CHAPTER-I

1

INTRODUCTION

Performance appraisal is a process evaluating the performance of employee in terms of

requirement of the job. It is a continuous process of assessing the worth of man holding

particular job. Once the employee selected, trained and employed, he then appraised for

his/her performance. Performance appraisal is the basic rewarding and developing an

employee.

The employee appraisal form as used in the World War I. When at the instance \ ALTER

DILL SCOTT. The USA army adopted the men to men rating s stem tr evaluating

military personnel.

During the period of 1920-30. Relational wages structure for hourly paid v. workers as

adopted in industrial units under this system.

The policy of giving grade-wise increments based on merit was accepted. These early

employee plans were called merit-rating programs. Now that term merit rating is replaced

by performance appraisal.

Performance appraisal is the process of obtaining, analyzing and recording information

about the relative worth of an employee. The focus of the performance appraisal is

measuring and improving the actual performance of the employee and also the future

potential of the employee. Its aim is to measure what an employee does

.

According to Flippo, A prominent personality in the field of Human resources,

“performance appraisal is the systematic, periodic and an impartial rating of an

employee’s excellence in the matters pertaining to his present job and his potential for a

better job." Performance appraisal is a systematic way of reviewing and assessing the

performance of an employee during a given period of time and planning for his future.

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Employee performance Management includes:

• Planning work and setting expectations,

• Continually monitoring performance,

• Developing the capacity to perform,

• Periodically rating performance in a summary fashion, and

• Rewarding good performance

Performance management is the systematic process by which an organization involves its

employees, as individuals and members of a group, in improving organizational

effectiveness in the accomplishment of organization mission and goals.’

It is a powerful tool to calibrate, refine and reward the performance of the employee. It

helps to analyze his achievements and evaluate his contribution towards the achievements

of the overall organizational goals.

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By focusing the attention on performance, performance appraisal goes to the heart of

personnel management and reflects the management’s interest in the progress of the

employee.

OBJECTIVES OF PERFORMANCE APPRAISAL

• To review the performance of the employees over a given period of time.

• To judge the gap between the actual and the desired performance

• Self assessment by employee

• Understanding strength and weakness.

• Identifying training and development needs.

• Identifying potential.

• Better understanding between appraised and appraiser.

• Recognizing achievements.

• Goal setting GOAL.

• Improved organizational performance.

• To review the performance of the employees over a given period of time.

• To judge the gap between the actual and the desired performance.

• To help the management in exercising organizational control.

• Helps to strengthen the relationship and communication between superior –

subordinates and management – employees.

• To diagnose the strengths and weaknesses of the individuals so as to identify the

training and development needs of the future.

• To provide feedback to the employees regarding their past performance.

• Provide information to assist in the other personal decisions in the organization.

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• Provide clarity of the expectations and responsibilities of the functions to be

performed by the employees.

STEPS OF PERFORMANCE APPRAISAL

ESTABLISHING PERFORMANCE STANDARDS

The first step in the process of performance appraisal is the setting up of the standards

which will be used to as the base to compare the actual performance of the employees.

This step requires setting the criteria to judge the performance of the employees as

successful or unsuccessful and the degrees of their contribution to the organizational

goals and objectives. The standards set should be clear, easily understandable and in

measurable terms. In case the performance of the employee cannot be measured, great

care should be taken to describe the standards.

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COMMUNICATING THE STANDARDS

Once set, it is the responsibility of the management to communicate the standards to all

the employees of the organization.

The employees should be informed and the standards should be clearly explained to the.

This will help them to understand their roles and to know what exactly is expected from

them. The standards should also be communicated to the appraisers or the evaluators and

if required, the standards can also be modified at this stage itself according to the relevant

feedback from the employees or the evaluators.

MEASURING THE ACTUAL PERFORMANCE

The most difficult part of the performance appraisal process is measuring the actual

performance of the employees that is the work done by the employees during the

specified period of time. It is a continuous process which involves monitoring the

performance throughout the year. This stage requires the careful selection of the

appropriate techniques of measurement, taking care that personal bias does not affect the

outcome of the process and providing assistance rather than interfering in an employees

work.

COMPARING THE ACTUAL WITH THE DESIRED PERFORMANCE

The actual performance is compared with the desired or the standard performance. The

comparison tells the deviations in the performance of the employees from the standards

set. The result can show the actual performance being more than the desired performance

or, the actual performance being less than the desired performance depicting a negative

deviation in the organizational performance. It includes recalling, evaluating and analysis

of data related to the employees’ performance.

DISCUSSING RESULTS

The result of the appraisal is communicated and discussed with the employees on one-to-

one basis. The focus of this discussion is on communication and listening. The results,

the problems and the possible solutions are discussed with the aim of problem solving

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and reaching consensus. The feedback should be given with a positive attitude as this can

have an effect on the employees’ future performance. The purpose of the meeting should

be to solve the problems faced and motivate the employees to perform better.

DECISION MAKING

The last step of the process is to take decisions which can be taken either to improve the

performance of the employees, take the required corrective actions, or the related HR

decisions like rewards, promotions, demotions, transfers etc.

PURPOSE OF PERFORMANCE APPRAISAL

It assists in management for management of work force planning. For developing

successive plans and for preparing training schedules.

To decide upon a pay increase where regular pay scales has not been fixed.

To effect promotion based on competence and performance of employees.

Relationships between management and subordinate are improved because of two

way communication reinforced by regular appraisal interviews.

Appraisal enables the manager to identify the training needs.

Helps to strengthen weak areas.

To let the employees know where they’ stand so for as their performance is concerned

and to assist them with constructive criticism and guidance for the purpose of their

development.

IMPORTANCE OF PERFORMANCE APPRAISAL

1. Training and Development Needs:

Performance appraisal helps the management in devising training and programs. It helps

in identifying the areas of skill or knowledge in which several employees are not at par

with the requirements thus pointing out general training deficiency which may be

corrected by additional, training, interviews. Discussions or counseling.

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2. Compensation adjustments:

Performance evaluations help decision-makers determine who should receive pa\

increases. Mans firms grant part or all of their pay increases and bonuses based on merit,

which is determined mostly through performance.

3. Placement Decisions:

Promotions transfers and demotions are usually based on past or anticipated performance

often promotions are reward and past performance.

4. Career planning and development:

Performance feedback guides career decisions about specific career paths one should

investigate.

5. Performance Improvement:

Performance feedback allows the employee. Manager and personnel specialists to

intervene with appropriate actions to improve performance.

6. Self Improvement:

It gives the employees an opportunity to have an insight on their performance and to take

corrective measures to improve their performance.

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PROCESS OF PERFORMANCE APPRAISAL:

1. Objectives of appraisal:

It includes effecting promotions and transfers, assessing training needs. Awarding pay

increases and the like. The emphasis in all these is to correct problem. The objectives are

appropriate as long as approach in appraisal is individual. In the systems approach. The

objectives of appraisal stretch be beyond the traditional ones, In the systems approach.

Appraisal aims at improving the performance. Instead of merely assessing it.

2. Establish Job Expectations:

This includes informing the employee what is expected of him/her on the job. Normally,

a discussion is held with her/his superior to review the major duties contained in the job

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description. Individuals should not be expected to begin the job the understand what is

expected of them.

3. Design the Appraisal Program:

Designing an appraisal program poses several questions.Which need answers?

They are.

Formal versus informal appraisal

Whose performance is to be assessed?

Who are the raters?

What problems are encountered?

How to solve the problems?

What should be evaluated?

When to evaluate?

What method of appraisal is to be used?

4. Appraise performance

By using different methods of appraisal the performance appraisal is done, the some of

the methods are self appraisal. Rating method, field review method. Management by

objectives, etc. The methods adopted by the organizations may differ from one

organization to other organization.

5. Performance interview

Once the appraisal has been made of employees. The raters should discuss and review

the performance with the raters, so that they will receive feedback about where they stand

in the eyes of superior’s performance, interview has three goals:

To change behavior of employees whose performance does not meet organizational

requirements or their own personal goals.

To maintain the behaviour of employees who perform in acceptable manner.

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To recognize superior performance behaviours so that they will be continued.

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6. Use of Appraisal data

The final step in the evaluation process is the use of evaluation data. The data and

information gathered through performance evaluation must be used by the Human

Resource department.

In one way or the other, data and information outputs of a performance appraisal

programmed can critically influence the employer-employee reward opportunities.

Specifically, the data and information will be useful in the following areas of Human

Resource management.

Remuneration administration.

Validation of selection programmes.

Employee training and development programmes.

Promotion, transfer and lay-off decisions.

Grievance and discipline programmes.

Human Resource planning.

CONTENTS OF PERFORMANCE APPRAISAL

Contents to be appraisal may vary with purpose of appraisal type and level of the

employee.

Regularity of attendance.

Honesty and sincerity.

Area of interest.

Organizational knowledge.

Capability of assuming responsibility.

Ability to work with others.

Judgment skills.

Integrity.

Leadership styles and abilities.

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Technical skills.

II. Creative skills.

Ability to reason.

Knowledge of the system and procedure.

Quality of suggestion offered for improvement.

METHODS OF PERFORMANCE APPRAISAL

The manager usually conducts the appraisal using one or more of the formal methods

described in this section.

Graphic Rating Scale Methods

A graphic rating scale lists a number of traits and a range of performance for each: it lists

traits (such as quality and reliability) and a range of performance values (in this case from

unsatisfactory to outstanding) for each trait. The supervisor rates each subordinate by

circling or checking the score that best describes the subordinate’s performance for each

trait, and then totals the scores for all traits.

Alternation Ranking Method

Ranking employees from best to worst on a trait or traits is another popular appraisal

method. Because it is usually easier to distinguish between the worst and best employees

than to rank them, an alternation ranking method is useful. This method indicate the

employee who is highest on the trait being measured and also the one who is the lowest,

alternating between highest and lowest until all employees to be rated have been

addressed.

Paired Comparison Method

With the paired comparison method, every subordinate to be rated is paired with and

compared to every other subordinate on each trait. For example, suppose there are five

employees to be rated. With this method, a chart shows all possible pairs of employees

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for each trait. Then for each trait, the supervisor indicates (with a plus or minus) who is

the better employee of the pair. Next, the number of times an employee is rated better is

added up.

Forced Distribution Method:

With the forced distribution method, the manager places predetermined percentages of

subordinates in performance categories, as when a professor grades on a curve”.

Critical Incident Method

The critical incident method entails keeping a record of uncommonly good or undesirable

examples of an employee’s work-related behavior and reviewing it with the employee at

pre-determined times.

Employers often use the critical incident method to supplement a rating or ranking

method. This helps ensure that the supervisor thinks about the subordinate’s appraisal all

during the year, because the incidents must be accentuated therefore. The rating does not

just reflect the employee’s most recent performance. Keeping a running list of critical

incidents should also provide concrete examples of what specifically your subordinates

can do to eliminate any performance deficiencies.

Behaviorally Anchored Rating Scales

Behaviorally anchored rating scale (BARS) is an appraisal method that combines the

benefits of narrative critical incidents and quantitative ratings by anchoring a quantified

scale with specific narrative examples of good and poor performance

Other Methods are:

Man-to-man comparison method.

Checklist methods.

o Simple checklist.

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o Weighted checklist.

o Forced choice method.

Essay or free form appraisal

Critical incident method.

Group appraisal.

Confidential reports.

Field review method.

Assessment center.

Human resource accounting.

Psychological appraisal.

MANAGERIAL ETHICS IN PERFORMANCE APPRAISAL

Performance appraisal system should be effective as a number of crucial decisions are

made on the basis of score or rating given by the appraiser, which in turn, is heavily

based on the appraisal system. Appraisal system, to be effective, should possess the

following essential characteristics:

1. Reliability and validity:

Appraisal system should provide consistent, reliable and valid information and data,

which can be used to defend the organization-even in legal challenges. If two appraisers

are equally qualified and competent to appraise an employee with the help of same

appraisal technique, their ratings should agree with each other. Then the technique

satisfies the condition of inter-rater reliability. Appraisals must also satisfy the condition

of validity be measuring what they are supposed to measure. For example, if appraisal is

made for potential of an employee for promotion, it should supply the information and

data relating to potentialities of the employee to take up higher responsibilities and carry

on activities at higher level.

2. Job Relatedness:

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The appraisal technique should measure the performance and provide information in

Job related activities/areas.

3. Standardization:

Appraisal forms, procedures, administration of techniques, rating etc. should be

standardized as appraisal decisions affect all employees of the group.

4. Practical Viability:

The techniques should be practically viable to administer, possible to implement and

economical regarding cost aspect.

5. Legal Sanction:

It should have compliance with the legal provisions concerned of the country.

6. Training and Appraisers:

Because appraisal is important and sometimes difficult, it would be useful to provide

training to appraisers namely insights and ideas on rating, documenting appraisals,

and conducting appraisal interviews. Familiarity with rating errors can improve rater

performance and this may inject the needed confidence in appraisers to look into

performance ratings more objectively.

7. Open Communication:

Most employees want to know how well they are performing on the job. A good

appraisal system provides the needed feedback on a continuing basis. The appraisal

interviews should permit both parties to learn about the gaps and prepare themselves

for future. To this end, managers should clearly explain their performance

expectations to their subordinates in advance of the appraisals period. Once this is

known it becomes easy for employees to learn about the yardsticks and, if possible,

try to improve their performance in future.

8. Employee Access to Results:

Employees should know the rules of the game. They should receive adequate

feedback on their performance. If performance appraisals are meant for improving

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employees performance, then withholding appraisals results would not serve any

purpose. Employees simply could not perform better without having access to this

information. Permitting employees to review the results of their appraisal allows them

to detect any errors that may have been made. If they disagree with the evaluation,

they can even challenge the same through formal channels.

It follows then that formal procedures should be developed to enable employees who

disagree with appraisal results which are considered to be inaccurate or unfair. They

must have the means for pursuing their grievances and having them addressed

objectively.

When management uses it as a whip or fails to understand its limitations, it fails. The

key is not which forms or which method is used. Performance appraisal should be

used primarily to develop employees as valuable resources. Only then it would show

promising results.

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CHAPTER-II

18

RESEARCH DESIGN

Title of the study

“A Study on Performance Appraisal Strategy of ULTRATECH CEMENT LTD”.

STATEMENT OF THE PROBLEM

It involves the study of the existing performance appraisal strategy at “ULTRATECH

CEMENT LTD“. It also involves the effectiveness of the performance appraisal strategy

at “ULTRATECH CEMENT LTD”. It implies what improvement has taken place among

the employees after the performance appraisal strategy programs were introduced and

how the various assessment measures have influenced them. This will help in the

betterment and improvement of the performance appraisal strategy programs and will

deliver various ways for different appraisal methods and process.

OBJECTIVE OF THE STUDY

To analyze the effectiveness of performance appraisal strategy program in “The

ULTRATECH CEMENT LTD “.

To know the present organization climate through organization diagnosis.

To understand the concepts in performance appraisal and how it takes place within

the organization.

To find out the shortcomings the organization faces with regard to employees as well

as to know the knowledge, skills and attitudes of employees as they play an important

role in the well being of the organization.

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RESEARCH DESIGN

A researcher design is the overall plan or program of research. It is the general blue print

for the collection, measurement and analysis of data. It includes an outline what an

investigator can do from writing the hypothesis and their operational implication to the

final analysis of data. Various uses of having a research design are as follows –

METHODOLOGY OF THE RESEARCH

A Research Design is the specification of methods and procedures for acquiring the

information needs to structure or solve the problems. The type of research used was

Descriptive type.

DATA

Data constitutes the foundation of any analysis. Data is the collection of any number

of related observations.

Surveys are the most popular device of obtaining the desired data. A survey is a process

of collecting data from existing population units with no particular control over factors

that may affect the population characteristic of interest in study.

Data is the quantitative or numerical information, which is collected for future

analysis and interpretation in order to base decision on them.

SOURCES OF DATA

PRIMARY DATA: -

Primary data source comprises responses to questionnaire and interviews conducted with

manager, supervisor of all department of the company.

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SECONDARY DATA: -

Secondary data source is the one that makes available data that are collected by some

other agency earlier. It comprises different books on the human resource.

Question provided the subject with the multiple-choice response with four rating. In order

to design a good questionnaire all relevant books on the subject were consulted. All the

available articles and research work were taken into account. Exploratory discussion with

my guide, who had intimate knowledge of the subject, helped me never lose sight of the

hypothesis to be tested. Care was taken to relate all questions intimately to the final

objective of the investigation.

DETERMINATION OF SAMPLE

POPULATON

It is defined in terms of elements, unit, extent and time. The demographic profile of the

respondents was a below:

Men or women employed in ULTRATECH CEMENTS LTD– PMI starting from grade

E1 to E7 must have a knowledge about PMS (performance management system) and

their performance is evaluated according to that PMS only. Nature of population was

homogeneous therefore a small sample was effective to represent it.

SIZE: - 50 employees

LIMITATIONS OF THE STUDY

The study has certain limitations:

Sample size is limited to 50 only.

Response of the some of the employees was not so satisfactory.

Some of the respondents failed to understand the questionnaire.

Time was limited to conduct a detailed study.

The negligence of the respondents affects the result.

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CHAPTER SCHEME

The project report is divided into five chapters.

Chapter-I deals with a brief introduction of the working capital management hierarchy.

This chapter also includes a brief explanation about the introduction to the the industry in

general and theoretical perspective.

Chapter –II provides detailed Research Design of the study, statement of the problem,

scope of the study, objective of the study, Research methodology, Sources of data

collection, Plan of analysis, Limitation of the study.

Chapter-III provides a detailed profile of industry, company profile and product profile.

Chapter-IV provides a detailed Analysis and interpretation of data.

Chapter-V provides summary of findings, suggestions and conclusion.

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CHAPTER-III

23

COMPANY PROFILE

Introduction to Ultratech Industries Ltd:

The Aditya Birla Group is India's first multinational company. Global in vision rooted in

India values, the group is driven by a performance ethic pegged on value creation for its

multiple stakeholders. A us$ 12 billion conglomerate with a market capitalization of us$

31.5 billion, it is anchored by an extraordinary force of 130000 employees belonging to

over 30 different Nationalities. Over 24% its revenues flow from its operation across

the world . The group’s products & services offer distinctive customer solution. ITS

74 state of the art manufacturing units & sectorial services span India, Thailand ,

Laos , Indonesia, Philippines , Egypt, Canada, Australia, china, USA, UK, Germany, &

Hungary.

A premium conglomerate, the Aditya Birla Group is a dominant player in all of the

sectors in which it operates, among these are Viscose staple fiber, non- ferrous metals,

cement, Viscose filament yarn, branded apparel, carbon black, chemical, fertilizers,

sponge iron, insulators, financial services, telecom, BPO & IT services.

The no.1 producer of the viscose staple fiber.

The world’s largest single location palm oil producer.

Asia’s largest integrated aluminum producer.

A globally competitive fast growing copper producer.

A world’s third largest producer of insulators

Globally, the fourth largest producer of carbon black

The world’s 8th largest producer cement & largest in a single geography

India’s premier branded garment player.

Among world’s best energy efficient private sector fertilizer plants.

India’s second largest producer of viscose Filament yarn

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The no.2 private sector insurance company & the fourth largest asset management

Company in India.

Among the world’s top 15 BPO Company’s & among India’s top 3

The best employer among the top 20 in Asia.

BOARD OF DIRECTORS:

Mr. Kumar Mangalam Birla, chairman

Mrs. Ulrtatech Birla

Mr. M. L. Apte

Mr. B. V. Bhargava

Mr. R. C. Bhargava

Mrs. Mathur

Mr. Cyrill Shroff

Mr. S. G. Subhramanyan

Mr. Shailendra. K. Jain(whole time director)

Mr. D. D. Rathi (whole time director & CFO)

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ULTRATECH CEMENT DIVISION:

PLANT LOCATION CAPACITY(In million)

Ulrtatech cement Malkhed in Gulbarga

district(Karnataka)

4.20

Vikram Cement Jawad & Bhatinda grinding unit.

(Punjab)

4.20

Ultratech Cement Raipur(chattisgarh) 2.06

Aditya Cement Shambhupura(Rajasthan) 1.50

Cement division south Reddipalayam (Tamil nadu) 1.16

Shree Digvijay

Cement.

Sikka(gujarat) 1.08

TOTAL 14.20

OVERVIEW OF ULRTATECH CEMENT

Ulrtatech Cement Works is a Unit of ultratech Industries Limited.

Established in the year 1984 with One Unit and now it has 3 Units.

Present production capacity- 4.7million tones per annum.

It also has a captive power plant of 58.2 MW.

It is one of the largest cement plants, at a single location, in the country

OWNERSHIP PATTERN OF ULRTATECH CEMENT WORKS

The “ULRTATECH CEMENT WORKS” factory is incorporated under Indian

companies’ act 1956 is having its registered office at Birlagram, Nagda (Madhya

Pradesh) & works at Malkhed in Gulbarga district. The unit manufactures Portland

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cement. The Ultratech cement factory is private ltd.co. Owned by Birla groups. Mr.

Kumar Mangalam Birla is the chairman of the Aditya Birla group.

Competitors of Ulrtatech cement

ACC CEMENT

J.P. CEMENT

AMBUJA CEMENT

COROMANDAL CEMENT (Main competitor).

VISION:

Customization

Quality consistency

Product range

Cost competitiveness

Employee empowerment

MISSION:

To become the best cement unit in the country through human & technical excellence

To foster the culture of involvement, participation, team work & innovation.

To achieve excellence in all effort & activities by each one of us

To produce a premium quality cement & extend best services to its customers

To establish a neat clean & pollution free environment

Community should perceive us a progressive well professional organization.

SOME OF THE AWARDS WON BY THIS UNIT ARE:

National award for quality excellence in the Indian Cement Industry by the national

council for cement & building materials for the

Year 2000-01

IMC Ramakrishna Bajaj National Quality Award in 1999

Jamnalal Bajaj Uchit Vyavahar Puraskar for fair business practices in 1995

Rajeev Gandhi National Quality Award in 1993.

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RECENT AWARDS WON BY THIS UNIT ARE:

Green rating of cement industries 3 leaves out of 5 leaves by (centre for sciences and

environment) in 2006

Gold Award for Green tech environment excellence Award 2006 from Green Tech

Foundation, Goa on 31-08-2006.

Super platinum award in manufacturing sector. From frost & Sullivan on 11-12-2006

Chairman WCM award 2007, Ultratech cement won silver award.

Ultratech cement received “State level Award “for excellence in energy conservation

& management 2008 from Maharashtra Govt.

Under the aegis of directorate of mines safety & mines safety association, Karnataka,

Ulrtatech cement based “Overall Best performance Award” in the 2007 in zone 2.

Golden peacock award of Quality maintenance in 2009

PRODUCT PROFILE:

The company manufactures a range of premium brands of cement:

Types of cement Brand name

Ordinary Portland cement 43 grade Ultratech

Ordinary Portland cement 53 grade Birla super

Premium composite cement Birla Plus

IRST-53 S Cement Ulrtatech

Building Strong Brands & Moving Closer

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PACKING DESIGN:

1) High Density Polyethylene (HDP)

2) Paper

WEIGHT:-

50KG Net per bag.

QUALITY:-

Specification bureau of international standard as per quality system of ISO 9001:2000

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ORGANISATIONAL STRUCTURE

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UNIT HEAD

FUNCTIONAL HEAD

They are committed to manufacturing and supply clicker and cement of consistent quality

to our customers for their total satisfaction by implementation of enhancement system of

Quality, Energy. Occupational Health and Safety and Ethical Considerations in all our

manufacturing Processes through:

Effective operational management by carrying out timely technology up-gradations.

Innovations and optimum of all employees to attain cost competitiveness.

Commitment to comply with requirements of all applicable international management

system standards and other Regulatory/Legislative requirements.

Continual improvement in the effectiveness of all management system standards

related to Quality, Environment, Energy, Occupational Health and Safety and Social

performance by setting-up appropriate objectives.

Continous employee development and uplifment of surrounding community to

improve their satisfaction.

STAFF

Quantization set up

Objectives:

To define roles and responsibilities of an employee in the organization.

Career planning and succession planning of employees.

To ensure a flat organizational structure,

To analyze the manpower requirement.

To define hierarchy, level of authority, vertical and horizontal relationships.

Responsibility:

Unit HR head in consultation with unit head.

Coverage:

All staff and officersEXISTING STRUCTURE

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HEAD OF DEPARTMENT (HOD)

SECTIONAL HEAD

Officers and Engineers

Gradation: In order to define position, application of perquisite structure and to take care

of career aspiration of employees, a grade structure has been adopted.

Levels: To ensure a flat organizational structure and to take care of all the activities,

levels have been identified and demarcated in the existing structure, which is as follows:

Titles Titles

L-1 Unit Head

L-2 Functional Head

L-3A Line Head

L-3B Department Head

L-4 Section Head

L-5 Coordinator

L-6A Support Staff

L-6B Multi Craft Technicians/ peon cum massagers drivers etc

L-7 Workmen

Totally there are 350 permanent workers in Ultratech cement, at the various

departments.

An there are 354 staff including managerial employees

There are 33 apprentices under the training for one year, who are ITT holders.

There are 845 contract labours under 52 contractors.

There are 60 security guards.

Totally there are nearly 1800 employees in the organization.

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PRODUCTION DEPARTMENT:

RAW MATERIALS REQUIRED FOR CEMENT MANUFACTURING.

Limestone

Iron ore

Coal

Chemical gypsum

Alumnus Laterite

Fly ash

CEMENT MANUFACTURING PROCESS

Mining & Crushing.

Stacker/Reclaimer.

Raw mix grinding.

Coal crushing & grinding.

Clinker cooling / storage.

Cement Grinding.

Packing & dispatch.

Cement Manufacturing – Process Chart

33Pre Heater

Limestone Crusher

Stacker & Reclaimer

L/s Hopper

Raw Mill

Preheated

Clinker stockpile

Cement Mill

Cement Silo

Packer

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Crusher

Stack Reclaimer

Auto Packer

Cement Silo

Cement Mill Cooler Section

Clinker Stock Pile

Silo

Kiln

CEMENT MANUFACTURING PROCESS:

Stage –I mining and crushing:

The limestone is extracted from the earth’s crust by the process of blasting. After blasting

limestone boulders are transported to the crushing chit and crushed to the required size.

The crushed limestone is then transported through belt conveyer to the stacker-reclaimer

section.

Stage-II Stacker/Reclaimer:

The stacker-reclaimer is used for pre blending of crushed limestone. Reclaimer picks up

the required quality of crushed limestone form the stock pile and feeds into the raw mill

hopper through belt conveyor.

Stage-III Raw mix grinding:

There are different hoppers for the storing of crushed limestone, iron ore and Alumnus

Laterite. The stored raw materials from the hopper are proportioned and fed to roller

press and subsequently to mill for fine grinding of required fineness. The mix containing

93-98% Limestone 3-4% aluminum laterite, 2-3% Hematite and 1-3%fly ash which is to

be missed in the limestone stock pile itself. The output of the mill grinding is stored in

raw meal silo.

Stage-IV coal crushing and grinding:

The coal is fed into the coal crusher from where the crushed coal is stored in the coal

stocker and reclaimer. This coal (used as fuel for burning) is crushed, pulverized in

vertical roller mill (ball mill and fed into the kiln along with primary on through burner

pipe.

Stage-V Clinkerization:

From the raw mill silo the material is extracted and conveyed to the pre-heater section.

The powdered homogenized raw mill from the silo is fed to the kiln passes through pre-

heaters where raw mill gets partly claimed and converted into clinker at a temperature of

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about 1300—1400 degree centigrade in the sintering zone of the kiln. The material is

claimed and heated in pre-heater and claimed by utilizing kiln waste gases and additional

coal finding. This partially claimed material enters into the kiln where the remaining 8%

of the calcinations and Clinkerization takes place in the kiln and clinker is discharged into

the cooler.

Stage-VI Clinker cooling/ Storage:

The clinker from the kiln is cooled in the cooler section and is transported to the clinker

stockpile by deep pan conveyor (DPC) form the clinker stock pile, the clinker is

transported to cement mill hopper though Deep Bucket Conveyor (DBC).

Stages VII cement grinding:

The clinker and gypsum are stored in the respective hopper. The clinker and gypsum are

proportioned and fed to roller press subsequently to ball mill for fine grinding of required

fineness. The proportion contains 97-98% 2.3% Gypsum. The fine ground material is as

cement.

Stage VIII Packing and dispatch:

The cement from the mill is transported to storage silo and from there the cement is

conveyed to packing plant and is packed in 50kgs bags by rotary packing machine and

then directly loaded into trucks/rail rakes and transported to different locations in the

country

36

HR DEPARTMENT:

HR.,P&A Dept at Ultratech Cement

Core Activities Taken care by HR,P&A Dept in Ulrtatech Cement are:

HR

JR & Legal

Security, Admin & Rural Development (KJST)

Hospital

HR Dept at Ulrtatech Cement

Functions of HR Department:

Recruitment

Establishment

Performance & Talent Management

Training & Development

Corporate Initiatives

Recruitment Process at RC

JRF will be sent to the Depts.

Dept informs the required Job Profile and Education.

Forward to Unit Head for approval by FH-HR

On approval ad will be released

Sources of applicants:

a) Internal Recruitment-Poornata

The Employee has to complete 33 months of Service in one organization before applying

for other position in AVB Group

b) Job Portals: Naukri.com, Jobstreet.com

c) Monsterindia.corn

37

d) Campus Recruitment

e) Walk in Interviews

f) Consultancies

g) Paper Ads

Selection Process at RC

Interviews will be scheduled for the short listed

Candidates

a) 1st Round of Interview by Section/Dept. Heads

b) 2nd Round of Interview by Functional Heads

c) 3rd final round of Interview by Unit Head

Payroll Process in UC

Salary for the current month will be paid to the employees on 1 st Day of the Next

Month

Attendance will be Calculated from 22 of Previous Month to 21st of the Current

Month

38

Leave Rules-Ultratech Cement

All the employees are eligible for leave, after completion of Six Months of Continuous

Service as detailed below.

39

Corporate Initiatives

ABG has initiated several Schemes for the benefit of the employees and it is a

continuous process. Recent Corporate initiatives are:

a) Variable Pay: A Portion of the profit will be, given to the employees Officer and

above are eligible for the same.

b) Med claim Policy: All staff members and their dependants (to maximum of six

members) are covered for a minimum amount of Rs.2,00,000/-.

c) Nescient: All Officer and above are eligible to opt for this Scheme. Under this

Scheme, Employee has to pay 60% of the premium and the rest will be borne by the

Company. Minimum Insurance is for Rs.10 lacks

d) Scholarship Programmed: Scholarship amount is Rs. 30,000/-per annum per

student, subject to a maximum of two children in a family. This is applicable for the

Dy.Managers and above.

Job Analysis Process

Job Analysis

Job Description

Job Equalization

Job Band

Performance Reward

Organizational Health Survey (0 H S)

Survey by reputed agency

Survey Report

Communication of Reports

40

Taskforce Formation

Task Force Recommendation

Implementation of Recommendations

Training & Development

Training Objectives

Competency development of employees at all levels based on Training Need

Identification.

Training Effectiveness to be sustained to 90 Percent.

Emphasis on application oriented programs to improve functional efficiency.

Impart more behavioral programs for attitudinal change/team working.

Training on

Functional Needs (Discipline wise Requirement)

Behavioral Needs (Conduct/Perform. requires.)

Organizational Needs (ISO, WCM,SA-8000, Safety EMS)

Training Hours

Staff - 35 Hours

Workmen - 14 Hours

Training Execution

65-70% programs through Internal Faculty.

15-20% programs through External Faculty.

05-10% programs through External Programs.

Foundation courses through Virtual Campus

Training Evaluation

Feedback by the participants

41

Training Effectiveness Review System (TERS)

Performance Management

Employee is appraised on a Five Point Scale, they are:

a) Non Performer

b) Performer

c) Consistent Contributor

d) High Achiever

e) Exceptional Achiever

FINANCE DEPARTMENT

“Money makes many things happen,” goes the saying and obviously financial

management is the one of the four important areas of the management.

The major objective of any business firm is to make profit for its proprietor, apart from

the primary objective of enhancing long-term shareholder value. To reach this objective,

the firm purchases, organizes and manages various factors of production, and then

produces the output to sell, and all these processes require funds. Finance is, therefore,

said to be the circulatory system of the economic body of the firm.

Financial management is the administrative function, which relates to management of

cash and credit. The central feature of the financial department is the formulation of the

firm’s strategy in determining the most effective use of funds and selecting the most

favorable sources of additional funds that the firm would require in future.

Function of financial management

The function and responsibility of the finance and account wings include the

following.

Analyze the financial results of all operation, report the facts to management and

make recommendations concerning future operations.

Develop the best plans to obtain the external funds needed

42

Determine the financial resource required to meet the corporation operating and

capital expenditure program.

Establish and maintain a system of financial control governing the allocation and use

of the funds.

Planning and forecasting

Modification of Data

Mines Department:

Ulrtatech cement limestone mine was started in the year 1983. And is one of the largest

single location limestone mines in India, having a total lease area of 1813 acres with

reserves lasting up to more than

100 years. The Mineral limestone is the main captive source of raw material for the

manufacture of various grades of cement. The deposit exploitation is planned by opencast

method using latest state of art technology in its working. The 5 year plan designed is

duly approved by Indian bureau of mines. All the limestone is used in the manufacture of

cement with suitable blending arrangement along with stacker re-claimer system being

used to monitor cao & sio2 variations. The major material which helps in a systematic

blast is the ammonium chloride; mixed with diesel oil. The raw dust is used in a small

proportion for controlling the blast. In this particular area, the limestone beds of uniform

quality are found up to 50 to 60 m from OGL.

Technology Adopted:

Two no’s of Hageman L&T Make: 1200 TPH in pit crushers-deriving the optimum

advantage of low lead vis-à-vis considerable cost savings.

Sophisticated hydraulic earth movers (total HP more than 1500) with matching

parameters to achieve optimum productivity.

Well designed blasts with optimum charge ratio, with a proper blend of ANFO,

slurries, & boosters, Noels. Sequential blasting & vibrating, monitoring machines.

43

A combination of good blast whole design, judicious use of explosive blend & charge

ratio, millisecond detonators coupled with sequential blasting machine, vibration

monitoring machines etc. gives an ideal & controlled blast with extremely good

fragmentation.

Extent of area in which mining is finished -20.5OHCT.

Land use pattern towards mining -90 HCT

As per the conceptual plan, the final area excavated is 700 hector @ the end of

mining

Equipment used at mining:

The Excavators

Pay loaders

Dumpers

Crushers

Pump sets

Drills

CPP DEPARTMENT: (CAPTIVE POWER PLANI)

44

In Ultratech Industry there are three unit of captive power plant. First unit has been

established in 1992. Capacity of this captive power plant is 52.8mw. All power produced

by this power plant is used in cement power plant. In this plant as a fuel, coal is used. The

efficiency of the coal is only50%. The high grade coal is not used because it is not

available in our country & it is also very costly. To avoid the corrosion, scaling, &

damage the machine only pure water is used in the captive power plant.

There are several steps to produce the power by this captive power plant.

Water pre treatment scheme

Demineralization of the water

Steam Generator

Turbine Scheme

STEP 1:

For captive power plant water is brought from the kagina power .This water contains

dissolved solid, dissolved gas, suspension material as impurity. So for removing this

impurity, we use the water pre treatment scheme. In this scheme water is mixed with

alumnus & soda ash mix tanker. After that it is stored in water tanker where alumnus &

soda ash react with dissolved solid & give precipitate of aluminum hydroxide which is

settled down on the bottom of the tanker.

Stage 2:

For Demineralization the water ion exchange process is used. The caution exchange unit

contains a strongly acidic exchanger in a regenerated form. The exchange takes place the

caution in water in exchange for hydrogen ions which it gives up. The caution exits in the

form of chloride carbonate salts which get converted to their equivalent acids.

45

Stage 3:

For boiling the water, demineralization water is used. First of all by claimer, coal is fallen

down to crusher then after crushing this coal came to the post screen. From this post

screen only less than 6mm diameter coal passes into the bunker & more than 6mm

diameter coal again go to crusher. From bunker, coal comes to the coal feeder.

Stage 4:

Generated steam comes to the turbine and it rotates the shaft. Since shaft is connected to

steam generator which is not used by turbine goes to the condenser purpose.

STORES DEPARTMENT

The store department play vital role in the operation of any manufacturing industries. The

important purpose served by stores department is to provide proper and systematic

services to various departments.

Functions of stores department:

Receive the material like packing raw materials, and other items.

Provide the adequate and proper storage after the Inspection of item.

Meet the demand at consuming department by Proper issue and account for the

consumption.

To minimize that obsolesce surplus and crap Through proper codification and

preservation and handling.

To ensure, good house keeping so that the material Handling, material preservation

stocking, receipt and issue can be done adequately.

To almost on verification and provide supporting Information for the selective

purchase action.

Method adopted to dispatch material to various

46

A department is FIRST IN FIRST OUT” (FIFO) the nursing materials are kept for six

months in two stores deportment.

System and advance adopted in store

The stores are concerned with receipt issue and storage of materials at the store

deportment receives a copy of the production order from production control department

these are maintained in chronological sequence for guide reference.

The materials accounted in receiving stores and bills are prepared thus the receiving

stores prepared report. A separate place is available to keep the rejected materials to be

returned back to that particular supplier or sub contractor.

The store department is handed by single with the post of store supervisor.

47

INDUSTRY PROFILE

The cement sector has played a vital role in reviving up the Indian economy by

maintaining an impressive rate of growth in the last three to four years. In the calendar

year 2006, the industry witnessed an imposing growth of 11.3 per cent as compared to 9.4

per cent in the preceding year, with capacity utilization well over 90 per cent. It could

have been even higher, had infrastructure growth been up to the expected level. Housing

sector has remained the largest source for cement demand

The industry has sustained a growth of 8 per cent for the last one-and-a-half decades.

This growth is both quantitative and qualitative, as our cement is at par with the best in

the world. India maintained its position as the second largest cement producer in the

world with an installed capacity of 114.2 million tones. Indian cement further enhanced

its status in the global market, when the export of cement and clinker crossed the 10

million-ton mark last year.4

Cement industry is one of the major industries contributing substantially to India’s

industrial and economic development. Just as cement (product) lays the firm foundation of

any good construction, similarly the cement industry lays the firm foundation of modern

economy, which is important for all developmental plans. That is why the per capita

consumption of cement in a country is regarded as an index of its progress.

Cement being a key infrastructure industry, the first cement company was established in

Madras (Chennai) in 1904. At present cement industry is more than 94 years old. During

the first half of the 20 Century India was plagued by an extremely slow growth rate and

not until the dawn of independence in the era of planning the importance of the core

sector industry – cement – to national development was the core sector industry – cement

– to national development was recognized.

On 24 May 1961 Cement Manufacturing Association (CMA) was formed in India. The

period during 1982-85 was a boom period for the industry. By 1992 it had attained fourth

position among the cement producing countries, behind only the USA, China, and Japan.

48

The year 1990-92 was best for the cement producers, but in 1992-93, it had bad fortunes –

the demand for cement, which was 8% in 1991, declined to zero in 1992-93.

The cement has been decontrolled from price and distribution on 01 March 1989 and

delicensed on 25 July 1991. However, the performance of the industry and prices of

cement are monitored regularly. The constraints faced by the industry are reviewed in the

Infrastructure Coordination Committee meetings held in the Cabinet Secretariat under the

Chairmanship of Secretary (Coordination). The Cabinet Committee on Infrastructure also

reviews its performance.

CURRENT SCENARIO

The Indian cement industry is the second largest producer of quality cement, which meets

global standards. The cement industry comprises 130 large cement plants and more than

300 mini cement plants. The industry's capacity at the end of the year reached 188.97

million tons which was 166.73 million tons at the end of the year 2006-07. Cement

production during April to March 2007-08 was 168.31 million tons as compared to

155.66 million tons during the same period for the year 2006-07.Despatches were 167.67

million tons during April to March 2007- 08 whereas 155.26 during the same period.

During April-March 2007-08, cement export was

3.65 million tons as compared to 5.89 during the same period. Cement industry in India is

currently going through a consolidation phase. Some examples of consolidation in the

Indian cement industry are: Gujarat Ambuja taking a stake of 14 per cent in ACC, and

taking over DLF Cements and Modi Cement; ACC taking over IDCOL; India Cement

taking over Raasi Cement and Sri Vishnu Cement; and Grasim's acquisition of the

cement business of L&T, Indian Rayon's cement division, and Sri Digvijay Cements.

Foreign cement companies are also picking up

stakes in large Indian cement companies. Swiss cement major Holcim has picked up 14.8

percent of the promoters' stake in Gujarat Ambuja Cements (GACL). Holcim's

acquisition has led to the emergence of two major groups in the Indian cement industry,

the Holcim-ACC-Gujarat Ambuja Cements combine and the Aditya Birla group through

Grasim Industries and Ultratech Cement. Lafarge, the French cement major has acquired

49

the cement plants of Raymond and Tisco. Italy based Italcementi has acquired a stake in

the K.K. Birla promoted Zuari Industries' cement plant in Andhra Pradesh, and German

cement company Heidelberg Cement has entered into an equal joint-venture agreement

with S P Lohia Group controlled Indo-Rama Cement.

Different types of cement that are produced in India are:

Ordinary Portland cement (OPC):

OPC, popularly known as grey cement, has 95 per cent clinker and 5 percent gypsum and

other materials. It accounts for 70 per cent of the total consumption.

Portland Pozzolana Cement (PPC):

PPC has 80 per cent clinker, 15 per cent pozzolana and 5 per cent gypsum and accounts

for 18 per cent of the total cement consumption. It is manufactured because it uses fly

ash/burnt clay/coal waste as the main ingredient.

White Cement:

White cement is basically OPC - clinker using fuel oil (instead of coal) with iron oxide

content below 0.4 per cent to ensure whiteness. A special cooling technique is used in its

production. It is used to enhance aesthetic value in tiles and flooring. White cement is

much more expensive than grey cement.

Portland Blast Furnace Slag Cement (PBFSC):

PBFSC consists of 45 per cent clinker, 50 per cent blast furnace slag and 5 per cent

gypsum and accounts for 10 per cent of the total cement consumed. It has a heat of

hydration even lower than PPC and is generally used in the construction of dams and

similar massive construction.

Specialized Cement:

Oil Well Cement is made from clinker with special additives to prevent any porosity.

50

Rapid Hardening Portland cement:

Rapid Hardening Portland Cement is similar to OPC, except that it is ground much finer,

so that on casting, the compressible strength increases rapidly.

Water Proof Cement:

Water Proof Cement is similar to OPC, with a small portion of calcium stearate or non-

saponifibale oil to impart waterproofing properties.

PROCEDURE The main raw materials used in the cement manufacturing process are limestone, sand,

shale, clay, and iron ore. The main material, limestone, is usually mined on site while the

other minor materials may be mined either on site or in nearby quarries. Another source

of raw materials is industrial by-products. The use of by- product materials to replace

natural raw materials is a key element in achieving sustainable development.

Future Trends

The cement industry is expected to grow steadily in 2009-2010 and increase capacity

by another 50 million tons in spite of the recession and decrease in demand from the

housing sector.

The industry experts project the sector to grow by 9 to 10% for the current financial

year provided India's GDP grows at 7%.

India ranks second in cement production after China.

The major Indian cement companies are Associated Cement Company Ltd (ACC),

Grasim Industries Ltd, Ambuja Cements Ltd, J.K Cement Ltd and Madras Cement

Ltd.

The major players have all made investments to increase the production capacity in

the past few months, heralding a positive outlook for the industry.

The housing sector accounts for 50% of the demand for cement and this trend is

expected to continue in the near future.

51

CHAPTER-IV

52

DATA ANALYSIS AND INTERPRETATION

Questionnaire of executives

1) Yearly evaluation of the performance of the candidate in the system is?

Factor Percentage

Very effective 8.33%

Effective 66.67%

Fairly effective 25%

Ineffective 0%

Total 100%

8.33%

66.67%

25%

0%0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

Veryeffective

effective Fairlyeffective

ineffective

ANALYSIS AND INTERPRETATION

In the current PMS (performance management system) the performance of the employee

is evaluated yearly and the response of employees point out that 8.33% consider it very

effective, 66.67% consider it effective, 25% consider it fairly effective and no one find it

as ineffective. So after analyzing I find out that maximum employees are in favour of

yearly evaluation of performance.

53

2) Is there any scope present in the current performance management system for

accomplishing of the group objective?

Factor Percentage

High 8.33%

Reasonably well 50%

Partially 33.34%

Not sure 8.33%

Total 100%

High, 8.33%

Reasonably well, 50%

Partially, 33.34%

Not sure, 8.33% High

Reasonably well

Partially

Not sure

ANALYSIS AND INTERPRETATION

Every individual is interested in achieving its own individual objective so I tried to find

out that whether a particular system helps in achieving group objective and with

reference to the PMS employee response were as follow – 8.33% considered it high, 50%

considered it as reasonably well but 33.34% were partial and 8.33% were not sure. So,

maximum employee had positive view about the PMS regarding group objective.

54

3) The manual way involved in filling the form in the performance management

system is?

Factor Percentage

Very effective 0%

Effective 58.33%

Fairly effective 41.67%

Ineffective 0%

Total 100%

Very effective,

0%

Effective, 58.33%

Fairly effective, 41.67%

Ineffective,

0.00%

Very effective

Effective

Fairly effective

Ineffective

ANALYSIS AND INTERPRETATION

In the PMS the employees are required to fill the PMS form manually which according to

employee 58.33% consider it effective, 41.67% consider it fairly effective and no

employee consider it very effective neither ineffective. Thus maximum response was

toward manual method of filling the form.

55

33.34%

66.66%

0.00%

0.00%0.00

%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

   High

   Sat

isfac

tory

   Ave

rage

  Not

satisfactory

4) The extent of involvement in setting the key performance area (KPA) in the

current performance management system for evaluating performance is?

Factor Percentage

High 33.34%

Satisfactory 66.66%

Average 0%

Not satisfactory 0%

Total 100%

ANALYSIS AND INTERPRETATION

In the PMS the performance of the employees are evaluated with reference to the KPAs

(key performance area) which are decided and set after the discussion with the employees

and the employees views regarding the involvement in the PMS in setting KPAs are

66.66% consider it satisfactory, 33.34% consider it high but employee find it as average

and not satisfactory. Thus, the maximum employees are satisfied.

56

8.33%

75%

16.67%

0%0

0.10.20.30.40.50.60.70.8

Very e

ffecti

ve

Effecti

ve

Fairly

effe

ctive

Inef

fecti

ve

5) The marking system adopted in the current performance management system for

evaluating performance is?

Factor Percentage

Very effective 8.33%

Effective 75%

Fairly effective 16.67%

Ineffective 0%

Total 100%

ANALYSIS AND INTERPRETATION

Earlier in the ULTRATECH CEMENTS LTD grading system was in operation but now

marking system have been adopted and 75% employees consider the marking system to

be effective and 16.67% consider it to be fairly effective but 8.33% consider it to be very

effective and no one find it to be ineffective. Thus, maximum employees are satisfied

with the change from the grading system to the marking system.

57

6) The time gap of 6 months provided in re-evaluating the target is?

Factor Percentage

More than sufficient 8.33%

Sufficient 58.33%

Reasonable 33.34%

Not sufficient 0%

Total 100%

8.33%

58.33%

33.34%

0%0

0.10.20.30.40.50.60.7

ANALYSIS AND INTERPRETATION

The time gap provided for revaluating the target is considered to be sufficient by 58.33%

employees and 33.34% consider it to be reasonable but 8.33% find it more than sufficient

and no employee considers it as insufficient. As I observe than more than 50% employees

feels than time gap of 6 month is sufficient thus one can say that PMS is effective with

regard to this parameter.

58

7) The performance management system facilitating the two way communication

between the reporting officer and candidate is?

Factor Percentage

Highly motivating 16.67%

Reasonably well motivating 83.34%

Not very well motivating 0%

De-motivating 0%

Total 100%

reasonably well

motivating, 83.34%

not very well

motivating, 0%

highly motivating,

16.67%

demotivating, 0% highly motivating

reasonably wellmotivating

not very wellmotivating

demotivating

ANALYSIS AND INTERPRETATION

The two way communication involved in evaluating the performance of the candidate

found to be reasonably well motivating by 83.34% employees whereas 16.67% find it

highly motivating and it is neither not very well motivating nor de-motivating. As in the

view of the employees with regard to the flow of communication between the reporting

officer and the employee is rated high, thus one can say that the PMS facilitates two way

communication.

59

8) Does the competency identify of the candidate in the performance management

system correlates with the work requirement?

Factor Percentage

Absolutely 16.67%

Partially 66.67%

Reasonably well 16.67%

Not realistically 0%

Total 100%

66.67%

17%0%

16.67%0.00%

10.00%20.00%30.00%40.00%50.00%60.00%70.00%80.00%

Ab

so

lute

ly

P

art

ially

Re

aso

na

bly

we

ll

N

ot

rea

listica

lly

ANALYSIS AND INTERPRETATION

66.67% were in favour that the identification of the competencies for appraising the

performance of the candidate in the PMS correlates with their work requirement while

16.67% consider it to be absolutely and reasonably well and no candidate find it to be not

realistically. As one observe that more than 50% employees find the PMS to be effective

in the identification of the competencies so they are satisfied with the PMS with respect

to this parameter.

60

9) Does the key performance area (KPA) setting in the performance management

system correlates with your priority for work?

Factor Percentage

Absolutely 25%

Partially 41.67%

Reasonably well 25%

Not realistically 8.33%

Total 100%

25.00%

41.67%

25%

8%

0.00%5.00%

10.00%15.00%20.00%25.00%30.00%35.00%40.00%45.00%

Series1

ANALYSIS AND INTERPRETATION

41.67% employees hold a partial view regarding the correlation of KPAs with their work

priority whereas 25% employees consider it absolutely and realistically well and 8.33%

consider it to be not realistically. PMS is not effective with regard to the parameter of

correlation of KPAs with their priority for work as less number of employee hold a

positive view about it.

61

16.67%

50.00%

33%

0%0.00%

10.00%20.00%30.00%40.00%50.00%60.00%

Absolu

tely

Partia

lly

Reaso

nably

well

N

ot re

alisti

cally

10) Does the identification of the potential of the candidate in the performance

management system correlates with the work requisite?

Factor Percentage

Absolutely 25%

Partially 41.67%

Reasonably well 25%

Not realistically 8.33%

Total 100%

ANALYSIS AND INTERPRETATION

In the PMS the potential of the candidate is identified for the purpose of the evaluation of

the performance and 50% of the employees hold a view that it partially correlates with

their work requirements and 33.34% consider it to be reasonably well but 16.67% find it

to be absolutely and no employees was in favour of treating as not realistically. Thus,

after analyzing it one can say that the potential of the candidate correlates with the work

requirement to some extent.

62

QUESTIONNARIE OF EMPLOYEE’S

Table - 1

Table showing, Are you aware with the performance appraisal management system

in your organization?

Factor No. of Respondents Percentage

Yes 40 80

No 10 20

Total 50 100

Analysis:

From the above table, it could be interpreted that the out of the 50 respondents, 40 of

them were aware with the performance appraisal management system in organization, 10

of them not aware of performance appraisal management system.

63

Chart - 1

Chart showing, Are you aware with the performance appraisal management system

in your organization?

Interpretation:

From the above chart, it could be observed that, 80% of respondents aware of

performance appraisal management system, 20% of them not aware of performance

appraisal management system.

Table - 2

64

AWARENESS ABOUT PERFORMANCE APPRAISAL

YES80%

NO20%

Table showing, in your opinion what is the degree of transparency in the

appraisal system?

Factor No. of Respondents Percentage

Low 20 40

Moderate 20 40

High 10 20

Total 50 100

Analysis:

From the above table, it could be analyzed that the, out of 50 respondents, 20 of them

stated that the degree of transparency in appraisal system was low, 20 of them stated that

it was moderate and 10 of them stated that it was high.

Chart - 2

65

Chart showing, in your opinion what is the degree of transparency in the

appraisal system?

LOW40%

MODERATE40%

HIGH20%

DEGREE OF TRANSPARENCY IN APPRAISAL SYSTEM

Interpretation

From the above chart, it could be interpreted that the, most of the employees are not

satisfied with the degree of transparency in performance appraisal.

Table - 3

66

Table showing, are you satisfied with the present appraisal system?

Factor No. of Respondents Percentage

Yes 35 70

No 05 10

No comment 10 20

Total 50 100

Analysis:

From the above table, it could be analyzed that the out of 50 respondents, 35 of them

stated that it was satisfied with the present appraisal system, 5 of them stated that it

was not good and 10 of them stated that it was no comment about present appraisal

system.

Chart - 3

67

Chart showing, are you satisfied with the present appraisal system?

YES70%

NO10%

NO COM

MENT20%

SATISFACTION WITH PRESENT APPRAISAL SYSTEM

Interpretation:

From the above chart it could be interpreted that the, 70% of respondents were satisfied

by present appraisal system, 10% of them stated that it was not satisfied, 20% of them

responds no comment of present appraisal system.

Table - 4

Table showing, do you get any motivation by the appraisal?

68

Factor No. of Respondents Percentage

Yes 40 80

No 05 10

No comment 05 10

Total 50 100

Analysis:

From the above table, it could be analyzed that the out of 50 respondents, 40 of them

stated that, they were get motivation by the appraisal , 5 of them stated that it was not

motivated and 05 of them stated that it was no comment.

Chart - 4

Chart showing, do you get any motivation by the appraisal?

69

YES80%

NO10%

NO COMMENT10%

GETTING MOTIVATION BY APPRAISAL

Interpretation:

From the above chart, it could be analyzed that the, on basis of above data 80%

employees were highly motivated by present appraisal system.10% respondents stated

that it was not motivated, 10% of respondents stated no comments on present appraisal

system.

Table - 5

70

Table showing, whether appraisal should be done:

Factor No. of Respondents Percentage

Annually 20 40

Half – yearly 30 60

Total 50 100

Analysis:

From the above table, it could be analyzed that the out of 50 respondents, 20 of them

stated appraisal should be done annually. 30 of them stated that appraisal should be done

half – yearly.

Chart - 5

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Chart showing, whether appraisal should be done:

ANNUALLY40%

HALF YEARLY60%

APPRAISAL SHOULD BE DONE

Interpretation

From the above chart, it could be interpreted that the, 60% employees say that

performance appraisal should be done half- yearly. This will help to get better hold on the

employee and bring their efficiency.

Table - 6

Table showing, do you think that different departments should have

different appraisal forms?

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Factor No. of Respondents Percentage

Yes 25 50

No 15 30

No comment 10 20

Total 50 100

Analysis:

From the above table, it could be analyzed that the, out of 50 respondents, 25 of them

think that different departments should have different appraisal form, 15 of them stated

no and 20 of them stated that no comments on the different departments should have

different appraisal form.

Chart - 6

73

Chart showing, do you think that different departments should have

different appraisal forms?

YES50%

NO30%

NO COM

MENT20%

DIFFERENT DEPT. SHOULD HAVE DIFFERENT APPRAISAL FORMS

Interpretation:

From the above chart, it could be interpreted that the, 50% employees say that different

department should have different appraisal form, 30% stated no and 20% stated no

comments.

Table - 7

Table showing, do you think there is clarity in the appraisal system?

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Factor No. of Respondents Percentage

Yes 30 60

No 20 40

Total 50 100

Analysis:

From the above table, it could be analyzed that the, out of 50 respondents, 30 of them

stated that there was clarity in the appraisal system. 20 of them stated no clarity in the

appraisal system.

Chart - 7

Chart showing, do you think there is clarity in the appraisal system?

75

YES60%

NO40%

CLAIRITY IN THE APPRAISAL SYSTEM

Interpretation

From the above chart, it could be interpreted that the, 60% employees say that there is

clarity in the performance appraisal system. Some of the employee’s stated no clarity in

the performance appraisal system.

Table - 8

Table showing, whether direct feedback associated with the appraisal system?

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Factor No. of Respondents Percentage

Yes 05 10

No 05 10

No comment 40 80

Total 50 100

Analysis:

From the above table it could be analyzed that the, out of 50 respondents, 5 of them

stated that positively direct feedback associated with the appraisal system, 5 of them

stated that negatively, and 40 of them stated no comments of direct feedback associated

with the appraisal system.

Chart - 8

Chart showing, whether direct feedback associated with the appraisal system?

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YES10%

NO10%

NO COMMENT80%

FEEDBACK ASSOCIATED WITH APPRAISAL SYSTEM

Interpretation

From the above chart, it could be interpreted that the, most of the employees don’t want

to say anything regarding the direct feedback associated with appraisal system.

Table - 9

Table showing, do you know your job profile very well?

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Factor No. of Respondents Percentage

Yes 45 90

No 05 10

Total 50 100

Analysis:

From the above table, it could be analyzed that the, out of the 50 respondents, 45 of them

stated that they were know about job profile very well. 05 of them stated that they don’t

know about their job profile.

Chart - 9

Chart showing, do you know your job profile very well?

79

Yes90%

No10%

Percentage

Interpretation

From the above chart, it could be interpreted that the, most of employees know very well

about their job profile.

Table - 10

Table showing, do you talk freely about your performance appraisal with

your boss?

80

Factor No. of Respondents Percentage

Yes 30 60

No 10 20

No comment 10 20

Total 50 100

Analysis:

From the above table, it could be analyzed that the, out of 50 respondents, 30 of them

stated that they were talk freely about performance appraisal with their boss, 10 of them

stated that no, and 10 of them said that don’t want to say about freely talk with their boss

about performance appraisal system.

Chart - 10

Chart showing, do you talk freely about your performance appraisal with

your boss?

81

YES60%

NO20%

NO COM

MENT20%

TALK FREELY WITH BOSS ABOUT PERFORMANCE APPRAISAL

Interpretation:

From the above table, it could be interpreted that the, 60% of employee’s talk freely

about performance appraisal with their boss.

Table - 11

Table showing, should counseling method be used after completion of the appraisal

cycle/period?

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Factor No. of Respondents Percentage

Yes 40 80

No 10 20

Total 50 100

Analysis:

From the above table, it could be interpreted that the, out of 50 respondents, 40 of them

stated that they must and should used counseling method after completion of the

appraisal cycle/ period.10 of them stated that not to used counseling method after

completion of the appraisal cycle/period.

Chart - 11

Chart showing, should counseling method be used after completion of the appraisal

cycle/period?

83

YES80%

NO20%

COUNSEILING METHOD USED AFTER COMPLETION PERFORMANCE APPRAISAL

Interpretation

From the above chart, it could be interpreted that the, 80% employee’s says counseling

method should be used after completion of the performance appraisal.

Table - 12

Table showing, do you think that there is a need of training to the

appraiser?

84

Factor No. of Respondents Percentage

Yes 35 70

No 15 30

Total 50 100

Analysis:

From the above table, it could be analyzed that the, out of 50 respondents, 35 of them

stated that there is need of training to the appraiser and 15 of them stated that no need of

training to the appraiser.

Chart - 12

Chart showing, do you think that there is a need of training to the

appraiser?

85

YES70%

NO30%

NEED OF TRAINING TO THE APPRAISER

Interpretation

From the above table it could be interpreted that the , majority of respondents stated that

there is a need of training to the appraiser (70%) and 30% stated that no need of training

to the appraiser.

Table - 13

Table showing, are you satisfied with the monetary linkage of appraising

system, as a bonus?

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Factor No. of Respondents Percentage

Yes 30 60

No 20 40

Total 50 100

Analysis:

From the above table it could be analyzed that the, out of 50 respondents, 30 of them

stated that they satisfied with the monetary linkage of appraising system, as a bonus and

20 of them stated that they not satisfied about monetary linkage of appraising system, as a

bonus.

Chart - 13

Chart showing, are you satisfied with the monetary linkage of appraising

system, as a bonus?

87

YES60%

NO40%

SATISFACTION WITH MONETARY LINKAGE OF THIS SYSTEM

Interpretation

From the above chart, it could be interpreted that the, 60% of employees are satisfied

with monetary linkage of the appraisal system and 40% of them not satisfied with

monetary linkage of the appraisal system.

CHAPTER-V

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SUMMARY OF FINDINGS:

During the study of the project I observed different functions of the HR Department. I got

the knowledge about the different types of HR Policies functioning in the organization. I

also got knowledge about how the organization is following their values in a very sincere

way.

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Majority of the employees are satisfied with the performance appraisal system they

receive for their present job, from the ultratech cement ltd.

The courses of appraisal are relevant to the needs of the employees.

The supervisors take efforts to identify the strengths and weaknesses of the

employees.

Employees are getting the performance appraisal strategy at the right time required.

There is no system to approach the higher authorities when they think they need

performance appraisal system.

Employees find it easy to apply the performance appraisal system they receive in

their work.

Employees are given training when they are assigned additional responsibility.

Present performance appraisal strategy methods are effective.

New recruits are given effective induction programs to groom themselves in the

organization.

The motivation levels are quite high.

The HR team offers help as and when needed inspite of busy schedule.

SUGGESTIONS

After studying the company’s PMS system we have drawn some measures for more

effective and result oriented working of the PMS policy. Following are some suggestions,

which were drawn after the study.

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To be made truly objective

Implementation should be in the true spirit of PMS

There is a strong need for enhanced transparency

There should be proper and complete feedback

A copy of PMS shall be given to the employee after signature of the HOD

Marks should be integrated with other dept. where work is related with outcomes

The targets of reporting officer & subordinates shall be clearly identified/ separated.

It is felt that there is no difference in the targets.

Individual, reporting officer & reviewing officer all sit together for PMS instead of

the present two tier system

Matching of PMS of individual & reporting officer

Moderation may be on scientific manner

To be followed in letter & spirit after coming out from past knowledge and

experience of old PMS.

Prepare Do’s & Don’ts for new PMS

Prepare the table of significant changes to make it more appreciative by all

The ideology needs to translated to practices in the organization

In spite of defined KPA/ KRA marks are given on % of outstanding criteria (which is

20% presently). Does this mean only 20% employees in ULTRATECH CEMENTS

LTD are outstanding & balances are less? This needs to be changed for the proper

implementation of PMS system in true spirit.

PMS is fine but promotions based on this is not

Once final scores are given no one tell/ communicates the person cutting of scores.

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RECOMMENDATIONS

Earlier in ULTRATECH CEMENTS LTD the method employed to appraise the

performance of employees was grading system but now marking system has been

implemented in the PMS (performance management system). That is why we conducted

a survey through the means of filling the questionnaire by the employee to identify to

what extent it is effective and after analyzing the viewpoint and feedback of the

employees we found it to be effective. Though there are certain shortcomings in the

system that can be overcome to some extent by making certain changes in it.

So few of my suggestion are as follows –

Presently in the PMS the performance of the candidate is evaluated annually as a

result employees are not highly satisfied with it so the evaluation can be conducted

half yearly so that employees can get to know the area in which they are lacking so

that get the training at the correct time and also get to know their productivity and

efficiency as a result their performance improve at a faster rate.

The PMS should provide sufficient scope to the employee for accomplishment of

their group objective along with their individual objective by evaluating their

performance in a group because achievement of group objective is also important.

The annual way of filling the form or performance report in the current PMS should

be replaced by online way of filling the form as it has few inherent advantages such

as less time consuming, efficient and effective way of utilizing resources like human

being, stationary, less paper pilling etc.

The competencies identified by the reporter which correlates with the work should be

set after detailed analysis of the work and in consultation with the employee and there

should be frequent evaluation and regular discussion with the employee to identify

any flaws in the competencies and thereby make the suitable changes.

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In the PMS potential of the candidate identified should correlates with the work

requirement and in order to accomplish it the work should be assigned to the

individual by identifying his potential, interest area so that there is not much wide gap

between the potential possessed and requirement of the work and as a result of the

correlation the performance of the candidate improves, moral level will be high and

he will be satisfied with the work which is beneficial for the organization for

accomplishment of its overall objective.

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CONCLUSION AND SUMMARY

Knowing how people perform in their work that is their performance level and

identifying those who have for handling the work more effectively are essential for

any organization. Without such knowledge, management cannot take the decision

regarding the need for training, promotion neither for transfer within the particular branch

or across the branches of the organization. In other words, management need to appraise

the performance in order to take the decision regarding the rewarding the employee in

order to motivate him or taking the corrective actions.

Earlier in the ULTRATECH CEMENTS LTD marking system was used for appraising

the performance of the candidates. The system of grading suffers from few of the

drawbacks such as the grades were completely unknown to the candidate even result was

not reveal to the candidate and promotion was the only reward provided which is also get

due after the three year of service. As a result employees were dissatisfied with it. In

order to overcome these limitations ULTRATECH CEMENTS LTD took the initiative

and call a external consultancy “AT KEARNEY” to devise a new system for appraising

the performance. The consultancy devises the performance management system known

as “PMS” which was bought into practice in 2004. This PMS system overcome the

drawback of the previous method of appraising the performance and even has one

major advantage that is that it facilitates the two-way communication between the

reporting officer and the candidate.

In order to know that whether employees are satisfied with the PMS system or not, I

conduct a survey with the help of the questionnaire and after analyzing the response of

the employees to the question I find out that mostly all the employees are satisfied with

the PMS system.

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BIBLIOGRAPHY

BOOKS –

“Personnel Management” by C.B Mamoria and S.V. Gannker.

“Personnel Management” by Edwin Flippo.

“Appraising and Developing Managerial Performance” by T.V. Rao.

“Human Resource Management” by L.M Prasad.

“Management of Performance Appraisal” by M.L Monga.

“Performance Appraisal” by Martin Fisher.

“Human Resource Management” by V.S.P. Rao.

JOURNALS AND MAGAZINES -

ULTRATECH CEMENTS LTD Weekly News Bulletin

REFERENCES-

www.citehr.com

www.pmintpc.com

http://en.wikipedia.org/wiki/Performance_appraisal

www.businessballs.com

http://www.performance-appraisal.com/intro.htm

http://www.performancemanagementguide.com/

www.openlearningworld.com

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QUESTIONNARIE

Questionnaires of Executives

1. Does the competency identify of the candidate in the performance management

system correlates with the work requirement?

Absolutely

Partially

Reasonably well

Not realistically

2. Does the key performance area (KPA) setting in the performance management

system correlates with your priority for work?

Absolutely

Partially

Reasonably well

Not realistically

3. Does the identification of the potential of the candidate in the performance

management system correlates with the work requisite?

Absolutely

Partially

Reasonably well

Not realistically

4. The extent of involvement in setting the key performance area (KPA) in the

current performance management system for evaluating performance is?

High

Satisfactory

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Average

Not satisfactory

5. The marking system adopted in the current performance management system

for evaluating performance is?

Very effective

Effective

Fairly effective

Ineffective

6. The time gap of 6 months provided in re-evaluating the target is?

More than sufficient

Sufficient

Reasonable

Not sufficient

7. The performance management system facilitating the two way communication

between the reporting officer and candidate is?

Highly motivating

Reasonably well motivating

Not very well motivating

De-motivating

8. Does the competency identify of the candidate in the performance management

system correlates with the work requirement?

Absolutely

Partially

99

Reasonably well

Not realistically

9. Does the key performance area (KPA) setting in the performance management

system correlates with your priority for work?

Absolutely

Partially

Reasonably well

Not realistically

10.Does the identification of the potential of the candidate in the performance

management system correlates with the work requisite?

Absolutely

Partially

Reasonably well

Not realistically

Questionnaires of Employees

1. Are you aware with the performance appraisal management system in your

organization?

100

a).Yes b). No

2. In your opinion what is the degree of transparency in the appraisal system?

a).Low b).Moderate c). High

3. Are you satisfied with the present appraisal system?

a).Yes b). No c).No comment

4. Do you get any motivation by the appraisal?

a).Yes b).No c).No comment

5. Appraisal should be done:

a). Annually b). Half-yearly

6. Do you think that different departments should have different appraisal forms?

a).Yes b). No c).No comment

7. Do you think there is clarity in the appraisal system?

101

a).Yes b). No

8. Is direct feedback associated with the appraisal system?

a).Yes b). No c). No comment

9. Do you know your job profile very well?

a).Yes b).No

10. Should counseling method be used after completion of the appraisal cycle/period?

a).Yes b). No

11. Do you think that there is a need of training to the appraiser?

a).Yes b).No

12. Are you satisfied with the monetary linkage of appraising system, as a bonus?

a).Yes b).No

13. Is there any scope present in the current performance management system for

accomplishing of the group objective?

102

High

Reasonably well

Partially

Not sure

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