CONTENTS

1. Acknowledgement

2. Introduction

3. Telecom History

4. Company Profile

5. Performance appraisal

6. Research methodology

7. Research objective

8. Data collection

9. Data analysis

10. Findings

11. Conclusions

12. Suggestion

13. Questionnaire

14. Bibliography

1
 STUDENT DECLARATION

I, Meenakhsi Tyagi hereby declare that the project report on “A STUDY ON

PERFORMANCE APPRAISAL AT AIRTEL CENTRE” complied and submitted

under the guidance of Miss. Rupal Sharma (H.O.D., Management, RCVGIT,

Ghaziabad) is my original work. The empirical finding in this reports are based on the

annual reports of the company. While preparing this report, I have not copied material

from any report.

MEENAKHSI TYAGI

M.B.A. III Sem

Roll No. – 933470002

2
 ACKNOWLEDGEMENTS

It was a great opportunity for us to work with Bharti Airtel, pioneers in the field of online

trading and the retail broking arm of Bharti Airtel, Noida. I am extremely grateful to

those who have shared their expertise and knowledge with me and without whom the

completion of this project would have been virtually impossible.

Firstly, I would like to thank my project guide Mr. Mukul Raghav, H.R. Manager,

Bharti Airtel Centre, United World Cyber Work, Noida, who has been a constant

source of inspiration for me during the completion of this project. He gave me invaluable

inputs during our endeavor to complete this project.

I am also extremely grateful to Miss. Rupal Sharma , H.O.D., Management, RCVGIT,

Ghaziabad. To have given me this opportunity to work with him and gain valuable

insights into the enticing world of online share trading.

I am indebted to all staff members of Bharti Airtel, Noida for their valuable support and

cooperation during the entire tenure of this project. Not to forget, all those who have kept

my spirits surging and helped me in delivering my best.

Meenakhsi Tyagi

M.B.A. III Sem.

3
 TELECOM HISTORY

With the dramatic changes in interpersonal communication over the past decade,

Internet messaging has emerged as the primary medium for transferring information

quickly, inexpensively, and reliably. However, the growing popularity of wireless

telephones has added another dimension to the communications equation—mobility. As

more Indians rely on cellular communication, this market is expected to see explosive

growth over the forecast period.

Let’s have a review of telecommunication History:-

Telecom history

1842: Wireless by conduction

1843: Early electromagnetic research, wireless by induction

1865: Induction and Dr. Loomis

Early radio discoveries

1879: D.E. Hughes and the first radio-telephone reception

1880: The photo phone and the first voice radio-telephone call

1880 to 1900: Radio development begins in earnest

1910: The first car-telephone

1924: The first car-mounted radio-telephone

1937: Early conventional radio-telephone development

1982 - The beginning

During the early 1980s, analog cellular telephone systems experienced rapid

growth in Europe, particularly in Scandinavia and the United Kingdom, but also in

4
France and Germany. Each country developed its own system, which was incompatible

with those of others, in equipment and operation. This was an undesirable situation,

because not only was the mobile equipment limited to operation within national

boundaries, but also limited to the market for each type of equipment. This scenario in a

unified Europe was undesirable.

The Europeans realized this early on, and in 1982, the Conference of European

Posts and Telegraphs (CEPT) form a study group called the Group Special Mobile

(GSM) to study and develop a pan-European public land mobile system. The proposed

system had to meet certain criteria, which included:

1. Good subjective speech quality.

2. Low terminal and service cost.

3. Support for international roaming.

4. Ability to support handheld terminals.

5. Support for a range of new services and facilities.

6. Spectral efficiency

7. ISDN compatibility.

Nordic Telecom and Netherlands PTT proposed to the CEPT the development of

a new digital cellular standard that would cope with the ever-burgeoning demands on

European mobile networks. The European Commission (EC) issued a directive which

required member states to reserve frequencies in the 900 MHz band for GSM to allow for

roaming.

5
1986 Main GSM radio transmission techniques were chosen.

1987 September - 13 operators and administrators from 12 areas in the CEPT GSM

advisory group signed the charter GSM (Groupe Spéciale Mobile) MoU "Club"

agreement, with a launch date of 1 July 1991.

The original French name Groupe Spéciale Mobile was changed to Global System for

Mobile communications; but the original GSM acronym remains.

GSM specifications were drafted.

1989 – 1998

In 1989, GSM responsibility was transferred to the European Telecommunication

Standards Institute (ETSI), and phase I of the GSM specifications was published in 1990.

Commercial services started in mid 1991, and by 1993 there were 36 GSM networks in

22 countries, with 25 additional countries like South Africa, Australia and many Middle

and Far East countries opting for GSM. By the beginning of 1994, there were 1.3 million

subscribers worldwide.

The developers of GSM chose an unproven (at that time) digital system, as

opposed to the then standard analog cellular systems like AMPS in the United States and

TACS in the United Kingdom. They had faith in the advancements in compression

algorithms and digital signal processors to allow the fulfillment of the original criteria

and the continual improvement of the system in terms of quality and cost.

The European Telecommunications Standards Institute (ETSI) defined GSM as

the internationally accepted digital cellular telephony standard.

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1990

Phase 1 GSM 900 specifications were frozen

DCS adaptation started.

Validation systems implemented.

First GSM World congress at Rome had 650 participants.

1991

First GSM specification was demonstrated.

DCS specifications were frozen.

GSM World Congress at Nice had 690 participants.

1992

January - The first GSM network operator was Oy Radiolinja Ab in Finland.

December 1992 - 13 networks were on air in 7 areas.

GSM World Congress at Berlin had 630 participants.

1993

GSM was demonstrated for the first time in Africa at Telkom '93 in Cape Town.

Roaming agreements between several operators were established.

By December 1993, 32 networks were on air in 18 areas.

GSM World Congress at Lisbon progressed with 760 participants.

Telkom '93 was held in Cape Town. First GSM systems were shown.

1994

First GSM networks in Africa were launched in South Africa.

Phase 2 data /fax bearer services were launched.

Vodacom became the first GSM network in the world to implement data/fax.

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GSM World Congress at Athens drew 780 participants.

December 1994 -- 69 networks were on air in 43 areas.

1995

GSM MOU was formally registered as an association registered in Switzerland with 156

members from 86 areas.

GSM World Congress at Madrid attracted 1400 participants.

December 1995 - 117 networks were on air in 69 areas.

Fax, Data and SMS roaming started.

GSM phase 2 standardisation was completed, including adaptation for PCS 1900.

First PCS 1900 network was shown live 'on air' in the USA.

Telecom '95, Geneva -- Nokia shows 33.6 kbps multimedia data via GSM.

Namibia goes on-line.

Ericsson 337 wins GSM ‘phone of the year’.

US FCC auctioned off PCS licenses.

8
1996

December 1996 - 120 networks were on air in 84 areas.

GSM World Congress was held in Cannes.

GSM MOU Plenary was held in Atlanta GA, USA.

8K SIM was launched.

Pre-paid GSM SIM cards were launched.

Bundled billing was introduced in South Africa.

Libya goes on-line.

Option International launches the world's first GSM/Fixed-line modem.

2006

Feb -- GSM Conference held in Cannes.

By May 2006 there were 500m GSM 900/1800/1900 users worldwide.

16 billion SMS messages were sent in April 2006.

By April, 500 million people are GSM users.

Telecom Sector … Striving Through

Telecom has undoubtedly emerged as the most important industry in India during the past

five years. Liberalization ushered in multiple players and deregulation saw new power

brokers emerging in the telecom industry. The growth of cellular telephony, Internet

access, WLL (M), and the recent divestment of government stake in VSNL- have all

resulted in a telecom market characterized by dynamism and cut-throat competition.

Quality of service apart, the two key strategies that any telecom player—dominant or

nascent needs to follow are:

Acquire customers rapidly and

9
Retain them with aggressive efforts.

Government was seen hyperactive in the year 2000. We saw series of policy

announcements in the telecom sector. In the following paragraphs we have attempted to

encapsulate the major events of the year.

10
Cellular

Cellular telephony saw lot of action in the year that passed by. Equity in some of the

operators changed hands with the consequent change in management, several new

technologies became the subject of discussions and some very significant policy

decisions were made.

Mergers and Acquisition

In the year that went past, there was lot action in the cellular field with respect to mergers

and acquisition. The sector had the operators consolidate their positions with acquisition

and increased competition. The year had several acquisitions, Hutchison Max Telecom's

equity acquisition in Fascel and Usha Martin Telekom Limited, the operators in Gujarat

and Calcutta (Kolkotta). RPG's cellular operations have been acquired by Birla-AT&T-

Tata combine. AIRTEL, Hutchison, Birla-AT&T and Escotel are in the race to acquire

the operations of RPG group's Chennai license. AIRTEL is the highest bidder has bid in

excess of $200mn for the Chennai operations of RPG group. Thus demonstrating the

action in the merger and acquisition field. The moves are being fueled by the need for

consolidation in the industry.

The third and fourth operator

DoT has allowed the entry of the third operator in the form of BSNL (all over India,

excluding Delhi and Mumbai) and MTNL (in Delhi and Mumbai). DoT also plans to

auction the license for the fourth operator. The entry of the BSNL/MTNL and the fourth

11
operator would help increase the competition further and thus improve tele-density in the

country.

BSNL and MTNL's cellular has been getting delayed month after month and is now

slated to be launched in January for MTNL and in August/ September for BSNL.

CHALLENGES IN THE INDIAN TELECOM INDUSTRY

The India is the fastest growing market in the world. No other world market has seen this

pace of development. The six big players in the Indian telecom industry – BSNL,

Reliance Infocomm, Bharti Tele-Ventures, Hutchison, Tata Teleservices and Idea cellular

– are clearly hunkering down for the big challenge ahead. All of them are aware that their

long term sustainability depends squarely on how large a share of the growing market

they can garner. In the near future the challenges will be:

 Funding the growth

 Increasing market share

 Developing new applications

 Keeping network cost down

 keeping balance between high growth & high margin of the product in their portfolio

12
 COMPANY PROFILE

Introduction

As we spread wings to expand our capabilities and explore new horizons, the

fundamental focus remains unchanged: seek out the best technology in the world and put

it at the service of our ultimate user: our customer."

Sunil Bharti Mittal (Chairman and Group Managing Director)

Bharti Tele-Ventures Limited was incorporated on July 7, 1995 for promoting

investments in telecommunications services. Its subsidiaries operate telecom services

across India. Bharti Tele-Ventures is India's leading private sector provider of

telecommunications services based on a strong customer base consisting of

approximately 8.37 million total customers which constitute, approximately 7.67 million

mobile and approximately 704,000 fixed line customers, as of June 30, 2004.

Focus on telecommunications to enable the Company to better anticipate industry trends

and capitalise on new telecommunications-related business opportunities;

The strong brand name recognition and a reputation for offering high quality service to its

customers;

Quality management team with vision and proven execution skills; and

The Company's strong relationships with international strategic and financial investors

such as SingTel, Warburg Pincus, International Finance Corporation, Asian Infrastructure

Fund Group and New York Life Insurance.

BUSINESS STRATEGY

Bharti Tele-Ventures' strategic objective is

13
“to capitalise on the growth opportunities that the Company believes are available in the

Indian telecommunications market and consolidate its position to be the leading

integrated telecommunications services provider in key markets in India, with a focus on

providing mobile services”.

The Company has developed the following strategies to achieve its strategic objective:

 Focus on maximising revenues and margins;

 Capture maximum telecommunications revenue potential with minimum

geographical coverage;

 Offer multiple telecommunications services to provide customers with a "one-stop

shop" solution;

 Position itself to tap data transmission opportunities and offer advanced mobile data

services;

 Focus on satisfying and retaining customers by ensuring high level of customer

satisfaction;

 Leverage strengths of its strategic and financial partners; and

 Emphasise on human resource development to achieve operational efficiencies.

Businesses

Bharti Tele-Ventures current businesses include -

 Mobile services

 Fixed-line

 National and international long distance services

 VSAT, Internet services and network solutions

Competitive Strengths

14
Bharti Tele-Ventures believes that the following elements will contribute to the

Company's success as an integrated telecommunication services provider in India and

will provide the Company with a solid foundation to execute its business strategy:

Nationwide Footprint - As of June 30, 2004, approximately 92% of India's total mobile

subscribers resided in the Company's sixteen mobile circles. These 16 circles collectively

accounted for approximately 56% of India's land mass;

Mobile Division

Bharti Tele-Ventures vision for its mobile business is “To make mobile communications

a way of life and be the customers first choice”.

The mission is to meet the mobile communication needs of the customer through error

free service Innovative products and services and cost efficiency.

The Company’s strategic objective is to consolidate its leadership position amongst the

mobile service providers in India.

The Indian mobile market, according to the COAI, has increased from approximately 1.2

million subscribers as of March 31, 1999 to approximately 29.21 million subscribers as

of June 30, 2004.

Despite this rapid growth, the mobile penetration rate in India, at approximately 2.8% as

of June 30, 2004, is significantly lower than the

average mobile penetration rate in other Asian and international markets. The number of

mobile subscribers in India is expected to show rapid growth over the next four years. By

2006 it is projected at 50 million by COAI and 44 million by Gartner.

Bharti Tele-Ventures believes that the demand for mobile services in India will continue

to grow rapidly as a result of the following factors:

15
· lower tariffs and handset prices over time;

· growth in pre-paid customer category;

· greater economic growth and continued development of India's economy;

· higher quality mobile networks and services; and

· greater variety and usage of value added services.

Bharti Tele-Ventures, through its subsidiary has the licenses to provide GSM services in

all the twenty-two telecom circles in India. It proposes to consolidate all its subsidiaries

providing mobile services under Bharti Cellular Limited.

As of June 30, 2004, approximately 92% of India's total mobile subscriber market resided

in the Company's sixteen mobile circles, which collectively covered only 56% of India's

land mass.

Mobile footprint

The map below depicts the location of, and provides certain information for, Bharti Tele-

Ventures' existing mobile circles in India:

16
17
Mobile Strategy

Capture maximum telecommunications revenue potential with minimum geographical

coverage to maximise its revenues and margins.

Build high quality mobile networks by deploying state-of-the-art technology to offer

superior services.

Use the experience it has gained from operating its existing mobile networks to develop

and operate other mobile networks in India and to share the expertise across all of its

existing and new circles.

Attract and retain high revenue generating customers by providing competitive tariffs,

offering high quality customer support, proactive retention programs and roaming

packages across all of its mobile circles.

Provide affordable tariff plans to suit each segment of the market with a view to expand

the reach, thereby increasing the mobile customer base rapidly.

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Corporate Structure

Bharti Telecom Ltd

Bharti Telecom Ltd, promoted in 1985 by S B Mittal, was set up to manufacture

Electronic Push Button Telephones (EPBT). It is in the business of manufacturing push

button telephones and cordless phones. It is a part of the Bharti Group. The group has

interests in telecom services, both basic and cellular, Internet services, VSAT services

and telecom equipment manufacturing. Bharti BT is in the business of Internet services

under the brand name of "Mantraonline". Bharti Telenet Ltd. in technical collaboration

with Telecom Italia started fixed line telephone operations in the state of Madhya

Pradesh. 20% equity of Bharti Tele-Ventures was placed with EM Warburg Pincus & Co.

Bharti Tele-Ventures Ltd. is the investing company in the Bharti Group. Bharti Tele-

Ventures would be coming out with an offshore float within a year.

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The various subsidiaries of the company are:

 Bharti Tele Ventures

 Bharti Telnet Limited

 Bharti Cellular Limited

 Welldone Impex (India) Limited

 Goa Telecommunications and Systems Limited

 Bharti Telespatial Limited.

BTL, also exports its products to US and other countries. It recently set up an export

division which will help the company participate in global tenders. Some of the

company’s international clients include Sprint, USA and Nepal Telecom, Nepal.

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 AIRTEL

AirTel comes to you from Bharti Cellular Limited - a part of the biggest private

integrated telecom conglomerate, Bharti Enterprises.

Bharti Enterprises has been at the forefront of technology and has revolutionized

telecommunications with its world class products and services. Established in 1976,

Bharti has been a pioneering force in the telecom sector with many firsts and innovations

to its credit. Bharti has many joint ventures with world leaders like Singtel (Singapore

Telecom); Warburg Pincus, USA; Telia, Sweden; Asian infrastructure find, Mauritius;

International Finance Corporation, USA and New York Life International, USA.

Bharti provides a range of telecom services, which include Cellular, Basic, Internet and

recently introduced National Long Distance. Bharti also manufactures and exports

telephone terminals and cordless phones. Apart from being the largest manufacturer of

telephone instruments in India, it is also the first company to export its products to the

USA.

Bharti is the leading cellular service provider, with a footprint in 15 states covering all

four metros. It has over four million satisfied customers.

VISION

"To make mobile communications a way of life and be the customers' first choice."

MISSION

We will meet the mobile communication needs of our customers through:

21
 Error- free service delivery

 Innovative products and services

 Cost efficiency

 Unified Messaging Solutions

The Company’s strategic objective is to consolidate its leadership position amongst the

mobile service providers in India.

Awards:

Consecutively for four years 1997,1998, 1999 and 2000, AirTel has been voted as the

Best Cellular Service in the country and won the coveted Techies award.

The Asia Pacific Award for the Most Innovative HR practices-2000

The Golden Peacock National Training Award for excellence in Training practices-2000

The Golden Peacock National Quality Award-2006

Bharti Values

Innoventuring

• We will generate and implement entrepreneurial and innovative ideas, which will

continuously create new growth engines.

Customer First

• We are committed to delivering service beyond the expectations of the customer. Our

quality of customer responsiveness clearly differentiates us from others.

Performance Culture

• We benchmark our processes and performance against world-class standards. We

distinguish between performers and non-performers by valuing achievement at the

22
individual as well as the team level. Ours is a culture of inclusively where feedback,

learning and ideas are actively encouraged, sought and acted upon.

Valuing Partnership

• We are committed to building exemplary relationship with our partners, which stand on

the principles of mutual trust and mutual growth.

23
Valuing People

• We nurture an environment where people are respected and their uniqueness is valued.

We believe that people are our key differentiators.

Responsible Corporate Citizenship

• We are committed to making a positive and proactive contribution to the community.

As a responsible corporate citizen we will contribute to and abide by environmental and

legal norms.

Ethical Practices

• We will uphold the highest ethical standards in all internal and external relationship. We

will not allow misuse or misrepresentation of any kind.

24
Management Structure

25
 “MANAGEMENT HIERARCHY AT AIRTEL”

"M A N A G E M E N T H IE R A R C H Y "

C H IE F S A L E S A N D M A R K E T IN G O F F IC E R

V IC E P R E S I D E N T V IC E P R E S I D E N T C H IE F G E N E R A L M A N A G E R
M A R K E T IN G S T R A T E G Y S A L E S P L A N N IN G

C IR C L E S A L E S & M A R K E T IN G H E A D

D IS T R IC T O P E R A T IO N H E A D P R E P A ID H E A D C IR C L E M A R K E T IN G H E A D

C H A N N E L O P E R A T IO N M A N A G E R P R E P A ID M A N A G E R M A R K E T IN G S U P P O R T M A N A G E R -A M A R K E T IN G S U P P O R T M A N G E R -B

Footprint In India

26
27
 ACHIEVEMENTS

1995

 Bharti Tele-Ventures Limited incorporated on July 7, 1995

 Bharti Cellular launched mobile services ‘AirTel’ in Delhi

1996

 Bharti Telenet launched mobile services in Himachal Pradesh.

1997

 Bharti Telenet obtained a license for providing fixed-line services in Madhya Pradesh

circle

 Bharti Telecom formed a joint venture, Bharti BT , for providing VSAT services.

1998

 Bharti Telecom formed a joint venture, Bharti BT Internet for providing Internet

services .

 First Indian private fixed-line services launched in Indore in the Madhya

Pradesh circle on June 4, 1998 by Bharti Telenet thereby ending fixed-line services

monopoly of DoT (now BSNL).

1999

 Warburg Pincus (through its investment company Brentwood Investment Holdings

Limited) acquired equity interest in Bharti Tele-Ventures

28
 Bharti Tele-Ventures acquired an effective equity interest in Bharti Mobile (formerly

JT Mobiles), the mobile services provider in Karnataka and Andhra Pradesh circles.

2000

 New York Life Insurance Fund, or NYLIF, acquired a equity interest in Bharti

Cellular

 Bharti Tele-Ventures acquired an effective equity interest in Bharti Mobinet

(formerly Skycell Communications), the mobile services provider in Chennai

 Bharti Tele-Ventures acquired equity interest of Telecom Italia and Bharti Telecom in

Bharti Telenet thereby making Bharti Telenet a 100% subsidiary of Bharti Tele-

Ventures

 SingTel (through its investment company Pastel Limited) acquired STET's equity

interest in Bharti Tele-Ventures

 Bharti Tele-Ventures acquired an additional effective equity interest in Bharti Mobile

resulting in Bharti Tele-Ventures holding an effective 74% equity interest in Bharti

Mobile.

2006

 Bharti Telesonic entered into a joint venture, Bharti Aquanet, with SingTel for

establishing a submarine cable landing station at Chennai

 Bharti Tele-Ventures acquired NYLIF's equity interest in Bharti Cellular

 Bharti Cellular acquired a 100% equity interest in Bharti Mobitel (formerly Spice

Cell ), the mobile services provider in Kolkata

 Bharti Tele-Ventures acquired equity interest in Bharti Cellular from British

Telecom, thereby making Bharti Cellular its 100% subsidiary

29
 Bharti Tele-Ventures acquired an additional equity interest in Bharti Mobinet from

Millicom International and BellSouth International

 Punjab license restored to Bharti Mobile by the DoT and migration to NTP- 1999

accepted

 Bharti Cellular entered into license agreements to provide mobile services in eight

new circles following the fourth operator mobile license bidding process

 Bharti Telenet entered into license agreements to provide fixed-line services in the

Haryana, Delhi, Tamil Nadu and Karnataka circles

 Bharti Telesonic has entered into a license agreement with DoT to provide National

Long Distance Services in India and has been the first service provider to start service

in the country.

 Bharti Aquanet, Bharti Telesonic and Bharti Cellular have entered into license

agreements with the DoT to provide ISP services in India.

2007

 Bharti launched mobile services in Gujarat, Haryana, Kerala, Madhya Pradesh circle,

Maharashtra, Mumbai, Punjab, Tamil Nadu, Uttar Pradesh (West) circle.

 Bharti listed on the National stock Exchange, Bombay Stock Exchange and the Delhi

Stock Exchange on February 18, 2007.

 Bharti entered into a license agreement with the DoT to provide international long

distance services in India.

 Bharti launched fixed-line services in the Delhi, Haryana, Karnataka and Tamil Nadu

license areas.

30
 Bharti became the first private telecommunications services provider to launch

international long distance services.

Strong strategic and financial partners

Bharti Tele-Ventures' existing foreign shareholders have acquired direct and indirect

equity interests in the Company for a total consideration exceeding US$1 billion.

SingTel is one of Bharti Tele-Ventures' key strategic partners and its position as one of

Asia's leading telecommunications service provider gives the Company access to

valuable knowledge in implementing telecommunications projects and to its international

expertise and managerial resources. Bharti Tele-Ventures' other partners include leading

international financial investors such as Warburg Pincus, International Finance

Corporation, the Asian Infrastructure Fund Group and New York Life Insurance.

31
Accomplishments

1999 Pre-4th Post-4th

license license
Number of Mobile Circles 2 5 16
Number of Fixed-Line Circles 1 1 6

Population covered in our licensed area (%) 2% 16% 58%

Area covered in our licensed areas (%) 2% 16% 56%

Wireless Coverage Area(% of Mobile 16% 38% 92%

Customers covered)

The largest private sector integrated telecommunications services group in India in terms

of the number of customers.

Largest Mobile footprint in India, covering 16 of the 22 licensed areas.

Proven track record of managing growth - both organic as well as by way of acquisitions.

32
First and largest private telecommunications services company offering fixed-line

services in India.

Existing foreign shareholders have acquired direct and indirect equity interests in the

Company for a total consideration exceeding US$1 billion.

First private telecommunications company to launch long distance services.

First off the block to launch fixed-line services in all the four circles of Delhi, Haryana,

Karnataka and Tamil Nadu.

Bharti Tele-Ventures, its subsidiaries and management have received several

awards and recognitions, including:

 Bharti was recognized as one of the "Leading Lights of Telecom" in Asia in

November 2006 in the Asian edition of the "tele.com" magazine with analytical

inputs from research consultants Frost & Sullivan.

 The leading telecommunications service provider in India in a survey of Indian

companies conducted by Business World in association with Indian Marketing

Research Bureau in September 2006;

 The “Techies” award from Information Communications World, an international

business magazine, for four consecutive years (1997 to 2000) for brand excellence,

network quality, customer service and value added service in our Delhi mobile circle;

 Golden Peacock National Training Award – 1999 to Bharti Cellular for our Delhi

mobile operations from the Institute of Directors, a non-profit association in India

committed to improving the competitiveness of Indian business by focusing on

development of business leaders, for the best human resources and training practices;

and

33
 Ascent – Times of India and Sodexho Pass award in 1999 from the Asia Pacific HRD

conclave to Bharti Cellular for corporate excellence in the category of most

innovative human resource practices.

 Mr. Sunil Bharti Mittal (Chairman and Group Managing Director) was honoured as "

One of the Top Entrepreneurs Worldwide" for the year 2000 and "Stars of Asia" for

the year 2006 by international business magazine, Business Week.

 Mr Sunil Bharti Mittal was selected as the "Businessman of the year 2007" by

Business India.

 Mr Sunil Bharti Mittal was awarded the “Dataquest IT man of the year 2007”.

 Mr Sunil Bharti Mittal was selected the "CEO of the year 2007" by World HRD

congress.

 Mr. Akhil Gupta (Joint Managing Director) was adjudged as the Chief Financial

Officer for year 2006 The largest private sector integrated telecommunications

services group in India in terms of the number of customers.

The Brand

For a brand to be successful, it must build enduring relationships with its different

audiences. Integral to this relationship is the visual image of the brand the consumer

carries in his/her mind. The Airtel brand image is created through the consistent

application of a carefully developed visual identity, which helps Airtel distinguish itself

in a cluttered market. Airtel's visual identity helps create instant brand recall and

strengthens the relationships that its audiences have with it.

34
 INDIAN TELECOM MASH

The Indian Telecom Sector was monopolistic. The liberalization process was set in since

1991, initially in equipment sector and subsequently in cellular and PSTN sectors. Now

the policy of the Government is for total privatization and private participation to make

Indian telecom sector world class one. Also in software sector also, we see tremendous

potential in the years to come.

Indian Telecom Network is the ninth largest in the world with 3.6 crore telephones.

For the last 10 years the number of basic telephone subscribers has grown more than 6

fold. There were only 5 million in March 1991 but in March 2006 there are 33 million.

The number of telephone lines is growing at the rate of 6 million a year and the growth

rate is consistent In spite of the growth in the number of telephone lines, the waiting list

is steadily growing and the supply was lagging. The telephone penetration rate is about

3.2 per cent, which is much lower than in other countries like China, Egypt, Mexico,

Brazil Philippines and Srilanka.

Development:

India has been busy planning for reliable, state of the art communications infrastructure

to meet the challenges of global economy. The telecom players are getting very

aggressive in expanding their networks. This will result in high capacity backbone

becoming available far and wide. There will be a host of newer services. For many years,

India was just a telecom monopoly. With the exception of North America one or more

government owned telecom operators who concentrated on providing switched telephony

services dominated most nations.

35
Basic switched telephony formed the bulk of operators’ revenue with tariffs directly

proportional to the distances over which calls were carried.

During 1990s a revolution took place in these countries with a move to remove or

minimize state monopolies. There was emergence and development of a vibrant and

global information highway and the new technologies associated with it. New private

operators were allowed to provide increasing new services based on old and emerging

technologies. The Indian Telegraph Act of 1885 focused to regulation of

telecommunications equipment rather than services and applications that such equipment

used for. With the changing environment necessity arose for adoption of a different

methodology to control the emerging industry. The state entered into detailed contracts

with new operators by way of licenses, concessions, grants or authorizations.

Detailed terms and conditions under which operators were allowed to provide telecom

services were specified. But this methodology lacked regulatory certainty.

With the explosive growth of new economy and applications, services and market

players, there was a need for a different legal regime. The regulators in a number of

countries came to an understanding that a third generation structure would need to

incorporate in order to facilitate the development of an information society. These

included minimum regulation, minimum licensing by an independent regulatory body,

self-registration where possible by industry consumer and other groups, transparent and

consultative decision-making, and the adoption of technology in the administrative

process of regulator.

Milestones and Future Directions in Telecom Reforms

1984 : Manufacturing of subscriber terminal equipment opened to private sector.

36
1985 : Telecom was constituted into a separate department (DOT), with a

separate board.

1986 : MTNL and VSNL created as corporations.

1988 : Government introduces in-dialing scheme. PABX services only within a

building, or in adjoining buildings.

1989 : Telecom Commission formed.

1991 : Telecom equipment manufacturing opened to private sector. Major

international players like Alcatel, AT&T, Ericsson, Fujitsu, and Siemens

entered equipment-manufacturing market.

1992 : Value Added Services (VAS) sector opened for private competition.

1993 : Private networks allowed in industrial areas.

1994 : Licenses for radio paging (27 cities) issued.

May-94 : New Telecom Policy announced.

Sep-94 : Broad guidelines for private operator entry into basic services announced.

Nov-94 : Licenses for cellular mobiles for four metros issued.

Dec-94 : Tenders floated for bids in cellular mobile services in 19 circles, excluding

the four metros, on a duopoly basis.

Jan-95 : Tenders floated for second operator in basic services on a circle basis.

Jul-95 : Cellular tender bid opened.

Aug-95 : Basic service tender bid opened; the bids caused lot of

controversy. A majority of bids were considered low.

Dec-95 : Letter of Intent (LOIs) issued to some operators for cellular mobile

operations in circles.

37
Jan-96 : Rebidding takes place for basic services in 13 circles. Poor response. The

Telecom Regulatory Authority of India (TRAI) formed by ordinance.

Oct-96 : LOIs being issued for basic services.

Mar-97 : The TRAI Act passed in Parliament.

Jun-98 : Several VAS available through private operators. The first private basic

service becomes operational.

Mar-99 : Announcement of National Telecom Policy.

Jan-00 : Amendment to the TRAI Act.

Aug-00 : Announcement of Domestic Long Distance Competition Policy.

Oct-00 : Corporatization of DoT.

Apr-01 : Permission to basic operators to provide services within a short distance

charging area

Apr – Dec 2006 Issue of LOIs for new basic service licenses, Issue of LOIs for domestic

long distance service licenses; Issue of LOIs for new cellular service licenses;

Determination of the new interconnection regime for basic and long distance operators;

Parliament's approval to the Communications Convergence Bill

2007-2005 Disinvestments of VSNL; Introduction of competition in international voice

telephony

Regulatory Structure

Prior to liberalization in the 90”s , the DOT acted as a service provider, regulator , &

policy maker & arbitrator in the case of disputes. However, Telecom Regulatory

Authority of India Act , 1997 established Telecom Regulatory Authority Of India

38
(TRAI) in January 1997 , ith a view to providing an effective regulatory framework

&adequate safeguards to ensure fair comptetion in provision of telecom services

&protection of consumer interests. To achieve this objectives of the Act, TRAI was

accorded powers to issue directions to service providers , make regulations, notify tariffs

by order & adjuciate in disputes arising between the Govt. ( in its role as service provider

) and any other service provider.

In 1999,the Govt. created the Deppt. of telecom services (DTS) from DOT.

This was done ostensibly to separate the service provision component (DTS) from that of

policy making (DOT). In October 2000, DTS was corporatised &now operates as

BSNL. The DOT is left with the functions of policy formulation , licensing, wireless

spectrum management , administrative monitoring of telecom PSUs , R&D &

standardization &validation of telecom equipment .Morever, on Jan 2000,an ordinance

amended the TRAI Act,1997 and altered its basic structure .The ad judicatory role of the

TRAI has been separated & has been assigned to a Telecom Dispute Settlement and

Appellate Tribunal (TDSAT) ,a new entity .This Tribunal has also been given the

responsibility for settling disputes with respect to those arising between the licensor &

licensee. Futhermore , appeals against TDSAT judgements will only be entertained in

the supreme court .

39
 PERFORMANCE APPRAISAL

OBJECTIVE OF PERFORMANCE APPRAISAL

Performance Appraisal has following objectives: -

 Help employee overcome his weakness & improve ones his strengths & thus

enable him to improve his performance & that of the Deptt.

 Generate adequate feedback & guidelines form the repotting officers to the

employee.

 Contribution to the growth & development of the employee through helping

him in realistic goal setting.

 Help in creating a desirable culture & traditions in the organization.

 Help identifying employees for the purpose of motivating, training &

developing them.

 Generate significant, relevant, free & valid information about employees.

 Thus, a good Performance Appraisal & review system should primarily focus

an employee development.

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 DEFINITION

Performance appraisal...

 Measuring,

 Evaluating, and

 Influencing an employee’s job-related attributes, behaviors and outcomes.

Historically, performance appraisal was linked to material outcomes with the assumption

that a cut in pay, or a rise, should provide the required impetus for an employee to either

improve or continue to perform well. ...a structured appraisal system is more likely to be 

lawful, fair, defensible, valid and reliable performance appraisal a structured and formal

interaction between a subordinate and his/her supervisor

Let's begin our discussion of performance appraisal by defining the concept.

Performance appraisal is a formal system of measuring, evaluating, and influencing an

employee’s job-related attributes, behaviors and outcomes. The objective is to to

determine how productive an employee is and/or to determine if an employee’s

productivity can be improved. As such, performance appraisals serve an important

purpose in managing people and meeting company goals.

The tendency to make judgments about oneself or about people one is working with,

appears to be both inevitable and universal. However, without a carefully structured

system of appraisal and evaluation, people will judge the performance of coworkers

-- subordinates, superiors, and peers -- arbitrarily and informally. This tendency to judge,

41
without a systematic procedure, has the potential to create serious motivational, ethical

and legal problems within the firm. On the other hand, a structured appraisal system is

more likely to be   lawful, fair, defensible, valid and reliable.

What is the role of performance appraisal?

Performance appraisals telling subordinates how they are doing, and suggesting needed

changes in behaviors, attitudes, skills, or job knowledge. Effective appraisal systems

provide both evaluation and feedback the main aim of the evaluation is to identify

performance gaps feedback is necessary to inform employee about those performance

gaps One of the functions of performance appraisals is to ensure that people are

accountable for their organizational

We have seen from previous discussions, that people are one of a company's most

valuable assets. While most assets depreciate over time, people, viewed as assets, may

actually appreciate. One of the manager's major responsibilities is to improve and update

the knowledge and skills of employees -- appreciation of assets. Performance appraisal

plays a significant role as a tool and technique of organizational development and growth.

In essence, effective appraisal systems provide both evaluation and feedback.

The main aim of the evaluation is to identify performance gaps -- when

performance does not meet the organizational standards -- whereas feedback is necessary

to inform employee about those performance gaps. From the employee's perspective,

performance appraisal informs them about what is required of them in order to do their

jobs, it tells them how well they have achieved those objectives and helps them take

42
corrective action to improve their performance, and, finally, it may reward them for

meeting the required standards.

The firm, on the other hand, needs a performance appraisal system in order to

establish principles of managerial accountability. Clearly, where employees are given

responsibilities and duties, they need to be held accountable. One of the functions of

performance appraisals is to ensure that people are accountable for their organizational

responsibilities.

Perhaps the most significant benefit of performance appraisals is the opportunities they

provide supervisors and subordinates to have one-on-one discussions of important work

issues. During appraisals, subordinates and supervisors can focus on work activities and

goals, identify and correct existing problems, and encourage better future performance.

Performance Appraisal and Motivation

Motivational research has recognized the power of recognition as an incentive

(see Maslow and the Expectancy Theory of Motivation). Performance appraisals provide

employees with recognition for their work efforts.  The appraisal system provides the

supervisor with an opportunity to indicate to employees that the organization is interested

in their performance and development. This recognition can have a positive motivational

influence. on the individual's sense of worth, commitment and AIRTEL onging.

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Performance Appraisal and Training and Development

Performance appraisals identify performance gaps. As such, they provide an

excellent opportunity for a supervisor and subordinate to recognize and agree upon

individual training and development needs. Performance appraisal discussion may

identify the presence or absence of work skills. Further, the need for training can be made

more relevant if attaining the requisite job skills is clearly linked to performance

outcomes. Consolidated appraisal data can also help form a picture of the overall

organizational training requirements.

Performance Appraisal and Recruitment

Recruitment and selection procedures need to be evaluated. Appraisal data can be

used to monitor the success of a firm's recruitment and selection practices. From this

data, the firm can determine how well employees who were hired in the past are

performing.

Performance Appraisal and Employee Evaluation

Employee evaluation is a major objective of performance appraisal. Given the

major functions of management -- planning, organizing, leading and controlling it is clear

that evaluations (controlling) need to be done. At its most basic level, performance

appraisal is the process of examining and evaluating the performance of employees.

However, the need to evaluate is also a source of tension, as evaluative and

developmental priorities appear to clash.  Some management experts have argued that

appraisal cannot serve the needs of evaluation and development at the same time.

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Performance Appraisal and Total Quality Management (TQM)

With the advent of TQM (Total Quality Management) and the extensive use of

teams, traditional performance appraisal systems have come under some criticism. For

example, rather than motivating employees, conflict may be created when appraisals are

tied to merit pay and when that merit pay is based on a forced ranking.

W. Edwards Deming, the founder of total quality management (TQM) has long been

associated with the view that performance appraisals ought to be eliminated. Many TQM

proponents claim that performance appraisals are harmful. However, there is no doubt

that, without safeguards such as appropriate design, adequate administrative support,

comprehensive job analysis / description and training for appraisers, conventional

performance appraisal processes risk becoming just another of the many bureaucratic

rituals supervisors and subordinates must endure.

Performance Appraisal Summary

Performance appraisal, while enabling a manager to identify the training needs of

employees, and evolving training plan for them, also, serves to meet other objectives.

Performance appraisal satisfies the psychological needs individuals have to know how

they are performing their job and increases

Employees’ job satisfaction and morale by letting them know that the manager is

interested in their progress and development. Systematic performance appraisal also

provides the firm and the employee a careful evaluation, rather than a snap judgment of

an employee's performance. Many firms use performance appraisals to plan placements

45
and transfers and to provide input into decisions regarding salary increases, promotions,

and transfers.  Finally, their superiors may use performance appraisals as a basis for the

coaching and counseling of individual employees by their superiors.

Performance appraisals provide a means for informing employees of the quality of

their work and identifying areas of performance that may need improvement

assessing the staff member's adequacy to perform tasks help supervisors maintain

control of the work and make the most effective use of their staff resources a

supportable basis for making personnel decisions

To summarize the uses of performance appraisal:

 Performance improvement

 Compensation

 Placement

 Training & development needs assessment

 Career planning

 Job design error detection

 Detection of external factors influencing job performance

o Performance deficiencies may be due to family or other pressures before

looking at specifics about performance appraisal programs, it might be

useful to examine some deficiencies of existing programs.

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Performance Measures

OBSERVATION

DIRECT INDIRECT

 Rater sees the actual  Rater evaluates substitutes

(constructs) for actual
performance performance
o Less accurate

Comparative Evaluation Methods

 Ranking Methods

 Forced Distributions

 Point Allocation Method

 Paired Comparisons

Rating Scales Summary

As we indicated above, formal appraisal systems are necessary in order to

introduce objectivity into the evaluation process. Rating scales provide appraisers a fairly

high degree of structure. Using rating scales, employee traits and characteristics are rated

on a scale that usually has several points ranging from "poor" to "excellent". For

example, characteristics assessed might include cooperation, communications ability,

initiative, punctuality and technical competence. It is, of course, important that the traits

47
being evaluated be job-related. In designing the scale, the human resource specialist must

make reference to the appropriate job descriptions. Use of inappropriate traits could result

in legal action on the grounds of discrimination.

Using a rating scale, the rater provides a subjective evaluation of an employee's

performance along a scale from high to low. Since the method provides a numerical value

for each dimension or trait, an overall average can be calculated for each employee. The

rating scale is inexpensive and easy to administer.

Advantages of Rating Scales

The greatest advantage of rating scales is that they are structured and

standardized. Thus, ratings can be easily compared and contrasted. Using rating scales,

each employee is rated according to the same basic appraisal process. The process

encourages equality in treatment for all employees. Further, rating scales are easy to

construct, to use and to understand.

Disadvantages of Rating Scales

 Rater biases

 Specific performance criteria may be omitted to make form applicable to a variety

of jobs in the organization

 Descriptive evaluations are subject to individual interpretation

Even though rating scales ought to be constructed with reference to the relevant job

descriptions, questions must be asked about whether or not the selected traits are relevant

48
to the jobs of all the appraises? Often, when efforts are made to standardize an appraisal

form across the entire organization, certain traits that are included will have a greater

relevance for some jobs than 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.

In efforts to standardize the rating instrument, it is possible that factors that an

employee's performance may depend on have not been included in the selected list of

relevant traits. Thus, some employees may end up with ratings that do not fairly reflect

their effort or value to the organization.

Selective perception is the human tendency. Although rating scales are designed to

lend objectivity and empiricism to the evaluation process, it is difficult to eliminate

problems of selective perception (biases and rater inconsistencies).  Similarly, the

reliability of rating instruments may be questioned if different appraisers would interpret

the rating traits (such as, "punctuality") differently. What exactly does "AIRTEL ow

average skill" mean? Different appraisers could very likely interpret this "score"

differently.

Some errors are errors of perception. Other errors may in fact be deliberate. A very

common rating error is that of central tendency. An appraiser, wary of confrontations or

repercussions, may be tempted to give too many passive, middle-of-the-road ratings.

49
Thus the spread of ratings for all employees tends to be clumped around the middle of the

scale.arrative Essay

The essay method of performance appraisal requires the appraiser to prepare a

written statement about employees being appraised. The essay describes specific

strengths and weaknesses in job performance. Further, the essay may suggest actions the

employee might take in order to remedy problem areas identified in the appraisal. The

appraiser alone may write the essay, or it be prepared with input from the employee.

While the rating scale is structured and confining, the narrative essay allows the appraiser

to examine any relevant issue, attribute, or performance. Thus, appraisers are able to

place emphasis on whatever issues or attributes they feel are appropriate. In this sense,

the narrative essay is open-ended and flexible.

Effective Appraisal system (Must have)

 Reliability and validity

 Job - relatedness

 Standardization

 Practical viability ability

 Legal Sanction

 Training to appraisers

 Open communication

50
Reasons for Performance Appraisal Failures

Where performance appraisal fails to work as well as it should, lack of support

from the top levels of management is often cited as a major contributing reason.

Opposition may be based on political motives, or more simply, on ignorance or

disAIRTEL ief in the effectiveness of the appraisal process. It is crucial that top

management AIRTEL ieve in the value of appraisal and expresses their visible

commitment to it. Top managers are powerful role models for other managers and

employees. Those attempting to introduce performance appraisal, or even to reform an

existing system, must be acutely aware of the importance of political issues and

symbolism in the success of such projects.

Fear of Failure

There is a stubborn suspicion among many appraisers that a poor appraisal result

tends to reflect badly upon them also, since they are usually the employee's supervisor.

Many appraisers have a vested interest in making their subordinates "look good" on

paper. When this problem exists (and it can be found in many organizations), it may point

to a problem in the organization culture. The cause may be a culture that is intolerant of

failure. In other words, appraisers may fear the possibility of repercussions - both for

themselves and the appraisee.

That accuracy in performance appraisal is impossible to achieve, since people

play social and political games, and they protect their own interests. "No savvy

manager...” says Longenecker, "... is going to use the appraisal process to shoot himself

or herself in the foot." No matter what safeguards are in place, "... when you turn

51
managers loose in the real world, they consciously fudge the numbers." What

Longenecker is saying is that appraisers will, for all sorts of reasons, deliberately distort

the evaluations that they give to employees.

Indeed, surveys have shown that not only do many managers admit to a little

fudging, they actually defend it as a tactic necessary for effective management. The

fudging motives of appraisers have, at times, a certain plausibility. For instance, a

supervisor who has given an overly generous appraisal to a marginal performer might

claim that their "legitimate" motive was the hope of encouraging a better performance.

On the other hand, fudging motives can a lot less admirable and sometimes

devious: the appraiser who fudges to avoid the possibility of an unpleasant confrontation,

the appraiser who fudges to hide employee difficulties from senior managers, the

appraiser who fudges in order to punish or reward employees.

Judgment Aversion

Many people have a natural reluctance to "play judge" and create a permanent

record, which may affect an employee's future career. This is the case especially where

there may be a need to make negative appraisal remarks. Training in the techniques of

constructive evaluation (such as self-auditing) may help. Appraisers need to recognize

that problems left unchecked could ultimately cause more harm to an employee's career

than early detection and correction. Organizations might consider the confidential

archiving of appraisal records more than, say, three years old.

Employee Participation

52
Employees should participate with their supervisors in the creation of their own

performance goals and development plans. Mutual agreement is a key to success. A plan

wherein the employee feels some degree of ownership is more likely to be accepted than

one that is imposed. This does not mean that employees do not desire guidance from their

supervisor; indeed they very much do.

Performance Management

One of the most common mistakes in the practice of performance appraisal is to perceive

appraisal as an isolated event rather than an ongoing process. Employees generally

require more feedback, and more frequently, than can be provided in an annual appraisal.

While it may not be necessary to conduct full appraisal sessions more than once or twice

a year, performance management should be viewed as an ongoing process.

Frequent mini-appraisals and feedback sessions will help ensure that employees

receive the ongoing guidance, support and encouragement they need. Of course many

supervisors complain they don't have the time to provide this sort of ongoing feedback.

This is hardly likely. What supervisors really mean when they say this is that the

supervision and development of subordinates is not as high a priority as certain other

tasks.

In this case, the organization may need to review the priorities and values that it

has instilled in its supervisory ranks. After all, supervisors who haven't got time to

monitor and facilitate the performance of their subordinates are like chefs who haven't

got time to cook, or dentists who are too busy to look at teeth. It just doesn't make sense.

If appraisal is viewed as an isolated event, it is only natural that supervisors will come to

53
view their responsibilities in the same way. Just as worrying, employees may come to see

their own effort and commitment levels as something that needs a bit of a polish up in the

month or two preceding appraisals.

Performance Appraisal Bias Effects

Gabris & Mitchell have reported a disruptive bias in performance appraisal

known as the Matthew Effect. It is named after the Matthew of biblical fame who wrote,

"To him who has shall be given, and he shall have abundance: but from him who does

not have, even that which he has shall be taken away." In performance appraisal, the

Matthew Effect is said to occur where employees tend to keep receiving the same

appraisal results, year in and year out. That is, their appraisal results tend to become self-

fulfilling: if they have done well, they will continue to do well; if they have done poorly,

they will continue to do poorly. He Matthew Effect suggests that no matter how hard an

employee strives, there past appraisal records will prejudice their future attempts to

improve.

There is other research to support the theory that poor performers might not be

given a fair chance to improve. A study of supervisors in nearly 40 different

organizations found that subordinates tend to be divided into two groups: in-groupers and

out-groupers. This study, by Heneman, Green Berger & Anon you (1989) reported that in

groupers are subordinates who seem to be favored by their supervisors. In their

relationship with the boss, they enjoy "a high degree of trust, interaction, support and

rewards."

54
 On the other hand, out groupers don't do as well. They appear to be permanently

out of favor and are likely to bear the brunt of supervisory distrust and criticism. The

effect is therefore similar to the horns and halo effect; supervisors tend to judge

employees as either good or bad, and then seek evidence that supports that opinion. It

was found that when an in grouper did poorly on a task, supervisors tended to overlook

the failure or attribute to causes such as bad luck or bad timing; when they did well, their

success was attributed to effort and ability.

But when an out grouper performed well, it was rarely attributed to their effort or

ability. And when an out grouper performed poorly, there was little hesitation it citing the

cause as laziness or incompetence. It is not clear how supervisors come to make the

distinction between in groupers and out groupers. Whatever the criteria, however, it is

clearly not objective, equitable or reliable. This bias must inevitably lead to a distortion

of the appraisal process. It must also be a source of frustration for those employees who

are discriminated against. Success. A plan wherein the employee feels some degree of

ownership is more likely to be accepted than one that is imposed. This does not mean that

employees do not desire guidance from their supervisor; indeed they very much do.

Frustration

The extent of this frustration was explored by Gabris & Mitchell. They studied an

organization with a quarterly performance appraisal system. The workforce was divided

into two groups: those who had been given high appraisal results consistently, and those

who had low results consistently. When the groups were asked if the appraisal system

was fair and equitable, 63 per cent of the high performers agreed, compared to only 5 per

55
cent of the lower performers. The groups were asked if their supervisors listened to them.

Of the high performers, 69 per cent said yes, while among the low performers, 95 per

cent said no.

Finally, when asked if their supervisors were supportive, nearly half of the high

performers agreed that they were, while none (nil, zilch, zero!) of the low performers

agreed. Of course, not everyone who gets a poor appraisal result is a victim of

supervisory bias. Nor are all supervisors prone to making the same degree of in-group

and out-group distinction. The effects discussed here are tendencies, not immutable

effects. But to some extent, it appears that certain employees may be unfairly advantaged,

while others are disadvantaged, by bias effects in the judgments of supervisors.

It is a cardinal principle of performance appraisal that employees should have the

chance to improve their appraisal results - especially if their past results have not been so

good. It is a very serious flaw in the process of appraisal if this principle is denied in

practice. There are reasonable steps, which can be taken to limit the effects of supervisory

bias.

Awareness Training

The first line of defence lies in raising awareness of the problem. Supervisors

need to be informed of the types of subtle bias that can interfere with their performance

as appraisers. They need to understand that the in-group / out-group bias, for instance,

reduces the morale and motivation of their subordinates.

Developing Poor Performers

56
 Incentives, financial or non-financial, may offered to encourage supervisors to

make special efforts to help poor performers improve. Supervisory appraisals, for

example, might stress the importance of working with poor performers to upgrade their

performance. The possibilities are extensive.

Retention of Records

Performance appraisal results should not become a permanent part of an

employee's personnel record. Employees should not feel that their employment history

has been forever marred because of a poor appraisal result. If appraisal records are to be

retained for long periods of time, they should be securely archived and access to them

restricted. New supervisors should not be permitted to review records that are older than

a few years. Employees should have the chance to make a new impression.

Counseling, Transfer, Termination

There is always the possibility that an employee who receives poor appraisal

results is in fact a chronic poor performer of course, no employer is bound to tolerate

poor performance forever. Consistently poor appraisal results will indicate a need for

counseling, transfer or termination. The exact remedy will depend on the circumstances.

Common Appraisal System Faults

Some of the most frequent faults employees find with performance appraisal systems are:

1. The reported evaluations tend to be non-specific (generalities cannot help an

employee make improvement)

57
 2. The comments in the appraisal document are inconsistent with actual performance

(at least as perceived by the employees) -- the observations lack empirical

evidence

3. The meetings are handled poorly and dominated by superiors who tend to use

one-way communication

4. Little or no constructive suggestions for improvement are made during the

interview

5. Consistent with the observation that superiors frequently engage in one-way

communication, the individual employee has little or no input

6. The process is mechanical and contributes little to either the betterment of the

organization or the employee

Given the faults listed above, the process engenders hostility in the employees

Improving Appraisal Systems

The following suggestions might lead to a more rational performance appraisal process:

 Ensure that all employees are subject to evaluation (from the president/manager

down)

o People in the organization will feel more commitment to the performance

evaluation process if the supervisors who give appraisals will also be

judged

58
 The appraisals ought to be spread out throughout the year

 Supervisors faced with a pile of appraisals at any one period of time will feel

overwhelmed and will likely not do a good job because they are rushed

 Legal considerations and confidentiality issues must be considered

o Policies with respect to where the appraisals will be kept and who has

access to them must be implemented

 Self-evaluation should be encouraged as part of the process

o This procedure may invite disagreement

o Most people rate themselves the same or lower than their manager will

o Another benefit of self appraisal is that managers frequently don't know all

that's required to get the job done -- the manager thus learns more about the

organization by reading the employees' self-evaluation

 Have peers conduct reciprocal reviews

 Have subordinates evaluate their superiors

 Establish a clear relationship between salary increments and performance

appraisals

 Establish a policy to determine how much of the review will be based on personal

observation and interaction, and how much will rely on input received from others

-- make sure all employees are aware of this policy

59
 Publicize which performance appraisal methodology you intend to use:

o Management by objectives

o Essays

o Graphic rating scales

o Weighted checklists

o Behavioral anchored ratings

o Forced choices

o Critical incidents

o Rankings

o Paired comparisons

 Consider using external sources of information -- customers, clients

 Use performance appraisals as a chance to clarify or communicate the intent of

the employees' job descriptions

 Use performance appraisals as a chance to revise job descriptions -- the interview

may make it clear that the job description is inconsistent with tasks actually

required of the employees

 Include objectives for the coming year in the performance appraisals

60
  Follow up on the performance appraisal recommendations

360-degree Performance Appraisal: Evaluating Employees From All Angles

Traditional performance appraisals, as discussed above, can be both subjective

and simplistic. At times, they can also be deemed to be "political". In an attempt to

improve this methodology, some companies have turned to 360-degree appraisals. 360

appraisals pool feedback from a department's internal and external customers to ensure a

broader, more accurate perspective of an employee's performance. 360-degree

performance appraisal is an attempt to answer the question: "How can a supervisor

evaluate an employee he or she sees only a few hours each week?"

Using internal and external clients:-

360-degree performance appraisals offer an alternative by which organizations

may gain more useful performance information about employees. Because all

clients/customers an employee comes into contact with can conceivably have input into

the performance appraisal, this methodology can also makes them more accountable to

their customers. Using a courtroom metaphor, one could say that, rather than having a

single person play judge, a 360-degree appraisal acts more like a jury. People who

actually deal with the employee each day have an opportunity to create a pool of

information from which the appraisal is written. Internal clients may include supervisors,

subordinates, co-workers, and representatives from other departments. External

customers may include clients, suppliers, consultants and customers.

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Perceived fairness:-

Given the use of a wide variety of sources for information in the 360-appraisal

process, this method provides a broader view of the employee's performance. Frequently,

the employee on whom the appraisal is being done (the ratee) will feel that the process is

more fair.

Validity

Very often, an employee's peers know their behaviors best. Consequently,

employees cannot hide as easily in 360-degree appraisals.

Employee development

360-degree appraisal enables an employee to compare his or her own perceptions

of their work performance with the perception of others. As such, the method facilitates

employee self-development. Feedback from one's peers is more likely to lead to changed

behaviors.

Accountability to customers

A 360-degree appraisal process provides a formalized communication link

between the employee being evaluated and their customers. These people now have

feedback into the employee's performance rating. As such, the process is likely to make

the employee more accountable to his or her various internal and external customers.

Furthermore, organizations can also use this feedback to create more customer-oriented

goals for the following year.

62
The raters: how many and who?

One issue employers must solve in implementing a 360-degree appraisal program is

determining how many raters should be involved. Next, the organization must decide

who should do the rating. Generally speaking, less than five raters limits the perspective

while more than ten raters is likely to make the appraisal system complex and time

consuming. A firm would be well advised to develop a workable definition of what

constitutes a peer, an internal customer, an external customer, a supervisor, etc. For

example, to be useful, the customer ought to be one who has significant interactions with

the ratee.

Some organizations permit the ratee to develop a list of key internal and external

customers that he or she interacts with. The ratee then recommends five to ten of these

individuals to serve as raters. In this process, the supervisor still retains the ultimate

responsibility for the appraisal and therefore ensures that appropriate raters are selected.

The ratee is thus prevented from stacking the deck with supportive customers. Another

option has the raters selected at random from the ratee's team by a computer-generated

system. Those selected are then notified by E-mail to participate in the appraisal.

Limitations on the use of external clients

An organization contemplating the use of the 360-degree process must keep in

mind that reviewing that organization's employees' performance is not the customer's

business. To ensure the customers' cooperation, the process should be a mutually

beneficial process. Furthermore, the various external customers would ideally evaluate

63
the ratee only on the behaviors or work incidents that they have directly observed. This,

of course, also holds for internal raters.

Summarizing the data

Once all raters have supplied their appraisals, the employee's supervisor is

generally responsible for summarizing the data and determining the final performance

rating. After summarizing the data, the supervisor conducts the formal appraisal

interview with the ratee. Another variation of the summary process makes the ratee

responsible for summarizing the feedback data from the raters. The ratee then submits a

summary analysis to his or her supervisor. The ratee and the supervisor then meet to

determine the ratee's final performance rating and development plan.

Rater confidentiality

Organizations must decide whether the feedback from the various raters should be

kept anonymous or be identified to the employee. Sometimes raters give fuzzy feedback

because of the fear that the feedback might come back to them. One rule might be that no

rater can give negative feedback in the appraisal unless that rater has previously given the

feedback directly to the ratee. Most organizations should start with a policy of

confidentiality until sufficient understanding, maturity and organizational trust is

achieved.

Prescriptions for legally defensible appraisal systems...

 System should be formal

 Appraisal should be based on job analysis

64
 Rating should be on specific work dimensions rather than on overall or global

measures

 Performance standards must be communicated to employees

 Raters should be trained

 Evaluators should be given specific, written instructions about the standards and

the process

 Use more than one independent evaluator of performance

 Evaluators must have ample time to evaluate performance

 Use objective data whenever possible

 Data should be empirically validated

 Procedures for appraisal must not differ as a function of race, sex, color, national

origin, marital status, or age

 Avoid ratings on traits, personality, or aptitude

 Behavioral documentation should be given for extreme ratings (critical incidents)

 Employees should be given an opportunity to review their appraisals

 A formal appeal system should be available

65
Appraisal Methods

In a landmark study, Locher & Teel (1977) found that the three most common

appraisal methods in general use are rating scales (56%), essay methods (25%) and

results- oriented or MBO methods (13%). For a description of each, follow the button

links on the left. Certain techniques in performance appraisal have been thoroughly

investigated, and some have been found to yield better results

Encourage Discussion

Research studies show that employees are likely to feel more satisfied with their appraisal

result if they have the chance to talk freely and discuss their performance. It is also more

likely that such employees will be better able to meet future performance goals.

Employees are also more likely to feel that the appraisal process is fair if they are given a

chance to talk about their performance. This especially so when they are permitted to

challenge and appeal against their evaluation.

Constructive Intention

It is very important that employees recognize that negative appraisal feedback is

provided with a constructive intention, i.e., to help them overcome present difficulties

and to improve their future performance. Employees will be less anxious about criticism,

and more likely to find it useful, when the AIRTEL ieve that the appraiser's intentions are

helpful and constructive. In contrast, other studies have reported that "destructive

criticism" - which is vague, ill-informed, unfair or harshly presented - will lead to

problems such as anger, resentment, tension and workplace conflict, as well as increased

resistance to improvement, denial of problems, and poorer performance.

66
 RESEARCH METHODOLOGY

Research methodology is a systematic way, which consists of series of actions or steps

necessary to effectively carry out research and the desired sequencing of these steps. The

research is a process of involves a number of interrelated activities, which overlap and do

rigidly follow a particular sequence. It consists of the following steps

 Formulating the objective of the study

 Designing the methods of data collection

 Selecting the sample plan

 Collecting the data

 Processing and analyzing the data

 Reporting the findings

67
 Objective of Study

Research Design

Sample Design

Data Collection

Data Analysis

Reporting of Findings

68
 RESEARCH OBJECTIVES

 To study of about Performance Appraisal System of AIRTEL.

RESEARCH DESIGN

Research design specifies the methods and procedures for conducting a particular

study. A Research design is the arrangement of conditions for collection and analysis of

the data in a manner that aims to combine relevance to the research purpose with

economy in procedure. Research Design is broadly classified into three types as

Exploratory Research Design

Descriptive Research Design

Hypothesis testing Research Design

On the basis of the objective of study, the study which is concerned with describing the

characteristics of a particular individual or of group of individual under study comes

under Descriptive Research design.

69
Descriptive Research Design:-

In this research design the objective of study is clearly defined and has accurate method

of measurement with a clear-cut definition of population that is to be studied.

To steps are involved in formulating the research problem:

 Understanding the problem.

 Rephrasing the problem into meaningful terms form an analytical

point of view.

The training sessions are conducted in the beginning of training in order

To make us clear about the tasks provided and how handle the different situation

The research design used in this study is descriptive which includes interviewers.

Questionnaire and unit fact-findings enquiries with the employees

SAMPLING:

Sample is Researcher collect needed information from various persons who are

associated with this subject. When such associated persons are in new number research

can get information from all of them in such some people among associated persons are

selected and collect information from them. These selected persons represent the whole

universe and are called sample.

Sampling unit

The sampling for this research was AIRTEL Employees were available for interview.

Sampling frame

Sampling frame for this survey was least 100 officers & 100 workmen’s

70
Sampling size

Sample size for the objective (Performance Appraisal system) sample size cover for the

various departments such as

Questionnaire Design

The questionnaire for this survey includes both open ended and close ended questions.

Why questionnaire

Now a days questionnaire are commonly used to collect data that is specific are crucial to

the success of business venture. With out doubt questionnaire allow to gather information

that can be found else where from say secondary information such as Manuals, Books

and internet resources this is because information collected is fresh and unique.

Questionnaire helps in identifying the following key points.

 Study about Organization’s Performance Appraisal system

 Employee’s awareness about Performance Appraisal system

 Employee’s attitude towards existing Performance Appraisal system

Way of issuing questionnaire

It was personal interview (face to face). It helped in directly asking the question to data

available through this is a time consuming processed interviewers have little time to

think.

Research study

A research study for the project on performance appraisal system this is done through

questionnaire to employees. Research is a systematic and in depth study to find out the

awareness and attitude towards PAR among employees.

71
 COLLECTION OF DATA

The procedure for collection of data depends upon various considerations

Availability of resources like money time manpower etc also affects the choice of

procedure.

Primary data

Direct personal observation

Indirect oral interviews

Information through manuals& websites

Information through questionnaire filled by respondents

Questionnaire

The questionnaire a list of question to be asked from the respondent s the it also

contains a suitable space where the answer can be offered a better questionnaire form,

which has completed, by an interviewer.

Types of questionnaire

Structured – non disguised

Structured – disguised

Non structured – non disguised

Non structured – disguised

Secondary data

Secondary data mean that are already available that is they refer the data which

have already been collected and analyzed by some one else when the researcher utilizes

72
secondary data that has to look into various sources where he can obtain. In this case he

certainly not confronted with the problems that are usually data nor unpublished data

associated data associated with the collection of original data secondary data may either

be published.

73
 TOOLS OF ANALYSIS

Analysis may be categorized as descriptive analysis and (inferential analysis is

often known as statistical analysis)

Descriptive Analysis: -

Descriptive analysis is largely the study of distribution of one variable this study

provide us profile of companies, workgroups and person & other subject on any of a

multitude of characteristics such as size composition.

Correlation Analysis: -

Correlation analysis studs the joint variation two or more variables for

determining the amount of correlation between two or more variable.

Inferential Analysis: -

Inferential analysis is concerned with the various tests of significance for testing

hypothesis in order to determine with what validity data can be said to indicate some

conclusion.

74
 DATA ANALYSIS

DATA WORK SHEET OF OFFICERS

Options  
Question No. (a) % (b) % (c) % (d) % NIL Total persons
1 90 10 0 0 0 100
2 75 15 5 5 0 100
3 34 60 4 2 0 100
4 15 85 0 0 0 100
5 50 30 10 8 2 100
6 95 5 0 0 0 100
7 65 28 2 3 2 100
8 78 10 10 0 2 100
9 42 30 16 10 2 100
10 80 18 0 0 2 100
11 70 20 10 0 0 100
12 65 24 10 0 1 100
13 80 20 0 0 0 100
14 40 10 40 10 0 100
15 52 25 12 10 1 100
16 55 25 10 10 0 100
17 90 10 0 0 0 100
18 20 40 10 30 0 100

75
 DATA WORK SHEET OF WORKMEN

Options  
Questio0n No. (a) % (b) % (c) % (d) % NIL Total persons
1 80 20 0 0 0 100
2 70 20 10 0 0 100
3 10 10 10 70 0 100
4 50 50 0 0 0 100
5 0 100 0 0 0 100
6 78 10 10 0 2 100
7 60 20 15 5 0 100
8 50 30 10 8 2 100
9 80 20 0 0 0 100
10 65 35 0 0 0 100

76
 SWOT ANLYSIS

SWOT is acronym for strengths, weakness, opprtunities and threats.

While a port unities and threats can be identify by environmental analysis strengths and

weakness can be identified by corporate appraisal here these are describe as follows:

 Strenght:

A strength is an internal capability of the organization which it can use to

gain strategic advantage over its competitors.

 Weakness:

 A weakness is an internal limitation or constraints of the organization which creates

strategic disadvantages to it.

 Opportunities:

An opportunity is a favorablel condition in the organization envirnmental which enable it

to strengthen its position.

 Theats:

A threats is an unfavorable condition in the organization environmental

Which cause a risk for damage to the organization position.

77
 QUESTIONNAIRE PRESENTATION WITH PIE CHART

( FOR OFFICERS)

Q:- 1. Self Appraisal System proves to be effective while appraising the appraisee

Question No. 01
0%
0%
10% 1
0%
2
3
4
5
90%

1:- This pie chart is shows about 90% of officers are aware of current performance

appraisal System & 10% are not aware of current PAR System.

Q: - 2 Who in your opinion should be the responsible for ensuring objectivity and

reducing

Question No. 02

5%
5% 1
0%
15%
2
3
4
75% 5

Question No. 18

0% 20% 1
30%
2
3
4
10% 78
40% 5
2:- According to 75% the current P.A. System is two tire System ,according 15%

,Three tire system ,5% four tire system and 5% are not aware current performance

appraisal System.

Q: - 3 Skill possessed by an Appraiser vary as the moves from one grade to another.

Question No. 03

2% 0%
4% 1
34%
2
3
4
60%
5

3:- According to 34% two tire systems consist of appraisee & Appraiser, 60% IA &

RA, 4% HOD & GM & 2% immediate superior & HOD.

79
Q: -4 Are you getting regular feed back on your performance from your Appraisal?

Question No. 04 0%
0%
0%
15% 1
2
3
4
85% 5

4:- About 85% of officers are performance appraisals assessed by point system, 10%

through Mark System 0% are not aware any group.

Q:- 5 Feed back is beneficial for improving your performance

Question No. 05

8% 2%
10% 1
2
3
50%
4
30% 5

5:- About 50% of Officers agree that task Setting provides objectively in appraising

their performance less than 30% of the officers are not fully agree with the statement

10% are neutral & disagree 2% are not fill the questionnaire.

80
Q:- 6 Current “Performance Appraisal” system is an effective tool for evaluating

the employee‘s performance

Question No. 06

0%
0%
5% 0% 1
2
3
4
5
95%

6:- About 95% officers are says yes for completing Quarterly Task setting in time
,rest due to some reason its not completed in time, such cases; lack of seriousness &
ambiguity.
Q:- 7 Does current “Performance Appraisal” system reflect the training need of an

employee?

Question No. 07
2%
3%
2% 1
28% 2
3
4
65%
5

7:- Above 60% of the officers agree that self appraisal system Proves to be effective

& rest of officers do not completely agree with it.

81
Q: - 8 What is your opinion is the relevance “Performance Appraisal” system?

Question No. 08
2%
0%
10% 1
10% 2
3
4
78% 5

8:- About 78% of officers are says that appraiser and appraisee should be responsible

for ensuring objectivity and reducing biasness the “Performance Appraisal system ,10%

are says appraiser & appraisee and peer & 10% says appraiser & appraisee and peer &

subordinate ,2% are not fill the questionnaire.

82
 Q:- 9 The existing “Performance Appraisal” system ensures due recognition

talented employee in terms of promotion, rewards and others

Question No. 09

10% 2% 1
16% 42% 2
3
4
30% 5

9:- More than 40% officers are agree that skill possessed by an officers vary ,30%

are partially agree and 16% are Neutral ,less than 15% are not agree with its.

83
Q: - 10 Do you think that existing “Performance Appraisal” system is help full in

wholesome development of employee?

Question No. 10
2%
0%
0%
18% 1
2
3
4
80% 5

10:- About 80% officers are getting regular feedback on their performance but less

than 20% are not getting regular feedback.

Q:- 11 Are you satisfied with the current “Performance Appraisal” system

Question No. 11

0%
10%
0% 1
20% 2
3
4
70% 5

Q:- 11:- About 70% of officers are agree that feedback is beneficial for improving

their performance ,20% are partially agree and 10% are neutral.

84
Q:- 12 Would you say management is responsible to your

Question No. 12
1%
0%
10% 1
24% 2
3
4
65%
5

12:- 65% of the officers accepts that current PAR is an effective tool for evaluating the

employee performance,20% partially agree with this and 10% are neutral.

85
 Question No. 13
0%
0%
20% 0% 1
2
3
4
80% 5

13:- About 80% of officers are accept that current PAR System reflect the training

need, 20% are not accepts this.

Question No. 14

10% 0%
40% 1
2
3
4
40% 5
10%

86
14:- 40% of the officers consider that the relevance of PAR system in deciding

promotion, 10% are says deciding incentives and 40% agree with training and

development, 10% are accepting the programme succession planning.

Question No. 15

10% 1%

12% 1
2
3
4
52% 5
25%

15:- According to 52% of officers are accepts the existing PAR system ensure due

recognition talented employee in term of promotion ,rewards and others, 28% are

partially agree and 12% are neural ,10% are disagree.

Question No. 16

10% 0%
10%
1
2
3
4
25% 55% 5

87
16:- More than 55% of officers are completely agree that the existing PAR system is

helpful in wholesome development of employee and 25% are partially agree,10%

disagree, 10% are neutral.

Question No. 17

0%
0%
10% 0%
1
2
3
4
5
90%

17:- About 90% of the officers are completely satisfied with the current PAR system,

rest 10% are not satisfied with the current performance appraisal system.

88
 QUESTIONNAIRE PRESENTATION WITH CHART

(FOR WORKMEN)

Q: - 1 Are you aware with the current “Performance Appraisal system” of

AIRTEL .

Question No. 01
3
20%
0% 5
Not
0% 1
aware 4
0% 2
3
4
5
80%
aware

1. About 80 % of workers are aware of current Performance Appraisal system & 20

% are not aware of current PAR System.

89
Q:- 2 The current Performance Appraisal system is?

Question No. 02
0%
20%
1
0%
2
10% 3
70%
4
5

2. According to 70%, the current P.A. System is two-tire system, according 20%,

three tire system, and 10% four-tire system and 5% are not aware current Performance

Appraisal System

90
Q:- 3 Performance Appraisal Of Employee Is Assessed By?

Question No. 03 5
0%
1
10%

2
10% 1
2
4 3 3
70% 10%
4
5

3. About 10% of workers are performance appraisal assessed by point system, 10%

through Mark system 10% grade system and 70% are not aware.

91
Q: - 4 Who in your opinion should be the responsible for ensuring objectivity and

reducing baiasness the “Performance Appraisal” system?

Question No. 04
3
5 0%
0% 4
0%
1
2
2 1
50% 3
50%
4
5

4. About 50 % of workers are says task setting is done by time bound and 50% are not

accepts time bound.

92
 SUGGESTION OF ANALYSIS OF QUESTIONNAIRE

 Suggestion from employees for the effective implementation of PAR system

 Job Description & key Result Areas should be identified & appraisee should be

answered accordingly.

 While doing job Rotation a person’s core competence should be major criteria for

decision.

 Assessment even by peer, subordinates & customers 360 degree PA system should be

implemented in order to make PAR system more focused, rather than relation driven.

 Project based performance & measurements (six sigma in work place & on personal

level) should be encouraged in Appraisal system.

 Ideation & vision statement will interweavn them; strategy, transformation &

leadership should be encouraged & assessed in PAR system.

 Effective need based training programme must be conducted on regular intervals like

time bound task setting is formulated in PAR system, there must also be time made

appraiser equally awakened. This will also help in making the existing PAR system

more effective & purposeful.

 Deptts where work & task are not known, Like-Plant Maintenance & Hospital, PAR

system should be changed because jobs or tasks except regular work can’t be

assigned to individual.

93
 Suggestion point should be considered & implementation total. As seen that the

suggestion are some times ignored by higher authorities. As IA is dealing with

persons whose PAR is filled & knows form very near.

 The present PAR system may be quite effective provide the weakness strengths

training requirements improvement suggestions are properly monitored for taking

necessary remedial action measures & fro suitable placement in the organization i.e.

right person at right place.

 The task should be reviewed & discussed systematically by IA & RA & necessary

action should also be taken at proper time.

 Ra should take necessary step in fulfilling Appraisee request regarding training, job

rotation.

 Based upon the feedback. The training & Development needs of an individual should

be met & should not be limited only to award promotion.

 There must be a provision that appraisee may come to know the final rating after PRB

i.e. more transparency is required.

 Timely submission of quarterly task may be included to each offer’s task & marks to

be given on that.

 Employees must be given proper knowledge & made aware of PAR system in

AIRTEL .

94
 FINDINGS

 The PAR system has been reviewing time to time to improvise the ways to assess the

effectiveness, potential, development need & career sketch of the individual for the

management to formulate HRD programme into meet organization needs.

 There is problem in collecting the PAR forms back more often the forms were not

received on time. The main problem is therefore of coordination.

 Manager has to perform a very daunting list of time consuming tasks standing with

recalling which worker need to be reviewed each month, arranging appraisal meeting

with them, collection the relevant performance data, filling out the appraisal forms &

documenting the employees performance.

 PA is not actually for workmen it’s basically for the officers. Previously workmen

were judged on the ground of ability, attendance & conduct through gradation system

but this time the new marking system is introduced.

 The culture of confidentiality persists due to which PA will never be a readily

undertaken exercise. Adverse remarks are communicated to employees in writing

confidentially by the reporting officers.

 IA, RA & PRB consist of senior officers than the appraisee. Subordinate, peer,

customer or suppliers are not included in the PA committee. Thus the Appraisal

system is by higher level.

95
 CONCLUSION

Based on the vast study & analysis I can say that the Top management role needs

a tremendous change towards the role of facilitator. Every manager in the organization

hierarchy at his own position has the same role of facilitator. In fact in the present scene.

The managers are facilitators. The role of facilitator has a high demand on individual to

be a continuous learner, i.e. there is a transition from…………………….owner.

………………………Manager ……………………Leader

I conclude that for the LPG (Liberalization, Privatization and Globalization) of

business, Empowerment strengthens the ongoing capacity for successful action under

changing circumstances.

Thus to develop self esteem, organization has to satisfy the employees need for

higher levels of job satisfaction & an overall improved quality of work life consistent will

the dignity of the employees as a human being.

I hope that this project is of utmost value to all who are in this field & I also feel

that the knowledge gained during this training would be helpful to me in future.

96
 SUGGESTIONS

 Workmen PAR should also be developed as of officers & they should be made aware

about it.

 For the technical one column should also be included in the P.A. format which should

concern about the time availability of facilities provisions required for technical

workmen, officers in order to carry out & completion of job if any.

 This would turn make IA / RA equally responsible & transparency in PAR system.

 Emphasis should be given to measuring the employee’s performance i.e. what the

man does rather than what he is (merit rating). The important thing is to be aware of

his strengths. What can he do? And what has he done?

 Self Appraisal system should thoroughly reviewed by the I.A., RA & Senior RA as

the appraisee would not be able to assess themselves but the concerned authorities

assessment of the appraisee should be impartial & up to the mark.

 Extra care must be taken by the authorities while describing the performance of

appraisee, as the attributes used in this section are not the part of specified traits for

technical & non-technical personnel. Not only the deficiency should be pointed out in

this section but if the appraisee have fair better than usual it should also be

mentioned.

97
 Multirater Feedback Mechanism. Regular feedback must be given to employees.

Identify areas for both organizational & individual improvement through 360-degree

process. Promote team building by using this Multirater feedback mechanism

 360-degree appraisal is an excellent means of providing feedback to employees

because it entails obtaining information from more than one group of people. All

those who form the role set member (those who has working relationship will the

appraisee) assess the appraisee on a standard format. The appraisees are taken form

the superiors, subordinates & colleagues. This encourages quality consciousness,

teamwork orientation & more participative.

 “Give a man fish. He will eat it. Train a man to fish. He will his family,” the

technique of training has been a key factor & a major tool used to achieve the

objectives of HRD. Training should be base on an assessment of the needs of

different groups & individuals. The training needs should flow from PAR system.

PAR helps in identifying directions in which individual should be trained &

developed.

 Whenever an individual is sponsored for training he should be told categorically the

reasons for sponsoring him & the expectations of the organization from him after he

return form the programme.

98
 Performance analysis should be made before making any comment. “Performance

Analysis “ is a sound alternative of finding ways & means of improving the employee

organizational performance & identifying development & growth needs.

 A positive emotional & professional climate should be created in workplace for the

employee to progress & review himself through “Performance Review” (feedback &

counseling).

 Virtual HR: HR Deptt. Can automate the PAR system with Internets. They can link

corporate business with the goals of the individual employee & generate meaningful

information from the vast data collected through out the organization.

 The system can save managers the trouble of having to remember a whole lot of

things. Once the manager completes the form, he / she can instantly route it to the

central HR information system where it is stored for all authorized parties to see.

 Such automated systems are very handy in case of 360-degree performance

evaluation. It frees HR Deptt. From needless paper work & allows human resource to

devote its resources to far more important things.

99
 QUESTIONNAAIRE

PERFORMANCE APPRAISAL IN AIRTEL

Designation. ________________Department. ________________

Grade, scale ________________

1. Are you aware with the current “Performance Appraisal system” of AIRTEL .

(a) yes (b) No

2. The current Performance Appraisal system is?

(a) Two tire system (b) Three tire system

(c) Four tire system (d) None aware

3. Two tire system Consist Of

(a) Appraisee &Appraiser (b) Ir & Ra

(c) Hod & Gm (d) Immediate superior & Hod

4. Performance Appraisal Of Employee Is Assessed By

(a) Point system (b) Mark system

(c) Grade system (d) Not aware

Opinion About Features Of Performance Appraisal System

5. Task setting by appraisee and appraiser provides objective while appraising the

performance appraisal of the appraisee

(a) Agree (b) partially agree

(c) Neutral (d) disagree

100
6. Whether the quarterly task setting assignment completed by the 15th of first month

of each quarter if no give the reason

(a) Yes (b) No

7. Self Appraisal System proves to be effective while appraising the appraisee

(a) Agree (b) Partially agree

(c) Neutral (d) Disagree

8. Who in your opinion should be the responsible for ensuring objectivity and

reducing baiasness the “Performance Appraisal” system?

(a) Appraiser and Appraisee.

(b) Appraiser, Appraisee & peer.

(c) Appraiser, Appraisee, peer, & subordinates.

9. Skill possessed by an Appraiser vary as the moves from one grade to another.

(a) Agree (b) Partially agree

(c) Neutral (d) Disagree

10. Are you getting regular feed back on your performance from your Appraisal?

(a) Yes (b) No

11. Feed back is beneficial for improving your performance

(a) Agree (b) Partially agree

(c) Neutral (d) Disagree

Effectiveness of “Performance Appraisal” system

12. Current “Performance Appraisal” system is an effective tool for evaluating the

employee‘s performance

101
 (a) Agree (b) Partially agree

(d) Neutral (d) Disagree

13. Does current “Performance Appraisal” system reflect the training need of an

employee?

(a) Yes (b) No

Relevance of “Performance Appraisal” system

14. What is your opinion is the relevance “Performance Appraisal” system?

Deciding promotion (b) Deciding incentives

(c) Training & development (d) programme Succession planning

15. The existing “Performance Appraisal” system ensures due recognition talented

employee in terms of promotion, rewards and others

(a) Agree (b) Partially agree

(c) Neutral (d) Disagree

16. Do you think that existing “Performance Appraisal” system is help full in

wholesome development of employee?

(a) Agree (b) Partially agree

(d) Neutral (d) Disagree

17. Are you satisfied with the current “Performance Appraisal” system

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 (a) Yes (b) No

18. Would you say management is responsible to your

(a) Innovativeness (b) Personal problem

(c) Official problem (d) Career aspiration

Give your suggestion for effective implementation of Performance Appraisal system in

AIRTEL .

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 BIBLIOGRAPHY

Books

 Manuals And Files Of AIRTEL

 Research methodology ----------- Devandra Thakur

Deep & Deep Publication Pvt. Ltd. Year -2005.

 Principles and Techniques of Personnel Management –Udai Pareek

Himalya Publishing House Delhi Year -1997

WEB. Sites

 www.AIRTEL -india.com /

 www.googal.com / performance appraisal system.

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