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SUMMER TRAINIG PROJECT REPORT

ON

Performance Management System


In
Bharat Heavy Electrical Limited
HERP Varanasi

SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD


OF MASTER OF BUSINESS ADMINISTRATION

SUBMITTED
TO:-

SUBMITTED BY:Vakil Kumar Yadav


Roll No. : 1474770044

Ms. Divya Vats


ASSISTANT PROFESSOR,

Affiliated to UPTU, Lucknow

PREFACE
Learning categorizes us and practicing on that learning specialize us.
Theoretical concepts taught and discussed in the classroom prove useful if they have to
remain relevant. Practice orientation of management student is must generating competence
to deal with issues at grass root level it is for this reason that training & project study is
prescribed as a part of syllabus for MBA in UPTU.

This training is the mode of imparting practical training to the student. The objective is to
provide a deep insight into practical aspects of the functioning of the organization. The
training apprises the student to the actual function, responsibility and problem faced by an
organization. It provides him with the knowledge of the various kind of problem that crop
up in the day to day functioning of the organization .The way they are solved by the
departments and appraisal of the crucial decision taken by the manager at the crucial time.

I was fortunate enough to complete my personnel management training at Bharat Heavy


Electrical Limited (BHEL, HERP), Shivpur, Tarna Varanasi. This has given me an
altogether new experience, which would be immense help to me in my days to come.

ACKNOWLEDGEMENT

I take this responsibility to express my profound and sincere gratitude to my HOD MISS
Shiva Singh, my project guide Miss Divya Vats for providing me with the opportunity to
explore the corridors of the corporate world and gather invaluable knowledge and practical
experience via the Summer Training Project.
I take the privilege of offering a deep sense of gratitude and indebtedness to MY FATHER
and MY MOTHER for providing me their able guidance and inspiration to complete the
Summer Training Report.
I express my sincere gratitude to MISS DEEPIKA MISHRA (ASSISTANT OFFICER
HR), HERP, BHEL who guided me how to carry on with the project. Her able guidance and
support have been constant source of knowledge and motivation for me.
I wish to give my sincere regards to my respected teachers who guided me to build a concrete
platform before sending me on training so that I can land out firmly in all respects.
My parents blessing and co-operation from entire family had been my strength to complete
this study.

DECLARATION
.
I hereby declare that the project report entitled STUDY OF PERFORMANCE
MANAGEMENT SYSTEM IN B.H.E.L AT VARANASI is a genuine research work
undertaken by me under the guidance of MISS DEEPIKA MISHRA(ASSISTANT
OFFICER ,HR) The information has been collected from the genuine authentic sources.
The report is being submitted in fulfillment of the requirement of SUMMER TRAINING
PROGRAMME.

Vakil Kumar Yadav


ROLL NO -1474770044

INDEX
Serial no

Particular

Page no

1
2
3
4

PREFACE
ACKNOWLEDGEMENT
DECLARATION
INDEX

2
3
4
5

COMPONY HISTORY

6
7
8
9
10
11

MANUFACTURING UNITS OF BHEL


EXECUTIVE SUMMARY
OBJECTIVE OF THE PROJECT
COMPONY PROFILE
BHEL ORGANISATION
BHEL,A CANDIDATE FOR MAHARATNA

7
8
09
10
15
25

12
13

COMPONY
LEVELS OF EMPLOYEES
37
ANALYSIS OF PERFORMANCE MANAGEMENT 44

14
15
16

SYSTEM
SWOT ANALYSIS
RESEARCH METHODOLOGY
DATA ANALYSIS

85
86
88

17

RESEARCH FINDINGS

97

18

CONCLUSION

98

19
20

SUGGESTION
LIMITATION

99
100

21

ANNEXTURE

101

22

QUESTIONNAIRE

102

23

BIBLIOGRAPHY

104

Company History
Bharat Heavy Electricals Limited (BHEL) (BSE: 500103, NSE: BHEL) is one of the
oldest and largest state-owned engineering and manufacturing enterprise in India in the
energy-related and infrastructure sector which includes Power, Railways, Transmission and
Distribution, Oil and Gas sectors and many more. It is the 12th largest power equipment
manufacturer in the world. BHEL was established more than 50 years ago, ushering in the
indigenous Heavy Electrical Equipment industry in India. The company has been earning
profits continuously since 1971-72 and paying dividends since 1976-77. 74% of the total
power generated in India is produced by equipment manufactured by BHEL.
It is one of India's nine largest Public Sector Undertakings or PSUs, known as the Navratnas
or 'the nine jewels.

Manufacturing Units of BHEL


Main Manufacturing Facilities

Bhopal (Madhya Pradesh)

Bharat Heavy Electrical Limited, Ranipur, Haridwar (Uttarakhand)

Bharat Heavy Electricals Limited, Ramachandrapuram, Hyderabad (Andhra Pradesh)

Jhansi (Uttar Pradesh)

High Pressure Boiler Plant and Seamless Steel Tube Plant, Tiruchirapalli(Tamil Nadu)
[11]

Boiler Auxiliaries Plant, Ranipet (Tamil Nadu)

Electronics Division and Electro Porcelain Division, Bangalore (Karnataka)

Jagdishpur (Uttar Pradesh)

Rudrapur (Uttrakhand)

Industrial Valves Plant, Goindwal (Punjab)

Bharat Heavy Plates and Vessels Limited (Vizag)

EXECUTIVE SUMMARY
The Performance Management System is a process of setting objectives, making plans to
achieve those objectives and accomplishing the desired results. Rewards and recognition are
the end stage of this process. Organizations use this system to assess the performance of an
individual, a team, a function and then the organization as a total. In this project, the whole
performance management system is described for the company BHEL.
This cycle starts when BHEL signs a Memorandum of Understanding (MoU) with the
Government of India. In this memorandum the vision, mission and values, targets and action
plans are mentioned. In BHEL, system have been devised to cascade Organizational Goals
into individual goals by framing out objectives of the company from the MoU at corporate
level and there by preparing a Balance Score Card both at corporate and unit level. The
summarized feature of this process is sequentially breaking down the organizational goals
into an individuals e-MAP.
This project describes about the E- Map system i.e. the Performance Management System
which is followed in BHEL. This project also describes the problems faced by the appraisees
and the appraisers in this system. It also elaborates about the steps taken by the appraisers to
improve the performances of the appraisees so that their efficiency can be increased and later
the rewards and recognitions are given in the form of promotions, incentives and
empowerment.

OBJECTIVE OF THE PROJECT


To study the process and to understand the importance of Performance Management System
in BHEL that synchronizes the performance of the employees so as to make the work
effective.

To analyze the Performance Management System (e-Map) of BHEL in detail and its
effectiveness.

To analyze the problems faced by the appraisee and the appraiser in this system.

To analyze the steps taken by the appraisers for the improvement of the performances
of the appraisees.

1840), electromechanical (18401940) and electronic (1940present).[5] This article


focuses on the most recent period (electronic), which began in about 1940.

10

COMPANY
PROFILE

11

PROFILE OF BHARAT HEAVY ELECTRICALS LTD.


12

Foundation:
BHEL is the largest engineering and manufacturing enterprise in India in the energy related
/infrastructure sector .BHEL is one of the nine large public sector undertakings known as
Navratnas or Nine jewels. BHEL offers over 180 products and provides systems and services
to meet the needs of the core sector like: power, transmission, industry, transportation, oil &
gas, non-conventional energy source and telecommunications.
BHEL was found in 1950s. The operation are organized in three business sectors; Power,
Industry- including Transmission, Transportation, Telecommunication & Renewable Energy
and overseas business. Today BHEL has a wide-spread network comprising 14 manufacturing
units, 8 service centers, 4 power sector regional centers, 18 regional offices, and a large no. of
project sites spreads all over India and abroad. BHEL is one of the largest exporters of
engineering products and services from India. BHEL has established its references in around
60 countries of the world, ranging from United States in the west to New Zealand in the Far
East. Its export range include: individual products to complete power station, turnkey
contracts for power plants, EPC contracts, HV/EHV Sub-Stations, O&M services for familiar
technologies, specialized after-market services like Residual Life Assessment(RLA) studies
and retrofitting, refurbishing & overhauling and supplies to manufacturers & EPC
contractors.

13

THE VISION, MISSION & VALUES OF BHEL:

BHEL developed its Vision, Mission and Values in 1996, which were reviewed and revised in
2002 and further revisited in 2006.
A). THE

COMPANYS VISION AND MISSION:

Vision- A World Class Engineering Enterprise Committed to enhancing stakeholders Values.


Mission- To be an Indian Multinational Engineering Enterprise providing total business
solutions through quality products, system and services in the field of Energy, Industry,
Transportation, Infrastructure and other potential areas.

B). The

Core Values:

. Zeal to excel and zest for changes


. Integrity and fairness in all matters
. Respect for dignity and potential of individuals
. Strict Adherence to commitments
. Ensure speed of response
. Faster learning, Creativity and team-work
. Loyalty and Pride in the company

14

BHEL Organization
BHEL Operations are organized around three business sectors: Power, Industry & overseas
business. These are catered to by a country wide network of. 14 Manufacturing units
. 8 Service centre
. 4 Power sector regional centre
. 18 Regional Offices

Present Status:
# The turnover of BHEL was Rs.421.4 Billion in the year 2009-10.

# The Turnovers and order inflow have almost doubled in just three years, and the profit
before.

# Tax and Net profit have doubled in two years.

15

Central Foundry Forge Plant, Haridwar


The Central Foundry Forge Plant was set up at Haridwar with French collaboration. The
construction started in 1974 and production was commenced in 1976. This plant has an inbuilt high degree of sophistication normally associated with much larger plants & has
successfully developed various intricate castings and forgings, which were hitherto imported.
CFFP has successfully manufactured various types of steels, e.g. creep resistant steel, heat
resistant steel, stainless steel, armour steel etc. as per Indian and International Standards.

ings (500 kg to 50T piece wt)


1. Plain carbon Steels
2. Alloy Steels
3.

Creep Resistant steels

4.

Stainless steels

Forgings (Upto 55T/pc wt)


1. Rotors (Max dia 2000mm)
2. Discs(Max dia 3500mm)
3. Tube Sheets
4. Blooms
5. ESR Components

16

Manpower
1. Well trained professionally qualified
2. 147 Engineers
3. 221 Supervisors
4. 870 workmen

Steel Melting
1. 3Arc Furnaces- 10T,30T∓ 70T
2. 70 T VAD/VOD Furnaces
3. ESR Furnace

Press
1. 2650T & 9000 T Pneumatic Forging press
2. 18M HT Furnace,CircularFurnace,Mist Quenching Facilities etc.

Machining Facilities
1. 7.3 M V. borers, WD160/220 H.Borers, 18M Deep Hole Boring machines
2. 18 M/10M centre lathes etc.
17

Testing Facilities
1. Latest Spectrometer, Hydrogen , Carbon/Sulphurdeterminators
2. No of sophisticated US Flaw detectors, Boroscopes, Radiographic Chambers and creep
testing facilities.

Quality Certification
1. Well known Boiler board certification
2. Approved by LLoyd Register of Shipping
3. IS0-9000 Certification by BVQI
4. TUV certification

PROFILE OF HEAVY ELECTRICAL EQUIPMENT PLANT


(HEEP):
It is one of the four major manufacturing units of BHEL. It was established in the year 1962
with the Russian collaboration. HEEP follows the corporate policies on HR, Materials
Management, Finance Management and Work Management etc. and focus on customer needs
captured through S-maps. To align objective of the units and its different function with
corporation, unit has developed its business Policy, CSFs and functional Pole Star
Statements. HEEP is consistently earning profit since its breakeven in 1974-75.It achieved an
all time high turnover of Rs.20.03 billion, PBT of Rs.4.41 billion, and EVA of Rs.2.14 billion
in 2006-07. The 210, 250 and 500 MW thermal sets, made by HEEP, constitute of 65% of
total thermal coal based power plants. These contribute to 71% of total generation by coal
based thermal sets in the country. In 2005-06 HEEP added 1250 MW to National grid and
312 MW added in Libya by export. And latest HEEP added 1500 MW NEW TURBINE Shop
in Haridwar Grid.

18

The Important Milestones in the History of HEEP (up to March 2009)


Year
1962

Event
Technical collaboration with Prommasho export, USSR, for setting up HEEP

1967

First product (Electric Motor) rolled out

1969

Manufacturing of first 100MW steam turbine

1971

Manufacturing of first 100MW Turbo Generator


.Breakeven achieved
.Technical collaboration with KWU(Siemens), Germany for coal based
thermal sets

1974
1976

First 200MW coal based Thermal Set commissioned

1983

First 500MW coal based Thermal Set commissioned

1989

Technical collaboration with KWU for gas turbine

1991

Collaboration with Oto-Melara, Italy, singed for Defense Project

1993

Accreditation of ISO-9001 Quality System

1995

TQM Movement launched in HEEP

2000

Accreditation of ISO-14001 Environment Management System

19

2001

Technical collaboration with KWU for coal based thermal setup up to


1000MW
extended for 10 years

2002

Accreditation of OHSAS-18001

2004

New Blade Shop Established

2006

HEEP wins CII-EXIM Bank Prize for Business Excellence

2008

HEEP employees won Prize for setting good quality product

2009

Provided Biggest Dynamo to JAPAN.

S.No.
1.

Products
. Steam Turbine & Generators : 210-800 MW

Percentage of
Turnovers
91.5%

. Condensers, Heat Exchangers and Pressure


vessels
. Nuclear Turbines & Generators : 210-540MW
. Gas turbines & Generators : 156 MW (ISO)
2.

Hydro Turbines & Generators : 5-250 MW

4.5%

Defense Equipment : Super Rapid Gun

2.5%

20

Mounting (SRGM)
4.

Large size AC Motors

1.5%

Range of Products:
Main products of the unit are higher rating Thermal sets (210MW and above). Apart from
these HEEP also manufactures Hydro sets, large size AC motors, naval Guns (SRGM). The
percentage distribution of product profile is as follows-

MANUFACTURING:
. Marketing and Servicing:
. Manufacturing and other facilities

Manufacturing Plants:
21

HEEP has state-of-art manufacturing facilities to deliver 3500MW of power generating


equipments. HEEP has absorbed world class technology through collaboration with M/s
Siemens, Germany and plan to modernize its manufacturing facilities to enhance the
manufacturing capacity to 5250MW and its capability to manufacture higher rating sets.
Facilities added for manufacturing of Turbo Generators with total Impregnated Stator core
enabling development of Turbo Generators with higher efficiency. New Blade Shop with
world-class machine tools has led to indigenous developments & manufacture of advanced
blades with improved heat rate. HEEPs product profile necessitates tailor made designs with
contemporary features. These products are realized through modern machining processes,
insulation systems, fabrication, assemblies and testing. Transportation of large and heavy
consignments is done through prudent logistic management.

Major Manufacturing Units are:


. Block - 1 & 4

. Block - 2

: Electrical Machine Shop


: Fabrication Shop

. Block - 3

: Turbine Manufacturing

MARKET AND COMPETITION:


MarketHEEPs customer profile ranges from state electricity boards, Govt. Power utilities like
NTPC, NPC and NHPC to IPPs like Reliance Energy. HEEP has also exported gas turbines
sets to Libya and Iraq. Power Sector Regions of BHEL are its key internal customers. Their
key customer, NTPC has drawn up plan for capacity addition of 17,000 MW by 2012. HEEP
has planed for execution of 34,619 MW by 2012.

22

CUSTOMER SEGMENT

NTPC

6% 3%

SEBs

14%

Export
45%

Defense
Others

33%

Competition -:
Acquisition & mergers by Power Equipment Manufacturers have left BHEL, Siemens, GE
and Alstom as major players in India. SEPCO (China), LMZ (Russia), Dang Fang (China)
and Skoda (Czech Rep.) are emerging competitors. To meet the emerging challenges, focus is
given on increasing manufacturing capacity and introduction of new technologies. It helps
HEEP to maintain it leading position in domestic market. Challenges posed by china and
other competitors has prompted HEEP to become aggressive in introducing 300/350 MW sets
to be ready for 800MW sets. HEEPs position has further strengthened as global competitors
could not fulfill expectations of Indian customers. BHEL was offered work of
RAYALSEEMA PROJECT after failure of CMEC, China. Similarly, BHEL is part of
consortium in restarting Dabhol project after failure of Enron.

Changing Business Environment -:


Power sector has to grow over 10% annually commensurate with GDP growth
of 7-8%. Thus, the demand for thermal sets will remain high. Central Electricity
Authority (CEA) is the guiding authority for Power Sector strategies in our
country. Representatives of BHEL and power utilities are members of various
committees formed by CEA. HEEP will strategically concentrate on higher rating coal based
thermal sets to fulfill the countrys vision of adding 107,000 MW capacity to achieve
23

POWER ON DEMAND by 2012. Govt. of India has reposed its faith on BHELs
capabilities and has asked it to get prepared for bulk ordering of 8 nos. 800MW sets in
collaboration with Siemens. CEAs stress on R&M of ageing Power Plant is also providing
business opportunity to HEEP.

Strategic Challenges -:
The fast changing power scenario emerging with rapid growth in national power capacity has
given unit a major challenge of establishing power infrastructure in close in co-ordination
with its key customers. To cater the needs of higher rating sets of 800 MW, HEEP has
collaboration with Siemens. To capture future customer needs and expectations and emerging
market scenario Strategic Map (S-Map) is prepared.

PRINCIPLE FACTORS OF SUCCESS:


Satisfied Customers:
Customer satisfaction and success is reflected in the theme:
GrahakSafal Hum Safal.
The business policy also focuses on customer focused business leadership. HEEP regularly
conducts independent Customer Satisfaction Surveys that are used to identify priorities of
customers and draw out strategy accordingly. Focused efforts of HEEP has resulted in
improvement of customer satisfaction index from 55.39 in 2004 to 70.14 by 2005 having
most of the parameters better than its competitors and sister units. In 2006 perception of
customers was collected internally.

Excellence Initiative for performance Improvement:


24

Excellence initiative is their Balance Score Card (BSC), Overall Equipment Effectiveness
(OEE), Award Scheme (IMPRESS Copyright of HEEP) and performance appraisal through
e map. To measure and increase the effectiveness of these initiatives HEEP uses internal
audits (Financial, ISO 9000, HSE audits, OEE audits). Engineers are frequently deputed to
collaborators works to enhance technical knowledge. Knowledge Management & intellectual
Property Right Management has been identified as CSF since 2004.

Partnership with Suppliers:


To remain competitive it is vital for HEEP to reduce the cost and procurement time cycle of
raw materials, components and assemblies. Strategic Outsourcing of processes, components
& assemblies is considered the most important CSF to meet units challenges of cost &
cycle time reduction. To this end, HEEP has focused on increasing supplier base & win
partnerships through one to one discussions and MOUs. A B2B portal has been installed
for communication and transparency in dealing. HEEPs sister unit CFFP, Collaborator
Siemens, SAIL and IOC are the key suppliers and unit has maintained the partnership with
them for more than 15 years. Ancillaries developed by HEEP are vital to its success and are
supported with technical guidance and training, material, special tools, calibration and testing
facilities.

WORK CULTURE:
Vision, Mission and Values drive the organization behavior and work culture towards
excellence. One of the major strength of HEEP, Haridwar is its free, open participation of the
employees in improvement projects, Suggestion, quality circle and other new initiatives.
HEEP has been Pioneer among the other BHEL units to adopt many excellence initiatives.
Special thrust on IT has led to development of many engineering and business application by
in-house development team. To promote excellence, in-house competitions are organized
through out the year. Unit has given award to the winners in Special Award Distribution
Function. HEEP has been awarded National Award for 14 consecutive years by INSSAN and
National Award for Excellence in Energy Conservation as Energy Efficient Unit by CII.

Competent and Educated Employees:


25

The capable and skilled HR asset of HEEP has placed it among top engineering organizations
in India. This is aptly demonstrated in the records number of prestigious National Award like
Vishwakarma and Prime Ministers awards won by employees.

Employee Strength:
Employee Profile ( As on 30 May 2010)
Category
Executive
Supervisors

Number
952+124 (ET)
938+111 (ST)

Workmen
Total

5883
8008

BHEL, a candidate for Maharatna


Company

For getting Maharatna status, a company needs to have a three-year track record of annual net
profit of over Rs 5,000 crore, net worth of more than Rs 15,000 crore and turnover of more
than Rs 25,000 crore. It should also be a listed firm.
BHEL's turnover was Rs 33,173.34 crore in the fiscal 2009-10. However, the company's
annual average net profit was Rs 3,433 crore during the last three years.
Its shares were trading at Rs 2192.5, down 0.05 per cent from the last close at the Bombay
Stock Exchange.
26

Maharatna scheme was announced by the government in December 2009 to give more
operational freedom to the top-performing PSUs.
When that several PSUs lack the required number of independent directors on their board,
Patel said the positions would be filled up soon.
"Many PSUs have independent director vacancies. The independent director position has to
be fulfilled at the earliest and Department of Public Enterprises will make sure that all the
position have eminent people," he added.
As per the Clause 49 of the listing agreement between companies and stock exchanges
requires companies to have independent directors in half of the board positions.
Some large listed state-run companies do not have the required number of independent
directors.
This has impeded the government's effort to divest part of its stake in public sector firms,
forcing it to name retired bureaucrats as independent directors.
Out of 47 listed government companies, the boards of 17 companies like Indian Oil, BHEL
and SAIL do not have the required number of independent directors," a recent government
report had said.
There are 246 Central Public Sector Enterprises in the country, as on March 2009.

27

BHEL Human Resource Departments


Introduction
Human resource is a term used to describe the individuals who make up the
workforce of an organization, although it is also applied in labor economics to,
for example, business sectors or even whole nations. Human resources is also
the name of the function within an organization charged with the overall
responsibility for implementing strategies and policies relating to the
management of individuals (i.e. the human resources). This function title is
often abbreviated to the initials "HR".

Description of HR Departments
The Human Resource Department of BHEL , Bhopal is broadly divide into two
Category :I.HRDC
II.HRM
I.HRDC (Human Resource Development Centre) :The principal objective of training and development division in BHEL is to
make sure the availability of a skilled and willing workforce to
an organization.The training system in BHEL is to create a smarter workforce
and yield the best results.

28

Human Resource Development Centre in BHEL performs the following activities:1. Apprenticeship Training
2. Faculty Work
3. Vocational Training
4. Induction Training
5. Developmental Training for employees.

II.HRM (Human Resource Management):HRM covers the various departments, performing the different functions, which are as
follows:1.Establishment
2.Industrial Relations & Welfare
3.Human Resource Systems Development
4.Law
5.Administration
6.Others
6.a Policy
6.b Single Window Cell
6.cRajbhasha
6.d Contract Labour Cell

29

1. Establishment
All the Establishment Matters comes under this department . It deals with a
wide range of activities starting from induction of an employee till retirement.
It includes record keeping of all the employees & its verification (as per
required). For Example; Sanction of leave , bus pass , higher qualification
matters , passport , promotions , transfers , social security forms and their
nominations , loans etc.

2. Industrial Relations & Welfare


Industrial Relations is a multidisciplinary field that studies the employment relationship. It is
a bridge between workers and top management. It focuses on labour relationship which
includes resolving the

grievances of the workers. Contract Labour Administration and

Industrial Dispute Cases also comes under it.

BHEL has various labour unions which are actively giving shape to IR.The
main Trade Unions are:1.HMS(Hind MajdoorSangh)
2.INTUC(Indian National Trade Union Congress)
3.KTU(Karamchari Trade Union)
4.CITU
5.AITUC

During all these years, Indian National Trade Union Congress (INTUC) had
the monopoly over four other trade unions in the plant.
30

3. Human Resource Systems Development


It consist of all the functions like:-

a. Staffing (MPP, Recruitment , Placement & Exits)


Understanding & Over staffing reduces the competitive efficiency of the business. Planning
staff levels requires an assessment of present and future needs of the organization be
compared with present resource and future predicted resources which is accomplished by
Man Power Planning.

Recruitmentsis an essential & indispensable part of HR which deals with hiring process,
which may be from outside or inside the company. Internally through transfers, promotions
etc. , and externally through campus selection , written examinations and interviews etc.

31

b. Performance Management
BHEL being a very big & widely spread organization which has large number
of manpower. Thus to appraise its performance need a comprehensive &
exhaustive method.
Performance appraisal in BHEL is done in 2 ways:Supervisors and Workmen: - ACR (Annual Confidential Report)
Executives: - e Map

c. New Business Initiative


BHEL have a separate department for new Business technique which performs
various functions like designing SAP , ERP , e-Map , PCMM etc, exclusively
for BHEL.
d. Rewards & Recognition
e. Career Planning
f. Succession Planning
g. Competency Management
h. Compensation Management
i. Communication Systems

4. Law

32

This Department performs all the legal activities of the BHEL. It covers:Litigation Regarding Service Matters
Arbitration
Court Cases
Legal Advices
Contract Labour Matters

5. Administration
For the welfare of the employees the many other facilities were provided by the BHEL
which is administered very efficiently. They are as follows: Township Administration
Office Administration
Hospital Administration
Sports Administration
Transport

33

6. Others

There were so many other departments of HR which are working for the benefits of the
employees. It facilitates the information to the employees, which indirectly encourage the
employees to perform their best. They are as follows:-

6. a. Policy
Policy matters include check on various implementation processes. It deals with endorsing &
distribution of Corporate HR circulars etc. Many concepts like e-Map, competency mapping ,
HR Software packages (SAP , ERP etc) are its concern areas.

6. b. Single Window Cell


This department facilitates the convenience of work dealt by an employee who is unable to
go to different cell to process his/her need. So, all the work can be done through a single
window or cell.

6. c. Rajbhasha
Hindi speaking enables proper communication & flow of work within an organization, where majority
of people are Hindi speaking. BHEL being a governmental organization needs to do its entire works
(as far as possible) in Hindi.

6. d. Contract Labour Cell

34

BHEL employee structure comprises many workers who are not the employees of it. They are
working on contract basis. A large chunk of work is done by them thus they are very crucial
to the organization. It can be of two types:a) Job Contract- Registered Societies of contract labour supply this kind of labours.
b) Work Contract These are brought on temporary basis on fixed priced order value by the
contractor.

35

Functions of Some HR Departments


1. Recruitment Department
Recruitment refers to the process of attracting, screening, and selecting qualified
people for a job. For some components of the recruitment process, mid- and large-size
organizations often retain professional recruiters or outsource some of the process to
recruitment agencies.
The stages in recruitment include sourcing candidates by advertising or other
methods, screening potential candidates using tests and/or interviews, selecting
candidates based on the results of the tests and/or interviews, and on-boarding to
ensure the candidate is able to fulfill their new role effectively.

2. Manpower Planning Department


Manpower Planning which is also called as Human Resource Planning consists of putting
right number of people, right kind of people at the right place, right time, doing the right
things for which they are suited for the achievement of goals of the organization. Human
Resource Planning has got an important place in the arena of industrialization. Human
Resource Planning has to be a systems approach and is carried out in a set procedure. The
procedure is as follows:
1. Analysing the current manpower inventory
2. Making future manpower forecasts
3. Developing employment programmes
4. Design training programmes

36

3. Promotion Department
4. Transfer Department
5.

A promotion is the advancement of an employee's rank or position in an


organizational hierarchy system. Promotion may be an employee's reward for good
performance i.e. positive appraisal.

6.

Before a company promotes an employee to a particular position it ensures that the


person is able to handle the added responsibilities by screening the employee with
interviews and tests and giving them training or on-the-job experience.

7.

A promotion can involve advancement in terms of designation, salary and benefits,


and in some organizations the type of job activities may change a great deal. The
opposite of a promotion is a demotion.

A transfer is a lateral move to a position in the same classified pay range (classified position)
or to a position with comparable duties and responsibilities (non-classified positions).

8. Policy Department
A policy is typically described as a principle or rule to guide decisions and achieve
rational outcome(s). The term is not normally used to denote what is actually done,
this is normally referred to as either procedure or protocol.
Whereas a policy will contain the 'what' and the 'why', procedures or protocols contain
the 'what', the 'how', the 'where', and the 'when'. Policies are generally adopted by the
Board of or senior governance body within an organization where as procedures or
protocols would be developed and adopted by senior executive officers.
A Policy can be considered as a "Statement of Intent" or a "Commitment". For that
reason at least, we can be held accountable for our "Policy"

37

uSpervisWoExkct
Levels of Employees

Executive Category:
E1

Engineer/Executive Trainee

E1A

Engineer/Executive /Officer

E2

Sr.Engineer/Executive /Officer

E3

Deputy Manager

E4

Manager

E5

Sr.Manager

E6

DGM

38

E6A

Sr.DGM

E7

AGM

E8

GM

E9

Executive Director

Supervisors Category:
S1

Assistant Engineer Grade 2

S2

Assistant Engineer Grade 1

S3

Deputy Engineer

S4

Additional Engineer Grade 2

S5

Additional Engineer Grade 1

S6

Sr.Additional Engineer Grade 2

S7

Sr.Additional Engineer Grade 1

Workers Category:
A1/B1

Unskilled Labours/Attendant

A2/B2

Semi-Skilled Labours

A3/B3

Artisan Grade 4

A4/B4

Artisan Grade 3

A5/B5

Artisan Grade 2

A6/B6

Artisan Grade 1

A7/B7

Technician

A8/B8

Sr. Technician
39

A9/B9

Master Technician

A10/B10

General Technician

A11/B11

Chief Technician

40

Organizational Hierarchy

41

Human Resource Practices in BHEL


1. Ensuring a Safe, Healthy and Happy Workplace
.In BHEL there is a system to capture the needs of employees through Employee Perception
Surveys on environmental factors which are followed up by in-depth analysis, focused group
discussions and interactions with workforce so as to improve their work environment. A full
fledged WEX department functions along with HR department to bring about these changes.
They have very recently introduced ESS which online captures such requirements of
employees on a Companywide bases. BHEL has embarked upon a massive modernization of
its offices to suit the new age style of functioning

2. Creating an atmosphere of openness and knowledge sharingcreative communication


To promote transparency BHEL has incorporated MECOM (Management Employee
Communication Meeting), at its Bhopal unit. This plan entitles each worker to a presentation
which facilitates open communication among workers and the senior management. This
unique practice welcomes free criticism, appreciation, complaints and feedback from one and
all.
BHEL intends to bring about a revolutionary change through the incorporation of its new
concept MECOM. BHELs initiative is a step towards understanding the organization at
every level of management. It identifies the importance of its people and how people are its
greatest assets which will finally take the organization to greater heights. Through this
initiative, it seeks to strengthen the character of disclosure and transparency so that there is an
unrestricted flow of information, which will create a conducive atmosphere for employee as
well as organizational growth.
There are ship councils, canteen committee, township committee etc to promote sharing and
soliciting employees ideas. There are specifically dedicated knowledge management portals,
a full scheme on developing knowledgeworkers, a Mentoring scheme , a multi-skilling
scheme; where sharing is done on a very continuous basis.
42

3. Developing an atmosphere of Performance linked payments


BHEL Reward performance through a very well documented Reward Scheme that rewards
both individual and group performance and certainly there are no rewards below a certain
level of performance. They have introduced a PRP scheme based on which the employees
are paid bonus linked to their performance. There are many other schemes like IMPRESS and
an IPR (Patent) scheme that reward excellence in performance.

43

4. Fair Evaluation System for Employees


BHEL e-MAP system ensures all the parameters of fair Evaluation. All executives and
supervisors are mapped through their balanced score cards. The measurement is not only of
performance but also that of quality of performance. We at BHEL tend to measure behavioral
traits too for identifying futures leaders and specialists. The whole process provides effective
feedback leading to discussions and improvements. There have been continuous
improvisations in this scheme for better and just evaluation.

5. Getting the right person in right time


BHEL has been the first PSU to introduce an online system of recruitment even at artisan level. This
has ensured a very quick yet transparent system of recruitment, they announce the results the next day
of written test or interview and today this stand as a bench mark process amongst PSUs. They have
gone into exercises of identifying the core and non core areas for recruitment, effective redeployment
of existing manpower through retraining. They have retainership scheme for retaining the expert
manpower much needed in the organization. Thus in BHEL we have been exploring all the resources
to get the best person in time and for the right job.

6. Training and development:


BHEL have invested hugely here. They have specially designed focused training programmes
at executive, supervisor and worker level inductees. A full fledged system is in place to
identify the training needs of existing employees. Multi-skilling with a host of behavioral
training programmes forms the back bone of our training objectives. BHEL mentoring
scheme takes special care of their endeavors like LEAN, DTC , 6 sigma, 5S have been
introduced through extensive training

44

7. Compensation and benefits:


BHEL have been extremely good when it comes to pay packages and benefits. The recent
wage revision has led to a very handsome increase in salary of workers. Insurance coverage,
death relief, medical care , township facilities, parks, schools, colleges, community centers,
holiday homes, education fees, libraries, various allowances, places of worship, extensive
sports club, swimming pool, Yoga Centre, cooperative societies etc. are all various benefits
that ensure at BHEL.

7. A culture of Continuous Improvement The PCMM model and


SAP for HR
BHEL have introduced a model called PCMM (People Capability Maturity model) for continuous
improvement of HR practices. The model is based CMM model practiced in software industry and
BHEL is first PSU to introduce this model for HR practices. This shall hels in establishing the best
form each HR practice and that too uniformly across the organization. BHEL have introduced SAP for
HR function and HR deliverables are now sourced through SAP only.

45

Analysis of Performance Appraisal System in BHEL

Introduction
A performance appraisal, employee appraisal, performance review, or (career) development
discussion is a method by which the job performance of an employee is evaluated (generally
in terms of quality, quantity, cost, and time) typically by the corresponding manager or
supervisor.
A performance appraisal is a part of guiding and managing career development. It is the
process of obtaining, analyzing, and recording information about the relative worth of an
employee to the organization.
Performance appraisal is an analysis of an employee's recent successes and failures, personal
strengths and weaknesses, and suitability for promotion or further training. It is also the
judgement of an employee's performance in a job based on considerations other than
productivity alone.
People differ in their abilities and their aptitudes. There is always some difference between
the quality and quantity of the same work on the same job being done by two different
people. Performance appraisals of Employees are necessary to understand each employees
abilities, competencies and relative merit and worth for the organization. Performance
appraisal rates the employees in terms of their performance.
Performance appraisals are widely used in the society. The history of performance appraisal
can be dated back to the 20th century and then to the second world war when the merit rating
was used for the first time. An employer evaluating their employees is a very old concept.
Performance appraisals are an indispensable part of performance measurement.

46

Objectives of Performance Appraisal

The Employees ability, potential and performance are judged in the appraisal process. It is
being tested that whether employee meets the declared objectives and how far the decided
parameters are justified.
The factors like Quality of work, Cost Effectiveness, Process Orientation, Contribution to the
Group and Objective being met are analyzed in the process.
The Objective of Appraisal system is to analysis the effectiveness of the employee in
performing his/her job successfully or in an effective way.
The Performance Appraisal Process gives a clear picture of the efforts placed by an employee
in performing his/her job and the way he/she meets the deadlines of the project. This acts as
an input to the promotion system of the organization.

47

Purpose of Appraisal System

Give employees feedback on performance

Identify employee training needs

Document criteria used to allocate organizational rewards

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


actions, bonuses, etc.

Provide the opportunity for organizational diagnosis and development

Facilitate communication between employee and employer

Validate selection techniques and human resource policies to meet federal Equal
Employment Opportunity requirements.

To improve performance through counseling, coaching and development.

List of Skills/Competencies to be assessed for executives in grades


E1A To E5
1

Functional / Technical Knowledge : Possesses of knowledge related to function,


understands and appropriately applies technical ability related to functional / technical
expertise

Leadership: Motivates & develops individuals. Sensitive to the needs and problems
of others. Encourages participants in decision making by members of the Team

Interpersonal Relations & Team Playing :Sensitive to the needs and problems of
others. Collaborates with colleagues to seek solutions that are beneficial to the team.
Supports others contribution and helps in achievement of teams goals.

Analytical Ability: Displaying the ability to analyse the information and draw logical
conclusions.

Openness to Continuous Learning :Assesses and recognizes own strengths and


weaknesses; pursue self-development.

Communication: Skill to give and receive instructions accurately, ability to present


issues lucidly and shares information will all concerned.

7
Initiative &Resourcefulness :Able to act effectively / imaginatively to accomplish
mission ; initiative taken to solve problems, improve processes
48

Achievement / Result Orientation :Display zeal to achieve by aggressively and


passionately pursuing targets which have a standard of excellence.

Sense of Responsibility / Tenacity :Meeting targets, shouldering responsibility,


extent of follow up required.

10 Quality of Work :Thoroughness, accuracy and general excellence of output ; extent


of work free from errors; consistency of output under varying conditions.
11 Customer Focus & Service Orientation : Ability to strive for success of both
internal & external customers through high responsiveness and delivering value.
12 Administrative / Executive Ability :Abilityto objectively view administrative
situation and demonstrate courage in enforcing financial and personal discipline;
ability to appraise subordinates objectively.
13 Decision Making &Flexibility :Ability to diagnose and analyse problems and
generate effective solutions by taking practical and calculated decisions; open and
flexible when required.
14 Planning &Organising :Displaying the ability to plan dynamically and implement
the same for achieving desired goals.
15 Creativity &Innovation :Develops new insights into situations; encourages new
ideas and innovations; solves problems creatively

49

List of Skills/Competencies to be assessed for executives in grades


E6 & E7
1

Business Environment Knowledge : Knowledge and understanding of economic,


legal, socio-political trends.

Profession Specific Knowledge: Knowledge related to profession as a whole.


Knowledge which is determined by authority & responsibility pf other positions,
knowledge of mission, values and standard operating procedures, policies.

Making Business Decisions : Use business related data to sport effective and timely
business decisions by *Systematically gathering relevant business information
*Identifying the strengths and weaknesses of a particular business line Recognising
opportunities or threats and acting on them rapidly *Using business facts collected in
daily decision making.

Vision: Develop a vision for the future of the organization by : Grasping the meaning
oftrends & interrelationships between the organization and its environment at the
local, national and international level Identifying fundamental values and beliefs to
guide the organization into the future.

Systematic Thinking : Identifying connections between situations that are not


obviously related *using common sense, past experience and basic roles to identify
key underlying issues *Generating and testing hunches which may explain complex
situations or problems.

Networking : To cultivate an informal network which may help to get things done
through *Developing contacts with people outside of the immediate work Unit
*Using networks as a source of information & sport.

OrganisingResources :Ensure that all financial, personnel and/or other resources are in
place to meet needs by *Identifying and acquiring the resources. *Allocating and
utilizing the resources in a timely and cost effective way *Monitoring and controlling
all resources required to maintain the efficiency of operations.

Inspire People : To generate a sense of purpose for the work done by the organization
instilling enthusiasm, loyalty and commitment among team members at all levels of
the organization *Inspiring, motivating and guiding others towards organizational
goals and objectives *Setting an example for others by behaving in ways that are
consistent with espoused beliefs and values and the organisations vision and
direction.

50

Values
1

Fairness :Decisions are made objectively, free from patronage and reflect the just
treatment of employees and applicants.

Transparency :There is open communication about every aspect of managerial


decisions which concern people.

Trust :Trustworthiness leading to confidence *Allow staff the freedom to grow and
develop *Relate to others on the basis of mutual respect * Courage to stand by your
convictions.

Candour: Frank and forthright *Give and receive constructive criticism/suggestions


*openly discuss performance deficiencies and take corrective action *Appreciate
good performance *Be consistent in words and deeds *Face up to your mistake.

Collaboration :Working in tandem *Be open in sharing information and in


seeking suggestions / opinion. Be sensitive to concerns of *Honour your commitment
Encourage team work across departments / functions.

Involvement :Total commitment *Be dedicated and committed to work. *Build


commitment by encouraging wide participation in decision making process to the
maximum extent.

Flexibility :Ability to participate and adapt to changing circumstances using sound


judgement *Be open to accepting new ideas *Be willing to learn from anyone and to
do things differently *Be prepared to operate and adapt to different environments.

Willingness to Accept Challenge :*Be willing to experiment*Allow for freedom to


fail, but learn from it too.

Discipline :Adherence to accepted norms *Honours the promises and adhere to


agreed system *Respect for others time and space *Exercise self control.

10 Ethical Behaviour :Demonstrate honesty and sincerity in every action *Apply sound
business and professional ethics *Show consistency with principles, values and
behaviours.

Generic Values
1

Leadership Abilities:
51

Demonstrates ability
For guiding collective decision making
For succession planning
Crisis management and
Ability to take risks.

2 TeamBuilding:
Demonstrates effectiveness in re-organizing his/her own department

Manage diverse and divergent views and group processes without losing sight
of objectives.

3 Ability to Build a Strategic Vision:


Demonstrates ability to manage change
Focus on long term issues
Strategic thinking
Translate vision into goals.

4 Business Sense: *Commitment to bottom line results by enhancing revenue


generation by addressing interest of customers and stakeholders *Balancing need for
viable short and long term performance *Optimizing unit/organizations contribution
while supporting corporate objectives *Spotting and pursuing new business
opportunities wherever possible.
5

Communication Skills:Communicate ideas and information effectively


and market key points effectively through public speaking and presentation * Ability
to convert ideas through action plan and ensure acceptability within the organization
and performance at Board meetings

Role of Intermediary Level Executives


52

Intermediary is that executive who comes in the line of Reporting between the
Reviewer and the Accepting Authority of the individual.

Intermediaries will be identified by the MAP system based on the reporting


relationships built in the system.

Only Part-B of the individuals MAP will go through the Intermediary.

Intermediary will be able to view the scores given by Appraiser & Reviewer but will
not be able to make any changes.

He will be required to only record his comments in the comments box.

Role of Accepting Authority

Accepting Authority (AA) is the one marked specifically for a set of individuals in the
MAP system for finalising the scores of Part-B.

AAs score of Part-B will be taken as Final Score of Part-B for the individual & used
for calculating the Composite Score of Part A+B.

AA will be able to view the Part-A score of the individual but will not be able to
change it.

AA will also be able to get a comparative view of scores of Part-A & B of all
individuals under his purview through a report on his dashboard.

53

PERFORMANCE APPRAISAL PROCEDURE IN BHEL

The Performance Appraisal process in BHEL mainly categorized in two way-

PERFORMANCE
APPRAISAL SYSTEM AT
BHEL

NON EXECUTIVE
(WORKER/

EXECUTIVES
THROUGH

SUPERVISOR)

e - MAP

THROUGH ACR

ARTISIAN/

SUPERVISOR

WORKERS

(S4 AND
ABOVE)
54

1 The WorkFlow

Part-A1 (as existing):

Appraisee Appraiser Appraisee Reviewer

Explanation:
The Appraise does his self assessment by selecting certain KRA and allocating certain
percent of work rate to it and forward it to the supervisor i.e. The Appraiser. The Appraiser
gives his assessment on Part A and Part B and forwards it to the Appraise. The Appraise can
have discussion only on the score of the Part A while Part B score is kept hidden. When Both
Appraise and Appraiser are satisfied with their Part A score the report is forwarded to the
reviewer who gives his final assessment score on Part A and Part B. This Ends the Phase 1
Process of Performance Appraisal.
Note: No Self Assessment for Part-A2.

55

Part-A2 (new):

Appraiser Reviewer Intermediaries (if any)

Final Authority (NC Head)

Explanation:
The data from Phase 1 acts as an input to this phase 2. The intermediaries levels can only add
comments to the performance score but cannot change anything. Its like a read only phase.
And, then finally the report reaches the final authority , who gives the final score for Part B
only on individual competencies. And then a final Performance Score Card is generated for
the Employee for that year.

56

2.2

KRA (Key Result Areas)

In the performance appraisal process an employee has to select some KRA per
department to a net sum of 100. Some KRAs are optional functional while some are core
functions.
The KRAs that ends with 00 are termed as Mother Care KRAs . It includes all sub child
KRAs under it. While if an employee wishes to choose just some child care KRAs he/she
can do that also!
Example:
Mother Care KRA:

HRX02200 (Ends with 00)

Child Care KRAs: HRX002201, HRX002202, HRX002203, HRX002204, HRX002205,


HRX002206, HRX002207

Mother Child KRA:


Many of the KRAs derived from the Balanced Scorecard are group level activities that
cannot be performed by a single executive. Such KRAs can normally be taken up by the
group head and people at the working level may not find it suitable for their plans as they
would be doing only part of the activity. Such group level KRAs have been marked as
Mother KRAs. These Mother KRAs are further broken down into smaller activities which
can be performed at the level of the individual team members. Such individual level KRAs
are called Child KRAs. The purpose of the Mother-Child Concept is to break down major
activities into smaller ones which are executable by the working level executives for which
they are accountable.
In case the entire work related to an activity is being done by a single individual, he will
select the Mother KRA in his plan. In such a case he cannot select the Child KRAs
However, if an individual is responsible for only a part(s) of a Mother KRA, he has to
choose the specific Child KRA (s). He can choose more than one Child KRA of the same
Mother, in case it is applicable.
Critical KRAs:
Certain KRAs have been identified and marked as "Critical" for their function. These KRAs
are essential for the fulfillment of the objectives of that function and must be taken by
57

someone in that function. Functional HODs should ensure that all Critical KRAs have been
taken by some individual or the other of that function. They have been identified with an
Asterisk (*) mark towards the Left Hand Side Panel in the KRA Master (Near the Check
Boxes).

Part A1
The Part A1 deals with the KRA Target Achievement. It focuses on:
It consists of KRA assessment.
It will have the WEIGHTAGE of 80 %.
The score of part A1 will be finalized by reviewer itself.

Part-A1 (as existing):

Appraisee - Appraiser Appraisee Reviewer .

58

Part A2 will apply to all executives except the PG/ Function Heads and the Unit
Heads where the assessment of performance is being done by Committees.
Note: Part A2: Qualitative Assessment

1. Quality of work :
Has demonstrated awareness of the quality requirements of the job and has at his level
delivered results/ output of the expected standard free from deficiencies.

2. Cost effectiveness:
Understands cost implications of own work and has at his level ensured efficiencies to
optimize the same.

3. Process orientation:
Employee has performed the job in a systematic manner following defined/ desired
processes. And, the employee did not resort to shortcuts that may impact the quality, cost etc.
of the output.

4. Contribution to Group Objective:


Displayed strong ownership of Group objectives and accepted challenging tasks to achieve
them, even if they were not part of his/ her agreed work plan.

2.3 Part B
To assess the Skills/ Competencies possessed by individuals and factor in this
assessment for the purpose of Promotion decisions.
Assessment of Part-B will be done on-line as part of Final Review Module of e-MAP.
It will be available to the assessment authorities after the assessment of Part-A is
completed.
The final authority to approve Part-B score will be called the Accepting Authority.

59

There will be two sets of Skills/ Competencies mapped to different levels of


executives as follows:
E1A to E5 - Skill/ Competency Set-1
E6 & E7

- Skill/ Competency Set- 2

Note: Assessment will be on a 5-point scale


EXECUTIVE

WEIGHTAGE OF

WEIGHTAGE OF

BAND

PART-A

PART-B

(KRAs of e-MAP)

(Skills/ Competencies)

E1A to E3

80%

20%

E4 & E5

70%

30%

E6,E6A& E7

50%

50%

2.4

Scores

1-Score of Part-A will constitute the Performance Score of the individual for the year.
Going forward this score will be used for determining the payout of Performance Related
Pay (PRP) at individual level after Normalisation.
Consolidated Score of Part-A and Part-B will constitute Composite Score of the
individual for the year and will be reckoned for the purpose of promotion decisions.

The following formula will be used to arrive at the Composite


Score:
60

Composite Score

(Score of Part-A * Weightage of Part-A)


+
(Score of Part-B * Weightage of Part-B)

61

2.5 Screen Shots

62

63

64

65

66

67

68

2.8 Performance Appraisal for Non-Executive

69

2.8.1

PERFORMANCE

APPRAISAL

SYSTEM

FOR

ARTISIAN/WORKERS:-

The Performance Appraisal of Artesian/workers is done through ACR (ANNUAL


CONFEDENTIAL REPORT).The ACR is a confidential report and is assigned by the
controlling officer and not disclose to the employees.

PROCEDURESTEP 1Firstly the basic information of the employees is written in the ACR form such
as-

SECTION AND DIVISION which is followed by :

A)PERSONAL DATA

Name
Staff number
Designation
Date of birth
Pay scale
Present grade
Date of entry in present grade
Qualification
Number of time EL/SL taken
Number of LWP taken during a year (The LWP is considering of past 3 year, if

the

leave without pay i.e. LWP is more than 90 days, then employee is not eligible for the

promotion and removed the name of such employee from promotion list.)
Nature of work done during a period.
70

B) PERFORMANCE EVALUTIONThe performance evaluation mainly includes the various parameters through which the
performance of employee is to be evaluated. Here quality is assessed with brief explanation
.the maximum number is allotted for every parameter through which employees are assessed.
Some of parameter is as follow-

71

ParametersMaximum mark
Jobperformance
15
Knowledgeof work
5
Planning housekeeping and safety
10
Attendance and punctuality.
10
C) PESONAL TRAITS
Conduct
10
Willing to work
Total:- 50

72

STEP 2The controlling officer of the employees assigns numbers on above


parameter in the form.
STANDARD FORM FOR MARKING AS GIVEN BELOW MAY
BE ADOPTEDASSESSEMENT RANGE

OF RANGE

MARK
FOR

MAXIMUM

OF RANGE

OF

MARK FOR A MARKS

FOR

MAXIMUM

A MAXIMUM

OF 10 MARKS OF 5 MARKS

OF 15 MARKS
EXECELLENT

13-15

9-10

HIGH

10-12

7-8

AVERAGE

7-9

5-6

BELOW

4-6

3-6

0-3

0-3

0-1

AVERAGE

AVERAGE
POOR

STEP 3Now other information about the employees are recorded as1)

73

a) Disciplinary action taken


b) Any other defect in character which may affect his/her efficiency.
2)
a) Any distinctive award or reward received by employee.
b) Any meritorious or innovative task taken up or significant improvement made.
c) Any specific contribution during a year toward official language Hindi, Productivity,
Suggestion, Scheme and quality circles.

3)
a) Honesty including loyalty to the company through fullness ,frankness and observance of
secrecy.
b) Assessment of integrity. If anything adverse has come to your notice, please specify it also.
NOTE:
In case there is any doubt the integrity of the employee ,the column in the ACR form should
be left blank and a secret note may be recorded and follow up action the doubt are cleared,
the employees integrity should be certified and if the doubt are confirmed this should be
recorded in the ACR and communicated to the employees.

4) There basic strength and aptitude is mentioned.


5) State of his/her health.
6) Is he/she fit for promotion which is assessed as- Yes or No
7) Check whether the employee is fit for house changing or not. If the employee has the
leadership quality, ability skills etc. then the employee is recommended for the house
changing, promotion by the controlling officer.
STEP 474

General remarks were given by initiative officer.


STEP 5Remark were given by the approving officer asOutstanding

(41-50)

Very good

(35-42)

Average

(15-24)

Below average

(25-34)

Poor

(0-14)

NOTE:
1) If the employee get outstanding grade then the initiating officer have to give citation for
outstanding justification.
2) If the employee get poor and below average grade, then same is communicated to the
employees.
STEP 6Remark of countersigning officer taken as1) Grading accepted
2) Whether adverse mark/grading communicate. Yes or No or Not applicable

75

2.8.2 PERFORMANCE APPRAISAL SYSTEM FOR SUPERVISORS (S4 AND


ABOVE):-

1. Broad Frame Work


The system will have three phases:
a. Performance Planning
b. Mid-year Review
c. Final Review
Assessment will be on two aspects:
Part A :

Performance

Part B :

Competencies

Part A will comprise three sections:

KRA Section (40%)

Routine Responsibilities (40%)

Relative Contribution to Group Objectives (20%)

2. ROLES INVOLVED
i. Appraisee: The Supervisor being assessed.
ii. Appraiser: Necessarily an Executive as per current DOP as under.

76

Appraisee

Appraiser

S4

Not below E2

S5

Not below E3

S6

Not below E4

S7/S8

Not below E5

iii. Reviewer:Appraiser s Appraiser in MAP.

3. DETAILS OF THE SYSTEM


A. PERFORMANCE PLANNING:
WORK FLOW: APPRAISEE

APPRIASER

REVIEWER

Appraisee (supervisor) will initiate performance planning; it will be reviewed by his


Appraiser and finalized by his Reviewer.

There will be two sections in the Performance Plan KRA Section and Routine
Responsibilities Section.

KRA Section:

77

a.

Total Weightage for the KRA Section will be 40%.

b.

A standard list of KRAs will be available in the system to select from.

b.

There will be Provision to select minimum three and maximum five


KRAs.

c.

Appraises can select KRAs from the standard KRA list or type out
their KRAs directly in their plan.

d.

Appraise will assign five target levels to each KRA - Level 5 being the
highest and Level 1 the lowest.

e.

Appraisee will assign weightage to each KRA in the range of 5-20.

f.

There will be an Action Plan box where the Appraise will have to write
Action Plan, Resources, Assumptions& Milestones for each KRA.

78

Routine Responsibility (RR) Section:

a.

Total Weightage for the RR Section will be 40%.

b.

There will be a provision to take minimum five and maximum eight


RRs.

c.

Individuals can select from the Suggestive list of RRs or type directly
in the box provided.

d.

Appraise will assign weightages to each RR in the range of 5-10.

e.

There will not be any targets for this section.

Note: 20% weightage will be reserved for year end assessment of Relative
Contribution to Group Objectives.

79

B. MID YEAR REVIEW:


WORK FLOW:APPRAISEE

APPRIASER

To be done by Appraise and Appraiser only for KRA Section.

Mid-year Review will be initiated by the Appraisee and accepted by the


Appraiser.

Comments on progress of each KRA will be documented by the Appraisee.

Feedback and suggestions for mid-course correction, if any, will be given


by the Appraiser.

There would be no mid-year Review for RR section.

No scores will be assigned at this stage.

80

C. FINAL REVIEW:
Assessment of Part-A
i) KRA Section
WORK FLOW : APPRAISEE

APPRIASER

REVIEWER

Appraisee will initiate and give his assessment of Actual Targets achieved
against each KRA and record his comments. He will not give any score for
the KRAs.

Appraiser and Reviewer will give their assessment of Target achieved


against each KRA & record comments. They will not give any score for
the KRAs.

Score for each KRA and Final Score for KRA section ( weighted average)
will be calculated by the system on a 5-point scale based on achievement
reflected by Reviewer.

The score of KRA Section will be calculated up to a maximum of 2 decimal


places and also displayed upto 2 decimals in the system.

81

ii) Routine Responsibilities Section


WORK FLOW : APPRAISEE

APPRAISER

REVIEWER

Appraisee will give comments on performance against each RR but no


score.

Appraiser and Reviewer will assign Score on 5-point scale against each
RR based on the performance and the effort involved. Scores can be given
upto one decimal point.

Final RR Score (weighted average) will be calculated by the system on a


5-point scale based on assessment score given by Reviewer.

No two individuals under the same Reviewer can have the same score for
RR section.

The score of RR Section will be calculated up to a maximum of 2 decimal


places and also displayed upto 2 decimals in the system.

82

iii) Relative Contribution to group Objectives (Weightage 20%):


[APPRAISER

REVIEWER]

Assessment of this section will be done by Appraiser and Reviewer only.

Appraiser and Reviewer will assign a single Score on this parameter on a


5-point scale, upto one decimal point.

Final Score of this section will be based on assessment score given by


Reviewer.

No two individuals under the same Reviewer can have the same score.

Calculation of Final Performance Score (Part A)

Final Performance Score will be calculated by the system on a 5point scale as a weighted average of scores of (i) KRA section (40%) (ii)
RR section (40%) and (iii) Contribution to group Objectives (20%).

No two individuals under the same Reviewer can have the same
Performance Score.

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The Final Performance Score will be calculated up to a maximum


of 2 decimal places and also displayed upto 2 decimals in the
system.Assessment of Part B (Competencies)
[ WORK FLOW: APPRAISER

REVIEWER]

Assessment of this section will be done by Appraiser and Reviewer only.

Appraiser and Reviewer will assign score on each competency on a 5point scale upto one decimal point.

Final Competency Score ( average) will be calculated by the system based


on scores assigned to each competency by the Reviewer.

No two individuals under the same Reviewer can have the same
Competency Score.

The Final Competency Score will be calculated up to a maximum of 2


decimal places and also displayed upto 2 decimals .
Performance Rating
Through Normalization, the Final Performance Score (Part-A) will be converted
to Rating (A+ / A / B+ / B / C) for calculation of PRP.

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4. USAGE OF SCORES/ RATINGS

Part-A Performance Score converted to Rating (A+ / A / B+ / B / C) will


be used for PRP payments every year.

Part B Competency Score along with Part-A Performance Score will be


used for Promotion in ratio of 20:80.

5. SHARING OF SCORES

Appraise will be able to view the break up of Performance Score (Part-A)


and Competency Score (Part-B) separately as well as the final
Consolidated Score (A+B).

Appraises will be provided 15 days for appeal to higher authority, in case


they are not in agreement with the final assessment.

6. IMPLEMENTATION

The new system will be implemented on-line from year 2010-11.

For ease of administration it is recommended that e-MAP Administrators


at Units may also handle implementation and maintenance of PMS for
Supervisors.

85

SWOT ANALYSIS
Strength
ROBUST RESEARCH AND DEVLOPMENT ACTIVITY
LEADING MARKET POSTION

WEAKNESS
SAFETY ISSUE
NON AUTONOMY

OPPORTUNITIES
EXPANDING MANUFACTURING CAPACITY
STRONG ORDER INTAKE

THREATS
INTERNATIONAL LAWS AND REGULATIONS
INCREASING PRICE OF RAW MATERIAL

86

RESEARCH
METHODOLOGY

87

The research design in my case was exploratory research design, which is also known
Formulative Research Design.
The main purpose of my study was getting the opinion of people regarding the performance
appraisal system and what are the problems which are faced by the appraisees and the
appraisers.
The research design in my study was flexible to provide opportunities for considering
different aspects of the problem under study.

Types of Data collected:


Primary: First hand information was received from the employees through questionnaires
and personal interviews.
Secondary: The data from internet was collected to get a better insight and the companys
manual.

SIMPLE RANDOM SAMPLING:


Simple random sampling refers to the sampling technique in which each and every item of
the population is given equal chance of being included in the sample.
Random sampling is sometimes referred to as REPRESENTATIVE SAMPLING. If the
sample is chosen at random and if the sample is sufficiently large, it will represent all groups
in the population. A random sample is also known as PROBABILITY SAMPLE because
every item of the population has equal opportunity of being selected in the sample.

88

DATA ANALYSIS
1. Are you satisfied with the present performance appraisal system (Emap)?
(a) Yes [

(b) No [

If No, then why ..

Interpretation:-More

than half of the employees are satisfied with the present


performance appraisal system. The employees who are not satisfied are mainly from E-1 to
E-3 level.

89

2. Do you think the present system is effective / better than the previous
appraisal system?
(a) Yes [

(b) No [

Interpretation:-

90

70% of employees think that the current system (e-Map) is better than the previous system
(ACR) because earlier their result was totally confidential and was not known to them.3-Do

you think the e-map system reduces biasness?


(a) Yes [

(b) No [

Interpretation:60% of the employees think that this system reduces biasness because the KRA evaluation is
transparent to each appraisee.

91

4-As an appraisee do you face any problem while selecting the KRAs?
(a) Yes [

(b) No [

Interpretation:80% executives have no problem in selecting the KRAs because everything is completely
elaborated and they are given choices to choose among many of their caliber.

92

5-Does your appraiser help you in selecting the KRAs?


(a) Yes [

(b) No [

Interpretation85% executives are helped by their appraisers in selecting KRAs. This shows the good
inter personal relationship between the appraisee and the appraiser.

93

6-Do you think the present list of KRAs cover all aspect of your job?
(a) Yes [

(b) No [

Interpretation:Only 25% executives feel that the present list of KRAs doesnt cover all aspects of their job.
The Executives which are under grade E1- E3 are unsatisfied.

94

7-Do you think the part B of e-map system should be transparent to an


appraisee?
(a) Yes [

(b) No [

32%
YES
NO
68%

Interpretation:More than 65% appraisers feel that part-b should not be transparent to an appraisee as this is
the only part through which they can control the performance of their subordinates.

95

8-Do you get any formal feedback regarding your performance?


(a) Yes [

(b) No [

Interpretation:
70% executive says that they get the formal feedback regarding their performance by their
superiors regularly while carrying out their work.

96

9-Are any steps taken to improve the performance if not up to the mark?
(a) Yes [

(b) No [

If yes, then what .

30%
NO
YES
70%

Interpretation:
30% executives say that the proper training is given to them for upgrading their job whenever
required.

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RESEARCH FINDINGS

Most of the appraisees find problem in selecting their KRAs.


Some appraisers dont help their appraisees in selecting the KRAs as they think its
not their work.
Formal feedback is given by the appraisers on day- to- day basis.
Job related training is given to the executives and they think it really helps them in
their further growth.
Most of the executives are satisfied with the current scenario of performance appraisal
as compared to older one.

98

CONCLUSION
From the research it has been concluded that most of the executives who are not satisfied
with the present performance appraisal system are the executives from E1 to E3 level as they
think it is quiet complicated. They find problems in selecting their KRAs from the KRA
master as there are so many KRAs and they have to select the KRAs which are related to
their work. Appraises also want that the score of Part- B of E- Map should be known to them
and the basis on which their score is given. But appraisers feel that the score of Part B should
not be known to appraises as the think it is the only way by which some how they can control
the behavior of the executive. Appraisers dont have any problem with this system as they are
quite experienced.
Appraisers give proper feedback to their appraises on day today basis and proper training or
challenging tasks are given to improve their performance. mainly the formal training is given
at the time of joining the organization but if the employees face any problem later at the time
of their job, their superiors help them in resolving their problems at the same time.
But some appraises feel that they are not given proper feedback and even they dont want any
feedback as they think that they know their work very well.

99

SUGGESTIONS
Proper training program should be conducted about the E-Map system for the new
trainees.
1. Whenever there are any changes in the KRAs the executives should be
informed about it in advance.
2. Executives should be know that on what basis they performance is being
measured in Part-B as this plays an important role at the time of their
promotion.
3. Some personality development trainings should also be provided apart from
mere job oriented training.

100

LIMITATIONS

Little co-operations of some person due to conservative mind.

Some people have no time to give answer.

Sometimes people do not tell truth and fill it just for fun sake.

101

ANNEXURE
Dear Sir / Madam,
I,amVakil Kumar Yadav a student of RAJ, SMS, Varanasi. I am doing summer training on the
topic Performance Management System in B.H.E.L, Varanasi.This survey is for study
purpose only and the information provided by you will be kept strictly confidential.

Date :

Initial :

102

QUESTIONNAIRE
Q1. Are you satisfied with the present performance appraisal system (E-map)?
a. Highly Satisfied
c. Partially Satisfied

b. Fairly Satisfied
d. Not Satisfied

Q2. Do you think that the present system is effective / better than the previous Appraisal
System?
a. Highly Agree

b. Fairly Agree

c.Partially Agree

d. Disagree

Q3. Does this e-map system reduces biasness as per your opinion?
a. Highly Agree

b. Fairly Agree

c.Partially Agree

d. Disagree

Q4. As an appraisee do you face any problem while selecting the KRAs?
a. Highly Agree

b. Fairly Agree

c.Partially Agree

d. Disagree

Q5. Does your appraiser helps you in selecting the KRAs?


a. Always

b. If Needed

c. If Asked

d. Not at all

103

Q6. Do you think the present list of KRAs cover all aspect of your job?
a. Highly Agree

b. Fairly Agree

c. Partially Agree

d. Disagree

Q7. Do you think the part B of e-map system should be transparent to an appraisee?
a. Highly Agree
b. Partially Agree

b. Fairly Agree
d. Disagree

Q8. Do you get any informal feedback regarding your performance?


a. Always

b. If Needed

c. If Asked

d. Not at all

Q9. Does the training helps you to improve your performance?


a. Highly Agree

b. Fairly Agree

c. Partially Agree

d. Disagree

BIBLIOGRAPHY
104

Books of these kinds naturally proved to be very helpful by dealing with


subject matter that is presented here.
BOOKS

Research Methodology, R. Panneerselvam (2008), Research design, Sixth Edition


2008, Prentice Hall of India Pvt. Ltd. Publishers. pg. 285-298

Kothari, research methodology, new Delhi ,vikas publishing house pvt.ltd.pg 125128,150-154

Annual Reports of BHEL of 2012-2013 pg 4,8,10,15,16,18,20,22

General Articles of BHEL (HERP), Varanasi of 2013-2014

WEBSITE

www.bhel.com as on 30th July 2015

www.indianinfoline.com as on 30th July 2015

105

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