INDEX

• CHAPTER – 1
 Introduction
 Need for the study
 Objectives of the study
 Methodology
 Limitations of study
• CHAPTER-2
 Industry profile & Company profile
• CHAPTER-3
 Theoretical Framework of the study
 Introduction
 Definition
 Concept
 History
 Methods and techniques for appraising performance.
 Performance appraisal system in VPT
• CHAPTER-4
 Findings
 Suggestions
 Conclusion
 Questionnaire

1
CHAPTER-1

• Introduction
• Need for the study
• Objective of the study
• Research methodology
• Limitations of the study

2
INTRODUCTION
• Appraising the performance of individuals, groups and organizations
is a common practice of all societies. While in some instances these
appraisal processes are structured and formally sanctioned, in other
instances they are informal and integral part of daily activity. Thus,
teachers evaluate the performance of students, bankers evaluate
the performance of creditors, parents evaluate the behavior of the
children, and all of us consciously or unconsciously evaluate our own
actions from time to time. In social interactions, performance is
conducted in a systematic and planned manner to achieve
widespread popularity in recent years.
• The process of HRD helps the employees to acquire and develop
technical , managerial and behavioral knowledge, skills and abilities
and moulds the values, beliefs and attitudes necessary to perform
present and future roles. The process of performance appraisal
helps the employees and management to know the level of
employees performance compared to the standard.
• Performance appraisal is essential to understand and improve the
employees performance through HRD. In fact, performance
appraisal is the basis of HRD. It is viewed that performance appraisal
was useful to decide upon employee promotion, transfer, salary
determination and the hike. But the recent developments in human
resource management indicate that performance is the basis for
employee development. Performance appraisal indicates the level of
desired performance level, level of actual performance and

3
 And the gap between these two. This gap should
be bridged through HRD techniques lik e training,
executive development.

• HRM practices mostly depend upon the strategy by

the company. Similarly , performance appraisal
practices also depend on the strategy. Traditional
techniques of performance appraisal are
appropriate for the stability and sustainable growth
strategies. Similarly, appraisal by the superior is
appropriate for these strategies.
• Modern performance appraisal techniques are
suitable for growth strategies like expansion,
diversification , joint ventures, mergers and
acquisitions. These strategies help the company to
meet competition, build competencies, acquire
strength, enhance market share, innovate and
create new markets, new prodcuts and
technologies.

4
NEED FOR THE STUDY
• Majority of the international business activities
depend heavily on the port. Port plays a key role in
transporting cargo, which cannot be handled
otherwise. Visakhapatnam Port Trust , a major port
which acted as a catalyst in transforming a small town
with population of 60,000 in 1930 into an industrial
metropolitan with a population of nearly 24 lakhs in a
short span of 5 years.
• It has attracted a large number of heavy industries like,
‘HINDUSTAN SHIPYARD LIMITED’, HPCL, STEEL PLANT,
BHPV, ZINC, COROMENDAL FERTILIZERS, etc. that were
established in visakhapatnam only because of port
facilities, besides a number of industries in private
sector and special economic zone.
• Hence it appears very vital to the study the activities of
this organization. VPT is the only organization which
has contributed to the natural harbor facilities and
partly to the efficient management zeal to know the
factor, which contributed to the success of VPT,
inspired me to take up the study on performance
appraisal system prevailing in the organization.

5
 OBJECTIVES OF THE STUDY
• The study of performance appraisal system in VPT will be
carried out with the following objectives :
 To study and know the existing performance appraisal
system in Visakhapatnam Port Trust.
 To know the factors which are appraised in Visakhapatnam
Port Trust for performance appraisal.
 To analyze the drive towards quality that is integrated ino
executive performance appraisal.
 To know the employees opinion and response on
performance appraisal system in VPT.
 To identify and suggest measures to improve effectiveness in
related aspects.

SCOPE OF THE STUDY

• Sound research design is the preliminary stage for the
success of any research design. A research design is simple
and pure way to frame work, plan for the study that guides
the collection analysis of data. The qualitative and effective
research has the characteristics, for instance : Identification
of problem requires specific methods of data collection and
analysis time required. To ensure that the required data is
collected and they are collected accurately and economically.

6
 METHODOLOGY
• After the objective of the study has been clearly stated, the
next step in formal research project is to determine the
source from which the data is required to be collected. The
data collection is an interesting aspect of the study. For the
purpose of achieving data effectively the information
consists of two type of data. The diagram is as follows :

DATA COLLECTION

PRIMARY DATA SECONDARY DATA

1. Personal interview with 1. Information from

officials and employees of various publications
the organization. and journals.
2. 50 employees were 2. Personal report of
interviewed through a VPT.
questionnaire. 3. News , magazines.

7
• PRIMARY DATA:
• The primary data are those which are collected freshly
and for the first time from the employees directly. It is
collected through the following methods :
a) Questionnaire : A structure of questionnaire was
prepared and distributed among the employees.

b) Interview: Personal interviews and interactions with the

employees and labor.

c) Observation: By observing the working environment.

• SECONDARY DATA :
• The secondary data are those which have already been
collected by someone or else which have been passed
through statistics. Various sources are available namely,
central and state government publications, foreign
publications, technical trade journals, books, magazines
etc. and also collected from various files, records and VPT
journals.

8
 LIMITATIONS OF THE STUDY
• As the study revolves around the performance appraisal
of human resource aspects, the overall organization
performance cannot be ascertained. In spite of giving
honest and sincere efforts there are several limitations,
which are as follows :
• The period of study is only for 4 weeks, which is a major
constraint. The perception bias or attitude of the
respondent may be a hurdle to the study.
• The study cannot be oriented with all HRM practices
followed by Visakhapatnam Port Trust because of the
paucity of time requirement.
• The sample size taken for the research is small due to
constraint of time.
• Some of the employees had hesitated in filling up the
questionnaire.

9
 CONCEPT
• Performance appraisal has been used basically for 3
purposes-
Remedial, Maintenance, Development. A performance appraisal
needs to cover all these three purposes with the same focus. If
any purpose predominates, the system will become out of
balance. For instance, if remedial purpose is foremost, then the
performance appraisal may become a disciplinary tool, a form
of charge sheet, a tool of power instead of instrument of
evaluation. If maintenance is the main objective, then the
process may become too short, skimped and pre-functionary
ritual. If there is too much emphasis on development, then the
focus falls on future assignments rather than current job.

• Performance Appraisal is defined as “it is the process of

determining and communicating to an employee how He/She
is performing on the job and ideally, establishing a plan of
improvement”. Performance Appraisal is method of evaluating
the behavior of employees in the work spot, normally including
both the quantitative and qualitative aspect of job
performance. Performance here refers to the degree of the
accomplishment of the tasks that make up an individual job. It
indicates how well an individual is fulfilling the job demands
often the term is confused with effort, but performance is
always measured in terms of results and not efforts. Under
performance appraisal we evaluate not only performance of an
employee but also his potential for development.

10
• Performance appraisal was quiet prominent and the
credit goes to the Warter Dill Scott for systematic
performance appraisal technique of man- an rating
system. It was used for evaluating military officer.
Management started adopting this performance
appraisal for evaluating technical, skilled, professionals
and management personnel as part of training and
executive development programs.

• HISTORY
• Although the interest in the use of performance
appraisal has increased over the last 30 years, the
practice of formally evaluating employees has existed
for centuries. The performance appraisal system has
undergone a lot of changes over the years as shown
below:
• 1900 : Subjective appraisals
• 1940 : Increased psychometric sophistication
• 1950 : Management by objectives [MBO]
• 1960 : BARS
• 1970-1990: Hybrid system and approach

11
• Meaning of HUMAN RESOURCE MANAGEMENT
• Human resources play a crucial role in the
development process of the modern economics.
• ARTHUR LEWIS observed
• “There are great differences in development
between countries which seem to have roughly equal
resources, so it is necessary to enquire into the difference
in human behavior”
• Human resource management is the management
of employee’s skill, knowledge abilities, talent, aptitude,
creativity, ability etc., different terms are used for
denoting Human Resource Management. They are labor
management, labor administration, labor management
relationship, employee-employer relationship, industrial
relationship, human capital management, human assent
management etc. Though these terms can be used
differently. Widely, the basic nature of distinction lies in
the scope or coverage and evolutionary stage. In simple
sense, human resource management means employing
people, developing their resources, utilizing, maintaining
and compensating their services in tune with the job and
organization requirements

12
• Functions of HUMAN RESOURCE MANAGEMENT
• Administration:
• Strategic planning, organization evaluation,
county board relations, policy recommendations,
supervision of department staff.
• Benefits:
• Health insurance, Dental insurance, life insurance,
disability insurance, retirement benefits, vacation, sick
leave, paid holidays, donor program, educational
incentive, uniform allowance, and others.
• Compensation:
• Salary and benefit surveys, job evaluation, job
descriptions evaluation, job descriptions
• Employee relations:
• Disciplinary processes, incident investigations
compliant/grievance procedure, labor management
relations.
• Employee services:
• Enrollment in benefits, employee discounts for
recreational spots, resolution of enrollment or claim
problems, employee newsletters, educational assistance,
and employee service awards.

13
• Fiscal: Staffing budgets, departmental budget,
accounts payable, insurance receivables, insurance
fund management, total package costing. Insurance
receivable, insurance fund management, total package
costing.
• Health and safety: Employee assistance, workers
compensation claims, drug testing, safety compliance
and training.
• Leave of absence:
• State and/or federal family and
medical leave rights, county approved leaves of
absence rights upon on return to work, light duty
assignments for temporary periods.
• Payroll administration:
• Computer head or manual evaluation
systems, supervisory training, compliance with
timeliness standards.

14
• Record keeping:
• Job posting, advertising, testing administration, employment
interviews, background investigations, post- offer employment
testing.

• Recruitment:
• Recruitment is a process to discover the sources of
manpower to meet the requirements of the staffing schedule
and to employ effective measures to meet the requirements of
the staffing schedule and to employ effective measures for
attracting the manpower in adequate numbers to facilitate
effective selection of an effective workforce.
• Selection:
• After identifying the sources of human resources, searching
for prospective employees and stimulation helps to apply for
jobs in an organization, the management has to perform the
function of selecting the right man at right job and at the right
time.
• Separations & terminations:
• Rights upon termination of employment, severance
benefits, unemployment compensation, exist interviews.

• Training & development:

• Country-wide needs assessment, development of supervisory
and management skills, employee training and workshops.
Benefits orientation for new and transferring employees.
Supervisory newsletters.
• Salary & benefits:
• Salary/wage plans, employee benefits.

15
• IMPORTANCE OF HUMAN RESOURCE MANAGEMENT
• Attract highly qualified and competent people.
• Ensure that’s the selected candidate stays longer with the company.
• Make sure that there is match between cost and benefit.
• Helps the organization to create more culturally diverse workforce.
• SCOPE OF HRM ORGANIZATIONAL LEVEL:
• The scope of HRM is extensive and far reaching. Therefore, it is very
difficult to define it concisely. However, we may classify the same under
following heads
•
HRM in personnel management:
• This is typically manpower management that involves manpower
planning, hiring (recruitment & selection), training and development,
induction and orientation, transfer, promotion, compensation, layoff
and retrenchment, employee productivity. The overall objective here is
to ascertain individual growth, development and effectiveness which
indirectly contribute to organizational development.
• HRM in employee welfare:
• This particular aspect of HRM deals with working conditions and
amenities at workplace. This includes a wide array of responsibilities
and services, welfare fund, social security and medical services. It also
covers appointment of safety officers, making the environment worth
working, eliminating, workplace hazards, and support by top
management, proper ventilation and lighting, sanitation, medical care,
sickness benefits, employment injury benefits, personal injury benefits,
maternity benefits, unemployment benefits and family benefits.
• HRM in industrial relations:
• Since, it is highly sensitive area, it needs careful interactions with labor
or employee unions, addressing their grievances and settling the
disputes effectively in order to maintain peace and harmony in the
organization. It is the art and science of understanding the employment
relations, joint consultations, disciplinary procedures, solving problems
with mutual efforts, understanding human behavior and maintaining
work relations, collective bargaining and settlement of disputes.

16
• Human Resources Department at VISAKHAPATNAM PORT TRUST
• This department looks after the needs and recruitment the present
employees. This department includes number of function which is as follows:
• Training and development – it includes technical, soft skills and process
related to training.
• Process and policies – it contains all the rule and regulations that need to be
followed by the employees.
• Appraisal and increment – it is in formal feedback to the employees about
their performance and the conduct of work.
• Induction – involves the information to the new employees about the
company, job, departments etc.
• Motivational activities and entertainment – involves motivating the
employees to improve their productivity.
• Roles and responsibilities – that every individual employee needs to fulfill.
• Key result area (KRA) – it is the measurement quantifiable of output for the
role of responsibilities.
• Employee separation – includes resignation and dismissal.
• Joining formalities – take place when a new employee joins the company.
• Computerization
• Helpdesk
• Employee verification – take place at the time of joining of the new
employee.
• Surveys
• Project trainees
• Counseling and grievance handling – both are different as counseling is
basically helping out in personal problems whereas, grievances handling
involves the handling of complains that the employees has towards the
management.
• All the above head are included in the human resource development and the
overall development of individual’s employees which in turn increases the
overall profit of the company.

17
 Chapter-2

• Industry Profile

• Company Profile

18
• INDUSTRY PROFILE
• INTRODUCTION TO INDIAN SEA PORTS
• Ports are commonly known as place of safe shelter
with necessary infrastructure, for purpose of trade.
In that view, there are airports and seaports.
Seaports are gateways to the world. Seaport is an
essential link in the international maritime transport
chain. At present, over 85% of the international trade
goes by sea. In case of developing countries like ours,
percentage of international trade would be in the
rank of 75% - 85%. So, there is imperative need for
all the seaports in our country to expand rapidly.

• CLASSIFICATION OF PORTS
• Ports in India are classified into 3 categories:
• Major ports
• Minor ports
• Satellite ports

19
• Indian government has a federal structure, and according to its
constitution, maritime transport is to be administered by both
the central and state governments. While the central
government’s shopping ministry administers the major ports,
the minor and intermediate ports are administered by the
relevant departments or ministries in the 9 coastal states
Andhra Pradesh, Odisha, West Bengal, Tamil Nadu, Kerala,
Karnataka, Goa, Maharashtra and Gujarat. Several of these 187
minor and intermediate ports have been identified by the
respective governments to be developed, in a phased miner, a
good proportion of them involving public – private partnership.

20
21
• SHIPPING:
•
Major ports handled over 74% of all cargo traffic in 2007. All major ports, except
one Ennore port are government administered, but private sector participation
in ports has increased. There are also 7 shipyards under the control of the
central government of India, 2 shipyards controlled by state governments, and
19 privately owned shipyards.
•
As of 2000, there were 102 shipping companies operating in India, of which five
were privately owned and based in India and one was owned by Shipping
Corporation of India. There were 639 government owned ships, including 91 oil
tankers, 79 dry cargo bulk carriers and 10 cellular container vessels, Indian-
flagged vessels carried about 15% of overseas cargo at Indian ports for financial
year 2003.
•

THE MAIN ACTIVITIES OF PORT:

•
Maintenance of port approaches, navigable channels and alongside berths,
dredging, conservancy, hydro graphic surveys.
•
Pilot age, towage, berthing and unberthing of visiting ships.
•
Handling, warehousing and transportation of goods in port area.
•
Civil, mechanical and electrical engineering and maintenance of harbor crafts
and plants.
•
Fire fighting and fumigation.
•
Stores.
•
Medical, welfare, housing etc.
•
Management of port properties and estates.
22
• To carry out various activities, each port engages different types
of labor. The workers employed by the port authorities are
generally called “Port workers” and they work on shore. For
work on board the ship, workers registered with Dock labor
Board (DLB) known as Dock labor are engaged. The DLB has
been amalgamated into VPT w.e.f 26-09-2008 duly renamed as
CHD (Cargo Handling Division) functioning under the control of
Traffic Manager.
• Ports are classified as Major Ports, Medium Ports and Minor
Ports. The Major Port Trust Act, 1963 and The Indian Sea Act,
1908, generate the Major Ports and the rules and regulations
framed there under.
• Each Major Port has a Board of Trustees representing various
interests connected with the port operations and shipping
industry. The Chairman of each Major Port Trust is appointed by
the central government. Besides Chairman, the Port Trust Board
consists of Deputy Chairman, representatives of customs,
Railways, defence, state owners, shippers etc. All members of
the board, Chairman and Deputy Chairman are part time
members.

23
• COMPANY PROFILE
• MEANING OF PORT:
• A PORT:
• A transshipment point between sea and surface transport
and entry and exit for imports and export trade plays
unique role in the country’s transport system. A port is
place by shore where ships may run into shelters to load
and unload. According to the encyclopedia of the social
equipped to facilitate the transshipment of fright
between water and land carriers.

24
• A HARBOUR:
• It is a body of water protected from wind and wave action with
sufficient depth and with bottom of good holding ground- in that
vessel may find heaven in and anchor safely.
• PORT VISION & MISSION:
•

• VISION OF VISAKHAPATNAM PORT TRUST:

• To be the most preferred port in South Asia offering services of
global standards.
• MISSION OF VISAKHAPATNAM PORT TRUST:
• To be the major partner in meeting the logistics requirements of
the importers and exporters.

25
 VISAKHAPATNAM PORT TRUST
• Visakhapatnam port is one of 13 major ports in India
and the only major port of Andhra Pradesh. It is India’s
2nd largest port by volume of cargo handled. It is located
on the east coast if India and is located midway between
the Chennai and Kolkata Ports. Visakhapatnam Port was
opened on 19 December 1933. It is owned by Ministry Of
Shipping and Government of India. Shri. M. T.
Krishna babu, IAS is the Chairman of Visakhapatnam
Port Trust and also the Chairman of Dredging
Corporation Limited (DCI).
• LAYOUT OF THE PORT:
• Visakhapatnam Port has three harbours - the outer
harbor, inner harbor and the fishing harbor. The outer
harbor has 6 berths capable of handling vessels with a
draft up to 17 meters while the smaller inner harbor has
18 berths that are Panamax compatible. Vizag Seaport
owns two berths in the inner harbor; berth EQ-8 is fully
mechanized and berth EQ-9 berth is not. The Dolphin's
Nose Hill to the north of the entrance channel protects
the harbor from cyclones that strike the east coast. The
port is located on the area of a creek through which the
coastal river Narava Gedda joins the sea.
26
• LOCATION OF PORT:
• Visakhapatnam Port Trust is one of the leading major ports of
India. The Port is located on the east coast of India in between
Chennai and Kolkata at a latitude of 17 42’00” North and
longitude of 83 23’00” East and the time zone is UTC/GMT
+5:30. The Port has 3 harbors with a water spread of 200
hectares and 6 berths and the inner harbor with a water spread
of 100 hectares has 18 berths.
• Bestowed with natural deep – water basins, the outer harbor is
capable of accommodating vessels up to 200,000 DWT and draft
up to 18.1 maters. The inner harbor is capable of
accommodating fully laden Panamax vessels with draft up to
14.5 meters, with tide advantage.
• ORIGIN & HISTORICAL MILESTONES
• The need for development of a port in this natural bay was spelt
by the British Rulers as far back as 1858 and the first detailed
report “VIZAG - THE PORT OF CENTRAL PROVINCE” was
published in 1877. This proposal however was temporarily
frozen due to the advent of the First World War. It was only in
1914 that the proposal for construction of harbor at
Visakhapatnam was initiated by the then Bengal – Nagpur
Railways. During 1922, Bengal Nagpur Railway revived the
proposal of Col Cartwright Rind of British Admiralty for the
construction of an India harbor. The actual construction
commenced in 1927 and the port which has only a road stead
port till then, was opened to a passenger ship S.S. Jala Durga of
the Scindia Steam Navigation Company. 27
• Visakhapatnam was an ancient Port City which had trade
relations with the Middle East and Rome. Ships were
anchored at open roads and were loaded with cargo
transported from Visakhapatnam shore by means of small
Masula Boats. A reference to Vizagapatnam merchant is
available in the inscriptions of Sri Bheemeswara Swamy
Temple (1068 AD), East Godavari District, Andhra Pradesh.
During 12th century AD, Vizagapatnam was a settlement of a
branch of East India Company in 1682. Rs. 83.00,000 worth
of goods was moved through Vizagapatnam/Bhimunipatnam
in 1882 – 1883.
• Principal commodities traded at anchorage Port included
Muslin cloth - manufacture at Uppada (East Godavari
District), Manganese ore – exports to UK and USA, Oil seeds,
Jiggery, Jute and Indigo, hides and skins. Extensive trade
relations existed with Burma. Vessels of British India Steam
Navigation Company regularly visited the Port.
• With the advent of British Rule, in 1858, the need for a port
in this part of the country was emphasized in a report of a
British Survey Party. Later in 1877 a report called VIZAG –
THE PORT OF CENTRAL PROVINCES further emphasized the
need for construction of a Port at Visakhapatnam. It was only
after the 1st world war (1914 – 1918) that the proposal of
Col.H.Cartwright Reid of British Admiralty for construction of
a harbor at Visakhapatnam at the mouth of river Meghadri
gedda was approved by the Government.

28
• The port was formally inaugurated by the Excellency Lord
Willington, the then Viceroy and Governor General of
India on 19th December 1933. The Saga of the
construction of the harbor particularly forming of
entrance channel, sinking at two old ships “JESUS AND
WELLESDON” to form break waters instead of building a
wall in the sea were all feats in engineering and are
subjects of discussion even today.
• Mr. W C Ash (1928 -1934) and Mr. D B Rattemberry (1934
– 1936) were the engineers also played prominent role in
the construction of this beautiful harbor. The port was
constructed at a cost of Rs.378, 00, 000 and when it was
opened, it considered of 3 berths and handled 1.30 lakhs
tones of traffic.

29
• The Port Administration has passed through different
department and ministries of the Government of India till
its transfer to the Port Trust in February 1964 under the
Major Port Trust Act 1963 as shown below:
• 1926 – 1935 Railway Board
• 1935 – 1937 Commerce Departments
• 1937 – 1942 Communication Departments
• 1942 – 1944 War Transport Departments
• 1944 – 1946 Defiance (War) Departments
• 1946 – 1956 Bengal Nagpur Railways
• 1956 – 1964 Ministry of Transport
• 1964 – Feb. Trust under MPT Act

30
 •PORTS AS INFRASTRUCTURE
• For international trade transportation by sea is that
cheapest. Port is in infrastructure, affording the facilities
import/export of trade/cargo. Thus port is an important
infrastructure for socio-economic development. High value
and more than 90% of import/export, trades pass through
the port. Advent of steam power, Steel Hutt, opening up of
Suez Canal, all have boosted and caused the ever increasing
maritime trade. Indian has 6000 km of, Coastal line and some
160 ports.
• Chennai, Kolkata, Mumbai Marmugao were the oldest ports.
The metro cities became of the port trade. The port of
Visakhapatnam & Cochin came up 1933 & 1936. After
partition of India, in lieu of Karachi, Kandla Port was newly
constructed and commissioned in 1959.
• There is no proposal in 10th plan to create to any new-
major port. The effort is to expand and consolidate the
existing major ports.
• In addition there are about 150 minor ports and few
intermediate ports functioning mainly to take care of coastal
grade. Port – development is a cost intensive project. Unless
interlinked infrastructure of road, railways, besides assured
traffic and water way exists, it may not be viable. That is the
reason many minor ports are non functional. 10th plan
project traffic of 150 Million tons for Minor Ports.

31
• GROWTH:
• The metamorphosis of Visakhapatnam – a sleepy fisherman
village into an Industrial beehive is not a sparkling event that
occurred overnight. This story is intimately connected with
the growth of the VISAKHAPATNAM PORT. Substantial
investments were made during successive plan periods for
the construction of additional berths, modernization of
cargo handling facilities, development of transit sheds,
warehouses, open stacking spaces and developments of
road.
• And rail networks to meet the increasing requirements of
the trade. Thus the port which started with three berths has
now grown into full fledged frontline port among the ports
of India.
• Visakhapatnam Port comprises of two harbours viz. the
Inner Harbour in 100 hectares of water basin and the outer
harbor in 200 hectares of water basin besides, there is a
fishing harbor developed adjacent to outer harbor in 24
hectors of water basin. The outer harbor is encompassed by
three break water viz. North break water (412 Meters),
South break water (1543 Meters) and East break water
(1070 Meters)
• STATISTICS OF VISAKHAPATNAM PORT TRUST
• Annual cargo tonnage ---- 65.30 million tones (2018 - 2019
• Annual revenue ------- Rs. 660 crore (2009 – 2010)

32
• LAND:

• LIST OF CARGO’S:
• BULK CARGO
• Coal
• Iron ore
• Sulphur
• Fertilizers
• All POL’S
• All finished petroleum oils( Naphtha, HSD, Petrol,
Kerosene)
• Gases(LPG)
• Ammonia
33
• PROJECT CARGO
• Project cargo is a term used to broadly describe the
national or international transportation of large, heavy,
high value or a critical (to the project they are intended
for) pieces of equipment. Also commonly referred to as
heavy lift, this includes shipments made of various
components which need disassembly for shipment and
reassembly after delivery.
• Target markets:
• HP
• HPCL
• SR
• MMTC
• MNDC
• COROMANDAL PRIVATE LIMITED
• RAIN C2 INDIA LIMITED
• STEEL AUTHORITY LIMITED
• IOC

34
 •SHIFT SYSTEM IN “VPT”

• OBJECTIVES OF VPT:
• The following are the main objectives of Visakhapatnam Port
Trust:
• The quick turnaround time at ships.
• The fast clearance of cargo’s.
• Coast effective service by exemption of levy on all export
cargo’s.
• For exam part and containers part being developed.
• For regular container feeder services.
• The fastest growing port in the country.
• To evolve a participative style of management resulting in a
safe and healthy working environment increased production
and productivity and goodwill amongst all the employees.
• To strive towards improvement quality of life of employees
and families.
• To secure adequate return on the capital invested and
generated internal resources to finance further development.
• To minimize the pollution of air and enter in the port and
harbor sea.
35
• FACILITIES
•

Shore crane at berth for loading/unloading of containers.

• Tippers for bringing in/out of container from to the berth quickly
from/to the container yard.
• Container yard duly segregated for import/export of container.
• Handling equipment of containers in the yard.
• Computerized facilities of planning the yard to locate the container.
• Container fright stations to aggregate/segregate the containers and
cargo.
• Movements of containers by road/special trains.
•

HARBOUR FACILITATES IN VPT

• The port has 3 harbours,
•

– Inner harbor.
– Outer harbor.
– Fishing harbor.
• INNER HARBOUR:
• The Visakhapatnam INNER HARBOUR consists of entrance
channel of length of 1.62 kms and a turning basin and 3
navigational arms one of which is the North Western Arm
occupied entirely by the Head Quarters of Eastern Naval
Command. The other Arm is Northern Arm which is the main
commercial Arm of the port with 12 berths and 3 moorings.
The Western Arm occupied by the Hindustan Shipyard,
Coromandel Fertilizers and Eastern Naval Command. Two oil
berths are located in this Arm.
•

36
• OUTER HARBOUR:
• OUTER HARBOUR has been commissioned in December 1976.
It has berths for Iron Ore, which can accommodate two ships of
1.50 lakhs DWT. A General cum bulk cargo berth (GSB)
designed to accommodate vessels of 1 lakh DWT was
commissioned on 23rd march 1985. An offshore oil tanker
terminal (OSTT) which can accommodate tankers of size
1,50,000 DWT has the direct discharge facility from the ship to
refinery tankers was commissioned in 1986.
• FISHING HARBOUR:
• The Visakhapatnam FISHING HARBOUR adjacent to outer
harbor was commissioned in 1978 of encloses of tranquil basin
of 24 hectares and can accommodate 56 to 300 mechanized
boats.

• MAIN SOURCES OF REVENUE:

• Ports mainly derive their revenue from cargo handling in their
port areas, charges on the ships visiting their areas and other
related charges.
• MAIN SOURCES OF REVENUE FROM CARGO TRAFFIC:
• Warfare/launching fees cargo related charges.
• Cranes hire charges.
• Rentals from ware houses demurrage charges.
• Charges for providing rail and other transport, for the cargo,
movement and providing water facilitates for the visiting ships.

37
• MAIN RESOURCES OF REVENUE FROM SHIP TRAFFIC:
• Port dues
• Pilot age
• Berth hire
• Survey and measuring fees
• Ship repair in dock areas, charges for water supply.
• DEFICIENCES:
• The deficiencies Indian ports are generally are:
• Ships have to wait for long in the channel for berthing.
• The productivity of unloading are so low that ships
waiting at berth increases quite consideration compared
to international standards
• Ports handling is labor intensive hence susceptible for not
only low productivity but also to the whims of labor.
labor of mechanized handling for bulk cargo
• Desire to change the outmoded system lacking.
• Available equipments are outdated system locking.
• Capital maintenance dredging is not adequate.
• Berthing of ship navigation wait for high tides.

38
 ORGANIZATIONAL STRUCTURE

• Each major port has a Board of Trustee’s representing

various interest connected with the port operations & the
shipping industry. The Chairman of each Major Port Trust
is appointed by Central Government besides; Chairman of
Port Trust Board comprises Deputy Chairman,
Representatives of Customers, Railways, Defence, State
Government, Ship owners, Shippers, labor etc. All
members other than the Chairman & Deputy Chairman
are part time members.

39
• There are 10 departments in Visakhapatnam Port Trust and
those departments are categorized under 2 heads:
• OPERATIONAL DEPARTMENTS:
• Marine departments
• Traffic departments
• Mechanical & Electrical departments
• Civil Engineering Department
• NON – OPERATIONAL DEPARTMENTS:
• General Administration department
• Finance Department
• Medical Department
• Vigilance Department
• FUNCTIONS OF DIFFERENT DEPARTMENTS:
• GENERAL ADMINISTRATION DEPARTMENT:
• It is headed by secretary and is concerned with policy matter,
board matters, legal matters, vigilance matters & co – ordination
and the manager is concerned with personal including industrial
relations welfare, guest house administration, training and
development.
• ACCOUNTS DEPARTMENTS:
• It is headed by finance advisor and chief accounts officer (FA
&CAO) and is considered with financial management and
compilation of presentation of presentations of an accounts,
budgets and other related books.

40
• CIVIL ENGINEERING DEPERTMENT
• It is headed by the chief engineer. It is concerned with plan,
execution & maintenance of civil engineering works &
management of port estate.
• MECHANICAL & ELECTRICAL ENGINEERING DEPARTMENT
• It is headed by the chief mechanical engineer and is
concerned with plan, maintenance and repairs of mechanical,
marine, electrical equipment and maintenance and
operations.
• MARINE DEPARTMENT
• It is under the control of deputy conservator. It is responsible
for safe navigation of vessels and berthing, pilot age,
maintenance of dredging the port, fire service and other
functions of this department.
• TRAFFIC DEPARTMENT
• It is headed by the traffic manager and is concerned with
shipping cargo and real traffic operations, commercial
matters, labor &Development and trade promotions.
• MEDICAL DEPARTMENT
• Chief medical officer is the in charge of medical department.
It provides health, sanitary & medical facilities to the
employees of all departments of Port Trust.

41
• GOVERNMENT POLICY:
• “VISAKHAPATNAM PORT TRUST” is governed by Major Port
Trust Act, 1963. It began its initial operations on 7th October,
1933. We are also governed by Indian Ports Act 1908, Merchant
Shipping Act 1958 and Dock labor conventions of IMO ratified
by India.
• ORGANIZATION STRUCTURE OF VPT:
• VPT is managed by a board of trustees constructed under the
major port trust act 1963. The port trust boards constitute of
chairman, a deputy chairman.
• Trustees appointed by the government in India are shown as
below:
• Chairman
• Deputy Chairman
• Trustee representing the ministry of shipping
• Trustees representing the Indian railway
• Trustee representing the department of customs
• Trustee representing mercantile marine department
• Trustee representing other interests
• Trustee representing the labor unions
• Trustee representing the State Government of AP
• Trustee representing the Naval Officers of AP
• Trustee representing the coast Guard of AP
• Trustee representing Regional Officer, Ministry of Environment,
Chennai.

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• UNIQUE FEATURES
• Island Break – water, constructed by scuttling two old ships JANUS and
WELLESDON which from the Skelton around which a rubble mound is formed.
• It is a natural port endowed with deep water basins formed by a high promontory
into the sea, known as Dolphin’s Nose Hill to the South and Ross Hill to the North
of the entrance channel.
• The only port in India and first of its kind in South Asia to have a Cavern facility for
LPG – a mined rock.
• Cavern at a depth of 200 meters below sea level (Capacity: 60,000 T)
• AWARDS & ACHIEVEMENTs
• It is the only Indian port to have 3 international certifications.
• ISO 9001 – Quality Management System
• ISO 14001 – Environmental Management System
• OHSAS 1800 – Occupational Health and Safety Management System.
• The Dredging to enabler handling 2, 00,000 DWT vessels (18.10 draft)
caps vessels in outer harbor was completed during 2014.
• An ISPS compliant Port
• Complimented by the Ministry of Shipping, Government of India as the
BRIGHTEST JEWEL among all the major ports of India.
• NATIONAL SAFETY AWARD for outstanding performance in industrial
safety
• Winners for the years 2002, 2006, 2007
• Runners – up for the years 1999, 2000, 2001 and 2003
• GREENTECH SAFETY AWARD in service sector for outstanding
achievement in safety management.
• Silver – 2008, 2010
• GREENTECH GOLD AWARD for Environmental Management for the year
2007.
• GREENTECH ENVIRONMENTAL EXCELLENT AWARD
• In service sector for outstanding achievement.
• In Environmental Management Gold – 2007, 2009
• RUNNER UP AWARD for SWATCH PORT for the year 2016 – 2017 among
all the Major Ports.
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• CHAPTER 3
• THEORETICAL FRAMEWORK
• Introduction
• Definition
• History
• Objectives of performance appraisal
• Process of performance appraisal
• Methods of performance appraisal
• Techniques of performance appraisal
• Limitations of performance appraisal

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• INTRODUCTION
• Organizations are run and steered by the people. It is
through people that goals are set and objectives realized.
The performance of an organization is thus dependent
upon the sum total of the performance of its members.
According to Peter Drucker “An organization is like tune; it
is not constituted by individual sounds but by their
synthesis”. The success of an organization will therefore
depend on its ability to measure accurately the
performance of its members and use it objectively to
optimize them as a vital resource.
• The performance of an employee is his resultant behavior
on task which can be observed and evaluated. It refers to
the contribution made by an individual in the
accomplishment of organization objectives. Performance
can be measured by some combination of quality, quantity,
time and cost. People do not earn unless they are given
feedback on the results of their actions. For learning to
take place, feedback must be provided regularly and it
should register both success and failure, and should follow
soon after the relative actions. Performance appraisal
system provides management an opportunity to recall as
well as feedback to people as to how they are doing, so
that they can correct their mistakes and acquire new skills.

45
• Performance refers to all those procedures that are used to
evaluate the personality, the performance, and the potential of its
group members. Evaluation is different from judgment – the
being concerned with the performance, the letter with the
person. While, evaluation deals with achievements of goals,
judgment has an undercurrent of personal attack and is likely to
evoke resistance.
• Performance appraisal can be formal or informal. Informal
performance appraisal is continuous process of feedback
information to the subordinates about how well they are doing
their work in the organization. The informal appraisal is done on
daily bases. For example, the manager spontaneously mentions
that a particular piece of work was well performed or poorly
performed, because of the close connection between the
behavior and the feedback on it, informal appraisal quickly
encourages desirable performance and discourages undesirable
performance before it becomes permanently ingrained.
Therefore, informal appraisal must not be perceived merely as a
casual occurrence but as an important activity, an integral part of
the organizational culture. The formal performance appraisal
occurs usually annually on a formalized basis and involves
appraise and appraiser in finding answers to the following
questions:
• What performance was set out to be achieved during the period?
• Has it been achieved?
• What has been the shortfall and constrains?
• What are we going to do now?
• How will we know that we have done it?
• What kind of feedback can be expected?
• What assistance can be expected to improve performance?
• What rewards and opportunities are likely to follow from the
performance appraisal?
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• Performance appraisal has been used for basically three
purposes – remedial, maintenance and development. A
performance appraisal needs to cover all these three purposes
with the same focus. If any purpose predominates, the system
will become out of balance. For instance, if remedial purpose
is foremost then the performance appraisal may become a
disciplinary tool, a form of charge sheet, a tool of power
instead of instrument of evaluation. If maintenance is the
main objective then the process may become a short, skimped
and per functionary ritual. If there is too much emphasis on
development, then the focus falls on the future assignment
rather than the current job.

• HISTORY
• Although the interest in the use of performance appraisal
has increased over the last 30 years, the practice of
formally evaluating employees has existed for centuries.
The performance appraisal system has undergone a lot of
changes over the years as shown below:
• 1990 : Subjective appraisal
• 1940 : Increased psychometric sophistication
• 1950 : Management by objective (MBO)
• 1960 : BARS
• 1970 – 1990: Hybrid System and Approach

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• OBJECTIVES OF PERFORMANCE
APPRAISAL
• To access the worth of employees in relation to job
requirements.
• To provide a valid data base for personnel decisions
concerning placements, pay, promotion, transfers and
punishments.
• To assess the good and bad points in working of
employees and then making suggestions for
improvement.
• To test the effectiveness of recruitment, selection,
placement and induction programs.
• To evaluate skill and training capabilities of employees
and helping in planning suitable training and
development programs.
• To know the problems faced by employees while
doing various jobs.
• To provide a basis for comparison to segregate
efficient and inefficient employees.
• To help management in fixing employees according to
their capacity, interest, aptitude and qualification.
• To help supervision to know their subordinate more
closely or increase their efficiency.
• To facilitate research in Human Resource
Management.
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 PROCESS OF PERFORMANCE APPRAISAL
• Performance can be undertaken either on informal basis or
formal basis. A systematic performance appraisal process
follow
• ESTABLISHING PERFORMANCE STANDARDS
• The appraisal process begins with the setting up of criteria to
be used for appraising the performance of employees. The
criterion is specified with the help of job analysis, which reveals
the contents of a job. This criteria should be clear, objective
and in writing. It should be discussed with the supervisors to
ensure that all the relevant factors have been included. Where
the output can be measured the criteria is clear. If work
performance cannot be measured, the personal characteristic
which contributes to employee performance must be
determined. These standards should be included on the
appraisal form. Appraisal forms should be carefully de
• Signed and printed. Performance standards will depend upon
the objective of the appraisal.
• COMMUNICATING THE STANDARDS
• The standards set for performance should be communicated to
all the employees. The standards must be explained to the
employees, so that they come to know what expected from
them. In absence of any knowledge of standards, the
employees will keep on guessing only. When the standards are
made known to the above employees, they will try to make
their performance equal or above them.

49
• MEASURING ACTUAL PERFORMANCE
• Once the performance standards are specified and
accepted the next stage is the measurement of actual
performance. This requires choosing the right technique
of measurement, identifying the internal and external
factors influencing performance and collecting
information on results achieved. Personal observation,
written reports and face to face contacts are the means
of collecting date on performance. What is measured is
more important than how it is measured.
• COMPARING THE ACTUAL PERFORMANCE
• Actual performance is compared with the predetermined
performance standards. Such comparison will reveal the
deviations. Deviations may be positive or negative.
Positive deviations occur when the actual performance
exceeds the standards. Negative deviations exceeds
when the actual performance is less than the standards.
• DISCUSSING THE APPRAISAL
• The results of the appraisal are communicated to the
employees. Such discussions enable the employee to
know his weakness and strengths. Therefore, he will be
motivated to improve himself. The impression the
subordinate received about his performance has an
impact on his subsequent performance.

50
 METHODS OF PERFORMANCE APPRAISAL
• With the evaluation and development of appraisal system, a
number of methods have been devised to measure the
quantity and quality of employee’s job performance. These
methods are classified into two broad categories:
•

51
• 360 DEGREE APPRAISAL SYSTEM
• 360 degree appraisal is a recent method which can be used
to appraise the performance of an employee. This method
was first developed and used in a formal way by general
electric company of U.S.A in 1992. This method has
attracted the Reliance Industries, Wipro Corporation,
Infosys Technologies, Thermal, Thomas cook, etc., are using
this method effectively. However, this method could not
gather momentum because of several technical problems.
• TECHNIQUES
• When appraisal is made by superiors, peer, subordinates,
clients, it is called the 360 degree appraisal system of
appraisal. In 360 – degree method, besides assessing
performance, other attributes of the assesse, such as
talent, behavior, value, ethical standards, temper and
loyalty are also appraised. Thus, 360 degree system
involves evaluation of a manager by everyone above,
alongside and below him. The 360 degree appraisal has
form integral components :
• Self appraisal
• Superior’s appraisal
• Peer appraisal
• Subordinate’s appraisal

52
• Grading Method:
• In this method, certain categories of worth are established in
advance and carefully defined. There can be three categories
established for employees: outstanding, satisfactory and
unsatisfactory. There can be more than three grades.
Employee performance is compared with grade definitions.
The employee is, then, allocated to the grade that best
describes his or her performance.
• Such type of grading is done is Semester pattern of
examinations and in the selection of a candidate in the public
service sector. One of the major drawbacks of this method is
that the rater may rate most of the employees on the higher
side of their performance.
• Forced Distribution Method:
• This method was evolved by Tiffen to eliminate the central
tendency of rating most of the employees at a higher end of
the scale. The method assumes that employees’ performance
level confirms to a normal statistical distribution i.e.,
10,20,40,20 and 10 per cent. This is useful for rating a large
number of employees’ job performance and promo ability. It
tends to eliminate or reduce bias.
• It is also highly simple to understand and easy to apply in
appraising the performance of employees in organisations. It
suffer from the drawback that improve similarly, no single
grade would rise in a ratings.
• Forced-Choice Method:
• The forced-choice method is developed by J. P. Guilford. It
contains a series of groups of statements, and rater rates
how effectively a statement describes each individual being
evaluated. Common method of forced-choice method
contains two statements, both positive and negative.
53
• Check-List Method:
• The basic purpose of utilizing check-list method is to ease the
evaluation burden upon the rater. In this method, a series of
statements, i.e., questions with their answers in ‘yes’ or ‘no’ are
prepared by the HR department (see Figure 28-2). The check-
list is, then, presented to the rater to tick appropriate answers
relevant to the appraisee. Each question carries a weight-age in
relationship to their importance.
• When the check-list is completed, it is sent to the HR
department to prepare the final scores for all appraises based
on all questions. While preparing questions an attempt is made
to determine the degree of consistency of the rater by asking
the same question twice but in a different manner .

54
• LIMITATIONS OF PERFORMANCE APPRAISAL
• Errors in rating
• HALO effect or error
• Constant error
• Personal bias
• Spillover effect
• Lack of reliability
• Incompetence
• Negative approach
• Lack of knowledge
• Status effect
• Resistance.

55
 ERRORS OF PERFORMANCE APPRAISAL
• No Baseline:
• It's impossible to fairly assess an employee's performance
without a baseline of what can reasonably be expected. Make
use of the employee's job description and stated goals during
the review. Be careful not to compare the employee to other
workers with different job roles. Assess the employee in light
of the job, not the work of others in different positions.
• Overemphasis on Attitude:
• Agreeable, friendly employees who get along well with others
are an asset to any business. Still, many good workers are less
winsome and enthusiastic. If an employee's attitude or lack of
social skills is creating tension in the workplace, address it,
but don't risk losing a competent worker just because the
employee isn't a cheerleader or everybody's friend.
• Influence of Halo Effect Bias:
• Halo effect is a particular bias that can skew your assessments
to be more positive than they ought to be. With the halo
effect, the employee has a particular characteristic or area of
performance that you find particularly appealing, which
affects the way you perceive every aspect of the worker's
performance.
• For example, if you have an employee who is an excellent
researcher who develops reports that contain accurate and
timely information, you may be inclined to look more
favorably on the employee's performance in other areas,
even though the facts show that the skill sets in these other
areas are not as strong.

56
• Single Deficiency Focus:
• Over focusing on a deficiency is the opposite of the halo
effect. Some employees may struggle in one particular area,
even though their performance of other tasks is good or even
excellent. Don't overlook behaviors or skills that need
improvement but don't let your frustration cause you to
ignore or minimize everything that the employee does
correctly.
• Ignoring the Entire Timeline:
• Performance reviews typically focus on a specific period,
usually the past year. Unfortunately, some managers tend to
focus on the most recent weeks and months, ignoring
performance throughout the year. Another mistake is to
overfocus on a single situation or project rather than to
examine the employee's entire performance record.
• Unawareness of Negative Biases:
• Everyone has biases, and many of these can be unconscious.
Employers and managers need to keep biases in check when
completing performance reviews. Typically, biases develop
based on race, gender, sexual orientation, religion, or aspects
of the employee's appearance.
• Before offering a review that can have a serious impact on an
employee's career trajectory, the person providing a review
should engage in self-reflection to examine any possible
biases. Would the same report be given to an employee who
has different personal characteristics than the employee
under consideration?
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 CHAPTER-4

• FINDINGS
• SUGGESTIONS
• CONCLUSION
• QUESTIONNAIRE

58
 FINDINGS
• It was observed that 97% of employees in VTP are feeling that they have
good skills to work in the VTP compared to the standard of organization.
• From table no.4.2 were came to know that many of the respondents
said that appraisal is done by HOD of the concern department, which
was correct.
• Majority of respondents from table number 4. 3 said that annual
confidential report method is used appraisal technique.
• It was observed a mixed opinion in table no.4.4 about why appraisal is
done some of the respondents felt it is for promotion and salary, and
some felt it for training and development.
• From the table no.4.5 we can say that there is 9.8% of awareness among
the employees about the about the performance appraisal.
• It was found from the table no.4.6 that 100% of the respondents feel
that techniques for appraisal are good.
• Majority of respondents from table no.4.7 said that 82% of the
respondents feel that there is very important significance for appraisal
in VPT.
• It was found from table no.4.8, 4.9 that success at work should be
parameter and criteria for appraisal.
• It was found from the table no.4.10 that 62% of respondents feel that
merit should not be seen during appraisal.
• From the table no.4.11, 46% of the respondents say that experience
should be given less importance.
• It is found from the table no.4.12 that 94% of the respondents say
effective at task is important.
• It was found from the table no.4.13 that 87% of the respondents have
an inactive role in appraisal.
• It was found from the table 4.14 and 97% of the employees say that
appraisal evaluate and develops the employee.
• It was found from the table no.4.15 that 86% of the employees say that
superiors are strict at work.
59
• It was found from the table no.4.16 that that 85% of
respondents agree that appraisal is based on potential at job
and scope for development.
• It was found from the table no.4.17 that emphasis is laid on
individual performance rather than all department
performance.
• It was found that the table no.4.18 that level of difficulty of
trait is high during appraisal.
• It was found from the table no. 4.19 that there is no
contradiction between reporting officer and reviewing
officer.
• It was found that from the table no.4.20 that 82% of
respondents say that outstanding performance is rewarded
properly.

60
QUESTIONNAIRE FOR A STUDY
ON PERFORMANCE APPRAISAL
Respected Sir/madam, As a part of my project I
would like to gather some information from you which will
help me in an in depth study of project. Since the
questionnaire is being used for academic purpose, the
information gathered will be strictly confidential. Kindly fill
the following: (Please put a tick mark in the appropriate box)
1)Is there a formal system for evaluation of performance
management practices of the organization?
a)Yes
b)No
2)What is the objective of performance appraisal?
a)Promotion b)assessing training needs
c)Pay rise d)others
3) Does any conflict arise with employer after the appraisal
is made?
a)Frequently b)sometimes
c)Often
4) Who rates the performance?
a)Superiors b)Subordinates
c)Clients d) All

61
5) Are there any job expectations establishment before
performance appraisal?
a)Frequently b)Often
c)Sometimes d) Never.
6) Senior management communicates well with the rest of the
organization
a) Agree
b) Neutral
c) disagree
d) Unable to rate
7) People with different ideas are valued in this organization
a) Agree
b) Neutral
c) disagree
d) Unable to rate
8) Is 360° appraisal process undertaken in your organization?
a) Yes
b)No
9) Does any change arise after appraising the performance of
employees?
a) Yes
b)No

62
10) Are you satisfied with the appraisal process of your
organization?
a) fully satisfied
b) Moderately satisfied
11) Do you feel performance appraisal process is sufficient
in appraising the performances of employees or you
need some alternatives to it?
a) Sufficient
b) Alternative
12) Do you receive any increment in your salary after
performance Appraisal.
a. Yes
b. No
13) Do you think that performance Appraisal help to
provide an atmosphere where all are encouraged to
share one another burden.
a. Yes
b. No
14) Do you think performance appraisal give constructive
criticism in a friendly and positive manner.
a. Yes
b. No
15) Is the top level management partial in Performance
Appraisal
a. Yes
b. No
63
 DECLARATION

I hereby solemnly declare that this project entitled

“A STUDY ON PERFORMANCE APPRAISAL” AT
“VISAKHAPATNAM PORT TRUST” has been prepared by
me during the period of 4 weeks from 29-04-2019 to 27-
05-2019 under the guidance of Sri. Ajay Krishna.
This project is the result of my own work and has not
been submitted to any other institute or university
earlier.

Place: Visakhapatnam Signature of candidate

Date: Name: B. Lakshmi Eepsitha
Regd. No: 2017-1809094

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