SUMMER TRAINING REPORT

ON
PERFORMANCE APPRAISAL
IN
HINDUSTAN AERONAUTICS LIMITED
IN LUCKNOW CITY

Submitted to Partial Fulfillment for the Award of

Degree in Bachelors of Business Administration

UNDER THE GUIDANCE OF: SUBMITTED BY:

Mr. Satish Srivastava Lucky Rawat
(H.O.D) BBA Vth Sem.
Roll No. 17109000753

SARDAR BHAGAT SINGH COLLEGE OF HIGHER

EDUCATION LUCKNOW
(Session- 2016-19)
 DECLARATION

I, Lucky Rawat hereby declare that the Summer Training Report

PERFORMANCE APPRAISAL IN HINDUSTAN AERONAUTICS

LIMITED IN LUKNOW CITY, is under taken by me to fulfilment the

requirement of BBA Session 2016-2019 Under Sardar Bhagat Singh

College Of Higher Education Lucknow.

This work is original and all information furnished by me is correct to the

best of my knowledge.

Lucky Rawat
BBA Vth Sem.
Roll No. 17109000753

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 ACKNOWLEDGEMENT

Accomplishment of tasks and objective is achieved by guidance and blessings

of God, My parents, elders, teachers, nears and dears and of course by the

grace of Almighty. It is a great opportunity for me to register my acknowledgements

to all of them.

I wish to acknowledge my deep sense of gratitude to Mr. Satish Srivastava project

Guide and all faculty of BBA Department for accomplishment of this project report as

well as for every sphere pertaining to successful occupation of this course. Finally, I

pay my regards to all, who directly or indirectly helped in collection, compilation,

editing and other related works for accomplishment of this project study.

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 PREFACE

A project is a scientific and systematic study of real issues on a problem with the

application of management concept and skills. The study can deal with small or big

issues in any division of an organization. It can be case study where a problem has

been dealt with, through the process of management. The essential equipment of a

project this that, it should contain scientific collection of data, analysis and

interpretation of data leading to valid conclusion.

A research project is an essential part in BBA curriculum. It enables the student to

share the real experience in industry.

The topic of my project was “Performance Appraisal”

The study & report is based on Performance Appraisal of the organization. It presents

some information regarding the basics of Performance Appraisal along with details of

character role (C.R) Entries as a tool for evaluation of performance.

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 TABLE OF CONTENT

TITLE Page No.

1. Introduction 1-16

2. Company Profile 17-74

3. Objective of Study 75-76

4. Research Methodology 77-81

5. Data Collection and its analysis 82-89

6. Conclusion 90-91

7. Limitation 92-93

8. Recommandation 94-95

Bibliography

Questionnaire

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 Company Profile

INTRODUCTION

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 Company Profile

INTRODUCTION

PERFORMANCE APPRAISAL IN HINDUSTAN AERONAUTICS LIMITED

An Overview

Hindustan Aeronautics Limited, a public sector organization, engaged in

manufacturing defence related products, has Performance Appraisal and Review

(PAR) System. It is an annual exercise, with quarterly task setting and evaluation. The

criteria of appraisal are the evaluation of job performance and traits of the appraisee.

The system is based on work planning, self review and performance analysis.

Appraisal is done at more than two levels. A critical analysis of the system has been

done in this project.

Steps In Performance Appraisal

 Establishment and Identification of desired standards for Performance

 Communication of Performance Appraisal expectations to employees to enable

them to understand the way in which the employees are expected to perform their

job.

 Measurement of the actual performance by means of Performance Appraisal

Reports, Periodical/Annual Confidential Reports, Statistical Reports, Written or

Oral Reports. These documents are actually basic record to appraise the

performance of the employees.

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 Comparison of Actual Performance with the Standards designed and identified by

the Organization. This will become a judgment of the potential of the growth of

the employee and his periodical advancement.

 Communication of the appraisal reports to the employees to correct themselves of

the deficiencies if any pointed out and to generate effective performance in future.

This will help the employees to improve their performance in future in a better

way. Moreover, the weak points, difficulties with them will be known to them in a

better understanding way.

 Initiating action to remove barriers wherever necessary. It provides an opportunity

to employees to make themselves to generate more effectively in their day to day

work job by means of various measures that are adopted by the Management to

improve their skills by in-service trainings, On-Job training methods etc.

Process of Performance Appraisal

Performance appraisal is not only about evaluating and judging the performance of

the employees. The process of performance appraisal starts with setting the objectives

of the performance appraisal, using methods for performance appraisal which are

important to reach the objectives and then finally the enhancement of the performance

of the employees based on the collected data.

In HAL, the process for the performance appraisal of the employees is as follows:

1. Objectives of performance appraisal: The performance appraisal basically has

the same objectives across all the organisations. HAL too, has almost the same

objectives but it still has certain shortcomings which need to be overcome. Basically

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 Company Profile

the objectives of the performance appraisal system which are being met by HAL are

the following:

 Give feedback on performance to employees.

 Identify employee training needs.

 Document criteria used to allocate organizational rewards.

 Form a basis for personnel decisions: salary increases, promotions, disciplinary

actions, etc.

 Provide the opportunity for organizational diagnosis and development.

 To assess the potential and the performance of the employee.

2. Establishing job expectations: In HAL, the job is clearly defined for the employee

and the targets are set mutually by the senior and the subordinate with a mutual

consent of both. In fact, the quarterly tasks those are assigned and evaluated on a

quarterly basis also known as MATI. In this system the senior and the subordinate sit

down and discuss about the quarterly task and targets for the 3 months.

3. Design an appraisal program: The performance appraisal program is set. The

following are the points taken care of while designing an effective appraisal program:

a. Clear and achievable targets are set for the employees with mutual consent.

b. Various scales and methods are used to avoid any kind of biasedness.

c. The system of appraisal is a two-tier system including the initiating authority

and the reviewing authority.

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d. The appraisal program is held once in a production year with quarterly task

settings.

Note: In case of any discrepancy between the decision of the initiating authority and

the reviewing authority, the decision of the reviewing authority is considered as final.

4. Performance Interview: The employee is interviewed before and after the

performance appraisal. Before the appraisal is done, the employee is interviewed to

set the targets with a mutual consent while after the appraisal is done, the superior

tries to interact with the employee and tell him the area of his weakness and strength.

PERFORMANCE APPRAISAL: AN INSIGHT INTO THE PERFORMANCE

APPRAISAL SYSTEM OF HAL

Human Resource Cell In Hindustan Aeronautics Limited

The performance appraisal of the employees in HAL is taken care of by the Human

Resource Cell. The human resource cell takes care of other activities like

performance appraisal, performance management, knowledge management,

competency ranking etc. In short, it deals with the employee data and makes

appropriate use of the data.

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 Company Profile

Performance Appraisal Period In HAL

In HAL, the performance appraisal is done once in a year though the task setting are

done quarterly or once in every three months. The scores given to an employee

throughout the four quarters in a year are averaged out and are considered as the final

score which will now be subjected to analysis by the higher authorities.

The performance appraisal reports in HAL are annual and were therefore initially

known as ANNUAL PERFORMANCE APPRAISAL REPORTS but now they are

known as ANNUAL CONFIDENTIAL REPORTS.

Depending on the periodicity of these performance appraisal reports, there is another

kind of report which is known as Probationary Report. This report is for those

employees who are neither trainee nor are they permanent employees. They are under

a probationary period and at any time, can be taken off for any misconduct.

THE PERFORMANCE APPRAISAL SYSTEM IN HAL

1. Quarterly task setting and MATI: MATI, also known as Mutually Agreed Task

and Improvement is done once in every quarter of the production year. This is done

with a mutual consent of both the senior and the subordinate. The subordinate is

marked by his immediate superior based on his achievements in the tasks set for him

in the respective quarter.

MATI actually reflects the Management By Objectives (MBO). In the process of

MBO, specific measurable goals are set with each employee and then there is a

periodic reviewing of the progress made.

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A rough sketch of MATI quarterly task setting and its review is given.

Note: This is not an official format but has been given just for the basic understanding

of the reader. The official format of MATI is given in Annexure 4.

Period: April to June

Task Weightage Target Achievement* PI%** Score

1
2 60%
3
4
5
Improvement 40%
task***

2. The two tier system: In the two tier system, there is an initiating authority and a

reviewing authority. The initiating authority includes the immediate superior of the

employee who is in direct contact with the employee. He is from the same department

as the employee. The reviewing authority is the head of the department in most of the

cases. In certain cases, the reviewing authority may be from different department but

it rarely happens.

3.Self-Appraisal: An employee is given opportunity to highlight his achievements

and even mark himself for the same. Once an employee has marked himself, the

initiating authority and the reviewing authority mark him for the same and even

comment on the self-appraisal of the employee. The attributes on which an employee

is marked are different in case of employees from different grades.

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 Company Profile

In high level (that is in higher grades) the planning attribute is given the maximum

weightage while in lower level or lower grades the operational excellence is given

more weightage.

a. Qualitative Assessment: In the first section, the basic objective was to analyse

the performance of the employee. In the second section, the objective is to assess

the general personality of an individual through his behavioural aspects. Based on

this assessment, the weak areas or better known as areas requiring improvements

are judged. The main objective is to categories individuals into three categories:

Category A: Those individuals having high potential for improvement.

Category B: Those individuals having medium potential for improvement

Category C: Those individuals having low potential for improvement.

1. Performance Review Board:

The PRB rates employees by giving them grades and not marks for their

performances. The actual reason behind calling PRB is to eliminate any kind of

leniency effect.

Thus, all the above five characteristics of the performance appraisal system helps in

eliminating any kind of anomaly and keeping the system fair and just.

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PERFORMANCE REVIEW BOARD OF THE HAL

Introduction

Performance Review Board, commonly known as PRB is called for the final

evaluation of the scores of the employees. Not only are the scores decided in the PRB

meeting but also the following points:

a) A proper justification for the scores given by the reviewing authority.

b) A proper justification for the scores given by the PRB.

c) The grades to be allotted to the employees.

Significance of Performance Review Board (PRB) Scores

In case of PRB scores, there are certain rules that have to be necessarily followed

without failure. The rules are as follows:

i. Less than 5% of the employees in the division should fall in the range of score of

85% to 89%.

ii. Less than 5% of the employees in the division should fall in the range of score of

80% to 84%.

iii. At least 20% of the employees should have a score of below 50%.

iv. Not more than 5% employees of the division should fall in score range of more

than 90%.

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 Company Profile

1. Significance of PRB Scores in case of Promotions: In HAL, the employees can

be promoted in either of the two ways:

a) Departmental Promotions

b) Internal Management Scheme (IMS)

It is important to know that PRB scores are the final scores base on which the

evaluation of an employee’s performance is done. The General Manager does not

have any say in this matter and in this case, acts as a titular head. In fact, whenever

General Manager has to take any decision, it is taken after consultation with the

COM.

2. Promotions under Internal Management Scheme: For promotion under IMS, an

employee should have scored at least 85% in that year in which it has been decided to

promote him/her.

Under the Management Review Categorisation, the employees falling under B and

C category are declared as ineligible for the IMS. Only category A is eligible for the

IMS.

Once an employee clears the standard for the eligibility in IMS, he/she has to appear

for a written entrance test. The written test takes place in June. In this written test,

he/she has to score a minimum of 75%. In case, the employee doesn’t score 75%

marks, he/she will not be eligible to appear in the interview.

Once the interview is over, the Average Performance Index of employees is formed.

This Average Performance Index which is formed is based on the preceding three

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 Company Profile

year score of the employee, his written test and his interview. Weightage given to

these three attributes is as mentioned below in the table:

Preceding three year score Written test Interview

50% 25% 25%

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COMPANY PROFILE

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COMPANY PROFILE

HINDUSTAN AERONAUTICS LIMITED (HAL)

Came into existence on 1st October 1964. The Company was formed by the

merger of Hindustan Aircraft Limited with Aeronautics India Limited and Aircraft

Manufacturing Depot, Kanpur.

The Company traces its roots to the pioneering efforts of an industrialist with

extraordinary vision, the late Seth Walchand Hirachand, who set up Hindustan

Aircraft Limited at Bangalore in association with the erstwhile princely State of

Mysore in December 1940. The Government of India became a shareholder in March

1941 and took over the Management in 1942.

Today, HAL has 19 Production Units and 9 Research and Design Centers in 7

locations in India. The Company has an impressive product track record – 12 types of

aircraft manufactured with in-house R & D and 14 types produced under license.

HAL has manufactured over 3550 aircraft , 3600 engines and overhauled over 8150

aircraft and 27300 engines.

HAL has been successful in numerous R & D programs developed for both

Defense and Civil Aviation sectors. HAL has made substantial progress in its current

projects.

Dhruv, which is Advanced Light Helicopter (ALH)

Tejas - Light CoBBAt Aircraft (LCA)

Intermediate Jet Trainer (IJT)

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Various military and civil upgrades. Dhruv was delivered to the Indian Army,

Navy, Air Force and the Coast Guard in March 2002, in the very first year of its

production. HAL has played a significant role for India's space programs by

participating in the manufacture of structures for Satellite Launch Vehicles like

 PSLV (Polar Satellite Launch Vehicle)

 GSLV (Geo-synchronous Satellite Launch Vehicle)

 IRS (Indian Remote Satellite)

 INSAT (Indian National Satellite)

HAL has formed the following Joint Ventures (JVs) :

1) BAE HAL Software Limited

2) Indo-Russian Aviation Limited (IRAL)

3) Snecma HAL Aerospace Pvt Ltd

4) SAMTEL HAL Display System Limited

5) HALBIT Avionics Pvt Ltd

6) HAL-Edgewood Technologies Pvt Ltd

7) INFOTECH HAL Ltd

Apart from these seven, other major diversification projects are Industrial

Marine Gas Turbine and Airport Services. Several Co-production and Joint Ventures

with international participation are under consideration.

HAL's supplies / services are mainly to Indian Defence Services, Coast Guards

and Border Security Forces. Transport Aircraft and Helicopters have also been

supplied to Airlines as well as State Governments of India. The Company has also

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achieved a foothold in export in more than 30 countries, having demonstrated its

quality and price competitiveness.

HAL has won several International & National Awards for achievements in

R&D, Technology, Managerial Performance, Exports, Energy Conservation, Quality

and Fulfillment of Social Responsibilities.

HAL was awarded the “INTERNATIONAL GOLD MEDAL AWARD” for

Corporate Achievement in Quality and Efficiency at the International Summit (Global

Rating Leaders 2003), London, UK by M/s Global Rating, UK in conjunction with the

International Information and Marketing Centre (IIMC).

HAL was presented the International - “ARCH OF EUROPE” Award in Gold

Category in recognition for its commitment to Quality, Leadership, Technology and

Innovation. At the National level, HAL won the "GOLD TROPHY" for excellence in

Public Sector Management, instituted by the (Standing Conference of Public

Enterprises cope). The Company scaled new heights in the financial year 2006-07

with a turnover of Rs.7, 783.61 Cores.

Strategy of HAL

Emanating from the Company's Mission Statement, the strategic Human

Resource Development (HRD) goal of HAL is to create an atmosphere of

technological and managerial excellence to become a globally competitive Aerospace

Industry. With the changing environment, rapid technological changes characterized

by a paradigm shift from licensed production to R&D based production duly balanced

with co-development / co-production, technological up gradation etc., greater

customer demand, focused diversification to civilian and export markets, the overall

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objective of the Human Resource Development plan is to build a vibrant and learning

organization, so as to meet the challenges of quality and excellence, recruitment and

retention of competent human resources and develop high commitment and a sense of

belongings to the Company. Accordingly, the Company's HR Vision, Mission,

Objectives, Strategies and Policies.

Strategy

1) To be in total alignment with Corporate Strategy.

2) Maintain Human Resource at optimum level to meet the objectives and goals

of the Company.

3) Be competent in Mapping, Analysis and Up gradation of Knowledge and

Skills including Training, Re-training, Multi-skilling etc.

4) Cultivate Leadership with Shared Vision at various levels in the Organization.

5) Focus on Development of Core Competence in High-Tech areas.

6) Build Cross-functional Teams. Create awareness of Mission, Values and

Organizational Goals throughout the Company.

7) Introduce / Implement personnel policies based on performance that would

ensure growth, Rewards, Recognition, Motivation.

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Focus of Human Resource Policy

1) Competence Building

2) Commitment

3) Motivation

4) Employee Relations

In the backdrop of the above, the focus of Human Resource Development

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INDUSTRY PROFILE

HAL’s Corporate Mission

To set an instrument of national policy to achieve self reliance in design

development, production of aircraft and aeronautical equipment and thus meet the

country’s need in the future. Also conduct business economically and efficiently. So

that it can supple products at minimum cost.

HAL’s Core Values

1) Customer satisfaction

2) Commitment to total quality

3) Cost a time consciousness

4) Innovation and Creativity

5) Trust & team spirit

6) Respect for the individual

7) Integrity

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Present Set Up of HAL

HAL has 3 production complexes (Bangalore, MIG, accessories ) and Design

complex each headed by a Managing Director (MD) reporting to chairman is assisted

by Director finance, Director corporate planning & Administration in the corporate

office.

Organization

HAL has eleven production division they are spread over seven locations of

divisions/units of HAL.

HRD and training in HAL (Lucknow division)

HRD in company assumes greater importance . The company employs a large

no. of employees who possess a wide variety of skills. The manufacture of aircraft has

under gone revolutionary changes both conceptually & technologically. Therefore,

Company has to face the challenge of updating the skills of its manpower and

Enables its employees to cope up with these changes.

 Institutions responsible for training activities

 Hal staff college at Bangalore

 Technical training institutes in the division

 Governing council

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HAL PRODUCT PROFILE

Fig. No. 1

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Su 30 MKI

Twin-seater, Multi-role, Long range Fighter / Bomber / Air Superiority

Aircraft

MiG-27 M

Single-seater Tactical Fighter / Bomber with variable sweep wings.

Ejection Seat

The Ejection Seat is installed to provide safe escape to the Pilot from the

Aircraft while catapuling is effected with the help of a combined Ejection Gun. The

Division has the facilities and expertise in the manufacture and overhaul of ejection

seats for both MiG-27M and MiG-21 variants.

Jaguar International

HAL commenced production of Jaguar International - deep penetration strike

and battlefield tactical Support Aircraft in 1979 under license from British Aerospace,

including the engine, accessories and avionics.Jaguar aircraft is designed with 7 hard

points ( 4 under wing, 2 over wing and 1 under fuselage) capable of.

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Dhruv (Advanced Light Helicopter)

With a proven track record and established technology for manufacture of

helicopters and its components, the Helicopter Division commenced series production

of Dhruv (Advanced Light Helicopter) in 2000 - 2001. The ALH is a multi-role,

multi-mission helicopter in 5.5 ton class, fully designed and developed by HAL. Built

to FAR 29 specifications, Dhruv is designed to meet the requirement of both military

and civil operators.

Major Features

a) Designed to perform both utility and attack roles.

b) Twin engine configuration which allows continued flight virtually throughout

the flight envelope.

c) Incorporates a number of advanced technologies – Integrated Dynamic

System (IDS) , Anti-resonance Vibration Isolation System (ARIS) , Full

Authority Digital Electronic Control (FADEC) , Hingeless Main Rotor,

Bearingless Tail Rotor and Automatic Flight Control System

d) 7 Dhruv Helicopters were delivered to Indian Defence Forces in 2000-2001

Exports :

e) Airbus A320 Forward Passenger Doors

f) Boeing 757 Over Wing Exit Doors

g) Boeing 777 Uplock Box Assembly

h) Boeing 767 Bulk Cargo Doors

i) Boeing 737 Freighter Conversion Kits

j) BAE Systems – Tornado Pylons

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k) Fokker Aerostructures – F50 Horizontal Stablizers

l) Boeing -3D-Modelling / Digitisation of Drawings

HAL SERVICES

 Accessories Division, Lucknow

 Foundry & Forge Division, Bangalore

 Engine Division, Koraput

 Helicopter Division, Bangalore

 Overhaul Division, Bangalore

 Transport Aircraft Division, Kanpur

 Industrial & Marine Gas Turbine Division, Bangalore

 Engine Division, Bangalore

 Avionics Division, Korwa

 Avionics Division, Hyderabad

 Aircraft Division, Bangalore

 Aircraft Division, Nasik

HAL R & D CENTRES

 Aircraft

 Rotary Wing

 Aircraft Upgrade

 Transport Aircraft

 Engine & Test Bed

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 Strategic Electronics

 Aerospace Systems & Equipment

 Central Material & Processes Laboratory & NDT Centre

In the year 1951, when HT-2 the first indigenously designed primary trainer

made its first flight, it heralded the era of Research & Design at HAL This aircraft

served as the back bone of IAF's training fleet for more than three decades.

Subsequently, HAL's R&D capabilities have grown from strength to strength and

have been harnessed to achieve greater heights of self reliance. The Advanced Light

Helicopter - ALH (DHRUV) is the latest new generation helicopter designed and

developed by HAL. It is under production since 2002. The test flights on Technology

Demonstrators (TD-I and II) and Prototype Vehicles (PV-1 and 2) of Light CoBBAt

Aircraft - LCA (Tejas) are progressing satisfactorily. The Intermediate Jet Trainer

(IJT) is undergoing test flights.

In addition, HAL has successfully completed many systems updates and

integration tasks. HAL has 9 Research & Design Centres engaged in the design and

development of coBBAt aircraft, helicopters, aeroengines, gas turbines, engine test

beds, aircraft communication and navigation systems and mechanical system

accessories.

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The indigenously upgraded MiG-27M aircraft has received Initial Operation

Clearance (IOC) and the first batch of aircraft has been delivered. First flight test on

Jaguar Nav WASS upgraded aircraft with indigenously developed mission computer

with weapon delivery capabilities has been carried out and retromod of fleet has been

taken up.

Equipped with the latest facilities, the company is backed by high profile,

highly skilled manpower with an impressive track record of more than five decades of

rich experience in all disciplines of aeronautics.

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HAL DIVISIONS

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Fig. No. 2

INTRODUCTION

Human Resource (or personnel) management, in the sense of getting things

done through people, is an essential part of every manager’s responsibility, but many

organizations find it advantageous to establish a specialist division to provide an

expert service dedicated to ensuring that the human resource function is performed

efficiently.

Performance Appraisal is the process of assessing the performance and

progress of an employee or a group of employees on a given job and

his / their potential for future development. It consists of all formal procedures used in

the working organizations to evaluate personalities, contributions and

potentials of employees.

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RATIONALE OF THE STUDY

Performance Appraisal is the important aspect in the

organization to evaluate the Employees Performance. It helps in understanding the

employees work culture, involvement, and satisfaction. It helps the

organization in deciding employee’s promotion, transfer, incentives,

pay increase. It is an underlying motivation for all employees to work harder and be

more efficient in order to climb the ladder of success in turn adding growth to the

working and life of the organization. To study this area is to study and have a deeper

understanding of how employees perceive the performance appraisal method and

processes of the organization that they are part of.

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INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

Human Resource (or personnel) management, in the sense of

getting things done through people, is an essential part of every manager’s

responsibility, but many organizations find it advantageous to establish

a specialist division to provide an expert service dedicated to ensuring that the human

resource function is performed efficiently.

“People are our most valuable asset” is a cliché, which no member of any

senior management team would disagree with. Yet, the reality for

many organizations are that their people remain undervalued, under

trained and underutilized.

The market place for talented, skilled people is competitive and expensive.

Taking on new staff can be disruptive to existing employees. Also, it

takes time to develop ‘cultural awareness’, product / process / organization knowledge

and experience for new staff members.

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FUNCTIONS OF HUMAN RESOURCE MANAGEMENT

Following are the various functions of Human Resource

Management that are essential for the effective functioning of the organization:

1. Recruitment

2. Selection

3. Induction

4. Performance Appraisal

5. Training & Development

RECRUITMENT

The process of recruitment begins after manpower requirements are determined in

terms of quality through job analysis and quantity through forecasting and planning.

SELECTION

The selection is the process of ascertaining whether or not candidates possess the

requisite qualifications, training and experience required.

INDUCTION

Induction is the technique by which a new employee is rehabilitated into the

changed surroundings and introduced to the practices, policies and purposes of the

organization.

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WHAT IS “PERFORMANCE APPRAISAL”?

Performance Appraisal is defined as the process of assessing

the performance and progress of an employee or a group of

employees on a given job and his / their potential for

future development. It consists of all formal procedures used in working

organizations and potential of employees. According to

Flippo, “Performance Appraisal is the systematic, periodic and an important rating of

an employee’s excellence in matters pertaining to his present job and his potential for

a better job.”

Characteristics

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.

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Process

The process of performance appraisal:

1. Establishing performance standards

2. Communicating the Standards

3. Measuring Performance

4. Comparing the actual with the standards

5. Discussing the appraisal

6. 6.Taking Corrective Action

Limitations

1. Errors in Rating

2. Lack of reliability

3. Negative approach

4. Multiple objectives

5. Lack of knowledge

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METHODS OF PERFORMANCE APPRAISAL

The foregoing list of major program pitfalls represents a formidable challenge,

even considering the available battery of appraisal techniques. But attempting to avoid

these pitfalls by doing away with appraisals themselves is like trying to solve the

problems of life by committing suicide. The more logical task is to identify those

appraisal practices that are (a) most likely to achieve a particular objective and (b)

least vulnerable to the obstacles already discussed.

Before relating the specific techniques to the goals of

performance appraisal stated at the outset of the article, I shall briefly review each,

taking them more or less in an order of increasing complexity. The best-known

techniques will be treated most briefly.

Essay Appraisal

In its simplest form, this technique asks the rater to write a paragraph or more

covering an individual's strengths, weaknesses, potential, and so on. In most selection

situations, particularly those involving professional, sales, or managerial positions,

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essay appraisals from former employers, teachers, or associates carry significant

weight.

Graphic Rating Scale

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.

Field Review

The field review is one of several techniques for doing this. A member of the

personnel or central administrative staff meets with small groups of raters from each

supervisory unit and goes over each employee's rating with them to (a) identify areas

of inter-rater disagreement, (b) help the group arrive at a consensus, and (c) determine

that each rater conceives the standards similarly.

Forced-Choice Rating

Like the field review, this technique was developed to reduce bias and

establish objective standards of comparison between individuals, but it does not

involve the intervention of a third party.

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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.

Ranking Methods

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 best approach appears to be a ranking technique involving pooled

judgment.

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 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

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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.

Assessment centers

So far, we have been talking about assessing past performance. What about the

assessment of future performance or potential? In any placement decision and even

more so in promotion decisions, some prediction of future performance is necessary.

How can this kind of prediction be made most validly and most fairly?

360 Degree Feedback

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.

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Most 360 Degree Feedback system contains several common features.

Appropriate parties – peers, supervisors, subordinates and customers, for instance –

complete survey, 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.

Another technique that is useful for coaching purposes is, of course, MBO.

Like the critical incident method, it focuses on actual behavior and actual

results, which can be discussed objectively and constructively, with little or no need

for a supervisor to "play God."

ADVANTAGES

Instead of assuming traits, the MBO method concentrates on actual outcomes.

If the employee meets or exceeds the set objectives, then he or she has demonstrated

an acceptable level of job performance. Employees are judged according to real

outcomes, and not on their potential for success, or on someone's subjective opinion

of their abilities.

The guiding principle of the MBO approach is that direct results can be

observed easily. The MBO method recognizes the fact that it is difficult to neatly

dissect all the complex and varied elements that go to make up employee

performance.

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MBO advocates claim that the performance of employees cannot be broken up

into so many constituent parts, but to put all the parts together and the performance

may be directly observed and measured.

DISADVANTAGES

This approach can lead to unrealistic expectations about what can and cannot

be reasonably accomplished. Supervisors and subordinates must have very good

"Reality Checking" skills to use MBO appraisal methods. They will need these

skills during the initial stage of objective setting, and for the purposes of self-auditing

and self-monitoring.

Variable objectives may cause employee confusion. It is also possible that

fluid objectives may be distorted to disguise or justify failures in performance.

BENEFITS OF PERFORMANCE APPRAISALS

 Measures an employee’s performance.

 Helps in clarifying, defining, redefining priorities and objectives.

 Motivates the employee through achievement and feedback.

 Facilitates assessment and agreement of training needs.

 Helps in identification of personal strengths and weaknesses.

 Plays an important role in Personal career and succession planning.

 Clarifies team roles and facilitates team building.

 Plays major role in organizational training needs assessment and analysis.

 Improves understanding and relationship between the employee and the

reporting manager and also helps in resolving confusions and

misunderstandings.

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 Plays an important tool for communicating the organization’s philosophies,

values, aims, strategies, priorities, etc among its employees.

 Helps in counseling and feedback.

RATING ERRORS IN PERFORMANCE APPRAISALS

Performance Appraisals are subject to a wide variety of inaccuracies and

biases referred to as 'rating errors'. These errors can seriously affect assessment

results. Some of the most common rating errors are: -

Leniency Or Severity: - Leniency or severity on the part of the rater makes the

assessment subjective. Subjective assessment defeats the very purpose of performance

appraisal. Ratings are lenient for the following reasons:

a) The rater may feel that anyone under his or her jurisdiction who is rated

unfavorably will reflect poorly on his or her own worthiness.

b) He/She may feel that a derogatory rating will be revealed to the rate to detriment

the relations between the rater and the ratee.

c) He/She may rate leniently in order to win promotions for the subordinates and

therefore, indirectly increase his/her hold over him.

Central Tendency: - This occurs when employees are incorrectly rated near the

average or middle of the scale. The attitude of the rater is to play safe. This safe

playing attitude stems from certain doubts and anxieties, which the raters have been

assessing the rates.

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Halo Error: - A halo error takes place when one aspect of an individual's

performance influences the evaluation of the entire performance of the individual. The

halo error occurs when an employee who works late constantly might be rated high on

productivity and quality of output as well ax on motivation. Similarly, an attractive or

popular personality might be given a high overall rating. Rating employees separately

on each of the performance measures and encouraging raters to guard against the halo

effect are the two ways to reduce the halo effect.

Rater Effect: -This includes favoritism, stereotyping, and hostility. Extensively high

or low score are given only to certain individuals or groups based on the rater's

attitude towards them and not on actual outcomes or behaviors; sex, age, race and

friendship biases are examples of this type of error.

Primacy And Regency Effects: - The rater's rating is heavily influenced either by

behavior exhibited by the ratee during his early stage of the review period (primacy)

or by the outcomes, or behavior exhibited by the ratee near the end of the review

period (regency). For example, if a salesperson captures an important contract/sale

just before the completion of the appraisal, the timing of the incident may inflate his

or her standing, even though the overall performance of the sales person may not have

been encouraging. One way of guarding against such an error is to ask the rater to

consider the composite performance of the rate and not to be influenced by one

incident or an achievement.

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Performance Dimension Order: - Two or more dimensions on a performance

instrument follow each other and both describe or rotate to a similar quality. The rater

rates the first dimensions accurately and then rates the second dimension to the first

because of the proximity. If the dimensions had been arranged in a significantly

different order, the ratings might have been different.

Spillover Effect: - This refers lo allowing past performance appraisal rating lo

unjustifiably influence current ratings. Past ratings, good or bad, result in similar

rating for current period although the demonstrated behavior docs not deserve the

rating, good or bad.

ROLES IN THE PERFORMANCE APPRAISAL PROCESS

a) Reporting Manager

 Provide feedback to the reviewer / HOD on the employees’ behavioral traits

indicated in the PMS Policy Manual

 Ensures that employee is aware of the normalization / performance appraisal

process

 Address employee concerns / queries on performance rating, in consultation with

the reviewer

b) Reviewer (Reporting Manager’s reporting Manager)

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 Discuss with the reporting managers on the behavioral traits of all the employees

for whom he / she is the reviewer

 Where required, independently assess employees for the said behavioral traits;

such assessments might require collecting data directly from other relevant

employees

c) HOD (In some cases, a reviewer may not be a HOD)

 Presents the proposed Performance Rating for every employee of his / her

function to the Normalization committee.

 HOD also plays the role of a normalization committee member.

d) HR Head

 Secretary to the normalization committee

 Assists HOD’s / Reporting Managers in communicating the performance rating

of all the employees

e) Normalization Committee

 Decides on the final bell curve for each function in the respective Business Unit /

Circle

 Reviews the performance ratings proposed by the HOD’s, specifically on the

upward / downward shift in ratings, to ensure an unbiased relative ranking of

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employees on overall performance, and thus finalize the performance rating of

each employee

KEY CONCEPTS IN PMS

In order to understand the Performance Management System at HAL, some

concepts need to be explained which play a very important role in using the PMS

successfully. They are:

KRA’S (Key Result Areas): The performance of an employee is largely dependent

on the KRA score achieved by the employee during that particular year. Thus, it is

necessary to answer a few basic questions i.e.

 What are the guidelines for setting the KRA’s for an employee?

 How does an employee write down his KRA’s for a particular financial year?

 KRA’s: The Four Perspectives.

 How is the KRA score calculated for an employee on the basis of the targets sets

and targets achieved?

 Behavioral Traits: Some of the qualitative aspects of an employees’ performance

combined with the general behavioral traits displayed by the employee during a

year constitutes his behavior traits. An employee is assigned the rating on the

basis of the intensity of the behavior displayed by him. They play a very important

role in the deciding the final performance rating for an employee as is even

capable of shifting the rating one level upwards/downwards.

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 Bharti 2010 Leadership Competency Framework: This competency

framework is a simple and structured way to describe the elements of behaviors

required to perform a role effectively. This framework also tries to assess the

performance of an employee objectively.

 The Performance Rating Process: The rating process tries to explain the four

different types of rating that an employee can achieve i.e. EC, SC, C and PC. It

also explains the criteria, which is considered for awarding any of these ratings to

the employee.

 Promotion and Rating Distribution Guidelines: The promotion and normal

distribution guidelines provide the framework within which the performance

appraisal process has to work. It is very important that the HR department pays

due attention to these guidelines while preparing the bell curves for various

functions and the consolidated bell curve for all the functions. These guidelines

also help in deciding upon the promotion cases in a year.

LITERATURE REVIEW AND CONCEPT FORMULATION

Human Resource (or personnel) management, in the sense of getting things done

through people, is an essential part of every manager’s responsibility, but many

organizations find it advantageous to establish a specialist division to provide an

expert service dedicated to ensuring that the human resource function is

performed efficiently.

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“People are our most valuable asset” is a cliché, which no member of any

senior management team would disagree with. Yet, the reality for many organizations

are that their people remain under valued, under trained and under utilized.

Following are the various functions of Human Resource Management that are

essential for the effective functioning of the organization:

1. Recruitment

2. Selection

3. Induction

4. Performance Appraisal

5. Training & Development

Performance appraisal is necessary to measure the performance of the

employees and the organization to check the progress towards the desired goals and

aims.

The latest mantra being followed by organizations across the world being –

"get paid according to what you contribute" – the focus of the organizations is turning

to performance management and specifically to individual performance. Performance

appraisal helps to rate the performance of the employees and evaluate their

contribution towards the organizational goals. If the process of performance

appraisals is formal and properly structured, it helps the employees to clearly

understand their roles and responsibilities and give direction to the individual’s

performance. It helps to align the individual performances with the organizational

goals and also review their performance.

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Performance appraisal takes into account the past performance of the

employees and focuses on the improvement of the future performance of the

employees.

PART OF SELF APPRAISAL

Performance Review - Preparation Performance appraisal feedback

Performance Review – The Meeting Performance Consulting: Moving

Beyond Training
How to Complete a Performance

Appraisal Form Writing performance appraisal

Analysis for Improving Performance Performance Appraisal Training

Active performance appraisal How to Measure Employee

conversation Performance

SELF APPRAISAL

Self appraisal is an important part of the Performance appraisal process where

the employee himself gives the feedback or his views and points regarding his

performance. Usually this is done with the help of a self appraisal form where the

employee rates himself on various parameters, tells about his training needs, if any,

talks about his accomplishments, strengths,

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PERFORMANCE APPRAISAL FEEDBACK

Performance appraisal process is incomplete without the feedback given to the

employee about his appraisal and his performance. But the way of giving as well as

receiving the feedback differs from person to person and their way of handling and

their outlook towards the issue.

According to a popular saying:

"A SUCCESSFUL MAN IS ONE WHO CAN LAY A FIRM FOUNDATION

WITH THE BRICKS OTHERS HAVE THROWN AT HIM."

Therefore, On the part of the person receiving the feedback, the following points

are important to be taken care of:

 The employee should have a positive attitude towards the feedback process

 He should listen to the suggestions of the appraiser calmly and try to incorporate

them in his plans.

 He should not hesitate to ask for the help of his superiors.

 Should have a co-operative attitude during the feedback meeting.

 Don’t judge the appraiser as a person.

 Should take the feedback objectively.

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 Should not judge the appraiser as a person on the basis of the feedback.

On the part of the appraiser or the manager / person giving the feedback, the

following points are to be taken care of:

 The appraiser should make the receiver feel comfortable during the feedback

meeting.

 The appraiser should make it a two – way conversation i.e. let the employee

speak.

 Listen to the employee and note his points, suggestions, problems etc.

 The appraiser should not adopt a confrontational approach towards the meeting.

The goal is not to criticize the employee.

 Provide a constructive feedback to the employee i.e. in a way which will motivate

him to perform better.

 Have a positive attitude towards the process

 Try to understand the reasons of his failure.

Make the appraisal feedback meeting useful and productive for the organization and

the employee.

Performance Consulting: Moving Beyond Training

Organizations are growing in size, becoming complex and the importance of

trained and developed workforce is also increasing. One of the major objectives and

benefits of the performance appraisal is that it helps in identifying the training needs

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of the employee and reducing the gap between the actual and the desired performance

of the employees. But Performance appraisal also facilitates the other decisions like:

 Compensation and rewards

 Performance Feedback

 Manpower planning

 Performance improvement

 Promotions and transfers

 HR Documentation

To meet the increasing competition and the challenging organizational goal,

the human resource departments of the organizations throughout the world are

moving away from the traditional and the theoretical training methods. The

organizations are focusing on "Performance Consulting" i.e. the practical aspects of

the employee training and what the employees should do to achieve the organizational

goals.

Therefore, to improve the effectiveness and the performance, the conventional

role of the trainers have changed to "performance or HR consultants".

Performance consulting refers to the actual transfer of the new skills, competencies

acquired through the training to the job, focusing on the employees’ performance

needs i.e. the needs to improve the performance.

Your performance appraisals should be intrinsically linked to your regular one

on ones, you should give feedback in your one on ones on the same criteria that you

are using in your performance appraisals.

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The diagram below shows both your performance appraisals and your one on

ones to highlight that this is one process, rather than two processes.

FUNCTIONS OF MANUFACTURING UNITS

Bangalore Complex

Aircraft Division

HAL has designed and development various types of aircraft- VIZ, HT-2(a

piston engined elementary trainer), HJT_16 (kIRAN) (a basic get trainer), HF-24

(MARUT) aircraft, AJEET, HPT-32 PUSHPAK, kRISHAK and BASANT

Agriculture aircraft, besides various other aircraft, helicopters under license

Agreement. Jaguar international aircraft and kIRAN MK-2 are currently under

manufacture at HAL.

Engine Division

Manufacturing of jet engines to power its aircraft.

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Helicopter Division

Helicopter Division manufactures Cheetah and Chetak helicopters for use by IAF

and Navy.

Overhaul Division

The overhaul division carries out repair/overhaul of a variety of aircraft ranging from

small piston engine aircraft to modern to jet fighters and bombers.

Forge & Foundry Division

The Foundry & Forge Division supplies a large range of sophisticated radio graphical

quality castings both ferrous and non-ferous to the different Divisions of HAL.

Accessories Complex

Hyderabad Division

HAL Hyderabad division has designed and developed advanced radio and

communication equipment, air-borne and ground radar equipments, avionics system

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for various types of aircraft produced at HAL as well as for Army, Navy and P & T

based, on indigenous design.

Lucknow Division

The division was set up with the objective of supplying six types of systems

Equipment of KIRAN and MARUT aircraft. The Division has diversified its product

range subsequently and presently manufactures over 500 products for all types of

aircraft manufactured at HAL. The Division has also built up design and development

capability and indigenously developed electrical, hydraulic and other items which are

manufactured for use in aircraft as well as for fighting vehicles.

Korwa Division

A new Division has been set up at Korwa for manufacture of advanced Navigation

and Weapon Aiming System, Display Systems, Flight Data Recorder etc.

Kanpur Division

The division now manufactures HPT-32 trainer aircraft and the latest version of

gliders called ARDHRA. The Government of India has approved manufacture of

Dernier ( light transport aircraft) aircraft under license agreement with M/s Dernier

GMBH, West Germany.

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Nasik Division

The Nasik division currently manufactures the MIG-27 and MIG-21 BIS aircraft,

having successfully completed the manufactures of MIG-21 FL and M version earlier.

It also overhauls all variants of MIG-21 aircraft.

Koraput Division

Manufactures of R 11 F2 and F2 –S engines fitted to MIG-21 FL and MIG-21 M

aircraft & R-25 engines for MIG BIS aircraft is done here.

Designing & Development Complex

HAL has designed and developed a variety of aircraft, which includes HT-2,

HF-24, HJT-16(Mk. I & II), Ajeet, HPT-32 and HTT-34.

Aircraft Research & Design Centre

This division is situated at Bangalore. The centre is currently engaged in the

design and development of the IJT as a replacement of the Kiran and Light coBBAt

aircraft (LCA) programme.

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Rotary Wing Research & Design Centre

The center is responsible for design and development of helicopters. The

bureau also undertakes programme covering modification on Chetah, Chetak,

FRB blades for winds powered turbines. The prototype testing and flight

certification of the multi role multi mission helicopter the Advanced Light

Helicopter is in progress.

Hal Exports

 Helicopters

 ALH

 Engines

 Avionics

 Aero structures

 Soft wares

 Dornier – 228

 Spares & Services

International Customers

 Airbus Industrie, France

 APPH Bolton, UK

 BAE Systems, UK

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 Chelton, UK

 Coast Guard, Mauritius

 Corporate Air, Philippines

 Cosmic Air, Nepal

 Dassault Aviation, France

 Dowty Aerospace Hydraulics, UK

 EADS, France

 ELTA, Israel

 Gorkha Airlines, Nepal

 Hampson, UK

 Honeywell International, USA

 Island Aviation Services, Maldives

 Israel Aircraft Industries, Israel

 Messier Dowty Ltd., UK

 Mistubishi Heavy Industries, Japan

 MOOG, USA

 Namibian Air Force, Namibia

 Peruvian Air Force , Peru

 Rolls Royce Plc, UK

 Royal Air Force, Oman

 Royal Malaysian Air Force, Malaysia

 Royal Nepal Army, Nepal

 Royal Thai Air Force, Thailand

 Smiths Industries, UK

 Snecma, France

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 Strongfield Technologies, UK

 The Boeing Aircraft Company, USA

 Transworld Aviation, UAE

 Vietnam Air Force, Vietnam

Domestic Customers

 Air India

 Air Sahara

 Airports Authority of India

 Bharat Electronics

 Border Security Force

 Coal India

 Defence Research & Development Organisation

 Govt. of Andhra Pradesh

 Govt. of Jammu & Kashmir

 Govt. of Karnataka

 Govt. of Maharashtra

 Govt. of Rajasthan

 Govt. of Uttar Pradesh

 Govt. of West Bengal

 Indian Airforce

 Indian Airlines

 Indian Army

 Indian Coast Guard

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 Indian Navy

 Indian Space Research Organisation

 Jet Airways

 Kudremukh Iron ore Company ltd.

 NALCO

 Oil & Natural Gas Corporation Ltd.

 Ordnance Factories

 Reliance Industries

 United Breweries

Hal Today

H.A.L. is vertically integrated aerospace product manufacturing Public

Sector Enterprises under the Ministry of Defense, Government of India. Today

, HAL has 16 Production /Overhaul /Service Divisions and 9 Research and Design

Centers at 7 location in India. The Company has an impressive product track record

- 12 types of Aircrafts are manufactured with in-house R &D and 14 types

produced under license . HAL has manufactured 3550 aircrafts ( which includes

11 types of designed indigenously ) , 3600 engines and overhauled over 8150

aircrafts and 27300 engines . HAL is now ranked 45th in the list of world’s top

100 defense companies and also added in NAVRATAN group in 2007 .

Core Business

Design and development of fixed and rotator wing aircraft , avionics and

accessories , manufacturing , maintenance, repair and overhaul of fighter , transport

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and trainer aircraft , helicopters , aero-engines , accessories , ground support

equipment , structures for satellites/ launch vehicles and development of

aeronautical software.

Over the last 6 decades , HAL has grown progressively into an integrated

Aerospace Organization with the indigenous design and development of Advance

Light Helicopter (ALH-Dhruv) , Intermediate Jet Trainer (IJT) and Lighter

CoBBAt Aircraft (LCA-TEJAS).

The ongoing major projects and programs include : ALH ( both in military

and civil roles), IJT , LCA ,Pilot less Target Aircraft (PTA) , SU- 30 MKI and

Hawk- Advanced Jet Trainer .

Aligning with the emerging future requirements , HAL has initiated the

indigenous development of Light CoBBAt Helicopters (LCH) as well as naval and

trainer version of LCA.

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Joint Ventures

 Bae-H.A.L. Software Limited for development of aeronautical software.

 Indo-Russian Aviation Limited (IRAL) for spares and services of Russian

origin aircrafts /engines/accessories .

 Snecma –H.A.L., Aerospace Private Limited for production of aero-engine

components .

 SAMTEL –H.A.L. Display System Pvt. Ltd. for developing and

manufacturing avionics display system .

 JV with Elbit System Limited , Israel for design , development and

marketing of aircrafts simulators and related applications for Indian and

International markets.

 JV with Wedgwood ,LIC ,USA for development and manufacture of high-

technology miniature electronics modules for aerospace applications .

Further, several co-production and joint ventures with International participation are

under consideration , aiming to enhance business and upgrade technology .

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BASIC OBJECTIVES OF HAL

1. To serve as an instrument of the National policy to achieve self-reliance in the

design, development and production of aircraft and aeronautical equipment, to

meet the country’s changing and growing needs with special emphasis on military

requirement.

2. In fulfillment of this objective the company shall regard itself fundamentally

Responsible for design and development, relying, however upon such relevant

facilities as are available in other national institution but always holding itself

basically responsible for the growth and furtherance of the country’s aeronautical

capability.

3. To so conduct its business economically and efficiently that it can contribute its

due share to the national efforts to achieve a self-reliance and self-generating

economy.

4. Towards this end, to develop and maintain an organization which will readily

respond to and adopt the changing matrix of socio techno-economic relationships

and where in a climate of growing professional competence, self-discipline,

mutual understanding, deep commitment and a sense of belonging will be fostered

and each employee will be encouraged to grow in accordance with his potential

for the furtherance of the organizational goals.

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HAL LUCKNOW DIVISION

LUCKNOW division of HAL was established in 1970 with the primary

objectives of manufacturing system & accessories for various aircrafts & engines &

attains self sufficiency in this area. The division started with manufacturing various

system & accessories to meet the requirement of the aircrafts & engines being

produced by HAL at that time ie. MARUT, KIRAN,CHEETAK / CHETAK /

CHETAK helicopters.

This was followed up with subsequent license agreement with the USSR for

manufacturing the same range of accessories OG MIG series of aircraft and their

engines & there after similar arrangement were made for the present aircraft jaguar,

mig-27, mirage & sea harrier.

The division also plans to manufacture similar range of items of latest aircraft ,

inducted by air force ie. SUKHOI. In addition the division manufactured system for

civil aircraft ie. Aero, dernier & an-32.

The division has laid a lot of emphasis on developing indigenous capability for

design & development of various system & accessories, which have been developed

by its design bureau.

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PERSONNEL & ADMINISTRATION DEPARTMENT IN HAL, LUCKNOW

DIVISION

P & A Department of HAL, LUCKNOW division has 9 Sections.

The personnel and administration department has been divided into the following

sections:

1) Recruitment Section

2) Establishment Section

3) HRD Section

4) General Administration

5) Industrial Relations Section

6) Legal Section

7) Rajbhasha Section

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Recruitment Sectio

Recruitment forms the first stage in the process, which continues with

selection and placement. It is the discovering of the potential applicants for the

organizational vacancies. Over the last 4 decades, the company has grown

tremendously, new divisions have established & new lines of manufacture setup and

new technologies have been introduced. All this led to acquire highly skills and

suitable personnel for different jobs. The person comes in the organizations has to

contact with this department firstly, then only he can join the organization.

This department deals with recruitment, promotion, and performance appraisal

reports, salary etc. There may be external & internal sources of recruitment. Internal

means vacancies are filled through transfers and promotions while external sources

means the selection or acquiring of personnel through Advertisement in press,

The process of the recruitment through external sources is too long, firstly the

H.A.L. publish a notice for vacancy in the newspapers. Then after screening 20

nominees would be called for the written test and then an interview will be organized

for 5 selected nominees & after this only one would be selected for that particular

post.

This section deals with fresh recruitment of employees, performance appraisal

reports, promotion, PAR, salaries & wage analogies, maintenance of rosters

regarding reservation of SC/ST/OBC etc, recruitment activities.

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Recruitment is done for executives, supervisors & workers recruitment policy

is such that as far as the executives are concerned their recruitment process is

controlled and is done by corporate office while for supervisors & workers. The

recruitment is done at the unit level itself. MPP is also dealt with this section.

The most important function of this section is to deal with the promotion of

the employees. Its primary objective lies in providing all employees equal

opportunity.

m) TSP for employees up to group.

n) IMS & CPP for employees of grade 1 to 4

o) Promotions from grade v & above are dealt by corporate office at Bangalore.

The premise of PAR which takes into account various factors like performance of

Employees, leave taken by them, disciplinary action initiated against them.

The other functions of this department are:

 Selection and appointment

 Maintenance of roster regarding reservation of Sc/St,OBC, Ex servicemen,

physically handicapped etc.

 Notification of advertisement

 Screening of applications

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 Conducting test and interviews

 Medical examination reports

 Issuance to offer appointments

 Joining on fresh appointment/ on transfer from other divisions

 Fixation of salaries on appointment and promotions

 Grant of annual increment after obtaining details from the accounts Department

 Transfer cases from other divisions

 Prime minister’s “Shram Awards”/ physically handicapped awards, staff

Grievances

 Settlement of wage/ salary anomaly in respect of officers/ employees

 Grant of higher scale/ relaxation of qualification

 Allocation of drivers for V.I.P.’s , ambulances and for routine factory work

 Maintenance of vehicles

 Air-ticket, passport, visa, vip visit, hotel accommodation, shop allotment,

Night duty etc.

 Supervision of electronic punching

 Circulation of corporate office letters/ personal circulars

 VVIP references

Criteria for Recruitment

Prescribed span of service for workmen from group b to scale 10 for promotion under

time scale promotion scheme (TSPS)

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SWOT ANALYSIS

Strengths

8) H.A.L. is headed by an excellent and extra ordinary chairman, who is most

capable of managing the organization by getting the work load from Indian Air

Force, Navy, Army and Coast Guard for its financial growth and management.

9) The technological knowhow are very confidential and have the best – suited for

making and overhauling the Defenses Aircraft that is incomparable with any

technologies.

10) H.A.L. is a very good pay-master to its employees as it is very much financially

healthy due to its existence under Ministry of Defenses.

11) The monitoring of the Finance and the manufacturing and delivery of Aircraft to

the customers timely for the best use of the same.

12) The reputation of HAL being the Defenses organization has its importance and

technically and financially renowned among PSUs (Public Sector undertakings) as

Navratna and carries ISO: 14001 company .Quality in the world/Internal Business

Organization.

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 Company Profile

Weaknesses

1) IAF is fully satisfied with the performance of HAL so far as the following of

licensees Technical know how are concerned, but due to recent Air crashes of

MIG Aircraft and few other Aircrafts there are few problems which are minor.

2) Sometimes the foreign vendors on whom HAL depends for procuring raw

materials for Research are not in a position to deliver the same in time this

causes financial loses to H.A.L. by paying liquidated damages to IAF /

Customers.

3) Sometimes HAL use to make payment to suppliers as advance for

procurement of raw-material because there are some parties who can not

supply without advance payment due to their financial problems.

4) Sometimes H.A.L. does not get the approval from IAF against the items

appeared in FPQ (Fixed Price Quotation) at the rate prevalent in the

International market with then approved suppliers. Escalation percentage in

respect of the items where it is much more than permissible limit can put to

loss to the extent it is more.

5) Machineries required from Foreign vendor take abnormal time leading to-

delay in the normal manufacturing function, hence now H.A.L. wants get

similar type of machineries if approved by the customers.

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 Company Profile

Opportunities

1) H.A.L. is the only manufacturer of the Defenses Aircrafts; hence the job

opportunities as well as profit earning opportunities are more to day and in the

forthcoming years.

2) Promotion opportunities are in-vogue to all the professionals including

technical and non-technical areas Departments.

3) As H.A.L. has monopoly in the manufacturing and overhauling of aircraft, so

it can explore all the advantages related to this field.

4) As H.A.L. has developed its own R & D centers so now it would not have to

depend on Russia for Technical knowhow.

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 Company Profile

Threats

1) HAL has fear to terrorist as it is a defenses organization producing fighter

aircrafts.

2) Though H.A.L. is manufacturing fighter Aircrafts in confidence and getting the

same inspected by the authorized officials of Air force. There is a fear that during

testing there should not be any unwanted happening / rejections of Aircrafts which

may cause the losses.

3) During war, H.A.L. has its fear of attack by enemy – countries as H.A.L. is very

famous for a very good supporting organization with arms / fighter aircraft.

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 Research Methodology

OBJECTIVE OF THE STUDY

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 Research Methodology

OBJECTIVE OF THE RESEARCH

OBJECTIVE

1. To Study of perception of executives towards the present PERFORMANCE

APPRAISAL SYSTEM in HAL.

2. Factors affecting the perception of the executives.

3. Purposes of PERFORMANCE APPRAISAL SYSTEM (PAS) outcomes like:

 Firing

 Promotion/Demotion/Compensation

 Improvement

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 Research Methodology

RESEARCH
METHODOLOGY

78
 Research Methodology

RESEARCH METHODOLOGY

Research Design

Research Design refers to "framework or plan for a study that guides the

collection and analysis of data". A typical research design of a company basically tries

to resolve the following issues:

a. Determining Data Collection Design

b. Determining Data Methods

c. Determining Data Sources

d. Determining Primary Data Collection Methods

e. Developing Questionnaires

f. Determining Sampling Plan

(1) Explorative Research Design:

Explorative studies are undertaken with a view to know more about the

problem. These studies help in a proper definition of the problem, and development of

specific hypothesis is to be tested later by more conclusive research designs. Its basic

purpose is to identify factors underlying a problem and to determine which one of

them need to be further researched by using rigorous conclusive research designs.

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 Research Methodology

(2) Conclusive Research Design:

Conclusive Research Studies are more formal in nature and are conducted

with a view to eliciting more precise information for purpose of making marketing

decisions.

These studies can be either:

a) Descriptive or

b) Experimental

Thus, it was mix of both the tools of Research Design that is, Explorative as well

as Conclusive.

Method of Data Collection

1. Primary Data

Primary data are those which are collected fresh and for the first time and thus

happen to be original in chapters. I have collected my data through Questionnaires

and through direct communication with respondents in one form or another or

through personal interviews. Through observation method I was able to record the

natural behavior of the persons.

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 Research Methodology

2. Secondary Data

Secondary data are those data which are being already collected by someone

else and which have already been passed through the statistical process.

Universe

In this research the universe is Lucknow. The Universe is a complete,

or the theoretically specified aggregation of study elements. It is usually the ideal

population to which research results are to be generalized.

Sample Size

The Sample size is the number of elements in the obtained sample.

Sample size relates to how many people to pick for the study.

Sample Unit

This is that element or set of elements that are considered for selsction in some

stage of sampling(same as the elements, in a simple single-stage sample). In a multi-

stage sample, the sampling unit could be blocks, households, and individuals within

the households.

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 Research Methodology

Statistical tools

In this research report several statistical tools are being used. Some of them are pie

chart, bar graph, average, etc.

Sampling Plan:

Sample Size = 50 Employees

Sample Area = HAL Lucknow Division

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 Data Analysis & Interpretation

DATA ANALYSIS &

INTERPRETATION

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 Data Analysis & Interpretation

DATA ANALYSIS & INTERPRETATION

1 - Employees opinion about the present Appraisal system (in %)

2%

30% 24%

Fully Satisfied

Satisfied

Cant Say

44% Dissatisfied

Figure No. 3

Interpretation

There is a difference in the view of employees regarding the present appraisal system,

only 2% of the employees interviewed are fully satisfied with the present appraisal

system, while 24% are satisfied, 44% employees can’t say and 30% are dissatisfied

from the present appraisal system.

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 Data Analysis & Interpretation

2 - Employees' opinion about the frequency of appraisal (in %)

0%

Once During the Service Period

Continuous

Never

100%

Figure No. 4

Interpretation

From the above chart we may decipher that none of the employees who were

interviewed, prefer to be appraised only once during their service period, neither is it

acceptable to never be appraised at all. All the employees interviewed, that is 100%

responded that the appraisal should be a continuous process.

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 Data Analysis & Interpretation

3 - Employees' opinion about who should be the people appraising them (in %)

12%
6% Superior

48% Peer

Subordinate

30% Self Appraisal

Consultant

4% All of the Above

0%

Figure No. 5

Interpretation

While almost half of the employees (48%) are comfortable in being appraised by their

superiors, only 4% think its fine being appraised by their peers. 30% feel that the

appraisal should be self because they themselves know their contribution to the

organization. 6% feel that the consultants would appraise them best while none think

that subordinates appraising them is a good idea. 12% of the employees interviewed,

feel that all these people collectively should appraise them.

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 Data Analysis & Interpretation

4 - Employees opinion on whether the appraisal system helps in polishing skills

in performance area (in %)

16%

10%
Yes

No

74% Somewhat

Figure No. 6

Interpretation

If the process of appraisal does not lead to the improvement of the skills and

proficiency of the employees, the very purpose of appraisal becomes illogical. In the

survey conducted it was observed that nearly 74% of the respondents agree that

Performance Appraisal does lead to polishing of skills of employees. Nearly 10%

hold the view that it does not serve this purpose while 16% are of the opinion that it

only somewhat does.

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 Data Analysis & Interpretation

5 - Employees' opinion of whether personal bias creeps in during performance

appraisal (in %)

18%

Yes

No

82%

Figure No. 7

Interpretation:

In the process of appraising, both parties are human beings, that is, the one who is

being apprised and the other who is appraising. Thus, there bound to be subjectivity

involved, be it an objective way of appraising. Thus, when asked from among the

sample size of 50 respondents, as huge as 82 % respond ended that personal bias does

creep in while appraising an individual. Hence, it is inevitable to say that personal

likings do not come in the process of appraisal. It is the extent to which the appraiser

manages it so that it does not become very partial and bias.

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 Data Analysis & Interpretation

6 - Employees' opinion about whether the present appraisal system should be

reviewed (in %)

28%

Yes
54%
No

18% Cant Say

Figure No.8

Interpretation

On being given the opportunity, 54% of the employees interviewed said that they

would prefer the appraisal system to be reviewed, while 9% are fine with it, 28%

don’t have any rigid opinion about it.

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 Data Analysis & Interpretation

7 - Employees opinion on whether Performance Appraisal leads to identification

of hidden potential in individuals (in %)

22%

Yes No
78%

Figure No. 9

Interpretation

Its can be clearly deciphered from the above chart, that 78% of the employees

who were interviewed think that performance appraisal leads to identification of

hidden potential in them, while only 22% feel that it does not solve any such purpose.

90
 Conclusion

CONCLUSION

91
 Conclusion

CONCLUSION

After having analyzed the data, it was observed that practically there was no

appraisal in the organization. To be an effective tool, it has to be on the continuous

basis. This is the thing that has been mentioned time and again in the report, as, in the

absence of continuity, it becomes a redundant exercise. Before actually deciding

drafting what should be the kind of appraisal the following things should be taken

care of:

1. The very concept of performance appraisal should be marketed

throughout the organization. Unless this is done, people would not accept it, be

it how important to the organization.

2. To market such a concept, it should not start at bottom, instead it should be

started by the initiative of the top management. This would help in percolating

down the concept to the advantage of all, which includes the top management

as well as those below them. This means that the top management has to take a

welcoming and positive approach towards the change that is intended to be

brought.

Ideally in the present day scenario, appraisal should be done, taking the views of all

the concerned parties who have some bearing on the employee. But, since a change in

the system is required, it cannot be a drastic one. It ought to be gradual and a change

in the mindset of both the employees and the head is required.

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 Recommendation

LIMITATIONS

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 Recommendation

LIMITATIONS

A few limitations and constraints came in way of conducting the

present study, under which the researcher had to work are as follows:

 Although all attempts were made to make this an objective study, biases on the

part of respondents might have resulted in some subjectivity.

 Though, no effort was spared to make the study most accurate and useful, the

“sample Size” selected for the same may not be the true representative of the

Company, resulting in biased results.

 This being the maiden experience of the researcher of conducting study such as

this, the possibility of better results, using deeper statistical techniques in

analyzing and interpreting data may not be ruled out.

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 Recommendation

RECOMMENDATION

95
 Recommendation

RECOMMENDATION

1. It should be noted that the appraisal form for each job position should be

different as each job has different knowledge and skill requirements. There

should not be a common appraisal form for every job position in the

organization.

2. The job and role expected from the employees should be

decided well in advance and that too with the consensus with them.

3. A neutral panel of people should do the appraisal and to avoid subjectivity to a

marked extent, objective methods should be employed having quantifiable data.

4. The time period for conducting the appraisal should be revised, so that the

exercise becomes a continuous phenomenon.

5. Transparency into the system should be ensured through the discussion about

the employee’s performance with the employee concerned and trying to find

out the grey areas so that training can be implemented to improve on that.

96
 Bibliography

BIBLIOGRAPHY

97
 Bibliography

BIBLIOGRAPHY

Books:

Devis, Keith – Human Behaviour at Works: Organizational Behaviour (Tata McGraw

Hill, New Delhi).

Robbins, S. P. – Organizational Behaviour (Pearson Education, New Delhi).

Luthans, Fred – Organizational Behaviour (McGraw Hill) 1998, New Delhi.

Aswathapa – Human Resource Management (Tata McGraw Hill) HR and PM.

Journal

Hal Employee Hand Book

Websites:

 www.hal_india.com

 www.wikipedia.com

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 Appendices

APPENDICES

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 Appendices

QUESTIONNAIRE

Questionnaire

Q 1 - What do you feel about the present appraisal system?

a) Fully Satisfied

b) Satisfied

c) Can’t Say

d) Dissatisfied

Q 2 – How frequently do you think the performance appraisal should be done?

a) Once during the service period

b) Continuous

c) Never

Q 3 – Who, according to you, should undertake the performance appraisal

responsibility?

a) Superior

b) Peer

c) Subordinate

d) Self- appraisal

e) Consultant

f) All of the above

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 Appendices

Q 4 – Do you think that the Performance Appraisal system helps in polishing

skills in the performance area?

a) Yes

b) No

c) Somewhat

Q 5 – Do you think that personal bias creeps in during the process of

performance appraisal?

a) Yes

b) No

Q 6 – Do you think that the present appraisal system needs to be reviewed?

a) Yes

b) No

c) Can’t Say

Q 7 – Do you think that Performance Appraisal leads to the identification of

hidden potential in an individual?

a) Yes

b) No

101