INDUSTRY SCENARIO

The Aditya Birla Group is India's first truly multinational corporation. Global in vision rooted in Indian value, the group is driven by a performance ethic pegged on value creation for its multiple stakeholder. A US $6 billion conglomerate, with a market capitalization of US $5 billion, it is endorse by an extraordinary forced of 72,000 employees belonging to over 20 different nationalities. Aditya Birla Group has 66 states-of-the-Arts manufacturing units and sectoral service span India, Thailand, Indonesia, Malaysia, Philippines, Egypt, Canada, Australia and China. A premium conglomerate, the Aditya Birla Group is a dominant player in all the sectors in which it operates. Among these are viscose staple fiber, non-ferrous metals, cement, viscose, filament yarn, branded apparel, carbon black, chemical, fertilizer, sponge iron, insulator and financial services. It is: The world no. 1 in viscose staple fiber The world largest single location palm oil production Asia's largest integrated Aluminum producer A globally competitive, fast growing copper producer The world's third largest producer of insulators Globally the 4th largest producer of carbon black The world's 8th largest producer of cement and the largest in a single geography

India's premier branded garments player Among India's most energy efficient private sector fertilizer plants India's second largest producer of viscose filament yarn India's second largest private sector insurance company One of the India's leading asset management company

The group has also made successful forays into the IT (information technology) and BPO (business process outsourcing) sectors. 1

BEYOND BUSINESS
The Aditya Birla Group believes in the trusteeship concept of management. It is the specialty of the group that is profits are used into meaningful welfare-driven initiative. These all activities are carried out under the Aditya Birla Center for Community Initiative and Rural Development.

INDUSTRIAL PORFOLIO

Aditya Cement, it was established in March 1995, which is one of the latest cement division of Grasim Industries Ltd. It is a record o Aditya Cement that they produce 1 million tones per annum cement unit. This record is completed in 22 months from the beginning. This plant is located at Shambhupura (Adityapuram) in Chittorgharh district of Rajasthan. It is 18 kms far from Chittorgharh railway station. This plant has 465 manpower for the manufacturing of cement. In Aditya Cement there are lot many modern equipments which are supplied by the world major and renowned Krupp Polusius of Germany and quality control systems by Gamma Matrix of United States Of America. This plant has already certified by ISO-9002 and ISO-14001 Certificates. The plant has proximity to limestone deposits and has an on- line Cross Belt Analyzer to ensure limestone of consistent quality. Its 82% of power requirements are met through captive source.

World Class Eco-Friendly Plant-Aditya Cement

The specialty of Aditya Cement Plant is, it's a World Class Eco-Friendly Plant. Aditya Cement has adopted the most modern and latest dry process precalcination technology with sophisticated control instrument from internationally renowned firm. The entire manufacturing process is made 3

automatic, using highly sophisticated sate-of-the- arts technology, having on line process computer with color VDU control panels. Aditya Cement took the lead in the country for energy conservation by installing High Pressure Roller Press for raw material and cement grinding and vertical roller mills imported from the world. This plant has also believed in the importance of conservation of environment. By this policy of awareness of environment they installed high efficiency Electrostatic Precipitators, Bag House and Bag filters to keep the environment free from pollution.

ORGANIZATION STUCTURE
Aditya Cement is a Unit of Grasim Industries limited a flagship company of the Aditya Birla Group rank among India's largest private sector companies, with a turn over of Rs.5, 213.3 corers in 2003-2004. BOARD OF DIRECTORS Mr. Kumarmanglam Birla, Chairman Mrs. Rajshree Birla Mr. M.L. Birla Mr. B.V. Bhargava Mr. R.C. Bhargava Mr. Y.C. Gupta Mr. Cyril Shroff Mr. S.G. Subhramanyam Mr. Shailendra Jain BUSINESS HEADS Mr. Shailendra Jain, Viscous Staple Fiber Mr. Sourabh Mishra, Cement Mr. Ravi Kastiya, Sponge Iron Mr. S.K. Saboo, Textile Spinning Mr. Vikram Rao, Textile Fabric Mr. K.K. Maheshwari, Chemicals Mr. D.D. Rathi, Chief financial officer, Group Executive president and CFO

IMPORTANCE OF PERFORMANCE APPRAISAL SYSTEM Performance Appraisal is method of evaluation the behaviour of employees in the work spot, normally including both the quantitative and qualitative aspects of performance. It is a systematic and objective way of evaluating both work-related behaviour and potential of employees. It is a process that involves determining communicating to an employee how he or she is performing the job and ideally establishing a plan of improvement. PERFORMANCE APPRAISAL PROCESS The term appraisal means evaluation of the performance of employees. Evaluation of employees performance or potential provide data about past, present and expected performance so that appropriate decisions can be made. Systematic, formalized appraisals of an employee are likely to occurs at regular intervals throughout the history of ones employment in an organization performance Appraisal assists mangers in making decisions about differential treatment to be accorded to individual employees in salary administration, promotion, transfer, performance planning, training, counseling, discipline an other matters to enhance the attainment of organizational goals. Performance appraisal is a process of evaluating employee performance in order to guide and develop the employee's potential. In many extension organizations, which are government departments, the performance appraisal is nothing more than a confidential judgment of work done and a character report used to facilitate disciplinary action or promotion. Performance appraisal is planned, developed and implemented through a series of steps: Establish performance standard Appraisal system requires performance standards, which serve as benchmarks against which performance is measured.

Communicated the standard Performance Appraisal involves at least two parts- the appraiser who does the appraisal and the appraisee whose performance being evaluated. Both are expected to do certain things. The appraiser should prepare job description clearly; help appraisee set his set his goals and targets; analyse results objectively; offer coaching and guidance to appraisee whenever require an reward good results. Measure actual performance After the performance standards are set and accepted, the next steps are to measure actual performance. This requires the use of dependable performance measures, the rating used to evaluate performance. Performance measures, to be helpful must be easy to use, be reliable and report on the critical behaviours that determine performance. Four common sources of information, which are generally used by manager regarding how to measure performance; Personal observation, statistical reports, oral report and written report. Compare actual performance with standard and discuss the appraisal Actual performance may be better than expected and sometimes it may go off the track. Whatever be the consequence, there is a way to communicate and discus the final outcome. Taking corrective action, if necessary Corrective action is of two types. The one which puts out the fires immediately and other one which at the root of the problem permanently. Immediately and other one which strike at the root of the problem permanently.

METHODS OF PERFORMANCE APPRAISAL

The methods of performance appraisal may be classified into three categories, as shown in figure; Performance Appraisal Techniques

Individual evaluation methods methods

multiple-person evaluating methods

other

1.confidencial report performance test 2.eassy evaluation technique 3.critical incidents 4.cheak list 5.graphical rating scale 6.behavioiurally anchored 7.rating scales 8.forced choice method 9.MBO forced distribution paired comparison

ranking field review

PERFORMANCE APPRAISAL IN ADITYA CEMENT

Performance appraisal is the systematic, orderly and objectively procedure in order to evaluate current performance of an individual. The main objective of performance appraisal is to acquaint the appraiser with the appraisal system vis-vis appraisal forms, rating scale, appraisal factor and the basic guideline while appraising performance. It aims at developing the Human resources through identifying their strength and weaknesses. o Appraisal System according to Aditya Cement

Performance Appraisal System is a method of evaluating the behavior of employees in the work spot, normally including both the quantitative and qualitatitive aspect of job performance. It is a systematically and objective way of evaluating both work-related behavior and potential of employees. It is process that involve determine and communication to and employee how he/she is performing the job and ideally, establishing a plan of improvement In other words performance appraisal system is a systematically, orderly and objective method of evaluating current performance of the employee in an organization. o Objectives of Performance Appraisal in Aditya Cement Performance Appraisal could be taken either for evaluating the performance of employee or for developing them. There are two types of evaluation that are telling the employee where he stand means what is the current position of employees in the organization and using the data for personal decision concerning pay, promotion, transfer etc. So the Performance Appraisal is aimed at achieving: The main objective behind appraisal is it create and to nourish a performance oriented and learning culture. It provides a sense of dedication and challenges to employees and their teams through.

 Role clarity is important point of objectives that how an appraisee know about his role in organization. It enables the appraisee plan and reviews his performance through a participatory process. Appraisal system establishes a linkage between performance and reward. According to this objective it improve or he/ she is in very good performance so that naturally he/she will get reward. And once get reward than definitely he will try to improve his performance as best as possible. Appraisal system establishes or facilitates a planned process of management growth and development It aims to establish an organizational environment where superior performance permeates every aspect or the Aditya Birla Group employee's professional life. It creates a culture that empires and empower every individual to contribute his/her best in building the business and the organization through self-development and provide opportunities to recognize and develop achievers. Performance Appraisal also develops and optimizes Human Resources. Performance Appraisal is biased on the belief that clarity of goals and objective setting through a participatory process provides the foundation for " Superior Performance". It believes that every individual is capable of setting objectives and assessing one own performance. It underlines introspection as a means of growth. o Appraisal Process in Aditya Cement The Performance Appraisal process of Aditya Cement is consists of a series of steps. Each step focuses a specific trait through which an individuals performance is appraised.

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These Appraisals are done in the systematically, through a well defined and developed appraisal form. In these appraisal forms, the Performance of an appraisee is assessed based upon is task and achievement status mentioned by the appraisee by his immediate superior (i.e. Appraiser) and subsequently it is reviewed by his superiors superior (i.e. Reviewer). Basically three different types of appraisal forms are being used in the Aditya Cement according to different grades of employee. The Appraiser who is immediate supervisor of the person being appraised appraises all the apraisees. The appraisal is done against various factors and the appraiser indicates performance rating, which can be reviewed by the reviewer. In order to review the focus of appraisee's time attention, seriousness and use of resource with the organizational / business needs bi-annual reviews are conduction to assess the performance of the managerial cadre imply. For the first review of appraisee, the reviewer and an appraiser give attention to on the work performance of the month of April to September. This process is completed on the month of October. After that second review is take place in the March. This review is done on the basis of goals, which are completed during the period of October to March. o Performance Review process : The most important part of review is a reviewer who is the immediate supervisor of the appraiser further examines performance appraisal of all employees. The reviewer carefully scrutinizes the Appraisal form. If felt necessary, the Reviewer can revise the appraisal rating with the concurrent or involvement of the appraiser. The reviewer should specially ask for written justifications by appraise in the appraisal form that is called Task Status.

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APPRAISAL PROCESS IN ADITYA CEMENT A DIAGRAMETIC VIEW

HRD puts up from to unit Head for counter signing

HRD sends relevant PADP/MPDP form to Functional Head

HRD incorporate change after review

Functional Heads hands over form to respective Appraisers

Review of specific cases by reviewer in consultation with appraisee HRD collect appraisal rating and sends back form of specific cases for review to reviewer

Appraiser hands over form to appraisal of managerial cadre for self-Appraisal

After Goal setting and self appraisal by the appraisee it goes back to the Appraiser

Reviewer sends filled in appraisal forms to HRD

Appraiser assessed the performance of managerial and nonmanagerial cardre employees

Appraiser submits the completed form to reviewer

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APPRAISER PROCESS OF ADITYA CEMENT

To emphasize the developmental of appraisal, it has been named "Performance Appraisal and Development plan". Presently three different Performance Appraisal and Development Plan forms are in vogue to cadre to the appraisal needs of different level of employee. These are the forms, which are used in Aditya Cement for the better Performance Appraisal.(Appen:1)

COMMON APPRAISAL
MANAGERIAL PERFORMANMCE AND DEVELOPMENT PLAN (MPDP)
The common appraisal system - Managerial Performance and Development Plan - for the Assistant Managers and above of the Group is implement in Aditya Cement as well. The system has gone through several refinements based on the feedback received from some of their Directors and other senior managers. The objective of the new common appraisal system is to make it more goal-focused and to standardize it right across the Group. Aditya Cement has some trends for this process. These trends are towards separate system for each cluster of objectives. It is business-linked appraisal. This system is Participative and discussion biased system. It focused on results and processes. In Aditya Cement it is an annual exercise and linked with unit or group objectives. It is a concept of self-appraisal and review of performance. But this process have different standard, rating scales and systems. Specialty of this process is that it is fully confidential system with development orientation. MPDP have some different names like- a performance plan, Performance review, Potential assessment, and a development plan. MPDP have some unique features. It has a concept of self-appraisal process and participatory approach with supportive work culture. Main feature of this process

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is that it is a transparent system. In Aditya Cement a lot of attention is given on performance planning and development because it is mid-course review with corrective action.

MAIN FEATURES OF MPDP

This process is mid-course review and it also takes corrective action for completing the goals, which was mentioned lastly. It facilitates the process of development that are, executive involvement through self-appraisal and introspection. This process has a different way of rating. They have 4 profiles that are exceptional achiever, high achiever, consistent contributor and performer. Appraisee, Appraiser and reviewer are responsible for the process because they have to do discussion before going to fill the form of appraisal. Appriasee is the executive and one whose performance is to be assessed over one entire cycle. Appraiser is the manager, one under whom the Appraise has closely worked during the appraisal cycle. The Reviewer who is the appraiser's superior does the other part; he is one who has worked closely with the appraiser and oversees and the department or the function where the appraisee works. The MPDP pursues the following objectives: To create and to foster a performance oriented and learning culture To provide a sense of direction and challenge to managers and their teams through role clarity To enable the appraiser to plan and review his performance through a participatory process To establish linkage between performance and reward To facilitate a planned process of managerial growth and development.

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The Managerial Performance & Development Plan is meant to be a development tool in the Aditya Birla Group as whole. It aims to establish an organizational environment where superior performance permeates every aspect of the Aditya Birla Group's Managers' professional life. It seeks to create a culture that inspires & empowers every individual to contribute his/her best in building the business and the organization through self-development. It seeks to create an environment, which provides opportunities to recognize and develop achievers. It believes in the development and optimization of human resources. It is based on the premise that people at all levels are capable of contributing to the overall team performance.

THE
Post appraisal disscussion

Setting KPS's for the APPRAISAL PROCESS year ahead (A1) Setting agreed objectives A2, A3

Appraisers recommendation (B4)

First 6-month review of objectives (A2)

Potential assessment (B3) Achievement profile reviewers' comments (B2)

Personal & career develop -ment (B1)

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THE APPRAISAL FORM - A GUIDE

The purpose of this section is to take you on guided tour of the appraisal form. The first page of the form captures a brief picture of the Appraisee's personal details such as name, designation, qualifications and work experience etc. Unit HRD will be responsible to furnish this data in each appraisal form. A1 Key Performance Areas (KPA's) (To be filled by the Appraisee after discussions with his Appraiser) A KPA is a thrust area or the area of importance dictated by the needs of a business. It is an area of focus that calls for Appraisees time, attention and resource. In short, it summarizes the Appraisees job profile and may change in focus from year to year with the change in business context or organizational goals. At the beginning of the year, the Appraiser shares the organizational and functional goals to help the Appraisee prepare his list of KPAs for the year. KPA's are derived from an Appraisees function such as Marketing, HRD, Finance and so on. For a Marketing Manager, for example, the thrust area could be the introduction of new products in one year and it could be distribution in another. The Appraisee documents his KPA's, in order of priority on page 1 of the appraisal form. The number of KPA's identified may be less than 5 and may sometimes even exceed 5. Unit HRD for reference. The Appraisee retains the original appraisal form, gives a copy of pages 1, 2, & 3 to the Appraiser and the

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A2

First six months' objectives (To be filled by Appraisee after discussion with his Appraiser) The next step of the form involves listing down objectives based on the KPA's. Objectives are specific quantifiable tasks/targets. They establish a yardstick against which performance may be assessed at the end of the review periods. These objectives should be clear, brief, and measurable and time bound. In the case of service functions, it may not be always easy to set objectives in quantifiable terms but efforts must be made in this direction. An element of challenge should be willingly built into them so that the Appraisee stretches for his own good & organizational excellence. An objective cannot be a routine activity of the Appraisee. It must be something that adds a value to the business that did not exist earlier. Let us look at the example of the marketing manager once again. involve the following: If his

KPA is to introduce a new product, his objective to achieve this KPA could

Test marketing the product in region X by July Make the promotion plan by September Hold a launch conference in October Objectives are to be set for each KPA identified for the year. Total

number of objectives set for the whole year should not exceed 5-6. These objectives need to be divided into two categories i.e. those which will be started and completed within the first 6 months and those which will be started after 1st July and will be completed by the end of December. There may be some objectives, which may take more than six months to achieve. In such cases, the objective should be listed both in sections A2

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and A3, clearly indicating what part of it would be completed in the first 6 months and which part in the second half of the year. The column "agreed key objectives" on page 2 provides space for the Appraisee to document objectives to be achieved in the first six months of the appraisal period. At the end of the first six-month period (i.e. June 30) a meeting between the Appraiser and Appraisee will review the progress in achieving the objectives. Separate sub-columns have been provided for both the Appraisee & Appraiser's qualitative assessment of achievement of objectives e.g. they may comment on whether the objectives have been not achieved or partially/totally achieved. If objectives have been partially or not at all achieved, reasons must be assigned for it. Objectives for the second six months may change due to certain exceptional changes in assignment or focus; these changes may be highlighted in the sub-column "agreed action plan". The Appraisee is also given an opportunity to reflect on his performance and identify factors (external or internal) that may have facilitated or inhibited him in achieving his objectives. e.g. facilitating factors - co-operation from other departments, good control systems, support from his Appraiser. e.g. Inhibiting factors - delayed decision making, delay in supplies, change in management policies, lack of training to operate new equipment, period of ill health. Care should be taken to record genuine constraints supported by facts.

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If the Appraisee has made any significant contribution over and above his agreed objectives, it must be captured in the column provided on page 2. Significant contributions may be identified in the following three areas: a) Active role in a Group-wide initiative - e.g. The Group Management Trainee scheme or the group wide organizational survey, being part of any task force or a TPM team. b) Development of subordinates - This would involve documentation of ways in which you have created a supportive work environment e.g. through delegation (entrusted your subordinate/s with higher responsibility). c) System implementation - This may include introduction of a new system or strengthening the existing ones for effective system orientation e.g. a customer feedback system.

A3

Second six months' objectives (To be filled by Appraisee after discussions with his Appraiser) The column on page 3 is similar in concept to the column on page 2. The only difference is that it highlights the agreed objectives set for the second six month's period of the appraisal cycle and the review of that performance.

B1

Personal and Career Development (To be filled only by the Appraisee) The Appraisee has the opportunity to list down:

Any new learning of a significant nature e.g. an innovative way of solving a technical problem or an insight about business acquired from his experience. The idea here is to enable a manager to think through his previous year's experience so that he can reinforce new learning's.

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Any skills and/or expertise acquired or sharpened during the past year in course of work or through training e.g. budgeting, media planning, lateral thinking, interpersonal skills etc.

Areas where he wishes to further improve His plans to achieve the improvements he desires His career interests, immediate and short term (next 1-3 years) so that these may be taken into consideration when planning future assignments for him. And others in the Group. Resource Planning. This will also aid more meaningful Human

B2

Achievement profile (To be filled only by the Appraiser) Its purpose is to provide an overall perspective of the Appraisees contribution & performance. The achievement profile relates to the present job performance & not to potential. This profile is identified by the Appraiser and shared with the Appraisee. The appraiser should use the following scale to arrive at the achievement profile of the Appraisee: Exceptional High Achiever Achiever Consistent Contributor Performer

I___________I____________I___________I

A detailed description of each profile is given below.

It highlights certain

attributes; behavior patterns & performance to enable the appraiser draw a pen picture of the Appraisee, taking into consideration the overall applicability of the profile.

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EA - Exceptional achiever - is one: Whose performance is well in excess of the agreed objectives, with a very high stretch under adverse/normal conditions Who conserves & utilizes his resources optimally Who demonstrates complete mastery of his job & continuously acquires and applies new knowledge Who demonstrates a high degree of initiative and the ability to work independently with a high level of confidence Normally uses creative approaches/solutions when confronted with difficult business situations or problems. Who motivates and inspires his team to contribute its best through mutual trust and two-way communication.

HA - High achiever - is one: Whose performance is in excess of the agreed objectives with a high degree of stretch under adverse/normal conditions. Who conserves and utilizes his resources well Who demonstrates commendable grasp of his job Who demonstrates moderate initiative & seeks guidance only in certain difficult situations Frequently comes up with creative solutions to issues.

CC - Consistent contributor - is one: Whose performance just about meets objectives with a good stretch under adverse/normal conditions Who utilizes his resources well but does not make an effort to conserve them Who possesses reasonably good skills to meet the job requirements

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Takes reasonable amount of initiative but requires reminders & guidance in some routine and many difficult situations. Occasionally comes up with creative approach to problems

Managerial Competencies The appraiser is expected to assess and comment on the Managerial Competencies and personal Attributes of the Appraisee along the dimensions given below. However, it is not essential to comment on all or only the following dimensions. The appraiser may identify dimensions, which have had a As far as possible, the significant bearing on the Appraisees performance. the previous year to make the comments data based. Functional knowledge Leadership Problem solving Strategic Thinking. Resource Allocation Networking Personal Attributes Maturity Creativity Winning instinct Initiative/Motivation Interpersonal competence While the appraisal is being done for Unit Heads, their appraisers' should focus on the following three dimensions, in addition to the one/s the appraiser may have identified relevant to the Appraisee.

appraiser is expected to use live examples; from the actions of the Appraisee in

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Overall business

has a basic interest in and sensitivity to the business Perspective environment. Possesses a strong drive to entity new avenues and redefine the industrial sector.

Management of change A facilitator who possesses the ability to anticipate, respond and adapt to changes in the business scenario to be ahead of competition. Gains the acceptance of his subordinates in the change process, involves them in the implementation of the changes. Development orientation the ability to identify and capitalize on his

subordinates' strengths.

To create an environment

conductive for them to express themselves, learn and support them to acquire new skills and higher levels of performance.

B3 Potential assessment is a measure of the extent to which the Appraisee possesses certain skills and competencies to take on higher responsibilities. This helps to identify areas where the Appraisee can contribute his/her best. The appraiser would need to consider several factors while assessing the Appraisee's potential. e.g. The Appraisee's career growth till date and his/her career aspirations; the quality of performance in the past and at present; strengths and weaknesses; knowledge, skills and attitudes required at higher level and/or any other function; professional qualifications, age, state of health and so on.

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The Appraiser would basically need to match the competencies and personal attributes of the Appraisee with specific functional requirements. While looking for potential to be a Unit head, the appraiser must also consider the managerial competencies stated on page 6 and 7 of the booklet. The appraiser may express the Appraisees suitability in his current role and assign reasons why he thinks or doesn't think so. He may also suggest ways of preparing the Appraisee to take on higher responsibility or be rotated to any other function/units.

B4

Recommendations (To be filled only by the Appraiser) After having identified the Appraisee's potential, the Appraiser would need to recommend the Appraisee for a promotion or transfer or to take on additional responsibility in the same/any other Unit. Similarly, relevant recommendations regarding increment/increase in salary have to be made by the appraiser. After the Appraiser signs the appraisal form, the Appraiser forwards it to his Superior (the reviewer) for his input. The reviewer shares and documents his views about the entire appraisal and then forwards it to the Unit head for his signature. The Unit HRD will compile the data generated, after the recommendations have been made by the Appraiser, Reviewer and the Unit Head so

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as to accordingly plan the implementation of the recommendations so made.

B5

Post Appraisal Discussion (to be filled by Appraiser & Appraisee after discussion) The post appraisal discussion is a constructive dialogue between the Appraiser and the Appraisee. It provides a forum to freely discuss the entire year's performance, personal/career development, factors that have inhibited or facilitated his performance, areas of improvement and the Appraisees development plan. Sufficient time should be devoted to prepare for and hold discussion. The Appraiser is responsible for documenting all the main points discussed. The Appraiser must encourage the Appraisee to analyze his own successes, setbacks etc. The Appraisee should express this assessment on the appraisal process. He may also identify areas in which he would like the support and help of his Appraiser, to contribute more effectively. In case the Appraisee has disagreement with his appraisal done by the Appraiser, the Appraiser is responsible to escalate it to his Superior. The Appraiser & Appraisee may jointly arrive at 1 or 2 development opportunities which are likely to have the biggest impact on achieving the Appraisee's performance plan and fulfilling his development needs. Specific actions to be taken by the Appraisee and Appraiser together, within a specified time frame, must be documented.

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Other means of development such as being part of a task force, visits to plants that have state-of-the-art technology, visits to a company that has introduced a new concept/system that has led to a turn around, may also be documented to be followed up.

Responsibilities The Appraisee and his Appraiser will share the responsibility of preparing the MPDP. The Appraisee - is the one whose performance is to be assessed over one entire appraisal Takes the initiative to prepare the first draft of the P & DP and contribute to its timely completion within 15 days from the receipt of the form from the Appraiser. Informs the Appraiser about his readiness to share & finalize his KPA's Documents the mutually agreed KPA's and objectives in the appraisal form. Retains the original appraisal form, gives a copy of pages 1,2 & 3 to the Appraiser and Unit HRD for reference. Evaluates his progress on the achievement of objectives at the end of six months period and at the end of the year. Forwards the appraisal form to the Appraiser twice during appraisal year (i.e. for a joint progress review after six months & at the end of the year for the final assessment. The Appraiser (The Appraisee's immediate Superior) - is one under whom the Appraisee has closely worked during the appraisal cycle.

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Gives as much importance to the planning of the work and aligning it to organizational objectives, as to evaluating performance and giving feedback. Gives the Appraisee insight into the organizational and departmental objectives. Records major achievements/contributions made by the Appraisee during the year. Ensures that a joint progress review after first six months period takes place. Ensures that the feedback is constructive and actionable. Makes note have and shares specific examples of behavior and incidents for positive and negative feedback. Ensures that the post appraisal discussion is a constructive dialogue between himself and the Appraisee. Shares the MPDP with the Appraisee & ensures its timely completion. At the end of the year, after the final assessment by the Appraiser, he forwards the form to the Reviewer (the Appraiser's Superior).

The Reviewer (Appraiser's Superior) - is one who has worked closely with the appraiser and oversees the department or the function where the Appraise works. Documents his inputs about the performance of the Appraisee Ensures that it does not have generalizing or vague language Calibrates ratings across the function Checks for discrepancies that may occur in rating e.g. If the achievement profile is not supported by valid qualitative feedback. Redirects the MPDP to the Appraiser if it does not meet the requirements.

The Unit Head 27

Ensures the timely distribution of the appraisal forms to the various functional heads in the Unit. Calibrates ratings across the different functions. Acknowledges the appraisal evaluation by signing on each appraisal form Sends all the completed appraisal forms to Unit HRD in time.

Unit HRD Fills in the section on the executive's personal data e.g. name, designation, years of experience etc. and sends the appraisal form to the all Unit heads. Ensures the speedy and effective implementation of the MPDP e.g. obtains feedback from time to time. Ensures uniformity of approach and objectivity in decision making Ensures that compensation revision reaches managers in time Ensures that the appraisal forms reach back to Appraiser for the post appraisal discussion

Corporate HRD Familiarizes unit heads, functional heads and Unit HRD with the common appraisal system and its components. Ensures uniformity of approach and objectivity in decision making Equips Unit HRD to implement the system in their units. Elicits feedback from the units about the effectiveness of the system e.g. through a survey Fine-tunes and refines the system on basis of the feedback received from time to time.

There are some important process steps and responsibilities, which is done by the particular person. 28

Process steps Jointly setting of KPA's and objectives (A1, A2, A3) 0 Joint review of objectives after the first six months period 1 Personal and career development (B1) 2 Achievement profile (B2) 3 Potential assessment (B3) 4 Appraiser's recommendations (B4) 5 Post Appraisal discussion (B5)

responsibilities Appraiser and Appraisee Appraiser and Appraisee Appraisee Appraiser Appraiser Appraiser Appraiser and Appraisee

Senior executive
Overall business perspective: Has business Management of change: A facilitator who possesses the ability the anticipate, respond and adapt to change in the business scenario to be ahead of competition. Gains the acceptance of his subordinate in the change process, involves them in the implementation of the change. Development orientation: The ability to identify To and create capitalist an on his subordinate strength. environment a basic interest in and a sensitivity drive to to environment. Process strong

identify new avenues and redefine the industrial sector.

conductive for them to express themselves, learn and support them to acquire new skills and higher level of performance.

PERFORMANCE APPRAISAL DEVELOPMENT PALN(PADP)

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Performance level Rating for PADP (Managerial Employees) and PADP (NonManagerial Employees) are same as mentioned for MPDP i.e. Exceptional Achiever, High Achiever, Consistent Contributor, performer and non-performer. Managerial competencies are specific to MPDP. With increasing competitive pressures on business, productive of teams and individual performance is getting under the spotlight. No progressive business or team likes to carry less than consistently performing members as part of their team. In Aditya Cement, they have been making continuous effort to improve their performance. Each business must identify its top performer as well as poor performers. Poor / non-performer are not only a drag on the business, but also impact team morale and efficiency of High Performers. PADP (managerial) and PADP (non-managerial) are the way by which Aditya Cement can know who is the best and in what they want improvement. It provides goals and work plan for the next year and these plans are determined by the last achievements, this is the main and important feature. It is created only because Appraiser wants to know that particularly which factor does the employee affect and which factors are perfect. According to that they can easily mention that what would be the score of a particular are of an individual employee. These factors are coming under the Performance Assessment.

PERFORMANCE APPRAISAL DEVELOPMENT PALN (Managerial Personal)

1. Contribution on the job a) Meeting target and tasks Completion of task within deadlines b) Consciousness for cost, quality and productivity Accuracy and neatness of work Consistency of output Adherence to standard laid down and instruction given Awareness of cost involvement and attempts to minimize them Optimum use of resource and time in completion of task

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c) Managerial effectiveness through positive discipline and leadership Ability to win the confidence and support of subordinates Setting personal example to promote discipline Conflict resolution and redresal of grievances Clear guidance and communication to subordinate d) Internal and external customer orientation Awareness of internal and external user of his output Sensitivity their needs with of various groups Meeting their needs with respect to speed and quality of output 2) TPM/ISO/EHS/SA-8000 Systems a) Understanding TPM/ISO/EHS/SA-8000 Systems Familiarity with the principle, objectives and salient feature of TPM/ISO/EHS/SA- 8000 Systems; knowledge of TPM, Quality and Environment Policy Awareness of the department's role vis-a vis organizational compliance with these systems Consciousness of the importance of these systems to the organization Understanding Total Quality Concept b) Implementation of systems Application of TPM/ISO/EHS/SA-8000 philosophies in work practice Meeting of requirements of these systems with regard to quality of work, safety, environment, documentation and etc. Member ship of sub-committees. Preparation of activity boards, work procedures/ work instructions c) Continuous monitoring and achievements

31

 Constant

monitoring

to

ensure

compliance

of all

systems

to

TPM/ISO/EHS/SA- 8000 requirement at all time Continuous assessment of targets to measure their relevance and efforts to revise them as and when required Continuous effort to improve upon TPM/ISO/EHS/SA-8000 target and goals Contribution in preparation of application for various awards Role as internal auditor and auditee Attending circle meeting and monthly TPM communication Meetings 3) Ability to Delegate an Exercise Control a) Willingness and extend to delegation and decentralization Confidence in the ability of their subordinates Willingness to take the risk of allowing the subordinates to "get their feet wet" Equip subordinate with the authority to effectively carry out their responsibilities Constant effects to introduces subordinates to new roles and responsibilities b) Consultation with subordinates on decision affecting their work Awareness of impact of decisions on subordinates work and communicating the same to them Sensitivity to work related needs of subordinates Involving them in the decision making process to the extent possible 4) Analytical Ability and Decision Making a) Ability to plan and organize Chart out a plan for every major task

32

 Setting of goals and targets Clear understanding of resources and time required and optimal allocation thereof Constant monitoring to ensure meeting the targets b) Mental awareness and grasping ability Quickness in understanding problems and issues Ability to concentrate for long hours Ability to process diverse information streams simultaneously Sensitivity to changes in the environments c) Problem solving and decision-making Ability to go to the crux of a situation and understand it thoroughly Ability to envision facets of a situation, extract relevant information and analyze it Ability to visualize all decision alternatives and gauge the effect of each alternative Ability to take a firm stand and follow it up, and the flexibility to change it, if the situation so demand 5) Ability to develop people a) Fairness and objectivity Ability to look at situation from various viewpoints Elimination of basis and preconceived notion while taking decision having an implementation for subordinates Avoiding imposition of one's value system in others Awareness of subordinates needs and motivations

33

b) Training and development of subordinates Awareness of subordinates' job requirement, strength, weakness, interests and career plans Identifying training and development needs of subordinates based on the above and ensuring that they are met Giving constant feedback to subordinates on their performance and giving inputs to upgrade their performance and giving inputs to upgrade their job related skills.

c) Motivation and moral building Ability to act as role model Guiding subordinates to help them achieve their realistic needs Constant interaction with for subordinate so they can stretch themselves Inculcating "we feeling' in subordinates Generosity with support and praise d) Development of successor Identification of likely successor based on job requirement and personal qualities and competence of subordinates Identification of skill/attitude gaps related to grooming of the identified successor Holding of training session and providing counseling, job coaching, OJT's and formal training to the successor to facilitate his/her transition 6) Knowledge of work and awareness of environment

34

a) Job related knowledge Sound grounding in fundamentals of functional area Ability to translate/adapt theory into practice Familiarity with work practices in functional area Expertise in own field of specialization within functional area Good overall knowledge of related field within functional area Ability to appreciate linkage with other functional areas and contribution of other area to the organization b) Awareness of latest development in field of operation Updating of knowledge by regularly by reading journal and books related to field of operation Ability to use acquired knowledge to add value to the department and the organization Eagerness to work with people possessing good knowledge or experience in his area. Membership of professional bodies c) Ability to adapt/ responsiveness to change Awareness of the impact of various changes in the e internal and external environment on the department and the organization Change of work practices in accordance with the change in scenario d) Knowledge of organization polices and procedures Familiarity with the vision, mission and core values of the Awareness of organization imperatives and the organization environmental factors influencing organizational direction rules Familiarity with organizational rules, policies and procedures Adherence to organizational values, culture, policies and

35

7) Conceptual and innovative skills a) Anticipation of problems and planning of corrective action Ability to recognize symptoms of a problem situation Quickness of reaction to strike at the problem's root Effectiveness of planning to ensure success in solving Constant monitoring to ensure adequate progress in tackling Documentation of learning to enables combat of similar Ability to think new/ alternative approaches Ability to generate new ideas continuously Ability to find ways to translate ideas into practices

problems problem nature in future

questioning of existing work practice that may not be optional b) Modification proposed and executed Generation of new ideas and approached Creation of entirely new systems Revamp of existing systems Identification of new action areas hitherto ignored Efforts for continues improvement 8) Teamwork and relationships a) Ability to work in teams/promotion of group culture Ability to put team goals in perspective and direct focus towards team goals

36

 Alignment with team rather than individual objectives Active contribution to team work and encouraging inputs from all members Ability to resolve team conflicts b) Ability to work with superiors, peers and subordinates Ability to establish rapport with people within and outside the department Respectful attitude towards superiors and friendly relations with peers and subordinate 9) Communication a) Clarity of thought and willingness to share information Ability to express thought coherently and in a logical manner Elimination of ambiguities/ loose ends in communication Keenness to share information of use to other, within and outside the department b) Verbal and written communication skills Ability to put one's point across forcefully with out causing disrespect Use of appropriate language in written and verbal communication Ability to communicate precisely without omitting key detail c) Capacity to listen to and appreciate other points of view Openness to suggestions Tolerance of dissenting viewpoint Encouragement of feedback Willingness to change the stand in light of new facts Patience in listening to other's problems or grievances

37

 Ability to look at things from the viewpoint of "the other persons" There after Appraisee got overall rating out of 200. The purpose of assigning performance level ratings is to provide an overall perspective of an Appraisees contribution, performance and behavior. It essentially reflects achievement profile of the Appraisee and relates to present job performance and not to potential. This rating is given by the Appraiser and further examined by the Reviewer. The post-review rating is to be shared by the Appraiser with Appraisee. The appraiser should use the following rating to depict the overall performance level of the Appraisee:

Exceptional Achiever (EA)

High Achiever (HA)

Consistent Contributor (CC)

Performer (P)

NonPerformer (NP)

A detailed description of each profile is given below.

It highlights certain

attributes; behavioral patterns and performance to enable the Appraiser draw a pen picture of the Appraisee, taking into account the overall applicability of the rating category. Exceptional Achiever (EA): is one Whose performance is well above the agreed objectives/standards of expected performance with a remarkable consistency under adverse/normal conditions Who conserves/utilizes resources optimally Who demonstrates complete mastery of his job and continuously acquires and applies new knowledge Who demonstrates a high degree of initiative and the ability to work independently with great confidence

38

Normally uses creative approaches/solutions when confronted with difficult business situations Who motivates and inspires his team to give its best through effective team building and leadership

High Achiever (HA): A very good performer is a high achiever Whose performance is above agreed objectives/standards of expected performance with a marked consistency under adverse/normal conditions Who conserves and utilizes his resources well Who displays commendable grasp of his job Who demonstrates a good degree of initiative and seeks guidance in difficult situations Often comes up with creative solutions to issues Who is able to build a team and sustain its motivation and morale

Consistent Contributor (CC): is one Who achieves targets consistently under adverse/normal conditions but does not exceed them Who utilizes his resources well but does not attempt to conserve/optimize them Displays reasonable degree of initiative but requires follow-up and guidance in some routine and most of the difficult situations. Who possesses knowledge and skills to meet the task requirement Occasionally comes up with creative approach to problems

Performer (P): is one Who gives just expected performance/level. Finds it difficult to achieve his objectives in adverse conditions or demanding situations Who has limited job knowledge and skills Could have utilized his resources better

39

Who takes less initiative and has to be pushed constantly to get work done Carries a conventional approach to job

Non-Performer (NP): is one Who consistently fails to achieve targets/expected standards of performance. Displays unwillingness to contribute Who wastes organizational resources Exhibits total ignorance of job knowledge Carries negative attitude and closed mind set

In case any Appraisee is rated as "EA" or "NP" than it is necessary to give at least two specific reasons. At the last there should be the signature of Appraiser and Reviewer with their comments and date as well. On the next page of the Appraisal process the Appraiser should clearly specify one or two areas for Performance Enhancement and suggest the ways through which improvement can be achieved. It is necessary to inform to Appraisee about the Performance Rating and Area of Improvement, with name, designation, and department as well. The last section of the process is especially for the Goals and Work Plans for the upcoming year. This division is to be filled by the Appraisee in consultation with Appraiser with his/ her name, designation and department also. In this section the Key Objectives or Goals are fix on with the target Date for the first and second analysis of the coming year. At the last Appraiser and Appraisee should do signature on it.

40

41

2.6.2. Performance Appraisal and Development Plan (Non-Managerial Personnel) Successful implementation and institutionalization of Performance Appraisal demands the real support and active participation of all concerned i.e. Appraisee, Appraiser, Reviewer and Unit Head. contribution to make this system effective. This Appraisal Process is usually same as the PADP-Managerial Personnel process. Factors are the important part of process, which makes difference between both the PADP Processes. But according to requirement Nonmanagerial personnel need not to make any future plans. So that, this process doesn't have the section of Future Goals and Work Plan. Description of Appraisal Factors I. Work Performance A. Internal customer orientation Awareness of internal and external users of output Sensitivity to the needs of various user groups Meeting their needs with respect to speed and quality of output They need to make wholehearted

B. Job related knowledge Sound grounding in fundamentals of functional area Ability to translate/adapt theory into practice Familiarity with work practices in functional area Expertise in own field of specialization within functional area Good overall knowledge of related field within functional area Ability to appreciate linkages with other functional areas and the

contribution of other areas to the organization

42

C. Meeting targets / tasks Completion of tasks within deadlines

D. Cost and production consciousness Accuracy and neatness of work Consistency of output Adherence to standards laid down and instructions given Awareness of costs involved and attempts to minimize them Optimal use of resources and time in completion of task

E. Modifications suggested / implemented Generation of new ideas and approaches Creation of entirely new systems Revamp of existing systems Identification of action areas hitherto ignored Efforts for continuous improvement

II. Quality of Work A. Speed Quickness in planning and execution of work Quick response to change Conformity with instructions and standards Low incidence of errors or rework

B. Accuracy

C. Consistency Uniformly accurate and timely completion of tasks

III. Team Work and Relationships A. Ability to work in teams / promotion of team spirit

43

Ability to put team goals in perspective and direct focus towards Alignment with team rather than individual objectives Active contribution to team work and encouraging inputs from all Ability to resolve team conflicts

team goals

members

B. Relationship with superiors, peers (colleagues) and subordinates Ability to establish rapport with people within and outside the Respectful attitude towards superiors and friendly relations with department peers and subordinates C. Trustworthiness and openness Ability to get along with people and win their confidence Willingness to share information useful to others within or outside

department IV. Attitude Towards Work A. Positive thinking and involvement in the job Self confidence Can do attitude towards problem solving Willingness to stretch oneself to achieve tasks Whole hearted commitment to achievement of desired results

B. Intra departmental (within the department) and inter departmental cooperation and support Eagerness to help others within and outside department Broad organization level outlook rather than a narrow department

or sub section level outlook

44

C. Ability to execute jobs without guidance Willingness to accept new roles and responsibilities Ability to plan and carry out tasks independently

D. Waste control and safety consciousness Awareness of safety and wastage issues in the department and Attempt to minimize wastage and ensure safety in all actions Concern for departmental and organizational environment Concern for safety needs of others throughout the organization

V. Initiative A. Ability to bring new ideas to work place Ability to generate new ideas Ability to implement ideas in organizational context Constant questioning of sub optimal systems and procedures

B. Independent thinking and risk taking Willingness to rise up to challenges Originality of views Ability to carry forward and test new ideas

C. Readiness to introduce changes voluntarily and shoulder higher responsibility Quality of performance of non-routine tasks Attitude towards change measures initiated in department and Willingness to accept responsibility for failures as well as

organization successes

45

VI. VII.

Dependability Emotional identity with the job and the organization Level of correlation between personal and organizational goals Subordination of personal goals to those of the organization Commitment that goes beyond the fulfillment of professional

responsibilities VIII. Discipline A. Punctuality hours B. Maintenance of dignity and decorum at work Respect for peer group and superiors Role model for subordinates Proper attire at all times Neat maintenance of workspace Polite, respectful and civic language Adherence to work timings Cooperation with requests to complete urgent work beyond office

C. Adherence to rules / regulations Awareness of organizational rules and regulations Strict adherence thereto

46

4.1. CONCLUSION From the study, the researcher concludes that in Aditya Cement performance appraisal system is working at an expected pace. The topic Effectiveness of performance appraisal system in Aditya cement is done by the survey method. Successful implementation and institutionalization of Performance Appraisal demands the real support and active participation of all concerned i.e. Appraisee, Appraiser, Reviewer and Unit Head. contribution to make this system effective. Appraisal should be viewed essentially as an instrument of development and not an instrument of rewards by the management only. After the analysis the researcher comes to know that the Appraiser should try to analyze the strengths and weaknesses of an employee and guide him about building his skill/behavioral gaps. In Aditya cement the Appraiser should organize a feedback session with Appraisee after appraisal during which feedback can be given to appraisee and his difficulties in performing assigned tasks can be understood. For avoiding discrimination in appraisal, Aditya Cement used three types of appraisal process MPDP, PADP (managerial) and PADP (non-managerial). So that every employee get good and appropriate appraisal at proper time. Thus, the policy and practice of performance appraisal at Aditya Birla is none or less service the bank purpose of human resource development and so also the organizational effectiveness. They need to make wholehearted

47

BIBLOGRAPHY

48

Appendix-B (Speciment copy from Aditya Cement)

Managerial Performance and Development Plan ______________________________________________________________________________ _______ Year: 2004 2005 Name : Designation : Grade : Qualification : Length of service : Length of service in present position : Unit : Location : Department : Last Increment date :

49

A 1 Key Performance Areas 11 (Please list down Key Performance Areas after discussion between Appraiser and 1 Appraisee)
1.

2.

3.

4.

5.

50

A 2 11 1

First Six Months' Objectives ... Results Achieved Appraisees Assessment Appraisors Assessment

Agreed Key Objectives 1

Agreed Action Plan

What factors have helped and/or hindered performance during the past six months ?

Any significant contribution made by the Appraisee over and above his/her objectives. (Please refer to the booklet for egs & details)

Signature of Appraiser

Signature of Appraisee

51

A 3 11 Second Six Months' Objectives... 1 Results Achieved

Agreed Key Objectives 1 Appraisees Assessment Appraisors Assessment

Agreed Action Plan

What factors have helped and/or hindered performance during the past six months ?

Any significant contribution made by the Appraisee over and above his/her objectives. (Please refer to the booklet for egs & details)

52

Signature of Appraiser

Signature of Appraisee

B1 1
1.

Personal and Career Development (To be filled by the Appraisee only)

What has been your significant learning during the past year?

2.

List down the skills and competencies that you have acquired or sharpened during the past year?

3.

List down areas you would like to improve further.

4.

How do you plan to achieve the improvements you desire?

5.

What are some of your career aspirations?

53

B2 1

Achievement Profile (To be filled by the Appraiser only) Exceptional Performer Achiever High Achiever Consistent Contributor

Comment about the managerial competencies and personal attributes of the Appraisee : (Please refer to the booklet for egs & details)

Comments by the Reviewer

__________________ Signature of Appraiser Date :

__________________ Signature of Reviewer Date :

54

B 3 (To be filled by the Appraiser only) 1

1. Are the managers abilities best used in his/her present job ? Yes No

Potential Assessment

1a. If no, what job should he/she be assigned for best use of his/her current abilities ? (Please explain your recommendation)

2.

Is he/she ready to be assigned higher responsibility ? If yes, what kind of higher responsibility can he/she be given and in what time frame? What preparation does he/she need to make to take up such responsibility ?

3. Does the manager have long term potential to occupy senior positions ? (e.g. Functional Head in large unit, a Unit Head or Head of a new project) Yes 3a. No

If yes, please explain his/her long term potential and what abilities and qualities indicate such potential ?

4. If the manager has long term potential (see above), what are the two capacities or roles in which he/she should work in the next 3-5 years for further developing such potential ?

55

B 41
1.

Recommendations (To be filled by the Appraiser only) The manager may be promoted immediately as :

2. The manager may be transferred and posted as (in the same unit) :

3. The manager may be given additional responsibility of (in the same unit) :

4. An opportunity for the manager should be looked for in another unit as : (Please specify the nature of responsibility)

5. Amount of increment or percentage increase in salary recommended :

6.

Any other comments:

Reviewers comments (if any):

Unit Heads comments (if any): __________________ Signature of Appraiser __________________ Signature of Review ___________________ Signature of Unit Head

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B5 1

Post Appraisal Discussion

Main points : (To be filled by the Appraiser only)

Appraisees overall response : (To be filled by the Appraisee only)

Development Plan : (To be filled after discussion between Appraiser & Appraisee) Training suggested Time Frame Reasons

Others means of development : (e.g. visits, short assignments)

___________________ Signature of Appraiser

__________________ Signature of Appraisee 57

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