Documente Academic
Documente Profesional
Documente Cultură
On
PERFORMANCE MANAGEMENT
SYSTEM in GAIL
DECLARATION
I hereby declare that the project work entitled “Performance Appraisal “ submitted to the
Gitaratan International Business School, Guru Gobind Singh Indraprastha University, is a
record of an original work done by me under the guidance of Shri M. Baa, Mr. Surender
Kumar, Mr. U.K.De, GAIL (India) Limited, and our respective faculty members,.
Gitaratan International Business School
Savita Sharma
008191039909
ACKNOWLEDGEMENT
“Vital to every operation is co-operation” I really agree to this wonderful quotation put
forth by Mr. Frank Tyger. This project was successful due to the co-operation extended
by people who have truly contributed towards it.
Words aren’t enough to express my gratitude to all those who helped me through out my
training period.
With deep regards and humble respect I would like to thanks Shri M. Baa DGM (HR),
Mr. Surender Kumar Chief Manager, (HR) GAIL (India) Limited who provided me an
distinctive opportunity to work at GAIL(India) Limited.
I would like to express my humble thanks and regards to my guide Mr. U.K.DE
Senior Officer,(HR) Department, GAIL(India) Limited, whose kind supervision and
interest went all way in successful completion of this work.
I would like to thanks all the members of GAIL (India) Limited who directly or indirectly
helped me during my project work.
Savita Sharma
TABLE OF CONTENTS
• Objectives of Study 12
• Scope of Study 13
3 Review of Literature 48
4 Research Methodology and Design 77
5 Data Analysis 81
• Data Representation 82
• Data Interpretation 82
6 Major Findings and Discussion 111
7 Conclusions 114
8 Bibliography 116
9 Annexure 118
EXECUTIVE
SUMMARY
In many organizations - but not all - appraisal results are used, either
directly or in-directly, to help determine reward outcomes. That is, the
appraisal results are used to identify the better performing employees
who should get the majority of available merit pay increases, bonuses
and promotions.
By the same token, appraisal results are used to identify the poorer
performers who may require some form of counseling, training or in
extreme cases, demotion, dismissal or decreases in pay. (Organizations
need to be aware of laws in their country that might restrict their
capacity to dismiss employees or decrease pay.)
The purpose of this study has been to determine whether the performance
appraisal helps the employees to know where they are lacking in their
performance and also to know how performance appraisal helps the
management to take administrative decisions of promotions, transfers,
training and development and wage and salary administration.
INTRODUCTION
1. Administrative Objectives
(i) Promotions: This is the most important use of performance appraisal. It is to the
common interests of both the management and employees to promote employees into
positions where they can most effectively utilize their abilities.
(ii) Transfers: In an organization, it may be necessary to consider various types of
personnel actions such as transfers, layoffs, demotions and discharges. Such actions can
be justified if they are based on performance appraisal
(iii)Training & Development: An appropriate system of performance appraisal can be
helpful in identifying the areas of skills or knowledge in which certain employees are not
up to par, thus pointing out general training deficiencies, which presumable should be
corrected by additional training, discussions or counseling.
(iv)Wage and Salary Administration: In some cases, the wage increases are based on
the performance appraisal reports. In some cases appraisals and seniority are used in
combination.
Periodicity of appraisals
Appraisals typically are conducted once or twice a year, most often annually. For new
employees, common timing is to conduct an appraisal 90 days after employment, again at
six months, and annually thereafter. “Probationary” or new employees, or those who are
new and in a trial period, should be evaluated frequently –perhaps weekly for the first
month and monthly thereafter until the end of the introductory period for new employees.
Performance appraisals can be done by anyone familiar with the performance of
individual employees:
• Supervisors who rate their employees.
• Employees who rate their supervisors.
• Team members who rate each other.
• Employee’s self-appraisal.
• To study the Appraisal system of GAIL and evaluate its benefits in context of
GAIL.
• To study the effectiveness of the existing system of performance appraisal at
GAIL.
• To study whether performance appraisal actually helps the employees to
understand their own strengths and weaknesses with respect to their role and
functions of the company.
• To study the effect of performance appraisal on the relation of employee and his
superiors.
• To determine that whether performance appraisal system really provides an
opportunity to the employees for self reflection and individual goal Settings.
SCOPE Of STUDY
The present study intends to provide an integrated picture of the level of employment
attitude toward performance appraisal system in GAIL (India) Limited. The study was
conducted in GAIL (India) Limited, Noida, in different departments. The study covers
the feedback from different employees of GAIL (India) Limited, Noida towards the
performance appraisal system of the firm.
LIMITATIONS OF STUDY
The biggest limitation of my study was the two months time period of internship which
was not enough to understand performance appraisal of a company. Another Limitation
of this study was I have made this project in GAIL (India) Limited. In such a small period
Getting the views and opinions of the interviewee (HR manager) was a difficult task .
COMPANY PROFILE
GAIL (India) Limited is India's flagship Natural Gas company, integrating all aspects of
the Natural Gas value chain (including Exploration & Production, Processing,
Transmission, Distribution and Marketing) and its related services. GAIL is also
expanding its business to become a player in the International Market. The company
dominates the gas sector, transporting 95% of the total piped gas. It also operates seven
plants to process natural gas into LPG, apart from having a small presence in the
petrochemicals and oil & gas exploration sectors. Company has expanded its operations
into gas processing, petrochemicals, liquefied petroleum gas transmission and
telecommunications. It has also extended its presence in power, liquefied natural gas re-
gasification. Company has set up Gas Technology Institute near Delhi. This Institute is
fully functional with well-equipped laboratories for research and development (R&D)
related mainly to the gas sector. It would pursue joint R&D projects in India and abroad
in association with oil and gas companies, research institutions and universities.
COMPANY OVERVIEW
The company was previously known as Gas Authority of India Ltd. It is India's principal
gas transmission and marketing company. It was set up by the Government of India in
August 1984 to create gas sector infrastructure. GAIL India is the country’s largest gas
transmission company and handled 82 million standard cubic meters per day (mmscmd)
out of the 111 mmscmd of gas supplies in FY08. The company has a pipeline network of
7,000 kms in place. Its pipeline is the lifeline for major gas consumers from the power
and fertilizer sectors. It has also ventured into upstream gas exploration business in order
to reduce dependency on a single source of supply and has secured 30 exploration blocks.
GAIL is a significant player in downstream petrochemicals business with a production
capacity of 410,000 tons per annum. It is also an early mover in city gas distribution with
8 joint ventures and a wholly owned subsidiary, GAIL Gas, is being incorporated. The
company has plans to enter into more than 230 cities. GAIL is listed by Forbes as one of
the world's 2,000 largest public companies in 2007. GAIL commissioned the 2800-km
Hazira-Vijaipur- Jagdishpur (HVJ) pipeline in 1991. During 1991-93, three liquefied
petroleum gas (LPG) plants were constructed and some regional pipelines acquired,
enabling GAIL to begin its gas transportation in various parts of India. GAIL began its
city gas distribution in New Delhi in 1997 by setting up nine compressed natural gas
(CNG) stations. In 1999, GAIL set up northern India's only petrochemical plant at Pata.
VISION
Be a leading company in natural gas and beyond,
with global focus, committed to customer care,
value creation for all stakeholders and
environmental responsibility.
MISSION
Accelerating and optimizing the effective and
economic use of natural gas and its fractions to
the benefit of national economy
• 1990-91
2800Kms Hazira-Vijaipur Jagdishpur (HVJ) pipeline becomes operational in 1991.
LPG phase-I plant at Vijaipur commissioned in February 1991.
• 1991-92
Phase-2 at LPG Vijaipur plant commissioned in Feb 1992.
• 1992-93
LPG project at Vaghodia commissioned in Feb 1993.
• 1994-95
Joint venture Agreement signed with British Gas on December 6, 1994.Mahanagar Gas
Limited Incorporated to implement Bombay City Gas Distribution project.
• 1997-98
Government of India grants Navratna status to Gail, herby entrusting greater autonomy to
Gail after restructuring of the Board.
Gas processing units (GPU), offsite utilities of the petrochemical plant at Pata,
commissioned.
• 1999-00
GAIL participates in NELP bidding by submitting offer for 7 blocks in association with
ONGC & IOC and Russian company Gazprom.Government of India approved award of 2
blocks to GAIL, One with ONGC in Orissa offshore and another with Gazprom in
Bengal Offshore.
LPG plant at Pata with a designed capacity of 2.58 lacs TPA of LPG commissioned for
commercial production in March 2000.
• 2000-01
GAIL conceptualizes a National Gas Grid to connect the supply and demand centres in
the country with high pressure cross country pipelines networks.
The gas processing complex, Gandhar begins production in March 2001.The process
LPG, 0.43 Lacs MT of Pentane and SBP solvent.
Jamnagar-Loni LPG Pipeline project, the worlds longest and India’s first cross country
LPG 1296 Km long pipeline, which passes through Gujrat,Rajasthan,Haryana and Delhi
is completed.
• 2001-02
GAIL picks up 12% equity in GSEG’s 156 MW power project in Gujarat as a strategic
investment.
Marketing functions is restructured and decentralize at zonal levels.
GAILTEL phase-I commissioned, creating an OFC based DWDM network connecting
Delhi-Mumbai, Delhi-Jaipur, Delhi-Ahemdabad, Delhi-Vijaipur, Meerut-Agra.
• 2003-04
GAIL has an initial success in the form of significant gas find in the block A-1 in
Myanmar and discovery of oil and gas in the Cambay block.
GAIL successfully secures participation in 2 retail gas companies in Egypt, Fayum Gas
Company and Shell CNG.
Vizag – Secundrabad LPG pipeline. the 580 km pipeline with the maximum throughput
of 1.16 MMPTPA completed in June 2003
Bhagyanagar Gas Limited, a joint venture of GAIL and HPCL, incorporated in August
2003, in the field of distribution and marketing of auto LPG, CNG for vehicles and
retailing of natural gas in the cities of Andhra Pradesh.
Phase I and II of 8000 km network GAILTEL projects connecting Delhi, Mumbai and 71
other cities, completed. This network provides a national communication backbone.
• 2004-05
Incorporation of GAIL Global Singapore PVT.LTD
Acquisition of 15 % equity stake in Natural Gas, Egypt.
Agreement signed for acquisition of 9 % equity stake in China Gas Holding LTD, a joint
venture for city gas projects in 42 cities of China.
Tripura Natural gas Co.Ltd, a joint venture for city gas project in Tripura, incorporated
UP central gas Ltd, a joint venture for city gas project with BPCL in Kanpur,
incorporated De-bottlenecking of LLDPE swing unit from 150000 MT to 210000 MT at
GAIL Pata. Gas management system commissioned for HVJ, DVPL and SGPL.
Commissioning of South Gujarat pipeline network .Commissioning of Vizag-
Secundrabad LPG pipeline.
• 2005-06
GAIL, ilex Australia, Videocon, HPCL and BPCL consortium awarded Blocks no 56 in
Oman.
GAIL was ranked 11th among top 15 of the worlds largest listed gas utilities firms in the
oil and gas industry ,in terms of market capitalization ,for the year 2005.
GAIL gets Golden Icon award for e-governance Inauguration of the National gas
management centre (NGMC) of GAIL at NOIDA.
GAIL bagged two awards for excellence in cost management from the Institute of Cost
and Works Accounts of India (ICWAI).
• 2006-07
Mechanical completion of new HDPE (High Density Polyethylene) plant with a capacity
of 100,000 TPA at Petrochemical complex at PATA
Commissioning of Dahaj-Panvel pipeline
Brahmaputra cracker and polymer Limited-Joint Venture Company led by GAIL, formed
for implementing Assam gas cracker projects GAIL acquires stake in A7 Myanmar block
GAIL’s Vijaipur- Kota pipeline commissioned. GAIL’s Kailaras- Malanpur pipeline
commissioned GAIL’s consortium wins 3 CBM blocks in 3rd round of bidding GAIL
HPCL joint venture-Avantika gas limited incorporated GAIL ONGC ink gas supply
agreement GAIL brings India’s first spot LNG cargo at Dahej.
Subsidiaries and Joint ventures
Company has been the pioneer for City Gas Projects in India. With natural gas emerging
as the fuel of choice in the country, Company believes that the next decade will belong to
the city gas. It was the first Company to introduce City Gas Projects in India for supplies
to households, commercial users and for the transport sector by forming Joint Venture
Companies.
Joint Ventures
Aavantika Gas Limited (AGL)
GAIL and Hindustan Petroleum Corporation Limited (HPCL) for
implementation of City Gas Projects in the cities of Madhya Pradesh.
AGL has started project implementation activities in the city of Indore .
Company has 22.5% stake in the Company with HPCL as equal partner.
Mahanagar Seva Sadan (VMSS) with 26 percent equity, while VMSS will have 24 per
cent equity. The balance 50 per cent equity will be held by strategic investors and public.
A JV agreement has also been signed with HPCL for city gas projects in Rajasthan.
Business operation
1) Upstream Operation
Every cloud has a silver lining and every adversity hides an opportunity. GAIL's
Exploration and Production (E&P) unit was born in just such a scenario. As the Indian
Economy opened up around the year 2000, the business environment changed
dramatically. For GAIL, liberalization meant competition in core business i.e. midstream
and downstream national gas distribution No longer could they rely on statutory support
mandating secured sources of Natural Gas. The reserves contained in existing contracted
fields were fast depleting. Apart from securing sources for Natural Gas, there were other
compelling reasons for GAIL to get into E&P:
Integration in supply-chain
Large gap in Gas demand and supply
National Gas security
Balancing of Business portfolio
So that GAIL ventured into E&P in 2001. At the end of 2007-08, it has invested Rs. 11.5
billion in this segment. It is involved in oil & gas exploration activities over acreage of
1.7 square km. It has participating interest ranging from 10 to 80 percent in following:
24 domestic blocks
3 overseas blocks
3 CBM
partnership in these blocks with various companies such as ONGCL, GSPCL, OIL,
Hardy Exploration & Production, Petrogas, JOGPL, Daewoo, OVL, IOCL, Korea Gas
Corporation, Hallworthy, BPCL, HPCL and Silver wave. GAIL also has stake in 3
overseas blocks (A-1 and A-3 blocks in Myanmar and Block-56 in Oman).Of these, nine
are offshore blocks and eighteen onshore blocks, of which 13 are deepwater and 5, are
shallow water. Coal Bed Methane (CBM) is stored in coal seams and was generated
during the process of coalification. It occurs within these seams either as free gas in
fractures or in dissolved form in water. The consortium of GAIL (India) Ltd., Arrow
Energy
(India) Pty Ltd., EIG Energy Infrastructure Group AB has been awarded 3 CBM Blocks
in CBM-III Bidding round. The Tata Power Company is also a consortium partner in
two of the awarded blocks. These blocks are in Rajmahal (Jharkhand), Mand Raigarh
(Chattisgarh) and Tata Pani Ramkola (Chhattisgarh).
2) Midstream Operation
a) Petrochemicals
The company has seven gas LPG processing plant with total capacity of 1.2 mtpa 4 plants
are situated along the Hazira Vijaipur Jagdishpur pipeline (two at Vijaipur in
Madhya Pradesh , one at vaghodia in Gujarat, and one at oriya in Uttar Pradesh ,and one
each in Lakwa Assam , Usar , Maharashtra an d Gandhinagar Gujarat). The total liquid
hydrocarbon production was over 1.348 million tonnes, which included 1.043 MT of
LPG 0.156 tm of propane and 0.074 tm of pentane the company’s board of director has
recently approved them doubling capacity of its pata petrochemical complex in UP to 0.8
mtpa .the installed polymer capacity at pata is 0.41 mta, which will be increased by
leveraging existing facility and augmenting them. Company is setting up 280000 tpa
petrochemical plant in Assam at an investment of Rs 54.6 billion. It has also signed an
agreement with HPCL, OIL, Mittal investment and France total to set up another
petrochemical complex and crude oil refinery at Vishakhapatnam in AP.GAIL has a 70%
equity stake in Brahmaputra cracker and polymer limited. The other equity partners are
OIL, Numaligarh Refinery Limited and the Govt of Assam is having a 10% equity stake.
b) Pipeline Operation
Interstate pipelines provide open access for shipment of natural gas. Gas enters an
interstate pipeline from gathering systems and from interconnecting pipelines. Beginning
at individual wellheads, gathering systems usually consist of smaller diameter pipe
operating at lower pressure. Gas conditioning is usually performed to reduce
contaminants such as water from gathered gas before it is compressed into the
transmission system. Gas leaves the transmission system through delivery points to other
interstate pipelines, local distribution companies and directly to end users such as
industrial facilities and power plants. Local distribution systems deliver gas to residential,
commercial and industrial end users. The basic components of an interstate pipeline
include steel pipe, valves, and compression, processing and storage facilities. Pipe sizes
vary widely with much of the pipe in the 20-inch to 36-inch diameter range and wall
thickness of about one quarter to one-half inch. A typical range of operating pressures for
a transmission system is 300 to 1440 psig. Powered by natural gas or electricity,
compression is one of two types: reciprocating or centrifugal. Processing facilities extract
undesirable contaminants (such as hydrogen sulfide and water) and marketable
hydrocarbons (such as propane and gasoline). Storage facilities have been developed
from depleted oil fields, coal mines, salt domes, aquifers and reefs. These facilities can be
used for peak-shaving hourly demands and short-term, as well as, seasonal storage of gas.
Much of the gas that is transported on interstate pipelines is nominated, that is, scheduled
in advance of actual gas flow. Deliveries into local distribution companies that serve
weather-sensitive markets, however, cannot be known with absolute certainty. Such
demand is met in part with "no-notice" service, which is usually supplied from
inventories of the customers' gas, which is stored in the pipeline's storage facilities.
3) Downstream operation
Natural Gas usage in Indian cities has been limited primarily due to the scarcity of
supply. However this scenario is undergoing change with several LNG
projects/transnational pipelines under implementation, which together with new domestic
Gas finds are expected to shore up the supply deficit in the next few years. Meanwhile
the market for city gas distribution is also set to grow at an accelerated pace. The CNG
demand got a boost with the Supreme Court directive on pollution reduction in 12 major
cities in India. The domestic segment is also expected to grow with the government's
intentions to remove the subsidy on LPG cylinders in a phased manner in 3-5 years
making piped gas even more economical.
4) Overseas Operation
GAIL has a 10 % equity stake in block A! Ink Myanmar where huge gas reserve has been
discovered recently. It also has a 10 % stake in block A3. It has stake in block56 in
Oman. However GAIL’S share in the blocks has been reduced following Myanmar’s
national oil company exercising its “step in” right’s to 8.5%. In 2003 -04 GAIL acquired
equity stakes in CGD project of fayum gas and shell gas in the Egypt. GAIL has setup a
wholly owned subsidiary on Singapore, christened GAIL Global private limited, two
undertake overseas investment, the subsidiary a 15% equity stake in the Egyptian
national gas company- one of the largest natural gas distributing companies in the private
sector in Egypt. The company also has a 50% stake in a JV formed with china gas
holding limited to undertake projects in china, India and other countries.
• Natural gas
• Petrochemicals
• Exploration and production
• LPG and other Liquid hydrocarbons
• Telecommunication
1. Natural gas
With only one carbon and four hydrogen atoms per molecule, Natural Gas has the lowest
carbon to hydrogen ratio, hence it burns completely, making it the cleanest of fossil fuels.
Natural Gas satisfies most of the requirements for fuel in a modern day industrial society,
being efficient, non-polluting and relatively economical. The periodic uncertainties and
volatility in both the price and supply of oil, have also helped Natural Gas emerge as a
major fuel in the energy basket across countries.
Natural Gas comes in 4 basic forms:
Liquefied Natural Gas, LNG - Natural Gas which has been liquefied at -160 Natural Gas
is liquefied to facilitate transportation in cryogenic tankers across sea
Regasified Liquefied Natural Gas, RLNG -
Compressed Natural gas, CNG - Natural Gas compressed to a pressure of 200-250
kg/cm2 used as fuel for transportation, CNG decreases vehicular pollution
Piped Natural gas, PNG - Natural Gas distributed through a pipeline network that has
safety valves to maintain the pressure assuring safe, uninterrupted supply to the domestic
sector
2. LPG & Allied Products: LPG GAIL produces LPG through fractionation, known as
Straight Run (SR). GAIL LPG is an eco-friendly fuel and provides a cheaper and
effective means of reducing pollution and increasing productivity.
LPG : Applications
Domestic: For use in household
Commercial: For use in hotels, bakeries, canteens, etc
Auto: For use as fuel in automobiles
Industrial: For use in production process, details of which are as under:
INDUSTRY APPLICATION
Grain drying/ Weed killing/ Preservation of fruits/ Tobacco
Agriculture
curing/ Tea drying
Automobile Heat treatment/ Paint baking
Ceramics Biscuit and Gloss firing of porcelain & stoneware
Chemicals and Drugs Heating and Drying
Bulbs and Tubelights manufacturing/ Filament manufacturing/
Electrical
Battery manufacturing
Food Baking/ Boiling/ frying/ milk drying
Glass Melting/ holding/ feeding/ working/ Fire polishing
Annealing/ Billet heating/ Melting/ Descaling/ Stress relieving/
Metallurgical
Mould/ Cupola/ Laddle heating
Metal Working Steel cutting/ Hole piercing/ Welding of non ferrous metals
Packaging Metal box soldering
Drying/ Singeing/ Velvet processing calendaring / Print drying/
Textile
Dyeing
Transport Engine fuel
Aerosols propellant/ Amarjyotis / Torches/ Bird scarers /
Miscellaneous
Bitumen Melting in water proofing industry and road making
GAIL LPG is valued in Industry because of its high energy heat, homogeneous content,
cleanliness and easy availability. Industries prefer to use GAIL LPG to power process
furnaces, dryers, ovens, kilns, paint shops, etc.
Process Heating: Homogeneous composition leads to no residue on combustion and
accurate temperature control. Air Fuel ratio need not be changed with every batch.
Excellent application in manufacture of textiles, glass, picture-tubes, automobile,
bearings, etc.
Metal Processing: Clean burning. No residue of Sulphur, Lead & Carbon leads to
minimum scaling losses. Melting operations are homogeneous due to constant
temperature control. Excellent applications in forging, wire drawing, casting, melting
industry
Paintings nits: No unburned fuel and residues. Ability to have constant temperature
control results in effective and uniform heating with minimum fuel. Major car
manufacturers use GAIL LPG for paint shops. Also finds applications in food processing,
ink printing, etc.
Kilns & Furnaces: Accurate temperature control leads to enhanced productivity, reduces
costs & pollution. No deposits of carbon lead to reduction in downtime and
contamination. Excellent application in ceramics, heat treatment units.
Drying Ovens: Finds excellent application in drying ovens due to less maintenance than
oil systems because of one step heat transfer.
Metal Industry: Usage of GAIL LPG leads to greater flame stability. No risk for
overheating or blow back. Preferred over oxyacetylene fuel due to greater flame stability
and efficiency
LPG : Production
GAIL produces LPG at its seven fractionating units. Detail of locations and their and
their production capacity are given below
• Vijaipur(2 Nos) , Madhya Pradesh
• Auraiya Pata, UP
• Gandhar & Vaghodia, Gujarat
• Usar, Maharasthra
• Lakwa, Assam
GAIL is one of the largest indigenous producer of LPG. During 2006-2007 GAIL
had produced about 10,25,900 MT (12 %) LPG against total all-India indigenous
LPG production of 84,04,000 MT
GAIL LPG is being supplied to PSU Oil Marketing Companies namely IOCL, BPCL,
HPCL and IBP Ltd ex-Production Units at Import Parity Price.
3. Petrochemicals
GAIL's the country's premier Natural Gas Marketer & Transporters , diversified into the
manufacturing and marketing of downstream HDPE & LLDPE from natural gas cracking
at its Pata (Uttar Pradesh state, India) unit from 19th April 1999. The beginning was with
a name plate capacity of 2,60,000 MTPA of HDPE and LLDPE. In FY 2007-08, the
petrochemical business portfolio contributed over 32% of the segment gross profit.
GAIL is the only HDPE/LLDPE plant operating in Northern India and has a dominant
market share in North India. The primary thrust markets for the polymers had been
Western India, but, with the entry of GAIL in the HDPE & LLDPE market segments,
today north India has also witnessed a rapid and significant growth in the polymer
downstream processing segments. In a successful span of about a decades of establishing
and marketing its grades under the brand names G-Lex & G-Lene, GAIL has along side
augmented its name plate capacity of HDPE & LLDPE to 4,10,000 MTPA by adding
another dedicated HDPE downstream polymerization unit of 1,00,000 MTPA.
Agreement signed on February 28, 2000, for 20 years. Commercial production was
declared with the commissioning of the Gas Turbines in open cycle mode in December
2001. Subsequent to successful completion of performance tests, Combined Cycle
operation commenced from June 2002.The plant is running smoothly with high
Availability and Plant Load Factor.
5. Gailtel
The GAILTEL service arm of GAIL, is engaged in providing GAILTEL services to
mission critical in-house SCADA and ERP services apart from commercially leasing
services to GAILTEL Operators and ISP’s across India. GAILTEL has been operating
commercially in the Indian GAILTEL sector since June 2001. It is also responsible for
meeting the captive communication requirements of GAIL’s pipeline installations.
GAILTEL, today serves most of the GAILTEL operators of the country, which include
HUTCH, VSNL, Airtel , Idea Cellular, Reliance Infocom, Tata Tele services, to name a
few. Its high speed optic-fibre network extends to well over 13,000 Km connecting
around 200 cities across various states like: Rajasthan, Gujarat, Madhya Pradesh,
Maharastra , Uttar Pradesh, Andhra Pradesh, Haryana, Chandigarh, Delhi, Karnataka,
Tamil Nadu and Kerela. With SDH & DWDM as the core layer, the network is built
largely along the highly secured GAIL’s cross country pipeline corridor and also
configured in "self-healing" rings to ensure highly reliable and error free service to its
esteemed customers. The network is managed centrally on round the clock basis from a
state-of-art Network Management Centre at Noida
6. Exploration and Production
Every cloud has a silver lining and every adversity hides an opportunity. GAIL's
Exploration And Production (E&P) unit was born in just such a scenario.As the Indian
Economy opened up around the year 2000, the business environment changed
dramatically. For GAIL, liberalisation meant competition in our core business i.e.
midstream and downstream national gas distribution No longer could we rely on statutory
support mandating secured sources of Natural Gas for GAIL. The reserves contained in
existing contracted fields were fast depleting. The writing was on the wall that we had to
find new sources.
Apart from securing sources for Natural Gas, there were other compelling reasons for
GAIL to get into E&P:
• Integration in supply-chain
• Large gap in Gas demand and supply
• National Gas security
• Balancing of Business portfolio
• Global opportunity
August 2001, therefore, saw the launch of GAIL's Exploration & Production (E&P) unit.
Initially, NELP rounds were targeted, and we won 12 blocks under four NELP rounds.
GAIL also clinched a chunk of the much sought after A-1 block in Myanmar, in its
maiden international E&P venture. The year 2004 placed GAIL firmly on India's E&P
map, with the dual strike of gas in Myanmar and oil in Cambay. We are also acquiring
international acreages and actively pursuing various international E&P opportunities.We
knows that the future will be demanding. And we are ready to embrace it, acquiring the
suitable technological equipment and expertise, and enhancing our manpower strength.
GAIL is currently participating in 27 exploration blocks, in Basins such as Mahanadi,
Mumbai, Cambay, Assam-Arakan, Tripura Fold Belt, Krishna Godavari, Cauvery and
Cauvery Palar. GAIL has partnership in these blocks with various companies such as
ONGCL, GSPCL, Hardy Exploration & Production, Petrogas, JOGPL, Eni, Oilex and
Daewoo as Operators. Out of these 27 E&P, 3 blocks are overseas (A-1 and A-3 blocks in
Myanmar and Block-56 in Oman). GAIL is participating in three CBM blocks awarded to
the consortium under CBM-III bidding round. Arrow Energy is the Operator of all the
three CBM blocks. GAIL is a member of National Gas Hydrate Programme being
coordinated by DGH and is actively involved in activities related to Gas Hydrate
exploration.A list of current Exploration blocks in which GAIL is participating is on the
link 'E&P and CBM Blocks' showing Participating Interest (PI) of GAIL. 3 of these
blocks were awarded during NELP-II, 2 during NELP-IV, 3 during NELP-V, 15 during
NELP-VI and 1 during NELP-VII. GAIL has farmed-in three blocks. The total area for
E&P Blocks is 172,275 KM2.
GAS
TRANSMISSION
7000 KM (148)
E&P MMSCMD)
27BLOCKS LPG
TRANSMISSION
CBM 1922 KM (3.8
3 BLOCKS MMTPA)
GAS
PROCESSING
LNG 7 PLANTS
PLL, RGPPL
10MMTPA (1.2)))MMTPA
)
PETROCHEM
GAS & POWER
GSEG, RGPPL POLYETHYLEN
(2250MW) E
(410,000 TPA)
OVERVIEW OF INDUSTRY
The Indian oil and gas sector is one of the six core industries in India and has very
significant forward linkages with the entire economy. India has been growing at a decent
rate annually and is committed to accelerate the growth momentum in the years to come.
This would translate into India's energy needs growing many times in the years to come.
Hence, there is an emphasized need for wider and more intensive exploration for new
finds, more efficient and effective recovery, a more rational and optimally balanced
global price regime - as against the rather wide upward fluctuations of recent times, and a
spirit of equitable common benefit in global energy cooperation.
The Indian oil and gas sector is of strategic importance and plays a predominantly pivotal
role in influencing decisions in all other spheres of the economy. The annual growth has
been commendable and will accelerate in future consequently encouraging all round
growth and development. This has necessitated the need for a wider intensified search for
new fields, evolving better methods of extraction, refining and distribution, the
constitution of a national price mechanism - keeping in mind the alarming price
fluctuation in the recent past and evolving a spirit of equitable global cooperation.
Oil and Gas Sector: An Overview
Exploration and Production (E&P)
The growing demand for crude oil and gas in the country and policy initiative of
Government of India towards increased E&P activity, have given a great impetus to the
Indian E&P industry raising hopes of increased exploration.
Oil and Natural Gas Corporation Limited (ONGC) and Oil India Ltd. (OIL), the two
National Oil Companies (NOCs) and private and joint-venture companies are engaged in
the exploration and production (E&P) of oil and natural gas in the country. During the
year 2008-09, crude oil production has been 33.51 million metric tonnes (MMT) with
natural gas at 32.85 billion cubic metre (BCM).Natural gas production in 2009-10 is
targeted to be about 52.116 BCM.
Imports and Exports of crude oil and petroleum products
During the financial year 2008-09, imports of crude oil has been 128.16 MMT valued at
US$ 73.97 billion. Imports of crude oil during 2007-08 was 121.67 MMT valued at US$
58.98 billion. This marked an increase of 5.33 per cent during 2008-09 in quantity terms
and increased by 25.37 per cent in value terms.
During the financial year 2008-09, exports of petroleum products in quantity terms is
36.93 MMT valued at US$ 25.41 billion marking an increase of 6.02 per cent in value
terms compared to 2007-08.
New Exploration Licensing Policy (NELP)
New Exploration Licensing Policy (NELP) provides an international class fiscal and
contract framework for Exploration and Production of Hydrocarbons. In the first seven
rounds of NELP spanning 2000-2009, Production Sharing Contracts (PSCs) for 203
exploration blocks have been signed. Under NELP, 70 oil and gas discoveries have been
made by private/joint venture (JV) companies in 20 blocks.
With a view to accelerate further the pace of exploration, the eighth round of NELP was
launched in April 2009.In the eighth round of NELP,70 exploration blocks comprising of
24 deepwater blocks,28 shallow water blocks and 18 onland blocks will be offered.
Natural Gas
Natural Gas has emerged as one of the most preferred fuel due to its environmentally
benign nature, greater efficiency and cost effectiveness. At present, the main producers of
natural gas are Oil and Natural Gas Corporation Limited (ONGC), Oil India Limited
(OIL) and the Joint Ventures of Panna Mukta & Tapti, and Ravva. Out of the total
production of around 96 MMSCMD, after internal consumption, LPG extraction and
unavoidable flaring, around 73 MMSCMD is available for sale to various consumers. In
addition, around 7 MMTPA of re-gasified LNG (about 23 MMSCMD) is also being
supplied to domestic consumers.
Gas produced by ONGC and OIL from the existing nominated blocks is sold at
administered prices fixed by the Government. As against a total allocation of 150
MMSCMD of gas, actual supply under APM is presently around 53 MMSCMD.
Public Sector Undertakings
• Oil & Natural Gas Corporation Limited (ONGC)
Oil & Natural Gas Commission (then Commission) was established on 14th August,
1956 as a statutory body under Oil & Natural Gas Commission Act (The ONGC Act), for
the development of petroleum resources and sale of petroleum products. ONGC was
converted into a Public Limited Company under the Companies Act, 1956 and named as
“Oil and Natural Gas Corporation Limited” with effect from February 1, 1994.
• Oil India Limited (OIL)
Oil India Limited (OIL), a Government of India Enterprise, under the administrative set-
up of Ministry of Petroleum and Natural Gas, is engaged in the business of exploration,
production and transportation of crude oil and natural gas. The authorized capital of the
company is Rs. 500.00 crores and the paid up capital of the company is Rs. 214.00 crore.
OIL produces crude oil and natural gas from its oilfields in Assam and Arunachal
Pradesh, non-associated gas from its fields in western Rajasthan and processes LPG from
the natural gas in Assam. The Company presently has operational areas in Assam,
Arunachal Pradesh, Mizoram, Orissa, Uttar Pradesh, Uttarakhand and Rajasthan in the
country.
Bharat Petroleum Corporation Limited (BPCL) and Oil and Natural Gas Corporation
Limited, and 1 by Numaligarh Refinery Limited (a subsidiary of BPCL). The private
sector refineries belong to Reliance Industries Limited and Essar Oil Limited.
• Chennai Petroleum Corporation Limited (CPCL)
Chennai Petroleum Corporation Limited (CPCL) formerly known as Madras Refineries
Limited was formed as a joint venture in 1965 between the Government of India (GOI),
AMOCO India Inc., U.S.A. and National Iranian Oil Company (NIOC) having a share
holding in the ratio 74%: 13%: and 13% respectively. In 1985, AMOCO disinvested in
favor of GOI and the shareholding percentage of GOI and NIOC stood revised at 84.62
and 15.38 respectively. Later, GOI disinvested 16.92% of the paid up capital in favor of
Unit Trust of India, Mutual Funds, Insurance Companies and Banks on 19th May 1992,
thereby reducing its holding to 67.7%. A public issue of CPCL shares was also made in
1994. As a part of the restructuring steps taken up by the Government of India, Indian Oil
Corporation Limited (IOCL) acquired equity from GOI in 2000-01. Currently, IOCL
holds 51.88% while Naftiran Inter-trade Company Limited (an affiliate of NIOC)
continued its holding at %.CPCL has two refineries, with a combined refining capacity of
10.5 million metric tonnes per annum (MMTPA). The Manali Refinery in Chennai has a
capacity of 9.5 MMTPA and is one of the most complex refineries in India with Fuel,
Lube, Wax and Petrochemical feedstock’s production facilities. The second refinery at
Cauvery Basin, Nagapattinam was set up initially with a capacity of 0.5 MMTPA in 1993
and later its capacity was enhanced to 1.0 MMTPA in 2002.
• Bongaigaon Refinery & Petrochemicals Limited (BRPL)
BRPL was incorporated on February 20,1974 , with the objective of installation of
Refinery having crude processing capacity of 1 MMTPA and a Petrochemical Complex
consisting of Xylene Dimethyl Terephthalate (DMT) and Polyester Staple Fibre (PSF)
units. The crude processing capacity of the Refinery was enhanced to 2.35 MMTPA in
1995-96 by commissions of its Refinery Expansion Units. The authorized equity capital
and the paid-up capital of the Company is Rs.200 crore and Rs.199.82 crore respectively.
The Government of India disinvested its equity share of 74.46% to Indian Oil
Corporation Limited (IOCL) in March, 2001 and hence BRPL became the subsidiary
Company of IOCL on 29th March, 2001.
• Numaligarh Refinery Limited (NRL)
Numaligarh Refinery, Popularly known as “Assam Accord Refinery” had been set up as a
grass-root refinery at Numaligarh in the District of Golaghat (Assam) in fulfillment of the
commitment made by Government of India in the historic “Assam Accord”, signed on
15th august, 1985 for providing the required thrust towards industrial and economic
development of Assam. Both the Refinery and its adjacent Marketing Terminal were
completed within the approved project cost of Rs.2724 crore. Commissioning process of
Numaligarh Refinery was completed in June 2000 and commercial production
commenced from 1st October, 2000.
• Mangaore Refinery & Petrochemicals Limited (MRPL)
Mangalore Refinery and Petrochemicals Limited (MRPL), first joint venture company for
setting up a crude petroleum Refinery in India was formed in 1987 jointly by Hindustan
Petroleum Corporation Limited along with Indian Rayon and Industries Limited and its
associate companies (A.V. Birla Group). The refinery project was commissioned in
March, 1996 with an actual capacity of 3.69 MMTPA. The expansion project of MRPL,
having capacity of 9.69 MMTPA, was commissioned in April, 2001. The refinery is
located at Mangalore on the western coast of India, primarily conceived to maximize
middle distillates, such as kerosene and diesel. The refinery is designed to process light to
heavy and sour to sweet crude. The performance of MRPL started deteriorating after
dismantling of APM for refineries in April, 1998 and the Company came very close to
becoming a sick company by 2002-03.
With the approval of the Government, ONGC acquired the entire stake of Aditya Birla
Group in MRPL for Rs.59.43 crore and also infused additional equity capital of Rs.600
crore in March, 2003 as part of the approved debt restructuring plan. With this, ONGC
acquired 51% stake in the equity of MRPL. Thus, MRPL became a Government
company within the meaning and scope of Section 617 of the Companies Act, 1956 and
also a subsidiary company of ONGC. In June / July 2003, ONGC acquired 35.80 crore
equity shares held by banks and financial institutions issued against part conversion of
their loans in terms of debt restructuring plan, increasing its stake in MRPL to 71.62%.
MRPL is the first refinery in India to produce Euro-III High Speed Diesel (HSD) and
Euro-III Motor Spirit (Petrol).
Other Undertakings/organizations
• Directorate General of Hydrocarbons (DGH)
The Directorate General of Hydrocarbons (DGH) was established under the
administrative control of Ministry of Petroleum & Natural Gas by Government of India
Resolution in 1993. Objectives of DGH are to promote sound management of the oil and
natural gas resources having a balanced regard for environment, safety, technological and
economic aspects of the petroleum activity. DGH has been entrusted with certain
responsibilities concerning the Production Sharing Contracts for discovered fields and
exploration blocks, promotion of investment and monitoring of E&P activities including
review of reservoir performance of major fields. In addition, DGH is also engaged in
opening up of new/unexplored areas for future exploration and development of
nonconventional hydrocarbon energy sources.
• Engineers India Limited (EIL)
Engineers India Limited (EIL) was established in 1965 to provide engineering and related
technical services for petroleum refineries and other related projects. Over the years, it
has diversified into and excelled in various fields. EIL has emerged as Asia’s leading
design, engineering and turnkey contracting company in Petroleum Refining,
Petrochemicals, Chemicals & Fertilizers, Pipelines, Offshore Oil & Gas, Onshore Oil &
Gas, Terminals & Storages, Mining & Metallurgy and Infrastructure Engineers India is
an ISO 9001:2000 accredited Company.
• Balmer Lawrie & Co. Ltd. (BL)
Balmer Lawrie & Co. Ltd. (BL) was established in 1867 as a Partnership Firm and was
incorporated as Private Limited Company in 1924. It was subsequently converted into a
Public Limited Company in the year 1936 with its Registered Office at Kolkata. Biecco
Lawrie Limited (BLL), a Government of India Enterprise, under the administrative
control of the Ministry of Petroleum & Natural Gas (MOP&NG), was established in 1919
and became a Government Company in 1972. This is a medium sized Engineering Unit
with diversified activities having two factories located at Kolkata.
• Oil Industry Development Board (OIDB)
The Oil Industry (Development) Act, 1974 was enacted following successive and steep
increase in the international prices of crude oil and petroleum products since early 1973,
when the need of progressive self-reliance in petroleum and petroleum based industrial
raw materials assumed great importance.
• Oil Industry Safety Directorate (OISD)
The Oil Industry Safety Directorate (OISD) assists Safety Council under Ministry of
Petroleum & Natural Gas (MOP&NG) headed by Secretary, P&NG as Chairman and
includes Additional / Joint Secretaries, Advisors in MOP&NG, Chief Executives of all
Public Sector Undertakings (PSUs) under the Ministry, Chief Controller of Explosives
(CCE), Advisor (Fire) of the Govt. of India, DGMS and the Director General of Factory
Advice Service & Labour Institute etc. as members.
• Centre for High Technology (CHT)
Centre for High Technology (CHT) was established in 1987 as a specialized agency of
the oil industry to assess futuristic requirements, acquire, develop and adopt technologies
in the field of refinery processes, petroleum products, additives, storage and handling of
crude oil, products and gas.
• Petroleum India International (PII)
Petroleum India International (PII) is a consortium of Public Sector Companies in the
petroleum, Petrochemicals and engineering sector. The member companies include
Indian Oil Corporation Ltd., Bharat Petroleum Corporation Ltd., Bongaigaon Refinery &
Petrochemicals Ltd., Chennai Petroleum Corporation Ltd., Engineers India Ltd.,
Hindustan Petroleum Corporation Ltd, Oil India Ltd and Indian Petrochemicals
Corporation.
Initiatives
National Auto Fuel Policy
The Auto Fuel Policy aims to comprehensively and holistically address the issues of
vehicular emissions, vehicular technologies, and auto fuel quality in a cost-efficient
manner while ensuring the security of fuel supply. The policy objectives are:
(i) Ensure sustainable, safe, affordable and uninterrupted supplies of auto fuels of right
quality to support social and economic development. One of the key factors for meeting
this policy objective is to diversify the sources and reduce dependence on any single
source of supply.
(ii) Over the years, infrastructure for the import of crude and crude products, their
processing and production, and storage and transportation has been created in the
country. Considerable investment has been made in developing this infrastructure and the
logistics for the distribution of petroleum products in the country. The Auto Fuel Policy
is committed to an optimal utilization of such an infrastructure.
(iii) Assess the future trends in emission and air quality requirements from the view point
of public health, and establishment of a consistent framework within which different
policy options to reduce emissions can be assessed. It is, therefore, required that
environmental objectives for air quality be determined, emission reduction targets be
established, input data on costs and benefits be collected and cost effective measures to
reduce emissions be identified .Appropriate institutional arrangements to be put in place
to where such activities can be handled effectively.
(iv) Adopt such vehicular emission standards that they together with other measures, will
be able to make a decisive impact on air quality, without placing an undue burden on the
people.
(v) Vehicular emission standards and auto fuel quality should offer choice to the citizens
and equally a choice to automobile manufactures in matters of technology selection.
Principles of widening the choice and promoting competition amongst automobile
technologies, within the limits that are imposed by the availability of auto fuels and
security of their supplies.
(vi) As elsewhere in the world, the Government should decide only the vehicular mission
standards and the corresponding fuel specifications without specifying vehicle
technology and the type of fuel.
(vii) The requirement of investments to reach vehicular technology and fuel quality of
Euro III equivalent levels throughout the country is estimated in the range of Rs. 50,000 -
Rs. 60,000 crore. Therefore, to achieve the air quality targets by gradually improving
emission standards and a phased up gradation of fuel quality and vehicular technology,
taking note of the financial, technical and institutional considerations as also the
absorptive capacity is required.
FDI Policy
The present policy on FDI in the Petroleum & Natural Gas sector vide Press Note No 5
(2008) permits FDI up to 100% under the automatic route in all activities other than
refining and including market study and formulation, investment/financing, setting up
infrastructure for marketing in Petroleum and Natural Gas Sector subject to sectoral
policy.
In Refining, FDI up to 49% in case of Public Sector Undertakings, without involving any
divestment or dilution of domestic equity in existing public sector undertakings through
Foreign Investment Promotion Board (FIPB) and FDI up to 100% is permitted in case of
Private Companies under Automatic route subject to sectoral policy.
Key Players : Indian Oil , Reliance, Bharat Petroleum, HP, ONGC , BP, BG Group , Gaz
de France, Chevron
Foreign Direct Investment (FDI) Policy
The present policy on FDI in the petroleum & natural gas sector vide press note no 5
(2008) permits FDI up to 100% under the automatic route in all activities other than
refining, investment/financing, setting up infrastructure for marketing in petroleum and
natural gas sector subject to sectoral policy including market study and formulation.
LITERATURE
REVIEW
The concept of Performance Appraisal dates back to the First World War and was then
called “Merit Rating Program”. Over a period of time, this concept has been through an
ocean of change. The areas of evaluation have also changed.
order to profit. Kaplan and Norton (1992) show that traditional financial measures fail to
provide information on what customers want and how competitors are performing.
This is one of the reasons why a Performance Measurement Revolution started in the
early 1990s. Many authors started to design and implement PMSs, which were able to
overcome the shortages of the traditional PMSs. According to Neely (1999), there are
seven main reasons for the ‘performance measurement revolution’:
• The changing nature of work, making traditional accounting systems with their
emphasis on direct labour obsolete.
• Increasing competition, driving a need for measures of quality of service,
flexibility, customisation, innovation and rapid response.
• Specific improvement initiatives that rely on performance measurement, such as
Total Quality Management, Lean Production or World Class Manufacturing.
• The establishment of national and international quality awards.
• Changing organisation roles for performance measurement from accounting to
human resource managers.
• Changing external demands on performance accountability, such as the demands
from regulators in newly deregulated industries.
• The power of information technology, making the capture and analysis of data far
easier, and opening up new opportunities for data review and subsequent action.
During this ‘performance measurement revolution’, many PMSs were developed such as
the Balanced Scorecard (Kaplan, Norton, 1992), Performance Pyramid (Lynch, Cross,
1991), and the Performance Prism (Neely, Adams, 2000). The objective of such systems
is to help organisations define a set of measures that reflect their objectives and assess
their performance accordingly. These systems are usually multidimensional, explicitly
balancing financial and non-financial measures. A wide range of criteria has also been
developed, indicating the functions and elements of effective performance measures and
measurement systems.
Besides these functions, a wide range of factors have been developed that distinguish
effective performance measurement systems from less effective PMSs. First of all, the
performance measures on which the system is based, should be relevant, balanced, and
related to the company’s strategy. Performance measurement should be based on
financial as well as non-financial PI’s, because quality or other non-financial goals are
often part of a company’s strategy. According to Evans (2004), one of the limitations of
traditional accounting measures is that they are often not able to translate strategy into
measures that uniquely communicate an organisation’s vision. Measures need to be
related directly to the organisation’s mission and objectives in order to reflect the
company’s external competitive environment, customer requirements and internal
objectives (Kennerley, Neely, 2002). Performance measures need to be balanced in terms
of financial and non-financial measures, related to internal and external stakeholders, and
consisting of leading and lagging indicators (Evans, 2004).
In order to ensure that PMSs remain relevant, they should be reviewed periodically
(Lynch, Cross, 1991). Yet few organisations appear to have systematic processes in place
for managing the evolution of their measurement systems (Kennerley, Neely, 2002).
Bititci et al. (2000) propose audit tools that enable organisations to identify whether their
existing measurement systems are appropriate given their environment and objectives.
Many authors point out that a proper organisational and information system structure is a
prerequisite for an effective PMS. According to Amaratunga and Baldry (2002), a proper
organisation structure includes involved leadership, open communication, and a reward
system that is linked to performance measures. A highly developed information system is
also an important part of the organisation structure. Bourne et al. (2000) show that
performance measurement systems requiring regular reporting are best automated. Bititci
et al. (2000) point out that the main benefit of using an IT platform for managing the
PMS within an organisation is that the maintenance of the information contained within
the systems becomes much simpler. They also set up some requirements for an IT
platform, which is suitable in such a situation.
Finally, effective PMSs are linked to elements of human resource management, such as
competence management; goal setting and sharing; feedback; and reward (Neely, 1999).
Especially reward has been a hot topic recently and there is considerable debate as to
whether performance measures should be linked to reward. According to Dumond
(1994), providing feedback to individuals with regard to where they stand on the
performance measures is essential. This can enhance performance by providing
motivation or information about the correctness and adequacy of work behaviour, and
can also provide workers with a sense of accomplishment, competence and control.
Five performance measurement systems in practice
During the Performance Measurement Revolution, many Performance Measurement
Systems have been developed to overcome the drawbacks of traditional performance
measurements systems, described earlier in this paper. According to Frigo and
Krumwiede (1999), survey data suggest that between 40 and 60 percent of companies
significantly changed their measurement systems between 1995 and 2000. In this paper,
we review five influential PMSs, and assess their suitability as performance measurement
system for purchasing: the Balanced Scorecard (Kaplan, Norton, 1992), the Tableau de
Bord (a French approach developed in the 1930s), the Performance Prism (Neely,
Adams, 2000), the Performance Pyramid (Lynch, Cross, 1991), and the Productivity
Measurement and Enhancement System (Pritchard, 1990).
The BSC is not a static list of measures, but rather a logical framework for implementing
and aligning complex programs of change, and, indeed, for managing strategy-focused
organizations (Abran, Buglione, 2003). The scorecard translates the vision and strategy of
a business unit into objectives and measures in the four different areas. This is also
depicted in Figure 1.
Figure 1 - The four perspectives of the BSC
Many authors, including Kaplan and Norton (1996b), assume the following causal
relationship: improvements in organizational learning and growth precede improvements
in internal business processes, which precede improvements in the customer perspective,
which in turn precede improvements in financial measures. The measures of
organizational learning and growth are therefore the drivers of the measures of the
internal business processes. This allows the measurements in non-financial areas to be
used to predict future financial performance.
Although there is some criticism on the BSC (e.g., Norreklit 2000) it has, according to
Abran and Buglione (2003), the largest market penetration of all PMSs and tackles
performance at several levels, from the organizational level to the small business unit,
and to the individual level. Butler et al. (1997) state that it has been adopted by many
companies and its format and content appear to meet several management needs . Silk
(1998) estimated that 60% of Fortune 1000 companies in the USA have had experience
with Balanced Scorecards.
In Europe, however, the BSC seems to be less popular. Speckbacher et al. (2003), in a
study conducted in Germany, Austria and Switzerland, find that only 26% of their sample
of 174 firms used some form of a BSC, and then usually only a limited or incomplete
version. Also in France, the BSC has not received a particularly warm welcome, where
the Tableau de Bord has been used for at least 50 years. According to Bourguignon et al.
(2004), the BSC was known to only 41% of the responding firms and only 3% aimed to
implement one. The Tableau de Bord is in many ways similar to the BSC, and some
authors have even suggested that, being a precursor of the Balanced Scorecard, it may
have inspired its development (Chiapello, Lebas, 2001). The Tableau de Bord is
discussed in the next subsection.
From a purchasing perspective, a supplier, or organisational input, perspective is
noticeably lacking in the BSC. In practice, this has lead many purchasing organisations to
adding a fifth, supplier perspective to the BSC in order to make it useable for purchasing
(e.g., Aich, Fiedler, 2002). As purchased inputs may account for 60-80% of business
turnover, it is in fact rather difficult to understand that the BSC is so widely used as a
performance measurement system for the total business.
which the unit identifies its Key Success Factors, which then get translated into a series
of quantitative Key Performance Indicators (KPIs).
According to Epstein and Manzoni (1998), the TdB should primarily contain KPIs that
are largely controllable by the sub-unit. At the same time, sub-units often need to
collaborate on interdependent tasks and projects. Such areas of interdependence should
be identified, and then reflected by choosing indicators that capture the interdependence
and encourage sub-units to collaborate more effectively. Furthermore, Bourguignon et al.
(2004) state that most authors insist on including a learning perspective in the TdB,
according to which the measures represent a basis for learning about the cause-and-effect
relationships of actions. The basic idea is that, if realised performance does not meet the
standard, the cause for this should be found and the problem solved (single-loop
learning), but the path should also be questioned (double-loop learning).
Figure 2 - The nested structure of the Tableau de Bord
The TdB is mainly used in France, the country where it has originated. Although there
are clear similarities between the TdB and the BSC, there is a considerable French
reluctance to the BSC. They state that the practice of the TdB has been far more
developed in 60 years than the BSC, which only exists for 10 years. Also, reluctance is
created by translation problems, caused by the French translation of BSC into Tableau de
Bord Prospectif, which likely creates confusion (Bourguignon et al., 2004).
The biggest drawback perhaps of the TdB is its undefined structure. Because of its lack of
predefined performance areas, there is a risk of managers implementing the TdB with a
set of performance indicators that is not balanced in terms of financial and non-financial,
lead and lag, strategic and operational, and related to effectiveness and efficiency.
The Performance Prism (PPR)
The Performance Prism (PPR), developed by Neely and Adams (2000), is a PMS
organised around five distinct but linked perspectives of performance: stakeholder
satisfaction, strategies, processes, capabilities, and stakeholder contributions (see also
Kennerley, Neely, 2002). These perspectives are visualised by a three dimensional model
in the shape of a prism, which can be seen in Figure 3.
The top and bottom facets are stakeholder satisfaction and stakeholder contribution
respectively and the three side facets are strategies, processes and capabilities. These five
distinct, but logically interlinked, perspectives on performance have been identified by
Neely and Adams (2000) together with five key questions for measurement design.
• Stakeholder Satisfaction. The key question in this perspective is: who are the key
stakeholders and what do they want and need? Those organisations aspiring to be
successful in the long term within today’s business environment have an
exceptionally clear picture of who their key stakeholders are and what they want.
This perspective is deliberately broader than the balanced scorecard view of
stakeholders, which encompasses only shareholders and customers (Neely et al.,
2001).
• Strategies. The key question here is: what strategies do we have to put in place to
satisfy the wants and needs of these key stakeholders? These organisations have
defined what strategies they will pursue to ensure that value is delivered to these
stakeholders. The Performance Prism’s strategy measures monitor whether goals
are being met and provide the data for informed executive decisions.
• Processes. What critical processes do we require if we are to execute these
strategies? Companies have to understand what processes the enterprise requires
if the strategies defined before are to be delivered.
• Capabilities. The main question in this perspective is: what capabilities do we
need to operate and enhance these processes? Capabilities are the combination of
people, practices, technology and infrastructure that together enable the execution
of the organisation’s business processes (both now and in the future). Companies
must consider which capabilities are needed to execute the processes defined
before. These are the fundamental building blocks of a corporation’s ability to
compete.
• Stakeholder contribution. What contributions do we require from our
stakeholders, if we are to maintain and develop these capabilities? This facet has
been included as a separate component since it recognises the fact that not only
The Performance Pyramid System (PPS) was one of the first “new” PMSs, developed by
Lynch and Cross (1991) during the Performance Measurement Revolution. In short, it is
Stakeholders other than customers and shareholders do not feature prominently in the
PPS. The user will have to make sure that measures at the different levels of the pyramid
relate to other principal stakeholders, such as suppliers in the case of purchasing
performance.
Productivity Measurement and Enhancement System (ProMES)
The productivity measurement and enhancement system (ProMES) was originally
developed by Pritchard (1990). ProMES is a participative development method for
performance management systems, designed to be a practical method of measuring
organisational productivity. In essence, ProMES is a formal, step-by-step process that
identifies organisational objectives, develops a measurement system to assess how well
the unit is meeting those objectives, and develops a feedback system which gives unit
personnel and managers information on how well the unit is performing (Pritchard et al.,
2002). As can be seen in Figure 4, the ProMES system is built up around the concept of
motivational force.
Figure 3 - ProMES
believes that changes in the amount of personal resources in the form of time and energy
(effort) devoted to different acts (tasks) over time will result in a change in anticipated
need satisfaction (Pritchard et al., 2002).
Pritchard et al. (2002) declare that the motivational force of a person is the result of his
acts, products, evaluations, outcomes and need satisfaction (see Figure 4). An act is the
“doing” of something, for example running or talking, which is characterized by
amplitude and direction. Products are the results of acts and often the person’s output.
When products are observed and evaluated, this results in evaluations where an evaluator
places the measured product on a good to bad evaluative continuum. After evaluations
are made, outcomes occur. These are intrinsic such as a feeling of accomplishment from
writing a good paper, or extrinsic such as forms of recognition. Outcomes get their
motivating power because of their ties to need satisfaction. Positive affect occurs when
needs are satisfied and negative affect occurs when needs are not satisfied. Between each
of these elements determining motivational force, relationships consist called
contingencies (see Figure 4). These contingencies can be linear as well as non-linear.
The ProMES system can be developed and implemented with the following seven step
process (Pritchard et al., 2002):
• Form a design team, composed of those who will be measured, one or two
supervisors, and one or two facilitators who familiar with ProMES.
• Identify objectives for the unit.
• For each objective, identify one of more quantitative measures, called indicators,
that measure how well these objectives are being met. Indicators have to be
largely under control of the people being measured.
• Define contingencies. A contingency is a function that defines how much of an
indicator is how good for the organisation.
• Design the feedback system.
• Give and respond to feedback.
• Monitor the project over time and adjust if needed.
Although ProMES is not as popular as the BSC, up to 2002, about 120 ProMES projects
have been executed in various types of organisations in nine different countries (Pritchard
et al., 2002). One of the most interesting features of ProMES is the bottom-up approach.
People are really involved in the design of the system which increases the acceptance of
the system. Another interesting feature of the system is the use of contingencies. By using
these contingencies, priorities for improvement can be set. Also, non-linearity can be
captured between an indicator and the amount of contribution that level of indicator
makes to the overall functioning of the organisation (Pritchard et al., 2002). However,
these contingencies make the system more difficult to develop and more effort has to be
put into explaining the system. Another disadvantage of ProMES is that the indicators do
not necessarily need to be balanced if the objectives are not balanced.
Because of its bottom-up approach, operational purchasing is really involved in the
design of the system. The risk of this bottom-up approach however is that vertical
consistency can not be taken for granted (Algera, De Haas, 2002), which could result in a
Business Unit’s PMS being not in line with the company’s PMS.
Organizations exist to achieve goals. Goals are only met when individual employees
efforts matches with policy of the organization and thus bringing out success and
effectiveness. The assessment of how successful employees have been at meeting their
individual goals therefore becomes a critical part of HRM and here comes Performance
Appraisal System.
Performance appraisal is an important component of the information and control system.
In today’s flexible organizations, performance evaluation provides an important way for
managers to clarify performance goals and standards and to enhance future individual
performance. Thus the purpose of performance appraisal is to improve the organization’s
performance through the enhanced performance of individuals.
Performance appraisal system can serve the following purposes if designed properly
Help each employee to understand more and more about his role and become clear about
his functions.
• Helps each employee to understand his own strengths and weaknesses with
respect to his role and functions of the company.
appraisal system more relevant. Several organizations have already started delinking
performance appraisal from salary increase.
(b) Making Objectives of Performance Appraisals Clear to All Employees
If performance appraisal should not directly be linked to salary increase the question then
arises, what should the objectives of performance appraisals be that could be realistically
achieved? Some suggestions:
• To do joint goal setting, and link the goals to the organizational objectives
• To provide role clarity by defining Key Result areas for Accounting.
• To establish a level of performance in the current job and seek ways of improving
it.
• To identify potential for development and to support the total process of planning
• To increase communication between the appraiser and the appraise.
• To identify factors that facilitate performance and other factors that hinder
performance.
• To help the employees identify and recognize their own strengths and
weaknesses. To make them assess their own competencies and how the same can
be multiplied and improved.
• To generate data about the employee for various decisions like transfers, rewards,
job-rotation, etc.
(c) Focus on Developmental Appraisals
Managers should develop part ownership in the employee's future. Any good appraisal
system should focus on developmental appraisal. Developmental appraisal mean that an
organization needs to develop not just isolated performance appraisal tool/system, but the
total frame work for the individuals development, improvement in job and level of
competence and preparing employees for future jobs. Thus, appraisal of people, which is
a part of the total HRD system, lies to be linked to long-term development activity and
carrier planning.
Organizations have to show vision for the future. Vision, strategies and objectives will
give rise to individual objectives and performance standards. The immediate rewards and
APPRAISAL ERRORS
None of the methods for appraising performance is absolutely valid or reliable; each
method has its own strengths and weakness. Let us try to understand the most commonly
occurring errors within performance appraisal methods.
1. Error of Central Tendency:
This refers to the tendency of not using extreme scale scores on the judgment scale; most
of the rates are clustered in the middle.
2. Error of Leniency:
This is caused by the tendency of the lenient ratter to put most of the rates on the higher
side of the scale, while a tough ratter places them on the lower side of the scale.
3. Halo Effect:
In other words, it is tendency to allow the assessment on one trait to influence assessment
on others. This usually arises when traits are unfamiliar, ill – defined and involved
personal reactions.
4. Error in Unreliability:
This error occurs when there is the existence of inconsistency in the evaluations of a
group of employees by two / more appraisers.
5. Personal Bias:
This error occurs when there exists a close relationship between appraiser and appraisee.
This tends to influence the evaluation. The scores could be on the higher when there
would be a bias on the side of the appraiser. Therefore, the scores given could tend to be
higher then what appraise deserves. This would give appraise an undue advantage for
appraisee during the times of promotions, pay rise etc. the same could happen vice versa
too if an appraiser does not share a good relationship with appraisee, he could tend to
give absolutely low scores for appraisee.
5. No Consultation
There would tend to be an error in the scores if the appraiser just goes on giving scores
without discussing with appraise. If the appraise would not be given his say in the matter,
the score will not reflect the actual capability of appraise.
6. Spill over Effect
This refers to allowing past performance appraisal ratings to unjustifiably influence
current ratings.
7. Status Effect:
It refers to over rating of employed in higher level job or jobs held in high esteem, and
under rating employees in lower level job at job held in low esteem.
Performance Appraisal
The Performance Appraisal System in the Organisation has been designed to evaluate
employee performance with a view to enhance individual contribution, greater job
responsibility and build an overall achievement oriented organisational culture
OBJECTIVES:
EVALUATION:
• The extent of development achieved by the employee during the period under
review.
• Evaluation of behavioural attributes attitudes and abilities.
• Evaluation of potential for assuming higher responsibilities.
• Time schedule followed for the completion of Annual Confidential Reports for
Executives:
a) Blank Forms will be sent by the Personnel 15th March
Department to the concerned head of the
Department / Branch.
b) Forms to be given by Head of the Department 25th March
to the concerned Executive for Self Appraisal.
c) Completion of Self Appraisal by concerned officer 10th April
and submission to Reporting Office.
d) Reporting Officer will complete his assessment 20th April
and submit to the Reviewing / countersigning
officer.
e) Reviewing/ Countersigning Officer will countersign 30th April
the Annual Confidential Reports /PAF with or
without his remarks and send to Accepting
Authority.
f) Annual Confidential Report to be returned to 10th May
Personnel Department of Region / Corporate Office
after perusal / remarks of Accepting Authority.
a) Personnel Department of Regional Office will 20th May
send the Annual Confidential Reports of all
Executives to Corporate Office.
Accepting Authority.
The Reports in respect of Executives in the level of E-5 is submitted to concern
Director wherever he is not the Reviewing / Accepting Authority.
The Reports in respect of Executives in the level of E-6 and above will be put up
to the Chief Managing Director.
• In the event of the overall assessment being not satisfactory or carrying
some adverse
remarks, a communication will need to be issued to the concerned after the report has been
accepted by the concerned authority. The adverse remark will be conveyed to the
concerned employee by the personnel Department and this activity shall be completed by
30th June.
RESEARCH
METHODOLOGY
Sampling:
The total sample size for this project was 100 employees at Jindal Brothers.
The information collected through above methods has been tabulated, analyzed and
interpreted. Finally an overall assessment of the contribution of top management,
supervisory staff has been made towards improving the effectiveness of the organization.
TYPES OF RESEARCH
Research methodology is a way to systematic solve the Research Problem. It is a
procedure, which is followed step by step to solve a particular research problem.
Explorative Research:
To gain familiarity with phenomenon or to achieve an insight into it.
Descriptive Research:
To poetry accurately the characteristics of the particular individual situation or a group .
Diagnostic Research:
To determine the frequency with which something occurs or with which it is associated
with something else.
SAMPLING TECHNIQUE
The sampling technique adopted for the study is non-probability Random sampling
technique according to the convenience of the researcher.
A questionnaire was administered to employees of GAIL Infohub of different
Departments like Finance Department ,HR Department ,G.P.C.T. Department , O & M
Department, Business Information System Department and Gailtel Department.
SAMPLE SIZE
Data is collected using a sample of 60 employees of GAIL Infohub.
SAMPLE DESCRIPTION
The sample mainly consists of data from the primary sources that are utilized for the
purpose of this study. This is done by means of administrating questionnaire to
employees in different Departments. Secondary data like company journals, newsletters,
records etc. were also relied on for retrieving further information.
INSTRUMENTATION TECHNIQUE
Questionnaire
ANALYSIS AND
INTERPRETATION
10
9
8
7
6
5 S0-S3
4 S4-S7
3 E0-E3
2
1 E4-E9
0
Strongly Agree Neither Disagree Strongly
Agree Agree nor Disagree
Disagree
Analysis:
10% staff members agree that current system of appraisal in GAIL (India) is time
consuming.
65% staff members have no comments that current system of appraisal in GAIL (India) is
time consuming.
25% staff members disagree that current system of appraisal in GAIL (India) is time
consuming.
20% members agree that current system of appraisal in GAIL (India) is time consuming.
37.5% executive members have no comments that current system of appraisal in GAIL
(India) is time consuming.
42.5% executive members disagree that current system of appraisal in GAIL (India) is
time consuming.
Table2: The current process can be simplified by following same steps in Probation
Approval and Annual Confidential Report.
16
14
12
10
8 S0-S3
6 S4-S7
4 E0-E3
2
E4-E9
0
Strongly Agree Neither Disagree Strongly
Agree Agree nor Disagree
Disagree
Analysis:
30% staff members agree that current process can be simplified by following same steps
in Probation Approval and Annual Confidential Report.
60% staff members have no comments that current process can be simplified by
following same steps in Probation Approval and Annual Confidential Report.
10% staff members disagree that current process can be simplified by following same
steps in Probation Approval and Annual Confidential Report.
50% executive members agree that current process can be simplified by following same
steps in Probation Approval and Annual Confidential Report.
45% executive members have no comments that current process can be simplified by
following same steps in Probation Approval and Annual Confidential Report.
5% executive members disagree that current process can be simplified by following same
steps in Probation Approval and Annual Confidential Report.
Table3: Objective setting will complicate the process further and will not add value
to performance Assessment system in GAIL.
10
9
8
7
6
5 S0-S3
4 S4-S7
3
E0-E3
2
1 E4-E9
0
Strongly Agree Neither Disagree Strongly
Agree Agree nor Disagree
Disagree
Analysis:
25% staff members agrees that Objective setting will complicate the process further and
will not add value to performance Assessment system in GAIL
55% staff members have no comments that Objective setting will complicate the process
further and will not add value to performance Assessment system in GAIL
20% staff members disagree that Objective setting will complicate the process further and
will not add value to performance Assessment system in GAIL
42.5% executive members agree that Objective setting will complicate the process further
and will not add value to performance Assessment system in GAIL
15% executive members have no comments that Objective setting will complicate the
process further and will not add value to performance Assessment system in GAIL
42.5% executive members disagree that Objective setting will complicate the process
further and will not add value to performance Assessment system in GAIL
Disagree
S0-S3 1 5 6 1 1
S4-S7 2 4 0 0 0
E0-E3 5 15 2 0 0
E4-E9 6 6 6 0 0
16
14
12
10
8 S0-S3
6 S4-S7
4 E0-E3
2 E4-E9
0
Strongly Agree Neither Disagree Strongly
Agree Agree nor Disagree
Disagree
Analysis:
60% staff members agree that Self Assessment is a useful tool/step in the overall
Performance.
30% staff members have no comments that Self Assessment is a useful tool/step in the
overall Performance.
10% staff members disagree that Self Assessment is a useful tool/step in the overall
Performance.
80% executive members agree that Self Assessment is a useful tool/step in the overall
Performance.
20% executive members have no comments that Self Assessment is a useful tool/step in
the overall Performance.
0% executive members disagree that Self Assessment is a useful tool/step in the overall
Performance.
12
10
8 S0-S3
6 S4-S7
4 E0-E3
2 E4-E9
0
Strongly Agree Neither Disagree Strongly
Agree Agree nor Disagree
Disagree
Analysis:
15% staff members agrees that Annual Confidential report has no scope for bias
45% staff members have no comments that Annual Confidential report has no scope for
bias
40% staff members disagree that Annual Confidential report has no scope for bias
12.5% executive members agree that Annual Confidential report has no scope for bias
42.5% executive members have no comments that Annual Confidential report has no
scope for bias
45% executive members disagree that Annual Confidential report has no scope for bias
10
6
S0-S3
4 S4-S7
2 E0-E3
E4-E9
0
Strongly Agree Neither Disagree Strongly
Agree Agree nor Disagree
Disagree
Gitaratan International Business School 87
Performance Appraisal 008191039909
Analysis:
50% staff members agree that there is a transparent linkage between Performance
Management System in GAIL & other HR processes like promotion & transfer.
40% staff members have no comments that there is a transparent linkage between
Performance Management System in GAIL & other HR processes like promotion &
transfer.
10% staff members disagree that there is a transparent linkage between Performance
Management System in GAIL & other HR processes like promotion & transfer.
37.5% executive members agree that there is a transparent linkage between Performance
Management System in GAIL & other HR processes like promotion & transfer.
42.5% executive members have no comments that there is a transparent linkage between
Performance Management System in GAIL & other HR processes like promotion &
transfer.
20% executive members disagree that there is a transparent linkage between Performance
Management System in GAIL & other HR processes like promotion & transfer
Table 7: Your training needs are identified on the basis of your annual confidential
report.
16
14
12
10
8 S0-S3
6 S4-S7
4 E0-E3
2 E4-E9
0
Strongly Agree Neither Disagree Strongly
Agree Agree nor Disagree
Disagree
Analysis:
30% staff members agree that training needs are identified on the basis of your annual
confidential report.
40% staff members have no comments that training needs are identified on the basis of
your annual confidential report.
30% staff members disagree that training needs are identified on the basis of your annual
confidential report.
75% executive members agree that training needs are identified on the basis of your
annual confidential report.
12.5% executive members have no comments that training needs are identified on the
basis of your annual confidential report.
12.5% executive members disagree that training needs are identified on the basis of your
annual confidential report
Table 8: Personal Development Plans (PDP) would be helpful in coaching for better
performance.
10
9
8
7
6
5 S0-S3
4 S4-S7
3
E0-E3
2
1 E4-E9
0
Strongly Agre e Neithe r Disagree Strongly
Agree Agre e nor Disagre e
Disagree
Analysis:
45% staff members agree that Personal Development Plans (PDP) would be helpful in
coaching for better performance.
50% staff members have no comments that Personal Development Plans (PDP) would be
helpful in coaching for better performance.
5% staff members disagree that Personal Development Plans (PDP) would be helpful in
coaching for better performance.
85% executive members agree that Personal Development Plans (PDP) would be helpful
in coaching for better performance.
15% executive members have no comments that Personal Development Plans (PDP)
would be helpful in coaching for better performance.
0% executive members disagree that Personal Development Plans (PDP) would be
helpful in coaching for better performance.
Table 9: Appraisal should essentially have a step of meeting with the reporting
officer, with the purpose of giving feedback on performance.
20
18
16
14
12
10 S0-S3
8 S4-S7
6
E0-E3
4
2 E4-E9
0
Strongly Agree Neither Disagree Strongly
Agree Agree nor Disagre e
Disagree
Analysis:
60% staff members agree that Appraisal should essentially have a step of meeting with
the reporting officer, with the purpose of giving feedback on performance
25% staff members have no comments that Appraisal should essentially have a step of
meeting with the reporting officer, with the purpose of giving feedback on performance
15% staff members disagree that Appraisal should essentially have a step of meeting with
the reporting officer, with the purpose of giving feedback on performance
100% executive members agree that Appraisal should essentially have a step of meeting
with the reporting officer, with the purpose of giving feedback on performance
0% executive members have no comments that Appraisal should essentially have a step
of meeting with the reporting officer, with the purpose of giving feedback on
performance.
0% executive members disagree that Appraisal should essentially have a step of meeting
with the reporting officer, with the purpose of giving feedback on performance.
E4-E9 2 9 2 0 0
20
18
16
14
12
10 S0-S3
8 S4-S7
6 E0-E3
4
2 E4-E9
0
Strongly Agree Neither Disagree Strongly
Agree Agree nor Disagree
Disagree
Analysis:
50% staff members agree that there should be a dedicated cell focused on improving as
well as implementing the performance appraisal process centrally for all work centers
40% staff members have no comments that there should be a dedicated cell focused on
improving as well as implementing the performance appraisal process centrally for all
work centers
10% staff members disagree that there should be a dedicated cell focused on improving
as well as implementing the performance appraisal process centrally for all work centers
85% executive members agree that there should be a dedicated cell focused on improving
as well as implementing the performance appraisal process centrally for all work centers
15% executive members have no comments that there should be a dedicated cell focused
on improving as well as implementing the performance appraisal process centrally for all
work centers
0% executive members disagree that there should be a dedicated cell focused on
improving as well as implementing the performance appraisal process centrally for all
work centers
Table 11: Annual confidential report in GAIL is on the basis of pre defined
competencies and not on actual work done.
12
10
8
6 S0-S3
S4-S7
4
E0-E3
2
E4-E9
0
Strongly Agree Neither Disagree Strongly
Agree Agree nor Disagree
Disagree
Analysis:
45% staff members agree that Annual confidential report in GAIL is on the basis of pre
defined competencies and not on actual work done.
45% staff members have no comments that Annual confidential report in GAIL is on the
basis of pre defined competencies and not on actual work done.
10% staff members disagree that Annual confidential report in GAIL is on the basis of
pre defined competencies and not on actual work done.
45% executive members agree that Annual confidential report in GAIL is on the basis of
pre defined competencies and not on actual work done.
37.5% executive members have no comments that Annual confidential report in GAIL is
on the basis of pre defined competencies and not on actual work done.
17.5% executive members disagree that Annual confidential report in GAIL is on the
basis of pre defined competencies and not on actual work done.
Table 12: Annual confidential report in GAIL is on the basis of pre defined
competencies and not on actual work done.
6
5
4
3 S0-S3
S4-S7
2
E0-E3
1
E4-E9
0
Strongly Agree Neither Disagree Strongly
Agree Agree nor Disagree
Disagree
Analysis:
35% staff members agree that Annual confidential report in GAIL is on the basis of pre
defined competencies and not on actual work done.
50% staff members have no comments that Annual confidential report in GAIL is on the
basis of pre defined competencies and not on actual work done.
15% staff members disagree that Annual confidential report in GAIL is on the basis of
pre defined competencies and not on actual work done.
42.5% executive members agree that Annual confidential report in GAIL is on the basis
of pre defined competencies and not on actual work done.
42.5% executive members have no comments that Annual confidential report in GAIL is
on the basis of pre defined competencies and not on actual work done.
15% executive members disagree that Annual confidential report in GAIL is on the basis
of pre defined competencies and not on actual work done.
Table 13: You seldom escalate your disagreement on Annual confidential report
rating provided by your reporting officer to the level of reviewing /accepting officer.
12
10
8
6 S0-S3
S4-S7
4
E0-E3
2
E4-E9
0
Strongly Agree Neither Disagree Strongly
Agree Agree nor Disagree
Disagree
Analysis:
15% staff members agree that You seldom escalate your disagreement on Annual
confidential report rating provided by your reporting officer to the level of reviewing
/accepting officer
65% staff members have no comments that You seldom escalate your disagreement on
Annual confidential report rating provided by your reporting officer to the level of
reviewing /accepting officer
20% staff members disagree that You seldom escalate your disagreement on Annual
confidential report rating provided by your reporting officer to the level of reviewing
/accepting officer.
50% executive members agree that You seldom escalate your disagreement on Annual
confidential report rating provided by your reporting officer to the level of reviewing
/accepting officer
37.5% executive members have no comments that You seldom escalate your
disagreement on Annual confidential report rating provided by your reporting officer to
the level of reviewing /accepting officer
12.5% executive members disagree that You seldom escalate your disagreement on
Annual confidential report rating provided by your reporting officer to the level of
reviewing /accepting officer
Table 14: Once the process of Performance Appraisal is complete the form are
simply filed away.
16
14
12
10
8 S0-S3
6 S4-S7
4 E0-E3
2
E4-E9
0
Strongly Agree Neither Disagree Strongly
Agree Agree nor Disagree
Disagree
Analysis:
25% staff members agree that once the process of Performance Appraisal is complete the
forms are simply filed away.
45% staff members have no comments that once the process of Performance Appraisal is
complete the forms are simply filed away.
30% staff members disagree that once the process of Performance Appraisal is complete
the form are simply filed away.
62.5% executive members agree that once the process of Performance Appraisal is
complete the forms are simply filed away.
20% executive members have no comments that Once the process of Performance
Appraisal is complete the form are simply filed away.
17.5% executive members disagree that once the process of Performance Appraisal is
complete the form are simply filed away.
Table 15: The system of 360 degree appraisal should be implemented in GAIL, by
which you can appraise your superior as well.
20
18
16
14
12
10 S0-S3
8 S4-S7
6
4 E0-E3
2 E4-E9
0
Strongly Agree Neither Disagree Strongly
Agree Agree nor Disagree
Disagree
Analysis:
35% staff members agrees that the system of 360 degree appraisal should be
implemented in GAIL, by which you can appraise your superior as well.
55% staff members have no comments that the system of 360 degree appraisal should be
implemented in GAIL, by which you can appraise your superior as well.
10% staff members disagree that the system of 360 degree appraisal should be
implemented in GAIL, by which you can appraise your superior as well.
85% executive members agree that the system of 360 degree appraisal should be
implemented in GAIL, by which you can appraise your superior as well.
12.5% executive members have no comments that the system of 360 degree appraisal
should be implemented in GAIL, by which you can appraise your superior as well.
2.5% executive members disagree that the system of 360 degree appraisal should be
implemented in GAIL, by which you can appraise your superior as well.
9
8
7
6
5 S0-S3
4 S4-S7
3
2 E0-E3
1 E4-E9
0
Strongly Agree Ne ither Disagree Strongly
Agree Agree nor Disagree
Disagree
Analysis:
50% staff members agrees that Performance appraisal process in GAIL is totally
transparent
30% staff members have no comments that Performance appraisal process in GAIL is
totally transparent
20% staff members disagree that Performance appraisal process in GAIL is totally
transparent
45% executive members agree that Performance appraisal process in GAIL is totally
transparent
35% executive members have no comments that Performance appraisal process in GAIL
is totally transparent
20% executive members disagree that Performance appraisal process in GAIL is totally
transparent
Table 17: Annual Confidential Report does not enable the potential assessment of
an employee.
10
8
6
S0-S3
4 S4-S7
2 E0-E3
0 E4-E9
Strongly Agree Neither Disagree Strongly
Agree Agree nor Disagree
Disagree
Analysis:
50% staff members agrees that Annual Confidential Report does not enable the potential
assessment of an employee.
30% staff members have no comments that Annual Confidential Report does not enable
the potential assessment of an employee.
20% staff members disagree that Annual Confidential Report does not enable the
potential assessment of an employee.
57.5% executive members agree that Annual Confidential Report does not enable the
potential assessment of an employee.
35% executive members have no comments that Annual Confidential Report does not
enable the potential assessment of an employee.
7.5% executive members disagree that Annual Confidential Report does not enable the
potential assessment of an employee.
18
16
14
12
10 S0-S3
8
S4-S7
6
4 E0-E3
2 E4-E9
0
Strongly Agree Neither Disagree Strongly
Agree Agree nor Disagree
Disagree
Analysis:
40% staff members agrees that Appraisal rating should be linked to pay.
50% staff members have no comments that Appraisal rating should be linked to pay.
10% staff members disagree that Appraisal rating should be linked to pay.
75% executive members agree that Appraisal rating should be linked to pay.
15% executive members have no comments that Appraisal rating should be linked to
pay.
10% executive members disagree that Appraisal rating should be linked to pay.
Table 19: Probation Appraisal process after Promotion is merely customary and a
time consuming exercise with no significant outcome.
Levels Strongly Agree Neither Disagree Strongly
Agree Agree nor Disagree
Disagree
S0-S3 0 5 5 1 0
S4-S7 1 3 4 1 0
E0-E3 2 5 15 3 3
E4-E9 1 2 7 2 0
16
14
12
10
8 S0-S3
6 S4-S7
4 E0-E3
2
E4-E9
0
Strongly Agree Neither Disagree Strongly
Agree Agree nor Disagree
Disagree
Analysis:
45% staff members agrees that Probation Appraisal process after Promotion is merely
customary and a time consuming exercise with no significant outcome
45% staff members have no comments that Probation Appraisal process after Promotion
is merely customary and a time consuming exercise with no significant outcome
10% staff members disagree that Probation Appraisal process after Promotion is merely
customary and a time consuming exercise with no significant outcome
25% executive members agree that Probation Appraisal process after Promotion is
merely customary and a time consuming exercise with no significant outcome
55% executive members have no comments that Probation Appraisal process after
Promotion is merely customary and a time consuming exercise with no significant
outcome
20% executive members disagree that Probation Appraisal process after Promotion is
merely customary and a time consuming exercise with no significant outcome
Table 20: By making changes to the Annual Confidential Report in GAIL we can
impact employee retention positively.
14
12
10
8 S0-S3
6 S4-S7
4
E0-E3
2
E4-E9
0
Strongly Agree Neither Disagree Strongly
Agree Agree nor Disagree
Disagree
Analysis:
35% staff members agrees that By making changes to the Annual Confidential Report in
GAIL we can impact employee retention positively
60% staff members have no comments that By making changes to the Annual
Confidential Report in GAIL we can impact employee retention positively
5% staff members disagree that By making changes to the Annual Confidential Report in
GAIL we can impact employee retention positively
57.5% executive members agree that By making changes to the Annual Confidential
Report in GAIL we can impact employee retention positively
42.5% executive members have no comments that By making changes to the Annual
Confidential Report in GAIL we can impact employee retention positive
MAJOR FINDINGS
From the survey results its evident that both the appraisee’s and appraisers expectation
from Performance appraisal system are almost same i.e. “Determination of Promotion or
Transfer” and “Salary Administration and Benefits”. Hence a single performance
appraisal system can satisfy needs of both the Appraiser and appraisee. Therefore the
Performance appraisal program would be designed in such a way that the appraiser would
be able to analyze the contribution of the employee to the organization periodically and
all the employees who have been performing well would be rewarded suitably either by
an increase in the salary or a promotion. Through this the appraiser can also motivate the
employees who felt that they had no growth in the organization and serves the purpose of
employee development. Thus performance appraisals can be used as a significant tool for
career planning.
Analyzing ones own strengths and weaknesses is the best way of identifying the
potentials available, rather than the other person telling. Self-appraisal is a tool to analyze
oneself. One of the most important findings was that almost all the employees are
satisfied with their self-rating to be a part of performance appraisal program carried out
by the GAIL.
The results also indicate that the there is no communication of top management plans and
business goal to the appraisee. The appraisers on the other hand feel that the goals and
plans have been clearly communicated to the appraisees. Communication is very essential
for any system to function efficiently. Therefore the appraisers should look into this
matter and see to it that the goals and plans are communicated effectively.
The findings suggest that for success of Appraisal system the credibility of
appraiser is of utmost importance.
As per the Appraiser, a poorly conducted appraisal system would lead to
• demotivation and ineffective team work which will result in inefficient
• functioning and low productivity in the organization. Therefore, if at all they
feel there is dissatisfaction among the appraisee’s they should motivate
them. Achievement, recognition, involvement, job satisfaction and
CONCLUSION
Performance appraisal is the process of reviewing employee performance vis-à-vis the set
expectations in a realistic manner, documenting the review, and delivering the review
verbally in a face-to-face meeting, to raise performance standards year over year through
honest and constructive feedback. In the process management expects to reinforce the
employee’s strengths, identify improvement areas so that one can work on them and also
set stretched goals for the coming year.
Effective performance management requires a good deal of face-to-face supervisor-
employee interaction. By knowing the subordinates, a supervisor can steer them onto a
path of greater productivity and optimized output. It is one of the most significant and
indispensable tool for an organization as it helps in getting to know the people, who work
for them, provides information, which helps in taking important decisions for the
development of an individual and the organization.
BIBLIOGRAPHY
ANNEXURE
Annexure -A
Questionnaire on Performance Management System
in GAIL (India) Limited
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Strongly Agree Neither Agree Disagree Strong
Agree nor disagree disagree
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