Performance Appraisal has become a buzzword in management parlance. In the changed business environment the importance of performance appraisal of the employees has became paramount owing to the prevalence of cut through competition amongst the organization. Though the appraisal system and the methods there to have changed over a period of time, most of the government run organization have not yet been found to be following the new methods of appraisal. Hence there is a debate on the need for the paradigm shift in the system. The present project is an attempt to address the new trends an appraisal system. The study was conducted in a power distribution company in odisha i.e. CESU.
1. SUMMER INTERNSHIP project REPORT On
Performance Appraisal System
At
CENTRAL ELECTRICITY SUPPLY UTILITY OF ODISHA
Submitted In partial fulfillment of the requirements for the award
of the degree of Master of Business Administration under, BPUT
ODISHA
By
Raja nandini badu
Regd: 1506278048
Under the guidance of
External guide internal guide
Mrs. Atasi Samal dr. simanchalAdas
Asst.manager (HR) Professor (HR)
CESU, BBSR GIM, BBSR
2. GLOBAL INSTITUTE OF MANAGEMENT
Declaration
I hereby solemnly declare that the project work entitled
“Performance Appraisal System” is based on my own
work carried out during my summer training under the
supervision and guidance of Mrs. Atasi Samal,
Asst.Manager (HR).
I assert that the statement made and conclusions drawn
are an outcome of the project work. The project report is
an original one and doesn’t contain any part of any work
that has been submitted for the award of any other
certificate in any other university to the best of my
knowledge and belief.
Signature:
3. Name:
Date:
Preface
Summer internship program(SIP)is the most vital part
of a MBA course, both as a link between theory and
actual industrial practices as well as an opportunity for
hands on experience in corporate environment .I
therefore, consider myself fortunateto receive the training
in an esteemed organization CENTRAL
ELECTRICITY SUPPLY UTILITY(CESU).Yet the
opportunity could not have been utilized without the
guidance and support of many individuals who although
held varied position ,but were equally instrument for
although completion of my summer internship program.
Signature:
4. Name:
Date:
Acknowledgement
I express my sincere, gratitude to the Sr.GM (HR), Head
Office, CESU, BBSR for giving me permission to undergo
summer internship under this esteemed organization.
I also express my sincere thanks to mrs.Atasi Samal,
Asst.Manager (HR), CESU, BBSR. Particularly for her
cooperation and help during my project work, without which
this couldn’t have been possible.
I would like to express my sincere and special gratitude to
my teacher Dr.Simanchala Das, GIM, BBSR for his guidance
for my project work.
I am very much grateful to GIM BBSR for providing me an
opportunity to undertake a project work entitled “Performance
Appraisal System at CESU.
5. I extend my gratitude to all my friends for their
encouragement, support, guidance and assistance for preparing
the project report.
Name:
Rollno:
Contents
Executive summary
Chapter-1: Introduction
Objective of the study
Scope of the study
Research methodology
Limitation of the study
Relevance of the study
Chapter-2:COMPANY PROFILE
History of the company
Vision, Mission, Objective
Organizational structure
Chapter-3:Performance Appraisal :A Conceptual Framework
Chapter-4:Performance Appraisal System at CESU
Chapter-5:Data Analysis & Interpretation
Data analysis
Interpretation
6. Major Findings
Chapter-6: Conclusion and Suggestion
Conclusion
Suggestion
References
Appendix:Quesionnaire
EXECUTIVE SUMMERY
Performance Appraisal has become a buzzword in management parlance. In the
changed business environment the importance of performance appraisal of the
employees has became paramount owing to the prevalence of cut through
competition amongst the organization. Though the appraisal system and the
methods there to have changed over a period of time, most of the government run
organization have not yet been found to be following the new methods of
appraisal. Hence there is a debate on the need for the paradigm shift in the system.
The present project is an attempt to address the new trends an appraisal system.
The study was conducted in a power distribution company in odisha i.e. CESU.
The main objective of the study was to review the current performance appraisal
system of the employees at CESU and to suggest majors to make the system more
effective. The findings suggest that there is a lot of gap between theory and
practice so far as implementation is concern. The conclusion suggests that the
managers need to be counselors, helpers and teachers. But in contrast, no
organization goes for a detailed appraisal and the results are not communicated
7. to the employees. Even if some actions are taken its impact is negligible, as a
result most of the employees consider it a wasteful paperwork. The suggestion is
the performance appraisal system in CESU specifically in case of Non-executive
employees should be more specific and transparent.
8. INTRODUCTION
Performance Appraisal is the process of identifying, measuring and
developing human performance in organizations and tries to:
Give feedback to employees to improve subsequent performance.
Document criteria used to allocate organizational rewards.
Form a basis for personneldecisions-salary(merit) increases disciplinary
action, etc.
Provide the opportunity for organizational diagnosis and development.
Facilitate communication between employee and administrator.
9. “Performance Appraisal System: as one of the vital aspects of Human
ResourcesDevelopment for all the employees of the company to enable
them to:
Clearly understand their roles in the organization.
Perform effectively in the role against well define objectives.
Develop their skills, knowledge and capabilities both to their and the
organizations advantage and
Seek and achieve a growth of their career in the organization.
1. Objective of the study:
To examine the effectiveness of the performance appraisal system
adopted in CESU.
To analyze and evaluate the performance appraisal system in CESU.
To evaluate the methods adopted for performance Appraisal of the
employee in CESU.
To find out the relationship between the appraise & the appraiser.
To analyze the opinions of the employees and supervisors on the
performance appraisal system in CESU.
2. Scope of the study:
Personnel management is the responsibility of all those who manage
people. It is that part of management, which is concerned with people at
work and their relationship within an enterprise. It applies not only to
industry and commerce but all field of employment. Personal management
is the management, which is concerned with effective utilization of human
energies in the accomplishment of the purpose of the organization.
10. The study was undertaken to know about the organizational structure
of CESU along with their day function. Following departments of the
corporate office of CESU at Bhubaneswar were covered during the study.
Human Resource Department
Public Relation Department
Finance Department
Legal Wing
O&M Department
Safety Department
Store Department
3. Research methodology:
3.1 Sample Design
The simple random sampling technique was employed to select the sample.
As CESU is a vast organization spreading over in nine districts of odisha, it
was not possible to go everywhere. Hence, the sample included only the
representative employees of different categories, supervising authorities of
different disciplines. Care has been taken to give equal representation to all
grades of employees & supervisors.
3.2 Source Of Data:
The data for the study were collected mainly from the two source i.e.
11. Primary
Secondary
The primary data are the basis but important source, which have been
collected by meeting various employees, executives and other supporting
staff of the CESU. The primary data were collected through schedule
questionnaires.
The secondary data have been collected from the annual reports of
CESU for the last five years, house magazines, different books, journals,
official publications and other materials pertaining to the company. The
secondarydata were collectedfrom different official documents, broachers,
annual reports, official files, seminar papers etc.
3.3 Questionnaire Design:
The questionnaire was designed taking into consideration the
various issues discussed in the meetings, current happenings in
organization after an extensive discussionwith researchers in the field. The
validity of the instrument has already been tested in some previous
summer projects.
3.4 Data Analysis:
The data collection from primary sources is presented in tabular
form. The analysis of data, which is the ultimate step of this research
report, was done basically by simple averages. Graphical method of
presentation was made.
12. 4. Limitation of the Study
The study of performance appraisal in CESU is very broad but the time
period of the study was limited only to a perception of certain section of
employees. A detail microscopic study was not possible due to time
conscious.
Due to insufficient time period it was impossible to gather some relevant
data which would have enriched the project
Due to work pressure the employees exhibited the reluctance and filling up
the questionnaire.
The response provided may be not accurate from the employee side which
would have affected the project validity and reliability.
5. Relevance of the study
Performance appraisal is the most important tool to check, and manage
the performance of the employee in any organization.
It also helps to reflect the strength and weaknesses of the organization.
If the performance of the organization is managed appropriately then it
would lead to better productivity and employee retention.
14. HISTORY OF ORGANISATION
The Odisha Electricity Regulatory Commission (the Commission) vide its
order dated 31.03.1999 passed in case No.2/99, under the provisions of
the Odisha Electricity Reform Act, 1995, had issued License to Central
Electricity Supply Company of Odisha Ltd. (CESCO) Registered Office:
2nd
Floor, IDCO Tower, Janpath, Bhubaneswar-751022, Dist: Khurda,
Odisha, to carry out the business of Distribution & Retail Supply in the
area of supply as mentioned in the said license. Under the said license,
CESCO had been carrying out the Distribution and Retail Supply as its
licensed activity in its area of supply as stated in the said license. The
Commission revoked the license of CESCO with effect from 01.04.2005
and on 18.04.2005 the Commission appointed Chief Executive Officer
15. and Administrator (CEO & A) to discharge the licensed activity of Central
Zone Electricity Distribution and Supply Utility (CZEDSU). Later, vide
order dt.08.09.2006,the Commission in exercise of power u/s 22 of the
Electricity Act,2003 has formulated a Scheme named “ Central Electricity
Supply Utility of Odisha ( Operation and Management ) Scheme ,
2006 for operation and management of the Utility. The said Scheme
shall remain in force fora period of 2 years which may be extended by the
Commission in public interest. Under the provisions of said Scheme, all
assets, liabilities, rights, proceedings and manpower as well as the
license for distribution and supply of electricity held by CESCO has been
developed and vested on Central Electricity Supply Utility of Odisha
(CESU) and it has been authorized to carry out the business of
distribution of electricity in accordance with license conditions in respect
of area assigned to CESCO under revoked license has to abide by the
directions of the Commission issued from time to time. The period of the
Scheme is further extended for a period of one year w.e.f. 08.09.2010 to
07.09.2011.As per provision of aforesaid scheme; the Commission has
also constituted a Management Board for the general / overall
management of CESU. The scheme was again amended and extended
up to 07.09.2016. Under the aforesaid Scheme, the CESU has to comply
with the provisions of the Electricity Act, 2003 and other relevant statutory
provisions and license conditions with regard to distribution of electricity in
its area of supply.
Our Vision
16. To ensure uninterrupted quality and reliable power supply to its
consumers.
To be the best distribution utility of India.
To make every work place a safe working place.
To be socially responsible for employees and society.
Our Mission
Be a corporate responsibleto care for human beings.
To adopt a profitable policy to create a happy workforce & adopt best
work culture & practices.
To Follow fair labor welfare practices & by eliminating fear of
redundancy from the mind of people through propertraining.
Managing the change processby good and fair HRD Practices.
To deploylatest technologies in the system to bring transparency.
Core Values
CustomerFocus
Organization pride
Quality & reliable services
Mutual respect& pride
Initiative & Speed
18. Finance wing
Consumer relation wing
Public relation
Law
Field officer
Electrical power has become almostas much of a necessity as water in our
everyday lives. No one really thinks much about it until an outage occurs
and it isn't there. It is used twenty-four hours a day, seven days a week,
and fifty-two weeks a year. We use it for heating, cooling, cooking,
refrigeration, light, sound, motion, computation and entertainment.
Electrical power is a dynamic commodity and must be produced as it is
being used. Production of electrical power we use occurs in many power
plants across the state of Orissa. The majority of these plants burn coal to
produce electrical power, however, some are powered by water
(hydroelectric), natural gas, oil, nuclear, wind and geothermal. In all cases
energy from the fuel source is used to spin an electrical generator
producing three-phase AC electrical power. CESU has no generation
19. capacity of its own. Electrical power used on the CESU Electric distribution
system is purchased from NTPC/GRIDCO/OHPC through different
Services.
NTPC provides this power from its coal fired generation at the Talcher
power plant. The remainder is purchased from OHPC.
At most power plants electrical power is generated at 11KV. In the
generating station generator is used to step the voltage up to a
transmission voltage level somewhere between 132KV - 500KV. This high
voltage electrical power is then transported from the power plant to primary
distribution substations through the transmission system. These extremely
high voltages used on the transmission system allow for a greater amount
of power to be transported across the system with less electrical line losses
and greater efficiency. These transmission lines are supported by either
steel towers or wood poles,primarily dependentupon the level of voltage of
the transmission line.
20. In primary substation, step down transformers are used to reduce the
voltage to a range of 33KV to 66KV.Then electrical power is carried by the
transmission system to a number of power or distribution substations where
the electrical power is steppeddown by means of a distribution transformer
to voltage levels between 400V and 11KV for distribution to individual
customers. CESU receives its electrical power at a transmission voltage of
volts at 132KV-33KV at nineteen distribution substations located
throughout its Five Circles in Orissa. CESU then distributes the power from
the distribution substations across its distribution grid to its members at a
three phase primary voltage level of 440V/11KV/33KV and a single phase
primary voltage level of 230 volts.
21. CESU distribution grid consists of 1800 miles of single phase, 230 volt line
and 750 miles of three phases, 440 lines. In order to provide members
electrical power at their required service voltages, distribution transformers
are installed along the line at each business, residence and farm.
Residential services and most farms require 230 volt single phase service
which is provided by a single distribution transformer located on the pole or
on a concrete pad at the member location. Some farms, larger businesses
and the many irrigation services served by the cooperative require three
phase services. These three phase services may be 440V, 11KV, 33KV.
These services are provided by three single phase distribution transformers
wired together to form a three phase bank located on the pole adjacent to
the service, or by a single three phase transformer located on a concrete
pad at the member location. From the distribution transformer or
transformer bank, secondary and/or service conductors are installed to the
electrical meter, located either on a metering pole or on the member's
house or building. The meter measures all energy used by the member in
kilowatt hours (KWH). In the case of three phase services the meter also
measures kilowatt (KW/KVA) demand which reflects the highest fifteen
minute requirement for power. This meter is used by the cooperative to
determine the member's electrical requirements as well as for billing
purposes.From the meter the member or his electrician installs the service
entrance conductors which provide power to the main electrical panel
within the house or building from which the member's lighting and power
loads are served.
27. Performance Appraisal: A conceptual framework
A performance appraisal is a systematic and periodic process that
assesses an individual employee's job performance and productivity in
relation to certain pre-established criteria and organizational objectives
Other aspects of individual employees are considered as well, such
as organizational citizenship behavior, accomplishments, potential for
future improvement, strengths and weaknesses, etc.
To collect PA data, there are three main methods: objective production,
personnel, and judgmental evaluation. Judgmental evaluations are the
most commonly used with a large variety of evaluation
methods. Historically, PA has been conducted annually (long-cycle
appraisals); however, many companies are moving towards shorter cycles
(every six months, every quarter), and some have been moving into short-
cycle (weekly, bi-weekly) PA. The interview could function as
"providing feedbackto employees, counseling and developing employees,
and conveying and discussing compensation, job status, or disciplinary
decisions".
PA is often included in performance management systems. PA helps the
subordinate answer two key questions:first, "What are your expectations of
me?" second, "How am I doing to meet your expectations?"
Performance management systems are employed "to manage and align"
all of an organization's resources in order to achieve highest possible
performance. "How performance is managed in an organization determines
to a large extent the success or failure of the organization. Therefore,
28. improving PA for everyone should be among the highest priorities of
contemporary organizations".
Some applications of PA are compensation, performance improvement,
promotions, termination, test validation, and more. While there are many
potential benefits of PA, there are also some potential drawbacks. For
example, PA can help facilitate management-employee communication;
however, PA may result in legal issues if not executed appropriately, as
many employees tend to be unsatisfied with the PA process. PAs created
in and determined as useful in the United States are not necessarily able to
be transferable cross-culturally.
1. Potential Benefits:
There are a number of potential benefits of organizational performance
management conducting formal performance appraisals (PAs). There has
been a general consensus in the belief that PAs lead to positive
implications of organizations. Furthermore, PAs can benefit an
organization’s effectiveness. One way is PAs can often lead to giving
individual workers feedback about their job performance. From this may
spawn several potential benefits such as the individual workers becoming
more productive.
2. Other Potential Benefits Include:
Facilitation of communication: communication in organizations is
considered an essential function of worker motivation. It has been
proposed that feedback from PAs aid in minimizing
29. employees’ perceptions of uncertainty. Fundamentally, feedback and
management-employee communication can serve as a guide in job
performance.
Enhancement of employee focus through promoting trust: behaviors,
thoughts, and/or issues may distract employees from their work, and trust
issues may be among these distracting factors. Such factors that
consume psychological energy can lower job performance and cause
workers to lose sight of organizational goals. Properly constructed and
utilized PAs have the ability to lower distracting factors and encourage trust
within the organization.[
Goal setting and desired performance reinforcement: organizations
find it efficient to match individual worker’s goals and performance with
organizational goals. PAs provide room for discussion in the collaboration
of these individual and organizational goals. Collaboration can also be
advantageous by resulting in employee acceptance and satisfaction of
appraisal results.
Performance improvement: well constructed PAs can be valuable
tools for communication with employees as pertaining to how their job
performance stands with organizational expectations. "At the organizational
level, numerous studies have reported positive relationships between
human resource management (HRM) practices “and performance
improvement at both the individual and organizational levels.
Determination of training needs:“Employeetraining and development
are crucial components in helping an organization achieve strategic
initiatives”. It has been argued that for PAs to truly be effective, post-
appraisal opportunities for training and development in problem areas, as
determined by the appraisal, must be offered. PAs can especially be
30. instrumental for identifying training needs of new employees. Finally, PAs
can help in the establishment and supervision of employees’ career goals.
3. Methods Of Performance Appraisal
Numerous methods have been devised to measure the quantity and quality
of performance appraisals. Each of the methods is effective for some
purposes for some organizations only. None should be dismissed or
accepted as appropriate except as they relate to the particular needs of the
organization or an employee.
Broadly all methods of appraisals can be divided into two different
categories.
Past Oriented Methods
Future Oriented Methods
3.1. Past Oriented Methods
3.1.1 Rating Scales: Rating scales consists of several numerical scales
representing job related performance criterions such as dependability,
initiative, output, attendance, attitude etc. Each scales ranges from
excellent to poor. The total numerical scores are computed and final
conclusions are derived.
Advantages – Adaptability, easy to use, low cost, every type of job can
be evaluated, large number of employees covered, no formal training
required.
31. Disadvantages – Rater’s biases
3.1.2 Checklist: Under this method, checklist of statements of traits of
employee in the form of Yes or No based questions is prepared. Here the
rater only does the reporting or checking and HR department does the
actual evaluation.
Advantages – economy, ease of administration, limited training
required, standardization.
Disadvantages – Raters biases, use of improper weighs by HR, does
not allow rater to give relative ratings.
3.1.3 Forced Choice Method: The series of statements arranged in
the blocks of two or more are given and the rater indicates which statement
is true or false. The rater is forced to make a choice. HR department does
actual assessment.
Advantages – Absence of personal biases because of forced choice.
Disadvantages – Statements may be wrongly framed.
3.1.4. Forced Distribution Method: here employees are clustered
around a high point on a rating scale. Rater is compelled to distribute the
employees onall points on the scale. It is assumed that the performance is
conformed to normal distribution.
32. Advantages – Eliminates
Disadvantages – Assumption of normal distribution, unrealistic, errors
of central tendency.
3.1.5 Critical Incidents Method: The approach is focused on certain
critical behaviors of employee that makes all the difference in the
performance. Supervisors as and when they occur record such incidents.
Advantages – Evaluations are based on actual job behaviors, ratings
are supported by descriptions, feedback is easy, reduces recency biases,
chances of subordinate improvement are high.
Disadvantages – Negative incidents can be prioritized, forgetting
incidents, overly close supervision; feedback may be too much and may
appear to be punishment.
3.1.6 Behaviorally Anchored Rating Scales: statements of
effective and ineffective behaviors determine the points. They are said to
be behaviorally anchored. The rater is supposed to say, which behavior
describes the employee performance.
Advantages – helps overcome rating errors.
Disadvantages – Suffers from distortions inherent in most rating
techniques.
33. 3.1.7 Field Review Method: This is an appraisal done by someone
outside employees’ own department usually from corporate or HR
department.
Advantages – Useful for managerial level promotions, when comparable
information is needed,
Disadvantages – Outsider is generally not familiar with employees work
environment, Observation of actual behaviors not possible.
3.1.8 Performance Tests & Observations: This is based on the
test of knowledge or skills. The tests may be written or an actual
presentation of skills. Tests must be reliable and validated to be useful.
Advantage – Tests may be apt to measure potential more than actual
performance.
Disadvantages – Tests may suffer if costs of test development or
administration are high.
3.1.9 Confidential Records: Mostly used by government departments,
however its application in industry is not ruled out. Here the report is given
in the form of Annual Confidentiality Report (ACR) and may record ratings
with respect to following items; attendance, self expression, team work,
leadership, initiative, technical ability, reasoning ability, originality and
resourcefulness etc. The system is highly secretive and confidential.
34. Feedback to the assesses is given only in case of an adverse entry.
Disadvantage is that it is highly subjective and ratings can be manipulated
because the evaluations are linked to HR actions like promotions etc.
3.1.10 Essay Method: In this method the rater writes down the
employee description in detail within a number of broad categories like,
overall impression of performance, promote ability of employee, existing
capabilities and qualifications of performing jobs, strengths and
weaknesses and training needs of the employee.
Advantage – It is extremely useful in filing information gaps about the
employees that often occur in a better-structured checklist.
Disadvantages – It its highly dependent upon the writing skills of rater
and most of them are not good writershey may get confused success
depends on the memory power of raters.
3.1.11 Cost Accounting Method: Here performance is evaluated
from the monetary returns yields to his or her organization. Cost to keep
employee, and benefit the organization derives is ascertained. Hence it is
more dependent upon cost and benefit analysis.
3.1.12 Comparative Evaluation Method (Ranking & Paired
Comparisons): These are collection of different methods that compare
performance with that of other co-workers. The usual techniques used may
be ranking methods and paired comparison method.
35. Ranking Methods: Superior ranks his worker based on merit,
from best to worst. However how best and why best are not elaborated in
this method. It is easy to administer and explanation.
Paired Comparison Methods: In this method each employee is
rated with another employee in the form of pairs. The number of
comparisons may be calculated with the help of a formula as under.
N x (N-1) / 2
3.2Future Oriented Methods:
3.2.1 Management by Objectives: It means management by
objectives and the performance is rated against the achievement of
objectives stated by the management. MBO process goes as under.
Establish goals and desired outcomes for each subordinate
Setting performance standards
Comparison of actual goals with goals attained by the employee
Establish new goals and new strategies for goals not achieved in
previous year.
Advantage – It is more useful for managerial positions.
Disadvantages – Not applicable to all jobs, allocation of merit pay may
result in setting short-term goals rather than important and long-term goals
etc.
36. 3.2.2 Psychological Appraisals: These appraisals are more directed
to assess employee’s potential for future performance rather than the past
one. It is done in the form of in-depth interviews, psychological tests, and
discussion with supervisors and review of other evaluations. It is more
focused on employees emotional, intellectual, and motivational and other
personal characteristics affecting his performance. This approach is slow
and costly and may be useful for bright young members who may have
considerable potential. However quality of these appraisals largely depends
upon the skills of psychologists who perform the evaluation.
3.2.3 Assessment Centers: This technique was first developed in
USA and UK in 1943. An assessment center is a central location where
managers may come together to have their participation in job related
exercises evaluated by trained observers. It is more focused on
observation of behaviors across a series of select exercises or work
samples. Assesses are requested to participate in in-basket exercises,
work groups, computer simulations, role playing and other similar activities
which require same attributes for successfulperformance in actual job. The
characteristics assessed in assessment center can be assertiveness,
persuasive ability, communicating ability, planning and organizational
ability, self confidence, resistance to stress, energy level, decision making,
sensitivity to feelings, administrative ability, creativity and mental alertness
etc.
Disadvantages – Costs of employees traveling and lodging,
psychologists, ratings strongly influenced by assessor’s inter-personal
37. skills. Solid performers may feel suffocated in simulated situations. Those
who are not selected for this also may get affected.
Advantages – well-conducted assessment center can achieve better
forecasts of future performance and progress than other methods of
appraisals. Also reliability, content validity and predictive ability are said to
be high in assessment centers. The tests also make sure that the wrong
people are not hired or promoted. Finally it clearly defines the criteria for
selection and promotion.
3.2.4 360-Degree Feedback: It is a technique which is systematic
collection of performance data on an individual group, derived from a
number of stakeholders like immediate supervisors, team members,
customers, peers and self. In fact anyone who has useful information on
how an employee does a job may be one of the appraisers. This technique
is highly useful in terms of broader perspective, greater self-development
and multi-source feedback is useful. 360-degree appraisals are useful to
measure inter-personal skills, customer satisfaction and team building
skills. However on the negative side, receiving feedback from multiple
sources can be intimidating, threatening etc. Multiple raters may be less
adept at providing balanced and objective feedback.
38.
39. Performance Appraisal System at CESU
Central Electricity Supply Utility of Odisha ltd,(in short CESU) is a reform
structure of OSEB, which was semi-Government Organization in CESU,
there are 02(Two)types of Performance Appraisal System:
1. Closed ended appraisal system
2. Open ended appraisal system
1. Close ended appraisal system (Confidential Characteristic
Roll)
Close ended appraisal system is followed in case of Non-Executive
employee. There are different CCRs depending upon the nature of work
e.g. Office Assistant, Employee under training & Accounts personnel.
The CCRs Forms prescribed forvarious categories of employees are
furnished in the appendix-I, II & III.
A confidential report (CCR) is submitted on the performance of the
employee. Only where an adverse assessment is made against an
individual employee, the individual employee concerned is informed about
the same.
1.1Contents of the CCRs are as under:
Job Knowledge
Quality of Work
Leadership
40. Problem solving and decision making
Planning & Organizing
Responsibility & Accountability
Customer Service
Business Judgment
Ability to work with others
Motivating others
Creativity
Initiative and Enthusiasm
Interpersonal Competence
Communication skill
Integrity and courage
Honesty and sincerity
1.2Custody of CCRs:
CCRs of Non-executive employees are recorded in the forms
prescribed for various categories of employees and are maintained in the
officesof Appointing Authorities. The CCRs of Divisional Cadre employees
are maintained in the offices of Divisional Authorities. The CCRs of Circle
Cadre employees are maintained in the offices of Circle Cadre Authorities.
The CCRs of Head Office Cadre employeesare maintained in Head Office.
2. Open ended appraisal system:
(Executive appraisal report)
41. Open ended appraisal system is followed in case of appraisal of
performance of the executive employees. Performance of the individual is
discussed with the appraise and the appraise is ranked in a point rating
scale.
The results of appraisal are normally used to:
1. Estimate the overall effectiveness of an employee in performing their
jobs.
2. Identify strength and weakness in job knowledge and skill.
3. Determine whether subordinates responsibilities can be expanded.
4. Identify future Training & Development needs.
5. Review progress towards goals and objectives.
6. Determine readiness for promotion. and
7. Motivate & Guide growth and development.
2.1 Levels of assessment:
There are 3(Three) levels of assessment such as
Reporting Authority
Reviewing Authority
Accepting Authority
Reporting authority is the officer who is in immediate supervision of the
work of the employee reported upon.
Reviewing authorities & Accepting authorities are those officers who have
occasion to see the work of the officer reported upon.
42. CESU which is an out-come of the reform process in the state has adopted
an Open Ended Appraisal System for assessmentof the performance of its
executives. It is based on the principle that Development or Changes takes
place only if the appraise is interested any development or change. Such
desire is normally an outcome of self-review or reflection. It is an
opportunity for the appraise to recapitulate and list-down his
accomplishment and failure important part of the self-appraisal is the
process of review and reflection through performance analysis.
In the performance analysis the appraiser:
1. Complements the appraise for his accomplishment and good qualities.
2. Understand and appreciate his difficulties and make action plans to help
in the future.
3. Understand the appraiser’s perception of the situation and correct the
perceptions, if necessary.
4. Help him to recognize his strong points and weak points.
5. Communicate the expectation of the appraiser from the appraisee, and
6. Identifydevelopmentalneeds of the appraisee and chalk out a course of
action for meeting theses needs.
43. 2.2 General guide lines:
EPAR forms are to be written by the Appraisee himself according
to the financial year (1st
APRIL to 31st
MARCH).The appraisee mansions
about the significant achievements and contributions made by him during
the period under review, major constraints and difficulties he faced in
accomplishing the desired level during the period under review. Appraisee
mentions about submission of annual report on immovable properties.
Appraisee mentions about responsibility and specific tasks and targets
assigned to him or carried out by him during the period under review.
Appraisee submits his Appraisal Report to his Reporting Authority. Then
Reporting Authority calls the appraisee for a discussion on the
responsibility, tasks assignments and targets entrusted to the appraisee
during the period under review, about the constraints he faced in
accomplishing the tasks. Discuss, about the major strength and weakness
of the appraisee. The 2nd
part of the EPAR form is the confidential part,
which is recorded by the reporting Authority himself. Reporting Officer
assesses the work performance and managerial traits of the officer
concerned in a point rating and Weight age method, basing on which an
overall evaluation is made. Over all evaluation varies within 5(five) grades.
These are “OUTSTANDING”, “VERY GOOD”, “AVERAGE”& “BELOW
AVERAGE”.If the appraisee is rated “Outstanding” or “Below Average” the
Reporting Officersubstantiates the same with specificcomments. Then the
EPAR is submitted to the Reviewing Authority makes a review of the
assessment made by the reporting officer and gives his rating. Finally, the
EPAR is submitted to the Accepting Authority who gives his observation on
the same and give his final rating of the apraisee. Last part of the EPAR
44. contains the training and development needs of the appraisee during the
appraisal period. The Reporting and Reviewing Authorities make their
specific recommendations after making an assessment of appraisee’s
performance, knowledge, skills and attitude. Similarly, remark of the
accepting authority prevails over the Reviewing Authority. Adverse remark
recorded by the Reporting Authority is waived out, if these remarks have
been counter-balanced by the reviewing Authority or Accepting Authority.
Same methods are adopted regarding communication of adverse remarks,
submission of representation by the appraisee and disposal of
representation as followed in case of Confidential Characteristic Roll
(CCR).
The Performance appraisal report should reach the accepting authority by
31st
May.
2.3 Factors of overall evaluation:
For overall evaluation, weightage is ascribed to two factors namely
a) Work Performance &
b) Managerial Traits
a) Attributes under Work Performance:
There are different parameters/ attributes to be
selectively used relevant to the nature of the job of the appraise. Work
Performance attributes are there for:
A. Engineers posted at field units
B. Engineers posted at the corporate office
C. HR functionaries
45. D. Finance managers
E. Public relations managers
F. For legal functionaries
b) Attributes under Managerial Traits:
1. Problem analysis and decision making (Identification of problems,
formulation of alternative solutions and their evaluation)
2. Initiative/creativity(Ability to give shape to imaginative and innovative
ideas)
3. Group effectiveness(ability to work in teams, sensitivity to other)
4. Communication skills(persuasive and appropriate written/ oral
communication, clarity of thought and good presentation)
5. Development of sub-ordinates(ability to delegate, guide, train and
objectively assess subordinates)
Prescribed booklet of EPAR is furnished in the Appendix-II.
2.4 Overall assessment:
Overall assessment of the employee reported upon is generally summed
up into one of the following grades:
“OUTSTANDING”
“VERYGOOD”
“GOOD”
“AVERAGE”
“BELOW AVERAGE”
If the employee is awarded “OUTSTANDING” or “BELOW AVERAGE”,
reason of awarding such grading is to be justified by the Authority
concerned.
46. If the employee concerned is working for less than 3 months under the
Reporting Authority, a “No Remark Certificate “is to be recorded in the
CCR.
2.5 Communication of adverse remarks:
Adverse remarks are communicated directly to the employee
concerned by the officer kept in charge of CCRs. Appointing Authority is
the final authority to decide whether a particular remark is adverse or not.
The remark of the countersigning officer prevails over that of the Reporting
Officer. Similarly; the remark of the Accepting Authority prevails over that of
the countersigning officer. Below Average grading is always treated as
Adverse Remark and is always communicated. While communicating
adverse remark, the employee concerned is asked to submit his
presentation, if any. If such, presentation is received the same is endorsed
to the authority of adverse remark to furnish his comments on the
representation. Then the representation is disposed of by the cadre
Authority and is communicated to the employee concerned.
47.
48. Data Analysis and Interpretation
This chapter contains the opinion survey of the workers, trainees and
managerial, executives and non-executive personnel on the effectiveness
of the performance appraisal system in CESU. Because of their busy
schedule only 25 executives and 25 Non-executives formed the sample to
be interviewed from various department of CESU.
OPINION SURVEY OF EXECUTIVES AND NON-EXECUTIVES:
1. In your Opinion Performance Appraisal is:
a. Evaluation of Employees, b. Promotion of Employees,
c. Job Satisfaction of Employees, d. Motivation
Interpretation:
Parameter No of respondents Percentage
Evaluation of employees 30 60%
Promotion of employees 20 40%
Job satisfaction of
employees
- -
Motivation - -
Total 50 100%
49. 60% of employees believe that In Performance Appraisal is evaluation of
employees. Other 40% are believed that performance appraisal is
promotion of employees.
2. Do you receive any increment in your salary after performance
appraisal:
Interpretation:
Parameter No of respondents Percentage
Yes - -
No 50 100
Total 100%
Evaluation of employees
promotion of employees
Job satisfaction of employees
Motivation
50. Hence, it is a government organization there is no link between
performance appraisal and salary increment.
3. Do you think that performance appraisal helps to provide an
atmosphere where all are encouraged to share each other’s
burden:
Interpretation:
Parameter No of respondents Percentage
Yes 25 50%
No 25 50%
Total 50 100%
Yes
No
51. 50% of the employ think that performance Appraisal help to provide an
atmosphere where all are encouraged to share one another burden.
4. Do you think performance appraisal helps people set and
achieve meaningful goals:
Interpretation:
Parameter No of respondents Percentage
Yes 45 90%
No 5 10%
Total 50 100%
Yes
No
52. 90% of employ think that performance appraisal helps people set and
achieve meaningful goals. 10% of employ think that performance appraisal
helps people set and achieve meaningful goals.
5. Do you think performance appraisal give constructive criticism in a
friendly and positive manner?
Interpretation:
Parameter No of respondents Percentage
Yes 50 100%
No - -
Total 50 100%
Yes
No
53. 100% employ of CESU think that performance appraisal give constructive
criticism in a friendly and positive manner.
6. Do you think that performance of employees is improved after the
process of performance appraisal:
Interpretation:
Parameter No of respondents Percentage
Yes 35 70%
No 15 30%
Total 50 100%
Yes
No
54. 70% of employees say yes that performance appraisal improve
performance of employees.30% of employees say no that performance
appraisal improve performance of employees.
7. Do you think performance appraisal improves motivation and
job Satisfaction:
Interpretation:
Parameter No of respondents Percentage
Yes 35 70%
No 15 30%
Total 50 100%
Yes
No
55. 70% of employees say yes that performance appraisal improves job
satisfaction. 30% of employees say no that performance appraisal
improves job satisfaction.
8. When performance appraisal is made in the organization:
a. Monthly
b. Quarterly
c. Yearly
d. Others
Yes
No
56. Interpretation:
Parameter No of respondents Percentage
Monthly - -
Quarterly - -
Yearly 50 100
Others - -
Total 50 100%
Because it’s a government organization therefore the performance
appraisal made on yearly basis.
Monthly
Quarterly
Yearly
Others
57. Major Findings:
In the project study the questionnaire has been framed as such that it
covers almost all spheres under performance appraisal.
Not only the close-ended questions, but also open-ended questions have
been asked where the feedbacks have been taken care of individually.
Depending upon the results, the subjective responses are also presented in
a tabular manner, along with which pie-charts give a clear-cut picture of the
responses for certain type of questions which reveals the nature &
genuinely of the research.
The feedback given in percentage is clearly showing the weight age of any
option with regard to the total options available.
From the survey report it is inferred that:
As it’s a government organization, the performance appraisal is done on an
annual basis.
Maximum no of employees believe that performance appraisal improves
job satisfaction.
Maximum no of employees believe that performance appraisal improves
performance of employees.
Every employee of CESU thinks that performance appraisal gives
constructive criticism in a friendly and positive manner.
Maximum numbers of employees think that performance appraisal helps
people set and achieve meaningful goals.
58. Half of the employee thinks that performance Appraisal help to provide an
atmosphere where all are encouraged to share one another burden.
Hence, it is a government organization there is no link between
performance appraisal and salary increment.
More employees believe that in Performance Appraisal, evaluation of
employees. Others believe that performance appraisal leads to promotion
of employees.
59.
60. CONCLUSION
In the volatile environment, which is dynamic and changing fast, it is quite
difficult to motivate the employees and make them happy in their work. The
quality of an appraiser is much more crucial than the appraisal methods. As long
as human being evaluates another, there would be some subjectivity in
assessment. Thus it is essential to balance the subjectivity and objectivity in the
appraisalsystem to make it people oriented, workableand productive. Moreover,
the purpose of the system should be more developmental rather than punitive in
nature. In a good performance appraisal system:
Officers and workers arewell awareof the performanceappraisalsystem.Officer
and workmen are familiar with the traits on which they are evaluated. Feed back
is given properly in employee’s case. They receive feedback only in cases they are
lacking. Self appraisal is beneficial for executives. Functional benefits, co-
operatives boss, working conditions etc. affect their performance but promotion
is the most important factors which affect performance. The success of
performance appraisal system depends on the sincerity shown by the
management and the existence of transparent link between performance and
reward. The aim is to develop employees. The managers need to be counselors,
helpers and teachers. But in contrast, no organization goes for a detailed
appraisal and the results are not communicated to the employees. Even if some
actions are taken its impact is negligible, as a result most of the employees
consider it a wasteful paperwork.
61. SUGGESTION
After thorough study of the present Performance Appraisal System in
CESU, following suggestions are made:
1. The performance appraisal system in CESU specifically in case of
Non-executive employees should be more specific and
transparent.
2. To improve the performance there should be a system of
disincentive for performing and underperforming.
3. The purpose of performance appraisal should not be promotion
oriented but developmental oriented.
4. Outstanding performers should be rewarded and motivated.
5. The performance review meeting should be conducted at least
one in a year as stipulated in the system.
6. Opportunity must be given to employees for expressing and
indicating the major constraints and difficulties they face in
accomplishing the desired level of performance.
7. Sub-ordinates and should also be included for rating (360 degree
method).
8. Present feedback system has got its significance in its manual
only. It should be more practical.
62. BIBLIOGRAPHY
BOOKS:
HUMAN RESOURCE MANAGEMENT(S.S KHANKA)
HUMAN RESOURCE MANAGEMENT(P.C TRIPATHI)
HUMAN RESOURCE AND DEVELOPMENT (VSP RAO)
HUMAN RESOUCE AND DEVELPOMENT (T.N.CHABRA)
HUMAN RESOURCE MANAGEMENT (BISWANATH GHOSH)
WEBSITE’S NAME
www.cesuorissa.com
www.citehr.com
REFERENCES
1. CESU officer’s service regulation.
2. Relevant Circulars issued on maintenance of CCRs/EPARs.
63. APPENDIX
QUESTIONNAIRE
Topic Performance Appraisalin CESU Executive View
(This questionnaire is confidentialand it is made for study purpose only.
This is used only for project not for officialpurpose)
Please make a tick mark whichever applicable:
a) Name-(optional):
b) Department:
c) Designation:
1. No of year for service
a. Less than 5 years
b. 5 to 10 years
c. 11 to 20 year
d. 21 to 30 year
e. Above 30 year
2. In your Opinion Performance Appraisalis?
a. Evaluation of Employees
b. Promotionof Employees
c. Job Satisfaction of Employees
d. Motivation
64. 1. Do you receive any increment in your salary after performance
Appraisal?
a. Yes
b. No
2. Do you think that performance Appraisalhelp to provide an
atmosphere where all are encouraged to share one another burden.
a. Yes
b. No
3. Do you think performance appraisal helps people setand achieve
meaningful goals?
a. Yes
b. No
4. Do you think performance appraisal give constructive criticism in a
friendly and positive manner?
a. Yes
b. No
5. Do you think that performance of employees improve after processof
performance appraisal?
a. Yes
b. No
6. Do you think performance appraisal improves motivation and job
Satisfaction?
65. a. Yes
b. No
7. When performance appraisal is made in the organization?
e. Monthly
f. Quarterly
g. Yearly
h. Others
