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Research Project Report

Study and Evaluation of Performance Management

System and Employee Engagement Activities at
Bharti Airtel


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1. Introduction…………………………………………………………………..…. 8 - 13
1.1 Introduction
1.2 Performance Appraisal
1.3 Recruitment Process

2. Company Profile……………………………...……………………………….. 14 - 21
2.1 Company Profile
2.2 Vision & Promise
2.3 Organizational Structure
2.4 Key Facts
2.5 Fact Sheets
2.6 Corporate Social Responsibility
2.7 Employees

3. Objective of the Study……………………………………………………….… 22 - 23

3.1 Objective of the Study

4. Hypothesis of the Study…………………………………………………….….. 24 - 25

4.1 Hypothesis of the Study

5. Theoretical Perspective…………………………………………………..……. 26 - 36
5.1 Theoretical Perspective
5.2 Evolution of Performance Appraisal in India

6. Methodology & Procedure of Work……………………………………..…… 37 - 42

6.1 Research Design & Survey Design
6.2 Sampling Method
6.3 Data Analysis

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6.4 Research Methodology
6.5 Research Design

7. Analysis / Interpretation of Data………………………………………...……. 43 - 58

7.1 Data Analysis

8. Findings & Recommendations…………………………………………….….. 59 - 62

8.1 Findings
8.2 Recommendations

9. Conclusions…………………………………………………………………….. 63 - 65
9.1 Conclusions


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Bharti Airtel Limited is India’s largest integrated and the first private telecom services provider
with a footprint in all the 23 telecom circles. Bharti Airtel since its inception has been at the
forefront of technology and has steered the course of the telecom sector in the country with its
world class products and services. The company has been building supply chain of talented
workforce through in-sourcing large number of employees with Airtel’s channel partners and
associates, by establishing and implementing objective recruitment tools such as conducting
on-line tests based on psychometric profile, aptitude and skills assessment and lastly by
conducting competency mapping of every role holder.

The Employee Engagement and Development programmes of the company involve Offering
‘Study while Work’ programmes, Setting benchmarks in employee reward and recognition,
implementing employee friendly HR policies, interacting with employees through open houses,
employee forums and helplines etc. The present study was limited to evaluating the
effectiveness of the Recruitment Process at Bharti Airtel.

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Performance appraisal is the process of obtaining, analysing and recording information about
the relative worth of an employee. The focus of the performance appraisal is measuring and
improving the actual performance of the employee and also the future potential of the
employee. Its aim is to measure what an employee does.

According to Flippo, a prominent personality in the field of Human resources, “performance

appraisal is the systematic, periodic and an impartial rating of an employee’s excellence in the
matters pertaining to his present job and his potential for a better job." Performance appraisal
is a systematic way of reviewing and assessing the performance of an employee during a given
period of time and planning for his future.

It is a powerful tool to calibrate, refine and reward the performance of the employee. It helps
to analyse his achievements and evaluate his contribution towards the achievements of the
overall organizational goals. By focusing the attention on performance, performance appraisal
goes to the heart of personnel management and reflects the management’s interest in the
progress of the employees.


While on the job, performance reviews of every employee are done every quarter. The reviews
are done with a view to helping the individual excel at his/her workplace. In case there are any
training requirements, these are noted and acted upon in the coming quarter. Also, the goals
and objectives for the employee are re-visited for. The performance appraisal mechanism is
carried out at Bharti Airtel for promotional purposes. These are done so as to motivate the
employee and improve his performance level. The method is as follows:
 Establishment of performance standards with the employees
 The goals are set mutually as per measurable standards.
 The actual performance is hence measured.
 After measuring of the actual performance, the same is compared with the standards set
at the various Bharti Airtel Branches.
 The appraisal is then discussed with the employees.
 And finally, if need arises corrective action is initiated. For this purpose the corrective
action is actually identified through brainstorming exercises initiated by the

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departmental heads at all the Bharti Airtel Branches. It is then measured as a tool to
evaluate the past performances of the employees.

KPI – Key Performance Index

It is based on the performance level of the employee generally classified on the basis of:
 Targets achieved
 Ratings through students’ feedback forms
 Punctuality and regularity
 Day to day performance
This is given after every module at the branches. Thus we can observe that the appraisal system
is not a biased one but based on performance and productivity basis. All the respective heads
of the employee together with the senior persons at the branch brainstorm and then give the

360 Degree Feedback

This feedback system involves the participation of:
 Co-workers – 40%
 Subordinates - 20%
 Superior - 40%
Thus the feedback given by these members at Bharti Airtel is considered under a holistic view
and then the employee is given a performance appraisal. This evaluation method involves 40%
feedback from the co-workers which says that the employee should not only maintain good
rapport with the senior or junior but majorly with the co-workers also.

Paired Comparisons
The evaluator compares all possible pairs of subordinates on their overall ability to do the job.
Due to the subjectivity of evaluating overall performance some managers me e a number of
different job related dimensions when comparing.

Behaviourally Anchored Rating Scale (BARS)

It is a sophisticated method of evaluating the employee based on the employee behavior. It is
a numerical scale that is anchored by the seniors of the organization at various centers. This is
highly confidential and the information is sent in sealed envelopes and opened only at the time

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of the final evaluation. There is no further discussion regarding this scaling, thus it is not given
enough weightage.


The Recruitment process at Bharti Airtel is classified into broad categories of recruits: Regular
recruits and Campus Recruits. Regular recruits are all non-trainees i.e. all those who join as
probationers, and do not include trainees. Recruitment concerns with the persons of attracting
qualified and competent personnel for different jobs.

It concerns with the development of selection policies and procedure and the evaluation of
Potential employees in terms of job specifications.
 The Recruitment and Selection Policy is documented as an approved policy.
 The Placement in Grade A and above will be mainly through qualified internal
resources. External sourcing will be done in case the Management fails to source the
candidate internally. The responsibility for recruitment of employees in the
management cadre will be that of corporate HR, with subsequent approval of the
Business Head.
 After selecting the candidate, the process is as follows:
1. Forms to be sent to Corporate HR:
 Application form with qualification, age proof, experience certificate
 Interview Record form (with approval/signatures of relevant people)
 Job Description form
 Person Specification form
2. Letter of Offer (mentioning the taxable salary and the position being offered)
will released by Corporate. HR within 7 days of receipt of above.
3. Letter of Offer to be handed over by Unit Head only if Medical Report is clear
4. After Letter of Offer is handed over, the following paper need to be sent to
Corporate HR:
 Medical Report
 Joining Report with joining date (1st or 15th, Subsequent to date of
Letter of Offer)
 Copy of Letter of Offer signed and acknowledged by the new employee

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5. Letter of Probation will be released within 10 days.
 Subsequent to joining, the Finance Head (for Units) or Corporate HR (for Corporate
Office) should have the PF nomination from, ESI nomination form, ESI declaration
from and Gratuity nomination form filled up by the new employee.
The ESI form should be submitted to the relevant au form should be submitted
to the relevant authorities within 10 days of joining.
The PF nomination form should be submitted for all new entrants in a month by
the 25th of the next month with the monthly returns.
The Gratuity form to be sent to Corporate HR within 7 days of joining.
Corporate HR to submit the forms accumulated in a month in the beginning of
next month.
 Letters of Appointment will be issued by the Managing Director subject to medical
 Individuals will be entitled to reimbursement of fares, professional packing changes
and freight expenses (limits as mentioned in section. ‘Transfer and Disturbance
Expenses’) for reporting to their initial place of posting, in case they joint at some other

Probation & Confirmation

 All individuals appointed in Grade B and C will undergo a period of probation of six
months. There would be no probation period for individuals joining after in Grade.
 On completion of probation period, an appraisal of performance will be conducted for
considering confirmation in the services of the Company. Post joining, the completed
Confirmation Appraisal Form of an individual should reach Corporate HR a week prior
to the due date of the confirmation. It is the responsibility of the Manager conducting
the confirmation appraisal to ensure the same. The Confirmation Appraisal Form
should be routed through the Vice President/General Manager
 The letter of Probation/Conformation will be issued by the Managing Director or any
person authorised for the same. The letter will be handed over by the Unit Head with a
copy to the Head of Finance of the Unit. The copy signed by the individual will be sent
to Corporate HR for keeping in the personnel file.
 Extension of probation, if any, will require clearance from the Vice-President/Group
Head for Grade B and C. The Manager conducting the appraisal will communicate the

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reasons for extension of probation in the Confirmation Appraisal Form. Once agreed
upon by the authorized body, it will be communicated in writing by Corporate HR to
the individual concerned. This would be handed over by the Unite Head.

Appraisal & Increments

 The appraisal process has been developed and designed so as to allow a formal forum
for discussing performance of an individual and provide feedback to improve the same
and allow for enhancing the career of the individual in Bharti Airtel
 The appraisal exercise will take place in February each year. All individual confirmed
as on 30th September, and those who have joined between 1st April and 1st October
are invited to participate in the annual appraisal exercise for that financial year. The
performance appraisal for an individual is done for the financial year or for the time the
individual has been with in the system.
 The reward system in BHARTI AIRTEL is based on meritocracy. The annual appraisal
exercise is one of them. Based on the findings through all these exercise, individuals
will be given increments.

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Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises. The Bharti Group
has a diverse business portfolio and has created global brands in the telecommunication sector.
Bharti has recently forayed into retail business as Bharti Retail Pvt. Ltd. under a MoU with
Wal-Mart for the cash & carry business. It has successfully launched an international venture
with EL Rothschild Group to export fresh agro products exclusively to markets in Europe and
USA and has launched Bharti AXA Life Insurance Company Ltd under a joint venture with
AXA, world leader in financial protection and wealth management.

Airtel comes to you from Bharti Airtel Limited, India’s largest integrated and the first private
telecom services provider with a footprint in all the 23 telecom circles. Bharti Airtel since its
inception has been at the forefront of technology and has steered the course of the telecom
sector in the country with its world class products and services. The businesses at Bharti Airtel
have been structured into three individual strategic business units (SBU’s) - mobile services,
broadband & telephone services (B&T) & enterprise services. The mobile business provides
mobile & fixed wireless services using GSM technology across 23 telecom circles while the
B&T business offers broadband & telephone services in 94 cities. The Enterprise services
provide end-to-end telecom solutions to corporate customers and national & international long
distance services to carriers. All these services are provided under the Airtel brand.

Airtel is a brand of telecommunication services in India operated by Bharti Airtel. Airtel is the
largest cellular service provider in India in terms of number of subscribers. Bharti Airtel owns
the Airtel brand and provides the following services under the brand name Airtel: Mobile
Services (using GSM Technology), Broadband & Telephone Services (Fixed line and Internet
Connectivity), Long Distance Services and Enterprise Services (Telecommunications
consulting for corporate).

Leading international telecommunication companies such as Vodafone and SingTel hold

partial stakes in Bharti Airtel. In April 2006 Bharti Global Limited was awarded a
telecommunications licence in Jersey in the Channel Islands by the local telecommunications
regulator the JCRA. In September 2006 the Office of Utility Regulation in Guernsey awarded
Guernsey Airtel with a mobile telecommunications licence. In May 2007 Jersey Airtel and
Guernsey Airtel announced the launch of a relationship with Vodafone for island mobile
subscribers. In July 2007, Bharti Airtel signed a MoU with Nokia-Siemens for a 900 million
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dollar expansion of its mobile and fixed network. Until September 18, 2004, Bharti provided
fixed-line telephony and broadband services under the Touchtel brand. Bharti now provides all
telecom services including fixed-line services under a common brand "Airtel"


By 2010 Airtel will be the most admired brand in India:
 Loved by more customers
 Targeted by top talent
 Benchmarked by more business

Airtel always thinks in fresh and innovative ways about the needs of the customers and how
they want them to feel. They deliver what they promise and go out of way to delight the
customer with a little bit more.

Bharti Airtel is one of India's leading private sector providers of telecommunications services
based on an aggregate of 42,685,530 customers as on May 31, 2007, consisting of 40,743,725
GSM mobile and 1,941,805 broadband & telephone customers.

The businesses at Bharti Airtel have been structured into three individual strategic business
units (SBU’s) - mobile services, broadband & telephone services (B&T) & enterprise services.
The mobile services group provides GSM mobile services across India in 23 telecom circles,
while the B&T business group provides broadband & telephone services in 94 cities. The
enterprise services group has two sub-units - carriers (long distance services) and services to
corporates. All these services are provided under the Airtel brand. Company shares are listed
on The Stock Exchange, Mumbai (BSE) and The National Stock Exchange of India Limited

The company has a strategic alliance with SingTel. The investment made by SingTel is one of
the largest investments made in the world outside Singapore, in the company.
The company’s mobile network equipment partners include Ericsson and Nokia. In the case of
the broadband and telephone services and enterprise services (carriers), equipment suppliers
include Siemens, Nortel, Corning, among others. The Company also has an information

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technology alliance with IBM for its group-wide information technology requirements and
with Nortel for call center technology requirements. The call center operations for the mobile
services have been outsourced to IBM Daksh, Hinduja TMT, and Teletech & Mphasis.


As an outcome of a restructuring exercise conducted within the company; a new integrated

organizational structure has emerged; with realigned roles, responsibilities and reporting
relationships of Bharti’s key team players. With effect from March 01, 2006, this unified
management structure of 'One Airtel' will enable continued improvement in the delivery of the
Group’s strategic vision.


 Bharti Airtel added the highest ever net addition of 53 lakh customers in a single quarter
(Q4-FY0607) and also the highest ever net addition of 1.8 crore total subscribers in
 The company will invest up to $3.5 billion this fiscal (07-08) in network expansion.
 It has an installed base of 40,000 cellsites and 59% population coverage
 After the proposed network expansion, an additional 30,000 towers will result in the
company achieving 70% population coverage

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 Bharti has over 39 million users as on March 31, 2007
 It has set a target of 125 million subscribers by 2010
 Prepaid customers account for 88.5% of Bharti’s total subscriber base, an increase from
82.7% a year ago
 ARPU has dropped to Rs 406
 Non-voice revenues, (SMS, voice mail, call management, hello tunes and Airtel Live)
constituted 10% of total revenues during Q4, lower than 10.7% in the Q4 of the previous
 Blended monthly minutes of usage per customer in Q4 was at 475 minutes
 Has completed 100% verification of its subscribers and in the process disconnected
three lakh subscribers?


Name Bharti Airtel Limited.
Business Provides mobile, broadband & telephone (fixed line) and
Description enterprise services (carriers & services to corporates)
Established July 07, 1995, as a Public Limited Company
Rs. 184,202 million (year ended March 31, 2007-Audited)
Rs. 117,255 million (year ended March 31, 2006-Audited)
As per Indian GAAP Accounts
Rs. 74,407 million (year ended March 31, 2007-Audited)
Rs. 42,250 million (year ended March 31, 2006-Audited)
As per Indian GAAP Accounts
Shares in Issue 1,895,934,157 as at March 31, 2007
The Stock Exchange, Mumbai (BSE)
The National Stock Exchange of India Limited (NSE)
40,743,725 GSM mobile and 1,941,805 broadband & telephone
Customer Base
(fixed line) customers (Status as at month ended May 31, 2007)

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Provides GSM mobile services in all the 23 telecom circles in
India, and was the first private operator to have an all India
Provides broadband (DSL) and telephone services (fixed line) in
94 cities in India.
Bharti Airtel Limited
(A Bharti Enterprise)
Qutab Ambience (at Qutab Minar), Mehrauli Road,
Registered Office
New Delhi - 110 030
Tel. No.: +91 11 4166 6000
Fax No.: +91 11 4166 6011/12


At Bharti, CSR is a way of life. Each department and employee strives to be sensitive to the
stakeholders and environment within their work context. Bharti encourages employees to take
decisions and design business-linked processes that are sensitive to communities and

Corporate Social Responsibility (CSR) in Bharti encompasses much more than only social
outreach programs. It is an integral part of the way Bharti conducts its business. The essence
of Bharti’s commitment to Corporate Social Responsibility is embedded in the ‘Corporate
Values’, which stem from its deepest held beliefs. These Values are:
 To be responsive to the needs of our customers
 To trust and respect our employees
 To continuously improve our services – innovatively and expeditiously
 To be transparent and sensitive in our dealings with all stakeholders

They encourage their employees to take decisions and design business processes, keeping in
mind the following:
 Ethics, fairness and being correct
 Meeting and going beyond compliances and legal requirements
 Showing respect and sensitivity towards stakeholders and communities, and
 Nurturing the environment

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Their practice CSR beliefs and commitments through a three-pronged approach:
 Engaging with stakeholders
 Ensuring stakeholder sensitive policies and practices
 Undertaking programs for our employees, community and environment

Bharti Airtel sensitizes its employees towards CSR issues at various forums. They feel that it
is important that each employee should understand the importance of environmental, social and
economic aspects while taking business decisions. At Bharti, each employee is sensitized
towards CSR issues and thus operations at the ground level are influenced. Such sensitization
exercises have resulted in many socially and environmentally sensitive decisions on the ground.
For example, Confidence Plan for hearing impaired people, covers noise-making DG sets at
extra cost, investing in consumer awareness campaigns to ensure safe use of mobile are some
examples of the above.

They believe that one of the most important drivers of growth and success for any organization
is its people. At Bharti Airtel, their ‘Mantra’ for employee delight focuses on 5 Ps – People,
Pride, Passion, Processes and Performance.

Bharti Airtel has been recognized among the Best Employers in the Country for two successive
years – being 14th in 2003 & jumping ahead of several other large conglomerates to an enviable
position of the 2nd Best Employer in the Country in 2004. This is a clear demonstration &
acknowledgement of the robust, progressive, people as well as business aligned Human
Resource practices, which the organization has developed and implemented remarkably in a
very short span of time.

Bharti Airtel follows an “open door policy” to approach the management, which helps resolve
issues with mutual agreements. They encourage people to stand up against any unfair treatment
for which they have the Office of the Ombudsman, where employees can raise any issues
regarding business and workplace conduct. Bharti ensures transparency through the various
communication policies, strategies and plans. Regular Employee Communication Forums
provides a platform for the employees to raise issues that require resolution.

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Their leaders strongly believe in facilitating and initiating activities that help employees
manage their health and well-being. Their focus always remains to redefine leadership; they
develop leaders who enable performance and inspire their people to unleash their potential.
Their people orientation reflects in their vision of being “targeted by top talent”, and a key
aspect of their business focus “building a best-in-class leadership team that nurtures talent at
every level.”

Employee friendly HR policies have been put in place, which amply reflect the organization’s
concern for its people. Some typical examples of these policies and practices include a family-
day at office, half day leave for birthdays, gifts for anniversaries, compulsory 10 days off,
festival celebration with family, no official meetings on weekends, five day weeks, concierge
services, call center engagement programs etc. These “care” policies and practices are applied
across the organizational levels without any discrimination.

From self-management workshops to aerobics sessions, yoga classes to provision of

relaxation/meditation rooms, they ensure that every employee keeps a check on his/her fitness.
Tie-ups with leading health service organizations enable our employees to undertake periodical
health check-ups depending upon their age. This facility is also extended to employee family
members at discounted rates. The company provides Flexible Group Med claim insurance to
all employees, covering all kinds of illnesses, accidents and hospital coverage for serious
ailments. Apart from these specific engagements, we regularly organize health check-up
camps, eye check-up camps and stress management sessions. Some of their offices have opened
gymnasiums/fitness facilities to ensure that the fitness fanatics do not have to worry about time
constraints to remain fit. At many of their locations, they have hired psychologists who
undertake personal counselling sessions for employees.

Bharti Airtel offers a flexible compensation structure to its employees wherein the employees
have the flexibility to structure their fixed component of their compensation according to their
requirements within the ambit of legislation.

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 The main objective of my thesis is to study how performance appraisal is conducted in
the Telecom industry in India.
 To study the various methods used by Airtel for Performance Appraisal.
 To find out what all measures should be taken so as to improve the process of
performance appraisal in terms of increasing the success rate for employee performance
by Airtel.

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The hypothesis of the study is as below:

H0 – The performance appraisal methods used by Bharti Airtel is satisfactory.

H1 – The performance appraisal methods used by Bharti Airtel is not satisfactory.

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The human resources are the most important assets of an organization. The success or failure
of an organization is largely dependent on the calibre of the people working therein. Without
positive and creative contributions from people, organizations cannot progress and prosper. In
order to achieve the goals or the activities of an organization, therefore, they need to recruit
people with requisite skills, qualifications and experience. While doing so, they have to keep
the present as well as the future requirements of the organization in mind. Organizations exist
to achieve goals. Goals are only met when individual employees efforts matches with policy
of the organisation and thus bringing out success and effectiveness. The assessment of how
successful employees have been at meeting their individual goals therefore becomes a critical
part of HRM and here comes performance appraisal system.

Performance appraisal is an important component of the information and control system. In

today’s flexible organizations, performance evaluation provides an important way for
managers to clarify performance goals and standards and to enhance future individual
performance. Thus the purpose of performance appraisal is to improve the organization’s
performance through the enhanced performance of individuals.
The performance appraisal system:
 Is an organizational necessity
 Is based on well-defined objective criteria
 Is based on careful job analysis
 Uses only job related criteria
 Is supported by adequate studies
 Is applied by trained qualified raters
 Is applied objectively throughout the organisation
 Can be shown non-discriminatory as defined by law.

Objective of Performance Appraisal

There are mainly two purposes for which performance appraisal is used by an organization:
 To improve the work performance of employees by helping them realize and use their
full potential in carrying out the firm’s missions; and
 To provide information to employees for use in making work related decisions,

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 Appraisals generate information to support administrative decisions. Promotions
transfers and reassignments, demotions and terminations are action based at least in part
on performance.
 Appraisals provide feedback to employees and thereby serve as vehicle for personal or
career development because feedback provides, Reassurance that they are contributing
and doing the right thing, Awareness of the impact on the desired results, a measure of
the adequacy of performance (quality, quantity, speed etc.), Recognition of the
importance and value of their performance.
 Once the development needs of employees are identified appraisals can help establish
objectives for training programmes. Thus evaluations provide a basis for changing
performance plans, including objectives and standards of behaviours as business plans
and conditions change.
 As a result of proper specifications of performance levels, appraisals can help diagnose
organizational problems. They do so by identifying training needs and the knowledge,
abilities, and other characteristics to consider in hiring, and they also provide a basis
for distinguishing between, effective and ineffective performers.
 Appraisals are used as criteria in test evaluations. The rationale for differential
treatment of employees needs to be consistent with company’s values, philosophy and
strategy. It also needs to be balanced with the desire for collaboration, rather than
competition and conflict, sought in TQM.

New Objective of Performance Appraisal

 Performance appraisal system can serve the following purposes if designed properly
 Help each employee to understand more and more about his role and become clear
about his functions.
 Helps each employee to understand his own strengths and weaknesses with respect to
his role and functions of the company.
 Helps identifying the developmental needs of employees.
 Helps increase mutuality between employee and his superiors.
 Provides an opportunity to the employees for self-reflection and individual goal setting
 Helps in preparing employees for performing at high levels by continuously enforcing
the required qualities.
 Creates a healthy environment in the organization.

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First Phase of Performance appraisals began in the early sixties were prepared in the form of
Annual Confidential Reports (ACR0, also known as Employee Service Records (ESR) in some
organizations. Negative remarks in the ACT or ESR were considered damaging for career
growth. It was thus important to keep the boss in good humor so that the ACR or ESR did not
get spoiled. The ESR was largely trait based and the traits used were sincerity, punctuality,
dynamism, job-knowledge, loyalty, initiative, leadership etc. The ACR and it was this strict
confidentiality that was supposed to serve as the motivating force for them. This may be
considered as Phase 1 of the performance appraisal systems in India.

In the Second Phase that spanned late sixties and early seventies, the main change was in
communication of adverse remarks to the employees. It was felt that unless this system of
communicating to the employees in writing any quality or trait on which they got a rating of
33 per cent or less. Even though the communication was sent to the employer by the personnel
department or the establishment section in a routine manner, the employees took it very
seriously because it required office played a key role in moderating the assessment, and he
normally had all the powers to overrule the ratings of the reporting officer of the employee.

In the Third Phase of appraisals, the employee was given a scope to state his own
accomplishments in the confidential report form. The term annual confidential report was
replaced during this period by Performance Appraisal. The appraisal process began at the end
of the year with a statement by appraise about his significant accomplishments during that year.
Some organizations later turned this “opportunity given to appraise to express his significant
achievements as self-appraisal”. However, this term was a misnomer as there was no scope for
appraise to appraise himself. A few organizations subsequently developed this part of the
appraisal by adding other questions about difficulties faced, plans for improvement next year
etc. Everything else remained the same. The formats became a little more elaborate and in few
cases, the appraisal included the details of the actual work done, largest achieved etc. The
confidentiality, however, was maintained as before. In most cases, there was no communication
to appraise about the performance assessment. In a few of them, a column of training needs
was introduced. The appraisals continued to be control oriented and not developmental.

It was really in the he Fourth Phase that the system of performance appraisals underwent a
quantum leap. This phase began in the mid-seventies and in a way was initiated in India by
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Larsen & Toubro Limited, followed by the State Bank of India, Bharat Earth Movers and few
other organizations. This phase witnessed a shift from control to development, appraisal to
analysis, strong links to training, confidentiality to openness and traits to quantifiable tasks and

The movement towards open and development oriented appraisal systems was initiated by
L&T when it adopted a system making appraisal more performance based, participative
(dialogic and interactive), open and developmental. It required the employee and his reporting
officer to plan the performance (the term key performance areas or KPAs was introduced) or
appraise in the beginning of the year, review it after six months with the boss, analyses the
factors affecting performance, discuss developmental needs, have performance counseling and
share the ratings with appraise. The system required active participation of appraise and was
intended to be a performance planning, performance reviewing. And performance developing
system. In the late seventies and early eighties, most organizations were fascinated by this open
and development oriented system. Some of them even started new HRD departments by
appointing HRD managers having the skills to design, monitor and implement the system.
While a few organizations switched over to this system, it took about 10 years of experience to
fully understand its intricacies and dynamics. The change process was slow largely because the
employees were not used to the openness introduced by the new system, the HRD managers
did not have enough skill base to monitor it, and the top management lacked patience and
perspective about its potential advantages. Several organisations could not get out of the
mindset created by earlier confidential report system. They continued to use it for promotions,
which were considered as the most important indicators of development. It is only by the mid-
eighties that organisations started setting down and feeling comfortable with the open appraisal

Phase Fifth has started only in last three years with organisations showing some maturity and
growth in terms of their understanding of appraisals. This phase is characterized by a movement
towards development in spirit and form. This is symbolized by the substitution of the term
performance appraisal by performance review system, performance development system,
performance analysis and development to rewards and from comparative assessment to
assessment in relation to plans. There is a movement from rewards and controls to culture
building and development and the new phase also indicates a shift towards appraisal by
multiple sources rather than by only the reporting officer.
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Performance Appraisal Map

Trends in Performance Appraisal System

Performance appraisal in its traditional from known as ACR-Annual Confidential Report is
often misused than used. Performance appraisal has now been recognized as a HRD function.
In the last decade many organisations have reviewed and changed their managerial appraisal

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Unlike the confidential report system used in the past, new systems in the most cases were
intended to help executive to set plan their performance systematically every year and review
it. From being purely judgmental process on the part of appraisal, today’s appraisal seeks
employee participation in the process of planning his own performance appraisal, is used as an
essential step before the final review by the appraiser. Training and development needs are to
be identified jointly by the appraisee and appraiser in most cases. A culture of Appraisal is
moving away slowly to a culture of planning, review and developing.

There has been a significant movement or shift in performance appraisal system in the Indian
organisations over the last few years. While some organisations have had a long experience
with appraisal systems, others have started paying more attention to them recently. The
following shifts in the performance appraisal system have been noticed.
 There is a trend away from the composite appraisals with multiple objectives (e.g.
performance planning, development rewards and promotions) to separate systems for
different systems for different clusters of objectives.
 There is a move away from isolated appraisal system to the business linked one.
 There is shift away from closed confidential type to open dialogue and discussions
based system.
 There is a movement quantitative (pseudo objective) to qualitative (interactive,
improvement and process oriented) system.
 There is a movement away from boss assessed feedback to 360-degrees feedback
involving customers, peers, team members, subordinates etc. in addition to supervisors.
 There is also a trend away from elaborate systems to simple ones.
 There is a shift from standard systems to flexible and group specific ones.
 There is a movement from result oriented systems to process oriented system.
 There is a movement from the assessment of individual performance to the
development of team performance.
 There is also a movement from complacency to experimentation through continuous
research change.

Performance appraisal refers to the assessment of an employee’s actual performance, behavior

on jobs, and his or her potential for future performance. Appraisal has several objectives but
the main purposes are to assess training needs, to effect promotions, and to give pay increases.

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Appraisal of performance proceeds in a set pattern. The steps involved are –defining appraisal
objectives, establishing job expectations, designing the appraisal programme, conducting
performance interview, and using appraisal data for different HR activities.

Two important contemporary techniques of performance appraisal include 360º appraisal and
goal setting approach to appraisal also known as ‘Managing by Objectives’. Currently most of
the companies are using one of the following Performance Appraisal Methods:
 360 Degree Appraisal Method
 Rating Scale Method
 Management by Objective Method

Under the 360 Degree appraisal method the employee is rated from all angles i.e., by the
superiors, subordinates, peers, suppliers, distributors, customers and clients. Under the
Management by Objective method the employee goals are set mutually by the employee's and
the management. And the employees are rated based on the accomplishment of these goals.
Under the Rating Scale method each employee trait or characteristic is rated on a scale that
usually has several points ranging from "poor" to "excellent" (or some similar
arrangement).The traits assessed on these scales include employee attributes such as work
quality, cooperation, initiative, punctuality and technical competence, etc. The selected traits
should be in some way relevant to the appraisee's job.

360 Degree Appraisal and Feedback

The 360 degree appraisal involves rating of an employee or manager by everyone above,
alongside and below him. Corporates like General Electric India (GE), Reliance Industries Ltd.
(RIL), Crompton Greaves, Godrej Soaps, Wipro, Infosys, Thermax and Thomas Cook are all
using this tool to find out truths about their managers. Although deployed mostly as a fact-
finding technique, 360º appraisal is also used to design promotion and reward system in the

According to Milliman and others, “360-degree appraisal is the process of systematically

gathering data on a person’s skills, abilities and behaviours from a variety of sources –the
manager, peers, subordinates and even customers and clients”. Thus, appraisal of an employee
is done by his superior, his peers, his subordinates and clients or outsiders with whom he

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interacts in the course of his job performance. In 360-degree appraisal, besides appraising the
performance of the assessee, his other attributes such as talents, behavior, values, and technical
capabilities are also appraised.

Besides the employee himself, superior, subordinates and peers play an important role in the
appraisal. Structured questionnaires are used to collect responses about the employee from his
superiors, peers and subordinates. Several parameters relating to performance and behavior are
used in the questionnaires. Each manager is assessed by a minimum of fifteen colleagues, at
least two of them being his bosses, four of them peers, and six of them subordinates. Even the
important customers or clients of the firm may also be requested to give their assessment of the
concerned employee. The responses are presented collectively to the assessee in the form of
charts and graphs. Comments and interpretations are presented later. Counselling sessions are
arranged with the employee to remove the weaknesses identified in the 360 degree assessment.

Merits of 360 Degree Appraisal

The merits of 360º appraisal are as under:
 The 360 degree appraisal leads to greater self-awareness of those appraised. It reveals
strengths and weaknesses in their working styles.
 The gap between self-assessment and the views of one’s colleagues of peer group in
 It facilitates empowerment of subordinates who get a say in the appraisal of their bosses.
 Inflexible managers are forced to initiate self-change.
 Facts about organizational culture and ambience are brought to light by the multiple

Limitations of 360 Degree Appraisal

The system of 360º appraisal suffers from the following limitations:
 The 360 degree appraisal system ignores performance in terms of goals.
 The candidate being appraised may not accept negative feedback from the subordinates
and peers. He might feel humiliated.
 Responses from colleagues often tend to be biased.
 Linking rewards to findings under 360 degree appraisal can prove to be unfair.
 The subordinates and peers might not be fully competent in appraisal.

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Element of 360 Degree Appraisal
The elements of 360º appraisal program are as follows:
 Appraisal by Superior/ Boss. This is the most important element of the 360 degree
appraisal. Here the focus is to provide constructive feedback on employee’s
performance and his development needs. It is the responsibility of the superior to ensure
that employee sets goals not only in the area of business performance but also in the
areas that are vital to the organization. These are called corporate thrust areas and may
include relationship management, safety and quality development. If the working style
of the employee is a concern area and needs improvement for enhancing effectiveness
then goal may be set for “style of functioning” such as, from short-term to long-term
orientation. It is expected of the superior to put career aspirations of the employee in
proper perspective. Firstly, superior must communicate to the employee in a clear way
what the organization plans for the employee. Secondly, if the employee has unrealistic
aspirations, then also it is superior’s responsibility to share with the employee the
realistic picture given his/ her strengths, development areas, experience, qualifications,
and the organization’s ability to provide growth. This is how the superior’s appraisal
has a very significant role to play.
 Appraisal by the Peer Group. The peers play an important role in the life of an employee
in the organization. The can also provide a deep insight into the personality make up,
attitude and style of working of the employee. For better results, it is essential to select
the right peers for the purpose of appraisal. They must include peers both from within
the department as well as from the other departments, which are directly connected with
the working of employee’s department. The concept of internal customers comes handy
here. Three to five internal customers should normally be chosen for peer appraisal. In
order to achieve the purpose of 360º appraisal, the peer group appraisal must strive to
get the feedback on (a) employee’s working style, (b) sensitivity towards others, (c)
spirit of co-operation and collaboration, and (d) ability to work as a team member.
 Appraisal by the Subordinates. Another distinctive feature of 360º appraisal is the role
of subordinates in appraisal. It signifies two things. Firstly, it is a clear expression from
the organization that it encourages openness and that feedback is a two-way process.
Secondly, it is a systemic recognition of the fact that an employee’s subordinates do
play a vital role in his appraisal. Thus, the purpose of subordinate’s appraisal is to get
first hand assessment of how the subordinates perceive their superior to be in terms of:

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(a) delegation of authority, (b) guiding and training of subordinate, (c) motivation of
subordinates, (d) team building, etc. Upward appraisal provides an opportunity to the
subordinates to give feedback to their superior on the kind of things they would like
him/ her to continue doing (status quo), things they would like him/ her to stop doing
(areas for corrective action), things they would like him/ her to start doing (areas for
new initiatives).
 Self-Appraisal. Any program of 360º appraisal would not be complete without self-
appraisal by the employee whose performance is being appraised. Self-appraisal
facilitates the employee to identify his/ her strengths and weaknesses and provides an
opportunity to assess the performance. In a well-established system, employees use the
self-appraisal very effectively and organisations also find that employees often are their
own strongest critics and display very high degree of objectivity. Self-appraisal also
provides an opportunity to the employee to express his career moves for the future.
However, this is only for gathering information and that under the given organizational
constraints, it may not be possible to provide the career progression desired by the
employee. Nevertheless, it is in the organization’s interest to at least know on a first
hand basis the aspirations of its employees.

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 Research approach would be based on the qualitative section. Here, the data and
information gathered would be in moreover in the form of text, comments or numeric
value. We have to screen all the collected data and information and scratch out the
required information out of that.
 Here, we have to rely on the information, comments and data provided by the
employees of Bharti Airtel and previous books, journals and web – information.
 The data would be gathered and distributed in form of text and numeric only and put at
the required stages.
 The survey would be started by preparing a concrete questionnaire and getting that
filled from the Employees of Bharti Airtel.


 Here, in this case, the information can be extracted from the employees of Bharti Airtel.
 The Sample will be chosen out of the different departments, mainly from marketing
 The respondents have been contacted via email and telephones.
 There are total 100 samples chosen for the study.


The Data would be analysed from the texts, numeric information provided by the employees
and samples. This information would be segregated as per the requirement and the concrete
information will be distributed according to the required heads.
 Primary Data – The data would be collected from the questionnaire filled by the
respondents and information collected by personal interview.
 Secondary Data – The data would be collected from the earlier Journals, and data
collected from the designated authorities.

The data would be moreover in the form of numeric value of text information, so that has to be
converted into presentable or graphical form as per the requirement of the project.


Historical research

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It generates descriptions & sometimes attempted explanations, of conditions, situations and
events that have occurred in the past. For Example, A study that documents the evolution of
teacher training program since the turn of century, with the aim of explaining the historical
origins of the content and processes of current programs (Postlethwaite, 2005)

Here, in this study, this methodology cannot solve the problem because, the issues studied here
is Study and evaluation of performance management system and employee engagement
activities at Bharti Airtel, and the study has to be done on the basis of future prospects.

Descriptive research
It provides information about conditions, situations and events that occur in the present. For
example, a survey of the physical conditions of school building in order to establish a
descriptive profile of the facilities that exist in a typical school. (Postlethwaite, 2005)

This is a very elaborative and correct kind of research method, where we not only rely on the
past trends and studies but also can observe the current studies and current concepts.

Correlation research
It involves the search for relationship between variables through the use of various measures
of statistical association. For example, an investigation of the relationship between teachers’
satisfaction with their job and various factors describing the provision and quality of teacher
housing, salaries, leave entitlements, and the availability of class room supplies. (Postlethwaite,

Correlation research method makes relationship between two variables. And our study does
not satisfy this methodology because we are studying only about the Study and evaluation of
performance management system and employee engagement activities at Bharti Airtel. In case,
we are studying the trend of two different motivational tools and comparing the trends of both,
then this kind of study would be suitable.

Causal research
It aims to suggest casual linkages between variables by observing existing phenomena and then
searching back through available data in order to try to identify plausible casual relationships.

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For example, a study of factors related to student ‘drop out’ from secondary school using data
obtained from school records over the past decade. (Postlethwaite, 2005)

Our study regarding “Study and evaluation of performance management system and employee
engagement activities at Bharti Airtel” does not satisfy this kind of research methodology
because, this study is completely depended on the factual data and theories, and casual method
simply solves the problems which have been already almost solved. It means, this method is
suitable when you already know the results but you simply need any fact to support that.

Experimental research
It is used in settings where variables defining one or more “causes” can be manipulated in a
systematic fashion in order to discern “effects’ on other variables. For Example, an
investigation of the effectiveness of two new textbooks using random assignment of teachers
and students of three groups – two groups for each of the new textbooks, and one group as a
‘control’ group to use the existing textbook. (Postlethwaite, 2005)

Experimental research methodology is suitable where we are completely studying any field or
study which is altogether virgin and has not been touched earlier. And the researcher has to
make various experiments to come out on one result. Here, we are studying a field where, we
are moreover relied on the persons and information which is already existed in this field.

Case study research

It generally refers to two distinct research approaches. The first consist of and in depth of a
particular student, classroom or school with the aim of producing a nuanced description of
pervading cultural setting that affects education, and an account of the interactions that take
place between students and other relevant persons. For example, an in-depth exploration of the
patterns of friendship between students in a single class, the second approach to case study
research involves the application of quantitative research methods to non-probability samples-
which provide results that are not necessarily designed to generalizable to wider populations.
For example, a survey of the reading achievements of the students in one rural region of a
particular country (Postlethwaite, 2005)

Case study research more over focus on the past data and past information, where we study a
case, which is almost similar to our current problem or study so, as such we are not dealing
40 | P a g e
with such kind of study or case, we are collecting desecrated information from different places
and gathering at one common place to come out on one judgment.

Ethnographic research
It usually consists of a description of events that occur within the life of a group – with
particular reference to the interaction of individuals in the context of socio cultural norms,
rituals and beliefs shared by the group. The researcher generally participates in some part of
the normal life of the group and uses what he or she learns from his participation to understand
the interactions between group members. For example, a detailed account of the daily tasks
and interactions encountered by a school principal using observations gathered by a researcher
who is placed in the position of “Principal’s Assistant’ in order to become fully involved in the
daily life of the school. (Postlethwaite, 2005)

This type of method suffices the kind the research which is not based on data and facts but on
the social and cultural behaviour of the people. For example, to understand the customers
purchasing behaviour etc., so, our study does not suit this method.

Research and development research

It differs from the above types of research in that, rather than bringing new information to light,
it focuses on the interaction between research and the production and evaluation of a new
product. This type of research can be ‘formative’. For example, an investigation of teachers’
reactions to the various drafts and redrafts of a new mathematics teaching kit, with the
information gathered at each stage being used to improve each stage of the drafting process.
Alternatively, it can be used summative. For example, a comparison of the mathematics
achievements of student exposed to anew mathematics teaching kit in comparison with students
exposed to the established mathematics curriculum. (Postlethwaite, 2005)

Well, this kind of method itself defines that it is not suitable for our study, which we are doing
on “Study and evaluation of performance management system and employee engagement
activities at Bharti Airtel”.

So, finally, from all the above mentioned research methodology, we reached on the point that,
the current study “Study and evaluation of performance management system and employee
engagement activities at Bharti Airtel” satisfy the Descriptive research method. Because, here

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we are supposed to deal with the information and data which is based on the past facts and
figures and at the same moment current judgment and studies.


Phase I- Exploratory work
Exploratory information has been collected from the interviews (mentioned in various journals)
of the various senior officials related to Bharti Airtel.

Phase II- Descriptive research

Descriptive study is done from the various journals, websites & from the books of the authors,
who have specifically written about the Study and evaluation of performance management
system and employee engagement activities at Bharti Airtel.
Research Type: Descriptive.

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Male Female
69 31



Male Female

Findings: 69% respondents were Male and 31% were female.

Less than one year 37
1-3 years 48
More than 3 year 15



Less than one year 1-3 years More than 3 year

Findings: Above graph depicts the year of experience of respondents at Bharti Airtel.

1. A clear definition of my goals will enable me to improve my performance

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0% 0% 0%



Substantially To certain extent Marginally

To less extent Not at all

Findings: 58% Respondents at Bharti Airtel agree that well defined goals substantially
enable them to improve on their performance. Inherently well-defined goals lead to
improved performance.

2. My job role has changed substantially over the last 3 years.

0% 0%

27% 19%


Substantially To certain extent Marginally

To less extent Not at all

Job Content: Employees at Bharti Airtel feel that their job has not changed much in the last
3 years.

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3. I begin each year with a clear understanding of my goals for the current year.



Substantially To certain extent Marginally

To less extent Not at all

Future Direction: Only 34% employees at Bharti Airtel begin the new year with clear
understanding of their goals while 12% refuted to this.

4. Clarity of goal will help me in planning my work better.

0% 0%



Substantially To certain extent Marginally

To less extent Not at all

Future Planning and effects: 84% employees feel that clarity of goal will help me in
planning my work better.

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5. Resource planning to achieve my goal needs to be improved



Substantially To certain extent Marginally

To less extent Not at all

Organizational Effort to Resource Planning: All the respondents feel that Resource
planning to achieve my goal needs to be improved.

6. A regular review of my goals will enable me to take early corrective action



Substantially To certain extent Marginally

To less extent Not at all

Training and bearing: The employees are satisfied with the way the company imports the
training and bearing process on a continuous basis to sustain growth.

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7. My goals have been documented and measurable.

0% 0%


Substantially To certain extent Marginally

To less extent Not at all

Findings: As per respondents their goals have not been documented and are not

8. My goals are dependent on the goals of other members of my team.



Substantially To certain extent Marginally

To less extent Not at all

Findings: As per all the respondents their goals are dependent on the goals of other
members of my team to a certain extent while they felt that their goals are more or less
based on independent performance.

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9. I am able to understand the relationship between my goals and my activities.

0% 0%

36% 27%


Substantially To certain extent Marginally

To less extent Not at all

Findings: As per 27% respondents they are able to understand what is expected out of them
while 27% agreed to this to a certain extent.

10. Setting goals will enable me to achieve a better work life balance.

0% 0% 0%



Substantially To certain extent Marginally

To less extent Not at all

Findings: As per 88% respondents the organizational efforts to set individual goals for
employees enable them to achieve a better work life balance.

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11. Proper maintenance and arrangement of the records improve the presentation of
my performance.



Substantially To certain extent Marginally

To less extent Not at all

Findings: The employees felt that proper documentation of Performance Appraisal Records
help them to identify their strengths and weakness.

12. At the end of each quarter the updated records are checked and managed for the
future reference and clarification.
0% 0%



Substantially To certain extent Marginally

To less extent Not at all

Findings: 42% employees felt that proper documentation of Performance Appraisal

Records is done at Bharti Airtel and 58% marginally agreed to this.

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13. According to the department norms, I have sorted out my routine activities for my
better performance.

0% 0%



Substantially To certain extent Marginally

To less extent Not at all

Findings: 41% employees mentioned that they have well defined job-profile. 59% agreed
to this to a certain extent.

14. Agenda for the every project is set and used to review the action performed to
reach the goal.



Substantially To certain extent Marginally

To less extent Not at all

Findings: All the employees feel that the organization has a well - defined and well planned
project planning which leads to employee efficiency in achieving targets.

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15. I regularly review my achievement in the current performance with a pre - set


13% 7%

34% 46%

Substantially To certain extent Marginally

To less extent Not at all

Findings: 7% employees regularly review their achievement in the current performance

with a pre - set standard and 46% respondents did so to a certain extent.

16. Clear understanding of my responsibilities in a team enables me to achieve the

shared aims.

0% 0%



Substantially To certain extent Marginally

To less extent Not at all

Findings: 63% employees feel that Team Work and Cohesiveness leads to achieve the
shared aims.

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17. Maintaining unity in our teamwork improves efficiency and able to finish the task
within a period.



Substantially To certain extent Marginally

To less extent Not at all

Findings: 100% employees feel that maintaining unity in teams at Bharti Airtel improves
efficiency and helps the team enable them to the task within a period.

18. Equal sharing of the information in a team and unit, help to improve group



Substantially To certain extent Marginally

To less extent Not at all

Findings: 100% employees feel that Equal sharing of the information in a team and unit,
help to improve group cooperation at Bharti Airtel.

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19. I firmly believe that one can improve oneself by involving in on-job activities and
active participation.
0% 0%


Substantially To certain extent Marginally

To less extent Not at all

Findings: 54% employees firmly believe that one can improve oneself by involving in on-
job activities and active participation.

20. I constantly improve myself by attending various sessions related to my area of


0% 0%



Substantially To certain extent Marginally

To less extent Not at all

Findings: There is a lack of interest among employees in pursuing sessions in their area on

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21. I would like to acquire new knowledge and skill that contribute to individual and
organizational growth.



Substantially To certain extent Marginally

To less extent Not at all

Findings: All respondents would like to acquire new knowledge and skill that contribute to
individual and organisational growth.

22. Adapting to changing circumstances is the key for my success.



Substantially To certain extent Marginally

To less extent Not at all

Findings: All respondents mentioned that adapting to changing circumstances is the key
for my success.

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23. I am ready to accept change as a part of my achievement and flexible in dealing
with diverse situation.

0% 0%



Substantially To certain extent Marginally

To less extent Not at all

Findings: 9% employees at Bharti Airtel are ready to accept change as a part of their
achievement and are flexible in dealing with diverse situation. Thus the organization lacks
change readiness amongst 67% employees.

24. I constantly improve my ability to manage the changing circumstance readily



Substantially To certain extent Marginally

To less extent Not at all

Findings: All the employees at Bharti Airtel are constantly improving their ability to
manage the changing circumstances.

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25. Applying creative or out of box thinking allows me to modernize and improve the
existing process.



Substantially To certain extent Marginally

To less extent Not at all

Findings: All the employees at Bharti Airtel agree that applying creative or out of box
thinking allows them to modernize and improve the existing process.

26. I try to find innovative solution in unique situation, which improve Productivity.



Substantially To certain extent Marginally

To less extent Not at all

Training and bearing: The employees are satisfied with the way the company imports the
training and bearing process on a continuous basis to sustain growth.

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27. How do you rate the existing Performance Appraisal system at Bharti Airtel?

0% 0%


31% 54%

Substantially To certain extent Marginally

To less extent Not at all

Findings: 54% rate the existing Performance Appraisal system at Bharti Airtel to be
substantially reliable and effective.

28. Are you satisfied with the present performance appraisal system At Bharti Airtel?

16% 0% 16%
strongly agree

52% strongly disagree

The above drawn graph depicts the satisfaction level of employees at Bharti Airtel with respect
to the performance appraisal policy of the company. Currently there is three tier system
prevalent consisting of appraisee, appraiser and the reviewer. It enables the periodic evaluation
of the job performance of the employee.
 52% of the employees feel that they agree with the policy.
 16% of them feel that they strongly agree with the policy.
 16% of them are neutral with respect to the policy.
 Again 16% disagree with the policy of the company.

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As evident from the graphs depicted in the earlier pages, the systematic interpretation can be
formulated in the following way with respect to each of the variables taken into consideration
for the survey.
 Task Significance: Most of the employees feel that their performance determines the
performance of their colleagues as well.
 Task Identity: The employees feel that the task performed by them need dependent
charge for the successful completion of the task.
 Skill Variety: The employees agree that the organisation believes in developing the
multi-skilling in them on continuous basis.
 Autonomy: With reference to the decision making the survey reveals that they enjoy
sufficient independence and freedom in their job.
 Interest in work: The employees are enthusiastic about the work they perform.
 Growth purpose/promotion: The employees fee that the organisation has satisfactory
promotion policy as the promotion decision are taken objectivity and on good
 Recognition and appreciation: The employees feel that their efforts are valued and
appreciated in the organization.
 Feedback: The survey reveals that the supervision in the organisation constantly
provides the feedback to improve the performance of downlines.
 Monetary Benefits: This is one of the variables where the organisation needs to focus
on, as the survey reveals that the employees feel that they do not get fair pay compared
to others in similar job in different companies.
 They also feel that monetary rewards are not the only way to keep them motivated for
better productivity.
 Security: The employees felt that there is no threat to their job.
 Participation management: Employees are satisfied by the way they are involved in the
decision making process and they can frankly express their views with their senior
 Grievance Handling: The organisation also has to check on the efficiency of the
effective grievance handling process as the majority of employees are not satisfied with
its present state.

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 Training and bearing: The employees are satisfied with the way the company imports
the training and bearing process on a continuous basis to sustain growth.
 Communication system: The employees are satisfied with the flow of information in
the organization.
 Reward: The reward based on the excellence in performance in the organisation is
appreciated here along with knowledge and expertise.
 Supervision: The employees are satisfied with the guidance and freedom provided by
the supervision for the execution of respective duties.
 Working groups: The employees feel that they work as team as the company provides
conducive environment (primarily and informally) and the people are also friendly and
 Occupational status: The survey shows that the employees do not care about the job
title and the organisation excess that hierarchical differences are clearly discernible.
 Working Environment: The employees are satisfied with the working hours, lunch,
transportation and other facilities provided by the organisation.
 Social Relation: The employees believe that healthy social relation beyond office hours
should exist that is the company should facilitate through several activities.
 Organisational Commitment: The employees feel pride to be associated with the
organization like Airtel but express the willingness to leave the organization in case of
financial crisis.

 The company should try to avoid employee resistance, which is associated with change
worlds true change follows instance. This for all kinds of systems be it Performance
 The HR Dept. should attempt to obtain the maximum agreement of Managers in respect
of needs and objectives and purpose of the systems.
 Being in the field of technological driven products improve the frequency of the trading
modules and workshops.
 Overtime should be taken care of at time of performance appraisal, which would
motivate the employees to perform better for longer hours.
 To create a high degree of satisfaction, the company should use methods for recruitment
which are objective, standard, fair and are perceived to be unbiased.

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 More emphasis should be laid on recruitment through advertisements, which should
provide a realistic job preview. This will help in increasing the reach of the company
as well as in attracting the relevant applicants and thus saving their valuable time.
 References and recommendations should not be the major tool of recruitment. These
can be biased and unfair as usually those recommendations are used who gives a
positive feedback. This increases the cost of the company in terms of evaluation of the
feedback. It is also a very time consuming process.
 Interviews should be used more often as most employees suggested this method of
selection. Such a method of face-to-face interaction saves costs, leads to a two-way
communication and gives the candidate a chance to clarify his/her doubles and make a
well-informed decision.

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Measuring employee performance has come a long way from the annual performance appraisal
to an ongoing performance management process. In recent years, there has been a shift away
from performance appraisals to a more comprehensive approach called performance
management. Performance management is an ongoing process where the manager or
supervisor and employee work together to plan, monitor, and review an employees work
objectives or goals and overall contribution to the organization.

A PMS enables a business to sustain profitability and performance by linking the employee’s
pay to competency and contribution. It provides opportunities for concerted personal
development and career growth. It brings all the employees under a single strategic umbrella.
It gives supervisors and subordinates an equal opportunity to express themselves under
structured conditions. PMS is a formal, structured system of measuring and evaluating an
employee’s job related behaviours and outcomes to discover how and why the employee is
presently performing on the job and how the employee can perform more effectively in future
so that the employee, the organization and society all benefit. Performance management shifts
its focus from command and control concept of leadership to facilitation model of leadership.
This change of focus has been accompanied by recognition of the importance of employees,
their work related performance in achieving organization long-term objective and control. In
performance management individuals and team performance, in terms of the customer’s
response to the goods and services offered. All individual and team performance are vital, but
they must be interrelated and seen as a part of the total performance. Performance management
is like compass, which indicate actual direction as well as the desired direction. It is a
continuous improvement over time. Performance management requires willingness and a
commitment to focus on improving performance at the level of the individual or team every
day. It provides instantaneous information describing the difference between an individuals or
teams current position and actual desired position. It provides timely feedback on performance
while focusing everyone’s attention on overall objective. According to Armstrong
“Performance management system is the process for establishing shared understanding about
what is to be achieved and an approach to managing and developing people in a way which
increases the probability that it will be achieved in the short term and long term.”

Performance management is about creating a system that provides employees with

organizational direction and priorities make them aware of their current performance levels,
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support them through training and coaching and reward those who demonstrate high
performance. When referring to business performance Management it refers to an enterprise’s
ability to build processes and applications that facilitate creation of goals, creation of
operational strategies and the ability to monitor key indicators that provide timely and
continuous feedback on whether the operational strategies are successful at implementation of
the goals and objectives set by executive management.

Designing a recruitment and selection program is a part of a strategy process. In formulating a

recruitment and selection strategy, it should be linked to the organization’s mission and HR
strategy. The system functions as a management tool to help ensure that employees are focused
on organizational priorities and operational factors that are critical to the organizations success.
Companies have strategize to a large extent in order to design a scientific recruitment and
selection structure. This would involve a scientific methodology and approach to evaluating a
job or a position such that it fits in with the “bigger picture” i.e. Employee Retention capacity.
Other issues like company policy constructs and business structure also pay significant roles
not to mention competition and competitive reaction. Complicate this further with the industry
growth facts and statistics and what you have is a mish-mash of strategies trivin that is difficult,
if at all possible to comprehend.

This analysis has depicted what are the concern recruitment and selection techniques adopted
by firms and has provided an insight into the recruitment and selection system followed by
Bharti Airtel such a study provides Bharti Airtel and huge opportunity to capitalize on.

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 Mirza S. Saiyadain - Human Resource Management 2nd Edition Publishers – Tata

 Neal Schmitt & David Chan – Personnel Selection (A Theoretical Approach).
1) Managing People — S.P. Gupta
— Sanjay Halon
2) Human Resource Planning — John Bramham
3) Personnel Management and industrial Relations - It's theory & practices in
India — Biswanath Ghosh
4) Personnel Management — C.B. Mamoria
5) Personnel Management - Correspondence Course Material
6) Personnel Management — Arun Monappa
— Mirza S. Saiyadain
7) Human Resource Development
—David Megginson
—Jennifer Joy-Mathews
—Paul Banfield
8) Human resource and personnel management – K Aswathappa
9) Human Resource Management – T.N.Chhabra

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1. Since how long are you working with this organizations?
 1 years
 1-2 years
 2-3 years
 More than 5 years

2. What admires you most in this organization?

 Salary
 Working environment
 Management
 Other specify

3. Accordingly to you what is the best tool to motivate employees of your department?
 Money
 Training
 More holidays
 Other Specify

4. What is your opinion about current performance appraisal of company?

 Excellent
 Good
 Normal
 Poor

5. Duration of working at this designation?

 1 years
 1-2 years
 2-3 years
 More than 5 years

6. Do you have a formal and defined Performance Appraisal System?

7. How do you measure the performance of your employees?

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8. What are the criterion you used while appraising (rank the following order of
Importance from 1 to 5)?
 Performance
 Behavior
 Relationship
 Knowledge of area
 Commitment to work

9. How frequently performance appraisal of employees is carried out?

 Quarterly
 Half yearly
 Yearly

10. How frequently performance appraisal of employees should be carried out?

 Quarterly
 Half yearly
 Yearly

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