J MPR

PROJECT REPORT
ON
EMPLOYEE SATISFACTION TOWARDS PERFORMANCE APPRAISAL IN ONGC
Submitted by:
Submitted to:
For the partial fulfillment of Bachelor of Business Administration
Employee Satisfaction Towards Performance Appraisal In ONGC
AFFLIATED TO GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY An ISO-9001: 2000 Certified Institute Recognized by UGC u/s 2(f)
Maharaja Surajmal Institute
CERTIFICATE
This is to certify that this project report titled Employee Satisfaction Towards Performance Appraisal In ONGC is an original work submitted by Jijo Abraham, Enrollment No. 01621201709, BBA III semester student of Maharaja Surajmal Institute for the partial fulfillment of Bachelor of Business Administration (BBA) program of Guru Gobind Singh Indraprastha University under the guidance of Ms. Arti Malik and the same has been submitted as per the requirement of course.
Ms. Arti Malik Project Guide
ACKNOWLEDGEMENT
The project was a worthwhile learning experience. I owe my deepest thanks to one and all for their valuable contribution. I wish to place on record my gratitude to program Coordinator and my Project Guide, Ms. Arti Malik, Maharaja Surajmal Institute, for her valuable guidance, suggestions and sympathetic and encouraging attitude at every stage.
I shall be failing in my duties if I do not express my gratitude to other faculty members and friends for their useful help at various stages.
INDEX
S.NO
I COMPANY PROFILE
TOPIC
PAGE NO.
1
II
Chapter-1 PROJECT PANORAMA
III
Chapter-2 PERFORMANCE APPRAISAL SYSTEM AN OVERVIEW
IV
Chapter-3 PERFORMANCE APPRAISAL SYSTEM AT ONGC
15
Chapter-4 RESEARCH METHODOLOGY
18
VI
Chapter-5 DATA ANALYSIS & INTERPRETATION
22
VII
Chapter-6 LIMITATIONS OF THE STUDY
45
VIII
Chapter-7 CONCLUSIONS & RECOMMENDATIONS
46
IX X
ANNEXTURES
50 55
BIBLIOGRAPHY
COMPANY PROFILE
Oil and Natural Gas Corporation Limited (ONGC) was born as a modest corporate entity on 14th August 1956 as Commission and has grown into a full-fledged horizontally integrated upstream petroleum company. Today, ONGC is a flagship public sector enterprise and Indias highest profit making corporate, which has achieved the landmark of registering a net profit of Rs. 6197.87 crores in the year 2001-02. Since its inception ONGC has produced more than 600 million metric tons of crude oil and supplied more than 200 billion cubic meters of gas, thus fuelling Indias economy. In its annual survey (2000-01) of Asias 1000 largest companies, the Asia Week magazine ranks ONGC as the fourth most profitable oil and gas Company in Asia, after Petro china, Petroleum National of Malaysia and China National Offshore Oil. With its market capitalization crossing Rs. 50,000 crores, ONGC was ranked as Indias most valuable company in Economic Times 500 as well as Business Today 500 listings for the year 2001-02.
Vision and Mission To be global leader in integrated energy business through sustainable growth, knowledge excellence and exemplary governance practices. Dedicated to excellence by leveraging competitive advantages in R&D and technology with involved people. Imbibe high standards of business ethics and organizational values. Abiding commitment to safety, health and environment to enrich quality of community life. Foster a culture of trust, openness and mutual concern to make working a stimulating and challenging experience for our people. Strive for customer delight through quality products and services.
CORPORATE HISTORY
During the pre-independence period, the Assam Oil Company in the northeastern and Attock Oil company in northwestern part of the undivided India were the only oil companies producing oil in the country, with minimal exploration input. The major part of Indian sedimentary basins was deemed to be unfit for development of oil and gas resources. After independence, the national Government realized the importance oil and gas for rapid industrial development and its strategic role in defense. In 1955, Government of India decided to develop the oil and natural gas resources in the various regions of the country as part of the Public Sector development. With this objective, an Oil and Natural Gas Directorate was set up towards the end of 1955, as a subordinate office under the then Ministry of Natural Resources and Scientific Research. In 1955, Government of India decided to develop the oil and natural gas resources in the various regions of the country as part of the Public Sector development. With this objective, an Oil and Natural Gas Directorate was set up towards the end of 1955, as a subordinate office under the then Ministry of Natural Resources and Scientific Research. Soon, after the formation of the Oil and Natural Gas Directorate, it became apparent that it would not be possible for the Directorate with its limited financial and administrative powers as subordinate office of the Government, to function efficiently. So in August, 1956, the Directorate was raised to the status of a commission with enhanced powers, although it continued to be under the government. The liberalized economic policy adopted by the Government of India in July, 1991 sought to deregulate and de-license the core sectors (including petroleum sector) with partial disinvestments of government equity in Public Sector Undertakings and other measures. As a consequence thereof, ONGC was reorganized as a limited Company under the Company's Act, 1956 in February, 1994 and was called as Oil & Natural Gas Corporation Limited.
HUMAN RESOURCE AT ONGC

ONGC has a unique distinction of being a company with in-house service capabilities in all the activity areas of exploration and production of oil & gas and related oil field services. Needless to
emphasize, this was made possible by the men & women behind the machine. Over 18,000 experienced and technically competent executives form the core of our manpower.
HR VISION To attain organizational excellence by developing and inspiring the true potential of companys human capital and providing opportunities for growth, well-being and enrichment.
HR MISSION To create a value and knowledge based organization by inculcating a culture of learning, innovation & team working and aligning business priorities with aspiration of employees leading to development of an empowered, responsive and competent human capital.
HR OBJECTIVES To develop and sustain core values. To develop business leaders for tomorrow. To provide job contentment through empowerment, accountability and responsibility. To build and upgrade competencies through virtual learning, opportunities for growth and providing challenges in the job To foster a climate of creativity, innovation and enthusiasm To enhance the quality of life of employees and their family To inculcate high understanding of 'Service' to a greater cause
HR STRATEGY To meet challenging demands of the business environment, focus of the HR Strategy is on change of the employees' mindset. Building quality culture and resources. Re-engineering and redeployment for maximizing utilization of HR potential. To build and upgrade competencies through virtual learning, opportunities or growth and providing challenges in the job. Re-strengthening mutual faith, trust and respect. Inculcating a spirit of learning & enjoying challenges. Maharaja Surajmal Institute
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Developing Human Resource through virtual learning, providing opportunities for growth, inculcating involvement and exposure to benchmarking in performance.
ROLE OF HR Alignment of HR vision with corporate vision Shift from support group to strategic partner in business operations HR as a change agent Enhance productivity and performance by developing employee competency and potential Developing professional attitude and approach Developing Global Managers for tomorrow to ensure the role of global players
ACHIEVEMENTS
ONGC today, is repositioning itself to foster the principle of relational enterprise through partnerships/ strategic alliances / joint ventures with preferred partners and adopt a business strategy which relies on company skills and positional assets with focus on core business areas and opportunity specific diversification.
JOINT VENTURE GROUP ONGC has recognized the need to expand its business through profitable ventures related to petroleum and energy sectors by entering into joint ventures with other Indian and foreign companies. ONGC-Joint venture group (ONGC-JVG) has been formed to give impetus to joint venture activities in areas other than E&P.
LNG IMPORT & MARKETING A joint venture company, PETRONET LNG LIMITED is in place with ONGC having 12.5% equity interest for import and marketing of LNG in India. Other partners in this venture are IOC, GAIL and BPCL each with 12.5% equity. The remaining 50% equity will be offered to strategic partners, financial institutions and public. The Company is planning to install two LNG terminals (Dahej in Gujarat and Cochin in Kerala) on western coast of India with total capacity of 7.5 MMTPA. Maharaja Surajmal Institute
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EXCOM GROUP The EXPLORATION CONTRACT MONITORING (EXCOM) Group is the exclusive business face of ONGC for jointly operated oil & gas exploration and production ventures within India. It is the nodal agency of ONGC for single window E&P business communication with companies and the government
STRATEGIC / BUSINESS ALLIANCES Oil and Natural Gas Corporation Ltd. (ONGC) is engaged in E&P activities both in Onshore and Offshore. The Corporation is now venturing out to new areas i.e. deep water exploration and drilling, exploration in frontier basins, marginal field development, optimization of field development plan field recovery and other allied areas of service sector. Engagements in these areas will require bestin-class technology, processes and practices and savvy use of the R&D assets to their fullest advantage.
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ORGANISATION CHART
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CHAPTER-1 PROJECT PANORAMA
Employee Satisfaction Towards Performance Appraisal In ONGC STATEMENT OF THE PROBLEM
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To evaluate effectiveness of Employee Satisfaction Towards Performance Appraisal in ONGC
BACKGROUND Today ONGC is the flagship company of India and making this possible is a dedicated team of nearly 40,000 professionals who toil round the clock. ONGC strives towards creating a work environment where each employees potential can be realized optimally and where each employee is valued as a source of tremendous competitive advantage. One of the effective instruments being used in ONGC for helping people grow and develop in organizational settings is Performance Appraisal System (PAS).
RATIONALE As the management of ONGC was keen to know the Managers satisfaction with existing Performance Appraisal System, this study was taken up. In this study, we have tried to evaluate effectiveness of PAS in ONGC through such an exercise; it will be possible to identify areas of strengths and weaknesses in terms of PAS practices. As far as areas of strengths are concerned, the organization will be able to take note of these so as to sustain them. In case of areas of weaknesses, the feedback obtained through the survey will help provide direction for further development of an action plan for bringing about the desired improvements in the existing system.
OBJECTIVES The objectives of the study are as follows: To explore the existing PAS in ONGC. To evaluate the effectiveness of PAS in the organization. To identify the factors responsible for satisfaction or dissatisfaction of managers. To suggest some improvements for the present system.
SCOPE It has been decided that the study would cover the registered office of ONGC in New Delhi.
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CHARTER-2
PERFORMANCE APPRAISAL SYSTEM - AN OVERVIEW
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The term performance appraisal has been called by many names, including performance review, performance evaluation, personnel rating, merit rating, employee appraisal or employee evaluation. A performance appraisal has been defined as any personnel decision that affects the status of employee regarding their retention, termination, promotion, transfer, salary increase or decrease, or admission into a training program.
APPROACHES TO PERFORMANCE APPRAISAL SYSTEM

There have been two prevalent approaches to performance appraisal. The first approach has been the traditional approach. This approach has also been known as the organizational or overall approach. The traditional approach has been primarily concerned with the overall organization and has been involved with past performance. The second approach to performance appraisal has been the developmental approach. This approach viewed the employees as individuals and has been forward looking through the use of goal setting.
Purposes of traditional performance appraisals Performance appraisal for evaluation using the traditional approach has served the following purposes:
1. Promotion, separation, and transfer decisions. 2. Feedback to the employee regarding how the organization viewed the employee's performance. 3. Evaluations of relative contributions made by individuals and entire departments in achieving higher level organization goals. 4. Criteria for evaluating the effectiveness of selection and placement decisions, including the relevance of the information used in the decisions within the organization. 5. Reward decisions, including merit increases, promotions, and other rewards 6. Ascertaining and diagnosing training and development decisions.
Employee Satisfaction Towards Performance Appraisal In ONGC 7. Criteria for evaluating the success of training and development decisions.
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8. Information upon which work scheduling plans, budgeting, and human resources planning can be used.
Developmental Performance Appraisal Purposes The developmental approach to performance appraisal has been related to employees as individuals. This approach has been concerned with the use of performance appraisal as a contributor to employee motivation, development, and human resources planning. The development approach contained all of the traditional overall organizational performance appraisal purposes and the following additional purposes: 1. Provided employees the opportunity to formally indicate the direction and level of the employee's ambition. 2. Show organizational interest in employee development, which was cited to help the enterprise retain ambitious, capable employees instead of losing the employees to competitors. 3. Provided a structure for communications between employees and management to help clarify expectations of the employee by management and the employee. 4. Provide satisfaction and encouragement to the employee who has been trying to perform well.
Expectations of a Manager in doing a Performance Appraisal The following is typically expected from company managers when doing performance appraisals: 1. Translate organizational goals into individual job objective. 2. Communicate management's expectations regarding employee performance. 3. Provide feedback to the employee about job performance in light of management's objectives. 4. Coach the employee on how to achieve job objectives/requirements. 5. Diagnose the employee's strengths and weaknesses.
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6. Determine what kind of development activities might help the employee better utilize his or her skills improve performance on the current job.
PERFORMANCE APPRAISAL PROCESS

The performance appraisal process typically consists of four inter-related steps as follows: 1. Establish a common understanding between the manager (appraiser) and employee (appraise) regarding work expectations; mainly, the work to be accomplished and how that work is to be evaluated. 2. Ongoing assessment of performance and the progress against work expectation. Provisions should be made for the regular feedback of information to clarify and modify the goals and expectations, to correct unacceptable performance before it was too late, and to reward superior performance with proper praise and recognition. 3. Formal documentation of performance through the completion of a performance and development appraisal form appropriate to the job family. 4. The formal performance and development appraisal discussion, based on the completed appraisal form and ending in the construction of a Development Plan.
METHODS OF PAS
Behavioral Anchored Rating Scales The term used to describe a performance rating that focused on specific behaviors or sets as indicators of effective or ineffective performance, rather than on broadly stated adjectives such as "average, above average or below average". Other variations are: Behavioral observation scales
Employee Satisfaction Towards Performance Appraisal In ONGC Behavioral expectations scales Numerically anchored rating scales
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Checklists The term used to define a set of adjectives or descriptive statements. If the rater believed the employee possessed a trait listed, the rater checked the item, if not, the rater left the item blank. Rating score from the checklist equaled the number of checks.
Critical Incident Technique The term used to describe a method of performance appraisal that made lists of statements of very effective and very ineffective behavior for employees. The lists have been combined into categories, which vary with the job. Once the categories had been developed and statements of effective and ineffective behavior had been provided, the evaluator prepared a log for each employee. During the evaluation period, the evaluator recorded examples of critical behaviors in each of the categories, and the log is used to evaluate the employee at the end of the evaluation period.
Forced Choice Method This appraisal method has been developed to prevent evaluators from rating employees too high. Using this method, the evaluator has to select from a set of descriptive statements, statements which applied to the employee. The statements have been weighted and summed to at an effectiveness index.
Forced Distribution The term used to describe an appraisal system similar to grading on a curve. The evaluator had been asked to rate employees in some fixed distribution of categories. One way to do this has been to type the name of each employee on a card and ask the evaluators to sort the cards into piles corresponding to rating.
Graphic Rating Scale
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The term used to define the oldest and most widely used performance appraisal method. The evaluators are given a graph and asked to rate the employees on each of the characteristics. The number of characteristics can vary from one to one hundred. The ratings can be a matrix of boxes for the evaluator to check off or a bar graph where the evaluator checks off a location relative to the evaluators rating.
Narrative or Essay Evaluation This appraisal method asks the evaluator to describe strengths and weaknesses of an employee's behavior. Some companies still use this method exclusively, whereas in others, the method has been combined with the graphic rating scale.
Paired Comparison The term used to describe an appraisal method for ranking employees. First, the names of the employees to be evaluated have been placed on separate sheets in a predetermined order, so that each person has been compared with all other employees to be evaluated. The evaluator then checks the person he or she felt had been the better of the two on the criterion for each comparison. Typically the criterion has been the employees over all ability to do the present job. The number of times a person has been preferred is tallied, and the tally developed is an index of the number of preferences compared to the number being evaluated.
Weighted Checklist The term used to describe a performance appraisal method where supervisors or personnel specialists familiar with the jobs being evaluated prepare a large list of descriptive statements about effective and ineffective behavior on jobs. Management by Objectives The management by objectives (MBO) performance appraisal method has the supervisor and employee get together to set objectives in quantifiable terms. The appraisal method has worked to eliminate communication problems by the establishment of regular meetings, emphasizing results,
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and by being an ongoing process where new objectives have been established and old objectives had been modified as necessary in light of changed conditions.
Assessment centers Mainly used for executive hiring, assessment centers are now being used for evaluating executive for supervisory potential. An assessment center is a central location where managers may come together to have their participation in job related exercises evaluated by trained observers. The principle idea is to evaluate managers over a period of time, say one to three days, by observing (and later evaluating) their behavior across a series of exercises or work samples.
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CHAPTER-3
PERFORMANCE APPRAISAL SYSTEM AT ONGC
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At ONGC, appraisal period commences from April 1 to March 31 of every year. Each employee has a thorough discussion about his performance with his supervisor along with a written review on an annual basis. The Performance Appraisal Review (PAR) format consists of several sections. All the instructions/guidelines are given to ensure the proper use of PAR format. The first section of PAR format pertains to the personal information of an employee. The Job profile of last 10 years has to be given which includes information about Job rotation and Location mobility (transfers). This section is to be endorsed by the PAR officer.
The second section involves the setting up of various Job parameters. At the beginning of the appraisal period, the appraise and the appraiser mutually decide upon different parameters of the appraisers job. The appraise will then briefly report on the basis of self-appraisal in the context of the job parameters, and also refer to the constraints and opportunities as perceived by him. In making the final assessment, highest consideration is given to various attributes that have been set to evaluate the overall performance of the employee. This part of assessment is done through Rating Scale Method and the scale used has been briefly explained as follows:
Grades: A+ (Exceptional) A (Very Good) B+ (Good) C (Adequate) D (Inadequate)
EXCEPTIONAL (A+) This is a person whose job performance and personality attributes are clearly remarkable.
VERY GOOD (A)
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This is someone whose job performance is noteworthy and he makes valuable contribution to the organization. He is one of the top performers.
GOOD (B) This is an individual whose performance consistently meet companys expectations and is unquestionably above average.
ADEQUATE (C) This is a person whose overall performance meets the basic requirements of job and achieves the basic targets.
INADEQUATE (D) This is an individual who needs to improve his performance and has not achieved results inspite of guidance and counseling by appraisers.
The overall assessment of exceptional (A+) must be supported by due comments. Any adverse remark also must be specifically mentioned and special mention should be made about the counseling aspect. All completed PAR formats pass through three levels of management for review and approval. In some cases, moderation may also be done. The role of all these concerned levels of management is briefly described as:
Accepting Authority Accepting authority is a senior officer who is designated under the rules to relook at the performance of the appraisee and review the observations of the first and the second appraiser. He would finally determine and evaluate the performance of the appraisee. In case of disparity between his assessment and that of the appraisee, he has to record the bias of his revised assessment. He is expected to record specifically his comments in case of overall performance grading is A+ or D and if low scores are given for personality traits by either of the earlier two appraisers.
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Reporting Authority The overall performance classification in grades is to be determined by examining both the performance and the personality of the appraisee. The Reporting Authority must offer explanation for his assessment for the special features while making the tick marks to the numerical blocks (A to F).
Reviewing Authority After the detailed analysis of performance / personality traits by the reporting officer, the reviewing officer is required to offer special comments in respect of a few special items like integrity, professional potential for growth and the like.
Various proforma of PAS used in ONGC are annexed in the last
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CHAPTER-4
RESEARCH METHODOLOGY
Employee Satisfaction Towards Performance Appraisal In ONGC Research methodology gives us an overview of tools and techniques used for conducting the research, which is to be systematic and logical. It includes: 1. Research Design 2. Data Sources 3. Sampling Plan 4. Plan of Analysis
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1. RESEARCH DESIGN It is the specification of methods and procedures for acquiring the information needed. Research design is the overall operational pattern or framework of the project that stipulates what information is to be collected from what source by what procedure. The research in present case is based on observation of attitudes and behaviors of employees with respect to their current Performance Appraisal System. Thus, a descriptive research study has been employed. Descriptive studies are well structured and tend to be rigid in its approach. The objective of such a study is to answer the who, what, when, where and how of the subject under investigation.
2. DATA SOURCES There are several ways of collecting the data that differ considerably in cost, time and resources at the disposal of the researcher. The sources of data collection used for this particular study includes: I. II. Primary data Secondary data
I. Primary data Since the nature of this study is descriptive, a survey has been conducted, as surveys are best suited for descriptive research. It helps us to learn about peoples knowledge, beliefs, preferences and overall satisfaction. In a survey, the data can be collected through personal interview, telephonic interview, by observation or by mailing questionnaires etc.
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The technique used for this particular survey is through Questionnaires personally handed over to the executives. The questionnaire used for the survey was the set of 25 close-ended statements arranged in a logical sequence as per requirements. These statements covered the 15 dimensions of PAS that are given below: Awareness about PAS objectives Criteria relevance Participation process in the PAS Linkage of PAS data Determination of developmental value Appraisal complexity Periodicity Performance feedback Performance counseling Potential appraisal Grievance handling Job profile Support Performance standards Effective implementation of PAS
A brief description of each of the above dimensions has been given in the annexure. At the end of the questionnaire, the employees were asked for the improvement of existing PAS. A copy of the questionnaire has been furnished as an annexure. Conducting informal interviews with the employees so that probing could be done for questions where details are needed.
II. Secondary data: Besides direct contact with the respondents, following sources of secondary data have been used. Publications / Circulars/ Office Order of ONGC (Annexed) Internet
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3. SAMPLING PLAN Sampling is a research tool that helps to draw the characteristics of the universe or the population by examining only a small portion of it. The universe of the study is limited to Delhi city only. The sample for this study has been the executives of various companies that have been visited during the course of our project. Various levels of the executives have been taken in the sample. These levels are E1 to E7, signifying the ascending order of executives in the existing hierarchy of the organization. I. Sampling Technique The study is largely based on specially designed questionnaires administered to a random sample of 160 executives. II. Sample Size Since there are four organizations under consideration and the sample size is taken as 40,
though it unlikely represents the population because of the inconvenience caused to the executives.
4. PLAN OF ANALYSIS Questionnaire data have the advantage to provide parity of purposes of comparison across different samples from different organizations, regions etc. as everybody fills up the same questionnaire. The data so collected has been tabulated according to the sequence of questions in the questionnaire. Analysis of the data has been done on the basis of five-point Likert scale. The scale has five variations which are strongly agree, agree, non-committal, disagree, strongly disagree and each degree of agreement is given a numerical value of 5, 4, 3, 2, 1 respectively. The final score is computed by summing up scores of all the responses pertaining to each dimension. A middle degree of agreement i.e. non-committal is used so that the respondents are not forced to answer in a particular way when they, in fact, have no opinion on the issue.
To make things more clear, percentages for each dimension have also been calculated. Bar charts have been used for easy and quick interpretation.
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CHAPTER-5
DATA ANALYSIS & INTERPRETATION
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1. The PAS objectives should be communicated well in advance and should be aligned with business goals.
Sampling unit
Strongly Responses Agree (1) Number 3 3.75
Agree
NonCommittal
Disagree (4) 27 33.75
Strongly Disagree (5) 4
Total Points (400) 242
(2) 31 38.75
(3) 15 18.75
ONGC Percentage (%) 5
40 35 30 25 20 15 10 5 0 1 2 3 4 5 Numbers
ANALYSIS From the above data it has been concluded that the organizations under study can be ranked on the basis of degree of awareness of PAS objectives among the executives as follows: ONGC --------- 242
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INFERENCE The study reveals that majority of the executives are aware of the objectives of PAS. A closer look at this data however reveals that this is not an attractive and encouraging number because the PAS is currently being practiced in the organization and all the executives are a part of it .So we can say although the system is there, as executives are filling up there PAS forms every year but still most of them dont know why they are doing so. The reason for this could the lack of interest in executives for PAS.
2. The criterion for performance assessment should cover all the aspects of job.
Sampling unit
Agree
NonCommittal
Disagree
Strongly Disagree
(2) 13 32.5
(3) 7 17.5
(4) 14 35
(5) 3 7.5
ONGC Percentage (%)
33
14 12 10 8 6 4 2 0 1 2 3 4 5 Numbers
ANALYSIS A look at the table reveals that the organizations under study differ in coverage of the various aspects of the job and follow the given order. ONGC ------- 119
INFERENCE The above findings lead to a conclusion that a considerable number of the executives at ONGC believe that all the relevant aspects of the job are not being covered by the system. They feel that the performance criterion should be different for each of the functional division and not a generalized one.
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3. The Performance targets should be set after mutual consultation between appraiser and appraise.
Sampling unit
Agree
NonCommittal
Disagree
Strongly Disagree
(2) 7 17.5
(3) 6 15
(4) 16 40
(5) 8 20
ONGC Percentage (%)
16 14 12 10 8 6 4 2 0 1 2 3 4 5 ONGC
ANALYSIS On the basis of the above mentioned results these organizations can be arranged with respect to mutual setting of key performance areas (KPAs) or targets in the following order. ONGC --------- 101 Maharaja Surajmal Institute
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INFERENCE As is clear from the table, majority of the executives do not agree that KPAs are set after mutual consultation between the appraiser and the appraisee. The reason that may be assigned for this is that their appraiser does not feel the need to discuss the targets with them as they feel the subordinates know what they have to do as their routine work. Some of the executives agree to this statement and according to them the KPAs are mutually set between appraiser and appraise, though occasionally and depends on the seriousness of the issue or project under consideration and dedication of the boss.
4. The developmental value of PAS is determined by revealing the appraisers strengths and weaknesses.
Sampling unit
Strongly Responses Agree (1) Number 4 10
Agree
NonCommittal
Disagree
Strongly Disagree
(2) 19 47.5
(3) 2 5
(4) 11 27.5
(5) 4 10
ONGC Percentage (%)
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20 15 10 5 0 1 2 3 4 5
ONGC
ANALYSIS The available data provide the following order to organizations with regard to the determination of strengths and weaknesses of an appraise. ONGC --------- 128
INFERENCE A look at the above table indicates that majority of the executives at ONGC have responded positively to the statement that PAS determines their strengths and weaknesses. When these results are displayed, ONGC showed lower score. The executives attribute such consequences to subjectivity of appraisers and lack of transparency in the system.
5. Performance feedback should be continuous, frank and impartial.
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Sampling unit
Agree
NonCommittal
Disagree
Strongly Disagree
(2) 28 23.3
(3) 13 10.8
(4) 33 27.5
(5) 20 16.7
ONGC Percentage (%)
35 30 25 20 15 10 5 0 1 2 3 4 5 ONGC
ANALYSIS On the basis of available data, the organizations can be ranked with regard to performance feedback in the following manner. ONGC --------- 367
Employee Satisfaction Towards Performance Appraisal In ONGC INFERENCE
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When a closer look was given to the above mentioned data, it was found that the majority of the executives at ONGC do not respond positively when it comes to discussion and feedback. The respondents desire a feedback communicating the negative as well as the positive remarks so that they can discover their weaknesses and improve upon them. The employees who receive frequent feedback concerning their performance are more highly motivated than those who do not get feedback. The feedback should be specific, relevant and should provide timely help to satisfy the need most people feel about knowing where they stand. This shows that executives should be given this kind of exposure, which in turn can enhance their morale.
6. Competencies should be properly utilized and higher responsibility should be given to the deserving subordinates.
Sampling unit
Agree
NonCommittal
Disagree
Strongly Disagree
(2) 35 43.75
(3) 15 18.75
(4) 9 11.25
(5) 6 7.5
ONGC Percentage (%)
39
35 30 25 20 15 10 5 0 1 2 3 4 5 ONGC
ANALYSIS On the basis of the above mentioned results, these organizations can be arranged with respect to this dimension as follows: ONGC --------- 289
INFERENCE The majority of executives at ONGC agrees to this statement and believes that their appraiser uses their abilities and competencies properly and assigns higher responsibilities to the deserving subordinates. These are the people who have never experienced any bias in the system and feel that if a person is able and has potential for hard work, nothing can go against him.
Employee Satisfaction Towards Performance Appraisal In ONGC 7. The performance appraisal formats should be easy to understand.
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Sampling unit
Strongly Responses Agree (1) Number -
Agree
NonCommittal
Disagree
Strongly Disagree
(2) 4 10
(3) 7 17.5
(4) 24 60
(5) 5 12.5
ONGC Percentage (%)
25 20 15 10 5 0 2 3 4 5 ONGC
ANALYSIS A look at the table reveals that these organizations can be ranked in the following order on the basis of complexity of the appraisal forms. ONGC --------- 90
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The above findings lead to the conclusion that almost the organization has a simple and easy to understand performance appraisal forms.
8. Job description should be clear and regularly reviewed for full utilization of ones capabilities.
Sampling unit
Agree
NonCommittal
Disagree
Strongly Disagree
(2) 33 41.25
(3) 12 15
(4) 19 23.75
(5) 10 12.5
ONGC Percentage (%)
35 30 25 20 15 10 5 0 1 2 3 4 5 ONGC
ANALYSIS The figures in the table suggest following rank to be given to the organization.
Employee Satisfaction Towards Performance Appraisal In ONGC ONGC --------- 246
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INFERENCE At ONGC, most of the employees feel that their job description is clear to them. One of the reasons they give is that have a specific section in their PAR forms wherein job parameters are to be mentioned by them that keeps them informed about their tasks. But when it comes to redefining the jobs according to ones ability, the executives do not seem to agree.
9. A commitment of support between boss and subordinate should be there.
Sampling unit
Agree
NonCommittal
Disagree
Strongly Disagree
(2) 19 47.5
(3) 4 10
(4) 5 12.5
(5) 1 2.5
ONGC Percentage (%)
20 18 16 14 12 10 8 6 4 2 0 1 2 3 4 5
ONGC
Employee Satisfaction Towards Performance Appraisal In ONGC ANALYSIS
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From the above table, it has been concluded that on the basis of support provided by superiors and subordinates, these organization can be ranked as: ONGC --------- 154
INFERENCES The data reveals that majority of the executives in ONGC receive full support from their superiors and subordinates as they share a healthy relationship. They cooperate with each other and have mutual respect. Such joint efforts helped them to get over the problems more effectively. The negative response can be attributed to the headstrong attitudes of the superiors.
10. Freedom of expression should be given to convey grievances/objections.
Sampling unit
Responses
Strongly Agree (1)
Agree
NonCommittal
Disagree
Strongly Disagree
(2) 20 25
(3) 20 25
(4) 21 26.25
(5) 9 11.25
ONGC
Number Percentage (%)
10 12.5
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25 20 15 10 5 0 1 2 3 4 5 ONGC
ANALYSIS As inferred from the above data, these organization can be ranked on the dimension of expression of grievances and objections as follows: ONGC --------- 241
INFERENCE The given figures reveal that equal proportion of executives at ONGC agree and disagree to the statement that frank and impartial feedback is given to them. The executives provide affirmative response and feel that some transparency and openness exists in the system which enables them to forward their grievances / objections. On the other hand, executives having a contrary viewpoint mention a complete lack of openness in information sharing. They hesitate to communicate their objections and grievances for the fear of being negatively appraised in the future appraisal reviews.
Employee Satisfaction Towards Performance Appraisal In ONGC 11. Performance standards should be set in the organization.
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Sampling unit
Strongly Responses Agree (1) Number 28 35
Agree
NonCommittal
Disagree
Strongly Disagree
Total Points (400)
(2) 37 46.25
(3) 4 5
(4) 9 11.25
(5) 2
ONGC
Percentage (%)
320 2.5
40 35 30 25 20 15 10 5 0 1 2 3 4 5 ONGC
ANALYSIS The available data suggests the following order of the organizations with regard to the setting up of performance standards. ONGC --------- 320
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A closer look at the above data reveals that the majority of the executives at ONGC believe that moderate achievable standards are being set in the organization. However, they feel that setting higher goals would motivate them to perform better. The small number of executives holding the contrary view perceives that setting up very high goals demotivates a person because these goals do not seem to be realistic and/or achievable.
12. Performance counseling serves the developmental purpose of PAS.
Sampling unit
Agree
NonCommittal
Disagree
Strongly Disagree
(2) 22 55
(3) 3 7.5
(4) 1 2.5
(5) 1 2.5
ONGC Percentage (%)
25 20 15 10 5 0 1 2 3 4 5 ONGC
Employee Satisfaction Towards Performance Appraisal In ONGC ANALYSIS
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The organization have been given the following ranking on this particular dimension on the basis of the above mentioned data. ONGC ----------165
INFERENCE An appreciable number of executives at ONGC strongly believe that performance counseling helps the counselee to develop and realize his managerial potential. It provides him an insight into his behavior and enables him to analyze the dynamics of such behavior. It increases his personal and interpersonal effectiveness by providing him feedback about his behavior and helps him to develop various action plans for further improvement. .
13. Performance appraisals should be conducted more frequently.
Annually Number ONGC Percentage (%) 40 16
Biannually 10 25
Quarterly 14 35
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16 14 12 10 8 6 4 2 0 Anually Bianually Quaterly ONGC
ANALYSIS From the above table, it is clear that the people in different organizations differ in their preferences regarding the periodicity of the PAS. At ONGC, most of the executives consulted i.e. 40% preferred annual PAS.
INFERENCE Majority of the employees at ONGC seem to be satisfied with the frequency with which the PAR is being conducted i.e. yearly appraisals but at the same time a considerably good number of executives are of the opinion that performance appraisal review should be held as frequently as possible and have chosen quarterly reviews because they believe they can keep them informed of their respective position with respect to the goals and help them in keeping their efforts well aligned with their targets.
Employee Satisfaction Towards Performance Appraisal In ONGC 14. PAS data should be linked to other subsystems of HRD
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A. CURRENT LINKAGE OF PAS DATA TO HRD SUB-SYSTEMS:
ONGC Strongly Sampling unit Responses Agree (5) Identifying T&D needs Salary administration Promotions (%age) Administrative transfers Rewards & Recognition Career Planning Job Rotation (%age) 7.5 42.5 10 32.5 7.5 Number (%age) Number (%age) Number (%age) Number 22.5 4 10 2 5 2 5 3 60 16 40 12 30 18 45 17 12.5 8 20 4 10 5 12.5 4 5 10 25 15 37.5 12 30 13 2 5 7 107 17.5 3 124 7.5 3 124 128 Number (%age) Number (%age) Number 4 10 9 13 32.5 2 5 24 7 17.5 6 15 5 Agree NonCommittal (4) (3) (2) 13 32.5 21 52.5 2 Strongly Disagree (1) 3 122 7.5 11 79 27.5 160 Total Points (200)
Disagree
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ANALYSIS: The data given in the above table reveals that in ONGC the performance appraisal data is currently being linked to various HRD sub systems in the following order. 1. Promotions 2. Administrative Transfers 3. Career Planning and Job Rotation 4. T & D 5. Rewards & Recognition 6. Salary Administration ---------------- 124 ---------------- 122 ---------------- 107 ---------------- 79 ---------------- 160 ---------------- 128
The executives in the organization feel that performance appraisal data is not put into much use as far as job rotations and career planning is concerned. Rewards and recognition and salary administration has been given the least rating. The low rating for salary administration has been attributed to the fact that all of these organizations are public sector units and have a fixed salary.
B. INTENDED LINKAGE OF PAS DATA TO HRD SUBSYSTEMS:
ONGC Strongly Sampling unit Responses Agree (5) Identifying T&D needs Salary administration Promotions Number (%age) Number (%age) Number 25 62.5 14 3.5 25 (4) 13 32.5 16 40 12 Agree NonCommittal (3) 1 2.5 4 10 3 (2) 1 2.5 5 12.5 Disagree Strongly Disagree (1) 182 1 157 2.5 182 Total Points (200)
Employee Satisfaction Towards Performance Appraisal In ONGC (%age) Administrative transfers Rewards & Recognition Career Planning Job Rotation (%age) 60 35 5 Number (%age) Number (%age) Number (%age) Number 62.5 18 45 31 77.5 29 72.5 24 30 15 37.5 7 17.5 9 22.5 14 7.5 2 5 2 5 2 5 2 5 5 -
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166 189
187 182
ANALYSIS It can be inferred from the data provided in the above table that at ONGC employees want the performance appraisal data to be linked with various sub systems of HRD giving each of them varying degree of importance in the following order:
1. Rewards & Recognition 2. Career Planning 3. Job Rotation, Promotions and T & D 4. Administrative Transfers 5. Salary Administration
----------- 189 ----------- 187
----------- 182 ----------- 166 ---------- 157
Employee Satisfaction Towards Performance Appraisal In ONGC 15. Efforts should be made for the effective implementation of PAS.
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Sampling unit
Responses
Strongly Agree (1)
Agree
NonCommittal
Disagree
Strongly Disagree
(2) 35 29.2
(3) 23 19.2
(4) 40 33.3
(5) 18 15
ONGC
Number Percentage (%)
4 3.3
40 35 30 25 20 15 10 5 0 1
ANALYSIS A look at the table indicates that with regard to the implementation of the system, the organization can be arranged in the following manner. ONGC --------- 327
ONGC
INFERENCE The above findings given in the table uncover the fact that majority of the executives believe that the performance appraisal system in ONGC is not being properly executed. It is felt that the management does not communicate the changes in the PAS design and thus require better communication and monitoring for its effective implementation.
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CHAPTER-6
LIMITATIONS OF THE STUDY
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The limitations include both sampling and non-sampling errors which are as follows:
It has been assumed that the respondents have answered correctly and sincerely, when there is a possibility that views of respondents covered are affected by their myopic thinking and prejudice towards their seniors.
Due to the constraint of time only the major variables of PAS have been studied at macro level.
There may be errors and biases related to the use of random samples.
Interpretation errors may have occurred due to wrong perception of the results or subjectivity biases.
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CHAPTER-7
CONCLUSIONS & RECOMMENDATIONS
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CONCLUSIONS
Conclusions as obtained from the overall analysis are summarized as:
PAS is not entirely a physical process but is highly influenced by the psychology of the person involved. The senior executives are more aware of PAS objectives than most of the lower level executives who do not even know how PAS is likely to benefit them and / or the organization.
The interview data uncovers the fact that executives at middle and higher levels are more satisfied with their PAS than lower level executives. The employees are moderately happy with the kind of mutual support and cooperation they have with each other. The management provides the opportunities to the employees to use their competencies and skills. The interview data revealed that there is lack of openness in information sharing. Most decisions are made at the top and just announced. The results indicate somewhat lack of readiness and sympathetic handling of employee grievances / objections regarding the PAS. The performance assessment criterion does not cover all the relevant aspects of job and is more generalized. Job description does not seem to be clear to all. Although the employees are competent but a proper direction is lacking. The performance appraisal reports constitute a major input in the promotion of the employees rather than reflecting their overall performance.
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Superiors write appraisal reports at the last minute as their routine activity without giving adequate consideration to the qualifications and the performance of each employee. Nepotism and favoritism seem to play a significant role in the PAS. Transparency is missing in the system and only adverse comments are communicated to the employees. There seems to be a general discontent with the implementation of PAS.
RECOMMENDATIONS
The study gave a good idea about the salient features of the PAS at ONGC. Managers seem to be fairly satisfied with their PAS but in comparison with other companies they are less satisfied. In view of this finding, it can be concluded that PAS of ONGC has some shortcomings that need improvement. This section of study is being utilized to offer suggestions attempting to cover the loopholes / shortcomings in the existing PAS.
There is a need to develop a proper communication channel in the organizational hierarchy. The formation of formal as well as informal communication network (grapevine) should be encouraged.
The executives need to be fully aware of the business goals as well as the objectives of the PAS, since both should be in alignment with each other. If the organization does not clearly spell out its business goals and objectives, employees are entitled to assume that it does not have any. This can be achieved by communicating the same formally and informally at regular intervals of time.
Organizations should clearly spell out the role and job description to its employees. Job description should be future oriented which can be achieved by setting some special aspects of the job and focusing on them. The KPAs and performance indicators should be made known to the appraise.
Jobs should be monitored and redefined regularly according to the present skills and capabilities of employees. The involvement of employees in the process of redefining should be emphasized so that they have a better and fruitful future at work. This can be achieved by conducting periodic discussions where clarifications can be sought and offered. Maharaja Surajmal Institute
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Performance appraisal system should be transparent and professional, so as to reduce any rater bias. Some performance standards should be set against which the competencies of an employee can be measured and evaluated. Feedback provided should communicate to employee how his superiors have rated his performance. Facilitating the communicating link between the appraise and the appraiser can do this. One of the means to achieve this is by making the performance appraisal online.
Effective implementation of PAS can be achieved by initiating an OCTAPACE culture in the organization- a culture characterized by Openness, Confrontation, Trust, Autonomy, Pro action, Authenticity, Cooperation and Experimentation.
Before conducting the performance appraisal, relevant training must be imparted to the appraiser. The time interval between two Performance Appraisals should be minimized as per the convenience of the company. There should be a half yearly review of KPAs set on annual basis else KPAs should be set for a period of six months / half yearly only. On the basis of feedback obtained there should be timely counseling provided to the employees. Performance appraisal of seniors could be clubbed with that of the juniors or subordinates so that there is a joint effort to improve performance. Performance appraisal format should be designed in such a fashion so as to highlight the strengths and weaknesses of the performer. Data obtained after conducting performance appraisal should be fully utilized in the areas of training and development, promotions, transfers, reward systems, employee remuneration, manpower planning and job rotation.
Organizations must adopt MBO approach to performance appraisal for effective mutual consultation between appraiser and appraise. Suggestions for the improvement of PAS should be invited and encouraged by the organization.
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Awareness about PAS objectives PAS serves many organizational objectives and goals. Besides encouraging high level of performance, the evaluation system is useful in identifying employees with potential, rewarding performance equitably and determining employee needs for development. These activities are clearly instrumental in achieving corporate plans and long-term growth. It is therefore necessary that these objectives of PAS should be communicated to the employees so that they realize the importance of PAS and believe that by working towards shared goals, everyone will benefit.
Criteria relevance A good PAS should have a set of dimensions that are critical for managerial effectiveness. These dimensions should be universally applicable in the organization and such qualities should be identified keeping in view various jobs performed by the employee and included in the performance appraisal format.
Participation process in PAS Performance appraisal should not take place in isolation. Performance has to be appraised against certain functions and objectives that have been agreed upon by the appraisee and the appraiser an year in advance by setting up the KPAs. This helps both of them to have an understanding of the level, nature, time-taken and quality of performance expected.
Linkage of PAS data Performance appraisal system may be linked with training & development, promotion, rewards & recognition, administrative transfers, career planning and job rotation. The PAS data is linked with T&D because identification of training and other developmental needs partially flow from performance analysis and review. It is also related to promotions in some way as performance appraisal ratings do form one of the inputs for promotions. Reward administration is affected by PAS data for the reason that consistent good performance is to be rewarded for increasing the motivation in employees.
Employee Satisfaction Towards Performance Appraisal In ONGC Determination of developmental value
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Performance appraisal can be an effective instrument for helping people grow and develop in organizational settings. It can be used as a mechanism of continuing education and learning from one another. It helps the employees to identify and overcome their weaknesses and enhance their strengths, which in turn help the organization as a whole.
Appraisal complexity The performance appraisal formats used for the evaluation of employees performance should not be complex to understand. The language should not be complicated and the use of technical jargons should be avoided. The detailed instructions should be given to guide the users to fill up the form.
Periodicity It is the minimum time period after which performance appraisal is conducted. The periodicity may vary between different organizations.
Performance feedback Feedback has a tremendous motivational value, both positive as well as negative. Research by psychologists have established that behavior change occur more by positive reinforcement i.e. rewarding strengths than by negative reinforcement or harping on the weaknesses. Feedback helps the employee in analyzing his strengths, weaknesses, successes and failures.
Potential appraisal It is used to identify the potential of a given employee to occupy higher positions in the organizational hierarchy and undertake higher responsibilities. A good performance appraisal system helps the organization to generate data about employees and their potential for taking up higher positions. It thus helps management to make decisions about suitable persons for a given job and also ion identifying employees whose capabilities can be developed through job rotation, career planning, training etc.
Employee Satisfaction Towards Performance Appraisal In ONGC Grievance Handling
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Existence of a sound grievance handling procedure, readiness of the management to look into the grievance and the complaints of employees, and sympathetic handling of employee problems are some of the features of a grievance system which are necessary for the performance appraisal system to be effective.
Support The superiors and the subordinates role may be to help the appraise to identify many facilitating and inhibiting factors, understanding their role in strengthening the facilitating factors and weakening the inhibiting factors and work out action plans to that effect. In this process the superiors and subordinates help the appraise to understand his difficulties and help him by realistic goal setting and commitment of support.
Role description The clarity of roles and the functions associated with them in the organization is necessary. This requires extensive job description to be available for each job these job descriptions should spell out the various functions involved in performing the jobs. The jobs may be redefined to make the maximum use of the competencies of a person.
Performance standards It involves the definition of performance expectation for the job by developing reliable measures of the performance and clarifying the standards for each of the key duties. the definition of definition of standards sho0uld be as specific as possible. The more specific the results or behaviors used to anchor a standard, the less likely there will be any confusion concerning that standard.
Performance counseling It can be defined as the help provided by the manager to his subordinates in analyzing their performance and other job behaviors in order to increase their job effectiveness. It provides them empathetic atmosphere for sharing and discussing their problems and enables them to generate alternatives for dealing with various problems. It also strengthens the dyadic relationship between the employee and his boss.
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Effective implementation Implementation is the process that turns the performance appraisal system into action and ensures that the system is executed in a manner that accomplishes the appraisals stated objectives. to implement the PAS successfully, the managers need various skills like effective communication and good monitoring skills to evaluate the performance of the appraise.
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REFERENCES
Rao, T.V. and Pareek, Udai, Designing and Managing Human Resource Systems
Dcenzo, David A. and Robbins, Stephen P., Personnel / Human Resource Management
Ashwathappa, K., Human Resource and Personnel Management: Text and Cases Mufeed, S.A.,PAS as a linking instrument for human resource decisions development The Business Review, Vol. 8
ONGC A Profile ONGC The Front-Runners
www.wikipedia.com
www.ongcindia.com

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PROJECT REPORT

EMPLOYEE SATISFACTION TOWARDS PERFORMANCE APPRAISAL IN ONGC

For the partial fulfillment of Bachelor of Business Administration

Employee Satisfaction Towards Performance Appraisal In ONGC

Maharaja Surajmal Institute

Employee Satisfaction Towards Performance Appraisal In ONGC

Ms. Arti Malik Project Guide

Maharaja Surajmal Institute

Employee Satisfaction Towards Performance Appraisal In ONGC

Maharaja Surajmal Institute

Employee Satisfaction Towards Performance Appraisal In ONGC

Chapter-1 PROJECT PANORAMA

Chapter-2 PERFORMANCE APPRAISAL SYSTEM AN OVERVIEW

Chapter-3 PERFORMANCE APPRAISAL SYSTEM AT ONGC

Chapter-4 RESEARCH METHODOLOGY

Chapter-5 DATA ANALYSIS & INTERPRETATION

Chapter-6 LIMITATIONS OF THE STUDY

Chapter-7 CONCLUSIONS & RECOMMENDATIONS

Maharaja Surajmal Institute

Employee Satisfaction Towards Performance Appraisal In ONGC

Maharaja Surajmal Institute

Employee Satisfaction Towards Performance Appraisal In ONGC

Maharaja Surajmal Institute

Employee Satisfaction Towards Performance Appraisal In ONGC

HUMAN RESOURCE AT ONGC

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Employee Satisfaction Towards Performance Appraisal In ONGC

Employee Satisfaction Towards Performance Appraisal In ONGC

Employee Satisfaction Towards Performance Appraisal In ONGC

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Employee Satisfaction Towards Performance Appraisal In ONGC

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Employee Satisfaction Towards Performance Appraisal In ONGC

CHAPTER-1 PROJECT PANORAMA

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Employee Satisfaction Towards Performance Appraisal In ONGC STATEMENT OF THE PROBLEM

To evaluate effectiveness of Employee Satisfaction Towards Performance Appraisal in ONGC

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Employee Satisfaction Towards Performance Appraisal In ONGC

PERFORMANCE APPRAISAL SYSTEM - AN OVERVIEW

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Employee Satisfaction Towards Performance Appraisal In ONGC

APPROACHES TO PERFORMANCE APPRAISAL SYSTEM

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Employee Satisfaction Towards Performance Appraisal In ONGC

PERFORMANCE APPRAISAL PROCESS

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Graphic Rating Scale

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Employee Satisfaction Towards Performance Appraisal In ONGC

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Employee Satisfaction Towards Performance Appraisal In ONGC

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Employee Satisfaction Towards Performance Appraisal In ONGC

PERFORMANCE APPRAISAL SYSTEM AT ONGC

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Employee Satisfaction Towards Performance Appraisal In ONGC

Grades: A+ (Exceptional) A (Very Good) B+ (Good) C (Adequate) D (Inadequate)

VERY GOOD (A)

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Employee Satisfaction Towards Performance Appraisal In ONGC