“A STUDY ON PERFORMANCE APPRAISAL AT ADANI

POWER, TIRORA”.

CHAPTER SCHEME

Sr. PARTICULARS
No.

1. INTRODUCTION OF THE TOPIC

2. COMPANY PROFILE

3. OBJECTIVES OF THE STUDY

4. HYPOTHESIS

5. SCOPE & IMPORTANCE OF THE STUDY

6. RESEARCH METHODOLOGY

7. DATA ANALYSIS AND INTERPRETATION

8. FINDINGS OF THE STUDY

9. LIMITATION OF THE STUDY

10. CONCLUSION

11. SUGGESTIONS AND RECOMMENDATIONS

12. ANNEXURE

 BIBLIOGRAPHY AND REFERENCE

Page No. 1
 QUESTIONNAIRE

Page No. 2
 CHAPTER-1
INTRODUCTION OF THE
TOPIC

Page No. 3
 CHAPTER-1
INTRODUCTION OF THE TOPIC

Human Resource (or personnel) management, in the sense of getting

things done through people, is an essential part of every manager’s responsibility,
but many organizations find it advantageous to establish a specialist division to
provide an expert service dedicated to ensuring that the human resource function
is performed efficiently.

“People are our most valuable asset” is a cliché, which no member of

any senior management team would disagree with. Yet, the reality for many
organizations is that their people remain undervalued, under trained and
underutilized.

The market place for talented, skilled people is competitive and expensive.
Taking on new staff can be disruptive to existing employees. Also, it takes time to
develop „cultural awareness, “product / process / organization knowledge and
experience for new staff members.

Functions of Human Resource Management

1. Following are the various functions of Human Resource Management

that are essential for the effective functioning of the organization:
2. Recruitment
3. Selection
4. Induction
5. Performance Appraisal
6. Training & Development

Page No. 4
WHAT IS “PERFORMANCE APPRAISAL”?

Performance Appraisal is defined as the process of assessing the

performance and progress of an employee or a group of employees on a given job
and his / their potential for future development. It consists of all formal
procedures used in working organizations and potential of employees. According
to Flippo, “Performance Appraisal is the systematic, periodic and an important
rating of an employee’s excellence in matters pertaining to his present job and his
Potential for a better job.”

 Select appropriate people with an appropriate selection process.

 Negotiate requirements and accomplishment-based performance
standards, outcomes, and measures.
 Provide effective orientation, education, and training.
 Provide on-going coaching and feedback.
 Conduct quarterly performance development discussions.
 Provide promotional/career development opportunities for staff.

Page No. 5
WHY PERFORMANCE APPRAISAL

I have chosen Performance Appraisal as my topic because Performance

Appraisal is viewed as a beneficial process within the context of an effective
system of personnel management. It is a very effective tool to improve
performance and productivity and for developing employees. 

It is accepted as abnormal management responsibility to review the

performance of all employees and for all managers to discuss performance with
their subordinates on a regular basis. It helps individuals to do better, raises self-
esteem and motivation.

Above all it strengthens the management/subordinate relationship and

fosters commitment. Performance evaluation is not a process to be avoided; rather
it should be implemented in all organizations and promoted as a key management
activity.

The benefits to be realized from a proper evaluation system far outweigh

the time and effort required to develop, implement and maintain the process.

Page No. 6
RANKING METHODS

For comparative purposes, particularly when it is necessary to compare people

who work for different supervisors, individual statements, ratings, or appraisal
forms are not particularly useful. Instead, it is necessary to recognize that
comparisons involve an overall subjective judgment to which a host of additional
facts and impressions must somehow be added. There is no single form or way to
do this. The best approach appears to be a ranking technique involving pooled
judgment.

The two most effective methods are alternation ranking and paired comparison
ranking.

1. “Alternation ranking”:
Ranking of employees from best to worst on a trait or traits is another method for
evaluating employees. Since it is usually easier to distinguish between the worst
and the best employees than to rank them, an alternation ranking method is most
popular. Here subordinates to be rated are listed and the names of those not well
enough to rank are crossed. Then on a form as shown

below, the employee who is highest on the characteristic being measured and the
one who is the lowest are indicated. Then chose the next highest and the next
lowest, alternating between highest and lowest until all the employees to be rated
have been ranked.

2. “Paired-comparison ranking”:
This technique is probably just as accurate as alternation ranking and might be
more so. But with large numbers of employees it becomes extremely time
consuming and cumbersome. Both ranking techniques, particularly when
combined with multiple rankings (i.e., when two or more people are asked to
make independent rankings of the same work group and their lists are averaged),

Page No. 7
are among the best available for generating valid order-of-merit rankings for
salary administration purposes.

3. Assessment Centers
So far, we have been talking about assessing past performance. What about the
assessment of future performance or potential? In any placement decision and
even more so in promotion decisions, some prediction of future performance is
necessary. How can this kind of prediction be made most validly and most fairly?

4. 360 Degree Feedbacks

Many firms have expanded the idea of upward feedback into what the call 360-
degree feedback. The feedback is generally used for training and development,
rather than for pay increases. Most 360 Degree Feedback system contains several
common features. Appropriate parties – peers, supervisors, subordinates and
customers, for instance – complete survey, questionnaires on an individual. 360
degree feedback is also known as the multi-rater feedback, whereby ratings are
not given just by the next manager up in the organizational hierarchy, but also by
peers and subordinates. Appropriates customer ratings are also included, along
with the element of self appraisal. Another technique that is useful for coaching
purposes is, of course, MBO. Like the critical incident method, it focuses on
actual behavior and actual results, which can be discussed objectively and
constructively, with little or no need for a supervisor to "play God."

Page No. 8
ADVANTAGES

Instead of assuming traits, the MBO method concentrates on actual outcomes. If

the employee meets or exceeds the set objectives, then he or she has demonstrated
an acceptable level of job performance. Employees are judged according to real
outcomes, and not on their potential for success, or on someone's subjective
opinion of their abilities.

The guiding principle of the MBO approach is that direct results can be observed
easily. The MBO method recognizes the fact that it is difficult to neatly dissect all
the complex and varied elements that go to make up employee performance.

MBO advocates claim that the performance of employees cannot be broken up

into so many constituent parts, but to put all the parts together and the
performance may be directly observed and measured.

DISADVANTAGES

This approach can lead to unrealistic expectations about what can and cannot be
reasonably accomplished. Supervisors and subordinates must have very good
"reality checking" skills to use MBO appraisal methods. They will need these
skills during the initial stage of objective setting, and for the purposes of self-
auditing and self-monitoring.

Variable objectives may cause employee confusion. It is also possible that fluid
objectives may be distorted to disguise or justify failures in performance.

Page No. 9
Rating Errors in Performance Appraisals

Performance appraisals are subject to a wide variety of inaccuracies and biases

referred to as 'rating errors'. These errors can seriously affect assessment results.
Some of the most common rating errors are:-

 Leniency or severity :-
Leniency or severity on the part of the rater makes the assessment Subjective.
Subjective assessment defeats the very purpose of performance appraisal. Ratings
are lenient for the following reasons:
· The rater may feel that anyone under his or her jurisdiction who is rated
· Unfavorably will reflect poorly on his or her own worthiness.
· She/he may feel that a derogatory rating will be revealed to the rate to detriment
the relations between the rater and the rate.
· She/he may rate leniently in order to win promotions for the subordinates and
therefore, indirectly increase his/her hold over him.

 Central tendency :-
This occurs when employees are incorrectly rated near the average or middle of
the scale. The attitude of the rater is to play safe. This safe playing attitude stems
from certain doubts and anxieties, which the raters have been assessing the rates.

 Halo error :-
A halo error takes place when one aspect of an individual's performance
influences the evaluation of the entire performance of the individual. The halo
error occurs when an employee who works late constantly might be rated high on
productivity and quality of output as well as on motivation. Similarly, an
attractive or popular personality might be given a high overall rating. Rating
employees separately on each of the performance measures and encouraging
raters to guard against the halo effect are the two ways to reduce the halo effect.

Page No. 10
 Rater effect :-
This includes favoritism, stereotyping, and hostility. Extensively high or low
score are given only to certain individuals or groups based on the rater's attitude
towards them and not on actual outcomes or behaviors; sex, age, race and
friendship biases are examples of this type of error.

 Primacy and Regency effects :-

The rater's rating is heavily influenced either by behavior exhibited by the rate
during his early stage of the review period (primacy) or by the outcomes, or
behavior exhibited by the rate near the end of the review period (regency). For
example, if a salesperson captures an important contract/sale just before the
completion of the appraisal, the timing of the incident may inflate his or her
standing, even though the overall performance of the sales person may not have
been encouraging. One way of guarding against such an error is to ask the rater to
consider the composite performance of the rate and not to be influenced by one
incident or an achievement.

Performance dimension order:-

Two or more dimensions on a performance instrument follow each other and both
describe or rotate to a similar quality. The rater rates the first dimensions
accurately and then rates the second dimension to the first because of the
proximity. If the dimensions had been arranged in a significantly different order,
the ratings might have been different.

 Spillover effect :-
This refers lo allowing past performance appraisal rating lo unjustifiably
influence current ratings. Past ratings, good or bad, result in similar rating for
current period although the demonstrated behavior does not deserve the rating,
good or bad.

Page No. 11
Key Concepts In Performance Management System

In order to understand the Performance Management System at Adani Power ,

some concepts need to be explained which play a very important role in using the
PMS successfully.
They are:

o Kra’s (Key Result Areas):

The performance of an employee is largely dependent on the KRA score achieved

by the employee during that particular year. Thus, it is necessary to answer a few
basic questions i.e.
· What are the guidelines for setting the KRA‟s for an employee?
· How does an employee write down his KRA‟s for a particular financial year?
· KRA‟s: The Four Perspectives.
· How is the KRA score calculated for an employee on the basis of the targets
· Sets and targets achieved?

o Behavioral Traits:

Some of the qualitative aspects of an employee’s‟ performance combined with

the general behavioral traits displayed by the employee during a year constitutes
his behavior traits. An employee is assigned the rating on the
basis of the intensity of the behavior displayed by him. They play a very
important role in the deciding the final performance rating for an employee as is
even capable of shifting the rating one level upwards/downwards.

o Bharti 2010 Leadership Competency Framework:

This competency framework is a simple and structured way to describe the

elements of behaviors required to perform a role effectively. This framework also
tries to assess the performance of an employee objectively.

Page No. 12
PERFORMANCE RATING PROCESS

 Exceptional Contributor (Ec)

· Performs consistently and substantially above expectations in all areas

· Achieves a final score greater than or equal to 115%

· Consistently delivers on stretch targets

· Is proactive

· Spots and anticipates problems, implements solutions

· Sees and exploits opportunities

· Delivers ahead of time

· Sees the wider picture-impacts across business

· Focuses on what’s good for the business

· Seen as role model by others

· Recognized as exceptional by other functions as well

· Motivates others to solve problems

· Develops others

· Provides open and honest feedback

· Able to establish and lead cross-functional teams

Page No. 13
 Significant Contributor (Sc)

· Performs above expectations in all areas

· Achieves final score between 100-114%
· Versatile in his/ her area of operation
· Develops creative solutions and require little / minimal supervision
· Sets examples for others Take ownership of own development Coaches others
· Demonstrates business initiative Is self motivated
· Supportive team player
· Leads own team very effectively
· Demonstrate functional initiative

Page No. 14
METHODS OF PERFORMANCE APPRAISAL

The foregoing list of major program pitfalls represents a formidable challenge,

even considering the available battery of appraisal techniques. But attempting to
avoid these pitfalls by doing away with appraisals themselves is like trying to
solve the problems of life by committing Suicide. The more logical task is to
identify those appraisal practices that are

(a) Most likely to achieve a particular objective.

(b) Least vulnerable to the obstacles already discussed.

Before relating the specific techniques to the goals of performance appraisal

stated at the outset of the article,

Essay Appraisal

In its simplest form, this technique asks the rater to write a paragraph or more
covering an individual's strengths, weaknesses, potential, and so on.

Graphic Rating Scale

This technique may not yield the depth of an essay appraisal, but it is more
consistent and reliable.

Field Review

The field review is one of several techniques for doing this. A member of the
personnel or central administrative staff meets with small groups of raters from
each supervisory unit and goes over each employee's rating with them to

Forced-Choice Rating

Like the field review, this technique was developed to reduce bias and establish
objective standards of comparison between individuals, but it does not involve the
intervention of a third party.

Page No. 15
 CHAPTER-2
COMPANY PROFILE

Page No. 16
 CHAPTER-2

COMPANY PROFILE

ADANI POWER MAHARASHTRA LTD

.
Adani Power Limited is a holding company. The Company is engaged in providing electric
power generation by coal-based thermal power plants and coal trading. Its business activity is
undertaken at Mundra Thermal Power Plant of the Company in Gujarat and Thermal Power
Plant of its subsidiaries at Tiroda (Maharashtra), at Kawai (Rajasthan) and at Udupi
(Karnataka). It has approximately five power projects. The Company operates an aggregate of
approximately 10,480 megawatts generation capacity comprising of over 4,620 megawatts at
Mundra; approximately 3,300 megawatts at Tiroda; over 1,320 megawatts at Kawai;
approximately 1,200 megawatts at Udupi, and over 40 megawatts (solar) at Kutch, Gujarat. It
focuses to sell the power generated from these projects under a combination of long term Power
Purchase Agreements and on merchant basis. Its subsidiaries include Adani Power Maharashtra
Limited, Adani Power Rajasthan Limited, Udupi Power Corporation Limited and Adani Power
Resources Limited

Page No. 17
Adani power limited is the process business arm of Indian business conglomerate adani
group with head office at ahmdabad gujrat.the company is currently implementing
16500 mv at different stages of construction.
Its mission is to achieve 20000 mw by 2020.The company currently produces electricity
using coal.100 mw of solar power station is under adanced stage of implementation at
surendranagar in gujrat out of which 40 mw is already commissioned. The company has
gone to long term PPAs of about 7200MW of its 9280MW with government of
Gujrat ,Maharashtra, Haryana

Adani power limited

Type Public (BSE:533096,NSE:533096)

Industry Energy

Founded 22 August 1996

Headquaters Ahmdabad,India

Key people Gautam Adani(Chairman)

Product Electricity generation,transmission and

distribution;energy trading
Revenue Rs4240 crore
Net income Rs 294 crore
Employees 2000(2011)

Parent Adani Group

Website adanipower.com

Page No. 18
Adani power Has a 4620 MW thermal power project in Mundra,Kutcg region 3300
MW in Tiroda,Maharashtra and 1320 MW at kawai rajasthan.In march 2012 company
synchronized its last 9th unit of 660 Mw at Mundra and successfully completed the
mundra project of 4620 MW in committed time,therapy APL become the largest
SINGLE LOCATION coal based Thermal power plant in private sector.Now at
Mundra company has 4 units 330 MW and 5 units 660 Mw.At location Tiroda
Maharashtra 01 unit out of 05 has been synchronized in the mid of 2012 another group
is going to syncronise in the end of 2012.
)

Page No. 19
ROLES IN THE PERFORMANCE APPRAISAL PROCESS

 Reporting Manager

o Provide feedback to the reviewer / HOD on the employees‟ behavioral

traits indicated in the PMS Policy Manual
o Ensures that employee is aware of the normalization / performance
appraisal process
o Address employee concerns / queries on performance rating, in
consultation with the reviewer

 Reviewer (Reporting Manager’s Reporting Manager)

o Discuss with the reporting managers on the behavioral traits of all the
o Employees for whom he / she is the reviewer
o Where required, independently assess employees for the said behavioral
traits; such assessments might require collecting data directly from other
relevant employees

 HOD (In some cases, a reviewer may not be a HOD)

o Presents the proposed Performance Rating for every employee
of his / her function to the Normalization committee.
o HOD also plays the role of a normalization committee member.
o Owns the performance rating of every employee in the
department.
 HR Head
o Secretary to the normalization committee
o Assists HOD‟s / Reporting Managers in communicating the
performance

Page No. 20
 o Rating of all the employees.
 Normalization Committee

· Decides on the final bell curve for each function in the respective Business
Unit / Circle
· Reviews the performance ratings proposed by the HOD‟s, specifically on the
upward / downward shift in ratings, to ensure an unbiased relative ranking of
employees on overall performance, and thus finalize the performance rating of
each employee.

The Main Tasks Of Establishment Section

 Salary

 Traveling Allowance

 Leave Travel/Concession

 Staff Advances

 Miscellaneous Payment

 Medical Allowance

 Provident Fund

 Pension

 Insurance

 Gratuity

Page No. 21
Salary

The first thing that comes while preparation of salary is absenteeism of the
employee.. For the calculation of absenteeism of the employee an absentee
statement is prepared by HR which is finalized with the approval of HOD of each
department. This statement contains the details regarding the presence and
absence of employees, the type of leave taken by him and shift duty done by him
in a month. This statement is further sent to Finance department for updating &
validation.

Thus the salary automatically tallies the absentee data and goes into
payroll. The establishment department does the salary processing and prepares a
pay slip.

Traveling Allowance

This allowance is paid to employee for any traveling done in the benefits of the
company. These are three types of TA given to employees which is mainly paid
through cash payment voucher:

 Official Tour

 Medical Tour

 Transfer Tour

It’s refers to the tour/ journey for official purposes, for which following expenses
are provided.

 Conveyance fair as per entitlement.

 Local conveyance charges as per entitlement.

 Hotel charges as per entitlement.

Page No. 22
  DA as per entitlement and according to city.

 Miscellaneous payment: telephone charges, reservation charges, extra

day stay, cancellation of ticket etc. as per entitlement.

 It refers to the tour/ journey made by the employees to any place for
treatment, in case of some diseases to him or any one of his dependent. For such
kind of treatment, he must get referred by the WCL doctor and get approved by
the competent authority. The various entitlements are:

 Conveyance fair as per entitlement.

 Local conveyance charges: from station to the hospital.

 Medical expenses.

Page No. 23
 CHAPTER-3
OBJECTIVES OF THE
STUDY

Page No. 24
 CHAPTER- 3

OBJECTIVES OF THE STUDY

1. To carry out the study of Adani Power, we framed the following

objectives Identification of the technique of performance appraisal followed in
Adani Power .

2. Employee attitude towards the present appraisal system.

3. Review of the current appraisal system in order to

 Enhance productivity
 Attain global standards

4. To provide suggestions & recommendations from the study conducted.

5. To provide feedback, improving communication, understanding training
needs.
6. To clarity roles &responsibility & determine how to allocate rewords.
7. To judge gap between actual &desired performance.

Page No. 25
CHAPTER-4
HYPOTHESIS

Page No. 26
 CHAPTER-4

HYPOTHESIS

Hypothesis is considered as the most important instrument in research. A

hypothesis is an assumption or some assumption to be proved or disapproved.

Hypothesis can also be divided as

(1) Null Hypothesis

(2) Alternative Hypothesis.

In line with the problem of this study has following hypothesis.

 H11: Performance Appraisal is not having positive effect on Adani Power

employee.

 H12: Performance Appraisal is having positive effect on Adani Power

Employees.

Page No. 27
 CHAPTER-5
SCOPE & IMPORTANCE OF
THE STUDY

Page No. 28
 CHAPTER-5

SCOPE & IMPORTANCE OF THE STUDY

1. Performance appraisal system provide an opportunity for the redressal of

employee grievance.

2. Performance appraisal system aims all strengthening mutual understanding &

relationship between superior & subordinates.

3. The research needs is limited & human resource development in general &
performance appraisal practice in particular of Adani Power .

Page No. 29
 CHAPTER-6
RESEARCH METHODOLOGY

Page No. 30
 CHAPTER-6

RESEARCH METHODOLOGY

Research refers to a search for knowledge. It is a systematic method of

collecting and recording the facts in the form of numerical data relevant to the
formulated problem and arriving at certain conclusions over the problem based on
collected data.

Thus formulation of the problem is the first and foremost step in the
research process followed by the collection, recording, tabulation and analysis
and drawing the conclusions. The problem formulation starts with defining the
problem or number of problems in the functional area. To detect the functional
area and locate the exact problem is most important part of any research as the
whole research is based on the problem.

According to Clifford Woody, Research comprises defining and

redefining problems, formulating hypothesis or suggested solutions:
collecting, organizing and evaluating data: making deductions and reaching
conclusions: and at last carefully testing the conclusions to determine
whether they fit the formulating hypothesis.

Research can be defined as “the manipulation of things, concepts or

symbols for the purpose of generalizing to extend, correct or verify
knowledge, whether that knowledge aids in construction of theory or in the
practice of an art”

In short, the search for knowledge through objective and systematic

method of finding solution to a problem is research.

Page No. 31
Data sources

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

Primary Data: -

The primary data are those, which are collected afresh and for the first time and
thus happen to be original in character. The primary data were collected through
well-designed and structured questionnaires based on the objectives.

Primary Source

Primary data are first hand information and are collected from various sources
like:

 Informal interviews
 Through Structured questionnaire
 Observation

Secondary Data:

The secondary data are those, which have already been collected by someone else
and passed through statistical process. The secondary data required of the
research was collected through various newspapers, and Internet etc.

Secondary Source

The secondary source consists of readily available data’s and is already compiled
statistical statements and reports. Secondary data’s are collected from;

 Business Magazines
 Internet
 Annual reports
 Journals

Page No. 32
Instrument for data collection

When people speak of research methods, they often are referring to processes and
instruments used for gathering information. Three important processes are content
analyses, observations, and interviews. Three important instruments are factual
questionnaires, inventories, and tests. The purpose of this chapter is to identify
basic characteristics of these data-collection techniques and to illustrate their
qualitative and quantitative forms.

Sampling

Sample was taken on judgmental basis. The advantage of sampling are that it is
much less costly, quicker and analysis will become easier. Sample size is 12 will
100% employees of Adani Power .

Page No. 33
 CHAPTER-7
DATA ANALYSIS &
INTERPRETATION

Page No. 34
 CHAPTER-7

DATA ANALYSIS & INTERPRETATION

1. How long have you been with Adani Power ? (In Year)

Year of service

12% 4%
30%
below 2yrs
2-5 yrs
5-10 yrs
10yrs and above

54%

Data Interpretation

From the above pie chart we conclude that the maximum year of service of the
employees of Adani Power in Tirora is maximum between 5-10 years (i.e. 54%)
and minimum is below 2years (i.e. 4%).

Page No. 35
2. Are you aware of the performance appraisal technique being
followed at Adani Power ?

Awareness of technique of Performance

Appraisal
28%

Yes
No

72%

Options No. of
Responses
Yes 36
No 14

Interpretation

From the above pie chart we conclude that maximum employees are aware of
their performance appraisal technique (i.e. 72%) and the employee not aware of it
is minimum (i.e. 28%)

Page No. 36
3. What is the employee’s opinion as to the present appraisal
system?

Employees’ opinion as to the present appraisal

system
2% 24%
30%

Fully Satisfied
Satisfied
Can‟t Say
Dissatisfied

44%

No. Of
Options respondents Percentage

Fully satisfied 12 24

Satisfied 22 44

Can’t Say 15 30

Dissatisfied 1 2

Interpretation

From the above pie chart we conclude that maximum employees are satisfied with
the present appraisal system ( i.e. 44%) and minimum (i.e. 2%) are dissatisfied.

Page No. 37
 4. What is the employee perception as to the frequency of
appraisal?

Employee perception as to the frequency of

appraisal
2% Once During The servise
6% period
Continuous
Never
Can’t Say

92%

No. Of
Options respondents Percentage
Once During The
Service Period 1 2%
Continuous 46 92%
Never 0 0%

Can’t Say 3 6%

Interpretation

From the above pie chart we find that the maximum (i.e. 92%) of the employees
think that the Frequency of appraisal must be continuous whereas minimum (i.e.
0%) none of the employees feel that Adani Power should not appraise.

Page No. 38
5. If continuous appraisal – what should be the gap between two
appraisal period?

20%
36%

Quarterly
Half Yearly
Yearly

44%

No. Of
Options respondents Percentage
Quarterly 10 20%
Half Yearly 22 44%

Yearly 18 36%

Interpretation

From the above pie chart we conclude that maximum (i.e. 44%) of the employees
want to Consider performance appraisal half yearly whereas minimum (i.e. 20%)
of them want it quarterly.

Page No. 39
6. Who should do the appraisal?

Who should do the appraisal?

16% 24%
Superior
Peer
Subordinate
Self Appraisal
Consultant
8%
All of the above
Superior + Peer
4%
48%

Options No. Of respondents Percentage

Superior 12 24%
Peer 0 0%
Subordinate 0 0%
Self Appraisal 4 8%
Consultant 2 4%
All of the above 24 48%
Superior + Peer 8 16%

Interpretation

From the above pie chart we conclude that the maximum employees (i.e. 24%)
want to get the appraisal through superior, self appraisal, consultant. Whereas
none of them want to get it done from their peers and subordinates.

Page No. 40
7. Does appraisal help in polishing skills and performance area?

Does appraisal help in polishing skills and

performance area?
16%
Yes
10%
No
Somewhat

74%

Options No. Of Respondents Percentage

37 74%
Yes
No 10%
5
Somewhat 8 16%

Interpretation

If the process of appraisal does not lead to the improvement of the skills and
proficiency of the employees, the very purpose of appraisal becomes illogical. In
the survey conducted it was observed that nearly 74 % of the respondents agree
that Performance Appraisal does leads to polishing the skills of the employees.
Nearly 10 % of the respondents view that it does not serve this purpose and
around 16 % were not able to respond as to whether it serve any such purposes or
not.

Page No. 41
8. Do you think personal bias creeps in while appraising an
individual employee?

Does personal bias creeps-in while appraising an

employee

Yes
No

Options No. Of Respondents Percentage

Yes 41 82%

No 9 18%

Interpretation

In the process of appraising, both the parties are human being, that is, the one who
is being apprised and the other who is appraising. Thus, there bound to be
subjectivity involved, be it an objective way of appraising. Thus, when asked
from among the sample size of 50 respondents, as huge as 82 % respondents that
personal bias do creep in while appraising an individual. Hence, it is inevitable to
say that personal likings do not come in the process of appraisal. It is the extent to
which the appraiser manages it so that it does not become very partial and bias.

Page No. 42
9. If given a chance, would employees like to review the current
appraisal technique

24%
32%

Yes
No
Can't Say

44%

Options No. Of Respondents Percentage

Yes 16 32%

No 22 44%

Can’t Say 12 24%

Interpretation

From the above pie chart we conclude that the maximum employees (i.e. 32%) do
not want to review the performance appraisal system whereas minimum (i.e.
24%) can’t comment about the same.

Page No. 43
 10. What is the appropriate method of conducting the
performance appraisal?

Appropriate method of conducting the

performance appraisal
12% 6% Ranking Method
Paired Comparison
Critical Incidents
MBO
20% Assessment Centre
58% 360 degree

4%

No. Of
Options Respondents Percentage
Ranking Method 6 12%

Paired Comparison 0 0%

Critical Incidents 3 6%

MBO 10 20%

Assessment Centre 2 4%

360 degree 29 58%

Interpretation

From the above pie chart we conclude that the maximum (i.e. 58%) of the
employees prefer the 360 degree technique of performance appraisal whereas the
minimum (i.e. 0%) want paired comparison technique.

Page No. 44
11. Does Performance Appraisal leads to identification of hidden
potential of the employees?

4%

Yes
No

96%

Options No. of Percentage

Responses
Yes 48 96%

No 2 4%

Interpretation-

From the above pie chart we interpret that maximum (i.e. 96%) of the employees
feels that performance appraisal leads to identification of hidden potential
whereas minimum (i.e. 4%) disagree with the same.

Page No. 45
 CHAPTER-8
FINDINGS OF THE STUDY

Page No. 46
 CHAPTER-8

FINDINGS OF THE STUDY

1. The very concept of performance appraisal is marketed throughout the

organization; people have accepted it and understood its importance to the
organization.

2. To market such a concept, it should not start at bottom; instead it should be

started by the initiative of the top management. This would help in percolating
down the concept to the advantage of all, which includes the top management as
well as those below them. This means that the top management has to take a
welcoming and positive approach towards the Change that is intended to be
brought.

3. Further, at the time of confirmation also, the appraisal form should not lead to
duplication of any information. Instead, detailed appraisal of the employee’s work
must be done – which must incorporates both the work related as well as the other
personal attributes that are important for work performance.

4. It should be noted that the appraisal form for each job position should be
different as each job has different knowledge and skill requirements. There should
not be a common appraisal form for every job position in the organization.

5. The job and role expected from the employees should be decided well in
advance and that too with the consensus with them.

6. A neutral panel of people should do the appraisal and to avoid subjectivity to a

marked extent, objective methods should be employed having quantifiable data.

7. The time period for conducting the appraisal should be revised, so that the
exercise becomes a continuous phenomenon.

8. Transparency into the system should be ensured through the discussion about
the employee’s performance with the employee concerned and trying to find out
the grey areas so that training can be implemented to improve on that.

Page No. 47
9. The feedback doesn’t come from multiple sources. It should to increase the
efficiency.

10. Lack of Truth about Organization culture is conveyed through 90 degree of

appraisal system. it should be overcome.

11. Superiors response tends to be bias, which makes employees unsatisfied.

Thus, a better system can be installed.

12. Linking, Findings to the rewards can prove to be unfair. Transparency should
be bought in appraisal system.

13. Assesses denies the truth of negative feedback, as it’s done by one person.
More parties should be involved.

14. System can be used to humiliate people, if Employer and employee relations
are not good.

15. Ignores performance in terms of reaching goals, which can be disastrous for
the organization Ideally in the present day scenario, appraisal should be done,
taking the views of all the concerned parties who have some bearing on the
employee. But, since a change in the system is required, it cannot be a drastic one.
It ought to be gradual and a change in the mindset of both the employees and the
head is required.

Page No. 48
 CHAPTER-9
LIMITATIONS OF THE
STUDY

Page No. 49
 CHAPTER-9

LIMITATIONS OF THE STUDY

Lack Of Reliability

Lack Of Knowledge

Negative Approach

Multiple Objectives

Errors In Rating

Page No. 50
CHAPTER-10
CONCLUSIONS

Page No. 51
 CHAPTER-10

CONCLUSIONS

 Performance appraisal ratings can influence many personnel decisions, and

thus care in the development and use of performance appraisal systems is
warranted.

 There appears to be at least as much effort expended on performance

appraisal in the federal government as elsewhere.

 Where performance appraisal is viewed as most successful in the private

sector, it is firmly embedded in the context of management and personnel
systems that provide incentives for managers to use performance appraisal
ratings as the organization intends.

 These incentives include managerial flexibility or discretion in rewarding

top performers and in dismissing those who continually perform below
standards.

 When performance appraisal ratings are used to distribute pay (as in a merit
plan) the size of the merit pay offered allows managers to differentiate
outstanding performers from good and poor performers, and thus provides
them with incentives to differentiate. Whatever incentives there are for
federal managers seem currently dwarfed by the disincentives.

Page No. 52
 CHAPTER-11
SUGGESTIONS AND
RECOMMENDATIONS

Page No. 53
 CHAPTER-11

RECOMMENDATION OF THE STUDY

After having analyzed the data, it was observed that there was appraisal in the
organization. It is an effective tool, since it is on continuous basis. Performance
appraisals in Adani Power are satisfactory for its effective management and
evaluation of staff. Appraisals here are helping individuals to develop, improve
organizational performance, and feed into business planning. Performance
appraisals enable management in monitoring of standards, agreeing expectations
and objectives, and delegation of responsibilities and tasks. Staff performance
appraisals also establish individual training needs and enable organizational
training needs analysis and planning. 90degrees appraisal system or review is
being followed in Adani Power i.e. feedback that comes from members of an
employee's immediate work circle most often; 360-degree feedback will include
direct feedback from an employee's subordinates, peers, and supervisor(s), as well
as a self-evaluation. It can also include, in some cases, feedback from external
sources, such as customers and suppliers or other interested stakeholders. The
appraisal process is continuous here and encourages employee productivity with
positive feedbacks.

Page No. 54
 BIBLIOGRAPHY

BOOKS:

 VSP Rao — Human Resource Management, Anurag Jain for excel books, 2005
ninth edition.

 R. Kothari - Research Methodology Methods and Techniques, New age

international publishing, second edition.

 Donald R Cooper, Pamela S Schindler — Business Research Methods, MC

Graw Hill, ninth edition.

 Performance management — Michael Armstrong and Angela Baron.

 Human Resource Management Prentice, Half of Indian private limited 2004

ninth edition. -Gary Dessler

WEBSITE:

 Economic Times

 www.Scribd.com

 www. Adani Power .com

 http://www. .com/images/ motor_logo.png

Page No. 55
 QUESTIONNAIRE

1. Name……………………

2. Age: ………………….…

3. Gender: Male Female

4. Designation……………..

Disclaimer: Your response via this questionnaire will be used strictly for
academic purposes. There will not be any commercial solicitation or usage of the
response in any kind / form whatsoever.

Q1- How long have you been with Adani Power ? (In Year)

a) Below 2
b) 2-5
c) 5-10
d) 10 and above

Q2- Are you aware of the performance appraisal technique being followed at
Adani Power ?

a) Yes
b) No
Q3- Do you think personal bias creeps in while appraising an individual?

a) Yes
b) No

Q4-What is your perception as to the frequency of appraisal?

a) Once during the service period
b) Continuous
c) Never
d) Can’t Say

Page No. 56
Q5-If continuous appraisal – what should be the gap between two appraisal
period?
a) Quarterly
b) Half Yearly
c) Yearly

Q6-Does Performance Appraisal helps in improving the productivity of the

employees?
Motivated Indifferent De-motivated
+ Feedback
- Feedback
Neutral

Q7- Does the appraisal system helps in polishing the skills or performance area?

a) Yes
b) No
c) Somewhat
Q8-Who in your opinion should appraise the employee ?

a) Superior
b) Peer
c) Subordinates
d) Self Appraisal
e) Consultant
f) All of the above

Q9- What is your opinion as to the present appraisal system?

a. Fully satisfied
b. Satisfied
c. Can’t say
d. Dissatisfied
Q10-If given a chance or an opportunity would you like that the current appraisal
procedure should be reviewed?

Page No. 57
 a) Yes
b) No
c) Can’t Say

Q11- Does Performance Appraisal leads to identification of hidden potential of

the employees?
a) Yes
b) b) No

Q12- What according to you should be the appropriate method for conducting
performance appraisal?

a) Rating the employee on number of traits along with the range of performance
for each by the supervisor.
b) For every trait, each subordinate is paired with and compared to every other
Subordinate.
c) Reviewing employees on the basis of identified specific examples of good or
poor performance.
d) Setting specific measurable goals with each employee and periodically
reviewing the progress made.
e) Reviewing performance through case studies, presentations, role playing, etc.
for future performance.
f) Receiving feedback from people whose views are considered helpful and
relevant including the appraise himself.

Que -13. Any suggestions

______________________________________________________________

______________________________________________________________

Page No. 58