A CASE STUDY BY ANUPAM SINHA(PGEXP-224) IIM RANCHI

INTRODUCTION

Essar Projects (I) Ltd. is a project execution company of Shashi Ruia &Ravi Ruia led ESSAR Group. Essar Projects is executing projects in different businesses likes Refinery, Steel, Power, Port & Jetty, and Cross country Pipelines of their own home projects and of others clients also. Currently they are working on IOCL (Indian Oil) crude pipeline project i.e. on

Paradip -Raipur Ranchi-Pipeline Project. This Pipeline is to be laid from Paradip to Sambalpur to Raipur and Sambalpur to Khunti (Ranchi). For this site hierarchy of post is as:-

Every employee is working hard to achieve the company goal. In Jan2012, Rating of third Quarter appraisal has been announced. Previously the system of rating announcement was at the end of appraisal year ,But Now Essar has recently started to use a Software called e-compass in which every employee has fill their performance appraisal and the immediate & final reviewer can review that online. After the finalization of rating of Q-3, Suddenly CHR Mumbai decided to analyze the performance behavior of all the regular roll employee of PRRPL sec-c project site.

Methodology of assessment of rating for each employee was as:Total rating to be awarded is 5. Rating-1:- Performance is not good. Rating-2:- Performance is below expectation. Rating-3: -Performance meets the expectation. Rating-4: -Performance exceeds the expectation. Rating-5: -Performance exceedingly exceeds the expectation.

If Employee gets 3.4 in one quarter and at end of all the four quarter he gets on avg. 3.4, then after normalization it will come to 3.But if at end of year after his avg. rating comes 3.6, then it will be normalized to 4.Same process will be adopted for all the rating. So they collected the data of rating of the entire regular roll employee from ecompass. Total no. of Employee (Regular Roll) at site 113.Data collected for as per Department and higher post was as:-

SL. NO. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29

Department/Post PROJECT MANAGER SPREAD INCHARGE-1 SPREAD INCHARGE-2 SPREAD INCHARGE-3 CIVIL DO DO DO DO MECHANICAL DO DO DO DO ELECTRICAL DO DO DO DO H.E.D DO DO DO DO PLANNING & PROCUREMENT DO DO DO DO TOTAL

Rating 4.4 4.3 4.1 4 2.9 3 3.1 3.4 4.1 2.7 3 3.1 3.6 4.0 2.9 3 3.3 3.5 3.6 2.9 3 3.1 3.3 3.6 2.8 3 3.1 3.5 3.8

Number of Employee 1 1 1 1 3 5 6 8 2 3 10 5 7 7 4 3 5 7 2 1 5 4 6 4 2 4 2 3 1 113

ANALYSIS
To analyse the data HR department used the statistical method. The main purpose of HR Department was to know about the average rating obtained by the employee and the rating which has came highest no. of times with this they will be able to analyse the performance of that group. Then in last they were interested to know the range variation i.e percentage of employee who was very near to average or mean. Firstly they treated this data as a population as they have taken the total number of employee from the project PRRPL sec-c at sambalpur, orisssa.

Firstly they grouped that rating data in a class interval and no. of employee would represent as a frequency.

Observation Class

f = frequency/ Number of employee

xf

2.7-2.8 2.9-3 3.1-3.2 3.3-3.4 3.5-3.6 3.7-3.8 TOTAL

2.75 2.95 3.15 3.35 3.55 3.75

5 35 17 19 23 1 113

13.75 103.25 53.55 63.65 81.65 3.75 372.35

From the above table they found the average value as:Mean = f x / N =372.35/113 = 3.295 So the average value or Mean () of total data is 3.295 i.e average rating is found of all the employee of ESSAR at sambalpur site in PRRPL project at sec-c is approx. 3.3 . Now their next target was to know the rating, which has been achieved by maximum number of people. For that they drew a Histogram and frequency polygon. HISTOGRAM

RATING

RATING
From these two diagram ,it is clearly evident that the rating range 2.9-3.0 is having highest no. of frequency/No. of employee(35).But to know the exact value of rating ,they found the mode with help formula from grouped data,as mode will represent the rating achieved by highest no. of people. Mode=Lm + (d1/d1+d2) w Lm= Lower limit of modal class w= width of class, d1=difference between freq. of modal

class and freq. of Just above class, d2= difference between freq. of modal class and freq. Just below class. Mode = (2.9 + (30/48)x .1 ) = 2.9625, so the rating obtained by employee in highest number is 3 .

In last they were curious to know about the deviations and range of total ratings from average as per percentage of total employee For this they decided to find the standard deviation the value which shows variation from mean.

, which gives

Observation class 2.7-2.8 2.9-3 3.1-3.2 3.3-3.4 3.5-3.6 3.7-3.8 3.9-4 4.1-4.2 4.3-4.4 TOTAL

x 2.75 2.95 3.15 3.35 3.55 3.75 3.95 4.15 4.35

f 5 35 17 19 23 1 8 3 2 113

Mean= 3.295 3.295 3.295 3.295 3.295 3.295 3.295 3.295 3.295

(X-) -0.545 -0.345 -0.145 0.055 0.255 0.455 0.655 0.855 1.055

( X-) 0.297025 0.119025 0.021025 0.003025 0.065025 0.207025 0.429025 0.731025 1.113025 2.985225

f( X-) 1.485125 4.165875 0.357425 0.057475 1.495575 0.207025 3.4322 2.193075 2.22605 15.619825

Standard Deviation ()= f( X-)/N

Standard deviation

f X-)/N =

15.6198/113 =.3717

Then they plotted the location of observation of rating around the mean of a bell

shaped frequency distribution curve.

From this graph they got the result that about 68 % of employee's rating were in the range of - and + . About 95% mployee's rating were in the range of
+2 -2

and

.About 99 % of employee's rating were in the range of -3 and +3 .

CONCLUSION
(1)

From the above analysis they found that average rating of all the employee of

Essar Projects (I) Ltd. at PRRPL project sec-c was (3.295 which is approx. Equal to

3.3 i.e average employee performance has meet the expectation as per company policy.
(2)

Maximum number of employee obtained the rating 3

in this performance

appraisal and it means that their performance has meet the expectation as per company policy.which is a satisfactory result. (3) About 70 % of employee performance has been around the avg. Rating or above the avg. Rating ,which is a good performance report.