[PROJECT TITLE]

A Summer Internship Project Report submitted for the partial fulfillment of the Master of
Business Administration Degree in MBA (Specialization)

BY
[Name of the Student1]

(ROLL NO: , REGISTRATION NO: )

Under the Guidance of:

. …………..
[EXTERNAL (COMPANY) PROJECT GUIDE’S NAME]

Prof. …………..
[INTERNAL (IEM) PROJECT GUIDE’S NAME]

Department of ………………..

For the Academic Year …..-…..

Institute of Engineering & Management

Y-12, Salt Lake, Sector-V, Kolkata-700091

Affiliated To:
 Maulana Abul Kalam Azad University of Technology

BF-142, Salt Lake, Sector I, Kolkata-700064

CERTIFICATE
TO WHOM IT MAY CONCERN
This is to certify that the project report entitled “[PROJECT TITLE]”, submitted by

[Name of the student ]

(Registration No. ----------------------of ------------------ Roll no.-----------),

of INSTITUTE OF ENGINEERING &MANAGEMENT, in partial fulfilment of requirements

for the award of the degree of Master of Business Administration in [SPECIALIZATION], is
a bonafide work carried out under the supervision and guidance of Prof. Dr.…….
[DEPARTMENTAL PROJECT GUIDE] during the academic session of 2017-2019.The content of
this report has not been submitted to any other University or Institute for the award of any other
degree.

It is further certified that work is entirely original and its performance has been found to be quite
satisfactory.

_______________________________ ____________________________

Prof .Dr.………
[Name of your Internal Project Guide] Prof. Dr. Sujit Dutta
Project Guide H.O.D
Dept. of …….. Dept. Of Management
Institute of Engineering & Management Institute of Engineering &Management
 Prof. Dr. Indraneel Mukhopadhyay
Principal - Management
Institute of Engineering & Management
Sector-V, Salt Lake Electronics Complex, Kolkata-700091

COMPANY CERTIFICATE TO BE ENCLOSED

 ACKNOWLEDGEMENT

We should like to take this opportunity to extend our gratitude to the following revered persons
without whose immense support, completion of this project wouldn’t have been possible.

We are sincerely grateful to our external Guide and Internal Guide [Name of your internal
project Guide] of the (Department Name), IEM Kolkata, for his/her constant support ,
significant insights and for generating in us a profound interest for this subject that kept us
motivated during the entire duration of this project.

We would also like to express our sincere gratitude to Prof. Dr. Satyajit Chakrabarti (Director,
IEM), Prof. Dr. Indraneel Mukhopadhyay (Principal-Management, IEM) and Prof. Dr. Sujit
Dutta, HOD of (Management) and other faculties of Institute of Engineering & Management, for
their assistance and encouragement.

Last but not the least, we would like to extend our warm regards to our families and peers who
have kept supporting us and always had faith in our work.

Name of the Student

Reg.No:
Dept. of Management
Institute of Engineering & Management,
IMPORTANCE OF PERFORMANCE APPRAISAL

• Every employee’s individual performance influences how all the team or even the firm

(especially if it is small) is doing.

• Self-development is the most important benefit for the employee. Performance appraisal

allows you to provide positive feedback as well as identifying areas for improvement. An

employee can discuss and even create a developmental (training) plan with the manager so he

can improve his skills.

• It motivates employees if supported by a good merit-based compensation system. Best

performers get better pay and benefits packages. Similarly, those employees that lag behind get

penalized.

• Provides a structured process for an employee to approach the management for discussions,

identify problems, clarify expectations and plan for the future. It lets both manager and employee

set up long- and short-term goals.

1.2 OBJECTIVES OF THE PROJECT

1. Performance Feedback

 Proper performance feedback can improve the employee's future performance. It also gives him
satisfaction and motivation.

2. Employee Training and Development Decisions

 Performance appraisal helps a manager to find out whether he needs additional training for
improving his current job performance. Similarly, if the performance appraisal results show
that he can perform well in a higher position, then he is given training for the higher level
position.
3. Validation of Selection Process

 A proper performance appraisal finds out the validity of the various selection tools and so the
company can follow suitable steps for selecting employees in future.

4. Promotions

 Performance appraisal is a way of finding out which employee should be given a promotion.
Past appraisals, together with other background data, will enable management to select
proper persons for promotion.

5. Transfers

 Such identification of employees who can be transferred is possible through the performance
appraisal.

6. Layoff Decisions

 The weakest performers are the first to be laid off. If there is no performance appraisal, then
there are chances that the best men in the department may be laid off.

7. Compensation Decisions

 This is truer in the case of managerial jobs and also in the case of employees in non-unionized
organisations. The better performances are rewarded with merit pay.

8. Human Resource Planning (HRP)

 Without the knowledge of who is capable of being promoted, demoted, transferred, laid off or
terminated, management cannot make employment plans for the future.

9. Career Development

 Performance appraisal also enables managers to coach and counsel employees in their career
development.
1.3 JUSTIFICATION FOR CHOOSING THE PROJECT

(1) Track exceptional performance, then compensate

 Tracking exceptional performance can only happen through an appraisal process which will
include regular one-on-one discussions between the employee and his supervisor to sort out the
key contributors from the rest and compensate all accordingly.

(2) Keep a tab on strengths and weaknesses

 Having a formal personal appraisal system which regularly tracks an individual’s strengths and
weakness will be crucial in setting up strong teams with members formally assessed for their
contributing and noncontributing areas.

(3) Open up and improve communication

 An employee performance appraisal system works well as a channel for employee-manager

communication. Managers should use the assessment as an opportunity to describe the criteria
on which the performance is judged, with the aim of helping the employee better understand
how to do his job.

(4) Human resource program working

 A human resource program is a valuable way to gain the necessary skills and knowledge for
managing “human capital” which is the key competitive advantage for organizations and
companies.

(5) Set new goals

 The appraisal is also an opportunity for managers to realign business objectives if market
situations are changing and set goals realistically. Formal evaluations are also a good time to
step away from the hustle and bustle of everyday work and reflect upon the overarching
direction your team is heading towards.

1.4 RESEARCH METHODOLOGY

Research methodology is the specific procedures or techniques used to identify, select, process,

and analyze information about a topic. In a research paper, the methodology section allows the

reader to critically evaluate a study’s overall validity and reliability. The methodology section

answers two main questions: How was the data collected or generated? How was it analyzed?

1.5 LITERATURE REVIEW

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 which are as follows:

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.

1.6 ARRANGEMENT OF CHAPTERS

2.INDUSTRY OVERVIEW

DVC emerged as a culmination of attempts made over a whole century to control the wild and

erratic Damodar River. The valley has been ravaged frequently by floods at varying intensities.

Serious floods occurred in 1730, 1823, 1848, 1856, 1882, 1898, 1901, 1916, 1923, 1935 & 1943.

The river spans over an area of 25,235 sq. km covering the states of Bihar (now Jharkhand) &

West Bengal. The catastrophe caused by the 1943 flood, led to serious public indignation against

the Government. As a result, the Government of Bengal appointed a board of Enquiry titled

"Damodar Flood Enquiry Committee"with the Maharaja of Burdwan and the noted physicist
Dr.

Meghnad Saha as members for suggesting remedial measures.

The Damodar Flood Enquiry Committee suggested the creation of an authority similar to the

Tennessee Valley Authority in the USA and recommended the construction of dams and storage

reservoirs at the sites with a total capacity of 1.5 million acre-ft. (1.850 million cu. M) and

highlighted the possibilities of multipurpose development in the valley area. The Government of

India then commissioned the ‘Central Technical Power Board’ to study the proposal and

appointed Mr. W L Voorduin, a senior engineer of the TVA to study the problem at the Damodar

and to make his recommendation for comprehensive development of the valley. Accordingly, in
August 1944 Mr. W L Voorduin submitted his ‘Preliminary Memorandum on the unified

Development of the Damodar River.’

Mr. Voorduin's "Preliminary Memorandum" suggested a multipurpose development

plan

designed for achieving flood control, irrigation, power generation and navigation in the Damodar

Valley. Four consultants appointed by the Government of India examined it. They also approved

the main technical features of Voorduin's scheme and recommended early initiation of

construction beginning with Tilaiya to be followed by Maithon. By April 1947, full agreement

was practically reached between the three Governments of Central, West Bengal and Bihar on

the implementation of the scheme and in March 1948, the Damodar Valley Corporation Act (Act

No. XIV of 1948) was passed by the Central Legislature, requiring the three Governments, The

Central Government and the State Governments of West Bengal and Bihar to participate jointly

for the purpose of building the Damodar Valley Corporation. The Corporation came into

existence on 7 July 1948 as the first multipurpose river valley project of independent India.

Command area: 24,235 km 2 spread across the Damodar basin. Jharkhand: 2 districts fully

(Dhanbad and Bokaro) and parts of 8 districts (Hazaribagh, Koderma, Chatra, Palamau,

Ranchi,Revanth Loherdaga, Giridih, and Dumka) West Bengal: 6 districts (Purba Bardhhaman,

Paschim Bardhhaman, Hoogly, Howrah, Bankura, Purulia)

The Damodar Valley Corporation has been generating and transmitting power since 1953.

2. LITERATURE REVIEW

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

Why Companies Give Performance Appraisals ?

Because companies have a limited pool of funds from which to award raises and bonuses,

performance appraisals help determine how to allocate those funds. They provide a way for

companies to determine which employees have contributed the most to the company’s growth so

companies can reward their top-performing employees accordingly.

Performance appraisals also help employees and their managers create a plan for employee

development through additional training and increased responsibilities, as well as to identify

shortcomings the employee could work to resolve.

Ideally, the performance appraisal is not the only time during the year that managers and

employees communicate about the employee’s contributions. More frequent conversations help

keep everyone on the same page, develop stronger relationships between employees and

managers, and make annual reviews less stressful.

Performance Appraisal Types

Most performance appraisals are top-down, meaning supervisors evaluate their staff with no

input from the subject. But there are other types:

Self assessment: Individuals rate their job performance and behavior.

Peer assessment: An individual's work group rates his performance.

360-degree feedback assessment: Includes input from an individual, her supervisor and

her peers.

Negotiated appraisal: A newer trend, utilizes a mediator and attempts to moderate the

adversarial nature of performance evaluations by allowing the subject to present first.

Also focuses on what the individual is doing right before any criticism is given. This
structure tends to be useful during conflicts between subordinates and supervisors.

Performance Appraisal Criticism

An issue with performance appraisals is that differentiating individual and organizational

performance can be difficult. And if the evaluation's construction doesn't reflect the culture
of a

company or organization, it can be detrimental. Employees report general dissatisfaction with

their performance appraisal processes. Other potential issues include:

Distrust of the appraisal can lead to issues between subordinates and supervisors or a

situation in which employees merely tailor their input to please their employer.

Performance appraisals can lead to the adoption of unreasonable goals that demoralize

workers or incentivize them to engage in unethical practices.

Some labor experts believe that use of performance appraisals has led to lower use of

merit- and performance-based compensation.

Performance appraisals may lead to unfair evaluations in which employees are judged not

by their accomplishments but by their likeability. They can also lead to managers giving

underperforming staff a good evaluation to avoid souring their relationship.

Unreliable raters can introduce a number of biases that skew appraisal results toward

preferred characteristics or ones that reflect the rater's preferences.

Performance appraisals that work well in one culture or job function may not be useful in

another.

Advantages of Performance Appraisals

Documentation: A PA provides a document of employee performance over a specific period of

time. It’s a piece of paper that can be placed in an employee file.

Structure: This process creates a structure where a manager can meet and discuss performance

with an employee. It forces the uncomfortable conversations that often need to happen.
Feedback: Employees crave feedback, and this process allows a manager the opportunity to

provide the employee with feedback about their performance and discuss how well

the employee goals were accomplished. It also provides an opportunity to discuss employee

development opportunities.

Clarify Expectations: Employees need to understand what is expected of them and the PA

process allows for a manager to clarify expectations and discuss issues with their employee.

Annual Planning: It provides a structure for thinking through and planning the upcoming year

and developing employee goals.

Motivation: The process should motivate employees by rewarding them with a merit

increase and as part of a comprehensive compensation strategy.

Disadvantages of Performance Appraisals

Creates Negative Experience: If not done right, the performance appraisal can create a negative

experience for both the employee as well as the manager. Proper training on process and

techniques can help with this.

Time Consuming: Performance appraisals are very time consuming and can be overwhelming to

managers with many employees. I’ve known managers who were responsible for doing an

annual PA on hundreds of employees.

Natural Biases: Human assessment are subject to natural biases that result in rater errors.

Managers need to understand these biases to eliminate them from the process.

Waste of Time: The entire process can be a waste of time if not done appropriately. Think about

the time investment when the end result is negative. It is time wasted on all fronts.

Stressful Workplace: Performance appraisals can create stressful work environments for both

employees and managers. Proper training can help to reduce the stress involved in the process.

Finally, performance appraisals are only as good as the performance management system it
operates within. Organizations that only do performance appraisals for the sake of doing them

are wasting their time.

LIMITATION

1. Bias of Appraiser:

The presence of ‘Halo Effect’ in evaluation of employees is the biggest weakness of this method.

2. Ambiguity in Standards:

If the standards are not clear, the supervisors may follow different standards for different

employees.

3. Insufficient Evide

An employee who can impress the boss may get a positive evaluation though his impression in

his own department may be very poor. In such cases, the performance appraisal will be

superfluous.

4. Several Qualities Remain Without Appraisal:

Through performance appraisal, only few qualities of employees can be measured. All

individuals differ from each other in terms of background, values and behaviour.