A PROJECT REPORT ON

PERFORMANCE APPRAISAL OF
EMPLOYEES OF O.M.C.

Submitted by
RUTUPARNA SAMANTARAY
Regd. No- 520754705

FOR THE PARTIAL FULFILMENT OF AWARD OF

DEGREE OF MBA TO SIKKIM MANIPAL UNIVERSITY

Under the guidance of

Assoc. Prof. Saurav Kumar Dalabehera,
H.O.D Department of Business Administration
GyanaBharati

SIKKIM MANIPAL UNIVERSITY OF HEALTH MEDICAL

AND TECHNOLOGICAL SCIENCES
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1|Page

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CERTIFICATE
This is to certify that the report entitled Performance Appraisal of
Employees of OMC. In partial fulfillment of the requirements for the
degree of Master of Business Administration (MBA) of Sikkim Manipal
University of Health Medical and Technological Sciences. Miss Rutuparna
has worked under my supervision and guidance and that no part of this
report has been submitted for the award of any other similar titles of
prices and then may has not been published in any journal or magazine.

Certified

Assoc. Prof. Saurav Kumar

Dalabehera
MBA-HR

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EXAMINERS CERTIFICATE

The Project Report

Of
Miss Rutuparna Samantaray
Entitled
PERFORMANCE APPRAISAL OF EMPLOYEES OF OMC
Is approved and is acceptable in quality and form.

Internal Examiner
Name- Saurav Kumar Dalabehera
Qualification- MBA (HR)
Designation- Internal Guide

External examiner
Name- Swati Sibani
Qualification- MBA (HR & MKT.)
Designation- External Guide

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ACKNOWLEDGEMENT

I would like to express my sincere thanks and gratitude to

ASSOC. Prof. Saurav Ku. Dalabehera H.O.D, Department of
Business Administration, Gyanabharati for sparing his valuable time
from his hectic schedule whenever required and providing me important
inputs. I owe him a great deal for the successful completion of this
project.

With due respect, I would like to express my sincere

gratitude and Indebtedness to Mr. P. S. Kanungo, Sr. Manager (LW), Sri
G. C. Bisoi, Asst. Manager (LW), and Mr. S.N. Nandi, AM (HRM)OMC Ltd.,
for rendering invaluable advice and absolute guidance in the completion
of this Project.
I wish to acknowledge my indebtedness to Mr. P.S. Kanungo,
Sr. Manager (LW) OMC, Bhubaneswar for their wholehearted cooperation
and kind approval of this topic for undertaking the project in his
organization.

I take this opportunity to thanks him for his invaluable

guidance and assistance without whose, this project would have been a
total failure. He has helped me though his timely and valuable suggestion
to make this project report a grand success

Rutuparna Samantaray
MBA (4th SEM)
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DECLARATION

I do hereby solemnly declare that this Project Report entitled

PERFORMANCE APPRAISAL OF EMPLOYEES OF O.M.C. is one of
my own an original creation. I also declare that this Project report has
not been previously submitted by any one for the award of any degree or
diploma to any other Institute or organization. I have submitted this
Project in partial fulfillment of the requirement of Master in Business
Administration.

Bhubaneswar
Date:

Rutuparna Samantaray
MBA (4TH SEM)

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CONTENTS
1.

INTRODUCTION

2.

INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

3.

AIM AND OBJECTIVES OF THE PROJECT

4.

RESEARCH

5.

ORGANIZATION PROFILE

6.

METHODOLOGY

MAINBODY OF THE PROJECT

7.

LIMITATION

8.

DATA

9.

SUGGESTION AND RECOMMENDATION

10.

CONCLUSION

11.

OF THE PROJECT

INTERPRETATION AND FINDINGS

BIBLIOGRAPHY

12.

ANNEXURE

13.

QUESTIONNAIRE

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INTRODUCTION
Performance refers to the degree of accomplishment of the tasks that
how employees do the jobs. It indicates how well an individual is fulfilling
the job requirements. It is always measured in terms of results.
Performance means outcomes achieved at work, the actual contribution
of an individual or team to the organizations strategic goals, like
stakeholder

satisfaction,

clean

image

and

economic

sustainability.

Campbell, believe that performance a behaviour should be distinguished

from its outcomes which can be facilitated or hindered by systematic
factors. Brunbach views performance more e comprehensively by
encompassing both behaviours and results. He considers behaviours as
outcomes in their own right, which can be judged apart from results. The
role of any person can be seen in three parts: Being, Doing, Relating.

Being concerns the competencies of a person that are relevant to

his/her performance. Louis Pasteur, said chance favours the prepared
mind. For most of all, being means that the persons has prepared his/her
mind.

Doing focuses on the persons activities that are variable effective at

different levels in the organization that affect performance of other roles
dependent on the person, output and the organizational performance as
a whole. As someone said, Ideals are funny little things. They wont work
unless you do.

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Relating emphasizes the nature of relationship with members of the role

network vertical, horizontal o otherwise.

Performance is about optimally analyzing ones potential where as a

persons potential for a role is an input to the productive process and
his /her performance is the output of the very same process. Improving
performance is thus about identifying alternate ways of realizing
potentials better.

Organizations goals can be achieved only when people put in their best
efforts. How to ascertain whether an employee has shown his to her best
performance on a given job? The answer is performance appraisal.
Employee

assessment is one of the fundamental jobs of Human

Resource Management but not an easy job.

In simple terms, performance appraisal maybe understood as the

assessment of an individuals performance in a systematic way, the
performance being measured against such factors as job knowledge
quality and quantity of output, initiative, leadership abilities, supervision,
dependability, cooperation, judgment, versatility, health and the like
potentials of the employee for future performance must also be
assessed.

Performance appraisal is a process that involves determining and

communication to an employee how he or she is performing the job and
ideally, establishing a plan of improvement. It is otherwise known as
performance

rating,

employee

assessment,

employee

performance
9|Page

review personal appraisal, merit rating etc. It is linked to job analysis.

Job

analysis

states

out

requirements,

which

are

translated

into

performance standards, which in turn form the basis for performance

appraisal.

OBJECTIVES OF THE STUDY:

The first and foremost objective of this study is the partial fulfillment of
the masters degree in Business Administration.
The prima-facie objective of this study is to have knowledge relating to
the functions of organization in general and practical experience relating
to performance appraisal practical in particular. However, there are
certain other objectives which are exhibited below.

To critically access the appropriateness of the existing appraisal

system and to examine its strength and weakness.
To assess the relative contribution of the appraisal system in the
accomplishment of the organizational goal.
To know the present appraisal practice adopted in the organization.
To examine the necessities for changes in the existing pattern of
performance appraisal.
To recommended necessary changes or modification for making the
appraisal system more objective.

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SCOPE OF THE STUDY

The present study of performance Appraisal System was conducted in
Orissa Mining Corporation, Corporate Office, Bhubaneswar. I is a public
sector undertaking. The study includes the executives and the nonexecutives of department of the organization.

STUDY METHDOLOGY
A methodology is basically system or rules, principles, and procedures
which direct a researcher to go for scientific investigation. While
understanding the project work I have been able to collect the required
data and information from both the primary source and the secondary
source. The primary source of collection of data was through structured
questionnaire by simple random sampling from the employees of OMC.
The secondary sources of collecting the data were the various booklets,
brochure, annual reports, newsletter etc. of OMC.
PLAN OF STUDY
A systematic approach to the whole study is very much essential to make
the study a perfect one. Plan of the study provides me the directions so
that I can reach my destination.

The 1st chapter which is an introductory one includes objectives of study,

scope of study, study methodology, plan of study and limitations of the
study.

The 2nd chapter deals with the history and background of the organization
understudy. It gives a brief idea about the whole organization, its
manpower, production, organizational structure etc.
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The 3rd chapter discusses the board theoretical framework of the study. It
deals with the performance and appraisal system, its objectives, strength
and weakness of the system and potential appraisal.

The 4th chapter deals with the performance appraisal system in practice
at OMC Corporate Office, Bhubaneswar.

The 5th Chapter is the most vital one in which researcher analysis and
interpret the data collect about the existing appraisal system of OMC.

The last chapter (i.e. the 6th chapter) is the researchers own perception
about the system and deals with conclusion and some suggestions to
make the system more objective.

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LIMITATIONS
I have faced/experienced certain difficulties while conducting the study.
These limitations of the study are as follows.

1. The

performance

appraisal

data

are

confidential

for

the

organization. So, the officials of OMC are hesitant to give

information about the performance Appraisal System of their
organization.
2. The busy schedule of the executives was also an obstacle in the
collection of the required information in time.
3. The respondents are not fully disclosing their feelings because of
the fear of being exposed to the authority or thought the
researcher to be an outsider.
4. The entire study was conducted single handed by the researcher in
a stipulated time period It was not possible to cover a large sample
from each department within such a limited time period.

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The Orissa Mining Corporation Limited (OMC) was jointly established

by the Union and State Governments in 1956. It was the first Public
sector undertaking in the mining sector in India. By 1962, OMC became
wholly state owned.
Today, OMC is profitably operating numerous mines all over the
state, meeting the requirements of metallurgical and Chemical Industries
in India and abroad. The trust is on value addition as well as increasing
mining capacities to meet growing demands. Orissa. Truly, is a vast
treasure trove of mineral resources. The star has about 98% of the
chromate, 71% of the bauxite, 33% of the iron and 32% of the
manganese resources on India.
OMCs geology division, though sustained, exploration has been
steady adding to the corporations minerals assets, OMC possesses a
reserve 400 million tones of Iron ore, 19 MT. of manganese ore, 28mt of
Chromite, 720 m. of bauxite, 19 MT. of manganese ore 28 MT. of
Chromite, 720m.of bauxite, 19 MT. of limestone and other minerals.
OMCs impressive growth over decades is hinged on its philosophy and
commitment towards quality and value addition. The corporations
turnover has increased manifold over the decades through optimum
utilization of its resources. Progressive mechanization and modernization
of mining operation with due environment care have paid rich dividends.
OMC has other rich deposits and mines of iron ore suitable for
sponge iron production. Such iron ore is supplied to the sponge iron
plants in the country. The Daitari iron ore mine is the flagship of OMCs
operations. The mine is fully mechanized with an ore handling plant
compromising a crushing plants and a washing plant connected by a 3.8
mm. long convey belt. Of late it has gone ahead with two shift operation
14 | P a g e

and one shift maintenance operation which is expected to produce 2

million tones of washed as well as dry screened calibrated iron ore and
fines OMC has also entered into a tie-up with Neelachal Ispat Nigam of
supply of iron ore.

OMC has developed manganese ore mines to cater to the needs of steel
plants, ferromanganese plants, engineering and chemicals industries in
the country.

Most of this is being exported though Paradeep Port to different countries

including China and Japan.

The chromites Mine at Kallapani, Sukarngi and Bngur make OMC the
leading chromites producer of the country. Chrome ore varying up to
very high grade is produced here. A major part of produce is exported to
different countries including China and Japan.

OMC is operating on lease in Kalahandi district for semi precious stone

under joint venture with GEMCO.

There are some impure limestone bands Umpavally lease in Koraput

district having no industrial use. OMC has take steps to utilize such
materials to produce slab ad tiles as a replacement to marble. OMC also
owns few quarries for coloured and black varieties of dimension stone in
the state. Blocks are being produced form three-quarry lease.

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OMC has diversified its business to local mining. Govt. of India has
allotted Utkal D in Talcher coal field to supply coal for power generation.
Dedicated

to the

cause of exploration,

exploration and business

transaction of minerals and mining products, OMCs efforts have earned

rich dividends. The corporation has special Export Award for 1999-2000
by CAPEXIL.
Besides its activities, OMC has also ensured that its family of 6000
workers, engineers, geologist and professional managers are happy and
committed towards multiplying the growth of the corporation. On account
of the numerous welfare activities, community development and other
benefits, OMCs employee package in the state.

The new liberalization policy of Government pf India in the mining sector

has opened the doors for foreign investors in Orissa , reputed foreign
firms and global mining gains like Rio Tinto of U.K. and continental
Resources limited of Canada, have entered into joint venture agreement
with OMC and the projects are under progress. This will also lead to the
development of infrastructure in the state and open new ristas or for the
corporation in the International arena.

The skilled manpower on scientific business have been adding to the

cooperations productivity. Reputed to reign firms and global mining
giants have entered into joint ventures with OMC. With

enterprise

resource planning and ISO 9001:2000 certification OMC is on the higher

global challenges and competition.

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CORPORATE PLAN
OMC has crafted its own corporate plan for becoming internationally
competitive in the mining sector. This will help the organization in
managing changes without bring swept away has gained importance n
the liberalized scenario. OMC has prepared a vision documents for next
10 to 20 years. This vision documents is a long term action plan based
on geological exploration and mining plans. IN the highly volatile
minerals market OMC has to consolidate its positions to sustain itself to
face the challenge and competition. The vision for the coming year to
enable OMC to prepare its manpower to cope up with the increasing
challenges.
OMC is reorganizing is management its management and operations to
combat professionally managed global rivals. Few departments such as
corporate communication have been open to plan and manage corporate
affairs. It has delegate lots of financial and administrative power to its.
Regional heads to speed up decision making.

During current year a number of welfare measures are taken up for

peripheral development/scholarship scheme, incentive to workers and
employee and development in the mines ad camp as apart of labour
welfare has also being augmented. Cable Television connected to the
workers and employees, childrens part to every reign, computer training
to all executives and non-executives are some of the important welfare
measures being undertaken. A welfare committee has been formed which
visits different mines /reign to fit workers and suggest for their weal and
woe.

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MINES
OMC possesses a reserve of 400 million tones iron ore, 19 million tons of
manganese or, 28 million tons of chromites, 220 million tones bauxite,
19 million tons of limestone and other minerals. South kallapani,
Kaliapani, Sukrangi and underground mines Bangur make OMC the
leading Chromite producer of the country producing high grade lumpy
and friable variety.

ORE HANDLING PLANT

The Daitari iron Ore Project of OMCs operations it is fully mechanized
with two shift operation and one shift maintenance. Daitari is expected to
produce 3 million tones of washed as well as dry screened calibrated iron
ore and fines. The Daitari plant principally feeds Neelachal Ispat Nigam
i.e. second steel plant of Orissa for supply of iron ore.

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BENEFACTION PLANT
The 100% export oriented chrome ore benefaction plant (COBP) at
Kaliapani has been substantial contributing to OMC exchequer with 100%
capacity utilization. The plant has recorded a production of 1 million
tones chrome concentrate since commissioning in 1995. This has been
possible due to addition of a new hydro cyclone and modification of plant.

PRODUCTS
1. Chromite
2. Bauxite
3. Iron
4. Manganese
5. Limestone
6. Gemstone
7. Coal

EXPORTS
OMC continues to maintain Orissas Global connection through export of
minerals from Paradeep Port. In recognition of this superb export
performance, OMC has bagged the CAPEXIL Export Award every year in a
row since 1998-99 up to 2003-2004 with its full proof export network,
OMC is in a position to handle direct export of iron ore, chrome ore and
chrome concentrate produced from its mines and COB plant.

QUALITY POLICY
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OMC is engaged in exploration, mining and supply of minerals for value

addition. Quality is our core business philosophy for meeting the needs of
our valued costumes by enhancing their satisfaction and for fulfilling our
social obligations. In order to achieve the above OMC is developing its
human resource, besides maximizing operational efficiency, capacity
utilization and productivity.

They periodically review their quality policy and objective for its
continuing suitable and continuity improve the effectiveness of the
quality management system.

PERIPHERAL DEVELOPMENT
Keeping in tune with its public sector image OMC spend a substantial
amount in shape of grant to various Institutions located the surrounding
villages of its mines for construction of school/college buildings,
laboratory, library etc. besides various development works like digging of
tubes well renovation of funds, construction and repair of villages roads
and plantation etc. have also been taken in the peripheral development
work. During financial year, 1999-2000. OMC has donated Rs. 12.00 lakh
to different educational institutions for construction of school/college
buildings. OMC is spending a substantial amount to encourage the family
planning oration in the tribal areas as it is national program. OMC has
taken up massive plantation program and development of roads
providing street light in the nearby villages.

LIST OF MINES AND MINERALS

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CHROME ZONE
1.South Kaliapani
2. Kaliapani
3. Sukarangi
4. Kalarangi
5. Base of Mahangiri
6. Sarubil Sukarangi

7. Kathpal
8. Birasi
9. Bangur
10.Baniapank

MANGNESE
1. Dubna
2. Roida-78
3. Nishikhal
4. Parlipada
IRON
1. Daitari
2. Gandhamardan A
3. Banaspani
4. Khandbandh
5. Khandbandh
6. Sakradihi
7. Tringpahar
8. Baldapalsa
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9. Rantha
10.s Koira-Kasira
IRON AND MANGANESE
1. Kohla - Roida
2. Kurmitar
3. Dalki
4. S.G.B.K.
5. Serenda- Bhadrasahi

LIME STONE
Umpavalley
Dumuria
Graphite
Nishikhalo
Gemstone
Jilingadhar

MILESTONES OF OMC

OMC gets 3-STAR EXPORT HOUSES STATUS on 7 th

March, 06

OMC receive CAPEXIL Export Award in a row from

1998-99 to 2004-05

Highest turn over posted in the history of OMC

Highest profit before tax in the OMC Annuals

Corporation becomes debt free in 2003-2004

New sections opened

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Corporate

planning

and

New

business

development
-

Corporate Communication

Human Resource Development

Computerized Inventory Management system taken up

for all

stores

Several non-working mines made operational

OMC website hosted and regularly updated.
Good Industrial relations and better co-ordination with
various

authority is like railways,

port, forest, District Administration etc.

June-July 05 OMC celebrates 50th Foundation day.

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INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

The role of human resource management in organizations has been
evolving dramatically in recent times. The days of personnel Department
performing clerical duties such as record keeping, paper pushing and file
maintenance are over. HR is increasingly receiving attention as a critical
strategic

partner,

assuming

stunningly

different

for

reaching

transformational roles and responsibilities. Taking the strategic approach

to human resource management involves making the function of
managing human assets the most important priority in the organizations
and Integrating all human resource policies and programmes the frame
work of a company strategy This chapter will discuss how the effective
utilization

human

resource

can

assist

organization

in

achieving

competitive advantage.

Importance of HRM
People have always been central to organizations but their strategic
importance is growing tin todays knowledge based Industries. An
organizations success increasingly depends on the knowledge, skills and
abilities of employees, particularly as they help establish a set of core
competencies that distinguish an organization from its competitors that
distinguish an organization from its competitors with appropriate HR
policies and practices an organization can hire, develop and utilize best
brains in the market place, realize its processed goals and deliver results
better than others.
Human Resource Management helps an organization and its people to
realize their respective goals thus
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1.

At

the enterprise level:

Good human resource practices can help in attracting and

retaining the best people in the organization. Planning alerts the
company and the types of people it need in the short medium
and long run.

It helps in training people for challenging roles , developing right

attitude towards the job and the company, promoting team sprit
among employees and developing loyalty and commitment
through appropriate reward schemes.
2. At

the individual level :

It offers excellent growth opportunities to people who have

the potential to rise.
It allows people to work with diligence commitment.
3. At

the society

level:

Society as a whole is the major beneficiary of good human

resource practices
Employment opportunities multiply
Scares talents are put to best use.
Companies that pay and teat people always race a head of
others and deliver excellent results
4.

At the national level:

Effective use of human resources helps in exploitation of
natural, physical and financial resources in a better way.

25 | P a g e

 People with right skills proper attitude and appropriate

values help the nation to get a head and compete with the
best in the world leading to better standard of living and
better employment.

Meaning of Human Resource Management:

Organization in the combination of both Human and Nonhuman resources where duties and responsibilities are being
allotted by higher authorities. Human resource management
means employing people, developing their resources, utilizing,
maintaining and compensation their services in tune with the
job

and

organizational

management

is

the

recruitment.

management

of

Human

resource

employees

skills,

knowledge, abilities, talents, aptitudes, creative abilities etc.

Employee in human resource management is treated not only
as economic man but also as social and psychological man.
Thus, the complete man is viewed under this approach.
Employees are treated as profit centre and therefore, invest
capitals for human resource development.

Human Resource Management relate to the function of managing people

from lower level to upper level of the organization. Since every
organization is made up of people, acquiring their services, developing
their skills, motivating them to higher levels of performance and ensuring
that they continue to maintain their commitment to the organization are
essential to achieving organizational objectives. Those organizations that
are able to acquire, develop, stimulate and keep outstanding workers will
26 | P a g e

be both effective and efficient. Those organizations that are effective or

inefficient risk the hazards of stagnating or going out of business. Human
Resource thus, creates organization and makes them survive and
prosper. Some managers say that people are the most important assets
of the organization. Human assets are virtual never shaver in the balance
sheet as distinct category where a great of money is involved in the
recruiting, selecting and training of people.

Functions of Human Resource Management:

The functions of HRM are classified into tow categories:
1. Managerial Function
2. Operating Function
1. Managerial Function
Managerial

function

involves

planning

organizing,

directing

and

controlling. Recruitment, selection, promotion comes under the most

vital managerial function staffing. We can say staffing means filling and
keeping filled position of the organization structure. Recruitment,
selection, promotion has been regarded as the most important function
of personnel administration as well as for the organization because
unless right people are lined the prospect development of an organization
may hamper.
a. Planning
It is a pre-determined course of action planning involves planning of
human resources, requirement, recruitment, selection, training, etc.
27 | P a g e

b. Organizing
Organisation is a means to an end. It is essential to carry out the
determined course of action. An organisation is a Structure and a
process by which co-operative group of human beings allocated its task
among its members, identifies relationships and integrates its activities
towards common goal.
c. Directing
Directing

is

the

execution

of

the

plan.

Directing

is

motivating,

commanding, leading and activating people.

d. Controlling
It involves checking, verifying and comparing of the actual with the
plans, identification of deviations if any and correcting of identified
deviation.
2. Operational Function
a. Employment
Employment is concerned with securing and employing the people
possessing required kind and level of human resources necessary to
achieve the organizational objectives. The operational function covers the
functions such as job analysis, human resource planning, recruitment,
selection, placement, induction and internal mobility.
b. Human Resource Development
It is process of improving and changing the skills, knowledge, attitude,
commitment etc based on present and future job and organizational
28 | P a g e

requirements.

It

includes

performance

appraisal,

training,

career

planning and development, etc.

c. Compensation
It is the process of providing adequate, equitable and fair remuneration
to

the

employees.

It

includes

job

evaluation,

wage

and

salary

administration, incentive, bonus, fringe benefits, etc.

d. Human Relations
Human relation is an area of management in integrating people into work
situation in a way that motivates them to work together productively, cooperatively and with economic, psychological and social satisfaction.
Once the required number and of human resources are determined, the
management has to find the places where required human resource will
be available to and also find the means of attracting them towards the
organisation

before

selecting

suitable

candidate

from

outside

organisation. Recruitment is only one step in the entire employment

process.

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AIMS AND OBJECTIVES OF THE PROJECT

Employees are the backbone of any organisation. The success
of

an

organization

depends

upon

the

commitment

of

the

employees. Therefore, a project is undertaken with the objective

of finding out of the factors that has influenced the employees
performance appraisal plays a vital role in any organization. So
the aim and objective to study are:

To analyze the performance appraisal system and give

suitable suggestions, if required.

To find the satisfaction level of the employees as well as

Executives.

To take feedback on the appraisal method as Usha Martin

Ltd.

30 | P a g e

RESEARCH METHODOLOGY:
Meaning and Definition of Research
Research simply means a search for facts - answers to questions and
solutions to problems. It is a purposive investigation. It is an organized
inquiry. It seeks to find explanations to unexplained phenomenon to
clarify the doubtful facts and to correct the misconceived facts.
The search for facts may be made through either:

Arbitrary (or unscientific) Method: It's a method of seeking

answers to question consists of imagination, opinion, blind belief or
impression. E.g. it was believed that the shape of the earth was flat;
a big snake swallows sun or moon causing solar or lunar eclipse. It is
subjective; the finding will vary from person to person depending on

his impression or imagination. It is vague and inaccurate. Or

Scientific Method: this is a systematic rational approach to seeking
facts. It eliminates the drawbacks of the arbitrary method. It is
objective, precise and arrives at conclusions on the basis of verifiable
evidences.

Therefore, search of facts should be made by scientific method rather

than by arbitrary method. Then only we may get verifiable and accurate
facts. Hence research is a systematic and logical study of an issue or
problem or phenomenon through scientific method.
Young defines Research as a scientific undertaking which, by means of
logical and systematic techniques, aims to:
(a)
(b)

Discover of new facts or verify and test old facts,

Analyze
their
sequences,
interrelationships

and

causal

explanations,
31 | P a g e

(c)

Develop new scientific tools, concepts and theories which would

(d)

facilitate reliable and valid study of human behaviour.

Kerlinger defines research as a systematic, controlled, empirical
and critical investigation of hypothetical propositions about the
presumed relations among natural phenomena.

Objectives:
After studying this lesson the students should be able to understand:

Research and scientific method

Characteristics of Research
Purpose of research
Different types of Research
Research Approaches
Significance of research in Social and Business Sciences

Research and Scientific Method

Research is a scientific endeavour. It involves scientific method. The
scientific method is a systematic step-by-step procedure following the
logical processes of reasoning. Scientific method is a means for gaining
knowledge of the universe. It does not belong to any particular body of
knowledge; it is universal. It does not refer to a field of specific subject
of matter, but rather to a procedure or mode of investigation.
The scientific method is based on certain articles of faith. These are:

Reliance on Empirical Evidence: Truth is established on the basis

of evidence. Conclusion is admitted, only when it is based on
evidence. The answer to a question is not decided by intuition or
imagination. Relevant data are collected through observation or
experimentation. The validity and the reliability of data are checked
carefully and the data are analyzed thoroughly, using appropriate
methods of analysis.
32 | P a g e

Use of Relevant Concepts: We experience a vast number of facts

through our sense. Facts are things which actually exist. In order to
deal with them, we use concepts with specific meanings. They are
symbols representing the meaning that we hold. We use them in our
thinking

and

communication.

Otherwise,

clarity

and

correct

understanding cannot be achieved.

Commitment of Objectivity: Objectivity is the hallmark of the
scientific method. It means forming judgement upon facts unbiased
by personal impressions. The conclusion should not vary from person

to person. It should be the same for all persons.

Ethical Neutrality: Science does not pass normal judgment on
facts. It does not say that they are good or bad. According to
Schrodinger Science never imposes anything, science states.
Science aims at nothing but making true and adequate statements

about its object.

Generalization: In formulating a generalization, we should avoid
the danger of committing the particularistic fallacy, which arises
through an inclination to generalize on insufficient or incomplete and
unrelated data. This can be avoided by the accumulation of a large
body of data and by the employment of comparisons and control

groups.
Verifiability: The conclusions arrived at by a scientist should be
verifiable.

He must make known to others how he arrives at his

conclusions.

He

should

thus

expose

his

own

methods

and

conclusions to critical scrutiny. When his conclusion is tested by

others under the same conditions, then it is accepted as correct.

Logical reasoning process: The scientific method involves the
logical process of reasoning. This reasoning process is used for
drawing inference from the finding of a study or for arriving at
conclusion.

33 | P a g e

Characteristics of Research

It is a systematic and critical investigation into a phenomenon.

It is a purposive investigation aiming at describing, interpreting and

explaining a phenomenon.
It adopts scientific method.
It is objective and logical, applying possible test to validate the

measuring tools and the conclusions reached.

It is based upon observable experience or empirical evidence.
Research is directed towards finding answers to pertinent questions

and solutions to problems.

It emphasizes the development of generalization, principles or

theories.
The purpose of research is not only to arrive at an answer but also
to stand up the test of criticism.

Purpose of Research
The objectives or purposes of research are varied. They are:

Research extends knowledge of human beings, social life and

environment. The search is for answers for various types of
questions:

What,

Where,

When,

How

and

Why

of

various

phenomena, and enlighten us.

Research brings to light information that might never be discovered

fully during the ordinary course of life.

Research establishes generalizations

contributes to theory building in various fields of knowledge.

Research verifies and tests existing facts and theory and these help

improving our knowledge and ability to handle situations and events.

General laws developed through research may enable us to make

reliable predictions of events yet to happen.

Research aims to analyze inter-relationships between variables and

and

general

laws

and

to derive causal explanations: and thus enables us to have a better.

34 | P a g e

Applied research aims at finding solutions to problems... socioeconomic problems, health problems, human relations problems in

organizations and so on.

Research also aims at developing new tools, concepts and theories

for a better study of unknown phenomena.

Research aids planning and thus contributes

to

national

development.
Types of Research
Although any typology of research is inevitably arbitrary, Research may
be classified crudely according to its major intent or the methods.
According to the intent, research may be classified as:
Pure Research
It is undertaken for the sake of knowledge without any intention to apply
it in practice, e.g., Einstein's theory of relativity, Newton's contributions,
Galileo's contribution, etc. It is also known as basic or fundamental
research. It is undertaken out of intellectual curiosity or inquisitiveness.
It is not necessarily problem-oriented. It aims at extension of knowledge.
It may lead to either discovery of a new theory or refinement of an
existing theory. It lays foundation for applied research. It offers solutions
to many practical problems. It helps to find the critical factors in a
practical problem. It develops many alternative solutions and thus
enables us to choose the best solution.
Applied Research
It is carried on to find solution to a real-life problem requiring an action
or policy decision. It is thus problem-oriented and action-directed. It
seeks an immediate and practical result, e.g., marketing research carried
on for developing a news market or for studying the post-purchase
35 | P a g e

experience of customers. Though the immediate purpose of an applied

research is to find solutions to a practical problem, it may incidentally
contribute to the development of theoretical knowledge by leading to the
discovery of new facts or testing of theory or o conceptual clarity. It can
put theory to the test. It may aid in conceptual clarification. It may
integrate previously existing theories.
Exploratory Research
It is also known as formulative research. It is preliminary study of an
unfamiliar

problem

about

which

the

researcher

has

little

or

no

knowledge. It is ill-structured and much less focused on pre-determined

objectives. It usually takes the form of a pilot study. The purpose of this
research may be to generate new ideas, or to increase the researcher's
familiarity with the problem or to make a precise formulation of the
problem or to gather information for clarifying concepts or to determine
whether it is feasible to attempt the study. Katz conceptualizes two levels
of exploratory studies. At the first level is the discovery of the significant
variable in the situations; at the second, the discovery of relationships
between variables.
Descriptive Study
It is a fact-finding investigation with adequate interpretation. It is the
simplest type of research. It is more specific than an exploratory
research.

It

aims

at

identifying

the

various

characteristics

of

community or institution or problem under study and also aims at a

classification of the range of elements comprising the subject matter of
study. It contributes to the development of a young science and useful in
verifying focal concepts through empirical observation. It can highlight
important methodological aspects of data collection and interpretation.
The information obtained may be useful for prediction about areas of
36 | P a g e

social life outside the boundaries of the research. They are valuable in
providing facts needed for planning social action program.
Diagnostic Study
It is similar to descriptive study but with a different focus. It is directed
towards discovering what is happening, why it is happening and what can
be done about. It aims at identifying the causes of a problem and the
possible solutions for it. It may also be concerned with discovering and
testing whether certain variables are associated. This type of research
requires prior knowledge of the problem, its thorough formulation, clearcut definition of the given population, adequate methods for collecting
accurate information, precise measurement of variables, statistical
analysis and test of significance.
Evaluation Studies
It is a type of applied research. It is made for assessing the effectiveness
of social or economic programmes implemented or for assessing the
impact of developmental projects on the development of the project
area. It is thus directed to assess or appraise the quality and quantity of
an activity and its performance, and to specify its attributes and
conditions

required

for

its

success.

It

is

concerned

with

causal

relationships and is more actively guided by hypothesis. It is concerned

also with change over time.

Action Research
It is a type of evaluation study. It is a concurrent evaluation study of an
action programme launched for solving a problem for improving an
exiting situation. It includes six major steps: diagnosis, sharing of
diagnostic

information,

planning,

developing

change

programme,
37 | P a g e

initiation of organizational change, implementation of participation and

communication process, and post experimental evaluation.
According to the methods of study, research may be classified as:
1. Experimental Research: It is designed to asses the effects of
particular variables on a phenomenon by keeping the other variables
constant or controlled. It aims at determining whether and in what
manner variables are related to each other.
2. Analytical Study: It is a system of procedures and techniques of
analysis applied to quantitative data. It may consist of a system of
mathematical models or statistical techniques applicable to numerical
data. Hence it is also known as the Statistical Method, it aims at testing
hypothesis and specifying and interpreting relationships.
3. Historical Research: It is a study of past records and other
information sources with a view to reconstructing the origin and
development of an institution or a movement or a system and
discovering the trends in the past. It is descriptive in nature. It is a
difficult task; it must often depend upon inference and logical analysis or
recorded

data

and

indirect

evidences

rather

than

upon

direct

observation.
4. Survey: It is a fact-finding study. It is a method of research involving
collection of data directly from a population or a sample thereof at
particular

time.

Its

purpose

is

to

provide

information,

explain

phenomena, to make comparisons and concerned with cause and effect

relationships can be useful for making predications
Research Approaches
38 | P a g e

There are two main approaches to research, namely quantitative

approach and qualitative approach. The quantitative approach involves
the collection of quantitative data, which are put to rigorous quantitative
analysis in a formal and rigid manner. This approach further includes
experimental,

inferential

and

simulation

approaches

to

research.

Meanwhile, the qualitative approach uses the method of subjective

assessment of opinions, behaviour and attitudes. Research in a situation
is a function of the researcher's impressions and insights. The results
generated by this type of research are either in non-quantitative form or
in the form which cannot be put to rigorous quantitative analysis.
Usually, this approach uses techniques like depth interviews, focus group
interviews and projective techniques.

HUMAN RESOURCE PLANNING

MEANING OF HUMAN RESOURCE PLANNING :
Human Resource Planning determine the human resource needs
of the whole enterprise and its every department for a given
39 | P a g e

future period for the various operations envisaged in connection

with the accomplishment of the organizational objectives and
departmental
goals.
Human
resource
planning
is
the
predetermination of the future course of action chosen from a
number of alternative courses of action for procuring,
developing,
managing,
motivating,
compensating,
career
planning, succession planning and separating the human element
of enterprise. It determines a conscious choice of patterns of the
humanization of work environment in an organisation.

40 | P a g e

Definition of HR Planning: According to Geyser HR Planning is the process including

forecasting, developing and controlling by which a firm
ensures that it has the right number of people and the right
kind of people at the right places at the right time doing
work for which they are economically most useful.
According to Wendell French Human Resource Planning may be
defined as the process of assessing the organizations
human resources needs in the light of organizational goals
and making plans to ensure that a competent, stable work
force is employed.

Leon C Megginson is of the opinion that, human resource

planning is an integrated approach to performing the
planning aspects of the personnel function in order to have a
sufficient supply of adequately developed and motivated
people to perform the duties and tasks required to meet
organizational objectives and satisfy the individual needs and goals
of organizational members.
There are many ways to define HR planning, or explain what it is, but the
following definitions, taken from the Government of Canada human
resources site, is a good, useful working definition:
Rigorous HR planning links people management to the organization's
mission, vision, goals and objectives, as well as its strategic plan and
budgetary resources. A key goal of HR planning is to get the right

41 | P a g e

number of people with the right skills, experience and competencies in

the right jobs at the right time at the right cost.
Note the emphasis on linkage to strategic planning and business planning
in the first sentence, and the emphasis on the arrangement and
alignment of staff and employees in the last sentence.
Here's another definition, perhaps a bit simpler:
The process by which management ensures that it has the right
personnel, who are capable of completing those tasks that help the
organization reach its objectives.

Integrated strategic planning and human resource planning

Particularly for those working in HR departments, it's easy to forget that
HR planning (and HR functions) do not exist as ends in themselves, but
exist to serve the rest of the organization in achieving the business goals
of the organization. Often HR functions and human resource planning get
accidentally de-linked from business goals.
Since human resources functions and strategies are a means to achieve
corporate ends, they need to be tied to, and driven by the corporate role,
mission, vision and strategic goals, or else they simply end up as
processes that add overhead, but down increase return.
The solution is obvious. Human resource planning needs to reference the
details of the overall strategic plan of the organization. In effect, it serves
the strategic plan.

42 | P a g e

Need for HR Planning:.Human

resource planning is deemed

necessary for all organizations

for one or the other of the following reasons:

1.TO Carry on its work , each organization needs personnel with the
necessary qualifications ,skills,knowledge,work experience and aptitude
for work. These are provided through effective manpower planning.

2.There is an increasing awareness among the managers that no

business can survive and grow without adequate and appropriate
human resources and their proper manacognizaofemerging to the
need for strucchanges on the onhand and to the emerging set of
human expectations on Adequate investment on human capital is
indispensable in a business environment.
3.A substantial improvement in quality of life and quality of work life
backed by total quality management, require systematic human
resource planningPlanning will help in positioning needed employees
at the desired time taking into account the lead time for the process
of identifying tshortages, getting the vacancy cleared and going
through the selection process.
4.Manpower planning is also needed in order to identify areas of
surplus personnel or areas in which there is a shortage of
personnel .If there is a surplus , it
if there

is shortage ,

can be redeployed ; and

it may be made good.

5.The nature of the present workforce in relation to its changing

needs also necessitates the recruitment of new labour . To
meet the challenge of a new and

changing technology.s
43 | P a g e

Human Resource Planning: an Introduction was written to draw

these issues to the attention of HR or line managers. We
address such questions as:

What is human resource planning?

How do organizations undertake this sort of exercise?

What specific uses does it have?

In dealing with the last point we need to be able to say to hard pressed
managers: why spend time on this activity rather than the other issues
bulging your in tray? The report tries to meet this need by illustrating
how human resource planning techniques can be applied to four key
problems. It then concludes by considering the circumstances in which
human resource can be used.

1. Determining the numbers to be employed at a new location

If organizations overdo the size of their workforce it will carry surplus or
under-utilised staff. Alternatively, if the opposite misjudgement is made,
staff may be overstretched, making it hard or impossible to meet
production or service deadlines at the quality level expected. So the
questions we ask are:

How can output be improved your through understanding the

interrelation

between

productivity,

work

organisation

and

44 | P a g e

technological

development?

What

does

this

mean

for

staff

numbers?

What techniques can be used to establish workforce requirements?

Have more flexible work arrangements been considered?

How are the staff you need to be acquired?

The principles can be applied to any exercise to define workforce

requirements, whether it be a business start-up, a relocation, or the
opening of new factory or office.

45 | P a g e

2. Retaining your highly skilled staff

Issues about retention may not have been to the fore in recent years,
but all it needs is for organizations to lose key staff to realize that an
understanding of the pattern of resignation is needed. Thus organizations
should:

Monitor the extent of resignation

Discover the reasons for it

Establish what it is costing the organisation

Compare loss rates with other similar organizations.

Without this understanding, management may be unaware of how many

good quality staff are being lost. This will cost the organisation directly
through the bill for separation, recruitment and induction, but also
through a loss of long-term capability.
Having understood the nature and extent of resignation steps can be
taken to rectify the situation. These may be relatively cheap and simple
solutions once the reasons for the departure of employees have been
identified. But it will depend on whether the problem is peculiar to your
own organisation, and whether it is concentrated in particular groups
(e.g. by age, gender, grade or skill).
3. Managing an effective downsizing programme
This is an all too common issue for managers. How is the workforce to be
cut painlessly, while at the same time protecting the long-term interests
of the organisation? A question made all the harder by the time
46 | P a g e

pressures management is under, both because of business necessities

and employee anxieties. HRP helps by considering:

The sort of workforce envisaged at the end of the exercise

The pros and cons of the different routes to get there

How the nature and extent of wastage will change during the rundown

The utility of retraining, redeployment and transfers

What the appropriate recruitment levels might be.

Such an analysis can be presented to senior managers so that the cost

benefit of various methods of reduction can be assessed, and the time
taken to meet targets established.
If instead the CEO announces on day one that there will be no
compulsory redundancies and voluntary severance is open to all staff, the
danger is that an unbalanced workforce will result, reflecting the take-up
of the severance offer. It is often difficult and expensive to replace lost
quality and experience.
4. Where will the next generation of managers come from?
Many senior managers are troubled by this issue. They have seen
traditional career paths disappear. They have had to bring in senior staff
from elsewhere. But they recognise that while this may have dealt with a
short-term skills shortage, it has not solved the longer term question of
managerial supply: what sort, how many, and where will they come
from? To address these questions you need to understand:

47 | P a g e

The present career system (including patterns of promotion and

movement, of recruitment and wastage)

The characteristics of those who currently occupy senior positions

The organisations future supply of talent.

This then can be compared with future requirements, in number and

type. These will of course be affected by internal structural changes and
external business or political changes. Comparing your current supply to
this revised demand will show surpluses and shortages which will allow
you to take corrective action such as:

Recruiting to meet a shortage of those with senior management

potential

Allowing faster promotion to fill immediate gaps

Developing cross functional transfers for high fliers

Hiring on fixed-term contracts to meet short-term skills/experience

deficits

Reducing staff numbers to remove blockages or forthcoming

surpluses.

Thus appropriate recruitment, deployment and severance policies can be

pursued to meet business needs. Otherwise processes are likely to be
haphazard and inconsistent. The wrong sorts of staff are engaged at the
wrong time on the wrong contract. It is expensive and embarrassing to
put such matters right.
Significance of Human Resource Planning:-

48 | P a g e

The failure in HR Planning will be a limiting factor in achieving the

objectives of the organisation. If the number of persons in an
organisation is less that the number of persons required, then, there will
be disruptions in the work, production will be hampered and the pace of
production will be slow and employees burdened with more work. If there
is surplus manpower in the organisation, there will be unnecessary
financial burden on the organisation in the form of a large pay bill if
employees are retained in the organisation or if they are terminated the
compensation will have to be paid to the retrenched employees.
Therefore, it is necessary to have adequate number of persons in
an organisation to attain the objectives of the organisation.
In order to achieve the objective of the organisation, the HR planner
should be concerned with the timing and scheduling of planning of
human resources. Further more, the management has to be persuaded
to use the results of manpower planning studies, which are conducted.
Manpower planning can also be used as an important aid in framing the
training and development programmes for the employees because it
takes into account the anticipated changes in the Human Resource
requirement of the organizations.
Nature of Human Resource Planning:1. Manpower planning involves all the activities with regard to
human resources, which belongs to heterogeneous species.
2. Manpower planning includes determination of manpower
needs both in quantitative and qualitative terms. The
determination of needs must be made in advance to permit
adequate time for education, training and development.
49 | P a g e

3. It includes an inventory of present manpower in order to

determine the status of the present supply of manpower so
that the labour force can be used to its full capacity.
4. To be effective, manpower planning must focus not only on
the people involved but also on the working conditions and
the relationships in which they work.

5. Manpower is an important asset of an organisation, which is

affected by its social, cultural, economic and psychological
backgrounds. Therefore, the manpower must be planned
and utilized carefully.

Process of Human Resource Planning:With the expansion of business adoption of complex technology and
professional management techniques, the process of human resource
planning has assumed great significance. HRP consists of the following
stages:1. Analyzing organizational plans and deciding objectives.
2. Analyzing factors for manpower requirements.
a) Demand Forecasting Forecasting the overall human resource
requirements in accordance with the organizational plans.
b) Supply Forecasting Obtaining the data and information about
the present inventory of human resources and forecast the
future changes in present human resource inventory.
50 | P a g e

3. Developing Employment Plans.

4. Developing Human Resource Plans.

How can HRP be applied?

The report details the sort of approach companies might wish to take.
Most organizations are likely to want HRP systems:

Which are responsive to change

Where assumptions can easily be modified

That recognise organizational fluidity around skills

That allow flexibility in supply to be included

That are simple to understand and use

Which are not too time demanding.

To operate such systems organizations need:

Appropriate demand models

Good monitoring and corrective action processes

Comprehensive data about current employees and the

external labour market

An

understanding

how

resourcing

works

in

the

organisation.

51 | P a g e

If HRP techniques are ignored, decisions will still be taken, but without
the benefit of understanding their implications. Graduate recruitment
numbers will be set in ignorance of demand, or management succession
problems will develop unnoticed. As George Bernard Shaw said: to be in
hell is to drift; to be in heaven is to steer. It is surely better if decision
makers follow this maxim in the way they make and execute resourcing
plans.

Advantages of Human Resource Planning Programmes:As manpower planning is concerned with the optimum use of human
resources, it can be of great benefit to the organisation in particular and
to the nation in general. At the national level, it would be concerned with
factors like population, economic development, educational facilities and
labour mobility. At the level of the organisation it is concerned with
requirements, sources of availability, the welfare of human resources etc.
The various advantages of human resource planning are discussed
below:
1. Improvement

of

Labour

Productivity:

Manpower

or

Human

Resources as a factor of production differs from other factors of

production. As it is subject to its free will, the productivity of labour
can be improved if the workers are kept satisfied. In other words,
just as the satisfied workers can be productive, dissatisfied workers
can be even

destructive.

Therefore,

through proper human

resource planning we can improve the morale of the labour and

improve labour productivity.
52 | P a g e

2. Recruitment of Qualified Human Resources: Talented and skilled

labour has become a scarce resource especially in developing
countries. Therefore, for the long run survival of the firm, it is
essential to recruit the best labour force through proper manpower
planning.
3. Adjusting with the Rapid Technological Change: With the change in
technology, the job and job requirements are also changing.
Therefore, it is necessary to forecast and meet the changing
manpower, which can withstand the challenges of the technological
revolution. This can be done only through effective manpower
planning.
4. Reducing Labour Turnover: The labour turnover refers to the
mobility of labour out of the organisation due to various factors
such has dissatisfaction, retirement, death etc. Due to labour
turnover a firm will be loosing experienced and skilled labour force.
This loss can be minimized only through efficient manpower
planning.
5. Control

over

Recruitment

and

Training

cost:

Highly

skilled

personnel are in short supply and it is very costly to hire, train, and
maintain that. A company has to incur heavy costs in processing
applications, conducting written tests, interview etc., and in the
process of providing adequate training facilities. In consideration of
these costs it is essential to plan carefully in relation to the
manpower so as to reduce the recruitment and training cost.
6. Mobility of Labour: Today, it is very difficult to maintain the
qualified personnel in an organisation as they will be moving from
one job to another in search of better prospects. In a free society,
human beings enjoy unrestricted mobility from one part of the
country to the other. Therefore, in order to reduce the loss of
53 | P a g e

experienced and skilled labour, every organisation must have a

sound system of manpower planning.
7. It can Facilitate Expansion Programmes: In these days of rapid
industrial development every company goes for expansion of its
activities. As a result of the increasing company size, the demand
for human resources also increases. This necessitates proper
manpower planning so as to ensure the continued supply of the
required manpower for the firms activities.
8. To treat the Manpower like real Corporate Assets: Today it is being
increasingly felt by the practicing managers and psychologists that
men in an organisation must be treated like the most significant
assets. The productivity of a company can be improved only
through manpower planning recognizing the significance of the
human factor in business. A proper manpower planning considers
the fact that satisfied workers can contribute a lot to the overall
profitability of the firm through improved productivity.
Practical benefits
When it concerns human resources, there are the more specific criticisms
that it is over-quantitative and neglects the qualitative aspects of
contribution. The issue has become not how many people should be
employed, but ensuring that all members of staff are making an effective
contribution. And for the future, the questions are what are the skills that
will be required, and how will they be acquired.
There are others, though, that still regard the quantitative planning of
resources as important. They do not see its value in trying to predict
events, be they wars or takeovers. Rather, they believe there is a benefit
from using planning to challenge assumptions about the future, to
stimulate thinking. For some there is, moreover, an implicit or explicit
54 | P a g e

wish to get better integration of decision making and resourcing across

the whole organisation, or greater influence by the centre over devolved
operating units.
Cynics would say this is all very well, but the assertion of corporate
control has been tried and rejected. And is it not the talk of the process
benefits to be derived self-indulgent nonsense? Can we really afford this
kind of intellectual dilettantism? Whether these criticisms are fair or not,
supporters of human resource planning point to its practical benefits in
optimising the use of resources and identifying ways of making them
more flexible. For some organisations, the need to acquire and grow
skills which take time to develop is paramount. If they fail to identify the
business demand, both numerically and in the skills required, and secure
the appropriate supply, then the capacity of the organisation to fulfill its
function will be endangered.
Limitations of Human Resource Planning:The main problems in the process of human resource planning are as
follows:
1.

Inaccuracy: Human resource planning involves forecasting the

demand

for

and

supply

of

human

resources.

Projecting

manpower needs over a period of time is a risky one. It is not

possible to track the current and future trends correctly and
convert the same into meaningful action guidelines. Longer the
time horizon, greater is the possibility of inaccuracy. Inaccuracy
increases when departmental forecasts are merely aggregated
without critical review. Factors such as absenteeism, labour
turnover, seasonal trends in demand, competitive pressures,

55 | P a g e

technological changes and a host of other factors may turn the

rest of manpower plans as fashionable, decorative pieces.
2.

Uncertainties: Technological changes and market fluctuations

are uncertainties, which serve as constraints to human resource
planning. It is risky to depend upon general estimates of
manpower in the face of rapid changes in environment.

3.

Lack of support: Planning is generally undertaken to improve

overall efficiency. In the name of cost cutting, this may
ultimately help management weed out unwanted labour at
various levels. The few efficient ones that survive such frequent
onslaughts complain about increased workload. Support from
management is equally missing. They are unwilling to commit
funds for building an appropriate human resource information
system. The time and effort involved with no tangible,
immediate gains often force them to look the other way.
Successful human resource planning flourishes slowly and
gradually.

In

some

cases,

sophisticated

technologies

are

forcefully introduced just because competitors have adopted

them. These may not yield fruits unless matched with the needs
and environment of the particular enterprise.
4.

Numbers

game:

In

some

companies,

human

resource

planning is used as a numbers game. There is too much focus

on the quantitative aspect to ensure the flow of people in and
out of the organisation. Such an exclusive focus overtakes the
more important dimension, ie. The quality of human resources.
HR planning, in the final analysis, may suffer due to an
excessive focus on the quantitative aspects. The quality side of
the coin (consisting of employee motivation, morale, career
prospects, training avenues etc) may be discounted thoroughly.
56 | P a g e

5.

Employees Resistance: Employees and trade unions feel that

due to widespread unemployment people will be available for
jobs as and when required. Moreover they feel that human
resource planning increases their workload and regulates them
through productivity bargaining.

6.

Employers Resistance: Employers may also resist human

resource planning feeling that it increases the cost of manpower.

7.

Lack of Purpose: Managers and human resource specialists do

not fully understand human planning process and lack a strong
sense of purpose.

8. Time and Expense: Manpower planning is a time-consuming and

expensive exercise. A good deal of time and cost are involved in date
collection and forecasting.
9. Inefficient Information System: In most of the organizations,
human resource information system has not been fully developed.
In the absence of reliable data, it is not possible to develop
effective human resource plans.

57 | P a g e

TRAINING AND DEVELOPMENT

Every

organization needs to have well-trained and experienced

personnel to perform the activities that have to be done. If the current

of potential job occupant can meet this requirement, training is not
important. But when this is not the case, it is necessary to raise the skill
levels and increase the versatility and adaptability of employees.
Inadequate job performance or a decline in productivity or changes
resulting out of job redesigning or technological changes require some
type of training and development effects. As the jobs become more
complex, the importance of employee development also increases This
unit throws light on various facets of training.

Meaning of Training
The term training indicates any process by which the aptitudes, skill and
abilities of employees to perform specific jobs are increased. Employee
training tries to improve skills, or add to the existing level of knowledge
so that the employee is better equipped to do his present job, or to
prepare him for a higher position with increased responsibilities.
However, individual growth is not san end in itself. Organizational growth
needs to be meshed with the individual growth. The concern is for the
organizations variability, that it is should adapt itself to a changing
environment.

Training refers to the teaching /learning activities carried on for the

primary purpose of helping members of an organization to acquire and
58 | P a g e

apply the knowledge, skills abilities and attitudes needed by that

organization. Broadly speaking, training is the act of increasing the
knowledge and skill of an employee for doing a particular job.

Objective of Training
The chief aim of formal education for the manager is to increase is ability
to learn from experience The second aim is to increase his ability to help
his subordinates learn from experience. According to Douglas Mc Gregor,
there are three different purposes of learning.

1. Acquiring Intellectual knowledge- An electrical engineer may

need more knowledge than he now possesses about circuit design.
A new employee may require knowledge about company policies. A
foreman may require information about the new provisions in the
labour agreement. The acquisition of knowledge is a fairly straight
forward process provided the individual wants the new knowledge.
It can be made available to him in several ways. However, if he
does not want the knowledge, there is considerable difficulty
getting him to learn it. In industry, attempts should be made to
create a felt need for new knowledge.

2. Acquiring Manual Skills- The acquisition of a manual skill

requires practice or experience accompanied by feed back pure
trial and error learning can be seeded up by guidance but the
individual cannot learn unless he performs and receives clues which
59 | P a g e

tell him about the success of his efforts. The necessary effort will
be expanded only if there is a felt need on the part of the learner

3. Acquiring Problem-Solving Skills- Much of a managers work is

solving problems. These include organizing his own and his
subordinates activities, planning and a wide range of other
decision-making activities. These are skills involved in diagnosing
problems,

interpreting

relevant

data,

assessing

alternative

solutions and getting feedback concerning the effectiveness of the

solution. These skills can be improved and classroom education is
one method utilized for this purpose.

4. As with any skill, practice and feedback are essential for learning.
The most widely used classroom method for improving the problem
solving skills is the case method. In the hands of a skilful teacher,
it can be highly effective.

Importance of Training
Training is the corner stone of sound management, for it makes
employees more effective and productive. It is actively and intimately
connected with al the personnel or managerial activities. It is an integral
part of the whole management programme, with all its many activities. It
is an integral part of the whole management programme, with all its
many activities functionally interrelated. Training is a practical and vital
necessity because; it enables employees to develop an dries within the
organization, and increase their market value earning power and job
60 | P a g e

security It also enables management to resolve sources of friction arising

from parochialism, to bring home to the employees the fact that the
management is not divisible . It moulds the employees attitudes and
helps them to achieve a better cooperation with the company and a
greater loyalty to it. Training heightens the morale of the employees for it
helps

in

reducing

dissatisfaction,

complaints,

grievances

and

absenteeism, reduces the rate of turnover. Further, trained employees

make a better and economical use of materials and equipment.

The importance of training has been expressed as follows training is

widely accepted problem solving device. Indeed our national superiority
in manpower productivity can be attributed in no small measure to the
success of our educational and industrial training programme

The success has been achieved by a tendency in many quarters to regard

training as a panacea. It is almost traditional in America to believe that if
something is good, more of the thing is even better. Hence we take more
vitamin pills to solve personal health problems and more training to solve
our manpower problems. Over and under emphasis on training stems
largely from inadequate recognition and determination of trading needs
and objectives. It stems also from lack of recognition of the professional
techniques of modern industrial training.

Training Needs Identification

Training could be a useful aid in improving the transformation process
that takes place in an organization in terms of the processing of inputs to
outputs. Training needs have to be related both in terms of the
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organizations demands and that of the individuals. Diversification of

product lines, new technology, and hence a new kind of job demands the
individual growth and development thorough induction, training or
training necessitated by job rotation due to an organizations internal
mobility policies.

A survey conducted by A.D Sinha, listed in rank order the following

methods of identifying training needs

1. Views of the line manager

2. Performance appraisal
3. Company and departmental plans
4. Views of training manager
5. Analysis of job difficulties.

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MORALE AND MOTIVATION

Morale is a widely use term in organizations But in general, it refers to
esprit de corps, a feelings of enthusiasm, zeal confidence in individuals or
groups that they will be able to cope with the tasks assigned to them.
Morale is said to be the ability of a group to work together for a common
objective. The result of high morale generally results in the high
efficiency of the organization this unit deals with the meaning,
importance,

measurement

and

improvement

of

morale

in

an

organizational setting. A few theories of motivation are also dealt with.

Meaning of Morale:
Morale has been variously defined by different authors. Professor Raiph
C. Davis says. Good organizational morale is a condition in which
individuals and groups voluntarily make a reasonable subordination of
their personal objectives of their organization. According to Dale Yoder
and Paul D. Standohar, Morale means evident commitment, that is
demonstrated spirit, enthusiasm, and confidence in the organizations
policies, programmes, and accomplishments. Moral is revealed by what
individuals and groups say and do to show an interest in, understanding
of and personal identification with work team survival and success. Edwin
B. Filippo has described morale as a mental condition or attitude of
individuals and groups which determines their willingness to co-operate
Good

morale

is

evidenced

by

employee

enthusiasm,

voluntary

conformance with regulations and orders, and a willingness to cooperate

with others in the accomplishment of an organizations objectives. Poor

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morale

is

evinced

by

surliness,

insubordination,

feeling

discouragement and dislike of the job, company and associates.

According to Haimann, It is a state o mind and emotions affecting the

attitude and willingness to work, which in turn, affect individual and
organizational objectives. Joseph D. Mooney describes morale as the
sum total of several psychological qualities which include courage,
fortitude, resolution and above all confidence.

Importance of Morale:
From the above definitions we can say that morale refers directly to the
working of an individual in a team towards the realization of common
objectives. The building of morale is not a mechanical problem that could
be solved by either rewards of punishments or by issuing orders
regarding morale. The content of morale i.e. a specific issue that
operates as pressures of separates could be broadly dividend into three
groups: the first concerns, off the job satisfaction that is expected form
work such as income, security, and stature in the community, the second
concerns on the job satisfaction for example job interest, opportunity for
advancement and prestige within the organization, and the third group
concern highly personal satisfaction as derived from the job such as
growth, achievement powers, job expertise etc. Each group is important
in its own way and any dissatisfaction in one will have adverse effect on
other groups.

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Morale depends upon the relations between expectations and reality. The
closer the individuals environment comes to providing the kinds of
rewards he experts the better will be his morale.

Morale might also be described as the spirit and confidence with which
the employee performs his job. It is a complex psychological quality that
is impossible to force on someone, different to measures, and easily
destroyed. The level of morale is a result of the degree to which the
overall needs of the individual are fulfilled.
The important factors which have a bearing on employees morale can be
classified as relating to

1. The employees background which includes his levels of indigence

and education and his type of personality largely determines the
way in which he seeks to fulfill his needs for belonging esteem, and
self realization. High morale hinges on the satisfaction of these
needs.
2. An employees personal environment encompasses his relations
with his family, friends, and neighbours. The employee brings his
thoughts o his home and social life with him when he goes to work
and they influence his thinking and attitudes while on the job.
3. Management practices influencing morale include policies on
procedures with respect towages, promotion methods employee
services and benefits, working conditions, handling grievances,
disciplinary actions

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Measurement of Employee Morale:

Morale can be measured by assessing attitudes an dob satisfaction. As it
is an intangible subjective concept, it cannot be directly measured or
evaluated. Employees may be unwilling to express their feelings of
satisfaction or dissatisfaction with their job to the management. Methods
of measuring morale range all the way form the hunch of general
feeling appraisal to reasonably scientific efforts.
The most commonly used methods for measuring morale are:

1. The supervisor/executives impressions

2. The guided interview.
3. The unguided interview
4. A combination of the guided and unguided interview.
5. An analysis of company records
6. The listening-in process.
7. The questionnaire
8.A combination of any of the foregoing methods.

Motivation
The study of human motivation is of great importance in any theory of
management. Man is by nature constantly motivated. He is an organic
system, not a mechanical one. The inputs of energy such as food, water
etc., are converted by him into outputs of behavior. His behavior is
determined by relationships between his characteristics as organic
system and the environment in which he moves. Management involves
66 | P a g e

creation and maintenance of environment for performance of individuals

working

together

in

groups

towards

accomplishment

of

common

objectives and therefore the manager cannot perform his functions

without knowing what motivates people.

Motivation Defined:
The personnel function is really all about motivation. It is agreed that
unless individuals are motivated to make sufficient potential to perform
effectively, they may not achieve the level of performance that is desired
from them. Managerial people are always facing the problems of
motivating their subordinates to release their potential most effectively
an thereby permit the desired goals of the organization and the needs of
employees to be achieved. Knowledge of the motivational process
provides the basis for understanding why people do what they do.

Motivation is positively correlated with concepts of 1) level of aspiration

2) degree of commitment and 3) inclination towards action.

It is rightly said, You can buy a mans time, you can buy a mans
physical presence at a given place but you cannot buy his enthusiasm,
initiative and loyalty. Motivation aims at transforming the ability to do
into the will to do. Motivated employees are in a state of tension. To
relive this tension, they engage in activity. The greater the tension, the
greater shall be the activity to bring about relief.

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Therefore, when we see someone working hard at some activity, we can

conclude that the individual is driven by a desire to achieve some goal
which perceives as having value to him.

Motivation has been defined as the act of stimulating someone to take a

desired course of action to push the right button to get a desired
reaction. It includes a stimulus and desired results. Motivation concerns
itself with the will to work. It seeks to know the motives for work and to
find out ways and means, by which their realization can be helped and
encouraged.

Mr. Urwick has called it the dynamic aspect of management. According to

Michael Jucius, motivation is an act of stimulating someone to get a
desired course of action. James Driver says that , motivation means the
phenomena involved in the operation of incentives and drives In the
words of PT Young, motivation is a the process (a) of arousing or
initiating behavior, (b) of sustaining an activity in progress and (c) of
channeling of activity in the given course.

A mans performance on a specific task is a function of his skill and

motivation. Thus it can be said that p = f (S,M),

where P is for

performance, S for skill of M for motivation Skill does not guarantee that
the individual will put forth his best effort. There is another variable,
namely motivation which finally determines the effort which can be
expected from such employee. That difference is motivating affects
performance has been demonstrated very conclusively in laboratory

68 | P a g e

experiments. It was found that other things being equal performance

level is higher if the motivation level is higher

The key to understand motivation lies in the meaning and relationships

between needs, drives and goals This demonstrated through the
motivation cycle given below.

1. Needs: The best one word definition of a need is efficiency. In the

domestic

sense,

needs

are

created

whenever

there

is

physiological or psychological imbalance. For example a need exist

when a cell in the body is deprived of food and water or when the
human personality is deprived of other persons who serve as
friends or comparisons.

2. Drives: Drives are set up to alleviate needs. A drive can be defined

as deficiency with direction. Drives are action-oriented and provide
an energizing thrust toward goal accomplishment. The examples of
the needs for food and water are translated into hunger and thirst
drives and need for friends becomes a drive for affiliation.

3. Goals: The end of the motivation cycle is the goal. A goal in the
motivation cycle can be defined as anything which will alleviate a
need and reduce a drive.

Motivation may range from a threatening gesture to a tradition inspired

activity. Thus the atmosphere of working situation, the past history of
69 | P a g e

human relations in a company, expectation about the future as well as a

wage incentive plan be stimulus to action, it is believed that the full force
of motivation lies in the person doing the motivation. In the case the
management, it is the magnetic personality of the executive which
induces high loyalty and production. If the executive does not have this
quality, he is obviously at a disadvantage. However, he can develop
effective plans of motivation.

Classes of Motivators:
The range of stimuli which motivates people is very wide. Motivators may
be either financial or non-financial. Again non-financial motivates may be
individual group or company. As regards individual motivators, it is
obvious that as human beings people have some basic needs. Unless
these are satisfied, life is not worth living. So in various ways people try
to satisfy these needs. Food, shelter clothing and sex are such basic
need. These needs are served through work. We earn money to purchase
particular commodities and services which will satisfy our basic needs.

In the second place, equally powerful as motivators are the stimuli which
arise out of social interactions. We are powerfully affected by what others
think of us and our actions. Even the basic wants are affected by group
approval or disapproval. That we live in particular communities put on
particular kinds of clothing and prefer certain types of occupations are
due to adherence to group opinion of our families, neighbors or working
associates. As man is becoming more and more civilized, the power of
group motivators grows. Simply by inveighing against them, one cannot

70 | P a g e

undermine there importance. Management should utilize group pressures

and if possible, should improve their quality and standards.
In the third place attention should be given to the specific relation of
non-financial motivators to the business situation. Sometimes the goals
of life may come into conflict with the goals of business. Her some
adjustment id necessary. A man has to give up a large part of life to earn
his living.

Steps of Motivation:
Following Michael Jucius, let us see how management may proceed to
motivate employees. This activity may be divided into two parts: a) what
is to be done and b) how and why what is done The former are steps in
motivation and the latter are rules governing the steps. Both are
performed simultaneously. The steps of motivation are listed below.

1. Size up situation requiring motivation The first stage of

motivation is to make sure of motivational needs. Every employee
needs motivation. However, all people do not react in exactly the
same way to the same stimuli. Keeping this in mind the executive
shall size up how much and what kind of motivation is needed and
when and by which individuals

2. Prepare

set

of

motivating

tools-

Having

determined

the

motivational needs of a particular person or group an executive

must have a list from which he should select and apply specific
tools of motivation. An executive from his personal experience
71 | P a g e

should prepare a list of shat devices are likely to work with what
type of people and under what circumstances.

3. Selecting

and

applying

the

appropriate

motivator-

Proper

application of motivational plan is very important. This involves

selection of the appropriate technique, the method of application
and the timing and location of applications. Having selected
appropriate techniques thought must be given to its application.

4. Follow-up results of the application- The last stage of motivation is

to follow-up the results o the application of the plan. The primary
objective is to ascertain if an employee has been motivated or not.
If not some other technique should be tried. A secondary purpose
of follow up is to evaluate motivation plans for future guidance.

Rules of Motivating:
In following the steps of motivation a manager should be guided by some
fundamental rules which should be based upon the following principles

1. Self-interest and Motivation- Undoubtedly, motivation is mainly

built on selfishness. Psychologically speaking, selfishness is a part
and parcel of life. To deny this is to build the theory on unrealistic
foundation. To seek some other basis of motivation would be to
ignore the real nature of man. The aim should be to learn more
about selfishness.

72 | P a g e

2. Attainability- Motivation must establish attainable goals. What is

prescribed for a particular person must be attainable by him. This
does not mean that the goal is realized at once. Such goals as
promotion or desirable transfer may take years to attain. But it
must be within reach.

Theories of Motivation:
The importance of motivation to human life and work can be judged by
he number of theories that have been propounded to explain peoples
behavior. They explain human motivation through human needs and
human nature. Prominent song,

these theories are Maslows Need

Hierarchy TheoryY and Herzberg and et al s Motivation Hygiene Theory.

Maslows Need Hierachy Theory

Maslows theory of basic needs provides valuable insights about human
motivation. Maslow views an individuals motivation as a predetermined
order of needs which he strives to satisfy. His model of Hierarchy of
Needs indicates the following propositions about human behavior.

Physiological Needs- These are basic to life, viz, hunger for food thirst,
helter and companionship among others. They are relatively independent
of each other and in some cases can be identified with a specific location
in he body. These needs are cyclic. In other words, they are satisfied for
only a short period; then they reappear.
73 | P a g e

Safety Needs- If the physiological needs are relatively satisfied a set of

needs emerge for protection against danger and threats. In an ordered
society a person usually feels safe from extremes of climate, tyranny,
violence and so on.

Social Needs If the physiological and safety needs are fairly satisfied,
the needs for love an affection and belongingness will emerge and the
cycle will

repeat itself with this new centre. If he is deprived of these

needs he will want to attain them more than anything else in the world.
An individual desires affectionate relationships with people in general and
desires to have a respected place in his group.

Esteem Needs- Every one has a need for self-respect and for the
esteem of others. This results in the desire for strength, confidence,
prestige, recognition and appreciation. These egoistic needs are rarely
completely satisfied. The typical industrial and commercial organization
does not offer much opportunity for their satisfaction to employees at the
lower levels.

Self actualization Needs The term self-actualization was coined by

Kurt Goldstein and means, to become actualized in what one is
potentially good at. A person may achieve self actualization in being
the ideal fitter, supervisor, mother or an eminent artist.

74 | P a g e

People who are satisfied with these needs are basically satisfied people
and it is from these that we can expect the fullest creativeness. A sound
motivational system to be successful, must be productive in the sense of
inducing subordinates to work efficiently, must be comprehensive, i.e. it
must cover basic as well as higher needs and it must be flexible to suit
changes in the environment.

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HUMAN RESOURCE DEVELOPMENT

Introduction:
Human Resource is the backbone of any organization. Properly trained
and highly skilled human resource is perceived as the greatest assert of
an organization. Skilled personnel contribute to efficiency, growth,
increased productivity and market reputation of an organization. This has
been realized by industrial commercial, research establishments and
even governments. Invariably, a separate Human Resource Development
Department exists in all these organizations to attend to the matters
relating to recruitment, training and deployment.

Technological advancements in various fields the world over are very

rapid, and every other day we see new products or machines or
equipment with more and more advanced features, with which users
have to be acquainted . In order to cope with the industry demand and
technological advancements. We need to develop training strategy for
our human capital to attain the required skill levels.

Human Resources Management poses special challenges to the Human

Resources

leader

Management

in

requires

organizations.
special

HR

Effective
tools,

Human

special

Resources

approaches

to

management, and access to professional Human Resources association,

education and publications. Earn more about all aspects of management
specific to Human Resources management.

76 | P a g e

Increasingly, firms are considering the adoption of new work practices,

such as problem-solving teams enhanced communication with workers,
employment security, flexibility in job assignments, training workers for
multiple jobs, and greater reliance on incentive pay This paper provides
empirical evidence to address the question. Do these human resources
management practices improve work productivity? For

this study, we

constructed our own data base through personal site visits to 26 steel
plants which contained one specific steelmaking process and collected
longitudinal data with prices measures on productivity, work practices,
and the technology in these production lines. The empirical results
consistently support the following conclusion: the adoption of a coherent
system of these new work practices, including work teams, flexible job
assignments,

employment

security, training in multiple jobs,

and

extensive reliance on incentive pay produces substantially higher levels

of productivity than do more traditional approaches involving narrow job
definitions, strict work rules, and hourly pay with close supervision. In
contrast, adopting individual work practice innovations in isolation has no
effect on productivity. We interpret this evidence as support or recent
theoretical models which stress the importance of complementarities
among a firms work practices.

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Meaning of Human Resource Development:

Human Resource Development is the framework for helping employees
develops their personal and organizational skills, knowledge, and
abilities. Human Resource Development includes such opportunities as
employee

training,

employee

career

development,

performance

management and development, coaching, succession planning, key

employee

identification,

tuition

assistance,

and

organization

development.
The focus of all aspects of Human Resource Development is on
developing the most superior workforce so that the organization and
individual employees can accomplish their work goals in service to
customers.
Human Resource Development can be formal such as in classroom
training, a college course, or an organizational planned change effort. Or,
Human Resource Development can be informal as in employee coaching
by a manager.
Human resources deal with planning, organizing, directing & controlling
of

the

procurement,

development,

compensation,

integration

&

maintenance of people for purpose of contributing to organizational,

individual & social goals. HRD managers at all level of organization are
involved in the management of human resources. The key to success in
these endeavors lays in the strength of the development process to
health our people to reach optimum levels of performance. Dynamic
organization is building boundary less organization believing in team
building and partnerships with a view to achieve excellent results. New
mission and vision can be achieve by stimulated the positive forces for
humanizing the IT system and organization. Enabling the human
78 | P a g e

resources working in there-to-there best contribution. In much the same

way when it takes so much capitals and efforts to bring a customer to
the shop window or the virtual market place, it is absolutely necessary to
retain them. This can't be done without the highly committed human
resource pool within organization.
Human Resource Development (HRD) is a positive concept in human
resource management. It is based on the belief that an investment
in human beings is necessary and will invariably bring in
substantial benefits to the organisation in the long run. It aims at
overall development of human resources in order to contribute to
the well being of the employees, organisation and the society at
large.

HRD is rooted in the belief that human beings have the potential to do
better. It, therefore, places a premium o the dignity and tremendous
latent energy of people. Where balance sheets show people on the debt
side, HRD seeks to show them as assets on the credit side.
HRD aims at helping people to acquire competencies required to perform
all their functions effectively and make their organisation do well.
An Overall New Approach to Human Resource Development:
The insight most commonly expressed during the interviews with 80,000
great managers challenges traditional human resource management and
development beliefs. Thousands of great managers stated variations on
this belief: People dont change that much. Dont waste time trying to
put in what was left out. Try to draw out what was left in. That is hard
enough.

79 | P a g e

The implications of this insight for training and performance development

are profound. This insight encourages building on what people can
already do well Instead of trying to fix weaker talents and abilities. The
traditional performance improvement process identifies specific, average
or below performance areas. Suggestions for improvement, either verbal
or in a formal appraisal process focus on developing these weaknesses.
What great managers do instead is assess each individuals talents and
skills.

They

then

provide

training,

coaching,

and

development

opportunities that will help the person increase these skills. They
compensate for or manage around weaknesses.
As an example, if I employ a person who lacks people skills, a diverse
group of staff members can form a customer service team that includes
him. Other employees with excellent people skills make his weakness
less evident. And, the organization is able to capitalize on his product
knowledge when dealing with product quality issues.
Does this mean that great managers never help people improve their
inadequate skills, knowledge, or methods? No, but they shift their
emphasis to human resource development in areas in which the
employee already has talent, knowledge, and skills.
Features of HRD:

HRD is process by which the employees of an organisation are helped to

help themselves and develop the organisation. It has the following
features:
a. HRD

is

System:

It

is

system

having

several

interdependent parts or subsystems such as procurement,

80 | P a g e

appraisal, development, etc. Change in any one subsystem

leads to changes in other parts.
b. HRD is a planned process: It is a planned and systematic way
of

developing

people.

Further, it

is

undertaken

on

continuous basis. Learning, as we all know, is a life long

process and goes on and on.
c. HRD involves development of competencies: Basically it tries
to develop competencies at four levels. At the individual
level, employees are made to realize the importance of
playing their roles in tune with overall goals and expectations
of other people. By enriching and redesigning jobs, the roles
of employees are made more meaningful and interesting.
d. HRD

is

an

inter-disciplinary

concept:

HRD

is

an

amalgamation of various ideas, concepts, principles and

practices drawn from a number of soft sciences such as
sociology, psychology, anthropology, economics, etc.
e. HRD improves quality of life: HRD enables the employee
discovers

and

utilizes

his

capabilities

in

service

of

organizational goals. The whole effort of HRD, thus, is

focused on improving the quality of life of employees working
at various levels in an organisation.
Objectives of HRD:
HRD, basically, aims at developing:

The capabilities of each employee as an individual

The capabilities of each individual in relation to his or her present

role

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MAINBODY OF THE PROJECT

Performance appraisal or merit rating is one of the oldest and most
universal practices of Management. It refers to all the formal procedure
used

in

working

contributions

and

organization
potentials

to
of

evaluate
group

the

personalities

members.

The

and

modern

management makes somewhat less use of the term merit rating

because it evaluates an individuals his worth as person. However, the
connection between performance and possession of traits was doubtful.
So, recently emphasis has been given to measuring the results of the
employees performance. The trend now a days is in the direction of
attempting to measure what the man does rather than what he is i.e. to
measure what is the output rather than what is the input.

Appraisal is there process of estimating the value, excellence qualities or

status of some object, person or situation in an employment setting,
appraisal is the systematic evaluation of a workers job performance and
potential for development. Employees are always evaluated either
formally or informally. So we can say that employee appraisal is a
dynamic concept, not a static on an evolutionary process and not a
revolutionary event.

Performance appraisal is an important component of the information and

control

system. Proper are selected and recruited for effective job

performance in the organization. Therefore, it becomes evident for

organization to develop performance analysis and review system which.

82 | P a g e

Performance appraisal is an important component of the information and

control system. Proper are selected and recruited for effective job
performance in the organization. Therefore, it becomes evident for
organization to develop performance analysis and review system which:

Define specific job criteria against which performance will be

measured
Objectively and accurately measure past job performance
Determine rewards based on performance
Development programmers like feed back to enhance performance
of the person on the current job and prepare and realize for
potential for future responsibilities.

FEATURES:
The main characteristics of performance appraisal may be listed thus
It is a systemic process. It follows a number of steps to evaluate
an employees strength and weakness.
It provides an objective description of an employees jobs relevant
strength and weaknesses.
It tries to find out how will the employee is performing the job and
tries to establish a plan for further improvement.
It is carried out periodically, according to a define plan. It is not
one shot deal.
It may be formal and informal. The informal evaluation is more
likely to be subjective and influenced by personal factors where as
the formal system is likely to be more fair and objective, since it is
carried out in a systematic manner, using printed appraisal forms.
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OBJECTIVES:
The objectives of performance appraisal could be either for evaluation
(judgmental) or development (helping)
The evaluation objectives include:
Provision of feed back to sub ordinates to know where they stand
Developing valid data for personnel decisions concerning placement
pay promotion, punishment etc.

The development objective include:

Diagnosing individuals and organizational strengths and weakness;

Developing positive superior- subordinate relations; and
Counseling,

coaching,

career

planning,

and

motivation

of

subordinates

For an easy and logical understanding of the performance appraisal

system, it can be constructed in a who, what, why, when and
how format. The who question actually involves two inquiries, who
should be

appraised. The answer to the first question is that all the

organizational employees should be evaluated. The second inquiry is

more difficult to answer. Most employees are evaluated by their
immediate supervisor. However, peer evaluation, self evaluation and subordinate evaluation methods are sometimes used. Often, someone from
the personnel department is used as an employee evaluator In addition,
appraisal for managerial employees is often performed by outside
consultants who are experts in this field. Usually, an employees superior
84 | P a g e

is the main appraiser, but other appraisal sources are frequently also
used both on a formal and informal basis.

What should be appraised is best answered in terms of two employee

dimension: Current performance and potential. It will be difficult to give
more importance to either of the dimensions. Often non supervisory
employees are judged by their current performance, where as managers
are often evaluated in terms of their future potential.

WHAT IS TO BE APPRAISED:
The what question also involves the issue of which criteria factors to
evaluate? Should personal trait such as intelligence, aggressiveness,
decisiveness and maturity be appraised or should only accomplished
goals

or

performance

be

appraised?

The

traditional

methods

of

performance be appraisal concentrated on personal trait where as the

new methods emphasize on achieve objectives concept is largely
responsible for bringing the new trend. In some cases the employee
appraisal system has become a combination of both the traditional trait
and the modern MBO appraisal.

There are a number of reasons why employee appraisal are necessary

The appraisal to create and maintain a satisfactory level of performance,
highlight employee needs and opportunities for personal growth and
development and take decision for promotion, transfer, layoffs and
discharges. It is seen that a properly carried out appraisal process

85 | P a g e

facilities

mutual

understanding

between

the

superior

and

his

subordinates.

WHO WILL APPRAISE ?

The appraiser may be any person who has through knowledge about the
job content, contents to be appraised, standards of contents and who
observes the employee while performing a job. The appraiser should be
capable of determining what is more important and what is relatively less
important. He should prepare reports and make judgments without bias.
Typical appraisers are : supervisors, peers, subordinate, employees
themselves and users of services and consultants.

WHEN TO APPRAISE ?
The answer to when employee appraisal take place depends on whether
the reference is to the informal appraisal process. Formal appraisals
usually occur annually or semiannually, but, informal appraisal

take

place continually. Sometimes it becomes difficulties to separate an

informal evaluation from a formal appraisal as it is seen that at times the
formal appraisal is determined by informal evaluation.

The location where employee appraisal takes place also varies. Formal
appraisal often place in the office of an employees immediate superior,
however, they may also occur at the subordinates work site or job
location. When consultants are used, the appraisal process may take
place away from the company premise. Informal appraisal take place
anywhere and everywhere, both on the job in work situations and off the
job social and recreational settings.
86 | P a g e

The question that how to performance appraisal is the most difficult to

answer. The methods used for employee appraisal are many and varied.

METHODS OF PERFORMANCE APPRAISAL

The performance appraisal methods may be classified into three
categories such as

Performance Appraisal Techniques

Individual Evaluation
Methods

Multiple person

Other methods

evaluation methods

87 | P a g e

Confidential Reports

Ranking

Assessment center

Essay Evaluation

Paired comparison

Field review

Critical Incidents

Forced Distribution

Check Lists

Graphic Rating Scale

Behaviorally Anchored

Rating Scales

Forced choice

MBO

techniques

INDIVIDUAL EVALUATION METHODS

Under the individual evaluation methods of merit rating, employees ar
evaluated one at a time without comparing them with other employees in
the organization.

CONFIDENTIAL REPORT

It is mostly used in government organization. It is a descriptive report

prepared, generally at the end of every year, by the employees
immediate superior. The report highlights the strengths and weaknesses
of the subordinates. The report is not data based. The impressions of the
superior about the subordinate are merely recorded there. It does not
offer any feedback to the appraiser.

EASSY EVALUATION

Under this method, the rater is asked to express the strong as well as
weak points of the employees behaviour. This technique is normally used
with a combination of the graphic rating scale because thereafter can
88 | P a g e

elaborately present the scale by substantiating an explanation or his

rating. Essay Evaluation is a non-quantitative technique. This method is
advantageous in least one sense that is the essay provides a good deal of
information about the employees and also reveals more about the
evaluator.

CRITICAL INCIDENT TECHNIQUE

Under this method, the manager prepares lists of statements of every

effective and ineffective behaviour of an employee. These critical
incidents or events represent the outstanding or poor behavior of
employees on the job. The manager maintains logs on each employee,
where by he periodically records critical incidents of the workers
behavior. At the end of the rating period, these recorded critical incidents
are used in the evaluation of the workers performance.

CHECKLISTS

A checklist represents, in its simplest form, a set of objectives or

descriptive statements about the employee and his behavior. If the rater
believes strongly that the employee possess a particular listed trait, he
checks the item; otherwise, he leaves the item blank. The following are
some of the sample questions in the checklist.

Is the employee really interested in the task assigned ?

Yes/No

Is h Yes/No e respected by his colleagues (co-workers)

Yes/No

Does he respect his superiors ?

Yes/No
89 | P a g e

Does he follow instructions properly ?

Does he make mistakes frequently ?

Yes/No

Yes/No

GRAPHIC RATING SCALE

Under this method, a printed form is used to evaluate the performance of

an employee. A variety of traits may be used in these types of rating
devices, the most common being the quantity and quality of work. Form
the

graphic

rating

scales,

excerpts

can

be

obtained

about

the

performance standards of employees. For instance, if the employee has

serious gaps in technical professional knowledge, lacks the knowledge to
bring about an increase in productivity, declines to accept responsibility,
fails to plan ahead effectively, wastes and misuses resources, etc. then it
can safely be inferred that the standards of performance of the
employees are dismissal and disappointing.

BEHAVIOURAL ANCHORED RATING SCALES

BARS are also known as behavioral expectations scale. It is the

combination of rating scale and critical incident techniques of employee
performance evaluation. Bars are rating scale points are determined by
statements of effective and ineffective behaviours. Scales represent a
range of descriptive statements of behavior varying from the least to the
most effective. Scales are anchored by descriptions of actual job
behavior and relevant to the job being evaluated since BARS are tailor
made for the job.

90 | P a g e

FORCED CHOICE

This method was developed to eliminate bias the preponderance of high

ratings that might occur in the organizations. The primary purpose of the
forced choice method is to correct the tendency of a rater to give
consistently high or low ratings to all the employees. This method makes
use of several sets of pair phrases, two of which may be positive and two
negative and the rater is asked to indicate which of the four phrases is
the most and least descriptive of a particular worker.

MBO

Management by objectives is a comprehensive management approach

used for both performance appraisal and organizational development. In
performance appraisal, MBOs primary objective is on developing
objective criteria for evaluating the performance of individuals. MBO also
calls

for

superior

subordinate

interaction

and

supportive

role

of

supervisor.

MULTI-PERSON EVALUATION METHODS

There are three such frequently used methods of performance appraisal

in organizations are ranking, paired comparison and forced distribution
method.

RANKING METHOD

This is a relatively easy method of performance evaluation. Under this

method, the ranking of an employee in a work group is done against that
of another employee. The relative position of each employee is expressed
in terms of his numerical rank. It may also be done by ranking a person
91 | P a g e

on his job performance against another member of the competitive

group. The whole man is compared with another whole man in this
method.

PAIRED COMPARISON

Ranking becomes more reliable and easier under the paired comparison
method. Each worker is compared with all other employees in the group;
for every trait, the worker is compared with all other employees. For
instance, when there are five employees to be compared, then As
performance is compared with that of Bs and decision is arrived at as to
whose is better or worse. Nest B is also compared with all others. Since A
is already compared with B, this B is to be compared with only C, D and
E when there are five employees, fifteen decisions are made.

. FORCED DISTRIBUTION
Under this system, the rater is asked to appraise the employee according
to a predetermined distribution scale. The raters bolas is sought to be
eliminated here because workers are not placed at a higher or lower end
of the scale. Normally, the two criteria used here for rating are the job
performance and promotability. Further, a five point performance scale is
without any mention of descriptive statements. Workers are placed
between the two extremes of good and bad performance

92 | P a g e

OTHER METHODS:

ASSESSMENT CENTRE

This method of appraising was first applied in German Army in 1930. It is

a system or organization, where assessment of several individual is done
by various experts using various techniques. These techniques include
the methods discussed before in addition to in-basket, role playing, case
studies, simulation exercises, structured in sight, transactional analysis,
etc.

FIELD REVIEW METHOD

In this method, a trained, skilled representative of the HR department

goes into the field and assists line supervisors with their ratings of their
respective subordinates. The HR specialist requests from the immediate
supervisor specific information about the employees performance. Based
on this information, the expert prepares a report which is sent to the
supervisor for review, changes, approval and discussion with the
employee who id being rated. The ratings are done on standardized
forms.

APPRAISAL ERRORS:
The rater may face various kinds of errors at the time appraisal. Some
typical errors are discussed here.

93 | P a g e

FIRST IMPRESSIONS

Rather may identify some specific qualities or features of the rate and
quickly form and overall impression about him. The identified qualities
and features may not provide adequate base for appraisal.

STEREOTYPING

Stereotyping is a standard mental picture that an individual holds about

a

person

because

of

that

persons

sex,

caste,

age,

physical

characteristics or other features. Stereotyping results in our simplified

view of the individual and may blur the raters perception and assessment
of the persons performance on the job.

HALO EFFECT

Basing the entire appraisal on the basis of one perceived positive quality,
feature or trait in an individual. Affiliation with view may result in an
higher rating than is warranted.

HORN EFFECT

Basing the evaluation on the basis of one negative quality or feature

perceived. This result is an overall lower rating than may be warranted.

CENTRAL TENDENCY

Most appraisal forms require than rater to justify if assessment is

outstanding or very poor. So a rater may say to himself. Better role
most people as average so that I do not have to justify or clarify.

94 | P a g e

STRICT OR LENIENT RATING

Depending upon the raters own standards, value system, and or physical
and mental make-up at the time of appraisal, rates may be rated be very
strictly. Such ratings usually do not carry any relevance to actual
performance of the person or bear any resemblance to how similar
performance is rated elsewhere in the organization.

POTENTIAL APPRAISAL
In most Indian organization, people earn promotions on the basis of their
past performance. The past performance is considered a good indicator
of future job success. However, in actual practice, the rotes that a role
holder played in the past may not be the transfer he is expected to play
if he assumes a different job after his transfer or promotion to a new
position. Past performance, therefore, may not be a good indicator of the
suitability of an indicator for a higher role.

To overcome this inadequacy, organization must think of a new system

called potential appraisal. The objective of potential appraisal is to
identify the potential of a given employee to occupy higher position in
the organizational hierarchy and undertake higher responsibilities.

POTENTIAL APPRAISAL ARE REQUIRED TO

Inform employees about their future prospects.

Help the organization chalk out of a suitable succession plan.

Update training efforts form time to time.

Advise employees about what they must do to improve their career

prospects.
95 | P a g e

STEPS TO BE FOLLOWED INTRODUCING A GOOD POTENTIAL

APPRAISAL SYSTEM

The following are some of the steps required to be followed while

introducing a potential appraisal system:

ROLE DESCRIPTION

Organization roles and function must be defined clearly. To this end, job
description must be prepared for each job.

QUALITIES NEEDED TO PERFORM THE ROLES

Based on job description, the roles to the played by people must be

prepared (i.e. technical, managerial jobs and behaiour dimensions)

RATING MECHANISM

Besides listing the functions and qualities, the potential appraisal system
must list mechanisms of judging the qualities of employee such as:
1. RATING BY OTHERS: The potential of a candidate could be rated
the immediate supervisor who is acquainted with the candidates
work in the past, especially his technical capabilities.
2. TESTS: Managerial and behavioural dimensions can be measured
through a battery of psychological tests.
3. GAMES: Simulation games and exercises (assessment center,
business games, in-basket, role play, etc.) could be used to
uncover the potential of a candidate.

96 | P a g e

4. RECORDS: Performance records and ratings of a candidate on his

previous jobs could be examined carefully on various dimensions
such as initiative, creativity, risk ability etc. which might play a role
in discharging his duties in a new job.

ORGANISING THE SYSTEM

After covering the preliminaries, he must set up a system that will
allow the introduction of the scheme smoothly governing answers
to some puzzling questions
1. How

much

weightage

to

merit

in

place

of

seniority

in

promotions?
2. How much weightage to each of the performance dimensions
technical, managerial, behavioral qualities?
3. What are the mechanisms of assessing the individual on
different indicators of his potential and with what reliability?

FEEDBACK

The system must provide an opportunity for every employee to know

the results of his assessment. He should be helped to understand the
qualities actually required for performing the role for which he thinks
he has the potential, the mechanisms used by the organizations to
appraise his potential and the results of such an appraisal.

97 | P a g e

LIMITATION OF THE PROJECT

Performance appraisal is one of the most important functions of
personnel management Since the main purpose of organization success
depends on each individuals performance Orgaizational effectiveness can
be determined by the degree of success that an individual employees
have in reaching his/her individual goals. The assessment will give us the
information that how the employees are efficient and effective in
achieving their goals.

OMC is a leading PSU of the state. OMC realizes that performance

appraisal plays a vital part on employees motivation The performance
appraisal system adopted in the organization has three basic purposes to
serve.

It can b used as a tool for reward allocation. Decisions regarding

promotion and other rewards are based on the performance evaluation
It can b used as a mechanism for identifying areas of training and
development.

This will help the organization to identify those persons who have certain
deficiencies in skills or knowledge. By the way of proceeding adequate
training their deficiency can be minimized.

It can also be used as a criticism against which selection device

and development programmers are validated.

98 | P a g e

The development of a valid, reliable and bias free performance

appraisal system can create a good atmosphere, a co-operative
environment and a better workable organizational climate.

In OMC the performance appraisal is being done by the personnel

department. The structured appraisal method is being followed here.
The performance appraisal system takes into consideration the
qualities like nature of job performance, skills, specific job behavior,
personal characteristics and development needs. The individual
performance appraisal has been mode after a regular interval so that
the desired behavior could be maintained. This also helps the
organization to satisfy the needs and the aspirations of the individual
by providing more facilities improved working conditions and career
advancement. Performance appraisal is concurred with determining
the differences or performance among the employees working in the
organization. The evaluation is normally done by the individual
immediate superior in the organization which in turn is reviewed by
his supervisor (i.e. the reviewing officer).

The making of appraisal ratings has a beneficial effect both on the

person doing the appraisal and the person being appraised.

Before introducing the PAS the management has set four criterias for
effective performance appraisal.

Employees should actively participate in the evaluation and

development process.
99 | P a g e

Supervisors should possess constructive and helpful attitude

towards performance appraisal system.

The mutually set goals must be realistic.

The supervisor should possess adequate knowledge about the

employees job and performance.

Keeping in view these four criteria the management has developed the
performance appraisal form which helps the employees to set their goals.
The performance appraisal system is different for the executive and the
non-executives. For executives they have self appraisal and for the non
executives they have confidential character roll.

In the self appraisal system the appraise becomes the own appraiser to
that employee first can rate himself in which position he is. If the
appraiser finds any shortcomings in the knowledge and skill of the
employee then he ties to make the employee aware of the department
sits with personnel head to finalize the steps to be taken for overcoming
the deficiency/deficiencies.

The system is ore objective and gives due weightage to the various
attributes which contribute to high performance team efforts and
achievement.

This

also

helps

role

analysis,

identification

of

key

performance areas and potentials for career progression. These things

are communicated to the technicians to make aware that what is
expected of them.

Before the establishment of the performance standards, the supervisors

are consulted to find out which factors to be incorporated, weights and
100 | P a g e

points to be given to each factor. All these factors were indicated in the
appraisal form to be used for appraising the performance of the
employees. Thus, the appraisal form is highly sophisticated to measure
the actual performance of the employees.

The printed form contains employees characteristics like job knowledge,

performance of duties, concern for safety and environment, group
effectiveness, lateral co-ordination, development of sub-ordinates selfdiscipline and reliability, initiative, judgment, innovativeness cost/time
control and communication etc. different scales are established for each
of these specific factors. The immediate supervisor would fill the form for
each of these who directly report to him by measuring the factors on a
continuous scale for each person to determine his place somewhere
along the continuum.

The sources of information used by the appraiser immediate superior to

measure the actual performance are personal observation, statistical
reports, and written reports. The appraiser would be answerable to his
superior /reviewing officer.

If the enhanced performances are determined and if the score decreased

the reasons that led hiss performance below expectations are analyzed.

In case the performance is below the standard then it is being

communicated to the concerned employee but not in other cases.

101 | P a g e

THE PREVAILING SYSTEM SUFFERS FROM NUEROUS :

SHORT COMINGS SUCH AS

1. The appraisal system is more an administrative discharge than a

motivational force. Because it emphasizes on salary increase,
adjustments, promotions, placements, manpower planning etc. but
neglects goal achievement, role clarity, efficiency and effectiveness.
2. Since the criteria for judgment is not based on logical analyses of
facts there is possibility that the decisions are not free of prejudice
and ulterior motives.
3. Some appraises even derived benefits out of the halo effect of
the appraiser.
4. There is a saying to err is human, to forgive is divine
5. In the event of frequent-management personnel changes it is
possible that some of the vital information will be lost.
6. Lack of a well developed feedback system sometimes frustrates the
appraisee. As the management dont inform the appraisee about
his performance except in case his performance except in case his
performance is adverse (i.e. poor).

102 | P a g e

PAY SCALE CHART

EXECUTIVE
Grade

Scale w.e.f. 01.05.1989

E-0

Consolidated

E-1

Rs.2100-75-2475-85-2900-EB-

Scale w.e.f 01.01. 1996

Rs.7300-200-10500

100-3600
E-2

Rs.2400-90-2940-100-3640-EB-

Rs.8500-275-14000

110-4300
E-3

Rs.2900-100-4000-EB-125-4500

Rs.9350-325-14550

E-4

Rs.3300-110-3960-125-4210-EB-

Rs.10000-325-15200

135-1750
E-5

Rs.3700-125-4700-150-5000

Rs.12000-375-16500

E-6

Rs.4500-150-5700

Rs14,300-400-18300

E-7

Rs.4800-150-5700-200-6300

Rs.15100-400-15500

E-8

Rs.5100-1500-5700-200-6500

Rs.16400-450-20000

103 | P a g e

NON-EXECUTIVES
SS-2

Rs.825-14-965-EB-16-981-17-1100

SS-1

Rs.875-15-995-EB-17-1063-18-1225

S-3

Rs.925-20-1125-EB-25-1400

S-2

Rs.975-20-1075-25-1200-EB-301500
Rs.1075-25-1250-30-1520-EB-351800
Rs.1230-30-1560-EB-40-2080
Rs.1300-40-1820-EB-45-2000-502200
Rs.1350-40-1550-45-1775-EB-452000-50-2200
Rs.1450-45-1570-50-2220-EB-552550
Rs.1550-50-1850-55-2125-EB-602725
Rs.1650-55-1760-2300-EB-70-3000
Rs.1800-60-2040-65-2365-70-2575EB-75-3250

S-1
HS-5
HS-4
HS-3
HS-2
HS-1
Sup-2
Sup-1

Rs.2750-70-3800-754175
Rs.2900-75-3650-804450
Rs.3050-75-3950-854630
Rs.3200-85-4900
Rs.3600-100-5600
Rs.4100-100-6100
Rs4300-115-6600
Rs4500-125-7000
Rs.5000-150-8000
Rs.5300-150-8300
Rs.5500-175-9000
Rs.5900-200-9700

104 | P a g e

LIST OF DIRETORS OF ORISSA MNING CORPORATION LTD. AS ON

20.9.2005 (DATE OF 48TH ADJOURNED AGM)

1. Sri Bhaskar Chatterjee

IAS

Chairman OMC Limited

2. Sri B.K.Pattnaik

IAS

Director

3. Sri P.R. Mohanty

IFS

Director

4. Sri K.C Badu

IFS

Director

5. Sri S.N. Sarangi

IAS

Director

6. Sri C.R. Das

Director

7. Sri P. Parvathisem

Director

8. Sri D.K. Roy

Director

9. Dr. S. Acharya

Director

10.Sri Sanjeev Chopra, IAS

Managing Director, OMC

Limited.

105 | P a g e

HEAD OF DEPARTMENTS

GM (P&A)

K.C. Sahu

ED(F&E) A.K.

Tayswal (IFS)

GM(F&A)

M.Ahmed

Special officer cum

OSD(Corporate
Communication)

. Dillip Routrai

DGM (Mining)

N.C.Sahoo

AGM (Project)
P. K Bhatacharya

DGM (Geology and Sales)

J. Mishra

Sr. Manager L.D.

Behera (Civil)

GMC (ERP)

P.K. Bose

DGM (Materials)

P.K. Dash

Project Manager

P.K. Bose

Company Secretary

J.B. Das

Chief Security officer (CSO) Major KK. ****

Plant

Regional Manager

Daitari

N.K. Sahoo

Jajpur

Nimai Ch. Sahu

Bangur

N. Pattnaik

Kandharmardhan

P.C. Mohapatra

Kilda

B.K. Nayak

106 | P a g e

SUMMARY

Orissa , truly, is a vast treasure trove of mineral resources having about

98% of the chromites, 71 % of the bauxite, 33% of the iron-ore and
32% of the manganese ore resources of India.

The Orissa Mining corporation Ltd. was jointly established by the Union
and State Governments in 1956. It was the first PSU in the Mining sector
in India . By 1962, OM became wholly state owned.

OMC possesses a resource of 400 million tones of iron-ore, 19 million

tones of manganese ore, 28 million tones of Chromite, 260 million tones
of bauxite, 19 million tones of lime stones and other minerals. OMC
operates eleven iron-ore mines, five chrome ore mines, three manganese
mines and one limestone mines.

OMC is operating 3 leases in Kalahandi district for semi-precious stone

.OMC also few quarry leases for coloured and black varieties of granite
dimension stone in the state.

The Daitari

Iron Ore Project is the flagship of OMCs operations. The

Daitari Plant principally feeds Neelachal Ispat Nigam for supply of ironore.

OMC continues to maintain Orissas Global connection through export of

minerals from Paradeep port.
107 | P a g e

OMC spends a substantial amount in surrounding villages by way of

construction of school/college buildings, laboratory, library etc.
HRD are the richest wealth of OMC.

This dissertation relating to the topic of Performance Appraisal is

conducted in the Corporate Office of OMC, Bhubaneswar.

The entire staff position of the head office is about 398. The performance
appraisal is carried out by the personnel department of OMC. A
structured method is being followed here. The performance evaluation is
normally done by the immediate superior of an individual in the
organization which is again reviewed by the reviewing officer . The P.A.S.
is different for the

executives and the non-executives. For executives

they have self-appraisal and for non-executives they have CCR . In the
self appraisal system the appraise becomes his own appraiser. For nonexecutives like class IV employees and Class-III employees, annual CCRs
are recorded and maintained. The CCRs are to be written by the
immediate superior (Reporting Authority) of the individual and then after
it has to be counter signed by the countersigning authority. Then after
that it has to be signed by the Accepting Authority.

For the completion of my dissertation the date collected are analyzed.

Initially structured questionnaire were prepared and distributed amongst
both the executives and non-executives. 75 persons were taken as
respondents from each cadre. i.e. executives and non executives. Basing

108 | P a g e

on their responses a detailed analysis and data interpretations is done

in this report.

According to the responses provided by the executives, it is clear that the

PA system of OMC provides for urging the strengths and weakness of the
employees. The majority of them are in favour of training facilities to
develop the strength of the employees. The whole system is a closed
one. The PAS in OMC is a criterion for promotion. The standard of
performance is established by the management only. Finally, the
management do not follow the 3600 appraisal system.

Coming to the responses given by the non-executives, they said that the
present PAS is an impartial system and they do have belief and faith on
their appraise. Some said the system is scientific whereas for some it is
not. They also accepted that the appraisal system helps them in
promotional grounds. Finally, the respondents feel that this appraisal
should be more scientific as compared to the present system.

It is clearly visible that the employees of OMC are satisfied in every

aspect, but as human wants are unlimited, they employees are aspiring
for more and more in every respect.

109 | P a g e

CONCLUSION

From the study conducted at OMC it is evident that ERP has been
implemented here in stages and all the modules are yet to be
implemented. Even with this earlier stage the organization has started
reaping its benefits. The organization is now integrated in various aspects
with al its units that spread wide apart in remote regions. By virtue
change

faces resistance so also OMC faced resistance from the ERP

implementation. These issues were later resolved and the employees are
now well acquainted with the legacy system that provides ease of use to
all its users. Although the ERP is now being implemented for the use of
executives only the non-executives are finding the sister useful and
efficient and long for such a system be made available for their use too.
It is solely the responsibility of top management to look in to the needs
of the organization and equip itself in this

fast changing competitive

environment of business.

110 | P a g e

DATA FINDINGS AND INTERPRETATIONS :

Employees are satisfied with the new system

The organization can now communicate with its customers and
suppliers more effectively and efficiently.
Quantum leaps in performance reflected though the percentage
change in turn over and various awards and recognitions that it has
earned over years.
Reduced time for activity.
The organization it restucted

to cope up with technological

advancements.

SUGGESTIONS AND RECOMMENDATION:

1. The non-executives apart from the executives must also be
involved in the system carry out their activities through ERP
2. The employees or the beneficiaries who are using the system must
be continuously referred for the improvement of the system. A feed
back session should be initiated.
3. The top management should take initiative to regularly upgrade the
system and provide training to the key users to that they handle
the system properly.

RECOMMENDATIONS:
In spite of having positive remarks about Orissa Mining Corporation Ltd,
there are certain suggestions or recommendations which can be made .
Despite OMC has taken several tools and techniques for improvements of
111 | P a g e

human productivity and work commitment. It has still to do some more

things

towards

the

improvements

of

work

conditions

and

work

restructuring.
As we have already discressed that performance appraisals its not only
the analysis of performance but also it depends upon many other factors
related with HR system and after going through all the systems of
performance appraisal and analyzing the questionnaires filled as well as
incorporating the views of the respondents during the interview sessions,
the following steps can be taken to make the existing performance
appraisal system at once more effective and efficient.

The management should be ore participative

Timely completion of the appraisal should be ensured so as to
serve its purpose well.
Appraisee getting excellent ratings should be adequately rewarded.
Work

scheduled

should

be

strictly

adhered

and

should

be

completed in time.
Time to time proper training and learning need, relevant to the job
should be addressed to adopt new changes.
Programmes and policies should be initiated to get maximum
productivity.
There should be transparency relating to every aspect like
performance, appraisals, reward, promotion so as to
equity

among

the

employees

otherwise

there

maintain
might

be

dissatisfaction.

112 | P a g e

BIBLOGRAPHY

Human Resource Planning V.S.P RAO

Human Resource Management-V.S.P RAO

Once procedures for recording and maintenance of CCR of group B

officer of the government..Hand book

Morale & Motivation- V.S.P RAO

Human Resource Development..INTERNET
Training and Development- V.S.P RAO
Performance Appraisal system-Internet and, HAND BOOK:

PERIODICALS
OMC Annual Report
OMC News letter

WEBSITES
www.orissamining.com
www.google.com
www.success.dircon.co.uk/appraial

BROCHURE AND ANNUAL REPORT

SL NO.

YEAR

NAME OF THE REPORT

PUBLISHER

01

2003-04

48TH Annual Report

OMC, Odisha

02

2006-07

51th Annual Report

OMC, Odisha

03

2007

Ground Reality

OMC, Odisha

113 | P a g e

ANNEXURE
The Orissa Mining Corporation Limited
(A Government of Orissa Undertaking)
BHUBANESWAR

INSTRUCTIONS ON RECORDING COUNTERSIGNING

&

MAINTENANCE OF CONFIDENTIAL CHARACTER ROLLS

114 | P a g e

THE ORISSA MINING CORORATION LTD.

(A GOVT. OF ORISSA UNDERTAKING)
BHUBANESWAR
NO 1/CCR/OMC/78

Dated the 30th

August 1978

Recently certain structural changes have been made in the organizational

set up of the Corporation instructions issued in the past regarding
maintenance of CCRs therefore need revision. The following instructions
are issued in regard to reporting , countersigning and maintenance of
confidential Character Rolls.

1. Confidential report assessing the performance, character, conduct

and qualities of an employee of the corporation shall be written for
each financial year within 3 months of the close of the said year.

2. A confidential report shall also be written when either the reporting

authority or the employee of the corporation reported upon hands
over or relinquishes charges of the post and in such a case it shall
be written immediately after the handing over /relinquishment of
charge of the post and not later than a fortnight after such handing
over or relinquishment.

3. While recording the remarks, a clear mention should be made of

the period/periods with dates to which the report of the reporting

115 | P a g e

officer and the countersigning officer relates. The period should not
be mentioned as six months, eight months etc.

4. The name of the officer /employee reported upon should be written

in full. The name should not be written in an abbreviated manner
leaving scope for confusion . The correct and full name should be
mentioned with his designation grade pay etc as per the prescribed
form.
5. The names and designations of the ****** and countersigning
officers should be indicated legibly in block letters or by a rubber
stamp below their signature on the reports
6. In cases where the report is not to be recorded as the officer/staff
reported upon was on leave. Under suspension or worked for less
than four months under the officer concerned a suitable certificate
to that effect may be recorded in the CCR folder with No remarks
since the reporting officer was
i)

On leave

ii)

Under suspension

iii)

Otherwise absent

iv)

Has not served for the minimum 4 months and sent to the
appropriate authority for completion of his CCR dossier.

7. Where for any reason it is not possible to obtain remarks of the

countersigning officer on account of his retirement , death etc. the
116 | P a g e

reasons may be recorded briefly on the report itself to avoid further

correspondence . It is not necessary to mention third in the
forwarding letter

8. Where for any reason it is not possible to have the remarks of the
reporting officer because of his retirement, death or transfer
without seeing the work of the officer/staff reported upon for more
than 4 months, the remarks may e recorded by the countersigning
officer direct (making a brief mention of the above circumstance) in
such cases the period served under the countersigning officer
should be clearly mentioned.

9. At times the remarks are written either in pencil or illegibly. This

should not be done. The remarks should be recorded in ink legibly.
Any correction or overwriting should be avoided.
10.

The entries of an officer/employee reported upon should be

recorded in the CCR immediately after the close of the financial

year and sent to the countersigning authority immediately but not
later than the 15th of May every year. The countersigning authority
after necessary countersignature shall take appropriate steps for
communication of adverse remarks if any and /or safe custody
communication of adverse remarks is an absolute necessity. Delay
in receipt of the confidential reports leads to corresponding delay in
communication of adverse remarks is an absolute necessity Delay

117 | P a g e

in receipt of the confidential reports leads to corresponding delay in

communication of adverse remarks to the concerned officer/staff.
11.

The remarks should not be vague so as to have any doubt

regarding

the

work/conduct

of

the

officer/employee.

While

communicating such adverse remarks the salient good points

should also be mentioned to enable the officer to get a full picture
of his merits and demerits.
12.

There are certain officer who function under dual control. For

instance, the Accounts officer or the Asst Accounts Officer in the

field are to advise their respective General Manager/Regional
Manager in accounts matters and have also to ensure that all rules
and procedures prescribed by the management in the Head Office
are strictly adhered to . The work of such officers should be
assessed

both

by

the

respective

General

Manager/Regional

Managers and by the Chief Accounts Officer.

13.

In respect of all such officers/employees for whom the

countersigning authority is at the Head office the CCRs will be

maintain and reviewed in the Head officer CCRs will be maintained
and reviewed by the General Manager /Regional Managers/Mines
Manager . Gandhamardan with whom they are concerned.
They will send a statement by 30th June of each year certifying
a) That the CCRs have al been written and countersigned
b) adverse remarks have been communicated and giving

118 | P a g e

c) Instances where these two actions have not been taken , giving
reasons for the same.

14.

It shall

be the duty of he reporting officers either at the

headquarters in the field to arrange/procure necessary/required

no. of blank CCR forms by way of cyclostyling/printing (unless old
forms undergo changes) and for filling up the entries without
waiting for any Head office instructions in the regard.

15.

It is seen that some officers/employees while making

representations against the communication of adverse remarks are

requesting for specific instances on the basis of which such
remarks had been the recorded in their confidential character rolls
for a particular year. Confidential remarks are recorded on the
general impression of the reporting officer on the work and conduct
of an officer reported upon. It is generally not possible to cite
instance as a proof of the observations of the reporting or the
countersigning officer if such observations are of a general nature .
It is desirable that officer reported upon should profit by such
observations rather than enter into arguments and represent to
expunge the remarks.

119 | P a g e

Reporting officers should exercise good dispassion and complete

fair mindedness in making CCR entries, as the career of their
subordinates is made or unmade on the basis of such remarks.

Any deviation from the instructions mentioned above which would

cause dislocation in the official transaction would be viewed
seriously.

Sd/ A.M.R. Dalwai,

CHAIRMAN

120 | P a g e

FOR HEADQUARTERS

Sl.

Designation of he

No. officers

Reporting

Date of

Countersigning

authority

reporting authority
remarks

Director & MC/Officer-in- Chairman

15th April

charge(P&E) Financial

each year

Chairman

Adviser-cum-Chief
Geologist/Production
Superintendent/States
superintendent /General
Manager/Regional
Manager(except RM
Daitari)/Materials
Managers/Administrative
Officer (II)/Assistant
Secretary/Public
Relation
Officer/Vigilance
officer/Medical
Officer/PA to Chairman
2.

Senior Geologist (HO)

Chief Geologist

Do

Do

3.

Account officer

FA cum-CAO

Do

Do

4.

Technical

Production

Do

Do

officer/Geologist

Superintendent

Do

Do

Production Wing
5.

Asst. Store and

Material

121 | P a g e

Purchase Officer

Manager

6.

Asst. Engineer Civil

OIC (P&E)

Do

Do

7.

Supd issue and Records

Admn officer II

Do

Do

8.

Dy.

Do

Do

officer Do

Do

Sales Sales supat

Superintendent
9.

Labour Welfare

Admn.

officer/Jr. Administrative

(I)

officer
10

11.

Asst. Accounts Officers

Accounts

15th

officers

each year

Diarist/Typist/Asst of

Admn

General Section/PBX

(I)

officer Do

April FA-cum-CAO

Chairman (in
cases hose pay

operator-cum-

exceeds Rs.

Receptionist/Staff of

500/-

Guest House
12.

All class III and IV

Immediate

Do

Sectional head

employees at HO

controlling

of respective

including Sub Asst

officer

section

Engineers Surveyors

respective

Head Draughtsman Sr.

section

Research Assistant etc.

122 | P a g e

FOR CAMPS/PROJECTS
ANNEXUREB
Sl

Designation of the

Reporting authority

No. officers

Date of

Countersigning

reporting

authority

remarks
1.

Mines Managers Gr I

General

15th April

and II

Manager/Regional

each year

Chairman

Manager
2.

3.

Vocational Training

Mines Manage Gr.

officer /Mines Manager

I /General

Gr. II working as Asst

Manager/Regional

Manager

Manager

Executive Engineer

General Manager

(Mech)/Plant/ (Elect)/

Daitari

Do

Chairman

Do

Chairman

Do

Chairman

Do

Chairman

(Design)/Store and
Pruchase
officer/Accounts
Officer/Admn
officer/medical
officer/Labour welfare
officer/Security officer
4.

Executive engineers

Concerned Regional

posted under the

Managers

regions other than

Daitari
5.

Senior

Regional Manager

123 | P a g e

6.

7.

Geologist/Geologist

Chief Geologist

Asst. Geologist

Senior Geologist

working under Sr.

Regional Manager or

Geologist

Gen Manager

Geologist /Asst

Do

Chief Geologist

Chief Geologist

Do

Chairman

General

Do

Chairman

Accounts officer and

15 April

Chairman

GM and RM

each year

Geologist in
independent camps
8.

Account officer

Manager/Regional
Manager and FA
cum-CAO
9.

Asst. Accounts Officer

10.

Chemist/Asst. Chemist

GM/RM and CG

Do

Chairman

11.

Asst. Engineers

Executive Engineer

Do

Chairman

Do

Chairman

Do

Chairman

concerned GM/RM
(as the case may
be)
12.

13.

Shipment officer

Production

paradeep

Superintendent

Jr. Adm. Officer/Mining

GM/RM & Admn

Engineer/Stores

officer (in case of

supervisor

JAO) and GM/RM (in

case of others)

14.

All class III and IV E E

Concerned SPO as

Technical and Non

the case may be (in

Technical staff working

consultation with

GM/RM

124 | P a g e

under EE

Asst Engineers if

(Civil)/Mech.)/(Plant)

any)

(Elect) (Designs)
Stores etc Daitar
15

16.

17.

For all technical and

Mines Manager (in

Do

GM/RM

ministerial employees

consultation with

working under Mines

Asst. Mines Manager

Manager Daitari

if any)

Staff working under

Admn. officer/JAO

Do

GM/RM

General section Daitari

as the case may be

Staff working in

Concerned AD

Do

GM/RM

Employees (technical

Concerned EE (in

Do

GM/RM

and non-technical)

consultation with

working in workshop

AE. Concerned)

Do

Production

Accounts section
Daitari
18.

Daitari
19

Employees

(technical Shipment officer

and

technical)

non

working
shipment

superintendent

under
officer,

Paradeep
20

STA (Geology)

Geologist/Sr.

Do

Chief Geologist

Do

Regional

Geologist or Mines
Manager(in case
attached to
producing mines)
21.

All class III technical

Mines Manager

125 | P a g e

and Non-technical staff

Manager

working under various

mines
22

All class III and

Immediate

IV/Technical and

controlling officer

Do

Regional
Manager

nontechnical staff
working under various
regional offices
23.

All class III and IV

Camp

technical and non

officer/Geologist

technical staff in

Asst Geologist

Do

Chief Geologist

Do

Regional

various prospecting
camps and
establishments
24.

Employees

at

rail Concerned Plot

heads (supervisory and Manager/Admn

Manager

non supervisory)
25
26.

Medical Officer/Labour Concerned Mines

Welfare officer

Manager/RM

Plot Managers

Regional Manager

Do

Chairman

Do

Chairman

The above has been amended as per the office order mentioned at prepage

126 | P a g e

THE ORISSA MINING CORPORATION LTD.

(A GOVT. OF ORISSA UNDERTAKING)
BHUBANESWAR
No. 15361/OMC/P&A/99

Dtd.

09.07.99

OFFICE ORDER (*)

In super session of all previous order the Annual CCRs of all the
Executives and Non-Executives in Orissa Mining Corporation shall be
reported reviewed an accepted at various level of authorities as detailed
below.

Sl.

Designation

No

Reporting

Reviewing

Accepting

Authority

countersigning Authority
Authority

Non-Executive
1

Class IV Employees

Immediate

Next superior

Concerned

officer under

officer of the

sectional head in

whom working

concerned

case of Head

reporting officer

office
General
Manager/Regiona
l Head in case of
Field units

Class-III employees

Immediate

Next superior

Concerned

(including

officer under

officer of the

sectional head in

Deputations

whom working

concerned

case of Head

reporting officer

Office
127 | P a g e

General
Manager/Regiona
l Head in case of
Field units
EXECUTIVES
1

E-1 TO E-3 Grade

Concerned

Concerned

Managing

(Executives)

sectional Head

General

Director

under whom

Manager in case

working/or Next

of Had

superior officer

office/Regional
Head in case of
Field Units

E-4 to E-6 Grade

The concerned

Managing

(Executive)

General

Director

Chairman

Manager in case
of Head
office/Regional
Head in case of
field units
3
4

E-7 to E-8 Grade

Managing

(Executives)

Director

Executives on

Managing

Deputation at Head

Director

office
Executive on

Managing

deputation in the

Director

Chairman

Chairman

Chairman
Chairman

Chairman

Chairman

Chairman

Field units
5

Other sectional Heads Managing

128 | P a g e

working

Directors

independently at
Head office and Field
units
6

Executives working

Concerned

Managing

Managing

directly under

GM/Regional

Director

Director

GM/Regional

Head/Sr.

Head/Senior Manager

Manager as the

and Other Unit Heads

case may be

Further it is also decided that all the Executives of the corporation should
submit their self Appraisal Form on or before 30 th April every year in case
they fail to do so the initiating authority may give him time till 15 th May
and if by that time also the officer concerned fails to submit the Appraisal
form the initiating officer may record his remarks and send it to the
counter signing authority in that case the officer reported upon will have
no change to object since he did not avail the opportunity to indicate the
self Assessment.

This will also come into force with immediate effect and supersedes all
previous orders/circulars in this regard.

129 | P a g e

By order of Chairman.

Sd/ K.C. Mohanty

General Manager (P & A)

Memo No. 15362/OMC/P7A/99

Dated 9.7.99
Copy to General Manager Barbil/Dy General Manager(M), Daitari and JK
Road

/Sr.

Manager(M)

Gandhamardan/Sr

Manager

(G)

Rayagada/Manager(G). Bhawanipatna Barbil JK Roas /Shipment officer

Paradeep/All

sectional

Heads

at

Head

Office/Private

secretary

to

Managing Director for information and necessary action.

Land Officer

130 | P a g e

CHARACTER ROLL FOR OFFICERS

Name of the Officer _____________________________________ year

______________
Designation/Rank
___________________________________________________ Station
To which posted during the year
_____________________________________________

Period under reporting officer

Period under

countersigning officer
___________________________
______________________________

1 (a) REPORTING ON QUALITIES, ABILITIES AND PERFORMANCE

Report under this section should be in narrative form and should cover
administrative ability power of taking responsibility zeal. Official conduct
and control of staff
It should also mention the officers knowledge of and performance in the
work cone in the department/or branch (including note of any special
talent)

1 (b) Report on Technical competence/work (for technical officers onlyshould be a comprehensive note not a more good. bad etc.
131 | P a g e

II. STEPS TAKEN TO POINT OUT DEFECTS AND RESULTS

Date _________________________

Signed

________________________
Designation
_____________________

III. COUNTERSIGNING OFFICERS REMARKS

General Remarks

I have seen little/some /a good deal of the work of this officer and
subject to the notes against each item and to any general remarks
above, agree with the remarks of the reporting officer

Signed
______________________
Date _____________________

(Next superior

Authority)
Designation
______________________

132 | P a g e

CHARACTER ROLL FORM FOR TECHNICAL

AND NON-TECHNICAL EMPLOYEES

ANNUAL REPORT

Name ______________________________Year _________ Rank

_________

Station to which posted an branches in which employed and period

served in each during the year.
Period served under the Reporting Officer during the year
Period served under the countersigning officer

II. Report on qualities and performance of duties.

1. Administrative ability
2. Power of staff
3. Control of staff
4. Official conduct
5. Zeal
III.
No.

Knowledge

Outstanding Good

Average

Below
Average

a.
b.
c.
d.
e.
133 | P a g e

IV. Integrity (Before making any entry under this head very careful
thought should be given only which adequate ground exists for making
an adverse entry should such entry be made where it is merely hearsay
no adverse entry should be made where it is merely hearsay. No
adverse entry should be made where specific instances of doubtful
integrity are there they should be mentioned.

V. Whether steps wee taken by the reporting officer to point out defects
to the officer concerned noticed in his work during the year.

VI. Reporting Officers remarks

Signed
Date
Designation with rubber
stamp

134 | P a g e

VII. Superior Officers remarks

VIII. Next superior Officers remarks (if any)

Signed
Date
Designation with rubber
stamp

IX. Next superior officers remarks (if any)

Signed
Date
Designation with office
seal

135 | P a g e

REPORT ON THE WORK AND CONDUCT OF CLASS IV STAFF

PART-I
1. Name

:
_______________________________

2. Period to which the entries relate

________________________________
3. Post hld

________________________________
4. Age

:
________________________________

5. Present pay

________________________________
6. Educational Qualification

________________________________
7. Branch to which/officer to whom attached
________________________________
8. Date of present posting

________________________________
9. Can he read and write Hindi

________________________________

136 | P a g e

PART-II
1. Observation on
i) Intelligence
ii) Amenability to discipline
iii) Punctuality
v) Devotion to duty
1. Integrity (Before making any entry under this head very careful
thought should be given. Only when adequate ground exists for
making an adverse entry should such entry be made. Where it is
merely hearsay, no adverse entry should be made Where it is
merely hearsay, no adverse entry should be made. Where specific
instances of doubtful integrity are there they should be
mentioned).
2. Is he fit for promotion to the next higher grade
3. Any other remarks
Date

Signature and

designation of
Reporting Officer

137 | P a g e

CONFIDENTIAL

APPRAISAL

FORM: EXECUTIVES

ORISSA MINING CORPORATION LIMITED

Annual Performance Appraisal
200200.

Name
__________________________________________________________
________
Designation
__________________________________________________________
____
Unit/Office
__________________________________________________________
____

138 | P a g e

Date of Joining in OMC LTD

_______________________________________________
Date of Joining in OMC LTD.
______________________________________________
Date of Entry to Present Grade
_____________________________________________

(Details to be filled in by the personnel Department)

139 | P a g e

PART-I
SELF-APPRAISAL

1.1

Indicate briefly an clearly the quantitative/qualitative/financial

targets and objectives set by yourself/set for you and your achievements

Items/targets/objectives
Achievement

i)

ii)

iii)

iv)

v)

vi)

1.2 Mention constraints in any faced in achieving your targets Also

describe the steps you have taken to overcome them.
140 | P a g e

1.3 Details of any special task carried out/introduction of any innovation

in the job or suggestions put up to that effect.

1.4 Training/guidance that you think will help you in improving your
performance (priority wise)

1.5 Suggestion ass to the skill/jobs where you can be better utilized

1.6 Give details of work you have done/initiative you have taken in the
matter of safety, environment, pollution control and other social issues.

1.7 Give details of your performance of special duties assigned to you

during the current year.

Signature of the Appraisee

Date

141 | P a g e

PART II
APPRAISAL BY REPORTING OFFICER

2.1 Length of service of the appraise under the reporting officer during
the current year.
From. To .
2.2 Comment on part-I (Self appraisal filled in by the appraise) which
must specifically mention your degree of agreement with answer and
given your further observations on part-I, if any.

2.3 Indicate your appraisal of the executives performance and

capabilities by placing a tick mark ( ) in the appropriate column. (Note
that the scores will approximately indicate as follows.
1) Poor 2) Average 3) Good 4) Excellent

5) Outstanding

2.3.1 TECHNICAL SKILLS

SCALE POINT
i) Job knowledge (technical and professional

knowledge for present job)

ii) Performance of duties (work output and
quality of work; target/performance norms)
iii) Concern for safety and environment
(adherence to safety rules and regulations,
house keeping, environment upgrading and
pollution control
Total points A
142 | P a g e

Score A = Weight A x total points A = ----------------------- x

------------------- =

E1/E2

E3/E4

Weighting A

E5/E6
14

E7/E8
13

10

2.3.2 HUMAN RELATIONS SKILLS

SCALE POINT
i) Group effectiveness (ability to work

effectively with superior, subordinates and

colleagues. Effective control and utilization of
subordinates maintenance of discipline,
teamwork etc.)

ii) Lateral coordination (relationship with other

interacting department and degree of
coordination/co-operation achieved
iii) Development of subordinates (efforts to
develop subordinates by guidance, training and
delegation.
iv)Self-discipline and reliability (adherence to
company policy, rules and systems and ability
to remain unflustered by work pressure,
crises/external pressure.
Total Points B
143 | P a g e

Score B = Weightage B x total points B = ---------------- x

--------------- =

Weighting B

E1/E2

E3/E4

E5/E6

E7/E8

2.3.3 CONCEPTUAL SKILLS

SCALE POINT
i) Initiative (Ability to be self reliant
and move forward on a task without
waiting for outside direction/directives)
ii) Judgment ( Identification of
problems formulating feasible
alternatives and making decisions
iii) Innovativeness (Ability to come up
with new ideas giving the concrete
shape and its adoption to improved
operational efficiency and
effectiveness).
iv) Cost/time control (Awareness of
cost/time aspects of the job, optimum
utilization of available resources /time.
v)Communication (ability to express
clearly and precisely verbally and also
in writing in official matters.
Total Points C
144 | P a g e

Score C = Weightage C x total points C = ---------------- x

--------------- =

Weighting C

E1/E2

E3/E4

E5/E6

E7/E8

2.4 OVERALL APPRAISAL: Considering he terms of appraisal under para

2.3 what is the appraisees overall score ?

Overall score = Score A + Score B + ScoreC

= -----------------+-------------------+----------------- =
-----------------------------------

Overall rating to be assigned to all executives on the basis of overall

score. The score renge is given below.

Rating

Score range

Poor

Below 149

Average

149-247

Good

248-346

Excellent

347-445

Outstanding

446 and above

145 | P a g e

OVERALL RATING :

Poor

Average

Good

Excellent

Outstanding

2.5.1 INTEGRITY :Above board/questionable

If questionable, supporting evidence to be furnished

2.5.2 DEPENDABILITY

2.5.3 State of health and aptitude for hard work:

6. Any adverse remarks including penalties imposed or

warning/displeasure communicated.

7. Review discussion with appraise to discuss performance against

target/objectives jointly

set, shortfalls and shortcomings reported for

improvement to the appraise.

Signature of Reporting Officer

Name:
Designation:
146 | P a g e

PART-III

POTENTIAL FOR CAREER PROGRESSION

(TO BE FILLED IN BY REPORTING OFFICER)

3.1 Advance knowledge and skills, organizing ability, effectiveness in

follow up actions, initiative, effectiveness as a leader of men, ability to
train and develop subordinates, please indicate on the basis of
demonstrated strength and weakness.

3.2 Indicate if he has potential for under taking jobs in other functions,
please state areas where he can move in the same grade.

3.3

Recommendation about planning the executives future career

progression including special assignment, job rotation etc.

3.4 Assess hid potential for holding next higher position in the same
functional area or any other area, should opportunities arise

SIGNATURE OF THE REPORTINGOFFICER

147 | P a g e

PART-IV

REMARKS OF THE REVIEWING OFFICER

4.1 Length of service of the appraisee under the reviewing officer during
the current year
From ----------------------------------------------- to
-----------------------------------------------

4.2 General remarks about the work of the appraisee with specific
comments, if modification/deletion to the appraisal made by the
reporting officer

4.3 View regarding potential and career progression as in Part-III (if

different from reporting officers assessment . Specific comments be
made

NAME
DESIGNATION
SIGNATURE

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PART-V

REMARKS OF THE ACCEPTING AUTHORITY

5.1 Do you agree with the overall assessment of the reviewing/reporting

officer as the case may be

yes

No

5.2 If No, state your grading supported by specific reason

5.3 General comments if, any

Name

Designation

Signature

with Date

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PART-VI

ASSESSMENT OF TRAINING AND DEVELOPMENT NEEDS

Year

-----------------------------------------------------------------------Name of the Appraisee :

----------------------------------------------------------------------Designation

:------------------------------------------------------

-----------------

Executives up to the level of E3 are generally imparted functional training

and executives of the level of E4 and above are trained in general
management abilities for shouldering higher responsibilities.

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6.1 Specific areas of knowledge/skill and or subjects in which the

appraisee should have formal training/further guidance for improving his
performance.

6.2 Development training afro general development so that he can

shoulder higher responsibilities.

Signature of Reporting
Officer
Name & Designation

Reviewing officers comment on training and development needs of the

appraisee.

Signature of Reviewing
officer
Name and Designation

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QUESTIONNAIRE

Q1. What kind of performance appraisal method do you have?

Ans. Two kinds of performance appraisal method is being fooled in OMC.
One is for executives i.e. self appraisal and another is for non-executive
i.e. confidential roll.

Q2. What are the dimension of P.A n your organization?

A) Administrative B) Self improvement
C) Career planning D) Organisation Development
Ans. As per the responses obtained 47% of respondents feel that the
administrative dimension of P.A is mostly used in OMC.

Q3. The appraisal system adopted in the organization is open or closed ?

Ans. According to my survey I found that 80% of my respondents agree
that the system is closed one.

Q4. What is the frequency or period of appraisal in your organization?

A) Quarterly B) Half-yearly C) Yearly
Ans. 100% of the appraisers say that the period of appraisal in OMC is
one year.

Q5. Does the appraisal help in pay hike? Yes/No ?

Ans. 73% respondents are of the view that the appraisal system do not
help in pay hike.

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Q6. Does the appraisal system help in identifying the training need of
employees ? Yes No
Ans. According to the responses 67% of the respondents the appraisal
system help indentifying the training need of the employees.

Q7. Is the P.A.S regarded as a criterion for promotion? Yes/No

Ans. Majority of the appraisers i.e. 93% agree of the view that the
performance appraisal system is regarded as a criterion for promotion.

Q8. Does the performance help the employees to prepare themselves for
future actions? Yes/No
Ans. 94% of the respondents are of the view that the past performance
help the employees or appraise to prepare themselves for future actions.

Q9. Whether the system identifies the potentials of the employees?

Yes/No
Ans. 53% of the appraisers are of the view that this system identifies the
potential of the employees.

Q10. What are the qualities of the employees taken into account of the
time of appraisal?
A) Knowledge of work
B) Ability to do the work
C) Quality and quantity of output
D) Personal qualities like dependability, adaptability, initiative etc.
E) Special Qualities like self-confidence, leadership etc.

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Ans. As per the responses obtained 53% of the respondents are of the
opinion that the first three qualities such as knowledge of work, ability to
do the work and quality and quantity of output are taken into account at
the time of appraisal.
Q11. Do the employees accept the critical evaluation and modification in
a positive manner? Yes/No.
Ans. 54% of the respondents are of the opinion that the employees
accept the critical evaluation and modification in a positive manner.

Q12.

Whether

the

standard

of

performance

is

established

by

management only or by the joint consultation between the employee and

the management? Yes/No.
Ans. In my opinion I found that 92% respondents favour that the
standard of performance is established by management only. They have
not introduced any joint consultation system between the management
of the standards.

Q13. Does the appraiser get training for conducting the evaluation?
Yes/No
Ans. Majority of he respondents i.e. 88% are of the opinion that they do
not get any training for conducting though evaluation.

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Q14. Do you appraise the employees on

A) Performance B) Quality
C) With vision of the candidate
Ans. 60% of the appraisers are of the view that they appraise the
employees only on their performance.

Q15. Do you follow 3600 appraisal system? Yes/No

Ans. 100 % of the respondents agree that they do not follow the 360 0
appraisal system.

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TABLE FOR APRAISEE

Table-1
Q1. Does the appraisal system impartial to your knowledge ?

OPINION

N=75

Percentage

Strongly Agree

10

12%

Agree

55

74%

10

13%

Undecided
Disagree
Strongly Disagree

Ans. Majority of the respondents i.e. 74% agreed that the present
appraisal system is impartial.

Table-2
Q2. Have you faith and belief in your appraiser ?

OPINION

N=75

Percentage

Strongly Agree

15

120%

Agree

55

73%

Undecided

Disagree

7%

Strongly Disagree

Ans. Majority of the respondents i.e. 73% have faith and belief in their
appraiser. But a minority of respondents i.e. 7% disagreed this view.
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Table-3
Q3. Is the appraisal system scientific?

OPINION

N=75

Percentage

No. of Respondents
Strongly Agree

7%

Agree

15

20%

Undecided

20

27%

Disagree

35

46%

Strongly Disagree

Ans. According to 46% of the respondents the appraisal system is not

scientific while 20% agree as the appraisal system is scientific and 7%
strongly agree and 27% were left undecided

Table-4
Q4. Do you think appraisal system vitalize the promotion process?
OPINION

N=75

Percentage

No. of Respondents
Strongly Agree
Agree
Undecided
Disagree
Strongly Disagree

7%

55

73%

15

20%

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Ans. Majority of the respondents i.e. 73% agree the

appraisal system

vitalize the promotion process while 20% disagree to this

opinion 7%

strongly agree
Table-5
Q5. Does the appraisal system help in identifying the obstacles to
performance ?
OPINION

N=75

Percentage

No. of Respondents
Strongly Agree

7%

Agree

20

27%

Undecided

10

13%

Disagree

40

53%

Strongly Disagree

Ans. According to 53% of the respondents the appraisal system did not
help to identify the obstacles to performance, While 27% agree, 7%
strongly agree and 13% were left undecided.

Table-6
Q6. Do you think the qualities on the basis of which performance is rated
are given equal weightage and importance?
OPINION

N=75

Percentage

No. of Respondents
Strongly Agree
Agree
Undecided
Disagree
Strongly Disagree

7%

55

73%

15

20%

158 | P a g e

Ans. According to 46% of the respondents agree that the qualities on the
basis of which performance is rated are given equal weightage and
importance, While 27% disagree, 7% strongly agree and 20% were left
undecided.

Table-7
Q7. Is your appraiser sometimes blased?
OPINION

N=75

Percentage

No. of Respondents
Strongly Agree
Agree
Undecided
Disagree
Strongly Disagree

35

46%

8%

35

46%

Ans. While 46% agree that the appraiser is sometimes biased, the other
46% is disagreed, the remaining 8% were left undecided.

Table-8
Q8. Is there any provision of appeal if the appraisal is at fault?
OPINION

N=75

Percentage

No. of Respondents
Strongly Agree

10

13%

Agree

35

46%

Undecided

15

20%

Disagree

15

20%
159 | P a g e

Strongly Disagree

Ans. According to 46% of the respondents there is provision of appeal if

the appraisal is at fault. While 20% disagree, 14% strongly agree and
the remaining 20% were left undecided.

Table-9
Q9. Do you think the present system needs any modification of change?

OPINION

N=75

Percentage

No. of Respondents
Strongly Agree
Agree
Undecided
Disagree
Strongly Disagree

7%

50

66%

7%

10

13%

7%

Ans. Majority of the respondents i.e. 66% think that the present system
needs modification.

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Table-10
Q10. Does the system recognizes the potentialities?

OPINION

N=75

Percentage

No. of Respondents
Strongly Agree
Agree
Undecided
Disagree
Strongly Disagree

7%

55

73%

15

20%

Ans. According to 46% of the respondents agree that the system

recognizes the potentialities, while 40% disagree, 7% strongly agree
while the rest 7% were left undecided.

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QUESTIONNAIRE
A study on Performance Appraisal in OMC, Bhubaneswar

Questionnaire for appraiser

Dear Sir/Madam,
I am conducting a study on Performance Appraisal in your organization
as a part of course curriculum of MBA department of GYANA BHARATI
Please take a few minutes to complete this questionnaire. Your response
with respect to the questions will be exclusively used for academic
purpose. I would request you questions will be exclusively used for
academic purpose. I would request you to provide your frank opinion,
information provided shall be kept confidential.

Thank you for your cooperation.

Name

Age

Qualification :
Designation

Grade

Department

Pay scale

Experience

Yours sincerely

RUTUPARNA SAMANTARAY
MBA(4th SEM)

162 | P a g e

QUESTIONS

Q1. What kind of performance appraisal method do you have?

Q2. What are the dimension of PA in your organization?

A) Administrative B) Self improvement
C) Career planning D) Organization Development

Q3. The appraisal system adopted in the organization is open or closed?

Q4. What is the frequency or period of appraisal in your organization?

A) Quarterly B) Half year C) Yearly

Q5. Does the appraisal help in pay hike? Yes/No.

Q6. Does the appraisal system help in identifying the training need of
employees? Yes/No

Q7. Is the PAS regarded as a criterion for promotion ? Yes/No

Q8. Does the performance help the employees to prepare themselves for
future action? Yes/No.

Q9. Whether the system identifies the potentials of the employees?

Yes/No

163 | P a g e

Q10. What are the qualities of the employees taken into account of the
time of appraisal?
A) Knowledge of work
B) Ability to do the work
C) Quality and quantity of output
D) Personal qualities like dependability, adaptability, initiative etc.
E) Special Qualities like self-confidence, leadership etc.

Q11. Do the employees accept the critical evaluation and modification in

a positive manner? Yes/No

Q12.

Whether

the

standard

of

performance

is

established

by

management only or by the joint consultation between the employee and

the management? Yes/No

Q13. Does the appraiser get training for conducting the evaluation?
Yes/No

Q14. Do you appraise the employees on

(A)Performance B) Quality C) With vision of the candidate

Q15. Do you follow 3600 appraisal system? Yes/No

Thanking You

164 | P a g e

ss

QUESTIONAIRE FOR APPRAISE

PERSONAL DATA

PUT A TICK MARK IN THE APROPRIATE BOX

AGE:
i.

Below 25 years

ii.

26 to 35 years

iii.

36 to 45 years

iv.

46 and above

SEX: Male/Female

EDUCATIONAL QUALIFICATION
i.

Matriculation

ii.

Intermediate

iii.

Graduation

iv.

Post Graduation

v.

Any other Professional Qualification

DEPARTMENT:
DESIGNATION:
EXPERIENCE:
i Below 5 years
ii. 6-10 years
iii. 11-15 years
iv. 16-20 years
v. Above 20 years

165 | P a g e

QUESTIONS

1. Does the appraisal system impartial to your knowledge ?

Strongly
Agree

Agree

Undecided

Disagree

Strongly
Disagree

2. Have you faith and belief in your appraiser?

Strongly
Agree

Agree

Undecided

Disagree

Strongly
Disagree

Undecided

Disagree

Strongly
Disagree

3. Is he appraisal system scientific?

Strongly
Agree

Agree

4. Do you think the appraisal system vitalize the promotion process?

Strongly
Agree

Agree

Undecided

Disagree

Strongly
Disagree

5. Does the appraisal system help in identifying the obstacles to

performance ?
Strongly
Agree

Agree

Undecided

Disagree

Strongly
Disagree

6. Do you think the qualities on the basis of which performance is

rated are given equal weightage and importance ?
Strongly
Agree

Agree

Undecided

Disagree

Strongly
Disagree
166 | P a g e

7. Is your appraiser sometimes biased ?

Strongly
Agree

Agree

Undecided

Disagree

Strongly
Disagree

8. Is there any provision of appeal if the appraisal is at fault ?

Strongly
Agree

Agree

Undecided

Disagree

Strongly
Disagree

9. Do you think the present system needs any modification or change

Strongly
Agree

10.

Agree

Undecided

Disagree

Strongly
Disagree

Does the system recognizes the potentialities ?

Strongly
Agree

Agree

Undecided

Disagree

Strongly
Disagree

Thanking you

167 | P a g e