A

PROJECT REPORT
“PERFORMANCE APPRAISAL SYSTEM”
AT
RASHTRIYA ISPAT NIGAM LIMITED VIZAG

A project report submitted to the

Department of MBA International Business Studies
Acharya Nagarjuna University, GUNTUR
in partial fulfillment of the requirements for the award of the degree of
MASTER OF BUSINESS ADIMINSTRATION
Submitted by
K. SIVA PRASAD
[Reg.no.Y23IB20013]
Under the Guidance of
Miss. Smita Chandrawati (HR)

Department of International Business Studies

ACHARYA NAGARJUNA UNIVERSITY GUNTUR
2022-2024

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 CERTIFICATE
This is to certify that the project work entitled “ A STUDY ON PERFORMANCE

APPRAISAL SYSTEM” is benefited work covered out by K.SIVAPRASAD

[Reg.no.Y23IB20013] under guidance and supervision of Miss. Smita

Chandrawati in partial fulfillment of requirement for the award of the degree of

“ MASTER OF BUSINESS ADMINISTRATION” Acharya Nagarjuna

University Guntur during the academic year 2022-2024.

PROJECT GUIDE

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 DECLARATION
I here declare that the project titled “ A STUDY ON PERFORMANCE

APPRAISAL SYSTEM been prepared by me during the year 2022-2024 in

partial fulfillment of the requirement for the award of the during Master of business

administration in Department of International Business.

I also declare that this project is the outcome of my own efforts and has

not been submitted to any other university for the award of any degree by any other

person.

Date:
K. SIVAPRASAD
Place: Guntur

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 ACKNOWLEDEMENT

I would like to express my gratitude to all those who helped me

throughout my project work.
First and foremost, I am thankful to Prof. V. Chandra Sekhar Rao
M.Com, Ph.D HOD of Department of MBA International Business
Studies, for giving me the opportunity to take up the project work
I would also like to thank Miss. Smita Chandrawati , for her valuable
guidance and support for the completion of my project work.
I would like to express my sincere gratitude to the management and
staff of Human Resource Development in RINL, for giving me permission
to do my project work in their organization and helping me meticulously
in all the aspects of my project work.
Finally, I would also like to thank all my staff members in the
Administration Department in RINL , of for their enduring support
throughout my project work..

K. SIVA PRASAD

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 INDEX
S. No CONTENTS PAGE NO
CHAPTER -1
1. INTRODUCTION
2. NEED OF THE STUDY
1 3. SCOPE OF THE STUDY 1-6
4. OBJECTIVES OF THE STUDY
5. IMPORTANCE OF THE STUDY
6. METHODOLOGY

2 INDUSTRY PROFILE 7-13

3 COMPANY PROFILE 14-29

THEORTICAL FRAME WORK OF

4 PERFORMANCE APPRAISAL 30-69
SYSYTEM

5 DATA ANALYSIS 70-80

FINDINGS, SUGGESTIONS,
6 81-84
CONCULSION

7 BIBLIOGRAPHY 85-86

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CHAPTER-1

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 INTRODUCTION
Human Resources Management:
Human Resource Management (HRM) is the function within an
organization that focuses on recruitment of, management of, and providing
direction for the people who work in the organization. Human Resource
Management can also be performed by line managers .
Human Resource Management is the organizational function that deals with
issues related to people such as compensation, hiring, performance management,
organization development, safety, wellness, benefits, employee motivation,
communication, administration, and training.
Human resource management (HRM) is the strategic and coherent approach to
the management of an organization's most valued assets - the people working
there who individually and collectively contribute to the achievement of the
objectives of the business. The terms "human resource management" and "human
resources" (HR) have largely replaced the term " personnel management" as a
description of the processes involved in managing people in organizations.
In simple words, HRM means employing people, developing their capacities,
utilizing, maintaining and compensating their services in tune with the job and
organizational requirement.
Human Resources Development:
Human Resource Development (HRD) is the framework for helping employees
develops their personal and organizational skills, knowledge, and abilities.
Human Resource Development includes such opportunities as employee training,
employee career development, performance management and development,
coaching, mentoring, succession planning, key employee identification, tuition
assistance, and organization development.
The focus of all aspects of Human Resource Development is on developing the
most superior workforce so that the organization and individual employees can
accomplish their work goals in service to customers. Human Resource
Development can be formal such as in classroom training, a college course, or an
organizational planned change effort. Or, Human Resource Development can be
informal as in employee coaching by a manager. Healthy organizations believe in
Human Resource Development and cover all of these bases.

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Performance Appraisal System:
Performance appraisal refers to all the formal procedures used to evaluate an
individual, his contributions and potential. In other words, it is to plan and
measure the performance of an individual in terms of the requirement of the job
or it is a process of finding out how effective the organization has been at hiring
and placing an employee .Performance appraisal is a formal system of review and
evaluation of individual or team task performance. While evaluation of team
performance is critical when teams exist in an organization, the focus of
performance appraisal in most firms remains on the individual employees.
Regardless of the emphasis, an effective appraisal evaluates accomplishments
and initiates plans for development, goals and objectives.

Company
RASHTRIYA ISPAT NIGAM LT also known as Vizag Steel, is a Central
public sector undertaking under the ownership of Ministry of steel, Government
of India based in Visakhapatnam, India. It was established 18 February
1982.Visakhapatnam Steel plant was separated from SAIL and RINL was made
the corporate entity of Visakhapatnam Steel Plant in April 1982.
Visakhapatnam Steel Plant is a Navaratna PSE under the Ministry of Steel.

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NEED FOR THE STUDY
Appraising the performance of individuals, groups and organizations is a
common practice of all societies. While in some instances these appraisal
processes are structured and formally sanctioned, in other instances they are an
informal and integral part of daily activities. Consciously of unconsciously
evaluate our own actions from time to time. In social interactions, performance is
conducted a systematic and planned manner to achieve widespread popularity in
recent years. Performance appraisal is essential to understand and improve the
employee's performance through HRD.
In fact, performance appraisal is the basis fore HRD. It was viewed
performance appraisal was useful to decide upon employee promotion / transfer
salary determination and the like. But the recent developments in human
resources management indicate that performance appraisal is the basis for
employee development. Performance appraisal indicates the level of desired
performance level, level of actual performance and the gap between these two.
This gap should be bridged through human resources development techniques
like training executive development etc.
According to the past survey it was noticed that the performance appraisal
system in this company was not up to the mark. Hence there would be scope for
giving few suggestions as per my knowledge to improve the performance
appraisal system which was quite essential for the better performance of the
employees.

SCOPE OF STUDY
• The study Covers all the executive employees of various departments like
➢ HRD
➢ L&D
➢ Accounts Department
➢ General Administration
• These executive employees belong to various functional area and shifts.

• Study covers with in the organization rules & regulations

• View of the employees is as considered as their perception to words the

existing PAS.

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• The study covers all policies of the organization and their implementations on
individual employees.

OBJECTIVES OF THE STUDY

• To study the need and importance of “performance Appraisal System”.

• To portray the Profile of “Rashtriya Ispat Nigam Ltd, Vizag Steel.

• To study the Performance appraisal System implementation in RINL.

• To make data Analysis and interpretation based on the perception of the

employee in the organisation.
• To summarize and find certain suggestion for the impotent of Performance
Appraisal system in the company.

IMPORTANCE OF THE STUDY

Performance appraisals provide employees and managers with opportunities to
discuss areas in which employees excel and those in which employees need
improvement. Performance appraisals should be conducted on a regular basis,
and they need not be directly attached to promotion opportunities.
Personal Attention
During a performance appraisal review, a supervisor and an employee discuss the
employee's strengths and weaknesses. This gives the employee individual face
time with the supervisor and a chance to address personal concerns.
Feedback
Employees need to know when their job duties are being fulfilled and when there
are issues with their work performance. Managers should schedule this
communication on a regular basis.

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Career Path
Performance appraisals allow employees and supervisors to discuss goals that
must be met to advance within the company. This can include identifying skills
that must be acquired, areas in which one must improve, and educational courses
that must be completed.
Employee Accountability
When employees know there will be regularly scheduled evaluations, they realize
that they are accountable for their job performance.
Communicate Divisional and Company Goals
Besides communicating employees' individual goals, employee appraisals
provide the opportunity for managers to explain organizational goals and the
ways in which employees can participate in the achievement of those goals
METHODOLOGY
To get information about satisfaction level of employees from performance
appraisal system and its effectiveness a stratified sample survey was conducted.
The information required for making comprehensive study on the performance
appraisal system for their growth in the 6ob career .To evaluates the performance
of employees is followed by two ways of sources. That is primary and secondary
sources. The pro6ect is based on primary and secondary data. The research design
for the study is as follows:
❖ SAMPLE SIZE
❖ STATISTICAL DATA
❖ PRIMARY DATA
❖ SECONDARY DATA
SAMPLE SIZE:
A sample size of 50 correspondents was chosen as it was worked out to be
optimum considering the constraints of the resources.
STATISTICAL DATA:
For the purpose to analyze, tactical tools such as bar graphs have been used.
PRIMARY DATA:
Information, which has been for the first time is called ‘Primary data’. In my
study the primary data has been collected by means of personal Interviews with
help of questionnaire.
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 Some respondents were not able to understand the questionnaire properly so I
explained the questionnaire and asked them to fill it. Finally the collected data
was analyzed with the help of bar diagrams and presented in the chapter. Some
suggestions were offered based on findings and conclusions.
SECONDARY DATA:
It can be through overall annual reports performance of executives. The
performance of the executives can be determined through some techniques are
used by the organization. The records maintained by HR department served as
valuable source of secondary information required.

Limitations of the Study

 The sample used for the study has been taken from the executive &
ministerial staff of Rastriya Ispat Nigam Ltd. Visakhapatnam steel Plant.

 The period of study is only for about 40 days which is a major constraint.

 Time constraint is also one of the limitations, because of the busy schedule
of some employees data has not been collected from those employees.
 An employee who can impress the boss may get a positive evaluation
though his impression in his own departments may be very poor. In such
cases, the performance appraisal will be superfluous.
 All the information gathered in this regard is mostly through personal
discussion according to the knowledge of the executives.
 Information taken for this study purely based on the companies ‘Norms
and conditions and no confidential matter is included in it.

 The evaluator tries to look those qualities in subordinates which he himself

possesses. Those who show the similar characteristics are rated high.

 In order to give very low or very high rating the top managers are required
to give reasons to justify the rating. The most common error committed in
performance appraisal is to give average rating to all employees. Moreover,
low rating antagonizes the subordinates.

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 CHAPTER -2
INDUSTRY PROFILE

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INTRODUCTION TO STEEL INDUSTRY IN INDIA
India got into the steel making in the early20th Century when JRG Tata set up the
first steel mill in the country in 1907 in Jamshedpur. Since then, the steel industry
has undergone a lot changes but the Tata Iron Steel Company industry continues
to be the largest private steel maker in the country. The Steel industry in the 70s
and 80s was dominated by TISCO &SAIL. With the price control regime in place,
the steel companies could turn in a profit without any major effort. But the
situation soon changed when the country decided to open the doors foreign
investment in 1991. The pricing mechanism of joint plant committee, which has
been operating from 1964, was abolished with effect from January 1992.
In the initial economic reforms, industrialists saw the economy growing at 7%
per annum and since steel consumption is directly linked to the growth in
economy, it was assumed that demand for steel industry would explode. This led
to huge flow of investments into steel industry and many EAF based steel units
were set up. The 1 phase (1914- 1947) of its evolution can be traced to the
beginning of 20 when the steel industry made a beginning as an icon of active
patriotism , thanks to the pioneering spirit of "Swadeshi"' entrepreneurs in the
private sector. This period saw a small but viable steel capacity of about 1 million
tones.
Although the initial years justified these assumptions and steel consumption
really took off, this scenario was not to continue for long .The political instability
and the resultant slowdown. The South East Asian economic crises were of
course, the final on the confine.
During the second phase (1947-1992), in the hands of clearly planners this
industry became an important instrument for attaining rapid economic growth
because of two inherent advantage enjoyed by it .firstly. India's fast reserves of
basic raw materials conferred a certain competitive advance to this industry.
Secondly the wide -ranging linkages, both forward &backward sector has with
the rest of the economy made it an ideal catalyst for generating and sustaining
economic development.
During the 4 decades, the Indian State invested heavily in creating large scale
integrated capacities in the public sector as a part of the overall development
strategy aiming at self sufficiency in the heavy & basic industries. To ensure state
control at the commanding heights of the economy, large -scale capacity creation
was reserved for the public sector units (PSU) in a prominently mixed economic
environment.

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INDIA'S STEEL SCENARIO
Indian Steel Industry has always remained isolated and protected by Government,
where the steel industry was never expected to generate profit from business, but
was expected to provide employment to the unemployed. Presently India is
operating with open-heath furnaces. The existing equipment, energy and labour
in Indian Steel industry are much low than the developed countries.
Indian Steel industry generates a significant amount of "waste management"
namely residue reprocess, recycle and recover do not hold much ground in the
Indian Steel Industry. The energy consumption per ton is 50-100% higher than
that of the international norms.
The Indian steel industries have developed a bit in the recent years. The
production is going on properly. Many techniques are being implemented in the
steel Industries. The country's aim is to sell quality steel. The government is also
helping the steel industries in this basis. The apparent consumption of steel is
shown below:
The development of steel industry in India should be viewed in conjunction with
type and system of government that had been ruling the country. The production
Steel in significant quality stated after a 1990. The growth of steel industry can
be Conveniently started by dividing the period of into pre and post independence
era. In this period of Independence steel production was 1.5 million tons per year.
This is the present of the bold steps taken by the government to develop this
sector.
Location :
The plant is located on the coast of Bay of Bengal, 16kms to the south west of
Visakhapatnam port. It lies between the northern boundary of the national
highway no. 5 from Madras to Calcutta and 7 Kms. The south of the Howrah-
madras railway line. Visakhapatnam is well connected by air with the principal
cities of India.
Production capacity:
The plant focuses on producing value-added steel, producing 5.773 million
tonnes of hot metal, 5.272 million tonnes of crude steel and 5.138 million tonnes
of saleable steel in the 2021-2022 financial year.
VISAKHAPATNAM STEEL PLANT:

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Visakhapatnam Steel Plant was separated from SAIL and RINL was made the
corporate entity of Visakhapatnam Steel Plant in April 1982. Vizag Steel Plant is
the only Indian shore-based steel plant and is situated on 33,000 acres (13,000
ha), and is poised to expand to produce up to 20 MT in a single campus.
GOVERNMENT CONTROL AND PRICING POLICY
Since 1941, India steel and iron industry was almost completely state regulated
both prices and distribution of steel were under the control of Govt. The Govt.
Decided to remove statutory control over the price and distribution of all, but a
few categories With effect from 1t march 1964 the Govt., supervise the steel and
iron inducted according to the recommendation of Raja committer. But Raj
committee in fixing the Steel price didn't regulate the price of the raw materials.
GROWTH OF STEEL INDUSTRY:
MARKET SIZE
In the past 10-12 years, India's steel sector has expanded significantly. Production
has increased by 75% since 2008, while domestic steel demand has increased by
almost 80%. The capacity for producing steel has grown concurrently, and the
rise has been largely organic.
In FY22, the production of crude steel and finished steel stood at 133.596 MT
and 120.01 MT, respectively. The consumption of finished steel stood at 105.751
MT in FY22. In April 2022, India's finished steel consumption stood at 9.072 MT.
In April- July 2022, the production of crude steel and finished steel stood at 40.95
MT and 38.55 MT respectively.
In FY22, exports and imports of finished steel stood at 13.49 MT and 4.67 MT,
respectively. In FY22, India's export rose by 25.1% YoY, compared with 2021. In
FY21, India exported 9.49 MT of finished steel. In July 2022 exports of finished
steel stood at 3.80 lakh MT.
The annual production of steel is anticipated to exceed 300 million tonnes by
2030- 2031. By 2030-31, crude steel production is projected to reach 255 million
tonnes at 85% capacity utilisation achieving 230 million tonnes of finished steel
production, assuming a 10% yield loss or a 90% conversion ratio for the
conversion of raw steel to finished steel. With net exports of 24 million tonnes,
consumption is expected to reach 206 million tonnes by the years 2030-1931. As
a result, it is anticipated that per-person steel consumption will grow to 160 kg.
Switching to steel thus positively transformed the transport sector, due to their
greater strength and durability and ability to handle the increasingly heavy and

10
faster cars and engines. This led to the mush rooming of many other
manufacturing activities dependent on steel and/or transportation.

The Growth is a chronological order is depicited below

S.NO Year Growth
1 1830 Osier Marshal heather constructed the first
manufacturing plant at port -motor in Madras
presidency.
2 1874 James Erskin founded in Bengal frame works
3 1899 Jamshedji TATA initiated the scheme for an integration
steel plant
4 1906 Formation of TISCO
5 1911 TISCO started Production
6 1918 TISCO was founded
7 1940-1950 Formation of Mysore iron and steel initiated at
Bhadravati in Karnataka.
8 1951-1956 First five year plan -The Hindustan Steel Limited (HSL)
was born in the year 1954 with decision of setting up
three plants each with 1 million tonnes ingot steel per
year at Rourkela, Bhilai, Durgapur.
9 1956-1961 Second five Year Plan – a bold decision was taken up to
increase the ingot steel output in India to 6 million tons
per year and its production at Rourkela , Bhilai steel
plant Started.
10 1964 Bokaro steel Plant came into Existence
11 1966-1969 Recession period -till the expansion programs were
actively exisited during period.
12 1979-1980 Annual plan. The erst while soviet union agreed to help
in setting in the Visakhapatnam Steel Plant.
13. 1980-1985 Sixth five year Plan – works on Visakhapatnam Steel
Plant with a big bang and top priority was accorded to
start plant. Schemes for modernization of Bhilai Steel
Plant, Rourkela Steel Plant and Tisco were initated.
14 1992-1997 Eight five year plan – The Visakhapatnam Steel plant
was commissioned in 1992. The cost of plant has
become around.8755 crores. Visakhapatnam steel plant
started the production and modernization of other steel
plants is also duly engaged.
15 1997-2002 Ninth Five Year Plan – restructuring of Visakhapatnam
steel plant and other public sector undertakings.

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STEEL PLANT WITH FOREGIN COLLABORATION
S.NO PLANT Collaboration capacity of finished
steel production
1 Rourkela Steel plant West Germany
2 Bhilai Steel plant Erstwhile USSR
3 Durgapur Steel Plant Brittan
4 Bokaro Steel Plant Erst USSR

S.NO PLANT Collaboration Annual production

capacity of finished
steel production
1 Rourkela Steel plant West Germany 720000 tones
2 Bhilai Steel plant 770000 tones
USSR
3 Durgapur Steel Brittan 800000 tones
Plant

S.NO PLANT Original Expanded MT/Year

MT/Year

1 Rourkela Steel plant 1.0 1.8

2 Bhilai Steel plant 1.1 2.5

3 Durgapur Steel Plant 1.0 1.6

4 TISCO 1.0 2.0

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FUTURE FOCUS :

Vishakhapatnam Steel Plant is targeting to Produce 12 million tone saleable steel

during this fiscal as against 5.13 million tons last year.
Despite rise in prices of major raw materials, particularly coking coal and iron
Ore, the company is making efforts to reduce cost by over Rs 150 core this fiscal.
VSP has Set a turnover target of Rs 13.600 core for which it would focus on
value-added Steel. It plans to open new branches and new consignment sales
agents besides expanding its district level dealership and rural distribution
networks, a company release said.
VSP has also drawn up strategic investment plans to address its concern for raw
material security. These include pursuing with iron ore- rich states for allotment
of mines and joint venture opportunities with state mineral development
corporations for value addition projects. It would also seek allocation of open cast
coal blocks from the Centre. Strategic partnership with Neelachal Ispat Nigam
Limit through an equity stake in MMTC is also being explored.

13
 CHAPTER -3
COMPANY PROFILE

14
A BRIEF PROFILE OF VISAKHAPATNAM STEEL PLANT
BACKGROUND OR HISTORY

The government of India has decided to set up an integrated steel plant at

Visakhapatnam steel plant was the effect of the persistent demands and mass
movements. It is another step towards increasing the country's steel production.
The decision of the government to set up an integrated steel plant was laid down
by the then prime minister Smt. Indira Gandhi. The prime minister laid the
foundation stone on 20 January 1971.The consultant. M/s M N Duster &co (pvt)
ltd. Submitted a techno-economic feasibility report in February 1972, and
detailed project report for the plant, with an annual capacity of 3.4 million tones
of liquid steel.
The government of India and USSR signed an agreement on 12th June 1979 for
the co-operation in setting up 3.4 million tones integrated steel plant. The project
was estimated to cost to Rs.3, 897.28 cores based on prices as 4th quarter of 1981.
However, on completion of the construction and commissioning of the whole
plant in 1992, the cost escalated to Rs.8, 755 cores based on prices as on 2nd
quarter of 1994.
Unlike other integrated steel plant in India, Visakhapatnam steel plant is one of
the most modern steel plant is one of the most modern steel plants in the country.
The plant was dedicated it the nation on 1 august 1992 by the then prime minister,
sri. P. V. Narasimha Rao.
New technology, large-scale computerization and automation etc, are
incorporated in the plant at the international levels and attains such labour
productivity; the organizational manpower has been rationalized. The manpower
in the capacity of producing 3.0 million tones of saleable steel.
It has set up two major blast furnaces, the Godavari and Krishna, which are the
envy of any modern steel making complex. The economy of a nation depends on
acre sector industries like iron and steel. Steel is the basic input for construction,
machines building and transport industries. Keeping in view the importance of
steel the following integrated steel plant with foreign collaborations was
constructed in the public sector in the post independence era.

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VISION:
To be a continuously growing world-class company. We shall:
a. Hardness our growth potential and sustain profitable growth.

b. Deliver high quality and cost competitive products and be the first choice
of customers.

c. To create an inspiring work environment to unleash the creative energy of

people.

d. Achieve excellence in enterprise management.

e. Be a respected corporate citizen, ensure clean and green environment and

develop vibrant communities around.
VISION 2025:
"To be the most efficient Steel Maker having the largest single location in the
country".
MISSION:
To attain 20 million ton liquid steel capacity through technological up gradation,
operational efficiency and expansion; augmentation of assured supply of raw
materials; to produce steel at international standards of cost and quality, and to
meet the aspirations of the stakeholders.
OBJECTIVES:
a) Achieve Gross Margin to Turnover ratio > 10%.

b) Plan for finishing mill to integrate with 7.3 Mt capacity and commission

c) Achieve rated capacity of new & revamped units

d) Capture markets for high-end value added products by focusing on sector

specific applications and customer needs.

e) Achieve leadership in Energy consumption by achieving 5.6 Gcal /tcs

16
 f) Globalization of operations through acquisition of mines and setting up of
marketing network abroad.

g) Diversify through operationalizing of Bhilwara Mines, setting up of

Pelletization plant, DRI-EAF unit, Wheel & Axle Plants.
h) Create a high performance and safe work culture by nurturing talent and
developing leaders.
i) To grow in harmony with the environment & communities around us.

CORE VALUES:
❖ Initiative : Have a self-propelled & proactive approach
❖ Decisiveness: Decide with speed & Clarity
❖ Ethics: Be consistent with professional & moral values.
❖ Accountability: Take responsibility for actions.
❖ Leadership : Lead by example
❖ Spread: Demonstrate swiftness and efficiency in everything we do.

ORGANISATIONAL STRUCTURE OF VISAKHAPATNAM STEEL

PLANT (VSP):

• Chairman cum Managing Director

• Directors, Executive Directors & Company Secretary

• General Managers

• Deputy General manager

• Asst. General Manager

• Sr. Manager

• Manager

• Deputy Manager
17

• Asst. Manager
HRD PHILOSOPHY IN VISAKHAPATNAM STEEL
In Visakhapatnam Steel Plant, believe that there employees are the most
important resources. To realize the full potential of employees, the company is
committed to:
❖ To Provide work environment that makes the employees committed and
motivated for maximizing productivity
❖ To establish systems for maintaining transparency, fairness and equality
in dealing the employees
❖ Empower employees for enhancing commitment, responsibility and
accountability
❖ To encourage teamwork, creativity, innovativeness and high achievement
orientation
❖ To provide growth and opportunities for developing skill and knowledge
❖ To ensure functioning of effective communication channels with
employees.
QUALITY POLICY OF VISAKHAPATNAM STEEL PLANT:
Employees of steel plant are committed to supply are committed to supply
their customers quality products and services. To accomplish this Visakhapatnam
steel plant will:
❖ Manufacture products as per specification and standards agreed with the
customer.
❖ Follow clearly documented procedures for achieving expected quality
standard of products and services.
❖ Continuously strive to improve quality of all material, processes and
products.

Maintain an enabling environment, which encourages actives involvement of all

employees to pursue continuous improvement of quality.
Water Supply:
Operational water requirement of 36 MGD is being met from the YELERU
water supply Scheme.
Power Supply:

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Operation power requirement of 180 to 200 MW is being met through Captive
Power Plant. The capacity of the power plant is 286.5 MWN. VSP is exporting
60 MW power to APSEB.
TECHNOLOGICAL HIGHLIGHTS OF VIZAG STEEL:
❖ First shore based integrated steel plant.

❖ Selective crushing with pneumatic separation of coal blend.

❖ 7 Meter tall Coke Ovens.

❖ Dry Quenching of hot coke and production of steam and power from hot

inert gases. Base-mix yard for the Sinter Plant.

❖ 3200 cu. m Blast Furnace having belled-less top equipment with conveyor

charging. Granulation of 100% molten slag at the Cast House.

❖ B.F. top pressure recovery turbine for power generation.

❖ Desulphurization facilities for pre-treatment of hot metal.

MAIN PRODUCTIONS OF VSP :

MAJOR SOURCES OF RAW MATERIALS
Iron ore lumps fines Bailadilla, M.P
BF lime stone Jaggayyapeta, A.P
SMS lime stone Jaywalker, Rajasthan
BF Dolomite Dubai
SMS Dolomite Madharam, A.P
Manganese Ore Chipurapalli, A.P
Boiler Coal Taicher, Orissa
Coking Coal Austraila
Water Supply Yelluru canal, A.P
Power Supply Captive Power Plant

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MAJOR PRODUCT OF VSP:
STEEL PRODUCTS BY PRODUCTS BY PRODUCTS
Angles Nut Coke Granulated Slag
Billets Coal tar Lime Fines
Channels Anthracene oil Ammonium Sulphate
Beams HP Naphthalene
Squares Benzene
Flats Toluene
Rounds Zylene
Re bars Wash Oil
Wire rods Coke Dust

MAJOR DEPARTMENTS OF VSP:

Departments Annual Capacity Units (3.0 MT Stage)
Coke Ovens 2,261 4 Batteries of 67 Ovens & 7 Mtrs,
height

Sinter Plant 5,256 2 Sinter machines of 312 sq.Mtr.

grate area each.
Blast Furnace 3,400 2 Furnaces of 3200 Cu. Mtr. Volume
each
Steel Melt Shop 3,000 3 LD Convertors each of 133 Cu.
Mtr Volume and six 4 strand bloom
casers.
LMMM 710 4 Stand finishing Mill
WRM 850 2 x10 stand finishing Mill
MMSM 850 6stand finishing Mill

20
 1. RAW MATERIAL HANDLING PLANT (RMHP):
Visakhapatnam Steel Plant requires quality materials viz, Iron Ore, fluxes (lime
stone, dolomite), coking and non-coking coals etc, to the tune of 12-13 mt for
producing 3million tons of liquid steel. To handle Such a large volume of
incoming raw materials received from different Sources and to ensure timely
supply of consistent quality of feed materials to different VSP Consumers, raw
material handling plant serves a vital function. This unit is provided with
elaborate uploading, blending, stacking& reclaiming facilities viz. wagon
tipplers, ground and track hoppers, stock yards crushing plants, vibrating screens,
twin boom stickers and blender recliners.
2. COKEOVENS & COAL CHEMICAL PLANT (CO&CCP):
Blast furnaces, the mother units of any steel plant require huge quantities of
strong, hard and porous solid fuel on the form of hard metallurgical coke for
supplying necessary heat for carrying out the reduction and refining reactions
besides acting as a reducing agent.
Coke is manufactured by heating of crushed coking coal (<3mm) in absence of
air at temperature of 1000 degrees centigrade and above for 16 to 18 hours. A
coke oven comprises of two hollow chambers namely coal chamber and heating
chamber a gaseous fuel such as blast furnace gas; coke oven gas etc is burnt. The
heat so generated is conducted through the common wall to heat and carbonize
the coking coal placed in the adjacent coal chamber.
At VSP there are three coke oven batteries, 7mt tall and having 67 ovens each.
Each oven is having a volume of 41.6cu.mt & can hold up to 31.6 tonnes of dry
coal charge. The carbonization takes place at 1000-1 050 degcenti in absence of
air for 16 to 18 hours. Red hot coke is pushed out the oven and sent to coke dry
cooling plants for cooling to avoid its combustion. There are three dry cooling
plants (CDCP) each having a 4 cooling chambers.
The capacity of each cooling chamber is 50 to 52 TPH Nitrogen gas is used
as the cooling medium. The heat recovery from nitrogen is done by generating
steam and expanding in two back pressure turbines to produce 7.5 powers each.
The coal Chemicals such as Benzene, tar. ammonium sulphate etc are extracted

21
in coal chemical plant from CO gas. The gas is used as by product fuel by mixing
it with gases such as BF gas, LD gas etc.
3. SINTER PLANT (SP):
Sinter is a hard porous ferrous material obtained by agglomeration of iron ore
fines, coke breeze, and lime stone fines, metallurgical wastes etc.
Sinter is a better feed-material to blast furnace in comparison to iron ore lumps
and its usage in blast furnaces help in increasing productivity, decreasing the coke
rate &improving the quality of the hot metal produced. Sintering is done in 2noas.
Of 312sq.mt, sinter machines of Dwight Lloyd type by heating the prepared feed
on a continuous metallic belt made of pallets at 12 00-1300 deg c.18
Hot sinter discharged from sintering machine is crushed to +5mm-50mm size
and cooled before dispatching to blast furnaces. The dust laden air from the
machines are cleaned in the scrubbers and electro static precipitators to reduce
the dust contents to 100mg/m3 level before allowing to escape in to the
atmosphere and thus helping in maintaining a clean and dust pre environment.
4. BLAST FURNACES (BF):
Hot metal is produced in blast furnaces which are tall vertical furnaces. The
furnace is named blast furnace as it runs with blast with high pressure and
temperature. Raw materials such as sinter/iron ore/ lumps, fluxes and coke are
Charged from the top and hot blast at 1100 deg c- 1300 deg c and 5.75 kg pressure
is blown almost from the bottom. The furnaces are designed for 80% sinter in the
burden.
VSP has two 3200 cu. mt. blast furnaces equipped with Paul worth bell less top
equipment with conveyor charging named as Godavari and Krishna after the two
rivers of A.P.
The two furnaces with novel curricular cast house and four tap holes each are
capable of producing 9700 tonnes of hot metal daily or 3.4 million tonnes of low
sulphur annually.
5. STEEL MELT SHOP (SMS):
Steel is an alloy of iron with carbon up to 1.8%, hot metal produced in blast
furnace contains impurities such as carbon silicon manganese silver and
phosphorus is not Suitable as a common engineering metal. To improve the
quality the impurities are to be eliminated by oxidation process.

22
VSP produces steel employing 3 no's of top blown oxygen converters called L.D.
Converters which is having 133 cu mitre. Volume capable of producing 3million
tones of liquid steel annually. Liquid steel produced in L.D. converters is
solidified in the form of blooms in continuous bloom casters. To homogenize the
steel and to raise its temperature if needed steel is first routed through, organ
releasing station input (injection refining and up temp.)/ ladle furnaces.

6. LIGHT AND MEDIUM MERCHANT MILL (L.M.M.M.):

LMMM comprises of two units. In the billet down mill 250 x 320mm size blooms
are rolled into billets of 125 x 125 mm size. After heating them into two nos. of
beam furnaces of 200 tones capacity each. These billets are supplied from this
mill to bar mill of LMMM and wire rod mill.
The billets for rolling in bar mill or LMMM are first heated in two strand roller
earth furnace of 200 t/h capacities to temp. Of 1150 deg c to 1200 deg c. the mill
is facilitated with temp.
Core heat treatment technology evaporative cooling system in walking beam
furnaces, automated piling and bundling facilities and computerization. This mill
designed to produce 7, 10,000 tonnes per annum of various finished products such
as rounds, rebar's, squares, flats, angles, channels.
7. WIRE ROD MILL (WRM):
Wire rod mill is a four strand, 25 strands; fully automated and sophisticated mill.
The mill has a four zone combination type reheating furnace for heating the billets
received from billet mill or LMMM or rolling temp. of 1200 deg c. the mill
produces rounds in 5.5 - 12 mm range and rebar's in 8-12 mm range. The mill is
equipped with standard and retarded steamier lines for producing high quality
wire rods in low medium and high carbon grade meeting the stringent national
and international standards.
8. MEDIUM MERCHANT AND STRUCTURAL MILL (MM&SM)
This mill is a high capacity consisting of 20 strands arranged in three trains. The
feed material to the mill is 250 x 250 mm size bloom which is heated to rolling
temp. of 1200 degree c in two walking beam furnaces. The mill is designed to
produce 8, 50,000 tones /annum of various products such as rounds, squares, flats,
angles, channels, t- bars, IPE beams/he beams.

23
 9. ROLL SHOP& REPAIR SHOP (RS & RS):
Roll shop & Repair shop is in the complex of Rolling mills catering to the needs
of mills in respect of roll assemblies, guides little maintenance spares and roll
pass design. Geographically this dept. is in three areas as Roll shop-1, Rol shop-
2 and Area Repair Shop. The main activity of this shop is Roll pass Design,
grooving of rolls, assembly of rolls with bearings.
For the first time in the country, VSP has adopted CNC technology for grooving
of steel rolling mill rolls. High constant respective accuracy, higher productivity,
use of standard tool for any groove turning, elimination of the use of different
templates, easier to incorporate groove modification etc., are some of the
advantages of CNC lathes over the conventional one.
The Roll Pass design section takes care of design of grooves for development of
new sections, modification of existing pass designs for improving the
productivity and quality. Preparation of rolling schedules, groove detail and
distribution and template drags, part programming for grooving of rolls on CNC
rolls, establishment and lathes. This section also looks after procurement of
improvement of their performance, failure analysis of rolls etc.
MARKETING NETWORK OF VISAKHAPATNAM STEEL PLANT ;
VSP has a wide network of Regional Offices and Branch Offices spread across
the country for marketing of its products. There are5 Regional Offices and 23
Branch Offices. Stock Yards are attached to each of the Branches. These are
catering to the needs and expectations of the customers in various segments. The
details of Regional Offices and Branch Offices are brought out below:
Region Location of Regional Office Branches

East Kolkata Bhuvaneswar, Kolkata, Patna

North Delhi Agra, Chandigarh, Dehradun,

Delhi, Faridabad, Ghaziabad,
Jaipur, Kanpur, Ludhiana

West Mumbai Ahmedabad, Indore, Mumbai,

Nagpur, Pune

South Chennai Bangalore, Chennai, Kochi,

Coimbatore

24
 Andhra Visakhapatnam Hyderabad, Visakhapatnam

POLLUTION CONTROL MEASURES ADOPTED IN VSP:

❖ Defining the scope of its activities Incorporating all legal and other
requirements applicable to VSP.
❖ Agreeing to communicate its "significant aspects" to external parties
through an "Annual Report" each year.
❖ Providing training to all contractors' workers (before starting any work)
and giving them a copy of the "Policy on Safety, Health & Environment"
in 3 languages.
❖ Stipulating the essential environmental requirements in the "General
conditions of Contract" for compliance by all suppliers of
equipment/services to VSP.
❖ The EMS covers 47 departments viz. operation, maintenance and service
departments including the CISF fire wing, training and development
centre and materials management department.

WELFARE AMENITIES OF VISAKHAPATNAM STEEL PLANT:

Modern township with amenities has been developed with 8032 quarters to house
the plant emplovees and other agencies in 11 sections. The township is having
best facilities in terms of drinking water supply, drainage, roads, modern's
hospital, community centre, parks, schools, shopping complexes, recreational
facilities etc.., to cater to the needs of the employees.

PRODUCTION, COMMERCIAL AND FINANCIAL PERFORMANCES OF VSP

1.PRODUCTION PERFORMANCE ('000 TONNES)

25
S. YEAR HOT LIQUID SALEABLE LABOUR
N METAL METAL STEEL PRODUCTIVITY(
O MAN YEAR/TONES)
1 2009-2010 3900 3399 3167 389
2 2010-2011 3830 3424 3077 358
3 2011-2012 3778 3310 2990 414
4 2012-2013 3814 3250 2900 359
5 2013-2014 3769 3391 3016 380

2. COMMERICAL PERFORMANCE (Rs.Crs)

S.NO YEAR SALES DOMESTIC EXPORTS

TURNOVER SALES
1 2009-2010 10635 10284 351
2 2010-2011 11517 11095 422
3 2011-2012 14462 14047 416
4 2012-2013 15451 15041 410
5 2013-2014 13489 12742 489

2. FINANCIAL PERFORMANCE (RUPEES IN CRORES)

S.NO YEAR NET PROFIT CASH GROSS MARGIN
PROFIT
1 2009-2010 797 1525 1603
2 2010-2011 658.49 1247 1412
3 2011-2012 751.46 1454.87 1645
4 2012-2013 366.45 820.63 1158.75
5 2013-2014 366.45 820.63 1158.75

26
PROCESS IMPROVEMENTS:
The structure of formulation of annual plans in the company was revised with the
introduction of the concept of Roll-on plan and accordingly Sustainability Plan
2009-10 & Roll-on Plan till 2013-14 were finalized. This was done with view to
maintain thrust on important aspects without compromising on the long term
goals and also to carry forward unfinished agenda in the plan to subsequent year
after due corrections.
ACHIEVEMENTS AND AWARDS OF VSP:
The efforts of VSP have been recognized in various for a. some of the major
awards received by VSP are in the area of energy conservation, environment
protection, safety, Quality, Quality circles, MOU, sports related awards and a
number of awards at the individual level.
Some of the important awards received by VSP are indicated below:
ACCOLADES & AWARDS
RINL - Vizag steel bags top awards at the international convention on quality
control circles on Dec 3rd 2020 .
RINL has been awarded excellent energy efficient unit award by CIl GBC the
national energy leader on 25th Aug2020.
RINL-Vizag steel bestowed with first National Conservation Award on 14th Dec
2020.

SWOT ANALYSIS OF VSP:

The strengths and weaknesses of RINL brings forth the opportunities and threats
facing RINL, with a view to buildings up on the strengths, exploiting the
opportunities, improving upon the weaknesses and converting the threats into
opportunities. The strengths, weaknesses, opportunities and threats of RINL are
as under:
S-STRENGTHS
❖ State-of-the-art technology
❖ High commitment to achieve capacity levels
❖ Areas of excellence
❖ Economics of scale
❖ High expansion potential
❖ Strong commitment to conserve environment.
27
W-WEAKNESSES

❖ High capital rated charges

❖ Low return product-mix
❖ Productivity below international levels
❖ Practices not as par with international standards

T-THREATS

❖ Shore based
❖ Sizeable export markets
❖ Access to import resources
❖ Proximity to southern markets
❖ Increasing domestic demand due to thrust on infrastructure development

O-OPPORTUNITIES

❖ Rising input costs

❖ Increasing competition
❖ Sensitive to exchange rate variation
❖ Possibility of import duties declining further
❖ Excise duties continue to be high
❖ Lack of alternative sources for major raw materials
❖ Major market place(North & West) located far off
❖ Infrastructure continue to be inadequate

28
 VSP's state-of-the- art technology, high expansion potential and economies of
scale would be utilized for off setting the disadvantages of low return product-
mix and high capital related charges. Shore based location of the company would
promoted export and import of a quality raw materials. Proximity of VSP to
southern markets can help in capturing larger market share in south. VSP would
meet the increasing competition through its quality products and customer
orientation.
FUTURE PLANS OF VIZAG STEEL PLANT :
With the kick starting of the second phase of RINL, your company has
now embarked in chalking out the growth path for future. As mentioned earlier,
the Corporate Plan 2020 is under preparation to leverage the inherent strengths
and create more value to the stake holders. As the steel industry becomes more
and more technology driven, the need for intensifying the R&D activities has
become more imperative and due care is taken to strengthen this area further. The
integration of the existing assets with the emerging technologies and
diversification of activities in line with the market needs are the broad areas of
focus in the Corporate Plan to be released shortly.

29
 CHAPTER -4
THEORTICAL FRAME WORK

30
MEANING AND DEFINITION PERFORMANCE APPRAISAL
Performance appraisal is the process of measuring quantitatively and
qualitatively an employees' past or present performance against the background
of his expected role performance, the background of his work environment, and
about his future potential for an organisation. The evaluation of the Performance
and personality of each employee is done by his immediate superior or some
other person trained in the techniques of merit rating. Various rating techniques
are employed for comparing individual employees in a group in terms of personal
qualities or deficiencies and the requirements of their respective jobs. A few
important definitions of performance appraisal arc as follows
According to Edward Flippo "Performance appraisal is the systematic, periodic
and an impartial rating of an employees’ excellence in matters pertaining to his
present job and his potential for a better job.

FEATURES OF PERFORMANCE APPRAISAL

The main characteristics of performance appraisal are as follows.
1. Performance appraisal is a systematic process consisting of a nu of steps to be
followed for evaluating an employee's strength is a weaknesses.
2. It is a systematic and objective description of an employee's Strengths and
weaknesses in terms of the job.
3. The appraisal is an ongoing and continuous process where evaluations are
arranged periodically according to a definite plan. It is not a one shot deal.
4. The performance appraisal seeks to secure necessary for making objective and
correct decisions on the employees.
5. Performance appraisal may be formal or informal. The formal system is more
fair and objective since it is carried out in a systematic manner using printed
appraisal forms.
OBJECTIVES OF PERFORMANCE APPRAISAL
Performance appraisal can be carried out with various objectives in mind and
these objectives can be classified under the following four heads.
(a) Work-Related Objectives
i) To assess the work of employees in relation to job requirements.
ii) To improve efficiency

31
iii)To help management in fixing employees according to their capacity, interest,
aptitude and qualifications
(iv) To carry out job evaluation
(b) Career Development Objectives
i) To assess the strong and weak points in the working of the employees and
finding remedies for weak points through training
ii) To determine career potential
iii) To plan promotions, transfers, lay offs etc. of the employees
iv) To plan career goals
c) Communication
i) To provide feedback to employees so that they come to know where they stand
and can improve their job performance
ii) To clearly establish goals i.e. what is expected of the employee in terms of
performance and future work assignments
iii) To provide coaching, counselling, career planning and motivation to
employees
iv) To develop positive superior-subordinate relations and thereby reduce
grievances.
d) Organisational Objectives
i) To serve as a basis for promotion or demotion
ii) To serve as a basis for wage and salary administration and considering pay
increases and increments
iii) To serve as a basis for planning suitable training and development
programmes
iv) To serve as a basis for transfer or termination in case of reduction in staff
strength.
BENEFITS AND USES OF PERFORMANCE APPRAISAL
Performance appraisal can be put to several uses concerning the entire
spectrum of human resource management functions.
The important benefits and uses which justify the existence of a system of
performance appraisal in an organisation are as follows

32
 i) An effective system of performance appraisal helps the supervisor to
evaluate the performance of his employees systematically and
periodically, it helps in the placement of the employees on the jobs for
which they are best suited.
ii) The results of performance appraisal may be used by the supervisor in
constructively guiding the employees in the efficient performance on
the jobs.
iii) Performance appraisal provides the management an objective basis for
discussing salary increases and special increments of the staff.
iv) Performance appraisal can be used for transfer and promotions of
employees, if the performance of an employee is better than others he
can be recommended for promotion, but if h he is not doing well he may
be transferred to some other job for which he is best L suited.
v) Appraisals can be used to analyse the training and development needs
and evaluating the effectiveness of existing training programmes
Weaknesses of the employees revealed through performance appraisal
can be removed through further training.
vi) Performance appraisal facilitates human resource planning career
planning and succession planning.
vii) When achievements are recognised and rewarded on the basis of
objective performance measures, there Is improvement in work
environment.
viii) Performance appraisal provides an incentive to the employees to better
their performance in a bid to improve their rating over others.
ix) Systematic appraisal of performance helps to develop confidence
among employees. It will prevent grievances, if the employees are
convinced of the impartial basis of the evaluation.
x) Thus, performance appraisal is a significant element of information and
control system in organisations. It can be put to several uses concerning
the entire spectrum of human resource management functions.

LIMITATIONS OF PERFORMANCE APPRAISAL

Annual performance review leaves people d in desire for depressed and months.
In the words of W. Edwards "Annual performance review leaves people bitter,
dejected, depressed and in despair for months." Both the appraiser and the
appraised consider it an unpleasant task as no performance appraisal system can
be perfect and free from personal biases and other defects. Performance appraisal
may not yield the desired results because of the following elements:

33
1. Hallo Error. The hallo error or effect is a tendency to evaluate person on
the basis of one trait of characteristic. The appraiser judges performance
on the strength of a specific trait and does not base his inference on his
overall performance. An individual may be consistently rated high, average
or low on various traits depending upon the rater’s depending upon the
rater's overall judgement of the person. If the rater is friendly to a worker,
he may consistently rate him outstanding. the other hand if a person is
unfriendly then he may be rated below average even if his performance on
the job is very good, Hallo effect may be controlled if the rater is given a
list of characteristics and is asked to evaluate persons characteristics-wise.
2. Central Tendency. It is the most commonly found error in merit rating This
error arises when the rater is not sure about the performance of a person, may
not be well conversant with his work or may have less time at his disposal. He
will like to play safe in evaluating persons and will rate them as average.
Neither he will rate them having poor performance not he will rate them
outstanding. The rater follows a via media and gives mediocre reports to the
subordinates about whom he does not want to commit. This type of tendency
on the part of evaluators distorts the evaluation, making them most useless for
promotion, salary or counselling purposes.
3. Leniency or Strictness. The evaluators have their own value system which
acts as a standard for evaluation. Some evaluators may be lenient and will give
high rating to everyone. On the other hand, an evaluator may be strict and will
give low ratings to all persons. The tendency of giving high rating is known
as positive leniency error and the tendency of giving low ratings is called
negative leniency error. Both the trends can arise from varying standards of
performance observed by supervisors and from different interpretations of
what they observe in employee performance. The raters should be trained for
evaluation purpose and be told of what is expected from ratings.
4. Similarity Error. This error arises from the mental make up of an evaluator.
The evaluator uses his own trait as a basis for assessing the employees. If the
rater is aggressive then he will try to find this trait in subordinates. Those who
have this trait will be rated high and those who do not have it will be rated
low. Thus error can be washed out if the same rater appraises all employees in
the organisation.
5. Miscellaneous Biases. Bias may exist on the ground of sex, race, religion,
position, etc. The persons on higher positions may be given higher ratings. A
rater may also give high ratings to his group because persons in other groups

34
may not get higher pay rises than his subordinates. A rater may have
preference for persons belonging to his own sex, race, religion, etc.
6. Faulty Assumptions. There are faulty assumptions about the performance
appraisal system both by the superiors and the subordinates. These
assumptions work against the effectiveness of this system. The assumptions
are :
(a) The assumption that superiors will make impartial assumption of
subordinates is not practical. Both show tendency to avoid appraisal processes.
(b) It is assumed that appraisal system once implemented properly will be
utilised in every project. This is too much of expectation from the system.
(c) Superiors sometimes feel that their personal judgement of the subordinates
is better than that of appraisal system.
(d) The thinking that employees want to know about their appraisal is not
correct. In fact employees try to avoid appraisal system.
7. Psychological Blocks. The utility of appraisal system: will depend upon the
skills of the users. This system will depend upon the psychological
characteristic of managers, no matter what method is being used. There are
many psychological blocks working against this system. Managers consider
appraisal as an extra burden, they try to treat subordinates' failure as their own
dislike to communicate unfavourable reports to subordinates. Because of these
psychological blocks managers do not tend to become impartial or objective
in evaluating the subordinates.

PERFORMANCE APPRAISAL PROCESS

Performance appraisal should be done on the basis of certain standards or
criterion fixed in advance. The employees should also have the knowledge of
the yardsticks to be used for evaluating them. Unless a proper process is used
for evaluation, it will not give good results. Following process is used for
merit-rating

35
 Standards help in setting yardsticks for evaluating performance

Establishing performance
standards

Communicating standards and

expectations

Measuring the actual performance

Comparing with Standards

Discussing results
(Providing feedback)

Decision making -taking corrective actions

1.Establishing Standards: The employees will have to be rated against the

standards set for their performance. There should be Some base on which one
may say that the performance of a person is good, average, bad etc. The
standards may be in quantity and quality of production in case of workers:
personality traits like leadership, initiative, imagination in case of executives:
files cleared in case of office staff, etc. These standards will help in setting
yardsticks for evaluating performance.
Employees should know what is expected from them.
2.Communicating Standards to Employees: The standards set for
performance should be communicated to the employees. They should know
what is expected from them. In the absence of any knowledge of standards,
the employees will keep on guessing only. When the standards are made
known to employees, they will try to make their performance equal or above
them. Even later on they will not resent adverse reports if they fail to achieve

36
certain standards. It is essential to get feedback from employees whether they
have followed the standards as is intended by the management.
3. Measuring Actual Performance: The next step in evaluation process is to
measure actual performance of employees. The performance may be measured
through personal observation, statistical reports, oral reports, written reports
etc.
4. Comparing Actual with Standards: The actual performance is compared
to the standards set earlier for finding out the standing of employees. The
employee is evaluated and judged by his potential for growth and
advancement. Deviations in performance are also noted at this stage.
5.Discussing Reports with Employees: The assessment reports a
periodically discussed with concerned employees. The weak points, good
points and difficulties are indicated for helping employees to improve their
performance. The information received by employees influences their
performance. It a influences their attitude and work in future. It may be easy
to convey good reports but it requires tact to discuss adverse reports.
6.Taking Corrective Action: Evaluation process will be useful only
corrective action is taken on the basis of reports. One Corrective action may
in the form of advice, counsel, warning etc., other action may be in the form
assignments, coaching etc. These actions will be useful in helping employees
to of additional raining. refresher courses, delegation of more authority,
special improve their performance in future.

37
METHODS OF PERFORMANCE APPRAISAL
Several methods and techniques are used for evaluating employee
performance. These may be classified into two broad categories as shown in
the following figure.

METHODS OF
PERFORMANCE APPRAISAL

TRADITIONAL MODERN
METHODS METHODS

▪ STRAIGHT RANKING ▪ MANAGEMENT BY

METHOD OBJECTIVES

▪ PAIRED COMPARISON ▪ 360 DEGREE

METHOD PERFORMANCE
APPRAISAL

▪ GRAPHIC RATING SCALE

METHOD ▪ ASSESMENTS
▪ GRADING METHOD CENTER METHOD
▪ FORCED DISTRIBUTION
METHOD ▪ BEHAVIORAL
ANCHORED RATING
▪ CRITICAL INCEDENT SCALE METHOD
METHOD ▪ HUMAN RESOURCE
▪ CHECK LIST METHOD ACCOUNTING
▪ ESSAY APPRAISAL METHOD METHOD
▪ FIELD REVIEW METHOD

38
 A. Traditional Methods.
Traditional approach is also known as traits approach. It is based on
the evaluation of traits in a person. This system may list ten to fifteen personal
characteristics such as ability to get along with people, competence,
judgement, initiative, leadership etc.. There may also be added work related
characteristics such a job knowledge, ability to complete an assignment.
Success in carrying out plans, efforts in cost reduction etc.. In the recent past,
personal traits have outnumbered work related characteristics. The rater
appraises subordinates on the basis of these standards and gives his rating.
Since there may be different methods of rating people on the basis of such
dimensions, there are several methods based on this approach. Some such
methods are discussed as follows.
1) Straight Ranking Method:
It is the oldest land simplest method of performance appraisal by which the
man and his performance are considered as an entity by the rater. No attempt is
made to functionalize the rate or his performance. Ranking method is a technique,
evaluator assigns relative ranks to all employees in the same work unit doing the
same job. Employees are ranked from the best to the poorest on the basis of
overall performance. The relative passion of an employee is reflected in the
numerical rank. It is one of the simplest methods. It is time saving and
comparative evaluation technique of appraisal.
The ‘workman’ is compared with the ‘whole man’ that is the ranking of
man in awork group is done against that one of another. But this greatest
limitation of this method used for paired comparison technique. As per the
technique every employee to compare a single individual having various
behavioral traits. The task ranking individuals is difficult when a large number of
persons are rated.
2) Paired Comparison Method:
In this method, certain factors are selected for the purpose of analysis
and the rater for each factor designs a scale. A scale of man also created for each
selected for each factor. Then each man to be rated is compared with the man in
the scale, and certain scores are awarded to him. In other words, a whole man is
compared to a “key man” in respect of one factor at a time. This method is used
in job evaluation and is known as the factor comparison method.
This technique was used by the USA Army during the First World War.
By this method certain factors are selected for the purpose of analysis such as

39
leadership dependability, initiative and a scale is designed rates for each factor.
In other words comparing “whole mam” to Whole man personnel is compared to
the key man in respect of one factor at a time. This method is used in a job
evaluation and is known as the factor comparison method.
3) Graphic Scales Method. The graphic rating scale is the simplest and most
popular method for appraising performance. A rating scale lists traits and a
range of performance values for each trait.. The supervisor rates each
subordinate by circling or checking the score that best describes his
performance for each trait. The assigned values for the traits are then totaled.
The selection of factors to be measured on the graphic rating scale is an
important Point under this system. These are of two types (i) characteristics
such as initiative and dependability and (i) contributions such as quantity and
quality of work
Since certain areas of job performance cannot be objectively measured, likely
that graphic scale will continue to use a mixture of both characteristics and
contributions.
Rating scales are of two types viz.. continuous and discontinuous. In
continuous scale the degree of a trait are measured in numbers ranging from 0
to 5 whereas in a discrete or discontinuous scale, appropriate boxes or square
are used. The 1ollowing figures contain the rating scales :

Continuous Rating Scale

40
 S
astic

N I I ff I h V
h
The graphic scale is the most common method of evaluation of an employee's
performance. Its main advantages areR that it is easy to understand, easy to use
and permits a statistical tabulation of scores of employees. When ratings are
objective in nature, they can be effectively used as evaluators.
Graphic scales, however, impose a heavy burden upon the supervisor. He
must report and evaluate the performance of his subordinates on scales
involving as many as five degrees on perhaps ten different factors. Moreover,
this method may be arbitrary and the rating may be subjective. It may be
difficult to decide about relative weightage of different traits and it may be
difficult to ensure uniformity as rating would differ with different raters. In
practice, rating tend to cluster on the high side under this system. A supervisor
may tend to rate his men high to avoid criticism from them.
4) Grading Method:
Under this method, the rater considers certain factors and marks them accordingly
to a scale. The selected factor may be analytical ability, co-operation,
dependability self- expression, job knowledge. They may be grades as ‘A’ –
outstanding, ‘B’ – very good, ‘C’ – good/ averages, ‘D’ – fair, ‘E’ – poor. The
actual performance of an employee is then compared with these grade definitions
and he is allotted the grade which best described his performance.
Under this system the rater considers certain features and marks them
accordingly to be scale.
A – outstanding
B – very good
C – good/ averages
D – fair
E – poor
0 5 10 15 20

41
 The selected may be analytical ability, co-operative ness, dependability,
self-expression, job knowledge, judgment leadership and organizing ability. The
actual performance at an employee is then compared with this grade definition
and he is allotted the grade which describes his performance.
5) Forced Distribution Method:
In these techniques the rater appraises an employee according to a per-
determined distribution scale. It is assumed that it is desirable to rate only two
factors by this method that is job performance and promo ability. For this purpose
a five poking performance scale is used without any descriptive statement and
employees are placed between two extremes of good and bad performance.
Under this method the rating elements are several sets of paid phrases
adjectives relating to job proficiency or personnel qualification. The method has
certain such as while choosing statements from each series. The rate is unable to
introduce personnel bias o hallo effect as only one of the favorable phrases in
each series is related to success of failure on the job.
In this method, the rating elements are several sets of pair’s phases or adjectives
relating to job proficiency or personal qualification. The rater is asked to indicate
which of the phrases is most and least descriptive of the employee.
Under this method the rating elements are several sets of paid phrases adjectives
relating to job proficiency or personnel qualification. The method has certain such
as while choosing statements from each series. The rates is unable to introduce
personnel bias on hallo effect as only one of the favorable phrases in each series
is related to success of failure on the job.
6) Critical Incident Method:
In this method the superior keeps a written recorded or critical (either good or
bad) events and how different employees behaved during such events. The rating
of the employee depends on the positive or the negative behavior during these
events. These critical incidents are identified after through study of the job and
discussions with the staff. This method helps top avoid vague impression and
general remarks as the rating is based on actual records of behavior.
The method was developed and conducted by the armed forces in the United
States during World War II. The essence of this system is that if attempt to
measure workers performance in terms of certain events or episodes that occur in
the performance of the rates job. These events are knowing as critical incidents.
The supervisor keeps a written record of the events (either good or bad)
that can easily be recalled and used in the courses of a periodical or formal
42
appraisal. Feedback is provided about the incident during performance review
session.
The critical incident is discovered after a through study of the personnel
working on a job. The collected incidents are than tanked in a order of frequency
and importance. “This approach reduces the ‘regency’ effect of most performance
ratings.”
7) Essay Appraisal Method:
Under this method, a group of evaluators assess employees. This group consists
of the immediate supervisors of the employee, other supervisors having close
contact with the employer’s work, hard of the department and a personnel expert.
The group determines the standards of performance for the job, measure actual
performance of an employee, analysis the causes of poor performance and offers
suggestions for improvements in future.
This method, employees are rated by an appraisal group, consulting of their
supervisor and three or four other supervisors who have some knowledge of their
performance. The supervisor explains to the group the nature of sub-ordinates
duties. The group then discusses standards of performance for that job. The actual
performance of job-holder and the causes of their particular level of performance
and others suggestions for future improvements.
The advantage of this method is that if is through very simple and devide at any
bias for it involves multiple judges. But it is very time consuming.
8) Checklist Method:
In this method, series of questions are presented concerning an employee’s
behavior. Here rater does not evaluate employee performance; he supplies
reports about it and the personnel department does the final rating.
Under this method does not evaluate employee performance, he supplies
reports about it and the final rating is done by the personnel dept. a series of
questions are presented concerning employee to his behavior. The rater than
checks to indicate if the answer to question about an employee is yes or no.
This is the one of the method of traditional methods in the performance
appraisal method. and in this method check the all the records of the
employees and he supplies reports to the personal departments are done by the
final rating about the employees.

43
9) Field Review Method:
In this method, a trainer employee from the personnel department
interviews line supervisors to evaluate respective subordinates. The supervisor is
required to give his opinion about the progress of his subordinates and his plan of
action in cases requiring for consideration.
The traditional methods given above focus on the traits of an employee than
his job performance. In this absence of predefined performance criteria or
standards, the personal bias or subjectivity of the evaluator affects the rating. This
approach caused the following responses:
▪ The very nature of the appraisal system led to criticism.
▪ Criticism exercised a negative impact on goal attainment.
▪ Criticism increased antagonism and defensiveness among employees
resulting in inferior performance.
▪ Managers generally are not qualified to assess personality traits.
▪ Some managers discourage good performance by over emphasizing
shortcomings and almost neglecting good work.
MODERN METHODS:
The modern methods are as follows
1. Management by Objectives (MBO):
The concept of management by objectives was developed by peter
Drucker in 1954. Since then MBO has become an effective and operational
technique of performance appraisal and a powerful philosophy of managing.
Process of MBO:
❖ Set Organizational Goals: Goals of the organization in key area of
performance are laid down. These goals are defined in clear, precise and
measurable terms. A through analysis of internal and external of the
organization is made to set these goals.
❖ Defining Performance Targets: On the basis of organizational goals,
performance standards for each employee are defined. Every subordinate
writes down his own performance goals, which are work related and career-
orientated. His manager also writes down the goals he thinks the
subordinate should strive for. The two then discuss them, reach an
agreement and put the agreed goals in writing. Thus, employees at all levels
are involved in goal setting. The goals are periodically reviewed and revised
to keep them flexible and up-to-date.

44
 ❖ Performance Review: Frequent performance reviews meetings between
manager and sub-ordinates are held. In these meeting progress is assessed,
weaknesses and constraints are identified and steps to taken to improve
performance are decided. Sub-ordinates activity participate in this process.
This leads to self- control by the employee.
❖ Feedback: After every performance review feedback on performance is
communicated to the employee so that he can regulate and improve upon
his own performance. On the basis of performance review rewards are
decided. New goals and performance targets are determined for the next
period.
For successful implementation of MBO, the following are required.
➢ Quantifiable and measurable goals that are neither too easy not too
difficult to achieve.
➢ A well- laid out action plan providing for contingencies
➢ Employees who are suitable equipped and motivated to achieve these
goals.
➢ Continuous and constructive feedback and guidance
➢ Objective evaluation of the performance
➢ Identification of areas for improvement and corrective actions.
Advantages:
▪ Ends – means chain
▪ Role clarity
▪ Objective appraisal
▪ Motivation and commitment
▪ Management and development
▪ Co-ordination
Limitations:
▪ Difficulty in goal setting
▪ Problem of participation
▪ Lack of understanding
▪ Time- consuming and expensive
▪ Inflexibility

2. 360 Degree Performance Appraisal:

This is a new concept in performance appraisal, where the feedback is collected
from all around the employee, the superior, the sub-ordinates, the peer groups,
45
and the customers. The evaluation is very comprehensive in terms of the
employee’s skills, abilities, styles and job-related competencies.

peers Customers

360 degree
Performance appraisal

Supervisors Sub ordinates

Supervisor
It is the responsibility of the supervisor to ensure that his subordinates
perform their jobs well. Hence, the authority to evaluate the employee
performance has traditionality been with the supervisor has a very important role
to play in the appraisal of his subordinates.
Peers
Peers evaluation is a very sensitive area as it may lead to false and
unhealthy appraisals, because of the competition among peers. The organization
has to reach an advanced stage of development before it can handle peer appraisal
has to used to assess the communication and interpersonal skills of the employee,
which can effect the team performance.
Customers
The performance of an employee has a direct and immediate impact on his
customers either internal or external. In service organization like banks and
hotels, customer feedback has become the most important to in evaluating
employee performance. In manufacturing the internal customer evaluate the
performance of the employee.

46
Sub-ordinates
The concept of the subordinates evaluating the performance of his supervisor
is yet to gain acceptance in most Indian companies. The Indian company done
not encourages the idea of sub-ordinate appraisal.
Advantages of 360 degree performance appraisal:
▪ Higher validity and reliability of the evaluation.
▪ Self-evaluation by the employees gets compared with the perception
of others.
▪ Helps in maximizing employee potential in the face of challenges.
▪ Ratings are likely to be accurate because these are done by experts.
▪ The method is more reliable and valid as it is job specific and identified
observable and measurable behavior.
▪ The use of critical incidents is useful in providing feedback to the
employee being rated.
Limitations of 360 degree performance appraisal:
▪ It is time consuming and expensive to develop BARS for every job.
▪ Behaviors used are more activity oriented than results oriented.
3. Assessments Center Method;
An assessment center is a group employee drawn from different work units. These
employees work together on assignments similar to the one they would be
handling when promoted. The most important feature of the assessments center
is job-related simulations. Evaluators observe and rank the performances of all
participants. This group evaluates all employees are both individually and
collectively by using simulations techniques like role-playing, business games
and in-basket execrises? Employees are evaluated on the basis of job-related
characteristics considered important for job success.
The evaluators prepare a summary report and feedback is administered
on a face-to-face basis to the employees who ask for it. An assessment center
generally measures interpersonal skills. Assessment centers are not only methods
of appraisal but help to determine training and development needs of employees
and provide data for human resource planning.
Purpose of assessment center:
➢ To measures potential for first level supervision, sales and upper
management positions; and also for higher levels of management for
development purposes.
➢ To determining individual training and development needs of employees.
47
 ➢ To select recent college students for entry level positions.
➢ To provide more accurate human resource planning information.
➢ To make an early determination of potential.
➢ To assist in implementing affirmative action goals.
It is used mostly to help select employees for the first level supervisory
positions. Assessment is made to determine employee potential for purpose of
promotion. The assessment is generally with the help of a couple of employees
and involve a paper-and- pencil test, interviews and situational exercises, like in
basket exercises, business game, role playing incident and leader less group
discussions.
4. Behavioral Anchored Rating Scales (BARS):
This method combines graphic rating with critical incidents method. BARS
are descriptions of various degrees of behavior relating to specific performance
dimensions. Critical areas of job performance and the most effective behavior for
getting results are determined in advance. The rater records the observable job
behavior of an employee and compares these observations with BARS. In this
way an employee’s actual behavior is judged against the desired behavior. These
steps involved are;
❖ Identify critical incidents: Persons with knowledge of the identify job
to be appraisal describe specific examples of both effective and ineffective
job behaviors.
❖ Select performance dimensions: The persons then cluster the behavior
incidents into a smaller set (usually 5-10) of performance dimensions.
❖ Retranslate the incidents: Another group of knowledge persons assign
each incidents to the dimension that it best describes. Incidents for which
there is less than 75% agreement with the first group are not retranslated.
❖ Assign Scales to incidents: The second group rates each incident on a 7
or 9 point scale. Rating is done on the basis of how well the behavior
described in the incident represents the performance on the appropriate
dimensions. Means (average) and standard deviations are then calculated
for the scale values assigned to each incident.
❖ Develop final instrument: A subset of the incidents that meets both the
retranslation and standard deviation criteria is used as a behavioral anchor
for the final performance dimensions. A final BARS instrument typically
comprises a series of vertical scales that are endorsed by the include
incidents. Each incident is positioned on the scale according to its mean
value.
5. Human Resource Accounting Method:

48
 Human resources are a valuable asset for any organization. This asset
can be valued in terms of money. When competent and well trained employees
leave an organization the human asset is decreased and vice versa. Under this
method performance is judged in terms of costs and contributions of employees.
Costs of human resources consists of expenditure on human resource planning,
recruitment, selection, induction, training, compensation, etc. contribution of
human resources is the money value of labor productivity or value added by
human resources. Difference between cost and contribution will reflect the
performance of employees. This method is still in the transitory stage and is
therefore, not popular at present.
The human asset accounting method refers to activity devoted to attaching
money estimate to have the value of firm’s internal human organization and its
external customer goodwill.
The current value of human organization can be appraised by developed
procedures by undertaking periodic measurements of “key causal” and
“intervening enterprise” variables. The key causal variables include the structure
of organization management policies, decisions business leader ship strategies,
skill and behavior.

STEPS FOR MAKING APPRAISAL SUCCESSFUL:

▪ Existence of an atmosphere of confidence and trust.
▪ The results of performance rather than personality traits should be given
due weight.
▪ The supervisor should analyze the strengths and weaknesses of the
employee and advise him.
▪ The appraisal programmed should be less time consuming and less costly.
▪ The results of appraisal should be immediately communicated to the
employee.
▪ A post appraisal interview should be arranged.
▪ Training can be used to improve the standards of performance appraisal.
▪ The right appraisal tools should be chosen to minimize arising problem.

49
PERFORMANCE APPRAISAL AT VISAKHAPATNAM STEEL
PLANT.
Introduce in 2016-2023
Introduction

Scope
The Executive Performance Management System is aimed at performance and
development planning and assessing the performance, potential, competencies
and values of all executives, including supervisory cadres and deputationists up
to E-7 grade. In respect of executives in E-8 and E-9 grades the format as
circulated by PESB will remain in vogue.

Objectives of Performance Appraisal System

❖ To enable employees to plan their work, utilize their capabilities
and maximize their contribution.
❖ To create a performance culture through continuous performance
improvements of individual employees, teams and the
organization.
❖ To identify and develop leadership talent for future.

COMPONENTS
The components of the Executive Performance Management System are

50
 Performance Planning

Assessing and developing

competences for the future
Reporting Relationship
Components of EPMS

Development Planning

Special Provision

Online System of EPMS

Performance Review &
Assesment
Final performance categorization
of rating by PMC
Conversion Table
Communication of Performance
Grating to executives transparency
system of representation & disposal
Assessement of Assessors for
higher acctountability
Team Apprisal

1. Performance Planning :
Purpose and philosophy:
Performance planning will contribute significantly to role clarity, competency
utilization, potential development and performance improvements.
By the use of this component, the following outcomes are expected to be
achieved:
i. The Departments will be clear of their activities at the beginning of he year.
Every department or section will bring to sharp focus its Key activities,
processes involved and planned results/outcomes.
ii. Every executive will be clear about what Key Performance Areas (KPAs)
he/she is expected to undertake, with what time investments and with what
results/outcomes.

51
iii. There will be clear cut understanding of the way each individual
executive's contributions are related to and/or effect the achievement of
departmental and organizational goals and achievement of Sustainability
MoU plan.
iv. The process is also expected to lead to better time and competency
management of executives and thus contribute to organizational
efficiencies.
Planning of performance is to be done at Individual, Sectional and Departmental
level. This will flow from a Departmental Goal Setting Cascade exercise.
The Goal Alignment Cascade exercise would be a process of sequentially
breaking down organizational objectives and targets into those of various levels
in the organization and then Departments to Individuals concerned. The
individual KPAS (Key Performance Areas) would also include KPAs over and
above these cascaded ones which are applicable to departments, functions and
individuals.
Operational details :
i. In the beginning of the performance year (i.e. April every year), all
departments are to plan their Departmental & Individual Key Performance
Areas (KPAs) in line with the departmental goals through Goal Alignment
Cascade Exercise keeping in view the Sustainability MoU plan of the
company.
ii. Individual KPAs along with maximum marks/weightages and criteria for
evaluation are to be assigned in consultation with Reporting Officer and
concurrence of HoD.
iii. The KPAs shall have total weightage of 60 points for executives up to E-5
grades and 50 points for E-6 /E-7 grade executives.
iv. KPAS are to be further classified as under :
a) Routine KPAs (i.e. jobs of routine nature and at the same time critical
contributions of the officer like filing of statutory returns for an accounts
Officer or plant supervision for a shift in-charge.
b) Non-routine KPAS / Special Projects: Non-routine KPAs are key
contributions of the role holder other than the routine activities.
Special projects are to be undertaken at the initiatives of the executive
concerned. Special projects are those which are not a part of the current job, tasks
and responsibilities but undertaken by the individual on his/her initiative to make
a difference in the organization and demonstrate his/her leadership competencies.
These projects may become critical inputs for future leadership assessments.

52
The special project KPAs should be contributions beyond the role of the executive
concerned and are meant to develop future potential leadership qualities of the
individual. Senior executives should encourage their subordinates to undertake at
least one special project in a year and allocate around 5% of the executive's time
for the same.
As we go up in the managerial hierarchy, it is envisaged that the percentage of
Non-Routine KPAs / Special Projects will increase.
V . The performance plan to also indicate the time to be spent by each executive
each of the KPAs and should have a shared understanding between the individual
executive and his Reporting Officer of the nature of activities to be undertaken
time estimates and linkages with departmental goals or targets.
(vi) Goal Alignment Cascade Exercise/ Departmental Planning: The KPAS
will be
based on the Performance Planning and Goal Alignment Cascade (PP&GAC)
exercises to be conducted at the beginning of April each year.
a) The responsibility of conducting the performance planning and goal
alignment exercise rests with the respective HoDs and the departmental
action plan needs to be prepared and communicated to all concerned by
15h April each year.
b) The departments will ensure that the critical activities required to be
undertaken are identified and completed by each department/
section/function during the year with specific time frame and milestones.
c) During the finalization of KPA, care is to be taken that the KPAS not less
than 5 quantifiable and observable KPAs for each executive for the
assessment year are planned involving SMART features i.e., Specific,
Measurable, Attainable, Realistic and Time Bound. Individual as well as
Reporting Officer should also try to prepare measurable criteria for
evaluation of KPAs so that performance against KPAs can be measured
objectively.
2. Assessing and developing competencies for the future- Competencies,
Potential and values
Purpose and Philosophy :
By now it is well established that as one moves higher in managerial hierarchy,
the managerial and leadership competencies become more critical. In future,
younger managers will be taking up leadership and top management positions in
RINL. For facilitating their success at a later stage, managerial and leadership

53
competencies need to be developed from early stages itself. To prepare executives
for future leadership roles and to ensure that they are equipped with competencies
required to perform their current roles as well as the likely roles in future, the new
EPMS has given due weightage to three sets of competencies. These include :
i. Competencies required by all executives to perform their current
managerial roles;
ii. Competencies required to prepare them for future roles (Potential factors),
and
iii. The Values needed to be demonstrated by executives all through their
career.
Operational Details
i. Every executive is required to exhibit certain competencies while
achieving their KPAs. The performance, competencies, potential factors
and values will carry different weightages as given below.
Components Up to E-5 Grade E-6/ E-7 Grade
Performance 60 50
Competencies 15 20
Values 15 15
Potential 10 15
Total 100 100

ii.The competencies need to be discussed along with KPÁS and common

understanding arrived at for exhibiting these competencies and the indicators of
these competencies.
iii.The competencies required to be exhibited by every executive will include the
following:
A) Competencies:
i)Technical /Functional competencies
ii) Commercial acumen
iii) Interpersonal skills and team work
iv) Proactive Problem solving and Initiative
V) Communication skills (listening, clarity of thought and expression, written and
oral)

54
Positive attitude (viewing things positively and with optimism and not being
critical or cynical of everything ; ability to look at brighter side of change and
Various other decisions, policies and innovations etc., and not being over critical
or all the time critical of people and events, etc.)
B) Potential factors
These are the qualities that become increasingly critical for senior management
positions and are meant to prepare executives for handling higher roles as they
grow in the organization. These are their ability to handle higher responsibilities
including the following or more:
(i) Vision and Strategy
(ii) Ability to assume responsibility
(iii) Execution ability
(iv) Change Management (openness to change, initiate and manage change)
v) creativity
C) Values:
These include beliefs, behaviours and actions (DEALS) that are to be exhibited
by every
i) Initiative
(ii) Decisiveness
(iii) Ethics
(iv) Accountability
v) Leadership
(vi) Speed
Apart from the above values, there will also be judgment of integrity and
character of the individual concerned, which is defined below :
"Integrity and Character - defined as coherence between thought, word and deed
• Speaking fearlessly what one feels (not having one thing in mind and
speaking different things to please people or gain advantage of some kind
or the other)
• Attempting to keep up promises or verbal commitments (doing what he
says)y"

55
In the beginning of the year, if any executive would like to receive training or any
development inputs on any of these competencies (example, communication
skills, vision, change management skills, etc.) may incorporate the same into his
Development Plan as explained in Development Planning-
At the end of the year there will be self-assessment by the individual indicating
both quantitatively and qualitatively and his assessment of the manner and extent
to which he exhibited these competencies. The qualitative inputs will be used for
assessment by the reporting and reviewing officers besides their own
observations. The self-assessment in quantitative terms, however. will not be
known to the Reporting & Reviewing officers until all three complete their
assessment.
3. Reporting Relationships :
i)Reporting Officer : The executive next higher in rank and grade and not below
the level of E-1 to whom the appraise reports is known as Reporting Officer.
However, in cases where an executive has been designated as DGM or as In-
Charge, he/she may be the Reporting Officer of Executives of the same grade
who report to him/her.
In case an appraisee has worked under more than one Reporting Officer during
the period of assessment, the Reporting Officer immediately preceding the expiry
of the assessment period will assess the performance subject to the para detailed
above.
ii) Reviewing Officer : The executive to whom the reporting officer reports.
(iii) Reporting Officer(O) : Where executives of Service/Staff departments a
posted to work in other departments, the performance of the executives shall
appraised by the Line Managers also. Such a Line Manager shall be Reporting
Officer (0).The Reporting Officer(0) will make his/her individual assessment
independently. The Reporting Officer(0) should normally be not below the of E-
5 and should at least be a grade higher than that of the appraisee.
4. Development Planning :
Purpose and Philosophy :
The current thinking worldwide is that competency development should take
place immediately on experiencing the competency gap or on the decision to
build any new competency. It makes business sense to provide the training or any
other development input on the basis of the need felt.

56
The new system envisage that Training and Development needs are identified and
planned in the beginning of the performance year. The assumption here also is
that once performance plans or KPAs are identified and the competencies needed
are known, the performer himself will be in a good position to identify his own
needs. The development planning, therefore, is an effort initiated by the executive
concerned with the help of his Reporting Officer and he completes the fulfilment
of development needs with either self- initiative or with the help of support from
Management Development / Training Department.
Operational Details :
(i)Every executive is required to identify his own development needs along with
his plan for meeting the needs in the month of April itself and record the same
along with his performance plan.
(ii)The training and development needs may arise out of new task or activities the
executive concerned is expected to perform during the assessment period for
which he does not have adequate knowledge or skills or any other competencies
or some form of development interventions which will help the executive
concerned to perform better.
(iii) Based on available resources and Training Policy of the Company, the
Training and Development plans are to be prepared at the beginning of the year.
Any training and development support needed by the executive concerned from
the organization is to be identified and stated in association with the Reporting
officer in the beginning of the year in consultation with HoD.
(iv)The HoD will then decide at the beginning of the year the priority for covering
the executives in the department and communicate the same to Management
Development / Training department.
(v) Training shall be imparted to executives at the discretion of the Management.
Self-development is the primary responsibility of the Individual executive
concerned & Management can only facilitate to the extent possible.
5. Special Provisions
Minimum Period of assessment: An appraisee should work for a minimum
period of 3 months during an assessment period for the assessment to be made.
(ii)In cases of executives in E-7 grades where Functional Directors are the
Reporting Officers, CMD will discharge the function of Reviewing Officer as
well as PMC Chairman.

57
(iii) In respect of personnel staff like JSO, AE(Staff), JM(Staff), etc. attached to
the executives in the grade of E-6 and above, there will be no Reviewing Officer.
(iv)In case of executives up to the level of E-6 who are reporting directly to the
Functional Directors/CMD, there will be no Reviewing Officer.
6. On-line EPMS :
Philosophy and Purpose :
Technological innovations have revolutionized today's corporate sector. E-
governance and such other practices are the order of the day. Even small
organizations with global presence have started using IT support to improve their
management practice. RINL has decided to use the technological innovations to
its advantage. Use of IT makes performance planning easy; communications and
documentation become great aids.
Operational Details :
In the month of April, as soon as the Performance Planning and Goal Alignment
exercises are over, each executive is required to plan his performance in terms of
KPAs and record the same in the format provided in Online PMS system. All
KPAs and performance plans are to be put on-line. The online facility/system
would be accessible by all executives and department.
IT department will ensure that the necessary IT infrastructure is in place at all
locations to facilitate the same.
The following guidelines will be followed in the designing of the on-line EPMS
:
(i) Each executive can log into the EPMS with User id (Employee No) and
Password (EIS).
(ii) Each executive would be required to record his/her KPAs along with the
weightages within the stipulated time frame after which the system will shut
down & no further recording will be allowed.
(iii) The filled in formats of the concerned executives will then be available to
their respective Reporting Officers, Reporting Officer(O), Reviewing Officers
and HoD, Appraisal Cell, Training & Management Development departments.
(iv) CMD and Directors will have access to all the forms.
(V) Key Performance Areas will be available for viewing to all executives at all
times

58
during the year.
(vi) After the KPAs are finalized & entered into the format in the Online PMS
system within the stipulated time period, all concerned will have 24 x 7 access to
the Online System to maintain their records in the Performance Diary.
(vii) No one will be able to modify the forms or the entries other than those
authorized to enter the data.
(viii) Modifications, if any, can be made in the Performance Plans by the
individual concerned at any time during the year with the concurrence of the
Reporting Officer.
(ix) Training and Management Development Departments will have access to
developmental plans and will be able to download them for analysis and planning
their activities.
(X There will be a system of approval of all modifications in the KPAs and
performance plans which can 8 operated by the executive concerned & his
Reporting Officer jointly.
(xi) Ratings or assessments will be visible to the executives concerned (Executive
concerned, Reporting Officer and the Reviewing Officer) and only the portions
concerning them will be visible.
(xii) The ratings will be visible to the executive concerned after finalization of
the same by Performance Management Committee (PMC).
(xiii) Once completed and approved electronically, ratings cannot be changed in
the system.
7. Performance Review and Assessment:
Half Yearly Review and Assessment by Self, Reporting and Reviewing Officers
:
1) During the Assessment Year, Performance Diary is to be maintained online
by both the executive concerned & his Reporting Officer highlighting the
individual's achievements/ shortcomings in fulfilment of KPAs.
Rationale & Purpose :
The Performance Diary is a total provided to the executive concerned for
keeping record of key information related to performance. The individual
concerned can make entries as and when required and all entries will be kept
by date and time entered into the Online system.

59
 Each Individual executive's entry is intimated to his Reporting Officer &every
Reporting Officer's remarks l entries is intimated to the Individual executive
concerned. The Reviewing Officer is able to view the Executive's concerned
Performance Diary whenever he desires. The diary is expected to case the
effort of tracking key performance events / activities and would be used as a
support document during performance discussions.
2 Performance reviews have to be held twice a year: mid-year & annually.
Purpose & Rationale :
(i) The mid-year & final reviews are specially focused on Feedback &
Counselling and hence require the Reporting officer to have a formal feedback
session with the executives reporting to him. When used effectively, Feedback &
Counselling is a powerful tool for positively impacting performance.
(ii) Performance reviews have to be held twice a year - mid-year & annually once
by 7October for the period April 1 to September 30, and again by 15"April for
the period October l to March 31.
iii) In the middle of the performance year (i.e., in the month of October every
executive is expected to make a self review in the performance plans by indicating
the status of activities undertaken & accomplishments/ highlights of performance.
(iv) The Reporting officer needs to make comments on the same after discussion
with the executive concerned and record them in the format provided in the
Online system. The reviewing officer needs to be kept appraised by seeing the
same and passing his comments, if any, on the Reporting officer and the Executive
concerned. These can be viewed by the executive concerned, Reporting and
Reviewing Officers and HoD.
(V) The Reporting Officer should also assist the executive concerned in
identifying and developing competencies for the subsequent period and a
Performance Review Discussion (PRD) is recommended. The developmental
activities, if any, also may be recorded in the development plan column.
(vi) Assessment is to be done only at the end of the assessment year. However,
review discussions/feedback are required to be held between individual
concerned & his Reporting Officer mid year and any number of times during the
year and the same should be recorded in the system.
Final Review and Assessment On-line :
(i) The qualitative comments of the individual & Reporting Officer should be
recorded in the online format on completion of the assessment year.

60
(ii) The individual concerned, Reporting Officer and Reviewing Officer should
then rate the executive concerned independently against the weightages of
respective KPA parameters. The final assessments of each of the assessors
(executive concerned, Reporting Officer and Reviewing Officer) will be visible
to Reporting and Reviewing Officers only after all the three of them complete the
assessments.
(iii) At the end of the year there will be self-assessment by the individual
indicating both qualitatively and quantitatively his assessment of the manner and
extent to which he exhibited these competencies. The qualitative inputs will be
used for assessment by the reporting and reviewing officers besides their own
observations. The self-assessment in quantitative terms, however, will not be
known to the Reporting & Reviewing Officers until all three complete their
assessment.
(iv) The final assessment is to be made by the Performance Management
Committee after completion of the assessment period, as per the time schedule
given in the guidelines, preferably before the finalization of performance plans
for the next year.
8. Final Performance Categorization of Ratings by the Performance
Management Committee (PMC):
Purpose & Rationale :
RINL recognizes that every individual's performance is dependent on the
competencies of the officer concerned including his ability to manage and get the
support he requires, his motivation as reflected in the effort he puts in to perform
various KPAs and related activities he undertakes, and the support he receives to
perform various tasks and activities. The performance is also subject to
unpredictable and unexpected chance occurrences/ contingencies. A good
manager and leader is able to predict the unexpected to a large extent and plan for
continuous performance as organizational performance depends on each
individual performing well. Experience across the world and studies have
indicated that subjectivity is an inevitable part of Performance appraisals. No two
appraisers are comparable as the circumstances, competencies, work effort and
support received or managed for different executives may not always be
comparable. Use of numerical numbers requires standardization and
comparability. While work output delivered at lower levels by workmen are
comparable to some extent as they are measured in physical quantities, the output
of performance of supervisors, and executives become incomparable on objective

61
parameters. Thus the ratings assigned by the executives, Reporting Officer and
Reviewing Officer are subject to subjectivity and interpretations.
Recognizing the subjective nature of the appraisal, it becomes necessary to ensure
that relatively good performers are recognized and encouraged through
performance rewards, incentives etc. In this process, determination of who can be
called as good performer is subject to various dilemmas. The first problem arises
in fixing standards for all officers. Recognizing this, RINL EPMS uses a
committee system to reduce subjectivity and recognize the good performer.
Operational Details :
(i) The Appraisal Group will consist of appraisees belonging to
Sections/Departments/Directorate and functionally related to each other.
(ii) Constitution of Performance Management Committee(s) for different levels
will be notified separately every year by Appraisal Cell with the approval of
CMD.
(iii) The HOD plays a rationalization role as he always has more information of
the performance of the department as well as the performance of various sections.
Taking into consideration the team performance and the individual contribution
to the team performance and also taking into account the inputs from the
Reporting & Reviewing Officers and using the inputs provided by the executive
concerned the PMC assess & categorizes each of the officer’s performance for
the assessment year into four categories as per assessment table given below
EP = Exceptional Performer (to be given very sparingly for role models,
unquestionable, all agree, Consensus)
HP = High Performer (Exceeds all targets, agreed by all as an excellent
performer)
AP = Average Performer (Meets minimum targets / requirements)
LP = Low Performer (Not able to complete targets and needs to improve delivery
of results)
(iv) This categorization is based on various factors which may not have got fully
reflected in the forms:
a. The level of difficulty and challenge taken by the executive in the year in terms
of KPAs and activities.
b The level of accomplishments or contributions of the executive to department's
goals/performance and output.

62
C The extent to which he received support from other input providers, including
his internal suppliers and customers.
d Assessment formats and other details as recorded in the on-line EPMS.
e. There will be two categorizations of assessment/rankings done : One for
Performance and the second for Competencies, which also includes potential and
values
(v) The PMC consisting of Reporting, Reviewing Officers and HoD decides all
the four categories as mentioned above, taking into account various inputs of the
on- line system, assessments and other factors including the relative performance
of others and the favourability/ unfavorability of the conditions, internal support
and input availability, efforts made etc.
(vi) The High Level PMC will finalise Exceptional Performers from the High
Performers (say a particular percentage (%) and Low Performers by recording 2
major achievements/ shortcomings for categorizing executives into these 2
categories.
(vii) Any developmental needs arising out of the review will be pointed out and
postedon the Online PMS system for use by the executive, HRD and MTI.
(viii) In case of any difference of opinion in PMC, the decision of the PMC
Chairman will be final.
9 Conversion Table
The performance potential matrix under EPMS and its conversion to O': A, B&C
S shown below:
EP B B A O
HP B B A A
AP C B B B
LP C C B B
LP AP HP EP
Performance
For the purpose of promotion, the conversion of final assessment into credit
points will be as under:
FINAL RATING CREDIT POINTS
O 90
A 75
B 60

63
 C 40

Communication of Performance Grading to the executives (Transparency);

System of representation and disposal :
Executives and their existing reporting officers will have access to view their own
appraisal rating including all entries in the appraisal report after finalization of
ratings by the PMC. Further, the executives who bave been rated as below 'EP"
in case they so desire, can make a representation against the entries in the
Appraisal Report. The system of Appraisal Communication, Appeal and Disposal
of Appeals will be available in the online EPMS.
Development Plan for Low Performers:
In case of executives categorized as Low Performers definite development plan
has to be communicated to the individual concerned along a particular assessment
year, a With his final grade by the PMC for enhancing their performance in their
next assessment year & bringing them back into the system as better performers.
If need be, the executive concerned can be rotated to other departments/units for
his/her improvement.
11 Assessing assessors for higher accountability
Purpose and rationale :
RINL recognizes that our Indian Culture is that of relationship building and
people value Culture by nature. In such a culture. it is difficult to give negative
feedback face to face and it has been a normal practice to communicate only
positive feedback to employees.
RINL also recognizes that in the past, intention to give high ratings is used as a
motivating mechanism and that is how a lot of subjectivity creeps in. Most often,
a Reporting or a Reviewing Officer may feel thata particular executive concerned
that he has done a great job to buy his motivation for the future.
Raters vary in their philosophy and approach. Some are strict and more objective
and may swing to one extreme, while a few others may be lenient and generous.
However to make the system become less subjective and to ensure that all
executives use similar standards, an attempt is being made to develop all assessors
to be more objective and make proper judgment of the performance of their
juniors. This is a long term goal.

64
A beginning is being made from the current EPMS to introduce a system of
assessing the assessors and also to audit the implementation of the PMS. This will
be done through the following:
i) Assessing the Assessors by studying their rating behaviour and giving them
feedback about their rating behaviour.
(ii) Using Audit Committees periodically to review the implementation of the
EPMS.
operational details :
A) Rating behavior of Assessors:
(i) At the end of the assessment year, each rater's (Reporting as well as Reviewing
Officers) assessment will be statistically analysed to determine his rating
behavior and feedback will be given to him.
(ii) Each executive is expected to fill a form giving details of his experience With
the assessment process and also give his assessment of the rating behavior of the
Reporting Officer. A simple five to six item rating scale will be used and the
ratings communicated to each Reporting Officer.
(iii) Such communications may take the following forms :
"You have rated during the previous year ... Officers as a Reporting Officer and
... Officers as Reviewing Officer. An analysis of your ratings has revealed that the
ratings you have given range from ... to ... The average ratings of the Company
range from ... to ... Your departmental average ranges from ... to ... Your
departmental performance has been rated as ...
Considering these factors your rating behavior indicates that you are a Lenient
Rater/ Conservative Rater/Discriminating Rater/ Non- Discriminating Rater, etc."
This system needs to be developed and perfected over a period of time.
(i) A new Credibility Quotient to be developed for cach assessor on the basis
of their rating behavior and communicated to them to improve their rating
behavior.

65
B) EPMS Audit Committee :
RINL will have an EPMS Audit Committee to review and audit the
implementation of the EPMS. The EPMS Audit Committee will meet during the
stipulated time period.
(ii) The Audit Committee will look into the individual grievances appeals, if any,
received during the year at the end of the assessment year, look into these cases,
study the ratings, interview some of the candidates as they deem fit and make
suggestions to improve the EPMS and its implementation.
(iii) Assessors from departments with average performance but giving high
ratings for their juniors to be questioned by PMS Audit Committee.
12 Leadership Development and Competency Building through 360 Degrees
Feedback and Assessment and Development Centers:
Rationale : In the recent year, a lot of development has taken place in the field
of performance management. Two such developments include the 360 Degree
Feedback and the Assessment and Development Centers.
The 360 Degree Feedback is a multi-rater feedback in which the candidate is
assessed at the end of the year by his juniors, seniors, internal customers, external
customers, wherever applicable. These along with Self-assessment by the
executive concerned gives insights into the impact made by the Executive on his
juniors, seniors, and internal customers and helps the Executive Concerned to
improve his performance in subsequent period. Particularly in cultures where
employees don't give objective feedback to each other due to a desire to maintain
good relations, it has been found to be useful. RINL has decided to use this system
selectively for the development of its Senior level executives. The 360 Degrees
Feedback is being tried out on an experimental basis and will be used as a
development tool.
Assessment and Development Center is a specially created center in which a
series of exercises are used to assess the competencies of a given individual for
jobs he/she has usually not performed so far. Assessment centers have become a
useful technique to assess the competencies needed by officers for higher level
jobs and use the information to develop individuals to perform higher level jobs
or less.
An assessment center uses a variety of testing techniques designed to allow
candidates to demonstrate, under standardized conditions, the skills and abilities
that are most essential for success in a given job.

66
Assessment centers consist of standardized evaluation of behavior based on
multiple inputs. Features of an assessment center include measurement of
techniques selected based on job analysis, simulation exercises, assessors
behavioral observations (classified into meaningful and relevant categories), and
use of multiple assessors for each candídate.
In an Assessment center the candidate is assessed by external assessors on a set
of predetermined competencies using multiple methods. Thus the data generated
are Supposed to be more objective and have been found to have a reasonable
degree of predictive validity. Due to their predictive validity, they are being used
in India for development purposes.
Operational details
(1) RINL proposes to use 360 Degrees Feedback (360 DF) and Assessment and
Development Centers (ADCs) for developing future leaders and to prepare
managers for their future roles.
(ii)Data from 360 DF will not to be used for promotion decisions but the
improvements and accomplishments shown by an executive after 360 Degree
Feedback and assessment by ADCs to be indicators of leadership čompetencies.
iii) In subsequent years, Competencies, Potential and Values to be assessed on the
basis of ADCs or other tools and incorporated into the PMS.
13 Team appraisals :
Purpose and rationale:
There are a lot of inter dependencies among various work processes in RINL as
it largely works with integrated steel plant technology. In an integrated steel plant
as work inter dependencies are high, team work becomes very critical.
Recognizing this, the EPMS system introduces team appraisal.
Team appraisal will consist of the following :
Identification of Team KPAS and contributions to the Unit or departmental
performance in the beginning of the year and in line with APP.
(ii) Self-assessment at the end of the year by the team.
(iii)Assessment by the Departmental committee or plant level or unit level
committee to determine A class, B class and C class performers among various
teams.

67
(iv) Team rewards in kind like celebrations, certificates and other forms of
recognition.
Team appraisals to be introduced and teams identified and KPAs outlined as a
part of goal alignment cascade exercise in the beginning of the year. Details of
the team appraisals will be evolved after the first year of implementation of the
EPMS.
14 Performance linked pay and other rewards :
Performance Linked Pay. Rewards and Incentives have become the order of the
day. These are necessary and are good ways of keeping up employee motivation,
morale, reducing absenteeism and increasing retention as well as contributing to
their quality of life. In the past, employees used to be given incentives largely
through promotions and sometimes depending on their experience and period of
stay with the company, loyałty used to be rewarded through career progression
and status linked incentives.
Developments in industry have given rise to a variety of incentives and rewards.
RINL as a PSU would like to use as many of these experiences as possible but it
also has a philosophy of offering a career at RINL as the main incentive for
performance. RINL is for those who have a long commitment to make and build
their career. Át the same time as RINL cannot keep creating new positions on
continuous basis, the avenue of granting promotions as an incentive becomes
limited. Hence, new systems need to be thought of and therefore, the move is to
start a performance linked pay on select basis. This is a one time lump sum
amount given to individuals on the basis of their outstanding performance during
a particular assessment year.
In addition, RINL also plans to introduce the following forms of Non Financial
rewards :
1 Achievement Rewards consisting of :
a) Wider Job design,
2. Recognition consisting of :
a) Praise,
b)Long service awards
c) Work related trips abroad
d) Chairman's Dinner
e) Director's Dinner etc.
68
3. Influence Enhancing recognitions and awards such as :
a) Task Forces,
b) Committees,
c) Achiever's Forum etc.
4. Responsibility enhancing rewards and recognition such as :
a) Personal growth
b) Additional responsibilities
c) Promotions etc.
5. Team rewards :
a) Team celebrations
b) Picnics and other forms
RINL intends to introduce performance linked pay and recognition systems.
RINL believes in the philosophy that good performance should be recognized and
rewarded. The quantum of rewards and the form of rewards depends upon many
factors. The recognition and rewards may take many forms. Details of the
performance linked pay and other rewards will be evolved after first year of the
implementation of the EPMS.
4. Role of Appraisal Cell
Appraisal Cell will be the nodal agency for implementation of EPMS. IT
Department will extend necessary help for development and deployment of the
online EPMS to all executives.
5. Tenure
i) The Company reserves the right to withdraw the system at any time without
notice.
(ii) CMD, RINL is authorized to approve the details under the policy and the
appraisal formats for implementation of the same. He is also authorized to amend
or modify the system, rules and guidelines, as and when required.
For effective implementation of the Executive Performance Management System
in RINL, the system shall be reviewed after the first, third and fifth year of I
implementation and every five years hence to bring in systemic improvements.

69
 CHAPTER -5
DATA ANALYSIS

70
1. How many Years have been been working with this organization?

Table 1
S. No Opinion Respondents Percentage
1 1-3 Years 0 0
2 5-8 Years 2 4
3 8-15 years 7 14
4 More than 15 years 41 82
Total 50 100

Graphical Representation:

Respondents
45
40
35
30
25
20
15
10
5
0
1-3 years 5-8 years 8-15 Years More than 15
Years
Respondents

Interpretation:
From the above analysis I have found that 82% of the respondents said they are
working more than 15 years and 14% of the respondents said 8-15 years and 4%
of the respondents said that 5-8 years are working Visakhapatnam steel Plant.

71
2. Are you happy being associated with Visakhapatnam Steel Plant?

Table 2
S. No Opinion Respondents Percentage
1 Yes 43 86
2 No 0 0
3 To some Extent 7 14
4 None 0 0
Total 50 100

Graphical Representation:
50

45

40

35

30

25

20

15

10

0
YES No To Some Extent None

Respondent

Interpretation:
From the above analysis I have found that 84% of the respondents said yes about
their happiness being associated with Visakhapatnam steel Plant and 14% of the
respondents opinion is to some Extent.

72
3. what is your opinion on present performance appraisal system in RINL?

Table 3
S. No Opinion Respondents Percentage
1 Excellent 0 0
2 Good 32 68%
3 Average 18 32%
4 Poor 0 0
Total 50 100

Graphical Representation:

Respondents
35

30

25

20

15

10

0
Excellent Good Average Poor
Respondents

Interpretation:
From the above analysis I have found that 68% of the respondents said Good
about the present performance appraisal System in Visakhapatnam steel Plant
and 18% of the respondents opinion is Average.

73
4. In your Opinion, does the performance appraisal system give a proper
assessment of your contribution to the organization.

Table 4
S. No Opinion Respondents Percentage
1 YES 0 0
2 NO 38 76%
3 May be 12 24%
Total 50 100

Graphical Representation:

Respondents
60

50

40

30

20

10

YES NO May be
Respondents

Interpretation:
From the above analysis I have found that 38 the respondents said No about the
performance appraisal System are not giving proper assessment of our
contribution to the organization and 12 of the respondents opinion is Maybe .

74
5. Do you agree that performance appraisal system in VSP helps in assessing
Competency?

Table 5

S. No Opinion Respondents Percentage

1 Disagree 0 0
2 Netural 24 48.5%
3 Agree 26 51.5%
Total 50 100

Graphical Representation:

Respondents
30

25

20

15

10

0
Disagree Netural Agree

Respondents

Interpretation:
From the above analysis I have found that 24 the respondents said Netural about
the performance appraisal System in VSP helps in assessing and 26 of the
respondents are Agreed.

75
6. Do you agree that the existing performance appraisal allows you to identify
new challenges of job and prepares for further growth?

Table 6

S. No Opinion Respondents Percentage

1 Disagree 0 0
2 Netural 34 71%
3 Agree 16 29%
Total 50 100

Graphical Representation:
40

35

30

25

20

15

10

0
Disagree Netural Agree
Respondents

Interpretation:
From the above analysis I have found that 34 the respondents said Netural about
the performance appraisal System in VSP helps in assessing and 29% of the
respondents are Agreed.

76
7. Is your Performance being reviewed as per the timeline Prescribed?

Table 7

S. No Opinion Respondents Percentage

1 YES 33 69.5
2 NO 4 8.2
3 May be 13 22.3
Total 50 100

Graphical Representation:
35

30

25

20

15

10

0
YES NO Maybe
Respondents

Interpretation:
From the above analysis I have found that 69.5%the respondents said YES about
the performance being reviewed as per time line prescribed in RINL and 4.2%
of the respondents are said No and 22.3% of the respondents are said that may
be.

77
8. Do you agree that performance appraisal helps in motivation of the
employees?

Table 8

S. No Opinion Respondents Percentage

1 Disagree 0 0
2 Netural 34 71%
3 Agree 16 29%
Total 50 100

Graphical Representation:
40

35

30

25

20

15

10

0
Disagree Netural Agree
Respondents

Interpretation:
From the above analysis I have found that 34 the respondents said Netural about
the performance appraisal System helps in motivating employees in RINL and
29% of the respondents are Agreed.

78
9. Does Visakhapatnam Steel plant go by merit or seniority with respect to
promotions?

Table 9

S. No Opinion Respondents Percentage

1 Qualification 2 4
2 By Seniority 8 16
3 Both 25 50
4 Performance 15 30
Total 50 100

Graphical Representation:
30

25

20

15

10

0
Qualification By seniority Both Performance
Respondent

Interpretation:
From the above analysis I have found that 50 %the respondents said both
qualification and seniority are considered in promotions in RINL and 30 % of
the respondents are said performance are considered and 16 % of the
respondents are said Seniority and 2% qualifications are considered.

79
10. Do you think Feedback received from your Reporting officer is helping you
in performing your duty?

Table 10

S. No Opinion Respondents Percentage

1 Very helpful 40 80
2 Helpful 10 20
3 Not helpful 0 0
Total 50 100

Graphical Representation:
45

40

35

30

25

20

15

10

0
Very helpful Helpul Not Helpful
Respondents

Interpretation:
From the above analysis about the feedback received from your Reporting officer
is helping you in performing your duty the 80% respondents are said it is very
helpful and 20% of the respondents are said helpful.

80
 CHAPTER -6
FINDINGS, SUGGESTION

81
 FINDINGS
❖ A good number of employees agree that Executive PAS helps them is

assessing the competency. Regarding effective working environment half of

the employees are having a clear view that effective Executive PAS is having

a good impact where as the rest of them do not agree to it.

❖ Executive PAS of the VSP is found to be good whereas few of them felt that

it is biased. The drive towards maintaining quality is very good.

❖ Most of the employees feel that the main cause for their performance is not

the lack of skills but there is some other reason which directly is an impact on

the performance. More than half of the employees said that top management

is advisable to conduct performance appraisal system.

❖ More number of employees are able to find there pros and corns in the area of

6ob performance. They are ready to participate in T and D programmes in the

area where they are not perfect.

❖ More number of employees feels that promotion and reward system in this

organization is purely based on PAS.

❖ The employees are not in a clear picture about the PAS Equal number of the

employees are supporting and are against the existing of the PAS. Maximum

numbers of the employees are advising to conduct PAS periodically besides

awareness programmes.

82
 SUGGESTION
Samples of 50 respondents, selected at random from Junior Officer to higher level
management from different departments were sought for their opinions on the
existing appraisal system.

A survey was conducted (by way of questionnaire and discussion) to find out
whether the employees are satisfied with the existing system and their opinions
on related areas.

SUGGESTIONS FOR A BETTER PEREORMANCE MANAGEMENT

SYSTEM:
❖ For improvement of the performer the appraisal can be conducted every

month or at least quarterly so that better results can be achieved.

❖ For genuine assessment of performance of employees and for unbiased

results rules should be strictly followed.

❖ For better results, Appraisal system should be connected to incentive

scheme.

❖ Ratings should also be done by peers and colleagues for better assessment.

❖ Performance appraisal system should be more objective and transparent to

avoid problems and dissatisfaction of employees with their ratings.

❖ As the appraisal is directly linked to promotion or career progression of an

employee, there should be transparency in discussing the appraisal report.

83
 CONCLUSION
The momentous decision to establish a Steel Plant at Visakhapatnam was

announced in the Parliament in 1970 by the then Prime Minister, Smt. Indira

Gandhi. The foundation stone for this massive project was laid in 1971. The

Detailed Project Report was prepared in 1977. However. it was only in 1979 with

the Government of erstwhile Soviet Union offering techno-economic

cooperation, the cabinet approved the proposal for setting up of an integrated

Steel Plant at Visakhapatnam.

Performance Appraisal system is very important to assess training needs to

effect promotions, and to give pay increase. There are two methods in

performance Appraisal system those are modern and tradition methods.

Appraisal of performance proceeds in a set of pattern, the steps involved are

defining appraisal ob6ectives, establishing job expectations, designing the

appraisal programmes, conduction performance interview, and using appraisal

data for different HR activities.

84
 CHAPTER -7
BIBLIOGHRAPHY

85
 BIBLIOGHRAPHY

BOOKS:

Name of the Book Author

Human Resource Management K Aswathappa

Performance Management Soumendra narain bagchi

Organizational Behaviour Mathias J. seventh

Management by Objectives Dr. Wazir.

Websites:
www.steelindustry.com
www.steelplant.com
www.rinl.com

86
 Questionnarie on Performance Appraisal System in RINL
Respect sir/ Madam,
I am K. Siva prasad a student of Acharya Nagarjuna
University Guntur, carrying out a project on “ Performance Appraisal
System” at VSP. As a part of my project I am required to conduct a
survey to obtain feedback from executive employees on performance
appraisal system in VSP. Towards this I request your valuable feedback
by filling out this form given below.
Employee details:
Name : Age :
Sex : Experience :
Designation :
Below statements have been framed basing on a rating scale using the code given
below each statement, please tick your choice.
11.How many years have you been working with this organization?
a) 1year
b) More Than 1 and less than 5
c) 5-8 years
d) 8-15 years

12.Are you happy being associated with Visakhapatnam Steel Plant?

a) Yes
b) No
c) To some Extent
d) None.
13.what is your opinion on present performance appraisal system in RINL?
a) Excellent
b) Good
c) Average
d) Poor

87
14.In your opinion, does the performance appraisal system give a proper
assessment of your contribution to the organization?
a) YES
b) NO
c) may be

15.Do you agree that performance appraisal system in VSP helps in assessing
competency?
a) Disagree
b) Netural
c) Agree
16.Do you agree that the existing performance appraisal allows you to identify
new challenges of job and prepares for further growth?
a) Disagree
b) Netural
c) Agree

17.Are you aware about the MOU of current year of the organization?
a) Not at all aware
b) slightly aware
c) Extremely aware

18.Do you think your KPAS are aligned with the MOU of the organization
every year?
a) Yes
b) No
c) Maybe

19.Is your performance being reviewed as per the timeline prescribed?

a) Yes
b) No
c) Maybe

20.Do you agree that performance appraisal helps in motivation of the

employees?
a) Disagree
b) Netural

88
 c) Agree

21. Does Visakhapatnam Steel plant go by merit or Seniority with respect to

promotions?
a) Qualification
b) By seniority
c) Both
d) Performance

22.Do you think Feedback received from your Reporting Officer is helping you
in performing your duty?
a) very helpful
b) helpful
c) Not helpful

23.In RINL the performance appraisal system are conducted by fairness &
Transparency
a) Disagree
b) Netural
c) Agree
24.Can executives suggest improvements or changes to the appraisal system?
a) Yes
b) No
c) Maybe

25.Do you expect any salary increment after Appraisal?

a) Yes
b) No
c) Maybe

26.Do you think your leadership and interpersonal skills are developed during
the Performance Management System?
a) Yes
b) No
c) May be

27. How is the Performance appraisal rating given?

89
 a) Monthly basis
b) Quarterly
c) Half year
d) Annually

28.Do you think that manager can get the work done by the employer without
performance appraisal System?
a) Agree
b) Disagree
c) Cannot say

29.Are you facing any following problem during appraisal?

Yes No
a) Analysis of skill ( ) ( )
b) Usage of logics ( ) ( )
c) Self-opinion description ( ) ( )
d) Participation in decision making ( ) ( )
e) Unable to reveal self description ( ) ( )

30.Is there anyone or anything that is obstructing your performance in this

company?
a) Yes
b) No
c) May be

90