Does PSUs have best appraisal system for their employees.

Question BankCategory: Law & AuditDoes PSUs have best appraisal system for their employees.
Manish Kumar asked 4 months ago

Does PSU have best appraisal system for their employees.

1 Answers
Mohit answered 4 months ago

Many people think that Public sector companies have best appraisal system. But this is myth. A normal small office may have a better appraisal system then PSUs…
Many of my friends are working in PSUs. On the basis of various inputs received, I am explaining that how appraisal or promotion and bonus system works in Public section enterprises. Many people are not aware that how PSUs rank their employees for promotion or bonus.
Promotion/ appraisal or bonus system of PSU:-

  • In many PSUs, employees are asked to set their targets for next one year i.e. listing out the work allotted to them and giving it a value and target for completing the work. For example…mr. x has two task (1) bill payment (2) reply to audit observation . Then he can value 80 % of his work is (1) and 20% for (2) Then he can set a target like he will complete work (1) in just 5 days after a bill received for payment and he will reply 90% of audit observation within due time.
  • After setting the target his reporting officer has to give his approval and target sets by mr. X are genuine. and if he achieve all the target then i will be an achievement for the year.
  • then throughout the year, Mr. x has to keep informing his reporting officer about his progress about the target set at the start of year.
  • Then at the end of year. First mr. x has to evaluate himself that whether has achieved all the target or not. Then on the basis of his his analysis he give marks to himself. like Mr. X give himself 99% marks. and send the note to his reporting officer for approval.
  • Then his RO analyse his working for that year that he has achieved all the target or not. Then he give marks to Mr. X for example, Reporting officer may reduce marks of Mr. X to 98% from 99%.
  • Then RO send these marks to head of the department for approval along with comment of reporting office about the working of Mr. X throughout the year. Then HOD give marks to Mr. X ..for example HOD reduces marks of mr. x to 95% form 98%.
  • Then these marks are sent to Head office for approval along with comment of HOD. Then head office can reduce marks of mr. x upto 5% without any reason. but to reduce marks more than 5% head office has to provide a reason for reducing the marks.
  • Then final marks given by Head office are communicated to the employee.
  • On the basis of marks received by each employee promotion or bonus is decided in PSUs.
  • Till now you may think that this is the best system. but there are many problems are given below:-
  • if an employee has to evaluate himself at first then he should be free to evaluate himself. But this does not happen like this. At the time when employee evaluate himself, HOD & RO ordered him to give marks as decided by them not the employee. this is done to make it easy for them to reduce the marks for those employee to him they do not like. it means marks at all three level…employee, RO and HOD…are pre-decided by HOD.
  • Those employee who refuse to sign a improper document which should not be signed, but his boss was forcing him to sign. Such employees are given least marks and those who does buttering for their boss got highest marks. It mean a true employee has no scope to get highest marks. Because truth is bitter.
  • Further if marks of an employee is reduced by boss even after achieving all the target. Then employee must have a right to ask for reason. but boss never provide reason.
  • So appraisal system is nowhere best…and do not expect it to be best. Office politics can be seen in every office. Just do your work with honesty and leave the rest on your boss.


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