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Final Year BBA(H) Study Paper on

Performance appraisal system in Public Sector

Enterprise

Submitted by:

Name:Prasun Sarkar

Roll no. 15405015021

Name:Preetam Ghosh

Roll no:15405015022

Semester:6th

Session:2015-2018

College: Dinabandhu Andrews Institute Of Technology And

Management(154)

University:Maulana Abul Kalam Azad University Of Technology

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Index

Serial no. Contents Page no.

1. Introduction 4-5

2. Objective 6

3. Company Profile

a. Airport Authority of India 7-8

b. Indian Railways 9-10

4. Research Methodology 11

5. Findings 12

a. Appraisal System of Indian Railways 13-16

b. Appraisal System of Airport Authority of India 17-20

6. Conclusion 21

7. Bibliography 22-23

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Introduction

Performance appraisal system in Public Sector Enterprises.

What is Performance appraisal ?

A performance appraisal is a regular review of an employee's job performance

and overall contribution to a company. Also known as an "annual review,"

"performance review or evaluation," or "employee appraisal," a performance

appraisal evaluates an employee s skills, achievements and growth, or lack

thereof. Companies use performance appraisals to give employees big-picture

feedback on their work and to justify pay increases and bonuses, as well

as termination decisions. They can be conducted at any given time but tend to

be annual, semi-annual or quarterly.

What are the different types of Performance Appraisal?

Most performance appraisals are top-down, meaning supervisors evaluate their

staff with no input from the subject. But there are other types:

1.Self assessment: Individuals rate their job performance and behavior.

2.Peer assessment: An individual's work group rates their performance.

3.360 degree feedback assessment: Includes input from an individual, their

supervisor and their peers.

4.Negotiated appraisal: A newer trend, utilizes a mediator and attempts to

moderate the adversarial nature of performance evaluations by allowing the

subject to present first. Also focuses on what the individual is doing right before

any criticism is given. This structure tends to be good during conflicts between

subordinates and their supervisors.

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What is Public Sector Enterprise?

A state-owned enterprise in India is called a Public Sector Undertaking (PSU)

or a Public Sector Enterprise. These companies are owned by the union

government of India, or one of the many state or territorial governments, or both.

The company stock needs to be majority-owned by the government to be a PSU.

PSUs may be classified as Central Public Sector Enterprises (CPSEs), public sector

banks (PSBs) or State Level Public Enterprises (SLPEs).

Many Public Sector has been awarded Maharatna, Navratna, Miniratna-i/ii, the

awarded Enterprise gains financial autonomy for better functioning and becoming

global giants.

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Objective and Aim(s)

Our main aim or objective ,of this study paper is to have a better

understanding and view of how the appraisal system works in Public

Sector Enterprises and how the theoretical knowledge we have so far is

implemented in real life scenarios or rather in real life enterprises.

After having the whole picture of appraisal systems of different Public

Sector Enterprises in hand, we can derive inferences such as which

Enterprise has more efficient and effective appraisal system keeping

different factors of evaluation and why.

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Company Profile(s)

In this section we will have a brief-look and some quick facts over the two

companies we will be taking into as the material of research in this study paper.

A.

Airports Authority of India(AAI)

Type of Enterprise Public Sector Unit

Industry related to Aviation Sector

Foundation date 1.04.1995

Headquartered at New Delhi, India

Services or Product offered Airport Management

No. Of Employees 17,379

Ratna's awarded Mini-ratna-I

Chairman/person Dr.Guruprasad Mohapatra

Major Functions of this enterprise:

1.Design, Development, Operation and Maintenance of international and

domestic airports and civil enclaves.

2.Control and Management of the Indian airspace extending beyond the territorial

limits of the country, as accepted by ICAO.

3.Construction, Modification and Management of passenger terminals.

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4.Development and Management of cargo terminals at international and

domestic airports.

5.Provision of passenger facilities and information system at the passenger

terminals at airports.

6.Expansion and strengthening of operation area, viz. Runways, Aprons, Taxiway

etc.

7.Provision of visual aids.

10.Provision of Communication and Navigation aids, viz. ILS, DVOR, DME, Radar

etc.

Major Features of this enterprise:

It provides Air traffic management (ATM) services over Indian airspace and

adjoining oceanic areas. It also manages a total of 125 Airports, including 18

International Airports, 7 Customs Airports, 78 Domestic Airports and 26 Civil

enclaves at Military Airfields. AAI also has ground installations at all airports and

25 other locations to ensure safety of aircraft operations. AAI covers all major air-

routes over Indian landmass via 29 Radar installations at 11 locations along with

700VOR/DVOR installations co-located with Distance Measuring Equipment

(DME). 52 runways are provided with Instrument landing system (ILS) installations

with Night Landing Facilities at most of these airports and Automatic Message

Switching System at 15 Airports.

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B. Indian Railways.(IR)

Type of Enterprise Government Sector

Industry related to Rail Transport

Foundation date 8.05.1844

Headquartered at New Delhi, India

Services or Product offered Passenger railways

Freight services

Parcel carrier

Catering and Tourism Services

Parking lot operations

No. Of Employees 1.308 Million

Ratna's awarded Mini-ratna-I (to IRCTC)

Minister of Railways Piyush Goyal

Chairman/person Ashwin Lohani

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Some facts and figures about the Indian Railways:

1. IR runs more than 13,000 passenger trains daily, on both long-distance and

suburban routes, from 7,349 stations across India. The trains have a five-digit

numbering system. Mail or express trains, the most common types, run at an

average speed of 50.6 kilometres per hour (31.4 mph). In the freight segment, IR

runs more than 9,200 trains daily. The average speed of freight trains is around 24

kilometres per hour (15 mph).

2.As of March 2017, IR's rolling stock consisted of 277,987 freight wagons, 70,937

passenger coaches and 11,452 locomotives. IR owns locomotive and coach-

production facilities at several locations in India.

3.The world's eighth-largest employer, it had 1.308 million employees as of

March 2017.

4.In the year ending March 2018, IR is projected to carry 8.26 billion passengers

and transport 1.16 billion tons of freight . In the fiscal year 2017-18, IR is

projected to have earnings of Rs1.874 trillion (US$29 billion), consisting of

Rs1.175 trillion (US$18 billion) in freight revenue and Rs501.25 billion (US$7.7

billion) in passenger revenue, with an operating ratio of 96.0 percent.

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Research Methods

1.The study is descriptive , analytical and conclusive in nature. To obtain those

aim(s) or objectives, performance appraisal of Two public sector Enterprises are

analysed namely Airport Authority of India and Indian Railways . And, Differences

and Similarities between them are established.

2.The data is collected from various secondary sources Information like, internet

websites which includes various Journals, Blogs , Official Websites and accounts of

people working in these Public Sector Enterprises.

3.The main aim of the study is to gain comprehensive knowledge about the

Companies and how the Appraisal system works in these Public Sector

Enterprises keeping the difference in no. of employees in both of them in mind.

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Findings In this section we will discuss about the findings collected from various sources.

The findings of the research include types of appraisal system induced by Indian

railways and AAI. And we discuss about the appraisal system in application in a

descriptive manner.

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Appraisal System of Indian Railways.

The existing system adopted in Indian Railways is called as Confidential Report

Writing System. Railways follow self appraisal system. This is adopted for non-

gazzetted railway servants. The Confidential Report is an important document,

providing for the basic and vital inputs necessary for assessing the performance of

a Railway servant for his/her advancement in official career. The report is written

annually on every Railway servant, except those mentioned below, in the form

prescribed for the purpose, generally for the period ending with the financial year,

appraising the performance, character, conduct and qualities of the concerned

Railway servant . The Confidential Report Writing is not used for the following

groups of staff:

1) Group D Railway Servants: Confidential Reports on Non-gazzetted Railway

servants.

2) 2)Group C Railway servants in the initial recruitment grade 950-1500

except those working in the Ministry of Railways;

3) Group C Railway servants whose initial grade is higher than the grade of

Rs.950 1500 (RPS) provided the next higher grade for them is a non-

selection grade, except in the case of Skilled Gr.I & II. Artisans staff for

whom Confidential Report shall be written for those in two grades below

the selection grade. In respect of Railway servants working in grade

Rs.1600-2660, likely to be considered for promotion to Group B Gazzetted

service, an additional section called Section-II is required to be written in the

prescribed form.

Different Forms of CR Writing Systems for Group C Employees

The first part of each of the forms is designed to get the personal information

such, name, date of birth, designation, station employed, pay , date of

appointment, date of entry in the present grade, permanent/temporary status,

qualification , particulars of examinations passed (including departmental) and

whether belonging to SC/ST community. The second part deals with the self-

appraisal in which the employee himself has to declare his prescribed duties and

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brief resume of work done during the assessment year. The third part is the part

that gives the data regarding the assessment by the reporting officer usually the

supervisor under whom the employee is working. The fourth part has the remarks

by the reviewing officer. The six different forms are-

1. The form Annexure I A is used in writing the Confidential Report for the

Station masters and Station Superintendents.

2. The form Annexure I is used in the Confidential Report writing for the Group

C staff including workshop staff except PWI s(public way inspector),

APWIs,(Assistant public way inspectors), Signal Inspectors, Assistant Signal

Inspectors and teachers / instructors.

3. The form Annexure II is used in writing the Confidential Report for the

I.O.W.s.(inspector of works); A.I.O.s(Assistant inspector of works).

4. The form Annexure III is the form used in writing the Confidential Report for

the Group C staff .

5. The form Annexure IV is the form used in the writing of Confidential Report

for Teachers/Instructors in Teaching and Training Schools.

6. The form Annexure V: Confidential Report for the staff in scale Rs. 4500-7000

grades of 5th pay commission.

Self appraisal

Every Railway servant working in category should, before the CR is initiated to

furnish a brief description of his duties and a resume of the work done - limited to

100 words - by him during the year/period for which CR on him/her is written,

bringing out the special achievements during the period and also shortfall in

achievement, if any, together with reasons therefore this should be done in part-II

of the CR form.

Assessment of the Reporting officer Next is the assessment of the Reporting

officer.

In this form, the Reporting officer will give his assessment about the employee

regarding the self appraisal given by the employee in the II part. This consists of

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comments on the character of the employee like integrity, tact and temper,

conduct, attendance and physical fitness, departmental ability such as initiative

and direction, intelligence, keenness, promptness and efficiency, power to control

others, organizing/supervising ability, capacity for hard work and amenability to

discipline, special qualification or attitude, physical disability for some outdoor or

posting to particular area, reliability, relations with superiors, subordinates and

customers, drafting power, knowledge of rules, regulations and procedures, ability

to conduct enquiry, sift evidence and prepare report, attendance of refresher

courses, reprimanding if any for indifferent working, outstanding and

commendation of work done and general grading. The confidential report should

be initiated by the Reporting Authority, who is an immediate superior to the

Railway servant on whom the report is written or such other authority as may be

specifically empowered in this behalf by the General Manager or any other officer

authorized by him. The confidential reports of Railway servants working in grade

below Rs.1600-2660 (RPS) should be initiated by Supervisors working in Gr.

Rs.2000-3200 (RPS) and above. For those working in Gr. Rs.1600-2660 (RPS) and

above, the report should be initiated by a Gazzetted officer. Where a close relative

of Reporting Authority Reviewing Officer and the officer reported upon, the same

rule would apply in respect of the Reviewing officer and the role of the Reporting

officer will be transferred to the authority next higher. In cases of this nature,

should there be any doubt, it would be incumbent upon the Reporting Officer to

consult the next higher authority before he writes the report. The confidential

Report should be recorded within a month, at the expiry of the reporting period.

Any delay in this regard by the Reporting Authority will be adversely viewed. If the

Railway servant delays submission of self-appraisal, the Reporting Authority

should comment adversely on this aspect. If the Reporting authority retires or

demits office, he may give the Confidential Reports on his subordinates within a

month of his retirement / demission from office. Reporting Authority should

realize that the objective behind the appraisal is to develop the Railway servant,

so that he / she may realize his / her true potential. There should, therefore, be no

hesitation on the part of the Reporting Authority to report shortcomings in

performance, attitude or overall personality of the Railway servant reported upon.

Although writing CR is a year end exercise, in order that it may be an effective tool

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for developing the individual, the Reporting Authority should, at regular intervals,

review the performance of the Railway servants and take corrective steps as may

be necessary, by way of advice, counsel etc. It should be the endeavour of each

Reporting Authority to present the truest possible picture of the Railway servant

on whom the report is written, with regard to his/her performance, conduct, be.

ASSESSMENT FOR GRADE B PROMOTION

If the employee is considered for promotion to Grade-B service, then he should be

assessed for his integrity, leadership quality, decision making capacity, willingness

to shoulder higher responsibility, ability to inspire confidence, guide, motivate and

obtain best out of the staff and ability to enforce discipline using the form given.

This Section II of the Pert III of the CR form should be reviewed by DRM or Dy.

Head of the Department. The Head of the department also has to give his

remarks. The confidential Report should be reviewed and countersigned by the

Reviewing Authority ordinarily within a month of its receipt from the Reporting

Authority.

Different levels forms of organizational roles in Indian railways

TYPES OF FORM TYPES OF EMPLOYEES

ANNEXURE A I STATION MASTERS AND STATION

SUPERINDENTS

ANNEXURE I GROUP C STAFF EXCEPT PWI s(public

way inspectors), APWIs(assistant public

way inspectors), Signal Inspectors,

Assistant Signal Inspectors and

teachers.

ANNEXURE II the I.O.W.s(inspector of works).,

A.I.O.W.s(Assistant inspector of works)

ANNEXURE III GROUP C STAFF

ANNEXURE IV Teachers/Instructors in Teaching and

Training Schools.

ANNEXURE V The staff in scale Rs. 4500-7000

grades of 5th pay COMMISON

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Appraisal System of Airport Authority of

India

They have a adopted a new system of appraisal , known as PMS(Performance

management System) in place of PAR(Performance appraisal report) from April,

2010.

The new PMS is based on key performance area and instruction from DPE issues

time to time in accordance with needs.

The new appraisal system of PMS puts emphasis on the following things:

Objectives:

1. Realignment of organizational goals.

2. Identification of high performance for higher rewards.

3. Evaluation of Potential of employee.

4. Performance appraisal transparent in nature.

It is applicable to all the executives of AAI(E1-E7)

KPA based appraisal system has following stages in it:

1. Performance planning

2. Mid-year review

3. Annual Assessment

4. Normalization

5. Feedback, Coaching and counseling

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KPA based appraisal system is a continuous process and is, also known as

KPA based appraisal cycle.

Stage Description

1. Performance Planning ● Setting up of objective.

● Determining priorities and

weightage of results.

● Identification and utilization

of resources. (Manpower,

tools, training budgets)

2. Mid-year review • Rei for i g good perfor a e in time

• Updati g the status of targets i.e. progress review

• Ide tifyi g areas for mid-

course correction

• Re isiti g KPAs and goals, if

necessary

• Assessi g resour e a d skill requirements affecting the

i di idual‟s perfor a e. • Dis ussio a d feed a k o functional competencies,

Managerial competencies,

potential competencies and core

values actualization

• Pro idi g early warnings of

non-performance

3.

Annual assesment

• Dis uss a d arri e at a assessment of performance with

respect to agreed targets

• Assess the o pete ies, pote tial and core values actualization by the

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individual

• Agree upo i pro e e t pla s and development needs forthe

individual.

4. Normalization ` • E sure parity a d i tegrity y minimizing variation in rating by

different reporting officers across

various departments and locations.

• E ha e o je ti ity a d transparency in the appraisal system

• To view individual performance

from the perspective of

organizational achievement.

5. Feedback and counseling 1. Benefits of Feedback are as

follows:

• Creates tra spare y aki g Key Performance Area based

Performance Appraisal System more

acceptable to individuals

• Rei for es good perfor a e o time

• E a les de elop e t of oa hi g and mentoring relationship between

reporting officer and executive

• E sure that orga izatio al objectives are achieved to an

acceptable standard and in an

acceptable form.

2. Counseling in the KPA based

Performance Appraisal System

context essentially is a process

by which executives can

receive assistance in sorting

out issues related to current

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and future responsibilities and

aspirations.

• Re og itio a d u dersta di g of existing strengths

• E po eri g i.e. e a li g the individual to recognize their own

problems and expressing the same.

• Fa ilitati g a tio through guidance and expertise, i.e.

facilitating the process whereby the

individual evaluates alternatives and

formulates action plans to achieve

the most suitable course of action.

• Helpi g i di iduals to take ownership of the outcomes of their

chosen action.

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Conclusion In this section of the project we have looked into whole findings of the project,

and discussed about in brief the differences between the Appraisal system of both

the enterprises.

In the case of Indian Railways, the type of appraisal system used is Self-appraisal

and, Employee self-appraisal, within a performance management or annual

performance review system involves asking the employee to self-evaluate his or

her job performance.

Whereas, in the case of Airport Authority of India ,it uses Performance

Management System and, Performance management is a process by which

managers and employees work together to plan, monitor and review an

employee s work objectives and overall contribution to the organization. More

than just an annual performance review, performance management is the

continuous process of setting objectives, assessing progress and providing on-

going coaching and feedback to ensure that employees are meeting their

objectives and career goals.

Now, the basic differences we have found between Self Appraisal(for IR) and

Performance Management System(for AAI) are as follows:

● Performance management is required for strategic development whereas

self appraisal is for operational purpose.

● Performance management means planning for future to increase employee

morale and productivity whereas self appraisal stands for analysis of

employees past performance on its own.

● Self appraisal is the annual report of an employee whereas performance

management is a continuous process.

● Performance management usually takes qualitative and quantitative

approach whereas self appraisal deals with qualitative approach only.

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