EMPLOYEE’S PERFORMANCE APPRAISAL IN PSU’S WITH SPECIAL REFERENCE TO BEML LIMITED” BANGALORE

CHAPTER I INTRODUCTION INTRODUCTION TO HUMAN RESOURCE MANAGEMENTHuman resource is a major resource in the effective working of the organization. This resource needs to be handled in a systematic process for achieving optimized utilization of the other resource.HRM is a process of bringing people and organization together, so that the goals of each are met. It is the part of management process which is concerned with management of resource in an organization. It tries to secure best from people by winning their whole hearted co-operation. In short, it may be defined as the process of procuring, development and maintaining competent work force to achieve the goals of the organization in a effective and efficient manner. Meaning HRM is “the process of accomplishing organization objectives by acquiring, retaining, terminating, developing and properly using the human resource in the organization Definition According to D. Yoder and others-“it is that phase of management which deals with the effective control and use of manpower and distinguished from other sources of power”. Scope of HRM The scope of HRM is indeed vast. All major activities in the working life of a worker from the time of his or her entry into an organization until he or she leaves comes under the preview of HRM Specified HR activities includes             HR planning Job analysis and design Recruitment and selection Orientation and placement Training and development Performance management Performance appraisal Job evaluation Employee and executive remuneration Motivation and communication Welfare Safety and health Industrial relation and the like HRM vs HRD HRM AND HRD are used interchangeably, but these two are different terms.HRD is at the center of HRM. so HRM is a wider term then HRD. there is a growing need to develop skills, talents, capabilities, potentialities of people in the organization and this task is taken up in HRM.HRD aims to develop individual employee in accordance with his aspiration and potentialities on the one hand, the company‟s requirement on the other.HRD programs are described as training and educating programs T.V.Roa and Udai Pareek have given six dimension of HRD      Performance appraisal Employee counseling Career development and planning Training Organizational development INTRODUCTION TO PERFORMANCE APPRAISAL Performance appraisal is the systematic evaluation of the individual with respect of his performance on the job and his potential for development. Performance appraisal is defined as a systematic, periodic evaluation of the work of an individual of an organization usually made by a superior or someone in a position to observe his performance. Traditionally appraising the individual performance has been know as merit rating, in recent year, several newer terms have been coined to describe this method. Some of them are performance appraisal, progress report, performance review, performance evaluation, employee appraisal, personal review and so on. Appraisals are carried out for helping the organization to determine the individual objectives, promotion transfer and training needs and also personality development. Then appraiser though accepting the above aims may see the appraisal interview having different purpose. Unfortunately the appraisal so often seems something to be feared. In performance appraisal, it is essential that the rates and raters, are fully aware of the system and understand the methods for achieving and rewarding performance. The objectives or the purpose of performance appraisal, the standards set, the methods followed and duration should be clear to everyone who participates in it. Performance appraisal is the step where the management finds out how effective it has been in hiring and placing the employee in the organization. In other word performance appraisal is a method of evaluating the behavior of employees in the work spot, normally including both the quantities as well as qualitative aspects of job performance. Performance appraisal is a systematic and objective way of judging the relative worth or ability of an employee in performing his job. MEANING Performance appraisal is “the process of evaluating the performance and qualification of employees in terms of requirement of the job for which one is employed for the purpose of administration including placement, selection for promotion, providing financial rewards and other actions which require differential treatment among the member of group as distinguished from actions affecting all members equally. Thus it is a process of estimating or judging the value, excellence, qualities or status of employees individually or collectively in a group. It is a part of staffing process. DEFINATION According to dale s. beach, “performance appraisal is the systematic evaluation of the individual with respect to his/her performance on the job and his/her potential for development”. According to Randall s Schuler, “Performance appraisal is the formal structure system of measuring and evaluating an employee‟s job related behavior and outcomes to discover how and why the employee is presently performing on the job and how the employee can perform more effectively in the future so that the employee, organization and society all are benefited”. NEED FOR PERFORMANCE APPRAISAL: Performance appraisal is needed in order to:       Provide feedback information about the level of achievement and behavior of subordinate. Enable an organization to maintain an inventory of the number and quality of all manager and to identify their training needs and aspiration so that it can be met. Provide information about the performance ranks basing on which decision regarding salary fixation, promotion, demotion and transfer decision are taken. Suggesting ways of improving the employee‟s performance after knowing that he has not been up to mark in the review period. Provide information, which helps to counsel the subordinates. Prevent grievances and indisciplinary activities. OBJECTIVES OF PERFORMANCE APPRAISAL:           To create and maintain satisfactory level of performance To help each employees to understand more his role and become clear about his function To contribute to the employee growth an development through training self and management development programs To help each employee to understand his strength and weekness with respect to his role and functions in the organization To help the superiors to have a proper understanding about their subordinates To ensure organization effectiveness through correcting employees for standards and improved performance and suggestion the change in the employee behavior To guide job changes with help of continuous ranking To provide information for making decision regarding lay off, retrenchment and so on To facilitate fair and equitable compensation based on performance To facilitate testing and validating selection test, interview techniques etc, through comparing their scores with performance appraisal ranks. USES OF PERFORMANCE APPRAISAL: Performance appraisal enables management to make effective decision or correct their earlier decision relating to the following issues  Performance improvement Performance feedback allows employee, management and personal specialists to intervene with appropriate action to improve performance.  Compensation adjustment Performance evaluation helps the decision makers to determine who should receive the pay raises  Placement decision Promotion, transfer and demotions are demotions are usually based on past or anticipated performance. Often promotions are the rewards for the past performance.   Career planning and development Performance feedback guides career decision about specific career paths one should investigate. Information inaccuracies Poor performance may indicate error in job analysis, human resource plans or other personal management information system  Equal employment opportunities Accurate performance appraisals that actually measure job related performance ensure that internal placement designs are not discriminatory  External changes Sometimes performance is influenced by factors outside the work environment such as family, health or other personal matters. If uncovered through appraisal, the human resource department may be able to provide assistance  Feedback to human resource Performance appraisal gives the necessary feedback to the human resource department regarding all the aspects of the employee, which can be used by them to draw conclusions about employee. THE PROCESS OF PERFORMANCE APPRAISAL SYSTEM:  Establish Performance Standards: At the time of designing a job description, performance standards are usually developed for the position. These standards should be clear and objective to be understood and measured. These standards should be discussed with the supervisors to find out which different factors are to be incorporated, weights, and points to be given to each factor. Then these point should be indicated on the Appraisal Form, for appraising the performance of the employees.  Communicate Performance Expectations to employees: The next step is to communicate these standards to the employees, otherwise the employees would find it difficult to guess what is expected of them.  Measure actual Performance: Four sources of information are frequently used to measure actual performance: o personal observation, o statistical reports, o oral reports, o written reports.  Compare actual Performance with Standards: The employee is apprised and judged of his potential for growth and advancement. Attempts are made to note deviations between „standard performance‟ and „actual performance‟.  Discuss the Appraisal with the Employee: At the next stage, the results of appraisal are discussed periodically with the employees, where good points, weak points, and difficulties are indicated and discussed so that performance is improved.  Indicate Corrective Action: The final step is the initiation of corrective action when necessary. Coaching and counseling may be done or special assignment and projects may be set; persons may be deputed for formal training courses, and decision-making responsibilities and authority may be delegated to the subordinates. STEPS FOR DEVELOPING A SYSTEMATIC PERFORMANCE APPRAISAL:  Identify key performance criteria Development of key performance criteria should be based on a comprehensive job description and undertaken in consultation with employees.  Develop appraisal measures In order to obtain accurate and valid performance appraisals, appraisal measures should be tailored to the specific job or “job Steps for developing a systematic performance appraisal family” (i.e., groups of similar jobs). An evaluation of factors in the work environment which help or hinder performance is also recommended. This ensures that realistic expectations are set for employee‟s performance, and is also likely to increase the perceived fairness and acceptability of performance appraisals.  Collect performance information from different sources Traditionally, it has been the sole responsibility of managers / supervisors to assess performance. However, other organizational members (e.g., clients, coworkers, subordinates) can be a valuable source of information as they are likely to have exposure to different aspects of an employee‟s performance. Collecting information from multiple sources can increase the accuracy of performance evaluation (i.e., reduce bias), and increase employee‟s perceptions of fairness  Conduct an appraisal interview The two central purposes of the appraisal interview are to: o Reflect on past performances to identify major achievements, areas for further improvement, and barriers / facilitators to effective performance o . Identify goals and strategies for future work practice. o The appraisal interview should be a constructive, two-way exchange between the supervisor and employee, with preparation for the interview done by both parties beforehand. o . Evaluate the appraisal process FIVE DIFFERENT SOURCES OF PERFORMANCE APPRAISAL ARE:      Manager / supervisor appraisals Self appraisals Co-worker appraisals Subordinate appraisals Client appraisals. Manager / supervisor appraisals: Managers / supervisors play a central role in the appraisal process, and should always be included as one of the main appraisers. In essence, managers and supervisors have two roles in performance appraisal: o “Judge”: assessing performance o “Coach”: providing constructive feedback and identifying areas for improvement. Performing both roles simultaneously can be difficult. Employees may be reluctant to admit areas for improvement if performance assessment is linked with desired outcomes such as pay, promotion or opportunities to work in desired areas. One solution is to separate the judge and coach roles by conducting separate appraisal meetings. Self-appraisals: The process of evaluating one‟s own performance can help to increase employee‟s commitment to the appraisal process, perceptions of appraisal fairness, and satisfaction with the appraisal process. Self-appraisal can also be useful for identifying areas for development. Not surprisingly, self-appraisals are usually biased towards leniency. Strategies to increase the accuracy of self appraisals include:    Using clear definitions of performance criteria linked to specific, observable behaviors Informing employees that their ratings will be checked and compared to other sources of appraisal (i.e., for accuracy) Ensuring employees receive regular feedback on their performance. It is recommended that self appraisals are used for professional development purposes, rather than for making administrative decisions (i.e., pay increases, promotion). Co-worker appraisals: Co-workers can provide valuable feedback on performance, particularly where teamwork occurs. Co-workers are often aware of different aspects of a employee‟s performance that managers may not have the opportunity to observe. In addition, as there is usually more than one co-worker who rates a worker‟s performance, their evaluations tend to be more reliable. Co-worker evaluations, however, may be biased towards those individuals most well liked in an organisation (i.e., friendship bias). Furthermore, co-worker appraisals may have a negative impact on teamwork and cooperation if employees are competing with one another for organizational incentives and rewards. It is recommended that co-worker appraisals are used for professional development rather than administrative decisions. Subordinate appraisals: Subordinates are a valuable source of information regarding particular aspects of a supervisor or leader‟s performance such as communication, team building or delegation. Subordinates can provide feedback to help managers / supervisors develop their skills in these areas. The focus should be on aspects of managerial performance that subordinates are able to comment upon. This source of appraisal may only be appropriate in larger organizations where there are sufficient subordinates to allow anonymity. Client appraisals: Clients may also offer a different perspective on a employee‟s performance, particularly for jobs that require a high degree of interaction with people. For example, client appraisals can be a valuable source of feedback regarding the quality of service provision (e.g., the quality of interaction, degree of empathy, level of support, degree of professionalism). Organizations often have performance contracts that specify goals and deliverables for client outcomes. Whilst it is important that organizational goals and deliverables are reflected in the appraisal criteria for individuals and teams, it is recommended that particular care be taken if incorporating client outcomes. Relying on client outcomes as an indicator of performance can have undesirable effects due to the complex and sensitive nature of work. A range of factors may influence client outcomes, many of which are outside the control of an individual employee. It is rare for a successful (or otherwise) outcome to be the sole result of one person‟s efforts. This makes client outcomes a poor reflection of the quality of treatment provided by the employee. STRATEGIE TO SUPPORT APPRAISER AND ENHANCE APPRAISAL ACCURACY: Rating another person‟s performance is not an easy task, particularly with complex jobs or performance criteria. Strategies to support appraisers and increase the likelihood of accurate assessments include:    Providing practical training in rating techniques, which includes opportunities to practice appraising performance and providing feedback Limiting the assessment to performance criteria that an appraiser has observed / experienced in regard to the employee Providing structured assessment tools with clear explanations regarding the criteria to be assessed, and performance standards. METHODS OF PERFORMANCEAPPRAISAL: Past-oriented methods  Rating Scales: The rating scale method offers a high degree of structure for appraisals. Each employee trait or characteristic is rated on a bipolar scale that usually has several points ranging from “poor” to “excellent” (or some similar arrangement). The traits assessed on these scales include employee attributes such as cooperation, communications ability, initiative, punctuality and technical (work skills) competence. The nature and scope of the traits selected for inclusion is limited only by the imagination of the scale‟s designer, or by the organization‟s need to know. The one major provision in selecting traits is that they should be in some way relevant to the appraisee‟s job. Advantages The greatest advantage of rating scales is that they are structured and standardised. This allows ratings to be easily compared and contrasted - even for entire workforces. Each employee is subjected to the same basic appraisal process and rating criteria, with the same range of responses. This encourages equality in treatment for all appraisees and imposes standard measures of performance across all parts of the organization. Rating scale methods are easy to use and understand. The concept of the rating scale makes obvious sense; both appraisers and appraisees have an intuitive appreciation for the simple and efficient logic of the bipolar scale. The result is widespread acceptance and popularity for this approach. Disadvantages  Trait Relevance Are the selected rating-scale traits clearly relevant to the jobs of all the appraisees? It is inevitable that with a standardized and fixed system of appraisal that certain traits will have a greater relevance in some jobs than in others. For example, the trait “initiative” might not be very important in a job that is tightly defined and rigidly structured. In such cases, a low appraisal rating for initiative may not mean that an employee lacks initiative. Rather, it may reflect that fact that an employee has few opportunities to use and display that particular trait. The relevance of rating scales is therefore said to be context-sensitive. Job and workplace circumstances must be taken into account.  Systemic Disadvantage Rating scales, and the traits they purport to measure, generally attempt to encapsulate all the relevant indicators of employee performance. There is an assumption that all the true and best indicators of performance are included, and all false and irrelevant indicators are excluded. This is an assumption very difficult to prove in practice. It is possible that an employee‟s performance may depend on factors that have not been included in the selected traits. Such employees may end up with ratings that do not truly or fairly reflect their effort or value to the organization. Employees in this class are systemically disadvantaged by the rating scale method.  Perceptual Errors This includes various well-known problems of selective perception (such as the horns and halos effect) as well as problems of perceived meaning. Selective perception is the human tendency to make private and highly subjective assessments of what a person is “really like”, and then seek evidence to support that view (while ignoring or downplaying evidence that might contradict it). This is a common and normal psychological phenomenon. All human beings are affected by it. In other words, we see in others what we want to see in them. An example is the supervisor who believes that an employee is inherently good (halo effect) and so ignores evidence that might suggest otherwise. Instead of correcting the slackening employee, the supervisor covers for them and may even offer excuses for their declining performance. On the other hand, a supervisor may have formed the impression that an employee is bad (horns effect). The supervisor becomes unreasonably harsh in their assessment of the employee, and always ready to criticize and undermine them. The horns and halo effect is rarely seen in its extreme and obvious forms. But in its more subtle manifestations, it can be a significant threat to the effectiveness and credibility of performance appraisal.  Perceived Meaning Problems of perceived meaning occur when appraisers do not share the same opinion about the meaning of the selected traits and the language used on the rating scales. For example, to one appraiser, an employee may demonstrate the trait of initiative by reporting work problems to a supervisor. To another appraiser, this might suggest an excessive dependence on supervisory assistance - and thus a lack of initiative. As well, the language and terms used to construct a scale - such as “Performance exceeds expectations” or “Below average skill” - may mean different things to different appraisers.  Rating Errors The problem here is not so much errors in perception as errors in appraiser judgement and motive. Unlike perceptual errors, these errors may be (at times) deliberate. The most common rating error is central tendency. Busy appraisers, or those wary of confrontations and repercussions, may be tempted to dole out too many passive, middle-of-theroad ratings (e.g., “satisfactory” or “adequate”), regardless of the actual performance of a subordinate. Thus the spread of ratings tends to clump excessively around the middle of the scale. This problem is worsened in organizations where the appraisal process does not enjoy strong management support, or where the appraisers do not feel confident with the task of appraisal.  Check-list Method: Under this method, checklist of “Statements of Traits” of employee in the form of Yes or No based questions is prepared. Here, the rater only does the reporting or checking and HR department does the actual evaluation. The rater concerned has to tick appropriate answers relevant to the appraises. When the check-list is completed, it is sent to HR department for further processing. Various questions in the check list may have either equal weightage or more weightage may be given to those questions which are more important. The HR department then calculates the total scores which show the appraisal result of an employee. Advantages : economy, ease of administration, limited training required, standardization. Disadvantages Rater‟s biases, use of improper weights by HR Dept, does not allow rater to give relative ratings.  Force Choice Method: A series of statements arranged in the blocks of two or more are given and the rater indicates which statement is true or false. The rater is forced to make a choice. HR department does actual assessment. Advantages Absence of personal biases because of forced choice. Disadvantages Statements may not be correctly framed. Force Distribution Method: One of the problems faced in large organizations is relative assessment tendencies of raters. Some are too lenient and others too severe. This method overcomes that problem. It forces everyone to do a comparative rating of all the employees on a predetermined distribution pattern of good to bad. Say 10% employees in Excellent Grade, 20% in Good Grade, 40% in Average Grade, 20% in Below Average Grade and 10% in unsatisfied grade. The real problem of this method occurs in organizations where there is a tendency to pack certain key departments with all good employees and some other departments with discards and laggards. Relatively good employees of key departments get poor rating and relatively poor employees of laggards‟ departments‟ get good rating.  Critical Incident Method: In this method, only critical incidents and behavior associated with these incidents are taken for evaluation. This method involves three steps. A test of noteworthy on the job behavior is prepared. A group of experts then assigns scale values to them depending on the degree of desirability for the job. Finally, a checklist of incidents which define good and bad employees is prepared. Advantages This method is very useful for discovering potential of employees who can be useful in critical situation. Disadvantages     Negative incidents are, generally, more noticeable than positive ones. The recording of incidents is a core to the superior and may be put off and easily forgotten. Overly close supervision may result. Essay Method: In the essay method approach, the appraiser prepares a written statement about the employee being appraised. The statement usually concentrates on describing specific strengths and weaknesses in job performance. It also suggests courses of action to remedy the identified problem areas. The statement may be written and edited by the appraiser alone, or it be composed in collaboration with the appraisee. Advantages The essay method is far less structured and confining than the rating scale method. It permits the appraiser to examine almost any relevant issue or attribute of performance. This contrasts sharply with methods where the appraisal criteria are rigidly defined. Appraisers may place whatever degree of emphasis on issues or attributes that they feel appropriate. Thus the process is open-ended and very flexible. The appraiser is not locked into an appraisal system the limits expression or assumes that employee traits can be neatly dissected and scaled. Disadvantages Essay methods are time-consuming and difficult to administer. Appraisers often find the essay Technique more demanding than methods such as rating scales. The techniques greatest advantage - freedom of expression - is also its greatest handicap. The varying writing skills of appraisers can upset and distort the whole process. The process is subjective and, in consequence, it is difficult to compare and contrast the results of individuals or to draw any broad conclusions about organizational needs  Grading In this method, certain categories of abilities of performance are defined well in advance and person are put in particular category depending on their traits and characteristics. Such categories may be definitional like outstanding, good, average, poor, very poor or may be in terms of letter like A, B, C, D etc with A indicating the best and D indicating the worst. This method, however, suffers from one basic limitation that the rater may rate most of the employees at higher grades.  Performance Tests & Observations: This is based on the test of knowledge or skills. The tests may be written or an actual presentation of skills. Tests must be reliable and validated to be useful. Advantage Tests only measure potential and not attitude. Actual performance is more a function of attitude of person than potential. Disadvantages Sometimes costs of test development or administration are high  Confidential Reports : Though popular with government departments, its application in industry is not ruled out. Here the report is given in the form of Annual Confidentiality Report (ACR). The system is highly secretive and confidential. Feedback to the assessee is given only in case of an adverse entry. Disadvantage is that it is highly prone to biases and recency effect and ratings can be manipulated because the evaluations are linked to future rewards like promotions, good postings, etc.  Comparative Evaluation Method (Ranking & Paired Comparisons): These are collection of different methods that compare performance with that of other coworkers. The usual techniques used may be ranking methods and paired comparison method. o Ranking Method : Superior ranks his worker based on merit, from best to worst. However how best and why best are not elaborated in this method. It is easy to administer. o Paired Comparison Method : In this method each employee is paired with every other employee in the same cadre and then comparative rating done in pairs so formed. The number of comparisons may be calculated with the help of a formula – N x (N-1) / 2. The method is too tedious for large departments and often such exact details are not available with rater. Future-Oriented Methods  MBO (Appraisal By Results ) : The use of management objectives was first widely advocated in the 1950s by the noted management theorist Peter Drucker. MBO (management by objectives)methods of performance appraisal are results-oriented. That is, they seek to measure employee performance by examining the extent to which predetermined work objectives have been met. Usually the objectives are established jointly by the supervisor and subordinate. Once an objective is agreed, the employee is usually expected to self-audit; that is, to identify the skills needed to achieve the objective. Typically they do not rely on others to locate and specify their strengths and weaknesses. They are expected to monitor their own development and progress. Advantages The MBO approach overcomes some of the problems that arise as a result of assuming that the employee traits needed for job success can be reliably identified and measured. Instead of assuming traits, the MBO method concentrates on actual outcomes. If the employee meets or exceeds the set objectives, then he or she has demonstrated an acceptable level of job performance. Employees are judged according to real outcomes, and not on their potential for success, or on someone‟s subjective opinion of their abilities. The guiding principle of the MBO approach is that direct results can be observed, whereas the traits and attributes of employees (which may or may not contribute to performance) must be guessed at or inferred. The MBO method recognizes the fact that it is difficult to neatly dissect all the complex and varied elements that go to make up employee performance. MBO advocates claim that the performance of employees cannot be broken up into so many constituent parts - as one might take apart an engine to study it. But put all the parts together and the performance may be directly observed and measured. Disadvantages MBO methods of performance appraisal can give employees a satisfying sense of autonomy and achievement. But on the downside, they can lead to unrealistic expectations about what can and cannot be reasonably accomplished. Supervisors and subordinates must have very good “reality checking” skills to use MBO appraisal methods. They will need these skills during the initial stage of objective setting, and for the purposes of self-auditing and self-monitoring. Unfortunately, research studies have shown repeatedly that human beings tend to lack the skills needed to do their own“reality checking”. Nor are these skills easily conveyed by training. Reality itself is an intensely personal experience, prone to all forms of perceptual bias. One of the strengths of the MBO method is the clarity of purpose that flows from a set of wellarticulated objectives. But this can be a source of weakness also. It has become very apparent that the modern organization must be flexible to survive. Objectives, by their very nature, tend to impose a certain rigidity. Of course, the obvious answer is to make the objectives more fluid and yielding. But the penalty for fluidity is loss of clarity. Variable objectives may cause employee confusion. It is also possible that fluid objectives may be distorted to disguise or justify failures in performance.  Assessment Center Method : This technique was first developed in USA and UK in 1943. An assessment centre is a central location where managers may come together to have their participation in job related exercises evaluated by trained observers. It is more focused on observation of behaviours across a series of select exercises or work samples. Assesses are requested to participate in in-basket exercises, work groups, computer simulations, role playing and other similar activities which require same attributes for successful performance in actual job. Advantages Well-conducted assessment centre can achieve better forecasts of future performance and progress than other methods of appraisals. Also reliability, content validity and predictive ability are said to be high in Assessment Centers. The tests also make sure that the wrong people are not hired or promoted. Finally, it clearly defines the criteria for selection and promotion. Disadvantages Concentrates on future performance potential. No assessment of past performance. Costs of employees travelling and lodging, psychologists. Ratings strongly influenced by assessee‟s interpersonal skills. Solid performers may feel suffocated in simulated situations.  360 Degree Appraisal: It is a technique in which performance data/feedback/rating is collected from all sections of people employee interacts in the course of his job like immediate supervisors, team members, customers, peers, subordinates and self with different weightage to each group of raters. This technique has been found to be extremely useful and effective. It is especially useful to measure inter-personal skills, customer satisfaction and team building skills. One of the biggest advantages of this system is that assesssees cannot afford to neglect any constituency and has to show all-round performance. However, on the negative side, receiving feedback from multiple sources can be intimidating, threatening, expensive and time consuming.  Psychological Appraisals: These appraisals are more directed to assess employees potential for future performance rather than the past one. It is done in the form of in-depth interviews, psychological tests, and discussion with supervisors and review of other evaluations. It is more focused on employees emotional, intellectual, and motivational and other personal characteristics affecting his performance. This approach is slow and costly and may be useful for bright young members who may have considerable potential. However quality of these appraisals largely depends upon the skills of psychologists who perform the evaluation Performance counseling Once the performance of the employee is appraised, the organization has to practice and pay enough attention to perfect counseling, to review the system that aims at developing employee. The superior after appraisal should tell the appraised employee in which he is good and in which he is not. He should also guide him to improve in which he does not master. Thus, the purpose of counseling is to help employee to be aware of his own strength and weakness, opportunities available for development and the threats in the form of technological changes etc .The superior can do performance counseling in the form of interviews. PROBLEMS OF PERFORMANCE APPRAISAL: None of the methods for appraising is absolutely valid or reliable. each has its own strengths and weakness        Failure of superior in conducting perfect appraisal and post performance appraisal interview. Most part of appraisal is based on subjectivity Negative rating affect interpersonal relations Feedback and post appraisal interview may have setback on production Some superiors completed appraisal reports within a few minutes Relationship between appraisal rates and performance after promotion was not significant Some rating particularly about the potential appraisal are not purely based on work ESSENTIALS FOR A SUCCESSFUL PERFORMANCE APPRAISAL SYSTEM       Basing appraisals on accurate and current job descriptions Ensuring that appraisers have adequate knowledge and direct experience of the employee‟ s performance Providing ratings via aggregated anonymous feedback when multiple sources of Information are used Incorporating performance appraisals into a formal goal setting system Offering adequate support and assistance to employees such as professional development opportunities in order to improve their performance Conducting appraisals on a regular basis (at least two times a year) rather than annually. CHARACTERISTICS OF AN EFFECTIVE PERFORMANCE APPRAISAL SYSTEM :           Simple and easy to understand Managers doing the evaluation must perceive that it is in their personal and career interests to conduct accurate appraisals Should ensure employee participation Communicate to the employee how they have performance It should be objectives rather than subjective It should emphasize on perfect and not on personality It should communicate to all concerned people Create an atmosphere of confidence and trust so that both supervisor and employee may discuss matter frankly and offer suggestion Beneficial suggestion for the organization and for the employees Establishment of perfect standard and arrangement of post appraisal interviews PERFPRMANCE APPRAISAL PROCESS Objectives of PA Establish job expectations Design an appraisal program Appraisal performance Performance appraisal Performance Management Achieve appraisal data Use appraisal data for appropriate purpose  Objectives of appraisal The first and foremost step in the appraisal process is to see the objectives of performance appraisal, that is what is to be measured in the process for what it is to be measured and the like.  Establish job expectation The second step in the appraisal process is to establish job expectation. This includes informing the employee what is expected of him or her on the job. Individual should not be expected to begin his job until he understands what is expected of them.  Design appraisal programme Designing an appraisal programme poses several questions which need answer. they are: o Formal v/s informal appraisal o Whose performance is to be assessed? o Who are the raters? o What problems are encountered? o How to solve the problems? o What should be evaluated? o When to evaluate? o What methods of appraisal are to be used? And the like.  Appraise the performance the next step in the appraisal process is to measure the performance. What then is performance? Performance is essentially what an employee does or does not do employee performance common to most jobs include the following elements. o Quantity of output o Quality of output o Timeliness of output o Presence of work o Co-operativeness o Job knowledge o Leadership abilities o Judgment o Supervision o versatility o Health Performance measurement needs to be based on the benchmarks listed above.  Performance management Performance appraisal provides feedback about employee job performance. Getting feedback is not enough. Three more activities need to be undertaken to complete the process, they are: o Performance interview o Archiving performance data o Use of appraisal data LIMITATIONS OF PERFORMANCE APPRAISAL Performance appraisals are subject to a wide variety of in accuracies and biases referred to as “rating error”. These errors occur in the raters observation, judgment and information processing and can seriously affect assessment result, the most common rating errors are:  Leniency or severity/strictness The evaluation has their own value system which acts as a standard for evaluation. Some evaluation may be lenient and will give rating to everyone. On the other hand, an evaluator may be strict and will give low rating to all persons, the tendency of high rating is known as positive leniency error and tendency to give lower rating is called negative leniency error.  Central tendency This occurs when employees are incorrectly rated near the average or middle of the scale. The altitude of rater is to play safe this safe playing attitude stems from certain doubts and anxieties which the raters have while assessing the rates. neither he will rate them as a poor performance nor he will rate them outstanding.  Halo error A halo error takes place when one aspect of an individual‟s performance influence the evaluation of the entire performance of the individual. The appraiser judges a person on the strength of a specific trait and doesn‟t base his inference on his overall performance.  Rater’s effect This includes favoritism, stereotyping and hostility. Excessively high or low scores are given only certain individuals or group based on the rater‟s attitude towards the rate, not on actual outcomes or behavior.  Primacy or regency effect The rater‟s ratings are heavily influenced either by behavior exhibitive the rater during the early stages of the review period (primacy)or by outcome or behavior exhibited by the rate near the end of the review period(renency).  Perpetual set This occurs when the raters assessment is influenced by previously held beliefs.  Performance dimension order Two or more dimensions on a performance instrument followed or closely follow each other and both describe or rotate to a similar quality. The rater raters the dimension accurately and rates the second dimension has been arranged in a significantly different order, the ratings might have been different.  Spillover effect This refers to allowing past performance appraisal rating to unjustifiably influence current ratings. Past rating good or bad, results in similar rating for the current period although the demonstrated behavior does not deserve the rating, good or bad.  Status effect It refers to overrating of employee in higher level job or jobs held in high esteem and under rating employees in lower level job or jobs held in low esteem. CHALLENGES OF PERFORMANCE APPRAISAL  With the increased significance of performance appraisal, challenges confronting the system are mounting. One serious challenge facing the performance appraisal system relates to assessment of self managed terms, popularly called empowered terms, these self managed teams create special challenges for performance appraisals-empowered teams perform without supervisors.         To create a culture of excellence that inspired every employee to improve and lend himself or herself to be assessed. To align organization objective to individuals aspirations To clear growth paths for talented individuals To provide new challenges to rejuvenate careers that have reached the plateau stage To forge a partnership with people for managing their careers To empower employee to make decisions without the fear of failing To embed teamwork in all operational processes Debureaucratise the organization structure for ease of flow of information HOW APPRAISAL MAY BE MADE SUCESSFUL? The rater must be thoroughly well versed in the philosophy and nature of the rating system factors and factor scales must be thoroughly defined, analysed and discussed. The success of an appraisal programme depends upon:  The existence of an atmosphere of confidence and trust so that both supervisors and employee may discuss matters frankly and offer suggestions which may be beneficial for the organization and for an improvement of the employee   The supervisor must very thoroughly evaluate the employee‟s performance so that he is capable of meeting challenges about his ratings of his sub-ordinates The result of performance rather than personality traits should be given due weight suggestions for improvement should be directed towards the objective facts of the job. plans for the future must be developed jointly after consultation with sub-ordinates. The individual as a person should never be criticized      The supervisor should try to analyse the strengths and weaknesses of an employee and advise him on correcting the weakness The appraisal programme should be less time consuming and less costly at the same time, it should bring the maximum benefit. Which particular technique is to be adopted for appraisal should be governed by such factors as the size, financial resources, philosophy and objectives of an organization. The result of the appraisal, particularly when they are negative should be immediately communicated to the employees, so that they may try to improve their performance The post- appraisal interview should be arranged so that employees may be supplied with feedback and the organization may be supplied with feedback and the organization may know the difficulties under which employees work, so that their training needs may be discovered  The standards of performance appraisal can be improved by training of the evaluators. It has been indicated that appraisers who are trained in how to evaluate sub-ordinates tend to be more effective appraisers than those who had not undergone such training  Lastly , many of the problems or hindrances can be minimized if right appraisal tools are chosen Research Design CHAPTER II RESEARCH DESIGN TITLE OF THE STUDY “A STUDY ON EFFECTIVENESS OF PERFORMANCE APPRAISAL OF EMPLOYEE’S OF PSU’S WITH SPECIAL REFERENCE TO BEML LIMITED” INTRODUCTION: Performance appraisal can be understood as the assessment of an individual‟s performance in a systematic way, the performance being measured against factors such as job knowledge, quality of output, initiative, leadership abilities, supervision, dependability, Co-operation, judgment, versatility, health, and the like. The other terms used for Performance appraisal are performance rating, employee assessment, employee performance review, performance appraisal and performance evaluation. STATEMENT OF PROBLEM To check the employee‟s performance and their relation which effects the productivity and efficiency of the organizational objectives. Hence the study is been initiated . OBJECTIVE OF THE STUDY      To study the procedures used in the process of performance appraisal. To know the level of the performance of the employees of BEML Limited. To study the relationship between performance appraisal, promotion and pay. To study the impact and effects of performance appraisal on the motivation and morale of the employees in terms of their beliefs, norms, expectations, life style and work style. To offer recommendations and suggestions to the management if necessary. METHODOLOGY AND RESEARCH DESIGN Survey method has been used in this research study. The methodology here refers to the systematic method used to collect data for the research purpose. Here the sampling is stratified sampling. The data collection was done by using questionnaire. The data analysis and interpretation was done using bar chart and pie chart. SOURCES OF DATA COLLECTION PRIMARY DATA COLLECTION:  Interaction with the management and the employees. Questionnaire SECONDARY DATA COLLECTION:    Websites Journals Magazines Company manuals SAMPLING SIZE:-50 samples LIMITATIONS OF THE STUDY    The study is for an academic purpose only for a particular period. Due to the time constrain some employees were not able fill the questionnaire completely. The division of the organization are spread and the study is confined to BEML Limited. PLAN OF ANALYSIS In this study the plan of analysis has been done by using tools of comparison by using the pie chart, bar graph etc and then conducting analysis of the study made and interpreting the results of the research has been carried out. Data collected has been tabulated, correlated and analyzed The analyzed data has been represented in the form of graphs, charts and diagrams. CHAPTER SCHEME I INTRODUCTION II RESEARCH DESIGN III COMPANY PROFILE IV ANALYSIS AND INTERPRETATION OF DATA V SUMMARY OF CONCLUSION FINDINGS, SUGGESTIONS & BIBLIOGRAPHY & ANNEXURS CHAPTER III COMPANY PROFILE Bharat Earth Movers Limited (BEML) incorporation in May 1964 with its corporate offices at Bangalore and commenced operations from 1st January 1965, the production units of the company are located at Bangalore, Kolar gold field, and Mysore in Karnataka. The company is engaged in the production of rail coaches, rail bus, and Direct current electrical Multipurpose Unit for India railways, heavy duty trucks/its variants, crash fire tenders, heavy recover vehicles, PMS bridges, and earth moving equipment‟s and aggregates for Defense. Other major customers of BEML are Coal India Limited. Natively Lignite Corporation Associated Cement Company, Steel Authority Of India Limited and The National Hydro Electric Thermal Power Corporation. Bharat Earth Movers Limited is a premier ISO 9000 company in India and the second largest manufacture of earth moving equipment in Asia. A three-decade-old multi-location and multiproduct company, BEML has vital application in diverse sectors of economy such as coal, mining, steel, cement, powder, irrigation, construction, and road building, and railway. It has expanded its product range to cover high-quality hydraulics, heavy duty diesel engines, welding robots and undertaking of heavy fabrication jobs. A public sector undertaking, BEML commands 70% market share in domestic earth mover industry. Nearly 40% of its quality has divested to financially institutions and public. BEML has its corporate headquarters and central marketing division at Bangalore. BEML manufactures wide range of products to meet the needs of mining, construction, power, irrigation, fertilizer, cement, steel, and rail sectors. The earth moving equipment includes bulldozers, dump trucks, hydraulic, excavators, wheel loaders, rope shovels, walking draglines, motor graders, and scarpers. BEML has recently introduced road headers and slide discharge loaders for underground mining applications. Railway products include integral rail coaches, electrical multiple units, rail buses, track laying equipment‟s, and overhead equipment inspection cars. BEML manufacture heavy duty trucks and trailers and hydraulic aggregates for transportation sector. The company also manufactures high power diesel engines and heavy duty hydraulic aggregates to meet specific customer requirements. The company plans to diversify into varied activities including underground mining equipment, underground for petro-products, leasing, financial services, and joint ventures abroad. BEML is rated as the first amongst the fastest growing construction equipment in India (construction world-NICMAR SURVEY-2005). It is today leading the infrastructure revolution in the country with successful foray in to hi-tech metro trains. Being a multi-technology, multiunit, and multi-location company, BEML offers high quality products for diverse sectors of the economy such as coal, mining, construction, power, irrigation, fertilizers, cement, steel, road building, Defense, metro and railways. It has come to forefront of heavy engineering industry with a track record of growth and profit in the last for decades. With increase focus on quality, safety and productivity, BEML is evolving new technologies and aiming at value-addition in all its process and products. The company‟s manufacturing facilities are certified under ISO 9001-2000 series. Its strategic alliances with global partners have ensured a continuous flow of state of art technologies and gain international competence. With impetus on market driven R&D, BEML has ruled out several innovative products. The company has established R&D center of excellence for metro technology to match world-class standards with grant received from planning commission, Government of India. BEML‟s nationwide network of sales offices enables buyer with ready access to its wide range of products and services. Its service center, repair shops and part depots provide total equipment care and availability of machines through prompt after sales-service. Today band of products are popular in over 30 countries across the world in Asia, Europe, middle-East and Latin America. The company is in the process of opening overseas offices at Singapore and China BACK GROUND AND INCEPTION OF COMPANY BEML is a PSU under the effective administration of Ministry of Defense (department of Defense supply). The organization was setup in the late 40‟s as part of HAL now known as “HINDUSTAN AERONATICS LIMITED” to manufacture rail coaches. It gradually diversified earth moving equipment in 1964, the company was incorporated in the first year plan when India was very weak economically. The main objective of setting up the organization was to manufacture heavy earth moving equipment. Rail coaches heavy duty trucks, trucks-laying equipment, etc. NATURE OF BUSISINESS CARRIED: BEML is equipped in production equipment for the industries such as construction and mining Defense aviation and the METRO and RAILWAY sector. CONSTRUCTION AND MINING For development in surface mining projects, BEML produces machines such as electric shovels, hydraulic, excavators, bulldozers, wheel loaders, wheel dozer, dump trucks, motor grades, pipelines, and tyre handlers. Besides, giants walking draglines for cost effective operations in the open cost mines are manufactured. BEML has diversified into underground mining with products such as side discharge loader, lad haul dumper, winch winder, randy car, and skip, etc. BEML has an active fleet of machines to take up works related to road construction, infrastructure, development, port handling, tuning boring, and petroleum projects. The company is floating a joint venture soon to take upon contract mining and maintenance of mining equipments. DEFENCE AND CIVIL AVIATION: BEML‟s multi-role vehicle and transport trailers have found total acceptance with arms forces. The company has started manufacturing the entire range of value added TATRA vehicles. Which are robust and suitable for all terrain operations including bridge layer field artillery, tractor, medium/heavy recovery vehicles and pontoon mainstream bridge system, BEML also supplies engineering mine ploughs, armored recovery vehicles, and weapon loading equipment. For the civil aviation sector, BEML offers passenger Aerobridges, crash fire tender and aircraft towing tractor. METRO AND RAILWAY SECTOR: BEML is today geared up for manufactured and supply of hi-tech stainless steel metro to upcoming urban infrastructure projects in various cities. Other products supplied for Indian railways include integral rail coaches, overhead inspection cars, track laying equipment broad gauge rail bus, treasury vans and spoil disposal vans. It also offers electric multiple units for development in suburban services. The company also manufactures heavy duty diesel engines, diesel generator sets, and hydraulic aggregates. BEML has entered into alliance with international partners for several new products with include multi utility armed vehicles, mine laying vehicles, long wall mining system, tunneling equipment, mine protected vehicles, surface miners, etc. COMPANY VISION: The vision is to achieve a turnover of $1.15 billion (Rs. 5000 corers) by 2013-14, which translates in to a compounded growth rate of 12%. The management has infused this vision into 10000 employees and will grow across all three divisions. Mining and construction segment, we see a 15-20% growth rate will be between 8% and 1000%. At that moment two-third of our top line and bottom line is contributed by mining and construction. BEML has earned a modest profit of 100 million in the rail business: they have now achieved a critical mass and hence likely to enhance contribution to the bottom line.       Build total self-reliance in earthmover and related technology. Adopt technology to suit national requirement particularly in vital se tor such as construction, mining, irrigation, railways, transportation, and automation. Update current products for higher performance and reliability. Generate know-why through applied research. Design and develop products in identified technology areas. Set p test facilities of evaluation of performance and reliability of vehicles and system. COMPANY MISSION:  To achieve and retain a dominant position in the manufacture and supply of earthmoving, mining, construction, railway, and Defense equipment by establishing high standards of quality, capability, and reliability.     To pursue state-of-the-art environment friendly technologies as well as develop cost effective and value-added products. To be competitive, responsive, and continuously improve services so as to ensure total customer satisfaction. To grow into global company guided by a keen sense of vision and business ethics as well as to maximize earnings. To conserve energy eliminate and waste through optimum utilization of men, money, materials, and machinery. COMPANY OBJECTIVE       To maintain a dominant position in design, development, manufacture, and marketing of defense, earthmoving, and constructions and rail and metro equipments. To diversify and grow. To provide total engineering solution to its customer. To internationalize operations by enhancing exports. To maintain state-of-art technology for all products. Re-orientation of the business operations to match the present scenario.  Continues building of skills and competencies to bring about executive effectiveness for management succession. QUALITY POLICY: “Quality is the hallmark of excellence” At BEML, a corporate quality policy emphasizing total quality management ensures the quality system adopted companywide to meet stringent standards and requisite performance criteria. A separate quality spearheads the thrust towards total quality. All the manufacturing units in the company are under ISO 9001-2000 certification. BEML equipment works in hospitable terrain under grueling operating conditions. In order to ensure optimum performance of equipment each product is tested in working conditions. In order to ensure optimum performance equipment each product is tested in working condition in the company‟s own track and fields. Vendor assessment and development is a key component of the company‟s strategy for achieving total quality. Experience professional work with vendors to improve directions to the quality improvement activities. “To offer products and services to the satisfaction of customers and strive to upgrade quality continuously” is the quality adopted in BEML. PRODUCT PROFILE: BEML products that is “ Machine that build the nation” find their application in core sector of economy in the country viz., mining, agriculture, energy, irrigation, cement, steel, construction, rail, and road transport apart from Defense. The company has three ranges of product like earth moving equipment‟s, Defense product and railways products. The earth moving equipment‟s include bulldozers, dump trucks, hydraulic excavator, wheel loaders, wheel loaders, wheel dozers, tyre handlers, pipe layers, rope shovels, draglines, motor graders, scrapers, water sprinklers, aircraft towing tractors, and backhoe loader. BEML has recently introduced road headers and side discharge loaders of underground mining application, track laying equipment, inspections cars. BEML manufacture heavy duty trucks and trailers and hydraulics aggregates for transportation sector. apart from this, BEML also radio controls disaster management equipment in case of emergencies. BEML PRODUCTS       Mining machines. Electric shovels. Bulldozers. Wheel dozers. Dump trucks. Motors graders. BEML PRODUCTS         Mining machines. Electric shovels. Bulldozers. Wheel dozers. Dump trucks. Motors graders. Pipe layer and type handler. Giant walking dragline for cost item. DEFENSE EQUIPMENTS       BEML-Tetra T815 vvnc8*8Vehicle. BEML-Tetra T815 VVL8*8 Vehicle. BEML-Tetra T815 VT18*8- Tank Transportation. BEML-Tetra T815 VVNC6*6 High Mobility Vehicle. BEML-Tetra T815 VVNC6*6 Field Artillery Tractor. BEML-Tetra T815 V1 4 *4 High Mobility Vehicle.                PRATHVI missile launcher. OXIDISER carrier. WARDHEAD carrier. FUEL carrier vehicle. MISSILE Transporter. 10T mobile crane. Ammunition Loader. Pontoon Bridge Set. Pontoon Truck. Truck mounted crane. Pavement laying truck. DOLLY. Light recovery vehicle. Armored recovery vehicles. Backhoe loader transporter. RAILWAYS        Passenger coaches. DC electrical multiple units (DC-EMUS) AC electrical multiple units (AC-EMUS) Track laying equipments. Rail bus. Spoil disposal units (SDU) Treasury vans.  Mail rail coaches. DIESEL ENGIES     100-1000 hp engines for contribution and mining equipment. Irrigation pumps. Marine vessel engines. Compressors. ROAD COSNTRUCTIONS EQUIPMENT    Batching and min9ing plans. Vibrating compactors. Pneumatic-tired rollers. DIASTER MANAGEMNT EQUIPMENT   Radio-controls dozers. Hydraulic excavators with demolition attachments ENERGY  Diesel genets-230, 360, 550KVP. INDUSTRIAL AND AUTOMATION   Industrial welding robots. Machine tending robots. AREA OF OPERATION BEML, being a public sector undertaking operates well in the global market also. The company‟s international divisions are involved in large trading as well as counter trade in countries worldwide covering Asia and Middle East beside entering into European through UK, Italy, and Greece. The company commenced it overseas operations in 1969-00 and has exposed earth moving equipment‟s, rail coaches and sapper parts valued at several million US $ to countries all over the world. As a recognized export house, BEML has expanded operations to include exports of engineering goods, defense items commodities, and undertaking of project management and turnkey contracts. Despite the pressure of highly competitive market for heavy construction and mining equipment, BEML‟S export is attributed to good quality equipments and very efficient after sales services. Fully satisfied with the BEML‟s services, customers in several countries have been placing repeat orders for the company‟s equipment‟s. The company is looking at global market for future growth several countries have been identified for making a foray. In keeping with this, the export target for the year 2009-2010 has been fixed at over Rs 500 crores, which are stiff considering the strong foothold of competition in the world market. Exports were made to countries like Syria, Tunisia, South Africa, Afghanistan, Bhutan, Abu Dhabi, Jordan, Bangladesh, and Suriname in Latin America. COMPETITORS OF BEML COMPETITORS OF BEML Railways Integral coach factory permbur, RCF at Karputhala Bulldozers Excavators Dumpers Caterpillars (Hindustan Motors) L&T, Escort, TATA Hindustan Motors, Volvo, TATA, TELCO, Ashok Leyland PRODUCT OF THEIR COLLABORATION: PRODUCT OF COLLABORATION Product 210M Dump Truck 445E Electric Dump Truck Walking Draglines 182m 10cu.m Rope Shovel Heavy Duty Trucks for defense METRO RAILWAY Diesel Engine collaboration KOMATSU Mining System, USA KOMATSU Mining System, USA BUCYRUS International, USA BUCYRUS International, USA TETRA SIPOX ROTEM, SOUTH KOREA KOMATSU, JAPAN BANKERS        SBI. Canara Bank. SBM (State Bank Of Mysore) Punjab National Bank. Bank of India. State Bank of Bikaner & Jaipur. Central Bank of India. INFRASTRUCTURAL FACILITIES: BEML LIMITED Name of the company: Registered Office: BEML LTD BEML Soudha (Bangalore) Corporate Office NO-23/14TH Main S.R Nagar Bangalore-560027 Group: Public Sector Undertaking. Activity of BEML: Date of establishment: Manufacturing of Earth Moving Equipment, rail Couches, and defense automotive vehicle. January, 1965. OTHER COMPLEX KGF COMPLEX (KOLAR GOLD FIELD) Kolar Gold Field, located 100 km from Bangalore, spread over an area of 1850 acres; BEML has established an extensive manufacturing base. A skilled work force of over 7400 turnout state of the art bulldozer, hydraulic excavator, wheel force of over 7500 turnout state of the art bulldozer, hydraulic excavator, wheel loaders, rope shoves, and walking draglines for mining and construction industry Sophisticated CNC machines and latest technology welding equipment have been installed. MYSORE COMPLEX The biggest dump truck factory in India is located at BEML‟S Mysore Complex. This unit is located about 180kms from Bangalore and occupies about 178 acres of land, having a work force of about 2500 employees. AREA OF OPERATION BEML has 3 international offices, 10 regional offices and 15 districts offices and it also have 4 activity center. INTERNATIONAL OFFIC ES” CHINA BEML Ltd Shanghai representative office, Shanghai PC: 200336 MALAYSIA – BEML (MALAYSIA) SNDBHD, Johar Bharu, Malaysia. BRAZIL – BEML Brazil, state of expirito Santo Brazil. GLOBAL OFFICE    MOROCCO CHINA SINGAPORE ASSEMBLY PLANT Brazil GLOBAL PARTS WAREHOUSE MALAYSIA REGIONAL OFFICE           Bilaspur. Chennai. Hyderabad. Kolkata. Mumbai. Nagpur. New Delhi. Ranchi Jabalpur. Singrauli. DISTRICT OFFICE           Ahmadabad. Asansol Bhilai. Bhubaneswar. Chandrapur. Guwahati. Jammu. Madurai. Naively. Pan Jim.  Udaipur. THE COMPANYS SHARES ARE LISTED ON THE FOLLOWING STOCK EXCHANGES:        The Bangalore Stock Exchange Limited, Bangalore BEML. The Bombay Stock Exchange Limited, Mumbai 5006648. The National Stock Exchange of India Limited, Mumbai BEML. IT HAS BAHGGED “National Safety Awards” for many times. Corporate Excellence Award for outstanding performances in 1987-88 among all PSU. Best Production Award for 1989-90 received from vice-resident of India. Armed Forces Slag Award 2004-05 has been confessed on BEML by the Indian Institution Of Industrial Engineering, a pioneer body serving since 1957 for the cause of industrial growth in India.    BEML is among the five PSU‟s gained entry for the nomination of “Best PSU Award 2006.” “Honorary Fellowship Award” for CMD of BEML for his exemplary contribution as CEO of BEML. NIRYAT SHREE GOLD Trophy. We at BEML manufactures of equipment for construction and mining and metro defense are dedicated to protect and conserve the environment by minimizing eh adverse impact of the process, product and services on the environment. OBJECTIVE As part EHS policy we shall continuously strive and are committed to:     Provide health and safe environment to all employees and interested parties. Comply with all applicable legal and regulatory requirements. Conserve natural resources and initiate and achieve energy saving. Minimize process waste, promote recovery, reuse, and recycling of material and develop eco friendly waste disposal system.   Improve to minimize environment health and safety hazards and hazardous process. Train and build awareness among all our employees of EHS issues on a continues basis.  Communicate EHS policy to all employees, stake holder, investors, and other. BOARD OF DIRECTORS Chairman and Managing Director: Sri V.RS. Natarajan. Functional Directors Sri V Mohan, Director (Defense) Shri M. Poongavanam, Director (Mining & Construction) Shri P Dwarakanath, Director (Metro & Rail) Shri M Pitchiah, Director (Finance) Shri M Nellaiappan, Director (HR) OFFICIAL DIRECTOR Shri Satyajeet Ranjan, Jt. Secretary (Exports), Ministry Of Defense Shri P.K. Mishra., Addl, Financial Advisor & Jt. Secretary, Ministry Of Defense (Finance) Independent Directors Shri J.P, Singh, IAS (Retd) Shri M.B.N. Roa Shri J.P., Batra Award    CMD received the 'SCOPE Award for Excellence and Outstanding Contribution to the Public Sector Management - Medium PSE CategoryD' for the year 2006-07 CMD received the 'BEST PSU AWARD' instituted by India's leading B School, Indian Institute of Planning & Management held at Bangalore on 25th March 2009 Southern Region of EEPC India awarded BEML with 'Silver Shield' for Star Performer as a Large Enterprise for its outstanding contribution to Engineering Export held at Trivandrum on 11th February 2009             CDM received the RAKSHA MANTRI‟S award for excellence for best performance in export held at new Delhi on 7th November 2008 CDM received the ROTARIAN AWARD of vocational excellence in their district conference held in Bangalore on 9th February 2008 CDM received the BEST CEO AWARD from Mr.SK Sharma national president, Indian institute of material management (IIMM) on 30th November 2007 at Chandigarh Conferred STAR PERFORMER th AWARD by engineering export promotion council, southern region on 24 November 2007 Award for excellence in technology and innovation from confederation of Indian industries(CII) Rated AAA by ICRA in January 2007 Received GOLDEN PEACOCK AWARD for innovation management from institute of directors on 14th January 2007 Ranked 4th best wealth creator among 21 best wealth creators of India and the 1ST AMONG PSUs(USS 1 in 2002 has appreciated to US$ 62.64 IN 2007)by Dalal street magazine Conferred MINI RATNA CATEGORY-1 status by ministry of defense, govt. of India during august2006 Received ENTERPRISE EXCELLENCE AWARD from Indian institute of industrial engineers during may2006 Received EXCELLENT MOU rating in 2006-2006 AWARD FOR OUTSTANDING PERFORMANCE from engineering exports promotion council (EEPC)    Award for the largest and most profitable construction world, NICMAR 2007 Awarded UDYOG RATNA AWARD(gold trophy) by institute of economics studies, New Delhi, during October 2004 Received NIRYAT SHREE GOLD TROPHY from federation of Indian export organization for its outstanding performance in exports house/Non SSI category for the financial year 2000-01  National award for import substitution for crawler mounted shovels(2 to 2.5 bucket Cu.M.capacity) Products of BEML  Mining and construction  RAIL AND METRO  Defence equipments Analysis And Interpretation Of Data CHAPTER IV ANALYSIS AND INTERPRETATION OF DATA This study was conducted to analyze the performance appraisal system in BEML LTD Bangalore complex. The data has been collected from 50 employees at BEML LTD, through questionnaire, Personal Interview and observation method. After data had been collected, the data has been analyzed in a master tabular form. The analysis of data requires a number of closely related operations such as establishment of categories, the application of these categories to raw data through tabulation and drawing statically inferences. From the master table various summery tables were prepared. The data thus collected is tabulated and interpreted. After analyzing the data, the findings are presented in the form of Bar charts and . The findings have been presented along with the respective tabular column, graphs and interpretation Age group of the respondents SL NO Age group No of respondents Percentage 1 2 22-31 years 32-41 years 2 6 4 12 3 4 42-51 years More then 51 years 21 21 42 42 TOTAL 50 100 Analysis Respondents are of different age group. employees of agree group 50 and above are 42 percent,42 percent belong o 42 to 51 years while those who belong to percent 6.while 2 percent belong to the age group from 22 to 31years Age group of the respondents 45 40 35 30 25 20 15 10 5 0 22-31 YEARS 32-41 YEARS 42-51 YEARS More then 51 years No.of respondents Percentage Interpretation It is found that the majority of the respondents were in the age group of 42 to 51 years and above. This clearly reveals that respondents are seniors and experienced in the organization Performance Appraisal system is needed in the organization. Table no-1 Sl no 1 Particulars Strongly agree Agree Cannot say Disagree Strongly disagree No of respondents 15 33 02 50 percentage 30 66 04 100 2 3 4 5 Total Analysis It is observed that 66 percent of the respondents agree that performance appraisal system is needed in the organization followed by 30 percentage who strongly agree for the same. None of the respondents disagree or strongly disagree. Performance Appraisal system is needed in the organization. Chart no-1 No of respondents 0% 0% 4% 30% Strongly agree agree Cannot say Disagree Strongly disagree 66% Interpretation It is therefore inferred that a majority of the respondents agree that they need performance appraisal system in the organization.2 percent of the respondents do not agree with the statement. Are you aware of Performance Appraisal Table no-2 Sl no 1 particulars Strongly agree Agree Cannot say Disagree Strongly disagree No of respondents 05 42 02 01 50 percentage 10 84 04 02 100 2 3 4 5 Total Analysis The respondents were asked about the awareness of performance appraisal system in the organization.84 percentage of the respondents agree that they are aware of performance appraisal system. None of the respondents strongly disagree for the above statement. Are you aware of Performance Appraisal Chart no -2 Chart Title 90 80 70 60 50 40 30 20 10 0 Strongly agree agree Cannot say Disagree Strongly disagree 10 4 2 0 No of respondents percentage 84 Interpretation: It is therefore inferred that a majority of the respondents agree that they are aware of the performance appraisal system in the organization. 2 percent of the respondents do not agree with the statement. Satisfied with the existing Performance Appraisal system. Table no-3 Sl no 1 particulars Strongly agree Agree Cannot say Disagree Strongly disagree No of respondents 03 33 11 03 50 percentage 06 66 22 06 100 2 3 4 5 Total Analysis As per the above data 66 percent of the respondents agree that they are satisfied with the existing performance appraisal system. None of the respondents strongly disagree. Satisfied with the existing Performance Appraisal system. Chart no -3 No of respondents 0% 6% 22% Strongly agree agree Cannot say 66% Disagree Strongly disagree 6% Interpretation: Satisfaction level of the employees regarding performance appraisal system is important. When asked about their satisfaction majority of the respondents agree with the existing performance appraisal system. 22 percent of the respondents are in dilemma whether to agree or disagree. The key Performance area is identified related to your job and evaluation is done based on your Performance. Table no-4 Sl no 1 particulars Strongly agree Agree Cannot say Disagree Strongly disagree No of respondents 04 38 05 02 1 50 percentage 08 76 10 04 2 100 2 3 4 5 Total Analysis From the above data it is analyzed that 76 percent agree that the key performance area is identified related to your job and evaluation is done based on your performance 8 percent of respondents strongly agree,10 percent were neutral, disagree and strongly disagree 4 percent and 8 percent respectively. The key Performance area is identified related to your job and evaluation is done based on your Performance Chart no -4 2% 4% 10% agree Cannot say Disagree Strongly disagree 76% Interpretation: Performance appraisal is based on certain parameters which include discipline; productivity behavior etc. when asked whether the respondents would like to be appraised based on certain key performance, majority of the respondents agreed with the statement. Performance Appraisal system helps you to understand the overall business goals and plans of the organization. Table no-5 Sl no 1 Particulars Strongly agree Agree Cannot say Disagree Strongly disagree No of respondents 06 35 07 02 50 Percentage 12 70 14 04 100 2 3 4 5 Total Analysis From the above data we can analysis that the 70 percent of respondents agree that performance appraisal system helps you to understand the overall business goals and plans of the organization and 12 percent of the respondents strongly agree, 14 percent were neutral,4 percent disagree. None of the employee strongly disagreed. Performance Appraisal system helps you to understand the overall business goals and plans of the organization. Chart no -5 No of respondents Strongly agree agree Cannot say Disagree Strongly disagree Interpretation: Does Performance appraisal system helps to understand the business goals – This question was put forth for the respondents. Nearly 70 percent of the respondents agreed with the statement. The Appraisal method helps you to identify the factors that affect your Performance. Table no-6 Sl no 1 particulars Strongly agree Agree Cannot say Disagree Strongly disagree No of respondents 05 31 13 01 50 percentage 10 62 26 02 100 2 3 4 5 Total Analysis From the above data we can analyze that the 62 percent respondents agree that the appraisal method helps them to identify the factors that affect their performance.10 percent respondents strongly agree, 26 percent were neutral,2 percent disagreed. None of the respondents strongly disagree. The Appraisal method helps you to identify the factors that affect your Performance. Chart no -6 No of respondents 2% 0% 10% 26% Strongly agree agree Cannot say 62% Disagree Strongly disagree Interpretation: Method of appraisal is important. The employees would like to know the factors which influence the performance, 62 percent of the respondents agreed that appraisal method used help identify the factors which effect the performance. The Appraisal method makes you clear of what is expected from you regarding your Performance. Table no-7 Sl no 1 particulars Strongly agree Agree Cannot say Disagree Strongly disagree No of respondents 05 41 04 50 percentage 10 82 08 100 2 3 4 5 Total Analysis From the above data we can analyze that 82 percent of respondents agree that the appraisal method makes them clear of what is expected from them regarding their performance,10 percent respondents strongly agree,8 percent were neutral. None of the respondents disagree or strongly disagree. The Appraisal method makes you clear of what is expected from you regarding your Performance. Chart no -7 90 80 70 60 50 40 30 20 10 0 Strongly agree agree Cannot say Disagree Strongly disagree No of respondents percentage Interpretation: Different approaches are made with regard to appraisal. These approaches need to clear what is expected from the employees. Nearly 82 percent of the respondents feel that such methods give an indication what is expected from them. You and your Appraiser both have clear understanding on the objective of the Appraisal System. Table no-8 Sl no 1 particulars Strongly agree Agree Cannot say Disagree Strongly disagree No of respondents 05 36 09 50 percentage 10 72 18 100 2 3 4 5 Total Analysis From the above data analyzed that 72 percent of respondents agree that their and there appraiser both have clear understanding of the objectives of the appraisal system,10 percent of respondents strongly agree,18 percent were neutral. None of the respondents disagreed or strongly disagreed. You and your Appraiser both have clear understanding on the objective of the Appraisal System. Chart no -8 No of respondents 0% 10% Strongly agree agree Cannot say Disagree Strongly disagree 72% 18% Interpretation A good understanding between the appraise and appraiser is required. A majority of the respondents says that they have clear understanding about the objective of the appraisal. Appraiser rates your Performance based on the work output. Table no-9 Sl no 1 particulars Strongly agree Agree Cannot say Disagree Strongly disagree No of respondents 05 39 04 02 50 percentage 10 78 08 04 100 2 3 4 5 Total Analysis From the above data we can analyze that 78 percent respondents agree that their appraiser rates their performance based on the work output of the employees,10 percent respondents strongly agree,8 percent were neutral,2 percent disagreed. None of the respondents strongly disagreed. Appraiser rates your Performance based on the work output. Chart no -9 No of respondents 0% 4% 8% 10% Strongly agree agree Cannot say Disagree Strongly disagree 78% Interpretation: Among different parameters for appraisal work output is one important factor. 78percent of the respondents agree that their appraiser rates their performance based on their work output. The Appraisal system helps in open communication between you and your Appraiser through Performance review discussion. Table no-10 Sl no 1 particulars Strongly agree Agree Cannot say Disagree Strongly disagree No of respondents 07 38 04 01 50 percentage 14 76 08 02 100 2 3 4 5 Total Analysis From the above data it is analyzed that 76 percent of respondents agree that the appraisal system helps in open communication between them and their appraiser through performance review discussion, 14 percent of respondents strongly agree, 8 percent were neutral,2 percent disagreed. None of the respondents strongly disagreed. The Appraisal system helps in open communication between you and your Appraiser through Performance review discussion. Chart no -10 No of respondents 0% 8% 2% 14% Strongly agree agree Cannot say Disagree Strongly disagree 76% Interpretation Communication between appraiser and appraise is important. A majority of the respondents agree that the appraiser system helps in open communication The Performance Appraisal is by self ( ) superior.( ) Table no-11 Sl no 1 2 Total Particulars Superior Self No of respondents 35 15 50 Percentage 70 30 100 Analysis From the above data we analyze that 70 percent of the respondents agree that the performance appraisal is done by the superior and rest 30 percent of respondents say that they self appraise their performance The Performance Appraisal is by self ( ) superior.( ) Chart no -11 No of respondents 30% superior self 70% Interpretation: 70 percent of the respondents say performance is done by the supervisor; self appraisal is made by remaining 30 percent. The Performance Appraisal helps to build team work. Table no-12 Sl no 1 Particulars Strongly agree Agree Cannot say Disagree Strongly disagree No of respondents 11 34 03 02 50 Percentage 22 68 06 04 100 2 3 4 5 Total Analysis It is observed that 68 percent of the respondents agree that there performance appraisal helps to built team work,22 percent strongly agree,6 percent were neutral,4 percent disagreed. None of them strongly disagreed. The Performance Appraisal helps to build team work Chart no -12 No of respondents 0% 6% 4% 22% Strongly agree agree Cannot say Disagree 68% Strongly disagree Interpretation: As regard to building team work question was asked connecting team work and performance. A major portion of the respondents agree performance system helps to build team work. The Performance Appraisal is helpful in reducing grievance among the employee. Table no-13 Sl no 1 Particulars Strongly agree Agree Cannot say Disagree Strongly disagree No of respondents 06 32 10 02 50 Percentage 12 64 20 04 100 2 3 4 5 Total Analysis The respondents were asked that does the performance appraisal help in reducing grievance among the employee.64 percent respondents agreed,12 percent strongly agreed, 20 percent were neutral,4 percent disagreed. None of the respondents strongly disagreed. The Performance Appraisal is helpful in reducing grievance among the employee. Chart no -13 No of respondents 0% 4% 20% Strongly agree agree Cannot say Disagree 64% Strongly disagree 12% Interpretation: As high as 64 percent of the respondents feel that performance appraisal system helps in reducing grievances. The Performance Appraisal is helpful for improving personnel skills Table no-14 Sl no 1 particulars Strongly agree Agree Cannot say Disagree Strongly disagree No of respondents 14 32 02 02 50 percentage 28 64 04 04 100 2 3 4 5 Total Analysis From the above data it is analyzed that 64 percent of the respondents agree that the performance appraisal is helpful for improving personnel skills,28 percent respondents strongly agree,4 percent were neutral, 2 percent disagreed, none of the respondents strongly disagreed. The Performance Appraisal is helpful for improving personnel skills Chart no -14 No of respondents 0% 4% 4% 28% Strongly agree agree Cannot say Disagree Strongly disagree 64% Interpretation: Skills both personal and technical are required to perform duties in the organization. A majority of the respondents feel that the appraisal system helpful in improving personal skills. In your opinion, training is helpful in achieving better Performance. Table no-15 Sl no 1 particulars Strongly agree Agree Cannot say Disagree Strongly disagree No of respondents 16 24 09 01 50 percentage 32 48 18 02 100 2 3 4 5 Total Analysis From the above data we can analysis that 48 percent of respondents agree that training is helpful in achieving better performance,32 percent of respondents strongly agree,18 percent were neutral,2 percent disagreed. None of the respondents strongly disagreed. In your opinion, training is helpful in achieving better Performance Chart no -15 50 45 40 35 30 25 20 15 10 5 0 Strongly agree agree Cannot say Disagree Strongly disagree No of respondents percentage Interpretation: Training is essential to discharge the duties effectively . Due to emerging technologies employees are asked to take up different duties, in this regard 48percent of the respondents agree that training is helpful in achieving better performance followed by 32 percent who strongly agree with this statement. The Performance rating are done Periodically. Table no-16 Sl no 1 particulars Strongly agree Agree Cannot say Disagree Strongly disagree No of respondents 02 36 09 03 50 Percentage 04 72 18 06 100 2 3 4 5 Total Analysis From the above table it is absorbed that 72 percent of the respondents agree that the performance rating is done periodically,4 percent of the respondents strongly agree,18 percent were neutral ,6 percent disagreed. None of the respondents disagreed. The Performance rating are done periodically Chart no -16 80 70 60 50 40 30 20 10 0 Strongly agree agree Cannot say Disagree Strongly disagree No of respondents Percentage Interpretation: Appraisal is done periodically. This differs from organization to organization. In BEML the performance appraisal system is carried out periodically as opioned by the respondents. The Performance Appraisal system helps to identify the strength and weakness of the employee. Table no-17 Sl no 1 particulars Strongly agree Agree Cannot say Disagree Strongly disagree No of respondents 05 30 11 04 50 percentage 10 60 22 08 100 2 3 4 5 Total Analysis From the above data we can analysis that 60 percent of the respondents agree that the performance appraisal system helps to identify the strength and weakness of the employee,10 percent respondents strongly agree,22 percent were neutral,8 percent disagreed, none of the respondents strongly disagreed. The Performance Appraisal system helps to identify the strength and weakness of the employee. Chart no-17 60 50 40 30 No of respondents 20 10 0 Strongly agree agree Cannot say percentage Disagree Strongly disagree Interpretation: 60 percent of the respondents agree that performance appraisal system to identify strength and weakness. 22percent of the respondents are not able to say anything on the count. The Performance rating is helpful for the management to provide employee counseling. Table no-18 Sl no 1 particulars Strongly agree Agree Cannot say Disagree Strongly disagree No of respondents 05 35 06 04 50 percentage 10 70 12 08 100 2 3 4 5 Total Analysis From the above table we can observed that the respondents were asked whether performance rating is helpful for the management to provide employee counseling.70 percent of the respondents agreed,10 percent of respondents strongly agreed,12 percent of respondents were neutral,8 percent of respondents disagreed. None of the respondents strongly disagreed. The Performance rating is helpful for the management to provide employee counseling. Chart no-18 70 60 50 40 No of respondents 30 20 10 0 Strongly agree agree Cannot say Disagree Strongly disagree percentage Interpretation Employee counseling is a process where employee‟s difficulties are discussed with the counselor. In this regard the majority of the respondents feel employee counseling is required based on the performance rating. Promotion is purely based on Performance. Table no-19 Sl no 1 particulars Strongly agree Agree Cannot say Disagree Strongly disagree No of respondents 05 30 11 04 50 percentage 10 60 22 08 100 2 3 4 5 Total Analysis From the above data we can analysis that 60 percent of the respondents agree that the promotion is the organization is purely based on performance,10 percent of the respondents strongly agree,22 percent were neutral, 8 percent disagreed. None of the respondents strongly disagreed. Promotion is purely based on Performance. Chart no-19 No of respondents 0% 8% 10% Strongly agree 22% agree Cannot say Disagree Strongly disagree 60% Interpretation Recent trend in the organization is pay for performance; similarly promotion is awarded based on the performance. In Public sector Company the promotion is based on service seniority but nearly 60 percent other respondents feel that the promotion should be truly based on performance. Your superior guide you to improve your Performance. Table no-20 Sl no 1 particulars Strongly agree Agree Cannot say Disagree Strongly disagree No of respondents 11 27 08 04 50 percentage 22 54 16 08 100 2 3 4 5 Total Analysis The respondents were asked whether their superior guide them to improve their performance,54 percent of the respondents agreed,22 percent strongly agreed,16 percent were neutral,8 percent disagreed. None of them strongly disagreed. Your superior guide you to improve your Performance Chart no-20 No of respondents 0% 8% 16% 22% Strongly agree agree Cannot say Disagree 54% Strongly disagree Interpretation Proper guidance is required to improve the performance, 76 percent of the respondents either strongly agree or agree, guidance by the supervisor is essential for better performance. Performance Appraisal helps in achieving the desired target of the organization. Table no-21 Sl no 1 Particulars Strongly agree Agree Cannot say Disagree Strongly disagree No of respondents 12 35 02 01 50 percentage 24 70 04 02 100 2 3 4 5 Total Analysis From the above data it is analyzed that 70 percent of respondents agree that performance appraisal helps in achieving the desired target of the organization,24 percent of respondents strongly agree,4 percent were neutral,2 percent disagreed. None of the respondents strongly disagreed. Performance Appraisal helps in achieving the desired target of the organization. Chart no-21 No of respondents 2% 4% 0% 24% Strongly agree agree Cannot say 70% Disagree Strongly disagree Interpretation Almost all the organization are striving hard to achieve the desired target. when asked about the opinion of the respondent regarding the above statement as high as 94 percent agree or strongly agree with the above statement. Performance Appraisal increases employee motivation. Table no-22 Sl no 1 particulars Strongly agree Agree Cannot say Disagree Strongly disagree No of respondents 12 31 06 01 50 Percentage 24 62 12 02 100 2 3 4 5 Total Analysis It is observed from the above table that 62 percent of the respondents agree that the performance appraisal increases employees motivation,24 percent of respondents strongly agree,12 percent respondents were neutral, 2 percent disagreed. None of the respondents disagreed. Performance Appraisal increases employee motivation Chart no-22 70 60 50 40 No of respondents 30 20 10 0 Strongly agree agree Cannot say Disagree Strongly disagree percentage Interpretation Motivation is a factor it promotes interest of the employees by periodical performance appraisal employees may increase 86 percent of the respondents are of the opinion that performance appraisal increases employee motivation. Superior spends enough time to Performance review discussion. Table no -23 Sl no 1 particulars Strongly agree Agree Cannot say Disagree Strongly disagree No of respondents 04 27 07 11 01 50 Percentage 08 54 14 22 02 100 2 3 4 5 Total Analysis From the above data we analyze that 54 percent of the respondents agreed that superiors spend enough time to performance review discussion,8 percent of respondents strongly agree,14 percent were neutral,22 percent disagreed. 2 percent strongly disagreed. Superior spends enough time to Performance review discussion. Chart no-23 No of respondents 2% 8% 22% Strongly agree agree Cannot say 14% 54% Disagree Strongly disagree Interpretation Performance review discussion is carried out in most of the organization, superior who is the appraiser has to spend some times with the appraise for effective performance appraisal. Although 62 percent of the respondents either agree or strongly agree, 22 percent disagree. This clearly indicates that superiors are not spending enough time with the appraise. The HRD makes use of the Appraisal data for taking corrective decisions in over all organizational development and individual development. Table no-24 Sl no 1 particulars Strongly agree Agree Cannot say Disagree Strongly disagree No of respondents 04 27 07 11 01 50 Percentage 08 54 14 22 02 100 2 3 4 5 Total Analysis From the above table we can analysis that 54 percent of respondents agree that the HRD makes use of the appraisal data for taking corrective decisions in overall organizational development and individual development,8 percent of respondents strongly agree,14 percent were neutral, 22 percent disagreed, 2 percent strongly disagreed. The HRD makes use of the Appraisal data for taking corrective decisions in over all organizational development and individual development Chart no-24 No of respondents 2% 22% 8% Strongly agree agree 14% 54% Cannot say Disagree Strongly disagree Interpretation The success of the organization depends on the person one of the factor required after appraisal the data is used for corrective action in organization development and who individual development, nearly 62 percent agree with the above statement while 24 percent either disagree or strongly disagree. Findings & CHAPTER V FINDINGS                based on certain key performance, Performance appraisal system helps to understand the business goals – This question was put forth for the respondents. Nearly 70 percent of the respondents agree. Nearly 82 percent of the respondents feel that the appraisal method makes them clear of what is expected from them regarding their performance this methods 72 percent of the respondents says that they have clear understanding about the objective of the appraisal. 78percent of the respondents agree that their appraiser rates their performance based on their work output. A majority of the respondents agree that the appraiser system helps in open communication. 70 percent of the respondents say performance is done by the supervisor; self appraisal is made by remaining 30 percent. A major portion of the respondents agree performance system helps to build team work. As high as 64 percent of the respondents feel that performance appraisal system helps in reducing grievances A majority of the respondents feel that the appraisal system helpful in improving personal skills. Majority of the respondents are between the age group of 40-50 and above 50 years, from this we can find out that most of the respondents are experienced. Out of 50 respondents, majority of them said that performance appraisal system in needed in the organization. 84 percent of respondents in BEML are aware of performance appraisal Satisfaction level of the employees regarding performance appraisal system is important. When asked about their satisfaction majority of the respondents agree that they are satisfied.  Due to emerging technologies employees are asked to take up different duties, in this regard 48 percent of the respondents agree that training is helpful in achieving better performance followed by 32 percent who strongly agree with this statement.          In BEML 72 percent of respondents agree that the performance appraisal system is carried out periodically. Nearly 60 percent of the respondents agree that performance appraisal system to identify strength and weakness Employee counseling is a process where employee‟s difficulties are discussed with the counselor with regards to this 70 percent of the respondents agree In Public sector Company the promotion is based on service seniority but nearly 60 percent other respondents feel that the promotion should be truly based on performance. 76 percent of the respondents either strongly agree or agree that, guidance by the supervisor is essential for better performance Almost 70 percent of the respondents agree in the organization that they are striving hard to achieve the desired target Motivation is a factor that promotes interest of the employees by periodical performance appraisal employees. 86 percent of the respondents agree with it As most of the respondents disagree that superiors are not spending enough time with the appraise. 54 percent of the respondents agree that The HRD makes use of the appraisal data for taking corrective decisions in over all organizational development and individual development SUGGESTIONS         It is suggested that company can adopt 360 degree appraisal method. With having 360 degree appraisal in the company the employee‟s efficiency and overall efficiency can be improved. There should have an option for Peer appraisal in the company. As many of the employees are in between the age of 40-50 and above younger generations should be recruited as they are more energetic. Proper upgradation of performance related activities are to increased every year. Promotions are usually given on the basis of seniority, it is suggested it should be based on their performance and ability. Personality development programmers can be conducted so as to improve the employee‟s performance towards reaching the objectives. With the proper implementation of appraisal method in the company the employee‟s are initiated to take leadership in company‟s activities which intern the soft skills of the employee‟s are developed     Motivational training can provided to uplift the efficiency level of the employee Proper appraisal method can lead the company towards reaching its goals and objectives and hence increase in productivity. A periodical review of supervisory appraisal system can be effected for promotion and training Informal counseling can also be applied for any short coming of the appreisee. CONCLUSION The fate of the organization depends on the employees. The employees are a great assets of the organization. One of the way in which effective and efficient persons are selected is through performance appraisal. Every organization needs to concentrate more on this performance appraisal. There should be no room for partiality or favoritism as far as performance appraisal is concerned. The higher authorities must keep an eye on the performance appraisal and make changes according to the changing circumstances Performance appraisal is one of the significant tools of the modern personnel management, which yields high return when it is done in a systematic and just manner, with minimum error. Many of the function of personnel management like promotion, transfer, demotion, increments, training and development are performed having performance appraisal as the basic foundation. Performance appraisal forms as an important application in the area of motivation, good mechanism superior subordinate relationship and an instrument to direct employees abilities to overall organizational objectives In BEML less care and time is given for performance appraisal. The approach to performance appraisal as a routine affair which has to be shifted to purposive, developmental exercise. Only then performance appraisal will have greater meaning. This study helped me to gain practical exposure on my topic that is effectiveness of performance appraisal of employee‟s. which is one of the objectives of the study. The other objectives to get the opinion of the employees on the variable aspects of the present performance appraisal system in the company has been met with the kind of co-operation of respectable respondents. For performances appraisal to be effective, proper motivation through all the possible ways including training and development is necessary. Bibliography BIBLIGRAPHY 1) Books referred  ASWATHAPPA “Human Resource Management” 5th Edition Tata McGraw Hill Publishing Company Limited, 2007  APPANNAIAH REDDY,APARNA RAO “Human Resource Management” 2nd Revised Edition Himalaya Publishing House, 2007  Dr K.Ramachandra, Dr B.Chandrashekar, S.Shivakumar “Business Research Methods” 1st Edition Himalaya Publishing House,2006  P.Subba Roa “Human Resource Management” 2nd Revised Edition Himalaya Publishing House,Mumbai  P.Subba Roa Personal management and HRD Himalaya Publishing House  Tapomoy Deb Performance appraisal and management 2) Journals     House journals of BEML Limited 3) Websites www.beml.com www.google.com www.performance appraisal.com Annexure Annexure Questionnaire on performance appraisal Dear Sir/Madam Employee information Please tick whichever is applicable NAME: AGE: 22-31 years ( 32-41 years ( ) ) 42-51 years ( ) More than 51 years( ) GENDER: Male ( Female ( ) ) 1. Performance Appraisal system is needed in the organization. a. Strongly agree ( d. Disagree ( ) ) b. Agree ( ) c. Cannot say ( ( ) ) e. Strongly disagree 2. Are you aware of performance appraisal. a. Strongly agree ( d. Disagree ( ) ) b. Agree ( ) c. Cannot say ( ( ) ) e. Strongly disagree 3. Satisfied with the existing performance appraisal system. a. Strongly agree ( d. Disagree ( ) ) b. Agree ( ) c. Cannot say ( ( ) ) e. Strongly disagree 4. The key Performance area is identified related to your job and evaluation is done based on your performance. a. Strongly agree ( d. Disagree ( ) ) b. Agree ( ) c. Cannot say ( ( ) ) e. Strongly disagree 5. Performance Appraisal system helps you to understand the overall business goals and plans of the organization. a. Strongly agree ( d. Disagree ( ) ) b. Agree ( ) c. Cannot say ( ( ) ) e. Strongly disagree 6. The appraisal method helps you to identify the factors that affect your performance. a. Strongly agree ( d. Disagree ( ) ) b. Agree ( ) c. Cannot say ( ( ) ) e. Strongly disagree 7. The appraisal method makes you clear of what is expected from you regarding your performance. a. Strongly agree ( d. Disagree ( ) ) b. Agree ( ) c. Cannot say ( ( ) ) e. Strongly disagree 8. You and your appraiser both have clear understanding on the objective of the appraisal system. a. Strongly agree ( d. Disagree ( ) ) b. Agree ( ) c. Cannot say ( ( ) ) e. Strongly disagree 9. Appraiser rates your performance based on the work output. a. Strongly agree ( d. Disagree ( ) ) b. Agree ( ) c. Cannot say ( ( ) ) e. Strongly disagree 10. The appraisal system helps in open communication between you and your appraiser through performance review discussion. a. Strongly agree ( d. Disagree ( ) ) b. Agree ( ) c. Cannot say ( ( ) ) e. Strongly disagree 11. The performance appraisal system provides scope for reflection of your personality factor and attributes requirement for your job performance. a. Strongly agree ( d. Disagree ( ) ) b. Agree ( ) c. Cannot say ( ( ) ) e. Strongly disagree 12. The performance appraisal is by self ( ) superior.( ) a. Strongly agree ( d. Disagree ( ) ) b. Agree ( ) c. Cannot say ( ( ) ) e. Strongly disagree 13. The performance appraisal helps to build team work. a. Strongly agree ( d. Disagree ( ) ) b. Agree ( ) c. Cannot say ( ( ) ) e. Strongly disagree 14. The performance appraisal is helpful in reducing grievance among the employee. a. Strongly agree ( d. Disagree ( ) ) b. Agree ( ) c. Cannot say ( ( ) ) e. Strongly disagree 15. The performance appraisal is helpful for improving personnel skills,. a. Strongly agree ( d. Disagree ( ) ) b. Agree ( ) c. Cannot say ( ( ) ) e. Strongly disagree 16. In your opinion, training is helpful in achieving better performance. a. Strongly agree ( d. Disagree ( ) ) b. Agree ( ) c. Cannot say ( ( ) ) e. Strongly disagree 17. The performance rating are done periodically. a. Strongly agree ( d. Disagree ( ) ) b. Agree ( ) c. Cannot say ( ( ) ) e. Strongly disagree 18. The performance appraisal system helps to identify the strength and weakness of the employee. a. Strongly agree ( d. Disagree ( ) ) b. Agree ( ) c. Cannot say ( ( ) ) e. Strongly disagree 19. The performance rating is helpful for the management to provide employee counseling.] a. Strongly agree ( d. Disagree ( ) ) b. Agree ( ) c. Cannot say ( ( ) ) e. Strongly disagree 20. Promotion is purely based on performance . a. Strongly agree ( d. Disagree ( ) ) b. Agree ( ) c. Cannot say ( ( ) ) e. Strongly disagree 21. Your superior guide you to improve your performance. a. Strongly agree ( d. Disagree ( ) ) b. Agree ( ) c. Cannot say ( ( ) ) e. Strongly disagree 22. Performance appraisal helps in achieving the desired target of the organization. a. Strongly agree ( d. Disagree ( ) ) b. Agree ( ) c. Cannot say ( ( ) ) e. Strongly disagree 23 Performance appraisal increases employee motivation. a. Strongly agree ( d. Disagree ( ) ) b. Agree ( ) c. Cannot say ( ( ) ) e. Strongly disagree 24. Superior spend enough time to performance review discussion. a. Strongly agree ( d. Disagree ( ) ) b. Agree ( ) c. Cannot say ( ( ) ) e. Strongly disagree 25. The HRD makes use of the appraisal data for taking corrective decisions in over all organizational development and individual development. a. Strongly agree ( d. Disagree ( ) ) b. Agree ( ) c. Cannot say ( ( ) ) e. Strongly disagree