Gas Authority of India Limited-Original####

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Chapter-1 1.1 A PROFILE Gass Auth Ga Authori ority ty of Ind India ia Limi Limite ted d (GAIL) is one of the outstanding  public sector enterprises (PSEs) in the country today. It is one of the ‘a!aratna" enterprises and ran#s among the top ten companies in Indi India. a. $u $uri ring ng %& %&&& &&' ' * * th thee com compa pany ny regi regist stere ered d a turno turno!e !err of +s.,-.% billion /ith net profits of +s.,.0% billion. Gas transmission and distribution forms the bul# of GAIL"s business today follo/ed by gas processing for LPG production and production of petrochemicals. 1he company operates o!er - 23 of pipelines in all four regions of the country supplying about 0 million cubic meters (33S43) of gas  per day as fuel to po/er plants for generation of o!er -35 of  po/er* as feedstoc# for gas based fertili6er plants to produce about % %  331PA of urea* and to o!er % other industrial units to meet their energy and process re7uirements. Gas throughput during %&&&' /as to the tune of 0.8 33S43$ as against 8.8 33S43$ of the  preceding year. GAIL /as established by Go!ernment of India in August %&,- for handling post'e9ploration acti!ities relating to atural Gas* /ith the 1

 

ob:ecti!e of accelerating and optimi6ing the effecti!e and economic use of atural Gas and its fractions to the benefit of national economy. 5ithin a period if %0 years* GAIL has emerged and maintained its  position as the o.% Gas 4ompany in India. It has /on the E9cellent Performance A/ard for the past fi!e years consecuti!ely* and safety a/ards from the ;il Industry Safety $irectorate (;IS$) and <ritish Safe Sa fety ty 4o 4oun unci cil. l. It ha hass an IS IS; ; & &  4e 4ert rtif ific icat atio ion n fo forr its its pipe pipeli line ne systems* LPG plants and the Gas 1echnology Institute and also IS; %- %% % 4e 4ert rtif ific icat atio ion n fo forr it itss LPG LPG plan plants ts at =i =i:a :aip ipur ur** =a =agh ghod odia ia** 4ompressor Stations at >a6ira and along the ><? Pipeline* ma#ing it amongst the first Indian 4ompanies in the Petroleum sector to secure this certification. In line /ith its status as a a!aratna 4ompany* GAIL has identified se!eral areas for e9pansion and di!ersification to ensure continuous gro/th in the future. 1.2 NATURAL GAS MARKETING

 atural Gas constitutes the core business of GAIL. Gas throughput during %&&&' %&&&' /as to the tune of 0.8 33S43$. 33S43$. ;f this* GAIL today supplies about @@ 33S43$ (million cubic meters per day) of gas consumers /hich are ser!iced by the ><? and its spur pipelines and about 8 33S43$ to customers /hich are ser!iced through its not >P? net/or#s. 1he demand for natural gas for outstrips a!ailability today. uture pro:ections indicate some increase in the 2G (2rishna' Goda!ari) basin and the 4au!ery basin in the south. GAIL is already augmenting its transmission infrastructure in these areas to facilitate 2

 

the the co cons nsum umers ers in th thes esee regi region ons. s. GA GAIL IL is also also /o /or# r#in ing g in se se!e !era rall directions li#e gas imports* LG and E9ploration and Production to increase the a!ailability of gas. 1.3 TELECOM

GAIL has recently entered the 1elecom sector as a ser!ice pro!ider for the

basic

operat rators. rs.

It has

alrea ready

signe gned

memor oraandum

of

unde un derst rstan andi ding ngss (3 (3;B ;Bs) s) fo forr th thee :o :oin intt opera operati tion onss /i /ith th Po Po/e /err Grid Grid 4orpo 4o rporat ratio ion n of In Indi diaa Lt Ltd. d. 5i 5ith th th this is** the the co comb mbin ined ed e9 e9is isti ting ng an and d  proposed net/or#s of the t/o companies /ould be the largest oper op erat ati! i!ee lo long ng di dist stan ance ce ne net/ t/or or# # in the the co coun untr try y afte afterr $o $o1. 1. 1he 1he a!ailability of such integrated net/or# /ould enable basic* cellular* Internet Ser!ice pro!iders and long distance operators to establish and comme com mence nce ope operat ration ionss at the earli earliest est and at the same tim timee pro pro!id !idee higher degree of reliability to their operation. It has already signed 3;Bs /ith four ma:or 1elecom operators for leas leasin ing g ba band nd/i /idt dth h ca capa paci city ty.. 1h 1hes esee are are <h <har arti ti 1e 1ele leso soni nics cs** <PL <PL  broadband* Shyam 1elecom and Escotel 3obiles. 3obiles. GAIL has planned to set up a orth'5est'South broadband cross' country net/or# of o!er & #m in phases. 1he net/or# /ill pro!ide high band/idth (- G<PS) capacity across %% states of the country connecting more than & cities including three metros and four mini metr me tros os.. 1h 1hee net/ net/or# or# /oul /ould d pr pro! o!id idee en end' d'to to'en 'end d ca capa paci city ty to bo both th operators and end users and /ould enable connecti!ity to all ma:or international gate/ays* both satellite and fibre. GAIL also plans as part

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of its net/or# to set up capacity hubsCband/idth capacity e9changes. 1his /ould entail an in!estment of about +s.% crore. As part of the first phase* GAIL /ould connect more than @ ma:or cities in orth and 5estern part of the country. 1hese /ould include citi ci ties es in 3a 3aha haras rasht htra* ra* Gu Gu:a :arat rat** +a +a:a :ast stha han* n* >a >ary ryan ana* a* $elh $elhi* i* Bt Btta tarr Pradesh and 3adhya Pradesh. 1he second phase /ould co!er more than 8 cities spread o!er eight states in the orth'5est region. At the end of this phase* GAILs net/or# /ould be spread o!er 0 #m.* /ould connect three metros and four mini'metros and /ould pro!ide connecti!ity to &8 cities in the country. 1.4 JOINT VENTURES MAHANAGAR GAS LIMITED (MGL) A :oint !enture /ith <ritish

gass an ga and d Go Go!t !t.. of 3a 3aha haras rasht htra ra /a /ass inco incorpo rporat rated ed to su supp pply ly ga gass to domestic* commercial and small industrial consumers in 3umbai and 4G for transport sector. INDRAPRASTHA GAS LIMITED (IGL). A :oint !enture 4ompany

/ith <P /ith <P4L 4L an and d Go Go!t !t.. of $e $elh lhii /a /ass inco incorp rpor orat ated ed in %& %&&, &, fo forr the the distribution of natural gas to the domestic* commercial and transport sector in $elhi. PETRONET LNG LIMITED (PLL).   A :oint !enture /ith ;G4*

<P4L and /as I;4 incorporated for the import of LG in the country.

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1.5 FINANCIAL OPEARTIONS

GAIL GA IL has has be been en a co cons nsis iste tent ntly ly go good od pe perf rfor orm mer an and d is ho hope pefu full of maintaining its current performance trends. It has an authori6ed share capital of +s.% billion of /hich +s.,.-0 billion has been paid up. 08.@  percent of the shares of the company are o/ned by Go!ernment of India. $uring %&&&'* the company paid a di!idend of @ percent. GAIL has achie!ed a turno!er of +s.,-% crore in %&&&' and a net  profit of +s.,0% crore. Gross operation 3argin has increased to +s.%08 crore as compared to +s.%-& crore of %&&,'&&. GAIL"ss engine GAIL" engineers ers ha!e achie achie!ed !ed up to %@D capacity capacity utili6at utili6ation ion at its LPG plant and ha!e o!ercome ma:or challenges in pipeline /or#. 1hey ha!e also maintained &&.&D pipeline a!ailability. GAIL"s tight pro:ect controll and moni contro monitorin toring g systems systems ha!e enabled it to maintai maintain n its pro:ect costs schedule and its financial systems ha!e enabled it to generate internal resources from its initial stage of operations.

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1.5 HUMAN RESOURCE AND MANAGEMENT At GAIL* >uman +esources 3anagement and $e!elopment is a core functional and thrust area. $uring the last % years GAIL has e!ol!ed a set set of co comp mpreh rehens ensi! i!ee >u >uma man n +e +eso sour urce cess Poli Polici cies es** Pra Pract ctic ices es an and d Systems. 1.5.1 Hum! R"#$u%&" M'##'$!

1he >uman +esource 3ission of GAIL is to create a resourceful en!ironment that shall be conduci!e to the sustainable gro/th of the organi6 orga ni6ati ation on through through syn synergi ergisti sticc de! de!elo elopme pment nt of >um >uman an +es +esour ources ces and 1ec 1echno hnolog logy y /it /ith h emp emphasi hasiss on ind indi!i i!idua duall e9cell e9cellenc encee and sel self' f' de!elopment. 1.5.2 HR R"#"%&

1he 4ompany also undert underta#es a#es studies from tim timee to time (internall (internally y as /ell /e ll as /i /ith th th thee he help lp of e9 e9te tern rnal al e9 e9pe pert rts) s) on is issu sues es rela relati ting ng to empl em ploy oyee ee sati satisf sfac acti tion on** 7u 7ual alit ity y of /o /or# r# life life** inte intern rnal al cu cust stom omer er satisfaction etc. 1.5.3 S$&'* O+*',-'$!#

GAIL has been committed to the cause of upliftment and de!elopment of the bac#/ard and underpri!ileged sections of the society. GAIL is firm in its belief that 4orporates ha!e a ma:or responsibility in the area of human /elfare specially in de!eloping countries li#e India and the therefore theref ore the 4ompany support supportss se!era se!erall Go!ern Go!ernment ment sponsored social /elfar /el faree and hum humani anitar tarian ian pro program grammes mes.. 1he pro program gramme mess are in the 6

 

nature of infrastructural facilities* electrification and street lighting* dr drin in#i #ing ng /a /ate ter* r* he heal alth th an and d sani sanita tati tion on** comm communi unity ty de de!e !elo lopm pmen ent* t* =ocational training etc. 1.5.4 T%'!'!, ! D"/"*$0m"!-

GAIL lays considerable stress on employee 1raining and $e!elopment acti!ities and these are coordinated by a separate department under the $irectorate of Personnel. 1he 1raining efforts are need focussed and co!e co !err in'ho in'hous usee tr trai aini ning ng pr prog ogram ramme mess sp sprea read d o!er o!er a /i /ide de range range of sub:ec sub :ects ts as als also o e9t e9terna ernall tra traini ining ng inc includ luding ing spe specia ciali6 li6ed ed program programmes mes abroad. 5ith the ob:ecti!e of building up of its o/n in'house infrastructure* GAIL has set up a Gas 1echnology Institute (G1I) /ith collaboration of $anish Go!ernment at ;I$A (B.P). G1I functions are the 4orporate >+$ and Synergy $epartment of GAIL /ith mission to pro!ide pro!ide sustai sustainable nable gro/th opportunit opportunities ies to the gas sector through synergistic de!elopment of human resource and technology.

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GAILS VISION  Be the Dominant Natural Gas Company with Significant Global Presence, Integrate in !nergy an Petrochemicals"

1. Am0*''&-'$! $ GAIL# V'#'$! E*"m"!-#  Dominant 

<e the undisputed leader in the natural gas mar#et in India by gro/ing aggressi!ely to bridge the demand'supply gap and meet the needs of e9isting and potential customers.  Natural Gas Company

ocu o cuss on all all aspe aspect ctss of th thee na nattur ural al ga gass !al !alue ch chai ain n inc nclu ludi ding ng e9pl e9 plor orat atio ion* n*

pr prod oduc ucti tion on**

tr tran ansm smis issi sion on**

e9tr e9trac acti tion on**

pr proc oces essi sing ng**

distribution and mar#eting of natural gas related processes* products and ser!ices.  Significant Global Presence Presence

4reate 4re ate and str streng engthe then n meanin meaningfu gfull regional regional and glo global bal pre presen sence ce to  pursue strategic* attracti!e opportunities /hile effecti!ely managing  business ris#s.  Integrate in !nergy an Petrochemicals Petrochemicals

E9pand beyond the tradi traditional tional natural natural gas business by integ integrating rating into additional hydrocarbon based sources and end uses to pro!ide superior !alue to customers through con!ergence of products and ser!ices.

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1. C$%" O%,!'-'$!* V*u"# E-'&#

1hey are transparent* fair and consistent in dealing /ith all people. 1hey 1h ey insi insist st on hone honest sty* y* in inte tegri grity ty an and d trus trust/ t/or orth thin ines esss in all all thei theirr acti!ities. P"$0*"

1hey 1h ey be beli lie! e!ee th that at th thei eirr su succ ccess ess is dri dri!e !en n by the the co comm mmit itme ment nt an and d e9cell e9c ellenc encee of their their peo people ple.. 1he 1hey y att attrac ractt and reta retain in res result ult'or 'orien iented ted  people /ho are proud o off their /or# and ar aree satisfied nothing less than the the !e !ery ry be best st in e!er e!eryt ythi hing ng th they ey do do.. 1hey 1hey en enco cour urag agee indi indi!i !idu dual al initiati!e by creating opportunities for their people to learn and gro/. 1hey respect the indi!idual rights and dignity of all people. Cu#-$m"%

1hey stri!e relentlessly to e9ceed the e9pectations of their customers*  both internal and e9ternal. 1heir customers customers prefer them. S%"$*"%#

1hey 1he y me meet et the ob:ect ob:ecti!e i!ess of the their ir sha shareho reholde lders rs by pro!id pro!iding ing the them m superior returns and !alue through their in!estment in GAIL. T"&!$*$,6

1hey 1h ey be beli lie! e!ee tech techno nolo logy gy is a #e #ey y to the the fu futu ture re su succ cces esss of thei theirr organi6ation. 1hey ad!ocate use of ‘best'in'class" technologies.

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Chapter-# REVIE7 OF LITERATUE 2.1 7- '# P"%$%m!&" A00%'#*8

Performance Appraisal is a system for achie!ing organi6ational goals throug thr ough h the re!ie/ re!ie/ of emp employ loyee ee perf perform ormanc ancee aga agains instt indi!i indi!idual dual or group ob:ecti!es. In a pe perf rform orman ance ce ap appr prai aisa sall sy syst stem em ob ob:e :ect cti! i!es es are are de! de!el elop oped ed fo forr ind ndi! i!id idua ualls or gr grou oups ps.. 1h 1hes esee ob ob::ec ecti ti!e !ess are are deri deri!e !ed d fr from om the the organi6ations goals. ;n a regu regula larr ba basi sis* s* us usua uall lly y an annu nual ally ly or ha half lf ye year arly ly** em empl ploy oyee ee  performance is re!ie/ed against their ob:ecti!es. 1his occurs for t/o reasons.. irst reasons irstly ly to determ determine ine areas /hich need de!elopmen de!elopmentt or further learning. Secondly to re/ard employees for ob:ecti!es they ha!e met and for areas /here their performance is good. In si simp mple le term termss pe perf rform orman ance ce ap appr prai aisa sall ma may y be unde underst rstoo ood d as the the measurement of an indi!idual"s performance in a systematic /ay* the  performance being measured against such factors as :ob #no/ledge* 7uality and 7uantity output* initiati!e* leadership abilities* super!ision* dependabili depend ability* ty* co'ope co'operation ration** :udgm :udgment* ent* !ersatilit !ersatility* y* health health and the li#e. Asse As sess ssm men entt sh shou ould ld be co conf nfin ined ed to the the pa past st pe perf rfor orm man ance ce alon alone. e. Potentials of an employee for the future must also be assessed.

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A formal definition of performance appraisal is Fit is the systematic e!aluation of the indi!idual /ith respect to his or her performance on the :ob and his or her potential for de!elopment. A more comprehensi!e definition isH FPerformance Appraisal is a formal* structured system of measuring and e!aluating an employees :ob* related beha!iors and outcomes to disco!er ho/ and /hy the employee is presently performing on the :ob and ho/ the employee can perform more effecti!ely in the future so that the employee* organi6ation* and society all benefit. 1he sec second ond def defini initio tion n includ includes es emp employ loyees ees"" beha!i beha!ior or as par partt of the assessment. <eha!ior can be acti!e or passi!e  $o something or do nothing. Either /ay* beha!ior affects :ob results. 1he other terms used for for

pe perf rfor orma manc ncee

ap appr prai aisa sall

areH ar eH

pe perf rfor orma manc ncee

rati rating ng**

empl employ oyee ee

asse as sessm ssment ent** em empl ploy oyee ee pe perfo rform rman ance ce re!i re!ie/ e/** pers person onnel nel ap appra prais isal al**  performance e!aluation* employee e!aluation and merit rating (perhaps the oldest of the terms used).

2.2 O+9"&-'/"# $ 0"%$%m!&" 00%'#*

$ata relating to performance assessment of employees are recorded* stored and used for se!eral purposes. 1he main purposes of employee assessment areH %.

1o effe effect ct p pro rom mot otio ions ns ba base sed do on n ccom ompe pete tenc ncee an and dp per erfo form rman ance ce..

.

1o con confi firm rm tthe he se ser! r!ic ices es o off pro proba bati tion onar ary y em empl ploy oyee eess upon upon ther theree completing the probationary periods satisfactorily.

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@.

1o asse assess ss tthe he tr trai aini ning ng an and dd de! e!el elop opme ment nt ne need edss o off eem mploy ployee ees. s.

-.

1o de deci cide de u upo pon n a pay pay rais raisee / /he here re ((as as in the the u uno norg rgan ani6 i6ed ed ssec ecto tor) r) /here regular pay scales ha!e not been fi9ed.

.

1o let let the the em empl ploy oyee eess #no/ #no/ /h /her eree tthe hey y ssta tand nd and and sso o far far as ther theree  performance is concerned and to assist them /ith constructi!e criticism and guidance for the purpose of there de!elopment.

0.

1o iim mpr pro! o!ee com commu muni nica cati tion on.. Perf Perfor orm man ance ce A App ppra rais isal al p pro ro!i !ide dess a formal dialogue bet/een the superior and the subordinate* and impro!es understanding of personal goals and concerns. 1his can also ha!e the effect of increasing the trust bet/een the appraiser and the appraisee.

8.

i ina nall lly* y* p per erfo form rman ance ce aapp ppra rais isal al ccan an b bee used used to to de dete term rmin inee /h /het ethe herr >+ programmes such* as selection* training and transfers ha!e  been effecti!e or not.

2.3 A00%'#* P%$&"##

1he abo!e figure outlines the performance appraisal process. Each step in the process is crucial and arranged logically. 1he process as sho/n in the abo!e figure is some /hat ideali6ed. 3any organi6ations ma#e e!ery effort to appro9imate the ideal process* resulting in first'rate appraisal systems. Bnfortunately* many others fail to consider one or more of the steps and* therefore* ha!e less' effecti!e appraisal systems.

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T" P"%$%m!&" A00%'#* P%$&"##.

O+9"&-'/"#A00%'#* $ -" P"%$%m!&"

E#-+*'# J$+ E;0"&--'$!# E;0"&--'$!#

D"#',! ! A00%'#* P%$,%mm"

A00%'#" P"%$%m!&"

P"%$%m!&" I!-"%/'"<

U#" A00%'#* D- $% A00%$0%'-" Pu%0$#"#

2.4 O:JECTIVES OF APPRAISAL

;b:ecti!es of apprai ;b:ecti!es appraisal sal inclu include de effect effecting ing promotions promotions and trans transfers* fers* assessing training needs a/arding pay increases* and the hi#e. 1he emphasis in all these is to correct the problems. 1hese ob:ecti!es are appropriate as long as the approach in appraisal is indi!idual. Apprai App raisal sal** in fut future ure** /ou /ould ld ass assume ume sys system temss ori orient entati ation. on. In the systems approach* the ob:ecti!es of appraisal stretch beyond the traditional ones.

In the systems approach* appraisal aims impro!ing the performance* instead of merely assessing it. 1o/ards this end* appraisal system 15

 

see#s to e!aluate opportunity factors. ;pportunity factors include the physical en!ironment such as noise* !entilation and lightings a!ailable resource such as human and computer assistance. In the the sy syst stem emss ap appr proa oach ch** th thee em emph phas asis is is no nott on indi indi!i !idu dual al assessment and re/ards or punishments. <ut it is on ho/ the /or# syste sys tem m af affe fects cts an in indi di!i !idu dual al"s "s pe perfo rform rman ance. ce. In or orde derr to us usee a systems approach* managers must learn to appreciate the impact that the system le!el factors ha!e on indi!idual performance* and subo su bord rdin inat ates es mu must st ad ad:u :ust st to th thee lac# lac# of co com mpe peti titi tion on amon among g indi!iduals. 1hus* systems approach is going to be successful* the employee must belie!e that by /or#ing to/ards shared goals* e!eryone /ill  benefit. 2.5 ESTA:LISH JO: E=PECTATIONS

1hee seco 1h second nd step step in th thee ap appr prai aisa sall pr proc oces esss is to es esta tabl blis ish h :ob :ob e9pe e9 pect ctat atio ions ns.. 1h 1his is in incl clud udes es in info form rmin ing g the the em empl ploy oyee ee /hat /hat is e9pected of himC her on the :ob. ormally* a discussion is held /ith hisC her superior to re!ie/ the ma:or duties contained in the :ob description. Indi!iduals should not be e9pected to begin the :ob until they understand /hat is e9pected of them.

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2.> DESIGN THE APPRAISAL PROGRAMME

$esigning an appraisal programme poses se!eral 7uestions* /hich need ans/ers. 1hey are* (i) ormal !ersus informal appraisalJ(ii) 5hose performance performance is to be assessedK (iii (iii)) 5ho are the ratersK (i!) 5hat should be ratedK F$%m* V"%#u# I!$%m* A00%'#*?  1he first step in designing an

appraisal programme is to decide /hether the appraisal should be formal or informal. ormal appraisals occur usually at specified time periods' once or t/ice a year. ormal appraisals are most often re7uired by the organi6ation for the purpose of employee e!aluation. Informal  performance appraisal can occur /hene!er the super!isor feels the need for communication. or e9ample* if the employee has been consistently meeting or e9ecuting standards* an informal appraisal may be in order to simp simply ly recogni6e this fact. $iscuss $iscussions ions can ta#e  place any/here in the organi6ation* ranging from the manager"s office to the canteen. <ut care needs to be ta#en in to ensure that the discussion is held in pri!ate. 3any 3a ny or orga gani ni6a 6ati tion onss en enco coura urage ge a mi9t mi9tur uree of bo both th fo form rmal al an and d informal appraisals. 1he formal appraisal is most often used as a  primary e!aluation. >o/e!er* the informal appr appraisal aisal is !ery helpful for more performance feedbac#. Informal appraisals should not ta#e the place of formal performance e!aluation.

7$#"" 0" 7$# 0"% %$%m $%m! !&" &" #$u #$u* * +" % %-" -"? ? 1o the 7uestion as to /hos /h osee pe perf rfor orma manc ncee sh shou ould ld be rate rated* d* the the an ans/ s/er er is ob ob!i !iou ous' s' 17

 

employees. 5hen /e say employees* is it indi!iduals or teamsK Spec Sp ecif ific ical ally ly** th thee rat ratee ee ma may y be de defi fine ned d as the the indi indi!i !idu dual al** /o /or# r# group* di!ision or organi6ation. It is also possible to define the ratee at multiple le!els. or e9ample* under some conditions it may be desirable appraise performance both at the /or#'group le!el for merit pay increases and at the indi!idual le!el to assess training needs. 1/o 1/ o co cond ndit itio ions ns ne nece cess ssit itat ates es a gr grou oup' p'le le!e !ell ap appr prai aisa sal' l' gr grou oup p cohesi!eness and difficult in identifying indi!idual performance. Group cohesi!eness refers to the shared feeling among /or# team membe embers rs.. 1he here re is co coop oper erat atiion and and clea clearr unde unders rsttan andi ding ng to accomplish tas#s* /hich are interdependent. Any attempt to assess indi!idual indi! idual performan performance ce shall undermin underminee group cohesi!eness cohesi!eness and tend to promote indi!idualistic or e!en competiti!e orientation. 1he difficulty in identifying indi!idual contribution is also important to consider. In some cases* interdependence of tas# is so complete that it is difficult to identify /ho has contributed /hat. 1here is no other choice but to !ie/ the tas# as a team effort. <ut the point to be remembered is that the performance of all employees must be rated. All must become ratees. 7$ %" R-"%#8 ?

+ate +a ters rs ca can n be im imme medi diat atee su supe per!i r!iso sors rs**

spec sp ecia iallist ists

>+

fr from om

the

de depa part rtm men ent* t*

su subo bord rdin inat ates es**

peer peers* s*

committees* clients* self'appraisals* or a combination of se!eral. Imm Im med edia iate te su supe per! r!iisor sor is th thee fit fit cand candid idat atee to ap appr prai aise se the the  performance of hisC her subordinates. 1here are three reasons in support of this choice. o one is more familiar /ith subordinates 18

 

 performance than hisC her superior. Another reason is that the superior superi or has the respons responsibili ibility ty of manag managing ing a particular particular unit. 5hen the tas# of e!aluating a subordinate is gi!en to another person*the superior superi or author authority ity may be undermined undermined serious seriously.i ly.inally nally** train training ing and de!elopment of subordinates is an important element in e!ery manager"s :ob. Since appraisal programmes are often clearly lin#ed to training and de!elopment* the immediate super!isor may be the logical choice to conduct the performance e!aluation. Subordinates Subordi nates can assess the performance performance of their superiors.1he superiors.1he use of this choice may be useful in assessing an employee"s ability to commu com muni nica cate te** de dele lega gate te /o /or#* r#* allo alloca cate te res resou ourc rces es** diss dissem emin inat atee info inform rmat atio ion* n*

reso resol! l!ee

in intr tra' a'pe pers rson onal al

co conf nfli lict ct**

an and d

de deal al

/i /ith th

empl em ploy oyee eess on a fair fair ba basi sis. s. <u <utt the the pr prob oble lem m /i /ith th su subo bord rdin inat atee e!aluation is that the super!iosrs tend to become more popular* not  by effecti!e leadership* but by mere gimmic#s. gimmic#s. Peer Pe erss are are in a be bett tter er po posi siti tion on to e! e!al alua uate te ce cert rtai ain n fact factss of :ob :ob  performance /hich the subordinates or super!isors cannot do. Such facts includ facts includee con contri tribut bution ion to /or# /or# group group pro:ect pro:ects* s* interp interperso ersonal nal effect eff ecti!e i!eness ness** com commun munica icatio tion n s#i s#ills lls** reliab reliabili ility ty and initi initiati ati!e. !e. urther* /hen re/ard allocation is based on peer e!aluation* serious conflicts among co'/or#ers may de!elop. inally* all the peers may  :oin together to rate each other high. Although clients are seldom used for rating employee performance* nothing pre!ents an organisation from using this source. 4lients may be members /ithin the organisation /ho ha!e direct contact

19

 

/ith the ratee and ma#e use of an output(goods or ser!ice)this employee pro!ides.

5here ap 5here appra prais isal al is made made by su supe peri riors ors** peers peers** su subo bordi rdina nate tess an and d clients* it is called the @0  degree system of appraisal. irst de!eloped at General Electric BS in %&&* the system has become  popular in our country too. G<(India)* +eliance Industries* 4rompto 4rom pton n Gre Grea!e a!es* s* God Godre: re: Soa Soaps* ps*5ip 5ipro* ro*Inf Infosys osys*1h *1herm erma9 a9 and 1hom 1h omas as 4o 4oo# o# are are us usin ing g th thee meth method od /ith /ith gr grea eate terr be bene nefi fits ts.. 1h 1hee Arth Ar thur ur An Ande ders rson on Su Sur! r!ey ey(%& (%&&8 &8)) re!e re!eal alss that that  pe perr ce cent nt of the the orga organi nisa sati tion onss us usee th thee @0 @0' 'de degr gree ee me meth thod od.. In the the @0 @0' 'de degr gree ee meth me thod od*b *bes eside idess asse assess ssin ing g pe perfo rform rman ance ce** othe otherr attr attrib ibut utes es of the the assesse ass esseee  tal talent ents* s* beh beha!i a!iour oural al 7ui 7uir#s* r#s* !al !alues ues*et *ethic hical al sta standa ndards* rds* tempers tempe rs and loyal loyalty ty are e!alua e!aluated ted by people /ho are best placed to do it. 7- #$u* +" R-"8?  ;ne of the steps in designing an appraisal

 programme is to determine the e!aluation criteria.It is ob!ious that the criteria should be related to the :ob.1he si9 criteria for assessing  performance areH 1. Quality 1he degree to /hich the process or result of carrying out

an acti!ity approaches perfection in terms of either conforming to some ideal /ay of performing the acti!ity* or fulfilling the acti!ity"s intended purpose. 2. Qua Quanti ntity ty 1he amount produced* e9pressed in monetary terms*

number of units* or number of completed acti!ity cycles.

20

 

3. Tim Timeli elines nesss 1he degree to /hich an acti!ity is completed or a

resu result lt pro rodu duce ced* d* at th thee ea earl rlie iest st tim imee de desi sira rabl blee fr from om the standpoints stand points of both co'ordinatin co'ordinating g /ith the outputs of others and of ma9imising the time a!ailable for other acti!ities. 4. Cost ost ef efffec ecti tive vene ness ss 1he degree to /hich the use of the

organisation"s resources(e.g.human*monetary*technological and material) is ma9imised in the sense of getting the highest gain or reduction in loss from each unit or instance of use of a resource.  Need for supervision 1he degree to /hich a :ob performer can carry out a :ob fun functi ction on /ithou /ithoutt eit either her ha! ha!ing ing to re7 re7ues uestt sup super! er!iso isory ry assi as sist stanc ancee or re7 re7ui uiri ring ng su supe per!i r!iso sory ry inte inter! r!en enti tion on to pr pre!e e!ent nt an ad!erse outcome.

21

 

Chapter-$ O:JECTIVES OF THE STUD@ 1he follo/ing are the main and specific ob:ecti!es of the study. M'! O+9"&-'/"

1o St Stud udy y th thee Effe Effect cti! i!en enes esss of the the e9 e9is isti ting ng Perf Perfor orm man ance ce Appraisal System of GAIL. S0"&''& O+9"&-'/"#

%. 1o fi find ndou outt th thee Pro Probl blem ems* s* di diff ffic icul ulti ties es and and sh short ortco comi ming ngss of the the e9isting system. . 1o asce ascertain rtain /h /hether ether th thee e9ist e9isting ing syst system em ta#e ta#ess care of the 1 1raini raining ng and $e!elopment needs of the e9ecuti!es.

SCOPE OF THE STUD@ 1he scope of this study is pertained to the $elhi based offices of GAIL /hich comprises of GAIL corporate office* Gas 1echnology Institute located in oida and their +egional office at oida. 1he study focuses on the e9ecuti!es Perception of their performance Appraisal System. 1hee st 1h stud udy y fo focu cuse sess on !a !ario rious us fact factors ors that that e9e e9ecu cuti ti!e !ess loo# loo# fo forr an effecti!e Performance Appraisal System.

22

 

Chapter-% METHODOLOG@ 1he cha chapte pterr des describ cribes es the res researc earch h proc procedu edure re i.e i.e.. o!eral o!eralll res researc earch h design* sampling procedues* data collection method and the procedure follo/ed for analysis. 4.1 RESEARCH DESIGN

+esearch in common parlance refers to a search for #no/ledge. 1he  purpose of research is to disco!er ans/ers to 7uestions through the application of scientific procedure. 1he main aim of research is to findout the truth /hich is hidden and /hich has not been disco!ered as yet. ye t. 1h 1his is st stud udy y /a /ass un unde dert rta# a#en en to test test a hypo hypoth thes esis is of a caus causal al relationship bet/een !ariables. 4.2 PRO:LEM IDENTIFICATION

1his step in!ol!ed initial problem identification* literature sur!ey and scheduling of the pro:ect. 1he problem /as identified by an elaborate discussion /ith Senior >+ $epartment 3anagers /or#ing in the GAIL 4orporate ;ffice. 1his 1h is pro: pro:ec ectt ma main inly ly deal dealss /i /ith th th thee effe effect cti! i!en enes esss of the the e9 e9is isti ting ng  performance appraisal system in GAIL.

23

 

4.3 DATA COLLECTION

1he tas# of data collection begins after a research problem has been defined and research design C plan chal#edout.1he tabulated data is then analysed by using the percentage techni7ue and 5eighted a!erage method. 1his stage in!ol!ed collection of primary data . 1he primary data are those /hich are collected for the first time* and thus happen to be original in character. 1he acti!ities under this stage in!ol!edH uestionnaire Preparation Structured Inter!ie/ Getting the uestionnaires filled by the e9ecuti!es from E'% to E'&. 4.4 ANAL@SING THE PERFORMANCE

+ecording the findings and suggestions. ualitati!e Analysis of the Primary data. Interpretation of the Primary data. 4.5 CENTRES TARGETED

%. Gas Aut Authorit hority y of Ind India ia Lim Limited ited ( 4orpor 4orporate ate ;ff ;ffice) ice) %0* <hi#a:i 4ama Place  e/ $elhi'%%00 . Gas A Auth uthori ority ty of Ind India ia L Lim imite ited d Sector %* Gautam <uddha agar   oida @. Gas 1ec 1echnol hnology ogy Institu Institute te  oida 24

 

4.> RESPONDANTS

E9ecuti!e from le!el E'% to E'& /or#ing in the 4entres 1argeted. 4. SAMPLING TECHNIBUE

Stratified +andom Sampling If a population from /hich a sample is to be dra/n does not constitute a homogeneous group* stratified sampling techni7ue is used in order to obta ob tain in

a

repr repres esen enta tati ti!e !e

samp sample le.B .Bnd nder er

stra strati tifi fied ed

sa samp mpli ling ng

the the

 population /as di!ided into se!eral sub populations that are indi!idually more homogeneous than the total population and then selected the items from each stratum to constitute a sample. Since each stratum /as more homogeneous than the total population* /e are able to dra/ mo more re preci precise se esti estimat mates es for each strat stratum um and by est estim imati ating ng more accurately each of the parts* /e get a better estimate of the /hole. 1he follo/ing are the reasons for choosing stratified random sampling methodH %. 1h 1hee rese resear arch cher er /ant /anted ed to get get resp respon onse se fr from om diff differ eren entt pe peop ople le in!ol!ed in the performance appraisal process such as +eporting officer* +e!ie/ing officer* Accepting officer and the Appraisee. . <y thi thiss me meth thod od /e are are ab able le to co co!er !er peo peopl plee /o /or#i r#ing ng in diff differ eren entt disciplines as /ell as different le!els in the organisation. 4. COMMUNICATE FINDINGS

+ecommendations 1o Gas Authority of India Limited. 1he pro:ect /ould end /ith the submission of a consolidated report on the entire pro:ect. 25

 

METHODOLOG@

START

 

P%$+*"m I"!-''&-'$! I"!-''&-'$!

L'-"%-u%" R"/'"<

P%"0%-'$! $ Bu"#-'$!!'%"

L'#-'!, O -" E;"&u-'/"# E;"&u-'/"# <$%'!, <'- GAIL O'&"#.

D- C$**"&-'$!

F'!'!,# ! O+#"%/-'$!# O+#"%/-'$!#

A!*6#'#

STOP I!-"%0%"--'$! ! R"&$mm"!-'$!#

R"0$%- 7%'-'!,

26

 

Chapter-& AN INTRODUCTION TO THE GAIL# S@STEM T" E;'#-'!, P"%$%m!&" A00%'#* S6#-"m - GAIL

1he Performance Appraisal System in GAIL has been designed to e!alua e!a luate te emp employe loyeee perf perform ormanc ancee /it /ith h a !ie/ !ie/ to enh enhanc ancee ind indi!i i!idua duall cont co ntri ribu buttio ion* n* gr grea eate terr

:o :ob b

resp respon onsi sibi billity ity

an and d

bu buil ild d

an o! o!er eral alll

achie!ement oriented organisational culture. 5.1

O:JECTIVES

1he ob:ecti!es of the performance system at GAIL areH .%. .%.% % 1o set set no norm rmss an and d targ target etss of /or# /or# perf perfor orm man ance ce as /ell /ell as monitor the /or# progress of employees. .%. .% . 1o faci facilit litate ate plac placeme ement nt of em emplo ployees yees in accord accordanc ancee /ith thei theirr suitability for different types of assignments. .%. .%.@ @ 1o pr pro! o!id idee an ob ob:e :ect cti! i!ee ba basi siss fo forr dete determ rmin inat atio ion n of me meri rit* t* efficiency and suitabili suitability ty for purposes of promotion. .%.- 1o identify areas re7uiring e9posure for 1raining C $e!elopment. .%. 1o plan the career groth of employees.

27

 

5.2 EVALUATION

1he performance appraisal see#s to e!aluateH ..% 1he /or# performance of an employee on the present :ob in relation to the e9pected le!els of performance* both 7ualitati!e and 7uantitati!e. .. 1he e9tent of de!elo de!elopment pment achie! achie!ed ed by the employee employee during the  period under re!ie/. ..@ E!aluation of beha!ioural attributes* attitudes and abilities. ..- E!aluation of potetinal for assuming higher responsibilities. 5.3 COVERAGE

1he Appraisal shall co!er H .@.% .@ .% Per Perform formanc ancee during th thee finan financia ciall year i.e for % month monthss period from %st April to @%st 3arch.. .@. .@ . All rregu egular lar em emplo ployee yeess of the com compan pany. y. 1here shall ho/e!er be three different formats for H Employees in the on'e9ecuti!e cadres. E9ecuti!es upto the le!el of Sr. $y. 3anager. E9ecuti!es of the le!el of 3anager and abo!e. .@.@ .@ .@ 1he App Apprai raisal sal for form m /il /illl ha!e to be fill filled ed in respect respect of all suc such h employees /ho ha!e ser!ed for a period of atleast @ monthsin the organi6ation during the rele!ant year. 28

 

5.4 PROCEDURE

.-.%

Annual 4onfi 4onfidentia dentiall + +eport eport (A4+ (A4+)) in respect respect of an employee employee is re7uired to be assessedC /ritten by three higher le!elsH

.-. <y the + +eporti eporting ng ;ffi ;fficer cer under / /hom hom the empl employee oyee is /o /or#ing r#ing .-.@ <y th thee +e! +e!ie/in ie/ingC gC 4 4ounter ounter signi signing ng ;f ;fficer ficer and .-...- <y tthe he A Acce ccepti pting ng A Auth uthorut oruty. y. 5.5 5.5 A. A.C. C.R# R# FO FOR R E= E=EC ECUT UTIV IVES ES

..% 1he +ep +eporting orting ;ffic ;fficer er /ill be the ;f ;fficer ficer to / /hom hom th thee empl employee oyee repo report rtss for hi hiss da day' y'tto' o'da day y /o /or# r#.. +e!i +e!ie/ e/ of the Ann nnua uall 4onfidential +eports /ill be done by the E9ecuti!e to /hom the report rep orting ing ;ffice ;fficerr is respon responsib sible le for his functi functions. ons. Accept Accepting ing Auth Au thor orit ity y /i /ill ll be th thee E9 E9ec ecut uti! i!ee high higher er than than the the +e +e!i !i/i /ing ng ;fficer. .. ollo ollo/ing /ing ttime ime sch schedule edule sh shall all be fo follo/ llo/ed ed for the co compl mpletion etion of Annual 4onfidential +eport for E9ecuti!esH .. ..@ @ <l <lan an# # fo form rmss /i /ill ll be sent sent by th thee Pers Person onne nell $epa $epartm rtmen entt to the concerned >ead of the $epartmentC <ranch by %th 3arch . ... .- or orms ms to be gi! gi!en en by >ea >ead d of the $epa $epartm rtment ent to th thee conce concerne rned d E9ecuti!e for self appraisal by th 3arch. .. ..  4om ompl plet etio ion n of Sel Self Ap Appr prai aisa sall by co conc ncer erne ned d of offficer icer an and d submission to +eporting ;fficer by %th April.

29

 

..0 . .0 +ep +eport orting ing ;fficer ;fficer /ill com comple plete te his ass assess essmen mentt and subm submit it to the +e!i/ingC 4ountersigning officer by th April.

..8 +e!ie +e!ie/ingC /ingC 4ounte 4ountersigni rsigning ng ;fficer ;fficer /ill count countersign ersign tthe he Annua Annuall 4onfidential +eportC PA /ith or /ithout his remar#s and send to Accepting Authority by @th April. .. .., , An Annu nual al 4o 4onf nfid iden enti tial al +e +epo port rtss to be retu return rned ed to Pe Pers rson onne nell $epartment of +egionC 4orporate ;ffice after persualC remar#s of the Accepting Authority by %th 3ay. ..& . .& Per Person sonnel nel $epa $epartm rtment ent of +egio +egional nal ;ffi ;ffice ce /ill send the Annu Annual al 4onfidential +eports of all E9ecuti!es to 4orporate ;ffice by th 3ay. ..% 1he follo/ing is also re7uired to be done in respect of the Annual 4onfidential +eportsC PA in respect ofE9ecuti!esH ..%%Annual 4onfidential +eports CPerformance Appraisals in respect of E9ecuti!es in the le!els of E'@ and E'- /ill be submitted to the General 3anagerand the $irector concerned /here!er such authority is not the +e!i/ing C Accepting Authority. ..%1he +eports in respect of E9ecuti!es in the le!el of E' /ill be subm su bmiitt tted ed to conc concer erne ned d $irect rector or /he here re!e !err he is not not the the +e!ie/ing C Accepting Authority. ..%@1he +eports in respect of E9ecuti!es in the le!el of E'0 and abo!e /ill be put up to the 43$.

30

 

5.> ADVE ADVERSE RSE REPO REPORT RT  REMA REMARKS RKS

.0.% .0 .% In the e!en e!entt of the o!e o!eral ralll asses assessme sment nt bein being g not satis satisfac factory tory or carrying some ad!erse remar#s* a communication /ill need to  be issued to the concerned employee after the report has been accepted by the concerned authority. .0. .0.  1he ad ad!e !ers rsee rem remar ar#s #s /ill ill be con! con!ey eyed ed to the co conc ncer erne ned d employee by the Personnel $epartmentand this acti!ity shall be completed by @th ?une. .0.@ An em employee ployee /ho m may ay not be aggrei aggrei!ed !ed by the ad!erse ad!erse rem remar#s ar#s in the A4+C Performance Appraisal as communicated to him and /ho desires to prefer an appeal against the same /ill be re7uired to follo/ the follo/ing procedureH .0. .0.- An em empl ploy oyee ee ag aggr grei ei!e !ed d by ad ad!e !ers rsee rem remar ar#s #s may may ma# a#ee an appeal /ithin & days of the days of communiction. .0. .0.  1h 1hee ap appe peal al ma made de by th thee em empl ploy oyee ee shal shalll co cont ntai ain n br brie iefl fly y his his contention conte ntion along /ith docum documentary entary e!idence* e!idence* if any* in support of teh same and shall be routed routed through proper channel. channel. A copy of the ap appe peal al mad adee may be su subm bmit itte ted d to the Pe Pers rson onne nell $epartment. .0.0 0.0 1he +eporting C 4ontro rollling ;fficer

shall for/a r/ard the

appe ap peal alal alon ong g /ith /ith hi hiss rem remar ar#s #s to the the +e +e!i !i/i /ing ng CA CAcc ccep epti ting ng ;fficer /ho in turn may gi!e his comments on the repre represe sent ntat atio ion n ma made de an and d fo for/ r/ard ard the the sa same me to the the Ap Appe pell llet etee Authority /ithin one month of its receipt. 31

 

.0.8 .0 .8 1he deci decisio sion n of the App Appell ellete ete Authori Authority ty /ill be communi communicat cated ed to the emplo employee yee con concern cerned ed thr throug ough h prop proper er channe channell /it /ithin hin a  period of three months of the date of receipt of the appeal. CLARIFICATION

or the purpose of these +ules an ad!erse remar# /ould mean a remar# /hich indicates the defects or defeciencies in the 7uality of /or# or performance or conduct of an employee but does not include any /ords in the nature of counsel or ad!ice to the employee. Also* a!erage reports are not treated as ad!erse. urther* in case of doubt /hether a particular remar# recorded in the confidential report of an employee is an ad!erse remar# or not* the same /ill be referred to the concerned $irector for decision. .0., .0 ., 1he App Appell ellate ate Authori Authority ty /ill norma normally lly be an offic officer er one ran# abo!e the Accepting ;fficer. In cases /here the 43$ is the Accepting ;fficer* the Appellate Authority shall also be the 43$. 5. GENERAL

3asculine gender also refers to feminine gender.

32

 

Chapter-'  O:SERVATION ollo/ ol lo/ing ing are the im import portant ant obs obser! er!ati ations ons** /hich /hich the res reserch ercher er had studied during the training period at Gas Authority of India Limited. 

1otal number of e9ecuti!es /or#ing in the GAIL 4orporate office is %%.



 umber of e9ecuti!es ta#en at +andom for the purpose of filling of the ustionnaires is 0.



 umber of responses recei!ed from the 4orporate office is .



 umber of e9ecuti!es /or#ing in the GAIL*oida GAIL*oida office &-.



 umber of e9ecuti!es ta#en at +andom for the purpose of filling of the ustionnaires at GAIL* oida office is @.



 umber of responses recei!ed is %.

33

 

Chapter-(  ANAL@SIS %) 1h 1her eree is a ne need ed fo foee E9 E9ec ecut uti! i!ee Pe Perfo rform rman ance ce Ap Appr prai aisa sall sys syste tem* m* in your companyK   rom

the abo!e finding* /e are able to dra/ a conclusion that the

E9ecuti!es feel there is a strong need for E9ecuti!e Performance Appraisal. And there are e9ecuti!es /ho feel that there is no need for E9ecuti!e performance appraisal. V%'!-#

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34

 

) E9ecut E9ecuti!es i!es are sati satisfied sfied /i /ith th the presen presentt E9ecuti E9ecuti!e !e Perform Performance ance Appraisal systemK  E9ecuti!es

are 7uite satisfied /ith the Performance Appraisal. <ut

li#e in many organi6ations there are people /ho are not satisfied for the e9isting Performance Appraisal System. V%'!-#

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35

 

@) 1he E9ecu E9ecuti!e ti!e Pe Performa rformance nce Appraisal Appraisal is a re/ar re/ard d mechan mechanism ism and aimed at de!elopment of e9ecuti!es.  

E9ecuti!es ha!e feeling that it is a source of re/ard mechanism and

has a !ery strong lin#age /ith the de!elopmental acti!ities. V%'!-#

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36

 

-) 1he 1here re is a nee need d to li lin# n# the apprais appraisal al system system /it /ith h the sala salary ry re!ie re!ie/ / system to ma#e it more ob:ecti!e and de!elopment orientedK   +espondents

feel that salary re!ie/ system is an inbuilt part of

Performance Appraisal system and it cannot be separated. V%'!-#

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)

EP EPA A is lin lin#e #ed d /i /ith th the the pr prom omot otio iona nall po poli licy cy and car carri ries es hig highe herr /eight age at the time of promotion. 37

 

 

E9ec E9 ecut uti! i!es es feel feel th that at th ther eree is a stro strong ng lin# lin# bet/ bet/ee een n the the

E9ecut E9e cuti!e i!e perform performanc ancee app apprai raisal sal and promoti promotiona onall pol polici icies es as most of the time the results are lin#ed to each other. V%'!-#

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0) 1he self self'apprais 'appraisal al part in tthe he e9ist e9isting ing perf performanc ormancee appraisa appraisall form  pro!ides ade7uate opportunity to the e9ecuti!es to assess hisC her  performance.

38

 

  1h 1hee e9 e9ec ecut uti! i!es es feel feel th that at self self ap appr prai aisa sall pa part rt e9 e9is isti ting ng in the the  performance appraisal form pro!ides sufficient opportunity to the e9ecuti!es to assess hisC her performance. V%'!-#

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39

 

8)

o on'a n'ass ssig igni ning ng of rati rating ng in th thee se self lf appe appeai aisa sall pa part rt affe affect ctss the the effecti!eness of the e9ecuti!e performance appraisal.

 E9ecuti!es agree to the fact that non ssigning of rating effects the effecti!eness of the Performance Appraisal System. V%'!-#

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40

 

,) E! E!er ery y e9ec e9ecut uti! i!ee sh shou ould ld be gi!en gi!en an oppo opport rtuni unity ty to rate hi hisC sC her o/n performance performance and such rati rating ng should carry some /eightage /eightage in the entire Performance Appraisal systemK  1he E9ecuti!es are of the opinion that e!eryone should be gi!en an opportunity to rate hisC her o/n performance and such rating should carry some /eightage in the entire EPA system. In the absencee of any /eigt absenc /eigthtage htage the there re is no point in reta retaining ining the sa same me in the Performance Appraisal System. V%'!-#

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41

 

&) 1h 1hee Pe Perfo rform rman ance ce Appr Apprai aisa sall Sys Syste tem m he help lpss the the e9ec e9ecut uti! i!ee to fin find d their strengths M /ea#nesses relating to their performance and faci facili lita tate tess in im impr pro! o!in ing g su suff ffic icie ient nt oppo opport rtun unit itie iess fo forr fu furth rther er de!elopment.  1he e9ecuti!es feel that since the entire performance appraisal system is sub:ecti!e in nature *its !ery difficult to find out the strengths M /ea#nesses as most of the Superiors misuse them and fa!ouritism ta#es place. >ence* by ma#ing the affair a routine  procedure. V%'!-#

+esponses(D)

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42

 

%) 1as 1as#sC #sC 1arge 1argets ts indic indicati ating ng the 2ey Perfo Performa rmance nce Areas are set for each e9ecuti!e by hisC her +eporting officer in consultation /ith the former at the beginning of the year.  D of the E9ecuti!es don"t agree to the fact that certain targets are set for them in the beginning of the year. 1herefore* they feel that target setting is not re7uiredC possible in the company in the  present scenario. V%'!-#

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43

 

%%) Peri Periodi odicc re! re!ie/ ie/ss of tas tas#C #C target targetss ass assign igned ed are done done at reason reasonabl ablee inte inter! r!al alss by th thee +e +epo port rtin ing g of offi fice cerr in or orde derr to as asce cert rtai ain n the the achie!ements and constraints faced by the appraisee.  E9ecuti!es feel that there is no need to re!ie/ the targetsC tas#s assi as sign gned ed as /h /hen en th thee targe targets ts are not se sett pr prope operl rly y there there is no 7uestion of re!ie/ing the same. Although there are employees /ho say that indi!idual targets are not set but group targets are set* and the re!ie/s are ta#en on time by their +eporting ;fficers. V%'!-#

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44

 

%) +eport +eporting ing offic officer er during such re!ie/ m meetin eeting g tries to remo!e the constraints faced by the appraisee and suggests impro!isation in carrying out the tas#.  E9ecuti!es do not #no/ that such meetings form a part of the appraisal system* as they don"t ta#e place . 1hus* by ma#ing the system /ea#. V%'!-#

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45

 

%@) 1he E9ecut E9ecuti!es i!es are gi!en suf sufficie ficient nt opportun opportunitie itiess to e9press their feeling feeli ng /ith regard to the constraints constraints that sheC he has faced during the assessment year.  1he general response is positi!e in some cases as /e can see that @0D employees agree to this* but there is a ma:ority /ho feels that that no su such ch op oppo port rtun unit itie iess are gi!e gi!en n to e9 e9pre press ss the the indi indi!i !idu dual al constraints faced during the year. V%'!-#

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46

 

%-) 1he suggest suggestions ions gi!en by the emp employees loyees are in!a in!ariably riably considere considered d and /here!er C to /hate!er e9tent possible* implemented by the management.  E9ecuti!es mostly do not agree to the fact that their suggestions are are e! e!er er im impl plem emen ente ted d by th thee ma mana nage gem men ent. t. <u <utt am amon ong g the the E9ecut E9e cuti!e i!ess /ho agr agree ee to this* this* fee feell tha thatt alt althoug hough h the compa company ny re/ re/ar ards ds su suit itab ably ly bu butt they hey pe pers rson onal allly ha ha!e !e no nott gi!e !en n any any suggestions to comment on this. V%'!-#

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47

 

%)) 1h % 1hee su sugg gges esti tion ons* s* /h /hic ich h are are im impl plem ement ented ed in the the co comp mpan any* y* ar aree re/arded suitably.  D of the e9ecuti!es agree to this as *it is mentioned in the company policy and precedure that any employee /ho gi!es any !aluable suggestion shall be re/arded suitably. V%'!-#

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48

 

%0) 1he E9is E9istin ting g EPA syst system em pro!i pro!ides des that the +eport +eporting ing offi officer cer is in!ariably the immediate super!isor.  1he e9ecut e9ecuti!es i!es mostl mostly y agree to this as their their report reporting ing officer is the immediate super!isor in most of the cases. V%'!-#

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(D)

49

 

%8)) 1h %8 1hee pr pro! o!is isio ion n fo forr ge gett ttin ing g feed feedba bac# c# on the the is issu suee as /h /het ethe herr e9ecuti!e has submitted hisC her return of mo!ableC immo!able  property and E9ecuti!e record updating form ha!e no rele!ance in the E9isting Performance Appraisal System.  E9ecuti!ess agree to this as these things don"t form a part of the  E9ecuti!e appraisal system . <ut some e9ecuti!es feel that this is a good opportunity gi!en to the people /ho ha!e not filed their returns on time. Since* these things don"t form a part of the EPA system they should be remo!ed. V%'!-#

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50

 

%,)) 1h %, 1hee assi assign gnme ment ntss gi gi!e !en n to th e9ec e9ecut uti! i!es es best best matc match h /i /ith th thei theirr educational bac#ground* aspirations M :ob satisfaction.  -%D employees agree as they are gi!en assignments #eeping in mind the abo!e factors. V%'!-#

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51

 

%&) 1he E9ecut E9ecuti!es i!es feel that th their eir apprais appraisals als general generally ly matc match h /ith their indi!idual ob:ecti!es.   1he 1he em empl ploy oyee eess ar aree no nott sati satisf sfie ied d /ith /ith the the fact fact that that thei theirr appraisals match /ith their indi!idual ob:ecti!es as they are not made a/are of their ratings and hence by ma#ing the process closed. V%'!-#

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50.00% 45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% Strongly Agree

Str ongly Disagree

No Response

52

 

)) 1h  1hee pro pro!i !isi sion on fo forr ge gett ttin ing g th thee feed feedba bac# c# fro from m the the ap appr prai aise seee in respect of the assignments alloted to himC her is /ell ta#en into consideration by the appraiser.  rom the abo!e abo!e findings findings /e can see that that there -,D e9ec e9ecuti!e uti!ess /ho are not satisfied /ith the feedbac# ta#en by their super!isors. V%'!-#

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50.00% 45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% Strongly Agree

Agre e

Di sa g grre e

S trongl y Disagree

No Response

53

 

%)) 1h % 1hee fact factors ors C pa param ramet eters ers** ag agai ains nstt /h /hic ich h the the pe perfo rform rman ance ce of an e9ecuti!e is being assessed* are sufficient.  1he E9ecuti!es feel that tthe he factorsC parameters e9isting under the the sy syst stem em ag agai ains nstt /h /hic ich h th thee pe perf rform orman ance ce of an e9ec e9ecut uti! i!ee is assessed are not sufficient. 3ost of the rrespondents espondents are of opini opinion on thatt there are cer tha certai tain n factors factors /hic /hich h suit only only to the 1echn 1echnica icall e9ecuti!es( e9ecut i!es( Engine Engineers) ers) and not to the non techni technical cal e9ecut e9ecuti!es i!es li#e inance* 3ar#eting anmd >+ E9ecuti!es. V%'!-#

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54

 

). 1he pro!is pro!ision ion for pro!i pro!iding ding /rite'up in support of ‘;utstandi ‘;utstanding" ng" or ‘belo/ satisfactory" satisfactory" by the + +eporting eporting ;fficer is sufficient. Alth Al thou ough gh su suit itab able le op oppo port rtun unit ity y is gi!e gi!en n to the the As Asse sess ssors ors but but e9ecuti!es feel that these opportunities are not used to their best  possible e9tents. V%'!-#

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55

 

@) 1he assessment of integrit integrity y by the reporting officer is ade7uate for arri!ing at a conclusion. -D of the e9ecuti!es agree to this as it is sufficient for the >+ $epartment to arri!e at any #ind of conclusion about an e9ecuti!e. 1he conflict arises /hene!er the ratings bet/een the +e!ie/ing officer* +eporting officer and Accepting officer differs. V%'!-#

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56

 

-). ). 1h 1hee ad ad!er !erse se rem remar# ar#ss rece recei! i!ed ed in resp respec ectt of an any y ap appra prais isee ee is commun com munica icated ted and his sub submi missi ssionC onCrepr represe esenta ntatio tion n is als also o ta#en ta#en int into o consideration

by

the

Appellate

Authority

before

the

e9pungingCupholding such ad!erse remar#s. V%'!-#

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57

 

). 1he opinion of subordinates should also be ta#en into account at the time of performance re!ie/.  1he e9ecuti!es mostly mostly agree to it. <ut presently since the system is not fully open* it is !ery difficult to say that to /hat e9tent they are ready to ta#e the feedbac#. V%'!-#

+esponses (D)

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58

 

%. 1he appr appraisal aisal p process rocess p pro!ide ro!idess M ma# ma#es es easy to identfy identfy the tr trainin aining g needs of each M e!ery e9ecuti!e. 1he respondents agree to the fact that appraisal ma#es it easy to identify training needs. <ut the e9ecuti!es also feel that the training needs identified through appraisals ne!er turn into realities. V%'!-#

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(D)

59

 

. 1h 1hee trai raini ning ng pro rogr gram amss (i (ide dent ntif ifie ied d thr hrou ough gh the perf perfor orm mance ance appraisal system) th:at are underta#en generally match /ith the e9ecuti!es functionalCpersonal de!elopment plans. -D of the respondents feel that the training programs do not match /ith /hat has been mentioned by them in their appraisal forms. At the same time there are another 8D respondents /ho feel that the training  programs are underta#en. V%'!-#

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60

 

@. In the the ap appr prai aisa sall !e !ery ry li litt ttle le /e /eig ight htag agee is gi!e gi!e on de de!e !elo lopm pmen entt aspects and more /eightage on promotionalCcompensation aspects. +espondents agree to the fact that !ery little /eightage is gi!en to  promotionalC compensational aspects. V%'!-#

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61

 

-. 1he Perf Perform ormance ance Appra Appraisa isall System System ta ta#es #es iinto nto aacco ccount unt tthe he car career eer de!elopment of e9ecuties and indi!idual performance related pay. -8D of respondents feel that the Performance Appraisals are not oriented to/ards their career de!elopments. <ut on the other hand* there are &D respondents /ho feel that it is de!elopment oriented. V%'!-#

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62

 

.

1h 1hee e9 e9ec ecut uti! i!es es rec recog ogni ni6e 6e th that at pe perf rform orman ance ce Ap Appr prai aisa sall /i /ill ll be effecti!e only /hen the appraiser recei!es the correct feedbac#.  1he e9ecuti!es feel that the appraisal /ill be effecti!e only /hen

the appraiser recei!es the correct feedbac# about the appraisee. V%'!-#

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(D)

63

 

0. 1h 1hee syste system m pro pro!i !ide dess

a sco scope pe fo forr emp emplo loye yeee cou couns nsel elli ling ng by th thee

accepting office to impro!e their performance. D  D of th thee resp respon onde dent ntss feel feel th that at there there is sc scope ope fo forr empl employ oyee ee counselling to moti!ate the e9ecuti!es for better performance. V%'!-#

S-%$!,*6 A,%""

A,%""

D'#,%""

S-%$!,*6 D'#,%""

N$ R"#0$!#"

+esponses

-.D

D

@%.,D

-.D

-.D

(D)

64

 

8. E9 E9ec ecut uti! i!es esCC Ap Appra prais isee ee co cons nsid ider er th that at co coun unse sell llin ing g is an im impo port rtan antt toolCinstrument to bring out confidence among them.  1he response sho/s that e9ecuti!esC appraisees see counselling as an important toolC instrument. V%'!-#

S-%$!,*6 A,%""

A,%""

D'#,%""

S-%$!,*6 D'#,%""

N$ R"#0$!#"

+esponses

@%.,D

.8D

%@.0D

il

.D

(D)

65

 

,. 1he e9is e9istin ting g E9e E9ecut cuti!e i!e Perf Perform ormanc ancee apprai appraisal sal pro! pro!ide idess scope scope for team ob:ecti!e. E9e 9ecu cuti ti!e !ess feel feel tha hatt ind ndi! i!iidual dual pe perf rfor orm man ance ce is gi!e gi!en n mor oree importance and as a result* team ob:ecti!es are losing their importance in the organisation. V%'!-#

S-%$!,*6 A,%""

A,%""

D'#,%""

S-%$!,*6 D'#,%""

N$ R"#0$!#"

+esponses

0.,%D

@%.,D

-@.%D

%0D

.8D

(D)

66

 

&. E!e E!ery ry appr apprais aisee should should be made a/a a/are re of hisC hisCher her o/n ra ratin tings gs at the end of Performance Appraisal. Although mentioned in the manual* the e9ecuti!es are not made a/are of their ratings. V%'!-#

S-%$!,*6

A,%""

D'#,%""

A,%""

+esponses

-.D

%,.&D

.-D

S-%$!,*6

N$

D'#,%""

R"#0$!#"

.D

-.D

(D)

67

 

%.In your opinion* /hat should be the periodicity of performance re!ie/K  D of the respondents feel that the periodicity of appraisals should  be one year* @0D feel that the periodicity should be t/ice a year* 8D feel that it should be four times in a year. V%'!-#

+esponses (D)

O!&" '! 

T<'&" '! 

F$u% -'m"#

6"%

6"%

'!  6"%

-.D

@0.@D

0.,D

O-"%#

.D

68

 

%%.$o you feel that e9isting performance appraisal system does not fulfill the re7uirement of organi6ation in the present scenarioK 1hee e9 1h e9ec ecut uti! i!es es ag agree ree to th thee fact fact that that the the e9 e9is isti ting ng pe perf rform orman ance ce appraisal does not fulfill the re7uirements of the organisation in the  present scenario. V%'!-#

@"#

N$

N$ R"#0$!#"

+esponses

0%.@D

8.D

%%.@D

(D)

69

 

%.@0'$e %.@0 '$egre greee app apprai raisal sal sys system tem in nec necessa essary ry for e9e e9ecut cuti!e i!ess in the  present scenario.  1hough most of the respondents agreed to this uestion. <ut the 7uestion that arises arises in e!eryone"s mind mind is that F5ill the employees be ready to ta#e inputs from their peers* subordinates* internal M e9ternal customersK V%'!-#

+esponses (D)

@"#

N$

N$ R"#0$!#"

0%.@D

8.D

%%.@D

70

 

%@.$o you thin# potential appraisal system should not be a part of Appraisal system but a separate oneK E9ec E9 ecut uti! i!es es feel feel th that at th ther eree is no ne need ed to se sepa para rate te the the po pote tent ntia iall appraisal system in the p present resent scenario V%'!-#

S"0%-"

S"0%-" !$-

N$ R"#0$!#"

R"u'%"

+esponses (D)

@%.,D

.8D

%.&D

60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Se pa ra te

Se pa ra te not Required

No Response

71

 

FINDINGS At the the en end d of th thee stud study y * /e ar aree ab able le to dr dra/ a/ cert certai ain n tent tentat ati! i!ee conclusions. 1hey are as follo/s. %)

E9e E9ecut cuti!e i!e Apprai Appraisal sal is see seen n as a !al !aluab uable le sour source ce of auth authent entic ic dataCinput dataC input about an e9ec e9ecuti!e uti!e and and his perform performance. ance. It is part partly ly open in the sense a portion for self appraisal e9isting in the EPA syst system em is op open en.. <u <utt un unli li#e #e ot othe herr parts parts it do does es no nott ca carry rry any any /eightage. 1hus assessee does not ta#e it seriously and becomes a routine :ob. As other parts are confidential* assessee feel that assessors assess ors gi gi!e !e ttheir heir !ie/s in aan n un unguarde guarded d manner. manner. Since

self

apprai app raisal sal does not carry any /eight /eightage age the total EPA sys system tem  becomes confidential. )

1he

e9isting

 performance

system against

pro!ides the

scope

for

assessment

tas#sCtargets

set

but

of

ma9imum

respondents feel that there is often no clarity and agreement* on the tas#sCtargets bet/een the assessor and the assessee. >ence E9ecut E9e cuti!e i!e are not hap happy py /ith /ith the e9i e9isti sting ng e!alua e!aluatio tion n pro proces cesss /hen they found that managers ha!e been appraising them on tas#sCtargets underta#en during the year. E9ecuti!es also feel that since sin ce there has been no cle clear ar tas#C tas#Ctarg target et it becom becomes es a fru fruitl itless ess e9erci e9e rcise se and the app apprai raiser ser som somee tim times es bec become omess /hims /himsica icall in apprasing appras ing the app appraisee raisee th thee abased on the sta stateme tementsC ntsC feed feedbac# bac# gi!en gi! en by the assess assessee. ee. Bnd Bnder er the e9isting e9isting syst system* em* assess assessee ee is re7uired to mention the tas#Ctarget achie!ed during the assesment

72

72

 

year. Assee generally generally a!oids the tas#Ctargets /hich heCshe has not accomplished. @)

E9ecut E9ecuti!es i!es ffeel eel tthat hat the the foc focus us is gi!en on in indi!id di!idual ual p perform erformance ance rath rather er th than an gr grou oupC pCte team am pe perfo rform rman ance ce res resul ulti ting ng into into losi losing ng of groupCteam ob:ecti!es in the organisation.

-)

Although training needs of the indi!idual e9ecuti!es are identified  based on the input gi!en by the assessee in their self appraisal* but the same does not translate into realities. 3ost of the e9ecuti!es are not satisfied /ith their training and de!elopment part as most of them ha!e not attended the training as identified by them in their performance appraisal form.

)

As in all large organi6ations there are many respondents at GAIL /ho are not happy /ith the performance appraisal re!ie/ system. >o/e!er* top e9ecuti!es see performance appraisal as a system that that bri bring ngss ou outt !a !alu luab able le in inpu puts tsCf Cfee eedb dbac# ac# ab abou outt an e9 e9ec ecut uti! i!e* e* /hich helps them to compare the performance of one e9ecuti!e /ith another.

0)

1he here re ar aree ce cert rtai ain n di difffi ficu cullties ties /h /hiich ar aree face faced d by the the >+ $epartment /hile consolidating the ratings in the appraisals. A fe/ such problems /ere highlighted by the E9ecuti!es /ho deal /ith such sub:ects. 1hey are as follo/s.



A conf confli lict ct ar aris ises es be bet/ t/ee een n th thee rati rating ngss gi!e gi!en n by the the +e +epo porti rting ng ;fficer* +e!ie/ing ;fficer and Accepting ;fficer /hene!er their ratings differ drastically.

73

 



5hile identifying the training needs* the opinion of all the assesors (+eporting officer* +e!ie/ing officer and Accepting officer) are ta#en into account ignoring the suggestions of the appraisee. 1his creates discontinment among such appraisees /ho feel that they are generally ignored /hile determining the needs of the company as /hole.

8)

1he e9ist e9isting ing polic policy y p permi ermits ts that the ad!erse ad!erse remar# remar#ss aare re to be communicated to the concerned e9ecuti!e but in actual practice the ad!erse remar#s are not communicated to the e9ecuti!es. 1he  basic ob:ecti!e of both pro!ision is to encourage employee for impro!ement in the performance this not practically done. 3ost of th thee e9 e9ec ecut uti! i!es es ar aree of th thee !ie/ !ie/ss that that the the ad ad!e !ers rsee rem remar#s ar#s incl includ udin ing g th thee feed feedba bac# c# a ir irre resp spec ecti ti!e !e of rati rating ngss shou should ld be communicated.

,)

3ost of the e9ecut e9ecuti!es i!es / /ant ant tthems hemsel!es el!es tto o be assessed assessed by their their subordinates* but are not billing to be assessed by their peers* inte intern rnal al an and d e9 e9te tern rnal al cu cust stom omer ers. s. In this this #ind #ind of clim climat atee it is constr con strued ued that that e9ecut e9ecuti!e i!ess are not in fa!our fa!our of

@0°  appraisal

system.. Some open discus system discussions sions should be conduc conducted ted bet/een the assessors and the assessees. &)

E9ecut E9ecuti!es i!es aalso lso feel tthat hat tthe he ttime ime durati duration on gi gi!en !en b by y the company company for pro!iding inputs in terms of filling up appraisal forms is !ery less resulting in to delay in the o!erall process.

%) E9ecuti!es feel that counselli counselling ng is an inbuild e9ercise and part of the entire Performance Appraisal System and is necessary for all

74

 

the apprai appraisee seess

irr irresp espect ecti!e i!e of their rat rating ings. s. >o/e >o/e!er* !er* th this is is

re7uired and important for poor performers to moti!ate them. At the same time it is also re7uired for the e9ecuti!es /ho get good ratings* to moti!ate them for further better performance. %%)) i %% ina nall lly* y* e9ec e9ecut uti! i!es es are are of th thee !ie/ !ie/ that that there there is no ne need ed to separate the potential appraisal system. It should remain in its  present format. 1he parameters as indicated in the potential appr ap prai aisa sall are no nott ad ade7 e7ua uate te to as asse sess ss the the pot poten enti tial al of the e9ec e9 ecut uti! i!es es.. E9 E9ec ecut uti! i!es es feel feel th that at mo more re fact factors orsCp Cpara arame mete ters rs ar aree re7uired to be added.

75

 

RECOMMENDATION %)

In tthe he ccomp ompany any no form format at ttarge argets ts aare re set set for the e9e e9ecut cuti!e i!ess or teams before the commencement of the assessment year. <ut in the the e9 e9is isti ting ng sy syst stem em th thee ap appra prais isee ee is re7ui re7uired red

to gi!e his hisCh Cher er

feedbac# for achie!ements* inno!ations* constraints etc* as part of the e9isting system. So formal targets should be set for each e9e!uti!e. )

Perform Performance ance ap appraisa praisall sho should uld n not ot be lin#ed lin#ed /i /ith th tthe he in indi!idu di!idual al ac achi hi!em !emen ents ts u unt ntil il

e!er e!ery y

in indi di!i !idu dual al in in th thee or orga gani nisa sati tion on iiss

con!enced on /hatCho/ appraiser e9pects himCher to perform. It is !ery difficult to achie!e* so it is better to ha!e a !ariety of re/ards. 1he re/ards could be either in monetary terms or non' monetary terms* some of the could beH (a) (a) Em Empl ploy oyee eess /h /ho o ha ha!e !e do done ne so som me e9ce e9cept ptio iona nall /or or# # in thei theirr specialised area* their names can be published in the GAIL e/s letter or may be gi!en a F4ertificate of Achie!ement /ith suitable monetary re/ards. @)

Ind Indi!i i!idua duall mana managers gers per perform formanc ancee shoul should d be the focal poi point nt of discussion rather than rating as en!isaged in the e9isting system i.e.  point scale or 8 point scale for measuring performance. 3utual 3utu al discus discusssions ssions /ith regard to understandi understanding ng and meas measuring uring of performance bet/een the assessors and assessees should be encouraged* /hich facilitate /hat has been e9pected and /hat has  been achie!ed.

76

 

-)

1he present system does not ha!e any mecha mechanism nism** /hich gi!es regularr feedbac regula feedbac# # on the perfo performnce rmnce of the asse assessee. ssee. 1he e9isting e9isting system should be impro!ed upon pro!iding such scope /here /here by employees are helped to #no/ their strengthes and /ea#nesses by /hich the appraisee appraisee tries to impro impro!e !e and de!elop de!elop during the assessment year.

)

In th thee tra training ining needs the aapprais ppraisee ee sho should uld n not ot be as#ed to fill fill up the details of the training undergone during pre!ious years since this his

in info form rmat atiion

is

alre alread ady y

a! a!ai aila labl blee

/i /ith th the

1r 1rai aini ning ng

$epartment. 8) 5or#sh 5or#shops ops at leas leastt t/ice iin n a year on the ssub:ect ub:ect for for +eport +eporting ing and +e!ie/ing ;fficers should be conducted in order to pro!ide them some #no/ledge about the system and procedures for assessing the appraisee. ,) A boo#let sshould hould be supp supplied lied cont containin aining g detail gu guideli idelines nes that m may ay help the appraisee appraisee to assess hisCher hisCher subordi subordinate. nate. Som Somee illustr illustration ation of targets and assessment for e9ecuti!es in different departments and grades can be prepared /ith the help of managers and can be included in the boo#let. &) 5it 5ith h respec respectt to the par param amete eters rs on /hich /hich the appra appraise iseee is ass assesse essed* d* it is suggested that certain parameters should be common for both technicalCno techni calCnon'tech n'technical nical e9ecut e9ecuti!es. i!es. 1he e9ist e9isting ing system pro!id pro!ides es com co mmo mon n

pa para ram meter eterss fo forr bo both th tech techni nica call an and d non' non'te tech chni nica call

e9ec e9 ecut uti! i!es es.. >e >enc ncee ce cert rtai ain n sp spec ecia iali li6e 6ed d para param meter eterss sh shou ould ld be

77

 

incorporated for technical or non'technical e9ecuti!es* suiting their  :ob re7uirments. %)) %

1h 1hee Poten Potenti tial al Ap Appr prai aisa sall Sys Syste tem m sho shoul uld d not be a in bui built lt on one* e*

rather it should be a separate one. 1he e9isting EPA system is li lin# n#ed ed /i /ith th th thee pr prom omot otio ion n po poli licy cy and and com compe pens nsat atio ionC nCsa sala lary ry administration. In !ie/ of this* the prime ob:ecti!e of the EPA system that is aimed at de!elo de!elopment pment of e9ecuti!e e9ecuti!ess is defeated. defeated. It is al also so !ery !ery di diff ffic icul ultt

to deli delin# n# th thee e9 e9is isti ting ng EPA EPA sy syst stem em fr from om

 promotionCcompensation policies. ;n the other hand it is also not good to ignore the de!elopment needs of the e9ecuti!es. 1hus the main emphasis should be on e9ecuti!e de!elopment. 1his can be achie!ed achie! ed /hen E9eu E9eucit!e cit!e Potent Potential ial App Appraisal raisal sys system tem is deli delin#ed n#ed from the Performance Appraisal System and made a separate one /ith primary focus on de!elopment of e9ecuti!es.

78

 

CONCLUSION 1he primary ob:ecti!e of Perofrmance Appraisal S System ystem is tto o ser!e as an aid in the tota totall proces processs for caree careerr prog progres ressio sionCp nCprom romoti otion on of the appra ap prais isee ee

as /ell as a de de!e !elo lopm pmen enta tall tool tool.. >o >o/e /e!e !er* r* sinc sincee the the

Performance Perform ance Apprai Appraisal sal +e!ie +e!ie/ / S System ystem is strongly strongly lin#e lin#ed d / /ith ith the  promotion

e9erciseJ

(Performance

Appraisal

+e!ie/

rating

constituti const ituting ng tthe he most most impo important rtant crit criteria eria for for ca career reer p progressi rogression on from one le!el le!el to tthe he ot other) her) it iiss percei percei!ed !ed more as m means eans in the the h hands ands of the reportingCre!ie/ing officer to control their subordinates. 1he other important aspect of ‘employee de!elopment" is not getting due import importanc ancee in the e9ist e9isting ing syst system. em. It can thu thuss be conc conclus lusi!e i!ely ly stated that the present Performance Appraisal +e!ie/ System needs to  be re!ie/ed and refocussed such that it can ser!e the purpose for /hich it is intended* in a more comprehensi!e m manner. anner.

79

 

:I:LIOGRAPH@



///. >r.com



///.humancapital .com



Employee 3anual of GAIL



///.humanresources.com



//.hrd.com



///.indiainfoline.com

80

 

CERTIFICATE 1his is to certi certify fy that the Proble Problem m Sol!ing Pro:ect /or# on F  A S-u6 $! -" E"&-'/"!"## $ -" E;'#-'!, P"%$%m!&" A00%'#* S6#-"m $ G# Au-$%'-6 $ I!' L'm'-" (GAIL) is an original /or# and

that this /or# has not been submitted to SriSim or else/here in any form. 3y indebtedness to other /or#sC publications has been duly ac#no/ledged at the rele!ant places. 1he pro:ect /or# /as carried during %8th ;ctober  to %, th April  in the 4orporate ;ffice in <hi#a:i 4ama Place* e/ $elhi.

$ate H

V. V'6

PG$<3 (%&&&'%)

M.R.GERA (Prof)* SriSim* =asant =ihar  e/ $elhi'%%8

VANDANA CHANANA Sr.3anager* >+ $epartment Gas Authority of India Ltd. <hi#a:i 4ama Place  e/ $elhi'%%00

81

 

ACKNO7LEDGEMENT I am than#ful to GAS AUTHORIT@ OF INDIA LIMITED (GAIL) for gi!ing me an opportunity to /or# in the >+ $epartment for my Problem Sol!ing Pro:ect (PSP) and ensuring the smooth completion of the same. All throu roughout the pro: o:eect has gone under the blessings of S%' S %'.. K. V V''-" ""# "#< <% %! !* S% %''. S. N' N'6$ 6$,' ,' (D'% (D'%"& "&-$ -$% %H HR) R) M%.   M.R.G"% (I!-"%!* Gu'" S%'SIM) ! M%#. V!! C!! (S%.M!,"%) HR D"0%-m"!- (E;-"%!* Gu'").

3y foremost than#s shall be to/ards my coordin coordinators ators M%.K.C.D#  M%.:%- M"- (HRE;"&u-'/"#) under /hose sincere and de!oted

guidance I could prepare and complete the pro:ect report. I duly ac#no/ledge the timely help of e!eryone /ho has contributed in many /ays and made the pro:ect a successful endea!or.

(V.VIDH@A)

82

 

PREFACE 1hee hist 1h histor ory y of Pe Perfo rform rman ance ce Ap Appr prai aisa sall is 7uit 7uitee br brie ief. f. As a fo form rmal al manag anagem emen entt pr proc oced edur uree it /as us used ed in the e! e!al alua uattion ion of /o /or# r#  performance* it has e9isted from the time of the Second 5orld 5ar  barely  years. Performance Appraisal system began as a simple method of income  :ustification. Later it has been used for de!elopment and other acti!ities. 5ith co 5ith comp mpet etit itio ion n becom becomin ing g to toug ughe herr and and fo forei reign gn in!e in!est stme ment nt an and d multinationals being /elcomed in this country* there is a pressure on the Indian companies to perform. 1his pressure is for the sur!i!al in some cases and to e9cel and e9pand in some other cases M the one sect sector or cons consta tant ntly ly un unde derr pr pres essu sure re to pe perf rfor orm m are are the the e9 e9ec ecut uti! i!es es.. 4ompetent e9ecuti!es are becoming e9pensi!e and rare. 5ith this* e!ery e9ecuti!e is being continuously assessed for the !alue he is adding to the company. Performance Appraisal therefore has become important instrument for assessing and determining the /orth of each e9ecuti!e in relation to the company. 1his pro:ect /as basically underta#en underta#en to study the effecti!e effecti!eness ness of the e9isting E9ecuti!e Performance Appraisal of GAIL. And in the second  part of this pro:ect it has been compared /ith some other leading  publicC pri!ate sector companies. V.V'6

83

 

E=ECUTIVE SUMMAR@ Performance Appraisal is an important mechanism in an organi6ation for ad:udg ad:udging ing the em emplo ployee" yee"ss perf perform ormanc ancee in real realisi ising ng its its o!e o!eral ralll ob::ec ob ectti!es i!es.. GAIL is in the pr proc oces esss of re! re!ie/ e/iing the e9is e9istting ing Performance Appraisal system in respect of both E9ecuti!es and on' E9ecuti!es. 5ith a !ie/ to ta#e the feedbac# of the e9ecuti!es in resp respec ectt of e9 e9is isti ting ng Appra Apprais isal al C fo form rmat at Sys Syste tem* m* I /a /ass as assi sign gned ed the the  pro:ect on FThe Effectiveness Effectiveness of the Existing Perform Performance ance Appra Appraisal isal System. System . 1he Scope of the Pro:e Pro:ect ct includes e9ecut e9ecuti!es" i!es" percepti perception on and their suggestions /ith respect to the e9isting Performance Appraisal system and specific recommendations for further impro!ement.

1he methodology adopted in the e9ercise /as the de!elopment of a uestionnaire /ith a -'point scale and a fe/ open'ended 7uestions. Primary data /as collected /ith the help of uestionnaire and direct inte inter! r!ie ie/s /s .1 .1he he seco second ndar ary y da data ta /a /ass coll collec ecte ted d /i /ith th the the he help lp of  personnel manual* e9isting performance appraisal system and format. In orde orderr to cro ross ss ch chec ec# # the feed feedba bac# c# rece recei! i!ed ed fr from om diff differ eren entt respondents and to get into the details of the effecti!eness of the system direct inter!ie/ inter!ie/ method /as also adopted. +espons +esponses es recei!ed recei!ed from all cross'sections of e9ecuti!e ranging from the E'% to E'& le!el /ere collated. 1he respondents /ere selected from the 4orporate and  oida office. 1hereafter the respondents among the e9ecuti!es /ere chos ch osen en fr from om the em empl ploy oyee ee"s "s list ist on the ba basi siss of ‘4 ‘4on on!e !eni nien entt Sampling". 1he collected data /as compiled and analy6ed and /ere sho/n in percentage method* pie charts and bar diagrams.

84

 

<ased on the feedbac# recei!ed /ith the help of inter!ie/ /ith some of the respondents as /ell as representati!es of >+ and 1raining department* departm ent* !ario !arious us problem problemsC sC shortc shortcomi omingsC ngsC procedural procedural bottl bottlenec#s enec#s /ere identified. 1hese problems and shortcomings ha!e been ta#en into into ac acco coun untt /hil /hilee arri arri!i !ing ng at fi find ndin ings gs an and d su subs bse7 e7ue uent ntly ly gi!i gi!ing ng recommendations thereon.

1he fin findin dings gs of the o!er o!erall all Perfor Performa mance nce Apprai Appraisal sal Sys System tem is that that generally the e9ecuti!es are 7uite satisfied /ith the e9isting system. <ut li#e in many large organisations* there is a section of employees at GAIL /ho are not happy /it GAIL /ith h the e9ist e9isting ing per perform formanc ancee apprai appraisal sal system and fee feell that a great greater er degr degree ee of ob ob:ecti :ecti!ity !ity needs tto o be bu built ilt into the system. 1he Performance Appraisal +e!ie/ System must also lend itself to identifying de!elopmental needs of the employee and be used not merely as an instrument of re/arding the employee by means of promotion* but also for employees de!elopment. Some of the other obser!ations included the follo/ingH 

1he Present System does not ha!e any mechanism* /hich gi!es regular feedbac# on the performance of the assessee. 1he e9isting syste sys tem m sh shou ould ld be im impr pro!e o!ed d up upon on pr pro! o!in ing g su such ch sc scope ope /h /her ereb eby y employees are helped to their strengths and /ea#nesses* by /hich the appraisee tries to impro!e and de!elop during the assessment year.



5or#shops 5or#sh ops at least t/ice in a year on the sub:ect for +eport +eporting ing and +e!ie/ing ;fficers should be conducted in order to pro!ide them some #no/ledge #no/ledge about the system and proced procedures ures for assessing assessing the appraisee.

85

 

Bu"#-'$!!'%" %)

1h 1her eree is a n nee eed d for for E9 E9ec ecut uti! i!ee Pe Perf rfor orma manc ncee Ap Appr prai aisa sall sy syst stem em** in your company.  Strongly Agree  Agree  $isagree  Strongly $isagree

)

E9 E9ec ecut uti! i!es es are are sati satisf sfie ied d /i /ith th th thee pre prese sent nt E9 E9ec ecut uti! i!ee pe perf rform orman ance ce appraisal system  Strongly Agree   

@)

Agree $isagree Strongly $isagree

1he E9ecuti!e performance appraisal (EPA) is a re/ard mechanism and aimed at de!elopment of e9ecuti!es.  Strongly Agree  Agree  $isagree  Strongly $isagree

-) re!i 1e/ he here resy iissstem a ne need ed oma# de deli n#it the the aapp ppra isa sal l ti!e sy syst stem em rom m !elo th the e pmen sa sala lar ryt re!ie/ syst em to tto a#e elin# mor ore e rai ob ob: :ec ecti !e an and dffro de!e de lopm ent oriented..  Strongly Agree  Agree  $isagree  Strongly $isagree )

EPA EPA is li lin# n#ed ed /it /ith h th thee pr prom omot otiion onal al pol policy icy and ca carr rrie iess hi high gher er /eightage at the time of promotion. pro motion.  Strongly Agree   

Agree $isagree Strongly $isagree

86

 

0)

1he sel self' f'ap appr prai aisa sall pa part rt in th thee e9 e9iisti sting pe perf rfor orm man ance ce app appra rais isal al form pro! pro!ide idess ade ade7ua 7uate te opp opport ortuni unity ty to the e9e e9ecut cuti!e i!ess to assess assess hisCher performance.  Strongly Agree  Agree  $isagree  Strongly $isagree

8)

on on'a 'ass ssiign gnin ing g of ra rati ting ng in th thee se self lf'a 'app ppra raiisa sall pa part rt af affe fect ctss the the effecti!eness of the E9ecuti!e Performance Appraisal.  Strongly Agree  Agree  $isagree  Strongly $isagree

,)

E! E!er ery y e9 e9ec ecut uti! i!ee sh shou ould ld be be gi gi!e !en n an o opp ppor ortu tuni nity ty tto o ra rate te h his isCh Cher er o/n performance and such rating should carry some /eightage in the entire Performance appraisal System.  Strongly Agree  Agree  $isagree  Strongly $isagree

&)

1h 1hee Perf Perfor orm man ance ce A App ppra rais isal al S Sys yste tem m he help lpss th thee e9ec e9ecut uti! i!es es tto o find find their the ir str streng engths ths M /ea#ne /ea#nesse ssess rel relati ating ng to their their perf perform ormanc ancee and faci facili lita tate tess in pr pro! o!id idin ing g su suff ffic icie ient nt op oppo port rtun unit itie iess fo forr fu furt rthe herr de!elopment.  Strongly Agree  Agree  $isagree  Strongly $isagree

87

 

%) 1as#sC1argets indicating the #ey Performance Areas are set for each e9ecuti!e by hisCher +eporting officer in consultation /ith the former at the beginning of the year.    

Strongly Agree Agree $isagree Strongly $isagree

%%) Periodic +e!ie/s of tas#Ctarget assigned are done at reasonable inte inter! r!al alss by the +e +epo port rtin ing g of offi fice cerr in or orde derr to as asce cert rtai ain n the the achie!ement and constraints faced by the appraisee. Strongly Agree • Agree • $isagree • • Strongly disagree %) +eport +eporting ing offic officer er during such re!ie/ m meetin eeting g tires to remo!e th thee constraints const raints faced by the appra appraisee isee and sugg suggests ests impro!isa impro!isation tion in carrying out the tas#. Strongly Agree • Agree • $isagree • •

Strongly $isagree

%@) 1he e9ecuti!es e9ecuti!es are gi!en suf sufficie ficient nt opport opportunit unities ies to e9press the their ir feeling feeli ng /ith regard to the constraint constraintss that sheChe has faced during the assessment year. Strongly Agree • Agree • • $isagree Strongly $isagree •

88

 

%-) 1he suggestions gi!en by the employees are in!ariably considered and /here!er to /hate!er e9tent possible* implemented by the management. Strongly Agree • Agree • $isagree • Strongly $isagree • %)) 1h % 1hee su sugge ggest stio ions ns** /h /hic ich h are are im impl plem emen ente ted d in the the com compa pany* ny* ar aree re/arded suitably. • Strongly Agree • Agree $isagree • Strongly $isagree • %0) 1he e9isting EPA system pro!ides that the +eporting ;fficer is in!ariably the immediate super!isor. Strongly Agree • Agree • $isagree • Strongly $isagree • %8)) 1h %8 1hee pr pro! o!is isio ion n fo forr ge gett ttin ing g feed feedba bac# c# on the the issu issuee as /h /het ethe herr e9ecut e9e cuti!e i!e has subm submitt itted ed hisChe hisCherr return return of mo!ab mo!ableC leCimm immo!ab o!able le  property and E9ecuti!e record updating form ha!e no rele!ance in the E9ecuti!e Performance Appraisal System. Strongly Agree • Agree • $isagree • Strongly $isagree • %,) 1he assignments are gi!en to the e9ecuti!es best match /ith their educational bac#ground* aspirations and :ob satisfaction. Strongly Agree • Agree • $isagree • • Strongly $isagree

89

 

%&) 1he e9ecuti!es feel that ttheir heir appraisals generally match /ith their indi!idual ob:ecti!es. Strongly Agree • • • •

Agree $isagree Strongly $isagree

) 1he pro!ision for getting the feedbac# from the appraise in respect of the assi assign gnm men entts al allo lottted to him himChe herr is /el /ell ta# a#en en into nto consideration by the appraiser. • Strongly Agree • Agree $isagree • Strongly $isagree • %)) 1h % 1hee fact factors orsCp Cpar aram amet eters ers** ag agai ains nstt /h /hic ich h the the pe perfo rform rman ance ce of an e9ecuti!e is being assessed* are sufficient. Strongly Agree • Agree • $isagree • Strongly $isagree • ) 1he pro!ision for pro!iding /rite'up in support of ‘;utstanding" or ‘belo/ satisfactory" by the +eporting ;fficer is sufficient. Strongly Agree • • • •

Agree $isagree Strongly $isagree

@) 1he assessment of integrity by the +eporting officer is ade7uate for arri!ing at a conclusion. Strongly Agree • Agree • • $isagree Strongly $isagree •

90

 

-)) 1h 1hee ad ad!er !erse se rem remar ar#s #s rec recei ei!e !ed d in resp respec ectt of any any appra apprais isee ee is communicated and his submissionCrepresentation is also ta#en into consideration by the Appellate Authority before the e9pungingCupholding such ad!erse remar#s. Strongly Agree • Agree • $isagree • Strongly $isagree • ) 1he opinion of subordinates should also be ta#en into account at the time of performance re!ie/. Strongly Agree • • Agree $isagree • •

Strongly $isagree

0) 1he appraisal process pro!ides and ma#es easy to identify the training needs of each and e!ery e9ecuti!e. Strongly Agree • Agree • $isagree • Strongly $isagree • 8) 1he training progrms (identified through the performance appraisal system) that are underta#en generally match /ith the e9ecuti!es functionalCpersonal de!elopment plans. Strongly Agree • Agree • $isagree • Strongly $isagree • ,) In the appraisal !ery little /eightage is gi!en on de!elopment aspe as pect ctss an and d mo more re /e /eig ight htag agee on pr prom omot otio iona nalC lCco comp mpens ensat atio ion n aspects. Strongly Agree • Agree • $isagree • • Strongly $isagree

91

 

&) 1he Performanc Performancee Apprais Appraisal al System tta#es a#es into acc account ount the car career eer de!elo de! elopme pment nt of e9e e9ecut cuti!e i!ess and ind indi!i i!idual dual per perform formanc ancee relate related d  pay. • • • •

Strongly Agree Agree $isagree Strongly $isagree

@)) 1h @ 1hee e9 e9ec ecut uti! i!es es reco recogn gni6 i6ee th that at pe perfo rform rmanc ancee ap appr prai aisa sall /i /ill ll be effecti!e only /hen the appraiser recei!es the correct feedbac#. • Strongly Agree • Agree $isagree • Strongly $isagree • @%) 1he system pro!ides a scope for employee counselling by the accepting office to impro!e their performance. Strongly Agree • Agree • $isagree • Strongly $isagree • @) E9e E9ecut cuti!e i!esCA sCAppra ppraise iseee con consid sider er that that cou counse nselin ling g is an im import portant ant toolCinstrument to bring out confidence among them. Strongly Agree • • • •

Agree $isagree Strongly $isagree

@@) 1he e9isting E9ecuti!e Performance appraisal pro!ides scope for team ob:ecti!e. Strongly Agree • Agree • • $isagree Strongly $isagree •

92

 

@-) E!ery appraise appraise should should be made a/are of hisCh hisCher er o/n rating aatt the end of Performance Appraisal. Strongly Agree • • • •

Agree $isagree Strongly $isagree

@) In your opinion* /hat should be the periodicity of performance re!ie/K • Strongly Agree Agree • $isagree • Strongly $isagree •

@0) $o you feel that e9isting performance appraisal system does not fulfill the re7uirement of organi6ation in the present scenarioK  Nes  o    @8) $o you feel that the appraisee should not only be assessed by hisChe his Cherr sup superi erior or but als also o by hisChe hisCherr supe superio rior* r* pee peers* rs* custom customers ers (<oth internal and E9ternal). Subordinates • Peers • Internal 4ustomers • • E9ternal 4ustomers @,) @0'$egree Appraisal System is necessary for e9ecuti!es in the  present scenario. Nes   o   

@&) In your opinion /hat should be the additional factorsCparameters  by /hich the performance of the assess is to be assessed.  OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO   OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO   OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO 

93

 

-) $o you thin# potential appraisal system should not be a part of Appraisal system but a separate oneK  OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO   OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO  -%)In your opinion /hat impro!ement can be brought in the e9isting systemK  OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO   OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO   OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO  -) Please /rite do/n any other comments comments you /ish to ma#e on your e9perience of appraisal.  OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO   OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO   OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO   OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO   OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO 

  O-"% D"-'*#  ame of the EmployeeOOOOOOOOOOOOOOOOOOOOOOOOOOOO  Employee umberOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO  Grade C $esignationOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO  $epartmentOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO  $ateOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO 

94

 

Qes. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37.

Strongly Agree

Agree

Disagree

Strongly Disagree

95

 

CONTENTS T$0'&#

P," N$.

C"%-''&-" A&!$<*","m"!P%"&" E;"&u-'/" Summ%6 CHAPTER1

111

4ompany Profile CHAPTER2

+e!ie/ of Literature CHAPTER3

122

21

;b:ecti!e of the study CHAPTER4

2225

3ethodology CHAPTER5

2>3

An Introduction to the GAIL system CHAPTER>

31

;bser!ations CHAPTER

32>

Analysis F'!'!,# ! R"&$mm"!-'$!#

5

C$!&*u#'$!#

>

:'+*'$,%06



A!!";u%"#

96

 

Chapter-1 COMPANY PROFILE

97

 

Chapter-2 Chapter-2 Review of literature

98

 

Chapter-3 Chapter-3 OBJECTIVE OF THE STUDY

99

 

Chapter-4  Chapter-4  methodology

100

 

Chapter-5  An introduction to the GAIL’ s system

101

 

Chapter-6  observation

102

 

Chapter-7  ANALYSIS

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