Project report on Performance Appraisal of BSNL

1. 1. SHERWOOD COLLEGE OF PROFESSIONAL MANAGEMENT A SUMMER

TRANING REPORT ON PERFORMANCE APPRAISAL SUBMITTED IN THE
PARTIAL FULFILLMENT OF THE DEGREE OF BACHELORS OF BUSINESS
ADMINISTRATION UNDER THE GUIDANCE OF:Dr. Rajneesh Srivastava
SUBMITTED BY:ABHISHEK KUSHWAHA BBA-5 SEMESTER ROLL NO:11072101002 1
2. 2. ACKNOWLEDGEMENT I consider myself very fortunate to get the opportunity to
conduct the training approval and project assignment by BHARAT SANCHAR
NIGAM LIMITED (BSNL). I got opportunity to get a practical exposure into actual
environment and it provides me the golden opportunity to make my theoretical
concept of Recruitment and selection process in a more clear way. I am very much
thankful to MR. J.P Tiwari for providing me the opportunity to do the training in the
BSNL. Also, thankful to all the officials at BSNL for their cooperation during my
training for providing me necessary information without which this project report
would not have been completed. I have gone through various sites, Research Books,
Magazines and Newspapers to get the accurate information for analysis and tried to
find the best conclusion. ABHISHEK KUSHWAHA (BBA Vth SEM) 2
3. 3. PREFACE Summer training is the most vital part of an BBA course, both as a link
between theory and actual industrial practices as well as an opportunity for hands on
experience in corporate environment. I therefore, consider myself fortunate to receive
the training in an esteemed organization viz. Bharat Sanchar Nigam Limited. Yet the
opportunity could not have been utilized without the guidance and support of many
individuals who although held varied positions, but were equally instrument for
although completion of my summer training. Dr. Rajneesh Srivastava and also thanks
to all my faculty members and my Parents and friends. However, I accept the sole
responsibility errors of omission and would be extremely grateful to readers of this
project report if they bring such mistake to my notice. ABHISHEK KUSHWAHA (BBA
Vth SEM) 3
4. 4. EXECUTIVE SUMMERY Most organizations have a performance appraisal (PA)
program that has evolved over time and is likely not meeting the needs of employees
and managers. Many competing PA theories and practices exist making
development of an effective program difficult. However, done well, a strong PA
program reinforces organizational culture and helps employees achieve high levels of
performance. An effective PA program can improve key business measures such as
Return on Assets, Return on Equity, profit margins and earnings. Every strong PA
program has three elements: performance tracking, informal feedback, and formal
appraisal. Build on these three elements to customize your program to your

5.

6.
7.

8.

organizations goals and values: o Informal coaching is the single most significant
factor in easing retention and developing talent. o Forced ranking and forced
distribution are techniques that work well in competitive environments. Avoid them in
team-based departments. o 360-degree evaluations help to improve people
management abilities. Stay away from using them for manager compensation or
disciplinary purposes. 4
5. Analysis Research Methodology 49-58 Introduction 20-48 Performance
appraisal process Performance appraisal process at Reliance HR Services private
Ltd. Company profile 6-19 Executive summary 4 Preface 3
Acknowledgement 2 TABLE OF CONTENT CONTENT PAGE NO. & Appendix 77
5 Bibliography 76 Conclusion 75 Suggestion 73-75 Limitation 71
Interpretation 59-70
6. COMPANY PROFILE 6
7. INTRODUCTION TYPE AVAILABILITY COUNTRYWIDE OWNER
GOVERNMENT OF INDIA KEY PEOPLE CHAIRMAN & DIRECTOR-RAJESH
KUMAR UPADHYAY FOUNDED 19TH CENTURY, INCORPRATED IN 2000
WEBSITE 1.1 COMMUNICATION SERVICE PROVIDER WWW.BSNL.IN
OVERVIEW OF THE BSNL: BSNL is India's oldest and largest Communication
Service Provider (CSP). Currently BSNL has a customer base of 64.8 million (Basic
& Mobile 7
8. telephony). It has footprints throughout India except for the metropolitan cities of
Mumbai and New Delhi which are managed by MTNL. As on March 31, 2007 BSNL
commanded a customer base of 33.7 million Wire line, 3.6 million CDMA-WLL and
27.5 million GSM Mobile subscribers. BSNL's earnings for the Financial Year ending
March 31, 2006 stood at INR 401.8b (US$ 9.09 b) with net profit of INR 89.4b (US$
2.02 billion). Today, BSNL is India's largest Telco and one of the largest Public Sector
Undertaking of the country with authorized share capital of US$ 3.95 billion (INR
17,500 Crore) and net worth of US$ 14.32 billion. 1.3 PROFILE OF
ORGANISATION: OVER VIEWS OF ORGANISATION HISTORY:The foundation of
Telecom Network in India was laid by the British sometime in 19th century. The
history of BSNL is linked with the beginning of Telecom in India. In 19th century and
for almost entire 20th century, the Telecom in India was operated as a Government
of India wing. Earlier it was part of erstwhile Post & Telegraph Department (P&T). In
1975 the Department of Telecom (DoT) was separated from P&T. DoT was
responsible for running of Telecom services in entire country until 1985 when
Mahanagar Telephone Nigam Limited (MTNL) was carved out of DoT to run the
telecom services of Delhi and Mumbai. It is a well known fact that BSNL was carved
out of Department of Telecom to provide level playing field to private telecoms.

Subsequently in 1990s the telecom sector was opened up by the Government for
Private investment, therefore it became necessary 8
9. 9. to separate the Government's policy wing from Operations wing. The Government
of India corporatized the operations wing of DoT on October 01, 2000 and named it
as Bharat Sanchar Nigam Limited (BSNL).BSNL operates as a public sector. MAIN
SERVICES BEING PROVIDED BY BSNL BSNL provides almost every telecom
service, however following are the main Telecom Services being provided by BSNL
in India:1. UNIVERSAL TELECOM SERVICES: Fixed wire line services & Wireless
in Local loop (WLL) using CDMA Technology called bfone and Tarang respectively.
BSNL is dominant operator in fixed line. As on March 31, 2007 (end of financial year)
BSNL had 76% share of fixed and WLL phones. BSNL MOBILE PRE-PAID MOBILE
2. CELLULAR MOBILE TELEPHONE SERVICES: BSNL is major provider of Cellular
Mobile Telephone services using GSM platform under brandname Cellone. Pre-paid
Cellular services of BSNL are know as Excel. As on March 31, 2007 BSNL had 17%
share of mobile telephony in the country. 9
10. 10. BSNL Broadband 3. INTERNET: BSNL is providing internet as dial-up connection
(Sancharnet) and ADSL-Broadband Data one. BSNL has around 50% market share
in broadband in India. BSNL has planned aggressive rollout in broadband for current
financial year. 4. Intelligent Network (IN): BSNL is providing IN services like
televoting, toll free calling, premium calling etc. BSNL PRESENT & FUTURE Since
its corporatisation in October 2000, BSNL has been actively providing Connections
in both Urban and Rural areas and the efficiency of the company has drastically
improved from the days when one had to wait for years to get a phone connection to
now when one can get a connection in even hours. Pre-activated Mobile connections
are available at many places across India. BSNL has alsounveiled very cost-effective
Broadband internet access plans (DataOne) targetedat homes and small
businesses. At present BSNL enjoy's 47% of market share of ISP services. Year of
Broadband 2007 10
11. 11. Former Indian Communications Minister Thiru Dayanidhi Maran had declared
year 2007 as "Year of Broadband" in India and BSNL is gearing up to provide 5
million Broadband connectivity by the end of 2007. BSNL has upgraded existing
Dataone (Broadband) connections for a speed of up to 2 Mbit/s without any extra
cost. This 2 Mbit/s broadband service is being provided by BSNL at a cost of just
US$ 5.5 per month. Further, BSNL is planning to upgrade its broadband services to
Triple play (telecommunications) in 2007. BSNL has been asked to add 108 million
customers by 2010 by Former Indian Communications Minister Thiru Dayanidhi
Maran. With the frantic activity in the communication sector in India, the target
appears achievable, however due to intense competition in Indian Telecom sector in
recent past BSNL's growth has slowed down. BSNL is pioneer of Rural Telephony in

India. BSNL has recently bagged 80% of US$ 580 m (INR 2,500 crores) Rural
Telephony project of Government of India. CHALLENGES:During Financial Year
2007-2008 (From April 01, 2006 to March 31, 2007) BSNL has added 9.6 million new
customers in various telephone services taking its customer base to 64.8 million.
BSNL's nearest competitor Bharti Airtel is standing at a customer base of 39 million.
However, despite impressive growth shown by BSNL in recent times, the fixed line
customer base of BSNL is declining. In order to woo back its fixed-line customers
BSNL has brought down long distance calling rate under One India plan, however,
the success of the scheme is not known. 11
12. 12. However, BSNL faces bleak fiscal 2006-2007 as users flee, which has been
accepted by the CMD BSNL. Presently there is an intense competition in Indian
Telecom sector and various Telcos are rolling out attractive schemes and are
providing good customer services. However, BSNL being legacy operator and its
conversion from a Government Department earns lot of criticism for its poor
customer service. Although in recent past there have been tremendous improvement
in working of BSNL but still it is much below the Industry's Expectations. A large
aging (average age 49 years (appx)) workforce (300,000 strong), which is mostly
semiliterate or illiterate is the main reason for the poor customer service. Further, the
Top management of BSNL is still working in BSNL on deputation basis holding
Government employee status thus having little commitment to the organisation.
Although in coming years the retirement profile of the workforce is very fast and
around 25% of existing workforce will retire by 2010, however, still the workforce will
be quite large by the industry standards. Quality of the workforce will also remain an
issue. Access Deficit Charges (ADC, a levy being paid by the private operators to
BSNL for provide service in non-lucrative areas especially rural areas) has been
slashed by 37% by TRAI, w.e.f. April 01, 2007. The reduction in ADC may hit the
bottom-line of BSNL. 12
13. 13. Popularize Broadband Services and to be on-demand in the whole State. 13
Expansion of new services like Internet, Intelligent Network, ISDN, Internet
Telephony, Video Conferencing, Broadband etc. Provision of telephone
connections on demand in all the villages of M.P. To upgrade the quality of telecom
service to international level. To build a high degree of customer confidence by
sustaining quality and reliability in service. network with the following aims and
objective MP Telecom looks over the management, control and operation of the
telecom To Provide world class telecom infrastructure in its area of operation and
to Contribute to the growth. OBJECTIVE: Customers on demand at competitive
prices. To provide world class State-of-art technology telecom services to its
VISION To become the largest telecom Service Provider. MISSION

14. 14. Modernize PSTN network by making RSUs To open more Customer Service
Centers and upgrade the existing Customer Service Centers for better and friendly
Customer care. To improve the quality of present services being given to the
subscribers. To open Internet Kiosks (Cafe's) at all Block Head Quarters.
Expansion of Cellular Mobile Telephone to all towns. & Plantation of Trees to
make environment CleanAN-RAX. & To increase accessibility of services, by
providing a large number of Local and NSD/ISD Public Call Offices (PCOs) so as to
reach out to the masses. 14 To raise necessary financial resources for its
developmental needs. Green.
15. 15. Products BSNL LANDLINE BSNL MOBILE _ POSTPAID _ PREPAID _
UNIFIED MESSAGING _ GPRS/WAP/MMS _ DEMOs _ TARIFF BSNL WLL
INTERNET SERVICES _ NETWORK _ BROADBAND _ WI-FI _ CO-LOCATION
SERVICE _ BSNL WEB HOSTING _ DIAL UP INTERNET _ SMS& BULK SMS
BSNL BROADBAND BSNL MANAGED NETWORK SERVICES BSNL MPLS-VPN
ISDN LEASED LINE 15
16. 16. INTELLIGENT NETWORK _ FREE PHONE SERVICE _ PREMIUM RATE
SERVICE _ INDIA TELEPHONE CARD _ VIRTUAL PRIVATE NETWORK (VPN) _
VOICE VPN _ UNIVERSAL NUMBER _ UNIVERSAL PERSONAL NUMBER _ TELE
VOTING VIDEO CONFERENCING AUDIO CONFERENCING TELEX/
TELEGRAPH EPABX _ EPABX _ FREE EPABX _ CENTREX HVNET
INMARSAT TRANSPONDER 16
17. 17. SWOT Analysis (Strength / Weakness/ Opportunities / Threats) Strength The
telecom sector is poised for continued high growth and our company is well placed to
benefit from this phenomenon. BSNL is the largest telecom operator providing all
kind of telecom services throughout the country. The widest network reach of the
company is its USP. Weakness BSNL being Government Company has no any
major weakness in the business. Opportunities Having biggest infrastructure
provider it is easy for company to enter into any area. BSNL has vast range of
product as well as better infrastructure it makes the to deal with any kind of customer.
Dealing in urban area now it has also opportunities in rural area. Threats The
company operates in an industry, which is highly competitive and faces intense
Competition from other service provider, who enjoy certain advantages in their
Procurement as well as in selection of technology. 17
18. 18. BSNL have several regional offices to localize its operations in India REGIONAL
OFFICES OF BSNL MEERUT DEHRADUN DELHI LUCKNOW GROWTH PLAN OF
BSNL 18
19. 19. BSNL's future plan include a fast expansion programme of increasing the present
93 million lines to twice that number by 2009 and some 120 million lines by 2010.
The shift in demand from voice to data domination, and from wire line to wireless,

has revolutionized the very nature of the network. BSNL has already set in place
several measures that should enable it to evolve i To set up Internet Nodes
progressively up to District headquarters level. Upgrading existing STD/ISD PCOs to
full fledged Public Tele-Info Centers (PTIC) for supporting Multi media capability and
Internet Access 19 To provide Intelligent Network Services, progressively all over
the country (major cities have already been covered). ISDN services shall be
extended to all the district headquarters, subject to demand. Extensive use of
Optical fiber System in the local, Junction and long distance network so as to make
available sufficient bandwidth for the spread of Internet and Information technology.
Digital connectivity shall be made available to all the exchanges by 2007-09 To
provide digital transmission links up to all SDCAs. The Network shall be made fully
digital. All the technologically obsolete analog exchanges will be replaced with digital
exchanges. The telephone connection shall be provided on demand and it shall be
sustained. nto a fully integrated multioperator by 2009 and its incumbent status,
size, infrastructure and human resource should certainly, give it a distinct advantage.
Consolidation of the network and maintaining high quality of service comparable to
International standards is the key aim of the Growth Plan. Objective of the plan are:
20. 20. INTRODUCTION 20
21. 21. PERFORMANCE APPRAISAL Management Performance appraisal is a method
of evaluating the evaluating the behavior of employees Performance appraisal or
merit rating is one of the oldest and most universal practices of in the work spot,
Normally including both the quantitative and qualitative aspects of job performance.
Performance appraisal can be an effective instrument for helping people grow and
develop in organizational setting. Through a Well organized appraisal system. An
employee can create learning spaces for himself in an organization. Effectively
practiced and development oriented performance appraisal & Review system,
substantially contribute to the organization health. Organization cannot do away with
PERFORMANCE APPRAISAL. Some form of assessment of performance on a
continuing basis is essential for survival as well as growth of an organization. If and
develop yardsticks to measure it, if you want to improve performance. The performer
has to be able to understand it. Performance appraisal is a systematic appraisal of
the employees personality traits and performance on the job and is designed to
determine his contribution and relative worth to the firm. 21
22. 22. A formal definition of performance appraisal is that, it is the systematic evolution
of the individual with respect to his or her performance on the job and his or her
potential for development Performance appraisal is a formal structured system of
measuring and evaluating an employees job, related behaviors and out comes to
discover how and why the employee is presently performing on the job an how the
employee can perform effectively in the future so that the employee, organization

and society all benefit. Under performance appraisal, we evaluate not only the
performance of a worker but also his potential for development. 22
23. 23. COMPONENTS OF APPRAISAL EVALUATION As we have seen performance
evolutions can be made a verity of reasonscounseling, promotion, research, salary,
administration or a combinations of these therefore it is necessary to begin by stating
very clearly the objectives of the evolution program. Having done this, the personal
evolution system should address the questions, who, what, when, where, how? Of
performance appraisal WHO The appraisal can be accomplished by one or more
individuals involving a combination of the immediate supervisor, a higher level
manager, a personal manager, the assessees peers, the assessee himself and the
assessees subordinates. Usually the immediate supervisor must be interested with
the task of rating the assessee because he his most familiar with his work, and
because he is also responsible for recommending or approving personal action
based on the performance appraisal. The staff specialists, i.e. the personal officer
also do appraisal. They may advise the supervisor while evaluating their
subordinates stressing the need for evidence for making specific appraisal
judgments and comparing a particular subordinates evolution with those of others.
The appraisal of an individual may also be done by his peers such appraisal proves
effective in predicting future management success. 23
24. 24. This approach has its disadvantage that the individual may rate himself
excessively high then it would be if his superior rated him. Many companies use
rating committees to evaluate employees. These committees consist of supervisors,
peers, and subordinates. WHAT The what of the performance appraisal consists
in appraising non supervisory employees for their current performance and
managers for potential? It also includes evaluation of human trades. WHY The
why of an appraisal is concerned with a) Creating and maintaining a satisfactory
level of performance of employees in there present jobs. b) Highlighting employee
needs and opportunities for personal growth and development. c) Promoting
understanding between the supervisor and his subordinates. d) Providing a useful
criterion for determining the validity of selection and training methods and techniques
and forming concrete measures for attracting individual of higher caliber to the
enterprise. 24
25. 25. WHEN The when answers the query about the frequency of appraisal? It has
been suggested in formal counseling should occur continuously. The manager
should discuss an employees work as soon as possible after he has judged it.
WHERE The where indicates the lo0cation where an employee may be evaluated.
It is usually done at the place of work or office of the supervisor. HOW Under how
the company must decide what different methods are available and which of these

may be used for performance appraisal. Based on the comparative advantages and
disadvantages it is decided which method suit the propose best. 25
26. 26. To help the superiors to have proper understanding about there subordinates.
26 To facilitate fair and equitable compensation based on performance. To
facilitate for testing and validating selection tests, interview techniques through
compeering there scores with performance appraisal ranks. To contribute to the
employee growth and development through training, self and management
development program. To guide the job changes with the help to continuous
ranking. To provide information making decision for rewardingly of retrenchment
etc. To create and maintain a satisfactory level of performance. PURPOSE OF
PERFORMANCE APPRAISAL
27. 27. WHAT SHOULD BE RATED The seven criteria for assessing performance are: 1.
Quality: the degree to which the process or result of carrying out an activity approach
perfection 2. Quantity: the amount produce expressed in monetary terms number of
units, or number of completed activity cycles 3. Timeliness: the degree to which an
activity or an result produced 4. Cost effectiveness: the degree to which the use of
the organizations resources (e.g. human, monetary, technological, material) is
maximized in the sance of waiting the highest gain 5. Need for supervision: the
degree to which a job performer can carry out job function without supervisory
assistance 6. Interpersonal impact: the degree to which performer promotes feeling
of self esteem, goodwill and cooperation among co- workers and subordinates. 7.
Training: need for training of improving his skills knowledge. 27
28. 28. Generate significant relevant, free and valid information about employees thus
good performance appraisal and review system should primarily focus on employee
development 28 Help identifying employees for the porpoise of motivating, training
and developing them. Contribution to the growth and development of the employee
thru helping in realistic goal setting Generate adequate feedback and guidelines
from the reporting officers to the employee. Help employee to Krishak Bharti
Coperative Ltd. His weaknesses, and improve his strengths, and thus enable him to
improve his performance and that of the department. A good performance
appraisal has following objectives:OBJECTIVE OFPERFORMANCE APPRAISAL
29. 29. Future oriented: Management by objectives Psychological appraisals
Assessment center 29 Past-oriented: Rating scales Checklist Forced choice
method Forced distribution Critical incident method Behaviorally anchored scales
Field review method Annual confidential report Essay method Cost accounting
approaches Comparative evolution approach Ranking method Paired comparison
method METHODS OF APPRAISAL Broadly all the approaches to appraisal can
be classified into:

30. 30. Forced choice method: In this the rater is given a series of statements about
employee. These statements are arranged in block of two or more, and the rater
indicates which statements is most or least disruptive of the employee 30 Checklist:
In this method, the raters dont evolutes employee performance, he supplies reports
about it and the personal department does the final rating a series of question are
presented concerning and employee to his behavior. The rater, then, to indicate if the
answer to a question about an employee in positive or negative. Generally , the
questions are on yes/no pattern. Rating scales: This is the simplest and the most
popular technique for employee performance. The typical rating scales system
consists of several numerical scales, each representing job related performance
criterion such as dependability, initiative output, attendance, attitude, co-operation
and the like. Each scales ranges from excellent to poor. The rater checks the
appropriate performance level on each criterion, and then computes the employees
total numerical scores. METODS OF PERFORMANCE APPRAISALS Past
Oriented Methods
31. 31. Behaviorally Anchored Rating Scales Sometimes this is called behavioral
expectation scales, are Critical incident method The, approaches focus on certain
critical behaviors of an employee that makes all the difference between effective and
non effective performance of a job. Such incidents are recorded by the superiors as
and when they occur. Annual confidential report method In this method each
employee is rated confidentially by one or more senior officers for his performance.
The report deals with the years work and general opinion of the rater towards the
employee. The main problem with his method is that it is not data based and the
appraisal is done the bases of impression. 31 Field review method This is an
appraisal by someone outside the assesses on department usually someone from
the corporate office or H.R department. The outsider review employee records and
holds interviews with the rate and his or her superior . the method is primarily used
for make promotional decision at the managerial level. rating scales whose scale
point are determined by statements of effective and ineffective behaviors. A rater
must indicates which behavior on each scale best describes an employees
performance.
32. 32. Comparative Evolution Approaches These are a collection of a different methods
that compare one workers performance with that his / her co-workers. Supervisors
usually conduct comparative appraisals. As these appraisals can results in a ranking
from best to worst they are useful on deciding merits-pay increases promotions and
organizational rewards. We can classify it intoa) Ranking method In this, the superior
his or her subordinates in the order of there merits starting from the best to the
worst,. This method is subject to the hallo and Recency effects, although ranking by
two or more raters can be averaged to help reduce biases. It advantages include

ease of administration and explanation. b) Paired Comparison method :Under this

method the appraiser compares each employee with every other employee, one at a
time. The number of comparisons may be calculated with the help of formula, which
reads thus-: N (N-1)/2 32 Easy method In the essay method, the rater must
describe the employee with in a number of broad categories such asa) The raters
overall impression of the employees performance b) The promotability of the
employee c) The jobs that the employee is now able or qualified to perform d) The
strength and weaknesses of the employee and the traning and the development
assistant required the employee.
33. 33. 360 DEGREE PERFORMANCE APPRAISAL Typical appraisers are:
supervisors, peers, subordinates employees themselves users of service and
consultants. Performance appraisal by all these parties is called 360 DEGREE
PERFORMANCE APPRAISAL 1. Supervisors: Supervisors include superiors of the
employee other superiors having knowledge about the work of the employee and
department head or manager. General practices is that immediate superiors
appraise the performance, hitch in turn reviewed by the departmental head
/manager. 2. Peers:Peer appraisal may be reliable if the work group is stable over a
reasonably long period of time and perform tasks that require integration. 3.
Subordinates:The concept of having superiors rated by subordinates is being used in
most organizations today especially in developed countries. Such a novel method
can be useful in other organizational settings too provided the relationship between
superiors and subordinates are coordinal. 4. Self-Appraisal:In individuals understand
the objective they are expected to achieve and the standard by which they are to be
evaluated, they are to a great extend in the best position to appraise their own
performance. 33
34. 34. 5. Users of Service Customers:Employee performance in service organization
relating to behaviors, promptness, speed in doing the job and accuracy, can be
better judged by the customers or users of services. 6. Consultants:Sometimes
consultants may be engaged for appraisal when employees or employers not trust
supervisor and management does not trust the selfappraisal a peer appraisal or
subordinate appraisal. 34
35. 35. THE POST APPRAISAL INTERVIEW This interview provides the employee the
feedback information, and an opportunity to the appraiser to employee his rating, the
trail and behavior he has taken into consideration etc. Further it helps both the
parties to review standards, set new standards based on the reality factors and helps
the appraisal to offer his suggestion, help, guide and coach the employee for his
advancement . Thus, the post appraisal interview is designed to achieve the
following the objectives. To let employee know where stand To help employee do
better job by clarifying what is expected of them To plan opportunities for

development and growth To provide an opportunity for employees to express

themselves on performance related issue. Thus, post appraisal interview is most
helpful to the employee as well as his superior. 35
36. 36. KEY ELEMENTS OF PA SYSTEMS 1) Performance Improvement:Performance
feedback allows the employee, manager, and personnel specialists to interview with
appropriate action to improve performance. 2) Compensation
Adjustments:Performance evaluations help decision makers determine who should
receive pay raises. Many firms grants part or all of their pay increase and bonuses
based upon merit, which is determine mostly through performance appraisal. 3)
Placement Decisions:Promotions, transfers, and demotions are usually based on
past on anticipated performance. 4) Training and Development Needs:Poor
performance may indicate the need for retraining. Likewise, good performance
indicate untapped potential that should be developed. 5) Career Planning And
Development:Performance feedback guides career decisions about specific career
paths. 6) Information Inaccuracies:Poor performance indicate errors in job analysis
informations human resource plan, or other parts, or the personal management 36
37. 37. informations systems. Reliance on inaccurate information may have led to
inappropriate hiring, training, or counseling decisions. 7) Job Decision Errors:Poor
performance may be a system of ill-conceived job designs. Appraisals help diagnose
these others. 8) Equal Employment opportunity:Accurate performance appraisals
that actually measure job- related performance ensure that internal placement
decisions are not discriminatory. 9) Feedback to human resource:Good/bad
performance throughout the organization indicate how well the human resource
function is performing. 37
38. 38. STAGES OF PERFORMANCE APPRAISAL PROCESS 1 2 3 4 5 6 7 8 9
PERFOMANCE STANDEARDS ARE ESTABLISHED INFORM THESE
STANDARDS INSTRUCTION GIVEN FOR APPRAISAL FINDIND OUT THE
INFLUENCE COMPARING THE PERFORMANCE FINDING OUT DEVIATION
COMMUNICATING, THE ACTUAL PERFORMANCE SUGGESTING NECESSARY
CHANGES FOLLOW-UP OF PERFORMANCE APPRAISAL REPORT 38
39. 39. The Ninth stage is fallow up performance appraisal report. This stage includes
guiding, counseling coaching and directing the employee or making arrangements
for the training and development of the employee. 39 The Eighth stage is
suggesting necessary changes in standards, job analysis internal and external
environment. The Seventh stage is communicating, the actual performance of the
employee and other employees doing the same job and discuss with him the reasons
for positive or negative deviations from the preset standards as the case may be.
The Sixth stage is comparing the actual performance with the standards and finding
out deviations. The Fifth stage is comparing performance with that of other

employee and previous performance . The Fourth stage is finding out the influence
of various internal and external factors on actual performance. The Third stage is
following the instruction given for appraisal measurement of employee performance
by the appraisers through observations interview, records and reports The Second
stage, is to inform these standards to all the employees including appraisers. At
the First stage, performance standards are established based on job description and
job specification. The standard should be clear, objective and incorporate all the
factors. Performance Appraisal is a Nine-Step Process:
40. 40. The Error Central Tendency:Some raters fallow play safe policy in-rating-byrating all the employee on the middle point of the rating scale and they avoid rating
the p[people at both the extremes of the scale. They fallow play safe policy 40 Halo
Effect:It is the tendency of the raters to defend excessively on the rating of one trait
or behavioral consideration in rating all other traits or behavioral consideration. One
way of minimizing the halo effect is appraising all the employee by one trait before
going to rate basis of another trait. PROBLEMS OF PERFORMANCE APPRAISAL
The major problem in performance appraisal :1) Rating Biases:The problem
subjective measure (is that rating which is not verifiable by others) has the
opportunity for biases include:- a) Halo effect b) The error of central tendency c) The
leniency and strictness biases d) Personal prejudice e) The Recency effect
41. 41. The Recency Effect:The raters generally remember the recent actions of the
employee at the time of rating and rate on the basis of this recent action. 1)
Favorable or unfavorable rather than on the whole activities. 2) Failure of the superior
in conducting performance appraisal and post performance appraisal interview. 3)
Most part of the appraisal is based on subjectivity. 4) Less reliability and validity of
the performance appraisal technique. 5) Negative ratings affect interpersonal
relations system. 41 The leniency and Strictness:The leniency bias crops when
some raters have an tendency to be liberal in their rating by assigning higher rates
consistently such rating do not several any purpose equally damaging one is
assigning consistently low rates. d) Personal Prejudice : If the rater dislike any
employee or any group, he may rate them at the lower them which may distort the
rating purpose affect the career of these employee. because of a answerability to
management or lack of knowledge about the job and person he is rating or least
interest in his job.
42. 42. WHY APPRAISAL TECHNIQUES PROVE FAILURE Performance appraisal
techniques techniques have often failed to give a correct assessment of the
employee. The causes of such failure are:1) The supervisor plays dual and
conflicting role of the both the judge and the helper. 2) Too many objectives often
cause confusion. 3) The supervisor feels that subordinate appraisal is not rewarding.
4) A considerable time gap exist between two appraisal programs. 5) The skills

required for daily administration and employee development are in conflict. 6) Poor
communication keeps employees in the dark about what is expected of them. 7)
There is the difference of opinion between a supervisor and a subordinate
concerning the liters performance. 8) Feedback on appraisal is generally
unpleasant for both supervisor and subordinate. 9) Unwillingness on the part of
supervisor to tell employee plainly how to improve their performance. 42
43. 43. Employee Happiness-: Are the employees happy with their wages, rewards and
hours of work given? 43 Employee Knowledge-: How familiar (what knowledge) are
your employee with the running of machine/equipments, products of the companies?
Does employee require training? Use of Employees-: Is the business maximizing
its use of employee to best suit the business needs? Safe and Friendly Work
Environment-: What sort of environment are you providing your employees. About
Employee:
44. 44. These debit points will be determine depending on gravity of error, quantum of
loss, extraneous/ inhibiting factors, etc. as a part of appraisal process. KRA 6 It is
intended to cover every individual distinguishing contribution/ efforts made in respect
of either assigned projects or innovations, cost saving 44 Any drop / deviation from
the targets will lead to Debit to while the overall debit points for the negative
variance vis--vis has been prescribed for the team the individual will be liable to the
lose additional points bin case of direct responsibility for deviation. For
achievement of the set targets, the prescribed credit points would accrue to all team
members for the team performance and to an individual for the individual
performance. Individual Matrix KRA 1 to 5 Team matrix PERFORMANCE
MATRIX In principle the individual performance matrix (IPM) can be notionally
divided into two parts-:
45. 45. measures value additions etc. this has been specifically design to
acknowledgement and reward individual excellence. KRA 7 (Health. Safety/fire,
Environment) Debit will apply to an individual and his superiors but his not peers /
others who may not be connected with the safety incident. Similarly there is scope to
earn separate credit points for an individual through safety suggestion and reporting
of near misses and unsafe acts/ conditions/ KRA 8 (Training and HR) this is
intended to cover self training, training of subordinates, for the training programs
organized by learning centre are HR based on individual need assessment of self &
subordinates. These also include quarterly review, counseling and maintaining of
performance diary. KRA 9 (Quality System & Documentation) this include proper
maintenance of each and every documents of ISO 9000 and 14001 for surveillance
audits, also revision of SOPs / SOCs decided by the plant. 45
46. 46. KRA 10 (Industrial Relations ) there is a scope for a team to earn separate credit
points based on the number of implement suggestions. In this case the team means

the concern immediate supervisor, production / department manager and plant

manager. Disciplinary Action It will be deemed to be complete when the matter is
brought to logical Conclusion resulting in either appropriate punishment or
withdrawal of Charge sheet. However no debit will be accrued in the event of
Prolonged enquiry beyond the control of the employee. Further for the Discipline
violations not reported and discovered. Tier - II The appraisal for managerial key
dimension determined carder wise With 20% weightage. 46
47. 47. Performance Diary The performance diary is a meant to track / capture the
significant performance events whether positive or negative (Credit or Debit). This is
also the tool for recording the personal contribution in terms of innovative ideas,
suggestions, cost saving efforts etc. The filling up the performance diary is most
critical and important aspect on which the entire system rests. Each and every
individual has responsibility to highlight event in the performance diary, timely and
properly. While for an individual on the other hand, it may mean establishing clear
responsibility for a fault/formal operation / misjudgment etc. on the other hand it will
mean recording of credits worthy efforts / contribution which may otherwise go
unnoticed. It is also essential to mention the impact of the incident in the terms of
beneficial and detrimental consequences as the case may be. Where ever possible,
the consequence needs to be quantified. Two important factors which is likely to be
recorded in the performance diary are as follows-: 47
48. 48. Facilitating Factor: Are those factors that are beyond the control of the appraise
that have led to better performance. Example: Availability of resources in time .
Inhibiting Factor: Are those factors that are beyond the control of the appraise they
have led to poor performance. EXAMPLE: power failure that has led to loss of
output. Whom it will be Available: The performance diary will remain in custody of the
immediate superior and it will be the joint responsibility of the appraise to maintain
the sanctity of this instrument through timely and meticulous recording. Infect,
maintenance of performance diary has been kept as the important parameter for
performance assessment. Who will be The Appraiser: The appraiser will be the
sectional head / departmental head. 48
49. 49. RESEARCH METHODOLOGY 49
50. 50. RESEARCH The research design of this project is exploratory. Though each
research study has its own specific purpose but the research design of this project
on BSNL is exploratory in nature as the objective is the development of the
hypothesis rather than their testing. The research designs methods of financial
analysis. Through of comparative balance sheet in comparative statement, I am
studying on balance sheet of BSNL of five year. So taking comparative statement, I
am going to analyzed of five years balance sheet of BSNL METHODOLOGY Every
project work is based on certain methodology, which is a way to systematically solve

the problem or attain its objectives. It is a very important guideline and lead to
completion of any project work through observation, data collection and data
analysis. Research Methodology comprises of defining & redefining problems,
collecting, organizing & evaluating data, making deductions & researching to
conclusions. - Clifford Woody RESEARCH DESIGN Research Design refers to
"framework or plan for a study that guides the collection and analysis of data". A
typical research design of a company basically tries to resolve the following issues:
50
51. 51. a) Determining Data Collection Design b) Determining Data Methods c)
Determining Data Sources d) Determining Primary Data Collection Methods e)
Developing Questionnaires f) Determining Sampling Plan (1) EXPLORATIVE
RESEARCH DESIGN: Explorative studies are undertaken with a view to know more
about the problem. These studies help in a proper definition of the problem, and
development of specific hypothesis is to be tested later by more conclusive research
designs. Its basic purpose is to identify factors underlying a problem and to
determine which one of them need to be further researched by using rigorous
conclusive research designs. (2) CONCLUSIVE RESEARCH DESIGN: Conclusive
Research Studies are more formal in nature and are conducted with a view to
eliciting more precise information for purpose of making marketing decisions. These
studies can be either: a) Descriptive or b) Experimental Thus, it was mix of both the
tools of Research Design that is, Explorative as well as Conclusive. 51
52. 52. SAMPLING PLAN: Sample Size = 50 Employees Sample Area = BSNL lucknow
Utter Pradesh Duration = 6 weeks RESEARCH PROBLEM I have selected that
PERFORMANCE APPRAISER as research problem for my summer training project.
As a research problem is the situation that causes the researcher to feel
apprehensive, confused and ill at ease. It is the demarcation of a problem area within
a certain involving the WHO or WHAT the WHERE the WHEN and the WHY of the
problem situation. RESEARCH OBJECTIVE How productivity relates with
performance appraisal. In addition, the major factors of performance appraisal,
which have taken a part in increasing productivity of the organization. 52
53. 53. Survey 53 Search of secondary data and literature INTERVIEW: The
interview method of collection data involves presentation of oral- verbal stimuli and
reply in terms of oral-verbal response. EXPLORATORY RESEARCH Exploratory
research studies are also termed as formulating studies. The main purpose of such
studies that of formulating of the problem for more precise investigation or of
developing the working hypotheses from an operational point of view. An exploratory
research focuses on the discovery of ideas and is generally based on secondary
data. It consists: QUESTIONNAIRE: The term questionnaire usually refers to a self
administered processes whereby he respondent himself read the question and

records without the assistance of an interviewer. RESEARCH INSTRUMENT

USED
54. 54. SEARCH OF SECONDARY DATA AND LITERATURE : The quickest and most
economical way is to find possible hypotheses from the available literature. The past
research may be suitable may suitable sources of information to develop new
hypotheses. The researcher can search them for his research purpose. SURVEY
REPORT: Survey means the survey of people who have had practical experience
with the problem to be study. These individual can be top executives, sales manager,
wholesaler and retailer processing valuable knowledge and information about the
problem environment. 54
55. 55. INTERVIEW-: The interview method of collection data involves presentation of
oral-verbal stimuli and reply in terms of oral- verbal response. SAMPLING
TECHNIQUE USED When field studies are under are und QUESTIONNAIRE-: The
term questionnaire usually refers to a self administered process whereby the
respondent himself read the question and records without the assistance of an
interviewer. RESEARCH INSTRUMENTS USED: I have used the following
research instrument in my project :- er taken in practical life, consideration of time
cost and some other factors almost invariably lead to selection of respondents. The
selected respondents constitutes a sample and the selection process is called
sampling technique. A sample design is define plan determined before any data are
actually collected for obtaining a sample from a given population. Sample can be
either probability sample or non probability sample. I have selected simple random
sampling in my project. 55
56. 56. SIMPLE RANDOM SAMPLING: This type of sampling is also known as chance
sampling or probability sampling where each item in the population has an equal
chance of being selected in the sample. SAMPLE SIZE: When a survey is
undertaken and when it is not possible to cover the entire population the researcher
has to answer the basic question how large should be sample be ? the sample size
decision is related directly to research cost. The intended sample size is the number
of participants planned to be included in the trial, usually determined by using a
statistical power calculation. The achieved sample size is the number of participants
enrolled, treated , or analyzed in the study. I have taken 50 people in my sample size
as the sample size should be neither so small nor so large. 56
57. 57. Previous report 57 Books Internet Magazine Company profile
Interview method 2. SECONDARY DATA: Those data that have been compile by
some agency other than user. Sources: Questionnaire METHOD USED FOR
DATA COLLECTION The task of data collection begins after a research after a
research problem has been defined and research design chalked out. While deciding
about the method of data collection to be used for the study the researcher should

keep in mind two types of data-: 1) Primary Data 2) Secondary Data 1. PRIMARY
DATA Those data that have been observed and recorded by the researcher for the
first time in their knowledge. Sources:
58. 58. ANALYTICAL TOOLS USED The term analysis refers to the computation of
certain measures along with searching for pattern of relationship that exists among
data group. Analysis is essential for a scientific study and for ensuring that we have
all relevant data for making contemplated comparison. Therefore , I have used
Tabulation, Graphs &charts in my project. 58
59. 59. DATA ANALYSIS 59
60. 60. 1. Are you aware of the objective of the performance appraisal system?
OPTIONS NO OF RESPONDENT(SAMPLE SIZE 50) PERCENTAGE VERY MUCH
42 84% SOME WHAT 7 14% DONT KNOW 1 2% 90 80 70 60 50 40 30 20 10 0
very much some what don't know INTERPRITATION- 84% Employees are aware of
the object of the performance appraisal system. 60
61. 61. 2. Performance appraisal helps the organization in achieving goal. OPTIONS
NOS OF RESPONDENT(Sample PERCENTAGE size 50) YES 38 76% NO 10 20%
DONT KNOW 2 4% 80 70 60 50 40 30 20 10 0 yes no don't know INTERPRITATION
- 76% Employees say yes that performance appraisal helps the organization in
achieving goal. 61
62. 62. 3. Hold meeting in the beginning of the year to explain & clarify activity task &
goals to be achieved. OPTIONS NOS OF RESPONDENT(Sample size 50)
PERCENTAGE YES 39 78% NO 11 22% 90 80 70 60 50 40 30 20 10 0 yes
INTERPRITATION-: no 78% Employees say that yes organized meetings helps goal
and task. While the other 22% employees that is not very much helpful. 62
63. 63. 4. Organization has to make a fixed duration for performance appraisal.
OPTIONS NOS OF RESPONDENT (Sample size 50) PERCENTAGE YES 40 80%
NO 10 20% 90 80 70 60 50 40 30 20 10 0 yes INTERPRITATION -: no 80%
Employees agree with that is organization should have to make a fixed duration for
performance appraisal. While the other 20% employees do not agree with this
statement. 63
64. 64. 5. Satisfied for point allocation on the basis of KRAs & managerial dimension.
OPTIONS NOS OF RESPONDENT(Sample size 50) PERCENTAGE FULLY
SATISFIED 20 40% SATISFIED 26 52% DISSATISFIED 2 4% UNCERTAIN 2 4% 60
50 40 30 20 10 0 fully satisfied satisfied INTERPRITATION-: dissatisfied uncertain
40% Employees are fully satisfied for point allocation on the basis of KRAs and
managerial dimension. 64
65. 65. 6. Performance appraisal affects the working efficiency of employees. OPTIONS
NOS OF RESPONDENT(Sample size 50) PERCENTAGE YES 42 84% NO 8 16%
90 80 70 60 50 40 30 20 10 0 yes no INTERPRITATION-: 84% Employees say that

yes performance appraisal system affect the working efficiency of employee. While
the other 16% employees do not agree with this statement. 65
66. 66. 7. Appraisal system is able to develop high result orientation approach.
OPTIONS NOS OF RESPONDENT(Sample size 50) PERCENTAGE YES 47 94%
NO 3 6% 100 90 80 70 60 50 40 30 20 10 0 yes no INTERPRITATION-: 94%
Employees say that yes the appraisal system is able to develop high result
orientation approach. While the other 6% employees do not agree with us. 66
67. 67. 8. The systems will also contribution in potential appraisal. OPTIONS NOS OF
RESPONDENT(Sample size 50) 36 PERCENTAGE 72% YES 10 20% 4 8% NO
DONT KNOW 80 70 60 50 40 30 20 10 0 yes no don't know INTERPRITATION-:
72% employees think that the systems will also Contribution in potential appraisal. 67
68. 68. 9. Promotion process in the organization is based on OPTIONS NOS OF
RESPONDENT(Sample size 50) PERCENTAGE PERFORMANCE 2 4%
EXPERIENCE 6 12% BOTH 42 84% 90 80 70 60 50 40 30 20 10 0 Performance
experience both INTERPRITATION-: 4% employees say that promotion says that
process in the organization is based on performance, 12% employees say that
based on experience and 84% say both. 68
69. 69. 10 .The present performance appraisal system is transparent & Free from bias.
OPTIONS NOS OF RESPONDENT(Sample size 50) PERCENTAGE YES 42 84%
NO 8 16% 90 80 70 60 50 40 30 20 10 0 YES NO INTERPRITATION-: 84%
Employees agree with this statement that the present performance appraisal system
is transparent and free from bias. 69
70. 70. 11 .Satisfied with the current performance appraisal system. PERCENTAGE
OPTIONS NOS OF RESPONDENT(Sample size 50) HIGHLY SATISFIED 27 54%
SATISFIED 18 36% DISSATISFIED 1 2% JUST SATISFIED 4 8% 60 50 40 30 20 10
0 Highly satisfied INTERPRITATION-: Satisfied Dissatisfied Just satisfied 54%
Employees are highly satisfied with the current Performance appraisal system. While
36% employees are satisfied with the current performance appraisal system. 70
71. 71. LIMITATIONS 71
72. 72. LIMITATIONS A few limitations and constraints came in way of conducting the
present study, under which the researcher had to work are as follows: Although all
attempts were made to make this an objective study, biases on the part of
respondents might have resulted in some subjectivity. Though, no effort was
spared to make the study most accurate and useful, the sample Size selected for
the same may not be the true representative of the Company, resulting in biased
results. This being the maiden experience of the researcher of conducting study
such as this, the possibility of better results, using deeper statistical techniques in
analyzing and interpreting data may not be ruled out. 72
73. 73. SUGGESTIONS AND CONCLUSION 73

74. 74. SUGGESTIONS After having analyzed the data, it was observed that practically
there was no appraisal in the organization. To be an effective tool, it has to be on the
continuous basis. This is the thing that has been mentioned time and again in the
report, as, in the absence of continuity, it becomes a redundant exercise. Before
actually deciding drafting what should be the kind of appraisal the following things
should be taken care of: 1. The very concept of performance appraisal should be
marketed throughout the organization. Unless this is done, people would not accept
it, be it how important to the organization. 2. To market such a concept, it should not
start at bottom, instead it should be started by the initiative of the top management.
This would help in percolating down the concept to the advantage of all, which
includes the top management as well as those below them. This means that the top
management has to take a welcoming and positive approach towards the change
that is intended to be brought. 3. Further, at the time of confirmation also, the
appraisal form should not lead to duplication of any information. Instead, detailed
appraisal of the employees work must be done which must incorporates both the
work related as well as the other personal attributes that are important for work
performance. 4. It should be noted that the appraisal form for each job position
should be different as each job has different knowledge and skill requirements. 74
75. 75. There should not be a common appraisal form for every job position in the
organization. 5. The job and role expected from the employees should be decided
well in advance and that too with the consensus with them. 6. A neutral panel of
people should do the appraisal and to avoid subjectivity to a marked extent, objective
methods should be employed having quantifiable data. 7. The time period for
conducting the appraisal should be revised, so that the exercise becomes a
continuous phenomenon. 8. Transparency into the system should be ensured
through the discussion about the employees performance with the employee
concerned and trying to find out the grey areas so that training can be implemented
to improve on that. Ideally in the present day scenario, appraisal should be done,
taking the views of all the concerned parties who have some bearing on the
employee. But, since a change in the system is required, it cannot be a drastic one. It
ought to be gradual and a change in the mindset of both the employees and the
head is required. 75
76. 76. Internal Records of Organization WEBSITES- www.bsnl.net www.bsnl.co.in 76
Annual Report of Organization BIBLIOGRAPHY BOOKSHuman Resource - V.S.P
Rao Research Methodology - C. R. Kothari BSNL Manual - Company Magazines
77. 77. QUESTIONNAIRE (PERFORMANCE APPRAISAL SYSTEM AT B.S.N.L.)
Name..
Designation
Department 1) Are you aware of

the objective of the performance appraisal system? a) Very much b) Some what c)
Dont know 2) Performance appraisal helps the organization in achieving goal? a)
Yes b) No c) Cant say 3) Do you hold meeting in the beginning of the explain &
clarify activity task & goals to be achieved? a) Yes b) No 4) Should organization have
to make a fixed duration for performance appraisal? a) Yes b) No 77
78. 78. 5) To what extent are you satisfied for point allocation on the basis of KRAs &
managerial dimension? a) b) c) d) Fully satisfied Satisfied Dissatisfied Uncertain 6)
Do performance appraisal affect the working efficiency of employee? a) Yes b) No 7)
Whether the appraisal system is able to able to develop high result a) Yes b) No 8)
Do you think that the system wills also contribution in potential appraisal? a) Yes b)
No c) Cant say 9) Promotion process in the organization is based ona) Performance
b) Experience c) Both 10) Do you think that the present that the present performance
appraisal system is transparent & free bias? a) Yes b) No 78
79. 79. 11) Are you satisfied with the current performance appraisal system? a) b) c) d)
Highly satisfied Satisfied Just satisfied Dissatisfied Give your suggestion for the
performance appraisal system in BSNL Lucknow..