TABLE OF CONTENTS

EXECUTIVE SUMMARY

OBJECTIVE OF THE PROJECT

INTRODUCTION OF COMPANY

PERFORMANCE APPRAISAL

13

REVIEW OF LITERATURES

28

PERFORMANCE MANAGEMENT SYSTEM IN NHPC

31

RESEARCH METHODOLOGY

47

ANALYSIS&INTERPRETATION

50

LIMITATIONS

64

CONCLUSION

66

SUGGESTIONS

68

QUESTIONNAIRE

70

REFRENCE & BIBLIOGRAPHY

73

EXECUTIVE SUMMARY
The Performance Appraisal is a process of setting objectives, making plans to achieve
those objectives and accomplishing the desired results. Rewards and recognition are the
end stage of this process. Organizations use this system to assess the performance of an
individual, a team, a function and then the organization as a total. In this project, the
whole performance management system is described for the company NHPC.
This cycle starts when NHPC signs a Memorandum of Understanding (MOU) with the
Government of India. In this memorandum the vision, mission and values, targets and
action plans are mentioned. In NHPC, system have been devised to cascade
Organizational Goals into individual goals by framing out objectives of the company
from the MOU at corporate level and there by preparing a Balance Score Card both at
corporate and unit level. The summarized feature of this process is sequentially breaking
down the organizational goals into an individuals.
This project describes about the Performance Management System which is followed in
NHPC. This project also describes the problems faced by the appraises and the appraisers
in this system. It also elaborates about the steps taken by the appraisers to improve the
performances of the appraisees so that their efficiency can be increased and later the
rewards and recognitions are given in the form of promotions, incentives and
empowerment.

OBJECTIVE OF THE PROJECT

To study the process and to understand the importance of Performance Management
System in NHPC that synchronizes the performance of the employees so as to make the
work effective.

To analyze the Performance Management System of NHPC in detail and its

effectiveness.
To analyze the problems faced by the appraisee and the appraiser in this system.
To analyze the steps taken by the appraisers for the improvement of the
performances of the appraisees.

INTRODUCTION OF COMPANY
NHPC LIMITED
NHPC Limited, formally known as National Hydro electronic Power Corporation Ltd.
was incorporated in the year 1975 with an authorized share capital of Rs. 2,000 million
and with an objective to plan, promote and organize an integrated and efficient
development of hydroelectric power in all aspects. Later on NHPC expanded its objects
to include development of power in all its aspects through conventional and nonconventional

sources

in

India

abroad.

At present, NHPC is a Mini Ratna Category-I Enterprise of the Govt. of India with an
authorized share capital of Rs. 1,50,000 Million(15000cr)and total asset base of
54,347Rs(as on 31st march 2014). NHPC is ranked as a premier organization in the
country for development of hydropower and certified with Integrated Management
System comprising ISO-9001:2008(Quality Management System), ISO-14001:2004
(Environmental Management System) and OHSAS-18001:2007(Occupational Health
&Safety Management).

Initially, on incorporation, NHPC took over the execution of Salal Stage-I, Bairasiul and
Loktak Hydro-electric Projects from Central Hydroelectric Project Construction and
Control Board. Since then, it has executed 20 projects with an installed capacity of 6507
MW on ownership basis including projects executed by NHDC Limited, a Subsidiary
Company of NHPC Limited. NHPC has also executed 5 projects with an installed
capacity of 89.35 MW on turnkey basis. Two of these projects have been commissioned
in neighbouring countries i.e. Nepal and Bhutan

PROJECTS
As on date NHPC Limited has become the largest organisation for hydropower
development in India, with capabilities to undertake all the activities from
conceptualisation to commissioning in relation to setting up of hydro projects. NHPC
Limited is also planning to take Wind and Tidal wave projects in the country.
NHPC Limited presently has an installation base of 6507 MW from 20 hydropower
stations on ownership basis including projects taken up in Joint Venture. Considering the
impediments faced during execution of these projects such as unfavourable geological
conditions, difficult law and order problems, inaccessible and remote locations, the
achievement so far is commendable. The generation performance of these stations has
been outstanding.
NHPC Limited is presently engaged in the construction of 4 projects aggregating to a
total installed capacity of 3290 MW. Given the renewed thrust on development of hydro
power in the country, NHPC Limited has drawn up a massive plan to add about 10,000
MW of hydropower capacity by the end of XIII plan (year 2022).

NET SALES V/S PROFIT

NHPC has strong track record in hydropower generation. The company started power generation
in the year 1982 with a turnover of Rs.24cr and made a net profit of Rs.7.68cr in the first year.
During the financial year 2013-2014,NHPC has achieved sales turnover of Rs.5335cr and net
profit of Rs.979cr. The company paid a dividend of Rs. 332.13cr @Rs 0.30 per share including
Rs.285.49cr paid to the govt. of India for year 2013-2014.Nhpc has not taken the equity help
since 2007-2008. The company has a likely capex plan of Rs.20000cr for XII five year plan
period. The trend of sales and profit after tax of NHPC (excluding subsidiary company-NHDC)
for last 5 years is as follows:

VISION & MISSION

VISION
A world class, diversified & transnational organization for sustainable
development of hydro power and water resources with strong environment
conscience.
MISSION
To achieve international standards of excellence in all aspects of hydro power and
diversified business.
To execute and operate projects in a cost effective, environment friendly and
socio-economically responsive manner.
To foster competent trained and multi-disciplinary human capital.
To continually develop state-of-the-art technologies through innovative R&D and
adopt best practices.
To adopt the best practices of corporate governance and institutionalize value
based management for a strong corporate identity.
To maximize creation of wealth through generation of internal funds and effective
management of resources.

PERFORMANCE APPRAISAL

Management Performance appraisal

evaluating

the

Performance

is

method

evaluating the behavior

of

of employees

appraisal

or

merit

rating is one of

the oldest and most

universal

practices of in the

work

spot,

both

the

Normally including
quantitative

and

qualitative

aspects

job

performance.

Performance

appraisal can be

an

instrument

for

of

effective

helping

people

grow and develop

in organizational

setting. Through a

Well

appraisal

system.

create learning spaces

organized

An employee can
for

himself

in

an

organization.

Effectively

practiced

and

development oriented performance appraisal & Review system,

substantially contribute to the organization health. Organization cannot do away

with PERFORMANCE APPRAISAL. Some form of assessment of performance

on a continuing basis is essential for survival as well as growth of an organization.
If and develop yardsticks to measure it, if you want to improve performance. The
performer has to be able to understand it.

Performance appraisal is a systematic appraisal of the employees personality

traits and performance on the job and is designed to determine his contribution and
relative worth to the firm.

A formal definition of performance appraisal is that, it is the systematic evolution

of the individual with respect to his or her performance on the job and his or her
potential for development

Performance appraisal is a formal structured system of measuring and

evaluating an employees job, related behaviors and out comes to discover how
and why the employee is presently performing on the job an how the employee
can perform effectively in the future so that the employee, organization and
society all benefit.

Under performance appraisal, we evaluate not only the performance of a worker

but also his potential for development.

COMPONENTS OF APPRAISAL EVALUATION

As we have seen performance evolutions can be made a verity of reasonscounseling, promotion, research, salary, administration or a combinations of these
therefore it is necessary to begin by stating very clearly the objectives of the
evolution program. Having done this, the personal evolution system should address
the questions, who, what, when, where, how? Of performance appraisal
WHO
The appraisal can be accomplished by one or more individuals involving a
combination of the immediate supervisor, a higher level manager, a personal
manager, the assessees peers, the assessee himself and the assessees subordinates.
Usually the immediate supervisor must be interested with the task of rating the
assessee because he his most familiar with his work, and because he is also

responsible for recommending or approving personal action based on the

performance appraisal. The staff specialists, i.e. the personal officer also do
appraisal.
They may advise the supervisor while evaluating their subordinates stressing the
need for evidence for making specific appraisal judgments and comparing a
particular subordinates evolution with those of others.
The appraisal of an individual may also be done by his peers such appraisal proves
effective in predicting future management success.
This approach has its disadvantage that the individual may rate himself excessively
high then it would be if his superior rated him. Many companies use rating
committees to evaluate employees. These committees consist of supervisors, peers,
and subordinates.
WHAT
The what of the performance appraisal consists in appraising non supervisory
employees for their current performance and managers for potential? It also
includes evaluation of human trades.
WHY
The why of an appraisal is concerned with
a) Creating and maintaining a satisfactory level of performance of employees
in there present jobs.
b) Highlighting employee needs and opportunities for personal growth and
development.
c) Promoting understanding between the supervisor and his subordinates.

d) Providing a useful criterion for determining the validity of selection and

training methods and techniques and forming concrete measures for
attracting individual of higher caliber to the enterprise.
WHEN
The when answers the query about the frequency of appraisal? It has been
suggested in formal counseling should occur continuously. The manager should
discuss an employees work as soon as possible after he has judged it.
WHERE
The where indicates the lo0cation where an employee may be evaluated. It is
usually done at the place of work or office of the supervisor.
HOW
Under how the company must decide what different methods are available and
which of these may be used for performance appraisal. Based on the comparative
advantages and disadvantages it is decided which method suit the propose best.

PURPOSE OF PERFORMANCE APPRAISAL

To create and maintain a satisfactory level of performance.
To provide information making decision for rewardingly of retrenchment
etc.
To guide the job changes with the help to continuous ranking.
To contribute to the employee growth and development through training, self
and management development program.
To facilitate for testing and validating selection tests, interview techniques
through compeering there scores with performance appraisal ranks.

 To facilitate fair and equitable compensation based on performance.

To help the superiors to have proper understanding about their subordinates.

OBJECTIVE OFPERFORMANCE APPRAISAL

A good performance appraisal has following objectives: Help employee to Krishak Bharti Cooperative Ltd. His weaknesses, and
improve his strengths, and thus enable him to improve his performance and that
of the department.
Generate adequate feedback and guidelines from the reporting officers to the
employee.
Contribution to the growth and development of the employee thru helping in
realistic goal setting
Help identifying employees for the porpoise of motivating, training and
developing them.
Generate significant relevant, free and valid information about employees
thus good performance appraisal and review system should primarily focus on
employee development

METHODS OF APPRAISAL
Broadly all the approaches to appraisal can be classified into:-

 Past-oriented:
Rating scales
Checklist
Forced choice method
Forced distribution
Annual confidential report
Essay method
Comparative evolution approach
Ranking method
Future oriented:
Management by objectives
Psychological appraisals
Assessment center

METODS OF PERFORMANCE APPRAISALS

Past Oriented Methods
Rating scales:
This is the simplest and the most popular technique for employee
performance. The typical rating scales system consists of several
numerical scales, each representing job related performance criterion such as
dependability, initiative output, attendance, attitude, co-operation and the
like. Each scales ranges from excellent to poor. The rater checks the
appropriate performance level on each criterion, and then computes the
employees total numerical scores.
Checklist:
In this method, the raters dont evolutes employee performance, he supplies
reports about it and the personal department does the final rating a series of
question are presented concerning and employee to his behavior. The rater,

then, to indicate if the answer to a question about an employee in positive or

negative. Generally , the questions are on yes/no pattern.
Annual confidential report method
In this method each employee is rated confidentially by one or more senior
officers for his performance. The report deals with the years work and
general opinion of the rater towards the employee. The main problem with
his method is that it is not data based and the appraisal is done the bases of
impression.
Essay method
In the essay method, the rater must describe the employee with in a number
a)
b)
c)
d)

of broad categories such asThe raters overall impression of the employees performance
The promo ability of the employee
The jobs that the employee is now able or qualified to perform
The strength and weaknesses of the employee and the traning and the

development assistant required the employee.

Comparative Evolution Approaches
These are a collection of a different methods that compare one workers
performance with that his / her co-workers. Supervisors usually conduct
comparative appraisals. As these appraisals can results in a ranking from
best to worst they are useful on deciding merits-pay increases promotions
and organizational rewards. We can classify it intoa) Ranking method
In this, the superior his or her subordinates in the order of there merits
starting from the best to the worst,. This method is subject to the hallo and
Recency effects, although ranking by two or more raters can be averaged to
help reduce biases. It advantages include ease of administration and
explanation.

360 DEGREE PERFORMANCE APPRAISAL

THE POST APPRAISAL INTERVIEW

This interview provides the employee the feedback information, and an
opportunity to the appraiser to employee his rating, the trail and behavior he
has taken into consideration etc.
Further it helps both the parties to review standards, set new standards based
on the reality factors and helps the appraisal to offer his suggestion, help,
guide and coach the employee for his advancement.

KEY ELEMENTS OF PA SYSTEMS

1) Performance Improvement:Performance feedback allows the employee, manager, and
personnel specialists to interview with appropriate action to improve
performance.
2) Compensation Adjustments:Performance evaluations help decision makers determine who
should receive pay raises.
Many firms grants part or all of their pay increase and bonuses based
upon merit, which is determine mostly through performance appraisal.
3) Placement Decisions:Promotions, transfers, and demotions are usually based on past on
anticipated performance.
4) Training and Development Needs:Poor performance may indicate the need for retraining. Likewise,
good performance indicates untapped potential that should be developed.
5) Career Planning And Development:Performance feedback guides career decisions about specific career
paths.
6) Information Inaccuracies:Poor performance indicate errors in job analysis informations
human resource plan, or other parts, or the personal management
informations systems. Reliance on inaccurate information may have led
to inappropriate hiring, training, or counseling decisions.
7) Job Decision Errors:Poor performance may be a system of ill-conceived job designs.
Appraisals help diagnose these others.
8) Equal Employment opportunity:-

Accurate performance appraisals that actually measure job- related

performance

ensure

that

internal

placement

decisions

are

not

discriminatory.

Performance Appraisal is a Nine-Step Process:

1
2
3
4
5
6
7
8
9

 At the First stage, performance standards are established based on job

description and job specification. The standard should be clear, objective and
incorporate all the factors.
The Second stage, is to inform these standards to all the employees
including appraisers.
The Third stage is following the instruction given for appraisal
measurement of employee performance by the appraisers through
observations interview, records and reports
The Fourth stage is finding out the influence of various internal and
external factors on actual performance.
The Fifth stage is comparing performance with that of other employee and
previous performance.
The Sixth stage is comparing the actual performance with the standards and
finding out deviations.
The Seventh stage is communicating, the actual performance of the
employee and other employees doing the same job and discusses with him
the reasons for positive or negative deviations from the preset standards as
the case may be.
The Eighth stage is suggesting necessary changes in standards, job analysis
internal and external environment.
The Ninth stage is fallow up performance appraisal report. This stage
includes guiding, counseling coaching and directing the employee or making
arrangements for the training and development of the employee.

WHY APPRAISAL TECHNIQUES PROVE FAILURE

Performance appraisal techniques techniques have often failed to give a correct

assessment of the employee. The causes of such failure are:1) The supervisor plays dual and conflicting role of the both the judge and the
helper.
2) Too many objectives often cause confusion.
3) The skills required for daily administration and employee development are
in conflict.
4) Poor communication keeps employees in the dark about what is expected of
them.
5) There is the difference of opinion between a supervisor and a subordinate
concerning the liters performance.
6) Feedback on appraisal is generally unpleasant for both supervisor and
subordinate

LITERATURE REVIEW ON PERFORMANCE

APPRAISAL
Bendick, M., Egan, M. & Lofhjelm, S. (2001). HR performance appraisal system, Vol.
24
No.
2,
pp.
10-25.
This articles focus on the US workplace. Organizations can benefit from performance
appraisal offering diversity training to employees. That is, training employees to respect
others and not to act in a discriminatory manner towards fellow employees.
McGregor, L. (2000). Career Development International. Vol. 5 No. 4/5, pp. 244-249.
This article presents two models of mentoring. The traditional view of mentoring is
facilitated mentoring where the more experienced person (mentor) acts as a role model
for the less experienced person (mentee). Another approach is also offered guided
learning. A more experienced co-worker uses guided learning to teach a less experienced
worker new skills.
Taylor, W. (2005). The Age, My Career Section, p. 11, 26/11/2005.
This paper outlines the experiences of two executive women in developing an internal
mentoring program. The experiences demonstrate that the mentoring relationship not only
benefits the mentees but also the mentor
While the increased demand for executive coaching in the marketplace has opened up,
the increasing number of coaches of every type, training, and perspective has also grown
(Brotman et al., 1998; Joo, 2005; Kampa-Kokesh, & Anderson, 2001; Wasylyshyn,
2003). It is surprising that with the increased use of executive coaching and the rising
number of coaches, there has not been a professional association formed to develop and

monitor the standards, requirements, and competency validation solely for executive
coaches (Brotman et al., 1998; ICF, 2006; Wasylyshyn, 2003). This need has brought
reactions from executives, coaches, and clients who suggest standardized methods.
Executives have recognized the significance of executive coaching in their professional
performance, both personally and organizationally (Effron et al., 2005; Joo, 2005;
Kampa-Kokesh, & Anderson, 2001; Turner, 2006; Wasylyshyn, 2003). During the
beginning years of executive coaching, it was seen as an executive crutch to assist nonperformers. Today, executive coaching is looked upon as a necessary tool and in some
cases reserved only for senior executives (Joo, 2005; Kampa-Kokesh, & Anderson, 2001;
Stevens, 2005; Turner, 2006; Wasylyshyn, 2003). One reason for the about face attitude
could be the value executive coaching brings as a "time-out" break, from the unyielding
demands of the corporate world, for inner-thought, assessment, positive criticism, and a
co-development of strategies (Bacon & Spear, 2003; Brotman et al., 1998; Joo, 2005;
Kampa-Kokesh & Anderson, 2001; Kilburg, 1996a; Orenstein, 2002; Stevens, 2005;
Turner, 2006; Wasylyshyn, 2003).
\
One of the premier uses of executive coaching is to deliver "just-in-time" strategies for
increasing one's personal performance and effectiveness by transforming weaknesses into
strengths (Bacon & Spear, 2003; Kampa-Kokesh, & Anderson, 2001; Kilburg, 1996a;
Orenstein, 2002; Wasylyshyn, 2003). Due to this increase in personal ROI, corporate
America is enamored with executive coaching and the benefits it has brought in recent
years (Bacon & Spear, 2003).
With many corporate incomes decreasing over the past few years, corporations have
reevaluated their training and development practices, to include the use of external
sources (Joo, 2005; Kampa-Kokesh, & Anderson, 2001; Turner, 2006; Wasylyshyn,
2003). As a result, executive coaching focuses on ensuring alignment with corporate
strategy (Bluckert, 2005b; Brotman et al., 1998; Edwards, 2003; Levinson, 1996; Joo,
2005; Orenstein, 2006; Peterson, 1996; Saporito, 1996; Turner, 2006). In this changing
corporate setting, executive coaching must be used in a laser-focused manner, rather than
a liberally used improvised solution (Orenstein, 2006). Those corporations who have
identified the need and usefulness of executive coaching have created an inner coaching
environment to facilitate coaching through internal coaches (Turner, 2006).

It is in the new corporate coaching culture of companies employing their own coaches
(internal) where the chemistry of the coaching relationship takes a back seat to replicable
measures in the coaching protocol (Joo, 2005; Kampa-Kokesh & Anderson, 2001;
Stevens, 2005; Turner, 2006; Wasylyshyn, 2003). The internal coach, unfortunately, finds
him or herself in a dilemma of possibly losing one of his most prized outcomes, which is,
assisting clients to become masters of change management (Wasylyshyn, 2003). Another
downturn of this "commoditization" of executive coaching is to put a limit on the use of
coaching, and to what extent, documenting the benchmarks, stages, and action steps.
Doing so, realistically, diminishes the coaching process to a cookie cutter approach
including a preset number of sessions and strategies rather than a co-developed strategic
plan developed over the course of an ongoing relationship. (Joo, 2005; Kampa-Kokesh &
Anderson, 2001; Turner, 2006; Wasylyshyn, 2003)

PERFORMANCE
MANAGEMENT
SYSTEM
IN

PERFORMANCE MANAGEMENT SYSTEM IN NHPC

The system is divided into two parts:
Part A: Key Result Area (KRAs)
Part B: Skill/ Competency Assessment

Definition of Performance
Definition of Performance in MAP is based upon Key Result Areas or KRAs and
Routine Responsibilities.
~ KRAs are "critical outcomes towards which effort is directed to achieve desired
business results."
~ Routine Responsibilities are significant on-going tasks or outcomes that are
undertaken or delivered on a day-to-day basis.

 Unique Role and Responsibility (URR) templates provide the KRAs, relative
weight of KRAs and Routine Responsibilities, the Competencies and their
required Proficiency Levels for a role. The URR Template in MAP helps deliver
consistency and clarity on expected performance measures to Appraisees and
Appraisers alike.
MAP allows the Appraisee to define the performance measures applicable to the
Appraisee's situation using a combination of KRAs and Routine Responsibilities.
The achievement against targets set for each of these will together constitute the
Appraisees Performance Plan in the Performance Cycle or Period.

Performance Cycle at a Glance

A Performance Cycle refers to the year for which your performance is being evaluated.
The Performance Cycle of MAP is one year coinciding with NHPC financial year.
MAP follows an April to March cycle and consists of three key phases:
1. Performance and Development Planning
2. Mid Year Review
3. Final Review
The figure below provides an overview of the Performance Cycle with key dates for each
phase.

PERFORMANCE AND DEVELOPMENT PLANNING

Performance Planning Phase of MAP is initiated in the month of March upon the
finalization of the draft budget for NHPC. The targets finalized for the Unit, Product
Group, Department and consequently the Section will serve as the starting point for an
individual to do his Performance Planning.
Discussion with Appraise
Creating the Performance & Development Plan (P&DP)

The Performance Plan of an individual essentially consists of one section KRAs. This
is the essential component of any Performance Plan and the individual is expected to fill
in this section adhering to all guidelines in order to be able to submit his plan to his
Appraiser.
1. Selecting the KRAs
The Appraisee will select relevant KRAs from the KRA Master of his function (i.e. the
function to which he has been mapped). A minimum of six and a maximum of fifteen
KRAs can be selected. (max. 15 from own KRA Master; 5 optional which can be taken
from KRA Masters of other functions so as to ensure that the total no. of KRAs per plan
does not exceed 15).
2. Target Setting and Action Plans for KRAs
For each KRA, 5 levels of performance must be defined by the Appraisee that quantify
the extent of achievement in a given timeframe (L5 being the best and L1 being the
lowest level of performance)
Along with these, the Appraisee will develop an Action Plan consisting of specific steps
required to achieve the target for each KRA.
3. Assigning Weight age
The Appraisee will propose weight ages between 5% and 25% for each KRA. The total
weight age for KRA (C) should be equal to or more than the Minimum Weight age for
KRA(C) prescribed for the relevant URR to which the individual has been mapped. The
total of all KRA weight ages should add up to 100%. Maximum limit of weight ages
have been suggested for all KRAs across all functions for all the categories of URRs.
Executives while assigning weight ages to the KRAs selected by them in their plan
cannot exceed the maximum permissible weight ages specified against each KRA. This
is ensured through inbuilt system checks.
The P&DP is now ready for submission.

Obtain Appraisers and Reviewers Sign-off

After creating his P&DP, the Appraisee will submit his plan to his Appraiser. If the
Appraiser wishes to modify the plan, he will discuss the same with the Appraisee and
make the necessary modifications. Thereafter, the Appraiser will forward the
Performance Plan to the Reviewer for final sign-off. In case the Reviewer wishes to
modify the plan, he can make the required modifications in the Plan after discussing
with the Appraisee and Reviewer and then grant final approval.

MID YEAR REVIEW

Mid Year Review is an interactive feedback session between the Appraisee and Appraiser,
conducted during the month of October for the half-year ended September 30. It is a midcycle process for reviewing and tracking achievements thus reducing the scope for yearend surprises.
Mid Year Review begins with the Appraisees Self-Appraisal. In his self-appraisal, the
Appraisee will comment on his/ her current level of achievement on KRAs, which will
then be discussed with the Appraiser for his feedback and inputs. During this phase, the
Appraisee also identifies both behavioral and functional competencies for his
Development.
Mid Year Review Process
Appraise does self
review of KRAs &
identifies
Competencies for
Development

Submits

Appraiser gives
his comments &
feedback

Mid Year
Review
Completed

FINAL REVIEW
The Final Review Phase will begin with the Appraisees self-appraisal wherein he/she
gives the assessment of Target Achievement on each KRA defined in the Performance
Plan (Part-A).
The Appraiser will review the outcomes of self-appraisal and give his own assessment
of the achievement of the targets in the performance plan for each KRA. In addition, he
will also give his assessment on the Skills/ Competencies defined in Part B.

Final Review Process

Appraisee
Does Self
Assessment
of KRAs

Submits

Appraiser
gives his
assessment of
KRAs & Part B

Sends
back

Appraisee
gets to see
Appraisers
Assessment
of KRAs

Reviewer
Gives Final
OR

Assessment
on KRAs &
Part-B

Accepts

OR

Rejects
after
discussion

Rejects After
Discussion
Requests Discussion
Final Score of Part-A
is communicated to
Appraisee along with
skill/competencies for
development.

Final Composite Score

gets calculated in the
system after allotting
weight ages to Part-A and
Part B, also taking into
account Deduction of
Marks for Late
Submission of Part-A, if
any

Accepting Authority
(PG/Function Head
or Unit Head, as the
case may be) does
Final Assessment of
Part B

After appraisal by Appraiser, the plan will come back to the Appraisee for his
acceptance of the assessment done for KRAs (the assessment of Part B will not be
visible to the Appraisee). If the Appraisee feels that his Appraisers' Assessment is
correct, he can Accept and forward it to his Reviewer. However, in case of any issues
regarding the assessment, the Appraisee can request for a "Discussion" with his
Appraiser. After the discussion, the Appraiser will finalize his assessment and send it
back to the Appraisee. The Appraisee at this stage can either Accept the assessment or
Reject it. In either case the plan will go to the Reviewer with the appropriate message
for his final assessment.
The Reviewer will then give his assessment on the KRAs which will form the basis for
calculation of the Consolidated Score of MAP for the individual. He will also give his
assessment on the Skills/Competencies specified in Part B.

INITIATING / REVIEWING OFFICER

Generally, the Appraisal will be written by an officer called the "Initiating Officer",
reviewed by a superior officer called the "Reviewing Officer" and accepted by the next
higher officer called the "Accepting Officer". However, in respect of the personal staff
attached to General Managers/ Heads of Departments/Directors/Chairman and Managing
Director, Initiating, Reviewing and Accepting Officer will be the same.
The Initiating / Reviewing / Accepting Officers for employees in various level of
Appraisee will be as under:

Level of Appraise

W-0 toW-10

Initiating
Officer

Reviewing
Officer

Accepting
Officer

E-1

E-2/2A

E-3

E-1

E-2/2A

E-3

E-1

E-2/2A

E-3

E-4

E-2

E-3

E-4

E-5

E-3

E-4

E-5

E-6

E-4

E-5

E-6

E-7

E-5

E-6

E-7

E-8

E-6

E-7

E-8

E-9

E-7

E-8

E-9

Director

E-8

E-9

E-9

Director

S-1 to S-4

Director
CMD

CMD
CMD

TOOLS OF PERFORMANCE APPSAISAL

The following tools are used in the PA.
1. Rating Scales.
2. Competencies and development plan.

1. RATING SCALES
Performance defined in MAP will be evaluated using 5-point Rating Scales. These Rating
Scales will be used to assess the extent of accomplishment on KRA Targets, Routine
Responsibilities and Competencies.

One common scale will be used for assessing accomplishment on KRAs and Routine
Responsibilities, while another scale will be used for assessing accomplishment on
Competencies.

Rating KRAs and Routine Responsibilities

KRAs and Routine Responsibilities have a 5-point scale where each rating has been
articulated and explained.

Rating Competencies
The 5-point Rating Scale for Competencies is different from the one used for KRAs and
Routine Responsibilities.
The Appraisee will be evaluated on all Competencies in the URR using the Competency
Scale.
Each Rating on the scale has been articulated to describe the extent to which an
Appraisee has displayed the behaviors described in the required Proficiency Level of the
Competency.
Based upon the behaviors observed, the Rating that best describes the set of displayed
behaviors is chosen as the Rating on that Competency.

2. COMPETENCIES AND DEVELOPMENT PLAN

Competencies

Competencies are skills and abilities described in terms of behaviors that are coachable,
observable, measurable and critical to individual performance skills.
Competencies form the foundation of what capabilities are required for the successful
execution of roles and responsibilities, thereby driving functional, unit and organization
performance.
Part B- SKILL/ COMPETENCY ASSESSMENT
The Objective of Part B is to assess the Skills/ Competencies possessed by individuals
and factor in this assessment for the purpose of Promotion decisions.

There are two sets of Skills/ Competencies mapped to different levels of executives as
follows:
E1A to E5

Skill/ Competency Set-1

E6 & E7

Skill/ Competency Set- 2

The weighted average score of Part-A and Part-B will give the Composite Score of the
individual for that year which will be reckoned for promotion purposes only. The
following weight ages operate between Parts-A (KRAs) and Part-B (Skills and
Competencies) while calculating the Composite Score:

LIST OF SKILLS/COMPETENCIES TO BE ASSESSED FOR

EXECUTIVES
IN GRADES E1A TO E5
(On a scale of 1 to 5 5 being the best and 1 the lowest)

SN SKILLS/ COMPETENCIES

Functional / Technical Knowledge: Possesses knowledge related to function, understands

and appropriately applies technical ability related to functional / technical expertise.

Leadership: Motivates & develops individuals. Encourages team members in decision

making.

Interpersonal Relations & Team playing: Sensitive to the needs and problems of others.
Collaborates with colleagues to seek solutions that are beneficial to the team. Supports others
contribution and helps in achievement of teams goals.

Analytical ability: Displays the ability to analyse information and draw logical conclusions.

Openness to continuous learning: Assesses and recognizes own strengths and weaknesses;
pursues self-development.

Communication: Displays skill to give and receive instructions accurately; has ability to
present issues lucidly and share information with all concerned.

Initiative & Resourcefulness: Able to act effectively / imaginatively to accomplish mission ;

takes initiative to solve problems/ improve processes.

Achievement / Result orientation: Displays zeal to achieve by aggressively and

passionately pursuing targets which have a standard of excellence.

Sense of Responsibility / Tenacity: Meets targets; shoulders responsibility; minimal followup required.

10

Quality of work: Displays thoroughness, accuracy and general excellence of output ;

produces work free from errors; shows consistency of output under varying conditions.

11

Customer Focus & Service Orientation: Displays ability to strive for success of both
internal & external customers through high responsiveness and delivering value.

12

Administrative / Executive ability: Displays ability to objectively view administrative

situations and demonstrates courage in enforcing financial and personal discipline; has ability
to appraise subordinates objectively.

S
N

SKILLS/ COMPETENCIES

Functional / Technical Knowledge: Possesses knowledge related to function, understands

and appropriately applies technical ability related to functional / technical expertise.

Leadership: Motivates & develops individuals. Encourages team members in decision

making.

Interpersonal Relations & Team playing: Sensitive to the needs and problems of others.
Collaborates with colleagues to seek solutions that are beneficial to the team. Supports
others contribution and helps in achievement of teams goals.

Analytical ability: Displays the ability to analyse information and draw logical conclusions.

Openness to continuous learning: Assesses and recognizes own strengths and weaknesses;
pursues self-development.

Communication: Displays skill to give and receive instructions accurately; has ability to
present issues lucidly and share information with all concerned.

Initiative & Resourcefulness: Able to act effectively / imaginatively to accomplish mission

; takes initiative to solve problems/ improve processes.

Achievement / Result orientation: Displays zeal to achieve by aggressively and

passionately pursuing targets which have a standard of excellence.

Sense of Responsibility / Tenacity: Meets targets; shoulders responsibility; minimal followup required.

10

Quality of work: Displays thoroughness, accuracy and general excellence of output ;

produces work free from errors; shows consistency of output under varying conditions.
11

Customer Focus & Service Orientation: Displays ability to strive for success of both
internal & external customers through high responsiveness and delivering value.

12

Administrative / Executive ability: Displays ability to objectively view administrative

situations and demonstrates courage in enforcing financial and personal discipline; has
ability to appraise subordinates objectively.

13

Decision Making & Flexibility: Displays ability to diagnose and analyse problems and
generate effective solutions by taking practical and calculated decisions; is open and flexible
when required.

14

Planning & Organising: Displays ability to plan dynamically and implement the same for
achieving desired goals.

15

Creativity & Innovation: Develops new insights into situations; encourage new ideas and
innovations; solves problems creatively.

LIST OF SKILLS/COMPETENCIES TO BE ASSESSED FOR EXECUTIVES IN

GRADES E6 &E7

SN COMPETENCIES
1

Business Environment Knowledge: Knowledge and understanding of economic, legal,

socio-political trends.

Profession Specific Knowledge: Knowledge related to profession as a whole. Knowledge

which is determined by authority & responsibility of other positions, knowledge of
mission, values and standard operating procedures, policies.

Making Business Decisions: Use business related data to sport effective and timely
business decisions by *Systematically gathering relevant business information
*Identifying the strengths and weaknesses of a particular business line *Recognizing
opportunities or threats and acting on them rapidly *Using business facts collected in daily
decision making.

Vision: Develop a vision for the future of the organization by : *Grasping the meaning of
trends & interrelationships between the organization and its environment at the local,
national and international level *Identifying fundamental values and beliefs to guide the
organization into the future.

Systematic Thinking: Identifying connections between situations that are not obviously
related *using common sense, past experience and basic rules to identify key underlying
issues *Generating and testing hunches which may explain complex situations or
problems.

Networking: To cultivate an informal network which may help to get things done through
*Developing contacts with people outside of the immediate work Unit *Using networks as
a source of information & support.

Organizing Resources: Ensure that all financial, personnel and/or other resources are in
place to meet needs by *Identifying and acquiring the resources. *Allocating and utilizing
the resources in a timely and cost effective way *Monitoring and controlling all resources
required to maintain the efficiency of operations.

Inspire People: To generate a sense of purpose for the work done by the organization
instilling enthusiasm, loyalty and commitment among team members at all levels of the
organization *Inspiring, motivating and guiding others towards organizational goals and
objectives *Setting an example for others by behaving in ways that are consistent with
espoused beliefs and values and the organizations vision and direction.

Team Player: To contribute to group objectives in a team environment through

*Cooperating and interacting well with others *Contributing actively and fully to team
projects *Working collaboratively as opposed to competitively with others
*Acknowledging diverse opinions, addressing relevant concerns and working towards
consensual solutions that enhance the output of the team.

LIST OF VALUES TO BE ASSESSED FOR EXECUTIVES IN

GRADES E1 TO E7

SN.

VALUES

Fairness: Decisions are made objectively, free from patronage and reflect the just
treatment of employees and applicants.

Transparency: There is open communication about every aspect of managerial decisions

which concern people.

Trust: Trustworthiness leading to confidence *Allow staff the freedom to grow and
develop *Relate to others on the basis of mutual respect * Courage to stand by ones
convictions.

Candour: Frank and forthright *Give and receive constructive criticism/suggestions

*openly discuss performance deficiencies and take corrective action *Appreciate good
performance *Be consistent in words and deeds *Face up to ones mistakes.

Collaboration: Working in tandem * Open in sharing information and in seeking

suggestions / opinion * Sensitive to concerns of others * Honouring commitments
*Encourage team work across departments / functions.

Involvement: Total commitment *Be dedicated and committed to work. *Build

commitment by encouraging wide participation in decision making process to the
maximum extent possible.

Flexibility: Ability to participate and adapt to changing circumstances using sound

judgment *Open to accepting new ideas * Willing to learn from anyone and to do things
differently *Prepared to operate and adapt to different environments.

Willingness to accept challenge:*Be willing to experiment*Allow for freedom to fail, but

learn from it too.

Discipline: Adherence to accepted norms *Honour promises and adhere to agreed system
*Respect for others time and space * Exercise self control.

10

Ethical Behavior: Demonstrate honesty and sincerity in every action *Apply sound
business and professional ethics *Show consistency with principles, values and behaviors.

S.N

GENERIC ATTRIBUTES

Leadership Abilities: Demonstrates ability *For guiding collective decision making *For
succession planning *Crisis management and *Ability to take risks.

Team Building: Demonstrates effectiveness in re-organizing his/her own department

*Manage diverse and divergent views and group processes without losing sight of
objectives.

Ability to build a strategic Vision: *Demonstrates ability to manage change *Focus on

long term issues *strategic thinking *Translate vision into goals.

Business Sense: *Commitment to bottom line results by enhancing revenue generation by

addressing interest of customers and stakeholders *Balancing need for viable short and
long term performance *Optimizing unit/organizations contribution while supporting
corporate objectives *Spotting and pursuing new business opportunities wherever possible.

Communication skills : Communicate ideas and information effectively and market key
points effectively through public speaking and presentation * Ability to convert ideas
through action plans and ensure acceptability within the organization and performance at
Board meetings

RESEARCH

METHODOLOGY
The
research
in my

design
case was exploratory research

is also known
Research Design.

The

The research
considering

design,
which
Formulate

main purpose of my study was

getting the opinion of
people regarding the
performance
appraisal
system and what are the problems
which are faced by the appraises and the
appraisers.
design in my study was flexible to provide opportunities for
different aspects of the problem under study.

TYPES OF DATA COLLECTED:

PT
RY
IP
ME
AS
RO
YF
D
DA
AT
TA
AC
O
L
L
E
C
T
E
D

PRIMARY:First hand information was received from the employees through

questionnaires and personal interviews.
SECONDARY: The data from internet was collected to get a better insight and the
companys manual.
SIMPLE RANDOM SAMPLING:
Simple random sampling refers to the sampling technique in which each and every item
of the population is given equal chance of being included in the sample.
Random sampling is sometimes referred to as REPRESENTATIVE SAMPLING. If the
sample is chosen at random and if the sample is sufficiently large, it will represent all
groups in the population. A random sample is also known as PROBABILITY SAMPLE
because every item of the population has equal opportunity of being selected in the
sample.

Sample size:
The sample size of my project is 10.

Q1- How long have you been with NHPC Ltd.? (in Year)
a)
b)
c)
d)

Below 2
2-5
5-10
10 and above

nhpc
100
80
60
40
20
0
Below 2

2 to 5

5 to 10

10 & above

Interpretation: most of the employees work in NHPC Ltd. More than 10

years.

Q2 .In your opinion performance appraisal is?

a) Evaluations of Employees
b) Promotion of Employees
c) Motivation

opinion
90
80
70
90%
60
50
40
30
20
10
0

10

Interpretation: 90% of employees opinion that performance appraisal is

Evaluations of Employees and 10% think that it is motivation.

Q.3 Are you aware of the performance appraisal technique being

followed at Nhpc Ltd?
a) Yes

b) No

Interpretation: In NHPC all employees are aware about the performance

appraisal technique.

Q4- What is your opinion as to the present appraisal system?

a) Fully satisfied
b) Satisfied
c) Cant say

 Fully satisfied
Satisfied
Cant say

Interpretation: 30% employees fully satisfied with present appraisal

system, 60% are satisfied with this system and 10% employees
cant say anything about PA system.

Q5-What is your perception as to the frequency of appraisal?

a)
b)
c)
d)

Once during the service period

Continuous
Never
Cant Say

0% Once during
the service period
80% Continuous
0% Never
20% Cant Say

Interpretation: 80% employees perception as to the frequency of

appraisal is continuous and 20% employees cant say anything about

it.

Q6-If continuous appraisal what should be the gap between two

appraisal period?
a) Quarterly
b) Half Yearly
c) Yearly

10% Quarterly
30% Half Yearly
60% Yearly

Interpretation: 60% employees want the performance appraisal period

should be yearly and 30% want half yearly.

Q7-Do you think that performance of employees improve after the

process of performance appraisal?
a) Yes
b) No

100
90
80
70
60
50
40
30
20
10
0
yes

no

All employees think that performance of employees

improves after the process of performance appraisal.
Interpretation:

Q8- Performance appraisal helps the organization in achieving goal?

a) Yes
b) No

Interpretation: 90% of the employees think that Performance appraisal

helps the organization in achieving goal and 10% think that

Performance appraisal not helps the organization in achieving
goal.

Q9-Do you think personal bias creeps in while appraising an individual?

a) Yes

b) No

70
60
50
40
30
20
10
0
70%yes

30%no

Interpretation: 70% of employees think that personal bias creeps in while

appraising an individual and 30% not agree.

Q10-Are you satisfied with the present performance appraisal system?

(a) Yes [

(b) No [

If No than why ..

100
90
80
70
60
50
40
30
20
10
0
90%yes

10%no

Interpretation: In NHPC 90% of employees satisfied with the present

performance appraisal system & 10% of employees not satisfied .

Q11- Do you think that present system is effective / better than the previous appraisal system?
(a) Yes [

(b) No [

100
90
80
70
60
50
40
30
20
10
0
100%yes

0%no

Interpretation: 100% of employees think that present system is

effective / better than the previous appraisal system.

Q12- Do you get any formal feedback regarding your performance?

(a) Yes [

(b) No [

80
70
60
50
40
30
20
10
0
80%yes

20%no

Interpretation: 80% employees say that they not receive any formal

feedback regarding your performance and 20% employees say that

they receive formal feedback.

Q13- Are any steps taken to improve the performance if not up to the mark?

(a) Yes [

(b) No [

90
80
70
60
50
40
30
20
10
0
90%yes

10%no

Interpretation: 90% employees said that steps are taken to improve the

performance.

LIMITATIONS
Little co-operations of
mind.

some person due to conservative

Some people have no time to give answer.

Sometimes people do not tell truth and fill it just for fun sake.

CONCLUSION

From the research it has been concluded that most of the executives who are not satisfied with
the present performance appraisal system.
Appraisers give proper feedback to their appraises on day today basis and proper training or
challenging tasks are given to improve their performance. mainly the formal training is given at
the time of joining the organization but if the employees face any problem later at the time of
their job, their superiors help them in resolving their problems at the same time.
But some appraises feel that they are not given proper feedback and even they dont want any
feedback as they think that they know their work very well.

SUGGESTIONS
Problem face by appraiser

Allocating time

proper.

Lack of feedback.
Lack of effectiveness metrics
for appraisal.
Assessment techniques should be

Suggestion as

an appraisee

No

involves.

Online
submission.
Frequent feedback by appraiser.
Proper communication.
Suggestion

as an appraiser

Zero biasness.
Training
for
appraiser.
Providing
performance
feedback.
Assessment as per output only.

personal
bias

QUESTIONNAIRE

Q1- How long have you been with NHPC Ltd.? (in Year)
e)
f)
g)
h)

Below 2
2-5
5-10
10 and above

Q2 .In your opinion performance appraisal is?

d) Evaluations of Employees
e) Promotion of Employees
f) Motivation
Q.3 Are you aware of the performance appraisal technique being
followed at Nhpc Ltd?
b) Yes

b) No

Q4- What is your opinion as to the present appraisal system?

d)
e)
f)
g)

Fully satisfied
Satisfied
Cant say
Dissatisfied

Q5-What is your perception as to the frequency of appraisal?

e)
f)
g)
h)

Once during the service period

Continuous
Never
Cant Say

Q6-If continuous appraisal what should be the gap between two

appraisal period?
d) Quarterly
e) Half Yearly
f) Yearly
Q7-Do you think that performance of employees improve after the
process of performance appraisal?
c) Yes
d) No

Q8- Performance appraisal helps the organization in achieving goal?

c) Yes
d) No
Q9-Do you think personal bias creeps in while appraising an individual?
a) Yes

b) No

Q10-Are you satisfied with the present performance appraisal system?

(a) Yes [

(b) No [

If No than why ..
Q11- Do you think the present system is effective / better than the previous appraisal system?
(a) Yes [

(b) No [

Q12- Do you get any formal feedback regarding your performance?

(a) Yes [

(b) No [

Q13- Are any steps taken to improve the performance if not up to the mark?

(a) Yes [

(b) No [

REFRENCE & BIBLIOGRAPHY

COMPANYS MANUALS
http://www.performance-appraisal.com
http://performance appraisal.org/experts/perffeedback.htm
www.nhpc.nic.in
www.nhpcindia.co.in
www.nhpc.com
www.hrclub.nic