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Performance Appraisal System

HINDUSTAN AERONAUTICS LIMITED


(Asia’s Premier Aerospace Complex)

INTRODUCTION

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 defence. HAL has build over 3000 aircrafts of which
about 95% are for IAF. These comprising 20 different types of which were 11
were of indigenous design. 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 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
nation’s aspirations to attain self-sufficiency 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 is shown by corporate perspective
plan, which embraces the development & production of a Light Combat Aircraft
(LCH), a twill engined Advanced Light Helicopter (ALH) & other design
including the Intermediate Jet Trainer (IJT).

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MISSION
To become a globally competitive aerospace industry while working as an
instrument for achieving self-reliance in design, manufacture and maintainence
of aerospace defence equipment and diversifying to related areas, managing the
business on commercial lines in a climate of growing professional competence.

VALUES OF H.A.L.
H.A.L. is cmmfied to the following values which guide them in all
their activities:
• Customer Satisfaction
• Commitment to Total Quality
• Cost and Time Consciousness
• Innovation and Creativity
• Trust and Team Spirit
• Respect for the Individual
• Integrity

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
o Fighter, transport and trainer aircrafts
o Helicopters
o Aeroengines
o Accessories
o Ground support system
• Manufacture of structural components for satellite and launch vehicles.

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• Software development for aerospace applications.


• Design Consultancy

HISTORY OF H.A.L.

st
Hindustan Aeronautics Limited was formed on 1 October 1964 by
the merger of the Hindustan Aircraft Limited and Aeronautics India Limited.
Hindustan Aeronautics was originally established as Hindustan
Aircraft Limited at Bangalore in Karnataka by the Late Shri Walchand
Hirachand in December 1940, in association with the Govt. of Mysore, as a
Private Limited Company. In June 1942 Govt. of India purchased the interest of
this company and took over the management.
The Harloe trainer and Curtiss Hawk Fighter Aircraft were the first
aircrats produced by Hindustan Aircraft Ltd. And they were successfully test
nd
flown III 1942. However because of the 2 world war the aircraft manufacturing
programme was abandoned in favour of repair & overhaul of aircraft. Over 1000
aircraft such as Fortress, Liberator, Mitchell Bombers, Dakota and Commando
Transport Aircraft and Piston Engineers fitted to these aircraft were overhauled
by Hindustan Aircraft Ltd. During the war years After the war the company
undertook reconditioning and conversion of war Surplus-Dakota aircraft for use
by Airforce/Civil operators and reconditioning of Tiger moth Trainees. Hawker
Tempest fighters and Liberation Bombers for Indian Air Force.
In 1948, with the impetus given by the Prime Minister of India, Shri
Jawaharlal Nehru, the policy for manufacture as well as design and development
of aircraft was revived by the Govt. of India.
A license agreement was entered for the manufacture of the Percival Prentice
Trainer Aircraft and a project was sanctioned for design and development of the
HT-2 aircraft, (an elementary piston engine trainer).The HT-2 aircraft was
successfully developed and was typed certified in January 1953.These
programmes were followed during the 50’s by a series of licensed
projects(Vampire and Gnat)as well as design and development projects (Marut

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and Kiran). This laying as base for the rapid development of our aircraft industry.
Jet engine factory was set up in Bangalore in 1960 for manufacturing Orphus
engine used on Marut and Gnat aircraft.
An aircraft manufacturing deptt. (AMD) was established at Kanpur
in U.P. in January 1960 as an airforce unit for manufacturing of Hawker Sidley
748 twin turbo prop transport aircraft AMD was subsequently with the
Aeronautics India Limited.

AERONAUTICS INDIA LIMITED


The Govt. of India entered into a collaboration agreement Soviet
Union for the manufacture of MIG-12 FL aircraft including its engine and
avionics. Aeronautics India Limited was formed to undertake the manufacture of
MIG-21 aircraft and factories were set up at Nasik in Maharashtra for
manufacture of the airframe. Koraput in Orissa for the Aero-Engine and at
Hyderabad in Andhra Pradesh for the avionics for the MIG aircraft,
Hindustan Aircraft Limited and Aeronautics India Limited were
merged in October 1964 for the formation of the present Hindustan Aeronautics
Limited.

HAL LUCKNOW
The Govt. of India decided to set up facilities for manufacture of
aircraft system and accessories of Lucknow. The foundation stone of Lucknow
division was laid down by our Late Prime Minister Mrs. Indira Gandhi on 8 th
th
January, 1972 and inaugurated by her on 17 November, 1973.
The division was set up with the objective of supplying six types of system
equipment of Kiran and Marut aircraft. The division has diversified its product
range subsequently and presently manufactures over 500 products for all type of
aircraft manufactured at HAL. The division has also built up design and
developed its capability and industry developed electrical, hydraulic and other
items which are manufactured for use in aircraft as well as for fighting vehicles.

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BASIC OBJECTIVES 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 country’s challenging growing needs with especial
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
furtherence of the organizational goals.

 Consistent with the basic objectives if the company, the Personnel deptt. 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.

SPECIFIC OBJECTIVE OF H.A.L.


• Ensure the quality of personnel at all levels and provide them the right

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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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IMPORTANT EVENTS

Some of the important events which have taken place in the history of
H.A.L. are summarised as follows:

The Hindustan Aircraft Limited was set up by late Shri Walchand & Hirachand in
association with the Govt. of Mysore
First product Harlow Trainer and Curlis Hawk aircraft handed over to Govt. of
India.
HAL repaired over 1000 different varieties of aircraft and 3800 piston engines.
Govt. of India took over the management of HAL again after world war.
First pervieval prentice aircraft assembled.
The control of HAL was shifted to ministry of industry to Ministry of Defence.
The Hindustan Trainer-II (HT-2) had its maiden flight.
Aircraft manufacturing department established at Kanpur.
Aeronautics India Ltd. Was formed o manufacture MIG-21 aircraft. These
factories established at Nasik, Koraput & Hyderabad.
HA L was dissolved and its assets merged with Aeronautics India Ltd. and the
Co. by the name of Hindustan Aeronautics Ltd. was formed.
An agreement with U.S.S.R. for license of MIG-21 and aircraft.
Helicopter division was established to manufacture helicopter.
Lucknow division established to manufacture instrument and accessories.
An agreement with USSR for license of MIG-21 BIS aircraft.

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An agreement with British aerospace for manufacturing Jaguar aircraft.


An agreement with USSR for license production of MIG-27 aircraft.
Korwa division of HAL formed.
Design and development of Light Constant aircraft (LCA).
Development of advanced light helicopter(ALH).
Certificate of ISO-9001.
IMGT, a new division at Bangalore.

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.
ROLL’s ROYCE, UK .
NORMALIAN GARE'ITE, USA.
SAGEM, FRANCE.
SMITH, UK.
SUBSIANDARD, USA.
TURBOMECA, FRANCE.
TUMAN & KEY, CIS

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CUSTOMER'S OF HAL

 INDIAN AIRFORCE / NAVY / ARMY / COAST GROUND.


 DEFENCE R&D LABORA TIES / DEPT OF SPACE.
 STATE GOVT. / CIVIL AlATION / 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 I LICENSOR.

AIRCRAFTS DESIGNED & DEVELOPED BY H.A.L.


HT-2 Piston engined trainer
PUSHPAK Light Aircraft for flying club
KRISHAK Air Observation Post
MARUT(HF-24) Ground Jet fighter
MARUT TRAINER Operational trainer
KIRAN MKI & IA & II Basic Jet trainer
BASANT Agriculture
AJEET Light Flight
HPT-32 Piston engine trainer
HTT-34 Turboprop Variant

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(For pictures refer appx.II)


Aircrafts Produced under license at H.A.L.

Percival Prentice, Vampire, Gnat, Mig-2l FL, Mig-2l bis, Mig-27, Jaguar,
Auro (Hs-748), Dornier-228, Chetak, Cheetah.

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 :-

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 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.

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
th
late prime minister Mrs.. Indira Gandhi on 8 January, 1972 and inaugurated by
th
her on 17 November, 1973.

Initially license agreements were agreements were entered into with the
following companies:

a) Dunlop of U.K. for wheels and brakes.

b) Dowty 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.

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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.

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.
G rand Support Equipments :-

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• Ground Power Unit.


• Hydraulic Trolleys.
• Customer Built fuel-Hydraulic Test Rights.
Wheel & Brakes :-
• Main Wheels.
• Nmose Wheels.
• Carbon Composite Brakepads.

Sensors & Switches :-


• Capacitors Type Fuel Content Qualifying Probes.
• Temptation Sensor & Switches.
• Presence Sensor & Switches.
Conventional Instrument :-
• Altimeter.
• Vertical Speed Indicator.
• Jetpipe Temperature Indicator.
Electrical :-
• DC Generator.
• Alternators.
• Transformer Rectifier Unit.
• Intergrated Drive Generator.
• Activators.
Fuel System :-
• Booster Pumps.
• Heat Pumps.
• Fuel Pump.
• Fuel Control Units.

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Environmental Control S ystem :-


• Cold Air Unit
• Venturies.
• Water Extractors.
• Valves.
Precision Manufacturing Capabilities :-
• All Range Of NC Machine Upto 5 Axis.
• Percision Conventional Machine.

Total No. of Employee:


DEPARTMENTS OF HAL In H.A.L., Lucknow
3362
(LUCKNOW DIVISION)

The various departments of HAL, Accessories Division, Lucknow are


mentioned below:
Office
Control
Accounts
Personnel
Transport
Medical
Security
Design
GSE
MSD
Computer
Commercial
M/C Shop
Tool room
A/T
Production Control
MTS
Customer service

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Plant Maintenance
Inst Factory
GLNS
Fuel Factory
Material Control
Technology Cell
AGM (Sectt.)
Process shop
Rubber Plastic
Foundry & Forge
Tool Planning
DRDL
Indigenous cell
NC cell
Training
Civil
System audit
Administration

HRD GOAL

The corporate goals of HRD as defined in the corporate plan 1990-2005


are 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 formalisation plan for each division for training / retaining in


three vital ones viz. composite computer and CNC all of which have a high
turnover.

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

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:-
A) CHIEF MANAGER (P&A)

B) Sr. MANAGER (Admin.)

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C) MANAGER

D) Dy. MANAGER

E) PERSQNNEL OFPICSR

F) ASST. PERSONNEL OFFICE

G) CHIEF SUPERVISOR

H) Sr. ASST. SUPERVISOR

I) ASST. SUPERVISOR

Sr. CLERK

CLERK

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 is 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

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promotion, increments and salary anomalies etc.).


• Ex-Gratia in lieu of bonus and productivity linked annual incentive.
• 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 organisational
structures.
• Re-mustering of ‘Sr.’ prefixed employees
• Maintenance of P.B. register incumbent registers.
• Public Grievances committee.

ESTABLISHMENT SECTION:

• Confirmation of employees / PAR.


• Maintenance of personal records of all the employees computerisation of
personal Heads as per LT. plans.
• Resignation / Termination on grounds of continued ill health / VRS.
• Finalisation / 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 organisation.
• 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 orthopaedically handicapped persons.

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• Grant of special allowance to AME license holder.


• GSLI cases / gratuity etc.
• School fees reimbursement.
• 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 & Amecedent (also for employees working in
sensitive 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 ad hoc 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.
• Identification of training needs based on PAR and preparation of training
modules.
• Performance Appraisal report for officers / ACR for workmen.

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• 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 2
years ........... functional & personnel deptt.
• Organising orientation programme for new officer /officers promoted from
workmen.
• Career planning.
• Computerisation 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 company’s 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 extention of bond agreement & realisation of rent from post
office, Punjab National Bank, Kendriya bhandar and shops of shopping complex
of HAL township.
• 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.
• VIP’s visit to the division.
• Performance and capital budget of P&A deptt.
• Arrangement of domestic & international air tickets.

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• Arrangement of night duty by office.


• Arrangement of hotel accomodation for guests.
• Pro viding guest house accomodation 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 accomodation.
• 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. Computerisation of
activities of the section.
• Preparation deptt. Manual updation,
• 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.

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• Worker’s Participation in Management, Worker’s education scheme.


• Matters regarding issuance of uniform/socks and shoes to employees.
• Grievance redressal procedure for workmen and officers.
• Prime Minister’s shrarn award & P.H. award etc. of the govt. of India.

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, Labour court, Industrial Tribunal etc.
• Disciplinary Enquiry in case of officers & workmen.
• To handle the disciplinary enquiries in case of workmen of the division in
scale-1 to scale-10 and in case of officers upto Grade -III (upto Grade-IV
in case of minor punishment)
• Constant Liason and follow up with the Divison’s Legal
Advisors/Advocates.
• To provide legal assistance arid legal advice to different section of P&A
deptt. And to other deptts.
• 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 organisating regular
inspection.
• Grant of Hindi incentives & Hindi allowance etc.
• Training programs/workshops/seminars in Hindi and Organising of Hindi

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functions.
• Matters regarding Divisional und Nagar level committees for
implementation of Rajbhasha.
• 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 Division’s 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 organising visits of VIP's duty to the Division, including stay,
Transport and seminar etc.

CENTRAL REGISTRY:

• Receiving & delivery of mails within division & despatch of the division's
mail.
• Computerisation of detail of receipt/dispatch.
TRANSPORTATION SECTION:

• Providing Services of company vehicles to internal and external customers.


• Periodical maintenance of vehicles.
• Regular audit of upkeep vehicle.
• House keeping of Transport Section.

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THE CONCEPT

In the present - day society human needs arc 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 co-
operation. However, to be effective with minimum of adverse consequences, it is

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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. 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 ind ividual, 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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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 ele ctive and judious 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.

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:

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Selection Of Topic-
Management 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 me
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 analysed 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 Organization-
Hindustan Aeronautics Limited, through design, development and
production of contemporary aircraft, aeroengines and avionics is committed to
the defence 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. 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 Diploma in Human Resource Development


course in University of Lucknow , there is a mandatory requirement of on the
job training for at least one month. I got an opportunity to do my project in

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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 analyse the
adequacy and suitability of the measures that are followed.

• The purpose of study s also to analyse the Performance Appraisal System is


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.

Research Methodology and Collection Of Data

Study was carried out through subjective and objective


observation, interaction with employees, questionnaires and evaluation of the

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results so obtained. In the project report much attention has been paid on
subjective study because the topic deals with the psycho-social behaviour of
workers.
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
favourable and unfavourable 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. Stydying and Analyzina Service Records: The service


records like output, quality, discipline, discharge & dismissals, accidents,
absenteeism, Grievances, records of individual and departments were
pursued.

3. Journals and Manuals: The yearly journals and manuals was


supplied by various departments and was gone through it deeply.
Information regarding history, achievements and PAS etc. was extracted

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from these manuals.

4. Informal Interviews: The opinion of various category 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
questionnaire. (refer to appx. i)

7. Internet: Lot of information and photographs (see in appendix) were


obtained from the official website of HAL; ( WWW.hal-india.com .)

PREPARATION OF THE PROJECT


• This project is prepared with proper attention and consideration. Every
information which has been given in this report is bases on observation,
interactions and discussions with workers and managerial staff at their
workplace and answer to questionairre.
• During preparation of this project no false data or information regarding the
organization has been supplied, views of all concerned has been included.

PERFORMANCE APPRAISAL THEORY

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Appraisals are judgement of the characteristics, traits and performance


of others. On the basis of these judgements, 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 programme shortly before
World War I.

MEANING OF PERFORMANCE APPRAISAL:

In industry, performance appraisal is a systematic evaluation of


personnel by s upervisors 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.
Perf ormance Appraisal thus is a systematic and objective way of judging the
relative worth or ability of an employee in perform ing 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.
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 determinme 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,

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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.

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 em ployees 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.

UTILITY OF PERFORMANCE APPRAISAL

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Performance appraisal is an important tool of personnel management.


It is a judgement 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.

(h) It gives supervisors a more effective tool for rating their personnel.

(i) It makes for better employer-employee relationship.

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ADVANTAGES OF PERFORMANCE APPRAISAL

The benefits that arises 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.

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.

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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

overcomed.

6. Improved working relationship with the managers.

REQUIREMENTS OF EFFICIENT APPRAISAL SYSTEM

 Validity

 Reliability

 Sensibility

 Practicality

 Acceptability

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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 person’s 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 measures: quantity of work, quality of' work, waste and breakage,
money earned, job knowledge, job tenure, absenteeism, rate of advancement,
self-judgement, judgement by peers and judgement 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. Infact, 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

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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 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-judgement judgement 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 the another individual for him. It is
almost impossible to objectify subjective judgements, 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:

 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 subordinate’s promotion or transfer. The supervisor writes about paragraphon
his subordinate's strengths, weaknesses, intelligent t attitude to work t attendance
t conduct and character, work efficiency, etc. The format and pattern of the report
varies with each supervisor.

 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. These ratings need to be
validated against other methods of evaluation. Hunan behaviour is complex, and
traits such as job knowledge, experience, ability to get things done, etc., are

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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.

 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.

 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.

 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 or serve
which is not indicated to the rater. This basic method has a number of variations.
Sometimes all the statements may be either favourable or unfavourable. In
another variation, from four statements -two positive and two negative -the rater

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picks the most appropriate and the most unappropriate, for the person being
rated .Sometimes, instead of making statements, a simple listing or traits is given.

 Critical Incident
This technique involves three steps. A test of noteworthy (good or
bad) on-the-job behaviour, 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 check list that includes
incidents which define “good” and “bad" workers. Subsequently, supervisors use
these list for evaluating the worker.
 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.
 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 employee.

MODERN METHODS:

 Management by objectives
MBO calls on the subordinate to set his short-term performance

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goals in consultation with his superiot. 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.

• 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.

Appraisal interviews
Many organization require their supervisor, managers, and other
raters to have a periodic discussions 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 have 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 5
levels as follows:

LEVEL GRADE

Level-I I & II

Level-II III & IV

Level-III V & VI

Level-IV VII & VIII

Level-V 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 levels;

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4. Self-appraisal, Management Review Categorization & identification of


Training and Development needs, both by IA & RA.

QUALIFICATION PROFILE

TECHNICAL DISCIPLINE

QUALIFICATIO OFFICERS WORKMEN TOTAL %


N
PH.D 01 - 01 0.04
P.G. (Engg) 38 - 38 1.36
P.G.(Sc.) 03 02 05 0.18
Degree In Engg. 331 21 352 12.15
Diploma In Engg. 169 548 717 25.65
I.T.I./NAC’s 55 1567 1622 58.033
Inter/SSLC etc. 2 26 28 1.00
Middle & Below - 32 32 1.14
599 2196 2795

NON-TECHNICAL DISCIPLINE

Prof. Qualification 11 15 56 885


Post Graduate 12 51 63 995
Graduate 19 230 249 39.34
Inter/SSLC/H.Sec. 06 164 170 26.86
Middle & Below - 95 95 15.01
78 555 633

Training and Development needs, both by IA & RA


1. There will be five formats, one for each level of officers as indicated below:

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2. FILLING UP OF THE FORMATS:

2.1 The format comprises of nine major parts as under:


TO BE FILLED
PART CONTENTS BY
COVER PAGE Bio-data of the appraisee Appraisee
PART-A Quaterly task setting and assessment Appraisee & IA
PART-B Self appraisal Comments on self appraisal & integrity Appraisee IA&RA
PART-C Assessment of Traits IA& RA
PART-D Qualitative assessment of the Appraisee (Pen Picture) IA& RA
General Assessment & Management Review
PART-E Categorization IA& RA
PART-F Training & Development needs IA& RA
PART-G Evaluation by Review Board higher authorities IA& RA
PRB
PART-H Illustrative list of area for training GM/MB/FD/CH
PART-I Check list

3. QUATERLY TASKS & ACHIEVEMENTS:

3(a) The performance Appraisal system envisages setting up quarterly between the Appraisee
and IA. The set tasks would be recorded on the quaterly task setting and assessment sheets. At the
time of setting the tasks, the IA may consult the RA also.
3(b) Quarters for the purpose of PARs would be as follows:

---
Quarter Period
I 1st April to 30 th June
II 1st July to 30 th September
III 1st October to 31 st December
IV 1st January to 31 st March
--

3( c) Task setting for each quarter would be done, jointly by the Appraisee and
th
the IA, by the 7 of the month of each quarter. The maximum of 100 would be

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distributed among all the tasks, based on their relative weightage/importance


separate task setting and assessment sheets are to be used for each quarter and
the same would be signed by both the appraisee and the IA. The task setting
sheets would be prepared in duplicate and one copy will be with the appraisee
and the other with the IA.
3(d) The tasks set should, as far as possible be quantitative or measurable
either in terms of quantity or time limits.
th
3(e) The IA would evaluate the performance of the appraisee, by 7 of the first
month of the subsequent quarter ,after joint discussion with the appraisee, against
the set tasks and will award marks for each tasks, keeping in view the maximum
marks decided for each tasks at the beginning of the quarter.
3(f) Completed task setting and assessment sheet of each quarter would be
retained by the IA and the same would be attached by him with the
Annual/Probationary PAR at the end of the assessment Year/Period.

4. SELF APPRAISAL:

4(a) 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 ap praisal should
be brief and to the point.
4(b) 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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5. LEVEL OF INITIATING/REVIEWING AUTHORITIES:


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

Grade of the Initiating Authority Reviewing Authority


appraisee
I/II Minimum grade III or Minimum grade V or
above above
III/IV Minimum grade V or Minimum grade VI or
above above
V/VI Minimum grade VII Minimum grade VIII
or above or above
VII/VIII Minimum grade IX or Minimum grade X or
above above
IX/X MD/FD CH

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.

6. ASSESSMENT OF TRAITS:
6(a) 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 in part C.1 of the format, indicating marks scored for each
traits out of the maximum marks alloted for each traits both by the IA & RA.
6(b) For he 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.

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For example, if the average marks awarded by the IA in part -A for a year is
70 out of 100, marks against ‘Performance’ in Part-C.1 for an Officer in Grade
I/II will be 56 (i.e. 80% of 70). In case the marks ‘awarded by the IA, the RA will
indicate justification for just variation in Part-C.1.1 of the format, For the
remaining Traits, the IA & RA have to award marks individually out of the
maximum marks indicated against each trait.

6(c ) To remove ambiguity C.1 of the format.

7. SCALE OF GRADATION:
The scale of gradation would be as under:
Total Marks 100-90 89-80 79-50 Below 50
Performance Exceptional Above Average Below
Rating Average Averge

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

8. PEN PICTURE (QUALITATIVE ASSESSMENT):

8(a) Both IA & RA have to give a brief description of the Appraisee at


Part-D of the format, as pen picture.
8( b) 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.

9. GENERAL ASSESSMENT & MANAGEMENT REVIEW


CATEGORIZATION:

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9(a) Both the IA & RA have to indicate the strengths and areas requiring
improvements in respect of the appraisee, with reference to his performance, at
Part-E of the format. This will enable the PRB to get a balanced picture about the
appraisee and would also facilitate positive HRD intervention.

9.(b) 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.

9(c) 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.

9.(d) The assessment should also be made for officers on probation.

10. 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.

11. PERFORMANCE REVIEW BOARD:

11.(a) Performance R view 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.

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The PRB will consult the IA & RA, wherever necessary, if they are not members
of the PRB.
11 (b) Chairman and member of the PRB would be as indicate below:

GRAD
LEVEL CHAIRMAN OF PRB MEMBERS OF PRB
E
I I/II Senior most AGM/DGM in Others AGM/DGMs/
the Division 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 VII/VIII CH MD/FDs
V IX/X CH MDs/FDs

11 (c) Constitution of the Divisional PRBs in respect of officers in Grade I/II


& III/IV/
11 (d) In respect of Complex Officers, MDs will be the Chairman of the PRB
for Officers in grades I to IV also.
11 (e) In respect of Officers in Grades I to VI Corporate Office, (Personnel)
and GM (P&A) will be the members of the PRB. The senior most Director will
be the Chairman of the PRB.
11 (f) The marks and performance rating awarded by the PRB would be final.

12. REMARKS BY HIGHER AUTHORITIES:

12 (a) GMs/MDs/FDs/CH would indicate their general remarks in Part-G of the


format.

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13. PERFORMANCE APPRAISAL OF OFFICERS ON PROBATION:

13(a) 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.

13(b) 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.
13(c) 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.
13(d) 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.

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

Activities Concerned Due Date


Deptt./Officer Grades
I, II & III IV V & VI VII & above

1 2 3 4 5 6
Appraisal to Deptt. 2nd week of 2nd week of 2nd week of 2nd week of

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be sent to march march march march


initining
authority
Report to be -Do 2nd week of 2nd week of 2nd week of
put to MDs march May April
performance 2nd week of
Review May
committee
Report to be -Do-
forwarded

14. FEEDBACKSYSTEM:
14(a) 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 To be intimated by


VII and above Corporate office
V / VI Complex office
I to IV Division office

This communication would be signed by the Head of the P&A


department at Corporate Office / Complex Office / Division Office.
14(b) 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.

14( c) The IA should informthe Appraisee in writing as and when the


need arises.
14(d) Further to the feedback / communication as at paras 15a to 15c
above, the HRD cell should ensure communication of the areas /traits for

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improvement, if any, to the Appraisee, after the report is completed by all


concerned. Such communication would be issued as follows:
I. For Officers upto 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.
II. 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.
III. 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 EXPUNGINGREMARKS ON AREA FOR


IMPROVEMENT:
15(a) If any officer is aggrieved by the communicate for
improvement is certain areas / traits as ret1ected in his performance
appraisal report, he could represent against the same.
15(b) The authorities competent to consider and dispose of the
representation would be as under:

Officers in Grade Competent Authority


I / II / III / IV Concerned GMs
V / VI Concerned MD / FD
VII and above Chairman

15( c) 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.

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15(d) 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.
15(e) Suitable remarks to the effect that such observation have been
expunged are to be made by the Competent Authority in the Performance
Appraisal Report, at the place where the remarks are expunged.
15(f) The officer concerned would be intimated about expunging the
remarks or otherwise, by the HRD cell of the concerned Division /
Complex / Corporate Office.

16 ROUTINGOF THE REPORT:


16(a) 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.

16(b) While forwarding the performance appraisal reports of


Officers in Grade VI &above to 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:

17(a) Performance appraisal in the Vigilance Department will be


raised as indicated below:

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17(a.1) Executive Director (Vigilance), Corporate office, will be the


IA in respect of Heads Of Vigilance Department in the divisions.

17(a.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.
17(a.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. In respect of such officers in Grade IV and above, chairman
would endorse his views in Part G.4 of the format.
17(a.4) After the reports are filled in as at Paras 16(a.l) to 16(a.3)
above, ED (Vigilance) would also complete the column of evaluation by
Performance ReviewBoard at Part G.4 of the report.
17(a.5) Completed reports as at paras (16a.l & above) would be
retained in the office of ED (Vigilance) Corporate office.
17(a.6) Administratively, Heads of Vigilance in each Division/Office
would continue to report to the concerned General Manager.

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 I
to 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

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head of the Systems Audit cell in the divisions, Head of Systems Audit n
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 Paras I 7 ( a) to I 7 ( c )& above.
Head oi 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 as at paras 17(a) to 17(d) would be sent back to
concerned Division /office by the Head of Systems Audit at corporate
office, for retention.
18(f) Administratively Heads of Systems Audit cell in the Divisions/Office
would continue to report to concerned General Manager.

19. APPRAAISAL ON HEADS OF FINANCE,IMM 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 Gof the format.

20. MAINTAINENCE OF PERFORMANCE APPRAISAL


RECORDS

20(a) An upto date biodata 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.
Annexure Number Assessment Period Overall Gradation / Marks
Performance Rating

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20(b) This summary will provide at a glance, the Gradation/Marks/Rating


given to the officer right fromthe beginning of the service.

21. CHECKBy 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
Systemserves the purpose for which it is constituted.

TIME SCALE PROMOTION FOR EMPLOYEES IN


WAGE GROUP A,B,C,D,E&F

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With a view to provide an assured minimum career to the workmen


in wage Group-A,B,C,D,E&F and to ensure that the career opportunities of
workmen do not differ widel from trade to trade and from division to
division. The following schemes of time promotion for the workmen has
been introduced from1/1/1985.
(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 tile
satisfied dates uninterrupted year of service in their groups on as indicated
below and satisfy the other conditions mentioned below:-

TECHNICAL DISCIPLINE:
PROMOTION DIPLOMA IN NAC/ITI/SSLC RELAXED
ENGG./B.SC (WHEREVER QUALIFICATION
PRESCRIBED PRESCRIBED PRESCRIBED
IN R &P IN R&P RULES R&P RULES
RULES
A TO B SCALE
9 Years
05/Interview
B TOC – 7 Years 8 Years 9 Years
Written Test C
TOD 6 Years 7 Years 7 Years
D TO B Both 5 Years 6 Years 7 Years

E TO F 4 Years 5 Years 6 Years


F TO Seale 6 Years 7 Years (SSLC 8 Years (With
not eligible) SSLC)
NON-TECHNICAL DISCIPLINE:
PROMOTION DEGREE PUC/ INTER / RELAXED
SSLC QUALIFICATION

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prescribed R&P
rules
B TOC Scale-05 9 Years
B TOC 7 Years 8 Years 9 Years
C TOD 6 Years 7 Years 8 Years
D TO E 5 Years 6 Years 7 Years
E TO F 4 Years 5 Years 6 Years
F TO SCALE-10 6 Years 7 Years (SSLC 8 Years (With
not eligible) SSLC)

TIME SCALE PROMOTION FOR OFFICERS GRADE-I, II &III

With a view to provide an assured minimum career to personnel in


junior/middle management cadres, the following schemes of time scale
promotion of officers in grade I, II & III has been introduced from
1/8/1984.
1. Time scale promotions is in additional to the vacancy based
promotion effected either through DPC/IMS or open section.
2. Officers should have put in uninterrupted service in each grade as
Indicated in table given below and should have been confirmed in either
existing posts, to be eligible for consideration for the Time Scale
Promotion.

TECHNICAL STREAM

Grade Degree in Engg. Diplorma in Engg. ITI / NAC / SSLC


or equivalent or equivalent
Promotion from 4 Years 6 Years 8 Years

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Grade I to II
Promotion from 5 Years 7 Years Not eligible
Grade II to III
Promotion from 6 Years 8 Years Not eligible
Grade III to IV

NON-TECHNICAL STREAM:

Grade Degree in Arts/Science/ Degree in SSLC


Commerce with relevant Arts/Science/
processional qualification Commerce
Promotion from 4 Years 6 Years 8 Years
Grade I to II
Promotion from 5 Years 7 Years 9 Years
Grade II to III (PUC/
Inter)
Promotion from 6 Years 8 Years Not
Grade III to IV eligible

REVISED PAY SCALE OF OFFICERS AND WORKMEN

Grade / officer Scale


(effective from01-01-97
I Rs. 6550-200-11350/-
II Rs. 8600-250-14600/-
III Rs. 10750-300-16750/-
IV Rs. 13000-350-18250/-

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V Rs. 14500-350-18700/-
VI Rs. 16000-400-20800/-
VII Rs. 17500-400-20800/-
VIII Rs. 18500-450-239000/-
IX Rs. 20500-500-26500/-
X Rs. 23750-600-28550/-

Schedule- B- Rs. 25750-650-30950/-


Schedule- A- Rs. 27750-750-31500/-

PROMOTION CHANNEL FOR NEWWORKMAN

Channel FromScale To Scale Period of


uninterrupted
to be completed
in the lower
scale in years
A A1 A2 6

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A2 A3 7
A3 A4 8
A4 A5 9
B B3 B4 6
B4 B5 6
B5 B6 7
B6 B7 8
B7 B8 8
C C4 C5 5
C5 C6 6
C6 C7 7
C7 C8 7
C8 C9 8
D D5 D6 5
D6 D7 6
D7 D8 6
D8 D9 7
D9 D10 7

ANALYSIS OF PERFORMANCE APPRAISAL SYSTEMAT HAL

The objective of the Performance Appraisal System in HAL is to


change behaviour attitude towards job done. In other words it is result
oriented. It has adonted a philosophy that stress 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
Of Objectives which was propounded by Peter Drucker. HAL has
developed potentially a powerful philosophy of managing and an effective
way of operationalising 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 reviewe

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assiss 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. (refer to appx.-I).
Management’s ViewRegarding: 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 percieve about themselves.

TABULAR ANALYSIS OF RESPONSES


Statements Response (total – 50)
Agree Disagre Partiall Neutral
e y Agree
1. You are aware that PAS 46 2 2 0
exists in your organisation.
2. PAS provides opportunity 10 2 31 7
to improve.
3. Satisfied with the present 29 0 17 4

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PAS.
4. You are assisted & guided 22 8 15 5
fro your superior in your
work.
5. You are informed about 19 10 13 8
the goals & tasks which you
have to achieve.
6. You are counseled by 17 5 20 8
your superior.
7. You get feedback about 14 17 9 10
your performance.
8. You get proper training to 8 4 34 4
improve your weak areas.

Source : Questionnaire

SUPERVISOR’S SELF-RATING CHART


Supervisory activities and Rating (%)
Results Excellent Good Fair Poor
1. Each employee knows 0 100 0 00
what is expected in quantity

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and quality of work.


2. I get my employees in 75 25 0 0
matter that affect them.
3. I delegate responsibility 75 0 25 0
encourage employees to ash
questions and attend training
courses.
4. I try to become better 75 0 25 0
acquainted with my
employees.
5. I give adequate attention 35 35 30 0
to the work environment &
strive to improve both the
mental & physical
conditions.

Source : Questionnaire

FINDINGS
On the basis of the analysis we can conclude that majority or the

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employees are satisfied with the Performance Appraisal System adopted in their
organisation 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 pre determined goals & tasks which they have to
achieve.

a b c d
46 2 2 0

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a b c d
31 10 2 7

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a b c d

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a b c d
22 8 15 5

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a b c d
19 10 13 8

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a b c d
17 5 20 8

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a b c d
14 17 9 10

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a b c d
8 4 34 4

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a b c d
14 6 20 10

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a b c d
9 15 24 2

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a b c d
10 18 16 6

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a b c d
22 20 3 5

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a b c d
24 14 6 6

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a b c d
5 32 6 7

SUGGESTIONS

1. A pre-determined set of standards of performance level should be made in the


beginning.
2. Clear cut indication must be given to the appralsee about what is expected from

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him/her.
3. Organisational goal or tasks should be conveyed to every employee in advance.
4. Both strengths and drawbacks should be communicated to the appraisee.
5. Channel of communication should be completed should be given to the appraisee.
6. For further improving the performance of appraisee, a review counselling session
should be held at regular basis.
7. Training, if required, should be given the priority.
8. Sense of self-appraisal should be culminated in the employee’s also.
9. Aptitude test and other such tests should be held to determine the potential of the
employee for the further advancement.
10. Psychological tests should be held to measure the level of motivation in the
employees.
11. Important decisions should be conveyed through face-to-face communication and
paper correspondence should be minimized.
12. Provision for towards (monetory and non-monetory) should be made for
excellent performances.
13. Performance Appraisal System and its policies should be regularly reviewed to
bring out any amendments, if required, to make the system more effective.

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

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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, behaviour .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.

Bibliography

The following books and materials have been of immense


help to guide me and providing me with relevant matter:
 D
avar R.S., Personnel Management and Industrial Relations ,

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Vikas Publishing House, 1998 .


 Mammoria C.B., Personnel Management
Himalava Publishing House,1996
 Monappa Arun & Sayaddin Mirza.S., Personnel Management
Tata McGraw-Hill Publishing Company Ltd,1979
 Journals of Hindustan Aeronautics Limited
 Various Inputs obtained from records and files kept with
Personnel and Administration Department.
 Website of HAL; www.hal-india.com .

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