A PROJECT REPORT ON PERFORMANCE APPRAISAL PROCEDURE AT NATIONAL ALUMINIUM COMPANY LIMITED (HUMAN RESOURCE MANAGEMENT)

Prepared By:
Surekha Nayak
ROLL NO. 13234V074316 ENROLMENT NO-07/102/316

Under the Guidance Of

MR. S.K JENA

Chief Manager Finance (Nalco)

CERTIFICATE
This is to certify that the dissertation entitled

PERFORMANCE

APPRAISAL PROCEDURE at NALCO, Bhubaneswar

being submitted by Surekha Nayak, a student of MBA, DDCE; Utkal University is a bonafied research work carried out by her under my guidance and supervision. This dissertation has not been submitted or published any where before.

Dr. Sarita Mishra Faculty Management Programmee Utkal University Bhubaneswar, Orissa.

DECLARATION
I Miss Surekha Nayak, do here by declare that dissertation titled

PERFORMANCE

APPRAISAL

PROCEDURE

at

NALCO, Bhubaneswar

submitted by me to the DDCE; Utkal

University as a part fulfillment of the award of the Masters degree of Business Administration is my own Research work. This project embodies the findings and observation of my study and has not been submitted to any other institution/ university or published at anywhere before.

Date

Surekha Nayak

AC K N OWL E D GM E N T
I would like to express my profound sense of gratitude and heartful thanks to my guide Mr. Manoj Kumar Mohanty (Asst. Manager(H.R.D)) for her constant encouragement guidance without which this Dissertation. I am highly thankful to my esteemed faculty Prof. S.K. Tripathy for her constant encouragement, inspiration, valuable advice & most scholar guidance in conducting this study & preparing the project work. Special vote of thanks Mr. Subas Chandra Jena, Asst. General Manager (HRD). Kindly permitted me to carry on this project and for her expert suggestions and support. I further extend my deepest gratitude to other people working in the OHPC. Ltd. For their support in several ways which made possible to complete this study in time. Lastly I would like to thank to my family and friends for their constant support and encouragement to complete my dissertation work.

Surekha Nayak

CONTENT
CHAPTER 1
INTRODUCTION AIMS AND OBJECTIVES SCOPE LIMITATION METHODOLOGY

CHAPTER 2
THEORITICAL ASPECT OF PERFORMANCE APPRAISAL

CHAPTER 3
COMPANY PROFILE

CHAPTER 4
HUMAN RESOURCES AT NALCO

CHAPTER - 5
PERFORMANCE APPRAISAL AT NALCO

CHAPTER 6
DATA ANALYSIS FINDINGS RECOMMENDATIONS CONCLUSION

CHAPTER -7
ANNEXURE BIBILIOGRAPHY

CHAPTER - 1

CHAPTER-1 INTRODUCTION:
Today, business has grown to be very complex and dynamic. In todays world business has to face a number of challenges. The important fields in business like market ,technology, composition of workforce ,attitude and expectation of customers are changing very rapidly. Due to all these factors an organization has to take a fresh look at their different functional areas to modify and improve the kind and style of management so as to reach its goals easily. there has to continuously and effective modification in the management policies due to the market functions. An organization consists of four important resources such as man, money, materials and machinery. The success and failure of an organization depends upon the effective combination and use of these resources. However the principle component of an organization is its people, or manpower, or human resources, which plays a vital role in the success of an organization. So, the management should take the right step at the right time for improving and developing of these pervasive and never ending resources.

PERFORMANCE APPRAISAL:
Performance appraisal is a systematic evaluation of performance and potential of an employee for improvement. For an individual it is the means of telling the employee how is he/she is performing and suggesting the change needed in his behaviour, attitude, skills. Appraisal are objectives judgement of characteristics, traits, and performance of personnel by his immediate superior. Appraisals are also essential for making such administrative decision. performance appraisal provides valuable information for personnel decisions such as pay increases, promotions, demotions, transfers and terminations. It helps to judge the effectiveness of recruitment, selection, placement and orientation systems of the organization. It is useful in analyzing training and development needs. Its main objective is to provide a valid database for personnel decisions concerning placements, pay, promotions, etc. it also helps in developing positive superior-subordinate relations. Performance appraisal promotes a positive work environment which contributes to productivity.

AIMS & OBJECTIVES:

Performance appraisal has been considered as most vital and indispensable system for an organization . In an organization it provides highly useful information in making decision regarding various personal aspects such as promotion and other administrative decision.

It is an aid for creating and maintaining satisfactory level of performance by employee on their present job . The primary objective of the study is to study about the existing performance appraisal system of NALCO. In the light of the above objective the following are the various sub-objectives framed : To find out the impact of performance appraisal on workman and management. To find out whether present appraisal system is favourable and beneficial to the employees. To find out the methods followed by the organization in evaluating the performance of their employees. To find out whether this system brings uniformity in the increasing productivity and welfare of the organization.

SCOPE:
The study focuses on the existing performance appraisal system of NALCO. The study covers the performance appraisal system for execution of part of corporate office NALCO. The views of the executives were taken through primary as well as secondary source.

METHODOLOGY:
NALCO being a industrial establishment , researcher collected the opinions in the random sampling method .NALCO depends upon the conservation , advancement & utilization of its workforce. To conduct any research a scientific method must be followed. Thus the coverage of the performance appraisal center &other activities are natural. It is so vast that to have a detail study of the entire NALCOs population was not possible . Therefore for the purpose of the primary data the researcher has to rely on questionnaires to collect information will be comprehensive for the study. The questionnaires were distributed personally among the respondents and was collected by an informal discussion to get the maximum information about the collected data. In practice it is very difficult to collect information from all the executives .

SAMPLE SIZE:
For the administration of questionnaire in NALCO the management has given the opportunity to collect the information only from 50 employees . so random sampling methob is adopted in order to conduct the study.

SOURCES OF COLLECTION:

There are two sources of data necessary for each study .The two sources are primary source & secondary source .The primary sources includes books ,journals etc & the secondary sources are the companies records, performance appraisal reports, questionnnaires, journals & other company publications.

PRIMARY DATA:
Primary data is collected by discussions with various executives, managers and supervisors. A questionnaire was prepared and a total of 50 employees were approached and the questionnaire was administrated on them and their perception was collected.

SECONDARY DATA:
NALCO records Annual reports Company profile Journals

CHAPTER - 2

CHAPTER 2

THEORITICAL ASPECT OF PERFORMANCE APPRAISAL

Appraisal of performance is widely used in the society. Since then tremendous change have taken place in the concept, techniques and philosophy of the employees appraisal. Performance evaluation or performance appraisal is the process of assessing the performance and progress of an employee or a group of employees on a given job and his potentials for future developments. It consists of all the formal procedures used in the working organizations to evaluate personalities, contributions and potentials of employees. But strictly speaking the aspects of performance appraisal is wider in terms than merit rating. In merit rating the focus is on judging the caliber of an employee so as to decide salary increment. It is designed primarily to cover rank and file personnel. On the other hand performance appraisal focuses on performances and overall development of the employee. Its aim is not simply to decide salary increments but to develop a rational basis for personal decisions. The several decisions of performance appraisal followers the set pattern and it consists of establishing standards, communicating those standards, measuring the performances, comparing the actual performance with the standard performance, discussing the appraisal with the employees , taking corrective action

Performance Appraisal.
Appraisal of perforniance is widely used in society. Parents evaiuate their chiidren, teachers evaiuate their students and employers evaiuate their employees This early appraisal system was called merit rating. In the early fifties, performancc appraisal techniques began to be used for technicai, professional and managerial personnel.Performance appraisal is the process of assessing the peribrmance anj progress of an. employee or of a group of employees on a given job and his potential for future development. It is the systematic, periodic and an impartial reting of an employee's excellence in matters pertaining to his present job and his potential for a betler job.

Objectives
To provide feedback to ernpioyees. To provide a valid database for personnei decissions concerning Placements. Pay, Promotion, Transfer, Punishment etc. To diagrase thc strengths and weaknesses of individuals for further training needs. To provide Coaching, Counselling, Carrier pianning and subordinates. To develop positive superior- subordinate relations. motivation to

Uses
Performance Appraisal provides valuable information for personnel decissions such as pay increases, promotions, demotions, transfers and terminations.

 It helps to judge the effectiveness of recruitment, selection, placement and orientation systems of the organisation.

It is useful in analysing training and development needs.

It promotes a positive work environment which contributes to productivity. Appraisal records protect management from charges of discrimination levelled by trade uniorn leaders. Employee grievances can be reduced.

Process
Establishing performance standards. Communicating the standards. Measuring performance. Comparing the actual with the standards. Discussing the appraisai. Taking corrective actions. Several methods and teachniques re used for evaluating employee performances. Along with the traditional methods, now modern methods also came performances. They are as shown : into use for evaluating the

PERFORMANCE

APPRAISAL

TRADITIONALMETHODS 01 Confidential Report

MODERN METHODS 01. Assessment Centre

1 2 3 4 5 6 7 8 9

Free form or Essay Starigth Ranking Paired Comparisons Foreed Distribution Graphic Rating Scales Check List method Critical Incidents Group Appraisal Field Review 3. BARS 4. M B O 5. 360appraisal 2. HumanResource Accounting

The different traditional methods are as follows: 1. Straight ranking method: It is the oldest and simplest method of performance appraisal. Here the ranking of one employee in a work group is done against that of another. Employees are ranked from the best to the poorest on the basis of overall performance. The relative position of an employee is reflected in his numerical rank. This method is time saving and a comparative evaluation technique of appraisal. 2. Paired comparison method: This is a modified form of man to man ranking. Here each employee is compared with all others in pairs one at a time. The number of times an employee is judged determines his rank. 3. Confidential report: This is a traditional form of appraisal used in most government organizations. It is a report prepared by the employees immediate superior. It covers the strengths and weaknesses, main achievements, failures, personality and behaviour of the employees. It is descriptive appraisal used for promotions and transfers of the employees. 4. Free form or Essay method: Under this method, the evaluator writes a short essay on employees performance on the basis of overall impression. The description is expected to be as factual and concrete as possible. 5. Forced distribution method: In this technique the rater is required to distribute his ratings in the form of normal frequency distribution. The purpose is to eliminate the rater biased of central tendency. Here also ranking technique is used. 6. Graphic rating scales: It is a numerical scale indicating different degrees of a particular trait. The rater is given a printed form for each employee to be rated. The form contains several characteristics relating to the personality and performance of the employees. The rating scale method is widely used as it is easy to understand and use. 7. Check list method: A check list is a list of statements that describe the characteristics and performance of employees on the job. The rater checks to indicate if the behavior of an employee is positive or negative to each statements. The performance of an employee is rated on the basis of number of positive checks. 8. Critical incident method:

In this method the supervisor keeps a written record of critical (either good or bad) events and how different employees behavrd during such events. The ratings of an employee depends on his / her positive / negative behaviors during these events. These critical incidents are identified after thorough study of the job and discussion with the staff. 9. Group appraisal method: Under this method group of evaluators assess employees. This group consists of the immediate supervisor of the employee, other supervisor having close contact with the employees work, head of the department and personnel experts. The group determines the standards of performance of the job., measures the actual performance of an employee, analysis the cause of poor performance and offers suggestions for improvement in future. 10. Field review method: In this method a training officer from the personnel department interviews line supervisors to evaluate their respective subordinates. The interviewer prepares in advance the questions to be asked. By answering these a supervisor gives his opinions about the level of performance of his subordinates, their work progress, his strengths and weaknesses, promotion potentials etc., the evaluator takes detailed notes of the answers which are then approved by the concerned supervisor. These are then placed in the employees personal service files. The modern methods of performance appraisal: The most effective of all the modern methods of performance appraisal is MANAGEMENT BY OBJECTIVES. This concept was developed by Peter Drucker in 1954. since then MBO has become an effective and operational technique of performance appraisal and a powerful philosophy of managing . MBO has been defined as a process whereby the superior and subordinate managers of an organization jointly identify its common goals, define each individuals major areas of responsibility in terms of result expected of him and use these measures as guides for operating the units and assessing the contributions of each of its members. MBO process:The main steps involved in performance appraisal through MBO are as follows: Set organizational goals Defining performance targets Performance reviews Feedback

The advantages of this goal setting approach are: MBO helps to avoid role ambiguity and role conflict MBO provides objective criteria for evaluating performances.

MBO provides active participation of subordinates in goal setting and performance reviews helps to satisfy ego and self actualization needs. MBO helps in developing management. It is a problem solving tool. MBO leads to coordination, harmony between objectives at different levels.

Thus the theoretical aspects of performance appraisal are noteworthy in determining the potentials, personality, confidence of an employee overa

CHAPTER-3

CHAPTER - 3

Company profile HISTORY OF NALCO:

The story of NALCO is deep routed in the bound and benevolence of benign mother earth and in the indomitable spirit of man. The years of unseen and unsung quest of prospectus in the hostile wilder leads to a momentous discovery of over one thousand million ton bauxite reserve in 1975. the country is pushed up to the 5th rank in the world resources graph, with a total estimated reserve of 2900 million ton. The government of India on 28th march, 1978 authorizes aluminium pechinery of France to prepare a feasibility report on industrial exploitation of bauxite for establishment of an integrated aluminium complex. Feasibility study focus on panchpatmali, 30km east of koraput in orrisa and 130km north of vizag port, containing the single largest deposit of 310 million ton of bauxite of unquestionable potential. In may 1980, Bharat Aluminium Company limited the forerunner in public sector aluminium industry, puts forth the orissa aluminium complex proposal to the government of India. The govt takes the investment decision on 1st November 1980. Thus, NALCO, truly and national venture to take the country forwarding the world aluminium market, a unique product of judicious deliberations and prudent planning gets incorporated on 7th Jan 1981. yet another saga of human enterprise begins as time moves on to create new patterns of sweat and success. On 9 January the newly founded NALCO signs an agreement of collaboration for latest technology know-how and basic engineering with aluminium pechinery the world leader to set up Asias largest integrated aluminium complex.

Flurry of project activities follow in the months to come, NALCO establishes unique landmarks in the history of project management in Indian industry despite difficult project logistics and multiplication sites. NALCO goes into production in a phased manner, starting from 1985. The complete and firm reliability of project of financing was another hallmark. The total capital cost of rs2408 was partly financed by a rs1119 crore equivalent Eurodollar loan raised through a consortium of international banks and the balance rs1289 crore coming in from the government of India plan funds. Thus, NALCO heralded a new era of aluminium making of world standard aluminium products. Time moves on. NALCO takes bold initiatives to enter the export market, gets LME registration for its products acquires ISO certification units pre-pays overseas debts, receives awards, recognitions, and accolades for continuously improved performance on all fronts.

As NALCO enters the 25th year of its existence in 2005, a national asset worth above rs10000 crore gets created out of an initial investment of rs2408 crore while yielding rich dividends for the country, for the state and for people at large. Thus, NALCO s success story continuous

Nalco Overview
Incorporated in 1981, as a Public Sector enterprise of the Government of National Aluminium Company Limited (Nalco) is Asia's largest integrated complex, encompassing bauxite rnining, alumina refining, aluminium power generation, rail and port operations. Commissioned during 1985-87, under extremeSy difficult logisties of project star India

aluminium

smelting and casting,

management, that too without time or cost over-runs. Nalco has emerged to be a

performer in production and export of alumina and aluminium and more signitlcantly, in propelling self-sustained growth. Leveraging the technical collaboration with Aluminium Pechiney of France. ISO 9000: 2001 certification of quality management, LME registration of products, environment care conforming to ISO 14001, iow cost operations. international customer base, Nalco has

continued to add value and is posed to grow further. Transparent and successfijl operations of Nalco, as well as its contributions. have about remarkable socio-economic progress in brought

the two underdeveloped districts of

Orissa, where the company's plant and facilities are located.

01.

Technical Features
Bauxite Mine, Panchpatmali, Orissa, 48,00,000 tpa

Fully mechanised open cast mines with computerised mine planning. 370 million tonnes deposit estimated 14.6 kms - long single - flight multi corve 1 800 tph capacity computerised conveyor system for transportation of Ore.

02.

Alumina Plant Damanjodi, Orissa, 15, 75, 000 tpa

steam.

Atmospheric pressure digestion process Energy efficient fludised bed calciners Co-generation of 3 X 18.5 MW power by back pressure turbines from process

Integrated facilities for manufacture speciality aluminas,

Hydrates and Zeolite.

03.

Aluminium Plant, Angul, Orissa, 3, 45, 000 tpa

Advanced 1 80 KA Cell Technology Micro - Processor based Pot-Regulation System Fume ireaimeni wiih dry-scrubbing system Integrated annode making , aluminium casting and rolling facilities.

04.

Power Plant, Angul, Orissa, 960 MW

Micro-processor based burner management. Automatic turbine run up system Specially designed high pressure boilers Advanced electrostatic precipitators.

05. Port Farilities, Vizag, Andhra Pradesh. For export of Alumina and Import of Caustic Soda Lye Mechanised storage facility of 3 x 25, 000 T capacity Mechanised Mobile Ship loader of 2200 tph capacity. Capacity to handle ships up to 35000 DWT.

Nalco Products
CALCINED ALUMINA Product Code : C A 10 Chemical Formula: AL2O2 Type ; Sandy - coarse Physical Properties LOI (300-1000 C) % BET Surface Area (m2/gm) Alpha Alumina Content % Granulometry : + 125 Micron (%) Bulk Density (T/M3) 10 15 Max 12 max 0.95-1.05 Typical Range 0.5-1.0 60-80 10 Max

ALUMINA HYDRATE Product Code : AH 10 Chemical Formula: Appearance: While

Physieal Properties LOI (110- 1000 C) % Moisture (%) Granulometry - 45 Micron (%)

Typical 34 -36 3 -6

Range 36 max 8 max

-6

7 max

ALUMINIUM INGOTS/SOWS General Composition High Purity -99-8% (min.) LME Grade-99.7% (min) General conforming to IS- 19800AA 1080 Pamary aluminium with min. purity of 99.7%Fe = 0.20% max. SL= 0.10% Max. or conforming to P1020A specifications For fabrication of electric conductors and other EC Grade- 99.5% (min.) electrical purposes generally containing to IS4026
ots with Fe/Sl ratio adjustmentfar electrical conductors can be pmduced an specific requirement.

WIRE RODS Wireproduct from Properzi Continuous Casting and Rolling process are available in nominal dia size of 0.5 11.95 mm in coil forms. Coil Dimension & Weight Specifkations

ID mmD

: :

760 mm 1520 850 mm 2000 Kgs (approx.)

Product (Code) EC Wire Rod (WE 10/12) WC Wire Rod (WE20/22)

Electrical Conductivity % IAC S 61.500 61.00 to 61.499 <61.000

Height : Weight :

ALLOY INGOTS Product Code IA 10 IA 20 IA 30 IA 40 IA 50 SI % 9-11.5 1-6 10-13 8-9.5 11-12.5 Fe % 1 max 0.8 max 0.6 max 1 max 0.5-0.7 Mg % 0.3 mac 0.15 0.1 max 0.3 max 0.05 max Cu % 0.7-2.5 2-4 0.1 max 3-4 1.5 -3.5 Alloy Equivalent LM 2 LM 4 LM 6 LM 24 ADC 12

ALUMINIMUM BILLETS Nalco has 30,000 tpy Hot Top Maxi Cast Billet Casting world-class billet casting technology provides distinct advantages in p rock; superior quality DC Cast Aluminium Billets in solt and hard a!!o input for manufacture of high quality extrusions.

Diameter Length Squareiiess Bow

: : : :

127 mm + 1.5 mm 178 mm+1,5 mm 52 mm 1.5 mm 203 mm + l .5 mm 400 mm to 5800 mm wiih a tolerance of 5 mrn for for every 1000 mm lengthor part there of l mm max. per 100 mm diameter. 2 mm per meter with 10 mm max. Per log.

ALUMINIUM CAST STRIPS DIMENSIONS : 1. Strip Width (Trimmed) (i) 950 to 1600 mm for Alloy i000 series (ii) 1270 to 1480 mm for Alioy AA8011 series (iii)1220 mm (max.) for |Alloy 3004 and 5000 2. Strip Gaugge 3. Coil Outer Dia (max) 4. Coil Inner Dia (max.) 5. Crown (max.) (EDGE-CE NTRE-EDGE) TOLERANCES : 1. Strip Thickness : 2. Strip Width : +4mm 3. Teiescopicity of the coil 0.2 series (i) 6 to 8 mm for 3000,5000 7 8000 series (ii) 6 to 10 mm for 1000 series 1900 mm 610 mm O to 2.00% (Positive crown only)

GLOBAL PRESENCE:

MARKETING

Alumina andl Chemicals A quantity of 9,09,081 MT of Alumina and 424 MT of spe-exported to various overseas buyers and 26,220 MT of alumina/hydrate v\ in the demistic market.

Aluminium The eompar.y achieved the highcst ever total metal sale highest ever domestic sale and the highest ever export metal sale. Faridabad Stock Yards was re-opened and Silvassa Stock Yards w: during the year besides having regular sales activity from other Bhiwandi, Jaipur, Kolkata, Vizag and Bangalore,

Alumina During the year 2004-2005 the World consumption of Alumina million MT ?g?.inst World productior. of 57.905 million MT showing a d( 0.0251 million MT.

Aluminum During the year 2004-2005 the World consumption of1 primary al was 30.320 million MT against World suppiy of 29.844 million MT. shov deficit of 0.477 million MT. The world supply and consumption grew by 6.6% and 9.3% consumption is estimated to have risen by 17% and production demand from USA, Europe, Brazil, China and South Korea helped streng! international nrices durine the vear.

PROFIT DURING LAST FIVE YEARS

1600 1400 1200 1000 800 600 400 200 0

PROFIT

2001- 2002- 2003- 2004- 200502 03 04 05 06

PRODUCTION OF ALUMINIUM DURING LAST FIVE YEARS:

400 350 300 250 200 150 100 50 0 2001-02 2002-03 2003-04 2004-05 2005-06

PRODUCTION 3-D Column 2 3-D Column 3

EXPORT OF ALUMINIUM DURING LAST YEARS:

200 150 100 50 0 EXPORT DOMESTIC SALE 3-D Column 3

2001-02

2002-03

2003-04

2004-05

MAJOR ACHIEVEMENTS:

 First mines safety award: CAPEXIL export award: LME registration: STAR TRADING HOUSE status: ISO 9002 certification: Alumina refinery: Smelter plant: Captive power plant: Bauxite mines: CITD special gold award: Best exporters award: Safety award for eco-friendly factory: Rajiv Gandhi memorial national award: Indira priyadarshini vrikshamitra award: Environment management certification to ISO: Engineering export promotion council(EEPC)award: Environment management certification to ISO:

March 1998 1988 to 1999 (12 times ) May 1989 January 1992

November 1994 February 1995 December 1995 January 1996 September 1994 November 1994 march 1995 july 1996 September 1996 September 1996 December 1996 February 1997 august 1999 december 1999

Best annual report prize by public sector public relation forum: Prestigious IIC India limited award:

Shram vir award received by sri dolu patra senior technician of NALCO from former prime minister sri atal bihari vajpayee: February 2000

 five technologists of NALCO received united nations intellectual property organization (WIPO) gold medal for development of process technology for manufacturing detergent grade zeolite: may 2000 special safety award by directorate of factories and boilers: Fuel conservation award for M&R complex by CII eastern region: first dispatch of special grade alumina from SGA pilot plant: march 1997 june 1997 july 1997

Independence day award 97 to NALCO scientists for the process invention by national research development corporation(NRDC): august 1997 FICCI award on environment conservation and pollution control for the year 199697: nov 1997 Indian institution of industrial engineering award for performance excellence 199697: Nov 1997 Environment protection award by institute of ecology & environment, New Delhi: dec 1997 Environment management certification to ISO-14001: Best occupational service award to damanjodi unit: dec 1997 march 1998

All India industrial promotion INDEPENDENCE GAURAV AWARD: may 1998 Selected for GEM granite environment award for the year 1997-98 by the federation of Indian mineral industries(FIMI): july 1998 Selected for rungta social service award for the year 1997-98: Honoured with united nations world intellectual property organization: july 1998

THE NON-EXECUTIVES PAYSCALES:

PRE-REVISED Scale code

U1 U2 U3 / T0 / P0 / M0 U4 / T! / P1 / M1 U5 / T2 / P2 / M2 S0 / T3 / P3 / M3 S1 / T4 / P4 / M4 S2 / T5 / P5 / M5 S3 / T6 / P6 / M6 S4 / T7 / P7 / M7

Pay scale
2100-40-2660/2140-45-2455-50-2805/2190-50-2540-55-2925/2250-60-2670-65-3125/2320-70-2810-75-3335/2400-80-2960-90-3590/2500-95-3165-105-3900/2620-105-3355-1154160/2800-120-3640-1304550/3050-130-4090-1405070/-

REVISED Scale code

W1 W2 W3 / T0 / P0 / M0 W4 / T1 / P1 / M1 W5 / T2 / P2 / M2 S0 / T3 / P3 / M3 S1 / T4 / P4 / M4 S2 / T5 / P5 / M5 S3 / T6 / P6 / M6 S4 / T7 / P7 / M7

Pay scale
4400-3%-7950/4650-3%-8400/4925-3.5%-9150/5325-3.5%-9890/5725-3.5%-10635/6125-3.5%-11490/6625-3.5%-11490/7225-3.5%-12530/8000-3.5%-13400/8550-3.5%-14325/-

THE EXECUTIVE PAYSCALE IN VOGUE:

DESIGNATIONS ASST. ENG/ASST OFFICER Jr. mgr / medical officer Asst mgr / sr. medical supdt Dy. mgr / asst medical supdt. Mgr. / dy. Medical suptd. Sr. mgr. / medical supdt Chief mgr / chief medical sup. Dy. general manager (DGM) General manager (GM) Executive director (ED)

CODES E0 E1 E2 E3 E4 E5 E6 E7 E8 E9

REVISED W.E.F 01/01/97 8600-4%-14600 11225-4%-17525 13750-4%-18300 16000-4%-20800 17500-4%-22300 18500-4%-23900 19000-4%-24750 19500-4%-25600 20500-4%-26500 23750-4%-28550

ORGANISATION CHART
BOARD OF DIRECTORS BOARD OF DIRECTORS

MANAGING DIRECTOR

DIRECTOR FINANCE

DIRECTOR PRODN

DIRECTOR (P&T)

DIRECTOR (P&A)

CVO

DIRECTOR COMPUTER

GM(FIN )

ED(S&P)

GM(P& T) GM (CPP) GM (H&A) GM (FIN) GM (MAT) GM (PROJ)

GM(HR D)

GM(A &CC)

ED (COM P)

(GM MKTG)

CHAPTER-4

CHAPTER-4
HUMAN RESOURCES AT NALCO

HUMAN RESOURCES:

About 7426 persons possessing a variety of skills, qualifications and competence are at the services of NALCO. NALCO is truly youthful with the average age of the employees being below 40yrs.Starting with a core group of 262 employees in 1982, the progressive growth in manpower has taken place in a planned manner matching the needs of the different stages of the project. The categories of manpower in NALCO are executives and non-executives. NON-EXECUTIVES: HIGHLY SKILLED: The employees who are technically / professionally educated and trained generally hold supervisory positions. Diploma engineers get direct entry in to supervisory positions .other employees enter supervisory positions through the departmental promotion groups. SKILLED: These are mostly the employees with graduation/ITI/paramedical qualifications. T0,T1,T2,M0,M1,M2 group of workers are coming under this category. SEMI-SKILLED AND UNSKILLED: These are the employees normally having below matriculation level or non ITI qualifications or even illiterates. The grade codes of W1,W2,W3,W4,W5,W6 come under this category. EXECUTIVES: This category of employees are usually qualified with degree in engineering/medical or with professional qualification like MBA, CA ,AICWA or other management degrees. diploma engineers ,post graduate degree ,general degree holders also occupy lower management positions by way of departmental promotions. Employees with grade codes E0 to E9 come under this category. channels. Employee groups in grade codes such as S0,S1,S2,S3,S4,T3,T4,T5,T6,T7,P4,P5,P6,P7,M3,M4,M5,M6,M7 are highly skilled

MANPOWER POSITION OF NALCO AS ON 31 MARCH 2007.

SL N O 1 2 3 4 5

CATEGORY EXECUTIVES SUPERVISORS SKILLED/HIGHLY SKILLED WORKMEN UNSKILLED/SEMISKILLED WORKMEN TOTAL 1745 892 2405 1145 7426

NO IN POSITION

2500 2000 1500 1000 500 0 EXECUTIVES SUPERVISORS SKILLED/HIGHLYSKILLED UNSKILLED/SEMISKILLED

THE STRUCTURE OF HRD& ADMN DEPARTMENT OF NALCO:

DIRECTOR (P&A)

GM( HRD )

GM (A&C C)

GM (L& C)

GM H&A-S&P

GM H&A-M&R

DGM H&A CPP SR MGR HRD CM (HRD) CPP SR MGR HRD-TRG S&P

DGM HRD CS CM (H&A) SMLT

DGM MS S&P CM HRD SMLT

DGM H&AM&R CM ADMN S&P

DGM IECO

DGM MSCO

MGR HRD CL

MGR HRD IR&WE LFARE

DM HRD ESTT

DM HRDTRG

MGR HRD TRG

JM HRD

AM(HRD) JM(HRD) AO(HRD)

AM HRD TRG JM HRD

Human Resources importance:

To attrAet competent personnel with growth potential and develop their skilis and capabilities in a congenial work and social environment opportunities for training, recognition, career advancement and through other

incentives. To develop and nurture favourable attitudes among the employees and to obtain their best contributions to the organization by providing stable employment, safe working conditions, job satisfaction, quick redressal of grievances and through good pay and welfare amenities commensurate with the Company's capacity to spend and the Government's guidelines. To foster fellowship and sense of belongingness among all and by encouraging healthy trde union practices. sections of

employees through closer association of employees with the management

PERSONNEL POLICY OF NALCO:

Policy means plan of action. A policy is manmade rule of predetermined course of action that is established to guide the performance of work towards org objectives. HR SUBSYSTEMS: TRAINING/DEVELOPMENT: NALCO believes that it is a contonious process throughout the career of every employee with a view to develop his technical, human, conceptual skills as required for his future career growth. WAGE/SALARY ADMINISTRATION: The (HRD&A) department carries out it as negotiated by the recognized trade union and manafement. In case of executives the government guidelines and corporate office are the authorities for salary fixation. But in case of non-executives, the wage is fixed by corporate office after negotiation with trade unions. NALCO has adopted the IDA pattern pay scales both for executives and nonexecutives.

HR Policies
Human Resource Policy provides a frame work within which decisions can be taken without further reference to higher authorities. Policies are broad guidelines as to how the objectives of a business are to be achieved. While objective provide the vends which a manager should try to achieve, policies provide the guidelines which he should keep in view while achieving the ends. A policy is designed to guide the organisational members to deal with a particular situation in a particular manner. A policy is a predetermined and accepted course of thought and action to serve as a guide towards certain accepted objectives, Policies lay

down the decision making criteria in line with the overall purpose of the organisation in the area of Human Resources Management. These policies are developed by Top management to assist the managers at various levels to deal with the people at work. Thus, policies can be interpreted as the recognised intentions of top management with respect to efficient management of work force. A pclicy is a guide fer repetitive action in major areas of business. It is a statement of commonly accepted understanding of decision-making criteria.

Benefits of Policies.
By making policy decisions on frequently recurring problems, the top management provides guidelines to the lower level managers. Policies help managers at various levels to act with confidence without the need for consulting the superiors every time. Policies facilitate better administrative control as they provide the rational basis for evaluating the results. By setting up policies, the management ensures that decisions made will be consistent and in tune with the objectives and interests of the enterprise. Policies secure coordination and integration of efforts in accomplishing the organisational objectives.

H.R.Policies in brief
Environmemai Policy TQM Occupational, Health & Safety Policy TPM Quality Policy New Projects Technology

Quality Policy

Quality forms the core of Nalco's business philosophy. Meeting the needs and expectations of the customer and consistently improving systems and work ethos is the chosen path in achieving excellence in business and in fulfilling social obligations To ensure a healthy return on investment by maximizing operational effiency, capacity utilization and productivity.

To continually improve and redesign systems, processes and practices in order to ensure error prevention and improve response time.

To

adopt

internal

customer focus

as

a means

to

external

customer

satistaction.

To treat human resource as the key to Quality Excellence and ensure development, involvement and satisfaction of employees.

To ensure high quality of inputs through proactive interaction with suppliers.

To meet obligations towards the society as a responsible corporate citizen.

To provide value for money to all stake holders

To follow ethical business philosophy at all times.

Environment Policy

In recognition of the interest of the society in securing sustainable industrial growth compatible with a wholesome environment, Nalco assigns high importance to promotion and maintenance of a pollution free environment in all its activities. Keeping the above in view, Nalco has set the following objectives. To use non-polluting and environment-friently technology in all industrial activities. To monitor regularly air, water, land, noise and other environment

conditions and pollutant follouts. To constantly improve upon the standards of pollution control and provide a leadership in environment management. To develop among the employees an awareness of environmental

responsibilities and their adherence to sound environmental practices.

To work closely with Govt. and local authorities to help prevent and minimize environment. To comply with all applicable laws governing environmental protection theough appropriate mechanisms adverse consequences of the industrial activities on the

EMERGENCE OF A NEW ERA:

Towards the end of 1994, the HRD strategy of NALCO underwent a sea change. The revolutionizing concepts of open forum, SAHITYA, data based appraisal methods , reward schemes for house keeping , SARJANA for creativity, best attendence, safety awards etc.brought in a new cleansing wave, which changed the perception of the employees about the functioning of the HRD group. The name of the personnel department was changed to human resource development department.

The new HRD STRATEGIES were:

New data based performance appraisal system. Career planning and succession planning through

Training Job rotations Man power evaluation &re-allocations Decentralization of skill development trining and monitoring for the newcomers. Multi-skilling of the employees. Emphasis on communication. Structured departmental & inter-departmental meetings. Informal grievance handling Improved production incentive scheme. Group & individual reward schemes.

TRAINING AND DEVELOPMENT:

The training & development functions in NALCO are carried out in a structured manner. The various components of the function are: Training need identification Preparation of annual training plan Training execution Training evaluation

The training programs are categorized as: Pre-employment training: Graduate engineer trainees Management trainees Senior operative trainees Junior operative trainees Trainee assistants Trainee workers Both academic as well as on-the-job training is imparted Selection through formal recruitment procedure as per the recruitment policy of the company.

Post-employment training: Induction training Executive/supervisory development training Refresher courses Specific technical skill training Statutory training Quality training Safety training Behavioural training Computer training Shop floor training Apprenticeship programmes conducted under statutory obligations of apprenticeship act Vacation training programme for students

JOB ROTATION & MULTI-SKILLING:

Multi-skilling of the employees has been emphasized in NALCO since the beginning as an important HR STRATEGY. In the panchpatmali bauxite mines at Damanjodi , the ITI trained personnel have been recruited as junior maintenance-cumoperative trainees, trained and employed on both maintenance and operation of mining machinery. inter- disciplinary transfers have been practiced from time to time among middle/senior level executives in order to prepare them for taking up higher managerial responsibilities.

HR OBJECTIVES:
1. To capabilities in a congenial work and social environment through opportunities for training, recognition and career advancement. 2. To develop and nurture favourable attitudes among employees to obtain their best contributions to the org by providing stable employement, safe working conditions, job satisfaction, quick redressal of grievances and through good pay.

3. to foster fellowship and sense of belongingness among all sections of employees through closer association of employees with the management and by encouraging healthy trade union practices.

WELFARE- INTRAMURAL,EXTRAMURAL FACILITIES:

INTRAMURAL FACILITIES: Drinking water Washing facilities Latrine and urinal Rest shelter Safety and occupational hazards Uniform and protective clothing Shift allowances Canteen Occupational health center Sanitation and cleanliness Better condition of employment

EXTRAMURAL FACILITIES: Maternity benefit Medical facilities Educational facilities Housing facilities Recreation facilities Holidays and leave travel facilities Workers co-operatives including consumers co-operative stores, fair price shop, and co-operative credits. Vocational training for department of workers Other programme for the welfare of women and children growth Transport to and from the place of work.

EDUCATIONAL / PERIPHERAL DEVELOPMENT:

NALCO is committed to community development activities . 1. Education: A great deal of work is done to renivate local schools and colleges. Extensive support are been provided for adult education programmes. The company schools are providing quality education to hundreds of local students over the year.

2. Drinking water: It is priorty area of Nalcos periphery development plans. More than 12.80 crores provided for digging of tubewells and piped water supply schemes in rural areas of Angul , Dhenkanal and koraput districts.

3. Agriculture & social forestry: Apart from demonstration farming with use of fly ash. Community participation in plantation, distribution of seeds, sapling & agriculture implements are done.

4. Income and employment generation: Companys manpower is mostly sourced from local areas. The construction activities have created millions of mandays of work. Quantum leaps in trade and commerce have created gainful employement for many. About 14000 truck loads of finished goods moved out of Nalco plant every year have caused a boom to transport business in angul sector. 5. Infrastructure development: Apart from funding many rural roads projects(rs 3.36 crore so far) major expansion of roads, rails, telecom networks in angul and koraput sectors have been made possible on account of Nalcos operations.

CHAPTER-5

CHAPTER-5
PERFORMANCE APPRAISAL AT NALCO:
There are two different types of appraisal system existing in NALCO for the executives and non-executives. The OBJECTIVES of the target based performance appraisal system for executives are: To evaluate the extent of achievement vs target by the individual executive during the year. To plan for better performance. To understand the gaps in knowledge and skill with a view to providing guidance and training. To identify the potential of the individual so that a dependable management succession plan can be built up.

MAIN FEATURES:
Joint identification of key performance areas and key tasks by the appraiser and the appraisee. Joint setting of annual targets / dates in the key tasks. Specification of job requirements / helps needed. Quarterly joint review of targets / performance Joint annual review of performance / scoring. Indexed method of attributes/skills/abilities testing Joint training need assessment Moderation of extra ordinary scores by high level moderation committee. Training /workshops on the system.

The scheme of appraisal for non-executives consists of a five point scale with reference to factors such as job knowledge, dependability, amenability to discipline, initiative, safety consciousness, attendence, and punctuality, quality of work, concern for companies property etc. in addition the supervisory personnel are assessed with respect to their knowledge of rules, regulations, ability to communicate, record management, and quality of supervision. Comments on intregity, suitability for promotion and recommendations for training and development are also integral part of the system. The main drawback of the system is its implementation. The appraisers mainly production/maintainence engineers normally do not give enough time to the process of the appraisal. The forms are generally filled in lots at the end of the year. The psychology of gaining popularity with the sub-ordinates, the fear of being brushed up in the case of poor ratings, intrdpartmental examples etc., are important factors for an unrepresentative rating system inspite of very scientific and error proof provisions. whatever may be the system it is always dependent upon the wisdom and sincerity of the individuals who are behind it. GROWTH OF PERFORMANCE APPRAISAL AT NALCO: Performance Appraisai. is improving performance planning by setting mutually agreed specific targets by the appraiser ( superior officer ) the appraise ( concerned executives ). To provide ojbective assessment of executive through an evaluation against target objectives. The policj- emu pnjt-cumca wli.li icfticiice to various forms area performance target setting exercise. The reporting officer informs to the appraise about the department the section objective target with reference to internal action plan of the office. The appraised will identify the Key Persormance Area (K.P.A). Key Task and additional task if any resume the appraise may reter to respective job profile that have been details for each position or senior to his/her level to concern HOD. The annual Performance Appraisai of the non-executives of NALCO is based on following criteria : It has been decided by the firm that to reconsider the annual assessment report of r.on executives employees with a view to obtain an actual faet on assessment of the competence and ability of an employee from his superior officers who have an opportunity to supervise and observe his subordinate's work closely. This

will enable to built up a stock of human assets and to know weak and strong links in deciding whether further training and career developments re necessary. The annual appraisal of the non executives under the new system will relate to one financial year. However, the first appraisal period will relate to 15 months from 01.01.2006 - 31.03.2007, in order to maintain continuity. The employees evaluated on the basis of services of 3 months or more in an assessment year. The front page of the annual appraisal form will be filled up by the concerned HRD Department. Thereafter the blank appraisal forms will be sent to the respected Departmental Heads for appraisal of employees by the Reporting Officer. Great care is taken in writing the Appraisal Reports as it is linked up with the Career growth of the employees. The Reporting Officer should avoid hopinions a nd conclusions based on insufficient data or hearsay. Appraisal against any item of the report should be made very clear and utmost care should be taken to avoid all the vague and incomplete remarks. While recording the adverse remarks in the annual appraisal report, it should be ensured that the individual has already been warned / punishment is imposed / reprimanded and that the appraise has not shovvn any improvement. The assessment made by the reporting officer is again reviewed by his superior officer. This review is necessary to minimize operation of subjective human elements and conscious or unconscious bias on the part of the Reporting Officer. To achieve this, the Reviewing Officer should have ample or sufficient knowledge of the particular work and qualities of the per rfpnrtfH nnon judge whether Reporting Officer's report is correct and fair. The report where an employee has been rated as outstanding or poor will invariably be submitted to the concerned unit Head/GM for per usual. The intention is that extreme rating re carefully viewed. It will be the duty of the Departmental heads to decide whether any remarks made by the Reporting officer or Reviewing Officer re to be communicated to the employee concerned. In such cases, he should record his opinion is definite terms stating the reasons therefore. All representations against adverse remarks should be examined
QO

a; to enable him to

by the respective Head of the Department in consultation with the Reporting and Reviewing Officer, i F found necessary. The appraisal dossier of the employees will be maintained by the concerned HRD department. The HRD department should take timely action so as to ensure that blank appraisal form shall reach the HODs by Ist of April e very year. The HODs will then pass on the form to the Reporting officer for appraisal of the non-executives employees working under them latest 3rd April.The Reporting Officer will appraise the performance of the employee at the earliest convenience but before 13th April. The Reporting Officer's immediate superior will compolete the review exercise by 23rd April and submit the report to the HOD for countersign where Reviewing Officer is other than HOD. The HOD will countersign the report and record his observations if any, and pass on the same toa the HRD department by 30th April. All concerned re requested to strictly abide and adhere to the schedule for proper and timely appraisal of the employees.

GUIDE

LINES

FOR

PERFQRMANCE

APPRAISAL

QF NON-

EXECUTIVES IN NALCO : 1. Assesment should be based on the entire period covered and not on isolated incidents. 2. Assesment of employee is to be done in relation to his/her presnent position only. 3. 4. Tendency to over-rate should be avoided. While assessing the performance of employees at the end of the appraisal period, it is excpected that shortfalls, if any in the persorance of an employee shoudl be bought to the notice of the appraise from time to time during the period. This gives an opportunity to employee to overcome their deficiencies. If in spite of the efforts of the superiors, adverse entries re warranted, then it will be proper and helpful for such entries to be supported by some documents / records, since such entries re generally questiond. 5. As employees in grades of S l to S 4 constitute the top rank in the

non-executive category, it would be worthwhile to have a descussion on their performance in the middle as well as at the end of the appraisal period. i.e. from October and April. These discussion between the appraiser and appraise would create a sense of involvement in the job. Besides, these descussions, preferably recorded would immensely help in a more objective performance appraisal. 6. The appraisal must review the past performance as well but it is important to concentrate on the forthcoming, agreeing and challenging objectives on developing our appraise. 7. The time tabie indicating dates on which various appraisal activities re to be initiated and completed should be strictly adhered to.

ANNUAL PERFORMANCE APPRAISAL OF EXECUTIVES IN NALCO : It has been decided to modify the system of Annual Appraisals in respect of Executives Employees w.e.f. Ist April' 1995 in order to achieve the following objectives :1. To integrated individual and organizational goals through a system o f performance assessment which is linked to the achievements of organization. 2. To ensure on objective assessment of executive mutually agreed targets will in advance. 3. To provide individual executives with continuous and periodic feedback on their performance and identify their development needs. 4. To identify and develop the potential of executive for enhanced performance against

performance. 5. To build a data base and to enable quick and effective administrative decision in respect of carrer planning, promotion, job rotation and job enrichment. Appraisal is not a fault finding process. It is developmental in essence. NALCO practiced the following performance appraisal for executives :-

01.

Pre-Appraisal target setting : The reporting officer is required to set targets and tasks against a time Schedule and as far as possible in quantitative terms in consultation with the executives whose performance he is required to evaluate. This exercise is undertaken at the beginning of the year.

02.

Self-Appraisal : Where you re to furnish data on your achievement of targets / objectives, percived shortfalls with reasons and your own training and development needs.

03.

Review Discussion : Renortina Officer holds a session of discussion every quarter with.the appraise to discuss the performance against targets, shortfalls, shortcomings.

04.

Weightage Factors :

In evaluating technical, conceptual and human relation skiils of an executive, different weight age factors re assigned depending on the level of the executive.

05.

Time-Bound :

The period of appraisal or the appraisal year coincides with the financial year. The Reporting Officer must complete appraisal writing by 20th April every year then through time bound stages the completed report must reach corporate HRD Department on or before 15th May.

06.

Wider Participation in Appraisal Exercise :

Apart from Report and Reviewing Officer each executive appraisal report is seen, commented upon and countersigned by principle HOD and Heads of the units.

07.

Training / Development:

The last page of the report containing recommendations on functional and developmental training is detached from the report and sent to HRD Department for suitable action. The Executive Performance Appraisal System under the revised system will relate to a financial year.

THE APPRAISAL FORM CONSISTS OF FOLLOWING PARTS : Form A B C

DI

Descriptian tf Anpraisal Pracess Performance Target Setting Exercise Task and Target Assigned for the Year Quartcrly Performance Review Annual Target Achievement Appraisal Managerial Skiils Appriasal (Performance Factor)

D2

D3 (Potential Factor) E F DETAILS OF THE PROCESS : 1. FORM "A" :-

Managerial Skiils Appraisal

Training needs indentification Final Assessments.

(Performance Target Setting Exercise ) :- The Reporting

Officerf will inform the appraise about the Department / Section's objective and targets with references to the internal MOU of the unit and hnds over Form A. The appraise will identify a set of key task for the year and key performance areas and fills up Form A which is only exercise sheet, to furnish a set of key task with frame and relative weight age. 2. FORM "B" :- The Reporting Officer and Appraise will mutually agree to a

set of key task for the year, linik each key task with suitable timeframe and assign relative weight ages and finally filling up Form B and sign it. This form is also countersigned by the Reviewing Officer for his acceptance. 3. level FORM wherein of "C" :- The new EPA's envisages Officer for and reason variation and four quarterly details of performance record task of

reviews assigned.

Reporting

Appraise review

performance, special

achievement,

04.

FORM "Di":-

Annual

Target Achievement Appraisal

DI

is

done

by

Reporting Officer and Reviewing Officer in Form

at the end of the year (

during April) after four quarterly reviews ( done in Form-C). Here the Annual Target is compared against achievements ( in terms of quality, quantity and timeframe / date as the case may be ) and percentage achievement is recorded independently by Reporting Officer and Reviewing Officer. Wieghted score of particular key task / special task is calculated by Appraisal cell, giving 70% weight age to Reporting Officer, 30% weight age to Reviewing Officer. The Reporting Officer. The Reporting Officer also gives his observation about the Appraise which is shown to the appraise and his signature is taken. Subsequently the Reviewing Officer makes his observation at the space provided for in Form Di. 05. FORM D2 & FORM D3 :Potential Factor] factors at :[Managerial Skill Appraisal, Performance and Managerial

Each Appraise will be appraised on

Characteristicsw (traits) i.e. six performance factors and nine potential the end of the year. It is suggested that a record of specific incident be kept separately by the Reporting Officer ( both positive and negative incidents) to the extent possible for removing subjectivity. Performance Factors (Skills required for performance) will be rated in Form D2 and potential Factors (Skill required for growth will be rated in Form D3 by Reporting Officer, Reporting Officer (Functional), Reviewing Officer, each of them will have 50%, 25%, 25% weight age respectively ; In absence of Reporting Officer (Functional) the weight age will be assigned at 50% each. 06. FORM "E" :- In this form, the appraisal identifies his training needs and records the details of programme with justification. The Reporting Officer holds descussion with appraise and records his recommendation on training needs giving the respective code available from the training hnd book circulated by HRD Department. Finally the Reviewing Officer gives his final observation in Form "E" regarding training needs of the appraise which is taken into consideration by the HRD department for implementation subsequentlyl.

6.

FORM "F" :- The appraisal cell at the corporate office is to calculate the rating

given by the Reporting Officer. Reporting Officer (Functional) and Reviewing Officer and fills up final score and final overall grade of the appraise in Form "F". LEVEL OF REPORTING OFFICER. REVIEWING OFFICER. HIGHER

AUTHORITY 1. Reporting Officer : The executive next higher in rank and grade not below

the level of E4 officer to whom the appraise reports. In case the executive at E3 level is the sectional head the concerned executive will be the Reporting Officer of EO, E i and E2 executive. 2. Reviewing Officer : The executive next higher in rank and grade to the

Reporting Officer and to whom the Reporting Officer reports. In case of Officers reporting to the complex head at ED level, Reviewing Officer will be the concerned functional Director. 3. Higher Authority : The executive next higher in rank and grade to the

Reviewing Officer and to whom the Reviewing Officer reports. 4. Personal Staff and Directly Reporting Staff: The respective Controlling

Officer will be the Reporting Officer of personal staff and directly reporting staff. The Reviewing Officer and Higher Authority will be as per clause above. 5. In case the specified level of Officers noted above is not position, the next

higher officer will evaluate in his place. 6. Accepting Authority : Appraisal report after being routed through Higher

Authority is to be placed before the Accepting Authority, as indicated below. who in turn is required to pass on the Appraisal Form to the Appraisal cell at corporate office. SI No. 1. 2. 3. 4. weight age. LEVEL OF APPRAISE E7 and above Es and E6 E3 and E4
EO, E i and E2

LEVEL CMD

OF

PERUSING

AUTHORITY Director Executive Director General Manager

For executives reporting to CMD, ratings given by CMD will be final and carry 100%

CALENDER OF APPRAISAL ACTIVITIES : A calender of appraisal activities has been elaborated upon with scheduled a date which has been indicated at Annexure-I of the executives' performance appraisal system. These activities will be carried out and monitored as per scheduled by appraisal cell and other responsible officers as depicted in Annexure-I. It is high lighted that submission and receipt of reports in Appraisal Cell as per the calender enclosed in Annexure-I is important. In order to prornpt all concerned to take action within the time frame, it has been decided that in case the reports re not received in time by Appraisal cell, the next annual increment of the officer concerned with the defaulting stage is liable to be take into account in considering promotion / training needs. Co-operation of all concerned to stick to time limii it. uieicfuie kupuiUuii for ihe success of the system. Provision For Moderation Committee and Timely completion and Submission of Appraisal Booklet: For effective implementation of the revised executive Performance Appraisal System and to ensure strict adherence and abidement to the Appraisal calender as well as to balance in the soft and hard ratings within grades, disciplines, departments and units, it has been decided to introduce the following provision in the Executive Performance Appraisal System w.e.f. the Appraisal year 1998-99. (A) Inclusion of common key task for all executives in Form "B" and Form
DI

that reads thus :- "timely completion and submission of

Appraisal Booklet as per the appraisal calendar". (B) Formation of the Moderation Committee. COMMON KEY TASK IN FORM "B" AND FORM D, : It has been observed that very few Appraisal Booklets re being received as per the schedeled detailed in the appraisal calendar in spite of the penal provision contained in clause 5.2 dated 22.05.1995. Appraisal Booklets re usually completed in haste and re being submitted very late, almost in the last moment, inspite of constant follow-up with all concerned. In order to further ensure the timely submission of Appraisal booklet and strict adherence to Appraisal calendar, it has been decided to have one compulsory key task timely completion and submission of Appraisal Booklet as per the Appraisal

calendar in Form "B" and Form

DI

of Appraisal Booklet for each Appraise with

weight age factor of 0.05 out of the wieght age of 1.0 for all executives. It is the responsibility of the Appraise the Reporting Officer, the Reviewing Officer and the Higher Authority to strictly adhere to the calendar of appraisal activities. Accordingly, each executive is to be rated by as appraise, Reporting Officer, Reviewing Officer ( as applicable) w;.r.t. the appraisal calendar against the above compulsory task in Form DI . FORMATION OF MODERATION COMMITTEE ;In order to take care of the variations in rating, a Moderation Committee hasw been formed. The main objectives of the Moderation Committee re as follows. 1. To balance the soft and hard ratings and to ensure an equitable assessinent with in the grade, discipline, department and unit. 2. To correct over under ratings m departments, areas and sections which have not achieved, exceeded the targets. Keeping in view the above objectives two committees have been formed for moderation. (a) Committee- I :-This will consists of 3 members having Executive Director, concerned General Manager and another General Manager to deal with cases of executives up E4 level. (b) Committee - II:- This will consist of 3 Directors including concerned functional Director to deal with cases of Executives of E5 level and above. The above committes will look into cases of variations of the following nature. 1. In case of final overall performance of the appraisee being C (poor) i.e. below 50% in form "F". 2. 3. In case of appraisee securing below 50% is either Form DI, D2 or D3. In case of variation, 40% and above between the ratings of the reporting officer and the reviewing officer in either Form Di, D2 or D3.

4.

All appraisals having A+ (outstanding) will be referred to the Moderation Committee.

5.

Incase

of appraisals

having

speciflc

remarks,

observations

of higher

authority regarding over or under ratings shouid be referred to Moderation Committee. 6. Inc ase of executives for whom the Chief Managing Director is the reporting or the reviewing officer, the concerned Moderation Committee. appraisals will not be sent to the

APPRAISAL YEAR 2000-2001. a. Appraisal atter being routed through higher authority is to be placed before the accepting authority. b. After being moderated the final moderated ratings re to be placed before the authority as given below.

Level of appraissee E-O to E-4 E-5 and above.

Leval of accepting authoritv. Functional Director Chief Managing Director.

The appraisal cell after checking the appraisal rating in respect of executives having the above variations will refer sucyh cases to committee l or committee 2 as the case may be for moderation. The recommendations of the moderation committee will be put up to the Chief Managing Director for approval and acceptance of the final rating. The accepted final ratings will be entered in the appraisal dossier of the concerned executives by the appraisal cell. EVALUATION : Systematic employee appraisal techniques came into promonence during the Ist World War. At the time at the instance of Walter Dilly Scott. The U.S. Army adopted the "man-to-man" rating system for evaluating military personnel. During the 1920's

and 1030's the industrial units adopted rational wage structures for their hourly paid employees appraisal plans were called merit rating programs which was the most wodely accepted designation up to the mid-fifties.

Most of the merit rating plans from the 1920 to the mind 1040's was of the rating scale type with emphasis on factors, degree and points. In the early 1050's however great interest developed towards the performance appraisal of technical, professional and managerial personnel. It was recognized that appraisee on a systematic basis, was in integral part of a well-designed devalopment programme. Later on the term merit rating was replaced by new terms employee appraisal and performance appraisal.

THE EVALUATION PROCESS :-

Stolz observes that " the process of performance appraisaol follow a set pattern, Viz; a man's performance is periodically appraised by his superior". Performance Appraisal process consists of several steps.

The process of evaluation beigins with the establishments of "performance standards". At the time of designing a job and description, standards re usually developed for the position. The next step is to communicate these standards to the employees, for the employees left to themselves would find it difficult to guess what is expected of them. to make communication effective "feedback" is necessary from the subordinate to the Manager. The third step is the "Management of Performance" to determine what actual performance is, it is necessary to acquire information about it. The forth step is the comparison to actual performance with standards. The employees, where good points, weak points and difficulties are indicated and discussed so that performance is improved

FLOW OF APPRAISAL SYSTEM:

At first the reporting officer will infirm to the appraise about the department/section & objectives & targets. Then the appraise will identify the key performance areas (KPAs), key tasks & addition tasks. Both reporting officer & appraise mutually agree to set of targets. The reporting officer discussed wit the appraise before .Training needs, along with any needs, like study tour, visit to other place like etc. As finally recommended by the reviewing officer, & it will be intonated by the Training Dept. The mutually decided targets will be reviewed twice in a financial year .The objectives of this reviews will be to focus on the extent of achievement of mutually agreed targets & give an oral feedback. The review is done in 1st week of July & 1st week of January positively. Annual targets achievement appraisal is done by Reporting & reviewing officials .Annual target is compared against achievement in terms of quality, quantity & time frame as the case may above .The appraise will be appraised on managerial traits i.e. six performance factor &9 potential factor at the end of year . Appraisal form is routed through Higher Authority &Accepting Authority for their observation . Final over all score &is grade is calculated by appraisal cell after modification.

PROCEDURE FOR (EXECUTIVES)

Steps Department Office Employees receives Adverse comments Comments adverse To employee. Analysis Training needs Implementation Concurs/receives HOD comments/ Concurs receives before 6th May Reviewing Officer Assesses In open consultation with the Executives before 20th April Executives does self Assessment before 6th April. HOD forward the form Send form before due date.

ANNUAL

PERFORMANCE

APPRAISAL

Personnel

Unit head

Corporate

PROCEDURE FOR ANNUAL ASSESMENT (NON-EXECUTIVES)

Steps Department Personnel Training

Receives the Adverse comments Communicates the Adverse comments to Employee Analysis HOD comments & Contours /militias(3 days) Reviewing officer concurs/ Modifies (3 days) Reporting officer assesses (1 week) HOD forward Sends from before the Last of December ( by 1st Jan).

TRAINING NEEDS 1. 2. 3.
It has been decided to revise the annual assessment report of non-executive employees .The revised annual assessment report from is at annexure . The annual assessment report in the revised from shall be filled up from the assessment year 1984 .It is clarified that an assessment year is the calendar year i.e. 1st January to December The revised annual assessment report shall apply to non-executive employees , earlier as assessment reports in respect of stenographic /supervisory staff accordingly be discontinued effective from the assessment year 1984. The assessment shall be done in respect of an employee who has put in service of 3 months or more in assessment year.

4.

5.

The report will be initiated by the immediate Reporting officer of the employee whom he has worked for minimum period of 3 months . In case an employee has completed more than 3 months under two more reporting officer separate reports will be prepared by each one for the respective. The reports will reviewed by an officer reports .In case of supervisory employees the reports must necessarily by concerned HOD. The reports where an employee has been rated as outstanding or poor will invariably be submitted to the Concerned General Manager for perusal Any adverse remarks including poor overall rating should be communicated by the personal department within 30 days of receipt of the report to the employee concerned clearly stipulating the areas where the performance conduct has been lack by so that the employee may improve upon .The employee may appeal against the adverse report within 30 days of communication to the general manager whose decision on the matter be final & pending .No further appeal will be entertained. The reporting officers/reviewing officers specifically substantiate adverse ratings. The assessment dossiers of the employees will be maintained by the unit personnel department . The personnel department should take timely action so as to ensure that assessment reports are made by 31st march every year. All reporting /reviewing officers are request to co-operate with the personnel assessment of the employee.

6. 7.
.

8.

9.

10.

11.

GUIDANCE FOR ASSESSORS: 1. Base

your judgment on the entire review period & not on isolated incidence. relations to the requirements of the

2. Consider only on one item at a time & rate only in

present employees.

a strong or weak quality under one attribute does not influences your judgment of employees standing on the rest.

3. Please make sure that

4.Base all your assessments on the direct knowledge of employees performance

on the employee. Qualified value is indicated below: Outstanding = 5,Good = 4,Average = 3,Below average = 2,Poor =1

on the job.

5Use general remarks column for any amplification ,addition or explanations of your opinions

CHAPTER-6

CHAPTER- 6
DATA ANALYSIS
Approved by Effective Date Replaces /modification clarification It has been decided to revise he annual assessment report of Non _ Executive employee with a view to obtain an objective assessment of the competence & ability of an employee from his superior officers who have an opportunity to supervise & observe his work closely . This will enable to build up an inventory of human assets & to know our links in decided whether further training & career Development are necessary . The revised annual assessment report form is at annexure . The appraisal under the new system will relate to a financial year. However , the 1st appraisal period will relate to 15 months from 01.01.95 to 31.03.96, in order to maintain continuity . The appraisal shall be done in respect of an employee who has put in service of 3 months or more in an assessment year. The front page of the annual appraisal form will be by the concerned HRD Department. Thereafter the blank appraisal forms will be sent to the Department heads for appraisal of the employees by the Reporting / Reviewing officer.

Great care should be taken in writing a appraisal Report , since the same is linked up with the career growth of the employees . The reporting officer should avoid hasty opinions & conclusion based on insufficient data or hearsay . Assessment against each item of the report should be made very clear & care should be taken to avoid vague & incomplete remarks . It is essential to state in what extent the individuals has exhibited the various qualities during the period under report .

While recording adverse remarks in the appraisal Report, it should be ensured that the individual has already been warned / punishment imposed /reprimanded &that the individual has not shown any improvement. The assessment made by the reporting officer is to be reviewed by superior officer. The review is necessary to minimize operation of subjective human elements and of conscious or unconscious bias on the part of the reporting officer. To achieve this reporting officer should have sufficient knowledge of the work and qualities of the person reported upon, so as to enable him to judge whether his report is correct and fair. The reports where an employee has been rated as outstanding or poor will invariably be submitted to the concerned unit head . the intension is that extreme ratings are carefully viewed. It will be the duty of the departmental heads to decide whether any remarks made by the reporting officer / reviewing officer are to be communicated to the employee concerned. In such cases he should record his opinion in definite terms stating the reasons therefore. All representations against adverse remarks should be examined by the HOD in consultation with the reporting officer / reviewing officer, if found necessary. The appraisals of the employees will be maintained by the concerned HRD department. The department should take timely action so as to ensure that blank appraisals forms shall reach the HOD s by the 1st april every year. The reporting officer will appraise the performance of the employee at the earliest convenience but before 13th april. The HOD will countersign the report and record his observations and pass on the same to the HRD department by 30th april. All concerned are requested to strictly adhere to the time schedule for proper and timely appraisal of the employees. The performance appraisal system serves as an important tool for the development of the employees but its effectiveness depends on the importance placed on it.the system works when appraisals are factual, honest, and they encourage employees to set and achieve both work and personal objectives. It is therefore essential that the appraisal should be an honest reflection of the employees attitude, abilities, output and discipline.

The following points may be born in mind while filling up the performance appraisal forms: Assessment should be based on the entire period covered and not on isolated incidents. Assessment should be done in relation to his present position only. Tendency to over-rate or under-rate should be avoided. while assessing the performance of the employees at the end of the appraisal period, it is expected that shortfalls, if any, in performance would have been brought to the notice of the appraise from time to time during that period. This gives an opportunity to the employees to overcome their deficiencies. As employees in the grades of s1 to s4 constitute the top rank in the non-executive category it would be worth while to have a discussion on their performance in the middle as well as the end of the appraisal period. These discussions would in still in theme a sense of involvement in the job. Besides , these discussions, preferably recorded, would immensely help in a more objective performance appraisal. The appraisal must review past performance but it is important for us to concentrate on agreeing challenging objectives on developing our appraisee.

The time table indicating dates on which various appraisal activities to be initiated and completed is shown at the back page of the form. These deadlines should be strictly adhered to.

1. Assessment is required to be made on 5 point scale as given below: Out standing Very good Good Average Poor 05 04 03 02 01

2. Assessment in respect of employees in the unskilled and semi-skilled category will be made on 12 factors. Employees in skilled and highly skilled category will be assessed for 17 factors. While employees in supervisory category will be assessed for 08 additional factors making a total of 25 factors.

(1) Reporting officer will be the executives under whom the appraisee works atleast for a period of 03 months in the assessment year. Reviewing officer will be the executive to whom the reporting officer reports. Wherever the appraisee reports to more than one reporting officer . 1. what is performance appraisal from your point of view? Options An annual ritual A management gimmick An evaluation process No: of respondents 10 4 36 Percentage 20% 8% 72%

annual ritual management gimmick evaluation process Slice 4

From the table / diagram it reveals that in NALCO, 20% of the employees feel that the performance appraisal is an annual ritual and only a minor percentage that is 8% feel that it is a management gimmick and the maximum 72% feel that it is an evaluation process which helps them in evaluating their performance and also in their career growth.

2. what should be the basic thrust in the current appraisal system? Options Performance Experience & seniority Performance with personality traits & managerial skills. No: of respondents 9 5 36 Percentage 18% 10% 72%

performance

seniority&exper ience

performance with personality traits&manageri al skills 4th Qtr

From the table / diagram it reveals that in NALCO, 18% of the employees feel that the basic thrust in current appraisal system is performance, 10% feel that it is experience and seniority and maximum 72% feel that it is performance with personality traits and managerial skills. so it is a combination of all the potential and performance factors that plays a role in the appraisal system.

3. who sets the goals and targets of the performance appraisal system in NALCO? Options Reporting officer Reviewing officer Both No: of respondents 05 05 40 Percentage 10% 10% 80%

reporting officer reviewing officer both Slice 4

From the table / diagram it reveals that in NALCO, 10% of the employees feel that the goals and targets of the performance appraisal are set by the reporting officer and 10% feel that it is by reviewing officer but the maximum employees 80% say that it is set by both the reporting officer and the reviewing officer. These people help the employees in the appraisal system by explaining them the goals and targets set by them for conducting the performance appraisal system in an efficient manner.

4.Has the performance appraisal in the organization leads to career growth ? options Yes No Cant say No: of respondents 40 05 05 Percentage 80% 10% 10%

yes no can't say Slice 4

From the table / diagram it reveals that in NALCO, 80% of the employees feel that the performance appraisal leads to career growth. Only 10% said no and 10% cannot say anything. In the case of executives for promotion out of 100 marks performance appraisal carries 80 marks, seniority carries 10 marks, and interview carries 10 marks. And in the case of nonexecutives out of 100, appraisal carries 40, written carries 40 and interview carries 20 marks.

5.Are the performance targets that are set explicit in nature?

Options Yes No Cant say

No: of respondents 44 06 00

Percentage 88% 12% 00

yes no cant say Slice 4

From the table / diagram it reveals that in NALCO, 88% of the employees agree that the performance targets that are set explicit in nature. And minor 12% of the employees say that they are not explicit in nature due to dilatory tactis. So the maximum people feel that the targets are explicit in nature .

6.At what time interval the performance appraisal will be carried on? Options Every quarter Every 6 months At the end of the year No: of respondents 10 25 15 Percentage 20% 50% 30%

every quarter every 6 months at the end of the year Slice 4

From the table / diagram it reveals that in NALCO, 20% 0f the employees feel that performance appraisal will be carried for every quarter and 50% of the employees feel that it is carried for every 6 months and 30% of the employees say that it is carried at the end of the year. But if the performance appraisal is meant for mid year review then it is carried for every six months.

7.Would you like to participate in the appraisal process to set targets, and discuss training needs? (for non-executives) Options Yes No Cant say No: of respondents 22 12 16 Percentage 44% 24% 32%

yes no cant say Slice 4

From the table / diagram it reveals that in NALCO, 44% of the employees (non-executives) are interested to participate in the appraisal process to set targets and goals for the system and 24% of the employees do not want to participate and 32% of the employees did not give their opinion in this matter. But in NALCO, the reporting officer as an appraisee is involved in the appraisal process for the executives but there is no provision for non-executives to participate in the appraisal process to set up the goals and targets.

8.The purpose of performance appraisal in the organization is? Options Determining salary increments Deciding promotion Identifying candidates for succession plan No: of respondents 03 47 00 Percentage 06% 94% 00

determining salary deciding promotion identufy candidates for succession plan Slice 4

From the table / diagram it reveals that in NALCO, 06% of the employees feel that the purpose of the performance appraisal is to determine the salary increments and 94% of the employees feel that it is for the purpose of their promotion. So the main purpose of the performance appraisal in the NALCO is to decide the promotion of the employees depending on their performance levels.

9.which of the following required conditions the organization has? Options No: of respondents Percentage 10% 10% 10% 70%

General climate of openness, 05 mutual trust Helpful & empathetic attitude of management Sense of participation by subordinate All of the above 05 05 35

general climate for openness and trust helpful management participation by subordinate all

From the table / diagram it reveals that in NALCO, 10%of the employees feel that there is general climate for openness and mutual trust and 10% feel that helpful management is there and 10% feel that participation of subordinate is there and maximum 70% feel that all of the above conditions are existing in the organization.

10what sources of information used by appraisers to judge the performance of an appraise.? Options Periodic reports in prescribed forms The superior relies on his memory Discussion with concerned subordinates & other managers. The subordinate is asked to make a self appraisal No: of respondents 11 02 37 0 Percentage 22% 04% 74% 0%

periodic reports

superior's memory discussion with subordinates&ot her managers self appraisal

From the table / diagram it reveals that in NALCO, 22% of the employees feel that the sources of information used by appraisers to judge the performance is done through periodic reports in prescribed forms and 04% think that the superior relies on his memory and maximum 74% feel that it is gathered through discussion with concerned subordinate & other managers. So the information is mainly collected by the appraisers through consulting the subordinates.

11.guidelines that are provided to help while conducting performance appraisal are?.

Options Very specific and helpful Too general to be of any help No guidelines are provided

No: of respondents 38 12 00

Percentage 76% 24% 00

specific & helpful too general no guidelines Slice 4

From the table / diagram it reveals that in NALCO, 76% of the employees agree that the guidelines provided are very specific and helpful and 24% of the employees say that they are too general to be of any help. So in the case of executive appraisal these guidelines are very helpful but not in the case of non-executives. While doing performance appraisal system, usually they have meeting or post performance counseling meeting.

12.what factors considered while approaching for the performance appraisal.? Options Job factors Potential factors Performance factors All the factors No: of respondents 08 07 10 25 Percentage 16% 14% 20% 50%

job factors potential factors performance factors all the factors

From the table / diagram it reveals that in NALCO, 16% of the employees feel that job factors are considered while approaching for the performance appraisal, 14% feel that potential factors are considered , and 20% feel that performance factors are considered. But the maximum employees feel that all the factors are considered while performance appraisal as these factors help them in getting promotions and further improvement in their career growth.

13.Do they conduct performance appraisal review meeting scheduled intervals as stipulated in the system.?

Options Yes No

No: of respondents 33 17

Percentage 66% 34%

yes no Slice 3 Slice 4

From the table / diagram it reveals that in NALCO, 66% of the employees feel that the performance appraisal meetings are conducted as per scheduled times but 34% of the did not agree with this. According to them the management feels that it is a waste of time and manpower, so they do not give any attitude and importance to it. So conducting performance review meetings is very essential in the organization, to know the performance of the employees.

14.At performance appraisal review meeting or during counseling the things discussed are? Options No: of respondents Percentage

Strengths / weaknesses Goals for the next appraisal Areas in which he / she needs to be improved Training needs / her performance during the previous year All the above

10 08 06 05 09 12

20% 16% 12% 10% 18% 24%

strengths / weaknesses goals for next appraisal areas to be improved training needs performance in previous year all

From the table / diagram it reveals that in NALCO, 20% of the employees say that strengths and weaknesses are discussed during the review meeting, 16% say that goals for next appraisal are discussed, 12% say that areas in which the employees lack are discussed, 10% say that training needs are discussed and 18% say that performance during previous year is discussed and 24% say that all the above things are considered in the review meeting. So all the factors are considered to come into a conclusion regarding the performance of the employees and rate them according to that for further actions.

15.You feel the performance appraisal review meeting with the appraiser?

Options Very useful Are done only as a formality Moderately useful

No: of respondents 25 10 15

Percentage 50% 20% 30%

very useful done as a formality moderately useful Slice 4

From the table / diagram it reveals that in NALCO, 50% of the employees feel that the performance appraisal review meeting is very useful, 20% of the employees feel that it is done only as a formality because they did not find any results with this and 30% of the employees feel that it is moderately useful. So the meeting should be made very useful to all the employees by explaining them the problems and consequences of it. They should also be allowed to know their ratings so that they can bring improvements in their performance.

16.Should appraisal be done more frequently? Options No: of respondents Percentage

Yes No

10 40

20% 80%

yes no Slice 3 Slice 4

From the table / diagram it reveals that in NALCO, 20% of the employees feel that the appraisal process should be done more frequently and 80% of the employees feel that there is no necessary to do the appraisal more frequently as they are satisfied with the present system. It is done for every six months.

17.Any specific suggestions to offer to make the existing appraisal more objective & scientific?

Options Yes No

No: of respondents 20 30

Percentage 40% 60%

yes no Slice 3 Slice 4

From the table / diagram it reveals that in NALCO, 60% of the employees do not want to offer any specific suggestions to make the appraisal system more objective & scientific but 40% of the employees are interested to offer suggestions like a chapter should to be included to measure the attitude status of the appraise by using available psychological tools and also more information that would help the employee in giving a clear cut idea about appraisal.

18.Sometimes it is said that the appraisal system in an organization is good, but the implementation is poor. Does this happen in the organization ?

Options Yes No

No: of respondents 21 29

Percentage 42% 58%

yes no Slice 3 Slice 4

From the table / diagram it is said that in NALCO, 42% of the employees said that the implementation of appraisal system is poor in their organization .this is due to lack of time & interest on the part pf the appraisal, all levels do not feel it as important and due to faults in the appraisal system. But 58% of the employees agree that the performance appraisal system is good in its implementation also.

19.Are appraisals in the organization done in hurry & least effort? Options No: of respondents Percentage

Yes No

24 26

48% 52%

yes no Slice 3 Slice 4

From the table / diagram it reveals that in NALCO, 48% of the employees feel that the appraisals are done in hurry and least effort due to lack of interest or for some other reasons. And 52% of the employees feel that they are not done in hurry and least effort. But to satisfy all the employees there should be good coordination among the employees and mutual understanding between the appraise and appraiser.

20.Would you like to see the following changes in your performance appraisal process? Options No: of respondents Percentage

Provision for pre & post appraisal interviews Introduction of evaluation by a committee Change in appraisal format Training on performance appraisal skills

10 05 15 20

20% 10% 30% 40%

provision for pre&post appraisal interview evaluation by committee change in appraisal format training on appraisal skills

From the table / diagram it reveals that in NALCO, 20% of the employees want provision for pre & post appraisal interview, 10% of the employees require an evaluation committee, 30% of the employees wanted a change in the appraisal format and 40% of the employees require training on performance appraisal skills.

FINDINGS:
1. The performance appraisal in NALCO is in a systematic manner providing opportunities to its employees.

2. The data that is for executives Management By Objectives is more efficient method 3. Majority of the respondents felt that there is proper recognition for the employee for their efforts and their achievements towards their work. 4. For non-executives the ratings are done through Paired Comparison method as well as Group Application method. 5. NALCO provides training needs to its employees by evaluating their all round performance . 6. In NALCO the relation between appraise and appraiser is very mutual and cordial. 7. In NALCO, once in a month seminars are conducted which helps employees to increase and gain more knowledge. 7. The superiors in NALCO follow open door policy which helps subordinates to share and maintain a healthy environment.

RECOMMENDATIONS:
1. An atmosphere of mutual trust and confidence should be created. Such atmosphere is necessary for frank discussion of appraisal. It also helps to obtain the faith of employees in the appraisal system.

2. well-defined performance factors and criteria should be developed and standardised. It will help to ensure uniformity and comparisons of ratings. 3. The raters should be required to justify their ratings. Documentation will encourage evaluators to make conscious efforts to minimize personal bias. 4. While designing the appraisal system individual differences in organization should be recognized as organizers differs in size, nature, and environment, therefore the appraisal system should be adaptable. 5. After appraisal an interview with the employees should be arranged. It is necessary to know the difficulties under which the employees work and to identify their training needs. 6. A mechanism for review of ratings should be provided. The review may be a committee consisting of line executives and personnel experts. The committee will see whether the raters are unusually lenient or strict.

CONCLUSION
To describe the term impact of performance appraisal on work culture is very much large. proper training and well development of each and every employee is needed for overall customer orientation and customer satisfaction.

Performance appraisal is the blood and bone of an organization, without which the entire organization collapses and is ruined, and it is very vital to maintain it in this present scenario. To bridge up the gap between present and future, performance appraisal is a systematic tool, but very often we find that sometimes people in the organization are hesitate to involve themselves in the process of change or we can say that they are not interested to change the work culture and organization environment at large due to various organization politics and fear i.e., loss of job, fear of replacement etc. In this situation proper moralization is essential to make the total system a success. A proper performance appraisal system not helps the organization to make in a right path but also prepare the organization to face the future changes. So to adopt the process of change the proper training and development is very much needed. Therefore, here we conclude that performance appraisal is an important weapon to modify the work culture and has great impact to develop the society. Thus, performance appraisal is the most significant element of the information and control system in any firm. It can be put to several uses concerning the entire spectrum of Human Resource Management Functions.

CHAPTER-7

CHAPTER - 7
ANNEXURE FORMS OF THE ORGANISATION

NATIONAL ALUMINIUM COMPANY LIMITED PERFORMANCE TARGET SETTING EXERCISE SHEET

This form is only an exercise to help appraise to set the targets with reporting officer in line with the internal MOU / action plan of the department / shop unit. KEY PERFORMANCE AREAS 1. 2. 3.

SL NO

1.

KEY TASKS Timely completion& submission of appraisal booklet as per appraisal calendar.

WEIGHTAGE

0.05

TARGET As detailed in appraisal calendar.

REMARKS

NATIONAL ALUMINIUM COMPANY LIMITED

TASKS & TARGETS FOR THE PERIOD _______________ - _____________ This is to confirm that all the key tasks agreed to and represent the major yearly workload of the appraise and are in line with the internal MOU/ action plan of the department/shop/unit. Name : Design : personal number:

Key performance areas 1. 2. 3.

SL NO 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

KEY TASKS Timely completion &submission of appraisal calendar.

WEIGHTA GE 0.05

TARGET As detailed in appraisal calendar.

REMARKS

Weightage of all key tasks including additional tasks if any, should be 1.0 Signature of appraisee: signature of reporting officer: signature of reviewoficer Name: name: name: Designation: designation: designation: Date: date: date:

NATIONAL ALUMINIUM COMPANY LIMITED PERFORMANCE REVIEW (During 1st week of july)
A. comments on achievement with respect to tasks agreed in form.

B. Reasons for variance. If any.

C. Suggestions for improvement.

D. Special tasks, if any (indicate allocation of weightage & adjustment against original KPAs)

Signature of appraisee:

date of review meeting:

signature of repo officer

NATIONAL ALUMINIUM COMPANY LIMITED

ANNUAL TARGET ACHIEVEMENT APPRAISAL FOR THE PERIOD ____________ TO_______________ The reporting officer and the reviewing officer will separately rate the appraisees target achievement in terms of percentage with reference to annual target in terms of quantity/ time frame/ date in column b&c respectively.

SL KEY NO TASKS Timely completion &submit of appraisal booklet as per calendar

WEIGHTAGE(A) 0.05

TARGET As detailed in calendar

ACHIEVEMENT IN QTY/ DATE

REPORTING OFFICER(B)%

REVIEW OFFICER (C)%

B. 1. 2. C. 1. 2.

Additional tasks

Special tasks, if any assigned during the year.

Total of weighted average (to be done by appraisal cell only) Total weightage points for all key tasks , special tasks should add to 1.0 only Weighted average = [A * (0.7B + 0.3C]

OBSERVATION OF REPORTING OFFICEER

Signature of appraisee: Date:

signature of reporting officer: Name: Designation: Date:

OBSERVATION OF REVIEWING OFFICER

Signature of reviewing officer: Name: Designation: date:

MANAGERIAL SKILLS APPRAISAL (PERFORMANCE FACTORS) FOR PERIOD _____________ TO _______________ The reporting officer and reviewing officer will assess the concerned executive on his / her managerial traits on the following scale: SCALE: 0.0 1.0 2.0 Well below below Expected expected 3.0 as expected 4.0 better than expected 5.0 well above expected.

Basing on these performance factors the reporting officer and the reviewing officer rates the employee as well below expected, below expected, as expected, better than expected, and well above expected. Depending on these performance traits the reporting officer and the reviewing officer rates the employee for their career growth and for poor performance they will have an opportunity to upgrade themselves regarding job knowledge, managerial effectiveness, communication skill, planning and organizing, problem solving, analysis and decision making and also in human resource utilization and development.

SL NO:

ATTRIBUTES

RATINGS REPORTING & REVIEWING OFFICER 1 2 3 4

1. 2. 3. 4. 5. 6. 7. 8.

supervision control planning coordination organizing ability response under pressure record keeping ability to communicate

Managerial skill (performance factors) 1. JOB KNOWLEDGE Exhibits managerial/technical skills commensurate with his / her levels of assignment in the job. Constantly applies his / her knowledge and skills to improve results in the work area. Exhibits sincerity to keep on learning. MANAGERIAL EFFECTIVENESS Co-ordinates with other departments and develops relationship with colleagues to achieve desired levels of performance. Seeks timely intervention of superiors to solve problems & usually gets support of superiors Possesses the ability to appreciate / analyze the concepts/objectives of supervisors and adjusts him/ her to the work style of their superiors. COMMUNICATION SKILL Possess clarity and precision in both oral and written communication & presentation. Listens actively and displays concern to grasp ideas & instructions. Gives timely feedback & makes planned efforts for free flow of information between all concerned. Ensures that his / her subordinates know company / departmental plans & policies.

Wt (A) 0.25

Rep. Off(B)

Rep.Off F (C)

Rev Off (D

2.

0.15

3.

MANAGERIAL SKILL (Performance factors) 1.

WT(a)

REP REP.OFF off(b) (F) (C)

REV.OFF (D)

PLANNING&ORGANISING Anticipates problems, develops Alternative strategies to prevent frequent Failures/crises. Priorities activities &mobilizes /allocates Resources accordingly. Coordinates at parallel levels for Resources. Monitors/reviews and improves Planning &coordination. PROBLEM ANALYSIS & DECISION MAKING has the ability to assess a situation and break it into its logical components. Seeks information and evolves alternative Solutions. Shows promptness & confidence in decision making HUMAN RESOURCE UTILISATION AND DEVELOPMENT Possess the ability to obtain the desired Levels of performance from employees Working under him / her. Possess control over people and ensures Good discipline, high level of motivation and Teamwork. Has the ability to build and improve competence Of subordinates. Provides timely guidance to people working. WEIGHTAGE

2.

3.

TOTAL

Weighted average to be calculated by appraisal cell only Total of weighted average = Weighted average = [A*(0.5B+0.25C+0.25D)] / 5 where b, c, d, will be the score of respective factors. In the absence of reporting officers (f), the weighted average score will be computed as [A*(0.5B+0.5D)] / 5 where b, d, will be the score of respective factors.

MANAGERIAL SKILLS APPRAISAL (POTENTIAL FACTORS) FOR PERIOD____________- TO _______________ The reporting officer, reporting officer (F) and reviewing officer will assess the concerned executive on his / her managerial traits by rating on the following scale: SCALE: 0.0 1.0 well below expected MANAGERIAL SKILL (potential factors) 2.0 below expected WT (A) 3.0 as expected 4.0 5.0 better than well above expected expected REV.OFF (D)

REP REP.OFF OFF(B) (F) (C)

1. ABILITY TO RESOLVE CONFLICT Able to identify potential sources of Conflict affecting a work situation. Makes efforts to resolve such situations By careful planning and appropriate Strategy. 2. ABILITY TO DELEGATE Delegates and involves his / her Subordinates so that he / she is not Found to be over burdened with Work. Develops and encourages his / her Subordinates to better their performance 3. COST AND TIME CONSCIOUSNESS Displays conscious concern for control, Benefits and profits for the company. Makes optimum utilization of resources And supports cost reduction drives. Displays conscious concern for time Schedule affecting both external and Internal customers.

MANAGERIAL SKILL (potential factors)

WT (A)

REP OFF(B)

REP.OFF (F) (C)

REV.OFF (D)

4. AWARENESS ABOUT WORK BUSINESS ENVIRONMENT Keeps abreast of the latest Developments, technological Changes taking place in the Environment. Contributes to professional Journals & associates with Professional bodies. 5. C0MMITMENT & SENSE OF RESPONSIBILITY Exhibits dedication to work & Company objectives Exhibits reliability & perseverance To complete assigned tasks. 6. INTERPERSONAL SKILLS Possess ability to get along With superiors, peers, subordinates And clients / customers. Exhibits loyalty and tact

Weighted average to be calculated by appraisal cell only. Total of weighted average = Weighted average = [A*(0.5B+0.25C+0.25D)] / 5 where b, c, d will be the score of respective factors.

MANAGERIAL SKILL (potential factors)

WT (A)

REP REP.OFF OFF(B) (F) (C)

REV.OFF (D)

7. CREATIVITY & INITIATIVE Is a self starter & possesses Ability to generate new ideas. Is able to approach and analyze Problems from various angles and Come out with workable solutions. Makes continues efforts to innovate And improve systems and procedures In his / her own area of work. Takes initiative in work and till the End of the task. 8. POSITIVE MENTAL ATTITUDE & LEADERSHIP QUALITIES Is flexible and open to change Has the drive and enthusiasm Of an entrepreneur. Leads subordinates by assigning Appropriate tasks for motivating Them. Continuously endeavors to Train and develop them. 9. SELF DISCIPLINE AND SENSITIVITY TOWARDS ORGANISATIONAL NEEDS Shows extremely good behavior and Conduct. Fully participates in the implementation Of company rules and policies. Is sensitive towards the needs of the Organization, especially those of the line / staff functions. TOTAL WEIGHTAGE

A. OBSERVATION ON JOB ROTATION: 1.RECOMMENDATIONS OF REPORTING OFFICER ON JOB ROTATION, IF ANY:

2. RECOMMENDATIONS OF REVIEWING OFFICER ON JOB ROTATION

IF ANY:

B. IDENTIFICATION OF MAJOR STRENGTHS AND WEAKNESSES OF APPRAISE.

(ref. Clause 6.5 of guidelines available with appraisal booklet) THREE MAJOR STRENGTHS THREE MAJOR WEAKNESSES

C. INTEGRETY
Above board YES NO If no, separate note sheet is to be sent to GM (HRD), corporate office (ref. No. and date is to be furnished.

NATIONAL ALUMINIUM COMPANY LIMITED FINAL ASSESSMENT FOR THE PERIOD _____ TO ____ To be prepared by appraisal cell only
Name : ___________________ Designation: __________________

Personal no : ______________ Dept: ______________ Unit : ________________

B. ALLOCATION OF WEIGHTAGES LEVEL Junior E0 to E3 Middle E4 to E6 Senior E7 to E9 TARGETS (X) 60 45 30 PERFORMANCE FACTORS (Y) 20 25 30 POTENTIAL TOTAL FACTORS(Z) (X+Y+Z) 20 30 40 100 100 100

C. TABLE FOR DETERMINATION OF OVERALL GRADE

SCORE Above 90% Above 80% & up to 90% Above 70% & up to 80% Above 60% & up to 70% Above 50% & up to 60% Below 50 %

RATING out standing excellent very good good fair poor

OVERALL GRADE A+ A B+ B C+ C

CHART FOR CALCULATION OF FINAL SCORE SL NO 1. 2. 3. SUBJECT WEIGHTAGE SCORE FINAL SCORE

Target achievement (d1) Performance factors(d2) Potential factors(d3) TOTAL D. WHWTHER THE CASE IS TO BE REFERRED TO THE MODERATION COMMITTEE.

YES

NO

E. FINAL OVERALL GRADE AND SCORE OF THE EXECUTIVE Signature of officer of appraisal cell : Date : Counter signature of officer-in-charge of appraisal cell: Date : OVERALL COMMENTS: OBSERVATION OF REPORTING OFFICER:

OBSERVATION OF REVIEWING OFFICER:

REMARKS:

CONVERSION TABLE. FOR UNSKILLED / SEMISKILLED EMPLOYEES: TOTAL FACTOR______ 12 MAXIMUM SCORE______60 CORRESPONDING GRADE Out standing Very good Good Average Poor TOTAL SCORE RANGE 54-60 42-53 30-41 24-29 01-23 FOR SKILLED CATEGORY M0 / P0 / T0 & ABOVE : TOTAL FACTOR________17 MAXIMUM SCORE_______-85 CORRESPONDING GRADE Out standing Very good Good Average Poor TOTAL SCORE RANGE 77-85 60-76 43-59 34-42 01-33

FOR SUPERVISORY EMPLOYEES S0 & ABOVE: TOTAL FACTOR______25 MAXIMUM SCORE_______125

CORRESPONDING GRADE Out standing Very good Good Average Poor

TOTAL SCORE RANGE 113-125 88-112 63-87 50-62 01-49

To be filled by all supervisory employees: SL NO: ATTRIBUTES RATINGS REPORTING OFICER 1 2 1. 2. 3. 4. 5. 6. 7. supervision control planning co-ordination organizing ability record keeping ability to communicate. REVIEWING OFFICER 3 4

BIBLIOGRAPHY
Dr. C.B. MAMORIA , PERSONNEL MANAGEMENT, HIMALAYA PUBLISHING HOUSE, MUMBAI. C.B. GUPTA, HUMAN RESOURCE MANAGEMENT, HIMALAYA PUBLISHING HOUSE, MUMBAI. PARICHAYA , MONTHLY MAGAZINE OF NALCO, BHUBANESHWAR.

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