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Performance appraisal is an objective assessment of an individual’s performance against

well defined benchmarks.

According to Garry Desseler, “A process that consolidates goal setting, performance

appraisal and development into single, common system, the aim of which is to ensure that
the employee’s performance is supporting the company’s strategic aims.”


The increasing use of Performance management reflects several things. It reflects, first,
the popularity of the Total Quality Management (TQM) concepts advocated several years
ago by management experts like W. Edwards Deming. Basically, Deming argued that an
employee’s performance is more a function of things like training, communication, tools,
and supervision than of his or her own motivation.

Performance Management emphasis on the integrated nature of goal setting, appraisal,

and development reflects this assumption. Second, it reflects the fact that a vast array of
studies that traditional performance appraisal are often not just useless but
counterproductive. Third, Performance management as a process also explicitly
recognizes that in today’s globally competitive industrial environment, every employee’s
efforts must focus like a laser on helping the company to achieve its strategic goals. In
that regard adopting an integrated; performance management approach to guiding,
developing, and appraising employees also aids the employer’s continuous improvement
efforts. Continuous improvement refers to a management philosophy that requires
employers to continuously set and relentlessly meet ever-higher quality, cost, delivery,
and availability goals.


Data relating to performance assessment of employees are recorded, stored, and used for
several purposes. The main purposes of employee assessment are:

1. To effect promotion based on competence and performance.

2. To confirm the services of probationary employees upon their completing the

probationary period satisfactorily.

3. To assess the training and development needs of employees.

4. To decide upon a pay rise where (as in the unorganized sector) regular pay scales
have not been fixed.

5. To let the employees know where they stand insofar as their performance is
concerned and to assist them with constructive criticism and guidance for the
purpose of their development.

6. To improve communication. Performance appraisal provides a format for dialogue

between the superior and the subordinate, and improves understanding of personal
goals and concerns. This can also have the effect of increasing the trust between
the rater and the ratee.

7. Finally, Performance appraisal can be used to determine whether HR programs

such as selection, training, and transfers have been effective or not.

Broadly, performance appraisal serves four objectives-(1) Developmental uses, (2)

Administrative uses/decisions, (3) Organizational maintenance/ objectives, and (4)
Documentation purposes.


Graphic Rating Scale Method

The Graphic Rating Scale is the simplest and still most popular technique for appraising
performance. A Graphic Rating Scale lists traits (such as quality and reasonability) and a
range of performance values (from unsatisfactory to outstanding) for each trait. The
supervisor rates each subordinate by circling or checking the source that best describes
his or her performance for each trait. The assigned values for the traits are then totaled.

Alternation Ranking Method

Ranking employees for the best to worst on a trait or traits is another option. Since, it is
usually easier to distinguish between the worst and best employees, and Alternation

Ranking Method is most popular. First, list all subordinate to be rated, a then close out the
names of any not known well enough to rank. Then, on a form the employees who is
highest on the characteristics being measured and also the one who is the lowest. Then
choose the next highest and the next lowest, alternating between highest and lowest until
all employees have been ranked.

Paired Comparison Method

The Paired Comparison Method helps make the Ranking Method precise. For every trait
(quantity of work, quality of work, and so on), you pair and compare every subordinate
with every other subordinate.

Suppose you have five employees to rate. In the Paired Comparison Method, you make a
chart, of all possible pairs of employees for each trait. Then, for each trait, indicate (with
a+ or a-) who is the best employee of the pair. Next, add up the no. of +s for each

Forced Distribution Method

The Forced Distribution Method is similar to grading on a curve. With this method, you
place predetermined percentage of ratees into performance categories.

For example, you may decide to distribute employees as follows.

15% High Performers
20% High-Average Performers
30% Average Performers
20% Low-Average Performers
15% Low Performers

Critical Incident Method

With the Critical Incident Method, the supervisor keeps a log of positive and negative
examples (Critical Incidents) of a subordinate’s work-related behavior. Every six months
or so, supervisor and subordinate meet to discuss the latter’s performance, using the
incidents as example.

This method has several advantages. It provide actual example of good and poor
performance the supervisor can use to explain the person’s rating. It ensures that the
manager or the supervisor think about the subordinate’s appraisal all during the year. The
rating does not just reflect the employee’s most recent performance. The list hopefully
provides examples of what specifically the subordinate can do to eliminate any
deficiencies. However, without some numerical rating, this method is not too useful for
comparing employees or making salary decisions.

It’s useful to accumulate incidents that are tied to employee’s goals.

Behaviorally Anchored Rating Scale

A Behaviorally Anchored Rating Scale (BARS) combines the benefits of narratives,

Critical Incidents, and quantified (Graphic Rating Type) scales by anchoring a rating scale
with specific behavioral examples of good or poor performance. Its proponents say it
provides better, more equitable appraisals than do the other tools to we discussed.

Developing BARS typically requires five steps:

1. Generate Critical Incident. Ask person who know the job (jobholders, and/or
supervisor) to describe specific illustration (critical incidence) of effective and
ineffective performance

2. Develop Performance Dimensions. Have these people cluster the incidents into a
smaller set of (5 or 10) performance dimensions, and define each dimension, such as
“salesmanship skill”.

3. Reallocate Incidents. Another group of people who also know the job then reallocate
the original critical incidents. They get the cluster definition and the critical incidents,
and must reassign each incident to the cluster they think it fits best. Retain a critical
incident if some percentage (usually 50% to 80%) of this second group assigns it to
the same cluster as did the first group.

4. Scale The Incidents. This second group then rates the behavior described by the
incidents as to how effectively or ineffectively it represents performance on the
dimension (7- to 9- points scales are typical).

5. Develop A Final Instrument. Choose about six or seven of the incidents as the
dimension’s behavioral anchors.

Management by Objectives (MBO)

Stripped to its basics, Management by Objectives requires the manager to set specific
measurable goals with each employee and then periodically discuss the latter’s progress
towards these goals. You could engage in a modest and informal MBO program with
subordinates by jointly setting goals and periodically providing feedback. However, the
term MBO generally refers to a comprehensive and formal organization wide goal setting
and appraisal program consisting of six steps:

1. Set the organization’s goals: Establish, based upon the firm’s strategic plan, and
organization wide plan for next year and set specific company goals.

2. Set developmental goals: Next department heads take these company goals (like
“boost 2004 profits by 20 %”) and, with there superiors, jointly set goals for their

3. Discuss departmental goals: Department heads discuss the department’s goals with
all subordinates, often at a department wide meeting. They ask employees to set their
own preliminary individual goals; in other words, how can each employee contribute
to the department’s goals?

4. Define expected result (set individual goals): Department heads and their
subordinates set short-term individual performance targets.

5. Performance reviews: Department heads compare each employee’s actual and

targeted performance.

6. Provide feedback: Department heads and employees discuss and evaluate the later

360 Degree Appraisal system

Traditionally, performance appraisal was just limited to two main persons involved in the
feedback process - namely the supervisor and the employee. The top-down approach,
the usual performance appraisal jamboree in corporate, is conducted where the supervisor
and the employee discuss one-to-one on broad swathe of issues pertaining to the latter's
performance out comes. This traditional approach, involving supervisor and employee, is
riddled with the problems of subjectivity, bIAS,es and halo effect. The traditional top-

down approach predicated on single source of feedback (i.e. supervisor) suffers on
account of limited knowledge and inaccurate view of the not-so-competent supervisor.
Many a time, supervisors also try to avert being on collision course with the sub-ordinates
and may obscure the picture by giving inputs that may be entirely untrue. Since
supervisors are far removed from the flow of work, they may find it tough to give feed
back hinged on actual observation. Even if the supervisor intends to give a positive
criticism he may still hold himself in the tracks for want of actual incident to buttress his

Half the time an individual does no get a real picture and gain an actual glimpse into the
kind of person one is. An employee's ability to identify core strengths and quelling
weaknesses gets irredeemably impaired. The information asymmetry about our
competencies, skills and performance related outcomes strait jackets the development,
stultifies the growth and limits the perspectives. The question that begs an answer is: is
there a way forward? Is there a feed back approach where the inputs about an individual’s
performance can be sourced from multiple – levels? Will it be possible for the individual
to get feed back about his/her managerial and behavioral dimension from multiple
sources? The answer to all these questions are deafeningly loud and crystal clear - 360-
degree feedback holds the key. In today's competitive environment, gathering information
from all directions to assess one's standing has become an urgent imperative and
compelling necessity. In addition to this, the corporate culture is on the cusp of profound
evolution. There is an increased thrust on teamwork and delivering a world-class
customer service. Employees development needs has become the byword among
businesses. In a highly commoditized job market, companies are using every thing at the
command to attract and retain the best talent. Businesses are helping employees to
replenish their skills to stay relevant in the evolving times. Companies are looking to
ways and means to optimize and measure employees and company’s performance. The
trajectory of these developments has shifted the focus from single – source feed back
system to multiple – source feed back system.

Advantages of 360 degree feed back

360 degree feed back, if implemented properly, will bestow many benefits up on the

• Feed back that emanates from various source, leaves little room for any
discrimination or bIAS,. In appraisal exercises, any discriminative slant of the
supervisor can be nullified if the multi – source feed back shows that the supervisor
input is not in conjunction with that of co-workers and customers and other

• Feed back originating from multi sources can give a glimpse in to individuals
performance improvement needs.

• Enhanced cohesion in the team, better communication and improved productivity

levels are the positive fall out of implementing 360 degree feedback

• Front line employees can hone their customer skills to near perfection owing to the
feed back of the customers. This may enhance the customer service levels.

• Subordinates, derive enormous sense of importance and empowerment when asked to

provide feed back about their superiors

• Decisions making percolates down to the lowest and lowest echelons of an

organization, making it truly participative

• Fosters a very open culture where giving and receiving feed back is common place

• 360 degree helps the organization to zero in on and leverage the overall strengths.

• Increased focus on internal customer satisfaction

• Brings in more objectivity to the appraisal process and complements the traditional
appraisal system

• 360 feed back is an effective tool for identifying development needs

360 degree can work wonders if it is properly implemented in organizations. For 360
degrees to work the organization climate should be supportive. In a wrong environment if
360 degree is implemented without providing training to the raters to enable them handle
the process effectively, it can have a deleterious effect on the well-being of the
organization. If 360 degree is tied to the strategic initiatives of the organization, it may
have a winning process on their hands.


About the organisation

Rajasthan State Mines & Minerals Limited (RSMML) is one of the premier public sector
enterprises of the Government of Rajasthan, primarily engaged in mining and marketing
of industrial minerals in the State. The very objective of the company is to achieve cost
effective technological innovations in the mining of minerals and to diversify into mineral
based downstream projects. Apart from the above, the Company is also aiming at long
term fuel supply to lignite based power projects, apart from setting up wind energy farms
at Jaisalmer. This company is professionally managed and remains focused towards
increasing productivity and growth.


Year 2003, witnessed completion of amalgamation of Rajasthan State Mineral

Development Corporation Limited (RSMDC), another Rajasthan State Government PSU
with Rajasthan State Mines & Minerals Limited (RSMML) was issued by the
Department of Company Affairs, Government of India (Order No. S.O.207(E) dated
19th February 2003) under Section 396 of the Companies Act, 1956 and the same has
come into effect from 20th February, 2003, the date of its publication in the Gazette of
India (Extraordinary).

Strategic Business Units & Profit Centres

After amalgamation, the following four mineral based Strategic Business Units & Profit
Centers (SBU & PC) namely Rock Phosphate, Lignite, Gypsum and Limestone have
been set up as a part of corporate restructuring: -

• Strategic Business Unit and Profit Centre – Rockphosphate at Udaipur.

• Strategic Business Unit and Profit Centre – Gypsum at Bikaner

• Strategic Business Unit and Profit Centre – Limestone at Jodhpur

• Strategic Business Unit and Profit Centre – Lignite at Jaipur

Rock Phosphate continued its prime position in the business profile of the Company and
catered to almost 94% of the indigenous demand. The capacity of industrial beneficiation
plant was increased from 1500 TPD to 3000 TPD and the production got streamlined.
The production of lignite was streamlined at Giral and the company is gearing up fast for
providing one million tonnes of lignite for the lignite based thermal power plant at Giral
under state owned Company, Rajasthan Vidyut Utpadan Nigam Ltd. Being pioneer in the
lignite field, RSMML has ensured its strong presence in the lignite based power sector in
Rajasthan. Dispatches of gypsum touched 2.88 million ton in 2007-08. Renewed
emphasis on environmental management was stressed upon for the management of
gypsum mines. Supply of SMS grade limestone to the steel plants of India touched the
record level of 2.09 million tones in 2007-08.

In the year 2007-08, company has achieved the profit before tax Rs. 186.75 crores in
comparison to profit before tax of Rs. 156.11 crores in 2006-07. The Company started a
number of R&D activities to further strengthen its R&D activities. Generous
contributions were made for creation of life saving medical infrastructure in 8 project
districts. The dividend of Rs. 15, 51, 03,000/- was declared for the year 2007-08.

RSMML today has broken away from its monopolistic moorings and welcomes
competition. From a small backwaters company, it is now rated as a technologically
advanced company and an innovator. It boasts of a highly trained and competent
workforce and strong financial base. It has established itself as the most successful public
sector company in Rajasthan.

Board of Director

The present constitution of the Board is as under:

1. Smt. Kushal Singh, IAS,, Chairman Chief Secretary to the Government of Rajasthan,

2. Shri C S Rajan, IAS, Principal Secretary to the Government of Rajasthan, Department

of Industries, Jaipur

3. Shri S Ahmed, IAS, Principal Secretary to the Government of Rajasthan,
Department of Agriculture, Jaipur

4. Shri C.K. Mathew, IAS, Principal Secretary to the Government of Rajasthan,

Department of Finance, Jaipur

5. Dr. Govind Sharma, IAS, Principal Secretary to the Government of Rajasthan,

Department of Mines & Petroleum, Jaipur

6. Shri A.C. Wadhawan, Ex-CMD, Hindustan Zinc Ltd, New Delhi

7. Shri Akhil Arora, IAS, Managing Director, Udaipur


The Organization has its operations in four different departments:

1. Mining (Phosphate, Lignite, Limestone, Gypsum)

2. Beneficiation

3. Wind Power

4. Biodiesel


The major activity of RSMML is the mining of Rockphosphate ore. It operates one of the
largest and fully mechanised mines in the country at Jhamarkotra, 26 Kms. from Udaipur
and Kanpur Group of Mines located 15 Kms. from Udaipur is upcoming as a second
Rockphosphate complex in Rajasthan.

In India the economy being predominantly based on agriculture, the fertiliser production
plays a pivotal role. Only about 35% to 40% of the requirement of raw material for
phosphatic fertilser production is being met through indigenous sources and the rest is
met through import in the form of rock phosphate, phosphoric acid & direct fertilisers. In
such a situation Jhamarkotra plays an important role by contributing 98% of rock
phosphate production of India.

Rock Phosphate mines at Jhamarkotra & Kanpur Group of Mines are complex deposits.
Mining these rock phosphate deposits is far more difficult than that in most parts of the
world. Despite the complexities of the deposit, excellent results have been achieved by
continuous innovations. With an annual rock handling of about 20 million tonnes,
Jhamarkotra is probably the largest open cast mine in India outside the steel and coal
sectors. On technical fronts the problem of ground water had affected the mining
operations, until an effective dewatering scheme was evolved and implemented. The
geometry of the ore body i.e thin and sharply dipping had resulted in long and narrow pits
with great depth extension, which involves very high stripping ratio with high lead and
lift for waste and mineral. Despite these entire problems Jhamarkotra project could
sustain the very difficult periods because of its commitment towards scientific approach
for exploitation of the deposit with planned development of the pits.

The open pit mining method is being followed at Jhamarkotra Mine & Kanpur Group of
Mines for exploitation of the mineral. The working levels are kept dry by continuous
pumping of ground water through tube-wells constructed on periphery of the pit limit.


The state of Rajasthan is endowed with large lignite deposits in the country after
Tamilnadu & Gujarat. In the three districts of the state viz. Bikaner, Nagaur and Barmer,
geological reserves of more than one billion tonnes have been confirmed so far by
exploratory drilling. Beside, a deep seated reserve of lignite suitable for underground
lignite gasification also exists in the state. The state is also having lignite blocks suitable
for development of Coal Bed Methane projects.

RSMML is a State Government Enterprise involved with the work of development of

Lignite deposit for mercantile sale in cement, textile, and brick kiln etc industries and for
the ultimate end use of power generation by open cast mining or underground lignite

RSMML at present is operating two lignite mines one at Giral in district Barmer and
another at Kasnau-Matasukh in district Nagaur.

Giral (Barmer)

Giral mine is situated near village Giral, 43 Km from Barmer district in western
Rajasthan. Giral mines, the first modern OPENCAST Lignite mine in Rajasthan

(after closure of Palana underground mine in 1967) was started by the erstwhile
RSMDC in the year 1994. The commercial production of Lignite from this mine,
with envisaged capacity of 300,000 MT per year, was started in May 1995. At
Giral mines, the production and the allied mining activities are being executed in
highly scientific and technically sound manner so as to achieve excellence in all
spheres with particular emphasis on bringing a great degree of consumer

Matasukh & Kasnau (Nagaur)

Matasukh-Kasnau mines are situated near villages Kasnau & Matasukh of Nagaur
district in the central Rajasthan, which is 42 Km from district head quarter. The
commercial production of Lignite from these mines, was commenced from
November 2003 with envisaged capacity of 12, 00,000 MT per year. These mines
are located in central part of Rajasthan, thus having better accessibility to markets
in Uttar Pradesh, Haryana and Punjab. Lignite of these mines has added advantage
of low sulphur and ash contents.

Lignite & its application

Lignite, a premature variety of coal is a dark brown to black combustible mineral

formed over millions of years by the partial decomposition of plant material
subject to increased pressure and temperature in an airless atmosphere. In simple
terms, lignite is a brown coal. In its natural form, lignite is porus, light in weight
and contains a high percentage of moisture and volatile matters as compared to
Fixed Carbon. Because of this, its transportation, over long distances is
uneconomical. Therefore, this fuel is ideally suitable for running Lignite based
power generation plant located close to pit head.


Sanu Limestone Unit, Jaislamer

High quality Limestone is a technological necessity for Steel Plants with the basic oxygen
furnance technology where it is used as a flux. After the closure of limestone quarries at
Dehradun by the historic judgment of the Hon’ble Supreme Court the limestone from
Jaisalmer found enormous importance in the Steel Industry. It was the recommendation of
the technical team constituted by Govt. of India in the year 1986 after assessing the

various limestone deposits available in the country that the low silica limestone available
from Jaisalmer is the best suited for use in the Steel Industry. Based on the
recommendation mining of Limestone was commenced by the company since 1988 for
supply to different Steel Plants from their mines at Sanu. Jaisalmer limestone is best
suitable for use in Steel Industry because of low silica and high decrepitation index.
Hence the total production is dispatched to various Steel Plants of SAIL and TISCO. The
company is the largest producer & supplier of steel grade limestone in the country.

This high grade, low silica, hard compact limestone is available in Khuiyala formation of
Eocene age of Tertiary period. The company has around 20.00 square KM area near
village Sanu at a distance of 56 Km from Jaisalmer on Jaisalmer – Ramgarh road & is
well connected with all weather tar road maintained by Border Road Organization.
The total mineral reserves under the areas held with the company are167 Million Tonnes
of S.M.S grade limestone & 2153 Million Tonnes of Cement grade limestone. Company
has enhanced its mineral reserve status by applying few more areas in the same belt.

Open cast mining method with single bench, deploying HEMM and conducting deep hole
blasting is in practice. The sizing of ROM limestone is carried out by four nos. fully
mechanized Sizing & screening plants of the total capacity 20.00 lac MT per annum. The
different size products are dispatched from mines as well as by rail from Jaisalmer
Railway sidings of the company. Jaisalmer is the terminus Railway station of the North-
Western Railway connected with Broad gauge link.


• Steel Authority of India Ltd- Bokaro, Bhilai, Rourkela & Durgapur Steel plants
• Tata Iron & steel Company Ltd-Jamshedpur Steel plant
• Rastriya Ispat Nigam Ltd- Vizag Steel plant
• Indian Iron & steel company Ltd- Burnpur
• Jindal Iron & Steel Ltd-Toranagallu

Limestone Unit, Gotan

Limestone Unit, Gotan is located near Village Gotan District Nagaur of the State
Rajasthan. It is 90 kms. from Jodhpur. It is well connected with rail link on Jodhpur-
Jaipur Broad Gauge Line.

The limestone deposits of Gotan are a part of the famous Sojat-Bilara-Nagaur limestone
belt of Vindhyan Supergroups. Mining of limestone at Gotan was started by company in
the year 1974.The company has three leases in the name of Gotan-I, Gotan-II & Basani
with total area 4915.18 hects covering mines of Heera, Sawai,Sona, Dhanappa, Kerli,
Keria, Ganthiyala & Pawani. These mines are around 10 KM from Gotan. The limestone
deposit of Sawai-Heera & Sona mines of Basni lease are considered to be the best
available deposit in the entire Sojat-Bilara-Nagaur belt. The deposit contains very low
silica, high calcium and moderate decrepitation index. All the grades of limestone is
produced from these mines & supplied to steel plant, chemical plant, white & gray
cement plant & local kilns of limestone.

Mining is carried out by mechanized two bench opencast mining method, deploying
HEMM and deep hole blasting. Sizing & loading is carried out by manual means. The
company is planning to commission its own sizing & screening plant at mines of the
capacity 40 TPH during current financial year 2005-06. The different size products are
dispatched FOR mines as well as by rail from Gotan Railway sidings (BG).


• M/s Shree Ram Vinyl & Chemicals, Kota

• M/s Grasim Ind. Ltd.,
• M/s J. K. White Cement Works
• M/s Indian Iron & steel company Ltd- Burnpur
• M/s ACC Ltd, Lakheri
• M/s Agarwal Cement & Chemicals Pvt. Ltd. ,
• M/s Agarwal Minechem Ltd.
• Local Limekilns of Gotan

Fluorspar Unit, Bhinmal

The Fluorspar Unit, Bhinmal is located near town Bhinmal in District Jalore of the State.
It is nearly 200 kms. from Jodhpur on Jodhpur–Sanchore State Highway. The mining of
fluorspar at Bhinmal was undertaken by the Company from its four areas in the year
1976.Here mineral fluorspar is deposited in the volcanic rocks found as vein-forms in the
agglomerates as host rocks. Fluorite mineralization occur as a cavity filling associate with

fissures, joints, fracture places and shear jaws, displaying a variety of space filling
structures. Most of the fluorite veins are steeply dipping. This is only deposit working for
fluorspar in the state Rajasthan.

Mining operation is semi mechanized open cast multiple benches with jack hammer
drilling & blasting method. The sizing & sorting & loading are done by manual means.
The different grade products in gitty form are dispatched from mines


For High Grade {CaF2 30-40% to 70-75%}

• M/s. Hariyana Steel & Alloys Ltd., Murthal
• M/S. Bhushan Ltd., Chandigarh
• M/s. Ambica Steel, Sahibabad
• M/s. Starwire India Ltd., Ballabhgarh
• M/s. Vardhaman Special Steels Ltd., Ludhiyana
• M/s. Aarti Steels Ltd., Ludhiyana
• M/s. Stainless India Ltd., Jodhpur
• M/s. Synergy Steel Ltd., Alwar
• M/s. Bharat Trades, Nagpur
For Low Grade {CaF2 15-20% to 20-30%}
• M/s. Laxmi Cement, Banas, Sirohi
• M/s. Raj. Ambuja Cement, Rabariwas, Pali
• M/s. Sourastra Cement, Ranawas, Gujarat
• M/s. Siddhi Cement, Veraval, Gujarat
• M/s. Jay Khodiyar Transport Co., Veraval, Gujarat

Safety and Environment Protection Measure

The Company is not only concerned with the increase in production only but also equally
concerned about the safety in mines and environment protection measurers. The efforts
made by the company in this regard were appreciated during the Safety week &
Environment Week organized by the different Departments of Govt. of India.

The mines of SBU were accredited with the number of awards under various categories
like Reclamation & Rehabilitation of land, Nose & Vibration Control, Air Pollution

Control, Management of sub grade Mineral, Heavy Earth Moving Machinery &
Maintenance, Opencast Working Place & Plans, Dust Suppression, Welfare amenities,
Explosive, Transport Road, Vocational training & supervision, HEMM and Maintenance,
Welfare Amenities, Afforestation/Plantation etc. All mines of the SBU’s are ZERO
accidents zone. Time to time training to the mine workers are imparted to cope up with
latest technologies & also regular medical checkup are provided to each & every mine

The statutory obligations formulated by the Ministry of Environment & Forest, GOI &
the State Pollution Control Board are complied with by the company. Regular monitoring
six monthly bases is being carried out at each mine to monitor the ambient air quality.
Despite of the adverse geographical location of the mines of the SBU’s , every year
plantation programme are being carried out at mines as well as around office/residential

Social and Welfare Activities

For the purpose of socio economic development of the areas falling under the working
zone of SBU the company is taking all possible efforts to improve the social life of the
surrounding villagers of the mine areas by generating direct & indirect employment.
Further, additional add is being provided to schools, panchayat under social development
activity. The main activities carried out by the company are as under:-

• Distributed books worth Rs.10,000/- in every Government Schools falling under

the working area of the SBU. A sum of Rs.5.00 lakhs has been spent under this

• Provided two computers in secondary school falling near the working area of the
Sanu mines.

• Fund for construction of building for Cardiothoracic Centre at government

(MDM) Hospital, Jodhpur worth Rs.0.35 Crores has been released.

• Quarterly medical health camping in association of the respective CMHO in the

villages located around the mine site.

• Construction of village approach road connecting Sanu to near by villages in



We are the country’s leading producer of natural Gypsum and Selenite producing about
1.0 million tonnes per year. These are mined in the heart of the Thar desert areas where
the working conditions are very harsh. The deposits are shallow and scattered over large
areas. Most of the land is owned by private cultivators.

The mining of Gypsum of purity of +70% CaSO4, 2H2O is a co-operative effort between
the land owners and RSMML. The farmers gives up his gypsum bearing land to RSMML
in return for an assured share of profits. After mining, the Company improves the land
condition and returns back to the farmer for cultivation.

Gypsum fulfils the demands of the cement industries and powder Gypsum is used by
farmers as a direct fertilizer for reconditioning of alkaline soils for reducing alkalinity and
improving crop production. Selenite is a naturally occurring crystalline form of high
purity Gypsum and is used extensively in the ceramics industries and to manufacture
surgical grade Plaster of Paris.


Looking to the scarce rock phosphate resources in India, RSMML has put continuous
effort for utilization of its low grade ore resources, which are abundant at Jhamarkotra but
require beneficiation before its utilization by fertiliser industries as raw material.
Intensive research was carried out for ten years and a breakthrough in processing
technology was achieved when this LGO was enriched to produce a very high-grade
concentrate (+34%P2O5), rated as equal to or better than any naturally occurring ore.
From reserves conservation point of view RSMML has put up a beneficiation plant for
processing of 9 Lacs MT of low-grade ore per annum.


The plant produces Beneficiated Rock Phosphate Concentrate (Avg. 31.5% and 34%
P2O5 on demand for SSP & DAP Manufacturing Units)

• Original Capacity : 1500 TPD

• Expanded Capacity : 3000 TPD

• Capital Investment : Rs. 357.70 millions

Current Industrial Beneficiation Process

• Crushing & Grinding of LGO to 74 micron size

• Double stage Froth Flotation Process
• First Stage
• Bulk Flotation
• Silica Removal as underflow
• Phosphates & Carbonates removal as froth under natural pH
• Second Stage
• Carbonate Removal as froth
• Phosphate concentrate as underflow under acidic Ph
• Cleaning of concentrate


With a view of diversification activities and to protect environment degradation, RSMML

has entered into wind power generation business in 2001. RSMML has commissioned
14x350Kw wind energy turbine on 70 mtr. high lattice towers at Badabagh area of
Jaisalmer. The wind farm at Badagarh was expanded with additional 14x350Kw WET's
in May 2002. In 2004, RSMML has commissioned 4x1250Kw WETs in Pohra Village of
Jaisalmer. 6x1250 Kw (7.5 MW) was added in March 2006. In last fiscal year 25x600
KW (15 MW) windfarm is installed at Bharmsar- Pohra at Jaisalmer. In year 2007-
08 RSMML has installed 22.5MW (18 x 1250 Kw) wind farm at Hansuwa Satta Gorera
at Jaisalmer. Now the total wind farm capacity of RSMML is 74.8 MW. Annual
Generation of grid quality power is now 900 lacs Kwh from echo friendly wind power.
Further Company is in process of setting additional wind farm in 2009.

The company is having a 20 years power purchase agreement with the state for sale of
wind power. RSMML is also using the wind power for its captive use at Jhamarkotra
mines in Udaipur district.

Registration of Company’s Wind Power Project with Executive Board of Clean

Development Mechanism under UNFCCC (Kyoto Protocol) has been done in April
2006. RSMML has earned Euro worth Rs. 8.0 crores by selling 80000 CERs in
international market.


Developing the vast degraded waste-land of Rajasthan as a viable resource for generating
renewable energy by cultivating Jetropha curcas (Ratanjot), inspired RSMML
management to explore the possibility of putting up a Jetropha based bio-diesel pilot
plant in Jhamarkotra Rock Phosphate project, Udaipur, as a part of company’s continuing
quest for better environment management.

Udaipur division is naturally endowed with wild Jetropha groves with pockets, yielding
good quality seeds. However, to encourage farmers to plant Jetropha on large scale,
confidence about getting reasonable price and assured market, need to be built up.
RSMML management adopted a strategy of end product driven growth, in which farmers
will directly feel the marketability and quality of the end product, i.e. superior bio-diesel
used in mining machinery (thereby creating a strong and permanent demand) which
would encourage them to plant more trees. Being critically dependent on seed price,
better production economies of bio-diesel can only be achieved if seeds are available
aplenty at a support price remunerative to the supplier villager.

RSMML and other mining companies consume huge quantity of fossil fuel for mining
operations. Partial replacement of such petro-oil by bio-diesel will open up effective rural
employment on a major scale and will also help in reducing pollution.

Plantation of Jetropha will also take care of greening of mined out land in the leases of
the companies.

Management of RSMML was aware that Central Salt & Marine Chemicals Research
Institute, Bhavnagar, Gujarat, (A CSIR Laboratory), in association with Daimler Chrysler
had carried out a road test of bio-diesel, derived from Jetropha by using one E-220 CDI
Mercedes car in April, 2004. The test was reported to be a success. Shri R.K.Mishra,
IAS,, MD, RSMML visited CSMCRI in April 2004 and formulated the project after
discussion with Director, CSMCRI. 3000 kg of wild Jetropha seeds from Udaipur were
sent to CSMCRI laboratory for producing bio-diesel.

With the first batch of bio-diesel received from CSMCRI, RSMML started using blended
HSD with 10% addition of bio-diesel. One school bus and a jeep were continuously used
for months, using 10-D blended oil. Performance observed was encouraging.

RSMML also used 368 litres of neat bio-diesel for running a 850 HP HEMM (85T BEML
make dump truck) for 4.7 hours on a test mode. Again, the performance exceeded
expectation. The company also arranged for the testing of bio-diesel so received from
CSMCRI at Bharat Earth Movers Ltd., Bangalore (a Central PSU) for an independent
evaluation. BEML submitted a detailed report based on short run testing of the sample
sent by RSMML and concluded that the results were satisfactory.

Research by Daimler Chrysler shows that, though heat value of bio-diesel is 15% less
than HSD, yet there is minor reduction in mileage.

The board of RSMML approved to set up a pilot bio-diesel plant with 1 TPD seed
processing capacity (260-270 Lt. Bio diesel per day) to evaluate the economics of
operation and to get familiar with the technology.

After confirming the source of seed to the quantum of 3,50,000 kg (350 tons) for the
initial year, RSMML signed an agreement with CSMCRI for transfer of technology and
establishment of plant in Jhamarkotra complex at the cost of Rs. 15.87 lacs. RSMML
paid Rs 10.00 lacs as the transfer of technology fee to CSMCRI and Rs. 9.00 lacs for

The first bio-diesel pilot plant of Rajasthan was commissioned in the last week of March,
2006. The performance guarantee tests were conducted from 26.04.2006 to 28.04.2006.
Bio diesel yield obtained with respect to refined oil was 94.85%. The seeds produced oil
at an average of 27%.

Thereafter, the plant is in successful production and has already produced more than
11000 litres of high quality bio-diesel. The target is to produce and use 1 lakh litre by the
end of the current financial year. Since RSMML technical team has mastered production
technique, scaling up in immediate future is not really a challenge. The main issue is to
get high quality certified saplings in large number to take up massive plantation (75%
Jetropha and 25% fruit bearing trees).

Bio-diesel produced at Jhamarkotra has the following salient features :


Bio-Diesel EN 14214 Specifications

Free Glycerin 0.052 0.2 max.
Total Glycerin 0.13 0.25 max.
FFA% 0.16 0.5 max.

Sulphur (ppm wt) 0.1 10 max.
Carbon Residue (Micro) % Wt 0.04 (Trace) Trace
Moisture (ppm) 450 500

From the table depicted, it is clear that the bio-diesel produced by RSMML is superior to
EN 14214 specifications.

RSMML is using this bio-diesel as an additive for HSD @ 10% and the fuel is being
used by the company in:

Light vehicles (jeeps, small pick ups etc.)

Light commercial vehicles like ambulances, fire tenders

HEMM water sprinklers 380 HP

HEMM heavy dumpers 850 HP

RSMML requested M/s Cummins Diesel Sales & Service (India) Ltd., Pune, the
manufacturers of high capacity diesel engines for evaluation of engines in field
conditions. M/s Cummins Diesel Sales & Services (India) Ltd., Pune, have commenced
elaborate study on the engine performance and the first report is expected within six
months. RSMML has not encountered any problem so far in using the blended bio-diesel
in various categories of engines.

From 7th to 9th August, a new Chevorlet Travera No. RJ-27-TA-0282 hired by the
company travelled 1111 kms. (Udaipur – Jaipur to and fro including city drive)
consuming 80 litres of neat RSMML bio-diesel registering an average mileage of 13.8
Kms/lt with AC and at an average speed of 90 km. per hour. There was very little
emission and the ride was absolutely smooth. The test attested the efficacy of RSMML
bio-diesel on road condition.

Probably for the first time, a technologically advanced vehicle covered such a long
distance using neat bio-diesel on roads of Rajasthan.

By-products of Bio-diesel

Number of by-products like high quality soap, nitrogen rich oil-cake, high purity glycerin
and K2SO4, a potent fertilizer, are also obtained.

RSMML has already consumed 2350 Kg. (valued at Rs. 24/Kg.) of soap in the rock
phosphate beneficiation plant. The oil cake will be sold in the market for production of
bio-fertilizers. There are already several commercial enquiries for oil cakes received by
the Company. Glycerin and Potassium Sulphate are high value by-products, which will be
sold after considerable accumulation.

Taking into account all factors, the cost of production of high quality bio-diesel is around
Rs. 27.50, at a cost of Rs. 7/- per Kg. of seed.

RSMML has also distributed 2.5 lakhs saplings of Jatropha plant procured from Forest
Department in all Panchayat Samities of district Udaipur, free of cost.

RSMML has ambitious plans to enter into large scale plantation of high yielding variety
of Jatropha Curcas in association with Biodiesel Authority of Rajasthan, Forest
Department and local village Panchayats.

The pilot plant has given enough exposure in terms of production methods, quality of
bio-diesel, its test in real time and dynamics of production economics. RSMML’s
experience will be helpful for Government to decentralize production of high quality bio-
diesel synchronized with local collection of wild seeds in a number of tribal panchayats.


Performance Appraisal in RSMML is somewhat behaviorally anchored rating scale cum

Self Appraisal method, where the reporting officer and reviewing officer rate the
executives and this helps in the process of Promotion as the Performance Appraisal has a
weight age of 40% for the purpose of promotion.

Grades of Executives in RSMML

The below are the Grades and the Pay scale of the employees of the Corporate Office of

Grade Title Pay-Scale

E-7 Group General Manager 16400-450-20000
E-6 General Manager 14300-400-18300
E-5 Deputy General Manager 13500-400-17500
E-4 Senior Manager 12000-375-16500
E-3 Manager 10650-325-15850
E-2 Deputy Manager 10000-325-15200
E-1 Assistant Manager 8000-275-13500

Process of Performance Appraisal

Initiation by Personnel Department

Self Appraisal by Employees

Appraisal by Reporting Officer

Review of Appraisal by Reviewing Officer

Final Custody with Accepting Authority

(MD Cell)


Recruitment to grades E1 and E2 is directly held through different tools of selection.

Promotion to Category E3 & E4

The basis for Promotions to categories E3 & E4 shall be seniority cum merit. In making
recommendations for Promotion to the posts up to and including E4, the Departmental
Promotion Committee will assess the comparative merits of eligible candidates on the
basis of the following factors, as per weight age for each factor given below:

A- Annual Performance Appraisal 40 Points

B- Seniority 40 Points
C- Educational Qualifications 10 Points
D- Assessment by DPC 10 Points

Note- This basis would not be applicable for time scale promotion (vide rule 18).

(A) Annual Performance Appraisal (amended in 322nd Board Meeting dated


The Distribution of points for the five preceding years would be as tabulated

Excellent V.Good Good Average
Immediate preceding 10 8 7 6
2 preceding year 9 7 6 5
3rd preceding year 8 6 5 4
4 preceding year 7 5 4 3
5 preceding year 6 4 3 2
Total 40 30 25 20

(B) Seniority

The weight age for seniority would be as under:

For 10 years or more 40 Points

For 9 years 36 Points

For 8 years 32 Points
For 7 years 28 Points
For 6.5 years 26 Points
For 6 years 24 Points
For 5 years 20 Points
For 4 years 16 Points
For 3 years 12 Points
For 2 years 08 Points

Note: A service pf six months would be considered as one unit of measurement for
this purpose and would carry 2 points.

(C) Educational Qualifications:

The maximum points under this factor would be 10, allocable as under:

1. To the executives falling in group1 10 points

2. To the executive falling in group 2 05 points

(D) Assessment by DPC

Up to 10 points would be allocable by DPC after an overall assessment of the

executive’s performance taking all other factors into consideration.

Promotion to Categories E5 & E6

The basis for promotion to categories E5 and E6 shall be seniority cum merit. In making
recommendations for promotion to the posts in these categories, the DPC would be assess
the comparative merits of eligible candidates on the basis of following factors, as per the
weight age for each factor given below:

A- Annual Performance Appraisal 40 Points

B- Seniority 50 Points
C- Assessment by DPC 10 Points

Note- This basis would not be applicable for time scale promotion (vide rule 18).

(A) Annual Performance Appraisal (amended in 322nd Board Meeting dated


The Distribution of points for the five preceding years would be as tabulated

Excellent Good Average

Immediate preceding 10 8 6
2 preceding year 9 7 5
3rd preceding year 8 6 4
4 preceding year 7 5 3
5 preceding year 6 4 2
Total 40 30 20

(B) Seniority

The weight age for seniority would be as under:

For 10 years or more 50 Points

For 9 years 45 Points
For 8 years 40 Points
For 7 years 35 Points
For 6.5 years 32.5 Points
For 6 years 30 Points
For 5 years 25 Points
For 4 years 20 Points
For 3 years 15 Points
For 2 years 10 Points
Note: A service pf six months would be considered as one unit of measurement for
this purpose and would carry 2.5 points.

(C) Assessment by DPC:

Up to 10 points would be allocable by DPC after an overall assessment of the

executive’s performance, taking all other factor into consideration.

Selection of executive to category E7 would be made by the DPC from amongst the
E6 executives available in the company, subject to such executives having served the
company in category E6 for a minimum period of three years.

The DPC shall prepare a panel of suitable candidates in order of seniority. The panel
shall remain valid for one year.

Executive not recommended to be promoted by the DPC would be eligible for

reconsideration by the subsequent DPC for their respective categories. However, on

their being found suitable for promotion by the subsequent DPC, they would rank
junior to those recommended by the earlier DPC.

Stagnation Promotion

(a) An executive working in the same category for a period of 10 years from the date of
his appointment in that category may be granted stagnation promotion to the next
higher scale, subject to satisfactory record of service. However, there would be no
change in the designation of the concerned executive, consequent upon such
promotion. Such promotion would be granted to an executive only once in his service
period in the company.

(b) At the time of regular promotion, no further monetary benefit is extended except
change of designation.

(c) The benefit of stagnation promotion would be available only to executives in

categories E2 and E3.

Urgent Promotion

If a vacancy in a particular category is available for filling up by direct recruitment, and

regular filling up of the post is likely to tale time, and in the interest of work it is not
desirable to keep the post vacant, the appointing authority may, without reference to the
selection committee, make an urgent temporary committee on the vacant post, subject to
such appointee being otherwise qualified for appointment to such post. Such urgent
temporary appointment may be made for a maximum period of six months, or till a
regular appointment is made, whichever is earlier.

Officiating Appointment

If a vacancy in a particular category is available for filling up by promotion, and regular

filling up of post is likely to take time, and in the interest of work it is not desirable to
keep the post vacant, the appointing authority may, without references to the DPC, make
officiating appointment on the vacant post. Such officiating appointment may be made for
a maximum period of six months, or till a regular promotion is made, whichever is earlier.

Only the senior most eligible person in the immediately lower post, however, would be
eligible to be considered for such officiating appointment.

In case of officiating appointment, an officiating allowance shall be payable to the

concerned executive @ 6% of the executive’s pay.

If an officer in the lower grade is permitted to officiate on a higher post as per rule 27 &
28, the officiating period on the higher post shall be adjusted against probationary period
laid down under rule 12 of RSMML Service Rules, 1975 of the Company, provided that
the officiating period is immediately followed by regular promotion.


All direct recruitment shall be subject to the policy of the State Government in regard to
reservation under various heads, as applicable from time to time.

Lateral Transfer

The management may transfer an executive, borne on a cadre, to a post in a different

cadre, in the interest of the Company. Such Transfer would be restricted, however, only to
executives in categoryE4 and above.


An appropriate methodology is an essence of any research work. The success of any

project depends upon the method chosen. Study of Performance Appraisal system in
RSMML is descriptive and dazed on observation and questionnaire. The data has been
made available from various records of Personnel and HRD department.


Problem Statement

To know the Scenario of Executives of RSMML about the dependency of Productivity

and Performance Appraisal over each other.


1. To study the pattern of Performance Appraisal system employed in the


2. To obtain the opinion of executives about the appraisal system.

3. To test the significance of the problem statement.

Research Design

Theory says the research design must specify the data collection method, research
instrument and sampling plan.

Data Collection

The Primary data was collected through

• Interview
• Questionnaire and
• Observation

I interviewed few executives as part of my project to know their view over the
dependency of productivity and performance appraisal.

Secondary Data

The secondary data was collected through:

• Corporate Profile of RSMML

• Text books and references of HRM
• Recruitment & Promotion Rules, 1991

Research Instrument

The research Instrument used was questionnaire

Sampling Plan

Sampling plan means the method, decide before the survey is undertaken of selecting the
object out of universe.

Sampling Unit : Executive of RSMML at Corporate Office

Population Size : 59
Tools used : Statistical tools

Data Analysis

After collecting the data, it was analyzed through the various statistical tools like Mean,
Standard Deviation, Variances and t-distribution test (Test of significance).


I am Gaurav Bhati, student of M.B.A. from D.E.I., Agra needs to conduct a survey
regarding the Summer Internship Project for the completion of degree. Kindly cooperate
by filling it honestly. (You need to rate the question.)

Full Name of the Executive : …………………………………………………….

Designation and Level : …………………………………………………….

Department : …………………………………………………….

A Outstanding
B Excellent
C Average
D Below Average
Above grades have been allotted with a range of marks,

Q1. The appraisal system helps manager to plan their performance well.
A B C D ( )
Q2. Appraisal system provides an opportunity for each appraise to communicate the
support he needs from appraiser to perform well.
A B C D ( )
Q3. The appraisal system provides an opportunity for self review and reflection.
A B C D ( )
Q4. The appraisal systems require an opportunity for both appraiser and appraise to
review expectation and improvement respectively.
A B C D ( )
Q5. Appraisal system is able to make its goals clear to all the executives.
A B C D ( )
Q6. Periodic orientation programs are helpful to explain the objectives and other detail
of Appraisal system.
A B C D ( )

Q7. Performance review discussions are conducted with a view to maintain quality
and care.
A B C D ( )
Q8. Sufficient time is requiring discussing the performer review.
A B C D ( )
Q9. The HRD department follows up seriously training needs identified during
A B C D ( )
Q10. The appraisal devises are used by the HRD for job rotation, job enrichment and
A B C D ( )
Q11. The appraisal data is used as input for recognition and encouragement of appraise
for his office performance and behavior.
A B C D ( )
Q12. Appraisal system facilitates growth and learning in the organization for both
appraise and appraiser.
A B C D ( )
Q13. The appraisal system provides an opportunity for appraise to express his
developmental needs.
A B C D ( )
Q14. The appraisal system has the scope for helping each employee to discover his
A B C D ( )
Q15. The appraisal system in the organization is able to communicate top management
plans and goals effectively.
A B C D ( )
Q16. Superior generally spent time with their subordinate to improve their performance.
A B C D ( )
Q17. The appraisal system helps the employees to gain more insight into their strengths
and weaknesses.
A B C D ( )


The following hypothesis are developed and tested in the present study. The present study
was conducted to figure out the relationship between Productivity and Performance
Appraisal. For this purpose a questionnaire was distributed among the executives which
was to be rated by them. To have scientific view of various variables of productivity and
performance appraisal hypothesis has been framed in this way:

H0 – Productivity and Performance Appraisal depend on each other.

H1 – Productivity and Performance Appraisal do not depend on each other.

Pr = Po OR Pr =/= Po

Statistical Tools

To test the given hypothesis and presentation of survey findings, the appropriate statistical
technique are used i.e. – Mean, Standard Deviation, t-test (Test of significance).

Limitation of the study

• Present study is restricted to RSMML, Udaipur(Corporate office)

• Observation and study is quite limited and could not be explored to various areas.

• Study was limited to the executives only

• Executives (i.e. E7 level) were out of reach because of their busy schedule and
their frequent visits to the site operations.

• The confidential attitude of the organization led a little scope for the study.


Finding of any research work is noting it is simply the inferences drawn from the results
of any analysis work. In the present work whatever, analysis work has been done, on the
basis of that the researcher draws the results and findings safely.

Finding regarding the Productivity-Performance Appraisal dependency

There were total two samples taken for the study one of the sample drawn from the range
of E1 to E4 grade of executives and another sample was drawn from the range of E5 to
E6 grade of executives.

Sample size was 10 from both the Population size.

Overall mean of the E1 to E4 executives came to be 52.3 and the mean of the E5 to E6
grade came to be 50.5, and calculated t value = 0.2377 falling within the acceptance
region (0.05 level of significance). The critical value of t =2.101. Here the H0 (i.e. null
hypothesis) is accepted, which shows that there is a dependency or we can say that there
is a relationship between the productivity and performance appraisal.

All the executives have a same thought over the productivity performance appraisal


Performance appraisal is a process of estimating or judging the values, excellence,

qualities, or status of some person or thing. The same holds true for the organization
under study. The following conclusion is drawn from it:

1. The performance appraisal system in RSMML is promotion oriented.

2. More of the people feel it should be productivity based not promotion oriented.

3. The present performance appraisal system looks like a scientific method, but
still it is not scientific because the ratings are not quantifiable in terms of

4. A fair for all approach is being used by the reporting & reviewing officers.

5. The criterion instituted looks fit for workers not the executives.


Following are certain suggestions are being drawn from the study, observation and

1. The present system should be more transparent and objective.

2. The role of the reporting officer should be played by the immediate supervisor of
appraise, who is in direct contact.

3. There should be a mid term appraisal system to monitor the performance of the

4. Performance appraisal system should be made scientific by introducing the marks

or grades.

5. Executives should be communicated about whatever rating he gets.

6. There should be formal counseling session feedback mechanism not only for
‘Unsatisfactory’ rating but also for other ratings.

7. Performance appraisal system for the workmen should also be introduced. It will
prove to be a motivational tool for delivering the results to the best of their

8. The present appraisal system should be more productivity based not the promotion

9. The trainees should be allotted office work as well so that they can get the
experience of corporate world.

1. Human Resource Management : Gary Dessler

2. Human Resource Management : K. Aswathappa

3. Personnel Management : C.B. Memoria ,S.V. Gankar

4. Fundamentals of Mathematical Statistics : S.C. Gupta , V.K. Kapoor

5. Basic Statistics : B.L. Agarwal

6. Research Methodology : C.R.Kothari

Magazines and Reports

1. Corporate Profile of RSMML

2. Recruitment & Promotion Rules, !991