DISSERTATION REPORT

ON

“A STUDY OF PERFORMANCE APPRAISAL”

AT
“BHEL”

Submitted in partial fulfillment of the requirement for award of the

degree of

MASTER OF BUSINESS ADMINISTRATION

2013-2015

(UTTARAKHAND TECHNICAL UNIVERSITY, DEHRADUN)

ROORKEE COLLEGE OF MANAGEMENT & COMPUTER

APPLICATION, ROORKEE

Submitted To: Submitted By:

Mrs. ALKA CHAUDHARY SHALINI SINGH
Professor (RCMCA) MBA (4th SEM)
 ACKNOWLEDGEMENT

I am indebted to Mr. Girish, the Human Resource Manager of BHEL, for

giving me an opportunity to do survey in this esteemed organization. His
knowledge & experience was a great motivating factor. This effort would
not have been possible without his able, efficient, valuable and timely
advice, insights and thoughts. I am very much thankful to sir his valuable
guidance and support.

I take this opportunity to express my heartfelt gratitude to my faculty

guide Mrs. Alka Choudhary, faculty. I am thankful to mam for her
valuable support and guidance throughout the project.

I am equally grateful to each and every member of BHEL limited for their
whole-hearted cooperation in completing this project in stipulated time.

I extend my sincere thanks to all distributers, wholesalers who helped me

for my project.

Last but not the least, I would like to thank my family members and friends
whose unbounded support facilitated the successful completion of the
project.
 DECLARATION

I, Shalini Singh student of MBA 4th Sem from RCMCA, Roorkee declare that
all the information, facts & figure represented in this report are actual and
collected by me in my dissertation report “PERFORMANCE APPRAISAL OF
BHEL” with special reference to “BHEL Haridwar UNIT”.

(SHALINI SINGH)
 PREFACE
The professional training is the internal part of an M.B.A. program. It helps
the Students to understand practical aspects of Business Management in a
better way as a part of my MBA program at “Institute of Management
Studies” I was supposed to work with the organization.

“Marketing Research is the systematic and objective identification,

collection, analysis, dissemination , and use of information for the
purpose of improving decision making related to identification and
solution of problems and opportunity” .

Perception is the process, by which an individual selects, organizes and

interprets information inputs to create a meaningful picture of the world
around . To be a Master of Business Administration student is a matter of
pride because we are in a field, which helps us to develop from a normal
human being into a disciplined, and dedicated professional. One has to be
a good learner to sharper knowledge in the particular field to achieve and
attain the desired goals and heights. I conducted to gain an understanding
of what goes in to mind of the employers about “PERFORMANCE
APPRAISAL”. I used research questionnaires as the research and data
collection tools. The responses were collected from 50 respondents from
various areas.
CONTENTS

1. Introduction ----------------------------------------------------------------------------1
1.1 Introduction of the topic ---------------------------------------------------------2
1.2 Purpose of study-------------------------------------------------------------------3
1.3 Methods----------------------------------------------------------------------------- 9
2. Introduction of Company
2.1 Production facilities--------------------------------------------------------------17
2.2Company Profile---------------------------------------------------------------------19
2.4Mission of Company-----------------------------------------------------------------22
2.4Objective of the study

3. Research Methodology

3.1 Research Size ---------------------------------------------------------------------34

3.2 Data Collection -------------------------------------------------------------------35

3.3 Scope of the study ------------------------------------------------------------------46

4. Data analysis ----------------------------------------------------------------------------53

5. Findings and the recommendations from the project ------------------------- 57
6. Conclusion -------------------------------------------------------------------------------61
7. Bibliography -----------------------------------------------------------------------------63
8. Annexure ---------------------------------------------------------------------------------68
 CHAPTER 1

INTRODUCTION
1.1 INTRODUCTION OF THE TOPIC

PERFORMANCE APPRAISAL

Performance Appraisal is the systematic evaluation of the

performance of employees and to understand the abilities of a person for
further growth and development.

Performance appraisal is generally done in systematic ways

which are as follows:

 The supervisors measure the pay of employees and compare it with

targets and plans.
 The supervisor analyses the factors behind work performances of
employees.
 The employers are in position to guide the employees for a better
performance.
According to Flippo, a prominent personality in the field of Human
resources,” Performance appraisal is the systematic, periodic and an
impartial rating of an employee’s excellence in the matters pertaining to
his present job and his potential for a better job."

Performance appraisal is a systematic way of reviewing and assessing the

performance of an employee during a given period of time and planning for
his future.
It is a powerful tool to calibrate, refine and reward the performance of the
employee. It helps to analyze his achievements and evaluate his
contribution towards the achievements of the overall organizational goals.

By focusing the attention on performance, performance appraisal goes to

the heart ofpersonnel management and reflects the management's
interest in the progress of the employees.

PURPOSE OF PERFORMANCE APPRAISAL

 Increment in salary, promotion, transfer, layoff, termination.

 Training and development needs.

 Providing feedback on performance.

 Basis for research and reference for personnel decision in future

METHODS OF PERFORMANCE APPRAISAL

1. Ranking Methods:
Ranking method is the oldest and simplest method of rating the employees.
Here, all the employees who are doing the same job are compared with
each other. Then, each employee is given a particular rank, i.e. First Rank,
Second Rank, etc. The best employee is given the first rank, and the worst
employee is given the last rank.

There are three ranking methods. VizSimple Ranking Method, Alternation

Ranking Method, and Paired Comparison

Ranking method can be done very quickly and conveniently.

2. Graphic Rating Scale Method:

Graphic rating scale method is one of the oldest and widely used methods
of performance appraisal. Here a graphic scale is used to rate the employee.
Factors such as quality of work, quantity of work, dependability, etc. are
rated.

A simple graphic rating scale is shown in the sample table below.

Graphic rating scale method is easy to understand and simple to use. It also
consumes less time. However, it involves a lot of paper work and there are
chances of bias by the rater.
3. Confidential Reports:

This is an old and traditional method of rating the employees. A

confidential report is a report about the employee. It is prepared by his
immediate superior. It contains information about the employee's
strengths, weaknesses, major failure and achievements. It also contains
information about the employee's personality traits (qualities) and about
his behavior. Confidential report is used to take decisions about transfers,
promotions, etc.

4. Checklist Method:

First a checklist is prepared. It contains some statements about the

employees’ behavior on the job.

For e.g. check the following sample of a simple checklist.

The rater has to tick mark "Yes" or "No" for each statement. The rater must
have full knowledge about the employee's behavior on the job.

The main advantages of checklist method are:-

 It is simple,
 It is convenient,
 It takes less time, and
 It is very economical.

The main disadvantage of checklist method is that the statements are

structured, and it does not have depth like the Critical Incident Method and
the Essay Method.
5. Critical Incident Method
Here, the supervisor writes a brief report about any incident, which affects
the performance of the job. The incident may be positive or negative. For
e.g. A salesman is very patient with a difficult customer, and he succeeds in
selling the goods to that customer. This is a critical incident. The supervisor
writes a brief report about this incident. This report is in favour of the
salesman. So the salesmen will get a high rating. This method has some
disadvantages, as some supervisors only record negative incidents. They do
not record positive incidents. Some supervisors are also biased while
recording the incidents.

6. Narrative Essay:
Narrative Essay is the simplest method of rating an employee. Here, the
rater writes in detail, the employee's strengths, weaknesses and potential.
He also gives suggestions for improvement. If the essays are written well
then they can be used to improve the performance of the employees. This
method is better than other complex methods.
MODERN METHOD OF PERFORMANCE APPRAISAL

1. ASSESSMENT CENTRES
An assessment centre typically involves the use of methods like
social/informal events, tests and exercises, assignments being given to a
group of employees to assess their competencies to take higher
responsibilities in the future. Generally, employees are given an assignment
similar to the job they would be expected to perform if promoted. The
trained evaluators observe and evaluate employees as they perform the
assigned jobs and are evaluated on job related characteristics.

The major competencies that are judged in assessment centers are

interpersonal skills, intellectual capability, planning and organizing
capabilities, motivation, career orientation etc. assessment centers are also
an effective way to determine the training and development needs of the
targeted employees.

2. BEHAVIORALLY ANCHORED RATING SCALES

Behaviorally Anchored Rating Scales (BARS) is a relatively new technique
which combines the graphic rating scale and critical incidents method. It
consists of predetermined critical areas of job performance or sets of
behavioral statements describing important job performance qualities as
good or bad (for eg. the qualities like inter personal relationships,
adaptability and reliability, job knowledge etc. These statements are
developed from critical incidents.

In this method, an employee’s actual job behaviour is judged against the

desired behaviour by recording and comparing the behaviour with BARS.
Developing and practicing BARS requires expert knowledge.
3. HUMAN RESOURCE ACCOUNTING METHOD
Human resources are valuable assets for every organization. Human
resource accounting method tries to find the relative worth of these assets
in the terms of money. In this method the Performance appraisal of the
employees is judged in terms of cost and contribution of the employees.
The cost of employees include all the expenses incurred on them like their
compensation, recruitment and selection costs, induction and training costs
etc. whereas their contribution includes the total value added (in monetary
terms). The difference between the cost and the contribution will be the
performance of the employees. Ideally, the contribution of the employees
should be greater than the cost incurred on them.

4. 360-DEGREE-PERFORMANCE-APPRAISAL METHOD
360 degree feedback, also known as 'multi-rater feedback', is the most
comprehensive appraisal where the feedback about the employees’
performance comes from all the sources that come in contact with the
employee on his job.

360 degree respondents for an employee can be his/her peers, managers

(i.e. superior), subordinates, team members, customers, suppliers/ vendors
-anyone who comes into contact with the employee and can provide
valuable insights and information or feedback regarding the "on-the-job"
performance of the employee.

360 degree appraisal has four integral components:

1. Self-appraisal

2. Superior’s appraisal

3. Subordinate’s appraisal

4. Peer appraisal.
 SUPERIOR

SELF EMPLOYEE PEER

SUBORDINATE

Four Integral Components of 360 Degree Appraisal

Self-appraisal gives a chance to the employee to look at his/her strengths
and weaknesses, his achievements, and judge his own performance.
Superior’s appraisal forms the traditional part of the 360 degree
performance appraisal where the employees’ responsibilities and actual
performance is rated by the superior.

Subordinates appraisal gives a chance to judge the employee on the

parameters like communication and motivating abilities, superior’s ability
to delegate the work, leadership qualities etc. Also known as internal
customers, the correct feedback given by peers can help to find employees’
abilities to work in a team, co-operation and sensitivity towards others.

Self-assessment is an indispensable part of 360 degree appraisals and

therefore 360 degree Performance appraisal have high employee
involvement and also have the strongest impact on behavior and
performance. It provides a "360-degree review" of the employees’
performance and is considered to be one of the most credible performance
appraisal methods.

360 degree performance appraisal is also a powerful developmental tool

because when conducted at regular intervals (say yearly) it helps to keep a
track of the changes others’ perceptions about the employees. A 360 degree
appraisal is generally found more suitable for the managers as it helps to
assess their leadership and managing styles. This technique is being
effectively used across the globe for performance appraisals. Some of the
organizations following it are Wipro, Infosys, and Reliance Industries etc.
5. MANAGEMENT BY OBJECTIVES (MBO) METHOD
The concept of ‘Management by Objectives’ (MBO) was first given by Peter
Drucker in 1954. It can be defined as a process whereby the employees and
the superiors come together to identify common goals, the employees set
their goals to be achieved, the standards to be taken as the criteria for
measurement of their performance and contribution and deciding the
course of action to be followed.

The essence of MBO is participative goal setting, choosing course of actions

and decision making. An important part of the MBO is the measurement
and the comparison of the employee’s actual performance with the
standards set. Ideally, when employees themselves have been involved
with the goal setting and the choosing the course of action to be followed
by them, they are more likely to fulfill their responsibilities.
 CHAPTER 2.
INTRODUCTION
OF
COMPANY
COMPANY PROFILE

Background & Management

Values, Mission & Objective

BHEL’s product profile

Shareholding pattern
 BHEL: A CORPORATE GIANT
Established in the late 50's BHARAT HEAVY ELECTRICALS LIMITED
(BHEL) is a name which is recognized across the industrial world. It is one
of the largest engineering and manufacturing enterprises in INDIA and is
one of the leading international companies in the power field. BHEL offers a
wide spectrum of products and services for core sectors like power
transmission, industrial transportation, oil and gas, telecommunication etc.
Besides supply of non-conventional energy systems. It has also embarked
into other areas including defense and civil aviation. A dynamic 63000
strong team embodies the BHEL philosophy excellence through continuous
striving for state of the art technology. With corporate headquarters in
NEW DELHI, fourteen manufacturing units, a wide spread regional services
network and projects sites all over India and even abroad, BHEL is India's
industrial ambassador to the world with export presence in more than 50
countries.

B.H.E.L.'s range of services extent from project feasibility studies to after

sales services, successfully meeting diverse needs through turnkey
capability.

BHEL has had a consistent track record of growth, performance and

profitability. The World Bank in its report on the Indian Public Sectors, has
described BHEL as “one of the most efficient enterprises in the industrial
sector, at par with international standards of efficiency". BHEL has
acquired ISO 9001 certificate for most of its operations and has taken up
Total Quality Management (TQM).
All the major units/divisions of BHEL have been upgraded to the latest
ISO-9001: 2000 version quality standard certification for quality
management. All the major units/divisions of BHEL have been awarded
ISO-14001 certification for environmental management systems and
OHSAS-18001 certification for occupational health and safety management
systems.

BHEL occupies an all-important niche as evident by its ranking by CII

amongst top eight PSUs based on financial performance. Recently in survey
conducted by business India, BHEL has been rated as seventh Best
Employer in India.
International Business:-

BHEL has, over the years, established its references in over 60 countries of
the world. These references encompass almost the entire range of BHEL
products and services, covering Thermal, Hydro and Gas based turnkey
power projects, substation projects, and rehabilitation projects; besides a
wide variety of products like: Transformers, Compressors, Valves and Oil
field equipment, Electrostatic Precipitators, Insulators, Heat Exchangers,
Switchgears, Castings and Forgings etc.

Some of the major successes achieved by BHEL have been in Gas-based

power projects in Oman, Libya, Malaysia, Saudi Arabia, Iraq, Bangladesh,
Sri Lanka, China, Kazakhstan; Thermal Power Projects in Cyprus, Malta,
Libya, Egypt, Indonesia, Thailand, Malaysia; Hydro power plants in New
Zealand, Malaysia, Azerbaijan, Bhutan, Nepal, Taiwan and Substation
projects & equipment in various countries. Execution of these overseas
projects has also provided BHEL the experience of working with world-
renowned Consulting Organizations and Inspection Agencies.
The Company has been successful in meeting demanding requirements
International markets, in terms of complexity of the works as well as
technological, quality and other requirements viz. HSE requirement,
financing package, associated O&M services to name a few. BHEL has
proved its capability to undertake projects on fast-track basis. BHEL has
also established its versatility to

successfully meet the other varying needs of various sectors, be it captive

power, utility power generation or for the oil flexibility to exhibited
adaptability by manufacturing and supplying intermediate products.
Values:
 Strike adherence to commitments
 Foster learning, creativity and team work.
 Ensure speed of response
 Respect for dignity and potential for individual
 Loyalty and pride in the company
 Zeal to excel and zest for change
 Integrity and fairness in all matters
 Most of them have been rephrased.
 "Zest for change" has been added as change has been integral with
success and the rate at which change is needed is very high compared to
earlier period.
OBJECTIVES

GROWTH
To ensure a steady growth by enhancing the competitive edge of BHEL in
existing businesses, new areas and international operations.

PROFITABILITY

To provide a reasonable & adequate return on capital employed, primarily

through improvement in operational efficiency, capacity utilization &
productivity and generate adequate internal resources to finance the
company’s growth

CUSTOMER FOCUS

To build a high degree of customer confidence by providing increased value

for his money through internationals standards of products quality,
performance and superior customer services

PEOPLE ORIENTATION

To enable each employee to achieve his potential, improve his capabilities,

perceive his role & responsibilities and participate & contribute positively
to the growth and success of the Company. To invest in human resources
continuously and be alive to their needs
IMAGE

To fulfill the expectations which stakeholders like government as owner,

employees and the country at large have from BHEL.

BHEL PRODUCT PROFILE

1. Power Generation
Power Generation Sector comprises thermal, hydro and nuclear power
plant business. As of 31.3.2006.BHEL supplied sets account for 76741 MV
in the country, as against nil till 1969-70.

Custom- made hydro sets of Francis, Pelton and Kalpan for different head-
discharge combinations are also engineered and manufactured by BHEL

In all, orders for more than 880 utility sets of thermal, hydro, gas and
nuclear have been placed on the company as on date. The power plant
equipment manufactured by BHEL is based on contemporary technology
comparable with the best in the world, and is also internationally
competitive

2. Industries

BHEL manufactures and supplies major capital equipment and system like
captive power plant, centrifugal compressor, drive turbines, industrial
boilers and auxiliaries etc. BHEL has also emerged as a major supplier of
controls and instrumentation systems, especially distributed digital control
systems for various power plants and industries.

3. Transportation

Most of the trains on Indian Railways, whether electric or diesel powered

are equipped with BHEL’s traction propulsion system and controls. India’s
first underground metro at Kolkata runs on drives and controls supplied by
BHEL. Almost all the EMUs in service are with electrics manufactured and
supplied by BHEL. BHEL has also diversified into the area of track
maintenance machines for Indian Railways.

4. Renewable Energy

BHEL has been manufacturing and supplying a range of Renewable Energy

systems and products. It includes Solar Energy systems namely, PV
modules, PV power plants, solar lanterns, solar pumps etc.

5. Oil and Gas

BHEL is supplying onshore drilling rigs’ equipment viz. draw works, rotary
table, traveling block, swivel, mast and sub structure, mud systems and rig
electrics and X’mas tree valves

6. Transmission

BHEL supplies a wide range of products and systems for transmission and
distribution application. The products manufactured by BHEL include
power transformers, instrument transformers, dry type transformers etc.
ACTIVITY PROFILE

Power Generation and Transmission

 Steam Turbines-Generator sets and Auxiliaries
 Boilers and Boilers Auxiliaries
 Nuclear Power Generation Equipments
 Hydro Turbines-Generator Sets & Auxiliaries
 Gas Turbines-Generator Sets
 Heat Exchangers
 Condensers
 Bag Filters
 Valves
 Pumps
 Electrical Machines
 Power, Distribution and Instrument Transformers
 Reactors
 Porcelain

Industries/Transportation/Oil & Gas /Renewable Energy

 Steam Turbine-Generators Sets

 Gas Turbine-generators Sets
 Diesel Engine-Based Generators
 Drives Turbines
 Marine Turbines
 Industrial Heat Exchangers
 Industrial Valves
 Industrial Fans
 Capacitors
 Broad Gauge AC, AC/DC Locomotives
 Diesel-Electric Shunting Locomotives
 Traction Motors & Control Equipment
 Electric Trolley Buses
  Battery operated Passenger Vans

Systems and Services

 Turnkey Utility Power Station/EPC contracts

 Captive Power Plant
 Consultancy Services
 Construction Services
 Software packages for Utilities

BHEL IN INDIA

Power Sector
REGIONAL OFFICES (POWER SECTOR):
1. NEW DELHI (NORTHERN REGION)
2. CALCUTTA(EASTHREN REGION)
3. NAGPUR (WESTHREN REGION)
4. MADRAS (SOUTHREN REGION)

Industry Sector

MANUFACTURING UNITS:-
1. BANGALORE
2. BHOPAL
3. HARIDWAR
4. HYDRABAD
5. JHANSI
6. RANIPET
7. RUDRAPUR
8. TIRUCHIRAPALLI

MAJOR COMPETITORS OF BHEL

1. ELECTRO CONSULT ITALY

2. ABB SWITZERLAND
3. BEEHTEL USA
4. BLOCK & NEATCH USA
5. GENERAL ELECTRIC USA
6. RAYTHEON USA
7. WESTINGHOUSE USA
8. CNMI & EC CHINA
9. SANGHAI ELECTRIC CO UK
10.GEC-ALSTHOM UK
 CONTRIBUTION TO POWER SECTOR

 Today the power sector plays a very important role in building any
Nation.
 It helps the country to develop its economy and the life style of society.
 BHEL contributes 79% of the national power generation. In which 44%
contribution is made only by BHEL Hardwar, 35% contribution is made
by BHEL other than Hardwar unit and rest 21 % contribution made by
other companies.

TOTAL QUALITY FOCUS:

To face the increased competition from MNCs (due to liberalization policy of

Government) in early 90’s and to enter European market we moved towards
ISO 9000 Certification. Concept of Business Excellence through EFQM Model
was launched in entire BHEL on pilot scale in Oct.”1995” In 1997 HEEP
launched TQM in the entire Plant and since then Self-Assessment is done
every year in September. Based on feedback Report of Assessment, critical
success factors are identified. and TQ action plans are drawn. The philosophy
of ISO 9001, TQM and ISO 14001 has been integrated BHEL Hardwar for
ultimately achieving “BUSINESS EXCELLENCE”. HEEP Hardwar plant is
accredited for ISO 9001 and ISO 14001 and is now on March towards TQM.5-
S was launched in March 1999 in a big way and now it has become a way of
life in the organisation. In 2000 HEEP applied for CII-EXIM Business
excellence award and site visit was conducted Bu CII team in Sept.”2000.Cii
feedback has gone a log way in carrying out further improvement plans and
giving a structured thrust to TQM movement

In July 2001, Unit’s TQ Council reviewed the TQ Action Plans 2001-02 for its
effectiveness and impact on accelerating the pace of improvement and
consequent TQ Score. Executive Director laid the challenge of achieving the
TQ score of 650.With an objective to bring awareness about the CII-EXIM
Business Excellence Model amongst the Sr. Executives, the first ‘Top
Management TQM Workshop’s held at Rishikesh during oct.2001Executive
Director who is TQ Assessor also, himself steered the Workshop with
assistance from some experienced TQ Assessor of HEEP. It followed by
second Top Management TQM Workshop steered again by Ed was held at
HRDC on Oct’29,2001.Subsequantly the third Top Management TQM
Workshop was held in Nov’2001,where-in Sr. Counselor, CII deliberate the
detail on Best practices of TATA STEEL-the winner of ‘CII-EXIM Business
Excellence Award 2000’.Simultaneously ,TQ Assessors training program for
the select group of young managers(to be developed as Think Tanks)was
organized in Nov’2001.To give further boost Apex Group was formed. Apex
Group developed “Roadmap to Business Excellence” based on Criteria
Linkage of CII-EXIM Business Model and the initiatives taken at Hardwar was
drawn by the group and it was widely circulated amongst the employees
through special issue of Hardwar Current in April 2002.It followed by JBE
workshop of Apex TQM Group held at Tehri on June 30 and July 1, 02 where-
in following business policy and critical factors was evolved.

BUSINESS POLICY:
“In-line with Company’s Vision, Mission and values, we dedicate
ourselves to sustained growth with increasing positive Economic Value
Addition and Customer focused business leadership in the Power and
Industry Sector.

BHEL AT HARIDWAR

HEAVY ELECTRICAL EQUIPMENT PLANT, HARIDWAR:

Heavy Electrical Equipment Plant, Hardwar of this Multi-unit corporation

with its 7467 strong highly skilled technicians, engineers, specialists and
professional experts is the symbol of Indo Soviet and Indo German
Collaboration. It is one of the four major manufacturing units of the BHEL.
With turnover of 1088 Crores and PBT of Rs.68 Crores, HEEP added 3000
MW of power to the National grid during 2001-02. HEEP is engaged in the
manufacture of Thermal and Nuclear Sets up to 1000MW, Hydro Sets up to
HT Runner dia 6300mm, associated Apparatus Control gears, AC& DC
Electrical machines and large size Gas Turbine of 60-200 MW. HEEP
Hardwar contributes about 44% of India’s total installed capacity for
power generation with total capacity of Thermal, Nuclear & Hydro Sets of
over 45000MW currently working at a Plant Load Factor of 76% and
Operational Availability of 86%. Inspite of acute recession in economy,
BHEL Hardwar bagged recent orders worth 1500 Crores including repeat
orders for Suratgarh-5, Kota-6, Raichur-7, Rihand-3&4 and Ramagundam-7
Unit. Additionally, Mejia-4, Panipat-7&8, Maithon and Bhatinda are in
pipeline.

CENTRAL FOUNDRY FORGE PLANT (CFFP) HARIDWAR

The Central Foundry Forge Plant was set up at Hardwar with French
collaboration. The construction started in 1974 and production was
commenced in 1976.This plant has in-built high degree of sophistication
normally associated with much larger plants and has successfully
developed various intricate castings and forgings which were imported
earlier.

CFFP has successfully manufactured various types of steels, e.g., creep

resistant steels, heat resistant steels, stainless steels, armor steels etc. per
Indian and International standards.

CFFP has been supplying sophisticated castings used in power sector e.g.,
steam turbine castings, turbo generator press rings, hydro turbine Kaplan
blades and Francis runners, compressor castings etc. The castings have also
been manufactured for Defense, Nuclear, Chemical and steel sectors.

Critical Forgings manufactured by CFFP include: HP, IP and LP rotors and

discs etc., from steam turbines, shafts, pole and plates, rotor bush, thrust
collars etc., for hydro sets and jackets and discharge cover for pumps
besides various types of critical forgings for defense, nuclear, steel, cement
and machine building industries. CFFP is further upgrading and
augmenting its facilities in the high growth and high technical areas.

Most of the castings and forgings produced by CFFP are of import

substitution nature. CFFP has also exported motor frame and steam turbine
castings and forgings to CIS and Germany. CFFP has also won the National
award for import substitution. It has been recognized as a well known steel
maker-Foundry and Forge Master by Indian Boiler Board. The American
Bureau of Shipping has also approved CFFP for the manufacture of castings
and forgings for ship building industry.
 Objective of the study:

 My main objective is to know about existing performance

appraisal system in BHEL.

 Know the practical implications of appraisal.

 To know about different phrases of Performance Appraisal.

 To check whether employees are satisfied with this system.

 To know the reason of distortion of the appraisal system among

them and their opinion on it.
SYSTEM OF BHEL OF PERFORMANCE APPRAISAL
In BHEL performance appraisal is done annually. The main objective for
which this system is designed is that it is meant for further improvements,
development and advancement of performance so as to achieve
organization’s objectives as well as overall development of employees

Process of performance appraisal in BHEL

At first the assessment form is designed by the personnel department
specialist and is approved by unit head.

Then the personnel department specialist sends these assessment forms to

the respective department heads of the organizations.

After these respective departments heads assess the performance of their

employees on the basis of the points given in the form.

After that remark are given by the department heads the next step is to give
recommendations were given by personnel department specialists

Finally this assessment forms is sent to the unit head for further evaluation
and recommendations.

BHEL uses graphic rating scale methods to evaluate the performance of

employees and this form are circulated 4 times in a year after every period
of 3 months so at last the total of 4 forms is considered for the evaluations.
 Bharat Heavy Electronics Ltd., Haridwar
PERFORMANCE/COMPETENCY EVALUATION REPORT
PERIOD OF REVIEW YEAR 2012-2013

NAME OF EMPLOYEE: DEPT.:

DESIGNATION: DATE OF JOINING:

QUALIFICATION: TOTAL EXPERIENCE:

ASSESSMENT CONDUCTED BY:

APPOINTMENT DETAILS: CONFIRMED

PERFORMANCE COMPETENCY REPORT:

MARK MARKS REMARKS

DESCREPTION RATED OBTAINED
(%) %

1 JOB KNOWLEDGE 30

2 GENERAL INTELLIGENCE 10

3 ATTITUDE TO WORK 10

4 REGULARITY & 5
PUNCTUALITY

5 BEHAVIOUR & CONDUCT 5

6 WORK EFFICIENCY 10

7 ADHERENCE TO 10
INSTRUCTION

8 INITIATIVE 10

9 KNOWLEDGE OF ISO 9001 : 5

2008
10 KNOWLEDGE OF QUALITY 5
POLICY & ITS OBJECTIVE

11 OVERALL MARKS/ 100

RATING OUT OF

ANY SPECIFIC ACHIEVEMENT DURING LAST ONE YEAR

PLEASE EVALUATE AND SPECIFY WHETHER HIS
PERFORMANCE/COMPETENCY LEVEL HAS IMPROVED AFTER
IMPARTING TRAINING

PERSONNEL DEPARTMENT VIEW AND FURTHER ACTION, IF ANY

HEAD OF DEPARTMENT
UNIT HEAD
 CHAPTER 3.
RESEARCH
METHODOLOGY
3.1 RESEARCH METHODOLOGY

Research can be defined as a systematic and objective process of gathering,

recording and analyzing data to guide decision making. It is mainly used to
reduce the uncertainty of decision. The key objective of any research is to
obtain accurate, relevant and timely information.

3.2Research Design

Research design can be defined as the plan and structure of inquiry,

formulated in order to obtain answer to research question on business
aspect. It constitutes the overall program of the business research process.
It can be understood as that which gives the blueprint o for collection and
measurements and analysis of business data. It helps researchers to utilize
available resources efficiently to achieve research objectives. It outlines the
actual research problems on hand and details the process for solving it. It
clearly describes the techniques to be used for selecting sample, collecting
data managing costs and other aspects that are essentials for conducting
business research. Decisions are taking depending on certain crucial issues
like the study purpose and objective the type of data needed the method
adopted for obtaining the data and analyzing it.

Research design is essential because it facilitate the smooth flow of various

research processes. An ideal research design is to be developed, if available
resources such as time, manpower and money are considered before
beginning the design. The validity of research results is based on the initial
research design. If it is not properly prepared it will jeopardize the whole
research process and will not meet its purpose. The research design had to
be developing very carefully, as it forms the foundation of the entire
research process that follows.
 Some important characteristics of a good research design are
flexibility adaptability, efficiency, begin economic and so on. An ideal
design should take in to account important factors like

 Identifying the exact research problem to be studied.

 The objective of the research

 The process of obtaining information

 The availability of adequate and skilled manpower.

 The availability of adequate financial resources for carrying out

research.

The research should be designed so that it adapts well to the type of

research to be carried out. For instance in the case of exploratory research,
which is usually carried out for discovering ideas for further research, the
research design should be flexible enough to consider different aspect of
the problem situation.

For research regarding testing of hypothesis for measuring casual

relationships between variables the research design should allow for
influences about causality along with minimizing bias and maximizing
reliability. These are some important characteristics of good research
design.

Research plan:
• Interviewing the prospective managers and employees.
• Analysis of data according to the information collected.
Sample Size:
Sample Size is: 50

Successful Survey: 50

Sample targets are H.R Managers and Employees.

Sampling Area: Within BHEL Ltd.

 CHAPTER 4.
DATA ANALYSIS
 DATA ANALYSIS AND INTERPRETATION
1. Your Performance is appraised as-

SI.NO. Description No. of Percentage

Respondents
1 Individually 40 75%
2 In team 10 15%
3 Both - 10%
Total 50 100

Percentage

10%

15%
Individually
In team
Both

75%

Interpretation:
The analysis reveals that maximum no of employees’ performance is
appraised individually and about 15% of respondents’ performance is
apprised in team.
2. Your performance is appraised by:

SI. NO. Description No. of Percentage

Respondents
1 Manager 42 84%
2 Personnel - 0%
Deptt. Specialist
3 High level 8 16%
Manger
Total 50 100

Performance is appraised by

High level manager

16%

Personnel deptt.
Specialist
0%

Manager
84%

Interpretation:
This answer shows that 84% of respondents’ performance is
apprised by managers while 16% of respondent’s performance is
apprised by high level managers.
3. The system of appraisal provides the real measurement of
the performance of the employee.

SI. No. Description No. of Percentage

Respondents
1 Correct 37 74
2 Partially Correct 10 20
3 Incorrect 3 6
Total 50 100

The system of appraisal provides the

real measurement of the employee
Incorrect
6%
Partiaaly Correct
20%

Correct
74%

Interpretation:
The analysis shows that maximum numbers of employees thinks that
appraisal provides real measurement of performance while 20% think that
it provides partial measurement.
4. Appraisal system shows any scope of Improvement in
one’s performance.

SI. No. Description No. of Percentage

Respondents
1 Agreed 32 64
2 Partially agreed 10 20
3 Disagreed 8 16
Total 50 100

Appraisal system shows any scope of

improvement in one’s performance
Disagreed
16%

Partially agreed
20%

Agreed
64%

Interpretation:
The analysis reveals that 64% of respondents are of the opinion that
performance appraisal shows scope of improvement in one’s performance
while 20% of them are partially agreed and 16% of them think it does not
help.
5. Performance appraisal helps you in.

SI. No. Description No. of Percentage

Respondents
1 Promotion 39 78
2 Career planning 7 14
3 Goal 4 8
achievement
Total 50 100

Performance appraisal helps you in

Goal achievement
8%
Career planning
14%

Promotion
78%

Interpretation:
The analysis implies that 78% of respondents think that it helps in
promotion, 14% of them think that it helps in career planning and 8% of
them think that it helps in goal achievement.
6. Appraisal system helps you to know your progress in
achieving the set targets.

SI. No. Description No. of Percentage

Respondents
1 True 42 84
2 Partially True 8 16
3 False - -
Total 50 100

Appraisal system helps you to know your

progress in achieving the set targets
Partially True
16%

True
84%

Interpretation:
This analysis indicates that maximum no. of employees think that appraisal
system helps in achieving the set targets and 16% respondents think that
this system is not much helpful in achieving the set targets.
7. To what extent you are satisfied with the existing
performance appraisal system.

SI. No. Description No. of Percentage

Respondents
1 To a great 35 70
extent
2 To a little extent 5 10
3 To some extent 10 20
Total 50 100

To what extent you are satisfied with the

existing performance appraisal system
To some extent
20%
To a little extent
10%

To a great
extent
70%

Interpretation:
This analysis implies that 70% of respondents are satisfied with the
existing performance appraisal to a great extent, 10% of them are satisfied
to a little extend and 20% of them are satisfied to some extent.
8. Time spent on your feedback.

SI. No. Description No. of Percentage

Respondents
1 30 min 10 20
2 60 min 40 80
3 More than 60 - -
min
Total 50 100

Time spent on feedback

0%

20%

30 mins.
60 mins.
Morine than 60 m

80%

Interpretation :
The above table and pie chart reveals that almost 80% employees in the
sample indicated that organization give almost one hour to take their
appraisal. However it is significant to note that 20% employees feels that
they get less than half an hour to be appraised.
9. Is the performance appraisal system is transparent.

SI. No. Description No. of Percentage

Respondents
1 yes 46 92
2 No 4 8
Total 50 100

Performance appraisal system is

transparent
No
8%

YES
NO

Yes
92%

Interpretation:
The analysis shows that 92% of respondents think that performance
appraisal system is transparent and 8% of them think that the system is not
transparent.
10. Do you feel that rewards are given according to your
performance?

SI. No. Description No. of Percentage

Respondents
1 Yes 36 72
2 No 14 28
Total 50 100

Rewards are given according to your

performance
No
28%

YES
NO

Yes
72%

Interpretation:
As per the analysis 72% of respondents think that rewards are given
according to their performance while 28% of them think that rewards are
not given to them according to their performance.
11. Is honest feedback given to you?

SI. No. Description No. of Percentage

Respondents
1 Yes 41 82
2 No 9 18
3 False -
Total 50 100

Honest feedback given to you

No
18%

YES
NO

Yes
82%

Interpretation:
This analysis shows that majority of employees said that honest feedback is
given to them and 18% of them say that feedback given to them is not
honest.
 CHAPTER 5

FINDINGS &
RECOMMENDATIONS
FROM THE PROJECT
 FINDINGS

 Through the research conducted by me, I found that many of the

employees are satisfied with the existing PERFORMANCE APPRAISAL
SYSTEM but now management feels that there is a need to change the
system from performance management system according to the
changing needs of the most of the organization.

 Through the existing performance appraisal of BHEL is very

successful but they want that kind of environment in the organization
in which there is a clear communication between the appraisal and
the appraise.

 The existing PERFORMANCE APPRAISAL SYSTEM OF BHEL only

focuses upon performance appraisal and generation of rating. So they
want to adopt performance management system in which focus is on
performance management.

 They want to adopt PERFORMANCE APPRAISAL SYSTEM because in

its emphasis is on performance improvement of individuals, teams,
organization and in the performance appraisal system emphasis is on
the relevant evaluation of individuals.

 Another reason to adopt PERFORMANCE APPRAISAL SYSTEM is that

performance rewarding may or may not be an integral part. Defining
and setting performance standards is an integral part.
 RECOMMENDATIONS

 PERFORMANCE APPRAISAL SYSTEM should be based on target

setting and preference should be measured on the basis of target
achieved. The PERFORMANCE APPRAISAL SYSTEM is parameter
based which sometimes are not quantifiable so they should adopt
PERFORMANCE APPRAISAL SYSTEM.

 PERFORMANCE APPRAISAL SYSTEM should only reward

performance so that it would be less controversial of BHEL the
performance has been linked to earning of increment.

 The PERFORMANCE APPRAISAL SYSTEM does not take care about

the placements. The placements of employees should be linked with
their performance.

 The present system also does not take care about the training of
employees. The training of employees should be linked with their
performance and potential.
CHAPTER 6

CONCLUSION
 Conclusion

After the critical analysis of performance appraisal system of BHEL the

PERFORMANCE APPRAISAL SYSTEM should based on target setting and
performance should be measured on the basis of target achieved. The
performance appraisal should only reward performance so that it would be
less controversial so top performers would be benefited. The topic of the
study undertaken by me is relative so it took lot of time to understand the
system. The support and encouragement of BHEL executives made the job
easy. I recorded the response with the help of questionnaire.

The basic idea designing the new system in the organization is that the
individual achieve higher level of performance in the existing role and to
provide on the job knowledge, positive attitude and skill based training in
the organization. Moreover it creates a climate professionalism and
prepares the psychologically not only to face the challenges but also to
excel.

The system to be evaluated should be reviewed periodically so as to ensure

that training provided and carried out must go along with the latest
technology. Limit for the improvement of the system is sky-high therefore
suggestions are always welcome.
 LIMITATIONS

 People are afraid of filling the questionnaire. It might be possible that

earlier they have not undergone this process.

 Organization is reluctant to provide some data. Which are

confidential so it is very difficult to analyze these data.

 Most of the people doesn’t want to answer the question properly

 Time is given to conduct the study was short.

 The sample may not be the exact representative of the universe.

 CHAPTER 7

BIBLIOGRAPHY
 BIBLIOGRAPHY

Personal management and Industrial relation, Prof. P.C.TRIPATHI

Research Methodology, C.R.KOTHARI.

Human Resource Management, L.M.PRASAD

WEBSITES-

www.bhellndia.com

www.google.com
CHAPTER8.

ANNEXURE
 QUESTIONNAIRE
 The basic objective of Performance Appraisal?
A. Fully
B. Partial
C. No

 Your performance is appraised as-

A. Individually
B. In Team
C. Both

 Your performance is appraised by-

A. Manager

B. Personnel Deptt. Specialist

C. High Level Manager

 The system of appraisal provides the real measurement of the

performance of the employee.

A. Correct

B. Partially Correct

C. Incorrect

 Appraisal system shows any scope of improvement in one’s

performance.

A. Agreed

B. Partially agreed

C. Disagreed
 Performance appraisal helps you in.

A. Promotion

B. Career planning

C. Goal Achievement

 Appraisal system helps you to know your progress in achieving the

set targets.

A. True

B. Partially True

C. False

 To what extent you are satisfied with performance appraisal System.

A. To a great extent

B. To a little extent

C. To some extent

 Time spent on your feedback.

A. 30 min

B. 60 min.

C. More than 60 min.

 Is the performance appraisal system is transparent.

A. Yes

B. No
 Do you feel that rewards are given according to your Performance?

A. Yes.

B . No

 Is honest feedback given to you?

A. Yes.

B. No

C. False

 If any development is required after performance appraisal then

proper training is given to you?

A. Yes.

B. No.

 Do you think performance appraisal is necessary in the Organization?

A. Yes.

B. No.