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A
Project Report
On
Training undertaken at
Aviva life Insurance Company
Titled
Performance Appraisal
Submitted in partial fulfillment for the award of degree of
MASTER OF BUSINESS ADMINISTRATION

Rajasthan Technical University, Kota (Raj.)

Submitted By Submitted To
KEHA KOMAL Mrs. Deepti Hariramani
MBA III Sem Asst. Professor

ARYA COLLEGE OF ENGINEERING & I.T.
KUKAS

Session 2011-2013
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PREFACE
As a part of course curriculum for award of MBA, we have to undergo
practical training for minimum 45 working days after the 2
nd
sem. Prac-
tical training forms an important component of any professional course.
The institute where we pursue our studies cannot provide the practical
knowledge on all aspects of learning. Often the study of a subject is
said to be incomplete until the student has been exposed to its practical
aspects. The theoretical studies provide the pools of knowledge where
as the practical application makes the student agile and competent.
The underlying object of training is to provide the student with practical
aspect of the organizational working and corporate environment. Such
type of training helps the students to work in a real industrial environ-
ment, to gain practical knowledge and to build confidence. The idea &
intention of taking training in this field to came up to me because of
tremendous changes and scope in insurance services. As a part of this
trend, I took my training at: AVIVA LIFE INSURANCE, JAIPUR. This
project deals with analysis of various Insurance plans such as Protec-
tion, Investment, Pension Saving Plans Of AVIVA. Even though I tried
to make efforts at my best there may be many mistakes, shortcoming in
my project report which I hope will be forgiven by the reader .This re-
port served as a means to share my personal experiences while work-
ing on this project which provided me the platform where I was face to
face with practical aspects of theoretical knowledge gained so far.



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ACKNOWLEDGEMENT
I would like to express my deep of gratitude to Aviva Life Insurance
Company for allowing me to undertake this project. I would like to take
this opportunity to thank Raj Utpal for providing me with an opportunity
to work for Aviva Life Insurance Company. I am also desirous of men-
tioning my profound indebtedness to Mrs. Deepti Hariramani, Faculty
member, Arya college of engineering and technology, for the valua-
ble advice, guidance, precious time and support she offered. Last but
not the least , I would also like to thank all the respondents forgiving me
their precious time, relevant information and advice without which I
would not be able to complete this project.










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EXECUTIVE SUMMARY
Setting performance standards, observing and providing feedback, and
conducting appraisals enables the Team Leader to achieve the best
results through managing employee performance. To begin the pro-
cess, the Team Leader and the employee collaborates on the devel-
opment of performance standards. The Team Leader then develops a
performance plan that directs the employee's efforts toward achieving
specific results, to support organizational growth as well as the em-
ployee's professional growth. Discussion of goals and objectives
throughout the year provides a framework to ensure that employees
achieve results through One on One and mutual feedback. At the end
of the rating period, the Team Leader appraises the employee's per-
formance against existing standards, and establishes new goals to-
gether for the next rating period. As the immediate supervisor, the
Team Leader plays an important role; his closest interaction with the
employee occurs at this level. There are four key elements in the ap-
praisal system:
1. Set objectives - Decide what the Team Leader wants from the em-
ployees and agree these objectives with them.
2. Manage performance - Give employees the tools, resources and
training they need to perform well.
3. Carry out the appraisal - monitor and assess the employees' per-
formance, discuss those assessments with them and agree on future
objectives.

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CONTENTS
Sr. No.

TOPIC

PAGE NO.
1

INTRODUCTION TO THE INDUSTRY

2

INTRODUCTION TO THE ORGANISATION

3

RESEARCH METHODOLOGY



3.1 TITLE OF THE STUDY



3.2 DURATION OF THE STUDY



3.3 OBJECTIVE OF THE STUDY



3.4 SAMPLE SIZE METHOD OF SELECTING
SAMPLE



3.5 RESEARCH METHODOLOGY



3.6 SCOPE OF THE STUDY



3.7 LIMITATION OF THE STUDY

4

FACTS AND FINDINGS

5

ANALYSIS AND INTERPRETATION

6

SWOT

7

CONCLUSION

8

RECOMMENDATION & SUGGESTIONS

9

APPENDIX


10

BIBLIOGRAPHY

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CHAPTER 1
INTRODUCTION TO THE INDUSTRY










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CHAPTER 1
INTRODUCTION TO INDUSTRY
What is Insurance?
Insurance is a contract between two parties whereby one party called
insurer undertakes In exchange for a fixed sum called premiums, to
pay the other party happening of a certain event. Insurance business is
divided into four classes:
1) Life Insurance
2) Fire Insurance
3) Marine Insurance and
4) Miscellaneous
To get insurance an individual or an organization can approach to an
insurance Company directly, through Insurance Agent of the concerned
company or through Intermediaries. Every asset has a value for its
owner and also for those who are benefited with the existence of that
asset. Insurance is concerned with the protection of economic value of
assets. All of us are interested in the creation of assets because:
i. All assets have values.
ii. They yield income to the owner.
iii. They meet some other needs of the owner.
iv. They may provide satisfaction of some needs and also yield
income to the owner.
Every asset has normally an expected lifetime. During this period, it is
expected to perform and provide income/comfort to the owner. The
owner, being aware of this, plans the things in such a way that by the
time the expected lifetime of the asset expires, he is ready with the
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funds required for its replacement. In this way, he ensures that the val-
ue or income from the asset is not lost. Well, this appears to be a fine
arrangement provided the asset completes its expected lifetime! All as-
sets carry the risk of being destroyed or damaged. But all assets may
not necessarily get destroyed or damaged. Only in a few instances, the
probability turns out to be true and the asset gets actually lost or de-
stroyed by accident or some other unfortunate event before the com-
pletion of its expected lifetime. The owner and those deriving benefits
from the asset will suffer because the arrangement to make available
its substitute is not yet ready. Insurance is helpful in mitigating such
adverse consequences. To sum up, assets are insured; as they are
likely to be lost or made non-functional through an accidental occur-
rence. Insurance does not protect the assets. This means that insur-
ance cannot prevent loss to the assets due to perils. Nor can insurance
avoid the occurrence of the perils. It only compensates, may not be ful-
ly, the economic or financial loss resulting to the asset from such dam-
age or destruction.
Brief History of Insurance
The beginning of insurance business is traced to the city of London. It
started with the marine business. Marine traders, who used to gather at
Lloyds coffee house in London, agreed to share losses to goods during
transportation by ship. Marine related losses included:-
Loss of ship by sinking due to bad weather in high seas.
Goods in transit by ship robbed by sea pirates.
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Loss of or damage to the goods in transit by ship due to
bad weather in high seas. The first insurance policy was is-
sued in England in 1583.
Life Insurance in India
In India, insurance started with life Insurance. It was in the early 19
th

Century when the Britishers on their postings in India felt the need of
life insurance cover. It started with English Companies like The Euro-
pean and the Albert. The First Indian insurance company was the
Bombay Mutual Assurance Society Ltd., formed in 1870. In the wake of
the Swadeshi Movement in India in the early 1900s, quite a good num-
ber of Indian companies were formed in various parts of the country to
transact insurance business. To name a few:: Hindustan Co-operative
and National Insurance in Kolkata; United India in Chennai; Bombay
Life, New India and Jupiter in Mumbai and Lakshmi Insurance in
New Delhi.
Indian Insurance Industry-Introduction
India is the largest democracy in the world having a population more
than one million. It is 5
th
largest in the world in terms of purchasing
power parity (PPP). India GDP growth rate is over 6 percent per year
on average for the last decade and saving rate is around 26 percent of
GDP. Through Indias economic development, it becomes the most lu-
crative insurance markets in the world. Before the year 1999 there
were monopoly of state run Life Insurance Corporation of India (LIC) in
life insurance sector and General Insurance Corporation of India (GIC)
with its four subsidiaries in general sector. In the wake of reform pro-
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cess and passing Insurance Regulatory Development Act (IRDA)
through Indian Parliament in 1999, Indian Insurance was opened for
private companies.
Nationalization of Life Insurance in India
In 1956, life insurance business was nationalized. The government
took over the business of 245 companies (including 75 provident fund
societies) who were transacting life insurance business at that time
Purpose and Need for Insurance
Assets are likely to be destroyed or made non-functional
due to accidental occurrences called perils. Assets can,
therefore, be insured. A few examples of perils are: fire,
floods, breakdowns, lightning, earthquake etc. Perils are
the events. Risks are the consequential losses or damages.



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CHAPTER 2
INTRODUCTION TO THE ORGANIZATION
COMPANY PROFILE
Aviva is UKs largest and the worlds fifth largest insurance Group. It is
one of the leading providers of life and pensions products to Europe
and has substantial businesses elsewhere around the world. With a
history dating back to 1696, Aviva has a 35 million-customer base
worldwide. It has more than 332 billion of assets under management.
In India, Aviva has a long history dating back to 1834. At the time of na-
tionalisation it was the largest foreign insurer in India in terms of the
compensation paid by the Government of India .Aviva was also the first
foreign insurance company in India to set up its representative office in
1995.In India, Aviva has a joint venture with Dabur, one of India's old-
est, and largest Group of companies. A professionally managed com-
pany, Dabur is the country's leading producer of traditional healthcare
products. In accordance with the government regulations Aviva holds a
26 per cent stake in the joint venture and the Dabur group holds the
balance 74 per cent share. With a strong sales force of over 12,000 Fi-
nancial Planning Advisers (FPAs), Aviva has initiated an innovative and
differentiated sales approach to the business. Through the Financial
Health Check (FHC) Avivas sales force has been able to establish its
credibility in the market. The FHC is a free service administered by the
FPAs for a need-based analysis of the customers long-term savings
and insurance needs. Depending on the life stage and earnings of the
customer, the FHC assesses and recommends the right insurance
product for them. Aviva pioneered the concept of Banc assurance in
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India, and has leveraged its global expertise in Banc assurance suc-
cessfully in India. Currently, Aviva has Banc assurance tie-ups with
ABN Amro Bank, American Express Bank, Canara Bank, Centurion
Bank of Punjab, The Lakshmi Vilas Bank Ltd. and Punjab & Sind Bank,
15 Co-operative Banks in Gujarat, Rajasthan, Jammu & Kashmir, Bi-
har, West Bengal and Maharashtra and one regional Bank in Sikkim.
When Aviva entered the market, most companies were offering tradi-
tional life products. Aviva started by offering the more modern Unit
Linked and Unitised With Profit products to the customers, creating a
unique differentiation. Avivas products have been designed in a man-
ner to provide customers flexibility, transparency and value for money.
It has been among the first companies to introduce the more modern
Unit Linked Products in the market. Its products include: whole life (Life
Long), endowment (Life Saver, Easy Life Plus), and child policy (Young
Achiever) single premium (Life Bond and Life Bond Plus), Pension
(Pension Plus), Term (Life Shield), fixed term protection plan (Freedom
Life Plan) and a tax efficient investment plan with limited premium
payment term (LifeBond5). Aviva products are modern and contempo-
rary unitised products that offer unique customer benefits like flexibility
to chose cover levels, indexation and partial withdrawals. Avivas Fund
management operation is one of its key differentiators. Operating from
Mumbai, Aviva has an experienced team of fund managers and the
range of fund options includes Unitised With-Profits Fund and four Unit
Linked funds: - Protector Fund, Secure Fund, Balanced Fund and
Growth Fund. Aviva has 112 Branches in India (including rural branch-
es) supporting its distribution network. Through its Bancassurance
partner locations, Aviva products are available in 378 towns and cities
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across India. Aviva is also keen to reach out to the underprivileged that
have not had access to insurance so far. Through its association with
Basix (a micro financial institution) and other NGOs, it has been able to
reach the weaker sections of the society and provide life insurance to
them. For three consecutive years in 2005, 2006 and 2007, Aviva has
had relatively high scores on the parameters of Credibility, Respect,
Fairness, Pride and Camaraderie in the survey administered by Grow
Talent Company Ltd. along with Great Places to Work Institute, Inc.
and Business World magazine.
Introduction to Appraisal
Once the employee has been selected, trained and motivated, he is
then appraised for his performance. 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 employee and remedy them. Performance Ap-
praisal is a process of evaluating an employee performance in terms of
its requirements. Performance Appraisal can also be defined as the
process of evaluating the performance and qualifications of the em-
ployees in terms of the requirements of the job for which he is em-
ployed, for purposes of administration including placement, selection
for promotions, providing financial rewards and other actions which re-
quire differential treatment among the members of a group as distin-
guished from actions affecting all members equally. A more compre-
hensive definition is: Performance' appraisal is a formal structured sys-
tem of measuring and evaluating an employees job related behaviours
and outcomes to discover how and why the employee is presently per-
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forming on the job and how the employee can perform more effectively
in the future so that the employee organization and society all benefit.
The second definition includes employees behaviour as part of the as-
sessment. Behaviour can be active or passive--do something or do
nothing. Either way behaviour affects job results. The other terms used
for performance appraisal arc: performance rating, employee assess-
ment
Importance and Purpose
Performance Appraisal has been considered as the most significant an
indispensable tool for an organization, for an organization, for the in-
formation it provides is highly useful in making decisions regarding var-
ious personnel aspects such as promotion and merit increases. Per-
formance measures also link information gathering and decision mak-
ing processes which provide a basis for judging the effectiveness of
personnel sub-divisions such as recruiting, selection, training and com-
pensation. Accurate information plays a vital role in the organization as
a whole. They help in finding out the weaknesses in the primary areas.
Formal Performance Appraisal plans are designed to meet three
needs, one of the organization and the other two of the individual
namely:
They provide systematic judgments to back up salary increases,
transfers, demotions or terminations.
They are the means of telling a subordinate how he is doing and
suggesting needed changes in his behaviour, attitudes, skills or
job knowledge. They let him know where he stands with the
Boss.
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Superior uses them as a base for coaching and counselling the
individual. On the basis of merit rating or appraisal procedures,
the main objectives of Employee Appraisal are:
To enable an organization to maintain an inventory of the number
and quality of all managers and to identify and meet their training
needs and aspirations.
To determine increment rewards and to provide reliable index for
promotions and transfers to positions of greater responsibility.
To suggest ways of improving the employee s performance when
he is not found to be up to the mark during the review period
To identify training and development needs and to evaluate effec-
tiveness of training and development programmes.
To plan career development, human resource planning based po-
tentials
PERFORMANCE APPRAISAL STRUCTURE IN THE ORGANIZATION
Summary of the Performance Analysis System
Setting performance standards, observing and providing feedback, and
conducting appraisals enables the Team Leader to achieve the best
results through managing employee performance. To begin the pro-
cess, the Team Leader and the employee collaborates on the devel-
opment of performance standards. The Team Leader then develops a
performance plan that directs the employee's efforts toward achieving
specific results, to support organizational growth as well as the em-
ployee's professional growth. Discussion of goals and objectives
throughout the year provides a framework to ensure that employees
achieve results through One on One and mutual feedback. At the end
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of the rating period, the Team Leader appraises the employee's per-
formance against existing standards, and establishes new goals to-
gether for the next rating period. As the immediate supervisor, the
Team Leader plays an important role; his closest interaction with the
employee occurs at this level. There are four key elements in the ap-
praisal system:
1. Set objectives - Decide what the Team Leader wants from the em-
ployees and agree these objectives with them.
2. Manage performance - Give employees the tools, resources and
training they need to perform well.
3. Carry out the appraisal - monitor and assess the employees' per-
formance, discuss those assessments with them and agree on future
objectives.
4. Provide rewards/remedies - Consider pay awards and/or promo-
tion based on the appraisal and decide how to tackle poor performance
Performance Standards
How does the Team Leader decide what's acceptable and what's un-
acceptable performance? The answer to this question is the first step in
establishing written standards. Performance expectations are the basis
for appraising employee performance. Written performance standards
let the Team Leader to compare the employee's performance with mu-
tually understood expectations and minimize ambiguity in providing
feedback.
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Having performance standards is not a new concept; standards exist
whether or not they are discussed or put in writing. When the Team
Leader observes an employee's performance, he usually makes a
judgment about whether that performance is acceptable. Standards
identify a baseline for measuring performance. From performance
standards, the Team Leader can provide specific feedback describing
the gap between expected and actual performance.
Guiding Principles
Effective performance standards:
Serve as an objective basis for communicating about per-
formance.
Enables the employee to differentiate between acceptable
and unacceptable results.
Increase job satisfaction because employees know when
tasks are performed well.
Inform new employees of your expectations about job per-
formance

The Team Leaders in association with the Project Manager write per-
formance standards for each key area of responsibility on the employ-
ee's job description. The employee actively participates in its develop-
ment. Standards are usually established when an assignment is made,
and they are reviewed if the employee's job description is updated. The
discussions of standards include the criteria for achieving satisfactory
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performance and the proof of performance (methods the Team Leader
will use to gather information about work performance).

Characteristics of Performance Standards
Standards describe the conditions that must exist before the perfor-
mance can be rated satisfactory. A performance standard should:
Be realistic, in other words, attainable by any qualified,
competent, and fully trained person who has the authority
and resources to achieve the desired result
Describe the conditions that exist when performance meets
expectations
Be expressed in terms of quantity, quality, time, cost, effect,
manner of performance, or method of doing
Be measurable, with specified method(s) of gathering per-
formance data and measuring performance against stand-
ards





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CHAPTER 3
RESEARCH METHODOLOGY
3.1 Title of the study:
To ascertain the effectiveness of Performance Appraisal methodology
used by the Organization.
3.2 Duration of the Study:
The duration of the project is 45 days.
3.3 Objectives of the Study:
The various objectives of our research are as follows:
To examine why an appraisal system is important.
To study existing appraisal system in various organizations
across sectors like BPO, IT & Telecom.
To find the expectation of appraiser and appraisee
To determine the satisfaction level of the appraisee
To reveal the various loopholes in the appraisal system if any
To find the consequences of an inappropriately conducted ap-
praisal system

3.4 Scope of the Study
It is a systematic procedure of collecting information in order to analyze
and verify a phenomenon.The collection of information has been done
through two major sources:
1. Primary Data.
2. Secondary Data.
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Collection of Primary Data during the course of the study or research
can be through observations or through direct communication with re-
spondents on one form or another or through personal interviews. I
have collected primary data by the means of a Questionnaire. The
Questionnaire was formulated keeping in mind the objectives of the re-
search study.
Secondary data means data that is already available i.e., they refer to
data, which has already been collected and analyzed by someone else.
When a secondary data is used, the researcher has to look into various
sources from where he can obtain data. This includes information from
various books, periodicals, magazines etc.
3.5 Research Design
A research design is a type of blueprint prepared on various types of
blueprints available for the collection, measurement and analysis of da-
ta. A research design calls for developing the most efficient plan of
gathering the needed information. The design of a research study is
based on the purpose of the study.
A research design is the specification of methods and procedures for
acquiring the information needed. It is the overall pattern or framework
of the project that stipulates what information is to be collected from
which source and by what procedures.
3.6 Sampling
An integral component of a research design is the sampling plan. Spe-
cifically, it addresses three questions
Whom to survey (The Sample Unit)
How many to Survey (The Sample Size) &
How to select them (The Sampling Procedure)
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Making a census study of the whole universe will be impos-
sible on the account of limitations of time. Hence sampling
becomes inevitable. A sample is only a portion of the total
employee strength. According to Yule, a famous statisti-
cian, the object of sampling is to get maximum information
about the parent population with minimum effort.

Methods of Sampling
Probability Sampling is also known as random sampling
or chance sampling .Under this sampling design every indi-
vidual in the organization has an equal chance, or probabil-
ity, of being chosen as a sample. This implies that the sec-
tion of sample items is independent of he persons making
the study that is, the sampling operation is controlled objec-
tively so that the items will be chosen strictly at random.
Non Probability Sampling is also known as deliberate
sampling , purposeful and judgmental sampling. Non-
Probability Sampling is that which does not provide every
individual in the Organization with a known chance of being
included in the sample.
Research Methodology Adopted
Research Design : Descriptive research
Research Instrument : Structured Questionnaire
Sampling Plan
i) Sample Method : Non-Probability Sampling
ii) Sample Size : 50
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iii) Sample Unit : Employees who do not hold a
supervisory position
Sampling Design
Convenience Sampling, as the name implies, is based on
the convenience of the researcher who is to select a sam-
ple. Respondents in the sample are included in it merely on
account of their being available on the spot where the sur-
vey was in progress.
Source of Data
a) Primary Data : Structured Questionnaire
b) Secondary Data : Journals, Booklets, Company Data,
etc.
3.7Limitations of the Study:
The time period for the project was limited to only one and half
month and information provided is limited to the extent of internet
and journals. Some of the persons were not so responsive. Pos-
sibility of error in data collection because many of employees
may have not given actual answers of my questionnaire.







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CHAPTER 4
FACTS AND FINDINGS
Findings from Appraisee Survey

1. Expectations from Appraisal System :



Respondents were asked to rank the various options according to their preference.
(Rank 1 being most preferred and rank 6 being least preferred). Then scoring was
given on the basis of ranks. 1 mark was allotted to rank 1, 2 marks for rank 2 and
so on.

Particular Score Overall
Rank
Salary Administration and Benefits 87 1
Determination of promotion or trans-
fer
109 2
Assistance in goal 228 3
Guideline for training plan 254 4
An insight into your strengths and 312 5
87
109
354
228
254
312
0 50 100 150 200 250 300 350 400
Salary Administration and Benefits
Determination of promotion or transfer
Decision on layoff
Assistance in goal
Guideline for training Plan
An insight into your strengths and weakness
Expectation from Appraisal System
Score
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weakness
Decision to layoff 354 6

From the above table it can be seen that employees expect Salary Administration
and Benefits to be the main reason for conducting a Performance Appraisal. De-
cision to layoff is of least importance as per the appraisee.
2. Awareness about Responsibilities :



From the graph it can be seen that majority of employees are aware about their
responsibilities, which implies that the appraisers have efficiently communicated to
the appraisees all the parameters that will be taken into account during appraisal.



3. Satisfaction Level among appraise regarding Appraisal System :

Yes
86%
No
14%
Awareness about
Responsibilities
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From graph it can be seen that majority of the respondents are satisfied with the
appraisal system. Only a meager 30% were dissatisfied with the Performance Ap-
praisal programs.


4. Awareness about performance ratings :




This clearly shows that majority of the employees are not aware about the
performance ratings that are taken into account while conducting a performance
appraisal.


2%
28%
42%
23%
5%
Satisfaction Level
Fully Dissatisfied
Partially Dissatisfied
Satisfied
Partially satisfied
Fully satisfied
Yes
34%
No
66%
Awarness about Performance
Rating
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5. Alowing Self ratings :



From graph it can be seen that majority of respondents want self rating to be a
method of conducting the appraisals .

6. Chance to rate your own performance




From the graph we can see that majority of the employees are not given a chance
to rate their own performance in the organization.

Yes
92%
No
8%
Self Rating Should be allowed
Yes
23%
No
77%
Rate your own performance
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7. Timing of Appraisals




This shows that most of the organisations conduct their Performance Appraisal
programs annually. A very small percentage of the organisations conduct
Performance Appraisals on a half yearly basis. The share of the quarterly and
monthly appraisals are extremely minimal.

8. Credibility of Appraiser



This shows that according to the employees/appraisees the credibility of the
appraiser is extremely important and it has an effect on the overall Performance
appraisal program.
2% 3%
11%
84%
Timing of Appraisal
Monthly
Quaterly
Half Yearly
Annual
37%
63%
Credibility of Appraiser
Yes
No
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9. Complaint channel for employees





This shows that there is no proper complaint channel existing in the
organisations for the employees who are dissatisfied with the performance
appraisal system.

10. Standards communicated to employees



27%
73%
Complaint Channel for
employees
Yes
No
36%
64%
Standards Communicated to
Employees
Yes
No
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From this it can be seen that there is a clear majority among the employees who
say that the standards on the basis of which the performance appraisal is carried
out is not communicated to the employees before hand.

11. Performance Appraisal




Almost all the Performance Appraisals are carried our by the Immediate Supervisor
in these organisations. In very few organisations, Rating committees carry out the
performance appraisals. None of the organisations use Peer Appraisals, Appraisals
by subordinates and Self rating as a method of Performance Appraisal.

12. Clear understanding of Appraisees job


91%
0%
9%
0%
0%
Performance Appraisal
Immediate
Supervisor
Peer appraisal
Rating committee
Self Rating
77%
23%
Clear understanding of
Appraisee's Job
Yes
No
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This shows that the performance Appraisal programs are successful in giving a
clear understanding of the appraisees job to both appraiser and appraisee.


13. Objectives of Appraisal System




From the figure we can derive that the objective for conducting the Appraisal
system is clear only to half of the employees. The remaining half are not clear
about the objective for which the Performance Appraisal is carried out.
14. Good communication between top management and business goals



50% 50%
Objective of Appraisal System
Yes
No
22%
78%
Good communication
between Top management
and Business goal
Yes
No
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This shows that the appraisal systems do not provide a good communication flow
of the top-management plans and business goals to the staff below.

15. Comments and suggestions to be considered




Almost all the employees expect that their comments and suggestions should be
taken into consideration while conducting the Performance Appraisal.

16. Post Appraisal interview

As per the response from the employees we can see that there is no interview
conducted after the appraisal program for majority of the employees.

98%
2%
Comments and suggestion to
be considered
Yes
No
30%
70%
Post Appraisal Interview
Yes
No
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Findings from Appraiser Survey

1. Purpose of Appraisal



Respondents were asked to rank the various options according to their preference.
(Rank 1 being most preferred and rank 6 being least preferred). Then scoring was
done on basis of these ranks. 1 mark was allotted to rank 1, 2 marks for rank 2 and
so on. Then the total score for each purpose was calculated and overall ranking
was given.
Particular Score Overall
Rank
Determination of promotion or trans-
fer
24 1
Salary Administration and Benefits 27 2
Decision to layoff 42 3
Guideline for training plan 69 4
Assistance in goal 72 5
An insight into your strengths and
weakness
81 6

27
24
42
72
69
81
Salary Administration and Benefits
Determination of promotion or transfer
Decision on layoff
Assistance in goal
Guideline for training Plan
An insight into your strengths and weakness
Purpose of Appraisal System
Score
35 | P a g e

From table it can be seen that appraiser considers Determination of promotion or
transfer & Salary administration and Benefits as two important factors for con-
ducting an Appraisal.

2. Appraisal System



In this question appraiser was asked to rate how helpful the appraisal system is,
from the graph it can be seen that majority of appraisers have rated 5,4 & 3 which
implies that Performance Appraisal system is very helpful in Planning their work.
Also most of the appraisers are satisfied with the appraisal system.



3. Support from subordinate

0%
0%
27%
60%
13%
Appraisal System
1
2
3
4
5
36 | P a g e



This question was asked to find out how helpful appraisal system is in
communicating the support that apprasier needs from appraisee. From results it is
seen that the performance appraisal system is very helpful in communicating the
support and help needed by the appraiser from the appraisee.

4. Type of Appraisal System



From results its clear that majority of companies prefer to use 360 degree
feedback system for Performance Appraisal. As 360 degree feedback gives
feedback of appraisee from everyone interacting with him, it is more reliable and
hence most preferred.

5. Performance Appraisal criteria
100%
0%
Support from Subordinate
Yes
No
0%
14%
13%
73%
0%
Type of Appraisal System
Assessment centre
MBO
BARS
360 degree
feedback
37 | P a g e




From results we can see that Qualitative Process is considered as the most
important criteria for which the Performance appraisal programs are carried out,
which shows that companies consider Qualitiy of product & service and Customer
satisfaction as most important factors.


6. Timing of Appraisals





From graphs we can see that most of companies conduct appraisals on annual
basis. Some companies conduct quaterly also.
20%
60%
20%
Performance Appraisal
criteria
Quantitative
outcome criteria
Qualitative process
criteria
Quantitative
process criteria
87%
13%
0%
0% 0%
Timing of Appraisal
Annual
Quaterly
Half Yearly
Monthly
Anytime
38 | P a g e

7. Effect of poor Appraisal System



It can be seen from results that most of the employees get De-motivated because
of a poorly conducted appraisal. To some extent employees dont coordinate with
their team members. Thus resulting in reduction of output.


8. Communication between top management and staff


All appraisers totally agree that performance appraisal helps in communicating the
top management plans and business goals to staff at lower level.

9. Insight to Apprasiees strength and weakness

73%
0%
27%
Effect of Poor Appraisal
System
De-motivation
Retention
Ineffective
teamwork
100%
0%
Good Communication
between Top Management
and Staff
Yes
No
39 | P a g e



It is evident from the results that performance appraisal system doesnt help the
appraiser in understanding strength and weakness of apraisee.


10. Appraisees comment and suggestion


From the results it can be seen that appraisees comments and suggestion are not
taken into consideration before Performance Appraisal. Performance Appraisal
system is designed by appraiser without consulting appraisee.
11. Performance Appraisal
33%
67%
Insight into Appraisee's
Strength and weakness
Yes
No
13%
87%
Appraisee's comment &
suggestion
Yes
No
40 | P a g e


It is evident from the results that performance appraisal is conducted by the
Immediate Supervisor in all the companies.
12. Understanding of Apprasiees Job


From this it is clearly seen that according to appraiser there is a clear and joint
understanding of the appraisees job.
13. Standards for Performance Appraisal

100%
0% 0%
0%
0%
Performance Appraisal
Immediate
supervisor
Peer appraisal
Rating committees
Self-rating
100%
0%
Understanding of Appraisee's
Job
Yes
No
41 | P a g e



From results it is evident that Performance appraisal standards are very well
communicated to Appraisee before the Appraisal is carried out.

14. Self rating in Performance Appraisal


From results it can be clearly seen that the Appraisee is not given a chance to rate
his own performance.
15. Action after Performance Appraisal

87%
13%
Standards for Performance
Appraisal
Yes
No
0%
100%
Self Rating in Performance
Appraisal
Yes
No
42 | P a g e





This shows that most of the companies act upon the results of their Performance
Appraisal program.
17. Expectations from Appraisal System :



Respondents were asked to rank the various options according to their preference.
(Rank 1 being most preferred and rank 6 being least preferred). Then scoring was
given on the basis of ranks. 1 mark was allotted to rank 1, 2 marks for rank 2 and
so on.

Particular Score Overall
100%
0%
Action after Performance
Appraisal
Yes
No
87
109
354
228
254
312
0 50 100 150 200 250 300 350 400
Salary Administration and Benefits
Determination of promotion or transfer
Decision on layoff
Assistance in goal
Guideline for training Plan
An insight into your strengths and weakness
Expectation from Appraisal System
Score
43 | P a g e

Rank
Salary Administration and Benefits 87 1
Determination of promotion or trans-
fer
109 2
Assistance in goal 228 3
Guideline for training plan 254 4
An insight into your strengths and
weakness
312 5
Decision to layoff 354 6

From the above table it can be seen that employees expect Salary Administration
and Benefits to be the main reason for conducting a Performance Appraisal. De-
cision to layoff is of least importance as per the appraisee.
18. Awareness about Responsibilities :



From the graph it can be seen that majority of employees are aware about their
responsibilities, which implies that the appraisers have efficiently communicated to
the appraisees all the parameters that will be taken into account during appraisal.



19. Satisfaction Level among appraise regarding Appraisal System :

Yes
86%
No
14%
Awareness about
Responsibilities
44 | P a g e



From graph it can be seen that majority of the respondents are satisfied with the
appraisal system. Only a meager 30% were dissatisfied with the Performance Ap-
praisal programs.


20. Awareness about performance ratings :




This clearly shows that majority of the employees are not aware about the
performance ratings that are taken into account while conducting a performance
appraisal.


2%
28%
42%
23%
5%
Satisfaction Level
Fully Dissatisfied
Partially Dissatisfied
Satisfied
Partially satisfied
Fully satisfied
Yes
34%
No
66%
Awarness about Performance
Rating
45 | P a g e


21. Alowing Self ratings :



From graph it can be seen that majority of respondents want self rating to be a
method of conducting the appraisals .

22. Chance to rate your own performance




From the graph we can see that majority of the employees are not given a chance
to rate their own performance in the organization.

Yes
92%
No
8%
Self Rating Should be allowed
Yes
23%
No
77%
Rate your own performance
46 | P a g e

23. Timing of Appraisals




This shows that most of the organisations conduct their Performance Appraisal
programs annually. A very small percentage of the organisations conduct
Performance Appraisals on a half yearly basis. The share of the quarterly and
monthly appraisals are extremely minimal.

24. Credibility of Appraiser



This shows that according to the employees/appraisees the credibility of the
appraiser is extremely important and it has an effect on the overall Performance
appraisal program.
2% 3%
11%
84%
Timing of Appraisal
Monthly
Quaterly
Half Yearly
Annual
37%
63%
Credibility of Appraiser
Yes
No
47 | P a g e



25. Complaint channel for employees





This shows that there is no proper complaint channel existing in the
organisations for the employees who are dissatisfied with the performance
appraisal system.

26. Standards communicated to employees



27%
73%
Complaint Channel for
employees
Yes
No
36%
64%
Standards Communicated to
Employees
Yes
No
48 | P a g e

From this it can be seen that there is a clear majority among the employees who
say that the standards on the basis of which the performance appraisal is carried
out is not communicated to the employees before hand.

27. Performance Appraisal




Almost all the Performance Appraisals are carried our by the Immediate Supervisor
in these organisations. In very few organisations, Rating committees carry out the
performance appraisals. None of the organisations use Peer Appraisals, Appraisals
by subordinates and Self rating as a method of Performance Appraisal.

28. Clear understanding of Appraisees job


91%
0%
9%
0%
0%
Performance Appraisal
Immediate
Supervisor
Peer appraisal
Rating committee
Self Rating
77%
23%
Clear understanding of
Appraisee's Job
Yes
No
49 | P a g e


This shows that the performance Appraisal programs are successful in giving a
clear understanding of the appraisees job to both appraiser and appraisee.


29. Objectives of Appraisal System




From the figure we can derive that the objective for conducting the Appraisal
system is clear only to half of the employees. The remaining half are not clear
about the objective for which the Performance Appraisal is carried out.
30. Good communication between top management and business goals



50% 50%
Objective of Appraisal System
Yes
No
22%
78%
Good communication
between Top management
and Business goal
Yes
No
50 | P a g e

This shows that the appraisal systems do not provide a good communication flow
of the top-management plans and business goals to the staff below.

31. Comments and suggestions to be considered




Almost all the employees expect that their comments and suggestions should be
taken into consideration while conducting the Performance Appraisal.

32. Post Appraisal interview

As per the response from the employees we can see that there is no interview conducted
after the appraisal program for majority of the employees.
98%
2%
Comments and suggestion to
be considered
Yes
No
30%
70%
Post Appraisal Interview
Yes
No
51 | P a g e

Duration for which the respondent has been working in Aviva Life
Insurance.
This question was asked to the employees working in AIL to find out
the duration for which they have been working in the organization,
based upon which we can know if the employees are satisfied with their
job in the company or not.
Table 4: Duration of work period in Aviva Life Insurance.
Particulars No. of respondents Percentage of respondents
0-1 yrs 2 4%
1-5 yrs 26 52%
5-10 yrs 13 26%
10+ yrs 9 18%
Total 50 100%

Chart 5: Duration of work in AIL.



4 percent of the respondents are dealing with AIL for less than a year.
52 percent of the respondents are dealing in AIL from 1-5 yrs. 26 per-
0
5
10
15
20
25
30
0-1 yrs 1-5 yrs 5-10 yrs 10+ yrs
no. of respondents
52 | P a g e

cent of the respondents are dealing in AIL from 5-10 yrs. 18 percent of
the respondents are dealing in AIL for over 10 yrs.

Extent of satisfaction in setting goals/objectives in the beginning
of the year.
This question was asked to the employees of AIL to find out the extent
of satisfaction of the employees in setting goals/objectives in the be-
ginning of the year to know if they are being given opportunities to ex-
press their views.
Table 5: Extent of satisfaction

Particulars No. of respondents Percentage of respondents
Very satisfied 33 66%
Satisfied 13 26%
Dissatisfied 4 8%
Total 50 100%
Chart 6: Extent of satisfaction.

66 percent of the respondents are very satisfied in setting their goals
and objectives in the beginning of the year. 26 percent of the respond-
0
5
10
15
20
25
30
35
very satisfied satisfied dissatisfied
no. of respondents
53 | P a g e

ents are satisfied in setting their goals and objectives in the beginning
of the year. 8 percent of the respondents are dissatisfied in setting their
goals and objectives in the beginning of the year.
Ratings of the PA strategies and programmes in the company.
This question was asked to the employees of AIL to rate the standard
of various PA strategies and programmes that take place in the organi-
zation.
Table 6: Ratings of PA strategies.
Particulars No. of respondents Percentage of respondents
Good 35 70%
Average 15 30%
Bad 0 0%
Total 50 100%

Chart 7: Ratings of PA strategies.

70 percent of the respondents rate the Performance Appraisal strate-
gies as good. 30 percent of the respondents rate the Performance Ap-
0
5
10
15
20
25
30
35
Good Average Bad
no. of respondents
54 | P a g e

praisal strategies as average. None of the respondents rates the Per-
formance Appraisal strategies as bad.

Performance Appraisal strategies are fair and objective.
This question was asked to the employees to know if the performance
appraisal strategies are fair and objective to the employees.
Table 7: PA strategies are fair or not.
Particulars No. of respondents Percentage of respondents
Yes 42 84%
No 8 16%
Cant say 0 0%
Total 50 100%

Chart 8: PA strategies are fair or not.


84 percent of the respondents say that the Performance Appraisal
strategies are fair and objective. 16 percent of the respondents say that
0
10
20
30
40
50
Yes No Can't say
no. of respondents
55 | P a g e

the Performance Appraisal strategies are not fair and objective. None
of the respondents are there who cant say anything.
It is necessary to appraise an employee.
This question was asked to the employees to know how important it is
to appraise an employee.
Table 8: Necessity to appraise an employee.

Particulars No. of respondents Percentage of responders
Yes 50 100%
No 0 0%
Total 50 100%

Chart 9: Necessity to appraise an employee.



100 percent of the respondents say that it is necessary to appraise an
employee. None of the respondents says that it is necessary to ap-
praise an employee.
0
10
20
30
40
50
Yes No
no. of
respondents
56 | P a g e

There is clarity in what is expected from the employee.
This question was asked to the employees to know if they are made
clear on what is expected of them so that they can work accordingly.
Table 9: Clarity in what is expected from the employee.
Particulars No. of respondents Percentage of responders
Yes 50 100%
No 0 0%
Total 50 100%

Chart 10: Clarity in what is expected from the employee.


100 percent of the respondents say that they are clear with what
is expected of them. None of the respondents say that they are
not clear with what is expected of them.
Feedback is given to the Management Cadre Staff for the task ac-
complished by them.
0
10
20
30
40
50
Yes No
no. of
respondents
57 | P a g e

This question was asked to the employees to know if they are provided
with proper feedback for the task they accomplish, based upon which
they can work better in future.
Table 10: Feedback is given to MCS.
Particulars No. of respondents Percentage of responders
Yes 31 62%
No 19 38%
Total 50 100%

Chart 11: Feedback is given to MCS.

62 percent of the respondents say that the feedback is given to the
MCS for the task accomplished by them. 38 percent of the respondents
say that the feedback is not given to the MCS for the task accom-
plished by them.

Suggestions and innovations are rewarded.
This question was asked to the employees to know if they are motivat-
ed by accepting their suggestions and innovations in the form of re-
wards.
0
5
10
15
20
25
30
35
Yes No
no. of
respondents
58 | P a g e


Table 11: Suggestions and innovations are rewarded.
Particulars No. of respondents Percentage of responders
Yes 17 34%
No 33 66%
Total 50 100%

Chart 12: Suggestions and innovations are rewarded.


34 percent of the respondents say that their suggestions and innova-
tions are rewarded. 66 percent of the respondents say that their sug-
gestions and innovations are not rewarded.
Supervisors take interest in sharing an employees personal con-
cern.
0
5
10
15
20
25
30
35
Yes No
no. of
respondents
59 | P a g e

This question was asked to the employees to know if the employees
problems are dealt well by their supervisors so that their morale in-
creases and they are satisfied with their job.
Table 12: Supervisors share an employees personal con-
cern.
Particulars No. of respondents Percentage of responders
Yes 36 72%
No 14 28%
Total 50 100%

Chart 13: Supervisors share an employees personal con-
cern.


72 percent of the respondents say that the supervisors take interest in
sharing their personal concern. 28 percent of the respondents say that
the supervisors do not take interest in sharing their personal concern.
Annual increments/promotions are based on performance.
This question was asked to the employees to know if the annual incre-
ments/promotions are based on their performance or not.
0
5
10
15
20
25
30
35
40
Yes No
no. of
respondents
60 | P a g e

Table 13: Increments & promotions based on perfor-
mance.
Particulars No. of respondents Percentage of responders
Yes 41 82%
No 7 14%
Cant say 2 4%
Total 50 100%

Chart 14: Increments & promotions based on perfor-
mance.


82 percent of the respondents say that the annual incre-
ments/promotions are based on their performance. 14 percent of the
respondents say that the annual increments/promotions are not based
on their performance. 4 percent of the respondents cant say or their
answers are inapplicable.
Extent of satisfaction in interdepartmental teamwork.
0
5
10
15
20
25
30
35
40
45
Yes No Can't say
no. of respondents
61 | P a g e

This question was asked to the employees to know the extent of satis-
faction in interdepartmental teamwork based on which their effective-
ness in work can be known.
Table 14: Satisfaction in inter departmental team work.
Particulars No. of respondents Percentage of responders
Very satisfied 14 28%
Satisfied 25 50%
Dissatisfied 11 22%
Total 50 100%

Chart 15: Satisfaction in inter departmental team work.


28 percent of the respondents are very satisfied with interdepartmental
teamwork. 50 percent of the respondents are just satisfied with interde-
partmental teamwork. 22 percent of the respondents are dissatisfied
with interdepartmental teamwork.
Extent of help of training and development programmes in im-
proving employees performance.
0
5
10
15
20
25
very satisfied satisfied dissatisfied
no. of respondents
62 | P a g e

This question was asked to the employees to know how far the training
and development programme is helping the employees to learn and
work better.
Table 15:
Particulars No. of respondents Percentage of responders
To great extent 11 22%
To some extent 35 70%
To very little extent 4 8%
Total 50 100%

Chart 16:

22 percent of the respondents say that the training and development programmes help to a
great extent to improve their performance. 70 percent of the respondents say that the train-
ing and development programmes help to some extent to improve their performance. 8
percent of the respondents say that the training and development programmes help to a
very little extent to improve their performance.
Performance Appraisal System is used in job rotation.
This question was asked to the employees to know the extent of use of performance ap-
praisal system in job rotation.
0
5
10
15
20
25
30
35
great extent some extent very little
extent
no. of respondents
63 | P a g e

Table 16:
Particulars No. of respondents Percentage of responders
Mostly 6 12%
Partially 44 88%
Nil 0 0%
Total 50 100%

Chart 17:


12 percent of the respondents say that performance appraisal system
is mostly used in job rotation. 88 percent of the respondents say that
performance appraisal system is partially used in job rotation. None of
the respondents say that performance appraisal system is not at all
used in job rotation.
Extent of the purpose of performance appraisal system being ful-
filled.
This question was asked to the employees to know how far the perfor-
mance appraisal system is actually helping them in their work.
0
5
10
15
20
25
30
35
40
45
Mostly Partially Nil
no. of respondents
64 | P a g e


Table 17:
Particulars No. of respond-
ents
Percentage of re-
sponders
Completely 39 78%
Partially 11 22%
Total 60 100%

Chart 18:



78 percent of the respondents say that the purpose of performance ap-
praisal is completely fulfilled. 22 percent of the respondents say that
the purpose of performance appraisal is partially fulfilled.
AIL always strives for continuous individual improvements.
This question was asked to the employees to know how far they agree
with the fact that AIL always strives for continuous individual improve-
ments.
Table 18:
Particulars No. of respondents Percentage of responders
0
5
10
15
20
25
30
35
40
Completely Partially
no. of respondents
65 | P a g e

Strongly agree 11 22%
Agree 29 58%
Disagree 8 16%
Strongly disagree 2 4%
Total 50 100%
Chart 19:

22 percent of the respondents strongly agree that AIL always strives for
continuous individual improvements. 58 percent of the respondents
agree that AIL always strives for continuous individual improvements.
16 percent of the respondents disagree that AIL always strives for con-
tinuous individual improvements. 4 percent of the respondents strongly
disagree that AIL always strives for continuous individual improve-
ments.






0
5
10
15
20
25
30
Strongly
agree
Agree Disagree Strongly
disagree
no. of respondents
66 | P a g e


C CH HA AP PT TE ER R5 5
A AN NA AL LY YS SI IS S A AN ND D I IN NT TE ER RP PR RE ET TA AT TI IO ON N
Male / Female ratio within the selected sample











Female
Male
67 | P a g e

Data

Males 24

Females 26

Analysis

There is equality in terms of the ratio between males and females in.
This can also be as Aviva life Insurance ertained from the fact that
the same ratio is present among the total strength of 350+ employ-
ees in the company. The sample was carefully chosen to ensure that
the study gave an equal opportunity to both the sections to voice their
opinion and there gain a truer picture of the conclusions derived by the
study. The balance of both the genders in the Organization also
gives rise to a good work atmosphere and better understanding be-
tween the employees. This trend can also be witnessed in the su-
pervisory ranks of Aviva life Insurance. This helps to remove many
barriers that may exist due to various reasons.The Management of
Aviva life Insurance strives to be an equal opportunity employer and
therefore does not try to discriminate on the basis of Gender.












Years of Experience within the Organization






68 | P a g e










20

18

16

14

12

10

8

6

4

2

0
1 2 3 4 5

Yr s




Data

1) Less than a Year 5 2) One Year 19 3) Two Years 14

4) Three Years 5 5) Four + Years 7



Analy-
sis

Most of the employees in the Organization are relatively new be-
cause a majority of them (i.e. 66%) have between one and two
years of experience in the Organization. This is mainly due to the
fact that the Organization is in a constant mode of growth and is
therefore recruiting in a big way. The expansion plans are done
keeping in mind the proposed growth in business in the near future.
Another reason is the fact that finding new talent for the required
skills is a tough task because market awareness about the career
growth in this sector is very limited. Due to this, Aviva life Insurance
69 | P a g e

has inducted a lot of employees after providing them with training
to ensure that their Human resource requirements are met.

1) Have you worked in any other Company prior to joining this

Organization?








35

30

25

20

15

10

5

0
1 2

Data





Analysis


1) Yes 32

2) No - 18
70 | P a g e


Thirty-two employees (i.e. 64%) have some amount of prior work
experience before joining Aviva life Insurance. Most of them are di-
ploma holders in animation and were not aware of the existence of
such an industry.They do not have any hands-on experience of the
kind of work carried out by Aviva life Insurance.This fact can also be
interpreted as having no valid work experience at all prior to joining
the Organization.
2) Were you informed about the Performance Appraisal model, used in

the Organization, during your induction?








27

26

25

24

23

22

21
1 2

Data

1) Yes 27

2) No - 23

Analysis

Due to the fact that most of the employees have got no experience
in this sector before, they did not ask about the Performance Ap-
praisal model used in the Organization.
3) How do you find the Performance Appraisal Model in this

71 | P a g e

Organization? (Mark all the relevant options)






40

35

30

25

20

15

10

5

0
1 2 3 4 5 6



Data

1) Simple 37 2) Complicated 13 3) Objective - 17

4) Subjective - 33 5) Efficient - 32 6) Inefficient - 18

Analysis

From the above chart it can be inferred that, a majority of the sam-
ple respondents have found the Appraisal Model to be simple and ef-
ficient on one hand but also subjective on the other hand. T

4) In your opinion, does the Performance Appraisal System give a

proper assessment of your contribution to the Organization?















72 | P a g e

27

26

25

24

23

22

21
1 2

Data

1) Yes 27

2) No - 23

Analysis

About 54% of the respondents say that the Performance Appraisal
System does give a true and fair view of their contribution to the Or-
ganization

5) How often does your Performance assessment match to your
expectations?




20

18

16

14

12

10

8

6

4

2

0
1 2 3 4 5


Data

1) Never - 2 2) Rarely - 8 3) Sometimes 13

4) Often - 20 5) Every time - 7

73 | P a g e

Analysis

The breakup of the data clearly shows that 4% of the entire sample
state that their appraisal have never shown a fair view of their perfor-
mance,80% are satisfied with the present system.This does show
that the satisfaction level of the employees in this system is quite
high and that there is a general feeling of likeability among the re-
spondents
74 | P a g e

6) According to you, how often should the Performance Review take
place?








18

16

14

12

10

8

6

4

2

0
1 2 3 4 5


Data

1) Once in a week - 14 2) Once a month - 17 3) Every 3 months 12

4) Every 6 Months - 3 5) Once a Year - 4

Analysis
Performance appraisal review is a constant process and lesser the frequency between the
appraisals, the better. The majority want (i.e. 86% which includes the first 3 options only)
the frequency of the appraisal to less than 3 months.


75 | P a g e








N
o

o
f

P
e
o
p
l
e

7) What is your Satisfaction level with the current Appraisal System?








30

25

20

15

10

5

0
1 2 3 4 5
Satisfaction level



Data

1) Very Low - 0 2) Low - 4 3) Average 13

4) High - 28 5) Very High - 5

Analysis

The satisfaction level of the Appraisal system is quite high as can be seen from the graph.
The curve tops at the rating of high and this includes about 56% of the population.
The bell curve shows that 92% have rated the Appraisal system as average, high or very
high.The satisfaction level also brings to light the efficiency of the management in devis-
ing acceptable Appraisal system.











8) Which are the areas that should be improved upon?

76 | P a g e




25


2 0


15


10


5


0
1 2 3 4







Data

1) Standards - 12 2) Monetary Incentives - 25 3) Freq of Appraisal 23

4) Appraiser - 3

Analysis

This question breaks up the different phases of the appraisal system and tries to come to
derive a conclusion as to the areas of improvement in the process of evaluation. Fifty
percent of the respondents say that there should be a change on the aspect of monetary
incentives.Standards of performance (i.e. benchmarks) should be improved according to
24% of the respondents. Only 6% have stated the there should be change in the ap-
praiser.









9) How important do you think is Performance Appraisal to your
Performance?


77 | P a g e

Productivity Analysis











25


20


15


10


5


0
1 2 3 4 5




Data

1) Not Important - 0 2) Less Important - 2 3) Important 14

4) Very Important - 22 5) Most Important - 12

Analysis
A vast majority of the respondents (i.e. 68% which includes ratings of very important
or most important ) affirm that their performance is directly influenced by recognitions
of their performance by the appraisal system. None of the respondents have stated that
the appraisal system had no effect on their productivity.








10) Do you think the One on One sessions are effective in ironing out
problems in the work environment?





78 | P a g e














27

26

25

24

23

22

21
1 2




Data

1) Yes 23

2) No - 27

Analysis
Sixty four percent of the employees responded by saying that the one on one sessions are
not efficient in ironing out problems mainly because since they are done on a formal
basis so most employees consider it just as a formality which the appraiser uses to impose
the rating he has already given to an employee. The employee therefore does not expect
the rating to change after a one on one session with the supervisor.









46
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11) Transparency Rating of the Performance Appraisal system


Transperancy Rating







18

16

14

12

10

8

6

4

2

0
1 2 3 4 5 6




Data

1) 4 Points 10 2) 5 Points 16 3) 6 Points 9
4) 7 Points 8 5) 8 Points 5 6) 9 Points 2
Analysis

This question is an attempt to analyze the perceived transparency of the rating among the
employees of the Organization. A majority of the employees have given a transparency
rating of 5. The perception of the employees is since the appraisal is done on a quarterly
basis, the employee is not in a position to actually evaluate the basis of the rating he / she
has received. This causes a lot of ambiguity in the ratings. This is the primary concern
due which almost 70 % have given a rating of 6 and below. The respondents who have
given a rating of 7 and above have mostly given this rating because they have got good
ratings in the past and feel that there is not much required in terms of transparency as
long as they get good ratings themselves.






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12) Do you feel comfortable discussing any difference of opinion about
your Performance Rating with your appraiser?










30
25

20

15

10

5

0
1 2


Data

1) Yes 21

2) No - 29

Analysis
The major reason for the decreased transparency rating might be due to the fact that 58 %
of the respondents did not feel free to express their displeasure, if any, to the rating given
to them. This can be due to decreased comfort levels with the appraiser. The appraisal
system can only be efficient if it takes into consideration the employee s side of the
appraisal.






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13) Performance Appraisal Model Rating


Overall Rating





18

16

14

12

10
8

6

4

2

0
1 2 3 4 5



Data

1) 5 Points 2 2) 6 Points 6 3) 7 Points 14

4) 8 Points 16 3) 9 Points - 12

Analysis
The respondents were specifically told to rate the Appraisal system by setting aside any kind
of human intervention present in it by just evaluating its inherent structure and not efficiency
in its execution. This helps to ascertain whether there are any flaws in the Performance Ap-
praisal system. About 80 % of the sample has given a rating of 7 points and above. This
shows the system is generally acceptable to the employees and is a good sign.





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CHAPTER 6
SWOT ANALYSIS

The SWOT analysis of Insurance sector is as follows:-

1. Strength - Very good policies of life coverage.

2. Weaknesses :- unable to convince the people about the products. There
are not much advisors for the insurance companies

3. Oppourtunities :- Untapped rural sector and small towns

4. Threats :- growing competition from larger MNC's.


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CHAPTER 7
CONCLUSION
With rewards being directly linked to achievement of objectives, goal set-
ting and Performance Appraisal assumes utmost importance. The Perfor-
mance Appraisal System has been professionally designed and it is moni-
tored by HRD. The implementation is the responsibility of each and every
employee along with their supervisor. There should be adequate training to
the evaluator that will go a long way in answering the quality of Perfor-
mance Appraisal. In conclusion, a Performance Appraisal is a very im-
portant tool used to influence employees. A formal Performance review is
important as it gives an opportunity to get an overall view of job perfor-
mance and staff development. It encourages systematic and regular joint-
stocking and planning for the future. Good performance reviews therefore
dont just summarize the past they help determine future performance.














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CHAPTER 8
RECOMMENDATIONS AND SUGGESTIONS
Recommendation
Presence of a firmly implemented career plan- good sense of growth.
High proportion of routine work- during training and immediately after.
Organization climate-
a. Well analyzed goals are set.
b. Good and effective performance appraisal strategies applied.
c. All the strategies are fair and objective.
d. The employees are well aware of what is expected of them.
e. Proper feedback is not given to the management cadre staff.
f. Suggestions and innovations are not rewarded.
g. Supervisors are patient with the employees problems.
h. Good performance leads to annual increments and promotions.
i. Training and development programs are not very effective and
helpful.
j. The purpose of Performance Appraisal System followed in the
company is fulfilled.

Suggestions
Extensive of the job training.
Free hand in decision making.
Focused job responsibility.
Transparent career planning of all officers.
Give tangible advantages.
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Exemplary rewards should be given for unique achievements of the em-
ployees.
Informal were calling as and when they need.
Giving chance in decision making.
Reward for employee work.
Proper interactions with seniors.
Effective training and development programs should be held.
Proper feedback should be given to the management cadre staff at fixed
time periods.
Suggestions and innovations should be encouraged.
Performance appraisal system should be extensively used in job rota-
tion.
Up gradation of basic qualification of all workers to be taken in future
based on their performance.
Improve competency of the workers.
The company should concentrate more on individual development.








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CHAPTER 9
APPENDICES

Questions for Appraises

Name: ___________________________ Contact No:
__________________________
What do you expect from a Performance appraisal :
(Rank the options from 1 to 6; 1 being most preferred & 6 being least pre-
ferred)
Detail
Rank
Salary Administration
and Benefits

Determination of
promotion or transfer

Decision on layoff

Assistance in goal

Guideline for training
Plan

An insight into your
strengths and weak-
ness



1. Do you know what exactly is expected from you at work?
a. Yes b. No
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2. Are you satisfied with the appraisal system?
1 2 3 4 5
(1 = Least satisfied; 5 = Most satisfied)
3. Are you aware of performance ratings?
a. Yes b. No
4. Do you think you should be given an opportunity to rate your own perfor-
mance?
a. Yes b. No
5. Are you given a chance to rate your own performance?
a. Yes b. No
6. Timing of Appraisals
a. Monthly
b. Quarterly
c. Half Yearly
d. Annual
e. Anytime
7. Does the credibility of Appraiser affect the Performance Appraisal System?
a. Yes b. No
8. Is there a complaint channel for the employees who are dissatisfied with
the performance appraisal system?
a. Yes b. No
9. Are the standards on the basis of which the performance appraisal is car-
ried out communicated to the employees before hand?
a. Yes b. No
10. Who conducts the performance appraisal?
a. Immediate supervisor
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b. Peer appraisal
c. Rating committees
d. Self-rating
e. Appraisal by subordinates
11. Is the performance Appraisal successful in giving a clear understanding of
the appraisees job to both appraiser and appraise?
a. Yes b. No
12. Are the objectives of appraisal system clear to you?
a. Yes b. No
13. Does the appraisal system provide a good communication between the top-
management plans and business goals to staff below?
a. Yes b. No
14. Do you want your comments and suggestions to be taken into considera-
tion during appraisal?
a. Yes b. No
15. Is there a post appraisal interview conducted?
a. Yes b. No

Questions for Appraiser
Name: ___________________________ Contact No:
__________________________

1. Purpose of Performance appraisal :
(Rank the options from 1 to 6; 1 being main purpose & 6 being last pur-
pose)
Detail
Rank
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Salary Administration
and Benefits

Retain performing
employees

Determination of
promotion or transfer

Decision on layoff

Assistance in goal

Guideline for training
Plan


2. Is the Performance Appraisal helping you to plan your work well?
1 2 3 4 5
(1 = Least helpful; 5 = Most helpful)
3. Does the system provide you a chance to communicate the support you
need from your subordinate to perform the job well.
a. Yes b. No
4. Which appraisal system is being employed in the company?
a. Assessment centre
b. MBO
c. BARS
d. 360 degree feedback
e. Balance scorecard
5. Performance Appraisal criteria
a. Quantitative outcome criteria (Sales volume, Sales price, Productivity, Goal
accomplishment rate)
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b. Qualitative process criteria (Quality of product or service, Customer satis-
faction)
c. Quantitative process criteria (Efficiency, Cost/expenses, Attendance)
d. Qualitative process criteria (Judgment, Work attitude, Leadership, Conduct
/Trait)
6. Timing of Appraisals
a. Monthly
b. Quarterly
c. Half Yearly
d. Annual
e. Anytime
7. What do you think is the effect of a poor appraisal system
a. De-motivation
b. Retention
c. Ineffective teamwork
8. Does the appraisal system provide a good communication between the top-
management plans and business goals to staff below?
a. Yes b. No
9. Does it give insight to appraisee regarding his strength or weakness?
a. Yes b. No
10. Are employees comments and suggestions taken into consideration before
the appraisal?
a. Yes b. No
11. Who conducts the performance appraisal
a. Immediate supervisor
b. Peer appraisal
c. Rating committees
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d. Self-rating
e. Appraisal by subordinates
12. Is the performance Appraisal successful in giving a clear understanding of
the appraisees job to both appraiser and appraise?
b. Yes b. No
13. Are the standards on the basis of which the performance appraisal is car-
ried out communicated to the employees before hand?
a. Yes b. No
14. Do you give an opportunity to the appraisee to rate his own performance?
a. Yes b. No
15. Do you act upon the results of your performance appraisal?
a. Yes b. No
16. If yes, then mention the remedial measures taken?


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CHAPTER 10
BIBLOGRAPHY
Books:
Donald L. Kirkpatrick, 2006, Improving Employee Performance through
Appraisal and Coaching.
Richard Rudman, 2003, Performance Planning and Review.
Roger E. Herman, 1997, The Process of excelling, oak Hill press.
P. Subba Rao, 2006, Essentials of Human Resource Management and
Industrial Relations, Himalaya Publishing House.
Journals:
Gitam Journal of Management.
Journal of Occupational and Environmental medicine.
Indian Journal of Social Work.
Indian Journal of Human Resource.
Websites Visited:
www.jkorg.in
www.google.com
www.answers.com
www.wikipedia.org