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INTRODUCTION

Performance Appraisal is the process of obtaining, analyzing and recording information about the relative worth of an employee. The focus of the performance appraisal is measuring and improving the actual performance of the employee and also the future potential of the employee. Its aim is to measure what an employee does.

According to Flippo, a prominent personality in the field of Human resources,

"performance appraisal is the systematic, periodic and an impartial rating of an employees excellence in the matters pertaining to his present job and his potential for a better job." Performance appraisal is a systematic way of reviewing and assessing the performance of an employee during a given period of time and planning for his future. It is a powerful tool to calibrate, refine and reward the performance of the employee. It helps to analyze his achievements and evaluate his contribution towards the achievements of the overall organizational goals.

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ABOUT HINDUSTAN AERONAUTICS LIMITED

Hindustan Aeronautics Limited (HAL) came into existence on 1st October 1964. The Company was formed by the merger of Hindustan Aircraft Limited with Aeronautics India Limited and Aircraft Manufacturing Depot, Kanpur. The Company traces its roots to the pioneering efforts of an industrialist with extraordinary vision, Late Seth Walchand Hirachand, who set up Hindustan Aircraft Limited at Bangalore in association with the erstwhile princely State of Mysore in December 1940. The Government of India became a shareholder in March 1941 and took over the Management in 1942. Hindustan Aeronautics Limited which is familiarly known by the acronym HAL-carries a heavy burden of responsibility towards the Indian Air Force for the HAL factories spread across the sub-continent collectively produce a major proportion of the aircraft upon which they depend to meet their commitments to national defense. HAL has build over 3000 aircrafts of which about 95% are for IAF. From the most advanced combat aircraft, through trainers & transport aircraft to helicopters. HAL with its product & services fully engaged, in providing the backbone around which the IAF has built a tough physical presence, well able to take care of the multifarious tasks demanded of it. Vigorous expansion and diversification of the production range over the past 30 years has certainly
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hastened maturity & the achievement of increasing self-sufficiency has been obvious, although not unnaturally fraught with growing pains. HAL can be considered as an embodiment of the Indian nations aspirations to attain selfsufficiency in modern technologies, as represented by production of aircraft and allied equipment, whilst progressively building up the capability to undertake de novo design & development of aircraft, engines & systems. The present achievements are no more than a stage in a continuing effort towards full hutment of this aspiration. Today, HAL has 19 Production Units and 10 Research and Design Centers in 8 locations in India. The Company has an impressive product track record - 15 types of aircrafts/Helicopters manufactured with in-house R & D and 14 types produced under license. HAL has manufactured over 3658 Aircrafts /Helicopters, 4178 engines, Upgraded 272 aircraft and overhauled over9643 aircraft and 29775 engines. HAL has been successful in numerous R & D programs developed for both Defense and Civil Aviation sectors. HAL has made substantial progress in its current project: Advanced Light Helicopter Weapon System Integration (ALH-WSI) Tejas - Light Combat Aircraft (LCA) Intermediate Jet Trainer (IJT) Light Combat Helicopter (LCH)

Dhruv was delivered to the Indian Army, Navy, Air Force and the Coast Guard in March 2002, in the very first year of its production, a unique achievement.

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HAL has played a significant role for India's space programs by participating in the manufacture of structures for Satellite Launch Vehicles like PSLV (Polar Satellite Launch Vehicle) GSLV (Geo-synchronous Satellite Launch Vehicle) IRS (Indian Remote Satellite) INSAT (Indian National Satellite)

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VISION
To become a Global Player in the Aerospace Industry

MISSION
To achieve Self reliance in Design, Development, Manufacture, Upgrade and Maintenance of Aerospace Equipment, Diversifying into Related Areas and Managing The Business in a Climate of Growing Professional Competence to Achieve World Class Performance Standards for Global Competitiveness

VALUES
CUSTOMER SATISFACTION COMMITMENT TO TOTAL QUALITY COST AND TIME CONSCIOUSNESS INNOVATION AND CREATIVITY TRUST AND TEAM SPIRIT RESPECT FOR THE INDIVIDUAL

INTEGRITY BOARD OF DIRECTORS

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ACTIVITIES
Design, Development, Manufacture, Overhaul of Aircraft, Helicopters, Aero engines, avionics and accessories. Upgrade/Modification of above-mentioned Products to meet emerging needs of the Customer. Diversification into related areas like Manufacture of Aerospace Structures; Manufacture, Repair & Overhaul of Aero-derivative Gas Turbines, Airport Services, etc.

DUTIES
a) To manufacture and overhaul the agreed number of aircraft, aero engines and potables as required by the Defense Services, Coast guard and other customers. b) To progress R & D Projects and Production/Diversification Projects under implementation as per schedule and to initiate new Projects depending on the market and customer requirements.

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c) Effective utilization of the production facilities and skills with suitable restructuring of manpower. d) To manage the business on commercial lines in a climate of growing professional competence.

BUSINESS
The main functions of H.A.L can be summarized as follows: To innovate designs and development of fixed and rotary wing aircraft, avionics and accessories. Manufacture, maintenance, repair and overhauling of Fighter, transport and trainer aircrafts Helicopters Aero engines Accessories Ground support system

Manufacture of structural components for satellite and launch vehicles. Software development for aerospace applications. Design Consultancy

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BASIC OBJECTIVE OF H.A.L.

To serve as an instrument of the National Policy to achieve self reliance in the design development and production of aircraft and Aeronautical equipment, to meet the countrys challenging growing needs with special emphasis on military requirements.

To conduct its business economically and efficiently that it can contribute its due share to the national efforts to achieve a self reliant and self generating economy.

To develop and maintain an organization which will readily respond to and adopt the changing matrix of socio techno-economic relationship and where in a climate of growing professional competence, self discipline, natural understanding, deep commitment and sense of belonging will be fostered and each employee will be encouraged to grow in accordance with his potential furtherance of the organizational goals.

Consistent with the basic objectives of the company, the personnel department of the corporate office has adopted certain specific objectives which will act as a source of inspiration and guidance in evolving Personnel policies and framing rules and regulation for growth and development of employees and to ensure their deep commitment and sense of belongings to the company.

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SPECIFIC OBJECTIVE OF H.A.L.

Ensure the quality of personnel at all levels and provide them the right work environment, Job satisfaction and professional challenges. Provide a healthy blend of employees who have grown with the organization and those selected from outside. Ensure employment of minimum no. of personnel and avoid surplus. Motivate employees to be increasingly achievement oriented. Identify personnel with potential for growth. Provide adequate opportunities for personnel to improve the level of their professional knowledge. Personnel with talent and potential for growth to be developed to shoulder higher responsibilities. Progressively introduce participative style of management. Ensure uniformity in principal conditions of service. Maintain effective communication and harmonious relationship with employees at all levels. Provide for welfare and happiness of personnel at all levels and their families.

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ALLIANCE OF HAL
ALLIED SIGNED AEROSPACE COMPANY, USA. AEROSP ALITE, FRANCE. BOEING, USA BRITISH AEROSPACE, UK . DEFENCE RESEARCH & DEVELOPMENT ORGANISATION INDIA. DORNIER GMBD, GERMANY. FERANU, UK. GENERAL MOTOR, USA. ISRO, INDIA. LUCAS AEROSPACE, UK. MARTIN BAKER.MIKAYON OKB, CIS. NATIONAL AERONAUTICAL LABORATORY, INDIA. ROLLs ROYCE, UK. NORMALIAN GARE'ITE, USA. SAGEM, FRANCE.

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CUSTOMERS OF HAL
INDIAN AIRFORCE / NAVY / ARMY / COAST GROUND.

DEFENCE R&D LABORA TIES / DEPT OF SPACE. STATE GOVT. / CIVIL AVIATION / AUDIENCE FACTORIES /CORPORATE SECTOR. FLYING ACADEMICS / EDUCATIONAL INSTITUTION. AIRLINES / AIR TAXI/AIR CARGO. DEFENCE FORCE OF COUNTRIES FROM SOUTH EAST ASIA /MIDDLE EAST AND AFRICA. COLLABORATOR.

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LICENSOR.AIRCRAFTS DESIGNED & DEVELOPED BY H.A.L.

HT-2Piston PUSHPAK KRISHAK MARUT(HF-24) MARUT TRAINER KIRAN MKI & IA & II BASANT AJEET HPT-32 HTT-34

engine trainer Light Aircraft for flying club Air Observation Post Ground Jet fighter Operational trainer Basic Jet trainer Agriculture Light Flight Piston engine trainer Turboprop Variant

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ORGANIZATION
HAL has eleven-product divisions, they are spread over seven locations. 1. Bangalore Complex: Aircraft Division. Engine Division. Helicopter Division. Overhaul Division. Forge and Foundry Division. 2. Accessories Complex: Hyderabad Division. Lucknow Division. Korwa Division. Kanpur Division. 3. MIG Division: Nasik Division. Koraput Division. 4. Design and Development Complex: Design activity has been further expanded to include Avionics in Hyderabad, Accessories at Lucknow and work has commenced on Helicopter and small Jet Engines at Bangalore.

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HINDUSTAN AERONAUTICS LIMITED ACCESSORIES DIVISION, LUCKNOW.

Lucknow division was formed during 1970, for the manufacture of aircraft instruments and accessories. The foundation stone was laid down by our late Prime Minister Mrs. Indira Gandhi on 8th January, 1972 and inaugurated by her on 17th November, 1973.Initially license agreements were agreements were entered into with the following companies: a)Dunlop of U.K. for wheels and brakes. b) Dowdy of U.K. for under carriage an hydraulic equipments. c) Normalalir carret of U.K., for air pressurization and conditioning equipments. d) Smiths of U.K., SIFM and SFENA for panel instruments and Gyros. e) Marter Bakor of U.K. for ejection seats. f) Lucas of U.K. for engines fuel system. This division was set up with the objective of supplying six types of systems equipment of KIRAN and MARUT aircraft. The division has diversified its product range subsequently and presently manufactures over 500 products for all types of aircraft.

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PRODUCTS OF LUCKNOW DIVISION

Electronics:Static Inverters. DC System Control & Production Units. AC System Control & Production Units. Fuel Management System. Land Management. Gyro-Instruments:Direction Gyros Gyros Horizon Rate Gyro Synchros Hydraulics:Accumulators. Servo Jarks. Gear Pumps. Activators. Motors. Valves. Grand Support Equipments:Roll No: 1012370043 Page 18

Ground Power Unit. Hydraulic Trolleys. Customer Built fuel-Hydraulic Test Rights. Wheel & Brakes:Main Wheels. Nmose Wheels. Carbon Composite Brake pads. Sensors & Switches:Capacitors Type Fuel Content Qualifying Probes. Temptation Sensor & Switches. Presence Sensor & Switches. Conventional Instrument:Altimeter. Vertical Speed Indicator. Jet pipe Temperature Indicator. Electrical:DC Generator. Alternators. Transformer Rectifier Unit. Integrated Drive Generator. Activators.
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Fuel System:Booster Pumps. Heat Pumps. Fuel Pump. Fuel Control Units. Environmental Control System: Cold Air Unit Ventures. Water Extractors. Valves. Precision Manufacturing Capabilities:All Range of NC Machine Up to 5 Axis. Precision Conventional Machine.

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DEPARTMENTS OF HAL (LUCKNOW DIVISION)

Total No. of Employees In H.A.L., Lucknow: 3362. The various departments of HAL, Accessories Division, Lucknow are mentioned below: Office Control Accounts Personnel Transport Medical Security Design GSE MSD Computer

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 Commercial M/C Shop Tool room A/T Production Control MTS Customer service Plant Maintenance Inst Factory GLNS Fuel Factory Material Control Technology Cell AGM (Sectt.) Process shop Rubber Plastic Foundry & Forge

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 Tool Planning DRDL Indigenous cell NC cell Training Civil System audit Administration

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HRD GOAL
The corporate goals of HRD as defined in the corporate plan 1990-2005are as follows:

1) To ensure minimum one potential executive as replacement for each position at all level of HOD.

2) Train, Retain and develop executive and employee continuously in tune with changing environment and organizational requirement.

3) To introduce a scheme to develop multi skill traits amongst employee.

4) To introduce formalization plan for each division for training / retaining in three vital ones viz. composite computer and CNC all of which have a high turnover.

5) To improve the quality of life of HAL employee and their families and fulfill HAL obligation towards the nation.

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PERSONNEL & ADMINISTRATIVE DEPARTMENT H.A.L., ACCESSORIES DIVISION, LUCKNOW

ORGANISATIONAL STRUCTURE AND STAFFING PATTERN OF P&A DEPARTMENT: The existing personnel and administrative department functions directly under Chief Manager (personnel and administrative department) and assisted by a number of managers, deputy manager, Personnel officer, Assistant Personnel officer and Supervisor. The hierarchy of the staff is as follows:
CHIEF MANAGER

MANAGER

PERSONNEL OFFICER

CHIEF SUPERVISOR

CLERK

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SECTIONS OF P & A DEPARTMENT OF HAL AND THEIR FUNCTIONING

The personnel and administrative department has been divided into ten sections-Recruitment section, Establishment section, HRD section, General Administration, Industrial Relations, Legal section, Rajbhasha, Public Relation and Sports, Central Registry and Transportation section. Section wise details and their functioning are as follows:-

RECRUITMENT SECTION:

Recruitment (Scale-I to Grade-III), Promotions Scale-01 to Grade-III

Seniority lists -workmen & officers.

Wages & Salary administration (including initial pay fixation, pay fixation on Promotion, Increments and Salary anomalies etc.).

Ex-Gratia in lieu of bonus and productivity linked annual incentive.

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Re-categorization, inter-departmental transfer and job-rotation.

Maintenance of Direct Recruitment and Promotion Rosters regarding reservation of SC/ST/OBC/PH/Ex-Serviceman.

Absorption of management trainees / executive trainees.

Inter-divisional transfer from other divisions.

Circulation of personal circulars (PCs), issuance of administration, instructions and guidelines.

Matters regarding manpower sanction and planning and organizational structures.

Re-mustering of Sr. prefixed employees

Maintenance of P.B. register incumbent registers.

Public Grievances committee.

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ESTABLISHMENT SECTION:
Confirmation of employees / PAR. Maintenance of personal records of all the employees computerization of personnel Heads as per LT. plans. Resignation/ Termination on grounds of continued ill health / VRS. Finalization / co-ordination of all the dues to the superannuated / resigned cases on the last working day(except death / terminated cases etc.). Forwarding of application outside / within organization. Addition / Deletion of family members of the employees. Interest subsidy cases - house, computer, child education, vehicle. LTC/LTA encashment of employees/ change of hometown. Grant of special allowance to orthopedically handicapped persons. Grant of special allowance to AME license holder. GSLI cases / gratuity etc. School fees reimbursement.

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Reimbursement of conveyance maintenance (car/scooter/moped). Leave cases (LWP/ advance vocation leave/ study leave etc.) Family Planning cases of employees. Property returns of officers in parade I & above. Salary certificate/ NOC for passport etc. Correspondence of old cases. Inter divisional transfers of employees to other division and mutual transfer also. Verification of character (also for employees working insensitive areas in a gap of five years), verification of previous employment and caste (on initial joining). Grant of incentive on acquiring higher education HAL Cycle Allowance.

HRD SECTION:
MIS and other periodical returns on manpower and various other periodical and adhoc reports. Furnishing of information on manpower profile as and when asked for by corporate office. Co-ordination with training deptt. For reports on programs conducted training abroad. Training of P&A officers and staff. Suggestion scheme and suggestion awards & rewards.

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Identification of training needs based on PAR and preparation of training modules. Performance Appraisal report for officers / ACR for workmen. SC/ST cell and its dialogue with the SC/ST association. Co-ordination with training department etc. regarding 'O' & 'A' level examination. Ensuring a minimum of 20 hrs. of training to each employees, officer within 2years functional & personnel deptt. Organizing orientation program for new officer /officers promoted from workmen. Career planning. Computerization of training imparted to each employees/officers.

GENERAL ADMINISTRATION:
Allotment of A, B, C & D type quarters and retention of company quarters. Allotment of quarters to other govt. agencies & its correspondence. Eviction proceedings in case of retention of companys residential accommodation for more than prescribed time by employees in the event of their transfer, superannuation etc. Allotment of shops in shopping complex in HAL township. Execution and extension of bond agreement & realization of rent from post office, Punjab National Bank, Kendriya bhandar and shops of shopping complex of HAL township.

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Issuance and renewal of passport. Clearance of Visa through concerned Embassies. Correspondences with Lucknow Development Authority for follow up of land cases. Correspondence with Lucknow Nagar Nigam & other govt. agencies. Security clearance for foreign customer / visitors. Factory visit for students. VIPs visit to the division. Performance and capital budget of P&A deptt. Arrangement of domestic & international air tickets. Arrangement of night duty by office. Arrangement of hotel accommodation for guests. Providing guest house accommodation to the guest of the division. Insurance coverage & flight returns with M/S Oriental Insurance Company. Payments of bill to travelling agents, Indian Airlines & Air India. Insurance of NOC for non-availability of guest house accommodation. Rail ticket booking. Engagement of part time doctor/ zonal doctor/Para medical staff. Medical committee, reimbursement cases of employees, specialist treatment outside headquarters recognition of hospital for reference and other admin., Matters and policies regarding medical facilities. Computerization activities of the section.
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Preparation deptt. Manual updating, Administrative matters pertaining to security & vigilance deptt. Security contract for HAL Township. Presentation of watch & other gift items.

INDUSTRIAL RELATIONS:
Providing Statutory and Non- Statutory facilities like canteen, creche,transport etc to maintain industrial peace. Dealing with Trade Unions & Officers Association Awarding of Contract for transport, Canteen, Sanitation for Factory & Township, Scooter & cycle stand, Administration of contracts. Compliance of various provisions of Factory Act and Labor laws. Submission of various returns to appropriate labor authorities and also to Corporate office. Workers Participation in Management, Workers education scheme. Matters regarding issuance of uniform/socks and shoes to employees. Grievance redressal procedure for workmen and officers.

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LEGAL SECTION:
To contest the court cases on behalf of the Management in various courts of Law & before other prescribed authorities viz. Supreme Court High court, Labor court, Industrial Tribunal etc. Disciplinary Enquiry in case of officers & workmen. To handle the disciplinary enquiries in case of workmen of the division inscale-1 to scale-10 and in case of officers up to Grade -III (up to Grade-IV in case of minor punishment) Constant Liaison and follow up with the Divisions Legal Advisors/Advocates. To provide legal assistance arid legal advice to different section of P&A deptt. and to other depts. Legal vetting of any contract by our division.

RAJBHASHA SECTION:
Implementation of official language policy of Govt. of India/Corporate office. Promotion of Hindi for use in official work and organizing regular inspection. Grant of Hindi incentives & Hindi allowance etc. Training programs/workshops/seminars in Hindi. Matters regarding Divisional und Nagar level committees for implementation of Rajbhasha.

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Inspection of Rajbhasha Shield and Hindi Utsav etc. Incentive for passing Hindi examinations/Hindi typing/Hindi stenography. Implementation of recommendation of various committees. PUBLIC RELATION & SPORTS: Publication of Divisions House Journal and preparation and forwarding for house magazine ONWARD. Preparation & circulation of press release to media regarding all the activities, events, visits of the division. Drawing PRO action plan and implementation. All the activities of the Division related to sports and Sportsmen. Planning and organizing visits of VIP's duty to the Division, including stay, Transport and seminar etc.

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COMPILATION METHODOLOGY
The approach and methodology that was followed in compilation of this project report on Performance Appraisal System in HAL are described as follows:

Selection of TopicManagement is the process of getting things done by the people and through the people. Amongst all the resources available within the organization, Human Resource is considered as most important and valuable. Organization aims at optimization of output by optimum use of its resources. The soul of the organization i.e. Human Resource can give their best if they are properly groomed and well-directed towards their goal. Their overall development is necessary. The field where the employee lacks and needs development can be decided only when their performance is analyzed or appraised. So, Performance Appraisal plays a vital role in the effective functioning of any organization and that's why I went for this topic.

Selection of OrganizationHindustan Aeronautics Limited, through design, development and production of contemporary aircraft, aero engines and avionics is committed to the defense and civilian needs of the country. HAL is one of the few corporate giants in the world and the only one in Asia, whose capabilities. Extend across the entire range of activities from product conception to after sales support of aircraft technology. HAL, Lucknow follows the modern method of Performance Appraisal i.e.

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Management of Objective and these all factors led me towards joining this organization as a trainee and an opportunity to conduct a research on the PAS in HAL.

Purpose of Study:
In pursuant of Post Graduate in Human Resource course in Gautam Buddh Technical University, there is a mandatory requirement of on the job training for at least one month. I got an opportunity to do my project in Hindustan Aeronautics Limited, Accessories Division .Lucknow. I was given a project to study on existing Performance Appraisal System followed at HAL and recommend additional measures if any for further improvement.

The purpose of my study on Performance Appraisal System is to understand as how these are being implemented in HAL. The aim is to analyze the adequacy and suitability of the measures that are followed.

The purpose of study s also to analyze the Performance Appraisal System in detail by interacting with the management, supervisors and workers and seeing on ground that how far the various measures are implemented and bring out the drawbacks if any and recommend/suggest measures for betterment of the system. While carrying out the analysis due care to be taken to ensure that the analysis is unbiased and without any prejudice to any party.

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THE CONCEPT OF THE TOPIC

In the present - day society human needs are largely satisfied through the economic activities of organized groups and associations. Because of biological and other limitations, no individual or group can afford to be self sufficient and yet attain a high a high level of prosperity. It is, therefore, in their own interest that men should join together and accomplish goals through cooperation. However, to be effective with minimum of adverse consequences, it is essential that group efforts should be properly organized, directed and co-ordination, i.e, here is need for management. Management is the function of getting things done through people and directing the efforts of individuals towards a common objective. It is a process by which responsible people in an organization get things done through the efforts of other people in grouped activities. To make an organization more effective it is essential that the employees put in their best efforts. This requires evaluation of their performance. To evaluate is to assess the worth or value. In social life, we generally evaluate or appraise the behavior of others in relation to our own needs or goals. Appraisals are the judgments of the characteristics, traits and performance of other. On the basis of these judgments, we assess the worth or value of others, and identify what is good and bad. In social life we select a tailor, doctor, architect, or hair dresser through our evaluation of their worth.

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In industry, performance Appraisal is a systematic evaluation of personnel by supervisors or others familiar with their performance because employers are interested in knowing about employee performance. An appraisal of the employee is undoubtedly necessary at the time of his employment. However, an appraisal on a continuing basis is also very desirable and useful. Actually, evaluation is constantly being done although at an unconscious level. Employees evaluate superiors, follow colleagues and subordinates. What is needed to generate proper control is a formal procedure for evaluating personnel within the organization. Such appraisals are at times described as ratings. Here one individual, after comparison with another is ranked or rated as excellent, normal or average. Such personnel or merit or efficiency ratings are generally used for ascertaining an employee's eligibility for promotion. The personnel department, where it exit, can help materially in fixing the qualities and characteristics to be rated, in determining the person who should make such appraisal as well as prescribing the appropriate procedure.

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PERFORMANCE APPRAISAL THEORY

Appraisals are judgment of the characteristics, traits and performance of others. On the basis of these judgments, we assess the worth or value of others, and identity what is good and bad. In social life we select a tailor, doctor, architect or hairdresser through our evaluation of their worth. Formal appraisal of an individual's performance began in the Wei dynasty (A.D.221-265) in China, where an Imperial Rater appraised the performance of members of the official family. In 1983, the New York City Civil Service in the USA introduced a formal appraisal program shortly before World War I.

MEANING OF PERFORMANCE APPRAISAL:

In industry, performance appraisal is a systematic evaluation of personnel by supervisors or others familiar with their performance because employer lore interested in knowing about employee performance. Employees also wish to know their position in the organization. Appraisals are essential for making many administrative decisions; selection, training, promotion, transfer, wages and salary administration, etc. Besides, they aid personnel research. Performance Appraisal thus is a systematic and objective way of judging the relative worth or ability of an employee in performing his task, Performance appraisal helps to identify those who are performing their assigned tasks well and those who are not and the reasons for such performance.
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Appraising the performance of individuals and organizations is an inherent aspect of managing. It is impossible to make intelligent managerial decisions about individuals without measuring their performance in some manner. Hence, formal Performance appraisal is a system set up by the organization to regularly and systematically evaluate employees performance. The purpose of Performance appraisal is to determine what aspects of performance need to be evaluated. A distinction has to between performance on the job and potential for upward mobility. Sometimes, only the potential, i.e. the ability of the individual and his capacity for development is evaluated. However,in most cases raters are asked to assess both areas. It is easier for raters to appraise performance than determine potential for the latter requires a great deal of knowledge and skill. The job environment may not be conducive for an employee to show his full ability; or he may be restrained from doing so. Attention has to be paid to these aspects before the potential for growth and advancement of an employee is evaluated.

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SIGNIFICANCE OF PERFORMANCE APPRAISAL

The effectiveness of staffing function is ascertained by evaluating the performance of employees in terms of job requirements. Performance Appraisal helps the organization in better decision making & planning of manpower in order to make elective and judicious use of resources. It is useful to make number of decisions on personnel management. It provides an opportunity for a systematic review of the employee's performance and an opportunity for formal counseling and guidance, as part of the process of development of the individual increasing his efficiency thereby. Performance Appraisal meets the psychological needs in each of us to know how well or otherwise, we are performing our job .It provides a fair and systematic criticism for salary increases, promotion, transfer or termination. It also assesses training needs and bring about individual and group development. Performance Appraisal develops the Human Relations and so is a .strong tool in Resource Development.

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OBJECTIVES OF PERFORMANCE APPRAISAL

The main objectives of Performance appraisal system are as follows:

1.To integrate the company's and individual goals through a process of performance assessment linked to achievement of organization objectives. 2. To increase awareness of tasks and targets and the responsibility of the employees. 3. To identify the developmental actions to be taken to enhance the performance of employees. 4. To maintain individual and group development by informing the employee of his performance standard. 5. To determine increments and provide a reliable index for promotions and transfers to positions of greater responsibility. 6. To identify those employees for whom additional training IS necessary. 7. To identify those subordinates who deserves higher pay / emoluments. 8. To unable an organization to maintain an inventory of the number and quality of all managers and to identify and meet their training needs and aspirations. 9. To suggest ways if improving the employees performance when he is not found to be up to the mark during the review period. 10. Lastly, to ensure an objective assessment of potential and performance.

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UTILITY OF PERFORMANCE APPRAISAL

Performance appraisal is an important tool of personnel management. It is a judgment of the characteristic, traits and performance of employees and has a wide range of utility.

(a) Identifying employees for salary increases, promotion, transfer and lay-off or termination of services. (b) Determining training needs for further improvement in performance. (c) Motivating employees by indicating their performance levels. (d) Establishing a basis for research and reference for personnel decisions in future. (e) It unifies the appraisal procedure so that all employees rated in the same manner. (f) It provides information in the form of records about ratings which may be produced as evidence. (g) A periodic and accurate appraisal constrains a supervisor to be alert and competent in his work.

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ADVANTAGES OF PERFORMANCE APPRAISAL

The benefits that arise due to Performance appraisal system for the organization, appraiser and appraise are mentioned below: For the organization: 1. Improved performance throughout the organization due to More effective communication of the organizational objectives and values. Increase sense of cohesiveness and loyalty. Improve relationship between managers and staff.

2. Improved over-view of the tasks performed by each member of staff. 3. Identification of ideas for improvement. 4. Training and developmental need can be identified more clearly. 5. A culture of continuous improvement and success can be created and maintained. 6. People with potential can be identified and career development plans formulated to cater for future staff requirements. 7. The message is conveyed that people are valuable.

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For the Appraiser

1. The opportunity to develop an overview of individual jobs and complete departments. 2. Identification of ideas for improvement. 3. Increased job satisfaction. 4. The opportunity to link team & individual objectives and targets with departmental and organizational activities. 5. The opportunity to clarify the expectation of contributions of the manager expects from teams and individual. 6. The opportunity to re-priorities the targets. 7. A mean of forming a more productive relationship with staff based on mutual trust and understanding. For the appraisee 1. Increased motivation. 2. Increased job satisfaction. 3. Increased sense of personal value. 4. A clear understanding what is expected and what is to be done. 5. The opportunity to develop work problems and how they can be overcome. 6. Improved working relationship with the managers.

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REQUIREMENTS OF EFFICIENT APPRAISAL SYSTEM

Validity Reliability Sensibility Practicality Acceptability

PROBLEM OF CRITERION
Differentiating between individuals is easy provided one knows what aspects to take into account. Although the identification of relevant measures of performance or criterion variables has been thoroughly researched. A very broad definition of criterion is that which is to be predicted. This definition refers to the evaluative standards which measure a persons performance, attitudes, etc. Identifying performance measures is easy if the job is clearly defined but difficult if it is broad. At the lower levels of organization, there are specific jobs, and certain tangible and objective standards of performance can be identified. Further up in the hierarchy, jobs become more complex and dear-cut, tangible standards of performance are difficult to be specified. Irrespective of the level, by and large, most companies use eleven performance

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measures: quantity of work, quality of' work, waste and breakage, money earned, job knowledge, job tenure, absenteeism, rate of advancement, self-judgment, judgment by peers and judgment by supervisors. These measures can be classified into three broad categories:-

Personal Data This includes personal history, number of grievances, number of times one has been absent, accidents, breakages, etc., all of which are often use to differentiate between good and bad performers. Most studies have worked backwards, i.e. after identifying good and bad performers they studied what personal variables made them good or bad performers. However, there is little evidence to suggest that personal data can predict job performance. A person can be a good worker and drink or gamble at the same time. In view of the conflicting evidence; it is extremely risky to use personal data as an indicator of performance. In fact, several studies suggest that the relationship between personal data measures and production measures is often very low. Thus, if these factors are used to define job success they should be considered relevant criteria in their own right, rather than simple substitutes for more direct measures of job productivity.

Production Data Rate and quality of work, and money earned, and direct measures of performance. These can range from units produced per hour to money earned or lost. Production data are useful for evaluating the performance of people only in some jobs and at some levels. Staff jobs vis-a-vis line jobs, higher- level jobs vis-a-vis lower-level ones, and performance in service organization vis-a-vis production or engineering organization are difficult to evaluate if production is the only
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thing to be considered. Correlations on the reliability of production data have been found to range from 0.05 to 0.85 with the magnitude influenced by the time periods between measures. Hence, a one-shot sample of production data can be very misleading. To get a correct picture of production and output, several samples over a number of time periods should be taken.

Judgmental Data These include self-judgment, judgment by peers and supervisors, and sometimes knowledge of the job. It is one of the most, commonly-used indicators of performance, and probably the most loaded, with errors and problems. Most of the problems arise because it is based on subjective assessment either by the individual or by another individual for him. It is almost impossible to objectify subjective judgments, The difficulty of using this indicator can be gauged merely by giving two persons an answer to an essay test, and examining the reasons for their evaluations, the evaluations will of course vary.

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PERFORMANCE APPRAISAL METHODS

A number of performance appraisal methods are available. In fact, each organization has its own. However, a close analysis of their appraisal forms reveals that they represent variations of one or other of the following methods of performance appraisal. TRAITS METHODS: 1. Confidential Report This is the traditional way of appraising employee performance. A confidential report by the immediate supervisor is still is a major determinant of the subordinates promotion or transfer. The supervisor writes about paragraph on his subordinate's strengths, weaknesses, intelligent t attitude to work, attendance, conduct and character, work efficiency, etc. The format and pattern of the report varies with each supervisor.

2. Rating Scales These methods assess the degree of certain qualities required for the job such as industrious, reliability and dependability. The degree is usually measured on a scale which can vary from 3 point (good, average & poor) to several points. The anchor points in most cases are labeled excellent-poor, high-low or never-always, depending on the format. The general notion that ratings are objective must be regarded with extreme caution. There is no objective procedure.

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These ratings need to be validated against other methods of evaluation. Human behavior is complex, and traits such as job knowledge, experience, ability to get things done, etc., are hardly independent of each other .Besides, each may be a composite of simpler traits. The validity of the rating also depends on the rater's characteristics. 3. Ranking System One of the disadvantages of the rating system is that it perm its similar totals scores fur two or more individuals the raking system obviates this problem. The rater simply ranks employees in order or merit, which determines the employee's rating. Ranking van be determined either by looking at the total individual and then ranking him in relation to others; or by first identifying several relevant traits I ranking employees separately on each of these traits I and then cumulating these trait-rankings to arrive at the final employee-rankings. 4. Paired Comparison This method is much simpler, requiring the rater to judge which of two workers is superior, instead of having to arrange members of a large group of workers in order of excellence. It makes the rater compare one employee systematically with others individually. Usually only one trait, the overall ability to perform the job, is considered. The supervisor is provided with a bunch of slips each containing a pair of names. The rater puts a tick mark against the individual whom he considers the better of the two, and the final ranking is determined by the number of times that individuals is judged better than the others.

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5. Forced Choice The forced-choice rating form contains a series of groups of statements, and the rater checks how effectively the statement describes each individual begin evaluated. Of course, each statement carries a weight which is not indicated to the rater. This basic method has a number of variations. Sometimes all the statements may be either favorable or unfavorable. In another variation, from four statements -two positive and two negative -the rater picks the most appropriate and the most inappropriate, for the person being rated .Sometimes, instead of making statements, a simple listing or traits is given. 6. Critical Incident This technique involves three steps. A test of noteworthy (good or bad) on-the-job behavior, usually of specific instances, is first prepared. A group of experts then assigns scale value to them, depending upon the degree of desirability tor the job. The third step is constructing a checklist that includes incidents which define good and bad" workers. Subsequently, supervisors use these list for evaluating the worker. 7. Cost Accounting This menthol evaluates performance from the monetary returns the employee yields to his organization. A relationship is established between the cost involved ill keeping the person, and the benefit the organization derives from hint.

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8. Forced Distribution In this method the rater is forced to distribute his subordinates into performance categories such as outstanding, good, poor, etc. In other words everyone cannot be given average or good ratings. Hence e some percentage of the subordinates are rated better than the others. The rater distributes his subordinates on scale location which can be top 10 percent to bottom 10 percent, or any variation of the percentages with the values in between. The most-often used distribution is 10, 20,40,20,10, percent, which equates with a normal distribution. This method is useful for rating a large number of employees.

MODERN METHODS:
9. Management by objectives MBO calls on the subordinate to set his short-term performance goals in consultation with his superior. Goals explicitly state the actions which the employ will follow. Instead of being appraised in a traditional way by his superior, the subordinate appraises his own performance by evaluating it vis-a-vis the goals: Before establishing a goal, the individual studies his job, assess his potentialities and formulates some specific plans to reach the goal. The supervisor is not the evaluator, but directs the goal-setting processes to ensure that it matches the objectives of the organization.MBO differs significantly from the traditional approach, for it shifts the emphasis from appraisal to analysis. The .subordinate is no longer examined by his superior for his weaknesses, but examines himself to ascertain his strength and potential.

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10. Managerial Appraisal This approach to Performance Appraisal involves evaluation of managers in terms of the basic functions and tasks of management. The logic of such appraisal ought to be against standards which measure the quality of a manager, as a manager. With a given classification of the function a series of questions are asked to appraise a manager's performance in each area. 11. Appraisal interviews Many organizations require their supervisor, managers, and other raters to have a periodic discussion with employees about their performance, and particularly to communicate any negative evaluation so that the employee gets a chance to explain. This takes care of the process of natural justice. Norman Maier has described three appraisal interviews each with a specific and slightly different objective:

To Tell And Sell Method To Tell And Listen Method The Problem-Solving Approach

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PROBLEMS IN PERFORMANCE APPRAISAL None of the methods of performance is absolutely valid or reliable. Each has its own strength and weaknesses. Some of the common problems are: Halo effect Error of Central Tendency Opportunity bias Group characteristics bias Knowledge of predictor bias Bias In ratings

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THE PERFORMANCE APPRAISAL SYSTEM AT HAL

The existing performance appraisal system as well as the format in respect of officers has been reviewed. It has been decided to introduce a revised performance appraisal system effective from' the assessment year 2000-01). As per the reviser system, officers in Grade 1 to X have been categorized into 5levels as follows: LEVEL LEVEL-I LEVEL-II LEVEL-III LEVEL-IV LEVEL-V GRADE I & II III & IV V & VI VII & VIII IX & X

Some of the salient features of the revised performance appraisal system are as under: 1.Two tier system (IA & RA) 2. Quarterly task setting and evaluation on a quarterly basis. 3. Traits based on the responsibilities associated with each level. 4. Self-appraisal, Management Review Categorization & identification of Training and Development needs, both by IA & RA.

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1. FILLING UP OF THE FORMATS

The format comprises of nine major parts as under:

Part Cover page PART-A PART-B

Contents Bio-data of the appraise

Quarterly task setting and assessment Self appraisal Comments on self appraisal & integrity

To be filled by:
Appraisee Appraisee Appraisee

PART-C PART-D

Assessment of Traits Qualitative assessment of the Appraisee (Pen Picture)

IA & RA IA & RA

PART-E

General Assessment & Management Review Categorization

IA & RA

PART-F PART-G PART-H PART-I

Training & Development needs Evaluation by Review Board higher authorities Illustrative list of area for training Check list

IA & RA IA & RA PRB GM/MDFD/CH

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2. QUATERLY TASKS & ACHIEVEMENTS:

The performance Appraisal system envisages setting up quarterly between the Appraisee and IA. The set tasks would be recorded on the quarterly task setting and assessment sheets. At the time of setting the tasks, the IA may consult the RA also.

Quarters for the purpose of PARs would be as follows:

QUARTER
I II

PERIOD
1st April-30th June 1st July-30th September

III

1st Ocober-31st December

IV

1st January-31st March

Task setting for each quarter is done, jointly by the Appraisee and the IA, by the 7th of the month of each quarter. The maximum of 100 are distributed among all the tasks, based on their relative weightage / importance, separate task setting and assessment sheets are used for each quarter and the same is signed by both the appraisee and the IA. The task setting sheets are prepared in duplicate and one copy is kept with the appraisee and the other with the IA.

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The tasks set should, as far as possible be quantitative or measurable either in terms of quantity or time limits. The IA evaluates the performance of the appraisee, by 7th of the first month of the subsequent quarter, after joint discussion with the appraisee, against the set tasks, they award marks for each tasks, keeping in view the maximum marks decided for each tasks at the beginning of the quarter. Completed task setting and assessment sheet of each quarter is retained by the IA and the same is attached by him with the Annual/Probationary PAR at the end of the assessment Year/Period.

3. SELF APPRAISAL:
All Officers should assess themselves in Part B (B.1, B.2 & B.3) of the appraisal format, Self appraisal is aimed at providing Officers an opportunity to assess their performance against mutually agreed tasks. Self appraisal should be brief and to the point. Comments on the self-appraisal by the IA & RA are to be made in the space provided (parts B.4 & B.5). Self-appraisal by Officers should also be taken into account by the IA 7 RA, while making the assessment in Part-C of the format.

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4. LEVEL OF INITIATING / REVIEWING AUTHORITIES:

Level of the IA & IIA for officers in various grades would be as follows:

Grade of the appraise I/II

Initiating authority Minimum grade III or above

Reviewing authority Minimum grade V or above Minimum grade VI or above Minimum grade VIII or above Minimum grade X or above CH

III/IV

Minimum grade V or above

V/VI

Minimum grade VII or above

VII/VIII

Minimum grade IX or above

IX/X

MD/FD

Note:I) While the levels of the IA & RA ,in general, should be as above, if the Appraisee is reporting to officers at lower levels, the IA & RA can be in lower grades also.

II) In the case of officers who are directly reporting to senior Executives in Grade VII / VIII / IX / MD / FD / CH and where there are no intermediate Officers, the concerned senior executive will be the IA / RA except in cases which have been specifically mentioned in the circular.

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5. ASSESSMENT OF TRAITS:
Skills required to be possessed by an officer vary as he moves from one level to the next. Keeping this aspect in view, separate set of traits against which Officers are to be assessed have been devised assessment of the traits have to be made indicating marks scored for each traits out of the maximum marks allotted for each traits both by the IA & RA. For the first trait (performance), marks awarded by the IA will be the equivalent % of the average marks for the year awarded by him in part A.

6. SCALE OF GRADATION:
Total marks Performance Rating 100-90 Exceptional 89-80 Above Average 79-50 Average Below 50 Below average

Overall performance rating to the PRB will be based on the above scale of Gradation.

7. PEN PICTURE (QUALITATIVE ASSESSMENT):

Both IA & RA have to give a brief description of the Appraisee at Part-D of the format, as pen picture. The Pen Picture should be written carefully highlighting all aspects of the personality of the appraisee. By reading the Pen Picture, one should be in a position to get a clear picture of the appraisee, his effectiveness and his personal qualities. The IA & Ra should use this part of the appraisal report to narrate about the traits of the appraisee that are not covered under specific traits under Part C.1
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8. GENERAL ASSESSMENT & MANAGEMENT REVIEWCATEGORIZATION:

Both the IA & RA have to indicate the Management Review Categorization of the appraisee, which forms the potential assessment area of the performance appraisal system, as follows:

Cat-A: An officer who has degree of potential for development.

Cat-B: An officer has potential for limited advancement.

Cat-C: An officer who has no potential advancement.

While indicating the Management Review Categorization, the IA & RA should take into account the educational qualification of the appraisee, variety and richness of experience, job knowledge, effectiveness, personal qualities and his performance on various assignments. The assessment should also be made for officers on probation.

9. TRAINING / DEVELOPMENT NEEDS:

Both the IA & IIA should indicate specific areas to which the appraisee should be job I rotated as well as training to be given to prepare him for further advancements. An illustrative list of areas for training and development is at Part-H of the PAR format.

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10. PERFORMANCE REVIEW BOARD:

Performance Review Board will be constituted at the Divisional /Complex / Corporate level for determining the Final Marks / Performance rating of the appraisee, taking into consideration the assessment made by the IA & RA. The PRB will consults the IA & RA, wherever necessary, if they are not members of the PRB. Chairman and member of the PRB would be as indicate below: Level I Grade I/II Chairman of PRB Senior most AGM/DGM in the division Members of PRB Others AGM/DGMs/HODs in the Division &HRD representative II III/IV GM/divisional head AGM/DGMs/HODs in the Division & HRD representative III V/VI MD/FD GMs of the Division &HRD representative IV V VII/VIII IX/X CH CH MD/FDs MDs/FDs

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11. REMARKS BY HIGHER AUTHORITIES:

GMs/MDs/FDs/CH would indicate their general remarks in Part-G of the format.

12. PERFORMANCE APPRAISAL OF OFFICERS ON PROBATION:

Two performance Appraisals are to be submitted one at the end of sixth month and the others at the end of the eleventh month of the probationary period Officers Formats to be used and system to be followed for filling up the format to be used and system to be followed for filling up the formats would be the same as in respect of Annual Reports. Probationary Performance Appraisal Reports would not be put up to the performance Review Board Marks / Performance Rating awarded by the RA would be final in respect of these reports. These reports would however, be put up to higher authorities for their remarks at Part-G. The RA should ensure that the sixth and eleventh monthly reports are submitted to the HRD cell within 7 days of the completion of the sixth and eleventh monthly period.

The sixth / eleventh monthly performance appraisals would be the basis for confirmation of
Officers appointed / promoted. The report should therefore indicate the suitability or otherwise of the officer for confirmation by the competent authority, in the eleventh monthly report.

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13. ASSESMENT PERIOD:The performance appraisal form for all officers is to be prepared for every financial year ending 31st March. The activity chart on the operation of PAS is as follows:

Concerned Activities deptt./officer I,II & III Appraisal to be sent to initiating authority Report to be put to MDs performance Review committee Report to be forwarded Deptt. Deptt. Deptt. 2nd week of March

Grades and due dates

IV

V & VI

VII & above

2nd week of March

2nd week of March

2nd week of March

2nd week of March

2nd week of May

2nd week of April

2nd week of May

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14. FEEDBACK SYSTEM:

All Officers who have scored final marks of below 50 & rated as Below average would be intimated in writing about the same, through the concerned Division / Office, as follows:

Officers in Grade VII and above V / VI I to IV

To be intimated by Corporate office Complex office Division office

This communication would be signed by the Head of the P&A department at Corporate Office / Complex Office / Division Office. In addition to the above, oral feedback by the Appraisee, on his performance, should be an ongoing process. It is necessary to encourage progress and correct mistakes. The Apparisee should be encouraged and the areas requiring immediate attention for improving his performance should be highlighted. The IA should inform the Appraisee in writing as and when the need arises.14(d) Further to the feedback / communication as above, the HRD cell should ensure communication of the areas /traits for improvement, if any, to the Appraisee, after the report is completed by all concerned. Such communication would be issued as follows:

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1. For Officers up to including Grade IV: The HRD cell of the respective Division / Officers would identify the cases where feedback is required and would ensure that necessary communications are issued to the Officers, through the IA/RA.

2. For Officers in Grade V & VI: The HRD cell of the Complex offices will identify the cases where feedback is required to be given and would communicate the same to the Officers concerned through the concerned Division Office. 3. For Officers in Grade VII & above: Corporate office will identify the cases where feedback is required to be given and would communicate the same to the Officers concerned, through the concerned Division Office, with a copy of the Complex Offices.

15. PROCEDURE FOR EXPUNGING REMARKS ON AREA FOR IMPROVEMENT:

If any officer is aggrieved by the communicate for improvement is certain areas traits as reflected in his performance appraisal report, he could represent against the same.

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 15(b) The authorities competent to consider and dispose of their presentation would be as under:

Officers in grade I/II/III/IV V/VI VII & above

Competent Authority Concerned GMs Concerned MD/FDs Chairman

Competent authority would examine such representations on the basis of the relevant records and material available and may also consult the IA /RA. If the Competent authority is convinced that the observation was unjustified, he may order exploring such observation from the Officers report.

Where the GM himself is the IA/RA, the MD/RD will be the competent authority to dispose the representation and the Chairman will be the competent authority if the IA/RA is the MD/RD.

Suitable remarks to the effect that such observations have been expunged are to be made by the Competent Authority in the Performance Appraisal Report, at the place where the remarks are expunged.

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16. ROUTING OF THE REPORT: Completed performance appraisal reports of Officers in grade I& II will be maintained by the concerned Division. Complex Officers will maintain reports in respect of Officers in Grade III to IV. PARs in respect of Officers in Grades VI and above should be sent to Corporate.

While forwarding the performance appraisal reports of Officers in Grade VI & above to the Corporate office, the following procedure should be followed: I. Reports in respect of Officers in Grade VIII & above should be sent to the Director (Personnel). II. Reports in respect of Officers in Grade VI & VII should be sent to the GM (P&A). III. The envelope containing the PARs VI & VII should be marked "Confidential" and to be opened by the addressee only.

17. APPRAISAL ON OFFICERS IN VIGILANCE DEPARTMENT:

Performance appraisal in the Vigilance Department will be raised as indicated below :

1. Executive Director (Vigilance), Corporate office, will be the IA in respect of Heads Of Vigilance Department in the divisions. 2. Executive Director (Vigilance) will also be the RA in respect of He.ids of Vigilance department in the Divisions /Officers up to and including Grade III. Chairman will be the Ra in respect of Heads of Vigilance Department in Grade IV & above.

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3. In respect of officers of Vigilance Department who are working under the Heads of Vigilance in each division/office, ED (Vigilance would be the RA).

18. APPRAISALS ON OFFICERS OF SYSTEMS OF AUDIT DEPARTMENT:

18(a) Head of Systems Audit at Corporate office will be the IA in respect of Heads of Systems Audit cell in the Divisions. 18(b) Heads of Systems Audit at Corporate office will also be the RA in respect of Heads of Systems Audit Cell in the Divisions who are in Grade Ito III. Director (Finance) will be the RA in respect of Head of Systems Audit cell in the Divisions in Grade IV & above. 18( c) In respect of officers in Systems Audit who are working under the head of the Systems Audit cell in the divisions, Head of Systems Audit corporate office would be the RA. In respect of such officers in Grade IV& above, Director (Finance) would endure his views in Part G of the format.

I 8(d) After the reports are filed in as at Head of Systems Audit at corporate office would also complete the column of evaluation of performance Review Board at part G of the report.

18(e) Completed reports would be sent back to concerned Division /office by the Head of Systems Audit at corporate office, for retention.

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18(f) Administratively Heads of Systems Audit cell in the Divisions/Office would continue to report to concerned General Manager.

19. APPRAISAL ON HEADS OF FINANCE AND PERSONNEL & ADMINISTRATION IN THE COMPLEX /DIVISION
19(a) In respect of Heads of Finance, IMM and P&A in Grade VII and above in the complex officers, MD would be the IA and chairman would be the RA. In respect of such officers in Grade VI and below, concerned MD would be the IA & RA.IN respect of Heads of Finance, IMM and P&A. In all such cases, the concerned functional director at corporate office would indicate Ids remarks at Part G of the format.

20. MAINTAINENCE OF PERFORMANCE APPRAISAL RECORDS:

20(a) An up to date bio data of the officer should be kept as the first sheet in the PARs of each officer. A recent passport size photograph should also be affixed on the inside front of the PARs.

21. CHECK BY HRD CELL:

21.1 Part-I of the Performance Appraisal provides for the check list to be checked and signed by the officer in charge of the HRD cell. The officer checking the filling of the form should check the Discrepancies /Inconsistencies, if, any, and guide the Appraisers so that the Appraisal System serves the purpose for which it is constituted.

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TIME SCALE PROMOTION FOR EMPLOYEES IN WAGE GROUP A,B,C,D,E&F

With a view to provide an assured minimum career to the workmen in wage GroupA,B,C,D,E&F and to ensure that the career opportunities of workmen do not differ widely from trade to trade and from division to division. The following schemes of time promotion for the workmen has been introduced from 1/1/1985.

(a). The promotions under the time scale promotion to scheme will be in addition to the vacancy based promotion appointment.

(b). Workmen in wage group -A,B,C,D,E&F will be eligible for time scale promotion to the next higher group provided they have completed on satisfied dates uninterrupted year of service in their groups.

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ANALYSIS OF PERFORMANCE APPRAISAL SYSTEMAT HAL

The objective of the Performance Appraisal System in HAL is to change behavior attitude towards job done. In other words it is result oriented. It has adopted a philosophy that stresses on goal rather than method. It provides responsibility and accountability recognize that employee have needs for achievement and self-fulfillment. The PAS of HAL staff is purely based on the method of Management by Objectives which was propounded by Peter Drucker. HAL has developed potentially a powerful philosophy of managing and an effective way of operational evaluation process. It seeks to minimize external control and maximize internal motivation. In HAL Performance Appraisal format, part B of format provides opportunity to the appraisee for self-appraisal in which lot of research has been done to enable the review himself. It enhances their sense of dignity & self-respect. Analysis of the research is based on the feedback received from the staff through questionnaire. A total of 14 questions were distributed in the form of questionnaire which basically concerned the employees (workers).A set of 5 questions in the forms of self-rating chart was circulated, especially meant for supervisors.

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Managements View Regarding: The Performance Appraisal Forms

According to the management the Performance Appraisal forms are basically well-designed, well formulated and caters the need of appraisee as well as that of appraiser to make the things easy for the appraiser and for the more accurate and proper assessment of the appraisee, a help -matrix is provided with the PA forms which gives the detailed description for each trait for different grades. They believe that the P A forms are slightly subjective and could be made more objective and brief so as to save time in filling up the forms.

Management's view regarding Self-Appraisal:

Management regards it as a very healthy source or indirect communication between juniors and seniors. Through it, the officer communicates to their seniors who are finally going to assess them that actually they perceive about themselves.

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Research Methodology and Collection of Data

Research Design: Descriptive Study.

Data Type: Primary data/secondary data.

Research Instrument: Questionnaire

Sample Area: Factory Campus

Sample Size: 50

Sample Procedure: Judgment Sampling

Sampling Method: Personal Survey Method Through Preparation Of Questionnaire

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The research work was carried out by visiting the various sections of the P & A department of HAL: Recruitment section HRD section Establishment section Industrial Relations & Welfare Legal section General Administration Rajbhasha Various techniques used in this survey are as under: 1. Observation: Actions speak greater than words. So, close, systematic and conscious observation was carried out to detect their favorable and unfavorable attitudes. Close observation of employees was carried out by sitting with them at their work places such as office and workshop and keenly observing them doing their work. 2. Studying and Analyzing Service Records: The service records like output, quality, discipline, discharge & dismissals, accidents, absenteeism, Grievances, records of individual and departments were pursued.

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3. Journals and Manuals: The yearly journals and manuals were supplied by various departments and gone through it deeply. Information regarding history, achievements and PAS etc. was extracted from these manuals. 4. Informal Interviews: The opinion of various categories of employees was obtained informally while chatting with them at their work place. Informally employees were quite forthcoming in their replies and expressed their views concerning them. The views expressed were without any inhibitions. 5. Formal Interviews: Some categories of employees were formally interviewed bases on the structured questionnaire. 6. Questionnaire: A set of questionnaire was prepared and distributed to the employees and the analysis was based on the responses received from these questionnaires. 7. Internet: Lot of information and photographs were obtained from the official website of HAL; (WWW.hal-india.com.)

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QUESTIONNAIRE
REPRESENTATION OF REPLIES BY GRAPHS AND CHARTS
STATEMENTS AGREE PARTIALLY DISAGREE NEUTRAL AGREE 1.You are aware that PAS exits in your organization 2.PAS provides opportunity to improve 3.Satisfied with the present PAS 4.You are assisted and guided by superiors in your work 5.You are informed about the tasks and goals to be achieved 6.You are counseled by your superior 7.You get feedback about your performance 8.You get proper training to improve your weak areas. 8 4 34 4 14 17 9 10 17 5 20 8 19 10 13 8 29 22 0 8 17 15 4 5 10 2 31 7 46 2 2 0

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SUPERVISORS SELF-RATING CHART (%)

Supervisory activities and Results 1.Each employee knows what is expected in quantity 2.I get my employees in matter that affect them 75 25 0 0 Excellent 0 Good 100 Fair 0 Poor 0

3. 3.I delegate responsibility, encourage

employees to ask questions and attend training courses. 4.I try to become better acquainted with my employees 5.I give adequate attention to the work environment &strive to improve both the

75

25

75

25

35

35

30

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mental & physical conditions

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1. Which performance appraisal method does your company adopt?

1. Confidential report 2. Fair comparison 3. Ranking system 4. Rating scales

Interpretation: 70% of the employees answered confidential report, 20% said fair comparison method is used, 6% said ranking method is used and 4% said the company uses the rating scale method.

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2. Are you satisfied with the method used?

1. Yes 2. Partly 3. No

Interpretation: 50% of the employees were not satisfied, 30% of the employees were partially satisfied, and 20% were satisfied.

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3. What are the main criterias while doing performance appraisal?

1. Employee working in that period. 2. Employees past work. 3. Output given by them. 4. Cant disclose.

Interpretation: 20% of the employees think it depends on their working in the present period,15% think it depends on their past work, 40% think it depend on their output given by them, and 25% didnt disclose.

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4. Do you get any kind of benefit?

1.Yes 2. No

Interpretation:70% said that they do get benefit but 30% said they dont feel so.

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5. What are your views for companys present performance appraisal program? 1. For training 2. For motivating 3. Didnt reply

Interpretation: 65% employees said it is good for training purpose, 25% said it is good too motivate the employees, and 10% people were clueless.

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7. Can you suggest any new method, which can be used for performance appraisal? 1. 360 degree performance appraisal 2. Critical incident method 3. Rating scales

Interpretation: 70% employees suggested that 360 degree performance appraisal method should be followed, 20% suggested the critical rating method and 10% suggested the rating scale method.

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8. Do you think new method will be beneficial for the company? 1. Yes 2. No

Interpretation: 80% employees said yes the new method would be beneficial, 20% said no it not prove beneficial.

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9.What are the benchmarks for measuring the performance? 1. Employees work returns 2. Time spent in factory 3. Companys policies and returns

Interpretation: 40% employee work return, 40% Time spent in factory,20% Companys policies and returns

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FINDINGS
On the basis of the analysis we can conclude that majority or the employees are satisfied with the Performance Appraisal System adopted in their organization i.e. HAL. Large section of employees has commented that they do not receive proper feedback, counseling and training to improve upon their performance. This is in contrast with the supervisor's responses, who are of the opinion that full attention is paid in each of these fields. Employees feel that the Performance Appraisal system should be simpler and f1uble.There is no doubt that in saying that HAL follows the method Management By Objectives as employees are aware of their predetermined goals & tasks which they have to achieve.

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Roll No: 1012370043

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LIMITATIONS
Of the project
Due to lack of time & interest the respondents, were not very co-operative in filling the questionnaire as a result of which the results would be biased to an extent. Some respondents gave vague information.

Disinterest

shown

by

some

respondents

to

give

response

to

the

questionnaire.

Preparations done for the survey

The interview schedule prepared for the management people was a short one with all open-ended questions so that their ideas can easily be known.

The questionnaire prepared for the workers were very simple and easy to answer. For getting the responses from the management we interviewed them through a very small interview schedule after seeking their permission.

Then all the questionnaires and interviews were analyzed.

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Roll No: 1012370043

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SUGGESTIONS
A pre-determined set of standards of performance level should be made in the beginning. Clear cut indication must be given to the appraisee about what is expected from him/her. Organizational goal or tasks should be conveyed to every employee in advance. Both strengths and drawbacks should be communicated to the appraisee. Channel of communication should be completed should be given to the appraisee. For further improving the performance of appraisee a review counseling session should be held at regular basis. Training, if required, should be given the priority. Sense of self-appraisal should be culminated in the employees also. Aptitude test and other such tests should be held to determine the potential of the employee for the further advancement. Psychological tests should be held to measure the level of motivation in the employees.

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Roll No: 1012370043

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CONCLUSION
Performance Appraisal Is a systematic and objective way of judging the relative worth or ability of an employee in performing his task. Performance Appraisal helps to Identify those who are performing their assigned tasks well and those who are not and the reasons for such Performance Appraisals are essential for making many administrative decisions like Performance Appraisal System selection, training, promotion, transfer, wage and salary administration, etc .In H.A.L. a lot of work has been done in the in the area 0 f Performance Appraisal system. In the early nineties a drastic change was introduced in the appraisal system. The present Performance Appraisal system is methodically devised and meticulously planned. The main objective of the system is the fulfillment of organizational goal through catering the needs of the employees. The essential prerequisite in Performance Appraisal is that executives and organization have to pay a great deal of attention to the psychological and human aspect of management. A great deal of understanding and time is necessary to know people, their motives, behavior .actions and to learn a right kind of motivational tools to help them to achieve not only organizational goals but also their individual goals. Gaining insight into human behavior and personality is an exciting and constant challenge. Managers and organizers by the nature of their work, have a great responsibility to study and learn about the motivational theories, systems and tools in order to be a discriminating while using the right kind of motivational tool in the right situation for the right individual. Thus we can sum UJ. by adhering to the fact that Human Resource are the soul of an organization and the most important and versatile resource available and the Performance Appraisal system is a strong tool in the development of Human Resources.

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Roll No: 1012370043

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BOOKS AND SITES REFERRED:

Dr. C.B. Gupta: Human Resources& Personnel Management.

C.B Momoria & S.V Gankar: Personnel Management.

www.hal-india.com

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Roll No: 1012370043

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QUESTIONNAIRE
1. Name: 2. Age: 3. Nature of work: 4. Job title: 5. Department name: 6. Monthly income: Below 5000 5000-8000 8000-10000 7. Do you know about performance appraisal? Yes No

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8. Which method of performance appraisal does your company adopts? Confidential report Fair comparison Ranking system Rating scales 9. Are you satisfied with the method used? Yes No Partially 10. Who are performance raters? Manager Group leader Coordinator Supervisor Peers

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11. Are you satisfied with them? Yes No 12. Do you want it to be regularly held in your company? Yes No 13. Is there any increase in salary after the performance appraisal is held? Yes No 14. Do you get any other kind of benefit after performance appraisal is held?(mention)

15. Your view regarding the companys present performance appraisal system.

16. Any other suggestions you would like to give in respect of performance appraisal program?

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Signature

Date

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