the aditya birla group is india

8/3/2019 The Aditya Birla Group is India

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The Aditya Birla Group is India's first truly multinational corporation. Global in

vision rooted in Indian value, the group is driven by a performance ethic pegged

on value creation for its multiple stakeholder. A US $6 billion conglomerate, witha market capitalization of US $5 billion, it is endorse by an extraordinary forced of

72,000 employees belonging to over 20 different nationalities.

Aditya Birla Group has 66 states-of-the-Arts manufacturing units and sectoralservice span India, Thailand, Indonesia, Malaysia, Philippines, Egypt, Canada,Australia and China.

A premium conglomerate, the Aditya Birla Group is a dominant player in all thesectors in which it operates. Among these are viscose staple fiber, non-ferrousmetals, cement, viscose, filament yarn, branded apparel, carbon black, chemical,fertilizer, sponge iron, insulator and financial services.

It is: -

The world no. 1 in viscose staple fiber

The world largest single location palm oil production

Asia's largest integrated Aluminum producer

A globally competitive, fast growing copper producer

The world's third largest producer of insulators

Globally the 4th largest producer of carbon black

The world's 8th largest producer of cement and the largest in a single

geography

India's premier branded garments player

Among India's most energy efficient private sector fertilizer plants

India's second largest producer of viscose filament yarn India's second largest private sector insurance company

One of the India's leading asset management company

The group has also made successful forays into the IT (information technology)

and BPO (business process outsourcing) sectors.

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INDUSTRY SCENARIO


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The Aditya Birla Group believes in the trusteeship concept of management. It is

the specialty of the group that is profits are used into meaningful welfare-driven

initiative. These all activities are carried out under the Aditya Birla Center for

Community Initiative and Rural Development.

INDUSTRIAL PORFOLIO

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BEYOND BUSINESS


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Aditya Cement, it was established in March 1995, which is one of the latest

cement division of Grasim Industries Ltd. It is a record o Aditya Cement that they

produce 1 million tones per annum cement unit. This record is completed in 22

months from the beginning.

This plant is located at Shambhupura (Adityapuram) in Chittorgharh district

of Rajasthan. It is 18 kms far from Chittorgharh railway station. This plant has

465 manpower for the manufacturing of cement.

In Aditya Cement there are lot many modern equipments which are supplied by

the world major and renowned Krupp Polusius of Germany and quality control

systems by Gamma Matrix of United States Of America. This plant has already

certified by ISO-9002 and ISO-14001 Certificates. The plant has proximity tolimestone deposits and has an on- line Cross Belt Analyzer to ensure limestone

of consistent quality. Its 82% of power requirements are met through captive

source.

World Class Eco-Friendly Plant-Aditya Cement

The specialty of Aditya Cement Plant is, it's a World Class Eco-Friendly Plant.

Aditya Cement has adopted the most modern and latest dry process

precalcination technology with sophisticated control instrument from

internationally renowned firm. The entire manufacturing process is made

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automatic, using highly sophisticated sate-of-the- arts technology, having on line

process computer with color VDU control panels.

Aditya Cement took the lead in the country for energy conservation by installing

High Pressure Roller Press for raw material and cement grinding and vertical

roller mills imported from the world. This plant has also believed in the

importance of conservation of environment. By this policy of awareness of

environment they installed high efficiency Electrostatic Precipitators, Bag House

and Bag filters to keep the environment free from pollution.

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ORGANIZATION STUCTURE

Aditya Cement is a Unit of Grasim Industries limited a flagship company of the

Aditya Birla Group rank among India's largest private sector companies, with a

turn over of Rs.5, 213.3 corers in 2003-2004.

BOARD OF DIRECTORS

Mr. Kumarmanglam Birla, Chairman

Mrs. Rajshree Birla

Mr. M.L. Birla

Mr. B.V. Bhargava

Mr. R.C. Bhargava

Mr. Y.C. GuptaMr. Cyril Shroff

Mr. S.G. Subhramanyam

Mr. Shailendra Jain

BUSINESS HEADS

Mr. Shailendra Jain, Viscous Staple Fiber

Mr. Sourabh Mishra, Cement

Mr. Ravi Kastiya, Sponge Iron

Mr. S.K. Saboo, Textile Spinning

Mr. Vikram Rao, Textile Fabric

Mr. K.K. Maheshwari, Chemicals

Mr. D.D. Rathi, Chief financial officer,

Group Executive president and CFO

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IMPORTANCE OF PERFORMANCE APPRAISAL SYSTEM

Performance Appraisal is method of evaluation the behaviour of employees in

the work spot, normally including both the quantitative and qualitative aspects of

performance. It is a systematic and objective way of evaluating both work-related

behaviour and potential of employees. It is a process that involves determining

communicating to an employee how he or she is performing the job and ideally

establishing a plan of improvement.

PERFORMANCE APPRAISAL PROCESS

The term appraisal means evaluation of the performance of employees.

Evaluation of employees performance or potential provide data about past,

present and expected performance so that appropriate decisions can be made.

Systematic, formalized appraisals of an employee are likely to occurs at regular

intervals throughout the history of ones employment in an organization

performance Appraisal assists mangers in making decisions about differential

treatment to be accorded to individual employees in salary administration,

promotion, transfer, performance planning, training, counseling, discipline an

other matters to enhance the attainment of organizational goals.

Performance appraisal is a process of evaluating employee performance in order

to guide and develop the employee's potential. In many extension organizations,

which are government departments, the performance appraisal is nothing more

than a confidential judgment of work done and a character report used to

facilitate disciplinary action or promotion.

Performance appraisal is planned, developed and implemented through a series

of steps:

Establish performance standard

Appraisal system requires performance standards, which serve as benchmarks

against which performance is measured.

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Communicated the standard

Performance Appraisal involves at least two parts- the appraiser who does the

appraisal and the appraisee whose performance being evaluated. Both are

expected to do certain things. The appraiser should prepare job description

clearly; help appraisee set his set his goals and targets; analyse results

objectively; offer coaching and guidance to appraisee whenever require an

reward good results.

Measure actual performance

After the performance standards are set and accepted, the next steps are to

measure actual performance. This requires the use of dependable performance

measures, the rating used to evaluate performance. Performance measures, to

be helpful must be easy to use, be reliable and report on the critical behavioursthat determine performance. Four common sources of information, which are

generally used by manager regarding how to measure performance; Personal

observation, statistical reports, oral report and written report.

Compare actual performance with standard and discuss the appraisal

Actual performance may be better than expected and sometimes it may go off

the track. Whatever be the consequence, there is a way to communicate and

discus the final outcome.

Taking corrective action, if necessary

Corrective action is of two types. The one which puts out the fires immediately

and other one which at the root of the problem permanently. Immediately and

other one which strike at the root of the problem permanently.

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METHODS OF PERFORMANCE APPRAISAL

The methods of performance appraisal may be classified into threecategories, as shown in figure;

Performance Appraisal Techniques

Individual evaluation methods multiple-person evaluating other

methods

methods

1.confidencial report ranking

performance test

2.eassy evaluation paired comparison field review

technique

3.critical incidents forced distribution

4.cheak list

5.graphical rating scale

6.behavioiurally anchored

7.rating scales

8.forced choice method9.MBO

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PERFORMANCE APPRAISAL IN ADITYA CEMENT

Performance appraisal is the systematic, orderly and objectively procedure in

order to evaluate current performance of an individual. The main objective of

performance appraisal is to acquaint the appraiser with the appraisal system vis-

-vis appraisal forms, rating scale, appraisal factor and the basic guideline while

appraising performance. It aims at developing the Human resources through

identifying their strength and weaknesses.

o Appraisal System according to Aditya Cement

Performance Appraisal System is a method of evaluating the behavior of

employees in the work spot, normally including both the quantitative and

qualitatitive aspect of job performance. It is a systematically and objective way of

evaluating both work-related behavior and potential of employees. It is process

that involve determine and communication to and employee how he/she is

performing the job and ideally, establishing a plan of improvement

In other words performance appraisal system is a systematically, orderly and

objective method of evaluating current performance of the employee in an

organization.

o Objectives of Performance Appraisal in Aditya Cement

Performance Appraisal could be taken either for evaluating the performance ofemployee or for developing them. There are two types of evaluation that aretelling the employee where he stand means what is the current position ofemployees in the organization and using the data for personal decisionconcerning pay, promotion, transfer etc. So the Performance Appraisal is aimedat achieving: -

The main objective behind appraisal is it create and to nourish a

performance oriented and learning culture.

It provides a sense of dedication and challenges to employees and their

teams through.

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Role clarity is important point of objectives that how an appraisee know

about his role in organization.

It enables the appraisee plan and reviews his performance through a

participatory process.

Appraisal system establishes a linkage between performance and reward.

According to this objective it improve or he/ she is in very good

performance so that naturally he/she will get reward. And once get reward

than definitely he will try to improve his performance as best as possible.

Appraisal system establishes or facilitates a planned process of

management growth and development

It aims to establish an organizational environment where superior

performance permeates every aspect or the Aditya Birla Group

employee's professional life.

It creates a culture that empires and empower every individual to

contribute his/her best in building the business and the organization

through self-development and provide opportunities to recognize and

develop achievers.

Performance Appraisal also develops and optimizes Human Resources.

Performance Appraisal is biased on the belief that clarity of goals and

objective setting through a participatory process provides the foundationfor " Superior Performance".

It believes that every individual is capable of setting objectives and

assessing one own performance. It underlines introspection as a means of

growth.

o Appraisal Process in Aditya Cement

The Performance Appraisal process of Aditya Cement is consists of a series of

steps. Each step focuses a specific trait through which an individuals

performance is appraised.

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These Appraisals are done in the systematically, through a well defined and

developed appraisal form. In these appraisal forms, the Performance of an

appraisee is assessed based upon is task and achievement status mentioned by

the appraisee by his immediate superior (i.e. Appraiser) and subsequently it is

reviewed by his superiors superior (i.e. Reviewer).

Basically three different types of appraisal forms are being used in the Aditya

Cement according to different grades of employee. The Appraiser who is

immediate supervisor of the person being appraised appraises all the apraisees.

The appraisal is done against various factors and the appraiser indicates

performance rating, which can be reviewed by the reviewer.

In order to review the focus of appraisee's time attention, seriousness and use ofresource with the organizational / business needs bi-annual reviews are

conduction to assess the performance of the managerial cadre imply. For the first

review of appraisee, the reviewer and an appraiser give attention to on the work

performance of the month of April to September. This process is completed on

the month of October. After that second review is take place in the March. This

review is done on the basis of goals, which are completed during the period of

October to March.

o Performance Review process : -

The most important part of review is a reviewer who is the immediate supervisorof the appraiser further examines performance appraisal of all employees. Thereviewer carefully scrutinizes the Appraisal form. If felt necessary, the Reviewercan revise the appraisal rating with the concurrent or involvement of theappraiser. The reviewer should specially ask for written justifications by appraisein the appraisal form that is called Task Status.

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APPRAISAL PROCESS IN ADITYA CEMENT

A DIAGRAMETIC VIEW

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HRD puts up from to unit Head

for counter signing

HRD sends relevant

PADP/MPDP form to

Functional Head

HRD incorporate change

after review

Functional Heads hands overform to respective Appraisers

Review of specific casesby reviewer in

consultation with

appraisee

Appraiser hands over form to

appraisal of managerial cadrefor self-Appraisal

HRD collect appraisal rating

and sends back form ofspecific cases for review to

reviewer

After Goal setting and selfappraisal by the appraisee it

goes back to the Appraiser

Reviewer sendsfilled in appraisal

forms to HRD

Appraiser assessed the

performance ofmanagerial and non-

managerial cardre

employees

Appraiser submits the

completed form to reviewer


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APPRAISER PROCESS OF ADITYA CEMENT

To emphasize the developmental of appraisal, it has been named "PerformanceAppraisal and Development plan". Presently three different Performance

Appraisal and Development Plan forms are in vogue to cadre to the appraisalneeds of different level of employee. These are the forms, which are used inAditya Cement for the better Performance Appraisal.(Appen:1)

COMMON APPRAISAL

MANAGERIAL PERFORMANMCE AND DEVELOPMENT PLAN(MPDP)

The common appraisal system - Managerial Performance and Development

Plan - for the Assistant Managers and above of the Group is implement in Aditya

Cement as well. The system has gone through several refinements based on the

feedback received from some of their Directors and other senior managers. The

objective of the new common appraisal system is to make it more goal-focused

and to standardize it right across the Group. Aditya Cement has some trends for

this process. These trends are towards separate system for each cluster of

objectives. It is business-linked appraisal. This system is Participative and

discussion biased system. It focused on results and processes.

In Aditya Cement it is an annual exercise and linked with unit or group objectives.

It is a concept of self-appraisal and review of performance. But this process have

different standard, rating scales and systems. Specialty of this process is that it is

fully confidential system with development orientation. MPDP have some

different names like- a performance plan, Performance review, Potential

assessment, and a development plan.

MPDP have some unique features. It has a concept of self-appraisal process and

participatory approach with supportive work culture. Main feature of this process

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is that it is a transparent system. In Aditya Cement a lot of attention is given on

performance planning and development because it is mid-course review with

corrective action.

MAIN FEATURES OF MPDP

This process is mid-course review and it also takes corrective action for

completing the goals, which was mentioned lastly. It facilitates the process of

development that are, executive involvement through self-appraisal and

introspection. This process has a different way of rating. They have 4 profiles that

are exceptional achiever, high achiever, consistent contributor and performer.

Appraisee, Appraiser and reviewer are responsible for the process because they

have to do discussion before going to fill the form of appraisal. Appriasee is the

executive and one whose performance is to be assessed over one entire cycle.

Appraiser is the manager, one under whom the Appraise has closely worked

during the appraisal cycle. The Reviewer who is the appraiser's superior does the

other part; he is one who has worked closely with the appraiser and oversees

and the department or the function where the appraisee works.

The MPDP pursues the following objectives: -

To create and to foster a performance oriented and learning culture

To provide a sense of direction and challenge to managers and their teams

through role clarity

To enable the appraiser to plan and review his performance through a

participatory process To establish linkage between performance and reward

To facilitate a planned process of managerial growth and development.

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The Managerial Performance & Development Plan is meant to be a development

tool in the Aditya Birla Group as whole. It aims to establish an organizational

environment where superior performance permeates every aspect of the Aditya

Birla Group's Managers' professional life. It seeks to create a culture that inspires

& empowers every individual to contribute his/her best in building the business

and the organization through self-development. It seeks to create an

environment, which provides opportunities to recognize and develop achievers. It

believes in the development and optimization of human resources. It is based on

the premise that people at all levels are capable of contributing to the overall

team performance.

THE APPRAISAL PROCESS

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Setting KPS's for theyear ahead (A1)

Postappraisal

disscussion

Appraisers

recommendatio-

n (B4)

Potential

assessment (B3)

Achievement

profile reviewers'

comments (B2)

Personal &

career develop-ment (B1)

First 6-month

review of

objectives (A2)

Setting agreedobjectives A2,A3


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THE APPRAISAL FORM - A GUIDE

The purpose of this section is to take you on guided tour of the appraisal form.

The first page of the form captures a brief picture of the Appraisee's personal

details such as name, designation, qualifications and work experience etc. Unit

HRD will be responsible to furnish this data in each appraisal form.

A1 Key Performance Areas (KPA's)

(To be filled by the Appraisee after discussions with his

Appraiser)

A KPA is a thrust area or the area of importance dictated by the needs of

a business. It is an area of focus that calls for Appraisees time, attention

and resource. In short, it summarizes the Appraisees job profile and may

change in focus from year to year with the change in business context or

organizational goals.

At the beginning of the year, the Appraiser shares the organizational and

functional goals to help the Appraisee prepare his list of KPAs for the year.

KPA's are derived from an Appraisees function such as Marketing, HRD,

Finance and so on. For a Marketing Manager, for example, the thrust

area could be the introduction of new products in one year and it could be

distribution in another.

The Appraisee documents his KPA's, in order of priority on page 1 of the

appraisal form. The number of KPA's identified may be less than 5 and

may sometimes even exceed 5. The Appraisee retains the original

appraisal form, gives a copy of pages 1, 2, & 3 to the Appraiser and the

Unit HRD for reference.

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A2 First six months' objectives

(To be filled by Appraisee after discussion with his Appraiser)

The next step of the form involves listing down objectives based on the

KPA's. Objectives are specific quantifiable tasks/targets. They establish a

yardstick against which performance may be assessed at the end of the

review periods.

These objectives should be clear, brief, and measurable and time bound.

In the case of service functions, it may not be always easy to set

objectives in quantifiable terms but efforts must be made in this direction.

An element of challenge should be willingly built into them so that the

Appraisee stretches for his own good & organizational excellence. Anobjective cannot be a routine activity of the Appraisee. It must be

something that adds a value to the business that did not exist earlier.

Let us look at the example of the marketing manager once again. If his

KPA is to introduce a new product, his objective to achieve this KPA could

involve the following:

Test marketing the product in region X by July

Make the promotion plan by September

Hold a launch conference in October

Objectives are to be set for each KPA identified for the year. Total

number of objectives set for the whole year should not exceed 5-6. These

objectives need to be divided into two categories i.e. those which will be

started and completed within the first 6 months and those which will be

started after 1st July and will be completed by the end of December. There

may be some objectives, which may take more than six months to

achieve. In such cases, the objective should be listed both in sections A2

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and A3, clearly indicating what part of it would be completed in the first 6

months and which part in the second half of the year.

The column "agreed key objectives" on page 2 provides space for the

Appraisee to document objectives to be achieved in the first six months of

the appraisal period.

At the end of the first six-month period (i.e. June 30) a meeting between

the Appraiser and Appraisee will review the progress in achieving the

objectives.

Separate sub-columns have been provided for both the Appraisee &

Appraiser's qualitative assessment of achievement of objectives e.g. theymay comment on whether the objectives have been not achieved or

partially/totally achieved. If objectives have been partially or not at all

achieved, reasons must be assigned for it.

Objectives for the second six months may change due to certain

exceptional changes in assignment or focus; these changes may be

highlighted in the sub-column "agreed action plan".

The Appraisee is also given an opportunity to reflect on his performance

and identify factors (external or internal) that may have facilitated or

inhibited him in achieving his objectives.

e.g. facilitating factors - co-operation from other departments, good control

systems, support from his Appraiser.

e.g. Inhibiting factors - delayed decision making, delay in supplies, change

in management policies, lack of training to operate new equipment, period

of ill health. Care should be taken to record genuine constraints

supported by facts.

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If the Appraisee has made any significant contribution over and above his

agreed objectives, it must be captured in the column provided on page 2.

Significant contributions may be identified in the following three areas:

a) Active role in a Group-wide initiative - e.g. The Group Management

Trainee scheme or the group wide organizational survey, being part of any

task force or a TPM team.

b) Development of subordinates - This would involve documentation of ways

in which you have created a supportive work environment e.g. through

delegation (entrusted your subordinate/s with higher responsibility).

c) System implementation - This may include introduction of a new system or

strengthening the existing ones for effective system orientation e.g. a

customer feedback system.

A3 Second six months' objectives

(To be filled by Appraisee after discussions with his Appraiser)

The column on page 3 is similar in concept to the column on page 2. The

only difference is that it highlights the agreed objectives set for the second

six month's period of the appraisal cycle and the review of that

performance.

B1 Personal and Career Development

(To be filled only by the Appraisee)

The Appraisee has the opportunity to list down:

Any new learning of a significant nature e.g. an innovative way of solving a

technical problem or an insight about business acquired from his experience.

The idea here is to enable a manager to think through his previous year's

experience so that he can reinforce new learning's.

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Any skills and/or expertise acquired or sharpened during the past year in

course of work or through training e.g. budgeting, media planning, lateral

thinking, interpersonal skills etc.

Areas where he wishes to further improve

His plans to achieve the improvements he desires

His career interests, immediate and short term (next 1-3 years) so that these

may be taken into consideration when planning future assignments for him.

And others in the Group. This will also aid more meaningful Human

Resource Planning.

B2 Achievement profile

(To be filled only by the Appraiser)

Its purpose is to provide an overall perspective of the Appraisees

contribution & performance. The achievement profile relates to the

present job performance & not to potential. This profile is identified by the

Appraiser and shared with the Appraisee.

The appraiser should use the following scale to arrive at the achievement

profile of the Appraisee:

Exceptional High Consistent Performer

Achiever Achiever Contributor

I___________I____________I___________I

A detailed description of each profile is given below. It highlights certain

attributes; behavior patterns & performance to enable the appraiser draw a pen

picture of the Appraisee, taking into consideration the overall applicability of the

profile.

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EA - Exceptional achiever - is one:

Whose performance is well in excessof the agreed objectives, with a very

high stretch under adverse/normal conditions

Who conserves & utilizes his resources optimally

Who demonstrates complete mastery of his job & continuously acquires and

applies new knowledge

Who demonstrates a high degree of initiative and the ability to work

independently with a high level of confidence

Normally uses creative approaches/solutions when confronted with difficult

business situations or problems.

Who motivates and inspires his team to contribute its best through mutual

trust and two-way communication.

HA - High achiever - is one:

Whose performance is in excess of theagreed objectives with a high degree

of stretch under adverse/normal conditions.

Who conserves and utilizes his resources well Who demonstrates commendable grasp of his job

Who demonstrates moderate initiative & seeks guidance only in certain

difficult situations

Frequently comes up with creative solutions to issues.

CC - Consistent contributor - is one: Whose performance just about meets objectives with a good stretch under

adverse/normal conditions

Who utilizes his resources well but does not make an effort to conserve them

Who possesses reasonably good skills to meet the job requirements

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Takes reasonable amountof initiative but requires reminders & guidance in

some routine and many difficult situations.

Occasionallycomes up with creative approach to problems

Managerial Competencies

The appraiser is expected to assess and comment on the Managerial

Competencies and personal Attributes of the Appraisee along the dimensions

given below. However, it is not essential to comment on all or onlythe following

dimensions. The appraiser may identify dimensions, which have had a

significant bearing on the Appraisees performance. As far as possible, the

appraiser is expected to use live examples; from the actions of the Appraisee in

the previous year to make the comments data based.

Functional knowledge

Leadership

Problem solving

Strategic Thinking.

Resource Allocation

Networking

Personal Attributes

Maturity

Creativity

Winning instinct

Initiative/Motivation

Interpersonal competence

While the appraisal is being done for Unit Heads, their appraisers' should focus

on the following three dimensions, in addition to the one/s the appraiser may

have identified relevant to the Appraisee.

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Overall business has a basic interest in and sensitivity to the business

Perspective environment. Possesses a strong drive to

entity new avenues and redefine the industrial sector.

Management of change A facilitator who possesses the ability to anticipate,

respond and adapt to changes in the business

scenario to be ahead of competition. Gains the

acceptance of his subordinates in the change

process, involves them in the implementation of the

changes.

Development orientation the ability to identify and capitalize on his

subordinates' strengths. To create an environment

conductive for them to express themselves, learn and

support them to acquire new skills and higher levels

of performance.

B3

Potential assessment is a measure of the extent to which the

Appraisee possesses certain skills and competencies to take on

higher responsibilities. This helps to identify areas where the

Appraisee can contribute his/her best.

The appraiser would need to consider several factors while assessing the

Appraisee's potential. e.g. The Appraisee's career growth till date

and his/her career aspirations; the quality of performance in the

past and at present; strengths and weaknesses; knowledge, skills

and attitudes required at higher level and/or any other function;

professional qualifications, age, state of health and so on.

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The Appraiser would basically need to match the competencies and

personal attributes of the Appraisee with specific functional

requirements.

While looking for potential to be a Unit head, the appraiser must also

consider the managerial competencies stated on page 6 and 7 of

the booklet.

The appraiser may express the Appraisees suitability in his current role

and assign reasons why he thinks or doesn't think so. He may also

suggest ways of preparing the Appraisee to take on higher

responsibility or be rotated to any other function/units.

B4 Recommendations

(To be filled only by the Appraiser)

After having identified the Appraisee's potential, the Appraiser would need

to recommend the Appraisee for a promotion or transfer or to take

on additional responsibility in the same/any other Unit.

Similarly, relevant recommendations regarding increment/increase in

salary have to be made by the appraiser.

After the Appraiser signs the appraisal form, the Appraiser forwards it to

his Superior (the reviewer) for his input. The reviewer shares and

documents his views about the entire appraisal and then forwards it

to the Unit head for his signature.

The Unit HRD will compile the data generated, after the recommendations

have been made by the Appraiser, Reviewer and the Unit Head so

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as to accordingly plan the implementation of the recommendations

so made.

B5 Post Appraisal Discussion

(to be filled by Appraiser & Appraisee after discussion)

The post appraisal discussion is a constructive dialogue between the

Appraiser and the Appraisee. It provides a forum to freely discuss

the entire year's performance, personal/career development,

factors that have inhibited or facilitated his performance, areas of

improvement and the Appraisees development plan.

Sufficient time should be devoted to prepare for and hold discussion. TheAppraiser is responsible for documenting all the main points

discussed.

The Appraiser must encourage the Appraisee to analyze his own

successes, setbacks etc. The Appraisee should express this

assessment on the appraisal process. He may also identify areas

in which he would like the support and help of his Appraiser, to

contribute more effectively.

In case the Appraisee has disagreement with his appraisal done by the

Appraiser, the Appraiser is responsible to escalate it to his

Superior.

The Appraiser & Appraisee may jointly arrive at 1 or 2 development

opportunities which are likely to have the biggest impact on

achieving the Appraisee's performance plan and fulfilling his

development needs. Specific actions to be taken by the Appraisee

and Appraiser together, within a specified time frame, must be

documented.

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Other means of development such as being part of a task force,

visits to plants that have state-of-the-art technology, visits to a

company that has introduced a new concept/system that has led to

a turn around, may also be documented to be followed up.

Responsibilities

The Appraisee and his Appraiser will share the responsibility of preparing the

MPDP.

The Appraisee - is the one whose performance is to be assessed over oneentire appraisal

Takes the initiative to prepare the first draft of the P & DP and contribute to its

timely completion within 15 days from the receipt of the form from the

Appraiser.

Informs the Appraiser about his readiness to share & finalize his KPA's

Documents the mutually agreed KPA's and objectives in the appraisal form.

Retains the original appraisal form, gives a copy of pages 1,2 & 3 to the

Appraiser and Unit HRD for reference.

Evaluates his progress on the achievement of objectives at the end of six

months period and at the end of the year.

Forwards the appraisal form to the Appraiser twice during appraisal year (i.e.

for a joint progress review after six months & at the end of the year for the

final assessment.

The Appraiser (The Appraisee's immediate Superior) - is one under

whom the Appraisee has closely worked during the appraisal cycle.

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Gives as much importance to the planning of the work and aligning it to

organizational objectives, as to evaluating performance and giving feedback.

Gives the Appraisee insight into the organizational and departmental

objectives.

Records major achievements/contributions made by the Appraisee during the

year.

Ensures that a joint progress review after first six months period takes place.

Ensures that the feedback is constructive and actionable.

Makes note have and shares specific examples of behavior and incidents for

positive and negative feedback.

Ensures that the post appraisal discussion is a constructive dialogue between

himself and the Appraisee.

Shares the MPDP with the Appraisee & ensures its timely completion.

At the end of the year, after the final assessment by the Appraiser, he

forwards the form to the Reviewer (the Appraiser's Superior).

The Reviewer (Appraiser's Superior) - is one who has worked closely with the

appraiser and oversees the department or the function where the Appraise

works.

Documents his inputs about the performance of the Appraisee

Ensures that it does not have generalizing or vague language

Calibrates ratings across the function

Checks for discrepancies that may occur in rating e.g. If the achievement

profile is not supported by valid qualitative feedback.

Redirects the MPDP to the Appraiser if it does not meet the requirements.

The Unit Head

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Ensures the timely distribution of the appraisal forms to the various functional

heads in the Unit.

Calibrates ratings across the different functions.

Acknowledges the appraisal evaluation by signing on each appraisal form

Sends all the completed appraisal forms to Unit HRD in time.

Unit HRD

Fills in the section on the executive's personal data e.g. name, designation,

years of experience etc. and sends the appraisal form to the all Unit heads.

Ensures the speedy and effective implementation of the MPDP e.g. obtains

feedback from time to time.

Ensures uniformity of approach and objectivity in decision making

Ensures that compensation revision reaches managers in time

Ensures that the appraisal forms reach back to Appraiser for the post

appraisal discussion

Corporate HRD

Familiarizes unit heads, functional heads and Unit HRD with the common

appraisal system and its components.

Ensures uniformity of approach and objectivity in decision making

Equips Unit HRD to implement the system in their units.

Elicits feedback from the units about the effectiveness of the system e.g.

through a survey

Fine-tunes and refines the system on basis of the feedback received from

time to time.

There are some important process steps and responsibilities, which is done by

the particular person.

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Process steps responsibilities

Jointly setting of KPA's and objectives Appraiser and Appraisee

(A1, A2, A3)

0 Joint review of objectives after the first Appraiser and Appraisee

six months period

1 Personal and career development (B1) Appraisee

2 Achievement profile (B2) Appraiser

3 Potential assessment (B3) Appraiser

4 Appraiser's recommendations (B4) Appraiser

5 Post Appraisal discussion (B5) Appraiser and Appraisee

Senior executive

Overall business perspective: -

Has a basic interest in and sensitivity to

business environment. Process a strong drive to

identify new avenues and redefine the industrial sector.

Management of change: -

A facilitator who possesses the ability the anticipate,

respond and adapt to change in the business scenario to

be ahead of competition. Gains the acceptance of his

subordinate in the change process, involves them in the

implementation of the change.

Development orientation: -

The ability to identify and capitalist on his

subordinate strength. To create an environment

conductive for them to express themselves, learn and

support them to acquire new skills and higher level of

performance.

PERFORMANCE APPRAISAL DEVELOPMENT

PALN(PADP)

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Performance level Rating forPADP (Managerial Employees) and PADP (Non-Managerial Employees) are same as mentioned for MPDP i.e. ExceptionalAchiever, High Achiever, Consistent Contributor, performer and non-performer.Managerial competencies are specific to MPDP. With increasing competitivepressures on business, productive of teams and individual performance is getting

under the spotlight. No progressive business or team likes to carry less thanconsistently performing members as part of their team. In Aditya Cement, theyhave been making continuous effort to improve their performance. Each businessmust identify its top performer as well as poor performers. Poor / non-performerare not only a drag on the business, but also impact team morale and efficiencyof High Performers.

PADP (managerial) and PADP (non-managerial) are the way by which AdityaCement can know who is the best and in what they want improvement. Itprovides goals and work plan for the next year and these plans are determined

by the last achievements, this is the main and important feature. It is created onlybecause Appraiser wants to know that particularly which factor does theemployee affect and which factors are perfect. According to that they can easilymention that what would be the score of a particular are of an individualemployee. These factors are coming under the Performance Assessment.

PERFORMANCE APPRAISAL DEVELOPMENT PALN

(Managerial Personal)

1. Contribution on the job

a) Meeting target and tasks

Completion of task within deadlines

b) Consciousness for cost, quality and productivity

Accuracy and neatness of work Consistency of output

Adherence to standard laid down and instruction given

Awareness of cost involvement and attempts to minimize them

Optimum use of resource and time in completion of task

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c) Managerial effectiveness through positive discipline and leadership

Ability to win the confidence and support of subordinates

Setting personal example to promote discipline

Conflict resolution and redresal of grievances

Clear guidance and communication to subordinate

d) Internal and external customer orientation

Awareness of internal and external user of his output

Sensitivity their needs with of various groups

Meeting their needs with respect to speed and quality of output

2) TPM/ISO/EHS/SA-8000 Systems

a) Understanding TPM/ISO/EHS/SA-8000 Systems

Familiarity with the principle, objectives and salient feature of

TPM/ISO/EHS/SA- 8000

Systems; knowledge of TPM, Quality and Environment Policy

Awareness of the department's role vis-a vis organizational compliance

with these systems

Consciousness of the importance of these systems to the organization

Understanding Total Quality Concept

b) Implementation of systems

Application of TPM/ISO/EHS/SA-8000 philosophies in work practice

Meeting of requirements of these systems with regard to quality of work,

safety, environment, documentation and etc.

Member ship of sub-committees.

Preparation of activity boards, work procedures/ work instructions

c) Continuous monitoring and achievements

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Constant monitoring to ensure compliance of all systems to

TPM/ISO/EHS/SA- 8000 requirement at all time

Continuous assessment of targets to measure their relevance and

efforts to revise them as and when required

Continuous effort to improve upon TPM/ISO/EHS/SA-8000 target and

goals

Contribution in preparation of application for various awards

Role as internal auditor and auditee

Attending circle meeting and monthly TPM communication Meetings

3) Ability to Delegate an Exercise Control

a) Willingness and extend to delegation and decentralization

Confidence in the ability of their subordinates

Willingness to take the risk of allowing the subordinates to "get their feet

wet"

Equip subordinate with the authority to effectively carry out their

responsibilities

Constant effects to introduces subordinates to new roles and

responsibilities

b) Consultation with subordinates on decision affecting their work

Awareness of impact of decisions on subordinates work and

communicating the same to them

Sensitivity to work related needs of subordinates

Involving them in the decision making process to the extent possible

4) Analytical Ability and Decision Making

a) Ability to plan and organize

Chart out a plan for every major task

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Setting of goals and targets

Clear understanding of resources and time required and optimal

allocation thereof

Constant monitoring to ensure meeting the targets

b) Mental awareness and grasping ability

Quickness in understanding problems and issues

Ability to concentrate for long hours

Ability to process diverse information streams simultaneously

Sensitivity to changes in the environments

c) Problem solving and decision-making

Ability to go to the crux of a situation and understand it thoroughly

Ability to envision facets of a situation, extract relevant information and

analyze it

Ability to visualize all decision alternatives and gauge the effect of each

alternative

Ability to take a firm stand and follow it up, and the flexibility to change

it, if the situation so demand

5) Ability to develop people

a) Fairness and objectivity

Ability to look at situation from various viewpoints

Elimination of basis and preconceived notion while taking decision

having an

implementation for subordinates Avoiding imposition of one's value system in others

Awareness of subordinates needs and motivations

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b) Training and development of subordinates

Awareness of subordinates' job requirement, strength,

weakness, interests and career plans

Identifying training and development needs of subordinates

based on the above and ensuring that they are met

Giving constant feedback to subordinates on their performance

and giving inputs to upgrade their performance and giving inputs

to upgrade their job related skills.

c) Motivation and moral building

Ability to act as role model

Guiding subordinates to help them achieve their realistic needs

Constant interaction with for subordinate so they can stretch

themselves

Inculcating "we feeling' in subordinates

Generosity with support and praise

d) Development of successor

Identification of likely successor based on job requirement and

personal qualities and competence of subordinates

Identification of skill/attitude gaps related to grooming of the

identified successor

Holding of training session and providing counseling, job coaching,OJT's and formal training to the successor to facilitate his/her

transition

6) Knowledge of work and awareness of environment

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a) Job related knowledge

Sound grounding in fundamentals of functional area

Ability to translate/adapt theory into practice

Familiarity with work practices in functional area

Expertise in own field of specialization within functional area

Good overall knowledge of related field within functional area

Ability to appreciate linkage with other functional areas and

contribution of other area to the organization

b) Awareness of latest development in field of operation

Updating of knowledge by regularly by reading journal and books

related to field of operation

Ability to use acquired knowledge to add value to the department

and the organization Eagerness to work with people possessing

good knowledge or experience in his area.

Membership of professional bodies

c) Ability to adapt/ responsiveness to change

Awareness of the impact of various changes in the e internal and

external environment on the department and the organization

Change of work practices in accordance with the change in

scenario

d) Knowledge of organization polices and procedures

Familiarity with the vision, mission and core values of the

organization

Awareness of organization imperatives and theenvironmental factors influencing organizational direction

Familiarity with organizational rules, policies and procedures

Adherence to organizational values, culture, policies and

rules

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7) Conceptual and innovative skills

a) Anticipation of problems and planning of corrective action

Ability to recognize symptoms of a problem situation

Quickness of reaction to strike at the problem's root

Effectiveness of planning to ensure success in solving

problems

Constant monitoring to ensure adequate progress in tackling

problem

Documentation of learning to enables combat of similar

nature in future

Ability to think new/ alternative approaches

Ability to generate new ideas continuously

Ability to find ways to translate ideas into practices

questioning of existing work practice that may not be optional

b) Modification proposed and executed Generation of new ideas and approached

Creation of entirely new systems

Revamp of existing systems

Identification of new action areas hitherto ignored

Efforts for continues improvement

8) Teamwork and relationships

a) Ability to work in teams/promotion of group culture

Ability to put team goals in perspective and direct focus towards

team goals

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Alignment with team rather than individual objectives

Active contribution to team work and encouraging inputs from all

members

Ability to resolve team conflicts

b) Ability to work with superiors, peers and subordinates

Ability to establish rapport with people within and outside the

department

Respectful attitude towards superiors and friendly relations with

peers and subordinate

9) Communication

a) Clarity of thought and willingness to share information

Ability to express thought coherently and in a logical manner

Elimination of ambiguities/ loose ends in communication

Keenness to share information of use to other, within and outside the

department

b) Verbal and written communication skills

Ability to put one's point across forcefully with out causing disrespect

Use of appropriate language in written and verbal communication

Ability to communicate precisely without omitting key detail

c) Capacity to listen to and appreciate other points of view

Openness to suggestions Tolerance of dissenting viewpoint

Encouragement of feedback

Willingness to change the stand in light of new facts

Patience in listening to other's problems or grievances

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Ability to look at things from the viewpoint of "the other persons"

There after Appraisee got overall rating out of 200. The purpose of assigning

performance level ratings is to provide an overall perspective of an Appraisees

contribution, performance and behavior. It essentially reflects achievement

profile of the Appraisee and relates to present job performance and not to

potential. This rating is given by the Appraiser and further examined by the

Reviewer. The post-review rating is to be shared by the Appraiser with

Appraisee.

The appraiser should use the following rating to depict the overall performance

level of the Appraisee:

Exceptional

Achiever

(EA)

High

Achiever

(HA)

Consistent

Contributor

(CC)

Performer

(P)

Non-

Performer

(NP)

A detailed description of each profile is given below. It highlights certain

attributes; behavioral patterns and performance to enable the Appraiser draw a

pen picture of the Appraisee, taking into account the overall applicability of the

rating category.

Exceptional Achiever (EA): is one

Whose performance is well above the agreed objectives/standards of

expected performance with a remarkable consistency under adverse/normal

conditions

Who conserves/utilizes resources optimally

Who demonstrates complete mastery of his job and continuously acquires

and applies new knowledge

Who demonstrates a high degree of initiative and the ability to work

independently with great confidence

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Normally uses creative approaches/solutions when confronted with difficult

business situations

Who motivates and inspires his team to give its best through effective team

building and leadership

High Achiever (HA): A very good performer is a high achiever

Whose performance is above agreed objectives/standards of expected

performance with

a marked consistency under adverse/normal conditions

Who conserves and utilizes his resources well

Who displays commendable grasp of his job

Who demonstrates a good degree of initiative and seeks guidance in difficult

situations

Often comes up with creative solutions to issues

Who is able to build a team and sustain its motivation and morale

Consistent Contributor (CC): is one

Who achieves targets consistently under adverse/normal conditions but does

not exceed them

Who utilizes his resources well but does not attempt to conserve/optimize

them

Displays reasonable degree of initiative but requires follow-up and guidance

in some routine and most of the difficult situations.

Who possesses knowledge and skills to meet the task requirement

Occasionally comes up with creative approach to problems

Performer (P): is one Who gives just expected performance/level. Finds it difficult to achieve his

objectives in adverse conditions or demanding situations

Who has limited job knowledge and skills

Could have utilized his resources better

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Who takes less initiative and has to be pushed constantly to get work done

Carries a conventional approach to job

Non-Performer (NP): is one

Who consistently fails to achieve targets/expected standards of performance.

Displays unwillingness to contribute

Who wastes organizational resources

Exhibits total ignorance of job knowledge

Carries negative attitude and closed mind set

In case any Appraisee is rated as "EA" or "NP" than it is necessary to give at

least two specific reasons. At the last there should be the signature of Appraiser

and Reviewer with their comments and date as well.

On the next page of the Appraisal process the Appraiser should clearly specify

one or two areas for Performance Enhancement and suggest the ways through

which improvement can be achieved. It is necessary to inform to Appraisee about

the Performance Rating and Area of Improvement, with name, designation, and

department as well.

The last section of the process is especially for the Goals and Work Plans for the

upcoming year. This division is to be filled by the Appraisee in consultation with

Appraiser with his/ her name, designation and department also. In this section

the Key Objectives or Goals are fix on with the target Date for the first and

second analysis of the coming year. At the last Appraiser and Appraisee should

do signature on it.

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2.6.2. Performance Appraisal and Development Plan

(Non-Managerial Personnel)

Successful implementation and institutionalization of Performance Appraisal

demands the real support and active participation of all concerned i.e. Appraisee,

Appraiser, Reviewer and Unit Head. They need to make wholehearted

contribution to make this system effective.

This Appraisal Process is usually same as the PADP-Managerial Personnel

process. Factors are the important part of process, which makes difference

between both the PADP Processes. But according to requirement Non-

managerial personnel need not to make any future plans. So that, this process

doesn't have the section of Future Goals and Work Plan.

Description of Appraisal Factors

I. Work Performance

A. Internal customer orientation

Awareness of internal and external users of output

Sensitivity to the needs of various user groups

Meeting their needs with respect to speed and quality of output

B. Job related knowledge

Sound grounding in fundamentals of functional area

Ability to translate/adapt theory into practice

Familiarity with work practices in functional area

Expertise in own field of specialization within functional area

Good overall knowledge of related field within functional area

Ability to appreciate linkages with other functional areas and the

contribution of other areas to the organization

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C. Meeting targets / tasks

Completion of tasks within deadlines

D. Cost and production consciousness

Accuracy and neatness of work

Consistency of output

Adherence to standards laid down and instructions given

Awareness of costs involved and attempts to minimize them

Optimal use of resources and time in completion of task

E. Modifications suggested / implemented

Generation of new ideas and approaches

Creation of entirely new systems

Revamp of existing systems

Identification of action areas hitherto ignored

Efforts for continuous improvement

II. Quality of Work

A. Speed

Quickness in planning and execution of work

Quick response to change

B. Accuracy

Conformity with instructions and standards

Low incidence of errors or rework

C. Consistency

Uniformly accurate and timely completion of tasks

III. Team Work and Relationships

A. Ability to work in teams / promotion of team spirit

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Ability to put team goals in perspective and direct focus towards

team goals

Alignment with team rather than individual objectives

Active contribution to team work and encouraging inputs from all

members

Ability to resolve team conflicts

B. Relationship with superiors, peers (colleagues) and subordinates

Ability to establish rapport with people within and outside the

department

Respectful attitude towards superiors and friendly relations with

peers and subordinates

C. Trustworthiness and openness

Ability to get along with people and win their confidence

Willingness to share information useful to others within or outside

department

IV. Attitude Towards Work

A. Positive thinking and involvement in the job

Self confidence

Can do attitude towards problem solving

Willingness to stretch oneself to achieve tasks

Whole hearted commitment to achievement of desired results

B. Intra departmental (within the department) and inter departmental

cooperation and support Eagerness to help others within and outside department

Broad organization level outlook rather than a narrow department

or sub section level outlook

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C. Ability to execute jobs without guidance

Willingness to accept new roles and responsibilities

Ability to plan and carry out tasks independently

D. Waste control and safety consciousness

Awareness of safety and wastage issues in the department and

throughout the organization

Attempt to minimize wastage and ensure safety in all actions

Concern for departmental and organizational environment

Concern for safety needs of others

V. Initiative

A. Ability to bring new ideas to work place

Ability to generate new ideas

Ability to implement ideas in organizational context

Constant questioning of sub optimal systems and procedures

B. Independent thinking and risk taking

Willingness to rise up to challenges

Originality of views

Ability to carry forward and test new ideas

C. Readiness to introduce changes voluntarily and shoulder higher

responsibility

Quality of performance of non-routine tasks

Attitude towards change measures initiated in department and

organization

Willingness to accept responsibility for failures as well as

successes

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VI. Dependability

VII. Emotional identity with the job and the organization

Level of correlation between personal and organizational goals

Subordination of personal goals to those of the organization

Commitment that goes beyond the fulfillment of professional

responsibilities

VIII. Discipline

A. Punctuality

Adherence to work timings

Cooperation with requests to complete urgent work beyond office

hours

B. Maintenance of dignity and decorum at work

Respect for peer group and superiors

Role model for subordinates

Proper attire at all times

Neat maintenance of workspace

Polite, respectful and civic language

C. Adherence to rules / regulations

Awareness of organizational rules and regulations

Strict adherence thereto

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4.1. CONCLUSION

From the study, the researcher concludes that in Aditya Cement performance

appraisal system is working at an expected pace. The topic Effectiveness of

performance appraisal system in Aditya cement is done by the survey method.

Successful implementation and institutionalization of Performance Appraisal

demands the real support and active participation of all concerned i.e. Appraisee,

Appraiser, Reviewer and Unit Head. They need to make wholehearted

contribution to make this system effective.

Appraisal should be viewed essentially as an instrument of development and notan instrument of rewards by the management only. After the analysis the

researcher comes to know that the Appraiser should try to analyze the strengths

and weaknesses of an employee and guide him about building his

skill/behavioral gaps.

In Aditya cement the Appraiser should organize a feedback session with

Appraisee after appraisal during which feedback can be given to appraisee and

his difficulties in performing assigned tasks can be understood.

For avoiding discrimination in appraisal, Aditya Cement used three types of

appraisal process MPDP, PADP (managerial) and PADP (non-managerial). So

that every employee get good and appropriate appraisal at proper time.

Thus, the policy and practice of performance appraisal at Aditya Birla is none or

less service the bank purpose of human resource development and so also the

organizational effectiveness.

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B I B L O G R A P H Y

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A p p e n d i x - B

(Speciment copy from Aditya Cement)

Managerial Performance and Development Plan_____________________________________________________________________________

_______

Year: 2004 2005

Name : Unit :Designation : Location :Grade : Department :Qualification : Last Increment date :Length of service :Length of service in present position :

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Key Performance Areas (Please list down Key Performance Areas after discussion between Appraiser aAppraisee)

1.

2.

3.

4.

5.

50

A

1

11

1


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First Six Months' Objectives ...

Agreed Key ObjectivesResults Achieved

Appraisees Assessment Appraisors Assessment

1

2

3

4

5

Agreed Action Plan

What factors have helped and/or hindered performance during the past sixmonths ?

Any significant contribution made by the Appraisee over and above his/herobjectives.(Please refer to the booklet for egs & details)

Signature of Appraiser Signature of Appraisee

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A

2

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Second Six Months' Objectives...

Agreed Key ObjectivesResults Achieved

Appraisees Assessment Appraisors Assessment

1

2

3

4

5

Agreed Action Plan

What factors have helped and/or hindered performance during the past sixmonths ?

Any significant contribution made by the Appraisee over and above his/herobjectives.(Please refer to the booklet for egs & details)

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A

3

11

1


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Signature of Appraiser Signature of Appraisee

Personal and Career Development(To be filled by the Appraisee only)

1. What has been your significant learning during the past year?

2. List down the skills and competencies that you have acquired or sharpened

during the past year?

3. List down areas you would like to improve further.

4. How do you plan to achieve the improvements you desire?

5. What are some of your career aspirations?

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B1

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Achievement Profile(To be filled by the Appraiser only)

Exceptional High Consistent PerformerAchiever Achiever Contributor

Comment about the managerial competencies and personal attributes of theAppraisee :(Please refer to the booklet for egs & details)

Comments by the Reviewer

__________________ __________________ Signature of Appraiser Signature of Reviewer

Date : Date :

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B2

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Potential Assessment(To be filled by the Appraiser only)

1. Are the managers abilities best used in his/her present job ?

Yes No

1a. If no, what job should he/she be assigned for best use of his/her currentabilities ?

(Please explain your recommendation)

2. Is he/she ready to be assigned higher responsibility ? If yes, what kind ofhigher responsibility can he/she be given and in what time frame? Whatpreparation does he/she need to make to take up such responsibility ?

3. Does the manager have long term potential to occupy seniorpositions ?

(e.g. Functional Head in large unit, a Unit Head or Head of a new project)

Yes No

3a. If yes, please explain his/her long term potential and what abilities andqualities indicate such potential ?

4. If the manager has long term potential (see above), what are the twocapacities or roles in which he/she should work in the next 3-5 years for furtherdeveloping such potential ?

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B3

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Recommendations (To be filled by the Appraiser only)

1. The manager may be promoted immediately as :

2. The manager may be transferred and posted as (in the sameunit) :

3. The manager may be given additional responsibility of(in thesame unit) :

4. An opportunity for the manager should be looked for inanother unit as :

(Please specify the nature of responsibility)

5. Amount of increment or percentage increase in salaryrecommended :

6. Any other comments:

Reviewers comments(if any):

Unit Heads comments(if any):

__________________ __________________ ________________Signature of Appraiser Signature of Review Signature of Unit Head

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B

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Post Appraisal Discussion

Main points : (To be filled by the Appraiser only)

Appraisees overall response : (To be filled by the Appraisee only)

Development Plan : (To be filled after discussion between Appraiser & Appraisee)

Training suggested Time Frame Reasons

Others means of development : (e.g. visits, short assignments)

___________________ __________________ Signature of Appraiser Signature of Appraisee

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B5

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