MAGADH MAHILA COLLEGE

A SYNOPSIS
ON

“PERFORMANCE APPRAISAL & PROMOTION”

AT
BIHAR STATE POWER HOLDING COMPANY LIMITED

PROJECT REPORT
Submitted in partial fulfillments of the requirement for the award of the degree of

Master of Business Administration

Under the guidance of: Prepared by:

Mr. Sunil kumar singh Anju kumari
Department of MBA MBA
Magadh Mahila College, Session: 2015-17
Patna University

Declaration

I hereby declare that the work presented herein is genuine work done
originally by me and has not been published or submitted elsewhere for the
requirement of a degree program. Any literature, data or works done by others
and cited within this dissertation has been given due acknowledgement and
listed in the reference section.

Signature of the Candidate

(Anju Kumari)
 ACKNOWLEDGEMENT
I express great pleasure in introducing my project report On “RECRUITMENT
AND SELECTION PROCESS” at Bihar State Power Holding Company Ltd.
A considerable amount of thinking, analysis and informational inputs from various
sources are involved in preparing this project report.
I express my sincere and heartfelt gratitude to Mr. Sunil Kumar Singh, for
providing me with an enviable opportunity to execute this project in their esteemed
organization and for patiently mentoring and guiding me throughout the project.
This project wouldn’t have been successful without the precious guidance and
untiring inspiration of Mr. Sunil Kumar Singh (Sr. Manager (Personnel),
BSPHCL), in spite of their very busy schedule; they made sure in every way that I
acquire the best possible exposure and knowledge during my project days.
Moreover, I would also like to thank all the employees of BSPHCL (H.R Dept.) for
their constant support and help.
I would also like to thanks Dr. Poonima shekhar singh (co-ordinator of MBA) for
the coordination and support in completion of this project and all my friends and
many other who have helped me during the completion of my project. Without
their valuable support this project will not be possible.
Mere acknowledgement may not redeem the debt I owe to my parents for their
direct/indirect support during the entire course of this project.

ANJU KUMARI
 PREFACE
This project is empirical presentation of Performance Appraisal &
PROMOTION in BSPHCL.

Performance appraisal occupies an important place in an organization. Today

almost in every business organization appraisal system is conducted with different
techniques to maintain the performance of an employee who is working in an
organization. Every employee wants to know that the effort which he is giving to
organization is valuable or not.

The organization uses various techniques to trace out the performance of

employees to utilize the best effort of an employee. They even conduct survey with
customer know over it.

This report is also based on the internship experience, through the working
environment.
 EXECUTIVE SUMMARY
The main objective of this project is to check the Appraisal System of executives
and the workers in an organization is using a correct method or not. It was
necessary to use the techniques of Performance Appraisal should be marked in
these segment. The Performance Appraisal mostly done in a company of BSPHCL
organization. The study of employee Appraisal system insight the behavior relating
to the organization.

The first section of my report deals with a detailed company profile. It includes the
company’s history: its activities and operations, organizational structure, etc. this
section attempts to give detailed information about the company and the nature of
its functioning.

The second section deals with performance appraisal. In this section, a brief
conceptual explanation to performance appraisal is given. It contains the definition,
process and significance of performance appraisal.

In the third section of my report, I have conducted a research study to evaluate the
process of performance appraisal at BSPHCL. This section also contains my
findings, conclusions, suggestions and feedback.

The fourth and final section of this report consists of extra information that I
related to the main contents of the report. These annexure includes the
Questionnaire on the basis of which the primary data was collected and research
study was conducted.
 CHAPTER-1

INTRODUCTION

1.1) INTRODUCTION TO THE TOPIC

1.2) OBJECTIVE OF THE STUDY

1.3) HYPOTHESIS OF THE STUDY

1.4) METHODOLOGY OF THE STUDY

1.5) LIMITATIONS OF STUDY

1.1 INTRODUCTION TO THE TOPIC

Every organization select and place the employee on their respective job because

organization had to achieve some goals and the degree of success that individuals

employees have in reaching the individual goals in important in determining

organizational effectiveness. Thus, it is essential for the managers to conduct

performance appraisal to see how effective the employees have been effective on

the job.

Performance appraisal represents one of the most complex areas facing today’s
managers when it comes to managing their employees. Many studies have
demonstrated an unusually large impact of the performance Increment and the
level of Motivation of workers, while the level of Motivation has an impact on
productivity and hence, also on performance of business organizations.
Unfortunately, in our region performance appraisal has not still received the
proper attention from neither scholars nor managers of various businesses.
Introduction To The Study:

A recent report excerpt published in TIMES ASCENT, on 19 Feb 2014 about

research of TECHNOPAK’S VOCATIONAL EDUCATION & TRAINING (V.E.T)
Outlook 2014, discovers that India ranks among the lowest in terms of
productivity, within the Asian cohort. In this global context Indian Productivity is
low and this has relationship with employees’ Job commitment, Motivation and
Job Satisfaction.

Hence, Performance Appraisal is an important to BSPHCL, in one important power

holding company, would certain offer the current representation of performance
appraisal of employees in Indian Business Set up. We found it very important and
relevant to work to know the performance level of employees, with the purpose
to understand the factors of appraisal.

Although the impact of performance appraisal is traverse Performance,

Productivity, Work Efficiency, Profitability and contribution to Nation Growth, yet
the research is limited to discover only the appraisal Level of Employees in
BSPHCL.

To conduct this empirical study we developed questionnaire on this basis of

methods of performance appraisal are as follows:
 1. 360 method
2. M.B.O
3. Cost Accounting
4. Confidential

The main aim of our study is to appraise that whether the performance appraisal
of an employee is successful in Indian context or not. If not then it is important to
provide a better system. For this purpose I critically examined the performance
appraisal activities of manager in BSPHCL, and its impact on the employees who
are working in the organization and we have to observe the performance
appraisal so that some suggestion and finding can be analyzed.

To carry out the study at BSPHCL, we framed the following objectives

1. Identification of the technique of performance appraisal applied and followed
in Bajaj.
2. Employee (Manager) attitude towards the present appraisal system.
3. Review of the current appraisal system in order to
i. Enhance Productivity
ii. Attain Global Standards
iii. Create Motivation
iv. Career Growth

E.B. Flippo –“Performance Appraisal is the systematic, periodic and an impartial

rating on an employee’s excellence in matter pertaining to his present job and to

his potentialities for a better job”.

Dale Yodder – “Performance appraisal includes all format procedures used to

evaluate personalities and contributions and potentials of groups members in a

working organization. It is a continuous process to secure information necessary

for making correct and objective decisions on employees”.
The element of performance appraisal follows a set patterns i.e. it begins with the

established of “performance standards”. At the time of designing a job and

formulating a job description Performance standards are usually developed for the

positions.

Human Resources refers to the individuals and support systems within an

organization responsible for personnel hiring and firing, applicant tracking, skills

development, training, benefits administration, and compliance with government

regulations.

1.2 OBJECTIVES OF THE STUDY

 To study the effectiveness of performance appraisal in the BSPHCL
Employees.

 To get an insight in the procedure of the performance appraisal in the

BSPHCL employees.

 How can organizations use performance appraisal as an effective tool to

achieve organizational effectiveness and efficiency.

 To suggest alternatives for achieving the performance management

objectives and fill the identified gaps in the existing processes.

 To understand the existing system and process of Performance Appraisal

system at BSPHCL, Patna.

1.3 HYPOTHESIS OF THE STUDY

A hypothesis is a tentative statement that proposes a possible explanation to some

phenomenon or event. A useful hypothesis is a testable statement which may

include a prediction that you make for the outcome of your proposed research. The

hypothetical premise of my study rotates around the central theme that there is

always a Performance appraisal and an understanding between different levels of

HR system, but what matters in the actual intensity of the employment condition in

terms of efficiency and effectiveness which is being experienced by the H R

Department. The total project has been designed and created on this central line

with special reference to the Performance Appraisal System at BSPHCL in Patna.

1.4 METHODOLOGY OF THE STUDY

Methods of Data collection:

 Primary data

 Secondary data

Primary Data
Looking into the objectives and information needed, I have chosen following two
methods as per the response of the subject:-

 Schedules

 Personal Interview.

Scheduler Method
Schedules (Performa containing a set of questions) will be filled in by the

respondents.

Personal Interview Method

To take personal interview wherever it will be essential. The strategy will be

adopted to avoid the biased information and to spill out the required data from the

respondent.

Secondary Data
The Secondary data will be mainly collected from different books, magazines,

Journals, company’s Literature, Newspapers, Internet and from the company

personnel.

Sample Size: 50 employees

Types of research
The project will be based on Descriptive Research type.

Sampling Technique
Sampling techniques can be broadly classified in to two types:

 Probability Sampling (here the every item in the universe have the equal
chance of inclusion in the sample)

 Non Probability Sampling (Here the items in the sample are deliberately

selected by the researcher.

This project will be based on the non-probability, purposive, quota sampling.

Tools for analysis

 Bar chart

 Pie-chart
1.5 LIMITATIONS OF THE STUDY

1. All the secondary data are required were not available.

2. Shortage of time factor was one of the biggest constraints.

3. More stress was faced during collection of primary data through

questionnaires and also to collect secondary data from the organization in

terms of organizational profile, product and price profile.

4. All the observation and recommendation will be made on the feedback

obtained from survey.

 CHAPTER -2

ORGANIZATION PROFILE
BRIEF HISTORY OF BSPHCL

2.1) ORIGIN OF BSPHCL

2.2) DUTIES OF BSPHCL

2.3) DUTIES OF BSPTCL

2.4) DUTIES OF BSPGCL

2.5) DUTIES OF SBPDCL

2.6 DUTIES OF NBPDCL

BRIEF HISTORY OF ERSTWHILE BIHAR STATE ELECTRICITY
BOARD NOW BSPHCL

2.1 ORIGIN OF ERSTWHILE BSEB

The pre-independence period was faced by shortage of industrial,

agricultural and economic development in the country. Electricity was one
of the most important factors of all-round development in agricultural,
industrial and commercial sectors. As pre-independence era did not rove
adequate contribution for generation and distribution of electrical energy, the
Government of India took a policy decision to empower it functional
autonomy and commercial viability.

As too much Government control proved to be barring for nipped decision

making and consequent development, the State Electricity Board was to be
established on quasi Government basis. So, Government of India passed a
bill named the Electricity Supply Act, 1948 to frame law governing
equitable distribution of electricity for agricultural as well as industrial
development.

This bill provided an opportunity to various State Governments to make

laws for rapid development of generation and distribution of electricity in
their respective states. As a result, the Government of Bihar Electricity
Board of Patna came into effect from 1st April, 1949. Thus, the Bihar State
Electricity is a statutory organization. Under Section18 of Electricity Supply
Act of 1948 targeted Bihar State Electricity Board with the general duty of
promoting coordinate development of generation and distribution of
electricity within the state in most efficient and economic manner .
 Unbundling of BSEB

ORIGIN OF BSPHCL
Pursuance to the provisions of Electricity Act 2003, for re organization of
Bihar State Electricity Board, following five companies have been
incorporated under the Companies Act, 1956 vide State Govt. resolution no.
999 dated 06.03.2012: -
Bihar State Power (Holding) Company Ltd., Patna – A controlling company
which will hold equity capital of the other four subsidiary companies and
will act as a controlling company for the subsidiary companies.
 Bihar State Power Transmission Company Ltd., Patna – Transmission
Company
 Bihar State Power Generation Company Ltd., Patna – Generation Company
 South Bihar Power Distribution Company Ltd., Patna – Distribution
Company for South Bihar.
  North Bihar Power Distribution Company Ltd., Patna – Distribution
Company for North Bihar

2.2 DUTIES OF BSPHCL

 The duties of the Company have been defined in Section 18 of the

Electricity Supply Act, 1948. It has been charged with the responsibility of
promoting a coordinated development of generation, supply and distribution
of electricity in the State of Bihar on an efficient and economic basis of
management.
 Though BSPHCL deals in only one product, i.e., electrical power, its
significance and utility value is enormous for the State. Almost all aspects of
modern life-style are dependent on it in one way or another.

2.3 DUTIES OF BSPTCL

The duties of Bihar State Power Transmission Company Limited are to

build, maintain and operate an efficient, coordinated and economical inter-State
transmission system or intra-State transmission and to comply with the directions
of the Regional Load Dispatch Centre and the State Load Dispatch Centre.

2.4 DUTIES OF BSPGCL

“Bihar State Power Generation Company Limited” means the generating company
which possesses the Generating Undertaking of the Board.

2.5 DUTIES OF SBPDCL

South Bihar Power Distribution Company Ltd (SBPDCL) has been given the status
of a Distribution Licensee as per Section 14 of the Electricity Supply Act 2003 and
engaged primarily in the business of distribution of Electricity.

2.6 DUTIES OF NBPDCL

The Company has been given the status of a Distribution licensee as per Section14
of the Electricity Act 2003. The Company is engaged primarily in the business of
distribution of electricity. It has been vested with the distribution assets, interest in
property, rights and liabilities of the erstwhile BSEB necessary for the business of
distribution in its area of distribution comprising of all 21 districts of North Bihar.

ADMINISTRATIVE SET-UP OF BSPHCL &ITS SUBSIDIARY

BSPHCL:

In order to ensure that its responsibilities are discharged effectively and efficiently,
the Company has engaged nearly 1,700 officer and 14,850 staffs on various posts
to generate its own power and to maintain proper distribution system. It arranges to
supply the electricity properly to the consumers and maintain their equipment.

As on today, the installed generating capacity of BSPHCL in terms of its Thermal

and Hydro-Electrical plants exceeds 559.2 MW.

The Company has its full-fledged Accounts and Audit Department for proper keep-
up of its financial transaction as also to ensure efficient financial management on
the commercial line.

The Company has also its personnel wing to safeguard the interest of all its
employees. The bio-data and service records of the employee have been
computerized at its Headquarters.
ADMINISTRATIVE SET-UP

BIHAR STATE POWER (HOLDING) COMPANY LIMITED

BSPTCL:

BSPTCL operates a transmission network of 6182 Kms. of 132 K.V. Lines & 1663
Kms. of 220 K.V. lines & 75 Kms. of 400 K.V. Line as well as 97 Nos. of
operational EHV sub- stations with 7360 MVA Transformation Capacity.

Besides continual technical up-gradation, the company lays emphasis on imbibing

required skills in its people and therefore it has invested in creating training
infrastructure. It has recently established a "Power Training Centre" at Gaurichak,
Patna where Employees/Students are trained on various power system protection
and equipment testing.

The day-to-day affairs of the company are managed by the Managing Director
assisted by Director (Project) and by whole time Chief-Engineers both at HQ and
field levels. They are in turn assisted by a team of dedicated and experienced
professionals/Engineers in various fields.
BIHAR STATE POWER TRANSMISSION COMPANY LIMITED

Managing
Director

Board of
Directors

Director Energy Secretary

Director Director Director Energy Dept.,
Finance and
Administration Transmission Generation Bihar
Revenue

BSPGCL:

Power Generation in Bihar is primarily fossil fuel based. The state has several
plans for power generation through Bihar State Power Generating Company.

Bihar grid, as on date, is totally dependent on central supply. Earlier Katihar,

Pirpainti and Nabinagar were identified for installation of coal based Power
Projects in the State of Bihar. Subsequently, a Special Purpose Vehicle (SPV) in
the name of “Bihar Power Infrastructure Company Pvt. Ltd.” has been
incorporated to carry out the development activities and further carry out bid
process management. Bihar state is also trying for a nuclear power station.
Power system in Bihar is predominant by thermal power generation and the
contribution of hydro power is only 10%. Bihar has only 491.1 MW of installed
capacity, of which 440 MW is thermal and remaining 51.1 MW is hydel.

Separation of Jharkhand from Bihar left the erstwhile Board with only three Power
Generation Plants. Details of which are as follows:

(a) Barauni Thermal Power Station, Barauni (BTPS)

(b) Muzaffarpur Thermal Power Station (MTPS)

(c) Koshi Hydel Power Station (KHPS)

BIHAR STATE POWER GENERATION COMPANY LIMITED

Managing
Director

Board of
Directors

Director Energy Secretary

Director Director Director Energy Dept.,
Finance and
Administration Transmission Generation Bihar
Revenue
SBPDCL:

South Bihar Power Distribution Company Ltd (SBPDCL) has been given the status
of a Distribution Licensee as per Section 14 of the Electricity Act 2003 and
engaged primarily in the business of distribution of Electricity and is serving more
than 18 lacs consumers in 17 districts of South Bihar.

Presently, we are providing uninterrupted power supply in PESU, Area, Patna i.e.
Capital of Bihar and also providing 18-20 Hrs assured power supply in the entire17
district HQ of South Bihar. It also gives their consumers the assurance for
replacement of defective transformer in the urban areas in 24 hrs & in rural areas in
72 hrs.
 ADMINISTRATIVE SET-UP

SOUTH BIHAR POWER DISTRIBUTION COMPANY LIMITED

NBPDCL:

NBPDCL is a company registered under the provisions of Companies Act 1956

and is a fully owned subsidiary Company of BSPHCL.

NBPDCL provides power in 21 districts of North Bihar namely, 1. West

Champaran, 2. East Champaran, 3. Sitamadhi, 4. Sheohar, 5. Muzaffarpur, 6.
Vaishali, 7. Saran, 8. Siwan, 9. Gopalgunj, 10. Mahubani, 11. Darbhanaga, 12.
Samastipur, 13. Begusarai, 14. Khagaria, 15. Saharsa, 16. Supaul, 17. Medhepura,
18. Araria, 19. Katihar, 20. Purnea and 21. Kishangunj.
ADMINISTRATIVE SET-UP

NORTH BIHAR POWER DISTRIBUTION COMPANY LIMITED

ORGANISATION PERCEPTION OF THE ENVIRONMENT

The chapter Organization Perception of the Environment contains the survey report
of the employee satisfaction level. It was found that most of the workers were
while working with the organization. They were extremely satisfied regarding the
working environment and inter-departmental communication.

SURVEY REPORT

EMPLOYEE SATISFACTION SURVEY

V 4
VERY SATISFIED 45.08%
S 3
SO & SO 38.46%
D 7
DON’T KNOW 7.37%
W 6
WANT CHANGES 6.80%
V 2
VERY UNSATISFIED 2.26%
T 9
TOTAL 99.97

CONCLUSION
To sum up, according to modern management techniques, optimum production can
be achieved by excellence in various field of management. HR is important part of
this organization. The BSPHCL is a technical organization and its scope of work is
generation of power/ transmission of power and supply of power. It is labor
intensive organization. It is the imperative for the company to have right person for
the job. With this objective at present the BSPHCL and its subsidiaries company
have more than ten thousand employees on its roll. In view of the large manpower
force, it is important for the company to have well- defined and effective human
resource policy for its employees. HR management plays a vital role in any
organization for its development. Excellence in HR management can be achieved
by recruiting the right type of person, their training before employment, periodical
training for enhancing their skills from time to time to keep them updated with
changing technology and environment, payment of adequate salary and other
useful benefits.

In BSPHCL, the HR policies are reviewed from time to time for providing better
facilities to its employees.
 CHAPTER-3

PERFORMANCE APPRAISAL-THEORITICAL

ASPECTS
3.1 PERFORMANCE APPRAISAL, AIMS & OBJECTIVES
3.2 PERFORMANCE APPRAISAL METHODS

3.3 PERFORMANCE APPRAISAL PROCESS & ELEMENTS

3.4 PROMOTION SYSTEMS

3.1 PERFORMANCE APPRAISAL

Performance Appraisal is the systematic, periodic and an impartial rating on an

employee’s excellence in matter pertaining to his present job and to his potentialities

for a better job”.

According to Dale Yodder – “Performance appraisal includes all format procedures

used to evaluate personalities and contributions and potentials of groups members in

a working organization. It is a continuous process to secure information necessary for

making correct and objective decisions on employees”.

Performance appraisals should focus on three objectives: performance, not

personalities; valid, concrete, relevant issues, rather than subjective emotions and

feelings; reaching agreement on what the employee is going to improve in his

performance and what you are going to do (Mc Kirchy, 1998). Both the supervisor
and employee should recognize that a strong relationship exists between training and

performance evaluation (Barr, 1993). Each employee should be allowed to

participate in periodic sessions to review performance and clarify expectations. Both

the supervisor and the employee should recognize these sessions as constructive

occasions for two-way communication. Sessions should be scheduled ahead of time

in a comfortable setting and should include opportunities for self-assessment as well

as supervisor feedback. These sessions will be particularly important for new

employees who will benefit from early identification of performance problems.

A performance appraisal, employee appraisal, performance review, or (career)

development discussion is a method by which the job performance of an employee

is evaluated (generally in terms of quality, quantity, cost, and time) typically by the

corresponding manager or supervisor. A performance appraisal is a part of guiding

and managing career development. It is the process of obtaining, analyzing, and

recording information about the relative worth of an employee to the

organization. Performance appraisal is an analysis of an employee's recent

successes and failures, personal strengths and weaknesses, and suitability for

promotion or further training. It is also the judgment of an employee's

performance in a job based on considerations other than productivity alone. The

history of performance appraisal is quite brief. Its roots in the early 20th century
can be traced to Taylor's pioneering Time and Motion studies. But this is not very

helpful, for the same may be said about almost everything in the field of modern

human resources management.

MEANING OF PERFORMANCE APPRAISAL

It is concern with determining the performances among the employees working in
the organization. The appraisal is done by individual immediate superior. Thus it is
continuous and scientific process of examination of the strength and weakness of
an employee in terms of his job. Everyone in the organization who rates other is
also rated by his superior. Performance appraisal determines who shall receive
merit increase on their improvement, determines training needs, determines
promotion abilities, and identifies those who should be transferred.
DEFINITION OF PERFORMANCE APPRAISAL

On the subject many author have defined performance appraisal according to their
view. Out of them some of the important definition has been discussed here under:-

According to Beach, “Performance Appraisal is the systematic evaluation of the

individual with regard to his or her performance on the job and his potential for
development”.

According to Flippo, “Performance Appraisal is the systematic, periodic and

impartial rating of an employee’s excellence in matter pertaining to his present job
and his potential for a better job”.

According to Dole Yoder, “Performance Appraisal refers to all formal procedures

used in working organizations to evaluate personalities and contributions and
potential of group members”.

According to Heyel, “Performance Appraisal is the process of evaluating the

performance and qualifications of the employees in terms of 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 the group as distinguished
from actions affecting all member equally”

CHARACTERISTICS OF AN APPRAISAL SYSTEM

Performance appraisal cannot be implemented successfully unless it is accepted by

all concerned. There should be a common and clear understanding of the
distinction between evaluation and appraisal. As Patten (1982) argues, evaluation
aims at 'objective' measurement, while appraisal includes both objective and
subjective assessment of how well an employee has performed during the period
under review. Thus performance appraisal aims at 'feedback, development and
assessment.' The process of performance appraisal should concentrate on the job of
an employee, the environment of the organization, and the employee him- or
herself. These three factors are inter-related and inter-dependent. Therefore, in
order to be effective, the appraisal system should be individualized, subjective,
qualitative and oriented towards problem-solving. It should be based on clearly
specified and measurable standards and indicators of performance. Since what is
being appraised is performance and not personality, personality traits which are not
relevant to job performance should be excluded from the appraisal framework.

Some of the important considerations in designing a performance appraisal system

are:

Goal The job description and the performance goals should be structured,
mutually decided and accepted by both management and employees.

Reliable and consistent Appraisal should include both objective and subjective
ratings to produce reliable and consistent measurement of performance.

Practical and simple format The appraisal format should be practical, simple
and aim at fulfilling its basic functions. Long and complicated formats are time
consuming, difficult to understand, and do not elicit much useful information.

Regular and routine While an appraisal system is expected to be formal in a

structured manner, informal contacts and interactions can also be used for
providing feedback to employees.

Participatory and open An effective appraisal system should necessarily

involve the employee's participation, usually through an appraisal interview with
the supervisor, for feedback and future planning. During this interview, past
performance should be discussed frankly and future goals established. A strategy
for accomplishing these goals as well as for improving future performance should
be evolved jointly by the supervisor and the employee being appraised. Such
participation imparts a feeling of involvement and creates a sense of belonging.

Rewards Rewards - both positive and negative - should be part of the

performance appraisal system. Otherwise, the process lacks impact.

Feedback should be timely Unless feedback is timely, it loses its utility and
may have only limited influence on performance.

Impersonal feedback Feedback must be impersonal if it is to have the desired

effect. Personal feedback is usually rejected with contempt, and eventually de-
motivates the employee.

Feedback must be noticeable The staff member being appraised must be made
aware of the information used in the appraisal process. An open appraisal process
creates credibility.

Relevance and responsiveness Planning and appraisal of performance and

consequent rewards or punishments should be oriented towards the objectives of
the program in which the employee has been assigned a role. For example, if the
objectives of a program are directed towards a particular client group, then the
appraisal system has to be designed with that orientation.

Commitment Responsibility for the appraisal system should be located at a

senior level in the organization so as to ensure commitment and involvement
throughout the management hierarchy.
AIMS OF PERFORMANCE APPRAISAL

Generally, the aims of a performance appraisal are to:

 Give employees feedback on performance

 Identify employee training needs.

 Document criteria used to allocate organizational rewards.

 Form a basis for personnel decisions: salary increases, promotions,

disciplinary actions, bonuses, etc.

 Provide the opportunity for organizational diagnosis and development.

 Facilitate communication between employee and employer.

 Validate selection techniques and human resource policies to meet federal

Equal Employment Opportunity requirements.

ADVANTAGES:
 Provide a record of performance over a period of time.

 Can be motivational with the support of a good reward

and compensation.

 Provide an opportunity for a manager to melt & discuss performance.

 Provide the employee with feedback about their performance.

 Provide an opportunity for an employee to discuss issues & to clarify

expectations
DISADVANTAGES:
 If not done appropriately, can be a negative experience.

 Very time consuming, especially for a manager.

 Subject to rates errors & biases.

 If not done right can be a complete waste of time.

 Can be stressful for all involved.

OBJECTIVES:
 Concrete & tangible particulars about their work.

 Assessment of performance.

 Measuring the efficiency of organization.

 Personal development.
 Work satisfaction.

 Involvement in the organization.

 Mutual goals of the employees & the organization.

 Growth & development.

 Increase harmony & enhance effectives.

 To judge the gap between the actual and the desired performance.

 To help the management in exercising organizational control.

 To reduce the grievances of the employees.

 3.2 APPRAISAL METHODS

A common approach to assessing performance is to use a numerical or scalar

rating system whereby managers are asked to score an individual against a number

of objectives/attributes. In some companies, employees receive assessments from

their manager, peers, subordinates, and customers, while also performing a self

assessment.
TRADITIONAL METHODS

1. ESSAY APPRAISAL METHOD:

The traditional form of appraisal also known as “FREE FORM METHOD”

involves a description of the performance of an employee by its superior. In its

simplest form, this technique asks the rater to write a paragraph or more covering

an individual’s strengths, weaknesses, potential, and so on. In most selection

situations, particularly those involving professional, sales, or managerial positions,

essay appraisals from former employers, teachers, or associates carry significant

weight.

2. STRAIGHT RANKING METHOD:

It is the oldest & simplest method in which each worker is compare with the other
in the work group & comparative ranking of the worker is main.

3. PAIRED COMPARISON METHOD:

A Performance Appraisal that measures the relative performance of employees in a
group. This is a method of performance evaluation that results in a rank ordering of
employees to come up with a best employee. Here subordinates to be rated are
listed and the names of those not well enough to rank are crossed. Then on a form,
the employee who is highest on the characteristics being measured and the one
who is the lowest are indicated. Then choose the next highest and the next lowest,
alternating between highest and lowest until all the employees to be rated have
been ranked.
 4. CRITICAL INCIDENT METHOD:
A performance appraisal in which the supervisor keeps a record of
incidents that show positive and negative ways the employee has acted. The
supervisor uses this record to access the employee’s performance. Hence,
critical incident method is keeping a record of uncommonly good or
undesirable employee’s work behavior and renewing it with standard.

5. FIELD REVIEW METHOD:

In this method a senior member of the HR department or a training officer

discusses and interviews the supervisors to evaluate and rate their respective

subordinates that is, a member of the personnel or central administrative staff

meets with small groups of raters from each supervisory unit and goes over each

employee’s rating with them to (a) identify areas of inter-rater disagreement, (b)

help the group arrive at a consensus, and (c) determine that each rater conceives

the standards similarly.

6. CHECKLIST METHOD:
The later is given a checklist of the descriptions of the behaviour of the

employees on the job. The checklist contains a list of statements on the basis of

which the later describes the on the job performance of the employees.

7. GRAPHIC RATING SCALES METHOD:

 In this method an employee’s quality & quantity of work is assessed in a

graphic scale indicating different degrees of a particular trait. This technique may

not yield the depth of an essay appraisal, but it is more consistent and reliable.

Typically a graphic scale assesses a person on the quality and quantity of his work

(is he outstanding above average, average, or unsatisfactory?) and on variety of

factors that vary with the job but usually include personal traits like reliability and

cooperation. It may also include specific performance items like oral and written

communication.

8. FORCED CHOICE APPROACH METHOD:

Like the field review, this technique was developed to reduce bias and establish
objective standards of comparison between individuals, but it does not involve the
intervention of a third party. The appraiser with sets of statements describing
employee behaviour must choose which statement is most characteristic of the
employee and which is least characteristic.

MODERN METHODS

1. MANAGEMENT BY OBJECTIVES METHOD:

This method propounded by “Peter F Drucker”. In this method Performance is

rated by the achievement of objective, stated by the management. Super Goals,
Organizational Goals are declared and individual goals are declared and individual
goals are identified.
In M.B.O, organizational goals are identified Standard Performance is established,
Actual is measured, compared and feedback is shared with employees. Corrective
measures are finally taken as per the requirements.

STEPS OF MANAGEMENT BY OBJECTIVE

1. Goal Setting – Goals are set for each individual. The superior and
subordinates jointly establish these objectives.
2. Performance Standard- Standard is set for the employees as per time limit.
When employees start performing they came to know what is to be done,
what has been done and what remains to be done. They understand their
targets clearly.
3. Measure Actual Value- Actual achieved target is measured to understand
performance.
4. Comparison- The actual performance is compared with the target. This
enables find out problem and determine straining needs.
5. Feedback- If the actual performance deviates from the standards, the
corrective measures are initiated. Periodic reviews are conducted in a
constructive rather than punitive manner. Feedback is shared and
counselling, training, transfer, promotion etc take place as required.

2. 360 DEGREE APPRAISAL METHOD:

This multi-source feedback method provides a comprehensive perspective of
employee performance by utilizing feedback from the full circle of people with
whom the employee interact supervisors, subordinates & co-workers. This method
was first developed and formally used by General Company of U.S.A in 1992.
This is feedback based method which is used to ascertain training and development
needs rather than pay increase.
 360 appraisals pool feedback from a department's internal and external
customers to ensure a broader, more accurate perspective of an employee's
performance.

Hence, 360-degree performance appraisal is an attempt to answer the

question: "How can a supervisor evaluate an employee he or she sees only a few
hours each week?"

3. ASSESSMENT CENTRES METHOD:

This technique is used to predict future performance of employees were they to
be promoted. The individual whose potential is to be assessed has to work on
individual as well as group promoted. This method was introduced in 1930 in
Germany to appraise army to business arena in 1960. In India it is a recent
origin. An assessment centre is a central location where manager supported by
psychologists and H.R specialist for 2-3 days, by involving them in various
simulated situations.

Process of Assessment Centre Method

1. Simulation Participated by managers at one central place
2. Continuous Observation by senior managers, psychologist and H.R
specialists for 2-3 days
3. Assesses are asked to participate in Basket exercises , work groups ,
simulations and role playing which are essential for successful performance
on job
4. Assesses behavior are recorded by raters and they meet together to discuss
their collected data and observation
5. On the basis of observation assessment are made them
6. At the end of the process feedback in terms of strengths and weakness is also
provided to the assesser.
4. BEHAVIOURALLY ANCHORED RATING SCALES METHOD:
This is a relatively new technique. It consists of sets of behavioural

statements describing good or bad performance with respect to important qualities.

These qualities may refer to inter-personal relationships planning and organizing

abilities, adaptability and reliability.

5. HUMAN RESOURCE ACCOUNTING METHOD:

Human Resource Accounting is the process of identifying & measuring

data about Human Resource & communicating this information to the interested

parties.
3.3 PERFORMANCE APPRAISAL PROCESS

1. ESTABLISHING PERFORMANCE STANDARDS:

The first step in the Process of Performance Appraisal is the setting up of

the standards which will be used to as the base to compare the actual

performance of the employees. This step requires setting the criteria to

judge the performance of the employees as successful or unsuccessful and

the degrees of their contribution to the organizational goals and objectives.

The standards set should be clear, easily understandable and in measurable

terms.

2. COMMUNICATING THE STANDARDS:

Once set, it is the responsibility of the management to communicate the standards

to all the employees of the organization. The employees should be informed and the

standards should be clearly explained to them. This will help them to understand

their roles and to know what exactly is expected from them.

3. MEASURING THE ACTUAL PERFORMANCE:
The most difficult part of the Performance appraisal process is measuring the

actual performance of the employees that is the work done by the employees

during the specified period of time. It is a continuous process which involves

monitoring the performance throughout the year. This stage requires the careful

selection of the appropriate techniques of measurement, taking care that personal

bias does not affect the outcome of the process and providing assistance rather than

interfering in an employees work.

4. COMPARING THE ACTUAL WITH THE DESIRED PERFORMANCE:

The actual performance is compared with the desired or the standard performance.
The comparison tells the deviations in the performance of the employees from the

standards set.

5. DISCUSSING RESULTS:
The Result of the Appraisal is communicated and discussed with the employees

on one-to-one basis. The focus of this discussion is on communication and

listening. The results, the problems and the possible solutions are discussed with

the aim of problem solving and reaching consensus.

6. DECISION MAKING:
The last step of the process is to take decisions which can be taken either to

improve the performance of the employees, take the required corrective actions, or

the related HR decisions like rewards, promotions, demotions, transfers etc

PRE-APPRASIAL STEPS

The performance evaluation can be made for variety of reasons counseling,

promotions, salary increases, administration or combination of these. It becomes
very necessary to begin by stating the objectives of evaluation programs very
clearly and precisely. The personal appraisal system should address the question
who, what, how of performance appraisal.

These questions are the components of these appraisal systems which are
discussed below individually.

“WHO “OF THE APPRAISAL OR ‘’WHO’’ IS TO RATE.

The immediate superior, the head of the department or any other can rate the
performance of an individual. In addition to this, sum organizations follow the
system of self appraisal and /or appraisal by peers. A group, consisting of his
senior, peers and subordinates, can do appraisal, whoever is rating; he should be
trained and impartial. In most of the organizations the ratings is done by his
immediate superior who is considered the best person to understand his
subordinates strengths and weaknesses. Now a day some organizations are
following the method of self-appraisal.

THE “WHAT”OF APPRAISAL It is considered with

 Creating and maintaining a satisfactory level of performance of employees in

their present job.
 Highlighting employee’s needs and opportunities of for personal growth and
development.
 Aiding in decision making for promotions, transfers, layoff and discharges.
 Promoting understanding between supervisors and his subordinates.
 Providing a useful criterion for determining the validity of selections and
training methods for attracting individuals of higher caliber to the organization.

THE ‘WHEN’ OF APPRAISAL

The ‘when’ answers the query the frequency of appraisal? The informal
counseling should occur continuously but the manager should discuss an
employee’s work as soon as he gets an opportunity to provide positive
reinforcement and use poor work as basis of training. The time and period of
appraisal differs according to the need and nature of the organization.

THE ‘WHERE’ OF APPRAISAL

The where indicates the location where employee should be evaluated? It is

usually done at work place or office of the supervisor.

THE ‘HOW’ OF APPRAISAL

Under this, the organization must decide what different kinds of methods are

available and which of these may be used for performance appraisal. On the basis

of comparative advantages and disadvantages, the nature and philosophy of

management and the needs of an organization; the method of appraisal is decided

 ELEMENTS OF PERFORMANCE APPRAISAL

The element of performance appraisal follows a set patterns i.e. it begins with the

established of “performance standards”. At the time of designing a job and

formulating a job description Performance standards are usually developed for the

positions.

Establishing performance standard

Communicate performance expectation to employees

Measure actual performance

Compare actual performance with standards

Discuss the appraisal with the employees

If necessary initiate corrective action

 PROCESS OF PERFORMANCE APPRAISAL AT

BSPHCL, Patna

Phase-1 Performance planning

Phase- 2 Interim review, Feedback and Coaching

Phase-3 Year End Performance Evaluation

CHAPTER-1

INTRODUCTION
HR POLICIES

HR policies are1.1)
required to ensure that human
INTRODUCTION TO THE resource
TOPICmanagement issues are
dealt with consistently in line with the values of the organization on how people
1.2) OBJECTIVE OF THE STUDY
should be treated, and that legal requirements are met. A policy provides
1.3) HYPOTHESIS OF THE STUDY
continuing guidelines and generalized guidance on how HR issues should be dealt
1.4) METHODOLOGY OF THE STUDY
with to ensure that an appropriate approach is adopted throughout the organization.
1.5) LIMITATIONS OF STUDY
HR policies can be expressed formally as overall statements of the values of the
organization or they can apply to specific areas of people management.
  Employee Voice:

The employee voice policy should spell out the organization’s belief in giving
employees an opportunity to have a say in matters that affect them. It should define
the mechanism for employee voice such as joint consultation and suggestion
schemes.

 Employment:

Employment policies should be concerned with fundamental aspects of the

employment relationship. They should take account of the requirements of relevant
legislation.

 Equal Opportunity:

The equal opportunity policy should spell out the organization’s determination to
give equal opportunity to all, irrespective of sex, race, creed, disability, age or
marital status. The policy should also deal with the extent to which the
organization wants to take ‘affirmative action’ to redress imbalances between the
numbers employed according to sex or race or to differences in the level of
qualification and skill they have achieved.

 Grievances:

The policy on grievances could state that employees have the right to raise their
grievances with their manager, to be accompanied by a representative if they so
wish, and to appeal to a higher level if they feel that their grievance has not been
resolved satisfactorily. The policy should be supported by a grievance procedure.

 Health and Safety:

Health and safety policies cover how the organization intends to provide healthy
and safe places and systems of work.

 New Technology:

A new technology policy statement could state that there will be consultation about
the introduction of new technology and the steps that would be taken by the
organization to minimize the risk of compulsory redundancy or adversely affecting
other terms and conditions or working arrangement.

 Promotion:

A promotion policy could state the organization’s intention to promote from within
whatever this is appropriate as a means of satisfying its requirement for high-
quality staff. The policy could, however, recognize that there will be occasions
when the organization’s present and future needs can only be met by recruitment
from outside. The point could be made that a vigorous organization needs infusions
of fresh blood from time to time if it is not to stagnate. In addition, the policy
might state that employees will be encouraged to apply for internally advertised
jobs and will not be held back from promotion by their managers, however
reluctant the latter may be to lose them. The policy should define the approach the
organization adopts to engaging, promoting and training older employees. It should
emphasize that the only criterion for selection or promotion should be ability to do
the job, and for training, the belief, irrespective of age, that the employee will
benefit.

 Redundancy:

The redundancy policy should state that the aim of the organization is to provide
for employment security. It is the organization’s intention to use its best endeavors
to avoid involuntary redundancy through its redeployment and retraining programs
and by allowing natural wastage to take place. However, if redundancy is
unavoidable, those affected will be given fair and equitable treatment, the
maximum amount of warning and every help that can be provided to obtain
suitable alternative employment. The policy should be supported by a redundancy
procedure.

 Reward:

The reward policy could cover such matters as:

 Providing an equitable pay system;

 Equal pay for work of each value;
 Paying for performance, competence, skill or contribution;
 Sharing in the success of the organization;
 The relationship between levels of pay in the organization and market rates;
 The provision of employee benefits, including flexible benefits if
appropriate;
 The importance attached to non-financial rewards resulting from recognition
accomplishment, autonomy, and the opportunity to develop.

 Sexual Harassment:

The sexual harassment policy should state that:

 Sexual harassment will not be tolerated.

 Employees subjected to sexual harassment will be given advice, support and
counseling as required.
  Every attempt will be made to resolve the problem informally with the
person complained against.
 Assistance will be given to the employees to complain formally if informal
discussion fails.
 A special process will be available for hearing complaints about sexual
harassment. This will provide for employees to bring their complaints to
someone of their own sex if they so wish.
 Complaints will be handled sensitively and with due respect for the rights of
both the complainant and the accused.
 Sexual harassment is regarded as gross industrial misconduct and, if proved,
makes the individual liable for instant dismissal. Less severe penalties may
be reserved for minor cases but there will always be a warning that repetition
will result in dismissal.

 Substance Abuse:

A substance abuse policy could include assurances that:

 Employees identified as having substance abuse problem will be offered

advice and help.
 Any reasonable absence from work necessary to receive treatment will be
granted under the organization’s sickness scheme provided that there is full
cooperation from the employee.
  An opportunity will be given to discuss the matter once it has become
evident or suspected that work performance is being affected by substance-
related problems.
 Employees have the right to be accompanied by a friend or employee
representative in any such discussion.
 Agencies will be recommended to which the employee can go for help if
necessary.
 Employment right will be safeguarded during any reasonable period of
treatment.

 Work- life Balance:

Work- life balance policies define how the organization intends to allow
employees greater flexibility in their working patterns so that they can balance
what they do at work with the responsibilities and interests they have outside work.
The policy will indicate how flexible work practices can be developed and
implemented. It will emphasize that the number of hours worked must not be
treated as a criterion for assessing performance.

HR PROCEDURE

HR Procedures set out the ways in which certain actions concerning people should
be carried out by the management or individual managers. In effect they constitute
a formalized approach to dealing with specific issues arising in the employment
relationship. Procedures are more exacting than policies. They state what must be
done as well as spelling out how to do it.
The main areas where procedures are required are those concerned with handling
disciplinary and capability problems, grievances, and redundancy.

 Disciplinary Procedure:

The procedure should follow the principles set out in the ACAS Code of Practice
namely that:

 Employers and employees should raise and deal with issues promptly and
should not unreasonably delay meetings, decisions, or confirmation of those
decisions.
 Employers and employees should act consistently.
 Employers should carry out any necessary investigations to establish the
facts of the case.
 Employers should inform employees of the basis of the problem, and give
them an opportunity to put their case in response before any decisions are
made.
 Employers should allow employees to be accompanied at any formal
disciplinary meeting.
 Employers should allow an employee to appeal against any formal decision
made.

The procedure may indicate that that a verbal or informal warning will be given to
the employee in the first instance or instances of minor offences. It will state that in
the case of more serious offences or after repeated instances of minor offences, a
formal disciplinary meeting will be held. The individual should be given a written
notice of this meeting, which will give details of the alleged misconduct.
At the meeting the employer should explain the complaint against the employee
and go through the evidence that has been gathered. The employee should be
allowed to set out their case and answer any allegations that have been made. The
employee should also be given a reasonable opportunity to ask questions, present
evidence, call witnesses, and raise points about any information provided by
witnesses. The employee can be accompanied by a fellow worker or a union
representative or official. If it is concluded that misconduct has taken place, the
stages of the procedure are:

 A written formal warning which states the exact nature of the offence and
indicates any future disciplinary action that will be taken if the offence is
repeated within a specified time limit.
 A final written warning if the offence is repeated within the time limit.

Disciplinary action such as suspension, or in serious cases dismissal, can be carried

out if, despite previous warnings, an employee still fails to reach the required
standards in a reasonable period of time. The employee can appeal against this
action.

 Capability Procedure:

Some organizations deal with matters of capability under a disciplinary procedure,

but there is a good case to be made for dealing with poor performance issues
separately, leaving the disciplinary procedure to be invoked for situations such as
poor timekeeping. The main points covered by a capability procedure are
summarized below.

If a manager believes that an employee’s performance is not up to standard, an

informal discussion should be held with the employee to try to establish the reason
and to agree the actions required to improve performance by the employee and/or
the manager.

Should the employee show no (or insufficient) improvement over a defined period
(weeks or months), a formal interview should be arranged between the employee
(together with a representative if so desired). The aims of this interview are to:

 Explain the shortfall between the employee’s performance and the required
standard;
 Identify the cause(s) of the unsatisfactory performance;
 Determine what - if any – remedial treatment (such as training, retraining or
support) can be given;
 Obtain the employee’s commitment to reaching that standard;
 Set a reasonable period for the employee to reach the standard, and agree on
a monitoring system during that period;
 Tell the employee what will happen if that standard is not met.

The outcome of this interview should be recorded in writing, and a copy be given
to the employee. At the end of the review period a further formal interview should
held, at which time:

 If the required improvement has been made, the employee will be told of
this and encouraged to maintain the improvement.
 If some improvement has been made but the standard has not yet been met,
the review period will be extended.
 If there has been no discernible improvement and performance is still well
below an acceptable standard, this will be indicated to the employee, and
consideration will be given to whether there are alternative vacancies which
the employee would be competent to fill. If there are, the employee will be
 given the options of accepting such a vacancy or being considered for
dismissal.
 If such vacancies are available, the employee will be given full details of
them in writing before being required to make a decision.

Employees may appeal against their dismissal.

 Grievance Procedure:

A grievance procedure spells out the policy on handling grievances and the
approach to dealing with them, as in the following example. The main stages
through which a grievance may be raised are as follows:

 The employee raises the matter with his or her immediate team leader or
manager, and may be accompanied by a fellow employee of their own
choice.
 If the employee is not satisfied with the decision, the employee requests a
meeting with a member of management who is more senior than the team
leader or manager who initially heard the grievance.
 If the employee is still not satisfied with the decision, they may appeal to an
appropriate higher authority. The decision made at this meeting is final.
 Redundancy Procedure:

A redundancy procedure aims to meet statutory, ethical and practical

considerations when dealing with this painful process. A procedure typically
includes the following points:

 Review of employees requirements

Management will continuously keep under review possible future developments
which might affect the number of employees required, and will prepare overall
plans for dealing with possible redundancies.

 Measures to avoid redundancy

If the likelihood of redundancy is foreseen, the company will inform the union(s),
explaining the reasons, and in consultation with the union(s) will give
consideration to taking appropriate measures to prevent redundancy or alleviate the
effects of redundancy.

 Consultation on redundancies

If all measures to avoid redundancy fail, the company will consult the union(s) at
the earliest opportunity in order to reach agreement.

 Selection of redundant employees

In the event of impending redundancy, the individuals who might be surplus to

requirements are selected in accordance with agreed principles. The union(s) will
be informed of the numbers affected but not of individual names.

HR POLICIES IN BSPHCL

HR Policies being followed in Bihar State Power Holding Company Limited are as
here under:

 Recruitment Policy :
Bihar State Power Holding Company Limited and its subsidiaries Company
are highly technical and labor intensive company. It requires skilled and
 efficient manpower to ensure Generation, Transmission and Distribution of
Power. Keeping this in view a detailed Recruitment Policy for BSPHCL and
its subsidiaries Company has been formulated called ‘Recruitment
Policy,2013’
The prime objectives of the Recruitment Policy, 2013 are -
i. To plan the man power requirement and induct new human resources
with necessary qualifications, skills, aptitude, merit and suitability in
accordance with the organizational requirements.
ii. To ensure that the companies attract and retain the best of personnel in
various areas of functioning of the organization.
iii. To focus on the placement of employees in jobs for which they are
best fitted to ensure the contribution towards growth of the Company.

 Promotion Policy :

A promotion policy could state the organization’s intention to promote from within
whatever this is appropriate as a means of satisfying its requirement for high-
quality staff. BSPHCL has a well defined promotion policy for its employees. Its
main contents are -

 No employee of the BSPHCL and any of its establishment including the

Electric Supply Area and Generation(BTPS) and Transmission
(Transmission Zones) shall have a right of promotion to a post;
1) Which does not fall in the lines of his promotion?
2) For which he does not possess the minimum qualification.
3) Which is outside the cadre to which he belongs?
4) If he has failed to clear a departmental examination if it is one of the
eligibility criteria for promotion.
 No employee of the BSPHCL shall be promoted from his existing post, if
prima facie charges of corruption, bribery, gross negligence or any other
charges involving lack of integrity, serious lapse of duty and acts of
indiscipline and pending or departmental proceeding if being conducted
against him.
 DCP shall not include in the promotional panel the name of an employee
who has not cleared the departmental examination or proficiency
examination where such an examination has been laid down as a condition
precedent to promotion provided
 Promotion shall be regulated by the following methods:-
1) Promotion on the basis of seniority- cum- fitness to be adjudged by a
Departmental Promotion Committee.
2) Promotion on the principle of selection and suitability viz merit cum
seniority.
3) The detailed procedure lay down by the Company to enable the Cadre
Authorities to promote workmen of various categories in Technical Cadre
against the sanctioned vacant post.
4) The grade to grade line of promotion for the workmen of Supply &
Distribution, Generation and Transmission as classified by the company.
5) The reservation policy in promotion as adopted by the Government of Bihar.
6) The recording annual confidential report in respect of every workman and its
interpretation for the purpose of promotion.
7) The required Kalawadhi (Minimum experience for each post) for promotion
to higher post.

Assured Career Progression Scheme 2010:

 The company has a well defined promotion policy for its employees, but it is
not possible that all its employees get promotion on regular basis. This can
prevent the career progression of the employees. Therefore, in order to
provide its employees at least three career progression in the service period,
the company has formulated a Assured Career Progression Scheme for all its
employees called ‘Assured Career Progression Scheme 2010’ (ACP-
2010)
ACP Scheme is a career progression scheme which assures at least three
career progression for its employees and is effective with effect from
01.01.2009.
Under this scheme officers and workman of the company get benefit of 3 up
gradation of pay in their service period. Power Engineers as well as Civil
Engineers get the benefit of 1st/2nd/3rd up gradation of pay in 8,16,24 years
respectively, while all others viz non-technical officers and workmen get
benefit of 1st/2nd/3rd up gradation of pay in 10,20,30 years.
The conditions for the benefits under ACP,2010 and the up graded pay scale
admissible to the employees of different cadres on 8,16 &24 years
(Engineering Cadre) and 10,20 & 30 years (Workman & Non-Technical
Officers) has been defined in the company resolution no 76 dated 07-05-
2012.

 Training Policy:
The ever changing technologies in the field of power and energy make it
inevitable for the organization to impart training to its employees on regular
basis to enhance their technical knowledge and skill and also to keep them
well acquainted with the requirement of the work. Training also creates
committed and skilled work force. Further, it is also necessary for the
 employees to minimize the risk of compulsory redundancy or adversely
affecting other terms and conditions or working arrangement.
BSPHCL being the power company requires highly skilled and trained work
force. The Company has consistent training programs for its work force to
keep them updated with the technology and also enhance their skills and
efficiency. It also ensures minimum risk of accident in course of discharging
their duties.
 Career Advancement Scheme:
Effective Career Advancement Scheme creates committed, efficient and
energetic workforce for the company. BSPHCL has a sound Career
Advancement Scheme for his employees. Under this scheme, the employees
are imparted training and thereafter on successful probation are appointed on
the higher post. Like unskilled workers/messengers are imparted ITI training
from the recognized ITI. On completion of training, they are allowed to
work on the post which are much higher and carry higher pay &
responsibility such as Switch Board Operator-II /Assistant Operator-II
/Technician-IV/Assistant Patrolman on probation for one year and after
successful completion of probation period they are appointed on the post on
regular basis. Similarly, employees possessing higher educational
qualification are appointed on higher post on the basis of internal
examination.
 Remuneration Policy:
Remuneration policy is the most important factor to motivate employees.
The other policies such as promotion scheme, Training, Career
Advancement Scheme etc come after. BSPHCL is a highly technical
organization and therefore it requires skilled to highly skilled employees.
Comparatively the pay structure of the workman of the company has always
 been on higher side. The company BSPHCL has a very effective wage and
salary administration for its employees. Earlier the wage of the workman
was fixed / revised on the basis of the Wage Board Report. But now days the
pay of the workman is fixed/revised on the basis of the Pay Revision
Committee (PRC) constituted at central level and fitment committee
constituted at company level. In addition to the wages/ pay as fixed,
allowances such as HRA, Transport Allowance & Medical Allowance etc
are also paid to the workman.

 Leave & Holidays :

Under BSEB Certified Standing Orders, the workmen of BSPHCL are
allowed following Leaves and Holidays;
1. Casual Leave- Subject to certain condition as prescribed under the
provision, a workman other than casual workman may be granted casual
leave of absence with pay not exceeding 15 days in the aggregate in a
calendar year.
2. Privilege Leave or annual leave with wages - Every workman other than
casual workman who has worked for a period of 240 days or more during
a calendar year are allowed Leave with Wages for 18 days in the
subsequent calendar year. These leaves are exclusive of all holidays
whether occurring during or at either end of the period of leave. Such
leaves are accumulated up to maximum limit of 300 days.
3. Sick Leave- A workman is granted sick leave with full pay up to 15 days
or 30 days with half pay in one calendar year and is accumulated up to
120 days on full wages and 240 days on half wage.
4. Special Sick Leave- In case of long duration disease such as
T.B./Cancer/Leprosy/Paralysis/ Mental/Heart diseases etc a maximum
 period of one year special sick leave is allowed to all such employees in
addition to sick- leave or any leave due under the provisions of the BSEB
Certified Standing Orders on full wage.
5. Special Disability Leave – In case of disability due to accident in course
of employment, the concerned workman is allowed full wages till his
recovery from the injury or he may not be fit to join his duty.
6. Quarantine Leave – A workman other than a casual workman may be
ordered by the appropriate authority to absent himself from work upon a
maximum of 21 days with full pay and allowances in case of any member
of his family, who is residing with hi, is suffering from an infectious
disease like plague, cholera or small pox and such absence shall be
sanctioned on the certificate of a Medical Officer of the Company or the
State Government. In special circumstances, the period of such
authorized absence may be extended to 30 days by the appropriate
authority.
Holidays: Under the BSEB Certified Standing Orders, a workman other
than a casual workman may have festival holidays not exceeding 16 days
in a year. In addition, following 3 national holidays are allowed to
workman; (1) Independence Day (2) Republic Day (3) Mahatma Gandhi
Jayanti.

 Retirement & Retirement Benefits/Terminal Benefits:

The age superannuation of workman of the company is fixed as 60 years.
After superannuation a workman is entitled for the following retire benefits
–
1. Pension under Bihar Pension Rules.
2. Gratuity under Bihar Pension Rules
 3. General Provident Fund
4. Cash equivalent to unutilized earned leave due on superannuation.
5. Group Saving Scheme under BSEB GSS, 1986.

In case of the death of the workman while in service his legal heirs are
entitled for the above benefits as per the rules.

 Compensation:
If a workman is injured or dies due to accident arising out of and in course
of employment then he or his legal heirs is entitled for compensation under
Workman Compensation Act, 1923 and BSEB Accident Compensation
Scheme, 1988.
 Compassionate Appointment:
If a workman dies while in service then one of his dependent may be given
compassionate appointment. The company has a clear cut policy on the
compassionate appointment.

 Transfer Policy:
There shall be no discrimination in the matter of transfer between a female
workman and a male workman. Further, in order to maintain uniformity,
transparency and consistency in transfer, the company has recently issued a
clear cut guidelines.

MEASURE FOR MAINTAINING DISCIPLINE

There are two types of measures that can be adopted for maintaining discipline in
BSPHCL. The first measure is negative and the second one is positive. Negative
measures are much in process.

Negative measure may be as follows:

 Oral reprimand
 Written reprimand
 Penalty/ Fine
 Demotion
 Sustention
 Discharge

Positive measure may be as follows:

 Inspiring workers for their good performance.

 Encourage them to do well.
 For maintaining peace, industry through discipline the worker must be given
better facilities like shorter hours of work, higher wages, proper interval of
rest, effective redressed procedure, medical allowances, educational
facilities, cooperative, etc.

RIGHT OF MANAGEMENT REGARDING MAINTENANCE OF

ACT OF DISCIPLINE

As stated earlier, it is the primary duty of the management of the organization for
the benefit of the industries, employees and the nation to maintain discipline in the
organization. The management invests capital for industry in partnership of labor
and capital. As the management invest capital, it has the first right to take the
work, as for the procedure prescribed in the various Act. The most important is the
right for maintenance of discipline which is given to the employee under the
provision of Industrial Employment (S.O.) Act, 1946. Besides, certain panel
provision also made in the Factory Act and Payment of Wages Act for maintaining
discipline in an industry.

The right of the management in respect of maintenance of discipline has been

prescribed for maintaining harmonious relationship in the industry to avoid
untoward action. As per the provision of this Act, management enforces the
discipline for safety in life. In case of breach of discipline two offences are mainly
described in the model of the standing order as laid down in the Act:

The first type of misconduct or offences is known as major misconduct while

second type is known as minor misconduct.

Minor offences:

Minor offences include late coming to office, failure to observe safety rules and
instructions, horseplay, neglect of work, drinking while on duty or in premises,
quarrelling while on duty, sleeping on duty, smoking, breach of standing orders,
refusal to accept a charge sheet. Communication explanation is required to be
given for the offences prescribed in standing order.

These are minor offences given in the standing order of Bihar State Power
(Holding) Company Limited, Patna.

Major offences:

Subject to the other provision of this standing order the following act by a
workman shall be deemed to be misconduct for which he shall be liable to
dismissed, discharge and stoppage of promotion for certain period:
 Striking work either singly or in combination or exciting others to strike
work.
 Theft found or dishonesty in connection with BSPHCL property or business.
 Accepting or giving bribes or any illegal gratification whatever.
 Habitual late coming, absence from duty without leave or without sufficient
reason or overstay when on leave without prior authorized permission.
 Habitual drinking.
 Gambling.
 Insubordinate and indiscipline.
 Frequent sickness or habitual negligence in the performance or duty.
 Smoking in office premise where it is prohibited in writing.
 Damaged caused to BSPHCL property willingly or through negligence.
 Acceptance of gift from subordinate employee.
 Conviction in any court for any offence of moral thick aptitude.
 Leaving work without permission.
 Giving false information of his name, age, father’s name, qualification or
previous service, etc. at the time of his employment.
 Habitual breach of rules of the standing orders and repeated act of
misdemeanors.
 Refusal to go on transfer.
 Bidding on the occasion of disposal of BSPHCL property.
 Submission of application for employment elsewhere directly.
 Preaching or inciting people to violence.
 Maligning superior officers.

 Disciplinary action against workman other than casual: The company

has a clear policy of initiating Disciplinary action against workman other
 than casual and inflicting punishment including removal from service. Under
this, no orders of dismissal, stoppage of promotions or withholding of
increment whether accumulative or otherwise, reduction of rank and other
punishment mentioned above shall be made against a workman unless the
prescribed procedure is gone through but the appointing may, in its
discretion, if it considers immediate suspension necessary, suspend a
workman pending enquiry into allegations made against him. However,
workman convicted of an offence involving moral turpitude can be removed
from service only after going through the prescribed procedure of
Departmental Proceeding.

3.4 Promotion Systems

When there are vacancies in an organization, they can be filled up by the

internal or external candidates. Though the organization prefers to fill up the
vacancies by the external candidates through the selection procedure, the
internal candidates may also apply for post and may be tested and selected for
higher level job in the organizational hierarchy at par with external
candidates. Is such upward movement of an employee a promotion? Or it is
purely selection? It is purely a selection. If the organization prefers to fill a
vacancy only by the internal candidates, it assigns that higher level job to the
selected employee from within through promotion tests. Such upward
movement can be said as promotion.

► Definition:-

“Promotion is advancement of an employee to a better job- better in

terms of graters responsibility, more prestige or status, greater skills and
especially increased rate of pay or salary.”
“The upward reassignment of an individual in an organizational hierarchy,
accompanied by increased responsibilities, enhanced status and usually with
increased income though not always so.”
Promotion is the reassignment of a higher level job to an internal employee
with delegation of responsibilities and authority required to perform that
higher job and normally with higher pay. Thus, the main conditions of
promotion are:-
1) Reassignment of higher level job to an employee than what he is
presently performing.
2) The employee will naturally be delegated with greater responsibility and
authority than what he has had earlier.
3) Promotion normally accompanies higher pay.
Promotion may be temporary or permanent depending upon the
organizational needs and employee performance.

► Purpose of promotion:-

Organizations promote the employee with a view to achieve the following

purposes:-
1) To utilize the employee’s skills, knowledge at the appropriate level in the
organizational hierarchy resulting in organizational effectiveness and
employee satisfaction.
2) To develop competent spirit and inculcate the zeal in the employees to
acquired the skills, knowledge etc. required by higher level jobs.
3) To develop competent internal source of employees ready to take up jobs
at higher level in the changing environment.
4) To promote employee’s self development and make them await their
turn of promotions. It reduces labour turnover.
5) To promote a feeling of content with the existing conditions of the
company and a sense of belongingness.
6) To promote interest in training, development programmers and in team
development areas.
7) To build loyalty and to boost morale.
8) To reward committed and loyal employees.
9) To get rid of the problems created by the leader of workers’ unions by
promoting them to the officer’ levels where they are less effective in creating
problems.

Merit as a basis of promotion:-

Merit is taken to denote an individual employee’s skills, knowledge, ability,

efficiency and aptitude as measured from educational, training and past
employment record. The merits of merit system of promotion are:
1) The resources of higher order of an employee can be better utilized at a
higher level. It result in maximum utilization of human resources in an
organization
2) Competent employees are motivated to exert all their resources and
contribute them to the organizational efficiency and effectiveness
3) It works as golden hand-cuffs regarding employee turnover,
4) Further it continuously encourages the employees to acquire new skill,
knowledge etc. for all-round development.
Despite these advantages the merit systems suffer from some demerit. They
are:
1) Measurement or judging of merit is highly difficult.
2) Many people, particularly trade union leaders, distrust the
management’s integrity in judging merit.
3) The techniques of merit measurement are subjective.
4) Merit denotes mostly the past achievement, efficiency but not the future
success. Hence, the purpose of promotion may not be served if merit is taken
as sole criteria for promotion.
Senior as a basis of promotion

Seniority refers to relative length of service in the same job and in the same
organization. The logic behind considering the seniority as a basis of
promotion is that there is a positive correlation between the length of service
in the same job and the amount of knowledge and the level of skill acquired by
an employee in an organization. This system is also based on the custom that
the first in should be given first chance in all benefit and privileges.
► Advantages of seniority as a basis of promotion are:

1) It is relatively easy to measure the length of service and judge the

seniority.
2) There would be full support of the trade unions to this system.
3) Every party trust the management’s action as there is no scope for
favoritism and discrimination and judgment.
4) It gives a sense of certainty of getting promotion to every employee and
of their turn of promotion.
5) Senior employees will have a sense of satisfaction to this system as the
older employees are respected and their inefficiency cannot be pointed out.
6) It minimizes the scope for grievances and conflicts regarding promotion.
7) This system seems to reserve the purpose in the sense that employees
may learn more with increase in the length of service.

► In spite of these merits, this system also suffers from certain limitations. They
are:
1) The assumption that the employees learn more relatively with length of
service is not valid as this assumption has reverse effect. In other words
employees learn up to a certain age and beyond that stage the learning ability
of the cognitive process diminishes.
2) It denominates the young and more competent employees and results in
employee turnover particularly among the dynamic force.
3) It kills the zeal and interest to develop as everybody will be promoted
with or without improvement.
4) Organizational effectiveness may be diminishes through the deceleration
of the human resource effectiveness as the human resource consists of mostly
undynamic and old blood.
5) Judging the seniority though it seems to be in the theoretical sense. it is
highly difficult in practice as the problems like job seniority, company
seniority, zonal/regional seniority, service in different organizations,
experience as apprentice trainee, trainee, researcher, length of service not
only by days but hours and minutes will crop up.
Thus the two main basic of promotion enjoy certain advantages and at the
same time suffer from certain limitations. Hence, a combination of both of
them may be regarded as an effective basis of promotion.
Seniority-cum-merit

Management mostly prefers merit as the basis of promotion as they are

interested in enriching its human resources. But trade union favour seniority
as the sole basis for promotion with a view to satisfy the interests of majority
of their members.
Hence a combination of both seniority and merit can be considered as the
basis for promotion satisfying the management for organizational
effectiveness and employees and trade union for respecting the length of
service. A balance between seniority and merit should be struck and a new
basis is to be developed. There are several ways in striking the balance
between these two basis.viz:-

1) Minimum length of service and merit:-

Under this method all those employees who complete the minimum service,
say five years, are made eligible for promotion and then merit is taken as the
sole criteria for selecting the employee for promotion from the eligible
candidates. Most of the commercial bank in India has been following this
method for promoting the employees from clerk’s position to officer’s
position.
2) Measurements of seniority and merit through a common factor.
3) Minimum merit and seniority:-
In contrast to the earlier methods, minimum score of merit which is necessary
for the acceptable performance on the future job is determined and all the
candidates who secure minimum score are declared as eligible candidates.
Candidates are selected for promotion based on their seniority only from the
eligible candidates.
► Benefit of promotion:-

1) Promotion places the employees in a position where an employee’s skills

and knowledge can be better utilized.
2) It creates and increases the interest of the other employees in the
company as they believe that they will also get their turn.
3) It creates among employees a feeling of content with the existing
conditions of work and employment.
4) It increases interest in acquiring higher qualifications, in training and in
self development with a view to meet the requirement of promotion
5) Promotion improves employee morale and job satisfaction.
6) Ultimately it improves organizational health.
► Problems with promotion:-

Though promotions benefit the employee and the organization, it creates

certain problems. They are disappointment of the candidates, refusal of
promotions etc.
Promotion disappointment some employees:-

Some employees who are not promoted will be disappointed when their
colleagues with similar qualifications and experience are promoted either due
to favoritisms or due to lack of systematic promotion policy. Employee may
develop negative attitude and reduce their contributions to the organization
and prevent organizational and individual advancement.
Some employee refuse promotion:-

There is a general tendency that employee accept promotion. But their are
several incidents where employees refuse promotions. These include
promotion together with transfer to an upward place, promotion that level
where the employee feels that he will be quite incompetent to carry out the
job, delegation of unwanted responsibilities, and when trade union leader feel
that promotion causes damage to their position in trade union.
The other problems associated with the promotion are: some superiors will
not relieve their subordinates who are promoted because of their
indispensability in the present job and inequality in promotional in different
departments, regions and categories of jobs.
Promotion problems can be minimized though a career counseling by the
superiors and by formulating a systematic promotion policy.
► Promotion policy

Every organizational has to specify clearly its policy regarding promotion

based on its corporate policy. The characteristics of a systematic promotion
policy are:
1) It should be considered the sense that policy should be applied uniformly
to all employees irrespective of the background of the persons,
2) It should be fair and impartial. In other words it should not give room
for nepotism, favoritism etc.,
3) Systematic line of promotion channel should be incorporated
4) It should provide equal opportunities fro promotion in all categories of
jobs, departments, and regions of an organization
5) It should insure open policy in the sense that every eligible employee
should be considered for promotion rather than a closed system which
consider only a class of employees
6) It should contain clear cut norms and criteria for judging merit, length
or service, potentiality etc.
7) Appropriate authority should be entrusted with the task of making final
decision
8) Favoritism should not be taken as a basis for promotion
9) It should contain promotional counseling, encouragement, guidance and
follow-up regarding promotional opportunity, job requirement and acquiring
the required skills, knowledge etc. it should also contain reinforcing the future
chances in the mind of rejected candidates and a provision for challenging the
managements decision and action by employee or union within the limits of
promotion policy.
► Types of Promotion
As already noted, a promotion involves an increase in status, responsibilities
and pay. But, in certain cases, only the pay increases, and the other elements
remain stagnant. In other cases, the status only increases without a
corresponding increase in pay or responsibilities. Depending on which
elements increase and which remain stagnant, promotions may be classified
into the following types:
1) Horizontal Promotion:-
This type of promotion involves an increase in responsibilities and pay, and a
change in designation. But the employee concerned does not transgress the job
classification. For example, a lower division clerk is promoted as an upper
division clerk. This type of promotion is referred to as upgrading’ the position
of an employee.
2) Vertical Promotion:-
This type of promotion results in greater responsibility, prestige and pay,
together with a change in the nature of the job. A promotion is vertical when a
canteen employee is promoted to an unskilled job. The concerned employee
naturally transgresses the job classification.
3) Dry Promotions:-
Dry promotions are sometimes given in lieu of increases in remuneration.
Designations are different but no change in responsibilities. The promotee
may be given one or two annual increments.
Performing.

2) The employee will naturally be delegated with greater responsibility and

authority than what he has had earlier.

3) Promotion normally accompanies higher pay.

Promotion may be temporary or permanent depending upon the

organizational needs and employee performance.
 CHAPTER-4

RESEARCH WORK
4.1 DATA ANALYSIS & INTERPRETATIONS

4.2 FINDINGS
4.1 DATA ANALYSIS & INTERPRETATIONS

Q1. Have you worked in any other Company prior to joining this

Organization?

No. of respondents Percentage

Yes 32 64%

No 18 36%

Total 50 100%

64%
70%

60%

50%
36%
40% Series1
30%

20%

10%

0%
Yes No
Interpretation:
In the above graph shows that 32(64%) of employee says worked in any other

company prior to joining in this organization where as only 16(36%) employees

are fresher.

Q2. Were you informed about the Performance Appraisal model, used in the

Organization, during your induction?

No. of respondents Percentage

Yes 35 70%

No 15 30%

Total 50 100%

30%

Yes
No

70%

Interpretation:
In the above graph shows that 35(70%) of employee says yes rest 15(30%)

employees says no.

Q3. How do you find the Performance Appraisal Model in this Organization?

No. of respondents Percentage

Simple 18 36%

Complicated 7 14%

Objective 12 24%

Subjective 5 10%

Efficient 5 10%

Inefficient 3 6%

Total 50 100%
 40% 36%
35%
30%
24%
25%
20%
14%
15% 10% 10% Series1
10% 6%
5%
0%

Interpretation:
In the above graph shows that 16(36%) of employee says simple, 7(14%) says

complicated, 12(24%) says objective, 5(10%) says subjective, 5(10%) says

efficient & rest 3(6%) employee says inefficient.

Q4. In your opinion, does the Performance Appraisal System give a proper

assessment of your contribution to the organization?

No. of respondents Percentage

Yes 35 70%

No 15 30%

Total 50 100%
 30%

Yes
No

70%

Interpretation:
In the above graph shows that 35(70%) of employee says yes Performance

appraisal System give a proper assessment of your contribution to the organization

and rest 15(30%) employee says No.

Q5. How often does your Performance assessment match to your

expectations?

No. of respondents Percentage

Never 5 10%
 Rarely 12 24%

Sometimes 25 50%

Often 5 10%

Everytime 3 6%

Total 50 100%

50%
50%
45%
40%
35%
30% 24%
25%
20% Series1
15% 10% 10%
10% 6%
5%
0%

Interpretation:
In the above graph shows that 5(10%) of employee says never, 12(24%) says

Rarely, 25(50%) says sometimes, 5(10%) says often, 3(6%) says everytime.

Q6. According to you, how often should the Performance Review take place?

No. of respondents Percentage

Once a week 20 40%

 Once a month 12 24%

Every 3 months 8 16%

Every 6 months 7 14%

Once a year 3 6%

Total 50 100%

40%
40%
35%
30%
24%
25%
20% 16%
14% Series1
15%
10% 6%
5%
0%
Once a Once a Every 3 Every 6 Once a
week month months months year

Interpretation:
In the above graph shows that 20(40%) of employee says once a week, 12(24%)

says Once a month, 8(16%) says every 3 months, 7(14%) says every 6 months,

3(6%) says once a year.

Q7. What is your Satisfaction level with the current Appraisal System?

No. of respondents Percentage

 Very low 3 6%

Low 5 10%

Average 25 50%

High 12 24%

Very high 5 10%

Total 50 100%

50%
50%
45%
40%
35%
30%
24%
25% Series1
20%
15% 10% 10%
10% 6%
5%
0%
Very low Low Average High Very high

Interpretation:
In the above graph shows that 3(6%) of employee says very low, 5(10%) says

Low, 25(50%) says average, 12(24%) says High, 5(10%) says very high.

Q8. How important do you think is Performance Appraisal to your

Performance?
 No. of respondents Percentage

Not important 5 10%

Less important 7 14%

Important 13 26%

Very important 8 16%

Most important 17 34%

Total 50 100%

10%
34% 14% Not important
Less important
Important
26%
16% Very important
Most important

Interpretation:
In the above graph shows that 5(10%) of employee says not important, 7(14%)

says less important, 13(26%) says important, 8(16%) says very important, 17(34%)

says most important.

Q9. Do you feel that performance appraisal is need in an organization?

 No. of respondents Percentage

Yes 45 90%

No 5 10%

Total 50 100%

10%

Yes
No

90%

Interpretation:
After analyzing the above data, it is clear that 90% respondents feel that annual
performance evaluation is needed in their organization.
Q10. Do you agree that the existing annual performance evaluation format

covers every aspect of performance and potential?

No. of respondents Percentage

Yes 35 70%

No 15 30%

Total 50 100%

30%

Yes
No

70%

Interpretation:
According to above data, 70% of total respondents are agreed that the existing

annual performance evaluation format covers every aspect of performance and

potential.
4.2 FINDINGS

 After analyzing the above data, it is clear that 90% respondents feel that

annual performance evaluation is needed in their organization.

 70% of total respondents are agreed that the existing annual performance

evaluation format covers every aspect of performance and potential.

 60% were agreed that the annual performance evaluation report needs to be

simplified.

 80% of total respondent consider that present performance evaluation system

is linked with the objective of the organization.

 80% of total respondent think that the appraisal system helps to find out

employee’s strength and weakness.

 60% of total respondent consider that the present appraisal system is capable

of fulfilling the needs of employees personal growth and development.

 CHAPTER-5

CONCLUSION & SUGGESTIONS

5.1 CONCLUSION

5.2 SUGGESIONS
5.1 CONCLUSION

The function of performance appraisal is to help employees develop so that they

can contribute more effectively. In order to help employees to develop and learn,

they need to know what they need to change, where (specifically) they have fallen

short, and what they need to do.

The ideal approach to performance evaluation is that in, which the evaluation is

free from personal biases and prejudices. This is because when an evaluation is

objection, it minimizes the potential capricious and dysfunctional behavior of the

evaluator, which may be detrimental to the achievement of the organizational

goals. Inequalities in evaluation often destroy the usefulness of the performance

appraisal system resulting in accurate, invalid appraisal, which are unfair too.

The study shows that many of the managers are well aware of necessity of the

performance appraisal system for a better improve performance for organizational

growth. There is need for total objectivity in assessment of performance, which can

be done through following line of action:-

1. Existence of atmosphere of confidence and mutual trust so that both superior

and employee may discuss matter frankly and suggestion for achieving

organizational goals and objectives.

2. By making performance appraisal system transparent, that is appraise should be

made aware of how and why he is appraise in a certain way. So that he can self

appraise himself.

5.2 SUGGESTIONS

To increase the performance level of the employees, the company should

concentrate mainly on the incentive and reward structure rather than their

motivational session.

 Ideal employees should concentrate on their job.

 Educational qualification can be the factor of not an effective job.

 Company should give promotion to that employee who deserves it.

 There should be rating of performance rather than personal traits should be

given due weight. Suggestion for improvement should be directed towards

the objective facts of the job (such as work schedule, output reports).

 A post performance appraisal interview should be arranged so that

employees may be supplied with feedback. So that there need may be

organized.

 The standards of performance appraisal can be improved by training of

evaluators. It has been indicated that appraiser who are trained in how to

evaluate subordinate tend to be more effective appraiser than who has not

undergone training.
 By including more space and open ended question in performance appraisal
form, which is being used to review individuals.

 By conducting seminars and lectures in order to improve the skills of

manager to make performance appraisal system more effective and

objective.
 ANNEXURE

- QUESTIONNAIRE

- BIBLIOGRAPHY
 QUESTIONNAIRE

Name: …………………………………………………………………

Designation: …………………………………………………………..

Experience: ……………………………………………………………

Contact No.: …………………………………………………………..

1) Have you worked in any other Company prior to joining this Organization?

a) Yes b) No

2) Were you informed about the Performance Appraisal model, used in the

Organization, during your induction?

a) Yes b) No

3) How do you find the Performance Appraisal Model in this Organization? (Mark

all the relevant options)

a) Simple b) Complicated

c) Objective d) Subjective

e) Efficient f) Inefficient

4) In your opinion, does the Performance Appraisal System give a proper

assessment of your contribution to the organization?

a) Yes b) No

5) How often does your Performance assessment match to your expectations?

a) Never b) Rarely
c) Sometimes d) Often

e) Every time

6) According to you, how often should the Performance Review take place?

a) Once a week b) Once a month

c) Every 3 months d) Every 6 months

e) Once a year

7) What is your Satisfaction level with the current Appraisal System?

a) Very low b) Low

c) Average d) High

e) Very high

8) How important do you think is Performance Appraisal to your Performance?

a) Not Important b) Less Important

c) Important d) Very Important

e) Most Important

9) Do you feel that performance appraisal is need in an organization?

(a) Yes (b) No

10) Do you agree that the existing annual performance evaluation format covers

every aspect of performance and potential?

(a) Yes (b) No

11) The appraisal system provides for a frank discussion between appraiser and
appraisee?
 a) very true b)true

c) partly true d) not true

12) How do you support your subordinates?

_____________________________________________________________________________________
_______________________________________________________________.

BIBLIOGRAPHY

BOOKS

1. Kothari C.R., Research Methodology, New Delhi; New Age International

Publication, second edition.

2. Ashwathapa K., Human Resource Management (third edition), Tata McGraw

Hill Publication Company Ltd. Page no. 81-136,171,179,267,284.

3. Chhabra. , T. N. Human Resource Management , Dhanpat Rai $Co(P)Ltd. India,

ninth edition.

4. Monnapa Arun., Human Resource Management ,Tata McGraw Hill Publication

Company Ltd.
WEBSITES:

- www.bsphcl.bih.nic.in/
- www.nbpdcl.in/
- www.sbpdcl.in/
- www.bsptcl.in/
- www.google.com