Professional Documents
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Performance appraisal is the process of obtaining, analyzing 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. It is a powerful tool to calibrate, refine and reward
the performance of the employee. It helps to analyze 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. People differ in their abilities
and their aptitudes. There is always some difference between the quality and quantity of the same
work on the same job being done by two different people. Therefore, performance management
and performance appraisal is necessary to understand each employee's abilities, competencies and
relative merit and worth for the organization. Performance appraisal rates the employees in terms
of their performance. Performance appraisal takes into account the past performance of the
employees and focuses on the improvement of the future performance of the employees.
OBJECTIVES OF THE STUDY
To judge the gap between the actual and the desired performance.
To judge the effectiveness of the other human resource functions of the organization
such as recruitment, selection, training and development.
Customer Service and Innovation are the drivers of this Cellular Brand.
A brand known for their many firsts, Idea is only operator to launch
GPRS and EDGE in the country.
The latest feather in Idea's cap is GSM Association Award for CARE. It is the
second GSM Association award that Idea has won, the first one being
for Bill Flash.
Idea Cellular is part of the Aditya Birla Group, which is India's first
truly multinational corporation. Global in vision, rooted in Indian
values, the group is driven by a performance ethic pegged on value
creation for its multiple stakeholders.
The combined holding of the Aditya Birla Group companies in Idea
stands at around 57 per cent.
With ambitious future plans, the company is poised for rapid growth.
Our mission
Our Circle
Established Circles
New Circles
Board of Directors –
Management Team –
Circle Heads
VAS
4. Kodiak Ltd
5. Mauj
7. Yahoo
8. Rediff
9. Indiatimes
10.Mobile2win
11.Sify
12.NDTV
ROAMING
1. Roamware.inc
2. Starhome
3. Bharti Telesoft
MARKETING COMMUNICATIONS
PUBLIC RELATIONS
1. Clear PR
NETWORK
1. Nokia
2. Ericsson
3. Siemens
BILLING
1. Atos Origin
Coverage
Idea Cellular Ltd has seen phenomenal growth since its inception.
Idea Cellular's footprint idea is to first achieve critical mass, then drill
deep instead of spreading thin.
Brand Information
Brand Initiatives
Values We Value :
Ethical
Truthful
Principled
Transparent
Upright
Respectful
Accountability
Discipline
Responsibility
Result –orientation
Self-confidence
Reliability
Intensity
Innovation
Transformational
Fire-in-the-belly
Inspirational
Teamwork
Integration
Involvement
Openness
Global
Empowering.
Response time
Agile
Accelerated
Timelines
Nimble
Prompt
Proactive
Decisive
PROCESS OF PERFORMANCE APPRAISAL
SETTING
PERFORMANCE
STANDARDS
TAKING
COMMUNICATING
CORRECTIVE
STANDARDS
MEASURES
DISCUSIING MEASURING
RESULTS STANDARDS
COMPARING
STANDARS
MODERN APPRAISAL
Performance appraisal may be defined as a structured formal interaction between a
subordinate and supervisor, that usually takes the form of a periodic interview (annual
or semi-annual), in which the work performance of the subordinate is examined and
discussed, with a view to identifying weaknesses and strengths as well as opportunities
for improvement and skills development.
In many organizations - but not all - appraisal results are used, either directly or
indirectly, to help determine reward outcomes. That is, the appraisal results are used to
identify the better performing employees who should get the majority of available merit
pay increases, bonuses, and promotions. By the same token, appraisal results are used
to identify the poorer performers who may require some form of counseling, or in
extreme cases, demotion, dismissal or decreases in pay. (Organizations need to be
aware of laws in their country that might restrict their capacity to dismiss employees or
decrease pay.) Whether this is an appropriate use of performance appraisal - the
assignment and justification of rewards and penalties - is a very uncertain and
contentious matter.
Objectives of Performance Appraisal
Salary Increase
Performance appraisal plays a role in making decision about salary increase. Normally
salary increase of an employee depends upon on how he is performing his job. There is
continuous evaluation of his performance either formally or informally. This may
disclose how well an employee is performing and how much he should be compensated
by way of salary increase.
Promotion
Performance appraisal plays significant role where promotion is based on merit and
seniority. Performance appraisal discloses how an employee is working in his present
job and what are his strong and weak points. In the light of these, it can be decided
whether he can be promoted to the next higher position.
METHODS OF PERFORMANCE APPRAISAL
PAST-ORIENTED METHODS
1) Rating Scales:
The rating scale method offers a high degree of structure for appraisals. Each
employee trait or characteristic is rated on a bipolar 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 cooperation,
communications ability, initiative, punctuality and technical (work skills) competence.
The nature and scope of the traits selected for inclusion is limited only by the
imagination of the scale’s designer, or by the organization’s need to know. The one
major provision in selecting traits is that they should be in some way relevant to the
appraisee’s job.
Advantages
The greatest advantage of rating scales is that they are structured and
standardised. This allows ratings to be easily compared and contrasted - even for entire
workforces.
Each employee is subjected to the same basic appraisal process and rating
criteria, with the same range of responses. This encourages equality in treatment for all
appraisees and imposes standard measures of performance across all parts of the
organization.
Rating scale methods are easy to use and understand. The concept of the rating
scale makes obvious sense; both appraisers and appraisees have an intuitive
appreciation for the simple and efficient logic of the bipolar scale. The result is
widespread acceptance and popularity for this approach.
Disadvantages
Trait Relevance
Are the selected rating-scale traits clearly relevant to the jobs of all the
appraisees? It is inevitable that with a standardised and fixed system of appraisal that
certain traits will have a greater relevance in some jobs than in others.
For example, the trait “initiative” might not be very important in a job that is
tightly defined and rigidly structured. In such cases, a low appraisal rating for initiative
may not mean that an employee lacks initiative. Rather, it may reflect that fact that an
employee has few opportunities to use and display that particular trait. The relevance of
rating scales is therefore said to be context-sensitive. Job and workplace circumstances
must be taken into account.
Performance appraisal is one of the most important requirements for all successful
business and human resource policy (Kressler, 2003). Rewarding and promoting
effective performance in organization, as well as identifying ineffective performers for
resource management (Pulakos, 2003). The ability to conduct performance appraisal
relies on the ability to assess an employee's performance in a fair and accurate manner.
Evaluating employee performance is a difficult task. Once the supervisor understands
the nature of the job and the source of information, the information needs to be
collected in a systematic way, provided as feedback, and integrated into the
organization's performance management processor use in making compensation, job
placement and training decisions and assignment (London, 2003). Performance
evaluations have been conducted since the times of Aristotle (Landy, Zedeck, Cleveland,
1983). The earliest formal employee performance evaluation program is thought to
have originated in the United States military establishment shortly after the birth of the
republic (Lopez,1968). The measurement of an employee's performance allows for
rational administrative decisions at the individual employee level. It also provides for
the raw data for the evaluation of the effectiveness of such personnel-system
components and processes as recruiting policies, training programs, selection rules,
promotional strategies, and reward allocations (Landy, Zedeck, Cleveland, 1983).In
addition, it provides the foundation for behaviorally based employee counseling. In the
counseling setting, performance information provides the vehicle for increasing
satisfaction, commitment, and motivation of the employee. Performance measurement
allows the organization to tell the employee something about their rates of growth, their
competencies, and their potentials. There is little disagreement that if well done,
performance measurements and feedback can play a valuable role in effecting the
organization (Landy, Zedeck, Cleveland, 1983).
BASIC PURPOSE
Employee learns of his or her own strengths in addition to weaknesses. New goal and
objectives are agreed upon. Employee is an active participant in the evaluation process.
The relationship between supervisor and employees is taken to an adult-to-adult level.
Work teams may be restructured for maximum efficiency. Employee renews his or her
interest in being a part of the organization now and in the future. Training needs are
identified. Time is devoted to discussing quality of work without regard to money issues
Supervisor becomes more comfortable in reviewing the performance of employees.
Employees feel that they are taken seriously as individuals and that the supervisor is
truly concerned about their needs and goals. (Randi, Toler, Sachs, 1992).
PITFALLS TO AVOID
LEGAL IMPLICATIONS
Performance appraisal system are "homework" that provides the information you need
in order to make appropriate administrative recommendations, hold meaningful 17
Research in common parlance refers to search for knowledge. Redman and Mory define
research as a “Systematized effort to gain new knowledge. Research is an academic
activity and such the term should be used in technical sense. According to Clifford
Woody, Research comprises defining and redefining problem, formulating hypothesis or
suggested solutions; collecting, organizing and evaluating data; making deductions and
research conclusions; and at last carefully testing the conclusions to determine whether
they fit the formulating hypothesis. Research is thus an original contribution to the
existing stock of knowledge making for its advertisement. It is pursuit of truth with the
help of study, observation, comparison and experiment. In short the search for
knowledge through objective and systematic method of finding solution to problem is
research.
RESEARCH DESIGN
A Research design is the arrangement of conditions for collection and analysis of data in
a manner that aims to combine relevance to the Research purpose with economy in
procedure. In fact the Research design is the conceptual structure within which
Research is conducted: it constitutes the blueprint for the collection measurement and
analysis of data. It must be able to define clearly what they want to measure and must
find adequate methods for measuring it along with a clear cut definition of population
wants to study. Since the aim is to obtain complete and accurate information in these
studies, the procedure to be used must be carefully planned. The research design must
make enough provision for protection against bias and must maximize reliability with
due concern for the economical completion of the search study.
Descriptive research is adopted for this study. It includes surveys and fact finding
enquires of different kinds. The major purpose of descriptive research is description of
the state affairs as it exists at present. The main characteristic of this method is that the
researcher has no control over the variables. He can only report what has happened or
what is happened.
SAMPLING DESIGN
A sample design is a definite plan for obtaining a sample from the sampling frame, it
refers to the technique or procedure the researcher would adopt in selecting some
sampling units from which interferences about the population is drawn. Sampling type
used is Simple Random sampling technique.
DATA COLLECTIONS
For achieving the specific objectives of this study, data were gathered from both
primary and secondary sources.
Primary Sources
• Observation of HR activities.
Secondary Sources:
• Different newsletters.
STATISTICALTOOLS
Chi-square test
Percentage analysis
CHI-SQUARE TEST
The Chi-square test is an important test amongst the several tests of significance
developed by statisticians. Chi-square is a statistical measure used in the context of
sampling analysis for comparing a variance to a theoretical variance. As a non-
parametric test, it can be used to determine if categorical data shows dependency or the
two classifications are independent. The test is, in fact, a technique through the use of
which it is possible for all researchers to
As a test of independence, test enables us to explain whether or not two attributes are
associated. In such a situation, we proceed with the null hypothesis that the two
attributes are independent. If the calculated value is less than the tabulated value at
certain degrees of freedom, the null hypothesis is accepted and vice versa.
is calculated as follows:
is always positive.
The test depends on the set of observed and expected values and on the degrees of
freedom. The distribution is the limiting approximation designation. 4.4.2 PERCENTAGE
ANALYSIS It refers to a special kind of ratio. Percentage is used in making comparison
between two or more series of data; percentages are used to determine relationship
between the series if data finding the relative differences becomes easier through
percentage. It is expressed as, Percentage (%) = No. of respondents x 100 Total no. of
respondents
DATA ANALYSIS AND INTERPRETATION
Male 89 89
Female 11 11
Total 100
INTERPRETATION: From the above table, it can be inferred that 89% of the respondents are
male and 11% of the respondents are female.
AGEWISE CLASSIFICATION OF RESPONDENTS
20-25Age 25 25
30-35Age 33 33
40-45Age 30 30
Above-45Age 12 12
INTERPRETATION:
From the above table, it can be inferred that 33% of the respondents are in the age of 30-35,
30% of the respondents are in the age of 40-45, 25% of the respondents are in the age of 20-25
and 12% of the respondents are in the age above 45.
Below 5Years 28 28
5-lO Years 54 54
10-15 Years 18 18
Above15Years - -
Sources: Primary Data INTERPRETATION: From the above table, it can be inferred that 54% of
the respondents are having 5-10years experience persons, 28% of the respondents have below
5Years of experience persons, 18% of the respondents are having 10-15years of experience and
no respondents have experience more than 15years.
UG degree 49 49
PG degree 19 19
Engineering 04 04
Other ITI 28 28
Sources: Primary Data INTERPRETATION: From the above table, it can be inferred that 49% of
the respondents are UG degree holders, 28% of the respondents are some others (ITI), 19% of
respondents are PG degree holders and 4% of the respondents are engineering graduates.
Twice a Year - -
No Specific Time - -
Sources: Primary Data INTERPRETATION: From the above table, it can be inferred that 100% of
the respondents agree that performance appraisal is conducting once a year.
To identity motivating - -
methods
To decide monetary - -
benefits
Identifying barriers of - -
performance
Sources: Primary Data INTERPRETATION: From the above table, it can be inferred that 100% of
the respondent's agree that the reason for conducting performance appraisal includes all the
factors such as to identity motivating methods, to decide monetary benefits and identity
barriers for performance.
DURATION OF PERFORMANCE APPRAISAL CONDUCTED
During non-working 13 13
hours
Sources: Primary Data INTERPRETATION: From the above table, it can be inferred that for 87%
of the respondents' performance appraisal is conducted during working hours and for 13%
respondents' performance appraisal is conducted during non-working hours.
Superior - -
Peers - -
Everyone - -
Sources: Primary Data INTERPRETATION: From the above table, it can be inferred that for 100%
of the respondents’ performance appraisal is conducted by outsiders.
Always 20 20
Sometimes 77 77
Never 03 03
Sources: Primary Data INTERPRETATION: From the above table, it can be inferred that 77% of
respondents feel that the reason for performance appraisal is discussed sometimes, 20% of the
respondent's feel it is discussed always and 3% of respondents say reason is never discussed.
REASONS FOR PERFORMANCE APPRAISAL DISCUSSED
Nil - -
Twice - -
Thrice - -
Sources: Primary Data INTERPRETATION: From the above table, it can be inferred that for 100%
of the respondents meeting on performance is conducting once a year.
100 100
100
90
80
70
60
No. Of Respondents
50
Percentage (%)
40
30
20
10
0 0 0 0 0 0
0
Nil Once Twice Thrice
PERFORMANCE APPRAISAL PROGRAMS RELATEDWITH ORGANIZATIONAL GOALS
To a high extent 12 12
To some extent 69 69
To a low extent 19 19
Sources: Primary Data INTERPRETATION: From the above table, it can be inferred that 69% of
the respondents feel the performance appraisal relates to some extent to organization goals,
19% feel to a low extent and12% feel to a high extent it relates.
Always - -
Sometimes - -
Sources: Primary Data INTERPRETATION: From the above table, it can be inferred that 100% of
the respondents say they are never involved in designing the appraisal system.
100 100
100
90
80
70
60
No. of Respondents
50
Percentage (%)
40
30
20
10
0 0 0 0
0
Always Sometimes Never
PERFORMANCE APPRAISAL RELEVANCE TO EMPLOYEE JOB
1 Highly relevant 87 87
2 Relevant 13 13
3 No idea - -
4 Irrelevant - -
5 Highly irrelevant - -
Sources: Primary Data INTERPRETATION: From the above table, it can be inferred that 87% of
the respondents feel that performance appraisal is highly relevant to employee job and 13% feel
it is relevant.
TRAINING OF FILL UP PERFORMANCE APPRAISAL FORM
No - -
Sources: Primary Data INTERPRETATION: From the above table, it can be inferred that 100% of
the respondents are given training to fill the appraisal form.
100 100
100
90
80
70
60 Yes
50 No
40
30
20
10 0 0
0
No. of respondents Percentage
APPRAISER'S AWARENESS ON EMPLOYEE JOB RESPONSIBLITIES AND DUTIES
Completely Aware - -
Aware to an extent - -
Sources: Primary Data INTERPRETATION: From the above table, it can be inferred that 100% of
the respondents feel that the appraiser is not aware of their job responsibilities and duties.
100 100
100
90
80
70
60
No. of respondents
50
Percentage (%)
40
30
20
10
0 0 0 0
0
Completely Aware Aware to an extent Not Aware
FINDINGS
The study is focused on a very general level rather than a full scale detailed report.
The study is not necessarily the solution to the problem that exists.
There were a lot of breaks and hindrances while the study took place.
Books:
Journals:
Websites Visited:
www.jkorg.in
www.google.com
www.answers.com
www.wikipedia.org
ANNEXURE
1. GENDERWISE CLASSIFICATION OF RESPONDENTS
Male
Female
20-25Age
30-35Age
40-45Age
Above-45Age
Below 5Years
5-lO Years
10-15 Years
Above15Years
4. EDUCATIONAL QUALIFICATIONS OF RESPONDENTS
UG degree
PG degree
Engineering
Other ITI
Once a Year
Twice a Year
No Specific Time
Superior
Peers
Everyone
Outsider
7. Informed reason for No. Of Respondents Percentage (%)
Performance
appraisal conducting
Always
Sometimes
Never
Nil
Once
Twice
Thrice
To a high extent
To some extent
To a low extent
Always
Sometimes
Never
11. PERFORMANCE APPRAISAL RELEVANCE TO EMPLOYEE JOB
1 Highly relevant
2 Relevant
3 No idea
4 Irrelevant
5 Highly irrelevant
Yes
No
Completely Aware
Aware to an extent
Not Aware
SGBMITS, PATAN ROAD, JABALPUR
A
PROJECT REPORT ON
“A STUDY OF PERFORMANCE APPRAISAL
SYSTEM ON IDEA CELLULAR SERVICES”
in partial fullfillment for the Award of degree of
Master of Business Administration
in Rani Durgavati Vishwavidhyalya Jabalpur
SUBMITTED TO
SESSION 2014-15
SGBM ITS COLLEGE PATAN JABALPUR
(M.P.)
CERTIFICATE
This is to certify that Mr. PARTH PALLAV BILLOREY MBA III Sem student of
SGBM, ITS, COLLEGE, JABALPUR has prepared the project titled “A STUDY
OF PERFORMANCE APPRAISAL SYSTEM ON IDEA CELLULAR
SERVICES ” Jabalpur which is being submitted herewith for the practice of
Partial fulfillment of Master of Business Administration RANI DURGAWATI
VISHWAVIDYALAY Jabalpur for the year 2014-2015.
It has been duly completed as record of bonafide work in practice of, MBA
HR SGBM, ITS College, Jabalpur (M.P.)
(Principal)
Mr. P.C. SHARMA
SGBM ITS
Jabalpur
CERTIFICATE
SERVICES ” which is being submitted herewith for the award of the degree of
Jabalpur is the result of the original research work completed by PARTH PALLAV
Asstt Professor
SGBM, ITS
Date:-
Place: JABALPUR
DECLARATION
All the data represented in this project is true and correct to the best of my
knowledge and belief. This work has not been submitted for any other
degree exam elsewhere.
Place: JABALPUR
Date:
ACKNOWLEDGMENT
CERTIFICATE
MR.MOHIT VIRMANI
ASSISTANT PROFESSOR
Date :
Place: JABALPUR
DECLARATION
DATE
ACKNOWLEDGEMENT
Date:
Place: Jabalpur
PROJECT REPORT
ON
“performance appraisal in cheverolet”
Report submitted in partial fulfillment of the Requirement
for the degree of
SESSION 2013-14
DEPARTMENT OF MANAGEMENT
CERTIFICATE
This is up to the standard both kin respect of its contents and literacy
presentation for being referred to the examiner.
M.B.A [H.O.D.]
GLOBAL NATURE CARE SANGTHAN’S GROUP OF INSTITUTION,
JABALPUR
CERTIFICATE
CHEVEROLET” is a bona fide work carried out by KRISHNA KANT SHUKLA partial
VISHWAVIDYALAYA JABALPUR .
This record of work is carried out by his under my supervision and guidance. For
academic session 2013-2014 .This is up to the standard both kin respect of its
Project Guide
GLOBAL NATURE CARE SANGTHAN’S GROUP OF INSTITUTION,
JABALPUR
DECLARATION
IN CHEVEROLET” is the result of the original work Carried by me. It has not
been copied from anywhere up to the best of my belief and knowledge. It has
M.B.A. IV Sem
ACKNOWLEDGEMENT
Amit Joy, Mr. Rahul Pathak, Mr. Harpreet Singh(Training & Placement
Cell), Shweta Mam and Richa Mam who has been a constant source of
inspiration For me….I am deeply indebted and obliged to our humble guide
Professor Mr. Herpreet Singh for his valuable guidance. Active criticism,
1. TOPIC DESCRIPTION
2. INTRODUCTION
4. COMPANY PROFILE
5. CONCEPTUAL BACKGROUND
6. RESEARCH METHODOLOGY
8. FINDINGS
9. RECOMMENDATION/SUGGESTIONS
10. LIMITATION
11. CONCLUSION
12. BIBLIOGRAPHY
13 ANNEXURE