Kunalpant
Kunalpant
A
LIVE
PROJECT REPORT
ON
“BHARAT HEAVY ELECTRICAL LIMITED”
SUBMITTED BY
KUNAL PANT
SUBMITTED TO
MR. ARUN KUMAR SINGH
FOR
PARTIAL FULFILMENT OF THE DEGREE
OF
MASTER OF BUSINESS ADMINISTRATION
SESSION – 2018-19
AFFILATED TO
UTTARAKHAND TECHNICAL UNIVERSITY, DEHRADUN.
2
DECLARATION
I, Kunal Pant, hereby declared that the project report entitled “Bharat Heavy Electricals Limited” submitted by
me to the university in the partial fulfillment of the requirement for the award of degree of Master of Business
Administration under the guidance of “Mr. Arun Kumar Singh” is my original work & the conclusion drawn
therein are based on the material/data collected by myself.
The report submitted is my own work & hence not from any other source.
GUIDE CERTIFICATE
This is to certify that Kunal Pant is the bonofied student of MBA have successfully completed the project work
as described by the university in the partial fulfillment of the Master of Business Administration of the
academic year 2018-19.
ACKNOWLEDGEMENT
A successful project is the result of team work & coordination that includes not only the group of developers
who put for the ideas, logics but also those who guide them. So, at the completion of the project I feel obliged
to extent my gratitude towards all those who made valuable conclusions throughout my research period.
I am thankful for all the knowledge/guidance & support imparted by “Mr. Arun Kumar Singh” to me who gave
me invaluable knowledge in the period.
In addition I wish to convey deep sense of gratitude towards “hod name” at any time. I needed.
At the end just as significantly, I would like to express my sincere thanks to management department & all the
other members who have provided me excellent knowledge & guidance throughout my MBA degree.
Thanking You
TABLE OF CONTENT
1. INTRODUCTION 6-16
3. RESEARCH METHODOLOGY 21
5. FINDINGS 34
8. RECOMMENDATION 37-38
9. CONCLUSION 39-40
10. BIBLIOGRAPHY 41
INTRODUCTION
Performance appraisal is something which is not very old for the government organizations. Even today
railways, etc have just confidential reports as performance appraisal tool, but now even the public sector units
have introduced various methods to appraise the workers for their performance. Bharat Heavy electronics
limited( BHEL) is just one of those public sector units which have evolved greatly in terms of the use of various
human resource related activities, performance appraisal being one of them.
In the past ten years BHEL has introduced various methods for implementation of a best performance boosting
technique and now is quite successful too in its goal of devising a performance management system which is
fair and acceptable by all people whether the supervisors, artisans, executives or the top management. Presently
the technique used has been widely accepted and is successful too in achieving its goals of motivation and
employee satisfaction, “for only a satisfied employee can perform the best”.
BHEL is the largest engineering and manufacturing enterprise in India in the energy-related/infrastructure
sector, today. It was established more than 40 years ago, ushering in the indigenous Heavy Electrical
Equipment industry in India - a dream that has been more than realized with a well-recognized track record of
performance. The company has been earning profits continuously since 1971-72 and paying dividends since
1976-77.
BHEL caters to the core sectors of the Indian Economy, viz. Power, Transmission, Industry, Transportation,
Renewable Energy, Oil & Gas and Defence. The high level of quality & reliability of its products is due to the
emphasis on design, engineering and manufacturing to international standards by acquiring and adapting some
of the best technologies from leading companies in the world, together with technologies developed in its own
R&D centres. To get such standards and quality it requires a motivated and satisfied workforce, and to get such
a workforce it requires an effective performance appraisal scheme.
This organization has evolved its performance management scheme, earlier there was just confidential reports
for all the employees, now the system is quite different there is the system divided into three: for artisans and
supervisors the confidential reports continue to be used, then for the executives and others there is this web
based e-map system also known as Moving ahead through performance which has got various other tools which
have changed the picture of the performance management system at bhel.
In this project the performance appraisal scheme of BHEL is scrutinized along with the evolution of the
techniques used, also the improvement introduced or a policy omission, and most importantly the effectiveness
of this performance management system followed in the company throughout the country.
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COMPANY OVERVIEW
It was a great opportunity for India Government to establish Public Sector Undertakings to boost Indian
economy after 200 years of long British colonial rule. Mr. Jawaharlal Nehru, the first Indian prime minister
established many Public Sector Undertakings and at present there are about 236 public sector undertaking’s
working under government of India and among them Bharat Heavy Electrical Ltd. is one of the largest
engineering enterprises. Establishment of Public Sector Undertakings (PSU) had two main reasons one was to
provide employment and second was to become a savior of Indian economy. After Independence private
organizations provided lesser opportunity for employment. However, due to thrust on Public Sectors and due
to excessive job security it was a challenge before Management of PSU to deliver results. The work assessment
of all cadres of workers, supervisors and executives was of topmost priority. In view of above in PSU’s, system
was introduced for assessing the work etc of employees which was based on Annual Confidential Report.
Annul Confidential Report is a report which present an overview of an individual performance in the
organization. Later these reports were used only to analyze the performance of the lower grades while
performance of executives and top management was supervised through an E-MAP system while the
performance of units was scrutinized through Balance scorecard system.
Thus, BHEL now has a systematic and easy to understand and nonbiased and fair system for performance
appraisal, a system which has evolved over the years.
BHEL is the largest engineering and manufacturing enterprise in India in the energy related /infrastructure
sector .BHEL is one of the nine large public sector undertakings known as Navratnas or Nine jewels. BHEL
offers over 180 products and provides systems and services to meet the needs of the core sector like: power,
transmission, industry, transportation, oil & gas, non-conventional energy source and telecommunications.
BHEL was found in 1950s. The operation are organized in three business sectors; Power, Industry- including
Transmission, Transportation, Telecommunication & Renewable Energy and overseas business. Today BHEL
has a wide-spread network comprising 14 manufacturing units, 8 service centers, 4 power sector regional
centers, 18 regional offices, and a large no. of project sites spreads all over India and abroad. BHEL is one of
the largest exporters of engineering products and services from India. BHEL has established its references in
around 60 countries of the world, ranging from United States in the west to New Zealand in the Far East. Its
export range include: individual products to complete power station, turnkey contracts for power plants, EPC
contracts, HV/EHV Sub-Stations, O&M services for familiar technologies, specialized after-market services
8
like Residual Life Assessment(RLA) studies and retrofitting, refurbishing & overhauling and supplies to
manufacturers & EPC contractors.
BHEL Organization:
BHEL Operations are organized around three business sectors: Power, Industry & overseas business. These
are catered to by a country wide network of-
. 14 Manufacturing units
. 8 Service centre
. 18 Regional Offices
9
Present Status:
4. Stainless steels
Manpower
1. Well trained professionally qualified
2. 147 Engineers
3. 221 Supervisors
4. 870 workmen
Steel Melting
1. 3Arc Furnaces- 10T,30T ∓ 70T
2. 70 T VAD/VOD Furnaces
3. ESR Furnace
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Press
1. 2650T & 9000 T Pneumatic Forging press
2. 18M HT Furnace,Circular Furnace,Mist Quenching Facilities etc.
Machining Facilities
1. 7.3 M V. borers, WD160/220 [Link], 18M Deep Hole Boring machines
2. 18 M/10M centre lathes etc.
Testing Facilities
1. Latest Spectrometer, Hydrogen , Carbon/Sulphur determinators
2. No of sophisticated US Flaw detectors, Boroscopes, Radiographic Chambers and creep testing facilities.
Quality Certification
1. Well known Boiler board certification
2. Approved by LLoyd Register of Shipping
3. IS0-9000 Certification by BVQI
4. TUV certification
It is one of the four major manufacturing units of BHEL. It was established in the year 1962 with the Russian
collaboration. HEEP follows the corporate policies on HR, Materials Management, Finance Management and
Work Management etc. and focus on customer needs captured through S-maps. To align objective of the units
and its different function with corporation, unit has developed its business Policy, CSFs and functional Pole
Star Statements. HEEP is consistently earning profit since its breakeven in [Link] achieved an all time high
turnover of Rs.20.03 billion, PBT of Rs.4.41 billion, and EVA of Rs.2.14 billion in 2006-07. The 210, 250 and
500 MW thermal sets, made by HEEP, constitute of 65% of total thermal coal based power plants. These
contribute to 71% of total generation by coal based thermal sets in the country. In 2005-06 HEEP added 1250
MW to National grid and 312 MW added in Libya by export. And latest HEEP added 1500 MW NEW
TURBINE Shop in Haridwar Grid.
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Year Event
1962 Technical collaboration with Prommasho export, USSR, for setting up HEEP
1967 First product (Electric Motor) rolled out
1969 Manufacturing of first 100MW steam turbine
1971 Manufacturing of first 100MW Turbo Generator
.Breakeven achieved
.Technical collaboration with KWU(Siemens), Germany for coal based
1974
thermal sets
2001 Technical collaboration with KWU for coal based thermal setup up to
1000MW
extended for 10 years
2002 Accreditation of OHSAS-18001
2004 New Blade Shop Established
2006 HEEP wins CII-EXIM Bank Prize for Business Excellence
2008 HEEP employees won Prize for setting good quality product
2009 Provided Biggest Dynamo to JAPAN.
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S Products Percentage of
No. Turnovers
1. . Steam Turbine & Generators : 210-800 MW
. Condensers, Heat Exchangers and Pressure
vessels 91.5%
. Nuclear Turbines & Generators : 210-540MW
. Gas turbines & Generators : 156 MW (ISO)
2. Hydro Turbines & Generators : 5-250 MW 4.5%
Range of Products:
Main products of the unit are higher rating Thermal sets (210MW and above). Apart from these HEEP also
manufactures Hydro sets, large size AC motors, naval Guns (SRGM). The percentage distribution of product
profile is as follows-
Manufacturing:
Manufacturing Plants:
HEEP has state-of-art manufacturing facilities to deliver 3500MW of power generating equipments. HEEP has
absorbed world class technology through collaboration with M/s Siemens, Germany and plan to modernize its
manufacturing facilities to enhance the manufacturing capacity to 5250MW and its capability to manufacture
higher rating sets. Facilities added for manufacturing of Turbo Generators with total Impregnated Stator core
enabling development of Turbo Generators with higher efficiency. New Blade Shop with world-class machine
tools has led to indigenous developments & manufacture of advanced blades with improved heat rate. HEEP’s
product profile necessitates tailor made designs with contemporary features. These products are realized
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through modern machining processes, insulation systems, fabrication, assemblies and testing. Transportation
of large and heavy consignments is done through prudent logistic management.
Market
HEEP’s customer profile ranges from state electricity boards, Govt. Power utilities like NTPC, NPC and NHPC
to IPPs like Reliance Energy. HEEP has also exported gas turbines sets to Libya and Iraq. Power Sector
Regions of BHEL are its key internal customers. Their key customer, NTPC has drawn up plan for capacity
addition of 17,000 MW by 2012. HEEP has planed for execution of 34,619 MW by 2012.
CUSTOMER SEGMENT
0.028
0.062
NTPC
0.14
SEBs
0.445
Export
Defense
0.325 Others
Competition
Acquisition & mergers by Power Equipment Manufacturers have left BHEL, Siemens, GE and Alstom as major
players in India. SEPCO (China), LMZ (Russia), Dang Fang (China) and Skoda (Czech Rep.) are emerging
14
competitors. To meet the emerging challenges, focus is given on increasing manufacturing capacity and
introduction of new technologies. It helps HEEP to maintain it leading position in domestic market. Challenges
posed by china and other competitors has prompted HEEP to become aggressive in introducing 300/350 MW
sets to be ready for 800MW sets. HEEPs position has further strengthened as global competitors could not
fulfill expectations of Indian customers. BHEL was offered work of RAYALSEEMA PROJECT after failure
of CMEC, China. Similarly, BHEL is part of consortium in restarting Dabhol project after failure of Enron.
Strategic Challenges
The fast changing power scenario emerging with rapid growth in national power capacity has given unit a
major challenge of establishing power infrastructure in close in co-ordination with its key customers. To cater
the needs of higher rating sets of 800 MW, HEEP has collaboration with Siemens. To capture future customer
needs and expectations and emerging market scenario Strategic Map (S-Map) is prepared.
Satisfied Customers
The business policy also focuses on customer focused business leadership. HEEP regularly conducts
independent Customer Satisfaction Surveys that are used to identify priorities of customers and draw out
strategy accordingly. Focused efforts of HEEP has resulted in improvement of customer satisfaction index
from 55.39 in 2004 to 70.14 by 2005 having most of the parameters better than its competitors and sister units.
In 2006 perception of customers was collected internally.
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Work culture:
Vision, Mission and Values drive the organization behavior and work culture towards excellence. One of the
major strength of HEEP, Haridwar is its free, open participation of the employees in improvement projects,
Suggestion, quality circle and other new initiatives. HEEP has been Pioneer among the other BHEL units to
adopt many excellence initiatives. Special thrust on IT has led to development of many engineering and
business application by in-house development team. To promote excellence, in-house competitions are
organized through out the year. Unit has given award to the winners in Special Award Distribution Function.
HEEP has been awarded National Award for 14 consecutive years by INSSAN and National Award for
Excellence in Energy Conservation as “Energy Efficient Unit” by CII.
To study the process and to understand the importance of Performance Management System in BHEL that
synchronizes the performance of the employees so as to make the work effective.
To analyze the Performance Management System (e-Map) of BHEL in detail and its effectiveness.
To analyze the problems faced by the appraisee and the appraiser in this system.
To analyze the steps taken by the appraisers for the improvement of the performances of the appraisees.
To check the satisfaction level among the employees
17
RESEARCH METHODOLOGY
RESEARCH DESIGN
The research design in my case was exploratory research design, which is also known Formulative Research
Design.
The main purpose of my study was getting the opinion of people regarding the performance appraisal system
and what are the problems which are faced by the appraisees and the appraisers.
The research design in my study was flexible to provide opportunities for considering different aspects of the
problem under study.
Primary Data: First hand information was received from the employees through questionnaires and personal
interviews.
Secondary Data: The data from internet was collected to get a better insight and the company’s manual.
Sample size:
The sample size of my project is 100.
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1. Are you satisfied with the present performance appraisal system (E-map)?
(a) Yes [ ] (b) No [ ]
If No, then why ………………………
40%
YES
NO
60%
Interpretation: More than half of the employees are satisfied with the present performance appraisal system.
The employees who are not satisfied are mainly from E-1 to E-3 level.
2. Do you think the present system is effective / better than the previous appraisal system?
(a) Yes [ ] (b) No [ ]
30%
YES
NO
70%
Interpretation:70% of employees think that the current system (e-Map) is better than the previous system
(ACR) because earlier their result was totally confidential and was not known to them.
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40%
YES
NO
60%
Interpretation: 60% of the employees think that this system reduces biasness because the KRA evaluation is
transparent to each appraisee.
20%
YES
NO
80%
Interpretation: 80% executives have no problem in selecting the KRA’s because everything is completely
elaborated and they are given choices to choose among many of their calib
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15%
YES
NO
85%
Interpretation: 85% executives are helped by their appraisers in selecting KRA’s. This shows the good
inter personal relationship between the appraisee and the appraiser.
6. Do you think the present list of KRAs cover all aspect of your job?
(a) Yes [ ] (b) No [ ]
25%
YES
NO
75%
Interpretation: Only 25% executives feel that the present list of KRA’s doesn’t cover all aspects of their job.
The Executives which are under grade E1- E3 are unsatisfied.
21
32%
YES
NO
68%
Interpretation: More than 65% appraisers feel that part-b should not be transparent to an appraisee as this is
the only part through which they can control the performance of their subordinates.
30%
YES
NO
70%
Interpretation: 70% executive says that they get the formal feedback regarding their performance by their
superiors regularly while carrying out their work.
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9. Are any steps taken to improve the performance if not up to the mark?
(a) Yes [ ] (b) No [ ]
If yes, then what ………………………………………….
30%
NO
YES
70%
Interpretation: 30% executives say that the proper training is given to them for upgrading their job whenever
required.
35%
YES
NO
65%
Interpretation: 65% executive feels that these steps are useful as they develop their skills and competencies.
23
FINDINGS
RECOMMENDATION
1. Proper training program should be conducted about the E-Map system for the new trainees.
2. Whenever there are any changes in the KRA’s the executives should be informed about it in
advance.
3. Executives should be know that on what basis they performance is being measured in Part-B as
this plays an important role at the time of their promotion.
4. Some personality development trainings should also be provided apart from mere job oriented
training.
27
CONCLUSION
After going through the functioning of the performance management system at BHEL, it could be said that in
order to bring about transparency it has brought about an online system through which people could see what
they have been rated where do they stand in terms of their ratings on what parameters they are being rated,
feedback given to them by their seniors and so forth.
The system for performance appraisal is different for the supervisors and the executives while the workers and
supervisors are still going on with their annual CR’s the e-map system exists for the executives. The change
that BHEL has brought from this year is that they have made the confidential reports online now so the
supervisors can know about the ratings from the supervisors thus making the system transparent for there was
a problem that the supervisor’srating depended upon the relation with their superiors.
The E-map system has been quite effective with people being satisfied in being able to make their own action
plan and key result areas, also the appraiser can change these KRA’s if it does not go as per the work required
out of the people. The appraisal process starts with the self appraisal technique leading to appraisal by the
immediate superior leading to reviewing from the reviewing officer then to the head of the department and so
forth, thus rating does not depend on rating from only the superiors.
Although people do have problem that the relation with superiors may hamper their performance, but in a way
it is a transparent technique, in which continuous feedback is given, reasons are given for negative feedback
and regular training is given in case of improvement or need.
The superiors give quality time for their subordinates growth too guidance and advices are given through the
Mid year review which helps in improving the yearly performance. There is also a cascade of performance
which helps in achieving the organization’s goals, individuals align their goals as per the departments which
sets its agenda as per the unit’s agenda which decides its objectives as per the mission and vision of the
company. To keep a check of each of unit’s or department’s work there is this balance scorecard for appraisal.
Thus we see that the appraisal technique at BHEL is made keeping in mind each and every aspect of the
requirements for a satisfactory and efficient work force.
People differ in their abilities and their aptitudes. There is always some difference between the quality and
quantity of the same work on the same job being done by two different people. Performance appraisals of
Employees are necessary to understand each employee’s abilities, competencies and relative merit and worth
for the organization
28
BIBLIOGRAPHY
Company’s manual
[Link]
[Link]
E-MAP Manual
29
APPENDIX
QUESTIONNAIRE
1. Are you satisfied with the present performance appraisal system (E-map)?
(a) Yes [ ] (b) No [ ]
If No than why …………………………..
2. Do you think the present system is effective / better than the previous appraisal system?
(a) Yes [ ] (b) No [ ]
6. Do you think the present list of KRAs cover all aspect of your job?
(a) Yes [ ] (b) No [ ]
9. Are any steps taken to improve the performance if not upto the mark?
(a) Yes [ ] (b) No [ ]
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
Name : ……………………………
Designation : ……………………………
31