Assessing Effectiveness of Performance Appraisals

CHAPTER – 1
INTRODUCTION
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1.1 INTRODUCTION
The process of HRD helps the employees to acquire and / or develop technical,
managerial and behavioral knowledge, skills and abilities and moulds the values,
beliefs and attitudes necessary to perform present and future roles. The process of
Effectiveness of Performance appraisal helps the employee and the management to
know the level of employee’s performance compared to the standard/ pre-determined
level.
Effectiveness of Performance appraisal is essential to understand and improve the
employee’s performance through HRD. In fact, Effectiveness of Performance
appraisal is the basis for HRD. It was viewed that Effectiveness of Performance
appraisal was useful to decide upon employee promotion /transfer, salary
determination . But the recent developments in human resources management
indicate that Effectiveness of Performance appraisal is the basis for employee
development. Effectiveness of Performance appraisal indicates the level of desired
performance, level of actual performance and the gap between these two. This gap
should be bridged through human resources development techniques like training,
executive development, etc.
Meaning
Effectiveness of Performance appraisal is a method of evaluating the behavior of
employees in the work spot, normally including both the quantitative and qualitative
aspects of job performance. Performance here refers to the degree of accomplishment
of the tasks that make up an individual’s job. It indicates how well an individual is
fulfilling the job demands. Often the term is confused with effort, but performance is
always measured in terms of results and not efforts. A student, for example, may
exert a great deal of effort while preparing for the examination but may manage to
get a poor grade. In this case the effort expended is high but performance is low. In
order to find out whether an employee is worthy of continued employment or not,
and if so, whether he should receive a bonus, a par rise or promotion, his
performance needs to be evaluated from time to time. When properly conducted
performance appraisals not only let the employee know how well he is performing
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but should also influence the employee’s future level of effort, activities, results and
task direction.
Definition
According to Randall S. Schuler “Effectiveness of Performance appraisal is a

formal structured system of measuring and evaluating job related behavior and out
comes to discover how and why the employee is presently performing on the job,
how employee can perform more effectively and in society, all benefits.
Effectiveness of Performance appraisal is a method of evaluating the behavior of
employees in the work spot normally including both quantitative and qualitative
aspects of job performance.”
According to Edward Flippo “Effectiveness of Performance appraisal is the

systematic, periodic and an impartial rating of an employee’s excellence in matters
pertaining to his present job his potential for a better job.”
According to a prominent personality in the field of Human resources, "performance

appraisal is the systematic, periodic and an impartial rating of an employee’s
excellence in the matters pertaining to his present job and his potential for a better
job." Performance appraisal is a powerful tool to calibrate, refine and reward the
performance of the employee. It helps to analyze his achievements and evaluate his
contribution towards the achievements of the overall organizational goals.
Performance appraisal is necessary to measure the performance of the employees and
the organization to check the progress towards the desired goals and aims.
Performance appraisal continues to be a subject of interest and importance to human
resource specialists. For decades, performance appraisal has received considerable
attention in the literature, from both researchers and practitioners alike. The latest
mantra being followed by organizations across the world is "getting paid according
to what you contribute" – the focus of the organizations is turning to performance
management and specifically to individual performance. Performance appraisal helps
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to rate the performance of the employees and evaluate their contribution towards the
organizational goals.
CHAPTER – 2
REVIEW OF LITERATURE
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REVIEW OF LITERATURE
SURVEY 1
TITLE: Perceptions about Performance Management Effectiveness
AUTHOR NAME:ALEXANDRIA,
YEAR: OCT 21 2014
Source:https://www.shrm.org/about-shrm/press-room/press-
releases/pages/2014-performance-management-news-release.aspx
ALEXANDRIA, Va. — More than one-half (53 percent) of surveyed human
resources professionals gave their organizations a grade between B to C+ for
effectively managing performance reviews, according to a Society for Human
Resource Management (SHRM) released today.
Another one-fifth (21 percent) gave their organizations a C in performance
management, while only 2 percent gave their organizations an A, according to the
survey, which was commissioned by and completed in collaboration with the
National Center for the Middle Market (NCMM).
However, HR professionals who worked for companies that view performance
management as a priority were more likely to give their organizations a higher
performance appraisal effectiveness grade of either an A or B.
“Performance reviews are an effective tool when utilized correctly,” said Bettina
Deynes, vice president of HR at SHRM. “But in order for them to be effective, there
needs to be support from the leadership team and sufficient training for managers.”
When HR professionals were asked about the biggest obstacles keeping
organizations from getting an “A” in performance management, common answers
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included lack of managerial time, insufficient training, higher business priorities,
inconsistent evaluation standards, and lack of training.
“The findings also show that it pays off when companies make performance reviews
a priority,” said Evren Esen, director of SHRM’s survey programs. “Because
companies are putting less emphasis on blanket merit salary increases and instead
moving toward incentive programs for high performing employees, performance
management is becoming a key component of compensation reviews.”
Nearly one-third (30 percent) of HR professionals reported that performance
management will be a top priority at their organizations in the coming year. Two-
thirds (65 percent) indicated that some attention and resources would be given
to performance management, though other business issues were a higher priority.
Almost three-quarters of organizations (72 percent) conduct performance reviews
annually and 16 percent conduct reviews semi-annually, or twice a year. Only 3
percent of organizations do not conduct performance reviews.
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SURVEY: 2
TITLE:60% employees say performance appraisals are a waste of
time, 70% say no idea how they are evaluated
AUTHOR NAME: Devashish Chakravarty
YEAR: Mar 17, 2017,

Source::https://economictimes.indiatimes.com/jobs/60-employees-
say-performance-appraisals-are-a-waste-of-time-70-say-no-idea-
how-they-are-evaluated-survey/articleshow/57687570.cms
Organization need to make staff appraisals more transparent and useful as most
employees are neither fully conversant with the process nor do they see them as a
worth task to perform.Majority of the employees find performance reviews in their
organizations opaque, cumbersome and a waste of time, reveals a Times Jobs survey,
'The Performance Review Puzzle', of more than 1,200 employees in various kinds of
organization.
Sixty per cent employees said the performance review was a waste of time.
Most employees are not even fully aware of the process of evaluation. Seventy per
cent said they did not know how they were evaluated. Not surprisingly, 85 per cent
were not aware of the end-to-end process of performance review.
Ninety per cent found performance review forms complex and cumbersome.
Outcome of appraisals never left 35 per cent satisfied while 25 per cent had been
rarely satisfied. Only 10 per cent said they were always satisfied. Thirty per cent
were sometimes satisfied.
A huge 95 per cent said they were not trained by the human resource department to
fill in the review form.
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CHAPTER – 3
RESEARCH
METHODOLOGY
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NEED OF THE STUDY
• To judge the ability of an individual employee to perform his task

• A good performance appraisal system should focus on the individual and his
development in order to achieve the desired performance
• The management was in the position to know whether the existing
performance appraisal system is effective or not.
• To measure the satisfaction level of the employees.
• To get suggestions from the employees for further improvement in existing
performance appraisal system.
• To contribute to the growth of the organization
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1.3 OBJECTIVES OF THE STUDY
• To understand the effectiveness of performance appraisal system
• To measure and improve the performance of employees and increase their
future potential and value to the company.
• The goals set should be both short- and long-term. They should take into
account what the employee wants but also should move the employee toward
the overall vision for the company.
• To give the employee as much feedback as possible so the employee knows
where he is succeeding and what he needs to improve.
• The objective for doing this is to provide a record of the review as evidence
in case of future conflicts.
• To understand the capabilities of the employees by measuring the efficiency
• Maintaining the organisational control
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1.4 SCOPE OF THE STUDY:
The study has been conducted with respect to performance appraisal system existing
in the organization which is useful to know the strength and weakness of appraisal as
well as employees. Therefore, the management can update the system with necessary
changes
Performance appraisal is a continuous process in every large scale organization
• Recognize, reward and support effective performance

• The employees are in position to guide the employees for a better
performance
• Develop and reward effective teamwork
• Identify and manage issues likely to impact on retention
• Monitor and support workers wellbeing
• Determining organizational training and development needs.
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1.5 RESEARCH METHODOLOGY
Discuss the research design, research problems, sources of data, questionnaire,

sample design.The study is Descriptive in nature, the research study often involve the
description of the extent of association between two or more variables. The study
was conducted among the employees of reliance
Sources of data
The relevant data has been collected from the primary sources and secondary
sources.
Primary Data :-
The primary data are those, which are collected a fresh and for the first and thus
happen to be original in character. The research has got the primary data through
questionnaire surveys, personal interview, telephone and etc., the data, which are
collected are first hand data through which the analysis and interpretation would be
taken part.
Secondary Data:-
The secondary data on the other hand are those which have already been collected
by someone else and which have already been passed through the statistical process.
The research has to decide which sort of data he would be using for his study and
accordingly he will have to select on or the other method of data collection. The
researcher has collected the secondary data collection. The researcher has collected
the secondary data from the company’s records, internet, previous project reports etc.
STATISTICAL TOOLS
The researcher has used mainly statistical tools to analysis the data and draw
Interpretation. Chi –Square Analysis In this project chi-square test was used. This is
an analysis of technique which analyzed the stated data in the project. It analysis the
assumed data and calculated in the study. The Chi-square test is an important test
amongst the several tests of significant developed by statistical. Weighted Average
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Method Tabulation, diagram and percentage were also used to make the study more
valid, reliable and understandable.
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Questionnaire administration
Questionnaire was prepared after consulting with Dr Ratna Newar, GM-HR-Head
(Reliance Communications). Here the respondents are asked the question and
required to answer by choosing between a number of alternatives. The main
advantage of this is they are easy to complete and easy to analyze. The research has
adopted this type of survey.
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1.6 LIMITATIONS OF STUDY
• An employee perform to be considered an outstanding employee

• Creating an awareness and acceptance in the people conducting the appraisals
that within a group of workers,
• It governs performance by influencing employee performance input (e.g.
training programs) and by providing feedback via output
• Set goals in a way that reinforces the employee's ability to plan and
implement the steps necessary to reach the goal.
• Night shift employees were unapproachable due to odd timings of their job.
• Improve performance appraisals by using an employee self-appraisal
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1.7 ORGANISATION OF THE STUDY
Organization of the study deals with arrangement of the data. The entire work is
arranged chapter wise to facilitate easy identification of the topics.
CHAPTER 1: INTRODUCTION: It consists of introduction to the topic, need and

importance of the study, objectives of the study, research methodology, scope of the
study, and limitations of the study.
CHAPTER 2: LITERATURE REVIEW: It consist of literature review which

includes the basic concept of human resource policies and different surveys done on
human resource policies
CHAPTER 3: COMPANY PROFILE: It comprises of company profile of

Controls and Schematic Ltd that involves its mission, subsidiaries, service provided
etc.
CHAPTER 4: DATA ANALYSIS AND INTERPRETATION: It consists of data

analysis and interpretation comprising answers to the questionnaires, their relative
findings and interpretation drawn in best meaning and knowledge.
CHAPTER 5: CONCULSION AND SUGGESTIONS: It consists of more

feasible and practical suggestions, to help employee and management to
implement and fight against the factors that affect human resource policies and
improve
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CHAPTER – 4
THEORETICAL
FRAMEWORK
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Nature
Performance Appraisal is the systematic evaluation of the performance of employees
and to understand the abilities of a person for further growth and development.
Performance appraisal is generally done in systematic ways which are as follows:
1. The supervisors measure the pay of employees and compare it with targets
and plans.
2. The supervisor analyses the factors behind work performances of employees.
3. The employers are in position to guide the employees for a better
performance.
Advantages of performance appraisals:
 They provide a document of employee performance over a specific period of

time.
 They provide a structure where a manager can meet and discuss performance
with an employee.
 They allow a manager the opportunity to provide the employee with feedback
about their performance and discuss how well theemployee goals were
accomplished.
 They provide a structured process for an employee to clarify expectations and
discuss issues with their manager.
 They provide a structure for thinking through and planning the upcoming year
and developing employee goals.
 They can motivate employees if supported by a good merit increase and
compensation system.
Disadvantages of performance appraisals:
 If not done right, they can create a negative experience.

 Performance appraisals are very time consuming and can be overwhelming to
managers with many employees.
 They are based on human assessment and are subject to rater errors and biases.
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 Can be a waste of time if not done appropriately.
 They can create a very stressful environment for everyone involved.
Conceptual Framework
Conceptual Framework Process of performance appraisal Setting performance

standard Communicating standard set to employees Measuring performance
Comparing performance with standard Discussing results & taking action Impact on
employee performance 30 Each of these individual components help to achieve the
desired effect on the employee. As elaborated by the objectives of the appraisal
scheme should be determined before the system is designed in detail. The objectives
will to a large extent dictate the methods and performance criteria for appraisal so
they should be discussed with employees, managers and trade unions to obtain their
views and commitment. Performance appraisal follows a systematic process to
ensure that results are achieved. Having established the process of carrying out the
appraisal, there is the need to set the performance standard and communicate these
standard set to employees. At scheduled intervals employee performance is measured
and compared to the set standard. To achieve the desired impact on the performance
of employees, results are analyzed and the necessary action taken to address
weaknesses. Weaknesses in any of the components affect the attainment of the
desired results. For example, failure to set the right performance standards that are
aligned to the organizational objectives will have a negative effect on the
performance expected of the employee. Again, without taking the necessary action
after measuring performance the same weaknesses will continue to exist
Purpose
Purpose of Effectiveness of Performance appraisal can be broadly of two types’ viz.,
administrative purpose and development purpose.
Administrative purpose: Administrative purpose includes:
 Document human resources decisions with regard to performance and its
related issues. Determine promotion of employees.
 Determine transfer and change in job assignments.
 Identify poor performance areas of employees.
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 Decide on layoffs.
 Decide retention or termination.
 Meet legal requirements.
 Decide on salary and reward issues.
Developmental Purpose: Developmental purpose includes:
 Provide performance feedback to all concerned.
 Identify individual skills, core competencies, strengths and weaknesses.
 Recognize individual performance levels.
 Evaluate goal achievement of employees.
 Determine organizational training needs.
 Reinforce authority structure
Content of Performance Appraisal
Every organization has to decide upon the content to be appraised before the
program is approved. Generally contents to be appraised are determined on the basis
of job analysis. Content to be appraised may be in the form of contribution to
organizational objectives (measures) like production, cost saving, return on capital,
etc. Other measures are based on: (i) behavior which measure observable physical
actions, movements, (ii) objectives which measure job related results like amount of
deposits mobilized, and (iii) traits which are measured in terms of personal
characteristics observable in employee’s job activities. Content to be appraised may
be result of appraisal and type and level of employees.
The nature of Effectiveness of Performance appraisal might be useful to look
at its objectives. Almost all organizations practice Effectiveness of Performance
appraisal in one form or the other to achieve one or more objectives.
Work Related Objectives
 To assess the work of employees in relation to job requirements
 To improve efficiency of employees
 To help management in fixing employees according to their capacity, interest,
aptitude and qualifications.
 To carry out job evaluation
Career Development Objectives
 To assess the strong and weak points in the work of the employee and finding
remedies for weak points through training.
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 To determine career potential
 To plan promotions, transfers, layoffs, etc. of the employees
 To plan career goals
Communication Objectives
 To provide feedback to employees such that they can know their present
position and thereby they can improve their job performance ifnecessary.
 To clearly establish goals
 To provide coaching, counseling, career planning and motivation to
employees
 To develop positive superior-subordinate relations and thereby reduce
grievances
 To provide information for making decisions regarding layoff, retrenchment,
etc.
Organizational Objectives
 To serve as a basis for wage and salary administration and considering pay
increases and increments
 To serve as a basis for planning suitable training and development programs
 To serve as a basis for transfers or termination in case of reduction in staff
strength
 To ensure organizational effectiveness, through correcting employee for
standard and improved performance and suggesting the change in employee
behavior.
Limitations of Performance Appraisal

In the “Annual performance review leaves people bitter, dejected, depressed and in
despair for months.” Both the appraiser consider it an unpleasant task as no
Effectiveness of Performance appraisal system can be perfect and free from personal
biases and other defects.
Halo error: The halo error or effect is a tendency to evaluate a person onthe basis of
one trait or characteristic. The appraiser judges a person on the strength of a specific
trait and does not base his inference on his overall performance.
Central tendency: It is the most commonly found error on merit rating.This error
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arises when the rate is not sure about the performance of a person, may not be well
conversant with his work or may have less time at his disposal. He will like to play
safe in evaluating persons and will rate them as average. Neither he will rate them
having poor performance nor he will rate them outstanding. This type of tendency on
the part of evolution, making them most useless for promotion, salary or counseling
purposes.
Leniency or strictness: The evaluators have their own value systemwhich acts as a
standard for evaluation. Some evaluators may lenient and will give high rating to
everyone. Some evaluators may be strict and will give low rating to all.
Similarity error: The rate is aggressive; he will try to find his traits insubordinates.
Those who have this trait will be rated high and those who do not have he will be
rated low. This error can be washed out if the same rater appraises all employees in
the organization
Miscellaneous biases: Biases may exist on the ground of sex, race,religion, position,
etc. The persons on higher positions may be given higher ratings or a rater may have
preference for person belonging to his own sex, race, religion, position, etc.
Psychological blocks: The utility of appraisal system will depend uponthe skills of
the users. This system will depend upon the psychological characteristics of
managers. Managers consider appraisal as an extra burden, they try to treat
subordinates failure as their own, dislikes to communicate unfavorable reports to
subordinates.
Process of Performance Appraisal
Establishing standards
Communicating standards to employees
Measuring actual performance
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Comparing actual with standards
Discussing reports
Taking corrective action
Establishing standards: The employees have to be rated against thestandards set for
their performance. The standards may be in quantity and quality of production in
case of workers; personality traits like leadership, initiative, imagination in case of
executives; files cleared in case of office staff, etc. These standards help in setting
yardsticks for evaluating performance.
Communicating standards to employees: The standards set forperformance should

be communicated to the employees. They should know what is expected from them.
In the absence of any knowledge of standards, the employees will keep on guessing
only. When the standards are made known to employees, they will try to make their
performance equal or above them.
Measuring actual performance: The performance may be measuredthrough

personal observation, statistical reports, oral reports, written reports, etc.
Comparing actual with standards: The actual performance is comparedto

standards set earlier for finding out the standing of employees. The employee is
evaluated and judged by his potential for growth and achievement. Deviations in
performance are also noted at this stage.
Discussing reports with employees: The assessment reports areperiodically

discussed with concerned employees. The weak points, good points and difficulties
are indicated for helping employees to improve their performance.
Taking corrective action: One corrective action may be in the form ofadvice,
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counsel, warning, etc. Other action may be in the form of additional training,
refresher courses, delegation of authority, special assignments, coaching, etc. These
actions will be useful in helping employees to improve their performance in future.
Benefits of Performance Appraisal:

Effectiveness of Performance appraisal is a formal exercise carried out for all
executives and workers/staff with respect to their contributions made towards the
organization. The benefits of a successful appraisal system are as follows:
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For the Appraise:
Better understanding of his role in the organization-what is expected and what need
to be done to meet those expectations.
 Clear understanding of his strengths and weaknesses so as to develop himself
into a better performance in future.
 Opportunity to discuss work problems and how they can be overcome.
 Opportunity to discuss work aspirations and any guidance, support or training
needed to fulfill these aspirations.
 Improved working relationship with the superiors.
For the Management

 Identification of performers and non-performers and their development
towards better performance.
 Opportunity to prepare employees for assuming higher responsibilities.
 Opportunity to improve communication between the employees and the
management.
 Identification of training and development needs.
 Generation of ideas for improvements.
 Better identification of potential and formulation of career plans.
For the Organization
 Improved performance throughout the organization.
 Creation of a culture of continuous improvement and success.
 Conveyance of message that people are valued.
Challenges of Performance Appraisal

There are chances of opposition for valuation due to fear. If the evaluation system is
poor, it will not give adequate effect. Problems like leniency or harshness error,
central tendency error, personal bias error, contrast error are also affecting the
performance appraisal of an employee each employee should evaluate by his
supervisor and to discuss each other to set objectives for upcoming evaluation. This
discussion should cover the review of overall progress, problems encountered,
performance improvement possibilities, long term career goals, specific action plan
about job description and responsibilities, employee development interest and needs,
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to concentrate specific areas of development, to review performance objectives and
performance standard, ongoing feedback and periodic discussions Performance
appraisals are important for staff motivation, attitude and behavior development,
communicating organizational aims, and fostering positive relationships between
management and staff. Performance appraisals provide a formal, recorded, regular
review of an individual's performance, and a plan for future development. In short,
performance and job appraisals are vital for managing the performance of people and
organizations.
Employees Perception of Appraisal Systems

Most employees have mixed feelings with performance appraisal systems. Some
believe it carry some biases and largely fails to meet its objectives, others find it a
means to justify their performance managers commit mistakes while evaluating
employees and their performance. Some of these biases are perceived by employees
as ways of unfairly interpreting their performances. Biases and judgment errors of
various kinds may spoil the performance appraisal process. Bias, IT refers to
inaccurate distortion of a measurement. It points out that, even when a performance
evaluation program is structured appropriately, its effectiveness can be diluted by the
improper use of subjective, as opposed to objective, measures. Objective measures
are easily incorporated into an appraisal because they are quantifiable and verifiable.
In contrast, subjective measures are those that cannot be quantified and are largely
dependent on the opinion of an observer. Subjective measures have the potential to
dilute the quality of worker evaluations because they may be influenced by bias, or
distortion as a result of emotion,to overcome the effects of prejudice, many
organizations must train appraisers to avoid biases.
Performance Appraisal Techniques

Performance appraisal techniques can be classified as either past-oriented or future-
oriented.
Past-Oriented Techniques:
Past-oriented techniques assess behavior that has already occurred. They focus on
providing feedback to employees about their actions, feedback that is used to achieve
greater success in the future. Techniques under this form as discussed below:
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Rating Scales and Checklists:
Some of the traditional forms of performance appraisals such as rating scales and
checklists remain popular despite their inherent flaws. They entail an assessor
providing a subjective assessment of an individual's performance based on a scale
effectively ranging from good to bad or on a checklist of characteristics. Typically,
basic criteria such as dependability, attitude, and attendance are listed.
The obvious advantage of these techniques is that they are inexpensive and easy to
administer. Primary disadvantages include the fact that they are: highly susceptible to
all forms of bias; often neglect key job-related information and include unnecessary
data; provide limited opportunities for effective feedback; and fail to set standards
for future success. Furthermore, subjective techniques such as rating scales are
vulnerable to legal attack.
Behaviorally Anchored Rating Scales (BARS):

Performance appraisal is behaviorally anchored rating scales (BARSs), which are
designed to identify job-related activities and responsibilities and to describe the
more effective and less effective behaviors that lead to success in specific jobs. The
rater observes a worker and then records his or her behavior on a BARS. The system
is similar to checklist methods in that statements are essentially checked off as true
or false. BARS differ in that they use combinations of job-related statements that
allow the assessor to differentiate between behavior, performance, and results.
Forced-Choice Appraisals:
Forced-choice appraisals consist of a list of paired (or larger groups of) statements.
The statements in each pair may both be negative or positive, or one could be
positive and the other negative. The evaluator is forced to choose one statement from
each pair that most closely describes the individual He contends that Forced-choice
24 appraisals are typically easy to understand and inexpensive to administer, but they
lack job relatedness and provide little opportunity for constructive feedback.
Critical Incident Evaluation Techniques:
Critical incident evaluation techniques require the assessor to record statements that
describe good and bad job-related behavior (critical incidents) exhibited by the
employee. The statements are grouped by categories such as cooperation, timeliness,
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and attitude. An advantage of this system is that it can be used very successfully to
give feedback to employees. Furthermore, it is less susceptible to some forms of bias.
Field review appraisal techniques:
Human resource professionals to assist managers inconductingappraisals. The
specialist asks the manager and sometime coworkers’ questions about an employee's
performance, records the answers, prepares an evaluation, and sends it to the
manager to review and discuss with the employee. This type of system improves
reliability and standardization because a personnel professional is doing the
assessment. For the same reason, it is less susceptible to bias or to legal problems.
But field reviews are generally expensive and impractical for most firms, and are
typically utilized only in special instances—to counteract charges of bias,
Future-Oriented Techniques:
In contrast, future-oriented appraisal techniques emphasize future performance by
assessing employees' potential for achievement and by setting targets for both short-
and long-term performance.
Management by Objectives (MBO) Approach:

This technique as usually goal oriented. In MBO, managers and employees work
together to set goals with the intent of helping employees to achieve continuous
improvement through an ongoing process of goal setting, feedback, and correction.
As a result of their input, employees are much more likely to be motivated to
accomplish the goals and to be responsive to criticism that arises from subsequent
objective measurements of performance
Assessment center evaluation:

Assessmentmethod that is usually applied to managerial or executive prospects. It is
a system of determining future potential based on multiple evaluations and raters.
Typically, a group meets at a training facility or evaluation site. They are evaluated
individually through a battery of interviews, tests, and exercises. In addition, they are
evaluated within a group setting during decision-making exercises, team projects,
and group discussions. Psychologists and managers work together to evaluate the
employees' future management potential and to identify strengths and weaknesses,
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Psychological tests:
Psychological tests are a much less intricate method of determining future potential.
They normally consist of interviews with the employee and his supervisors and
coworkers, as well as different types of tests and evaluations of intellectual,
emotional, and work-related characteristics. The psychologist puts his or her findings
and conclusions in a report that may or may not be shared with the employee.
Self-Appraisal:
Another appraisal technique included in the future-oriented category is self-appraisal,
which entails employees making evaluations of their own performance. Self-
assessment techniques may also be coordinated with past-oriented evaluations, they
are particularly useful in helping employees to set personal goals and identify areas
of behaviors that need improvement. The advantage of such appraisals, which may
be relatively informal, is that they provide an excellent forum for input and feedback
by superiors.
The Balanced Scorecard:

As a process that focuses on clarity and is useful in evaluating both internal
processes and external results. The balanced scorecard focuses on four key
perspectives in which individual assessments take place and are then combined to
provide an overall assessment. These perspectives are learning and growth, business
process, customer, and financial
Developing Employee Performance Appraisal Plans (EPAP):

Regulatory requirements for planning an employee’s performance include first
establishing the elements and standards in their EPAP. An EPAP outlines the
specific elements and standards that the employee is expected to accomplish during
the rating cycle.
Performance elements and standards should be measurable, understandable,
verifiable, equitable, and achievable. In addition, EPAPs should be flexible so that
they can be adjusted for changing program objectives and work requirements.
Elements:
Elements established in appraisal plans should all be considered critical. Through
these elements, employees are held accountable as individuals for work 28
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assignments and responsibilities of their position. A critical element is an assignment
or responsibility of such importance that unsatisfactory performance in that element
alone would result in a determination that the employee’s overall performance is
unsatisfactory.
Standards:
The standards must be focused on results and include credible measures such as:
1) Quality
This addresses how well the employee or work unit is expected to perform the work
and/or the accuracy or effectiveness of the final product. It refers to accuracy,
appearance, usefulness, or effectiveness. Measures can include error rates (such as
the number or percentage of errors allowable per unit of work) and customer
satisfaction rates (determined through a customer survey/feedback).
2) Quantity
This addresses how much work the employee or work unit is expected to produce.
Measures are expressed as a number of products or services expected, or as a general
result to achieve.
3) Timeliness
This addresses how quickly, when, or by what date the employee or work unit is
expected to produce the work
4) Cost-Effectiveness
This addresses savings or cost control. These should address cost-effectiveness on
specific resource levels (money, personnel, or time) that can generally be
documented and measured. Cost-effectiveness measures may include such aspects of
performance as maintaining or reducing unit costs, reducing the time it takes to
produce or provide a product or service, or reducing waste
31
CHAPTER – 5
COMPANY PROFILE
32
INDUSTRY PROFILE
The Reliance Group, founded by Dhirubhai H. Ambani, is India's largest private

sector enterprise, with businesses in the energy and materials value chain. The
flagship company, Reliance Industries Limited, is a Fortune Global 500
company and is the largest private sector company in India.
Dhirubhai Ambani founded Reliance as a textile company and led its evolution
as a global leader in the materials and energy value chain businesses. It was in
1957 when he returned to India after a stint with A.Besse& Co., Aden he started
yarn trading business from a small 500 sq.Office in Masjid Bunder, Mumbai.
He set up his brand new mill in Naroda, Gujarat. In 1996 Reliance went on to
become the biggest textile brand? Only Vimal? In 1977 the Reliance Textile
Industries came with an IPO which was oversubscribed seven times.
Reliance enjoys global leadership in its businesses, being the largest polyester
yarn and fibre producer in the world and among the top five to ten producers in
the world in major petrochemical products.
Starting as a small textile company, Reliance has in its journey crossed several
milestones to become a Fortune 500 company in less than 3 decades.
Reliance Industries Limited operates world–class manufacturing facilities across
the country at Allahabad, Barabanki, Dahej, Dhenkanal, Hazira, Hoshiarpur,
Jamnagar, Kurkumbh, Nagothane, Nagpur, Naroda, Patalganga, Silvassa and
Vadodara.
Allahabad Manufacturing Division located in Allahabad, Uttar Pradesh, is
spread over 105 acres. It is equipped with polymerization and continuous
polymerization facilities.
Barabanki Manufacturing Division located near Lucknow, Uttar Pradesh, is
spread over 106 acres. It manufactures Black Fibre.
Dahej Manufacturing Division located near Bharuch, Gujarat, is spread over
1,778 acres. It comprises of an ethane / propane recovery unit, a gas cracker, a
caustic chlorine plant and 4 downstream plants, which manufacture polymers
and fibre intermediates.
Dhenkanal Manufacturing Division located in Baulpur, Orissa, is spread over
227 acres. It manufactures polyester staple fibre.
33
Hoshiarpur Manufacturing Division located in Hoshiarpur, Punjab, is spread
over 69 acres. It manufactures a wide range of PSF, PFF, POY and polyester
chips.
Hazira Manufacturing Division located near Surat, Gujarat, is spread over 700
acres. It comprises of a Naptha cracker feeding downstream fibre intermediates,
plastics and polyester plants.
Jamnagar Manufacturing Division located in Jamnagar, Gujarat, is spread
over 7,400 acres. It comprises of a petroleum refinery and associated
petrochemical plants. The refinery is equipped to refine various types of crude
oil (sour crude, sweet crude or a mixture of both) and manufactures various
grades of fuel from motor gasoline to Aviation Turbine Fuel (ATF). The
petrochemicals plants produces plastics and fibre intermediates.
Kurkumbh Manufacturing Division located near Pune, Maharashtra, is spread
over 34 acres. It manufactures fibre intermediates.
Nagothane Manufacturing Division located in Raigad, Maharashtra, is spread
over 1,860 acres. It comprises of an ethane and propane gas cracker and five
downstream plants for the manufacture of polymers, fibre intermediates and
chemicals.
Nagpur Manufacturing Division located in Nagpur, Maharashtra, is spread
over 368 acres. It manufactures polyester filament yarn, dope–dyed specialty
products of different ranges, fully drawn yarn and polyester chips.
Naroda Manufacturing Division located near Ahmedabad, Gujarat, is RIL?s
first manufacturing facility and is spread over 150 acres. This synthetic textiles
and fabrics manufacturing facility manufactures and markets woven and knitted
fabrics for home textiles, synthetic and worsted suiting and shirting, ready to
wear garments and automotive fabrics.
Patalganga Manufacturing Division located near Mumbai, Maharashtra, is
spread over 200 acres. It comprises of polyester, fibre intermediates and linear
alklyl benzene manufacturing plants.
Silvassa Manufacturing Division located in the Union Territory of Dadra and
Nagar Haveli, is spread over 127 acres. It manufactures a wide range of
specialty products such as Recron Stretch, Linen Like, Melange, Thick–n–thin
and Bi–shrinkage yarns.
34
Vadodara Manufacturing Division located in Vadodara, Gujarat, is spread
over 1,263 acres. It comprises of a Naptha cracker and 15 downstream plants for
the manufacture of polymers, fibres, fibre intermediates and chemicals.
The company works under different business segments:
 Exploration and Production
 Petroleum Refining and Marketing
 Petrochemicals
 Textiles
 Retail
 Products and brands offered by the company:
 Crude oil and natural gas
 LPG
 Propylene
 Naphtha
 Gasoline
 Jet/Aviation Turbine Fuel
 Superior Kerosene Oil
 High Speed Diesel
 Sulphur
 Petroleum Coke
 Polypropylene
 High Density Polyethylene
 Low Density Polyethylene
35
COMPANY PROFILE
Reliance Group, an offshoot of the Group founded by Shri Dhirubhai H Ambani

(1932-2002), ranks among India's top private sector business houses in terms of
net worth. The group has business interests that range from telecommunications
(Reliance Communications Limited) to financial services (Reliance Capital Ltd)
and the generation and distribution of power (Reliance Power Limited and
Reliance Infrastructure Limited).
Reliance Group's flagship company, Reliance Communications is India's
foremost and truly integrated telecommunications service provider. The
Company has a customer base of above 118 million including over 2.6 million
individual overseas retail customers. Reliance Communications corporate
clientele includes over 39,000 Indian and multinational corporations including
small and medium enterprises and over 290 global, regional and domestic
carriers.
Reliance Communications has established a pan-India, next generation,
integrated (wireless and wireline), convergent (voice, data and video) digital
network that is capable of supporting best-of-class services spanning the entire
communications value chain, covering over 21,000 cities and towns and over
400,000 villages. Reliance Communications owns and operates the world's
largest next generation IP enabled connectivity infrastructure, comprising over
280,000 kilometers of fibre optic cable systems in India, USA, Europe, Middle
East and the Asia Pacific region.
Other major group companies - Reliance Power, Reliance Infrastructure and
Reliance Capital - are widely acknowledged as the market leaders in their
respective areas of operation. Reliance Communications
36
About Sh. Dhirubhai Ambani
Few men in history have made as dramatic a contribution to their country’s
economic fortunes as did the founder of Reliance, Sh. Dhirubhai H Ambani.
Fewer still have left behind a legacy that is more enduring and timeless.
As with all great pioneers, there is more than one unique way of describing the
true genius of Dhirubhai: the corporate visionary, the unmatched strategist, the
proud patriot, the leader of men, the architect of India’s capital markets, the
champion of shareholder interest.
But the role Dhirubhai cherished most was perhaps that of India’s greatest
wealth creator. In one lifetime, he built, starting from the proverbial scratch,
India’s largest private sector enterprise.
When Dhirubhai embarked on his first business venture, he had a seed capital of
barely US$ 300 (around Rs 14,000). Over the next three and a half decades, he
converted this fledgling enterprise into a Rs 60,000 crore colossus—an
achievement which earned Reliance a place on the global Fortune 500 list, the
first ever Indian private company to do so.
Dhirubhai is widely regarded as the father of India’s capital markets. In 1977,
when Reliance Textile Industries Limited first went public, the Indian stock
market was a place patronised by a small club of elite investors which dabbled
in a handful of stocks.
Undaunted, Dhirubhai managed to convince a large number of first-time retail
investors to participate in the unfolding Reliance story and put their hard-earned
money in the Reliance Textile IPO, promising them, in exchange for their trust,
substantial return on their investments. It was to be the start of one of great
stories of mutual respect and reciprocal gain in the Indian markets.
Under Dhirubhai’s extraordinary vision and leadership, Reliance scripted one of
the greatest growth stories in corporate history anywhere in the world, and went
on to become India’s largest private sector enterprise.Through out this amazing
journey, Dhirubhai always kept the interests of the ordinary shareholder
uppermost in mind, in the process making millionaires out of many of the initial
investors in the Reliance stock, and creating one of the world’s largest
shareholder families.
37
Anil Dhirubhai Ambani
Chairman - Reliance Group
Personal :
Anil Dhirubhai Ambani, born on 4th June, 1959, in Mumbai.
He is the younger son of the visionary entrepreneur Shri Dhirubhai Ambani and
lives with his mother Kokilaben Dhirubhai Ambani in Mumbai.
Graduated (B.Sc. in Science) from K.C. College, Mumbai University and MBA
at Wharton, University of Pennsylvania.
He is married to former actress - Tina Munim and has two sons - Jai Anmol (23
Years) and Jai Anshul (19 Years).
He has an elder brother Mr. Mukesh Ambani and two younger sisters Mrs. Dipti
Salgaocar and Mrs. Nina Kothari.
Corporate :
Anil Dhirubhai Ambani is one of India's leading business leaders and founder of
the Reliance Group; whose constituent business enterprises are engaged in
pivotal roles in the ongoing economic transformation of India.
He is the Chairman of the Reliance Group; including, Reliance
Communications, Reliance Capital, Reliance Infrastructure, and Reliance
Power.
Anil or ADA, as he is often referred to by his colleagues, founded the Reliance
Group in 2006 and in less than 10 years, the Reliance Group has built a
leadership position in major growth sectors of the Indian economy, including
telecommunications, generation, transmission and distribution of renewable and
non-renewable sources of power, national road highways, metro rail systems,
cement, financial services, education, healthcare, media and entertainment.
Key Indicators of Reliance Group :
Reliance Group is amongst India's top 5 business houses and has the world's
largest Shareholder/Investor base of over 13 million shareholders and investors.
Reliance Group has assets in excess of Rs. 2,60,000 Crore (US $ 43 billion);
annual Revenues of the order of Rs. 56,000 Crore (US $ 9 billion); Net Worth
of over Rs. 98,000 Crore (US $ 16 billion); and over 1,00,000 employees.
Business Partnerships :
 Reliance Life Insurance is in partnership with Nippon Life Insurance of
Japan
38
 Reliance Asset Management is in partnership with Nippon Life Insurance of
Japan.
 Sumitomo Mitsui Trust Bank (SMTB) is now one of the largest shareholders
of Reliance Capital Limited, through a strategic partnership.
 Veolia Transport of France is in partnership with Mumbai Metro One Pvt.
Ltd. (MMOPL) - part of Reliance Infrastructure Limited.
 Partnership with Steven Spielberg and DreamWorks Studios, USA, which
has produced highly acclaimed - Oscar winning/Oscar nominated movies,
such as Lincoln, War Horse, and The Help.
 Partnership with Bloomberg TV for one of India's most influential business
TV channels.
Beyond Reliance :
 Member of Wharton Board of Overseers, The Wharton School, USA.
 Member of the President's Global Council, New York University, USA.
 Member of the Advisory Board of Warwick Business School (WBS), UK.
 One of the Founders of Indian School of Business (ISB), Hyderabad. ISB
has established formal partnerships with international business schools -
Wharton and Kellogg.
 Appointed by Prime Minister as Co-Chair of the India-China CEO Forum.
 Appointed by Prime Minister as Member of the US-India CEO Forum.
 Was elected in 2004 for a six-year term as an independent member of the
Rajya Sabha, the Upper House of India's Parliament.
Beyond Business :
 Established Kokilaben Dhirubhai Ambani Hospital (KDAH) - state of the
art 750 bed multi-speciality hospital in Mumbai.
 Dhirubhai Ambani Institute of Information and Communication Technology
(DA-IICT) in Gandhinagar, Gujarat - one of the foremost educational
institutions.
 Mudra Institute of Communications (MICA), Ahmedabad - India's Premier
Management School for Strategic Marketing and Communication.
 Harmony Art Foundation - Organises Harmony Art, India's largest annual
private contemporary art show.
39
 Harmony for Silvers Foundation is a non-government organization working
to enhance the quality of life of the elderly in India.
 Ms. Tina Anil Ambani is the Chairperson, for all Corporate Social
Responsibility (CSR) programmes of the Group.
Passions :
 Anil is a long distance marathon runner and has been running for nearly 15
years. He has successfully participated in over 50 half and full marathons.
 He is a nature and wildlife conservationist and deeply spiritual.
Recognitions and Honours :
 Consistently featured every year as of one India's "Most Powerful and
Influential Person" in the annual power list of India Today Magazine.
 Also feature in list of India's 50 Most Powerful People by the US-based
Business Week magazine.
 4th amongst the list of India's Top 100 CEOs by The Economic Times.
 Included in UK-based Financial Times' selection of 50 Most Notable
Business Leaders from Emerging Markets.
 Conferred the 'CEO of the Year' by Platts Global Energy.
 Selected by Asiaweek magazine for its list of 'Leaders of the Millennium in
Business and Finance' and was introduced as the only 'new hero' in Business
and Finance from India.
 Awarded the First Wharton Indian Alumni Award by the Wharton India
Economic Forum (WIEF)
 Rated as one of "India's Most Admired CEO's" by Business Barons
 Conferred "The Entrepreneur of the Decade Award" by the Bombay
Management Association
Business
 Mobile
 Internet
 Entertainment
 Enterprise Solution
 Networking
 Data Center
40
 Infrastructure Business
 Reliance World Stores
 Rural communication
 RDEL
 RCP
Boards of Diretors
 Shri Anil D. Ambani, Chairman (Promoter, Non-Executive and Non-
Independent Director)
 Prof. J. Ramachandran (Independent Director)
 Shri Deepak Shourie (Independent Director)
 Shri A. K. Purwar (Independent Director)
 Shri R. N. Bhardwaj (Independent Director)
 Smt. Manjari Kacker (Non-Executive Non-Independent Director)
 Shri Punit Garg – Executive Director (Executive and Non-Independent
Director)
 Shri Manikantan V., Chief Financial Officer (CFO) and
Director (Executive and Non-Independent Director)
 Ms. Chhaya Virani - (Independent Director)
 Ms. Ryna Karani-(Independent Director)
 Shri William Barney (Bill Barney)- (Non Executive Non Independent
Director)
 Shri Suresh Rangachar- (Non Executive Non Independent Director)
Reliance Communications (formerly Reliahce Infocomm) is one of India’s
largest providers of integrated communications services, The company has more
than 20 million customers and serves indIvidual: consumers, enterprises; and
carriers, providing wireless, wire line, long ,distance, voice; data, and internet
communications services through a number of operating subsidiaries. It is
currently managed by Anil Dhirubhai Ambani.
The Late Dhirubhai Ambani dreamt of a digital India - an India where the
common man would have, access to affordable, means of information and
communication. Dhirubhai, who single.,.handedly built India’s largest private
sector company virtually from scratch, had stated as early as 1999: “Make the
41
tools of information and communication available to people at an affordable
cost. They will overcome the handicaps of illiteracy and lack ‘of mobility.”
It was with this belief in mind that Reliance Communications (formerly

Reliance Infocomm) started laying 60,000 route kilometers of a pan-India fibre
optic backbone. This backbone was commissioned on 28 December 2002, The
auspicious occasion of Dhirubhai’s 70th birthday, though sadly after his
unexpected demise on 6 July 2002.
Reliance Communications. has’ a reliable, high-capacity, integrated

(both wireless and wireline) and convergent’ (Voice, data and video) digital
network. It is capable of delivering’ a range of services spanning the entire
infocomm (information and communication) value chain., including
infrastructure and services - for enterprises as well as individuals, applications,
and consulting.
Today, Reliance Communications’ ‘is revolutionizing the way India

communicates and networks, truly bringing about a new way of life.
Inception:
Reliance infocomm was founded on 28th Dec 2002' it changed its name
to Reliance communications in the year 2004,
Nature of business carried:
Reliance communications business’ encompasses a complete range of telecom

services covering mobile and fixed line telephony. It includes broadband,
national and international long distance services. and data services along with
an exhaustive range of value-added services and applications.
Reliance Communications is also into Wire line Business throughout India and
has the largest OFC backbone architecture [roughly 110,000 KMs] in the
country. The company also has license in the GSM telecom services space for
most of the Telecom Circles (zones in layman’s words).’ It currently operates 8
circles and plans to launch in the others soon.
42
Reliance communications has launched DTH TV also, known as “Big TV”. It
launched on July 2008. Once done, Reliance Communications will have
presence across all B2C communications channel in one of the fastes growing
markets. in the world.
Vision:
“We will leverage our strengths .to execute complex global-scale projects to
facilitate leading-edge information and communication services affordable to all
individual consumers and businesses in India
We will offer unparalleled value to create customer delight and enhance

business productivity. We will also generate value for our capabilities beyond
Indian borders and enable millions of India’s knowledge workers to deliver their
services globally."
PRODUCTS AND SERVICES PROFILE:
Reliance Communications is one of India’s largest providers of integrated

communications services. With more than 48 million customers, the company
serves consumers and enterprises with a digital network supporting voice, data,
and video. Its fixed and wireless communications services include domestic and
international voice, Internet access, messaging, and videoconferencing. It also
provides wholesale capacity, infrastructure, and managed enterprise services
through its Reliance Globalcom division.
43
Products and services of Reliance Communications
Reliance Communications Ltd. (RCOM) is an Indian Internet accessand

telecommunications company headquartered in Navi Mumbai, India. It
provides CDMA (CDMA2000, 1xRTT, EV-DO), GSM (Voice, 2G, 3G) mobile
services, fixed line broadband and voice services, DTH depending upon the
areas of operation. Reliance Communications is the fourth largest telecom
operator in India with 109.90 million subscribers as of June 2015. Established in
2002, it is a subsidiary of Reliance Anil Dhirubhai Ambani Group. Reliance
Communication IT Support is provided by Reliance Tech Services and Telecom
network is maintained and operated by Ericsson, transmission towers are
maintained by its subsidiary Reliance Infratel.
In November 2015, Reliance Communications entered into an agreement to

acquire MTS India.
Mobile services.
In 2002, it launched CDMA Operations in 22 circles and became a pan India

operator. In 2008, Reliance Communications launched GSM. In the
2010 spectrum auction, Reliance Communications paid ₹ 58,642.9 million for
3G spectrum in 13 circles Delhi, Mumbai, Kolkata, Punjab, Rajasthan,
44
Madhya, West Bengal, Himachal Pradesh, Bihar, Odisha, Assam,North
East and Jammu & Kashmir.
On 25 May 2012, RCom announced a price reduction of 61% on its 3G

services. In 2011, Reliance provided up to 28 Mbit/s data rate in India with
its MIMO technology. On 31 January 2013, Reliance announced its partnership
with Lenovo to market co-branded smart phones in India. The smart phones
were said to use the Android operating system and have dual-core processors. In
2015, it launched CDMA in REV. B technology in non 3G circles.
Network coverage.
Reliance Communications operates in 22 telecom circles and offers services on

GSM and CDMA platforms. Mobile services are available in the following
telecom circles:
45
2
Telecom circle CDMA 3G
G
Andhra Pradesh & Telangana
Assam
Bihar & Jharkhand
Delhi
Uttar Pradesh (East)
Gujarat
Haryana
Himachal Pradesh
Jammu and Kashmir
Karnataka
Kerala
Kolkata
Madhya
Pradesh & Chhattisgarh
Maharashtra & Goa
Mumbai
North-East
46
2
Telecom circle CDMA 3G
G
Odisha
Punjab
Rajasthan
(under 3G ICR with

Tamil Nadu
Aircel)
West Bengal
Uttar Pradesh (West)
Reliance Telecom Limited (RTL) operates in Madhya Pradesh, West

Bengal, kolkata Himachal Pradesh, Odisha, Bihar,Assam and the northeast of
India. It first offered GSM services in January 2003. Reliance Tech Services is
the IT services wing of Reliance ADAG. It provides IT consultancy, business
process outsourcing and software development for Reliance Communications
and other ADA group companies. Reliance Globalcom owns the Fiber-Optic
Link Around the Globe undersea cable system and RIDC provides Internet data
centre (IDC) services located in Mumbai, Bangalore, Hyderabad and Chennai.
Reliance Communications also acquired FLAG Telecom, Yipes ethernet
service, Digicable and Vanco.
Corporate :
Anil Dhirubhai Ambani is one of India's leading business leaders and founder of
the Reliance Group; whose constituent business enterprises are engaged in
pivotal roles in the ongoing economic transformation of India.
He is the Chairman of the Reliance Group; including, Reliance

Communications, Reliance Capital, Reliance Infrastructure, and Reliance Power
47
Anil or ADA, as he is often referred to by his colleagues, founded the Reliance
Group in 2006 and in less than 10 years, the Reliance Group has built a
leadership position in major growth sectors of the Indian economy, including
telecommunications, generation, transmission and distribution of renewable and
non-renewable sources of power, national road highways, metro rail systems,
cement, financial services, education, healthcare, media and entertainment.
Key Indicators of Reliance Group:
Reliance Group is amongst India's top 5 business houses and has the world's
largest Shareholder/Investor base of over 13 million shareholders and investors.
Reliance Group has assets in excess of Rs. 2, 60,000 Crore (US $ 43 billion);
annual Revenues of the order of Rs. 56,000 Crore (US $ 9 billion); Net Worth
of over Rs. 98,000 Crore (US $ 16 billion); and over 1, 00,000 employees.
Business Partnerships:
 Reliance Life Insurance is in partnership with Nippon Life

Insurance of Japan
 Reliance Asset Management is in partnership with Nippon Life
Insurance of Japan.
 Sumitomo Mitsui Trust Bank (SMTB) is now one of the largest
shareholders of Reliance Capital Limited, through a strategic
partnership.
 Veolia Transport of France is in partnership with Mumbai Metro
One Pvt. Ltd. (MMOPL) - part of Reliance Infrastructure Limited.
 Partnership with Steven Spielberg and DreamWorks Studios, USA,
which has produced highly acclaimed - Oscar winning/Oscar
nominated movies, such as Lincoln, War Horse, and The Help.
 Partnership with Bloomberg TV for one of India's most influential
business TV channels.
Beyond Reliance:
 Member of Wharton Board of Overseers, The Wharton School,

USA.
 Member of the President's Global Council, New York University,
USA.
48
 Member of the Advisory Board of Warwick Business School
(WBS), UK.
 One of the Founders of Indian School of Business (ISB),
Hyderabad. ISB has established formal partnerships with
international business schools - Wharton and Kellogg.
 Appointed by Prime Minister as Co-Chair of the India-China CEO
Forum.
 Appointed by Prime Minister as Member of the US-India CEO
Forum.
 Was elected in 2004 for a six-year term as an independent member
of the Rajya Sabha, the Upper House of India's Parliament.
Beyond Business :
 Established Kokilaben Dhirubhai Ambani Hospital (KDAH) - state

of the art 750 bed multi-speciality hospital in Mumbai.
 Dhirubhai Ambani Institute of Information and Communication
Technology (DA-IICT) in Gandhinagar, Gujarat - one of the
foremost educational institutions.
 Mudra Institute of Communications (MICA), Ahmedabad - India's
Premier Management School for Strategic Marketing and
Communication.
 Harmony Art Foundation - Organises Harmony Art, India's largest
annual private contemporary art show.
 Harmony for Silvers Foundation is a non-government organization
working to enhance the quality of life of the elderly in India.
 Ms. Tina Anil Ambani is the Chairperson, for all Corporate Social
Responsibility (CSR) programmes of the Group.
Passions:
 Anil is a long distance marathon runner and has been running for
nearly 15 years. He has successfully participated in over 50 half and
full marathons.
 He is a nature and wildlife conservationist and deeply spiritual.
Recognitions and Honours :
49
 Consistently featured every year as of one India's "Most Powerful
and Influential Person" in the annual power list of India Today
Magazine.
 Also feature in list of India's 50 Most Powerful People by the US-
based Business Week magazine.
 4th amongst the list of India's Top 100 CEOs by The Economic
Times.
 Included in UK-based Financial Times' selection of 50 Most
Notable Business Leaders from Emerging Markets.
 Conferred the 'CEO of the Year' by Platts Global Energy.
 Selected by Asia week magazine for its list of 'Leaders of the
Millennium in Business and Finance' and was introduced as the only
'new hero' in Business and Finance from India.
 Awarded the First Wharton Indian Alumni Award by the Wharton
India Economic Forum (WIEF)
 Rated as one of "India's Most Admired CEO's" by Business Barons
 Conferred "The Entrepreneur of the Decade Award" by the Bombay
Management Association.
Mission: Excellence in Communication Arena
 To attain global best practices and become a world-class

communication service provider - guided by its purpose to move
towards greater degree of sophistication and maturity.
 To work with vigor, dedication and innovation to achieve excellence
in service, quality, reliability, safety and customer care as the ultimate
goal.
 To earn the trust and confidence of all stakeholders, exceeding their
expectations and make the Company a respected household name.
 To consistently achieve high growth with the highest levels of
productivity.
 To be a technology driven, efficient and financially sound
organization.
 To contribute towards community development and nation building.
 To be a responsible corporate citizen nurturing human values and
concern for Society, the environment and above all, the people.
50
 To promote a work culture that fosters individual growth, team spirit
and creativity to overcome challenges and attain goals.
 To encourage ideas, talent and value systems.
 To uphold the guiding principles of trust, integrity and transparency in
all aspects of interactions and dealings
Board of Directors
 Shri Anil D. Ambani - Chairman (Promoter, non-executive and non-

independent Director)
 Prof. J Ramachandran (Independent Director)
 Shri Deepak Shourie (Independent Director)
 Shri A.K.Purwar (Independent Director)
 Shri R. N. Bhardwaj (Independent Director)
 Smt. Manjari Kacker (Non-Executive non-independent Director)
2009
World Communication Awards- Best Device Award
We have won the prestigious Global World Communication Awards, held in

London in the Best Device Category where we participated with a new network
device, developed with CISCO. RCOM was the only Indian company to win an
award at WCA' 09.
Frost and Sullivan Award
We have been awarded with Frost and Sullivan Market Share Leadership award
for "Data Center and Managed Services" category.
2010
Maharashtra IT Award-Datacenters
RCOM received Maharashtra IT Award (MITA) for 2010 under the category of
Datacenters.
Voice & Data Award-Broadband
51
We have won the Voice and Data Award for the year 2010 in the Broadband
category
CHAPTER – 6
52
DATA NALYSIS
&
INTERPRETATION
Q1.Does the present appraisal system is a computerized system one?

a) Strongly agree b) agree c) cannot say d) disagree e) strongly disagree
Table no 1: Appraisal system

s.no Options Responses percentage
1 Strongly agree 36 36
2 Agree 26 26
3 Cannot Say 15 15
4 Disagree 12 12
5 Strongly Disagree 11 11
TOTAL 100 100
53
GRAPH: 1 Appraisal system
Analysis:
From the above statementout of 100 respondents, 36 strongly agree, 26agree,
15 cannot say, 12 disagree and 11 strongly disagree that the present appraisal
System is an effective one.
Interpretation:
From the above graph i.e., the present appraisalsystem is an effective one
Q2. Midterm review of employee performance instead of annual review is

beneficial?
Table no 2: Midterm review
2 Agree 50 50
3 Cannot Say 21 21
4 Disagree 4 4
TOTAL 100 100
54
GRAPH: 2 Midterm review
ANALYSIS:
From the above statementout of 100 respondents, 15 stronglyagree, 50 agree, 21
cannot say, 4 disagree and 10 strongly disagree that instead of annual review
midterm review of employee performance is beneficial
Interpretation:
From the above graph.i.e., instead of annual reviewmidterm review of
employee performance is beneficial.
Q3. Does the Effectiveness of Performance appraisal system helps in

reducing thecommunication gap between superiors and subordinates?
Table no 3: Communication gap

2 Agree 41 41
3 Cannot Say 13 13
4 Disagree 28 28
55
TOTAL 100 100
GRAPH: 3 Communication gap
Analysis:

cannot say, 28 disagree and 8 strongly disagree that the Effectiveness of
Performance appraisal system helps in reducing the gap between superiors and
subordinates
Interpretation:
Fromtheabovegraph.i.e., the Effectiveness of Performance appraisal system
helps in reducing the gap between superiors and subordinates
Q4. Sufficient time has been given to you for discussion and guidance to
improve your performance?
Table no 4: Sufficiency in time
s.no Options Responses Percentage

2 Agree 17 17
3 Cannot Say 19 19
4 Disagree 56 12 12
TOTAL 100 100
Graph: 4 Sufficiency in time
Analysis:

cannot say, 12 disagree and 47 strongly disagree that sufficient time was given
to employees for discussion and guidance to improve their performance
Interpretation:
From the above graph.i.e., sufficient timehas not been given to employees for
discussion and guidance to improve their performance
Q5. Monetary and non-monetary rewards given are based onEffectiveness of
Performance appraisal rating?
Table no 5: Monetary and non monetary rewards

2 Agree 36 36
3 Cannot Say 11 11
4 Disagree 9 9
57
TOTAL 100 100
GRAPH: 5 Monetary and non-monetary rewards

Analysis:
From the above statementout of 100 respondents, 39 strongly agree, 36 agree,

11 cannot say, 9 disagree and 5 strongly disagree that monetary and non-
monetary rewards given are based on Effectiveness of Performance appraisal
ratings
Interpretation:
From the above graph.i.e., the monetary andnon monetary rewards given to
employees are based on Effectiveness of Performance appraisal ratings
Q6. If your performance is not good, does the organization conductscounseling

or training programs?
Table 6:conducting counseling or training programs

2 Agree 22 22
3 Cannot Say 10 10
58
4 Disagree 2 2
TOTAL 100 100
GRAPH: 6 conducting counseling or training programs
Analysis:

cannot say, 2 disagree and 2 strongly disagree that the organization conducts
counseling or training programs in case of bad performance
Interpretation:
From the above graphi.e., the organizationconducts counseling or training
programs in case of bad performance
Q7. Do you feel that Effectiveness of Performance appraisal system leads to

interpersonal conflicts among co-workers?
Table no 7: conflicts among co-workers

2 Agree 12 12
59
3 Cannot Say 17 17
4 Disagree 36 36
TOTAL 100 100
GRAPH:7conflicts among co-workers

Analysis:

cannot say, 36 disagree and 20 strongly disagree that the appraisal system lead
to interpersonal conflicts among co-workers
Interpretation:
From the above graph i.e., the appraisal system leadto interpersonal conflicts
among co-workers
Q8 Are the working conditions provided by organization helped in achieving

goals?
Table no 8: working conditions

60
2 Agree 43 43
3 Cannot Say 32 32
4 Disagree 10 10
TOTAL 100 100
GRAPH: 8 working conditions

Analysis:

cannot say, 10 disagree and 3 strongly disagree that the working conditions
provided by the organization helps in achieving their goals
Interpretation:
From the above graph i.e., the working conditionsprovided by the organization
helps in achieving their goal
Q9.Are you satisfied with the Feedback and review discussion methods in
performance appraisal system are satisfied?
Table no 9: feedback
61
2 Agree 36 36
3 Cannot Say 11 11
4 Disagree 9 9
TOTAL 100 100
GRAPH: 9 Feedbacks
Analysis:
cannot say, 9 disagree and 5 strongly disagree that employees are satisfied with
the feedback and review discussions in the appraisal system
Interpretation:
From the above graph i.e., the employees aresatisfied with the feedback and
review
Q10.Does the effectiveness of Performance appraisal system creates a
competitiveenvironmental work place?
Table no 10 environmental work places

62
2 Agree 43 43
3 Cannot Say 32 32
4 Disagree 10 10
TOTAL 100 100
GRAPH: 10 Environmental work places

Analysis:
cannot say, 10 disagree and 3 strongly disagree that the Effectiveness of
Performance appraisal system creates a competitive environmental work place.
Interpretation:
From the above graph. i.e., the Effectiveness of Performance appraisal system
creates a competitive environmental work place
Q11.Are the goals setting levels capable enough to stretch you capabilities to
the extreme limit?
Table no 11goal setting levels
63
2 Agree 44 44
3 Cannot Say 9 9
4 Disagree 8 8
TOTAL 100 100
GRAPH: 11goal setting levels

Analysis:
cannot say, 8 disagree and 4 strongly disagree that the goal setting levels
capable enough to stretch capabilities to an extreme limit
Interpretation:
From the above graph i.e., the goal setting levels capable enough to stretch
capabilities.
64
Q12. The present appraiser is the right person to appraise your performance?
Table no: 12 present appraisers
s.no Resp perce
Options onses ntage
1 Strongly
agree 35 35
2 Agree 44 44
3 Cannot Say 9 9
4 Disagree 8 8
5 Strongly
Disagree 4 4
TOTAL 100 100
GRAPH: 12 Present Appraiser

Analysis:
From the above statement out of 100 respondents, 35 stronglyagree, 44 agree, 9
cannot say, 8 disagree and 4 strongly disagree that the present appraiser is the right
person to appraise the employee performance.
Interpretation:
From the above graph i.e., the present appraiser is theright person to appraise the
employee performance
65
Q13. How often does your organization appraise the performance of its employees?
a) Annually b) semi-annually c) quarterly
Table no: 13appraising the performance of employees
S o N p
S.NO Options No. of Percentage
responses
1 annually 30 30
2 Semi- 20 20
annually
3 quarterly 50 50
total 100 100
Sales
30% ANNUALLY
SEMI-ANNUALLY
QUARTERLY
50%
20%
Graph: 13 appraising the performance of employees
Analysis:
From the above table, we can analyze that 30% of the employees says that appraise
of performance has been done annually, 20% says semi-annually and 50% says
quarterly
Interpretation:
From the above graph we can interpret that half of the employees were appraised
quarterly and few of them were appraised semi-annually.
66
Q14. What performance appraisal methods does you organization employ?
a) Rating scales b) checklists c) management by objectives d) 360 feedback
Table no:14 performance appraisal methods that organization employ
s.n options No. of percentage

o responses
1 Rating scales 35 35
2 Checklists 20 20
3 Management 20 20
by objectives
4 360 feedback 25 25
total 100 100
40%
35%
30%
25%
20%
15%
10%
5%
0%
rating scale checklists management by 360 feedback
objective
GRAPH:14performance appraisal methods that organization employe
Analysis:
From the above table 35% of the associate said that organization has employed rating
scale method and 20% for checklists,20%for management by objectives, and 25%
for 360 feedback.
Interpretation: From the above graph we can interpret that most of the
organizations employ rating scale method and few for other methods
67
Q15. The performance appraisal process is used for?
a) Promotion b) compensation package c) training d) succession planning e)

benchmarking
Table no:15 performance appraisal process

o responses
1 Promotion 10 10
2 Compensation package 30 30
3 Training 20 20
4 Succession planning 10 10
5 benchmarking 30 30
total 100 100
Sales
promotion
10% training
30% compensation package
succession planning
20% banchmarking
10%
30%
GRAPH:15 Performance appraisal process
Analysis:
From the above table we can analyze that 30% of employees feel that performance
appraisal process is used for compensation package and benchmarking, 10% feel that
it is used for succession planning and promotion 20% feel that it is used for training.
Interpretation:
68
From the above graph we can interpret that appraisal process is mainly used for
compensation package and benchmarking
Q16. What are the techniques that are used in the organization for accessing
performance?
a) Observation b) assessment and development center c) checklists d) other specific
Table no: 16 Techniques used in organization for accessing performance
s.n Option No. of percentag

o s response e
s
1 Observation 30 30
2 Assessment and 30 30
development
center
3 Checklist 20 20
4 Other specific 20 20
Total 100 100
30%
20%
10%
0%
GRAPH:16 Techniques used in organization for accessing performance
Analysis:
From the above table, we can analyze that 30% of techniques are opt for observation
and assessment and development center,20% of techniques are opt for checklist and
the other specific
69
Interpretation:
From the above graph, we can interpret that the majority of the techniques that are
used in the organization for accessing the performance are through observations and
assessment and development center
Q17. Who should own the performance management system?
a) Line manager b) HR manager c) employees
Table no: 17 owning the performance management system

o responses
1 Line 30 30
manager
2 HR 50 50
manager
3 employees 20 20
total 100 100
Sales
20%
30% line manager
hr manager
employees
50%
GRAPH:17 owning the performance management system
Analysis:
From the above table, we can analyze that 50% of the employees feel that
performance management system is owned by HR manager, 30% of employees
owned for line manager, 20% owned for employees
70
Interpretation:
From the above graph we can interpret HR manager will own the performance
management system.
Q18. What according to you would constitute psychological barriers to the

performance appraisal?
a) Feeling of insecurity b) being too modest c) causes for subordinates
Table no: 18psychological barriers to the performance appraisal
s.n Options No .of Percentage

o Response
1 Feeling of 20 20
insecurity
2 Being too 30 30
modest
3 Causes for 50 50
subordinates
Total 100 100
20%
50%
30%
feeling of insecurity being too modest causes for subordinates
Graph: 18psychological barriers to the performance appraisal
Analysis:
From the above table we can analyses that 50% of the associates feel causes of
subordinates, 30% feel because of being too modest, 20% feel because of feeling of
insecurity.
Interpretation:
71
From the above graph we can interpret that more than half of them opt that
psychological barriers to performance appraisal is because of causes for
subordinates.
Q19. As an appraiser which role do you think you perform better?
a) Judge b) helper c) both
Table no: 19 role of appraiser
s.n Option No of Percentage

o Response
1 Judge 55 55
2 Helper 20 20
3 Both 25 25
Total 100 100
60%
55%
50%
40%
30%
25%
20%
20%
10%
0%
judge helper both
Graph: 19 Role of Appraiser
Analysis:
From the above table we can analyze that 55% of them feel judge role is better for
appraiser, 25% feel helper is better, 20 % feel both is better.
Interpretation:
72
From the above figure we can interpret that most of them feel judge role is suitable
for appraiser.
Q20. Do you believe that linking reward to performance would?
a) Motivate employees b) compound problems c) attrition rate d) financial stability
Table: 20 linking rewards to performance
s.n Options Response Percentage

o
1 Motivate 50 50
employees
2 Compound 10 10
problems
3 Attrition rate 10 10
4 Financial 30 30
stability
Total 100 100
30%
50%
10%
10%
motivate employees compound problems Attrition rate financial stability
Graph 20: Linking rewards to performance
Analysis:
From the above table we can analyses that 50% of them feel that linking reward to
performance is to motivate employees, 30% for financial stability, 10% for attrition
rate and compound problems.
73
Interpretation:
From the above graph we can interpret that more than half of them link to motivate
employees.
CHAPTER – 7
FINDINGS,
SUGGESTIONS
&
CONCLUSIONS
74
FINDINGS
 55% of respondents agree with the statement i.e., the formal appraisal done by the
organization matches with the self-assessment of employees.
 33% of respondents agree with the statement i.e., the present criterion is sufficient to
judge their performance.
 64% of respondents strongly agree with the statement i.e., the organization conducts
counseling or training programs in case of bad performance.
 36% of respondents disagree with the above statement i.e., the appraisal system lead
to interpersonal conflicts among co-workers.
 43% of respondents agree with the above statement i.e., the working conditions
provided by the organization helps in achieving their goals.
 52% of respondents agree with the above statement i.e., the current appraisal system
is motivating employees in the organization.
 24% of respondents strongly disagree with the statement i.e., the appraisal system
make employees to work under stress.
 39% of respondents strongly agree with the statement i.e., the employees are satisfied
with the feedback and review discussions in the appraisal system.
 54% of respondents agree with the statement i.e., the individual performance and
feedback system is helpful in career development of employees.
75
SUGGESTIONS
 Instead of annual reviewmidterm review of employee performance is beneficial.
 The Effectiveness of Performance appraisal system helps inreducing the gap between
superiors and subordinates
 Effectiveness of Performance appraisal system helps superiors to know their
employees in better way.
 Sufficient timehas not been given to employees for discussion and guidance to
improve their performance.
 Formal appraisalsystems help in discovering their true potential for higher
responsibilities.
 The appraisal system leadsto interpersonal conflicts among co-workers.
 The Effectiveness of Performance appraisal system helps to improve quality of
employees work
 The present appraiser is theright person to appraise the employee performance.
76
CONCLUSIONS
 The present appraisal system is an effective one.
 Introduction of a computerized system will make the Effectiveness of Performance
appraisal system effective.
 Instead of annual review midterm review of employee performance is beneficial.
 The Effectiveness of Performance appraisal system helps in reducing the gap between
superiors and subordinates.
 Effectiveness of Performance appraisal system helps superiors to know their
employees in better way.
 Sufficient time has been given to employees for discussion and guidance to improve
their performance
 Formal appraisal systems help in discovering their true potential for higher
responsibilities.
 The monetary and non-monetary rewards given to employees are based on
Effectiveness of Performance appraisal ratings.
77
BIBLIOGRAPHY
 P Subba Rao (2005):- “Personnel and Human Resource Management” Himalaya
Publishing House, Mumbai, P133-135.
 Aswathappa K (2008):- “Human Resource Management”, Tata Mc Graw Hill, N

Delhi, P233.
 Shashi, K. Gupta and Rosy Joshi (2004):- “Human Resource Management”, Kal
Publishers, New Delhi, P18.1-18.03.
WEBSITES
 www.hrmguide.net
 www.reliancecommunications.com
 www.hrlinks.com
 www.google.com
 www.hr.com
78
QUESTIONNAIRE
Name of Associate: EMP Code:

Designation: Unit:
Q1.Does the present appraisal system is a computerized system one?

Q2. Midterm review of employee performance instead of annual review is beneficial?
Q3. Does the Effectiveness of Performance appraisal system helps in reducing
thecommunication gap between superiors and subordinates?
Q4. Sufficient time has been given to you for discussion and guidance to improve your
performance?
Q5. Monetary and non-monetary rewards given are based onEffectiveness of Performance
appraisal rating?
Q6. If your performance is not good, does the organization conductscounseling or training
programs?
Q7. Do you feel that Effectiveness of Performance appraisal system leads to interpersonal
conflicts among co-workers?
Q8 Are the working conditions provided by organization helped in achieving goals?
Q9.Are you satisfied with the Feedback and review discussion methods in performance
appraisal system are satisfied?
Q10.Does the effectiveness of Performance appraisal system creates a
competitiveenvironmental work place?
79
Q11.Are the goals setting levels capable enough to stretch you capabilities to the extreme
limit?
Q12. The present appraiser is the right person to appraise your performance?
Q13. How often does your organization appraise the performance of its employees?
a)Annually b) semi-annually c) quarterly

Q14. What performance appraisal methods does you organization employ?
a) Rating scales b) checklists c) management by objectives d) 360 feedback
Q15. The performance appraisal process is used for?
a) Promotion b) compensation package c) training d) succession planning e) benchmarking
Q16. What are the techniques that are used in the organization for accessing performance?
a) Observation b) assessment and development center c) checklists d) other specific
Q17. Who should own the performance management system?
a) Line manager b) HR manager c) employees
Q18. What according to you would constitute psychological barriers to the performance
appraisal?
a) Feeling of insecurity b) being too modest c) causes for subordinates
Q19. As an appraiser which role do you think you perform better?
a) Judge b) helper c) both
Q20. Do you believe that linking reward to performance would?
a) Motivate employees b) compound problems c) attrition rate d) financial stability
80

Assessing Effectiveness of Performance Appraisals

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Assessing Effectiveness of Performance Appraisals

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CHAPTER – 1

According to Randall S. Schuler “Effectiveness of Performance appraisal is a

According to Edward Flippo “Effectiveness of Performance appraisal is the

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

YEAR: Mar 17, 2017,

• To judge the ability of an individual employee to perform his task

Performance appraisal is a continuous process in every large scale organization

• Recognize, reward and support effective performance

Discuss the research design, research problems, sources of data, questionnaire,

• An employee perform to be considered an outstanding employee

CHAPTER 1: INTRODUCTION: It consists of introduction to the topic, need and

CHAPTER 2: LITERATURE REVIEW: It consist of literature review which

CHAPTER 3: COMPANY PROFILE: It comprises of company profile of

CHAPTER 4: DATA ANALYSIS AND INTERPRETATION: It consists of data

CHAPTER 5: CONCULSION AND SUGGESTIONS: It consists of more

Advantages of performance appraisals:

 They provide a document of employee performance over a specific period of

Disadvantages of performance appraisals:

 If not done right, they can create a negative experience.

Conceptual Framework Process of performance appraisal Setting performance

Limitations of Performance Appraisal

Process of Performance Appraisal

Communicating standards to employees

Measuring actual performance

Taking corrective action

Communicating standards to employees: The standards set forperformance should

Measuring actual performance: The performance may be measuredthrough

Comparing actual with standards: The actual performance is comparedto

Discussing reports with employees: The assessment reports areperiodically

Benefits of Performance Appraisal:

For the Management

Challenges of Performance Appraisal

Employees Perception of Appraisal Systems

Performance Appraisal Techniques

Behaviorally Anchored Rating Scales (BARS):

Management by Objectives (MBO) Approach:

Assessment center evaluation:

The Balanced Scorecard:

Developing Employee Performance Appraisal Plans (EPAP):

The Reliance Group, founded by Dhirubhai H. Ambani, is India's largest private

Reliance Group, an offshoot of the Group founded by Shri Dhirubhai H Ambani

It was with this belief in mind that Reliance Communications (formerly

Reliance Communications. has’ a reliable, high-capacity, integrated

Today, Reliance Communications’ ‘is revolutionizing the way India

Nature of business carried:

Reliance communications business’ encompasses a complete range of telecom

We will offer unparalleled value to create customer delight and enhance

PRODUCTS AND SERVICES PROFILE:

Reliance Communications is one of India’s largest providers of integrated

Reliance Communications Ltd. (RCOM) is an Indian Internet accessand

In November 2015, Reliance Communications entered into an agreement to

In 2002, it launched CDMA Operations in 22 circles and became a pan India

On 25 May 2012, RCom announced a price reduction of 61% on its 3G

Reliance Communications operates in 22 telecom circles and offers services on

Uttar Pradesh (East)

Jammu and Kashmir

(under 3G ICR with

Uttar Pradesh (West)

Reliance Telecom Limited (RTL) operates in Madhya Pradesh, West

He is the Chairman of the Reliance Group; including, Reliance

Key Indicators of Reliance Group:

 Reliance Life Insurance is in partnership with Nippon Life

 Member of Wharton Board of Overseers, The Wharton School,