Case Study of HRM in Kudremukh Iron Ore Company Limited

Human Resource Management is a direction map that helps Managers to Recruit, Select, Train and Develop members for an organisation. Performance assessment may be understood as the appraisal of an Individual ‘s public presentation being measured against such factors as occupation cognition,

Quality and measure of end product, inaugural, leading abilities, supervising,

Dependability, co-operation, opinion, versatility, wellness and the similar.

The Performance Appraisal System needs to be really crystalline and

Helpful both to the employees and to the organisation. The demand is to acquire a

Feedback from valuators and appraises, working in the organisation, about the

Current province of the PAS. Merely after analysing the current province of PAS, the

Human resource directors can travel to the following measure of betterments in PAS. Angstrom

study is hence needed.

The research is undertaken to determine the views/opinions of the Raters

and Ratess working with the company and to propose appropriate alterations

about the bing PAS

Structured questionnaire will be prepared and discussed personally with

the respondents to acquire their responses.

The sample size will be restricted to 50 employees chosen on random

trying method. ( Stratified )

The findings indicate that the employees in general, the raters and the

rates are really good cognizant of the assessment system followed in the company.

The cognition about the assessment system is besides found to be satisfactory.

But there exists a spread, about the jobs encountered during the assessment by

the raters. The ratees opine that the Performance rating is done in an

Indifferent mode. But the responses of the raters show that they encounter

jobs like cardinal inclination and halo consequence. A suited recommendation

demands to be provided in this forepart.

To reason integrating a suited alteration in the bing

public presentation assessment system can cut down the jobs faced by the raters.

Some of the options available for a better public presentation system are 360-degree

rating ; Competency based appraisal, and Skills Audit.

Human Resource Management is a direction map that helps

directors to Recruit, Select, Train and Develop members for an organisation.

HRM is concerned with the people ‘s dimension in organisations.

HRM is a series of incorporate determinations that form the employment

Relationship ; their quality contributes to the ability of the organisations and the

Employees to accomplish their aim. HRM is concerned with the people

Dimension in direction. Since every organisation is made up of people,

geting their services, developing their accomplishments, actuating them to higher degrees

of public presentation and guaranting that they continue to keep their committedness to

the organisational aims. This is true, irrespective of the type of organizationgovernment,

concern, instruction, wellness, diversion, or societal action.

Therefore, HRM refers to put of programmes ; maps and activities designed

and carried out in order to maximise both employee every bit good as organisational


The range of HRM is so huge. It is summarized as shown below:

Degree centigrades: UserssaheedDesktopstrategic % 20hrm.jpg

An organisation ‘s ends can be achieved merely when people put in their

best attempts.

How to determine whether an employee has shown his or her best

public presentation on a given occupation? The reply is Performance assessment. Employee

appraisal is one of the cardinal occupations of HRM, but non an easy one though.

In simple footings, public presentation assessment may be understood as the

appraisal of an person ‘s public presentation being measured against such factors

as occupation cognition, quality and measure of end product, inaugural, leading abilities,

supervising, dependableness, co-operation, opinion, versatility, wellness and the

like. Assessment should non be confined to past public presentation entirely. Potentials of

the employee for future public presentation must besides be assessed.

The 2nd definition includes employees ‘ behavior as portion of the

appraisal. Behaviour can be active or passive-do something or make nil.

Either manner, behaviour affects occupation consequences. The other footings used for public presentation

assessment are: public presentation evaluation, employee appraisal, employee

public presentation reappraisal, forces appraisal, public presentation rating, employee

rating and ( possibly, the oldest of the footings used ) virtue evaluation. In a formal

sense, employee appraisal is every bit old as world. Nor public presentation assessment is

done in isolation. It is linked to occupation analysis as shown:

Job analysis sets out demands, which are translated into public presentation

criterions, which in bend form the footing for public presentation assessment.

Datas associating to public presentation appraisal of employees are recorded,

stored, and used for several intents. The chief intents of employee

appraisal are:

i‚·iˆ To consequence publicities based on competency and public presentation

i‚·iˆ To corroborate the services of provisional employees upon their completing

the provisional period satisfactorily.

i‚·iˆ To measure the preparation and developmental demands of employees.

i‚·iˆ To make up one’s mind upon a wage rise where ( as in the unorganised sector ) habitue

wage graduated tables have non been fixed.

i‚·iˆ To allow the employees know where they stand in so far as their

public presentation is concerned and to help them with constructive unfavorable judgment

and counsel for the intent of their development.

i‚·iˆ To better communicating. Performance assessment provides a format for

duologue between the Superior and the subsidiary, and improves

apprehension of personal ends and concerns. This can besides hold the

consequence of increasing the trust between the rater and the ratee.

i‚·iˆ Finally, public presentation assessment can be used to find whether HR

programmes such, as choice, preparation and transportations have been effectual

or non.

1. Developmental utilizations

2. Administrative uses/decisions

3. Organizational maintenance/objectives and

4. Documentation intents.

Performance assessments are capable to a broad assortment of inaccuracies and

prejudices referred to as ‘rating mistakes ‘ . These mistakes occur in the rater ‘s

observations, opinion, and information processing, and can earnestly impact

assessment consequences. The most common evaluation mistakes are

i‚·iˆ Leniency or badness

i‚·iˆ Central inclination

i‚·iˆ Halo consequence

i‚·iˆ Rater consequence

i‚·iˆ Primacy and Recency effects

i‚·iˆ Perceptual set

i‚·iˆ Performance dimension behavior

i‚·iˆ Spill over consequence

i‚·iˆ Status consequence

i‚·iˆ Solving raters jobs

The best manner to get the better of these jobs is to supplying preparation to the raters.

From a practical point of position, several factors, including the extent to which pay

is related to public presentation evaluations, brotherhood force per unit area, turnover rates, clip restraints

and the demand to warrant evaluations may be more of import than preparation, act uponing

the evaluations that raters really give. This means that bettering evaluation systems

involves non merely developing the raters but rectifying outside factors such as brotherhood

force per unit area. And it means that a rater preparation, to be effectual, should besides turn to

real-life jobs such as the fact that brotherhood representatives will seek to act upon

supervisors to rate everyone high.

Training helps to better the assessment system by get the better ofing deformation that

occurs due to the raters ‘ mistakes such as aura, lenience, cardinal inclination and prejudice.

Training of raters must assist beef up the factors that tend to better truth

Kudremukh Iron Ore Company Limited

M.P.Birla Institute of Management


of evaluations and weaken those that lower the truth of the public presentation


i‚·iˆ What should be rated?

One of the stairss in planing an assessment programme is to find the

rating standards. It is obvious that the standards should be related to the occupation. The

six standards for measuring public presentation are:

i‚·iˆ Quality

i‚·iˆ Measure

i‚·iˆ Seasonableness

i‚·iˆ Cost effectivity

i‚·iˆ Need for supervising

i‚·iˆ Interpersonal impact

These standards relate to past public presentation and behavior of an employee.

The first four – quality, measure, seasonableness and cost effectivity are nonsubjective in

nature. The last two – demand for supervising and interpersonal impact are

subjective. Objective steps are quantifiable and are hence extremely utile in

mensurating the public presentation of an employee. But public presentation of employees

should non ever be evaluated against quantifiable steps. Subjective

steps are dependent upon human opinion. They are prone to different

sort of mistakes stated before such as lenience or badness, cardinal inclination, aura

and the similar. To be utile, subjective steps must be based on a careful

analysis of the behavior viewed as necessary and of import for effectual occupation

public presentation.

Kudremukh Iron Ore Company Limited

M.P.Birla Institute of Management


i‚·iˆ Timing of Evaluation

How frequently should an employee be assessed? The general tendency is to

evaluate one time in three months, or six months, or one time in a twelvemonth. 70 % of the

organisations conduct public presentation assessment one time a twelvemonth, harmonizing to a study

conducted in 1997 by Arthur Anderson. Newly hired employees are rated more

often than the older 1s. Frequent appraisal is better than phased

rating. Feedback in the latter is delayed and the advantage of timely

remedial steps by the employee is lost. Frequent rating gives changeless

feedback to the ratee, therefore enabling him/her to better public presentation if there is

any lack. The public presentation of trainees and student nurses should be

evaluated at the terminal of several programmes.

Methods of assessments

The last to be addressed in the procedure of planing an assessment

programme is to find method ( s ) of rating. Numerous methods have

been devised to mensurate the measure and quality of employee ‘s occupation

public presentation. Each of the methods discussed could be effectual for some

intents, for some organisations. None should be dismissed or accepted as

appropriate except as they relate to peculiar type of employees. Broadly all

attacks can be classified into

i‚·iˆ Past -oriented methods and

i‚·iˆ Future oriented methods

Each group has several techniques. Some of them are explained in the

following subdivision.

Behavioral Anchored Rating Scales – The term used to depict a

public presentation evaluation that focuses on specific behaviours or sets as indexs of

Kudremukh Iron Ore Company Limited

M.P.Birla Institute of Management


effectual or uneffective public presentation, instead than on loosely stated adjectives

such as “ mean, above norm, or below mean ” . Other fluctuations are:

i‚·iˆ Behavioral observation graduated tables

i‚·iˆ Behavioral outlooks graduated tables

i‚·iˆ Numerically anchored evaluation graduated tables

Checklists – The term used to specify a set of adjectives or descriptive

statements. If the rater believes the employee possessed a trait listed, the rater

cheques the point ; if non, the rater leaves the point space. Rating mark from the

checklist equals the figure of cheques.

Critical Incident Technique – The term used to depict a method of

public presentation assessment that makes lists of statements of really effectual and really

uneffective behaviour for employees. The lists are combined into classs, which

vary with the occupation. Once the classs are developed and statements of effectual

and uneffective behaviour provided, the judge prepares a log for each

employee. During the rating period, the judge records illustrations of

critical behaviours in each of the classs, and the log is used to measure the

employee at the terminal of the rating period.

Forced Choice Method – This assessment method has been developed to forestall

judges from evaluation employees to high. Using this method, the judge has to

select from a set of descriptive statements, statements that apply to the

employee. The statements are weighted and summed to at, effectiveness index.

Forced Distribution – The term used to depict an assessment system similar to

rating on a curve. The judges are asked to rate employees in some fixed

distribution of classs. One manner to make this is to type the name of each

employee on a card and inquire the judges to screen the cards into hemorrhoids

matching to evaluation.

Kudremukh Iron Ore Company Limited

M.P.Birla Institute of Management

Graphic Rating Scale – The term used to specify the oldest and most widely

used public presentation assessment method. The judges are given a graph and

asked to rate the employees on each of the features. The figure of

features can change from one to one 100. The evaluation can be a matrix of

boxes for the judge to look into off or a saloon graph where the judge cheques off

a location relation to the judges evaluation.

Narrative or Essay Evaluation – This appraisal method asks the judge to

describe strengths and failings of an employee ‘s behaviour. Some

companies still use this method entirely, whereas in others, the method has

been combined with the in writing evaluation graduated table.

Management by Objectives – The direction by aims public presentation

assessment method has the supervisor and employee get together to put aims

in quantifiable footings. The assessment method is worked to extinguish

communicating jobs by the constitution of regular meetings, stressing

consequences, and by being an on-going procedure where new aims have been

established and old aims are modified as necessary in visible radiation of changed


Paired Comparison – The term used to depict an assessment method for

ranking employees. First, the names of the employees to be evaluated are

placed on separate sheets in a pre-determined order, so that each individual is

compared with all other employees to be evaluated. The judge so cheques

the individual he or she feels has been the better of the two on the standard for each

comparing. Typically the standard is the employees over all ability to make the

present occupation. The figure of times a individual is preferred is tallied, and the run

developed is an index of the figure of penchants compared to the figure

being evaluated.

Kudremukh Iron Ore Company Limited

M.P.Birla Institute of Management


Ranking – The term ranking has been used to depict an alternate method of

public presentation assessment where the supervisor has been asked to order his or her

employees in footings of public presentation from highest to lowest.

Weighted Checklist – The term used to depict a public presentation assessment

method where supervisors or forces specializers familiar with the occupations being

evaluated prepared a big list of descriptive statements about effectual and

uneffective behaviour on occupations.

i‚·iˆ Performance Interview

Performance Interview is another measure in the assessment procedure. Once the

Appraisal has been made of employees, the raters should discourse and reexamine the

public presentation with the ratees, so that they will have feedback about where they

base in the eyes of the higher-ups. Feedback is necessary to consequence betterment

in public presentation, particularly when it is equal. Specifically Performance

Interview has three ends

i‚·iˆ To alter behavior of employees whose public presentation does non run into

organisational demands or their ain personal ends.

i‚·iˆ To keep the behavior of employees who perform in an acceptable

mode, and

i‚·iˆ To acknowledge superior public presentation behavior so that they will be


i‚·iˆ Use of assessment informations

The concluding measure in the rating procedure is the usage of rating informations. The

HR section must utilize the informations and information generated through

public presentation rating. In one manner or the other, informations and information end products of

a public presentation assessment programme can critically act upon employer-employee

wages chances. Specifically the informations and information will be utile in the

following countries of HRM

Kudremukh Iron Ore Company Limited


i‚·iˆ Remuneration disposal

i‚·iˆ Validation of choice programmes

i‚·iˆ Employee preparation and development programmes

i‚·iˆ Promotion, transportation and lay-off determinations

i‚·iˆ Grievance and subject programmes

i‚·iˆ HR planning

Employees have become misanthropic about the public presentation direction


The direction can

i‚·iˆ Reinforce Positive Behaviors: “ Reinforcing positive behaviour will

increase the chance of that behaviour. ”

i‚·iˆ Uncouple Employee Development and Compensation Discussions:

Salary reappraisals should happen individually on an one-year footing.

i‚·iˆ Make Certain that the Performance Standards are Clear and

Accomplishable: Performance steps must be made crystal clear. Use

quantitative instead than qualitative steps whenever possible.

i‚·iˆ Make Certain the Performance Measures are Relevant: Each

public presentation step should be relevant to each peculiar employee.

i‚·iˆ Provide Team and Customer Feedback: Performance feedback from

squad members and clients is frequently much more utile than supervisory


In drumhead, most employees find their public presentation reviews useless, but

there are many stairss that direction can take to do them much more


Kudremukh Iron Ore Company Limited

M.P.Birla Institute of Management

Title: How to Better the Effectiveness of Performance Management and

Appraisal by Get the better ofing the Root Cause of the Problem

Writer: Julie Freeman

Website referred:

This article explores why bing formal and informal attacks to

Employee Performance Management and Appraisal ( EPMA ) tend to work good

plenty in theory, but fail to run into outlooks in pattern.

Organizations encourage, even impulse, their directors to speak informally with

their employees about their public presentation on an on-going footing. However, this

seldom happens. Furthermore, even when directors do speak to their employees, the

communicating frequently falls short of holding the coveted consequence on their morale,

motive, and productiveness. Despite our best attempts to day of the month, directors still report

that they are uncomfortable giving feedback and discoursing public presentation with

their employees, particularly if hapless public presentation is a factor. It identifies the root

cause of the jobs associated with giving and discoursing. Performancerelated

information in formal and informal scenes and presents a solution to

get the better of them. Assorted suggestions for how the solution can be applied to run into

differing single or corporate demands are besides outlined.

Merely approximately 10 per cent of the managerial population has a natural ability

to discourse public presentation with their employees in an effectual manner.

Harmonizing to the writer, the root cause of the job does non look to

prevarication in a deficiency of ability within the managerial population to candidly and accurately

buttocks and measure an employee ‘s public presentation and potency. Actually most

directors can make this really good. The root cause of the job is that, to a

greater or lesser extent, the huge bulk of directors can non really interpret

what they know about that public presentation into utile information and so

communicate it to the employee in an effectual and practical manner regardless of

the method they are asked to utilize. The proposed solution for such a job

harmonizing to the writer does non lie in seeking to better the proficient elements of

any given attack.

The Performance Appraisal involves 4 individuals in a typical rating

i‚·iˆ The employee ( referred as Appraisee )

i‚·iˆ Reporting officer

i‚·iˆ First Reviewing officer

i‚·iˆ Second Reviewing officer

Kudremukh Iron Ore Company Limited

M.P.Birla Institute of Management


The Employee is the individual whose public presentation is to be rated.

Reporting Officer is the immediate Supervisor or the caput under which the

employee plants.

First Reporting officer and Second Reporting officer are the officers in the

subsequent degrees of hierarchy in the organisation ( mention annexure ) .

The assessment system is divided into two parts:

A. Self Appraisal:

To be filled by the appraisee. It gives an chance for describing his/her

normal occupation duties, particular undertakings handled, defects in public presentation,

aptitude etc. It carries a upper limit of 5 recognition points.

B.Performance Appraisal:

a ) The assessment is in regard of 12 traits, which encompasses all

indispensable countries of work. Evaluation of each trait is intended to

reflect the potency in the person and his public presentation in different

domains of work.

B ) Each trait has been given a weightage and is to be assessed on a

5opint Rating Factor ( RF ) . The relevant RF is to be multiplied by

the weightage points by several RF tick [ A? @ _PDUNHG_ E\_ WKH_

Reporting officer, First Reviewing officer and Second reviewing


degree Celsius ) Wherever an employee is assigned a RF of 1 or 5, the valuator

should confirm his evaluation with extra inside informations. Where an

employee has been assigned a RF of 1 or 2, the valuator should

bespeak the attempts made by them to take the lack during

that twelvemonth. ( Separate sheet to be attached if necessary. )

vitamin D ) For the intents of publicity, the entire recognition points given by

Reporting Officer, First Reviewing Officer and Second Reviewing

Officer will be given weightage @ 20 % , 40 % and 40 % severally.

vitamin E ) The maximal recognition points that can be earned by an Appraisee is

125 and the classification at different recognition points is as under:

101 and above recognition points = Outstanding

76 to 100 recognition points = Very Good

51 to 75 recognition points = Good

26 to 50 recognition points = Average

Less than 26 recognition points = Poor

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