HDFC STANDARD LIFE INSURANCE

INTERNSHIP REPORT
Submitted By: PARSHURAM SAHOO

IILM/PGP/JYO8/OO

IILM Bu!i"e!! S#$%%& Hyde'(b(d C(m)u! B(&("(*('+ Hyde'(b(d,

-CERTIFICATE-

This is to certify that this Project entitled PERFORMANCE APPRAISAL SYSTEM OF HDFC STANDARD LIFE INSURANCE COMPANY is the bonafid work of M',P('!$u'(m S($%% submitted in partial fulfillment of the requirements for the award of Degree of MA T!" #$ %& '(! ADM'(' T"AT'#( by '')M %usiness chool* +yderabad,

Ms, %arnali -hosh '')M %usiness chool +yderabad / 011123

-, Murali .rishna '')M %usiness chool +yderabad 4 011123

+ead of the Department '')M %usiness chool %alanagar +yderabad / 011123 Dear ir*

Date:1st eptember 5116

This is to certify that M', P('!$u'(m S($%% /O M', Sub%d$ -um(' S($%% student of M%A ''nd emester bearing enrollment (o, !'')M&7187$11531 of '')M %usiness chool* +yderabad has successfully completed the practical training in our company during the period from .!t Ju"e /001 t% 2.!t Au* /001, The objecti9e of the assignment was :T$e Pe'3%'m("#e A))'(i!(& Sy!tem O3 HDFC St("d('d Li3e I"!u'("#e C%m)("y4, ;e find Mr, Parshuram ahoo as enthusiastic and hard working and we wish him all success in future, <ours sincerely* P, rini9as "ao,

HDFC St("d('d Li3e I"!u'("#e S%m(5i*ud(+ B'("#$,

AC-NO6LEDGEMENT
' would like to con9ey my heartiest gratitude to se9eral people* for their support and guidance which helped me complete my ummer 'nternship, $irst and foremost ' would like to thank HDFC St("d('d Li3e I"!u'("#e C%, Ltd,+ S%m(5i*ud( B'("#$ for gi9ing me an opportunity to do my internship in their esteemed organi=ation, My special appreciation e>tends to M', P, S'i"i7(! R(% 8B'("#$ S(&e! M("(*e'? * M',9e":(t( S B%))(""( @S(&e! De7e&%)me"t M("(*e'; and M', -, S'i:("t 8B'("#$ T'(i"i"* M("(*e'; of HDFC SLIC S%m(5i*ud( B'("#$ for their constant encouragement through out this period, ' would also like to thank our Aampus Ao4ordinator* M', G, Mu'(&i -'i!$"(, And also M!, Ne$( S(<e"( and M!, B('"(&i for their guidance and unflinching support through out the phases of my internship, My special thanks to my classmates and dear friends* M', S("t%!$ -um('+ M',U, -'i!$"( R(%+ M', P'(7ee" -um(' ("d M', B Ti'u)(t$i for their support through out my internship, ;ith their help ' could complete my work efficiently and effecti9ely, )ast but not the least* my endless appreciation goes to my family who has stood by my side and gi9en me moral support whene9er ' was low and boosted my will power, T$(": Y%u, PARSHURAM SAHOO '')M %& '(! A+##)* +<D!"A%AD st DAT!4 1 eptember 5116 P)AA!4+yderabad,

CONTENTS
SL,N% . E=ECUTI9E SUMMARY / 2 ? @ > 8 1 .0 .. ./ .2 .? .@ . .> .8 .1 /0 INTRODUCTION HDFC PROFILE STUDY DESIGN SAMPLE DESIGN LIMITATION INTRODUCTION TO PERFORMANCE APPRAISAL NEED FOR PERFORMANCE APPRAISAL ACHIE9ING ORGANIAATIONAL GOAL CHARACTERISTIC OF GOOD PERFORMANCE APPRAISAL E9ALUATION TECHNIBUE METHOD OF PERFORMANCE APPRAISAL FACTOR INFLUENCING PERFORMANCE OF AN EMPLOYEE AD9ANTAGES SAMPLING DATA ANALYSIS AND INTERPRETATION FINDING SUGGESTION BUESTIONNAIRE BIBILOGRAPHY P(*e, N% > 8 /@ / /> /8 20 2. 2/ 2/ 2? ?? ?@ ?> ?8 > 8 1 >.

E=ECUTI9E SUMMARY
This internship report consists of the o9erall e>perience of online working as a part of HDFC St("d('d Li3e I"!u'("#e C%+ Ltd, This e>perience helped me understand the basic functioning of the organi=ation where ' was inducted, My 'nternship program 4 Project TitleC Pe'3%'m("#e A))'(i!(& Sy!tem %3 HDFC SLIC, The best learning e>perience was that ' started from the 9ery basics of getting to that position and not from the position itself, This helped me get useful insight and understanding of online marketing* the benefits to the members as well as the HDFC St("d('d Li3e I"!u'("#e C%m)("y, Training sessions were held to gi9e me insights about +ow to create markets and write comments on other memberCs markets and to encourage and appreciate them for their nice efforts and creati9e markets, ' also learnt how to work online for such a nice company HDFC St("d('d Li3e I"!u'("#e C%, Ltd which enhanced my knowledge* writing skills and communication,

INTRODUCTIONC
The process of +uman "esource De9elopment @+"D? helps the employeeCs to acquire and de9elop technical* managerial and beha9ioral knowledge* skills E abilities and the 9alues * beliefs Eattitudes necessary to perform present and future roles, The process of Performance Appraisal helps the employees and management to know the le9el of employees Performance compared to the standard or predetermined le9el, Performance Appraisal is important to understand and impro9e the employeeCs performance through +"D, 'n fact* Performance Appraisal is the basis of +"D, 't was 9iewed that Performance Appraisal was useful decide employeeCs promotion or transfer* salary determination, %ut the recent de9elopments in +"D indicate that Performance Appraisal is the basis for employee de9elopment, Performance Appraisal indicates the le9el of desired performance le9el and actual performance and the gape between these two, This gap should be bridged through training* counseling and moti9ation etc, 'n e9ery organi=ation* the process of +"D helps the employeeCs to acquire and de9elopment technical* managerial and beha9ioral knowledge* skill* and abilities* belief and attitudes necessary e>ists to achie9e goalsF the degree of success obtained by the indi9idual employee in achie9ing indi9iduals goals directly determines the organi=ational effecti9eness, The assessment of the degree of success of an indi9idual employee is an important part of +"M that leads to the Performance Appraisal,

'n American business* the Performance Appraisal is done to determine wage increase* promotion* transfer* regarding the emphasis for the feedback to the employeeCs and assessing the need for their training is 9ery less or we can say itCs little, 'n contrast* 'ndian companies use Performance Appraisal for training and de9elopment* pro9iding feedback to the employeeCs and personal research, They also use it in determining wages and transfers as they do it in the American companies, The purpose of Performance Appraisal to make a distinction between performer and non performer on the job, The aim of the project is to focus on the Performance Appraisal system undergone in +D$A tandard )ife 'nsurance Ao )td @+D$A )'A?, This project aim to study the need for Performance AppraisalF how it helps the employees of the #rgani=ation to impro9e their abilities so as to meet both the personal and organi=ational present and future requirements, ;hether the organi=ation is reaching its standards by Performance Appraisal resulting in increase in quality and producti9ity of the employees obser9ed, The o9erriding purpose of Performance Appraisal is to help HDFC St("d('d Li3e I"!u'("#e C%m)("y Limited employees to impro9e and thus to impro9e organi=ational effecti9eness, Performance Appraisal therefore institutional needs as well as staff member needs* abilities* moti9ation and e>pectancies,

/, HDFC PROFILEC
+ousing De9elopment $inance Aorporation )td, @+D$A?* 'ndiaCs premier housing finance institution has assisted more than 2,2 million families own a home* since in inception in 1633 across 5B11 cities and town through its network o9er 501 offices, 't has international offices in Dubai* )ondon and ingapore ser9ice associates in audi Arabia* Gatar* .uwait and #man to assist ("'Cs and P'#Cs to own a home back in 'ndia, As of December 5118* the total asset si=e has crossed more than "s, 60*111 cores including mortgage loan assets of more than "s, 82*811 cores, The corporation has a deposit base of "s, 13*001 cores* earning the trust of more than 6* 11*111 depositors, Austomer er9ice and satisfaction has been the mainstay of the organi=ation, +D$A has set benchmarks for the 'ndian housing finance industry, "ecognition for the ser9i6ce to the sector has come from se9eral national and international entities including the ;orld %ank that has lauded +D$A as a model housing finance company for the de9eloping countries, +D$A has undertaken a lot of consultancies abroad assisting different countries including !gypt* Maldi9es* and %angladesh in the setting up of housing g finance companies, +D$A %ank was incorporated in August 166B* and currently has a nationwide network of 1B15 %ranches and 250Cs ATMCs in 058 'ndian towns and cities, The +ousing De9elopment $inance Aorporation )imited @+D$A? was amongst the first to recei9e an Hin principleC appro9al from the "eser9e %ank of 'ndia @"%'?to set up a bank in the pri9ate sector* as part of the "%'Cs liberali=ation of the 'ndian %anking industry in 166B, The bank was incorporated in August 166B in the name of H+D$ACs %ank )imitedC* with its registered office in Mumbai* 'ndia, +D$A %ank commenced operation as a cheduled Aommercial %ank in Ianuary 1660,

A6ARDS AND ACCOLADESC

6

 Awarded the !conomic Times Aorporate Aiti=en award in 511B,

Presented HDream +omeC award for the biggest housing finance

pro9ider in 511B,
+D$A "anked as 'ndiaCs Third %est Managed Aompany by $inance

Asia 5110,
+D!A won the %est award for :'n9estment Management in 'ndiaJ at

the !uro money 511D "eal !state Awards,

:%est +ome )oan Pro9iderJ title at the K!! Pinnacle Awards 511D,

:%est trategyJ* at the BPs %usiness* Marketing EAd9ertising Power

Awards 511D, Dun E %radstreet /American !>press Aorporate Award 511D, ar &tha .e Iiyo Among 'ndiaCs D1 -lorious Ad9ertising Moments Ianuary* 5118,

"ecei9ed 5118 A'# %old 111 and A'# ecurity Awards,

"ecei9ed PAGuest %est 'T 'mplementation Award May* 5118,

&nit )inked 5118,

a9ings Plan Tops Mint %est TL Ads

ur9ey March*

HDFC G'%u) C%m)("ie!C

11

Ot$e' C%m)("ie!C +D$A Property Lentures )td +D$A De9elopers )td, -"&+ $inance )td, +D$A Lentures Trustee Aompany )td, +D$A Trustee Aompany )td +D$A 'n9estments )td +D$A +oldings )td Aredit 'nformation %ureau @'ndia? )td +D$A ecurities

BANC ASSURANCEC
11

C('ee'C
+D$A %ank is a dynamic bankF with a youthful and enthusiastic team determine to accomplish the 9ision of becoming a world4class 'ndian bank, #ur business philosophy is based on four core 9alues / Austomer $ocus* #perational !>cellence* Product )eadership and People, ;e belie9e that the ultimate identity and success of our bank will reside in the e>ceptional quality of our people and their e>traordinary efforts, $or this reason* we are committed to hiring* de9eloping* moti9ating* and retaining the best people in the industry,

Mi!!i%" ("d Bu!i"e!! St'(te*yC

#ur mission is to be a :;orld4Alass 'ndian %ank*J benchmarking oursel9es against international standards and be practices in terms of product offerings* technology* ser9ice le9el* risk management and audit and compliance, The
15

objecti9e is to build sound customer franchises across distinct business so as to be a preferred pro9ide of banking ser9ice for target retail and wholesale customer segment* and to achie9e a healthy growth in probability* consistent with the %ankCs risk appetite, ;e are committed to do this while ensuring the highest le9els of ethical standards* professional integrity* corporate go9ernance and regulatory compliance, #ur business strategy emphasi=es the following:
$ocus on high earnings growth with low 9olatility,

Maintain our current standards for asset quality through disciplined credit risk management, Aontinue to de9elop products and ser9ice that reduces our cost of founds, De9elop inno9ati9e product and ser9ices that attract our targeted customers and address inefficiencies in the 'ndian financial sector, )e9erage our technology platform and open scaleable systems to deli9er more products to more customers and to control operating costs,

E C%')%'(te G%7e'"("#eC
+D$A %ank recogni=es the importance of good corporate go9ernance* which is generally accepted as a key factor in attaining fairness for all stake holders and achie9ing organi=ational efficiency, This corporate -o9ernance Policy* therefore* is established to pro9ide a direction and framework for managing and monitoring the bank in accordance with the principle of goods corporate go9ernance,

St("d('d Li3e DU-E

tandard )ife 'nsurance Aompany is one of the most trusted 'nsurance Aompanies worldwide based at !dinburgh* cotland @&.?, $ounded

12

in 1850* Aurrently o9er 3 million Austomers worldwide* operation in all the important markets of the world like Austria* Aanada* Ahina* -ermany* pain* +ong .ong* 'reland and 'ndia through its network,

tandard )ife listed on 11th Iuly 511D* the biggest float on the )ondon tock !>change in the last fi9e years, tandard )ife 'nsurance Ao, is the largest mutual insurance company in !urope, products,

Pro9iding range of sa9ing* pension* and protection and in9estment

As at December 511D*

tandard )ife $inancial trength has total Assets under management &. M 150 billion @more than "s, 11* BD* 636 or '(" 11* BD6* 361*111*111 cores,?

St("d('d Li3e G'%u) C%m)("ie!C

tandard )ife 'n9estment manages assets for the group as well as third parties* and has a record of strong in9estment performance, tandard )ife +ealthcare is one of the largest pri9ate medical insurance pro9iders in the &., tandard )ife %ank offers a range of mortgages and sa9ings products* and had mortgage book of M 11,D billion as at 21st December 5110,

'(" 816,D6 billion or 81* 6D6 cores,

HDFC St("d('d Li3e I"!u'("#e C%, LtdC

HDFC St("d('d Li3e I"!u'("#e C%m)("y Limited is a joint 9enture between HDFC Ltd* a )eading $inance Aompany in 'ndia E tandard )ife Assurance* the largest mutual 'nsurance Aompany in !urope,
1B

The financial e>pertise of +D$A -roup* combined with the 'nsurance e>pertise of tandard )ife is committed to offer better financial solution to the customers, #ur study of Pe'3%'m("#e A))'(i!(& in the HDFC St("d('d Li3e I"!u'("#e C%m)("y Limited is the major stack in the HDFC LTD,

I"t'%du#ti%"
J%i"t 7e"tu'eC St(:e H%&di"* P(tte'"

10

/ ,00F

>?,00F

+D$A tandard )ife 'nsurance Aompany )imited is one of 'ndiaCs leading insurance companies* which offers a range of indi9idual and group insurance solutions, 't is a joint 9enture between +ousing De9elopment $inance Aorporation )imited @+D$A )imited?* 'ndiaCs leading housing finance institution and a -roup Aompany of the tandard )ife Plc* &., As on $ebruary 58* 5116 +D$A )td* holds 35,B2N and tandard )ife @Mauritius +olding? 5D,11N of equity in the joint 9enture* while the rest in held by others, +D$A tandard )ife belie9es that stabling a strong and ethical foundation is an essential prerequisite for long term sustainable growth, To ensure this we ha9e concentrated our focus on e>pansion of branch network* organi=ing an efficient well trained sales force* and setting up appropriate system and process with optimum use of technology, As all these areas from the basic infrastructure for establishing the highest possible customer ser9ice standards,

9i!i%" %3 HDFC St("d('d Li3e I"!u'("#e C%, LtdG

The most successful and admired life insurance company which mean that we are the trusted company* the easiest to deal wit* offer the best 9alue for money* and set the standard in the industry, I" !$%'t+ HT$e m%!t %b7i%u! #$%i#e 3%' (&&4

Ou' :ey !t'e"*t$!C

Fi"i#(& E<)e'ti!e

1D

As a joint 9enture of leading financial ser9ices groups* HDFC St("d('d Li3e has the financial e>pertise required to manage your long term in9estments safety and efficiently, R("*e %3 S%&uti%"! ;e ha9e s range of indi9idual and group solutions* which can be easily customi=ed to specific needs, #ur group solutions ha9e been desired to offer you complete fle>ibility combined with a low charging structure, T'(#: 'e#%'d !% 3(' #ur gross premium income for the year ending March 21* 5116 stood at "s, 0*0DB,D6 cores, The company has co9ered o9er 11* 11*111 li9es as on March 21* 5116, #ur core 9alues are drilled down to all le9els of employees* as these are in9iolable, ;e continue to promote high integrity in business practices and shun short cuts and unethical practices* as we wish to be percei9ed as an institution with high moral standing, ince our inception in 5111* when 'ndian insurance space was opened for pri9ate participation* we ha9e consistently focused on setting benchmarks in all aspect on insurance business, %eing the first pri9ate player to be registered with the '"DA and the first to issue a policy on December 15* 5111* our differentiators are:

9(&ue! %3 HDFC St("d('d Li3e I"!u'("#e C%, LtdG,

Ou' 7(&ue!
13

 I"te*'ity I""%7(ti%" Cu!t%me' Ce"t'i# Pe%)&e #('e Te(m I%': J%y ("d !im)&i#ity

St'%"* )'%m%te'C
+D$A standard life is a strong financially secure business supported by two strong and secure promoters / HDFC Ltd and tandard )ife, HDFC LtdJ! e>cellent brand strength emerges from its unrelenting focus on corporate go9ernance* high standards of ethics and clarity of 9ision, tandard )ife is a strong* financially secure business and a market leader in the U- Li3e K Pe"!i%"! !e#t%',

P'e3e''ed ("d t'u!ted b'("dC

#ur brand has managed to set a new standard in the 'ndian life insurance communication space, ;e were the first pri9ate life insurer to break the ice using the idea of :S(' Ut$( -e Jiy%4, Today* we are one the few brands that customer recogni=e* like and prefer to do business, Moreo9er* our brand thought* :S(' Ut$( -e Jiy%4+ is the most recalled campaign in its category,

I"7e!tme"t )$i&%!%)$yC

18

;e follow a conser9ati9e in9estment management philosophy to ensure that our customerCs money is looked after well, The in9estment policies and actions are regularity monitored by a formal in9estment committee comprising non4 e>ecuti9e directors and the Principal #ffers E !>ecuti9e Director, As a life insurance company we understand that customer ha9e in9ested their sa9ings with us for the long term with specific objecti9es in mind, Thus* our in9estment focus is based on the primary objecti9e of protecting and generating good* consistent* and stable in9estment returns to match the in9estorCs long term objecti9e and return e>pectations* irrespecti9e of the market condition,

Need b(!ed !e&&i"* ())'%(#$C

Despite the criticality of the life insurance sales in the industry ha9e been characteri=ed by o9er by reliance on ta> benefits and limited ad9ice4based selling, #ur eight4step structured sales process :DishaJ howe9er* helps customers understand their latent needs at the first instance itself without focusing on product features or ta> benefits, (eed4 based selling process* :DishaJ the first of its kinds in the industry* looks at the whole financial picture, Austomers see a plan not piecemeal product selling,

Ri!: #%"t'%& 3'(me I%':C

+D$A tandard )ife has fully implemented a risk control framework to ensure that all types of risks @not just financial? are identified and measured, These are regularly reported to the board and this ensures that the company management and board members are fully aware of any risks and the actions taken to ensure they are mitigated,

F%#u! %" t'(i"i"*C

16

Training is an integral part of our business strategy, Almost all employees ha9e undergone training to enhance their technical skill or the softer beha9ioral skill to be able to del9er the ser9ice standards that our company has for itself, %esides the mandatory training that financial consultants ha9e to undergo period to being licensed* we ha9e de9eloped and implemented 9arious training modules co9ering 9arious including product knowledge* selling skills* and objecti9e handling skills* professional and so on,

F%#u! &%"* te'm 7(&ueC

HDFC St("d('d Li3e does not focus in the business of ramping up the top line only* but to create ma>imi=ation of stake holderCs 9alue, Today* we are e>tremely satisfied with the base that we that we ha9e created for long term success of this company,

T'("!)('e"t de(&i"*C
;e are one the few companies whose product details* pricingF clauses are clearly communicated to help customer take the right decision,

St'i#t #%m)&i("#e Iit$ 'e*u&(ti%"!C

;e ha9e initiated and implemented many new processes* some of which were found useful by the '"DA and later made mandatory for the entire industry, The agent who successfully completed this training only* was authori=ed by the company to sell &)'Ps, This has been made compulsory by '"DA for all insurance companies under the new &nit )inked -uidelines,

Di7e'!i3ied )'%du#t )%'t3%&i%C

51

+D$A tandard )ifeCs wide and di9ersified product portfolio help indi9iduals meet their 9arious need* be it: P'%te#ti%"C (eed for a sound income protection in case of your unfortunate demise

I"7e!tme"tC (eed to ensure long term real growth of your money

S(7i"*!C

a9e for the milestones and protect your sa9ings too

Pe"!i%"C (eed to sa9e for a elf "espectable and comfortable life at "etirement tage

He(&t$C Ao9er for health related e>igencies

AI('d! ("d A##%&(de!C

:%est (ew 'nsurerJ Award from #utlook money / 5112,

:Most "espected Pri9ate 'nsurance AompanyJ Award from %usiness ;orld / 511B,

:%est (ew 'nsurerJ Award from #utlook Money / 511D,

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+D$A tandard )ife elected as HBPs Power %rand 511DC* for being of the 'ndiaCs Top 50 Most 'nno9ati9e AompaniesC,

C B'ie3 P'%3i&e %3 t$e B%('d %3 Di'e#t%'!C

M', Dee)(: S,P('e:$ is the Ahairman of the Aompany, +e is the !>ecuti9e Ahairman of +ousing De9elopment $inance Aorporation )imited @+D$A )imited?, +e joined +D$A )imited in a senior management position in 1638, +e was inducted as a whole /time director of +D$A )imited in 1680 and was appointed as its !>tenuati9e Ahairman in 1662,+e is the Ahief !>ecuti9e #fficer of +D$A )imited, Mr, Parekh is a $ellow of the 'nstitute of Aharted Accountants @!ngland E ;ales?, Si' A&e<("de' M,C'%mbie joined the %oard of Directors of the Aompany in April 5115, +e has been with tandard )ife -roup for 2B years holding 9arious senior management positions, +e was appointed as the -roup Ahief !>ecuti9e of the tandard )ife -roup in March 511B, M', -e:i M, Mi!t'y joined the %oard of Directors of the Aompany in December* 5111, +e is currently the Managing Director of +D$A )imited,

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+e joined +D$A )imited in 1681 and became an !>ecuti9e Director in 1662, +e was appointed as its Management Director in (o9ember* 5111,

M!, M('#i( D, C(m)be&& is currently the -roup #perations Director in the tandard )ife -roup and is responsible for group operations, Asia Pacific De9elopment* trategy E Planning* Aorporate "esponsibility and hared er9ices Aentre, Ms, Aampbell joined the %oard of Director in (o9ember 5110, M!, Re"u S, -('"(d is !>ecuti9e director of +D$A )imited* is a graduate in law and holds a MasterCs degree in economics from Delhi &ni9ersity, he has been employed with +D$A )imited since 1638 and was appointed as the !>ecuti9e Director in 5111, he is responsible for o9erseeing all aspects of lending operations of +D$A )imited, M', G(ut(m R, Di7(" is a practicing charted Accountant and is a $ellow the 'nstitute of Aharted Accountants of 'ndia, Mr, Di9an was the $ormer Ahairman and managing committee member of medsnell group international association of independent accounting firms and has authored se9eral papers of professional interest, Mr, Di9an has wide e>perience in auditing and ta>ation planning of indi9iduals and limited companies and also has substantial e>perience in structuring o9erseas in9estment to and from 'ndia, M', R("5(" P("t is a global Management Aonsultant ad9ising A!#7%oards on trategy and Ahange Management, Mr, Pant* until 5115 was a Partner E Lice / President at %ain E Aompany* 'nc,* %oston* where he led the worldwide &tility Practice, +e was also Director* Aorporate %usiness De9elopment at -eneral !lectric head quarters in $airfield* & A, Mr, Pant has an M%A from the ;harton chool and %! @+onors? from %irla 'nstitute of Technology and ciences,

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M', R(7i N('(i" is the Managing Director E A!# of (ational tock !>change of 'ndia )imited, Mr, "a9i (arain was a member of the core team to set4 up the ecurities E !>change %oard of 'ndia @ !%'? and is also associated with 9arious committees of !%' and the "eser9e %ank of 'ndia @"%'?,

M', Ge'(&d E, G'im!t%"e was appointed Ahairman in May 5113* ha9ing been Deputy Ahairman since March 511D, +e became a director of the standard life assurance company in Iuly 5112, +e is also Ahairman of Aando9er 'n9estment plc and was appointed as one of the &.Cs %usiness Ambassadors by the Prime Minister in Ianuary 5116, -erry held senior positions within the Department of the +ealth and ocial ecurity and +M Treasury until 168D, +e then spent 12 years with chroders in )ondon* +ong .ong and (ew <ork* and was Lice Ahairman of chrodersC worldwide in9estment banking acti9ities from 1668 to 1666, +e is the Director to Si' A&e<("de' C'%mbie, M', P('e!$ P('(!"i! is the principal officer and e>ecuti9e director of the company (o9ember 1B* 5118, A fellow of the institute of Aharted Accountant of 'ndia* he has been associated with the +D$A -roup since 168B, During his 1D / yearCs tenure at +D$A )imited* he was responsible for dri9ing and spearheading se9eral key initiati9es, As one of the founding members of +D$A tandard life* Mr, Parasnis has been responsible for setting up branches* performance management system* o9erseeing new business new business claims settlement* customer interactions ect,

Ot$e' C%m)("ie!
+D$A Trustee Aompany )td,

-"&+ $inance )td,

5B

 +D$A Property Lentures )td,

+D$A De9elopers )td,

+D$A 'n9estments )td,

+D$A +olding )td,

Aredit 'nformation %ureau @'ndia? )td,

STUDY DESIGN
Ob5e#ti7e %3 t$e !tudy
1, To study the performance appraisal system in +D$A tandard )ife insurance Ao )td, 5, To asses the degree of awareness among employers and employees on performance appraisal in +D$A tandard )ife 'nsurance Ao )td, 2, To know the satisfactory le9el and the comfortable le9el between the !mployees and superiors, B, To asses whether the appraisal is done without any bias the employees,
5.

To know and identify merits and demerits of performance appraisal in +D$A tandard )ife 'nsurance Ao )td,

Met$%d%&%*y %3 t$e !tudy

50

Methodology is said to be the procedure or way in which the project work has been done, 'n the project work* the methodology adopted is data collection and sample plan, S%u'#e %3 d(t(C The data for the study has been collected from 9arious primary and secondary sources, P'im('y d(t(C Primary data is collected of facts on the subject of the study by the researcher, 't can be collected through questionnaires,

Bue!ti%""(i'eC
't is formali=ed set of question* with are logically and systematically arranged to collect the information useful for the proposed study, The questionnaire in this study is structured containing a limited number of questions which are easy and to understand, The layout of their questionnaire is farmed in such a way that confusing and rerecording error are minimi=ed, The Guestionnaire is mainly desired to measure the effecti9eness of performance appraisal system for e>ecuti9e in A",

Se#%"d('y d(t(C
econdary data reface to the use of information already collected and published or unpublished, The sources are books* journals* reports etc,

SAMPLE DESIGNC

5D

1, Population: The population for the present study consists of all the employees of +D$A tandard )ife Ao )td working at omajiguda %ranch4L,
2.

ample si=e: The si=e of the sample for the present study is confined to 01 employees belonging to personnel, Administration* marketing department of +D$A tandard )ife 'nsurance Ao )td, omajiguda %ranch4L, The si=e is confined due to time and a9ailability, ample Technique: The sample for the present study is selected using simple random technique,

2,

LIMITATIONSC
The study is limited to +D$A omajiguda %ranch4L tandard )ife 'nsurance Ao )td,

tudy is limited to selected group from the main stream of the organi=ation,

ample si=e is limited to 01 respondents* Problems with confidential information,

53

 The responses would ha9e also been affected by the amount of work and working conditions,

tudy includes both collections of data from primary as well as secondary sources,

There is a high chance of sampling error,

INTRODUCTION TO PERFORMANCE APPRAISAL SYSTEM

Performance Appraisal has been around of hundreds of years* as it is only human nature to e9aluate fellow colleagues, !ffecti9e appraisal system should address clarity* openness* fairnessF recogni=e producti9ity through rewardF E be cogni=ant to appraisal leadership qualities, :Performance Appraisal is the process of e9aluating the performance E qualification of the employees in terms of the requirements of the job for

58

which he is employed* for the purpose of administration including placement* selections for promotions* pro9iding financial rewards E other action which required differential treatment among the group as distinguished from actions affecting all member equally,J BY HEYEL :Performance Appraisal determines who shall recei9e merit increase* counselCs employees their impro9ementF determines training needsF determines promo abilityF identifies those who should be transferred more o9er* it impro9es employee job performanceF encourage employees to e>press their 9iews or to seek clarification on dutiesF broadens thei6r capacity E potentialF promotes a more effecti9e utili=ation of manpower and impro9es placement F facilitates selection* reward E increase the analytical abilities of super9isors,J BY RONALD BENJAMIN

.ey to assessing an employeeCs performance is the setting of objecti9es, A key element of the performance appraisal process should be re9iewing how well the employee has performed in relation to objecti9e that has been pre9iously set for them, $or objecti9es to be useful* itCs often said they should be MA"T, pecific, Measurable,
56

 Achie9able @#ccasionally agreed between the line manager E employee?, "esult oriented, Time framed @with asset date for competition?,

NEED FOR PERFORMANCE APPRAISALC

To effect promotion based on competence and performance, To assess the training Ede9elopment needs of the employees, To bridge the gap between the e>isting performance E desired

performance, To help each employee to understand his own strengths Eweakness,

21

 They can be mechanism of increasing communication between the

employee Ehis, uper9ising officer so that each employee gets to know the difficulties of his subordinates and attempt to sol9e them, 't pro9ides legally defensible reasons for making promotion* transfer* and reward and discharge decisions, They can be instruments to pro9ide an opportunity for employees for self reflection And goal setting so that indi9idually planned and monitored de9elopment takes place, They can assist in a 9ariety of personnel decisions by generating data about each employee periodically, De9elop inter personal relationship, To help in salary increment, To pre9ent grie9ance E in4disciplinary acti9ities, Pro9ide information about the performance ranks,

ACHIE9ING ORGANIAATION GOALS

The achie9ement of an organi=ationCs goals rests with its people, The more talented the people and the better they are managed and coordinated toward those goals the greater the chance of success, Performance appraisal is all about pro9iding a way to do this,

21

The appraisal process starts with a manager and employee setting goals for the year together, The most effecti9e goals are measurable and ha9e easy to understand performance standards,

CHARACTERISTICS OF GOOD APPRAISAL SYSTEMC

'ncrease moti9ation to perform effecti9ely, 'ncrease staff self4esteem, -ain new insights into staff and super9isor, %etter clarity Edefine job function Eresponsibility,
25

 De9elop 9aluable communication among appraisal participants, !ncourage increase self /understanding among staff as well as insight

into the kind of de9elopment acti9ities that are of 9alue, Distribute rewards on a fair E credible basis, Alarify organi=ational goals so they can be more readily accepted, 'mpro9e institutional7departmental manpower planning* test 9alidation*E de9elopment of training programs,

E9ALUATION TECHNIBUEC
T$e !i< !te)! i" )e'3%'mi"* e7(&u(ti%"!
1, E!t(b&i!$ )e'3%'m("#e !t("d('d! 3%' e(#$ )%!iti%" ("d #'ite'i(

3%' e7(&u(ti%" 'n setting objecti9es to be followed by the employee to be e9aluated* the following Principles are to be met @SMART objecti9es?, pecific, Measurable, Achie9able @occasionally agreed between the line manager Eemployee, "esult orientate in a company, Times framed @with a set date for competition?,

EASTABLISH PERFORMANCE E9ALUATION POLICIES ON 6HEN TO RATE+ OFTEN TO RATE K 6HO SHOULD RATE, 6$e" t% '(teC &sually* all employee are rated on7 near the sane date in a Aompany, H%I %3te" '(teC

22

'n many companies there is one e9aluation in a year, +owe9er* more Emore organi=ation shifts to e9aluation: this is con9enient especially in fast mo9ing organi=ation* because a more frequent of the objecti9es is possible, 6$% !$%u&d '(teC These are se9eral possibilities* such as
"ating by a committee of se9eral superiors, "ating by the employees peers @co4workers?, "ating by the employees subordinates, elf4 e9aluation* but the most e9aluation is the appraisal by the

superior, ometimes a combination of the abo9e mentioned possibilities is also used,

5, H(7e '(te'! *(t$e' d(t( % em)&%yee )e'3%'m("#eC

The raters collect information by obser9ation* analysis of data E records E discussion with the employee, The data that they gather are influenced by the criteria for e9aluation E by the technique used for e9aluation,

METHODS OF PERFORMANCE APPRAISALC

There are two typesC traditional methods and modern methods,

TRADITIONAL METHODSC
'ndi9idual e9aluation methods:

2B

'ndi9idual e9aluation methods are those techniques when the standards of performance are defined indi9idually* without references to other person@s?,

GRAPHIC RATING SCALEC

's the oldest E still most used method of e9aluationO 'n case the case the rater is presented with A set of traits E is asked to rate the employee on each them, There are certain ad9antages in using methods

Ad7("t(*e!C 1, 't is easy to understand* use E permits a statistical tabulation of scores 5, The scores indicate the worth of e9ery indi9idual, 2 itCs the most common e9aluation tools in use today, Di!(d7("t(*eC
1.

'tCs arbitrary E rating is generally subjecti9e,

5, 't assumes that each characteristic is equally important for all jobs 2, The person who is making the judgments is freed from direct :quantitati9e :terms in marketing his decision of merit on any quality B, The person whom is making the judgment can makes as fine discrimination of merit as he chooses,

F%'#ed #$%i#eC 's technique when rater must choose from a set of
descripti9e statement about an employee, The method was de9eloped to
20

substitute graphic rating scales* as graphic rating scales permits to e9aluate all the employees high,

E!!(y e7(&u(ti%"C
'n which the rater is asked to describe the strong E week aspects of the employeeCs beha9ior by a super9isor, &sually* this method is used in combination with other methods, Ad7("t(*e!C !>planation will gi9e specific information about the employee and can re9el more about the super9isor, Di!(d7("t(*e!C 1, Aontains subjecti9e e9aluation, 5, "aterCs bias is easily introduced,

C'iti#(& i"#ide"t met$%dC

2D

Technique is a method according to which the rater maintains a log of beha9ioral incidents that represent either effecti9e for each employee being rated the basis of this method is the principle that there are certain significant set in each employees beha9ior Eperformance which makes all the difference between success Efailure on all jobs, $eedback is pro9ided about the incidence during performance re9iew session, The ad9antage of this method is that the results are less subjecti9e* but this method needs more time to use than the other techniques, This method has significant limitations too, (egati9e incidents are generally more noticeable than positi9e ones* the recording of the incident is the chore of the super9isors Emay be put off Eeasily forgotten the feedback may be too much at one time Eappear as a punishment etc,

C$e#:&i!t! KIei*$ted #$e#:&i!t!:

A check list is a set of objecti9es of descripti9e statements, 'f the rather belie9ers that the employee possesses a trait listed* the rater checks the itemF if not* the rater lea9es it blank, A rating score from the checklist equals the number of checks, The method was further de9eloped by gi9ing weights @from e>cellent to poor? to se9eral objecti9es,

R(":i"* met$%d!C
The case when the superior is asked to rank the subordinates based on some o9erall criterion, Ad7("t(*e!C L E(!y t% u!e, L T$e 'e&(ti7e )%!iti%" %3 e(#$ m(" i! te!ted i" te'm! %3 $i! "ume'i#(& '(":!,

P(i'ed C%m)('i!%" Met$%dC 'tCs used in case where there are se9eral subordinates to be ranked, !ach employee is paired with e9ery person to be compared with, The rater chooses as the better performing subordinate, The number of times that a
23

person is chooses as the better employee is tallied* E results are inde>ed based on this number, Ad7("t(*e!C L 't results are tabulated and a rank is assigned to each indi9idual to he7she show stands in relation to others, Di!(d7("t(*e!C L ;hen number of group is large* number of judgments becomes e>cessi9ely large, F%'#ed di!t'ibuti%" met$%dC 'tCs the method similar to grading on a cur9e, This rater is asked to rate the employees in some fi>ed distribution of categories* such as 11N in low* 51N in low a9erage* B1N in a9erage* 51Nin abo9e a9erage*11Nin high, Ad7("t(*e!C ML Attem)t! to correct raters tendency to gi9e consistency high or low ratings, L "ater cannot introduce bias or halo effect, L #9erall objecti9ely of the increases,

MODERN METHODSC
Be$(7i%'(&&y ("#$%'ed '(ti"* !#(&e! 8BARS;C

28

This method was de9eloped by smith E .endall, The %A" approach relies on the use of critical incidents to ser9e as anchor statements on a scale, A %A" rating form usually contains D to 11 specifically defined performance dimensions* each with 0 to D critical incident anchors @both positi9e E negati9e?, !mployee prefer the using of this method instead of others* as it seems that they become more committed* less tense E more satisfied than in case using other methods, %eha9ioral #bser9ation cales* de9eloped by )atham EAssociates, )ike %A" * the %# use the critical incident technique to identify a series of beha9iors that co9er he domain of the job, The major difference is that the rater should gi9e under %# how often the rate has been obser9ed engaged in the specific beha9iors identified in %# ,

A!!e!!me"t #e"te'C
'n this indi9idual from departments are brought to spend two or three days working on an indi9idual or group obser9ers rank the performance of each and e9ery participant in order of merit, ince assessment center are basically meant for e9aluating the potential of candidates to be considered for promotion* training or de9elopment* they offer an e>cellent means for conducting e9aluation processes in an objecti9e way all assesses get equal opportunity to show their talents and capabilities and secure promotion based on merit,

Hum(" Re!%u'#e A##%u"ti"*C

+uman resource accounting deals with the cost of and contribution of human resources to the organi=ation cost of the employees includes costs of manpower planning* recruitment* selection induction* placement* training
26

de9elopment* ages and benefits etc, employee contribution is the money 9alue of employee ser9ice* which can be measured by labor producti9ity or 9alue added by human resources,

6$i#$ e7(&u(ti%" te#$"iNue t% be u!edO

An e>act answer cannot be gi9en, The major problem is not with the techniques but how they are used E by whomO The responsibility of the rater E the seriousness of the rater are much more critical than which method to choose, H(7e R(te'! E7(&u(ted Em)&%yee! Pe'3%'m("#e M("(*eme"t by Ob5e#ti7e! 8MBO;C M%# is more than just an e9aluation program E process it is 9iewed as a philosophy of managerial practices a method by which managers and subordinates plan* organi=e* control* communicate and debate, %y setting objecti9e through participation or by assignment from a superior* the subordinate is pro9ided with a course to follow E a target to shoot for* while performing the job, Be"e3it! %3 MBOC An M%# system pro9ides the following benefits to the organi=ations 1? 't establishes linkage between the performance of the indi9idual E the organi=ations hence both more in the achie9ements of the same objecti9e, 5? 't becomes easy to implement because those who carry out the plans also participate in setting up these plans 2? The communication chain between E among employees E or units are clearly established facilitating information sharing, B? 't identifies performance deficiencies,

Di!#u!! t$e e7(&u(ti%" Iit$ t$e em)&%yeeC

The super9isor should hold an ele9ation inter9iew with each subordinate in order to discuss his or her appraisal E to set objecti9es for the upcoming e9aluation period, !>perts ad9ise that the employee de9elopment E salary action discussions shouldnCt occur in the same inter9iew, There are three
B1

generally used approaches to these inter9iew situationsF tell E sell* tell* E listen E problem sol9ing the using of which depends mainly of the e>perience le9el of the employee, The performance e9aluation discussions should include a? b? c? d? "e9iew of o9erall progress, Discussions of problems encountered Agreement about potential performance impro9ement possibilities, Discussion on how current performance is in line with long term career goals e? pecific action plans for the coming year, M(:e de#i!i%"! K 3i&e t$e e7(&u(ti%"C Aurrently being a decision maker* the e9aluator needs to be a really qualified person,

-ey C%m)%"e"t! %3 Pe'3%'m("#e A))'(i!(&!C The components of performance appraisal areF

'dentification of key performance areas @.PA? E target setting

through periodic discussions between each employee E their bosses, 'dentification of qualities required for the present E future jobs, elf appraisals by appraise,
B1

 Performance analysis to identify factors that ha9e facilitated E factors

that ha9e hindered performance, 'dentification of training needs, Action planning E goal setting for future, $inal assessment by the super9ising officer for administrati9e purposes, .ey performance areas* self appraisal* performance analysis* performance analysis* performance rating E counseling are the most important components of a de9elopment oriented performance appraisal system,

-ey )e'3%'m("#e ('e(!C

.PA may be defined as the important or critical categories of function to be performed by a role incumbent* o9er a gi9en period of time, These categories of functions should be so defined that the performance of any employee can be assessed meaningfully* for any gi9en period of time, 'dentifying .PACs and setting quantifiable targets where e9er possible is only one way of planning once performance, .PACs are broad categories of function to be performed by any employee in relation to his job, (ormally* .PACs can be obtain from job descriptions maintained by most organi=ations are 9ery broad E sketchy, !9en if they are supply to new incumbents of any job* they may not be able to get a complete picture, +ence itCs desirable to ha9e Periodic e>ercise in identifying performance areas for each person in relation to his role,

Se&3 D A))'(i!(&C
elf /appraisal has an important role to play in employee de9elopment, The indi9idual is not likely to learn E de9elop himself he is interested in his own learning E de9elopment and makes conscious efforts to de9elop, uch effort would include identifying possible direction of growth* e>periencing growth through action* re9iew E reflection to consciously monitor the growth,

B5

elf /appraisal is not meant to be ritualistic form filling e>ercise, 't is a significant initial step for performance de9elopment, elf appraisal should start at end of the performance period just before performance re9iew decision take place, elf4 appraisal should start with the appraise taking up his .PACs E objecti9e for the period that was o9er E reflecting about his achie9ements,

Pe'3%'m("#e #%u"!e&i"*:
Performance counseling can be defined as the help pro9ided by a manager to his subordinates in analy=ing their performance and other job beha9iors in order to increase their job effecti9eness, 't focuses on the analysis of the performance on the job and identification of training needs for further impro9ement, 't focuses on the entire performance during a particular period rather than on specific problem, Aounseling is a dyadic process, 'tCs based on the relation between two persons* a manager who is pro9iding help or who is counseling E an employee to whom such help is gi9en or who is a counselee,

Ob5e#ti7e %3 #%u"!e&i"*:
Aounseling aims at de9elopment of the counselee, 't in9ol9es the following: !ncouraging him to set goals for the future impro9ement, +elping him understand himself* his strengths E weakness, +elping him to de9elop 9arious action plans for further impro9ement, +elping him to reali=e his potential as a manager,
B2

 +elping him understand himself* his strengths E weaknesses, +elping him to re9iew in a non threatening way* in order to help him in his problem* in achie9ing 9arious objecti9es, The system of A" has two principal objecti9es E the reporting officer has a 9ery clear perspecti9e of these objecti9es, To assess truly the performance of the subordinates in his present job pro9iding guidance E counseling to him to impro9e his performance, To assess his potential E to prepare him through appropriate feedback guidance for higher responsibilities

Su##e!! %3 t$e 'e)%'ti"* !y!tem de)e"d! %" t$e 3%&&%Ii"* )'i"#i)&e!C

Absolute objecti9ity of the assessor @s?, Two way communication between the reporter E the reporting officer, A true and objecti9e assessment of the related performance E fitness to take up higher responsibilities, ubsequent follow /up action, hould be aimed at impro9ing the performance of the employees, The superior officer has to gi9e subordinate a clear understanding of the task to be performed E the subordinates required to the best of his capacity to the quantitati9e E qualitati9e achie9ements of the gi9en tasks making optimum use of the resources a9ailable, Also* both the superior E his subordinate are aware of the ultimate goal of their organi=ation* which can be achie9ed only through joint effort by both of them,

F(#t%'! i"3&ue"#i"* )e'3%'m("#e %3 (" em)&%yeeC

'ntelligence, 'ntegrity and dependability,

BB

Alarity of objecti9es, Aontribution to team work, Public relation, Data management, Attitude, 'nitiati9e and original thinking, Areati9ity and accuracy, Guality of work and quality of output, .nowledge of job, Acceptance of responsibility, De9elopment of subordinates, "isk4Taking, Delegating,

A9ANTAGES OF PERFORMANCE APPRAISALC

Performance appraisal system can be put to se9eral uses con9erting the entire spectrum of human resource function in the organi=ation, The uses which performance appraisal ser9es are:

B0

 To take decision on termination, Diagnosing indi9idual and organi=ational problem, To identify indi9iduals with high potential, ystematic efforts to tone up performance results* correcti9e actions and appropriate feedback,

'nput for an array of professional decision such as placement* promotion* transfer* and reward,

P%te"ti(& )'%b&em! I$i&e #%"du#ti"* )e'3%'m("#e ())'(i!(&C

1, O))%!iti%" t% e7(&u(ti%"P most employees are wary of

performance e9aluation, The most common fear is that of rater subjecti9ity, 5, Sy!tem de!i*" K %)e'(ti"* )'%b&emP 'f the criteria of e9aluation are poor* the technique used cumbersome* or the system is more from than substance* the design is blamed E the e9aluation is worth nothing,

R(te' )'%b&emP The rater problem such as:

P'%b&em Iit$ !t("d('d %3 e7(&u(ti%"P ;hich arises due to

the perceptual difference in the meaning of the words use to e9aluate employeesO

BD

 T$e H(&% E33e#tP 't occurs when the rater assigns on se9eral

dimensions of performed based on an o9erall* general impression of the rate,

Time %' e7e"t e''%'P "aters forget more about past beha9ior

than beha9ior,
Pe'!%"(& Bi(! E''%'P The tendency to rate the preferred

employees higher E those not preferred lower,

Em)&%yeeJ! )'%b&em Iit$ )e'3%'m("#e e7(&u(ti%"P The

most common problem is that employees may feel that the e9aluations are unfair, 'n order to a9oid this perception* it should be presented how difficult is the e9aluation of employees, The self e9aluation can be good method in achie9ing this aim,
Ce"t'(& te"de"#y e''%'P The tendency of the raters to assign

a9erage ratings for all the dimensions,

SAMPLINGC
ampling: ampling may be defined as the selection of some part of an aggregate or totality on the basis of which a judgment or inference about the

B3

aggregate or totality is made, 'n other words* it is the process of obtaining information about an entire population only a part of it,

S(m)&i"* u!ed i" #u''e"t !u'7eyC This method is called as chunk sampling, A chunk is a fraction of one population taken for in9estigation because of its con9enient a9ailability, A sample from obtained from readily a9ailable list* such as telephone directories or automobile registrations or credit card members is a con9enience sample, These are some times called accidental samples because those entering in to the sample enter by accident* they just happen to be a right place and at the right time of data collection,

B8

90 80 70 60 50 40 30 20 10 0 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

DATA ANALYSIS INTERPRETATION

AND

1, Are you aware about the organi=ation performance appraisal systemO

B6

a? <!

b? (#

OPINION YES NO TOTAL

NO, OF RESPONDENTS @0 0 @0

PERCENTAGE .00 0 .00

YES NO

$rom the abo9e it is e9ident that 111N of the employees feel that performance appraisal is quit essential for any organi=ation,

5, Do1 you think that performance appraisal is essentialO

01

a? <!

b?

(#

OPINION YES NO TOTAL

NO,OF RESPONDENTS ?8 / @0

PERCENTAGE 1 ? .00

YES NO

01

$rom the abo9e data it is e9ident that 6DN of the respondents feel that performance appraisal is 9ery essential in the organi=ation* where as B0 employees feel it is not essential in organi=ation,

2, Does appraisal system of your organi=ation facilities career growth E learningO a? <! OPINION <! (# T#TA) b? (# NO,OF RESPONDENT ?/ 8 @0 PERCENTAGE 8? . .00

YES NO

05

$rom the abo9e data it shows that 8BN of employees feel that organi=ation facilitate growth E learning due to performance appraisal* where as 1DN of employees feel that organi=ation does not pro9ides growth E learning of employees,

OPINION YES NO TOTAL

NO,OF RESPONDENTS ? ? @0

PERCENTAGE 1/ 8 .00

B, Performance appraisal system really assesses the quality of an employee, Do you agreeO a? <! b? (#

02

YES NO

$rom the abo9e data it is e9ident that 65N of the employees feel that the performance appraisal system really assesses the quality of an employee* where as 80 feel that it does not assesses the quality of an employee,

0, Periodicity of performance appraisal should be on a? Guarterly basis c? Annual basis b? +alf4yearly basis

0B

OPINION A B C TOTAL

NO,OF RESPONNDENTS 8 ./ 20 @0

PERCENTAGE . /? 0 .00

A B C

$rom the abo9e data it is e9ident that D1Nof the employees feel that performance appraisal should be done on annual basis E 5BN of the employees feel should be in done on half yearly basis 1D0 of the employees feel should be done in quarterly basis,

D, The present performance appraisal of your organi=ation distinguishes the performers E non performersO a? trongly agree c? Disagree b? Agree d? trongly disagree

00

OPINION A B C D TOTAL

NO,OF RESPONDENTS @ 2> 8 0 @0

PERCENTAGE .0 >? . 0 .00

A B C D

$rom the abo9e data it is e9ident that 3BN of the employees HagreeC that performance appraisal system of the organi=ation distinguishes performs E non performers* where as 110 strongly agree and 1DN disagree doesnCt distinguishes performers E non4performers, 3, The periodical performance appraisal of employee is required for maintaining efficiencu of indi9idual 3 organi=ationO a? <! OPINION YES b? (# NO,OF RESPONDENTS ?8 PERCENTAGE 1

0D

NO TOTAL

/ @0

? .00

YES NO

$rom the abo9e it shows that 6DN of the employees feel that periodic performance appraisal of the employee is required for maintaining efficiency of indi9idual and organi=ation and abo9e BN of the employees feel that it is not required to maintained,

8, Are you aware of the basis or attributes on which your performance is appraisedO a? <! b? (#

03

OPINION YES NO TOTAL

NO,OF RESPONDENTS ?. 1 @0

PERCENTAGE 8/ . .00

YES NO

$rom them abo9e data it shows that 85N of the employees are aware on which their performance is appraised but 1DN of the respondents feel that they are not aware of the basis on which their performance is appraised,

6, Performance appraisal is based upon a? eniority influence OPINION b? Performance d? %oth a E b c? "ecommendations E Trade &nion

NO,OF RESPONDENTS

PERCENTAGE

08

A B C D TOTAL

/ /> 2 .8 @0

? @?

2 .00

A B C D

$rom the abo9e data it shows that 0BN of the employees feel that performance appraisal in railways is based upon performance 2DN feel that it based on both performance and recommendation 3 trade union,

11, Performance appraisal is useful to the contributor to encourage people to perform better on their jobsO a? <! b? (# NO,OF RESPONDENTS
06

OPINION

PERCENTAGE

YES NO TOTAL

? ? @0

1/ 8 .00

YES NO

$rom the abo9e data it shows that 65Nof the employees feel that performance appraisal is contributor to encourage better job* but 8N of the employees feel that it is not a contributor for job,

11, The appraisal system is helping each employee to disco9er his7her potential E make their short comingsO a? Agree c? b? Disagree c? trongly Agree

trongly Disagree

D1

OPINION A B C D TOTAL

NO,OF RESPONDENTS 28

PERCENTAGE > ./

@ . @0

.0 / .00

A B C D

$rom the abo9e data it shows that 3DN of the employees feel that appraisal system disco9ers potential and make their short comings and 150 employees feel that it does not disco9er potential,

15, The present performance appraisal of your organi=ation assesses indi9idual beha9ior* discipline* integration* communication skill* leadership qualities E growthO a? Agree d? b? Disagree c? trongly Agree

trongly Disagree

D1

OPINION A C C D TOTAL

NO,OF RESPONDENTS 21 @ ? / @0

PERCENTAGE >8 .1 8 ? .00

A B C D

$rom the abo9e data it shows that 38N of the employees agrees with the abo9e statement and 11N disagree,

12, +ow do you want tour performance to be communicated to youO a? ;ritten $orm d? (o (eed b? #ral $orm c? #pen Aommunication

D5

OPINION A B C D TOTAL

NO,OF RESPONDENTS 20 .0 ?

PERCENTAGE 0 /0 8 ./

@0

.00

A B C D

$rom the abo9e data it is e9ident that most of the employees feel that their performance should be communicated to them in a written form,

1B, ;hat kind of counseling should occur in an organi=ationO a? $ormal OIPINION b? 'nformal NO,OF RESPONDENTS PERCENTAGE

D2

YES NO TOTAL

/1 /. @0

@8 ?/ .00

YES NO

$rom the abo9e data itCs e9ident that 08N feel of the employees feel that counseling in an organi=ation should be of formal kind and B5N of employees feel counseling should of informal kind,

10, According to you* Aounseling is a a? c? $ormality b? 'dentifies trength E ;eakness of the employee

To know the areas of need for de9elopment NO,OF RESPONDENTS

DB

OPINION

PERCENTAGE

A B C TOTAL

./ .0 /8 @0

/? /0 @ .00

A B C

$rom the abo9e data itCs e9ident that 0DN of the employees feel that counseling is used to know the areas of de9elopment and 5B0 feel that it is just a formality and 51N feel that it identifies the strength E weakness of the employees,

1D, +ow often did you speak* or discuss about your performance with your superiorsO a? d? $requently (e9er b? ometimes c? "arely

D0

OPINION A B C D TOTAL

NO,OF RESPONDENTS . .1 1

PERCENTAGE 2/ 28 .8 ./

@0

.00

a ! d

$rom the abo9e data itCs e9ident that 28N of the employees said that they sometimes and 25N frequently speak with their superiors about performance,

13, Training E de9elopment programs impro9e the quality of the employeesO a? Agree d? b? Disagree c? trongly agree

trongly disagree

DD

OPINION A B C D TOTAL

NO,OF RESPONDENTS /@ 0 /@ 0 @0

PERCENTAGE @0 0 @0 0 .00

A"ree D#sa"ree Stron"$% A"ree Stron"$% D#sa"ree

$rom the abo9e data itCs e9ident that 01N of the employees are strongly agree and 01N agree that training E de9elopment the quality of the employees in the organi=ation,

18, +as your performance increased as a result of performance apPpraisal system,O a? d? To a large e>tent (ot at all b? Moderate e>tent c? )ess e>tent

D3

OPINION A B C D TOTAL

NO,OF RESPONDENTS . 2/ . . @0

PERCENTAGE 2/ ? / / .00

&ar"e e'tent (oderate e'tent &ess e'tent Not at a$$

$rom the abo9e data itCs e9ident that DBN of the employees are feel that to moderate e>tent and 25N to large e>tent think that performance increased as a result of performance appraisal system,

FINDINGS AND SUGGESTION: Findings:

D8

 't has been found that most of the employees think that the

performance appraisal is essential and they think it is used as a tool to impro9e performance* to determine organi=ation needs* and to basis for pay increase* promotions* and transfer, The appraisal system facilitates growth E learning of employees and it is used to distinguish performers, The e>isting appraisal system helps the management to identify potentiality of employees as well as useful for maintaining efficiency of the indi9idual E organi=ation, ome employees that they do not know which basis their performance is appraised and most of the employees feel that it help them disco9er their potential and enables to know their short coming, #rgani=ation pro9ides training E de9elopment programs to o9ercome the short comings identified in performance appraisal, The employees that their promotions match their contributions and new performance appraisal technique should be adopted in the organi=ation and the short comings are informed to them, The performance appraisal supports to e>periment with new ideas as basis for promotion,

Suggestion:
The performance appraisal system should facilitate career growth E

learning of employees, The short coming of employees should be informed to them after performance appraisal, Promotion should be based on performance rather than seniority or any
D6

other factors, Performance appraisal should be appraised by granting awards7 merit certificate, (ew performance appraisal techniques such as 2D1 degree performance appraisal system should be used, The performance appraisal should not be assessed by biased mind and personal grudge, $eedback should not be gi9en to the employees more frequently,

#n what basis performance appraisal should be informed to the employees, The e>tent of communication with the top E middle le9el management, The feedback to performance appraisal shouldnCt only be gi9en to those employees who are rated Hbelow a9erageC but also to all the employees as is would moti9ate the employees to perform e9en better, -auge the potential for performance of each employee,

BUESTIONNAIRE FOR A STUDY PERFORMANCE APPRAISAL SYSTEM,

., Are you aware about the organi=ation Performance AppraisalO a? <es b? (o
31

ON

/, Do you think that Performance Appraisal is essentialO a? <es b? (o

2, Does Appraisal ystem of your organi=ation facilities career -rowth E )earning of employeesO B, Performance Appraisal ystem really assesses the quality of an employee, Do you agreeO a? <es b? (o

0, Periodicity of Performance Appraisal should be on a? Guarterly c? Annual basis D, The present Performance Appraisal of your organi=ation distinguishes the performer E non performersO a? c? trongly agree Disagree b? Agree d? trongly disagree b? +alf4yearly basis

3, The Periodical Performance Appraisal of employee is required for maintaining efficiency of indi9idual E organi=ationO a? <es b? (o

8, Performance Appraisal in "ailways is based upon

31

a? c?

eniority

b?

Performance d? %oth a E b

"ecommendation E Trade &nion influence

6, The Performance Appraisal of your organi=ation assesses 'ndi9idual %eha9ior* Discipline* integration* Aommunication kill* )eadership Gualities E -rowthO a? d? Agree trongly Disagree b? Disagree c? trongly Agree

11, +ope do you want your performance to be communicated to youO a? c? ;ritten $orm b? #ral $rom (o (eed

#pen Aommunication d?

11, Does the organi=ation pro9ide training E de9elopment programsO a? <es b? (o

15, Training E De9elopment programs impro9e the quality of the employeesO a? <es b? (o

BIBILOGRAPHYC
Da9is* .eith, :+uman %eha9ior at ;orkJ*

ingapore, +ill

'nternational %ook coF 1686,

35

 !ssential of +"M and 'ndustrial "elations4 P, ubba "ao,

+"M4 A,%, Mamoria and +ouse,

,L -ankar4 +imalaya Publishing

:A+, ParamanandaJ* Article on Performance Management, :A%A ManagerCs PrimerJ* :An !>ecuti9e -uideJ* Acti9ity %ased Aost ManagementJ* by :-ary AokinsJ,
"obert %ascal :Performance ManagementJ to help Aompanies*

'mpro9e their Performance Management ystems,

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3B

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3D

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