BHUSHAN STEEL LIMITED

Dissertation Report
On

“ Role of Performance Appraisal System”

Submitted By:
JYOTI PANDEY

Registration no.-EIILMU/09/F0535

MBA Batch 2009-2011

In Partial Fulfillment of the requirement of the Degree of Master of

Business Administration

Submitted To:
ACADEMIC GUIDE
Mr. MURLI KRISHNA
RAI BUSINESS SCHOOL, HYDERABAD
 DECLARATION

I, JYOTI PANDEY student of M.B.A from Rai Business School, Hyderabad,

hereby declare that I have completed the project on the topic “ROLE OF
PERFORMANCE APPRAISAL SYSTEM” in BHUSHAN STEEL LIMITED as
a part of the course requirement.

I further declare that the information presented in this project is true and original to
the best of my knowledge.

DATE: NAME : JYOTI PANDEY

PLACE: HYDERABAD

ROLL NO.:35084046
 PREFACE
Whatever taught in the classroom proves useful when it is practically
applied. A professional curriculum is not considered completed without work
experience. The practical orientation of management studies is must to qualify as a
potential manager. It is for the reason that 6 weeks training is prescribed as
essential requirement in the course curriculum for MBA.

I got an opportunity to undergo training at BHUSHAN STEEL LIMITED

GHAZIABAD (BSL), which is one of the leading companies in steel companies.
Entering in the organization is like stepping in to a new world. Every concept,
which is taught in the classroom, is practiced in the different dimension in the
organization.

The project titled ''ROLE OF PERFORMANCE APPRAISAL SYSTEM

IN BSL" gave me opportunity to understand process and importance of
performance appraisal in an organization.

During my research, I learned how the day to day problems are tackled by
the executives; how an industrial unit is run, etc. i.e. I saw the actual working of an
organization which left me awestruck. The overall knowledge gained by me will be
reflected in the training report itself.
 ACKNOWLEDGEMENT

This project has been made possible through the direct and indirect co-operation of

various people for whom I wish to express my appreciation and gratitude. In the

preparation of this project report I have received help and encouragement from

different sources.

I am also very thankful to all the faculty members of SRM University for

providing me with their invaluable suggestions and moral support to complete my

report in expected format. A special thanks to my parents who encourage me a lot

during my project session.

I once again thanks to all those who extended their support and co-operation in

bringing out this project work successfully.

(JYOTI PANDEY)

MBA ( 2009-2011)
 CERTIFICATE

This is to certify that the project work done entitled 'Role of Performance
Appraisal Process in BSL' is a bonafide work carried out by Jyoti Pandey,
MBA (4th Sem.) under our supervision and guidance. The project report is
submitted towards the partial fulfillment of 2 year, full time Master of Business
Administration.

This work has not been submitted anywhere else for any other degree / diploma.

FACULTY GUIDE

DATE:
 EXECUTIVE SUMMARY
The history of performance appraisal is quite brief. Its roots in the early 20th

century can be traced to Taylor's pioneering Time and Motion studies. But this is

not very helpful, for the same may be said about almost everything in the field of

modern human resources management. As a distinct and formal management

procedure used in the evaluation of work performance, appraisal really dates from

the time of the Second World War - not more than 60 years ago.

In many organizations - but not all - appraisal results are used, either directly or

directly, to help determine reward outcomes. That is, the appraisal results are used

to identify the better performing employees who should get the majority of

available merit pay increases, bonuses and promotions.

The purpose of this study has been to determine whether the performance appraisal

was used for employee development and whether the appraisal was emphasized as

an important part of the performance appraisal process in steel industry. Also

whether the performance appraisal helps in increasing industry’s profitability.

Our study suggested that the performance appraisal has helped in increasing the

profitability of Bhushan Steel Limited . Certain loop holes has been determined

and suggestions were made.

The study provide a comparative study of BSL with some Private, Government &
Semi-government companies with similar profiles to discuss their appraisal system
& suggest to BSL on the basis of feedback through questionnaire, interview &
observation method. I found that Performance Appraisal process is quite effective
& the management of BSL is constantly making its precious efforts to make the
company the best place to work for in truly professional way.

My analysis is based on sample results. It was difficult to meet personally in

order to get questionnaire filled by senior level employees. There was time
pressure.

Competency based Performance Appraisal process are suggested at middle

& entry levels. As they are measures of individuals psychology make-up &
personality & as such are extremely powerful instruments as find out from our
comparative analysis results. In order to make the proactive, it is required to
provide them such kind of environment & equally have people orientation too in
order to make a company best place to work for high performers & creating a
congenial environment.
 CONTENTS
S.NO CHAPTER Page no

 DECLARATION
 PREFACE
 ACKNOWLEDGEMENT
 CERTIFICATE( BY FACULTY)
 CERTIFICATE( BY COMPANY)
 EXECUTIVE SUMMARY

1) A BRIEF INTRODUCTION AREA OF UNDER STUDY 01-22

INTRODUCTION OF THE PROJECT 01

INTRODUCTION OF STEEL INDUSTRY 03
HISTORY OF PERFORMANCE APPRAISAL 06
OBJECTIVE OF PERFORMANCE APPRAISAL 09
SCOPE OF PERFORMANCE APPRAISAL 10
PURPOSE OF PERFORMANCE APPRAISAL 11
PROCESS OF PERFORMANCE APPRAISAL 13
METHODS OF PERFORMANCE APPRAISAL 16
ROLE OF PERFORMANCE APPRAISAL IN BSL 17
360 DEGREE APPRAISAL AND FEEDBACK 17

2) COMPANY PROFILE 23-44

BRIEF ON BHUSHAN STEEL LTD 24
VISION 27
MISSION 28
PLANTS 29
POLICIES 31
PRODUCTS OF BSL 32
HIERARCHY IN BSL 38
SAHIBABAD PLANT OF BSL 40
BSL EXPENSION PLAN 44

3) SCOPE & IMPORTANCE OF THE STUDY 45

4) OBJECTIVE OF THE STUDY 47

5) RESEARCH METHODOLOGY 48-53

HYPOTHESIS 48
RESEARCH DESIGN 49
SAMPLING TECHNIQUES
51
 TOOLS OF THE STUDY 50

6) LIMITION OF THE STUDY 54

7) FINDINGS AND ANALYSIS 55

8) SWOT ANALYSIS 70
9) CONCLUSION 72
10) SUGGESTIONS 73
13) QUESTIONNAIRE 75
14) BIBLIOGRAPHY 80