performance appraisal system at cesu

SUMMER INTERNSHIP project REPORT OnPerformance Appraisal System

At

CENTRAL ELECTRICITY SUPPLY UTILITY OF ODISHA

Submitted In partial fulfillment of the requirements for the award

of the degree of Master of Business Administration under, BPUT ODISHA

By

Raja nandini badu

Regd: 1506278048

Under the guidance of

External guide internal guide

Mrs. Atasi Samal dr. simanchalA das

Asst.manager (HR) Professor (HR)CESU, BBSR GIM, BBSR

GLOBAL INSTITUTE OF MANAGEMENT

Declaration

I hereby solemnly declare that the project work entitled “Performance Appraisal System” is based on my own work carried out during my summer training under the supervision and guidance of Mrs. Atasi Samal, Asst.Manager (HR).

I assert that the statement made and conclusions drawn are an outcome of the project work. The project report is an original one and doesn’t contain any part of any work that has been submitted for the award of any other certificate in any other university to the best of my knowledge and belief.

Signature:Name:Date:

Preface

Summer internship program(SIP)is the most vital part of a MBA course, both as a link between theory and actual industrial practices as well as an opportunity for hands on experience in corporate environment .I therefore, consider myself fortunate to receive the training in an esteemed organization CENTRAL ELECTRICITY SUPPLY UTILITY(CESU).Yet the opportunity could not have been utilized without the guidance and support of many individuals who although held varied position ,but were equally instrument for although completion of my summer internship program.

Signature:Name:Date: Acknowledgement

I express my sincere, gratitude to the Sr.GM (HR), Head Office, CESU, BBSR for giving me permission to undergo summer internship under this esteemed organization.

I also express my sincere thanks to mrs.Atasi Samal, Asst.Manager (HR), CESU, BBSR. Particularly for her cooperation and help during my project work, without which this couldn’t have been possible.

I would like to express my sincere and special gratitude to my teacher Dr.Simanchala Das, GIM, BBSR for his guidance for my project work.

I am very much grateful to GIM BBSR for providing me an opportunity to undertake a project work entitled “Performance Appraisal System at CESU.

I extend my gratitude to all my friends for their encouragement, support, guidance and assistance for preparing the project report.

Name:Roll no:

Contents

Executive summary

Chapter-1: Introduction Objective of the study Scope of the study Research methodology Limitation of the study Relevance of the study

Chapter-2:COMPANY PROFILE History of the company Vision, Mission, Objective Organizational structure

Chapter-3: Performance Appraisal :A Conceptual Framework Chapter-4: Performance Appraisal System at CESU Chapter-5: Data Analysis & Interpretation

Data analysis Interpretation Major Findings

Chapter-6: Conclusion and Suggestion Conclusion Suggestion

References Appendix:Quesionnaire

EXECUTIVE SUMMERY

Performance Appraisal has become a buzzword in management parlance. In the

changed business environment the importance of performance appraisal of the

employees has became paramount owing to the prevalence of cut through

competition amongst the organization. Though the appraisal system and the

methods there to have changed over a period of time, most of the government run

organization have not yet been found to be following the new methods of

appraisal. Hence there is a debate on the need for the paradigm shift in the system.

The present project is an attempt to address the new trends an appraisal system.

The study was conducted in a power distribution company in odisha i.e. CESU.

The main objective of the study was to review the current performance appraisal

system of the employees at CESU and to suggest majors to make the system more

effective. The findings suggest that there is a lot of gap between theory and

practice so far as implementation is concern. The conclusion suggests that the

managers need to be counselors, helpers and teachers. But in contrast, no

organization goes for a detailed appraisal and the results are not communicated

to the employees. Even if some actions are taken its impact is negligible, as a

result most of the employees consider it a wasteful paperwork. The suggestion is

the performance appraisal system in CESU specifically in case of Non-executive

employees should be more specific and transparent.

INTRODUCTIONPerformance Appraisal is the process of identifying, measuring and

developing human performance in organizations and tries to:

Give feedback to employees to improve subsequent performance.

Document criteria used to allocate organizational rewards.

Form a basis for personnel decisions-salary (merit) increases disciplinary

action, etc.

Provide the opportunity for organizational diagnosis and development.

Facilitate communication between employee and administrator.

“Performance Appraisal System: as one of the vital aspects of Human

Resources Development for all the employees of the company to enable

them to:

Clearly understand their roles in the organization.

Perform effectively in the role against well define objectives.

Develop their skills, knowledge and capabilities both to their and the

organizations advantage and

Seek and achieve a growth of their career in the organization.

1. Objective of the study: To examine the effectiveness of the performance appraisal system

adopted in CESU.

To analyze and evaluate the performance appraisal system in CESU.

To evaluate the methods adopted for performance Appraisal of the

employee in CESU.

To find out the relationship between the appraise & the appraiser.

To analyze the opinions of the employees and supervisors on the

performance appraisal system in CESU.

2. Scope of the study:

Personnel management is the responsibility of all those who manage

people. It is that part of management, which is concerned with people at

work and their relationship within an enterprise. It applies not only to

industry and commerce but all field of employment. Personal management

is the management, which is concerned with effective utilization of human

energies in the accomplishment of the purpose of the organization.

The study was undertaken to know about the organizational structure

of CESU along with their day function. Following departments of the

corporate office of CESU at Bhubaneswar were covered during the study.

Human Resource Department

Public Relation Department

Finance Department

Legal Wing

O&M Department

Safety Department

Store Department

3. Research methodology:

3.1 Sample Design

The simple random sampling technique was employed to select the sample.

As CESU is a vast organization spreading over in nine districts of odisha, it

was not possible to go everywhere. Hence, the sample included only the

representative employees of different categories, supervising authorities of

different disciplines. Care has been taken to give equal representation to all

grades of employees & supervisors.

3.2 Source Of Data:

The data for the study were collected mainly from the two source i.e.

Primary

Secondary

The primary data are the basis but important source, which have been

collected by meeting various employees, executives and other supporting

staff of the CESU. The primary data were collected through schedule

questionnaires.

The secondary data have been collected from the annual reports of

CESU for the last five years, house magazines, different books, journals,

official publications and other materials pertaining to the company. The

secondary data were collected from different official documents, broachers,

annual reports, official files, seminar papers etc.

3.3 Questionnaire Design:

The questionnaire was designed taking into consideration the

various issues discussed in the meetings, current happenings in

organization after an extensive discussion with researchers in the field. The

validity of the instrument has already been tested in some previous

summer projects.

3.4 Data Analysis:

The data collection from primary sources is presented in tabular

form. The analysis of data, which is the ultimate step of this research

report, was done basically by simple averages. Graphical method of

presentation was made.

4. Limitation of the Study

The study of performance appraisal in CESU is very broad but the time

period of the study was limited only to a perception of certain section of

employees. A detail microscopic study was not possible due to time

conscious.

Due to insufficient time period it was impossible to gather some relevant

data which would have enriched the project

Due to work pressure the employees exhibited the reluctance and filling up

the questionnaire.

The response provided may be not accurate from the employee side which

would have affected the project validity and reliability.

5. Relevance of the study

Performance appraisal is the most important tool to check, and manage

the performance of the employee in any organization.

It also helps to reflect the strength and weaknesses of the organization.

If the performance of the organization is managed appropriately then it

would lead to better productivity and employee retention.

(COMPANY PROFILE)

HISTORY OF ORGANISATION

The Odisha Electricity Regulatory Commission (the Commission) vide its

order dated 31.03.1999 passed in case No.2/99, under the provisions of

the Odisha Electricity Reform Act, 1995, had issued License to Central

Electricity Supply Company of Odisha Ltd. (CESCO) Registered Office:

2nd Floor, IDCO Tower, Janpath, Bhubaneswar-751022, Dist: Khurda,

Odisha, to carry out the business of Distribution & Retail Supply in the

area of supply as mentioned in the said license. Under the said license,

CESCO had been carrying out the Distribution and Retail Supply as its

licensed activity in its area of supply as stated in the said license. The

Commission revoked the license of CESCO with effect from 01.04.2005

and on 18.04.2005 the Commission appointed Chief Executive Officer

and Administrator (CEO & A) to discharge the licensed activity of Central

Zone Electricity Distribution and Supply Utility (CZEDSU). Later, vide

order dt.08.09.2006, the Commission in exercise of power u/s 22 of the

Electricity Act,2003 has formulated a Scheme named “ Central Electricity

Supply Utility of Odisha ( Operation and Management ) Scheme ,

2006 for operation and management of the Utility. The said Scheme

shall remain in force for a period of 2 years which may be extended by the

Commission in public interest. Under the provisions of said Scheme, all

assets, liabilities, rights, proceedings and manpower as well as the

license for distribution and supply of electricity held by CESCO has been

developed and vested on Central Electricity Supply Utility of Odisha

(CESU) and it has been authorized to carry out the business of

distribution of electricity in accordance with license conditions in respect

of area assigned to CESCO under revoked license has to abide by the

directions of the Commission issued from time to time. The period of the

Scheme is further extended for a period of one year w.e.f. 08.09.2010 to

07.09.2011.As per provision of aforesaid scheme; the Commission has

also constituted a Management Board for the general / overall

management of CESU. The scheme was again amended and extended

up to 07.09.2016. Under the aforesaid Scheme, the CESU has to comply

with the provisions of the Electricity Act, 2003 and other relevant statutory

provisions and license conditions with regard to distribution of electricity in

its area of supply.

Our Vision

To ensure uninterrupted quality and reliable power supply to its

consumers.

To be the best distribution utility of India.

To make every work place a safe working place.

To be socially responsible for employees and society.

Our Mission

Be a corporate responsible to care for human beings.

To adopt a profitable policy to create a happy workforce & adopt best

work culture & practices.

To Follow fair labor welfare practices & by eliminating fear of

redundancy from the mind of people through proper training.

Managing the change process by good and fair HRD Practices.

To deploy latest technologies in the system to bring transparency.

Core Values

Customer Focus

Organization pride

Quality & reliable services

Mutual respect & pride

Initiative & Speed

Organization structure:

Chairman

CEO CFO

HR & a Wing

Technical wing

Commerce wing

Finance wing

Consumer relation wing

Public relation

Law

Field officer

Electrical power has become almost as much of a necessity as water in our

everyday lives. No one really thinks much about it until an outage occurs

and it isn't there. It is used twenty-four hours a day, seven days a week,

and fifty-two weeks a year. We use it for heating, cooling, cooking,

refrigeration, light, sound, motion, computation and entertainment.

Electrical power is a dynamic commodity and must be produced as it is

being used. Production of electrical power we use occurs in many power

plants across the state of Orissa. The majority of these plants burn coal to

produce electrical power, however, some are powered by water

(hydroelectric), natural gas, oil, nuclear, wind and geothermal. In all cases

energy from the fuel source is used to spin an electrical generator

producing three-phase AC electrical power. CESU has no generation

capacity of its own. Electrical power used on the CESU Electric distribution

system is purchased from NTPC/GRIDCO/OHPC through different

Services.

NTPC provides this power from its coal fired generation at the Talcher

power plant. The remainder is purchased from OHPC.

At most power plants electrical power is generated at 11KV. In the

generating station generator is used to step the voltage up to a

transmission voltage level somewhere between 132KV - 500KV. This high

http://www.cescoorissa.com/images/powersupply.bmp

voltage electrical power is then transported from the power plant to primary

distribution substations through the transmission system. These extremely

high voltages used on the transmission system allow for a greater amount

of power to be transported across the system with less electrical line losses

and greater efficiency. These transmission lines are supported by either

steel towers or wood poles, primarily dependent upon the level of voltage of

the transmission line.

In primary substation, step down transformers are used to reduce the

voltage to a range of 33KV to 66KV.Then electrical power is carried by the

transmission system to a number of power or distribution substations where

the electrical power is stepped down by means of a distribution transformer

to voltage levels between 400V and 11KV for distribution to individual

customers. CESU receives its electrical power at a transmission voltage of

volts at 132KV-33KV at nineteen distribution substations located

throughout its Five Circles in Orissa. CESU then distributes the power from

the distribution substations across its distribution grid to its members at a

three phase primary voltage level of 440V/11KV/33KV and a single phase

primary voltage level of 230 volts.

CESU distribution grid consists of 1800 miles of single phase, 230 volt line

and 750 miles of three phases, 440 lines. In order to provide members

electrical power at their required service voltages, distribution transformers

are installed along the line at each business, residence and farm.

Residential services and most farms require 230 volt single phase service

which is provided by a single distribution transformer located on the pole or

on a concrete pad at the member location. Some farms, larger businesses

and the many irrigation services served by the cooperative require three

phase services. These three phase services may be 440V, 11KV, 33KV.

These services are provided by three single phase distribution transformers

wired together to form a three phase bank located on the pole adjacent to

the service, or by a single three phase transformer located on a concrete

pad at the member location. From the distribution transformer or

transformer bank, secondary and/or service conductors are installed to the

electrical meter, located either on a metering pole or on the member's

house or building. The meter measures all energy used by the member in

kilowatt hours (KWH). In the case of three phase services the meter also

measures kilowatt (KW/KVA) demand which reflects the highest fifteen

minute requirement for power. This meter is used by the cooperative to

determine the member's electrical requirements as well as for billing

purposes. From the meter the member or his electrician installs the service

entrance conductors which provide power to the main electrical panel

within the house or building from which the member's lighting and power

loads are served.

Distribution Sub-Divisions of CESU

► Electrical Circle - I ,Bhubaneswar Bhubaneswar City Distribution Division- I (BCDDI)

SDO1

SDO2 SDO3

Bhubaneswar City Distribution Division- II (BCDDII) KHANDAGIRI NAYAPALLI PERIPHERY

Bhubaneswar Electrical Division, Bhubaneswar (BED) RASULGARH TEMPLE

Nimapada Electrical Division, Nimapada (NED) KAKATPUR NIMAPARA PIPILI► Electrical Circle - II ,Bhubaneswar

Khurda Electrical Division, Khurda (KHD)

BANKI

BEGUNIA

JANKIA

JATNI

KHURDA

Puri Electrical Division, Puri (PED)

PURI-1

PURI-2

PURI-3

SAKHIGOPAL

Nayagarh Electrical Division, Nayagarh (NYD)

DASAPALLA

ITAMATI

KHANDAPARA

NAYAGARH

Balugaon Electrical Division, Balugaon(BAED)

BALUGAON

TANGI

► Electrical Circle, Cuttack

Athagarh Electrical Division,Athagarh (AED)

ATHAGARH

NARASINGHPUR

City Distribution Division- I ,Cuttack (CDDI)

SDO-1

SDO-3

SDO-4

SDO-6

City Distribution Division- II ,Cuttack (CDDII)

BADAMBADI

JOBRA

MAHANADI VIHAR

Cuttack Electrical Division, Cuttack (CED)

BADACHANA

CHOUDWAR

GOPALPUR

Salipur Electrical Division,Salipur (SED)

MAHANGA

NISCHINTA KOILI

SALIPUR

► Electrical Circle,Dhenkanal

Angul Electrical Division, Angul(ANED)

ANGUL

BOINDA

CHENDIPADA

Dhenkanal Electrical Division, Dhenkanal (DED)

DHENKANAL

GONDIA

HINDOL ROAD

KAMAKHYA NAGAR

Talcher Electrical Division, Talcher (TED)

CHAINPAL

PALLAHARA

PARJANG

TALCHER

► Electrical Circle,Paradeep

Jagatsinghpur Electrical Division, Jagatsinghpur (JED)

BALIKUDA

JAGATSINGPUR

R N PUR

Kendrapara Electrical Division, Kendrapara (KED)

AUL

KENDRAPARA

PATTAMUNDAI

RAJNAGAR

Marshaghai Electrical Division, Marshaghai (MED)

MAHAKALPADA

MARSAGHAI

Paradeep Electrical Division, Paradeep (PDP)

KUJANGA

PARADEEP

TRITOL

Performance Appraisal: A conceptual frameworkA performance appraisal is a systematic and periodic process that

assesses an individual employee's job performance and productivity in

relation to certain pre-established criteria and organizational objectives

Other aspects of individual employees are considered as well, such

as organizational citizenship behavior, accomplishments, potential for

future improvement, strengths and weaknesses, etc.

To collect PA data, there are three main methods: objective production,

personnel, and judgmental evaluation. Judgmental evaluations are the

most commonly used with a large variety of evaluation

methods. Historically, PA has been conducted annually (long-cycle

appraisals); however, many companies are moving towards shorter cycles

(every six months, every quarter), and some have been moving into short-

cycle (weekly, bi-weekly) PA. The interview could function as

"providing feedback to employees, counseling and developing employees,

and conveying and discussing compensation, job status, or disciplinary

decisions".

PA is often included in performance management systems. PA helps the

subordinate answer two key questions: first, "What are your expectations of

me?" second, "How am I doing to meet your expectations?"

Performance management systems are employed "to manage and align"

all of an organization's resources in order to achieve highest possible

performance. "How performance is managed in an organization determines

to a large extent the success or failure of the organization. Therefore,

improving PA for everyone should be among the highest priorities of

contemporary organizations".

Some applications of PA are compensation, performance improvement,

promotions, termination, test validation, and more. While there are many

potential benefits of PA, there are also some potential drawbacks. For

example, PA can help facilitate management-employee communication;

however, PA may result in legal issues if not executed appropriately, as

many employees tend to be unsatisfied with the PA process. PAs created

in and determined as useful in the United States are not necessarily able to

be transferable cross-culturally.

1. Potential Benefits :

There are a number of potential benefits of organizational performance

management conducting formal performance appraisals (PAs). There has

been a general consensus in the belief that PAs lead to positive

implications of organizations. Furthermore, PAs can benefit an

organization’s effectiveness. One way is PAs can often lead to giving

individual workers feedback about their job performance. From this may

spawn several potential benefits such as the individual workers becoming

more productive.

2. Other Potential Benefits Include:

Facilitation of communication: communication in organizations is

considered an essential function of worker motivation. It has been

proposed that feedback from PAs aid in minimizing

employees’ perceptions of uncertainty. Fundamentally, feedback and

management-employee communication can serve as a guide in job

performance.

Enhancement of employee focus through promoting trust: behaviors,

thoughts, and/or issues may distract employees from their work, and trust

issues may be among these distracting factors. Such factors that

consume psychological energy can lower job performance and cause

workers to lose sight of organizational goals. Properly constructed and

utilized PAs have the ability to lower distracting factors and encourage trust

within the organization.[

Goal setting and desired performance reinforcement: organizations

find it efficient to match individual worker’s goals and performance with

organizational goals. PAs provide room for discussion in the collaboration

of these individual and organizational goals. Collaboration can also be

advantageous by resulting in employee acceptance and satisfaction of

appraisal results.

Performance improvement: well constructed PAs can be valuable

tools for communication with employees as pertaining to how their job

performance stands with organizational expectations. "At the organizational

level, numerous studies have reported positive relationships between

human resource management (HRM) practices “and performance

improvement at both the individual and organizational levels.

Determination of training needs: “Employee training and development

are crucial components in helping an organization achieve strategic

initiatives”. It has been argued that for PAs to truly be effective, post-

appraisal opportunities for training and development in problem areas, as

determined by the appraisal, must be offered. PAs can especially be

instrumental for identifying training needs of new employees. Finally, PAs

can help in the establishment and supervision of employees’ career goals.

3. Methods Of Performance Appraisal

Numerous methods have been devised to measure the quantity and quality

of performance appraisals. Each of the methods is effective for some

purposes for some organizations only. None should be dismissed or

accepted as appropriate except as they relate to the particular needs of the

organization or an employee.

Broadly all methods of appraisals can be divided into two different

categories.

Past Oriented Methods

Future Oriented Methods

3.1. Past Oriented Methods

3.1.1 Rating Scales: Rating scales consists of several numerical scales

representing job related performance criterions such as dependability,

initiative, output, attendance, attitude etc. Each scales ranges from

excellent to poor. The total numerical scores are computed and final

conclusions are derived.

Advantages – Adaptability, easy to use, low cost, every type of job can

be evaluated, large number of employees covered, no formal training

required.

Disadvantages – Rater’s biases

3.1.2 Checklist: Under this method, checklist of statements of traits of

employee in the form of Yes or No based questions is prepared. Here the

rater only does the reporting or checking and HR department does the

actual evaluation.

Advantages – economy, ease of administration, limited training

required, standardization.

Disadvantages – Raters biases, use of improper weighs by HR, does

not allow rater to give relative ratings.

3.1.3 Forced Choice Method: The series of statements arranged in

the blocks of two or more are given and the rater indicates which statement

is true or false. The rater is forced to make a choice. HR department does

actual assessment.

Advantages – Absence of personal biases because of forced choice.

Disadvantages – Statements may be wrongly framed.

3.1.4. Forced Distribution Method: here employees are clustered

around a high point on a rating scale. Rater is compelled to distribute the

employees on all points on the scale. It is assumed that the performance is

conformed to normal distribution.

Advantages – Eliminates

Disadvantages – Assumption of normal distribution, unrealistic, errors

of central tendency.

3.1.5 Critical Incidents Method: The approach is focused on certain

critical behaviors of employee that makes all the difference in the

performance. Supervisors as and when they occur record such incidents.

Advantages – Evaluations are based on actual job behaviors, ratings

are supported by descriptions, feedback is easy, reduces recency biases,

chances of subordinate improvement are high.

Disadvantages – Negative incidents can be prioritized, forgetting

incidents, overly close supervision; feedback may be too much and may

appear to be punishment.

3.1.6 Behaviorally Anchored Rating Scales: statements of

effective and ineffective behaviors determine the points. They are said to

be behaviorally anchored. The rater is supposed to say, which behavior

describes the employee performance.

Advantages – helps overcome rating errors.

Disadvantages – Suffers from distortions inherent in most rating

techniques.

3.1.7 Field Review Method: This is an appraisal done by someone

outside employees’ own department usually from corporate or HR

department.

Advantages – Useful for managerial level promotions, when comparable

information is needed,

Disadvantages – Outsider is generally not familiar with employees work

environment, Observation of actual behaviors not possible.

3.1.8 Performance Tests & Observations: This is based on the

test of knowledge or skills. The tests may be written or an actual

presentation of skills. Tests must be reliable and validated to be useful.

Advantage – Tests may be apt to measure potential more than actual

performance.

Disadvantages – Tests may suffer if costs of test development or

administration are high.

3.1.9 Confidential Records: Mostly used by government departments,

however its application in industry is not ruled out. Here the report is given

in the form of Annual Confidentiality Report (ACR) and may record ratings

with respect to following items; attendance, self expression, team work,

leadership, initiative, technical ability, reasoning ability, originality and

resourcefulness etc. The system is highly secretive and confidential.

Feedback to the assesses is given only in case of an adverse entry.

Disadvantage is that it is highly subjective and ratings can be manipulated

because the evaluations are linked to HR actions like promotions etc.

3.1.10 Essay Method : In this method the rater writes down the

employee description in detail within a number of broad categories like,

overall impression of performance, promote ability of employee, existing

capabilities and qualifications of performing jobs, strengths and

weaknesses and training needs of the employee.

Advantage – It is extremely useful in filing information gaps about the

employees that often occur in a better-structured checklist.

Disadvantages – It its highly dependent upon the writing skills of rater

and most of them are not good writershey may get confused success

depends on the memory power of raters.

3.1.11 Cost Accounting Method: Here performance is evaluated

from the monetary returns yields to his or her organization. Cost to keep

employee, and benefit the organization derives is ascertained. Hence it is

more dependent upon cost and benefit analysis.

3.1.12 Comparative Evaluation Method (Ranking & Paired

Comparisons): These are collection of different methods that compare

performance with that of other co-workers. The usual techniques used may

be ranking methods and paired comparison method.

Ranking Methods : Superior ranks his worker based on merit,

from best to worst. However how best and why best are not elaborated in

this method. It is easy to administer and explanation.

Paired Comparison Methods : In this method each employee is

rated with another employee in the form of pairs. The number of

comparisons may be calculated with the help of a formula as under.

N x (N-1) / 2

3.2Future Oriented Methods:

3.2.1 Management by Objectives : It means management by

objectives and the performance is rated against the achievement of

objectives stated by the management. MBO process goes as under.

Establish goals and desired outcomes for each subordinate

Setting performance standards

Comparison of actual goals with goals attained by the employee

Establish new goals and new strategies for goals not achieved in

previous year.

Advantage – It is more useful for managerial positions.

Disadvantages – Not applicable to all jobs, allocation of merit pay may

result in setting short-term goals rather than important and long-term goals

etc.

3.2.2 Psychological Appraisals: These appraisals are more directed

to assess employee’s potential for future performance rather than the past

one. It is done in the form of in-depth interviews, psychological tests, and

discussion with supervisors and review of other evaluations. It is more

focused on employees emotional, intellectual, and motivational and other

personal characteristics affecting his performance. This approach is slow

and costly and may be useful for bright young members who may have

considerable potential. However quality of these appraisals largely depends

upon the skills of psychologists who perform the evaluation.

3.2.3 Assessment Centers: This technique was first developed in

USA and UK in 1943. An assessment center is a central location where

managers may come together to have their participation in job related

exercises evaluated by trained observers. It is more focused on

observation of behaviors across a series of select exercises or work

samples. Assesses are requested to participate in in-basket exercises,

work groups, computer simulations, role playing and other similar activities

which require same attributes for successful performance in actual job. The

characteristics assessed in assessment center can be assertiveness,

persuasive ability, communicating ability, planning and organizational

ability, self confidence, resistance to stress, energy level, decision making,

sensitivity to feelings, administrative ability, creativity and mental alertness

etc.

Disadvantages – Costs of employees traveling and lodging,

psychologists, ratings strongly influenced by assessor’s inter-personal

skills. Solid performers may feel suffocated in simulated situations. Those

who are not selected for this also may get affected.

Advantages – well-conducted assessment center can achieve better

forecasts of future performance and progress than other methods of

appraisals. Also reliability, content validity and predictive ability are said to

be high in assessment centers. The tests also make sure that the wrong

people are not hired or promoted. Finally it clearly defines the criteria for

selection and promotion.

3.2.4 360-Degree Feedback: It is a technique which is systematic

collection of performance data on an individual group, derived from a

number of stakeholders like immediate supervisors, team members,

customers, peers and self. In fact anyone who has useful information on

how an employee does a job may be one of the appraisers. This technique

is highly useful in terms of broader perspective, greater self-development

and multi-source feedback is useful. 360-degree appraisals are useful to

measure inter-personal skills, customer satisfaction and team building

skills. However on the negative side, receiving feedback from multiple

sources can be intimidating, threatening etc. Multiple raters may be less

adept at providing balanced and objective feedback.

Performance Appraisal System at CESU

Central Electricity Supply Utility of Odisha ltd,(in short CESU) is a reform

structure of OSEB, which was semi-Government Organization in CESU,

there are 02(Two)types of Performance Appraisal System:

1. Closed ended appraisal system

2. Open ended appraisal system

1. Close ended appraisal system (Confidential Characteristic Roll)

Close ended appraisal system is followed in case of Non-Executive

employee. There are different CCRs depending upon the nature of work

e.g. Office Assistant, Employee under training & Accounts personnel.

The CCRs Forms prescribed for various categories of employees are

furnished in the appendix-I, II & III.

A confidential report (CCR) is submitted on the performance of the

employee. Only where an adverse assessment is made against an

individual employee, the individual employee concerned is informed about

the same.

1.1Contents of the CCRs are as under:

Job Knowledge

Quality of Work

Leadership

Problem solving and decision making

Planning & Organizing

Responsibility & Accountability

Customer Service

Business Judgment

Ability to work with others

Motivating others

Creativity

Initiative and Enthusiasm

Interpersonal Competence

Communication skill

Integrity and courage

Honesty and sincerity

1.2Custody of CCRs:

CCRs of Non-executive employees are recorded in the forms

prescribed for various categories of employees and are maintained in the

offices of Appointing Authorities. The CCRs of Divisional Cadre employees

are maintained in the offices of Divisional Authorities. The CCRs of Circle

Cadre employees are maintained in the offices of Circle Cadre Authorities.

The CCRs of Head Office Cadre employees are maintained in Head Office.

2. Open ended appraisal system:

(Executive appraisal report) Open ended appraisal system is followed in case of appraisal of

performance of the executive employees. Performance of the individual is

discussed with the appraise and the appraise is ranked in a point rating

scale.

The results of appraisal are normally used to:

1. Estimate the overall effectiveness of an employee in performing their

jobs.

2. Identify strength and weakness in job knowledge and skill.

3. Determine whether subordinates responsibilities can be expanded.

4. Identify future Training & Development needs.

5. Review progress towards goals and objectives.

6. Determine readiness for promotion. and

7. Motivate & Guide growth and development.

2.1 Levels of assessment:

There are 3(Three) levels of assessment such as

Reporting Authority

Reviewing Authority

Accepting Authority

Reporting authority is the officer who is in immediate supervision of the

work of the employee reported upon.

Reviewing authorities & Accepting authorities are those officers who have

occasion to see the work of the officer reported upon.

CESU which is an out-come of the reform process in the state has adopted

an Open Ended Appraisal System for assessment of the performance of its

executives. It is based on the principle that Development or Changes takes

place only if the appraise is interested any development or change. Such

desire is normally an outcome of self-review or reflection. It is an

opportunity for the appraise to recapitulate and list-down his

accomplishment and failure important part of the self-appraisal is the

process of review and reflection through performance analysis.

In the performance analysis the appraiser:

1. Complements the appraise for his accomplishment and good qualities.

2. Understand and appreciate his difficulties and make action plans to help

in the future.

3. Understand the appraiser’s perception of the situation and correct the

perceptions, if necessary.

4. Help him to recognize his strong points and weak points.

5. Communicate the expectation of the appraiser from the appraisee, and

6. Identify developmental needs of the appraisee and chalk out a course of

action for meeting theses needs.

2.2 General guide lines:

EPAR forms are to be written by the Appraisee himself according

to the financial year (1st APRIL to 31st MARCH).The appraisee mansions

about the significant achievements and contributions made by him during

the period under review, major constraints and difficulties he faced in

accomplishing the desired level during the period under review. Appraisee

mentions about submission of annual report on immovable properties.

Appraisee mentions about responsibility and specific tasks and targets

assigned to him or carried out by him during the period under review.

Appraisee submits his Appraisal Report to his Reporting Authority. Then

Reporting Authority calls the appraisee for a discussion on the

responsibility, tasks assignments and targets entrusted to the appraisee

during the period under review, about the constraints he faced in

accomplishing the tasks. Discuss, about the major strength and weakness

of the appraisee. The 2nd part of the EPAR form is the confidential part,

which is recorded by the reporting Authority himself. Reporting Officer

assesses the work performance and managerial traits of the officer

concerned in a point rating and Weight age method, basing on which an

overall evaluation is made. Over all evaluation varies within 5(five) grades.

These are “OUTSTANDING”, “VERY GOOD”, “AVERAGE”& “BELOW

AVERAGE”. If the appraisee is rated “Outstanding” or “Below Average” the

Reporting Officer substantiates the same with specific comments. Then the

EPAR is submitted to the Reviewing Authority makes a review of the

assessment made by the reporting officer and gives his rating. Finally, the

EPAR is submitted to the Accepting Authority who gives his observation on

the same and give his final rating of the apraisee. Last part of the EPAR

contains the training and development needs of the appraisee during the

appraisal period. The Reporting and Reviewing Authorities make their

specific recommendations after making an assessment of appraisee’s

performance, knowledge, skills and attitude. Similarly, remark of the

accepting authority prevails over the Reviewing Authority. Adverse remark

recorded by the Reporting Authority is waived out, if these remarks have

been counter-balanced by the reviewing Authority or Accepting Authority.

Same methods are adopted regarding communication of adverse remarks,

submission of representation by the appraisee and disposal of

representation as followed in case of Confidential Characteristic Roll

(CCR).

The Performance appraisal report should reach the accepting authority by

31st May.

2.3 Factors of overall evaluation:

For overall evaluation, weightage is ascribed to two factors namely

a) Work Performance &

b) Managerial Traits

a) Attributes under Work Performance:

There are different parameters/ attributes to be

selectively used relevant to the nature of the job of the appraise. Work

Performance attributes are there for:

A. Engineers posted at field units

B. Engineers posted at the corporate office

C. HR functionaries

D. Finance managers

E. Public relations managers

F. For legal functionaries

b) Attributes under Managerial Traits:

1. Problem analysis and decision making (Identification of problems,

formulation of alternative solutions and their evaluation)

2. Initiative/creativity(Ability to give shape to imaginative and innovative

ideas)

3. Group effectiveness(ability to work in teams, sensitivity to other)

4. Communication skills(persuasive and appropriate written/ oral

communication, clarity of thought and good presentation)

5. Development of sub-ordinates(ability to delegate, guide, train and

objectively assess subordinates)

Prescribed booklet of EPAR is furnished in the Appendix-II.

2.4 Overall assessment:

Overall assessment of the employee reported upon is generally summed

up into one of the following grades:

“OUTSTANDING”

“VERYGOOD”

“GOOD”

“AVERAGE”

“BELOW AVERAGE”

If the employee is awarded “OUTSTANDING” or “BELOW AVERAGE”,

reason of awarding such grading is to be justified by the Authority

concerned.

If the employee concerned is working for less than 3 months under the

Reporting Authority, a “No Remark Certificate “is to be recorded in the

CCR.

2.5 Communication of adverse remarks:

Adverse remarks are communicated directly to the employee

concerned by the officer kept in charge of CCRs. Appointing Authority is

the final authority to decide whether a particular remark is adverse or not.

The remark of the countersigning officer prevails over that of the Reporting

Officer. Similarly; the remark of the Accepting Authority prevails over that of

the countersigning officer. Below Average grading is always treated as

Adverse Remark and is always communicated. While communicating

adverse remark, the employee concerned is asked to submit his

presentation, if any. If such, presentation is received the same is endorsed

to the authority of adverse remark to furnish his comments on the

representation. Then the representation is disposed of by the cadre

Authority and is communicated to the employee concerned.

Data Analysis and InterpretationThis chapter contains the opinion survey of the workers, trainees and

managerial, executives and non-executive personnel on the effectiveness

of the performance appraisal system in CESU. Because of their busy

schedule only 25 executives and 25 Non-executives formed the sample to

be interviewed from various department of CESU.

OPINION SURVEY OF EXECUTIVES AND NON-EXECUTIVES:

1. In your Opinion Performance Appraisal is:

a. Evaluation of Employees, b. Promotion of Employees,

c. Job Satisfaction of Employees, d. Motivation

Interpretation:

Parameter No of respondents Percentage

Evaluation of employees 30 60%

Promotion of employees 20 40%

Job satisfaction of

employees

- -

Motivation - -

Total 50 100%

Evaluation of employeespromotion of employeesJob satisfaction of employeesMotivation

60% of employees believe that In Performance Appraisal is evaluation of

employees. Other 40% are believed that performance appraisal is

promotion of employees.

2. Do you receive any increment in your salary after performance

appraisal:

Interpretation:


Yes - -

No 50 100

Total 100%

YesNo

Hence, it is a government organization there is no link between

performance appraisal and salary increment.

3. Do you think that performance appraisal helps to provide an

atmosphere where all are encouraged to share each other’s

burden:

Interpretation:


Yes 25 50%

No 25 50%

Total 50 100%

YesNo

50% of the employ think that performance Appraisal help to provide an

atmosphere where all are encouraged to share one another burden.

4. Do you think performance appraisal helps people set and

achieve meaningful goals:

Interpretation:


Yes 45 90%

No 5 10%

Total 50 100%

YesNo

90% of employ think that performance appraisal helps people set and

achieve meaningful goals. 10% of employ think that performance appraisal

helps people set and achieve meaningful goals.

5. Do you think performance appraisal give constructive criticism in a

friendly and positive manner?

Interpretation:


Yes 50 100%

No - -

Total 50 100%

YesNo

100% employ of CESU think that performance appraisal give constructive

criticism in a friendly and positive manner.

6. Do you think that performance of employees is improved after the

process of performance appraisal:

Interpretation:


Yes 35 70%

No 15 30%

Total 50 100%

YesNo

70% of employees say yes that performance appraisal improve

performance of employees.30% of employees say no that performance

appraisal improve performance of employees.

7. Do you think performance appraisal improves motivation and

job Satisfaction:

Interpretation:


Yes 35 70%

No 15 30%

Total 50 100%

YesNo

70% of employees say yes that performance appraisal improves job

satisfaction. 30% of employees say no that performance appraisal

improves job satisfaction.

8. When performance appraisal is made in the organization:

a. Monthly

b. Quarterly

c. Yearly

d. Others

Interpretation:


Monthly - -

Quarterly - -

Yearly 50 100

Others - -

Total 50 100%

MonthlyQuarterlyYearlyOthers

Because it’s a government organization therefore the performance

appraisal made on yearly basis.

Major Findings:

In the project study the questionnaire has been framed as such that it

covers almost all spheres under performance appraisal.

Not only the close-ended questions, but also open-ended questions have

been asked where the feedbacks have been taken care of individually.

Depending upon the results, the subjective responses are also presented in

a tabular manner, along with which pie-charts give a clear-cut picture of the

responses for certain type of questions which reveals the nature &

genuinely of the research.

The feedback given in percentage is clearly showing the weight age of any

option with regard to the total options available.

From the survey report it is inferred that:

As it’s a government organization, the performance appraisal is done on an

annual basis.

Maximum no of employees believe that performance appraisal improves

job satisfaction.

Maximum no of employees believe that performance appraisal improves

performance of employees.

Every employee of CESU thinks that performance appraisal gives

constructive criticism in a friendly and positive manner.

Maximum numbers of employees think that performance appraisal helps

people set and achieve meaningful goals.

Half of the employee thinks that performance Appraisal help to provide an


Hence, it is a government organization there is no link between

performance appraisal and salary increment.

More employees believe that in Performance Appraisal, evaluation of

employees. Others believe that performance appraisal leads to promotion

of employees.

CONCLUSION In the volatile environment, which is dynamic and changing fast, it is quite

difficult to motivate the employees and make them happy in their work. The

quality of an appraiser is much more crucial than the appraisal methods. As long

as human being evaluates another, there would be some subjectivity in

assessment. Thus it is essential to balance the subjectivity and objectivity in the

appraisal system to make it people oriented, workable and productive. Moreover,

the purpose of the system should be more developmental rather than punitive in

nature. In a good performance appraisal system:

Officers and workers are well aware of the performance appraisal system.Officer

and workmen are familiar with the traits on which they are evaluated. Feed back

is given properly in employee’s case. They receive feedback only in cases they are

lacking. Self appraisal is beneficial for executives. Functional benefits, co-

operatives boss, working conditions etc. affect their performance but promotion

is the most important factors which affect performance. The success of

performance appraisal system depends on the sincerity shown by the

management and the existence of transparent link between performance and

reward. The aim is to develop employees. The managers need to be counselors,

helpers and teachers. But in contrast, no organization goes for a detailed

appraisal and the results are not communicated to the employees. Even if some

actions are taken its impact is negligible, as a result most of the employees

consider it a wasteful paperwork.

SUGGESTION

After thorough study of the present Performance Appraisal System in CESU, following suggestions are made:

1. The performance appraisal system in CESU specifically in case of Non-executive employees should be more specific and transparent.

2. To improve the performance there should be a system of disincentive for performing and underperforming.

3. The purpose of performance appraisal should not be promotion oriented but developmental oriented.

4. Outstanding performers should be rewarded and motivated.5. The performance review meeting should be conducted at least

one in a year as stipulated in the system.6. Opportunity must be given to employees for expressing and

indicating the major constraints and difficulties they face in accomplishing the desired level of performance.

7. Sub-ordinates and should also be included for rating (360 degree method).

8. Present feedback system has got its significance in its manual only. It should be more practical.

BIBLIOGRAPHY

BOOKS:

HUMAN RESOURCE MANAGEMENT(S.S KHANKA) HUMAN RESOURCE MANAGEMENT(P.C TRIPATHI) HUMAN RESOURCE AND DEVELOPMENT (VSP RAO) HUMAN RESOUCE AND DEVELPOMENT (T.N.CHABRA)

HUMAN RESOURCE MANAGEMENT (BISWANATH GHOSH)

WEBSITE’S NAME

www. cesuorissa .com www.citehr.com

REFERENCES

1. CESU officer’s service regulation.2. Relevant Circulars issued on maintenance of CCRs/EPARs.

APPENDIX

QUESTIONNAIRE

Topic Performance Appraisal in CESU Executive View

(This questionnaire is confidential and it is made for study purpose only.

This is used only for project not for official purpose)

http://www.cesuorissa.com/

Please make a tick mark whichever applicable:

a) Name-(optional):

b) Department:

c) Designation:

1. No of year for service

a. Less than 5 years

b. 5 to 10 years

c. 11 to 20 year

d. 21 to 30 year

e. Above 30 year

2. In your Opinion Performance Appraisal is?

a. Evaluation of Employees

b. Promotion of Employees

c. Job Satisfaction of Employees

d. Motivation

1. Do you receive any increment in your salary after performance

Appraisal?

a. Yes

b. No

2. Do you think that performance Appraisal help to provide an


a. Yes

b. No

3. Do you think performance appraisal helps people set and achieve

meaningful goals?

a. Yes

b. No

4. Do you think performance appraisal give constructive criticism in a

friendly and positive manner?

a. Yes

b. No

5. Do you think that performance of employees improve after process of

performance appraisal?

a. Yes

b. No

6. Do you think performance appraisal improves motivation and job

Satisfaction?

a. Yes

b. No

7. When performance appraisal is made in the organization?

e. Monthly

f. Quarterly

g. Yearly

h. Others

Recruiting & HR

performance appraisal system at cesu