CHAPTER -1 INTRODUCTION

PERFORMANCE APPRAISAL

INTRODUCTION The history of performance appraisal is quite brief. Appraisal techniques are said to have been used for the first time during the First World War , when , at the instance of Walter dill Scott, the US army adopted the man to man rating system for evaluating military personnel. During the 1920-30 period, relational wage structure for hourly paid workers were adopted in industrial units. Under this system, the policy of giving grade wage increments on the basis of merit was accepted. These early employee plans were called merit rating program, which continued to be so called up to the mid fifties. By, then most of these plans were of the rating scale type, where emphasis was given to factors, degrees and points. In the early fifties, however, attention began to be devoted to the performance appraisal of technical, professional and managerial personnel. Since, then, as a result of experiments and as great deal of study, the philosophy of performance appraisal has undergone tremendous changes. Consequently, a change has also taken place in the terminology used. Now, the older phrase merit rating is largely restricted to the rating of hourly paid employees and is used frequently in developing criteria for salary adjustments, promotions, transfers, etc. the later phrase, personal appraisal places emphasizes on the development of the individual as and widely used to evaluate technical, professional and managerial personnel. The appraisal of individuals in an employment has been labeled and described by experts over the years in different ways. Common descriptions include performance appraisal, merit rating, behavioral assessment, employee evaluation, personal review progress report, staff assessment, and service rating and fitness report. Some personnel authorities use such concepts interchangeably, while others interpret some of these appraisal phrases differently. However, the term performance appraisal or evaluation is most widely used.

Employees want promotions, they want a raise in their salary, they want good working conditions, they would like to be placed in prestigious positions and would like to be transferred to places of their choice and like jobs giving them maximum satisfaction, and so on. Therefore, if employees get what they want they should give their bosses what they ask. Performance Appraisal is one mechanism to make sure that people at every level do things the way their bosses want them to do. Performance Appraisal is the step where the management finds out how effective it has been at hiring and placing employees. If any problems are identified, steps are taken to communicate with the employees. If any problems are identified, steps are taken to communicate with the employees and to remedy them A Performance Appraisal is a process of evaluating an employees performance of job in terms of its requirements. Heyel observes; it is the process of evaluating the performance and qualification of the employees in terms of the requirements of the job for which he is employed, for purposes of administration including placement, selection for promotion, providing financial rewards and other actions which require differential treatment among the members of a group as distinguished from actions affecting members equally. Others regard it as a process of estimating or judging the value, excellence, quality or status of some object, person or thing. Individually and collectively, it is a part of all the other staffing processes viz., recruitment, selection, placement and induction

Prof. Beach has provided a useful chart, showing the changes in the terminology of employee appraisal, which have taken place since 1920.

Earlier emphasis Terminology Purpose Merit rating Determining

Present emphasis Employees appraisal /

performance appraisal qualifications Development of personnel, job, and providing emotional security Technical, professional and managerial personnel

for wage increase, transfer, improved performance on the promotion, and layoff. Application Hourly paid workers

Factors rated

Heavy emphasis on personal Results, attributes

accomplishments,

performance scales, statistical Mutual goal setting, critical group appraisal, performance standards, less quantitative.

Techniques

Rating

manipulation

of data for incidents,

comparison purpose

Post appraisal

Superior communicates his Superior

stimulates

rating to employee and tries employees to analyze himself to sell his evaluation to him; and set own objectives in line seeks to have employee with superior counselor. job is requirements; helper and conform to his view

MEANING AND DEFINITIONS OF PERFORMANCE APPRAISAL:

Performance Appraisal is a method of evaluating the behavior of employees in the work spot, normally including both the quantitative and qualitative aspects of job performance. Appraisal is the evaluation of worth, quality of merit. In the organizational context performance appraisal is a systematic evaluation of personnel by supervisors or others familiar with their performance. Performance here refers to the degree of accomplishment of the tasks that makeup individuals job. Thus performance appraisal means evaluating how well an individual I fulfilling the job demands. A formal definition of performance appraisal by Heyel is as follows performance appraisal is the process of evaluating the performance and qualifications of the employees in terms of the requirements of the job foe which he is employed, for the purpose of administration including placements, selection for promotion, providing financial rewards and other actions which require differential treatment among the members of a group as distinguished from actions affecting all members equally. Performance appraisal is the systematic evaluation of the individual with regard to his or her performance on the job and his potential for development. - Beach Performance appraisal is the process of estimating or judging the value, excellence, qualities or status of some object, person or thing. Scott

PERFORMANCE APPRAISAL PROCESS

To design a performance appraisal system in an organization, the following steps are followed.

ESTBLISH PERFORMANCE STANDARDS

COMMUNICATE PERFORMANCE EXPECTATION TO EMPLOYEES

MEASURE ACTUAL PERFORMANCE

COMPARE ACTUAL PERFORMACE WITH THE STANDARDS

DISCUSS THE APPRAISAL WITH THE EMPLOYEE

IF NECESSARY ,INITIATE CORRECTIVE ACTION

METHODS OF PERFORMANCE APPRAISAL

METHODS OF PERFORMANCE APPRAISAL

Traditional Methods

Modern Methods

1. Straight ranking method

1. Behaviorally Anchored 2. Assessment Centre.

2. Man to man comparison method

3. Grading

4. Graphic rating scale 5. Forced choice distribution method 6. Forced distribution method
7. Checklist Methods: a) Simple Checklist b) Weighted Checklist

3. Human Resource Accounting. 4. Management by Objectives. 5. Psychological Appraisal.

c) Critical incident method 1. Essay of Free Form Appraisal. 2. Critical incidents 3. Group appraisal 4. Field review method
5. Paired comparison method.

TRADITIONAL METHODS: STRAIGHT RATING METHOD:

It is the oldest and simplest of performance appraisal, by which the man and his performance are considered as an entity by the rater. No attempt is made to fractionalize the rater or his performance, the Whole man is compared with the whole man, and the ranking of a man in the work group is done against that of another. The greatest limitation of this method is that in practice it is very difficult to compare a single individual with human beings having behavior traits. PAIRED COMPARISON TECHNIQUE: By this technique each employee is compared every trait with all the other persons in pairs at a time. With this technique, judgment is easier and simpler than with the ordinary ranking method. The number of times each individual is compared with another is tallied on a piece paper. These numbers yield the rank order of the entire group. MAN-TO-MAN COMPARISON METHOD: The USA army used this technique during the First World War By this method, certain factors are selected for the purpose of analysis and a scale is designed by the rater for each factor. A scale of man is also created for each factor. The each man to be rated is compared with the man in the scale, and certain scores for each factor comparison method. GRADING METHOD: Under this system, the rater considers certain features and marks them accordingly to a scale. Certain categories of worth are first established and carefully defined. They may be graded as A-Outstanding; B-Very Good; C-Good or Average; D-Poor. The actual performance of an employee is then compared with these grade definitions, and he is allotted the grade which best describes his performance.

GRAPHIC OR LINEAR RATING SCALE: This is the most commonly used method of performance appraisal. Under it, a printed form, one for each person to be rated. The employed traits are categorized into employee

contribution and employee characteristics. These traits are then evaluated on a continuous scale, wherein the rater places a mark along the continuum. FORCED CHOICE DESCRIPTION METHOD: This method was evolved after a great deal of research conducted for military services during World War II. It attempts to correct a raters tendency to give consistently high or consistently low rating to all employees. The use of this method calls for objective reporting and minimum subjective judgment. Finally, the results of evaluation do not prove useful for counseling and training purposes because the rate is ignorant of how he is evaluation the individual. FORCED DISTRIBUTION METHOD: Joseph Tiffin evolved this method after statistical work. This system is used to eliminate or minimize raters bias, so that all personnel may not be placed at the higher end or at lower end of the scale. It requires the rater to appraise an employee according to a predetermined distribution scale. For this purposes, a five-point performance scale is used without any descriptive statement. Employees are placed between the two extremes of good and bad job performances. CRITICAL INCIDENT METHOD: This method was developed following research conducted by the armed forces in the United States during World War II. The essence of this system is that it attempts to measure workers performance in terms of certain events or episodes that occur in the performance of the raters job. These events are known as critical incidents.The basis of this method is the principle that There are certain significant acts in each employees behavior and performance which make all the difference between success and failure on the job.

GROUP APPRAISAL METHOD: Under this method, an appraisal group rates employees. consisting of their supervisor and three or four other supervisors who have some knowledge of their performance. The superior explains to the group the nature of his subordinate duties. The group then discusses
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the standards of performance of that job, the actual performance of the jobholder, and the causes of their particular level of performance and suggestions for future improvements. FIELD REVIEW METHOD: In this method, a trainer employee from the personnel department interviews supervisors to evaluate their respective subordinates. The appraiser is fully equipped with definite test questions. The questions are asked and answered verbally. The appraiser takes detailed notes of the answers which are then approved by the supervisor and placed in employees personal folder. The success of this system depends on the competence of the interviewer. The overall rating is obtained by three ways categorization such as outstanding, Satisfactory, and Unsatisfactory. The main defect is that it keeps two management representatives busy with the appraisal. 1. MODERN METHODS OF APPRAISAL: Behaviorally anchored rating scales (BARS): An appraisal method that aims at combining the benefits of narrative critical incident and qualified scale with specific narrative example of good and poor performance. DEVELOPING BARS TYPICALLY REQUIRES FIVE STEPS. Generate critical incidents persons who know the job being appraised (job holders/ supervisors) are asked to describe specific illustrations (critical incidents) of effective and ineffective performance. Develop performance dimension- these people then cluster the incidents in to a similar set of performance dimension(say , five to ten) each cluster ( dimension) is then defined .
Scale the incidents- this second group is generally asked to rate the behavior

described in the incident as to how effectively or ineffectively it represents performance on the appropriate dimension (seven or line point scales are typical). 1. ASSESSMENT CENTERS: In this approach individuals from various departments are brought together to spend two or three days, working on an individual or group assignment similar to the ones they would be handling when promoted. Observers rank the performance of each and every participant in order of merit.
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2. HUMAN RESOURCE ACCOUNTING: It deals with cost of and contribution of human resource to the organization. Cost of employee includes cost of manpower planning, recruitment, selection, induction, placement, training, development, wages and benefits etc. employee contribution is the money value of employee service which can be measured by labor productivity or value added by human resources. Cost of HR may be taken as standard. Employee performance can be measured in terms of employee contribution to the organization. 3. MANAGEMENT BY OBJECTIVES (MBO): Management by objectives involves setting specific measurable goals with each employee and then periodically reviewing the progress made. It is a joint goal setting process involving both superior and subordinates. IT CONSISTS OF SIX MAIN STEPS. Set the organizational goal. Establish an organization wide plan for next period and set goals. Set departmental goals. Here department heads and their superiors jointly set goals for their departments. Discuss departmental goals. Department heads discuss the departments goals with all subordinates in the department (often at a department wide meeting) and ask them to develop their individual goals. Define expected results (set individual goals). Here department heads and their subordinates set short- term performance targets.

IMPORTANCE OF PERFORMANCE APPRAISAL

Give an employees feedback on performance.

Identify employee training needs. Document criteria used to allocate organizational rewards
From a basis for personal decision salary increases promotions, disciplinary actions

and business
Provide the opportunity for organization diagnosis and development. 11

 Facilitate communication between employee and administrator.

To compare the past system for performance appraisal with the new performance

management system in order to identify the drawback that are overcome by the new system of performance that is PMS(PERFORMANCE MANGEMENT SYSTEM)
To conduct the study on the step wise method involved in apprising the performance

in the PMS
To find out the satisfaction level of the employees and areas in which they are not

comfortable with the PMS and does not find it to be effective.

To find out to what extent the employees find is method effective in appraising their

performance
Is there any improvement in their performance after the appraisal.

NEED OF THE STUDY

The find out the satisfaction level of the employees and areas in which they are not comfortable with the performance appraisal and do not find it to be effective. THE EMPLOYEES find is method effective in appraising their performance. Is there any improvement in their performance after the appraisal? The study the effectiveness of the new performance appraisal system.

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The APSRTC is facing several managerial problems. Firstly due to lack of scientific manpower planning, it has recruited more number of employees at the all levels than its requirements. Secondly, due to lack of proper training to the personnel in their field they are not able to perform satisfactorily. Thirdly, the increasing interferences from the State Government in the affairs of the corporation. Fourthly, due to lack of financial autonomy to the corporation it has to take prior approval of the state Government, which is very time consuming procedure. Fifthly, the APSRTC is incurring heavy losses, due to unwillingness on the part of the State Government to increase the bus fares to cover the increased cost of inputs. Despite the best efforts of the senior level officials and employees, the corporation is derided as a losing public undertaking because of certain exogenous facts beyond its control. This is gross injustice to an institution, which is striving hard and achieving efficiency in its operations of services. Hence this stupendous issue deserves to be probed into in a detailed way so as to arrive at and identify the measures required for strengthening this organization for the overall good of the people and the State of Andhra Pradesh.

SCOPE OF THE STUDY

The present study is an attempt at gaining a birds eye view of the Performance Appraisal system of APSRTC. Emphasis has been laid upon the Supervisory Cadre Performance Appraisal system of the APSRTC employees. The sample size limited to 70 keeping in view the enormity and size of the organization with respect to period of study.

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 This study is aimed at analyzing current trends in the Performance Appraisal system and their influences on the implementation of an appropriate system to suit to the needs of the organization. An individual who is told that he or she is doing very well on three dimensions but needs to improve on a fourth dimension recognizes how managers see her or him and knows where to allocate additional developmental work and effort in the future. Finally, performance appraisal provides valuable and useful information to the organizations human resource planning process.

OBJECTIVES OF THE STUDY

Objectives:
To find out the loopholes in the functioning of APSRTC. To examine the effectiveness of the corporations organizational setup. To examine the manpower planning strategies adopted by APSRTC at Head Quarters

and district level offices.

To examine the procedures and practices of human resource management at the

district levels.
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 To analyze the steps taken by the corporation for the development of professional

competence of the employees.

To suggest variable measures for strengthening the corporation. To find out to what extent the employees find is method effective in appraising there

performance. Is there any improvement in their performance after the appraisal. To study the effectiveness of the Performance Management System (PMS).

LIMITATIONS OF THE STUDY

Limitations: Though performance appraisal is a very useful technique, it suffers from serious limitations too. Some of its limitations are as follows: Though it is a useful technique of efficiency rating, there are certain personal characteristics which cannot be expressed either in figures or in any measures.
However, systematic and objective system of performance appraisal is used in the

organization, it is impossible to eliminate personal and subjective element from it.

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 Generally there is a presence of a Halo effect which leads to a tendency to rate the same individual first which one has stood first. Study has been confined to a period of 45 days only.
Hence it neither may not reveal exact opinion of all employees.

The analysis based purely on sampling technique & Mathematical manipulation. They are unable to maintain a fair distinction between two individuals sometimes the results of performance appraisal are not confirmed by other techniques.

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CHAPTER 2 RESEARCH METHODOLOGY

RESEARCH METHODLOGY
Research is a systematic method of finding solutions to problems. It is essentially an investigation, a recording and an analysis of evidence for the purpose of gaining knowledge. According to Clifford woody, research comprises of defining and redefining problem, formulating hypothesis or suggested solutions, collecting, organizing and evaluating data, reaching conclusions, testing conclusions to determine whether they fit the formulated hypothesis. Sampling Design

A sample design is a finite plan for obtaining a sample from a given population. Simple random sampling is used for this study.
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Sample Size

Number of the sampling units selected from the population is called the size of the sample. Sample of 90 respondents were obtained from the population. Sampling Procedure

The procedure adopted in the present study is probability sampling, which is also known as chance sampling. Under this sampling design, every item of the frame has an equal chance of inclusion in the sample.

METHODS OF DATA COLLECTION. The datas were collected through Primary and secondary sources. Primary Sources: Primary data are in the form of raw material to which statistical methods are applied for the purpose of analysis and interpretations. The primary sources are discussion with employees, datas collected through questionnaire. Secondary Sources: The secondary data mainly consists of data and information collected from records, company websites and also discussion with the management of the organization. Secondary data was also collected from journals, magazines and books.

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REVIEW OF LITERATURE
HUMAN RESOURCE MANAGEMENT HRM is managing (planning, organizing, directing organizing and controlling) the function of employing, developing and compensating human resources resulting in creating and developing human relation and utilization of human resources with a view to contribute proportionately to the organization, social goals. PERFORMANCE APPRISAL AND HUMAN RESOURCE MANAGEMENT Effectiveness of performance appraisal systems depends on how well the data generated by the system is utilized and to what extent the employees see the data being utilized. Appraisal data can be applied for development decision as well as for HR management the following decision could be made on the basis of appraisal data. 1)Evaluation decision: Evaluation decision are concerned with such issues as promotions, transfers, terminations and salary increases, when these decisions are made on the basis of performance criteria, as opposed to some other basis, such as seniority, a performance appraisal system is necessary. Management can checks various individual characteristics, such as education mathematical ability, mechanical ability verbal ability mechanical ability, and achievement

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ability to see nonperformance rewarding is a very controversial issue in organization life to how closely they are related performance. 2) Performance rewards: performance rewarding is a very controversial issue in

organization lift to which many chief executives do not pay enough attention. People are likely to work harder if they feel that effort will be recognized by their superiors and hat they will be rewarded. Particularly in manufacturing and service organization, productivity depends largely on the effort put in by employees, thus, making rewarding performance very crucial.

3) Change of responsibilities and status: some organizations reward their employees by assigning them higher level responsibilities. The head of a department may delegate more powers and authority to a high-performing employee. A salesman may get a larger area of coverage for more prestigious area for his operations or new products that are generally given to a competent salesman. There are many such mechanisms by which the contributions of an employee can be recognized. Such forms of rewarding generally have high motivational value. Basic factors of HRM in Performance Appraisal It is said that performance appraisal is an investment for the company which can be justified by following advantages Promotion: Performance Appraisal helps the supervisors to chalk out the promotion programmer for efficient employees. In this regards, inefficient workers can be dismissed or demoted in case. 1. Compensation: Performance appraisal helps in chalking out compensation packages for employees. Merit rating is through performance appraisal. Performance Appraisal tries to give worth to a performance. A compensation package which includes bonus, high salary rates, extra benefits, allowances and pre-requisites are dependent on performance appeaisal. The criteria should be merit rather than seniority.

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2. Employee development: The systematic procedure procedure of performance appraisal

helps the supervisors to frame training policies and programmes. It helps to analyse strengths and weaknesses of employees so that new jobs can be designed for efficient employee. It also helps in framing future development programmes.
3. Selection validation: The appraiser may be any person who has thorough knowledge about

the job content, contents to be appraised, standards of contents, and who observes the employee while performing a job. The appraiser should be capable of determining what is more important and what is relatively less important. He should prepare reports and make judgment without bias. Typical appraisers are: Supervisor, Peers, Subordinates, Employees themselves, Users of Service and Consultants. Performance appraisal by all these called Performance Appraisal.

4) Communication: Supervisors include superiors of the employee, other supervisors having

knowledge about the work of the employee and department head or manager.The concept of having superiors rated by subordinates is being used in most organizations today, especially in developed countries In many organizations this is a standard approach. The boss as an observer can objectively identify the strengths and weaknesses and help the subordinate in his/her development. The strength of his approach is that the boss is the person who is observing the person from the closest quarter and is in the best position to provide feedback. The weakness lies in the fact that the boss also evaluates and gives rewards/punishments. To that extent the feedback may or may not be taken in the right spirit. Further, providing that extent the feedback is a skill as well as an attitude, several bosses are not trained and hence may not do an effective job of providing feedback. All the above factors ensure effective communication. 5) Motivation: Performance appraisal serves as a motivation tool. In several organizations the final say in deciding the performance of employees is with the department head/bosss boss. The strength of this Approach is that it brings in parity in to ratings across employees as
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the department head can demonstrate a helicopter vision due to the position he/she is in. the disadvantage is in many cases the department head/bosss boss may actually not have enough information about the employee and may rely upon hearsay information.

CHAPTER 3 ORGANIZATION PROFILE

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THE ORGANIZATION PROFILE: The origin of APSRTC dates back to June 15th, 1932, when the passenger Road Transport was started in the Nizams State Railways Telangana area with the modest fleet of 27 buses, each having a seating capacity of 24 and 166 employees with a capital investment of Rs.3.93 lakes. In 1936, a full fledged Department, popularly know as Nizams State Road Railway Transport Department was formed. After the integration of Nizams State with the Indian union in 1950, the Nizams State Railways was integrated with the Indian Railways. The RTD of Nizams state Railways was therefore separated from 1-10-1950. The Indian Railways managed the Road Transport Department till October 31st, 1951 on an agency basis. The Road Transport department was taken over from 1-11- 1951 by the Government of Hyderabad State till the re-organization of States in November, 1956.When the Hyderabad Government took over the Road Transport Department from Railways, the Bus strength was 901. Consequent upon re-organization of state in 1956 on linguistic basis the Hyderabad State Road Transport Department was trifurcated and allocated among three successor states of Andhra Pradesh, Karnataka and Maharashtra. The extent of Nationalization of services in the newly formed Andhra Pradesh state worked out only 40%. The operation in the truncated areas were carried on by 13 depots with 125 routes length of 5815 kms as against 24 depots, 246 routes and 9413 routs kms existing prior to trifurcation of the state. The fleet strength reduced from 719 and 6327 to 564 and 4499 respectively. The organizational structure during the period remained more or less static till the year 1958 Andhra Pradesh state Government decides to form a Corporation under the road Transport Corporations Act 1950.1956 the Road Transport deportment was under the
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government of Andhra Pradesh and on 11th January 1958, it was, established as a STTUTARY CORPORION under the Road Transport Corporation Act, 1950 The constitution of APSRTC on 11th January 1958 under the provisions of RTCs Act 1950, heralded rapid growth of nationalized Transport in Andhra Pradesh. In pursuance of policy of nationalization, the Corporation had taken over passenger transport in Krishna, Guntur and West Godavari districts between 1959 and 1960 after a period of consolidation launched. The second phase of expansion from 1973 onwards.

During the period 1973-78, the passenger transport of intra state routes of Kurnool, Chittoor, East Godavari, and Ananthapur were nationalized in addition to Cuddapha, Nellore, Prakasham, Visakhapatnam and Vijayanagar districts. At the end of the April, 2009 the Corporation is operating 20,972 buses including about 2500 hired buses, with a strength of 1,14,036 carrying approximately 1.39 corer passengers every day to their destinations. The Corporation is credited with the many distinctions in the areas of Vehicular utilization, Kms per liter, Biggest Bus Station Complex in Asia, lower accident rate, etc., and has been recipient of many awards including for maintaining good Industrial Relations from State and Central Governments. ORGANIZATIONAL SET UP OF APSRTC: The Road Transport Corporation Act, 1950 provides for the administration of Corporation with a Board of Directors comprising of Chairman, Vice- Chairman, Managing Director and 14 members. The Board of Constitutes Sub-Committees for Stores, Purchases, Workers, Routes and Selections. The SubCommittees have been delegated with certain amount of authority under Section 12 of RTCs Act in taking decisions in major subjects assigned to them. The Vice-Chairman and Managing Director, who is the chief Executive of the Corporation is assisted by 9 Executive Directors and other Heads of Department working with them in corporate Office. The viceChairman, Managing Director, Financial Advisor and Chief Accounts officer of the Corporation are appointed by the state Government in terms of the provisions of Road Transport Corporations Act, 1950. The major policy decisions are taken by the Board, which are translated into action by the Chief Executive with his team of Managers. Participate management, more or less, is in vogue in the APSRTC in so far as top and near top Management is concerned. The functioning of Corporation is governed by the provisions of RTCsAct,1950andtheAPSRTCRules,1958madethereunder.
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For administrative convenience and the improve operational efficiency, the Corporation has been divided into 7 Zones and each Zone comprising 3 to 5 regions, with decentralized power. These Zones have their own workshops, tire retreading shops and stores. The jurisdiction of each Regional Manager is coterminous with revenue District. The regional Manager, in the rank of Head of the Department, is the Head of the Region and controls and co-ordinates the works of various departments and divisions in the Regions. The Zonal setup came into existence May, 1994 with decentralized management. The profit center is Depot. Each operating depot is controlled by a depot Manager is assisted by functional supervisors in each of the five important functions such that Mechanical, operational, Stores, Personnel and Finance. Andhra Pradesh State Road Transport Corporation has been Leading by an example. It has a number of first to its credit in INDIA: First to nationalize passengers road transport service in the country-1932.
First to introduce long distance night express services.

First to introduce A/C sleeper coach, Hi-Tech, Metro-liner, Metro-Express and InterCity services. First to introduce Depot Computerization-1986.
First to appoint Safety Commissions for improving the safety of

passengers. All

the 202 Depots in the state are computerized. Reservations of tickets on the telephone and door delivery of tickets.
To provide safe, clean, comfortable, punctual and courteous, commuter service at an

economics fare.
To provide employee satisfaction in financial and human is terms. To strive towards financial self-reliance in regard to performance and growth.

To attain a position of reputation and respect in the society. Principles of Operation:

To provide efficient, effective, ethical management of the business.

To assist the State administration in attaining good governance.

To treat the customer, i.e. passenger, as a central concern of the Corporations business and provide the best possible services. To explore and exploit technological, financial and managerial opportunities and

render the business cost effective all at times.

To regularly and constantly improve the capabilities of employees for higher

productivity.
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 To focus on service conditions and welfare of the employees and their families

consistent with their worth to the corporation.

To fulfill its obligations to the state and central governments by the optimizing return

on investment.
To emphasize environmental and community concerns in the form of reducing air and

noise pollution.
To consciously conform to the policy guidelines of the State in its Business operations. To reach a position of pre-eminence in the bus transport

business. SOCIAL OBLIGATIONS:

Bus Travel Concession: APSRTC has been extending concession to various

categories of passengers like students, journalist, physically challenged persons, freedom fighters, etc.
Reservation for seats: Certain seats are ear marked in the buses, to the ladies,

physically challenged persons and public representatives.

Passengers Amenities: Andhra Pradesh is the only state in the

country to have a

large number of bus stations and passenger shelters. For the convenience of the passengers, APSRTC build and maintains them.
Quality of service: The Corporation focuses on quality of the

service to provide throughout the

clean and neat buses and bus stations.

Safety of service: With its massive number of operations carried

times, some buses involved in some accidents. The rate of accidents is lowest among similar State Transport Undertakings (STU) in the country, which is a testimony for high levels of safety.
Accident Compensation: The Corporation has been paying

compensation to the

dependants of the deceased and victims of accidents involving its vehicles, in order to encourage out of court

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ACHIEVEMENTS:
In 1999, the corporation has entered GUINNESS BOOK OF WORLD RECORDS for

owning largest fleet of buses. LIMCA BOOK OF AWARDS:

The Limca Book of Records 2000 has mentioned APSRTC as

the largest Transport

Corporation in the world with the largest fleet of buses and highest passengers turnout. NATIONALPRODUCTIVE COUNCIL (NPC) AWARDS:
Productivity awards for the years 1982-83, 1983-84, 1987-88, 1991-92, 1993-94 and

1995-96.
National productivity awards for Hyderabad city operations for Year 1990-91. Awards for second best performance in the country and for city operations to

Visakhapatnam for the year 1995-96.

Hyderabad city second best productivity performance award for the year 1996-97.

Tirumala Tirupathi certified with merit award for the year 1996-97 in the category of road Transport (hills) sector. AWARDS FOR BEST INDUSTRIAL RELATIONS:
The government of Andhra Pradesh presented May Day awards for the year 1993 to

APSRTC for the best management and outstanding contributions towards harmonious industrial relations and labor welfare.
The government of Andhra Pradesh presented May Day award for the year 1995 to

APSRTC for the efficient management and good Industrial relations and labor welfare. The government of Andhra Pradesh presented May Day award for the year 1998 to APSRTC for encouraging women workers in the category of conductors.

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BRIEFING ABOUT WORKERS PARTICIPATION IN MANAGEMENT DECISIONS IN APSRTC: In APSRTC the workers participation is practiced in 3 forms. They are: WORKS COMMITTEES ADVISORY COUNCILS GOVERNMENT ORDERS In the APSRTC the Works committees is in practice as Industrial Disputes Act 1947Formation of works committees under Sec.3 of the Act. It is represented that the Industrial Relation officer of the concerned area are visiting the workshops and depot garages and insisting to form the works committees as laid down in the Act. In terms of Sub-section (1) of section 3 of the Industrial Disputes Act 1947 where an industrial establishment employing 100 or more workmen are required to constitute the duty of the Works Committee promote measures for securing and preserving amenity and good relations between the employer and workmen and, to that end, to comment upon matters of their common interest or concern and endeavor to compose any material difference of opinion in respect of such matters. The following are the guidelines for the formation of WORKS COMMITTEE: CONSTITUTION: Any employer of whom an order made under sub-section (1) of section 3 shall forthwith proceed to constitute a works committee in the matter prescribed in this part. NUMBER OF MEMBER: The number of members constituting shall be fixed so as to afford representation to the various categories groups and classes of workmen engaged in, and to the section, shops or deportments of the establishment.

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REPRESENTATIVES OF EMPLOYER: Subject to the provisions of these rules the representatives of the employer shall be nominated by the employer and shall, as far as possible by officials in direct touch with or associated with the working of the establishment.

CONSULTATION WITH TRADE UNIONS: --Where any workmen of an establishment are members of a registered trade union, the employer shall ask the union to inform him in writing--A) How many of the workmen are members of the union; and B) How their membership is distributed among the sections, shops or Deportments of the establishment. PROCEDURE FOR ELECTION: (i) The employer shall fix a date as a closing date for receiving nominations from the candidates for election as workmens representatives on the committee. (ii) For holding elections, the employer shall also fix date which shall not be earlier than three days and later than 15 days after the closing date for receiving nominations. (iii) A copy of such notice shall be sent to registered trade union or union concerned. OFFICERS OF THE COMMITTEE: (i) The committee shall have among its office bearers a Chairman, a Vice Chairman, Secretary and Joint Secretary. The Secretary shall be selected every year. (ii) The Chairman shall be nominated by the employer from amongst the employers representatives on the committee and he shall, as far as possible to the head of the establishment.
(iii) The Vice Chairman shall be elected by the members of the Committee

representatives the workers, from amongst themselves. APSRTC Management taking suggestion from the workers by conducting councils with the workers participating. Here Advisory Councils are two phases thus: (i) DEPOT ADVISORY COUNCILS (ii) REGIONAL ADVISORY COUNCILS

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1) DEPOT ADVISORY COUNSILS: Councils constitution of Depot Advisory Councils at each Depot and conducting regular monthly meetings to review all aspects of performance and passenger satisfaction. Though we have started those Depot Advisory Councils with great enthusiasm, it is reported that (i) These Depot Advisory Councils are not meeting regularly; (ii)The suggestions given by employees are not given due weight age; (iii) Employees are not encouraged to feel-free to discuss the issue and give suggestions; (iv)The decisions taken in the meeting (through very few) are not being implemented; (v) The economic for introduction of single Crew schedules and TIMs are not being explained properly. Therefore, the following instructions are issued to make the Depot Advisory Councils broad based and make them functions effectively to make the employees/unions partners in the working of the Depot, thereby in the progress of the organization.
i)

From now on, the Depot Advisory Council shall consist of SIX

Employees of Depot Managers choice selected from amongst the categories best conductor/ Best KMPL Driver/Best Accident-free Driver/ Best Mechanical/Senior most employees of the Depot etc Four Depot supervisors and in charge of the Depot i.e. Depot Manager.
ii) The Depot Advisory Councils should meet on the 1st Tuesday of every iii) Month. If 1st Tuesday happens to be a holiday, they should meet on next working

day. iv) The Depot Advisory Councils should necessary discuss the following Items in every meeting and come up with concrete solution:
v) There should be free-flow of information across the table in the Depot Advisory

Council Meetings. Encouragement should be given for valid and concrete suggestions which will contribute to the improvement of the Depot.

30

REGIONAL ADVISORY COUNCILS: CIRCULAR NO . PD-70/2003, DATED 23.08.2003. COUNCILS Constitution of Regional Advisory Councils at each Region and conducting of monthly meetings of the councils Instructions issued Instructions were issued through Circular 1st to 5th cited to constitute a Depot Advisory Council at each Depot with the respective Depot Manager. In charges of operations and Mechanical Sections along with two representatives nominated by the Regional Union (s). It was stipulated therein that these Councils shall meet once in a month to review the performance of loss making routes in the Depot and take appropriate action on the issue coming with in the preview of Depot Manager and to forward its recommendations in respect of other issue to the Regional schedule Cell so as to enable it to examine and take appropriate measures to improve the performance of the loss making routes. The Regional Advisory Council shall meet once in a month to take appropriate measures to improve the performance of the Region concerned. The Regional Manager will discuss on issues with representatives of the workers. Regional Advisory Councils will impress the representatives of the workers in the improvement of Region and to solve their grievance. The Regional manager will send the complains and suggestions to ED (A)/ HO by 10th of the following month as in the case of Depot Advisory Council Meetings.

GOVERNMENT ORDERS: Andhra Pradesh State Road Transport Corporation Appointment of Board of Directors to APSRTC-Orders Issued: TRANSPORT, ROADS& BUILDINGS (Tall) DEPORTMENT G.O.Ms.No.142. Dated. 29.06.2009 I. G.O.NO. 344,TR&B Dept. (Tall) Dated 12-12-2007. II. G.O.NO. 21, TR&B Dept. (Tall) Dated 20-01-2009.

31

CHAPTER - 4 COMPANY PROFILE

32

COMPANY PROFILE
A.P.S.R.T.C. PROFILE INTRODUCTION: The origin of APSRTC dates back to 1932 when it was first established as a wing of Nizam state railways in thrust while Nizam state. As a pioneer in the field of nationalized passenger road transport, it had 27 buses and 166 employees at the inception in the name of Nizams state road railways transport department (NSR _ Rs) The APSRTC has been developed under the road transport corporation act, 1950 with an objective of providing efficient, economic, adequate and properly coordinated road transport in the state. ORGANIZATION: At present the corporation is operating with over 19380 buses and runs over 65.01 lakh kms per day carrying over 16.41 lakh passengers every day. Till now the corporation has established 212 depots for operation and maintenance of buses , 6 zones , 23 regions and also workshops for carrying out major repairs and overall of buses and 7 re-treading shops to meet the demand for re-treading of tires. The corporation runs a bus body building unit with a capacity to fabricate about 700 800 bus bodies per anum. The corporation provides passengers amenities on a massive scale. It has built 765 stations and 1880 bus shelters. The bus stations have facilities like canteen, waiting halls, drinking water, toilets, shops etc. two bus stations one at Vijayawada and one at Hyderabad are said to be large bus station in Asia. In its drive to modernize operations the corporation embarked on computerization. It has developed adequate soft ware for its depot computerization. RTC is occupying a prime place in the public sector undertakings and topmost position in the vehicles held, fleet utilization and fuel efficiency among all the breakdown rate is lowest among all S.T.Us. S.T.U in the country. The accident rate and

33

BOARD OF DIRECTORS
Address:
1. Sir M. Nageshwara Rao, 2. Sir Syed Mahmoob, 3. APSRTC National Mazdoor 4. APSRTC National Mazdoor

Working President General Secretary Union Hyderabad. Union Hyderabad.

The Vice Chairman and Managing Director shall take further action accordingly. (BY ORDRE AND IN THE NAME OF THE GOVERNOR OF ANDHRA PRADESH). In the above G.O. of Andhra Pradesh, those are appointed as Board of Directors they are Union members in the APSRTC in recognized Union (APSRTC National Mazdoor Union). So with this G.O. we conclude that, workers of APSRTC, they are participating and playing major role as Board of Directors in APSRTC. RIGHTS AND OBLIGATIONS OF RECOGNISED UNIONS IN APSRTC: CIRCULAR No.PD-29/2009,DT.08.05.2008 The Joint Commissioner of labor & Chief Returning Officer conducted Union Membership Verification in APSRTC through Secret Ballot on 27.03.2008 and Postal Ballot on 31.03.2008 and 01.04.2008 to determine the majority Union under Clause(3) and (6) of Code of Discipline, and communicated the results thereof to the Corporation. As per the recommendations of Joint Commissioner of Labor & Chief Returning. I.FACILITIES EXTENDED TO APSRTC NATIONAL MAZDOOR UNION

RECOGNISRD UNDER CLAUSE (3) OF CODE OF DISCIPLINE;

1. Collections of Union Membership Subscriptions:

2. Unions Notices: 3. Mass Meetings (Gate Meetings): 4. Joint Meetings: 5. Meetings at Depot Level: 6. Meetings at Production Unit Level: 7. Meetings at Regional Level: 8. Meetings at Zonal Level:

34

9. Meetings at Corporate Office Level With EDs: 10. Meetings at Vice-Chairman& Managing Director Level: 11. Union Representatives Calling on Departmental Officers: 12. Nomination To the Committees: 13. Relief To Office Bearers of the Union: 14. Depot Secretary: 15. Regional Secretary: 16. Adjustments of Duties of Depot Secretary:

ORGANIZATIONAL CLIMATE: The affairs of the corporation are managed by vice chairman and managing director who report to the board, which he is in turn appointed by the central and state governments under sections 5 of the RTC act 1950. The managing director is assisted by a team consisting of very senior executives from finance, operations, engineering and general administration department. Functioning of the organization is a three tier system comprising zones, regional offices, depots and now it planning to implement the divisional setup also. NATIONAL AND STATE LEVEL AWARDS RECEIVED BY A.P.S.R.T.C; APSRTC has secured several awards at national as well as state level from the following institutions / government. Petroleum conservation research association awards for improvement for fuel

efficiency for the years 1985 , 1997 and 1999

The national productivity council award for all round improvement was won by the

corporation during the last three years. In the year 1986, corporation has bagged another prestigious award from the president of India for its effective performance. In the category of hills sector the corporation has won merit award in the ThirumalaThirupathi sector. Best productivity performance award was received for the Hyderabad city (passenger category)

35

 Association of state road transport undertaking (ASRTU) .APSRTC

as bagged

award for highest KMPL and for improving the oil conservation for the year 1996 97 for city services and also Visakhapatnam city services of APSRTC as best in fuel efficiency amongst all city services. PETROLEUM CONSERVATION RESEARCH ASSOCIATION (PCRA): Trophy for maximum improvements in fuel efficiency, from 1982 83 to 1997 98. Trophy for highest level of fuel performance from 1985-86 to 1994 95 and 199697.
18th successful year for achieving runner

up place in KMPL for the year 1999- 2000.

SAFETY: APSRTC has also achieved the award of the road safety (mofssil) trophy for the year 1996- 97 and 1997 98 by APSRTC. Road safety award by transport development road safety council , new Delhi (1987 88) The chartered institute of transport, Great Britain adjusted APSRTC as the safest road transport corporation and presented the road safety award on 11-02-1998 at New Delhi. OPERATIONS: The Corporation is holding a fleet of 19380 buses an average daily kms of 65.55 lakhs to transporting approximately 116.41 lakh passengers. The daily average earnings from these buses 9000.10 lakhs. The operational network of the corporation comprises of 7847 routes through 212 depots scrawling over the entire state. It is also operating more than 3251 buses as city services in Hyderabad, Visakhapatnam, and Vijayawada etc.

COMMERCIAL ACTIVITIES: Buses and bus stations constitute the prime source of commercial revenue .the major part of commercial revenue is from the license fees realized from the stalls, shops, canteens , followed by advertisement on buses and bus stations and premises of the corporation, close
36

circuit television in the bus station , parcel services and the carriage of postal mail bags. For display of advertisement on the buses and bus stations, the corporations have appointed media wise advertisement agents. There is exclusive agency for transportation of parcels by A.P.S.R.T.C. buses named ANL parcel services. Carriage of postal mail bags in A.P.S.R.T.C is a statutory for which the postal departments pay subsidized transport charges. INFRINGEMENTS: The menace of the infringement of the operation of the private vehicles has increased considerably in the recent years and it is affecting the revenues of the corporation considerably. So the A.P.S.R.T.C. has undertaken special drive at the initiative of the transport minister to encourage people in travelling in the buses of the organization and explaining of the travel. QUALITY OF SERVICE: The corporation is providing quality of services like cleanliness, punctuality, reliability, timing boards, destination boards, and up keep of business at various levels. SOCIAL RESPONSIBILITIES: RTC has been discharging its social responsibilities by providing concessional / free travel facilities to different categories of commuters such as to students, journalists and physically handicapped persons etc. The social cost on this account was estimated to be around 118.21 cores. PERSONAL DEPARTMENT: RTC is providing employment to unemployed youth in major way in the state every year. On an average about 7,000 candidates in different categories of conductors / drivers/ cleaners are being recruited in a year. Regular training classes are conducted at zonal training schools for fresh and service employees in all categories, in order to improve their behavior, upgrading their technical skills and drivers are appraised to change their mindset and to survive in the competitive environment. COMPUTERIZATION:

37

Number of depots computerized are 212. Apart from this all the zonal staff training colleges, regional stores at uppal, musheerabad, Karimnagar and Vijayawada are also computerized. Computerized bus tickets reservation system passes have been installed at important bus stations like, Hyderabad, Guntur, Vijayawada, and Visakhapatnam. APSRTC is the first public road transport undertaking in the country to introduce depot computerization project in the year 1983- 84. In a drive to modernize operation the corporation embarked on computerization. Modems are introduced to connect depot, region, zones and head office for receiving the date quickly. COST CONTROL: Effective maintenance of the fleet at the depots coupled with modernization, effective production planning and control, the retrieval activity up gradation Of workers skill through training in workshops and depots resulted in the reduction of cost on the materials. During this period the inflation in materials prices was about 43 %. The significant cost reduction was made possible through systematic cost control efforts. JOINT VENTURES: APSRTC as a part of its diversification program has started joint ventures for parcel services, tire retreading etc. INDUSTRIAL RELATIONS: Good industrial relations and skilled workers are corporation forte, corporations workers are hard working and rise up to any challenge. In 1987, they performed a near miracle when corporation expanded its fleet to new areas recording an all time growth of over 25 % in one calendar year. The corporation extends health care, scholarships, and housing and vehicle loans to the employees in a big way. TOTAL DEPARTMENTS IN APSRTC 1. Mechanical engineering department 2. Operation department 3. Sores and purchase department 4. Personal department 5. Account department
38

6. Civil engineering department 7. Medical department 8. Security department 9. Statistical department THE SERVICES OF THE CORPORATION: 1. Class I service a) Special scale b) Senior scale c) Intermediate scale d) Junior scale 1. Class II service 2. Class III service 3. Class IV service CORPORATION DETAILS: Established date Total no. of buses Total no. of depots Number of employees No. of KM daily covered No. of passengers daily travelling No. of state wise bus stations No. of state wise bus shelters 11th January 1958 18,670 202 1, 29,246 58.48 lakhs 121.31 lakhs 676 1,797

VISION AND MISSION OF APSRTC

VISION: APSRTC is committed to provide consistenty high quality of services and to continuosly improve the services through a process of teamwork for the ut most satisfaction of the passengers and to attain a position of pre- eminence in the bus transport sector. MISSION:
39

Efficient,economic,coordinated and adequate passenger road transport servicess. The Road Transport Corporation Act, 1950 provides for the administration of Corporation with a Board of Directors comprising of Chairman, Vice- Chairman, Managing Director and 14 members. The Board of Constitutes Sub-Committees for Stores, Purchases, Workers, Routes and Selections. The Sub-Committees have been delegated with certain amount of authority under Section 12 of RTCs Act in taking decisions in major subjects assigned to them. The Vice-Chairman and Managing Director, who is the chief Executive of the Corporation is assisted by 9 Executive Directors and other Heads of Department working with them in corporate Office. The vice- Chairman, Managing Director, Financial Advisor and Chief Account officer of the Corporation are appointed by the state Government in terms of the provisions of Road Transport Corporations Act, 1950.

40

CHAPTER

THEORETICAL REVIEW OF STUDY

THEORETICAL REVIEW OF STUDY

MEANING OF PERFORMANCE APPRAISAL: Appraisal is the evaluation of the worth and quality of merit. Appraisal should measure both performance in accomplishing goals and plans. It is evaluation of present performance and future capabilities. Performance measures also link information gathering and decision-making processes which provide a basis for judging and effectiveness of personal sub-divisions such as recruiting, selection, training and compensation. That is, the appraisal should provide employees with information about their strengths and weaknesses so that they can work to
41

become more activate information plays a vital role in the organization as a whole. They help pin point weak areas in the primary systems (e.g. marketing, finance and production). It is easier for managers to see which employees need training or counseling, because jobs are grouped by categories. These categories can be broken into smaller groups, if necessary. If valid performance data are available, timely, accurate, objective, standardized and relevant, management can maintain consistent promotion and compensation policies throughout the total system. DEFINITION: Performance Appraisal is a systematic, periodic and so far as humanly possible, impartial rating of employees excellence in matters pertaining to his present job and to his potentialities for a better job.

GOALS OF PERFORMANCE APPRAISAL: Given the importance of performance appraisal, the goals of performance appraisal are self-evident. They are as follows: A basic goal of any appraisal system is to provide a valid reliable measure of employee performance along with all relevant dimensions. That is the appraisal system should. Show who is performing well and who s not clearly, what are their areas of strengths
42

and weaknesses. The employees should have confidence that the appraisals are reliable and accurate and should have meaningful dimensions that are relevant for which the appraisal is being performed.
To provide information in a form that is useful and appropriate for the organization

with regard to human resource planning, recruiting and selection, compensation, training, and the legal context. The ultimate goal for any organization using performance appraisals is to be able to improve performance on the job. This goal actually has two parts. Firstly, the organization needs to be able to use performance appraisal for Decision-making. The second part of this goal is related to motivation effective in the job.

ROLES OF VARIOUS ELEMENTS INVOLVED IN THE PERFORMANCE APPRAISAL: The various elements involved in the performance appraisal process are role of the organization. The organization, primarily through the work of its human resource function, develops the general performance appraisal process for its managers and employees to use. One of its first considerations is how to use the information gained from performance appraisal. Will it be used for developmental feedback only, for example, or will decisions about pay and/or other outcomes be based on these rating as well? It is obviously important that every one understand exactly what the ratings are to be used for and exactly how they will be used. The organization also determines the timing of the appraisals. Some organizations conduct the performance appraisals annually, or even twice a year. Some adopt the policy of conducting the appraisal on the employees anniversary date of joining the organization. Frequent appraisal is done, sometimes for new employees. The end of the year appraisals has a disadvantage of the rater not being to devote as much time as required to each due to the large number of appraisal to be filled. The organization is also responsible for ensuring that clear and specific performance standards are available to managers. Moreover, the organization should also ensure that these standards are carefully communicated to the employees. The organization should also ensure

43

that all rates should use same set standards and that employees know what is expected of them. ROLE OF THE RATER: The rater (traditionally and most typically the supervisor of the employee being appraised) plays the largest role in the appraisal process. As noted above although the organization is responsible for making sure that all raters have clear performance standards. Also, as the performance information is acquired and learn those standards as a way of evaluating the performance. When making these decisions the rater needs to consider the context in which performance can be factored into the rating so that any extenuating conditions can be taken into consideration. The most critical part of the raters job is to collect and document the dayto-day behavior of the employee and translate it into ratings. Once the ratings have been completed it is the rater, usually, who must communicate the results and consequences to the Rates.

44

CHAPTER

DATA ANALYSIS & INTERPRETATION

EFFECTIVENESS OF PERFORMANCE MANAGEMENT SYSTEM IN APSRTC

The basic aim of the new PMS was to create a performance appraisal system with more objectivity and the system itself was created on a more scientific basis. The new performance management system was designed keeping in view the following objective

45

 To accomplish overall organizational vision and mission by linking individual

performance to company objective. To cascade companys strategic goals to individual level To promote professional excellence To encourage two-way communication between the executive& the reporting officer & bring about transparency in the performance assessment process To evaluate the potential of the executive to assume higher responsibilities in the organization. To provide a source of talent for meeting the organizations growth requirements through a process of mapping the competencies & potential of executives To translate future skill requirements of the organization into individual development plans.& To facilitate fulfillment of individual aspirations
To identify high performers& recognize them through rewards & incentives.

1. Is any standard performance appraisal being carried out in your organization?

OPINION YES NO NO RESPONSE

FAVOUR OF RESPONDENT 50 0 0

TOTAL OF RESPONDENT 50 0 0

PERCENTAGE 100 0 0

46

INTERPRETATION: The standard performance appraisal being carried out in your organization , is study 100 % of the employees was given answer yes to the question.

2 .Are you satisfied with the method of appraisal system being carried out in the organization.-? OPINION Strongly agree Agree Non of these Disagree Strongly agree FAVOUR OF RESPONDENT 3 37 2 5 3 TOTAL OF RESPONDENT 50 50 50 50 50 PERCENTAGE 6% 74 % 4% 10 % 6%

INTERPRETATION: From the study 74 % of the employees are satisfied with the present performance appraisal system, 4 % strongly satisfied, 6 % indifferent, 10% not satisfied, 6 % strongly dissatisfied with the present systems.

3. Is the performance appraisal of the employee helps in increasing the personnel growth?
47

OPINION STRONGLY AGREE AGREE NON OF THESE DISAGREE STRONGLY DISAGREE

FAVOUR OF RESPONDENT 3 37 2 5 3

TOTAL OF RESPONDENT 50 50 50 50 50

PERCENTAGE 6% 74 % 4% 10 % 6%

INTERPRETATION: From the study 74 % of the employees are satisfied with the present performance appraisal system, 6 % strongly satisfied, 4 % indifferent, 10 % not satisfied, 6 % strongly dissatisfied with the present systems

4. Is the performance appraisal influences the overall organizational growth- ?

OPINION STRONGLY AGREE AGREE INDIFFERENT DISAGREE STRONGLY DISAGREE

FAVOUR OF RESPONDENT 8 37 2 3 0

TOTAL OF RESPONDENT 50 50 50 50 50

PERCENTAGE 16 % 74% 4 % 6% 0 %

INTERPRETATION:

48

From the study 74 % of the employees are satisfied with the present performance appraisal system, 16 % strongly satisfied, 4 % indifferent, 6 % not satisfied, 0 % strongly dissatisfied with the present systems.

Does the process of present performance appraisal system is very clear - ?

OPINION Strongly agree Moderately agree Neutral

FAVOUR OF RESPONDENT 15 26 09

TOTAL OF RESPONDENT 50 50 50

PERCENTAGE 30 % 52 % 18 %

INTERPRETATION: The process of present performance appraisal system is very clear is the employees strongly agreed are 30 %, moderately agreed are 52 % and neutral are 18 %.

6 .Awareness About The Criterisa Used To Study Performance Appraisal?

OPINION

FAVOUR OF RESPONDENT

TOTAL OF RESPONDENT
49

PERCENTAGE

Strongly agree Moderately agree Neutral

12 25 13

50 50 50

24% 50 % 26 %

INTERPRETATION: Awareness about the Criteria Used to Study Performance Appraisal is the employees who strongly agreed are 24 %, moderately agreed are 50 %, and Neutral are 26 %.

7.

Who is appraising you -?

OPINION Colleague Superior Top management Others

FAVOUR OF RESPONDENT 0 38 12 0

TOTAL OF RESPONDENT 50 50 50 50

PERCENTAGE 0% 76 % 24 % 0%

INTERPRETATION;

50

From the study 76 % of the employees are being appraised by their superiors, 0 % is appraised by the others, 24 % are appraised by the top management, and 0 % is from their colleagues.

8. How often performance appraisal is doing in your organization. OPINION MONTHLY QUARTERLY HALF YEARLY YEARLY FAVOUR OF RESPONDENT 0 0 0 50 TOTAL OF RESPONDENT 50 50 50 50 PERCENTAGE 0% 0% 0% 100 %

INTERPRETATION: From the study 100 % employees set the performance appraisal doing yearly in the organization.

9. Are you being rewarded based on your performance?

OPINION YES NO NO RESPONSE

FAVOUR OF RESPONDENT 20 25 5

TOTAL OF RESPONDENT 50 50 50
51

PERCENTAGE 40 % 50 % 10 %

INTERPRETATION: From the study 50 % of the employees are not rewarded based on their performance, 10 % employees were not given any response to that and 40 % employees are rewarded based on their performance.

10. Can the performance appraisal is helpful to identify the areas of an employee needs to improve. _? OPINION FAVOUR OF RESPONDENT YES NO NO RESPONSE 32 13 5 TOTAL OF RESPONDENT 50 50 50 64% 26 % 10 % PERCENTAGE

INTERPRETATION: From the study 64 % of the employees said that the performance appraisal system is helpful to, areas of an employee needs to improve, 26 % are said it will not helpful and 10 % of the employees were not given any response

52

11. Appraisal System Helpful In Knowing the Strength and Weaknesses?

OPINION Strongly agree Moderately agree Neutral

FAVOUR OF RESPONDENT 21 12 19

TOTAL OF RESPONDENT 50 50 50

PERCENTAGE 42 % 20 % 38 %

INTERPRETATION: The employees who are strongly agreed are 42 %, moderately agreed are 20 % and Neutral are 38 %.

12. .Performance appraisal was designed to achieve high levels of performance of employees.

OPINION Strongly agree Moderately agree Neutral

FAVOUR OF RESPONDENT 25 13 12

TOTAL OF RESPONDENT 50 50 50

PERCENTAGE 50 % 26 % 24 %

53

INTERPRETATION: The employees who are strongly agreed are 50 %, moderately agreed are 26 % and Neutral are 24 %.

13. Does performance appraisal system create a culture of excellence that inspires every employee- ? OPINION Strongly agree Agree Indifferent Disagree Strongly disagree FAVOUR OF RESPONDENT 5 58 10 7 0 TOTAL OF RESPONDENT 50 50 50 50 50 PERCENTAGE 10 % 56 % 20 % 14 % 0%

INTERPRETATION: From the study 56 % of the employees are agree with the question, 10 % are strongly with the above question, 20 % are indifferent, 14 % are not agree with that the performance appraisal system creates the culture of excellence.

14. Does performance appraisal system create a culture of excellence that inspires every employee- ?

OPINION Strongly agree

FAVOUR OF RESPONDENT 5
54

TOTAL OF RESPONDENT 50

PERCENTAGE 10 %

Agree Indifferent Disagree Strongly disagree

28 10 7 0

50 50 50 50

56 % 20 % 14 % 0%

INTERPRETATION: From the study 56 % of the employees are agree with the question, 10 % are strongly with the above question, 20 % are indifferent, 14 % are not agree with that the performance appraisal system creates the culture of excellence.

15.

The current performance appraisal system is creating conflict among the workers? OPINION Strongly agree Agree Indifferent Disagree Strongly disagree FAVOUR OF RESPONDENT 05 38 7 0 0 TOTAL OF RESPONDENT 50 50 50 50 50 PERCENTAGE 10 % 76 % 14% 0% 0%

GRAPHICAL REPRESENTATION:

55

INTERPRETATION: The employees who strongly agreed are 10 %, moderately agreed are 76 %, and Who opted neutral are 14 %, strongly disagreed are 0%.

16.

The current performance appraisal system is creating conflict among the workers?

OPINION Strongly agree Agree Indifferent Disagree Strongly disagree

FAVOUR OF RESPONDENT 05 37 08 0 0

TOTAL OF RESPONDENT 50 50 50 50 50

PERCENTAGE 10 % 74 % 16% 0% 0%

GRAPHICAL REPRESENTATION:

56

INTERPRETATION: The employees who strongly agreed are 10 %, moderately agreed are 74 %, and Who opted neutral are 16 %, strongly disagreed are 0%.

17. How are the relations with your colleagues and superiors?

OPINION Very Good Good Satisfied Not satisfied

FAVOUR OF RESPONDENT 30 15 5 0

TOTAL OF RESPONDENT 50 50 50 50

PERCENTAGE 60 % 30 % 10% 0%

GRAPHICAL REPRESENTATION:

INTERPRETATION: The employees are very good 60%, good 30%, satisfied 10% and not satisfied 0%

18. How frequently the performance appraisal is conducted? OPINION FAVOUR OF RESPONDENT
57

TOTAL OF RESPONDENT

PERCENTAGE

Yearly Quarterly Half-yearly Monthly

10 10 30 0

50 50 50 50

20 % 20% 60% 0%

GRAPHICAL REPRESENTATION:

INTERPRETATION: In the above question, 20 % of employees are preferred for yearly performance appraisal, 20 % of employees are preferred for quarterly performance appraisal. , 60% of employees are preferred for half yearly performance appraisal and, 0% of employees are preferred for monthly performance appraisal.

19. How frequently the performance appraisal is conducted? OPINION Yearly Quarterly Half-yearly Monthly FAVOUR OF RESPONDENT 10 10 30 0 TOTAL OF RESPONDENT 50 50 50 50 PERCENTAGE 20 % 20% 60% 0%

GRAPHICAL REPRESENTATION:

INTERPRETATION: In the above question, 20% of employees are preferred for yearly performance appraisal, 20% of employees are preferred for quarterly performance appraisal. , 60% of
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employees are preferred for half yearly performance appraisal and, 0 % of employees are preferred for monthly performance appraisal.

20. Have you observed any abnormally/disparity in performance appraisal system? OPINION YES NO NO RESPONSE FAVOUR OF RESPONDENT 40 10 0 TOTAL OF RESPONDENT 50 0 0 PERCENTAGE 80 20 0

GRAPHICAL REPRESENTATION:

INTERPRETATION: 80 % employees are observed any abnormally/disparity in performance appraisal system, 20 % Not observed any abnormally/disparity in performance appraisal system.

59

CHAPTER 7 FINDINGS, SUGGESTIONS AND CONCLUSION

FINDINGS:
Employees having good interpersonal relationship in A P S R T C they work like one family.

60

 There is no discrimination of position, age, religion and have good co-operation among workers and officers. The organization provides well working conditions to the workers by this performance of the employees in the organization is very good. Organization is providing job security, and well-defend career path. Yearly evolution the performance appraisal is more effective in the organization. Communication between employees and organization is good. Thus maximum response toward manual method of filling the form method is well. Most of the employees are consider as annually performance appraisal is best. The promotional policy well defined in the organization. Compensation not linked with performance. Merit basis is the performance appraisal done

SUGGESTIONS:
After studying the companys performance appraisal we have drawn some measures

for more effective and result oriented working of the PA policy. Following are some suggestions, which were drawn after the student
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 Transparency performance appraisal There should be proper and complete feedback. A copy of Paschal be given to the employee after signature of the HOD Marks should be integrated with other depot. Where work is related with outcomes The targets of reporting officer & subordinates shall be clearly identified/ separated. It is felt that there is no difference in the targets. Individual, reporting officer & reviewing officer all sit together for PA instead of the present two tier system. Matching of PA of individual & reporting officer Implementation should be in the true spirit of there is a strong need for enhanced letter& spirit after coming out from past knowledge and experience of old PA. Prepare the table of significant changes to make it more appreciative by all The ideology needs to translated to practices in the organization In spite of defined rating marks are given on %of outstanding criteria (which is 20%presently). Does this mean only 20% employees in APSRTC are outstanding & balances are less? This needs to be changed for the proper implementation of PA system in true spirit. PA is fine but promotions based on this is not
Once final scores are given no one tell/ communicates the person cutting of scores.

CONCLUSION
Knowing how people perform in their work that is their performance level and identifying those who have for handling the work more effectively are essential for any organization. Without such knowledge, management cannot take the decision regarding the need for training, promotion neither for transfer within the particular branch or across the branches of the organization. In other words, management need to appraise the performance
62

in order to take the decision regarding the rewarding the employee in order to motivate him or taking the corrective actions. Earlier in the APSRTC marking system was used for appraising the performance of the candidates. System of grading suffers from few of the drawbacks such as the grades were completely unknown to the candidate even result was not reveal to the candidate and promotion was the only reward provided which is also get due after the three year of service. As a result employees were dissatisfied with it. In order to overcome these limitations APSRTC took the initiative and call a external consultancy AT KEARNEY to devise a new system for appraising the performance. The consultancy devises the performances management system known as PMS which was bought into practice in 2004. This PMS system overcome the drawback of the previous method of appraising the performance and even has one major advantage that is that it facilities the two-way communication between the reporting officer and the candidate.

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CHAPTER 8 QUESTIONNAIRES, BIBLIOGRAPHY AND GLOSSARY

1. Is the any standard performance appraisal being carried out in your

organization? a. Yes b. No 2 Are you satisfied with the method of appraisal system being carried out in the organization.-? a. Strongly agree b. d. agree disagree
64

c. Non of these

e. 2

strongly agree

Is the performance appraisal of the employee helps in increasing the personnel growth? a. Strongly agree b. Agree c. Non of these d. Disagree e. Strongly agree

Is the performance appraisal influences the overall organizational growth- ? a. Strongly agree b. Agree
c. Indifferent

d. Disagree e. Strongly agree 5. Does the process of present performance appraisal system is very clear - ?
a. Strongly agree b. Moderately agree c. Neutral

6 .Awareness About the Criteria Used To Stud Y Performance Appraisal

a. Strongly agree b. Moderately agree c. Neutral

7. Who is appraising you -? a. Colleague b. Superior c. Top management d. Others 8. How often performance appraisal is doing in your organization. a. Monthly b. Quarterly c. Half yearly d. Yearly
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9. Are you being rewarded based on your performance?

a. Yes b. No c. No Response

10 Can the performance appraisal is helpful to identify the areas of an employee needs to improve. _?
a. Yes b. No c. No Response

10 Appraisal System Helpful In Knowing The Strength And Weaknesses

a. strongly agree b. Moderately agree c. Neutral

10 Performance appraisal was designed to achieve high levels of performance of employees.

a. strongly agree b. Moderately agree c. Neutral

13 . Does performance appraisal system create a culture of excellence that inspires every employee-?
a. b. c.

Strongly agree Agree Indifferent Disagree

d.

e. Strongly agree 14. Does performance appraisal system create a culture of excellence that inspires every employee-?
a. Strongly agree b. Agree 66

c. Indifferent

d. Disagree e. Strongly agree

15. The current performance appraisal system is creating conflict among the workers? a. Strongly agree b. Moderately agree C. Neutral d. Moderately disagree E. Strongly disagree. 16. The current performance appraisal system is creating conflict among the workers? a. Strongly agree b. Moderately agree C. Neutral d. Moderately disagree E. Strongly disagree.

17. How are the relations with your colleagues and superiors?
a. Very good b. Good

c. Satisfied d. Not satisfied 18. How frequently the performance appraisal is conducted?
a. Yearly b. Quarterly

c. Half-yearly d. Monthly 19. How frequently the performance appraisal is conducted?

a. Yearly b. Quarterly

c. Half-yearly d. Monthly 20. Have you observed any abnormally/disparity in performance appraisal system?
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a. Yes

b. No

BIBLIOGRAPHY
1. Bibliographical references for books C.B.Mamoria, personal management, Himalaya publishing houses, India, 1985.
L.M.Prasad, principles & practice of management, sultan chard & sons, New Delhi,

2001.
Mize S.saiyadain , Human resource management, Tata Mc Grew Hill publishing

company ltd, New Delhi 2003.

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 T.V.Rao, Appraising & developing managerial performance, T.V.Rao learning system Pvt Ltd.1999. FLIPPO. 1. Bibliographical references for non print media Internet.
http:/www.performance appraisal .com/intro.html

GLOSSARY

www.Citehr.com

http://en. Wikipedia. Org/wiki/Performance-appraisal

http://www.performance-appraisal.com/intro.htm

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http://www.performancemanagementguide.com/

www.apsrtc.com.

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