CHAPTER-I

INTRODUCTION Performance appraisal is a process evaluating the performance of employee in terms of requirement of the job. It is a continuous process of assessing the worth of man holding particular job. Once the employee selected, trained and employed, he then appraised for his/her performance. Performance appraisal is the basic rewarding and developing an employee. The employee appraisal form as used in the World War I. When at the instance \ ALTER DILL SCOTT. The USA army adopted the men to men rating s stem tr evaluating military personnel. During the period of 1920-30. Relational wages structure for hourly paid v. workers as adopted in industrial units under this system. The policy of giving grade-wise increments based on merit was accepted. These early employee plans were called merit-rating programs. Now that term merit rating is replaced by performance appraisal. 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.

Employee performance Management includes: Planning work and setting expectations, Continually monitoring performance, Developing the capacity to perform, Periodically rating performance in a summary fashion, and Rewarding good performance Performance management is the systematic process by which an organization involves its employees, as individuals and members of a group, in improving organizational effectiveness in the accomplishment of organization mission and goals.

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. 3

By focusing the attention on performance, performance appraisal goes to the heart of personnel management and reflects the managements interest in the progress of the employee.

OBJECTIVES OF PERFORMANCE APPRAISAL

To review the performance of the employees over a given period of time. To judge the gap between the actual and the desired performance Self assessment by employee Understanding strength and weakness. Identifying training and development needs. Identifying potential. Better understanding between appraised and appraiser. Recognizing achievements. Goal setting GOAL. Improved organizational performance. To review the performance of the employees over a given period of time. To judge the gap between the actual and the desired performance. To help the management in exercising organizational control. Helps to strengthen the relationship and communication between superior subordinates and management employees. To diagnose the strengths and weaknesses of the individuals so as to identify the training and development needs of the future. To provide feedback to the employees regarding their past performance. Provide information to assist in the other personal decisions in the organization. Provide clarity of the expectations and responsibilities of the functions to be performed by the employees.

STEPS OF PERFORMANCE APPRAISAL

ESTABLISHING PERFORMANCE STANDARDS The first step in the process of performance appraisal is the setting up of the standards which will be used to as the base to compare the actual performance of the employees. This step requires setting the criteria to judge the performance of the employees as successful or unsuccessful and the degrees of their contribution to the organizational goals and objectives. The standards set should be clear, easily understandable and in measurable terms. In case the performance of the employee cannot be measured, great care should be taken to describe the standards.

COMMUNICATING THE STANDARDS Once set, it is the responsibility of the management to communicate the standards to all the employees of the organization. 5

The employees should be informed and the standards should be clearly explained to the. This will help them to understand their roles and to know what exactly is expected from them. The standards should also be communicated to the appraisers or the evaluators and if required, the standards can also be modified at this stage itself according to the relevant feedback from the employees or the evaluators.

MEASURING THE ACTUAL PERFORMANCE The most difficult part of the performance appraisal process is measuring the actual performance of the employees that is the work done by the employees during the specified period of time. It is a continuous process which involves monitoring the performance throughout the year. This stage requires the careful selection of the appropriate techniques of measurement, taking care that personal bias does not affect the outcome of the process and providing assistance rather than interfering in an employees work.

COMPARING THE ACTUAL WITH THE DESIRED PERFORMANCE The actual performance is compared with the desired or the standard performance. The comparison tells the deviations in the performance of the employees from the standards set. The result can show the actual performance being more than the desired performance or, the actual performance being less than the desired performance depicting a negative deviation in the organizational performance. It includes recalling, evaluating and analysis of data related to the employees performance.

DISCUSSING RESULTS The result of the appraisal is communicated and discussed with the employees on one-toone basis. The focus of this discussion is on communication and listening. The results, the problems and the possible solutions are discussed with the aim of problem solving and reaching consensus. The feedback should be given with a positive attitude as this can have an effect on the employees future performance. The purpose of the meeting should be to solve the problems faced and motivate the employees to perform better.

DECISION MAKING The last step of the process is to take decisions which can be taken either to improve the performance of the employees, take the required corrective actions, or the related HR decisions like rewards, promotions, demotions, transfers etc. PURPOSE OF PERFORMANCE APPRAISAL It assists in management for management of work force planning. For developing successive plans and for preparing training schedules. To decide upon a pay increase where regular pay scales has not been fixed. To effect promotion based on competence and performance of employees. Relationships between management and subordinate are improved because of two way communication reinforced by regular appraisal interviews. Appraisal enables the manager to identify the training needs. Helps to strengthen weak areas. To let the employees know where they stand so for as their performance is concerned and to assist them with constructive criticism and guidance for the purpose of their development. IMPORTANCE OF PERFORMANCE APPRAISAL 1. Training and Development Needs: Performance appraisal helps the management in devising training and programs. It helps in identifying the areas of skill or knowledge in which several employees are not at par with the requirements thus pointing out general training deficiency which may be

corrected by additional, training, interviews. Discussions or counseling.

2. Compensation adjustments: Performance evaluations help decision-makers determine who should receive pa\ increases. Mans firms grant part or all of their pay increases and bonuses based on merit, which is determined mostly through performance. 3. Placement Decisions: Promotions transfers and demotions are usually based on past or anticipated performance often promotions are reward and past performance. 4. Career planning and development: Performance feedback guides career decisions about specific career paths one should investigate. 5. Performance Improvement: Performance feedback allows the employee. Manager and personnel specialists to intervene with appropriate actions to improve performance. 6. Self Improvement: It gives the employees an opportunity to have an insight on their performance and to take corrective measures to improve their performance.

PROCESS OF PERFORMANCE APPRAISAL:

1. Objectives of appraisal: It includes effecting promotions and transfers, assessing training needs. Awarding pay increases and the like. The emphasis in all these is to correct problem. The objectives are appropriate as long as approach in appraisal is individual. In the systems approach. The objectives of appraisal stretch be beyond the traditional ones, In the systems approach. Appraisal aims at improving the performance. Instead of merely assessing it. 2. Establish Job Expectations: This includes informing the employee what is expected of him/her on the job. Normally, a discussion is held with her/his superior to review the major duties contained in the job description. Individuals should not be expected to begin the job the understand what is expected of them.

3. Design the Appraisal Program: Designing an appraisal program poses several questions.Which need answers? They are. Formal versus informal appraisal Whose performance is to be assessed? Who are the raters? What problems are encountered? How to solve the problems? What should be evaluated? When to evaluate? What method of appraisal is to be used?

4. Appraise performance By using different methods of appraisal the performance appraisal is done, the some of the methods are self appraisal. Rating method, field review method. Management by objectives, etc. The methods adopted by the organizations may differ from one organization to other organization. 5. Performance interview Once the appraisal has been made of employees. The raters should discuss and review the performance with the raters, so that they will receive feedback about where they stand in the eyes of superiors performance, interview has three goals: To change behavior of employees whose performance does not meet organizational requirements or their own personal goals. To maintain the behaviour of employees who perform in acceptable manner. To recognize superior performance behaviours so that they will be continued.

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6. Use of Appraisal data The final step in the evaluation process is the use of evaluation data. The data and information gathered through performance evaluation must be used by the Human Resource department. In one way or the other, data and information outputs of a performance appraisal programmed can critically influence the employer-employee reward opportunities. Specifically, the data and information will be useful in the following areas of Human Resource management. Remuneration administration. Validation of selection programmes. Employee training and development programmes. Promotion, transfer and lay-off decisions. Grievance and discipline programmes. Human Resource planning.

CONTENTS OF PERFORMANCE APPRAISAL Contents to be appraisal may vary with purpose of appraisal type and level of the employee. Regularity of attendance. Honesty and sincerity. Area of interest. Organizational knowledge. Capability of assuming responsibility. Ability to work with others. Judgment skills. Integrity. Leadership styles and abilities. 11

Technical skills. II. Creative skills. Ability to reason. Knowledge of the system and procedure. Quality of suggestion offered for improvement.

METHODS OF PERFORMANCE APPRAISAL The manager usually conducts the appraisal using one or more of the formal methods described in this section. Graphic Rating Scale Methods A graphic rating scale lists a number of traits and a range of performance for each: it lists traits (such as quality and reliability) and a range of performance values (in this case from unsatisfactory to outstanding) for each trait. The supervisor rates each subordinate by circling or checking the score that best describes the subordinates performance for each trait, and then totals the scores for all traits. Alternation Ranking Method Ranking employees from best to worst on a trait or traits is another popular appraisal method. Because it is usually easier to distinguish between the worst and best employees than to rank them, an alternation ranking method is useful. This method indicate the employee who is highest on the trait being measured and also the one who is the lowest, alternating between highest and lowest until all employees to be rated have been addressed. Paired Comparison Method With the paired comparison method, every subordinate to be rated is paired with and compared to every other subordinate on each trait. For example, suppose there are five employees to be rated. With this method, a chart shows all possible pairs of employees 12

for each trait. Then for each trait, the supervisor indicates (with a plus or minus) who is the better employee of the pair. Next, the number of times an employee is rated better is added up. Forced Distribution Method: With the forced distribution method, the manager places predetermined percentages of subordinates in performance categories, as when a professor grades on a curve. Critical Incident Method The critical incident method entails keeping a record of uncommonly good or undesirable examples of an employees work-related behavior and reviewing it with the employee at pre-determined times. Employers often use the critical incident method to supplement a rating or ranking method. This helps ensure that the supervisor thinks about the subordinates appraisal all during the year, because the incidents must be accentuated therefore. The rating does not just reflect the employees most recent performance. Keeping a running list of critical incidents should also provide concrete examples of what specifically your subordinates can do to eliminate any performance deficiencies. Behaviorally Anchored Rating Scales Behaviorally anchored rating scale (BARS) is an appraisal method that combines the benefits of narrative critical incidents and quantitative ratings by anchoring a quantified scale with specific narrative examples of good and poor performance Other Methods are: Man-to-man comparison method. Checklist methods. o Simple checklist. o Weighted checklist. 13

o Forced choice method. Essay or free form appraisal Critical incident method. Group appraisal. Confidential reports. Field review method. Assessment center. Human resource accounting. Psychological appraisal.

MANAGERIAL ETHICS IN PERFORMANCE APPRAISAL Performance appraisal system should be effective as a number of crucial decisions are made on the basis of score or rating given by the appraiser, which in turn, is heavily based on the appraisal system. Appraisal system, to be effective, should possess the following essential characteristics:

1. Reliability and validity: Appraisal system should provide consistent, reliable and valid information and data, which can be used to defend the organization-even in legal challenges. If two appraisers are equally qualified and competent to appraise an employee with the help of same appraisal technique, their ratings should agree with each other. Then the technique satisfies the condition of inter-rater reliability. Appraisals must also satisfy the condition of validity be measuring what they are supposed to measure. For example, if appraisal is made for potential of an employee for promotion, it should supply the information and data relating to potentialities of the employee to take up higher responsibilities and carry on activities at higher level.

2. Job Relatedness: The appraisal technique should measure the performance and provide information in Job related activities/areas. 14

3. Standardization: Appraisal forms, procedures, administration of techniques, rating etc. should be standardized as appraisal decisions affect all employees of the group.

4. Practical Viability: The techniques should be practically viable to administer, possible to implement and economical regarding cost aspect.

5. Legal Sanction: It should have compliance with the legal provisions concerned of the country.

6. Training and Appraisers: Because appraisal is important and sometimes difficult, it would be useful to provide training to appraisers namely insights and ideas on rating, documenting appraisals, and conducting appraisal interviews. Familiarity with rating errors can improve rater performance and this may inject the needed confidence in appraisers to look into performance ratings more objectively.

7. Open Communication: Most employees want to know how well they are performing on the job. A good appraisal system provides the needed feedback on a continuing basis. The appraisal interviews should permit both parties to learn about the gaps and prepare themselves for future. To this end, managers should clearly explain their performance expectations to their subordinates in advance of the appraisals period. Once this is known it becomes easy for employees to learn about the yardsticks and, if possible, try to improve their performance in future. 8. Employee Access to Results: Employees should know the rules of the game. They should receive adequate feedback on their performance. If performance appraisals are meant for improving employees performance, then withholding appraisals results would not serve any purpose. Employees simply could not perform better without having access to this 15

information. Permitting employees to review the results of their appraisal allows them to detect any errors that may have been made. If they disagree with the evaluation, they can even challenge the same through formal channels.

It follows then that formal procedures should be developed to enable employees who disagree with appraisal results which are considered to be inaccurate or unfair. They must have the means for pursuing their grievances and having them addressed objectively.

When management uses it as a whip or fails to understand its limitations, it fails. The key is not which forms or which method is used. Performance appraisal should be used primarily to develop employees as valuable resources. Only then it would show promising results.

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CHAPTER-II

17

RESEARCH DESIGN

Title of the study

A Study on Performance Appraisal Strategy of ULTRATECH CEMENT LTD.

STATEMENT OF THE PROBLEM

It involves the study of the existing performance appraisal strategy at ULTRATECH CEMENT LTD. It also involves the effectiveness of the performance appraisal strategy at ULTRATECH CEMENT LTD. It implies what improvement has taken place among the employees after the performance appraisal strategy programs were introduced and how the various assessment measures have influenced them. This will help in the

betterment and improvement of the performance appraisal strategy programs and will deliver various ways for different appraisal methods and process.

OBJECTIVE OF THE STUDY

To analyze the effectiveness of performance appraisal strategy program in The ULTRATECH CEMENT LTD . To know the present organization climate through organization diagnosis. To understand the concepts in performance appraisal and how it takes place within the organization. To find out the shortcomings the organization faces with regard to employees as well as to know the knowledge, skills and attitudes of employees as they play an important role in the well being of the organization.

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RESEARCH DESIGN

A researcher design is the overall plan or program of research. It is the general blue print for the collection, measurement and analysis of data. It includes an outline what an investigator can do from writing the hypothesis and their operational implication to the final analysis of data. Various uses of having a research design are as follows

METHODOLOGY OF THE RESEARCH

A Research Design is the specification of methods and procedures for acquiring the information needs to structure or solve the problems. The type of research used was Descriptive type.

DATA Data constitutes the foundation of any analysis. Data is the collection of any number of related observations.

Surveys are the most popular device of obtaining the desired data. A survey is a process of collecting data from existing population units with no particular control over factors that may affect the population characteristic of interest in study.

Data is the quantitative or numerical information, which is collected for future analysis and interpretation in order to base decision on them.

SOURCES OF DATA

PRIMARY DATA: Primary data source comprises responses to questionnaire and interviews conducted with manager, supervisor of all department of the company.

SECONDARY DATA: 19

Secondary data source is the one that makes available data that are collected by some other agency earlier. It comprises different books on the human resource.

Question provided the subject with the multiple-choice response with four rating. In order to design a good questionnaire all relevant books on the subject were consulted. All the available articles and research work were taken into account. Exploratory discussion with my guide, who had intimate knowledge of the subject, helped me never lose sight of the hypothesis to be tested. Care was taken to relate all questions intimately to the final objective of the investigation.

DETERMINATION OF SAMPLE POPULATON It is defined in terms of elements, unit, extent and time. The demographic profile of the respondents was a below: Men or women employed in ULTRATECH CEMENTS LTD PMI starting from grade E1 to E7 must have a knowledge about PMS (performance management system) and their performance is evaluated according to that PMS only. Nature of population was homogeneous therefore a small sample was effective to represent it.

SIZE: - 50 employees

LIMITATIONS OF THE STUDY The study has certain limitations:

Sample size is limited to 50 only. Response of the some of the employees was not so satisfactory. Some of the respondents failed to understand the questionnaire. Time was limited to conduct a detailed study. The negligence of the respondents affects the result.

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CHAPTER SCHEME
The project report is divided into five chapters. Chapter-I deals with a brief introduction of the working capital management hierarchy. This chapter also includes a brief explanation about the introduction to the the industry in general and theoretical perspective. Chapter II provides detailed Research Design of the study, statement of the problem, scope of the study, objective of the study, Research methodology, Sources of data collection, Plan of analysis, Limitation of the study. Chapter-III provides a detailed profile of industry, company profile and product profile. Chapter-IV provides a detailed Analysis and interpretation of data. Chapter-V provides summary of findings, suggestions and conclusion.

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CHAPTER-III

22

COMPANY PROFILE

Introduction to Ultratech Industries Ltd:

The Aditya Birla Group is India's first multinational company. Global in vision rooted in India values, the group is driven by a performance ethic pegged on value creation for its multiple stakeholders. A us$ 12 billion conglomerate with a market capitalization of us$ 31.5 billion, it is anchored by an extraordinary force of 130000 employees belonging to over 30 different Nationalities. Over 24% its revenues flow from its operation across the world . The groups products & services offer distinctive customer solution. ITS 74 state of the art manufacturing units & sectorial services span India, Thailand , Laos , Indonesia, Philippines , Egypt, Canada, Australia, china, USA, UK, Germany, & Hungary.

A premium conglomerate, the Aditya Birla Group is a dominant player in all of the sectors in which it operates, among these are Viscose staple fiber, non- ferrous metals, cement, Viscose filament yarn, branded apparel, carbon black, chemical, fertilizers, sponge iron, insulators, financial services, telecom, BPO & IT services. The no.1 producer of the viscose staple fiber. The worlds largest single location palm oil producer. Asias largest integrated aluminum producer. A globally competitive fast growing copper producer. A worlds third largest producer of insulators Globally, the fourth largest producer of carbon black The worlds 8th largest producer cement & largest in a single geography Indias premier branded garment player. Among worlds best energy efficient private sector fertilizer plants. Indias second largest producer of viscose Filament yarn

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The no.2 private sector insurance company & the fourth largest asset management Company in India. Among the worlds top 15 BPO Companys & among Indias top 3 The best employer among the top 20 in Asia.

BOARD OF DIRECTORS: Mr. Kumar Mangalam Birla, chairman Mrs. Ulrtatech Birla Mr. M. L. Apte Mr. B. V. Bhargava Mr. R. C. Bhargava Mrs. Mathur Mr. Cyrill Shroff Mr. S. G. Subhramanyan Mr. Shailendra. K. Jain(whole time director) Mr. D. D. Rathi (whole time director & CFO) 24

ULTRATECH CEMENT DIVISION: PLANT LOCATION CAPACITY(In million)

Ulrtatech cement

Malkhed in Gulbarga district(Karnataka)

4.20

Vikram Cement

Jawad & Bhatinda grinding unit.(Punjab)

4.20

Ultratech Cement Aditya Cement

Raipur(chattisgarh) Shambhupura(Rajasthan)

2.06 1.50

Cement division south

Reddipalayam (Tamil nadu)

1.16

Shree Digvijay Cement. TOTAL

Sikka(gujarat)

1.08

14.20

OVERVIEW OF ULRTATECH CEMENT Ulrtatech Cement Works is a Unit of ultratech Industries Limited. Established in the year 1984 with One Unit and now it has 3 Units. Present production capacity- 4.7million tones per annum. It also has a captive power plant of 58.2 MW. It is one of the largest cement plants, at a single location, in the country

OWNERSHIP PATTERN OF ULRTATECH CEMENT WORKS The ULRTATECH CEMENT WORKS factory is incorporated under Indian companies act 1956 is having its registered office at Birlagram, Nagda (Madhya Pradesh) & works at Malkhed in Gulbarga district. The unit manufactures Portland 25

cement. The Ultratech cement factory is private ltd.co. Owned by Birla groups. Mr. Kumar Mangalam Birla is the chairman of the Aditya Birla group.

Competitors of Ulrtatech cement ACC CEMENT J.P. CEMENT AMBUJA CEMENT COROMANDAL CEMENT (Main competitor).

VISION: Customization Quality consistency Product range Cost competitiveness Employee empowerment

MISSION: To become the best cement unit in the country through human & technical excellence To foster the culture of involvement, participation, team work & innovation. To achieve excellence in all effort & activities by each one of us To produce a premium quality cement & extend best services to its customers To establish a neat clean & pollution free environment Community should perceive us a progressive well professional organization.

SOME OF THE AWARDS WON BY THIS UNIT ARE: National award for quality excellence in the Indian Cement Industry by the national council for cement & building materials for the Year 2000-01 IMC Ramakrishna Bajaj National Quality Award in 1999 Jamnalal Bajaj Uchit Vyavahar Puraskar for fair business practices in 1995 26

Rajeev Gandhi National Quality Award in 1993.

RECENT AWARDS WON BY THIS UNIT ARE: Green rating of cement industries 3 leaves out of 5 leaves by (centre for sciences and environment) in 2006 Gold Award for Green tech environment excellence Award 2006 from Green Tech Foundation, Goa on 31-08-2006. Super platinum award in manufacturing sector. From frost & Sullivan on 11-12-2006 Chairman WCM award 2007, Ultratech cement won silver award. Ultratech cement received State level Award for excellence in energy conservation & management 2008 from Maharashtra Govt. Under the aegis of directorate of mines safety & mines safety association, Karnataka, Ulrtatech cement based Overall Best performance Award in the 2007 in zone 2. Golden peacock award of Quality maintenance in 2009

PRODUCT PROFILE: The company manufactures a range of premium brands of cement: Types of cement Ordinary Portland cement 43 grade Ordinary Portland cement 53 grade Premium composite cement IRST-53 S Cement Brand name Ultratech Birla super Birla Plus Ulrtatech

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Building Strong Brands & Moving Closer

PACKING DESIGN: 1) High Density Polyethylene (HDP) 2) Paper

WEIGHT:50KG Net per bag.

QUALITY:Specification bureau of international standard as per quality system of ISO 9001:2000

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ORGANISATIONAL STRUCTURE

UNIT HEAD

FUNCTIONAL HEAD

HEAD OF DEPARTMENT (HOD)

SECTIONAL HEAD

Officers and Engineers

29

They are committed to manufacturing and supply clicker and cement of consistent quality to our customers for their total satisfaction by implementation of enhancement system of Quality, Energy. Occupational Health and Safety and Ethical Considerations in all our manufacturing Processes through: Effective operational management by carrying out timely technology up-gradations. Innovations and optimum of all employees to attain cost competitiveness. Commitment to comply with requirements of all applicable international management system standards and other Regulatory/Legislative requirements. Continual improvement in the effectiveness of all management system standards related to Quality, Environment, Energy, Occupational Health and Safety and Social performance by setting-up appropriate objectives. Continous employee development and uplifment of surrounding community to improve their satisfaction.

STAFF Quantization set up Objectives: To define roles and responsibilities of an employee in the organization. Career planning and succession planning of employees. To ensure a flat organizational structure, To analyze the manpower requirement. To define hierarchy, level of authority, vertical and horizontal relationships.

Responsibility: Unit HR head in consultation with unit head.

Coverage: All staff and officersEXISTING STRUCTURE 30

Gradation: In order to define position, application of perquisite structure and to take care of career aspiration of employees, a grade structure has been adopted. Levels: To ensure a flat organizational structure and to take care of all the activities, levels have been identified and demarcated in the existing structure, which is as follows:

Titles L-1 L-2 L-3A L-3B L-4 L-5 L-6A L-6B L-7

Titles Unit Head Functional Head Line Head Department Head Section Head Coordinator Support Staff Multi Craft Technicians/ peon cum massagers drivers etc Workmen

Totally there are 350 permanent workers in Ultratech cement, at the various departments.

An there are 354 staff including managerial employees There are 33 apprentices under the training for one year, who are ITT holders. There are 845 contract labours under 52 contractors. There are 60 security guards. Totally there are nearly 1800 employees in the organization.

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PRODUCTION DEPARTMENT: RAW MATERIALS REQUIRED FOR CEMENT MANUFACTURING.

Limestone Iron ore Coal Chemical gypsum Alumnus Laterite Fly ash

CEMENT MANUFACTURING PROCESS Mining & Crushing. Stacker/Reclaimer. Raw mix grinding. Coal crushing & grinding. Clinker cooling / storage. Cement Grinding. Packing & dispatch.

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Cement Manufacturing Process Chart

Preheated Pre Heater

Silo
Limestone Crusher Crusher

Stack Raw Mill Reclaime L/s Hopper r Stacker &

Reclaimer

Kiln Cooler Section

Auto Packer

Cement Mill

Cement Silo Packer

Cement Silo

Cement Mill

Clinker Stock Pile

Clinker stockpile

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CEMENT MANUFACTURING PROCESS: Stage I mining and crushing: The limestone is extracted from the earths crust by the process of blasting. After blasting limestone boulders are transported to the crushing chit and crushed to the required size. The crushed limestone is then transported through belt conveyer to the stacker-reclaimer section. Stage-II Stacker/Reclaimer: The stacker-reclaimer is used for pre blending of crushed limestone. Reclaimer picks up the required quality of crushed limestone form the stock pile and feeds into the raw mill hopper through belt conveyor. Stage-III Raw mix grinding: There are different hoppers for the storing of crushed limestone, iron ore and Alumnus Laterite. The stored raw materials from the hopper are proportioned and fed to roller press and subsequently to mill for fine grinding of required fineness. The mix containing 93-98% Limestone 3-4% aluminum laterite, 2-3% Hematite and 1-3%fly ash which is to be missed in the limestone stock pile itself. The output of the mill grinding is stored in raw meal silo. Stage-IV coal crushing and grinding: The coal is fed into the coal crusher from where the crushed coal is stored in the coal stocker and reclaimer. This coal (used as fuel for burning) is crushed, pulverized in vertical roller mill (ball mill and fed into the kiln along with primary on through burner pipe. Stage-V Clinkerization: From the raw mill silo the material is extracted and conveyed to the pre-heater section. The powdered homogenized raw mill from the silo is fed to the kiln passes through preheaters where raw mill gets partly claimed and converted into clinker at a temperature of 34

about 13001400 degree centigrade in the sintering zone of the kiln. The material is claimed and heated in pre-heater and claimed by utilizing kiln waste gases and additional coal finding. This partially claimed material enters into the kiln where the remaining 8% of the calcinations and Clinkerization takes place in the kiln and clinker is discharged into the cooler.

Stage-VI Clinker cooling/ Storage: The clinker from the kiln is cooled in the cooler section and is transported to the clinker stockpile by deep pan conveyor (DPC) form the clinker stock pile, the clinker is transported to cement mill hopper though Deep Bucket Conveyor (DBC). Stages VII cement grinding: The clinker and gypsum are stored in the respective hopper. The clinker and gypsum are proportioned and fed to roller press subsequently to ball mill for fine grinding of required fineness. The proportion contains 97-98% 2.3% Gypsum. The fine ground material is as cement. Stage VIII Packing and dispatch: The cement from the mill is transported to storage silo and from there the cement is conveyed to packing plant and is packed in 50kgs bags by rotary packing machine and then directly loaded into trucks/rail rakes and transported to different locations in the country

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HR DEPARTMENT: HR.,P&A Dept at Ultratech Cement Core Activities Taken care by HR,P&A Dept in Ulrtatech Cement are: HR JR & Legal Security, Admin & Rural Development (KJST) Hospital

HR Dept at Ulrtatech Cement Functions of HR Department: Recruitment Establishment Performance & Talent Management Training & Development Corporate Initiatives

Recruitment Process at RC JRF will be sent to the Depts. Dept informs the required Job Profile and Education. Forward to Unit Head for approval by FH-HR On approval ad will be released Sources of applicants:

a) Internal Recruitment-Poornata The Employee has to complete 33 months of Service in one organization before applying for other position in AVB Group b) Job Portals: Naukri.com, Jobstreet.com c) Monsterindia.corn 36

d) Campus Recruitment e) Walk in Interviews f) Consultancies g) Paper Ads Selection Process at RC Interviews will be scheduled for the short listed Candidates a) 1st Round of Interview by Section/Dept. Heads b) 2nd Round of Interview by Functional Heads c) 3rd final round of Interview by Unit Head Payroll Process in UC Salary for the current month will be paid to the employees on 1st Day of the Next Month Attendance will be Calculated from 22 of Previous Month to 21st of the Current Month

37

 Leave Rules-Ultratech Cement All the employees are eligible for leave, after completion of Six Months of Continuous Service as detailed below.

38

Corporate Initiatives ABG has initiated several Schemes for the benefit of the employees and it is a continuous process. Recent Corporate initiatives are: a) Variable Pay: A Portion of the profit will be, given to the employees Officer and above are eligible for the same. b) Med claim Policy: All staff members and their dependants (to maximum of six members) are covered for a minimum amount of Rs.2,00,000/-. c) Nescient: All Officer and above are eligible to opt for this Scheme. Under this Scheme, Employee has to pay 60% of the premium and the rest will be borne by the Company. Minimum Insurance is for Rs.10 lacks d) Scholarship Programmed: Scholarship amount is Rs. 30,000/-per annum per student, subject to a maximum of two children in a family. This is applicable for the Dy.Managers and above. Job Analysis Process Job Analysis Job Description Job Equalization Job Band Performance Reward

Organizational Health Survey (0 H S) Survey by reputed agency Survey Report Communication of Reports Taskforce Formation 39

Task Force Recommendation Implementation of Recommendations

Training & Development Training Objectives Competency development of employees at all levels based on Training Need Identification. Training Effectiveness to be sustained to 90 Percent. Emphasis on application oriented programs to improve functional efficiency. Impart more behavioral programs for attitudinal change/team working.

Training on Functional Needs (Discipline wise Requirement) Behavioral Needs (Conduct/Perform. requires.) Organizational Needs (ISO, WCM,SA-8000, Safety EMS)

Training Hours Staff - 35 Hours Workmen - 14 Hours

Training Execution 65-70% programs through Internal Faculty. 15-20% programs through External Faculty. 05-10% programs through External Programs. Foundation courses through Virtual Campus

Training Evaluation Feedback by the participants Training Effectiveness Review System (TERS) 40

Performance Management Employee is appraised on a Five Point Scale, they are: a) Non Performer b) Performer c) Consistent Contributor d) High Achiever e) Exceptional Achiever

FINANCE DEPARTMENT Money makes many things happen, goes the saying and obviously financial management is the one of the four important areas of the management. The major objective of any business firm is to make profit for its proprietor, apart from the primary objective of enhancing long-term shareholder value. To reach this objective, the firm purchases, organizes and manages various factors of production, and then produces the output to sell, and all these processes require funds. Finance is, therefore, said to be the circulatory system of the economic body of the firm. Financial management is the administrative function, which relates to management of cash and credit. The central feature of the financial department is the formulation of the firms strategy in determining the most effective use of funds and selecting the most favorable sources of additional funds that the firm would require in future. Function of financial management The function and responsibility of the finance and account wings include the following. Analyze the financial results of all operation, report the facts to management and make recommendations concerning future operations. Develop the best plans to obtain the external funds needed

41

Determine the financial resource required to meet the corporation operating and capital expenditure program. Establish and maintain a system of financial control governing the allocation and use of the funds. Planning and forecasting Modification of Data

Mines Department: Ulrtatech cement limestone mine was started in the year 1983. And is one of the largest single location limestone mines in India, having a total lease area of 1813 acres with reserves lasting up to more than 100 years. The Mineral limestone is the main captive source of raw material for the manufacture of various grades of cement. The deposit exploitation is planned by opencast method using latest state of art technology in its working. The 5 year plan designed is duly approved by Indian bureau of mines. All the limestone is used in the manufacture of cement with suitable blending arrangement along with stacker re-claimer system being used to monitor cao & sio2 variations. The major material which helps in a systematic blast is the ammonium chloride; mixed with diesel oil. The raw dust is used in a small proportion for controlling the blast. In this particular area, the limestone beds of uniform quality are found up to 50 to 60 m from OGL. Technology Adopted: Two nos of Hageman L&T Make: 1200 TPH in pit crushers-deriving the optimum advantage of low lead vis--vis considerable cost savings. Sophisticated hydraulic earth movers (total HP more than 1500) with matching parameters to achieve optimum productivity. Well designed blasts with optimum charge ratio, with a proper blend of ANFO, slurries, & boosters, Noels. Sequential blasting & vibrating, monitoring machines.

42

A combination of good blast whole design, judicious use of explosive blend & charge ratio, millisecond detonators coupled with sequential blasting machine, vibration monitoring machines etc. gives an ideal & controlled blast with extremely good fragmentation.

Extent of area in which mining is finished -20.5OHCT. Land use pattern towards mining -90 HCT As per the conceptual plan, the final area excavated is 700 hector @ the end of mining

Equipment used at mining: The Excavators Pay loaders Dumpers Crushers Pump sets Drills

CPP DEPARTMENT: (CAPTIVE POWER PLANI)

43

In Ultratech Industry there are three unit of captive power plant. First unit has been established in 1992. Capacity of this captive power plant is 52.8mw. All power produced by this power plant is used in cement power plant. In this plant as a fuel, coal is used. The efficiency of the coal is only50%. The high grade coal is not used because it is not available in our country & it is also very costly. To avoid the corrosion, scaling, & damage the machine only pure water is used in the captive power plant. There are several steps to produce the power by this captive power plant. Water pre treatment scheme Demineralization of the water Steam Generator Turbine Scheme

STEP 1: For captive power plant water is brought from the kagina power .This water contains dissolved solid, dissolved gas, suspension material as impurity. So for removing this impurity, we use the water pre treatment scheme. In this scheme water is mixed with alumnus & soda ash mix tanker. After that it is stored in water tanker where alumnus & soda ash react with dissolved solid & give precipitate of aluminum hydroxide which is settled down on the bottom of the tanker. Stage 2: For Demineralization the water ion exchange process is used. The caution exchange unit contains a strongly acidic exchanger in a regenerated form. The exchange takes place the caution in water in exchange for hydrogen ions which it gives up. The caution exits in the form of chloride carbonate salts which get converted to their equivalent acids.

44

Stage 3: For boiling the water, demineralization water is used. First of all by claimer, coal is fallen down to crusher then after crushing this coal came to the post screen. From this post screen only less than 6mm diameter coal passes into the bunker & more than 6mm diameter coal again go to crusher. From bunker, coal comes to the coal feeder. Stage 4: Generated steam comes to the turbine and it rotates the shaft. Since shaft is connected to steam generator which is not used by turbine goes to the condenser purpose. STORES DEPARTMENT The store department play vital role in the operation of any manufacturing industries. The important purpose served by stores department is to provide proper and systematic services to various departments. Functions of stores department: Receive the material like packing raw materials, and other items. Provide the adequate and proper storage after the Inspection of item. Meet the demand at consuming department by Proper issue and account for the consumption. To minimize that obsolesce surplus and crap Through proper codification and preservation and handling. To ensure, good house keeping so that the material Handling, material preservation stocking, receipt and issue can be done adequately. To almost on verification and provide supporting Information for the selective purchase action.

45

Method adopted to dispatch material to various A department is FIRST IN FIRST OUT (FIFO) the nursing materials are kept for six months in two stores deportment. System and advance adopted in store The stores are concerned with receipt issue and storage of materials at the store deportment receives a copy of the production order from production control department these are maintained in chronological sequence for guide reference. The materials accounted in receiving stores and bills are prepared thus the receiving stores prepared report. A separate place is available to keep the rejected materials to be returned back to that particular supplier or sub contractor. The store department is handed by single with the post of store supervisor.

46

INDUSTRY PROFILE
The cement sector has played a vital role in reviving up the Indian economy by maintaining an impressive rate of growth in the last three to four years. In the calendar year 2006, the industry witnessed an imposing growth of 11.3 per cent as compared to 9.4 per cent in the preceding year, with capacity utilization well over 90 per cent. It could have been even higher, had infrastructure growth been up to the expected level. Housing sector has remained the largest source for cement demand The industry has sustained a growth of 8 per cent for the last one-and-a-half decades. This growth is both quantitative and qualitative, as our cement is at par with the best in the world. India maintained its position as the second largest cement producer in the world with an installed capacity of 114.2 million tones. Indian cement further enhanced its status in the global market, when the export of cement and clinker crossed the 10 million-ton mark last year.4 Cement industry is one of the major industries contributing substantially to Indias industrial and economic development. Just as cement (product) lays the firm foundation of any good construction, similarly the cement industry lays the firm foundation of modern economy, which is important for all developmental plans. That is why the per capita consumption of cement in a country is regarded as an index of its progress. Cement being a key infrastructure industry, the first cement company was established in Madras (Chennai) in 1904. At present cement industry is more than 94 years old. During the first half of the 20 Century India was plagued by an extremely slow growth rate and not until the dawn of independence in the era of planning the importance of the core sector industry cement to national development was the core sector industry cement to national development was recognized. On 24 May 1961 Cement Manufacturing Association (CMA) was formed in India. The period during 1982-85 was a boom period for the industry. By 1992 it had attained fourth position among the cement producing countries, behind only the USA, China, and Japan. 47

The year 1990-92 was best for the cement producers, but in 1992-93, it had bad fortunes the demand for cement, which was 8% in 1991, declined to zero in 1992-93. The cement has been decontrolled from price and distribution on 01 March 1989 and delicensed on 25 July 1991. However, the performance of the industry and prices of cement are monitored regularly. The constraints faced by the industry are reviewed in the Infrastructure Coordination Committee meetings held in the Cabinet Secretariat under the Chairmanship of Secretary (Coordination). The Cabinet Committee on Infrastructure also reviews its performance.

CURRENT SCENARIO
The Indian cement industry is the second largest producer of quality cement, which meets global standards. The cement industry comprises 130 large cement plants and more than 300 mini cement plants. The industry's capacity at the end of the year reached 188.97 million tons which was 166.73 million tons at the end of the year 2006-07. Cement production during April to March 2007-08 was 168.31 million tons as compared to 155.66 million tons during the same period for the year 2006-07.Despatches were 167.67 million tons during April to March 2007- 08 whereas 155.26 during the same period. During April-March 2007-08, cement export was

3.65 million tons as compared to 5.89 during the same period. Cement industry in India is currently going through a consolidation phase. Some examples of consolidation in the Indian cement industry are: Gujarat Ambuja taking a stake of 14 per cent in ACC, and taking over DLF Cements and Modi Cement; ACC taking over IDCOL; India Cement taking over Raasi Cement and Sri Vishnu Cement; and Grasim's acquisition of the cement business of L&T, Indian Rayon's cement division, and Sri Digvijay Cements. Foreign cement companies are also picking up

stakes in large Indian cement companies. Swiss cement major Holcim has picked up 14.8 percent of the promoters' stake in Gujarat Ambuja Cements (GACL). Holcim's acquisition has led to the emergence of two major groups in the Indian cement industry, the Holcim-ACC-Gujarat Ambuja Cements combine and the Aditya Birla group through Grasim Industries and Ultratech Cement. Lafarge, the French cement major has acquired 48

the cement plants of Raymond and Tisco. Italy based Italcementi has acquired a stake in the K.K. Birla promoted Zuari Industries' cement plant in Andhra Pradesh, and German cement company Heidelberg Cement has entered into an equal joint-venture agreement with S P Lohia Group controlled Indo-Rama Cement.

Different types of cement that are produced in India are:

Ordinary Portland cement (OPC):

OPC, popularly known as grey cement, has 95 per cent clinker and 5 percent gypsum and other materials. It accounts for 70 per cent of the total consumption.

Portland Pozzolana Cement (PPC):

PPC has 80 per cent clinker, 15 per cent pozzolana and 5 per cent gypsum and accounts for 18 per cent of the total cement consumption. It is manufactured because it uses fly ash/burnt clay/coal waste as the main ingredient.

White Cement:

White cement is basically OPC - clinker using fuel oil (instead of coal) with iron oxide content below 0.4 per cent to ensure whiteness. A special cooling technique is used in its production. It is used to enhance aesthetic value in tiles and flooring. White cement is much more expensive than grey cement.

Portland Blast Furnace Slag Cement (PBFSC):

PBFSC consists of 45 per cent clinker, 50 per cent blast furnace slag and 5 per cent gypsum and accounts for 10 per cent of the total cement consumed. It has a heat of hydration even lower than PPC and is generally used in the construction of dams and similar massive construction.

Specialized Cement:

Oil Well Cement is made from clinker with special additives to prevent any porosity. 49

Rapid Hardening Portland cement:

Rapid Hardening Portland Cement is similar to OPC, except that it is ground much finer, so that on casting, the compressible strength increases rapidly.

Water Proof Cement:

Water Proof Cement is similar to OPC, with a small portion of calcium stearate or nonsaponifibale oil to impart waterproofing properties.

PROCEDURE
The main raw materials used in the cement manufacturing process are limestone, sand, shale, clay, and iron ore. The main material, limestone, is usually mined on site while the other minor materials may be mined either on site or in nearby quarries. Another source of raw materials is industrial by-products. The use of by- product materials to replace natural raw materials is a key element in achieving sustainable development.

Future Trends

The cement industry is expected to grow steadily in 2009-2010 and increase capacity by another 50 million tons in spite of the recession and decrease in demand from the housing sector.

The industry experts project the sector to grow by 9 to 10% for the current financial year provided India's GDP grows at 7%.

India ranks second in cement production after China. The major Indian cement companies are Associated Cement Company Ltd (ACC), Grasim Industries Ltd, Ambuja Cements Ltd, J.K Cement Ltd and Madras Cement Ltd.

The major players have all made investments to increase the production capacity in the past few months, heralding a positive outlook for the industry.

The housing sector accounts for 50% of the demand for cement and this trend is expected to continue in the near future. 50

CHAPTER-IV

51

DATA ANALYSIS AND INTERPRETATION Questionnaire of executives

1) Yearly evaluation of the performance of the candidate in the system is? Factor Very effective Effective Fairly effective Ineffective Total Percentage 8.33% 66.67% 25% 0% 100%

0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 8.33%

66.67%

25%

0% Very effective effective Fairly effective ineffective

ANALYSIS AND INTERPRETATION In the current PMS (performance management system) the performance of the employee is evaluated yearly and the response of employees point out that 8.33% consider it very effective, 66.67% consider it effective, 25% consider it fairly effective and no one find it as ineffective. So after analyzing I find out that maximum employees are in favour of yearly evaluation of performance.

52

2) Is there any scope present in the current performance management system for accomplishing of the group objective? Factor High Reasonably well Partially Not sure Total Percentage 8.33% 50% 33.34% 8.33% 100%

Not sure, High, 8.33% 8.33% Partially, 33.34% Reasonably well, 50%

High Reasonably well Partially Not sure

ANALYSIS AND INTERPRETATION Every individual is interested in achieving its own individual objective so I tried to find out that whether a particular system helps in achieving group objective and with reference to the PMS employee response were as follow 8.33% considered it high, 50% considered it as reasonably well but 33.34% were partial and 8.33% were not sure. So, maximum employee had positive view about the PMS regarding group objective.

53

3) The manual way involved in filling the form in the performance management system is? Factor Very effective Effective Fairly effective Ineffective Total Percentage 0% 58.33% 41.67% 0% 100%

Ineffective, 0.00% Very effective, 0%

Fairly effective, 41.67%

Very effective Effective Fairly effective Ineffective

Effective, 58.33%

ANALYSIS AND INTERPRETATION

In the PMS the employees are required to fill the PMS form manually which according to employee 58.33% consider it effective, 41.67% consider it fairly effective and no employee consider it very effective neither ineffective. Thus maximum response was toward manual method of filling the form.

54

4) The extent of involvement in setting the key performance area (KPA) in the current performance management system for evaluating performance is?

Factor High Satisfactory Average Not satisfactory Total

Percentage 33.34% 66.66% 0% 0% 100%

70.00 % 60.00 % 50.00 % 40.00 % 30.00 % 20.00 % 10.00 % 0.00 %

66.66 %

33.34 %

0.00 % High

0.00 %

Satisfactory

Not Average satisfactory

ANALYSIS AND INTERPRETATION

In the PMS the performance of the employees are evaluated with reference to the KPAs (key performance area) which are decided and set after the discussion with the employees and the employees views regarding the involvement in the PMS in setting KPAs are 66.66% consider it satisfactory, 33.34% consider it high but employee find it as average and not satisfactory. Thus, the maximum employees are satisfied.

55

5) The marking system adopted in the current performance management system for evaluating performance is? Factor Very effective Effective Fairly effective Ineffective Total Percentage 8.33% 75% 16.67% 0% 100%

0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0

75%

8.33%

16.67% 0%

Effective Very effective Fairly effective Ineffective

ANALYSIS AND INTERPRETATION Earlier in the ULTRATECH CEMENTS LTD grading system was in operation but now marking system have been adopted and 75% employees consider the marking system to be effective and 16.67% consider it to be fairly effective but 8.33% consider it to be very effective and no one find it to be ineffective. Thus, maximum employees are satisfied with the change from the grading system to the marking system.

56

6) The time gap of 6 months provided in re-evaluating the target is? Factor More than sufficient Sufficient Reasonable Not sufficient Total Percentage 8.33% 58.33% 33.34% 0% 100%

0.7 0.6 0.5 0.4 0.3 0.2 0.1 0

58.33% 33.34% 8.33% 0%

ie n

bl e

ie n

fic

na

fic

su f

so

Su f

th a

R ea

ANALYSIS AND INTERPRETATION

The time gap provided for revaluating the target is considered to be sufficient by 58.33% employees and 33.34% consider it to be reasonable but 8.33% find it more than sufficient and no employee considers it as insufficient. As I observe than more than 50% employees feels than time gap of 6 month is sufficient thus one can say that PMS is effective with regard to this parameter.

M or

57

ot s

uf

fic

ie n

7) The performance management system facilitating the two way communication between the reporting officer and candidate is?

Factor Highly motivating Reasonably well motivating Not very well motivating De-motivating Total

Percentage 16.67% 83.34% 0% 0% 100%

demotivatin g, 0%

not very well motivating, 0% highly motivating, 16.67%

highly motivating reasonably well motivating not very well motivating

reasonably well motivating, 83.34%

demotivating

ANALYSIS AND INTERPRETATION The two way communication involved in evaluating the performance of the candidate found to be reasonably well motivating by 83.34% employees whereas 16.67% find it highly motivating and it is neither not very well motivating nor de-motivating. As in the view of the employees with regard to the flow of communication between the reporting officer and the employee is rated high, thus one can say that the PMS facilitates two way communication.

58

8) Does the competency identify of the candidate in the performance management system correlates with the work requirement? Factor Absolutely Partially Reasonably well Not realistically Total Percentage 16.67% 66.67% 16.67% 0% 100%

Reasonably well

80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00%

66.67%

16.67% 17%

Partially

ANALYSIS AND INTERPRETATION 66.67% were in favour that the identification of the competencies for appraising the performance of the candidate in the PMS correlates with their work requirement while 16.67% consider it to be absolutely and reasonably well and no candidate find it to be not realistically. As one observe that more than 50% employees find the PMS to be effective in the identification of the competencies so they are satisfied with the PMS with respect to this parameter.

Absolutely

59

Not realistically

0%

9) Does the key performance area (KPA) setting in the performance management system correlates with your priority for work? Factor Absolutely Partially Reasonably well Not realistically Total Percentage 25% 41.67% 25% 8.33% 100%

45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00%

41.67%

25.00%

25% Series1 8%

ia lly

bs ol ut

w el l

so n

R ea

ANALYSIS AND INTERPRETATION

41.67% employees hold a partial view regarding the correlation of KPAs with their work priority whereas 25% employees consider it absolutely and realistically well and 8.33% consider it to be not realistically. PMS is not effective with regard to the parameter of correlation of KPAs with their priority for work as less number of employee hold a positive view about it.

60

ot r

ea l is tic

ar t

ab ly

al ly

el y

10) Does the identification of the potential of the candidate in the performance management system correlates with the work requisite?

Factor Absolutely Partially Reasonably well Not realistically Total

Percentage 25% 41.67% 25% 8.33% 100%

60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00%

50.00% 33% 16.67% 0% Absolutely Partially Reasonably well Not realistically

ANALYSIS AND INTERPRETATION In the PMS the potential of the candidate is identified for the purpose of the evaluation of the performance and 50% of the employees hold a view that it partially correlates with their work requirements and 33.34% consider it to be reasonably well but 16.67% find it to be absolutely and no employees was in favour of treating as not realistically. Thus, after analyzing it one can say that the potential of the candidate correlates with the work requirement to some extent.

61

QUESTIONNARIE OF EMPLOYEES

Table - 1

Table showing, Are you aware with the performance appraisal management system in your organization?

Factor

No. of Respondents

Percentage

Yes

40

80

No

10

20

Total

50

100

Analysis:
From the above table, it could be interpreted that the out of the 50 respondents, 40 of them were aware with the performance appraisal management system in organization, 10 of them not aware of performance appraisal management system.

62

Chart - 1

Chart showing, Are you aware with the performance appraisal management system in your organization?

AWARENESS ABOUT PERFORMANCE APPRAISAL

NO 20%

YES 80%

Interpretation:
From the above chart, it could be observed that, 80% of respondents aware of performance appraisal management system, 20% of them not aware of performance appraisal management system.

Table - 2 63

Table showing, in your opinion what is the degree of transparency in the appraisal system?

Factor

No. of Respondents

Percentage

Low

20

40

Moderate

20

40

High

10

20

Total

50

100

Analysis:
From the above table, it could be analyzed that the, out of 50 respondents, 20 of them stated that the degree of transparency in appraisal system was low, 20 of them stated that it was moderate and 10 of them stated that it was high.

Chart - 2 64

Chart showing, in your opinion what is the degree of transparency in the appraisal system?

DEGREE OF TRANSPARENCY IN APPRAISAL SYSTEM

HIGH 20% LOW 40%

MODERATE 40%

Interpretation
From the above chart, it could be interpreted that the, most of the employees are not satisfied with the degree of transparency in performance appraisal.

Table - 3

65

Table showing, are you satisfied with the present appraisal system?

Factor

No. of Respondents

Percentage

Yes

35

70

No

05

10

No comment

10

20

Total

50

100

Analysis:
From the above table, it could be analyzed that the out of 50 respondents, 35 of them stated that it was satisfied with the present appraisal system, 5 of them stated that it was not good and 10 of them stated that it was no comment about present appraisal system.

Chart - 3

66

Chart showing, are you satisfied with the present appraisal system?

SATISFACTION WITH PRESENT APPRAISAL SYSTEM

NO COMMENT 20% NO 10%

YES 70%

Interpretation:
From the above chart it could be interpreted that the, 70% of respondents were satisfied by present appraisal system, 10% of them stated that it was not satisfied, 20% of them responds no comment of present appraisal system.

Table - 4 Table showing, do you get any motivation by the appraisal? 67

Factor

No. of Respondents

Percentage

Yes

40

80

No

05

10

No comment

05

10

Total

50

100

Analysis:
From the above table, it could be analyzed that the out of 50 respondents, 40 of them stated that, they were get motivation by the appraisal , 5 of them stated that it was not motivated and 05 of them stated that it was no comment.

Chart - 4 Chart showing, do you get any motivation by the appraisal? 68

GETTING MOTIVATION BY APPRAISAL

NO COMMENT 10%

NO 10%

YES 80%

Interpretation:
From the above chart, it could be analyzed that the, on basis of above data 80% employees were highly motivated by present appraisal system.10% respondents stated that it was not motivated, 10% of respondents stated no comments on present appraisal system.

Table - 5

69

Table showing, whether appraisal should be done:

Factor

No. of Respondents

Percentage

Annually Half yearly

20

40

30

60

Total

50

100

Analysis:
From the above table, it could be analyzed that the out of 50 respondents, 20 of them stated appraisal should be done annually. 30 of them stated that appraisal should be done half yearly.

Chart - 5

70

Chart showing, whether appraisal should be done:

APPRAISAL SHOULD BE DONE

ANNUALLY 40% HALF YEARLY 60%

Interpretation
From the above chart, it could be interpreted that the, 60% employees say that performance appraisal should be done half- yearly. This will help to get better hold on the employee and bring their efficiency.

Table - 6 Table showing, do you think that different departments should have different appraisal forms? 71

Factor

No. of Respondents

Percentage

Yes

25

50

No

15

30

No comment

10

20

Total

50

100

Analysis:
From the above table, it could be analyzed that the, out of 50 respondents, 25 of them think that different departments should have different appraisal form, 15 of them stated no and 20 of them stated that no comments on the different departments should have different appraisal form.

Chart - 6

72

Chart showing, do you think that different departments should have different appraisal forms?

DIFFERENT DEPT. SHOULD HAVE DIFFERENT APPRAISAL FORMS

NO COMMENT 20% YES 50%

NO 30%

Interpretation:
From the above chart, it could be interpreted that the, 50% employees say that different department should have different appraisal form, 30% stated no and 20% stated no comments.

Table - 7

Table showing, do you think there is clarity in the appraisal system? 73

Factor

No. of Respondents

Percentage

Yes

30

60

No

20

40

Total

50

100

Analysis:
From the above table, it could be analyzed that the, out of 50 respondents, 30 of them stated that there was clarity in the appraisal system. 20 of them stated no clarity in the appraisal system.

Chart - 7 Chart showing, do you think there is clarity in the appraisal system?

74

CLAIRITY IN THE APPRAISAL SYSTEM

NO 40%

YES 60%

Interpretation
From the above chart, it could be interpreted that the, 60% employees say that there is clarity in the performance appraisal system. Some of the employees stated no clarity in the performance appraisal system.

Table - 8 Table showing, whether direct feedback associated with the appraisal system?

75

Factor

No. of Respondents

Percentage

Yes

05

10

No

05

10

No comment

40

80

Total

50

100

Analysis:
From the above table it could be analyzed that the, out of 50 respondents, 5 of them stated that positively direct feedback associated with the appraisal system, 5 of them stated that negatively, and 40 of them stated no comments of direct feedback associated with the appraisal system.

Chart - 8 Chart showing, whether direct feedback associated with the appraisal system?

76

FEEDBACK ASSOCIATED WITH APPRAISAL SYSTEM

YES 10%

NO 10%

NO COMMENT 80%

Interpretation From the above chart, it could be interpreted that the, most of the employees dont want to say anything regarding the direct feedback associated with appraisal system.

Table - 9 Table showing, do you know your job profile very well?

77

Factor

No. of Respondents

Percentage

Yes

45

90

No

05

10

Total

50

100

Analysis:
From the above table, it could be analyzed that the, out of the 50 respondents, 45 of them stated that they were know about job profile very well. 05 of them stated that they dont know about their job profile.

Chart - 9 Chart showing, do you know your job profile very well?

78

No 10%

Percentage

Yes 90%

Interpretation
From the above chart, it could be interpreted that the, most of employees know very well about their job profile.

Table - 10 Table showing, do you talk freely about your performance appraisal with your boss? 79

Factor

No. of Respondents

Percentage

Yes

30

60

No

10

20

No comment

10

20

Total

50

100

Analysis:
From the above table, it could be analyzed that the, out of 50 respondents, 30 of them stated that they were talk freely about performance appraisal with their boss, 10 of them stated that no, and 10 of them said that dont want to say about freely talk with their boss about performance appraisal system.

Chart - 10 Chart showing, do you talk freely about your performance appraisal with your boss? 80

TALK FREELY WITH BOSS ABOUT PERFORMANCE APPRAISAL

NO COMMENT 20% YES 60% NO 20%

Interpretation:
From the above table, it could be interpreted that the, 60% of employees talk freely about performance appraisal with their boss.

Table - 11 Table showing, should counseling method be used after completion of the appraisal cycle/period? 81

Factor

No. of Respondents

Percentage

Yes

40

80

No

10

20

Total

50

100

Analysis:
From the above table, it could be interpreted that the, out of 50 respondents, 40 of them stated that they must and should used counseling method after completion of the appraisal cycle/ period.10 of them stated that not to used counseling method after completion of the appraisal cycle/period.

Chart - 11 Chart showing, should counseling method be used after completion of the appraisal cycle/period? 82

COUNSEILING METHOD USED AFTER COMPLETION PERFORMANCE APPRAISAL

NO 20%

YES 80%

Interpretation
From the above chart, it could be interpreted that the, 80% employees says counseling method should be used after completion of the performance appraisal.

Table - 12 Table showing, do you think that there is a need of training to the appraiser?

83

Factor

No. of Respondents

Percentage

Yes

35

70

No

15

30

Total

50

100

Analysis:
From the above table, it could be analyzed that the, out of 50 respondents, 35 of them stated that there is need of training to the appraiser and 15 of them stated that no need of training to the appraiser.

Chart - 12 Chart showing, do you think that there is a need of training to the appraiser?

84

NEED OF TRAINING TO THE APPRAISER

NO 30%

YES 70%

Interpretation
From the above table it could be interpreted that the , majority of respondents stated that there is a need of training to the appraiser (70%) and 30% stated that no need of training to the appraiser.

Table - 13 Table showing, are you satisfied with the monetary linkage of appraising system, as a bonus?

85

Factor

No. of Respondents

Percentage

Yes

30

60

No

20

40

Total

50

100

Analysis:
From the above table it could be analyzed that the, out of 50 respondents, 30 of them stated that they satisfied with the monetary linkage of appraising system, as a bonus and 20 of them stated that they not satisfied about monetary linkage of appraising system, as a bonus.

Chart - 13 Chart showing, are you satisfied with the monetary linkage of appraising system, as a bonus?

86

SATISFACTION WITH MONETARY LINKAGE OF THIS SYSTEM

NO 40%

YES 60%

Interpretation
From the above chart, it could be interpreted that the, 60% of employees are satisfied with monetary linkage of the appraisal system and 40% of them not satisfied with monetary linkage of the appraisal system.

CHAPTER-V
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SUMMARY OF FINDINGS:
During the study of the project I observed different functions of the HR Department. I got the knowledge about the different types of HR Policies functioning in the organization. I also got knowledge about how the organization is following their values in a very sincere way. 88

Majority of the employees are satisfied with the performance appraisal system they receive for their present job, from the ultratech cement ltd. The courses of appraisal are relevant to the needs of the employees. The supervisors take efforts to identify the strengths and weaknesses of the employees. Employees are getting the performance appraisal strategy at the right time required. There is no system to approach the higher authorities when they think they need performance appraisal system. Employees find it easy to apply the performance appraisal system they receive in their work. Employees are given training when they are assigned additional responsibility. Present performance appraisal strategy methods are effective. New recruits are given effective induction programs to groom themselves in the organization. The motivation levels are quite high. The HR team offers help as and when needed inspite of busy schedule.

SUGGESTIONS

After studying the companys PMS system we have drawn some measures for more effective and result oriented working of the PMS policy. Following are some suggestions, which were drawn after the study. 89

To be made truly objective Implementation should be in the true spirit of PMS There is a strong need for enhanced transparency There should be proper and complete feedback A copy of PMS shall be given to the employee after signature of the HOD Marks should be integrated with other dept. where work is related with outcomes The targets of reporting officer & subordinates shall be clearly identified/ separated. It is felt that there is no difference in the targets. Individual, reporting officer & reviewing officer all sit together for PMS instead of the present two tier system Matching of PMS of individual & reporting officer Moderation may be on scientific manner To be followed in letter & spirit after coming out from past knowledge and experience of old PMS. Prepare Dos & Donts for new PMS Prepare the table of significant changes to make it more appreciative by all The ideology needs to translated to practices in the organization In spite of defined KPA/ KRA marks are given on % of outstanding criteria (which is 20% presently). Does this mean only 20% employees in ULTRATECH CEMENTS LTD are outstanding & balances are less? This needs to be changed for the proper implementation of PMS system in true spirit.

PMS is fine but promotions based on this is not Once final scores are given no one tell/ communicates the person cutting of scores.

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RECOMMENDATIONS

Earlier in ULTRATECH CEMENTS LTD the method employed to appraise the performance of employees was grading system but now marking system has been implemented in the PMS (performance management system). That is why we conducted a survey through the means of filling the questionnaire by the employee to identify to what extent it is effective and after analyzing the viewpoint and feedback of the employees we found it to be effective. Though there are certain shortcomings in the system that can be overcome to some extent by making certain changes in it. So few of my suggestion are as follows Presently in the PMS the performance of the candidate is evaluated annually as a result employees are not highly satisfied with it so the evaluation can be conducted half yearly so that employees can get to know the area in which they are lacking so that get the training at the correct time and also get to know their productivity and efficiency as a result their performance improve at a faster rate.

The PMS should provide sufficient scope to the employee for accomplishment of their group objective along with their individual objective by evaluating their performance in a group because achievement of group objective is also important.

The annual way of filling the form or performance report in the current PMS should be replaced by online way of filling the form as it has few inherent advantages such as less time consuming, efficient and effective way of utilizing resources like human being, stationary, less paper pilling etc.

The competencies identified by the reporter which correlates with the work should be set after detailed analysis of the work and in consultation with the employee and there should be frequent evaluation and regular discussion with the employee to identify any flaws in the competencies and thereby make the suitable changes.

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In the PMS potential of the candidate identified should correlates with the work requirement and in order to accomplish it the work should be assigned to the individual by identifying his potential, interest area so that there is not much wide gap between the potential possessed and requirement of the work and as a result of the correlation the performance of the candidate improves, moral level will be high and he will be satisfied with the work which is beneficial for the organization for accomplishment of its overall objective.

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CONCLUSION AND SUMMARY

Knowing how people perform in their work that is their performance level and identifying those who have for handling the work more effectively are essential for any organization. Without such knowledge, management cannot take the decision regarding the need for training, promotion neither for transfer within the particular branch or across the branches of the organization. In other words, management need to appraise the performance in order to take the decision regarding the rewarding the employee in order to motivate him or taking the corrective actions.

Earlier in the ULTRATECH CEMENTS LTD marking system was used for appraising the performance of the candidates. The system of grading suffers from few of the drawbacks such as the grades were completely unknown to the candidate even result was not reveal to the candidate and promotion was the only reward provided which is also get due after the three year of service. As a result employees were dissatisfied with it. In order to overcome these limitations ULTRATECH CEMENTS LTD took the initiative and call a external consultancy AT KEARNEY to devise a new system for appraising the performance. The consultancy devises the performance management system known as PMS which was bought into practice in 2004. This PMS system overcome the drawback of the previous method of appraising the performance and even has one major advantage that is that it facilitates the two-way communication between the reporting officer and the candidate.

In order to know that whether employees are satisfied with the PMS system or not, I conduct a survey with the help of the questionnaire and after analyzing the response of the employees to the question I find out that mostly all the employees are satisfied with the PMS system.

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BIBLIOGRAPHY BOOKS Personnel Management by C.B Mamoria and S.V. Gannker. Personnel Management by Edwin Flippo. Appraising and Developing Managerial Performance by T.V. Rao. Human Resource Management by L.M Prasad. Management of Performance Appraisal by M.L Monga. Performance Appraisal by Martin Fisher. Human Resource Management by V.S.P. Rao.

JOURNALS AND MAGAZINES

ULTRATECH CEMENTS LTD Weekly News Bulletin

REFERENCES

www.citehr.com www.pmintpc.com http://en.wikipedia.org/wiki/Performance_appraisal www.businessballs.com http://www.performance-appraisal.com/intro.htm http://www.performancemanagementguide.com/ www.openlearningworld.com

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QUESTIONNARIE Questionnaires of Executives

1. Does the competency identify of the candidate in the performance management system correlates with the work requirement?

Absolutely Partially Reasonably well Not realistically

2. Does the key performance area (KPA) setting in the performance management system correlates with your priority for work?

Absolutely Partially Reasonably well Not realistically

3. Does the identification of the potential of the candidate in the performance management system correlates with the work requisite? Absolutely Partially Reasonably well Not realistically

4. The extent of involvement in setting the key performance area (KPA) in the current performance management system for evaluating performance is?

High Satisfactory 97

Average Not satisfactory

5. The marking system adopted in the current performance management system for evaluating performance is? Very effective Effective Fairly effective Ineffective

6. The time gap of 6 months provided in re-evaluating the target is? More than sufficient Sufficient Reasonable Not sufficient

7. The performance management system facilitating the two way communication between the reporting officer and candidate is?

Highly motivating Reasonably well motivating Not very well motivating De-motivating

8. Does the competency identify of the candidate in the performance management system correlates with the work requirement?

Absolutely Partially 98

Reasonably well Not realistically

9. Does the key performance area (KPA) setting in the performance management system correlates with your priority for work?

Absolutely Partially Reasonably well Not realistically

10.Does the identification of the potential of the candidate in the performance management system correlates with the work requisite?

Absolutely Partially Reasonably well Not realistically

Questionnaires of Employees

1. Are you aware with the performance appraisal management system in your organization?

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a).Yes

b). No

2. In your opinion what is the degree of transparency in the appraisal system?

a).Low

b).Moderate

c). High

3. Are you satisfied with the present appraisal system?

a).Yes

b). No

c).No comment

4. Do you get any motivation by the appraisal?

a).Yes

b).No

c).No comment

5. Appraisal should be done:

a). Annually

b). Half-yearly

6. Do you think that different departments should have different appraisal forms?

a).Yes

b). No

c).No comment

7. Do you think there is clarity in the appraisal system? 100

a).Yes

b). No

8. Is direct feedback associated with the appraisal system?

a).Yes

b). No

c). No comment

9. Do you know your job profile very well?

a).Yes

b).No

10. Should counseling method be used after completion of the appraisal cycle/period?

a).Yes

b). No

11. Do you think that there is a need of training to the appraiser? a).Yes b).No

12. Are you satisfied with the monetary linkage of appraising system, as a bonus? a).Yes b).No

13. Is there any scope present in the current performance management system for accomplishing of the group objective? 101

High Reasonably well Partially Not sure

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