Project on Kohinoor Steel

8/9/2019 Project on Kohinoor Steel

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A

PROJECT REPORT

ON

PERFOMANCE MANAGEMENT SYSTEMOF

KOHINOOR STEEL (P) LIMITED

BY:

DHIRAJ KUMAR

A Report submitted in partial fulfillment of

The requirement of PUNE UNIVERSITY

SINHGAD INSTITUTE OF BUSINESS ADMINISTRATION &COMPUTER APPLICATION

Lonavala (Pune)


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ACKNOWLEDGEMENT

I, hereby, deeply express my gratitude to KOHINOOR STEEL (P) Ltd for

giving me an opportunity to work as a trainee at their corporate office under

Summer Internship Program. I am thankful to my Company guide Mr.

Dhiraj Patro HR Manager. I would also like to thank the other members of

the department for providing their knowledge and assistance with the

reference materials, guidance and support.

I also take this opportunity to thank our faculty guides Mr. B.V.Anigree,

Class Coordinator Prof Smita S. Kumar and Director of SIBACA, who

helped me immensely in my project.

At the end of my summer training I feel enriched with the knowledge given

to me at KOHINOOR STEEL (P) Ltd from time to time.

Dhiraj Kumar


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TABLE OF CONTENTS

Certificate:-

Acknowledgement:-

Executive Summary:-

Organizational History:-

Trends in Global and Indian Steel Industry:-

Profile of KOHINOOR STEEL (P) LTD:-

Objectives:-

Scope & Limitations:-

Performance Management System:-

Data Analysis:-

Conclusion:-

Recommendations:-

Bibliography:-


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Trends in Global

and Indian Steel

Industry

TRENDS IN GLOBAL STEEL INDUSTRY


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The volume of steel consumed has been the barometer for measuring

development and economic progress. Whether it is construction or

industrial goods, steel is the basic raw material. Lighter metals and stronger

alloys have been developed; plastics and synthetics have replaced steel in

many areas.

Steel is made from ores still found in abundance around the world.

Technological developments have brought down the time for transformation

from iron ore to steel to within a day. Even after decades of use, it can be

sent back to the furnaces as scrap, melted and remade into new qualities

of steel. It is the most recycled material in the world. In developed

countries, recycling accounts for almost half of the steel produced.

After being in the focus in the developed world for more than a century,

attention has now shifted to the developing regions. In the West, steel is

referred to as a sunset industry. In the developing countries, the sun is still

rising, for most it is only a dawn.


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What's next for world steel? Expect yet more consolidation that will make

the industry more efficient. Despite recent high-profile mergers, the global

steel industry remains fragmented along national lines. And size has its

advantages. Larger companies have more power to negotiate with

suppliers. The recovery has largely been led by increased demand for steel

in China as the country focuses on strong infrastructure led growth and

prepares for Olympics 2008.

STEEL PRODUCTION OF DIFFERENT COUNTRIES

Countries Production Countries Production


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CHINA 394.9 Mton FRANCE 19.5 Mton

JAPAN 112.5 Mton TAIWAN 18.6 Mton

UNITED STATES 94.9 Mton SPAIN 17.8 Mton

RUSSIA 66.1 Mton MEXICO 16.2 Mton

SOUTH KOREA 47.8 Mton CANADA 15.3 Mton

GERMANY 44.5 Mton UK 13.2 Mton

UKRAINE 38.6 Mton BELGIUM 10.4 Mton

INDIA 38.1 Mton SOTH AFRICA 9.5 Mton

BRAZIL 31.6 Mton IRAN 9.4 Mton

ITALY 29.3 Mton POLAND 8.4 Mton

TURKEY 21.0 Mton TOTAL (WORLD) 1131.8 Mton

SCENARIO OF INDIAN STEEL INDUSTRY


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The Indian steel industry is poised for massive expansion. Dramatic

consumption growth over the last few years has stimulated enormous

expansion plan, facilitated by unexploited iron ore raw material base. India

is now being hailed as the new China, where crude steel production soared

from less than 100 million tones in 1995 to over 400 million tones in

2006.India has recently established a long-term goal of raising crude steel

production to 100 million tones per annum by 2020.

The Indian iron and steel industry is nearly a century old with Tata Iron &

Steel Co. (Tata Steel) being the first integrated steel plant to be set up in

1907.The International Iron and Steel Institute (IISI) ranked India as the seventh

largest steel producer in the world with an overall production of about 40 million

tone (MT) in 2006.

In such a short span of time, there has been tremendous growth in this

sector. Today, there are numerous steel manufacturers, stainless steel,mild steel, metal suppliers, building material manufacturers and suppliers

etc. that constitute the steel industry of India.

India's steel production during April 2006-February 2007 grew 10.1 per

cent at 44.3 MT as against 40.237 MT in the corresponding period of

previous fiscal. Crude steel production of Tata Steel Ltd for 2006-07


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crossed five MT; production of hot metal touched 5.55 MT, crude steel 5.05

MT and saleable steel 4.93 MT.

The grand total of 24.9 million MTPA places India among the top ten

producers and suppliers of steel in the world, the per capita steel

production of only 26 Kg is much below the world average of 150 Kg.

Over the last few years the performance of the Indian steel industry has

been adversely affected due to overcapacity, cheap imports, economic

slowdown, declining global steel prices and also anti dumping duty

imposed by USA on Indian exports.

Of late there has been some revival in the automobile sector. The demand

for two-wheelers, passenger cars and HCV segment are witnessing a

recovery. This recovery in the automobile sector is expected to benefit the

steel industry. The government is also talking about pump priming the

economy. Any step up in government expenditure on infrastructure projects

is also likely to benefit the steel sector.

Projected Demand and Supply of Steel in India


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Profile of Kohinoor steel


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About Company

Inception

Kohinoor Steel (p) Ltd, the flagship of the Rs 600-crore Dugar Groups of Nepal

and Bothra Groups of India Group, is now on the threshold of a major expansion in

value added steel, alloy steel and stainless steel products. It is now achieving a

major milestone in the steel cycle with the commissioning of the steel-melting

complex at Kochidih in Kharsawan district of Jharkhand.

The company was among the first few in the private sector to sign a MoU with the

Jharkhand government in 2003 for setting up an integrated steel plant. Since then a

slew of steel projects have been announced both by existing and new entrants into

the steel industry..

Kohinoor Steel (P) Limited was incorporated in 2005 as a joint venture of DugarGroups of Nepal and Bothra Groups of India. It was set up for the production of

sponge iron and power.

The first phase of the project is in an advanced stage of completion. Facilities

already completed are:

The plant is ideally located and is well connected to other towns and cities of the

country through rail and highway routes. Some of the major advantages include:

Iron ore, non-coking coal, manganese ore, limestone, dolomite are all

available in nearby regions.

Transportation facilities to access various markets available through road

and rail.

Both skilled/unskilled labors are available

Water is being drawn from the Koel River which is 7 km away via

company's own pipeline.

The company is now in the midst of a major expansion programmed which

includes addition of a coke oven plant, rolling mill along with development ofcaptive iron ore and coal mines, a private railway siding, a 17 MW captive power


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plant based on waste heat recovery based boiler from DRI and a 18 MW fluidized

based power plant utilizing coal rejects from washer.

The new project will help the company to produce high quality premium steel,

which will be consumed by the Automobile and Heavy Engineering Sector. Thecaptive mines along with captive power and railway siding will enable the

company to drastically reduce its cost of production and thereby compete with the

best of firms in this sector.

Board of Director

Chairman & managing director MR.Vijay Bothra

Ex. Director MR.K.S.Dugar

Director MR.Parekh Dugar

Director MR.Prasant Bothra

GM MR.Pranav Singh

Quality

Having benchmarked our products as international quality standards and

supplementing them with strong ISO systems. A commitment to quality in all

the operations of Kohinoor Steel (P) Limited is carried out through a rigorousmethod of checks and control. ISO 9001 standards have been implemented at

plants and in all our processes.


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Quality Policy

We, at KSPL are committed to meet the needs and expectations of customers

and other interested parties. To accomplish this, we will:

Produce quality products and provide services to all customers to earn

their confidence and their delight.

Achieve quality of the products by following systematic approach

through planning, documented procedures and timely review of quality

objectives.

Continuously improve the quality of all materials, process and products.

Maintain an enabling environment, which encourages teamwork andactive involvement of all employees with total commitment.

Environmental Policy

We, at KSPL while carrying out its operations reaffirm our commitment to

preserve the environment. To accomplish this, we will

Prevent environmental pollution by documenting, implementing,

maintaining and continuously reviewing the environmental management

system.

Ensure healthy environment by complying with all the relevant

environmental legislations, regulations and other requirements.

Ensure continuous improvement in the environmental management and

prevention of pollution by minimizing the emissions and discharges.

Maintain a high level of environmental consciousness amongst

employees through different means including HRD effort.

Review the environmental objectives and targets on a continuous basis.


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Ideally Located

Kohinoor Steel (P) Ltd. is located at Kuchidih, in the Kharsawan District of

Jharkhand. From the point of view of raw materials availability, infrastructure

facilities and accessibility to the market, the plant is ideally located in the close

proximity of iron ore mines and sponge iron consumers of Eastern region.

Product: Sponge Iron

The process of sponge iron making aims to remove oxygen from iron ore.

When that occurs, the departing oxygen causes micro pores in the ore body

making it porous. The final product, when observed under a microscope,

resembles a honeycomb structure looking spongy in texture, hence the name

sponge iron.

High Quality

The quality of sponge iron is primarily ascertained by the percentage of

metallization (removal of oxygen), which is the ratio of metallic iron to the

total iron present in the product. The properties of sponge iron typicallyproduced at KSPL are as shown below:
http://www.tatasponge.com/Operations/RawMaterials.htmhttp://www.tatasponge.com/Operations/RawMaterials.htm


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Constituent Percentage

A Chemical

Fe, Total 90-92

Fe, Metallic 81-84

Metallization 90 (2)

Sulphur 0.03 max

Phosphorus 0.05 max

Carbon 0.10 max

Gangue content 6-8

B Physical

Size Lump +3 mm

Fines -3 mm

Bulk density 1.6-2.0 MT/m3

Inherent density 3.5 MT/m3 (approx)


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Sponge iron produced at KSPL is distinct due to its high metallic iron content

and consistent chemical and physical characteristics. This provides secondary

steel makers flexibility in preparing their furnace charge to produce finer

quality steels than what is possible using steel scrap only. Some of thefeatures of the sponge iron produced at KSPL are:

High iron content and high degree of metallization

Uniform and consistent quality

Lower sulphur and phosphorus content

Negligible tramp element

Minimum dust generation during material handling

Good flow ability in bins, pipes and conveyors for continuous andtrouble free charging

Superior technical support to induction furnace operators

SOCIAL RESPONSIBILITY

The company considers the community around its manufacturing facilities as

one of its most important groups of stakeholders.

It holds regular interactive sessions with a cross section of the local people to

inform them of the activities in its plants, how it can affect them and steps to be

taken by them in the unlikely event of any emissions from the factory. This also

helps the company to get feedback from the local community and take

corrective actions wherever necessary.

The primary approach for the social activities carried out by the Company is to

empower the local people to look after their interests rather than helping

them to ensure sustainability of the effort put in.


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OBJECTIVE


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The cascading of goals and objective through the organization

The setting of performance targets and

The review of achievements against this agreed objectives for employees at

all level in the organization.

The knowledge which does not deal with its practical application is said to be

unscientific since participant are taught only the theoretical aspect is classroom

they are not exposed to practical knowledge. Therefore participants are required to

visit in order to garner practical knowledge.

Thus, the very first objective of summer training is to bridge the gap between the

theoretical knowledge and practical application.


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SCOPE AND LIMITATIONS

OF STUDY


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SCOPE AND LIMITATIONS OF STUDY

SCOPE

The scope of HRD practices is very wide. Performance management system is amajor part of the HRD practices of an organization .HRD practices include

recruitment and selection ,promotion ,transfer ,training and development of

employees, personnel policy of an organization ,particulars of manpower

,distribution of salary ,increment etc.

A good performance management system leads to overall development of

employees. It provides motivation to the employees and a sort of encouragement to

them. It brings a sense of belongingness among the employees that they are the

part of the organization. As the times have been changed and so the importance of

employees management relations has also taken drastic change.

LIMITATIONS

Some of the limitations

I would have liked to spend more time on studying the HRD practices of

company and understanding of the performance management system.

The employees in their comments may not have been absolutely frank in

their opinion as I was a student and not a management consultant.

Although I tried my best to get information from employees, their homemagazines, websites, internet sites, library etc. I felt that some very confidential

data may have been restricted.


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WAGE AND SALARYADMINISTRATION


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WAGE AND SALARY ADMINISTRATION

Wage and salary administration refers to the establishment and implementation

of sound policies practices of employee compensation. It includes such areas as jobevaluation, surveys of wage and salaries, analysis or relevant organizational

problems, development and maintenances of wage structure, establishing rules for

administering wages, wage payments incentives, profit sharing, wage changes and

adjustments, supplementary, control of compensation costs and other related items.

The basic purpose of wage and salary administration is to establish and maintain an

equitable wages and salary structure.

Its secondary objective is the establishment and maintenance of an equitable laborcost structure, i.e. an optimal balancing of conflicting personnel interest so that the

satisfaction of employees is maximized and conflicts minimized.

Wage and Salary programmers have four major purposes:

To recruit persons for a firm

To control payroll costs

To satisfy people, to reduce the incidence of quitting grievances, and

fractions over pay and To motivate people to perform better.

A wage is the remuneration paid for the service of labor in production, to an

employee or a worker.

Wage usually refers to the hourly rate or daily rate paid to such groups as

production and maintenance employees (blur-collar workers).

Salary normally refers to the weekly or monthly rates paid to clerical,

administrative and professional employees (white-collar workers).


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WAGE AND SALARY ADMINISTRATION AT

KOHINOOR STEEL (P) LIMITED

FOUR YEARS WAGE SETTLEMENT governs the wage system for theunionized category of workers at Kohinoor Steel (P) Ltd.

This includes amount of wages for different category of workers, allowances and

other types of facilities for workers, mode of payment etc.

Workers of Kohinoor Steel (P) Ltd are daily rated and monthly paid. If they

have 100% attendance, they are paid for 26 days in a month i.e. Daily rate x 26

days.

Officers of Kohinoor Steel (P) Ltd are monthly rated and monthly paid.They

are paid for 30 days in a month.

ATTENDANCE

There is an Electronic Punching Card System for keeping the

attendance record of the employees of Kohinoor Steel. All the

employees are required to punch there cards at time of coming in at the

start as well as while going out at the end of their respective shifts. Theemployee who fails to punch his card is not given attendance and he is

treated as absent.

WORKING HOURS

The employees of Kohinoor Steel (P) Ltd work in shift. There are three shifts. In

each shift the employees have to work for eight hours.

Arrival Time Departure Time

General Shift 9.00am 6.00pm

Shift A 6.00am 2.00pm

Shift B 2.00pm 10.00pm

Shift C 10.00pm 6.00am


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The worker have to come half an hour earlier before the shift starts so that they

can be handled their charge and the work can be explained to them. For this extra

half an hour per day, the workers are paid Rs.80 per month.

The employees may be required to work for overtime also. The workers are paid

for their overtime work. Double payment is given to the workers for their extraworking hours. No extra payment is given to the officers for their overtime work.

DEATH RELIEF FUND

The management of Kohinoor Steel (P) Ltd, as per the latest wage settlement,

agreed that the management and the workman (staff and workers) would contribute

as a financial assistance to the nominee of the deceased workman through the deathRelief Fund in the event of a workman expiring while in service in the following

manner:

Management: Rs 20,000/-

Workers: Rs 20/-

BENEVOLENT FUND

The management decided to contribute in the following ways, as benevolent fund

in case of normal or critical disease of the employee.

NORMAL DISEASE

Workers: Rs 5/- per employee

Management: Equal amount of gross money, collected from the employees

CRITICAL DISEASE

Workers: Rs 10/- per employee

Management: Equal amount of gross money, collected from the employees


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LEAVE

LEAVE RULES

Subject to the provisions of any agreement or award to thesubject, the workmenwill be entitled to annual leave with wages in accordance with the provisions of the

Factories Act, 1948, i.e. a workmen who has worked for a period of 240 days or

more during a calendar year, shall be allowed during the subsequent calendar,

leave with wage at the rate of one day for every 20 days for the work performed by

him during the calendar year.

An additional advantage is provided to the employees of Kohinoor steel (P) Ltd i.e.instead of 240 days if they work for 200 days also then they are eligible for the

privilege leave.

Calculation of P.L. = Number of days worked

20

The officers of Kohinoor steel (P) Ltd get 21 days privilege leave for 1 year.

Calculation of P.L. = 365 days x Number of days worked21

CASUAL LEAVE

The workman of Kohinoor steel (P) Ltd is entitled to casual leave in accordance

with the provision. The entire employees are entitled to 7 days in a year.

Employees are allowed to carry unveiled are casual leave up to 31 st May of the

subsequent year.

Any period of absence for 4 hours availed by the officers is to be treated as half-

day casual leave. If the period of absence is more than 4 hours than full day leave

is taken as leave.


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SICK LEAVE

The officers are entitled to 10 days sick leave in a year and the staff is

entitled is entitled to 5 days sick leave in a year.

Category Accumulation limit

Encashment

P.L C.L S.L P.L C.L S.L P.L C.L S.L

Officers 30 7 10 180 7+7 90 Yes No No

Staff 21 7 5 N.A 7 N.A Yes Yes Yes

Workers 15 7 - 45 7 Nil Yes Yes Yes


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INDUSTRIAL RELATION


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INDUSTRIAL RELATION

Industrial Relation refers to the inter-related relationship between the

employer, employees and external agencies. It does not constitute a

simple relationship but are a set of functional, inter-department

complexities involving historical, economic, social, psychological,

demographic, technological, occupational, political, legal and other

variables.

For maintaining good industrial relation, social, economical and

psychological satisfaction of workers should be kept in mind.

There is a proper wage system, which is governed by 4 years wage

settlement programmed.

Frequent meetings are held by the organizational heads with the

workers to know their psychological about the company.

Employee Perception Surveys conducted every alternate year

indicates good Industrial Relation.

The employees also equally participate in management process and

give their suggestion through suggestion schemes.

WELFARE FACILITIES PROVIDED TO ITS EMPLOYESS

There is a highly subsidized canteen.

The company organizes frequent health check-up camps for its

employees.

It provides milk to those who work in furnace. Bus facilities are provided to employees.

Uniform is provided to the employees.

Other facilities are also provided to the employees and their.

Arguments water resources through watershed management.


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STRATEGIC HRD PRACTICES


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Strategic Human Resource Management

In Kohinoor steel (P) Ltd

H.R. Philosophy

Human Resources are heterogeneous. They consist of many

different individuals, each of whom has a unique personality, a

combination of different emotional responses to different stimuli and

different values, attitude, motives and mode of thoughts.

It is very difficult to predict their behavior especially in an

organization where they work in a group.

Modern employees better educated posses greater skills have more

sophisticated technology available for their use and enjoy higher

standards of life than previous generation.

A human being himself determines what he contributed. If he is

motivated he will work for an organization more efficiently and

effectively.


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KOHINOOR STEEL PERSONNEL AND HUMAN RESOURCE

POLICY

In Kohinoor Steel other than the person who are on the

managerial position, the employees who are also working have the right

and freedom to be in union and associations and do have right to appear

before such institution with their issue through a unanimously elected

leaders, in front of the management so that the ambiguity is solved

peacefully by table to table negotiation.

The company also gives an equal importance or stress on equality

of life of workers and employees and also on their life in the

organization.

An equal opportunity is provided to every employee and according

to his or her performance they are also benefited. They are given equal

opportunity to identify their skills and competencies and also to reach

carrier goals effectively.

There is an immense equality of personnel and professional

potential in most of the employees and the organization is always trying

to increase and make realize the employees their potential through their

HR policies.

Due to significant HRD and Personnel policies its employees at all

the level are capable of building an excellent company producing value

packet product that fully met the expectation of the organization to

become the leader in the international market.


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It has very effectively implemented policies for the employees and

the HR personnel executive very efficiently performs their job for the

employees with their innovative efforts which are always beneficial to

the employees.

Main HRD objectives are to develop different efficient skills

among the employees to perform new functions and roles in the

organization.

Kohinoor Steel always tries to encourage new capabilities and

skills among the employees so that they perform their task for the

organization in a better way.

HRD and Personnel department always try to develop an

organizational structure of effectiveness and excellence by strengthening

teamwork, interpersonal relationship and collaboration.

All this is carried out in a systematic and a planned manner to get

the maximum outcome which would be beneficial for the organization

and the individual himself they are more specific towards their

employees all round development and for which they carry out many

statutory benefits for the employees.

RECRUITMENT SYSTEM IN KOHINOOR STEEL


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The right recruitment system is concerned with amplifying the demand

of the organization and to advise the right methods to meet the demand

of the organization.

In Kohinoor steel (P) Ltd, the annual manpower planning is done by the

corporate HR & and top Management. According to need of the

organization, it makes the planning of the kind of work force required in

different categories.

1. Recruitment of worker and staff.

2. Recruitment of officer.

The process of recruitment starts with the In principle approval of the

Joint Managing Director and to fulfill requirement to phases are

followed:-

There is an internal search for most appropriate candidate within the

group companies and if the search is fulfilled the person is transferred to

the department where required, then he undergoes INDUCTION

/ORIENTATION programmed where he is made acquainted with thework culture of that department and job training is also given .

If the criteria are not fulfilled within then is goes for external method for

recruitment.

The candidates who are finally selected have sand for training.

After completing their training as well the others undergo and

INDUCTION / ORIENTATION programs followed by Job training.

After this their performance is evaluated, if it found satisfactory they get

the final placement otherwise they are given retraining.


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PERFOMANCE

MANAGEMENT SYSTEM

PROJECT KIM


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A Strategic tool to facility Employees to align their personal objectives

and efforts to the organization objectives.

The Essence of this programmed is to help Employees

Become more accountable for the result those are to be achieved.

PERFORMANCE MANGEMENT SYSTEM

The company developed their performance management system in

consultation with various exports and;

Extensive study across the company.

Having constant dialogue with the key people in the organization.

Keeping in the view organization structure, culture & objectives.

And the end result was the emergence of performance management

system KIM. Project KIM is a program designed to help the

employees achieve performance excellence. It stands for Kohinoor

Management Investment in its managers. KIM achieves by this

continues process of sating performance targets, providing feedback

and rewarding employees for their results.

KIM is to recognize individual performance.

KIM is to create focus on target setting and planning.

KIM is to make the employees more accountable for the results

that are to be achieved.

KIM is to maintain records of individual performance and

contribution.

KIM is to raise the performance bar of the company.

KIM is to open dialogue channels between the employees and

superior.

KIM is to help employees grow not just within the organization but

also the organization.


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PERFORMANCE MANAGEMENT SYSTEM

Who All Are Involved In the KIM Process:

1. Create common 2.Ensure Clear Expectations

Understanding

Where are we going? What part do I play?

4. Ensure Commitment 3.Create Capacities

Whats in it for me? What will it take?

Performance

Planning

Part AppraisalRewards

Performance

Review

KIM


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The Employee! This is their performance review!

The Manager A key role of the manager is to guide the employees

in fulfilling theirs goals, provide assistance, and

Give regular feedback. In case we report. To two

people- one administratively (direct line) and

one functionally (dotted line) the performance

Planning meeting would take place with the person with

whom we have a direct-line reporting relationship.However, the employees have to get their performance

plan approved by the person with whom they a

dotted-line reporting relationship.

The managers

manager!

The managers role is facilitative In nature.

He ensures that the performance review has been

conducted objectively and disagreements voiced by the

employees during the process.

HR! HR ensures that performance review has been carried

out in a valid manner keeping in mind the norms and

regulations of the organization.

THE KIM PROCESS


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The KIM process consists of three steps:-

Performance Planning

Periodic Feedback

Performance Review

KPS CLANDER: -

Jan-Fab: - Performance Planning

Jun-July: - Part Appraisal

Dec: - Review and Feedback

Step 1


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Performance Planning

- Performance Planning helps us to answer the question: What

isexpected of me?

- What is expected of us is, of course, cascaded from what is

expected of the organization, the Division and the BA/BU

Company Targets

Division Targets

BA Targets

BU Targets

Employee Targets

Time Frame


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The performance planning process takes place in the beginning of the KIM

calendar, after the organizational, division, BA and BU target have been set.

Initiating the performance planning process

The process gets initiated with a formal mail from the Managing Director (MD) tothe entire organization announcing the start of process. Employees are apprised of

the KSPL targets, Division targets, BA targets and BU targets through the

Manager.

Once this has been done the employees and the Managers meet to discuss their

performance plans. It is both the employees and Managers responsibility to arrange

for a meeting date. Before going for the meeting everyone should prepare for it

appropriately so as to derive the maximum benefit.

Steps In Performance Planning Meeting

Set Targets

Write Action Plans

Assign Weights

Document BRs

During The Performance Planning Meeting

Set targets

Employees and managers jointly cascade the organization Division BA-

BU Targets to their individual targets. Out of this five-six targets at least one

has to be Development target. How to set a good target. A good / SMART

target is one that is:

1. Simple

2. Measurable

3. Attainable

4. Realistic

5. Time-bound


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How do we make our targets Smart?

We can take the help of an example:

Target A: Improve sales in my territory.

Target B: Increase sales of wire ropes in my territory.

Now we need to see whether target A meet our SMART criteria? It is simple

but not exactly measurable. On the other hand. Target B: It is not only

simple, It is also measurable (25%), attainable, realistic, and time-bound.

What is a Developmental Target?

A Development Target is one which is focused on personnel department. It may

not have and immediate and or direct impact to business results but it would

surely have along term impact.

In other words suppose be make an excellent sales pitch that results in business for

the organization, our efforts would have and immediate, direct and visible impact

on that years financial results. On the other hand, if we acquire some new skills or

competences the organization would enjoy its benefits for a long time, although the

results may not be immediately apparent. While it is important organizations

perform well in the present, it is also important that they prepare for the future.

Employees Development Targets help the organization to prepare for the future.

These Target need to belong to the sake of training-it is a waste of both our time

and the organizations resources. Development targets can be extremely powerful,

for they could result in our attaining skills that could differentiate performance.

Write Action Plans

After setting our Targets we need to write our Action Plans against each.

What is an Action Plan?

It is a structured approach to realizing our Targets. What are the most important

actions we would undertake to realize our targets? An Action Plan helps us think

through the entire Process of achieving our target and ensured that we have

planned for the resources that we would require in the future. Thinking through the

process also helps us avoid setting unrealistic targets for the year.


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Assign Weights

It is obvious that not all the targets would be equally critical from both the

organizations and our personal development perspective. Therefore we need to

assign weight to each target. While assigning weight Manager has to keep threethings in mind. One, he should take a collaborative approach to setting weight.

Two, the sum of the weight cannot exceed 100%. And three, that the weight should

be indicative of priority attached to the target and of the time and effort that its

achievement would involve.

Document Baseline Responsibilities

Baseline Responsibilities are the tasks to be done a regular basis, not necessarily

daily. focus is mainly on tracking only those BRs that are considered critical to the

employees role, in times of the spent on them or the priority accorded to them .for

the purpose of the Performance Planning process, where the main aim is to answer

the question What is expected of me the employees and their managers should

jointly list our the five or six most critical tasks that we perform on a regular basis.

Ending the Performance Planning Meeting at

At the end of the performance planning meeting the employees has to make three

photocopies of the UIM form.

The employees keep the original themselves.it is their performance after

all!

One photocopies each to their managers and to the receivers, and gives one

to the HR department.


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STEP 2

Periodic Feedback or (Part Appraisal)

Improving Your Aim

Time Frame

There is part appraisal in June July. Between the time targets are time targets are

set at the beginning of the UIM cycle and the time they are to be received.

It would take 6 months after the period 1 feedback. While these are formal meeting

for the specific purpose of providing feedback, the manager are expected to give

the company information feedback all the time .the company is also expected to

ask for feedback at suitable intervals or specific instance.

The Role of Information Feedback

Informal feedback cannot and should not replace the periodic feedback meeting.

The reason is that informal feedback tends to be unstructured. More over, while

informal feedback tends to be about the immediate past, formal feedback makes

one take a longer term, and hence much more objective view. However, this is not

to down play the importance of informal feedback, the idle combination or self

development is regular informal feedback coupled with formal periodic feedback.

The Part Appraisal process or (periodic feedback) Process

The dates for the periodic feedback are agreed upon during the formal planning

session. Any changes made will have to be agreed upon by both the company and

its manager.

Planning for the periodic feedback Meeting

Before the periodic feedback meeting the managers are expected to do thefollowing things:

Gather Data about the performance. Sometimes we tend to miss out

important facts so is a good idea to document our thoughts.

The employees need to think how they could have bettered their

performance in the last 6 months period. What went wrong, what went right and

what could have gone better and where we might want some guidance from our

managers?


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During the Periodic Feedback Meeting

During the Appraisal meeting, the managers give to the employees structured

feedback on their performance in the last 6 month. The employees need to

inform the managers about their performance against each of their target. Bothneed to discus what went well, what did not go well and what could have been

gone better. The aim of the feedback meeting is to find a common solution to

the employees performance and the development issue. The managers also

have to give feedback to the employee on their performance in their baseline

responsibilities. And the end the mutual discussion, the manager fills up their

comments in the appropriate space in the employee UIM form.

Ending the Part Appraisal Meeting

At the end of periodic feedback meeting the employees make free copies of

their UIM form and do the following:

Keep the original copy of the UIM form.

Give one photo copy each to the respective managers, reviewers and to the HR

Department


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Step 3

Performance Review (Final Appraisal)

- Score Target- Score BRs

- Performance Summary

- Self Appraisal

- Developmental Plan

- Attestations

During the performance meeting

Score Target

The employee and the manager together discuss the employee performance on

each of the Targets. On the basis performance the managers give adequate

feedback and score the employees on the basis of five / Six Targets using the

four points scale. There is a visual depiction of the scale along with the

description of the four points. This is to facilitate scoring by the managers. e.g.:

How would the managers score the employees if he achieves 89% of their

targets. And what they achieve 91%?. The answer is provided by the visual

scale. In the first case, the score is 2 and in the second 3. Next the managers

multiply these scores with the weights that had been decided during the

performance planning meeting and arrive at the weighted score. (5point scales)

0- Does not meet expectations

1- Meets few expectations

2- Meets most expectations

3- Meets all expectations4- Exceeds all expectations

Score base line Responsibilities

Here the managers provide a detailed feedback to the employees on their

performance on each of their Baseline Responsibilities. Based on their

performance on their Baseline Responsibilities, the managers give them a

composite score using the 5 point scale.


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Performance Summary

The performance summary gives the employees a consolidated picture of their

Performance and tablatures their Total Performance Racing. The procedure is

as follows:

Copy all the weighted scores from the various pages to the Performance

summary.

Add up the weighted scores to Arrive at the Total Weight Score.

Multiply the Total weighted Score by the Weight to arrive at the Target

setting. (Same procedure for Baseline Responsibilities).

Calculation Performance Rating

The sum of Target Rating and Baseline Responsibilities Rating give us our

Performance Rating.

Self Appraisal

After the managers have finished scoring the employees on the basis of their

performance, the employees have to do their own Self

Appraisal.

Development Plan

Now the employees need to create their own Developmental. What is a

Developmental Plan.? Developmental plan refers to a structured plan to help the

employees to enhance their performance in their current role and prepare for

new roles.

Attestations

This is last of the performance review process. All the managers, the reviewer

and the employees have a different role to plan in this.

Role of the employee

Is to attest whether or not the Performance Management process was conducted

to the employees satisfaction? Do they think it was fair and timely? Did they

receive adequate feedback? If they are satisfied they need to sign below and ifnot then need to explain the reasons for dissatisfactions.


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Role of the Manager

In case that the Performance Review process was conducted to the employees

satisfaction and they indicated that to the managers then the manager just need tosign, in case the employees have expressed dissatisfaction, the managers need to

explain the reason for their dissatisfaction and their comments thereon.

Ending the Performance Review Meeting

At the end of the performance review meeting, the employees send a copy of their

form to the reviewer.

Role of Reviewer

The role of the reviewer is essentially quality control. Has the manager conducted

the Performance exercise as per norms? The Reviewer may go over the scores

awarded by the manager and check the validity. In case he/she is not satisfied,

he/she may suggests are evaluation of performance. This evolution takes place

between the employees, their manager and the reviewer.

The Reviewer has another major role: adjudication. What happens if the employees

disagree with the Managers Score and indication it as much? In such a case, they

Reviewer could ask for a re evolution of performance based on his assessment of

reasons of dissatisfaction.

After the Reviewer is satisfied with the validity of the Scores, he would sign.

Thereafter, the reviewer makes three copies of the UIM form, and:

Send the original to the HR Department.

Give one photocopy each to the Managers and their Manager and keep

with him/her.

The officially close the performance Review process.

Final Appraisal Scores

The performance appraisal template will adopt the new global 5-point scale forevaluation.


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0- Does not meet expectation

1- Meets few expectations

2- Meets most expectations

3- Meets all expectations4- Exceeds all expectations

BEHAVIOURAL GRID

Along with Performance appraisal the employees are also appraised with the

behavior grid.

Behavior grid and Performance has given equal weight age.

Final Appraisal-Rating

Results Behavioral Grid

o Results grid guides the supervisor in assessing the performance of

the employee against every target. (what has been done)

o Behavior Grid guides the supervisor in evaluating the performance of

the employees with respect to his behavior. (how the results were achieved)

Result- Behavioral Grid


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R

E

S

U

L

T

S

ExceedsExpectations

Superior Results,Behavior needs

improvement

Superior Results Exceptional Performer

Fully,MeetsExpectations

GoodResults,BehaviourneedsImprovement

Strong Performer Superior Performer

Partly meetsExpectations

UnsatisfactoryPerformar

Good Behavior,Results needsImprovement

Superior Behavior,results needs improvement

Needs Improvement Good Superior

B E H A V I O U R S

Rating outcome Color code KPS RATING

Rating 1Does not meet expectations

Rating 2Meets few expectations

Rating 3Meets most expectations

Rating 4Meets all expectations

Rating 5Exceeds all expectations

Performancerating and its relation to the results behavior matrix indicator


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Behavior Checklist

Results orientation

Strategic orientation

Teamwork &collaboration

People development

Personal leadership

Change leadership

Intercultural sensitivity &effectiveness

Customer &markets orientations

Detailed Expiations:

Results Orientations

- Top line orientation- Cost management

- Risk management

- Drive to meet or exceed targets- delivers on promises

- Achievement in the face of unforeseen obstacles

Strategic Orientations:

- Linking of business objectives to the wider organizations strategic

- Contribution to strategy outside own area of influence.- Develops strategic approach for own area of influence

Team Work and Collaboration

- Demonstrates One KSPL behaviors

- Contribution to the results of others

- Sharing of information and ideas outside own area

- A Giver shares talent outside own area


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Data Analysis

1. Good Performance Management System is highly required for the organization

effectiveness.

strongly

disagree

6%

Disagree

13%

Neutral

16%Agree38%

Strongly Agree

27%

Neutral

Disagree

strongly disa

Strongly Agr

Agree

Key Findings:

The above data shows that 70% of total employees surveyed in favour of having a good

performance management system for the organization effectiveness.

2. Six-monthly PMS is good

stronglydisagree

10%

Disagree

13%

Neutral21%

Agree

47%

Strongly Agree

9%

Neutral

Disagree

strongly disa

Strongly Agr

Agree

Key Findings:

The above data shows that 68% agree with 6 monthly PMS

3. The communication between superior and subordinates is good


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strongly

disagree

7%

Disagree

8%

Neutral

29%Agree

22%

trongly Agree

34%

Neutral

Disagree

strongly disa

Strongly Agr

Agree

Key Findings:

The above data shows that 74% agree with this.

4. It should be applicable to all employees

stronglydisagree

7%

Disagree

10%

Neutral24%

Agree

33%

Strongly Agree

26% Neutral

Disagree

strongly disa

Strongly Agr

Agree

Key Findings:

The above data shows 60% disagree with this.

5. The objective of carrying out PMS in organization is for salary increment,promotion, job enrichment, rewards and incentives.


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strongly

disagree

10%

Disagree

16%

Neutral

24%Agree

36%

Strongly Agree

14%

Neutral

Disagree

strongly disa

Strongly Agr

Agree

Key Findings:

The above data shows that 50% of the people agree with this.

6. Employees performance is rewarded by adequate monetary & non-

monetary benefits.

strongly

disagree8%

Disagree

16%

Neutral

18%

Agree

24%

Strongly Agree

34%

Neutral

Disagree

strongly disa

Strongly Agr

Agree

.

Key Findings:


7.PMS is necessary in the organization.


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strongly

disagree

6%

Disagree

4%

Neutral

27%Agree

26%

Strongly Agree

37%Neutral

Disagree

strongly disa

Strongly Agr

Agree

Key Findings:


8. The system is useful to access/evaluate the performance.

strongly

disagree

20%

Disagree

23%

Neutral

14%

Agree

22%

Strongly Agree

21%

Neutral

Disagree

strongly disa

Strongly Agr

Agree

Key Findings:



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9. The system provides you an opportunity for open discussion on mutual

expectations, achievements.

strongly

disagree5%

Disagree

15%

Neutral

36%

Agree

26%

Strongly Agree

18%

Neutral

Disagree

strongly disa

Strongly Agr

Agree

Key findings:


strongly

disagree

12%

Disagree

20%

Neutral

15%

Agree

31%

Strongly Agree

22%

Neutral

Disagree

strongly disa

Strongly Agr

Agree

10. The system satisfies Future developmental needs of employees.Key Findings:



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11. The systems provide an opportunity to the employee for thefurther insight intohis strength and weaknesses.

Strongly Agree

32%

Agree

33%Neutral

13%

Disagree

17%

strongly

disagree

5% Neutral

Disagree

strongly disa

Strongly Agr

Agree

Key Findings:


12. PMS in your organization gives more weight age to task assigned to individual.

Strongly Agree29%

Agree40%

Neutral

15%

Disagree

11%

strongly

disagree

5%Neutral

Disagree

strongly disa

Strongly Agr

Agree

Key Findings:



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13. PMS is effective in identifying training needs.

Strongly Agree

50%

Agree

30% Neutral

8% Disagree

8%

strongly

disagree

4%

Neutral

Disagree

strongly disa

Strongly Agr

Agree

Key Findings:The above data shows that 80% agree with this.

14. The present PMS is effective in assessing employees abilities in relation to

their tasks.

Strongly Agree44%

Agree

24%

Neutral

22%

Disagree

8%

strongly

disagree

2%

Neutral

Disagree

strongly disa

Strongly Agr

Agree

Key Findings:The above data shows that 68% agree with this.


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15. The systems help in identifying the hidden talents of any individual

Strongly Agree31%

Agree

26%

Neutral

23%

Disagree

9%

strongly

disagree

11%

Neutral

Disagree

strongly disa

Strongly Agr

Agree

Key Findings:


16. The Managers spends time and discuss with their subordinates about their

performance.

Strongly Agree

32%

Agree

27%

Neutral

20%

Disagree

13%

strongly

disagree8%

Neutral

Disagree

strongly disa

Strongly Agr

Agree

Key Findings:



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17. PMS helps in critical identification or improvement in areas through

constructive feedback:

Strongly Agree

23%

Agree

28%Neutral

14%

Disagree19%

strongly

disagree

16%

Neutral

Disagree

strongly disa

Strongly Agr

Agree

Key Findings:


18. PMS help in judging employees competency and also leads to self appraisal.

Strongly Agree9%

Agree

27%

Neutral

31%

Disagree

22%strongly

disagree

11%

Neutral

Disagree

strongly disa

Strongly Agr

Agree

Key Findings:



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19. PMS is use full for better and harmonious industrial relations.

Strongly Agree

16%

Agree

28%

Neutral

28%

Disagree

14%

stronglydisagree

14%

Neutral

Disagree

strongly disa

Strongly Agr

Agree

Key Findings:


20. The process of PMS evaluation is transparent.

Strongly Agree9%

Agree

54%

Neutral

14%Disagree

12%

strongly

disagree

11%

Neutral

Disagree

strongly disa

Strongly Agr

Agree

Key Findings:



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21. Negative feedback reduces the persons motivations and performance.

Strongly Agree

18%

Agree

10%

Neutral

22%

Disagree

30%

strongly

disagree20%

Neutral

Disagree

strongly disa

Strongly Agr

Agree

Key Findings:

The above data shows that 50% disagree with this.

22. PMS is a systematic and scientific approach.

Strongly Agree

20%

Agree

34%

Neutral

24%

Disagree

10%

strongly

disagree

12%

Neutral

Disagree

strongly disa

Strongly Agr

Agree

Key Findings:


23. PMS is fir deciding promotion and motivating the employees.


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Strongly Agree

14%

Agree

37%

Neutral

29%

Disagree

10%

strongly

disagree

10%

Neutral

Disagree

strongly disa

Strongly Agr

Agree

Key Findings:


24. PMS is full of favoritisms, partialities and bias.

Strongly Agree

9%

Agree

33%Neutral

44%

Disagree

9%strongly

disagree

5%

Neutral

Disagree

strongly disa

Strongly Agr

Agree

Key Findings:

The above data shows that 56% neutral with this.

25. Behaviors grid leads to results and strategic orientation.


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Strongly Agree

21%

Agree

48%

Neutral

15% Disagree

10%

strongly

disagree

6%

Neutral

Disagree

strongly disa

Strongly Agr

Agree

Key Findings:


26. Behaviors grid leads to team work and inter cultural sensitivity and

effectiveness.

Strongly Agree

25%

Agree

47%

Neutral

22%

Disagree

4%

strongly

disagree

2%

Neutral

Disagree

strongly disa

Strongly Agr

Agree

Key Findings:


27. Behaviors grid leads to customer and market orientation.


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Strongly Agree

32%

Agree

35%

Neutral

16%

Disagree

12%

strongly

disagree

5%

Neutral

Disagree

strongly disa

Strongly Agr

Agree

Key Findings:


28. PMS is essential in organizational development.

Strongly Agree

22%

Agree

41%

Neutral

13%

Disagree

20%

strongly

disagree

4% Neutral

Disagree

strongly disa

Strongly Agr

Agree

Key Findings:



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Overall Evaluation of PMS from Employees point of view:

Strongly Agree

22%

Agree36%

Neutral

21%

Disagree

11%

strongly

disagree

10%

Neutral

Disagree

strongly disa

Strongly Agr

Agree

Key Findings:

The above data shows that 57% agree that PMS is good for organizations as well

as employees overall development.


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CONCLUSION


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CONCLUSION Good HRD practices are a sign of an organizations success.

Its industrial peace and harmony are both dependent on it, as it leads to good

industrial relations. Full involvement of employees, promoting individual career development,

honoring of commitments are some of the features of good HR practices.

A good performance management system is of benefit to both individual and

the organizations they work for.

Organizations need to create a culture that will value achievement, an

appraisal or review that is result oriented helps to create and maintain such a

culture.

Employees are given proper job descriptions so that some of his questions

are answered like, do I know whats expected of me? Or Do I understand companypolicies and code of conduct?

The grade less organization structure motivates the employees they feel they

are treated as equals.

The basic question answered through a good performance management

system are, when and how the individual receives feedback and coaching about

progress he or she is making against these targets, how these targets are reviewed,

what assistance he or she needs to meet these targets, and what specific training

and development he or she needs, both in the short and in the longer term.

Objectives set were clear, definite, and measurable in terms of quality andquantity, consistent with the desired end result of the organization.


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RECOMMENDATIONS ANDSUGGESTION

RECOMMENDATIONS AND SUGGESTOINS


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As per my analysis the feedback should be conducted quarterly rather than six

monthly reviews.

1. More interaction is needed between the employees and also between

employees.

2. More awareness among the employees regarding the ongoing the

performance management system in the organization. The performance

managements system constitutes only 15% weight age of the total salary in my

suggestion it needs to be increased at least to 40%of total salary weight age.

3. As this would give encouragement to employees to perform better.

4. Give motivation to the employees and high moral as well.

5. Training should be given to mostly to those who are less efficient and

weak in their job areas.


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RESEARCH

METHODOLOGY

Research Methodology


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Research Methodology is a way to systematically show the research problem. It

may be understood as a science of how research is done scientifically. We can say

that research Methodology has many dimensions and research Method do

constitute a part of research methodology is a wider.

The study of research methodology gives the student the necessary training in

gathering materials and arranging or coordinating them, participation in the field

work when required, and also training in the techniques for the collection of data

appropriate to particular problems, in the use of statistics, questionnaires and

controlled experimentation and in recording evidence, sorting it out and

interpreting it Research Methodology is helpful in various field. It consists of

series of action or steps necessary to carry out research and the desired sequencing

of these steps.

Research Methodology includes various steps. There should be a systematic way

of collection of data and presentation of the project report. Proper decisions have to

be taken based on the data collection. A researcher may select any of the following

data:

Primary data.

Secondary data.

Primary data

Primary Method is the method, which uses primary data in other words when data

are collected afresh and for the First Time and thus happens to be original in

character. There are various methods by which data can be collected. The

important ones are

1. observation method

2. Interview method

3. Questionnaire method

In this project I have used questionnaire method.

Secondary data


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The study has used secondary data that was taken from secondary like company

internet-site ,companys in library and various internal report published by

Kohinoor Steel (p) Ltd.

This study comprises of HRD practice and study of the Performance ManagementSystem of the company KOHINOOR STEEL (P) LIMITED. By understanding

the existing system, analysis and inference were on their efficiency and

effectiveness.

Research Design

Research design facilities the smooth sailing of the various research operation

,these by making research as efficient as possible fielding maximal information

with minimal expenditure of effort, with to achieving the objectives the study arelevant questionnaire was prepared and circulated among a random sample of 50

employees mainly consisting of officers. The views on each part raised in the

questionnaire.

The data thus obtained formed the basis of information regarding the existing level

of employee satisfaction regarding the Performance Management System and

analysis in done of the results.

Sampling plan

The sampling plan consists of sampling units which mainly consisted of officers

.They are the people being appraised through the Performance Management

System , so the study helps us to analysis the satisfaction level of the employees.

Sampling size

It refers to the numbers of items to be selected from the universe to constitutes a

sample .I have selected a sample of 75 people for my analysis.


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BIBLIOGRAPHY


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BIBLIOGRAPHY

Book Referred:-

Human Resource Management by:-

V.S.P.Rao

C.B.Gupta

K.Ashwathappa

Personnel Management by: - C.B.Manoriya

Internet:-

www.zigonperf.com

http://humanresource.about.com/od/performancemanagement

www.google.com

PMS Questionnaire: -
http://www.zigonperf.com/http://humanresource.about.com/od/performancemanagementhttp://www.google.com/http://www.zigonperf.com/http://humanresource.about.com/od/performancemanagementhttp://www.google.com/


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Sr.No.Questions

StronglyAgree

Agree Neutral DisagreeStronglyDisagree

1

Good Performance management system ishighly required for the organizations

effectiveness.

2Six-monthly PMS is good.

3The communication between superior andsubordinates is good.

4 It should be applicable to all employees.

5

The objective of carrying out PMS inorganization is for salary increment,promotion, job enrichment, rewards andincentives.

6Employees performance is rewarded byadequate monetary & non monetary benefits.

7 PMS is necessary in the organization.

8The system is useful to access/evaluate theperformance.

9The system provides you an opportunity foropen discussion on the achievement.

10The system satisfies future developmentalneeds of employees.

11

The system provides an opportunity to theemployee for the further insight into hisstrength and weakness.

12PMS in your organization gives more weightage to task assigned to individual.

13 PMS is effective in identifying training need.

14The present PMS is effective in assessingemployees abilities in relation to their tasks.

15The system helps in identifying the hiddentalent of the individual.

16 The manager spends time and discuss withtheir subordinates about their performance.


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