Preface

o Acknowledgement o Defining Performance Appraisal o Objectives of Performance Appraisal o Bharat Heavy Electricals Limited Company Profile o Human Resources at BHEL o Why Performance Appraisal o Performance Appraisal for Non - Executives o Promotion on the basis of Performance Appraisal for Supervisors o Bonus through ACR o Performance Appraisal for Executives o Promotion on the basis of Performance Appraisal for Executives o Bonus through E-map o Important Features of E-map o Normalization o Key People: Role of the Appraise Role of the Appraiser Role of the Reviewer Role of the HOD o Steps in Map Performance Planning Creating The Performance Plan Mid Year Review Phase Final Review Phase o Conclusion o Recommendation o Bibliography

Acknowledgement
The making of this project has been a great experience for me at BHEL, Kolkata during the fulfillment of my course. While making this report, I have gained immense knowledge about the "PERFORMANCE APPRAISAL" and what are the policies of the companies towards executives, supervisors, junior executives and non-executive staffs. I wish to extend my sincere gratitude to our Professor Rupa Bhattacharya and Professor T.K. Pal for giving me the opportunity to work at BHEL. I am really thankful to Sivani Ma'am of HR department, BHEL for giving me the opportunity to work on this project work. Last but not least I am very much thankful to Mr. Abhishek Kumar Shaw, HR Executive , HR department for guiding me through this project.

Defining Performance Appraisal

Performance appraisal is the process of obtaining, analyzing and recording information about the relative worth of an employee. The focus of the performance appraisal is measuring and improving the actual performance of the employee and also the future potential of the employee. Its aim is to measure what an employee does. According to Flippo, "performance appraisal is the systematic, periodic and an impartial rating of an employees excellence in the matters pertaining to his present job and his potential for a better job." Performance appraisal is a systematic way of reviewing and assessing the performance of an employee during a given period of time and planning for his future. It is a powerful tool to calibrate, refine and reward the performance of the employee. It helps to analyze his achievements and evaluate his contribution towards the achievements of the overall organizational goals. By focusing the attention on performance, performance appraisal goes to the heart of personnel management and reflects the management's interest in the progress of the employees. It is also defined as : The process by which a manager or consultant (1) Examines and evaluates an employee's work behavior by comparing it with preset standards, (2) Documents the results of the comparison, and (3) Uses the results to provide feedback to the employee to show where improvements are needed and why those improvements are needed. So we can definitely conclude that Performance Appraisal is mainly defined as a periodic process of evaluating the behavior of an employee in the work spot , normally including both the qualitative and quantitative aspects of the job performance.

Objectives Of Performance Appraisal

To review the performance of the employees over a given period of time. To recommend new KRAs. To identify specific training and development requirements of individual employees. To assess the overall organizational performance. To identify the better performing employees who should get the majority of available merit bonuses, and promotion. To identify the poorer performers who may require some form of counseling. To identify and communicate performance expectations and goals and then ensuring the realization of those goals. To measure the gap between the actual and the desired performance. To help the management in exercising organizational control. Helps to strengthen the relationship and communication between superior subordinates and management employees. To diagnose the strengths and weaknesses of the individuals so as to identify the training and development needs of the future. To examine the effectiveness of the other human resource functions of the organization such as recruitment, selection, training and development. To reduce the grievance of the employees.

Essentials Of A Good Performance Appraisal System

The essentials of an effective performance system are as follows:

Documentation means continuous noting and documenting the performance. It also helps the evaluators to give a proof and the basis of their ratings. Standards / Goals the standards set should be clear, easy to understand, achievable, motivating, time bound and measurable. Practical and simple format - The appraisal format should be simple, clear, fair and objective. Long and complicated formats are time consuming, difficult to understand, and do not elicit much useful information. Evaluation technique An appropriate evaluation technique should be selected; the appraisal system should be performance based and uniform. The criteria for evaluation should be based on observable and measurable characteristics of the behavior of the employee. Communication Communication is an indispensable part of the Performance appraisal process. The desired behavior or the expected results should be communicated to the employees as well as the evaluators. Communication also plays an important role in the review or feedback meeting. Open communication system motivates the employees to actively participate in the appraisal process. Feedback The purpose of the feedback should be developmental rather than judgmental. To maintain its utility, timely feedback should be provided to the employees and the manner of giving feedback should be such that it should have a motivating effect on the employees future performance. Personal Bias Interpersonal relationships can influence the evaluation and the decisions in the performance appraisal process. Therefore, the evaluators should be trained to carry out the processes of appraisals without personal bias and effectively.

Bharat Heavy Electricals Limited Company profile

BHEL is the largest engineering and manufacturing enterprise in India in the energy-related/infrastructure sector, today. BHEL was established more than 40 years ago, ushering in the indigenous Heavy Electrical Equipment industry in India - a dream that has been more than realized with a well-recognized track record of performance. The company has been earning profits continuously since 1971-72 and paying dividends since 1976-77. BHEL caters to the core sectors of the Indian Economy, viz. Power, Transmission, Industry, Transportation, Renewable Energy, Oil & Gas and Defence. The wide network of BHELs 15 Manufacturing Divisions, 4 Power Sector Regional Centres, 8 Service Centres, 15 Regional Offices, 4 Overseas Offices, 1 Subsidiary and over 100 project sites spread all over India enables the Company to promptly serve its customers and provide them with suitable products, systems and services -efficiently and at competitive prices. The high level of quality & reliability of its products is due to the emphasis on design, engineering and manufacturing to international standards by acquiring and adapting some of the best technologies from leading companies in the world, together with technologies developed in its own R&D centres. BHEL has acquired certifications to Quality Management Systems (ISO 9001), Environmental Management Systems (ISO 14001) and Occupational Health & Safety Management Systems (OHSAS 18001) and is also well on its journey towards Total Quality Management.

BHEL has Installed equipment for over 1,00,000 MW of power generationfor Utilities, Captive and Industrial users. Supplied over 2,25,000 MVA transformer capacity and other equipment operating in Transmission & Distribution network up to 400 kV (AC & DC). Supplied over 25,000 Motors with Drive Control System to Power projects, Petrochemicals, Refineries, Steel, Aluminum, Fertilizer, Cement plants, etc. Supplied Traction electrics and AC/DC locos to power over 12,000 kms Railway network. Supplied over one million Valves to Power Plants and other Industries. BHEL's operations are organised around three business sectors, namely Power, Industry - including Transmission, Transportation and Renewable Energy - and Overseas Business. This enables BHEL to have a strong customer orientation, to be sensitive to his needs and respond quickly to the changes in the market. BHEL's vision is to become a world-class engineering enterprise, committed to enhancing stakeholder value. The company is striving to give shape to its aspirations and fulfill the expectations of the country to become a global player. The greatest strength of BHEL is its highly skilled and committed team of 46,748 employees. Every employee is given an equal opportunity to develop himself and grow in his career. Continuous training and retraining, career planning, a positive work culture and participative style of management have engendered development of a committed and motivated workforce setting new benchmarks in terms of productivity, quality and responsiveness.