Blackbook Project On Pa

A Training Report
PERFORMANCE APPRISAL
IN
BAJAJ ALLIANZ LIFE INSURANCE CO. LTD,
CANNOUGHT PLACE DELHI
(Submitted in Partial Fulfillment of the Requirement of Bachelor of Business Administration, Distance
Education)
Punjab Technical University, Jalandhar
Project Guide: Ashwin Divakaran

Name: Ashwin Divakaran
Designation:
Zonal HR
Submitted By: Nidhi kukreja

Name: Nidhi kukreja
Enrollment No.:1655
Specialization: Human Resources
Remark Of External Examiner
Name:
Designation:
Marks Scored:
Signature:
Session 2008-2011
Indraprastha Institute of Technology & Management, New Delhi
Punjab Technical University, Jalandhar
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Chapter 1
Company Profile
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COMPANY PROFILE
Mi ssi on : To becom e a r esponsi bl e cust om er focused m arket l ead er. We st il l st ri ve t o
unde rst and the i nsuran ce needs of t he consum ers and t ransl at e i t i nt o a fford abl e product s
t hat del i ver val ue fo r m one y.
Visi on :
To be t he fi rst choi c e i nsurer for cust om e rs.
To be t he pre fer red em pl o yee fo r st aff i n t he i nsuranc e i ndust r y.
To be t he num ber one i nsurer for c reat i n g sha rehol der val ue.
B ajaj Al l i an ze Li f e In su ran ce
Is the fast est growi n g pri vat e l i fe i nsurance com pany i n Indi a.
C urrent l y have over 300000 sat i sfi ed cust om ers.
Have Customer care centers in 156 cities with 28000 Insurance Consultant providing the
finest customer service.
Baj aj Al l i anz Gener al Insur anc e Com pan y Li m i t ed i s a j oi nt vent ure bet ween Baj aj Aut o
Li m i t ed and Al l i anz AG of Germ an y. Bot h enj oy a reput at i on of ex pert i se, st abi l it y and
st rengt h.
Baj aj Al l i anz Gener al Insur anc e recei ved t he Insu ran ce R egul at or y and Devel opm ent
Aut hori t y (IR DA) cert i fi c at e of R egi st rat i on (R 3) on Ma y 2 n d , 2001 t o conduct General
Insur anc e busi ness (i ncl udi ng Heal t h Insu ran ce busi ness) in Indi a. The Com pan y has an
aut hori z ed and pai d up capi t al of Rs.110 crores. Baj aj Aut o hol ds 74% and Al l i anz hol ds the
rem ai ni ng 26%. AG, Germ an y.
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In it s fi rst yea r of operat i ons t he com pany has acqui red t he NO. 1 st at us am ong the pri vat e
non- li fe i nsurers. As on 31 s t March 2003, Baj aj Al l i anz e Gener al Insur anc e m ai nt ai ned i t s
l eadershi p posi ti on b y garne ri ng a prem i um i ncom e of R s.300 C rores. Baj aj Al li anz e al so
becam e one of t he few com pani es t o m ake a profi t i n it s fi rst ful l yea r of operat i ons. Baj aj
Al l i anz m ade a profi t aft er t ax of Rs.9.6 crores.
Baj aj Al l i anz e toda y has a net work of 40 offi ces spread across t he l engt h and breadt h of t he
count r y. From S urat to Sl i l i guri and J am m u t o Thi ruvanant hapuram , al l t he 38 offi ces are
i nt erconnect ed wi t h the Head Offi ce at Pune .
In t he fi rst hal f of t he current fi nanci al yea r, 2004-05, Baj aj Al li anz gener at ed a p remi u m
i n come of Rs.405 crores, achi evi n g a gro wt h of 84% and regi st er ed a 52% gro wt h i n Net
profi t of Rs. 20 C rores over t he l ast ye ar for t he sam e peri od. In t he fi nanci al yea r
2003-04,
t he prem i um earn ed was Rs.480 C rores, whi ch i s a j um p of 60% and t he profi t z oom ed by
125% to R s. 21.6% C rores.
S hareh old e rs & Promot ers
B ajaj Au to L i mi ted
Baj aj Aut o Li m i t ed i s t he l argest m anufact ure r of t wo and t hree- wheel ers in Indi a and
al so one of t he l argest m anufact ure rs i n t he worl d. Baj aj Aut o has been i n operat i on for over
55 yea rs . As a prom ot er of Baj aj Al l i anz General Insur ance C om pan y Lt d., Baj aj Aut o has t he
fol l owi ng t o offer:
Vast di st ri buti on net work.
Knowl edge of In di an consum ers.
Fi nanci al st rengt h and st abi li t y t o support t he i nsurance busi ness
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A ll i an z AG, Germ an y
Allianz Group is one of the world's leading insurers and financial services providers.
Founded i n 1890 i n Berl i n, Al l i anz is now present i n m ore than 70 count ri es wi t h over
177,000 em pl o ye es . At the t op of t he i nt ernat i onal group is t he hol di ng com pan y, Al li anz AG,
wi t h i ts head offi ce in Muni ch.
Al l i anz Group provi des it s m ore than 60 mi l li on cust om ers worl dwi de wit h a com prehensi ve
ran ge of servi ces i n the areas of
P ropert y and casual t y i nsurance,
Li fe and heal t h insurance,
Asset m anagem ent and banki ng.
In fi scal yea r 2005, Al l i anz 's t ot al revenues am ount ed t o som e 100.9 bi l l i on euros. At t he end
of 2005 Al l i anz Group had m ore t han 1.26 t ri ll i on euros i n asset s under m anagem ent . Of t hi s,
743 bi l li on euros were asset s m anaged for t hi rd part i es.
CO RE CO MPE T E NCIE S AT B AJAJ AL L IANZ LIFE INS URANCE
Trust
C l ai ms Phi l osophy Cust omer Ori ent at i on
Experienced and Expert Servicing Team
S uperi or Technol o gy
Uni que Form s of Ri sk C over
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Chapter 2.
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Introduction of Topic
Introduction of Topic
From immemorial time, man has continuously assesses their capability with others. This urge to do better
has resulted in his continuously evolution which is vital for the growth of any business. Performance Appraisal
(PA) is one such tool to measure the performance of an employee. Employee performance appraisal is an effective
way to determine the performance of the employees in an organization. Performance Appraisal (PA) is mainly used
to determine the wage increase, promotions, transfer and layoffs, termination of services & the training and
development to the employees in an organization. It serves as a tool to determine the future of the organization and
visualize the career growth of the employees.
Performance Appraisal (PA) is normally done by senior executives and the senior manager in the
organization to appraise the employee for their performance and also to find out difficulties while meeting their
goals. During this period of carrying out the process the appraiser faces the problem in rating the
subordinate/employee/peer and sometime they may rate their subordinate wrongly, which will block the whole
purpose of the appraisal system.
From user testing, the traditional appraisal system found to be efficient in the issues like: it help to evaluate
the true abilities of employees, help employees to understand organizational goals, and to provide fast and effective
feedback. The users found the system easy to understand and use and were more satisfied with the overall
effectiveness of the system.
The main focus of the study of this is to identify the areas in Performance Appraisal System that would help in the
organizational development. Every organization has made it mandatory to have this appraisal done once in a year to
measure their employee performance. Hence, there should be well-defined appraisal procedure which is properly
used to evaluate employees performance. This study report aims at covering all aspects related to performance.
In order to make this report comprehensive, sample appraisals are also provided. This study was conducted at bajaj
allianz life insurance co. ltd, new delhi
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The objective of the questionnaire was to obtain employees opinion on performance appraisal (PA) system in
their organisation.
The Structural questionnaire prepared for HR survey comprised of two parts:
First part regards the demographic of the respondents, asking their name, designation,
qualifications and department in the company (Vice President, Senior HR consultants, Business
Development Executive), their tenure with the organisation and total experience.
The demographic characteristics of the respondent group were as follows. There is Vice President who
has experience of work since 15 years in the organisation, Senior HR consultants who work experience of
1-5 years experience, Business development executive who work experience of 0-1 years.
Second part of the questionnaire consisted of quantitative and qualitative statements. In order to
identify importance of the factors in determining.
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Chapter 5
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Scope & Objective
OBJECTIVES OF THE PROJECT
The basic objectives of this project is:
To find out present performance appraisal system used in the

company.
To find about the employees views for the system adopted by the
company to appraise their performance.
To know about the working scheme of the company.
To suggest some measures for improving the methods to appraise

the performance of the workers.
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Chapter 3.
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Literature Review
Perf or man c e Ap p rai sal
What is Performance Appraisal?

Performance appraisal is a systematic and objective way of judging the relative worth or ability of an
employee in performing the task. Performance appraisal helps to identify those who are
performing their assigned tasks and those who are not and the reasons for such
performance.
Modern Appraisal:-
Performance appraisal may be defined as a structured formal interaction between a subordinate and supervision ,
that usually takes the form of a periodic interview (annual or semi annual), in which the work performance of the
subordinate is examined and discussed with a view to identifying weakness and strengths as well as opportunities
for improvement and skills development.
In many organizations but not all appraisal results are used, either directly or indirectly, to help determine reward
outcomes. That is the appraisal results are used to identify the better performing employees who should get the
majority of available merit pay increases, bonuses and promotions.
By the same token , appraisal results are used to identify the poorer perform- ers who may require some form of
counseling , or in extreme cases ,demotion, dismissal or decreases in pay . (Organizations need to be aware of laws
in their country that might restrict their capacity dismiss employees or decrease pay).Whether this is an appropriate
use of performance appraisal the assignment and justification of rewards and penalties is very uncertain and
contentious matter.
Performance appraisal is used for :-
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1.
Identifying employees for salary increases , promotion , transfer and layoff or termination of
services.
2.
Determining training need for further improvement in performance.
3.
Motivating employees by indicating their performance levels.
4.
Establishing a basis for research and reference for personnel decisions in future.
Goals of the Performance Appraisal System :-
For supervisors, the process of performance management is one of the most important leadership
responsibilities. The performance appraisal syatem has three primary goals:-
1.
To provide a formal means of constructive, open and honest communication between the employees
and his/her supervisor.
2.
To enhance employee development through performance feedback and through the identification of
future professional development activities.
3.
To measure and document job performance as a basis for making promotion, compensation and
other personnel management decision.
Who Should Conduct the Appraisal?
The individual (superviser) who has the authority to make hiring recommendations and to assign work to the
employee should be the person responsible for completing the appraisal. Supervsors who donot directly observe or
otherwise measure the outcomes of a given employees job performance should seek input from individuals who
do directly observe the employee (eg.A crew leader, group leader, area co-ordinator, and other workers). This may
be the case, especially in larger departments/units. Its the responsibility of department/unit heads and supervisors to
prepare written performance appraisal and to conduct timely appraisal meetings. If a given supervisor should delay
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or neglect to conduct an appraisal, the affected employee is encouraged to initiate such or may contact the
Department of Human resources for assistance.
The Performance Appraisal Process
The figure outlines the performance appraisal process. Each step in the process is crucial and is arranged logically.
Performance Standard and

Goals
Performance standards and goals are the basis from which employee performance is measured. The written
performance appraisal should reflect how well the employee performed against defined job responsibilities and
previously established goals and objectives. Effective goals and objectives must be specified, measurable and
reasonable and have a time frame.
Specific: - Objective and precise language is essential when developing performance goals and
objectives. Supervisors should use terms and descriptions, which have the same meaning to the
supervisor and the employee. Detailed points rather tan vague descriptions are important for
understanding and documentation.
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Measurable: - Goals and objectives should be written so that accomplishment
or degrees
of
accomplishment can be objectively measured.
Reasonable: - Goals and objectives which are too high or rigid may actually inhibited an employee`s
performance. Individuals may become discouraged and give up if perceive expectations to be
unattainable. Goals and objectives should be reasonable given time frames, circumstances and
departmental/unit expectations.
Time frame: - A specific period of time for accomplishment should be identified with each goals and
objectives.
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METHODS OF PERFORMANCE APPRAISAL:-
Terms used to describe the various type of rating systems as well as a definition or performance appraisal is as
follows:
Behavioral Anchored Rating Scales :- The terms used to decribe a
performance rating that
focused on specific behaviors or sets as indicators of effective or ineffective performance , rather than
on broadly stated adjectives such as average, above average, or below average. Other variations were
:
1.
Behavioral observations scale.
2.
Behavioral expectations scale.
3.
Numerically anchored ating scales.
Checklists:- The term used to define a set of adjectives or descriptive statements. If the rather believed
the emplotee possessed a trait listed, the rather checked the item , if not the ather left the item blank,
rating score from the checklist equaled the number of checks.
Critical Incident Technique :- The term used to describe a method of performance appraisal that
made list of statements of very effective and very ineffective behavior foremploye. The lists have been
combined into categories , which vary with job .Once the categories had been developed and statements
of effective and ineffective behavior had been provided ,the evaluator prepared a log for
each
employee. Doring the evaluation period , the evaluator reco- rded examples of critical behaviors in each
of the categories and the log has been used to evaluate the employee at the end of the evaluation
period.
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Forced Choice Method: - This appraisal method has been developed to prevent evaluators from rating
employees to high. Using this method, the evaluator has to select from a set of descriptive statements that
apply to the employee. The statements have been weighted and summed to at, effectiveness index.
Forced Distribution:- The term used to describe an appraisal system similar to grading on a curve. The
evaluator had been asked to rate employees in some fixed distribution of categories. One way to do this
has been to type the name of each employee on a card and ask the evaluators so sort the cards into piles
corresponding to rating.
Graphic Rating Scale:- The term used to define
the oldest and most widely used performance
appraisal method. The evaluators are given a graph and asked to rate the employees on each of the
characteristics can vary one to one hundred. The rating can be a matrix of boxes for the evaluator to
check off or a bar graph wh-ere the evaluator checked off a loca- tion relative to the evaluators rating.
Narrative or Essay Evaluation:- This appraisal method asked the evaluator to describe strengths and
weakness of an emplyee`s behavior. Some companies still use this method exclu- sively , whereas in
others , the method has been combined with the graphic rating scale.
Management by Objective:- The management by objectives performance appraisal method has the
supervisor and employee get together to set objectives in quantifilable terms.
Paired Comparison :- The term used to describe an appraisal method for taking employee. First the
names of the employees to be evaluated have been placed on separated sheets in a predetermined
order , so that each person has been compared with all other employees to be evaluated. The evaluator
then checks
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the person he or she felt had been the better of the two on the criterion for each
comparison. Typically the criterion has been the employees over all ability to do the present job. The
number of tines a person has been preferred is tallied and the tally developed is index of the number
being evaluated.
Ranking :- The term ranking has been used to describe an altern- ative method of performance
appraisal where the supervisor has been asked to order his or her employees in terms of performance
from highest to lowest.
Weighted Checklist :- The term used to describe a performance appraisal method where supervisors
or personnel specialists fam- iliar with the jobs being evaluated prepared a large list of descrip-
tive
statements about effective and ineffective behavior on jobs.
Purpose of Traditional Performance Appraisal

Performance appraisal for evaluation using the traditional approach has served the following purposes:-
Promotion , separation and transfer decision.

Feedback to the employee regarding how the organization viewed the employee`s performance.
Evaluations of relative contributions made by individuals and entire departments in achieving higher level
organization goals.
Criteria for evaluating the effectiveness of selection and placement

decisions including the relevance information used n the decision with in the organization.
Reward decisions , including merit increases , promotions and other rewards.
Ascertaining and diagnosing training and development decisions
Criteria for evaluating the success of training and development decisions.
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Information upon which work scheduling plans, budgeting and human resources planning can be used.
Two serious flaws in the traditional approach in the performance appraisal exist. The flaws are:
Organizational performance appraisal is typically primarily concerned with the past rather than being forward
looking through the use of setting objectives or goals.
Performance appraisal is usually tied to the employees` salary reviewed. Dealing with salary generally
overwhelmed and block creative, meaningful or comprehensive consideration of performance goals.
Developmental Performance Approach Purposes
The developmental approach to performance appraisal has been related to employees as individuals. This approach
has been concerned with the use of performance appraisal as a contributor to employee motivation, development and
human resources planning. The development approach
contained all of the traditional overall organizational
performance appraisal purposes and the following additional purposes:
Provided employees the opportunity to formally indicate the direction and level of the employee`s
ambition.
Show organizational interest it employee development ,which was cited to help the enterprise retain
ambitious , capable employees instead of losing the employees to competitors.
Provided a structure for communications between employees and management to help clarify
expectations of the employee by management and the employee.
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Provide satisfaction and encouragement to the employee who has been trying to perform well.
Expectation from a Manager doing a Performance Appraisal

The following is typically expected from company manager when doing performance appraisal:
Translate organizational goals into individual job objective.
Communicate management`s expectations regarding employee performance.
Provide feedback to employee about job performance in light of management`s objectives.
Coach the employee on how to achieve job objectives/requirements.
Diagnose the employee`s strengths and weaknesses.
Determine what kind of development activities might help the employee better utilize his or her skills
improve performance on the current job.
Problem of criterion
A brand definition of criterion is that which is to be predicated. This definition refers to the evaluative standards,
which measures are easy if the job is clearly defined but difficult if it is broad. At lower level of an organization
there are specific jobs and certain tangible and objective standards of performance can be identified. Further up in
the hierarchy, jobs become more complex and clear-cut, tangible standards of performance are difficult to specify.
Irrespective of the level by and large most companies use eleven performance measures:
1.
Quantity of work
2.
Quality of work
3.
Waste and brokerage
4.
Money earned
5.
Job knowledge
6.
Job tenure
7.
Absenteeism
8.
Rate of advancement
9.
Self judgment
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10. Judgment by peers

11. Judgment by supervisors.
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Instructions for using performance appraisal system
Purpose:
The performance evaluation system is used to evaluate employees past work performance, develop a work plan for
the next review period and determine what resources are needed for improving performance to become more
effective. Evaluations also develop employees potential through training and counseling. The process is designed to
be interactive between the employee and the superv-isor with the following objectives in mind:
Use to recognize and reward employees for positive work behavior. Use the results as a basis for
appropriate personnel actions.
Encourage employees to continuously improve, support team endeavors, develop professionally and
perform at their maximum potential.
Communicate and clarify the goals and objectives of the division, department and the City in relation
to the employees` work expectation
Involve employees in improving their effectiveness and performance.
Provide an employee improvement plan where performance is rated below standard.
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Performance Evaluation System :
The performance evaluation form is used for all performance reviews. This includes probationary evaluations
( expect Police and Fire have their own process), annual evaluation and special evaluation for reg -ular full time and
regular part time employees. The evaluation periods are generally twelve months, expect for special evaluations,
which may be for shorter periods of time. Merit step increases are conducted on the employees` anniversary date
(assuming satisfactory performance) and not during the annual performance review.
Supervisor Responsibility :
Each department will conduct employee evaluations for all employees in the department during the same month.
Human resources will notify department heads 30 days prior to when evaluations are due. Each supervisor
completing the performance evaluation should review the following instructions, the rating criteria definitions and
familiarize him or herself with the procedure prior to competing the evaluations. Upon completion of the evaluation
form by the supervisor (rater) and the reviewer (one level above the rater), then the rater will meet with the
completed form for signatures. Supervisors should provide written comments on the evaluation form for each
performance criteria and list specific examples. Use N/A if the rating criteria are not applicable. The supervisor is
responsible for completing the evaluation process at the beginning of the rating period and again at 6 month to
monitor progress and adjust time lines if necessary. At that time, a new 12-month work plan is established with the
employee and the process repeats itself. Supervisors shall coordinate the discussion of performance evaluations with
employees in a
manner that allows privacy. The supervisor shall have the employee to complete the Self
Performance Evaluation Form as a discussion tool.
Forms:
There are two performance evaluation forms which you will always use:
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The actual performance evaluation form which includes the cover page called the Summary
Worksheet.
The Employee Self-Evaluation form.
There are two other forms you may need to use:
The Performance Improvement Plan form (used when a rating is #1 Unacceptable or #2

Improvement needed), and attached to Performance Evaluation form.
Performance Goals form (used by department to follow up mid-year on goals set in evaluation),
optional and not returned to Human Resources.
Rating Process And Criteria :
5 = outstanding performance
4 = exceed expectations
3 = meet expectations
2 = needs improvement
1 = unacceptable
A rating of 1 or 2 requires the supervisor to complete a Performance Improvement Plan form to document the
problem, including specific examples, guidance on improvement, a specific timetable for improvement, and a follow
up evaluation to monitor progress.
Signature On The Evaluation Form
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After the supervisor completes the performance evaluation with the employee, both the supervisor and
employee sign the form. The next level of review is the Reviewer, one level above the supervisor
performing the evaluation (the rater). Depending on the Department structure, the reviewer could be the
Department head, Deputy Director, or a Division Manager. The mid-year review will only involve the
employee and his/her supervisor with their signatures and the mid-year process does not go into the
personnel file.
Evaluation When A New Supervisor is Appointed :
If the employee has an evaluation due and supervisor is appointed, the new supervisor likely has not had
the opportunity to properly evaluate the employee`s performance. In this instant the new supervisor will
evaluate the employee after 90 days. If possible, the supervisor that is leaving will do a close out evaluation
for his/her employees prior to leaving.
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Steps to complete the annual performance evaluation procedure:
Step 1: Notice to department heads: human resources will notify department heads 30 days prior to when
performance evaluations are due for full time and part time regular employees in their department.
Managers/supervisors have 30 days to complete the performance evaluations, obtain signature and provide the
original the human resources office for filling in the employees personnel file .The supervisor shall also retain a
computer copy/file copy for the midyear review process. Human resources will remind supervisors to schedule
probationary evaluations on their calendar.
Step 2: Blank performance evaluation forms: managers/supervisors obtain the performance evaluation forms.
Step3: Review job description; review the employees job description to see if any changes are necessary. If there
are increased responsibilities /scope of work or a change in qualifications forward your edits to human resources for
review. Minor differences in workload or added assignment that are industry or technology changes do not require a
change to the job description. (Individual employees do not amend their job descriptions; this task is for the
manager)
Step 4: Self evaluation form: provide a copy of the self evaluation form to the employee.
If the employee does not want to complete the form, he/she shall check the box and sign at the bottom of the form
and return it to the supervisors . This completed form is used as a tool for discussion while the supervisors is
completing the employees evaluation .
Step 5: Complete the performance evaluation rating forms: The managers /supervisors complete each section in
performance evaluation forms (page 2-3plus). If a section does not apply note N/A for not applicable. Written
comments are required and should include examples that support the rating the specific job element. Section 1to
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3(Technical knowlwdge, customer service and quality/quantity of work) apply to all positions. For section
4(Attendance), the supervisors should review the employees attendance record, scheduled time away from the job
and use of breaks. Section5 (Safety and Risk management) applies to all jobs and should include notice of any
accident, injuries, equipments usage or other safety related issues. Section6 is only for department heads, managers,
supervisors and lead workers. Next, complete the section work plan for the next rating period completion date. This
list achievable goals and projects as well as areas to improve upon. Next, complete the training and development
section. The raters the complete the summary worksheet cover pages for the evaluation form. This is done last and is
and over all rating considering all the rating sectors.
The performance goal forms(optional based on department head discussion is a departmental tool used during the
midyear review o monitor progress, completion date or makes comments concerning the goals. keep goals to a
realistic number (3 to 5) and ones that are achievable we all have a tendency to put down more goals that we can
reasonably achieve.
Also some employees in entry level job may have only 1 or 2 goals or a training course to complete during the
review period the supervisor should used their judgment and discussion their employees to arrive at goals for the
work
Plan .
Step 6: Unacceptable or Improvement Needed Rating: If y rate an employee with a 1 Unacceptable or 2

Improvement needed, you must complete the performance improvement plan form. Have this completed form
reviewed by the department head and Human Resources prior to presenting it to the employee. This form is used to
document performance and behavior problems that need corrective action. Documentation is critical for this type of
rating.
Note in the event the employee does not improve, the documentation is important for corrective action. The notice
of Improvement Needed or unacceptable rating must include:
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The problem areas of performance that are determined to be unacceptable.
Identify performance standards that must be achieved to meet acceptable standards.
Provide a reasonable period of time demonstrate improved performance.
Provide assistance to help them achieve the performance standards (training, counseling and coaching, closer
supervision, feedback).
Communicate with employee of the consequences if their performance does not improve and provide a
deadline, such as 30-90 days for a follow up review. However, this time line does not preclude immediate
disciplinary action at any time by department head if the employees` performance worsens during the rating
period.
A rating of #1 shall be reviewed and approved by the department head before being communicated to the
employee.
Step 7: Mid-year Review: Mid-point through the 12-month rating period, the manager or supervisor will meet with
the employee to review his/her progress. This does not require any new information to be prepared, merely review
their performance, goals and deadlines with the employee. At this step, you may adjust the deadlines as necessary.
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Standard of Performance
Standards of performance are written statement describing how well a job should be performed. Performance
standards are developed collaboratively with employees, whenever possible and explained to new employees during
the first month on the job.
Job Description & Essential Functions

Strategic Plan & Annual Goals
Standards of Performance
Observation & Feedback
Performance Appraisal
Performance Development
The performance standard provides a benchmark against which to evaluate work performance. While the job
description describes the essential functions and the tasks to be done, the performance standard defines how well
each function or task must be performed in order to meet or exceed expectations. The University also establishes
general criteria for evaluating work performance.
Standards of performance are usually:
Developed in collaboration with the employees who do the tasks or functions.
Explained to new employees within the first month on the job.
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The rating describes the level of performance of the individual employee compared to a job description and standard
of performance.
E =Exceptional : Performance well exceeds expectations and is consistently outstanding.

A = Above Expectation: Performance is consistently beyond expectations.
S = Solid Performance: Performance consistently fulfills expectations and at times exceeds them.
I = Improvement Needed: Performance does not consistently meet expectation.
U = Unsatisfactory: Performance is consistently below expectations. Deficiencies should be addressed as noted in
the performance appraisal.
As performance manager, you will use these criteria to rate the employees` performance. At the beginning of the
appraisal period, review these ratings and the performance standards for each position, which reports to you so that
you can fairly evaluate the employees` performance.
Performance Standards a answer the question, How will the employees and the performance manager
know when the employee is meeting or exceeding expectation for his or her position?
Guidelines for Performance Standards
Keep in mind the following guidelines when writing your performance standards:
Performance standards should be related to the employees` assigned work and job requirements.
Your reporting system should be adequate to measure and report any quantitative data you list.
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Quantifiable measures may not apply to all functions. Describe in clear and specific terms the
characteristics of performance quality that are verifiable and that would meet or exceed expectations.
Accomplishment of organizational objectives should be included where appropriate, such as cost-control,

improved efficiency, productivity, project completion, process redesign or public service.
Checking Your Standards
After you have written your performance standards, check them against the questions in the following list:
Are the standards realistic? Standards should be attainable and consistent with what is necessary to get the
job done. Standards for performance, which meets expectations, represent the minimum acceptable level of
performance for all employees in that position.
Are standards specific? Standards should tell an employee exactly which specific action and results he or
she is expected to accomplish.
Are the standards based on measurable data, observation, or verifiable information? Performance can be
measured in terms of timeliness, cost, quality and quantity.
Are the standards consistent with organizational goals? Standards link individual (and team) performance
to organizational goals and should be consistent with these goals.
Are the standards challenging? Standards may describe performance that exceeds expectations.
Recognizing performance that is above expectation or outstanding is crucial to motivating employee.
Are the standards clear and understandable? The employees whose work is to be evaluated on the basis of
the standards should understand them. Standards should use the language of the job.
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Are the standards dynamic? As organizational goals, technologies, operations or experiences change,
standards should evolve.
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Use of Books and Software for Performance Appraisals
There are number of low cost paperbacks that can b handed out to the managerial staff to help them with their
appraisals.
Since the advent o the use of computers, a number of educational organizations are now using Performance
Appraisal software.
Performance now Enterprise is a software tool for logging events, tracking goals, providing effective feedback and
writing employee reviews that maximize the potential of your team. Flexible enough to adapt to your present review
system,
Performance now helps you become a better manager and get the best from your employees. For a little more
upscale package Performance Impact Workplace is easy to use to set goals for employees, but are having trouble
following up on those goals.
Other software such as The Administrative Observer for school systems is one of the more configurable stand-alone
database package, with an intuitive graphic interface, geared towards the business environment is MINDSOLVE
(MVP). MVP is designed as an enterprise level performance management software, incorporating appraisal,
development resources, 360 degree feedback, performance logging, etc. While the use of configurable software
based tools are certainty making life easier, the use of such tools are much more valuable.
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Chapter 4.
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Introduction of Insurance
INTRODUCTION
The Insurance sector in India governed by Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and
General Insurance Business (Nationalisation) Act, 1972, Insurance Regulatory and Development Authority (IRDA)
Act, 1999 and other related Acts. With such a large population and the untapped market area of this population
Insurance happens to be a very big opportunity in India. Today it stands as a business growing at the rate of 15-20
per cent annually. Together with banking services, it adds about 7 per cent to the countrys GDP .In spite of all this
growth the statistics of the penetration of the insurance in the country is very poor. Nearly 80% of Indian
populations are without Life insurance cover and the Health insurance. This is an indicator that growth potential for
the insurance sector is immense in India. It was due to this immense growth that the regulations were introduced in
the insurance sector and in continuation Malhotra Committee was constituted by the government in 1993 to
examine the various aspects of the industry. The key element of the reform process was Participation of overseas
insurance companies with 26% capital. Creating a more efficient and competitive financial system suitable for the
requirements of the economy was the main idea behind this reform.
Since then the insurance industry has gone through many sea changes .The competition LIC started facing from
these companies were threatening to the existence of LIC .since the liberalization of the industry the insurance
industry has never looked back and today stand as the one of the most competitive and exploring industry in India.
The entry of the private players and the increased use of the new distribution are in the limelight today. The use of
new distribution techniques and the IT tools has increased the scope of the industry in the longer run.
35 | P a g e
HISTORY OF INSURANCE SECTOR

The business of life insurance in India in its existing form started in India in the year 1818 with the establishment of
the Oriental Life Insurance Company in Calcutta. Some of the important milestones in the life insurance business
in India are given in the table 1.
Table 1: milestones in the life insurance business in India
Year
Milestones in the life insurance business in India
1912
The Indian Life Assurance Companies Act enacted as the first statute to regulate the life
1928
insurance business
The Indian Insurance Companies Act enacted to enable the government to collect statistical
1938
information about both life and non-life insurance businesses

Earlier legislation consolidated and amended to by the Insurance Act with the objective of
1956
protecting the interests of the insuring public.

245 Indian and foreign insurers and provident societies taken over by the central
government and nationalised. LIC formed by an Act of Parliament, viz. LIC Act, 1956,
with a capital contribution of Rs. 5 crore from the Government of India.
The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd.,
the first general insurance company established in the year 1850 in Calcutta by the British. Some of the important
milestones in the general insurance business in India are given in the table 2.
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Table 2: milestones in the general insurance business in India

Year
Milestones in the general insurance business in India
1907
The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of
1957
general insurance business

General Insurance Council, a wing of the Insurance Association of India, frames a code of
1968
conduct for ensuring fair conduct and sound business practices

The Insurance Act amended to regulate investments and set minimum solvency margins
1972
and the Tariff Advisory Committee set up.

The General Insurance Business (Nationalisation) Act, 1972 nationalised the general
insurance business in India with effect from 1st January 1973.
107 insurers amalgamated and grouped into four companies viz. the National Insurance
Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company
Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company.
Indian Insurance Market History
Insurance has a long history in India. Life Insurance in its current form was introduced in 1818 when Oriental Life
Insurance Company began its operations in India. General Insurance was however a comparatively late entrant in
1850 when Triton Insurance company set up its base in Kolkata. History of Insurance in India can be broadly
bifurcated into three eras: a) Pre Nationalisation b) Nationalisation and c) Post Nationalisation. Life Insurance was
the first to be nationalized in 1956. Life Insurance Corporation of India was formed by consolidating the operations
of various insurance companies. General Insurance followed suit and was nationalized in 1973. General Insurance
Corporation of India was set up as the controlling body with New India, United India, National and Oriental as its
subsidiaries. The process of opening up the insurance sector was initiated against the background of Economic
Reform process which commenced from 1991. For this purpose Malhotra Committee was formed during this year
who submitted their report in 1994 and Insurance Regulatory Development Act (IRDA) was passed in 1999.
Resultantly Indian Insurance was opened for private companies and Private Insurance Company effectively started
operations from 2001.
Insurance Market- Present:
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The insurance sector was opened up for private participation four years ago. For years now, the private players are
active in the liberalized environment. The insurance market have witnessed dynamic changes which includes
presence of a fairly large number of insurers both life and non-life segment. Most of the private insurance companies
have formed joint venture partnering well recognized foreign players across the globe.
There are now 29 insurance companies operating in the Indian market 14 private life insurers, nine private non-life
insurers and six public sector companies. With many more joint ventures in the offing, the insurance industry
in India today stands at a crossroads as competition intensifies and companies prepare survival strategies in a
detariffed scenario.
There is pressure from both within the country and outside on the Government to increase the foreign direct
investment (FDI) limit from the current 26% to 49%, which would help JV partners to bring in funds for expansion.
There are opportunities in the pensions sector where regulations are being framed. Less than 10 % of Indians above
the age of 60 receive pensions. The IRDA has issued the first licence for a standalone health company in the country
as many more players wait to enter. The health insurance sector has tremendous growth potential, and as it matures
and new players enter, product innovation and enhancement will increase. The deepening of the health database over
time will also allow players to develop and price products for larger segments of society.
State Insurers Continue To Dominate There may be room for many more players in a large underinsured market
like India with a population of over one billion. But the reality is that the intense competition in the last five years
has made it difficult for new entrants to keep pace with the leaders and thereby failing to make any impact in the
market.
Also as the private sector controls over 26.18% of the life insurance market and over 26.53% of the non-life market,
the public sector companies still call the shots.
The countrys largest life insurer, Life Insurance Corporation of India (LIC), had a share of 74.82% in new business
premium income in November 2005.
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Similarly, the four public-sector non-life insurers New India Assurance, National Insurance, Oriental Insurance
and United India Insurance had a combined market share of 73.47% as of October 2005. ICICI Prudential Life
Insurance Company continues to lead the private sector with a 7.26% market share in terms of fresh premium,
whereas ICICI Lombard General Insurance Company is the leader among the private non-life players with a 8.11%
market share. ICICI Lombard has focused on growing the market for general insurance products and increasing
penetration within existing customers through product innovation and distribution.
Reaching Out To Customers No doubt, the customer profile in the insurance industry is changing with the
introduction of large number of divergent intermediaries such as brokers, corporate agents, and bancassurance.
The industry now deals with customers who know what they want and when, and are more demanding in terms of
better service and speedier responses. With the industry all set to move to a detariffed regime by 2007, there will be
considerable improvement in customer service levels, product innovation and newer standards of underwriting.
Intense Competition In a de-tariffed environment, competition will manifest itself in prices, products, underwriting
criteria, innovative sales methods and creditworthiness. Insurance companies will vie with each other to capture
market share through better pricing and client segmentation.
The battle has so far been fought in the big urban cities, but in the next few years, increased competition will drive
insurers to rural and semi-urban markets.
Global Standards While the world is eyeing India for growth and expansion, Indian companies are becoming
increasingly world class. Take the case of LIC, which has set its sight on becoming a major global player following a
Rs280-crore investment from the Indian government. The company now operates in Mauritius, Fiji, the UK, Sri
Lanka, Nepal and will soon start operations in Saudi Arabia. It also plans to venture into the African and AsiaPacific regions in 2006.
The year 2005 was a testing phase for the general insurance industry with a series of catastrophes hitting the Indian
sub-continent.
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However, with robust reinsurance programmes in place, insurers have successfully managed to tide over the crisis
without any adverse impact on their balance sheets.
With life insurance premiums being just 2.5% of GDP and general insurance premiums being 0.65% of GDP, the
opportunities in the Indian market place is immense. The next five years will be challenging but those that can build
scale and market share will survive and prosper.
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Chapter 6.
Research Methodology
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a) Statement of the Problem

Every business organization large or small spend huge amount of money on Human Resource. It is necessary
therefore to find out how they are performing in order to design their future of the organization. It may be to develop
the employees or to correct the employees or to utilize employees strength.
This study is directed towards probing Performance Appraisal system as tool for employees at BAJAJ ALLIANZ
LIFE INSURANCE.
b) Types of ResearchThere is social research in a HR Survey with particular reference to Performance Appraisal as a System for
employees at BAJAJ ALLIANZ LIFE INSURANCE
Sample Design:
It is random sampling techniques where the samples were designed based on the nature of work,
qualification, experience, etc.
Sample Size:
20 Employees Respondents
Tool for collection of Data:

Structured questionnaire is used to collect the data. Copy of questionnaire is placed at the Annexure of the
project report.
Method of Collecting Data:

The questionnaires were floated to respondents through Researcher where the data was collected and
returned by HR Unit.
Method of Analysis:
1.
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The collected data were tabulated
2.
Percentage of respond was worked out
3.
Analysis is based on percentage frequency
4.
Weight age is given to high percentage in response factor
5.
Evaluation is made based on the analysis and the presumptions inherences are used, where every
data is ambiguous. Definitive evaluation is made every data is clear.
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Chapter 7.
Data Analysis
&
Interpretation
44 | P a g e
Findings, Analysis and Discussion-
Present Appraisal System Feedback

In this system, employees and managers set expectations and prepare plans for work and development at the
beginning of the year. The key responsibilities and results (KRRs) dimensions and behavioral expectations, and the
criteria/standards for the performance measurement are prescribed and clarified. Although they may be expressed
differently for different jobs, the basic areas of measurement for all jobs are quality, quantity, cost and timeliness. To
ensure that all employees receive feedback for maintaining or improving productivity, two documented semi-annual
feedback sessions are required. The supervisor uses discretion to schedule informal feedback based on individual
employees needs.
Although a case study with a limited number of respondents cannot be widely generalized, the results should be
quite interesting to mangers who would like to think critically and seek ways to improve performance appraisal
systems in organizations
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Part A: Personal Data

1.
To carry out any Project Study personal data needs detailed analysis because it is basic foundation to
understand correct profile of respondent. This shows their knowledge, mental status and maturity.
Educational background to understand the topic of the study so that they can be related age.
Age Group
21-30
31-40
41-50
Total
No. of Respondents
14
2
4
20
Percentage
70
10
20
100
From the above data indicates that 70% of respondents are of 21-30 age group, 10% of respondents are of 31-40 age
group and 20% of respondents are of 41-50 age group.
Gender-
Gender
Male
Female
Total
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No. of Respondents
12
8
20
Percentage
60
40
100
The above data indicates that 60% of respondents are male, rest 40% of respondents are female.
QualificationQualification
Diploma
Graduate
Post Graduate
Total
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No. of Respondents
2
6
12
20
Percentage
10
30
60
100
In the above data, it is seen that 10% of respondents are diploma in qualifications, 30% of respondents are graduates
and rest 60% of respondents are post graduate.
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DesignationDesignation
Manager
Officer
Junior Officer
VP
Total
No. of Respondents
4
10
4
2
20
Percentage
20
50
20
10
100
From the above data, it is seen that 20% of respondents are Managerial post, 50% of respondents are at officer post,
20% of respondents are junior officer and 10% of respondents are VP in post.
Part B: Research Data

1.
Is the Performance Appraisal process user friendly?

a. Yes
S.No.
1
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Options
Yes
b. No
No. of Respondents
16
Percentage
80
2
Total
No
4
20
20
100
Respondents and Responses80% of the respondents are agreed to the above statement
It is user-friendly and easily accessible within the organization. It also provides a consolidated view.
It captures an individuals strengths, improvement areas and also captures training courses recommended.
It gives an opportunity to the employee to accept or decline.
It is very flexible.
20% of the respondents are disagreed to the statement
It is a very easier tool, where employee can fill in short time.
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As an employee need to know what is required of them in order to

work effectively by this.
2.
Is Performance Appraisal conducted on time?

a. Yes
S.No.
1
2
Total
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Options
Yes
No
b. No
No. of Respondents
12
8
20
Percentage
60
40
100
Respondents & Responses60% of the respondents agreed to the above statement
Performance Appraisal process will start on time.
There is a fixed schedule to meet listed in detail at the beginning of the process.
Process will be conducted as per the appraisal period.
40% of the respondents disagreed to the statement
Process end will take long time and unintentionally however measuring quality
issues do cause delays.
Process Cycle should be reduced because there is always delay due to the respective owners of the
employee.
The steps involved in the process are very long as a result.
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3.
Does Performance Appraisal process assess fairly?

a. Yes
S.No.
1
2
Total
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Options
Yes
No
b. No
No. of Respondents
16
4
20
Percentage
80
20
100
Respondents & Responses80% of the respondents agreed to above statement
The process assessment is fair and justified with business units.
It is objective process.
Measuring an individual is fair.
The metrics are adequate.
Across Business units does not yield right results.
There are some issues with performing employees not getting proper
result of the appraisal.
360 feedback systems should be there.
There is an element of subjectivity. The presence of Appraiser and

reviewer is aimed at eliminating the subjectivity.
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4.
Is Performance Appraisal process simple to understand?

a. Yes
S.No.
1
2
Total
Options
Yes
No
b. No
No. of Respondents
17
3
20
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Percentage
85
15
100
It is simple to understand and follow pre-process.
It clears to express as individual his strength and capacity.
It gives an opportunity to show case his achievement.
It helps to understand the required capacity to meet requirements.
10% of the respondents disagreed to the statements
A Performance Appraisal tool should be kept as simple as possible while meeting objectives.
A Performance Appraisal tools should be based on assessment of work quantity, quality, and
knowledge of job but not personality.
Process cycle time has to be reduced.
5.
Do you receive an orientation on how to conduct appraisal process?

a. Yes
S.No.
1
2
Total
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Options
Yes
No
b. No
No. of Respondents
12
8
20
Percentage
60
40
100
Detailed orientation is given to all levels at the beginning of the process.
Various training programs are available and discussed with superiors.
Sometimes process will be failed due to some internal problems after getting orientated on the
Performance Appraisal system.
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6.
How much time is spent in preparing for feedback session?

a- 1 hour.
S.No.
1
2
Total
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Options
1 hour
2 hour
b- 2 hour
No. of Respondents
8
12
20
Percentage
40
60
100
Respondents and Responses40% of the respondents agreed to 1 hour statement
More time will be spent if one employee worked under different managers for different assignments.
It is necessary to know the earlier managers feedback on the employee to assess properly.
In the Performance Appraisal system no records/data are available of confirmation appraisal and
project end appraisal.
60% of the respondents agreed to 2 hours statement
Approximately 2 hours, 1 hour for collecting feedback and brainstorming and 1 hour for filling
Review.
1 hour need to have things documented on how an employee has been appraised.
There different process and have their strengths or improvement plans throughout the year.
Feedback session involved revision of individuals accomplishments during the appraisal period.
His/her strengths, improvement areas and training & development.
7.
In your opinion how is overall Performance Appraisal system in

BAJAJ ALLIANZ LIFE INSURANCE?
a. Excellent
S.No.
1
2
3
4
Total
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Options
Excellent
Good
Average
Poor
b- Good
c- Average
No. of Respondents
10
6
4
20
d- Poor
Percentage
50
30
20
100
The above data predicts that the present appraisal system status in the company where 50% of the employees
responded to be excellent, 30% respondent to be good, and 20% responded as average i.e. just satisfied.
Thus the majority of respondents have viewed their opinion that the present appraisal system is good.
8.
a) Are you satisfied with the current Appraisal system?

a. Yes
S.No.
1
2
Total
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Options
Yes
No
b. No
No. of Respondents
14
6
20
Percentage
70
30
100
Respondents and Responses70% of the respondents agreed to the above statement
It is simple to understand and follow pre process.
It is clear to express as individual his strength and capacity.
It helps us to understand the required capacity to meet requirements.
Suggested by some managers to have half yearly appraisal system.
Promotion, salary revisions can be dealt during annual appraisal.
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Half yearly appraisal will help in motivating, keeping employees known of peer strength and
improvement areas.
Confirmation appraisal and project end appraisal process needs to be automated.
In the process of performance appraisal cross business unit appraisal process should be smoothened.
Performance Appraisal should be subject to regular evaluation and review.
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8. b) If not then what are the areas need to be improved?

a. Time
S.No.
1
2
Total
Options
Time
Process
b. Process
No. of Respondents
7
13
20
Percentage
35
65
100
The above data predicts that 35% of the respondent need to change the duration of PA system and rest of the
13 respondents i.e. 65% need to change the process of performance appraisal.
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9.
Do you feel any difficulty in handling them?

a. Yes
S.No.
1
2
Total
Options
Yes
No
b. No
No. of Respondents
4
16
20
Percentage
20
80
100
The above data indicates that 80% of the respondents feels no difficulty while handling performance
appraisal system while the rest of the 20% of the respondent feels little difficulty.
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10. What other process can be included making the appraisal process much better?
a. MBO
b. Critical Incident method
c. Web based appraisal system
S.No.
Options
No. of Respondents
Percentage
MBO
40
Critical Incident Method
20
Web based appraisal
40
20
100
system
Total
The above data indicates that equal percentage of respondent need to add MBO as well as Web based
appraisal system in their organization i.e. 40% and the rest 20% of other needs to include Critical incident
Method.
Present Appraisal System Satisfaction LevelParticulars

Good
Satisfactory
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Respondents
12
6
Percentage
60
30
Poor
Total
2
20
10
100
The above data indicates the present appraisal system status in the company where 60% of the employees
responded to good, 30% responded to satisfactory i.e. just satisfied and the remaining 10% are not satisfied
and who have not responded as poor.
Thus, the majority of the respondents have viewed their opinion that the present appraisal system is good.
Efficiency of the present appraisal system in employee developmentParticulars

Yes
No
Total
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Respondents
16
4
20
Percentage
80
20
100
The above data shows that 80% respondents are accepting that Performance Appraisal has aimed at
development of the employee, and only 20% of them disagreed to the present system.
Hence, most of the respondents are agree that Performance Appraisal is aiming to the career development of
the employee.
Present Appraisal system in setting work targetsParticulars

Yes
No
Total
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Respondents
14
6
20
Percentage
70
30
100
The above data reveals that possibility of setting targets for the different jobs they do under different
department, 70% respondents have said yes for the job they do. 30% respondents have said no for the
qualitative and creative jobs they do.
Therefore, majority of respondents have agreed the possibility of setting work targets.
The target for the job they do even though every job needs certain degree of creativity which depends upon
the nature of job.
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Actions taken after Performance AppraisalParticulars

Useful discussions
No discussions
Only failure are discussed
Genius Feedback is given
Total
Respondents
11
4
2
3
20
Percentage
55
20
10
15
100
The above data shows actions taken after the Performance Appraisal by the appraiser the management 55%
respondents of them reported they take up useful discussions on the evaluation and results, 4 of them i.e. 20%
have denied and says no discussion, 10% said only failures are discussed, no discussion is made on
achievement, 15% agreed that they get genius feedback on evaluation.
Thus, majority of respondents told they are useful discussions with appraiser after performance appraisal.
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Availability of feedback in Performance Appraisal systemParticulars

Yes
No
Total
Respondents
17
3
20
Percentage
85
15
100
The above data distributes whether the present appraisal system is used in getting the feedback from the
employees, 85% respondents told the present appraisal system helps in giving the feedback from the
employees and only 15% respondents told the existing appraisal system is not helping in getting proper
feedback from the employees.
Therefore, majority of the respondents are accepting that the present appraisal system help in getting
feedback from the employees.
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Chapter 8.
List of Findings
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Key findings-
The following key findings are found while performing HR survey for identifying the impact of Performance
Appraisal (PA) system:
BAJAJ ALLIANZ LIFE INSURANCE follows two types of Appraisal process - Graphic Rating Scales and
Behaviorally Anchored Rating Scaling (BARS) which is user-friendly and easily accessible within the
organization.
Feedback is given to the employees about their performance.
Promotions schemes exist in the organization according to the employees performance.
It captures an individuals strengths, improvement areas & also captures training courses recommended.
Performance Appraisal process will start on time and process will be conducted as per the appraisal period.
There is a fixed schedule to meet listed in detail at beginning of the process.
The process assessment is fair and justified with business units.
It is objective process, measuring an individual is fair but the metrics are

inadequate.
Across business units does not yield right results.
There are some issues with performing employees not getting proper result of the appraisal.
Process is clear to express as an individual his strengths and capacity.
It helps to understand the required capacity to meet requirements.
A Performance Appraisal system tools should be based on assessment of work performance not personality.
A Performance Appraisal system tools should be kept as simple as possible while meeting objectives.
Detailed orientation will be given at all level at beginning of the performance

appraisal process.
Various training programs are available and discussed with superiors.
72 | P a g e
Sometimes process will be failed due to some internal problem after getting
orientated on the performance appraisal system.
Feedback session involved revisions of individuals accomplishments during the appraisal period. His/her
strengths, improvement areas and training and
development.
More time will be spent if one employee worked under different managers for assignments.
It is necessary to now the earlier managers feedback on the employee to assess properly.
In Performance Appraisal includes Quantitative and qualitative measures.
It will clarify organizational goals and expectations.
It provides a mechanism for improving communication between workers and
superiors.
It will decide upon future work requirements and objectives.
By this employee can discuss ideas, comments and suggestions.
Develop an action plan for indentifying strategies which will make it possible for the employees to achieve
the objective discussed.
Performance Appraisal should be developed and implemented in consultation with employees and
superiors.
Performance Appraisal should operate equitable throughout the organization.
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Promotions, salary revisions can be dealt during annual appraisal.
Group work and team work exist in an organization.
Majority of the executives give reasons for not completing their targets.
Review and reset of the task is not made uniformly.
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Chapter 9.
Conclusion
75 | P a g e
Conclusions-
Most of the time Performance Appraisal (PA) for determining compensation increases, training need identification
and for promotions. The Performance Appraisal has delinked itself from being an instrument of evaluating
performance in the organization. Application of performance and bringing about better performance management
practices that enables organization to improve their performance and bring in a performance driven culture is the
need of the hour rather performance appraisal only.
No Doubt without the commitment of the top management it would just be very difficult to bring this sort of change.
This in fact calls for a cultural change where in emphasis is not only given to the Outcome or the end result but also
on the process and effort made to achieve the result. While discussing of the process & effort we need to focus on
the leadership style, his approach of consulting others, his ability to learn, his approach as a team member, his effort
in planning his days and week, and his overall orientation for subordinates development. All this really calls for a
different ball games wherein the concerned supervisors are able to emphasize with his sub-ordinates and is really
above to understand his emotional world.
In this era where every individual is competing with each other and where very tight schedules are drawn without
much scope for slippages, there is every probability that conflicts are going to become a common affair. As such is
has become all the more important that a supervisor makes all out effort to understand emotional world of the subordinate in terms of his hindering and facilitating factors in terms of achieving his goals, what help the person
growth and his own ambition in the next 3-4 years, what is happening on his family front.
All this shall only happen if the sub-ordinate is able to see value and a genuine concern in all this. For this what can
be done is that once in a month an effort can be made by the supervisor to sit his sub-ordinate to sit with his subordinate and have a face to face interaction in a non threatening atmosphere. What I have personally observed that it
charges the motivation level of an individual considerably and in fact the employee makes all out effort to achieve
the Organizational goals.
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Chapter 10.
Recommendations
Limitations
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Recommendations
Though the employees feels that the company is fair in its appraisal process but still has lot to in terms of
making the appraisal process effective so that it results in enhanced employee satisfaction and helps in
retaining key employees of the company.
The project leaders are dissatisfied with the way responsibilities are distributed. The company needs to
works in this area and bring more clarity in the definitions of roles and responsibilities.
The Management should design training and development programs, career plans for their employees on
the basis of skills, knowledge needs.
Appreciate employees on the basis of employees work performance by Promotion or increment in the
salaries.
The performance culture of the company is another area where needs to be done to improve the training
regimen so that involvement of the employees is enhanced which finally would build the morale and
productivity would be enhanced.
Employees have doubts about the rewards and feel that the system is not too transparent. This in the long
run unattended would reduce the morale and may lead to attrition.
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Limitation of the Study-
Any research study will be restricted in scope by certain inherent limitations that are participated by the choice of
the research design. This study has the following limitations:
Even though the survey was conducted for the employee performance review the study does not match with
the entire population in the company.
Because of time constraints, the sample size is restricted to 20, which may not reflect the opinion of the
entire population in the company.
Since study was restricted to samples. Sample may behave or give different opinions at different times
because of their psychological temperament. This will affect the study.
Data could be collected from only 20 respondents as they were busy and could not respond so well to the
questionnaires.
Most of the organization hesitates to give confidential HR information which is needed for the study like
expectation in salary, periodical incremental percentage.
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QUESTIONAIRE
Part A:
Name of the Respondent
: ______________________
Age
: ______________________
Gender
: ______________________
Qualification
: ______________________
Designation
: _______________________
Part B:
1.
Is the Performance Appraisal process user friendly?

a. Yes
2.
Is Performance Appraisal conducted on time?

a. Yes
3.
b. No
Do you receive an orientation on how to conduct appraisal process?

a. Yes
6.
b. No
Is Performance Appraisal process is simple to understand?

a. Yes
5.
b. No
Does Performance Appraisal process assess fairly?

a. Yes
4.
b. No
b. No
How much time is spent in preparing for feedback session?
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a- 1 hour
7.
b- 2 hour
In your opinion how is overall performance appraisal system in

BAJAJ ALLIANZ LIFE INSURANCE?
a. Excellent
8.
b- Good
c- Average
d- Poor
a) Are you satisfied with the current appraisal system?

a. Yes
b. No
b) If not then what are the areas need to be improved?

a. Time
9.
b. Process
Do you feel any difficulty in handling them?

a. Yes
b. No
10. What other process can be included making the appraisal process much
better?
a. MBO
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b. Critical Incident Method
c. Web based Method.
Performance appraisal is very important for any company. It helps to make the companies
employee work better and show good result for the company too. This helps the company to turn
out to be profit making company.
As in BAJAJ ALLIANZ LIFE INSURANCE we are using the Rating scales or Fair
comparison method mostly to grade the performance of the employees. The method used by the
company is very fair and it is very easy to be adopted by the personnels. This method is very
convenient to be used. But the drawback associated with the method is that it has now became an
out dated method to be used because there are fifty percent chances of biasness to occur for a
particular employee by the raters.
After the survey and the conversation by the people of other company we came to know that they
have introduced the 360-degree performance appraisal in the company. Before they were using
the same method as used by BAJAJ ALLIANZ LIFE INSURANCE at times they used Forced
83 | P a g e
choice method also to rate the performance, which affected the companies working to a great
extent.
But when they realized that they are having complains from the workers, staff etc. they decided
to go for a change and now they incorporated 360-deree performance appraisal, the result of
using this method is that everyone in the company is satisfied by it.
Hence accordingly to my views I would also suggest the company to go for the change it the
method adopted by them for better results and employee satisfaction.
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Bibliography
1. V S P Rao, Human Resource Management, Anurag Jain for Excel Books, New
Delhi.
2. Dr. K Ashwathappa, Human Resource & Personal management, TATA
McGraw-Hill Publishing Company limited, New Delhi.
3. Prem Chadha, Performance Management
4. Google Engine Search
5. www.appraisals.naukrihub.com
6. www.performance-appraisal.com
7. Wikipedia -An Encyclopedia
85 | P a g e

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A Training Report

Project Guide: Ashwin Divakaran

Submitted By: Nidhi kukreja

To be t he fi rst choi c e i nsurer for cust om e rs.

To be t he pre fer red em pl o yee fo r st aff i n t he i nsuranc e i ndust r y.

C urrent l y have over 300000 sat i sfi ed cust om ers.

S hareh old e rs & Promot ers

Vast di st ri buti on net work.

Knowl edge of In di an consum ers.

Fi nanci al st rengt h and st abi li t y t o support t he i nsurance busi ness

P ropert y and casual t y i nsurance,

Li fe and heal t h insurance,

Asset m anagem ent and banki ng.

CO RE CO MPE T E NCIE S AT B AJAJ AL L IANZ LIFE INS URANCE

C l ai ms Phi l osophy Cust omer Ori ent at i on

Experienced and Expert Servicing Team

Uni que Form s of Ri sk C over

Scope & Objective

OBJECTIVES OF THE PROJECT

The basic objectives of this project is:

To find out present performance appraisal system used in the

To suggest some measures for improving the methods to appraise

Perf or man c e Ap p rai sal

What is Performance Appraisal?

Performance appraisal is used for :-

Determining training need for further improvement in performance.

Motivating employees by indicating their performance levels.

Goals of the Performance Appraisal System :-

Who Should Conduct the Appraisal?

The Performance Appraisal Process

Performance Standard and

Measurable: - Goals and objectives should be written so that accomplishment

accomplishment can be objectively measured.

METHODS OF PERFORMANCE APPRAISAL:-

Behavioral Anchored Rating Scales :- The terms used to decribe a

performance rating that

Behavioral observations scale.

Behavioral expectations scale.

Numerically anchored ating scales.

Graphic Rating Scale:- The term used to define

the oldest and most widely used performance

statements about effective and ineffective behavior on jobs.

Purpose of Traditional Performance Appraisal

Promotion , separation and transfer decision.

Criteria for evaluating the effectiveness of selection and placement

Developmental Performance Approach Purposes

contained all of the traditional overall organizational

performance appraisal purposes and the following additional purposes:

Expectation from a Manager doing a Performance Appraisal

Waste and brokerage

10. Judgment by peers

Instructions for using performance appraisal system

Performance Evaluation System :

Performance Evaluation Form as a discussion tool.

There are two other forms you may need to use:

The Performance Improvement Plan form (used when a rating is #1 Unacceptable or #2

Rating Process And Criteria :

Signature On The Evaluation Form

Evaluation When A New Supervisor is Appointed :

Steps to complete the annual performance evaluation procedure:

Step 6: Unacceptable or Improvement Needed Rating: If y rate an employee with a 1 Unacceptable or 2

The problem areas of performance that are determined to be unacceptable.

Identify performance standards that must be achieved to meet acceptable standards.