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ASSIGNMENT ON Steel Authority of India (SAIL)

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Submitted to:-Mr.Nitin Vasu Submitted by:-Bhupender Ku. Mehto

INDEX
S.NO. 1. 2. 3. 4.
5.

Particulates Introduction to topic Company profile

Page no.

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6. 7.

INTRODUCTION
Almost every organization in one way or another goes through a periodic ritual, formally or informally, known as performance appraisal. Performance appraisal has been called many things .The formal performance appraisal has been called a tool of management, a control process, an activity and a critical element in human resources allocation. Uses for performance appraisal have included equal employment opportunity consideration, promotion, and transfer and salary increment. Primarily performance appraisal has been considered an overall system for controlling an organization. Performance appraisal has also been called an audit function of an organization regarding the performance of individual, group and entire division. Performance appraisal may be defined as a structured formal interaction between a subordinate and supervisor ,that usually takes the form of a periodic interviews (annual and semi-annual), in which the work performance of subordinate is examined and examined , with a by his supervisor with a view of identifying weakness an strength as well as opportunities for improvement and skill development .

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Almost every organization in one way or another goes through a periodic ritual, formally or informally, known as performance appraisal. Performance appraisal has been called many things. The formal performance appraisal has been called a tool of management, a control process, an activity and a critical element in human resources allocation. And since people differ in their abilities and aptitudes. These differences are natural to a great extent and cannot be eliminated even by giving the same basic education and training to them. There will be some differences in the quality and quantity of work done by different employees even on the same job. Thus, there is a great need to have suitable performance appraisal system to measure the relative merit of each employee. The basic purpose of performance appraisal is to facilitate orderly determination of an employees worth to the organization of which he is a part. However, a fair determination of the worth of an employee can take place only by appraising numerous factors some of which are highly subjective, as for instant, attendance, while others are highly subjective, as for instant, attitude and personality. The objective factor can be assessed accurately on the basis of records maintained by the Human resource or personnel Department, but there is no device to measure the subjective factor precisely. Notwithstanding this, appraisal of these factors must be done to achieve the full appreciation of every employee merit. Therefore, it can be said that, performance appraisal means systematic evaluation of the personality and performance of each employee by his supervisor or some other person trained in the techniques of merit rating. It employs various rating techniques for comparing individual employees in a work group, in term of personal qualities or deficiencies and the requirements of their respective jobs. To quote dale Yoder, performance appraisal includes all formal procedures used to evaluate personalities and contribution and potential of group members in a working organization. It is a continuous process to secure information necessary for making correct and objective decisions on employees. The comparison of performance with job requirements helps in finding out the merit of individual employees in a week group. Supervisor or an independent appraiser may do rating. Performance appraisal is a formal program in an organization, which is concerned with not only the contribution of the members who form part of the organization, but aims at spotting the potential also. The satisfactory performance is only a part of the system as a whole and the management needs more information than mere performance ratings of the subordinates. There are no two opinions about the necessity of performance appraisal, which can meet requirements of the management to achieve the organizational goals.

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Performance appraisal is the systematic evaluation of the individual with respect to his performance on the job and his potential for development. Performance appraisal is concerned with determining the differences among the employees working in the organization. Generally, the individuals immediate superior in the organization and whose performance is reviewed in turn by his superior does the evaluation. Thus, everyone in Performance appraisal employs rating techniques for comparing individual employees in the work group, in terms of personal qualities or deficiencies and the requirements of their respective jobs. More Abruptly it can be said that, Performance management can be defined as a strategic and integrated approach to delivering sustained success to organizations by improving the performance of the human capital and by developing the capabilities of teams and individuals within that organization (Armstrong and Baron, 2000). The process of performance management therefore focuses not only with WHAT is produced but, also HOW it is produced. It seeks to ensure that what has been produced is in line with the organizations needs and these products have been produced in line with the organizations way of doing things. Performance management can be achieved through many different ways. These include performance appraisal system and coaching. Performance appraisal system can be described as a fairly old system of measuring employees performance that has been in use in many organizations. However, Performance appraisal has not brought in the amount of positive results that was expected of it. Armstrong and Mulis (1994:86) quoted one manager describing performance appraisal as a dishonest annual ritual. The question that arises then is: If Managers (the custodians of the system) do not have confidence in their own system, what more employees (who happen to be victims of the system)? The meaning of the word appraisal is to fix a price or value for something. This is used in finance in terms such as project appraisal or financial appraisal where a value is attached to a project. Similarly performance appraisal is a process in which one values the employee contribution and worth to the organization. Performance appraisal can be defined as a system of measuring employees performance relative to the assigned or agreed objectives. The process starts with the supervisor and or with the subordinate agreeing on specific objectives that need to be met on an agreed time period. The objectives that are used in the Performance appraisal stem from the main organizational objectives that are reduced to Departmental goals and now to individual goals.

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The performance appraisal system has to be transparent and the employee should be taken into full confidence. In many cases employees themselves are given a chance to conduct a self-appraisal. Performance appraisal is a case of joint problem solving by the organization and the employee. However the organization must also take care of future potential and not get bogged down by current performance. Normally the immediate supervisor does the appraisal. Some organizations also have a peer group performance appraisal where colleagues rate the performance. The HR person must also ensure that line managers are properly trained for carrying out the appraisal including interviewing techniques and on how to give feedback. The managers must also be trained to look at the cases objectively outside of their personal opinion of the candidate. Therefore at end it would be right to say that, Performance appraisal is the process of obtaining, analyzing and recording information about the relative worth of an employee. The focus of the performance appraisal is measuring and improving the actual performance of the employee and also the future potential of the employee. Its aim is to measure what an employee does. According to Flippo, a prominent personality in the field of Human resources, "performance appraisal is the systematic, periodic and an impartial rating of an employees 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. Organizations exist to achieve goals. Goals are only met when individual employees efforts matches with policy of the organization and thus bringing out success and effectiveness. The assessment of how unsuccessful employees have been at meeting their individual goals therefore becomes a critical part of HRM and here comes Performance Appraisal System. Performance Appraisal is an important component of the information and control system. In todays flexible organizations, performance evaluations provide an effective way for managers to clarify performance goals and standards to enhance future individual performance. Thus, the purpose of performance appraisal is to improve the organizations performance through the enhanced performance of individuals. The performance appraisal system: Is an organizational necessity.

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Is based on well defined objective criteria. Is based on careful job analysis. Uses only job related criteria. Is supported by adequate studies. Is applied by trained qualified raters. Is applied objectively throughout the organization. Can be shown non discriminatory as defined by law.

By focusing the attention on performance, performance appraisal goes to the heart of personnel management and reflects the management's interest in the progress of the employees. OBJECTIVE OF PERFORMANCE APPRAISAL:There are mainly two purposes for which performance appraisal is used by an organization:1)To improve the work performance of employees by helping them realize and use their full potential in carrying out the firms missions; and (2) To provide information to employees for use in making work related decisions, More specifically, appraisals serve the following purposes. 1) Appraisals generate information to support administrative decisions. Promotions transfers and reassignments, demotions and terminations are action based at least in part on performance. 2) Appraisals provide feedback to employees and thereby serve as vehicle for personal or career development because feedback provides: Reassurance that they are contributing and doing the right thing Awareness of the impact on the desired results A measure of the adequacy of performance (quality, quantity, speed etc.) Recognition of the importance and value of their performance.

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3) Once the development needs of employees are identified appraisals can help establish objectives for training programmes. Thus evaluations provide a basis for changing performance plans, including objectives and standards of behaviors as business plans and conditions change. 4) As a result of proper specifications of performance levels, appraisals can help diagnose organizational problems. They do so by identifying training needs and the knowledge, abilities, and other characteristics to consider in hiring, and they also provide a basis for distinguishing between, effective and ineffective performers. 5) Appraisals are used as criteria in test evaluations. The rationale for differential treatment of employees needs to be consistent with companys values, philosophy and strategy. It also needs to be balanced with the desire for collaboration, rather than competition and conflict, sought in TQM.

SCOPE AND IMPORTANCE OF THE STUDY

To help in understanding more about role of performance appraisal and become clear about their functions; To help in understanding functions of performance appraisal in terms of employees strengths and weakness with respect to their performance in the organization; To understand how it helps in identifying the developmental needs of employees, given their role and function; To analyze its impact on industrial relationships; To find out what tools it implies for bridging the communication gap between employees and their supervisors. To study its role in creating a positive and healthy climate in the industry; and To understand its decision making power regarding employees.

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HUMAN RESOUCES MANAGEMENT REVIEW IN SAIL Human Resource is one of the greatest assets for the Company. SAIL has believed in the ideology of achieving excellence through investing in people and technology simultaneously. Company continues to work for the development and realization of best potential of its people. To promote motivational climate and achieve growth, thrust on optimal utilization of manpower with focus on improvement in productivity continued. Efforts were made for promoting better employee

participation. Steps were taken to make sure a smooth transition for upcoming production facilities and preparations to work with a leaner workforce for enhanced productivity. HR initiative kept focus on building teams with wider spectrum with reference to skill and knowledge. During the fiscal 2009-10, all the five integrated steel plants recorded their best ever labor productivity. An overall labor productivity of 226 Tones/man/year was achieved by SAIL, with Bhilai Steel Plant touching a new peak at 340 T/man/year in Jan'10.Overall manpower figure at the year end was 1, 16,950 (after 1585 employees of BRL joined SAIL family as a part of merger of BRL with SAIL) comprising 15,704 executives and1, 01,246 non-executives; registering a net reduction of 5930, achieved by way of judicious recruitments, redeployment strategies and multi-skilling. Thrust continued on developing employees for a better role. Over 60 executives at GM/DGM level were nominated to participate in Specialized/Advance management programmes, conducted by Premier Management Institutes for exposure to best business practices and

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leadership development. Overall, nearly 46,180 employees were trained during the year on different contemporary technical and managerial

modules; achieving level-1 of Performance Evaluation Parameter under MOU with Government of India for the financial year 2009-10.

Company profile
Steel Authority of India Limited (SAIL) is the leading steel-making company in India. It is a fully integrated iron and steel maker, producing both basic and special steels for domestic construction, engineering, power, railway, automotive and defense industries and for sale in export markets. SAIL is also among the five Maharatnas of the country's Central Public Sector Enterprises.

SAIL manufactures and sells a broad range of steel products, including hot and cold rolled sheets and coils, galvanized sheets, electrical sheets, structurals, railway products, plates, bars and rods, stainless steel and other alloy steels. SAIL produces iron and steel at five integrated plants and three special steel plants, located principally in the eastern and central regions of India and situated close to domestic

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sources of raw materials, including the Company's iron ore, limestone and dolomite mines. The company has the distinction of being Indias second largest producer of iron ore and of having the countrys second largest mines network. This gives SAIL a competitive edge in terms of captive availability of iron ore, limestone, and dolomite which are inputs for steel making. SAIL's wide range of long and flat steel products is much in demand in the domestic as well as the international market. This vital responsibility is carried out by SAIL's own Central Marketing Organization (CMO) that transacts business through its network of 37 Branch Sales Offices spread across the four regions, 25 Departmental Warehouses, 42 Consignment Agents and 27 Customer Contact Offices. CMOs domestic marketing effort is supplemented by its ever widening network of rural dealers who meet the demands of the smallest customers in the remotest corners of the country. With the total number of dealers over 2000, SAIL's wide marketing spread ensures availability of quality steel in virtually all the districts of the country. SAIL's International Trade Division ( ITD), in New Delhi- an ISO 9001:2000 accredited unit of CMO, undertakes exports of Mild Steel products and Pig Iron from SAILs five integrated steel plants. With technical and managerial expertise and know-how in steel making gained over four decades, SAIL's Consultancy Division (SAILCON) at New Delhi offers services and consultancy to clients world-wide. SAIL has a well-equipped Research and Development Centre for Iron and Steel (RDCIS) at Ranchi which helps to produce quality steel and develop new technologies for the steel industry. Besides, SAIL has its

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own

in-house

Centre

for

Engineering

and

Technology

(CET),

Management Training Institute (MTI) and Safety Organisation at Ranchi. Our captive mines are under the control of the Raw Materials Division in Kolkata. The Environment Management Division and Growth Division of SAIL operate from their headquarters in Kolkata. Almost all our plants and major units are ISO Certified.

Major Units
Integrated Steel Plants

Bhilai Steel Plant (BSP) in Chhattisgarh Durgapur Steel Plant (DSP) in West Bengal Rourkela Steel Plant (RSP) in Orissa Bokaro Steel Plant (BSL) in Jharkhand IISCO Steel Plant (ISP) in West Bengal

Special Steel Plants

Alloy Steels Plants (ASP) in West Bengal Salem Steel Plant (SSP) in Tamil Nadu Visvesvaraya Iron and Steel Plant (VISL) in Karnataka

Ferro Alloy Plant

Chandrapur Ferro Alloy Plant

Joint Ventures

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NTPC SAIL Power Company Pvt. Limited (NSPCL): A 50:50 joint venture between Steel Authority of India Ltd (SAIL) and National Thermal Power Corporation Ltd (NTPC Ltd); manages SAILs captive power plants at Rourkela, Durgapur and Bhilai with a combined capacity of 814 megawatts (MW).

Bokaro Power Supply Company Pvt. Limited (BPSCL): -This 50:50 joint venture between SAIL and the Damodar Valley Corporation (DVC) is managing the 302-MW power generating station and 660 tonnes per hour steam generation facilities at Bokaro Steel Plant.

Mjunction Services Limited:- A 50:50 joint venture between SAIL and Tata Steel; promotes e-commerce activities in steel and related areas. Its newly added services include e-assets sales, events & conferences, coal sales & logistics, publications, etc.

SAIL-Bansal Service Centre Limited: A joint venture with BMW Industries Ltd. on 40:60 bases for a service centre at Bokaro with the objective of adding value to steel.

Bhilai JP Cement Limited: A joint venture company with Jaiprakash Associates Ltd on 26:74 basis to set up a 2.2 million tonne (MT) slag-based cement plant at Bhilai.

Bokaro JP Cement Limited: Another joint venture company with Jaiprakash Associates Ltd on 26:74 basis to set up a 2.1 MT slagbased cement plant at Bokaro.

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SAIL & MOIL Ferro Alloys (Pvt.) Limited : A joint venture company with Manganese Ore (India) Ltd on 50:50 basis to produce Ferro-manganese and silicon-manganese required in production of steel.

S & T Mining Company Pvt. Limited: A 50:50 joint venture company with Tata Steel for joint acquisition & development of mineral deposits; carrying out mining of minerals including exploration, development, mining and beneficiation of identified coking coal blocks.

International Coal Ventures Private Limited:- A joint venture company/SPV promoted by five central PSUs, viz. SAIL, CIL, RINL, NMDC and NTPC (with respectively 28.7%, 28.7%, 14.3%, 14.3% and 14.3% shareholding) aiming to acquire stake in coal mines/blocks/companies overseas for securing coking and thermal coal supplies.

SAIL SCI Shipping Pvt. Limited: A 50:50 joint venture with Shipping Corporation of India for provision of various shipping and related services to SAIL for importing of coking coal and other bulk materials and other shipping-related business.

SAIL RITES Bengal Wagon Industry Pvt. Limited: A 50:50 joint venture with RITES to manufacture, sell, market, distribute and export railway wagons, including high-end specialised wagons, wagon prototypes, fabricated components/parts of railway

vehicles, rehabilitation of industrial locomotives, etc., for the

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domestic market.

SAIL SCL Limited: A 50:50 JV with Government of Kerala where SAIL has management control to revive the existing facilities at Steel Complex Ltd, Calicut and also to set up, develop and manage a TMT rolling mill of 65,000 MT capacity along with balancing facilities and auxiliaries.

Ownership and Management:-the Government of India owns about 86% of SAIL's equity and retains voting control of the Company. However, SAIL, by virtue of its Maharatna status, enjoys significant operational and financial autonomy

SWOT Analysis OF (SAIL Steel Authority of India Ltd.)

A SWOT analysis must first start with defining a desired end state or objective. A SWOT analysis may be incorporated into the strategic planning model. An example of a strategic planning technique that incorporates an objective-driven SWOT analysis is Strategic Creative Analysis (SCAN). Strategic Planning, including SWOT and SCAN analysis, has been the subject of much research.
Strengths:-

attributes of the person or company that is helpful to achieving the objective.

Weaknesses:-

attributes of the person or company that is harmful to achieving the objective.

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external conditions that is helpful to achieving the

objective.
Threats:-

external conditions which could do damage to the businesses performance. Identification of SWOTs is essential because subsequent steps in the process of planning for achievement of the selected objective may be derived from the SWOTs. First, the decision makers have to determine whether the objective is attainable, given the SWOTs. If the objective is NOT attainable a different objective must be selected and the process repeated. The SWOT analysis is often used in academia to highlight and identify strengths, weaknesses, opportunities and threats. It is particularly helpful in identifying areas for development. However, SWOT analysis is just one method of categorization and has its own weaknesses. For example, it may tend to persuade companies to compile lists rather than think about what is actually important in achieving objectives. It also presents the resulting lists uncritically and without clear prioritization so that, for example, weak opportunities may appear to balance strong threats. It is prudent not to eliminate too quickly any candidate SWOT entry. The importance of individual SWOTs will be revealed by the value of the strategies it generates. A SWOT item that produces valuable strategies is important. A SWOT item that generates no strategies is not important. The usefulness of SWOT analysis is not limited to profit-seeking organizations. SWOT analysis may be used in any decision-making situation when a desired end-state (objective) has been defined. Examples include: non-profit organizations, governmental units, and individuals. SWOT analysis may also be used in pre-crisis planning and preventive crisis management. SWOT analysis may also be used in creating a recommendation during a viability study.

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SAIL (Steel Authority of India)

Steel Authority of India Limited (SAIL) is one of the largest steel makers in India. With a turnover of Rs. 45,555 crore, the company is among the top five highest profits earning corporate of the country. It is a public sector undertaking wholly owned by Government of India and acts like an operating company. Incorporated on January 24, 1973, SAIL has more than 131,910 employees. The company's current chairman is S.K. Roongta. With an annual production of 13.5 million metric tons, SAIL is the 16th largest steel producer in the world. Major plants owned by SAIL are located at Bhilai, Bokaro, Durgapur, Rourkela, Burnpur (near Asansol) and Salem. SAIL is a public sector company, owned and operated by the Government of India. According to a recent survey, SAIL is one of India's fastest growing Public Sector Units. The Swot Analysis for SAIL can be carried out in the following manner:

STRENGTHS: Staffing is a big strength for SAIL as being a Govt. venture it is looked upon for generating and offering employment Customer base is another major strength for SAIL as it offers steel at subsidized rates and hence caters to high volume of clients Another strength for SAIL is its Market position which is on a very successful level and thus there is no hesitation in its clients Financial Resources also acts as strength as it can use Govt funds for ventures. Sales Channels also is strength as it uses all possible channels for promotion and Sales. Strength is the (product Steel) is core in nature and related to almost all development and infrastructure activities.

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Profitability is another strength as SAIL records astounding profit figures in spite of providing social benefit and subsidies to its clients.

WEAKNESS: Staff also posses as a weakness in a certain way as SAIL being a Govt. venture, targets and workload are not tight and job security leads to staff not being fully productive Another weakness is that higher profit margins are possible but not allowed since being a Govt venture. Competitive Vulnerability is another weakness as competitors include private players with better quality manpower, strategies and policies. Another weakness is production of a single vertical (Steel) and no diversification.

Also a major Weakness is completely answerable to the Central Govt. and hence exposed to corruption and mismanagement

OPPORTUNITIES: However SAIL has certain opportunities as it is affiliated to the Central Govt. of India and hence expansion and growth is possible SAIL also can adopt globalization with ease using Govt. support Also SAIL being financially sound can undertake merger and acquisition projects with weaker . It can also involve in production of forward integration products and by-products apart from its core product (Steel) with the help of its healthy brand image.

THREATS: Threats would include change in Govt Policies and Economy trend which can have a direct impact on the functioning of SAIL.

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Also emerging and existing private sector competitors who can steal market share. Also late implementation of technology and modern machinery as compared to counterparts can pose a potential threat.

Apart from the above major threats, labour turnover can also cause problems due to existence of higher paying jobs with better benefits in the sector.

PERFORMANCE APPRAISAL - PROCESS MAP

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1). 360 Degree Appraisal Method 2). Rating Scale Method 3). Management by Objective Method Under the 360 Degree appraisal method the employee is rated from all angles i.e., by the superiors, subordinates, peers, suppliers, distributors, customers and clients. Under the Management by Objective method the employee goals are set mutually

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by the employee's and the management. And the employees are rated based on the accomplishment of these goals. Under the Rating Scale method each employee trait or characteristic is rated on a scale that usually has several points ranging from "poor" to "excellent" (or some similar arrangement).The traits assessed on these scales include employee attributes such as work quality, cooperation, initiative, punctuality and technical competence, etc. The selected traits should be in some way relevant to the appraisers job.

360 APPRAISAL AND FEEDBACK:The 360 degree appraisal involves rating of an employee or manager by everyone above, alongside and below him. Corporates are using this tool to find out truths about their managers. Although deployed mostly as a fact-finding technique, 360 appraisals are also used to design promotion and reward system in the organization.

Concept of 360 Appraisal

According to Milliman and others, 360-degree appraisal is the process of systematically gathering data on a persons skills, abilities and behaviors from a variety of sources the manager, peers, subordinates and even customers and clients. Thus, appraisal of an employee is done by his superior, his peers, his subordinates and clients or outsiders with whom he interacts in the course of his job performance. In 360-degree appraisal, besides appraising the performance of the assesses, his other attributes such as talents, behavior, values, and technical capabilities are also appraised. Besides the employee himself, superior, subordinates and peers play an important role in the appraisal. Structured questionnaires are used to collect responses about the employee from his superiors, peers and subordinates. Several parameters relating to performance and behavior are used in the questionnaires. Each manager is assessed by a minimum of fifteen colleagues, at least two of them being his bosses, four of them peer, and six of them subordinates. Even the important customers or clients of the firm may also be requested to give their assessment of the concerned employee. The responses are presented collectively to the assesses in the form of charts and graphs. Comments and interpretations are presented later. Counseling sessions are arranged with the employee to remove the weaknesses identified in the 360 degree assessment.

Merits of 360 Appraisal

The merits of 360 appraisal are as under: (i) The 360 degree appraisal leads to greater self-awareness of those appraised. It reveals strengths and weaknesses in their working styles. (ii) The gap between self assessment and the views of ones colleagues of peer group in reduced. (iii) It facilitates empowerment of subordinates who get a say in the appraisal of their bosses.

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(iv) Inflexible managers are forced to initiate self-change. (v) Facts about organizational culture and ambience are brought to light by the multiple appraisals. . Guidelines for Better Use of 360 Appraisal The use of multisource appraisal can be effective if the following guidelines are followed: (i) Involve people. Ask them who should serve as raters, and give them an opportunity to review and interpret the results. This will strengthen their commitment to both the overall process and the specific decisions. (ii) Ensure that relevant data are being collected. Focus on behaviors and outcomes that raters are capable of observing and are competent to evaluate. (iii) Ensure that no single rater can dramatically affect the outcome. Use a large enough sample or eliminate the highest and lowest scores to ensure that no one rater can skew the data. (iv)Train raters in what and how to observe. The better people understand what They look for and how to record critical incidents (specific things the person said And did that can be used as examples to support their ratings, and better the quality of the information that will be collected. (v) Ask raters to support their evaluations. Whenever possible, raters should discuss their observations and evaluations with other raters. These discussions should trigger thoughts and combat selective memory. Raters should also be required to provide a rationale for their rating to other raters. This would prevent people from using the process to act on personal grudges. (vi)Move slowly and start small. Any organization considering using 360 feedbacks in the appraisal process should begin by using it for development purpose only and then gradually to make it a part of appraisal system. Even then, the focus should be on the goal-setting portion of the appraisal. People need to get comfortable with the idea of multisource feedback as a development tool before they can accept it as part of the formal performance management process. A lot of organizations seem to be hurrying to integrate 360 feedbacks into the human resource management system. Multisource feedback really does have the potential to enhance human resource management system. However, 360 feedback wont fix a system that does not work. (vii) Develop a culture that supports open feedback. Not surprisingly, 360 feedback works best in companies where the environment is participatory rather than authoritarian, where giving and receiving feedback are the norm and are seen as valuable sources of information. If the current system (where only the supervisor does the appraisal) is not working due to lack of straight talk and hesitancy to give direct feedback, it is essential to introduce openness in the organization.

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(viii) Clear and agreed on performance measures and behaviors. When 360 feedback is used for development only, the organization may be able to settle the list of behaviors and skills that have reasonable face validity and general support: coaching or team building, for instance. However, when the feedback is being used to determine performance ratings, the result and behavior for which people are held accountable must be clear, unambiguous and specific. (ix)The users must support the system and be willing to invest the time required to make it work. The introduction of 360 feedback makes an already time Intensive appraisal process even more demanding. It means more data to collect and more information to process for the additional feedback. (x) Sound feedback process. While the way the data are collected and presented are always important, two aspects of sound 360 feedback procedure are particularly relevant when the data are used for appraisal purpose: the validity and reliability of the practices for which people will be measured and the confidentiality of the raters. Elements of 360 Appraisal Program The elements of 360 appraisal program are as follows: (i) Appraisal by Superior/ Boss. This is the most important element of the 360 degree appraisal. Here the focus is to provide constructive feedback on employees performance and his development needs. It is the responsibility of the superior to ensure that employee sets goals not only in the area of business performance but also in the areas that are vital to the organization. These are called corporate thrust areas and may include relationship management, safety and quality development. If the working style of the employee is a concern area and needs improvement for enhancing effectiveness then goal may be set for style of functioning such as, from short-term to long-term orientation. It is expected of the superior to put career aspirations of the employee in proper perspective. Firstly, superior must communicate to the employee in a clear way what the organization plans for the employee. Secondly, if the employee has unrealistic aspirations, then also it is superiors responsibility to share with the employee the realistic picture given his/ her strengths, development areas, experience, qualifications, and the organizations ability to provide growth. This is how the superiors appraisal has a very significant role to play. (ii) Appraisal by the Peer Group. The peers play an important role in the life of an employee in the organization. The can also provide a deep insight into the personality make up, attitude and style of working of the employee. For better results, it is essential to select the right peers for the purpose of appraisal. They must include peers both from within the department as well as from the other departments, which are directly connected with the working of employees department. The concept of internal customers comes handy here. Three to five internal customers should normally be chosen for peer appraisal. In order to achieve the purpose of 360 appraisal, the peer group appraisal must strive to get the feedback on (a) employees working style, (b) sensitivity towards

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others, (c) spirit of co-operation and collaboration, and (d) ability to work as a team member. (iii) Appraisal by the Subordinates. Another distinctive feature of 360 appraisal is the role of subordinates in appraisal. It signifies two things. Firstly, it is a clear expression from the organization that it encourages openness and that feedback is a two-way process. Secondly, it is a systemic recognition of the fact that an employees subordinates do play a vital role in his appraisal. Thus, the purpose of subordinates appraisal is to get first hand assessment of how the subordinates perceive their superior to be in terms of: (a) delegation of authority, (b) Guiding and training of subordinate, (c) motivation of subordinates, (d) team building, etc. Upward appraisal provides an opportunity to the subordinates to give feedback to their superior on the kind of things they would like him/ her to continue doing (status quo), things they would like him/ her to stop doing (areas for corrective action), things they would like him/ her to start doing (areas for new initiatives). (iv)Self Appraisal. Any program of 360 appraisal would not be complete without self appraisal by the employee whose performance is being appraised. Self appraisal facilitates the employee to identify his/ her strengths and weaknesses and provides an opportunity to assess the performance. In a well established system, employees use the self appraisal very effectively and organizations also find that employees often are their own strongest critics and display very high degree of objectivity. Self appraisal also provides an opportunity to the employee to express his career moves for the future. However, this is only for gathering information and that under the given organizational constraints, it may not be possible to provide the career progression desired by the employee. Nevertheless, it is in the organizations interest to at least know on a first hand basis the aspirations of its employees. .

TRENDS IN PERFORMANCE APPRAISAL SYSTEM

Performance appraisal in its traditional from known as ACR-Annual Confidential Report is often misused than used. Performance appraisal has now been recognized as a HRD function. In the last decade many organizations have reviewed and changed their managerial appraisal systems. 1) There is a trend away from the composite appraisals with multiple objectives (e.g. performance planning, development rewards and promotions)to separate systems for different systems for different clusters of objectives. 2) There is a move away from isolated appraisal system to the business linked one . 3) There is shift away from closed confidential type to open dialogue and discussions based system. 4) There is a movement quantitative (pseudo objective) to qualitative (interactive, improvement and process oriented) system.

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5) There is a movement away from boss assessed feedback to 360-degrees feedback involving customers, peers, team members, subordinates etc. in addition to supervisors. 6) There is also a trend away from elaborate systems to simple ones. 7) There is a shift from standard systems to flexible and group specific ones. 8) There is a movement from result oriented systems to process oriented system. 9) There is a movement from the assessment of individual performance to the development of team performance. 10) There is also a movement from complacency to experimentation through continuous research change. Performance appraisal refers to the assessment of an employees actual performance, behavior on jobs, and his or her potential for future performance. Appraisal has several objectives but the main purposes are to assess training needs, to effect promotions, and to give pay increases. Appraisal of performance proceeds in a set pattern. The steps involved are defining appraisal objectives, establishing job expectations, designing the appraisal programmed, conducting performance interview, and using appraisal data for different HR activities. Two important contemporary techniques of performance appraisal include 360 appraisal and goal setting approach to appraisal also known as Managing by Objectives. However, performance appraisal system also serves to be the backbone of any industry in the corporate world and since the project report focuses on the role played by performance appraisal in industrial establishment so review of research is done by also analyzing following secondary data.

FINDINGS AND ANALYSIS:The main objective of this study is to analyses the role of performance appraisal and system implementation in Steel Authority of India Industry. Since the research is empirical in nature thats why following aspects of various organization structure and design of particular industry have been covered.

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Key Observation (s) at SAIL

In the present performance appraisal system of SAIL we found the following loop holes: If the appraisee has good terms with the reviewing officer and does not have a smooth relationship with the reporting officer, in such case the reporting officer is sometimes forced by the reviewing officer to give better score to the appraisee.

SURVEY FINDINGS
In this section, basic data for the number companies constituting steel in industry is presented on various attributes of performance appraisal. Frequency and frequency percent scores were computed for each company and thus it enlighten the following points :Promotions were and known to most of the top and senior management while middle and lower management were a bit not clear about it. This could be attributed to the fact that senior and top management were more involved in decision making and policy formulation than are the middle and lower management. At the lower levels of the organization, performance can be quantified, and the managers are made accountable at the higher echelons the tasks are too complex and therefore cannot be assessed on the basis of quantified performance Most of the managers feel that the mechanism for potential appraisal is not adequate. The industry believed that self appraisal is the best for managers and above. To improve interpersonal communication and behavior assessment by peers and subordinates is essential. The performance of the employees is not regularly monitor and the required feedback is provided to the subordinates from time to time. The appraisals are conducted at fixed intervals. The industry believes in using appraisal for rewarding and increments. It would not be wrong to say that interpersonal relations and personal biases (i.e. liking and disliking) influence the appraisals in the industry

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SUGGESTION &RECOMMENDATIONS
1. The economic indicators are all favorable for Growth, temporally slump is ephemeral. 2. Indian steel industry exudes optimism , thus, more stress relieving packages should be offered to the mentally stressed staff. 3. Investment in infrastructure is crucial to step up demand for steel , therefore, in this respect the HR Dept should attempt to obtain the maximum agreement of Managers in respect of needs and objectives and purpose of the systems. 4. New technologies to use indigenous natural resources would have to be developed thorough expert person performing their roles efficiently in personnel management. 5. The industry should try to avoid employee resistance, which is associated with change worlds true change follows instance. This for all kinds of systems be it Performance Appraisal. 6. Overtime should be taken care of at time of performance appraisal, which would motivate the employees to perform better for longer hours. 7. Performance appraisal should be after at proper span of time .

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LIMITATIONS
The project report carries with it few limitations, on which the accuracy of the text written will depend. This study is cross-sectional and data were collected over two time periods but are still perceptive. Cross-sectional data might create problems with respect to causality. The first and foremost limitation is regarding the sources of information. The information contained has been obtained from sources believed to be reliable and in good faith, but which may not be verified independently. Using several statistical tools derives the estimates. Hence the findings obviously carry all the limitations of the statistical tools used. Same sets of data from different sources are different. Since not all the data are available from a single source, an attempt has been made to standardize the data wherever required, which is essential to maintain uniformity through out the project. Many of the US studies have used multiple criteria for performance, although it is not sure how well those would transfer to the Asian context. Not using multiple performance measures may create further limitation in the study. The data set is restricted to observations on one very specific type of manufacturing production process. This narrow focus eliminates many sources of heterogeneity that confound productivity comparisons in more aggregate data and in more heterogeneous samples. Finally, this study did not find evidence of the configuration argument and did not test the contingency argument, but could find evidence in the universalistic or the best practice

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perspective. One way of explaining this might be that due to the turbulent and hypercompetitive environment, firms are primarily supportive of innovative, adaptive nature of high-involvement work systems. In other words, there may be some restriction in range with regard to organizational environments that somehow undercut this studys ability to provide a full test of the contingency perspective.

CONCLUSION
CONCLUSIONS
1. This industry proves that a major amount of work towards developing an effective and efficient performance appraisal system has not been accomplished to the fullest. 2. It seems that the industry is genuinely interested in improving the efficiency and utility of performance appraisal system to succeed in todays dynamic environment; 3. Systems of innovative HRM practices have large effects on production workers' performance, while changes in individual employment practices have little or no effect. Outward Orientation Performance Appraisal System The appraisal system should be more sensitive and responsive to current competitive environment. This is possible through making the industry : Quality conscious in products and services to match international standards. Customer oriented (internally as well as externally) Cost effective Technology oriented Focused towards collaboration and teamwork People oriented Focused towards performance standards Focused towards values and culture that would help unbottle hidden talent. In achieving the above, the PA system have a catalytic role to play. PERIODIC PERFORMANCE REVIEW AND PLANNING: There should be some aspect in the PA forms, which deals with the effect of Internal Influences, organizational influences and external influences on performance of employee to make the PA system more sensitive to changes. Increase awareness of company goals in order to integrate company and individual expectations. Conducting training workshops for appraisers to remove biases and errors in appraisal. Increasing transparency and open communication and minimizing confidentiality in performance review discussions.

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The work done towards modifying and developing performance appraisal systems, time to time should be continued. Integrating TQM into Performance Appraisal Individual rewards should be declined with the PA system. The focus should shift to team rewards. To recognize individual excellence, the team rewards. To recognize individual excellence, the team should recommend rewards to tone up motivation levels in the entire team. Continuous feedback and transparency in every system Focus on customer delight, both internal and external Linkage with Rewards Good performers should be recognized and rewarded, whereas weak performers need to be encouraged to become better performers. PA systems when liked with individual rewards and promotions create more problems than they help in motivating people. They encourage fewer employees and discourage more. They do not develop the team spirit but rather enhance interpersonal comparisons and power politics. The focus should be shifted from rewarding the performance of few to development of performance of many. However there is also a need for recognition and rewarding good work. Alternative systems of rewarding with multiple reward/recognition mechanism are needed. But these systems should be separated from other systems (like career planning). Role of HRD HRD should develop relevant competencies and work through empowering the line managers. Development of subordinates and teams should be key function of line managers. HRD should facilitate the development of behavioral, managerial and technical (multi functional) competencies in line managers. Role analysis should find a place in Steel Industry. Role directories should be published with key functions for each role. IMPLICATION OF THE PROJECT In a simple way performance appraisal is meant to be an exercise to value a estimate what a person has done and how has he done. The nature of Performance appraisal and its effectiveness depends a great deal on how human resources in the industry are viewed and treated. People are to be treated as resources of the industry. Unlike the other resources, the human resources have the capability of expanding to unlimited extents with proper investment in human capabilities. Therefore, an organization interested in developing the capabilities of its employees, should understand the nature and capabilities required to perform different functions as well as the dynamics underlying the development of these capabilities in an organizational content. These capabilities can be considered to fall under four categories. They are:-

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(i) Technical capabilities (ii) Managerial capabilities (iii) Behavioral (human) capabilities (iv) Conceptual capabilities The extents to which the various capabilities are required for the performance of the job differ from level to level in the organizational hierarchy.

BIBLIOGRAPHY

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