PROJECT REPORT

ON

PERFORMANCE APPRAISAL & REVIEW

IN

HINDUSTAN AERONAUTICS LIMITED (HAL)

SUBMITTED IN PARTIAL FULFILLMENT OF

BACHELOR IN BUSINESS ADMINISTRATION

SESSION 2011-12

SUBMITTED BY:SUMIT SINGH SISODIA

BBA III Semester

UNDER THE SUPERVISION OFMR. RAHUL MAURYA

BBA FACULTYB.B.D.N.I.T.M., LUCKNOW

BABU BANARASI DAS NATIONAL INSTITUTE OFTECHNOLOGY AND MANAGEMENT

LUCKNOW

1

PREFACE

There are number of forces that make HR the greatest support system in the

Organization. Employees play a great role in the success of any organization. So

measuring the performance of employees is really a task of great concern and also

recruiting the right person for the right job contributes to the success of the organization.

This Project Report has been completed in Partial fulfillment of my Management

Program, Bachelor of Business administration (BBA) in the company “Hindustan

Aeronautics Limited ”. The topic of my project was “Performance Appraisal in

Hindustan Aeronautics Limited”. This topic is come under Performance Management

System of Hindustan Aeronautics Limited.

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ACKNOWLEDGEMENT

I avail the opportunity to express my gratitude to Mr. Jatin Srivastava (HOD-BBA) who

always try to sow seed of agronomism amongst us and created a disciplinary culture in

the student.I also express my gratitude to my faculty Mr. Rahul Maurya, Faculty of

management, B.B.D.N.I.T.M., Lucknow and staff of who have been instrumental in

making this report useful one.

Finally, I wish to thank to my family and friends for their inspiration, encouragement and

support which enabled me to in timely submission and report.

Sumit Singh Sisodia

BBA III semester

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TABLE OF CONTENT

1. Preface…………………………………………………………………

2. Acknowledgement……………………………………………………..

Part I

(A) Introduction to company…………………………………………

(B) Introduction to performance appraisal…………………………….

Part II

(I) Research Objectives………………………………………………

(II) Research Methodology …………………………………………..

(III) Scope of Research ……………………………………………….

(IV) Data Analysis & Interpretation …………………………………

(V) Findings…………………………………………………………

(VI) SWOT Analysis …………………………………………………

(VII) Recommendation ………………………………………………

(VIII) Conclusion………………………………………………………

(IX) Limitation………………………………………………………

(X) Bibliography……………………………………………………

(XI) Appendix

1. Questionnaire …………………………………………………

List of table

1. Financial Highlights…………………………………………………….

2. Assignment of Weightages……………………………………………. .

3. Scoring of KRAs………………………………………………………….

4. Modification in KRAs…………………………………………………....

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List of Figures

1. Our services…………………………………………………………………

2. Organization structure………………………………………………………

3. The cycle of performance management…………………………………….

4. PMS process flow…………………………………………………………..

5. Goal…………………………………………………………………………

6. Mid year review …………………………………………………………….

7. Annual review……………………………………………………………….

8. Rating scale…………………………………………………………………

9. Competency framework …………………………………………………….

10. Competency framework with rating scale ………………………………….

11. Feedback process……………………………………………………………

12. Satisfaction level of employees with new PMS…………………………..

13. Satisfaction level of employees with online system of PMS …………….

14. Satisfaction level of employees with the critical incident diary ……………

15. Performance of balanced score card………………………………………

16. KRAs measuring performance ……………………………………………

17. Hoshin kanri approach ………………………………………………………

18. Satisfaction level with recruitment & selection process …………………

19. Deduction from salary………………………………………………………

20. Recruitment through employees referral………………………………….

21. Satisfaction level with salary package …………………………………….

22. Recruitment & selection process fulfills the requirement of organization

23. Formalities after recruitment & selection process ………………………

5

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INTRODUCTION TO COMPANY

ABOUT THE ORGANISATION:

HAL a flagship company of our country is a great organization, with a glorious future.

The Hindustan Aeronautics Limited is the only organization of its kind engaged in

the production; maintenance and overhauling of defense Aircraft and missiles. MIG 27,

MIRAGE 2000, DORNIER, JAGUAR, CHEETAH, LIGHT COMBAT AIRCRAFT

(LCA), SU-30, HJT-36 (IJT) AJT, ADVANCE LIGHT HELICOPTOR (ALH) are some

of the major Aircrafts supplied by H.A.L. to the Indian Air Force. Organization is also

involved in the manufacture and assembly of system for India’s space program.

Hindustan Aeronautics Limited is an organization, where integrated air-borne

weapons platform are conceived, developed, manufactured and service. It has got a rare

distinction of holding the capability spanning from the entire range of production

conception to after sales report.

The beginning of HAL can be traced to the year 1940, when a far-sighted

industrialist, the late Seth Walchand Hirachand set up a company called Hindustan

Aircraft Limited at Bangalore with the object of establishing an Aviation Industry that

can manufacture, assemble and overhaul aircraft under license. Initially, aircraft like

Curtiss Hawk, Vultee Bomber and Harlow trainer were taken up for manufacture and

overhaul in collaboration with Inter continental Aircraft Company of USA.

With the escalation of the Second World War, the government of India took over

the management of the company in 1942 and handed it over to US Air Force for repair

and overhaul of various aircraft. Between 1942 and 1945, a total of 1000 aircraft and 7

3400 engines were overhauled. The main activity for the next few years after the war was

reconditioning and conversion of war surplus aircraft for the use of IAF and Civil

operators.

MISSION & VALUES

MISSION:

“To become a globally competitive aerospace industry while working as an

instrument for achieving self-reliance in design, manufacture and maintenance of

aerospace Defense equipment and diversifying to related areas, managing the business on

commercial lines in a climate of growing professional competence”.

VALUES:

We are committed to these values to guide us in our activities.

CUSTOMER SATISFACTION:

We are dedicated to building a relationship with our customers where we become

partners in fulfilling their mission. We strive to understand our customer’s needs and to

deliver products and services that fulfill and exceed all their requirements.

COMMITMENT TO TOTAL QUALITY:

We are committed to continuous improvement to all our activities. We will supply

products and services that conform to highest standards of design, manufacture,

reliability, maintainability and fitness for use as desired by our customer.

COST AND TIME CONSCIOUSNESS:

We believe that our success depends on our ability to continually reduce the cost

and shorten the delivery period of our products and services. We will achieve this by

eliminating waste in all activities and continuously improving all processes in every area

of our work.

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INNOVATION AND CREATIVITY:

We believe in striving for improvement in every activity involved in our business

by pursuing and encouraging risk- taking, experimentation and learning at all levels with

in the company with a view to achieving excellence and competitiveness.

TRUST AND TEAM SPIRIT:

We believe in achieving harmony in work-life through mutual trust, transparency,

co-operation and sense of belonging. We will strive for building empowered teams to

work towards achieving organization goals.

RESPECT FOR THE INDIVIDUAL:

We value our people. We will treat each other with dignity and respect and strive

for individual growth and realization of every one’s full potential.

INTEGRITY:

We believe in a commitment to be honest, trustworthy and fair in all our dealings.

We commit to be loyal and devoted to our organization. We will practice self-discipline

and own responsibility for our actions. We will comply with all requirements so as to

ensure that our organization is always worthy of trust.

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OBJECTIVES OF HAL

In April, 1971 the board of directors of HAL appointed a committee of HAL to

review the total functioning of the company and make its recommendations. One of the

study teams set up by committee had gone into various aspects of the objectives of HAL

in great detail and made valuable suggestions for determining the objectives of HAL.

The objectives of HAL can be divided into two parts:

1. Basic objectives

2. Other objectives

Basic Objectives:

(i) To serve as an instrument of the national policy to achieve self-reliance in the

design, development and production of aircraft and aeronautical equipment to meet

the country’s changing and growing needs with special emphasis on military

requirements.

(ii) In fulfillment of this objective the company shall regard itself fundamentally

responsible for design and development, relaying however upon such relevant

facilities as are available in other national institutions but always holding itself

basically responsible for the growth and furtherance of the country’s aeronautical

capacity.

(iii) To so conduct its business economically and efficiently that it can contribute its due

shares to the national efforts to achieve self-reliance and self-generating economy.

(iv) Towards this end, to develop and maintain this organization which will readily

respond to and adopt the changing matrix of socio-techno economic relationship

and wherein a socio climate of growing professional competence, self-discipline,

mutual understanding, deep commitment and a sense of belonging will be fostered

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and each employee will encouraged to grow in accordance with his potential for the

furtherance of the organizational goal.

Other Objectives:

Consistent with the basic objective of the company, the personnel development of

the corporate office has adopted certain specific objectives which will act as a source of

inspiration and guidance in involving personal policies and farming rules and regulation

for growth and development of employees and to ensure their deep commitment and

sense of belonging to the company. The specific objectives are stated below:

(i) Ensure quality of personnel of all level and provide them the right work

environment, job satisfaction and professional challenges.

(ii) Provide a healthy blend of employees who have growth with the organization and

those selected from outside.

(iii) Ensure employment of minimum number of personnel and avoid surpluses.

(iv) Motivate employees to be increasingly achievement oriented.

(v) Provide adequate opportunities for personnel to improve the level of their

professional knowledge.

(vi) Personnel with talent and potential growth to be developed to should have higher

responsibilities.

(vii) Ensure uniformity in principal conditions of service.

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HISTORY AND GROWTH of HAL

Hindustan Aeronautics Limited (HAL) came into existence on 1st October

1964.  The Company was formed by the merger of Hindustan Aircraft Limited with

Aeronautics India Limited and Aircraft Manufacturing Depot, Kanpur.

The Company traces its roots to the pioneering efforts of an industrialist with

extraordinary vision, the Late Seth Walchand Hirachand, who set up Hindustan Aircraft

Limited at Bangalore in association with the erstwhile princely State of Mysore in

December 1940. The Government of India became a shareholder in March 1941 and took

over the Management in 1942.

Today, HAL has 16 Production Units and 9 Research and Design Centers in 7 locations

in India. The Company has an impressive product track record - 12 types of aircraft

manufactured with in-house R & D and 14 types produced under license. HAL has

manufactured 3550 aircraft (which includes 11 types designed indigenously), 3600

engines and overhauled over 8150 aircraft and 27300 engines.

HAL has been successful in numerous R & D programs developed for both Defense and

Civil Aviation sectors. HAL has made substantial progress in its current projects:

Dhruv, which is Advanced Light Helicopter (ALH).

Tejas - Light Combat Aircraft (LCA).

Intermediate Jet Trainer (IJT).

Various military and civil upgrades.

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Dhruv was delivered to the Indian Army, Navy, Air Force and the Coast Guard in

March 2002, in the very first year of its production, a unique achievement.

HAL has played a significant role for India's space programs by participating in the

manufacture of structures for Satellite Launch Vehicles like

PSLV (Polar Satellite Launch Vehicle)

GSLV (Geo Stationary Launch Vehicle)

IRS (Indian Remote Satellite)

INSAT (Indian National Satellite)

There are three joint venture companies with HAL:

BAeHAL Software Limited

Indo-Russian Aviation Limited (IRAL)

Snecma HAL Aerospace Pvt Ltd

Apart from these three, other major diversification projects are Industrial Marine Gas

Turbine and Airport Services. Several Co-production and Joint Ventures with

international participation are under consideration.

HAL's supplies / services are mainly to Indian Defense Services, Coast Guards and

Border Security Forces. Transport Aircraft and Helicopters have also been supplied to

Airlines as well as State Governments of India. The Company has also achieved a

foothold in export in more than 30 countries, having demonstrated its quality and price

competitiveness. HAL has won several International & National Awards for

achievements in R&D, Technology, Managerial Performance, Exports, Energy

Conservation, Quality and Fulfillment of Social Responsibilities.

 HAL was awarded the “INTERNATIONAL GOLD MEDAL AWARD” for

Corporate Achievement in Quality and Efficiency at the International Summit.

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ORGANISATIONAL GROWTH OF HAL

1940: H.A.L was set up by Seth Warchand Hirachand in association with the

government of Mysore as a private limited company.

1941: First product “HARLOW TRAINER AIRCRAFT” & “CURLINESS HAWK

AIRCRAFT” handed over to government of India.

1942: Company was handed over to the U.S. AIR FORCE. HAL repaired over 100

different varieties of aircraft and 3800 piston engines.

1945: Government of India took over the management of HAL again after the Second

World War.

1949: First percivical apprentice aircraft assembled.

1951: The control of HAL was shifted to ministry of defence from ministry of industry.

1954: The first HINDUSTAN TRAINER II (HT—II) had its maiden flight.

1956: HAL comes under the public sector.

1960: Aircraft Manufacturing Department at Kanpur was established.

1962: HINDUSTAN AERONAUTICS INDIA LIMITED (HAIL) was formed to

manufacture MIG-21 aircraft. Three factories at Nasik, Koraput, and Hyderabad

were established.

1964: HAIL was dissolved and its assets merged with aeronautics India limited and

company by the name of HAL was formed.

1969: An agreement with USSR AWS reached for the license production of MIG-21

AIRCRAFT.

1970: Helicopters Division was established to manufacture Helicopters.

1973: Lucknow Division was formed for manufacture of more than 500 types of

Instruments and Accessories.

1976: An agreement with USSR for license for MIG-21 AND BIS –AIRCRAFT.

1979: Agreement with British aerospace for manufacture JAGUAR AIRCRAFT.

1982: Agreement with USSR for license manufacturing of MIG-27M AIRCRAFT.

1983: Korwa Division lraged division for HAL formed.

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1990: Design and Development of Advanced Light Helicopter.

1996: Major servicing of the first batch of MIRAGE – 2000 AIRCRAFT was under

taken. It conducted several “C” CHECKS ON BOEING 737 AIRCRAFT.

1998: IGMT a new Division was established at Bangalore.

1998: Establishment of Industrial & Marine Gas Turbine Division for aerodoriative gas

turbines / Industrial engines.

2000: Establishment of Airport Service Service Centre for C0-ordinating the operations

at HAL Airport – Bangalore.

2002: Establishment of Sukhoi Engine Division at Koraput.

2002: Expansion of Nasik Division as Aircraft Manufacturing Division and Aircraft

Overhaul Division.

2006: HAL ranked 45th among Top Defense Firm in the World.

2006: 19th July, HAL – IAI cooperation in Aero structure.

2006: 21st July, Rolls – Royce & HAL celebrate 50 year of partnership.

2006: HAL launches newspaper from Minsk square on 1st September.

2006: 3rd September, SU-30 MKI Programme on schedule: HAL.

2006: 14th October, HAL Launches Helicopter ambulance, Charter Service named

“Vayu Vahan”.

2006: 20th December, HAL receives EEPC Award for the year 2004-05.

2007: 5th June, HAL completes planting 25 Lakh saplings.

2007: 22nd June, HAL gets Navratna Status.

2007: 2nd July, Ashok Nayak is HAL’s new MD.

2007: 6th August, HAL ranked 34th among top 100 defence firm in the world.

2007: 16th August, DHRUV with SHAKTI ENGINE and Weapons make maiden flight.

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Figure (1) our services

REPAIRS, MAJOR SERVICING AND SUPPLY OF SPARES

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The Division carries out Repair and Overhaul of Accessories, with minimum turn-

around-time. Site Repair facilities are offered by the Division by deputing team of expert

Engineers / Technicians.

Services provided for:

Military Aircraft

MIG Series

Jaguar

Mirage-2000

Sea - Harrier

AN-32

Kiran MK- I / MK- II

HPT - 32

SU-30 MKI

Civil Aircraft

Dornier-22B

AVRO HS-748

Helicopters

Chetak (Alouette)

Cheetah (Lama)

ALH (IAF / NAVY / COAST GUARD  / CIVIL)

Sub-contract Capabilities

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The Division has comprehensive manufacturing capabilities for various Hi-tech

components, Equipment and Systems to customer's specifications and ensures

high quality, reliability and cost effectiveness.

 

The Division has over 25 years of experience in producing aeronautical

accessories making it an ideal partner for the International Aero Engineering

Industry.

The Division also manufactures and supplies complete range of components of

Cheetah (Lama) & Chetak (Alouette) Helicopters, Jaguar and MIG series Aircraft to

Domestic and International Customers to support their fleet.

CUSTOMER SERVICES

The Division has full-fledged infrastructure, facilities and systems for ensuring

optimum level of Customer satisfaction for the products and services rendered. The major

areas include:

Overhaul/Repair of Rotables

The Division takes up the overhaul/repair of the entire range of Electrical,

Instrument, Mechanical and Armament Rotables.

Supply of Spares and other major units

The Division manufactures and supplies the entire range of spares required for

first and second-line servicing of aircraft at the IAF bases. Canopies, Flexible Rubber

Fuel Tanks, Main and Nose Undercarriages, Ejection seats and Ground Support / Ground

Handling Equipment are a few of the items supplied.

Site Repair

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The Division undertakes site repair of Aircraft at the IAF bases by deputing site

repair teams.

Defect Investigation/Failure Analysis

The aggregates which are received on premature withdrawal from the units is

studied and the causes for defects/failures are investigated. Repetitive cases are taken up

for in-depth study and modifications are incorporated in the units to minimise the

recurrence of such defects/failures in future.

Product Training

The Division conducts various training programs for customers in specialised

areas for better utilisation of the products. The programs cover Weapon Systems, Auto

Pilot Systems, Electrical Systems and Hydraulic Systems.

Positing of Service Engineers

The Division has posted Service Engineers at various IAF bases to closely liaise

and assess the requirement of the customers. Based on the feed-back received from these

Service Engineers, the Division renders adequate support for fully utilising the products.

DESIGN SUPPORT

Product Improvement Modifications

The Division has incorporated various modifications on the MIG variants with

respect to -

Flight Safety

Reliability and Maintainability

Performance Improvement

Integration of New Equipment

Additional Armament Carrying Capability

PARTICIPATION IN OTHER PROJECTS

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ALH

The Division has been manufacturing and supplying a large number of components

for the Advanced Light Helicopter (ALH). In addition, the Division manufactures under-

carriages for.

LCA

The Division has undertaken NC machining of frames for Light Combat

Aircraft (LCA). The Division manufactures undercarriages for LCA also.

MIRAGE 2000 UNDERCARRIAGE OVERHAUL

The Division is in the process of setting up facilities to undertake overhaul of

undercarriages for Mirage-2000 aircraft.

TRANSPORT AIRCRAFT

The Division is participating in the development and co-production of 15-seater

Transport aircraft for the civil market. Wing Panels, Interspar Ribs and Bulkheads will be

produced at the Division. In addition, the Division will be undertaking the assembly

of wings.

Other Service Facilities (Engine Division)

1. Repair and Overhaul of Engines

2. Spectro Photo-metric Oil Analysis (SOAP test)

3. Electron Beam Welding

4. Robotic Plasma Spray Facility

5. Sermetal Coating (High Temperature Corrosion Resistance Painting)

6. Chemical Milling

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PRESENT SETUP OF THE ORGANISATION

Hindustan Aeronautics Limited has three production complexes – Bangalore, MIG and

Accessories and one Design complex each headed by a Managing Director, reporting to

Chairman, HAL. HAL has spread its wings to cover various activities in the area of

Design, Development, Manufacturing and Maintenance. Today HAL has 16 production

divisions / units, 7 at Bangalore and 1 each at Nasik, Koraput, Lucknow, Kanpur,

Korwa, Hyderabad and Barrackpore. These divisions / units are fully backed by nine

Design Centers, these Centers are engaged in the design and development of the

Combat aircraft, Helicopters, Aero engines, Engine test beds, Aircraft communication

and Navigation Systems Accessories of Mechanical and Fuel system and instruments.

Major products of Accessories Complex:

Lucknow Division Landing Gear, Wheels, Brakes, Hydraulic

& Fuel accessories & aircraft instruments

GSE & GHE, ECS etc.

Korwa Divison INS, HUDWAC, NAV attack LRMTS,

FDR, Auto Stab System.

Hyderabad Division Surveillance Radar, Precision Approach

Radar, INCOM, RAM, IFF, VHF /

UHF (5).

Kanpur Division DO-228, HPT-32 and Civil aircrafts.

21

ORGANISATION STRUCTURE

HAL CORPORATE

22

DESIGN COMPLEX

Aircraft R & D Center

Rotatory wing R & D Center

Engine & Test bed R & D Center

Strategic Electronics R & D Center

Aircraft Updates R & D Center

Aerospace System & Equipment R & D Center

Gas Turbine R & D Center

Control Materials & Processes lab & NDT Center R & D Center

BANGLORE COMPLEX

Aircraft Division

Engine Division

Foundry & Forge Division

Helicopter Division

Aerospace Division

Overhaul Division

Industrial & Marine gas Turbine Division

ACCESSORIESCOMPLEX

Accessories Division Lucknow

Avionics Division Korwa

Avionics Division Hyderabad

Transport Aircraft Division Kanpur

MIGCOMPLEX

Nasik Division

Koraput Division

Figure (1) Organization Structure

ORGANIZATIONAL CHART

All over India H. A. L has 7 divisions; these divisions are dedicated for different purpose

related to the manufacturing of commercial and fighter aircrafts. The divisions are as

follows:

1. Bangalore Division It is divided into 5 divisions:

a) Air craft division, which also consist a runway.

b) Engine division, which is indulged mainly in manufacturing of LCA Engine.

c) Helicopter division.

d) Overhaul division.

e) Design bureau.

2. Nasik Division It is currently dealing with Russian accessories repair, overhaul and

manufacturing which are used in aircrafts.

3. Kanpur Division It is dealing with assembly of whole commercial aircrafts like

Puspak, Dornier and other major products are DO-228, HPT-32 and Civil aircrafts etc.

4. Lucknow Division It is an accessories division which deals with manufacturing of

more than 1400 accessories like, alternator, generators, tachometer, tacho generator

and other major products are Landing gear, Wheels, Brakes, Hydraulic & Fuel

accessories, aircraft instruments GSE, GHE & ECS etc.

5. Korwa Divison It also deals with design and manufacturing of accessories (mainly

electronics) and other major products are INS, HUDWAC, NAV attack LRMTS, FDR,

Auto Stab System.

6. Koraput Division It is indulged in assembly of engines of aircraft.

7. Hyderabad Division It is an accessories division. They manufacturing an

accessories like Surveillance Radar, Precision Approach Radar, INCOM,

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RAM, IFF, VHF / UHF (5).

Financial Highlights

Hindustan Aeronautics Limited (HAL) has cruised past the Rs.5, 000-crore mark

for the first time with a sales turnover of Rs.5, 341.50 crores ($1.20 billion) during the

Financial Year 2005-06, The Value of Production has also gone up by 18.69% to Rs.

5,916.62 crores, while the Profit of the Company (Profit Before Tax) soared to Rs.1,

126.29 crores, which is an increase of 48.54% over the previous year's performance.

Contracts worth Rs. 17,800 crores (4 billion USD) were concluded during the year.

The highlights are given below:

Rupees in Crores

Particulars 2004-05 2005-06 Growth over

Previous Year

Sales 4534 5342 17.82%

VOP 4984 5916 18.69%

Profit before tax 758 1126 48.54%

Profit after tax 501 771 53.89%

Gross Block 1417 1694 19.54%

Table (1) Financial Highlights

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INTRODUCTION TO TOPIC

Performance Appraisals are essential for the effective management and evaluation of

staff. Appraisals help develop individuals, improve organizational performance, and feed

into business planning. Formal performance appraisals are generally conducted annually

for all staff in the organization. Each staff member is appraised by his or her line

manager. Directors are appraised by the CEO, who is appraised by the chairman or

company owners, depending on the size and structure of the organization.

Annual performance appraisals enable management and monitoring of standards,

agreeing expectations and objectives, and delegation of responsibilities and tasks. Staff

performance appraisals also establish individual training needs and enable organizational

training needs analysis and planning.

Performance appraisals also typically feed into organizational annual pay and grading

reviews, which commonly also coincides with the business planning for the next trading

year.

Performance appraisals generally review each individual's performance against objectives

and standards for the trading year, agreed at the previous appraisal meeting.

Performance appraisals are also essential for career and succession planning - for

individuals, crucial jobs, and for the organization as a whole.

Performance appraisals are important for staff motivation, attitude and behaviour

development, communicating and aligning individual and organizational aims, and

fostering positive relationships between management and staff.

Performance appraisals provide a formal, recorded, regular review of an individual's

performance, and a plan for future development.

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Job performance appraisals - in whatever form they take - are therefore vital for

managing the performance of people and organizations.

Managers and appraisees commonly dislike appraisals and try to avoid them. To these

people the appraisal is daunting and time-consuming. The process is seen as a difficult

administrative chore and emotionally challenging. The annual appraisal is maybe the only

time since last year that the two people have sat down together for a meaningful one-to-

one discussion. No wonders then those appraisals are stressful - which then defeats the

whole purpose.

There lies the main problem - and the remedy.

Appraisals are much easier, and especially more relaxed, if the boss meets each of

the team members individually and regularly for one-to-one discussion throughout

the year.

Meaningful regular discussion about work, career, aims, progress, development, hopes

and dreams, life, the universe, the TV, common interests, etc., whatever, makes

appraisals so much easier because people then know and trust each other - which reduces

all the stress and the uncertainty.

Put off discussions and of course they loom very large. So one should not wait for the

annual appraisal to sit down and talk. The boss or the appraised can instigate this. An

employee with a shy boss, then take the lead.

A boss who rarely sits down and talks with people - or whose people are not used to

talking with their boss - should set about relaxing the atmosphere and improving

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relationships. Appraisals (and work) all tend to be easier when people communicate well

and know each other.

So one needs to sit down together and talk as often as one can, and then when the actual

formal appraisals are due everyone will find the whole process to be far more natural,

quick, and easy - and a lot more productive too.

Appraisals - Social responsibility and whole-person development :

There is increasingly a need for performance appraisals of staff and especially managers,

directors and CEO's, to include accountabilities relating to corporate responsibility,

represented by various converging corporate responsibility concepts including: the 'Triple

Bottom Line' ('profit people planet'); corporate social responsibility (CSR);

Sustainability; corporate integrity and ethics; Fair Trade, etc. The organization must

decide the extent to which these accountabilities are reflected in job responsibilities,

which would then naturally feature accordingly in performance appraisals. More about

this aspect of responsibility is in the director’s job descriptions section.

Significantly also, while this appraisal outline is necessarily a formal structure this does

not mean that the development discussed with the appraisee must be formal and

constrained. In fact the opposite applies. Appraisals must address 'whole person'

development - not just job skills or the skills required for the next promotion.

Appraisals must not discriminate against anyone on the grounds of age, gender, sexual

orientation, race, religion, disability, etc.

When designing or planning and conducting appraisals, seek to help the 'whole-person' to

grow in whatever direction they want, not just to identify obviously relevant work skills

training. Increasingly, the best employers recognize that growing the 'whole person'

promotes positive attitudes, advancement, motivation, and also develops lots of new

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skills that can be surprisingly relevant to working productively and effectively in any sort

of organization.

Developing the whole-person is also an important aspect of modern corporate

responsibility, and separately (if you needed a purely business-driven incentive for

adopting these principles), whole-person development is a crucial advantage in the

employment market, in which all employers compete to attract the best recruits, and to

retain the best staff.

Therefore in appraisals, be creative and imaginative in discussing, discovering and

agreeing 'whole-person' development that people will respond to, beyond the usual job

skill-set, and incorporate this sort of development into the appraisal process. Abraham

Maslow recognized this over fifty years ago.

If you are an employee and your employer has yet to embrace or even acknowledge these

concepts, do them a favour at your own appraisal and suggest they look at these ideas, or

maybe mention it at your exit interview prior to joining a better employer who cares

about the people, not just the work.

Are performance appraisals beneficial and appropriate :

It is sometimes fashionable in the 'modern age' to dismiss traditional processes such as

performance appraisals as being irrelevant or unhelpful. Be very wary however if

considering removing appraisals from your own organizational practices. It is likely that

the critics of the appraisal process are the people who can't conduct them very well. It's a

common human response to want to jettison something that one finds difficult.

Appraisals - in whatever form, and there are various - have been a mainstay of

management for decades, for good reasons.

Think about everything that performance appraisals can achieve and contribute to when

they are properly managed, for example: 28

Performance measurement - transparent, short, medium and long term

Clarifying, defining, redefining priorities and objectives

Motivation through agreeing helpful aims and targets

Motivation though achievement and feedback

Training needs and learning desires - assessment and agreement

Identification of personal strengths and direction - including unused hidden

strengths

Career and succession planning - personal and organizational

Team roles clarification and team building

Organizational training needs assessment and analysis

Appraisee and manager mutual awareness, understanding and relationship

Resolving confusions and misunderstandings

Reinforcing and cascading organizational philosophies, values, aims,

strategies, priorities, etc

Delegation, additional responsibilities, employee growth and development

Counseling and feedback

Manager development - all good managers should be able to conduct

appraisals well - it's a fundamental process

The list goes on.

People have less and less face-to-face time together these days. Performance appraisals

offer a way to protect and manage these valuable face-to-face opportunities. The advice is

to hold on to and nurture these situations, and if one is under pressure to replace

performance appraisals with some sort of (apparently) more efficient and cost effective

methods, one should be very sure that he can safely cover all the aspects of performance

and attitudinal development that a well-run performance appraisals system is naturally

designed to achieve.

There are various ways of conducting performance appraisals, and ideas change over

time as to what are the most effective appraisals methods and systems. Some people

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advocate traditional appraisals and forms; others prefer 360-degree-type appraisals;

others suggest using little more than a blank sheet of paper.

In fact performance appraisals of all types are effective if they are conducted properly,

and better still if the appraisal process is clearly explained to, agreed by, the people

involved.

Managers need guidance, training and encouragement in how to conduct appraisals

properly. Especially the detractors and the critics. One should help anxious managers

(and directors) develop and adapt appraisals methods that work for them and also be

flexible. There are lots of ways to conduct appraisals, and particularly lots of ways to

diffuse apprehension and fear - for managers and appraisees alike.

Particularly - encouraging people to sit down together and review informally and often -

this removes much of the pressure for managers and appraisees at formal appraisaltimes.

Leaving everything to a single make-or-break discussion once a year is asking for trouble

and trepidation.

One should look out especially for the warning signs of 'negative cascaded attitudes'

towards appraisals. This is most often found where a senior manager or director hates

conducting appraisals, usually because they are uncomfortable and inexperienced in

conducting them. The senior manager/director typically will be heard to say that

appraisals don't work and are a waste of time, which for them becomes a self-fulfilling

prophecy. This attitude and behavior then cascades down to their appraises (all the people

in their team) who then not surprisingly also apply the same 'no good - not doing it'

negative attitude to their own appraisals responsibilities (teams). And so it goes. A 'no

good - not doing it' attitude in the middle ranks is almost invariably traceable back to a

senior manager or director who holds the same view. As with anything, where people

need help doing the right thing, one must help them.

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All that said, performance appraisals that are administered without training (for those

who need it), without explanation or consultation, and conducted poorly will be counter-

productive and are wastes of everyone's time.

Well-prepared and well-conducted performance appraisals provide unique opportunities

to help appraisees and managers improve and develop, and thereby also the organizations

for whom they work.

Just like any other process, if performance appraisals aren't working, one should not

blame the process, but should ask oneself whether it is being properly trained, explained,

agreed and conducted.

An Effective Performance Appraisal

Aside from formal traditional (annual, six-monthly, quarterly, or monthly) performance

appraisals, there are many different methods of performance evaluation. The use of any

of these methods depends on the purpose of the evaluation, the individual, the assessor,

and the environment.

The formal annual performance appraisal is generally the over-riding instrument which

gathers together and reviews all other performance data for the previous year.

Performance appraisals should be positive experiences. The appraisals process provides

the platform for development and motivation, so organizations should foster a feeling that

performance appraisals are positive opportunities, in order to get the best out of the

people and the process.

In certain organizations, performance appraisals are widely regarded as something rather

less welcoming ('bollocking sessions' is not an unusual description), which provides a

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basis only on which to develop fear and resentment, so never, never, never use a staff

performance appraisal to handle matters of discipline or admonishment, which should

instead be handled via separately arranged meetings.

Types of performance and aptitude assessments, including formal

performance appraisals:

Formal annual performance appraisals

Probationary reviews

Informal one-to-one review discussions

Counseling meetings

Observation on the job

Skill- or job-related tests

Assignment or task followed by review, including secondments (temporary

job cover or transfer)

Assessment centers, including observed group exercises, tests presentations,

etc.

Survey of opinion of others who have dealings with the individual

Psychometric tests and other behavioral assessments

Graphology (handwriting analysis)

None of these methods is mutually exclusive. All of these performance assessment

methods can be used in conjunction with others in the list, depending on situation and

organizational policy. Where any of these processes is used, the manager must keep a

written record, and must ensure agreed actions are followed up. The notes of all review

situations can then be referred to at the formal appraisal.

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Holding regular informal one-to-one review meetings greatly reduces the pressure and

time required for the annual formal appraisal meeting. Holding informal reviews every

month is ideal all staff. There are several benefits of reviewing frequently and informally:

The manager is better informed and more up-to-date with his or her people's

activities (and more in touch with what lies beyond, e.g., customers, suppliers,

competitors, markets, etc)

Difficult issues can be identified, discussed and resolved quickly, before they

become more serious.

Help can be given more readily - people rarely ask unless they see a good

opportunity to do so - the regular informal review provides just this.

Assignments, tasks and objectives can be agreed completed and reviewed

quickly - leaving actions more than a few weeks reduces completion rates

significantly for all but the most senior and experienced people.

Objectives, direction, and purpose is more up-to-date - modern organizations

demand more flexibility than a single annual review allows - priorities often

change through the year, so people need to be re-directed and re-focused.

Training and development actions can be broken down into smaller more

digestible chunks, increasing success rates and motivational effect as a result.

The 'fear factor', often associated by many with formal appraisals, is greatly

reduced because people become more comfortable with the review process.

Relationships and mutual understanding develops more quickly with greater

frequency of meetings between manager and staff member.

Staff members can be better prepared for the formal appraisal, giving better

results, and saving management time.

Much of the review has already been covered throughout the year by the time

comes for the formal appraisal.

Frequent review meetings increase the reliability of notes and performance

data, and reduce the chances of overlooking things at the formal appraisal.

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Performance Appraisals Process

For any organization to make it appraisal system effective, one must follow the under-

mentioned procedure, which helps to make an appraisal system effective.

Prepare - prepare all materials, notes agreed tasks and records of performance,

achievements, incidents, reports etc - anything pertaining to performance and

achievement - obviously include the previous performance appraisal documents and a

current job description. A good appraisal form will provide a good natural order for

proceedings, so use one. If your organization doesn't have a standard appraisal form

then locate one, or use the template below to create one, or download and/or adapt the

appraisal forms from this page.

Whatever is used, the necessary approval from the organization should be ensured,

and understand how it works. Paperwork should be organized to reflect the order of

the appraisal and the sequence of items to be covered should also be written down. If

the appraisal form includes a self-assessment section and/or feedback section (good

ones do) this is passed to the appraisee suitably in advance of the appraisal with

relevant guidance for completion. Part of the preparation should also consider 'whole-

person' development - beyond and outside of the job skill-set - as might inspire and

appeal to the appraisees. Many people are not particularly interested in job skills

training, but will be very interested, stimulated and motivated by other learning and

development experiences. The organization should know what the organization’s

people are good at outside of their work. People's natural talents and passions often

contain significant overlaps with the attributes, behaviours and maturity that are

required and valued in the workplace. The organization should use its own

imagination in identifying these opportunities to encourage 'whole-person'

development and will find appraisals can become very positive and enjoyable

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activities. Appraisals are not just about job performance and job skills training.

Appraisals should focus on helping the 'whole person' to grow and attain fulfillment.

Inform - inform the appraisee – ensures that the appraisee is informed of a suitable

time and place (change it if necessary), and clarify purpose and type of appraisal - the

appraisee should be given the chance to assemble data and relevant performance and

achievement records and materials.

If the appraisal form does not imply a natural order for the discussion then provide an

agenda of items to be covered.

Venue - ensures a suitable venue is planned and available - private and free from

interruptions - observes the same rules as with recruitment interviewing - avoids hotel

lobbies, public lounges, canteens.

Privacy is absolutely essential (it follows also that planes, trains and automobiles are

entirely unsuitable venues for performance appraisals).

Layout - room layout and seating are important elements to prepare also – the

organization should not simply accept whatever layout happens to exist in a borrowed

or hired room.

Layout has a huge influence on atmosphere and mood - irrespective of content, the

atmosphere and mood must be relaxed and informal - barriers should be removed.

Introduction - the appraisee should be relaxed. It is the manager’s responsibility to

create a calm and non-threatening atmosphere. He should simply explain what will

happen - encourage a discussion and as much input as possible from the appraisee -

tell them it's their meeting, confirm the timings, especially finishing time.

Asking the appraisee, if there are any additional points to cover and note them down

so as to include them when appropriate, is also appreciable.

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Review and measure - reviewing the activities, tasks, objectives and achievements

one by one, keeping to distinct separate items one by one - avoid going off on

tangents or vague unspecific views. If the appraiser has done his preparation

correctly, he will have an order to follow. If something off subject comes up then he

must note it down. He should concentrate on hard facts and figures, solid evidence -

avoid conjecture, anecdotal or non-specific opinions, especially about the appraisee.

Being objective is one of the greatest challenges for the appraiser - as with

interviewing, resist judging the appraisee in his own image, according to his own

style and approach - facts and figures are the acid test and provide a good neutral

basis for the discussion, free of bias and personal views.

For each item agree a measure of competence or achievement as relevant, and

according to whatever measure or scoring system is built into the appraisal system.

This might be simply a yes or no, or it might be a percentage or a mark out of ten, or

an A, B, C. Reliable review and measurement requires reliable data - if he doesn’t has

the reliable data, he can't review and he might as well re-arrange the appraisal

meeting. If a point of dispute arises, he must get the facts straightened out before

making an important decision or judgment, and if necessary must defer to a later date.

Agree an action plan - An overall plan should be agreed with the appraisee, which

should take account of the job responsibilities, the appraisee's career aspirations, the

departmental and whole organization's priorities, and the reviewed strengths and

weaknesses.

The plan can be staged if necessary with short, medium and long-term aspects, but

importantly it must be agreed and realistic.

Agree specific objectives - These are the specific actions and targets that together

form the action plan. As with any delegated task or agreed objective these must

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adhere to the SMARTER rules - specific, measurable, agreed, realistic, time-bound,

enjoyable, recorded. If not, don't bother.

The objectives can be anything that will benefit the individual, and that the person is

happy to commit to. When helping people to develop, you are not restricted to job-

related objectives, although typically most objectives will be.

Agree necessary support - This is the support required for the appraisee to achieve the

objectives, and can include training of various sorts (external courses and seminars,

internal courses, coaching, mentoring, secondment, shadowing, distance-learning,

reading, watching videos, attending meetings and workshops, workbooks, manuals and

guides; anything relevant and helpful that will help the person develop towards the

standard and agreed task.

Also, the appraiser must consider training and development that relates to 'whole-

person development' outside of job skills. This might be a hobby or a talent that the

person wants to develop. Developing the whole person in this way will bring benefits

to their role, and will increase motivation and loyalty. The best employers understand

the value of helping the whole person to develop. He should be careful to avoid

committing to training expenditure before suitable approval, permission or

availability has been confirmed - if necessary discuss likely training requirements

with the relevant authority before the appraisal to check. Raising false hopes is not

helpful to the process.

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Invite any other points or questions - makes sure to capture any other concerns.

Close positively – The appraiser should thank the appraisee for their contribution to

the meeting and their effort through the year, and commit to helping in any way he

can.

Record main points, agreed actions and follow-up – The appraiser must swiftly

follow-up the meeting with all necessary copies and confirmations, and ensure

documents are filed and copied to relevant departments, (HR, and his own line

manager typically).

Appraisals Timing With Pay Reviews , Performance Awards, And Training Planning

Some people advocate separating appraisals from pay review; however this does not

make sense in organizations which require staff to be focused on their contribution to

organizational performance, especially where there are clear accountabilities and

measures (which in my view should apply in all organizations).

Organizations rightly or wrongly are geared to annual performance, and the achievement

of a trading plan. This cascades to departments, teams and individuals, so it makes sense

to assess people over a time period that fits with what the organization is working to. Put

another way, it's not easy to appraise someone on his or her year's performance half way

through the year. Transparency and accountability are prerequisites for proper assessment

and appraisals.

Arguably 'best practice' is to schedule appraisals close to trading year-end, when year-end

results and full year performance - for individuals and departments and organizations -

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can reliably be predicted. By holding appraisals at this time, and staff knowing that

appraisals are focused on this trading period, people's thoughts and efforts can be

concentrated on their contribution towards the organization's annual trading plan, which

is a main appraisals driver and output (as well as individual development of course).

Holding appraisals after year-end means that people start the year without formal agreed

objectives, and also creates bigger delays for financial and payroll departments in their

task to process pay awards and adjustments.

Departmental, team and individual objectives provide the context for the appraisal,

linking clearly to performance bonus and performance-based pay awards, the rationale

for which needs to be transparent and published prior to the start of the year to which

they relate, for the full benefit and effect on staff effort to be realized.

Pay review would also coincide with the trading year, which makes sense from the

planning and budgeting perspective. The business is in a position to know by the close of

the final quarter what the overall pay review position is because the rationale has already

been (it jolly well should have been) established and year-end financials can be predicted.

Moreover the next year's trading plan (at least in outline) is established, which gives

another useful context for appraising people, especially those (most staff hopefully) who

have contributed to the planning process (i.e., committed as to what they can do for the

coming year, targets, budgets, staffing levels, priorities, objectives, etc).

The appraising managers can therefore go into appraisals fully briefed and prepared to

discuss and explain the organization's overview results and financials to the appraises.

And the appraises can see results and think in terms of their full year performance and

contribution to corporate results, plus what they plan for next year, which provides the

basis of the aims and objectives to be reviewed through the coming year and at the next

year's appraisal.

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THEORY OF PERFORMANCE APPRAISAL

After an employee has been selected for a job, has been trained to do it and has worked

on it for a period of time, his performance should be evaluated. Performance Appraisal is

the process of deciding how employees do their jobs. Performance here refers to the

degree of accomplished of the tasks that make up an individual’s job. It indicates how

well an individual is fulfilling the job requirements.

“Performance Appraisal is a method of evaluated the behaviour of employee in the work

spot, normally including both the quantitative and qualitative aspects of job performance.

It is a systematic and objective way of evaluating both work-related behaviour and

potential of employees. It is a process that involves determining and communicating to an

employee how he or she is performing the job and ideally establishing a plan of

improvement.”

What is Performance Appraisal?

Identification: Means determining what areas of work the manager should be

examining when measuring performance essentially focusing on performance that

affects organizational success.

Measurement: Entails making managerial judgment of how good or bad

employee performance was.

Management: Appraisal should be more than a post-mortem examination of post

events, criticizing or praising workers for their performance in the preceding year.

Instead, it must take a future oriented view of what workers can do to realize their

potential.

PERFORMANCE APPRAISAL AS PMS AT HINDUSTAN

AERONAUTICS LIMITED ORGANOSYS LTD40

PERFORMANCE MANAGEMENT SYSTEM IS ALL ABOUT:

Establishing a shared understanding about what is to be achieved, and it is to be

achieved

A continuous process of everyday actions and behaviors, which individuals take

to manage performance improvement in themselves and others

Increasing the probability of achieving job related success

WHY REVAMP THE PMS AT HINDUSTAN AERONAUTICS LIMITED?

Top Management realized that PMS is a weak link at Hindustan Aeronautics

Limited.

Grievance against the PMS very high among employees.

A need was felt to make changes in old PMS in Hindustan Aeronautics Limited and

for this purpose “GROW TALENT COMPANY LIMITED” did a survey in

Hindustan Aeronautics Limited to know the opinion of employees about PMS so

that necessary changes can be made in PMS and new PMS can be revamped in

Hindustan Aeronautics Limited.

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A workshop was organized to make Hindustan Aeronautics Limited Organosys’

employees effective trainers in the Performance Management System (PMS) and

similar training programs.

OBJECTIVES AND AGENDA OF THE WORKSHOP

“To make myself redundant” was the reply of a manager when asked for his

professional objective. Grow Talent also believes in the same – to help people and

organizations realize their potential and develop internal consulting skill.

The train the trainer workshop is aimed at developing Hindustan Aeronautics Limited

Organosys’ employees to become effective trainers in the Performance Management

System (PMS) and similar training programs.

Each of the employees is aware of certain personal challenges, which obstruct you in

effective communication/ program delivery. We encourage you to come up with a

personal agenda in improving these skills.

THE LEARNING OBJECTIVE OF THE TRAIN THE TRAINER

WORKSHOP IS:

“Participants will be able to conduct training programs in PMS. They will acquire

knowledge of the PMS training design, training methods and skills required for

delivering a PMS training program.”

As members of the core group engaged in carrying the message of PMS activities,

to the members of the organization, all employees will be involved in imparting

new learning.

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In this endeavor employees will be playing a key role in terms of identifying the

development needs and the inputs required by the team, developing effective

vehicles for imparting these inputs and creating continuous learning communities.

This workshop on “Train the Trainer” will develop us to carry out the PMS

awareness programs. The program will provide us with an opportunity to examine

the values, process and approaches in learning with an objective of understanding

our role as trainers and developing skills required for creating learning

communities and delivering learning experiences effectively.

ROLES AND RESPONSIBILITIES:

1. APPRAISEE

To ensure that goal setting is SMARTS and completed within the timelines.

To capture real time data in the critical incidents diary.

To conduct self appraisal with critical incidents and data wherever possible.

To seek and accept periodic feedback.

The appraise can view the appraisal done by the appraiser(s) however the rating

can be viewed only after it has been normalized by the harmonization committee.

To take training inputs inputs for self improvement.

To voice a concern in case one is not satisfied with the appraisal process.

2. APPRAISER

Goals and targets are realistic.

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To ask questions of understanding and help appraise to reflect better in round one

appraisal.

To provide his perspective on the appraisal to the Reviewer.

To discuss appraisals in the Harmonization Committee; get feedback and finalize

rating.

To give consolidated feedback to appraise to provide consistency feedback on

KRA.

Justify exceptionally high and low ratings.

3. REVIEWER

Reviewer provides inputs on the appraisal forms duly filled by the appraisee and

appraiser. He ensures there has been no bias, positive or negative, in the appraisal. If

needed he can seek inputs from internal customers/ suppliers once again (may/ may not

be the ones contacted by the appraiser). He also checks for internal parity in ratings.

4. INTERNAL CUSTOMER/ SUPPLIER

To bring in perspective from a customer’s/ supplier’s point of view.

To provide unbiased and balanced inputs on an appraisee’s performance.

5. HEADS OF DEPARTMENTS

To provide normalized ratings to HR.

All escalated cases of grievances after Appraisal process to be sent to HR.

6. HR

All escalated cases of grievances to be studied and compiled by HR.

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HR to escalate grievances cases further to the Harmonization Committee.

7. HARMONIZATION AND TALENT REVIEW COMMITTEE

Decide on rewards/ kitty etc.

Moderate inter- functional issues/ ratings/ inconsistencies.

Separate Harmonization & Talent Review committee for DGMs and above.

Executive Directors and President HR to be a part of the committee. Business

Unit level moderation to be done involving leadership team at the unit.

Enforcing bell curve for rating, to be clearly communicated to all appraisers at

Manager Level and above. This is not applicable for specialist functions.

PMS AT HINDUSTAN AERONAUTICS LIMITED- KEY OBJECTIVES

A very critical aspect of the new Performance Management System is

Performance Planning. Typically, in most organizations, employees are put on the

job without giving them a perspective of the importance of their job and its

linkage to the larger scheme of things. Also, their opinion on whether or not they

would be able to accomplish the task assigned to them is never sought, and

neither are they asked about the resources that would enable them to succeed.

This forced allocation of work affects the employees in two ways. Firstly, it does

not bring about a natural buy- in from the employees. Secondly, it does not take

into consideration an employee’s strength, areas of development and interests,

which may render the task all the more difficult to achieve. To avoid this, the

system focuses on proper performance planning for the organization, which will

be cascaded down to the individuals.

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The most remarkable feature of performance planning in the new system is the

horizontal and vertical alignment of individual goals to those of the organization.

This enables employees to appreciate the way in which they are linked with the

Others in the organization, and how one’s contribution helps others and is also

helped by others. Horizontal and vertical alignment of goals also brings to the

fore, any overlaps that might exist on the organization.

The new system would facilitate accountability in the organization because of the

following reasons:

Participative goal setting would ensure ownership by the employees.

One has the opportunities to articulate the resources and support

required to achieve his/ her goals. This creates a scope for negotiation

between employee and supervisor and/ or his/ her peer group and thus

is likely to make goals more realistic.

The Performance Management System throws out the areas of development for

employees, which should be addressed so as to ensure the same mistakes are not

repeated the next time. HR should thus, utilize this system to identify the learning

needs of people.

Performance Management System cannot succeed as a stand alone system. It

reveals important insights, which should keep getting linked to the other HR

systems. Training is an example. Rewards and Recognition is another very

obvious example. Career or Succession planning would also use inputs from

Performance Management System. Likewise, most HR systems should be linked

to it.

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THE CYCLE OF PERFORMANCE MANAGEMENT

Figure (2) Cycle of Performance Management

1. ESTABLISHING MUTUAL EXPECTATION- This makes appraisees cognizant

of what is expected of them, and also gives them an opportunity to express what they

expect from their supervisors, peers and sub- ordinates in order to successfully meet

expectations. This stage can easily be called the foundation of Performance

Management. If this stage is not handled effectively, it would lead to a mismatch of

the definition of “Performance” in the minds of the appraiser and the appraisee, which

would become evident towards the end of the cycle when the appraisal is done.

2. OBSERVE AND MEASURE- This would enable the appraisee to seek guidance

from the appraiser wherever required, and accelerate his progress towards his goals.

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Observe & Measure

Establish MutualExpectations

Guide, Coach and Correct

Evaluate, Feedback& Document

Train and Develop

PerformanceManagement

Cycle

1

2

3

4

5

Recognize and Reward

6

This would also keep the appraiser informed of the developments, and prevent any

rude shocks to both of them at the time of appraisal.

3. GUIDE, COACH AND CORRECT- Appraiser should guide, coach and correct the

appraisee through the year, so as to facilitate his accomplishing targets. The appraiser

should not wait for the annual appraisal to point out the appraisee’s mistakes and

provide guidance. This is a key part of his responsibilities as a supervisor, and should

be done on a continuous basis.

4. EVALUATE, FEEDBACK AND DOCUMENT- It is also expected of the

appraiser to evaluate the progress made by the appraisee after a pre-defined period

(mid year review, annual Review etc), and provide him constructive and

developmental feedback. This feedback should be documented in the system, and

accessible for future use.

5. REWARD AND/ OR RECOGNITION- After having gone through the entire

Performance Management Cycle, it is natural for the appraisees to expect some

“Reward and/ or Recognition” for their efforts and performance. This can be

monetary i.e. in the form of performance pay, bonus, increments etc; or non-

monetary i.e. Best performer trophy, employee of the year award etc. Of course, it

can be a combination of the two. Reward and Recognition is an obvious fall- out of

the Performance Management System, and ensures that the motivation levels in the

organization are maintained. Also, it is critical for any organization to be perceived as

fair by their employees. This again reinforces the need for a visible linkage of

Performance Management System with the Rewards and Recognition framework.

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1. TRAIN AND DEVELOP - Lastly the Performance Management System brings

out a lot of data with respect to the learning needs of individuals. In today’s era,

when Capability Building has become the key to retain employees, no

organization can afford to overlook this data. Appraisee wants to know what the

organization would do to bridge the gap between expectation and performance.

Therefore training and development also becomes a fall- out of the Performance

Management System. This would not only keep the employee morale upbeat, but

also equip them to give better performance in coming years.

PMS PROCESS FLOW

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Figure (3) PMS Process Flow

50

Reward & Recognition System

Potential Development

System

Learning & Development

System

Performance Monitoring

Data capturing

Organization KRA Setting – Strategic Planning/ Annual Budget setting

Individual KRA Setting

Performance Planning

1

Feedback & Coaching Session

Self-Appraisal

Performance Dialogue with Appraiser 1

Appraisee / Appraiser seeks feedback from Internal Customers

Annual Appraisal

Performance Dialogue with Appraiser 2

Harmonization & Talent Review Committee

Reviewer

Feedback Discussion With Appraiser

Performance Review

3

Self-AppraisalMid Year Review

Modification of goals

2

4 5 6

FOLLOWING ARE THE THREE KEY STAGES OF THE SYSTEM:

1. Performance Planning

2. Performance Monitoring

3. Performance Review

The boxes 4, 5 and 6 shows the other HR systems which draw inputs from the

Performance Management System.

PERFORMANCE PLANNING - Performance Planning is all about goal setting – for the

organization as well as individuals. A goal can be defined as a statement of intent. It is

basically a commitment from the appraisee on what he would achieve within a specified

time period. Of course, this commitment cannot be in isolation of what the organization,

and the appraisee’s department, commits to achieve within the said time period.

Therefore, there has to be a clear linkage between the goals of the organization’s goals

and the goals of each and every employee of the organization. This would start from

organizational level and flow to the individuals. In other words, the first step would be to

articulate what the organization wants to achieve in the given time period, and what are

the strategic initiatives it would undertake to achieve the same. Once, this is frozen, only

then would the individuals formalize the goals. This would enable each and every

employee to see the connection between his goals and the goals of the organization.

Performance Planning is all about goal setting- for the organization as well as individuals.

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A GOAL is a statement of intent, describing situation or condition that will be

achieved in a specific time frame. Goals tell a person what he/she needs to

achieve and how much effort needs to be extended.

Figure (4)

TOOLS OF PERFORMANCE PLANNING

1. BALANCED SCORE CARD -Developed in the early 1990s by Dr. Robert

Kaplan and David Norton, Balanced Score card is a management system that

enables organizations to clarify their vision and translate them into action. The

balanced scorecard retains traditional financial measures and also provides a clear

prescription as to what companies should measure in order to ‘balance’ the

financial perspective. Financial measures tell the story of past events, an adequate

story for industrial age companies for which investments in long- term

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Cascade of BU/ Functional level score card through a one day exercise

BU Heads and Function Heads set their individual KRAs in the Balanced Scorecard format (only upto Sec In Charge level)

These KRAs further cascaded using Hoshin Kanri approach

Service Level Agreements between Business Unit and/or Functions

Annual Business Planning

BU/ Functional level Balanced Scorecards

Define Service Level Agreements between departments

Cascade of the scorecards using the Hoshin Kanri Approach

Identify significant Internal Customer/Supplier

capabilities and customer relations were not critical for success. The balanced

score card, thus, suggests that we view the organization from four perspectives,

and to develop metrics, collect data and analyze it relative to each of these:

i) THE FINANCIAL PERSPECTIVE - Financial success will always be a

priority, and managers will do whatever necessary to achieve it. This can be

measured through increase in revenue, decrease in costs, profitability, return

on investments etc.

ii) 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 this perspective is thus a leading

indicator of future decline, even though the current financial picture may look

good.

iii) THE INTERNAL 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.

iv) THE LEARNING AND GROWTH PERPECTIVE - This perspective

includes employee training and corporate culture attitudes related to both

individual and corporate self- improvement.

The Balanced Scorecard would be applicable to employees above Section In Charge level

only. This is because at lower levels, a balanced approach may not be very impact. For

Section In Charges and above, it is mandatory to have at least one KRA in each of the

four Balanced Scorecard perspectives. The weightage allotted to any perspective cannot

be less than 10%.

2) VERTICAL ALIGNMENT OF GOALS- HOSHIN KANRI- As discussed above, the

organization goals would be cascaded down to the individual level as per the new

53

performance management system. The methodology used for this is called “Hoshin

kanri” which is a well known approach for strategy deployment. This methodology very

visibly links the goals of the organization to the goals of the individual.

According to this approach, there are four critical parts of a goal statement:

i) What needs to be done

ii) How would it be done

iii) Who would do it

iv) By when would it be done

Hoshin Kanri cascades the organizational goals to individuals through converting the

“How’s” of one level to be the “What’s” of the second level and so on.

An employee can have 6 – 10 KRAs.

KRAs can be team based also, if it is felt that an individual would not be able to

take accountability for a specific initiative.

Each KRA would have a weightage of minimum 5% and maximum 30%.

The total weightage of any Balanced Scorecard perspective cannot be less than

10%.

The goals of the organization would be set in the month of May every year. In

that respect, the month of May would be designated as the “Goal setting Month”.

For any person joining the organization in the months of June – December, his /

her supervisor and entered in the automated system, for it to be considered final.

SMARTS GOAL SETTING:54

Goals cannot be vague statements. Each and every goal needs to pass the SMARTS

test, which is an acronym for:

S- Specific

M- Measurable

A- Agreed

R- Realistic

T- Time Bound

S- Stretch

3) IDENTIFYING KEY INTERNAL CUSTOMERS/ SUPPLIERS- It has the following

important points:55

SMARTSGOALS

SPECIFIC

MEASURABLE

AGREED

TIME BOUND

STRETCH REALISTIC

i) Appreciation of inter-dependencies between departments and eliminates the risk of

appraisal bias to a large extent.

ii) Identification of key internal customers/ suppliers during Goal setting process

iii) Their feedback documented during Mid Year as well as Annual Appraisal

iv) Due consideration given to their feedback while deciding on the final rating for the

appraisee.

4) HORIZONTAL ALIGNMENT THROUGH SERVICE LEVEL AGREEMENTS-

Service level agreements is a formal negotiated agreement between two parties. Typically

it is a contract that exists between customers and their service provider, or between two

or more service providers.

SLAs serve the purpose of acknowledging inter- dependencies between Business units

and functions. Contracting of SLAs provide a forum to table grievances and

disappointments from other units/ departments, which an opportunity to collectively

arrive at solutions to the stated problems.

The service level Agreements would be contracted at the Business Unit/ Function Head

level. However, the entire Business Unit and/ or Function would be bound by the SLA.

Adherence to SLAs would have 5% weightage in the Performance Management System.

ASSIGNMENT OF WEIGHTAGES

56

Table (2) Assignment of Weightage

At the time of goal setting, there are five simple checks that need to be carried out, to

ensure that the goals are made in the right fashion:

1. No. of goals between 6 – 10

2. At least one goal in all four perspectives.

3. The sum of weightage to be equal to 100

4. All goals to have minimum 5% and maximum 30% weightage.

5. All perspectives to have a weightage of at least 10%

Now that the goals meet the basic criteria, a SMARTS check needs to be conducted on

the goals by the appraiser/ HR. This is to ensure objectivity and common understanding

in the minds of the appraisee and the appraiser at the time of appraisals and feedback.57

100%C

15%Goal #715%Goal #6Learning &

Growth

10%Goal #510%Goal #4Internal Process

20%Goal #3 Customer

20%Goal #210%Goal #1Financial

WeightageGoalsCategory

PERFORMANCE MONITORING- The system recommends continuous performance

monitoring, completely backed by data. The system has two critical aspects to it- KRAs

and Competencies. Performance needs to be monitored on both these aspects. Both the

appraiser and the appraisee should maintain records of the appraisee’s exceptional

achievements or slip- ups and positive and negative behaviors displayed by them through

the year. This would address the Recency Error in appraisals – where the appraisal for

whole year is colored by the most recent performance of the appraisee.

For this purpose, a critical incident diary would be accessible online to both the appraiser

and the appraisee.Both of them can record positive or negative instances relating to

KRAs and/ or competencies. The appraiser and the appraisee should discuss this diary in

person every month to take stock of things on a regular basis and facilitate the

achievement of goals by the appraisee. In addition, it would also act as a memory

refresher at the time of midyear and annual appraisals.

PERFORMANCE REVIEW- Performance review is sub divided into two parts:

58

1) Midyear review

2) Annual review

1) MID YEAR REVIEW

Figure (5) Mid Year Review

This is an opportunity for the appraiser and the appraisee to meet up in the middle of the

year and take stock of how things are going. This would also be the time to realistically

evaluate the goals, bearing in mind the business priorities, and make additions and/ or

deletions in the goals if required.

2. ANNUAL REVIEW-

59

HR to initiate reminders for the review process

Appraisee completes self – appraisal

Review discussion between appraisee and appraiser

Mid Year Feedback by 2 Internal Customers

Appraiser discusses appraisee’s progress and provides feedback

Appraiser and appraisee agree on a corrective action plan in case progress is below expectations

Appraiser and appraisee may decide to change / modify the KRA’s on the basis of change in business conditions. Any such change will need to be validated by approving authority

Business Unit Head is the Approving authority for the changes in KRAs

Figure (6) Annual Review

The annual appraisal would involve evaluation of an appraisee at four levels, to ensure

there is no bias in the appraisal. First level would be the appraisee himself/ herself;

second would be his appraiser (s) along with the internal/ external customers the

appraisee interact with; third would be a Reviewer, who would typically be a Business

Unit or Function. Head; and finally a Harmonization and talent Review Committee,

which would comprise the Executive directors and the Head HR. On completion of this

process, ratings would be communicated to the appraisee and detailed feedback would be

provided.

60

HR to initiate reminders for annual appraisal

Appraisee to complete self – appraisal

Appraiser has a discussion with appraisee to understand appraisee’s perspective and rationale behind self appraisal

Appraiser notes his/her rating and comments. Second Appraiser (if any) also fills in rating & comments independently

Reviewer seeks inputs from the internal customers (if required) and the appraiser (s) and mentions his comments

Harmonization & Talent Review Committee study and rate all reviews. The ratings of the committee will be final

Communication of the final rating to the appraisee by the appraiser with detailed feedback and joint sign off on a developmental plan

Appraiser to seek inputs from 2 internal customers

Performance data to be recorded and tracked by appraisee and updated on IT system

Potential Assessment through ratings on Competency Framework

Harmonization & Talent Review Committee to comprise of EDs and Head HR

All escalated cases of grievances to be sent to HR. HR to reconvene the Harmonization and Talent Review Committee for all grievance issues for the year

BU and Function Heads to provide forced ranking of their team to HR

RATING SCALE

Each KRA would be rated on a scale of 1 to 6, 1 being the lowest and 6 being the highest.

The scale is defined as shown:

Figure (7) Rating Scale

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1 – Consistently doesn’t meet expectations

2 – Doesn’t meet expectations

3 – Meets expectations

4 – Exceeds expectations

5 – Significantly exceeds expectations

6 – Consistently and significantly exceeds expectations

SCORING OF KRAs

We are now familiar with the 6 point rating scale to be used for scoring of goals. Now, at

the stage of Annual Appraisal, Let us see how the goals are scored. The score arrived at is

a multiplication of the weight with the rating. The bottom most cell gives the formula for

the overall rating. It is calculated by adding the score (305), and dividing them by the

sum total of weightage i.e. 100%, to get an overall score of 3.05.

Table (3) Scoring of KRAs

62

= 305/100 = 3.05

100%45315%Goal #7

30215%Goal #6Learning & Growth

40410%Goal #5

20210%Goal #4Internal Process

60320%Goal #3Customer

80420%Goal #2

30310%Goal #1Financial

ScoreRatingWeightageGoalsCategory

MODIFICATION OF KRAs

THERE CAN BE THREE ALTERNATIVES FOR MODIFYING KRAs:

1. Addition of new KRA(s)

2. Deletion of KRA(s)

3. Addition and Deletion of KRA(s)

IN ALL THESE CASES:

The sum of weightages should not exceed 100%. Therefore, a revision of the

weightages of other KRAs would be required.

Whenever a KRA is dropped or accomplished before time, the supervisor’s

feedback and rating is documented.

At the of Annual appraisal rating. Weightages for dropped goals are also

considered (Ideally, weighted average method should be followed, but since it

complicates the system without having any significant impact, it has been

avoided.)

In the event of modification in KRAs, the concerned Business Unit/ Function

head’s approval is required. This is because change in one person’s KRAs might

impact many others.

63

MODIFICATION IN KRAs – EXAMPLE

Table (5) Modification in KRAs examples

64

= 345/120=2.88

45315%Goal #7

30215%Goal #6Learning &

Growth

40410%Goal #5

20210%Goal #4Internal Process

40220%Goal #8

60320%Goal #3Customer

80420%Goal #2

30310%Goal #1Financial

ScoreRatingWeight age

GoalsCategory

Assume Goal 2 got dropped at the time of Mid Year Review due to change in the market

conditions. The rating and feedback of the appraiser on goal 2 is documented at the time

of Mid Year (which is when this goal was dropped). Also, at the time of Mid Year

Review, Goal 8 got added. Please note that the sum of weightages still remains 100%

(100- 20 + 20).

The appraisee had been performing very well on Goal 2 (a rating of 4 on 6). However, at

the time of annual appraisal, his performance on Goal 8 was considered below average (a

rating of 2 on 6). To acknowledge the effort put in by the appraisee towards goal 2, which

got dropped for no fault of his, the scoring would be done considering this goal also. This

is why the last cell shows a score of 345 over 120, and an overall rating on 2.88.

COMPETENCY FRAMEWORK65

Figure (8) Competency Framework

Competencies are a combination of knowledge, skills and attitudes required to succeed in

a given role. Assessment and development of competencies has become the key focus

area for many organizations. The system aims to conduct a potential Appraisal through

the competency framework so defined.

The process of arriving at the competency framework involves careful understanding of

the vision, mission and values of an organization, and the culture prevalent there.

Competencies can be classified into Core and Role specific. Core competencies are those

which are fundamental to the organization. They are applicable at all levels and in all

roles across the organization.

66

Competencies are the combination of knowledge, attitude and skills required

to succeed in a given role / situation. Competency can be developed and

hence focusing on them allows individuals and organizations to become more

effective and successful

Vision Mission Values Operating

Environment

Competency List

Core competencies

Role SpecificCompetencies

Competency Construct

Definition Description

ThemesPositive / negative

Descriptors

Linkage with HR

systems

AT HINDUSTAN AERONAUTICS LIMITED, THERE ARE SIX

COMPETENCIES IDENTIFIED AS CORE, AND FOUR OTHERS ARE

ROLE- SPECIFIC

COMPENTENCY FRAMEWORK

Figure (9) Competency Framework Rating Scale

67

Core Passion for Quality People DevelopmentIdea LeadershipCustomer First Execution Excellence Entrepreneurial

Thinking

Execution Level 1

Professional Expertise

Managerial Level 2

Making the Right Choices

Leadership

Level 3Strategy in

Action Managing

Diversity

The earlier level competencies are pre requisites for the later ones.

Rating Scale

1 – Negative Impact

(Conscious Incompetence)

2 – Struggler (Unconscious Incompetence)

3 – Eager Novice

(Learner)

4 – Competent (Adequately displays the competency

)

5 – Proficient (On his way

to be an authority)

6 – Accomplished

(Role Model)

COMPETENCIES ARE AS FOLLOWS:

1. PASSION FOR QUALITY:

THEMES:

Doing things first time right.

Driving continuous improvement.

Building quality into product/ service.

Staying focused on business and customer goals.

DEFINITION

The ability of an individual whereby he/ she builds quality into product/ service and

drives continuous improvement while staying focused on the business goals.

DESCRIPTION

Passion for Quality starts from a complete understanding that others have from us and

building others expectations into our work. To ensure that the work is carried out as per

the detailed guidelines and procedures without deviating from the standard norms. This

includes doing things first time right by taking actions after checking the accuracy of

data. Passion for Quality is an approach and is reflected in the way we think, plan and

execute our work

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2. TALENT DEVELOPMENT/ PEOPLE DEVELOPMENT:

THEMES

Building people capability for higher performance

Enabling development by providing challenging opportunities

Giving feedback and coaching regularly

Helping people to realize their true potential

DEFINITION

The capability of an individual to recognize the right talent and encourage growth and

development of people. This will help build a learning environment for self and others.

DESCRIPTION

People orientation is the ability to help everyone around realizes their true potential. This

is done by helping them to appreciate their strengths as well as weaknesses and enable

their development by providing challenging opportunities, giving feedback and coaching

regularly.

3. IDEA LEADERSHIP

THEMES

Thinking out of the box.

Taking calculated risk and learn from mistakes.

Looking at best practices within and outside the company and adopting to the

requirements.

Encouraging newer and untested ideas from team members.

69

DEFINITION

The ability of an individual to continuously improve his or her work through new ideas

and take accountability for implementation, leading to business results/ excellence.

DESCRIPTION

Innovation and creativity includes having an open and mindset, willingness to accept

change by looking at best practices across industries and businesses and adapting to the

local context. Capacity to think “out of the box” and think afresh. It also includes

calculated risk and learn from mistakes. Ability to question the status quo and embrace

change. Accept ideas of team members & encourage them for newer & untested ideas.

4. CUSTOMER FIRST:

THEMES

Delivering the promise.

Delighting customers by consistently exceeding expectations.

DEFINITION

The ability to proactively and consistently identify and understand needs of existing, as

well as potential, internal as well as external customers, and consistently exceed their

expectations. Meet the promised commitment.

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DESCRIPTION

Build a successful long- term relationship with the customer through continuous efforts.

Identify and understand customer needs accurately and translate the same into action

plans. Identify and track measures to ensure customer ‘delight’ both internally as well as

externally. Generally trust and win confidence of customers.

5. EXECUTION EXCELLENCE:

THEMES

Delivering results at the agreed time and cost.

Overcoming roadblocks and course correction.

Not comprising with quality during delivery.

DEFINITION

The ability to deliver results as per the job and role expectations with high and increasing

standards of performance.

DESCRIPTION

Ability to continuously identify opportunities for improvement. Sets well defined goals &

priorities. Tracks and evaluates performance Leverage all possible resources towards

timely and flawless delivery of expected output whilst maintaining process rigor.

71

6. ENTRTEPRENEURIAL THINKING:

THEMES

“Bucks stops with me” orientation/ End to end responsibility.

Thinking from a business perspective while taking complete ownership for ideas

and actions.

Calculated risk taking.

DEFINITION

The characteristic of an individual to think from a business perspective while taking

complete ownership for his/ her ideas and actions.

DESCRIPTION

Commitment towards organizational goals by owing responsibility for one’s own as well

as one’s team performance. To build a sense of ownership among the team members too.

Entrepreneurial thinking requires one to treat their area of operation as if the buck stops

with them and take complete charge for every thought and action.

7. PROFESSIONAL EXPERTISE:

THEMES

Updated functional and industry knowledge.

Providing guidance and expertise to others to address functional problems.

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DEFINITION

The ability to enable appropriate solutions through the use of relevant technical and

professional skills and/ or knowledge.

DESCRIPTION

Has an in depth and up to date knowledge in functional area

. Has the ability to draw from past relevant knowledge, experience and data and

apply the learning effectively to the present job.

Is able to provide guidance and expertise to others to address functional problems

at own or others work areas. Is aware about current trends in respective area.

8. MANAGING DIVERSITY

THEMES

Cross Culture sensitivity.

Managing Conflict.

Global perspective.

Handling Ambiguity.

Synergizing different cultures, teams and businesses towards a common goal.

73

DEFINITION

The ability to understand and manage different cultures, teams and business

constructively for business purposes.

DESCRIPTION

Managing Diversity starts with recognizing that different businesses, clients, vendors

may have a diverse culture with some commonalities. This competency addresses a need

to build synergies in this diversity for business purpose. This requires appreciating

different cultures, displaying sensitivity towards the divergent groups and contributing

towards making it one cohesive entity working towards a common goal.

9. STRATEGY IN ACTION:

THEMES

Visualizes long term impact.

Coherence and Big picture perspective.

Ability to create alternative and win- win collaborations.

DEFINITION

The ability to provide solutions from a long term perspective with due consideration to

the impact of decisions on the organization and the environment.

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DESCRIPTION

Plans for future business opportunities by evaluating and selecting strategies,

Demonstrates a global mindset. Develops alternatives based on logical assumptions,

facts, available resources, constraints, and organizational values. Build strategic alliances

to deliver breakthrough technologies. Develop and use collaborative relationships with

strategic partners to facilitate the accomplishment of business goals.

75

THE FEEDBACK PROCESS

Figure (10) Feedback Process

The feedback process should be able to guide the appraisee to the right track. The key

skills required to give feedback can be enumerated as below:

CONCRETENESS - Helping the appraisee choose specific goals and the means to

achieve these goals.

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Describe Current Behaviours That needs

reinforcement or redirection

Identify Situations

WhereThe appraisee

displayed these behaviours

Describe Impact and

ConsequenceOf the current behaviours

Identify Alternative Behaviours

And actions for the appraisee

I

II III

IV

CONFRONTATION - Helping the appraisee to observe and realize the limitations

and constraints (both physical and mental) coming in the way of achieving the

desired result and realizing the discrepancy between things he/ she has been

saying and doing, i.e. the gap between saying and doing.

SELF DISCLOSURE - It is the art of sharing one’s own personal stories,

experiences, and insights with others. The appraiser shares his/ her own

experiences and insights with the appraisee. It helps the appraisee views the

problems from the appraiser’s perspective. Self disclosure also builds a trusting

relationship.

Appraiser should keep in mind the following things, to ensure the feedback is

effective:

Creating trust and cooperation.

Maintaining a developmental perspective instead of a judgmental perspective.

Acknowledging appraisee’s feelings.

Communicating belief in the ability of the appraisee to improve and excel

Resulting in identification of practical steps for improvement.

Checking for understanding.

Encouraging appraisee to assess his/ her own performance.

Offering support for the future.

Ensuring mutual agreement .

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RESEARCH OBJECTIVES78

The objectives of any research define purpose for which research is taken up.

It specifies the goals to be achieved.

The objective is “to find out how well the employee is performing the job and

establish a plan for further improvement .”

RESEARCH METHODOLOGY

It is the framework or plan for a study that is used as a guide in collecting and analyzing

the Data.

In other words “A research design is the arrangement of conditions for collection and

analysis of Data in a manner that aims to combine relevance to the research purpose with

economy in procedure”.

My research design is of descriptive type. A descriptive research includes survey

fact finding and enquiries of different kinds with a major purpose of description of affairs

as it exist in present.

DATA COLLECTION:

In the method of data collection, I have used both primary as well as secondary data

collection methods.

Primary data may be described as those data that have been observed and recorded by

the researcher for the first time to their knowledge. It is original in nature. The form of

primary data which is used in this research for data collection is Questionnaire method.

The term questionnaire refers to a self- administered process where by the respondent

himself/ herself read the questions and records his/ her answer without the assistance of

an interviewer.

79

Secondary data are statistics not gathered for the immediate study at hand but for some

other purposes. It is defined as the data which is available in the form of facts and figure.

The various sources of the Data are company manuals, employee records, books,

magazine, company website and other related websites.

SAMPLING

Universe - all employees in Hindustan Aeronautics Limited Organosys Ltd.

Sample size- 40 employees

Population-employees from departments such as HR, Production, Engineering, R&D.

ANALYSIS OF DATA

The data after collection have to be processed and analyzed .I have analyzed the data

with the help of graphical method

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ANALYSIS AND INTERPRETATION

1) Satisfaction level with the new PMS.

Figure (11)

Most of the people are satisfied with the new PMS but still some are there who are

less satisfied.

HR- 80% say yes and 20 % say no

Prod.- 65% say yes and 35% say no

Eng.- 75% say yes and 25% say no

R & D- 85% say yes and 15%say no

81

2. Satisfaction level with online system for PMS.

Figure (12)

Yes online system for PMS seems satisfactory to a large extent

HR- 85 % say yes and 15 % say no

Prod.- 70% say yes and 30% say no

Eng.- 80% say yes and 20% say no

R & D- 90% say yes and 10% say no

82

3) Satisfaction level with the system of critical incident diary.

Figure (13)

Very large no. of employees are satisfied and highly satisfied with the critical incident

diary

HR- 40% are satisfied and 45% are highly satisfied

Prod.- 55% are satisfied and 40% are highly satisfied

Eng.- 50% are satisfied and 50% are highly satisfied

R & D- 30% are satisfied and 65% are highly satisfied

83

4) Performance of Balanced Score Card as a right tool for managing the

performance.

Figure (14)

Most of the employees think that balanced score card is a right approach for managing

the performance.

HR- 95% say yes and 5% say no

Prod. - 80% say yes and 20% say no

Eng. - 85% say yes and 15% say no

R & D. - 75% say yes and 25% say no

84

5) Usefulness of KRA’s in measuring the performance.

Figure (15)

Most of the employees think that KRA’s are moderate for measuring the performance

HR- 80% say KRA’s are moderate

Prod.- 85% say KRA’s are moderate

Eng.- 90% say KRA’s are moderate

R & D.- 75% say KRA’s are moderate

85

6) Appropriation level of Hoshin kanri approach for cascading goals.

Figure (16)

Most of the employees think that hoshin kanri approach is very appropriate for cascading

goals

HR- 35% say appropriate and 55% say very appropriate

Prod.- 45% say appropriate and 55% say very appropriate

Eng.- 40% say appropriate and 55% say very appropriate

R & D- 40% say appropriate and 55% say very appropriate

86

7) Satisfaction level with the recruitment & selection process in Hindustan

Aeronautics Limited.

Figure (17)

Most of the employees are satisfied with the recruitment & selection process in

Hindustan Aeronautics Limited though some are less satisfied

HR- 90% say yes and 10% say no

Prod.- 95% say yes and 5% say no

Eng.- 80% say yes and 20% say no

R & D.-70% say yes and 30% say no

8) 40% deduction from salary as HR is decreased.87

Figure (18)

Most of the employees are of the view that 40% deduction should be decreased

HR- 95% say yes and 5% say no

Prod.- 95% say yes and 5% say no

Eng.- 90% say yes and 10% say no

R & D.- 95% say yes and 5% say no

88

9) Is the recruitment through employee referral justified?

Figure (19)

Large no. of employees think that recruitment through employee referral is justified

HR- 75% think it is justified

Prod.-80% think it is justified

Eng.-95% think it is justified

R & D- 75% think it is justified

89

10) Satisfaction level with the salary package offered at the time of recruitment at

different levels.

Figure (20)

In the case of salary package some are satisfied but some are not

HR- 65% say yes and 35% say no

Prod.- 50% say yes and 50% say no

Eng.- 55% say yes and 45% say no

R & D.-70% say yes and 30% say no

90

11) Recruitment & selection process fulfills the requirement of organization.

Figure (21)

Most of the employees think that recruitment & selection process fulfills the requirement

of the organization moderately

HR- 80% say it is moderate

Prod.- 90% say it is moderate

Eng.- 95% say it is moderate

R & D.- 75% say it is moderate

91

12) Formalities after the recruitment & selection process.

Figure (22)

A large no. of employees think that joining formalities are appropriate

HR- 35% say appropriate and 55% say very appropriate

Prod.- 45% say appropriate and 55% say very appropriate

Eng.- 40% say appropriate and 55% say very appropriate

R & D.- 55% say appropriate and 35% say very appropriate

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FINDINGS

PMS is a weak link at Hindustan Aeronautics Limited that’s why changes were

made in PMS.

Grievances against the PMS were very high in Hindustan Aeronautics Limited.

Now employees are fully satisfied with PMS.

Current system is transparent and unbiased.

Balanced scorecard will be used to clarify the vision and strategy of organization

and translate them into action.

There are 16 employees above the age of 50 and close to retirement.

Maximum numbers of employees in the organization is young and are in the age

of 20 to 40. The young employees figure out to be 60%, of the total strength.

Maximum numbers of employees presently working in the organization are fully

experienced and some of them are newly joined employees.

Graduate engineer trainees and management trainee will be selected through

campus interview from the reputed colleges.

GET’s – (graduate engineer trainees)

1. IIT Kanpur.

2. IIT Delhi

3. IIT Mumbai

4. HBTI Kanpur

5. Punjab University

6. IET Lucknow

7. BITS Pilani

MT’s – (management trainees)

1. Symbiosis

2. IMT Ghaziabad

3. XISS Jamshedpur

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SWOT ANALYSIS

STRENGTH

International Distribution.

Good Company Image.

Well trained and experience workers and executives are

available.

The Company is amongst the global leaders in the manufacture

and development of Pyridine and Pyridines derivatives , Fine

chemical.

WEAKNESS

Locational issues.

Accommodations problems.

OPPORTUNITY

High growth rate for Fine chemical and agri products.

Gajraula in (U.P.) plant has Hindustan Aeronautics Limited

largest manufacturing location in India.

THREATS

• High growth of competitor’s products.

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RECOMMENDATIONS AND SUGGESTIONS

Employers should be less biased about the recruitment of employees through

employee referrals.

More awareness should be provided to employees through awareness programs

conducted about PMS.

The deduction of 40% from salary as HR should be decreased.

New PMS can be more popular among employees by giving proper training to

employees once in a month.

95

CONCLUSION

The project was done with a certain objective in mind and the main aim of the same was

to gather information regarding the company’s practices and procedures regarding the

“Performance Management System and Recruitment and Selection Process”.

With the feedback received from the subordinates and from the higher level management,

I found that the “recruitment and selection” in every organization is a very important part

as the success of any organization depends upon the hard work and full contribution of

the individuals and it also depends on good recruitment. Therefore, it is concluded that in

order to achieve higher targets and productivity a well planned and systematic training

program should be continuously prepared and implemented so that the employees

working with the organization could be updated from time to time.

A right process of performance appraisal for right evaluation of the performance of the

employees is very important. The method of performance management should be

unbiased and transparent so that no mistake can take place at the time of goal setting and

setting of KRAs. KRAs are the important element of the Performance Management

System at Hindustan Aeronautics Limited. Performance of an employee is measured on

the basis of goals achieved by him. So it is very important to adopt a organized

Performance Management System.

The management of the company is very careful about the modern practices in the

company. They analyze the skills of the subordinates and worker to recruit the

subordinate, which helps them in keeping pace with the changing environment.

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LIMITATIONS

While the employees gave full co- operation during the collection of the Data required for

the study of the constraint were:

It was not possible to carry out interview with every worker, as most of them were

busy with their production schedule. However, with due co- operation from the

executives it was possible to convince most of the workers and obtain information

through questionnaires.

Some employees gave the information verbally but were reluctant to give in

writing.

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BIBLIOGRAPHY

Devis & Keith – Human Behaviour at Works: Organizational Behaviour

(Tata McGraw Hill, New Delhi , 2008).

Robbins, S. P. – Organizational Behaviour (Pearson Education, New Delhi).

Luthans, Fred – Organizational Behaviour (McGraw Hill) 1998, New Delhi.

Aswathapa – Human Resource Management (Tata McGraw Hill) HR and PM.

www.hal_india.com

www.google.com

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APPENDIX QUESTIONNAIRE

Performance Appraisal in HAL

Name: Grade:

Designation: Age:

1) Are you satisfied with the new PMS?

Satisfied

Less satisfied

2) Does online system for PMS seem satisfactory?

Yes

No

3) How much are you satisfied with the system of critical incident diary?

Not satisfied

Satisfied

Highly satisfied

Neutral

4) Is Balanced Score Card a right tool for managing the performance?

Yes

No

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5) To what extent KRA’s are useful in measuring the performance?

. Low Moderate High

6) Is hoshin kanri approach appropriate for cascading goals?

Not appropriate Appropriate Very appropriate

7) Are you satisfied with the recruitment & selection process in Hindustan

Aeronautics Limited?

Yes No

8) Should the 40% deduction from salary as HR be decreased?

Yes No

9) Is the recruitment through employee referral justified?

Not justified

Justified

Highly justified

10) Are you satisfied with the salary package offered at the time of recruitment at

different levels?

Yes No

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11) To what extent recruitment & selection process fulfills the requirement of

organization?

Low Moderate High

12) Are joining formalities appropriate after the recruitment & selection process?

Not appropriate Appropriate Very appropriate

Thanking you for your cooperation

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