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A RESEARCH REPORT ON
"TO ANALYZE THE PRESENT PERFORMANCE APPRAISAL SYSTEM OF NTPC LTD."

REPORT SUBMITTED FOR THE REQUIREMENT OF THE DEGREE OF MBA (IV SEM) (AFFILIATED TO U.P. TECHNICAL UNIVERSITY, LUCKNOW)

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DECLARATION

I , do declare that the research report being submitted to the U.P. Technical University for the partial fulfillment of the requirement for the degree of Master of Business dministration is my o!n endeavors and it has not been submitted earlier to any institute for any degree

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ACKNOWLEDGMENT

research is incomplete and tas# is not accomplished if a note and mentioning of the persons involved is not made$ !ithout !hom the pro%ect !ould have not been completed. To begin !ith I am indebted ! $ my pro%ect guide$ for his valuable guidance & help throughout my !or#. I am also than#ful to all the faculty members for the inspiration and discussion provided by them$ !hich led to the present shape of the pro%ect. It has been an honour to !or# on the pro%ect under the supervision of these people.

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PREFACE

It gives me great pleasure to bring out this pro%ect study entitled( ) T! "#"$%&' (' )*'+'# )'*,!*-"#.' "))*"/+"$ +%+ '- !, N" /!#"$ T('*-"$ P!0'* C!*)!*" /!# L 1.*. It is interesting and at the same time$ challenging also to analy+e the performance appraisal system of such a large organi+ation. This pro%ect study contains necessary information related to the company vi+. ( its %ourney from the year it !as founded to the present year$ total capacity$ product profile$ mar#et share$ sales figure$ functions of various departments etc. It covers the opinions and e,pectations of the employees in the form of findings. -ecommendations to improve the appraisal system have also been included. The procedure adopted to conduct the survey and collection of information is also described in the study. It is hoped that the suggestions recommended in the study !ould be !elcomed and implemented by the management of the organi+ation after proper consideration.

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TABLE OF CONTENTS
CHAPTER 23 CHAPTER 5( E4ECUTIVE SUMMARY PROFILE OF THE COMPANY (A) INTRODUCTION (B) HUMAN RESOURCE POLICY (C) FUNCTIONS OF VARIOUS SECTIONS OF HR DEPARTMENT (D) HISTORY (E) PRODUCT PROFILE (F) SALES FIGURES6 MARKET SHARES (G) ORGANISATION CHART CHAPTER 73 CHAPTER 83 PERFORMANCE APPRAISAL RESEARCH METHODOLOGY (A) OB9ECTIVE OF STUDY (B) SCOPE OF STUDY (C) RESEARCH PROCEDURE (D) TYPE OF DATA (E) DATA COLLECTION (F) STATISTICAL TOOLS USED (G) LIMITATIONS OF STUDY

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CHAPTER :3 CHAPTER ;3 ANNE4URE

FINDINGS AND ANALYSIS CONCLUSION AND SUGGESTIONS 2. BIBLIOGRAPHY 5. QUESTIONNAIRE

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E4ECUTIVE SUMMARY
In my pro%ect$ entitled()T! "#"$%&' (' )*'+'# )'*,!*-"#.' "))*"/+"$ +%+ '!, N" /!#"$ T('*-"$ P!0'* C!*)!*" /!# L 1.*$ I have studied the present appraisal system of 1TP2 by analy+ing the details of the appraisal system$ articulate the organi+ational$ functional$ departmental & individual ob%ectives $ factors in business dynamics to grade employees on ob%ectives & transparent productivity parameters$ self appraisal follo!ed by reporting officer & higher authority3s assessment $ lin# bet!een re!ards and performance to increase motivation level of employees $ assessment of training & developmental needs of the individuals and ma#e them a!are about the parameters used to evaluate their performance. In my o!n style$ I have tried to find out !hether the present appraisal system is effective enough to serve the purpose of performance appraisal i.e. to understand the needs of employees and provide them formal & regular feedbac# related to their performance. 4or this purpose$ I used questionnaires to get the opinions of employees at different levels. I also !ent through different boo#s$ !ebsites and maga+ines to gather material related to the topic. fter collecting the

information$ I analy+ed the data and provide the necessary suggestions to improve the system.

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PROFILE OF THE COMPANY INTRODUCTION

1ational Thermal Po!er 2orporation 6imited 71TP28 is the largest thermal po!er generating company of India. public sector company !holly o!ned by

9overnment of India$ it !as incorporated in the year 1:0. to accelerate po!er development in the country. ;ithin a span of "< years$ 1TP2 has emerged as a truly national po!er company= !ith po!er generating facilities in all the ma%or regions of the country. Based on 1::5 data$ carried out by >ata monitor U?$ 1TP2 is the /th largest in terms of thermal po!er generation and the second most efficient in terms of capacity utili+ation amongst the thermal utilities in the !orld.

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1TP2@s core business is engineering$ construction and operation of po!er generating plants and also provides consultancy to po!er utilities in India and abroad. s on date the installed capacity of 1TP2 is 21$0': M; through its 1" coal based 710$'5< M;8$ 0 gas based 7"$:.. M;8 and " Aoint Benture Pro%ects 7"1' M;8. 1TP2 acquired .<C equity of the D I6 Po!er Dupply 2orporation 6td. 7DPD268. This AB company operates the captive po!er plants of >urgapur 712< M;8$ -our#ela 712< M;8 and Bhilai 70' M;8. 1TP2 is also managing Badarpur thermal po!er station 70<. M;8 of 9overnment of India. 1TP2@s share on "1 Mar 2<<' in the total installed capacity of the country !as 1:.'C and it contributed 20.1C of the total po!er generation of the country during 2<<"(<'. 1TP2 has set ne! benchmar#s for the po!er industry both in the area of po!er plant construction and operations. It is providing po!er at the cheapest average tariff in the country. ;ith its e,perience and e,pertise in the po!er sector$ 1TP2 is e,tending

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consultancy services to various organi+ations in the po!er business. 1TP2 has entered into a %oint venture !ith lstom$ 9ermany for renovation and moderni+ation of po!er plants in India. 1TP2 is committed to the environment$ generating po!er at minimal environmental cost and preserving the ecology in the vicinity of the plants. 1TP2 has underta#en massive afforestation in the vicinity of its plants. Plantations have increased forest area and reduced barren land. The massive afforestation by 1TP2 in and around its -amagundam Po!er station 721<< M;8 has contributed reducing the temperature in the areas by about "Ec. 1TP2 has also ta#en proactive steps for ash utili+ation. In 1::1$ it set up sh Utili+ation >ivision to manage efficient use of the ash produced at its coal stations. This quality of ash produced is ideal for use in cement$ concrete$ cellular concrete$ building material. F2entre for Po!er Gfficiency and Gnvironment Protection 72G1PGGP8 has been established in 1TP2 !ith the assistance of United Dtates gency for International >evelopment. 7UD I>8. 2G1PGGP is efficiency oriented$ eco(friendly and eco( nurturing initiative ( a symbol of 1TP2@s concern to!ards environmental protection and continued commitment to sustainable po!er development in India. s a responsible corporate citi+en$ 1TP2 is ma#ing constant efforts to improve the socio(economic status of the people affected by its pro%ects. Through its -ehabilitation and -esettlement programmes$ the company endeavors to improve overall socio( economic status of Pro%ect ffected Persons. 1TP2 !as among the first Public Dector Gnterprises to enter into a Memorandum of

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Understanding 7MHU8 !ith the 9overnment in 1:50(55. 1TP2 has been Placed under the @G,cellent category@ 7the best category8 every year since the MHU system became operative. -ecogni+ing its e,cellent performance and vast potential$ 9overnment of the India has identified 1TP2 as one of the %e!els of Public Dector @1avratnas@( a potential global giant. Inspired by its glorious past and vibrant present$ 1TP2 is !ell on its !ay to reali+e its vision of being Fone of the !orld@s largest and best po!er utilities$ po!ering India@s gro!thF.

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HUMAN RESOURCE POLICY POWERING INDIA<S GROWTH= THROUGH PEOPLE

1TP2 strongly believes in achieving organi+ational e,cellence through Iuman -esources and follo!s FP'!)$' F/*+ F approach to leverage the potential of its 2"$.<< employees to fulfill its business plans. Iuman -esources 4unction has formulated an integrated I- strategy !hich rests on four building bloc#s of Ivi+. 2ompetence building$ 2ommitment building$ 2ulture building and Dystems building. ll I- initiatives are underta#en !ithin this broad frame!or# to

actuali+e the H R V/+/!# of Fenabling the employees to be a family of committed !orld class professionals ma#ing 1TP2 a learning organi+ationF. To induct talent and groom them into a dedicated cadre of po!er professionals FG,ecutive TraineeF Dcheme !as introduced in the year 1:00 for recruitment in the disciplines of Mechanical$ Glectrical$ 2ivil$ 2ontrol & Instrumentation and no! encompasses 2omputer Dcience$ 2hemistry$ I- and 4inance disciplines also. Besides a comprehensive one year training comprising theoretical inputs as !ell as on(the(%ob training$ the ne! recruits are attached !ith senior e,ecutives under a systematic and formal @Mentoring Dystem@ of the company to integrate them into the 2ulture of the company. s part of post employment training and

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development opportunities$ a systematic Training plan has been formulated for ensuring minimum seven man days training per employee per year and includes level(!ise planned intervention designed to groom people for assuming positions of higher responsibility$ as !ell as specific need(based interventions based on scientific Training 1eeds nalysis. 1TP2 has created 1. pro%ect training

centres$ 2 simulator training centres and an ape, institute namely @Po!er Management Institute@ 7PMI8. ;hile the pro%ect training centres 7Gmployee >evelopment 2entres8 have speciali+ed in imparting technical s#ills and #no!ledge$ PMI places emphasis on management development. Besides opportunities for long term education are also provided through tie ups !ith reputed Institutions li#e IIT$ >elhi$ 7M.Tech in Po!er 9eneration Technology8$ M>I$ 9urgaon 7G,ecutive MB programme8$ BITD$ Pilani 7B.Tech8 etc. In order to reali+e the I- Bision of ma#ing 1TP2 a learning Hrgani+ation by providing opportunities to continually learn ne! capabilities a number of initiatives have been ta#en. 1TP2 Hpen 2ompetition for G,ecutive Talent 7NOCET8 is organi+ed every year in !hich teams of e,ecutives compete annually through oral and !ritten presentation on a topical theme. Dimilarly FP*!,'++/!#"$ C/*.$'+F have been formed department(!ise !here G,ecutives of the department meet every fortnight to share their #no!ledge and e,periences and discuss topical issues. In order to tap the latent talent among non e,ecutives

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and ma#e use of their potential for creativity and innovation$ Q>"$/ % C/*.$'+ have been set up in various unitsJoffices in 1TP2. Besides a management %ournal called FH!*/&!#F is published quarterly to enable the employees to share their ideas and e,periences across the organi+ation. >emonstrating its high concern for people$ 1TP2 has developed strong employee !elfare$ health & !ell(being and social security systems leading to high level of commitment. 1TP2 offers best quality of life through beautiful to!nships !ith all amenities such as educational$ medical and recreational opportunities for employees and their family members. The motivation to perform and e,cel is further enhanced through comprehensive 1TP2 -e!ards and -ecognition system. In order to institutionali+e a strong 2ulture based on Balues a number of initiatives are ta#en to actuali+e the Bision and 2ore Balues 72HMIT8 across the company. culture of celebrating achievements and a strong focus on

performance are a !ay of life in 1TP2. 1TP2 has institutionali+ed F>evelopment 2entersF in the company to systematically diagnose the current and potential competency requirements of the employees !ith the ob%ective of enhancing their development in a planned manner. These 2enters give a good insight to the employees about their strengths and !ea#nesses$ the gaps in their competencies !hich they can bridge through suitable support from company. >ue to innovative people management practices there is a high level of pride and

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commitment amongst employees as reflected in the FB'+ E-)$!%'*+ /# I#1/"3 5??7F survey by Ie!itt ssociates in !hich 1TP2 bagged coveted third ran#.

4urther continuous efforts are being made by I- function to leverage the potential of its employees and become a strategic business partner.

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FUNCTIONS OF VARIOUS SECTIONS OF H.R. DEPARTMENT

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FUNCTIONS OF HR3EB (EMPLOYEE BENEFIT) SECTION 1. ESTABLISHMENT

7 8 Berification of characters & antecedent as per govt. directions 7procedure being follo!ed in 2 & > categories8. 7B8 2hec#ing of Dubmission of relevant and complete document before %oining. 728 2hec# !hether the personal file is complete in all respect$ especially nomination papers$ %oining formalities etc. 7>8 G,tent of annual assessment being done in case of employees 7i.e. no. of complete reports received & total no. of employees8. 7G8 -evie! discussion !ith e,ecutive before annual assessment. 748 ppoint appraising authorities for different levels. 798 2ommunication of adverse remar#s. 7I8 Test for promotion of steno typist & stenographer. 7I8 Promotion of ; 2 to ; " & ; / to D 1 employees. 7A8 Io! is period of unauthori+ed absence being treated in promotion cases. 7?8 Promotion of employees against !hom disciplinary action has been ta#en. 768 Promotion in different categories in time !ith promotion policyJ channel of promotion. 7M8 Period for !hich leave is credited in advance for both e,ecutive & non( e,ecutives. 718 2alculation of amount of salary deducted during IP6.

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7H8 9rant of study leave as per rules. 1umber of employees !ho have been granted study leave. 7P8 >iseases for !hich quantitative leave is sanctioned.

2. ADVANCES
7 8 Iouse building advance J conveyance advance sanctioned strictly as per rules. 7a8 Gligibility 7b8 mount of house building advance. 7c8 2nd advance in case of conveyance. 7B8 Penal interest being charged in case of default under conveyance advance scheme. 728 Dystem of chec# in case surety resigns in IB . 7>8 Iypothecation of vehicle being ensured or not. 7G8 2ommencement of recovery of IB .

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FUNCTIONS OF HR3ES (EMPLOYEE SERVICE) SECTION 1. EMPLOYEE SERVICES @ OFFICE MANAGEMENT SYSTEM
7 8 To fulfill the requirements of furniture in different departments of the company. 7B8 Issuance & entitlement of different items to various employees !ith in the company. 728 To ensure proper allotment of office space for officer3s cabins. 7>8 To manage all activities related to BBIP3D visits.

2. TOWNSHIP ADMINISTRATION
7 8 llotment of quarters to employees according to the availability of quarters & priority of the employee.

TYPES OF QUARTERS
type ( 4or all employees B type ( 4or ;5 & above 2 type ( 4or G" & above > type ( 4or G. & above 7B8 -egarding education policy 1TP2 provides only infrastructural help li#e building$ furniture etc. for education institute. 728 -esponsibility of security of plant & to!nship both. 4or plant security 2ID4 personnel are deployed !hile for to!nship security private guards are used.

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7>8 ;elfare activities include ladies clubs$ canteen$ resident3s !elfare associations etc. 7a8 2ompany provides -s. 11<< for marriage & a car for " days to the employee. 7b8 Picnics upto 15< #ms. are organised by the company for employees. 7c8 2ompany also pays :< C of the tour to the employee once in a year.

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FUNCTIONS OF HR3IE (INDUSTRIAL ENGINEERING) SECTION 1. RECRUITMENT

7 8 IG section is responsible for recruitment of traineesJapprentices 7ITI$ diploma and certificate holders8. 7B8 They also engage visiting doctors for the dispensary of the company on temporary basis. 728 There is a provision of recruitment of fi,ed number of physically handicapped employees in the company.

2. MANPOWER PLANNING
7 8 -edeployment of employees li#e draftsman$ operator etc. to other departments$ !here they are required. 7B8 IG section also loo# after the complete Iuman -esource Management Dystem of the company. 728 They address the grievances of the employees and provide information to the management. 7>8 They are engaged in the transfers of the employees !ith in the pro%ect i.e. BTPD. 7G8 They give incentives to the employees for their good performance.

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TYPES OF INCENTIVES
7a8 AM'*/ !*/!>+ )*!1>. /B/ % "0"*1< given on 2/th Aanuary & 1.th the form of cash. 7b8 AS "* !, (' -!# ( "0"*1< given on monthly basis in non monetary form. 7c8 AB"1"*)>* B(>+("# "0"*1< given yearly to those employees !hose last " years performance is outstanding. ugust in

". EMPLOYEE DEVELOPMENT

7 8 There is a suggestion scheme for employees in !hich they can give their suggestions to the management of the company. 7B8 2ompany also has %ob rotation policy for the employees. 728 IG section also carry out a quarterly maga+ine called KDan#alp3 in !hich different informations are included.

'. PROMOTION
7 8 Promotions of non e,ecutive employees are carried out by IG section. 7B8 They provide information to the corporate office regarding promotion of e,ecutive employees.

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FUNCTIONS OF HR3ER@W (EMPLOYEE RELATION @ WELFARE) SECTION

Badarpur Thermal Po!er Dtation has t!o tier system of !or#ing( 7 8 9eneral staff 7from 5."< a.m. to ..<< p.m 8 7B8 Hperation staff 7!or# in " shifts8 The po!erhouse runs on 2' hrs. basis and different operational activities are carried out continuously. 4or general staff Dundays are !ee#ly off !hile for the operational staff every 'th day is off. -egarding !elfare activities of the employees$ both statutory & non statutory facilities are provided.

STATUTORY FACILITIES
7 8 2anteen facility for brea#fast$ lunch & dinner is provided to the employees. 7B8 -est rooms for the purpose of rela,ation are also available for employees. 728 There are separate toilets for ladies & gents in the company.

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NON STATUTORY FACILITIES

7 8 ccommodation facility is provided to the employees of the company. 7B8 There is a provision of education facility to the !ards of the employees. 728 Balbhavan for small childrens for the purpose of their development. 7>8 6adies club & 1TP2 club for recreation purpose of the employees 7G8 2ompany also provides personal accident insurance to the employee. 748 Iouse building and conveyance advances are given to the employees. .

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COMPANY PROFILE
November, 1975 4oundation laid for 1TP2. December, 1976, The first super thermal po!er pro%ect at Dingrauli !as cleared by 9overnment of India. modest beginning !ith strong determination and high spirits$ moving n organi+ation symboli+ing reliability$ ahead$ gathering pace and heading on to !hat is today pro%ected as a benchmar# in the po!er generation sector. 1TP2 ( the company !as continuous and speedy. Year 1978 The year sa! the initiation of a lot of developmental activities. Implementation of -amagundam and ?orba Pro%ects !as cleared by 9overnment of India. 2onstruction of the Dingrauli(?anpur line of '<< #B initiated. nother opportunity came across in the form of the handover of Badarpur to 1TP2 by 2entral 9overnment for better management and improved performance. The 4ara##a pro%ect !as also approved by the 9overnment Year 1982 Dteering ahead !ith times$ by this year$ the first unit of 2<< M; of Dingrauli$ !as successfully commissioned on 4ebruary 1". The -ihand pro%ect !as also strength and a responsible gro!th !as born. The e,pansion and advancement of

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cleared by 9overnment of India !ith British assistance. The first unit of the ?orba pro%ect !as commissioned and the -amagundam pro%ect began commercial operation by 1:5". Year 1984 technological revolution ( a brea#through in po!er transmission. for the first time$ the IB>2 7Iigh Boltage >irector 2urrent8 technology employed for po!er transmission from -ihand to >elhi. The ;orld Ban# agrees to provide L '5. million for three combined cycle pro%ects at ?a!as$ uraiya and nta. Year 1986 1TP2 entered into the .<< M; era by synchroni+ing its first .<< M; unit at Dingrauli in 1:5/. 4ara##a also entered operational phase. Year 1987 The first bud so!n by 1TP2 burst full bloom. The Dingrauli pro%ect achieved the full capacity of 2<<< M;. The ?orba pro%ect added first .<< M; Unit. ?eeping in line !ith all the developmental activities$ the first 21< M; unit of Bindhyachal pro%ect$ !hich no! has a capacity of 22/< M;$ also came on stream. The first unit of .<< M; at -ihand !as also commissioned by year 1:55. Year 1989 To serve the po!er sector in India and abroad ( the 2onsultancy ;ing !as launched... acting as a !indo! for the globali+ation of 1TP2 operations.

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capacity addition of "$2"' M; !as made at ?orba$ -amagundam$ Bindhyachal$ -ihand$ uraiya and nta together. Year 1990 1TP2@s first gas based combined cycle po!er plant at pro%ect. Year 1992 Unchahar pro%ect !ith a capacity of '2< M; !as ta#en over from the Uttar Pradesh -a%ya Bidyut Utpadan 1igam 7UP-BU18. 1TP2 achieved a complete turnaround in the operation of the station. T!o units !ith a capacity of 21< M; each !ere commissioned by 1TP2 after ta#e over. ?ahalgaon Pro%ect !ent on stream by synchroni+ing its first unit. The ?a!as pro%ect !ith a capacity of /'. M; became fully operational by year 1::". Year 1994 The first unit of Ahanor(9andhar 9as Pro%ect !as synchroni+ed. The 2entre for Po!er Gfficiency and Gnvironmental Pro%ect 72G1PGGP8 !as set up.

nta$ -a%asthan achieves

full capacity. Mear 1::1 sa! the commissioning of the first unit of the >adri

To acquire state(of(the(art technologies and practices to optimi+e performance by plants. To improve efficiency and profitability$ aimed at reducing environmental pollution. To achieve a synergy bet!een environmental concerns and utility needs. The centre proved a great help in minimi+ing the environmental impacts

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of the stations and also preserving the natural ecology in the vicinity of the stations.

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Year 1995 The first .<< M; unit of Talcher Duper Thermal Po!er Pro%ect commissioned. By the year 1::0$ the 9overnment also approved the Dimhadri pro%ect !ith a 1<<< M; capacity and the 4aridabad 9as pro%ect !ith a capacity of '"< M;. Year 1998 By this year$ the first 1aphtha based plant of the country at ?ayam#ulam !ith a capacity of ".< M; came on stream. 1TP2 has been declared !orlds si,th largest thermal po!er producer during 1::5$ by >ata monitor$ U.?. Year 2000 The po!er generation capacity of this premier organi+ation reaches a to!ering high of 1:$'". M; capacities moving to!ards substantial '<$<<< M; capacities by year 2<12. Pursuing its ma%or ob%ectives of planning$ promoting and organi+ing an integrated development of thermal po!er in India. 1TP2@s foray in the Iydro sector. beginning made !ith ?oldam$ the first

Iydro Glectric Po!er Pro%ect !ith a capacity of 5<< M; in Iimachal Pradesh. 1TP2 also too# over Tanda Thermal Po!er Dtation 7''< M;8 of Uttar Pradesh Dtate Glectricity Board 7UPDGB8. Building up !ell defined$ short and long term plans$ !ith committed time schedules$ evolving planned and organised functioning and ensuring dedication$ loyalty and promptitude of those involved. >eveloping a participative

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management culture. >uly recogni+ing the socio(economic needs and aspirations of its employees and underta#ing full scale efforts to meet them. ll these moves leading to industrial harmony and progress of the company. 1TP2( globally recogni+ed organi+ation for commitment to Nuality in !or#s and services. ?eeping pace !ith its ongoing mission of constant$ responsible development and continuous progress and gro!th$ the organi+ation strove to!ards$ improvement everyday. Benturing out$ innovating$ leading on and reaching pinnacles of success. ;inning laurel$ acclaim and appreciation and above all assuming the role of a mar#et leader in the field of po!er generation.

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PRODUCT PROFILE

1TP2 is engaged in generating po!er through its different po!er stations vi+. ( coal based$ gasJliquid fuel based & %oint ventures. Its total commissioned capacity including the %oint ventures is 22$2': M;. It is also managing Badarpur Thermal Po!er Dtation 70<. M;8 of 9overnment of India. In total it has 1" coal based$ <0 gasJ liquid fuel based & <" %oint ventures !ith Dteel uthority of India 6imited. The complete station !ise list !ith respective capacity is given belo!(O

P!0'* S " /!#+ M"#"C'1 D% NTPC

C" 'C!*%
Coal Based Stations Gas Based Stations Joint Ventures Total

N!. !, + " /!#+

14 7 4 25

C")"./ %(MW)
22395 3955 1054 27,404

GDT B6IDIMG1T

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SALES FIGURES AND MARKET SHARES

1TP2 has sho!n a remar#able performance in the areas of operation and maintenance. It once again surpassed all MoU targets for the year 2<<2(<" in the EE.'$$'# category. Dome of the highlights of its e,cellence are(O 1. Turnover of -s.1:$:5'..5 crore and 1et Profit after ta, -s."/<0..0 crore. 2. ;ith 1:C of the country3s installed capacity$ 1TP2 contributed 2/C of electricity. ". 9enerated 1'<.5. Billion Units 7BUs8$ an increase of ..0/C over previous year3s generation of 1"".1: BUs. This is besides the generation of the 1TP2 D I6 %oint venture companies. '. chieved all MoU targets in the e,cellent rating during the year 2<<2(<" for

the 1/th consecutive year. .. -eturn Hn 2apital Gmployed 7-H2G8 and -eturn Hn 1et ;orth 7-H1;8 1<.55C and 12.1"C respectively. /. Total dividend paid for 2<<2(<" is -s. 0<5 crore.

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0. 1<<< M; capacity added during 2<<2(<". The fourth .<< M; unit at Talcher(?aniha has also been synchroni+ed in Hctober$ 2<<". 5. 2apacity addition of over :"0< M; planned for 1<th plan and about 1121< M; for 11th plan. Pro%ects totaling ."<< M; capacity under various stages of construction.

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GM
DGM (HR)

D-.M9-. 7I-(G>28

D-.M9-. 7I-(GD8

D-.M9-. 7I-(G>28 G,ec.&;JM Trg. G> activities

D-.M9-. 76 ;8 lso loo# after G- functions

D-.M9-. 7I-(GB8 lso loo# after !elfare functions

M9-. 7P-8

DTT.H44. 72D-8 .G. 7I-(G>28

M9-. 7I-(GD8 M9-. 7I-(GD8 Dchools & 9.I.

M9-. 7-a%bhasha8

>M.M9-. 7I-(GD8 >M.M9-. 7I-(G-8 >iscp.Matters

>M.M9-. 7I-(G-8;.4

H44. 7I-(GB8

D-.H44. 7I-(GBJIG8

DTT.H44. 7I-(G-&;8

H44. 7I-(GB8

G19-. 7I-(IG8

DTT.H44 7I-(IG8

ORGANISATION CHART OF HR DEPARTMENT AT BADARPUR THERMAL POWER STATION

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PERFORMANCE APPRAISAL DEFINITION

Performance appraisal includes all formal procedures used to evaluate personalities$ contributions & potentials of group members in a !or#ing organi+ation. It is a continuous process to secure information necessary for ma#ing correct and ob%ective decisions on employees. In simple !ords$ performance appraisal is the systematic evaluation of the individual !ith respect to his performance on the %ob and his potential for development.

PURPOSES OF PERFORMANCE APPRAISAL

1. Promotions 2. Transfers ". ;age and Dalary dministration '. Training and >evelopment .. Personnel -esearch /. Delf Improvement

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METHODS OF PERFORMANCE APPRAISAL TRADITIONAL METHODS

1. Unstructured ppraisal 2. Gmployee -an#ing ". 4orced >istribution '. 9raphic(-ating Dcales .. 2hec#(6ists /. 2ritical Incidents 0. 4ield -evie!

MODERN METHODS
1. Management by Hb%ectives 2. Behaviorally nchored -ating Dcales

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BENEFITS OF PERFORMANCE APPRAISAL EMPLOYER<S PERSPECTIVE

1. >espite imperfect measurement techniques$ individual differences in performance can ma#e a difference to the company3s performance. 2. >ocumentation of performance appraisal and feedbac# may be needed for legal defense. ". Performance appraisal dimensions and standards can help to implement strategic goals and clarify performance e,pectations. '. It provides a rational basis for constructing a bonus or merit system. .. Providing feedbac# is a part of the performance management process. /. >espite traditional focus on the individual$ appraisal criteria can include team!or# and teams can be the focus of team!or#.

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EMPLOYEE<S PERSPECTIVE
1. Performance feedbac# is needed and desired by the individual employee to improve hisJher performance. 2. 4airness requires that differences in performance levels across !or#ers be measured and have an effect on the outcomes. ". ssessment and recognition of performance levels can motivate

!or#ers to improve their performance.

PROBLEMS AFFECTING THE VALIDITY OF PERFORMANCE APPRAISAL SYSTEM 1. HALO EFFECT

This type of error occurs !hen the rater allo!s one aspect of a man3s character or performance to influence his entire evaluation.

2. CENTRAL TENDENCY
This error occurs !hen the rater is in doubt about the subordinates or has inadequate information about them or is giving less attention and effort to the rating process.

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". LENIENCY ERROR

Dome supervisors have a tendency to be easy raters. 6enient raters consistently assign high values to their subordinates. This type of error results in !rong evaluation of the performance of subordinate.

'. STRICTNESS ERROR

Dome other types of supervisors have a tendency to be harsh in their ratings. They continuously give lo! ratings to their subordinates.

.. RECENCY EFFECT
Hften some raters evaluate persons on the basis of their performance in recent fe! !ee#s$ average constant behaviour is not chec#ed.

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RESEARCH METHODOLOGY OB9ECTIVES OF STUDY

To identify factors in business dynamics to grade employees on the ob%ectives & transparent productivity parameters. To study about the system of self appraisal$ appraisal by reporting officer$ by revie!ing officer and final assessment by moderation committee. To study about create a direct lin# bet!een re!ards & performance to increase the motivation level of employees. To study about assessment of training & developmental needs of individual employees. To study and ma#e employees completely a!are about the parameters used for evaluation of their performance.

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SCOPE OF STUDY
In Badarpur Thermal Po!er Dtation$ managed by 1ational Thermal Po!er 2orporation 6td.$ there is still sufficient scope for improvement in the performance appraisal system belo! G0 level. 1 .Belo! this level no !eightages are assigned to different attributes !hich differ according to their importance. 2. Belo! G/ level )Management By Hb%ectives* is not follo!ed and hence the employees are not clear about their functions based on these ob%ectives. ". There is no direct lin# bet!een the re!ards and performance of individual employee. '. 4ormal feedbac# is not provided to the employees on regular basis. .. They are not a!are about the parameters on !hich their performance is measured. /. There e,ist communication gap bet!een superiors & their subordinates. ll the above mentioned problems need immediate improvement and attention of the management of the company.

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RESEARCH PROCEDURE STEPS IN RESEARCH

1. Understanding the nature & scope of business$ the organi+ational & departmental structure. 2. Dtudy the e,isting revie! system of the company. ". To collect information from functional heads about the technicalities involved in performance appraisal vi+. ?- 3s & suggested !eightages. '. >iscussion !ith senior officers to understand the e,pectations of the company. .. Meetings !ith employees of different departments to incorporate their vie!s. /. Prepare questionnaires on the basis of above information. 0. Hbtaining the opinions & e,pectations of employees at different levels of the company. 5. 9ather information from different sources li#e boo#s$ maga+ines$ internet etc. about performance appraisal.

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:. Hn the basis of responses from the employees and the information gathered from other sources$ prepared the report !ith mentioning the necessary changes required in the appraisal system.

RESEARCH DESIGN
-esearch design !as adopted for the )EE)$!*" !*% R'+'"*.( S >1%*. The main purpose of the study !as to formulate the problem in appraisal system for investigation. The ma%or emphasis !as on the discovery of ideas & opinions of the employees at different levels to improve the e,isting appraisal system. T!o methods !ere used for the study(O 1. The survey of concerning literature. 2. The e,perience survey

SAMPLING DESIGN
The sampling design used for the study !as )S *" /,/'1 S"-)$/#C*. The different strata or homogeneous groups formed !ere(O 1. G,ecutives 2. Dupervisors ". ;or#man3s

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SAMPLING UNIT
The sampling unit !as )B"1"*)>* T('*-"$ P!0'* S " /!#*$ Badarpur$ 1e! >elhi.

SAMPLE SIZE
In total 78 employees !ere intervie!ed during the study.

DATA COLLECTION METHODS

In the survey t!o types of data !ere collected(O

1. PRIMARY DATA
Primary data are those !hich are collected for the first time and therefore original in nature.

2. SECONDARY DATA
Decondary data are those !hich have already been collected by someone else and hence passed through the statistical process. 4or the collection of primary data follo!ing methods !ere used(O

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7 8 OBSERVATION METHOD
In observation method$ I observed the behaviour & tone of the employees !hile giving the ans!ers. But the style of observation !as unstructured.

7B8 INTERVIEW METHOD

I too# personal intervie!s of the employees at different levels to get their opinions & e,pectations. nd the intervie!s !ere structured in nature.

728 QUESTIONNAIRE METHOD

I prepared a structured questionnaire on the basis of information collected from different sources. The questionnaire contains both open & closed ended questions.

2. SECONDARY DATA COLLECTION

Decondary data !ere collected from the follo!ing sources(O 7 8 Boo#s related to the topic 7B8 2ompany documents 728 Maga+ines 7>8 ;ebsites

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STATISTICAL TOOLS USED

Dtatistical tools used in the pro%ect study are(O 2. TABLES 5. PIE CHARTS 7. BAR GRAPHS 8. LINE GRAPHS

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LIMITATIONS OF STUDY
1. Dome of the documents of the company !ere not accessible due to confidentiality. 2. Many employees didn3t have time to give intervie!s. ". Dome of the employees !ere not very forthcoming in their responses & reluctant to ans!er the questionnaire. '. -esponses of fe! of them !ere biased due to fear of the management. nd some are influenced by the opinions of their colleagues. .. 1ight shift employees !ere unapproachable due to odd timings of their %ob. /. Dome of the employees !ere inaccessible as they !ere absent during the period of survey. 0. The organi+ation !as very large$ so it !as not possible to cover all the departments.

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FINDINGS AND ANALYSIS

N1. The present appraisal system$ according to you$ is an effective one.

25G 7FG Y'+ N! C"#< +"%

:?G

N2. >o you feel comfortable !ith your reporting officer !hile discussing your ?- 3sJ performanceP
5HG Y'+ N! C"#< +"% 25G :HG

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N". re you a!are of the criteria used for your3 performance appraisalP

N'. Is this criterion sufficient to %udge your performanceP

;G
4

8IG

Y'+ N! C"#< +"%

7FG 8IG

58G Y'+ N!

C"#< +"% 7FG

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N.. The formal appraisal done by the organi+ation matches your self assessment.

52G 58G N/. Monetary & non monetary re!ards are given to you are based on Y'+ your performance appraisal rating.
N! C"#< +"%

;G

::G

5HG

Y'+ N! C"#< +"%

;:G

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N0. The formal feedbac# and development of ne! or better %ob related s#ills are in accordance !ith your performance appraisal.

5;G

75G

Y'+ N! C"#< +"%

85G N5. In case of adverse entry$ is it properly and timely communicated to you and do you get sufficient opportunity to appeal to the higher authoritiesP

88G

52G
Y'+ N! C"#< +"%

7:G

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N:. 4ormal appraisal system helps in discovering your true potential for higher responsibilities.

52G

75G

Y'+ N! C"#< +"%

8IG

N1<. >o you thin# sufficient time has been given to you for discussion and guidance to improve your performanceP

9% 38% Y'+ N! C"#< +"% 53%

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N11.The performance appraisal system helps superiors to #no! their employees in better !ay.

2:G Y'+ N! C"#< +"% 7:G :?G

N12. Performance appraisal system helps in reducing communication gap bet!een the superiors and subordinates.

the

58G 5HG Y'+ N! C"#< +"% 8IG

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N1". Mid(term revie! 7after / months8 of employee3s performance$ belo! G/ level$ instead of annual revie! is beneficial.

75G Y'+ N! C"#< +"% HG :HG

N1'. Introduction of a computeri+ed system !ill ma#e the performance appraisal system more effective.

75G Y'+ N! C"#< +"% HG :HG

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FINDINGS AND ANALYSIS

Hn the basis of the survey conducted$ follo!ing points has emerged out !hich require the attention of the management(O 1. The present performance appraisal system belo! G0 level is not effective enough to serve the purpose of employee3s appraisal. 2. Belo! G/ level the )Management by Hb%ectives* approach is not follo!ed and hence the employees are not clear about their functions based on these ob%ectives. ". Proper !eightages are not assigned to different attributes !hich differ in their importance. '. Many employees are not a!are about the criterion used for their appraisal. .. ccording to those !ho #no! about the criterion$ it is not sufficient

to %udge their performance. /. There is a !ide gap bet!een the self assessment by the employee and the formal appraisal done by the organi+ation.

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0. There is no provision of incentives to the individual employee based on hisJher performance appraisal rating. 5. 4ormal feedbac# is not provided to the employees on regular basis. :. The appraisal system does not help the employees to discover their true potential for higher responsibilities. 1<. Gmployees do not get sufficient opportunity to appeal to the higher authorities in case of adverse entry. 11. There is considerable amount of communication gap bet!een the superiors & subordinates. 12. 1o emphasis is given on the behavioral aspect of the employees !hich affect their performance considerably. 1". Training is not provided to the employees on the basis of hisJ her performance appraisal rating.

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CONLUSION AND SUGGESTIONS

1. )Management by ob%ective* approach should be introduced belo! G/ level and upto G1 level$ so that e,ecutives at lo!er levels should also be a!are about their functions based on these ob%ectives. 2. Before setting the ?- 3s$ the employees should prepare themselves by revie!ing their !or# beforehand$ identifying barriers they faced in doing their %obs and refamiliarise themselves !ith their %ob descriptions$ %ob responsibilities etc. ". ppraise should be allo!ed to present their o!n opinions and

perceptions freely but in a calm and factual manner. '. Performance appraisal should not be concentrated to forms only but on its purpose of performance improvement by removing barriers to %ob success. .. Both appraiser & appraise should combinedly set realistic targets that can be achievable$ other!ise the procedure of setting ?- 3s is !astage of time. /. ;eightages should be assigned to different attributes according to their importance.

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0. 4ormal feedbac# should be provided on regular basis to the employees$ so that problems can be prevented in their early stages. It3s a t!o !ay communication process$ therefore a subordinate can also initiate the process. 5. -eporting officer should ma#e the employees a!are about the criterion used for their performance appraisal. :. Monetary & non monetary incentives should be given to the individual employee on the spot$ by the manager$ based on their performance. It !ill motivate the employee. 1<. Behavioral aspect of the employee should be given due importance !hile revie!ing his performance. 11. Training should be provided to the employee on the basis of hisJ her performance appraisal rating. It !ill help himJher to get ne! s#ills. 12. The procedure of performance appraisal should be transparent in the sense that the employee should be a!are about hisJher appraisal rating. 1". 2ommunication gap bet!een the appraiser & appraise should be reduced by means of performance appraisal & regular meetings. 1'. Ma#e employees more accountable to!ards their duties and responsibilities.

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1..

fter the level of manager$ there should not be fi,ed time limit for

promotion and employees get higher responsibilities on the basis of their potential and aptitude. Do$ there should be potential appraisal along !ith performance appraisal at this level and above. 1/. computeri+ed system should be introduced to fill the forms and

submission at supervisor level and above. It !ill reduce the time required to do appraisal and at the same time bring transparency bet!een the appraisers and appraise$ as heJshe can see hisJher ratings on the computer !henever they !ant. pass!ord should also be assigned to the employee to #eep hisJher ratings confidential.

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BIBLIOGRAPHY BOOKS
Iuman -esource Management ( T. 1. 2hhabra Iuman -esource Management ( 9ary >essler Iuman -esource & Personnel Management ( ?. sh!athappa -esearch Methodology ( 2.6.?othari Mar#eting -esearch ( Iarper ;. Boyd$ -alph ;estfall$ Dtanley 4. Dtasch

MAGAZINES
Business ;orld Business Today Hutloo# The Times of India The Iindu Business Dtandard 6ine

WEBSITES
!!!.ntpcindia.com !!!.ntpc.co.in !!!.google.com !!!.toolpac#.com

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!!!.bpubs.com

QUESTIONNAIRE
1 The present appraisal system$ according to you$ is an effective one. MGD 1H 2 13T D M

2 >o you feel comfortable !ith your reporting officer !hile discussing your ?- 3sJperformanceP MGD 1H 2 13T D M

" re you a!are of the criteria used for your performance appraisalP MGD 1H 2 13T D M

' Is this criterion sufficient to %udge your performanceP MGD 1H 2 13T D M

. The formal appraisal done by the organi+ation matches your self assessment. MGD 1H 2 13T D M

/ Monetary and non monetary re!ards given to you are based on your performance appraisal rating. MGD 1H 2 13T D M

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0 The formal feedbac# and development of ne! or better %ob related s#ills are in accordance !ith your performance appraisal. MGD 1H 2 13T D M

5 In case of adverse entry$ is it properly and timely communicated to you and do you get sufficient opportunity to appeal to the higher authoritiesP MGD 1H 2 13T D M

: 4ormal appraisal systems help in discovering your true potential for higher responsibilities. MGD 1H 2 13T D M

1< >o you thin# sufficient time has been given to you for discussion and guidance to improve your performanceP MGD 1H 2 13T D M

11 The performance appraisal system helps superiors to #no! their employees in better !ay. MGD 1H 2 13T D M

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12 Performance appraisal system helps in reducing the communication gap bet!een the superiors and subordinates. MGD 1H 2 13T D M

1" Mid(term revie! 7after / months8 of employee3s performance$ belo! G/ level$ instead of annual revie! is beneficial. MGD 1H 2 13T D M

1' Introduction of a computeri+ed system !ill ma#e the performance appraisal system more effective. MGD R'"+!#+= 2 2 " 1. Mour valuable suggestions to further improve the performance appraisal system. DuggestionsO 1 2 " 2ategoryO DupervisorJ e,ecutive 1H 2 13T D M