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A Summer Training Report On “PERFORMANCE APPRAISAL OF EMPLOYEES IN VODAFONE” Submitted in partial fulfillment for the award of the degree of

Bachelor of Business Administration (General)

A Summer Training Report On “PERFORMANCE APPRAISAL OF EMPLOYEES IN VODAFONE” Submitted in partial fulfillment for

Submitted to Mr. Vikrant Aggarwal
02251501714 Associated Professor

Submitted by RIYA KUKREJA

Batch 2014-2017 KASTURI RAM COLLEGE OF HIGHER EDUCATION

NARELA,DELHI-110040

(Affiliated to GURU GOBIND SINGH UNIVERSITY)

1

Acknowledgement

A project is never the work of an individual it is more over a combination of ideas, suggestions, review and contribution. It cannot be completed without outlines. I feel pleasure on expanding my deep, heartly and profound sense of gratitude to my project coordinator "MR.VIKRANT AGGARWAL" under their proper guidance for project aspects of study progressed. The goal of how idea and developed can only be obtained by headwork. I acknowledge my innermost gratitude to my project guide for their best cooperation and kind assistance during farming of their project. Finally, I would like to thank my - wishers because of their blessings and cooperation thoughtout study, they boost up me everyday to work with a new and high spirit.

Riya kukreja

(02251501714)

BBA(G) 5th semester

2

CERTIFICATE

This is to certify that "Riya kukreja" has accomplish the project "PERFORMANCE APPRAISAL OF EMPLOYEES IN VODAFONE " under my guidance and supervision . He has submitted this project till fulfillment for the award of Bachelor of Business Administration (general) from Guru Gobind Singh Indraprastha University. The work has not been submitted anywhere else for the award of degree. All source of information have been duely mentioned order the guidance of Project coordinate

MR.Vikrant Aggarwal (Associated Professor)

3

 

CONTENTS

Chapter 1: Introduction

 

Chapter 2: Objective and Methodology of the Study

Chapter

3:

Organization Profile

Chapter

4:

Performance Appraisal- Theoretical Review

Chapter

5:

Performance Appraisal System in Vodafone.

Chapter

6:

Analysis and Interpretation of Data

Chapter

7:

Conclusion and Suggestions

Annexure

4

CHAPTER

1

INTRODUCTION

CHAPTER 1

TITLE OF THE PROJECT:

Study of Performance Appraisal System and Its Effectiveness in an Organization

INTRODUCTION

The history of performance appraisal is quite brief.

Its

roots

in

the

early

20th

century

can

be

traced

to

Taylor's

pioneering Time and Motion studies. But this is

not very helpful,

for the same may be said about almost everything in the field of

modern human resources management.

As a distinct and formal management procedure

used

in

the

evaluation of work performance, appraisal

really

dates

from

the

time of the Second World War -not more than 60 years ago.

Yet in a broader sense, the practice of appraisal is

a

very ancient

art.

In

the

scale

of

things historical, it

might

well lay claim

to

being the world's second oldest profession!

There is, says Dulewicz (1989), "

...

a

basic

human

tendency

to make

judgements about those one is working with, as well as about

oneself." Appraisal, it seems, is both inevitable and universal. In the absence of a carefully structured system of appraisal, people will tend to judge the work performance of others, including subordinates, naturally, informally and arbitrarily.

The human inclination to judge can create serious motivational, ethical and legal problems in the workplace. Without a structured appraisal system, there is little chance of ensuring that the judgements made will be lawful, fair, defensible and accurate.

Performance appraisal systems began as simple

methods

of

income justification. That is, appraisal was used to decide whether or not the salary or wage of an individual employee was justified.

The process was firmly linked to material outcomes. If an employee's

performance was found to be less than ideal, a

cut in pay would

follow. On the other hand, if their performance was better than the

supervisor expected, a pay rise was in order.

Little consideration, if any, was given to the developmental

possibilities of appraisal.

If was

felt that

a

cut

in pay,

or

a

rise,

should provide the only required impetus for an employee to either improve or continue to perform well.

Sometimes this basic system succeeded in getting the results that were

intended; but more often than not, it

failed.

For example, early motivational researchers were aware that different people with roughly equal work abilities could be paid the same amount of money and yet have quite different levels of motivation and performance.

These observations were confirmed in empirical studies. Pay rates

were important, yes; but they were not the only element that had an impact on employee performance. It was found that other

issues, such as morale and self-esteem, influence.

could

also

have

a major

As a result, the traditional emphasis on reward outcomes was progressively rejected. In the 1950s in the United States, the potential usefulness of appraisal as tool for motivation and development was gradually recognized. The general model of performance appraisal, as it is known today, began from that time.

Modern Appraisal

Performance appraisal

may

be

defined

as

a

structured

formal

interaction between a subordinate and supervisor, that usually takes the form of a periodic interview (annual or in which the work performance of the subordinate is examined and discussed, with a view to identifying weaknesses 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 performers 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

to dismiss

employees

or

decrease

pay.)

Whether this is an appropriate use of performance appraisal -the assignment and justification of rewards and penalties -is a very uncertain and contentious matter.

Controversy, Controversy

Few

issues

in

management

stir

up

more

controversy

than

performance appraisal.

There

are

many

reputable

sources -researchers, management

commentators,

psychometricians

 

-who

have

expressed

doubts

about

the

validity

and

reliability

of

the

performance

appraisal

process.

Some

have

even

suggested

that

the

process

is

so

inherently

flawed

that

it

may

be

impossible

to

perfect

it

(see

Derven, 1990, for example). At the other extreme, there are many

strong

advocates

of

performance

appraisal.

Some

view

 

it

as

"

 

potentially

... (Lawrie, 1990).

the

most

crucial

aspect

of

organizational

life"

Between these two extremes lie various schools of belief.

While

all endorse the use of performance appraisal, different opinions on how and when to apply it,

there

are

many

There are those, for instance, who believe that performance appraisal has many important employee development uses, but scorn any attempt to link the process to reward outcomes -such as pay rises and promotions. This group believes that the linkage to reward outcomes reduces or eliminates the developmental value of appraisals. Rather than an opportunity for constructive review and encouragement, the reward- linked process is perceived as

judgmental, punitive and harrowing. For example, how

many

people would gladly admit their work problems if, at

the

same

time, they knew that their next pay rise or a much-wanted

promotion was riding on an appraisal result? Very likely, in that

situation, many people would deny or downplay their

weaknesses.

Nor

is

the

desire

to distort

or deny

the truth

confined

to

the

person being appraised. Many appraisers feel uncomfortable with

the combined role of judge and executioner.

Such reluctance is not difficult to understand. Appraisers often know their appraisees well, and are typically in a direct subordinate-supervisor relationship. They work together on a daily basis and may, at times, mix socially. Suggesting that a subordinate needs to brush up on certain work skills is one thing; giving an appraisal result that has the direct effect of negating a promotion is another.

The result can be resentment and serious morale damage, leading to workplace disruption, soured relationships and productivity declines.

On the other hand, there that performance appraisal

is

a

strong rival argument which claims

must

unequivocally

be

linked

to

reward outcomes. The advocates of this approach say that

organizations

must

have

a process

by which

rewards

-which are

not an unlimited resource -may be openly and fairly distributed to those most deserving on the basis of merit, effort and results.

There is a critical need for remunerative justice in organizations.

Performance

appraisal

-whatever

its

practical

flaws

-is

the

only

process available

to

help

achieve

fair,

decent

and

consistent

reward outcomes.

It

has

also

been

claimed

that appraisees

themselves are inclined to believe that appraisal results should be

linked directly

to

reward

outcomes

-and

are

suspicious

and

disappointed

when

told

this

is

not

the

case.

Rather

than

feeling

relieved; appraisees

may suspect

that they

are not being

told the

whole truth, or that the appraisal time.

process

is

a sham

and waste

of

The Link to Rewards

 

Recent research (Bannister

&

Balkin,

1990)

has

reported

that

appraisees seem to have greater acceptance of the appraisal process, and feel more satisfied with it, when the process is

directly linked to rewards. Such findings are a serious challenge

to those who feel that appraisal results and reward outcomes must

be

strictly isolated from each other. There is also a group who argues that the evaluation of employees for reward purposes, and frank communication with them about their performance, are part

of the basic responsibilities of management. The practice of not discussing reward issues while appraising performance is, say critics, based on inconsistent and muddled ideas of motivation. In many organizations, this inconsistency is aggravated by the practice of having separate wage and salary reviews, in which merit rises and bonuses are decided arbitrarily, and often secretly, by supervisors and managers.

There are basically three purposes to which performance appraisal can be put. First, it can be used as a basis for reward allocation. Decision as to who gets salary increase, promotion, and other

rewards are determined by their performance evaluation.

Second,

these appraisals can be used for identifying areas where

development efforts are needed. The performance appraisal is a

major tool for identifying deficiencies

in

individuals.

Finally

it

can be used as a criterion against which selection devices and

development programs are validated. As a key input into management's reward and punishment decision, performance appraisals can motivate or de-motivate employees.

Three different approaches exist for doing appraisals. Employees can be appraised against

1.

Absolute

standards

2.

Relative

standards

3.

Objectives

PERFORMANCE MANAGEMENT

Since organisations exits to achieve goals, the degree of success that individual employees have in reaching their individual goals

is important in determining organisation

effectiveness.

Performance system is fundamentally, a feed back process, which require sustained commitment. The cost of failure to provide such feedback may result in a loss of key professional employees, the continued poor performance of employees who are not meeting performance standards and a loss of commitment by employees, in sum, the myth that the employee know what. they are doing without adequate feedback from management can be an expensive fantasy.

THE APPRAISAL PROCESS

  • 1. Establishing Performance

Standard

  • 2. Communicate Performance expectations to employees 3. Measure actual performance

    • 4. Compare actual performance with

standards

  • 5. Discussion with the employees and identification development programs to bridge the

gap.

  • 6. Initiate action

THE PURPOSE OF APPRAISING PERFORMANCE

In general the appraisal systems serve a two fold

purpose

  • 1. To improve the work performance of employees by helping them realize and use their full potential in carrying out their firms mission.

  • 2. To provide information to employees and managers for use in making , work related decisions.

More specifically appraisals serve the following

purposes.

  • a) Appraisals provide feedback to employees and help the. "' management identify the areas where development efforts are "' needed to bridge the gaps thereby serving as vehicles for personal " and career development.

  • b) It helps management spot

individuals

who

have

specific

skills

so

that

their

promotions/transfer

are

in

line

with

organizational requirements.

  • c) Appraisal serve as a key input for administering a formal organisation reward and punishment system.

  • d) The performance

system

can

be used

as a criterion

against

which

selection

devices

and

development

programs

are

validated.

REQUIREMENT OF THE PERFORMANCE MANAGEMENT SYSTEM.

Reliability:

The

foremost

requirement

of

a

sound

system

is

reliability. In this contact it refers to

consistency of

judgement.

For

any

given

employee,

appraisals

made

by

raters

working

independently of one another should agree

closely.

But

raters

with

different

perspective

(e.g.

supervisors,

peers,

subordinates)

may

see the same

individuals job

performance very

differently.

To provide

reliable

data,

each

rater

must

have

an

adequate

opportunity to observe what the employee has done and the

condition under which he or she has done it. By making appraisal

system

relevant,

sensitive

and

reliable

we

assume

the

resulting

judgement are valid as

well.

Acceptability:

In

practice,

acceptability

is

the

most

important

requirement of all, for it is true that human resources program must have the support of. those who will use them. Unfortunately, many organisations do not put much effort into

garnering the front end support and participation of

those

who

will use the appraisal system. Ultimately it is management's

responsibility to define as

clearly as

possible the

type and level

of job behaviour desired of

employees.

It is important to enlist the active support and cooperation of subordinates by making explicit what aspects of job performance they will be evaluated on. Practicality: This implies that appraisal instruments are easy for

managers and employees to understand and to

use.

For years, personnel specialists have searched for the 'Perfect; appraisal method as if it were some kind of miraculous cure for many pitfalls that plague organisations. Such a method does not exist. In tommorrow's world of work far more emphasis needs to be placed on process issues. Factors such as timing and

frequency are no less important. In

sum

performance appraisal is

a dialogue involving people and data. Both technical and human

issues are involved. Neither can be overemphasized at the

expense of the

other.

WHO SHOULD EVALUATE PERFORMANCE?

The most fundamental requirement for any rater is that he or

she

has an . adequate opportunity to observe the rates job performance

over a reasonable period of time. This suggest several raters.

possible

The immediate supervisor: Generally appraisal is done by this person. He is probably the most familiar with the individual's performance and in most jobs has had the best opportunity to observe actual job performance. Further more, the immediate supervisor is probably best able to relate the individual's performings to department and organisationalobjectives.

In some jobs such

as

outside

sales,

law

enforcement

and

teaching, the immediate supervisor may observe a subordinate's actual job performance rarely (and indirectly thru written reports). Here judgement of peers play important role. However, there is a danger of potential bias.

Subordinates: Appraisal by subordinates can be useful input to the

immediate development. Subordinates know first hand the

extent

to which the supervisor actually delegates, how well he

communicates, the type of leadership he has and the extent

to

which he or she plans and orgamses.

Self appraisal: On one hand it improves the rate's motivation and moral, on the other it tends to be more lenient, less variable and biased. The evidence on the accuracy of self assessment is fairly complex.

In industry it is seen that feed back/ input is taken from various sources -Peers, subordinates, superiors etc. Some companies have gone step ahead in taking feedback from the customers and integrating it into the performance management process.

APPROACHES TO PERFORMANCE MANAGEMENT

The traditional approach: The one dimensional

model

The Job

Define what results have to e achieved

Performance contact

Define a set of key objectives against the accountabilities

Accountabilities i.e, output

Review performance against the key

objectives

In this model job expectations are defined in terms of what results

have to be achieved. This

model

doesn't have a

long

term

focus

and can't be used for employee development and career

path

planning,

A satisfactory performance

implies

doing

a

job

effectively

and

efficiently, with a minimum degree of employee -created disruptions. Employees are performing well when they are

productive. Yet productivity itself implies both concern for effectiveness and efficiency. Effectiveness refers to goal

accomplishment. Efficiency evaluates the ratio of inputs consumed

to outputs achieved.

The greater

the output

for

a given

input,

the

more efficient

the

employees.

Similarly,

if

output

is

a

given,

consumed to get that output results in greater efficiency.

There are basically three purposes to which performance appraisal can be put. First, it can be used as a basis for reward allocations. Decisions as to who gets salary increases, promotions, and other rewards are determined by their performance evaluation. Second, these appraisals can be used for identifying areas where development efforts are needed. Management needs to spot those individuals who have specific skill or knowledge deficiencies. The performance appraisal is a major tool for identifying these deficiencies. Finally, the performance appraisal can be used as a criterion against which selection devices and development programs are validated.

Chapter 2

OBJECTIVE AND METHODOLOGY OF THE STUDY

Chapter 2

OBJECTIVE AND METHODOLOGY OF THE STUDY

1. Objective of the

study

This project aims at studying the system of performance appraisal and its effectiveness in an organisation. Performance appraisal is the most significant and indispensable tool for the management as it provide useful information for decision making in area of promotion and compensation reviews.

Thus broad objectives of the study

includes:

To know the present system of performance

appraisal

To know the extent of effectiveness of the appraisal

system

To identify and know the area for improvement

system

2. Sample of the

study

The population covered for the present study

consisted

of employee

belonging to supervisory and the level above. For the purpose of this

study, survey covered the supervisor and the level

employee

of

VODAFONE falling under

above.

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

to supervisory level

3. Methodology of the

project

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

The details of the methodology adopted are presented below:

The Questionnaire

Keeping in view the objective of the study, questionnaire

was

designed and tested on few employees. After getting the proper

response and sanction from the concerned department the questionnaire was finalised.

Response to Questionnaire

In

all

96 questionnaire

were

given

to employees

falling

in

the

category of supervisors

and

above.

Out

of

which

48

could

be

collected back duly completed. The researcher individually

contacted the employees to get response on the

questionnaire.

Data entry and analysis

It

has

been

an

uphill

task

to

enter

the

enormous

data

received

through

the

questionnaire

which

consisted

nearly

20

questions.

Resgonse

to

the

descriptive

questions

though

very

few

but

was

valuable

for

the

purpose

of

study.

Hence

these

were

further

structured in time with the system

adopted

for

compilation

and

data analysis.

Limitations

Many employees gave guarded answers to some crucial questions. Some of them did not fill the questionnaire due to lack of time Response could not be collected from the total sample selected. Some of the questionnaire could not be completed due to reasons other than time factor. The confidentiality of the system created some problem in getting information.

Chapter 3 ORGANISATION PROFILE

Chapter 3 ORGANISATION PROFILE

.

Chapter 3 ORGANISATION PROFILE . Vodafone over the years As Vodafone was formed in 1984 as
Chapter 3 ORGANISATION PROFILE . Vodafone over the years As Vodafone was formed in 1984 as

Vodafone over the years

As Vodafone was formed in 1984 as a subsidiary of Racal Electronics Plc. Then known Racal Telecom Limited, approximately 20% of the company's capital was offered to the public in October 1988. It was fully demerged from Racal Electronics Plc and became an independent company in September 1991, at which time it changed its name to Vodafone Group Plc.

Following its merger with Air Touch Communications, Inc. (‘Air Touch’), we changed our name to Vodafone Air Touch Plc on 29 June 1999 and, following approval by the shareholders in General Meeting, reverted to our former name, Vodafone Group Plc, on 28 July 2000.

Key milestones in the development of Vodafone can be found in the following sections, organized by year:

2007

Vodafone agrees to acquire Tele2 Italia SpA and Tele2 Telecommunication Services SLU from Tele2 AB Group. (October)

Vodafone announces completion of the acquisition of Hutch Essar from Hutchison Telecommunications International Limited. (May)

Safaricom, Vodafone’s partner in Kenya announces the launch of M-PESA, an innovative new mobile payment solution that enables customers to complete simple financial transactions by mobile phone. (February)

Vodafone agrees to buy a controlling interest in Hutchison Essar Limited, a leading operator in the fast growing Indian mobile market, (February)

Vodafone announces agreements with both Microsoft and Yahoo! to bring seamless Instant Messaging (IM) services to the mobile which can be accessed from both the PC and mobile handsets. (February)

Vodafone signs a series of ground-breaking agreements which will lead to the mobilizing of the internet. You Tube agrees to offer Vodafone customers specially rendered You Tube pages on their mobile phones. With Google, Vodafone announces its intention to develop a location-based version of Google Maps for. With eBay, Vodafone announces it is to offer the new eBay mobile service to customers, With MySpace.com Vodafone announces an exclusive partnership to offer Vodafone customers a My Space experience via their mobile phones. (February).

Vodafone reaches 200 million customers (January)

2006

Sale of 25% stake in Switzerland's Swiss COM (December) Sale of 25% stake in Belgium's Proximus. (August) The number of Vodafone lives! Customers with 3G reached 10 million in March 2006.

We acquired Telsim Mobil Telekomunikasyon Hostetler (Turkey) in May 2006.

Launch of mobile TV capability and Vodafone Radio DJ, which offers a personalized, interactive radio service streamed to 3G phones and PCs.

3G broadband through HSDPA launched offering faster than 3G speeds. Japan business sold to Softbank.

‘Make the most of now’ global marketing campaign launched. Sir John Bond succeeds Lord MacLaurin as Chairman.

2005

We completed the acquisition of MobiFon S.A. (Romania) and Oscar

Mobile

a.c. (Czech Republic) (May).

Launch of Vodafone Simply, a new easy-to-use service for customers who want to use voice and text services with minimum complexity (May).

Introduction of Vodafone Passport, a voice roaming price plan that provides customers with greater price clarity when using mobile voice services abroad (May).

2004

We launched our first 3G service in Europe with Vodafone Mobile Connect

3G/GPRS data card.

We have 14 Partner Networks with new agreements in Cyprus, Hong Kong and Luxembourg. Vodafone live! with 3G launched in 13 markets (November).

2003

At the GSM Association Awards Ceremony in Cannes, France, we won the mobile industry's most prestigious awards in two categories, Best Consumer Wireless Application or Service and Best Television or Broadcast Commercial for its global consumer service, Vodafone live! Our premium handset for Vodafone live!, the Sharp GX10, won the Best Wireless Handset Award for the Sharp Corporation.

Vodafone live! attracts 1 million customers in its first six months.

Verizon Wireless and Vodafone co-operate on laptop e-mail, internet and corporate applications access for the US and Europe.

Arums Sarin succeeds Sir Christopher Gent as Chief Executive.

2002

We trial our global mobile payment system in the UK, Italy and Germany. The trial

enables customers to purchase physical and digital goods using their mobile phone. We launch the first commercial European GPRS roaming service. Customers are able to seamlessly access services such as corporate e-mail, intranet and personalized information on their mobile phones, laptops or PDAs over GPRS.

The Vodafone Group Foundation is launched, with plans to contribute £20 million to community programmers, guided by the Group Social Investment Policy.

In October, we announce the launch of Vodafone live!, a new consumer proposition, and Mobile Office, a new business proposition. In November, Vodafone Remote Access is launched as part of Mobile Office. The service gives business customers an easy way to connect to their corporate LAN to access e-mail, calendar and other business specific applications whilst on the move.

2001

We acquire Ireland's leading mobile communications company, Eircell. Vodafone and China Mobile (Hong Kong) ltd (CHMK) sign a 'strategic alliance agreement'. The Group completes the acquisition of a 25% stake in Swisscom Mobile.

We introduce instant messaging to our networks, a faster and more efficient way to communicate using text messages via SMS or WAP.

First global communications campaign launched in August. The campaign features TV, cinema, print, online and outdoor media, each version asking the question, 'How are you?'.

First Vodafone Partner Agreement with TDC Mobil A/S, Denmark's leading mobile operator. The agreement is the first of its kind in the mobile industry and means Vodafone and TDC Mobil will cooperate in developing, marketing and advertising international roaming products and services to international travellers and corporate customers.

We make the word's first 3G roaming call (between Spain and Japan).

2000

On 4 February, terms are agreed with the Supervisory Board of Mannesmann by

which Mannesmann would become a part of the Vodafone community. The transaction almost doubles the size of the Vodafone Group.

The agreement to acquire Mannesmann AG receives European Commission clearance on 12 April 2000.

Verizon Wireless is launched in May, the combination of Vodafone AirTouch's and Bell Atlantic's US cellular, PCS and paging assets.

Vodafone Essar is a cellular operator in India that covers16 telecom circles in India .the name of the company ,the marketing brand used is simply Vodafone .its offers both prepaid postpaid GSM cellular phone coverage through out India and is especially strong in the metros. Vodafone Essar provides 2G services based on 900Mhz and 1800Mhz digital GSM technology ,offering voices and data services in 16 of the countries 23 license .the company is often praised for its aware winning advertisement which all follow a clean ,minimalist look .Sep 19 2007;Vodafone the world leading international mobile communication company has fully arrived in India .Vodafone Essar announced today that the Vodafone brand will be launched in India from 21 st sep onward .The popular and endearing brand ,Hutch will be transitioned to Vodafone across India .this marked a significant chapter in the evolution of Vodafone as a dynamic and ever growing brand .Vodafone the world leading mobile tel Essar in may 2007 &company was formally renamed Vodafone Essar in July 2007 .Asim Ghosh , Managing Director of Vodafone. Vodafone group ‘s communication company completed the acquisition of Hutch Arun

Sarin is visiting in India even as the British operator bid for a majority stake in India mobile services operator Hutchison Essar has run into tough competition

Vodafone Essar is owned by Vodafone 67%Essar group 33%.on 11feb 2007 Vodafone agreed to acquired the controlling interest of 67% held by CheungKong holding in hutch Essar for US$11.1 billion, piping Reliance communication, Hinduga group and Essar group, which is the owner of the remaining 33%.the whole company was valued at U S D 18.8 billion .the transaction closed on 8 may 2007

In December 2006 Hutch Essar re launched the “Hutch” brand nation wide ,consolidating its services under a single identity .the companioned into agreement with NTT Do Co Mo to launch i-mode mobile internet service in India during 2007 .the company used to be named Hutchison Essar ,reflecting the of its previous owner ,Hutchison .the brand was marketed as Hutch .after getting the necessary government approvals with regard to the acquisition of a majority by the Vodafone group .The company was rebranded as Vodafone Essar.

Vodafone have both Prepaid& Postpaid &have a15.36 million subscribers and 17.04% market. share in India and operator 16 circle

Chapter 4 PERFORMANCE APPRAISAL

Chapter 4 PERFORMANCE APPRAISAL

Since organisation exist to achieve goals, the degree of success

that individual employees have in reaching their individuals goals

is important in determining organizational effectiveness. The

assessment of how successful employees have been at meeting

their individual goals, therefore, becomes a critical part of HRM.

This leads us to the topic of performance appraisal.

PURPOSE

There are basically three purposes

to

which

performance

appraisal can be put.

 

First,

it

can

be

used

as

a

basis

for

reward

allocations.

Decisions as to who gets salary jncreases, promotions, and other rewards are

determined by their performance evaluation.

Second, these appraisals can be used for identifying areas

where development efforts are needed. Management needs to spot

those individuals who have specific skill or knowledge

deficiencies. The performance appraisals

is

a

major

tool

for

identifying these deficiencies.

Finally the performance appraisal can be used as a

criterion

against which selection devices and development programs are

validated. It is one thing to say, for example, that our selection

process is successful in differentiating satisfactory performers

from unsatisfactory performers.

HE APPRAISAL PROCESS

Established performance standard Communicate performance expectations to employee Measure actual performance Compare actual performance with standards

Established performance

standard

Established performance standard Communicate performance expectations to employee Measure actual performance Compare actual performance with standards

Communicate performance expectations to

employee

Established performance standard Communicate performance expectations to employee Measure actual performance Compare actual performance with standards

Measure actual performance

Established performance standard Communicate performance expectations to employee Measure actual performance Compare actual performance with standards

Compare actual performance with standards

Established performance standard Communicate performance expectations to employee Measure actual performance Compare actual performance with standards

Discuss the appraisal with the

employees.

Established performance standard Communicate performance expectations to employee Measure actual performance Compare actual performance with standards

If necessary, initiate the corrective

action

The appraisal process begins with the establishment

of

performance standards. These should have evolved out of job

analysis and the job description discussed under human resource

planning. These performance standards should also be clear and

objective enough to be understood and measured. Too often, these

standards are articulated in some such phrase as

"a

full

day's

work" or "a good job". Communication only takes place when the

transference has taken place and has been received and

understood by the subordinate. Therefore feedback

is

necessary

from the subordinate to the manager. Satisfactory feedback

censures that the information communicated

by the manager

has

been received and understood in the way it was

intended.

 

The third

step

in

the

appraisal

in

the

measurement

of

performance.

To

determine

what

actual

performance.

To

determine

what actual

performance

is,

it is necessary

to acquire

information

about

it.

We

should

be

concerned

with

how

we

measure and what we

measure.

 

What we measure is probably more critical

to

the

evaluation

process than how we measure, since the selection of the wrong

criteria can result in serious dysfunctional consequences. And

what we measure determines, to a great extent, what people in the

organization will attempt to excel at.

One of the most

challenging tasks facing managers is

to

present

an

.

accurate

appraisal

to

the

subordinate

and

then

have

the

subordinate

accept

the

appraisal

in

a

constructive

manner.

Appraising performance touches on one of the most emotionally

charged activities the assessment of another individual's

contribution and ability. The impression that subordinates receive

about their assessment has a strong impact on their self-esteem

and, very important, on their subsequent performance.

The final

step in the appraisal

is

the

initiation

of

corrective

action when necessary. Corrective action can,

be

of

two

types.

One is immediate and deals predominantly with symptoms. The

other is basic and delves into causes. Immediate corrective action

often described

as

"putting

out

fires,"

whereas

basic corrective

action gets to the source of deviation and seeks to adjust the

difference permanently.

Immediate action corrects something right now and gets things

back on track.

Chapter 5

PERFORMANCE APPRAISAL SYSTEM IN VODAFONE

Chapter 5

PERFORMANCE APPRAISAL SYSTEM IN VODAFONE

In Vodafone they have the system of performance appraisal of

their employees. The main objective of this performance

appraisal system is to evaluate the performance, promote their

employees and to arrange for their various training programmes

if they require for enhancing their skills in their respective areas

and in contribution enhancement ..

Employees are evaluated by how well they accomplish a specific

set of objectives that have been determined to be critical in the

successful completion of their job. This approach is frequently

referred to as . management by objectives. Management by

objectives is a process that converts

organization~l

objectives

into individual objectives. It can be thought of as consisting of

four steps: goal setting, action planning, self- control, and

periodic reviews. In goal setting, the organization's overall

objectives are used as guidelines from which departmental and

individual objectives are set. In action planing, the means are

determined for achieving the ends established in goal setting.

That is, realistic

plans

are

developed

to attain

the

objectives.

Self-control refers to the systematic monitoring and measuring

of performance. Finally, with periodic progress reviews,

corrective action is initiated when behaviour deviates from the

standards established in the goal-setting phase. Vodafone uses very

constructive performance appraisal process while evaluating its

employees. Its evaluation is based on quantitativewise and

objectivewise.

Company set goals to its employee by properly reporting with its employees

and then evaluating them upto what extent it has been achieved and if there is

failure in reaching the target what are the causes or reasons behind it.

Every evaluator has his or her own value system which acts as a

standard against which appraisals are made. Relative to the true

or actual performance an individual exhibits, some evaluator~ mark

high and others low. The former is referred to as positive leniency

error and the latter as negative leniency error. When evaluators are

positively lenient in their appraisal, an individual's performance

becomes over- stated; that is, rated higher than it actually should.

Similarly, a negative leniency error understates performance, giving

the individual a lower appraisal. As such there is no scope of error

as far as the Vodafone company is concerned, but sometimes over

estimation of target brings

about a description in the evaluating criteria. Thus, though

chances are less, positive leniency errors have been stated to be committed.

Outcome of Performance Appraisal

As far as Vodafone company is concerned, there are four outcomes possible:

  • a. Outstanding -If the performance evaluated by the management

turns

out

to

be

outstanding.

If

the

employee

performs in such a way as to collect 3 consecutive

outstanding

performance

into

his/her

credit)

he

/

she

gets

promoted.

  • b. Excellent -If the performance evaluated

by the management

turns out to be excellent. If the employee performs

in such

a

way

as

to collect

3 consecutive

excellent

performance

into

his/her credit, he/she gets

promoted.

  • c. Good -If the performance evaluated by the management turns

out to be good. The management

sends the employee

to

the

training

programme

to improve

his/.her

skill

to perform

form.

  • d. Below average

-If

the

performance

evaluated

by

 

the

management

turns

out

to

be

below

average.

And,

if

the

employee

collects

3

below

average

to

his/her

credit,

then

he/she dismissed

Duration of Appraisal System

The time constraints

enables

the

employee

to

show

or

project

his/her capabilities

in

term

of

performance

as

per

the

duration

allowed. In Vodafone, the performance appraisal system is carried

out annually.

Feedback

The company provides

the annual feedback

to its employees

and

thus,

in

term

bring

out

the

highlights

of

the

self

assessment

programme.

This

enables

the

better

communicaiton

between

the

management and employees ad thus, helps in promoting

the

business future.

Response

There are mixed responses from the feedback by the employees. It has helped

some of the employees in motivating themselves while those who felt bad

were thoroughly communicated and all the confusion and failure part were

discussed with employees.

Chapter 6 ANALYSIS AND INTERPRETATION OF DATA

Chapter 6 ANALYSIS AND INTERPRETATION OF DATA

After collecting the data on "Performance Appraisal System" data

was Analyzed and interpreted.

 

The

various

topics

covered

for

analysis and interpretation of data are: )

 

1. Promotions

 

A promotion

may

be

defined

as

an

upward

advancement

of

an

employee

in an organisation

to another

job,

which

commands

better pay/wages,

 

better

status

/

prestige

and

higher

opportunities

/

challenges

and

 

responsibility,

a

better

working

environment, hours of work and facilities

etc.

Promoters have a salutary effect on the satisfaction

of

the

promoted person's need for esteem, belonging and security. They

also afford an opportunity for greater self-actualizing action

through more varied and challenging assignments. The promotion

policies differ from an organisation to another.

The guidelines for departmental promotion in are same

for

male

and female employees. The period of experience

required

for filling

a higher post departmentally

varies

from

3-5

years.

5

years

experience for promotion to managerial staff and 3 years

experience for promotion to Junior Management staff is

needed.

The

other

area

of

promotion

apart

from

seniority

are

merit

and

fitness.

Though

these

guidelines

are

not

in

a written

format

the

supervisor

and

manager

get

it

at

the

time

of

appraisal

from

the

personnel department.

As per the guidelines from the personnel department employees

are to be promoted accordingly. However there is confusion

among the employee as these guidelines are not being explained

time to time, many are not aware of the existing promotion policy

in the organisation.

Respondents were asked whether the promotion is well defined in the

organisation. The responses are given

below:

N=96

Response

Number

Percentage

Yes

16

16.66

No

52

54.16

Can't say

28

29.16

From the above table, it can be seen that 30% agree that promotion is well defined in the organisation. However 54% were not able to

say

it

as

there

is lack of information

about the promotion policy.

Every employee need to be communicated about the existing

promotion policy.

0 52 16 28 60 50 40 30 20 10 Series1
0
52
16
28
60
50
40
30
20
10
Series1

YesNoCan't Say

Respondent were also asked to suggest any change in the policy.

The responses were as given

below:

Response

Number

Percentage

Merit not recognized

20

20.83

Does not define career plan

26

16.66

Not integrated with business

0

0

Heterogeneity within policy for different position

56 58.83

Majority suggested for no change in the policy. It seems they are satisfied with the current policy.

Aligning goal

Respondent

were asked about

the present system,

does

it help

in

aligning individual goal with those of the organisation. The

responses were as given below:

Response

Number

Percentage

Yes

44

45.83

No

12

12.5

Can't say

36

37.5

No response

4

4.16

Here the response from the supervisor were 45.83% for the factor that it help in aligning their goal with those of organisation.

35 response Can't SayNo No Yes 10 15 20 25 30 4 40 45 Series1 36
35
response
Can't SayNo
No
Yes
10
15
20
25
30
4
40
45
Series1
36
0
12
5
44

Career Progress

Career progress is something which is continuous, with the input

from organisation in term of training, feedback and counselling.

In today's changing scenario this has to be followed in every

organisation so that an individual make progress in the career

adding value to himself and the organisation. Respondent were

asked about the current system helping in their career progress.

Career advancement is the most motivating factor when employee

aspire for the advancement of his career and for better

opportunities to use his/her talents. From the organisation's point

of view, it is necessary to develop in manager. Some expectations

of opportunities for the future in order to keep their motivation

high. Career planning means helping the employee plan his career

in terms of his capabilities with the context or organisational needs.

Individual, after becoming aware of some of his/her capabilities and

career and development opportunities chooses to develop

himself/herself in a direction that improves his/her chances of

being able to handle new responsibilities. It is also the responsibility

of the employer to help him/her to identify the career opportunity,

make choices and develop his/her career and provide opportunities

for career planning and succession planning

Question asked was as follows:

Are the issues like career planning and succession planning a part

of companys policy

The responses to the above were as given below:

Response

Number

Percentage

Yes

16

16.66

No

44

45.83

Cant say

36

37.5

Here only 46% of the respondent gave response that it does not

while 38% gave response that there is at all.

no

career development plan

44 0 16 36 50 40 30 20 10 Can't Say Yes No Series1
44
0
16
36
50
40
30
20
10
Can't Say
Yes
No
Series1

Feedback

Providing feedback playa constructive role. It helps the employee

know his/her weakness and strength. Feedback provides for the

area of improvement.

Respondent were asked about the frequency of feedback based on their

performance. The responses were as given below:

Response

Number

Percentage

Rarely

24

25

On a few occasion

40

41.66

Sometimes

24

25

Often

8

8.34

Almost always

Nil

Nil

41 percent responded that feedback is provided though on a few

occasion. The frequency has to increase both from the individual

and organisation point of view to keep the individual motivated for

work in line with the organisational expectation.

40 35 30 25 20 15 10 5 0 RarelyOn a few SometimesOftenAlmost occasionalways
40
35
30
25
20
15
10
5
0
RarelyOn a few SometimesOftenAlmost occasionalways

Remedial measure

Based on the performance the remedial measures are taken to do away with weakness if any and build on the strength and add to the existing capability

Response on the remedial measure were as given

below:

 

Response

Number

Percentage

 

Job rotation

 

44

45.83

Sent to training program

me

40

41.66

Counselled

12

12.5

Any other

Nil

Nil

None

Nil

Nil

Here the response

were

both

for

job

rotation

and

training

programme. During the course it

was felt that more training input

is to be provided to the employee to overcome the weakness and

improve upon the existing capability of the employee.

45 40 35 30 25 20 15 10 5 0 J ob rotation Sentto CounselledAny other
45
40
35
30
25
20
15
10
5
0
J ob rotation Sentto CounselledAny other None training
program

PROMOTION POLICY AND PERFORMANCE APPRAISAL SYSTEM

Respondent were asked whether the promotion policy

is linked

with the performance appraisal

system

The responses were as given

below:

Response

Number

Percentage

Yes

54

56.25

No

28

29.15

Cant say

 

14

14.58

Majority response were that promotion policy is linked with the performance appraisal system.

14 54 0 28 60 50 40 30 20 10 Series1
14
54
0
28
60
50
40
30
20
10
Series1

YesNoCan't Say

SWOT ANALYSIS

STRENGTHS Strong customer oriented and high performance.

Quality products

and

services

and

improved

product

proposition. Strategy oriented and better geographic balances.

Better brand image.

WEAKNESS

Paper compilation of the financial reports (stock

reports).

Inventory management, and procurement

processes.

Lack of feedback.

OPPORTUNITIES

Branch expansion for rapid growth Increase focus on value creation Improve shareholders return

Broadening of the demographic base

Tie up with MNC’ s

Integrated sales and service approach

THREATS

Competitive products and offers. Strong competition.

Chapter 7 CONCLUSIONS & SUGGESTIONS

Chapter 7 CONCLUSIONS & SUGGESTIONS

Conclusion

The analysis and interpretation

of data

on study

of performance

appraisal and its effectiveness in an organization led to

the

following conclusions:

The promotion rule though defined need to be communicated to

every employee before appraisal process is

done and also justify

the promotion as a result of the appraisal. That the promotion

policy followed differs at different position and category. A

uniformity has to be there in the implementation of promotion

policy at all

levels

The process of performance appraisal followed in Vodafone at

the supervisory

and

above

level

IS

to

say

not

good

but

of

satisfactory level. The employees do not rate it very

good

The appraisal

outcome

has

to

be

used

frequently

for

the

purpose of reward on performing well together with

the

feedback

on the performance. Also when performance goes down employee

has to be given feedback and motivated to do better.

The organization at present doesn't lay career planning and

career succession plans.

 

In

Vodafone

feedback

is

being

provided

to

the

employee

though on a few occasion.

 

Performance appraisal in Vodafone is done on an annual

basis.

 

More

emphasis

on

training

and

job

rotation

as

remedial

measures.

 

The mechanism of counseling pre-performance

and

post

performance is not in practice at the organisation

in strict

term.

During. the course of study suggestion came from the employee

side for the need of counselling.

Suggestions

The study undertaken bring some interesting

result.

Training the Appraisee: It is proposed that appraiser be trained

for clear understanding of the system and its objective and also

counselled

to

be

honest,

 

fair,

just,

unbiased

in appraising the

appralsee.

Factors/traits

of

evaluation:

It

is

proposed

that

appraisee

evaluated

on

above

factors/traits

be

given

suitable

remark

or

justification for being given different quantitative

 

grade.

Greater

clarity

 

has

to

be

has

to

there

in

terms

of

job

responsibility. This

is possible when

the

appraisal is done

on the

basis of the description.

In the organization, performance appraisal is done on an annual

basis which should be done Quaterly to make it more effective.

Consistency is demanded in the promotional policy.

It

should

not change every

year.

Monetary difference between two grades should not be large, it

should be motivating in nature.

Performance appraisal system should be made more transparent

and rationale.

Performance feedback: The performance feedback sessions

should be improved which would results in increasing employee

motivation to improve performance. The following could be

incorporated.

Pin

point

the

problem

behaviour

and

make

sure

the

employee is aware of

it

Make sure the employee understands the consequences

of the problem behaviour. Get employee's commitment to

change and make sure he cares about the change

Assistance

should

be

provided

to

improve

poor

performance.

Make

a

realistic

plan

appropriate

to

the

behaviour and set a time frame for

improvement.

To make

sure to review performance time to

time

 

The

other

change

which

has

to

be

incorporated

at

the

supervisor and the level above

are:

These

should

be listing

down

of

task

undertaken

during the last one year and the result

achieved.

 

In

some

areas

of

performance

there

should

be

self

appraisal and more and more counselling

so

that

employee

improve upon weak area and understand what is expected of

him/her at the organization level.

Based

on

the

above

an

open

appraisal

system

is

suggested.

In an open appraisal the employee would come together to set the targets, to

understand the mutual expectations and support to be provided by the

appraiser to the employee for achieving mutually accepted goals/targets.

Through this process of setting targets the interpersonal relationship between

the appraiser and the employee would improve.

The open appraisal

system reduces

the whims and fancies

of the

appraiser. It promotes result-orientation as it is based on

performance rather than on personality based appraisal.

Annexure

  • a) Questionnaire

  • b) Bibliography

QUESTIONNAIRE

TO STUDY PERFORMANCE APPRAISAL SYSTEM

Is the promotional policy well defined in your organization?

a.

Yes

b.

No

c. can' t say

Do you know the objectives of the Performance appraisal If yes kindly specify.

system.

How

often the performance

appraisal

form

is

filled

or

Performance Appraisal is

done.

  • a. fortnightly. b. monthly

c. six-monthly.

d. annually

 
  • e. not fixed.

On what basis is the performance appraisal

done.

  • a. merit cum seniority

b. seniority cum merit.

c.

merit

only

  • d. seniority only.

e. any other. Pl. specify

Q.5 Who appraises you?

  • a. appraisal committee.

b.

your immediate supervisor

  • c. self- appraisal

d.

360 degree appraisal.

  • e. any other please specify

What methods are being used for performance

appraisal

  • a. forced choice distribution method.

b.

essay method

  • c. ranking method.

 

d.

critical

incident

method

  • e. any other, kindly

specify

In your opinion does it identify the training

needs?

  • a. to

a large extent

b. to

some extent

c. cant

say

d.

not

at

all

Is the promotional policy linked with the performance appraisal system

a.

yes

b.

no

c. can' t say

Are the issues like career planning and succession planning a part company' s policy

of

a.

yes

b.

no

c. can' t say.

Q.I0 Does the system help you in aligning your goals with those of the organization.

  • a. yes

b.

no

c.

can' t say

What

role

does

top

management

play

in

the

performance

appraisal. kindly

comment.

Are you a part of the appraisal committee

a.

yes

b.

no

Q 13 . Do the employees get the feedback of performance appraisal

  • a. yes, every time. b.

often, but not

always.

  • c. only when required

  • d. rarely

e.

never

Q.14

Does the organization provide counseling after the appraisal.

a.

always

b. often

c. rarely

d. never.

e. can' t say.

Who does the

counseling

  • a. trained professionals

b. untrained counselors. c. can' t say

Q.16. What kind of remedial measures are

taken.

  • a. job rotation counseled

b. sent to

training programmes

c.

  • d. any other, kindly specify

How do you rate the overall assessment of performance appraisal

a.

Outstanding

b. Very good

c. Good

d. Satisfactory

e. Poor

What do you feel are the positives in the performance appraisal system in

your organization, Kindly

mention

Q.19 What do you feel are the

shortcomings

of

the performance appraisal system

being followed in your organization, Kindly mention

For how long have you been working in this

organisation

Suggestion towards improving the performance appraisal system your organisation

in

BIBLOGRAPHY

1)

Flippo EdwinB., Personnel management, Edition sixth, Tata Mc

Graw Hills, 1984, p.g. 225-230

 

2)

Gupta,

C.B.,

Human

Resource

Management,

Edition

Fifth(Reprint),Sultan Chand and Sons, New Delhi 2006, P.G. 5.3-

5.10

3)

Rao,

P.

Subba,Essentials

of

Human

Resource

Management

and

Industrial Relations;Edition Second, Himalaya Publishing House,

NewDelhi2005,

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