Introduction of C.C.

C.C.L is a subsidiary company of coal India limited under ministry of coal and mines govt. of
India

C.C.L is one of the 7 coal production subsidiaries of coal india limited under ministry of coal
and mines. Company is governed by a board of directors consisting of 5 full time directors
and 6 part time directors. Full time directors are responsible for specific functions of
operation, project & planning, finance and personnel.

India is third largest country in the production of coal.

C.C.L means Central Coalfields Limited.

1
 Coal India Limited – A Profile

Coal India limited is the third largest coal producing company in the world. It was formed on 21 st
October, 1975 as a Holding Company under the ministry of coal, Govt. of India, for the entire
coal industry in the country barring the coal mines in Andhra Pradesh and captive mines of
TISCO, IISCO and DVC. Its registered office is located at 10, Netaji Subhash Road, Kolkata. It
was declared Public Sector Undertaking in November, 1975 for reorganizing the nationalized
coal mines and ensuring integrated development of coal, the prime source of energy.

Coal India presently contributes 90% of the total coal production in India. It operates through
NINE subsidiaries: EIGHT producing companies: Eastern Coalfield Limited (ECL), Sanctoria,
WB; Bharat Coking Coal Limited (BCCL); Central Coalfield Limited (CCL), Ranchi Jharkhand;
Northern Coalfield Limited (NCL), Singrauli, MP; Western Coalfields Limited (WCL), Nagpur,
Maharashtra; Mahanadi Coalfields Limited (MCL), Sambalpur, Orissa; The mines of North
Eastern Coalfields Limited (NECL), Assam & Meghalaya; South Eastern Coalfield Limited
(SECL), Bilaspur; and Coal Mine Planning & Development at Institute Limited (CMPDI).

And Dankuni Coal Companies (DCC) in West Bengal operates directly under coal India.

Coal India currently operates 510 mines (tentatively) and 15 washeries spread over nine states to
produce and beneficiate coal for meeting the demand of the consumers all over the country. The
ranges of products are: Raw coal (coking and non-coking), Washed coal, Middlings, soft coke &
Hard coke, coal, tar, coal gas, coal chemicals etc.

2
 Background History

Warren Hastings initiates commercial coal mining at Raniganj (West

1774
Bengal)

1815-1820 First Shaft Mine opened at Ranigunj

1835 Carr, Tagore & Company takes over the Ranigunj Coal Mines

Bengal Coal Company takes over Ranigunj Coal Mines and others; is first
1843
Joint Stock Coal Company in India.

Minimal development; River transportation used to transport coal to

Upto 1900
Calcutta;railway lines at Calcutta leads to expansion of Coal Production

Early
Capacity at 6 million tonnes per annum
1900s

1955-56 Focus on Coal Industry; capacity up to 38.4 Million tonnes.

National Coal Development Corporation (NCDC) formed to explore and

1956
expand coal mining in Public Sector

Coking Coal Industry Nationalised, Bharat Coking Coal Limited formed to

1972
manage operations of all Coking Coal mines in Jharia Coalfield.

Non-coking coal nationalised; Coal Mine Authority Limited set up to

1973
manage these mines; NCDC operations bought under the ambit of CMAL.

Coal India Limited formed as holding Company with 5 subsidiaries viz.

Bharat Coking Coal Limited (BCCL), Central Coalfields Limited (CCL),
1975
Western Coalfields Limited (WCL), Eastern Coalfields Limited (ECL) and
Central Mine Planning and Design Institute Limited (CMPDIL).

Northern Coalfields Limited (NCL) and South Eastern Coalfields Limited

1985
(SECL) carved out of CCL and WCL

Mahanadi Coalfields Limited (MCL) formed out of SECL to manage the

1992
Talcher and IB Valley Coalfields in Orissa.

2000 De-regulation of Coal pricing and distribution of coal.

Coal India & four of its nos Subsidiaries,viz,NCL,SECL,MCL,WCL was

2007
accorded coveted "Mini Ratna" Status

3
4
Company Profile

Date of Coal India Limited was formed as holding

incorporation Company with 5 subsidiaries on 21.10.1975

Corporate Status : The company is incorporated under the

Companies Act, 1956 and is wholly owned by
the Government of India (GOI).

Business : Engaged in the mining of coal, coal based

products and mining consultancy.

Wholy Owned Eastern Coalfields Ltd.

Subsidiaries Bharat Coking Coal Ltd.
Central Coalfields Ltd.
Northern Coalfields Ltd.
Western Coalfields Ltd.
South Eastern Coalfields Ltd.
Mahanadi Coalfields Ltd. and
Central Mine Planning & Design Institute Ltd.

North Eastern Coalfields is directly under Coal

India Ltd.

Registered Office : Coal Bhavan,

10 Netaji Subhas Road,
Kolkata - 700 001
West Bengal, India.

5
INTERNAL ASPECTS

DELEGATION OF POWER

CIL exercise the power delegated under DPE guidelines to the MOU signing companies and also
powers delegated by the ministry of Coal to Coal India Ltd. from time to time.

Obligation of the Government:

In order to enable CIL to achieve its objectives and the level of performance set in the MOU, the
Government on its part undertakes to:-

 Assist CIL in setting adequate supply of railway wagons.

 Assist CIL in acquisition of land and getting clearance for forest land by taking up the
matter with MOEF and the respective state government so that land acquired under the
LA/CBA Act is handed over and the forest clearance given under time bound
programmed.

 Assist CIL in arranging and getting necessary approval for internal credit.

 Assist CIL in recovery of outstanding coal sale due.

 Assist CIL in restructuring of ECL and BCCL in view of report submitted by consultant.

MONITORING

CIL has to submit a quarterly report of performance for each of the performance indicators. The
quarterly target in respect of indicators is same as reflected in the annual action plan 2001-02 of
the Ministry of coal.

The Performance evaluation is based on its annual performance.

PERFORMANCE RATING:-
6
The performance rating is done in the following way:-

5% more than the target - Excellent

• Equal to the target - Very Good

• 5% less than the target - Good

• 10% less than the target - Fair

• 15% less than the target - Poor

CIL Board has followings members:-

• Chairman CIL

• Functional Director

• Additional Secretary, MCC

• Joint Secretary & financial advisor , MOC

• Representative from railway board

• Two CMD’s of subsidiary company.

SUBSIDIARY COMPANIES

COMPANY HEADQUARTERS YEAR OF CORPORATION

ECL Sanctoria 1975
BCCL Dhanbad 1973
CCL Ranchi 1975
WCL Nagpur 1975
NCL Singrauli 1986
SECL Bilaspur 1986
MCL Sambhalpur 1992
NEC Meghalaya 1975
CMPDI Ranchi 1975

Coal India and its subsidiaries

7
HIGHLIGHTS OF CCL

8
Central Coalfield Limited has been on the coal map the country as a public sector on October,
1956, under different names. In the beginning it was known as National Coal Development
Corporation, then Central Division of Coal mines Authority , and finally under its present
nomenclatures at Ranchi, Jharkhand.

The Central Coalfield Limited is one of the subsidiaries of coal India Limited registered under
the Company’s Act 1956 in the year 1975. The mining and extraction of coal is entrusted to a
public sector organization Coal India Limited. The Company is divided into eight subsidiaries
and Central Coalfield Limited is one of them.

The company presently known as CCL has a history of more than three decades. Pursuant to the
Industrial Policy Resolution of 1956, a company was formed by the names of M/S Hindustan
Collieries Private Limited, on 5 September, 1956. The name was changed to the National Coal
Development Corporation. The NCDC was formed on 01.10.1956 with 11 state railway
collieries in Orissa and Madhya Pradesh.

Like other industries and organization, the affair of CCL too is not settled by its owner (Govt. of
India). Rather the professional team of management called Board of Directors (BOD) is
appointed by the Govt. of India to manage the affair of CCL.

It consists of chairman – cum-Managing Director, four functional Directors in charge of

operations, personnel, finance and projects & planning. Besides part-time Directors as may be
appointed by the Govt. from time to time. At present CCL have 67 collieries and 7 washeries
under revenue production. Some of the state collieries are very old, at least one of which that in
Giridih has crossed century in the year 1961. It also has seven coal washeries , a coal oven plant ,
besides workshop and handling plants spread over in Hazaribagh , Palamau, Ranchi, Bokaro ,
Giridih, and Chatra district.

CCL is the major source of medium coking coal in India. CCL’s other important activities are
beneficiation of medium coking coal for steel plants through its chain of coal washeries and
manufacture of soft coke for domestic kitchen. Most of the production (88%) comes from
surface mines. The productivity of underground mines and many of the surface mines is low, but
because of high priced of coking coal, the company has been making marginal profit and losses
with the recent deregulation of coking coal price the profitability of the company is expected to
improve. The command area of CCL companies 10 coalfields namely Giridih, East Bokaro, West
9
Bokaro, Ramgarh-kaitha, North Karanpura, South Karanpura, Auranga, Hutar, Daltongang and
Giridih/ Jayanti. Chairman-cum-Managing Directors is the full time executive of the company.
The collieries and washeries have been grouped into 15 areas each headed by chief General
Manager/General Manager. The coal projects are headed by project officer

MAJOR COLLIERIES OF CCL

1. BARKASAYAL

2. ARGADA

3. NORTH KARANPUARA

4. RAJHARA

5. PIPARWAR

6. RAJRAPPA

7. KUJU

8. HAZARIBAG

9. BOKARO & KARGALI

10. DHORI

11. KATHARA

12. KATHARA

COAL WASHERIES OF CCL

Coking Coal Washeries

Location
10
 1. Rajrappa

2. Kedla

3. Sawang

4. Kargali

Non Coking Coal Washeries

Location

1. Piparwar

2. Gidi

3. kathara

Coal-Type and Constitutes

Vegetable matter subjected to diverse geological processes and pressures give birth to the
sedimentary rock called coal.

Chemically coal is made of carbon, hydrogen, oxygen,nitrogen,and some other impurities.

The main constitutes of coal are:-

Carboneous Non Carboneous

Vitarin Ash

Clarin Moisture

Volatile matter

Fixed Carbon

Broadly speaking , coal is of four types:

1.Anthracite

2.Bituminous

3.Lignite

4.Peat

CCL is mainly concerned with bituminous coal. These are mainly of two types:-

1. Coking coal

2. Non-coking coal
11
Coking coal is that variety of coal which has better coking properties and which can be converted
into hard coke suitable for iron and steel industry and metallurgical purpose. Coking coal is of
three types:-

1. Prime coking coal

2. Medium coking coal

3. Semi coking coal

GRADES OF COAL

Coal is divided into following grades according to uhv (useful heat value)

COKING NON COKING

St-1steel grades 1 GRADES A (>6200kcal/kg)

St-2steel grades 2 GRADES B (>5600kcal/kg)

W-1 washeries grades 1 GRADES C (>4940kcal/kg)

W-2 washeries grades 2 GRADES D (>4200kcal/kg)

W-3 washeries grades 3 GRADES E (>3360kcal/kg)

W-4 washeries grades 4 GRADES F (>2400kca/kg)

GRADES G (>1300kcal/kg)

MISSION AND VISION OF CCL

VISION

12
To become a World class, innovate, competitive & profitable Coal Mining Operation to achieve
customer satisfaction as top priority, Committed to create eco-friendly mining.

MISSION

The mission of CCL is to produce and market the planned quantity of coal and coal products
efficiently and economically with due regard to safety, conservation and quality.

The main thrust of CCL in the present context is to orient its operations towards market
requirements maintaining at the same time financial viability to meet the resource needs.

Product Profile

Gradewise availability of Raw Coal

Available Grade of Coal
Non-coking Coking
Grade U.H.V. (K Cal/Kg.)

Non-Coking Coking

13
Grade U.H.V. (K Cal/Kg.) Grade % Ash

A Exceed 6200 W-I Between 18-21

B Between 5600-6200 W-II Between 21-24

C Between 4940-5600 W-III Between 24-28

D Between 4200-4940 W-IV Between 28-35

E Between 3360-4200

F Between 2400-3360

G Between 1300-2400

METHOD OF EXTRACTION OF COAL

Coal is obtained from the earth’s surface called mines.

Mines are of two types.

1.OPENCAST MINES

In this type of mine with the help of technology attempt is made to reach the level of coal seam
by removing the overburden (i.e. after removing everything lying above the coal seam). For this
heavy machines like HEMM (heavy Earth Moving Machine) are used the manpower is reduced.

2. UNDERGROUND MINES

In this type of mine technology attempts to reach the coal seam not by removing the overburden
but through a pit. These mines are in those areas where coal seam is deep. The overburden
remains intact the workers dig the ground.

The workers are sent to the level of coal seam either through shaft (an inclination) or through lift,
i.e. DOLI. There is optimum utilization of manpower in these mines.

14
In this type of mines there is high risk of accidents due to the fall of roofs and sides. In order to
avoid these accidents thrust is given to provide support of green roof with steel supports like
steel cogs, pit props, roof, Bolts, W-straps, etc

HUMAN RESOURCE MANAGEMENT IN CCL

Human Resource is treated as a major. For improvement of production and productivity in CCL.
For achieving the goals, special thrust is given by motivating & providing opportunity to every
member of the organization to discover, unlock & develop their talent potential & wider the
horizon through continuous learning.

One of the thrust areas of the company is to impart need basic retraining of underutilized/surplus
manpower and employees appointed under SFVRS (Special Female VRS). Newly recruitment
and out sees and inductees under NCWA scheme are developed as a work force to compete in
the statutory examinations conducted by DGMS, Electricity Board etc.

During 1999-2000,

Several courses were conducted covering topics like Leadership Development, TQM-ISO 9000,
Techno Managerial topics, Team Building, Work Ethnics, New Industrial policy, Contract
Management, Quality Assurance, Statutory Cources, Advance Technology, Decision Making,
Computer Education and Applications, Management Development programme, Safety
Management etc.

Following are the training Institutes of CCL:-

15
1. Management Training centre, Ranchi.

2. Bhurkunda training Institute, Bhurkunda

3. Central Excavation Training Institute, Barkakana.

4. Security Training Institutes, Gandhi nagar, Ranchi.

5. Institute of Occupational Medicine and health centre, Gandhinagar, Ranchi.

Computer Appreciation Program (CAP) is being regularly conducted at MTC. Training

programmed for pit safety committee members and workman inspector is also being regularly
conducted

MAIN OBJECTIVE OF CENTRAL COALFIELDS LIMITED

1. To carry on business of coal mining

1.1 Acquisition of coal mining.

1.2 To produce or otherwise engage generally in the production, sale and disposal of

and its by-product.

1.3 Mining coal, manufacturing coke and other business.

1.4 Manufacturing, trading and other business.

2. Recognition and reconstruction of coal mines taken over by government.

3. Policy formulation and advisory function.

4. To finance replacement expenditure.

5. To develop technical know-how.

6. Exploration and prospecting.

7. To manufacture and sell coal as a patent fuel.

8. To carry on mining and carrying coal other by products incidental there to.

9. To acts as trader of coal and coke and other by-products directly or through agents.

16
10. To manufacture coke and other by-products of coal.

11. To act as colliery and mines proprietors coke manufacture in all their respective branches.

The main project objective are to support the market-oriented reform India is undertaking in the

sector and specially to provide financial and technical support of coal India’s effort to make itself

commercially viable and self-sustaining under pinning India’s broad drive to achieve economic

growth.

The project also aim to increase domestic supplies of coal by planning investment in the most

profitable 24 opencast mines of coal India for the power sector and other industries until imports

and production from private investments can fill the merging supply gap.

ROLE OF CENTRAL COALFIELDS LIMITED

1. To get implemented the policy and program laid down by the government of India. CIL
ensures working in accordance with the guidelines and directions issued by them from time to
time.

2. To keep them informed of the program with regard to implementation of their policies and
progress in accordance with the guideline and direction issued by them.

3. To plan and carryout all operations in such a manner that there is no risk of loss, injury or
damage to the health of workman.

4. To adopt techniques and methods working such that loss of coal reserves by ways similar to
other reasons and blockage of reserved in barriers etc. in the east.

5. To draw annual plans for production, preparation and dispatch of coal connect activities
keeping in priority wise demand.

6. To maintain store of equipment, spares and other material to that necessary items are available
in time without unduly blocking capital for propose.
17
7. To draw out inputs of various equipments that is plant and machinery, stores & spares, land
and building etc.

8. To install maintain and operate plant and machinery property so that they are available for the
working to maximum extend and to utilize them in the best possible manner.

9. To keep down cost in all possible ways so as to get maximum profit.

10. To arrange for necessary fund and utilize that in the most advantageous manner.

11.To take care of housing, water supply, recreational, education, medical & other facilities
for the social security of employees to the extend it is reasonable & practicable.

12. To maintain harmonious industrial relation.

13. To arrange for security of company’s properties collective security of employees & their
properties maintenance of law & order in coordination with Government machinery.

14. To construct new project to meet the future need & to ensure timely communication &
completion of jobs.

15. To promote marketing of products and to realize sales proceeds promptly.

16. To carry out studies with the view to asses to normal standard of performance in different
spheres and to develop & implement incentives to increase efficiency.

18
 PRESENT MANAGEMENT AT CCL

The Chairman cum Managing Director is the whole time chief executive of the company.

The chief vigilance officer is responsible to see that the work is done as per the set rules producer
and guidelines and being the guilty to book secretary to board is responsible for keeping the
meeting agenda.

The board of directors consists of functioned directors and nominees from the state and central
government. The functional Directors are personnel operations etc.

All functional Directors are indirectly related to the areas General Managers. Each area General
Manager is fully responsible for the performance of the area having separate project. Officer for
each project is supposed to achieve the projected target fixed by the company as a whole. Each
project has a colliery manager to individually supervise all types of activities like transport,
production sales realization.

The functional Directors has separate departmental heads namely G.M. sales and marketing,
quality control, finance personnel administration. All have separate work or duties but are
indirectly related to each other.

19
BOARD OF DIRECTORS

Mr. R.K. Saha Chairman-cum-managing Director (CMD)

DIRECTORS

Mr. T.K.NAG Directors (Tech/Oprn.)

Mr. T.K. Chand Directors (personnel)

Company Secretary

Shri C.V.N. Gangaram

Statutory Auditors

Anand Rungta & Co.

Chartered Accountants

20
 ORGANIZATION CHART OF C.C.L.

CMD

DIRECTOR DIRECTOR DIRECTOR DIRECTOR

FINANCE PERSONNEL TECHNICAL TECH. (PROJECT
OPERATION & PLAN)

1. CMS Executive Director

VIGILANCE
2. HOD (L) GM (SALES &
SECRETARY
GM OPERATION MARKETING)
3. GM (M/S)
(TO CMD)
GM (Q.C) GM (GEO. COMPANY
4. GM HRD
GM (TRANS.)
SURVEY) SECRETARIAT
GM 5. GM (P& IR)
(FINANCE) GM (REVENUE)
GM (SAFETY)
GM 6. GM (ADMIN.)
GM (MT.MGT)
(SYSTEM) GM (E & M)
7. GM (W & CD)
CHIEF OF GM (CIVIL)
GM (EQUIP. &
INTERNAL 8. GM (EE) HEMM) GM (CONST.)
AUDIT
9. DY. GM (TA) GM (PROD.)
21 GM (S&IV)
10. CHIEF OF
GM (CHP)
SECURITY
 AREA
(GM)

AVERAGE MANPOWER FOR LAST 5 YEARS AND AS ON 01.05.09

Year ending 2004-05 2005-06 2006-07 2007-08 2008-09 01.05.09

31st March

Average 68871 64200 61610 58808 56553 56383

Manpower

22
COAL STOCK AT CURRENT POSITION

The stock of raw coal as on 31/7/2007 stood at 11.37 million tones.

From which

58% is NON-COKING COAL

42% is COAKING COAL

23
 PRODUCTION

The table below shows the production and productivity figures achieved by C.C.L during the
year 2006-2007 as compared to the targets for the year and actual of 2005-2006.

Particulars 2006-2007 2007-2008 2008-2009

Target Actual Target Actual Target Actual
Production
From OC (MT) 39.970 39.364 42 42.31 46.75 41.68
From UG (MT) 2.630 1.955 2 1.83 2.25 1.56
TOTAL (MT) 42.000 41.895 44 44.14 49.00 43.24

(OC- Open Cast Mining, UG- Under Ground mining, MT- Million Tones)

24
Graphical presentation of comparison of last five years production and productivity in
C.C.L.

YEARS

(y-axis shows production in million tones and X-axis shows years)

UG-UNDERGROUND COAL MINING PRODUCTION

OC-OPEN CAST COAL MINING PRODUCTION

INTRODUCTION

Webster’s dictionary defines a profession as “a calling, vocation or employment requiring

specialized knowledge and often long and intensive academic preparation.” To qualify as a
profession, at least six characteristics must be present.

• A common body of knowledge

• Agreed to performance standards

• A representative professional organization

• An external perception as a profession

25
 • A code of ethics

• Agreed certification procedure

Although human resource has recently gained recognition as a profession compared to more
established professions. The management of company’s people (human resource) has been a
recognized, time-honoured function of every organization.

Human resource management incorporates a number of interrelated job functions and work
processes, whose primary goal is to acquire and retain qualified, valued employees as a source of
competitive advantage for an organization. Typical HR functions include:

HUMAN RESOURCE PLANNING

Anticipating and making provisions for the movement of people into, within and out of
organization.

Staffing

Locating potential applicants and encouraging them to apply for existing or anticipated job
openings (recruitment) and choosing individuals who have relevant qualifications to fill existing
or projected job openings (recruitment) and choosing individuals who have relevant
qualifications to fill existing or projected job openings (selection).These tasks are often
referenced together under a function called staffing.

Job design

Improving jobs through technological and human consideration in order to enhance organization
efficiency and employee satisfaction.

Learning, developing and training

Designing and delivering programs using a variety of methods to develop an employee’s

knowledge, skills and abilities to work at a satisfactory level of performance on the job
(training), and broaden an individual’s skills for future responsibilities (development).

26
Performance Management

Designing and developing programs and tools which help managers and employees establish
performance standards, identify ways to improve performance asses and document work
performance.

Compensation and benefits

Establishing policies and developing programs that fairly compensate employees for work
performance and meet the strategic objectives of the organization. Direct compensation includes
wages, salaries, incentives, bonuses and commissions. Indirect compensation includes the benefit
provided by employers to improve employee’s quality of life. Example of some employee
include – compensation insurance contributions, health care, paid vacation, sick level programs,
Canada compensation plan, Employment insurance and Workers compensation. Payroll is also a
key responsibility included in the total compensation function.

Employee and Labour Relation

Designing and developing HR policies and practices that strive to maintain harmonious working
relationships between departments, employees and managers. Specific functions include
employee communications and managing organization change, absenteeism, sexual harassment,
employment equity, and diversity. When employees are unionized, the process (labour relations)
includes developing maintaining effective working relationships with representative unions,
participating in collective bargaining, providing advice and guidance on grievance procedures
and policy interpretation and managing workforce reductions.

Health and Safety

Designing and developing policies, practices and procedures that provide a hazard- free work
place and comply with all applicable government statutes and regulations. Additional

27
requirements include informing employees about health and safety, enforcing safety rules, and
keeping comprehensive records.

Human Resource Information Management

Designing and maintaining a computerized system that provides current and accurate data for the
purpose of control and decision making. In addition to storing and retrieving HR information,
data is used to produce reports, forecast HR needs, establish strategic, plans careers and
promotions, and evaluate HR policies and practices.

But in today’s intensely competitive and global marketplace, a growing number of organization’s
human resources are now viewed as a source of competitive advantage. There is a greater
recognization that distinctive competencies are obtained through highly developed employee
skills, distinctive organizational cultures, management processes and systems. This is contrast to
traditional emphasis on transferable resources such as equipment. Increasingly it is being
recognized that competitive advantage can be obtained with a high quality workforce that
enables organization to compete on the basis of market responsiveness, product and service
quality, differentiated products and technological innovation.

So, the new HR role is to be viewed from the strategic perspective wherein HR plays an
important and vital role whilst designing and delivering the HR strategy for the organization. The
approach of HR planning activity is no more in isolation but very much aligned to the strategy of
the organization as a whole delivering a strategic impact, the HR strategy needs to be in sync
with the business objectives and the system and processes incorporated must also support
demonstrating the required results. Some of the unsuccessful models/strategy used by the
corporations are generalist strategy, personnel strategy, e-HR strategy, performance culture etc.
The strategies or the models cited do have their own advantage and disadvantages .Some of the
evaluation parameters worthwhile considering while planning the suitable strategy: Priority and
focus, likely impact, size, structure and organization appropriateness, benefits and risks
associated, budget and time constraints, technology usage etc. More than the new strategic role
adopted by the HR fraternity; the contribution of the function has also seen a radical change in
the recent past. The performance assessment methodology and measures incorporated,
introducing HR scorecard and usage of ROI concept in measuring the performance of this
function in terms of financial outputs, have allowed the HR function to crown the status of

28
Strategic Business Units akin to other functions. As the industry rolls into the stream of
knowledge management concepts defining, sharing and impacting of industry and role specific
vital information, the HR professionals are dealing with knowledge and empowered associates
now a days. This necessitates the HR professional to be competent on the personal and
professional grounds requiring to have sound business knowledge, proactiveness and innovative.
Managing change and diversity have become preponderant in the HR agenda. The cross- cultural
and team becoming more obvious and common, HR often takes a consulting role within the
organization enabling to build an employee oriented culture and climate. Combating with the
acute attrition prevailing admits the knowledge industry, the HR professional are enforced to
think out of the box to taste the success of their retention strategies. With the onus of creating an
employee barding-enabling the corporation to attract the potential talents, the HR function
bolsters the value proposition of the corporation.

Review of literature

• Effectiveness of performance Appraisal system it is argued is a function of applying the

right system in right context.

By Klein; The Art o Appraisal

• Performance appraisal system are “home work” that provides the information you need in
order to make appropriate administrative recommendations, hold meaningful feedback
discussions with staff members, and determined were performance improvement is
required

By Marion E. Haynes; Managing Performance

29
• The effectiveness of an Appraisal System is determined by the quality of communication
between the manager and staff member, not by multiple raters, complex scoring methods,
or the form used.

By John D. Drake; Performance Appraisal: One More Time

• Performance appraisal can actually be counter-productive for employees who are in the
greatest need of training and further development

By Victor Buzzottan; Improving your Performance Appraisal

• One of the measure reason Performance management and Performance Appraisal fail is
that too much time is spent on Appraising performance using vague criteria, and not
enough time and effort put into helping employee understand what his job is about, and
the goals and objectives he/she is expected to achieve to be successful. Learn to do goals
setting painlessly.

By Robert Bacal; Learn to plan Performance and set employee goals

• Maximizing and measuring our own performance and that of the people who work for us
is a basic tenant of the work environment. Always use of simple tool and approach that
can be beneficial in achievement performance plan.

By Zack Mansdorf; Performance Management; Identifying work goals

• Most managers and supervisors today are attempting to quantify their departmental
objective and pass them on their employees through performance standards. Despite the
simplicity of this management- by –objective approach, deadlines are missed, quality is
relatively poor and productive is low. The reasons for this may not be the fault of the
employees carrying out the work. The cause is most often associated with the immediate
supervisor’s lack of attention to the realities surrounding objectives and performance
standards require a careful analysis of all the relevant issues.

By Gregory Isaac; Plan for performance

30
• Organizations striving to develop an open and participative approach have begun to give
employees the chance to say what they think of their managers. Such appraisals can only
work in a culture where mangers are willing to listen and learn and effect any necessary
changes as a result.

By Madhukar Shukla; Upward Appraisal and Organizational culture

• At one stage performance appraisal relied mainly on personality characteristics. Sub

ordinates were being appraised by their superior on the extent to which they exhibited
characteristic like, tact, willingness, enthusiasm, and maturity. Mangers were being put
into position of psychologists and required to make subjective ratings without any point
of reference expect their own opinion

By Bob Nelson; Performance Assessment

• Performance appraisal is a part is a part of overall performance management system of an

organization. Through the appraisal process, gap between an individual’s agreed
performance standard his actual performance is assessed and appropriate strategies are
drawn for subsequent performance cycle. This is a useful performance enhancement
exercise. In many Organizations, PMS is linked with other systems like salary &
Benefits, Training &Development and Succession Planning.

By H.K.Shukla; Straties Human Resource Management

• Bi-directional performance recognizes that for performance to improve, both manager

and employee must receive feedback on how well they are fulfilling their obligations to
their organizations and to each other.

By Robert bacal; when Boss evaluates you

• Most advocates of total quality believe that total quality management (TQM) and
performance appraisal is incompatible. For them company managers can choose to
promote either of these two approaches but not both. Since fundamental TQM
requirements contradict the basic elements of performance appraisal, it would be
impossible to combine them. Thus, companies may have to re-examine their approaches
to corporate leadership.

By, Peters Scholtes; TQM& Performance Appraisal

31
 • In recent year there has been a shift away from the traditional employee rating system,
which places emphasis on the use of such rating for administrative actions to service
ratings, which serves as a basis for counseling in employee regarding the improvement of
their performance of the job. For example, many personnel authority believe that
disciplinary matters should be created in terms of specific causes rather than in terms of
general service-ratings programme the new look in employee ratings emphasize the use
of performance evaluation and opportunity for the supervisor to give the employee a
better understanding of the job and what is expected of the employee the new look like
wise provide the opportunity for the employee to give input into the scope and sequences
of the task performed.

By, Krishna Raghvan; the Mantra of employee rating system

INTRODUCTION OF P ERFORMANCE APPRAISAL

The history of performance appraisal is quite brief. Its root in the 20th century can be traced to
Taylor’s pioneering Time and Motion studies. But this is not very helpful, for the same may be
said about almost everything in the field of modern human resource management.

As a distinct and formal management procedure used in the evaluation of work performance,
appraisal really dates from the of the second world war-not more than 60 years ago.

Yet in a broader sense, the practice of appraisal is a very ancient art. In the scale of things
historical, it might well lay claim to being the world’s second oldest professional!

There is, says Dulewicz (1989), “…a basic human tendency to make judgment about those one is
working with, as well as about oneself.”Appraisal, it seems, is both inevitable and universal. In
the absence of a carefully structured of appraisal, people will tend to judge the work performance
of others, including subordinates, naturally and informally, arbitrarily.
32
The human inclination to judge can create serious motivational, ethical and legal problems in the
place. Without a structured appraisal system, there is little chance of ensuring that the judgment
made will be lawful, fair, defensible and accurate.

Performance appraisal systems began as simple methods of income justification. This

is,appraisal was used to decide whether or not the salary or wage of an individual employee was
justified.

The process was firmly linked to material outcomes. If an employee’s performance was found to
be less than ideal, a cut in pay would follow. On the other hand, if their performance was better
than the supervisor expected, a pay rise was in order.

Little consideration, if any, was given to the developmental possibilities of appraisal. It was felt
that a cut in pay, or a rise, should provide the only required impetus for an employee to either
improve or continue perform well.

Sometimes this basic system succeeded in getting the results that were intended; but more often
than not, it failed.

For example, early motivational researchers were aware that different people with roughly equal
work abilities could be paid the same amount of money and yet have quite different levels of
motivation and performance.

These observations were confirmed in empirical studies. Pay rates were important, yes; but they
were not the only element had an impact on employee performance. It was found that other issue,
such as morale and self esteem, could also have a major influence

As a result, the traditional emphasis on reward outcomes was progressively rejected. In the 1950s
in the United States, potential usefulness of appraisal as tool for motivation and development
was gradually recognized.

The general model of performance appraisal, as it is known today, began from that time.

In today’s competitive world, various organization and companies are struggling for maximum
consumer satisfaction and economic benefit. The degree of success that all employees have in
reaching their desired goals is important in determining organization effectiveness.

33
 The assessment of success achieved by employee becomes a critical part of HRM. This leads us
to the need of performance appraisal. In simple terms, performance appraisal may be understood
as the assessment of an individual’s performance in a systematic way.

A formal definition of performance appraisal is:

“It is the systematic evolution of the individual with respect to his or her performance on
the job and his or her potential for development.”

Performance Appraisal can be understood as:

A formal, structured system of measuring and evaluating an employee’s job related

behaviors and outcomes to discover how and why the employee is presently performing on the job
and how the employee can perform more effectively in the future so that the employee
,organization, and society all benefit.

OBJECTIVES OF PERFORMANCE APPRAISAL

Data relating to performance assessment of employees are recorded, stored, and use for several
purposes. The main purposes of employees assessment are:

1. To effect promotion based on competence and performance.

2. To confirm the services of probationary employees upon their completing the

probationary period satisfactorily.

3. To assess the training and development needs of employees.

4. To decide upon a pay raise where (as in the unorganized sector) regular pay scale has
been fixed.

34
 5. To let the employees know where they stand in so far as their performance is
concerned and to assist them with constructive criticism and guidance for the purpose
of their development.

6. To improve communication. Performance Appraisal provides a format for dialogue

between the superior and the subordinate, and improves understanding of personal
goals and concerns. This can also have the effect of increasing the trust between the
rater and the ratee.

7. Finally, Performance Appraisal can be used to determined whether HR programmes

such as selection, training ,and transfers have been effective or not.

Broadly, performance Appraisal serves four objectives

I. Developmental uses,

II. Administrative uses/decision

III. Organizational maintenance/ objectives and

IV. Documentation purposes.

MULTIPLE PURPOSE OF PERFORMANCE ASSESSMENT

General Application Specific Purpose

Developmental uses Identification of individual needs

Performance feedback

Determining transfer and job

Assignments

Identification of individual

35
 Strengths and developmental needs

Administrative uses/ Decisions Salary

Promotion

Retention of termination

Recognition of individual

Performance

Lay-offs

Identification of poor Performers

Organizational maintenance/ objectives HR Planning

Determining organization
Training needs
Evaluation of organizational
goal Achievement
Information of goal identification
Evaulation of HR systems
Reinforcement of organizational
Development needs.

Documentation Criteria for validation research

Documentation for HR decisions
Helping to meet legal
requirements

36
THE APPRAISAL PROCESS

The process of appraisal begins with the establishment of performance standards. These
performance standards should be clear and objective enough to be understood and measured.

The next step is to communicate these standards to the employees. To make the communication
effective, ‘feedback is necessary from the subordinate to the manager.

The third steps in the appraisal process are the measurement of performance. This step is
concerned with the decision on appraisal method and implementation of the system selected.

The fourth steps in the comparison of actual performance with standards.

At the next step, the results of appraisal are discussed periodically with the employees, where
strength, weakness and difficulties are discussed so that performance can be improved.

The final step is the initiation of corrective action whenever necessary.

37
METHODS OF APPRAISAL

Numerous methods have been devised to measure the quantity and quality of employee’s job
performance. Broadly all the approaches to appraisal can be classified into:

1 Past oriented methods,

2 Future oriented methods.

Each group has several techniques for appraising employee’s performance

38
 METHODS

PAST-ORIENTED FUTURE ORIENTED

Rating scales Management by objective

Checklist

Forced choice method

Forced distribution method 360-Degree appraisal

Critical incident methods

Behaviorally anchored scales

39
Field review methods

Performance tests and observations Psychological appraisal

Annual confidential reports

Essay methods

Cost accounting approach

Comparative evaluation approach Assessment centre

1. PAST –ORIENTED METHODS

Ratings scales

This is the simplest and most popular technique for appraising employee performance. The
typical rating scale system consists of several numerical scales, each representing a job-related
performance criterion such as dependability, initiative, output, attendance, attitude, co-operation,
and the like. Each scales ranges from excellent to poor. The rater checks the appropriate
performance level on each criterion, then computes the employee’s total numerical scores.

Checklist

Under this method, a checklist of statement on the traits of employee and his or her job is
prepared in two columns-viz,a ‘Yes’ column and a ‘No’ column. All that the rater (immediate
superior) should do is tick the ‘Yes’ column if the answer to the statement is positive and in
column ‘No’if the answer is negative. After ticking off against each item, the rater forwards the
list to the HR department where the actual assessment of the employee takes place. The HR
department assigns certain points to each ‘Yes’ ticked. Depending on the number of ‘Yes’ the

40
total score is arrived. When points are allotted to the checklist, the technique becomes a weighted
checklist.

FORCED CHOICE METHODS

In this the rater is given a series of statements about an employee. These statements are arranged
in blocks of two or more, and the rater indicates which statements are most or least descriptive of
the employee. This method is known as the forced choice methods because the rater is forced to
select statements which are readymade.

FORCED DISTRIBUTION METHOD

One of the errors in rating is leniency-clustering a large number of employee around a high point
on a rating scale. The forced distribution method seeks to overcome the problem by compelling
the rater to distribute the rates on all points on the rating scale. The method operates under an
assumption that the employee performance level conforms to a normal statistical distribution.
Generally it is assumed that employee performance level conforms to a bell-shaped curve

CRITICAL INCIDENTS METHOD

The critical incidents methods of employee assessment have generated a lot of interest these
days. The approach focuses on certain critical behaviors of an employee that make all the
difference between effective and non-effective performance of a job. Such incidents are recorded
by the superiors as and when they occur.

BEHAVIORALLY ANCHORED RATING SCALES

Behaviorally anchored scale, sometimes called behavioral expectation scales, are rating scales
whose scale points are determined by statements of effective and ineffective behaviors. They are
41
said to be behaviorally anchored in that the scales represent a range of descriptive statements of
behavior varying from the least to the most effective. A rater must indicate which behavior on
each scale best describes an employee’s performance. Behaviorally anchored rating scales
(BARS) have the following features:

1. Areas of performance to be evaluated are identified and defined by the people who will use the
scales.

2. The scales are anchored by descriptions of actual job behaviors that, supervisors agree,
represent specific level of performance. The result is a set of rating scales in which both
dimensions and anchors are precisely defined.

3. All dimensions of performance to be evaluated are based on observable behaviors and are
relevant to the job being evaluated since BARS are tailor made for the job.

4. Since the raters who will actually use the scales are actively involved in the development
process, they are more likely to be committed to the final product.

BARS were developed to provide results which subordinates could use to improve performance.
Supervisors would feel comfortable to give feedback to the ratees.

FIELD REVIEW METHOD

This is an appraisal by someone outside the assesse’s own department, usually someone from the
corporate office or the HR department. The outsider reviews employee records and holds
interviews with the rate and his or her superior. The method is used for making promotional
decision at the managerial level.

PERFORMANCE TESTS AND OBSERVATIONS

With a limited number of jobs, employee assessment may be based upon a test of knowledge or
skills. The test may be of the paper-and-pencil variety or an actual demonstration of skills. The
test must be reliable and validated to be useful. Even then, performance tests are apt to measure
potential more than actual performance.

42
 CONFIDNTIAL RECORDS

Confidential records are maintained mostly in government departments, though its application in
the industry is not ruled out. ITI, for example had followed method for a long time. Called the
Annual Confidential Report (ACR),

The approach had 14item-

1. Attendance
2. Self-expression (written or oral)
3. Ability to work with others
4. Leadership
5. Initiative
6. Technical ability(job knowledge)
7. Ability to understand new material
8. Ability to reason
9. Originality and resourcefulness,
10. Areas of work that suits the person best,
11. Judgment
12. Integrity
13. Responsibility, and
14. Defect-indebtedness, memo served, etc.

twelve of these were filled on a four point grade scale (Excellent, Good, Fair, Poor).For integrity,
there were special instructions from the management. Justification was separately given

43
(outstanding, Very good, Average, Poor), again with justification for rating as outstanding or
poor. Recommendations for promotion were also given. The ACR contained recommendations
and signature of the rater, the head of the department and the CMD.

The system was highly secretive and confidential. Feedback to the assesses was given only in
case of an adverse entry. The ACR was highly subjective. Ratings were easily manipulated
because the evolution was linked to promotion. Even ITI has discontinued this system for these
reasons

Essay Method

In the essay method, the rater must describe the employee within a number of broad categories,
such as

1. The rater’s overall impression of the employee’s performance,

2. The promotability of the employee,

3. The jobs that the employee is now able to or qualified to performed,

4. The strengths and weakness of the employee, and

5. The training and development assistance required by the employee.

The strength of the essay method depends on the writing skills and analytical ability of the rater.
Although this method may be used independently, it is most frequently found in combination
with others. It is extremely useful in filing information gaps about the employee.

COST ACCOUNTING METHOD

This method evaluates performance from the monetary returns the employee yields to his or her
organization. A relationship is established between the cost included in keeping the employee

44
and the benefit the organization derives from him or her. Performance of the employee is then
evaluated based on the established relationship between the cost and the benefit.

COMPARATIVE EVALUATION APPROACHES

These are a collection of different methods that compare one worker’s performance with that the
of his/her co-workers. As these appraisals can results in a ranking from best to worst, they are
useful in deciding merit-pay increases, promotions and organizations rewards. The usual
comparative forms used in this kind of evaluation are the ranking method and the paired
comparison method.

RANKING METHOD

In this, the superior ranks his or her subordinates in their merit, starting from the best to the
worst. All that the HR department knows is that A is better than B. The ‘how’ and ‘why’ are not
questioned, nor answered. No attempts are made to factionalize what is being appraised into
component elements. This method is subjected to the halo and regency effects, although rankings
by two or more raters can be averaged to help reduce biases.

PAIRED-COMPARISON METHODS

Under these methods, the appraiser compares each with every other employee, one at a time. For
example, there are five employees named A, B, C, D, and E. The performance of A is first
compared with the performance of B and a decision is made about whose performance is better.
Then A is compared with C, D and E in that order.

The same procedure is repeated for other employees. The number of comparisons may be
calculated with the help of this formula:

N (N-1)*1/2 where N stands for the number of employee to be compared. After the completion
of comparison, the results can be tabulated, and a rank is created from the number of times each
person’s is considered to be superior.

45
2. FUTURE-ORIENTED APPRAISALS

It is enough if only the past performance is assessed. How an employee can perform in the days
to come is equally important. This can be assessed by focusing on employee potential or setting
future performance goals. The commonly used future-oriented techniques are:

MANAGEMENT BY OBJECTIVES (MBO)

It was Peter F.Drucker who first gave the concept of MBO to the world back in 1954 when his
The Practice of Management was first published. The MBO concept, as was conceived by
Drucker, reflects a management philosophy which values and utilizes employee contribution.

How MBO works can be describes in four steps:

The first step is to establish the goals each subordinates is to attain. In some organization,
superiors and subordinates work together to establish goals. In others, superiors established goal
for subordinates. The goals typically refer to the describes outcome to be achieved. These goals
can be then by used to evaluate employee performance.

The second step involves setting the performance standard for the subordinates in a previously
arranged time period. As subordinates perform, they know fairly well what there is to do, what
has been done, and what remains to be done.

In the third step, the actual level of goal attainment is compared with the goal agreed upon. The
evaluator explores reasons for the goals that were not met and for the goal that were exceeded.
This step helps determine possible training needs. It also alerts the superior to conditions in the
organization that may affect a subordinate but over which the subordinates has no control.

The final step involves establishing new goals and, possibly, new strategies for goals not
previously attained. At this point, subordinates and superior involvement in goal setting may

46
change. Subordinates who successfully reach the established goals may be allowed to participate
more in the goal setting process the next time. The process is then repeated.

MBO has been criticized also. One comment made against the approach is that it is not
applicable to all jobs in all organizations. Jobs with little or no flexibility, such as assembly-line
work, are not compatible with MBO. An assembly line worker usually has so little job flexibility
that the performance standards and objectives are already determined. The MBO process seems
to be most useful with managerial personnel and employee who have a fairly wide range of
flexibility and self control in their jobs. Besides when the results of an MBO system are to be
used to all to allocate organizational rewards, employees may be less to less likely to establish
challenging goals. They are confident that they can accomplish. Further, the allocation of merit
pay on a semi-annual or annual basis may encourage the setting up of goals with short tune
horizons to the disadvantage of important long term goals.

PSYCHOLOGICAL APPRAISALS

Large organizations employ full-time industrial psychologist. When psychologists are used for
evaluations, they assess an individual’s future potential and not past performance. The appraisals
normally consist of in-depth interviews, psychological test, discussion with supervisors and a
review of other evaluations. The psychologist then writes an evaluation of the employees
intellectual, emotional motivations and other related characteristics that suggest individual
potential and may predict future performance. The evolution by the psychologist mat be for a
specific job opening for which the persons for which the persons is being considered, or it may
be a global assessment of his or her future potentials. From these evaluations, placement and
development decisions may be made to shape the persons career

ASSESSMENT CENTERS

An assessment centre is a central location where managers may come together to have their
participation in job related exercises evaluated by trained observers. The principle idea is to
evaluate managers over a period of time, say one to three days, by observing (and later

47
evaluating) their behaviors across a series of select exercises or work samples. Assesses are
requested to participate in in-basket exercises, work groups (without leaders),computer

simulations, role playing, and other similar activities which require the same attributes for
successful performance, as in the actual job. After recording their observations of rate behaviors,
the raters meet for the discussion of observations. Self-appraisal and peer evaluation are thrown
in for final rating.

The characteristics assessed in a typical assessment centre include assertiveness, persuasive

ability, communicating ability, planning & organization ability, self confidence, and résistance to
stress, energy level, decision-making, sensitivity to the feelings of others, administrative ability,
creativity and mental alertness.

First developed in the US and the UK in 1943, the assessment centre is gaining popularity in our
country. Crompton Greaves, Eicher, HLL, Modi Xerox are using the technique with results being
highly positive.

The problem with the assessment centre is their cost. Not only are the assesses away from their
jobs while the company pays for their travel and loading, but the evaluators are often company
managers who are assigned to the assessment centre for short durations. These managers are
often supplemented by psychologists and HR specialists who run the center and also make
evaluations. Hence this approach is cost-effective only in large organizations.

Assessment-center staffs are often influenced by subjective elements, such as personality of the
candidates. Raters tend to evaluate the quality of the individual’s social skill rather than the
quality of the decisions he/she makes. Assessment center ratings seem to be strongly influenced
by the participant’s interpersonal skills.

The approach also involves real hazards. One of the most obvious is the examination-taking
syndrome. Solid performers in day to day operations feel suffocated in the simulated
environment. Another drawback is its potential adverse effect on those not selected to participate
in the exercise.

48
Employee who receives a poor report from the center may react in negative ways. A rejected
employee would return to his or her former job, satisfied that he or she would not be promoted to
a job he/she couldn’t handle. However, a good performer at one level may leave the organization

in order to remove the bad assessment report from his or her work record. Thus, a poor report
can demoralize an employee who was once an asset.

But a well-conducted assessment center can and does achieve better forecast of fortune
performance and progress than other methods of appraisal. Also, reability, content validity, and
predictive validity are said to be high in the assessment centers.

The test also makes sure that the wrong people are not hired or promoted. Finally, the
assessment-center test clearly defines the criteria for selection and promotion.

360-Degree Feedback

Where multiple raters are involved in evaluating performance, the technique is called 360-degree
appraisal. The 360-degree technique is understood as systematic collection of performance data
on an individual or group, derived from a number of stakeholders-the stake being the immediate
supervisors, team members, customers, peers and self. If fact, any one who has useful
information on ‘how an employee does the job’ may be one of the appraisers.

The 360-degree appraisal provides a broader perspective about an employee’s performance. In

addition, the technique facilities greater self development of the employee. For one’s
development, multi-source feedback is highly useful. It enables an employee to compare his or
her perception about self with perceptions of others. Besides, the360-degree appraisal provides
formalized communication links between an employee and his or her customer. It makes the
employee feel much more accountable to his or her internal or external customers. The
techniques are particularly helpful in assessing softs skills possessed by employees. By design,
the 360 degree appraisal is effective in identifying and measuring interpersonal skills, customer’s
satisfaction, and team-building skills.

49
However, there are drawbacks associated with the 360-degree feedback. Receiving feedback on
performance from multiple sources can be intimidating. It is essential that the organization create
a non-threatening environment by emphasizing the positive impact of the technique on an

employee’s performance & development. Further, firms that use the technique take a long time
on selecting and the rater, designing questionnaires and analyzing the data. In addition, multiple
raters are less adept at providing a balanced and objective feedback than the supervisors who are
sought to be replaced. Raters can have enormous problems separating honest observation from
personal from personal differences and biases.

Pitfalls notwithstanding, more and more number of firms are using the 360-degree appraisal
technique to assess the performance of their employees.

APPRAISALS ERRORS

The ideal approach to performance appraisal is that in which the evaluator is free from personal
biases and prejudices. But there are many significant factors which deter or objective of the
evaluation.

1. Leniency Error:-

every evaluator has his own value system which acts as a standard against which he makes
his appraisals. Relative to the true or actual performance an individual exhibit .This is the
tendency of awarding higher marks than what is really due. This depends on variation of
value system or standard between different raters.

1. Halo Effect:-

sometimes an employee can create a certain impression on the rater because of some
incidents or behavior. This could be either positive or negative. For example, an
employee might have been selected as a champion in athletics meet. This good
impression has a tendency to influence the rater to provide higher marks on all factors
50
 being evaluated. Similarly a person who is shabbily dressed for an interview give a bad
impression on the rater which carry negative feedback, while he is being appraised,
giving a chance of putting less marks on all points in the appraisal card.

2. Similarity Error:-

This is the situation in which apprisee possesses a certain similarity or identity with the
rater himself. It could be identity in ideology, personality, cast, creed or language etc.

3. Central Tendency:-

Appraisers have a tendency to play safe. This results in ratings all employees “above
average” or “good”. Normally in all organizations there are about 10 percent excellent
and 10 percent very poor. One cannot ignore this aspect.

4. Reward Effect:-

Some time rating can effect promotion or some such reward to which the employee is a
candidate. The tendency of ratter is to award some “extra marks” in such occasions.

5. Recent Incident Effects:-

Normally the annual appraisals are made some time in the month of December every
year. This is the error in which the rater is biased because of certain incidents which
occurred during a period just prior to the date of appraisal. If such an incident has created
a good impression on the rater, it leads to award of “higher marks” than deserved and
vice-versa.

6. Raters Error:-

If the rater is only one , all the above errors will have little effect in rankings since errors
are equally effected to all the employees even though individual marks vary from realistic
51
analysis . The problem becomes acute when raters are many. We have different type of
raters, very strict or very relaxed. The strict raters put lesser marks whereas the relaxed
raters give very high marks. Thus, the employees who are marked/appraised by strict
rater suffer because the annual confidential reports contains the rater marks of appraisal,
which form the basis of further promotion or lucrative assignment or choice transfer etc.
The personality of rater is another factor for such errors. For example the marks allotted
will be generally on the lower side by a rater who believes in “Theory of X” compared to
another rater who believes in “Theory of Y”.

52
 METHODS OF IMPROVING PERFORMANCE APPRAISAL

1. Use Behaviour Based Scales:-

The BARS should be used instead of traits or personality attributes for appraisal.

2. Combine individual and group ranking:-

These are the methods of classifying employees in various grades and indicate position of each
employee in their respective in their grades. This will also revel the nature (strict or
relaxed)raters and might help to correct them.

3. Continuous feedback:-

If the superior and worker interact often and confront problems, solution and performance,
annual appraisal will not be a surprise to the subordinate. A sort of partnership can develop
where supervisors continuously appraises him the areas requiring improvement.

4. Multiple Raters:-

Uses of multiple raters minimize raters error discussed above. This can also assist to employ
suitably qualified and competent rater to appraise a person in specialized areas. This latter
method is also called “Selective Rating Method”.

5. Training Appraise/Raters:-

Suitable training assist a lot to bring in uniformity in criteria and measurement of performance.

6. Peer Evaluation:-
Here peers are asked to evaluate their colleagues and suitable weight age is assigned.

7.Rewards to Accurate Appraise/Raters:

This will provide the following
1. Improve motivation to become objective in appraisal.
2. Improve value of appraisal.
Very often raters consider, rating is a routine affair which has “no value” on career
prospects/promotion etc.of employees.

53
OBJECTIVE OF THE STUDY

Main objective for the study of Performance Appraisal in CCL are as follows:-

1. To study in detail the actual working of a modern Performance Appraisal System.

2. To know the method of Appraisal in CCL, and its effectiveness on the workers and to
find out how much the system is effective in reaching its target.

3. To interact at different level of the organization to formulate an overall opinion regarding

the Performance Appraisal System.

4. To know the level of satisfaction, then reaction against the system, scope of introducing
new and most modern technique of Appraisal.

54
METHODOLOGY

Performance appraisal practice in any sector becomes effective only when the outcome of the
deliverable meets business requirements. This gets reflected in the matching of human business
requirements that embark upon after having effective and robust appraisal process which focuses
on competence need identification. With this in mind a survey was conducted by the researcher
to see whether the objective laid down by the organization regarding performance appraisal was
obtained or not

The questionnaires were distributed among the executive and non-executive staff and were to be
filled by them. The researcher met some of the employee personally and interviewed them. The
questionnaire was collected later on further analysis.

METHODS OF DATA COLLECTION

The task of data collection begins after a research problem has been defined and research design/
plan chalked out. While deciding about the method of data collection to be used for the study, the
researcher should keep in mind two types viz; primary and secondary.

METHODS OF PRIMARY DATA COLLECTION

1. Questionnaire

2. personal Interview

55
1. Questionnaire:

Questionnaires were distributed among the eligible participants and were to be filled by them
.The researcher explained the questions to the participants who were unable to get the
implication of the given question and helped in filling up the questionnaire. The questionnaires
were collected later for further analysis.

2. Personal Interview: While conducting the survey the researcher went to every department
and interviewed non-executive staffs. For getting a full picture of performance appraisal system
prevailing at CCL and its pitfalls, it was necessary or needs of the time to conduct an interview
of employees at different levels.

Secondary data collection:-

Researcher used data that were published in these forms:-

1. Technical and Trade journals

2. Books, Magazines and News papers

3. Reports and Publications of various associations connected with business and industry.

SIZE OF SAMPLE
56
The sample of study for employees 10% of the universe i.e non-executive (which was1300) of
different department which were randomly selected by the researcher.

UNIVERSE

The universe for researcher for constituted of all non executives working in various department
at C.C.L Darbhanga House, Ranchi (Head Quarter).

CONSTRAINTS IN DATA COLLECTION

While doing the project the researcher faced many difficulties as a result of which the number of
responses received were less than expected number.

1. Some participants were reluctant to fill up the questionnaire with the excuse that they were not
allowed to share such information related to their Performance Appraisal.

2. Some of the staffs were not at all willing to corporate due to which the researcher had taken
best effort to persuade then to come on but result was not satisfactorily.

PERFORMANCE APPRAISAL SYSTEM AT A GLANCE

57
 (Adopted for the year 1986-87 on words)
Performance appraisal system for EXECUTIVE level employees in CCL is known as Executive
Evolution Report (EER).

The main objective of the (Executive Evaluation Report)is to evaluate and identify potential and
development needs for the Executive’s growth towards achievement of corporate objective.

Performance appraisal of Executives employees in CCL is carried out through Self-appraisal and
Rating method.

The promotion criteria in CCL are divided into two categories depends upon the level of the
post-

a) The officer of E-5 rank and below –

The promotion is done on the basis of seniority cum merit basis i.e. seniority is given higher
weightage than merit.

b) The officer of E-6 rank and above -

The promotion is done on the basis of merit cum seniority i.e. merit is given higher weightage
than seniority.

Rating of the Executive employees is done by the appraisee’s reporting officer and then it is
reviewed by the two reviewing officer one by one and at lastly rating is done by the Functional
Head of the organization.

Appraisal Year: 12 months (1st April to 31st March) Appropriate PAR from will be made
available to the executives (appraise) by the personnel department in the first week of April
every year.

The performance appraisal system followed at CCL is objective and step by step method.

Apprise: executive working under a superior.

Appraise1st: Under whom the Appraise works

. 2nd: Executive who functionally or directly oversees the activities of the Appraise.

3rd: Any other who functionally or directly oversees the activities of the Appraise.

58
Reviewer: A very senior officer (Functional Head of the organization) who gives final grading
on the PAR

The whole process of performance evaluation involves the following steps.

FIXING OF TAAD

SELF APPRAISAL BY
THE EMPLOYEE

ASSESSMENT OF
RATING THE
EMPLOYEE’S

REVIEW OF THE
GRADING BY THE 1st
LEVEL REVIEW
OFFICER

REVIEW OF THE
GRADING BY THE 2nd
LEVEL REVIEW OFFICER

FINALIZATION OF THE
GRADING BY THE
FUNCTIONAL HEAD OF
THE ORGANISATION

Grading system (overall)

59
A: Outstanding

B: Very Good

C: Good

D: Average

E: Below Average

Grading for personality and potential traits

G: Good

N: Normal

P: Poor

Developments needs: in respect of training specific recommendation about the topic be

mentioned.

The suggestion for job- rotation be indicated by putting ( ) tick mark columns.

Form

A: Grade E5 to E9 all disciplines working at Headquarters area and other offices

B: E5 to E9 posted at collieries /washeries /Workshop/ subareas and executives in charge of

define area of activities

C: For executives of grade E1 to E4 of all disciplines

D: For directly recruited officers for competitions of probation period, after 12 months

E: For JET / Management Trainee/ LWO for initial training of 12 months or more.

F: For the promoters for assessment of 12 months performance, for completion of probation
period. Interim performance report (IPR) be used for period prior to promotion or period after the
clearance of probation period, till the beginning or end of the appraisal year.

60
OBJECTIVES AND RULES

The essential features of the Performance Appraisal System are:

1: Analysis of performance essentially with a view to determine the input to effort and not
necessarily the output only.

2. To bring into sharper focus results achieved in respect of key areas.

3. Analysis of the potential features of appraise’s personality, both professional and management
for his development in the organization.

4. To suggest the area of further development in respect of nature of assignment.

5. Suggestions with regard to training on the job and off the job, for further growth and
development.

The proposed performance seeks to provide guideline to the Appraiser to make PAR system
development oriented through sharper analysis of the individual, the situation & the
organizational demands.

The system also would help locating executives with different potential strength who could meet
the organizational needs of higher production through induction of new technology and at lower
costs. We could call such executives as high flyers who has to be encouraged to continue to
perform even better in the future.

On the basis of feedback received about feasibility or executives performance appraisal system
designed during 1987, further modification and structuring was done named as CIL Executives
Evaluation Report(Task Assignment & Document) came out during 1993-1993 and since then it
is operative accordingly.

GUIDELINE FOR EXECUTIVE EVALUTION REPORT (EER)

61
The OBJECTIVE of the EXECVTIVE EVALUTION REPORT (EER) is to evaluate
performance and identify potential and development needs for the Executive’s growth towards
achievement of Corporate Objectives.

2.1) In the circumstances , it is necessary that the target are assessed taking into account the
constraints. As such, the first requirements is the preparation of accepted Task Assignment &
Acceptance Documents(TAAD) by reporting authority ,in the consultation with the appraise, by
the end of the financial year. Four –monthly review will be made in regard to the task
performance on the basis of the task Assignment & Acceptance Document in which the task to
be performed during a particular four months period will be indicated by the controlling officer.

2.2) While preparing the key task for the TAAD, the following parameters (which are relevant to
the appraisee) shall be given under different task areas:

Quality Industrial Relation

Quantity Welfare

Development Asset Management

Cost etc.

3.) As the planning in terms of the frame for the jobs is necessary for achieving the target, the
Appraise should discuss the 4 program of task with the Appraisee and finalize it. This would be
supporting documents for monitoring the progress for every four months. The Reporting Officer
will discuss the assigned task etc. with the Appraisee before the beginning of every four months
and record in this documents

4.) With the completion of the Assessment year the appraisee will be supplied with the EER
from duly numbered by the Executives Establishment Department directly, by the end of
January, so that format should be available with the appraise latest by 28th February. Self
Appraisal in the printed format duly filled is must be handed over to the reporting officer by 30 th
April.

62
5.1) the reporting officer will complete his evaluation and send it to the first level reviewer by
15th may.

5.2) If the reviewing officer (both Staff and Line) differs with the assessment of the Reporting
Officer, he should give reasons for final grading with the final comment. The first reviewer will
complete the evaluation and same to the Second level review officer (both Staff and Line) by 15th
June.

5.3)The second level reviewing officer (both Staff and Line)y will evaluate the performance by
30th June giving reasons, if any, for disagreeing with the first level Review Officer.

5.4) Subsequent to the above, the EER shall be sent to the functional head of the company for his
review, and within 15days thereafter to the Executive Establishment Department for record, the
reporting officer shall not initiate the EER unless the appraisee has worked at least for a period
of 4 (four) months under him in the relevant assessment.

5.5)In case there is a difference of opinion between the first level review officer and the second
level Review Officer, the EER shall be sent to the 3rd Level Review Officer.

6) The following approach has been considered for the overall assessment.

6.1)For officer of the rank of E-6 and below, the performance evaluation with reference to the
task performed as mentioned in TAAD shall carry 60 marks as against 40 marks for the
personality Traits, Leadership and other criteria.

6.2)In the case of officers of E-7 rank and above levels, since Managerial skills, Union
Management, Decision Making, judgment etc. are considered equally important , 50 marks have
been assigned for personal Traits and remaining 50 marks for performance.

6.3) while reviewing the EER, the Reporting Officer shall take into consideration performance as
well as the constraints and arrive at his final Marking/Rating.

7.) It is the intention of the company to identify the High performance with a view to develop
their potential and utilize them in the overall interest of the company. As such, the format
proposed has taken into consideration the grading under four categories as follows:

63
 Excellent: 85-100 Adequate: 41-59

Commendable: 60-84 Inadequate: 40 and

(Note: it is expected that the First Level Review Officer will discuss with the Appraise and
Reporting Officer in all cases where the grading of the officer is either INADEQUATE or
EXCELLENT. All such cases of the Executives whose ranking has been EXCELLENT or
INADEQUQTE shall also go to the third level reviewing authority.)

8) The grading of ADEQUATE and INADEQUATE shall be communicated to the Executive

immediately after receipt of his report from the Executive Establishment Department.

9. (a)The EER of Executive whose ranking have been INADEQUATE shall be considered by a
committee of Director(Personnel), Director (Tech) and the Functional head to check, if any
moderation is required and to arrive at the action to be taken by the company, for the
development of these Executive.

b) The EER of Executive whose ranking has been Excellent shall considered by a Committee of
Directors (Pers.), Directors (Tech.) and the Functional Head to check, if any moderation is
required and to arrive at such steps that may be necessary for further development of the
executives.

10. Similarly in the case of EERs maintained at the level of CIL Hqrs, the review on similar line
shall be undertaken by a committee consisting of Directors (P&IR), Directors (Tech), and the
functional Head.

11. Personnel Department of coal India Ltd. Will send appropriate instructions with regard to the
details as to initiation of EER and review of EER etc.

Note : (1) In keeping with objective of this EER,as stated in Para 1 above, the assessment by the
reporting officer and the Reviewing officer shall be done for the grooming and betterment of the
executive.

64
The entries/observation are required to be constructive ,as the case of improvement/Assistance
Areas in section B(v) ,the qualitative ,aspects of section C and in Training and development
Needs in section D.

Similarly, it is expected that the executives will approach and handle his/her self assessment
objectively and with a befitting maturity.

2. Review/counseling card is to be prepared for every four month period in duplicate and to be
signed by both Appraise and the Reporting Officer. The duplicate (perforated) copy of each
Review card to be handed over to the Appraisee.

3. Format “D” TRAINING AND DEVELOPMENT NEEDS to be prepared in triplicate –one to

remain with EER and two copies to be sent to the Functional Head at Corporate Head Office.
The functional head after recording his recommendation shall send one copy to GM (HRD) for
arranging training.

FILLING OF THE FORM ILLUSTRATIVE EXAMPLES

Some examples of entries to help the Appraisee and Appraisers to fill the PAR form indicated
are indicated below:

65
Constraints: Non –availability of equipment.

: Inadequate delegation power.

: Long geographical distance.

: Communication net- work is weak.

: Office records are inadequate and traceable.

: Inadequate laboratory facilities/ support.

: Voluminous back –log/untrained staff.

Opportunities: Equipment/P&M new.

: Well trained personnel.

: Proximity to industrial city.

: Infrastructural support.

: Peer group support.

: New vistas of challenge.

Development: This means new processes, system procedure which are developed and adopted.
Only one item would be more than adequate. For example, reference may be made about new
system for compiling accounts on time, standardization of equipment, new system of
maintenance, safety and new mining methods etc

: In respect of development of people mention name of one or two subordinates

who were motivated to their working may be listed indicating specially the manner in which it
was done.

Special Achievements: Mention may be made about the earnestness with results were achieved,
for example these could be listed.
66
 -preparation of operation manual

-Absorption of new technology

-Substantial increase in equipment utilization

-Staff deployment/retraining

-Designing new information system

-Substantial equipment re-habilitation

- Improvement in quality of coal and sales realization

Special Interest:

Mention may be made of the Appraiser’s professional interest which may be even not related to
the job entrusted to him. These could be in respect of writing, reading, cultural activities, sports
etc.

: In the matter of social managerial dimension has to be made about the

contribution of the executives in developing the social organization in the company including
contribution to activities outside the company. The Appraiser has to make his observation by
indicating G (Good) ,N(Normal),and P(poor).

Special Instructions

In respect of Development needs of an executives reference be made about areas of training

which would help the executives to grow further in his career, and these may be indicated in
terms of topics in respect of managerial skills and technical skills. Job rotation of the executives
as a means of his further development and career growth is indicated.

67
General instructions

In all case where the grading are Outstanding, Very good, and E (below average), the Appraise
must mention specifically the event to support his views in the column provide for criteria
incidents; otherwise it will be considered subjective.

Mere achievements of targets or marginal raise over it do not signify outstanding /very good
performance. Remarks like “hard working and honest” also do not merit a grade of “very good or
outstanding”.

FORM – 1V

(Annual Appraisal Form for all Non-executive Employees Borne in NCWA

Scale of Pay)

Office of the ………………………………………………………………………………………..

Report for year ending……………………………………………………………………………...

68
(Strike out column not applicable)

1. Name of Employee ……………………………………………………………

2. Date of Birth ……………………………………………………………………

3. (a)Designation………………………………………………………………………

(b) Grade ……………………………………………………………………………

(c)Nature of Duties …………………………………………………………………

4. Educational Qualification…………………………………………………………

5. Date of joining the Deptt…………………………………………………………

6. Preceding Deptt/Section of Posting………………………………………………

7. Period for which the employee has worked

Under the Reporting Officer in the year……………………………………………

ASSESSMENT BY THE REPORTING OFFICER

8. Professional/technical general “Very Good” “Good” “Poor”

Knowledge and application

9. If Supervisor:

(a)Capacity to plan, organize and execute

(b)Delegating duties to and taking work

From subordinates exercising effective

Supervision and control, maintenance

Of discipline and leadership

10. Dose he/she rise to occasion? Yes No

11. Cost consciousness yes No

12. Punctuality and regularity in attendance Punctual Irregular

69
13. Industry and aptitude for work “Very Good” “Good” “Poor”

14. Maintenance of official records “Very Good” “Good” “Poor”

15. Accuracy &Speed “Very Good” “Good” “Poor”

16. Capacity to express

17. Has he been warned for any failure?

Or any inadequacy in the year in writing

Or orally? If so, give brief details.

18. Relationship with colleagues and “Very Good” “Good” “Poor”

Fellow employee

19. Was any disciplinary action initiated

against him during the period under

report and if so, the result thereof?

20. Loyalty and honesty

21. Does his health interfere with his work?

22. Fitness for confirmation/promotion

23. General Remarks, if any

24. Overall Grading “Outstanding” “Very Good” “Good” “Poor”

Signature of Reporting Officer

Name (in Block Letters) of the Reporting Officer

70
Dated Designation

REMARKS OF REVIEWING AUTHORITY

“Outstanding” “Very Good” “Good” “Poor”

Signature of Reviewing Officer

Name (in Block Letters) and Designation of the Reviewing Officer

Rating “Poor” will only be considered as Adverse Entry. In case the employee who has been
rated “Poor” or in case of any Adverse Entry in the above report, the employee should be shown
this report and in the token there of his signature be obtained.

Signature of the Employee

INFERENCE

Question No. – 1

Out of the respondent so interviewed indicates that 83% of the persons are aware of the method
of performance appraisal system applicable to them where as 3% of respondents are not aware of
the method of Performance Appraisal and14 % have expressed their ignorance to the
Performance Appraisal system prevailing in the company.

71
On the whole it indicates that people are aware of the Performance Appraisal system applicable
to the company.

Question No. – 2

Out of the respondent so interviewed indicates that 100 % of persons are agreed to the need of
Performance Appraisal system in which 67 % are agreed and 33 % are strongly agreed.

So it can be concluded that majority of the people agree that there is a need of Performance
Appraisal system in the organization.

72
Question No. – 3

Out of the respondents so interviewed indicates that only 5% of people are rated the performance
rating system prevailing in the company to excellent and 17% of the respondents are rated to the
prevailing system to very good where as 61% of people rated it good and 17 % considered it
average.

So we can conclude that majority of the people are satisfied with the existing system of
Performance Appraisal in the company.

73
Question No. – 4

Out of the respondents so interviewed indicates that 91% of the people agree that there is influence of
Performance Appraisal system over the efficiency & career growth of the workers on which 19%
of people strongly agree to it and 9 % of the people disagree with the question.

So it can be concluded that majority of people believe that the existing Performance Appraisal
system does influence the efficiency & career growth of the workers.

74
Question No. – 5

Out of the respondents so interviewed indicates that 50% of persons have responded that training
imparted to them in past does have an effect on their performance and 28 % of people believe that
training imparted to them does not have any effects on their performance where as 22% of respondents do
not want to give any comments.

So it can be concluded that training imparted to people in past do effects their performance.

75
Question No. – 6

Out of the respondents so interviewed indicates that about 36 % of the respondent indicates that
Perfomance Appraisal System bring out real training & development needs and 33 % said it does
not bring out real training & development needs where as 31 % do not want to give any
comments.

Hence it can conclude that Performance Appraisal do bring the real training & development.

76
Question No. – 7

Out of the respondents so interviewed indicates that 4 % of people gets only 1 promotion in their
tenure of service, 25 % of people gets 2 promotions in their tenure, 32 % of people gets 3
promotions in their tenure and only 39 % of people gets 4 or more promotions in their tenure of
service.

So it can be concluded that period to remain in a particular post is too long or rather promotion
occurs after a long time. Promotion in C.C.L occurs in a fixed interval of period.

77
Question No. – 8

Out of the respondents so interviewed indicates that 22 % of the people agrees that there is an
alternative way to compensate them if promotion has not been given to them where as 64 % of
people don’t agree to it and 14 % of persons is indifferent to such thing as they gives no
comment to it.

So we can conclude that the alternative way to compensate the employees if promotion is not
provided to them is very less.

78
Question No. – 9

Out of the respondents so interviewed indicates that 67 % of people agree that Performance
Appraisal system helps in taking right decision regarding promotion on which 11 % are strongly
agree while 33 % disagree with the question raised.

So we can conclude that Performance Appraisal system do helps in taking right decision
regarding promotion.

79
Question No. – 10

Out of the respondents so interviewed indicates, 70 % of people believe that there is a system of
Service Linked Upgradation in the organization and 8 % of people don’t agree to it where as 22
% people gives no comment to it.

So we can conclude that there is a system of SLU in the organization which is the way to
compensate the people when promotion is not given to them due to some circumstances.

80
Question No. – 11

Out of the respondents so interviewed indicates that 70 % of people believe that their
relationship with the superior, peers & subordinates affects the performance and 19 % of people
are strongly agree 11 % of the people are disagree with such a relationship on which 3 % are
strongly disagree

So we can conclude that the relationship of people with their superiors, peers & subordinates do
effect their performance.

81
Question No. – 12

Out of the respondents so interviewed indicates that 78 % of respondents agree that discussion of
the tasks do take place with their superior and 8 % of people does not agree to it where as 14% of
peopledo not want to give any comments.

So we can conclude that discussion of the task takes place to the people by their seniors.

82
Question No. – 13

Out of the respondents so interviewed indicates that only 42 % of people agree that performance
imbalance is communicated to them satisfactorily and 36 % of respondents does not agree to it
where as 22 % of people do not want to give aany comments.

So we can conclude that performance imbalance is communicated to the employees satisfactorily

83
Question No. – 14

Out of the respondents so interviewed indicates that 42 % of respondents strongly agreed that
promotion provide motivation to the employee and 33 % of people only agreed to it where as 25
% of respondents disagreed to it.

So we can conclude that promotion provide motivation to employees in C.C.L.

84
Question No. – 15

Out of the respondents so interviewed indicates that 70 % of people wants to have an open
performance appraisal system in the organization and 30 % of people as 22% of people are
indifferent so they gives no comment.

So we can conclude that employee wants to have an open appraisal system in the organization in
spite of the prevailing system in the organization.

85
Question No. – 16

Out of the respondents so interviewed indicates that 5 % of the people said that time fixed for

Performance Appraisal is 3 months and 6 % of the perople said it is 4 months and 17 % of them

said it is 6 months where as 72 % of the people said it is 12 months.

So we can conclude that majority of the people said that time fixed for Performance Appraisal is

12 months.

86
Question No. – 17

Out of the respondents so interviewed indicates that 39 % of the respondent agree that the current
Performance Appraisal System is transparent and 22 % said it is not transparent whereas 39 % do
not want to give any comments

So it can be concluded that the current Performance Appraisal System in C.C.L is not transparent

87
Question No. – 18

Out of the respondents so interviewed indicates that 39 % of the respondent agree that present
Performance Appraisal System rates their efficiency effectively and 28 % said they do not agree
that Performance Appraisal System rates their efficiency effectively where as 33 % do not want
to give any comments.

So it may be concluded that the present Performance Appraisal System rates their efficiency
effectively.

88
Question No. – 19

Out of the respondents so interviewed indicates that 55 % of the respondent agree that the
quantity of work gets reflected in their Performance Appraisal and 28 % said it is not reflected
where as 17 % do not want to give any comments in the matter.

So it can be calculated that quantity of work get reflected in their Performance Appraisal.

89
Question No. – 20

Out of the respondents so interviewed indicates that 61 % of the respondent agree that
Performance Appraisal System dependent upon quality of work and 14 % said it is
not dependent upon quality of work where as 25 % expressed their
ignorance.

So it can conclude that majority of the respondent agree that Performance

Appraisal System dependent upon quality of work
90
 FINDINGS

India is a third largest country in the production of coal. Coal India Limited is the main source in
the production of coal. Coal India limited is the second greatest employer after Railway.

C.C.L, having a vast repot ire of human resource, follow a well defined metrices to appraise
performance for both executive & non executive.

91
With the help of interview and discussion and on the basis of instrument of defined questionnaire
I found that the member of the C.C.L is aware of the method of Performance Appraisal and they
feel the need of this system in the Organization.

Performance Appraisal in the company is being at a regular interval of one year (12 months).
They feel that the system has its influence over the efficiency & career growth of the workers

Performance Appraisal of individual employee is sought for by the NEE department only when
the promotion of the concerned employee is under consideration. Otherwise the Performance
Appraisal of the worker concerned is kept with the HOD of the department where the worker is
posted.

Research reveals that there is general awareness regarding the Performance Appraisal process in
the organization.

The Performance Appraisal in the company is probably a confidential one where there is no
interaction of the superior with the subordinate at the time of assessment of performance.
However instances have been seen that the Performance Appraisal is made in front of the worker
but even then the strength and weaknesses of the worker has not been conveyed to him.

The study of “Performance Appraisal system” at C.C.L. has given me an opportunity to have
closer look at the different imperatives of the appraisal system as an important domain of HR
delivery.

After studying the different factors that affects variably the performance, I would like to give
certain suggestions herewith, which further can be added on the agenda of HR initiatives at
C.C.L.

SUGGESTION

1. Features and tools of Performance Appraisal system should be changed so that the
subjectivity is reduced and an individual bias that may impact the effectiveness of
performance management system is inactivated.

2. System should be redesigned for objectivity, transparency and consistency across C.C.L.

92
 3. Management by objectives (MBO) should also be applied. It is the modern and advanced
method of appraisal. MBO is potentially a powerful philosophy of managing and an
effective way for operationalizing the evaluator process. It seeks to minimize external
controls and maximize internal motivation through goal setting between the superior and
subordinates and increases the subordinate control over their own work.

4. The self appraisal form should have open-ended approach to get the true picture of
individual’s competence level (strength and weakness). The employee should not hesitate
in giving their weakness.

5. The process of 360-degree appraisal should be applied to make the system more
transparent.

6. The review should be done quarterly and specifically focused on feedback and coaching
and hence should require the appraisee and the appraiser to have formal feedback session.
This will further help the appraiser in both obtaining information and providing inputs on
how an appraisee is performing and whether or not he /she is headed in the right
direction. It will be an opportunity for the appraisee to get resources and help that may be
required for enhancing his/her own performance.

7. Personal interview can be introduced in Performance Appraisal system for promotion in

C.C.L.

8. Apart from assigned jobs which are very difficult to quantify, a system needs to be
involved which is imperative.

Conclusion

The study on Performance Appraisal at CCL has given me opportunity to have a closer look at
the imperatives of the performance Appraisal System as a domain of HR delivery.

93
It has enhanced my knowledge as how an organization work and operates to perform its
operations effectively and efficiently. The project has not only helped me to have close insight
into the practical implication of business process but also the performance appraisal is done.

While going through the different process followed at CCL within performance Appraisal, I
came to know of the importance of performance appraisal. This opportunity to work as
researcher has helped me understanding the theoretical and practical aspects of management.

The summer project, also made me realize the importance of HR as a fascinating function in an
organization. I got to know of the importance of communication and interpersonal skill in getting
things done from others. In a nut shell, it was great learning for me as management student.

With the help of personal interview and discussion with the employee and on the basis of
instrument of defined questionnaire I reached on the following conclusion.

1. According to respond given against the question no. 1, 2, 3, it can conclude that majority
of the respondent are know about the Performance Appraisal System and they feel its
need in the organization, they rated it good. It means that Performance Appraisal System
is satisfactory in the organization.

2. According to respond given against the question no. 4, 5, 6, 9 and 14 it can conclude that
Performance Appraisal System affected the workers in many respect. They affect the
efficiency & career growth of the workers. It brings out training 7 development needs of
the workers. It means it provide motivation to workers and helps in taking the right
decision.

3. According to respond given against the question no. 11,12,13,15 and 17, the relationship
of the workers with superior, peers and subordinate is good. Any task assigned to workers
is communicated to them. Thus it can be concluded that open and transparent
Performance Appraisal System is prevailing in the organization and their relationship is
satisfactorily.

4. According to respond given against the question no.7, 8 and 10, it can conclude that
majority of the respondent get promotion in their service period. If they do not get any
promotion, they are compensated by other means like SLU/SLI. It means ,workers are
satisfied with the Performance Appraisal System in the organization.
94
5. Annual Performance Appraisal System is prevailing in the organization

6. According to respond given against the question no.18,19 and 20, it can be concluded
that Performance Appraisal System dependent upon quantity and quality of work.It
means it rate the efficiency of the workers effectively.

Questionnaire
For Study
On
PERFORMANCE APPRAISAL SYSTEM
AT
95
 CENTRAL COALFIELDS LIMITED
DARBHANGA HOUSE, RANCHI (HEAD QUARTER)

Submitted By:-
Kirti Priya Anand
Roll No. –
(Master in Personnel Management)
2008 -09

NEVILLE WADIA INSTITUTE OF MANAGEMENT

STUDIES & RESEARCH
PUNE UNIVERSITY , PUNE

Questionnaire

All the information will be kept confidential.

Personal Data
1. Department: …………………………………………………..

2. Designation: ………………………………………………….

3. Grade: …………………………………………………………
96
 4. Tenure of service in company: ………………………………..

5. Tenure of grade in present position: …………………………..

6. Gender: ………………………………………………………..

7. Age: ……………………………………………………………

1. Are you aware of method which is followed for your Performance Appraisal in this
organization?

a)Yes b)No c)Do not know

2. Do you agree to the need of Performance Appraisal system in any organization?

a)Strongly Agree b)Agree c)Disagree d)Srongly Disagree

3. How do you rate the Performance rating system prevailing in C.C.L?

a)Excellent b)Very Good c)good d)Average

4. Does performance appraisal system has its influence over the efficiency & career growth of

workers?

a)Strongly Agree b)Agree c)Disagree d)Strongly Disagree

5. Does training imparted to you in the past has effect on your performance?

a)yes b)No c)No Comment

6. Does the current system of Performance Appraisal bring out the real training & development
needs?

a)yes b)No c)No Comment

7. How many promotion do you get in your tenure of service in this organization?

a)1 b)2 c)3 d)4

8. Is there any way to compensate you if promotion has not been given to you?

a)Yes b)No c)No comment

9. Does performance Appraisal system helps in taking the right decision regarding the
promotion?

a)Strongly Agree b)Agree c)Disagree d)Strongly Disagree

97
10. Whether there is a system of SLU(service linked upgradation)/SLI(service linked
increment)?

a)yes b)No c)No comment

11. Does your relationship with superior, peers and subordinates affect your performance?

a) Strongly Agree b)Agree c)Disagree d)Strongly Disagree

12. Do discussion on the task assigned to you take place with your superior?

a)Yes b)No c)No comment

13. Whether performance imbalance communicated to you satisfactorily?

a)Yes b)No c)No comment

14. Do you agree that promotion provide motivation to you?

a)Strongly Agree b)Agree c)Disagree d)Strongly Disagree

15. Do you want open Performance Appraisal System in place of the present prevailing system?

a)Yes b)No c)No comment

16. What is the time fixed for your Performance Appraisal?

a)3 months b)4 months c)6 months d)12 months

17. Is current Performance Appraisal System is transparent?

a) Yes b)No c)No comment

18. Is the present Performance Appraisal System rates your efficiency effectively?

a)Yes b)No c)No comment

19. Does quantity of work gets reflected in your Performance Appraisal?

a)Yes b)No c)No comment

20. Is the Performance Appraisal System dependent upon quality of work?

a)Yes b)No c)No comment

21. Any suggestion for the improvement of appraisal system at CCL ? Please prioritize them in
order?

a)………………………………………………………………………………………….

b)…………………………………………………………………………………………

c)………………………………………………………………………………………….
98
 BIBLIOGRAPHY

• Armstrong, M (1991) A Handbook of personnel management practice, fourth edition,

London, Kogon

• Aswathapa, K. (2008) human Resource Management, fifth edition, new Delhi, Tata
McGraw-Hill publishing co.ltd.,

• Haynes, E. Marion, (1992) Managing Performance, New Delhi, Galgotia Publications(p)

ltd.

• Jain C.Sugan (2002) Performance Appraisal, Jaipur, Raj Publishing House

99
• http://WWW.Performance_appraisal.com

• http://en.wikipedia.org/wiki/performance_appraisal

• http://www.business-marketing.com/store/appraisals.html

• http://www.businessballs.com/performanceappraisals.html

100