Saher Performance Appraisal Complete

THE STUDY OF PERFORMANCE APPRAISAL
A project submitted to
University of Mumbai for partial completion of the degree of
Bachelor of Management Studies
Under the faculty of Commerce
By
SAHER NISAR AHMED SHADULWALE

ROLL NO: - 87
Under the Guidance of
ASST.PROF. SAEE SAWANT
SHREE LR TIWARI DEGREE COLLEGE OF ARTS, COMMERCE & SCIENCE

Shree L.R. Tiwari educational campus, Kanakia Park,
Mira road, Thane, Maharashtra - 401107
MARCH 2022
SHREE LR TIWARI DEGREE COLLEGE OF ARTS, COMMERCE & SCIENCE
Shree L.R. Tiwari educational campus, Kanakia Park,
Mira road, Thane, Maharashtra - 401107
Certificate
This is to certify that Ms.SAHER NISAR AHMED SHADULWALE has worked

and duly completed her Project Work for the degree of Bachelor's in Commerce
(Management Studies) under the Faculty of Commerce in the subject of Human
Resource and her/him project is entitled, “THE STUDY OF PERFORMANCE
APPRAISAL ” under my supervision.
I further certify that the entire work has been done by the learner under my guidance
and that no part of it has been submitted previously for any Degree or Diploma of
the any University.
It is her own work and facts reported by her personal findings and investigations.
Seal of
the
College
Name and signature of
Guiding teacher
Date of Submission:
Declaration by learner
I the undersigned Ms. SAHER NISAR AHMED SHADULWALE here by,

declare that the work embodied in this project work titled “THE STUDY OF
PERFORMANCE APPRAISAL”, forms my own contribution to the research
work carried out under the guidance of Asst.Prof. SAEE SAWANT is result of my
own research work and has not been previously submitted to any other University
for any other Degree/Diploma to this or any other University.
Wherever reference has been made to previous works of others, it has been clearly
indicated as such and included in the bibliography.
I here by further declare that all information of this document has been obtained and
presented in accordance with academic rules and ethical conduct.
SAHER NISAR AHMED

SHADULWALE
Name and signature of the
learner
Certified by
ASST.PROF. SAEE SAWANT

Name and signature of the Guiding teacher
Acknowledgment
It is my pleasure to thank all the people who have helped me directly or indirectly
in completion of this project work. I take this humble opportunity to express my
gratitude to all of them.
I would like to acknowledge the following as being idealistic channels and fresh
dimensions in the completion of this project.
I take this opportunity to thank the University of Mumbai for giving me chance to
do this project.
I would like to thank my Principal, Dr. Sanjay Mishra for providing the necessary
facilities required for completion of this project. I take this opportunity to thank our
Coordinator Asst.Prof. Saee Sawant for his moral support the guidance.
I would also like to express my sincere gratitude towards my Project Guide
Asst.Prof. Saee Sawant whose guidance and care made the project successful.
I would like to thank my College Library, for having provided various reference
books and magazines related to my project.
Lastly, I would like to thank each and every person who directly or indirectly helped
me in the completion of the project especially my Parents and Peers who
supported me throughout my project.
INDEX
Chapter Sub
Title of the chapter Page no.
no. chapter
1. Introduction 1- 18
1.1 Brief introduction 1-6
1.2 Case Study introduction 7-9
1.3 Company Profile 10 - 12
1.4 Introduction of Insurance 13
1.5 History of Insurance Sector 14
1.6 Insurance Market Present 16
2. Research methodology 19 – 40
2.1 Scope & Objective 19- 38
2.2 Research methodology 39 - 40
3. Review & Literature
4. Data Analysis , Interpretation and Presentation 41 - 66
5. Findings, Conclusions and suggestions 67 - 72
5.1 List of Findings 67 - 69
5.2 Conclusion 70
5.3 Suggestions and recommendations 71 - 72
• Bibliography 73 - 74
• Appendix 75
INTRODUCTION OF TOPIC
From immemorial time, man has continuously assessed their capability with others. This urge to
do better has resulted in his continuously evolution which is vital for the growth of any business.
Performance Appraisal (PA) is one such tool to measure the performance of an employee.
Employee performance appraisal is an effective way to determine the performance of the
employees in an organization. Performance Appraisal (PA) is mainly used to determine the wage
increase, promotions, transfer and layoffs, termination of services & the training and development
to the employees in an organization. It serves as a tool to determine the future of the organization
and visualize the career growth of the employees.
Performance Appraisal (PA) is normally done by senior executives and the senior manager in the
organization to appraise the employee for their performance and also to find out difficulties while
meeting their goals. During this period of carrying out the process the appraiser faces the problem
in rating the subordinate/employee/peer and sometime they may rate their subordinate wrongly,
which will block the whole purpose of the appraisal system.
From user testing, the traditional appraisal system found to be efficient in the issues like: it helps
to evaluate the true abilities of employees, help employees to understand organizational goals, and
to provide fast and effective feedback. The users found the system easy to understand and use and
were more satisfied with the overall effectiveness of the system.
Focus of the study of this is to identify the areas in Performance Appraisal System that would help
in the organizational development. Every organization has made it mandatory to have this
appraisal done once in a year to measure their employee performance. Hence, there should be
well-defined appraisal procedure, which is properly used to evaluate employee’s performance.
This study report aims at covering all aspects related to performance.
In order to make this report comprehensive, sample appraisals are also provided. This further case
study was conducted at Bajaj Allianz life insurance co. ltd, New Delhi
The objective of the questionnaire was to obtain employees’ opinion on performance appraisal
(PA) system in their organisation.
The Structural questionnaire prepared for HR survey comprised of two parts:
First part regards the “demographic” of the respondents, asking their name, designation,
qualifications and department in the company (Vice President, Senior HR consultants, Business
Development Executive), their tenure with the organisation and total experience.
The demographic characteristics of the respondent group were as follows. There is Vice President
who has experience of work since 15 years in the organisation, Senior HR consultants who work
experience of 1-5 years’ experience, Business development executive who work experience of 0-
1 years.
Second part of the questionnaire consisted of “quantitative and qualitative statements”. In order
to identify importance of the factors in determining.
COMPANY PROFILE
Missio n: To beco me a responsib le cust omer focused market leader. We st ill st r ive
to underst and t he insurance needs o f t he consumer s and t ranslat e it int o affordable
product s t hat deliver value for mo ney.
Vision:
To be t he first -cho ice insurer for cust o mers.
To be t he preferred emplo ye e for st aff in t he insurance indust r y.
To be t he number one insurer for creat ing shareho lder value.
Bajaj Allian z Life In suran ce

Is t he fast est growing pr ivat e life insurance co mpany in I nd ia.
Current ly have over 300000 sat isfied cust omers.
Have Customer care centers in 156 cities with 28000 Insurance Consultant providing the finest
customer service.
Bajaj Allianz Gener al I nsurance Co mpany Limit ed is a jo int vent ure bet ween
Bajaj Aut o Limit ed and Allianz AG of Ger many. Bot h enjo y a reput at ion o f
expert ise, st abilit y and st rengt h.
Bajaj Allianz General I nsurance received t he Insurance Regulat or y and

Develo pment Aut hor it y (IRDA) cert ificat e of Regist rat ion (R3) on Ma y 2 n d , 2001
to conduct General I nsurance business ( including Healt h I nsur ance business) in
India. The Co mpany has an aut hor ized and paid up capit a l o f Rs.110 crores. Baja j
Aut o ho lds 74% and Allianz ho lds t he remaining 26%. AG, Ger many.
In it s first year of operat ions t he company has acquired t he NO. 1 st at us amo ng
t he pr ivat e non- life insurers. As on 31 s t March 2003, Bajaj Allianz Genera l
Insurance maint ained it s leader ship posit ion by gar ner ing a premium inco me o f
Rs.300 Crores. Bajaj Allianz also became one of t he few co mpanies t o make a
profit in it s first full year of ope rat ions. Bajaj Allianz made a pro fit aft er t ax o f
Rs.9.6 crores.
Bajaj Allianz t oday has a net work of 40 offices spr ead across t he lengt h and
breadt h of t he count r y. Fro m Surat to Sliligur i and Jammu t o
Thiruvanant hapuram, all t he 38 o ffices ar e int erco n nect ed wit h t he Head Office
at Pune.
In t he first half o f t he current financ ial ye ar, 2004 -05, Baja j Allianz generat ed a
premiu m inco me o f Rs.405 crores, achieving a growt h of 84% and regist er ed a
52% growt h in Net profit o f Rs. 20 Crores over t he last y ear for t he same per iod.
In t he financial year 2003 -04, t he premium ear ned was Rs.480 Crores, which is
a jump o f 60% and t he pro fit zoo med by 125% to Rs. 21.6% Crores.
Shar eho lders & Promot ers
Bajaj Aut o Limit ed is t he largest ma nufact urer of t wo and t hree-wheeler s

in I ndia and also one o f t he largest manufact urers in t he wor ld. Baja j Aut o has
been in operat io n for over 55 year s. As a promot er of Baja j Allianz Genera l
Insurance Co mpany Lt d., Bajaj Aut o has t he fo llo wing t o offer:
Vast dist r ibut ion net work.
Knowledge o f Indian consumer s.
Financia l st rengt h and st abilit y t o support t he insurance business
Allianz Group provides it s more t han 60 millio n cust omers worldwide wit h a
co mprehensive range o f ser vices in t he ar eas o f Prop ert y and casualt y insurance,
Life and healt h insurance,
Asset management and bank ing.
In fiscal year 2005, Allianz's t ot al revenues amount ed t o some 100.9 billio n

euros. At t he end o f 2005 Allianz Group had more t han 1.26 t rillio n euros in
asset s under management . Of t his, 743 billio n euros wer e asset s managed for t hir d
part ies.
CORE COMPETENCIES AT BAJAJ ALLI ANZ LIFE INSURANCE

Trust
Claims P hilosophy Cust omer Or ient at io n
Experienced and Expert Servicing Team
Super ior Techno logy
Unique For ms o f Risk Co ver

INTRODUCTION OF INSURANCE
INTRODUCTION
The Insurance sector in India governed by Insurance Act, 1938, the Life Insurance Corporation
Act, 1956 and General Insurance Business (Nationalisation) Act, 1972, Insurance Regulatory and
Development Authority (IRDA) Act, 1999 and other related Acts. With such a large population
and the untapped market area of this population Insurance happens to be a very big opportunity
in India. Today it stands as a business growing at the rate of 15-20 per cent annually. Together
with banking services, it adds about 7 per cent to the country’s GDP.In spite of all this growth the
statistics of the penetration of the insurance in the country is very poor. Nearly 80% of Indian
populations are without Life insurance cover and the Health insurance. This is an indicator that
growth potential for the insurance sector is immense in India. It was due to this immense growth
that the regulations were introduced in the insurance sector and in continuation
“Malhotra Committee” was constituted by the government in 1993 to examine the various aspects
of the industry. The key element of the reform process was Participation of overseas insurance
companies with 26% capital. Creating a more efficient and competitive financial system suitable
for the requirements of the economy was the main idea behind this reform.
Since then the insurance industry has gone through many sea changes. The competition LIC
started facing from these companies were threatening to the existence of LIC .since the
liberalization of the industry the insurance industry has never looked back and today stand as the
one of the most competitive and exploring industry in India. The entry of the private players and
the increased use of the new distribution are in the limelight today. The use of new distribution
techniques and the IT tools has increased the scope of the industry in the longer run.
HISTORY OF INSURANCE SECTOR
The business of life insurance in India in its existing form started in India in the year 1818 with
the establishment of the Oriental Life Insurance Company in Calcutta. Some of the important
milestones in the life insurance business in India are given in the table 1.
Table 1: Milestone’s in the life insurance business in India
Year Milestones in the life insurance business in India
1912 The Indian Life Assurance Companies Act enacted as the first statute to
regulate the life insurance business
1928 The Indian Insurance Companies Act enacted to enable the government to
collect statistical information about both life and non-life insurance
businesses
1938 Earlier legislation consolidated and amended to by the Insurance Act with
the objective of protecting the interests of the insuring public.
1956 245 Indian and foreign insurers and provident societies taken over by the
central government and nationalised. LIC formed by an Act of Parliament,
viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the
Government of India.
The General insurance business in India, on the other hand, can trace its roots to the Triton
Insurance Company Ltd., the first general insurance company established in the year 1850
in Calcutta by the British. Some of the important milestones in the general insurance business
in India are given in the table 2.
Table 2: Milestone’s in the general insurance business in India
Year Milestones in the general insurance business in India
1907 The Indian Mercantile Insurance Ltd. set up, the first company to transact
all classes of general insurance business
1957 General Insurance Council, a wing of the Insurance Association of India,
frames a code of conduct for ensuring fair conduct and sound business
practices
1968 The Insurance Act amended to regulate investments and set minimum
solvency margins and the Tariff Advisory Committee set up.
1972 The General Insurance Business (Nationalisation) Act, 1972 nationalised
the general insurance business in India with effect from 1st January 1973.
107 insurers amalgamated and grouped into four companies viz. the
National Insurance Company Ltd., the New India Assurance Company
Ltd., the Oriental Insurance Company Ltd. and the United India Insurance
Company Ltd. GIC incorporated as a company.
Indian Insurance Market – History

Insurance has a long history in India. Life Insurance in its current form was introduced in 1818
when Oriental Life Insurance Company began its operations in India. General Insurance was
however a comparatively late entrant in 1850 when Triton Insurance company set up its base in
Kolkata. History of Insurance in India can be broadly bifurcated into three eras: a) Pre
Nationalisation b) Nationalisation and c) Post Nationalisation. Life Insurance was the first to be
nationalized in 1956. Life Insurance Corporation of India was formed by consolidating the
operations of various insurance companies. General Insurance followed suit and was nationalized
in 1973. General Insurance Corporation of India was set up as the controlling body with New
India, United India, National and Oriental as its subsidiaries.
The process of opening up the insurance sector was initiated against the background of Economic
Reform process which commenced from 1991. For this purpose Malhotra Committee was formed
during this year who submitted their report in 1994 and Insurance Regulatory Development Act
(IRDA) was passed in 1999. Resultantly Indian Insurance was opened for private companies and
Private Insurance Company effectively started operations from 2001.
Insurance Market- Present:
The insurance sector was opened up for private participation four years ago. For years now, the
private players are active in the liberalized environment. The insurance market have witnessed
dynamic changes which includes presence of a fairly large number of insurers both life and non-
life segment. Most of the private insurance companies have formed joint venture partnering well
recognized foreign players across the globe.
There are now 29 insurance companies operating in the Indian market – 14 private life insurers,
nine private non-life insurers and six public sector companies. With many more joint ventures in
the offing, the insurance industry in India today stands at a crossroads as competition intensifies
and companies prepare survival strategies in a detariffed scenario.
There is pressure from both within the country and outside on the Government to increase the
foreign direct investment (FDI) limit from the current 26% to 49%, which would help JV partners
to bring in funds for expansion.
There are opportunities in the pensions sector where regulations are being framed. Less than 10
% of Indians above the age of 60 receive pensions. The IRDA has issued the first license for a
standalone health company in the country as many more players wait to enter. The health insurance
sector has tremendous growth potential, and as it matures and new players enter, product
innovation and enhancement will increase. The deepening of the health database over time will
also allow players to develop and price products for larger segments of society.
State Insurers Continue To Dominate There may be room for many more players in a large
underinsured market like India with a population of over one billion. But the reality is that the
intense competition in the last five years has made it difficult for new entrants to keep pace with
the leaders and thereby failing to make any impact in the market.
Also as the private sector controls over 26.18% of the life insurance market and over 26.53% of
the non-life market, the public sector companies still call the shots.
The country’s largest life insurer, Life Insurance Corporation of India (LIC), had a share of
74.82% in new business premium income in November 2005.
Similarly, the four public-sector non-life insurers – New India Assurance, National Insurance,
Oriental Insurance and United India Insurance – had a combined market share of 73.47% as of
October 2005. ICICI Prudential Life Insurance Company continues to lead the private sector with
a 7.26% market share in terms of fresh premium, whereas ICICI Lombard General Insurance
Company is the leader among the private non-life players with a 8.11% market share. ICICI
Lombard has focused on growing the market for general insurance products and increasing
penetration within existing customers through product innovation and distribution.
Reaching Out to Customers No doubt, the customer profile in the insurance industry is changing
with the introduction of large number of divergent intermediaries such as brokers, corporate
agents, and bancassurance.
The industry now deals with customers who know what they want and when, and are more
demanding in terms of better service and speedier responses. With the industry all set to move to
a detariffed regime by 2007, there will be considerable improvement in customer service levels,
product innovation and newer standards of underwriting.
Intense Competition In a de-tariffed environment, competition will manifest itself in prices,
products, underwriting criteria, innovative sales methods and creditworthiness. Insurance
companies will vie with each other to capture market share through better pricing and client
segmentation. The battle has so far been fought in the big urban cities, but in the next few years,
increased competition will drive insurers to rural and semi-urban markets.
Global Standards While the world is eyeing India for growth and expansion, Indian companies are
becoming increasingly world class. Take the case of LIC, which has set its sight on becoming a
major global player following a Rs280-crore investment from the Indian government. The
company now operates in Mauritius, Fiji, the UK, Sri Lanka, Nepal and will soon start operations
in Saudi Arabia. It also plans to venture into the African and Asia-Pacific regions in 2006.
The year 2005 was a testing phase for the general insurance industry with a series of catastrophes
hitting the Indian sub-continent.
However, with robust reinsurance programmes in place, insurers have successfully managed to
tide over the crisis without any adverse impact on their balance sheets.
With life insurance premiums being just 2.5% of GDP and general insurance premiums being
0.65% of GDP, the opportunities in the Indian market place is immense. The next five years will
be challenging but those that can build scale and market share will survive and prosper.
SCOPE & OBJECTIVE
Objectives of the Project
The basic objectives of this project is:
 To find out present performance appraisal system used in the company.
 To find about the employees views for the system adopted by the company to appraise
their performance.
 To know about the working scheme of the company.
 To suggest some measures for improving the methods to appraise the performance of the
workers.
What is Performance Appraisal?
“Performance appraisal is a systematic and objective way of judging the relative worth or ability
of an employee in performing the task. Performance appraisal helps to identify those who are
performing their assigned tasks and those who are not and the reasons for such performance.”
Modern Appraisal:-
Performance appraisal may be defined as a structured formal interaction between a subordinate

and supervision , that usually takes the form of a periodic interview (annual or semiannual), in
which the work performance of the subordinate is examined and discussed with a view to
identifying weakness and strengths as well as opportunities for improvement and skills develop-
ment.
In many organizations but not all appraisal results are used, either directly or indirectly, to help
determine reward outcomes. That is the appraisal results are used to identify the better performing
employees who should get the majority of available merit pay increases, bonuses and promotions.
By the same token, appraisal results are used to identify the poorer performers who may require
some form of counseling, or in extreme cases, demotion, dismissal or decreases in pay.
(Organizations need to be aware of laws in their country that might restrict their capacity dismiss
employees or decrease pay). Whether this is an appropriate use of performance appraisal – the
assignment and justification of rewards and penalties – is very uncertain and contentious matter.
Performance appraisal is used for: -
Identifying employees for salary increases, promotion, transfer and layoff or termination of
services.
Determining training need for further improvement in performance.
Motivating employees by indicating their performance levels.
Establishing a basis for research and reference for personnel decisions in future.
Goals of the Performance Appraisal System: -
For supervisors, the process of performance management is one of the most important leadership
responsibilities. The performance appraisal system has three primary goals
To provide a formal means of constructive, open and honest communication between the
employees and his/her supervisor.
To enhance employee development through performance feedback and through the identification
of future professional development activities.
Who Should Conduct the Appraisal?
The individual (supervisor) who has the authority to make hiring recommendations and to assign
work to the employee should be the person responsible for completing the appraisal. Supervsors
who donot directly observe or otherwise measure the outcomes of a given employee’s job
performance should seek input from individuals who do directly observe the employee (eg.A crew
leader, group leader, area co-ordinator, and other workers). This may be the case, especially in
larger departments/units.
The Performance Appraisal Process

The figure outlines the performance
appraisal process. Each step in the process is crucial and is arranged logically.
Performance Standard and Goals
Performance standards and goals are the basis from which employee performance is measured.
The written performance appraisal should reflect how well the employee performed against
defined job responsibilities and previously established goals and objectives. Effective goals and
objectives must be specified, measurable and reasonable and have a time frame.
Specific: - Objective and precise language is essential when developing performance goals and
objectives. Supervisors should use terms and descriptions, which have the same meaning to the
supervisor and the employee. Detailed points rather than vague descriptions are important for
understanding and documentation.
Measurable: - Goals and objectives should be written so that accomplishment or degrees of

accomplishment can be objectively measured.
Reasonable: - Goals and objectives which are too high or rigid may actually inhibited an
employee`s performance. Individuals may become discouraged and give up if perceive
expectations to be unattainable. Goals and objectives should be reasonable given time frames,
circumstances and departmental/unit expectations.
Time frame: - A specific period of time for accomplishment should be identified with each goals
and objectives
METHODS OF PERFORMANCE APPRAISAL: -
Terms used to describe the various type of rating systems as well as a definition or performance
appraisal is as follows:
Behavioral Anchored Rating Scales:- The terms used to describe a performance rating that
focused on specific behaviors or sets as indicators of effective or ineffective performance ,
rather than on broadly stated adjectives such as “average, above average, or below average”.
Other variations were.
Behavioral observations scale.
Behavioral expectations scale.
Numerically anchored at scales.
Checklists: - The term used to define a set of adjectives or descriptive statements. If the rather
believed the employee possessed a trait listed, the rather checked the item , if not the other
left the item blank, rating score from the checklist equaled the number of checks.
Critical Incident Technique :- The term used to describe a method of performance appraisal
that made list of statements of very effective and very ineffective behavior foreplay. The lists
have been combined into categories , which vary with job .Once the categories had been developed
and statements of effective and ineffective behavior had been provided ,the evaluator prepared a
log for each employee. During the evaluation period , the evaluator recorded examples of critical
behaviors in each of the categories and the log has been used to evaluate the employee at the
end of the evaluation period.
Forced Choice Method: - This appraisal method has been developed to prevent evaluators from
rating employees to high. Using this method, the evaluator has to select from a set of descriptive
statements that apply to the employee. The statements have been weighted and summed to at,
effectiveness index.
Forced Distribution:- The term used to describe an appraisal system similar to grading on a
curve. The evaluator had been asked to rate employees in some fixed distribution of categories.
One way to do this has been to type the name of each employee on a card and ask the evaluators
so sort the cards into piles corresponding to rating.
Graphic Rating Scale:- The term used to define the oldest and most widely used performance
appraisal method. The evaluators are given a graph and asked to rate the employees on each of the
characteristics can vary one to one hundred. The rating can be a matrix of boxes for the evaluator
to check off or a bar graph wh-ere the evaluator checked off a location relative to the evaluators
rating.
Narrative or Essay Evaluation:- This appraisal method asked the evaluator to describe strengths
and weakness of an employee’s behavior. Some companies still use this method exclusively ,
whereas in others , the method has been combined with the graphic rating scale.
Management by Objective:- The management by objectives performance appraisal method has

the supervisor and employee get together to set objectives in quantifiable terms.
Paired Comparison :- The term used to describe an appraisal method for taking employee. First
the names of the employees to be evaluated have been placed on separated sheets in a
predetermined order , so that each person has been compared with all other employees to be
evaluated. The evaluator then checks the person he or she felt had been the better of the two on
the criterion for each comparison. Typically the criterion has been the employees over all ability
to do the present job.
Ranking:- The term ranking has been used to describe an alternative method of performance
appraisal where the supervisor has been asked to order his or her employees in terms of
performance from highest to lowest.
Weighted Checklist:- The term used to describe a performance appraisal method where
supervisors or personnel specialists familiar with the jobs being evaluated prepared a large list of
descriptive statements about effective and ineffective behavior on jobs.
Purpose of Traditional Performance Appraisal
Performance appraisal for evaluation using the traditional approach has served the following
purposes:-
Promotion, separation and transfer decision.

Feedback to the employee regarding how the organization viewed the employee`s performance.
Evaluations of relative contributions made by individuals and entire departments in achieving
higher-level organization goals.
Criteria for evaluating the effectiveness of selection and placement decisions including the
relevance information use the decision within the organization.
Reward decisions, including merit increases, promotions and other rewards.
Ascertaining and diagnosing training and development decisions
Criteria for evaluating the success of training and development decisions.
Information upon which work scheduling plans, budgeting and human resources planning can be
used.
Two serious flaws in the traditional approach in the performance appraisal exist. The flaws
are:Organizational performance appraisal is typically primarily concerned with the past rather than
being forward looking through the use of setting objectives or goals.
Performance appraisal is usually tied to the employees` salary reviewed. Dealing with salary
generally overwhelmed and block creative, meaningful or comprehensive consideration of
performance goals.
Developmental Performance Approach Purposes
The developmental approach to performance appraisal has been related to employees as

individuals. This approach has been concerned with the use of performance appraisal as a
contributor to employee motivation, development and human resources planning. The
development approach contained all of the traditional overall organizational performance
appraisal purposes and the following additional purposes:
Provided employees the opportunity to formally indicate the direction and level of the employee`s
ambition.
Show organizational interest it employee development ,which was cited to help the enterprise
retain ambitious , capable employees instead of losing the employees to competitors.
Provided a structure for communications between employees and management to help clarify
expectations of the employee by management and the employee.
Provide satisfaction and encouragement to the employee who has been trying to perform well.
Expectation from a Manager doing a Performance Appraisal
The following is typically expected from company manager when doing performance appraisal:
Translate organizational goals into individual job objective.
Communicate management`s expectations regarding employee performance.
Provide feedback to employee about job performance in light of management`s objectives. Coach
the employee on how to achieve job objectives/requirements. Diagnose the employee`s strengths
and weaknesses.
Problem of criterion:-
A brand definition of criterion is “that which is to be predicated”. This definition refers to the
evaluative standards, which measures are easy if the job is clearly defined but difficult if it is
broad. At lower level of an organization there are specific jobs and certain tangible and objective
standards of performance can be identified.
Irrespective of the level by and large most companies use eleven performance measures:
Quantity of work
Quality of work
Waste and brokerage
Money earned
Job knowledge
Job tenure
Absenteeism
Rate of advancement
Self-judgment
Judgment by peers
Judgment by supervisors.
Instructions for using performance appraisal system
Purpose:
The performance evaluation system is used to evaluate employees past work performance, develop
a work plan for the next review period and determine what resources are needed for improving
performance to become more effective. Evaluations also develop employee’s potential through
training and counseling. The process is designed to be interactive between the employee and the
supervisor with the following objectives in mind:
Use to recognize and reward employees for positive work behavior. Use the results as a basis for
appropriate personnel actions.
Encourage employees to continuously improve, support team endeavors, develop professionally
and perform at their maximum potential.
Communicate and clarify the goals and objectives of the division, department and the City in
relation to the employees` work expectation
Involve employees in improving their effectiveness and performance.
Provide an employee improvement plan where performance is rated below standard.
Performance Evaluation System:
The performance evaluation form is used for all performance reviews. This includes probationary
evaluations (expect Police and Fire have their own process), annual evaluation and special
evaluation for regular full time and regular part time employees. The evaluation periods are
generally twelve months, expect for special evaluations, which may be for shorter periods of time.
Merit step increases are conducted on the employees` anniversary date (assuming satisfactory
performance) and not during the annual performance review.
Supervisor Responsibility:
Each department will conduct employee evaluations for all employees in the department during
the same month. Human resources will notify department heads 30 days prior to when evaluations
are due. Each supervisor completing the performance evaluation should review the following
instructions, the rating criteria definitions and familiarize him or herself with the procedure prior
to competing the evaluations. Upon completion of the evaluation form by the supervisor (rater)
and the reviewer (one level above the rater), then the rater will meet with the completed form for
signatures. Supervisors should provide written comments on the evaluation form for each
performance criteria and list specific examples. Use N/A if the rating criteria are not applicable.
The supervisor is responsible for completing the evaluation process at the beginning of the rating
period and again at 6 months to monitor progress and adjust time lines if necessary. At that time,
a new 12-month work plan is established with the employee and the process repeats itself.
Supervisors shall coordinate the discussion of performance evaluations with employees in a
manner that allows privacy. The supervisor shall have the employee to complete the Self
Performance Evaluation Form as a discussion tool.
Forms:
There are two performance evaluation forms which you will always use:
The actual performance evaluation form which includes the cover page called the Summary
Worksheet.
The Employee Self-Evaluation form.
There are two other forms you may need to use:
The Performance Improvement Plan form (used when a rating is #1 Unacceptable or #2

Improvement needed), and attached to Performance Evaluation form.
Performance Goals from (used by department to follow up mid-year on goals set in evaluation),
optional and not returned to Human Resources.
Rating Process and Criteria:
5 = outstanding performance
4 = exceed expectations
3 = meet expectations
2 = needs improvement
1 = unacceptable
A rating of 1 or 2 requires the supervisor to complete a Performance Improvement Plan form to

document the problem, including specific examples, guidance on improvement, a specific
timetable for improvement, and a follow up evaluation to monitor progress.
Signature on the Evaluation Form
After the supervisor completes the performance evaluation with the employee, both the supervisor
and employee sign the form. The next level of review is the Reviewer, one level above the
supervisor performing the evaluation (the rater). Depending on the Department structure, the
reviewer could be the Department head, Deputy Director, or a Division Manager. The mid-year
review will only involve the employee and his/her supervisor with their signatures and the mid-
year process does not go into the personnel file.
Evaluation When a New Supervisor is Appointed:
If the employee has an evaluation due and supervisor is appointed, the new supervisor likely has
not had the opportunity to properly evaluate the employee`s performance. In this instant, the new
supervisor will evaluate the employee after 90 days. If possible, the supervisor that is leaving will
do a close out evaluation for his/her employees prior to leaving.
Steps to complete the annual performance evaluation procedure:
Step 1: Notice to department heads: human resources will notify department heads 30 days prior
to when performance evaluations are due for full time and part time regular employees in their
department. Managers/supervisors have 30 days to complete the performance evaluations, obtain
signature and provide the original the human resources office for filling in the employee’s
personnel file. The supervisor shall also retain a computer copy/file copy for the midyear review
process. Human resources will remind supervisors to schedule probationary evaluations on their
calendar.
Step 2: Blank performance evaluation forms: managers/supervisors obtain the performance

evaluation forms.
Step3: Review job description; review the employee’s job description to see if any changes are
necessary. If there are increased responsibilities /scope of work or a change in qualifications
forward your edits to human resources for review. Minor differences in workload or added
assignment that are industry or technology changes do not require a change to the job description.
(Individual employees do not amend their job descriptions; this task is for the manager)
Step 4: Self-evaluation form: provide a copy of the self-evaluation form to the employee. If the
employee does not want to complete the form, he/she shall check the box and sign at the bottom
of the form and return it to the supervisors. This completed form is used as a tool for discussion
while the supervisors are completing the employees’ evaluation.
Step 5: Complete the performance evaluation rating forms: The managers /supervisors complete
each section in performance evaluation forms (page 2-3plus). If a section does not apply note N/A
for not applicable. Written comments are required and should include examples that support the
rating the specific job element. Section 1to 3(Technical knowledge, customer service and
quality/quantity of work) apply to all positions. For section 4(Attendance), the supervisors should
review the employee’s attendance record, scheduled time away from the job and use of breaks.
Section5 (Safety and Risk management) applies to all jobs and should include notice of any
accident, injuries, equipment’s usage or other safety related issues. Section6 is only for department
heads, managers, supervisors and lead workers. Next, complete the section work plan for the next
rating period completion date. This list achievable goals and projects as well as areas to improve
upon. Next, complete the training and development section. The raters the complete the summary
worksheet cover pages for the evaluation form.
This is done last and is and overall rating considering all the rating sectors. The performance goal
forms (optional based on department head discussion is a departmental tool used during the
midyear review of monitor progress, completion date or makes comments concerning the goals.
keep goals to a realistic number (3 to 5) and ones that are achievable we all have a tendency to put
down more goals that we can reasonably achieve.
Also some employees in entry level job may have only 1 or 2 goals or a training course to complete
during the review period the supervisor should use their judgment and discussion their employees
to arrive at goals for the work Plan.
Step 6: “Unacceptable or Improvement Needed” Rating: If y rate an employee with a “1”

Unacceptable or “2” Improvement needed, you must complete the performance improvement plan
form. Have this completed form reviewed by the department head and Human Resources prior to
presenting it to the employee. This form is used to document performance and behavior problems
that need corrective action. Documentation is critical for this type of rating.
Note in the event the employee does not improve, the documentation is important for corrective
action. The notice of “Improvement needed” or “unacceptable” rating must include:
The problem areas of performance that are determined to be unacceptable. Identify performance
standards that must be achieved to meet acceptable standards. Provide a reasonable period of time
demonstrate improved performance.
Provide assistance to help them achieve the performance standards (training, counseling and
coaching, closer supervision, feedback).
Communicate with employee of the consequences if their performance does not improve and
provide a deadline, such as 30-90 days for a follow up review. However, this time line does not
preclude immediate disciplinary action at any time by department head if the employees`
performance worsens during the rating period.
Step 7: Mid-year Review: Mid-point through the 12-month rating period, the manager or
supervisor will meet with the employee to review his/her progress. This does not require any new
information to be prepared; merely review their performance, goals and deadlines with the
employee. At this step, you may adjust the deadlines as necessary.
Standard of Performance
Standards of performance are written statement describing how well a job should be performed.
Performance standards are developed collaboratively with employees, whenever possible and
explained to new employees during the first month on the job.
Job Description & Essential Functions

Strategic Plan & Annual Goals

Standards of Performance

Observation & Feedback

Performance Appraisal

Performance Development
The performance standard provides a benchmark against which to evaluate work performance.
While the job description describes the essential functions and the tasks to be done, the
performance standard defines how well each function or task must be performed in order to meet
or exceed expectations. The University also establishes general criteria for evaluating work
performance.
Standards of performance are usually:
Developed in collaboration with the employees who do the tasks or functions.

Explained to new employees within the first month on the job.
The rating describes the level of performance of the individual employee compared to a job
description and standard of performance.
E =Exceptional: Performance well exceeds expectations and is consistently outstanding.

A = Above Expectation: Performance is consistently beyond expectations.
S = Solid Performance: Performance consistently fulfills expectations and at times exceeds them.
I = Improvement Needed: Performance does not consistently meet expectation.
U = Unsatisfactory: Performance is consistently below expectations. Deficiencies should be
addressed as noted in the performance appraisal.
As performance manager, you will use these criteria to rate the employees` performance. At the
beginning of the appraisal period, review these ratings and the performance standards for each
position, which reports to you so that you can fairly evaluate the employees` performance.
Performance Standards a answer the question, “How will the employees and the performance
manager know when the employee is meeting or exceeding expectation for his or her position?”
Guidelines for Performance Standards
Keep in mind the following guidelines when writing your performance standards:
Performance standards should be related to the employees` assigned work and job requirements.
Your reporting system should be adequate to measure and report any quantitative data you list.
Quantifiable measures may not apply to all functions. Describe in clear and specific terms the
characteristics of performance quality that are verifiable and that would meet or exceed
expectations.
Accomplishment of organizational objectives should be included where appropriate, such as cost-

control, improved efficiency, productivity, project completion, process redesign or public service.
Checking Your Standards
After you have written your performance standards, check them against the questions in the
following list:
Are the standards realistic? Standards should be attainable and consistent with what is necessary
to get the job done. Standards for performance, which meets expectations, represent the minimum
acceptable level of performance for all employees in that position.
Are standards specific? Standards should tell an employee exactly which specific action and
results he or she is expected to accomplish.
Are the standards based on measurable data, observation, or verifiable information? Performance
can be measured in terms of timeliness, cost, quality and quantity.
Are the standards consistent with organizational goals? Standards link individual (and team)
performance to organizational goals and should be consistent with these goals.
Are the standards challenging? Standards may describe performance that exceeds expectations.
Recognizing performance that is above expectation or outstanding is crucial to motivating
employee.
Are the standards clear and understandable? The employees whose work is to be evaluated on the
basis of the standards should understand them. Standards should use the language of the job.
Are the standards dynamic? As organizational goals, technologies, operations or experiences

change, standards should evolve.
Use of Books and Software for Performance Appraisals
There are number of low-cost paperbacks that can be handed out to the managerial staff to help
them with their appraisals.
Since the advent of the use of computers, a number of educational organizations are now using
Performance Appraisal software.
Performance now Enterprise is a software tool for logging events, tracking goals, providing
effective feedback and writing employee reviews that maximize the potential of your team.
Flexible enough to adapt to your present review system,
Performance now helps you become a better manager and get the best from your employees. For
a little more upscale package Performance Impact Workplace is easy to use to set goals for
employees, but are having trouble following up on those goals.
Other software such as The Administrative Observer for school systems is one of the more
configurable stand-alone database package, with an intuitive graphic interface, geared towards the
business environment is MINDSOLVE (MVP). MVP is designed as an enterprise level
performance management software, incorporating appraisal, development resources, 360-degree
feedback, performance logging, etc. While the use of configurable software-based tools is
certainty making life easier, the use of such tools are much more valuable.
REVIEW OF LITERATURE
To carry the research, work the researcher has gone through a few reports, books, journals and
websites. The details regarding Life Insurance Industry, history, origin and growth of the
industry is also taken from some books, magazines etc. The sources of this information is as
follows:
 Catalogues and Broachers from various life insurance companies.
 Articles from magazines and newspaper.
 Information from various websites.

RESEARCH METHODOLOGY
a) Statement of the Problem
Every business organization large or small spend huge amount of money on Human Resource. It
is necessary therefore to find out how they are performing in order to design their future of the
organization. It may be to develop the employees or to correct the employees or to utilize
employee’s strength.
This study is directed towards probing Performance Appraisal system as tool for employees at
BAJAJ ALLIANZ LIFE INSURANCE.
b) Types of Research-
There is social research in a HR Survey with particular reference to Performance Appraisal as a

System for employees at BAJAJ ALLIANZ LIFE INSURANCE
Sample Design:
It is random sampling techniques where the samples were designed based on the nature of work,
qualification, experience, etc.
Sample Size:
20 Employees Respondents
Tool for collection of Data:
Structured questionnaire is used to collect the data. Copy of questionnaire is placed at the
Annexure of the project report.
Method of Collecting Data:
The questionnaires were floated to respondents through Researcher where the data was collected
and returned by HR Unit.
Method of Analysis:
The collected data were tabulated
Percentage of respond was worked out
Analysis is based on percentage frequency
Weight age is given to high percentage in response factor
Evaluation is made based on the analysis and the presumptions inherences are used, where every
data is ambiguous. Definitive evaluation is made every data is clear.
RESEARCH DESIGN
A research design is a basic plan which guides the researcher in the
collection and analysis of data required for practicing the research.
Infant the research design is the conceptual structure which the research
is conducted. It constitutes the ‘Blue Print’ for the collection,
measurement and analysis of the data. The study is carried out to
understand the Consumer Perception about life insurance policies in
Kottayam City. For this study the researcher used exploratory research
design. This research covers 50 consumers in Kottayam city, belonging
to various age groups.

SAMPLE DESIGN :
The process of drawing a sample from a large population is called sampling.
Population refers to the total of items about which information is defined. Well
selected samples may reflect fairly and accurately the characteristics of the
population.
Sampling Unit:
The sample unit of this survey was the customers having life insurance policies in
Kottayam City, Kerala.
Sample Size :
The sample size was 50 customers of different life insurance companies, from
various parts of the Kottayam City
Sampling Technique Adopted : Convenient sampling
: Source of data
After identifying and defining the research problem and determining specific
information required to solve the problem the researcher will look for the type and
sources of data which may yield the desired results, while deciding about the
method of data collection to be used for the study, there are two types of data. They
are as follows
Primary Data :
Primary data are those which are collected for the first time. Primary data is
collected by framing questionnaires. The questionnaire contained questions
which are both open-ended and closed-ended. Open-ended questions are

questions requiring answers in the responders own words. Closed-ended
questions are those wherein the respondent has to merely check the Appropriate
answer from a list of options available. Any doubts raised by the Respondents
were clarified to get the perfect answers from the distributors.
Open-ended questions yielded more insightful information, whereas closed-
Ended questions were relatively simple to tabulate and analyze.
Secondary Data:
Secondary data means data that are already available i.e. they refer to the data
which have been collected and analyzed by someone and can save both money
and time of the researcher. Secondary data may be available in the form of
company records, trade publications, libraries etc. Secondary data sources are
as follows:
 Company Reports
 Daily Newspaper
 Standard Textbook
 Various Websites
FIELD WORK
An interview-schedule and well-structured questionnaire is administered to the target
respondents to collect primary data (Copy of questionnaire is attached in the
appendix).Open and close ended questions are used in the questionnaire. The order
of the questions is in such a manner that they begin with simple questions and lead
on the questions that needed more involvement from respondents.The secondary data
are collected from periodicals, magazines, journals and internet.

OPERATIONAL DEFINITIONS OF THE STUDY
1. Marketing:
Marketing is a social and managerial process by which individuals and group
obtain what they need and want through creating, offering and exchanging
products of value with others.
2. Marketing Management:
Marketing Management is the process of planning and executing the
conception, pricing, promotion and distribution of individual and
organizational goals.
3. Marketing Research:
Marketing research is the systematic and objective search for, and analysis
of information relevant to the identification and solution of any problems in
the field of marketing.
4. Consumer Behavior:
Consumer behavior is the study of how individuals make decisions to spend
their available resources [time, money, efforts] on consumption related items.
5. Consumer Research:
Consumer research is the methodology used to study consumer behavior.
6. Market Segmentation:
Market segmentation is the process of dividing a market in the distinct
subsets of consumer with common needs or characteristics and selecting one
or more segments to target with distinct marketing mix.

7. Positioning:
Positioning is the act of designing the company’s offering and image so that
they occupy a meaningful and distinct competitive position in the target
consumer’s mind.
8. Perception:
Perception is the process by which an individual select, organizes, and
interprets information input to create meaningful picture of the world. For a
marketer to influence a motivated buyer to buy their products rather than a
competitor they must be careful to take the perception process into account
while designing their marketing campaigns. Perception therefore influence
what product consumer buys.
9. Brand:
A brand is a name, term, sign, symbol, or design or a combination of them,
used to identify the goods or services of one seller or group of seller and the
differentiate them from those of competitors.
10. Attitude:
An attitude is a person enduring Favourable or unfavorable evaluation,
emotional feeling, and action tendencies towards some object or idea
11. Values:
A value is a concept of the desirable. An internalized standard of evaluation
a person possession. These standards determine or guide an individual
evaluation of the many objects encountered in everyday life.

12. Attributes:
Attributes are the strengths and weaknesses of a brand that create attitudes
and are used by consumers to choose between brands that are relatively
similar or functionally equivalent.
LIMITATIONS OF THE STUDY
Although the study was carried out with extreme enthusiasm and careful
planning there are several limitations which handicapped the research viz.,
13. Time Constraints:
The time stipulated for the project to be completed is less and thus there
are chances that some information might have been left out, however
due care is taken to include all the relevant information needed.
14. Sample size:
Due to time constraints the sample size was relatively small and would
definitely have been more representative if I had collected information
from more respondents.
15. Accuracy:
It is difficult to know if all the respondents gave accurate information;
some respondents tend to give misleading information

OVERVIEW OF THE REPORT:
Introduction
This chapter talks about the importance of life insurance policies and consumer
perception of life insurance policies.
Design of the study
Design of the study includes Statement of problem, Scope of the study, Objectives
of the study, Review of literature, Research design, Sample design, Sources of data,
Field work, Operational definition of the study, Limitations of the study.
Profile of Respondents:
This chapter views the origin and growth of the Industry, Present status of Industry,
profile of the companies, and profile of sample unit.
Analysis and interpretation
In this chapter the data collected is compiled, processed and analyzed. Brief
descriptions of the findings are given in this chapter.
Summary of Findings and suggestions
This chapter contains the summary of findings and suggestions about improving the
service quality and product quality.

PROFILE OF THE INDUSTRY:
History and Development of Life Insurance
1. Life Insurance, in its present form, came to India from the United Kingdom with
establishment of a British firm, Oriental Life Insurance Company in Calcutta in
1818, followed by Bombay Life Assurance Company in 1823, the Madras
Equitable Life Insurance society in 1829 and Oriental Government security
Assurance company in 1874. Prior to 1871, Indian Lives were treated as sub-
standard and charged an extra premium of 15% to 20% . Bombay Mutual Life
Assurance Society, a Indian insurer which came into existence in 1871 was the
first to cover Indian lives at normal rates.
2. The Indian life Assurance Companies Act, 1912 was the first statutory measure
to regulate life insurance business. Later, in 1928, the Indian Insurance
Companies Act was enacted, to enable the government to collect statistical
information about both life and non-life insurance business transacted in India by
Indian and foreign insurers, including the provident insurance societies.
Comprehensive arrangement was, however, brought into effect with the
enactment of the Insurance Act, 1938. Efforts in this direction continued
progressively and the act was amended in 1950, making far-reaching changes,
such as requirement of equity capital for companies carrying on life insurance
business, ceiling on share holdings in such companies, submission of periodical
return relating to investments and such other information to the controller of
insurance as he many call for, appointment of administrator for mismanaged
companies, ceiling on expenses of management and agency commission,

incorporation of the Insurance association of India and formation of councils and
committees there of.
3. By 1956, 154 Indian insurers, 16 non-Indian insurers and 15 provident societies
were carrying online insurance business in India. On 19th January 1956, the
management of the entire life insurance business of 229 Indian insurers and
provident insurance societies and the Indian life insurance business of 16 non-
Indian Life insurance companies then operating in India, was taken over by the
central Government and then nationalized on 1st September 1956 when the Life
Insurance Corporation came into existence.
Reforms and Implications
The liberalization of the Indian insurance sector has been the subject of much heated
debate for some years. The sector is finally set to open up to private competition. The
Insurance Regulatory and Development Authority bill will clear the was for private
entry into insurance as the government is keen to invite private sector participation
into insurance. To address those concerns, the bill requires direct insurers to have a
minimum paid-up capital of Rest. 1 billion, to invest policy holder’s funds only in
India; and to restrict international companies to a minority equity holdings of 26
percent in any new company. Indian Promoters will also have to dilute their equity
holding to 26 percent over a 10 year period.
Over the past three year, around 30 companies have expressed interest in entering
the sector and many foreign and Indian companies have arranged alliances. Whether
the insurer is old or new, private or public, expanding the market will
Present challenges. A number of foreign Insurance Companies have set up
representative offices in India and have also tied up with various asset management
companies. Some of the Indian companies which have tied up with International
companies and its market shares are:
MARKET SHARES OF DIFFERENT FIRMS
Market share
Company Promoter Total capital
Based on
(Rs crore)
Premium
AMP Sanmar Reliance group 217 0.54

Aviva life Dabur 459 1.12
Bajaj Allianz Bajaj auto 368 6.12
HDFC Standard HDFC 250 2.96
Birla Sun Life Aditya Birla
400 1.84
Group
ICICI ICICI Bank

1085 7.11
Prudential
ING Vysya Vysya Bank 440 0.63

Kotak Mahindra, Kotak Mahindra
260 0.71
Old Mutual Bank
Max New York Max India 500 1.32

Met Life Jammu &Kashmir
355 0.4
Bank
Sahara Life Sahara India
100 0.06
Insurance
SBI Life SBI 350 1.52

Tata AIG Tata group 381 1.78
The likely impact of opening up of India’s insurance sector is that private players
may swamp the market. International insurers often derive a significant part of their
business from multinational operations. Multinational insurers are indeed keenly
interested as; perhaps their home markets are saturated while emerging countries
have low insurance penetration and high growth rates. A small share of a large and
growing market can be profitable and attractive.
Type of life insurance policies
Whole life insurance
Whole life is a form of permanent insurance, with guaranteed rates and guaranteed cash
values. It is the least flexible form of permanent insurance.
Universal life insurance
Universal life is similar to whole life, except that you can change the death benefit (the
money paid to the beneficiary when the insured person dies), the amount of premiums
and how often you pay the premiums.
Variable life insurance
Variable life insurance is the riskiest form of permanent insurance, but it can also give
you the best return for your money. Essentially, the life insurance company will invest
your insurance premiums for you. If the investments do well, the death benefit and cash
value of the policy go up. If they do poorly, they go down. It's a little like putting your
savings into the stock market.
Group life insurance
Many companies allow their employees to buy group life insurance through the company.
Usually, you can get very good rates for this insurance but you have to give the insurance
up when you stop working there. For that reason, group insurance can be a good way to
buy a little extra life insurance, but it does not make sense to make it your main policy.
There are a number of policies for specific insurance needs. Some of these include:
1. Family income life insurance.
This is a decreasing term policy that provides a stated income for a fixed period of
time, if the insured person dies during the term of coverage. These payments
continue until the end of a time period specified when the policy is purchased.
2. Family insurance.
A whole life policy that insures all the members of an immediate family --
husband, wife and children. Usually the coverage is sold in units per person, with
the primary wage-earner insured for the greatest amount.
3. Senior life insurance.
Also known as graded death benefit plans, they provide for a graded amount to be
paid to the beneficiary. For example, in each of the first three to five years after the
insured dies, the death benefit slowly increases. After that period, the entire death
benefit is paid to the beneficiary. This might be appropriate if the beneficiary is not
able to handle a large amount of money soon after the death, but would be in a
better position to handle it a few years later.

4. Juvenile insurance.
This is life insurance on a child. Coverage is paid for by an adult, usually the parents
or guardians. Such policies are not considered traditional life insurance because the
child is not producing an income that needs to be protected. However, by buying the
policy when the child is young, the parents are able to lock in an extremely low
premium rate and allow many more years of tax-deferred cash value buildup.
4. Credit life insurance.
This insurance is designed to pay off the balance of a loan if you die before you
have repaid it. Credit life insurance is available for many kinds of loans including
student loans, auto loans, farm equipment loans, furniture and other personal loans
including credit cards. Credit life insurance can be purchased by an individual.
Usually it is sold by financial institutions making loans, like banks, to borrowers at
the time they take out the loan. If a borrower dies, the proceeds of the policy repays
the loan directly to the lender or creditor.
5. Mortgage insurance
This decreasing term coverage is designed to pay off the unpaid balance of a
mortgage if you die before the mortgage is paid off. Premiums are generally level
throughout the term of the policy. The policy is usually independent of the
mortgage, meaning that the financial institution granting the mortgage is separate
from the insurance company issuing the policy. The proceeds of the policy are paid
to the beneficiaries of the policy, not the mortgage company. The beneficiary is not
required to use the proceeds to pay off the mortgage

6. Annuity
An annuity is a form of insurance that enables you to save for your
retirement. Basically, you give the insurance company money for a certain
period of time, and then after you retire they will pay you a certain amount
of money every year until you die. There are many different forms of
annuities.
. Most people who buy annuities are 55 or older
I
DATA ANALYSIS & INTERPRETATION
Findings, Analysis and Discussion-
In this system, employees and managers set expectations and prepare plans for work and
development at the beginning of the year. The key responsibilities and results (KRRs)
dimensions and behavioral expectations, and the criteria/standards for the performance
measurement are prescribed and clarified. Although they may be expressed differently for
different jobs, the basic areas of measurement for all jobs are quality, quantity, cost and
timeliness. To ensure that all employees receive feedback for maintaining or improving
productivity, two documented semi-annual feedback sessions are required. The supervisor uses
discretion to schedule informal feedback based on individual employees’ needs.
Although a case study with a limited number of respondents cannot be widely generalized, the
results should be quite interesting to mangers who would like to think critically and seek ways
to improve performance appraisal systems in organizations
II
Part A: Personal Data
To carry out any Project Study personal data needs detailed analysis because it is basic
foundation to understand correct profile of respondent. This shows their knowledge, mental
status and maturity. Educational background to understand the topic of the study so that they
can be related age.
Age Group No. of Respondents Percentage

21-30 14 70
31-40 2 10
41-50 4 20
Total 20 100
21-30Age 31-40
Group 41-50
Series1, 31-
40, 2, 10%
Series1, 41-50,
4, 20%
Series1, 21-30,
14, 70%
From the above data indicates that 70% of respondents are of 21-30 age group,
10% of respondents are of 31-40 age group and 20% of respondents are of 41-50
age group.
III
Gender-
Gender No. of Respondents Percentage

Male 12 60
Female 8 40
Total 20 100
Gender
Male Female
Series1,
Female, 8, 40%
Series1, Male,
12, 60%
The above data indicates that 60% of respondents are male, rest 40% of
respondents are female.
IV
Qualification-
Qualification No. of Respondents Percentage

Diploma 2 10
Graduate 6 30
Post Graduate 12 60
Total 20 100
Qualification Series1,
Diploma Graduate Post Graduate
Diploma, 2, 10%
Series1,
Graduate, 6,
Series1, Post 30%
Graduate, 12,
60%
In the above data, it is seen that 10% of respondents are diploma in qualifications,
30% of respondents are graduates and rest 60% of respondents are post graduate.
Designation-
V
Designation No. of Respondents Percentage
Manager 4 20
Officer 10 50
Junior Officer 4 20
VP 2 10
Total 20 100
Manager Qualification
Series1, VP,Officer
2, Junior Officer VP
10%
Series1, Manager,
Series1, Junior 4, 20%
Officer, 4, 20%
Series1, Officer,
10, 50%
From the above data, it is seen that 20% of respondents are Managerial
post, 50% of respondents are at officer post, 20% of respondents are
junior officer and 10% of respondents are VP in post.
VI
Part B: Research Data
1.Is the Performance Appraisal process user friendly?

a.  Yes b.  No
S.No. Options No. of Percentage

Respondents
1 Yes 16 80
2 No 4 20
Total 20 100
Yes Nouser friendly
Series1, No, 2,
20%
Series1, Yes, 8,
80%
Respondents and Responses-
VII
80% of the respondents are agreed to the above statement
It is user-friendly and easily accessible within the organization. It also provides a consolidated
view.
It captures an individual’s strengths, improvement areas and captures training courses
recommended.
It gives an opportunity to the employee to accept or decline.
It is very flexible.
20% of the respondents are disagreed to the statement

It is a very easier tool, where employee can fill in short time.
As an employee need to know what is required of them in order to work effectively by this.
VIII
2. Is Performance Appraisal conducted on time?

Respondents
1 Yes 12 60
2 No 8 40
Total 20 100
Time No
Yes
Series1, No, 8,
40%
Series1, Yes, 12,
60%
Respondents & Responses-

60% of the respondents agreed to the above statement
Performance Appraisal process will start on time.
There is a fixed schedule to meet listed in detail at the beginning of the process.
Process will be conducted as per the appraisal period.
40% of the respondents disagreed to the statement Process end will take long time
and unintentionally however measuring quality issues do cause delays.
Process Cycle should be reduced because there is always delay due to the
respective owners of the employee.
IX
3. Does Performance Appraisal process assess fairly?

Respondents
1 Yes 16 80
2 No 4 20
Total 20 100
Yes process
No assess fairly
Series1, No, 2,
20%
Series1, Yes, 8,
80%
X
80% of the respondents agreed to above statement
The process assessment is fair and justified with business units.
It is objective process.
Measuring an individual is fair.
The metrics are adequate.

20% of the respondents disagreed to the statement Across Business units does not yield right
results.
There are some issues with performing employees not getting proper result of the appraisal.
360 feedback systems should be there.
There is an element of subjectivity.
The presence of Appraiser and reviewer is aimed at eliminating the subjectivity.
XI
4. Is Performance Appraisal process simple to understand?

Respondents
1 Yes 17 85
2 No 3 15
Total 20 100
Yes simple
No to understand
Series1, No, 3,
15%
Series1, Yes, 17,

85%
XII
It is simple to understand and follow pre-process.

It clears to express as individual his strength and capacity.
It gives an opportunity to show case his achievement.
It helps to understand the required capacity to meet requirements.
10% of the respondents disagreed to the statements
A Performance Appraisal tool should be kept as simple as possible while meeting objectives.
A Performance Appraisal tools should be based on assessment of work quantity, quality, and
knowledge of job but not personality.
Process cycle time has to be reduced.
XIII
5. Do you receive an orientation on how to conduct appraisal process?

Respondents
1 Yes 12 60
2 No 8 40
Total 20 100
Orientation on
YesAppraisal
No process
Series1, No, 8,
40%
Series1, Yes, 12,
60%
XIV

Detailed orientation is given to all levels at the beginning of the process.
Various training programs are available and discussed with superiors.
40% of the respondents disagreed to the statement

Sometimes process will be failed due to some internal problems after getting orientated on the
Performance Appraisal system.
6. How much time is spent in preparing for feedback session?

a- 1 hour. b- 2 hour

Respondents
1 1 hour 8 40
2 2 hour 12 60
Total 20 100
Feedback Session Time
Series1, 1
hour, 8, 40%
Series1, 2
hour, 12, 60%
XV
40% of the respondents agreed to 1-hour statement

More time will be spent if one employee worked under different managers for different
assignments.
It is necessary to know the earlier manager’s feedback on the employee to assess properly.
In the Performance Appraisal system no records/data are available of confirmation appraisal
and project end appraisal.
60% of the respondents agreed to 2 hours statement
Approximately 2 hours, 1 hour for collecting feedback and brainstorming and 1 hour for filling
Review.
1 hour need to have things documented on how an employee has been appraised.
There different process and have their strengths or improvement plans throughout the year.
Feedback session involved revision of individual’s accomplishments during the appraisal
period. His/her strengths, improvement areas and training & development.
XVI
7. In your opinion how is overall Performance Appraisal system in
“BAJAJ ALLIANZ LIFE INSURANCE”?
a. Excellent b- Good c- Average d- Poor

Respondents
1 Excellent 10 50
2 Good 6 30
3 Average 4 20
4 Poor - -
Total 20 100
No. of Opinion about PA System
Respondents,
Poor, 0, 0%
No. of
Respondents,
Average, 2, 20% No. of
Respondents,
Excellent, 5,
No. of 50%
Respondents,
Good, 3, 30%
The above data predicts that the present appraisal system status in the company where 50% of
the employees responded to be excellent, 30% respondent to be good, and 20% responded as
average i.e. just satisfied.
Thus the majority of respondents have viewed their opinion that the present appraisal system is
good.
XVII
8. a) Are you satisfied with the current Appraisal system?

Respondents
1 Yes 14 70
2 No 6 30
Total 20 100
Satisfaction level for PA System
Series1, No, 6,
30%
Series1, Yes, 14,

70%
XVIII
It is simple to understand and follow pre-process.

It is clear to express as individual his strength and capacity.
It helps us to understand the required capacity to meet requirements.
30% of the respondents disagreed to the statement.
Suggested by some managers to have half yearly appraisal system.
Promotion, salary revisions can be dealt during annual appraisal.
XIX
8. b) If not then what are the areas need to be improved?
a. Time b. Process

Respondents
1 Time 7 35
2 Process 13 65
Total 20 100
Improvement required for PA system
Series1, Time,
7, 35%
Series1,
Process, 13,
65%
The above data predicts that 35% of the respondent need to change the duration of PA system
and rest of the 13 respondents i.e., 65% need to change the process of performance appraisal.
XX
9. Do you feel any difficulty in handling them?

Respondents
1 Yes 4 20
2 No 16 80
Total 20 100
Difficulty level for PA System
Yes 20%
No
80%
The above data indicates that 80% of the respondents feels no difficulty while handling
performance appraisal system while the rest of the 20% of the respondent feels little difficulty.
XXI
10. What other process can be included making the appraisal process much better?
a. MBO b. Critical Incident method c. Web based appraisal system

Respondents
1 MBO 8 40
2 Critical Incident 4 20
Method
3 Web based 8 40
appraisal system
Total 20 100
MBO Process Method
Critical Incident need to be included
Web based appraisal system
Series1, Web
based appraisal Series1, MBO,
system, 9, 45% 7, 35%
Series1, Critical
Incident
Method, 4, 20%
The above data indicates that equal percentage of respondent need to add MBO
as well as Web based appraisal system in their organization i.e. 40% and the rest
20% of other needs to include Critical Incident Method.
XXII
Present Appraisal System Satisfaction Level-
Particulars Respondents Percentage

Good 12 60
Satisfactory 6 30
Poor 2 10
Total 20 100
Series1,Satisfactory
Good Poor
Poor, 2, 10%
Series1,
Satisfactory, 6,
30% Series1, Good,
12, 60%
The above data indicates the present appraisal system status in the company where 60% of the
employees responded to good, 30% responded to satisfactory i.e. just satisfied and the
remaining 10% are not satisfied and who have not responded as poor.
Thus, the majority of the respondents have viewed their opinion that the present appraisal
system is good.
XXIII
Efficiency of the present appraisal system in employee development-

Yes 16 80
No 4 20
Total 20 100
Yes No
Series1, No, 4,
20%
Series1, Yes, 16,

80%
The above data shows that 80% respondents are accepting that Performance Appraisal has
aimed at development of the employee, and only 20% of them disagreed to the present system.
Hence, most of the respondents are agree that Performance Appraisal is aiming to the career
development of the employee.
XXIV
Present Appraisal system in setting work targets-

Yes 14 70
No 6 30
Total 20 100
Yes No
Series1, No, 6,
30%
Series1, Yes, 14,

70%
The above data reveals that possibility of setting targets for the different jobs they do under
different department, 70% respondents have said yes for the job they do. 30% respondents have
said no for the qualitative and creative jobs they do.
Therefore, majority of respondents have agreed the possibility of setting work targets.
The target for the job they do even though every job needs certain degree of creativity, which
depends upon the nature of job.
XXV
Actions taken after Performance Appraisal-

Useful discussions 11 55
No discussions 4 20
Only failure are 2 10
discussed
Genius Feedback is 3 15
given
Total 20 100
Series1,
Series1, Only Useful discussions No discussions
Genius
failure are Only failure are discussed Genius Feedback is given Feedback is
discussed, 2, given, 3,
10% 15%
Series1, Useful
Series1, No discussions, 11,
discussions, 4, 55%
20%
The above data shows actions taken after the Performance Appraisal by the appraiser the
management 55% respondents of them reported they take up useful discussions on the
evaluation and results, 4 of them i.e. 20% have denied and says no discussion, 10% said only
failures are discussed, no discussion is made on achievement, 15% agreed that they get genius
feedback on evaluation.
Thus, majority of respondents told they are useful discussions with appraiser after performance
appraisal.
XXVI
Availability of feedback in Performance Appraisal system-

Yes 17 85
No 3 15
Total 20 100
Yes No
Series1, No, 3,
15%
Series1, Yes, 17,

85%
The above data distributes whether the present appraisal system is used in getting the feedback
from the employees, 85% respondents told the present appraisal system helps in giving the
feedback from the employees and only 15% respondents told the existing appraisal system is
not helping in getting proper feedback from the employees.
Therefore, majority of the respondents are accepting that the present appraisal system help in
getting feedback from the employees.
XXVII
LIST OF FINDINGS
Key findings-
The following key findings are found while performing HR survey for identifying the impact
of Performance Appraisal (PA) system:
BAJAJ ALLIANZ LIFE INSURANCE follows two types of Appraisal process - Graphic
Rating Scales and Behaviorally Anchored Rating Scaling (BARS) which is user-friendly and
easily accessible within the organization.
Feedback is given to the employees about their performance.
Promotions schemes exist in the organization according to the employees’ performance. It
captures an individual’s strengths, improvement areas & captures training courses
recommended.
Performance Appraisal process will start on time and process will be conducted as per the
appraisal period.
There is a fixed schedule to meet listed in detail at beginning of the process.
The process assessment is fair and justified with business units.
It is objective process, measuring an individual is fair but the metrics are inadequate.
Across business units does not yield right results.
There are some issues with performing employees not getting proper result of the appraisal.
Process is clear to express as an individual his strengths and capacity.
It helps to understand the required capacity to meet requirements.
A Performance Appraisal system tools should be based on assessment of work performance not
personality.
A Performance Appraisal system tools should be kept as simple as possible while meeting
objectives.
Detailed orientation will be given at all level at beginning of the performance appraisal process.
XXVIII
Various training programs are available and discussed with superiors.
Sometimes process will be failed due to some internal problem after getting orientated on the
performance appraisal system.
Feedback session involved revisions of individual’s accomplishments during the appraisal
period. His/her strengths, improvement areas and training and development.
More time will be spent if one employee worked under different managers for assignments. It
is necessary to now the earlier manager’s feedback on the employee to assess properly. In
Performance Appraisal includes Quantitative and qualitative measures. It will clarify
organizational goals and expectations. It provides a mechanism for improving communication
between workers and superiors. It will decide upon future work requirements and objectives.
By this employee can discuss ideas, comments and suggestions.
Develop an action plan for identifying strategies which will make it possible for the employees
to achieve the objective discussed.
Performance Appraisal should be developed and implemented in consultation with employees

and superiors.
Performance Appraisal should operate equitable throughout the organization.
Promotions, salary revisions can be dealt during annual appraisal.
Group work and team work exist in an organization.
Majority of the executives give reasons for not completing their targets.
Review and reset of the task is not made uniformly.
XXIX
CONCLUSION
Most of the time Performance Appraisal (PA) for determining compensation increases, training
need identification and for promotions. The Performance Appraisal has delinked itself from
being an instrument of evaluating performance in the organization. Application of performance
and bringing about better performance management practices that enables organization to
improve their performance and bring in a performance driven culture is the need of the hour
rather performance appraisal only.
No Doubt without the commitment of the top management it would just be very difficult to
bring this sort of change. This in fact calls for a cultural change where in emphasis is not only
given to the Outcome or the end result but also on the process and effort made to achieve the
result. While discussing of the process & effort we need to focus on the leadership style, his
approach of consulting others, his ability to learn, his approach as a team member, his effort in
planning his days and week, and his overall orientation for subordinates development. All this
really calls for a different ball games wherein the concerned supervisors are able to emphasize
with his sub-ordinates and is really above to understand his emotional world.
In this era where every individual is competing with each other and where very tight schedules
are drawn without much scope for slippages, there is every probability that conflicts are going
to become a common affair. As such is has become all the more important that a supervisor
makes all out effort to understand emotional world of the sub-ordinate in terms of his hindering
and facilitating factors in terms of achieving his goals, what help the person growth and his own
ambition in the next 3-4 years, what is happening on his family front.
XXX
SUGGESTIONS & RECOMMENDATIONS
Though the employees feels that the company is fair in its appraisal process but still has lot to
in terms of making the appraisal process effective so that it results in enhanced employee
satisfaction and helps in retaining key employees of the company.
The project leaders are dissatisfied with the way responsibilities are distributed. The company
needs to works in this area and bring more clarity in the definitions of roles and responsibilities.
The Management should design training and development programs, career plans for their
employees on the basis of skills, knowledge needs.
Appreciate employees on the basis of employees’ work performance by Promotion or increment
in the salaries.
The performance culture of the company is another area where needs to be done to improve the
training regimen so that involvement of the employees is enhanced which finally would build
the morale and productivity would be enhanced.
Employees have doubts about the rewards and feel that the system is not too transparent. This
in the long run unattended would reduce the morale and may lead to attrition.
XXXI
Limitation of the Study-
Any research study will be restricted in scope by certain inherent limitations that are
participated by the choice of the research design. This study has the following limitations:
Even though the survey was conducted for the employee performance review the study does
not match with the entire population in the company.
Because of time constraints, the sample size is restricted to 20, which may not reflect the
opinion of the entire population in the company.
Since study was restricted to samples. Sample may behave or give different opinions at different
times because of their psychological temperament. This will affect the study.
Data could be collected from only 20 respondents as they were busy and could not respond so
well to the questionnaires.
Most of the organization hesitates to give confidential HR information which is needed for the
study like expectation in salary, periodical incremental percentage.
XXXII
BIBLIOGRAPHY
V S P Rao, Human Resource Management, Anurag Jain for Excel Books, New Delhi.
Dr. K Ashwathappa, Human Resource & Personal management, TATA
McGraw-Hill Publishing Company limited, New Delhi.
Prem Chadha, Performance Management
Google Engine Search
www.appraisals.naukrihub.com
www.performance-appraisal.com
Wikipedia -An Encyclopedia
XXXIII
QUESTIONAIRE
Part A:
Name of the Respondent : ______________________
Age : ______________________
Gender : ______________________
Qualification : ______________________
Designation : ______________________
Part B:
1. Is the Performance Appraisal process user friendly?
2. Is Performance Appraisal conducted on time?
3. Does Performance Appraisal process assess fairly?
4. Is Performance Appraisal process is simple to understand?
XXXIV
5. Do you receive an orientation on how to conduct appraisal process?
6. How much time is spent in preparing for feedback session?
a- 1 hour b- 2 hour
7. In your opinion how is overall performance appraisal system in
“BAJAJ ALLIANZ LIFE INSURANCE”?
a. Excellent b- good c- Average d- Poor
8. a) Are you satisfied with the current appraisal system?
b) If not, then what are the areas need to be improved?
a. Time b. Process
9. Do you feel any difficulty in handling them?
10. What other process can be included making the appraisal process much
Better?
a. MBO b. Critical Incident Method c. Web based Method.
XXXV
BENCH MARKING
Performance appraisal is very important for any company. It helps to make the companies
employee work better and show good result for the company too. This helps the company to
turn out to be profit making company.
As in BAJAJ ALLIANZ LIFE INSURANCE we are using the “Rating scales” or “Fair
comparison method” mostly to grade the performance of the employees. The method used by
the company is very fair and it is very easy to be adopted by the personnel. This method is very
convenient to be used. But the drawback associated with the method is that it has now became
an outdated method to be used because there are fifty percent chances of biasness to occur for
a particular employee by the raters.
After the survey and the conversation by the people of other company we came to know that
they have introduced the 360-degree performance appraisal in the company. Before they were
using the same method as used by BAJAJ ALLIANZ LIFE INSURANCE at times they used
“Forced choice method” also to rate the performance, which affected the companies working
to a great extent.
But when they realized that they are having complains from the workers, staff etc. they decided
to go for a change and now they incorporated 360-deree performance appraisal, the result of
using this method is that everyone in the company is satisfied by it.
Hence accordingly to my views I would also suggest the company to go for the change it the
method adopted by them for better results and employee satisfaction.
XXXVI

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THE STUDY OF PERFORMANCE APPRAISAL

SAHER NISAR AHMED SHADULWALE

ASST.PROF. SAEE SAWANT

SHREE LR TIWARI DEGREE COLLEGE OF ARTS, COMMERCE & SCIENCE

This is to certify that Ms.SAHER NISAR AHMED SHADULWALE has worked

I the undersigned Ms. SAHER NISAR AHMED SHADULWALE here by,

SAHER NISAR AHMED

ASST.PROF. SAEE SAWANT

1.1 Brief introduction 1-6

1.2 Case Study introduction 7-9

1.3 Company Profile 10 - 12

1.4 Introduction of Insurance 13

1.5 History of Insurance Sector 14

1.6 Insurance Market Present 16

2.1 Scope & Objective 19- 38

2.2 Research methodology 39 - 40

3. Review & Literature

4. Data Analysis , Interpretation and Presentation 41 - 66

5. Findings, Conclusions and suggestions 67 - 72

5.1 List of Findings 67 - 69

The Structural questionnaire prepared for HR survey comprised of two parts:

Bajaj Allian z Life In suran ce

Bajaj Allianz General I nsurance received t he Insurance Regulat or y and

Shar eho lders & Promot ers

Bajaj Aut o Limit ed is t he largest ma nufact urer of t wo and t hree-wheeler s

In fiscal year 2005, Allianz's t ot al revenues amount ed t o some 100.9 billio n

CORE COMPETENCIES AT BAJAJ ALLI ANZ LIFE INSURANCE

Claims P hilosophy Cust omer Or ient at io n

Experienced and Expert Servicing Team

Super ior Techno logy

Unique For ms o f Risk Co ver

Table 1: Milestone’s in the life insurance business in India

Year Milestones in the life insurance business in India

Indian Insurance Market – History

The basic objectives of this project is:

 To find out present performance appraisal system used in the company.

 To know about the working scheme of the company.

What is Performance Appraisal?

Performance appraisal may be defined as a structured formal interaction between a subordinate

Goals of the Performance Appraisal System: -

The Performance Appraisal Process

Performance Standard and Goals

Measurable: - Goals and objectives should be written so that accomplishment or degrees of

Management by Objective:- The management by objectives performance appraisal method has

Promotion, separation and transfer decision.

Developmental Performance Approach Purposes

The developmental approach to performance appraisal has been related to employees as

Waste and brokerage

There are two other forms you may need to use:

The Performance Improvement Plan form (used when a rating is #1 Unacceptable or #2

A rating of 1 or 2 requires the supervisor to complete a Performance Improvement Plan form to

Signature on the Evaluation Form

Evaluation When a New Supervisor is Appointed:

Steps to complete the annual performance evaluation procedure:

Step 2: Blank performance evaluation forms: managers/supervisors obtain the performance

Step 6: “Unacceptable or Improvement Needed” Rating: If y rate an employee with a “1”

Job Description & Essential Functions

Standards of performance are usually:

Developed in collaboration with the employees who do the tasks or functions.

E =Exceptional: Performance well exceeds expectations and is consistently outstanding.

Accomplishment of organizational objectives should be included where appropriate, such as cost-

Checking Your Standards

Are the standards dynamic? As organizational goals, technologies, operations or experiences