gas authority of india limited-original####

8/12/2019 Gas Authority of India Limited-Original####

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Chapter-1

1.1 A PROFILE

Gas Authority of India Limited

(GAIL) is one of the outstanding

public sector enterprises (PSEs) in

the country today. It is one of the

a!aratna" enterprises and ran#s

among the top ten companies in

India. $uring %&&&' * the company registered a turno!er of

+s.,-.% billion /ith net profits of +s.,.0% billion.

Gas transmission and distribution forms the bul# of GAIL"s businesstoday follo/ed by gas processing for LPG production and production

of petrochemicals.

1he company operates o!er - 23 of pipelines in all four regions of

the country supplying about 0 million cubic meters (33S43) of gas

per day as fuel to po/er plants for generation of o!er - 35 of

po/er* as feedstoc# for gas based fertili6er plants to produce about %

331PA of urea* and to o!er % other industrial units to meet their

energy and process re7uirements. Gas throughput during %&&&'

/as to the tune of 0 . 8 33S43$ as against 8.8 33S43$ of the

preceding year.

GAIL /as established by Go!ernment of India in August %&,- for

handling post'e9ploration acti!ities relating to atural Gas* /ith the

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ob:ecti!e of accelerating and optimi6ing the effecti!e and economic

use of atural Gas and its fractions to the benefit of national economy.

5ithin a period if %0 years* GAIL has emerged and maintained its

position as the o.% Gas 4ompany in India. It has /on the E9cellent

Performance A/ard for the past fi!e years consecuti!ely* and safety

a/ards from the ;il Industry Safety $irectorate (;IS$) and a6ira and along the >


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the consumers in these regions. GAIL is also /or#ing in se!eral

directions li#e gas imports* L G and E9ploration and Production to

increase the a!ailability of gas.

1.3 TELECOM

GAIL has recently entered the 1elecom sector as a ser!ice pro!ider for

the basic operators. It has already signed memorandum of

understandings (3;Bs) for the :oint operations /ith Po/er Grid

4orporation of India Ltd. 5ith this* the combined e9isting and

proposed net/or#s of the t/o companies /ould be the largest

operati!e long distance net/or# in the country after $o1. 1he

a!ailability of such integrated net/or# /ould enable basic* cellular*

Internet Ser!ice pro!iders and long distance operators to establish and

commence operations at the earliest and at the same time pro!ide

higher degree of reliability to their operation.

It has already signed 3;Bs /ith four ma:or 1elecom operators for

leasing band/idth capacity. 1hese are


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of its net/or# to set up capacity hubsCband/idth capacity e9changes.

1his /ould entail an in!estment of about +s.% crore.

As part of the first phase* GAIL /ould connect more than @ ma:or

cities in orth and 5estern part of the country. 1hese /ould include

cities in 3aharashtra* Gu:arat* +a:asthan* >aryana* $elhi* Bttar

Pradesh and 3adhya Pradesh. 1he second phase /ould co!er more

than 8 cities spread o!er eight states in the orth'5est region. At the

end of this phase* GAILs net/or# /ould be spread o!er 0 #m.*/ould connect three metros and four mini'metros and /ould pro!ide

connecti!ity to &8 cities in the country.

1.4 JOINT VENTURES

MAHANAGAR GAS LIMITED (MGL) A :oint !enture /ith


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1.5 FINANCIAL OPEARTIONS

GAIL has been a consistently good performer and is hopeful of

maintaining its current performance trends. It has an authori6ed share

capital of +s.% billion of /hich +s.,.-0 billion has been paid up. 08.@

percent of the shares of the company are o/ned by Go!ernment of

India. $uring %&&&' * the company paid a di!idend of @ percent.

GAIL has achie!ed a turno!er of +s.,-% crore in %&&&' and a net

profit of +s.,0% crore.

Gross operation 3argin has increased to +s.%0 8 crore as compared to

+s.%-& crore of %&&,'&&.

GAIL"s engineers ha!e achie!ed up to %@ D capacity utili6ation at its

LPG plant and ha!e o!ercome ma:or challenges in pipeline /or#. 1hey

ha!e also maintained &&.&D pipeline a!ailability. GAIL"s tight pro:ectcontrol and monitoring systems ha!e enabled it to maintain its pro:ect

costs schedule and its financial systems ha!e enabled it to generate

internal resources from its initial stage of operations.

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1.5 HUMAN RESOURCE AND MANAGEMENT

At GAIL* >uman +esources 3anagement and $e!elopment is a core

functional and thrust area. $uring the last % years GAIL has e!ol!ed a

set of comprehensi!e >uman +esources Policies* Practices and

Systems.

1.5.1 Hum ! R"#$u%&" M'##'$!

1he >uman +esource 3ission of GAIL is to create a resourceful

en!ironment that shall be conduci!e to the sustainable gro/th of the

organi6ation through synergistic de!elopment of >uman +esources

and 1echnology /ith emphasis on indi!idual e9cellence and self'

de!elopment.

1.5.2 HR R"#" %&

1he 4ompany also underta#es studies from time to time (internally as

/ell as /ith the help of e9ternal e9perts) on issues relating to

employee satisfaction* 7uality of /or# life* internal customer

satisfaction etc.

1.5.3 S$&' * O+*', -'$!#

GAIL has been committed to the cause of upliftment and de!elopment

of the bac#/ard and underpri!ileged sections of the society. GAIL is

firm in its belief that 4orporates ha!e a ma:or responsibility in the area

of human /elfare specially in de!eloping countries li#e India and the

therefore the 4ompany supports se!eral Go!ernment sponsored social

/elfare and humanitarian programmes. 1he programmes are in the

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nature of infrastructural facilities* electrification and street lighting*

drin#ing /ater* health and sanitation* community de!elopment*

=ocational training etc.

1.5.4 T% '!'!, ! D"/"*$0m"!-

GAIL lays considerable stress on employee 1raining and $e!elopment

acti!ities and these are coordinated by a separate department under the

$irectorate of Personnel. 1he 1raining efforts are need focussed and

co!er in'house training programmes spread o!er a /ide range of

sub:ects as also e9ternal training including speciali6ed programmes

abroad.

5ith the ob:ecti!e of building up of its o/n in'house infrastructure*

GAIL has set up a Gas 1echnology Institute (G1I) /ith collaboration

of $anish Go!ernment at ;I$A (B.P).

G1I functions are the 4orporate >+$ and Synergy $epartment of

GAIL /ith mission to pro!ide sustainable gro/th opportunities to the

gas sector through synergistic de!elopment of human resource and

technology.

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GAIL S VISION

Be the Dominant Natural Gas Company with Significant

Global Presence, Integrate in !nergy an Petrochemicals"

1. Am0*' '& -'$! $ GAIL # V'#'$! E*"m"!-#

Dominant


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1. C$%" O%, !' -'$! * V *u"#

E- '

1hey are transparent* fair and consistent in dealing /ith all people.

1hey insist on honesty* integrity and trust/orthiness in all their

acti!ities.

P"$0*"

1hey belie!e that their success is dri!en by the commitment and

e9cellence of their people. 1hey attract and retain result'oriented

people /ho are proud of their /or# and are satisfied nothing less than

the !ery best in e!erything they do. 1hey encourage indi!idual

initiati!e by creating opportunities for their people to learn and gro/.

1hey respect the indi!idual rights and dignity of all people.

Cu#-$m"%

1hey stri!e relentlessly to e9ceed the e9pectations of their customers*

both internal and e9ternal. 1heir customers prefer them.

S %" $* "%#

1hey meet the ob:ecti!es of their shareholders by pro!iding them

superior returns and !alue through their in!estment in GAIL.

T"& !$*$,6

1hey belie!e technology is a #ey to the future success of their

organi6ation. 1hey ad!ocate use of best'in'class" technologies.

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Chapter-#

REVIE7 OF LITERATUE

2.1 7 - '# P"% $%m !&" A00% '# *8

Performance Appraisal is a system for achie!ing organi6ational goals

through the re!ie/ of employee performance against indi!idual or

group ob:ecti!es.

In a performance appraisal system ob:ecti!es are de!eloped for

indi!iduals or groups. 1hese ob:ecti!es are deri!ed from the

organi6ation s goals.

;n a regular basis* usually annually or half yearly* employee

performance is re!ie/ed against their ob:ecti!es. 1his occurs for t/o

reasons. irstly to determine areas /hich need de!elopment or further

learning. Secondly to re/ard employees for ob:ecti!es they ha!e met

and for areas /here their performance is good.

In simple terms performance appraisal may be understood as the

measurement of an indi!idual"s performance in a systematic /ay* the

performance being measured against such factors as :ob #no/ledge*7uality and 7uantity output* initiati!e* leadership abilities* super!ision*

dependability* co'operation* :udgment* !ersatility* health and the li#e.

Assessment should be confined to the past performance alone.

Potentials of an employee for the future must also be assessed.

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A formal definition of performance appraisal is Fit is the systematic

e!aluation of the indi!idual /ith respect to his or her performance on

the :ob and his or her potential for de!elopment .

A more comprehensi!e definition isH

FPerformance Appraisal is a formal* structured system of measuring

and e!aluating an employees :ob* related beha!iors and outcomes to

disco!er ho/ and /hy the employee is presently performing on the :ob

and ho/ the employee can perform more effecti!ely in the future so

that the employee* organi6ation* and society all benefit .

1he second definition includes employees" beha!ior as part of the

assessment.


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@. 1o assess the training and de!elopment needs of employees.

-. 1o decide upon a pay raise /here (as in the unorgani6ed sector)

/here regular pay scales ha!e not been fi9ed.

. 1o let the employees #no/ /here they stand and so far as there

performance is concerned and to assist them /ith constructi!e

criticism and guidance for the purpose of there de!elopment.

0. 1o impro!e communication. Performance Appraisal pro!ides aformal dialogue bet/een the superior and the subordinate* and

impro!es understanding of personal goals and concerns. 1his

can also ha!e the effect of increasing the trust bet/een the

appraiser and the appraisee.

8. inally* performance appraisal can be used to determine /hether

>+ programmes such* as selection* training and transfers ha!e

been effecti!e or not.

2.3 A00% '# * P%$&"##

1he abo!e figure outlines the performance appraisal process. Each

step in the process is crucial and arranged logically. 1he process as

sho/n in the abo!e figure is some /hat ideali6ed. 3any

organi6ations ma#e e!ery effort to appro9imate the ideal process*

resulting in first'rate appraisal systems. Bnfortunately* many others

fail to consider one or more of the steps and* therefore* ha!e less'

effecti!e appraisal systems.

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T " P"% $%m !&" A00% '# * P%$&"##.

2.4 O:JECTIVES OF APPRAISAL

;b:ecti!es of appraisal include effecting promotions and transfers*

assessing training needs a/arding pay increases* and the hi#e. 1he

emphasis in all these is to correct the problems. 1hese ob:ecti!es

are appropriate as long as the approach in appraisal is indi!idual.

Appraisal* in future* /ould assume systems orientation. In the

systems approach* the ob:ecti!es of appraisal stretch beyond the

traditional ones.

In the systems approach* appraisal aims impro!ing the performance*instead of merely assessing it. 1o/ards this end* appraisal system

15

O+9"&-'/"# $ - "P"% $%m !&" A00% '# *

A00% '#" P"% $%m !&"

E#- +*'# J$+ E;0"&- -'$!#

D"#',! ! A00% '# *P%$,% mm"

P"% $%m !&" I!-"%/'" RESPONDANTS

E9ecuti!e from le!el E'% to E'& /or#ing in the 4entres 1argeted.4. SAMPLING TECHNIBUE

Stratified +andom Sampling

If a population from /hich a sample is to be dra/n does not constitute

a homogeneous group* stratified sampling techni7ue is used in order to

obtain a representati!e sample.Bnder stratified sampling the

population /as di!ided into se!eral sub populations that are

indi!idually more homogeneous than the total population and then

selected the items from each stratum to constitute a sample. Since each

stratum /as more homogeneous than the total population* /e are able

to dra/ more precise estimates for each stratum and by estimating

more accurately each of the parts* /e get a better estimate of the

/hole. 1he follo/ing are the reasons for choosing stratified randomsampling methodH

%. 1he researcher /anted to get response from different people

in!ol!ed in the performance appraisal process such as +eporting

officer* +e!ie/ing officer* Accepting officer and the Appraisee.

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METHODOLOG@

26

START

P%$+*"m I "!-' '& -'$!

L'-"% -u%" R"/'" ADVERSE REPORT REMARKS

.0.% In the e!ent of the o!erall assessment being not satisfactory or

carrying some ad!erse remar#s* a communication /ill need to

be issued to the concerned employee after the report has been

accepted by the concerned authority.

.0. 1he ad!erse remar#s /ill be con!eyed to the concerned

employee by the Personnel $epartmentand this acti!ity shall becompleted by @ th ?une.

.0.@ An employee /ho may not be aggrei!ed by the ad!erse remar#s

in the A4+C Performance Appraisal as communicated to him

and /ho desires to prefer an appeal against the same /ill be

re7uired to follo/ the follo/ing procedureH

.0.- An employee aggrei!ed by ad!erse remar#s may ma#e an

appeal /ithin & days of the days of communiction.

.0. 1he appeal made by the employee shall contain briefly his

contention along /ith documentary e!idence* if any* in support

of teh same and shall be routed through proper channel. A copy

of the appeal made may be submitted to the Personnel$epartment.

.0.0 1he +eporting C 4ontrolling ;fficer shall for/ard the

appealalong /ith his remar#s to the +e!i/ing CAccepting

;fficer /ho in turn may gi!e his comments on the

representation made and for/ard the same to the Appellete

Authority /ithin one month of its receipt.

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.0.8 1he decision of the Appellete Authority /ill be communicated

to the employee concerned through proper channel /ithin a

period of three months of the date of receipt of the appeal.

CLARIFICATION

or the purpose of these +ules an ad!erse remar# /ould mean a

remar# /hich indicates the defects or defeciencies in the 7uality of

/or# or performance or conduct of an employee but does not include

any /ords in the nature of counsel or ad!ice to the employee. Also*

a!erage reports are not treated as ad!erse.

urther* in case of doubt /hether a particular remar# recorded in the

confidential report of an employee is an ad!erse remar# or not* the

same /ill be referred to the concerned $irector for decision.

.0., 1he Appellate Authority /ill normally be an officer one ran#

abo!e the Accepting ;fficer. In cases /here the 43$ is the

Accepting ;fficer* the Appellate Authority shall also be the

43$.

5. GENERAL

3asculine gender also refers to feminine gender.

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Chapter-(

ANAL@SIS

%) 1here is a need foe E9ecuti!e Performance Appraisal system* in

your companyK

rom the abo!e finding* /e are able to dra/ a conclusion that the

E9ecuti!es feel there is a strong need for E9ecuti!e PerformanceAppraisal. And there are e9ecuti!es /ho feel that there is no need

for E9ecuti!e performance appraisal.

V %' !-# S-%$!,*6

A,%""

A,%"" D'# ,%"" S-%$!,*6

D'# ,%""

+esponses(D) 8@D D D il

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) E9ecuti!es are satisfied /ith the present E9ecuti!e Performance

Appraisal systemK

E9ecuti!es are 7uite satisfied /ith the Performance Appraisal.


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@) 1he E9ecuti!e Performance Appraisal is a re/ard mechanism and

aimed at de!elopment of e9ecuti!es.

E9ecuti!es ha!e feeling that it is a source of re/ard mechanism and

has a !ery strong lin#age /ith the de!elopmental acti!ities.

V %' !-# S-%$!,*6

A,%""

A,%"" D'# ,%"" S-%$!,*6

D'# ,%""

+esponses(D) 8D @8D @0D il

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-) 1here is a need to lin# the appraisal system /ith the salary re!ie/

system to ma#e it more ob:ecti!e and de!elopment orientedK

+espondents feel that salary re!ie/ system is an inbuilt part of

Performance Appraisal system and it cannot be separated.

V %' !-# S-%$!,*6

A,%""

A,%"" D'# ,%"" S-%$!,*6

D'# ,%""

N$

R"#0$!#"

+esponses

(D)

8. D @,.0D @%.,D . D . D

) EPA is lin#ed /ith the promotional policy and carries higher

/eight age at the time of promotion.

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E9ecuti!es feel that there is a strong lin# bet/een the

E9ecuti!e performance appraisal and promotional policies as

most of the time the results are lin#ed to each other.

V %' !-# S-%$!,*6

A,%""

A,%"" D'# ,%"" S-%$!,*6

D'# ,%""

N$

R"#0$!#"

+esponses

(D)

-@.%D - .-D -. D .8D .8D

0) 1he self'appraisal part in the e9isting performance appraisal form

pro!ides ade7uate opportunity to the e9ecuti!es to assess hisC her

performance.

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8) on'assigning of rating in the self appeaisal part affects the

effecti!eness of the e9ecuti!e performance appraisal.

E9ecuti!es agree to the fact that non ssigning of rating effects the

effecti!eness of the Performance Appraisal System.

V %' !-# S-%$!,*6

A,%""

A,%"" D'# ,%"" S-%$!,*6

D'# ,%""

+esponses(D) 8D @8D @0D il

40


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&) 1he Performance Appraisal System helps the e9ecuti!e to find

their strengths M /ea#nesses relating to their performance andfacilitates in impro!ing sufficient opportunities for further

de!elopment.

1he e9ecuti!es feel that since the entire performance appraisal

system is sub:ecti!e in nature *its !ery difficult to find out the

strengths M /ea#nesses as most of the Superiors misuse them and

fa!ouritism ta#es place. >ence* by ma#ing the affair a routine

procedure.

V %' !-# S-%$!,*6

A,%""

A,%"" D'# ,%"" S-%$!,*6

D'# ,%""

+esponses(D) %,.%D @%.,D - .&D %%.@0D

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% ) 1as#sC 1argets indicating the 2ey Performance Areas are set for

each e9ecuti!e by hisC her +eporting officer in consultation /iththe former at the beginning of the year.

D of the E9ecuti!es don"t agree to the fact that certain targets

are set for them in the beginning of the year. 1herefore* they feel

that target setting is not re7uiredC possible in the company in the

present scenario.

V %' !-# S-%$!,*6A,%""

A,%"" D'# ,%"" S-%$!,*6D'# ,%""

N$R"#0$!#"

+esponses(D)

&. &D .8 D D %@.0D -. D

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%%) Periodic re!ie/s of tas#C targets assigned are done at reasonable

inter!als by the +eporting officer in order to ascertain theachie!ements and constraints faced by the appraisee.

E9ecuti!es feel that there is no need to re!ie/ the targetsC tas#s

assigned as /hen the targets are not set properly there is no

7uestion of re!ie/ing the same. Although there are employees

/ho say that indi!idual targets are not set but group targets are set*

and the re!ie/s are ta#en on time by their +eporting ;fficers.

V %' !-# S-%$!,*6A,%""

A,%"" D'# ,%"" S-%$!,*6D'# ,%""

N$R"#0$!#"

+esponses(D)

&. &D @-. &D -@.%,D %%.@0D . 8D

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% ) +eporting officer during such re!ie/ meeting tries to remo!e the

constraints faced by the appraisee and suggests impro!isation incarrying out the tas#.

E9ecuti!es do not #no/ that such meetings form a part of the

appraisal system* as they don"t ta#e place . 1hus* by ma#ing the

system /ea#.

V %' !-# S-%$!,*6A,%"" A,%"" D'# ,%"" S-%$!,*6D'# ,%"" N$R"#0$!#"

+esponses(D)

&. &D &. -D -@.%,D &. &D % D

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%@) 1he E9ecuti!es are gi!en sufficient opportunities to e9press their

feeling /ith regard to the constraints that sheC he has faced duringthe assessment year.

1he general response is positi!e in some cases as /e can see

that @0D employees agree to this* but there is a ma:ority /ho feels

that no such opportunities are gi!en to e9press the indi!idual

constraints faced during the year.

V %' !-# S-%$!,*6A,%""

A,%"" D'# ,%"" S-%$!,*6D'# ,%""

N$R"#0$!#"

+esponses(D)

. 8D @0.@D -8.8D %%.@0D . 8D

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% ) 1he suggestions* /hich are implemented in the company* are

re/arded suitably.

D of the e9ecuti!es agree to this as *it is mentioned in the

company policy and precedure that any employee /ho gi!es any

!aluable suggestion shall be re/arded suitably.

V %' !-# S-%$!,*6A,%""

A,%"" D'# ,%"" S-%$!,*6D'# ,%""

N$R"#0$!#"

+esponses(D)

il D @0.@D . 8D %%.@0D

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%0) 1he E9isting EPA system pro!ides that the +eporting officer is

in!ariably the immediate super!isor.

1he e9ecuti!es mostly agree to this as their reporting officer is

the immediate super!isor in most of the cases.

V %' !-# S-%$!,*6

A,%""

A,%"" D'# ,%"" S-%$!,*6

D'# ,%""

N$

R"#0$!#"

+esponses(D)

&. &D &. &D .8 D . 8D -. D

49


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%8) 1he pro!ision for getting feedbac# on the issue as /hether

e9ecuti!e has submitted hisC her return of mo!ableC immo!able property and E9ecuti!e record updating form ha!e no rele!ance in

the E9isting Performance Appraisal System.

E9ecuti!es agree to this as these things don"t form a part of the

appraisal system .


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%,) 1he assignments gi!en to th e9ecuti!es best match /ith their

educational bac#ground* aspirations M :ob satisfaction.

-%D employees agree as they are gi!en assignments #eeping in

mind the abo!e factors.

V %' !-# S-%$!,*6

A,%""

A,%"" D'# ,%"" S-%$!,*6

D'# ,%""

N$

R"#0$!#"

+esponses(D)

-. D - .& D @0.@D % .&D . 8D

51


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%&) 1he E9ecuti!es feel that their appraisals generally match /ith their

indi!idual ob:ecti!es.

1he employees are not satisfied /ith the fact that their

appraisals match /ith their indi!idual ob:ecti!es as they are not

made a/are of their ratings and hence by ma#ing the process

closed.

V %' !-# S-%$!,*6A,%""

A,%"" D'# ,%"" S-%$!,*6D'# ,%""

N$R"#0$!#"

+esponses

(D)

0.,D &. D -8.8D . 8D %%.@0D

52

0.00%5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

50.00%

StronglyAgree

Agree Disagree StronglyDisagree

No Response


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). 1he pro!ision for pro!iding /rite'up in support of ;utstanding"

or belo/ satisfactory" by the +eporting ;fficer is sufficient.

Although suitable opportunity is gi!en to the Assessors but

e9ecuti!es feel that these opportunities are not used to their best

possible e9tents.

V %' !-# S-%$!,*6

A,%""

A,%"" D'# ,%"" S-%$!,*6

D'# ,%""

N$

R"#0$!#"+esponses

(D)

0.,%D &. &D %,.%,D %%.@0D -. -D

55


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@) 1he assessment of integrity by the reporting officer is ade7uate for

arri!ing at a conclusion.

- D of the e9ecuti!es agree to this as it is sufficient for the >+

$epartment to arri!e at any #ind of conclusion about an e9ecuti!e. 1he

conflict arises /hene!er the ratings bet/een the +e!ie/ing officer*

+eporting officer and Accepting officer differs.

V %' !-# S-%$!,*6

A,%""

A,%"" D'# ,%"" S-%$!,*6

D'# ,%""

N$

R"#0$!#"

+esponses

(D)

%@.0D - .- D @-. &D 0.,%D . 8D

56


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-). 1he ad!erse remar#s recei!ed in respect of any appraisee is

communicated and his submissionCrepresentation is also ta#en into

consideration by the Appellate Authority before the

e9pungingCupholding such ad!erse remar#s.

V %' !-# S-%$!,*6A,%""

A,%"" D'# ,%"" S-%$!,*6D'# ,%""

N$R"#0$!#"

+esponses

(D)

% .& D -8.8 D %@.0D -. -D %,.%,D

57


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). 1he opinion of subordinates should also be ta#en into account at

the time of performance re!ie/.

1he e9ecuti!es mostly agree to it.


59/103

%. 1he appraisal process pro!ides M ma#es easy to identfy the training

needs of each M e!ery e9ecuti!e.

1he respondents agree to the fact that appraisal ma#es it easy to

identify training needs.


60/103

. 1he training programs (identified through the performance

appraisal system) th:at are underta#en generally match /ith the

e9ecuti!es functionalCpersonal de!elopment plans.

- D of the respondents feel that the training programs do not match

/ith /hat has been mentioned by them in their appraisal forms. At the

same time there are another 8D respondents /ho feel that the training

programs are underta#en.

V %' !-# S-%$!,*6A,%""

A,%"" D'# ,%"" S-%$!,*6D'# ,%""

N$R"#0$!#"

+esponses

(D)

0.,D 8. D - .-D %@.0D 0.,%D

60


61/103

@. In the appraisal !ery little /eightage is gi!e on de!elopment

aspects and more /eightage on promotionalCcompensation aspects.

+espondents agree to the fact that !ery little /eightage is gi!en to

promotionalC compensational aspects.

V %' !-# S-%$!,*6

A,%""

A,%"" D'# ,%"" S-%$!,*6

D'# ,%""

N$

R"#0$!#"

+esponses

(D)

%,.%D -. D .8D il -. -D

61


62/103

-. 1he Performance Appraisal System ta#es into account the career

de!elopment of e9ecuties and indi!idual performance related pay.

-8D of respondents feel that the Performance Appraisals are not

oriented to/ards their career de!elopments.


63/103

. 1he e9ecuti!es recogni6e that performance Appraisal /ill be

effecti!e only /hen the appraiser recei!es the correct feedbac#.

1he e9ecuti!es feel that the appraisal /ill be effecti!e only /hen

the appraiser recei!es the correct feedbac# about the appraisee.

V %' !-# S-%$!,*6

A,%""

A,%"" D'# ,%"" S-%$!,*6

D'# ,%""

N$

R"#0$!#"

+esponses

(D)

. D @,.0D -. -D . D . D

63


64/103

0. 1he system pro!ides a scope for employee counselling by the

accepting office to impro!e their performance.

D of the respondents feel that there is scope for employee

counselling to moti!ate the e9ecuti!es for better performance.

V %' !-# S-%$!,*6

A,%""

A,%"" D'# ,%"" S-%$!,*6

D'# ,%""

N$

R"#0$!#"

+esponses

(D)

-. D D @%.,D -. D -. D

64


65/103

8. E9ecuti!esC Appraisee consider that counselling is an important

toolCinstrument to bring out confidence among them.

1he response sho/s that e9ecuti!esC appraisees see counselling as

an important toolC instrument.

V %' !-# S-%$!,*6

A,%""

A,%"" D'# ,%"" S-%$!,*6

D'# ,%""

N$

R"#0$!#"+esponses

(D)

@%.,D . 8D %@.0D il . D

65


66/103

,. 1he e9isting E9ecuti!e Performance appraisal pro!ides scope for

team ob:ecti!e.

E9ecuti!es feel that indi!idual performance is gi!en more

importance and as a result* team ob:ecti!es are losing their importance

in the organisation.

V %' !-# S-%$!,*6A,%""

A,%"" D'# ,%"" S-%$!,*6D'# ,%""

N$R"#0$!#"

+esponses

(D)

0.,%D @%.,D -@.%D %0D . 8D

66


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&. E!ery appraise should be made a/are of hisCher o/n ratings at the

end of Performance Appraisal.

Although mentioned in the manual* the e9ecuti!es are not made

a/are of their ratings.

V %' !-# S-%$!,*6

A,%""

A,%"" D'# ,%"" S-%$!,*6

D'# ,%""

N$

R"#0$!#"

+esponses

(D)

-. D %,.&D .-D . D -. D

67


68/103

% .In your opinion* /hat should be the periodicity of performance

re!ie/K

D of the respondents feel that the periodicity of appraisals should

be one year* @0D feel that the periodicity should be t/ice a year* 8D

feel that it should be four times in a year.

V %' !-# O!&" '!

6" %

T


69/103

%%.$o you feel that e9isting performance appraisal system does not

fulfill the re7uirement of organi6ation in the present scenarioK

1he e9ecuti!es agree to the fact that the e9isting performance

appraisal does not fulfill the re7uirements of the organisation in the

present scenario.

V %' !-# @"# N$ N$ R"#0$!#"

+esponses

(D)

0%.@D 8. D %%.@D

69


70/103

% .@0 '$egree appraisal system in necessary for e9ecuti!es in the

present scenario.

1hough most of the respondents agreed to this uestion.


71/103

%@.$o you thin# potential appraisal system should not be a part of

Appraisal system but a separate oneK

E9ecuti!es feel that there is no need to separate the potential

appraisal system in the present scenario

V %' !-# S"0 % -" S"0 % -" !$-

R" u'%"

N$ R"#0$!#"

+esponses (D) @%.,D . 8D % .&D

71

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

Separate Separate notRequired

No Response


72/103

FINDINGS

At the end of the study * /e are able to dra/ certain tentati!e

conclusions. 1hey are as follo/s.

%) E9ecuti!e Appraisal is seen as a !aluable source of authentic

dataCinput about an e9ecuti!e and his performance. It is partly

open in the sense a portion for self appraisal e9isting in the EPA

system is open. ence

E9ecuti!e are not happy /ith the e9isting e!aluation process

/hen they found that managers ha!e been appraising them on

tas#sCtargets underta#en during the year. E9ecuti!es also feel that

since there has been no clear tas#Ctarget it becomes a fruitless

e9ercise and the appraiser some times becomes /himsical in

apprasing the appraisee the abased on the statementsC feedbac#

gi!en by the assessee. Bnder the e9isting system* assessee is

re7uired to mention the tas#Ctarget achie!ed during the assesment

72


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year. Assee generally a!oids the tas#Ctargets /hich heCshe has not

accomplished.

@) E9ecuti!es feel that the focus is gi!en on indi!idual performance

rather than groupCteam performance resulting into losing of

groupCteam ob:ecti!es in the organisation.

-) Although training needs of the indi!idual e9ecuti!es are identified

based on the input gi!en by the assessee in their self appraisal* but

the same does not translate into realities. 3ost of the e9ecuti!es

are not satisfied /ith their training and de!elopment part as most

of them ha!e not attended the training as identified by them in

their performance appraisal form.

) As in all large organi6ations there are many respondents at GAIL

/ho are not happy /ith the performance appraisal re!ie/ system.>o/e!er* top e9ecuti!es see performance appraisal as a system

that brings out !aluable inputsCfeedbac# about an e9ecuti!e*

/hich helps them to compare the performance of one e9ecuti!e

/ith another.

0) 1here are certain difficulties /hich are faced by the >+

$epartment /hile consolidating the ratings in the appraisals. A

fe/ such problems /ere highlighted by the E9ecuti!es /ho deal

/ith such sub:ects. 1hey are as follo/s.

A conflict arises bet/een the ratings gi!en by the +eporting

;fficer* +e!ie/ing ;fficer and Accepting ;fficer /hene!er their

ratings differ drastically.

73


74/103

5hile identifying the training needs* the opinion of all the assesors

(+eporting officer* +e!ie/ing officer and Accepting officer) areta#en into account ignoring the suggestions of the appraisee. 1his

creates discontinment among such appraisees /ho feel that they are

generally ignored /hile determining the needs of the company as

/hole.

8) 1he e9isting policy permits that the ad!erse remar#s are to be

communicated to the concerned e9ecuti!e but in actual practice

the ad!erse remar#s are not communicated to the e9ecuti!es. 1he

basic ob:ecti!e of both pro!ision is to encourage employee for

impro!ement in the performance this not practically done. 3ost

of the e9ecuti!es are of the !ie/s that the ad!erse remar#s

including the feedbac# a irrespecti!e of ratings should be

communicated.

,) 3ost of the e9ecuti!es /ant themsel!es to be assessed by their

subordinates* but are not billing to be assessed by their peers*

internal and e9ternal customers. In this #ind of climate it is

construed that e9ecuti!es are not in fa!our of @0 appraisal

system. Some open discussions should be conducted bet/een the

assessors and the assessees.

&) E9ecuti!es also feel that the time duration gi!en by the company

for pro!iding inputs in terms of filling up appraisal forms is !ery

less resulting in to delay in the o!erall process.

% ) E9ecuti!es feel that counselling is an inbuild e9ercise and part of

the entire Performance Appraisal System and is necessary for all

74


75/103

the appraisees irrespecti!e of their ratings. >o/e!er* this is

re7uired and important for poor performers to moti!ate them. At

the same time it is also re7uired for the e9ecuti!es /ho get good

ratings* to moti!ate them for further better performance.

%%) inally* e9ecuti!es are of the !ie/ that there is no need to

separate the potential appraisal system. It should remain in its

present format. 1he parameters as indicated in the potential

appraisal are not ade7uate to assess the potential of thee9ecuti!es. E9ecuti!es feel that more factorsCparameters are

re7uired to be added.

75


76/103


77/103

-) 1he present system does not ha!e any mechanism* /hich gi!es

regular feedbac# on the performnce of the assessee. 1he e9isting

system should be impro!ed upon pro!iding such scope /here by

employees are helped to #no/ their strengthes and /ea#nesses by

/hich the appraisee tries to impro!e and de!elop during the

assessment year.

) In the training needs the appraisee should not be as#ed to fill up

the details of the training undergone during pre!ious years sincethis information is already a!ailable /ith the 1raining

$epartment.

8) 5or#shops at least t/ice in a year on the sub:ect for +eporting and

+e!ie/ing ;fficers should be conducted in order to pro!ide them

some #no/ledge about the system and procedures for assessing the

appraisee.

,) A boo#let should be supplied containing detail guidelines that may

help the appraisee to assess hisCher subordinate. Some illustration

of targets and assessment for e9ecuti!es in different departments

and grades can be prepared /ith the help of managers and can be

included in the boo#let.

&) 5ith respect to the parameters on /hich the appraisee is assessed*

it is suggested that certain parameters should be common for both

technicalCnon'technical e9ecuti!es. 1he e9isting system pro!ides

common parameters for both technical and non'technical

e9ecuti!es. >ence certain speciali6ed parameters should be

77


78/103

incorporated for technical or non'technical e9ecuti!es* suiting their

:ob re7uirments.

% ) 1he Potential Appraisal System should not be a in built one*

rather it should be a separate one. 1he e9isting EPA system is

lin#ed /ith the promotion policy and compensationCsalary

administration. In !ie/ of this* the prime ob:ecti!e of the EPA

system that is aimed at de!elopment of e9ecuti!es is defeated. It is

also !ery difficult to delin# the e9isting EPA system from promotionCcompensation policies. ;n the other hand it is also not

good to ignore the de!elopment needs of the e9ecuti!es. 1hus the

main emphasis should be on e9ecuti!e de!elopment. 1his can be

achie!ed /hen E9eucit!e Potential Appraisal system is delin#ed

from the Performance Appraisal System and made a separate one

/ith primary focus on de!elopment of e9ecuti!es.

78


79/103

CONCLUSION

1he primary ob:ecti!e of Perofrmance Appraisal System is to ser!e as

an aid in the total process for career progressionCpromotion of the

appraisee as /ell as a de!elopmental tool. >o/e!er* since the

Performance Appraisal +e!ie/ System is strongly lin#ed /ith the

promotion e9erciseJ (Performance Appraisal +e!ie/ rating

constituting the most important criteria for career progression from

one le!el to the other) it is percei!ed more as means in the hands of

the reportingCre!ie/ing officer to control their subordinates.

1he other important aspect of employee de!elopment" is not getting

due importance in the e9isting system. It can thus be conclusi!ely

stated that the present Performance Appraisal +e!ie/ System needs to

be re!ie/ed and refocussed such that it can ser!e the purpose for

/hich it is intended* in a more comprehensi!e manner.

79


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:I:LIOGRAPH@

///. >r.com

///.humancapital .com

Employee 3anual of GAIL

///.humanresources.com

//.hrd.com

///.indiainfoline.com

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CERTIFICATE

1his is to certify that the Problem Sol!ing Pro:ect /or# on F A S-u 6

$! - " E "&-'/"!"## $ - " E;'#-'!, P"% $%m !&" A00% '# * S6#-"m

$ G # Au- $%'-6 $ I! ' L'm'-" (GAIL) is an original /or# and

that this /or# has not been submitted to SriSim or else/here in any

form. 3y indebtedness to other /or#sC publications has been duly

ac#no/ledged at the rele!ant places. 1he pro:ect /or# /as carried

during %8th ;ctober to %, th April in the 4orporate ;ffice in

+ $epartment=asant =ihar Gas Authority of India Ltd.

e/ $elhi'%% 8


82/103

ACKNO7LEDGEMENT

I am than#ful to GAS AUTHORIT@ OF INDIA LIMITED (GAIL)

for gi!ing me an opportunity to /or# in the >+ $epartment for my

Problem Sol!ing Pro:ect (PSP) and ensuring the smooth completion of

the same.

All throughout the pro:ect has gone under the blessings of

S %'. K. V '- ""#< % ! * S %'. S. N'6$,' (D'%"&-$% HR) M%.M%.

M.R.G"% (I!-"%! * Gu' " S%'M.R.G"% (I!-"%! * Gu' " S%' SIMSIM )) ! M%#. V ! ! C ! !

(S%.M ! ,"%) HR D"0 %-m"!- (E;-"%! * Gu' ").

3y foremost than#s shall be to/ards my coordinators M%.K.C.D #

M%.: % - M" - (HR E;"&u-'/"#) under /hose sincere and de!oted

guidance I could prepare and complete the pro:ect report.

I duly ac#no/ledge the timely help of e!eryone /ho has contributed in

many /ays and made the pro:ect a successful endea!or.

(V.VIDH@A)

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PREFACE

1he history of Performance Appraisal is 7uite brief. As a formal

management procedure it /as used in the e!aluation of /or#

performance* it has e9isted from the time of the Second 5orld 5ar

barely years.

Performance Appraisal system began as a simple method of income

:ustification. Later it has been used for de!elopment and otheracti!ities.

5ith competition becoming tougher and foreign in!estment and

multinationals being /elcomed in this country* there is a pressure on

the Indian companies to perform. 1his pressure is for the sur!i!al in

some cases and to e9cel and e9pand in some other cases M the one

sector constantly under pressure to perform are the e9ecuti!es.

4ompetent e9ecuti!es are becoming e9pensi!e and rare. 5ith this*

e!ery e9ecuti!e is being continuously assessed for the !alue he is

adding to the company. Performance Appraisal therefore has become

important instrument for assessing and determining the /orth of each

e9ecuti!e in relation to the company.

1his pro:ect /as basically underta#en to study the effecti!eness of the

e9isting E9ecuti!e Performance Appraisal of GAIL. And in the second

part of this pro:ect it has been compared /ith some other leading

publicC pri!ate sector companies.

V.V' 6

83


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E=ECUTIVE SUMMAR@E=ECUTIVE SUMMAR@

Performance Appraisal is an important mechanism in an organi6ation

for ad:udging the employee"s performance in realising its o!erall

ob:ecti!es. GAIL is in the process of re!ie/ing the e9isting

Performance Appraisal system in respect of both E9ecuti!es and on'

E9ecuti!es. 5ith a !ie/ to ta#e the feedbac# of the e9ecuti!es in

respect of e9isting Appraisal C format System* I /as assigned the

pro:ect on F The Effectiveness of the Existing Performance Appraisal

System . 1he Scope of the Pro:ect includes e9ecuti!es" perception and

their suggestions /ith respect to the e9isting Performance Appraisal

system and specific recommendations for further impro!ement.

1he methodology adopted in the e9ercise /as the de!elopment of a

uestionnaire /ith a -'point scale and a fe/ open'ended 7uestions.

Primary data /as collected /ith the help of uestionnaire and direct

inter!ie/s .1he secondary data /as collected /ith the help of

personnel manual* e9isting performance appraisal system and format.

In order to cross chec# the feedbac# recei!ed from different

respondents and to get into the details of the effecti!eness of the

system direct inter!ie/ method /as also adopted. +esponses recei!edfrom all cross'sections of e9ecuti!e ranging from the E'% to E'& le!el

/ere collated. 1he respondents /ere selected from the 4orporate and

oida office. 1hereafter the respondents among the e9ecuti!es /ere

chosen from the employee"s list on the basis of 4on!enient

Sampling". 1he collected data /as compiled and analy6ed and /ere

sho/n in percentage method* pie charts and bar diagrams.

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+ and 1raining

department* !arious problemsC shortcomingsC procedural bottlenec#s

/ere identified. 1hese problems and shortcomings ha!e been ta#en

into account /hile arri!ing at findings and subse7uently gi!ing

recommendations thereon.

1he findings of the o!erall Performance Appraisal System is that

generally the e9ecuti!es are 7uite satisfied /ith the e9isting system.


86/103

Bu"#-'$!! '%"

%) 1here is a need for E9ecuti!e Performance Appraisal system* inyour company.

Strongly AgreeAgree$isagreeStrongly $isagree

) E9ecuti!es are satisfied /ith the present E9ecuti!e performanceappraisal system


@) 1he E9ecuti!e performance appraisal (EPA) is a re/ard

mechanism and aimed at de!elopment of e9ecuti!es.Strongly AgreeAgree$isagreeStrongly $isagree

-) 1here is a need to delin# the appraisal system from the salaryre!ie/ system to ma#e it more ob:ecti!e and de!elopmentoriented..


) EPA is lin#ed /ith the promotional policy and carries higher/eightage at the time of promotion.

Strongly AgreeAgree

$isagreeStrongly $isagree

86


87/103

0) 1he self'appraisal part in the e9isting performance appraisalform pro!ides ade7uate opportunity to the e9ecuti!es to assesshisCher performance.

Strongly AgreeAgree$isagree

Strongly $isagree

8) on'assigning of rating in the self'appraisal part affects theeffecti!eness of the E9ecuti!e Performance Appraisal.


,) E!ery e9ecuti!e should be gi!en an opportunity to rate hisChero/n performance and such rating should carry some /eightage inthe entire Performance appraisal System.


&) 1he Performance Appraisal System helps the e9ecuti!es to findtheir strengths M /ea#nesses relating to their performance andfacilitates in pro!iding sufficient opportunities for furtherde!elopment.


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% ) 1as#sC1argets indicating the #ey Performance Areas are set

for each e9ecuti!e by hisCher +eporting officer in

consultation /ith the former at the beginning of the year.


%%) Periodic +e!ie/s of tas#Ctarget assigned are done at reasonableinter!als by the +eporting officer in order to ascertain theachie!ement and constraints faced by the appraisee.

Strongly Agree Agree $isagree Strongly disagree

% ) +eporting officer during such re!ie/ meeting tires to remo!e theconstraints faced by the appraisee and suggests impro!isation incarrying out the tas#.

Strongly Agree Agree $isagree Strongly $isagree

%@) 1he e9ecuti!es are gi!en sufficient opportunities to e9press their

feeling /ith regard to the constraints that sheChe has faced duringthe assessment year. Strongly Agree Agree $isagree Strongly $isagree

88


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90/103


91/103

-) 1he ad!erse remar#s recei!ed in respect of any appraisee iscommunicated and his submissionCrepresentation is also ta#en into

consideration by the Appellate Authority before thee9pungingCupholding such ad!erse remar#s.


) 1he opinion of subordinates should also be ta#en into account atthe time of performance re!ie/.


0) 1he appraisal process pro!ides and ma#es easy to identify thetraining needs of each and e!ery e9ecuti!e.

Strongly Agree

Agree $isagree Strongly $isagree

8) 1he training progrms (identified through the performance appraisalsystem) that are underta#en generally match /ith the e9ecuti!esfunctionalCpersonal de!elopment plans.


,) In the appraisal !ery little /eightage is gi!en on de!elopmentaspects and more /eightage on promotionalCcompensationaspects.

Strongly Agree Agree $isagree

Strongly $isagree

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&) 1he Performance Appraisal System ta#es into account the careerde!elopment of e9ecuti!es and indi!idual performance related

pay. Strongly Agree Agree $isagree Strongly $isagree

@ ) 1he e9ecuti!es recogni6e that performance appraisal /ill beeffecti!e only /hen the appraiser recei!es the correct feedbac#.


@%) 1he system pro!ides a scope for employee counselling by theaccepting office to impro!e their performance.


@ ) E9ecuti!esCAppraisee consider that counseling is an importanttoolCinstrument to bring out confidence among them.


@@) 1he e9isting E9ecuti!e Performance appraisal pro!ides scope forteam ob:ecti!e.


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@-) E!ery appraise should be made a/are of hisCher o/n rating at theend of Performance Appraisal.


@ ) In your opinion* /hat should be the periodicity of performancere!ie/K


@0) $o you feel that e9isting performance appraisal system does notfulfill the re7uirement of organi6ation in the present scenarioK

Nes o

@8) $o you feel that the appraisee should not only be assessed byhisCher superior but also by hisCher superior* peers* customers(


94/103

- ) $o you thin# potential appraisal system should not be a part ofAppraisal system but a separate oneK

OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO

-%)In your opinion /hat impro!ement can be brought in the e9istingsystemK OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO

- ) Please /rite do/n any other comments you /ish to ma#e on youre9perience of appraisal. OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO

O- "% D"- '*#

ame of the EmployeeOOOOOOOOOOOOOOOOOOOOOOOOOOOO Employee umberOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO Grade C $esignationOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO $epartmentOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO $ateOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO

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Qes. No. Strongly Agree Agree Disagree StronglyDisagree

1.

2.

3.

4.

5.

6.7.

8.

9.

10.

11.12.

13.

14.

15.

16.

17.18.

19.

20.

21.

22.

23.24.

25.

26.

27.

28.

29.30.

31.

32.

33.

34.35.

36.

37.

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CONTENTS

T$0' P ," N$.

C"%-' '& -"

A& !$


97/103

Chapter-1Chapter-1

COMPANY

PROFILE

97


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Chapter-2Chapter-2

Review of

literature

98


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100/103

Chapter-4 Chapter-4

methodology

100


101/103

Chapter-5 Chapter-5

An introduction

to the GAIL s

system

101


102/103

Chapter-6 Chapter-6

observation

102


103/103

Chapter-7 Chapter-7

ANALYSIS

gas authority of india limited-original####

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