PROJECT SYNOPSIS

TITLE
A study of performance management system in RailTel Corporation of India Limited

INTRODUCTION AND OBJECTIVES OF THE STUDY

Performance management is a process of aligning an organisation’s goals with the employee
goals. It is an ongoing and interactive process that helps employees enhance their capability a
facilitate productivity. The performance evaluation system is an organized set of activities
established to regularly and systematically evaluate employee performance and ensure its
alignment to business metrics.
Performance review aims to determine if an employee is meeting the set standards. The HR
uses the Performance Management System (PMS) to measure the performance. The steps to
review employee performance are as follows:
1. Defining performance goals/ objectives- The performance targets/goals are to be set (for
one year), which is split into monthly or quarterly targets. Performance goals should be
SMART (the principle of Specific, Measurable, Achievable, Realistic and Time-bound).
2. Measuring performance- While it largely involves the assessment of the performance
against the set targets at the end of the assessment period/ performance period, the focus
is on on-going manager’s review of the employee’s performance throughout the year.
3. Feedback and coaching- This focuses on the development needs of the employee that the
manager needs to take care to enable the employee to successfully meet the goals.
Performance is defined as the record of outcomes
produced on a specific job function or activity during a specific time period. While establishing a
PMS, following are considered:
1. Validity of the PMS framework
2. Reliability of the assessment tool
3. Clarity
4. Practicality
The types of appraisal methods are as follows:
 Trait-based appraisal
 Behavior-based appraisal
 Results-based appraisal
An employee can be evaluated individually in the following ways:
 Graphic rating scale
 Forced choice
 Essay evaluation
 Management by objectives(MBO)
  Critical incident technique
 Checklists and weighted checklists
 Behaviourally Anchored Rating Scale (BARS)
Multiple person evaluation can be done in the following ways:
 Ranking
 Paired comparison
 Forced distribution
The benefits of performance appraisal are as follows:
1. It allows employees to understand their performance compared to his/her peers.
2. It allows the organization to set a benchmark.
3. Recognition can range from applauding the hard work to promotion and salary hike.

OBJECTIVES OF THE STUDY

1. To study the process of performance management system followed by RailTel
Corporation of India limited.
2. To study the annual performance appraisal report form used in public sector enterprise
(RailTel).
3. To study the impact and effects of performance management system and career
development of the employee.

PROBLEM STATEMENT ( INCLUDING LITERATURE REVIEW)

As per the recommendations of 2nd Pay Revision Committee (PRC), each Central Public Sector
Enterprise would develop a robust and transparent Performance Management System(PMS).
RailTel Corporation of India Limited already has a system of performance appraisal through
Annual Confidential Report (ACR). It has been decided to do away with the present system of
ACR and to adopt the Annual Performance Appraisal Report (APAR) to strengthen the
Performance Management System as envisaged in recommendations of 2nd PRC. APAR will be
used for evaluating the suitability of executives for confirmation, promotion etc. APAR will be
used for deciding Performance Related Pay in pursuance of para 11 of Deptt. Of Public
Enterprises’”O.M no. 2(70)/80-DPE(WC), dated 26-11-2008.
The salient features of the new APAR/PMS are as under:
1. The new APAR forms will be applicable with the effect from appraisal year 2010-11.
2. Work performance will be evaluated on the basis of Key Result Areas (KRAs) in
measurable terms, i.e., time, quality, percentage etc.
3. Functional or technical competencies are to be formulated as per requirement of each
post.
4. Core Values and Potential Competencies will be as pre-defined in APAR.
5. A ‘Bell Curve Approach’ has to be adopted in grading the executives so that not more
than 10% to 15% of executives of each department are rated as ‘Outstanding’ and 10% pf
of the executives are rated as ‘Poor’. Such a grading will be used for payment of
Performance Related Pay only.