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A STUDY ON PERFORMANCE APPRAISAL MANAGEMENT SYSTEM AT

INDIAN OIL CORPORATION LIMITED(A.O.D), DIGBOI REFINERY

A SUMMER INTERNSHIP PROJECT SUBMIITTED IN PARTIAL FULFILLMENTOF THE REQUIREMENT FOR AWARDING THE DEGREE IN MASTER OF

BUSINESS ADMINISTRATION, NERIST

SESSION: 2012-2014

UNDER THE ESTEEM GUIDANCE: SUBMITTED BY:

ORGANIZATIONAL GUIDANCE NAME: Junmoyee Gogoi

Mrs. Sanjana Saikia ROLL NO: MBA/12/18

Senior Employee Relation officer Centre for Management Studies

(SERO) NERIS


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Dated: 18th July,2013

BONAFIDE CERTIFICATE

This is to certify that the project entitled, PERFORAMNCE APPRAISAL

MANAGEMENT SYSTEM at I.O.C.L (AOD) Submitted by Junmoyee Gogoi,

have been prepared under my supervision and guidance during the period from 4th

June- 18th July, as SUMMER TRAINING for partial fulfilment of the requirement for

the Degree of Master of Business Administration (MBA) under North Eastern

Regional Institute of Science and Technology.

It is further certified that the said project report has not been submitted anywhere for

any other purpose previously.

I wish her a successful career and a prosperous life ahead.

A.K TAMULI

Chief Human Resource Manager

INDIAN OIL CORPORATION Ltd.

(Assam Oil Division), Digboi.


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DECLARATION

I, Junmoyee Gogoi, bearing roll no: MBA/12/18 of Centre of Management Studies,

NERIST, hereby declare that the project titled PERFORMANCE APPRAISAL

MANAGEMENT SYSTEM at DIGBOI Refinery has been prepared by me and has

been submitted in partial fulfillment for awarding the degree in MASTER OF

BUSINESS ADMINISTRATION, NERIST.

Place: DIGBOI NAME: Junmoyee Gogoi

Date: 19th july, 2013 ROLL NO: MBA/12/18

Centre of Management Studies

NERIST, NIRJULI


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TABLE OF CONTENTS

PREFACE..i

ACKNOWLEDGEMENTii

EXECUTIVE SUMMARY..iii

ANNEXURES..VI

CHAPTER TITLE PAGE NO

I

II

III

IV

V

VI

VIII

IX

X

XI

XII

INTRODUCTION

COMPANY PROFILE

OBJECTIVES OF THE STUDY

PERFORMANCE MANAGEMENT SYSTEM AT DIGBOI

RESEARCH STUDY

DATA ANALYSIS AND INTERPRETATION

Tables and charts

FINDINGS OF THE STUDY

SUGGESTIONS AND RECOMMENDATIONS

CONCLUSION

LIMITATIONS OF THE STUDY

SCOPE FOR FURTHER STUDY

9-11

12-19

20

21-32

33-35

36-57

58-59

60

61

62

63


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PREFACE

Projects are an indispensable part of any kind of formal education. They help us tohave a practical exposure as well as a better outlook of the subject, which we are studying. In a

practical course like MBA, the students are equipped with strong theoretical knowledge about

the business operations and time tested methods of running a successful business. To make this

theoretical knowledge stronger, the students are assigned certain projects in various

organizations to get an idea of the practical working styles.

I was assigned to work in Indian Oil Corporation Limited (IOCL), Digboi. The topic of study

was Performance Management System at Digboi Refinery (DR).The projects commenced from

4th

June, 2013 to 18th

July, 2013.

In order to make the data and findings easily understandable, efforts have been made to

present the information in simplified, lucid and organized manner.Wherever possible tables

and figures have been incorporated. Suggestions and recommendations have been made on the

basis of findings herein.

It gives me immense practical exposure to the practical working patterns and the

environment. It will be satisfied if the organizations get benefited from the study and its

findings.


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ACKNOWLEDGEMENT

This project entitled Performance Appraisal Management System at IOCL, Digboi

Refinery would not be possible without the support, guidance, help, cooperation and

encouragement of a number of people to whom words are not adequate to express my

gratitude.

At the outset, I express my thanks to the management of IOCL, Digboi for giving me the

opportunity to carry out the project assignment in their esteemed organization.

I express my sincere gratitude to, Mr. A.K Tamuli, Chief Human Resource Manager (CHRM),

who has appointed us our guide and for giving his time and concern for the completion of the

project.

Also, my organizational guide Mrs. Sanjana Saikia, Senior Employee Relation Officer who has

helped a lot to show the way to the successful completion of the project.

I would also like to express my gratitude to Mr. Akash Bora, M(IS) for encouraging and

supporting me with extra information about my topic and the organization.

Date: 18th July. 2013 Junmoyee Gogoi

Place: IOCl, Digboi refinery


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EXECUTIVE SUMMARY

Title: Performance Appraisal Management System at IOCL (A.O.D), Digboi Refinery

MAIN OBJECTIVES

Creation of high performance orientation at Indian Oil.

Stronger alignment of individual performance with organizational goals.

Higher degree of transparency, uniformity and process efficiency.

Performance ownership at the employee level.

RESEARCH METHODOLOGY

Research plan:

The research plan is done with the primary objective of finding out the management of

Performance appraisal at IOCL,Digboi Refinery. Thus a detailed study of the performance

appraisal of the employees at IOCL and its impact is very important to get the proper insights,

which is vital for the development of the research instrument which is to be undertaken during

the study. All the relevant information has been collected through questionnaire and

observation.

Further suitable rating scales have been developed to measure the view as well as

outlook of employees towards the Performance management system at Digboi refinery. The

ratings are later analyzed to get a clear picture of the views of the employees of IOCL, Digboi

towards the performance evaluating system and their satisfaction level, and suggest ways andmeans towards the given to them for their greater participation and involvement towards the

organizations goals and objectives.

Sources of Data:

The primary data has been collected from the respondents through questionnaire

personally.

The secondary data has been obtained from the organizations literatures, online

search and journals.

Sample size:

IOCL has in total twenty-one departments, comprising of around 994 employees comprising

of both officers and non-officers. The sampling plan would include gathering of information

from at least fifty (50) employees of Digboi Refinery, out of two hundred seventy one officers

(271).


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Sampling procedure:

The sampling Unit would include the employees of Digboi Refinery.

The sampling technique to be used in the survey will be simple random sampling, because

the population is homogeneous and a particular sampling frame is available for the researchprocess.

Limitations:

The study suffers from time constrain as it is completed within the short time span of

forty-five days.

There was a dearth of free time in the hand of employees. As such carrying out a

survey and getting the questionnaires filled correctly on time was a real hard desk.

As the organization is always in operational state as per its busy schedule, so the

employees get very less time to express their views.

The feedback given by the various employees is based on their experiences and

perceptions and may suffer from some biasness.

Most of the respondents refused to divulge details regarding their designation and this

created a problem as the data could not be analyzed with respect to this particular

variable.

MAJOR FINDINGS:

From the survey on the topic Performance Management System at IOCL, i have

found that the overall performance system of IOCL is beneficial for its officers.

The performance of employees in IOCL is evaluated perfectly with a valid and effective

performance appraisal system and this increase the work efficiency of the employees

leading to accomplishment of organizational goal.

From the study, it is found that E-PMS is the annual performance plan to be prepared

by employee before start of the year and rating will be done at the end of the year

based on performance. Also it gives the total rating by supervisor after completion of

E-PMS by CSA.

RECOMMENDATION:

Indian Oil is an organization which believes in team work. However the E-PMS

appraisal is an individualistic appraisal which does not cater too much about team work.

This area where the team work is concerned- needs to be incorporated. From the study it

is also suggested that the present E-PMS system should not be person specific and should

be above individual influences.


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Chapter I

Introduction

Performance appraisal is the vital role played by HR department. It is the integral

part of management in an organization. Performance appraisal is the systematic method

through which the job performance of the employee is evaluated. Performance Appraisal is a

part of career development & consist regular reviews of employee performance within

organization.

1.1 Definition of Performance appraisal system:

According to Flippo, "Performance appraisal is the systematic, periodic and an impartial

rating of an employees excellence in the matters pertaining to his/her present job and his/herpotential 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.

According to Cummings The overall objective of performance appraisal is to improve the

efficiency of an enterprise by attempting to mobilize the best possible efforts from individuals

employed in it. Such appraisals achieve four objectives including the salary reviews, the

development and training of individuals, planning job rotation and assistance promotions.

1.2 Characteristics of Performance Appraisal:

The main characteristics of performance appraisal are as follows:

Performance appraisal is a process consisting of a series of steps.

It is the systematic examination of an employees strengths and weaknesses in terms

of the job.

Performance appraisal is a scientific or objective study.

It is an ongoing or continuous process wherein the evaluations are arranged

periodically according to a definite plan.

The main purpose of performance appraisal is to secure information necessary for

making objective and decisions on employees.

1.3 Advantages of Performance Appraisal:


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Comparing actual performance with standard laid

Discussion of appraisal with employees

Corrective actions

Establishing standards of performance

Communicating performance appraisal

Measuring actual performance

It provides information for making and enforcing decisions about promotions, pay

increases, lay off transfers.

It serves to guide employee development.

It puts a psychological pressure on people to improve performance on the job.

It serves to maintain fair relationships in groups.

It makes executives more observant of their subordinates.

It serves as a means for evaluating the effectiveness of devices used for the selection

and classification of workers.

Wage increase may be justified.

Deficiencies and shortcoming may be removed.

Employee may also introspect himself in the light of performance.

1.4 Steps of Performance Appraisal:


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It is essential that every employee enjoy the benefit of looking at his performance

appraisal at least once in a year. A manager should analyze the performance of the employees

objectively against the set standards. It is desirable for the manager to meet and discuss with

the employees about the appraisal process before writing as it fosters mutual understanding of

the process and to that extent it enhances the employees acceptance of the outcome.

1.5 Factors Affecting Performance Appraisal Systems:

Performance appraisal programs are affected by some factors. Therefore for

implementing good appraisal systems the following are necessary.

It should be easily understandable. The forms, which are more difficult to read and

understand, are not effective performance appraisal systems.

The appraisal programs must have support of all line people who administer it. If line

people think it is too theoretical, too ambitious, and too unrealistic or that it has been

foisted on them by ivory tower staff consultants who have no comprehension of the

demands on the time of the line operator.

The appraisal system should fit the organizational operations and structure the form

constructed and the factors framed should be suitable for the organizational culture and

structure.

The appraisal system should be valid and reliable.

1.6 Conclusion:

Performance appraisal system is a critical part of strategic HRM.

Performanceappraisals of Employeesare necessary to understand each employees abilities,

competencies and relative merit and worth for the organization. The latest mantra being

followed by organizations across the world being "get paid according to what you contribute"

the focus of the organizations is turning to performance management and specifically to

individual performance.


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Chapter IICOMPANY PROFILE:

INDIAN OIL CORPORATION LIMITED (IOCL)

Incorporated as Indian Oil Company Ltd. on 30th June 1959, it was renamed as Indian Oil

Corporation Ltd. on 1st September 1964 following the merger of Indian Refineries Ltd.

(established 1958) with it. IndianOil and its subsidiaries account for approximately 48%

petroleum products market share, 34% national refining capacity and 71% downstream sector

pipelines capacity in India.

The Indian Oil Group of companies owns and operates 10 of India's 20 refineries with acombined refining capacity of 60.2 million metric tones per annum (MMTPA, .i.e. 1.2 million

barrels per day). These include two refineries of subsidiary Chennai Petroleum Corporation Ltd.

The Corporation's cross-country network of crude oil and product pipelines, spanning over

10,652 km and the largest in the country, meets the vital energy needs of the consumers in an

efficient, economical and environment-friendly manner.

IndianOil is currently investing Rs. 47000 crore in augmentation of refining and pipeline

capacities, expansion of marketing infrastructure and product quality upgradation.

IndianOil is also the highest ranked Indian company in the Fortune Global 500 listing, at 125th

position. It is also the 21st largest petroleum company in the world and the # 1 petroleum

trading company among the national oil companies in the Asia-Pacific region.

VISION OF IOCL:

A major diversified transnational integrated energy company, with national leadership and

strong environment conscience, playing a national role in oil security and public distribution.


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MISSION OF IOCL:

To achieve international standards of excellence in all aspects of energy and diversified

business with focus on customer delight through value of products and services and cost

reduction.

To maximize creation of wealth, value and satisfaction for the stakeholders.

To attain leadership in developing, adopting and assimilating state-of theart technology

for competitive advantage.

To provide technology and services through sustained Research and Development.

To foster a culture of participation and innovation for employee growth and

contribution.

To cultivate high standards of business ethics and Total Quality Management for a strong

corporate identity and brand equity.

To help enrich the quality of life of the community and preserve ecological balance and

heritage through a strong environment conscience.


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VALUES OF IOCL:

Indian Oil nurtures a set of CORE values which are-

CARE stands for Concern, Empathy, Understanding Cooperation and Empowerment.

INNONATION stand for Creativity, Ability to learn/ absorb, Flexibility and Change PASSION stands for Commitment, Dedication, Pride, Inspiration, Ownership, Zeal and

Zest.

TRUST stands for Delivered promise, Reliability, Dependability, Integrity, Truthfulness

and Transparency.

OBJECTIVES OF IOCL:

The main objectives of IOCL are:

To serve the national interest in oil and related sectors in accordance and in consistentwith Government policies.

To ensure maintenance of continuous and smooth supplies of petroleum products by

way of crude oil refining, transportation and marketing activities and to provide

appropriate to consumers to conserve and use petroleum products efficiently.

To enhance the countrys self sufficiency in oil refining and build expertise in laying of

crude oil and petroleum products pipelines.

To further enhance marketing infrastructure and reseller network for providing assured

service to customers throughout the country.

To create a strong research and development base in refinery processes, productformulations, pipeline transportation and alternative fuels with a view to

minimizing/eliminating imports and to have next generation products.

To optimize utilization of refining capacity and maximize distillate yield and gross

refining margin.

To maximize utilization of existing facilities for improving efficiency and increasing

productivity.

To minimize fuel consumption and hydrocarbons loss in refineries and stock loss in

marketing operations to effect in energy consumption.

To earn a reasonable rate of return on environment. To avail of all viable opportunities, both national and global, arising out of the

government of Indias policy of liberalization and reforms.

To achieve higher growth through mergers, acquisitions, integration and diversification

by harnessing new business in oil exploration and production, petrochemicals, natural

gas and downstream opportunities overseas.


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To inculcate strong core values among the employees and continuously update skill

sets for full exploitation of new business opportunities.

To develop operational synergies with subsidiaries and joint ventures and continuously

engage across the hydrocarbon value chain for benefit of society at large.

A SWOT analysis in IOCL:

A swot analysis is a tool to provide a general or detailed snapshot of a companys health.

In any business it is imperative that the business be its own worst critic. A SWOT analysis

force s and objective of a Companys position vis--vis its competitors and the market place.

Simultaneously, an effective swot analysis will help in determine in which areas a company is

succeeding, allowing it to allocate resources in such a way as to maintain any dominant

positions it may have.

Areas of strength:

Extensive access to rural market.

Extensive marketing channels.

Proper quality- implementation of quality concepts like Six Sigma,etc.

Nearness to the market.

Largest pipeline network.

Large variance of products & services.

Its growing market share.

World class Research and Development centre.

Areas of weakness:

Social obligation.

Government intervention.

Dependence on exploration companies for crude oil.

High cost of raw materials.

No control over the fluctuation in the international market

Areas of opportunities:

As IOCL has entered into new markets like Sri Lanka and Mauritius, it can continue to

spread its offshore marketing ventures to tap new markets and explore business

opportunities.

Since IOCL is venturing into business avenues like petrochemicals and power generation,

it has entered into a new business arena where It can thrive to be the market leader as it

has already established as one in the refining sector.


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Areas of threats:

Competition from domestic players as well as established MNCs.

Private companies provide stiff competition.

Stiff competition from national and international players and volatility of oil prices

continues to put pressure on the refining and marketing margins.

AN OVERVIEW OF DIGBOI IOCL:

Digboi Refinery, in Upper Assam, is Indias oldest refinery and was commissioned in 1901.

Originally a part of Assam Oil Company, it became part of Indian Oil in 1981. Modernization

project of this refinery has been completed and the refinery now has a capacity of 0.65 MMTPA.

Digboi refinery is the oldest of all refineries in India. In 1901, Digboi refinery was constructed

with a capacity of 5oo barrels per day. Digboi refinery has the highest GRM of: 15.04 $/bbl. The

services of Digboi refinery are Refinery and petrochemical, Fuel marketing, Research and

Development, Pipeline transportation. The products of the refinery are Xtra mile super diesel,

Indane, Xtra premium, Indian oil auto gas, Sulphur, LDO, Bitumen, Propel, LAB, MTO, LSHS.

Digboi refinery has been awarded with second Prize in All India PR Awards-2012.

THE DEPARTMENTS OF THE DIGBOI REFINERY

1. Human Resource Department

2. Information System Department

3. Materials Department

4.

Finance Department

5. Power and Utility Department

6. Fire and Safety Department

7. Production Department

8. Project Department

9. Technical Services Department

10.Vigilance Department

11.Medical Department

12.Instrumentation Department

13.Maintenance Department

14.Management Services Department

15.Training Department

16.Internal Audit Department

17.Hindi Department

18.Engineering Services Department

19.Contract Cell Department


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HUMAN RESOURCE DEPARTMENT:

This department looks after the goal setting of the officers, their rotation and career path. This

department also finalizes individual goal and review of goal for each year.

INFORMATION SYSTEM DEPARTMENT:

This department serves the information regarding any king of services. It records the data of

labor, material purchasing, salary generation data, etc.

MATERIALS DEPARTMENT:

This department is responsible for purchase and supply of various raw materials, chemicals,

spare parts and consumables items in various operations and activities of the refinery. It

maintains and controls inventories of various items and takes procurement action based on

consumption, pattern and spot requirement of the different consumers.

FINANCE DEPARTMENT:

Its functions are to allocate funds and provide necessary information regarding financial matter

of the various units in the corporation.

POWER AND UTILITY DEPARTMENT:

The refinery is dependent upon captive power plant. This department not only ensures

uninterrupted supply of power and steam but also carry out necessary maintenance of electrical

equipment and accessories.

FIRE AND SAFETY DEPARTMENT:

The main functions of a refinery are to store and purify and distil the inflammable liquids from

crude. Therefore they may set to fire due to some reasons. So this department ensures that all

the departments of the refinery are free from fire.

PRODUCTION DEPARTMENT:

This department takes care of the total operation of the refinery. It is the process starting from

the receipt of crude oil, proceedings in various units, and finally dispatching the final products in

various modes. The department also takes care of the necessary fire and safety requirements.

PROJECTS DEPARTMENT:

This department helps in the preparation of projects of various activities of the refinery. It

analyses the problems of the organization and specifies which projects would be implemented

in suitable order.


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TECHNICAL SERVICES DEPARTMENT:

This provides the necessary support to the operating groups. They monitor the various

parameters of the plant operation, conduct test, run carry out troubleshooting and keep track of

overall performance of the refinery.

VIGILANCE DEPARTMENT:

This department provides the necessary supports to inspect all the dealing of the transactions,

employee working efficiency, etc.

MEDICAL DEPARTMENT:

This department is responsible in case of welfare of the refinery employees. Moreover, it

facilitates community development works, like free medical service to general people, etc.

INSTRUMENTATION DEPARTMENT:

This department is responsible any kind of utilization of instruments, i.e. technical parts the

DCU, HDU, etc. moreover it handles the electrical components.

MAINTAINANCE DEPARTMENT:

All the equipments, vessels, tanks, pumps and compressors require periodical maintenance. This

group takes scare of maintenance not only to attain failure but also to carry out the preventive

maintenance so that failure does not occur again. This department also looks after the minor

modification with respect to electrical items.

MANAGEMENT SERVICES DEPARTMENT:

The main function of the department includes review, plan and forecast of the manpower

requirements. It studies for the improvements of quality of work life of the employees within

the refinery.

TRAINING DEPARTMENT:

This department is responsible for the training of the employees. It provides and evaluates the

skill or efficiency of the employees.

INTERNAL AUDIT DEPARTMENT:

This department is responsible for the record keeping of the purchasing, the employee wages,

expenditure of the departmental instruments buying or selling, etc.


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HINDI DEPARTMENT:

This department is responsible for the use and implementation of Hindi in refinery.

ENGINEERING SERVICES DEPARTMENT:

It helps the Digboi refinery in construction and electrical purposes. This department also keepseye at the civil section of the refinery. These civil services are like building construction, road

construction, preparation of the drainage system, etc.

CONTRACT CELL:

This department is responsible for lining up, handling and maintaining al the contracts of the

refinery like the civil contracts, mechanical contracts, etc.

CORPORATE COMMUNICATION:

This department helps to provide information to different departments, environment and

activities within the refinery. This department is spokesman of the refinery to outsides agencies

such as press and other mass media. They are responsible in maintenance of the refinery with

the society as a whole.

TPM is practiced at Digboi refinery.TPM means Total Productivity

Maintenance. TPM helps in the followings:

Reducing all loses

Achieving Zero failure

Consistency in quality

Making job easier to operate

Bringing about a cultural change

Improving morale of employees

Increasing knowledge & skill

Creating ownership attitude

Reducing operating cost

Reducing equipment failure

Achieving Zero accidents


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Chapter III:

Objectives of the study

1.1 PRIMARY OBJECTIVE:

To understand the Performance Appraisal System practiced at Indian Oil Corporate

Limited (IOCL), Digboi refinery.

1.2 SECONDARY OBJECTIVE:

To know the employees awareness & level of satisfaction about the Performance

Appraisal practiced in the organization.

To identify the factors inducing to increase the performance of an employee.

To know the factors necessary for appraising the employees.

To provide suggestions to the management in improving Performance Appraisal System.


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Chapter IV:

Performance Appraisal Management System at IOCL(A.O.D), Digboi

Refinery:

1.1 Objectives of Performance Appraisal Management System:

The performance appraisal management system aims to encourage the following:

Creation of high performance orientation at Indian Oil.

Stronger alignment of individual performance with organizational goals.

Higher degree of transparency, uniformity and process efficiency.

Performance ownership at the employee level

1.2 Coverage:

All Officers working in Grades A-I.

1.3 Some terms used at IOCL regarding Performance appraisal management

system:

Alignment (of objectives & results) Exists when individual and group objectives &

results contribute directly to achievement of

the organization results.

Appraise Every officer whose performance is assessed

under PMS.

Appraiser Every officer who assesses the performance of

one or more appraises that report to him/her.

Cascade

The process of sequentially breaking down

organizational objectives & targets into those

of various levels of the organization. Theindividual KRAs would also include KRAs over

& above these cascaded ones such as

applicable to divisions, units, functions, areas,

and individuals.


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Competency

Skills and abilities described in terms of

behaviors that are coachable, observable,

measurable & critical to individual

performance.

E- enabled Delivered through software

Final performance rating The rating given to an appraise after counter

signature.

Internal change agent

Pre- selected, she/he is the first point of

contract for any queries on PMS process at

his/her location.

Key Result Area

Critical achievement required to deliver Indian

Oil desire business results.Typically are outcomes that directly

contribute to Indian oils MOU, strategic

objection and/or operational goals.

Usually measurable or verifiable.

Performance diary A tool of the appraise to record significant

events or aspects of performance which may

be used for performance discussions.

Performance plan A descriptive of KRAs and KPIs and their

targets expected to accomplish during the

performance period.

Proficiency level The level at which set of behaviors is required

to demonstrate in a particular role.

PMS The unique system of managing performance

at Indian Oil

PMS facilitator and administrator Responsible for centrally administrating the e-

enabled PMS software

PMS tools Tools developed within PMS to facilitate

effective usage: roles stretch, rating scales.

Reviewer Typically the appraisers appraiser, who is

responsible for reviewing the entireperformance.


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1.4 Key roles in Performance appraisal management at IOCL:

1.5 Features of Performance appraisal management system:

The following are system features of Performance appraisal management system, which have

been detailed in subsequent sections of this document:

Performance Period Performance Planning

Mid-year Review

Final Appraisal, Review & Feedback


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Performance per iod:

PMS follows an April-March annual cycle aligned to the financial year. The cycle

Consists of three phases, namely, Performance Planning, Mid-Year Review, and Final

Performance Review. The critical calendar months and the sequence of events for these phases

are represented in the following figure:

M id- Year Review:

The objective of a mid-year review is to ensure that performance management is not limited to

once a year report card but has a mid- year process for reviewing and tracking achievements.

It also reduces the scope for surprises at the end of the year and ensures that the appraise is

always aware of expectations.

Appraise will

complete self-

appraisal on KPIs

against targets

set for first 6

months

Appraise

will submit

self

appraisal to

appraiser

Appraiser

will discuss

the review

with

appraise

Mid- year

appraisal

completed


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Mid-Year Review of performance for each individual is conducted during the month of October.

This is initiated as a self-appraisal by the Appraise and a review by the Appraiser. The Mid-Year

Review does not result in a performance score, but is a half-yearly opportunity to record

comments on performance issues. The Mid-year review is also an opportunity where under

extraneous circumstances changes in performance plans may be incorporated.

F inal Appraisal, Review & Feedback Objectives:

Final Appraisal, Review & Feedback is an assessment phase when Appraisers assess

level of achievement of KRAs, targets and routine responsibilities and demonstration of

competencies for each Appraise. The final performance review and feedback is undertaken in

the month of April-May. Ratings and feedback will be given based on what the employee has

delivered vis--vis the set and agreed performance plan. During the final appraisal, review and

feedback phase, first the Appraise undertakes a self-appraisal and gives a rating on all the

performance parameters i.e. KRAs. The Appraiser then does the assessment & rating on KRAs,

Competencies, and Value & Potential. He/ she also review the actions taken towardsachievement of the Appraisess development plan. The Reviewer then reviews the ratings on

KRAs, Competencies, and Value & Potential. At any stage the Appraiser and/or Reviewer can call

for a discussion with the Appraise. Feedback and guidance to the Appraise should be provided

on a continuous basis throughout the year. PMS provides the Appraise and the Appraiser

opportunity to input the key achievements as and when they happen through an on-line

personal diary. This will also help capture all performance-related information and keep

continuous focus on performance.

1.6 PERFORMANCE MANAGEMENT PROCESS:

The graphical representation of the Performance appraisal management

system at IOCL, Digboi refinery is as follows:


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1.7 Methods used at IOCL to accomplished Performance appraisal management

system:

1. E-PMS

2. 360 degree feedback appraisal

I. E-PMS:

E-PMS is enabled Online Performance Management System. The E-PMS help

to manage performance in the organization. All unique roles are fed into the

system and all officers are mapped to corresponding roles.

The E-PMS system is used for:

Planning performance

Monitoring and Appraising Performance

Differential Reward linked to Performance


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Performance Planning in E -PMS :

Every employee has a set of Mandatory KRAs depending upon his Role profile.

Every employee and his Appraiser will select KRAs and KPIs for the performance year

based on the role profile. Provision exists to define up to 6 special KRAs with KPIs toaccommodate specific situations. Maximum 12 KRAs are allowed.

They will then assign weightages and set targets for each KPI based on the

Units/Departments targets.

Appraiser will assign Stretch to Targets depending on their degree of difficulty.

The selection of KPIs, weightages, targets and their stretch will be reviewed and

approved by the Reviewer to complete Planning Phase

Provision exists to edit the performance plan in case of significant changes in businessplans or roles (transfers, new responsibilities etc.) with the approval of Appraiser and

reviewer.

KEY ROLE AREA:

Performance in E-PMS is based upon Key role area (KRAs) Competencies, Values and

Potential. The achievement against each of these will together constitute the Appraises

performance.

KRAs are identified areas of performance that support the organization's goals that are to

be accomplished during the year. Each KRA is accompanied by one or more KPIs. Some of theKRAs from each unique role are marked mandatory based on organizational alignment to ensure

consistency in assessment of Appraisees performance.

Competencies are knowledge, skills and abilities described in behavioral terms that are

coachable, observable, measurable, and critical to successful performance.

Values are statements that express Indian Oils ethical commitments and guiding

principles which are timeless and will stand the test of time, market forces and management

practices, an on upholding of which individuals are assessed.

Potential includes the critical attributes which do not get covered in competencies and

reflect an individuals capacity to shoulder higher responsibility.


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The relative weightings of these 4 sections-KRAs, Competencies, Values and Potential,

have been pre-decided.

Key Result Areas (KRAs) are Critical outcomes towards which effort is directed to

support achievement of desired business results . Each KRA in a role profile would fall in one of

the following:

(a) Operational/ Direct or Critical Outputs: KRAs pertaining to functional /

operational activities (in terms of efficiency) as performed in the organization.

(b) Financial: KRAs pertaining to direct impact on top line (revenue) or bottom line (cost) at a

decision making level.

(c) Strategy and Growth/ Forward Planning: KRAs pertaining to strategic direction setting or

establishing differentiation with respect to manufacturing, selling & marketing, product &

process development and delivery.

(d) People/Team Management: KRAs pertaining to people development, training, performance

management and employee satisfaction activities for all Appraisers with direct reports.

(e) Boundary Management/ Coordination and Liaison: KRAs pertaining to liaising/ coordinatingwith Governmental (local, state, central), Administrative,

Regulatory, Statutory bodies and vendors / customers (external & internal).

Grade KRA : C : V : P

A/B/C 60 : 15 : 10 : 15

D/E 55 : 20 : 10 : 15F/G 50 : 20 : 15 : 15

H/I 45 : 20 : 15 : 20


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Three dimensions of KRA:

Conclusion:

E-PMS is a vast and old method that is used to evaluate the performance

appraisal of officers. In E-PMS the appraiser is in direct contact with the appraise.

Therefore the appraiser ensure that adequate time is spent in the performance planning

phase and provide prompt and timely feedback on performance. The appraiser tries and

resolves all issues at his/her level towards a win-win solution. In E-PMS reviewer is the

final authority in the most crucial phase of performance appraisal management- planning

phase. The role of a reviewer assumes greater significance. Reviewer is required to

resolve disputes that may be escalated to employees; however he/she may encourage

appraise and appraiser to resolve these among themselves.


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ii. 360 degree feedback appraisal:

360 degree feedback appraisal, also known as multi-rater feedback, multi source

feedback, or multi source assessment, is feedback that comes from members of an employee's

immediate work circle. It is a well known practice that completes the evaluation of performance

with effective results. 360 degree feedback is presently introduced at IOCL and the organization

is receiving effective results out of it.

Defini tion of 360 degree feedback appraisal:

An appraisal made by top management, immediate superior, peers, subordinates, self

and customers is called 360 Degree Appraisal. Here, the performance of the employee or

manager is evaluated by six parties, including himself/herself. So, he/she gets a feedback of his

/her performance from everyone around him/her. This method is very reliable because

evaluation is done by many different parties. These parties are in the best position to evaluate

the employee or manager because they are continuously interacting and working with him. This

method is mostly used to evaluate the performance of the employees

However, it is also used to evaluate other qualities such as talents, behavior, values,

ethical standards, tempers, loyalty, etc.

Implementation of 360 degree feedback appraisal at IOCL, Digboi refi nery:

360 degree feedback appraisal was introduced at IOCL on 25th

October, 2012 at corporate

office. Corporate HR implement & monitor the process for corporate office based officers with

help from divisional HR. the divisions may implement the mechanisms for officers from theirrespective divisions in grade D to H. the feedback will be used for promotion related.

The process is implemented offline, due to limited time available to design & implement

on-line system, in the year 2012. The process took place through printed questionnaire that are

to the respondent.

The questionnaire has been developed keeping in view the Leadership competency

framework developed for the corporation by M/S KPMG. The model was developed & validated

in consultation with divisional Directors, HR Heads & other senior officials of the corporation.

For an individual officer (appraise), the questionnaire is to be circulated to 8 officers (ideal

respondent no. is 10 to 12), however owing to paper format questionnaire & paucity of time,

the limited no. of respondent is set as 8. For each appraise, the questionnaire will comprise of 9

individual formats. These have been coded as SELF & R1 to R8.


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The mechanism will work as follows:-

The questionnaire coded as SELF will be used by the appraise for self appraisal. The

appraise is to be advised to retain a copy of SELF appraisal before submitting to divisional

HR.

Out of rest eight (8), four (4) respondents will be selected by Divisional HR & the appraise

will select the remaining four (4) respondents.

Divisional HR will select four (4) respondents applying the following criteria:-

Respondent code Respondent

SELF For the officer (appraise)

R1

Controlling senior

R2 One senor with whom the officer has

been/ is working for not less than 3 years

in the immediate recent years.

R3 One peer in the same grade, or maximum.

One grade above/below, with whom the

officer has been/is working for not less

than three years in three immediate recent

period.

R4 One subordinate with whom the officer

has been/is working for not less than three

years in the immediate recent period.

d) The officer (appraise) will select the four (4) respondents in the following manner:

Respondent code Respondent

R5 One senior with whom the officer has been/is

working for not less than 3 years in the

immediate recent years.

R6 One peer or maximum one grade

above/below, with which the officer has

been/is working for not less than 3 years in

the immediate recent period.R7 One sub-ordinate with whom the officer has

been/is working for not less than immediate

3 years in the immediate recent period.

R8 1 colleague(in the same grade) with whom

the officer has been/is working for not less

than 3 years in the immediate recent period.


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e) HR will send questionnaire to the selected respondent i.e R1 to R4 in the sealed cover. HR will

inform the names of the respondents R1 to R4 to the officer (appraiser).

f) The officer (appraise) will nominate four(4) other respondents i.e R5 to R8, keeping in view

the above mentioned criteria, and informed the same to Divisional HR. R5 to R8 will essentially

be different from R1 to R4. HR will send the questionnaire to the respondents in sealed cover.

g) HR will co-ordinate with all the other respondents, communicate a time line for response and

collect the filled-in questionnaire back from the respondents after the time-line.

Conclusion:

The 360 degree feedback appraisal is implemented with great support at IOCL, Digboi

refinery as the evaluation is done by six parties such as: Top management, immediate superior,

peers, sub-ordinates, self and customers too. Confidentiality is the key to success of 360 degree

feedback appraisal. But owing to the pen and paper format, it may not be possible to maintainthe confidentiality. Hence the Divisional HR ensure maximum confidentiality till it become

electronic. At IOCL, Digboi refinery in order to ensure confidentiality and authenticity of the

questionnaire a hologrammed sticker has been affixed on the entire questionnaires.


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Chapter v:

Research methodology

Research Methodology is a way to systematically solve the research problem.

1.1RESEARCH MEANING AND DEFINITION:

Research is an art of scientific investigation. The advanced learners dictionaries of current

English lay are down the meaning of research as, a careful investigation (or) inquiry

especially through search for new facts in any branch of knowledge. Redmen and Mary

define research as a systematic effort to gain knowledge...

1.2 RESEARCH PLAN:

The research plan is done with the primary objective of finding out the performance appraisal

management at IOCL, Digboi Refinery. Thus a detailed study of the performance appraisal

system at IOCL and its impact is very important to get the proper insights, which is vital for the

development of the research instrument which is to be undertaken during the study. All the

relevant information has been collected through questionnaire.

Further suitable rating scales have been developed to measure the view as well as

outlook of employees towards the performance system at Digboi refinery. The ratings are later

analyzed to get a clear picture of the views of the employees of IOCL, Digboi towards theperformance appraisal system and their satisfaction level, and suggest ways and means towards

the performance rating system for their greater participation and involvement towards the

organizations goals and objectives as well as individual goals.

1.3 AREA DEFINED FOR THE STUDY:

The area for the study was the different departments of the Digboi refinery.

1.4 NATURE OF STUDY:

The study is exploratory in nature because the research largely stresses on the exploration of

ideas and insights, and enough flexibility to embrace different aspects of human behavior.


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1.5 SOURCES OF DATA:

Both primary and secondary data has been in the research process.

The primary data has been collected from the respondents through questionnaire

personally. The secondary data has been obtained from the organizations literatures, online

search and journals.

1.6 SAMPLING DESIGN:

Population : 271 Members

Sampling Unit : Employees (Officers)

Sample Size : 50 nos.

Sampling Procedure : Simple Random sampling (probability sampling)

1.7RESEARCH INSTRUMENT:

Questionnaire was used to conduct the survey among 150 employees which

includes open-ended and closed ended questions.

Openended questions:

A question which requires the respondent to answer it in his own words.

Closed ended question: Likert scale: A scale by the likert method in which subjects are given a number of

statements and asked to indicate their agreement or disagreement with those

statements. Dichotomous question: Here the respondents are under the obligation to answer

between two clear cut alternatives like YES or NO.


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1.8 ANALYSIS TECHNIQUE

For the analysis of data and its interpretations, percentage method tool of research was

used.

Percentage Method:

It refers to special kind of ratio. It is used to making comparisons between two or

more series of data. Percentages are used to describe relationships.

Percentage = No. Of Respondents X 100

Total No. Of Respondents


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CHAPTER VI

DATA ANALYSIS AND INTERPRETATION

TABLE 6.1

Age of the Respondents

Interpretation:

58% of the respondents belong to the age of 45-55 years

16% of the respondents belong to the age of greater than 55 years

CHART 6.1

Opinion No of respondents Percentage (%)

25-35 7 14.0

35-45 6 12.0

45-55 29 58.0

Greater than 55 8 16.0

Total 50 100.0

25-35 35-45 45-55 >55


0

5

10

15

20

25

30



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TABLE 6.2

Gender of the respondent

Interpretation:

From the above table it is interpret that 74% of the respondents are male and 26% of the

respondents are female.

CHART 6.2


MALE 37 74.0

FEMALE 13 26.0

Total 50 100.0

MALE FEMALE

Gender

0

10

20

30

40

Gender


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Table 6.3

Experience of the respondents


LESS THAN 10 5 10.0

10-20 15 30.0

20-30 21 42.0

GREATER THAN 30 9 18.0

Total 50 100.0

Interpretation:

42% of the respondents belong to the experience of 20-30 years.

30% of the respondents belong to the experience of 10-20 years.

18% of the respondents belong to the experience of greater than 30 years.

CHART 6.3

< 10 10-20 20-30 >30

Experience

0

5

10

15

20

25

Experience


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Questions:

1. How do you describe your job?

a) Challenging [ ] b) Interesting [ ] c) Normal [ ]

TABLE 6.4

Respondent describing their Present Job

Interpretation:

From the above table shows that 18% of the respondents have said

that their present job is challenging and 74% of the respondents have said that

their present job is interesting and 8% of the respondents have said that their

present job is normal.


Challenging 9 18.0

Interesting 37 74.0

Normal 4 8.0

Total 50 100.0


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CHART 6.4

2. Are you aware of the performance appraisal system practiced in your

organization?

a) Yes [ ] b) No[ ]

Table: 6.5

Aware of Performance Appraisal


Yes 50 100.0

Interpretation: From the above table it is found that 100%of the employees are having

awareness about the performance appraisal system at IOCL, Digboi refinery

Challenging Interesting Normal

Describe Present Job

0

10

20

30

40


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CHART 6.5

3. What type of performance appraisal system is followed in your organization?

a) Open-system [ ] b) Confidential system [ ]

Table: 6.6

Type of Performance Appraisal


Open System 1 2.0

confidential system 48 96.0

Total 50 100.0

Yes

Aware of Performanceappraisal

0

10

20

30

40

50

Aware of Performance appraisal


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Interpretation:

From the table it is found that 2% of officers are followed with open-system

and for 96% of officers confidential system is followed.CHART 6.6

Open System confidential

systemType of Performance Apprasial

0

10

20

30

40

50

Type of Performance Apprasial


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4. How frequently the performance appraisal is carried out in your organization?

a) Quarterly [ ] b) Half-yearly [ ] c) Annually [ ] d) More than a year [ ]

Table: 6.7


Quarterly 0 0.0

Half-yearly 0 0.0

Annually 50 100.0

More than one year 0 0.0

Total 50 100.0

Interpretation:

From the above table, it has interpreted that the performance appraisal system is carried

out annually. 100% of officers agree to it.

Quarterly alf-yearly Annually

Frequency of Performance Apprasial

0

10

20

30

40

50

Frequency of Performance Apprasial

>1 year


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5. How do you rate the performance appraisal system existing in your organization?

a)satisfied [ ] b) highly satisfied [ ] c) dissatisfied[ ] d) highly dissatisfied [ ]

e) Poor [ ]

Table: 6.8


Satisfied 40 80.0

Highly satisfied 2 4.0

Dissatisfied 5 10.0

Highly dissatisfied 2 4.0

Poor 1 2.0

Total 50 100.0

Interpretation:

From the above it can be interpreted that 80% of the officers are satisfied with theperformance appraisal system.


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Chart 6.8

6. Do you think the following factors are necessary for appraising the employees?

Agreed

Partially

agreed Dis-agreed

a. Commitment of work [ ] [ ] [ ]

b. Discipline [ ] [ ] [ ]

c. Attendance [ ] [ ] [ ]

d. Job Knowledge [ ] [ ] [ ]

e. Relation with superior and subordinates [ ] [ ] [ ]

f. Plan of Work [ ] [ ] [ ]

g. Decision Making [ ] [ ] [ ]

h. Leadership qualities [ ] [ ] [ ]

i. Communication skills [ ] [ ] [ ]

Satisfied Highly satisfied Dissatisfied

Rating of Performance Apprasial

0

10

20

30

40

50

Highly dissatisfied Poor


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COMPARASION OF FACTORS APPRAISING THE EMPLOYEES

TABLE 6.9

X = No of respondents

Y = Percentage (%)

Interpretation:

From the above table it is found that, majority of the officers are

agreed to the factors of inducing to increase their performance, mainly to the

factors of Discipline 96%, Job Knowledge 96%, and Decision Making 96%.

Opinion

Commit

ment of

Work Discipline

Job

Knowle

dge

Attendan

ce

Relation

with

Superior

and

Subordina

tes

Plan of

Work

Decision

Making

Leadershi

p Qualities

Commu

nication

Skills

Agreed

X Y

X Y X Y X Y X Y X Y X Y X Y X Y

43 86 48 96 48 96 44 88 42 84 43 86 48 96 42 842

652

Partially

agreed6 12 2 4 2 4 6 12 8 16 7 14 2 4 8 16

2

448

Disagreed 1 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0


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CHART 6.9

7. Which method of rating performance appraisal is better?

a) E- PMS [ ] b) 360 degree feedback appraisal [ ]

Table 6.10


E-PMS 42 84.0

360 degree feedback

appraisal8 16.0

Total 50 100.0

Agreed

Partially agreed

Disagreed

Rows

10.00 20.00 30.00 40.00

Values

Commitment of Work Count

Discipline Count

Job Knowledge Count

Attendance Count

Relation with Superior and Subordinates Count

Plan of Work Count

Decision Making Count

Leadership Qualities Count

Communication Skills Count

Factors


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Interpretation:

From the above table it is interpreted that 84% of officers are satisfied with E-PMS

system, and 16% of them are satisfied with the 360 degree appraisal system.

Chart 6.10:

8. a) Does the performance appraisal system facilitate to increase your self-

development?

a) Yes [ ] b) No [ ]

b) If yes, at what level the performance system is helpful your self

development?

a) Very high [ ] b) High [ ] c) Moderate [ ]

-PMS 360 degree

0

10

20

30

40

50


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TABLE 6.11

Performance Appraisal - Self Development


Yes

50 100.0

Interpretation:

From the above table shows that 100% of the respondents have facilitated to increase self-

development.

TABLE 6.11

Level of Self Development


Very High 1 2.0

High 43 86.0

Moderate 6 12.0

Total 50 100.0


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Chart 6.11

9. Are the process of Performance Appraisal is free from bias and Prejudices?

a) Strongly Agree [ ] b) Agree [ ] c) Disagree [ ] d) Strongly Disagree [ ]

Table 6.12


Strongly agree 1 2.0

Agree 43 86.0

Disagree 3 6.0

Strongly dissagree 3 6.0

Total 50 100.0

Interpretation:

From the above table it is found that 86% of the respondents agree, 6% of the respondents

disagree and 6% of the respondents strongly disagree.

Very High High Moderate


0

10

20

30

40

50



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CHART 6.12

10. Does your immediate supervisor give you feed back that helps you to improve

performance?

a) Agree [ ] b) Strongly Agree [ ] c) Neutral [ ] d) Disagree [ ]

Table: 6.13


agree 40 80.0

Strongly Agree 5 10.0

neutral 2 4.0

disagree 3 6.0

Total 50 100.0

Strongly Agree Agree Disagree0

10

20

30

40

50

Strongly

disagree


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Interpretation:

From the above table it has been interpreted that 80% of the officers get

their performance feedback from their immediate supervisor and 10% of the

officers strongly agree to it.

Chart 6.13

11. a) Are the employees, undertake any programmer to improve their

performance? a) Yes [ ] b) No [ ]

b) If yes, what kind of programmer to improve the performance have

undertaken by the employees themselves?

a) Quality circle [ ] b) Group discussion [ ] c) Course undertaken [ ] d) Seminar Conference [ ]

TABLE 6.14 (a)

Programmer to improve the performance


Yes 50 100.0

Agree Strongly agree Neutral


0

10

20

30

40

50

Feedback from immediate supervisor

Disagree


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Interpretation:

From the above table shows that 100% of the respondents have facilitated to know the

employee performance programme.

Chart 6.14(a):

Table 6.14(b)


Quality circle 0 00.0

Group discussion 25 50.0

Course undertaken 25 50.0

Seminar conference 0 0.0

Total 50 100.0

Yes

Programmer to improve performance

0

10

20

30

40

50

Programmer to improve performance


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Interpretation:

From the above table shows that 50% of the respondents are undertaking group

discussion, 50%of the respondents are undertaking course undertaken.

CHART 6.14 (b):

12. Are you given feedback, once the appraisal is completed?

a) Yes [ ] b) No [ ]

Table 6.15:


Yes 46 92.0

No 4 8.0

Total 50 100.0

Group Discussion Course UndertakenKind of Programme

0

5

10

15

20

25

Kind of Programme


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Interpretation:

From the above table it has been interpreted that 92% of the respondents agree that once

appraisal is completed, they are given feedback.

Chart 6.15

13. In what way this feedback helps you to perform effectively?a) Helps in knowing ones own potential [ ]

b) Helps to get proper guidance from superior [ ]

c) Increases productivity [ ]

d) Sense of recognition [ ]

e) Others -----------------------------------------------------

Yes

Feedback once the appraisal is completed

0

10

20

30

40

50

Feedback once the appraisal is completed

No


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Table 6.16:


Helps in knowing ones

own potential41 82.0

Helps to get proper

guidance from

superior

0 00.0

Increases productivity 0 00.0

Sense of recognition 9 18.0

Total 50 100.0

Interpretation:

From the above table, it has been interpreted that 82% of the officer agree that the feedback

helps them in knowing their owns potential and 18% agree to sense of recognition.

Chart 6.16:

Helps in Knowing One's Own PotentialSense of Recognition

Feedback Effectiveness

0

10

20

30

40

50

Feedback Effectiveness


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14. At low performance level, how does your organization improve the performance level of the

employee?

a) By advice [ ] b) By training [ ] c) By punishment [ ] d) By rules & regulation [ ]

Table 6.17


By advice 0 00.0

By training 50 100.0

By punishment 0 00.0

By rules & regulation 0 00.0

Total 50 100.0

Interpretation:

From the above table it has been interpreted that 100% of the officers agree that at

low level of performance the respondents are given proper training.

Chart 6.17:

By training

Improve performance

0

10

20

30

40

50

Improve performance


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CHAPTER VII

FINDINGS OF THE STUDY

Most of the respondents belong to the age of 45-55 years, majority of the respondents

are male, and most of the respondents are having experience of 15-20 years.

Majority of the respondents have said their present job is interesting. 100% of

employees aware about the performance appraisal system carried out in the organization,

96% of employees follow confidential system. Most of the respondents opinion was fair,

and 80% of the respondents are satisfied towards performance appraisal system.

Majority of the respondents are having additional job satisfaction towards

performance appraisal. The performance appraisal period is 90% towards the opinion of the

respondents. Most of the employees induce the factors of decision-making. All the employees

are accepting that, there is increase in self-development. All the employees are given feedback

and training.

The opinion of the respondents regarding level of additional job satisfaction and

satisfaction of performance appraisal system are positively correlated.

The respondents gave different opinion regarding the two methods i.e E-PMS and 360 degree

feedback appraisal. Some respondents except E-PMS as the best method, as it is the better way

to judge the performance of an appraise. Self assessment can be done at E-PMS. It is found

that E-PMS is more towards officers job skills along with the competencies. This is more aligned

towards an organizational core values. Throughout the study, it is found that E-PMS is more

transparent and it is the method by which the appraise can set his/her goals and rate his/her

performance in achieving them.

The other opinion of officers for 360 degree feedback appraisal is vary. It is found from

the study that 360 degree feedback appraisal has the aspect of uniformity and as confidentiality

is maintained, the method is free from any personnel aspect. It is also found from the study that


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360 degree feedback appraisal give an overview of an employee with unbiased opinions of the

people involved.

The opinion of the respondents regarding the factors for appraising the employees they

rank Discipline, Job Knowledge, Decision Making as first rank followed with Attendance and last

as Communication Skills.


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CHAPTER VIII

SUGGESTIONS AND RECOMMENDATIONS:

From the study it was found that the employees lacked in communication skills, so

the organization can give special training on soft skills to the employees.

Findings show that only confidential type of performance appraisal system is

followed widely. Open system of performance appraisal can also be followed.

Only two type of training programme like group discussion and training related to their

specific job is given. Knowledge about ethics and interpersonal relationship should be

introduced.

Senior management should continually review the appraisal conducted, which shall be

seen as positive support to the system by the appraiser as well as appraises, and their interest

will be maintained.

Indian Oil is an organization which believes in team work. However the E-PMS appraisal

is an individualistic appraisal which does not cater too much about team work. This area where

the team work is concerned- needs to be incorporated. From the study it is also suggested that

the present E-PMS system should not be person specific and should be above individual

influences.

Some officers suggested 36o degree appraisal as the best appraisal as a person should be

appraised both as a team worker by his/her senior and as a leader by his/her juniors. This will

show his/her nature in totality.


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CHAPTER IX

CONCLUSIONS

This study helps to understand the performance appraisal system practiced in

Indian Oil Corporation Limited, Digboi refinery (A.O.D). Majority of the officers are benefited by

this system and the procedure followed and they are enjoying the various benefits from this

system such as knowing ones own potential, receiving mental encouragement regarding their

job portfolio, sense of recognition in the organization etc, which helps them to achieve their

own goals as well as organizational goals. Performance Appraisal System helps is employees

career growth, it support them to take their consideration to the management and to get more

benefits and also for their more effective performance.

In IOCL, Digboi refinery performance appraisal is used for multiple uses like yearly

increment, salary review, potential assessment and promotion or demotion options etc.


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CHAPTER X

LIMITATIONS OF THE STUDY

1. The employees were a bit hesitant to reveal the negative aspects in spite of the

confidence given to them that study is meant for academic purpose and the personal

details will maintained in total confidence.

2. Due to shortage of time the sample size is limited to only 50.

3. The information provided by the respondents is spontaneous and they may not be

consistent.

4. There was a dearth of free time in the hand of employees. As such carrying out a surveyand getting the questionnaires filled correctly on time was a real hard desk.

5. As the organization is always in operational state as per its busy schedule, so the

employees get very less time to express their views.

6. The feedback given by the various employees is based on their experiences and

perceptions and may suffer from some biasness.

7. Most of the respondents refused to divulge details regarding their designation and this

created a problem as the data could not be analyzed with respect to this particular

variable.

8. The study faced heavy strike from employees as it was in news that Government ordered

IOCL, Digboi refinery to close down the refinery due to lack of productivity.


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CHAPTER XI

SCOPE FOR FURTHER STUDIES

The scope of the study encompasses all the members in all the

departments existing in the Organization. The study is conducted to know the

expectation of performance appraisal system among the officers. The study may

further conducted to non-officers too, as at present the organization practiced

performance appraisal system only with the officers of grade A-I.


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ANNEXURE I

Questionnaire:

Particulars of respondent

Age:

Gender:

Years of experience in the organization:

Questions (please tick)

1. How do you describe your job?

a) Challenging [ ] b) Interesting [ ] c) Normal [ ]

2. Are you aware of the performance appraisal system practiced in your organization?

a) Yes [ ] b) No[ ]

3. What type of performance appraisal system is followed in your organization?

a) Open-system [ ] b) Confidential system [ ]

4. How frequently the performance appraisal is carried out in your organization?

a) Quarterly [ ] b) Half-yearly [ ] c) Annually [ ] d) More than a year [ ]

5. How do you rate the performance appraisal system existing in your organization?

a)satisfied [ ] b) highly satisfied [ ] c) dissatisfied[ ] d) highly dissatisfied [ ]

e) Poor [ ]

6. Do you think the following factors are necessary for appraising the employees?

AgreedPartially

agreedDis-agreed

j. Commitment of work [ ] [ ] [ ]


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k. Discipline [ ] [ ] [ ]

l. Attendance [ ] [ ] [ ]

m. Job Knowledge [ ] [ ] [ ]

n. Relation with superior and subordinates [ ] [ ] [ ]

o. Plan of Work [ ] [ ] [ ]

p. Decision Making [ ] [ ] [ ]

q. Leadership qualities [ ] [ ] [ ]

r. Communication skills [ ] [ ] [ ]

7. Which method of rating performance appraisal is better?

a) E- PMS [ ] b) 360 degree feedback appraisal [ ]

(i) If E- PMS, then why?

(iii)If 360 degree feedback appraisal, then why?

..

8. a) Does the performance appraisal system facilitate to increase your self- development?

a) Yes [ ] b) No [ ]

b) If yes, at what level the performance system is helpful your self development?

a) Very high [ ] b) High [ ] c) Moderate [ ] d) Poor [ ]

9. Are the process of Performance Appraisal is free from bias and Prejudices?

a) Strongly Agree [ ] b) Agree [ ] c) Disagree [ ] d) Strongly Disagree [ ]

10. Does your immediate supervisor give you feed back that helps you to improve performance?

a) Agree [ ] b) Strongly Agree [ ] c) Neutral [ ] d) Disagree [ ]


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11. a) Are the employees, undertake any programmer to improve their performance?

a) Yes [ ] b) No [ ]

b)If yes, what kind of programmer to improve the performance have undertaken by the

employees themselves?

a) Quality circle [ ] b) Group discussion [ ]

c) Course undertaken [ ] d) Seminar Conference [ ]

12. Are you given feedback, once the appraisal is completed?

a) Yes [ ] b) No[ ]

13. In what way this feedback helps you to perform effectively?

a) Helps in knowing ones own potential [ ]

b) Helps to get proper guidance from superior [ ]

c) Increases productivity [ ]

d) Sense of recognition [ ]

e) Others ----------------------------------------------------------

14. At low performance level, how does your organization improve the performance level of the

employee?

a) By advice [ ] b) By training [ ] c) By punishment [ ] d) By rules & regulation [ ]

15. Any suggestions:


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ANNEXURE II

Bibliography:

Books:

1. IOCL HR manual

2. E-PMS manual

3. 360 degree feedback appraisal mannual

4. Human Resource Management, V.S.P Rao

5. Human Resource Management, L.M. Prasad

6. Human Resource Management, Aswathapa7. Performance Management, L.M. Prasad

8. IOCL journal

Website:

1. www.performance appraisal .com

2. www.answers.com

3. www.iocl.org
http://www.answers.com/http://www.answers.com/


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Documents

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