Project on Performance

appraisal of emplyees in
BSNL telecommunication.

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 PERFORMANCE APPRAISAL

INTRODUCTION:

Performance Appraisal is the systematic evaluation of the performance of employees

and to understand the abilities of a person for further growth and development.
Performance appraisal is generally done in systematic ways which are as follows:

1. The supervisors measure the pay of employees and compare it with targets and
plans.
2. The supervisor analyses the factors behind work performances of employees.
3. The employers are in position to guide the employees for a better performance

Once the employee has been selected, trained and motivated, he is

then appraised for his performance. Performance Appraisal is the step where the
Management finds out how effective it has been at hiring and placing employees.
If any problems are identified, steps are taken to communicate with the employee
and remedy them. Performance Appraisal is a process of evaluating an employee s
performance in terms of its requirements. Performance Appraisal can also be
defined as the process of evaluating the performance and qualifications of the
employees in terms of the requirements of the job for which he is employed, for
purposes of administration including placement, selection for promotions,
providing financial rewards and other actions which require differential treatment
among the members of a group as distinguished from actions affecting all
members equally.

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 INTRODUCTION TO BSNL

TYPE COMMUNICATION SERVICE PROVIDER

AVAILABILITY COUNTRYWIDE

OWNER GOVERNMENT OF INDIA

KEY PEOPLE CHAIRMAN & DIRECTOR-RAJESH

KUMAR UPADHYAY

FOUNDED 19TH CENTURY, INCORPORATED IN

2000

WEBSITE WWW.BSNL.IN

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 COMPANY PROFILE

 Overview of BSNL

BSNL is India’s oldest and largest communication Service

Provider. Currently BSNL has a customer base of 64.8 million (basic and mobile
telephony). It has footprints throughout India except for the metropolitan cities of
Mumbai and New Delhi which are managed by MTNL. As on March 31, 2007 BSNL
commanded a customer base of 33.7million wire line, 3.6 million CDMA-WILL and
27.5 million GSM mobile subscribers. BSNL’s earnings for the Financial Year ending
March 31, 2006 stood at INR 401.8b(US$9.09 billion) with net profit of INR 89.4b
(US$ 2.02 billion)

 History:

The foundation of Telecom Network in India was laid by the British

sometime in 19th century. The history of BSNL is linked with the beginning of
Telecom in India. In 19thcentury and for almost entire 20thcentury, the Telecom in
India was operated as a Government of India wing. Earlier it was part of erstwhile
post and Telegraph Department (P&T). In 1975 the Department of Telecom (DoT)
was separated from P&T. DoT was responsible for running of Telecom services in
entire country until 1985 when Mahanagar Telephone Nigam Limited(MTNL) was
carved out of DoT to run the telecom services of Delhi and Mumbai. It is a well
known fact that BSNL was carve dout of Department of Telecom to provide level
playing field to private telecoms. Subsequently in 1990s the telecom sector was
opened up by the Government for Private Investment, therefore it became necessary
to separate the Government’s policy wing from Operations wing. The Government of
India corporatized the operations wing of DoT on October 01, 2000 and named it as
Bharat Sanchar Nigam Limited (BSNL).BSNL operates as a public sector.

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Main services being provided by BSNL:
BSNL provides almost every telecom service, however following are the
main Telecom services being provided by BSNL in India:-

 UNIVERSAL TELECOM SERVICES:

Fixed wire line services and wireless in Local Loop (WLL) using CDMA
Technology called bfone and Tarang respectively BSNL is dominant operator in fixed
line. As on March 31,2007(end of financial year) BSNL had 76% share of fixed and
WLL phones .BSNL MOBILE- CELL ONE, PRE-PAID-EXCEL

 CELLULAR MOBILE TELEPHONE SERVICES:

BSNL is major provider of Cellular Mobile Telephone Services using
GSM platform under brand name Cell one. Pre-paid Cellular Services of BSNL are
know as Excel. As on March 31, 2007 BSNL had 17%share of mobile telephony in
the country.

INTERNET:
BSNL is providing internet as dial-up connection (sancharnet)and ADSL- Broad band
Data one. BSNL has around 50% market share inbroadband in India. BSNL has
planned aggressive rollout in broadband forcurrent financial year.

INTELLIGENT NETWORK:
BSNL is providing IN services like Tele-voting, toll free calling, premium calling etc.

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 BSNL present and future:

Since its corporation in October 2000, BSNL has been actively

providing Connections in both urban and rural areas and the efficiency of the
company has drastically improved from the days when one had to wait for years to get
a phone connection to now when one can get a connection in even hours. Pre-
activated mobile connections are available at many places across India. BSNL has
also unveiled very cost effective Broadband internet access plans (Data One) targeted
at homes and small businesses. At present BSNL enjoys 47% of market share of ISP
services.

Year of broadband 2007- BSNL

Former Indian Communications Minister Thiru Dayanidhi Maran had

declared year2007 as “Year of Broadband” in India and BSNL is gearing up to
provide 5 million Broadband connectivity by the end of 2007. BSNL has upgraded
existing Data one (Broadband) connections for a speed of up to 2 Mbit/s without any
extra cost. This2Mbit/s broadband service is being provided by BSNL at a cost of just
US$ 5.5 per month. Further, BSNL is planning to upgrade its broadband services to
Triple play(Telecommunications) in 2007.BSNL has been asked to add 108 million
customers by 2010 by Former Indian Communications Sector in India, the target
appears achievable, however due to intense competition in Indian Telecom sector in
recent past BSNL’s growth has slowed down. BSNL is pioneer of Rural Telephony in
India. BSNL has recently bagged 80% of US$580m (INR 2,500 crores) Rural
Telephony project of Government of India.

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 Challenges
During Financial year 2007-2008(From April 01, 2006 to March 31, 2007) BSNL has
added 9.6 Million new customers in various telephone services taking its customer
base to 64.8 Million. BSNL’s nearest competitor Bharti Airtel is standing at a
customer base of 39 Million. However, despite impressive growth shown by BSNL in
recent times, the fixed line customer base of BSNL is declining. In order to woo
back its fixed-line customers BSNL has brought down long distance calling rate under
One India plan, however, the success of the scheme is not known. However, BSNL
faces bleak fiscal 2006-2007 as users flee, which has been accepted by the CMD
BSNL. Presently there is an intense competition in Indian Telecom Sector and various
Telco’s are rolling out attractive schemes and are providing good customer services.
However, BSNL being legacy operator and its conversion from a Government
Department earns lot of criticism for its poor customer service. Although in recent
past there have been tremendous improvement in working of BSNL but still it is much
below the Industry’s Expectations. A large
aging (average age 49 years )workforce (300,000 strong)), which is mostly
semiliterate or illiterate is the main reason for the poor customer service. Further, the
Top management of BSNL is still working in BSNL on deputation basis holding
Government employee status thus having little commitment to the organization.
Although in coming years the retirement profile of the workforce is very fast and
around 25% of existing workforce will retire by 2010, however, still the workforce
will also remain an issue. Access Deficit Charges (ADC, a levy being paid by the
private operators to BSNL for provide service in non-lucrative areas especially rural
areas) has been slashed by 37%by TRAI, w. e. f. April 01, 2007. The reduction in
ADC may hit the bottom-line of BSNL.

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Vision:
 To become the largest telecom service provider.

Mission:
 To provide world class State-of-art technology telecom services to its
customer on demand at competitive prices.

 To provide world class telecom infrastructure in its area of operate in and to

contribute to the growth.

Objective:
MP Telecom looks over the management, control and operation of the
telecom network with the following aims and objective:
 To build a high degree of customer confidence by sustaining quality
and reliability in service.
 To upgrade the quality of telecom service to international level.
 Provision of telephone connections on demand in all the villages of
M.P.
 Expansion of new services like Internet, Intelligent Network, ISDN,
Internet , Telephony, Video Conferencing, Broadband etc.
 Popularize Broadband services and to be on-demand in the whole
state.
 Expansion of Cellular Mobile Telephone to all towns.
 To open Internet Kiosks (café’s) at all Block Head Quarters.
 To improve the quality of present services being given to the
subscribers.
 To open more Customer Service Centres and upgrade the existing
customer service centres for better and friendly customer care.
 Modernize PSTN network by making RSUs & AN-RAX.
 Plantation of Trees to make environment Clean & Green.
 To raise necessary financial resources for its developmental needs.

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 To increase accessibility of services, by providing a large number of
Local andNSD/ISD Public Call Offices (PCOs) so as to reach out to
the masses.

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Products:

 BSNL LANDLINE:
o BSNL MOBILE
 POSTPAID
 PREPAID
 UNIFIED MESSAGING
 GPRS/WAP/MMS
 DEMOs
 TARIFF
o BSNL WLL
o INTERNET SERVICES
 NETWORK
 BROADBAND
 WI-FI
 CO-LOCATION SERVICE
 BSNL WEB HOSTING
 DIAL UP INTERNET
 SMS & BULK SMS
o BSNL BROADBAND
o BSNL MANAGED NETWORK SERVICES
o BSNL MPLS-VPN
o ISDN
o INTELLIGENT NETWORK
 FREE PHONE SERVICE
 PREM
 INDIA TELEPHONE CARD
 VIRTUAL PRI
 VOICE VPN
 UNIVERSAL NUMBER
 UNIVERSAL PERSONAL NUMBER
 TELE VOTING
o VIDEO CONFERENCING

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 o AUDIO CONFERENCING
o TELEX/ TELEGRAPH
o EPABX
 EPABX
 FREE EPABX
 CENTREX
o HVNET
o INMARSAT
o TRANSPONDER

Thus, these are the various products offered by BSNL to their valued customers
according to their requirements. Today, BSNL is India’s largest Telecom and one of
the largest public sectors undertaking of the country with authorized share capital of
US$ 3.95 billion (INR17,500 Crores) and net worth of US$ 14.32 billion

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 OBJECTIVES OF THE STUDY

 To find out the satisfaction level for the Performance Appraisal system in the
BSNL (Bharat Sanchar Nigam Limited).
 To get suggestions from the employees for further improvement in existing
performance appraisal system.
 To contribute to the growth of the organization
 To measure the subjectivity and objectivity, which influence the existing
Performance appraisal system and remove the subjectivity and to increase the
objective

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 Definition:
Performance Appraisal is defined as a systematic process, in which the
personality and performance of an employee is assessed by the supervisor or manager,
against predefined standards, such as knowledge of the job, quality and quantity of
output, leadership abilities, attitude towards work, attendance, cooperation, judgment,
versatility, health, initiative and so forth.

It is also known as performance rating, performance evaluation, employee

assessment, performance review, merit rating, etc.

Performance Appraisal is carried out to identify the abilities and competencies of an

employee for future growth and development. It is aimed at ascertaining the worth of
the employee to the organization, in which he/she works.

Relationships of performance Appraisal and job analysis

Performance Appraisal relates to job analysis, in the sense that job analysis
establishes job requirement, which converts the analysis into standard, on which
performance is judged, and results in defining the basis for performance appraisal.

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Objectives of Performance Appraisal

 To promote the employees, on the basis of performance and competence.

 To identify the requirement for training and development of employees.

 To provide confirmation to those employees who are hired as probationary

employees, upon completion of the term.

 To take a decision regarding the hike in employees pay, incentives etc.

 To facilitate communication between superior and subordinate.

 To help employees in understanding where they stand in terms of performance.

Data obtained from the appraisal of performance, are documented and used for
different organizational purposes.

Performance Appraisal process

The figure shown above is a standard performance appraisal process that takes place
in an organization, wherein each step is important and arranged in a systematic
manner. The process is conducted periodically, usually twice a year, i.e. semi-
annually and annually called as mid-term review and annual review respectively.

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 Methods of Performance Appraisal

In the process of designing performance appraisal process, it is important to identify

the best method for assessment. There are a number of methods introduced to gauge
the quantity and quality of work performed by an individual. These methods are
broadly classified into two categories:

 Past-oriented Methods (Also known as Traditional Methods of Performance

Appraisal)

 Rating Scales

 Checklists

 Forced Choice

 Forced Distribution

 Critical Incident

 Performance test and observation

 Field review

 Confidential Record

 Essay method

 Comparative Evaluation Approaches

 Cost Accounting Method

 Behaviorally Anchored Rating Scales

 Future Oriented Methods (Also known as Modern Methods of
Performance Appraisal)
 Management by objectives
 Psychological Appraisal
 Assessment Centres
 360-Degree Feedback
 720-Degree Feedback
Performance Appraisal is a part of performance management. It helps in gaining the
competitive edge, by improving the performance level of the employees working in
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the organization, making rational decisions regarding hike in salaries, promotions,
transfers, discharge of the employees, reducing job dissatisfaction and employee
turnover

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IMPORTANCE AND
PURPOSE OF
PERFORMANCE
APPRAISAL

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 Importance and Purpose:

Performance Appraisal has been considered as the most significant an

indispensable tool for an organization, for an organization, for the information it
provides is highly useful in making decisions regarding various personnel aspects
such as promotion and merit increases. Performance measures also link information
gathering and decision making processes which provide a basis for judging the
effectiveness of personnel sub-divisions such as recruiting, selection, training and
compensation. Accurate information plays a vital role in the organization as a whole.
They help in finding out the weaknesses in the primary areas. Formal Performance
Appraisal plans are designed to meet three needs, one of the organization and the
other two of the individual namely: o They provide systematic judgments to back up
salary increases, transfers, demotions or terminations. o They are the means of telling
a subordinate how he is doing and suggesting needed changes in his behavior,
attitudes, skills or job knowledge. They let him know where he stands with the Boss.
o Superior uses them as a base for coaching and counseling the individual. On the
basis of merit rating or appraisal procedures, the main objectives of Employee
Appraisal are:

To enable an organization to maintain an inventory of the number and quality of all

managers and to identify and meet their training needs and aspirations. o To
determine increment rewards and to provide reliable index for promotions and
transfers to positions of greater responsibility. o To suggest ways of improving the
employee s performance when he is not found to be up to the mark during the review
period.

To identify training and development needs and to evaluate effectiveness of training

and development programmes To plan career development, human resource planning
based potentials.

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 PERFORMANCE
APPRAISAL
STRUCTURE IN THE
ORGANIZATION

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 Summary of the Performance Analysis

System Setting performance standards, observing and providing feedback,

and conducting appraisals enables the Team Leader to achieve the best results through
managing employee performance.

To begin the process, the Team Leader and the employee collaborates on the
development of performance standards. The Team Leader then develops a
performance plan that directs the employee's efforts toward achieving specific results,
to support organizational growth as well as the employee's professional growth.
Discussion of goals and objectives throughout the year provides a framework to
ensure that employees achieve results through One on One and mutual feedback.

At the end of the rating period, the Team Leader appraises the employee's
performance against existing standards, and establishes new goals together for the
next rating period. As the immediate supervisor, the Team Leader plays an important
role; his closest interaction with the employee occurs at this level. There are four key
elements in the appraisal system:

1. Set objectives - Decide what the Team Leader wants from the employees and agree
these objectives with them.

2. Manage performance - Give employees the tools, resources and training they need
to perform well.

3. Carry out the appraisal - monitor and assess the employees' performance, discuss
those assessments with them and agree on future objectives.

4. Provide rewards/remedies - Consider pay awards and/or promotion based on the

appraisal and decide how to tackle poor performance.

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 Performance Standards

How does the Team Leader decide what's acceptable and what's unacceptable
performance? The answer to this question is the first step in establishing written
standards.

Performance expectations are the basis for appraising employee performance. Written
performance standards let the Team Leader to compare the employee's performance
with mutually understood expectations and minimize ambiguity in providing
feedback.

Having performance standards is not a new concept; standards exist whether or not
they are discussed or put in writing. When the Team Leader observes an employee's
performance, he usually makes a judgment about whether that performance is
acceptable. Standards identify a baseline for measuring performance. From
performance standards, the Team Leader can provide specific feedback describing the
gap between expected and actual performance.

Guiding Principles

Effective performance standards:

 Serve as an objective basis for communicating about performance.

 Enables the employee to differentiate between acceptable and unacceptable

results.

 Increase job satisfaction because employees know when tasks are performed
well.

 Inform new employees of your expectations about job performance.

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Key Responsibility Areas (KRA)

The Team Leaders in association with the Project Manager write performance
standards for each key area of responsibility on the employee's job description.

The employee actively participates in its development. Standards are usually

established when an assignment is made, and they are reviewed if the employee's job
description is updated.

The discussions of standards include the criteria for achieving satisfactory

performance and the proof of performance (methods the Team Leader will use to
gather information about work performance)

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Characteristics of Performance Standards

 Standards describe the conditions that must exist before the performance can
be rated satisfactory. A performance standard should:

 Be realistic, in other words, attainable by any qualified, competent, and fully

trained person who has the authority and resources to achieve the desired
result

 Describe the conditions that exist when performance meets expectations

 Be expressed in terms of quantity, quality, time, cost, effect, manner of

performance, or method of doing

 Be measurable, with specified method(s) of gathering performance data and

measuring performance against standards

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 Expressing Standards

The terms for expressing performance standards are outlined below:

 Quantity: Specifies how much work must be completed within a certain

period of time.

 Quality: Describes how well the work must be accomplished. Specifies

accuracy, precision, appearance, or effectiveness.

 Timeliness: Answers the questions, by when? , How soon? , Or within what

period?

 Effective Use of Resources: Used when performance can be assessed in terms

of utilization of resources: money saved, waste reduced.

 Effects of Effort: Addresses the ultimate effect to be obtained; expands

statements of effectiveness by using phrases such as: so that, in order to, or as
shown by.

 Manner of Performance: Describes conditions in which an individual's

personal behavior has an effect on performance, e.g., assists other employees
in the work unit in accomplishing assignments.

 Method of Performing Assignments: Describes requirements; used when

only the officially prescribed policy, procedure, or rule for accomplishing the
work is acceptable

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 Performance Measurements

Since one of the characteristics of a performance standard is that it can be

measured, the Team Leader identifies how and where evidence about the
employee's performance will be gathered. Specifying the performance
measurements when the responsibility is assigned will help the employee keep
track of his progress, as well as helping the Team Leader in the future
performance discussions.

There are many effective ways to monitor and verify performance, the most
common of which are:

 Direct observation

 Specific work results (tangible evidence that can be reviewed without the
employee being present)

 Reports and records, such as attendance, safety, inventory, financial records,

etc.

 Commendations or constructive or critical comments received about the

employee's work.

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 Observation and Feedback (One on One)

Once performance objectives and standards are established, the Team Leader
observes the employees' performance and provides feedback. The Team
Leader has a responsibility to recognize and reinforce strong performance by
an employee, and identify and encourage improvement where it is needed. The
Team Leader provides informal feedback almost every day.

By observing and providing detailed feedback, the Team Leader plays a

critical role in the employee's continued success and motivation to meet
performance expectations.

One On One Sessions

One on One is a method of strengthening communication between the Team

Leader and the employee. It helps to shape performance and increase the
likelihood that the employee's results will meet expectations. One on One
sessions provide the Team Leader and the employee the opportunity to discuss
her progress toward meeting mutually established standards and goals. A One
on One session focuses on one or two aspects of performance, rather than the
total review that takes place in a performance evaluation.

Guiding Principles

Effective One on One can:

 Strengthen communication between the Team Leader and the employee

 Help the employee attain performance objectives

 Increase employee motivation and commitment

 Maintain and increase the employee's self-esteem Provide support

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 Key Elements of One on One

To make One on One sessions effective, the Team Leader keeps the following
key elements of One on One in mind while conducting such a session:

 Observe the employee's work and solicit feedback from others.

 When performance is successful, take the time to understand why.

 Advise the employee ahead of time on issues to be discussed.

 Discuss alternative solutions.

 Agree on action to be taken.

 Schedule follow-up meeting(s) to measure results.

 Recognize successes and improvements.

 Document key elements of One on One session.

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 Questions to Consider during One on One

To provide effective feedback the Team Leader must understand the elements of
performance and analyze marginal performance. These questions are kept in mind:

 How is the employee expected to perform?

 Does the employee understand these expectations? If not, why not?

 Does the employee know what successful results look like? How does the
Team Leader know?

 Does the employee know the performance is marginal? How does the Team
Leader know?

 Are there obstacles beyond the employee's control? Can the Team Leader
remove them?

 Has the employee ever performed this task satisfactorily?

 Is the employee willing and able to learn?

 Does satisfactory performance result in excessive work being assigned?

 Does unsatisfactory performance result in positive consequences such as an

undesirable task being reassigned?

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 During the One on One Session
When the Team Leader conducts a One on One session to provide positive feedback
to the employee, he keeps the following points in mind:
 Describe the positive performance result or work habit using specific details.
 Ask the employee's opinion of the same product or behavior.
 Ask the employee to identify elements that contributed to success (adequate
time or resources, support from management or other employees, the
employee's talent and interest in the project).
 Discuss ways in which the Team Leader and the employee can support
continued positive results.
 Reinforce for the employee the value of the work and how it fits in with the
goals of the work unit or department.
 Show your appreciation of the positive results and your confidence that the
employee will continue to perform satisfactorily.
 If appropriate, document your discussion for the employee's file.
When the Team Leader conducts a One on One session to improve performance, he
uses the following format:
 Describe the issue or problem, referring to specific behaviors.
 Involve the employee in the problem-solving process.
 Discuss causes of the problem.
 Identify and write down possible solutions.
 Decide on specific actions to be taken by each of the Team Leader.
 Agree on a follow-up date.
 Document key elements of the session.

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 Follow-Up Discussion

During a follow-up discussion, the following steps are followed:

 Review the previous discussion(s).

 Discuss insufficient improvement and ask for reasons why.

 Indicate consequence of continued lack of improvement.

 Agree on action to be taken and set a follow-up date, if appropriate.

 Convey confidence in the employee.

 Document the discussion.

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Meaning of 360 Degree Appraisal

An appraisal made by top management, immediate superior,

peers, subordinates, self and customers is called 360 Degree Appraisal. Here, the
performance of the employee or manager is evaluated by six parties, including
himself. So, he gets a feedback of his performance from everyone around him. This
method is very reliable because evaluation is done by many different parties. These
parties are in the best position to evaluate the employee or manager because they are
continuously interacting and working with him. This method is mostly used to
evaluate the performance of the employees. However, it is also used to evaluate other
qualities such as talents, behaviour, values, ethical standards, tempers, loyalty, etc.

360 degree appraisal was first developed by General Electric (GE), USA in 1992.
Today it is used by all major organisations. In India, it is used by Crompton Greaves,
Wipro, Infosys, Reliance Industries, etc.

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Six Parties In 360 Degree Appraisal

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The six parties involved in 360 degree appraisal are :-

1. Top Management

The top management normally evaluates the middle level managers. However, in a
small organisation, they also evaluate the performance of the lower level managers
and senior employees.

2. Immediate Superior

The immediate superior is in a very good position to evaluate the performance of his
subordinates. This is because they have direct and accurate information about the
work performance of their subordinates.

3. Peers / Co-workers

Peer or colleagues also evaluate each other's performance. They work continuously
with each other, and they know each other's performance. Peer evaluation is used
mostly in cases where team work is important.

4. Subordinates

The Subordinates can also evaluate the performance of his superior. Now-a-days
students are asked to evaluate the performance of their teachers.

5. Self Appraisal

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In the self-appraisal, a person evaluates his own performance. He should be honest
while evaluating himself. This results in self-development.

6. Customers

Customers can also evaluate the performance of the employees who interacts with
them. This evaluation is best because it is objective. It is also given a lot of
importance because the customer is the most important person for the business.
Organisations use customer appraisals to improve the strengths and remove the
weaknesses of their employees.

In addition to these six parties, appraisal can also be done by an Appraisal Panel. This
panel consists of 5 to 6 different types of members. Outside Consultants are also used
for conducting appraisals. In some cases, Personnel Department also conducts an
appraisal of employees and managers.

360 Degree Appraisal is becoming more popular because many parties are available
for evaluation. Therefore, there is no "bias" or "halo effect". Hence the evaluation
will become more realistic.

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The post appraisal interview

This interview provides the employees the feedback information, and an opportunities
to the appraiser to employee his rating, the trail and behaviour he has taken into
consideration etc.

Further it helps both the parties to review standards based on the reality factors and
helps the appraisal to offer his suggestion, help , guide and coach the employee for his
advancement.

Thus, the post appraisal interview is designed to achieve the following objectives.

To let employee know where stand

To help employee do better job by clarifying what is expected of them

To plan opportunities for development and growth

To provide an opportunities for empolyee to express themselves on performance

related issue.

Thus, Post appraisal interview is most helpful to the employee as well as his superior.

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ADVANTAGES OF 360 DEGREE APPRAISAL

1. Offer a more comprehensive view towards the performance of employees.

2. Improve credibility of performance appraisal.
3. Such colleague’s feedback will help strengthen self-development.
4. Increases responsibilities of employees to their customers.
5. The mix of ideas can give a more accurate assessment.
6. Opinions gathered from lots of staff are sure to be more persuasive.
7. Not only manager should make assessments on its staff performance but other
colleagues should do, too.
8. People who undervalue themselves are often motivated by feedback from others.
9. If more staff takes part in the process of performance appraisal, the organizational
culture of the company will become more honest.

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DISADVANTAGES OF 360 DEGREE APPRAISAL

1. Taking a lot of time, and being complex in administration

2. Extension of exchange feedback can cause troubles and tensions to several staff.
3. There is requirement for training and important effort in order to achieve efficient
working.
4. It will be very hard to figure out the results.
5. Feedback can be useless if it is not carefully and smoothly dealt.
6. Can impose an environment of suspicion if the information is not openly and
honestly managed.

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 SWOT ANALYSIS

A performance evaluation is a formal review of an individual employee's job

performance over a specific time period. Performance evaluations measure such
things as efficiency, increases in productivity, and progress toward departmental and
individual goals. A SWOT analysis analysis the strengths, weaknesses, opportunities
and threats associated with a given topic.

STRENGTHS

Performance evaluations can provide meaningful feedback to employees to help them

better themselves professionally and personally. Managers and employees who use
the evaluation process to set performance goals can steadily increase job performance
and overall human resources productivity over time. Making personal development a
priority in your human resources department can help garner deeper loyalty in your
workforce, as well. Evaluating individual and group performance can also help ensure
that pay raises and other incentives are distributed equitably to high performers, rather
than being based on politics, nepotism or simply length of service.

WEAKNESSES

Performance evaluations must be performed by people, which always leaves room for
human error. Using people to judge and assess other people brings a range of
challenges to the table, such as political influences, emotional influences and
interpersonal issues. Even when managers truly wish to act unbiased in evaluations,
human handicaps, such as the propensity to place more emphasis on recent events
than events further in the past, can dampen the equity of a review. Companies can
counteract the human element of the process by requiring managers to keep records
and attach them to reviews to back up their results. Soliciting feedback from more
than one person in evaluations can also help keep evaluations fair by reducing
personal influences on final results.

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OPPORTUNITIES

Records-based performance evaluations can help companies identify rising stars in

their ranks, allowing them to choose the hardest working, most dedicated and most
skilled employees to place on advancement tracks or even groom for executive
leadership. Evaluations also grant companies the opportunity to continually reduce
costs by improving efficiency in operations.

THREATS

Performance evaluation weaknesses can introduce threats to the process. If employees

feel they're being treated unfairly in an evaluation, especially when pay raises and
incentives are on the line, they can become extremely dissatisfied. An inaccurate
performance review system can cause high performers to leave the organization, or it
can spread discontent throughout the informal communications network of the
company.

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