A STUDY ON THE PERFORMANCE APPRAISAL OF

EMPLOYEES AT CENTRAL COALFIELDS LIMITED IN B & K

AREA

A Project Submitted in partial fulfillment of the requirements for the

award of the Degree of

BACHELOR OF BUSINESS ADMINISTRATION

BY

SAVI SUMAN

(BBA/4549/16)

DEPARTMENT OF MANAGEMENT

BIRLA INSTITUTE OF TECHNOLOGY

MESRA-835215, RANCHI- NOIDA CAMPUS

2018

1
 DECLARATION CERTIFICATE

This is to certify that the work presented in the project entitled “A STUDY
ON THE PERFORMANCE APPRAISAL OF EMPLOYEES AT CCL.” in
partial fulfillment of the requirement for the award of Degree of Bachelor of
Business Administration of Birla Institute of Technology, Mesra, Ranchi is an
authentic work carried out under my supervision and guidance.

To the best of my knowledge, the content of this project does not form a basis
for the award of any previous Degree to anyone else.

Date: (Dr. Vandana Sharma)

Department of management

Birla Institute of Technology Mesra, Ranchi-Noida Campus

Head

Dept. of Management

Birla Institute of Technology

Mesra, Ranchi- 835215-Noida Campus

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 CERTIFICATE OF APPROVAL

The foregoing project entitled “A STUDY ON THE PERFORMANCE APPRAISAL OF

EMPLOYEES AT CENTRAL COALFIELDS LIMITED AT B & K AREA”
is hereby approved as a creditable study of research topic and has been presented in
satisfactory manner to warrant its acceptance as prerequisite to the degree for which it
has been submitted.

It is understood that by this approval, the undersigned do not necessarily

endorse any conclusion drawn or opinion expressed therein but approve the
project for the purpose for which it is submitted.

(Internal Examiner) (External Examiner)

(Director)

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 ACKNOWLEDGEMENT

I am extremely grateful to our director Dr. Munish Makkad to provide necessary and
essential facilities to complete this project report.

I express a deep sense of gratitude to my mentor Mrs. Preeti Bajaj, for her
encouragement, support and guidance to complete this project work successfully.

Finally, I express my thanks and deep sense of gratitude to my parents and friends for
giving timely advice in all the ways and in all aspects for doing this project.

Savi Suman

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 ABSTRACT

“A CASE STUDY ON THE PERFORMANCE APPRAISAL OF EMPLOYEES AT

CCL”

A study was done on the performance management process and various factor
involved in it. Both primary and secondary sources were used to collect data.

The primary data is collected from the employees of CCL through a well-constructed
questionnaire. The secondary data was collected from journals, magazines, articles,
various sites and company records.

From the study it was found that the employees are satisfied with their present process.

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 CONTENTS
1) COMPANY PROFILE
(1.1) Details the company
(1.2) Nature of the organisation
(1.3) Companies vision & mission
(1.4) Product range of CCL
(1.5) Size of the organisation
(1.6) Organisation structure of CCL
(1.7) Industry analysis
(1.8) History of CCL

2) LITERATURE REVIEW
(2.1) Conceptual framework of the study
(2.2) Applicability of concept in CCL

3) PROBLEM STATEMENT & OBJECTIVES OF THE STUDY

(3.1) Significance/ rationale of the study
(3.2) Managerial usefulness of the study
(3.3) Problem statement & objectives of the study
(3.4) Scope of the study

4) RESEARCH METHODOLOGY
(4.1) Research design
(4.2) Census survey
(4.3) Limitations of the study

5) ANALYSIS & INTERPRETATION OF THE STUDY

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6) FINDINGS, CONCLUSIONS & RECOMMENDATIONS

(6.1) Findings of the study

(6.2) conclusion
(6.3) recommendations

BIBLIOGRAPHY

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 CHAPTER -1

COMPANY PROFILE

(1.1) DETAILS OF THE COMPANY

India is currently among the top three fastest growing economies of the world. As a natural
corollary India's energy needs too are fast expanding with its increased industrialization and
capacity addition in Power generation. This is where 'Coal' steps in. In India coal is the critical
input for major infrastructure industries like Power, Steel and Cement.  Coal is the most
dominant energy source in India's energy scenario.  Coal meets around 52% of primary
commercial energy needs in India against 29% the world over.  Around 66% of India's power
generation is coal based.  India is the 3rd largest coal producing country in the world after China
and USA.

Coal India Limited at a glance

Coal India Limited (CIL) as an organized state owned coal mining corporate came
into being in November 1975 with the government taking over private coal mines.
With a modest production of 79 Million Tonnes (MTs) at the year of its inception
CIL today is the single largest coal producer in the world. Operating through 81
mining areas CIL is an apex body with 7 wholly owned coal producing subsidiaries
and 1 mine planning and Consultancy Company spread over 8 provincial states of
India. CIL also fully owns a mining company in Mozambique christened as 'Coal
India Africana Limited'. CIL also manages 200 other establishments like workshops,
hospitals etc. Further, it also owns 26 technical & management training institutes
and 102 Vocational Training Institutes Centers. Indian Institute of Coal
Management (IICM) as a state-of-the-art Management Training 'Centre of
Excellence' - the largest Corporate Training Institute in India - operates under CIL
and conducts multi-disciplinary management development programs. CIL having
fulfilled the financial and other prerequisites was granted the Maharatna recognition
in April 2011. It is a privileged status conferred by Government of India to select
state owned enterprises in order to empower them to expand their operations and
emerge as global giants. So far, the select club has only five members out of 217
Central Public Sector Enterprises in the country.

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 COAL AREAS OF CCL

1. BARKASAYAL
2.ARGADA
3.NORTH KARANPUARA
4.RAJHARA
5.PIPARWAR
6.RAJRAPPA
7.KUJU
8.HAZARIBAG
9.BOKARO & KARGALI
10.DHORI
11.KATHARA
12. KATHARA

(1.2) NATURE AND SCOPE OF THE COMPANY

 To optimize generation of internal resources by improving productivity, preventing wastage and

to mobilize adequate external resources for meeting investment needs.
 To maintain high standards of safety for accident free coal mining through safe mining practices
and continuous safety audit and risk assessment.
 To conserve environment through of Committed Plan for reclamation and plantation.
 To maintain the quality of ambient air and water within the prescribed norms.
 To introduce mass production technology viz. continuous miners etc. for enhancing underground
production of quality coal.
 To operate mega opencast projects using high capacity equipment with higher availability and
utilization secured through long term Maintenance And Repair Contract(MARC).
 To beneficiate coal on a substantially larger scale by adding new capacities and supplying quality
coal as per customer's choice.
 To create an enabling environment for full realization of employees’ potential through mindset
change, customized HRD programmes and synergic teams.
 To create an enabling environment for full realization of employee’s potential through mindset
change, customized HRD programmes and synergic teams.
 To provide adequate number of skilled manpower to run the operations and impart technical and
managerial training for upgradation of skill.
 To improve work life balance by better health care, quality life in townships and excellent
educational facilities.

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 Core Value statement: (4Cs)

 Customer Care
 Concern for Environment & Safety
 Care for employees
 Cost consciousness

(1.3) Mission and vision of CCL:

Mission: To produce and market the planned quantity of coal and coal products efficiently and
economically in an eco-friendly manner with due regard to safety, conservation and quality.

Vision: To emerge as a global player in the primary energy sector committed to provide energy
security to the country by attaining environmentally & socially sustainable growth through best
practices from mine to market.

(1.4) Product range of the company includes:

COKING COAL :
These coals, when heated in the absence of air, form coherent beads, free from volatiles, with
strong and porous mass, called coke.
 These have coking properties
 Mainly used in steel making and metallurgical industries
 Also used for hard coke manufacturing

SEMI COKING COAL :

These coals, when heated in the absence of air, form coherent beads not strong enough to be directly
fed into the blast furnace. Such coals are blended with coking coal in adequate proportion to make
coke.
 These have comparatively less coking properties than coking coal
 Mainly used as blend-able coal in steel making, merchant coke manufacturing and other
metallurgical industries

NON-COKING COAL :
These are coals without coking properties.
 Mainly used as thermal grade coal for power generation
 Also used for cement, fertilizer, glass, ceramic, paper, chemical and brick manufacturing, and
for other heating purposes

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 WASHED AND BENEFICIATED COAL:

These coals have undergone the process of coal washing or coal beneficiation, resulting in value
addition of coal due to reduction in ash percentage.
 Used in manufacturing of hard coke for steel making
 Beneficiated and washed non-coking coal is used mainly for power generation
 Beneficiated non-coking coal is used by cement, sponge iron and other industrial plants

MIDDLINGS :

Middlings are by-products of the three stage coal washing / beneficiation process, as a fraction of
feed raw coal.
 Used for power generation
 Also used by domestic fuel plants, brick manufacturing units, cement plants, industrial plants,
etc.
REJECTS :

Rejects are the products of coal beneficiation process after separation of cleans and / or middlings,
as a fraction of feed raw coal.
 Used for Fluidized Bed Combustion (FBC) Boilers for power generation, road repairs, briquette
(domestic fuel) making, land filling, etc.

CIL COKE / LTC COKE :

CIL Coke / LTC Coke is a smokeless, environment friendly product of the Dankuni Coal Complex,
obtained through low temperature carbonisation.
 Used in furnaces and kilns of industrial units
 Also used as domestic fuel by halwais, hotels, etc.

COAL FINES / COKE FINES :

These are the screened fractions of feed raw coal and LTC coke / CIL Coke respectively, obtained
from the Dankuni Coal Complex and other coke oven plants.
 Used in industrial furnaces as well as for domestic purposes
TAR / HEAVY OIL / LIGHT OIL / SOFT PITCH :

These are products from Dankuni Coal Complex using low temperature carbonisation of non-coking
coal in vertical retorts.
 Used in furnaces and boilers of industrial plants as well as power houses, oil, dye,
pharmaceutical industries, etc.

1.5) Size of the oraganisation :

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 CATEGORY B & K AREA TOTAL
OFFICER 159 2414
M RATED 999 9563
D RATED 3089 26829
P RATED 20 1254

1.6) Organizational structure of the organization:

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 FIGURE 1.2 Organizational structure

SOURCE: Internet

1.7.2)

Industrial analysis:
It has been conferred the 'Fastest Growing Award' in the India Today PSU Awards event held in
Delhi on 14 December 2015. Coal India Limited (CIL) the Maharatna coal mining CPSU bagged
the coveted 'Rashtriya Khel Protsahan Puruskar 2015' award in recognition of its contribution in
the field of 'encouragement to sports through Corporate Social Responsibility'. CIL bags
1st Prize in the filed of Official Language Implementation Policy.

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 Major competitors:
• 20 microns ltd.
• ASI industries ltd.
• Deccan gold mines ltd.
• Auroma ltd.

1.8) History (CCL)

Coal India Limited (CIL) the state owned coal mining corporate came into being in
November 1975. With a modest production of 79 Million Tonnes (MTs) at the year of its
inception CIL today is the single largest coal producer in the world. Operating through 82
mining areas CIL is an apex body with 7 wholly owned coal producing subsidiaries and 1 mine
planning and consultancy company spread over 8 provincial states of India. CIL also manages
200 other establishments like workshops, hospitals etc. Further, it also owns 26 technical &
management training institutes and 102 Vocational Training Institutes Centres. Indian Institute of
Coal Management (IICM) as a state-of-the-art Management Training ‘Centre of Excellence’ –
the largest Corporate Training Institute in India - operates under CIL and conducts multi-
disciplinary management development programmes.
CIL is a Maharatna company - a privileged status conferred by Government of India to select
state owned enterprises in order to empower them to expand their operations and emerge as
global giants. The select club has only few members out of more than Central Public Sector
Enterprises in the country.

History and Formation of Coal India Limited

With dawn of the Indian independence a greater need for coal production was felt in the First Five
Year Plan. In 1951 the Working Party for the coal Industry was set up which included
representatives of coal industry, labour unions and government which suggested the amalgamation
of small and fragmented producing units. Thus the idea for a nationalized unified coal sector was
born. Integrated overall planning in coal mining is a post-independence phenomenon. National
Coal Development Corporation was formed with 11 collieries with the task of exploring new
coalfields and expediting development of new coal mines.

Factors which led up to Nationalization of Coal Industry in India

Nationalization of coal industry in India in the early seventies was a fall out of two related events.
In the first instance it was the oil price shock, which led the country to take up a close scrutiny of

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its energy options. A Fuel Policy Committee set up for this purpose identified coal as the primary
source of commercial energy. Secondly, the much needed investment needed for growth of this
sector was not forthcoming with coal mining largely in the hands of private sector. The objectives
of Nationalization as conceived by late Mohan Kumaramangalam were; Conservation of the
scarce coal resource, particularly coking coal, of the country by
 Halting wasteful, selective and slaughter mining.
 Planned development of available coal resources.
 Improvement in safety standards.
 Ensuring adequate investment for optimal utilization consistent with growth needs.
 Improving the quality of life of the work force.
 Moreover the coal mining which hitherto was with private miners suffered with their lack
of interest in scientific methods, unhealthy mining practices etc. The living conditions
of miners under private owners were sub-standard

Formation of Coal India Limited

With the Government's national energy policy the near total national control of coal mines
in India took place in two stages in 1970s. The Coking Coal Mines (Emergency
Provisions) Act 1971 was promulgated by Government on 16 October 1971 under which
except the captive mines of IISCO, TISCO, and DVC, the Government of India took over
the management of all 226 coking coal mines and nationalized them on 1 May, 1972.
Bharat Coking Coal Limited was thus born. Further by promulgation of Coal Mines
(Taking over of Management) Ordinance 1973 on 31 January 1973 the Central
Government took over the management of all 711 non-coking coal mines. In the next phase
of nationalization these mines were nationalized with effect from 1 May 1973 and a public
sector company named Coal Mines Authority Limited (CMAL) was formed to manage
these non-coking mines.

A formal holding company in the form of Coal India Limited was formed in November
1975 to manage both the companies.

Maharatna Status

Coal India Limited was granted the 'Maharatna' status on 11 April, 2011 by the Government of
India thus becoming only the 5th PSU in the country, of a total of 215 Central Public Sector
Enterprises (CPSEs), to have been conferred with this status. Government of India has introduced
the Maharatna scheme in February 2010 for Central Public Sector Enterprises, in order to
empower the mega CPSEs to expand their operations and emerge as global giants. So far, the select
club has only five members. The objective of Maharatna is to delegate enhanced powers to the
Boards of the identified large Navratna CPSEs, fulfilling the specified criteria, to facilitate
expansion of their operations both in domestic as well as global markets.

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 CHAPTER-2

THEORITICAL BACKGROUND

(2.1) Conceptual framework

(2.1.1) Introduction to performance appraisal

Performance Appraisal is the systematic evaluation of the performance of employees and to
understand the abilities of a person for further growth and development. According to M. N.
Rudrabasavaraj performance appraisal is variously known as employee evaluation, employee
efficiency rating, performance rating, merit rating, employee development program, development
report, personal record, employee service rating, personnel rating, etc. and do mean the same.
According to Rudrabasavaraj “An employee performance Appraisal is a systematic, orderly and
objective measure of evaluating the present and potential usefulness of the employees to the
organization in the west and a few in our country as a means and helping supervisors to evaluate
the work of each employee.” Performance appraisal is generally done in systematic ways which
are as follows:
i) The supervisors measure the pay of employees and compare it with targets and plans.
ii) The supervisor analyses the factors behind work performances of employees.
iii) The employers are in position to guide the employees for a better performance.

2) An annual review of an employee’s overall contributions to the company by his/her manager.

Performance appraisals, also called annual reviews, evaluate an employee’s skills, achievements
and growth, or lack thereof. According to Udai Pareek and T.V. Rao performance appraisal
process is “The system approach consisted of asking the individual, teams, their superiors and
organization to define performance (Identify Key Performance Area) plan performance (set
targets), review performance (performance coaching), identify development needs, assign
performance ratings, moderate ratings, debate and links or delink with rewards”. Companies

16
 use performance appraisals to give employees big-picture feedback on their work and to justify
pay increases and bonuses, as well as termination decisions.

History of performance appraisal

The roots of performance appraisal was seen in 20th century which can be traced to Taylor’s
pioneering Time and Motion studies. In a border sense, the practice of appraisal is very ancient
art, in the scale of being a historical process, appraisal claims to be world’s second oldest
profession.
Dulewicz (1989) said about performance appraisal is “..a basic human tendency to make
judgements about those one is working with, as well as about oneself.”

Technical work in the early 1900s was usually performed by skilled craftsmen’s. In early 1911 a
man named Frederick Winslow Taylor who was an American Mechanical Engineer summed up
few logical facts in his book “The Principle of scientific management”. Taylor is known for his
remarkable contribution towards management. In mid-20th century tailor came with many facts
which would help in improving industrial efficiency.
The study of Scientific Management was further studied by Frank Bunker Gilbreth who was a
management Engineer, helped managers to identify the facts required to accomplish work. The
techniques were then build up easily understandable work wide, this helped managers to optimize
the tasks performed. The strategies allowed managers to simplify the work so that workers could
be trained and evaluated on performing short tasks in a consistent manner, without having to
produce the whole product. By providing training to new employees so they could accomplish
short, simple tasks or functions, management could hire unskilled personnel to do the work.
Earlier performance appraisal system didn’t take moral and motivation into confederation. Now a
days Modern Companies use employee evaluation activities to identify training and development
needs.

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 LITERATURE REVIEW
Performance appraisal means to evaluate the performance of employees that they are performing
their jobs up to the standard of the organizations or not. To evaluate the performance of employees
it is very important to establish a proper performance appraisal system in the organization and to
give the training to the managers of the organization to appraise the performance of employees
correctly. This is a broad topic for research and many researchers have done their researches on
performance appraisal to improve the performance appraisal system of organization. In some
organizations management has implemented poor system of appraisal in these articles authors
have discussed that the have found the negative attitude of employees towards performance
appraisal. The main purpose of this project was to explore the appraisal system in work place and
identifying the importance of appraise and appraiser role to form a positive and effective system.
In these articles they have worked on to give the knowledge to healthcare professionals about
difficulties of implanting an appraisal system, including the lack of guidelines on skills and
knowledge required. Researchers have used DEA data envelope analysis as a fair evaluating and
sorting tool to support appraisal system. This study supports the ideas that rating formats need
reexamination with a focus on computer based models as an alternative to traditional rating
methods. Another method has already been used (AHP) analytic hierarchy process to evaluate the
performance of employees based on the criteria: . Quantity/quality of the work,
planning/organization, initiative/commitment, teamwork/cooperation, communication and external
factors. All these criteria have been divided into three sub criteria to evaluate the employees.

On performance appraisal researchers have done work on different areas but there is no work has
been done on that which performance appraisal tools are more useful for evaluating the
performance of employees. I want to do my research on methods of performance appraisal that
which methods are more useful and give best result to evaluate the performance of the employees.

T. R. Manoharan (2002) has written In this article authors have discussed that they have
noticed that in many organizations appraisal systems are: (a) not relevant to organizational
objectives, (b) subject to personal bias, and (c) are often influenced more heavily by personality
than by performance. To eliminate these negative things there is a attempt with a computer based
tool called Data Envelopment Analysis (DEA) which is used in the working place to evaluate the
performance of employees. Sample size is 23 employees. A DEA study provides the following
four properties (Paradi, Smith & Schaffnit-Chatterjee 2002).

A piecewise linear empirical envelopment surface to represent the best practice frontier, consisting
of units which exhibit the highest attainable outputs in relation to all other DMU’s in the
population, for their given level of inputs

An efficiency metric to represent the maximal performance measure for each DMU(Decision
Making Units) measured by its distance to the frontier

Specific targets or efficient projections onto the frontier for each inefficient DMU

An efficient reference set or peer group for each DMU defined by the efficient units closest to the
DMU Here regression analysis is used and correlation has been checked in between these factors

18
of DEA data set: Job knowledge, customer relation, work habit, interpersonal relations, quality and
quantity. Through this analysis they have measured the efficiency and productivity of each
employee.

Rafikul Islam(July 8-10, 2005) has discussed In this article scholars have discussed that to
evaluate the performance of organization that it is meeting its goals or not, it is important to
evaluate the performance of employees of the organization and for this evaluation effective
performance appraisal system should be maintained. They have mentioned two main objectives of
this study first is to give rewards to those employees who have performed good in achieving
organizational goals and second is to identify those objectives which are not met and make an
action plan to ensure that they will achieved in future. In this paper AHP (analytic hierarchy
process) to evaluate employee performance. The criteria is used for appraisal is: quantity/quality
of the work, planning/organization, initiative/commitment, teamwork/cooperation, communication
and

external factors. Their sample size is 294 employees. There are many advantages of using AHP i.e
AHP can compare two decision elements at a time, it is easy and simple to use, it can easily
accommodate multiple decision makers to solve any specific problem.

AHP can easily accommodate multiple decision makers to solve a particular problem

AHP compares two decision elements (criteria/alternatives) at a time.

AHP is simple and easy to apply.

Graeme Redshaw (2008) has written in this article is about to improve the performance
appraisal system of nurses in organization. Author distributed questionnaire to 8 nurses to know
about the performance appraisal system of the organization. 7 nurses were nervous before the
appraisal and 1 was confident after the appraisal all nurses were agreed with the outcomes of
appraisal. If the successful appraisal system is established so there will be clear aims and
objectives, and will be able to implement fairly. Proper training will be provided to the managers
to appraise the staff correctly.

Diane Shaffer(May 11, 2009) has written in his article writer has discussed that motivation
and performance appraisal are interrelated. Motivation is dependent on performance management.
Employees who are motivated and happy with their jobs want to stay connected with the company
for a long time. Many organizations have not implemented correct performance appraisal system
to evaluate the performance of employees. Author has discussed here that they should implement a
successful appraisal method/system and also give reward to employees who perform good in the
organization. Through this practice employee become motivated towards their jobs and improve
their performance and performance of organization as a whole will also improve.

Almuth McDowall (2009)has discussed in his article that due to the high level of competition
training and development has become very important. It’s a era of globalization so it is
playing a key role for the organization to get competitive advantage. While selection of activities
including coaching, 360 degree appraisal and development centers (DCs) are become linked to
19
development. In this article 360 degree appraisal has been discussed that it is very important to
give the feedback to the employees about their performances. Positive feedback motivates the
employees and they become more willing to work for further development programs. The authors
examine different development activities with the aim being to provide a framework with which to
assess each one’s effectiveness. They compare the processes incorporating a range of
significant factors and highlight several important implications that arise for any aim to meet
organizations.

Donald L. Caruth (2009)has discussed that the purpose of this paper is to demonstrate the
need for and propose a more aligned and integrated standard for performance evaluation to
enhance effective strategic control. The paper reviews the various issues creating discontent with
the performance appraisal systems within many organizations and demonstrates how these
problems inhibit successful strategic control. It attempts to cogently incorporate the performance
appraisal characteristics needed for the exercise to function as a critical organizational control
metric and a useful feedback mechanism for strategic management of the firm. The paper finds
that, whereas performance evaluation has received reasonably robust examination in the human
resources literature, explicit guidance toward the integration with strategic control is inadequate.
Without consistent alignment between these functions, however, performance appraisal becomes
an exercise in futility instead of a vital control measurement, often resulting in not only personnel
dissatisfaction, but also, more importantly, an impediment to systematic strategy implementation.

Basic elements of Performance appraisal

a) Job Functions and Standards: These are the essential daily job tasks performed in the
position. The standards are measurements for how to perform the tasks.
b) Goals: These are written and agreed upon at the beginning of the appraisal year. Progress,
milestones achieved, changes in timelines, etc. are recorded on the form throughout the
appraisal year.
c) Behaviors for Success: These are shared with employees at the beginning of the appraisal
year so they know what they’ll be assessed on at the end of the year.
d) Additional Performance Information: Parts of this section can be recorded throughout the
appraisal year
e) Overall Assessment: To be completed at the end of the appraisal year

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(2.2) Applicability of the concept in the organization
PRIDE (Performance Report for Individual Development in Employees) is the Performance
Management System which is followed in CIL. This system was introduced in the year 2007-08.
PRIDE aims at creating alignment of your goals with those of the company and enables you to
effectively manage performance- for yourself and your team. This system covers Frontline
Executives and Middle level Executives of CIL. Frontline Executives fall in the category from
Engineer to Manager (E1-E4) and Middle level Executive starts from Senior Manager to
Additional General Manager (E5-E7).

As a trial measure, in the year 2006-07 PRIDE was filled manually, i.e. it was not e-Enabled.
From year 2007-08 it was switched over to e-Enabled. Upto year 2005, performance appraisal of
an individual was filled in the form of Annual Confidential Report (ACR). The features of
PRIDE have been designed to reduce subjectivity and individual biasness that may impact the
effectiveness of a performance management system. The system is divided into two parts:
Part A: Key Result Area (KRA’s)
Part B: Skill/ Competency Assessment

Definition of Performance:
• Definition of Performance in PRIDE is based upon Key Result Areas or KRAs and Routine
Responsibilities. • KRAs are "critical outcomes towards which effort is directed to achieve
desired business results." •Routine Responsibilities are “significant on-going tasks or
outcomes that are undertaken or delivered on a day-to-day basis.”

PRIDE PERFORMANCE CYCLE

Performance cycle at a glance:

A Performance Cycle refers to the year for which your performance is being evaluated. The
Performance Cycle of PRIDE is one year coinciding with BCCL financial year.
PRIDE follows an April to March cycle and consists of three key phases:
1. Performance and Development Planning
2. Mid-Year Review

21
3. Final Review

The figure below provides an overview of the Performance Cycle with key dates for each phase.

target setting

feedback and
developmental review
planning

final rating

PERFORMANCE MANAGEMENT CYCLE

1. TARGET SETTING: The first stage of PMS process is target setting.in this stage clear and
measurable standards of performance are set for employee in the entire organisation
2. REVIEW: the second stage of PMS process is review

FIRST HALF YEAR REWIEW-first half year review is help to access the progress the
performance till half year against the set target. This session aim to provide feedback to
enable employee to understand what he/she is doing well, and what he/she need to do
differently. No rating is provided in this stage

3. FINAL REVIEW-final review is held during the end of appraisal cycle to review and discus
the extent of employee achievement has been obtained against agreed targets. Each employee
provides a rating to his/her own performance. This is followed by rating provided by
reporting and accepting authority.

Assessment would also be done on ‘”personal attributes and special achievement by

reporting and accepting authority. Feedback would also be provided on the developmental
needs.

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 4. FEEDBACK AND DEVELOPMENTAL PLANNING-during the final review process the
supervisor will discuss employee strength and areas of development based on his/ her
observations during the year and seek the employee self-assessment

BALANCED SCORE CARD:

The Balanced Score Card of the company is prepared at the company level at the beginning of the
year based on the Strategic Plan as well as the MOU and Budget targets decided for the year.
Based on this, the Balanced Scorecards are also prepared for the following levels:

 Unit Head Level

 Product Group / Function Head Level 
 Department Head Level
 Section Head Level

The Strategic Objectives of the Company / Unit / Product Group (PG) / Dept. / Section for a given
financial year is outlined in the Balanced Scorecard prepared for that Level. Although the
Balanced Scorecard is prepared outside PRIDE, it is critical for the success of the system. The
individual Performance Plans are derived from the Section Level BSC which will derive its
strategic objectives and targets from the Department/ NC/ Unit and Company level BSCs through
a process of cascading, thus ensuring proper alignment between the objectives /targets flowing
from top to bottom.

Creating the Performance & Development Plan (P&DP)

The Performance Plan of an individual essentially consists of one section – KRAs. This is the
essential component of any Performance Plan and the individual is expected to fill in this section
adhering to all guidelines in order to be able to submit his plan to his Appraiser.

1) Selecting the KRAs:

The Appraisee will select relevant KRAs from the KRA Master of his function (i.e. the
function to which he has been mapped). A minimum of six and a maximum of fifteen KRAs

23
 can be selected. (max. 15 from own KRA Master; 5 optional which can be taken from KRA
Masters of other functions so as to ensure that the total no. of KRAs per plan does not exceed
15)

2. Target Setting and Action Plans for KRAs:

For each KRA, 5 levels of performance must be defined by the Appraisee that quantify the
extent of achievement in a given timeframe (L5 being the best and L1 being the lowest level of
performance) Along with these, the Appraisee will develop an Action Plan consisting of
specific steps required to achieve the target for each KRA.

3. Assigning Weightage: The Appraisee will propose weightages between 5% and 25%
for each KRA. The total weightage for KRA (C) should be equal to or more than the Minimum
Weightage for KRA(C) prescribed for the relevant URR to which the individual has been
mapped. The total of all KRA weightages should add up to 100%. Maximum limit of
weightages have been suggested for all KRAs across all functions for all the categories of
URRs. Executives while assigning weightages to the KRAs selected by them in their plan
cannot exceed the maximum permissible weightages specified against each KRA. This is
ensured through inbuilt system checks. The P&DP is now ready for submission.

REVIEWS
MID YEAR REVIEW

Mid-Year Review is an interactive feedback session between the Appraisee and Appraiser,
conducted during the month of October for the half-year ended September 30. It is a mid-cycle
process for reviewing and tracking achievements thus reducing the scope for year-end surprises. The
Mid-Year Review does not result in a performance score and will be treated as a 'course correction
mechanism" wherein the Appraiser guides the Appraisee on whether the Appraisee is on track to
achieve the Performance and Development Plan finalized in April. The Appraisee is able to
incorporate these inputs to ensure achievement. Mid-Year Review begins with the Appraisees‟ Self-
Appraisal. In his selfappraisal, the Appraisee will comment on his/ her current level of achievement
on KRAs, which will then be discussed with the Appraiser for his feedback and inputs. During this
phase, the Appraisee also identifies both behavioral and functional competencies for his
Development.

24
MID YEAR REVIEW PROCESS:

MID YEAR REVIEW

COMPLETED

appraisee gives his

feedbacks and
comments

appraisee does a
self review of KRA
and identifies
competencies for
development and
submits

FINAL REVIEW:
The Final Review Phase will begin with the Appraisees‟ self-appraisal wherein he/she gives the
assessment of Target Achievement on each KRA defined in the Performance Cycle (Part-A). The
Appraiser will review the outcomes of self-appraisal and give his own assessment of the
achievement of the targets in the performance plan for each KRA. In addition, he will also give
his assessment on the Skills/ Competencies defined in Part B.

25
FINAL REVIEW PROCESS:
After appraisal by Appraiser, the plan will come back to the Appraisee for his acceptance of the
assessment done for KRAs (the assessment of Part B will not be visible to the Appraisee). If the
Appraisee feels that his Appraisers' Assessment is correct, he can „Accept‟ and forward it to his
Reviewer. However, in case of any issues regarding the assessment, the Appraisee can request
for a "Discussion" with his Appraiser. After the discussion, the Appraiser will finalize his
assessment and send it back to the Appraisee. The Appraisee at this stage can either ‟Accept‟ the
assessment or „Reject‟ it. In either case the plan will go to the Reviewer with the appropriate
message for his final assessment. The Reviewer will then give his assessment on the KRAs
which will form the basis for calculation of the Consolidated Score of PRIDE for the individual.
He will also give his assessment on the Skills/Competencies specified in Part B. Thereafter, Part-
B alone will travel forward to the Accepting Authority for his final assessment. Once this stage is
complete, the Composite Score will get calculated in the system. The Final Performance Score of
PRIDE (Part-A) will be visible to the Appraisee on his dashboard under the link „Final Review‟.
Also visible will be those Competencies of Part B in which he has been given a final score of „2‟
or less on a five point scale. The feedback during Mid-Year Review will be taken into account to
significantly add value to the Final Review. The Appraisee‟s self-appraisal will not directly
contribute to the Performance Score but will be viewed as the Appraisee‟s opportunity to share
his/her perspective on his performance. Feedback and Coaching by Appraiser will be a key
component of the Final Review as this serves as an important input into the next cycles Plan.

TOOLS OF PRIDE:
The following tools are used in the PRIDE:
1. Rating Scales.
2. Competencies and development plan
.

RATING SCALES
Performance defined in PRIDE will be evaluated using 5-point Rating Scales. These Rating
Scales will be used to assess the extent of accomplishment on KRA Targets, Routine
Responsibilities and Competencies. One common scale will be used for assessing
accomplishment on KRAs and Routine Responsibilities, while another scale will be used for
assessing accomplishment on Competencies. Rating KRAs and Routine Responsibilities: KRAs
and Routine Responsibilities have a 5-point scale where each rating has been articulated and
explained.

26
 significantly moderately
meets
below below
expectations
expectations expectations

moderately significantly
above above
expectations expectations

RATING COMPETENCIES:
The 5-point Rating Scale for Competencies is different from the one used for KRAs and Routine
Responsibilities. The Appraisee will be evaluated on all Competencies in the URR using the
Competency Scale. Each Rating on the scale has been articulated to describe the extent to which
an Appraisee has displayed the behaviors described in the required Proficiency Level of the
Competency. Based upon the behaviors observed, the Rating that best describes the set of
displayed behaviors is chosen as the Rating on that Competency.

Competencies have been classified into :

A. Behavioral – Are Competencies that define behaviors or attitudes required for performing
certain jobs

B. Functional / Technical – Competencies which relate to knowledge and skill required for
performing the job are called technical /functional competencies.-

C .DISCIPLINE-Are Competencies that define behaviors or the discipline which I required to

do a job

D. Interpersonal Relationship-These are the competencies which means an employee’s

relationship with his subordinates and higher authority.

27
LIST OF VALUES TO BE ASSESSED FOR EXECUTIVES IN GRADES E1
TO E7:

1. Values Fairness: Decisions are made objectively, free from patronage and reflect the just
treatment of employees and applicants.

2. Transparency: There is open communication about every aspect of managerial decisions which
concern people.

3. Trust: Trustworthiness leading to confidence ,Allow staff the freedom to grow and develop
,Relate to others on the basis of mutual respect , Courage to stand by ones convictions.

4. Can dour: Frank and forthright ,Give and receive constructive criticism/suggestions ,openly
discuss performance deficiencies and take corrective action ,Appreciate good performance ,Be
consistent in words and deeds ,Face up to ones mistakes.

5. Collaboration: Working in tandem , Open in sharing information and in seeking suggestions /

opinion , Sensitive to concerns of others , Honouring commitments ,Encourage team work across
departments / functions.

6. Involvement: Total commitment ,Be dedicated and committed to work. ,Build commitment by
encouraging wide participation in decision making process to the maximum extent possible.

7. Flexibility: Ability to participate and adapt to changing circumstances using sound judgement
,Open to accepting new ideas , Willing to learn from anyone and to do things differently ,Prepared
to operate and adapt to different environments.

8. Willingness to accept challenge. Be willing to experiment ,Allow for freedom to fail, but learn
from it too.

28
 CHAPTER – 3

PROBLEM STATEMENT & OBJECTIVE OF THE STUDY

(3.1) SIGNIFICANCE OF THE STUDY

Everything in this world has its own significance, some may be small fry and some are paramount.
Performance appraisal is a process which is conducted annually or on a specific time period.
Recruiting a fresher must not keep that much importance for an organization as appraisal process
does. Appraisal carries out a lot of responsibility in the profit and wellbeing of the company.
The growth and sustainability of an organization depends upon the productivity rate of
their employees. Productivity is directly proportional to the performance of employees. It is
important for an organization to keep their employee happy hence they perform well and be loyal
to their company. A performance appraisal is a process in which an organization on goes to give
increments to the well performers of the organization.
Appraisal process creates a belief in employee’s mind that company is possessive and
active and doing well for them. This is the factor which helps in increase of employee productivity
level and they are encouraged to work more efficiently for the organization which indirectly effect
companies’ profits. They create the mindset that ‘better the performance more the reward’.
Performance appraisal lets the organizations understand skills, knowledge, ability and overall
performance of the employees. It also helps to map out potential performance and developments
of an employee. Performance appraisal hence keen a very important role in the organization.

(3.2) MANAGERIAL USEFULNESS OF THE STUDY

Performance appraisal has a great essence in the managerial world. Appraisal plays a vital role in
many types of crucial decision taken in the organization. This process helps management identify
strong and weak performers and thereby assist in making decisions regarding promotion, raises,
transfers, bonuses and other type of employee reward programs.

29
 Data collected during the appraisal process helps Human Resource Department to evaluate
the effectiveness of training and development program going on in their organization. It also helps
in determining whether our manpower is perfect for the business or not. Are we with the right
crew? There are many questions in our mind while we do recruitment. Poor performance may
indicate the need of retaining. Likewise, good performance may indicate untapped potential that
should be developed. Appraisal helps us in scrutinizing the process of recruitment, selection,
training and development

(3.3) PROBLEM OBJECTIVE AND OBJECTIVE OF THE STUDY

(3.3.1) PROBLEM STATEMENT

Problem statement and objective of the study:-

There are many parameters which are kept in mind while performance appraisal process.

The modern way of process may ease the ongoing pressure on the Human Resource

Department, still this process maintains a great load on the crew working over it.

Basically the present study was under taken to clarify certain questions related to the care

phase of performance appraisal through regular assessment of progress toward goals,

which focuses the attention and efforts of an employee or a team. A small mistake can

create great misunderstanding in the internal relationship between H.R and their

employees.

The main problem statement of the study is

1) The methodology under taken by Central Coalfields LTD. for appraisal of their

Employees

2) Effect of appraisal process on the performance of an employee

3) The touchstones to be kept in mind by an employee for getting better

30
appraisals in the upcoming financial year

4) Critical aspects to be kept in mind by the Human Resource Department while doing appraisal

(3.3.2) OBJECTIVE OF THE STUDY

To study the process and to understand the importance of Performance Appraisal System in CIL
that synchronizes the performance of the employees so as to make the work effective.

 To analyze the Performance Appraisal System of CIL in detail and its effectiveness.

 To analyze the problems faced by the appraisee and the appraiser in this system.

 To analyze the steps taken by the appraisers for the improvement of the performances of the
appraisees.

(3.3) SCOPE OF THE STUDY

The scope of the study is restricted to B & K AREA of Central Coalfields Ltd.

And to know the effectiveness of performance appraisal system.

31
 CHAPTER-4

RESEARCH MEHODOLOGY

(4.1) RESEARCH DESIGN

The research design used for the study is the descriptive research design.

(4.2) SOURCE OF DATA COLLECTION

The data for the present research study was collected through two different sources namely:

• Primary data sources

• Secondary data sources

(4.2.1) PRIMARY DATA SOURCES

Primary data is that which is collected for the first time and thus happens to be original in
character.

The primary data was collected through the following methods:

The primary data is the information which is collected for the first time and thus happens to be
original in character. It is obtained through observation and through direct communication with
the respondents. It includes the collection of data through questionnaires. The primary data for the
report has been collected through the following tools like: Face to face interview with the
employees of the organization. The survey was done through the help of questionnaire. The facts
were gathered from the primary data as far as possible to prevent the outcome being guided by the
company biases.

(4.2.2) SECONDARY DATA SOURCES

32
Secondary data refers to the data that has already been collected, but has been used to carry out the
present study.

The secondary data was collected through the following sources:

• PMS manual of CCL.

• Company’s website (www.coalindia.in)
• Reports, surveys, research, papers on CCL available on the internet as well as with the
organization.

(4.3) UNIT OF ANALYSIS

Total no. of employees surveyed is 20. It was done at B & K AREA of CCL . Therefore in order
to fulfill the objectives of the study, the perception survey is conducted on 20 employees i.e.
Census method has been used.

(4.4) LIMITATIONS OF THE STUDY

• The result through the questionnaire can be biased to some extent.

• The sample size of 20 persons gives only a small representative result and the same may
not be applicable for the large sample.
• Due to time constraint, this research is limited B & K AREA of CCL.
• The people at CCL were very much reluctant to fill in the questionnaire.

33
 CHAPTER-5

ANALYSIS & INTERPRETATION OF THE STUDY

1. Are you satisfied with the present performance appraisal system (PRIDE)?

If no, than why? ----------------------------------------------------------------------------

YES 8
NO 2

20%

YES
80% NO

34
2. According to you, how often should the performance review take place?

Once a week 2

Once a month 3

Every 3 months 5

Once a year 0

0%
20%

Once a week
50%
Once a month
30% Every 3 months
Once a year

35
3As an appraisee do you face any problem while selecting the KRAs?
agree 6
Strongly agree 2
disagree 2
Strongly disagree 0

0%
20%

agree

20% 60% Strongly agree

disagree
Strongly disagree

36
4. Do you get any formal feedback regarding your performance?

Agree 4

Strongly agree 3

Disagree 3

Strongly disagree 0

0%
30%
40%
Agree
Strongly agree
Disagree
30% Strongly disagree

37
5. Are any steps taken to improve the performance if not upto the mark?
Agree 7
Disagree 3
Strongly agree 0
Strongly disagree 0

0%
30%
Agree
Disagree
70% Strongly agree
Strongly disagree

38
6. Do you think the PRIDE system reduces biasness?
agree 6
Strongly agree 1
disagree 2
Strongly disagree 1

10%

20%
agree

60% Strongly agree

10% disagree
Strongly disagree

39
7. Do you feel motivated after performance appraisal?

Agree 6
Disagree 2
Strongly agree 2
Strongly disagree 0

0%
20%

Agree

20% 60% Disagree

Strongly agree
Strongly disagree

40
8. Is salary the adequate reflection of your performance?

Agree 4
Strongly agree 4
Disagree 2
Strongly disagree 0

0%
20%
40%
Agree
Strongly agree
Disagree
40%
Strongly disagree

41
9. Do you think the present system is effective / better than the previous appraisal
system?

Agree 2
Strongly agree 7
Disagree 1
Strongly disagree 0

10% 0%
20%

Agree
Strongly agree
Disagree
70% Strongly disagree

42
10. Do you find these steps effective / useful in your job?
Yes 8
No 2

20%

Yes
No
80%

43
 FINDINGS, CONCLUSION & RECOMMENDATIONS

(6.1) FINDINGS:

India is a third largest country in the production of coal. Coal India Limited is the main source in
the production of coal. Coal India limited is the second greatest employer after Railway. C.C.L,
having a vast repot ire of human resource, follow a well-defined metrics’ to appraise
performance for both executive & non-executive.

With the help of interview and discussion and on the basis of instrument of defined questionnaire
I found that the member of the C.C.L is aware of the method of Performance Appraisal and they
feel the need of this system in the Organization. Performance Appraisal in the company is being
at a regular interval of one year (12 months).They feel that the system has its influence over the
efficiency & career growth of the workers Performance Appraisal of individual employee is
sought for by the NEE department only when the promotion of the concerned employee is under
consideration. Otherwise the Performance Appraisal of the worker concerned is kept with the
HOD of the department where the worker is posted .Research reveals that there is general
awareness regarding the Performance Appraisal process in the organization. The Performance
Appraisal in the company is probably a confidential one where there is no interaction of the
superior with the subordinate at the time of assessment of performance. However instances have
been seen that the Performance Appraisal is made in front of the worker but even then the
strength and weaknesses of the worker has not been conveyed to him .The study of “Performance
Appraisal system” at C.C.L. has given me an opportunity to have closer look at the different
imperatives of the appraisal system as an important domain of HR delivery. After studying the
different factors that affects variably the performance, I would like to give certain suggestions
herewith, which further can be added on the agenda of HR initiatives at C.C.L.

44
(6.2) CONCLUSION:

The study on Performance Appraisal at CCL has given me opportunity to have a closer look at
the imperatives of the performance Appraisal System as a domain of HR delivery.

It has enhanced my knowledge as how an organization work and operates to perform its
operations effectively and efficiently. The project has not only helped me to have close insight
into the practical implication of business process but also the performance appraisal is done.
While going through the different process followed at CCL within performance Appraisal, I
came to know of the importance of performance appraisal. This opportunity to work as
researcher has helped me understanding the theoretical and practical aspects of management. The
summer project, also made me realize the importance of HR as a fascinating function in an
organization. I got to know of the importance of communication and interpersonal skill in getting
things done from others. In a nut shell, it was great learning for me as management student.
With the help of personal interview and discussion with the employee and on the basis of
instrument of defined questionnaire I reached on the following conclusion.
1.According to the respond we can conclude that majority of the respondent are know about the
Performance Appraisal System and they feel its need in the organization, they rated it good. It
means that Performance Appraisal System is satisfactory in the organization.
2. According to respond given we can conclude that Performance Appraisal System affected the
workers in many respect. They affect the efficiency & career growth of the workers. It brings out
training 7 development needs of the workers. It means it provide motivation to workers and helps
in taking the right decision.
3.According to respond given the relationship of the workers with superior, peers and
subordinate is good. Any task assigned to workers is communicated to them. Thus it can be
concluded that open and transparent Performance Appraisal System is prevailing in the
organization and their relationship is satisfactorily
.4.According to respond given we conclude that majority of the respondent get promotion in their
service period. If they do not get any promotion, they are compensated by other means like
SLU/SLI. It means ,workers are satisfied with the Performance Appraisal System in the
organization

45
(6.3) RECOMMENDATION:

1. Features and tools of Performance Appraisal system should be changed so that the subjectivity
is reduced and an individual bias that may impact the effectiveness of performance management
system is inactivated
2.System should be redesigned for objectivity, transparency and consistency across C.C.L.

3.Management by objectives (MBO) should also be applied. It is the modern and advanced
method of appraisal. MBO is potentially a powerful philosophy of managing and an effective
way for operationalizing the evaluator process. It seeks to minimize external controls and
maximize internal motivation through goal setting between the superior and subordinates and
increases the subordinate control over their own work.
4.The self-appraisal form should have open-ended approach to get the true picture of individual’s
competence level (strength and weakness). The employee should not hesitate in giving their
weakness.
5.The process of 360-degree appraisal should be applied to make the system more transparent.

BIBLIOGRAPHY

 https://www.scribd.com/doc/22904660/Project-on-Central-Coal-Field

 https://www.owler.com/company/cclind

 http://www.centralcoalfields.in/indsk/pdf/06_06_18_mnpwr_eng.pdf

46
APPENDIX

47