PROJECT TOPIC

Performance appraisal- Employees with special

reference to Indian Oil Corporation Ltd

1. INTRODUCTION TO

PERFORMANCE APPRAISAL

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 1.1. INTRODUCTION

What is Performance Appraisal?

A “Performance Appraisal” is a process of evaluating an employee’s

performance on jobs in terms of its requirements or we may call it a postmortem

of a subordinate's performance by his superior during a predetermined period of

time, often the proceeding year.

It is systematic evaluation of the individual with respect to his or her

performance on the job and his or her potential for development for growth.

According to Hegel-

“ It is the process of evaluating the performance and qualification of the

employee’s in terms of the requirements of the job for which he is

employed, for the purpose of administration including placement, selection

for promotion, providing financial reward and other actions which requires

differential treatment among the member of a groups as distinguished

from action all members equally.”

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 1.2. OBJECTIVE OF PERFORMANCE APPRAISAL

➢ The aim of performance appraisal is to encourage employees to set his

objectives for the next time period following his past performance in order

to improve his performance on the job.

➢ These objectives should be mutually agreed, for twelve months, as far as

every employee should be aware of transaction objectives, since they

provide a basis for individual’s performance objectives.

➢ The other basis is the appraisal on the wish of employee himself, in order

to set worthwhile objectives, it is necessary.

➢ Objectives of Appraisal includes effective promotions and transfers,

assess training needs etc.

➢ These objectives are appropriate as long as the approach in individual.

Appraisal in future would assume system orientation.

➢ In system's approach, appraisal aims at improving the performance

instead of merely assessing it.

➢ Emphasis is not on individual assessment, rewards or punishment, but it is

on how the work system affects the individual performance.

1.3. ADVANTAGES OF PERFORMANCE APPRAISAL

Performance Appraisal replaces casual expert with formal, systematic

procedures. Employees know they are being evaluated and are told the criteria

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that will be used in the course of arrival. It offers competitive advantage to a firm

by improving performance, help making correct decisions, ensuring legal

compliance, minimizing job dissatisfaction & employee's turnover and ensuring

consistency between organizational strategy and behaviour.

In BARS method, employee’s behavior is measured. This method aims at

specific dimensions of job performance. It is said to be behaviorally anchored as

the scale represent a range of descriptive statements of behavior varying from

the least to the most effective.

1.4. MULTIPLE USES OF PERFORMANCE ASSESSMENT

GENERAL APPLICATIONS SPECIFIC PURPOSES

Developmental Uses: 1. Identification of individual needs.

2. Performance feedback.

3. Fixing transfers and job assignments.

4. Identification of strength and Weakness.

Administrative Uses: 1. Salaries.

2. Promotion.

3. Retention, Termination.

4. Layoffs.

Organizational 1. HR Planning

Maintenance 2. Determining training needs.

Objectives: 3.Evaluation of organizational goal achievement.

4. Evaluation of HR systems.

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Documentation: 1. Help meeting legal requirement.

1. Useful for future research.

2.

1.5. IMPORTANCE AND PURPOSE

Performance Appraisal has been considered as a most significant and

indispensable tools for an organization. It is highly useful in making decisions

regarding various personal aspects such as promotion and incentives to be

given.

Accurate information plays a vital role in organization as a whole. They

help to pinpoint weak areas in the primary system (e.g. Marketing, Finance and

Production).

It is easy for manager to see which employee's need for training or counseling

because jobs are grouped by categories.

If valid performance data are available; timely, accurate, objectives,

standardization, and relevant management can maintain consistent promotion

and compensation policies throughout the total system.

 To effect promotions based on compensation & performance.

 To confirm the services of probationary employees upon whether they are

completing the probationary period satisfactorily.

 Access the training and development needs of employees.

 To decide upon a pay rise.

 To let the employees know, where they stand so far, as their performance

is concerned and to assess them with constructive criticism and guidance

for the purpose of their development.

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 To improve communication.

 To evaluate whether HR programs such as selection, training, transfers

are being effective or not.

1.6. APPRAISAL PROCESS IN GENERAL

Objective of Performance Appraisal

Establish job expectation

Design an Appraisal Program

Appraise Performance

Performance Interview

Use Appraisal data for appropriate

purpose

Chart 1.6

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 1.7. WHAI IT ACHIEVES?

Performance Appraisal system aims at achieving the following objectives

of employee’s development:

1. Training and Development of individuals.

2. Improving efficiency and effectiveness.

3. Involvement of the review in his self-development.

4. To lay basis for maximum objective advancement/promotion.

5. To lay basis for career planning.

6. To identify exceptional talents for special assignment.

7. To understand the strengths and weaknesses of the subordinates and

help them to realize this.

8. To understand the difficulties of their subordinates and try to remove them.

9. To encourage subordinates to accept more responsibilities.

10. To help the subordinates to become aware of the prevailing conditions.

11. To help subordinates to acquire new capability.

Performance Appraisal is common in government as well as in private

sector in the form of “Annual Confidential Reports”. However in private industries

more systematic performance appraisal also called “Merit Rating or Employee

Rating” has been developed .

These appraisals are often needed as a basis of selecting candidates

for promotion for better jobs; hence, sometime it may also be called

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“Potential Appraisal”. There are also so many methods of performance

appraisal and out of them three are major namely;

➢ The free report

➢ The checklist

➢ The analysis of critical incidents

An appraisal might ask from the assigning officer to consider the following

attributes and characteristics:

(a) Knowledge of skills/formal qualifications, utilized during the review period.

(b) Abilities to delegate/plan supervision.

(c) Personal qualities; appearance, personality, deposition, enthusiasm,

compatibility with colleagues, physical makeup, health.

(d) Establish priorities, assume responsibilities, cope with stress,

exercise/leadership.

(e) Critical analysis like creativity, judgmental, problem solving and decision

taking abilities.

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1.8. METHODS/TECHNIQUES OF PERFORMANCE

APPRAISAL

Broadly there are some following appraisal techniques :-

1.8.1) RATING BY SUPERVISOR :-

a) This can be done by several methods like graphic rating

scale, under it; each person is rated with the help of printed form.

The rater can mark at any point on the scale according to his

evaluation.

b) In forced distribution system, the employees are rated only

on two characteristics i.e. job performance and profitability.

c) In ranking, it involves arranging individual in order of the

merit for particular characteristics.

d) In free written rating, the supervisor describes the

subordinate's performance and feels how good it is. This method is

simple but time consuming.

e) In forced choice appraisal, there are some choice and

superior are asked to give one choice which best suits the

subordinate.

f) In critical method, the appraiser makes rates of the positive

instances on the job performance as well as indicates instances

soon after the event had occurred.

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 1.8.2) RATING BY SELF OR GROUP:-

In self-appraisal a person appraises himself on a form provided and

in group appraisal; a group of persons appraises an individual.

1.8.3) THE FIELD REVIEW TECHNIQUE:-

In this method, a personnel man goes to the field to obtain

information about the work of the individual employee. He asks questions

and informally converse with appraiser of the persons who are being

evaluated. Replies or answers are noted by the personnel man. It does not

include any paper work and is linked to the appraiser

1.8.4) APPRAISAL USING PERFORMANCE STATISTICS:-

In recent times quantitative methods are being supported for rating. Here

standards of performance are used for appraisal, subordinates may be made

profit centers and their performance is appraised as per their achievements.

Standards are prepared for each activity.

1.8.5) FORCED CHOICE METHOD:-

It contains a series of group of statements and the rater checks out

effectively the statement describing each individual being evaluated. Contents of

both the statements may be positive or negative. Though both of them describe

the feature of an employee, the rater is forced to mark only one, which appears to

be more descriptive.

1.8.6) MANAGEMENT BY OBJECTIVE (MBO):-

MBO has become a popular method of planning, setting standards,

motivating and appraising performance. MBO makes comparative assessment

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of multiple personnel rather difficult while in traditional methods all persons are

rated on common factors.

In MBO each person will have different set of goals of non-comparable

complexity and difficulty of accomplishment. Management may make various

decisions on a comparative basis.

1.8.7) 360-DEGREE FEEDBACK:-

360-Degree method provides a wider perspective about an

employee’s performance. In such a method, employee is evaluated by

himself, his peers, his superiors and his subordinates too. This brings

with it a circular assessment of the individual.

1.8.8) BEHAVIORALLY ANCHORED RATING SCALE:-

These are rating scales whose scale points are fixed by

statement of effective and ineffective behavior. They represent a range of

descriptive statements of behavior varying from least to most effective.

Scales are anchored by description of actual job behavior.

1.8.9) ASSESSMENT CENTRES:-

It is a central location where manager come together to have

participation in job related exercises evaluated by trained observer.

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2. NEED FOR THE STUDY

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PERFORMANCE APPRAISAL IN IOCL

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t, o Pne rf o r m a n c e G ro u p
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Chart 2.1

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 2.1. PERFORMANCE APPRAISAL FOR OFFICERS IN

IOCL, MATHURA

Performance appraisal for officers in IOCL is done through electronic

means, that is, ePMS. It’s an online system available, which helps in rating the

performance of the officers which are having the combined efforts of the

appraisee, appraiser, reviewer and finally the countersigning officer.

2.1.1. OBJECTIVES OF EPMS:-

• Creation of high performance orientation at IndianOil.

• Stronger alignment of individual performance with organizational

goals.

• Higher degree of transparency, uniformity and process efficiency.

• Performance ownership at the employee level.

2.1.2 EPMS:-

The unique system of managing performance appraisal in IOCL. It looks

upon the ways to appraise the executives ie “The officers”

2.1.3 APPRAISEE:-

Every officer whose performance is assessed under PMS.

2.1.4 APPRAISER:-

Every Officer who assesses the performance of one or more Appraisees

that report to him/her.

2.1.5. COMPETENCY:-

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 Skills and abilities described in terms of behaviors that are coachable,

observable, measurable and critical to individual performance.

2.1.6. COUNTERSIGNING OFFICER:-

The final signing authority in an individual's performance appraisal

process.

2.1.7. CASCADE:-

The process of sequentially breaking down organizational objectives and

targets into those of various levels of the organization. The individual KRA’s (Key

Result Areas) would also include KRA's over and above these cascaded ones

such as applicable to divisions, units, functions, areas and individuals.

2.1.8. KEY RESULT AREA (KRA):-

Critical achievements required to deliver IndianOil's desired business

results. Typically they are outcomes that directly contribute to IndianOil's MoU,

strategic objectives and/or operational goals. They are usually measurable and

verifiable.

They are mainly of three types:-

a) Role-Based KRAs:-

KRAs those are predetermined for a role in role profile.

b) Additional KRAs:-

KRAs that are predetermined for other roles in the organization, and

the officer can choose from among these if s/he finds necessary.

c) Special KRAs:-

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 KRAs are to be written by the Appraisee, in case required in his/her

performance plan based on special projects or membership of task forces,

committees etc.

2.1.9. ERFORMANCE PLAN:-

A description of KRAs, KPIs

P(Key Performance Indicator) and their targets expected to be accomplished

during the performance period. Performance period is the period for which

performance is being planned, reviewed or evaluated.

2.1.10. PMS TOOLS:-

Tools developed within PMS to facilitate effective usage: Roles, Stretch, Rating

Scales, e-Enabled PMS, Performance Diary etc.

2.1.11. RATING SCALE:-

5-point scale used to define and assess level of achievement on an element.

2.1.12. REVIEWER:-

Typically the appraiser’s appraisal, who is responsible for reviewing the entire

performance process

2.1.13. FINAL SCORE:-

Overall score calculated by multiplying each section score with the weightage

and the summiting the same. The score is validated by the Reviewer.

2.1.14. STRETCH:-

The degree of difficulty built into targets at the time of Performance Planning.

2.1.15. TARGET:-

A measurable and verifiable definition of outcomes to be accomplished.

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 2.1.16. UNIQUE ROLE (UR):-

Jobs that are held by different individuals but are similar in terms of

objectives and outcomes.

2.1.17. WEIGHTAGE:-

The percentage value (out of 100%) allocated to a KPI or a section on the

basis of the criticality, time and effort required.

2.1.18. PERFORMANCE DIARY:-

A tool for the Appraisee to record significant events or aspects of

performance which may be used for performance discussions/review.

2.2.) What is ePMS?

• This is the online version of the performance management system. It

would help manage performance of officers in the organization

• All unique roles are fed into the system and all officers are mapped to

corresponding roles

• The system is used for planning performance as well as monitoring and

appraising performance.

2.2.1.) Why e enablement?

• PMS seeks to determine individual performance and potential through a

system that is:

– Objective

– Transparent

– Aligned to the Business needs

– Robust

– Easy to Use and Manage

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 Each of the above is better achieved in an e-enabled system

• To successfully implement any individual performance linked incentive

scheme degree of rigor and consistency required in performance

management system is extremely high

• There needs to be a common appraisal architecture for an incentive

scheme that spans all grades A to I and include Directors

2.2.2.) “THIS IS HOW ePMS WORKS?”

ePMS covers all officers working in Grades A-I, that is, it includes all the officers

from lower level to the higher level.

2.2.3.) “System features for ePMS”

The following features have been provided in the system. You should attempt to

optimize use of these to support sound performance management

➢ Pre-defined KRAs and KPIs

• You may define your own KRAs where required, but first look

for relevant KRAs in the system

➢ Stretch Tool (Discussed in detail in the following section)

➢ Performance diary

• Tool to record significant events during the performance

period

➢ “Refer to Reviewer” in cases of disagreement

• To ensure a solution acceptable to all parties

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 P e r fo rm a n c e P la n n in g
p ro c e s s
A p p r a is ee t o A p p r a i s e e to P lan s e n t t o F in a l
c o m p l ete h av e R e v ie w e r P er fo rm an c e
P e r fo rm an c e d is c u s sio n f o r i n p ut s P l an f o r
P l an o n K R A w it h a n d F in a l A p p r a i s ee i s
s e c t io n b y A p p r a is er , S i g -on f f ready
s e t t in g t a r g e t s m ak e
w it h st r et ch fo r m o d if ic at io n
each KPI if n e e d e d &
c h o s e n i n h is A p p r a is er
p l an s i g n-os ff o n
t h e P la n

20

Chart 2.2.4.

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2.2.4. Performance Planning

 Every employee and his Appraiser will select KRAs and KPIs for the

performance year based on the role profile. Provision exists to define up to

6 special KRAs with KPIs to accommodate specific situations.

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

the Unit’s/Department’s targets.

 To ensure uniformity of stretch in targets across functions and work groups

a stretch measurement tool has been provided in the ePMS.

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

reviewed and approved by the Reviewer to complete Planning Phase.

 Provision exists to edit the performance plan in case of significant changes

in business plans or roles (transfers, new responsibilities etc.) with the

approval of Appraiser and reviewer.

2.2.5. “Performance Appraisal”

 At the end of six months a mid year review of performance on KPIs will be

done and feedback will given.

 Year end performance appraisal would be done on KPIs, Competencies,

Values and Potential.

 Scores on KPIs, Competencies, Potential as well as Values will be

calculated numerically and then pro-rated on the basis of weightage of

each of these sections to get overall PMS score

 KPIs’ scores would determine Individual performance part for incentive

calculation. This score will be shared with the employee.

 The overall PMS score will be moderated, as at present, for determining

the final PMS rating.

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 KEY ROLES IN ePMS:- chart-2.2.5

K e y R o le s i n t h e P M S
A p pra ise e A p pra ise r R e vi e w e r C o u n te r s i gn in g
O f f i ce r
A n I n d i v i d u al w h Ao n i n d iv i d u a l w hAon i n d i v id u a l w h o i s
A n i n d iv i d u a l w h o a s s e s s e s th e i s re s p o n s ib l e fo r r e s p o n si b l e fo r
i s a s s e s s ed a s p a pr te r fo r m a n c e o f o nr e v i e w i n g t h e e n tieren s u r i n g s a n c ti t y o f
o f t h e p e r fo r m a n coe r m o ar ep p r a i s e e p e r fo r m a n c e p r o c e s ps r o c e s s a t t h e
cy cle t h a t r e p o r t in to a n d t y p i c a l l y i s h i g h es t l e v e l . H e
h im/h er a p p r a i s e r’ s a p p r a is ewr i l l b e th e fi n a l
a u t h o ri t y

H e l ps m a n a g e
p e r fo rm a n ce & W ill e n su re
T h e k e y d ri ve r p r o vi de s O b je c ti vi ty ,
F in a l a u th o ri ty
o f o w n P M S c o n tin u o s T r a n s p a re n cy
fe e d ba ck a n d & C o n s is te n cy
c o a ch in g

F a cilita to r/ A dm in is tra to r
H R t o fu n c t i o n a s a fa c i l i t a t o r i n th e e n t i r e np sur o rcee as ds hwehr eo n wc eo ut ol dt i m e l i n e s s a n d
c o n s is t e n c y in t h e p r o c e ss 11

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2.2.6-Why focus on Target Setting?

 Target setting is a critical activity during performance planning as it

involves setting clear expectations of performance on each KRA/KPI in an

individual’s performance plan.

 These clear expectations can serve to:

– Better drive individual performance.

– Increase objectivity of appraisal on KPIs at the year end review.

 Adequate time and attention needs to be allocated for this activity.

Quality of target setting impacts success of performance management

2.2.7-Target Setting Process

 Target setting is to be done by appraiser and appraisee mutually as a part

of performance planning process at the beginning of the performance

period.

 The Reviewer would need to ensure that targets set across the team are

appropriate and balanced.

 Targets for individual Key Performance Indicators would be cascaded in a

top down manner from the MOU and the budgeting process, where

applicable. For non-MOU parameters targets would reflect the business

plan and role requirements.

 Targets have to be set at 5 Levels of performance corresponding to the 5

points on the rating scale for KPIs to increase the objectivity of appraisal at

the end of the year.

 There would be a mid-year and an end-year target for each KPI.

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KPIs have a 5-point scale with each point on the scale anchored to target

metrics-reflecting degree of performance achievement against each KPI.

Chart-2.2.7

S c a le f o r a p p ra is a l o f K P Is

 5-p o in t s c a le

1 2 3 4 5
U n s a t is fa c t o ryN e e d s C o n t rib u t o r A c h ie v e r O u t s t an d in g
I m p ro v e m e n t

S i g n i f i c a M n ot l dy e r a t e Ml y e e t s M o d e r a S t ei gl yn i f i c a n t l y
b e lo w b e l o w E x p e c t a t i oa nb so v e a b o v e
e x p e c t a te i ox np es c t a t i o n s e x p e c t a t i o np e s c t a t i o n s
e x

31 C h a n g e A g e n ts T r a in in g

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2.2.8Stretch Tool

 A tool which helps to determine stretch with greater objectivity and

consistency across the organization has been built into the ePMS.

 The stretch tool consists of five dimensions which determine degree

of difficulty in the targets. The score on all dimensions, calculated

based on level of difficulty, determines the level of stretch in the

targets.

 The definition for nil, low, medium and high stretch for each

dimension is provided in the tool.

 Stretch needs to be calculated for the Annual target at Level 3 of

performance of the target. This is the target level for MOU and

Centre point of scale and also the logical definition of target based

on Meets Expectations definition of scale.

 At he year end rating on each KPI will be multiplied by the stretch

on it to get the performance score for each KPI.

 This process will ensure that appraisee, whose targets are

stretched are not disadvantaged as compared to those whose

targets have lower stretch.

Dimensions
5 D im e nof
s iostretch:-
n s o f S t r e t cChart-2.2.8
h D e g r e e o f S tr e tc h
M e d iu
N il Low H ig h
m
R e la t iv e t o t h e p r e v io u s a c h ie0 v.2e 5m e 0n .5
ts 0 .7 5 1
D e p e n d e n c e o n u n c o n t r o lla0 b.2le5 s 0 .5 0 .7 5 1
C o m p le x it y 0 .2 5 0 .5 0 .7 5 1
S k ill r e q u ir e m e n t s 0 .2 5 0 .5 0 .7 5 1
N e e d f o r In n o v a t io n 0 .2 5 0 .5 0 .7 5 1

2
PERFORMANCE PERIOD:-

P M S c yc le w o u ld b e

P e rf o rm a n ce P la nn in g

* A p r -i lJ u n e

A p r -M
il a y

M id Y e a r re v ie w &
F ee d ba ck a nd R e v ie w
f e ed ba c k

O c to ber
O n g o in g m o n t h ly r e v ie w
and feedbac k

F in a l P e rfo rm a n ce
A p p ra is a l

A p r il

* E xa c t m o n t h s o f p l a n n i ng w il l b e r e fi n e d i n e a c h c y c l e
12

Chart-2.2.9

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 2.2.10-Review and Modification of performance management

system

 The system was reviewed and modified to support objective assessment

of performance.

 There is a move towards consistency of features across grades.

 The key features of objectivity and transparency have been built into the

system.

 Performance appraisal to be annual with formal mid year review.

 Performance management will be on

– KPIs

– Competencies

– Values

– Potential

For all grades Chart-2.2.10

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 Performance Management System Design
The relative weightages are as follows:
 GHI grades ( as per PESB guidelines)

KRA Competency Value Potential

50% 20% 15% 15%

 DEF grades

KRA Competency Value Potential

60% 20% 10% 10%

 ABC grades

KRA Competency Value Potential

70% 10% 10% 10%
8

2.2.11-FINAL REVIEW PROCESS

Final Appraisal, Review and Feedback are an assessment phase when

appraisers assess level of achievement of KRAs, targets and routine

responsibilities and demonstration of competencies for each Appraisee.

Chart-2.2.11

2
 F in a l Y e a r R e v ie w p ro c e ss
A pp r a isee A pp r a iser A pp r a iser R e v ie we r will Sy st e m will
will will R e v ie w w ill v a lidat e e a ch c a lc ulat e th e
c om p lete Se lf- de t er m in e r at in g an d P M S Sc o r e a s
Se lf– A pp r a isa l R a t in g on m ak e ch an ge s p e rwe ight a ge s
A pp r a isa l and e a c h KP I , if an y o f e lem e nt s an d
o n KP I s & p e rf or m a nc e C o m p et en cy , o ve r a ll we igh t of
subm it to o utc om e s o f v a lue an d se c t ion s ba se d
th e th e p ote nt ia l o n KP I
A pp r a iser A pp r a isee e le m ent c om p ete nc ie s,
v a lue s an d
p ote nt ia l

C o unt er sign in g O n ly th e
o f f ic e r F in a l sco re
C o n c lude s v a lidat e s an d o n KP I s is
F in a l m o der at e s sh a r e d wit h
R e v ie w f in a l P M S a pp r a isee
P h a se r at in g a s pe r an d
c ur r ent p ro c e ss a pp r a iser

39 C h a n g e Ag e n ts T r a in in g

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2.2.12-Performance Diary

 An appraisee would fill in his/ her specific accomplishments throughout the

year and appraiser would be able to see it online. At end of the year

appraisee can be more objectively evaluated on indicators which have

measures of timeliness and quality.

 There could be roles in the organization that spend most of their time in

doing routine kind of jobs, and their KPIs might be qualitative indicators

like timeliness and quality whose objective evaluation could be difficult at

end of the year.

 Since qualitative KPIs will need to be verified during performance

discussion this tool would aid a meaningful conversation.

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 2.2.13-Role as appraiser

As an appraiser, you will be in direct contact with the appraisee. Therefore the

following assume great significance in your role.

 To ensure adequate time is spent in the performance planning phase.

 To conduct performance discussions as often as is required and to

encourage the appraisee to share his thoughts on performance planning

and execution.

 To provide prompt and timely feedback on performance.

 To ensure consistency in targets among all your appraisees and to avoid

large variations in loading by using the stretch tool appropriately.

 To try and resolve all issues at your level towards a win-win solution.

 To escalate issues which you feel do need reviewer’s intervention.

2.2.14-Role as reviewer

 Since you will be the final authority in the most crucial phase of

performance management- planning phase, your role assumes much

greater significance as a reviewer.

 Consistency is the most critical aspect that you will need to focus on -

consistency of

– KPIs and their weightages

– Targets

– Stretch calculation

 You will be required to resolve disputes that may be escalated to you;

however you may encourage appraisee and appraiser to resolve these

among themselves.

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 Several reports will be available to you in the system - you may use these

as support to query on status/ level of adherence to guidelines etc. (e.g.

guidelines around certain KPIs in a performance period, weightages,

timelines etc.).

A t A p p r a is e e ’ s E n d

V ie w in g t h e d e m o …

P l ea s e cl ic k h e r e to vie w
th e d e m o

36

Chart-2.2.14s

HOW ePMS LOOKS i.e. MODEL OF ePMS IN IOCL

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2.3-PERFORMANCE APPRAISAL OF NON EXECUTIVES IN IOCL

This cadre contains the staff/non officers in it and the appraisal system for them

is wholly confidential and is unidirectional. In IOCL, in staff cadre there are eight

grades and their appraisal is done through CR’s i.e. Confidential Reports.

2.3.1-Classification of grades:

(a) Grade I to III: Shramiks (unskilled cadre)

For this cadre there are different CR papers and there evaluation is done on

papers only, that is, every employee’s separate sheet is prepared which contains

several attributes. These attributes are different from other grades.

The workmen chosen for these grades must be qualified up to intermediate.

The performance sheet contains six attributes listed and the seventh one is the

summary appraisal. This summary appraisal need not match the summarized

content of other six attributes.

The attributes are as:

1 Attendance

2 Smartness

3 Tidiness

4 Cooperation

5 Dependability

6 Honesty and Integrity

3
The seventh one is the:

Summary Appraisal

Each attribute have 4 points which acts as a ground for further ratings, like,

Attendance

1 Outstanding

1 Above Satisfactory

1 Satisfactory

1 Below Satisfactory

Similarly, other attributes follows the same criteria.

The appraisal of this cadre is done on the basis of the above attributes. The

guidelines are well defined in the annexure attached with the copy of the CR. It

contains and explains the various issues related to the appraisee, the reporting

officer and the reviewing authority.

The reporting officer is generally the supervisor who directly controls the

appraisee that is the person who knows the appraisee and his work well. While

reviewing authority is HOD (Head of the Department) who finally completes the

task of appraising.

This helps the appraisee in maintaining the desired level of performance for

better productivity and achieving the organizational goals.

All the benefits are linked with the appraisal of the workmen. If the workman is

3
below satisfactory level then no PLI (Performance Linked Incentive) and other

related benefits are provided to him/her.

These appraisals results in promotions, rewards, incentives and other related

benefits like HRA(House Rent Allowance), maintenance expenses, PC’s etc.

Such practice also enhances the motivation level of the workmen and because of

that they bring better productivity to the organization.

“Happy Workers Are Productive Workers”

Photograph-2.3.1(a)

“Proper appraisal is like the one which brings a happy working environment and

is like a sunrise in the lives of the workmen”

Particular marks are allotted for these ratings like:

1 Outstanding: 40

1 Above Satisfactory: 35

1 Satisfactory: 25

If a person from this cadre is chosen for the purpose of promotions then the

average of last three years CR’s is taken. The eligibility for the promotions or the

maximum time span for this is 4 years and 55 marks. These are the same marks

3
which we calculate as the average of those CR’s.

For grades I to III:-

1. Attendance

• Outstanding

• Above Satisfactory

• Satisfactory

• Below Satisfactory

2. Smartness

• Outstanding

• Above Satisfactory

• Satisfactory

• Below Satisfactory

3. Tidiness

• Outstanding

• Above Satisfactory

• Satisfactory

• Below Satisfactory

4. Co operation

• Outstanding

• Above Satisfactory

• Satisfactory

• Below Satisfactory

5. Dependability

3
 • Outstanding

• Above Satisfactory

• Satisfactory

• Below Satisfactory

6. Honesty and Integrity

• Outstanding

• Above Satisfactory

• Satisfactory

• Below Satisfactory

7. Summary Appraisal

• Outstanding

• Above Satisfactory

• Satisfactory

• Below Satisfactory

b) GRADE IV TO VIII: Non Supervisory (Skilled cadre)

This cadre goes with different evaluation as compared to the unskilled cadre. The

evaluation sheet for this cadre contains attributes which differ from the previous

cadre. This contains both Technicians and Non Technicians. Generally

Technicians are put in the grade VII and the Non Technicians are put into in the

grade VIII.

3
The qualifications needed for this cadre is ITI, Diplomas, Graduation in science

disciple etc. The qualifications too vary from grade to grade within the cadre.

There are 11 attributes including the summary appraisal which are used for the

purpose of appraising the workmen under this cadre. The main difference arises

here between the skilled and the unskilled cadre, as, in this case the summarized

content of the 10 attributes should be in parallel with the summary appraisal, that

is, the things should match properly. Any mismatch between them need to be

revised by the appraiser.

The attributes are as:

1 Initiatives

2 Dependability

3 Character

4 Cooperation

5 Knowledge of job

6 Willingness to accept responsibility

7 Interest in work

8 Quality of work

9 Punctuality

10 Accuracy of work

The last point is the:

Summary Appraisal

As described in the Shramiks cadre, here also there are further 4 ratings for each

3
attribute, like

Punctuality

1 Outstanding

1 Above Satisfactory

1 Satisfactory

1 Below Satisfactory

For example, if the summarized content of the 10 attributes is showing the result

as above satisfactory, then, the summary appraisal must show above satisfactory

as the final rating.

For grades IV to VIII:-

1. Initiatives

• Outstanding

• Above Satisfactory

• Satisfactory

• Below Satisfactory

2. Dependability

• Outstanding

• Above Satisfactory

• Satisfactory

• Below Satisfactory

3. Character

• Outstanding

• Above Satisfactory

• Satisfactory

3
 • Below Satisfactory

4. Co operation

• Outstanding

• Above Satisfactory

• Satisfactory

• Below Satisfactory

5. Knowledge of job

• Outstanding

• Above Satisfactory

• Satisfactory

• Below Satisfactory

6. Willingness to accept responsibility

• Outstanding

• Above Satisfactory

• Satisfactory

• Below Satisfactory

7. Interest in work

• Outstanding

• Above Satisfactory

• Satisfactory

• Below Satisfactory

8. Quality of work

3
 • Outstanding

• Above Satisfactory

• Satisfactory

• Below Satisfactory

9. Punctuality

• Outstanding

• Above Satisfactory

• Satisfactory

• Below Satisfactory

10. Accuracy of work

• Outstanding

• Above Satisfactory

• Satisfactory

• Below Satisfactory

11. Summary Appraisal

• Outstanding

• Above Satisfactory

• Satisfactory

• Below Satisfac

4
3-ORGANISATION'S PROFILE

4
 3.1- IOCL as a whole

3.1.1- VISION :- Photograph-3.1.1

“ A Major, Diversified, Transnational, Integrated Energy Company, with

National leadership and a Strong Environment Conscience, playing a

National Role in Oil Security & Public Distribution.”

4
3.1.2-MISSION

Photograph-3.1.2

 To achieve international standards of excellence in all aspects of

energy and diversified business with focus on customer delight

through value of products and services, and cost reduction.

 To maximize creation of wealth, value and satisfaction for the

stakeholders.

 To attain leadership in developing, adopting and assimilating state of

the art technology for competitive advantage.

 To provide technology and services through sustained Research and

Development.

 To foster a culture of participation and innovation for employee

growth and contribution.

4
3.1.3-OBJECTIVES

 To serve the national interest in the oil and related sectors in accordance

and consistent with government policies.

 To ensure and maintain continuous and smooth supplies of petroleum

product by way of crude refining, transportation and marketing activities

and to provide appropriate assistance to the consumer to conserve and

use petroleum product efficiency.

 To earn a reasonable rate of interest on investment.

 To work towards the achievement of self- sufficiency in the field of oil

refining and by setting up adequate capacity and to build up expertise in

lying of crude and petroleum product pipeline.

 To create a strong R&D base in the field of oil refining and stimulate the

development of new products formulations with a minimize/eliminate their

import and to have next generation products.

 To maximize utilization of the existing facilities in order to improve

efficiency and increase productivity.

 To optimize utilization of its existing capacity and maximize distillate yield

from refining of crude oil to minimize foreign exchange outgo.

 To minimize fuel consumption in refineries and stock losses in marketing

operation to effect energy conservation.

4
  To further enhance distribution network for providing assured service to

customer throughout the country through expansion of reseller network as

per marketing plan/ government approval.

(f) To avail of viable opportunities, both national and global, arising out of the

liberalization policies being pursued by the government.

3.1.4-MORE ABOUT IOCL

a) EXPANDING HORIZONS

Indian Oil has set its sight to reach US$ 60 billion revenues by the year 2010-11

from current earnings of US$ 34.44 billion. The road map to attain this milestone

has been laid through vertical integration – forward into petrochemicals and

backwards into exploration and production of crude oil, besides diversification

into natural gas business and globalization of our operations.

In petrochemicals, a master plan envisaging Rs. 25,000 crore (US$ 5.7 billion)

investment is already underway. The commissioning of the world’s largest single

train Linear Alkyl Benzene plant at Koyali refinery in August 2004 and the on-

going integrated Paraxylene/Purified Terephthalic Acid (PX/PTA) plant and a

world-scale Naphtha Cracker with downstream polymer projects are part of this

plan. Indian Oil also proposes to convert the on-going Paradip refinery into a

refinery-cum-petrochemicals complex to strengthen its presence in the sector.

4
 Photograph-3.1.4(a)

In exploration & production (E&P), Indian Oil has participated in the first three

rounds of NELP (New Exploration Licensing Policy) in India, in consortium with

other companies, and was awarded 11 exploration blocks. It has acquired

participating interest in on-shore blocks in Assam and Arunachal Pradesh region.

Overseas ventures include 2 blocks in Sirte Basin in Libya and Farsi Exploration

Block in Iran. The Corporation is also exploring opportunities to acquire a suitable

medium-sized E&P company too quickly consolidates its upstream operations. In

natural gas business, Indian Oil is already marketing 5.26 MMSCMD (million

metric standard cubic meters per day) of gas. To augment its business in the

sector, it has now finalized an import deal for 1.75 million tones of LNG per

annum with Iran for supplies from the year 2009 onwards. The Corporation has

also proposed partnering Petropars, a subsidiary of National Iranian Oil

Company, in jointly developing gas blocks in the North Pars fields of Iran.

b) TRANSNATIONAL PRESENCE

4
To emerge as a transnational energy major, Indian Oil has set up offices in Sri

Lanka, Mauritius and UAE and is simultaneously scouting new opportunities in

new energy markets in Asia and Africa. (photograph-3.1.4(b))

C) SYNERGY THROUGH SUBSIDIARIES

A wholly owned subsidiay Indian Oil Technologies Ltd., has been established

for Commercializing the Innovations and Technologies developed by the R&D

Centre across the globe. The Merger of Indian Oil Blending Ltd with the Parent

Company, now approved by the Government, is in the final stages of

implementation.

The Merger of IBP Co. Ltd., a retail focused subsidiary with a network of 4,000

retail outlets, has been completed successfully. On Government’s approval, other

statutory approvals, including shareholder’s approval, would be sought to

complete the merger at the earliest.

d) IOCL SPREADING WINGS

The Corporation has launched several joint ventures in partnership with some of

the most respected Corporates from India and abroad -- Lubrizol, Nyco SA,

4
Petronas, Oiltanking GmbH, Marubeni, to name a few. SERVO lubricants are

being marketed in Dubai, Nepal, Bhutan, Kuwait, Malaysia, Bahrain, Indonesia,

Sri Lanka, Kyrgyzstan, Mauritius, Bangladesh, etc.

Photograph-3.1.4(d)

3.1.5-OBLIGATIONS

(a) Towards customers and dealers

To provide prompt, courteous and efficient service and quality products at fair

and reasonable prices.

(b)Towards suppliers

To ensure prompt dealings with integrity, impartiality and courtesy and promote

ancillary industries.

(c) Towards employees

Develop their capability and advancement through appropriate training and

career planning.

(d) Expeditious redressal of grievances

Fair dealings with recognized representatives of employees in pursuance of

healthy trade union practice and sound personnel policies.

4
(2) Towards community

3.1.6-Organisational Hierarchy

STRUCTURE OF IOCL IOCL (CHAIRMAN)

Refinery Marketing R&D Pipeline Assam Oil Division

(Director) (Director) (Director) (Director) (Director)

(AOD)

Mathura Only One Unit Same as *Separate Culture

Panipat at Faridabad Marketing Rules & Regulations

Barauni Division

Guwahati

Gujarat Northern Region Office

4
Paradip STA (State Office)

Haldia Area Offices

Western Region Office

STA (State Office)

Area Offices

Southern Region Office

STA (State Office)

Area Offices

Chart-3.1.6

5
3.1.7CORPORATE HISTORY

Corporate History

Merger
Indian Refineries Ltd. Indian Oil Company Ltd.
1958 1959

Indian Oil Corporation Ltd.

1964

Pipelines
Division Refineries Marketing
11.03.65 Division Division
to 22.02.68

Chart-3.1.7

5
(a) CORPORATE HISTORY

2001

• Acquired entire holding of Govt. of India in

- Chennai Petroleum Corporation Ltd.: 51.81%

- Bongaigaon Refinery & Petrochemicals Ltd.: 74.46%

2002

• Adopted strategic interventions to face the challenges of

Post APM (Administered Price Mechanism) effective

01.04.2002.

• Acquired 33.58% Govt. of India equity in IBP thru’

competitive bidding + 20% equity through open offer

2004

• In-principle decision to merge IBP with IOC

2004

• IndianOil’s entry into E&P and Petrochemical business with

LAB at J & PX-PTA at Panipat

5
 (b) SUBSIDIARIES

Domestic

• Bongaigaon Refinery & Petrochemicals Ltd.

• Chennai Petroleum Corporation Ltd.

• IBP Co. Ltd.

• IndianOil Technologies Ltd. *

Overseas

• IndianOil Mauritius Ltd. *

• Lanka IOC (Private) Ltd. *

• IOCL Middle East FZE Dubai*

• Wholly owned subsidiaries

(c) A Time to Reflect

….Then.…

• Hydrocarbon sector not open to private investment

• APM: Direct Government control over prices and assured returns on

capital employed

• Sales Plan entitlement: Market share handed on a platter to all players

• Demand more than supply: no importance to customer

• No incentive to perform!!

5
 (d) …And Now….

• Supply exceeds demand for the first time in the downstream hydrocarbon

sector

• ………and Natural gas makes a grand entry

• Consumer driven preferences….higher octane fuels….& the pleasures of

shopping!!

• How to add value to the customer when it does not add to your bottom line

• Knowledge to be the Key driver of competitive advantage in the

Hydrocarbon sector

• Bulk consumers also have a choice and are exercising it!

(e) Implications of Changed

Paradigm

• Refinery margins under squeeze

• Need for huge capital investment for producing cleaner fuels (eg. ultra-low

sulfur diesel)

• Market Share not assured

• New and diverse product & service package

• Cut-throat competition in Retail Marketing

• Emerging ‘Gas’ scenario & its impact on liquid hydrocarbon business

• Need for increased performance at individual, group & organizational

levels

5
 CORPORATE STRUCTURE

C o rp o ra te S tru c t u re

BO AR D

C O RPO RA T E D IV IS IO N S

• F in a n (ci ne c l . • R e f in e r ie s
In t e r n a t io n a l T r a d e /
I n f o r m a t i o n S y s t e m s / O p t i m i z a ti o n )
( i n c l. A s s am O il D i v is io n )
• P ip e li n e s
• H um a n Re sourc es
• M a r k e t in g
• P la n n in g & B u s in e s s D e v e• Rloepsme ae rnct h & D e v e lo p m e n t

N a v r a tBn oa a r d
- C h a i r m a n & 7 F u n c ti o n a l D i r e c t o r s
- 2 G o v e r n m e n t D i re c to r s
-5 p a-tri tm e i n d e p e n d e n t D i r e c to r s
-1 O N G C N o m i n e e

Chart-3.1.8

5
3.1.9- HR Policies – The Aim

Human resource management policies and procedures should aim

at ….. Attracting Excellence

• Maintaining Excellence

• Motivating Excellence

• Developing Excellence

Rewarding Performance

• Work is its own reward!!

– Differentiated assignments

– Differentiated learning opportunities

– Career growth opportunities

• Unit Rewards for meeting / exceeding Unit Level Targets: System in

place & under implementation

• Individual/ Team Reward Scheme Launched

5
3.1.10- REFINERIES PIPELINES & MARKETING SET-UP OF IOCL

5
UNIT OF IOCL (Mathura Refinery)

5
 MATHURA REFINERY

3.2.1- MATHURA REFINERY

LOCATION: It is situated at 150 kms from Delhi on DELHI – AGRA

Highway (NH-2) At Mathura.

NATURE: It is one of the 8 Refineries of IOCL, a Government of India

undertaking.

BUSINESS: Refining of crude oil and supply petroleum products.

CAPACITY: It has capacity of refining of 7.5 Million metric ton of crude oil but in

current year 8.2 million metric ton crude oil refined in the plant

ADAPTABILITY: It has capability of reeling of over 30 types of crude oil –

imported as well as indigenous.

Mathura refinery was set up to meet the overgrowing demand for

petroleum products in the north-west region of the country by redefining crude oil

which comes from Salaya (Bombay High) and after refining go back through

MJPL, Mathura - Jalandhar pipeline. The various products manufactured from

crude oil with a capacity of 7.5 million tones per annum are as follows:

1) MS-Unleaded Petrol

5
2) HSD-High Speed Diesel

3) LSD-Low Speed Diesel

4) Kerosene

5) Naphtha

6) ATF-Aviation Turbine Fuel

7) Bitumen

8) Sulphur

9) Furnace oil

10) LPG-Liquefied Petroleum Gas

11) Propylene

3.2.2-SET-UP OF MATHURA REFINERY

a) Refinery Division

b) Pipeline Division

c) Marketing Division

6
3.2.3- MATHURA REFINERY IS FIRST

1) To have two operating SRU’s (Sulphur Recovery Units) in any of the

refinery in India.

2) To have installed single largest crude oil distillation column in India, 67

meter high engineering marvel.

3) To have achieved a continuous accident free spell of 14 millions man

hours, a unique distinction by any refinery in India.

4) To have conformed to minimum national standards (MINAS) for its effluent

treatment ever since the refinery was commissioned.

5) To have set up Ambient Air Monitoring Stations (4 in number) even before

the operation of the refinery were started.

6) To have set up a Bird Sanctuary within refinery premises

Photograph-3.2.3

6
3.2.4-ENVIRONMENT

Mathura Refinery becoming the first refinery in Asia and third in the World whose

environment management system has been certified for ISO 14001/ Marching

ahead on the growth path, refinery is implementing Eco-friendly projects like

catalytic reforming unit, hydro cracking unit and diesel hydro-sulphurisation unit.

These units will not only help in producing cleaner fuels but that also result on

substantial reduction in refinery emulsions to a level of 200 kg/hr.

In addition to this commitment towards preserving ecological balance and

national heritage has always been the top of the agenda for the refinery.

Ecological Park and mini bird sanctuary frequented by 70 species of birds are a

living testimony of harmony of refinery operations with ecology apart from the

management techniques adopted for human resources, strategic planning, and

quality assurance. The major work has been done in the area of ecology

preservation particularly for TajMahal.

“Green Refinery Clean Refinery Mathura Refinery”

Motto of Mathura Refinery

3.2.5-RECOGNITION / AWARDS:

(a) ENERGY CONSERVATION:

National Energy Conservation Award - 1st prize in refinery sector of minister of

power for the years 1991 and 1996.

Jawaharlal Nehru Centenary Award of MOP & NG - for achieving best

improvement in energy conservation Compared to its past best performance for

the year 1994-1995.

6
MOP & NG Award - for best performance in steam leak during the oil

conservation week, 1996.

MOP & NG Award - for the best performance with regard to furnace and boiler

instrumentation and control during the oil conservation week, 1993.

National Energy Conservation Award- 2nd prize in refinery sector of ministry of

power for the year 1997.

(b) SAFETY:

British Safety Council Award for the years 1990, 1992, 1993 & 1995.

National Safety Award under scheme II & I for the years 1993 & 1994.

A.V OGALE RUNNING SHIELD FOR THE YEAR 2006-07

(c) QUALITY MANAGEMENT SYSTEM CERTIFICATION:

ISO 9002 Certification for manufactures and supply of petroleum products.

IS0 9002 Certification for Support Services.

(d) ENVIRONMENT MANAGEMENT SYSTEM CERTIFICATION

ISO 14001 Certification for Environment.

(e) TOTAL QUALITY CERTIFICATION

Golden peacock national quality award, 1996

Rajeev Gandhi National quality award, 1994, 1997

(f) TRAINING

Golden Peacock National Training Award for excellence in training, 1997.

3.2.6-DEPARTMENTS IN ICOL( Mathura refinery)

1) Personnel and Administration department

2) Training department

6
3) Finance department

4) Internal Audit / Vigilance department

5) Medical department

6) Production department

7) Fire and Safety department

8) Mechanical department

9) Maintenance department

10) Power and Utilities department

11) Materials department (Purchase/store)

12) Instrumentation department

13) Civil maintenance department (Site & township)

14) Technical service department

15) Project department

16) Engineering Services department

17) Pollution control department

18) MIS department

19) Safety Audit

20) Management Services

6
 3.2.7-HUMAN RESOURCE (HR)-MATHURA REFINERY

DGM (HR)

CHR CMMS
CM (A&W) CTRM CM
CMO M CM (Security)
(MS)

SM (CC) SM (MS)
VS Gupta

Chart-3.2.7

DGM (HR) is the heading the HR Department at a unit

CHRM – Chief Manager (HR)

CTRM – Chief Manager (Training)

CMO – Chief Medical Officer

CM (A&W) - Chief Manager (Administration & Welfare)

CM (Security) – Chief Manager (Security)

CMMS – Chief Manager Management Services

SMCC – Senior Manager Corporate Communication

At each unit of IOCL, employees are divided in two categories.

1) OFFICERS

2) STAFF( NON OFFICERS)

EMPLOYEE’S AS PER CADRE

For Officer’s Category:

Grade ‘I’ – Executive Director (ED)

6
Grade ‘H’ – General Managers (GM)

Grade ‘G’ – Deputy General Managers (DGM)

Grade ‘F’ – Chief Managers (CM)

Grade ‘E’ – Sr. Managers

Grade ‘D’ – Managers

Grade ‘C’ – Deputy Managers

Grade ‘B’ – Sr. Officers/ Sr. Engineers

Grade ‘A’ – Officers (Engineers of mechanical (ELE), Personnel (PAO), Civil

(CLE)

ED is the Unit Head of a Refinery i.e. only of one unit of IOCL.

For Staff Category:

• Grade ‘VIII’ – Master Optr, Tech., O.S., Master Loco Optr, P.

Sister, Sr. Chemist

• Grade ‘VII’ – Optr A/I, Tech I, SOA, Jr. Accountant, PA, Sr. Loco

Optr, Sr. Sister, Chemist etc.

• Grade ‘VI’ – Optr B/II, Tech II, Office Astt, A/c Astt, Sr. Steno,

Loco Optr, Astt Chemist etc.

• Grade ‘V’ – Optr C/III, Tech III, Sr. CI/Ty, SAC, Jr. Steno, Sr.

Driver, Sr. Nurse etc.

• Grade ‘IV’ – Optr D/IV, Tech IV, Driver, Staff Nurse etc.

6
 • Grade ‘III’ – Shramik-I, Drafty-cum-Messenger, Cook-cum-

Bearer, Hospital Attendant

• Grade ‘II’ – Shramik-II, -do-.

• Grade ‘I’ – Shramik-III, -do-.

Entire staff has to Report to grade :-

● A Skilled workers-Grade vi to vii

● Semi-skilled workers-Grade iv to v

● Unskilled worked-Grade i tp iii

6
4-RESEARCH METHODOLOGY

USED

6
 4- RESEARCH METHODOLOGY USED

Research Methodology may be understood as a science of studying how

research is done scientifically. In it we study the various steps that are generally

adopted by a researcher in studying the research problem along with the logic

behind them.

Following are the steps and techniques, which were used by the investigator for

methodology:-

4.1- UNIVERSE OF STUDY:-

Universe covers the whole defined field on which the study is based. The

present study is carried in Mathura Refinery located on the outskirts of Mathura

city, when one travel from Delhi to Agra. The environment of this area is peaceful

with green atmosphere. Various products including petrol and diesel are

manufactured from crude oil. The working staff of Mathura Refinery is. The

universe of study was all working members including both staff and officers.

4.2- SAMPLE SIZE:-

Sample size depends on the nature of the universe, so it should represent

the whole universe without any bias. As there is huge manpower in Mathura

Refinery, so it was very difficult to study each and every individual. The limitation

of time and money has not permitted the researcher to study the whole universe.

So the researcher has studied only 50 employees of Mathura Refinery and

covered nine departments that were—

Personnel & Administration, Finance, Production, Fire and Safety,

Mechanical, Planning and Maintenance, Power and Utilities, Instrumentation and

Material department which represent the whole staff of the organization.

6
4.3- SAMPLING METHOD:-

Out of various types of sampling methods, the researcher had used

Random Sampling, as it was both, time saving as well as easy method of picking

up the sample. As random sampling is also of many types, so the researcher had

used stratified random sampling for study because it was more reliable. In this

method, whole population that is required for study is divided into different groups

and sample were selected from them.

4.4 RESEARCH DESIGN:-

Designing is preliminary step in every activity. It provides a picture for the

whole before starting the work. The researcher had used exploratory research for

gaining experience. For this relevant literature related with the subject had been

carried out. It also experience survey, selection of respondents, paper

questioning etc.

4.5 QUESTIONNAIRE DESIGN:-

The questionnaire is a structured technique for collecting primary data in a

survey. It is a series of written or verbal questions for which the respondent

provides answers. A well-designed questionnaire motivates the respondent to

provide complete and accurate information.

The survey questionnaire should not be viewed as a stand-alone tool.

Along with the questionnaire there is field work, rewards for the respondents, and

communication aids, all of which are important components of the questionnaire

process.

7
4.6-Steps in Developing the Questionnaire:-

The following were the steps in developing the questionnaire – the exact

order may vary somewhat.

 Determining which information is being sought. The information

being collected was related to Performance Appraisal.

 Choosing a question type (structure and amount of disguise and

method of administration, written form, e-mail, or web form). The method

of administration was of a written form.

 Determining the general question content needed to obtain the

desired information.

 Determine the form of response. A meeting with the respondent

was fixed so that the information apart from the questions in the

questionnaire could be collected to get more data on prospective clients.

 Choose the exact question wording. The wording play major role in

the questionnaire as they decide how well they can attract the attention

of the client.

 Arranging the questions into an effective sequence. The

sequencing of the questions decides the approach to be followed and

the stand which the respondent is going to take.

 Specifying the physical characteristics of the questionnaire (paper

type, number of questions per page, etc.).

 Test the questionnaire and revise it as needed. Many mock

interviews were conducted and the questionnaire was refined many a

times in response to suggestions from the project leader.

7
4.7-Question Type and Administration Method:-

Some question types include positive alternative, open ended, and

projective:

(a) Fixed-alternative questions provide multiple choice answers.

These types of questions are good when the possible replies are few and

clear-cut, such as type of networking.

(b) Open ended questions allow the respondent to better express

his/her answer, but are more difficult to administer and analyze. Often,

open-ended questions like In your opinion what feedback should be

provided to you by your immediate supervisor regarding your assessment

(c) Projective methods use a vague question or stimulus and attempt

to project a person’s attitudes from the response. The questionnaire could

use techniques such as word associations and fill in the blank sentences.

4.8 Question content:-

Each question should have a specific purpose or should not be included in

the questionnaire. The goal of the questions is to obtain the required information.

This is not to say that all questions directly must ask for the desired data. In some

cases questions can be used to establish rapport with the respondent, especially

when sensitive information is being sought. Some techniques used are:

 Placing the question in a series of less personal questions.

 Providing response choices that specify range, not exact numbers.

 Using a randomized response model giving the respondent pairs of

questions with a randomly assigned one to answer. The interviewer does

7
 not know which question the person is answering. The questions when

asked were not asked in a particular sequence. They were correlated to the

information provided by the respondent.

4.9 Form of Question Response:-

Questions can be designed for open-ended, dichotomous, or

multichotomous responses.

(a) Open-ended responses are difficult to evaluate, but are useful

early in the research process for determining the possible range of

responses.

(b) Dichotomous questions have two possible opposing responses,

for example, “Yes” or “No”.

(c) Multichotomous questions have a range of responses as in a

multiple choice test.

4.10 Question Wording:-

The questions should be worded so that they are unambiguous and easily

understood. The wording should consider the full context of the respondent’s

situation.

When asking about the time period, the questions should avoid ambiguous

words as “sometimes”, “occasionally” etc. Rather, more specific terms such as

“next week”, ‘next month” etc. should be used. The same has been done in the

last question.

7
4.11- Sequencing the Questions:-

Some neutral questions were placed at the beginning of the questionnaire in

order to establish rapport and put the respondent at ease. Effective opening

questions are simple and non-threatening.

When sequencing the questions, it was kept in mind that their order can

affect the response.

4.12 -Physical Characteristics of the Questionnaire:-

Physical aspects such as page layout, font type and size, question spacing

etc. were considered. The layout of the questionnaire always has a impression on

the outputs as are to be arranged or produced by the respondent.

4.13-Test and Revise the Questionnaire:-

The questionnaire was administered by using mock interviews in order to

get better feedback on problems such as ambiguous questions. Then it was

tested in the same way as it was to be administered.

Different respondents answer the same question differently. One hopes

that the differences are due to real differences in the measured characteristics

but that often is not the case.

7
 5. INTERPRETATION AND

ANALYSIS

Interpertation

1) Are you aware of the performance appraisal system in your

organization?

a.YES b. NO

7
 Aware of the performace appraisal

(a) Yes
(b) No

Graff-5.1

Interpretation of 5.1 out of 50 questionnaire filled 30 said that

they are aware of performance appraiser system and 20 said they are

not aware.

2) Are you aware of the periodicity of the performance appraisal?

a.YES b. NO

7
 Aware of the perodicity

(a) Yes
(b) No

Chart-5.2

Interpretation of 5.2 out of 50 questionnaire filled 20 said

that aware of periodicity system and 30 said they are not

aware.

3) Whether feedback is provided to you by your immediate supervisor

regarding your assessment?

a.YES b. NO

7
 INTERPRETATION AND ANALYSIS

Periodicity of Performance Appraisal:-

7
PERIODICITY PERCENTAGE OF OFFICERS NO. OF OFFICERS
Quarterly 14.17% 17
Half-Yearly 21.67% 26
Annually 64.17% 77

Graphical Representation of above collected

Information

NO. OF OFFICERS

Quarterly,
17

Half-
Annually,
Yearly, 26
77

Quarterly Half-Yearly Annually

AWARENESS OR PERFORMANCE APPRAISAL

FACTORS

7
 100%
80%
60%
40% Y E S , 90%

20%
0% NO , 10%
YES NO

S e rie s 1

The results clearly show that 90% of the officers are aware about the

performance appraisalNO. OF OFFICERS

factors and 10% of the officers are not aware of such

responsible
80 factors.
70
60
50
40
YES
30
NO
20
10
0
YES NO

NO. OF OFFICERS
FEEDBACK

8
 The result shows that about 70 officers are getting the proper feedback

and the rest 50 officers are not getting the feedback.

8
 LIMITATIONS

Though the data collected is proper but still there were certain limitations

which were hindrance in making the data more appropriate. The limitations were:-

1. Because of shutdown activities, employees were engaged with

their shutdown jobs and thus were not very readily available. This

would have hampered the flow of input in someway.

2. As the questionnaire method was followed, people were not very

comfortable in releasing the information.

3. As the questionnaire method was followed, limitations would have

creped in while administering the same.

4. Many a time, employees were very reluctant in releasing the

information, considering it to be confidential. Thus, it was a

hindrance in study.

8
 RECOMMENDATIONS AND SUGGESTIONS

The following are the recommendations/suggestions which came into light

after the completion of the study:-

1. People are not very much aware of filling the ePMS, so more number

of training programs should be there.

2. Emphasis on feedback should be there.

3. All employees should be aware of promotion policies of IOCL and the

link of their promotions with the performance appraisal system.

4. Post performance appraisal measures should be strengthened so

that employees get to know their areas where focused improvement

is required.

8
 CONCLUSION

After completing the research study on 120 employees (officers) of

Mathura Refinery regarding effectiveness of PERFORMANCE APPRAISAL

SYSTEM, my suggestions would be that in future the research on IOCL should

be such that:-

 The subordinates are encouraged to accept more responsibilities

and challenges.

 The subordinates need to be appraised more frequently on their

positive contribution.

 The strength and limitations of the subordinates should be realized,

in which the problems faced by the subordinates are taken in a

systematic way and in which the supervisor attempts to understand

the problems of the subordinates.

 Subordinates should be encouraged to acquire new capabilities and

to handle more responsibilities.

 To identify developmental needs in which the employee is prepared

for discussion through self-assessment.

 Identify factors that are contributed to employee’s performance and

the factors that hinder it.

8
APPENDICES

8
 QUESTIONNAIRE

4) Are you aware of the performance appraisal system in your

organization?

α. YES b. NO

5) Are you aware of the periodicity of the performance appraisal?

α. YES b. NO

6) Whether feedback is provided to you by your immediate supervisor

regarding your assessment?

α. YES b. NO

7) Are you aware of the factors that govern the performance appraisal

system?

α. YES b. NO

8) In your opinion what should be the periodicity of performance

appraisal of officers.

α. Quarterly

β. Half-Yearly

χ. Annually

9) In your opinion what feedback should be provided to you by your

immediate supervisor regarding your assessment?

………………………………………………………………………………………

…………………………………………………………………………………… .

10) In your opinion what factors should govern the performance

appraisal system?

α. Cost consciousness

8
 β. Time schedule

χ. Coping high pressures

δ. Co-operation

ε. Adaptability change/ receptive new ideas

φ. Planning and organizing

γ. Willingness to accept responsibility

η. Initiative

ι. Communication

ϕ. Leadership

κ. Courage of conviction

λ. Volume of work

µ. Quality of work

ν. Dependability

ο. People awareness

π. Control

θ. Problem awareness and decision making

ρ. Training and development of subordinates

σ. Team orientation

τ. Job knowledge (Functional/Inter-functional)

11) In your opinion what are critical factors of Performance Appraisal?

………………………………………………………………………………………

………………………………………………………………………………………

12) In your opinion whether the performance appraisal system meets

the objective meets the objective of fair assessment?

α. YES b. NO

8
13) In your opinion performance appraisal is used for the following

o Promotion

o Training

o Organization effectiveness

o Development of officers

o Transfers

o Salary Adjustments

o Other benefits

8
For grades I to III:-

2. Attendance

• Outstanding

• Above Satisfactory

• Satisfactory

• Below Satisfactory

2. Smartness

• Outstanding

• Above Satisfactory

• Satisfactory

• Below Satisfactory

8. Tidiness

• Outstanding

• Above Satisfactory

• Satisfactory

• Below Satisfactory

9. Co operation

• Outstanding

• Above Satisfactory

• Satisfactory

• Below Satisfactory

8
10. Dependability

• Outstanding

• Above Satisfactory

• Satisfactory

• Below Satisfactory

11. Honesty and Integrity

• Outstanding

• Above Satisfactory

• Satisfactory

• Below Satisfactory

12. Summary Appraisal

• Outstanding

• Above Satisfactory

• Satisfactory

• Below Satisfactory

9
9
 BIBLIOGRAPHY

• HUMAN RESOURCE MANAGEMENT

- By L.M. Prasad

• HUMAN RESOURCE AND PERSONNEL MANAGEMENT

- By K Aswathappa

• RESEARCH METHODLOGY

- By C.S. Kothari

• INDIAN OIL ANNUAL REPORT

• IOC MATHURA REFINERY “DARPAN”

• IOCL HR Manual

• Websites:-

• www.iocl.com

• GALAXY- intranet of Mathura Refinery