Summer Training Project Report Submitted Towards The Partial Fulfillment For Award Of The Degree Of Bachelors of Business Administration (2007-2010)


Submitted To HOD – BBA DEPTT.

Submitted By SHIKHA GUPTA Roll no.: 9071571 BBA – 6th Sem



This is to certify that present thesis titled “Study of Performance Appraisal System at Vodafone” is based on original research and has not been submitted in part or whole for any diploma or degree of any university. The works of other authors, wherever they have been made use of in this study, have been duly acknowledged at relevant places.



One of the most pleasant aspects of writing an acknowledgement is the opportunity to thank all those who have contributed to it. Unfortunately, the list of expression of gratitude- no matter how extensive – is always incomplete and inadequate. This acknowledgement is no exception. First of all, I wish to express my sincere gratitude to Faculty Guide, HAERT, Greataer Noida, for giving me opportunity to do research under her profound guidance. Because of her inspiring guidance, motivation, positive criticism, continuous encouragement and untiring supervision this work could be brought to its present shape.

I would like to thank all of them who in one way or the other have helped me.



4 . The Broad objective of the project is to equipped the trainees with all the quality which is essential to face any circumstances which can arise while providing All these steps help me to understand how to cope up with different types of people and there diversified need and satisfaction level. Vodafone needs to find potential clients.PREFACE This project will accomplish to understand how the people interact with technology savy products and if they are ready for doing all the trading through net. To maintain and cope up with the growing competition from the various online trading providers. The project also helps in understanding the trend of the scripts of the particular sector in different market condition. also the new investors and satisfy there needs.

Chapter 6: Analysis and Interpretation of Data Chapter 7: Conclusion and Suggestions Annexure 5 .Theoretical Review Chapter 5: Performance Appraisal System in Vodafone.CONTENTS Chapter 1: Introduction Chapter 2: Objective and Methodology of the Study Chapter 3: Organization Profile Chapter 4: Performance Appraisal.


the practice of appraisal is a very ancient art. Yet in a broader sense.CHAPTER 1 TITLE OF THE PROJECT: Study of Performance Appraisal System and Its Effectiveness in an Organization INTRODUCTION The history of performance appraisal is quite brief. a basic human tendency to make judgements about those one is working with. as well as about 7 . In the scale of things historical. says Dulewicz (1989).. Its roots in the early 20th century can be traced to Taylor's pioneering Time and Motion studies. As a distinct and formal management procedure used in the evaluation of work performance. But this is not very helpful. appraisal really dates from the time of the Second World War -not more than 60 years ago. it might well lay claim to being the world's second oldest profession! There is.. for the same may be said about almost everything in the field of modern human resources management. ".

fair. informally and arbitrarily. it failed. ethical and legal problems in the workplace. a pay rise was in order. people will tend to judge the work performance of others. If an employee's performance was found to be less than ideal. it seems. On the other hand. The human inclination to judge can create serious motivational. a cut in pay would follow. Without a structured appraisal system. defensible and accurate. Performance appraisal systems began as simple methods of income justification. should provide the only required impetus for an employee to either improve or continue to perform well. Sometimes this basic system succeeded in getting the results that were intended. if any." Appraisal.oneself. naturally. including subordinates. there is little chance of ensuring that the judgements made will be lawful. That is. 8 . is both inevitable and universal. In the absence of a carefully structured system of appraisal. If was felt that a cut in pay. or a rise. if their performance was better than the supervisor expected. The process was firmly linked to material outcomes. Little consideration. appraisal was used to decide whether or not the salary or wage of an individual employee was justified. was given to the developmental possibilities of appraisal. but more often than not.

the potential usefulness of appraisal as tool for motivation and development was gradually recognized. As a result. the traditional emphasis on reward outcomes was progressively rejected. began from that time. Pay rates were important. 9 . yes. In the 1950s in the United States. early motivational researchers were aware that different people with roughly equal work abilities could be paid the same amount of money and yet have quite different levels of motivation and performance. It was found that other issues. could also have a major influence. but they were not the only element that had an impact on employee performance. such as morale and self-esteem. These observations were confirmed in empirical studies.For example. The general model of performance appraisal. as it is known today.

that usually takes the form of a periodic interview (annual or in which the work performance of the subordinate is examined and discussed. or in extreme cases. By the same token. the appraisal results are used to identify the better performing employees who should get the majority of available merit pay increases. with a view to identifying weaknesses and strengths as well as opportunities for improvement and skills development.Modern Appraisal Performance appraisal may be defined as a structured formal interaction between a subordinate and supervisor. appraisal results are used to identify the poorer performers who may require some form of counseling. bonuses and promotions. either directly or indirectly. to help determine reward outcomes. 10 . demotion. In many organizations -but not all -appraisal results are used.) Whether this is an appropriate use of performance appraisal -the assignment and justification of rewards and penalties -is a very uncertain and contentious matter. (Organizations need to be aware of laws in their country that might restrict their capacity to dismiss employees or decrease pay. That is. dismissal or decreases in pay.

At the other extreme.Controversy. Controversy Few issues in management stir up more controversy than performance appraisal. management commentators. There are those. there are many strong advocates of performance appraisal. 1990). psychometricians -who have expressed doubts about the validity and reliability of the performance appraisal process. While all endorse the use of performance appraisal. who believe that performance appraisal has many important employee development uses. the reward. but scorn any attempt to link the process to reward outcomes -such as pay rises and promotions. 1990.linked process is perceived as 11 . there are many different opinions on how and when to apply it. for example). Some have even suggested that the process is so inherently flawed that it may be impossible to perfect it (see Derven. This group believes that the linkage to reward outcomes reduces or eliminates the developmental value of appraisals. Rather than an opportunity for constructive review and encouragement. the most crucial aspect of organizational life" (Lawrie.. There are many reputable sources -researchers. Some view it as potentially ". for instance.. Between these two extremes lie various schools of belief.

there is a strong rival argument which claims that performance appraisal must unequivocally be linked to reward outcomes. they knew that their next pay rise or a much-wanted promotion was riding on an appraisal result? Very likely.judgmental. and are typically in a direct subordinate-supervisor relationship. The result can be resentment and serious morale damage. Suggesting that a subordinate needs to brush up on certain work skills is one thing. Such reluctance is not difficult to understand. many people would deny or downplay their weaknesses. Appraisers often know their appraisees well. soured relationships and productivity declines. in that situation. They work together on a daily basis and may. how many people would gladly admit their work problems if. mix socially. For example. Many appraisers feel uncomfortable with the combined role of judge and executioner. Nor is the desire to distort or deny the truth confined to the person being appraised. at times. The advocates of this approach say that organizations must have a process by which rewards -which are 12 . leading to workplace disruption. On the other hand. at the same time. punitive and harrowing. giving an appraisal result that has the direct effect of negating a promotion is another.

Such findings are a serious challenge to those who feel that appraisal results and reward outcomes must be strictly isolated from each other. and feel more satisfied with it. The Link to Rewards Recent research (Bannister & Balkin. appraisees may suspect that they are not being told the whole truth. Rather than feeling relieved. It has also been claimed that appraisees themselves are inclined to believe that appraisal results should be linked directly to reward outcomes -and are suspicious and disappointed when told this is not the case. are part 13 . Performance appraisal -whatever its practical flaws -is the only process available to help achieve fair. when the process is directly linked to rewards. or that the appraisal process is a sham and waste of time. and frank communication with them about their performance. There is a critical need for remunerative justice in organizations. 1990) has reported that appraisees seem to have greater acceptance of the appraisal process. There is also a group who argues that the evaluation of employees for reward purposes. decent and consistent reward outcomes.not an unlimited resource -may be openly and fairly distributed to those most deserving on the basis of merit. effort and results.

The performance appraisal is a major tool for identifying deficiencies in individuals. In many organizations. Finally it can be used as a criterion against which selection devices and development management's programs reward are and validated. promotion. 14 . The practice of not discussing reward issues while appraising performance is. say critics. it can be used as a basis for reward allocation. Second. and other rewards are determined by their performance evaluation. Decision as to who gets salary increase. First. this inconsistency is aggravated by the practice of having separate wage and salary reviews. in which merit rises and bonuses are decided arbitrarily. and often secretly. punishment As a key input into decision. performance appraisals can motivate or de-motivate employees.of the basic responsibilities of management. based on inconsistent and muddled ideas of motivation. these appraisals can be used for identifying areas where development efforts are needed. by supervisors and managers. There are basically three purposes to which performance appraisal can be put.

Employees can be appraised against 1.Three different approaches exist for doing appraisals. Objectives 15 . Relative standards 3. Absolute standards 2.

PERFORMANCE MANAGEMENT Since organisations exits to achieve goals. which require sustained commitment. the continued poor performance of employees who are not meeting performance standards and a loss of commitment by employees. The cost of failure to provide such feedback may result in a loss of key professional employees. Performance system is fundamentally. the myth that the employee know what. the degree of success that individual employees have in reaching their individual goals is important in determining organisation effectiveness. they are doing without adequate feedback from management can be an expensive fantasy. in sum. a feed back process. 16 .

2. Initiate action 17 . 3. 4. 6. Establishing Performance Standard Communicate Performance expectations to employees Measure actual performance Compare actual performance with standards Discussion with the employees and identification development programs to bridge the gap.THE APPRAISAL PROCESS 1. 5.

d) The performance system can be used as a criterion against which selection devices and development programs are validated. To provide information to employees and managers for use in making . a) Appraisals provide feedback to employees and help the. work related decisions. c) Appraisal serve as a key input for administering a formal organisation reward and punishment system.THE PURPOSE OF APPRAISING PERFORMANCE In general the appraisal systems serve a two fold purpose 1. 18 . To improve the work performance of employees by helping them realize and use their full potential in carrying out their firms mission. b) It helps management spot individuals who have specific skills so that their promotions/transfer are in line with organizational requirements. More specifically appraisals serve the following purposes. 2. "' management identify the areas where development efforts are "' needed to bridge the gaps thereby serving as vehicles for personal " and career development.

REQUIREMENT OF THE PERFORMANCE MANAGEMENT SYSTEM. subordinates) may see the same individuals job performance very differently. appraisals made by raters working independently of one another should agree closely.g. sensitive and reliable we assume the resulting judgement are valid as well. For any given employee. In this contact it refers to consistency of judgement. peers. Reliability: The foremost requirement of a sound system is reliability. each rater must have an adequate opportunity to observe what the employee has done and the condition under which he or she has done it. To provide reliable data. But raters with different perspective (e. By making appraisal system relevant. supervisors. 19 .

many organisations do not put much effort into garnering the front end support and participation of those who will use the appraisal system.Acceptability: In practice. 20 . Such a method does not exist. Practicality: This implies that appraisal instruments are easy for managers and employees to understand and to use. personnel specialists have searched for the 'Perfect. appraisal method as if it were some kind of miraculous cure for many pitfalls that plague organisations. Factors such as timing and frequency are no less important. those who will use them. acceptability is the most important requirement of all. For years. Both technical and human issues are involved. In tommorrow's world of work far more emphasis needs to be placed on process issues. Unfortunately. It is important to enlist the active support and cooperation of subordinates by making explicit what aspects of job performance they will be evaluated on. Neither can be overemphasized at the expense of the other. for it is true that human resources program must have the support of. Ultimately it is management's responsibility to define as clearly as possible the type and level of job behaviour desired of employees. In sum performance appraisal is a dialogue involving people and data.

WHO SHOULD EVALUATE PERFORMANCE? The most fundamental requirement for any rater is that he or she has an . how well he communicates. 21 . the immediate supervisor may observe a subordinate's actual job performance rarely (and indirectly thru written reports). Subordinates know first hand the extent to which the supervisor actually delegates. This suggest several possible raters. Here judgement of peers play important role. the immediate supervisor is probably best able to relate the individual's performings to department and organisationalobjectives. In some jobs such as outside sales. He is probably the most familiar with the individual's performance and in most jobs has had the best opportunity to observe actual job performance. law enforcement and teaching. However. there is a danger of potential bias. Subordinates: Appraisal by subordinates can be useful input to the immediate development. adequate opportunity to observe the rates job performance over a reasonable period of time. the type of leadership he has and the extent to which he or she plans and orgamses. Further more. The immediate supervisor: Generally appraisal is done by this person.

on the other it tends to be more lenient.Self appraisal: On one hand it improves the rate's motivation and moral. The evidence on the accuracy of self assessment is fairly complex. less variable and biased. Some companies have gone step ahead in taking feedback from the customers and integrating it into the performance management process. In industry it is seen that feed back/ input is taken from various sources -Peers. 22 . superiors etc. subordinates.

output Review performance against the key objectives In this model job expectations are defined in terms of what results have to be achieved. This model doesn't have a long term focus and can't be used for employee development and career path planning.APPROACHES TO PERFORMANCE MANAGEMENT The traditional approach: The one dimensional model The Job Define what results have to e achieved Performance contact Define a set of key objectives against the accountabilities Accountabilities i.e. 23 .

and other rewards are determined by their performance evaluation. the performance appraisal can be used as a criterion against which selection devices and development programs are validated. if output is a given. consumed to get that output results in greater efficiency.A satisfactory performance implies doing a job effectively and efficiently. Decisions as to who gets salary increases. Yet productivity itself implies both concern for effectiveness and efficiency. There are basically three purposes to which performance appraisal can be put. Management needs to spot those individuals who have specific skill or knowledge deficiencies. First. Effectiveness refers to goal accomplishment. 24 . The performance appraisal is a major tool for identifying these deficiencies. these appraisals can be used for identifying areas where development efforts are needed. Similarly. promotions. the more efficient the employees. disruptions. The greater the output for a given input. Second. Finally. Efficiency evaluates the ratio of inputs consumed to outputs achieved. it can be used as a basis for reward allocations. with a minimum are degree of employee when -created they are Employees performing well productive.


1. Objective of the study This project aims at studying the system of performance appraisal and its effectiveness in an organisation. Performance appraisal is the most significant and indispensable tool for the management as it provide useful information for decision making in area of promotion and compensation reviews. Thus broad objectives of the study includes: • To know the present system of performance appraisal • To know the extent of effectiveness of the appraisal system

To identify and know the area for improvement system


Sample of the study

The population covered for the present study consisted of employee belonging to supervisory and the level above. For the purpose of this study, survey covered the employee of

VODAFONE falling under supervisor and the level above.


The study covered a sample of 100 employee belonging to supervisory level and above.


Methodology of the project

The project work has been carried out in three stages, a structured questionnaire with objective and question was communicated tested and finalise. During the second stage, the questionnaire was administered to the employees at Vodafone. by contacting them. The work relating to data entry compilation, data analysis and report writing constituted the third stage. Interview index was also used at some places to get information on the project subject. The details of the methodology adopted are presented below:

The Questionnaire Keeping in view the objective of the study, questionnaire was designed and tested on few employees. After getting the proper response and sanction from the concerned department the

questionnaire was finalised.

Response to Questionnaire In all 96 questionnaire were given to employees falling in the


category of supervisors and above. Out of which 48 could be collected back duly completed. The researcher individually

contacted the employees to get response on the questionnaire. Data entry and analysis It has been an uphill task to enter the enormous data received through the questionnaire which consisted nearly 20 questions. Resgonse to the descriptive questions though very few but was valuable for the purpose of study. Hence these were further structured in time with the system adopted for compilation and data analysis. Limitations Many employees gave guarded answers to some crucial questions. Some of them did not fill the questionnaire due to lack of time Response could not be collected from the total sample selected. Some of the questionnaire could not be completed due to reasons other than time factor. The confidentiality of the system created some problem in getting information.



following approval by the shareholders in General Meeting. organized by year: 2007 Vodafone agrees to acquire Tele2 Italia SpA and Tele2 Telecommunication Services SLU from Tele2 AB Group. (October) Vodafone announces completion of the acquisition of Hutch Essar from Hutchison Telecommunications International Limited. approximately 20% of the company's capital was offered to the public in October 1988. on 28 July 2000. Key milestones in the development of Vodafone can be found in the following sections. It was fully demerged from Racal Electronics Plc and became an independent company in September 1991.Chapter 3 ORGANISATION PROFILE . (May) 30 . Following its merger with Air Touch Communications. Vodafone over the years As Vodafone was formed in 1984 as a subsidiary of Racal Electronics Plc. reverted to our former name. at which time it changed its name to Vodafone Group Plc. Vodafone Group Plc. Inc. we changed our name to Vodafone Air Touch Plc on 29 June 1999 and. Then known Racal Telecom Limited. (‘Air Touch’).

(February) Vodafone announces agreements with both Microsoft and Yahoo! to bring seamless Instant Messaging (IM) services to the mobile which can be accessed from both the PC and mobile handsets. You Tube agrees to offer Vodafone customers specially rendered You Tube pages on their mobile phones. interactive radio service streamed to 3G phones and PCs. 31 . Vodafone reaches 200 million customers (January) 2006 Sale of 25% stake in Switzerland's Swiss COM (December) Sale of 25% stake in Belgium's Proximus. (August) The number of Vodafone lives! Customers with 3G reached 10 million in March 2006. 3G broadband through HSDPA launched offering faster than 3G speeds. With MySpace. Vodafone’s partner in Kenya announces the launch of M-PESA. (February) Vodafone signs a series of ground-breaking agreements which will lead to the mobilizing of the internet. Launch of mobile TV capability and Vodafone Radio DJ. With eBay. (February) Vodafone agrees to buy a controlling interest in Hutchison Essar Limited. Vodafone announces it is to offer the new eBay mobile service to customers. an innovative new mobile payment solution that enables customers to complete simple financial transactions by mobile phone. which offers a personalized. (February). Vodafone announces its intention to develop a location-based version of Google Maps for.com Vodafone announces an exclusive partnership to offer Vodafone customers a My Space experience via their mobile phones. We acquired Telsim Mobil Telekomunikasyon Hostetler (Turkey) in May 2006. Japan business sold to Softbank. a leading operator in the fast growing Indian mobile market. With Google.Safaricom.

Verizon Wireless and Vodafone co-operate on laptop e-mail. Best Consumer Wireless Application or Service and Best Television or Broadcast Commercial for its global consumer service. Vodafone live! attracts 1 million customers in its first six months. Vodafone live! with 3G launched in 13 markets (November). won the Best Wireless Handset Award for the Sharp Corporation. Arums Sarin succeeds Sir Christopher Gent as Chief Executive. (Czech Republic) (May). internet and corporate applications access for the US and Europe. Sir John Bond succeeds Lord MacLaurin as Chairman. Hong Kong and Luxembourg. (Romania) and Oscar Mobile a. We have 14 Partner Networks with new agreements in Cyprus. Launch of Vodafone Simply. 32 .‘Make the most of now’ global marketing campaign launched. the Sharp GX10. a voice roaming price plan that provides customers with greater price clarity when using mobile voice services abroad (May). we won the mobile industry's most prestigious awards in two categories. Vodafone live! Our premium handset for Vodafone live!. France. 2004 We launched our first 3G service in Europe with Vodafone Mobile Connect 3G/GPRS data card.A. 2003 At the GSM Association Awards Ceremony in Cannes. Introduction of Vodafone Passport.c. 2005 We completed the acquisition of MobiFon S. a new easy-to-use service for customers who want to use voice and text services with minimum complexity (May).

we announce the launch of Vodafone live!. Eircell. a new consumer proposition. laptops or PDAs over GPRS. a new business proposition. We introduce instant messaging to our networks. calendar and other business specific applications whilst on the move. First global communications campaign launched in August. In November. guided by the Group Social Investment Policy. each version asking the question. Italy and Germany. In October. 33 . online and outdoor media. The service gives business customers an easy way to connect to their corporate LAN to access e-mail. cinema. The Vodafone Group Foundation is launched. Customers are able to seamlessly access services such as corporate e-mail. 2001 We acquire Ireland's leading mobile communications company. intranet and personalized information on their mobile phones. Vodafone and China Mobile (Hong Kong) ltd (CHMK) sign a 'strategic alliance agreement'. The campaign features TV. with plans to contribute £20 million to community programmers. Vodafone Remote Access is launched as part of Mobile Office. The trial enables customers to purchase physical and digital goods using their mobile phone. a faster and more efficient way to communicate using text messages via SMS or WAP. The Group completes the acquisition of a 25% stake in Swisscom Mobile.2002 We trial our global mobile payment system in the UK. We launch the first commercial European GPRS roaming service. and Mobile Office. 'How are you?'. print.

We make the word's first 3G roaming call (between Spain and Japan). marketing and advertising international roaming products and services to international travellers and corporate customers. Vodafone Essar provides 2G services based on 900Mhz and 1800Mhz digital GSM technology . The agreement is the first of its kind in the mobile industry and means Vodafone and TDC Mobil will cooperate in developing.minimalist look .Sep 19 2007. terms are agreed with the Supervisory Board of Mannesmann by which Mannesmann would become a part of the Vodafone community. Managing Director of Vodafone.Hutch will be transitioned to Vodafone across India .The popular and endearing brand .this marked a significant chapter in the evolution of Vodafone as a dynamic and ever growing brand . Vodafone group ‘s communication company completed the acquisition of Hutch Arun 34 .Vodafone the world leading international mobile communication company has fully arrived in India .Vodafone Essar announced today that the Vodafone brand will be launched in India from 21st sep onward . Vodafone Essar is a cellular operator in India that covers16 telecom circles in India .the name of the company .First Vodafone Partner Agreement with TDC Mobil A/S.offering voices and data services in 16 of the countries 23 license . Verizon Wireless is launched in May.the company is often praised for its aware winning advertisement which all follow a clean .the marketing brand used is simply Vodafone . The agreement to acquire Mannesmann AG receives European Commission clearance on 12 April 2000. Denmark's leading mobile operator. 2000 On 4 February.its offers both prepaid postpaid GSM cellular phone coverage through out India and is especially strong in the metros. the combination of Vodafone AirTouch's and Bell Atlantic's US cellular.Asim Ghosh . The transaction almost doubles the size of the Vodafone Group. PCS and paging assets.Vodafone the world leading mobile tel Essar in may 2007 &company was formally renamed Vodafone Essar in July 2007 .

the brand was marketed as Hutch . which is the owner of the remaining 33%.Hutchison .the whole company was valued at U S D 18.8 billion . piping Reliance communication.reflecting the of its previous owner .after getting the necessary government approvals with regard to the acquisition of a majority by the Vodafone group .the transaction closed on 8 may 2007 In December 2006 Hutch Essar re launched the “Hutch” brand nation wide .The company was rebranded as Vodafone Essar. share in India and operator 16 circle 35 .1 billion.on 11feb 2007 Vodafone agreed to acquired the controlling interest of 67% held by CheungKong holding in hutch Essar for US$11.Sarin is visiting in India even as the British operator bid for a majority stake in India mobile services operator Hutchison Essar has run into tough competition Vodafone Essar is owned by Vodafone 67%Essar group 33%.consolidating its services under a single identity .36 million subscribers and 17.04% market.the company used to be named Hutchison Essar .the companioned into agreement with NTT Do Co Mo to launch i-mode mobile internet service in India during 2007 . Hinduga group and Essar group. Vodafone have both Prepaid& Postpaid &have a15.


The assessment of how successful employees have been at meeting their individual goals. • Second. • Finally the performance appraisal can be used as a criterion 37 . PURPOSE There are basically three purposes to which performance appraisal can be put. these appraisals can be used for identifying areas where development efforts are needed. the degree of success that individual employees have in reaching their individuals goals is important in determining organizational effectiveness. becomes a critical part of HRM. it can be used as a basis for reward allocations. Management needs to spot those individuals who have specific skill or knowledge deficiencies. promotions. This leads us to the topic of performance appraisal. The performance appraisals is a major tool for identifying these deficiencies.Chapter 4 PERFORMANCE APPRAISAL Since organisation exist to achieve goals. therefore. • First. Decisions as to who gets salary jncreases. and other rewards are determined by their performance evaluation.

that our selection process is successful in differentiating satisfactory performers from unsatisfactory performers. for example. It is one thing to say.against which selection devices and development programs are validated. 38 .

HE APPRAISAL PROCESS Established performance standard Communicate performance expectations to employee Measure actual performance Compare actual performance with standards Discuss the appraisal with the employees. initiate the corrective action The appraisal process begins with the establishment of performance standards. Too often. These should have evolved out of job analysis and the job description discussed under human resource planning. If necessary. these 39 . These performance standards should also be clear and objective enough to be understood and measured.

of To performance. We should be concerned with how we measure and what we measure. And what we measure determines. it is necessary to acquire information about it. accurate appraisal to the subordinate and then have the subordinate accept the appraisal in a constructive manner. Satisfactory feedback censures that the information communicated by the manager has been received and understood in the way it was intended. The third step To in the appraisal what in the measurement performance. to a great extent. since the selection of the wrong criteria can result in serious dysfunctional consequences. One of the most challenging tasks facing managers is to present an . What we measure is probably more critical to the evaluation process than how we measure. Communication only takes place when the transference has taken place and has been received and understood by the subordinate.standards are articulated in some such phrase as "a full day's work" or "a good job". what people in the organization will attempt to excel at. Therefore feedback is necessary from the subordinate to the manager. determine actual determine what actual performance is. 40 .

The final step in the appraisal is the initiation of corrective action when necessary. One is immediate and deals predominantly with symptoms. Immediate corrective action often described as "putting out fires. Corrective action can." whereas basic corrective action gets to the source of deviation and seeks to adjust the difference permanently. very important. be of two types. The other is basic and delves into causes. on their subsequent performance. 41 . Immediate action corrects something right now and gets things back on track.Appraising performance touches on one of the most emotionally charged activities the assessment of another individual's contribution and ability. The impression that subordinates receive about their assessment has a strong impact on their self-esteem and.


The main objective of this performance appraisal system is to evaluate the performance. management by objectives. Employees are evaluated by how well they accomplish a specific set of objectives that have been determined to be critical in the successful completion of their job. the organization's overall objectives are used as guidelines from which departmental and individual objectives are set. action planning. promote their employees and to arrange for their various training programmes if they require for enhancing their skills in their respective areas and in contribution enhancement. and periodic reviews.control. In action planing. This approach is frequently referred to as . the means are determined for achieving the ends established in goal setting. 43 .. Management by objectives is a process that converts organization~l objectives into individual objectives. realistic plans are developed to attain the objectives. In goal setting. That is. It can be thought of as consisting of four steps: goal setting. self.Chapter 5 PERFORMANCE APPRAISAL SYSTEM IN VODAFONE In Vodafone they have the system of performance appraisal of their employees.

some evaluator~ mark high and others low. though 44 .stated. Finally. that is. giving the individual a lower appraisal. Vodafone uses very constructive its performance Its appraisal evaluation process is while on evaluating employees. The former is referred to as positive leniency error and the latter as negative leniency error. Company set goals to its employee by properly reporting with its employees and then evaluating them upto what extent it has been achieved and if there is failure in reaching the target what are the causes or reasons behind it. with periodic progress reviews. but sometimes over estimation of target brings about a description in the evaluating criteria. corrective action is initiated when behaviour deviates from the standards established in the goal-setting phase.Self-control refers to the systematic monitoring and measuring of performance. rated higher than it actually should. a negative leniency error understates performance. Every evaluator has his or her own value system which acts as a standard against which appraisals are made. As such there is no scope of error as far as the Vodafone company is concerned. Similarly. Thus. Relative to the true or actual performance an individual exhibits. based quantitativewise and objectivewise. an individual's performance becomes over. When evaluators are positively lenient in their appraisal.

If the employee performs in such a way as to collect 3 consecutive excellent performance into his/her credit. Good -If the performance evaluated by the management turns out to be good. there are four outcomes possible: a. he/she gets promoted. b.chances are less. positive leniency errors have been stated to be committed. If the employee performs in such a way as to collect 3 consecutive outstanding performance into his/her credit) he / she gets promoted. d. Excellent -If the performance evaluated by the management turns out to be excellent. The management sends the employee to the training programme to improve his/. Below average -If the performance evaluated by the management turns out to be below average.her skill to perform form. Outcome of Performance Appraisal As far as Vodafone company is concerned. c. And. if the employee collects 3 below average to his/her credit. Outstanding -If the performance evaluated by the management turns out to be outstanding. then he/she dismissed 45 .

46 . the performance appraisal system is carried out annually.Duration of Appraisal System The time constraints enables the employee to show or project his/her capabilities in term of performance as per the duration allowed. In Vodafone.

in term bring out the highlights of the self assessment programme. It has helped some of the employees in motivating themselves while those who felt bad were thoroughly communicated and all the confusion and failure part were discussed with employees.Feedback The company provides the annual feedback to its employees and thus. 47 . This enables the better communicaiton between the management and employees ad thus. Response There are mixed responses from the feedback by the employees. helps in promoting the business future.


Chapter 6 ANALYSIS AND INTERPRETATION OF DATA After collecting the data on "Performance Appraisal System" data was Analyzed and interpreted. The period of experience required for filling a higher post departmentally varies from 3-5 years. belonging and security. which commands better pay/wages. 5 years experience for promotion to managerial staff and 3 years 49 . Promotions A promotion may be defined as an upward advancement of an employee in an organisation to another job. They also afford an opportunity for greater self-actualizing action through more varied and challenging assignments. The guidelines for departmental promotion in are same for male and female employees. hours of work and facilities etc. The promotion policies differ from an organisation to another. better status / prestige and higher opportunities / challenges and responsibility. a better working environment. The various topics covered for analysis and interpretation of data are: ) 1. Promoters have a salutary effect on the satisfaction of the promoted person's need for esteem.

The other area of promotion apart from seniority are merit and fitness. Though these guidelines are not in a written format the supervisor and manager get it at the time of appraisal from the personnel department. 50 .experience for promotion to Junior Management staff is needed.

16 29. 60 50 40 30 20 10 0 Yes No Can't Say 16 28 52 Series1 51 . The responses are given below: N=96 Response Yes No Can't say Number 16 52 28 Percentage 16. Every employee need to be communicated about the existing promotion policy. However there is confusion among the employee as these guidelines are not being explained time to time.As per the guidelines from the personnel department employees are to be promoted accordingly. Respondents were asked whether the promotion is well defined in the organisation. it can be seen that 30% agree that promotion is well defined in the organisation.66 54.16 From the above table. However 54% were not able to say it as there is lack of information about the promotion policy. many are not aware of the existing promotion policy in the organisation.

66 0 56 58. 52 .83 Majority suggested for no change in the policy. The responses were as given below: Response Merit not recognized Does not define career plan Not integrated with business Heterogeneity within policy for different position Number 20 26 0 Percentage 20.83 16. It seems they are satisfied with the current policy.Respondent were also asked to suggest any change in the policy.

The responses were as given below: Response Yes No Can't say No response Number 44 12 36 4 Percentage 45.83 12. does it help in aligning individual goal with those of the organisation. 45 40 35 30 25 20 15 10 5 0 44 36 12 4 Yes No Can't Say No response Series1 53 .16 Here the response from the supervisor were 45.5 37.Aligning goal Respondent were asked about the present system.5 4.83% for the factor that it help in aligning their goal with those of organisation.

Career Progress Career progress is something which is continuous. It is also the responsibility of the employer to help him/her to identify the career opportunity. Career planning means helping the employee plan his career in terms of his capabilities with the context or organisational needs. it is necessary to develop in manager. Some expectations of opportunities for the future in order to keep their motivation high. with the input from organisation in term of training. Individual. make choices and develop his/her career and provide opportunities for career planning and succession planning 54 . From the organisation's point of view. In today's changing scenario this has to be followed in every organisation so that an individual make progress in the career adding value to himself and the organisation. Career advancement is the most motivating factor when employee aspire for the advancement of his career and for better opportunities to use his/her talents. after becoming aware of some of his/her capabilities and career and development opportunities chooses to develop himself/herself in a direction that improves his/her chances of being able to handle new responsibilities. Respondent were asked about the current system helping in their career progress. feedback and counselling.

83 37.5 Here only 46% of the respondent gave response that it does not while 38% gave response that there is no career development plan at all. 50 40 30 20 10 0 Yes 16 44 36 Series1 No Can't Say 55 .Question asked was as follows: Are the issues like career planning and succession planning a part of companys policy The responses to the above were as given below: Response Yes No Cant say Number 16 44 36 Percentage 16.66 45.

56 .66 25 8. The responses were as given below: Response Rarely On a few occasion Sometimes Often Almost always Number 24 40 24 8 Nil Percentage 25 41. Feedback provides for the area of improvement. Respondent were asked about the frequency of feedback based on their performance.Feedback Providing feedback playa constructive role. It helps the employee know his/her weakness and strength. The frequency has to increase both from the individual and organisation point of view to keep the individual motivated for work in line with the organisational expectation.34 Nil 41 percent responded that feedback is provided though on a few occasion.

40 35 30 25 20 15 10 5 0 Rarely On a few Som im et es occasion Oft en Alm ost always Remedial measure Based on the performance the remedial measures are taken to do away with weakness if any and build on the strength and add to the existing capability 57 .

45 40 35 30 25 20 15 10 5 0 J ob rot ion Sent to CounselledAny ot at her t raining program None 58 .5 Nil Nil Here the response were both for job rotation and training programme. During the course it was felt that more training input is to be provided to the employee to overcome the weakness and improve upon the existing capability of the employee.83 41.Response on the remedial measure were as given below: Response Job rotation Sent to training programme Counselled Any other None Number 44 40 12 Nil Nil Percentage 45.66 12.

15 14.25 29.PROMOTION POLICY AND PERFORMANCE APPRAISAL SYSTEM Respondent were asked whether the promotion policy is linked with the performance appraisal system The responses were as given below: Response Yes No Cant say Number 54 28 14 Percentage 56.58 Majority response were that promotion policy is linked with the performance appraisal system. 60 50 40 30 20 10 0 54 28 14 Series1 Yes No Can't Say 59 .

 Quality products and services and improved product proposition.  Inventory management.  Lack of feedback.  Strategy oriented and better geographic balances. and procurement processes.  Better brand image.  Strong competition. OPPORTUNITIES  Branch expansion for rapid growth  Increase focus on value creation  Improve shareholders return  Broadening of the demographic base  Tie up with MNC’s  Integrated sales and service approach THREATS  Competitive products and offers.SWOT ANALYSIS STRENGTHS  Strong customer oriented and high performance. 60 . WEAKNESS  Paper compilation of the financial reports (stock reports).


That the promotion policy followed differs at different position and category. 62 . A uniformity has to be there in the implementation of promotion policy at all levels • The process of performance appraisal followed in Vodafone at the supervisory and above level IS to say not good but of satisfactory level. The employees do not rate it very good • The appraisal outcome has to be used frequently for the purpose of reward on performing well together with the feedback on the performance. • The organization at present doesn't lay career planning and career succession plans.Chapter 7 CONCLUSIONS & SUGGESTIONS Conclusion The analysis and interpretation of data on study of performance appraisal and its effectiveness in an organization led to the following conclusions: • The promotion rule though defined need to be communicated to every employee before appraisal process is done and also justify the promotion as a result of the appraisal. Also when performance goes down employee has to be given feedback and motivated to do better.

• In Vodafone feedback is being provided to the employee though on a few occasion. This is possible when the appraisal is done on the 63 . • More emphasis on training and job rotation as remedial measures. • The mechanism of counseling pre-performance and post performance is not in practice at the organisation in strict term. During. • Performance appraisal in Vodafone is done on an annual basis. just. unbiased in appraising the appralsee. • Training the Appraisee: It is proposed that appraiser be trained for clear understanding of the system and its objective and also counselled to be honest. • Greater clarity has to be has to there in terms of job responsibility. • Factors/traits of evaluation: It is proposed that appraisee evaluated on above factors/traits be given suitable remark or justification for being given different quantitative grade. Suggestions The study undertaken bring some interesting result. fair. the course of study suggestion came from the employee side for the need of counselling.

• Pin point the problem behaviour and make sure the employee is aware of it • Make sure the employee understands the consequences of the problem behaviour. • In the organization. Get employee's commitment to change and make sure he cares about the change • Assistance should be provided to improve poor performance. Make a realistic plan appropriate to the 64 . • Monetary difference between two grades should not be large.basis of the description. it should be motivating in nature. • Consistency is demanded in the promotional policy. • Performance feedback: The performance feedback sessions should be improved which would results in increasing employee motivation to improve performance. performance appraisal is done on an annual basis which should be done Quaterly to make it more effective. It should not change every year. • Performance appraisal system should be made more transparent and rationale. The following could be incorporated.

• Based on the above an open appraisal system is suggested. • In some areas of performance there should be self appraisal and more and more counselling so that employee improve upon weak area and understand what is expected of him/her at the organization level. 65 .behaviour and set a time frame for improvement. • To make sure to review performance time to time • The other change which has to be incorporated at the supervisor and the level above are: • These should be listing down of task undertaken during the last one year and the result achieved.

66 . It promotes result-orientation as it is based on performance rather than on personality based appraisal.In an open appraisal the employee would come together to set the targets. The open appraisal system reduces the whims and fancies of the appraiser. to understand the mutual expectations and support to be provided by the appraiser to the employee for achieving mutually accepted goals/targets. Through this process of setting targets the interpersonal relationship between the appraiser and the employee would improve.

Annexure a) b) Questionnaire Bibliography 67 .

Q. can't say Do you know the objectives of the Performance appraisal system. fortnightly. six-monthly. self-appraisal any other please specify b. d.4. Is the promotional policy well defined in your organization? a.2. Yes Q. If yes kindly specify. c. Q. specify Q. monthly c.1.3. b. annually On what basis is the performance appraisal done.5 Who appraises you? a. Pl. forced choice distribution method. any other. c. How often the performance appraisal form is filled or Performance Appraisal is done. a. e. a. not fixed. seniority cum merit.QUESTIONNAIRE TO STUDY PERFORMANCE APPRAISAL SYSTEM Q. appraisal committee. e. seniority only. e. b. b.6. merit only d. Q. What methods are being used for performance appraisal a. your immediate supervisor 360 degree appraisal. d. No c. merit cum seniority b. essay method 68 .

no 69 .7. yes b.8.9. yes b. kindly comment.c. Q. cant say d.11. critical incident any other.I0 Does the system help you in aligning your goals with those of the organization. kindly specify In your opinion does it identify the training needs? a. method e. no c. Q. no c. can't say. d. no c. Is the promotional policy linked with the performance appraisal system a. can't say Q. yes b. Are you a part of the appraisal committee a. ranking method. Are the issues like career planning and succession planning a part of company's policy a. not at all Q. yes b. What role does top management play in the performance appraisal. Q.12. to a large extent b. a. to some extent c. can't say Q.

only when required rarely e. often.Q 13 .14 Does the organization provide counseling after the appraisal.16. never Q. job rotation counseled d. Q. What kind of remedial measures are taken. b. any other. a. Do the employees get the feedback of performance appraisal a. can't say.15. Poor b. trained professionals b. every time. yes. Good d. kindly specify Q. untrained counselors.17. sent to training programmes c. 70 . c. Who does the counseling a. often c. c. never. How do you rate the overall assessment of performance appraisal a. d. a. Satisfactory b. Outstanding e. rarely d. Very good c. e. but not always. always b. can't say Q.

18. Kindly mention Q. Kindly mention Q.21. Suggestion towards improving the performance appraisal system in your organisation 71 .Q.20. For how long have you been working in this organisation Q. What do you feel are the positives in the performance appraisal system in your organization.19 What do you feel are the shortcomings of the performance appraisal system being followed in your organization.

p. New Delhi 2006..G.g.Sultan Chand and Sons.206-210 72 .. C. Human Resource Management.Essentials of Human Resource Management and Industrial Relations. Tata Mc Graw Hills.BIBLOGRAPHY 1) Flippo EdwinB.g. p. Subba. Edition sixth. P. Himalaya Publishing House. 5.10 3) Rao.Edition Second. 1984. New Delhi 2005. 225-230 2) Gupta.35. Personnel management.B. Edition Fifth(Reprint). P.

com 73 .WEB SITES SURFED www.com www.google.indiatimes.com www.msn.

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