HINDALCO INDUSTRIES LTD

Our Vision

To be a premium metals major, global in size and reach, with a

passion for excellence.

Our Mission

To relentlessly pursue the creation of superior shareholder value by

exceeding customer expectations profitably, unleashing employee
potential and being a responsible corporate citizen adhering to our
values.

Our Values

Integrity

Commitment

Passion

Seamlessness

Speed

THE MARKET LEADER

pg. 1
Hindalco is a leading domestic player in two metals business segments — aluminum and copper.

The aluminium division's product range includes alumina chemicals, primary aluminium ingots
and billets, wire rods, rolled products, extrusions, foils and alloy wheels.

The company has a significant market share in all the segments in which it operates. It enjoys a
domestic market share of 42 per cent in primary aluminum, 63 per cent in rolled products, 20 per
cent in extrusions, 44 per cent in foils and 31 per cent in wheels.

As a step towards expanding the market for value-added products and services, Hindalco has
launched several brands in recent years, which include Aura for alloy wheels, Freshwrap for
kitchen foil and Everlast for roofing sheets. Our exclusive showroom, The Aluminium Gallery,
seeks to promote Hindalco products to its customers. It is a platform for the company to
showcase quality products to a quality audience in an appropriate ambience. The exhibits include
products like windows, doors, furniture, ladder, roofing sheets and ceiling and cladding panels.

Hindalco's products are well received not only in the domestic market, but also in the
international market. The company's metal is accepted for delivery under the high grade
aluminium contract on the London Metal Exchange (LME). The company exports about 17 per
cent of its total sales volume of aluminium.

The Company’s alumina chemical business is a leader in manufacturing and marketing of

speciality alumina and alumina hydrate products in the country. It has a major market share in

pg. 2
the country. These speciality products find wide usage in diversified industries including water
treatment chemicals, refractories, ceramics, cryolite, glass, fillers and plastics, conveyor belts
and cables, among others. The company also exports these alumina chemicals to over 30
countries covering North America, Western Europe and the Asian region.

Birla Copper, Hindalco's copper division at Dahej in Gujarat, enjoys a leadership position in
India, having built over 40 percent of the domestic market share within three years of its
commissioning. It has also made successful forays into the export markets of the Middle East,
Southeast Asia, China, Korea and Taiwan.

The copper plant produces world-class copper cathodes, continuous cast copper rods and
precious metals. Sulphuric acid, phosphoric acid, di-ammonium phosphate, other phosphatic
fertilizers and phospho-gypsum are also produced at this plant.

Hindalco businesses — Share of net sales value 2006-2007

Aluminium

key products and locations capacities country

brands

pg. 3
Hindalco Industries Ltd.

alumina chemicals Renukoot (Uttar Pradesh), 1,160,000 tpa India

Muri (Jharkhand), Belgaum
(Karnataka)

primary aluminium Renukoot, Hirakud 489,000 tpa

(Orissa),
*Taloja

extrusions Renukoot, Alupuram 27,700 tpa

rolled products Belur (West Bengal), 200,000 tpa

Taloja (Maharashtra),
Renukoot, Mauda
(Maharashtra)

wire rods Renukoot, Alupuram 64,400 tpa

(Kerala)

aluminium foil Silvassa (Dadra & Nagar 11,000 tpa

Haveli), Kalwa
(Maharashtra)

aluminium wheels Silvassa (Dadra & Nagar 300,000 pcs

Haveli)

*For Taloja recycling plant

Indal (subsidiary of Hindalco)

Kollur (Andhra Pradesh) 4,000 tpa
foil rolling

COPPER

pg. 4
 key products and locations capacities country
brands
Birla Copper (Hindalco Industries Ltd.)

copper cathodes Dahej (Gujarat) 500,000 tpa India

continuous cast copper 97,200 tpa

rods

sulphuric acid 1,670,000 tpa

180,000 tpa
phosphoric acid

gold (Birla Gold) 15 mt

silver (Birla Silver) 150 mt

power 135 mw

DAP and complexes 400,000 tpa

(Birla Balwan)
Hindalco Industries Ltd. (Aditya Birla Minerals Resources Pty. Ltd.)

copper cathodes Nifty mines 25,000 tpa Australia

copper in concentrate Mt. Gordon mines 40,000 tpa Australia

power Mt. Gordon mines 28 mw Australia

Landmarks

2007

pg. 5
 • • India Today Group's Readers Digest Gold Award 2007 in recognition of the work
that truly exemplifies the highest values of society as well as those of Reader's Digest
at the Pegasus Corporate Social Responsibility Awards.

• • Hindalco awarded the CII - Sorabji Green Business Centre "National Award for
Excellence in Water Management 2007".

• • In May 2007, Novelis became a Hindalco subsidiary with the completion of the
acquisition process. The transaction makes Hindalco the world's largest aluminum
rolling company and one of the biggest producers of primary aluminum in Asia, as
well as being India's leading copper producer.

2004

Hindalco receives, India CFO Award 2004 for excellence in finance in a large corporate.

2003

Hindalco receives the Asian CSR Award for its "Rural Poverty Alleviation Programme". The
Asian CSR Awards are Asia's premier awards programme on Corporate Social Responsibility.

HR VISION

pg. 6
 To provide an enabling environment where employees’
competencies are nurtured and harnessed towards sustainable
business growth and leadership.

HR MISSION

To proactively assess and provide services for the HR needs of the

business & customers for the attainment of organizational goals.

HR OBJECTIVES

•To collaborate with and support internal Customers of HR

services viz. effective manpower planning, ensuring
harmonious industrial relations etc.

•To review and redesign the structure of the organization

with clarity of role, responsibilities and accountability for
overall organizational effectiveness and speedy response
to emerging business challenges.

•To develop knowledge and skills of the employees’ and

groom leaders with functional and business competencies
to meet future demands of the organization (viz.
flexibility and change management).

•To benchmark best HR practices in order to enhance Human

Resource effectiveness.

•To enhance employee productivity through rationalization

of jobs and manpower optimization.

pg. 7
 •To promote employee involvement in decision making, team
working, creativity and empowerment.

•To institutionalize transparency by framing, updating and

communicating systems and processes.

•To maintain good liaison with government/ external

agencies in order to better serve the organizational cause.

•To provide a safe and healthy work environment and

continuously benchmark and update the standards of
safety and hygiene; and

•To work towards improving the quality of work life of

employees and the life of their families.

HR Department Structure

The following diagram describes the departmental structure. The chart illustrates various
positions in the HR department at HINDALCO Industries Ltd.

pg. 8
PREAMBLE

Performance management system (PMS) is the heart of any “people management " process in
organization. Organizations exist to perform. If people do not perform organizations don't
survive. If people perform at their peak level organization can compete and create waves.
Performance management systems if properly designed and implemented can change the course
of growth and pace of impact of organizations.
pg. 9
Performance management is process of goal setting, mentoring, coaching and evaluating
performance. This system is important to the organization because the employees are
accountable for achieving results that are clearly tied to organizational goals. Information about
linkage between mission goal and individual accountability is reviewed during the performance
management process. The system also incorporates performance plans which have specific
business results with clear measures of performance.

Hindalco Industries has an online performance management system portal developed in

POORNATA which is a Peoplesoft HRMS 8.9 implementation project. This system was
implemented 2 years ago. This system was taken up for project study, as it is an upcoming
technology in all industries, to gain information about the process, its importance and to
understand the various modules included in POORNATA. The understanding of online
performance management system is of utmost importance as the trend of implementing HR
policies through system driven program to achieve organizational goals is increasing. The Aditya
Birla Group also backed the best employer award, so I found it necessary to study the human
resource management system at HINDALCO INDUSTRIES as it is one of the important
component in the policies of the group.

The project includes the study and evaluation to check the effectiveness of the online
performance management system. The effectiveness was evaluated through a questionnaire,
which included questions based on the online Performance management process. This
questionnaire was administered to a sample of 50 employees and the data was collected for
analysis. This survey was undertaken to find out the loop holes in the system, areas where the
employees have difficulty in operating the system, any changes employees want in the system
and overall feedback about the online system.

pg. 10
OBJECTIVE OF THE STUDY

To study and evaluate the effectiveness of overall online performance management system.

Reasons for the study

• Study the HRMS at HINDLACO INDUSTRIES LTD.

• Critically evaluate the effectiveness of online Performance Management System.

• To get the feedback of the employees on the online Performance Management System.

pg. 11
RESEARCH METHODOLOGY

Primary Data Source:

The source of primary data in the research was Structured Questionnaire. This method of
collecting data by mailing the questionnaire to respondents is most extensively employed in
various economic and business surveys. This method of data collection was chosen because:-

• As the employees are located at different geographical location so, the method was low in
cost and adequate.

• It is free from the bias of interviewer, answers are in respondents own words.

• Respondents have adequate time to give well thought answers.

The questionnaire developed for the study included the Five Point Rating Scale. The scale items
were-

5- Strongly Agree

4-Agree

3- Neutral

2- Disagree

1- Strongly Disagree

Items in the questionnaire were included depending upon the various aspects of e-PMS in
POORNATA Portal at HINDALCO Industries Ltd.

pg. 12
Secondary Data Source

Source of secondary data were various books, reckoner and websites.

Sample Size

The sample size selected was of 50 employees.

Sampling Design & Technique

The sampling design was the Non- Probability Sampling. In this type of sampling items for the
sample are selected deliberately by the researcher; his choice concerning the items remains
supreme. In other words, under non-probability sampling the organizers of the enquiry
purposively choose the particular units of the universe for constituting a sample on the basis that
the small mass that they so select out of the huge one will be representative of the whole. In
small enquiries and researches, this design may be adopted because of the relative advantage of
time and money inherent in this method of sampling.

Quota Sampling was adopted as the sampling technique. In this technique, the interviewers are
simply given quotas to be filled from the different strata with some restrictions on how they are
to be filled. The actual selection of the items for the sample is left to the interviewer’s discretion.
This sampling is very convenient and relatively inexpensive.

Sample Distribution Hindalco Industries limited

Total population=200(Metals+Marketing)

Sample size selected=50(25% of total population)

Total no. Of respondents= 40

Non-respondents= 10

pg. 13
METALS

DEPARTMENT NO. OF EMPLOYEES

CPO-MET 3

BUSINESS IT-MET 6

TREASURY AND ACCOUNTS 3

RISK MANAGEMENT 1

OFFICE OF CFO 5

BH-MET 5

DIRECT TAX-MET 1

PROJECT-MET 1

MARKETING

pg. 14
 Everlast -HHM 3

Business Finance Domestic- HHM 2

ERP- HHM 1

Regional Extrusion-HHM 5

IT-HHM 2

Rolled Export Product Head-HHM 3

Regional Rolled Domestic –HHM 4

Territory Rolled Delhi- HHM 1

Territory Primary – HHM 1

CMO- Marketing Hindalco 1

Export –MHO-HHM 1

Regional Primary 3

The sample consist only the management cadre employees like the secretary, deputy manager,
manager, general manager, assistant manager, officer, senior manager, vice president etc. It does
not include the supervisory level staff as the online PMS is applicable only to the management
cadre employees.

pg. 15
INFORMATION AND ANALYSIS
Theoretical framework of the topic

Performance Management System

Performance management system is the process of performance planning (goal setting),

performance mentoring, coaching, measuring (evaluation). Individual performance linked to
organizational goals, giving him/ her feedback, rewarding the individual achievements against
set performance goals and required competencies, and working out a plan for his/ her
development.

The system of Performance Management for an organization is a strategic and integrated process
that establishes a culture of sustained success by improving the performance of the people who
work in them and by developing the capabilities of individuals’ contributors and teams.

Performance Management ….

• Aligns individuals goals to organizational goals

• Is a tool to channel employee efforts in the right direction and get work done
• Ensures clarity of role to be performed
• Encourages feedback and creates an environment for development
• Facilitates better understanding and rapport between manager and team members
• Measures and assesses all performance against jointly agreed goals.

pg. 16
Performance management has two objectives-

Evaluation objective: To provide feedback to individuals on their performance levels and on current
competency levels.

Performance evaluation and assessment of the readiness of an individual to take on higher

responsibilities

To generate data required for decisions on compensation, training etc.

Development objective: To counsel and coach subordinates so that the improve their
performance and develop competencies

To motivate subordinates through recognition and support

To strengthen supervisor subordinates relations

To diagnose individual and organizational competencies, so that actions can be taken on problem
areas

To define the training requirements based on individual competency

pg. 17
Linkage of performance management system to various other processes

Performance Management System

Performance Assessment Promotion/ Upgradation

Job rotation and

Compensation Transfer
Management

Training and
Development

pg. 18
PROJECT STUDY

Introduction to POORNATA

POORNATA is a Group wide People Soft HRMS 8.9 implementation project. This project was
started in May 2005 with the functional and technical training; it was implemented in 18 months
from the start date. The purpose of this project is to implement HR policies through a system
driven program, to achieve organizational objectives. POORNATA is implemented across 78
domestic units and 26 units overseas. It covers all management cadre employees across the group
and all employees for transworks, approximately 1600 employees.

Objectives

• Poornata automates and standardizes HR processes across the group for all management
cadre employees.

• Poornata introduces best- in- class HR processes through out the group.

• Poornata gives employees access to data which was hitherto available only to the HR
department and thus enables them to plan their own development.

• Poornata also gives managers access to information about their direct reports and thus
enables managers to plan the development of their direct reports more proactively.

Scope of POORNATA

Modules included in POORNATA are:

pg. 19
• Recruitment

• Workforce Administration

• Position Management

• Compensation

• Performance Management System

• Enterprise Learning Solution

• Talent Management

Significance of POORNATA

1. Employees

• Empowers employees by making development self driven.

• Creates career opportunities for employees by enabling knowledge sharing of likely

vacancies and jobs amongst varied businesses.

2. Business

• Delivers faster services.

• More- database decision-making.

• Put Line Managers in control of People and development.

3. Group

pg. 20
 • Takes the group to a league of Global Organizations with cutting edge HR-ERP
operational that enables seamless delivery of common HR processes a diversified multi
location group.

• Builds employer brand.

4. HR Department

• Enables faster service delivery.

• Facilitates continuous improvement.

• Builds a more professional image.

• Makes HR department more data driven.

The online Human Resource Management System at HINDALCO is called as

“POORNATA” .This on- line Performance Management system enables the group to
proactively manage their performance appraisal .The module delivers maximum business benefit
by helping an employee and manager to set goals and track them on an ongoing basis.

The Performance Management business process includes the following basic steps-

1. Identification of goals for the next year.

2. Review of performance against goals set for current year.

This guide is both a reference tool for use in your day- to- day role and also a training manual. It
is a common appraisal process, an automated, system driven; goal focused and standardized
process across the group. Performance management at Aditya Birla Group will be focused to-

1. set goals for coming financial year

2. half- yearly review of performance

pg. 21
3. Annual appraisal.

Performance Management system in POORNATA includes the following basic processes:

1. Annual goal setting: in the months of April/may every year, after the annual planning and
budgeting rounds, all teams will identify their KRAs and Goals for the forthcoming financial
year. This process will largely happen off-line. An employee will fill in his Goal Setting
Document in Poornata System, listing the KRAs, Goals, and Measurement Criteria and due
date for completion of specific goals. He will then notify the same to his manager. The

Manager recommends changes and approves the document. The approved document is
available to the employee and his manager for reference throughout the year.

Organizational Goal Setting:

Senior Function Head Employee with

Management sets Annual Manager sets
Start sets Annual Departmental Individual goals
A
Organizational goals
Goals

Individual Goal Setting:

B

Employee and
Manager get a Employee sets goals Goal setting
view only access Manage document is
and assigns
of the job r agrees finalized
weightages and
description while measures pg. 22
assigning KRAs
2 Mid- Year Review: of goals set at the beginning of financial year will be held in the months of
October/ November every year. It will be initiated by manager. The main focus of the mid year review is
to check if the goals set at the beginning of the year are relevant or if they need to be updated. It gives an
opportunity to Manager and his team members to identify and discuss about any performance issues,
initiate corrective action for the same.

HR Administrator Manager will Employee goes to Manager

sends email to all reopen the ‘goals’ edit details reviews the
employees and document and enter the results
managers to initiate ‘status’ and against the
half yearly review ‘complete percent’ agreed goals

2. Annual Performance Appraisal: against goals set and achieved will be held during the
months of April- May every year. The employee will complete his self appraisal against
goals set online in the Poornata System and submit the same to his manager for review. The
manager will discuss the performance of employee offline, give him feedback on his
performance and capture his own comments and performance ratings. The document is send
to the HR department for further processing.
Hindalco has two types of employees on payroll and on contract. Payroll employees are of
two types- Management employees (Job band 11- Executives) and Supervisory employees
(S3- S1 level). POORNATA system covers only management level employees. POORNATA

pg. 23
 is under HRMS. It has various employee and manager self- service options like personal
information, recruitment, enterprise learning solutions, performance management system,
and talent management system.

Three different people are a part of POORNATA:

• Employee
• Manager
• Administrator ( Human resource department)

The administrator of the system is the HR department, it has the accountability and responsibility
for the entire process .POORNATA has different modules they are- work force administration,
recruitment, and performance management system and position management.

The performance management system process is completed in POORNATA by an employee

(employee self service) and by manager (manager self service).As the system includes 3
processes. The first process is Goal Setting, mid year review and Annual performance appraisal.
There are nine sections in Performance document: Job Purpose, KRA, Goals, Value, Overall
Summary, Employee Comments, and Manager Comments, Training need identification, Career
Aspiration.

Both the employee has to log on to www.portal.poornata.com by giving their User ID and
Password and then access the document through HRMS > Self service> Performance
Management> My performance document> current document > ABG Performance Document

Performance Management Process in POORNATA by Employee

The goal setting process starts with defining the job purpose, the KRAs and then the goal is
finally set. Goals include the job description, start and end dates, measurement criteria of the

pg. 24
goal, giving weightages to each goal, stating the progress status of the goal (initially not started
status). The second process is the mid year review, the HR department will notify to start the mid

year reviews, the goal status (in progress/ complete, percentage achieved will be updated by the
employee. The last process is the Annual performance appraisal, here no updates are made to the

job purpose and KRAs, only the goal status is updated (100% achieved, complete status). The
employee gives his comments stating all the facilitating and hindering factors in achieving the
goals, after which employee gives rating to each goal on a 5 point rating scale-

5- Far exceeds expectation

4- Exceeds expectation

3- Meets expectation

2- below expectation

1- Far below expectation

After the goal rating is completed, a goal summary is given by the employee; mid year review
comment is given by the employee. Next the employee rates the values (commitment,
seamlessness, integrity, speed, passion) with the following rating scale-

* Needs improvement

** Meets standards

*** Strength

pg. 25
The next step involves training need identification i.e. the training employee needs in the coming
year and the career aspirations (short term as well as long term) are identified.

The performance management process in POORNATA by manager.

Now the Manager reviews the goals set by the employee, mid year performance status and
annual performance appraisal of the employee is reviewed and appraised.

The manager reviews the job purpose, KRAs and goals along with weights, after receiving an
offline e-mail from HR administrator to initiate half yearly assessment; manager will reopen the
performance document and will review the current status of the completion of each goal. Annual
Performance review is done by the manager. The manager will review the document of
employee by logging in to the POONATA portal. The employee will be evaluated by the
manager by rating the employee’s performance against each goal by selecting a rating from the 5
point rating scale and by rating employee’s performance against each value by selecting a rating
from the scale.

Training needs and career aspirations will be identified by the manager. By clicking on the
calculator icon, the overall rating will be available to the manager. Manager will then forward
the document to the HR department for further processing.

The HR department gets a prenormalised report which has a rating to be given to the employee.
In case the rating finalized by the moderation committee is different as compared to the one
given by the manager, the HR department would deny the document. The prenomalisation
process has 3 people involved – the HR administrator, Top management level employee and
department head. The prenomalisation process is based on –

pg. 26
How the manufacturing industry has performed

How the company has performed

How the unit has performed

How the department has performed

How the functional unit has performed

How the team has performed.

When there is a new employee the HR department conducts induction program for employee self
service and manager self service to access POORNATA and refresher training program is
conducted by the department 15 days prior to the appraisal process in the organization.

Various Modules in POORNATA

1. Personal Information :

Employee self service- employee self service is used by the employees to view and update their
own information in POORNATA. Information pertaining to Name, address, marital status,
education, honors and awards, languages, licenses, memberships, email-id , phone numbers,
emergency contacts. There are 3 kinds of processes to update information through employee self
service.

• Process without approval or notification

Employee updates

a. Phone number

b .Email address Database updated

c. Emergency
contact number

pg. 27
This updating of information does not need the approval of HR administrator.

• Process with HR notification

Employee updates

a. Education

b. Honors& awards Database updated

c. Languages

d. Licenses&
certificates Supervisor HR
notified administrator
e. Memberships notified

• Process with HR approval

Employee updates
HR to Database
a. Name approv updated
e
b. Address

c. Marital status

Employee
notified

pg. 28
Name- employee submits a name change request online, he/she must provide sufficient proof to
the concerned HR manager to get an approval like, marriage certificate, divorce certificate.

Manager self service- the e-Profile manager desktop in POORNATA is a web based application
that allows the managers to view personal and job related data of all the employees to them. The
manager can view the details

of the employees reporting to them with the help of manager self service. Following details can
be viewed by a manager using manager self service – Name, address, marital status, education,
honors& awards, languages, licenses, membership, email ID, phone numbers, emergency
contacts.

Manager selects the

Manager clicks
employee whose
on the hyperlinks
data he/she wishes
to view the data
to see

2. Recruiting:
Manager self service- creating a job opening, the hiring manager is typically a line manager who
is of a department head and above level. The process flow is as follows-

Hiring manager initiates job

opening

Adds job details: BU, Position,

Location, Salary, Staffing &
hiring team information pg. 29
 System sends job opening
details to the supervisor of the
hiring manager for approval

Employee self service- The process flow is as follows-

Employee views job details

posted in portal

Employee applies by filling

online application form

Employee submits application

form

The employee views the job postings on the careers page through self service.

3. Interview calendar and Evaluation

Employee self service- recruiter schedules interview for an applicant

a. Interview calendar
b. Interview team schedule
c. Interview evaluations
- job band 10 & below
- job band 7,8 &9

pg. 30
 - job band 4,5 &6
- job band 3 & above

3. Enterprise learning solution:

Employee self service- POORNATA that enables, the group to proactively manage their
learning environment, ensuring that employees acquire knowledge and skills, consistent with
corporate objectives. Employee learning solution will focus on session based trainings.
Employee learning solutions process at Aditya Birla Group is used for entire range of end- to-
end training process. The objective is to standardize and automate training processes across the
group-

- to create and foster a learning culture.

- to enable the learners to plan and review their learning.

In employee learning management system employee can enroll himself to an activity according
to the training needs identification and objectives assigned to him. His/ her manager will approve
or decline the activity to be attended by him / her .If approved then learner can attend the
activity.

Manager self service- manager can browse or search the catalog for activities and programs in
which to enroll and register any team member directly reporting to them. They can add activities
to employees learning plans and enroll the employees in the planned activities later.

4. Talent management system:

pg. 31
Purpose- the Talent Management system (TMS) within Poornata enables the group to proactively
manage talent. The module delivers maximum business benefit by helping a Manager to assess
competencies and track them on a going basis. The talent management business process as
envisaged in the system focuses on the potential and competencies associated with the role of the
employees.

Competency Evaluation Cycle- competency evolution form will include evaluation of the
employee on set of competencies which are attached to his/her job profile. Each position will be
linked to a job profile where competencies will be defined based on the current role and
responsibilities.

Manager will evaluate the

Submits the Reviewe
employee on the pre defined
document for r
competencies defaulting in
approval to
the competency evaluation
the reviewer Reviews
form and give potential

Reviewer
approves and
submits it to
HR
Administrator

HR
Administrator
process the
document

pg. 32
RESEARCH ANALYSIS-
A survey was undertaken to study and evaluate the effectiveness of online performance
management system. The data obtained is analyzed below.

Graphical Presentation

Table 1- Graphical representation of percentage responses of employees on the parameter

‘Clarity in understanding’ the online performance management system.

pg. 33
Table 2- Graphical representation of percentages responses of employees on the parameter
‘external factors’ in the online performance management

Table 3- Graphical representation of percentages responses of employees on the parameter

‘career growth’ associated with the online performance management system.

pg. 34
Table 4- Graphical presentation of percentage responses of employees on the parameter ‘timely
notification’ associated with the online performance management system.

pg. 35
 Table 5- Graphical representation of percentage responses of employees on the parameter
‘Grievance redresses’ related to the online performance management system.

Table 6- Graphical representation of percentage responses on the parameter ‘ satisfaction with

goal setting and weightages given’ in the online performance management system.

pg. 36
The above shown graphical presentation shows the percentage distribution of responses on the
parameters set to check the effectiveness of the online performance management system. The
percentage responses are calculated based on the responses given by the employees on the five
point rating scale.

Table 7- Pie- chart distribution table presenting the percentage distribution of ‘Agree
Responses’ to the parameters set on the online performance management system.

pg. 37
FINDING AND OBSERVATION

pg. 38
The sample study was undertaken to check the effectiveness of the online Performance
Management System.The sample taken up for the study was of 50, out of which 40 respondents
gave their feedback.

A structured questionnaire was developed with five point rating scale.The no. of questions
included were 19 .These questions are put under six parameters which are as follows, 1. Clarity
in Understanding 2. External Factors 3. Career Growth 4. Timely Notification 5. Grievance
Redressal 6. Satisfaction with goal setting and weightages given. Let us analyse each parameter
in detail.

Clarity in Understanding- this includes questions pertaining to the navigation path given, to
operate the Performance Management System in HRMS ( Poornata) and the manager assists the
employee in getting a clear idea of the task to be performed. 40 respondent’s feedback on this
parameter shows that 66.25% of respondents agree with the parameter and 30% strongly agree ,
2.5% disagree and 0% strongly disagree with the set parameter. This indicated that maximum
no.of employees have clear understanding of operating the online performance management
system and the tasks to be performed.

External Factors – This parameter includes factors which are external to the online performance
management system. The questions related to feedback on goal setting, basis of final rating,
facilitating and hindering factors in performance are taken into consideration. The percentage
responses are as follows, 58.33% agree, 22.5% strongly agree, 11.66% disagree, 0% strongly
disagrees and 10% neutral. This clearly indicates that external factors are also taken into
consideration other than those included in the system.

pg. 39
Career Growth- this parameter essentially deals with whether the online performance
management system helps to appraise factors related to the career aspirations, future
performance improvement, career planning and rewards of the employees in the organization.
The responses are as follows, 59.37% agree, 16.25% strongly agree, 13.12% neutral, 10%
disagree and 0.625% strongly disagree. This clearly indicates that career growth is taken into
account by the online performance management system.

Timely Notification-with this parameter feedback was taken to check factors like timely updates
given by the HR dept pertaining to the online performance management system and the deadlines
set to complete the performance document in the online performance management system. The
responses are as follows, 52.5% agree, 18.75% strongly agree, 13.75% neutral, 7.5% disagree
and 6.25% strongly disagree. This clearly shows those employees are given proper notifications
when required.

Grievance Redressal- This parameter deals with factors like, addressing the doubts and queries
by the Performance management system operator and whether the employees feel free to express
their disagreement regarding the appraisal decision, are taken into consideration by the online
performance management system. The responses are as follows 67.5% agree, 17.5% strongly
agree, 18.75% neutral, 5% disagree and 1.25% strongly disagree with the set parameter. This
clearly indicates that employee’s grievances are properly addressed.

Satisfaction with goal setting and weightages given to the goals- This parameter includes
factors related to goal setting, weightages given to the goals, time period set for goal setting, key
result areas associated with goal setting which is performed in the online performance
management system. . The responses are as follows 63.12% agree, 20% strongly agree, 6.87%
neutral, 4.37% disagree and 0.62% strongly disagree with the set parameter.

pg. 40
Figure 7 illustrates the overall percentage of employees satisfaction with the parameters defined
in the questionnaire relating to the online performance management system. It can be seen that
the maximum satisfaction and agreement is with the “Goal Setting” parameter i.e. 24%. This
means that, the process of goal setting and assigning weightages to the respected goals is
adequate in the online performance management system. Employees agree that, goals are set and
with mutual agreement between the manager and the employee. Employees also agree to the
point that, the weightages given against respective goals is adequate and the goals are also
revised based on changing business needs of the organization.

The maximum dissatisfaction is seen with the parameter “Timely Notification” i.e. 10%. This
indicates that employees are not very satisfied with the updates that they receive from the HR
regarding their case. Employees also exhibit dissatisfaction with the deadlines set to complete
and submit the performance documents.

But the study and analysis did reveal that the online performance management system is
effective one.

pg. 41
CONCLUSION-

From the above data it can be observed that the online performance management system at
HINDALCO INDUSTRIES LTD is extremely effective. Employees are satisfied with the online
performance management system and the coverage given to various factors of performance
appraisal.

LIMITATIONS OF THE STUDY

The study performed encompasses following limitations:-

1. The sample size selected was 50 out of the total population of 200; hence the study and
evaluation cannot be generalized to the whole population.

2. The sampling does not include all the divisions of HINDALCO INDUSTRIES LTD.

3. As the survey was conducted online, no personal interview was taken.

4. Due to the non respondents few aspects of the research analysis got defeated.

5. As the sampling technique is Quota sampling, statistical analysis cannot be performed.

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SUGGESTIONS –

According to my observation following suggestions should be taken into consideration,

• Gap Analysis- Training needs are given by the employees online, once the identification
is done and training is imparted to the employees, some feedback about the training is to
taken from the manager and the respective employee. Feedback in terms of whether the
program met the objective, did it make value addition to the knowledge of the employee
and its application in the present job should be undertaken. Thus the gap between training
need identification and imparting of training should be analyzed.

• Quarterly performance reviews should be undertaken for short term goals.

• Some employees are not satisfied with the updates given by the HR department related
to their case, while assessing the online performance appraisal system. Thus proper
feedback should be given to the employees to further increase the effectiveness of the
system.

• Training need identification should be done half-yearly, so that it helps the employees in
improving the performance in the remaining time period.

• The career growth factor should be given more attention in the online performance
management system. As 13.12% neutral and 10% disagree responses are observed in the
study, which means that some percentages of employees are not satisfied with their career
growth. This factor is important, from the view of employee performance and retention.

pg. 43
ANNEXURE-

Blank questionnaire and five copies of the filled in questionnaire by the employees attached.

pg. 44
BIBLIOGRAPHY
• Sahu, R.K., Performance Management System, New Delhi, Excel Books, 2007

• Kothari, C.R., Research Methodology, New Delhi, New Age International (P) Ltd., 2008

• www.adityabirla.com/the_group/heritage.htm

• www.adityabirla.com/the_group/corp_hrcell.htm

• www.adityabirla.com/the_group/corporate_cells.htm

• www.adityabirla.com/the_group/management.htm

• www.adityabirla.com/the_group/our_values.htm

• www.adityabirla.com/the_group/milestones.htm

• www.adityabirla.com/products/index.htm

• www.hindalco.com/products/overview.htm

• POORNATA for me, ePMS Reckoner

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