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PROJECT
REPORTON
PERFORMANCEAPPRAISAL
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TABLE OF CONTENTS
EXECUTIVE SUMMARY 1
OBJECTIVE OF THE PROJECT 2
INTRODUCTION OF COMPANY 3
PERFORMANCE APPRAISAL 13
REVIEW OF LITERATURES 28
PERFORMANCE MANAGEMENT SYSTEM IN NHPC 31
RESEARCH METHODOLOGY 47
ANALYSIS&INTERPRETATION !
LIMITATIONS "4
CONCLUSION ""
SUGGESTIONS "8
#UESTIONNAIRE 7!
REFRENCE & BIBLIOGRAPHY 73
EXECUTIVE SUMMARY
The Performance Appraisal is a process of setting objectives, making plans to achieve those objectivesand accomplishing the desired results. Rewards and recognition are the end stage of this process.
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Organizations use this s stem to assess the performance of an individual, a team, a function and thenthe organization as a total. !n this project, the whole performance management s stem is described for the compan "#P$.
This c cle starts when "#P$ signs a %emorandum of &nderstanding '%O&( with the )overnment of !ndia. !n this memorandum the vision, mission and values, targets and action plans are mentioned. !n
"#P$, s stem have been devised to cascade Organizational )oals into individual goals b framing outobjectives of the compan from the %O& at corporate level and there b preparing a *alance +core$ard both at corporate and unit level. The summarized feature of this process is se uentiall breakingdown the organizational goals into an individual-s.
This project describes about the Performance %anagement + stem which is followed in "#P$. This project also describes the problems faced b the appraises and the appraisers in this s stem. !t alsoelaborates about the steps taken b the appraisers to improve the performances of the appraisees so thattheir efficienc can be increased and later the rewards and recognitions are given in the form of
promotions, incentives and empowerment.
OBJECTIVE OF THE PROJECT
To stud the process and to understand the importance of Performance %anagement + stem in "#P$that s nchronizes the performance of the emplo ees so as to make the work effective.
To anal ze the Performance %anagement + stem of "#P$ in detail and its effectiveness.
To anal ze the problems faced b the appraisee and the appraiser in this s stem.
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To anal ze the steps taken b the appraisers for the improvement of the performances of theappraisees.
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INTRODUCTION OF COMPANY
NHPC LIMITED
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"#P$ imited, formall known as "ational # dro electronic Power $orporation td. was
incorporated in the ear /012 with an authorized share capital of Rs. 3,444 million and with an
objective to plan, promote and organize an integrated and efficient development of h droelectric power
in all aspects. ater on "#P$ e5panded its objects to include development of power in all its aspects
through conventional and non6conventional sources in !ndia abroad. .
At present, "#P$ is a %ini Ratna $ategor 6! 7nterprise of the )ovt. of !ndia with an authorized share
capital of Rs. /,24,444 %illion'/2444cr(and total asset base of 28,981Rs'as on 9/ st march 34/8(.
"#P$ is ranked as a premier organization in the countr for development of h dropower and certified
with !ntegrated %anagement + stem comprising !+O6044/:344;'
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PROJECTS
As on date "#P$ imited has become the largest organisation for h dropower development in !ndia,
with capabilities to undertake all the activities from conceptualisation to commissioning in relation to
setting up of h dro projects. "#P$ imited is also planning to take ?ind and Tidal wave projects in
the countr .
"#P$ imited presentl has an installation base of >241 %? from 34 h dropower stations on
ownership basis including projects taken up in oint Benture. $onsidering the impediments faced
during e5ecution of these projects such as unfavourable geological conditions, difficult law and order
problems, inaccessible and remote locations, the achievement so far is commendable. The generation
performance of these stations has been outstanding.
"#P$ imited is presentl engaged in the construction of 8 projects aggregating to a total installed
capacit of 9304 %?. )iven the renewed thrust on development of h dro power in the countr , "#P$
imited has drawn up a massive plan to add about /4,444 %? of h dropower capacit b the end of
C!!! plan ' ear 3433(.
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NET SALES V$S PROFIT
"#P$ has strong track record in h dropower generation. The compan started power generation in the ear /0;3 with a t urnover of Rs.38cr and made a net profit of Rs.1.>;cr in the first ear. @uring the financial ear 34/9634/8,"#P$ has achieved sales turnover of Rs.2992cr and net profit of Rs.010cr. The compan paid adividend of Rs. 993./9cr DRs 4.94 per share including Rs.3;2.80cr paid to the govt. of !ndia for ear 34/9634/8." hpc has not taken the e uit help since 34416344;. The compan has a likel cape5 plan of Rs.34444cr for C!! five ear plan period. The trend of sales and profit after ta5 of "#P$ 'e5cluding subsidiar compan 6
"#@$( for last 2 ears is as follows:
http://www.nhpcindia.com/projectdetail.htm?CatId=1&ProjectId=11http://www.nhpcindia.com/projectdetail.htm?CatId=1&ProjectId=27http://www.nhpcindia.com/projectdetail.htm?CatId=1&ProjectId=8http://www.nhpcindia.com/projectdetail.htm?CatId=1&ProjectId=9http://www.nhpcindia.com/projectdetail.htm?CatId=1&ProjectId=17http://www.nhpcindia.com/projectdetail.htm?CatId=1&ProjectId=11http://www.nhpcindia.com/projectdetail.htm?CatId=1&ProjectId=27http://www.nhpcindia.com/projectdetail.htm?CatId=1&ProjectId=10http://www.nhpcindia.com/projectdetail.htm?CatId=1&ProjectId=12http://www.nhpcindia.com/projectdetail.htm?CatId=1&ProjectId=19http://www.nhpcindia.com/projectdetail.htm?CatId=1&ProjectId=20http://www.nhpcindia.com/projectdetail.htm?CatId=1&ProjectId=21http://www.nhpcindia.com/projectdetail.htm?CatId=1&ProjectId=23http://www.nhpcindia.com/projectdetail.htm?CatId=1&ProjectId=25http://www.nhpcindia.com/projectdetail.htm?CatId=1&ProjectId=26http://www.nhpcindia.com/projectdetail.htm?CatId=1&ProjectId=7 -
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VISION & MISSIONVISIONA world class, diversified = transnational organization for sustainable development of h dro
power and water resources with strong environment conscience .
MISSIONTo achieve international standards of e5cellence in all aspects of h dro power and diversified
business.To e5ecute and operate projects in a cost effective, environment friendl and socio6economicall
responsive manner.To foster competent trained and multi6disciplinar human capital.To continuall develop state6of6the6art technologies through innovative R=@ and adopt best
practices.To adopt the best practices of corporate governance and institutionalize value based
mana gement for a strong corporate identit .To ma5imize creation of wealth through generation of internal funds and effective management
of resources.
http://www.nhpcindia.com/projectdetail.htm?CatId=2&ProjectId=13http://www.nhpcindia.com/projectdetail.htm?CatId=2&ProjectId=29http://www.nhpcindia.com/projectdetail.htm?CatId=1&ProjectId=30http://www.nhpcindia.com/projectdetail.htm?CatId=1&ProjectId=31http://www.nhpcindia.com/projectdetail.htm?CatId=1&ProjectId=39http://www.nhpcindia.com/projectdetail.htm?CatId=1&ProjectId=41http://www.nhpcindia.com/projectdetail.htm?CatId=1&ProjectId=14http://www.nhpcindia.com/projectdetail.htm?CatId=1&ProjectId=38http://www.nhpcindia.com/projectdetail.htm?CatId=2&ProjectId=13http://www.nhpcindia.com/projectdetail.htm?CatId=2&ProjectId=29http://www.nhpcindia.com/projectdetail.htm?CatId=2&ProjectId=32http://www.nhpcindia.com/projectdetail.htm?CatId=2&ProjectId=33 -
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PERFORMANCE APPRAISAL
%anagement
P% '( )*+,%
*-- *./*0 ./ * )% ( (' % *05* .+6 %
% *05* .+6 % % * .( (' %)-0( %%/ Performance appraisal
or merit rating is one of the oldest and most universal practices of .+
% 9( : /-( , "ormall including both the
uantitative and ualitative aspects of job
performance. P% '( )*+,% *-- *./*0 can be an
effective instrument for helping people
grow and develop in organizational
setting. Through a ?ell organized appraisal
s stem. An emplo ee can create learning
spaces for himself in an organization.
7ffectivel practiced and development
oriented performance appraisal =Review s stem, substantiall contribute to the
organization health. Organization cannot do
awa with PERFORMANCE
APPRAISAL . +ome form of assessment of
performance on a continuing basis is essential for
http://www.nhpcindia.com/projectdetail.htm?CatId=5&ProjectId=56http://www.nhpcindia.com/projectdetail.htm?CatId=5&ProjectId=57http://www.nhpcindia.com/projectdetail.htm?CatId=5&ProjectId=58http://www.nhpcindia.com/projectdetail.htm?CatId=5&ProjectId=65http://www.nhpcindia.com/projectdetail.htm?CatId=5&ProjectId=66 -
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survival as well as growth of an organization. !f and develop ardsticks to measure it, if ou
want to improve performance. The performer has to be able to understand it.
P% '( )*+,% *-- *./*0 is a s stematic appraisal of the emplo ee-s personalit traits and
performance on the job and is designed to determine his contribution and relative worth to the
firm.
A formal definition of performance appraisal is that, it is the s stematic evolution of the
individual with respect to his or her performance on the job and his or her potential for
development
Performance appraisal is a formal structured system of measuring and evaluating an
employees job, related behaviors and out comes to discover how and why the employee is
presently performing on the job an how the employee can perform effectively in the future so
that the employee, organization and society all benefit.
U+ % -% '( )*+,% *-- *./*0; we evaluate not onl the performance of a worker but also his
potential for development.
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COMPONENTS OF APPRAISAL EVALUATION
As we have seen performance evolutions can be made a verit of reasons6 counseling,
promotion, research, salar , administration or a combinations of these therefore it is necessar
to begin b stating ver clearl the objectives of the evolution program. #aving done this, the
personal evolution s stem should address the uestions, who, what, when, where, howE Of
performance appraisal
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This approach has its disadvantage that the individual ma rate himself e5cessivel high then it
would be if his superior rated him. %an companies use rating committees to evaluate
emplo ees. These committees consist of supervisors, peers, and subordinates.
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&nder how the compan must decide what different methods are available and which of these
ma be used for performance appraisal. *ased on the comparative advantages and
disadvantages it is decided which method suit the propose best.
PURPOSE OF PERFORMANCE APPRAISAL
To create and maintain a satisfactor level of performance.To provide information making decision for rewardingl of retrenchment etc.To guide the job changes with the help to continuous ranking.To contribute to the emplo ee growth and development through training, self and
management development program.To facilitate for testing and validating selection tests, interview techni ues through
compeering there scores with performance appraisal ranks.To facilitate fair and e uitable compensation based on performance.To help the superiors to have proper understanding about their subordinates.
OBJECTIVE OFPERFORMANCE APPRAISAL
A good performance appraisal has following objectives:6#elp emplo ee to Jrishak *harti $ooperative td. #is weaknesses, and improve his
strengths, and thus enable him to improve his performance and that of the department.)enerate ade uate feedback and guidelines from the reporting officers to the emplo ee.
$ontribution to the growth and development of the emplo ee thru helping in realistic
goal setting#elp identif ing emplo ees for the porpoise of motivating, training and developing them.)enerate significant relevant, free and valid information about emplo ees thus good
performance appraisal and review s stem should primaril focus on emplo ee development
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METHODS OF APPRAISAL
*roadl all the approaches to appraisal can be classified into:6
P*/ >( .%+ % ? Rating scales $hecklist Korced choice method Korced distribution Annual confidential report 7ssa method $omparative evolution approach Ranking method
F5 5 % @ ( .%+ % ? %anagement b objectives Ps chological appraisals Assessment center
METODS OF PERFORMANCE APPRAISALS
P*/ O .%+ % M% ( /
R* .+6 /,*0%/?This is the simplest and the most popular techni ue for emplo ee performance. The
t pical rating H scales s stem consists of several numerical scales, each representing job
related performance criterion such as dependabilit , initiative output, attendance, attitude,
co6operation and the like. 7ach scales ranges from e5cellent to poor. The rater checks the
appropriate performance level on each criterion, and then computes the emplo ees total
numerical scores. C %,:0./ ?
!n this method, the raters don-t evolutes emplo ee performance, he supplies reports about
it and the personal department does the final rating a series of uestion are presented
concerning and emplo ee to his behavior. The rater, then, to indicate if the answer to a
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uestion about an emplo ee in positive or negative. )enerall , the uestions are on
esLno pattern. A++5*0 ,(+'. %+ .*0 %-( )% (
!n this method each emplo ee is rated confidentiall b one or more senior officers for
his performance. The report deals with the ears work and general opinion of the rater
towards the emplo ee. The main problem with his method is that it is not data based andthe appraisal is done the bases of impression.
E//* )% (!n the essa method, the rater must describe the emplo ee with in a number of broad
categories such as6a( The rater-s overall impression of the emplo ee-s performance
b( The promo abilit of the emplo eec( The jobs that the emplo ee is now able or ualified to performd( The strength and weaknesses of the emplo ee and the traning and the development
assistant re uired the emplo ee. C()-* * . % E (05 .(+ A-- (*, %/
These are a collection of a different methods that compare one worker-s performance
with that his L her co6workers. +upervisors usuall conduct comparative appraisals. As
these appraisals can results in a ranking from best to worst the are useful on deciding
merits6pa increases promotions and organizational rewards. ?e can classif it into6* R*+:.+6 )% (
!n this, the superior his or her subordinates in the order of there merits starting from the
best to the worst,. This method is subject to the hallo and Recenc effects, although
ranking b two or more raters can be averaged to help reduce biases. !t advantages
include ease of administration and e5planation.
3"! DEGREE PERFORMANCE APPRAISAL
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THE POST APPRAISAL INTERVIEWThis interview provides the emplo ee the feedback information, and an opportunit to the
appraiser to emplo ee his rating, the trail and behavior he has taken into consideration
etc.Kurther it helps both the parties to review standards, set new standards based on the
realit factors and helps the appraisal to offer his suggestion, help, guide and coach the
emplo ee for his advancement.
EY ELEMENTS OF PA SYSTEMS
1 P% '( )*+,% I)- ( %)%+ ?> Performance feedback allows the emplo ee, manager, and personnel specialists
to interview with appropriate action to improve performance.2 C()-%+/* .(+ A 5/ )%+ /?>
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Performance evaluations help decision H makers determine who should receive
pa raises.%an firms grants part or all of their pa increase and bonuses based upon merit,
which is determine mostl through performance appraisal.3 P0*,%)%+ D%,./.(+/?>
Promotions, transfers, and demotions are usuall based on past on anticipated
performance.4 T *.+.+6 *+ D% %0(-)%+ N%% /?>
Poor performance ma indicate the need for retraining. ikewise, good
performance indicates untapped potential that should be developed.
C* %% P0*++.+6 A+ D% %0(-)%+ ?> Performance feedback guides career decisions about specific career paths.
" I+'( )* .(+ I+*,,5 *,.%/?>
Poor performance indicate errors in job anal sis information-s human resource plan, or other parts, or the personal management information-s s stems. Reliance on
inaccurate information ma have led to inappropriate hiring, training, or counseling
decisions.7 J( D%,./.(+ E ( /?>
Poor performance ma be a s stem of ill6conceived job designs. Appraisals help
diagnose these others.8 E 5*0 E)-0( )%+ (--( 5+. ?>
Accurate performance appraisals that actuall measure job6 related performance
ensure that internal placement decisions are not discriminator .
P% '( )*+,% A-- *./*0 ./ * N.+%>S %- P (,%//?
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A % F. / / *6%; performance standards are established based on job description and
job specification. The standard should be clear, objective and incorporate all the factors.T % S%,(+ / *6%, is to inform these standards to all the emplo ees including appraisers.
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T % T . / *6% is following the instruction given for appraisal measurement of
emplo ee performance b the appraisers through observations interview, records and
reportsT % F(5 / *6% is finding out the influence of various internal and e5ternal factors on
actual performance.
T % F.' / *6% is comparing performance with that of other emplo ee and previous performance.T % S. / *6% is comparing the actual performance with the standards and finding out
deviations.T % S% %+ / *6% is communicating, the actual performance of the emplo ee and other
emplo ees doing the same job and discusses with him the reasons for positive or negative
deviations from the preset standards as the case ma be.
T % E.6 / *6% is suggesting necessar changes in standards, job anal sis internal ande5ternal environment.T % N.+ / *6% is fallow up performance appraisal report. This stage includes guiding,
counseling coaching and directing the emplo ee or making arrangements for the training
and development of the emplo ee.
WHY APPRAISAL TECHNI#UES PROVE FAILURE
Performance appraisal techni ues techni ues have often failed to give a correct assessment of
the emplo ee. The causes of such failure are:6
1 The supervisor pla s dual and conflicting role of the both the judge and the helper.2 Too man objectives often cause confusion.3 The skills re uired for dail administration and emplo ee development are in conflict.4 Poor communication keeps emplo ees in the dark about what is e5pected of them.
There is the difference of opinion between a supervisor and a subordinate concerning the
liter-s performance." Keedback on appraisal is generall unpleasant for both supervisor and subordinate
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LITERATURE REVIEW ON PERFORMANCEAPPRAISAL
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B%+ .,:; M ; E6*+; M & L(' %0); S 2!!1 H performance appraisal system ; V(0 24 N( 2; --1!>2This article-s focus on the &+ workplace. Organizations can benefit from performance appraisaloffering diversit training to emplo ees. That is, training emplo ees to respect others and not to act in adiscriminator manner towards fellow emplo ees.
M,G %6( ; L 2!!! !areer "evelopment #nternational V(0 N( 4$ ; -- 244>24This article presents two models of mentoring. The traditional view of mentoring is facilitatedmentoring where the more e5perienced person 'mentor( acts as a role model for the less e5perienced
person 'mentee(. Another approach is also offered H guided learning. A more e5perienced co6worker uses guided learning to teach a less e5perienced worker new skills.
T* 0( ; W 2!! $he %ge ; M C* %% S%, .(+; - 11; 2"$11$2!!This paper outlines the e5periences of two e5ecutive women in developing an internal mentoring
program. The e5periences demonstrate that the mentoring relationship not onl benefits the mentees but also the mentor
?hile the increased demand for e5ecutive coaching in the marketplace has opened up, the increasingnumber of coaches of ever t pe, training, and perspective has also grown '*rotman et al., /00;M oo,3442M Jampa6Jokesh, = Anderson, 344/M ?as l sh n, 3449(. !t is surprising that with the increaseduse of e5ecutive coaching and the rising number of coaches, there has not been a professionalassociation formed to develop and monitor the standards, re uirements, and competenc validationsolel for e5ecutive coaches '*rotman et al., /00;M !$K, 344>M ?as l sh n, 3449(. This need has
brought reactions from e5ecutives, coaches, and clients who suggest standardized methods.
75ecutives have recognized the significance of e5ecutive coaching in their professional performance, both personall and organizationall '7ffron et al., 3442M oo, 3442M Jampa6Jokesh, = Anderson,344/M Turner, 344>M ?as l sh n, 3449(. @uring the beginning ears of e5ecutive coaching, it was seenas an e5ecutive crutch to assist non6performers. Toda , e5ecutive coaching is looked upon as anecessar tool and in some cases reserved onl for senior e5ecutives ' oo, 3442M Jampa6Jokesh, =Anderson, 344/M +tevens, 3442M Turner, 344>M ?as l sh n, 3449(. One reason for the about faceattitude could be the value e5ecutive coaching brings as a Ntime6outN break, from the un ieldingdemands of the corporate world, for inner6thought, assessment, positive criticism, and a co6
development of strategies '*acon = +pear, 3449M *rotman et al., /00;M oo, 3442M Jampa6Jokesh =Anderson, 344/M Jilburg, /00>aM Orenstein, 3443M +tevens, 3442M Turner, 344>M ?as l sh n, 3449(.
One of the premier uses of e5ecutive coaching is to deliver Njust6in6timeN strategies for increasing one s personal performance and effectiveness b transforming weaknesses into strengths '*acon = +pear,3449M Jampa6Jokesh, = Anderson, 344/M Jilburg, /00>aM Orenstein, 3443M ?as l sh n, 3449(. @ue
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to this increase in personal RO!, corporate America is enamored with e5ecutive coaching and the benefits it has brought in recent ears '*acon = +pear, 3449(.
?ith man corporate incomes decreasing over the past few ears, corporations have reevaluated their training and development practices, to include the use of e5ternal sources ' oo, 3442M Jampa6Jokesh,= Anderson, 344/M Turner, 344>M ?as l sh n, 3449(. As a result, e5ecutive coaching focuses onensuring alignment with corporate strateg '*luckert, 3442bM *rotman et al., /00;M 7dwards, 3449M
evinson, /00>M oo, 3442M Orenstein, 344>M Peterson, /00>M +aporito, /00>M Turner, 344>(. !n thischanging corporate setting, e5ecutive coaching must be used in a laser6focused manner, rather than aliberall used improvised solution 'Orenstein, 344>(. Those corporations who have identified the needand usefulness of e5ecutive coaching have created an inner coaching environment to facilitate coachingthrough internal coaches 'Turner, 344>(.
!t is in the new corporate coaching culture of companies emplo ing their own coaches 'internal( wherethe chemistr of the coaching relationship takes a back seat to replicable measures in the coaching
protocol ' oo, 3442M Jampa6Jokesh = Anderson, 344/M +tevens, 3442M Turner, 344>M ?as l sh n,3449(. The internal coach, unfortunatel , finds him or herself in a dilemma of possibl losing one of hismost prized outcomes, which is, assisting clients to become masters of change management'?as l sh n, 3449(. Another downturn of this NcommoditizationN of e5ecutive coaching is to put alimit on the use of coaching, and to what e5tent, documenting the benchmarks, stages, and action steps.@oing so, realisticall , diminishes the coaching process to a cookie cutter approach including a presetnumber of sessions and strategies rather than a co6developed strategic plan developed over the courseof an ongoing relationship. ' oo, 3442M Jampa6Jokesh = Anderson, 344/M Turner, 344>M ?as l sh n,3449(
PERFORMANCE
MANAGEMENTSYSTEM
IN
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PERFORMANCE MANAGEMENT SYSTEM IN NHPC
T % / / %) ./ . . % .+ ( 9( -* /?
P* A? % R%/50 A %* RA /
P* B? S:.00$ C()-% %+, A//%//)%+
D%'.+. .(+ (' P% '( )*+,% @efinition of Performance in %AP is based upon Je Result Areas or JRAs and Routine
Responsibilities. Q JRAs are Ncritical outcomes towards which effort is directed to achieve desired business
results.N Q Routine Responsibilities are Fsignificant on6going tasks or outcomes that are undertaken or
delivered on a da 6to6da basis.G
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&ni ue Role and Responsibilit '&RR( templates provide the JRAs, relative weight of JRAs
and Routine Responsibilities, the $ompetencies and their re uired Proficienc evels for a role.The &RR Template in %AP helps deliver consistenc and clarit on e5pected performancemeasures to Appraisees and Appraisers alike.
%AP allows the Appraisee to define the performance measures applicable to the Appraisee ssituation using a combination of JRAs and Routine Responsibilities.
The achievement against targets set for each of these will together constitute the Appraisee-sPerformance Plan in the Performance $ cle or Period.
P% '( )*+,% C ,0% * * G0*+,%
A Performance $ cle refers to the ear for which our performance is being evaluated. ThePerformance $ cle of %AP is one ear coinciding with "#P$ financial ear.
%AP follows an April to %arch c cle and consists of three ke phases:
/. Performance and @evelopment Planning
3. %id ear Review
9. Kinal Review
The figure below provides an overview of the Performance $ cle with ke dates for each phase.
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PERFORMANCE AND DEVELOPMENT PLANNING
Performance Planning Phase of %AP is initiated in the month of %arch upon the finalization of thedraft budget for "#P$. The targets finalized for the &nit, Product )roup, @epartment andconse uentl the +ection will serve as the starting point for an individual to do his PerformancePlanning.@iscussion with AppraiseC %* .+6 % P% '( )*+,% & D% %0(-)%+ P0*+ P&DPThe Performance Plan of an individual essentiall consists of one section H JRAs. This is theessential component of an Performance Plan and the individual is e5pected to fill in this sectionadhering to all guidelines in order to be able to submit his plan to his Appraiser.
1 S%0%, .+6 % RA/The Appraisee will select relevant JRAs from the JRA %aster of his function 'i.e. the function towhich he has been mapped(. A minimum of si5 and a ma5imum of fifteen JRAs can be selected.'ma5. /2 from own JRA %asterM 2 optional which can be taken from JRA %asters of other functionsso as to ensure that the total no. of JRAs per plan does not e5ceed /2(.
2 T* 6% S% .+6 *+ A, .(+ P0*+/ '( RA/Kor each JRA, 2 levels of performance must be defined b the Appraisee that uantif the e5tent of achievement in a given timeframe ' 2 being the best and / being the lowest level of performance(
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Along with these, the Appraisee will develop an Action Plan consisting of specific steps re uired toachieve the target for each JRA.
3 A//.6+.+6 W%.6 *6%The Appraisee will propose weight ages between 2S and 32S for each JRA. The total weight age for JRA '$( should be e ual to or more than the %inimum ?eight age for JRA'$( prescribed for therelevant &RR to which the individual has been mapped. The total of all JRA weight ages should addup to /44S. %a5imum limit of weight ages have been suggested for all JRAs across all functions for all the categories of &RRs. 75ecutives while assigning weight ages to the JRAs selected b them intheir plan cannot e5ceed the ma5imum permissible weight ages specified against each JRA. This isensured through inbuilt s stem checks.
T % P&DP ./ +(9 %* '( /5 ).//.(+
O *.+ A-- *./% / *+ R% .%9% / S.6+>(''
After creating his P=@P, the Appraisee will submit his plan to his Appraiser. !f the Appraiser wishesto modif the plan, he will discuss the same with the Appraisee and make the necessar modifications.Thereafter, the Appraiser will forward the Performance Plan to the Reviewer for final sign6off. !n casethe Reviewer wishes to modif the plan, he can make the re uired modifications in the Plan after discussing with the Appraisee and Reviewer and then grant final approval.
MID YEAR REVIEW
%id ear Review is an interactive feedback session between the Appraisee and Appraiser, conductedduring the month of October for the half6 ear ended +eptember 94. !t is a mid6c cle process for reviewing and tracking achievements thus reducing the scope for ear6end surprises.
%id ear Review begins with the Appraisees- +elf6Appraisal. !n his self6appraisal, the Appraisee willcomment on hisL her current level of achievement on JRAs, which will then be discussed with theAppraiser for his feedback and inputs. @uring this phase, the Appraisee also identifies both
behavioral and functional competencies for his @evelopment.
M. Y%* R% .%9 P (,%//
+ubmits
FINAL REVIEW
Appraise does selfreview of KRAs &
identifiesCompetencies for
Development
Mid Year Review
Completed
Appraiser giveshis comments &
feedback
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The Kinal Review Phase will begin with the Appraisees- self6appraisal wherein heLshe gives theassessment of Target Achievement on each JRA defined in the Performance Plan 'Part6A(.The Appraiser will review the outcomes of self6appraisal and give his own assessment of theachievement of the targets in the performance plan for each JRA. !n addition, he will also give hisassessment on the +killsL $ompetencies defined in Part *.
F.+*0 R% .%9 P (,%//
+ubmits
OR Rejects After @iscussion
After appraisal b Appraiser, the plan will come back to the Appraisee for his acceptance of theassessment done for JRAs 'the assessment of Part * will not be visible to the Appraisee(. !f theAppraisee feels that his Appraisers Assessment is correct, he can IAccept- and forward it to hisReviewer. #owever, in case of an issues regarding the assessment, the Appraisee can re uest for aN@iscussionN with his Appraiser. After the discussion, the Appraiser will finalize his assessment andsend it back to the Appraisee. The Appraisee at this stage can either -Accept- the assessment or IReject- it. !n either case the plan will go to the Reviewer with the appropriate message for his finalassessment.The Reviewer will then give his assessment on the JRAs which will form the basis for calculation of the $onsolidated +core of %AP for the individual. #e will also give his assessment on the+killsL$ompetencies specified in Part *.
INITIATING $ REVIEWING OFFICER
Appraiseegets to see
Appraisers
Assessment
of KRAs
Reviewer
Gives inal
Assessmenton KRAs &
!art"#
Appraiser
gives his
assessment of KRAs & !art #
$endsback Appraisee
Does $elf
Assessment
of KRAs
OR
Re%ectsafter
disc ssion
Re' ests Disc ssioninal Composite $coregets calc lated in thes(stem after allotting
weight ages to !art"A and!art #) also taking into
acco nt Ded ction of Marks for *ate
$ bmission of !art"A) if an(
Acce ts
inal $core of !art"Ais comm nicated to
Appraisee along withskill+competencies for
development,
Accepting A thorit(-!G+ nction .eador /nit .ead) as thecase ma( be0 doesinal Assessment of
!art #
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)enerall , the Appraisal will be written b an officer called the N!nitiating OfficerN, reviewed b asuperior officer called the NReviewing OfficerN and accepted b the ne5t higher officer called theNAccepting OfficerN. #owever, in respect of the personal staff attached to )eneral %anagersL #eads of @epartmentsL@irectorsL$hairman and %anaging @irector, !nitiating, Reviewing and Accepting Officer will be the same.The !nitiating L Reviewing L Accepting Officers for emplo ees in various level of Appraisee will be as
under:
TOOLS
OF
PERFORMANCE APPSAISALThe following tools are used in the PA.
/. Rating +cales.
3. $ompetencies and development plan.
1 RATING SCALES
Level of Appraise InitiatingO cer
ReviewingO cer
AcceptingO cer
W-0 toW-10E-1 E-2/2A E-3
S-1 to S-4 E-1 E-2/2A E-3
E-1 E-2/2A E-3 E-4E-2 E-3 E-4 E-5
E-3 E-4 E-5 E-6
E-4 E-5 E-6 E-7
E-5 E-6 E-7 E-8
E-6 E-7 E-8 E-9
E-7 E-8 E-9 Director
E-8 E-9 Director CMD
E-9 Director CMD CMD
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Performance defined in %AP will be evaluated using 26point Rating +cales. These Rating +cales will be used to assess the e5tent of accomplishment on JRA Targets, Routine Responsibilities and$ompetencies.
One common scale will be used for assessing accomplishment on JRAs and Routine Responsibilities,while another scale will be used for assessing accomplishment on $ompetencies.
R* .+6 RA/ *+ R(5 .+% R%/-(+/. .0. .%/
JRAs and Routine Responsibilities have a 26point scale where each rating has been articulated ande5plained.
R* .+6 C()-% %+,.%/
The 26point Rating +cale for $ompetencies is different from the one used for JRAs and RoutineResponsibilities.
The Appraisee will be evaluated on all $ompetencies in the &RR using the $ompetenc +cale.
7ach Rating on the scale has been articulated to describe the e5tent to which an Appraisee hasdispla ed the behaviors described in the re uired Proficienc evel of the $ompetenc .
*ased upon the behaviors observed, the Rating that best describes the set of displa ed behaviors ischosen as the Rating on that $ompetenc .
2 COMPETENCIES AND DEVELOPMENT PLAN
C()-% %+,.%/
$ompetencies are skills and abilities described in terms of behaviors that are coachable, observable,measurable and critical to individual performance skills.
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$ompetencies form the foundation of FwhatG capabilities are re uired for the successful e5ecution of roles and responsibilities, thereb driving functional, unit and organization performance.
P* B> S ILL$ COMPETENCY ASSESSMENT
The O %, . % of Part * is to assess the +killsL $ompetencies possessed b individuals and factor in
this assessment for the purpose of Promotion decisions.
There are two sets of +killsL $ompetencies mapped to different levels of e5ecutives as follows:
7/A to 72 +killL $ompetenc +et6/
7> = 71 +killL $ompetenc +et6 3
The weighted average score of Part6A and Part6* will give the $omposite +core of the individual for that ear which will be reckoned for promotion purposes onl . The following weight ages operate
between Parts6A 'JRAs( and Part6* '+kills and $ompetencies( while calculating the $omposite +core:
LIST OF S ILLS$COMPETENCIES TO BE ASSESSED FOR EXECUTIVES
IN GRADES E1A TO E
O+ * /,*0% (' 1 ( @ %.+6 % %/ *+ 1 % 0(9%/
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SN S ILLS$ COMPETENCIES
1 F5+, .(+*0 $ T%, +.,*0 +(90% 6% : Possesses knowledge related to function, understandsand appropriatel applies technical abilit related to functional L technical e5pertise.
2 L%* % / .-: %otivates = develops individuals. 7ncourages team members in decisionmaking.
3 I+ % -% /(+*0 R%0* .(+/ & T%*) -0* .+6? +ensitive to the needs and problems of others.$ollaborates with colleagues to seek solutions that are beneficial to the team. +upports others-contribution and helps in achievement of teams- goals.
4 A+*0 .,*0 * .0. ?@ispla s the abilit to anal se information and draw logical conclusions.
O-%++%// ( ,(+ .+5(5/ 0%* +.+6? Assesses and recognizes own strengths and weaknessesM pursues self6development.
" C())5+.,* .(+ : @ispla s skill to give and receive instructions accuratel M has abilit to present issues lucidl and share information with all concerned.
7 I+. .* . % & R%/(5 ,%'50+%//? Able to act effectivel L imaginativel to accomplish mission Mtakes initiative to solve problemsL improve processes.
8 A, .% %)%+ $ R%/50 ( .%+ * .(+?@ispla s zeal to achieve b aggressivel and passionatel pursuing targets which have a standard of e5cellence.
S%+/% (' R%/-(+/. .0. $ T%+*,. ? %eets targetsM shoulders responsibilit M minimal follow6up re uired.
1! #5*0. (' 9( :? @ispla s thoroughness, accurac and general e5cellence of output M produces work free from errorsM shows consistenc of output under var ing conditions.
11 C5/ ()% F(,5/ & S% .,% O .%+ * .(+ : @ispla s abilit to strive for success of bothinternal = e5ternal customers through high responsiveness and delivering value.
12 A ).+./ * . % $ E %,5 . % * .0. ?@ispla s * bilit to objectivel view administrativesituations and demonstrates courage in enforcing financial and personal disciplineM has abilitto appraise subordinates objectivel .
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SN
S ILLS$ COMPETENCIES
1 F5+, .(+*0 $ T%, +.,*0 +(90% 6% : Possesses knowledge related to function, understandsand appropriatel applies technical abilit related to functional L technical e5pertise.
2 L%* % / .-: %otivates = develops individuals. 7ncourages team members in decision
making.3 I+ % -% /(+*0 R%0* .(+/ & T%*) -0* .+6? +ensitive to the needs and problems of others.
$ollaborates with colleagues to seek solutions that are beneficial to the team. +upportsothers- contribution and helps in achievement of teams- goals.
4 A+*0 .,*0 * .0. ?@ispla s the abilit to anal se information and draw logical conclusions.
O-%++%// ( ,(+ .+5(5/ 0%* +.+6? Assesses and recognizes own strengths and weaknessesM pursues self6development.
" C())5+.,* .(+ : @ispla s skill to give and receive instructions accuratel M has abilit to present issues lucidl and share information with all concerned.
7 I+. .* . % & R%/(5 ,%'50+%//? Able to act effectivel L imaginativel to accomplish missionM takes initiative to solve problemsL improve processes.
8 A, .% %)%+ $ R%/50 ( .%+ * .(+?@ispla s zeal to achieve b aggressivel and passionatel pursuing targets which have a standard of e5cellence.
S%+/% (' R%/-(+/. .0. $ T%+*,. ? %eets targetsM shoulders responsibilit M minimal follow6
up re uired.1! #5*0. (' 9( :? @ispla s thoroughness, accurac and general e5cellence of output M
produces work free from errorsM shows consistenc of output under var ing conditions.
11 C5/ ()% F(,5/ & S% .,% O .%+ * .(+ : @ispla s abilit to strive for success of bothinternal = e5ternal customers through high responsiveness and delivering value.
12 A ).+./ * . % $ E %,5 . % * .0. ?@ispla s * bilit to objectivel view administrativesituations and demonstrates courage in enforcing financial and personal disciplineM hasabilit to appraise subordinates objectivel .
13 D%,./.(+ M*:.+6 & F0% . .0. ? @ispla s * bilit to diagnose and anal se problems andgenerate effective solutions b taking practical and calculated decisionsM is open and fle5iblewhen re uired.
14 P0*++.+6 & O 6*+./.+6 : @ispla s abilit to plan d namicall and implement the same for achieving desired goals.
1 C %* . . & I++( * .(+? @evelops new insights into situationsM encourage new ideas andinnovationsM solves problems creativel .
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LIST OF S ILLS$COMPETENCIES TO BE ASSESSED FOR EXECUTIVES INGRADES E" &E7
COMPETENCIES
B5/.+%// E+ . (+)%+ +(90% 6%? Jnowledge and understanding of economic, legal,socio6political trends.
P ('%//.(+ S-%,.'., +(90% 6%? Jnowledge related to profession as a whole. Jnowledgewhich is determined b authorit = responsibilit of other positions, knowledge of mission, values and standard operating procedures, policies.
M*:.+6 B5/.+%// D%,./.(+/? &se business related data to sport effective and timel business decisions b + stematicall gathering relevant business information
!dentif ing the strengths and weaknesses of a particular business line Recognizingopportunities or threats and acting on them rapidl &sing business facts collected in daildecision making.
V./.(+? @evelop a vision for the future of the organization b : )rasping the meaning of trends = interrelationships between the organization and its environment at the local,national and international level !dentif ing fundamental values and beliefs to guide theorganization into the future.
S / %)* ., T .+:.+6? !dentif ing connections between situations that are not obviousl
related using common sense, past e5perience and basic rules to identif ke underl ingissues )enerating and testing hunches which ma e5plain comple5 situations or
problems.
N% 9( :.+6? To cultivate an informal network which ma help to get things done through@eveloping contacts with people outside of the immediate work &nit &sing networks as
a source of information = support.
O 6*+. .+6 R%/(5 ,%/? 7nsure that all financial, personnel andLor other resources are in place to meet needs b !dentif ing and ac uiring the resources. Allocating and utilizing
the resources in a timel and cost effective wa %onitoring and controlling all resourcesre uired to maintain the efficienc of operations.
I+/-. % P%(-0%? To generate a sense of purpose for the work done b the organizationinstilling enthusiasm, lo alt and commitment among team members at all levels of theorganization !nspiring, motivating and guiding others towards organizational goals andobjectives +etting an e5ample for others b behaving in wa s that are consistent withespoused beliefs and values and the organization-s vision and direction.
T%*) P0* % ? To contribute to group objectives in a team environment through
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$ooperating and interacting well with others $ontributing activel and full to team projects ?orking collaborativel as opposed to competitivel with others
Acknowledging diverse opinions, addressing relevant concerns and working towardsconsensual solutions that enhance the output of the team.
LIST OF VALUES TO BE ASSESSED FOR EXECUTIVES IN
GRADES E1 TO E7
VALUES
F*. +%//? @ecisions are made objectivel , free from patronage and reflect the just
treatment of emplo ees and applicants.T *+/-* %+, ? There is open communication about ever aspect of managerial decisionswhich concern people.
T 5/ ? Trustworthiness leading to confidence Allow staff the freedom to grow anddevelop Relate to others on the basis of mutual respect $ourage to stand b onesconvictions.
C*+ (5 ? Krank and forthright )ive and receive constructive criticismLsuggestionsopenl discuss performance deficiencies and take corrective action Appreciate good
performance *e consistent in words and deeds Kace up to ones mistakes.
C(00* ( * .(+? ?orking in tandem Open in sharing information and in seekingsuggestions L opinion +ensitive to concerns of others #onouring commitments
7ncourage team work across departments L functions.
I+ (0 %)%+ ? Total commitment *e dedicated and committed to work. *uildcommitment b encouraging wide participation in decision making process to thema5imum e5tent possible.
F0% . .0. ?Abilit to participate and adapt to changing circumstances using sound judgment Open to accepting new ideas ?illing to learn from an one and to do thingsdifferentl Prepared to operate and adapt to different environments.
W.00.+6+%// ( *,,%- , *00%+6%? *e willing to e5periment Allow for freedom to fail, butlearn from it too.
D./,.-0.+%? Adherence to accepted norms #onour promises and adhere to agreed s stemRespect for others time and space 75ercise self control.
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E .,*0 B% * .( ? @emonstrate honest and sincerit in ever action Appl sound business and professional ethics +how consistenc with principles, values and behaviors.
GENERIC ATTRIBUTES
L%* % / .- A .0. .%/?@emonstrates abilit Kor guiding collective decision making Kor succession planning $risis management and Abilit to take risks.
T%*) B5.0 .+6? @emonstrates effectiveness in re6organizing hisLher own department%anage diverse and divergent views and group processes without losing sight of
objectives.
A .0. ( 5.0 * / * %6., V./.(+? @emonstrates abilit to manage change Kocus onlong term issues strategic thinking Translate vision into goals.
B5/.+%// S%+/%? $ommitment to bottom line results b enhancing revenue generation baddressing interest of customers and stakeholders *alancing need for viable short andlong term performance Optimizing unitLorganization-s contribution while supportingcorporate objectives +potting and pursuing new business opportunities wherever possible.
C())5+.,* .(+ /:.00/ ? $ommunicate ideas and information effectivel and market ke points effectivel through public speaking and presentation Abilit to convert ideasthrough action plans and ensure acceptabilit within the organization and performance at*oard meetings
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T
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RESEARCH
METHODOLOGY
The research design inm case was
e5plorator researchdesign, which is also known Kormulate Research
@esign.
The main purpose of mstud was getting
the opinion of peopleregarding the
performance appraisal s stem and what arethe problems which are faced b theappraises and the appraisers.
The research design in m stud was fle5ibleto provide opportunities for considering
different aspects of the problem under stud .
TYPES OF DATA COLLECTED ?
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UPRIMARY? Kirst hand information was received from the emplo ees through uestionnaires and personal interviews.
USECONDARY : The data from internet was collected to get a better insight and the compan -smanual.
SIMPLE RANDOM SAMPLING?
+imple random sampling refers to the sampling techni ue in which each and ever item of the population is given e ual chance of being included in the sample.
Random sampling is sometimes referred to as R7PR7+7"TAT!B7 +A%P !"). !f the sample ischosen at random and if the sample is sufficientl large, it will represent all groups in the population. Arandom sample is also known as PRO*A*! !T +A%P 7 because ever item of the population hase ual opportunit of being selected in the sample.
S*)-0% /. %?
The sample size of m project is /4.
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elow 22 to 5
5 to 1010 #'o$e
0
20
40
60
80100
n#pc
I+ % - % * .(+? o t o t"e e lo%ee wor i (H)C *t+, More t"# 10 %e#r ,
2 , %o&r o i io er or # ce # r#i #l i
# E$#ltio o E lo%ee' )ro otio o E lo%eec Moti$#tio
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0102030405060708090
opinion
I+ % - % * .(+?90: o e lo%ee; o i io t"#t er or # ce # r#i #l i E$#ltio
o E lo%ee # + 10: t"i t"#t it i oti$#tio ,
,3 Are %o& #w#re o t"e er or # ce # r#i #l tec" i
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4- W"#t i %o&r o i io # to t"e re e t # r#i #l % te
# >&ll% #ti ?e+
' @#ti ?e+c C# ;t #%
>&ll% #ti ?e+ @#ti ?e+ C# ;t #%
I+ % - % * .(+?30: e lo%ee &ll% #ti ?e+ wit" re e t # r#i #l % te B 60:#re #ti ?e+ wit" t"i % te # + 10: e lo%ee c# ;t #% # %t"i ! #'o&t )A
% te ,
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5-W"#t i %o&r erce tio # to t"e re
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6- co ti &o& # r#i #l w"#t "o&l+ 'e t"e !# 'etwee two # r#i #lerio+
# rterl%' H#l e#rl%c e#rl%
10: rterl%30: H#l e#rl%60: e#rl%
I+ % - % * .(+? 60: e lo%ee; w# t t"e er or # ce # r#i #l erio+ "o&l+ 'e
%e#rl% # + 30: w# t "#l %e#rl%,
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7-Do %o& t"i t"#t er or # ce o e lo%ee i ro$e # ter t"e roce oer or # ce # r#i #l
# e' (o
%e o0
102030405060708090
100
I+ % - % * .(+?All e lo%ee t"i t"#t er or # ce o e lo%ee i ro$e # ter t"eroce o er or # ce # r#i #l,
8- )er or # ce # r#i #l "el t"e or!# i #tio i #c"ie$i ! !o#l
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# e' (o
I+ % - % * .(+?90: o t"e e lo%ee t"i t"#t )er or # ce # r#i #l "el t"eor!# i #tio i #c"ie$i ! !o#l # + 10: t"i t"#t )er or # ce # r#i #l ot"el t"e or!# i #tio i #c"ie$i ! !o#l,
9-Do %o& t"i er o #l 'i# cree i w"ile # r#i i ! # i +i$i+l
# e ' (o
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70:%e 30: o0
10
20
30
40
50
60
70
I+ % - % * .(+?70: o e lo%ee t"i t"#t er o #l 'i# cree i w"ile # r#i i !
# i +i$i+l # + 30: ot #!ree,
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90:%e 10: o0
10
20
30
40
50
60
70
80
90
100
I+ % - % * .(+? (H)C 90: o e lo%ee; #ti ?e+ wit" t"e re e t er or # ce
# r#i #l % te 10: o e lo%ee; ot #ti ?e+ .
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100:%e 0: o0
1020304050
60708090
100
I+ % - % * .(+?100: o e lo%ee; t"i t"#t re e t % te i e ecti$e / 'etter
t"# t"e re$io& # r#i #l % te ,
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80:%e 20: o0
10
20
3040
50
60
70
80
I+ % - % * .(+?80: e lo%ee; #% t"#t t"e% ot recei$e # % or #l ee+'#c
re!#r+i ! %o&r er or # ce # + 20: e lo%ee; #% t"#t t"e% recei$e or #l
ee+'#c ,
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90:%e 10: o0
10
20
30
40
50
60
70
80
90
I+ % - % * .(+? 90: e lo%ee; #i+ t"#t te #re t# e to i ro$e t"e
er or # ce,
LIMITATIONS
ittle co6operations of some person due to conservative mind.
+ome people have no time to give answer.
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+ometimes peopledo not tell truthand fill it justfor fun sake.
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CONCLUSION
Krom the research it has been concluded that most of the e5ecutives who are not satisfied with the present performance appraisal s stem.
Appraisers give proper feedback to their appraises on da toda basis and proper training or challenging tasksare given to improve their performance. mainl the formal training is given at the time of joining the
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organization but if the emplo ees face an problem later at the time of their job, their superiors help them inresolving their problems at the same time.
*ut some appraises feel that the are not given proper feedback and even the don-t want an feedback as thethink that the know their work ver well.
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SUGGESTIONS
P ( 0%) '*,% *-- *./%
ack of feedback. ack of effectiveness metrics
Allocating time for appraisal. Assessment techni ues should be proper.
S566%/ .(+ */ *+ *-- *./%%
"o personal bias involves. Online submission.
Kre uentfeedback b
appraiser. Proper
communication.
S566%/ .(+ */ *+ *-- *./%
Yero biasness. Training for appraiser. Providing performance feedback. Assessment as per output onl .
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#UESTIONNAIRE
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! 5-10" 10 # + #'o$e
2 , %o&r o i io er or # ce # r#i #l i
+ E$#ltio o E lo%eee )ro otio o E lo%ee
Moti$#tio
,3 Are %o& #w#re o t"e er or # ce # r#i #l tec" i
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+ (o
9-Do %o& t"i er o #l 'i# cree i w"ile # r#i i ! # i +i$i+l
# e ' (o
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