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Project Report

A STUDY ON
Performance Management System in OCL India
Limited, Rajgangpur

(Submitted For the Partial Fulfillment of the Requirement for the Degree
of Master in Business Administration)

Biju Patnaik University of Technology,


Orissa.

DECLARATION

I, ------------------ bearing Registration Number: 78787890057, a student of MBA VI


Trimester of xyz (HR), under BIJU PATNAIK UNIVERSITY OF TECHNOLOGY,
Rourkela, Orissa, (2009-2011) do hereby declare that the Dissertation Project
Report entitled A STUDY ON PERFORMANCE MANAGEMENT SYSTEM in
OCL INDIA LIMITED, RAJGANGPUR, is a bonafide record, this work is done by me in
partial fulfillment of requirements for the award of the degree of Master Of Business
Administration.
I hereby declare that this original report has not been submitted in the full or part there of for
the award of any degree/diploma to any other university/Institution.

PLACE: abcdef

xyzabc

Internal Guide Certificate

This is to certify that the project work entitled A STUDY ON PERFORMANCE


MANAGEMENT SYSTEM in OCL INDIA LIMITED, RAJGANGPUR has been
carried out under my guidance by xyz in partial fulfillment of her Master of Business
Administration during the academic years 2008-2010. It is not submitted to any
Organization/Company other than OCL India Limited, Rajgangpur.This project report has
been completed to the sole aim of the partial fulfillment of MBA degree.

Date:

Prof. S K Ghose

ACKNOWLEDGEMENT

I would like to take this opportunity to express my deep gratitude to all those who came out
of their way to help me during the course of the project. I am extremely thankful to Mr. N.N
Sasmal (DGM, HRD), of OCL India Ltd for giving me permission for doing my Dissertation
Project at OCL & his helping hand in completing my project.
My sincere thanks to Mr.Satyajit Rath (Personnel.HR Manager, OCL) and my faculty
members without whose guidance it would have been impossible to complete my project on
Performance Management System in OCL India Ltd, Rajgangpur.
I would also like to thank Prof. S K Ghose (Human Resource,) for his kind co-operation and
help in my project.
I am very thankful to my parents and friends who have helped me a lot in collecting the
necessary information. Their loving and caring words of praise have really encouraged me.

Xyzadbnfgmh,khj,ljh

TABLE OF CONTENT
Page no.
Preface

6-7

Orgnization.Structure

8-9

Introduction to topic

10-16

Literature review

17-19

Scope of the study

20

Objective of study

20

Limitation of the study

20-21

Research Methodology

21

Secondary Data analysis

22-30

Primary Data analysis

31-39

Findings

40-41

Suggestion

42-43

Conclusion

44

Bibliography

45

References

45

Questionnaire

46-47

Annexure

48-60

PREFACE

The Project is about the Performance Management System carried out in OCL India
Limited, a public limited company registered under companys act 1956 and situated
in the district of Sundargarh, Orissa State. The objective was to study in details the
system of Performance Management in OCL India Limited, Rajgangpur. In Order to
achieve the goals or perform the activities of an organization, it is needed to evaluate
the performance of employees in a systematic way.

OCL INDIA LIMITED better known as "OCL was established in the year 1949,
under the brand name of "Konark". OCL has 2 profit centers- Cement, Refractory.

The performance Management System helps in evaluate the employees performance


and identify training needs. It also helps in achieving organizational growth.

The System shall focus on team as well as individual performance including growth
of individual.

Its main objective is to encourage employees and bridge critical skill gap.

PMS should be simple and easy to understand.

There are 14 steps in PMS .They are - Annual business plan, Divisional objective
,Departmental Objective ,Team Objective ,Team action plan ,Team Expectation ,MIS
Requirement, Individual objective, Review of team objective, Review of individual
objective, Performance assessment, qualitative assessment, Training & Development
needs, Training effectiveness review.

Annual business plan is finalized in the beginning of the year. After that, divisional
objective is finalized from the annual business plan. Divisional objective is divided
into two objectives- strategic & non-strategic. Then each department shall finalize &

submit a copy of its departments objective by February every year. After fixing of
divisional & team objective, the team members discuss how to achieve the objectives.
The team members also identify their expectations /support required from the
management. They can also get support from the CIT department if they need any
data.

After finalization of objectives monthly team, departmental and


divisional review meetings are conducted, these meetings are
conducted once in a month, in these meetings the head reviews each
objective for achievements and reasons for failures, if any, during the
previous month and finalize the corrective measures / future action
plans.

Team and individual performance assessment is done. Mainly three methods are
implemented at OCL these are ABC analysis, 360 degree feedback, and Qualitative
assessment.

ABC analysis is done for individual assessment once in a year during March. HOS
/HOS has to recommend performance categorization i.e.,
o A = above expectation
o B = Marching expectation
o C = below expectation
o After that the above assessment is done the filled-in formats will be send to the
chairman of the concerned committee, which is consist of 3-4 members.

360 degree feedback appraisal done twice a year goes a long way of bringing
improvement in behavior pattern of executives. In this method the feedback is taken
from the superior, colleagues and subordinates preferably in the ratio of 1: 4: 5.

Qualitative assessment is done once in a year for the individual covered under
performance management system and are rated under A .The individual are
assessed by his superior and HOD or divisional head. After the evaluation, the
appraiser will identify the training and development needs for each one of his
subordinates, and training is provided to those who lacks in certain areas.

ORGANISATION STRUCTURE IN OCL


Board of Directors/ Whole time directors (level-1)
Executive Directors/ Asst. Executive directors (level-2)

General Manager/ Sr. General Manager (level-3)

Deputy General Manager/ Asst. General Manager (level-4)

Chief Manager/ Deputy Chief Manager (level-5)

Senior Manager/ Manager (level-6)

Deputy Manager (level-7)

Executive Engineers/ Personal Officers/ Asst. manager (level-8)

MBA (marketing) Deputy Marketing Officers (level-9)

Diploma Engineers/ Jr. Engineers (level-10)


BSc. Hons- Deputy Functional Executives (level-11)

BSc. (pass) Asst. Functional Executives (level-12)

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PERFORMANCE MANAGEMENT SYSTEM


Performance management system (PMS) is the heart of any people management " process in
organization. Organizations exist to perform. If people do not perform organizations don't
survive. If people perform at their peak level organization can compete and create waves.
Performance management systems if properly designed and implemented can change the
course of growth and pace of impact of organizations. In the past organizations as well as the
HR function have wasted a lot of time by wrongly focusing on performance appraisals rather
than performance management. Setting goals, preparing performance plans, conducting
reviews, tracking behaviors, gathering data, and writing evaluations are all activities of a
performance management system that requires time, commitment and skills.Performance
management begins when a job is defined. Performance management ends when an employee
leaves the company.
You can encourage managers and supervisors to take responsibility for managing
performance in their work area and cooperating for performance improvement across the
organization.
You can promote the understanding that even if one individuals work area, shift, or
department is successful, this will not result in a well-served customer. Because all
components of your organization are part of a system that creates value for your customer,
all components must be successful.
So, too, in your performance management system, all components must be present and
working to create value for each employee and the organization. Organizations succeed when
they continuously nourish the top performers and improve (or weed out) the poor performers.
The big challenges of following this strategy are identifying the real performers, provide a
competitive compensation to retain & motivate them and improve employee skills &
competencies to maintain the business competitiveness.
The evaluation of the performance of employees is a key part of the function of the
organization. The Performance management is a process used to measure, improve &
reward the performance of employees.
Performance Management is a means of getting better results from the organization, teams
and individuals within an agreed framework of planned goals, objectives and standards.
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It is a systematic approach to improving individual and team performance in order to


achieve organizational goals.
Performance Management is a process for establishing shared understanding about what
is to be achieved and an approach to managing and developing people in a way which
increases the probability that it will be achieved in the short and longer term.
Performance management system is a broader concept approach to manage the
performance of organization.
The system helps in achieving organizational growth and employee development by
providing relevance of organizational goals and objectives to all departments, teams and
individuals.
The PMS also helps in creating desired culture and values in the organization in the line
with organizations Vision and Mission.
AIMS OF PMS:
-

It helps to achieve sustainable improvement in organizational performance.

Increase the motivation & commitment of employees.

Enable individuals to develop their abilities, increase their job satisfaction & achieve
their full potential to their own benefit & that of the organization as a whole.

Enhance the development of team cohesion & performance.

Provide opportunities for individual to express their aspiration & expectations about
their work.

BENEFITS OF PMS

Improve performance of the employees.

Motivate employees

Provide continuous improvement & development

Improve team and individual performance

Encouragement & support to perform well

Guidance & help in developing abilities & performance

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Help to retain skilled employees

Now the company is following balance score card system in measuring performance of
individual, team, and department. So lets see what balance score card is.
Balance scorecard basics
The balance scorecard is a strategic planning and management system that is used
extensively in business and industry, government, and nonprofit organizations worldwide
to align business activities to the vision and strategy of the organization,
Improve internal and external communications, and monitor organization performance
against strategic goals .It was originated by Drs. Robert Kaplan (Harvard Business
School) and David Norton as a performance measurement framework that added strategic
non financial performance measures to traditional financial metrics to give managers and
executives a more balanced view of organizational performance. While the phrase
balance scorecard was coined in the early 1990s, the roots of the this type of approach are
deep, and include the pioneering work of General Electric on performance measurement
reporting in the 1950s and the work of French process engineers (who created the Tableau
de Board-literally, a dashboard of performance measures) in the early part of the 20 th
century.
The balance scorecard has evolved from its early use as a simple performance
measurement framework to a full strategic planning and management system. The new
balanced scorecard transforms an organizations strategic plan from an attractive but
passive document into the matching orders for the organization on a daily basis. It
provides a framework that not only provides performance measurements, but helps
planners identify what should be done and measured .it enables executives to truly
execute their strategies.
This new approach to strategic management was first detailed in a series of articles and
books by Drs. Kaplan and Norton. Recognizing some of the weaknesses and vagueness of
previous management approaches, the balanced scorecard approach provides a clear
prescription as to what companies should measure in order to balance the financial
perspective . The balanced scorecard is a management system (not only a measurement
system) that enables organizations to clarify their vision and strategy to translate them

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into action .It provides feedback around both the internal business processes and external
outcomes in order to continuously improve strategic performance and results. When fully
deployed, the balance scorecard transforms strategic planning from an academic exercise
into the nerve center of an enterprise.

Perspectives
The balanced scorecard suggests that we view the organization from four perspectives, and to
develop metrics, collect data and analyze it relative to each of these perspectives:
The learning and growth perspective
This perspective includes employee training and corporate cultural attitudes related to both
individual and corporate self improvement. In a knowledge worker organization, people the
only repository of knowledge are the main resource. In a current climate of rapid
technological change, it is becoming necessary for knowledge workers to be in a continuous
learning mode. Metrics can be put into place to guide managers in focusing training funds
where they can help the most. Any case, learning and growth constitute the essential
foundation for success of any knowledge-worker organization.
Kaplan and Norton emphasize that learning is more than training; it also includes things like
mentors and tutors within the organization, as well as that ease of communication among
workers that allows them to readily get help on a problem when it is needed. It also includes
technological tools; what the baldrige criteria call high performance work systems.
The business process perspective
This perspective refers to internal business processes. Metrics based on this perspective allow
the managers to know how well their business is running, and whether its products and
services conform to customer requirements (the mission). These metrics have to be carefully
designed by those who know these processes most intimately; with our unique missions these
are not something that can be developed by outside consultants.

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The customer perspective


Recent management philosophy has shown an increasing realization of the importance of
customer focus and customer satisfaction in any business. These are leading indicators: if
customers are not satisfied, they will eventually find other suppliers that will meet their
needs. Poor performance from these perspectives is thus a leading indicator of future decline,
even though the current financial picture may look good.
In developing metrics for satisfaction, customers should be analyzed in terms of kinds of
customers and the kinds of processes for which we are providing a product or service to those
customer groups.
The financial perspective
Kaplan and Norton do not disregard the traditional need for financial data. Timely and
accurate funding data will always be a priority, and managers will do whatever necessary to
provide it. In fact, often there is more than enough handling and processing of financial data.
With a implementation of a corporate database, it is hoped that more of the processing can be
centralized and automated. But the point is that the current emphasis on financials leads to the
unbalanced situation with regard o other perspectives. There is perhaps a need to include
additional financial related data, such as risk assessment and cost- benefit data, in this
category.
Objectives of implementing balanced scorecard
Increase focus on strategy and results
Improve organizational performance by measuring what matters
Align organization strategy with the work people do on a day to day basis
Focus on the drivers of future performance
Improve communication of the organizations vision an strategy
Prioritize projects/ initiatives

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Vision
&
Strategy

16

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LITERATURE REVIEW
The following books have been reviewed to gain an insight of performance management
system and processesAsvathapa k, Human Resource & Personnel Management, Tata McGraw-Hill,2006
Performance management may be understood as a process that enables an MNC to evaluate
and facilitate continuous improvement of individuals, subsidiary units and corporate
performance against clearly defined, pre-set goals and targets.
Deepak Bhattacharya, Human Resource Management, Second Edition, Excel Books,
New Delhi 2006
Performance management is the integrated process of objective setting, appraisal and pay
determination which supports the achievement of the companys business strategies. It is an
ongoing communication process that involves both the manager and the employee in. The
evolution of the concept of performance management as a new human resource management
model reflects a change of emphasis in organization away from command and control
towards a facilitation model of leadership.
R.K Sahu , Performance Management System, New Delhi, Excel Books
Performance management is based on simple proposition that when people know and
understood what is expected of them and have been able to take part in forming those
expectations, they can and will perform to meet them.
Dinesh K Shrivastava, Strategies for Performance Management, Excel Books
Performance management refers to a comprehensive scientific approach to ensure link
between efforts of individual employees with vision and goals of the organization, to achieve
excellence in organization on one side and satisfaction growth of employees on other side.
Performance management is more a philosophy than a set of policies and tools.
VSP.Rao, Human Resource Management, Second Edition, New Delhi
VSP.Rao has focused on performance appraisal which is part of performance management.
According to him, performance appraisal refers to how well someone is doing an assigned
job. Performance appraisal is not past oriented activity rather it is future oriented activity
showing employees where things have gone wrong, how to set everything in order and
deliver results using their potential in a proper way.

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Louis R. Gomez , David B.Balkin, Robert L.Cardy, Managing Human Resources,4th Edition
According to Louis, performance appraisal is the identification, measurement and
management of human performance in organization.

Michael Armstrong & Angela Baron , Performance management, Jaico Publishing


house,2006
Performance management is a strategy which relates to every activity of the organization set
in the context of its human resources policies, culture, style & communication systems. The
nature of the strategy depends on the organization context and can vary from organization to
organization. It communicates a vision of its objectives to all its employees. It conducts a
formal review of progress towards the targets and uses the review progress to identify
training, development and reward outcomes.
Prem Chandha
Performance management is about performing- not just appraising. It is a way of envisioning
the totality of managers function. It view the managerial function holistically- not a random
collection of activities that most managers recognize and undertake as their core function. It
is way of systematically managing all people for innovation, goal focus, productivity &
satisfaction. It is goal congruent win-win plan.
Srinivas R Kandula
Performance management is process of designing and executing motivational strategies
interventions and drivers with an objective to transform the raw potential of human resource
into performance. Performance appraisal is singular activity that is employed to assess the
performance of employees for predetermined duration on a set of parameters. As opposed
performance management is an integrated activity that aims to nurture and institutionalize as
a fundamental system of organization.

C.B Memoria & S.V Gankar , Personnel Management, Himalaya Publishing House
They have mentioned about performance appraisal which is part of performance
management. Performance appraisal is the step where the management finds out how
effective it has been at hiring and placing employees. If any problem is identified steps are
taken to communicate with the employee and to remedy them.

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THE STUDY
SCOPE OF THE STUDY
The study is about the Performance Management System in OCL, which is a part of HR
subsystem at OCL. The study is mainly based on the details collected from HR department of
the company. The activities carried out in the system were studied carefully.

OBJECTIVE OF THE STUDY


To get birds eye view of the performance management system in OCL India
Limited, Rajgangpur
To get in-depth knowledge regarding intricacies of performance management system
in OCL India Limited, Rajgangpur
To know the performance management system of OCL INDIA LIMITED
To study the performance of various department.
To know the process used in OCL to evaluate the employees

LIMITATION OF THE STUDY


It is obvious, like any research work the study will have some limitations. The likely
limitations are the management may not supply all the required information. On the plea of
the management workers may be hesitant to express their personal opinion retrenching their
attitude towards various management practices.
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The following are some of the limitations faced while collecting information for conducting
the study in O.C.L.
The limited time span for conducting an extensive study on the topic.
Another problem was that most of the executives as well as workers were busy with
their normal work. So they could not give much of their time.
The company being a big concern & having huge records and data it was very
difficult to go through all of them in full detail.

RESEARCH METHODOLOGY
The methodology adopted in the study includes both Qualitative technique and Quantitative
technique.

METHODS OF DATA COLLECTION


The data collection constitutes both primary & secondary data.

Primary Data
The data were collected by distributing questionnaire to the authorities and staffs & by
observation.

Secondary Data

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Secondary data were collected from various records kept in departments, company website,
Magazines & manuals.

SECONDARY DATA ANALYSIS


PERFORMANCE MANAGEMENT SYSTEM IN OCL INDIALTD.:-

INTRODUCTION
The performance management system shall help to achieve organizational growth &
employee development by providing relevance of organizational goals & objective to all
department, teams & individuals.
Performance management system also helps in creating desired culture and values in the
organization in line with the organizations vision & mission.
POLICY:1) The system shall focus on team performance as well as individual performance
including growth of individuals.
2) The Annual Business Plan shall be deployed to finalize Divisional, Departmental, and
Team objectives.
3) The Team objectives and Individual objectives will be integrated with Divisional
objectives.
4) The appraisal system shall provide inputs to other HR subsystems including reward
and recognition.
5) The immediate superior will be responsible for the effective implementation of the
system for their subordinate.
6) The responsibility for reviewing the effectiveness of the appraisal system and its
implementation shall lie with the respective divisional heads.
7) The appraisal system shall be applicable to all executives up to level-1 in stages.
8) The performance assessment shall cover the period from April to March. So as to
complete the assessment process by April.

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9) The system shall be reviewed at least once in three years by the Corporate Steering
Council.

OBJECTIVES:1)

Encourage employee development and bridge critical gaps.

2)

Achieve organizational objectives.

3)

Focus on team performance.

4)

To provide inputs to performance linked rewards, increments, training and


development, career and succession planning, etc.

GUIDELINES:The appraisal system shall be:


1) Simple.
2)

Easy to administer.

3)

Easy to understand consistently by all people.

4)

Transparent to appropriate extent.

APPRAISAL PROCESS IN OCL INDIA LIMITED:1) Annual Business Plan


2) Divisional objectives
3) Departmental Objectives
4) Team Objectives
i)

Team Action Plan

ii)

Team Expectations

5) Individual Objectives
6) Review of Team Objectives.
7) Review of Individual Objectives.
8) Performance Assessment.
9) Qualitative Assessment.
10) Training & Development Need.
11) Training Effectiveness Review.

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1) Annual Business Plan


The annual business plan for the organization shall be finalized in the beginning of
January every year.
2) Divisional Objectives:The divisional objectives will be drawn and finalized from the Annual Business Plan for
the financial year April-March by January every year as per format HRD/PER/01. This is
again categorized into
i) Strategic Objectives
ii) Non- Strategic Objectives.
3) Departmental Objectives:The divisional objectives so finalized shall be deployed to various departments in the
division. Each department shall finalize and submit a copy of its departmental objectives
by February 28th of every year as per format HRD/PER/02.
4) Team Objectives:Finally the departmental objectives shall be further deployed to various teams within the
department. In smaller department where only one team is there, the departmental
objectives shall become the team objectives.
The teams in service / common departments will prioritize and finalize their strategic
objectives out of their various outputs recorded as per format. While including any
activity in the above strategic objectives, there should be a marked improvement.

5) Team Action Plans:After finalization of the team objectives, the team members will brainstorm on how to
achieve the objectives and will finalize the major ACTION PLANS for each objective.

6) Team Expectation:-

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After finalization of Action Plans with targets, the team members also identify their
expectations / support required from the management and other customer and supplier
teams in order to carry out the action plans effectively. The objective / action plan may
need to be modified according to the extent of agreement reached with the management /
concerned teams.
7) MIS Requirement:The requirements of various MIS are identified, which will facilitate the monthly review
of the objectives of the objectives and action plans.

8) Individual Objectives:Each employee will have individual objectives in following two areas:
i)

Individual Improvement Objectives.

ii)

Subordinate Development Objectives

i. Individual Improvement Objectives:The individuals will identify options in potential areas related to existing as well as new
jobs for improvement as per format HRD/PER/04 and then will select, after prioritizing
the options considering its impact and own control over the activity, 2-3 improvement
objectives in consultation with their superiors. The finalized objectives will be recorded
and a copy of the same has to be submitted with HRD by 30th March of every year.
ii. Subordinate development Objectives:The individuals, after identifying the subordinates, the purpose of each subordinates
development and the existing gap in his knowledge and skills required to meet the
purpose, will shortlist the areas of development for each such subordinates where they
will be able to contribute personally . The details will be recorded as per format
HRD/PER/04.

9) Review of Team Objectives:i. Monthly Team Review Meetings:-

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The team leader and members will review each objective for its achievements and reasons
for failures, if any, during the previous month and finalize the corrective measures / future
action plans for the current month, at least two days prior to the Monthly Departmental
Review Meeting every month. Each team leader will submit details of the monthly
reviews as per format HRD/PER/03 to the Departmental Head.
The minutes of each meeting will be maintained, which will be reviewed in subsequent
month.
ii. Monthly Departmental Review Meetings:The Departmental Head will review every month the performance of the various teams
under his control either separately with each team or in a group of team leaders as
convenient to him. The departmental review meetings will be held at least two days prior
to the Divisional Review Meeting.
iii. Monthly Divisional Review Meetings:The Divisional / Unit head will call the review meeting on a fixed date as early as
possible after the month is over but not later than 20 th of next month to review the
Divisions objective, achievements and failures during the previous month.
The departmental Heads and Team Leaders, if necessary will make a presentation within
a permissible time about his departments / teams major achievements, failures, future
action plans, and expectations from management / other departments / teams, either the
old ones not being met or any new ones. They may also suggest downward revision, if
any, in team objectives.
In case the reviewing authority is not convinced about the practicability / appropriateness
of any action plan, the department / team can be asked to do more detailed analysis and to
present their action plans within a limited time frame. The same is applicable for future
targets being proposed. This also needs to be supported by data.
Any decision required from top management in respect to any action plans, e.g.
investment, capital sanctions, etc, needs to be approved prior to the Review Meeting.
After the presentation by the Departmental heads, the divisions objectives will be
reviewed. The chairman will share the achievements and failures, and finalize future
action plans to improve the future performance.
10) Review of Individual Objectives:Individuals improvement objectives and subordinates development objectives will be
reviewed by concerned individuals superior (Appraiser) every six months formally and
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every month informally to ensure compliance of the action plans and the improvement
trend. The appropriate records of the issues raised and finalized action plans during the
review will also be noted down by the appraise, which will be reviewed in the subsequent
reviews.

11) Performance Assessment:i. Team Performance Assessment:The performance of each team will be assessed annually during March every year. The
format HRD/PER/05/1 and 05/2 will be sent by HRD to each team leader by 15 th of
March. The team leader will fill in the above formats appropriately and submit by 5 th
April to HOD / Divisional Head, as may be, who will modify the performance rating
percentage up to +/-

10 points flat, after giving due consideration to the EFFORTS

MADE and prevailing HELPING/HINDERING FACTORS. HOD/Divisional Head will


further modify up to +/- 5 points flat giving due consideration to contributions made
through NON-STRATEGIC OBJECTIVES and +/- 5 points flat for the quality of the
execution of ROUTINE ACTIVITIES, to arrive at final performance rating percentage.
Each Division will constitute a divisional committee comprising of 3-5 members under
the chairmanship of the concerned Divisional Head. The Divisional Head may include
Head of HRD, if necessary. This committee will assess the performance of each team and
categorize the teams under A, B, C after giving due consideration to the job content,
quality of job executed and results achieved under helping / hindering factors.
The ratio for distribution of Performance reward is allocated as 50: 40: 10 (i.e. for Team,
Individual and Performance in the TQM Activities).
ii) Assessment of Individual Objectives:The assessment of individual objectives will be done in the month of September and
March every year. The superior (Appraiser) shall arrange for the meeting with each of his
subordinate employees (Appraisee) to complete the process by 15 th of the month and send
the format HRD/PER/06/1 & 06/2 after mentioning his comments in appropriate columns
to HRD by October 15th and to HOS/HOD/Divisional Head, as advised by HRD, during
the April review.
The above two format will be sent by September 25th and March 15th to each appraisers
who in turn will hand over the formats to respective individuals under his control for
filling in the data and details before, coming to attend the assessment meeting called by
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his Appraiser. The overall individual performance assessment will be done once during
March every year. First, it will be done by the concerned HOS/HOD/Divisional Head, as
the case may be, to recommend the categorization of the individual under A, B, or C,
giving due consideration to the available scope of improvement, extent of targets
stretchiness and extent of achievement under helping/hindering factors.
A TQM activity has been incorporated as a part of Individual and Achievement and
accordingly every HOS/HOD has to review and assess the achievements during
September and March every year. At the end of the year i.e. during the month of March
while finally assessing the performance of Individual Objectives for each Individual the
HOS/HOD has to recommend performance categorization i.e.,
A = Above Expectation
B = Marching Expectation
C= Below Expectation
After the above assessment is done the filled-in formats will be sent to the Chairman of
the concerned committee formed by the Divisional Head for individual assessment. Each
committee will comprise of 3-4 members who will be nominated taking care that each
member must be from at least two levels higher compared to the individuals whose
assessments have been assigned to the committee. The divisional head will constitute one
or more committees to assess the individuals at different levels in order to reduce the
workload of the committees. The committee will do the overall assessment and categorize
the individuals in A, B, or C giving due consideration for the point mentioned above
in case of 1st stage assessment. In case the category finalized by the committee is different
from that recommended by HOS/HOD/Divisional Head, the appropriate comments will
be mentioned by the committee.
iii) Moderation of Team and Individual Assessment:The top management committee comprising of Presidents and Unit/Divisional Head
shall be authorized to review and moderate the assessment results in order to maintain
the parity amongst the divisions.

12) Qualitative Assessment:It shall be done once every year during June for each individual, covered under the
Performance Management system and are rated A in their Individual Objectives and

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Achievements for the immediate preceding financial year by his superior and
subsequently by his HOS/HOD/Divisional Head, as the case may be.
HRD will send the format HRD/PER/15 for each covered individual to his specified
superior (appraiser) by 10th of June every year.
The appraiser and HOS/HOD/Divisional Head will assess the concerned individual and
give appropriate rating against each competency as per given in the format. They are as
follows:
-Customer Orientation.
-Achievement Orientation.
-People Leadership.
-Subordinate Development.
-Excellence/Quality.
-Change Leadership.
-Cost Consciousness.
-Strategic Mindset.

13) Training and Development Needs:The appraiser will have the following opportunities to identify the training and
development needs for each one of his subordinates.
- While finalization of the Team Action Plans, Individual Improvement Objectives and
subordinate development objectives.
- During review of results of subordinates Team and Individual objectives.
- During Annual Qualitative Assessment of subordinates.
Based on the assessment during above opportunities, the appraiser will fill in the format
HRD/PER/09 for each of his subordinates in consultation with him. The need will be
mentioned in terms of Course/Programme Title its order of priority and the period by
which the training needed to be imparted during the next calendar year.
The columns under course code and level would be filled in HRD. The appraiser
would receive the above format by September 30th every year from HRD and would
forward the filled in format by 15th October to HOS/HOD, for his comments.

29

The

Concerned

HOS/HOD

will

mention

his

comments

indicating

his

agreement/disagreement or changes to be made related to training needs and send the


format to HRD by 30th October.

14) Training Effectiveness Review:After each training programme HRD Department gets the format HRD/TR/01 by the
participants and endorses a copy of the same to the individual concerned for his record.
The original format is sent to the HOD for his evaluation of the effectiveness of the
training after six month from the date of imparting training. The HOD is required to
return to the format to HRD after six months with his comments in the space provided
there in.

30

PRIMARY DATA ANALYSIS


Q1. Is Performance appraisal necessary in the organization?

Q2. Whether the good Performance awarded in the organization is on basis of competence?

31

Q3. Does Performance management system help to know the strength and weakness of an
employee?

Q4. Does Performance appraisal help in improving your present performance?

32

Q5. Does performance appraisal system help in keeping good relation with your boss?

Q6. Does Performance management system help to identify the Training and Development
needs?

33

Q7. Are you satisfied with the overall culture of the organization?

Q8.Is Performance Management System effective?

34

Q9. Are you given much freedom to improve in your area of operation?

Q10. Do you think Performance management system (PMS) should be transparent or not?

35

Q11. Are there any recreational facilities for the employees?

Q12. Do you think Performance management system motivates to participate in selfdevelopment activities?

36

Q13.Does Performance management system identify your inefficiencies and new skills
required in the year ahead?

Q14. Do you think company has performance related pay?

37

Q15.Does your manager work as mentor to develop you?

Q16. Does Performance management system motivate you to change your behaviors?

38

Q17. Does Performance management system motivate you to do your job?

39

FINDINGS:
During the course of study, it was come to know the various unique techniques,
procedures and methodology applied at OCL.

During the survey it was found that 80% employees are agreed that, the performance
management system helps to know the strength & weakness of an employee. At the same
time 20%employees are not agreed to that. So according to majority it is clear that
Performance management system is implemented to know the strength & weakness of an
employee, so that their development can be done.

Both external & internal training is imparted in OCL and employees are satisfied by the
training provided. By the training the employees get a chance to enhance their skills &
knowledge.

360degree appraisal is implemented in the OCL, which is an important method .In this
method the feedback are collected from superior, sub ordinates and peers.

Performance processes are used by managers and team leaders to help people feel that
they are valued by the organization.

93% of the employees think that Performance management system is necessary in the
organization and rest 7% are not in favor.

80% of employees say that good performance is awarded on the basis of competence and
20% are against it.

87% of employees agree that Performance management system helps to find out strengths
and weaknesses.

73% of employees say that Performance appraisal helps in improving your present
performance but rest say it is not helpful to them.

40

40% agree that performance appraisal system helps in keeping good relation with your
boss,20% are strongly in favor of this, but 27% strongly disagree and 13% disagree for
this.

60% employees agree and 20% strongly agree that Performance management system
helps to identify the Training and Development needs but 13% and 7% disagree and
strongly disagree respectively.

60% of employees are fully satisfied with the overall culture of the organization.

60% employees agree that Performance Management System is effective, 20% say that it
is partly effective, and 20% say it is not effective.

53% employees agree that they are given much freedom to improve in your area of
operation and rest 43% disagree for this.

Accommodation provided by OCL was not up to the mark therefore new construction of
building has started.

I found that 62%employees told that PMS should be transparent but32%employees not
want that PMS should transparent.

70% employees think that PMS helps to participate in self-development activities but
30% think against it.

52% employees say that pay given to them is according to their performance but 48%
employees dont think so.

Communication system is very fast in OCL, as all computers are connected with net so that
information can easily pass to the other employees & corrective action can be taken
immediately.

41

SUGGESTIONS:-

A good efficient management requires employees of its own standard which compiles of
honesty, dedication, simplicity, sharp mind, practicality, and of course professional
specialization in the respective field. Everything has been taken good care of in the
system but the thing lacking in the survey report was about honesty. I found no
parameters which could judge & praise the honesty & loyalty of the employees which
do play an important role in framing an employees portfolio regarding organization.
As per my opinion, some target must be given to each executive for each day so that they
pay more attention towards work and leisure time wasted by them is reduced.
Work done by the executives at lower level should be praised. As seen I felt that
whatever effort they are giving but not praised at all.
Executives competition must be held twice in a year so that their capability can be
known by top-management.
HR department is the department which looks after all the important activities of the
organization so I think more care should be taken to make the department look well. If
the working place will be furnished, executives will be more attracted towards their
work. Environment plays a great role in improving the performance.
As per my view PMS should be transparent. So that everyone must understand how it
works, the part they play & how any decisions arising from Performance Management
that affect them are reached.

42

From my survey I found that most of the employees are not satisfied by the prevailing
facilities provided by OCL. There should be more recreational facilities for the
employees.

ABC system should be changed. It should be more specific. That means who is rated A,
B, C he must know that why he is getting A. The management must provide sufficient
reason to them.

There is one overall assessment format for level 9 to 12.As per my suggestion it should be
circulated to all the levels.

During my survey, I came to know that there is no canteen facility for the executives. One
canteen is there for workers only. The management should think about this matter.

43

CONCLUSION:-

At last it can be concluded that OCL India Ltd is one of the largest cement produce factory
with its branches all over India. During the study, a clear idea is got about OCL and its
functional departments. The OCL is a great blessing to our Orissa. OCL achieves a great
success in the market. Its having a very good market and distribution system seems to be a
success.
With the implementation of the new technology it is improving the marketing
strategies and solving the existing problems.
A performance management system is necessary in the organization to evaluate
employees. The organization uses various techniques to measures the performance like 360
degree feedback appraisal, ABC analysis and many more. The organization has different
format for evaluating the performance of employees. The distribution, production, & all other
departments have a good co-operation among them, which makes an easy flow of
communication within the organization.
Moreover the adoption of the total quality system has strengthened the organization.
Kaizen meeting are held every month within the organization.
Good training facilities are provided within the organization to the employees /workers.
The training provided is evaluated by the respected departmental heads.

44

BIBLIOGRAPHY
Robbins, Stephen p, Judge, Timothy A, Organizational Behavior, New Delhi,
Pearson Education ,13th Edition
Paul Hersey, Kenneth H. Blanchard, Management of Organizational behavior:
Utilizing Human Resource, New Delhi, Fourth Edition
Rao V.S.P, Narayana P.S, Organizational theory and behavior, New Delhi, Second
Revised Edition
Brown, The social psychology, p.253
HR practices of OCL India Limited, Rajgangpur

REFERENCES

www.sdsresearch.com accessed on 20.5.2011


www.coolavenues.com accessed on 22.5.2011
www.citehr.com accessed on 22.5.2011
verityassoc.wordpress.com accessed on 25.5.2011
www.allacademic.com accessed on 27.5.2011

45

www.allacademic.com accessed on 30.5.2011

QUESTIONNIARE
Q.1

Sex

Male

Female

Q.2 Age

.
Q.3

Under 30

41-50

30-40

Over 50

Performance appraisal is necessary in the organization or not?

Yes

No

Q.4

Do you think Performance management system (PMS) should be transparent or not?

Q.5

Yes

No
Do you think that PMS helps to know your strength and weakness?

Q.6

Yes

No

Whether the good Performance awarded in the organization is on basis of


competence?

Q.7

Yes

No
Do Performance appraisal helps in improving your present performance?

Q.8

Yes

No
Performance appraisal system helps in keeping good relation with your boss?
strongly agree
disagree

agree
strongly disagree

Q.9

Are you satisfied with the overall culture of the organization?

Q.10

Yes

No
Are you given much freedom to improve in your area of operation?

Yes

No
Q.11 Are there any recreational facilities for the employees?

46


Q.12

Yes

No

Performance management System is Effective or not?

.
Q.13

Effective

Partly effective

not effective

Is Performance management system helps to identify the Training


And Development needs?
strongly agree
disagree

agree
strongly disagree

Q.14 Performance management system identifies your inefficiencies and


New skills required in the year ahead

strongly agree
disagree

agree
strongly disagree

Q.15 your company uses 360 degree feedback to collect performance rating

Yes

No

Q.16 your manager works as mentor to develop you


strongly agree
disagree

agree
strongly disagree

Q.17 Your Company has performance related pay

Yes

No

Q.18 Performance management system motivates you to change your behaviors


strongly agree
disagree

agree
strongly disagree

Q.19 Performance management system motivates you to participate in self-development


Activities more

Yes

No

Q.20 Performance management system motivates you to do your job

47

strongly agree
disagree

agree
strongly disagree

48

ANNEXURE-1

DIVISION:-------------------------------------FINAL YEAR:-------------------------------------DATE:--------------------------------------S.NO DIVISIONAL


MEASUREMENT
WEIGHTAGE STATUS
TARGEETS
OBJECTIVES
CRITERIA
1QTR 2QTR 3QTR 4QTR
STRATEGIC &
NON- STRATEGIC

DIVISIONAL OBJECTIVES
OCL INDIA LIMITED
HRD/PER/01
SIGN:
NAME:

DEPARTMENTAL / TEAM BALANCE SCORE CARD & MEASURES


By DEPARTMENT CONCERNED

ANNEXURE-2

HRD

OCL INDIA LIMITED: RAJGANGPUR


DEPARTMENT NAME: HRD
SL.
NO

DEPARTMENTAL / SECTIONAL
KEY RESULT AREAS (KRAs)

FIN. YEAR : 2009-10


ACCOUNTA
BILITY

49

DIVISIONAL HEAD

PER

DATE : 01.04.2009
T A R G E T S

MEASUREM
ENT

WEIGHTA
GE

STATU
S

02

CRITERIA

FINANCIAL

F-1

`FINANCIAL

F-2

F-3

MANAGE & & OPTIMISE H R RELATED


OPERATIONAL EXPENSES
a) Recruitment Expenses
- Scrutiny of limited candidates for Interview
* Tele Interview
* Video conference
b) Training & Development
- Effective negotiation with External Faculty
on Prof, fees. From engagement of minimum
10
faculty
c) TQM ACTIVITY
- Saving on purchase of gift items after
effective bargaining and contacting reliable
supplier of standard items with maximum
discount. Confirming whole sale rate and
manufacturer rate

QTR.
1

QTR.
2

QTR.
3

QTR.
4

80%

85%

85%

85%

25
Sri
NNS/SR/RJ/A
T

70%
% of
candidates
scrutinised
during short
listing.

Sri NNS/PKR
14,000
Amount saved
Sri
NNS/PKR/
AT

Curtail in
expenses

20,00
0

15,000
20,00
0

50

CUSTOMER

CUSTOMER ORIENTATION ON
CONTINUOUS MANNER
C-1

25

a) Quality of Recruitment
-

Selection of Right man for right job at entry


level

Sri
NNS/SR/
RJ/AT

% Rated good &


above
Deviation from
due date

100 %

100%

100%

100%

100%

0%

0%

0%

0%

0%

To reduce lead time in Recruitment


Fresher ( 30 days)
Experience ( 60 days)
Rating by Dept.

C-2
a)

Internal Customer Feedback on HRD


department

Sri
NNS/PKR
/SR/RJ/A
T

Good

&PROCESS

Good

Good

Good

Deviation from
due date

C-3

0%
Communication
Ensure timely communication of all information
connected to all HR sub systems from HRD as per
calendar / check list.

Good

Sri
NNS/PKR
/SR/RJ/A
T

EFFICACY & SALIENCY OF KEY H R


PROCESS

25

P-1

51

0%

0%

0%

0%

PERATIONS

Recruitment Process
SR/RJ/AT

% of success cases

100%

100%

100%

100%

100%

80

90

90

90

90

38

10
1.5

10
1.5

10
1.5

10
1.5

Induction and Boarding process as per check list


P-2

No. of prog. rated


excellent

a) Training & Development


-

Ensure imparting Quality Training


programme by Internal / External Faculties
to achieve satisfaction level of participants
as excellent in 90 % of programmes

BSC/ KRA
- Ensure Adherence & Timeliness in PMS

P-4

P-5

No of programmes
Deviation from due
date

Conducting minimum 40 In-house training


programmes per annum / 1.5 trg. Man days
per executive

P-3

Sri
NNS/PKR

-doSri NNS/
PKR
Sri
NNS/PKR/RJ

Deviation from due


date

SR

No of failures intimated
by authority , if any

Computerization of PMS package by Dec


09

Compliance as per calendar


- Internal Customer Feedback
( Half yearly Jan /Jul)
- 360 degree feedback
( Half yearly June /Dec)
Statutory Compliance
- Compulsory notification of vacancies
- Apprentice Act

Sri
NNS/PKR/SR/
RJ/AT

52

0%

0%

0%

0%

0%

70%

80%

85%

100%

100%

70%

100%

0%

0%

0%

0%

100%
0%

0%

0%

0%

-TRAINING & GROWTH -

TO ENSURE COMMITTED TEAM OF JOB


OWNERS
T-1
Employee Involvement through Quality improvement
initiatives (TQM)
Kaizen

25
Sri NNS/PKR/
SR/RJ/ AT

No. of Kzn/Mem/
month

2.5

2.5

2.5

2.5

50%

60%

80%

90%

2.5

No of SGA
SGA

Sri SR/RJ/ AT

T-2
Competition
Participation

No Participation
Sri
NNS/PKR/SR

T-3
Developing new training package for In house Training
% of compliance

100%

( Train The Trainer ) by Dec. 09

SIGN.
TEAM LEADER:
NAME:
(N N Sasmal)

HOD:
(M Mishra)

53

DIVISIONAL HEAD
(VP SOOD)

ANNEXURE-3

INDIVIDUAL KEY RESULT AREAS (KRAs)


(To be segregated from FORMAT HRD /PER/02)
OCL INDIA LIMITED: RAJGANGPUR

NAME: S Rath

HRD

DEPT. H R D

FIN.. YEAR : 2009-10

PER

DATE : 25.04.2009
T A R G E T S

SL. NO.

INDIVIDUAL KEY RESULT


AREAS (KRAs)

MEASUREMENT
CRITERIA

WEIGHTAGE

STATUS

SOURCE
QTR.
1

54

QTR.
2

QTR.
3

QTR.
4

04

FINANCIAL

MANAGE & OPTIMISE H R


RELATED OPERATIONAL
EXPENSES
a)
-

Recruitment Expenses
Scrutiny of limited
candidates for interview.
Tele Interview
Video conference

25
% of candidates
scrutinized during short
listing

70 %

55

80%

85%

85%

85%

CUSTOMER

CUSTOMER ORIENTATION ON
CONTINUOUS MANNER

25

a) Quality of Recruitment
-

Selection of Right man for right job at entry level

To reduce lead time in Recruitment


Fresher ( 30 days)
Experience ( 60 days)

% Rated good &


above

100%

100%

100%

100%

100%

Deviation from
due date

0%

0%

0%

0%

0%

Rating by Dept.

Good

Good

Good

Good

Good

Deviation from
due date

0%

0%

0%

0%

0%

b) Internal Customer Feedback on HRD department

c) Communication
Ensure timely communication of all information connected
to all HR sub systems from HRD as per calendar / check
list.

.3

56

OPERATIONS
PROCESS &

EFFICACY & SALIENCY OF KEY HR PROCESS


Recruitment Process

25

Induction and Boarding process as per check list


% of success cases
Compliance as per calendar
- Internal Customer Feedback
( Half yearly Jan /Jul)
- 360 degree feedback
( Half yearly June /Dec)
Statutory Compliance
- Compulsory notification of vacancies

100%

100%

100%

100%

100%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

Deviation from due date

No of failures intimated by
authority , if any

.4

57

GROWTH
TRAINING &

TO ENSURE COMMITTED TEAM OF JOB OWNERS

25

Employee Involvement through Quality improvement initiatives


(TQM)
Kaizen
Competition
Participation

No. of Kzn/Mem/
month

2.5

2.5

2.5

2.5

No Participation

% of compliance

50%

60%

80%

90%

Developing new training package for In-house Training


100 %

( Train The Trainer ) by Dec. 09

SIGN.
NAME:

APPRAISEE:

APPRAISER:

58

DIVISIONAL HEAD:

ANNEXURE-4

TEAM ACTION PLAN

HRD

PER

03

OCL INDIA LIMITED: RAJGANGPUR

DEPARTMENT NAME:

FIN.. YEAR :

DATE :
T A R G E T S

SL.
NO.

TEAM OBJECTIVES

ACTION
PLAN

MEASUREMENT
CRITERIA

WEIGHTAGE

STATUS

`FINANCIAL

QTR.
1

59

QTR.
2

QTR.
3

QTR.
4

ANNEXURE-5

MONTHLY/ REVIEW OF OBJECTIVES/ ACTION PLAN


DEPARTMENT NAME:
SL.
NO.

OBJECTIVES / ACTION
PLAN

FIN.. YEAR :
MEASUREMENT
CRITERIA

HRD

PER

04

DATE :
STATUS

TARGET
THIS
MONTH

`FINANCIAL

UP TO
MONTH

ANNEXURE-6

60

ACHIEVED
THIS MONTH

REVISED
TARGET
NEXT
MONTH

UP TO MONTH

UP TO
MONTH

REMARKS/HEL
PING/HINDERI
NG
FACTORS/NEW
ACTION
PLANS

EXPECTATION FROM OTHER TEAM

HRD

PER

OCL INDIA LIMITED: RAJGANGPUR


S.NO
DIV:

SIGN:
NAME:

TEAM OBJECTIVES / ACTION PLANS


DEPARTMENT:

EXPECTATIONS FROM OTHER


TEAM: TEAMS TOFIN..
YEAR
MEET
OUR :TEAM
OBJECTIVES

TEAM LEADER

61

COMMENTS OF THE
CONCERNED TEAMS
DATE :

05