A Project Report on Hal - Final Part 2

Performance Appraisal System

HINDUSTAN AERONAUTICS LIMITED

(Asia’s Premier Aerospace Complex)

INTRODUCTION

Hindustan Aeronautics Limited which is familiarly known by the

acronym HAL-carries a heavy burden of responsibility towards the Indian Air

Force for the HAL factories spread across the sub-continent collectively produce

a major proportion of the aircraft upon which they depend to meet their

commitments to national defence. HAL has build over 3000 aircrafts of which

about 95% are for IAF. These comprising 20 different types of which were 11

were of indigenous design. From the most advanced combat aircraft, through

trainers & transport aircraft to helicopters. HAL with its product & services fully

engaged, in providing the backbone around which the IAF has built a tough

physical presence, well able to take care of the multifarious tasks demanded of it.

Vigorous expansion and diversification of the production range

over the past 30 years has certainly hastened maturity & the achievement of

increasing self-sufficiency has been obvious, although not unnaturally fraught

with growing pains, HAL can be considered as an embodiment of the Indian

nation’s aspirations to attain self-sufficiency in modern technologies, as

represented by production of aircraft and allied equipment, whilst progressively

building up the capability to undertake de novo design & development of aircraft,

engines & systems.

The present achievements are no more than a stage in a continuing

effort towards full hutment of this aspiration is shown by corporate perspective

plan, which embraces the development & production of a Light Combat Aircraft

(LCH), a twill engined Advanced Light Helicopter (ALH) & other design

including the Intermediate Jet Trainer (IJT).


MISSION

To become a globally competitive aerospace industry while working as an

instrument for achieving self-reliance in design, manufacture and maintainence

of aerospace defence equipment and diversifying to related areas, managing the

business on commercial lines in a climate of growing professional competence.

VALUES OF H.A.L.

H.A.L. is cmmfied to the following values which guide them in all

their activities:

Customer Satisfaction

Commitment to Total Quality

Cost and Time Consciousness

Innovation and Creativity

Trust and Team Spirit

Respect for the Individual

Integrity

BUSINESS

The main functions of H.A.L can be summarized as follows:

To innovate designs and development of fixed and rotary wing aircraft,

avionics and accessories.

Manufacture, maintenance, repair and overhauling of

o Fighter, transport and trainer aircrafts

o Helicopters

o Aeroengines

o Accessories

o Ground support system

Manufacture of structural components for satellite and launch vehicles.

Software development for aerospace applications.

Design Consultancy


HISTORY OF H.A.L.

Hindustan Aeronautics Limited was formed on 1st October 1964 by

the merger of the Hindustan Aircraft Limited and Aeronautics India Limited.

Hindustan Aeronautics was originally established as Hindustan

Aircraft Limited at Bangalore in Karnataka by the Late Shri Walchand

Hirachand in December 1940, in association with the Govt. of Mysore, as a

Private Limited Company. In June 1942 Govt. of India purchased the interest of

this company and took over the management.

The Harloe trainer and Curtiss Hawk Fighter Aircraft were the first

aircrats produced by Hindustan Aircraft Ltd. And they were successfully test

flown III 1942. However because of the 2nd world war the aircraft manufacturing

programme was abandoned in favour of repair & overhaul of aircraft. Over 1000

aircraft such as Fortress, Liberator, Mitchell Bombers, Dakota and Commando

Transport Aircraft and Piston Engineers fitted to these aircraft were overhauled

by Hindustan Aircraft Ltd. During the war years After the war the company

undertook reconditioning and conversion of war Surplus-Dakota aircraft for use

by Airforce/Civil operators and reconditioning of Tiger moth Trainees. Hawker

Tempest fighters and Liberation Bombers for Indian Air Force.

In 1948, with the impetus given by the Prime Minister of India, Shri

Jawaharlal Nehru, the policy for manufacture as well as design and development

of aircraft was revived by the Govt. of India.

A license agreement was entered for the manufacture of the Percival Prentice

Trainer Aircraft and a project was sanctioned for design and development of the

HT-2 aircraft, (an elementary piston engine trainer).The HT-2 aircraft was

successfully developed and was typed certified in January 1953.These

programmes were followed during the 50’s by a series of licensed

projects(Vampire and Gnat)as well as design and development projects (Marut

and Kiran). This laying as base for the rapid development of our aircraft industry.

Jet engine factory was set up in Bangalore in 1960 for manufacturing Orphus

engine used on Marut and Gnat aircraft.

An aircraft manufacturing deptt. (AMD) was established at Kanpur


in U.P. in January 1960 as an airforce unit for manufacturing of Hawker Sidley

748 twin turbo prop transport aircraft AMD was subsequently with the

Aeronautics India Limited.

AERONAUTICS INDIA LIMITED

The Govt. of India entered into a collaboration agreement Soviet

Union for the manufacture of MIG-12 FL aircraft including its engine and

avionics. Aeronautics India Limited was formed to undertake the manufacture of

MIG-21 aircraft and factories were set up at Nasik in Maharashtra for

manufacture of the airframe. Koraput in Orissa for the Aero-Engine and at

Hyderabad in Andhra Pradesh for the avionics for the MIG aircraft,

Hindustan Aircraft Limited and Aeronautics India Limited were

merged in October 1964 for the formation of the present Hindustan Aeronautics

Limited.

HAL LUCKNOW

The Govt. of India decided to set up facilities for manufacture of

aircraft system and accessories of Lucknow. The foundation stone of Lucknow

division was laid down by our Late Prime Minister Mrs. Indira Gandhi on 8th

January, 1972 and inaugurated by her on 17th November, 1973.

The division was set up with the objective of supplying six types of system

equipment of Kiran and Marut aircraft. The division has diversified its product

range subsequently and presently manufactures over 500 products for all type of

aircraft manufactured at HAL. The division has also built up design and

developed its capability and industry developed electrical, hydraulic and other

items which are manufactured for use in aircraft as well as for fighting vehicles.


BASIC OBJECTIVES OF H.A.L.

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 challenging growing needs with especial

emphasis on military requirements.

To conduct its business economically and efficiently that it can contribute its

due share to the national efforts to achieve a self reliant and self generating

economy.

To develop and maintain an organization which will readily respond to and

adopt the changing matrix of socio techno-economic relationship and where

in a climate of growing professional competence, self discipline, natural

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

each employee will be encouraged to grow in accordance with his potential

furtherence of the organizational goals.

Consistent with the basic objectives if the company, the Personnel deptt. Of

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

source of inspiration and guidance in evolving Personnel policies and framing

rules and regulation for growth and development of employees and to ensure

their deep commitment and sense of belongings to the company.

SPECIFIC OBJECTIVE OF H.A.L.

Ensure the quality of personnel at all levels and provide them the right work

environment. Job satisfaction and professional challenges.

Provide a healthy blend of employees who have grown with the organization

and those selected from outside.

Ensure employment of minimum no. of personnel and avoid surplus.


Motivate employees to be increasingly achievement oriented.

Identify personnel with potential for growth.

Provide adequate opportunities for personnel to improve the level of their

professional knowledge.

Personnel with talent and potential for growth to be developed to shoulder

higher responsibilities.

Progressively introduce participative style of management.

Ensure uniformity in principal conditions of service.

Maintain effective communication and harmonious relationship with

employees at all levels.

Provide for welfare and happiness of personnel at all levels and their families.


IMPORTANT EVENTS

Some of the important events which have taken place in the history of

H.A.L. are summarised as follows:

The Hindustan Aircraft Limited was set up by late Shri Walchand & Hirachand in

association with the Govt. of Mysore

First product Harlow Trainer and Curlis Hawk aircraft handed over to Govt. of

India.

HAL repaired over 1000 different varieties of aircraft and 3800 piston engines.

Govt. of India took over the management of HAL again after world war.

First pervieval prentice aircraft assembled.

The control of HAL was shifted to ministry of industry to Ministry of Defence.

The Hindustan Trainer-II (HT-2) had its maiden flight.

Aircraft manufacturing department established at Kanpur.

Aeronautics India Ltd. Was formed o manufacture MIG-21 aircraft. These

factories established at Nasik, Koraput & Hyderabad.

HA L was dissolved and its assets merged with Aeronautics India Ltd. and the

Co. by the name of Hindustan Aeronautics Ltd. was formed.

An agreement with U.S.S.R. for license of MIG-21 and aircraft.

Helicopter division was established to manufacture helicopter.

Lucknow division established to manufacture instrument and accessories.

An agreement with USSR for license of MIG-21 BIS aircraft.

An agreement with British aerospace for manufacturing Jaguar aircraft.

An agreement with USSR for license production of MIG-27 aircraft.

Korwa division of HAL formed.

Design and development of Light Constant aircraft (LCA).

Development of advanced light helicopter(ALH).

Certificate of ISO-9001.

IMGT, a new division at Bangalore.


ALLIANCE OF HAL

ALLIED SIGNED AEROSPACE COMPANY, USA.

AEROSP ALITE , FRANCE.

BOEING ,USA

BRITISH AEROSPACE, UK .

DEFENCE RESEARCH & DEVELOPMENT ORGANISATION INDIA.

DORNIER GMBD, GERMANY.

FERANU, UK.

GENERAL MOTOR ,USA.

ISRO , INDIA .

LUCAS AEROSPACE, UK.

MARTIN BAKER.

MIKAYON OKB, CIS.

NATIONAL AERONAUTICAL LABORATORY, INDIA.

ROLL’s ROYCE, UK .

NORMALIAN GARE'ITE, USA.

SAGEM, FRANCE.

SMITH, UK.

SUBSIANDARD, USA.

TURBOMECA, FRANCE.

TUMAN & KEY, CIS


CUSTOMER'S OF HAL

INDIAN AIRFORCE / NAVY / ARMY / COAST GROUND.

DEFENCE R&D LABORA TIES / DEPT OF SPACE.

STATE GOVT. / CIVIL AlATION / AUDIENCE FACTORIES /

CORPORATE SECTOR.

FLYING ACADEMICS / EDUCATIONAL INSTITUTION.

AIRLINES / AIR TAXI/AIR CARGO.

DEFENCE FORCE OF COUNTRIES FROM SOUTH EAST ASIA /

MIDDLE EAST AND AFRICA.

COLLABORATOR I LICENSOR.

AIRCRAFTS DESIGNED & DEVELOPED BY H.A.L.

HT-2 Piston engined trainer

PUSHPAK Light Aircraft for flying club

KRISHAK Air Observation Post

MARUT(HF-24) Ground Jet fighter

MARUT TRAINER Operational trainer

KIRAN MKI & IA & II Basic Jet trainer

BASANT Agriculture

AJEET Light Flight

HPT-32 Piston engine trainer

HTT-34 Turboprop Variant

(For pictures refer appx.II)

Aircrafts Produced under license at H.A.L.

Percival Prentice, Vampire, Gnat, Mig-2l FL, Mig-2l bis, Mig-27, Jaguar,

Auro (Hs-748), Dornier-228, Chetak, Cheetah.


ORGANIZATION

HAL has eleven-product divisions, they are spread over seven locations.

1. Bangalore Complex :-

Aircraft Division .

Engine Division .

Helicopter Division .

Overhaul Division .

Forge and Foundry Division.

2. Accessories Complex :-

Hyderabad Division .

Lucknow Division .

Korwa Division .

Kanpur Division.

3. MIG Division :-

Nasik Division .

Koraput Division.

4. Design and Development Complex :-

Design activity has been further expanded to include Avionics

in Hyderabad, Accessories at Lucknow and work has

commenced on Helicopter and small Jet Engines at Bangalore.


HINDUSTAN AERONAUTICS LIMITED

ACCESSORIES DIVISION

LUCKNOW

Lucknow division was formed during 1970, for the manufacture of

aircraft instruments and accessories. The foundation stone was laid down by our

late prime minister Mrs.. Indira Gandhi on 8th January, 1972 and inaugurated by

her on 17th November, 1973.

Initially license agreements were agreements were entered into with the

following companies:

a) Dunlop of U.K. for wheels and brakes.

b) Dowty of U.K. for under carriage an hydraulic equipments.

c) Normalalir carret of U.K., for air pressurization and conditioning equipments.

d) Smiths of U.K., SIFM and SFENA for panel instruments and Gyros.

e) Marter Bakor of U.K. for ejection seats.

f) Lucas of U.K. for engines fuel system.

This division was set up with the objective of supplying six types of

systems equipment of KIRAN and MARUT aircraft. The division has diversified

its product range subsequently and presently manufactures over 500 products for

all types of aircraft.


PRODUCTS OF LUCKNOW DIVISION

Electronics :-

Static Inverters.

DC System Control & Production Units.

AC System Control & Production Units.

Fuel Management System.

Land Management.

Gyro-Instruments :-

Direction Gyros

Gyros Horizon

Rate Gyro

Synchros

Hydraulics :-

Accumulators.

Servo Jarks.

Gear Pumps.

Activators.

Motors.

Valves.

G rand Support Equipments :-

Ground Power Unit.

Hydraulic Trolleys.

Customer Built fuel-Hydraulic Test Rights.

Wheel & Brakes :-

Main Wheels.

Nmose Wheels.

Carbon Composite Brakepads.


Sensors & Switches :-

Capacitors Type Fuel Content Qualifying Probes.

Temptation Sensor & Switches.

Presence Sensor & Switches.

Conventional Instrument :-

Altimeter.

Vertical Speed Indicator.

Jetpipe Temperature Indicator.

Electrical :-

DC Generator.

Alternators.

Transformer Rectifier Unit.

Intergrated Drive Generator.

Activators.

Fuel System :-

Booster Pumps.

Heat Pumps.

Fuel Pump.

Fuel Control Units.

Environmental Control S ystem : -

Cold Air Unit

Venturies.

Water Extractors.

Valves.

Precision Manufacturing Capabilities :-

All Range Of NC Machine Upto 5 Axis.

Percision Conventional Machine.

DEPARTMENTS OF HAL (LUCKNOW DIVISION)


The various departments of HAL, Accessories Division, Lucknow are

mentioned below:

Office Control Accounts Personnel Transport Medical Security Design GSE MSD Computer Commercial M/C Shop

Tool room A/T Production Control MTS Customer service Plant Maintenance Inst Factory GLNS Fuel Factory Material Control Technology Cell AGM (Sectt.) Process shop Rubber Plastic Foundry & Forge Tool Planning DRDL Indigenous cell NC cell Training Civil System audit Administration

Total No. of Employee: In H.A.L., Lucknow 3362


HRD GOAL

The corporate goals of HRD as defined in the corporate plan 1990-2005

are as follows:

1) To ensure minimum one potential executive as replacement for each position

at all level of HOD.

2) Train, Retain and develop executive and employee continuously in tune with

changing environment and organizational requirement.

3) To introduce a scheme to develop multi skill traits amongst employee.

4) To introduce formalisation plan for each division for training / retaining in

three vital ones viz. composite computer and CNC all of which have a high

turnover.

5) To improve the quality of life of HAL employee and their families and fulfill

HAL obligation towards the nation.


PERSONNEL & ADMINISTRATIVE DEPARTMENT

H.A.L., ACCESSORIES DIVISION

LUCKNOW

ORGANISATIONAL STRUCTURE AND STAFFING PATTERN OF

P&A DEPARTMENT:

The existing personnel and administrative department

functions directly under Chief Manager (personnel and administrative

department) and assisted by a number of managers, deputy manager, Personnel

officer, Assistant Personnel officer and Supervisor. The hierarchy of the staff is

as follows:-

A) CHIEF MANAGER (P&A)

B) Sr. MANAGER (Admin.)

C) MANAGER

D) Dy. MANAGER

E) PERSQNNEL OFPICSR

F) ASST. PERSONNEL OFFICE

G) CHIEF SUPERVISOR

H) Sr. ASST. SUPERVISOR

I) ASST. SUPERVISOR

Sr. CLERK

CLERK


SECTIONS OF P & A DEPARTMENT OF HAL AND THEIR

FUNCTIONING

The personnel and administrative department has been divided into ten sections-

Recruitment section, Establishment section, HRD section, General

Administration, Industrial Relations, Legal section, Rajbhasha, Public Relation

and Sports, Central Registry and Transportation section.

Section wise details and their functioning is as follows:-

RECRUITMENT SECTION:

Recruitment (Scale-I to Grade-III), Promotions Scale-01 to Grade-III

Seniority lists -workmen & officers.

Wages & Salary administration (including initial pay fixation, pay fixation on

promotion, increments and salary anomalies etc.).

Ex-Gratia in lieu of bonus and productivity linked annual incentive.

Re-categorization, inter-departmental transfer and job-rotation.

Maintenance of Direct Recruitment and Promotion Rosters regarding

reservation of SC/ST/OBC/PH/Ex-Serviceman.

Absorption of management trainees / executive trainees.

Inter-divisional transfer from other divisions.

Circulation of personal circulars (PCs),issuance of administration, instructions

and guidelines.

Matters regarding manpower sanction and planning and organisational

structures.

Re-mustering of ‘Sr.’ prefixed employees

Maintenance of P.B. register incumbent registers.

Public Grievances committee.

ESTABLISHMENT SECTION:


Confirmation of employees / PAR.

Maintenance of personal records of all the employees computerisation of

personal Heads as per LT. plans.

Resignation / Termination on grounds of continued ill health / VRS.

Finalisation / co-ordination of all the dues to the superannuated / resigned

cases on the last working day(except death / terminated cases etc.).

Forwarding of application outside / within organisation.

Addition / Deletion of family members of the employees.

Interest subsidy cases - house, computer, child education, vehicle.

LTC/LTA encashment of employees/ change of hometown.

Grant of special allowance to orthopaedically handicapped persons.

Grant of special allowance to AME license holder.

GSLI cases / gratuity etc.

School fees reimbursement.

Reimbursement of conveyance maintenance (car/scooter/moped).

Leave cases (LWP/ advance vocation leave/ study leave etc.)

Family Planning cases of employees.

Property returns of officers in parade I & above.

Salary certificate/ NOC for passport etc.

Correspondence of old cases.

Inter divisional transfers of employees to other division and mutual transfer

also.

Verification of character & Amecedent (also for employees working in

sensitive areas in a gap of five years), verification of previous employment

and caste (on initial joining).

Grant of incentive on acquiring higher education HAL Cycle Allowance.

HRD SECTION:


MIS and other periodical returns on manpower and various other periodical

and adhoc reports.

Furnishing of information on manpower profile as and when asked for by

corporate office.

Co-ordination with training deptt. For reports on programs conducted training

abroad.

Training of P&A officers and staff.

Suggestion scheme and suggestion awards & rewards.

Identification of training needs based on PAR and preparation of training

modules.

Performance Appraisal report for officers / ACR for workmen.

SC/ST cell and its dialogue with the SC/ST association.

Co-ordination with training department etc. regarding 'O' & 'A' level

examination.

Ensuring a minimum of 20 hrs. of training to each employees! officer within 2

years ........... functional & personnel deptt.

Organising orientation programme for new officer /officers promoted from

workmen.

Career planning.

Computerisation of training imparted to each employees/officers.

GENERAL ADMINISTRATION:

Allotment of ‘A’, ‘B’, ‘C’ & ‘D’ type quarters and retention of company

quarters.

Allotment of quarters to other govt. agencies & its correspondence.

Eviction proceedings in case of retention of company’s residential

accommodation for more than prescribed time by employees in the event of

their transfer, superannuation etc.

Allotment of shops in shopping complex in HAL township.

Execution and extention of bond agreement & realisation of rent from post

office, Punjab National Bank, Kendriya bhandar and shops of shopping


complex of HAL township.

Issuance and renewal of passport. Clearance of Visa through concerned

Embassies. Correspondences with Lucknow Development Authority for

follow up of land cases.

Correspondence with Lucknow Nagar Nigam & other govt. agencies.

Security clearance for foreign customer / visitors. Factory visit for students.

VIP’s visit to the division.

Performance and capital budget of P&A deptt.

Arrangement of domestic & international air tickets.

Arrangement of night duty by office.

Arrangement of hotel accomodation for guests.

Pro viding guest house accomodation to the guest of the division.

Insurance coverage & flight returns with M/S Oriental Insurance Company.

Payments of bill to travelling agents, Indian Airlines & Air India.

Insurance of NOC for non-availability of guest house accomodation.

Rail ticket booking.

Engagement of part time doctor/ zonal doctor/para medical staff.

Medical committee, reimbursement cases of employees, specialist treatment

outside headquarters recognition of hospital for reference and other admin.

Matters and policies regarding medical facilities. Computerisation of

activities of the section.

Preparation deptt. Manual updation,

Administrative matters pertaining to security & vigilance deptt.

Security contract for HAL Township.

Presentation of watch & other gift items.

INDUSTRIAL RELATIONS:

Providing Statutory and Non- Statutory facilities like canteen, creche,


transport etc to maintain industrial peace.

Dealing with Trade Unions & Officers Association

Awarding of Contract for transport, Canteen, Sanitation for Factory

&Township, Scooter & cycle stand, Administration of contracts.

Compliance of various provisions of Factory Act and Labor laws.

Submission of various returns to appropriate labor authorities and also to

Corporate office.

Worker’s Participation in Management, Worker’s education scheme.

Matters regarding issuance of uniform/socks and shoes to employees.

Grievance redressal procedure for workmen and officers.

Prime Minister’s shrarn award & P.H. award etc. of the govt. of India.

LEGAL SECTION:

To contest the court cases on behalf of the Management in various courts

of Law & before other prescribed authorities viz. Supreme court High

court, Labour court, Industrial Tribunal etc.

Disciplinary Enquiry in case of officers & workmen.

To handle the disciplinary enquiries in case of workmen of the division in

scale-1 to scale-10 and in case of officers upto Grade -III (upto Grade-IV

in case of minor punishment)

Constant Liason and follow up with the Divison’s Legal

Advisors/Advocates.

To provide legal assistance arid legal advice to different section of P&A

deptt. And to other deptts.

Legal vetting of any contract by our division.

RAJBHASHA SECTION:

Implementation of official language policy of Govt. of India/Corporate


office.

Promotion of Hindi for use in official work and organisating regular

inspection.

Grant of Hindi incentives & Hindi allowance etc.

Training programs/workshops/seminars in Hindi and Organising of Hindi

functions.

Matters regarding Divisional und Nagar level committees for

implementation of Rajbhasha.

Inspection of Rajbhasha Shield and Hindi Utsav etc.

Incentive for passing Hindi examinations/Hindi typing/Hindi stenography.

Implementation of recommendation of various committees.

PUBLIC RELATION & SPORTS:

Publication of Division’s House Journal and preparation and

forwarding for house magazine “ONWARD”.

Preparation & circulation of press release to media regarding all the

activities, events, visits of the division.

Drawing PRO action plan and implementation.

All the activities of the Division related to sports and Sportsmen.

Planning and organising visits of VIP's duty to the Division, including

stay, Transport and seminar etc.

CENTRAL REGISTRY:

Receiving & delivery of mails within division & despatch of the division's

mail.

Computerisation of detail of receipt/dispatch.

TRANSPORTATION SECTION:

Providing Services of company vehicles to internal and external customers.


Periodical maintenance of vehicles.

Regular audit of upkeep vehicle.

House keeping of Transport Section.

THE CONCEPT

In the present - day society human needs arc largely

satisfied through the economic activities of organized groups and associations.

Because of biological and other limitations, no individual or group can afford to


be self sufficient and yet attain a high a high level of prosperity. It is, therefore, in

their own interest that men should join together and accomplish goals through co-

operation. However, to be effective with minimum of adverse consequences, it is

essential that group efforts should be properly organized, directed and co-

ordination, i.e, here is need for management.

Management is the function of getting things done

through people and directing the efforts of individuals towards a common

objective. It is a process by which responsible people in an organization get

things done through the efforts of other people in grouped activities. To make an

organization more effective it is essential that the employees put in their best

efforts. This requires evaluation of their performance.

To evaluate is to assess the worth or value. In social life,

we generally evaluate or appraise the behavior of others in relation to our own

needs or goals. Appraisals are the judgments of the characteristics, traits and

performance of other. On the basis of these judgments, we assess the worth or

value of others, and identify what is good and bad. In social life we select a

tailor, doctor, architect, or hair dresser through our evaluation of their worth. In

industry, performance Appraisal is a systematic evaluation of personnel by

supervisors or others familiar with their performance because employers are

interested in knowing about employee performance.

An appraisal of the employee is undoubtedly necessary

at the time of his employment. However, an appraisal on a continuing basis is

also very desirable and useful. Actually, evaluation is constantly being done

although at an unconscious level. Employees evaluate superiors, follow

colleagues and subordinates. What is needed to generate proper control is a

formal procedure for evaluating personnel within the organization. Such

appraisals are at times described as ratings. Here one individual, after comparison

with another is ranked or rated as excellent, normal or average. Such personnel or

merit or efficiency ratings are generally used for ascertaining an employee's

eligibility for promotion, The personnel department, where it exit, can help

materially in fixing the qualities and characteristics to be rated, in determining

the person who should make such appraisal as well as prescribing the appropriate


procedure.

SIGNIFICANCE OF PERFORMANCE APPRAISAL

The effectiveness of staffing function is ascertained by evaluating the

performance of employees in terms of job requirements. Performance Appraisal

helps the organization in better decision making & planning of manpower in

order to make elective and judious use of resources. It is useful to make number

of decisions on personnel management. It provides an opportunity for a

systematic review of the employee's performance and an opportunity for formal

counseling and guidance, as part of the process of development of the individual

increasing his efficiency thereby. Performance Appraisal meets the psychological

needs in each of us to know how well or otherwise, we are performing our job .It

provides a fair and systematic criticism for salary increases, promotion, transfer

or termination. It also assesses training needs and bring about individual and

group development. Performance Appraisal develops the Human Relations and

so is a .strong tool in Resource Development.

COMPILATION METHODOLOGY

The approach and methodology that was followed in compilation of

this project report on Performance Appraisal System in HAL are described as


follows:

Selection Of Topic-

Management is the process of getting things done by the

people and through the people. Amongst all the resources available within the

organization, Human Resource is considered as most important and valuable.

Organization aims at optimization of output by optimum use of its resources. the

soul of the organization i.e. Human Resource can give their best if they me

properly groomed and well-directed towards their goal. Their overall

development is necessary. The field where the employee lacks and needs

development can be decided only when their performance is analysed or

appraised. So, Performance Appraisal plays a vital role in the effective

functioning of any organization and that's why I went for this topic.

Selection Of Organization-

Hindustan Aeronautics Limited, through design, development and

production of contemporary aircraft, aeroengines and avionics is committed to

the defence and civilian needs of the country. HAL is one of the few corporate

giants in the world and the only one in Asia, whose capabilities.

Extend across the entire range of activities from product conception to after sales

support of aircraft technology. HAL, Lucknow follows the modern method of

Performance Appraisal i.e. Management of Objective and these all factors led me

towards joining this organization as a trainee and an opportunity to conduct a

research on the PAS in HAL.

Purpose Of Study:

In pursuant of Post Graduate Diploma in Human Resource Development

course in University of Lucknow, there is a mandatory requirement of on the


job training for at least one month. I got an opportunity to do my project in

Hindustan Aeronautics Limited, Accessories Division .Lucknow. I was given

a project to study on existing Performance Appraisal System followed at

HAL and recommend additional measures if any for further improvement.

The purpose of my study on Performance Appraisal System is to understand

as how these are being implemented in HAL. The aim is to analyse the

adequacy and suitability of the measures that are followed.

The purpose of study s also to analyse the Performance Appraisal System is

detail by interacting with the management, supervisors and workers and

seeing on ground that how far the various measures are implemented and

bring out the drawbacks if any and recommend/suggest measures for

betterment of the system. While carrying out the analysis due care to be

taken to ensure that the analysis is unbiased and without any prejudice to any

party.

Research Methodology and Collection Of Data

Study was carried out through subjective and objective

observation, interaction with employees, questionnaires and evaluation of the


results so obtained. In the project report much attention has been paid on

subjective study because the topic deals with the psycho-social behaviour of

workers.

The research work was carried out by visiting the various sections

of the P & A department of HAL:

Recruitment section

HRD section

Establishment section

Industrial Relations & Welfare

Legal section

General Administration

Rajbhasha

Various techniques used in this survey are as under:

1. Observation: Actions speak greater than words. So, close, systematic

and conscious observation was carried out to detect their favourable and

unfavourable attitudes. Close observation of employees was carried out by

sitting with them at their work places such as office and workshop and

keenly observing them doing their work.

2. Stydying and Analyzina Service Records: The service records like

output, quality, discipline, discharge & dismissals, accidents, absenteeism,

Grievances, records of individual and departments were pursued.

3. Journals and Manuals: The yearly journals and manuals was supplied

by various departments and was gone through it deeply. Information

regarding history, achievements and PAS etc. was extracted from these

manuals.


4. Informal Interviews: The opinion of various category of employees

was obtained informally while chatting with them at" their work place.

Informally employees were quite forthcoming in their replies and

expressed their views concerning them. The views expressed were without

any inhibitions.

5. Formal Interviews: Some categories of employees were formally

interviewed bases on the structured questionnaire.

6. Questionnaire: A set of questionnaire was prepared and distributed to the

employees and the analysis was based on the responses received from these

questionnaire. (refer to appx. i)

7. Internet: Lot of information and photographs (see in appendix) were

obtained from the official website of HAL; (WWW.hal-india.com.)

PREPARATION OF THE PROJECT

This project is prepared with proper attention and consideration. Every

information which has been given in this report is bases on observation,

interactions and discussions with workers and managerial staff at their

workplace and answer to questionairre.

During preparation of this project no false data or information regarding the

organization has been supplied, views of all concerned has been included.

PERFORMANCE APPRAISAL THEORY

Appraisals are judgement of the characteristics, traits and performance

of others. On the basis of these judgements, we assess the worth or value of

others, and identity what is good and bad. In social life we select a tailor, doctor,


architect or hairdresser through our evaluation of their worth.

Formal appraisal of an individual's performance began in the Wei

dynasty (A.D.221-265) in China, where an Imperial Rater appraised the

performance of members of the official family. In 1983, the New York City Civil

Service in the USA introduced a formal appraisal programme shortly before

World War I.

MEANING OF PERFORMANCE APPRAISAL:

In industry, performance appraisal is a systematic evaluation of

personnel by supervisors or others familiar with their performance because

employer lore interested in knowing about employee performance. Employees

also wish to know their position in the organization. Appraisals are essential for

making many administrative decisions; selection, training, promotion, transfer,

wages and salary administration, etc. Besides, they aid personnel research.

Performance Appraisal thus is a systematic and objective way of judging the

relative worth or ability of an employee in performing his task, Performance

appraisal helps to identify those who are performing their assigned tasks well

and those who are not and the reasons for such performance.

Appraising the performance of individuals and organizations is an

inherent aspect of managing. It is impossible to make intelligent managerial

decisions about individuals without measuring their performance in some

manner. Hence, formal Performance appraisal is a system set up by the

organization to regularly and systematically evaluate employees performance.

The purpose of Performance appraisal is to determinme what aspects of

performance need to be evaluated. A distinction has to between performance on

the job and potential for upward mobility. Sometimes, only the potential, i.e. the

ability of the individual and his capacity for development is evaluated. However,

in most cases raters are asked to assess both areas.

It is easier for raters to appraise performance than determine potential

for the latter requires a great deal of knowledge and skill. The job environment


may not be conducive for an employee to show his full ability; or he may be

restrained from doing so. Attention has to be paid to these aspects before the

potential for growth and advancement of an employee is evaluated.

OBJECTIVES OF PERFORMANCE APPRAISAL

The main objectives of Performance appraisal system are as follows:

1. To integrate the company's and individual goals through a process of

performance assessment linked to achievement of organization objectives.

2. To increase awareness of tasks and targets and the responsibility of the

employees.

3. To identify the developmental actions to be taken to enhance the

performance of employees.

4. To maintain individual and group development by informing the employee

of his performance standard.

5. To determine increments and provide a reliable index for promotions and

transfers to positions of greater responsibility.

6. To identify those employees for whom additional training IS necessary.

7. To identify those subordinates who deserves higher pay / emoluments.

8. To unable an organization to maintain an inventory of the number and

quality of all managers and to identify and meet their training needs and

aspirations.

9. To suggest ways if improving the employees performance when he is not

found to be up to the mark during the review period.

10. Lastly, to ensure an objective assessment of potential and performance.

UTILITY OF PERFORMANCE APPRAISAL

Performance appraisal is an important tool of personnel management.

It is a judgement of the characteristic, traits and performance of employees

and has a wide range of utility.


(a) Identifying employees for salary increases, promotion, transfer and lay-

off or termination of services.

(b) Determining training needs for further improvement in performance.

(c) Motivating employees by indicating their performance levels.

(d) Establishing a basis for research and reference for personnel decisions in

future.

(e) It unifies the appraisal procedure so that all employees rated in the same

manner.

(f) It provides information in the form of records about ratings which may

be produced as evidence.

(g) A periodic and accurate appraisal constrains a supervisor to be alert and

competent in his work.

(h) It gives supervisors a more effective tool for rating their personnel.

(i) It makes for better employer-employee relationship.

ADVANTAGES OF PERFORMANCE APPRAISAL


The benefits that arises due to Performance appraisal system for

the organization, appraiser and appraise are mentioned below:

For the organization

1. Improved performance throughout the organization due to

More effective communication of the organizational objectives and

values.

Increase sense of cohesiveness and loyalty.

Improve relationship between managers and staff.

2. Improved over-view of the tasks performed by each member of staff.

3. Identification of ideas for improvement.

4. Training and developmental need can be identified more clearly.

5. A culture of continuous improvement and success can be created and

maintained.

6. People with potential can be identified and career development plans

formulated to cater for future staff requirements.

7. The message is conveyed that people are valuable.

For the Appraiser

1. The opportunity to develop an overview of individual jobs and complete

departments.

2. Identification of ideas for improvement.

3. Increased job satisfaction.

4. The opportunity to link team & individual objectives and targets with

departmental and organizational activities.

5. The opportunity to clarify the expectation of contributions of the manager

expects from teams and individual.

6. The opportunity to re-priorities the targets.

7. A mean of forming a more productive relationship with staff based on mutual


trust and understanding.

For the appraisee

1. Increased motivation,

2. Increased job satisfaction.

3. Increased sense of personal value.

4. A clear understanding what is expected and what is to be done.

5. The opportunity to develop work problems and how they can be

overcomed.

6. Improved working relationship with the managers.

REQUIREMENTS OF EFFICIENT APPRAISAL SYSTEM

Validity

Reliability

Sensibility

Practicality

Acceptability

PROBLEM OF CRITERION

Differentiating between individuals is easy provided one knows what

aspects to take into account. Although the identification of relevant measures of


performance or criterion variables has been thoroughly researched. A very broad

definition of criterion is “that which is to be predicted”. This definition refers to

the evaluative standards which measure a person’s performance, attitudes, etc.

Identifying performance measures is easy if the job is clearly defined but difficult

if it is broad. At the lower levels of organization, there are specific jobs, and

certain tangible and objective standards of performance can be identified. Further

up in the hierarchy, jobs become more complex and dear-cut, tangible standards

of performance are difficult to be specified.

Irrespective of the level, by and large, most companies use eleven

performance measures: quantity of work, quality of' work, waste and breakage,

money earned, job knowledge, job tenure, absenteeism, rate of advancement,

self-judgement, judgement by peers and judgement by supervisors. These

measures can be classified into three broad categories:-

Personal Data

This includes personal history, number of grievances, number of

times one has been absent, accidents, breakages, etc., all of which are often use to

differentiate between good and bad performers. Most studies have worked

backwards, i.e. after identifying good and bad performers they studied what

personal variables made them “good” or “bad” performers. However, there is

little evidence to suggest that personal data can predict job performance. A

person can be a good worker and drink or gamble at the same time.

In view of the conflicting evidence, it is extremely risky to use

personal data as an indicator of performance. Infact, several studies suggest that

the relationship between personal data measures and production measures is

often very low. Thus, if these factors are used to define job success they should

be considered relevant criteria in their own right, rather than simple substitutes

for more direct measures of job productivity.

Production Data

Rate and quality of work, and money earned, and direct measures of

performance. These can range from units produced per hour to money earned or

lost. Production data are useful for evaluating the performance of people only in


some jobs and at some levels. Staff jobs vis-a-vis line jobs, higher- level jobs vis-

a-vis lower-level ones, and performance in service organization vis-a-vis

production or engineering organization are difficult to evaluate if production is

the only thing to be considered.

Correlations on the reliability of production data have been found to

range from 0.05 to 0.85 with the magnitude influenced by the time periods

between measures. Hence, a one-shot sample of production data can be very

misleading. To get a correct picture of production and output, several samples

over a number of time periods should be taken.

Judgmental Data

These include self-judgement judgement by peers and supervisors,

and sometimes knowledge of the job. It is one of the most, commonly-used

indicators of performance, and probably the most loaded, with errors and

problems. Most of the problems arise because it is based on subjective

assessment either by the individual or by the another individual for him. It is

almost impossible to objectify subjective judgements, The difficulty of using this

indicator can be gauged merely by giving two persons an answer to an essay test,

and examining the reasons for their evaluations, the evaluations will of course

vary.

PERFORMANCE APPRAISAL METHODS


A number of performance appraisal methods are available. In fact, each

organization has its own. However, a close analysis of their appraisal forms

reveals that they represent variations of one or other of the following methods of

performance appraisal.

TRAITS METHODS:

Confidential Report

This is the traditional way of appraising employee performance. A

confidential report by the immediate supervisor is still is a major determinant of

the subordinate’s promotion or transfer. The supervisor writes about paragraphon

his subordinate's strengths, weaknesses, intelligent t attitude to work t attendance

t conduct and character, work efficiency, etc. The format and pattern of the report

varies with each supervisor.

Rating Scales

These methods assess the degree of certain qualities required for the

job such as industrious, reliability and dependability. The degree is usually

measured on a scale which can vary from 3 point (good, average & poor) to

several points. The anchor points in most cases are labeled excellent-poor, high-

low or never-always, depending on the format.

The general notion that ratings are objective must be regarded with

extreme caution. There is no objective procedure. These ratings need to be

validated against other methods of evaluation. Hunan behaviour is complex, and

traits such as job knowledge, experience, ability to get things done, etc., are

hardly independent of each other .Besides, each may be a composite of simpler

traits. The validity of the rating also depends on the rater's characteristics.

Ranking System

One of the disadvantages of the rating system is that it perm its similar


totals scores fur two or more individuals the raking system obviates’ this

problem. The rater simply ranks employees in order or merit, which determines

the employee's rating. Ranking van be determined either by looking at the total

individual and then ranking him in relation to others; or by first identifying

several relevant traits I ranking employees separately on each of these traits I and

then cumulating these trait-rankings to arrive at the final employee-rankings.

Paired - Comparison

This method is much simpler, requiring the rater to judge which of

two workers is superior, instead of having to arrange members of a large group

of workers in order of excellence. It makes the rater compare one employee

systematically with others individually. Usually only one trait, the overall ability

to perform the job, is considered. The supervisor is provided with a bunch of

slips each containing a pair of names. The rater puts a tick mark against the

individual whom he considers the better of the two, and the final ranking is

determined by the number of times that individuals is judged better than the

others.

Forced - Choice

The forced-choice rating form contains a series of groups of

statements, and the rater checks how effectively the statement describes each

individual begin evaluated. Of course, each statement carries a weight or serve

which is not indicated to the rater. This basic method has a number of variations.

Sometimes all the statements may be either favourable or unfavourable. In

another variation, from four statements -two positive and two negative -the rater

picks the most appropriate and the most unappropriate, for the person being

rated .Sometimes, instead of making statements, a simple listing or traits is given.

Critical Incident

This technique involves three steps. A test of noteworthy (good or

bad) on-the-job behaviour, usually of specific instances, is first prepared. A group


of experts then assigns scale value to them, depending upon the degree of

desirability tor the job. The third step is constructing a check list that includes

incidents which define “good” and “bad" workers. Subsequently, supervisors use

these list for evaluating the worker.

Cost Accounting

This menthol evaluates performance from the monetary returns the

employee yields to his organization. A relationship is established between the

cost involved ill keeping the person, and the benefit the organization derives from

hint.

Forced Distribution

In this method the rater is forced to distribute his subordinates into

performance categories such as outstanding, good, poor, etc. In other words

everyone cannot be given average or good ratings. Hence e some percentage of

the subordinates are rated better than the others.

The rater distributes his subordinates on scale location which can be

top 10 percent to bottom 10 percent, or any variation of the percentages with the

values in between. The most-often used distribution is 10,20,40,20,10, percent,

which equates with a normal distribution. This method is useful for rating a large

number of employee.

MODERN METHODS:

Management by objectives

MBO calls on the subordinate to set his short-term performance

goals in consultation with his superiot. Goals explicitly state the actions which

the employ will follow. Instead of being appraised in a traditional way by his

superior, the subordinate appraises his own performance by evaluating it vis-a-

vis the goals: Before establishing a goal, the individual studies his job, assess his

potentialities and formulates some specific plans to reach the goal. The

supervisor is not the evaluator, but directs the goal-setting processes to ensure

that it matches the objectives of the organization.


MBO differs significantly from the traditional approach, for it shifts

the emphasis from “appraisal” to “analysis”. The .subordinate is no longer

examined by his superior for his weaknesses, but examines himself to ascertain

his strength and potential.

Managerial Appraisal

This approach to Performance Appraisal involves evaluation of

managers in terms of the basic functions and tasks of management. The logic of

such appraisal ought to be against standards which measure the quality of a

manager, as a manager. With a given classification of the function a series of

questions are asked to appraise a manager's performance in each area.

Appraisal interviews

Many organization require their supervisor, managers, and other

raters to have a periodic discussions with employees about their performance, and

particularly to communicate any negative evaluation so that the employee gets a

chance to “explain”. This takes care of the process of natural justice. Norman

Maier has described three appraisal interviews each with a specific and slightly

different objective:

To Tell And Sell Method

To Tell And Listen Method

The Problem-Solving Approach

PROBLEMS IN PERFORMANCE APPRAISAL

None of the methods of performance is absolutely valid or reliable.


Each has its own strength and weaknesses. Some of the common problems are:

Halo effect

Error of Central Tendency

Opportunity bias

Group characteristics bias

Knowledge of predictor bias

Bias In ratings

THE PERFORMANCE APPRAISAL SYSTEM

AT HAL


The existing performance appraisal system as well as the format in

respect of officers have been reviewed. It has been decided to introduce a revised

performance appraisal system effective from' the assessment year 2000-01). As

per the reviser system , officers in Grade 1 to X have been categorized into 5

levels as follows:

LEVEL GRADE

Level-I I & II

Level-II III & IV

Level-III V & VI

Level-IV VII & VIII

Level-V IX & X

Some of the salient features of the revised performance appraisal

system are as under :

1. Two tier system (IA & RA)

2. Quarterly task setting and evaluation on a quarterly basis;

3. Traits based on the responsibilities associated with each levels;

4. Self-appraisal, Management Review Categorization & identification of

Training and Development needs, both by IA & RA.

QUALIFICATION PROFILE


TECHNICAL DISCIPLINE

QUALIFICATIO

N

OFFICERS WORKMEN TOTAL %

PH.D 01 - 01 0.04

P.G. (Engg) 38 - 38 1.36

P.G.(Sc.) 03 02 05 0.18

Degree In Engg. 331 21 352 12.15

Diploma In Engg. 169 548 717 25.65

I.T.I./NAC’s 55 1567 1622 58.033

Inter/SSLC etc. 2 26 28 1.00

Middle & Below - 32 32 1.14

599 2196 2795

NON-TECHNICAL DISCIPLINE

Prof. Qualification 11 15 56 885

Post Graduate 12 51 63 995

Graduate 19 230 249 39.34

Inter/SSLC/H.Sec. 06 164 170 26.86

Middle & Below - 95 95 15.01

78 555 633

Training and Development needs, both by IA & RA

1. There will be five formats, one for each level of officers as indicated below:

2. FILLING UP OF THE FORMATS:


2.1 The format comprises of nine major parts as under:

PART CONTENTS

TO BE FILLED

BY

COVER PAGE Bio-data of the appraisee Appraisee

PART-A Quaterly task setting and assessment Appraisee & IA

PART-B Self appraisal Comments on self appraisal & integrity Appraisee IA&RA

PART-C Assessment of Traits IA& RA

PART-D Qualitative assessment of the Appraisee (Pen Picture) IA& RA

PART-E

General Assessment & Management Review

Categorization IA& RA

PART-F Training & Development needs IA& RA

PART-G Evaluation by Review Board higher authorities IA& RA

PART-H Illustrative list of area for training

PRB

GM/MB/FD/CH

PART-I Check list

3. QUATERLY TASKS & ACHIEVEMENTS:

3(a) The performance Appraisal system envisages setting up quarterly between the Appraisee

and IA. The set tasks would be recorded on the quaterly task setting and assessment sheets. At the

time of setting the tasks, the IA may consult the RA also.

3(b) Quarters for the purpose of PARs would be as follows:

--- Quarter Period I 1st April to 30th June II 1st July to 30th September III 1st October to 31st December IV 1st January to 31st March

--

3( c) Task setting for each quarter would be done, jointly by the Appraisee and


the IA, by the 7th of the month of each quarter. The maximum of 100 would be

distributed among all the tasks, based on their relative weightage/importance

separate task setting and assessment sheets are to be used for each quarter and

the same would be signed by both the appraisee and the IA. The task setting

sheets would be prepared in duplicate and one copy will be with the appraisee

and the other with the IA.

3(d) The tasks set should, as far as possible be quantitative or measurable

either in terms of quantity or time limits.

3(e) The IA would evaluate the performance of the appraisee, by 7th of the first

month of the subsequent quarter ,after joint discussion with the appraisee, against

the set tasks and will award marks for each tasks, keeping in view the maximum

marks decided for each tasks at the beginning of the quarter.

3(f) Completed task setting and assessment sheet of each quarter would be

retained by the IA and the same would be attached by him with the

Annual/Probationary PAR at the end of the assessment Year/Period.

4. SELF APPRAISAL:

4(a) All Officers should assess themselves in Part B(B.1, B.2 & B.3) of the

appraisal format, Self -appraisal is aimed at providing Officers an opportunity

to assess their performance against mutually agreed tasks. Self appraisal should

be brief and to the point.

4(b) Comments on the self-appraisal by the IA & RA are to be made in the space

provided (parts B.4 & B.5). Self-appraisal by Officers should also be taken into

account by the IA 7 RA, while making the assessment in Part-C of the format.


5. LEVEL OF INITIATING/REVIEWING AUTHORITIES:

5(a) Level of the IA & IIA for officers in various grades would be as

follows:

Grade of the

appraisee

Initiating Authority Reviewing Authority

I/II Minimum grade III or

above

Minimum grade V or

above

III/IV Minimum grade V or

above

Minimum grade VI or

above

V/VI Minimum grade VII

or above

Minimum grade VIII

or above

VII/VIII Minimum grade IX or

above

Minimum grade X or

above

IX/X MD/FD CH

Note:- I) While the levels of the IA & RA ,in general, should be as above, if

the Appraisee is reporting to officers at lower levels, the IA & RA can be in

lower grades also.

II) In the case of officers who are directly reporting to senior

Executives in Grade

VII / VIII / IX / MD / FD / CH and where there are no intermediate Officers,

the concerned senior executive will be the IA / RA except in cases which have

been specifically mentioned in the circular.

6. ASSESSMENT OF TRAITS:

6(a) Skills required to be possessed by an officer vary as he moves from one

level to the next. Keeping this aspect in view, separate set of traits against

which Officers are to be assessed have been devised assessment of the traits

have to be made in part C.1 of the format, indicating marks scored for each

traits out of the maximum marks alloted for each traits both by the IA & RA.

6(b) For he first trait (performance), marks awarded by the IA will be the


equivalent % of the average marks for the year awarded by him in part A.

For example, if the average marks awarded by the IA in part -A for a year is

70 out of 100, marks against ‘Performance’ in Part-C.1 for an Officer in Grade

I/II will be 56 (i.e. 80% of 70). In case the marks ‘awarded by the IA, the RA will

indicate justification for just variation in Part-C.1.1 of the format, For the

remaining Traits, the IA & RA have to award marks individually out of the

maximum marks indicated against each trait.

6(c ) To remove ambiguity C.1 of the format.

7. SCALE OF GRADATION:

The scale of gradation would be as under:

Total Marks 100-90 89-80 79-50 Below 50

Performance Exceptional Above Average Below

Rating Average Averge

Overall performance rating to the PRB will be based on the above scale of

Gradation.

8. PEN PICTURE (QUALITATIVE ASSESSMENT):

8(a) Both IA & RA have to give a brief description of the Appraisee at

Part-D of the format, as pen picture.

8( b) The Pen Picture should be written carefully highlighting all aspects of the

personality of the appraisee. By reading the Pen Picture, one should be in a

position to get a clear picture of the appraisee, his effectiveness and his personal

qualities. The IA & Ra should use this part of the appraisal report to narrate about

the traits of the appraisee that are not covered under specific traits under Part C.1.

9. GENERAL ASSESSMENT & MANAGEMENT REVIEW


CATEGORIZATION:

9(a) Both the IA & RA have to indicate the strengths and areas requiring

improvements in respect of the appraisee, with reference to his performance, at

Part-E of the format. This will enable the PRB to get a balanced picture about the

appraisee and would also facilitate positive HRD intervention.

9.(b) Both the IA & RA have to indicate the “Management Review

Categorization” of the appraisee, which forms the potential assessment area of

the performance appraisal system, as follows:

Cat-A: An officer who has degree of potential for development.

Cat-B: An officer has potential for limited advancement.

Cat-C: An officer who has no potential advancement.

9(c) While indicating the Management Review Categorization, the IA & RA

should take into account the educational qualification of the appraisee, variety

and richness of experience, job knowledge, effectiveness, personal qualities and

his performance on various assignments.

9.(d) The assessment should also be made for officers on probation.

10. TRAINING / DEVELOPMENT NEEDS:

Both the IA & IIA should indicate specific areas to which the appraisee

should be job I rotated as well as training to be given to prepare him for further

advancements. An illustrative list of areas for training and development is at Part-

H of the PAR format.

11. PERFORMANCE REVIEW BOARD:

11.(a) Performance R view Board will be constituted at the Divisional /

Complex / Corporate level for determining the Final Marks / Performance rating

of the appraisee, taking into consideration the assessment made by the IA & RA.


The PRB will consult the IA & RA, wherever necessary, if they are not members

of the PRB.

11 (b) Chairman and member of the PRB would be as indicate below:

LEVEL GRAD

E CHAIRMAN OF PRB MEMBERS OF PRB

I I/II Senior most AGM/DGM in

the Division

Others AGM/DGMs/

HODs in the Division &

HRD representative

II III/IV GM/ DIVISIONAL HEAD AGM/DGMs/HODs in

the Division & HRD

representative

III V/VI MD/FD GMs of the Division &

HRD representative

IV VII/VIII CH MD/FDs

V IX/X CH MDs/FDs

11 (c) Constitution of the Divisional PRBs in respect of officers in Grade I/II

& III/IV/

11 (d) In respect of Complex Officers, MDs will be the Chairman of the PRB

for Officers in grades I to IV also.

11 (e) In respect of Officers in Grades I to VI Corporate Office, (Personnel)

and GM (P&A) will be the members of the PRB. The senior most Director will

be the Chairman of the PRB.

11 (f) The marks and performance rating awarded by the PRB would be final.

12. REMARKS BY HIGHER AUTHORITIES:

12 (a) GMs/MDs/FDs/CH would indicate their general remarks in Part-G of the

format.


13. PERFORMANCE APPRAISAL OF OFFICERS ON PROBATION:

13(a) Two performance Appraisals are to be submitted one at the end of sixth

month and the others at the end of the eleventh month of the probationary period

Officers Formats to be used and system to be followed for filling up the format to

be used and system to be followed for filling up the formats would be the same as

in respect of Annual Reports.

13(b) Probationary Performance Appraisal Reports would not be put up to the

performance Review Board Marks / Performance Rating awarded by the RA

would be final in respect of these reports. These reports would however, be put

up to higher authorities for their remarks at Part-G.

13(c) The RA should ensure that the sixth and eleventh monthly reports are

submitted to the HRD cell within 7 days of the completion of the sixth and

eleventh monthly period.

13(d) The sixth / eleventh monthly performance appraisals would be the basis for

confirmation of Officers appointed / promoted. The report should therefore

indicate the suitability or otherwise of the officer for confirmation by the

competent authority, in the eleventh monthly report.

ASSESSMENT PERIOD:-

The performance appraisal form for all officers are to be prepared for every

financial year ending 31st March. The activity chart on the operation of PAS is as

follows:

Activities Concerned

Deptt./Officer

Due Date

Grades

I, II & III IV V & VI VII & above

1 2 3 4 5 6


Appraisal to

be sent to

initining

authority

Deptt. 2nd week of

march

2nd week of

march

2nd week of

march

2nd week of

march

Report to be

put to MDs

performance

Review

committee

-Do 2nd week of

march

2nd week of

May

2nd week of

April

2nd week of

May

Report to be

forwarded

-Do-

14. FEEDBACK SYSTEM:

14(a) All Officers who have scored final marks of below 50 & rated as

Below average would be intimated in writing about the same, through the

concerned Division / Office, as follows:

Officers in Grade To be intimated by

VII and above Corporate office

V / VI Complex office

I to IV Division office

This communication would be signed by the Head of the P&A

department at Corporate Office / Complex Office / Division Office.

14(b) In addition to the above ,oral feedback by the Appraisee, on his

performance, should be an ongoing process. It is necessary to encourage

progress and correct mistakes. The Apparisee should be encouraged and

the areas requiring immediate attention for improving his performance

should be highlighted.


14( c) The IA should inform the Appraisee in writing as and when the

need arises.

14(d) Further to the feedback / communication as at paras 15a to 15c

above, the HRD cell should ensure communication of the areas /traits for

improvement, if any, to the Appraisee, after the report is completed by all

concerned. Such communication would be issued as follows:

I. For Officers upto including Grade IV:

The HRD cell of the respective Division / Officers would identify the cases

where feedback is required and would ensure that necessary

communications are issued to the Officers, through the IA/RA.

II. For Officers in Grade V & VI:

The HRD cell of the Complex offices will identify the cases where

feedback is required to be given and would communicate the same to the

Officers concerned through the concerned Division Office.

III. For Officers in Grade VII & above:

Corporate office will identify the cases where feedback is required to be

given and would communicate the same to the Officers concerned, through

the concerned Division Office, with a copy of the Complex Offices.

15. PROCEDURE FOR EXPUNGING REMARKS ON AREA FOR

IMPROVEMENT:

15(a) If any officer is aggrieved by the communicate for

improvement is certain areas / traits as ret1ected in his performance

appraisal report, he could represent against the same.

15(b) The authorities competent to consider and dispose of the

representation would be as under:

Officers in Grade Competent Authority

I / II / III / IV Concerned GMs

V / VI Concerned MD / FD

VII and above Chairman


15( c) Competent authority would examine .such representations on

the basis of the relevant records and material available and may also

consult the IA / RA. If the Competent authority is convinced that the

observation was unjustified, he may order exploring such observation from

the Officers report.

15(d) Where the GM himself is the IA/RA, the MD/RD will be the

competent authority to dispose the representation and the Chairman will be

the competent authority if the IA/RA is the MD/RD.

15(e) Suitable remarks to the effect that such observation have been

expunged are to be made by the Competent Authority in the Performance

Appraisal Report, at the place where the remarks are expunged.

15(f) The officer concerned would be intimated about expunging the

remarks or otherwise, by the HRD cell of the concerned Division /

Complex / Corporate Office.

16 ROUTING OF THE REPORT:

16(a) Completed performance appraisal reports of Officers in grade I

& II will be maintained by the concerned Division. Complex Officers will

maintain reports in respect of Officers in Grade III to IV. PARs in respect

of Officers in Grades VI and above should be sent to Corporate.

16(b) While forwarding the performance appraisal reports of

Officers in Grade VI & above to Corporate office, the following procedure

should be followed:

I. Reports in respect of Officers in Grade VIII & above should be

sent to the Director(Personnel).

II. Reports in respect of Officers in Grade VI & VII should be sent

to the GM(P&A).

III. The envelope containing the PARs VI & VII should be marked

"Confidential" and to be opened by the addressee only.


17. APPRAISAL ON OFFICERS IN VIGILANCE DEPARTMENT:

17(a) Performance appraisal in the Vigilance Department will be

raised as indicated below:

17(a.1) Executive Director (Vigilance), Corporate office, will be the

IA in respect of Heads Of Vigilance Department in the divisions.

17(a.2) Executive Director(Vigilance) will also be the RA in respect

of He.ids of Vigilance department in the Divisions /Officers up to and

including Grade III. Chairman will be the Ra in respect of Heads of

Vigilance Department in Grade IV & above.

17(a.3) In respect of officers of Vigilance Department who are working

under the Heads of Vigilance in each division/office, ED (Vigilance would

be the RA. In respect of such officers in Grade IV and above, chairman

would endorse his views in Part G.4 of the format.

17(a.4) After the reports are filled in as at Paras 16(a.l) to 16(a.3)

above, ED (Vigilance) would also complete the column of evaluation by

Performance Review Board at Part G.4 of the report.

17(a.5) Completed reports as at paras (16a.l & above) would be

retained in the office of ED (Vigilance) Corporate office.

17(a.6) Administratively, Heads of Vigilance in each Division/Office

would continue to report to the concerned General Manager.

18. APPRAISALS ON OFFICERS OF SYSTEMS OF AUDIT

DEPARTMENT:

18(a) Head of Systems Audit at Corporate office will be the IA in respect

of Heads of Systems Audit cell in the Divisions.

18(b) Heads of Systems Audit at Corporate office will also be the RA in

respect of Heads of Systems Audit Cell in the Divisions who are in Grade I


to III. Director(Finance) will be the RA in respect of Head of Systems

Audit cell in the Divisions in Grade IV & above.

18( c) In respect of officers in Systems Audit who are working under the

head of the Systems Audit cell in the divisions, Head of Systems Audit n

corporate office would be the RA. In respect of such officers in Grade IV

& above, Director (Finance) would endure his views in Part G of the

format.

I 8( d) After the reports are filed in as at Paras I 7 ( a) to I 7 ( c )& above.

Head oi Systems Audit at corporate office would also complete the column

of evaluation of performance Review Board at part G of the report.

18(e) Completed reports as at paras 17(a) to 17(d) would be sent back to

concerned Division /office by the Head of Systems Audit at corporate

office, for retention.

18(f) Administratively Heads of Systems Audit cell in the Divisions/Office

would continue to report to concerned General Manager.

19. APPRAAISAL ON HEADS OF FINANCE,IMM AND

PERSONNEL & ADMINISTRATION IN THE COMPLEX /

DIVISION

19(a) In respect of Heads of Finance, IMM and P&A in Grade VII and

above in the complex officers, MD would be the IA and chairman would

be the RA. In respect of such officers in Grade VI and below, concerned

MD would be the IA & RA.IN respect of Heads of Finance, IMM and

P&A. In all such cases, the concerned functional director at corporate

office would indicate Ids remarks at Part G of the format.

20. MAINTAINENCE OF PERFORMANCE APPRAISAL

RECORDS

20(a) An upto date biodata of the officer should be kept as the first sheet in

the PARs of each officer. A recent passport size photograph should also be

affixed on the inside front of the PARs.


Annexure Number Assessment Period Overall Gradation / Marks

Performance Rating

20(b) This summary will provide at a glance, the Gradation/Marks/Rating

given to the officer right from the beginning of the service.

21. CHECK By HRD CELL

21.1 Part-I of the Performance Appraisal provides for the check list to

be checked and signed by the officer in charge of the HRD cell. The officer

checking the filling of the form should check the Discrepancies /

Inconsistencies, if, any, and guide the Appraisers so that the Appraisal

System serves the purpose for which it is constituted.


TIME SCALE PROMOTION FOR EMPLOYEES IN

WAGE GROUP A,B,C,D,E&F

With a view to provide an assured minimum career to the workmen

in wage Group-A,B,C,D,E&F and to ensure that the career opportunities of

workmen do not differ widel from trade to trade and from division to

division. The following schemes of time promotion for the workmen has

been introduced from 1/1/1985.

(a). The promotions under the time scale promotion to scheme will be in

addition to the vacancy based promotion appointment.

(b). Workmen in wage group -A,B,C,D,E&F will be eligible for time scale

promotion to the next higher group provided they have completed on tile

satisfied dates uninterrupted year of service in their groups on as indicated

below and satisfy the other conditions mentioned below:-

TECHNICAL DISCIPLINE:

PROMOTION DIPLOMA IN

ENGG./B.SC

PRESCRIBED

IN R & P

RULES

NAC/ITI/SSLC

(WHEREVER

PRESCRIBED

IN R&P RULES

RELAXED

QUALIFICATIO

N PRESCRIBED

R&P RULES

A TO B SCALE

05/Interview 9 Years

B TO C –

Written Test C

TO D

7 Years

6 Years

8 Years

7 Years

9 Years

7 Years

D TO B Both

E TO F

5 Years

4 Years

6 Years

5 Years

7 Years

6 Years

F TO Seale 6 Years 7 Years (SSLC

not eligible)

8 Years (With

SSLC)


NON-TECHNICAL DISCIPLINE:

PROMOTION DEGREE PUC/ INTER /

SSLC

RELAXED

QUALIFICATIO

N prescribed R&P

rules

B TO C Scale-05 9 Years

B TO C 7 Years 8 Years 9 Years

C TO D 6 Years 7 Years 8 Years

D TO E 5 Years 6 Years 7 Years

E TO F 4 Years 5 Years 6 Years

F TO SCALE-10 6 Years 7 Years (SSLC

not eligible)

8 Years (With

SSLC)

TIME SCALE PROMOTION FOR OFFICERS GRADE-I, II & III

With a view to provide an assured minimum career to personnel in

junior/middle management cadres, the following schemes of time scale

promotion of officers in grade I, II & III has been introduced from

1/8/1984.

1. Time scale promotions is in additional to the vacancy based

promotion effected either through DPC/IMS or open section.

2. Officers should have put in uninterrupted service in each grade as

Indicated in table given below and should have been confirmed in either

existing posts, to be eligible for consideration for the Time Scale

Promotion.


TECHNICAL STREAM

Grade Degree in Engg.

or equivalent

Diplorma in Engg.

or equivalent

ITI / NAC / SSLC

Promotion from

Grade I to II

4 Years 6 Years 8 Years

Promotion from

Grade II to III

5 Years 7 Years Not eligible

Promotion from

Grade III to IV

6 Years 8 Years Not eligible

NON-TECHNICAL STREAM:

Grade Degree in Arts/Science/

Commerce with relevant

processional qualification

Degree in

Arts/Science/

Commerce

SSLC

Promotion from

Grade I to II


Promotion from

Grade II to III


(PUC/

Inter)

Promotion from

Grade III to IV

6 Years 8 Years Not

eligible


REVISED PAY SCALE OF OFFICERS AND WORKMEN

Grade / officer Scale

(effective from 01-01-97

I Rs. 6550-200-11350/-

II Rs. 8600-250-14600/-

III Rs. 10750-300-16750/-

IV Rs. 13000-350-18250/-

V Rs. 14500-350-18700/-

VI Rs. 16000-400-20800/-

VII Rs. 17500-400-20800/-

VIII Rs. 18500-450-239000/-

IX Rs. 20500-500-26500/-

X Rs. 23750-600-28550/-

Schedule- B- Rs. 25750-650-30950/-

Schedule- A- Rs. 27750-750-31500/-


PROMOTION CHANNEL FOR NEW WORKMAN

Channel From Scale To Scale Period of

uninterrupted

to be completed

in the lower

scale in years

A A1 A2 6

A2 A3 7

A3 A4 8

A4 A5 9

B B3 B4 6

B4 B5 6

B5 B6 7

B6 B7 8

B7 B8 8

C C4 C5 5

C5 C6 6

C6 C7 7

C7 C8 7

C8 C9 8

D D5 D6 5

D6 D7 6

D7 D8 6

D8 D9 7

D9 D10 7


ANALYSIS OF PERFORMANCE APPRAISAL SYSTEM AT HAL

The objective of the Performance Appraisal System in HAL is to

change behaviour attitude towards job done. In other words it is result

oriented. It has adonted a philosophy that stress goal rather than method. It

provides responsibility and accountability recognize that employee have

needs for achievement and self-fulfillment.

The PAS of HAL staff is purely based on the method of Management

Of Objectives which was propounded by Peter Drucker. HAL has

developed potentially a powerful philosophy of managing and an effective

way of operationalising evaluation process. It seeks to minimize external

control and maximize internal motivation. In HAL Performance Appraisal

format, part B of format provides opportunity to the appraisee for self-

appraisal in which lot of research has been done to enable the reviewe

assiss himself. It enhances their sense of dignity & self-respect.

Analysis of the research is based on the feedback received from the

staff through questionnaire. A total of 14 questions were distributed in the

form of questionnaire which basically concerned the employees (workers).

A set of 5 questions in the forms of self-rating chart was circulated,

especially meant for supervisors. (refer to appx.-I).

Management’s View Regarding: The Performance Appraisal Forms

According to the management the Performance Appraisal forms are

basically well-designed, well formulated and caters the need of appraisee

as well as that of appraiser to make the things easy for the appraiser and for

the more accurate and proper assessment of the appraisee, a help -matrix is

provided with the PA forms which gives the detailed description for each

trait for different grades. They believe that the P A forms are slightly

subjective and could be made more objective and brief so as to save time in

filling up the forms.


Management's view Regarding Self-Appraisal

Management regards it as a very healthy source or indirect communication

between juniors and seniors. Through it, the officer communicates to their seniors

who are finally going to assess them that actually they percieve about themselves.

TABULAR ANALYSIS OF RESPONSES

Statements Response (total – 50)

Agree Disagre

e

Partiall

y Agree

Neutral

1. You are aware that PAS

exists in your organisation.

46 2 2 0

2. PAS provides opportunity to

improve.

10 2 31 7

3. Satisfied with the present

PAS.

29 0 17 4

4. You are assisted & guided

fro your superior in your

work.

22 8 15 5

5. You are informed about the

goals & tasks which you

have to achieve.

19 10 13 8

6. You are counseled by your

superior.

17 5 20 8

7. You get feedback about your

performance.

14 17 9 10

8. You get proper training to

improve your weak areas.

8 4 34 4

Source : Questionnaire


SUPERVISOR’S SELF-RATING CHART

Supervisory activities and Results

Rating (%)

Excellent Good Fair Poor

1. Each employee knows what is expected in quantity and quality of work.

0 100 0 00

2. I get my employees in matter that affect them.

75 25 0 0

3. I delegate responsibility encourage employees to ash questions and attend training courses.

75 0 25 0

4. I try to become better acquainted with my employees.

75 0 25 0

5. I give adequate attention to the work environment & strive to improve both the mental & physical conditions.

35 35 30 0

Source : Questionnaire


FINDINGS

On the basis of the analysis we can conclude that majority or the

employees are satisfied with the Performance Appraisal System adopted in their

organisation i.e. HAL. Large section of employees has commented that they do

not receive proper feedback, counseling and training to improve upon their

performance. This is in contrast with the supervisor's responses, who are of the

opinion that full attention is paid in each of these fields. Employees feel that the

Performance Appraisal system should be simpler and f1uble.There is no doubt

that in saying that HAL follows the method Management. By Objectives as

employees are aware of their predetermined goals & tasks which they have to

achieve.


a b c d

46 2 2 0

a b c d

31 10 2 7


a b c d

a b c d

22 8 15 5

a b c d

19 10 13 8


a b c d

17 5 20 8

a b c d

14 17 9 10


a b c d

8 4 34 4

a b c d

14 6 20 10


a b c d

9 15 24 2

a b c d

10 18 16 6


a b c d

22 20 3 5

a b c d

24 14 6 6


SUGGESTIONS

a b c d

5 32 6 7


1. A pre-determined set of standards of performance level should be made in

the beginning.

2. Clear cut indication must be given to the appralsee about what is expected

from him/her.

3. Organisational goal or tasks should be conveyed to every employee in

advance.

4. Both strengths and drawbacks should be communicated to the appraisee.

5. Channel of communication should be completed should be given to the

appraisee.

6. For further improving the performance of appraisee, a review counselling

session should be held at regular basis.

7. Training, if required, should be given the priority.

8. Sense of self-appraisal should be culminated in the employee’s also.

9. Aptitude test and other such tests should be held to determine the potential

of the employee for the further advancement.

10. Psychological tests should be held to measure the level of motivation in the

employees.

11. Important decisions should be conveyed through face-to-face

communication and paper correspondence should be minimized.

12. Provision for towards (monetory and non-monetory) should be made for

excellent performances.

13. Performance Appraisal System and its policies should be regularly

reviewed to bring out any amendments, if required, to make the system

more effective.

CONCLUSION


Performance Appraisal Is a systematic and objective way of judging

the relative worth or ability of an employee in performing his task. Performance

Appraisal helps to Identify those who are performing their assigned tasks well

and those who are not and the reasons for such performance.

Appraisals are essential for making many administrative decisions like

selection, training, promotion, transfer, wage and salary administration, etc.

In H.A.L. a lot of work has been done in the in the area 0 f

Performance Appraisal system. In the early nineties a drastic change was

introduced in the appraisal system. The present Performance Appraisal system is

methodically devised and meticulously planned. The main objective of the

system is the fulfillment of organizational goal through catering the needs of the

employees.

The essential prerequisite in Performance Appraisal is that executives

and organization have to pay a great deal of attention to the psychological and

human aspect of management. A great deal of understanding and time is

necessary to know people, their motives, behaviour .actions and to learn a right

kind of motivational tools to help them to achieve not only organizational goals

but also their individual goals. Gaining insight into human behavior and

personality is an exciting and constant challenge.

Managers and organizers by the nature of their work, have a great

responsibility to study and learn about the motivational theories, systems and

tools in order to be a discriminating while using the right kind of motivational

tool in the right situation for the right individual.

Thus we can sum UJ. by adhering to the fact that Human Resource are

the soul of an organization and the most important and versatile resource

available and the Performance Appraisal system is a strong tool in the

development of Human Resources.

Bibliography


The following books and materials have been of immense

help to guide me and providing me with relevant matter:

Davar R.S., Personnel Management and Industrial Relations,

Vikas Publishing House, 1998 .

Mammoria C.B., Personnel Management

Himalava Publishing House,1996

Monappa Arun & Sayaddin Mirza.S., Personnel Management

Tata McGraw-Hill Publishing Company Ltd,1979

Journals of Hindustan Aeronautics Limited

Various Inputs obtained from records and files kept with

Personnel and Administration Department.

Website of HAL; www.hal-india.com .

http://www.hal-india.com./

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A Project Report on Hal - Final Part 2

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