MAJOR PROJECT REPORT

ON
“PERFORMANCE EVALUATION OF HUMAN RESOURCES AT
POWER FINANCE CORPORATION LTD.”
SUBMITTED TO
BHAI PARMANAND INSTITUTE OF BUSINESS STUDIES
(Government of NCT of Delhi)
Shakarpur-92

(Affiliated To Guru Gobind Singh Indraprastha University, Delhi)

IN FULFILLMENT OF
BACHELOR OF BUSINESS ADMINISTRATION (BBA) (FIFTH SEMESTER -2018-
2021)

UNDER THE SUPERVISION OF: SUBMITTED BY:

Mr. GTVLN CHARYULU ANKIT AGGARWAL
BBA DEPARTMENT BBA (6th SEM)
BPIBS 00311401718
 Certificate of Project Guide

This is to certify that the dissertation entitled “PERFORMANCE

EVALUATION OF HUMAN RESOURCES AT POWER
FINANCE CORPORATION LTD.’’ is the bona fide research work
carried out by MR. ANKIT AGGARWAL student of BBA, at BHAI
PARMANAND INSTITUTE OF BUSINESS STUDIES,
Department of Business Administration during the year 2020-2021, in
partial fulfillment of the requirements for the award of the Degree of
Bachelor in Business Administration and that the dissertation has not
formed the basis for the award previously of any degree or diploma to
the best of my knowledge and belief.

Mr. GTVLN CHARYULU

BBA Department
BPIBS
 Declaration

I hereby declare that this project work entitled “PERFORMANCE

EVALUATION OF HUMAN RESOURCES AT POWER
FINANCE CORPORATION LTD.” is a record of an original work
done by me under the guidance of Mr. GTVLN CHARYULU and
this project is submitted in the partial fulfillment of the requirements
for the award of degree of Bachelor of Business Administration. The
results embodied in this thesis have not been submitted to any other
university or institute for award of any degree or diploma.

ANKIT AGGARWAL
6th Semester
00311401718
 Acknowledgement

A Macro Project is a golden opportunity for learning and self –

development. I realize that I may not have come this far without the
guidance, help and support of people who have acted as torch bearers
in this journey. I am highly indebted to Mr. GTVLN CHARYULU,
BBA department, BPIBS for guiding me throughout this project
despite being in a very busy schedule. Lastly, but most importantly, I
wish to thank my respondents heartily for contributing their precious
time for the study to be conducted successfully.

ANKIT AGGARWAL
6th Semester
00311401718
 TABLE OF CONTENT

S.NO. CHAPTER CONTENT

Certificate of project guide

Acknowledgement

Chapter 1 Introduction

Objectives of the Study

Review of Literature

Research Methodology

Limitations of Study

Chapter 2 Profile of the Organization

Chapter 3 Analysis and Interpretation of Data

Conclusions and Recommendations

Chapter 4

Bibliography

Annexure
 CHAPTER -I

INTRODUCTION

Human Resource Management

HRM is the strategic approach to the effective management of

people in a company or organization such that they help their
business gain a competitive advantage. It is designed to maximize
employee performance in service of an employer's strategic
objectives. Human resource management is primarily concerned
with the management of people within organizations, focusing on
policies and systems .

Objectives of human resource management

The objectives of HRM can be broken down into four categories:

• Societal objectives: Measures put into place that respond to the ethical
and social needs or challenges of the company and its employees. This
includes legal issues such as equal opportunity and equal pay for equal
work.
• Organizational objectives: Actions taken that help to ensure the
efficiency of the organization. This includes providing training, hiring the
right amount of employees for a given task or maintaining high employee
retention rates.
• Functional objectives: Guidelines used to keep the HR functioning
properly within the organization as a whole. This includes making sure
that all of HR’s resources are being allocated to its full potential.
• Personal objectives: Resources used to support the personal goals of
each employee. This includes offering the opportunity for education or
career development as well as maintaining employee satisfaction.

COMPONENTS

1. Recruitment: This is the most challenging task for any HR manager. A

lot of attention and resources are required to draw, employ and hold the
prospective employees. A lot of elements go into this function of
recruitment, like developing a job description, publishing the job posting,
sourcing the prospective candidates, interviewing, salary negotiations and
making the job offer.
2. Training and Development: On the job training is the responsibility
of the HR department. Fresher training may also be provided by some
companies for both new hires and existing employees. This Fresher
training is mainly done to make the employees up to date in their
respective areas as required by the company. This function makes the
employees understand the process and makes it easy for them to get on
their jobs with much ease.

3. Compensation and Benefits: A company can attain its goals and

objectives if it can acclimatize to new ways of providing benefits to the
employees. Some of the benefits given by companies are listed below for
our understanding:

• Working hour flexibility

• Extended vacation

• Dental/Medical Insurance

• Maternal/Paternal Leave

• Education Reimbursement for children

4. Performance Appraisal: The employees of any organization will be

evaluated by the HR department as per the performance. This function of
Human Resource Management is to help the organization in finding out if
the employee they have hired is moving towards the goals and objectives
of the organization. On the other hand, it also helps the company to
evaluate whether the employees needs improvement in other areas. It also
helps the HR team in drawing certain development plans for those
employees who have not met the minimal requirements of the job.
PERFORMANCE APPRAISAL
A performance appraisal is a regular review of an employee's job performance
and overall contribution to a company. Also known as an "annual review,"
"performance review or evaluation," or "employee appraisal," a performance
appraisal evaluates an employee’s skills, achievements and growth, or lack
thereof.
Companies use performance appraisals to give employees big-picture feedback
on their work and to justify pay increases and bonuses, as well
As termination decisions. They can be conducted at any given time but tend to
be annual, semi-annual or quarterly.
Performance Appraisal is the systematic evaluation of the performance of
employees and to understand the abilities of a person for further growth and
development.
Performance appraisal is generally done in systematic ways such as:

1. The supervisors measure the pay of employees and compare it with

targets and plans.
2. The supervisor analyses the factors behind work performances of
employees.
3. The employers are in position to guide the employees for a better
performance.
 Objectives of Performance Appraisal

Performance Appraisal can be done with following objectives in mind:

• To maintain records in order to determine compensation packages, wage

structure, salaries raises, etc.
• To identify the strengths and weaknesses of employees to place right men
on right job.
• To maintain and assess the potential present in a person for further growth
and development.

• To provide a feedback to employees regarding their performance and

related status.
• To provide a feedback to employees regarding their performance and
related status.
• It serves as a basis for influencing working habits of the employees.

• To review and retain the promotional and other training programs.

Appraisal tools and techniques

1. Management by Objectives (MBO):

Management by objectives (MBO) is the appraisal method where managers and
employees together identify, plan, organize, and communicate goals. After
setting clear goals, managers and subordinates periodically discuss the progress
made to control and debate on the feasibility. This process usually lays more
stress on tangible work or career-oriented goals. So, intangible aspects like
interpersonal skills, job commitment, etc. are often brushed under the rug. This
method is slightly expensive and time intensive.
2. 360-Degree Feedback:
Once-in-a-year performance appraisals are lackadaisical and don’t work.
Workers need ongoing communication with team leaders and managers. A
continuous process, like 360-degree feedback, can help employees stay
motivated. This is one of the most widely used appraisal methods. In 360-
degree feedback, every employee in an organization appraises his/her
managers, peers, customers, suppliers, and also does a self-evaluation. This
method ensures effective performance analysis and Total Employee Involved
(TEI). If not handled properly, this method can also suffer from the
subjectivity of the appraiser.

4. Assessment Centre Method:

The assessment center method tests employees in a social-related situation.

This concept was introduced way back in 1930 by the German Army but it
has been polished and tailored to fit today’s environment. Employees are
asked to take part in situation exercises like in-basket exercises, work groups,
simulations, and role-playing exercises that ensure success in a role.
While it gives an insight of the employee’s personality (ethics, tolerance,
problem-solving skill, introversion/extroversion, adaptability, etc.), it can also
breed unhealthy competition among the
workers and bears adverse effects on low
performers.

5. Behaviorally Anchored Rating

Scale (BARS):

Behaviorally anchored rating scales (BARS)

bring out both the qualitative and quantitative
benefits in a performance appraisal process.
BARS compares employee performance with
specific behavioral examples that are anchored to numerical ratings. This
performance appraisal method is said to be better than the traditional
methods. BARS provides clear standards, improved feedback, accurate
performance analysis, and consistent evaluation. However, when done
manually it suffers from the usual distortions that are inherent in most review
methodologies.

6. Psychological Appraisals:

Psychological appraisals come in handy to determine the hidden potential of

employees. This method focuses on analyzing an employee’s future
performance rather than their past work. Qualified psychologists conduct a
variety of tests (in-depth interviews, psychological tests, discussions, and
more) to identify an employee’s emotional, intellectual, and other related
traits. However, it is a rather slow and complex process and the quality of
results is highly dependent on the psychologist who administers the
procedure.

7. Rating Scale:
The rating scale method offers a high degree of structure for appraisals. Each
employee trait or characteristic is rated on a bipolar scale that usually has
several points ranging from "poor" to "excellent" (or some similar
arrangement).

The traits assessed on these scales include employee attributes such as

cooperation, communications ability, initiative, punctuality and technical
(Work skills) competence.
The nature and scope of the traits selected for inclusion is limited only by the
imagination of the scale's designer, or by the organization's need to know.

8. 720 Degree:
A 720 degree feedback is performing a feedback after the main 360 degree
appraisal. Many management consultants feel that doing a comprehensive
360 degree appraisal isn’t complete in itself. They feel that an effective
procedure to measure improvements and receive feedback is essential for the
success of any appraisal. This gives a pre and post intervention result.

KRA
Key Responsibility Area (KRA): Each employee has responsibilities based
on their job role. These responsibilities are called KRAs and are described in
the employees Job Description document. Key performance indicator (KPI)
means a mechanism used to represent how well the company is able to reach
the business goals. Key result area (KRA), alludes to the sector of outcome
within the business organization, for which the department or unit is
responsible

.
Benefits of defining KRAs
 Allows linking of each job role to business strategy

 Top-down alignment of the organization

 Setting of unambiguous goals for employees

 Need based coaching and counseling

 Periodic measurement of outcomes

 Fair performance reviews

 Hiring employees based on organization needs

 PERFORMANCE EVALUATION OF
HUMAN RESOURCES AT POWER
FINANCE CORPORATION LTD.

PRIMARY OBJECTIVES:

To evaluate the performance of the most important RESOURCE in PFC ie.

Human resource.

To judge the effectiveness of current appraisal system at PFC.

 LITERATURE REVIEW

The amount of research regarding the topic “Performance Appraisal” is so vast.

The paper which is based on an observational study of the researchers’ daily
work experiences and review of literature identified constraints to
performance appraisal in employees in the institutions, which includes the
current knowledge in Performance Appraisal findings, as well as theoretical
and methodological contributions to a particular topic.

SanjayKarak and KrishnenduSen

Literature review Although the interest in and use of performance appraisal
have increased over the past 30 years, the practice of formally evaluating
employees has existed for centuries. As early as the third century AD., Sin Yu,
an early Chinese philosopher, criticized a biased rater employed by the Wei
dynasty on the grounds that "thy Imperial Rater of Nine Grades seldom rates
men according to their merits but always according to his like or dislikes"
(Patten, 1977,p.352). In 1648, the Dublin (Ireland) Evening Post allegedly rates
legislators using a rating scale based on personal qualities (Hackett, 1928).
According to Heilbronn (1953), the first industrial application of merit rating
was probably made by Robert Owen at his cotton mills in New Lanark,
Scotland, in the early 1800s. Wooden cubes of different degrees of merit were
hung over each employee's workstation.
As employee performance changed, so did the appropriate wooden cube. The
merit rating or efficiency rating in the Federal Civil Service has been in place
since at least 1887 (Petrie, 1950) and perhaps as early as 1842 (Lopez, 1968).
One impetus to the development of performance appraisal in U.S. industry
(Patten, 1977) can be traced to the work of industrial psychologists at Carnegie
Mellon University and their early work in salesman selection and "man-to-man"
rating forms on trait psychology (Scott, Clothier, & Spiegel, 1941). The manta-
man rating form was later used by the army in World War 1 to assess the
performance of officers (Scott et al., 1941), although formal PA probably began
in the United States in1813 (Bellows &Estep, 1954) when army General Lewis
Cass submitted to the War Department an evaluation of each of his men using
such terms as "a good-natured man" or "knave despised by all." Although the
man-to-man ranking by the department is not frequently used in industry
or in appraising performance, it can be an effective method for determining the
order of layoffs. In fact, in the late 1960sit was used by many companies that
experienced cutbacks in government contracts to make layoff and
retention

decisions (Patten, 1977). This technique was known as the "totem

approach" to personnel cutbacks. After World War I, many of individuals
associated with the work of the man-to-man appraisal secured positions in
industry, in part because of business leaders were impressed by the
contribution of industrial psychologists to army research. Despite early
criticisms (Rudd, 1921), the graphics rating scale increased in popularity and
remains predominant today. Just prior to and during World War II, the army
again sought assistance from psychologists to improve its rating system. The
outcome of these research efforts included the forced- choice and the critical-
incident approach to merit rating (Flanagan, 1949; Sisson, 1948). Appraisal
of industry employees became popular only after World War I, and appraisal
of managers was not widely practiced until after World War II. By the early
1950s, appraisal was an accepted practice in many organizations. In 1962,
performance appraisal was conducted in 61 % of the organization surveyed
(Spriegel, 19620) and typically top management was exempt from such ratings
(Whistler &Harper, 1962). After the passage of the
1964 civil Right Act and the 1966 and 1970 Equal Employment
Opportunity Commission (EEOC) guidelines for regulation of selection
procedures, legal considerations exerted strong pressure on the
organization to formalize their appraisal systems (De Vise, Morrison,
Shullman&Gerlach, 1986). Federal legislation and the civil rights and women's
movements of the 1960s and 1970s created the need for rapid improvements in
organizational appraisal practices. Several surveys of business organizations
have indicated that between 74% and 89% of those surveyed have a
formal performance appraisal &Viler, 1979; Lazer&Wilkstrom, 1977).
Further, surveys concerning the prevalence of formal appraisal systems
indicated that approximately 765 of the city governments and 100% of
the state governments sampled had appraisal systems. Large organizations
were more likely to have performance appraisal than smaller organizations
(95% and 84% respectively), and (74%) to middle (71 %) management levels
were more likely to have formal appraisals than top management (55%) (Laser
& Wilkstrom, 1977). Finally, in a recent study, approximately 96% of the
organizations surveyed that had an industrial/organizational psychologist on
staff also had at least one formal performance appraisal system
(Cleveland, Murphy, &Williams, 1989). In general, then, performance
appraisal appears to be nearly universal, and the apparent importance of
performance appraisal as a tool for managing human resources has increased.
Devers and colleagues (1986) point out two particular trends in the
practice of PA during the past 30 years. First, appraisal methods have evolved
from traits and essay approaches to such behavioral and results- oriented
methods as Behaviorally Anchored Rating Scales (BARS) and Management by
Objectives (MBO). A second trend is that the number of uses of PA in
organizations has increased during the past 30 years. The earliest use of
performance appraisal was as a basis for administrative decisions such as
promotions, salary increase and so on. Throughout the 1960s and 1970s,
however, performance appraisals were increasing used for employee
development and feedback, corporate planning, legal documentation, system
maintenance, and research. Finally, performance appraisal represents one of
the least popular aspects of human resource management.

As Meyer (1991) notes performance appraisal is one of the most frequent

sources of dissatisfaction in the entire human resource system; neither
supervisors nor sub- ordinates look forward to appraisal, and neither is
likely to be totally satisfied with the appraisal system in their organization.
George (1986) refers to the appraisal systems in many organizations as "sterile
paper chases". One possible reason for the widespread dissatisfaction with
performance appraisal in organizations is that the systems used by
organizations do not help them or their employees meet important goals.

Employee Performance
Every organization has been established with certain objectives to achieve.
These objectives can be achieved by utilizing the resources like men, machines,
materials and money. All these resources are important but out of these the
manpower is the most important. It plays an important role in performing tasks
for accomplishing the goals. The question arises that how these resources are
utilizes by manpower. Further, the business environment is changing drastically.
The environmental factors are uncontrollable. These are beyond control of
management of the firms. One has to adjust with the external factors to do the
business in the market. Every environmental factor like social, cultural, legal,
political, economic, technology and competition gets changed very fast. For
effective working the knowledge of these factors is must otherwise the plan will
misfire. In present situation it is difficult to predict about anything. It is
uncertain to say that what will happen tomorrow. Again the need for highly
skilled and dedicated manpower is felt who can give the best output. Nowadays
the markets 28 are also very competitive and there is cut throat competition. For
every organization it is difficult to start, survive, stabilize and excel in the
business. The firm that gets the advantage over other competitors through their
talented and dedicated manpower can take the lead in the market. The
contribution of employees on job is the most important factor for development
and excellence in business. The performance of employees on different jobs in
close coordination is needed for success of the unit. Employees are performing
different jobs in an organization depending upon the nature of the organization.
They mainly perform tasks like production, storage, manufacturing,
transportation, marketing, purchasing, distribution, promotion of business,
finance and accounting, human resource, research and public relations. All these
activities are inter-related to achieve the targets. These are to be performed by
the employees properly so they can give their best output at the job. This will
have great impact on the total production, sales, profit, progress and market
position of the company in the market. Various factors like skills, training,
motivation, dedication, welfare, management policies, fringe benefits, salary
and packages, promotion, communication etc. are responsible to encourage the
people to work sincerely and give their best output.
The importance of employees’ performance must be understood by the
management and sincere efforts must be put in that direction.

Cummings (1973)
In an article titled, “A Field Experimental Study of the Effects of Two
Performance Appraisal Systems”, reported the results of a field experiment
designed to test the effects of manipulating several elements of an operative
level performance appraisal system. First, the multi purposive nature of
appraisal in formal organizations is discussed. This is followed by a brief
overview of the literature on performance appraisal. The design and results of
the study at hand are then discussed.

Patton (1973)

In his paper on “Does performance appraisal work?” states that performance

appraisal can be a powerful force for performance improvement at both the
individual and the corporate level, but few companies in the US and even fewer
in Europe have learned to tap its full potential. Examining the differences
between European and US performance appraisal practices, the author finds that
some European companies have more than caught up with their American
counterparts. He offers guidelines to overcome some difficulties prevalent on
both sides of the Atlantic.

Randell (1973)

In his paper titled ““Performance appraisal: purposes, practices and conflicts”,

discusses the collection of information from and about people at work. It
attempts to structure the field, define key problems, expose sources of conflict
and point the way to resolving major difficulties.

Taylor and Wilted (1974) in their article titled “Capturing Judgment

Policies: A Field Study of
Performance Appraisal” used mathematical models of judgment policy for
evaluating 625 performance reports during a single rating cycle. Linear and
nonlinear analyses are used to describe the cues most important in determining
the overall ratings. In addition, performance rating policy is compared with
stated policy for each of the 40 raters.
Bedean (1976)
In his paper titled “Rater Characteristics Affecting the Validity of Performance
Appraisals” states that the task of developing effective performance appraisal
systems is one of the most preferred contemporary problems of personnel
administration. An abundance of literature is available detailing the problems
and difficulties inherent in subordinate appraisals. Numerous studies have made
suggestions for rating format and content changes. Some have even suggested
the elimination of appraisal. More recently, an identifiable body of knowledge
which seriously casts doubt on the use of supervisor’s judgment in evaluating
employee performance has begun to emerge. The purpose of this paper is to
explore this emerging body of knowledge and to examine its ramifications for
performance appraisal.

RESEARCH METHODOLOGY

"Research is creative and systematic work undertaken to increase the

stock of knowledge, including knowledge of humans, culture and society,

and the use of this stock of knowledge to devise new applications."

It is used to establish or confirm facts, reaffirm the results of previous work,

solve new or existing problems, support theorems, or develop new theories. A
research project may also be an expansion on past work in the field. Research
projects can be used to develop further knowledge on a topic, or in the example
of a school research project, they can be used to further a student's research
prowess to prepare them for future jobs or reports. To test the validity of
instruments, procedures, or experiments, research may replicate elements of
prior projects or the project as a whole. Research in common parlance refers to a
search for knowledge. Research can simply be defined as the task of searching
from available data to modify a certain results. Research Methodology is the
blueprint of conducting research. It is a systematic way to solve a problem. It is
basically the science of studying how research is to be carried out. Essentially,
the procedures by which researchers go about their work of describing,
explaining and predicting phenomena are called research methodology. The
main aim is to give the work plan of research.
It includes the entire process used to collect information and data for the
purpose of making decisions and conclusions.

Research process applied

 Defining the objectives of the study which is related to ‘performance

appraisal’ of PFC
 Reviewing literature which included study of articles, papers, theories,
performance appraisal policy of PFC etc.
 Framing questionnaire
 Collecting the responses from the employees
 Analysis of feedback obtained
 Drawing conclusions and interpretations and providing suggestions.

Research Problem refers to some difficulty which a researcher experiences in

the context of either a theoretical or particular situation and wants to obtain a
solution for the same. As Performance Appraisal plays a very vital role in every
organization to motivate employees by giving rewards which enhances the
quality of their talent which in turn increases the productivity and efficiency of
the organization. So, it is very essential that we conduct studies and experiments
to improve the appraisal system. The main motive behind this study was to
understand the effectiveness of the current appraisal policy, process and
programs through employees’ feedback at Power Finance Corporation Ltd.

Research Design: After devising the problem and setting the objectives, the
next step is to prepare the research design. A research design is the arrangement
of conditions for collection and analysis of data in a manner that aims to
combine the relevance to the research purpose with economy in procedure. It’s a
conceptual structure within which a research is conducted; it constitutes the
blueprint for the collection, measurement and analysis of data. There are two
types of research designs:

a) Exploratory research design: This is used in formulate research studies.

The main purpose of such study is to formulate a problem for more
precise investigation or of developing the working hypothesis from an
operational point of view. The main emphasis is on the discovery of ideas
and insights. It is conducted through the survey of concerned literature
and experience survey.
b) Descriptive research design: This is used in descriptive research studies
which are concerned with describing the characteristics of a particular
 individual, or a group. Here, structured and well thought out instruments
should be used for collection of data. This research design takes enough
provision for protection against bias and must maximize reliability.

Research design of the project: Descriptive Research

Sample design: A sample design is a definite plan for obtaining a sample from
a population.

Sample: All the items in any field of inquiry constitute a ‘Universe’ or

‘Population’. Sometimes it’s not possible to collect the data from entire
population and hence a representative group which forms the ‘sample’.

All the employees in PFC formed the population but since, PFC is an
organization with approximately 500 employees therefore it became a very
difficult task to obtain feedback from all the employees because of the time
constraint and other restrictions. Hence, a sample was chosen from the
employees of PFC.

Sample Unit: A sample unit is something or someone on whom the research is

conducted. It can be a geographical unit, social unit, individual unit etc.

In this research, a selected employee formed a sample unit.

Sample size: It defines the number of elements in the sample.

The size of the sample was 50.

Sampling: The process of selection of sample is called ‘sampling technique’.

There are two techniques of sampling namely ‘Probability Sampling’ and

‘Nonprobability Sampling.’

• Probability Sampling: A Probability sampling is a random or a chance

sampling. Here every item of the universe has an equal chance of
inclusion in the sample. The results obtained from probability sampling
can be assured in terms of probability. It ensures the law of Statistical
Regularity which states that if on an average the sample chosen is a
 random one, the sample will have the same characteristics as the
universe.

• Non-probability Sampling: A Non-probability sampling is a deliberate

or a biased sampling procedure which does not afford any basis for
estimating the probability that each item in the population has of being
included in the sample. In this design, a personal element has a large
chance to enter and there is a danger of bias. Quota sampling is an
example of this kind of sampling.

Sampling used in this project: Probability Sampling.

Data Collection: For achieving the set objectives of the project, one has to
closely analyze the data which has to be collected first. This data is acquired
from two sources namely Primary sources and Secondary sources.

• Primary Sources: Here data obtained is called primary data. This type
of data is collected for the very first time and for the particular purpose
of conducting research.

Primary data sources were the employees chosen in the sample. The tool used to
collect this data was the questionnaire which was distributed amongst the
employees, either through e-mails or through direct communication.

• Secondary Sources: The data collected from these sources is called

secondary data. This is readily available and has been collected and
analyzed by someone before.

Secondary sources were certain journals, articles, books which were published
in this area and written by recognized authors, Performance Appraisal Policy of
PFC.

Data analysis: It is basically understanding and analyzing the data to draw

conclusions and to form the interpretations. Data analysis is done from texts and
numeric information which have been obtained through the help of
questionnaire. This data was being converted into presentable and appropriate
graphical presentations.

Tools which were used to analyze the data:

• PERCENTAGE ANALYSIS: Percentage analysis is one of the basic

statistical tools which is widely used in analysis and interpretation of
primary data. It deals with the number of respondents response to a
particular question is percentage arrived from the total population
selected for the study. It is one of the simple forms of analysis which is
very easy for anyone to understand the outcome of the research. It is
normally used by commercial research organization and pictorially
presented with different diagrams.

• VARIOUS GRAPHS: A good graph or chart can show as much as

several paragraphs of words. There are several different types of charts
and graphs. The four most common are probably line graphs, bar graphs
and histograms, pie charts, and Cartesian graphs. They are generally used
for, and are best for, quite different things.

• Bar graphs to show numbers that are independent of each other.

Example data might include things like the number of people who
preferred each of Chinese takeaways, Indian takeaways and fish and
chips.

• Pie charts to show you how a whole is divided into different parts.
You might, for example, want to show how a budget had been spent on
different items in a particular year.
 • Line graphs show you how numbers have changed over time.
They are used when you have data that are connected, and to show
trends, for example, average night-time temperature in each month of the
year.

• Cartesian graphs have numbers on both axes, which therefore

allow you to show how changes in one thing affect another. These are
widely used in mathematics, and particularly in Algebra.

Hence, the collected data was interpreted with pictorial representations such as
bar graph, pie charts and others along with percentage analysis.
 LIMITATIONS OF THE STUDY

As every conducted study cannot be considered full-proof because of certain

limitations and restrictions it faces. The limitations of this study are listed
below:

a) Limited area: The area of study was very limited which was only Delhi-
NCR. Any organization established outside this area was not considered.

b) Limited time: There was limited time in which this study was completed.
The time frame was limited and hence this study was covered under a lot
of pressure of time.

c) Few interactions: There was a little interaction and that too with few
people because of the limited area.

d) Dynamic nature of the environment: Since change is the inevitable and

hence what is relevant today might not be true and relevant tomorrow.
 CHAPTER -2

PROFILE OF THE ORGANISATION

Power Finance Corporation Ltd. is an Indian financial institution. Established
in 1986, it is the financial back bone of Indian Power Sector. PFC's Net worth as
on 30 September 2018 is INR 383 billion. PFC is the 8th highest profit making
CPSE as per the Department of Public Enterprises Survey for FY 201718. PFC
is India's largest NBFC and also India's largest Infrastructure Finance Company.
Initially wholly owned by the Government of India, the company issued an
Initial Public Offering in January, 2007. The issue was oversubscribed by over
76 times, which is one of the largest for an IPO of any Indian
Company.

PFC is listed on the Bombay Stock Exchange (BSE) and the National Stock
Exchange (NSE). It is also an ISO 9001:2000 certified company and enjoys the
status of Nirvana Company in India. On 6 December 2018, the Government of
India approved PFC's takeover of REC. The acquisition transaction was
completed on 28 March 2019 with PFC paying almost Rest. 14,500 Cars to the
Govt. of India for the 52.63% stake. The Corporation is headed by the Chairman
and Managing Director; who at present is Rajeev Sharma. The company has
three wings, each headed by a Functional Director namely, Commercial
Division, Projects Division and Finance & Financial Operations division.

The Commercial Division looks after the credit appraisal and categorization of
borrower entities, power sector reforms, review & analysis. The Projects
Division controls the operation in various states and project appraisal. Finance s
Division looks after the Fund Mobilization and Disbursement. PFC is a lean
organization. The numbers of employees as on 31 March 2019 were around 500.
In 2017, PFC was granted approval by Ministry of Finance, Govt. of India, to
raise funds under section 54EC of the Income Tax Act 1961. PFC was the first
company to obtain such an approval post the budget announcement in February
2017. PFC has raised more than Rest. 1,000 Cars under these bonds since their
launch in 2017. Since its inception, PFC has been providing financial assistance
to power projects across India including generation, transmission, distribution
and RM&U projects. Recently, it has forayed into financing of other
infrastructure projects which have backward linkages to the power sector like
coal mine development, fuel transportation, oil & gas pipelines etc. The
borrower profile includes State Electricity Boards, State sector power utilities,
Central sector power utilities and Private sector companies. PFC is also the
nodal agency for the implementation of the ambitious Ultra Mega Power Plants
(UMPPs) and the R-APDRP programmer of Govt. of India. The company also
has the mechanism of rating different state Power Utilities on its performance.
Subsidiary and Associate Companies PFC presently has ten subsidiary
companies. PFC Consulting Ltd. (PFCCL) is a wholly owned subsidiary
handling fee based services. The six other companies namely Orissa Integrated
Power Limited, Coastal Karnataka Power Limited, Coastal Tamil Nadu Power
Limited, Coastal Maharashtra Power Limited, Jharkhand Integrated Power
Limited and Akaltara Power Limited, are SPVs (Shell Companies) created for
implementing the flagship Ultra Mega Power Projects. After purchase of the
entire holding of Govt of India in Rural Electrification Corporation
Limited(REC) in FY 2018-19, REC has now become a subsidiary of PFC. PFC
is also one of the promoters in Energy Efficiency Services Limited (EESL), with
NTPC, Powergrid and REC being the other promoters. EESL is currently
implementing of world's largest energy efficiency portfolio and has been
instrumental in energy savings of more than 50 billion kWh/year and estimated
GHG reduction of more than 40 million tons CO2/year.

Operations:
Since its inception, PFC has been providing financial assistance to power
projects across India including generation, transmission, distribution and
RM&U projects. Recently, it has forayed into financing of other infrastructure
projects which have backward linkages to the power sector like coal mine
development, fuel transportation, oil & gas pipelines etc. The borrower profile
includes State Electricity Boards, State sector power utilities, Central sector
power utilities and Private sector companies

CSR & Sustainability:

As a social responsible entity, Power Finance Corporation endeavors to:

• Promote and leverage green technologies to produce goods and services

that contribute to social and environmental sustainability.
 • Take up the projects that provide energy, water and sanitation facilities to
the communities.
• Take up activities to support “Differently Abled Persons” and the “Health
Sector”.
• Take up the issues which are of foremost concern in the national
development agenda like safe drinking water for all, provision of toilets
especially for girls etc.
• Contribute to inclusive growth and equitable development in society
through education, capacity building measures etc.

Awards & Recognitions

1 MOU Excellence Award 2009-10 January 2012

2 KPMG-Infrastructure Today Award 2011 December 2011

3 Diani Backer India Pride PSU Award 2011 October 2011

4 SCOPE Commendation Certificate 2009-10 April 2011

5 Global HR Excellence Awards 2011 February 2011

6 KPMG-Infrastructure Today Award 2008 December 2008

7 India Power Award 2008 November 2008

8 Golden Peacock Award 2007 September 2007

9 Nirvana Company June 2007

Appraisal Technique at PFC

The committee shall ensure compliance of the Bell curve approach. The
following shall be composition of the Group for the purpose of complying
with the ‘Bell Curve Approach’. The below ratings are given to the
employees based on the employee’s performance.
 The Annual Appraisal Reports after being reviewed and accepted by the
concerned authorities shall be placed before a Moderation Committee which
shall review the ‘Ratings’ as reflected in the AAR of the concerned
Executive. Whichever the ‘Excellent & Unsatisfactory’ Ratings have not
been substantiated with critical incidents/ documents, the ratings shall be
downgraded/ upgraded suitably by the Moderation committee. The
committee shall ensure compliance of the bell curve approach. The
following shall be composition of the Group for the purpose of
complying with the ‘Bell Curve Approach’ for payment:

The committee for the purpose of moderation of ratings of the AARs of

Executives at various levels shall be as under:

Where the overall assessment as rated by a higher authority is being changed

by the Moderation Committee, a communication to this effect may be sent
informing the Reviewing/ Accepting Authority of such changes.
 Chapter- 3

Data Analysis and Interpretation

DATA ANALYSIS AND INTERPRETATION:-
The data was collected at the Corporate Office of PFC with the help of a well-
structured questionnaire formed for the purpose of study. There were 16
questions in all which were being analyzed in this project with the help of tools
like Percentage analysis and Pictorial representations like pie charts, bar graphs
etc.

❖ Gender

Gender No. of respondents Percentage %

Male 30 60

Female 20 40

Total 50 100
INTERPRETATION:
60% of the respondents are male and 40% of the respondents are female. From
the above table we can conclude that, the majority of the respondents were
belongs to Male group.

Are you aware of the objectives of performance appraisal

system in your organization?

Answer choices No. of respondents Percentage %

Don't know 8 16

Some what 22 44

Very Much 20 40

Total 50 100
INTERPRETATION:

16% of the respondents are not aware of the performance appraisal objectives,
44% of the respondents are somewhat aware and 40% respondents are very
much aware of it.
 ❖
How many years of experience are you having?

Answer choices No. of respondents Percentage %

Between 2-5 years 30 60

Between 5-8 years 10 20

+8 years 10 20

Total 50 100

INTERPRETATION:

60% of the respondents have more than 8 years of experience, 20% of the
respondents have around 5 to 8 years of experience and 20% respondents have 2
to 5 years of work experience.
 ❖
Do you hold meetings in the beginning of the year to explain
and clarify activity task and goals to be achieved?

Answer choices No. of respondents Percentage %

Yes 48 96

No 2 4

Total 50 100

INTERPRETATION:

96% of the respondents say Yes that meetings held in the beginning of every
year. Hence this concludes that meetings held to explain and clarify activity task
and goals to be achieved in PFC.
 ❖

Do you think you are being participated in current

performance appraisal process?

Answer choices No. of respondents Percentage %

Yes 44 88

No 6 12

Total 50 100

INTERPRETATION:

88% of the respondents say yes that they are being participated in the current
appraisal system at PFC.
 ❖
To what extent are you satisfied for point allocation on the
basis of KRA'S and managerial dimensions?
Answer choices No. of respondents Percentage %

Uncertain 5 10

Satisfied 38 76

Fully Satisfied 7 14

Total 50 100

INTERPRETATION:

7% of the respondents are fully satisfied, 76% of the respondents are satisfied
with the point allocation on the basis of KRA’s and Managerial dimensions.
Whereas 10% of the respondents are uncertain about the same.
 ❖ Does performance appraisal affect the working efficiency of
employees?

Answer choices No. of respondents Percentage %

Yes 50 100

No 0 0

Total 50 100

INTERPRETATION:
100% of the respondents are fully agreed that performance appraisal does affect
The working efficiency of the employees.
 ❖

Should more training be given to employees who fall short in

completion of their targets?

Answer choices No. of respondents Percentage %

Disagree 0 0

Agree 50 100

Total 50 100

INTERPRETATION:

100% of the respondents are fully agreed that training should be given to
employees who fall short in completion of their targets.

Is Competencies a valid parameter for assessment?

 ❖

Answer choices No. of respondents Percentage %

Disagree 17 34

Agree 33 66

Total 50 100

INTERPRETATION:

66% of the respondents are fully agreed that Competency is a valid parameter
for the assessment of the appraisal at PFC whereas 34% of the respondents
fully disagree on this.
 ❖

Do you think that present performance appraisal system is

transparent and bias free?
Answer choices No. of respondents Percentage %

Yes 40 80

No 10 20

Total 50 100

INTERPRETATION:

80% of the respondents say that present performance appraisal is transparent

and bias free.
 ❖

Are you satisfied with the current performance appraisal

system?
Answer choices No. of respondents Percentage %

Dissatisfied 5 10

Satisfied 35 70

Highly Satisfied 10 20

Total 50 100

INTERPRETATION:

20% of the respondents are fully satisfied, 70% of the respondents are satisfied
with the current performance appraisal system at PFC whereas only 10% of the
respondents are dissatisfied with the same.
 FINDINGS

❖ 60% of the respondents are male and 40% of the respondents are
female. From this we get to know that the majority of the respondents
were belongs to the Male group.
❖ 16% of the respondents are not aware of the performance appraisal
objectives, 44% of the respondents are somewhat aware and 40%
respondents are very much aware of it.
❖ 60% of the respondents have more than 8 years of experience, 20%
of the respondents have around 5 to 8 years of experience and 20%
respondents have 2 to 5 years of work experience.
❖ 96% of the respondents say Yes that meetings held in the
beginning of every year. Hence this concludes that meetings held to
explain and clarify activity task and goals to be achieved in PFC.
❖ 88% of the respondents say yes that they are being participated in
the current appraisal system at PFC and only 12% of the respondents think
that they are not being participated in the appraisal system.
❖ 7% of the respondents are fully satisfied, 76% of the respondents
are satisfied with the point allocation on the basis of KRA’s and
Managerial dimensions. Whereas only 10% of the respondents are
uncertain about the same.
❖ 100% of the respondents are fully agreed that performance appraisal does
affects the working efficiency of the employees.
❖ 100% of the respondents are fully agreed that training should be given to
employees who fall short in completion of their targets.
❖ 66% of the respondents are fully agreed that Competency is a valid
parameter for the assessment of the appraisal at PFC whereas 34% of the
respondents fully disagree on this.
❖ 80% of the respondents say that present performance appraisal is
transparent and bias free.
❖ 20% of the respondents are fully satisfied, 70% of the respondents are
satisfied with the current performance appraisal system at PFC whereas
only 10% of the respondents are dissatisfied with the same.
 CHAPTER- 4

CONCLUSION AND
RECOMMENDATION
 CONCLUSION

For every organization human resources are the most important human assets.

They need to be motivated to perform their best for organizations success.

Timely performance evaluation helps an organization to know the strengths and

weaknesses of their employees.
Therefore its necessary to evaluate their performance for further training
processes.

Happily, the research revealed that the current performance appraisal at PFC is
very much effective. In this study, following conclusions can be drawn:
❖ Majority of the employees are well aware and satisfied with the
performance appraisal system at PFC.
❖ Employees find themselves motivated.

❖ Through this survey we get to know that PFC has a transparent appraisal
system.
❖ From the study conducted the following conclusions can be drawn.
 ❖ In order the dreams comes into reality and for turning liabilities into
assets one must keep rewarding their employees for better productivity.

❖ PFC Performance Appraisal System is bias free.

❖ Participation of employees in the appraisal system is also there.

❖ Finally I conclude that, majority of the employees are satisfied with the
Appraisal System of the organization. Only some employees are not
satisfied with the same because of the other reasons like competencies is
not a valid factor for the appraisal.

RECOMMENDATIONS AND SUGGESTIONS

As Performance Appraisal process is very much necessary and is very effective
in PFC yet I think the following suggestions will help in improving these
practices in the organization and can produce more effective output for the
financial backbone of Power Sector of India. These suggestions are listed
below:
❖ The employees who are moderately aware or are not aware of the
performance appraisal policy and process of the PFC should be oriented
with the main objectives of the policy and the process.
❖ In order to enhance the effectiveness of the appraisal programs in PFC, a
more individualistic approach should be adopted, like their personal goals
and major interest areas should be considered, so that a better and
positive training environment can be created.
❖ The suggestions, preferences and feedback of the employees should be
given a well thought so that the employees can attach and involve
themselves in the organization. It would also motivate them for producing
better outputs.
❖ Therefore, Power Finance Corporation can do slight modifications in the
appraisal program.
 Bibliography

https://en.wikipedia.org/wiki/Power_Finance_Corporation
https://pfcindia.com/
https://money.rediff.com/companies/Power-Finance-
CorporationLtd/14040029
www.moneycontrol.com/companyarticle/powerfinancecorporation/news/PFC
02
https://energy.economictimes.indiatimes.com/tag/powerfinancecorporation
https://www.business-standard.com/company/power-fin-corpn-12068/news
www.pfcindia.com/Home/VS/10175
https://www.pfcindia.com/Home/VS/10175

https://searchhrsoftware.techtarget.com/definition/human-
resourcemanagement-HRM
https://www.digitalhrtech.com/human-resource-basics/
https://shodhganga.inflibnet.ac.in/bitstream/10603/24981/11/11_chapter%20
2. Pdf
 QUESTIONNAIRE
TECHNIQUES OF REWARDING EMPLOYEES AT
POWER FINANCE CORPORATION LTD.

Gender: Department:
1. Are you aware of the objectives of performance appraisal
system in your organization?

 Very much
 Some what
 don’t know

2. How many years of experience are you having?

 Between 2-5 years

 Between 5-8 years
 Above 8 years

3. Do you hold meetings in the beginning of the year to explain

and clarify activity task and goals to be achieved?

 YES
 NO

4. Do you think you are being participated in current

performance appraisal process?

 YES
 NO

5. To what extent are you satisfied for point allocation on the

basis of KRA'S and managerial dimensions?
  FULLY SATISFIED
 SATISFIED
 DISSATISFIED
 UNCERTAIN

6. Does performance appraisal affect the working efficiency of

employees?

 YES
 NO

7. Should more training be given to employees who fall short in

completion of their targets?

 AGREE
 DISAGREE

8. Is Competencies a valid parameter for assessment?

 AGREE
 DISAGREE

9. Do you think that present performance appraisal system is

transparent and bias free?

 YES
 NO

10. Are you satisfied with the current performance appraisal

system?

 HIGHLY SATISFIED
 SATISFIED
 UNSATISFIED
 Thank You for Giving Your Valuable Time & Opinion

BHAI PARMANAND INSTITUTE OF BUSINESS STUDIES

FORMAT FOR PROJECT SUMMARY TO BE SUBMITTED TO PANEL AT

THE TIME OF PRESENTATION

1. TITLE : Performance Evaluation of Human Resource at Power Finance

Corporation Ltd.

2. PURPOSE OF THE STUDY : For the purpose of Major Project in Requirement

with curriculum of GGSIPU

3. OBJECTIVE OF STUDY :

i. To evaluate the performance of the most important RESOURCE in

PFC ie. Human resource

ii. ii. To judge the effectiveness of current appraisal program.

4. METHODOLOGY
• Research Design : Descriptive Research

• Data Collection Approach : Primary Data (Survey-Questionnaires)

• Sampling Method : Probability Sampling
• Measurement Techniques : Percentage Analysis and Graphical
Presentations
5. QUESTIONNAIRE(if any) : Yes (attached in Annexure)
 BHAI PARMANAND INSTITUTE OF BUSINESS STUDIES

EVALUATION SHEET FOR MAJOR PROJECT REPORT

Student Name : Ankit Aggarwal

Roll No. : 00311401718

Evaluator’s Feedback :________________________________________

Did The Student Contact You Regularly For Discussion? Yes/No

(Please Tick)

Report Is Approved / Disapproved : ____________________________

Marks Awarded : ___________________________

Signature of Evaluator:

Name:

Date:
 ATTENDANCE FOR MAJOR PROJECT REPORT

Name of the student : ANKIT AGGARWAL (00311401718)

Course : BBA (Gen)

Name of the supervisor: MR. GTVLN CHARYULU

S. No. Date Time Progress of Report Signature of Signature of

(Remarks) Student Supervisor

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.