A

PROJECT REPORT

PERFORMANCE APPRASIAL

Organization : National Thermal Power Corporation

Submitted in the partial fulfillment of the requirement for the award of

the degree MASTER OF BUSINESS ADMINISTRATION

Session 2009-2011

SUBMITTED TO:- SUBMITTED BY:-

Mrs. PRIYANKA SHRIVASTAV ANAMIKA

Faculty of MBA Dept. MBA –IIIrd Sem

Roll No. 0928670003

VIT

DEPARTMENT OF MANAGMENT VISHVESHWARYA

INSTITUTE OF TECHNOLOGY

(DADRI)

VISHVESHWARYA INSTITUTE OF TECHNOLOGY

CERTIFICATE

This is to certify that Miss Anamika, Roll No: 0928670003 is a bonafide student of MBA IIIrd

Semester during Session 2009-2011. The Summer Training Project Report entitled “ A Study of HR

Function at NTPC, Dadri Super Thermal Power Project and A detailed study of Training and

Development Activities and practices at NTPC with special Reference to NTPC Dadri ”. has been

prepared by him/her in partial fulfillment of the award of Master Degree in Business Administration of

U.P. technical University, Lucknow.

 

Name of Faculty  HEAD OF THE DEPARTMENT

Ms Priyanka Shrivastav Prof. J.R. Dixit

TABLE OF CONTENT

S. No. Topics Page No.

1. Declaration I

2. Preface II

3. Acknowledgement III

4. Executive Summary IV

5. Introduction – The Organization NTPC 1

6. Problem Undertaken 30

7. Objective of Our Study 31

8. Performance Appraisal - Theoretical Perspective 32

9. Research Methodology 59

10. Data Presentation 61

11. Data Analysis 80

12. Conclusions 92

13. Recommendations 93

14. Limitation 94

15. Bibliography 95

16. Annexure 96

17. Questionnaire 100

DECLARATION

I, Anamika student of MBA 3rd semester in department of management studies, Vishveshwarya Institute

of Technology hereby declare that the project report entitled “Performance Appraisal System with

reference to NTPC” is my own work and the matter enclosed has not been submitted for the award of any

other degree or diploma in the university or anywhere and is conducted under the supervision of Mr. Anil

kumar (Associate Manager, HR) NTPC Dadri.

I hereby declare that all the data and information which this project contains is true as per my knowledge.

During preparation of the project I was honest about the rules and regulation of NTPC and Business

ethics. And I think no data of my project harms any reader of my project directly or indirectly.

DATE: ANAMIKA

PLACE: DADRI

MBA 3rd SEMESTER

PREFACE

The personnel or human resource of an organization are its most important and valuable assets. Therefore,

the management of this resource becomes fundamental to all administrative activities and within the

management of resources, performance appraisal occupies a significant niche and the subject matter of

this study is Performance Appraisal. Despites this phenomenal progress made in the area of Human

Resource Management, the functional and process of performance appraisal continues to remain as major

challenges, facing managers everywhere today and in the foreseeable future too.

The personnel function in developing countries such as India has several distinct traits. It cannot be

compared with the personnel function of advance countries or with that of under-developed countries

though it has certain similarities with both. The element that causes these differences is size, ownership

pattern, and style of management, government legislation and the socio-culture milieu prevailing in India.

It is also necessary to point out that there is no uniformity in the formulation and practice of personnel

policies in the country. These variations are caused by some of the factors indicated above as well as by

the difference in each organization’s philosophy and approach to its human resources.

An attempt has been made to systematically analyze and present relevant research data. The changes that

are taking place in existing or traditional personnel functions or practices are due to the increased

importance being given to functions, such as selection or training, by organizations wanting to identify

and utilize human resources as efficiently as possible. There is now an increasing concern for productivity

and better utilization of human resources at the plant level in an increasingly competitive environment.

These changes that are more towards expanding the role of the personnel function could also be, to some

extent, attributed to behavioral science research into the understanding of human behavior at the work

place

Acknowledgement

We are grateful to Mrs. Priyanka shrivastav for his guidance and support during the compilation of the

project.

We wish to thank Mr. Anil Kumar, (HR Manager) for giving us the permission to carry out the project at

the National Thermal Power Corporation, Dadri.

We also wish to express our gratitude to all the faculty members at NTPC for their invaluable inputs.

Last but not the least we thank the employees of NTPC for their co-operation in the course of our cource

ANAMIKA

MBA III SEMISTER

EXECUTIVE SUMMARY

National Thermal Power Corporation (NTPC) has emerged as a truly national power company, with

power generating facilities in all the major regions of the country. NTPC is committed to the

environment, generating power at minimal environmental cost and presenting the ecology in the vicinity

of the plants. It has 17 power generating plants which contribute to 25% of total power supply in India.

NTPC is ranked 3rd in India for employee satisfaction.

People generally come to work to do a good job. What stands in their way? There are a variety of issues.

An organization owes itself the ability to get as much from the minds of its people as it possibly can.

Developing an employee and providing a path that leads to higher performance and individual

development is often the difference between organizational success or failure. Doing that in a way that is

in alignment with the organization’s goals is “How” this can be accomplished.

In today’s fast changing world employee appraisal and how to enhancing the

Performance of employeeis one of the most important issue faced by the Human

Resource Development in analyzing and evaluating its employees as well as to retain them. It also gives

the employees a chance to look back on what they have been doing.

This project is based on enhancing employee performance through constructive appraisal system and thus

providing developmental programs. It goes in depth into what Performance appraisal system is, what it

stands for and what its impact on employee performance. It tries to explain the advantages and

effectiveness of using two way appraisal system in the NTPC. It contains different types of approaches

that can be used in different set of conditions. The project also tries to throw light on how theory can be

put to practice.

The employees who seek development may also seek opportunity. It is easier them to help grow within

their own organization that it is for them to switch organizations and start new. Given development and

room to grow, most employees will repay the investment through their loyalty.

Employee assessment serves multiple objectives. It is centrally linked to the motivation of employees. It

provides some of the essential components of effective motivational strategies; in particular, feedback

that permits an employee to learn how well he or she is performing; goal or objective-setting that

specifies what the person should be doing; team building that allows the employee to participate along

with peers and his superiors in solving problems that impede his productivity; and monetary incentives

that reward good performance. And special concerned to its impact on career planning programmes of

NTPC

A visit to NATIONAL THERMAL POWER CORPORATION, Dadri was of great help in my project.

ntpc is one of the organizations that are using Self Performance Appraisal system in their organizations.

Here I met Mr. Anail kumar, the associate Manager of establishment HR NTPC, who is one of the

committee members of this multi-source feedback guideline system. He told me about the feedback

system they are using in NTPC, why are they using Performance feedback, what were the programs for

career planning of employees, and their development etc.

Here the objective of this project is to analyze the effectiveness of current employee appraisal programme

which includes employee career planning and employee development strategies adopted by the NTPC and

finding out the loopholes in actual practice.

The methodology adopted was first of all finding what planning made by organization in terms of

employee appraisal and enhancing their performance. A structured questionnaire was prepared and certain

GET’s and Executives were interviewed along with SBU Heads and HR professionals. Open questions

were also asked to them in order to get their

feedback and suggestion. Sampling was done on the basis of availability and convenience. For the

purpose a sample of 300 respondents were selected. In addition to this I also interviewed those employees

leaving the organization in this period. Their response and suggestions were analyzed and consolidated to

reach to the recommendations.

The employee appraisal system in NTPC is up to the mark where as it compare to the other

manufacturing sector. The compensation given to the employees is best in the industry and almost all

employees are satisfied with that but the following area need more concern subjectivity in performance

appraisal not satisfactory, training and development not adequate, no systematic job rotation, no

mentoring system.

In the interview conducted it was revealed Performance appraisal system should need improvement.

Personal interview and 360° appraisal system should be introduced. Better career path for the talented

employees is inadequate. There is no description and also there is existence of favoritism in the work

place.

If these concerns are properly taken care of, then the performance of employee is enhanced. NTPC should

develop its employee career and develop them. Enhanced Compulsory job rotation should be introduced

up to 25% of employee. Training evaluation should also be there. Role clarity must be brought in the

organization by having Job description for each employee, having properly defined reporting relationship

and clearly communicating the performance expectations.

HISTORY

From humble beginnings in the 1880s, the Indian Power Sector has come a long

way

From one small unit in 1880s to 1362 MW in 1947 to over 550 Billion Units in

2006-07

• 1880s – First electrification – small hydel in Darjeeling

• 1889 – Commercial production & Distribution starts in Calcutta

• Indian Electricity Act, 1910.

• 1947 – Power generating capacity only 1,362 MW

• The Electricity (Supply) Act, 1948 – SEB formation

• Creation of central generation companies

• CEA constituted

• 1956 –Industrial Policy Resolution reserves production of power for public

sector

• 1960s and 70s – Impetus for expansion of rural electrification

• 1975 –NTPC and NHPC set up

• 1989 – NPTC set up. Renamed POWER GRID in 1992

• 1991 – Liberalization; amendments in Electricity (Supply) Act

• 1992 – Ministry of Power constituted

• 1995 – Policy for Mega power projects introduced

• 1998 – CERC and SERCs set up

• 2001 – Energy Conservation Act

• 2003 – New Electricity Act

• 2006-07 – Power generation capacity stands at 551.7 Billion Units

VISION

MISSION

“Develop and provide reliable power, related products and services at competitive prices, integrating

multiple energy sources with innovative and eco friendly technologies and contribute to society”

THE COMPANY…

NTPC Limited is the largest thermal power generating company of India. A public sector company, it was

incorporated in the year 1975 to accelerate power development in the country as a wholly owned

company of the Government of India. At present, Government of India holds 89.5% of the total equity

shares of the company and FIIs, Domestic Banks, Public and others hold the balance. Within a span of 30

years, NTPC has emerged as a truly national power company, with power generating facilities in all the

major regions of the country. Based on 1998 data, carried out by Data monitor UK, NTPC is the 6th

largest in terms of thermal power generation and the second most efficient in terms of capacity utilization

amongst the thermal utilities in the world.

NTPC's core business is engineering, construction and operation of power generating plants and also

providing consultancy to power utilities in India and abroad. As on date the installed capacity of NTPC is

24,249MW through its 13 coal based (19,980 MW), 7 Gas based (3,955 MW) and 3 Joint Venture

Projects (314 MW). NTPC acquired 50% equity of the SAIL Power Supply Corporation Ltd. (SPSCL).

This Joint venture Company operates the captive power plants of Durgapur (120 MW), Rourkela (120

MW) and Bhilai (74MW). NTPC is also managing Badarpur thermal power station (705 MW) of

Government of India.

NTPC has set new benchmarks for the power industry both in the area of power plant construction and

operations. It is providing power at the cheapest average tariff in the country. With its experience and

expertise in the power sector, NTPC is extending consultancy services to various organizations in the

power business.

PIPES AT ASH POND

Ash Utilization Division to manage efficient use of the ash produced at its coal stations. This quality of

ash produced is ideal for use in cement, concrete, cellular

concrete, building material. NTPC has also taken proactive steps for ash utilization. In 1991, it set up

temperature in the areas by about 3°c. NTPC is committed to the environment, generating power at

minimal environmental cost and preserving the ecology in the vicinity of the plants. NTPC has

undertaken massive afforestation in the vicinity of its plants. Plantations have increased forest area and

reduced barren land. The massive afforestation by NTPC in and around its Ramagundam Power station

(2100 MW) have contributed reducing the

A "Center for Power Efficiency and Environment Protection (CENPEEP)" has been established in NTPC

with the assistance of United States Agency for International Development. (USAID). Cenpeep is an

efficiency oriented, eco-friendly and eco-nurturing initiative - a symbol of NTPC's concern towards

environmental protection and continued commitment to sustainable power development in India.

POWER PLANT OPERATION…

The operating performance of NTPC Ltd. has been considerably above the national average. The

availability factor for coal stations has increased from 85.03% in 1997-1998 to 91.20% in 2004-2005,

which compares favorably with international standards. The PLF has increased from 75.25 in 1997-98 to

87.51 % during the year 2004-05 which is the highest since the inspection of NTPC Ltd. However, for

regions other than Eastern Region, which has power evacuation constraints due to low system demand, a

PLF of 87.51 was achieved during this year. Over last ten years, employee productivity has almost

doubled as measured by the ratio of turnover to number of employees.

NTPC AS ONE OF THE NAVARATANS

The Government of India has decided to accrue a special status to top profit making Indian Public Sector

Enterprises, calling them the NAVRATANS (literally, ‘nine jewels’, thought now they number eleven).

Recognizing its excellent performance and vast potential, Government of the India has identified NTPC

as one of the jewels of Public Sector ‘Navratans’- a potential global giant.

The company improved its ranking in Asia week’s survey of the top 1000 companies of the Asia- Pacific

Region including Japan. In terms of sales and profit NTPC’s ranking has improved from 344th to 299th and

40th to 31st

ISO 14001 CERTIFICATION

Ramagundam & Dadri power stations have been awarded with ISO 14001 certification for confirming to

international standards of environmental management system. Lloyds Register Quality Assurance

(LRQA) has awarded these certificate, a London based organization, which approves ISO certification

worldwide. PMI at Noida also received the ISO 9001 certification by M/S LRQA. Signals power station

is accredited with ISO 9002 certification.

WORLD BANK APPRAISAL

The World Bank has been periodically appraising the performance of NTPC. A few excerpts from the

World Bank’s Performance Audit/Staff Appraisal Report of 1993 are:

“NTPC has demonstrated that Government owned utilities can be operated at efficiency levels

comparable of those who owned utilities in India and well run utilities outside of India. On financial side,

NTPC has been successful in increasing substantially and in diversifying resource mobilization for future

project financing”.

IMPORTANT HIGHLIGHTS OF 2005-2006

National Thermal Power Corporation has been the power behind India’s sustainable power development

since November 1975.

Contributing 26% of the country’s entire power generation, NTPC today lights up every 4th bulb in the

country.

With ambitious growth plans to become a 56000 MW, Power Company by 2017, NTPC the largest power

utility of India has already diversified into hydro sector.

Further initiatives for greater organizational transformation have been approved under PROJECT DISHA.

The company added 2000 MW during this years With a commendable performance in the areas of

operation and maintenance, NTPC once again surpassed all Memorandum Of Understanding targets for

the year 2002-2003 in the Excellent Category. NTPC stations recorded the highest ever PLF of 83.6%

since the inspection of the corporation. Some highlights of excellence are:

Turnover of Rs. 19984.58 crore.

With 19% of the country’s installed capacity, NTPC contributed 26% of electricity

Generated 140.85 billion units (BUs)’ an increase of 4.765 over previous years generation of 133.19 BUs.

This is besides the generation of the NTPC SAIL JV Companies.

Return On Capital Employed (ROCE) and Return On Net Worth (RONW) 10.88% and 12.13%

respectively.

1000MW capacity added during 2002-03. The fourth 500 MW units at Talcher- Kaniha have also been

synchronized in October 2003.

Capacity addition of over 9370 MW planned for 10th plan. Projects totaling 5300 MW capacity under

various stages of construction.

OTHER AWARDS & ACCOLADES WON

Shell Helen Keller Award 2002 for promoting employment opportunities to disabled people.

Platts Global energy Award 2002 for commitment to community development.

CORE-BCSD Corporate Social Responsibility Award 2001-02 instituted by TERI.

ICC-UNEP World Summit Business Award for Sustainable Development Partnership.

National Safety Award 2002 instituted by the British Safety Council, to seven NTPC stations.

Best HR Practices Award 2002 instituted by Indian Society of Training & Development.

World HRD Congress Award instituted by World HRD Congress.

Golden Peacock National Training Award 2003 instituted by Institute of directors to PMI.

Meritorious Productivity Award of the Government of India to 12 stations.

Prime Ministers Shram award for the 17th year including two SHRAM RATNA.

Vishvakarma Award by Ministry of Labor, Government of India.

Climate Technology Initiative award.

MoU Excellence Award of Government of India.

CII Award for Excellence in Infrastructure.

Greentech Environment Excellence Award.

Best Employer National Award for the welfare of physically challenged people.

Business Today Hewitt Best Employers Award.

AWARDS

Achivement AWARDS

green tech awards

Greentech Life time AAchievement Award

MoU Award for Excellence in Performance

GROWTH PLANS…

Over the last three decades, NTPC has spearheaded development of thermal power generation in the

Indian power sector. In this process, it has built a strong portfolio of coal and gas/liquid fuel based

generation capacities. The company has made initial forays in the area of hydropower development and

plans to have a significant share of hydropower in its future generation portfolio. Although NTPC is also

offering technical services, both in domestic and international markets, through its Consultancy Wing, the

generation business would continue to be the single largest revenue generator for NTPC.

The Indian power sector is witnessing several changes in the business and regulatory environment. The

legal and policy framework has changed substantially with the enactment of the Electricity Act 2003. In

the foreseeable future, India faces formidable challenges in meeting its energy needs. Recently, a draft

integrated energy policy has been issued, which addresses all aspects including energy security, access,

availability, affordability, pricing, efficiency and environment. To meet the twin objectives of ensuring

availability of electricity to consumers at competitive rates, as well as attract large private investments in

the sector, a new Tariff policy has also been issued. The power sector thus offers a mixed bag of

challenges and opportunities to players and NTPC would continue to review its business strategy and

portfolio in light of these changes.

GROWTH RATE

2009-02-29 01:18:25

Growth in electricity generation has decelerated to 6.6 per cent from 7.5 per cent in the corresponding

period in 2008-09, the Economic Survey tabled in the Parliament by finance minister P. Chidambaram

said.

The government is expecting 9.5 per cent growth per annum in the power sector

in the 11th Five Year Plan

ORGANIZATION STURCTURE OF NTPC

SWOT ANALYSIS

STRENGTH

1. Government Aid and naveraten company world’s largest coal base

2. Way ahead of its competitors Best Brand Name in the Industry

WEAKNESSES

1. Not have the big collection of fuel2. Recovery of fund in long time

OPPORTUNITIES

1.It have GAS INDUSTRY which is having significant growth in the Near future 2.India require electricity in future

THREATS

1. Huge Investments require fuel 2. . AVAILABILITY OF fuel is very difficult 3. Increasing more number of apartments at high costs

Power Supply Units India:

Power is derived from various sources in India. These include thermal power,hydropower or

hydroelectricity, solar power, biogas energy, wind power etc. the

distribution of the power generated is undertaken by Rural Electrification

Corporation for electricity power supply to the rural areas, North Eastern Electric

Power Corporation for electricity supply to the North East India regions and the

Power Grid Corporation of India Limited for an all India supply of electrical power in India.

Thermal Power in India is mainly generated through coal, gas and oil.

India coal power forms a majority share of the source of power supply in India. The electric power in

India is generated at various thermal power stations in India. The power generated at these thermal power

plants is then distributed all over India through a network of power grid at regional and national levels.

The power ministry organization responsible for the thermal power management in India is the NTPC.

Hydropower in India is one of the mega power generators in India.

Various hydropower projects and hydro power plants have been set up by the ministry of power for

generation of hydro power in India. Various dams and reservoirs are constructed on major rivers and the

kinetic energy of the flowing water is utilized to generate hydroelectricity. The power generator here is

the running water. The hydroelectric power plants and the hydro power generation companies are

managed by the National Hydro Electric Power Corporation (NHPC).

Wind Power in India is available in plenty as India witnesses high

intensity winds in various regions due to the topographical diversity in

India. Efforts have been made to utilize this natural source of energy available free of cost for wind

power generation. Huge wind energy farms have been set up by the government for tapping the wind

energy by using gigantic windmills and them

Converting the kinetic energy of the wind into electricity by the use of power converters. The wind power

advantages start with the very fact that a wind energy power plant does not require much infrastructure

input and the raw material i.e. wind itself is available free of cost.

Solar Power in India is being utilized to generate electricity on smaller

scale by setting up massive solar panels and capturing the solar power.

Solar power India is also being utilized by the power companies in India to generate solar energy for

domestic and small industrial uses.

Nuclear Power in India is generated at huge nuclear power plants and

nuclear power stations in India. A nuclear power plant generates the electricity using

nuclear energy. All the nuclear power plants in India are managed by the Nuclear Power Corp of India

Ltd (NPCL). The electricity from all India nuclear plants is distributed by the NPCL as per the nuclear

power project scheme.

HUMAN RESOURCES FUNCTION IN NTPC

Presently Director HR followed by Executive heads the HR function at NTPC Director HR who is

assisted General Manager HRD who are than assisted by the team of General Manager, Assistant General

Manager, Senior Manager, Manager, Senior Personal Officer and other Executives.

The current focus of the HR department is essentially on looking after the company’s policies, day-to-day

personal and administrative matters like pay, salary administration, leave, and reimbursement of

expenses. The internal recruitment is still done. They have full involvement with performance appraisal

of employees and training and ongoing development. The government sets the salary structure; TA/DA

and other benefits are well taken care of by the personnel and administration department.

Each region of NTPC (Northern, Southern, Eastern, Western) has different HR divisions generally headed

by GM or AGM’s. Director (NR) has a medical wing with him nationwide. Every project site has medical

hospitals & dispensaries headed by Deputy General Manager.NTPC has set up a Resettlement &

Rehabilitation (R&R) center, which is monitored by government of India and headed by director (HR).

Corporate social responsibility (CSR) s the new wing started by NTPC, which is headed by AGM

&DGM, they directly report to director HR. This group work for social welfare and awareness i.e.

employment of physical challenged people, community development as further an amount of Rs 72

million was allocated to Uttranchal government for street lightning and medical equipment for a forest

hospital.

HUMAN RESOURCES

Director (HR)

EXECUTIVE LEVELS

Level wise sanction of executive manpower has been structured on the basis of objective, which is

approved by chief managing director that is as follows:

E1-Assistant officer

E2- Senior officer

E3- Executive Trainee equivalent to officer

E3- Senior officer

E4- Department manager

E5- Manager

E6- Senior Manager

E7- DGM

E7A- AGM

E8- GM

E9- Executive Director

The above post has been sanctioned by the consultation with the concerned functional director.

Executive DirectorPower Management

Institute

HR Policy Division

Employee Relation

Welfare

Employee Benefit

IndustrialEngineering &

Transfers Group

HR Recruitment

Promotion & Appraisals

Noida Services

Industrial

Establishment

Industry players and profile

The power sector reveals that it can be largely segregated into four different

categories on the basis of type of players in the industry. These include:

Central Government Corporations: which consist of corporations like

the National Thermal Power Corporation (NTPC), Nuclear Power Corporation, National Hydro Electric

Power Corporation (NHPC), and some other smaller players.

State Government Corporations. Which consist of the various state

electricity boards and other corporations that have been promoted by the respective governments. Poor

management, transmission and distribution (T&D) losses and poor recoveries of dues are some of the

factors, which are responsible for the plight of these corporations. Currently, the financial health of many

SEBs is precarious and their revenue-raising capabilities are more or less dependent on assured

guarantees from the respective governments.

Private Sector Licensees: In the private sector, some companies had been given licenses to carry on

generation and distribution activities. While some of these companies are generation and distribution

companies, others like Surat Electricity are just distribution companies.

Independent Power Producers: The Independent Power Producers (IPPs) are the companies that have

been given a nod to set up generation

capacities.

Finally, a look at the regulatory structure of the sector indicates that various Acts govern the power sector.

Overview of ntpc NTPC was set up in the central sector in the 1975 in response to widening demand &

supply gap with the main objective of planning, promoting & organizing an integrated development to

thermal power in India. Ever since its inception, NTPC has never looked back a

The only PSU to have achieved excellent rating in respect of MOU targets signed with Govt. of India

each year. NTPC is poised to become a 40,000 MW gint corporation by the end of XI plan i.e. 2012 AD.

Lighting up one fourth of the nation, NTPC has an installed capacity of 19,291 MW from its commitment

to provide quality power; all the operating stations of NTPC located in the National Capital Region &

western have acquired ISO 9002 certification. The service groups like Engineering, Contracts, materials

and operation Services have also bagged the ISO 9001 certification. NTPC Dadri, Ramagundam,

Vindhyachal and Korba station have also bagged ISO 14001 certification.

Today NTPC contributes more than 3 / 5th of the total power

generation in India.

A Brief Introduction to NTPC

The largest power generation company in India under Central Government

Current installed capacity –29,144 MW

18 coal based and 8 gas based power plants

Setting up hydro power plants, developing coal mines for captive use, and exploring oil / gas blocks in

consortium with partners

Subsidiary & JV companies for taking up power generation, trading, and distribution business and for

setting up of small hydro plants

Setting up coal based power plant in Srilanka

Implementation of Supercritical Technolgy NTPC

In 1999 NTPC appointed an International consultant “EPDC, Japan” to study for adoption of super

critical technology in NTPC

EPDC evaluated supercritical technology from technical, economical and environmental point of view for

Indian perspective.

EPDC recommended supercritical technology for India and suggested following parameter.

Main steam pressure 246 kg/cm2, Temperature-538/566 deg C

NTPC implemented supercritical technology for two plants i.e Sipat-I (3X660MW) and Barh-I

(3X660MW) with above parameter.

Supercritical Technology Analysis

Technology -Mature and established

Availability -Same as sub-critical

Project Implementation-Essentially same as sub-critical

O&M -By & large same as sub-critical

Reduced Environmental Impact

Most preferred parameters-246 Kg/cm2-538oC/566oC

Materials proven and already in use

Indigenous Supplier of Supercritical Technology are under developing stage.

SUPERCRITICAL VS SUBCRITICALMAJOR DESIGN

DIFFERENCE

Boiler-Once Through instead of drum type and use of superior material in certain pressure parts

Piping-Reduced diameter. Superior Material.

Turbine-Increase in thickness of various parts to suit higher parameters

Feed Heaters-Increased thickness of tubes, water boxes and tube plate

BFP-Increased motor rating. Higher thickness of certain parts

Boiler Control-Change in philosophy

Water Chemistry-No blow down. 100% flow CPU. Different chemistry control.

No new superior material is used. Only the quantity of superior material increases.

UNDER CONSTRUCTION CAPACITY ADDITION SCHEDULE

Under Construction Capacity Addition Schedule

NTPC LTD COAL INDIA LTD

along NTPC to take up the construction of Kawas, Auraiya, Anta, Dadri and Gandhar Gas Power Project

the HBJ Gas pipe line.

The power plant consists of gas turbine generating units waste heat recovery boilers, steam turbo

generator, ancillary electrical and mechanical equipments. The power generated at this power station is

fed over 220 KV AC transmission system associated with this project to distribute the power in the

various Regions.

In the Power Sector, gas turbine drive generators are used.

Gas turbines range in size from less than 100 KW up to about 140.000 KW. The gas turbine has found

increasing application due to the following potential advantages over competive

equipment.

• Small size and weight per horsepower

• Rapid loading capability

• Self-contained packaged unit

• Moderate first cost

• No cooling water required

• Easy maintenance

• High reliability

• Waste heat available for combined cycle

Aplicapation.

• Low Gestation Period

• Low Pollution Hazards

The function of a gas turbine in a combined cycle power plant is to drive a generator which produce

electricity and to provide input heat for the steam cycle. Power for driving the compressor is also derived

from gas turbine.

ABOUT THE TOPIC

Introduction to Performance Appraisal

Once the employee has been selected, trained and motivated, he is then appraised for his performance.

Performance Appraisal is the step where the Management finds out how effective it has been at hiring and

placing employees. If any problems are identified, steps are taken to communicate with the employee and

remedy them.

Performance Appraisal is a process of evaluating an employees

performance in terms of its requirements.

Performance Appraisal can also be defined as the process of evaluating the

performance and qualifications of the employees in terms of the requirements of the job for which he is

employed, for purposes of administration including placement,

selection for promotions, providing financial rewards and other actions which

require differential treatment among the members of a group as distinguished from actions affecting all

members equally.

Importance and Purpose

Performance Appraisal has been considered as the most significant an indispensable tool for an

organization, for an organization, for the information it provides is highly useful in making decisions

regarding various personnel aspects such as promotion and merit increases. Performance measures also

link information gathering and decision making processes which provide a basis for judging the

effectiveness of personnel sub-divisions

such as recruiting, selection, training and compensation. Accurate information plays a vital role in the

organization as a whole. They help in finding out the weaknesses in the primary areas.

Formal Performance Appraisal plans are designed to meet three needs, one of the organization and the

other two of the individual namely:

o They provide systematic judgments to back up salary increases, transfers,

demotions or terminations.

o They are the means of telling a subordinate how he is doing and

suggesting needed changes in his behavior, attitudes, skills or job

knowledge. They let him know where he stands with the Boss.

o Superior uses them as a base for coaching and counseling the individual.

On the basis of merit rating or appraisal procedures, the main objectives of

Employee Appraisal are:

o To enable an organization to maintain an inventory of the number

and quality of all managers and to identify and meet their training

needs and aspirations.

o To determine increment rewards and to provide reliable index for

promotions and transfers to positions of greater responsibility.

o To suggest ways of improving the employee s performance when

he is not found to be up to the mark during the review period.

o To identify training and development needs and to evaluate

effectiveness of training and development programmes.

o To plan career development, human resource planning based

potentials. o To identify training and development needs and to evaluate

effectiveness of training and development programmes.

o To plan career development, human resource planning based

potention

INTRODUCTION CONCEPTUAL FRAMEWORK

Human Resource are today universally acknowledged as the most valuable assets in any organization, and

it is largely due to this that enlightened management are increasingly searching and researching for newer

and better techniques of personnel management and administration.

Performance Appraisal has acquired a new dimension as a result of the HRD movement. Despites the

increasing research done by behavioral scientists, man still remains a very complex person, capable at the

same time, however, of extremely high performance levels given the proper environment and motivation.

Rao defines HRD as a process that continuously helps the employees in a planned way to acquire and

sharpen capabilities needed for present and future work, to help them discover their potential and to

develop an organization culture where collaboration and teamwork are valued. Performance Appraisal

plays a key role in achieving the objectives of HRD. It can be used for performance planning and culture

building. Appraisal can help in identifying development areas and growth potential. It can also be used

for performance reviews and counseling. Effective appraisals should help in identifying strength and

weakness of employees so that subsequent training and development activities can be used to reinforce

strengths and overcome the weaknesses of the employees. Hence the appraisal is not merely a tool to

judge the performance of the employees in the previous year, but also an opportunity to tap their potential

and discover mechanisms to bring that potential the surface.

In simple terms, Performance Appraisal may be understood as the assessment of an

individual’s performance in a systematic way, the performance being measured against

such factors as job knowledge, quality and quantity of output, initiative, leadership abilities, supervision,

dependability, co-operation, judgment, versatility, health, and the like. Assessment should not be confined

to past performance alone. Potentials of the employee for future performance must also be assessed.

A formal definition of performance appraisal is: It is a systematic evaluation of the

individual with respect to his or her performance on the job and his or her potential for development. A

more comprehensive definition is: Performance Appraisal is a formal, structured system of measuring and

evaluating an employee’s job related behaviors and outcomes to discover how and why the employee is

presently performing on the job and how the employee can perform more effectively in the future so that

the employee, organization, and society all benefit.

Formal appraisal of an individual’s performance began in the Wei dynasty (A.D. 221- 265) in China,

where an Imperial Rater appraised the performance of members of the official family. A formal appraisal

program has been perceived to be equally important in Indian business and industry, and a number of

firms conduct it in one form or the other.

In industry, performance appraisal is a systematic evaluation of personnel by superiors or others familiar

with their performance because employers are interested in knowing about employee performance.

Employees also wish to know their position in the organization. Appraisals are essential for making many

administrative decissions: selection, training, promotion, transfer, wage and salary administration etc.

Performance Appraisal thus is a systematic and objective way of judging the relative worth or ability of

an employee in performing his tasks well and those who are not and the reason for such performance.

In public enterprises, however, personnel management in the early years tends to follow the government

procedures, but for the last two decades or so we see managements becoming increasingly aware of the

necessity to professionalize personnel administration. The diversity of procedures and techniques for

performance appraisal, ranging from much too prosaic too much too elaborate prevailing in the business

and industrial establishments is positive staggering.

Evaluation of employees is one of the most universal practices of management. It is applied formally or

informally to all employee-operatives, technical, professional and executive. Many companies use formal

plans primarily in connection with operative employees. The success of formal plans of evaluation

depends upon the case with which they are planned, operated and controlled.

Objectives of Performance Appraisal

Data relating to performance assessment of employees are recorded, stored, and used for several

purposes. The main purposes of employee assessment are:

1. To effect promotions based on competence and performance.

2. To confirm the services of probationary employees upon completing the

probationary period satisfactorily.

3. To assess the training and development needs of employees.

4. To decide upon a pay raise where (as in the unorganized sector) regular pay

scales have not been fixed.

5. To let the employees know where they stand insofar as their performance is concerned and to assist

them with constructive criticism and guidance for the purpose of their development.

6. To improve communication. Performance Appraisal provides a format for dialogue between the

superior and the subordinate, and improves understanding of personal goals and concerns. This can also

have the effect of increasing the trust between the rater and the ratee.

7. Finally, performance appraisal can be used to determine whether HR programmes such as selection,

training, and transfers have been effective or not.

Broadly, performance appraisal serves four objectives –

(i). Developmental uses- Identification of individual needs.

1- Performance feedback.

2- Determining transfers and job assignments.

3- Identification of individual’s strengths and developmental needs

(ii). Administrative uses/Decisions- Salary PromotionRetention or Termination -Recognition of

individual’s performance Lay-offs

Identification of poor performers

(iii) Organizational Maintenance/objectives- HR planning

1-Determining organization training needs

2- Evaluation of organizational goal achievement

3- Information for goal identification

4-Evaluation for HR system

5- Reinforcement of organizational development needs.

(iv) Documentation- Criteria for validation research

1- Documentation for HR decisions

2- Helping to meet legal requirements

Performance Appraisal and Competitive Advantage

The objective of performance appraisal, listed above, points out the purposes that such an exercise seeks

to meet. What needs emphasis is that performance evaluation contributes to firm’s competitive strength.

Besides encouraging high level of performance, the evaluation system helps identify employees with

potential, reward performance equitably and determine employee’s need for training.

Specifically, performance appraisal helps an organization gain competitive edge in the following way

\

Improving Performance–

Improving Performance Competitive Advantage

Minimizing Dissatisfaction and Turnover Strategy and Behaviour Values and Behaviour Making Correct

Decisions, Ensuring Legal Compliance

An effective appraisal system can contribute to competitive advantage by improving employee job

performance in two ways- by directing employee behavior towards organizational goal and by monitoring

that behavior to ensure that the goals are met.

Making Correct Decisions–

Appraisal is a critical input in making correct decisions on such issues as pay raise, promotion, transfer,

training, discharges and completion of probationary periods. Right decisions on each of these can

contribute to competitive strength of an organization. If promotion is made on performance, the promote

feels motivated to enhance his or her performance.

Ensuring Legal Compliance-

Promotion made on factors other than performance might land up a firm in a legal battle, thus diverting its

focus on non-productive areas. Organizations can minimize costly performance –related litigation by

using appraisal systems that give fair and accurate ratings.

Minimizing Job Dissatisfaction and Turnover –

Employees tend to become emotional and frustrated if they perceived that the ratings they get are unfair

and inaccurate. Such employees find that the efforts they had put in became futile and obviously get

demotivated.

Dissatisfaction in the job sets in and one of the outcomes of job dissatisfaction is increased turnover. Fair

and accurate appraisal results in high motivation and increased job satisfaction. An organization having

satisfied and motivated employees will have an edge over its competitors.

Consistency Between Organizational Strategy and Behavior – An organization needs a strategy consistent

with the behavior of its employees if it were to realize its goals. A truism of organizational life is that

people engage themselves in behaviors that they perceive will be rewarded. As employees want to be

rewarded, they tend to occupy themselves more with those activities on which the organization

emphasizes. The performance appraisal becomes not only a means of knowing if the employees behavior

is consistent with the overall strategic focus, but also a way of bringing to the fore any negative

consequence of the strategy-behavior fit. Thus, the performance appraisal is an important organizational

mechanism to elicit feedback on the strategy- behavior link. Organizational Strategy and Performance

Appraisal- The performance appraisal system serves many organizational objectives and goals.

Besides encouraging high level of performance, the evaluation system is useful in identifying employees

with potential, rewarding performance equitably, and determining the employees need for development.

These are all the activities that should support the organizations strategic orientation.

APPRAISAL PROCESS

Each step in the process is crucial and is arranged logically. The process as shown in figure is some what

idealized. Many organizations make every effort to approximate the ideal process, resulting in first-rate

appraisal systems. Unfortunately, many other fails to consider one or more of the steps and, therefore,

have less effective appraisal system.

The Performance Appraisal Process

1. Objectives of Appraisal – Objectives of appraisal includes effective

promotions and transfers, assessing training needs, awarding pay increases, and the like. The emphasis in

all these is to correct the problems. These objectives are appropriate as long as the approach in appraisal

is individual. Appraisal, in future, would assume system orientation. In the system approach, the objective

of appraisal stretch beyond the traditional ones.

In the system approach, appraisal aims at improving the performance, instead of merely assessing it.

Towards this end, appraisal system seeks to evaluate opportunity factors. Opportunity factors include the

physical environment such as noise, ventilation and lightings, available resources such as human and

computer assistance; and social

Establish Job Expectations

Design an Appraisal Program

Appraise Performance

Performance Interview

Use Appraisal Data For Appropriate Purpose

processes such as leadership effectiveness. These opportunity variables are more important than

individual abilities in determining work performance.

In the system approach, the emphasis is not on individual assessment and rewards or punishments. But it

is on how the work system affects an individual’s performance. In order to use a systems approach,

managers must learn to appreciate the impact that the system level factors have on individual

performance, and subordinates must adjust to the lack of competition among individuals. Thus, if a

systems approach is going to be successful, the employee must believe that by working towards shared

goals, everyone will benefit.

2. Establish Job Expectations – The second step in the appraisal process is to establish job expectations.

This includes forming the employees what is expected of him or her on the job. Normally, a discussion is

held with his or her superior to review the major duties contained in the job description. Individuals

should not be expected to begin the job until they understand what is expected from them.

3. Design Appraisal Programme – Designing an appraisal programme

poses several questiones, which need answers. They are, (i) Formal versus informal appraisal; (ii) Whose

performance is to be assessed? (iii) Who are the raters? (iv) What problem are encountered? (v) How to

solve the problems? (vi)What should be evaluated? (vii) When to evaluate? (viii) What methods of

appraisal are to be used?

4. Appraisal the performance – The next step in the appraisal is to measure the performance. We revert

to the moral of the story narrated in the beginning of this chapter. The moral taught us that we need to

measure the performance and not mere activities.

What then is performance? Performance is essentially what an employee does or does not do. Employee

performance common to most jobs include the following elements:

• Quantity of output

• Quality of output

• Timeliness of output

• Presence at work

• Cooperativeness.

In addition to these, other elements that deserve assessment, as told in the beginning of this chapter, are

job knowledge, leadership abilities, judgment; supervision, versatility and health assessment should also

include one’s potential to performance and not just actual performance.

Performance measurement needs to be based on the benchmarks listed above. These benchmarks vary

from job to job. The job of a professor needs to be assessed against parameters that are different to those

used to evaluate the performance of a sales representative.

5. Performance Interview -Performance interview is another step in the appraisal process. Once

appraisal has been made of employees, the raters should discuss and review the performance with the

ratees, so that they will receive feedback about where they stand in the eyes of superiors. Feedback is

necessary to effect improvement in performance, especially when it is inadequate. Specifically,

performance interview has three goals: (i) to change behavior of employees whose performance does not

meet organizational requirements or their own personal goals, (ii) To maintain the behavior of employees

who perform in an acceptable manner, and (iii) To recognize performance behaviors so that they will be

continued.

Raters offer feedback to the ratees through several methods – tell and sell, tell and listen, problem solving

and mixed. In tell and sell, also called directive interview, the interviewer lets assesses know how well

they are doing and sell them on the merits of setting specific goals for improvement, if needed. They tell

and listen interview provides the subordinates with chances to participate and establish a dialogue with

their superiors. Its purpose is to communicates the rater’s perceptions about the ratee’s strength and

weaknesses and let the subordinates respond to those perceptions. In the problem-solving or participative

interview, an active and open dialogue is established between the superior and the subordinate. Not only

are perceptions shared, but also solutions to problems are presented, discussed, and sought. Mixed

interview is a combination of tell and sell and problem-solving interviews.

Whatever be the approach followed, the emphasis in the interview should be on counseling and

development and not on critism, witch-hunting and buck passing. Because of the significance of appraisal

interview, every effort must be made to make it effective. Guidelines given in the table will help make the

interview successful.

Guidelines for Effective Appraisal Interview

• Select a good time

• Minimize interruptions

• Welcome, set at ease

• Start with something positive

• Ask open-ended questions to encourage discussion

• Listen

• Manage eye contact and body language

• Be specific

• Rate behavior, not personality

• Layout development plan

• Encourage subordinate participations

• Complete form

• Set mutually agreeable goals for improvement

• End in a positive, encouraging note

• Set time for any follow-up meetings

6. Use of Appraisal Data

The final step in the evaluation process is the use of evaluation data. The data and information generated

through performance evaluation must be used by the HR department.

It may be recollected that the most significant rewards employers offer to employees are:

1. Money to purchase goods and services required not only for current and future

survival, but also for the luxuries modern life has to offer.

2. Te opportunity to use innate and learned skills and talents in a productive manner that the individual

and his or her managers and co-workers recognize as valuable.

3. Opportunities to interact with other people in a favorable working environment.

4. Opportunities to learn, grow, and make full use of their potential.

5. A sense of performance and stability through the continuing existence of the

organization and the job.

6. The opportunity to perform work assignments within an environment that not

only protects, but promotes physiological, emotional and psychological health.

In one way or another, data and information outputs of a performance-appraisal programme can critically

influence these coveted employer-employee reward opportunities. Specifically, the data and information

will be useful in the following areas of HRM:

1. Remuneration administration

2. Validation of selection programmes

3. Employee training and development programmes

4. Promotion, transfer and lay-off decisions

5. Grievance and discipline programmes

6. HR planning.

Problem of criterion

Differentiating between individuals is easy provided one knows what aspects to take into account. A very

broad definition of criterion is “that refers to the evaluative standards which measures a person’s

performance, attitudes, etc.” At the lower levels of an organization, there are specific jobs, and certain

tangible and objective standards of performance can be identified. Further up in the hierarchy, jobs

become more complex and clear-cut, tangible standards of performance are difficult to specify.

Irrespective of the level, by and large, most companies use eleven performance measures : quantity of

work, quality of work, waste and breakage, money earned, job knowledge, job tenure, absenteeism, rate

of advancement, self-judgment by supervisors. These measures can be classified into three broad

categories:

1. Personal Data

2. Production Data

3. Judgmental Data

Personal Data: This includes personal history, number of times one has been absent,

number of grievances, accidents, breakage, etc., all of which are often used to differentiate between good

and bad performers, they studied what personal variables made them “good” or “bad” performers.

However, there is little evidence to suggest that personal data can predict job performance. It is extremely

risky to use personal data as an indicator of performance. In fact, several studies suggest that the

relationship between personal data measures and production measures is often very often very low. Thus,

if these factors are used to define job success they should be considered relevant criteria in their own

right, rather than simple substitutes for more direct measures of job productivity.

Production Data: Rate and quality of work, and money earned, are direct measures of performance. These

can range from units produced per hour to money earned or lost. Production data are useful for evaluating

the performance of people only in some jobs and at some levels. Staff jobs vis-à-vis line jobs, higher level

jobs vis-à-vis lower level ones, and performance in service organizations vis-à-vis production or

engineering

organizations are difficult to evaluate, if production is the only thing to be considered.

Despites the fact that clear-cut output measures are available for some jobs; production data are not the

most frequently used measure of performance. They have been used less extensively that can be expected.

Initial studies on production as a measure of performance suggest that the time period between measures

can make a substantial difference to the accuracy of the data. To get correct pictures of production and

output, several samples over a number of time periods should be taken.

Judgmental Data: These include self-judgment, judgment by peers and superiors, and

sometimes knowledge of the job. It is one of the most commonly used indicators of performance, and

probably the one most loaded with errors and problems. Most of the problems arise because it is based on

subjective assessment either by the individual, or by another individual for him. It is almost impossible to

objectify subjective judgments. Merely giving two persons an answer to an essay test, and examining the

reason for their evaluation can gauge the difficulty of using this indicator.

Performance Appraisal Methods:

1. Confidential Report: This is the traditional way of appraising employee

performance. A confidential report by the immediate supervisor is still a major determinant of the

subordinate’s promotion or transfer. The supervisor writes about a paragraph on his subordinate’s

strengths, weaknesses, intelligence, attitude to work, attendance, conduct and character, work efficiency,

etc. The format and pattern of the report varies with each supervisor. Form-1 and Form-2 gives examples

of both unstructured and structured confidential report simply asks supervisors to estimate personal

qualities and capabilities-particularly reliability, judgment, adaptability, etc. The superior is free to

combine them in assessing the performance of the employee. The sample in form-2 gives 15 traits and

characteristics and is so structured that the supervisor can give his comments on each one of them

specifically and separately. The latter type of confidential report generates more data and information, in

well-defined categories, then does the former variety.

2. Rating Scales: Merit rating or appraisal of the performance is an important tool in the hands of

superiors to assess their subordinates. It is a systematic evaluation of an employee by some other qualified

person who is familiar with the employee’s performance. These methods assess the degree of certain

qualities required for the job such as industriousness, reliability and dependability. The degree is usually

measured on a scale, which can vary from 3 points (good, average, and poor) to several points. This

appraisal form defines not only traits and characteristics, but also scales positions. To some extent, it

overcomes the abstractness of numerical scales.

Common limitations of improperly designed merit rating system are:

- it is just a record of opinion

- there are zones of uncertainty

- rating seldom tells the whole story

- rating depends on raters ability and personal bias.

3. Ranking System: One of the disadvantages of the rating system is that it permits similar total scores

for two or more individuals. The ranking system obviates this problem. The rater simply ranks employees

in order of merit, which determines the employee’s ratings. Ranking can be determined either by looking

at the total individual and then ranking him in relation to others; or by first identifying several relevant

traits, ranking employees separately on each of these traits, and then cumulating these trait rankings to

arrive at the final employee ranking. The ranking system is simple, natural and useful when the number of

employee evaluated by the same superior is small.

Two disadvantages of the ranking system are:

1.It is difficult to rank employees apart from and between the top and

bottom extremes; finer judgment has to be exercised here, which increases

chance of errors.

2.The task of ranking individuals is difficult when there are over 20 or 25

cases.

2. Paired comparison method: It is much simpler; requiring the rater to judge

which of the two workers is superior, instead of having to arrange members of a large group of workers in

order of excellence. It makes the rater compare one employee systematically with the others individually.

The supervisor is provided with a bunch of slips each containing a pair of names. The rater puts a tick

mark against the individual whom he considers the better of the two. The maximum number of pairs is

indicated by the formula N(N-1)/2 , where N=total number of this method is that in a permutations and

combinations increases, requiring more time from the evaluator. One disadvantage of this method is the

number of permutations and combinations increases, requiring more time from the evaluator.

3. Forced Choice Method: The forced choice rating forms contains a series of groups of statements and

the rater checks how effectively the statements describes each individual being evaluated. The rater is

required to choose from several sets of adjectives or phrases, which best characterize the officer and

which are most descriptive. This is also sometimes called a check list statement. The forced choice

method attempts to make performance evaluation more objective.

4. Critical Incident Method: This involves three steps: A list of noteworthy (good or bad) on-the-job

behavior, usually of specific instances, is first prepared. A group of experts then assign scale values to

them. A group of experts then assign scale values to them, depending upon the degree of desirability for

the job. The third step is constructing a checklist that includes incidents that define “good” and “bad”

workers. Subsequently, superiors use these list for evaluating the worker. This method has to identify key

areas in which employees are weak or strong. It emphases rating on objective evidence rather on the

subjective evolution of trades. Finally, the supervisor finds counseling easier since he knows his

subordinates weakness.

5. Forced distribution method: In this the rater is forced to distribute his

subordinates into performance categories such as outstanding, good, poor, etc. the rater distribute his

subordinate his subordinates on scale locations which can be top 10 percent to bottom 10 percent, or any

variation of percentages with values in between. The most often used distribution is 10, 20, 40, 20, 10

percent, which equates with a normal distribution. This method is useful for rating a large no.of

employee.

Problems in Performance Appraisal:

None of the methods for appraising performance is absolutely valid or reliable. Those appraisal methods

involve judgments of one kind or the other. The error of “central tendency” and the error of leniency are

inherent in the process. The central tendency error refers to the tendency of not using extreme scale scores

on the judgment scales; most of the rates are clustered in the middle. Errors of leniency are caused by the

tendency of the lenient rates to put most of the ratees on the higher sides of the scale, while the tough

rater places them on the lower side of the scale.

Another problem is the “halo effect” or the tendency to allow the assessment on one trait to influence

assessment on others. This arises when traits are unfamiliar, ill defined, and involves personal reaction.

Another source of errors in performance evaluation is criterion contamination and bias because of variety

of circumstances and functions beyond the control of the rater and the ratee. These are critical biases, and

must be taken into account to make appraisals as objective as possible. Blum and nylon discuss the source

of bias:

1.Opportunity bias: This results when the amount of output is influenced by factors

beyond the control of employees. Some employees have better working conditions, supportive

supervisors, more experienced co-workers, and hence their output may be greater than those others

working on identical tasks.

2.Group characteristics bias: The characteristics of an individual’s group make a dent in his

performance. Cohesive group with high morale can produce more than less cohesive groups. Since the

individual’s performance is greatly determined by the group’s definition of a fair day’s work, this factor

must be kept in mind while evaluating the individual employee’s performance.

3.Knowledge of predictor bias: A rater’s knowledge of the performance of an employee on predictors

can influence his appraisal rating. An employee who topped in the selection list might leave the

impression that he is the best among the employees, and hence may railroad the rater to better evaluation

despite a moderate performance. The rater should never be permitted to have access to the employee’s

solutions data.

4.Bias in rating: The rater’s own biases and competence in rating can influence the

objective of performance appraisals. The halo effect, rater’s training, central tendency errors, etc are

examples of this “contamination”.

Although all appraisal methods are subject to validity and reliability tests there is very little evidence on

these two counts. Since most appraisal methods involve personal judgment, it is difficult to ascertain their

reliability and validity. Group appraisal methods and rating by multiple judges are some techniques,

which can make evaluations reliable and valid. However there success is highly debatable.

Are Performance Appraisals Still Beneficial And Appropriate?

It is sometimes fashionable in the ‘modern age’ to dismiss traditional processes such as performance

appraisals being irrelevant or unhelpful. Be very wary however if considering removing appraisals from

your own organizational practices. It is likely that the critics of the appraisal process are the people who

can’t conduct them very well. It’s a common human response to want to jettison something that one finds

difficult. Appraisals – in whatever form, and there are various – have been a mainstay of management for

decades, for good reasons. Think about everything that performance appraisals can achieve and contribute

to when they are properly managed.

1- Performance measurement- transparent, short, medium and long term

2-Clarifying, defining, redefining priorities and objectives

3-Motivation through agreeing helpful aims and targets

4-Motivation through agreeing helpful aims and targets

5-Training needs and learning desires – assessment and agreement

6-Identification of personal strengths and direction – including unused hidden

strengths

7-Career and succession planning – personal and organizational

8-Team roles clarification and team building

9-Organisational training needs assessment and analysis

10-Appraisee and manager mutual awareness, understanding and relationship

11-Resolving confusions and misunderstandings

12-Reinforcing and cascading organizational philosophies, values, aims, strategies, priorities, etc

13-Delegation, additional responsibilities, employee growth and development

14-Counseling and feedback

15-Manager development – all good manager should be able to conduct appraisals

well – it’s a fundamental process

The list goes on…

People have less and less face-to-face time together these days. Performance appraisals offer a way to

protect and manage these valuable face-to-face opportunities. My advice is to hold on to and nurture these

situations, and if you are under pressure to replace

performance appraisals with some sort of (apparently) more efficient and cost effective method, be very

sure that you can safely cover all the aspects of performance and attitudinal development that a well-run

performance appraisals system is naturally designed to achieve.

There are various ways of conducting performance appraisals, and ideas change overtime as to what are

the most effective appraisals methods and systems. Some people advocate traditional appraisals and

forms; other prefer 360 degree type appraisals.

In fact performance appraisals of all types are effective if they are conducted properly, and better still if

the appraisal process is clearly explained to, agreed by, the people involved.

Purpose of Performance Appraisal and How to make it easier

Performance appraisals are essential for the effective management and evaluation of staff. Appraisals help

develop individuals, improve organizational performance, and feed into business planning. Formal

performance appraisals are generally conducted annually for all staff in the organization. Staff members

are appraised by their line manager. Directors are appraised by the CEO, who is appraised by the

chairman or company owners, depending on the size and structure of the organization.

Annual performance appraisals enable management and monitoring of standards, agreeing expectations

and objectives and delegation of responsibilities and tasks. Staff performance appraisals also establish

individual training needs and unable organizational training needs analysis and planning. Performance

appraisals also typically feed into organizational annual pay and grading reviews, which commonly also

coincides with the business planning for the next trading year.

Performance appraisals generally review each individual’s performance against

objectives and standards for the trading year, agreed at the previous appraisal meeting.

Performance appraisals are also essential for career and succession planning for

individuals, crucial jobs, and for the organization as a whole.

Performance appraisals are also important for staff motivation, attitude and behavior development,

communicating and aligning individual and organizational aims, and fostering positive relationships

between management and staff.

Performance appraisals provide a formal, recorded, regular review of an individual’s performance, and a

plan for the future development.

Job performance appraisals- in whatever form they take- are therefore vital for managing the performance

of people and organizations.

Managers and appraisees commonly dislike appraisals and try to avoid them. To these people the

appraisal is daunting and time consuming. The process is seen as a difficult administrative chore and

emotionally challenging. The annual appraisal is maybe the only time since last year that the two people

have sat down together for a meaningful one to one discussion. No wonders then that appraisal are

stressful- which then defeats the whole purpose. There lies the main problem and the remedy.

Appraisals are much easier, and especially more relaxed, if the boss meets each of the team members

individually and regularly for one-to-one discussion throughout the year.

Meaningful regular discussion about work, career, aims, progress, development, hopes and dreams, life,

common interests, etc., whatever, makes appraisals so much easier because people then know and trust

each other which reduces all the stress and the uncertainty.

Put off discussions and of course they loom very large.

So don’t wait for the annual appraisal to sit down and talk.

The boss or the appraisee can investigate this.

If you are an employee with a shy boss, then take the lead.

If you are a boss who rarely sits down and talks with the people – or whose people are not used to talking

with their boss- then set about relaxing the atmosphere and improving relationships. Appraisals (and

work) all tend to be easier when people communucate well and know each other.

So sit down together and talk as often as you can, and then when the actual formal appraisals are due

everyone will find the whole process to be far more natural, quick, and easy – and a lot more productive

too.

Challenges of Performance Appraisal

With the increase significance of performance appraisal, confronting the system is mounting. One serious

challenge facing the performance appraisal system relates to assessment of self managed teams. Popularly

called empowered teams, these self- managed teams create special challenges for performance appraisal-

empowered teams performs without supervisors. Historically, if one recalls, it is the supervisor who

assesses the performance of his or her subordinates. Another challenges is that both, individual and team

performance, need to be measured. A suitable device needs to be enhancing productivity. Other

challenges are:

• Creates a culture of excellence that inspires every employee to improve and lend himself or herself to be

assessed

• Align organizational objectives to individual aspirations

• Clear growth paths for talented individuals

• Provide new challenges to rejuvenate careers that have reached the plateau stage

• Forge a partnership with people for managing their careers

• Empower employees to make decisions without the fear of failing

• Embed teamwork in all operational processes

• Debureaucratise the organization structure for ease for flow of information.

Appraisals, Social Responsibility and the Whole Person Development

There is increasingly a need for performance appraisals of staff and especially managers, directors and the

CEO’s, to include accountabilities relating to corporate responsibility, represented by various converging

corporate responsibility concept including: the ‘Triple Bottom Line’ (‘profit people planet’); corporate

social responsibility (CSR);

Sustainability; corporate integrity and ethics; Fair Trade, etc. The organization must decide the extent to

which this accountability is reflected in job responsibilities; which would then naturally feature

accordingly in performance appraisals. More about this aspect of responsibility is in the director’s job

descriptions section. Significantly also, while this appraisal outline is necessarily a formal structure this

does not mean that the development discussed with the appraisee must be formal and constrained. In fact

the opposite applies. Appraisals must address ‘whole person’ development – not just job skills or the

skills required for the next promotion. Appraisals must not discriminate against anyone on the grounds of

age, gender, sexual orientation, race, religion, disability, etc.

It is particularly important to avoid any comments, judgments, suggestions, questions or decisions that

might be perceived by the appraisee to be based on age. Age along with the other characteristics stated

above, is not a lawful basis for assessing and managing people, unless proper ‘objective justification’ can

be proven.

When designing or planning and conducting appraisals, seek to help the ‘whole-person’ to grow in

whatever direction they want, not just to identify obviously relevant work skills training. Increasingly, the

best employers recognize that growing the ‘whole person’ promotes positive attitudes, advancement,

motivation, and also develops lots of new skills that can be surprisingly relevant to working productively

and effectively in any sort of organization.

Developing the whole person is also an important aspect of modern corporate responsibility, and

separately, whole person development is a crucial advantage in the employment market, in which all

employers compete to attract the best recruits, and to retain the best staff.

Therefore in appraisals, be creative and imaginative in discussing, discovering and agreeing ‘whole

person’ development that people will respond to, beyond the usual job skill-set, and incorporate this sort

of development into the appraisal process.

What factors make Performance Appraisal legally defensible?

One reason companies use performance appraisals is to have some legally defensible

means of making employment and job decisions that will Discourage frivolous law suits in the first place,

or

(A) Ensure the company is likely to win a court decision if the law suits goes to court.

Performance appraisals can provide some protection provided they are done

properly. If they are not done properly, then they become weapons for the other

side in court cases, particularly in the areas of discrimination accusations and

EEOC complaints.

Keeping in mind that it is always the courts that decide, and they decide on the merits of a particular case,

and that this should not be construed as legal advice, what are the characteristics of performance appraisal

systems that are legally defensible?

• Employees are involved in establishing performance standards for their

position

• Standards used are relevant to the essential elements of the job, and are clearly documented in writing

• Employees are informed of, understand, and sign off on critical job

requirements and expectations before the appraisal

• The system should not be based on comparisons between employees

• The performance appraisal is done annually and documentation of

performance discussions is done properly

• Employees are allowed and encouraged to add their comments and responses any performance appraisal

documentation. Managers who do performance appraisals must be provided with training

• Employees are informed of any performance reviews, and given an opportunity to advance of the formal

performance reviews, and given an opportunity to rectify the problems.

Why Performance Appraisal fails is summarized as follows:

1. The supervisor plays the dual and conflicting role of both judge and helper.

2. Too many objectives often cause confusion.

3. The supervisor feels that subordinate appraisal is not personally rewarding.

4. A considerable time gap exists between two appraisal programs.

5. The skills required for daily administration and employee development are in

conflict.

6. Poor communication keeps employees unaware about what is expected from

them.

7. There is a difference of opinion between the expectations of a supervisor and a subordinate, reflecting

the latter’s performance.

Some other studies found:

1. Greater variation between raters than between ratees.

2. Feedback on appraisal is generally unpleasant for both supervisor and

subordinates.

3. Very few supervisors possess the tact and insight to tell employees constructively

how to improve their performance.

The observations imply that supervisors in appraising their subordinates, and that pay little attention is

paid by supervisors in appraising their subordinates, and that a gulf exists between decisions and their

actual execution.

Any appraisal program will involve time and money. The wise manager should plan a program with the

minimum cost to give the maximum benefit. The rationale for using any particular method should be

determined by the size, financial resources, and philosophy of the organization. Confidential report, peer

rating or self-appraisals, requires less time and resources compared to some other methods. Besides self-

appraisal generates self-growth. It is often said that supervisors avoid playing the role of judge.

They feel uneasy criticizing a subordinate’s performance and are anxious least their adverse appraisal

might hold up a promotion, salary increase or an unwanted transfer.

Appraisal Interview:

Evaluation whether positive or negative can be very useful if it is communicated to the employee. Many

organizations require their supervisors, managers, and other raters to have periodic discussions with

employees about their performance and particularly to communicate any negative evaluation so that the

employee gets a chance to “explain”.

Appraisal interview serves these broad purposes:

1. They provide feedback to the employee that helps him ensure appropriate

performance in future.

2. They help the organization to get some idea of its working. Often problems and issues raised by

employees, difficulties faced in the execution of their duties, and way and means to improve the

functioning, are brought to the surface.

3. The organization can ascertain the training needs of its employees, which is very important.

Given the socio economic conditions in India, employer has a social obligation to ensure continuity of

jobs for their employee. An appraisal interview gives an opportunity to the rater to access the abilities of

the employee and if necessary, suggest suitable remedial measures.

Management By Objectives:

Whatever may be the nature and strength of resistance to the performance appraisal, managements cannot

relinquish this practice. Without employee appraisal, salary increase, reassignments or promotions cannot

be administered rationally. Each of these areas has its specific problems and one of the solutions of

modern times has been offered by Peter Drunker’s concept of management by objectives (MBO).

MBO calls on the subordinate to set his short-term performance goals in consultation with his superior,

the subordinate appraises his own performance by evaluating it vis-à- vis the goals. Before establishing a

goal, the individual studies his job, assesses his

potentialities, and formulates some specific plans to reach the goals. The supervisor is not the evaluator,

but directs the goal setting process to ensure that it matches the objectives of the organization.

MBO differs significantly from the traditional approach, for it shifts the emphasis from “appraisal” to

“analysis”. The subordinate is no longer examined by his superior for his weaknesses, but examines

himself to ascertain his strength and potential. It assumed that the individual knows, or is capable of

learning, more than any one else about his own needs, strength and weaknesses.

Employees cannot bear criticism and discussion of their personality traits, mannerisms, etc. In MBO, the

accent is on performance – the actions related to the goals rather than to the individual’s personality. The

superior helps the subordinate reach his own goals by specifying the steps. One major problem that

companies face in implementing MBO is in defining objectives. In the same organization, the purpose of

the worker is different from that of management. Once this hurdle is overcome, implementing MBO

becomes easier.

PERFORMANCE APPRAISAL SYSTEM IN NTPC

Performance Planning and Appraisal System of NTPC

NTPC has its won performance Appraisal system “Participative Performance Appraisal System” this the

system where one’s performance is appraised through discussion with his or her superior where both take

active participation on deciding the actual performance by the degree of achieving prescribe objectives

and his/her key performance Area (KPAs).

The following objectives have been envisaged:

• To set clear Performance Goals for each employee.

• To ensure commitment to perform and

• To enable objective performance appraisal.

Activities Performance plans, which will form the basis for appraisal, will be prepared for each

appraisee in two parts

a) Main activities / objectives to be accomplished /accomplished during the year (KPAs-

Key Performance Areas, Key Result Areas, or Objectives).

b) Competencies required/possessed for accomplishing the objectives.

The activities are briefly described below:

Main activities, objectives to be accomplished during the year.

KPAs are the main functions or activities an employee is expected to perform during the

plan period in order to fulfill the company’s goals and objectives.

Individual (appraisee) will identify his/ her KPAs using the following steps:

• Listing the entire main activates in the job / role.

• Prioritizing the activities based on importance, time taken, dependence on the other value addition etc.

• Finalizing the main activities, KPAs in consultation with the superior (Appraiser).

• Dividing these KPAs further into KPAs for routine activities.

The appraisee in format given in appendix will make entries. There may be some activities, which are not

planned in the beginning of the year but are to be accomplished. These also should be included. Instead of

calling KPAs, these activities may be called “main activities”.

PERFORMANCE APPRAISAL:

Evaluation of performance, merit rating, or annual review... The idea of a merit rating is alluring. The

sound of the words captivates the imagination: pay for what you get; get what you pay for; motivate

people to do their best, for their own good. The effect is exactly the opposite of what the words promise.

The performance appraisal will be used as a tool to recognize and record the achievements, for rewards

and promotions and for the identification of training and development needs in NTPC

. The performance appraisal period will be April to March of the succeeding calendar year and the

increment will be released before April of the year concerned.

The appraisal forms should be sent to the respective heads of the department in February by the HR

Department for evaluation and recommendations. The completed forms will be received by the HR

department by First Week of March. The final consolidation of assessments will be put up to the Unit

Head for approval by the third week of March and the individual letters of Increments Promotions will be

issued on 1st April.

The form consists of the following parts

PART A: SELF-APPRAISAL – To be filled in by the appraisee

PART-B: PERFORMANCE APPRAISAL – To be filled in by the ReportingAuthority/Superior

PART C: PERFORMANCE COUNSELING – To be filled in by Reporting Authority and to be discussed

with the appraisee along with person in charge.

PART D: SUMMARY OF ASSESSMENT – To be filled in by Review

Committee/Authority.

PART E: POTENTIAL APPRAISAL – To be filled in by the HOD / Unit head in

consultation with the reporting Authority.

PART F:

DEVELOPMENT NEEDS -TO BE FIELD BY THE REVIEW AND EMPLOYEE I.E STRENGTHS,

AREA OF IMPROVEMENT, TRAINING AND DEVELOPMENT ,CAREER GROWTH

PERFORMANCE APPRAISAL FOR TRAINEES:

The trainees will be appraised at least on a six-monthly basis during their training period. On successful

completion of the training period the trainees will be placed on probation of 6 months.

Before the completion of the probation the candidates will be appraised for their job performance as well

as their grasp of Safety and Quality standards and procedures. For both the above processes the appraisal

form used is given as. The respective heads of the department and the HR department will do these

appraisals. Areas of strength of the trainees and the ability to understand the company’s objectives and

becoming a team player is given emphasis in deciding about the absorption of a trainee.

On successful completion of the probationary period the candidates will be confirmed in the respective

grades.

RESEARCH METHODOLGY

1. RESEARCH :Research is a common parlance refers to a search for knowledge. It is a scientific

and systematic search for pertinent information on a specific topic.

According to Clifford Woody – “research comprises defining and redefining problems, formulating

hypothesis or suggested solutions; collecting, organizing and evaluating data; making deductions and

reaching conclusions.”

Research methodology is the way to systematically solve the research problem. Research methodology

just does not deal with research methods but also consider the logic behind the methods. It may be

understood as a science of studding how research is done scientifically and systematically. In it, we study

the various steps that are generally adopted by the researcher in study of his research problem along with

logic behind them. It is necessary for researcher to know the research method, technique He must also

clearly understand the producer would apply to problem given to him. All this means that it is necessary

for the researcher to design methodology from problem to problem.

Research methodology is a way to solve systematically the research problem. In it the researcher studies

the various steps that are generally adopted by researcher in studying his research problem along with the

logic behind them.

2. REVIEW OF RELATED LITRATURE

Review of related literature means researcher should undertake extensive literature survey connected with

the problem for this purpose, the abstracting and indexing journals and published or unpublished

bibliographies are the first place to go to. Academic journals, conference proceeding, government reports

books etc. must be tapped depending on the nature of the problem. In this process, it should be

remembered that one source would lead to another. The earlier studies, if any, which are similar to the

study in hand, should be carefully studied. A good library will be a great help to the researcher at this

stage.

3. PURPOSE OF STUDY

To study the performance appraisal system of NTPC.

4. OBJECTIVES OF STUDY

• To study the appraisal system in NTPC

• To analyze performance appraisal system.

• To identify the effectiveness of the appraisal process.

• To identify activeness of participation.

• To analyze the system in developing competency.

During the research, researcher has considered following things according to her

convenience.

5. UNIVERSE

Sum total of all the units that confirms to some designated part of specification is called universe.

Researcher while conducting research work has selected Bharat Aluminium Company as universe.

6. SAMPLE

The sample is the representative unit of population. The researcher has taken the employees as sample for

this research. Since in this research the researcher has collected the sample according to her own

convenience. So the sample is convenient sample and the sample size of the research is 300.

7. Size of the Sample

This refers to number of items to be selected from the universe to constitute a sample.

The size of the sample should neither be excessively large, nor too small. It should be optimum. An

optimum sample size is one, which fulfills the requirement of efficiency, representativeness, reliability,

and flexibility.

8. SAMPLE UNIT

Sample unit is the part of the universe taken from the universe for testing hypothesis.

Researcher has taken the 100 SBU Heads, 100 Executives and 100 workers as sample unit.

9. SAMPLING METHOD

The researcher adopted convenient Sampling Method. In this method the sample units are chosen

primarily on the basis of convenience to the investigator. In this type of sampling, the researcher selects

items for the sample deliberately; his choice concerning the items remains supreme. In other words, under

this sampling the organizers of the inquiry purposively choose the particulars unit of the universe for

constituting a sample on the basis that the small mass that they so select out of a huge one will be typical

or representative of the whole.

10. SOURCE OF DATA

The task of data collection begins after a research problem has defined. Researcher should keep in mind

two types of data, primary data and secondary data. The primary data are those, which are collected

afresh and for the first time, and thus happen to be original in character. The secondary data, on the other

hand, are those which have already been collected by someone else and which have already been passed

through the statistical process.

Researcher while conducting the research work has used primary source of data.

11.DATA COLLECTION TOOLS

These are the tools used for collecting data.

Researcher has gathered the data by administering questionnaire.

12. QUESTIONNAIRE

The term questionnaire refers to a self-administered process whereby the respondent himself/herself reads

the questions and records his/her answers without assistance of an interviewer. Although the instrument is

essentially question asking and data gathering tool. A questionnaire is more structured and standardized.

The questionnaire consists of a number of questions printed or typed in a definite order on a form or a set

of forms. This method of data collection is quite popular in case of big enquiries.

13.STATISTICAL TECHNIQUE

Percentage Method & Technique of Central Tendency was used by the researcher in the analysis of the

data in his research.

Percentage refers to a special kind of ratio. Percentages are used in making comparisons between two or

more series of data. Percentages are used to describe relationships. Percentages can also be used to

compare the relative terms, the distribution of two or more series of data.

Measures of Central Tendency tell us the point about which items have a tendency to cluster. Such a

measure is considered as the most representative figure for the entire mass of data. Measure of Central

Tendency is also known as ‘Statistical Average’.

Summary of the Performance Analysis System

Setting performance standards, observing and providing feedback, and condution appraisals enables the Team Leader to achieve the best results through managingemployee performance.

To begin the process, the Team Leader and the employee collaborates on thedevelopment of performance standards. The Team Leader then develops a performanceplan that directs the employee's efforts toward achieving specific results, to supportorganizational growth as well as the employee's professional growth. Discussion of goalsand objectives throughout the year provides a framework to ensure that employeesachieve results through One on One and mutual feedback. At the end of the rating period,the Team Leader appraises the employee's performance against existing standards, andestablishes new goals together for the next rating period.

As the immediate supervisor, the Team Leader plays an important role; his closestinteraction with the employee occurs at this level.

There are four key elements in the appraisal system:

1. Set objectives - Decide what the Team Leader wants from the employees andagree these objectives with them.

2. Manage performance - Give employees the tools, resources and training theyneed to perform well.

Performance Standards

3. Carry out the appraisal - monitor and assess the employees' performance,discuss those assessments with them and agree on future objectives.

4. Provide rewards/remedies - Consider pay awards and/or promotion based on theappraisal and decide how to tackle poor performance.

How does the Team Leader decide what's acceptable and what's unacceptableperformance? The answer to this question is the first step in establishing writtenstandards.

Performance expectations are the basis for appraising employee performance. Writtenperformance standards let the Team Leader to compare the employee's performance withmutually understood expectations and minimize ambiguity in providing feedback.Having performance standards is not a new concept; standards exist whether or not theyare discussed or put in writing. When the Team Leader observes an employee'sperformance, he usually makes a judgment about whether that performance is acceptable.Standards identify a baseline for measuring performance. From performance standards,the Team Leader can provide specific feedback describing the gap between expected andactual performance.

Guiding PrinciplesEffective performance standards:

Serve as an objective basis for communicating about performance. Enables the employee to differentiate between acceptable and unacceptable results. Increase job satisfaction because employees know when tasks are performed well. Inform new employees of your expectations about job performance.

Performance StandardsHow does the Team Leader decide what's acceptable and what's unacceptableperformance? The answer to this question is the first step in establishing writtenstandards.Performance expectations are the basis for appraising employee performance. Writtenperformance standards let the Team Leader to compare the employee's performance withmutually understood expectations and minimize ambiguity in providing feedback.Having performance standards is not a new concept; standards exist whether or not theyare discussed or put in writing. When the Team Leader observes an employee'sperformance, he usually makes a judgment about whether that performance is acceptable.Standards identify a baseline for measuring performance. From performance standards,the Team Leader can provide specific feedback describing the gap between expected andactual performance.

Guiding Principles Effective performance standards: Serve as an objective basis for communicating about performance. Enables the employee to differentiate between acceptable and unacceptable results. Increase job satisfaction because employees know when tasks are performed well. Inform new employees of your expectations about job performance.

Key Responsibility Areas (KRA)The Team Leaders in association with the Project Manager write performance standardsfor each key area of responsibility on the employee's job description. The employeeactively participates in its development. Standards are usually established when anassignment is made, and they are reviewed if the employee's job description is updated.The discussions of standards include the criteria for achieving satisfactory performanceand the proof of performance (methods the Team Leader will use to gather informationabout work performance).

Characteristics of Performance StandardsStandards describe the conditions that must exist before the performance can be ratedsatisfactory. A performance standard should:

Be realistic, in other words, attainable by any qualified, competent, and fully trained person who has the authority and resources to achieve the desired result Describe the conditions that exist when performance meets expectations Be expressed in terms of quantity, quality, time, cost, effect, manner of performance, or method of doing Be measurable, with specified method(s) of gathering performance data and measuring performance against standards

Expressing StandardsThe terms for expressing performance standards are outlined below:

Quantity: Specifies how much work must be completed within a certain period of time.

Quality: Describes how well the work must be accomplished. Specifies accuracy, precision, appearance, or effectiveness.

Timeliness: Answers the questions, by when? , How soon? , Or within what period?

Effective Use of Resources: Used when performance can be assessed in terms of utilization of resources: money saved, waste reduced.

Effects of Effort: Addresses the ultimate effect to be obtained; expands statements of effectiveness by using phrases such as: so that, in order to, or as shown by.

Manner of Performance: Describes conditions in which an individual's personal behavior has an effect on performance, e.g., assists other employees in the work

unit in accomplishing assignments.

Method of Performing Assignments: Describes requirements; used when only the officially prescribed policy, procedure, or rule for accomplishing the work is

acceptable.

Performance Measurements

Since one of the characteristics of a performance standard is that it can be measured, theTeam Leader identifies how and where evidence about the employee's performance willbe gathered. Specifying the performance measurements when the responsibility isassigned will help the employee keep track of his progress, as well as helping the TeamLeader in the future performance discussions.There are many effective ways to monitor and verify performance, the most common ofwhich are:

Direct observation Specific work results (tangible evidence that can be reviewed without the employee being present) Reports and records, such as attendance, safety, inventory, financial records, etc. Commendations or constructive or critical comments received about the employee's work.

Observation and Feedback (One on One)

Once performance objectives and standards are established, the Team Leader observesthe employees' performance and provides feedback. The Team Leader has aresponsibility to recognize and reinforce strong performance by an employee, andidentify and encourage improvement where it is needed. The Team Leader providesinformal feedback almost every day.By observing and providing detailed feedback, the Team Leader plays a critical role inthe employee's continued success and motivation to meet performance expectations.

One On One SessionsOne on One is a method of strengthening communication between the Team Leader andthe employee. It helps to shape performance and increase the likelihood that theemployee's results will meet expectations. One on One sessions provide the Team Leaderand the employee the opportunity to discuss her progress toward meeting mutuallyestablished standards and goals. A One on One session focuses on one or two aspects ofperformance, rather than the total review that takes place in a performance evaluation.

Guiding PrinciplesEffective One on One can:

Strengthen communication between the Team Leader and the employee Help the employee attain performance objectives Increase employee motivation and commitment Maintain and increase the employee's self-esteem Provide support

Key Elements of One on One

To make One on One sessions effective, the Team Leader keeps the following keyelements of One on One in mind while conducting such a session:

Observe the employee's work and solicit feedback from others. When performance is successful, take the time to understand why. Advise the employee ahead of time on issues to be discussed. Discuss alternative solutions. Agree on action to be taken. Schedule follow-up meeting(s) to measure results. Recognize successes and improvements. Document key elements of One on One session.

Questions to Consider during One on One

To provide effective feedback the Team Leader must understand the elements ofperformance and analyze marginal performance. These questions are kept in mind:

How is the employee expected to perform? Does the employee understand these expectations? If not, why not? Does the employee know what successful results look like? How does the Team Leader know? Does the employee know the performance is marginal? How does the Team Leader know? Are there obstacles beyond the employee's control? Can the Team Leader remove them? Has the employee ever performed this task satisfactorily? Is the employee willing and able to learn? Does satisfactory performance result in excessive work being assigned? Does unsatisfactory performance result in positive consequences such as an undesirable task being reassigned?

During the One on One SessionWhen the Team Leader conducts a One on One session to provide positive feedback tothe employee, he keeps the following points in mind:

Describe the positive performance result or work habit using specific details. Ask the employee's opinion of the same product or behavior. Ask the employee to identify elements that contributed to success (adequate time or resources, support from management or other employees, the employee's talent and interest in the project). Discuss ways in which the Team Leader and the employee can support continued positive results. Reinforce for the employee the value of the work and how it fits in with the goals of the work unit or department. Show your appreciation of the positive results and your confidence that the employee will continue to perform satisfactorily. If appropriate, document your discussion for the employee's file. When the Team Leader conducts a One on One session to improve performance, he uses the following format: Describe the issue or problem, referring to specific behaviors. Involve the employee in the problem-solving process. Discuss causes of the problem. Identify and write down possible solutions. Decide on specific actions to be taken by each of the Team Leader. Agree on a follow-up date. Document key elements of the session.

Follow-Up DiscussionDuring a follow-up discussion, the following steps are followed:

Review the previous discussion(s). Discuss insufficient improvement and ask for reasons why. Indicate consequence of continued lack of improvement. Agree on action to be taken and set a follow-up date, if appropriate. Convey confidence in the employee.

Document the discussion.

DATA ANALYSIS AND INTERPRETATIONS

Que.1 Are you aware of the performance appraisal system prevailing in ntpc?

Yes - 89%

NO - 8%

Confused - 3%

Yes

No

Confused

Awareness of Appraisal system

Interpretation:- (It has been concluded that at around 89% approx employees are aware

of the appraisal system in their organization and 3% among them are little confused about

the process and 8% of employees does not know about the process.)

Que.2 Does the appraisal system forms a two way participative process?

I) Agree - 91%

II) Partially Agree - 7%

III)Disagree - 2%

agree

partially agree

disagree

Interpretation(91% of the employees believe that the appraisal system is a two way

participative process and a ranking method but rest 7% partially agrees to it and 2%

totally disagrees.

Que.3 Are you satisfied with the current appraisal system?

Satisfaction level of employees

Yes - 73%

No - 9%

To some extend - 18%

yes

no

to some extend

Interpretation:(( During the research it was concluded that satisfaction level of appraisal

system was considerable and 73% of the employees were satisfied but yet few employees were not

satisfied.)

Que.4 Is the appraisal system fair enough to judge a persons skills ?

Performance Appraisal System

To some extent - 17%

To large extent - 58%

To very large extent - 21%

Not at all - 4%

To some extent

To large extent

to very Large extent

Not at all

Interpretation: (In NTPC, ranking system is fair enough to judge a persons capability, but some of the

employees still thinks that some more transparency should be made in process.)

Que.5 What is the purpose or benefit of Appraisal Process?

Performance Appraisal System .

Identification of training needs. - 13%

Increase in pay scale - 52%

Promotion - 29%

Transfer - 4%

Termination - 2%

Identification of trainingneeds

Inccrease in pay scale

promotion

Transfer

Termination

Interpretation: ( Appraisal system assists an individual to have an increase in pay scale and also to

identify the training needs if any.

Que6. How many times performance appraisal does take place?

Appraisal Process

Once a year - 18%

Twice a year - 77%

Thrice a year - 3%

Not known - 2%

Once a year

Twice a year

Thrice a year

Not known

Interpretation: ( In NTPC appraisal process takes place after every 6 months for

executives and it happens early for officers.)

Que.7 Does performance appraisal assisted you in your personal growth?

Personal Growth through appraisal

To some extent - 29%

To large extent - 52%

To very large extent - 13%

Not at all - 6%

To some extent

To large extent

To very large exyent

Not at all

Interpretation: ( Employees believe that appraisal helps them to have their personal

growth but still some more should be changed.)

Que.8 Does performance appraisal helps to develop competency in your organization?

Personal Growth through PA

Yes - 62%

No - 8%

To some extent - 30%

Yes 62%

No

To some extent 30%

Interpretation: ( In NTPC appraisal helps to increase level of competency and hence they get a chance to

improve their working.)

Que.9 Does PA system helps you to clear your objectives and assist you with proper aid?

Performance Appraisal system

Yes - 77%

No - 5%

To some extent - 18%

Yes 62%

No

To some extent 30%

(Through ranking system employees got cleared of their roles and objectives. )

Que.10 Does the PA system motivates you in your work?

Motivation through Appraisal

Yes - 53%

No - 1%

To some extent - 46%

Yes 62%

No

To some extent 30%

Interpretation: The ranking system fair enough to motivate the employees

Que.11 Does Performance Appraisal system guides to realize potential of an individual?

Appraisal assisting in realizing potential

Yes - 93%

No - 7%

Yes

No

Interpretation: Appraisal process assists to realize the potential of the employees.

Que.12 Does your superior guide you about your performance?

Communication of appraisal results

Yes - 94%

No - 0%

To some extent - 6%

Yes

No

To some extent

Interpretation: In NTPC the appraisal process is a two way process and the results are communicated through one to one interviews.

Que.13 Does the self-assessment form assist you to realize your strength and weakness?

Self Appraisal Forms

Yes - 69%

No - 21%

To some extent - 10%

Yes

No

To some extent

Interpretation: Self appraisal forms has been proved to be beneficial to evaluate ones own developmental

areas.

Que.14 Does the reward system after appraisal satisfies you?

Reward System In Appraisal

Yes - 86%

No - 3%

To some extent - 11%

Yes

No

To some extent

Interpretation: The employees of NTPC are satisfied enough through the reward

FINDINGS, CONCLUSION AND SUGGESTIONS

The process of performance appraisal helps the employees and the management to know

the level of employee’s performance compared to the standard/predetermined level.

It was viewed that performance appraisal was useful to decide upon employees promotion/transfer, salary

determination and the like. It has become the basis of employee development.

Performance appraisal indicates the level of desired performance level, level of actual

performance and the gap between the two.

Organizations are likely to develop performance-oriented cultures, in which high performers are seen to

receive extra rewards and lower performers receive lower rewards. If an employee’s performance were

found to be less than ideal, a cut in pay would follow. On the other hand, if their performance was better

than the supervisor expected, a pay rise was in order.

Little consideration was given to the developmental possibilities of appraisal.

Findings through questionnaire:

• In NTPC the appraisal process is a two-way participative process and it happens

at every 6 months.

• Superior communicates their performance and the area of lacking.

• At about 73% of the employees are satisfied with the current appraisal system in

the organization.

• The communication level is very good in the organization and thus helps to

achieve the target easily.

• 94% employees believe that performance appraisal has contributed to their

personal growth.

• 62% employees believe that appraisals develop a high level of competency among

them.

• 77% believes that it help to clear their objectives and what their superior wants to

get from them.

• 53% of the employee believes that it has always motivated them.

• 96% believes that it helps to realize potential of an employee.

• Self-appraisal form also helps to realize the employees potential.

• 58% believes that current performance appraisal system is fair enough to evaluate

their potential and workings.

• 67% of the employees believe that implementing 360 degree performance

appraisal would be beneficial to the employees and the organization.

• During survey it was found that Employees were getting confused when asked

about the awareness related questions.

• Performance appraisal definitely set goals and objectives for employees work and get them promoted

and rewarded as per but it does not provide much opportunity to set employees future career planning and

recognizing the talents.

• No compulsory job rotation practice exists in NTPC.

• Employees are partially satisfied by their performance appraisal procedure. They are not very much

motivated by their ratings and cannot get their development through these.

• Almost all employees accept that the training and development program is very good of Balco but the

main problem is that training need assessment is not done properly and many times the same employees

are given training again and again ignoring the training needs of others.

• Every department head has to follow the performance bell and during every appraisal, the employees

would be classified in different tiers. The department head decided to classify the employees not on

Performance but just on quota system. The purpose of the performance appraisal and classification is not

at all achieved.

• For each employee Job description should be made in which duties and

responsibilities of the employee should be clearly mentioned. The Knowledge,

skills and abilities required to perform the work should be stated clearly. This will

bring more transparency in the job.

CONCLUSIONS:

Performance appraisals are an integral part of managing performance, and unmanaged performance

simply cannot be allowed to happen. The process of managing performance is essentially one of their

performances. It starts with the setting of performance expectations and ends with sanction-rewards and

penalties on appraised performance.

Relationship and mutual understanding develops more quickly with greater frequency of

meetings between manager and staff members.

SUGGESTIONS:

• 360-degree appraisal system can be introduced as a powerful developmental method and quite different

to traditional manager-superior appraisal and can stand alone as developmental method.

• Ensure that 360-degree appraisal method is introduced and applied from top-down

and not bottom up.

• Staff members can be better prepared for the formal appraisal, giving better

results, and saving management time.

• Training and development actions can be broken down into smaller programs,

increasing success rates and motivational effect as a result.

• Performance appraisal should be used not only for giving performance-based incentives but also to

identify average and below average employees and train and develop to make them good performers.

• Appraisal should be done twice a year for executives.

• Training need assessment should be done strictly and training should be given on

that basis because different employees have different training needs.

• Employees should be motivated regularly by their superiors and SBU heads to

come up with their training needs.

• Motivational training should be given to all employees at least in every quarter

and it should be made compulsory for each employee to attend it.

• Appraising talent which involves exploring the actual results achieved by employees within those areas

where they’re held accountable and to examine the level of skills or competencies deemed critical to

current and future jobs and organizational success. In relation to a talent management programme, certain

specific areas are important. For example, the appraisal will not only include an examination of

performance, but will also inevitably include a forecast of potential, which is a prediction of how many

job levels an employee can reach within the organization based on their past or current performance

approaches, training or development needs, career preferences and actual and projected competency

levels. Here, scales are often used in reporting potential to attain

managerial or leadership skills, as well as in the delivery of organizational

objectives

• 360° Appraisal system should be used in place of the current system in which in addition to the

superiors, colleagues and subordinate all around the employee will also appraise him. This will reduce the

personal biases occurring due to superior subordinate relationship. The details of appraisal report should

be kept confidential including the rating. Proper training should be provided to the appraisers regarding

the process and proper method of conducting performance appraisal.

• The company has recently started Global leadership program in which key employees are exchanged in

different companies of the group for a term of 1 or more year which provide them international exposure

and experience.

• Individual development report of these key employees are made by the management and SBU head

based on his past performance and according to his/her KRA future track record for the employee is

planned.

• For special achievements and extra effort CEO kitty (cash reward) is given to the

employees in order to motivate them further.

• Key employees are sent abroad for training to enhance their skill and knowledge

on written bond of 1-3 years.

• Rotate employees to provide them new challenges and new assignments. Companies practicing off

shoring need to provide new challenges and opportunities for skills development through training or job

rotation. It may become the only reason your best employees stay with you.

• For each employee Job description should be made in which duties and responsibilities of the employee

should be clearly mentioned. The Knowledge, skills and abilities required to perform the work should be

stated clearly.

• Provide your best employees with challenging work, show consequences to those employees who are

underperforming and respond to employees' work-family balance and other needs.

• Reward Managers who help good employees grow within the company.

• Conducting the performance appraisal in a timely fashion, as close as possible, or

even before the employee's scheduled review date.

• Offering a balanced evaluation of both the employee's strengths and of their

weakness

• Including a review of key performance areas or projects where an employee has performed well. A bit

of praise can go a long way to lifting an employee's morale and feelings of success on the job.

• Natural interaction during the performance appraisal process - give the employee a chance to speak their

mind as well as help come up with future goals, as well as steer areas of improvement.

• Set goals for the next appraisal period that is quantifiable and achievable. If you have specific projects in

mind use those as a measure of the performance. If you made a list of goals from the last review period,

go over these with the employee as well and talk about how the employee achieved or failed to achieve

the goals and why.

• Don't tie the employee’s performance to a salary increase. It is normal for the employee to expect that a

review will also include an increase as this is traditional, but you should clearly state that the review is

about performance and not about salary.

• To implement Executive Management Development Programme .

• In order to improving the employee career planning in BALCO management should develop a

programme named above. The criterion for selection must be certain standard.

LIMITATIONS:

• Due to some strict rules of the company, all documents cannot be accessed.

• Due to the busy schedules of SBU Heads and employees, they are unable to

impart time to us.

• Sometimes respondents were roaming from one plant to another so they are not

available to guide us.

• Due to low awareness of worker they are unable to give proper view.

• Due to poor communication level between employees and workers accurate

results cannot be founded.

APPENDIX

GOOD MORNING/AFTERNOON/EVENING sir/madams I am ANAMIKA from VISHVESHWARYA

INSTITUTE OF TECHNOLOGY. Currently doing my summer internship here in NTPC for the period of

2 months in the HR department and working on project named Performance Appraisal System and its role

in enhancing employee performance at NTPC under the guidance of Mr Anil Kumar (Associate Manager-

HR), for this I would like to know your views on certain things.

• Are you aware of the appraisal system in your organization?

• When does appraisal process takes place in your organization?

• Are you satisfied with the appraisal system in your organization?

• Does appraisal system benefit you? If yes then how?

• Does it assist you in your personal growth?

• Does it help to develop certain level of competency in your organization?

• Does it help you to clear your objectives| and job roles?

• Does it acts as a motivating agent in your work?

• Is the process effective enough to realize your potential?

• Is the process fair enough to communicate your performance rating?

• Does the self assessment form assist you to realize your potential?

• Does the reward system helps you to get satisfaction through your performance?

• What is the performance level that you expect from your employees? Does the

employee perform according to your expectation?

•Do you feel that if employee career planning and development is done properly then it will result in

improving the performance of employee? If yes give suggestion in this regard.

• Do you think that employee working under you understand their goals and duties

properly? What is being done to ensure this?

• How frequently job movements take place in your division? Do frequent internal job movement’s helps

in increasing the productivity of the job or the person development? What are the programs and processes

that facilitate the internal job movements? Do you have any suggestion in this regard?

• Is the HR department supporting the employee career development efforts? Why do

you feel so? Give suggestion how can this be done effectively?

• Do you think that tools and training provide employees with opportunities to grow in their current job?

Why do you feel so? What are the tools and training require for providing employees with opportunities

to grow in their current job as well as in their career?

• Do you feel that you are adequately planning for developing high performers? What

kind of recognition you want for this?

• Do you think that employee require some more development programs for their

career growth? Any suggestion in this regards?

• Do you satisfied with the current employee appraisal strategies and policy made

HR department?

• Do you think that employee assessment program is implemented properly? Give

suggestion how can this be done effectively?

• Do you feel that job rotation and job enrichment is the best tool for individual

career assessment and development? If yes then it should be encouraged more?

• How do you help your staff develop their career competency in your company? By

courseware, by training, or teaching? Or?

• Do you feel that training programme helps in increasing the performance? Do you

feel that training programme helps in career growth for an employee?

• What can you do to help your employees achieve best performance?

Thank you, sir/ma’am for sparing time out of your busy schedule and improving me with

your valuable inputs.

BIBLIOGRAPHY

Arun Monappa & Mirza S Saiysdain : Personnel Management, Tata Mc

Graw Hill Publishing Company Limited, New Delhi, 11th edition, 1991.

Arun Monappa & Mirza S Saiysdain : Personnel Management, Tata Mc

Graw Hill Publishing Company Limited, New Delhi, 2nd edition.

Rudrabasavaraj. M.N : Dynamic Personnel Administration- management of

human resource, Himalaya Publishing House.

Lakshmipathy. V : Performance Appraisal In Public Enterprises, Himalaya

Publishing House, 1st edition, 1985.

Jucius. J. Michael : Personnel Management, D.B. Taraporevala Sons & Co.

Private Ltd.

Chatterjee .N.N : Performance Appraisal Systems- in public enterprise,

Scope Publications.

Questionnaire

Que.1 Are you aware of the performance appraisal system prevailing in ntpc?

1. Yes -

2. NO -

3 Confused -

Que.2 Does the appraisal system forms a two way participative process?

1. Agree -

2. Partially Agree -

3.Disagree -

Que.3 Are you satisfied with the current appraisal system?

Satisfaction level of employees

1.Yes -

2. No -

3. To some extend -

Que.4 Is the appraisal system fair enough to judge a persons skills ?

Performance Appraisal System

1. To some extent -

2. To large extent -

3. To very large extent -

4. Not at all -

Que.5 What is the purpose or benefit of Appraisal Process?

Performance Appraisal System .

1. Identification of training needs. -

2. Increase in pay scale -

3. Promotion -

4. Transfer -

5. Termination -

Que6. How many times performance appraisal does take place?

Appraisal Process

1. Once a year -

2. Twice a year -

3. Thrice a year -

4. Not known -

Que.7 Does the self-assessment form assist you to realize your strength and weakness?

Self Appraisal Forms

1. Yes -

2. No -

3. To some extent -

Que.8 Does performance appraisal helps to develop competency in your organization?

Personal Growth through PA

1. Yes -

2. No -

3. To some extent -

Que.9.Does performance appraisal assisted you in your personal growth?

Personal Growth through appraisal

1. To some extent -

2. To large extent -

3. To very large extent -

4. Not at all -

Que.10. Does your superior guide you about your performance?

Communication of appraisal results

1.Yes -

2 No -

3. To some extent -

Que.11 Does Performance Appraisal system guides to realize potential of an individual?

Appraisal assisting in realizing potential

1. Yes -

2. No -