A PROJECT REPORT ON

Assessing the Satisfaction Level of the Executives on

Performance Appraisal Process followed at NALCO,
Odisha

Project Report is submitted towards Partial Fulfilment for

The Course Requirement of Master of Business Administration (MBA)

Submitted By

Barsha Priyadarshini Jena

Roll No: 22MB024
Registration No:222130024443

Under the Guidance of

External Guide Internal Guide

Mr. Adhar Kumar Biswal Prof. Ashwini Kumar Patra

Manager(HRD), NALCO Prof. (HR, MBA Dept.), GITA

Submitted to

National Aluminium Company Limited,

Bhubaneswar, Odisha
 EXTERNAL GUIDE CERTIFICATE
This is to certified that the research report entitled “Assessing the Satisfaction Level of the
Executives on Performance Appraisal Process followed at NALCO, Odisha” being
submitted by Barsha Priyadarshini Jena who is pursuing MBA from GITA Autonomous
college, Bhubaneswar. Has carried out all her project work under my guidance and supervision.

Mr.Adhar Kumar Biswal

Manager
(HRD), NALCO
Bhubaneswar
Signature

i
 CERTIFICATE OF ORIGINALITY

This is to certify that the project titled “Assessing the Satisfaction Level of the Executives
on Performance Appraisal Process followed at NALCO, Odisha” is an original work of the
student and is being submitted in partial fulfilment for the award of Master’s Degree in
Business Administration of GITA Autonomous College, affiliated to Biju Patnaik University
of Technology (BPUT), Rourkela. This report has not been submitted earlier to this University
or to any other University/ Institution for the fulfilment of the requirement of a course of study.

SIGNATURE OF SUPERVISOR SIGNATURE OF STUDENT

Place: Place:

Date: Date:

ii
 CERTIFICATE OF GUIDE/SUPERVISOR
This is to certify that the dissertation entitled “Assessing the Satisfaction Level of the
Executives on Performance Appraisal Process followed at NALCO, Odisha”” by Barsha
Priyadarshini Jena for the partial fulfilment of “Master in Business Administration (MBA)”
is a record of bonafide original research work carried out by her, under my supervision and
guidance. The dissertation has reached the standard of fulfilling the partial requirement of the
Master of Business Administration in Management (MBA) of GITA Autonomous College. The
dissertation hasn’t been submitted to any other University/Institution for the award of any
degree or diploma so far as my knowledge is concerned.

Prof.Ashwini Kumar Patra

Date:

iii
 DECLARATION
I, Barsha Priyadarshini Jena, student of MBA (GITA Autonomous College), do hereby
declare that I have completed the project study entitled “Assessing the Satisfaction Level of
the Executives on Performance Appraisal Process followed at NALCO, Odisha”” under
the guidance of Prof. Ashwini Kumar Patra in the field of HR.

The project work done by me is genuine and authentic and is not submitted to any other

institution for the award of any degree or publication.

Date - Barsha Priyadarshini Jena

Place -

iv
 ACKNOWLEDGEMENT
The satisfaction that accompanies the successful completion of any task is incomplete without
acknowledging the people who made it possible and whose constant guidance and
encouragement crown all the effort and success.

Firstly, I would like to express my immense gratitude towards our institution GITA
Autonomous College, Bhubaneswar, which permitted me to work with National Aluminium
Company (NALCO), Bhubaneswar.

I would thank all the HR department & the HRD department of NALCO for guiding me in
successful completion of the project.

Finally I extend my sincere thanks to my internal guide Prof. Ashwini Kumar Patra (Faculty
of dept. of MBA, GITA) And to my external guide Mr. Adhar Kumar Biswal ( Manager,
HRD, NALCO) whose guidance and co-operation helped me in preparing this project report.

Barsha Priyadarshini Jena

Reg.no - 222130024443

v
 CONTENTS
Page Nos.

Chapter-I Introduction
1.1. Backdrop
1.2. Statement of problem
1.3. Objectives of the Study
1.4. Outlines of the study
Chapter-II Theoretical perspective, Review Literature and scope of the study
2.1. performance management
2.2. performance appraisal
2.3. aims and objectives of performance appraisal
2.4. characteristics
2.5. need for performance appraisal
2.6. performance appraisal process
2.7. appraisal methods
2.8. importance of the study
2.9. problems in performance appraisal
2.10. literature review
2.11. scope of the study

Chapter-III Methodology
3.1. Introduction
3.2. Research Design
3.3. Sample size
3.4 sources of data collection
3.5 Statistics adopted for research analysis
3.6. Expected Output

Chapter-IV Organization Profile

4.1. Introduction
4.2. Vision, Mission, Core value
4.3. Objectives and Goals
4.4. Products
4.5. Operating Units of Nalco
4.6. Human Resources
4.7. Award and Achievement
4.8. SWOT of NALCO
4.9. Global Linkage
4.10. NALCO Today
4.11. Company Details

Chapter-V Demographic Profile of the Respondents

5.1. Gender wise Classification of Respondents

5.2. age wise Classification of Respondents
 5.3. experience wise Classification of Respondents
5.4. educational qualification wise Classification of Respondents
5.5. Involvement in Designing Appraisal system

Chapter-VI Analysis of the Study

6.1. analysis of individual performance appraisal at NALCO

6.2. annual performance appraisal of executives at NALCO
6.3. detailed about appraisal form and process
6.4. level of reporting officer, reviewing officer, higher authority

Chapter-VII Conclusion
7.1. conclusion
7.2. Findings
7.3. suggestions

Annexure –I Bibliography

Annexure –II Questionnaire

Annexure –III Photographs

Vii
 List of Tables

Table 5.1. Distribution of respondents based upon the Gender

Table 5.2. Distribution of respondents based upon age of employees

Table 5.3. Distribution of respondent based upon the experience

Table 5.4. Distribution of Respondents based upon educational qualification

Table 5.5: Distribution of respondent upon involvement in designing appraisal system

viii
CHAPTER-I
INTRODUCTION
INTRODUCTION
The growing complexity and broad dynamics of modern business emphasises that organization
must adopt changes in its four key resources i.e. man, money, material and machinery. the
perfect co-ordination and utilization of these resources are vital for an organization’s survival.
however, the critical role of Human Resource Management in an organization’s success and
long term viability is essential.
Performance Management System is a goal oriented process aimed at maximizing employee
and team productivity to achieve organization’s strategy .it involves measuring and improving
workforce value, incorporating incentive goals and values to motivate employees.
While all HR functions contribute to performance management, performance appraisal is
highlighted as more crucial element. performance appraisal occurs at specific times, whereas
performance management is continuing and dynamic, involving everyone in the organization.
“Performance Appraisal’’ is the systematic, periodic evaluation of performance and potential
of an employee for pertaining to his present job and for a better job in the future .it may be
viewed as an overall measure of organizational effectiveness. organizational objectives are met
through effort of individual employees. If employee performance is improved the organization
will lift its performance. scientific and systematic performance appraisal enables the
management to know to what extent it has been able in releasing of organizational goals and at
the time of, the individual comes to know his relative wroth in terms of his performance.
This project is related with “performance appraisal of executives of NALCO”. It contains
mainly what is the appraisal system used at NALCO, for the executive and how it is evaluated.

1.1. BACKDROP

The history of Performance appraisal is quite brief. The practice of appraisal is very ancient
art. The formal appraisal really dates from the time of second world war by the mid 1950’s
(not more than 60 years) with the companies using personality based systems for measuring
performance. Performance appraisal used as a distinct and formal management procedure in
evaluation of work performance.

There is says: - Dulewicz (1989), “a basic human tendency to make judgements about
those one is working with, as well as about oneself”. So it seems, appraisal is both inevitable
and universal.

In the absence of carefully structured system of appraisal, people will tend to judge the
work performance of others. The human inclination to judge can create serious motivational,
ethical and legal problems in the workplace.

So, performance appraisal system began as simple method of income justification where
appraisal was used to decide whether or not the salary / wages of an individual employee was
justified. The process was firmly linked to material outcomes. If an employee’s performance
was found to be less than ideal, a cut in pay would follow but if it is better, a pay rise in order.
Sometimes this basic system succeeded in getting the result that were intended; but more often
than not, it failed.
 It is due to the early thought open appraisal was that – different people with roughly
equal work abilities could be paid the same amount. These observations were confirmed in
empirical studies. Pay rates were important, but they were not the only element that had an
impact on employee performance. It was found that other issues such as- morale, confidence,
self-esteem could also have a major influence.

As a result, the traditional emphasis on reward outcomes was progressively rejected. In

the 1950’s in the united states, the appraisal process as tool for motivation and development
was gradually recognized. Then at the period of industrial revolution is was used as a means of
measuring organizational efficiency. It’s roots in the early 20th century can be traced to Tailor’s
pioneering time and motion studies. The general model of performance appraisal, as it is known
today, began from that time. Now, performance appraisal is a means of assessing employee’s
performance, teamwork, achievements, progress, establishing future goals etc. that can be
linked with organizational goals and objectives .

1.2.STATEMENT OF PROBLEM
Performance appraisal is a process of assessing, summarizing and developing the work
performance of an employee. In order to be effective and constructive, the performance
manager should make every effort to be obtain as much objective information about to the
employee’s performance as possible. Low performance can push the organization back in
today’s tough competition scenario. The project is end at analyzing the performance appraisal
and its effectiveness in the organization.

1.3.OBJECTIVES OF THE STUDY

The major objective of the study at NALCO are as follows:

1. To analyse the performance appraisal system at NALCO.

2. To find out the methods followed by the organization in evaluating the performance of their
employees.
3. To study the effectiveness of the existing performance appraisal system.
4. To determine the satisfaction level of the appraise upon the performance appraisal system
of the organization.

1.4.OUTLINE OF THE STUDY

Performance appraisal has been considered as most vital and indispensable system for an
organization. In an organization it provides highly useful information in making decision
regarding various personal aspects.

The study focuses on the existing performance appraisal system of a executives at NALCO. It
covers the satisfaction level of the employee on the current performance appraisal system of
the organization .it puts light into the effectiveness of the performance appraisal on various
aspects of NALCO like promotion, training and development, recruitment, HRP, compensation
program etc. it analyses the various data collected from the survey to find out whether this
system brings uniformity and welfare of the organization. It provides information that helpful
for the management in the exercising organizations control.
CHAPTER-II
THEORETICAL PERSPECTIVE,
LITERATURE REVIEW,
SCOPE OF THE STUDY
 THEORETICAL PROSPECTIVE
2.1. PERFORMANCE MANAGEMENT
Performance management (PM) is a goal-oriented process directed toward ensuring that
organizational processes are in place to maximize the productivity of employees, teams, and
ultimately, the organization. It is a major player in accomplishing organizational strategy in
that it involves measuring and improving the value of the workforce.
Organizational interest in performance management has increased as a result of
competitive pressure, the influence of HRM and the individualization of the employment
relationship. Although every HR function contributes to performance management, training
and performance appraisal play a more significant role. Whereas performance appraisal
occurs at specific time, performance management is a dynamic, ongoing, continuous
process.
Every person in the organization is a part of the PM system. Each part of the system,
such as training, appraisal, and rewards, is integrated and linked for the purpose of continuous
organizational effectiveness. With PM, the effort of each and every worker should be directed
toward achieving strategic goals.
Robert J. Greene, CEO of Reward Systems Inc., said, “Performance management is
the single largest contributor to organizational effectiveness. If you ignore performance
management, you fail.”
With PM systems, training has a direct tie-in to achieving organizational
effectiveness. In addition, pay and performance are directly related to achieving organizational
goals.

2.2. PERFORMANCE APPRAISAL (PA)

Appraisal of performance is widely used in society. Since then tremendous change have taken
place in the concept, techniques and philosophy of the employee’s appraisal. On the other hand,
now-a-days, in an organization the PA focuses on performances and overall development of
the employees.
“It is a systematic evaluation of an individual with respect to performance on the job and
individual’s potential for development.”
According to Edwin B Flippo- “Performance appraisal is a systematic, periodic and so far as
humanly possible, an impartial rating of an employee’s excellence in matters pertaining to his
present job and to his potentialities for a better job.”
 It is formal, structured system of measuring, evaluating job related behaviors and outcomes
to discover reasons of performance and how to perform effectively in future so that
employee, organization and society all benefits.
 A critical point in this is the word formal, because in actuality, managers should be
reviewing an individual’s performance on a continuing basis. PA is especially critical to
the success of performance management.
 The performance is measured against such factors as job knowledge, quality and quantity
of output, initiative, leadership abilities, supervision, dependability, co-operation,
judgment, versatility and health etc.
 It linked with various important aspect of the organization like-salary increments,
promotion, demotion, training and development, recruitment etc.

Developing an effective performance appraisal system has been and will continue to be a high
priority for management.

2.3. AIMS & OBJECTIVES OF (PA)

 To evaluate the performance and potential of the Appraise and to assess the competency to
assume higher responsibilities.
 To enable the Appraise to set the tasks & targets in consultation with the Appraiser in line
with business and social objective of the company.
 To align the individual performance with the mission and vision of the company.
 To retain talent, to enhance competency, to promote professional excellence, to identify
and develop leadership talent for future.
 To encourage communication, continuous feedback between the Appraise and Appraiser
and create transparency in performance assessment process and inculcate a performance
culture in the company.
 To maintain records in order to determine compensation packages, wage structure, salaries
raises, etc.
 To identify the strengths and weaknesses of employees to place right men on right job.
 To judge the gap between the actual and the desired performance.
 To help the management in exercising organizational control.
 Provide information to assist in the other personal decisions in the organization such as
recruitment, selection, training and development.
 To reduce the grievances of the employees

2.4. CHARACTERISTICS OF EFFECTIVE (PA)

 Performance appraisal is a link between organization’s strategy and results;
 Performance appraisal is directed toward a purpose;
 Appraisal can be beneficial for the organization, the employee and the manager;
 Appraisal can serve administrative or developmental purposes; designing a scheme for each
purpose is always advisable;
 Providing an employee with feedback can enhance his performance;
 Appraising all category of employees is a common practice among organizations.
 Managers, employees or a combination of raters can conduct appraisal. Employees can also
carryout self-assessment.

2.5. NEED FOR PERFORMANCE APPRAISAL

Performance appraisal consultation is a platform where the worker is recognized for his/her
good work, and it is pertinent to recognize the work done by the work force. Regardless of if
the employee has not done the work favourably, it is of the essence to show that the
organization is riveted in his/her solo performance and their development in the company. This
encourages the employee to work in a dedicated manner, which in turn, benefits the company.
A common appraisal program can have a significant impact on levels of employee job satisfy
and motivation.
Appraisal helps in-
 Finding out the compulsion for training and development.
 Analyzing and studying appraisal data for better recruitment
 It receives employee comments, suggestions and grievances and factors them into the
organization’s policies in the future.
 Constructive criticisms and evaluation of performance in a good manner.
 Expression of work trends and patterns.
 With proper appraisal process organization has grown over time.
 Identifying the structural flaws in an organization.

2.6. PERFORMANCE APPRAISAL PROCESS

Establishing performance standard

Fig.2.6
 Communicating standards and expectations

measuring the actual performance

comparing with standards

discussing result
(providing feedback)

discussion making -taking corrective action

1. Establishing performance standards

 The first step in the process of performance appraisal is the setting up of the standards
which will be used to as the base to compare the actual performance of the employees.
 This step requires setting the criteria to judge the performance of the employees as
successful or unsuccessful and the degrees of their contribution to the organizational goals
and objectives.
 The standards set should be clear, easily understandable and in measurable terms.
 In case the performance of the employee cannot be measured, great care should be taken to
describe the standards.

2. Communicating the standards

  Once set, it is the responsibility of the management to communicate the standards to all
the employees of the organization.
 The employees should be informed and the standards should be clearly explained to the
employees.
 This will help them to understand their roles and to know what exactly is expected from
them.
 The standards should also be communicated to the appraisers or the evaluators and if
required, the standards can also be modified at this stage itself according to the relevant
feedback from the employees or the evaluators.

3. Measuring The Actual Performance

 The most difficult part of the Performance appraisal process is measuring the actual
performance of the employees that is the work done by the employees during the specified
period of time.
 It is a continuous process which involves monitoring the performance throughout the year.
 This stage requires the careful selection of the appropriate techniques of measurement,
taking care that personal bias does not affect the outcome of the process and providing
assistance rather than interfering in an employee’s work.

4. Comparing actual performance with desired performance

 The actual performance is compared with the desired or the standard performance.
 The comparison tells the deviations in the performance of the employees from the
standards set.
 The result can show the actual performance being more than the desired performance
or, the actual performance being less than the desired performance depicting a negative
deviation in the organizational performance.
 It includes recalling, evaluating and analysis of data related to the employees’
performance.

5. Discussing results [Feedback]

 The result of the appraisal is communicated and discussed with the employees on one-
to-one basis. The focus of this discussion is on communication and listening.
 The results, the problems and the possible solutions are discussed with the aim of
problem solving and reaching consensus.
 The feedback should be given with a positive attitude as this can have an effect on the
employees’ future performance.
 Performance appraisal feedback by managers should be in such way helpful to correct
mistakes done by the employees and help them to motivate for better performance but
not to demotivate.
 Performance feedback task should be handled very carefully as it may leads to
emotional outburst if it is not handing properly.
 Sometimes employees should be prepared before giving them feedback as it may be
received positively or negatively depending upon the nature and attitude of employees.

6. Decision-making (Initiative Corrective Action):

 The purpose of conducting employee performance appraisal is for making decisions about
employees without any bias by the HR manager.
 Decision-making by HR managers about employees rewarding, promotions, demotions,
transfers and sometimes suspensions/dismissal of employees are depended upon the
employee performance appraisal.
 The decision taken by HR manager should match exactly with performance appraisal
results of employees to avoid grievance or disturbances in between them, as they affect
overall performance of the organization.

2.7 PERFORMACE APPRAISAL METHODS

With the evolution and development of appraisal system, a number of methods or techniques
of performance appraisal have been developed. Managers may choose from among methods
the type of performance appraisal system used depends on its purpose.
In the organization. Under the individual evaluation methods of merit rating, employees are
evaluated one at a time without comparing them with other employees.
There are two types of methods: -
A. Traditional method
B. Modern method
If the major emphasis is on selecting people for promotion, training and merit pay increases, a
traditional method may be appropriate. Collaborating method, including input from the
employees themselves, may prove to be more suitable for developing employees.

PERFORMANCE
APPRAISAL METHODS

TRADITIONAL METHOD MODERN METHOD

 Checklist method  360 0 appraisal method

 Simple checklist method  Behaviorally anchored rating scale
 Forced choice method  Human resource accounting method
 Weighted checklist method  Result method
 Productivity measures method
 Critical incident method
 Balance score card method
 Confidential method  Assessment Centre method
 Free from essay method  Management by objective (MBO)
 Field review method
 Group appraisal method
 Graphic rating method
 Paired comparison method
 Straight ranking method

TRADITIONAL METHOD

 CHECKLIST METHOD
• A checklist represents, in its simplest form, a set of objectives or descriptive statements
about the employee and his behavior.
• If the rater believes strongly that the employee possesses a particular listed trait, he checks
the item; otherwise, he leaves the item blank.
• A more recent variation of the checklist method is the weighted list.
• Under this, the value of each question may be weighted equally or certain questions may
be weighted more heavily than others.
There are 3 types of checklist method: -
SIMPLE CHECKLIST METHOD
The checklist consists of large number of statements, concerning an employee behavior.
The rater checks to indicate if the behavior of an employee is positive or negative to each
statements. Employee performance is rated on the basis of positive checks.

 Is employee regular? YES NO

 Is employee respected by subordinates? YES NO
 Does he follow instruction? YES NO
 Is employee helpful? YES NO

 FORCED CHOICE METHOD

This method, a large number of statements in groups are prepared. Each group consist
of four descriptive statements concerning employee behavior. Two statements are most
descriptive (favorable) and two are least descriptive(unfavorable) of each tetrad. The actual
weightings of the statements are kept secret. The appraiser is asked to select one statement that
mostly describes employees behavior out of the two favorable statements and one statement
from the two unfavorable statement.

CRITERIA RATINGS

. REGULARITY ON THE JOB MOST LEAST

 Always regular
 Inform in advance for delay
 Never regular
 Remain absent
 Neither regular nor irregular

 WEIGHTED CHECKLIST METHOD

Weighted checklist method having a series of statements about an individual, to indicate that
some are more important than others. The rater is expected to look into the questions relating
to the employee's behaviour, the attached rating scale and tick those traits that closely describe
the employee behaviour. Often the weights are not given to the supervisor who complete the
appraisal process, but are computed and tabulated by someone else, such as a member of the
personal unit.

 CRITICAL INCIDENT METHOD

 Under this method, the manager prepares lists of statement of very effective and ineffective
behavior of an employee.
 These critical incidents and events represent the outstanding and poor behavior of
employees on the job.
 The manager maintains logs on each employee, whereby he periodically records critical
incidents of the worker’s behavior. At the end of the rating period, these recorded critical
incidents are used in the evaluation of the workers’ performance.
 It results in very close supervision which may not be liked by the employee.
Ex: A fire, sudden breakdown, accident

Workers reaction scale

A Informed the supervisor immediately 5
B Become anxious on loss of output 4
C Tried to repair the machine 3
D Complained for poor maintenance 2
E Was happy to forced test

 CONFIDENTIAL REPORT
 Assessing the employees’ performance confidentially is a traditional method of
performance appraisal. It is mostly used in Govt. organization.
 It is a descriptive report prepared, generally at the end of every year, by the employee’s
immediate superior.
 Under this method, superior appraises the performance of his subordinates based on his
observation, judgment and intuitions. The superior keeps his judgment and report
confidentially.
 The report is not data based.
 FREE FROM ESSAY METHOD
 This method requires the manager to write a short essay describing each employee’s
performance during the rating period.
 This format emphasizes evaluation of overall performances, based on strengths/weaknesses
of employee’s performance, rather than specific job dimensions.
 Under this method, the rater is asked to express the strong as well as the weak points of the
employee’s behavior.
 This technique is normally used with a combination of graphic rating scale because the
rater can elaborately present the scale by the substantiating an explanation for his rating.
 FIELD REVIEW METHOD
 In this method a training officer from the personnel department interviews line supervisors
to evaluate their respective subordinates.
 The interviewer prepares in advance the questions to he asked.
 By answering these a supervisor gives his opinions about the level of performance of his
subordinates, their work progress, his strength and weakness, promotion potential etc.
 The evaluator takes detailed notes of the answer which are then approved by the concerned
supervisor.
 These are then placed in the employee personal service files.
 GROUP APPRAISAL METHOD
 In this method, an employee is appraised by a group of appraisers.
 This group consists the immediate supervisor of the employee, other supervisor who has
close contact with the employee’s work, manager or head of the department and
consultants.
 The immediate supervisor enlightens other members about the job characteristics,
demands, standard or performance, etc.
 Then the group appraises the performance of the employees, compares the actual
performance with standards, finds out the deviations, discusses the reasons therefore,
suggests ways for improvement of performance, prepares an action plan, studies the need
for change in the job analysis and standards and recommends changes, if necessary.
 GRAPHIC RATING METHOD
 It is one of the oldest methods of performance evaluation.
 Under this method, a printed form is used to evaluate the performance of an employee.
 A variety of traits and a range of performance may be used in these types of rating devices,
the most common being the quantity and quality of work for each job.
 The employee is then rated by identifying the score that best describes his/her level of
performance for each trade.

 PAIRED COMPARISON METHO

 Use of paired comparisons is a more systematic method for comparing employees to one
another.
 It is a method of comparing employee and job with another one on the basis of skill sets,
time required to execute tasks, knowledge etc.
 Job evaluation is done by comparing the worth of one job against that of another. Ranks
and grades can be decided depending on the number of points scored by each job.

 STRAIGHT RANKING METHOD

 This is a relatively easy method of performance appraisal.
 Under this method, the ranking of an employee in a work group is done against that of
another employee.
 The relative position of each employee is tested in terms of his numerical rank.
 It may also be done by ranking of a person on his job performance against another member
of competitive group. While using this method, the evaluator is asked to rate employees
from highest to lowest on some overall criterion.
 It is very difficult to compare individuals possessing varied behavioral traits.
 This method speaks only about the position where an employee stands in his group.
 There is no systematic procedure for ranking individuals in the organization.
MODERN METHOD

 3600 APPRAISAL METHOD

 This is new concept in performance appraisal, where the feedback is collected from all
around – the employee, the superior, the subordinates, the peer group, and the customers.
 The evaluation is very comprehensive in terms of the employee’s skills, abilities, styles,
and job – related competencies.
 There are at least four reasons why such an approach is available.

1. It includes observations from different perspectives, and perhaps includes different

aspects of performance that capture the complexities of an individual’s performance in multiple
roles.
2. Feedback from multiple sources may reinforce feedback from the boss, thereby
making it harder to discount the viewpoint of that single person.
Discrepancies between self – ratings and those received from others may create an awareness
of one’s needs for development, and motivate individuals to improve their performance in order
to reduce or eliminate such discrepancies.
4. At least some senior managers believe that if they can improve leadership among
their organization’s leaders, ultimately that will benefit the bottom line.
 BEHAVIOURALLY ANCHORD RATING SCALE
 This method represents the latest innovation in performance appraisal.
 This method aims at combining the benefits of narrative critical incidents and quantified
ratings by anchoring a quantified scale with specific narrative examples of good/poor
performances.
 BARS is designed to bring the benefits of both quantitative and qualitative data to
employee appraisal process. BARS is usually represented as a vertical rating graph.
 These behavioural anchor points are collected using Critical Incident Techniques (CIT),
which are procedures used for documenting human behaviour that are of significance in a
particular arena.

 For example: - A level five rating for a nurse may require her to show sympathy to patients
while a level eight rating may require her to show higher level of sympathy and this is
reflected in all their interactions with patients.
 In BARS, the behaviours used are activity oriented rather than results oriented.
 HUMAN RESOURCE ACCOUNTING
 Human Resource Accounting is a method to measure the effectiveness of personnel
management activities and the use of people in an organization.
 HRA is the process of Assigning, budgeting, and reporting the cost of human resources
incurred in an organization, including wages and salaries and training expenses.
 Human Resource Accounting (HRA) is a sophisticated way to measure the effectiveness of
personnel management activities and the use of the people in an organization.
 Human resource accounting method tries to find the relative worth of these assets in the
terms of money. In this method the Performance appraisal of theemployees is judged in
terms of cost and contribution of the employees.
 The cost of employees include all the expenses incurred on them like their compensation,
recruitment and selection costs, induction and training costs etc whereas their contribution
includes the total value added (in monetary terms).
 The difference between the cost and the contribution will be the performance of the
employees.
 RESULT METHOD
 The manager and subordinate jointly agree on objectives for the next appraisal period in a
result-based system, in the past a form of management by objectives.
 In such a system, one objective might be, for example, to cut waste by 10 percent. At the
end of the appraisal period, an evaluation focuses on how well the employee achieved this
objective.

 ASSESSMENT CENTRE METHOD

 An assessment centre is a place to evaluate an individual potentiality and performance, so
as to position he/she in the core functional areas.
 normally, organizations outsource assessment centres instead of making them by their
own.
 An assessment center typically involves the use of methods like social/informal events,
tests and exercises, assignments being given to a group of employees to assess their
competencies to take higher responsibilities in the future.
 This method tests a candidate in different social situations using a number of assessor and
procedures.
 The trained evaluators observe and evaluate employees as they perform the assigned jobs
and are evaluated on job related characteristics.

 MBO METHOD
 MBO represents a modern method of evaluating the performance of personnel.
 This is a well known process of managing that relies on goal setting to establish objectives
for the organization as a whole, for each department, for each manager within each
department, and for each employee.
 MBO is not a measure of employee behaviour; rather, it is a measure of each employee’s
contribution to the success of the organization.
 “Management by objectives is a process whereby the superior and subordinate managers
of an organization jointly identify its common goals, define each individual’s major areas
of responsibility in terms of the results expected of him, and use these measures as guides
for operating the unit and assessing the contribution of each of its members

2.8. IMPORTANCE OF PERFORMANCE APPRAISAL

Performance appraisal can be beneficial for all within an organization, as follows-
 For the appraise
- Better understanding of his role in the organization that what is expected and what he need
to be do to meet those expectations.
- Identifying his strength and weakness to develop himself in future.
- Opportunity to discuss aspirations, any guidance, support or training needed to fulfill these
aspirations.
- Improving working relationship with the superiors.
 For the management
- Identification of performers and non-performers.
- To prepare employees for higher responsibilities.
- Improve communication between employees and management.
- Identification of training and development.
- Better formulation of career plans.
 For organization
- Improved performance throughout the organization.
- Creation of a culture of continuous improvement and success.
- Conveyance of massage that people are valued.

2.9. PROBLEMS IN PERFORMANCE APPRAISAL

(a) Judgment Errors:
• First impressions (Primacy Effect): The appraiser’s first impression of a candidate may
color his evaluation of all subsequent behavior. In the case of negative primacy effect, the
employee may seem to do nothing right; in the case of a positive primacy effect, the
employee may do no wrong.
• Halo Effect: The Halo error occurs when one aspect of the subordinate’s performance
affects the rater’s evaluation of other performance dimensions. If a worker has few
absences, his supervisor might give the worker a high rating in all other areas of work.
Similarly, an employee might be rated high on performance simply he has a good dress
sense and comes to office punctually.
• Horn Effect: The rater’s bias is in the other direction, where one negative quality of the
employee is being rated harshly. For example, the rate does not smile normally, so he
cannot get along with people.
• Excessive Stiffness or Leniency: Depending on rater’s own mental make- up at the time
of appraisal, raters may be rated very strictly or very leniently. Appraisers generally find
evaluating others difficult, especially where negative ratings have to be given. The
Leniency error can render an appraisal system ineffective.
• Central Tendency: An alternative to the leniency effect is the central tendency, which
occurs when appraisers rate all employees as average performers. Appraisers rate all
employees as average performers. That is, it is an attitude to rate people as neither high nor
low and follow the middle path. For example, a professor, with a view to play it safe, might
give a class grade near the equal to B, regardless of the differences in individual
performances.
• Stereotyping: Stereotyping is a mental picture that an individual hold about a person
because of that person’s sex, age, religion, caste, etc.
• Regency Effect: In this case the rater gives greater weightage to recent occurrences than
earlier performance. For example, an excellent performance that may be six or seven
months old is conveniently forgotten while giving a poor rating to an employee’s
performance which is not so good in recent weeks.
• Spill over Effect: The present performance is evaluated much on the basis of past
performance. “The person who was a good performer in distant past is assured to be okay
at present also”.
• Opportunity bias: transpires when the manager either credits or faults the employee for
factors beyond the employee’s control. Managers stricken with the opportunity bias praise
or blame the employee when the true cause of the performance was opportunity or a lack
thereof.

(b) Poor Appraisal Forms:

The appraisal process might also be influenced by the following factors relating to the forms
that are used by raters:
- The rating scale may be quite vague and unclear.
- The rating form may ignore important aspects of job performance.
- The rating form may contain additional, irrelevant performance dimensions.
- The forms may be too long and complex.

(c) Lack of Rater Preparedness:

The raters may not be adequately trained to carry out performance management activities. This
becomes a serious limitation when the technical competence of a rate is going to be evaluated
by a rater who has limited functional specialization in that area.

(d) Ineffective Organizational Policies and Practices:

If the sincere appraisal effort put in by a rater is not suitably rewarded, the motivation to do
the job thoroughly finishes off. Sometimes, low ratings given by raters are viewed negatively
by management – as a sign of failure on the part of rater or as an indication of employee
discontent
2.10. LITERATURE REVIEW

Performance appraisal is continuously and incrementally regarded as one of the most important
human resource practice (Boswell and Boudreau 2002). There is multiple research which
indicate that appraisal is not practiced and carried out well, or welcomed in many cases.
 The researcher for her research work had to collect some books and journals on the subject
of study. The term performance appraisal has beautifully described by K. Aswathappa (2008)
that, employees behaviour in the work spot normally normally including both the qualitative
and quantitative aspect of job performance.
Similarly, P. Suba Rao, in his book title- Human Resource Management, defined
that – it is a systematic evaluation of the work performed by the employees.
According to Dessler (2005), performance appraisal means evaluating employees '
current and or past performance relative to his or her performance standards. That is employees
will be assessed after a given period of time what they have been able to achieve by a target
set. This will also help supervisors to know how well their subordinates are performing on their
jobs.
Miller and Thornton (2006) in their article titled "How Accurate Are Your
Performance Appraisals?" state that accuracy of performance appraisals is very important in
public personnel management. they provide "benchmark" data from the research literature.
They also provide a method for correcting error in the data so that practitioners' data may be
more accurately evaluated. They also demonstrate the degree to which multiple raters will
improve the accuracy of appraisals. Finally, they make suggestions as to how the PPM
professional may improve the accuracy of performance ratings based on the research
concerning rating versus ranking performance, the supervisors' knowledge of the employee and
the number if dimensions being appraised.
Minati Biswal, a researcher at NALCO in 2018, in her research stated that-
performance appraisal is not only constricted to rating employees. Organization conduct
performance appraisal as a base for administrative purpose such as promotion, allocation of
monetary rewards, employee growth and identification of training requirements etc.

2.11. SCOPE OF THE STUDY

Without industrial growth, economic progress is not possible, however much the industrial
development may be chaired and achieved through solving various complex problems arise in
the field of labour or human resources in the organizations.
If this field is not given the importance in time, it might lead to peculiar problems
of frequent absenteeism, high labour/ employee turnover, migration and inefficiency of
production work. These bring a sense of frustration among the working class culminating in
various terms.
This study focuses on the existing performance appraisal system of NALCO. The
study covers the execution of performance appraisal system of executives at NALCO. The
views of the executives were taken through primary as well as secondary source.
Performance appraisal is a tool in the hands of management to access the employee
skill towards the organization. Performance appraisal does not merely measure the
performance of the people, but has many other benefits. From the present study, we can better
understand that how the appraisal system of NALCO may be beneficial for different field in
the organization.
CHAPTER-III
METHODOLOGY
 METHODOLOGY
3.1. INTRODUCTION
Research methodology is a way to systematically solve the research problem. It may be
understood as a science of studying how research is done scientifically, thus it involves the
various steps that are generally adopted by a researcher in studying the research problem with
the logic behind them. It has many dimensions which constitute a part of the research and
widens the scope of the research.

3.2. RESEARCH DESIGN

Research design refers to framework or plan for a study that guides the collection and analysis
of data. It involved in carrying out planning, designing, collecting data, analyzing, drawing
meaningful interpretation and reporting of the research findings.
For the attainment of the objectives of the study a content analysis has been used in
the study based on the data collected. NALCO being an industrial establishment depends upon
the conservation, advancement and utilization of its workforce. To conduct any survey a
scientific method must be followed. It is so vast that to have a detail study of the entire
NALCO’S population was not possible. So the researcher selected the executive population
of the company for her research. A simple random sampling method was taken by the
researcher for her survey.

3.3. SAMPLE SIZE

It is difficult to take study on all the employees in NALCO for primary data collection. For the
study and administration of questionnaires in NALCO, the management has given the
opportunity to collect the information only from 80 employees. So a random sampling method
is adopted in order to conduct the study.

3.4. SOURCE OF DATA COLLECTION

The researcher in her project use both primary and secondary source of data. For the purpose
of the primary data, the surveyor has to rely on questionnaires. Expert opinion, observation and
interview of executives has been conducted. The interview comprised of various close ended
questions. The questionnaires were distributed personally among the respondents and were
collected by an informal discussion to get the maximum information about the collected data.
In collection of secondary sources, the instruments used are booklet issued by
NALCO to its executives, NALCO’S yearly report, NALCO records, company publications,
NALCO profile and internet etc.
The researcher also take help from the previous research study and from some
author’s book, who already done research on it for expanding her knowledge.
3.5. STATISTICS ADOPTED FOR RESEARCH ANALYSIS

Data analysis in research is an illustrative method of applying the right statistical or logical
techniques so that the raw data makes sense. Statistical methods involved in carrying out
planning, designing, collecting data, analyzing, drawing meaningful interpretation and
reporting of the research findings.

For the analysis and findings of the study, the researcher used some statistical tools
and techniques such as the variables, arithmetical average of numbers, numerical calculations,
descriptive analysis to obtain a summary of data quickly, exploratory data analysis…etc.
Researcher also take help of some computer tools such as MS word, Excel,
PowerPoint etc. for carrying her research study. These tools and techniques made the study
easy, more accurate and understandable.

3.6. EXPECTED OUTPUT

The aim of this research is to understand the performance appraisal procedure at NALCO, its
effectiveness to the success of organization and how it affects the other management activities
or decision within the organization. From the data collected, the researcher expect that the
outcome will match with the objectives and goals of the study.
CHAPTER-IV
ORGANIZATION PROFILE
 ORGANIZATION PROFILE
4.1. INTRODUCTION

National Aluminium Company Limited (NALCO) is a Schedule ‘A’ Navratna CPSE

established on 7th January, 1981 having its registered office at Bhubaneswar. It is one of the
largest integrated Bauxite-Alumina-Aluminium-Power Complex in the Country. At present,
Government of India holds 51.28% of paid up equity capital. The Company has been operating
its captive Panchpatmali Bauxite Mines for the pit head Alumina refinery at Damanjodi, in the
District of Koraput in Odisha and Aluminium Smelter & Captive Power Plant at Angul. As a
part of green initiative, NALCO has installed 198 MW Wind Power Plants at various locations
in India and 800 kWp roof top Solar Power Plants at its premises to join hands for carbon
neutrality. From the days of first commercial operation since 1987 the Company has
continuously earned profits for last 36 years. NALCO is one of the leading foreign exchange
earning CPSEs of the Country. The Company continues to retain its position of lowest cost
producer in Bauxite and Alumina production in the World in 2022.
Capitalising the market opportunity the Company could achieve high sales realisation,
positively impacting the top line and bottom line in FY 2021-22. Revenue achieved Rs.14,181
crore and Highest ever PAT of Rs.2,952 crore achieved in FY 2021-22.
Even with subdued pricing situation in FY 2022-23, with focus on domestic market
the Company achieved highest ever revenue from operation of Rs.14,255 Crore. However, with
increase in input cost, the PAT achieved was Rs.1,544 crore in FY 2022-23. NALCO achieved
Full capacity Aluminium production of 4.6 lakh tonne, with all 960 POTs in operation in its
Aluminium Smelter for the 2nd consecutive year in FY 2022-23.
The Company has a 68.25 lakh TPA Bauxite Mine & 21.00 lakh TPA (normative
capacity) Alumina Refinery located at Damanjodi in Koraput district of Odisha, and 4.60 lakh
TPA Aluminium Smelter & 1200MW Captive Power Plant located at Angul, Odisha.
The Company has regional sales offices in Delhi, Kolkata, Mumbai, Chennai and 8 operating
stockyards at various locations in the Country to facilitate domestic consumers. In addition,
NALCO has its own bulk shipment facility for export of products.
With its consistent track record in capacity utilization, technology absorption, quality
assurance, export performance and posting profits, NALCO is a bright example of India’s
industrial capability.
NALCO is the first Public Sector Company in the country to venture into international
market in a big way with London Metal Exchange (LME) registration since May, 1989. The
Company is listed at Bombay Stock Exchange (BSE) since 1992 and National Stock Exchange
(NSE) since 1999. Besides, ISO 9001, ISO 14001, ISO 45001, ISO 50001 & SA 8000
certifications, NALCO’s Data Centre at Corporate Office and Disaster Recovery Site at
Alumina Refinery certified for Information Security Management System and awarded ISO
27001:2013 Certification and Accreditation from International Accreditation Services, USA.”
To face the challenges of ever-evolving market and position the Company in a
sustainable growth path, a corporate plan has been developed with well-defined 3 year action
plan, 7 year strategy & 15 years vision of being a Premier and Integrated Company in the
Aluminium value chain with strategic presence in Mining both domestic & global, Metals and
Energy sectors. The Corporate Plan has chalked out a roadmap for multifold growth in revenue
and Profit by 2032.

4.2 VISION: -
To be a Premier and Integrated company in the Aluminium value chain with strategic presence
in Mining both domestic & global, Metals and Energy sectors.
MISSION: -
To sustainably grow multi-fold in Mining in Minerals, Metals and Energy sectors, while
continuously improving on efficiency and business practices, Alumina and Aluminium
business along with select diversification thus enhancing value for all stakeholders.

CORE VALUES:- BEST

Benefitting-stakeholders
We provide our customers, suppliers and other stakeholders with utmost level of value, service
and satisfaction.
Excellence&quality
We ensure that our products, manufacturing & business processes adhere to the highest quality
levels and standards.
Sustainability
We relentlessly pursue sustainable practices and create a positive impact on the communities
we engage with.
Trust&Integrity
We conduct ourselves with dignity, integrity, equity, transparency and accountability to build
trust.
4.3. OBJECTIVES & GOALS :-
 to minimize capacity utilization
 to optimize operational efficiency and productivity.
 To provide steady growth in business by technology up gradation , expansion and
diversification.
 To develop long term relation with domestic and foreign clients and joint venture partners.
 To develop a powerful scientific and technical base. Apart from investment in volume
growth, the company shall substantially finance R&D and modernization of facilities,
laboratories achieving improvements in the quality of product and satisfying customer
demands.
 To maximize value and long term return to shareholders through a strategy of new
investment, cost competitive mines and business driven by the quality of products and
services.
 To faster high standards of health.
 Transform from being only an ‘aluminium producer’ to become a metal producer and
energy provider.
 To adopt main strategic priorities aimed at end user orientation.
4.4. PRODUCTS :-
Main products of NALCO are follows :-
 ALUMINUM METAL
 Ingots
 Alloy ingots
 T-ingots
 Sows
 Billets
 Wire rods
 Cast strips
 ALUMINA & HYDRATE :-
 Calcined alumina
 Alumina hydrate
 ROLLED PRODUCT :-
 Aluminium rolled products
 Aluminium chequered sheets
 POWER :-
 Thermal power
 Co-generation power
 Wind power
 Solar power
4.5. OPERATING UNITS OF NALCO: -
1.BAUXITE MINES-
On Panchpatmali hills of Koraput district in Odisha, a fully mechanized opencast mine is in
operation since November, 1985, serving feedstock to Alumina Refinery at Damanjodi located
on the foothills. Present capacity of Mines is 68.25 lakh TPA. Panchpatmali plateau stands at
elevation of 1154 m to 1366 m above mean sea level. Bauxite occurs over the full length of the
Panchpatmali plateau, which spans over 18 kms.
The Salient Features
• Area of deposit – 16 sq. KM.
• Resource – 310 million tonnes.
• Ore quality – Alumina 45%, Silica 3%.
• Mineralogy – Over 90% gibbsitic.
• Over burden – 3 meters (Average).
• Ore thickness – 14 meters (Average).
• Transport – 14.6 KM long, single flight, multi-curve cable belt conveyor of 1800 TPH
capacity.
2.ALUMINA REFINERY-
The Alumina Refinery is located at Damanjodi, Odisha, approximately 14 KM from the bauxite
mine at Panchpatmali. The mined-out bauxite is transported from captive mine to refinery by
a 14.6 KM long single-light multi-curve 1800 tonnes per hour (TPH) capacity cable belt
conveyor. The alumina produced is transported to aluminium smelter at Angul (Odisha) and to
Vizag (Andhra Pradesh) port by rail. The present capacity of Alumina Refinery is 22.75 lakh
TPA. Alumina produced is used to meet Company’s requirements for production of primary
aluminium at smelter. The surplus alumina is sold to third parties in the export markets.
The Salient Features
• Atmospheric pressure digestion process
• Pre-desilication and inter-stage cooling for higher productivity
• Energy efficient fluidised bed calciners
• Co-generation of 5×18.5 MW power by use of back pressure turbine in steam generation
plant
3.ALUMINIUM SMELTER
The present capacity of smelter is 4.60 lakh TPA. Alumina is converted into primary
aluminium through a smelting process by using electrolytic reduction. From the pot-line, the
molten aluminium is routed to either the casting units, where the aluminium can be cast into
ingots, sow ingots, tee ingots, billets, wire rods, cast strips and alloy ingots, or to RPU where
the molten aluminium is rolled into various cold-rolled products or cast into aluminium strips.
Aluminium products are sold in the domestic market and also exported through Kolkata,
Paradeep & Vizag ports. Nalco acquired and subsequent merged International Aluminium
Products Limited (IAPL), the 50,000 tpa export-oriented Rolled Products Unit with Nalco. The
RPU is integrated with the Smelter Plant at Angul for production of aluminium cold rolled
sheets and coils from continuous caster route based on the advanced technology of FATA
Hunter, Italy. It has also started production of another variety of rolled product named as
chequered sheet with thickness ranging from 0.60mm to 3.0mm.
The Salient Features
• 180 KA cell technology.
• Micro-processor-based pot regulation system.
• Fume treatment plant with dry-scrubbing system for pollution control and fluoride salt
recovery
• Integrated facility for manufacturing carbon anodes, bus bars, anode stems etc.
• Hyper Dense Phase System (HDPS) for alumina feeding.
• 4 x 35 Tone and 4x45 Tonne furnaces and 2x15 TPH and 2 x 20 TPH ingot casting machines.
• 4 x 45 Tonne furnaces and 2 x 9.5 TPH wire rod mills.
• 2 x 45 Tonne furnaces and 60/42 per drop billet casting machine.
• 2 x 1.5 Tonne induction furnace with a 4 TPH alloy ingot casting machine.
• 26,000 TPA strip casting machines.
• 2 x 45 Tonne furnaces and 9 TPH tee ingot casting machine.
• 2 x 45 Tonne furnaces and 20 TPH sow ingot casting facility are being installed.
4.CAPTIVE POWER PLANT-
Presently the Captive Thermal Power Plant has a generation capacity of 1200 MW
(10X120MW). While the captive thermal power plant provides entire electric power
requirement of aluminium smelter, it also feeds for approximately 35 MW of the power
requirement to the alumina refinery through the State Grid. The location of captive thermal
power plant at Angul is also strategic to the availability and supply of coal from nearby Talcher
Coalfields. The 18.5 KM captive railway system links the captive thermal power plant to the
Talcher coalfields, enabling transport of the critical and bulk requirement of coal.
The Salient Features
• Micro-processor-based burner management system for optimum thermal efficiency.
• Computer controlled data acquisition system for on-line monitoring.
• Automatic turbine run-up system.
• Specially designed barrel type high pressure turbine.
• Advanced electrostatic precipitator (99.9% efficiency) to control pollution.
• Wet disposal of ash.
• Zero discharge of effluents.
• High Concentrate Slurry Disposal (HCSD) System for ash disposal.
• High plant load factor.

The water for the Plant is drawn from River Brahmani through a 7 KM long triple circuit
pipeline. The coal demand is met from a mine of 3.5 million TPA capacity opened up for Nalco,
initially at Bharatpur in Talcher by Mahanadi Coalfields Limited. The Power Plant is inter-
connected with the State Grid.

5.ROLLED PRODUCTS UNIT-

Nalco has set up a 50,000 MT per annum Rolled Products Unit, integrated with the Smelter
Plant at Angul, for production of aluminium cold rolled sheets and coils from continuous caster
route, based on the advanced technology of FATA Hunter, Italy.
6.PORT FACILITIES-

On the Northern Arm of the Inner Harbour of Visakhapatnam Port on the Bay of Bengal, Nalco
has established mechanized storage and ship handling facilities for exporting Alumina in bulk
and importing Caustic Soda.
The Salient Features
• Maximum ship size for loading Alumina: 40,000MT DWT
• Maximum Alumina loading rate: 2,200 TPH (Avg. 1,500 TPH)
• Receipt of Alumina from Damanjodi by: Rakes consisting 48 (x53 MT) BTAP wagons.
• (Two) numbers of BTAP wagon unloading stations by pneumatic means.
• Alumina storage capacity: 3 x 25,000MT RCC Silos.
• Caustic soda Lye storage capacity: 3 x 10,000LMT.
• Maximum caustic soda unloading rate from ship: 600LMT / Hr
• One Caustic Soda wagon (BTCS) loading station.
• Despatch of Caustic Soda lye to Damanjodi by: Rakes consisting 58 (x55MT) BTCS wagons.

7.WIND POWER PLANTS-

The 1st wind power plant of capacity 50.4 MW (2.1MW, 24 nos. WEGs) in Gandhikota,
Andhra Pradesh was commissioned in December 2012 and the 2nd wind power plant of
capacity 47.6 MW (0.85 MW, 56 nos. WEGs) at Ludarwa site, in Jaisalmer, Rajasthan was
commissioned in Jan’2014. 3rd wind power plant of capacity 50 MW (2 MW, 25 nos. WEG)
at Devikot site, Jaisalmer, Rajasthan and a 50.4 MW (2.1MW, 24 nos. WEGs) Wind Power
Plant at Sangli, Maharashtra commissioned in FY 2016-17.

8.SOLAR POWER-
NALCO utilised the entire available roof top space in Corporate Office, Township and NRTC
at Bhubaneswar for setting up of 310 kWp solar power plant.

9.NRTC TESTING SERVICES-

National Aluminium Company Limited (NALCO) has set up a new State- of-Art Research
Centre, spread over 18.21 acres of land namely Nalco Research & Technology Centre (NRTC)
at Gothapatana, Bhubaneswar equipped with all advance modern testing facilities. NRTC
offers testing services for wide range of samples for external clients on chargeable basis.
Facilities And Analysis Charges
• Elemental Analysis
• X-Ray Analysis
• Particle size and Surface Area Analysis
• Microscopic Techniques
• Thermal Analysis
• Coal, Coke, Fuel Analysis
• Mechanical Testing
• Physical Properties
• Water/ Waste water/Aluminate Liquor Analysis
• Sample Preparation
4.6. HUMAN RESOURCES: -
Mapping the company, there are 5056 persons possessing a variety of skills, qualifications and
competence. The company is truly youthful with the average age of the employees being below
54 years. Starting with a core group of 262 employees in 1982, the progressive growth in
manpower had taken place in a planned manner, matching the needs of the different stages of
the project. present strength of 5056 as on August, 2023 is close to optimum requirement
against existing capacity.

4.7. AWARDS & ACHIEVEMENTS:-

 First mines safety award: March 1998
 CAPEXIL Export Award: 1988To1999
 LME Registration: May 1989
 Star Trading House Status: January 1992
 ISO 9002 Certification
Alumina Refinery: November 1994
 Smelter Plant : February 1994
 Captive Power Plant : December 1995
 Bauxite Mines : January 1996
 CITD Special Gold Award: September 1994
 Best Exporter’s Award : November 1994
 Safety Award For Eco-Friendly Factor : March 1995
 Rajiv Gandhi Memorial National Award : July 1996
 Indira Priyadarshini Vrikshamitra Award : September 1994
 Environment Management Certificate To ISO: September 1996
 Engineering Export Promotion Council (EFPC)Award: December 1997
 Best Annual Report Prize By Public Sector Public Relation
Forum: August 1999
 FICCI Award For Pollution Control And Environment : 1996-1997
 Indira Gandhi Puraskar By Government Of India : 2000
 NALCO Achieves Navaratna Status : 2008
 Best Listed CPSE Award From Prime Minister : 2010
4.8. SWOT OF NALCO: -
Strength:
 Availability of huge deposit of bauxite
 Huge power production.
 Low energy consumption.
 Maintenance of production and quality of metal production.
 Presently the market leader.
 High profitability leader.
Opportunity:
 Growth of the potential domestic market.
 Widespread uses of alumina for various purposes.
Threat:
 Instability of the LME prices.
 High task rate imposed on the metal
 Devaluation of the rupee leading of the increased of debt amount.

4.9. GLOBAL LINKAGES: -

NALCO has a strong global presence. The company today has a boast of customers in more
than 50 countries world-wide. NALCO has its contents with regards to the technological
association with the country named USA, France, UK, Germany, Hong Kong etc. With regard
to Aluminium export the countries are Belgium, UK, Switzerland, Bangladesh, Singapore, Sri
Lanka, Italy, Saudi-Arabia, Pakistan, Thailand, Indonesia, Dubai, Myanmar. With regard to
Alumina export the countries are USA, Brazil, Norway, France, UK, Egypt, Bahrain,
Switzerland, Indonesia, Hong Kong, Australia, Japan, North Korea, Russia, China, Dubai,
Finland, Philippines, Iran etc.

4.10. NALCO TODAY: -

Today NALCO is considered to be during point in the 50 years old history of Indian Aluminium
Industry. in a major leap forward, Nalco has not only addressed itself to the country’s need for
self-sufficiency in Aluminium but has also given the country, the technology edge in making
this strategic metal on the best of the world standards with this consistent track record in
capacity utilization, technology absorption, quality assurance, export performance, serving of
loans, internal resource generation & posting of profits. Now Nalco has emerged as the largest
integrated Bauxite Alumina Aluminium Complex in Asia, evading India to witness a quantum
jump in Alumina - Aluminium production. Nalco for the first time created exportable surplus
in Alumina and help to focus on his massive Bauxite resources in the East Coast estimated at
1600 million tons for setting up export-oriented Alumina Plants. Today Nalco is created with
best technology-based self-sufficiency international orientation, regional development and
environmental care, accent on future growth and above all a committed work force.
 COMPANY DETAILS

Name: National Aluminium Company (NALCO)

Location: Orissa

Registered Office: Bhubaneswar

Regional Office: Bangalore, Chennai, Visakhapatnam, Mumbai, Kolkata, New Delhi.

Ownership Pattern: A Wholly Government of India Company

Main Promoter: Ministry of Mines, Govt. Of India

Chair Man: Shri Sridhar Patra

Foreign Collaboration: A/S Aluminium Pachinery, France, Paris

Production Canter: Damanjodi, Angul

Port Facilities: Paradeep, Chennai, Visakhapatnam

Iso_9002: Alumina Refinery (Nov94)

: Smelter Plant (Feb 95)
: Bauxite Mines (Jan95)

Iso_14001: Bauxite Mines (Jan 96)

: Alumina Refinery (Feb 97)
: Cpp (Dec 97)
: Smelter Plant (May 98)

Nature of Business: Mining & Manufacturing In The Aluminium

Sector Other Areas of Business: Captive Power Plant, Rail Transport System
 CHAPTER-V
DEMOGRAPHIC PROFILE OF RESPONDENTS
 DEMOGRAPHIC PROFILE OF RESPONDENTS
5.1. GENDER WISE CLASSIFICATION OF RESPONDENTS

Gender No. of Respondents Percentage

Male 64 80
Female 16 20
Total 80 100

TABLE 5.1 GENDER WISE CLASSIFICATIONS OF RESPONDENTS

FIGURE 5.1 GENDER WISE CLASSIFICATIONS OF RESPONDENTS

INTERPRETATION:

From the above table, it can be inferred that 80% of the respondents are Male and
20% are Female.

5.2. AGE WISE CLASSIFICATION OF RESPONDENTS

Age No. of Respondents Percentage (%)
20-30 Age 28 35
31-40 Age 25 31.25
41-50 Age 17 21.25
51-60 Age 10 12.5
Total 80 100
TABLE 5.2. AGE WISE CLASSIFICATIONS OF RESPONDENTS
 FIGURE .5.2EXPERIENCED WISE CLASSIFICATION OF RESPONDENTS

INTERPRETATION:

From the above table it can be inferred that 35% of the respondents are in the age of 20-
30 age. 31.25% of the respondents are 31-40 age.21.25% of the respondents are 31-40
age and 12.5% of the respondents are 31-40 age.

5.3.EXPERIENCE WISE CLASSIFICATION OF RESPONDENTS

Experience No. of Respondents Percentage

Below 5 years 28 35
6-10 Years 34 42.5
11-15 Years 18 22.5
Above 15 Years 0 0
Total 80 100
TABLE.5.3 EXPERIENCED WISE CLASSIFICATION OF RESPONDENTS

FIGURE .5.3 EXPERIENCED WISE CLASSIFICATION OF RESPONDENTS

 INTERPRETATION:

From the above table it can be inferred that 35% of the respondents are having less that 5
Years of experience. 42.5% of the respondents are having 6-10 Years ofexperience.
22.5% of the respondents are having 11-15 Years of experience.

5.4.EDUCATIONAL QUALIFICATION OF RESPONDENTS

Educational No. of Respondents Percentage (%)

Qualification
UG Degree 43 53.75
PG Degree 19 23.75
Engineering 10 12.5
Other ITI 8 10
Total 80 100

TABLE 5.4 EDUCATIONAL QUALIFICATION OF RESPONDENTS

FIGURE 5.4 EDUCATIONAL QUALIFICATION OF RESPONDENTS

INTERPRETATION:

From the above table it can be inferred that 53.75% of the respondents are UG
holders,10% of the respondents are some other (ITI), 23.75% of the respondentsare PG
holders and 12.5% of the respondents are engineering graduates.
5.5. INVOLVEMENT IN DESIGNING APPRAISAL SYSTEM

Opinion No. Of Respondents Percentage (%)

Always 0 0
Sometime 0 0
Never 80 100
Total 80 100
TABLE 5.5. INVOLVEMENT IN DESIGNING APPRAISAL SYSTEM

INTERPRETATION:

From the above table, it can be inferred that 100% of the respondents say they arenever
involved in designing the appraisal system.
CHAPTER-VI
ANALYSIS OF THE STUDY
 6.1 ANALYSIS OF INDIVIDUAL PERFORMANCE APPRAISAL AT NALCO:
There are two different types of appraisal system existing in nalco for the executives and non
executive. As already mentioned, the entire population of the organization is so vast, in this
study the researcher only focuses on executives performance appraisal system. For the
appraisal process nalco use the modern method of performance appraisal.

6.2. ANNUAL PERFORMANCE APPRAISAL OF EXECUTIVES IN NALCO :

It has been decided to modify the system of annual appraisal in respect of executives w.e.f. 1st
april 1995 inorder to achieve the objectives of nalco. Nalco practiced the following
performance appraisal for executives :-
01. Pre-Appraisal target setting: The reporting officer is required to set targets and tasks
against a time Schedule and as possible in quantitative terms in consultation with the
executives whose performance he is required to evaluate. This exercise is undertaken at the
beginning of the year.
02. Self-Appraisal: Where you are to furnish data on your achievement of targets/objectives,
perceived shortfalls with reasons and your own training and development needs.
03. Review Discussion: Reporting Officer holds a session of discussion every quarter with the
appraise to discuss the performance against targets, shortfalls, shortcomings.
04. Weightage Factors: In evaluating technical, conceptual and human relation skills of an
executive, different weight age factors are assigned depending in the level of the executive.
05.
05. Time-Bound: The period of appraisal or the appraisal year coincides with the financial
year. The Reporting Officer must complete appraisal writing by 20th April every year then
through time bound stages the completed report must reach corporate HRD Department on
or before 15th May.
06. Wider Participation in Appraisal Exercise: Apart from Report and Reviewing Officer
each executive appraisal report is seen, commented upon and countersigned by principal
HOD and Head of the units. ( The Executive Performance Appraisal System under the
revised will relate to a financial year.

6.3. THE APPRAISAL FORM CONSIST OF FOLLOWING PARTS :

Form description of appraisal process

A PERFORMANCE TARGET SETTING EXERCISE
B TASK AND TARGET ASSIGNED FOR THE YEAR
C QUATERLY PERFORMANCE REVIEW
D1 ANNUAL TARGET ACHIEVEMENT APPRAISAL
D2 MANAGERIAL SKILLS APPRAISAL (PERFORMANCE FACTOR)
D3 MANAGERIAL SKILLS APPRAISAL (POTENTIAL FACTOR )
E TRAINING NEED IDENTIFICATION
F FINAL ASSESSMENT
1. FORM"A":-(Performance Target Setting Exercise): -The Reporting Officer will inform
the appraise about the Department /Section's objective and targets with references to the
internal MOU of the unit and hand over Form A.The appraise will identify a set of key task
for the year and key performance areas and fills up Form A which is only exercise sheet,
to furnish asset of key task with frame and relative weight age.

2. FORM"B":- The Reporting Officer and Appraisal will mutually agree to a set key task
for the year, link each key task with suitable timeframe and assign relative weight ages and
finally filling up Form B and sign it. This from is also countersigned by the reviewing
officer for his acceptance.

3. FORM"C":-the new EPA's envisages four quarterly performance reviews wherein

Reporting Officer and Appraise review performance, record level of achievement, reason
for variation and details of special task of assigned

4. FORM "D":-Annual Target Achievement Appraisal is done by the Appraise which is

shown to the appraise and his signature is taken. Subsequently the Reviewing Officer
makes his observation at the space provided for in From D1.

5. D2 & FORMM D3 [Managerial Skill Appraise, Performance and Potential Factor] :-

Each Appraise will be appraised on Managerial Characteristics (traits) Le. six performance
factors and nine potential factors at the end of the year. It is suggested that a record of
specific incident be kept separately by the Reporting Officer (both positive and negative
incidents) to the extent possible for removing subjectivity. Performance Factors (Skills
required for performance) will be rated in From D2 and potential Factors (Skill required
for growth will be rated in From D3 by Reporting Officer, Reporting (Functional),
Reviewing Officer, each of them will have 50%, 25%,25% weight age respectively In
absence of Reporting Officer (Functional) the weight age will be assigned at 50% each.

6. FORM "E":- In this form, the appraisal identifies his training needs and records the details
of program with justification . The reporting officer holds discussion with appraisee and
records his recommendation on rtaining needs giving the respective code available from
the training handbook circulated by hrd department.

7. FORM “F”:- The appraisal cell at the corporate office is to calculate the rating given by the
reporting officer (functional) and reviewing officer and fills up final score and final overall
grade of the appraise in form F.

6.4. LEVEL OF REPORTING OFFICER, REVIEWING OFFICER, HIGHER

AUTHORITY
 In the appraisal process of nalco, form –A to form-C summery has alreay mentioned above.
The actuall analysis of appraisal starts from the form-D . now, the detailed analysis from the
form –D is described as follwes:-
AN EXAMPLE OF INDIVIDUAL EXECUTIVE APPRAISAL PROCESS IS DESCRIBED BELOW:-
Sambit ku. panda
After the evaluation of D-1 D-2 and D-3 form the reporting officer, (functional )and reviewing
officer are give their signature and advised not to make any calculation of the scores. All the
scores will be computed by appraisal cell, corporate office or units.
 NATIONAL ALUMINIUM COMPANY LIMITED
FINAL ASSESSMENT FOR THE PERIOD APRIL 2017-MARCH 2018 FORM-E

Sambit ku.Panda Designation : Deputy General

Manager(Marketing)
Personal No.: Dept : Unit
:
A . ALLOCATION OF WEIGHTAGES

Level Targets (x) Performance Factors Potential Total (x + y + z)

(y) Factors (z)

Junior E0 to E3 55 2 20 1
5 0
0
Middle E4 to E6 45 2 30 1
5 0
0
Senior E7 to E9 30 3 40 1
0 0
0
B. TABLE FOR DETERMINATION OF OVERALL GRADE

Overall g r a d e

Above 90% Outstandin A+

g
Above 80% & upto 90% Excellent

Above 70% & upto 80% Very Good B+

Above 60% & upto 70% Good

Above 50% & upto 60% Fair C+

Below 50% Poor

C. CHART FOR CALCULATION OF FINAL SCORE

Sl no. Subject Weightage Score Final score

1 Target achievement 45.00 0.94 42.38

(D1)
2 Performance factor 25.00 0.91 22.63
(D2)
3 Potential factor(D3) 30.00 0.90 27.07

TOTAL 92.08

D. Whether the case is to be referred to the rationalization committee.

Yes /no
E. Final overall grade and score of the executive ……………………………?
Signature of Officer of Appraisal Cell Counter Signature of Officer-in-charge of Appraisal Cell
Date : Date:
 THE IMPACT OF PERFORMANCE APPRAISAL ON THE PERFORMANCE
RELATED PAYMENT(PRP) FOR THE LAST 3 YEARS

Payment given 2019-20 2020-21 2021-22

100 – Outstanding 10% 14.5% 15%

80 – Excellent 65.6% 65.5% 68.9%

60 – Very good 15% 11% 10.2%

40 – Good 5.8% 6% 4.5%

NIL- Fair 3.6% 2.3% 1.4%

NIL- Poor NIL 0.7% NIL

INTERPRETATION

Form the above table the researcher found that most of the executive employees i.e
approximately 66% are doing excellent performance every year and according to that they
are given 80% of performance related payment.
 CHAPTER VII
CONCLUSION, FINDINGS, SUGESSION
7.1. CONCLUSION
To describe the impact of performance appraisal on the work culture is very much large. Proper
training and well development of each and every employee is needed for overall costumer
orientation and customer satisfaction. Performance appraisal is the blood and bone of an
organization, without which the entire organization collapses and is ruined. Thus, to conclude
effective measures must be taken to eliminate the demerits & give importance to the areas
highlighting for improvement in the response from the officers towards moving to perfection
in evaluating the performance of employees. An organizational environment must be created
such that people are comfortable in receiving comments about their work. The comments
should be used as an aid to help each person to do a better job. There must be a procedure for
taking action on suggestions. If management cannot act on suggestions in an established &
appropriate amount of time, employees will no longer feel that it is worth their time. A system
of recognition must be established for those who contribute valuable suggestion for the
company.

7.2. FINDINGS
1. Majority (80%) of respondents are male.
2. Most of the respondents (31%) belong to the age group of 31 to 40.
3. 43% of the respondents have above 6 to 10years of work experience.
4. Majority (54%) of the respondents are under graduates.
5. All of the respondents have under gone performance appraisal program once in a year.
6. 100% of the employees interpret the reason for conducting performance appraisal includes
all the factors such as to identify motivating methods, to decide monetary benefits and identify
barriers for performance.
7. For 84% of the respondents performance appraisal was conducted during working hours.
8. For 68% of the respondents the performance appraisal is conducted by Superiors.
9. Once in a year the meeting is scheduled for all employees to discuss their performance.
LEARN LEAP LEAD
10. 75% of the respondents feel that performance appraisal is related to organizational goals
to some extent.
11. All of the respondents infer that they are never involved in designing the performance
appraisal system.
12. 83% of the respondents feel that the performance appraisal system is developed highly
relevant to the employee's job.
13. All respondents mostly share their opinion and suggestions freely during the 54
performance appraisal.

14. All respondents have got the training to fill up the performance appraisal forms.

15. All of the respondents feel that the appraiser is not aware of the jobs and duties of the each
and every employee.
 16. Most (38%) of the respondents feel that the raters are less involved whit appraising
employees.
17. Most (73%) of the respondents says the Performance Appraisal is prope executed in the
organization.
18. Majority (55%) of the respondents feel that performance appraisal system is reviewed and
updated occasionally.

7.3 SUGESSION
1. Objective of conducting the performance appraisal could be discussed and doubts can be
clarified.
2. Performance appraisal could be updated regularly to match individual and organizational
goals.
3. Suggestion could be obtained from employees regarding framing the performance appraisal
system.
4. The appraiser must be familiarized with the employee's job responsibilities and duties before
conducting performance appraisal.
5. Feedback on performance could be discussed through formal or informal meetings.
6. Appropriate and experienced appraiser can be appointed for effective performance appraisal
results.
7. Performance appraisal can be developed so as to identify the hidden talent and skills of
employees ARNE LEAR LEAD
8. Appraisal feedback is very important in any performance appraisal program. It could be
carefully communicated by making high performers increase their target and low performers
to build up their confidence.
9. The Performance Evaluation Process should start before one month. It will help in proper
analysing of the employee performance.
 ANNEXURE –I
BIBLIOGRAPHY

 P. SUBBA RAO (HUMAN RESOURCES MANAGEMENT AND

INDUSTRIAL RELATIONS)
 V.S.P. RAO (HUMAN RESOURCES MANAGEMENT)
 ASWATHAPA (REMAN RESOURCES AND PERSONNEL
MANAGEMENT)
 BOOKLET AND STUDY MATERIALS OF NALCO
 ANNUAL REPORTS OF NALCO

SEARCH ENGINE

 Www.nalco.com
 www.google.com
 Https://chat.openai.com
 ANNEXURE –II
QUESTINAIARE
1.What Is Performance Appraisal from Your Point of View?

I. An annual ritual
II. A management gimmick
III. An evaluation process

2. What Should Be the Basic Thrust in The Current Appraisal System?

I. Performance
II. Experience & seniority
III. Performance with personality traits & managerial skill

3. Who Sets the Goal and Targets of the Performance Appraisal System in NALCO?

I. Reporting officer
II. Reviewing officer
III. Both

4. Are the performance targets that are set explicit in nature?

I. Yes
II. No
III. Can’t say

5. At what time interval the performance appraisal will be carried on?

I. Monthly
II. Every quarter
III. Every six month
IV. At the end of the year

6.The purpose of of performance appraisal will be carried on?

I. Determining salary increment

II. Deciding promotion
III. Identifying candidates for succession plan

7. what source of information used by appraisers to judge the performance of an apprise?

I. Periodic reports in prescribed forms

II. The superior relies on his memory
III. Discussion with subordinates and other managers
IV. Subordinates is asked to make a self-appraisal
8. Guidelines that are provided to help while conducting performance appraisal are?

I. Very specific and helpful

II. Too general
III. No guidelines are provided

9. what factors considered while approaching for the performance appraisal?

I. Job factor
II. Potential factor
III. Performance factor
IV. All the factor

10. You Feel the Performance Appraisal Review Meeting with The Appraiser?

I. Very useful
II. Are done only as a formality
III. Moderately useful

11. Should Appraisal Be Done More Frequently?

I. Yes
II. No

12. How Satisfied Are You with The Current Appraisal System?

I. Very satisfied
II. Satisfied
III. Neutral
IV. Not satisfied

13. Is The Appraisal System Fair?

I. Yes
II. No

14.Do you believe that a PMS can assist you in setting an achieving relevant objectives?

I. Yes
II. No

15. Do you think your leadership and interpersonal skills are developed during the PMS?

I. Yes
II. No

16. Do you think NALCO using the right method to measure the employee performance?

I. Yes
II. No
 17.Do the promotions strictly based on performance appraisal process?

I. Yes
II. No

18. Is there any conflict arise between the employees after performance appraisal is made?

I. Frequently
II. Often
III. Sometimes
IV. Never

19. Do You Suggest to Change the Current Appraisal System?

I. Yes
II. No

20.Whether Performance Appraisal Has Led to Improve Profitability and More Positive Attitudes
Towards Profit Orientation?

I. Strongly agree
II. Agree
III. Can’t say
IV. Disagree
V. Strongly disagree
 ANNEXURE –III
ADDITIONAL PHOTOGRAPHS

ALUMINA REFIENARY PRODUTS

SMELT ER PLANT ALIMINA

WIND AND SOALAR POWER MANUFACTURING

PORT AND RAIL FACILITIES NALCO BHAWAN