SUMMER TRAINING REPORT

ON
HR POLICY & PERFORMANCE APPRAISAL
IN
GREEN GAS LIMITED

Submitted in partial fulfillment of

MASTERS OF BUSINESS ADMINISTRATION
PROGRAME
Conducted by
G B TECHNICAL UNIVERSITY, LUCKNOW
Under the guidance of Under the guidance of
Ms. AKANKSHA SRIVASTAVA Mr. ASHUTOSH LOHUMI
(Asstt. Professor) (HR Manager)
LBSIMDS (Lucknow) GGL
Submitted By
RICHA RUPALI
MBA III Semester

LAL BAHADUR SHASTRI INSTITUTE OF

MANAGEMENT & DEVELOPMENT STUDIES,
LUCKNOW
PREFACE
1
Summer Training is an internal part of MBA program. It helps the students to understand
the practical aspects of Marketing and Human Resource (HR). As a part of my MBA
program at “Lal Bahadur Shashtri Institute of Management and Development Studies
Lucknow”. I was supposed to work with an organization for a period of 6-8 weeks.

To understand the important aspects of HR, I had chosen GREEN GAS LIMITED,
LUCKNOW. There my work was to propose HR POLICY for the company and do
research on PERFORMANCE APPRAISAL. HR is an important factor of the business
because human is one of the important resource for the organization. That resource
directly and indirectly relates to the organization activities.

Performance appraisal is a continuous and systematic process which is helpful in

measuring actual performance of employee with respect to the standards set by the
company for that particular employee. It is basically concerned with developing inner
potential of an employee and communicating it to the employee.

ACKNOWLEDGEMENT

2
Every work needs to be followed by a deep sense of gratitude to those who made is
through success. It takes the opportunity to thanks all those people who render their
immense help and guidance for completion of this report. Indeed this page of
acknowledgement shall never be able to touch the generosity of those who rendered
their cooperation.

I specially want to thank director of GREEN GAS LIMITED company, Mr. HARSH
MOHAN and managing director Mr. C.D. JOSHI sir who gave an opportunity to
undergo summer training in their organization.

I want to thank Human Resource Manager, Mr. ASHUTOSH LOHUMI who in spite of
his busy schedule and commitment took keen interest in my learning,.

I am extremely grateful to my mentor, Ms. RIDHIMA MOHAN and Ms. NEHA

GAMBHIR for guiding and correcting various documents of mine with attention and
care. They had taken pain to go through the project and make necessary correction as
and when required.

I also want to thanks head of department of LBSIMDS, Prof. TRIPTI BARTHWAL,

my faculty guide Ms. AKANKSHA SRIVASTAVA for enlightening my ways for the
completion of this report. Without her able guidance I would not have been able to
complete this report.

Last but not the least; I also want to thank all the employees of GREEN GAS LIMITED
who immensely contributed me in my research project.

INDEX

TABLE OF CONTENTS
S.No Page No.

3
 1 Executive summary 6
2 Introduction 7

COMPANY PROFILE 8
3 About the company 9
4 Vision & Mission of the 12
5 Business
companyareas 15
6 Financial analysis 19
7 Organizational Structure 20
8 SWOT Analysis 21

HR POLICIES 22
9 HR Policies 23

LITERATURE REVIEW 56
10 Meaning 57
11 Characteristics 58
12 Methods 60

INDEX

TABLE OF CONTENT
S.NO PAGE NO.
13 Benefits 63
4
 14 Common Mistakes 65
15 Techniques used in company 68

RESEAECH METHODOLOGY 71
16 Explanation 72
17 Analysis & Interpretation 75
18 Findings 93
19 Conclusion 94
20 Limitations 95
21 Recommendation 96
22 Suggested Performance 97
Appraisal form

BIBLIOGRAPHY 101
23 Bibliography 102

ANNEXURES 103
24 Questionnaire 104

EXECUTIVE SUMMARY

Performance appraisal is an important HRD mechanism. It is the process of evaluating

the performance of employees in terms of the requirements of the job for which they are
employed for administrative purpose, including suitable placement, selection, promotion,
giving financial rewards and other action which require differential treatment between the

5
members if a group as distinguished from actions affecting all the members equally.
Earlier performance appraisal was considered as a simple and confidential method of
rating the job performance of individual employees by their superiors for the purpose of
giving those remarks and rewards. Early appraisal systems stressed assessment of
personality tracts, which were difficult not only to measure but also to relate
constructively to the job itself. The purpose of performance evaluation is to generate
information to support administrative decisions

It is a powerful tool to calibrate, refine and reward the performance of the employee.
It helps to analyze his achievements and evaluate his contribution towards the
achievements of the overall organization.By focusing the attention on performance,
performance appraisal goes to the heart of personnel management and reflects the
management's interest in the progress of the employee.

Performance Appraisal is being practiced in 90% of the organizations worldwide.

Typically, Performance Appraisal is aims :

 To review the performance of the employees over a given period of time.

 To judge the gap between the actual and the desired performance.

 To help the management in exercising organizational control.

 To diagnose the training and development needs of the future.

INTRODUCTION

The meaning of the word “appraisal” is “to fix a price or value for something”. This is
used in finance in terms such as project appraisal or financial appraisal where a value is
attached to a project. Similarly performance appraisal is a process in which one values
the employee contribution and worth to the organization.

6
Performance appraisal can be defined as a system of measuring employee’s performance
relative to the assigned or agreed objectives. The process starts with the supervisor and or
with the subordinate agreeing on specific objectives that need to be met on an agreed
time period. The objectives that are used in the Performance appraisal stem from the
main organizational objectives that are reduced to Departmental goals and now to
individual goals.

The performance appraisal system has to be transparent and the employee should be
taken into full confidence. In many cases employees themselves are given a chance to
conduct a self-appraisal. Performance appraisal is a case of joint problem solving by the
organization and the employee. However the organization must also take care of future
potential and not get bogged down by current performance.

Normally the immediate supervisor does the appraisal. Some organizations also have a
peer group performance appraisal where colleagues rate the performance.

History of performance appraisal is quiet brief. Its roots in early 20th century can be
traced to tailors pioneer time and motion studies but it is not very helpful, to same may be
said about almost everything in the field of modern human resource management. As a
distinct and formal management procedure used in evaluation of work performance
appraisal really dates from the time of Second World War. Not more than sixty years ago
yet in broader sense the practice of appraisal is the very ancient art. in the scale of things
historical, it might well lay claim to bring the world second oldest profession.

7
 COMPANY PROFILE

GREEN GAS LIMITED

ABOUT THE COMPANY

Green Gas Limited (GGL) is a Joint Venture of GAIL (India) Limited

[GAIL] and Indian Oil Corporation Limited [IOCL].

Description of IOCL and GAIL

INDIAN OIL CORPORATION LIMITED

8
Indian Oil Corporation Ltd. (Indian Oil) was formed in 1964 through the merger of
Indian Oil Company Ltd and Indian Refineries Ltd. Indian Refineries Ltd was formed in
1958, with Feroz Gandhi as Chairman and Indian Oil Company Ltd. was established on
30th June 1959 with Mr. S. Nijalingappa as the first Chairman. In 1964, Indian Oil
commissioned Barauni Refinery and the first petroleum product pipeline from Guwahati.

Indian Oil Corporation Limited (IOCL) is one of the largest oil companies in India. It is
principally engaged in petroleum refining, crude oil and petroleum products pipelines,
marketing of petroleum products, and research and development. In addition, it is also
involved in the exploration of oil and gas and the sale of petroleum products, and
imported crude oil and gas. IOCL mainly operates in India, but has operations in certain
Asian and African countries. The company is headquartered in New Delhi, India. The
company controls 10 of India's 20 refineries.
GAS AUTHORITY OF INDIA LIMITED

GAIL (India) Ltd. is known as Gas Authority of India Ltd. It was set up by the
Government of India in August 1984 to create gas sector infrastructure for sustained
development of the natural gas sector in the country. During its short lifespan GAIL has
achieved several major milestones.

GAIL (India) Ltd. is India's principal gas transmission and marketing company. GAIL is
involved in all aspects of the Natural Gas value chain, which include: Exploration &
Production, Processing, Transmission, Distribution and Marketing, and its related
services. In a scenario where society is increasingly concerned about the impact of
development on environment and Natural gas is one of most clean fuels available, GAIL
has a critical role to play. GAIL is currently spearheading the move to a new era of clean
fuel industrialization by creating a quadrilateral of green energy corridors that connect
major consumption centre in India with major gas fields, LNG terminals and other cross
border gas sourcing points.

SOME OF THE MERGERS OF GAIL (INDIA)

9
 • Central U.P. Gas Limited (CUGL):

• Indraprastha Gas Limited (IGL)

• Green Gas Limited (GGL)

• Mahanagar Gas Limited (MGL)

•
INDIAN OIL GAS AUTHORITY
CORPORATION OF INDIA LIMITED
JOINT VENTURE

GREEN GAS
LIMITED

GREEN GAS LIMITED

JOINT VENTURE OF INDIAN OIL CORPORATION AND GAIL (INDIA)

GREEN GAS LIMITED

It has been incorporated for the implementation of City Gas Projects for supply of Piped
Natural Gas (PNG) to domestic, commercial and industrial Consumers and Compressed
Natural Gas (CNG) to automobile consumers in the cities of Lucknow and Agra.

Corporate Overview

Pursuant to the directive of Honorable Supreme Court of India GAIL had undertaken a
study to supply natural gas to the automobile, industrial, commercial and domestic
Consumers in the cities of Agra and Lucknow to accomplish improvement of its ambient
air quality.

10
Joint Venture agreement (JV) was signed between GAIL (India) Ltd. and Indian Oil
Corporation Limited on May 11, 2005, which was followed by incorporation of Green
Gas Ltd (GGL). The company was incorporated On October 07, 2005, with the objective
of supplying City Gas & CNG in Agra and Lucknow.

Currently, GGL is authorized by the Central Government to lay, build, operate or expand
City Gas Distribution Projects in Lucknow, Agra cities and Taj Trapezium Zone.

GGL try to leave no stone unturned in creating the necessary facilities to cater the City
Gas demand of transport, domestic, industrial and commercial customers in its area of
operation. GGL is committed, aware and fully focused towards Health, Safety, and
Environment (HSE). The company has in place systems and processes that match up with
the best in the world

11
 VISION OF COMPANY

To make Green Gas Limited an unparalleled natural gas distribution company, providing
eco-friendly and clean fuel to transport, domestic, commercial and industrial sectors, with
a total commitment to provide quality service to its customers.

MISSION OF COMPANY

• To provide safe, convenient and reliable gas supply to our customers in transport,
domestic, commercial and industrial sectors.

• To provide a cleaner and environment friendly auto fuel to clients.

• To facilitate conversions of commercial and private vehicles to CNG through

external agencies by

1. Making available the quality kits; and

2. Creating a network of workshops to undertake reliable and speedy

conversion to CNG.

12
 THE COMPANY PRIMARILY AIMS AT

1. Providing safe, convenient & reliable natural gas supply to it's customers in the
domestic and commercial sectors in Lucknow, Agra and Taj Trapezium Zone.

2. Providing a cleaner, environment-friendly alternative as auto fuel to the residents

of Lucknow, Agra and Taj Trapezium Zone.

3. This will considerably bring down the alarmingly high levels of pollution.

The transport sector uses natural gas as Compressed Natural Gas (CNG), while the
Domestic, Commercial and Industrial sectors use it as Piped Natural Gas (PNG).

FUTURE OUTLOOK

13
Green Gas Ltd. has vigorous expansion plans for the implementation of City Gas
Distribution (CGD) projects in its authorized areas. Simultaneously, GGL will strive hard
to explore business opportunities in other parts of the country as well.

GGL will endeavor to provide the complete energy solution by moving beyond the CNG
and PNG applications currently in existence. This would enable GGL to enhance value
for the stakeholders including customers, shareholders and employees.

The need of the hour is to stay focused and stand by its vision and mission while
performing duties so that the dream is transformed into reality. The company is
committed to be a customer-oriented organization by adopting world class operational
practices. It believes in organizational development by strengthening its internal
capabilities and systems.

Recognizing the fact that vehicle owners will not convert their vehicles to CNG until and
unless CNG has been made available in adequate quantity and at many locations across
the city, GGL decided to make CNG available at multiple places and to ramp up the
availability of CNG both in terms of quantity and geographical spread. This will help in
kicking off the conversion process as well as developing the CNG demand.

BUSINESS AREAS

14
 • CNG (Compressed Natural Gas)
• PNG (Piped Natural Gas)

Benefits of CNG:

The distinct advantages of using CNG will build a lasting relationship between CNG and
its customers and will encourage the customers to endeavor the goal of green earth.

CLEAN AND GREEN FUEL

Commonly referred to as the green fuel because of its lead and sulphur free
character, CNG reduces harmful emissions. Being non-corrosive, it enhances the
longevity of spark plugs. Due to the absence of any lead or benzene content in
CNG, the lead fouling of spark plugs and lead or benzene pollutants are
eliminated.

MAINTENANCE ADVANTAGE

Another practical advantage observed is the increased life of lubricating oils, as

CNG does not contaminate and dilute the crankcase oil. Intervals between oil
changes for CNG vehicles are dramatically extended depending on how the
vehicle is used.

PERFORMANCE ADVANTAGE

CNG has an octane rating of 127 and has a slight efficiency advantage over
petrol.

1. SAVINGS

15
 Total cost of ownership per unit of energy generated is less than many other
competitive fuels.

MIXES EVENLY IN AIR

Being a gaseous fuel, CNG mixes easily and evenly in the air unlike the other
liquid and solid fuels that generate lot of pollution on combustion and create lot of
issues while handling.

LOW OPERATIONAL COST

The operational cost of vehicles running on CNG, as compared to those running

on other fuels, is significantly low.

SAFETY

CNG is less likely to auto-ignite on hot surfaces, since it has a high auto-ignition
temperature (540 degrees centigrade) and a narrow range (5%-15%) of
inflammability. It means that if CNG concentration in the air is below 5% or
above 15%, it will not burn. This high ignition temperature and limited
flammability range makes accidental ignition or combustion very unlikely.

Benefits of PNG:

16
 GGL has decided to provide piped natural gas to house hold which shall eliminate
various difficulties faced by domestic customers in receiving filled cylinders for
the kitchen.

1. UNINTERUPTED SUPPLY

The source of ONG supply in Lucknow and Agra is the Hazira-Vijaypur-

Jagdishpur (HVJ) GAIL (INDIA) limited. PNG offers continuous and
adequate supply of natural gas at all times, without any problem storing
LPG in cylinders, hassles related to booking gas with the LPG dealer,
problem of LPG storage, ever increasing problem of LPG etc.

2. UNMATCHED CONVINIENCE

Domestic consumers have to repeatedly undertake the trying task of

booking and rating for delivery of LPG cylinder refill switching over to
PNG renders this entire exercise unnecessary.PNG also eliminates the
TDS routine of checking LPG refill cylinder for suspected leakage, or its
being underrate, at the time of delivery. Moreover, the user is paired the
inconvenience of connecting and disconnecting the LPG cylinder when
out of gas. Precious space occupied by LPG cylinder is also saved.

3. SAFETY

The combustible mixture of natural gas and air does not ignite if the
mixture is leaner than 5% and richer than 15% of air fuel ratio required for
ignition. This narrow inflammability range makes PNG one of the safest
fuel in the world. Natural gas is lighter than air. Therefore in case of a
leaked it just rises and disappears into the air given adequate ventilation.
But LPG being heavier will settle at the bottom near the flow surface. A
large quantity of LPG is stored in liquefied form in the cylinder.PNG in
safer sense PNG installation inside your premises contains only a limited
17
 quantity of natural gas at low pressure that is 21 millibar (mbar). On
leakage LPG expands 250 times, which is not the case with PNG. Supply
in PNG can be switched off through appliance wall (inside the kitchen)
and isolation wall (outside the kitchen) which fully cuts of the gas
supplier.

4. VERSATILE FUELS

Natural gas is being used predominantly as versatile fuel in major cities

catering to domestic and commercial application, as a cooking fuel, for
water heating, space heating, air conditioned etc.

5. ENVIROMENT FRIENDLY

Natural gas is one of the cleanest burning fossil fuel, and helps to clean
and improve the quality of air, especially when used in place of other more
polluting energy sources.

This combustion results in virtually no atmospheric omission of

SULPHUR DIOXIDE and far lower emission of CABON MONOXIDE,
reactive HYDRECARBON and CARBON DIOXIDE, than the
combustion of other fossil fuels. in fact, when natural gas burns
completely it gives out carbon dioxide and water vapors.

FINANCIAL ANALYSIS OF THE COMPANY

18
GGL sale revenue grew by 27% over financial year basis in 2010 driven by NCG
volume. Total volume of CNG solution in lakh kg was 249.56 in the year 2010 as against
221.37 lakh kg in 2009.

The profit after tax margin also increased from 12.32% in 2009 to 13.40% in 2010 lead
by improved EBIDTA margin.

Total fixed asset grew by 20.50% in 2010 as company implemented the steel grid and
established city gas stations both in Agra and Lucknow.

There was secured debt in company’s balance sheet amounting to Rs.26.98 crore.

120000000

100000000

80000000

60000000

40000000

20000000

0
2007-08 2008-09 2009-10 2010-11

Graph showing profit achieved by GGL during the last 3 years and the expected profit of 14% of the
sales based on the number of vehicles being converted to CNG by the end of the financial year 2010-11

ORGANISATIONAL STRUCTURE

19
SWOT ANALYSIS

20
 STRENGTHS WEAKNESS
• Green Gas Limited is the merger of • Being a government sector undertaking
IOCL and GAIL so good brains of both employees are lethargic towards work.
the company are working together to
• A huge number of employees are on
create a difference in the society. contract basis or they are on deputation
from either GAIL or IOCL so they do not
• The concept of providing Pipeline
give there 100% in the job.
Natural Gas is good concept so that
fraud in LPG can be avoided and by
providing Compressed Natural Gas
consumption of ignition by automobiles
is reduced.

OPPORTUNITIES THREATS
• Major opportunity with the company is • Major threat to the organization is
that in Lucknow there is no provision ADANI Brothers.
for Pipeline Natural Gas (PNG) so the
company can establish themselves well • Cost of developing infrastructure for
in the market. Pipeline Natural Gas is very high and
company being new is facing problem
• Due to shortage of fuel to occur in near of finance.
future automobiles made are CNG
driven this is also prove advantageous
to the company in increasing there
market share.

21
 PROPOSED
HR POLICIES

H R POLICIES

PAY SCALE:-

DESIGNATION GRADE MOTHLY SALARY

Trainee M-0 8450/- to 10450/-

22
Sr. Officer M-1 11000/- to 15000/-

Manager M-2 15000/- to 20000/-

Chief Manager M-3 20000/- to 26450/-

DGM M-4 27000/- to 35000/-

GM M-5 35000/- to 45000/-

# Directors

DEPUTATION:-

• In respect of employees posted on deputation to green gas limited from parent

companies i.e. GAIL/IOCL. It is proposed to follow policy of respective parent
company i.e. GAIL/IOCL for perks and benefits which are to be born by
borrowing by borrowing company green gas limited so as to ensure their
emoluments remain enact.
• Regarding those perks/benefits/allowances mentioned in the secondment policy of
parent companies i.e. GAIL/IOCL as to be born by borrowing company i.e.
GREEN GAS LIMITED but not covered in this policy of green gas limited,
employees on secondment shall be entitled for perks and benefits of two higher
levels than their existing grade/level as per their respective company rules.
ANNUAL INCREMENT RULES:-

Increment shall be on the basis of performance ranging from 5 to 15%as in CUGL and on
satisfactory performance officer shall be given in the recommended by controlling officer
and approved by competent authority.

However the limits of the employees getting increment will remain in each category
mentioned below:-

23
PERCENTAGE OF PERFORMANCE INCREMENT MAXIMUM
MARKS PERCENTAGE OF
EMPLOYEES TO
BE AWARDED IN
EACH YEAR

Above 90% Outstanding 15% 10%

Above 85% and Very good 10% 60%

below 90%

Above 70% and Good 8% 20%

below 80%
Below 70% average 5% 10%

HOUSE RENT ALLOWANCE

• Provided to such officers who reside at place other than place provided by the
company due to lack of proper facilities.
• If the officer has not retained the family other than the place of posting in case of
transfer
• House rent allowance will be paid to employee on the basis of type of residing
city which is given as follows:-

Without production of rent receipt

24
 Metros 30% of basic pay

A-class 25% of basic pay

B-1 class 22.5% of basic pay

B-2 class 17.5% of basic pay

C & unclassified 15% of basic pay

A certificate in this regard needs to be furnished

• EMPLOYEES OWNING HOUSES

An employee living in a house owned by him, his wife, children, father or mother
shall also be eligible for HRA under these orders:

In case of an employee who owns a house at a place of duty but resides in

a rented house, HRA shall be paid in respect of the rented house, if
otherwise admissible.

• Where both husband and wife are employees of the Company and posted at the
same station, then either husband or wife can demand for company leased
accommodation. HRA will not be admissible to the spouse. But incase of any
shortfall in rent then the spouse can demand for the balance amount from the
company.
25
TRANSPORT SUBSIDY

• All regular employees of the Company who are not in receipt of reimbursement of
monthly conveyance expenditure or are not provided with Company transport are
eligible for Transport Subsidy.
• Employees are entitled for transport subsidy according to there grade:-
GRADE RATE
M5 2000

M4 2000

M3 1900

M2 1700

M1 1200

M0 1000

TRAVEL/DAILY ALLOWANCES:-

TRAVEL ALLOWANCES:

Mode of travels

M-0/M-1 2nd AC RAIL

M-2/M-3 3rd AC RAIL or economy class air

Provided destination is more than 500kms and overnight journey cannot be

performed.

M-4/M-5 1st AC RAIL or business class by air.

LOCAL TRAVEL DURING THE OFFICIAL TOUR

26
Employees on official tour shall be entitled to undertake travel locally from/ to
airport/railway station/ bus terminus from the place of stay/hotel/g/h/central place or the
destination of business interest as per the following:- o rickshaw

M-2/M-3 actual fare on taxi

M-0/M-1 actual fare on three wheeler aut

M-4/M-5 actual fare of ac taxi or call taxi

Directors Actual Fare vehicle (Honda city/ equivalent)/as arranged by HR

MD/DC, whole time directors shall be provided with company car (Honda city/sx4 )
subject to the declaration that no conveyance maintenance charges or equivalent is
availed from parent company or GREEN GAS LIMITED.GREEN GAS LIMITED will
also bear expenses on driver salary and running and maintenance of the vehicle as per
parent company sales.

TRANSFER BENEFITS

• Officer will be required to visit new place so accommodation, admission, taken

care.
• JOINING TIME
Joining time is the extra time given to employee to settle down at new place of
transfer. It is decided on the basis of voyage which he takes to come to the place
of new posting.

Air journey 7 days

Rail/Road journey 8 days

Partly Rail/Road/Air 8days

27
 The above given days will be calculated excluding Sundays and including any
holidays for festivals.

• TRAVEL ENTITLEMENT
Travel reimbursement is given on the basis of designation of employees on the
organization this division is given below:-

M2 & above M2 Air travel /1st class rail

M1 & below M1 1st class/2nd class rail

An employee if not entitled to go by air (i.e. employee below grade M1 &

M1), if they still go by air then their reimbursement will be on the basis fare
charged by ‘Rajdhani’ rail.

• TRANSFER GRANT
One month’s pay plus Dearness Allowance of the employee shall be paid.

An employee will be entitled to transfer grant if the transfer involves change of

station of posting and of residence.

• TRANSPORTATION OF PERSONAL EFFECTS:-

Carriage of personal effects as per following scale will be allowed:-

BY RAIL

Pay Range by Rail (Goods Train)

Rs. 1786/- & above 6000 Kgs (full four wheeler wagon by goods train/two
railway containers)

Rs. 1426/- & above but less than Rs. 1786/-

28
 BY ROAD

Pay Range Phase connected by Road only / Local Charges A/B Class
Other Cities Rate Per Kilometer (i) (ii) (iii)

Rs. 1786/- & above Rs. 7.50 Rs. 4.50

Rs. 1426/- & above but less than Rs. 1786/- for Rs. 3.75 Rs. 2.25

Below Rs.1426/- Rs. 1.90 Rs. 1.15

• PACKING, LOADING AND UNLOADING

On the basis of designation charges are paid for this.

M2 & above 19000

M1 & below 16000

• SCHOOL ADMISSION
Certain extra amount is paid to employee for admission of their children in
various institutes these provisions are as follows:-

Metros cities 7000 per child

Non-metros cities 5000 per child

This amount is paid only till 18 years of age.

• SALARY ADVANCE
When an employee shifts to a new location then to help him to settle down
properly company provides employee with advance salary.

Advance salary includes 3 month salary including (basic pay+ dearness

allowance+ special pay + stagnation increment)

This advance is recoverable 12 monthly installments.

29
 • TRANSFER BENEFITS ON REQUEST
Employee personally demands for his transfer then benefits will be provided on
the basis of number of years served by him on that place of posting.

Employee worked for 3 years & All benefits provided

Employee has not worked for 3 years Reimbursement of

journey fare by
entitled class for self
& family &
transportation of
household goods and
car

OTHER BENEFITS

• PROJECT ALLOWANCE
10% of basic pay till the duration of project payable from the date of approval of
project or date of joining the project whichever is earlier.

• SHIFT ALLOWANCE
Shifts grade M1&M0 grade M2
&above

1ST/ 2nd shift 80 100

Night shift 130 150

(10:00p.m. onwards)

• MARRIAGE GIFT ALLOWANCES:-

To extend some ex-gratia amount to the employees as a token of gesture on the

30
occasion of his/her legal marriage.

ELIGIBILITY

All regular employees of the company including Executive Trainees who

are appointed on regular scale of pay. Deputationists, who have come from
PSU/Govt. only where they go for legal marriage during his/her deputation
period at GGL.

ENTITLEMENT

Rs.1001/- to the eligible employees.

GENERAL

This will be payable on behalf of the company on the occasion of legal marriage
of the employee and no on other occasion. It will be sanctioned only once during
his/her employment with the company. An A/C payee Cheque of the company
may be presented to the employee concerned by the senior-most officer on behalf
of the all employees.

Marriage Gift is admissible only once during the entire service of the employee
with the Company.

III Employee Benefits

LEAVES

Notwithstanding anything contained in these rules, following types of

leave shall

be admissible to employees:-

31
 (a) Casual Leave

(b) Special Casual Leave

(c) Earned Leave

(d) Extraordinary Leave

(e) Maternity Leave

a) CASUAL LEAVE (C.L.)

(I) Casual Leave upto a maximum of 12 days in each calendar year shall be
admissible to cover the casual absence of an employee for personal
reasons.

(ii) Casual Leave can be availed for half day also. If half day’s Casual Leave
is availed, the lunch interval will be taken as the dividing line.

(iii) Such Leave shall be treated as duty for all purposes like fixation of pay,
grant of increment and payment of salary.

(iv) Casual Leave cannot be combined with any other type of Leave and the
period of Casual Leave immediately preceding or following any other type
of leave shall have to be applied for by the employee for conversion into
any other kind of leave.

(v) Period of Casual Leave (including intervening Sunday/ Holiday/

Compensatory off availed of by an employee shall not exceed 12 days at
one occasion.

32
 (vi) Employees who have joined GGL on first appointment during the calendar
year will be allowed Casual Leave on pro-rata basis i.e. 1 (one) day Casual
Leave for each month.

EXPLANATION

Sundays, holiday and any other weekly off days falling before, after or
within the period of casual Leave shall not counted as part of the Casual
Leave.

b) SPECIAL CASUAL LEAVE

An employee, who has completed at least one year’s service may be ranted
Special Casual Leave for the following reasons in a calendar year subject to the
conditions prescribed therefore.

i. Condition of completion of one year’s service is not applicable while

granting Special Casual Leave for the purposes of donation of blood and
adoption of small family norms.

ii. 30 days for participation in National/ International sports events

iii. 10 days for Inter-departmental /District sports.

iv. 1 day for donation of blood for the day of donation up to a maximum of 30
days in a calendar year where such employee donates blood on a working
day.

v. For actual days of training in Territorial Army Camp.

vi. For actual days (s) of examination(s) under the Hindi Teaching Scheme
ofthe Govt. of India.

33
c) EARNED LEAVE (E.L.)

i) Earned Leave shall be admissible to an employee at the rate of 30 days in

a year. 15 days. Earned Leave shall be credited in advance to the
employee twice in a Calendar year i.e. Ist Jan. & Ist July. For any part
period during the relevant half year, E.l. will be allowed @ 1/11th of the
period spent on duty.

EXPLANATION

Period spent on duty includes Sundays, holidays, Casual Leave,

Earned Leave, Special Casual Leave, Maternity Leave, Quarantine
Leave, Half Pay Leave & Commuted Leave but does not include
Extra Ordinary Leave without pay.

ii) Any fraction of Earned Leave of one half or more will be treated as one
day and less than one half will be ignored.

iii) Maximum accumulation of Earned Leave by an employee shall be 240

days.

iv) Earned Leave may be granted to an employee up to a maximum period of

120 days on a single occasion.

v) Seventy Five per cent (75%) of the Earned Leave standing to the credit of
an employee can be en-cashed at any time either fully or partly in
multiples of 5, subject to minimum of 5 days and maximum of 90 days at
a time.

vi) Un availed Earned Leave can be en cashed at the time of resignation,

voluntary retirement, superannuation
34
vii) Encashment of Earned Leave can be availed twice in a Calendar year.

viii) Performa for availing Earned Leave and encashment of Earned Leave are
annexed.

ix) During the period of Earned Leave, an employee will be entitled to basic
pay and other allowances e.g. D.A./H.R.A./C.C.A/Project Allowance as
admissible.

x) Cash equivalent of Earned Leave lying to the credit of an employee at the

time of his retirement or superannuation shall be paid to him. In case of
death, it will be paid to his nominee/legal heir (s). In case no separate
nomination has been made by the employee for this purpose the
nominee(s) as obtaining for the P.F. shall be paid the requisite dues on this
account.

xi) In case of termination of services of an employee (otherwise than on

disciplinary grounds) or resignation, voluntary retirement/ superannuation,
entire Earned Leave, whether encashable or non-encashable as admissible,
may be allowed to be encashed subject to a maximum of 240 days.

xii) Earned Leave transferred in respect of an employee from another Public

Sector Undertaking (PSU) may be credited in the Earned Leave Account
in the same manner in which it is intimated by the transferor Public Sector
Undertaking (PSU) subject to receipt of lump-sum amount equivalent to
such Earned Leave to his credit may be transferred to the new organization
in case the employee so desires.

xiii) Pay, D.A. any other relief allowed from time to time and treated as pay
shall count for encashment of Earned Leave.

xiv) An employee may be permitted to adjust any portion of Earned Leave in

fulfillment of requisite notice at the time of resignation or voluntary
retirement from service.
35
d) EXTRA ORDINARY LEAVE (EOL)

i) Extra ordinary Leave may be granted to an employee who has completed a

minimum of one year of service.

ii) Extra Ordinary Leave may be granted to an employee upto a maximum of

3 months in normal circumstances;

iii) If an employee absents from duty, without prejudice to any other action
contemplated, the Competent Authority may treat the period of absence as
EOL.

iv) However, in the following special circumstances, Extra Ordinary Leave

exceeding 3 months may be granted:-

a) On medical grounds supported by medical certificate for a period not

exceeding 6 months;

b) In case of employees suffering from TB, Leprosy, pulmonary TB,

Cancer, Mental illness for a period not exceeding 18 months;

v) For study purposes, EOL may be granted to an employee for a period not
exceeding 24 months under following conditions:-

a) The proposed study is in the functional area of the employee.

b) The employee shall have to put in a minimum of three years of service

in GAIL after returning from EOL.
36
 c) The employee shall execute a bond that in case he leaves service within
3 years from his returning from EOL, he will pay to the GGL as per his
grade in the organization.

NOTE:

Requests of employees for EOL for higher studies should be considered with the
prior approval of the Corporate Office. This will be guided by the following
factors:

a) The study should be in an area relevant to technology and management,

which has a bearing on the work of the employee and will equip the
employee with higher qualifications that would held him in his career as
well as the objects of the Company;

b) It should be for studies in a recognized University or Institution only;

c) Though such leave can be for any kind of higher studies related to the
fields of the employees as at (a) above but ordinarily the same will be
considered for Post Graduate or Doctorate qualifications

d) The employee should produce clear proof of admission to the

University/ Institution. Leave cannot be granted for contemplated studies
where admissible is not obtained.

e) For processing of leave request for studies abroad, in addition to proof

of admission, the application should be accompanied by documents to
show that the employee has financial support and student visa.

f) The employee will be required to produce evidence of progress made in

his/her studies. Where there is unsatisfactory proof of progress, the leave
may be terminated.

37
 g) The duration of leave will be coterminous with the duration of course of
study and shall not ordinarily be extended beyond two years.

vi) Extra Ordinary Leave can be combined with any other kind of leave
except Casual Leave and Special Casual Leave.

vii) No leave salary shall be admissible during the period of Extra

Ordinary Leave.

e) MATERNITY LEAVE

i) A female employee may be granted Maternity Leave on full pay for a

period upto 90 days from the date of its commencement.

ii) Maternity Leave not exceeding six weeks may also be granted on the
recommendations of the Medical Officer in case of miscarriage including
abortion.

iii) Maternity Leave may be combined with leave of any kind including
Commuted Leave but excluding Casual/Special Casual Leave, upto a
maximum of 60 days, if the employee so desires, without production of
Medical certificate.

iv) Any other type of leave, as may be admissible, may also be granted in
continuation of Maternity Leave in case of illness of a newly born child
subject to the employee producing medical certificate to the effect that the
condition of the ailing infant warrants the mother’s personal attention and
her presence by the infant’s side is absolutely necessary.

38
 NOTES:-

• RECALL FROM LEAVE

i) In case the competent Authority, owing to the exigencies of work, recalls
an employee to duty before the expiry of leave, the employee shall be
treated as on duty from the date on which he starts from the place of his
stay for the station to which he is ordered to report provided the
curtailment of leave is for a minimum period of 5 days inclusive of
Sundays/Holidays.

ii) Travelling allowance will be admissible for such journey in accordance

with relevant rules in forces.

• COMBINATION OF LEAVE
Except where it is expressly provided otherwise in these rules, any kind of leave
permissible under these rules may be granted in combination with or in
continuation of another type of leave permissible hereunder.

• LEAVE ACCOUNT
A leave account showing the various types of leave due and the leave availed
shall be maintained in such form as may be prescribed and the balance at credit
shall be worked out therein on each occasion leave is granted.

• SUNDAY (WEEKLY OFF DAYS) AND HOLIDAYS

i) Sundays or Holidays immediately preceding or following any type of
leave shall be deemed to be prefixed or suffixed to that leave in the normal
course unless specifically ordered otherwise by the Competent Authority.

ii) A Sunday or Holiday falling between the first and the last day of any
leave period (other than Casual Leave) shall count as part of that leave.

39
• PRIOR SANCTION OF LEAVE
An employee shall not proceed on leave without prior sanction from the
Competent Authority. He shall state the reasons for the leave applied for and his
leave address. Except in emergencies, applications for leave for a periods up to 3
days shall be made one day in advance and for leave of more than 3 days at least 7
days in advance of the date from which the leave is required.

• ADVANCE AGAINST LEAVE SALARY

i) Competent Authority may grant an advance of leave salary to an employee
of GGL proceeding on Earned Leave for a period of 30 days or more
subject to its adjustment from the pay or leave salary pair to the employee
subsequent to the grant of such advance.

ii) Advance should be restricted to the net amount of pay or leave salary
which would have been otherwise admissible to the employee.

• ABSENCE FROM DUTY

If an employee remains absent without proper intimation, he will be marked
absent and it will render him liable for disciplinary action for misconduct. If an
employee remains absent for a period of more than 10 days or does not report for
duty within 10days from the date of expiry of leave granted to him, the
Appointing Authority may presume that he has no interest in the employment and
has voluntarily abandoned the service of the Company and accordingly his name
shall be struck off the rolls of GGL without any notice.

• MEDICAL CERTIFICATE & SECOND MEDICAL OPINION

i) An employee who has been granted leave or extension of leave on
medical grounds shall not be allowed to resume duty unless he produces a
certificate of fitness from any of the following Medical Authorities viz.
Govt. Medical Officer, Head/ In charge of a Civil Hospital, Registered
Medical Practitioner (Allopathic possessing the qualifications of not less
40
 than M.B.B.S, Ayurvedic, Unani or Homeopathic Medicine)/or authorized
Doctor of GAIL. Normally, fitness Certificate should be from the same
Medical Authority which had issued the medical certificate.

ii) If the competent authority is of the opinion that the Medical Certificate
produced by an employee is not sufficient or has reasons to believe that
the same does not appear genuine, he may refer such employee to a Civil
Surgeon, Standing Medical Board or Authorized Doctor of the Company
for a second medical opinion. And if, in terms of second medical opinion,
the employee is fit to resume duty, he shall join forthwith failing which the
employee shall face disciplinary proceedings for the misconduct as per
rules and treated as unauthorized absent.

• LEAVE SANTIONING AUTHORITY

Leave Sanctioning Authority for grant of different kinds of leave shall be as
specified from time to time separately.

LEAVE TRAVEL CONCESSION

41
• ACTUAL TRAVEL FACILITY
LTC is given to all regular employees of GREEN GAS LIMITED. On the trip
employee can take along with him his spouse and 2 children. Children can include
major son, daughter, married daughter, widowed daughter (as long as living with
them).

If both husband and wife are government employees then either of the two can
claim for this facility and the other spouse has to furnish a certificate showing he
or she has not availed the facility.

• ENTITLEMENT FOR TRAVEL

Employee above grade M1 is given facility to go with 2nd or 3rd class AC class by
railway covering shortest route.

Employee above grade M1 are allowed to go by air or by Rajdhani covering

shortest route.

When the employee submits the bill 100% reimbursement is given.

• HIRING ACCOMODATION
Reimbursement paid to employees for 10 nights.

• OUTSIDE INDIA
Employees above grade M4 are provided with facility to visit outside INDIA at
alternative block of 2 years.

• ADVANCE FOR LTC

80% of estimated fare is paid to employees
42
 If actual amount incurred is less them employee is supposed to refund back the
amount to the company. If amount not refunded then an interest of 1% is charged
by the company.

• ENCASHMENT
GRADE AMOUNT

Above M2 7848/-

Below M2 4618/-

HOLIDAY HOME SCHEME:-

Employees of GREEN GAS LIMITED/ on secondment shall be entitled to avail facilities

of hotel as per following ceilings:-

Hotel tariff will be charged as given below inclusive of all taxes:-

GRADE METRO/A-1 A and B OTHER DEARNESS

CITIES CITIES LOCAL ALLOWANCES
CITIES

M-0/M-1 4000 3000 2000 500

M-2/M-3 6000 3500 2500 700

M-4/M-5 8000 4000 3000 900

Directors Actual actual actual 1100

(note a) (note a) (note a) *NOTE (a)-

Any and 5 star hotel stay permitted.

43
CHILDREN EDUCATION FUND

• To regular/ deputationist employee age limit should be less than 30 year who are
wholly dependent, unemployed, unmarried doing course for a recognized
institute.
• Not given for students perusing Ph.d
• Either husband or wife will be given educational assistance whether working in 1
office or working in different office.
• Children in Nursery, Lower KG, and Senior KG will be paid educational
allowance even on unauthorized school.
• Hostel subsidy 1500/-p.m. per child or even private hired accommodation due to
non availability of hostel facility. This is applicable whether student is perusing a
professional or non-professional.
• Journey fare restricted to 2nd class rail fare from the shortest route twice in a year.
• For physically/ mentally handicapped children subsidy is provided even for
unrecognized school up to class and 12th.
• The company also provides students scholarships on the basis of their
performance in various standards:
COURSE 60% 70% 80% 90%

SSC Metric 1000 1500 3000 5000

HSC 1500 2000 3000 5000

Diploma(min 3 year) 1500 2000 3000

B.A., B.ed 2500 3000 3500

B.Com 2500 3000 3500

B.Sc 2500 3000 3500

BE, MBBS, MBA, MCA 6000

CA, CS, ICWA 4000(inter) 6000(final)

PROVIDENT FUND

44
• According to government EMPLOYEE PENSION SCHEME 1995
• Any employee of the organization can become a member of pension scheme.
All employees joined after 16/11/1995 is by default members of FAMILY
PENSION SCHEME 1971

Pension is calculated as follows:-

12% of (basic pay + dearness allowance + special pay + stagnation pay)This
amount is kept as saving each month from the each month salary of the employee

GRATUITY

• Payment of gratuity according to GRATUITY ACT 1972

• Gratuity will be paid @ 15/26 of monthly pay ( basic pay + dearness allowance +
stagnation pay) for each completed year in service or part thereof in excess of 6
months on 3.5 lakhs whichever is less service period greater than 5 lakhs.
• In case of death
During 1st year 2 months emolument

After 1st year but before 5 year 6 months emolument

After 5th year but before 20 year 12 months emolument

Greater than 20 year 33times but less than 3.5 lakhs

• Minimum service required to apply for gratuity

Retirement/VRS/superannuation 5 years

Terminate discharge 10 years

GROUP INSURANCE SCHEME:-

45
GREEN GAS LIMITED is operated in association with L.I.C and it provides twin
benefits of risk coverage and savings. This is contributing scheme.

The amount of monthly contribution and risk coverage for different groups are under:-

GRADE MONTHLY INSURANCE COVERS

CONTRIBUTION

Officers Rs.75/- Rs. 75,000

Rs.100/- Rs. 1,00,000

Employees are covered under LIC’s group saving linked insurance double accident
scheme. This is on additional insurance coverage against accident. The insurance amount
under additional coverage is equal to the amount covered under GS and premium is
payable by the cooperation.

In other words, the benefits will be double in case of an accident.About 1/3 rd amount of
the monthly contribution is paid towards premium (risk coverage) and the balance
amount goes into saving account on which 8% of simple interest (current rate of interest)
is paid by L.I.C. In case of death of employee the dependent of the deceased employee
will receive the insured amount and in case of superannuation the saving portions of the
amount along with the interest accrued thereon will be paid to the employee within 2
months from the date of superannuation.

MEDICAL RULES:-

46
Medical is reimbursable on production of medical bills. However in case of any
employee does not submit medical bills upto 15000/- in one year, balance shall be paid
after deduction of applicable income tax.

Company shall take medi-claim policy for all eligible employees covering self, spouse
and two dependent children.

MOBILE PHONE FACILITY:-

Grade wise consolidated entitlement for reimbursement against residential/mobile

phone/data card shall be as under:-

DESIGNATION GRADE MONTHLY

ENTILEMENT,INCLUSIVE
OF MOBILE PHN(POST
PAID ONLY)/PHN AT
RESIDENCE/DATA CARD
IN NAME OF EMPLOYEE

Trainee M-0 800

Sr. Officer M-1 1400

Manager M-2 1800

Ch manager M-3 2100

Dgm M-4 2700

Gm M-5 3000

# Directors As per actual

# In case of any the director(S) is allowed family retention by the respective parent
company at a place other than a place of posting, the landline phn/broadband at the

47
address of the family retention shall be reimbursed entitlement limit will be calculated
and reimbursed by finance department on quarterly basis.

Employee has to give declaration in writing to finance department under imitation to HR

department regarding details of mobile number, landline phone or data card for which
he/she will claim for reimbursement. The phone/mobile/data card has to be in the name
of employee.

CLUB MEMBERSHIP

Category Entrance fees Subscription fees

METRO OTHER METRO OTHER

E, F division 20000 6000 400 300

G & above 35000 15000 700 500

FURNITURE ON HIRE AT RESIDENCE OF OFFICERS

48
 All officers are eligible new officer after completing training car for furniture.
Deputationist are entitled with facility of HOME DESK TOP PC

GRADE COST HIRE CHARGE

M0 40000 55

M1 50000 60

M2 75000 70

M3 115000 85

M4 140000 90

M5 150000 100

Officer can purchase furniture after 7 year of retention of it at book value.

Scheme of DESK TOP PC

(i) A “home desk –top scheme” the overall existing scheme for
furniture or household with objective of promoting.
(ii) I T within Indian oil family with context of MANTHAN
Project
(iii) Facilitating work at home.

Procurement of pc will printers &peripherals including software 35000/-

SMALL FAMILY NORMS

49
 Small family norms are applicable to employee’s spouse two children joined after
1/7/88.

• LTC
• Medical benefits
• Transfer benefits transfer allowance daily allowance
• Incentive for family planning
• Any other family related benefits

GRIEVIANCE REDRESSAL PROCEDURE FOR EMPLOYEES

INTRODUCTION

GREEN GAS LIMITED Management believes in the philosophy of an open-door policy

in the matter of redressal of employees' grievances. An aggrieved employee can meet his
departmental head of the concerned officer of the HR Department (including the Head of
the HR Department) and discuss his grievance.

However, it is with a view to provide a machinery for proper and speedy redressal of
employees' grievances that a formal time bound Grievance Redressal Scheme / Procedure
has been evolved. The employees are expected to follow this procedure in seeking
redressal of their grievances pertaining to the matters covered by this Scheme.

APPLICABILITY

The Scheme will cover all employees of GGL except the following:-

a) Executives directly reporting to the Chief Executive of the Company.

b) Executives who are one step below the Board level.

OBJECTIVES

50
The objective of the Grievance Redressal Procedure is to provide an easily accessible
machinery for settlement of grievances and to adopt measures as would ensure
expeditious settlement of grievances of staff and officers leading to increased satisfaction
on the job and resulting in improved productivity and efficiency of the organization.

SCOPE

A grievance for the purpose of this Scheme would only mean a grievance relating to any
individual employee arising out of the implementation of Company policies / Rules or
Management decision. It can include matters relating to leave, increment, non-extension
of benefit under the Rules, interpretation of Service Rules etc. of an individual nature.

The grievances pertaining to or arising out of the following shall not come under the
purview of the Grievance Procedure:

a) Annual Performance Appraisals / Confidential Reports

b) Matter relating to collective dispute/bargaining such as wages and allowances,

bonus, hours of work and other benefits.

c) Cases relating to disciplinary matters (since such a grievance will be dealt with, in
terms of the provisions of the GAIL Employees (Conduct, Discipline & Appeal)
Rules.

d) Where the points are of general applicability or of considerable magnitude

e) In the case of any grievance arising out of discharge or dismissal of an employee.

If the grievance arises out of an order issued by the Management, the said order shall first
be complied with before an employee takes recourse to the grievance procedure. If,
however, there is a long time lag between the issue of the order and the date of
enforcement, the grievance procedure may be involved but orders must, nevertheless, be
complied within the date of enforcement.

PROCEDURE

51
Subject to the provisions herein contained, individual grievances of employees shall be
processed and dealt with in the following manner:

STAGE - I

i. An aggrieved employee may in the first instance meet his immediate superior
officer and present the grievance orally to him within 7 (seven) days of the
occurrence of the grievance. The immediate superior officer will give a personal
hearing and try to resolve the grievance(s) at his level within 7 (seven) days.

ii. In case the employee is not satisfied or he does not get an audience with his
superior officer within the prescribed time, he can present the grievance in the
prescribed form (Form - I) to his Sectional Head within 7 days. The Sectional
Head shall give a personal hearing to the aggrieved employee and discuss with
him the grievance in detail, and give a reply within 7 days of receipt of the
grievance.

STAGE - II

i. In case the employee is not satisfied with the decision communicated to him at
Stage-I or fails to receive a reply within stipulated period, he may submit his
grievance within a period of 15 days to the Head of Department in the prescribed
form (Form II) for the latter's consideration. The Head of the Department may, if
he so desires, personally discuss the grievance with the Sectional Head or with
other senior officials or the aggrieved employee before giving his final decision.
Similarly, the aggrieved employee, if he so desires, may seek personal interview
with the Head of the Department to explain his case.

ii. The aggrieved employee will be replied to within 30 days of receipt of his
grievance at Stage - II.

STAGE - III

52
If the employee is not satisfied of fails to get a reply within the stipulated period at
STAGE- II, he may present his grievance for consideration at STAGE- III in the
prescribed Performa (Form - III) within a period of one month. At this stage the
grievance will be referred to the 'Grievance Committee’ to be constituted by the
respective General Manager/Dy. General Manager for the Projects / Offices and by the
Director (Personnel) for Corporate Office. The committee will consist of the following:-

a) Senior level Executive to be nominated by the GM Chairman

b) Concerned Head of the Department Member (To be co-opted in each case)

c) An executive from Finance & Accounts Department Member

d) An executive of the Personnel Department Secretary

e) Nominee from amongst the Non-Executives in case of Non-executives

Provided further that the Committee may call the aggrieved employee in its meeting for a
personal hearing where considered necessary or where the aggrieved employee so
requests.

The Committee will meet at regular intervals to be determined by its Chairman to

deliberate upon all such grievances as are addressed to it. Any grievance referred to the
Grievance Committee will be processed by the Secretary of the Committee within two
moths and the recommendations sent to the GM concerned for a decision. The decision of
the GMM will be conveyed within 15 days and will be final. The Grievance Committee
will have a tenure of two years.

Appeal

53
In case the employee still remains dissatisfied with the decision of the Grievance
Committee or even with the decision of the General manager, he may appeal to Director
(HR)/CMD within a period of 10 days from the date of receipt of the decision from the
Grievance Committee. The decision of Director (HR).CMD will be communicated to the
aggrieved employee within a month of the receipt of his appeal and this decision shall be
final and binding on the aggrieved employee and the Management.

54
LITERATURE SURVEY

PERFORMANCE APPRAISAL

55
Performance appraisal may be defined as a structured formal interaction between a
subordinate and supervisor, that usually takes the form of a periodic interview (annual or
semi-annual), in which the work performance of the subordinate is examined and
discussed, with a view to identifying weaknesses and strengths as well as opportunities
for improvement and skills development.

In many organizations - but not all - appraisal results are used, either directly or
indirectly, to help determine reward outcomes. That is, the appraisal results are used to
identify the better performing employees who should get the majority of available merit
pay increases, bonuses, and promotions.

DEFINITIONS OF PERFORMANCE APPRAISAL

According to FLIPPO, ”Performance appraisal is the systematic, periodic and an

impartial rating of an employee’s excellence in the matters pertaining to his present job
and his potential for a better job.”

According to DOUGLAS,” performance appraisal is a method of acquiring and

processing the information needed to improve an individual employee’s performance and
accomplishment.

According to NEWSTROM,” it is the process of evaluating the performance of the

employees, sharing that information with them and searching for ways to improve their
performance.”

CHARACTERISTICS

56
 1. Performance Appraisal is a process.

2. It is the systematic examination of the strengths and weakness of an employee in

terms of his job.

3. It is scientific and objective study. Formal procedures are used in the study.

4. It is an ongoing and continuous process wherein the evaluations are arranged

periodically according to a definite plan.

5. The main purpose of Performance Appraisal is to secure information necessary

for making objective and correct decision an employee.

OBJECTIVES OF PERFORMANCE APPRAISAL

Performance appraisal system can serve the following purposes if designed properly

57
 • Help each employee to understand more and more about his role and become
clear about his functions.

• Helps each employee to understand his own strengths and weaknesses with
respect to his role and functions of the company.

• Helps identifying the developmental needs of employees.

• Helps increase mutuality between employee and his superiors.

• Provides an opportunity to the employees for self reflection and individual goal
Setting

• Helps in preparing employees for performing at high levels by continuously

enforcing the required qualities.

• Creates a healthy environment in the organization.

METHODS OF PERFORMANCE APPRAISAL

The main methods of performance appraisal are described below in brief manner:

• Graphic rating method

58
 • Ranking method

• Management by objective method

• 360 degree appraisal method

• Behaviorally Anchored Rating Scale

GRAPHIC RATING METHOD

This technique may not yield the depth of an essay appraisal, but it is more consistent and
reliable. Typically, a graphic scale assesses a person on the quality and quantity of his
work (is he outstanding, above average, average, or unsatisfactory?) and on a variety of
other factors that vary with the job but usually include personal traits like reliability and
cooperation. It may also include specific performance items like oral and written
communication.

RANKING METHOD

For comparative purposes, particularly when it is necessary to compare people who work
for different supervisors, individual statements, ratings, or appraisal forms are not
particularly useful. Instead, it is necessary to recognize that comparisons involve an
overall subjective judgment to which a host of additional facts and impressions must
somehow be added. There is no single form or way to do this.

The two most effective methods are alternation ranking and paired comparison ranking.

1. “Alternation ranking”:

Ranking of employees from best to worst on a trait or traits is another method for
evaluating employees. Since it is usually easier to distinguish between the worst and the
best employees than to rank them, an alternation ranking method is most popular. Here

59
subordinates to be rated are listed and the names of those not well enough to rank are
crossed. Then on a form as shown below, the employee who is highest on the
characteristic being measured and the one who is the lowest are indicated. Then chose the
next highest and the next lowest, alternating between highest and lowest until all the
employees to be rated have been ranked.

2. “Paired-comparison ranking”:

This technique is probably just as accurate as alternation ranking and might be more so.
But with large numbers of employees it becomes extremely time consuming and
cumbersome.

Both ranking techniques, particularly when combined with multiple rankings (i.e., when
two or more people are asked to make independent rankings of the same work group and
their lists are averaged), are among the best available for generating valid order-of-merit
rankings for salary administration purposes.

MANAGEMENT BY OBJECTIVES

To avoid, or to deal with, the feeling that they are being judged by unfairly high
standards, employees in some organizations are being asked to set - or help set - their
own performance goals. Within the past five or six years, MBO has become something of
a fad and is so familiar to most managers that I will not dwell on it here.

360 DEGREE APPRAISAL METHOD

Many firms have expanded the idea of upward feedback into what the call 360-degree
feedback. The feedback is generally used for training and development, rather than for
pay increases.

Most 360 Degree Feedback system contains several common features. Appropriate
parties – peers, supervisors, subordinates and customers, for instance – complete survey,
60
questionnaires on an individual. 360 degree feedback is also known as the multi-rater
feedback, whereby ratings are not given just by the next manager up in the organizational
hierarchy, but also by peers and subordinates. Appropriates customer ratings are also
included, along with the element of self appraisal. Once gathered in, the assessment from
the various quarters are compared with one another and the results communicated to the
manager concerned.

This feedback system involves the participation of:

• Coworkers – 40%

• Subordinates - 20%

• Superior - 40%

BEHAVIORALLY ANCHORED RATING SCALE (BARS)

It is a sophisticated method of evaluating the employee based on the employee behavior.

It is a numerical scale that is anchored by the seniors of the organization at various
centers. This is highly confidential and the information is sent in sealed envelopes and
opened only at the time of the final evaluation. There is no further discussion regarding
this scaling, thus it is not given enough weightage.

BENEFITS OF APPRAISAL

Perhaps the most significant benefit of appraisal is that, in the rush and bustle of daily
working life, it offers a rare chance for a supervisor and subordinate to have "time out"
for a one-on-one discussion of important work issues that might not otherwise be
addressed.

• MOTIVATION AND SATISFACTION:

61
 Performance appraisal can have a profound effect on levels of employee motivation
and satisfaction - for better as well as for worse.

Performance appraisal provides employees with recognition for their work efforts.
The power of social recognition as an incentive has been long noted. In fact, there is
evidence that human beings will even prefer negative recognition in preference to no
recognition at all.

If nothing else, the existence of an appraisal program indicates to an employee that

the organization is genuinely interested in their individual performance and
development. This alone can have a positive influence on the individual's sense of
worth, commitment and belonging.

• TRAINING AND DEVELOPMENT:

Performance appraisal offers an excellent opportunity - perhaps the best that will ever
occur - for a supervisor and subordinate to recognize and agree upon training of
individuals for improvement of performance.

From the point of view of the organization as a whole, consolidated appraisal data can
form a picture of the overall demand for training. This data may be analysed by
variables such as sex, department, etc. In this respect, performance appraisal can
provide a regular and efficient training needs audit for the entire organization.

• RECRUITMENT AND INDUCTION:

Appraisal data can be used to monitor the success of the organization's recruitment
and induction practices. For example, how well are the employees performing who
were hired in the past two years?

Appraisal data can also be used to monitor the effectiveness of changes in recruitment
strategies. By following the yearly data related to new hires (and given sufficient
62
 numbers on which to base the analysis) it is possible to assess whether the general
quality of the workforce is improving, staying steady, or declining.

• EMPLOYEE EVALUATION:

But the need to evaluate (i.e., to judge) is also an ongoing source of tension, since
evaluative and developmental priorities appear to frequently clash. Yet its most basic
level, performance appraisal is the process of examining and evaluating the
performance of an individual.

Though organizations have a clear right - some would say a duty - to conduct such
evaluations of performance, many still recoil from the idea. To them, the explicit
process of judgment can be dehumanizing and demoralizing and a source of anxiety
and distress to employees.

COMMON MISTAKES

Where performance appraisal fails to work as well as it should, lack of support from the
top levels of management is often cited as a major contributing reason.

Opposition may be based on political motives, or more simply, on ignorance or

disbelief in the effectiveness of the appraisal process.

It is crucial that top management believe in the value of appraisal and express their
visible commitment to it. Top managers are powerful role models for other managers
and employees.

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• FEAR OF FAILURE
There is a stubborn suspicion among many appraisers that a poor appraisal result tends
to reflect badly upon them also, since they are usually the employee's supervisor. Many
appraisers have a vested interest in making their subordinates "look good" on paper.

When this problem exists (and it can be found in many organizations), it may point
to a problem in the organization culture. The cause may be a culture that is
intolerant of failure. In other words, appraisers may fear the possibility of
repercussions - both for themselves and appraise.

• JUDGEMENT VERSION

Training in the techniques of constructive evaluation (such as self-auditing) may

help. Appraisers need to recognize that problems left unchecked could ultimately
cause more harm to an employee's career than early detection and correction.
Organizations might consider the confidential archiving of appraisal records more
than, say, three years old.

• FEEDBACK-SEEKING
It occurs where a poor performing employee regularly seeks informal praise from his
or her supervisor at inappropriate moments.

The aim of the game is that the feedback- seeker wants to deflect responsibility for
their own poor performance. They also seek to bolster their appraisal rating by
bringing in all the "evidence" of casual praise. Very often the feedback seeker will
succeed in making the supervisor feel at least partly responsible. As a result, their
appraisal result may be upgraded.

• APPRAISER PREPARTION
The bane of any performance appraisal system is the appraiser who wants to "play it by
ear". Such attitudes should be actively discouraged by stressing the importance and

64
technical challenge of good performance appraisal. Perhaps drawing their attention to the
contents of this web site, for example, may see theoretical issues that must be considered
see the critical issues that must be considered.

• EMPLOYEE PARTICIPATION
Employees should participate with their supervisors in the creation of their own
performance goals and development plans. Mutual agreement is a key to success. A
plan wherein the employee feels some degree of ownership is more likely to be
accepted than one that is imposed. This does not mean that employees do not desire
guidance from their supervisor; indeed they very much do.

• PERFORMANCE MANAGEMENT
One of the most common mistakes in the practice of performance appraisal is to
perceive appraisal as an isolated event rather than an ongoing process.

Employees generally require more feedback, and more frequently, than can be
provided in an annual appraisal. While it may not be necessary to conduct full
appraisal sessions more than once or twice a year, performance management should
be viewed as an ongoing process.

In this case, the organization may need to review the priorities and values that it has
instilled in its supervisory ranks. After all, supervisors who haven't got time to
monitor and facilitate the performance of their subordinates are like chefs who
haven't got time to cook, or dentists who are too busy to look at teeth.

65
 TECHNIQUE OF PERFORMANCE APPRAISAL USED IN

GREEN GAS LIMITED

The performance appraisal in the company is done in the form of 5-POINT RATING
METHOD and ESSAY METHOD the employee as well as DESCRIPTION of the
activities are described.

Essay evaluation method in performance appraisal

1. Definition of essay evaluation

• This method asked managers / supervisors to describe strengths and weaknesses of an

employee’s behavior. Essay evaluation is a non-quantitative technique
• This method usually use with the graphic rating scale method.

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2. Input of information sources

• Job knowledge and potential of the employee;

• Employee’s understanding of the company’s programs, policies, objectives, etc.;
• The employee’s relations with co-workers and superiors;
• The employee’s general planning, organizing and controlling ability;
• The attitudes and perceptions of the employee, in general.

Performance ranking method in performance appraisal

1. Definition of performance ranking method

Ranking is a performance appraisal method that is used to evaluate employee

performance from best to worst. Manager will compare an employee to another
employee, rather than comparing each one to a standard measurement.

2. Rating scale of ranking

• Much better – 5 points

• Slightly better – 4 points
• Equal – 3 points
• Slightly worst – 2 points
• Much worst – 1 point

3. Process of ranking

• The scaled comparison asks a rater or evaluator to compare the performance of two
individuals.
• Continue comparison to other two employees.
• Total points to each employee.
• Give point to employee, for example: A is Slightly better – 4 points so that B is Slightly
worst – 2 points.

IN THE COMPANY THE EVALUATOR, EVALUATES ON ABOVE BASIS:

67
 • Task and duties performed.

• Task not accomplished.

• External and internal factors which facilitates working of the employee in the
organization.

Further the reporting officer provides feedback regarding various accomplishment of the
officer. He provides the information about:

• Duties performed by employee.

• Where the employee has not performed upto the mark or has missed out
something.

Finally rating is done on various aspects on employee performance

• Owned direct work output

• Team play facilitating peers work output

• Support to superior with accountability

• Personal process and system discipline

• Innovative initiative for improvements

• Coaching and developments of subordinates

• Learning, uptake and self development

• Exploiting favourable factors

• Coping with hindering circumstances

• Leadership influence and impact

68
The employee is provided feedback on above criteria and his training and development
requirements are analysed.

RESEARCH METHODOLOGY

69
 RESEARCH METHODOLOGY

Research Methodology is a way to systematically solve the problem .For this purpose,
Objectives (research problem) should be clearly defined. Finally, the data is collected in
order to meet the objectives of research problem.

WHAT IS RESEARCH-

The ADVANCED LEARNER’S DICTIONARY of Current English lays down the

meaning of research as “a careful investigation or inquiry especially through search
for new facts in any branch of knowledge.”

OBJECTIVES OF RESEARCH-

• To study the existing policies of performance appraisal followed in the

organization.
70
 • To assess the changes required in existing performance appraisal form.
• To study the existing employee’s opinion for performance appraisal process of
the organization.
.
RESEARCH DESIGN

It is a conceptual structure with in which research would be conducted. The function

of research design is it provide for the collection of maximal relevant information
with minimal expenditure of effort, time, and money. In this research problem the
research design would be DESCRIPTIVE in nature.

DESCRIPTIVE RESEARCH:

This type of research design is rigid in nature. It understands problems creates findings
and produces a report for it. In this the researcher must be able to define clearly what he
wants to measure and must find adequate method for measuring it with clear definition of
population he wants to measure.

The main aim is to obtain complete and accurate information. The research design must
provide provision for protection against biasness and maximize reliability.

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 SAMPLE DESIGN:

UNIVERSE : GREEN GAS LIMITED, Lucknow

SAMPLE SIZE : 20

TYPE OF SAMPLING : Systematic sampling

DATA TYPE : Primary data

TYPE OF RESEARCH : It is a Descriptive Research, in which the

researcher has no control over the
variables he can only report what has
happened or what is happening

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DATA COLLECTION TOOL : Questionnaire

ANALYSIS AND INTERPRETATION

1. Are you satisfied with the current performance appraisal system

Options Frequency Percentage Cumulative

percentage

Yes fully satisfied 15 75% 75

Partially satisfied 4 20% 95

Not satisfied 1 5% 100

Total 20 100%

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INTERPRETATION:

It is found that out of 20 employees in the organisation, 75% employees are fully satisfied
with the performance appraisal technique used in the organisation, 20% employees are
partially satisfied and 5% wmployees are not satisfied with the technique used.

2 – In your opinion what kind of reward motivates you the most?

Options Frequency Percentage Cumulative

percentage

Non-monetary 2 10% 10

Both 6 30% 40

Certificates/word of 12 60% 60
appreciation

total 20 100%

74
INTERPRETATION:

It is found that out of 20 employees in the organisation, 60% employees for certificates as
their reward of good performance in the organisation, 40% employees are motivated with
both monetary nad non-monetary rewards and 10% wmployees are motivated with non-
monetary rewards.

3– What does appraiser mostly point out at the time of performance appraisal?

Options Frequency Percentage Cumulative

percentage

Your strength 12 60% 60

Your weakness 5 25% 85

Both 3 15% 100

total 20 100%

75
INTERPRETATION:

It is found that out of 20 employees in the organisation, 60% employees say that with the
performance appraisal technique used in the organisation tells them about their strengths,
25% employees say that it shows their weakness and 15% employees the technique hows
both their aspects.

4 – In your opinion who should be the appraiser?

Options Frequency Percentage Cumulative

percentage

Superior 8 40% 40

Peer and suordinate 4 20% 20

Subordinates 5 25% 85

All 3 15% 100

Total 20 100%

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INTERPRETATION:

It is found that out of 20 employees in the organisation, 60% employees think that
superior should appraise them, 25% employees think that subordinates should appraise
them and15% employees tink that all of them subordinates,superior and peer should
appraise them.

5 – Do you think that there is gender biasness while appraising performance in your
organization?

Options Frequency Percentage Cumulative

percentage

Yes 5 25% 25

No 15 75% 100

Total 20 100%

77
INTERPRETATION:

It is found that out of 20 employees in the organisation, 25% employees think that there
is gender biasness in the organisation and 75% employees think that there is no gender
biasness in their organisation.

6– Are you provided with proper training facility to improve your performance?

Options Frequency Percentage Cumulative

percentage

Yes 17 85% 85

No 3 15% 15

Total 20 100%

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INTERPRETATION:

It is found that out of 20 employees in the organisation, 85% employees say that yes they
are provided with proper training facility, and 15% employees think that they are not
provided with proper traning facility in the organisation.

7 – Does the current performance appraisal strengthen the employee - employer

relationship?

Options Frequency Percentage Cumulative

percentage

Yes 15 75% 75

No 5 25% 25

Total 20 100%

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INTERPRETATION:

It is found that out of 20 employees in the organisation, 75% employees say that through
performance appraisal their relation with their employer has improved and 25%
employees say that their relation with their employer is not strengthened by performance
appraisal.

8 – In your opinion what should be the cycle of performance appraisal?

Options Frequency Percentage Cumulative

percentage

Yearly 8 40% 40

Half yearly 7 35% 75

Quarterly 5 25% 25

Total 20 100%

80
INTERPRETATION:

It is found that out of 20 employees in the organisation, 40% employees say that the cycle
of performane appraisal should be yearly, 35% employees say that the cycle should be
half yearly and 25% employees say that the cycle of performance appraisal should be
quaterly.

9 – Comment on your last performance appraisal?

Options Frequency Percentage Cumulative

percentage

Inspiring 6 30% 30

Worthwhile 4 20% 50

Not applicable 10 50% 100%

Total

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INTERPRETATION:

It is found that out of 20 employees in the organisation, 30% employees say that their last
performance appraisal was inspiring,20% employees said that their performance appraisal
was worthwhile and 50% employees said not applicable.

10 – Do you think both positive and negative feedback are shared in same manner by
appraise?

Options Frequency Percentage Cumulative

percentage

Yes 17 85% 85

No 3 15% 15

Total 20 100%

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INTERPRETATION:

It is found that out of 20 employees in the organisation, 85% employees say that yes both
positive and negative feedback are shared in the same manner and 15% employees say
that no both feedback are not shatred in same manner.

11- Do you think proper communication between superior and subordinate after
performance appraisal is:-

Options Frequency Percentage Cumulative

percentage

Highly essential 8 40% 40

Less essential 2 10% 50

Essential 7 35% 85

Not required 3 15% 100

Total 20 100%

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INTERPRETATION:

It is found that out of 20 employees in the organisation, 40% employees say that proper
communication between superior and subordiante is highly essential, 10% employees say
that communication is less essential, 35% employees say that communication is essential
and 15% employees said that no communication is required.

12 – Is performance appraisal system essential to improve upon your personal skill?

Options Frequency Percentage Cumulative

percentage

Yes 20 100% 100

No 0 0% 100

Total 20 100%

84
INTERPRETATION:

It is found that out of 20 employees in the organisation, 100% employees said that yes
performance appraisal is essential to improve upon their skills.

13 – Do you think work done by you is prompt and perfect?

Options Frequency Percentage Cumulative

percentage

Perfect 10 50% 50

Satisfactory 9 45% 95

Not up to the mark 1 5% 100

Total 20 100%

85
INTERPRETATION:

It is found that out of 20 employees in the organisation, 50% employees said that the
work done by them is perfect, 45% employees said that work done by them is
satisfactory, 5% employees said that work done by them is not up to the mark.

14 – Are your subordinates skillful enough to help you in decision making?

Options Frequency Percentage Cumulative

percentage

Highly skilled 12 60% 60

Less skilled 2 10% 70

Unskilled 0 0% 70

Not applicable 6 30% 100

Total 20 100%

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INTERPRETATION:

It is found that out of 20 employees in the organisation, 60% employees said that their
subordinates are highly skilled, 10% employees said that their subordinates are less
skilled and for 30 % employees this question was not applicable as they do not have
subordinates under them.

15 – Reward and recognition in the company is done on the basis of:

Options Frequency Percentage Cumulative

percentage

Knowledge and 3 15% 15

expertise

Confidence and 2 10% 25

performance

Both 15 75% 100

Total 20 100%

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INTERPRETATION:

It is found that out of 20 employees in the organisation, 15% employees said that reward
and recognition is done on basis of knowledge and expertise present with the employees,
10% employees said that reward and recognition is done on basis of confidence and
performance and 75% employees said that it done on the basis of both.

16 – What do you think about 360 degree appraisal?

Options Frequency Percentage Cumulative

percentage

Good 17 85% 85

Average 3 15% 100

Bad 0 0% 100

Total 20 100%

88
INTERPRETATION:

It is found that out of 20 employees in the organisation, 85% employees think that 360
degree performance appraisal technique is good, 15% think that it is an average
technique.

17 – Do you think 360 degree performance appraisal system should be applied in this
organization?

Options Frequency Percentage Cumulative

percentage

Yes 15 75% 75

No 5 25% 25

Total 20 100%

89
INTERPRETATION:

It is found that out of 20 employees in the organisation, 75% employees think that 360
degree performance appraisal technique is required in this organisation but 15%
employees think that it is not required in this organisation.

18 – According to you performance appraisal should be done in which manner?

Options

Face to face
appraisal

Written appraisal

Both

Total

90
INTERPRETATION:

It is found that out of 20 employees in the organisation, 15% employees think that face to
face manner of performance appraisal should be used, 50% employees think that written
technique should be used and 35% employees think that both techniques should be used
equally.

FINDINGS

Questionnaire is used for the analysis and findings of my report; this is related with
PERFORMANCE APPRAISAL TECHNIQUE in the GREEN GAS LIMITED,
Lucknow.

For the purpose there are 18 questions in my questionnaire which are analyzed on the
basis of PERFORMANCE APPRAISAL TECHNIQUE of GREEN GAS LIMITED.
Analysis is done on percentage basis, which is also represented on the pictorial form on
the pie diagrams.

Questions related to study are as follows with their respective conclusion in mathematical
and pictorial form. My all question in questionnaire which are directly and indirectly
related to analyzing the Performance appraisal technique. In short mostly people are
satisfied with their company Performance appraisal policy.

Employees are satisfied with the recruitment procedure in GGL. In this case 75% are
strongly satisfied with Performance appraisal technique in GGL, 20% are partially
satisfy, 5% are dissatisfied.
91
In the organization there are many employees who are either new to the organization or
are appointed on contractual basis therefore these employees have not undergone there
performance appraisal yet. Due to this reason 50% employees were not able to comment
on their last performance appraisal.

Employees of the organization think that 360 degree technique of performance appraisal
is good for their company.

The employees are also satisfied with the training provided to them in the organization
85% employees are happy with the training provided to them.

It is found in the organization that cycle of appraisal is annually. The employees also have a
very good working experience in the organization. It is beneficial program for both employee
and the organization

CONCLUSION

Every activity has a purpose or an objective behind it. This project has helped me in
gaining experience and acquiring certain knowledge about the company. The working
environment in GREEN GAS LIMITED, Lucknow, is very congenial and healthy. The
participation of employees in management and labor-management is satisfactory.

Through the questionnaire it was found that promotions were and known to most of the
top and senior management while middle and lower management were a bit not clear
about it. This could be attributed to the fact that senior and top management were more
involved in decision making and policy formulation than are the middle and lower
management.

After analyzing the questionnaire it can be concluded that the company has yet to do
major amount of work to accomplish the performance appraisal technique to the fullest.

92
 The company is genuinely interested in improving the efficiency and utility of
performance appraisal to succeed in growing environment. They think that Performance
appraisal is an essential part and a matter of great concern for the company. The study
intends to focus on the points like different training program and various motivation
factor which should be provided to the employees for improvement of their
performance. It is also an effort to help the organization in identifying its areas of
strength, weaknesses, threat and opportunities.

LIMITATIONS

1. No interpersonal communication and behavior assessment by peers and

subordinates.

2. The performance of the employees is not regularly monitor.

3. The required feedback is not provided to the subordinates from time to time. The
appraisals are conducted at fixed intervals. The organization believes in using
appraisal for rewarding and increments.

4. There was a neither formal nor informal discussion on job specification and tasks
to be accomplished for various departments.

5. There is no formal performance appraisal taking place till now in the

organization. This is mainly because certain employees are either on contractual
basis or are new to the organization so no proper record is present in the personnel
files of employees.

93
6. The interpersonal relations and personal biases i.e. liking and disliking influence
the appraisals in the organization.

RECOMMENDATIONS

1. The company should try to avoid employee resistance, which is associated with
change worlds true change follows instance. This for all kinds of systems be it
Performance Appraisal.

2. The HR Dept should attempt to obtain the maximum agreement of Managers in

respect of needs and objectives and purpose of the systems.

3. More stress relieving packages should be offered to the mentally stressed staff.

4. Overtime should be taken care of at time of performance appraisal, which would

motivate the employees to perform better for longer hours.

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 5. Performance appraisal should after at proper span of time.

6. Performance appraisal should be done by expert person.

Here is a suggested format for performance appraisal to the company

SUGGESTED PERFORMANCE EVALUATION FORM

Name of ____________________________________________________________
Employee

Designation ____________________________________________________________

Group ____________________________________________________________

Principal ____________________________________________________________
Evaluator

Please enter your grade from 0 to 10 (NA – for Not Applicable)

Personal Characteristics Self Evaluator Comments

Adherence to company practices

Wor k Pl anni ng

Ability to plan, prioritize and effectively

manage tasks assigned.

Communication

Express ideas and concerns clearly :

Proficient and confident in presentation :

Flexible and effective writing skills :

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Risk Taking

Is willing to take personal risks to advance

new ideas; has to courage to commit resources
based on a blend of analysis and intuition.

Resourcefulness

Adapts to rapidly changing conditions;

mediates differences; demonstrates high level
of initiative, drive and persistence and
involvement

Strategic thinking

Can deal with ideas at an abstract level; has

ability to conceptualize

Team Work

Co-ordination within a team; sensitive

response; develops rapport & trust; solicits
interpersonal feedback

Managerial Proficiency

Understands complex operational issues

quickly and takes appropriate action; executes
well

Integrity

Professional and personal integrity;

Confidentiality of sensitive information

Signature of Candidate Signature of Evaluator

Date : Date:

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Drive Ratings
( Excellent, Very Good, Good, Average, Below average, NIL )

SELF EVAL

Dedication

Responsibility

Initiative

Vision

Enthusiasm

Technical Skills
( To be filled by principal evaluator, as required for the group)

Skill Relative rating among the group

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Signature of Candidate Signature of Evaluator

Date : Date:

Recommended steps for improvements :

Skills / Characteristics Recommended Action

Appraisal History
Date of appraisal Last Designation Last Salary (in Rs.)

Recommended Designation : _____________________________________

Recommended Salary : _____________________________________

Next evaluation date : _____________________________________

Designation Granted : _____________________________________

Salary Granted (Rs.) : _____________________________________

98
From Date : _____________________________________

Signature of principal evaluator Signature of approving authority

Date: Date:

BIBLIOGRAPHY

99
 BIBLIOGRAPHY

BOOKS

• ASHWATHAPPA,K; 5TH EDITION; HUMAN RESOURCE MANAGEMENT

• RAO, V,S,P; HUMAN RESOURCE MANAGEMENT

INTERNET

• http:\\www.google.com

• http:\\www.scribd.com

• http:\\www.citehr.com

100
ANNEXURE

101
 QUESTIONNAIRE ON PERFORMANCE APPRAISAL

SAMPLE QUESTIONNANIRE

I trainee in GREEN GAS LIMITED have undertaken a project on PERFORMANCE

APPRAISAL SYSTEM. The information furnished by you will help knowing the
effectiveness of the present appraisal and reward system and if need be designing of a
new appraisal system. The data will be kept confidential and will be used for academic
purpose only.

1- Are you satisfied with the current performance appraisal system?

a) Yes fully satisfied

b) Partially satisfied

c) Not satisfied

2 – In your opinion what kind of reward motivates you the most?

a) Non-monetary

b) Both

c) certificates

3– What does appraiser mostly point out at the time of performance appraisal?

a) Your Strength

b) Your weakness

c) Both

4 – In your opinion who should be the appraiser?

a) Superior

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 b) Peer and subordinate

c) Subordinates

d) All

5 – Do you think that there is gender biasness while appraising performance in your
organization?

a) Yes

b) No

6 – Are you provided with proper training facility to improve your performance?

a) Yes

b) No

7 – Does the current performance appraisal strengthen the employee relationship?

a) Yes

b) No

8 – In your opinion what should be the cycle of performance appraisal?

a) Yearly

b) Half yearly

c) Quarterly

9 – Comment on your last performance appraisal?

a) Inspiring

b) Worthwhile

c) None

103
10 – Do you think both positive and negative feedback are shared in same manner by
appraise?

a) Yes

b) No

11- Do you think proper communication between superior and subordinate after
performance appraisal is

a) Highly essential

b) Less essential

c) essential

d) Not required

12 – Is performance appraisal system essential to improve upon your personal skill?

a) Yes

b) No

13 – Do you think work done by you is prompt and perfect?

a) Perfect

b) Satisfactory

c) Not up to the mark

14 – Are your subordinates skillful enough to help you in decision making?

a) Highly skilled

b) Less skilled

c) Unskilled

15 – Reward and recognition in the company is done on the basis of:

104
 a) Knowledge and expertise

b) Confidence and performance

c) Both a and b

16 – What do you think about 360 degree appraisal?

a) Good

b) Average

c) Bad

17 – Do you think 360 degree performance appraisal system should be applied in this
organization?

a) Yes

b) No

18 – According to you performance appraisal should be done in which manner?

a) Face to face appraisal

b) Written appraisal

c) Both

105
106