A project on employee appraisal process in Hindustan Copper Limited

1
Employee Appraisal Process in
Hindustan Copper Limited
A Dissertation Report Submitted in partial fulfilment of requirements for the degree of
Bachelor of Business Administration
Submitted By:
Aniket Wilson
(Regd No- 2004000639051036)
Submitted to:
Mrs. Chandramalli Mishra
(Faculty of BBA)
Trident Academy of Creative Technology
Bhubaneswar, Odisha, India

2
GUIDE CERTIFICATE
This is to certify that the project report entitled is a bonafide work on
“Employee Appraisal Process in Hindustan Copper Ltd.” being. submitted
by Aniket Wilson (2004000639051036) to Trident Academy of Creative
Technology, Bhubaneswar in partial fulfilment of requirements of degree
of Bachelor of Business Administration (BBA) is an original work carried
out under my supervision and guidance.
……………………………….
Signature of Principal
(Dr. B. K. Mohanty)
…………………………… ……..……………………………
Signature Of H.O.D Signature of Guide
(Dr. Nargis Begum) (Mrs. Chandramalli Mishra)

3
EXAMINER CERTIFICATE
This is to certify that Mr. Aniket Wilson (2004000639051036) of
Trident Academy of Creative Technology has successfully completed
the dissertation work in “Employee Appraisal Process in Hindustan
Copper Ltd.” under the requirement of partial fulfilment of Bachelor of
Business Administration. His work is satisfactory.
…………………… …………………….
Internal Examiner External Examiner

4
ACKNOWLEDGEMENT
It is my privilege to work on the project “Employees Appraisal Process” at Hindustan
Copper Limited Ghatsila. At the very outset, I am obliged to HINDUSTAN COPPER
LIMITED for the permission to undertake training program and provide me the basic
infrastructure and facilities.
I express my sincere sentiments of gratitude to Mr. RAVI SHANKAR CHOUDHARY
(Manager H.R) who guided me throughout this project without his continuous
assistance without which this project would not have been a success.
It is this spirit of being associated with the Human Resource department and HCL in
general who inspired me to complete this project successfully.
I also convey my sincere gratitude to my college mentor Mrs. Chandramalli Mishra
for her guidance and support extended to me during my project. At the end I would
not forget to thank other members of HCL/ICC, MOUBHANDAR, who treated me
with respect and helped me to the best of their capacity.

5
UNDERTAKING
I declare that the project work presented in this report titled.
“Employee Appraisal Process in Hindustan Copper ltd.” submitted to
Trident Academy of Creative Technology in the partial fulfilment of the
requirements for the dissertation in the degree of Bachelor of Business
Administration (BBA) is my original work to the best of my knowledge. I
have neither plagiarized nor submitted the same work for the award of
any other degree.
Date: 25/04/2023 Name: Aniket Wilson
Place: Bhubaneshwar (2004000639051036)

6
TABLE OF CONTENTS
S.no Content Page no
1 Introduction 7-10
2 Industry Profile 11-18
3 Company Profile 19-33
4 Introduction to Human Resources 34
5 Objective Of Human Resources 35
6 Importance Of Human Resources 36-37
7 Employee Appraisal 38-49
8 HCL Appraisal Form Sample 50
9 Appraisal Forms 51-53
10 Type Of Appraisal Methods 54-61
11 Data Analysis 62-68
12 Findings and Suggestions 69
13 Conclusion 70
14 Appendix 71-74
15 Bibliography 75

7
INTRODUCTION
The employee appraisal process plays a pivotal role in organizations, serving as a
systematic and structured evaluation of employee performance, productivity, and
overall contribution to the organization's goals and objectives. This process
encompasses a range of activities aimed at assessing individual and team
achievements, identifying areas for improvement, providing feedback, and
recognizing exceptional performance. Understanding the employee appraisal
process is essential for organizations to effectively manage their workforce and
foster employee development. This study endeavors to provide a comprehensive
examination of the employee appraisal process, including its objectives,
methodology, and scope, while also addressing its limitations.
Appraisal is a process for evaluating and documenting how well an employee is
carrying out his or her job. It is part of a company’s performance management
system.
Performance appraisals are based on the employee’s progress against goals set once
a year with his or her manager. Usually, employees and managers will have check-
ins throughout the year; at the end of the year the manager assigns an overall rating.
The appraisal process gives employees feedback on their work, helps managers
make decisions about pay increases and bonuses, and identifies areas that need
improvement. Ongoing poor performance can lead to reprimands or termination.
Because performance appraisals affect an individual’s employment path, they can
be stressful for employees.

8
OBJECTIVE OF STUDY
The primary objective of this study is to gain a deeper understanding of the
employee appraisal process and its significance within organizations. By delving into
the intricacies of employee appraisal, we aim to achieve the following specific
objectives:
1. Explore the goals and purposes of employee appraisals: This study aims to
investigate the fundamental objectives of employee appraisals, including
fostering employee development, identifying training needs, supporting
performance management, aligning individual goals with organizational
objectives, and facilitating communication between employees and
management.
2. Analyse the various methods and techniques employed in employee
appraisals: The study seeks to examine the diverse approaches used in
evaluating employee performance, such as self-assessment, peer assessment,
supervisor evaluation, 360-degree feedback, and objective-based
assessments. By analysing the strengths and weaknesses of these methods,
we aim to identify best practices for organizations to ensure fair and accurate
evaluations.
3. Assess the effectiveness and fairness of the appraisal process: This study aims
to evaluate the extent to which employee appraisals effectively measure
performance and contribute to employee motivation, engagement, and job
satisfaction. Additionally, we will examine the fairness and transparency of
the process, considering factors such as bias, subjectivity, and the impact on
employee-employer relationships.
4. Understand the impact of employee appraisals on organizational
performance: By investigating the correlation between employee appraisal
outcomes and organizational success, we aim to identify how employee
performance evaluation contributes to key performance indicators, such as
productivity, innovation, employee retention, and overall organizational
effectiveness.

9
METHODOLOGY
To accomplish the study objectives, a mixed-methods research approach will be
employed, combining qualitative and quantitative data collection and analysis. The
following methodology will be implemented:
1. Review of existing literature: A comprehensive review of academic journals,
books, and relevant industry reports will be conducted to establish a
theoretical framework for the study. This review will provide insights into the
evolution of employee appraisal practices, theoretical models, and previous
research findings.
2. Surveys and interviews: Data will be collected through surveys administered
to employees and interviews conducted with managers, HR professionals, and
experts in the field. These primary data collection methods will enable us to
capture employee experiences, perceptions, and suggestions related to the
employee appraisal process, as well as gather insights from professionals with
expertise in performance management.
3. Case studies: Selected organizations will be analysed as case studies to gain
practical insights into their appraisal practices and understand the impact of
appraisal systems on employee motivation, job satisfaction, and overall
organizational performance. This qualitative analysis will provide rich
contextual information and real-world examples.
4. Data analysis: The collected data will be analysed using appropriate statistical
methods and qualitative techniques, such as content analysis, to identify
patterns, themes, and trends. This analysis will enable us to draw meaningful
conclusions and generate recommendations based on the study's findings.

10
SCOPS AND LIMITATIONS
The scope of this study encompasses employee appraisal processes across various
industries and organizational sizes. However, the focus will be on medium to large-
scale organizations. Limitations of the study include:
1. Generalizability: Findings may be context-specific and may not be directly
applicable to all organizations.
2. Subjectivity: Employee perceptions and experiences may be influenced by
individual biases, which can affect the accuracy of the collected data.
3. Time constraints: The study's duration may restrict the depth of analysis for
certain aspects of the employee appraisal process.
4. Data availability: The study's findings may depend on the availability and
reliability of the data obtained from the selected organizations and
participants.
By undertaking this study, we aim to contribute to the existing knowledge base on
employee appraisal processes, providing valuable insights and recommendations for
organizations striving to enhance their performance management practices and
maximize employee potential.

11
INDUSTRY PROFILE
The history of Indian copper industry goes back to 1967 with the incorporation of
Hindustan Copper Ltd (HCL) and thereafter acquisition of mines from public sector
National Minerals Development Corporation (NMDC). But the real twist in copper
story took with the opening this sector for private sector players in 1992 which saw
the involvement of Indo Gulf Corporation (now a part of Hindalco Industries) and
Sterlite Industries into copper smelting and refining through concentrate imports
from various mineral rich countries. Copper is a special metal for industrial
applications owing to its properties such as electrical conductivity, corrosion
resistance, ductility, malleability, and rigidity. Specific application of copper
includes power cables and wires, jelly filled cables, building wires, air conditioning
and refrigeration tubing, telecom, power, construction, transportation, handicrafts,
engineering, consumer durable and defense.
Compared with global markets, India has limited copper ore reserve contributing
about 0.31 % of world copper reserves. Mining production is just 0.2% of the world’s
production, whereas refined copper production capacity is about 4% of world’s
production. The size of Indian Copper Industry (consumption of refined copper per
annum) is around 6.6 lakh tons, which as percentage of world copper market is only
3%. As on 1.4.2020, HCL had access to around two-fifths of the copper ore reserves
and resources in India with an average grade 1.01%. Also, as on 1.4.2020, HCL had
reserves (proved & probable) of 167.08 million tons of ore with average grade of
1.32% and total reserves and resource of 570.40-million-ton ore with average grade
of 1.01% (based on UNFC system). Total copper resources in India are 12.16 million
tons of which 2.73 million tons constitutes reserves, both in terms of copper metal
as on 1.4.2015 as per NMI database (As per Indian Minerals Yearbook 2019, 58th
Edition, dated October 2020). There are three major players which dominates the
copper industry in Indian markets namely Hindustan copper Limited (HCL) in public
sector, M/s Hindalco Industries Ltd and M/s Sterlite Copper a Unit of Vedanta
Industries Ltd in Private Sector. Adani Group has recently announced to install 5
MTPA custom smelter plant named Kutch Copper Limited. Refined copper

12
production in India has declined significantly due to the permanent closure order
issued to Sterlite Copper for their Smelter/ refinery plant at Tuticorin by Tamandu
Government in May 2018. HCL is the only vertically integrated copper producer in
the country which produces refined copper from mined ore, while M/s Hindalco
Industries Ltd at Dahej in Gujarat and Sterlite Copper at Tuticorin in Tamil Nadu have
set up port based smelting and refining plants. However, there are few installations
to produce Electro-won copper, but their capacities are still very low, and
production is inconsistent. There are more than 1000 SMEs, MSMEs and
unorganized sector working in the downstream and secondary recycling of copper
Industries in India. In the fiscal year 2020-21, the copper ore production in India was
3.27 million tons. HCL has plans to increase its mining capacity from its current level
ore production to 12.2 million tons per annum in Phase-I in the next 7 to 8 years and
will take necessary action for further capacity enhancement to 20.2 million tons per
annum in Phase-II. Metal in concentrate production of HCL in FY 2020-21 was 23,866
tons. Refined copper production in India during FY 2020-21 was approx.3.63 lakh
tons (Vedanta- 1.01 lakh tons, HCL- Nil & Hindalco- 2.62 lakh tons), as compared to
4.08 lakh tons in FY 2019-20.

13
COPPER INSIGHTS
Some of the earliest uses of copper we know of dates to the cave men who used
axes and other weapons made of copper. All the way from the Egyptian pyramids
to Mohenjo Daro, archaeologists have discovered copper used to make statues and
even plumbing system. What surprised them was the fact the plumbing was found
to be still serviceable in our time.
Ancient belief system found to be based on scientific facts have proven the drinking
water in copper vessels due to the metal’s anti-fouling properties, considered to be
a ‘pure’ metal was for storing food.
Did you know that some of the fastest micro-processor in the world are made partly
from copper?
Can you believe a major part of the connectors and instrument parts used in space
crafts and rocket use copper?

14
HISTORY
The name copper is derived from the Greek word ‘chalkos’. It is also related to the
Greek mythology as it is said that it was associated with the goddess Venus.
The origination of this oldest known metal, copper, is not exactly known to humans
but it is estimated that it was discovered in around 900BC in the Middle East. A
copper locket has been found in Iraq that is around 8500 BC old. Smelting, one of
the processes that is used to refine copper, dates to around 4500 BC and the
smelting sites were in the areas of present-day Israel, Egypt, and Jordan at that
time. This metal was also used to make weapons, hammers, and axes. The people
in Egypt discovered that by adding tin to copper, the casting of the metal becomes
easier, and the metal was getting popular in the east mainly in China and India.
China started the process of hydrometallurgy in which a metal is separated from its
alloys. Indian people made various other crafts by using alloys of copper like icons
and lamps. The importance of this very useful metal was identified, and it was so
extensively used that the respective era of history is named as The Bronze Age
(2500 BC-600 BC).
The inventions of new technologies in the east were adopted by the whole world.
It was found that copper is a corrosion-free-substance and then it marked the
invention of a new use of copper in plumbing system and protecting wooden ships
from algae. The ships of Christopher Columbus used to have this copper guarding.
With time, more and more new uses, and new techniques to extract copper were
invented.
Copper coins have also played an important role in history as a medium of currency.
The earliest instance found of copper being used as a currency was in the form of
lumps in the 6th
century BC by the people of Italy. The shapes of copper lumps were
molded to coins with the invention of new copper alloys. Rulers like Julius Caesar
and Octavian’s use to have their own coins having their own symbols. This shows
that copper has been a prominent contributor to all the various aspects of history,
culture, technology, and medicine and is still used extensively.

15
Copper Producing Countries:
Copper is extracted from its ore that is mineral from such as sulfides and carbonates.
Although copper ore is found throughout the world, the major countries that
produce ore are: -
• Chile
• Peru
• China
• Democratic Republic of Congo
• United States of America
• Australia
• Russia
• Zambia
• Mexico
• Kazakhstan
• Canada
• Poland
• Zaire
• Indonesia
• Australia
• Argentina
• Brazil
• Korea
• Iran
• Laos
• Mongolia
• Saudi Arabia
• Sweden
The ore mines are located both on land as well as in the deep sea and according to
the United States Geological Survey, 2020, the Global Copper Reserves are
estimated at 870 million tones and the annual demand is 28 million tons. In 2020,
the total global Smelter production of copper stands at approximately 24.5 million
metric tons. From 2000 to 2020, refinery production of copper increased by 9.7

16
million metric tons. The following are the ten leading ore refining countries, which
account for maximum percentage of the total refined copper production, are: -
• Chile
• Peru
• China
• Democratic Republic of Congo
• United States of America
• Australia

17
Indian Copper Market
India does not provide a big market for copper. Due to shortage of copper mines
and a low percentage of productivity of copper in the mines, India suffers a loss in
the level of production, and it must completely depend on the copper ore imports.
Also, not many companies are indulged in the refining and extraction of copper
from its alloys and ores.
India produces copper from the imported copper ore that accounts to around 3.52
lakh tons of production. This production level contributed to a mere 4% share in
the total copper production in the world. Indian market is divided into two parts
i.e., primary, and secondary. The primary segment comprises of the producers that
convert copper ore into refined copper. Three companies, namely Hindustan
Copper Ltd, Birla Copper and Sterlite Industries constitute this primary segment.
The secondary segment comprises the producers that manufacture value added
products made from copper like wires, foil etc.
The domestic consumption demand of copper is around 118000 tons in the
country which is bound to increase as the country readies to progressively step-up
production of electrical vehicles (EVs), a major copper use area will open. EVs will
require five times more copper than vehicles made with internal combustion
engines (ICE). A good amount of red metal will be used in making batteries for EVs,
cables and charging stations.
Then as India pursues the target of achieving non-fossil fuel-based energy
resources constituting around 40% of cumulative electric power installed capacity,
a major demand avenue for copper will open. In the Indian basket of sustainable
clean energy, solar power will have pride of place since this tropical country has
the potential to draw a vast amount of electricity from the blazing sun. The
National Institute of Solar Energy estimates India’s solar power potential at 748
gW. But the immediate target of the prime minister’s solar mission is to achieve a
solar capacity of 100 gW. The country seen as the fourth most attractive renewable
energy market in the world is placed fifth in global solar power pecking order. But
what does solar energy hold for copper use? A lot since creation of 1 mw of solar
cell capacity will need 6 tons of copper. Similarly, in renewable wind energy,

18
considerable amount of copper is used in the generator, cabling, and transformer
of a turbine.
India has always been an importer of copper ore to satisfy the domestic
consumption demand. The countries from where the ore is imported into India as
per March 22 are:
▪ China
▪ United States
▪ Saudi Arabia
▪ United Arab Emirates
▪ Iraq
Market Influencing Factor: -
• Price fluctuations of copper in London Metal Exchange
• Production level of copper in the world
• Growth prospects of the major copper consuming countries of the world of
the various sectors in the market.
Major Trading Centre’s of Copper: -
Copper is an important commodity that is traded in.
• London Metal Exchange (London)
• New York Mercantile Exchange (New York)
• Shanghai Futures Exchange (China)
These commodity exchanges direct the world market in the context of prices. In
India, copper is traded in the commodity exchanges namely Multi Commodity
Exchange of India Ltd, National Multi Commodity Exchange of India and National
Commodity and Derivatives Exchange

19
Company Profile
Hindustan Copper Limited (HCL)
Hindustan Copper Limited (HCL), a public sector enterprise of the Government of
India, undertaking the administrative control the ministry Of Mines, was
incorporated on 9th
November 1967. It has the distinction of being India’s only
vertically integrated copper producing company encompassing mining,
beneficiation, smelting, refining, and casting of refined copper metal. In the history
of Indian Copper, Hindustan Copper Limited (HCL) holds pride of place. With the
spirit of an undaunted pioneer HCL has contributed immensely to the industrial
growth of the country and its march towards self-reliance. Country’s Electrical
Sector was nourished by HCL through continuous a supply of its prime quality
Copper Cathodes, Wire Bars, and continuous Casts Rods. HCL also produces Gold,
Silver, Nickel sulphate, Selenium, Tellurium, and fertilizers as by products. With its
extensive warehouses and sales offices, HCL satisfies the demand of the customers
across the length and breadth of the country. HCL is the first Indian Copper
Producer to be accredited with ISO9002 certification for continuous Cast Rods
manufacturer at its Taloja plant and for manufacture of cathode at its Refineries
both at Indian Copper Complex, Ghatsila, Jharkhand and khetri Copper Complex,
Khetri, Rajasthan. It has the distinction of being the nation’s only vertically
integrated copper producing company as it manufactures copper right from the
stage of mining to beneficiation, smelting, refining, and casting of refined copper
metal into downstream saleable products. The Company markets copper cathodes,
copper wire bar, continuous cast copper rod and by-products, such as anode slime
(containing gold, silver, etc.) copper sulphate and sulphuric acid. More than 90% of
the sales revenue is from continuous cast copper rods and wires. In the concluded
financial year 2006-2007, as per provisional estimates, the company earned an all-
time highest net profit of Rs 331 crore (~USD 75 million) against a sales turnover of
Rs 1800 crore (~USD 420 million). HCL’s mines and plants are spread across four
operating units, one each in the States of Rajasthan, Madhya Pradesh, Jharkhand,
and Maharashtra as named below:

20
 Khetri Copper Complex (KCC) at Khetrinagar, Rajasthan
 Indian Copper Complex (ICC) at Ghatsila, Jharkhand
 Malanjkhand Copper Project (MCP) at Malanjkhand, Madhya Pradesh
 Taloja Copper Project (TCP) at Taloja, Maharashtra
 Gujarat Copper Project (GCP) at Bharuch, Gujarat

21
HCL/ICC GHATSILA: -
Indian Copper Corporation Ltd was established by a British company in 1930 at
Ghatsila consisting of a cluster of underground copper mines, concentrator plants
and smelter. On 25.09.72 the Govt. of India nationalized the company under
provisions of the Indian Copper Corporation (Acquisition of Undertaking Act) and
merged the same with HCL. Today it falls under the state of Jharkhand, under the
jurisdiction of East Singhbhum district.
Existing Infrastructure
➢ Established in 1930
➢ Capacity 16,500 tpa copper cathode
➢ By products Sulfuric acid, gold, silver, palladium, selenium, tellurium,
nickel sulphate
➢ Mines - Surda
➢ Reserve: Surda 19.30 million tons @1.17% cu

22
KCC KHETRINAGAR, RAJASTHAN: -
This complex was initially established by the National Mineral Development
Corporation (NMDC) as a copper mine which was transferred to HCL in 1967.
Subsequently smelting and refining facilities were added.
• Capacity - 31,000 tpa copper cathode (the smelter and acid plant at KCC are
under shutdown since late 2008 due to the slump in global commodity prices
witnessed in 2008 and old machinery. (Currently, the only concentrator for
production of copper concentrate is working in addition to associated mines.)
• By-products- sulphuric acid
• Mines - Khetri and Kolihan (producing 9,500 mt metal in concentrate / annum)
• Reserve:
i. Khetri 34.56 million tons @ 1.13% cu
ii. Kolihan 22.45 million tons @ 1.33% cu
Banwas 24.97 million tons @ 1.69% cu

23
MCP MALANJKHAND, MADHYA PARDESH: -
Malanjkhand Copper Project has the single largest copper deposit in India and
produces around 70% of HCL’s total copper in concentrate production. Established
in 1928, the unit comprises an open pit mine. The copper concentrator produced
at Malanjkhand is sent to Ghatsila unit ss(ICC) and Khetri (KCC) for processing into
refined copper.
• Capacity open cast mine with a capacity of 2 million tons with matching
concentrator
• Mines - Malanjkhand Open-pit mining
• Reserve 208.030 million tons @1.3% cu
• Features of the open pit mine
o length 2600 meter
o Width 700 meter
o Planned depth: 240 meter below average ground level.
The open pit mine has reached ultimate pit depth and further it's not economically
viable to exploit the mineral with open pit mining. Hence, the mine is being
converted to underground mines with enhanced capacity of 5 million tons with an
investment to the tune of 2000 crores.

24
TALOJA COPPER PROJECT (TCP) AT TALOJA,
MAHARASHTRA: -
The Taloja Copper project was set up in December 1989, based on technology
sourced from south wire, USA. The plant produces continuous cast copper rods
(CCR) and has a capacity of producing 60,000 TPA. The input that is cathodes ate
sourced from the company’s own unit at Khetri and Ghatsila as well as through
direct purchase of cathodes. The unit also undertakes tolling of cathodes. Name of
trade union operating in the establishment and whether they are registered or not
and they are recognized or not and their affiliation.
• Capacity 60,000 tpa continuous cast copper rod - Hindcop rods [6]
• Technology plant is based on the latest 'Southwire Technology.'
Product range 8 mm, 11 mm, 12.5 mm, 16 mm and 19 mm cc rod.

25
Gujarat Copper Project (GCP) at Bharuch, Gujarat
Hindustan Copper Limited (HCL) has acquired the plant and machinery including
lease hold land of Jhagadia Copper Ltd. (JCL) from ARCIL in June 2015 and renamed
it as Gujarat Copper Project. The factory is situated at Plot No. 747, Jhagadia
Industrial Estate, District - Bharuch, Gujarat. GCP plant is a secondary Copper
Smelter and Refinery complex. It can produce 50,000 tpa of copper cathodes
conforming to LME-A grade. The plant was setup in technical collaboration with
Outokumpu Technology AB (formerly Boliden Contech AB), Sweden. It was based on
modern and proven technology that is capable of processing a wide array of copper
bearing materials including e-scrap to produce LME-A grade copper cathode.
Jhagadia Copper Limited (JCL) was promoted by Khaitan Group of Shalimar Wires
Industries (SWIL) and planned to set up a secondary copper smelter in Bharuch in
1992. The project was commissioned in 2003 and the commercial production
commenced from May 15, 2006. However, operations of the company were
suspended from September 2009 due to lack of working capital.

26
PLANTS AND THEIR LOCATION
Plant Location Facilities
Indian Copper Complex
Ghatsila
Dist. Singhbhum,
Jharkhand
1. Copper Ore Mine
(Surda)
2. Concentrator
3. Smelter
4. Refinery
5. Sulphuric Acid Plant
6. Precious Metal Plant
Khetri Copper Complex
Khetrinagar
Dist. Jhunjhunu, Rajasthan
1.Copper Ore Mines
(Khetri & Kolihan)
2. Concentrator
3. Smelter
4. Refinery
5. Wire Bar Plant
6. Sulphuric Acid Plant
Taloja Copper Project
Taloja
Dist. Raigad, Maharashtra
1.Continuous Cast
Copper Rod Plant
Malanjkhand Copper
Project
Malanjkhand
Dist. Balaghat, Madhya
Pradesh
1. Copper Ore Mine –
(open cast)
2. Concentrator
Gujarat Copper Project
Jhagadia
Dist. Bharuch, Gujarat
1. Copper produced
out of secondary
copper.
2. Refining.

27
VISION AND MISSION OF HINDUSTAN COPPER LIMITED
Vision: -
To strive to be a leading metal mining company and maximize total shareholder
return by sustainably finding, developing, and mining copper ore and such other
geologically associated minerals.
Mission: -
➢ To achieve sustainable growth in business through optimum & efficient use
of existing resources and assets.
➢ To achieve rapid expansion of mining capacity through expansion of existing
mines, re-opening of closed mines and green field projects.
➢ Detailed exploration of existing mines and new mining leases to expand
mining capacity.
➢ To enhance the value of the Company by focusing on performance
improvement.
➢ To assimilate state-of-the art technology in exploration, mining and
beneficiation of ores for competitive advantage.
➢ To strive for continuous improvement in productivity and energy to bring at
par with the best internationally.
➢ To continue innovation through research & development.

28
SWOT ANALYSIS OF HINDUSTAN COPPER LIMITED
STRENGTH
1. Only Company mining copper
ore in India.
2. Fully developed infrastructure
facilities
3. Holding mining lease of more
than 80% of country’s copper
reserves
4. Vertically integrated
operations greater business
certainty
5. Skilled and well-trained
workforce
6. Established brand value.
7. Wide distribution network and
established customer base
WEAKNESS
1. Smaller size mine deposits except
Malanjkhand
2. Aged equipment & old technology
for value addition
3. Low process efficiency
4. High cost of logistics due to multi
location units
5. Low utilization of two plants, TCP &
GCP resulting in cross subsidization
6. Aged workforce
OPPURTUNITIES
1. Growing copper demand
within country
2. Ready market for copper
concentrate in India due to
large smelting/refining
capacity
3. Buoyancy in world copper
prices
4. Scope for expansion of mine
capacity
5. Opportunity to explore new
deposits
THREATS
1. Volatility in LME Copper price
affecting turnover/profitability.
2. Increasing cost of inputs
3. Attrition of skilled manpower
4. Regulatory risks in mining
increasing.
5. Risk in existing non-profitable
business
6. Non-availability of competent
underground Metal mining
contractor / Outsourcing
agency in India

29
CORPORATE SOCIAL RESPONSIBILITY
Policy Statement
For Hindustan Copper Limited (HCL), the Corporate Social Responsibility (CSR) is a
planned set of activities taking into consideration the Company’s capabilities,
expectations of the communities living in and around the areas of its operation as
well as where it has its presence, targeted to have a significant positive impact in
the long term.
The aim is to play a catalytic role in the sustainable socio-economic development in
the regions where the industry is located or where its interests lie, attempting to
create an enabling working environment for HCL as well as income generation
opportunities for the community keeping sight of sustained regional development.
Organization setup
The CSR projects in HCL are implemented under the guidance of the CSR Committee
which presently comprises three.
Directors out of which two are Independent Directors. The terms of reference of
the Committee are given below:
(i) Formulate and recommend to the Board, a Corporate Social Responsibility Policy
which shall indicate the activities to be undertaken by the Company in areas or
subject, specified in Schedule VII.
(ii) Recommend the amount of expenditure to be incurred on the activities referred
to in clause (i); and
(iii) Monitor the Corporate Social Responsibility Policy of the Company from time to
time.
A Nodal Officer for CSR at Corporate level coordinates Company’s CSR initiatives
and is assisted by a team of designated.
officers. A Nodal Officer at each of the three Units coordinates CSR initiatives at
Unit level.

30
Scope of activities
The CSR activities of HCL are as per the provisions of Schedule VII of the Companies
Act, 2013.
Geographical Span
(a) The CSR activities are undertaken essentially around areas of HCL Units, within
a radius of 20 Km. At least 75% of the amount earmarked for CSR activities shall be
spent in these areas.
(b) Of the remaining 25% of the CSR allocation after (a) above, around 15-20% may
be utilized in areas beyond 20 Km. of the Unit but within the State in which the
Units are located. Up to a maximum of 5% of the amount earmarked for CSR
activities may be utilized anywhere in India to be decided by the CMD.
Planning
The identification of CSR activities at Unit / Corporate level are done by any one or
combination of the following methods.
(i) In-house planned projects
(ii) Proposals from District Administration / Local Govt. body / Public
Representatives, etc.
(iii) Proposals/Requests from a registered & specialized body for providing financial
assistance for carrying out specific CSR initiative subject to the condition that it
fulfils the criteria as prescribed in the statute in this regard.
Implementation methodology
The CSR activities / projects are implemented using internal resources or through
collaborating with NGOs / specialized agencies / trusts / institutions / foundations
/ societies / Government bodies, etc., in accordance with the provision of ‘The
Companies Act, 2013’ and ‘Companies (Corporate Social Responsibility Policy)
Rules, 2014’. The expenditure incurred towards CSR has been certified by the CFO
of the Company.

31
SHAREHOLDING PATTERN OF HCL
Holder's Name No of Shares % Share Holding
No of Shares 967024020 100%
Promoters 639613373 66.14%
Foreign Institutions 3030760 0.31%
N-Banks Mutual Funds 33222572 3.44%
Others 15668962 1.62%
General Public 149723355 15.48%
Financial Institutions 125764998 13.01%

32
% Share Holding
Promoters
Foreign Institutions
NBanks Mutual Funds
Others
General Public
Financial Institutions

33
INDIAN COPPER COMPLEX (ICC) at Ghatsila, Jharkhand
Origin:
Indian Copper Corporation Ltd was established by a British company in 1930 at
Ghatsila consisting of a cluster of underground copper mines, concentrator plants
and smelter. On 25.09.1972 the Govt. of India nationalized the company under
provisions of the Indian Copper Corporation (Acquisition of Undertaking Act) ad
merged the same with HCL. Today it falls under the state of Jharkhand, under the
jurisdiction of east Singhbhum district.
Existing Infrastructure
➢ Established in 1930
➢ Capacity 16,500 tpa copper cathode
➢ By products Sulfuric acid, gold, silver, palladium, selenium, tellurium,
nickel sulphate
➢ Mines - Surda
➢ Reserve: Surda 19.30 million tons @1.17% cu
Additional mining reserves (old mines):
Rakha Mines 47.19 million tones @ 0.97% copper
Kendadih Mine 12.85 million tones @ 1.73% coppers
Chapri Mine 63.50 million tones @ 1.14% Cu

34
Introduction To Human Resources
Human Resources are the wealth of an organization which can help it in achieving
its goals. Human resource management is concerned with the human beings in an
organization. It reflects a new outlook which views organization’s manpower as its
resources and assets. Human resource is the total knowledge, abilities, skills,
talents and aptitudes of an organization’s workforce. The values, ethics, beliefs of
the individuals working in an organization also form a part of human resource. In
the present complex environment, no business or organization can exist and grow
without appropriate human resources. So human resource has become the focus
of attention of every progressive organization. Human resource management is
that process of management which develops and manages the human elements of
an enterprise. It is not only the management of skills but also the attitudes and
aspirations of people. When individuals come to a workplace, they come with not
only technical skills, knowledge, experience etc., but also with their personal
feelings, perceptions, desires, motives, attitudes, values etc. So HRM means
management of various aspects of human resources. An important element of
human resource management is the humane approach while managing people.
This approach helps a manager to view his people as an important resource. It is an
approach in which manpower resources are developed not only to help the
organization in achieving its goals but also to the self-satisfaction of the concerned
persons. On the one hand this approach focuses on human resource development,
and on the other hand it focuses on effective management of people on the other.
It is a process by which the people and organizations are bound together in such a
way that both are able to achieve their objectives.
According to Flippo, “Human resource management is the planning, organizing,
directing, and controlling of the procurement, development, compensation,
integration, maintenance and reproduction of human resources to the end that
individual, organizational and societal objectives are accomplished.” This definition
reveals that human resource management is that aspect of management which
deals with the planning, organizing, directing, and controlling the personnel
functions of an enterprise. The purpose of these functions is to assist in the
achievement of basic organizational, divisional, and societal goals.

35
Objectives Of Human Resource Management
1. To help the organization reach its goals: HR department, like other departments
in an organization, exists to achieve the goals of the organization first and if it does
not meet this purpose, HR department (or for that matter any other unit) will wither
and die.
2. To employ the skills and abilities of the workforce efficiently: The primary purpose
of HRM is to make people’s strengths productive and to benefit customers,
stockholders, and employees.
3. To provide the organization with well-trained and well-motivated employee: HRM
requires that employees be motivated to exert their maximum efforts, that their
performance be evaluated properly for results and that they be remunerated based
on their contributions to the organization
4. To increase to the fullest the employee’s job satisfaction and self-actualisation: It
tries to prompt and stimulate every employee to realize his potential. To this end
suitable programmes must be designed aimed at improving the quality of work life
(QWL).
5. To develop and maintain a quality of work life: It makes employment in the
organization a desirable, personal, and social, situation. Without improvement in
the quality of work life, it is difficult to improve organizational performance.
6. To communicate HR policies to all employees: It is the responsibility of HRM to
communicate in the fullest possible sense, tapping ideas, opinions and feelings of
customers, non-customers, regulators, and other external public as well as
understanding the views of internal human resources.
7. To be ethically and socially responsive to the needs of society: HRM must ensure
that organisations manage human resource in an ethical and socially responsible
manner through. ensuring compliance with legal and ethical standards.

36
Importance Of Human Resource Management
People have always been central to organizations, but their strategic importance is
growing in. today’s knowledge-based industries. An organisation’s success
increasingly depends on the knowledge, skills, and abilities (KSAs) of employees,
particularly as they help establish a set of core competencies that distinguish and
organization from its competitors. With appropriate HR policies and practices an
organization can hire, develop, and utilize best brains in the marketplace, realize its
professed goals and deliver results better than others. Human Resource
Management helps an organisation and its people to realize their respective goals
thus:
1. At the enterprise level:
> Good human resource practices can help in attracting and retaining the best
people in the organization. Planning alerts the company to the types of people it will
need in the short, medium, and long run.
> It helps in training people for challenging roles, developing right attitudes towards
the job. and the company promoting team spirit among employees and developing
loyalty and commitment through appropriate reward schemes.
2. At the individual level: Effective management of human resources helps
employees in the following areas:
> It promotes teamwork and team spirit among employees.
> It offers excellent growth opportunities to people who have the potential to rise.
> It allows people to work with diligence and commitment.
3. At the society level: Society is the major beneficiary of good human resource
practices.
> Employment opportunity is multiplied.
> Scarce talents are put to best use. Companies that pay and treat people well always
race. ahead of others and deliver excellent results.

37
4. At the national level: Effective use of human resources helps in exploitation of
natural,
physical and financial resources in a better way. People with right skills, proper
attitudes and
appropriate values help the nation to get ahead and compete with the best in the
world leading.
to better standard of living and better employment.

38
Employee Appraisal
What is Appraisal?
Appraisal is a process for evaluating and documenting how well an employee is
carrying out his or her job. It is part of a company’s performance management
system.
Performance appraisals are based on the employee’s progress against goals set once
a year with his or her manager. Usually, employees and managers will have check-
ins throughout the year; at the end of the year the manager assigns an overall rating.
The appraisal process gives employees feedback on their work, helps managers
make decisions about pay increases and bonuses, and identifies areas that need
improvement. Ongoing poor performance can lead to reprimands or termination.
Because performance appraisals affect an individual’s employment path, they can
be stressful for employees.

39
Process Of Appraisal
1. Establishing performance standards
The first step in the process of performance appraisal is the setting up of the
standards which will be used as the base to compare the actual performance of the
employees.
This step requires setting the criteria to judge the performance of the employees as
successful or unsuccessful and the degree of their contribution to the organizational
goals and objectives. The standards set should be clear, easily understandable and
in measurable terms.
In case the performance of the employee cannot be measured, great care should be
taken to describe the standards.
2. Communicating the standards
Once set, it is the responsibility of the management to communicate the standards
to all the employees of the organization. The employees should be informed, and
the standards should be clearly explained to the employees. This will help them to
understand their roles and to know what exactly is expected from them. The
standards should also be communicated to the appraisers or the evaluators and if
required, the standards can also be modified at this stage according to the relevant
feedback from the employees or the evaluators.
3. Measuring the actual performance
The most difficult part of the Performance appraisal process is measuring the actual
performance of the employees, that is the work done by the employees during the
specified period. It is a continuous process which involves monitoring the
performance throughout the year. This stage requires the careful selection of the

40
appropriate techniques of measurement, taking care that personal bias does not
affect the outcome of the process and aiding rather than interfering in an
employee’s work.
4. Comparing actual performance with desired performance
The actual performance is compared with the desired or the standard performance.
The comparison shows the deviations in the performance of the employees from
the standards set. The result can show the actual performance being more than the
desired performance or, the actual performance being less than the desired
performance depicting a negative deviation in the organizational performance. It
includes recalling, evaluating and analysis of data related to the employees’
performance.
5. Discussing results [Feedback]
The result of the appraisal is communicated and discussed with the employees on a
one-to-one basis. The focus of this discussion is on communication and listening.
The results, the problems and the possible solutions are discussed with the aim of
problem solving and reaching consensus. The feedback should be given with a
positive attitude as this can influence the employees’ future performance.
Performance appraisal feedback by managers should be in such way helpful as
correcting mistakes made by the employees and helping them to motivate for better
performance but not to demotivate. Performance feedback task should be handled
very carefully as it may lead to emotional outburst if it is not handed down properly.
Sometimes employees should be prepared before giving them feedback as it may
be received positively or negatively depending upon the nature and attitude of
employees.

41
Performance Appraisal Objectives
Performance appraisal can be conducted for various reasons. Human resources are
one of the most important resources that a company has. Therefore, every company
should understand where their employees stand in terms of performance and
productivity. Here are some more objectives of performance appraisals.
1. Provide Feedback:
Appraisals are an effective way to give feedback to employees Also, managers
communicate clearly regarding employee objectives and expectations. An employee
can learn about what he/she can do to improve their future performance.
2. Downsize or Right-Size:
The COVID pandemic is one of the many harsh realities that might force an
organization to downsize. In such a situation, appraisals are a way to make sure that
the most productive and talented individuals can be retained in a company. It is also
an effective way to know which employees are non-performers.
3. Promote The Right Person:
Appraisals give an organization objective and data-driven tools to make good
promotion decisions Also, it helps the most talented individuals retain the position
of the highest importance.
4. Set Goals & Measure Goals:
The annual appraisals are also an effective way to set future goals for the employees.
This ensures maximum productivity and superior performance.

42
5. Improve Work Performance:
An employee can only improve if he knows how to Objectives of a good appraisal
include highlighting the specific area of improvement for every employee.
6. Determine Compensation Changes:
An appraisal system works as a determining factor in increasing compensation, pay
raises, etc. Also, it ensures that people who work harder get paid better.
7. Encourage Coaching & Mentoring:
Managers are usually expected to coach their team members. Also, appraisals help
the managers to identify the areas where mentoring is required.
8. Employee Training and Development:
Individual skills are evaluated during an appraisal. Also, this helps employees to
identify if they need to acquire more skills and competencies to contribute to the
company. It also helps an organization to plan up-skilling training for their
employees.
9. Provide a Legal Defense for Personal Decisions:
A company can be held accountable for any decision that they take, even firing or
promoting an employee. Therefore, conducting a performance appraisal will help
the company prove a point if their decisions are ever challenged.

43
10. Encouraging Coaching & Mentoring:
Teaching and coaching are part of managing employees. It is part of being a good
manager. Performance appraisals will help them understand where an employee is
lacking and therefore where they can train and help employees to do better.
11. Improving Overall Organization’s Performance:
Finally, performance appraisals will help the company to learn more about the
employees and their requirements. It will help the employees to understand where
they are lacking and where they are doing well. This will help them learn and grow
quickly.

44
Characteristics of a Performance Appraisal System:
To have an effective appraisal system for your company, there are certain factors to
be kept in mind. However, what works for someone else may not be right for your
company. A good appraisal system satisfies these characteristics according to your
requirements.
1. Clear Objectives
Employee performance appraisals should have a clear goal. There must be a
predefined set of factors to evaluate employees based on their skill sets Which
obviously must be clear what the managers aim to get out of these appraisals.
2. Well Defined Performance Criteria
Employees must have a clear idea of what they are being evaluated. Good appraisal
systems have a set of procedures and standards for the performance of everyone.
For instance, a fresh graduate cannot be evaluated against someone with years of
experience.
3. Accuracy & Reliability in Results
An effective performance appraisal also helps a company to make clear, data-driven
& informed decisions. The data (or results) of any appraisal must be reliable and
valid, and they must be presented in an unambiguous manner. Accurate insights will
also help a company gain the trust of its employees.
4. Post Appraisal Interview
Post appraisal interviews are important because they help the employees to get
direct feedback from their superiors or managers. These interviews also help the

45
managers decide if any training or skill development programs are needed.
Employee grievances can also be addressed during this interview.
5. Timesaving
A good appraisal system is one that saves time as well as cost. Also, this helps a
company to get the maximum benefit. Instead of wasting all their time on
managerial tasks, HR personnel could focus on other important jobs.
6. Focusing on What Matters
A good appraisal system evaluates employees on various factors. However, an
employee’s work performance and competency are of utmost importance.
Subjective factors, such as personal behavior, attitude & personality come
secondary to an employee’s skill set.
7. Match Your Goals
Appraisal systems should be designed according to the functioning of your company.
For instance, if you are using a 360-degree feedback approach, feedback should be
taken from only those who have worked closely with the employee overtime. It’s
good to practice being innovative with appraisals so they match your company’s
working policy.

46
Advantages & Disadvantages of Performance Appraisal
It is often wondered why HR departments conduct performance appraisals. The
performance appraisal process is a complicated one. It needs to be done in a way
that truly brings changes to the way the company functions. While it gives the
managers a clear idea about their employees it is a tedious task that sometimes
doesn’t bring any results or changes. Therefore, the question comes up as to
whether you should conduct a performance appraisal in your company or not.
Advantages of Performance Appraisal are:
1. Find The True Potential of The Employee
Performance appraisal helps the HR department and the company learn about the
strengths and weaknesses of an employee. This process can, therefore, be used to
truly learn about the employee’s interests and potential. This analysis also helps the
HR department to choose the right employees for a job. The HR department can
even suggest the employee switch to a department that fits them better.
2. Promotes Employee Development
The quickest way to improve an employee’s performance is by providing them with
specific feedback. The performance appraisal process includes giving employees
feedback about their strengths as well as weaknesses. The employees can use this
information to develop themselves further.
3. Acts as a Motivator
Employees crave feedback. When they receive that it can act as a motivator for
them. Knowing their weaknesses can help employees give their best and improve

47
upon the areas they’ve missed out on. After all this can work as a boost to the entire
office or team.
4. Focused Employee Training & Development
Planning and development programs are important for any organization. The
performance appraisal can show exactly where most of the employee’s lack in terms
of training as well as in development. The HR department can then create programs
according to those gaps. This will be more beneficial for the employees and will be
a successful program of training and development.
5. Improves Employee, as well as Management Relationship
In general, performance appraisal gives employees an opportunity to truly share and
discuss the problems that they are facing in their role. This builds a healthy
environment for both the manager and the employee.
6. Promotion & Transfers
It is difficult to make the correct decision about who to promote and who to transfer
without any data. The performance appraisal can be useful for learning which talents
should be rewarded and which need to be pushed to do better. It ensures that the
decision is made based on facts and figures rather than personal biases.
7. Mentoring From Superiors
Managers are a crucial part of any appraisal system. They are the ones handling the
administrative as well as feedback work in an appraisal. Good managers are good
mentors, meaning that they can guide their employees to reach their maximum
potential. Managers must not only focus on the weaknesses, but they must highlight
employees’ strengths too.

48
Disadvantages of The Performance Appraisal are:
1. Time Consuming Process
First and foremost, performance appraisal is a time-consuming process. It requires
resources, time and costs the company money. It requires the HR department to
create the forms, ask everyone to fill them in as well as analyze the results for
specific feedback while going through the correct procedures.
Sometimes, the organization must hire professional experts from outside the
company to conduct the evaluation process. The evaluation processes must be
designed and implemented clearly &, because of this, the performance appraisal
process becomes expensive for the company.
2. Personal Bias or Incorrect Ratings
It is possible that managers, to not look bad, give a decent rating to all employees.
This can be the case with managers that try to avoid conflicts or arguments.
Furthermore, personal bias can play a huge role in the ratings. If a manager has a
liking for an employee, they will rate them better and vice versa. This can be the
case even if they are good employees. Generally, employers simply give average
feedback to employees. This means the over performers and underperformers both
aren’t rated correctly.
3. Horn & Halo Effect
The horn and halo affect human tendency to see only the good or the bad in a
person. For example, an employer might just see that the employee is never on time
and will rate the employee low on all the brackets because of that. However, he
might not notice that the employee works for long hours every day and completes
the work on time. This can affect an employee’s overall ratings.

49
4. Spillover Effect
This refers to human behavior. It means that while judging the employee for
performance appraisal it is possible that the manager simply marks an employee
high because of their past performances instead of their current ones. They rank the
employee by considering the overall overview that they have of the employee.
5. Attitude of Evaluator
The mindset and the mood of the manager is also a cause of concern. If the manager
has high expectations might mark their employees lower. Thereby, making the team
look lower than others on average. Also, this makes the process of evaluation and
improving the performance in the organization a difficult task to achieve.

50
HCL Appraisal Form
STAFF PERFORMANCE APPRAISAL FORM
NAME: ___________________________________ EMPLOYEE ID: ___________________
DEPARTMENT____________________________ POSITION________________________
REVIEWER NAME: _________________________
This form must be returned to the H.R Department for further evaluation of the ratings.
Beginner
level
Intermediate
level
Advance
level
JOB KNOWLEDGE
QUALITY OF WORK
PUNCTUAL
DEPENDABILITY
ATTENDENCE
COMMITMENT TO SAFETY
OVERALL APPRAISAL RAITING
SUPERVISOR COMMENT: __________________________________________________________

51
Performance Appraisal Forms
Measuring your employees’ performance is an essential tool to evaluate success and
encourage improvement. One tool employers use is an appraisal form, which they
may refer to during an employee evaluation or performance review. Read on to
learn what you should include in your employee appraisal forms and how to
implement them with your team.
What is an appraisal form?
An appraisal form is a document that managers and human resources staff use to
evaluate the performance of employees. The form often includes ratings and room
for comments on performance. On an appraisal form, managers keep track of
employees’ achievements and contributions during a specific period. They also
indicate the employees’ areas of strength and weakness.
“Managers often use the performance appraisal form to guide them through an
employee’s performance review by highlighting specific items to discuss. When
going through the appraisal form, both the employee and manager can work
together to create goals for the employee.”
How to create an appraisal form
A well-made performance appraisal form helps both you and the employee
understand what the employee is doing well and how they can improve. Include
relevant appraisal factors that break down the evaluation by different skills and
qualities. Customize the form to fit your company’s goals and the metrics you want
to track for your employees.
Here’s what to include when creating an appraisal form:

52
1. A rating rubric
Think of the key objectives of an employee’s role and separate them into different
categories. Then, rate how well they’re meeting each objective. A common rating
system is the 5-point rating scale. Detail what each rating means to help managers
in different departments rate employees consistently. Here’s an example of what
each number signifies in this type of rating scale:
1 = Poor (consistently fails to meet expectations)
2 = Fair (frequently fails to meet expectations)
3 = Good (usually meets expectations)
4 = Very Good (frequently surpasses expectations)
2. The employee’s achievements
Most employers fill out a new appraisal form for each performance review. Highlight
the employee’s greatest achievements during the review period. Include what
projects the employee successfully completed or what they did well.
3. What the employee can improve on
Think about what areas the employee could improve on. For instance, an employee
might not communicate well with the team, or they might show up late frequently,
hurting their productivity.
4. Improvements since the last review
If the employee has already had a performance review, note the things they have or
haven’t improved since your last meeting. Detail what actions they took to meet
their previous goals. By reflecting on what worked for them, they can use this insight
for their new goals.

53
5. The employee’s professional goals
Help the employee create new professional goals for this next review period. Choose
SMART (Specific, Measurable, Attainable, Relevant, Time-bound) goals so the
employee is more likely to accomplish this goal in a set timeframe.
6. Comments from the employee
The employee comments section lets employees explain themselves in writing. Here
they can include why their work isn’t meeting company standards, or they could
express what they enjoy about their position.
Why are appraisal forms important?
They’re important because they help the employer create an objective evaluation
of an employee. When team members receive regular feedback, they can focus their
attention on areas they need to improve and feel motivated by learning their
strengths.

54
Types Of Performance Appraisal Method:
1. Management by Objectives (MBO)
Management by objectives (MBO) is the appraisal method where managers and
employees together identify, plan, organize, and communicate objectives to focus
on during a specific appraisal period. After setting clear goals, managers and
subordinates periodically discuss the progress made to control and debate on the
feasibility of achieving those set objectives.
This performance appraisal method is used to match the overarching organizational
goals with objectives of employees effectively while validating objectives using the
SMART method to see if the set objective is specific, measurable, achievable,
realistic, and time sensitive.
At the end of the review period (quarterly, half-yearly, or annual), employees are
judged by their results. Success is rewarded with promotion and a salary hike
whereas failure is dealt with transfer or further training. This process usually lays
more stress on tangible goals and intangible aspects like interpersonal skills,
commitment, etc. are often brushed under the rug.
Incorporating MBO into your performance management process
To ensure success, the MBO process needs to be embedded in the organizational-
wide goal setting and appraisal process. By incorporating MBO into the performance
management process, businesses can improve employee’s commitment, amplify
chances for goal accomplishment, and enable employees to think futuristically.
Ideal for:
Measuring the quantitative and qualitative output of senior management like
managers, directors, and executive (business of any size)

55
Common reason for failure:
Incomplete MBO program, inadequate corporate objectives, lack of top
management involvement
Steps to implement a successful MBO program:
• Every manager must have 5-10 goals expressed in specific, measurable terms.
• Managers can propose their goals in writing, which will be finalized after
review.
• Each goal needs to include a description and a clear plan (list of tasks) to
accomplish it.
Determine how progress will be measured and how frequently (minimum
quarterly)
• List corrective actions that will be taken if progress is not in accordance with
plans.
• Ensure that goals at each level are related to the organizational objectives and
levels above/below.
2. 360-Degree Feedback
360-degree feedback is a multidimensional performance appraisal method that
evaluates an employee using feedback collected from the employee’s circle of
influence namely managers, peers, customers, and direct reports. This method will
not only eliminate bias in performance reviews but also offer a clear understanding
of an individual’s competence.
This appraisal method has five integral components like:
1. Self-appraisals

56
Self-appraisals offer employees a chance to look back at their performance and
understand their strengths and weaknesses. However, if self-appraisals are
performed without structured forms or formal procedures, it can become lenient,
fickle, and biased.
2. Managerial review
Performance reviews done by managers are a part of the traditional and basic form
of appraisals. These reviews must include individual employee ratings awarded by
supervisors as well as the evaluation of a team or program done by senior managers.
3. Peer reviews
As hierarchies move out of the organizational picture, coworkers get a unique
perspective on the employee’s performance making them the most relevant
evaluator. These reviews help determine an employee’s ability to work well with the
team, take up initiatives, and be a reliable contributor. However, friendship or
animosity between peers may end up distorting the final evaluation results.
4. Subordinates Appraising manager (SAM)
This upward appraisal component of the 360-degree feedback is a delicate and
significant step. Reportees tend to have the most unique perspective from a
managerial point of view. However, reluctance or fear of retribution can skew
appraisal results.
5. Customer or client reviews
The client component of this phase can include either internal customers such as
users of product within the organization or external customers who are not a part
of the company but interact with this specific employee on a regular basis.

57
Customer reviews can evaluate the output of an employee better; however, these
external users often do not see the impact of processes or policies on an employee’s
output.
Advantages of using 360-degree feedback:
• Increase the individual’s awareness of how they perform and the impact it has
on other stakeholders.
• Serve as a key to initiate coaching, counselling, and career development
activities.
• Encourage employees to invest in self-development and embrace change
management.
• Integrate performance feedback with work culture and promote
engagement.
Ideal for:
Private sector organizations than public sector organizations as peer reviews at
public sector organizations are more lenient.
Common reason for failure:
Leniency in review, cultural differences, competitiveness, ineffective planning, and
misguided feedback
3. Assessment Centre Method
The concept of assessment centre was introduced way back in 1930 by the German
Army but it has been polished and tailored to fit today’s environment. The assessment
centre method enables employees to get a clear picture of how others observe them and
the impact it has on their performance. The main advantage of this method is that it will

58
not only assess the existing performance of an individual but also predict future job
performance. Duringtheassessment,employeesareaskedtotakepartinsocial-simulation
exercises like in-basket exercises, informal discussions, fact-finding exercises, decision-
making problems, role-play, and other exercises that ensure success in a role. The major
drawback of this approach is that it is a time and cost intensive process that is difficult to
manage.
Advantages of the assessment centre method:
• Enhance a participant’s knowledge, boost his/her thought process, and improve
employee efficiency.
• Can be tailored to fitdifferent roles, competencies, and business needs.
• Offer an insight of the employee’s personality (ethics, tolerance, problem-solving
skill, introversion/extroversion, adaptability, etc.)
Ideal for:
Manufacturing organizations, service-based companies, educational institutions, and
consulting firms to identify future organizational leaders and managers.
Guidelines to implementassessment centre practice:
1. Use job analysis to determine the components of effective performance.
2. Identify performance metrics thatcan be measured using this assessment center.
3. Classify meaningful and relevant candidate behavior in the assessment process.
4. Find assessment techniques thatcan ideally elicitideal behavioral information.
5. Provide thorough training to assessors and reviewers.
6. Maintain a system of performance records for each candidate.
7. Review records and reward employee or provide training accordingly.

59
4. Behaviorally Anchored Rating Scale (BARS)
Behaviourallyanchored rating scales (BARS) bringoutboth the qualitativeand quantitative
benefits in a performance appraisal process. BARS compares employee performance with
specific behavioural examples that are anchored to ratings.
Each performance level on a BAR scale is anchored by multiple BARS statements which
describecommonbehavioursthatanemployeeroutinelyexhibits.Thesestatementsactas
a yardstick to measure an individual’s performance against predetermined standards that
are applicable to their role and job level.
Advantages of using BARS:
• Enjoy clear standards, improved feedback, accurate performance analysis, and
consistentevaluation.
• Eliminate construct-irrelevant variance in performance appraisal ratings by
emphasis more on specific, concrete, and observable behaviors.
• Decrease any chance for bias and ensure fairness throughout the appraisal process.
Ideal for:
BusinessesofallsizesandindustriescanuseBARStoassesstheperformanceoftheirentire
workforce from the entry level agent to c-suite executives.
Common drawbacks of BARS:
1. High chance for subjectivity in evaluations
2. Hard to make compensation and promotion decisions.
3. Time-consuming to create and implement.
4. Demands more from managers and senior executives.

60
5. Psychological Appraisals
Psychological appraisals come in handy to determine the hidden potential of employees.
Thismethodfocusesonanalysinganemployee’sfutureperformanceratherthantheirpast
work. These appraisals are used to analyse seven major components of an employee’s
performance such as interpersonal skills, cognitive abilities, intellectual traits, leadership
skills,personality traits, emotionalquotient, andother relatedskills. Qualifiedpsychologists
conduct a variety of tests (in-depth interviews, psychological tests, discussions, and more)
to assess an employee effectively. However, it is a rather slow and complex process, and
the quality of results is highly dependent on the psychologist who administers the
procedure. Specific scenarios are considered while performing psychological appraisal. For
instance, the way in which an employee deals with an aggressive customer can be used to
appraise his/her persuasion skills, behavioural response, emotional response, and more.
Advantages of psychological appraisals:
1. Extract measurable, objective data about not just an employee’s performance but
also potential.
2. Canbedeployedeasilywhencomparedwithotherperformanceappraisalmethods.
3. Offer introverted or shy employees a platform to shine and prove their potential.
Ideal for:
Large enterprises can use psychological appraisals for an array of reasons including
developmentof leadership pipeline, team building, conflict resolutions, and more.
Common reasons for failure:
Absence of proper training, lack of trained professionals to administer reviews, and
nervousness or anxiety of candidates can skew results.

61
6. Human-Resource (Cost) Accounting Method
Human resource (cost) accounting method analyses an employee’s performance through
the monetary benefits he/she yields to the company. It is obtained by comparing the cost
of retaining an employee (cost to company) and the monetary benefits (contributions) an
organization has ascertained from that specific employee. When an employee’s
performanceisevaluatedbasedoncostaccountingmethods,factorslikeunit-wiseaverage
servicevalue,quality,overheadcost,interpersonalrelationships,and moreareconsidered.
Its high dependency on the cost and benefit analysis and the memory power of the
reviewer is the drawback of human resources accounting method.
Advantages of the human cost accounting method:
• Effectively measure the cost and value thatan employee brings to the organization.
• Help identify the financial implications that an employee’s performance has on the
organization’s bottom line.
Ideal for:
Start-upsandsmallbusinesseswheretheperformanceofoneemployeecanmakeorbreak
the organization’s success.

62
DATA ANALYSIS
Q.1- How long you have been working in the organization?
• 0-5 years
• 6-10 years
• 11-15 years
• More than 15 years
Tenure in the
organization
Option
Responses % of Responses
0-5 years 9 19%
6-10 years 10 21%
11-15 years 8 17%
More than 15
years
20 43%
INTERPRETATION
The analysis shows that the organization does not face much employment
turnover as most of the employees are happy with the incentives and work
culture provided by the organization and do not prefer to switch jobs.

63
Q.2- Does the organization clearly define the position objective, requirements,
and candidate specification in the requirement process?
• Yes
• No
Clarity regarding
job specification
and job
description
Option
Yes 44 94%
No 3 6%
INTERPRETATION
According to the data, most of the employees (i.e.,94%) agreed that the
organization clearly defines the job specification and job description like position,
objective, requirements, etc. in the requirement process whereas 6% does not
agree.

64
Q.3-Is the organization doing timeliness recruitment and selection process?
• Yes
• No
Conducting
recruitment
and selection in
time Option
Yes 32 68%
No 15 32%
INTERPRETATION
As per my survey, most of the people (i.e.,68%) agreed that organization is doing
timeliness recruitment and selection whereas other 32% of employee disagree with
this. So, we can say that recruitment and selection is done on time.

65
Q.4-How often is the appraisal process is done in an accounting period
• Once a year
• Twice a year
• Thrice a year
• More than three times
No of times
appraisal is held
in a year
Once 0 0%
Twice 30 81.1%
Thrice 7 18.9%
More than three 0 0%
INTERPRETATION
As per my survey, most of the people (i.e.,81.1%) agreed that appraisal is done
twice a year whereas 18.9% people agreed that it is done thrice a year. So, we can
say according to majority the appraisal is held twice a year.

66
Q.5- How is the appraisal details taken?
• Manually
• Digitally
Mode of
appraisal
recording
Manually 44 94%
Digitally 3 6%
INTERPRETATION
As per my survey, most employees (94%) say the data is recorded manually
whereas the remaining (3%) says it is done digitally.

67
Q.6-What appraisal process does the company use?
• Survey method
• Any other method
Mode of
appraisal
process
Survey Method 50 100%
Any other
method
0 0%
INTERPRETATION
As per my survey, all the employees agreed that the mode used is survey method.

68
Q.7- How would you rate the HR Department performance in appraisal process
• Excellent
• Adequate
• Poor
Performance of
Human Resource
Department in
appraisal process
Excellent 32 68%
Adequate 14 30%
Poor 1 2%
INTERPRETATION
As per the survey, 68% of employees rated the HR Department performance in
performance appraisal as excellent whereas 30% of employees rated it as
adequate and 2% of employees rated H.R Department performance in as poor.

69
FINDINGS AND SUGGESTIONS
Performance Appraisals is not only an evaluation process of a person’s performance
with reward / punishments as an outcome of it. Rather, its intent is to align and
improve the performance of an individual to meet the overall organizational goal.
The company lacks flexibility in its appraisal process as it only relies on the survey
method rather than the new ways of appraisal currently in use all over the world.
Due to lack of upgrading the company lacks the right amount of motivation among
the employees which drives the workforce to give their best performance with the
motive to grow in salary or in position.
The company lacks even in the new digital means of recording data it still uses the
old method of hardcopies and files which also pose the threat of the older records
to be corrupt over time and are prone to physical damages.

70
Conclusion
Performance Appraisals is not only an evaluation process of a person’s performance
with reward / punishments as an outcome of it. Rather, its intent is to align and
improve the performance of an individual to meet the overall organizational goal.
A good Performance Appraisal should
1. Serve as holistic measurement system -impartial & impersonal and can be used across
the organization
2. It should provide a way to create an effective individual development plan, completely
tailored to individual needs and aspirations
The supervisor and employee should couple together to have a free flow of discussion on
strengths, weaknesses, career aspiration and competency gaps, this reciprocation and
involvement is important for performance management to yield any benefits. Different
forms of appraisal systems can be used to conductthe performance appraisal. 360 Degree
Feedback enhances the effectiveness of the performance appraisals by providing an all-
round view of the employee’s accomplishments. The difference between the Standard
Performance and Actual performance gives rise to training needs. Training and
Development is about imparting knowledge to improve the skills and abilities of the
employees to meet the current or future competency needs. In all, the performance
appraisalandtheperformancemanagementsystemshouldhelpanemployeeinachieving
theresultsefficientlyandeffectivelytherebyalsofulfillingtheorganizationalgoals.Constant
learning and improving based on the performance appraisal allow more effective decision
making followed by leading and influencing larger teams to achieve their goal.

71
APPENDIX
SAMPLE QUESTIONNAIRE:
1. Is performance appraisal necessary?
a. Yes
B. no
c. Maybe
2. Do you receive any incrementin your salary after performance appraisal?
a. Yes
b. No
3. Do you think the performance of an employee improves performance appraisal?
a. Yes
b. NO
c. Maybe

72
4. Is the top-level managementpartial with the process of performance appraisal?
a. Agree
b. Disagree
c. Strongly agrees.
d. Strongly disagrees.
5. Do you think performance appraisal helps change behavior/attitude of an employee?
a. Yes
b. No
c. Maybe
6. Does your organization encourage coaching/mentoring sessions for employees with
poor performance?
a. Yes
b. No

73
7. Are you satisfied with the existing performance managementprocess?
a. Yes
b. No
8.Couldyousuggestmanagementanywaystoimproveyouranywaystotheperformance
managementways in your company?
a. <short answer>
9. Do you think your performance has improved since your last performance appraisal?
a. Yes
b. No
c. Maybe
10. Should performance appraisal be done privately?
a. Yes
b. No

74
11.Doyoubelievethatwhileevaluatingaperformance,allofthefactorsthataidorimpede
performance are taken into account?
a. Yes
b. no
12. Do you believe that a Performance Management System can assist you in setting and
achieving relevantobjectives?
a. Yes
b. no
c. Maybe
13. Do you think your leadership and interpersonal skills are developed during the
Performance ManagementSystem?
a. Yes
b. No

75
BIBLIOGRAPHY
The following data have been collected by the sources.
1. HCL Yearly report
2. https://www.simplilearn.com/what-is-performance-appraisal-methods-process-
article#:~:text=A%20performance%20appraisal%20is%20a,organization%2C%20a
nd%20future%20development%20potential.
3. https://www.investopedia.com/what-is-a-performance-appraisal-4586834
4. https://www.managementstudyguide.com/performance-appraisal.htm
5. https://hbr.org/2016/10/the-performance-management-revolution

A project on employee appraisal process in Hindustan Copper Limited

Recommended

Recommended

More Related Content

Similar to A project on employee appraisal process in Hindustan Copper Limited

Similar to A project on employee appraisal process in Hindustan Copper Limited (20)

Recently uploaded

Recently uploaded (20)

A project on employee appraisal process in Hindustan Copper Limited