This This step step is concerned with the decision on appraisal method and implementation of the system selected. The fourth steps in the comparison of actual performance with standards. At the next step, the results of appraisal are discussed periodically with the employees, where strength, weakness and difficulties are discussed so that performance can be improved. The final step is the initiation of corrective action whenever necessary. 37

METHODS OF APPRAISAL

 Numerous methods have been devised to measure the quantity and quality of employee’s job  performance. Broadly all the approaches to appraisal can be classified into: 1 Past oriented methods, 2 Future oriented methods. Each group has several techniques for appraising employee’s performance

38

METHODS

PAST-ORIENTED

FUTURE ORIENTED

Rating scales

Management by objective

Checklist Forced choice method Forced distribution method

360-Degree appraisal

Critical incident methods Behaviorally anchored scales 39

Field review methods Performance tests and observations

Psychological appraisal

Annual confidential reports Essay methods Cost accounting approach Comparative evaluation approach

Assessment centre

1. PAST –ORIENTED METHODS

Ratings scales

This is the simplest and most popular technique for appraising employee performance. The typical rating scale system consists of several numerical scales, each representing a job-related  performance criterion such as dependability, initiative, output, attendance, attitude, co-operation, and the like. Each Each scales scales ranges from excellent excellent to poor. poor. The rater checks checks the approp appropria riate te  performance level on each criterion, then computes the employee’s total numerical scores.

Checklist

Under Under this method method,, a checkl checklist ist of stateme statement nt on the trait traitss of employ employee ee and his or her job is  prepared in two columns-viz,a ‘Yes’ column and a ‘No’ column. All that the rater (immediate superior) should do is tick the ‘Yes’ column if the answer to the statement is positive and in column ‘No’if the answer is negative. After ticking off against each item, the rater forwards the list to the HR department where the actual assessment of the employee takes place. The HR  department assigns certain points to each ‘Yes’ ticked. Depending on the number of ‘Yes’ the 40

total score is arrived. When points are allotted to the checklist, the technique becomes a weighted checklist.

FORCED CHOICE METHODS

In this the rater is given a series of statements about an employee. These statements are arranged in blocks of two or more, and the rater indicates which statements are most or least descriptive of  the employee. This method is known as the forced choice methods because the rater is forced to select statements which are readymade.

FORCED DISTRIBUTION METHOD

One of the errors in rating is leniency-clustering a large number of employee around a high point on a rating scale. The forced distribution method seeks to overcome the problem by compelling the rater to distribute the rates on all points on the rating scale. The method operates under an assumption that the employee performance level conforms to a normal statistical distribution. Generally it is assumed that employee performance level conforms to a bell-shaped curve

CRITICAL INCIDENTS METHOD

The critical incidents methods of employee assessment have generated a lot of interest these days. The approach focuses on certain critical behaviors of an employee that make all the difference between effective and non-effective performance of a job. Such incidents are recorded  by the superiors as and when they occur.

BEHAVIORALLY ANCHORED RATING SCALES

Behaviorally anchored scale, sometimes called behavioral expectation scales, are rating scales whose scale points are determined by statements of effective and ineffective behaviors. They are 41

said to be behaviorally anchored in that the scales represent a range of descriptive statements of   behavior varying from the least to the most effective. A rater must indicate which behavior on each each scale scale best best descri describes bes an employ employee’ ee’ss perfor performan mance. ce. Behavi Behaviora orally lly anchor anchored ed rating rating scales scales (BARS) have the following features: 1. Areas of performance to be evaluated are identified and defined by the people who will use the scales. 2. The scales scales are anchor anchored ed by descri descripti ptions ons of actual actual job behavio behaviors rs that, that, superv superviso isors rs agree, agree, repres represent ent specifi specificc level level of perfor performan mance. ce. The result result is a set of rating rating scales scales in which which both both dimensions and anchors are precisely defined. 3. All dimensions of performance to be evaluated are based on observable behaviors and are relevant to the job being evaluated since BARS are tailor made for the job. 4. Since the raters who will actually use the scales are actively involved in the development  process, they are more likely to be committed to the final product. BARS were developed to provide results which subordinates could use to improve performance. Supervisors would feel comfortable to give feedback to the ratees.

FIELD REVIEW METHOD

This is an appraisal by someone outside the assesse’s own department, usually someone from the corpor corporate ate office office or the HR depart departmen ment. t. The outsid outsider er review reviewss employ employee ee record recordss and holds holds interviews with the rate and his or her superior. The method is used for making promotional decision at the managerial level.

PERFORMANCE TESTS AND OBSERVATIONS

With a limited number of jobs, employee assessment may be based upon a test of knowledge or  skills. The test may be of the paper-and-pencil variety or an actual demonstration of skills. The test must be reliable and validated to be useful. Even then, performance tests are apt to measure  potential more than actual performance.

42

CONFIDNTIAL RECORDS

Confidential records are maintained mostly in government departments, though its application in the industry is not ruled out. ITI, for example had followed method for a long time. Called the Annual Confidential Report (ACR),

The approach had 14item1. Attendance nce 2. Self-e Self-expr xpress ession ion (wri (writte tten n or oral oral)) 3. Abil Abilit ity y to wor work k with with oth other erss 4. Leadership hip 5. Initiative 6. Techni Technical cal abilit ability(j y(job ob know knowled ledge) ge) 7.

Ability to understand new material

8.

Ability to reason

9.

Originality and resourcefulness,

10. Areas of work that that suits suits the the person best, 11. Judgment 12. Integrity 13. Responsibility, and 14. Defect-indebtedness, memo served, etc.

twelve of these were filled on a four point grade scale (Excellent, Good, Fair, Poor).For integrity, there there were were specia speciall instr instruct uction ionss from from the manage management ment.. Justif Justifica icatio tion n was separa separatel tely y given given 43

(outstanding, Very good, Average, Poor), again with justification for rating as outstanding or   poor. Recommendation Recommendationss for promotion were also given. The ACR contained recommendations recommendations and signature of the rater, the head of the department and the CMD. The system was highly secretive and confidential. Feedback to the assesses was given only in case of an adverse entry. The ACR was highly subjective. Ratings were easily manipulated  because the evolution was linked to promotion. Even ITI has discontinued this system for these reasons

Essay Method

In the essay method, the rater must describe the employee within a number of broad categories, c ategories, such as 1. The rater’s rater’s overal overalll impression impression of the employ employee’s ee’s perform performance, ance, 2. The promot promotabi abilit lity y of the empl employe oyee, e, 3. The jobs jobs that the the employee employee is now able able to or qualifi qualified ed to performe performed, d, 4. The stren strength gthss and weakne weakness ss of the the employe employee, e, and 5. The trainin training g and development development assis assistance tance require required d by the employee. employee. The strength of the essay method depends depen ds on the writing skills and analytical ability of the rater. Although this method may be used independently, it is most frequently found in combination with others. It is extremely useful in filing information gaps about the employee.

COST ACCOUNTING METHOD

This method evaluates performance from the monetary returns the employee yields to his or her  organization. A relationship is established between the cost included in keeping the employee 44

and the benefit the organization derives from him or her. Performance of the employee is then evaluated based on the established relationship between the cost and the benefit.

COMPARATIVE EVALUATION APPROACHES

These are a collection of different methods that compare one worker’s performance with that the of his/her co-workers. As these appraisals can results in a ranking from best to worst, they are useful useful in decidi deciding ng meritmerit-pay pay increa increases ses,, promot promotion ionss and organi organizat zation ionss reward rewards. s. The usual usual compar comparati ative ve forms forms used in this this kind kind of evaluat evaluation ion are the rankin ranking g method method and the paired paired comparison method.

RANKING METHOD

In this, the superior ranks his or her subordinates in their merit, starting from the best to the worst. All that the HR department knows is that A is better than B. The ‘how’ and ‘why’ are not questioned, nor answered. No attempts are made to factionalize what is being appraised into component elements. This method is subjected to the halo and regency effects, although rankings  by two or more raters can be averaged to help reduce biases.

PAIRED-COMPARISON METHODS

Under these methods, the appraiser compares each with every other employee, one at a time. For  example, there are five employees named A, B, C, D, and E. The performance of A is first compared with the performance of B and a decision is made about whose performance is better. Then A is compared with C, D and E in that order. The same procedure is repeated for other employees. The number of comparisons may be calculated with the help of this formula:  N (N-1)*1/2 where N stands for the number of employee to be compared. After the completion completion of comparison, the results can be tabulated, and a rank is created from the number of times each  person’s is considered to be to  be superior.

45

2. FUTURE-ORIENTED APPRAISALS

It is enough if only the past performance is assessed. How an employee can perform in the days to come is equally important. This can be assessed by focusing on employee potential or setting future performance goals. The commonly used future-oriented techniques are:

MANAGEMENT BY OBJECTIVES (MBO)

It was Peter F.Drucker who first gave the concept of MBO to the world back in 1954 when his The Practice of Management was first published. The MBO concept, as was conceived by Drucker, reflects a management philosophy which values and utilizes employee contribution. How MBO works can be describes d escribes in four steps: The first step is to establish the goals each subordinates is to attain. In some organization, superiors and subordinates work together to establish goals. In others, superiors established goal for subordinates. The goals typically refer to the describes outcome to be achieved. These goals can be then by used to evaluate employee performance. The second step involves setting setting the performance performance standard standard for the subordinates subordinates in a previously previously arranged time period. As subordinates perform, they know fairly well what there is to do, what has been done, and what remains to be done. In the third step, the actual level of goal attainment is compared with the goal agreed upon. The evaluator explores reasons for the goals that were not met and for the goal that were exceeded. This step helps determine possible training needs. It also alerts the superior to conditions in the organization that may affect a subordinate but over which the subordinates has no control. The final final step step involv involves es establ establish ishing ing new goals goals and, possib possibly ly,, new strate strategie giess for goals goals not  previously attained. At this point, subordinates and superior involvement in goal setting may 46

change. Subordinates who successfully reach the established goals may be allowed to participate more in the goal setting process the next time. The process is then repeated.

MBO MBO has been been crit critic iciz ized ed also also.. One One comm commen entt made made agai agains nstt the the appro approac ach h is that that it is not applicable to all jobs in all organizations. Jobs with little or no flexibility, such as assembly-line work, are not compatible with MBO. An assembly line worker usually has so little job flexibility that the performance standards and objectives are already determined. The MBO process seems to be most useful with managerial personnel and employee who have a fairly wide range of  flexibility and self control in their jobs. Besides when the results of an MBO system are to be used to all to allocate allocate organizational organizational rewards, employees employees may be less to less likely to establish challenging goals. They are confident that they can accomplish. Further, the allocation of merit   pay on a semi-annual or annual basis may encourage the setting up of goals with short tune horizons to the disadvantage of important long term goals.

PSYCHOLOGICAL APPRAISALS

Large organizations employ full-time industrial psychologist. When psychologists are used for  evaluations, they assess an individual’s future potential and not past performance. The appraisals normally consist of in-depth interviews, psychological test, discussion with supervisors and a review review of other other evalua evaluati tions ons.. The psycho psycholog logist ist then then writes writes an evaluat evaluation ion of the employ employees ees intellectual intellectual,, emotional emotional motivation motivationss and other related characteri characteristics stics that suggest suggest individual individual  potential and may predict future performance. The evolution by the psychologist mat be for a specific job opening for which the persons for which the persons is being considered, or it may  be a global assessment of his or her future potentials. From these evaluations, placement and development decisions may be made to shape the persons career 

ASSESSMENT CENTERS

An assessment centre is a central location where managers may come together to have their    participat participation ion in job related related exercises evaluated evaluated by trained observers. observers. The principle principle idea is to evaluate managers over a period of time, say one to three days, by observing (and later  47

evaluating) their behaviors across a series of select exercises or work samples. Assesses are requested to participate in in-basket exercises, work groups (without leaders),computer 

simula simulatio tions, ns, role role playin playing, g, and other other simila similarr activi activitie tiess which which requir requiree the same same attrib attributes utes for  successful performance, as in the actual job. After recording their observations of rate behaviors, the raters meet for the discussion of observations. Self-appraisal and peer evaluation are thrown in for final rating. The characteris characteristics tics assessed in a typical typical assessment assessment centre include include assertiven assertiveness, ess, persuasive ability, communicating ability, planning & organization ability, self confidence, and résistance to stress, energy level, decision-making, sensitivity to the feelings of others, administrative ability, creativity and mental alertness. First developed in the US and the UK in 1943, the assessment centre is gaining popularity in our  country. Crompton Greaves, Eicher, HLL, Modi Xerox are using the technique with results being highly positive. The problem with the assessment centre is their cost. Not only are the assesses away from their   jobs while the company pays for their travel and loading, but the evaluators are often company managers who are assigned to the assessment centre for short durations. These managers are often supplemented by psychologists and HR specialists who run the center and also make evaluations. Hence this approach is cost-effective only in large organizations. Assessment-center staffs are often influenced by subjective elements, such as personality of the candidates. Raters tend to evaluate the quality of the individual’s social skill rather than the quality of the decisions he/she makes. Assessment center ratings seem to be strongly influenced  by the participant’s interpersonal skills. The approach also involves real hazards. One of the most obvious is the examination-taking synd syndro rome me.. Soli Solid d perf perfor orme mers rs in day day to day day opera operati tion onss feel feel suff suffoca ocate ted d in the the simu simula late ted d environment. Another drawback is its potential adverse effect on those not selected to participate in the exercise.

48

Employee who receives a poor report from the center may react in negative ways. A rejected employee would return to his or her former job, satisfied that he or she would not be promoted to a job he/she couldn’t handle. However, a good performer at one level may leave the organization

in order to remove the bad assessment report from his or her work record. Thus, a poor report can demoralize an employee who was once an asset. But a well-c well-condu onducte cted d assess assessmen mentt center center can and does does achiev achievee better better forecas forecastt of fortun fortunee  performance and progress than other methods of appraisal. Also, reability, content validity, and  predictive validity are said to be high in the assessment centers. The The test test also also make makess sure sure that that the the wrong wrong peopl peoplee are are not hire hired d or prom promot oted ed.. Fina Finall lly, y, the the assessment-center test clearly defines the criteria for selection and promotion.

360-Degree Feedback 

Where multiple raters are involved in evaluating performance, the technique is called 360-degree appraisal. The 360-degree technique is understood as systematic collection of performance data on an individual or group, derived from a number of stakeholders-the stake being the immediate supe superv rvis isor ors, s, team team memb member ers, s, custo custome mers rs,, peer peerss and and self self.. If fact fact,, any one who has has usef useful ul information on ‘how an employee does the job’ may be one of the appraisers. The 360-degree appraisal provides a broader perspective about an employee’s performance. In addi additi tion, on, the the tech techni nique que faci facili liti ties es grea greate terr self self devel developm opmen entt of the the empl employ oyee ee.. For For one’s one’s development, multi-source feedback is highly useful. It enables an employee to compare his or  her perception about self with perceptions of others. Besides, the360-degree appraisal provides formalized communication links between an employee and his or her customer. It makes the empl employ oyee ee feel feel much much more more acco account untab able le to his his or her her inte intern rnal al or exte extern rnal al cust custom omer ers. s. The The techniques are particularly helpful in assessing softs skills possessed by employees. By design, the 360 degree appraisal is effective in identifying and measuring interpersonal skills, customer’s satisfaction, and team-building skills.

49

However, there are drawbacks associated with the 360-degree feedback. Receiving feedback on  performance from multiple sources can be intimidating. It is essential that the organization create a non-threatening environment by emphasizing the positive impact of the technique on an

employee’s employee’s performance performance & development development.. Further, Further, firms that use the technique take a long time on selecting and the rater, designing questionnaires and analyzing the data. In addition, multiple raters are less adept at providing a balanced and objective feedback than the supervisors who are sought to be replaced. Raters can have enormous problems separating honest observation from  personal from personal differences and biases. Pitfalls notwithstanding, more and more number of firms are using the 360-degree appraisal technique to assess the performance of their employees.

APPRAISALS ERRORS

The ideal approach to performance appraisal is that in which the evaluator is free from personal   biases and prejudices. But there are many significant factors which deter or objective of the evaluation.

1. Leniency Error:every evaluator has his own value system which acts as a standard against which he makes his appraisals. Relative to the true or actual performance an individual exhibit .This is the tendency of awarding higher marks than what is really due. This depends on variation of  value system or standard between different raters.

1. Halo Effect :-

sometimes an employee can create a certain impression on the rater because of some incide incidents nts or behavi behavior. or. This This could could be either either positi positive ve or negativ negative. e. For example, example, an empl employ oyee ee migh mightt have have been been sele select cted ed as a cham champi pion on in athl athlet etic icss meet meet.. This This good good impression has a tendency to influence the rater to provide higher marks on all factors 50

 being evaluated. Similarly a person who is shabbily dressed for an interview give a bad impression on the rater which carry negative feedback, while he is being appraised, giving a chance of putting less marks on all points in the appraisal a ppraisal card.

2. Similarity Error :-

This is the situation in which apprisee possesses a certain similarity or identity with the rater himself. It could be identity in ideology, personality, cast, creed or language etc.

3. Central Tendency :-

Appraisers have a tendency to play safe. This results in ratings all employees “above average” average” or “good”. Normally Normally in all organizations organizations there there are about 10 percent percent excellent and 10 percent very poor. One cannot ignore this aspect.

4. Reward Effect :-

Some time rating can effect promotion or some such reward to which the employee is a candidate. The tendency of ratter is to award some “extra marks” in such occasions. 5. Rece Recent nt Incide Incident nt Eff Effec ects: ts:--

 Normally  Normally the annual appraisa appraisals ls are made some time time in the month of December December every year. This is the error in which the rater is biased because of certain incidents which occurred during a period just prior to the date of appraisal. If such an incident has created a good impression impression on the rater, rater, it leads to award of “higher “higher marks” than than deserved and vice-versa.

6. Rate Raters rs Er Erro ror: r:--

If the rater is only one , all the above errors will have little effect in rankings since errors are equally effected to all the employees even ev en though individual marks vary from realistic 51

analysis . The problem becomes acute when raters are many. We have different type of  raters, raters, very strict strict or very relaxed. The strict raters put lesser lesser marks whereas whereas the relaxed raters give very high marks. Thus, the employees who are marked/appraised by strict rater suffer because the annual confidential reports contains the rater marks of appraisal, which form the basis of further promotion or lucrative assignment or choice transfer etc. The personality of rater is another factor for such errors. For example the marks allotted allotted will be generally on the lower side by a rater who believes in “Theory of X” compared to another rater who believes in “Theory of Y”.

52

METHODS OF IMPROVING PERFORMANCE APPRAISAL 1. Use Behaviour Based Scales:-

The BARS should be used instead of traits or personality attributes for appraisal. 2. Combine individual and group ranking:-

These are the methods of classifying employees in various grades and indicate position of each empl employ oyee ee in thei theirr resp respec ecti tive ve in thei theirr grad grades es.. This This will will also also reve revell the the natur naturee (str (stric ictt or  relaxed)raters and might help to correct them. 3. Continuous feedback:-

If the superior and worker interact often and confront problems, solution and performance, annual appraisal will not be a surprise to the subordinate. A sort of partnership can develop where supervisors continuously appraises him the areas requiring improvement. 4. Multiple Raters:-

Uses of multiple raters minimize raters error discussed above. This can also assist to employ suitably qualified and competent rater to appraise a person in specialized areas. This latter  method is also called “Selective Rating Method”. 5. Training Appraise/Raters:-

Suitable training assist a lot to bring in uniformity in criteria and measurement of performance. 6. Peer Evaluation:-

Here peers are asked to evaluate their colleagues and suitable weight age is assigned.

7.Rewards to Accurate Appraise/Raters:

This will provide the following 1. Improve motivation to become objective in appraisal. 2. Improve value of appraisal. Very often raters consider, rating is a routine affair which has “no value” on career   prospects/promotion etc.of employees.

53

OBJECTIVE OF THE STUDY

Main objective for the study of Performance Appraisal in CCL are as follows:1. To study in in detail detail the actual actual working working of a modern modern Performanc Performancee Appraisal Appraisal System. System. 2. To know the the method method of Appraisal Appraisal in CCL, CCL, and its effect effective ivenes nesss on the workers workers and to find out how much the system is effective in reaching its target. 3. To interact interact at different different level level of the organization organization to formula formulate te an overall opinion opinion regarding regarding the Performance Appraisal System. 4. To know the level level of satisfacti satisfaction, on, then reaction reaction against against the system, system, scope scope of introducin introducing g new and most modern technique of Appraisal.

54

METHODOLOGY

Performance appraisal practice in any sector becomes effective only when the outcome of the deliverable meets business requirements. This gets reflected in the matching of human business requirements that embark upon after having effective and robust appraisal process which focuses on competence need identification. With this in mind a survey was conducted by the researcher  to see whether the objective laid down by the organization regarding performance appraisal was obtained or not The questionnaires were distributed among the executive and non-executive staff and were to be filled by them. The researcher met some of the employee personally and interviewed them. The questionnaire was collected later on further analysis.

METHODS OF DATA COLLECTION

The task of data collection begins after a research problem has been defined and research design/  plan chalked out. While deciding about the method of data collection to be used for the study, the researcher should keep in mind two types viz; primary and secondary .

METHODS OF PRIMARY DATA COLLECTION

1. Questionnaire 2. personal Interview

55

1. Questionnaire:

Questionnaires were distributed among the eligible participants and were to be filled by them .The .The rese resear arche cherr expla explain ined ed the the ques questi tions ons to the the parti partici cipan pants ts who who were were unabl unablee to get get the the implication of the given question and helped in filling up the questionnaire. The questionnaires were collected later for further analysis.

2. Personal Interview: While conducting the survey the researcher went to every department

and interviewed non-executive staffs. For getting a full picture of performance appraisal system  prevailing at CCL and its pitfalls, it was necessary or needs of the time to conduct an interview of employees at different levels.

Secondary data collection:Researcher used data that were published in these forms:1. Technical and Trade journals 2. Books, Magazines and News papers 3. Reports and Publications of various associations connected with business and industry.

SIZE OF SAMPLE 56

The sample of study for employees 10% of the universe i.e non-executive (which was1300) of  different department which were randomly selected by the researcher.

UNIVERSE

The universe for researcher for constituted of all non executives working in various department at C.C.L Darbhanga House, Ranchi (Head Quarter).

CONSTRAINTS IN DATA COLLECTION

While doing the project the researcher faced many difficulties as a result of which the number of  responses received were less than expected number. 1. Some participants were reluctant to fill up the questionnaire with the excuse that they were not allowed to share such information related to their Performance Appraisal. 2. Some of the staffs were not at all willing to corporate due to which the researcher had taken  best effort to persuade then to come on but result was not satisfactorily.

PERFORMANCE APPRAISAL SYSTEM AT A GLANCE 57

(Adopted for the year 1986-87 on words) Performance appraisal system for EXECUTIVE level employees in CCL is known as Executive Evolution Report (EER).

The main objective of the (Executive Evaluation Report)is to evaluate and identify potential and development needs for the Executive’s growth towards achievement of corporate objective. Performance appraisal of Executives employees in CCL is carried out through Self-appraisal and Rating method. The promotion criteria in CCL are divided into two categories depends upon the level of the  posta) The officer of E-5 rank and below –  The promotion is done on the basis of seniority cum merit basis i.e. seniority is given higher  weightage than merit.  b) The officer of E-6 rank and above The promotion is done on the basis of merit cum seniority i.e. merit is given higher weightage than seniority. Rating of the Executive employees is done by the appraisee’s reporting officer and then it is reviewed by the two reviewing officer one by one and at lastly rating is done by the Functional Head of the organization. Appraisal Year: 12 months (1st April to 31st March) March) Approp Appropria riate te PAR from will will be made made available to the executives (appraise) by the personnel department in the first week of April every year. The performance appraisal system followed at CCL is objective and step by step method. Apprise: executive working under a superior. Appraise1st: Under whom the Appraise works

.

2nd: Executive who functionally or directly oversees the activities of the App raise. 3rd: Any other who functionally or directly oversees the activities of the Appraise. 58

Reviewer: A very senior officer (Functional Head of the organization) who gives final grading

on the PAR  The whole process of performance evaluation involves the following steps.

FIXING OF TAAD

SELF APPRAISAL BY  THE EMPLOYEE

ASSESSMENT OF RATING THE RATING  THE EMPLOYEE’S

REVIEW OF THE GRADING BY THE 1 st LEVEL REVIEW

REVIEW OF THE GRADING BY THE 2 nd LEVEL REVIEW OFFICER

FINALIZATION OF THE GRADING BY THE FUNCTIONAL HEAD OF

Grading system (overall)

59

A: Outstanding B: Very Good C: Good D: Average E: Below Average Grading for personality and potential traits

G: Good  N: Normal P: Poor  Developments needs: in respect of training specific recommendation about the topic be mentioned. The suggestion for job- rotation be indicated by putting ( ) tick mark columns. Form

A: Grade E5 to E9 all disciplines d isciplines working at Headquarters area and other offices B: E5 to E9 posted at collieries /washeries /Workshop/ subareas and executives in charge of  define area of activities C: For executives of grade E1 to E4 of all disciplines D: For directly recruited officers for competitions of probation period, after 12 months E: For JET / Management Trainee/ LWO for initial training of 1 2 months or more. F: For the promoters for assessment of 12 months performance, for completion of probation  period. Interim performance report (IPR) be used for period prior to promotion or period after the clearance of probation period, till the beginning or end of the appraisal ap praisal year.

60

OBJECTIVES AND RULES

The essential features of the Performance Appraisal System are: 1: Analysis of performance essentially with a view to determine the input to effort and not necessarily the output only. 2. To bring into sharper focus results achieved in respect of key areas. 3. Analysis of the potential features of appraise’s personality, both professional and management for his development in the organization. 4. To suggest the area of further development in respect of nature of assignment. 5. Suggestions with regard to training on the job and off the job, for further growth and development. The proposed performance seeks to provide guideline to the Appraiser to make PAR system deve develo lopm pment ent orie orient nted ed thro through ugh shar sharper per analy analysi siss of the the indi indivi vidu dual al,, the the

situ situat atio ion n & the the

organizational demands. The system also would help locating executives with different potential strength who could meet the organizational needs of higher production through induction of new technology and at lower  costs. We could call such executives as high flyers who has to be encouraged to continue to  perform even better in the future. On the basis of feedback received about feasibility or executives performance appraisal system designed during 1987, further modification and structuring was done named as CIL Executives Evaluation Report(Task Assignment & Document) came out during 1993-1993 and since then it is operative accordingly.

GUIDELINE FOR EXECUTIVE EVALUTION REPORT (EER) 61

The The OBJE OBJECT CTIV IVE E of the the EXEC EXECVT VTIV IVE E EVAL EVALUT UTIO ION N REPO REPORT RT (EER (EER)) is to evalu evaluat atee  performance and identify potential and development needs for the Executive’s growth towards achievement of Corporate Objectives. 2.1) In the circumstances circumstances , it is necessary that that the target are assessed assessed taking into account the constraint constraints. s. As such, the first requirements requirements is the preparation preparation of accepted Task Assignment Assignment & Acceptance Documents(TAAD) by reporting authority ,in the consultation with the appraise, by the end of the financial year. Four –monthly review will be made in regard to the task   performance on the basis of the task Assignment & Acceptance Document in which the task to  be performed during a particular four months p eriod will be indicated by the controlling officer. 2.2) While preparing the key task for the TAAD, the following parameters (which are relevant to the appraisee) shall be given under unde r different task areas: Quality

Industrial Relation

Quantity

Welfare

Development

Asset Management

Cost

etc.

3.) As the planning in terms of the frame for the jobs is necessary for achieving the target, the Appraise should discuss the 4 program of task with the Appraisee and finalize it. This would be supporting documents for monitoring the progress for every four months. The Reporting Officer  will discuss the assigned task etc. with the Appraisee before the beginning of every four months and record in this documents 4.) With the completion of the Assessment year the appraisee will be supplied with the EER  from from duly duly number numbered ed by the Execut Executive ivess Establ Establish ishmen mentt Depart Departmen mentt direct directly ly,, by the end of  January, so that format should be available with the appraise latest by 28th February. Self  Appraisal in the printed format duly filled is must be handed over to the reporting officer by 30 th April.

62

5.1) the reporting officer will complete his evaluation and send it to the first level reviewer by 15th may. 5.2) If the reviewing officer (both Staff and Line) differs differs with the assessment assessment of the Reporting Officer, he should give reasons for final grading with the final comment. The first reviewer will complete the evaluation and same to the Second level review officer (both Staff and Line) by 15th June. 5.3)The second level reviewing officer (both (both Staff and Line)y will evaluate the performance by 30th June giving reasons, if any, for disagreeing with the first level Review Officer. 5.4) Subsequent to the above, the EER shall be sent to the functional head of the company for his review, and within 15days thereafter to the Executive Establishment Department for record, the reporting officer shall not initiate the EER unless the appraisee has worked at least for a period of 4 (four) months under him in the relevant assessment. 5.5)In case there is a difference of opinion between the first level review officer and the second level Review Officer, the EER shall be sent to the 3rd Level Review Officer. 6) The following approach has been b een considered for the overall assessment. 6.1)For officer of the rank of E-6 and below, the performance evaluation with reference to the task performed as mentioned in TAAD shall carry 60 marks as against 40 marks for the  personality Traits, Leadership and other criteria. 6.2) 6.2)In In the the case case of offi office cers rs of E-7 E-7 rank rank and and above above leve levels ls,, since since Mana Manager geria iall skil skills ls,, Unio Union n Management, Decision Making, judgment etc. are considered equally important , 50 marks have  been assigned for personal Traits and remaining 50 marks for performance. 6.3) while reviewing the EER, the Reporting Officer shall take into consideration performance as well as the constraints and arrive at his final Marking/Rating.

7.) It is the intention of the company to identify the High performance with a view to develop their potential and utilize them in the overall interest of the company. As such, the format  proposed has taken into consideration the grading under four categories as follows: 63

Excellent: 85-100

Adequate: 41-59

Commendable: 60-84

Inadequate: 40 and

(Note: it is expected that the First Level Review Officer will discuss with the Appraise and Reporting Officer in all cases where the grading of the officer is either INADEQUATE or  EXCELLENT. All such cases of the Executives whose ranking has been EXCELLENT or  INADEQUQTE shall also go to the third level reviewing authority.) 8) The grading of ADEQUATE and INADEQUATE shall be communicated to the Executive immediately after receipt of his report from the Executive Establishment Department. 9. (a)The EER of Executive Executive whose ranking ranking have been INADEQUATE INADEQUATE shall be considered considered by a committee of Director(Personnel), Director (Tech) and the Functional head to check, if any mode modera rati tion on is requ requir ired ed and and to arri arrive ve at the the actio action n to be take taken n by the the comp company any,, for for the the development of these Executive.  b) The EER of Executive whose ranking has been Excellent shall considered by a Committee of  Directors (Pers.), Directors (Tech.) and the Functional Head to check, if any moderation is required and to arrive at such steps that may be necessary for further development of the executives. 10. Similarly in the case of EERs maintained at the level of CIL Hqrs, the review on similar line shall be undertaken by a committee consisting of Directors (P&IR), Directors (Tech), and the functional Head. 11. Personnel Department of coal India Ltd. Will send appropriate instructions with regard to the details as to initiation of EER and review of EER etc.  Note : (1) In keeping with objective of this EER,as stated in Para 1 above, the assessment by the reporting officer and the Reviewing officer shall be done for the grooming and betterment of the executive.

64

The entries/ob entries/observat servation ion are required to be constructiv constructivee ,as the case of improvement improvement/Assi /Assistanc stancee Areas in section B(v) ,the qualitative ,aspects of section C and in Training and development  Needs in section D. Similarly, it is expected that the executives will approach and handle his/her self assessment objectively and with a befitting maturity. 2. Review/counseling card is to be prepared for every four month period in duplicate and to be signed by both Appraise and the Reporting Officer. The duplicate (perforated) copy of each Review card to be handed over to the Appraisee. 3. Format “D” TRAINING AND DEVELOPMENT NEEDS to be prepared in triplicate –one to remain with EER and two copies to be sent to the Functional Head at Corporate Head Office. The functional functional head after recording recording his recommendat recommendation ion shall send one copy to GM (HRD) for  arranging training.

FILLING OF THE FORM ILLUSTRATIVE EXAMPLES Some examples of entries to help the Appraisee and Appraisers to fill the PAR form indicated are indicated below:

65

Constraints:  Non –availability of equipment.

: Inadequate delegation power. : Long geographical distance. : Communication net- work is weak. : Office records are inadequate and traceable. : Inadequate laboratory facilities/ support. : Voluminous back –log/untrained staff.

Opportunities: Equipment/P&M new.

: Well trained personnel. : Proximity to industrial city. : Infrastructural support. : Peer group support. : New vistas of challenge. Development: This means new processes, system procedure which are developed and adopted.

Only one item would be more than adequate. For example, reference may be made about new syst system em for for compi compili ling ng accou account ntss on time time,, stan standar dardi diza zati tion on of equip equipme ment nt,, new new syst system em of  maintenance, safety and new mining methods etc : In respect of development of people mention name of one or two subordinates who were motivated to their working may be listed indicating specially the manner in which it was done.

ab out the earnestness with results were achieved, Special Achievements: Mention may be made about for example these could be listed. 66

-preparation of operation manual -Absorption of new technology -Substantial increase in equipment utilization -Staff deployment/retraining -Designing new information system -Substantial equipment re-habilitation - Improvement in quality of coal and sales realization

Special Interest:

Mention may be made of the Appraiser’s professional interest which may be even not related to the job entrusted to him. These could be in respect of writing, reading, cultural activities, sports etc. : In the matter of social managerial dimension has to be made about the contribution of the executives in developing the social organization in the company including contribution to activities outside the company. The Appraiser has to make his observation by indicating G (Good) ,N(Normal),and P(poor).

Special Instructions

In respect of Development needs of an executives reference be made about areas of training which would help the executives to grow further in his career, and these may be indicated in terms of topics in respect of managerial skills and technical skills. Job rotation of the executives as a means of his further development and career growth is indicated.

67

General instructions

In all case where the grading grading are Outstanding Outstanding,, Very good, and E (below average), the Appraise must mention specifically the event to support his views in the column provide for criteria incidents; otherwise it will be considered subjective. Mere achievements of targets or marginal raise over it do not signify outstanding /very good  performance. Remarks like “hard working and honest” also do not merit a grade of “very good or  outstanding”.

FORM – 1V (Annual Appraisal Form for all Non-executive Employees Borne in NCWA Scale of Pay)

Office of the ………………………… …………………………………………………… ……………………………………………………… ………………………………….. …….. Report for year ending…………………………… ending……………………………………………………… ………………………………………………... ……………………... 68

(Strike out column not applicable) 1. Name of Employee ………………………… ……………………………………………………… ………………………………… …… 2. Date of Birth ………………………… ……………………………………………………… ………………………………………… …………… 3. (a)Designation………………… (a)Designation…………………………………………… …………………………………………………… ………………………… (b) Grade …………………………………………………… …………………………………………………………………………… ……………………… (c)Nature of o f Duties ………………………… ……………………………………………………… ……………………………………… ………… 4. Educational Qualification……………… Qualification………………………………………… ………………………………………… ……………… 5. Date of joining the Deptt…………………… Deptt………………………………………………… …………………………………… ……… 6. Preceding Deptt/Section of Posting………………… Posting…………………………………………… …………………………… … 7. Period for which the employee has worked Under the Reporting Officer in the year…………………………………………… year…………………………………………… ASSESSMENT BY THE REPORTING OFFICER 

8. Professional/technical general

“Very Good”

“Good”

“Poor”

Knowledge and application 9. If Supervisor: (a)Capacity to plan, organize and execute (b)Delegating duties to and taking work  From subordinates exercising effective Supervision and control, maintenance Of discipline and leadership 10. Dose he/she rise to occasion?

Yes

No

11. Cost consciousness

yes

No

12. Punctuality and regularity in attendance

Punctual 69

Irregular 

13. Industry and aptitude for work

“Very Good”

“Good”

“Poor”

14. Maintenance of official records

“Very Good”

“Good”

“Poor”

15. Accuracy &Speed

“Very Good”

“Good”

“Poor”

16. Capacity to express 17. Has he been warned for any failure? Or any inadequacy in the year in writing Or orally? If so, give brief details. 18. Relationship with colleagues and

“Very Good”

“Good”

“Poor”

Fellow employee 19. Was any disciplinary action initiated against him during the period under  report and if so, the result thereof? 20. Loyalty and honesty 21. Does his health interfere with his work? 22. Fitness for confirmation/promotion 23. General Remarks, if any 24. Overall Grading

“Outstanding”

“Very Good” “Good”

“Poor”

Signature of Reporting Officer 

Name (in Block Letters) of the Reporting Officer 

70

Dated

Designation REMARKS OF REVIEWING AUTHORITY

“Outstanding”

“Very Good”

“Good”

“Poor”

Signature of Reviewing Officer  Name (in Block Letters) and Designation of the Reviewing Officer 

Rating “Poor” will only be considered as Adverse Entry. In c ase the employee who has been be en rated “Poor” or in case of any Adverse Entry in the above report, the employee should be shown this report and in the token there of his signature be obtained. Signature of the Employee

INFERENCE

Question No. – 1

Out of the respondent so interviewed indicates that 83% of the persons are aware of the method of performance appraisal system applicable to them where as 3% of respondents are not aware of  the method of Performance Appraisal Appraisal and14 % have expressed their ignorance to the Performance Appraisal system prevailing in the company.

71

On the whole it indicates that people peo ple are aware of the Performance Appraisal system applicable to the company.

Question No. – 2

Out of the respondent respondent so interviewed interviewed indicates indicates that 100 % of persons persons are agreed to the need of  Performance Appraisal system in which 67 % are agreed and 33 % are strongly agreed. So it can be concluded that majority of the people agree that there is a need of Performance Appraisal system in the organization.

72

Question No. – 3

Out of the respondents so interviewed indicates that only 5% of people are rated the performance rating system prevailing in the company to excellent and 17% of the respondents are rated to the  prevailin  prevailing g system to very good where as 61% of people rated it good and 17 % considered it average. So we can conclude that majority of the people are satisfied with the existing system of  Performance Appraisal in the company.

73

Question No. – 4

Out of the respondents so interviewed indicates that 91% of the people agree that there is influence of 

Performance Appraisal system over the efficiency & career growth of the workers on which 19% of people strongly agree to it and 9 % of the people disagree with the question. So it can be concluded that majority of people believe that the existing Performance Appraisal system does influence the efficiency & career growth of the workers.

74

Question No. – 5

Out of the the respon responden dents ts so inter intervie viewed wed indica indicates tes that that 50% of person personss have have respon responded ded that that traini training ng imparted to them in past does have an effect on their performance and 28 % of people believe that training imparted to them does not have any effects on their performance where as 22% of respondents do not want to give any comments. So it can be concluded that training imparted to people in past do effects their performance.

75

Question No. – 6

Out of the respondents so interviewed indicates that about 36 % of the respondent indicates that Perfomance Appraisal System bring out real training & development needs and 33 % said it does not bring out real training & development needs where as 31 % do not want to give any comments. Hence it can conclude that Performance Appraisal do bring the real training & development.

76

Question No. – 7

Out of the respondents so interviewed indicates that 4 % of people gets only 1 promotion in their  tenure of service, 25 % of people gets 2 promotions in their tenure, 32 % of people gets 3  promotions in their tenure tenure and only 39 % of people gets gets 4 or more promotions in in their tenure of  service. So it can be concluded that period to remain in a particular post is too long or rather promotion occurs after a long time. Promotion in C.C.L occurs in a fixed interval of period.

77

Question No. – 8

Out of the respondents so interviewed indicates that 2 2 % of the people agrees that there is an alternative way to compensate them if promotion has not been given to them where as 64 % of   people don’t agree to it and 14 % of persons is indifferent to such thing as they gives no comment to it. So we can conclude that the alternative way to compensate the employees if promotion is not  provided to them is very less.

78

Question No. – 9

Out of the respondents so interviewed indicates that 6 7 % of people agree that Performance Appraisal system helps in taking right decision regarding promotion on w hich 11 % are strongly agree while 33 % disagree with the question raised. So we can conclude that Performance Appraisal system do helps in taking right decision regarding promotion.

79

Question No. – 10

Out of the respondents so interviewed indicates, 70 % of people believe that there is a system of  Service Linked Upgradation in the organization and 8 % of people don’t agree to it where as 22 % people gives no comment to it. So we can conclude that there is a system of SLU in the organization which is the way to compensate the people when promotion is not given to them due to some circumstances.

80

Question No. – 11

Out of the respondents so interviewed indicates that 7 0 % of people believe that their  relationship with the superior, peers & subordinates affects the performance and 19 % of people are strongly agree 11 % of the people are disagree with such a relationship on which 3 % are strongly disagree So we can conclude that the relationship of people with their superiors, peers & subordinates do effect their performance.

81

Question No. – 12

Out of the respondents so interviewed indicates that 7 8 % of respondents agree that discussion d iscussion of  the tasks do take place with their superior and 8 % of people does not agree to it where as 14% of   peopledo not want to give any comments. So we can conclude that discussion of the task takes place to the people by their seniors.

82

Question No. – 13

Out of the respondents so interviewed indicates that o nly 42 % of people agree that performance imbalance is communicated to them satisfactorily and 36 % of respondents does not agree to it where as 22 % of people do not want to give aany comments. So we can conclude that performance imbalance is communicated to the employees satisfactorily

83

Question No. – 14

Out of the respondents so interviewed indicates that 4 2 % of respondents strongly agreed that  promotion provide motivation to the employee and 33 % of people only agreed to it where as 25 % of respondents disagreed to it. So we can conclude that promotion provide motivation to employees in C.C.L.

84

Question No. – 15

Out of the respondents so interviewed indicates that 70 % of people wants to have an open  performance appraisal system in the organization and 30 % of people as 22% of people are indifferent so they gives no comment. So we can conclude that employee wants to have an open appraisal system in the organization in spite of the prevailing system in the organization.

85

Question No. – 16

Out of the respondents so interviewed indicates that 5 % of the people said that time fixed for  Performance Appraisal is 3 months and 6 % o f the perople said it is 4 months and a nd 17 % of them said it is 6 months where as 72 % of the people said it is 12 months. So we can conclude that majority of the people said that time fixed for Performance Appraisal is 12 months.

86

Question No. – 17

Out of the respondents so interviewed indicates that 3 9 % of the respondent agree ag ree that the current Performance Appraisal System is transparent and 22 % said it is not transparent whereas 3 9 % do not want to give any comments So it can be concluded that the current Performance Appraisal System in C.C.L is not transparent

87

Question No. – 18

Out of the respondents so interviewed indicates that 3 9 % of the respondent agree ag ree that present Performance Appraisal System rates their efficiency effectively and 28 % said they do not agree that Performance Appraisal System rates their efficiency effectively where as 33 % do not wan t to give any comments. So it may be concluded that the present Performance Appraisal System rates their efficiency effectively.

88

Question No. – 19

Out of the respondents so interviewed indicates that 5 5 % of the respondent agree ag ree that the quantity of work work gets reflected reflected in their Performance Appraisal and 28 % said said it is not reflected where as 17 % do not want to give any comments in the matter. So it can be calculated that quantity of work get reflected in their Performance Appraisal. 89

Question No. – 20

Out of the respondents so interviewed indicates that 6 1 % of the respondent agree ag ree that Performance Appraisal System dependent upon quality of work and 14 % said it is

not dependent upon quality of work where as 25 % expressed their ignorance. So it can conclude that majority of the respondent agree that Performance Appraisal System dependent upon quality of work 90

FINDINGS

India is a third largest country in the production of coal. Coal India Limited is the main source in the production of coal. Coal India limited is the second greatest employer after Railway. C.C.L, having a vast repot ire of human resource, follow a well defined d efined metrices to appraise  performance for both executive & non executive.

91

With the help of interview and discussion d iscussion and on the basis of instrument of defined questionnaire I found that the member of the C.C.L is aware of the method method of Performance Appraisal and they feel the need of this system in the Organization. Performanc Performancee Appraisal in the company company is being at a regular regular interval interval of one year (12 months). months). They feel that the system has its influence over the efficiency & career growth of the workers Performance Appraisal of individual employee is sought for by the NEE department only when the promotion of the concerned employee is under consideration. Otherwise the Performance Appraisal of the worker concerned is kept with the HOD of the department where the worker is  posted. Research reveals that there is general awareness regarding the Performance Appraisal process in the organization. The Performance Appraisal in the company is probably a confidential one where there is no intera interacti ction on of the superi superior or with with the subord subordina inate te at the time time of assess assessmen mentt of perfor performan mance. ce. However instances have been seen that the Performance Appraisal is made in front of the worker   but even then the strength and weaknesses of the worker has not been conveyed to him. The study of “Performance Appraisal system” at C.C.L. has given me an opportunity to have closer look at the different imperatives of the appraisal system as an important domain of HR  delivery. After studying the different factors that affects variably the performance, I would like to give certain suggestions herewith, which further can be added on the agenda of HR initiatives at C.C.L.

SUGGESTION

1. Feat Featur ures es and tools tools of Perf Perfor orma manc ncee Appr Apprai aisa sall syst system em shou should ld be chang changed ed so that that the the subjec subjecti tivit vity y is reduce reduced d and an indivi individua duall bias bias that that may impact impact the effect effective ivenes nesss of   performance management system is inactivated. 2. System System should should be redesigned redesigned for objectivi objectivity, ty, transparen transparency cy and consistency consistency across across C.C.L. C.C.L.

92

3. Management Management by objective objectivess (MBO) should should also also be applied. applied. It is the the modern and and advanced method of appraisal. MBO is potentially a powerful philosophy of managing and an effective way for operationalizing the evaluator process. It seeks to minimize external controls and maximize internal motivation through goal setting between the superior and subordinates and increases the subordinate control over their own work. 4. The The self self apprai appraisa sall form form should should have open-e open-end nded ed appro approach ach to get get the the true true pict pictur uree of  individual’s competence level (strength and weakness). The employee should not hesitate in giving their weakness. 5. The The proc proces esss of 360360-de degr gree ee appr apprai aisa sall shou should ld be appl applie ied d to make make the the syst system em more more transparent. 6. The review review should should be done quarterly quarterly and specif specificall ically y focused focused on feedback feedback and coaching coaching and hence should require the appraisee and the appraiser to have formal feedback session. This will further help the appraiser in both obtaining information and providing inputs on how an appraisee is performing and whether or not he /she is headed in the right direction. It will be an opportunity for the appraisee to get resources and help that may be required for enhancing his/her own performance. 7. Personal Personal interview interview can be introduce introduced d in Performance Performance Appraisal Appraisal system system for promoti promotion on in C.C.L. 8. Apart from from assigned assigned jobs jobs which are are very difficul difficultt to quantify, quantify, a system system needs needs to be involved which is imperative.

Conclusion

The study on Performance Appraisal at CCL has given me opportunity to have a closer look at the imperatives of the performance Appraisal System as a domain of HR delivery.

93

It has enhanced enhanced my knowledge knowledge as how an organi organizat zation ion work and operates operates to perfor perform m its operations effectively and efficiently. The project has not only helped me to have close insight into the practical implication of business process but also the performance appraisal is done. While going through the different process followed at CCL within performance Appraisal, I came came to know know of the the impo import rtan ance ce of perfo perform rman ance ce appr apprai aisa sal. l. This This oppor opportu tuni nity ty to work work as researcher has helped me understanding the theoretical and practical aspects of management. The summer project, also made me realize the importance of HR as a fascinating function in an organization. I got to know of the importance of communication and interpersonal skill in getting things done from others. In a nut shell, it was great learning for me as management student. With the help of personal interview and discussion with the employee and on the basis of  instrument of defined questionnaire I reached on the following conclusion. 1. According According to respond respond given given against against the questio question n no. 1, 2, 3, it it can conclude conclude that majority majority of the respondent are know about the Performance Appraisal System and they feel its need in the organization, they rated it good. It means that Performance Appraisal System is satisfactory in the organization.

2. According According to respond respond given given against against the the question question no. 4, 5, 6, 6, 9 and 14 it it can conclude conclude that that Performance Appraisal System affected the workers in many respect. They affect the efficiency & career growth of the workers. It brings out training 7 development needs of  the workers. It means it provide motivation to workers and helps in taking the right decision. 3. According According to respond respond given given against against the questio question n no. 11,12,13,15 11,12,13,15 and 17, 17, the relation relationship ship of the workers with superior, peers and subordinate is good. Any task assigned to workers is comm commun unic icat ated ed to them them.. Thus Thus it can can be conc conclu lude ded d that that open open and and tran transp spar aren entt Performance Appraisal System is prevailing in the organization and their relationship is satisfactorily. 4. Accord According ing to respond respond given given agains againstt the questi question on no.7, 8 and 10, it can conclude conclude that that majority of the respondent get promotion in their service period. If they do not get any  promotion, they are compensated by other means like SLU/SLI. It means ,workers are satisfied with the Performance Appraisal System in the organization. 94

5.

Annual Perfor Performance mance Apprais Appraisal al System System is prevaili prevailing ng in the organizat organization ion

6. Accord According ing to respond respond given given against against the questio question n no.18,19 no.18,19 and 20, it can be conclud concluded ed that that Perfor Performan mance ce Apprai Appraisal sal Syste System m depende dependent nt upon quantit quantity y and qualit quality y of work.I work.Itt means it rate the efficiency of the workers effectively.

Questionnaire For Study On PERFORMANCE APPRAISAL SYSTEM

AT 95

CENTRAL COALFIELDS LIMITED

DARBHANGA HOUSE, RANCHI (HEAD QUARTER)

Submitted By:Kirti Priya Anand Roll No. –  (Master in Personnel Management) 2008 -09

  NEVILLE WADIA INSTITUTE OF MANAGEMENT STUDIES & RESEARCH PUNE UNIVERSITY , PUNE

Questionnaire

All the information will be kept confidential.

Personal Data 1. Depart Departmen ment: t: ……………… ……………………… ……………… ……………… ……………… ………….. ….. 2.

Design Designati ation: on: …………… …………………… ……………… ……………… ……………… …………… ……..

3. Grade: Grade: …………… …………………… ……………… ……………… ……………… ……………… …………… …… 96

4. Tenure of service service in company: company: …………………… ……………………………… ………….. .. 5. Tenure of grade in present present position: position: …………………… ………………………….. …….. 6. Gender: Gender: …………… …………………… ……………… ……………… …………… …………… ……………. ……... 7. Age: ……………… ……………………… ……………… ……………… ……………… …………… …………… ………

1. Are you aware of method which is followed for your Performance Appraisal in this organization? a)Yes 2.

b)No

c)Do not know

Do you agree to the need of Performance Performance Appraisal system in any organization? a)Strongly Agree

b)Agree

c)Disagree

d)Srongly Disagree

3. How do you rate the Performance rating rating system prevailing in C.C.L? a)Excellent 4.

b)Very Good

c)good

d)Average

Does performance performance appraisal system has its its influence over the efficiency & career growth of  workers? a)Strongly Agree

5.

b)Agree

c)Disagree

d)Strongly Disagree

Does training training imparted to you you in the past has effect on your performance? a)yes

b)No

c)No Comment

6. Does the current system of Performance Appraisal bring out the real training & development needs? a)yes

7.

b)No

c)No Comment

How many promotion do you get in your your tenure of service service in this organization? a)1

b)2

c)3

d)4

8. Is there any way to compensate you if promotion promotion has not been given to you? a)Yes

b)No

c)No comment

9. Does performance Appraisal system system helps in taking the right decision regarding the  promotion? a)Strongly Agree

b)Agree

c)Disagree 97

d)Strongly Disagree

10. Whether there is a system of SLU(service SLU(service linked upgradation)/SLI(service upgradation)/SLI(service linked increment)? a)yes

b)No

c)No comment

11. Does your relationship relationship with superior, peers and subordinates subordinates affect your performance? performance? a) Strongly Agree

b)Agree

c)Disagree

d)Strongly Disagree

12. Do discussion on the task task assigned to you take place with with your superior? a)Yes

b)No

c)No comment

13. Whether performance imbalance imbalance communicated to you satisfactorily? a)Yes

b)No

c)No comment

14. Do you agree that that promotion provide motivation to you? you? a)Strongly Agree

b)Agree

c)Disagree

d)Strongly Disagree

15. Do you want open Performance Performance Appraisal System in in place of the present prevailing prevailing system? a)Yes

b)No

c)No comment

16. What is the time time fixed for your Performance Performance Appraisal? a)3 months

b)4 months

c)6 months

d)12 months

17. Is current Performance Appraisal System is transparent? a) Yes

b)No

c)No comment

18. Is the present Performance Performance Appraisal System System rates your efficiency efficiency effectively? a)Yes

b)No

c)No comment

19. Does quantity of work gets reflected in your Performance Appraisal? a)Yes

b)No

c)No comment

20. Is the Performance Appraisal Appraisal System dependent upon quality of work? a)Yes

b)No

c)No comment

21. Any suggestion for the improvement of appraisal system system at CCL ? Please prioritize them in order? a)…………………………………………………………………………………………. b)………………………………………………………………………………………… c)…………………………………………………………………………………………. 98

BIBLIOGRAPHY

•

Armstrong, M (1991) A Handbook of personnel management practice, fourth edition, London, Kogon

•

Aswathapa, K. (2008) human Resource Management, fifth edition, new Delhi, Tata McGraw-Hill publishing co.ltd.,

•

Haynes, E. Marion, (1992) Managing Performance, New Delhi, Galgotia Publications(p) ltd.

•

Jain C.Sugan (2002) Performance Appraisal, Jaipur, Raj Publishing House 99

•

http://WWW.Performance_appraisal.com

•

http://en.wikipedia.org/wiki/performance_appraisal

•

http://www.business-marketing.com/store/appraisals.html

•

http://www.businessballs.com/performanceappraisals.html

100