CHAPTER – 1

INTRODUCTION

1.1

PERFORMANCE APPRAISAL

INTRODUCTION TO HUMAN RESOURCE MANAGEMENT
Human Resource (or personnel) management, in the sense of getting things done through people, is an essential part of every manager‟s responsibility, but many organizations find it advantageous to establish a specialist division to provide an expert service dedicated to ensuring that the human resource function is performed efficiently. “People are our most valuable asset” is a cliché, which no member of any senior management team would disagree with. Yet, the reality for many organizations are that their people remain undervalued, under trained and underutilized. The market place for talented, skilled people is competitive and expensive. Taking on new staff can be disruptive to existing employees. Also, it takes time to develop „cultural awareness‟, product / process / organization knowledge and experience for new staff members.
FUNCTIONS OF HUMAN RESOURCE MANAGEMENT

Following are the various functions of Human Resource Management that are essential for the effective functioning of the organization:
    

Recruitment Selection Induction Performance Appraisal Training & Development

Recruitment The process of recruitment begins after manpower requirements are determined in terms of quality through job analysis and quantity through forecasting and planning. Selection The selection is the process of ascertaining whether or not candidates possess the requisite qualifications, training and experience required. Induction a) Induction is the technique by which a new employee is rehabilitated into the changed surroundings and introduced to the practices, policies and purposes of the organization. 1.1.1 DEFINITION Performance Appraisal is defined as the process of assessing the performance and progress of an employee or a group of employees on a given job and his / their potential for future development. It consists of all formal procedures used in working organizations and potential of employees. According to Flippo, “Performance Appraisal is the systematic, periodic and an important rating of an employee‟s excellence in matters pertaining to his present job and his potential for a better job.” Relationship of Performance Appraisal and Job analysis Performance appraisal is a formal, structured system of measuring and evaluating an employee‟s job related behaviors and outcomes to discover how

and why the employee is presently performing on the job and how the employee can perform more effectively in the future so that the employee, organisation, and society all benefit.

Job Analysis

Performance Standards

Performance Appraisal

Describes personnel

work

&

Translate job requirements into levels of acceptable or unacceptable performance

Describes the jobrelevant strengths & weaknesses of each individual

requirement

of a particular job

Job analysis sets out requirements, which are translated into performance standards, which in turn form the basis for performance appraisal.

assessing training needs. awarding pay increases. and the like.1.1. The emphasis in all these is to correct the problems. .2 Appraisal Process Objectives Appraisal of Performance  Establish job expectations  Design an Appraisal Programme  Appraise Performance  Performance Interview  Use Appraisal Data for Appropriate Purposes (a) Objectives of Appraisal: Objectives of appraisal include effecting promotions and transfers.

By the same token. a discussion is held with his or her superior to review the major duties contained in the job description. bonuses. Normally.appraisal results are used.but not all . demotion. that usually takes the form of a periodic interview (annual or semi-annual). or in extreme cases. That is. appraisal results are used to identify the poorer performers who may require some form of counseling. to help determine reward outcomes. (c) Design Appraisal Programme: Designing an appraisal programmes poses several questions which needs answers: They are: (I) formal versus informal appraisal (ii) How performance is to be assessed? (iii) Who are the raters (iv) What problems are encountered? (v) How to solve the problems? (vi) What should be evaluated? (vii) When to evaluate (viii) What methods of appraisal are to be used? Modern Appraisal Performance appraisal may be defined as a structured formal interaction between a subordinate and supervisor.(b) Establish Job Expectations: This includes informing the employee what is expected of him or her on the job. dismissal or decreases in pay. with a view to identifying weaknesses and strengths as well as opportunities for improvement and skills development. . (Organizations need to be aware of laws in their country that might restrict their capacity to dismiss employees or decrease pay.is a very uncertain and contentious matter. the appraisal results are used to identify the better performing employees who should get the majority of available merit pay increases. in which the work performance of the subordinate is examined and discussed. In many organizations . and promotions. either directly or indirectly.) Whether this is an appropriate use of performance appraisal – the assignment and justification of rewards and penalties .

Lack of reliability 3. Communicating the Standards 3.3 Characteristics of Performance Appraisal System: 1. Discussing the appraisal 6. Establishing performance standards 2. Multiple objectives 5. Formal procedures are used in the study.4 Process of Performance Appraisal System: The process of performance appraisal: 1. 3. Comparing the actual with the standards 5. It is scientific and objective study. Performance Appraisal is a process. The main purpose of Performance Appraisal is to secure information necessary for making objective and correct decision an employee. Taking Corrective Action Limitations of Performance Appraisal System : 1. Measuring Performance 4.1. Negative approach 4. 1.1. It is an ongoing and continuous process wherein the evaluations are arranged periodically according to a definite plan. 2.1. Lack of knowledge . Errors in Rating 2. It is the systematic examination of the strengths and weakness of an employee in terms of his job. 5. 4.

etc.  Team member who rate each other. but they encourage errors on the part of the raters. developing employees. The primary drawback of the ranking method is that the size of the . There are two types of graphic ratings. the second assesses behavioral aspects. who may depend too heavily on the form to define performance. especially if used in conjunction with words such as outstanding. Terms such as initiative dependability and cooperation are subject to many interpretations. average and poor. attendance. etc.1.  Outside sources. The first and common type lists job criteria such as quantity of work. such as decision making.  Employee‟s self appraisal.5 Methods in Performance Appraisal 1) Graphic Rating Method: It allows the rater to mark an employee‟s performance on a continuum.  Employees who rate their supervisors. Another drawback occurs when the descriptive words sometimes used in the sales have different meanings to different rulers.Who conduct the Appraisal? Anyone familiar with the performance of individual employees such as:  Supervisors who rate their employees. 2) Ranking Method: It lists all the employees from highest to lowest in performance. Graphic rating scale is easy to develop. with the specific behaviors listed and effectiveness of each rated. Some obvious drawback can be noted. 1.  Multi source appraisal. Often separate traits or factors are grouped together and the rate is given only one box to check.

Some essays are free form. Critical Incident: The manager keeps a written record of both highly favourable and unfavorable actions in employee‟s performance during the entire rating period. critical incidents and qualified scales by anchoring a rating scale with specific behavioral examples of good or poor performance. more equitable appraisals than the other tools. The basic idea is that such a person may take more objective view in appraisal as he is not under pressure as the supervisor of the employee may be. first not at all supervisor define what constitutes a critical incident in the same way. The drawbacks of it are. Also producing daily or weekly written remarks about each employee‟s performance take considerable time. 5) Field Review Method: In the field review method an employee is not appraised by his direct supervisor but by another person. This drawback can be overcome to some extent by assigning points to indicate the size of the gaps. the manager writes it down. The rater in this case. 4) Essay: It requires a manager to write a short essay describing each employee‟s performance during the rating period. The effectiveness depends on the supervisor‟s ability to write. usually from HR department. Further. Behaviorally anchored rating scale: it combines the benefits of narratives. while other are more structured formats and use prepared questions that must be answered. It proponents says it provides better. This format allows the rater more flexibility than other methods do. employees may become overly concerned about what their superiors write and began to fear the manager‟s „black book‟. 3) Narrative Method: Managers and HR specialists frequently are required to provide written appraisal information. appraises the employee based on the records of .differences among the individuals is not well defined. Documentation and description are the essence of the essay and the field review methods. When a critical incident occurs.

and then cross out the names of any not known well enough to rank. achievable. Pay incentives are often linked to results in reaching the objectives. This method is more suitable for the promotion of purposes. indicate the employee who is the highest and the next and the lowest until all the employees have been ranked. This is a basic system of appraisal. 6) Management by Objectives: Although a basic technique. The basic idea behind it is that the organization is concerned with the achievement of objective through the contribution of individual managers rather than on the basis of these traits. realistic and time specific). measurable. It can be undesirable consequences. group coercion. and satisfaction among those receiving the negative ratings. particularly at the managerial level. MBO introduced the smart criteria and is often achieved using set target. 7) Alteration Ranking Method: Ranking employees from best to worst on a trait is another option. It is a process agreeing upon objectives within an organization so that management and employees agree to the objectives and understand what they are. On a positive note. The application of this technique often succeeds or fails because of these interpretations. members of self managed teams at digital equipment corporation evaluate other . late coming. Objectives from MBO must be SMART (specific. is a system of evaluation of managerial performance against the setting and accomplishing of verifiable objectives. Then on a form. First list of all subordinates to be rated.output and other information such as absenteeism. 8) Peer Appraisal: This is used only 5% of thousand organizations and is a traditional one. it has many interpretations. The chances of bias are reduced to a great extent as HR person is supposed to be trained in appraisal mechanism. however one study found that negative peer ratings led to significantly lower performance. etc.

Helps in identification of personal strengths and weaknesses. Clarifies team roles and facilitates team building. along with the element of self appraisal. Appropriate parties – peers.6 Benefits of Performance Appraisals         Measures an employee‟s performance. Most 360 Degree Feedback system contains several common features. The feedback is generally used for training and development. Results in terms of commitment and productivity appear to be positive. rather than for pay increases. subordinates and customers. questionnaires on an individual. supervisors. 9) 360 DEGREE FEEDBACK Many firms have expanded the idea of upward feedback into what the call 360degree feedback. Plays major role in organizational training needs assessment and analysis. redefining priorities and objectives. Motivates the employee through achievement and feedback. for instance – complete survey. . 1. defining. Facilitates assessment and agreement of training needs. but also by peers and subordinates. 360 degree feedback is also known as the multi-rater feedback. Appropriates customer ratings are also included.team member‟s performance using participatory performance appraisal processes. whereby ratings are not given just by the next manager up in the organizational hierarchy. Once gathered in. the assessment from the various quarters are compared with one another and the results communicated to the manager concerned.1. Plays an important role in Personal career and succession planning. Helps in clarifying.

work attitude. The result are used for different purpose of promotion.  Plays an important tool for communicating the organization‟s philosophies. attendance. communication. strategies. values. conduct. Appraisal of Junior Management Staff In TTSL assistant supervisor to senior officer are appraised twice a year in the month of April and October. dependability.2 PERFORMANCE APPRAISAL SYSTEM IN TTSL TTSL follows a system of performance appraisal. . aims. Both the category is appraised twice a year.  Helps in counseling and feedback. The assessment is done following guidelines and is done on different eleven attributes of knowledge of work. discipline. subordinate development. The period of appraisal and methods of appraising is different for different category/group. increment etc. Supervisor and above. etc among its employees. priorities. quality of work. 1. The appraisal of trainee is done every quarter from the date of joining. Organization follows a separate system of appraisal for workers and the level Asst. Improves understanding and relationship between the employee and the reporting manager and also helps in resolving confusions and misunderstandings. initiative drive and resourcefulness. Each attribute is assigned 10 marks making a total of 220 (maximum marks) head of the department appraise the employee on different attribute. quantity of work. .

It has embarked on a growth path since the acquisition of Hughes Tele. over 350.3 COMPANY PROFILETATA TELESERVICES LTD Tata Teleservices Limited spearheads the Tata Group's presence in the telecom sector.000 employees worldwide and more than 3.1. and offers differentiated products and services under the TATA DOCOMO brand name.com (India) Ltd [renamed Tata Teleservices (Maharashtra) Limited] by the Tata Group in 2002. Tata Teleservices Limited now also has a presence in the GSM space. TATA DOCOMO arises out of the Tata Group's strategic alliance with Japanese telecom major NTT DOCOMO in November 2008. The company has rolled out GSM services in 14 of India's 22 telecom Circles in a quick span of under six months.5 million shareholders. The company is also the market leader in the fixed wireless telephony market with its brand Walky. The Tata Group had revenues of around US $75 billion in financial year 2008-09. The company plans to launch pan-India operations by the end of FY 2009-10. Tata Teleservices Limited is the pioneer of the CDMA 1x technology platform in India. and includes over 90 companies. It launched mobile operations in January 2005 under the brand Tata Indicom and today enjoys a pan-India presence through existing operations in all of India's 22 telecom Circles. through its joint venture with NTT DOCOMO of Japan. The company has recently introduced the brand Photon to provide a variety of options for wireless mobile broadband access. TATA DOCOMO has received a pan-India license to operate GSM telecom services-and has also been allotted spectrum in 18 telecom Circles. . Incorporated in 1996.

. Wireless TT Info-Services Limited. Tata Teleservices Limited is the pioneer of the CDMA (Code division multiple access) technology platform in India. The company is also the market leader in the fixed wireless telephony market with its brand Walky.000 towers. The company's network has been rated as the 'Least Congested' in India for last five consecutive quarters by the Telecom Regulatory Authority of India through independent surveys. In December 2008. serves over 58 million customers in more than 410.1 PRODUCTS AND SERVICES TATA Teleservices works under three brand names i.3. 2. Tata Teleservices Limited announced a unique reverse equity swap strategic agreement between its telecom tower subsidiary. Tata Teleservices Limited. wireless desktop phones.000 towns and villages across the country. with a bouquet of telephony services encompassing mobile services. and Quippo Telecom Infrastructure Limited-with the combined entity kicking off operations in early 2009 with 18.Today. The company has recently introduced the brand Photon to provide a variety of options for wireless mobile broadband access. TATA Indicom – Incorporated in 1996. along with Tata Teleservices (Maharashtra) Limited.e. public booth telephony. It launched mobile operations in January 2005 under the brand Tata Indicom and today enjoys a pan-India presence.000 towers by the end of FY 2010-11. The WTTIL-Quippo combine is targeting over 50. thereby becoming the largest independent entity in this space-and with the highest tenancy ratios in the industry. wire line services and enterprise solutions.

TATA Walky Tata Indicom proudly brings a revolutionary new home phone . TTSL and has already rolled out its services in various circles.Tata Indicom Walky with a unique 10 digit number for small & semi urban towns. as it stands to redefine the very face of telecoms in India. DOCOMO is also a global leader in the VAS (Value-Added Services) space. particularly integrating services at the platform stage. Virgin Mobile India will provide Tata Teleservices with experience and expertise in designing. Tokyo-based NTT DOCOMO is one of the world's leading mobile operators-in the Japanese market. marketing and servicing of “Virgin Mobile” branded products for the youth segment. Virgin Mobile branded services are being offered to the Indian consumers by Tata Teleservices through a brand franchise with Virgin Mobile. Tata Teleservices has received a pan-India license to operate GSM telecom services.brand is India‟s first national youth-focused mobile service. the company is clearly the preferred mobile phone service provider in Japan with a 50 per cent market share.TATA Docomo . under the brand TATA DOCOMO. Like Tata Teleservices. both in terms of services and handset designs. A superior . Virgin Mobile also provides services to its customers in GSM & CDMA technology. The launch of the TATA DOCOMO brand marks a significant milestone in the Indian telecom landscape. The Tata Group-NTT DOCOMO partnership will see offerings such as these being introduced in the Indian market under the TATA DOCOMO brand.is Tata Teleservices Limited's (TTSL) telecom service on the GSM (Global System for Mobile Communications) platform-arising out of the Tata Group's strategic alliance with Japanese telecom major NTT DOCOMO in November 2008. Virgin Mobile .

caller ID. calendar. with a Blackberry one does not have to be confined to their desk. . address book etc. with its innovative push mail services. In short. Tata Walky is available in both Prepaid and Postpaid versions. With Tata Photon Plus service you now have access to Mobile Internet at never before speeds. speaker phone.phone with advanced features like Internet. Blackberry Services Blackberry has become synonymous as a productivity enhancement tool. upload information anytime anywhere. Award-winning Blackberry solutions are designed to increase the efficiency of business by providing wireless access to phone. so that one can choose what suits their requirements best. With Tata Walky. the next generation technology for Hi speed Mobile Internet connectivity solution. task lists and business applications – all of this on a single device. its new Mobile Broadband Service. contacts. respond to mails. you control your monthly home phone budget. email. browser. TATA Photon Tata Teleservices introduced Tata Photon. One can seamlessly and conveniently access corporate information. where ever you are.

CHAPTER – 2 LITERATURE REVIEW .

a basic human tendency to make judgments about those one is working with. there is little chance of ensuring that the judgments made will be lawful. for the same may be said about almost everything in the field of modern human resourse management.. The human inclination to judge can create serious motivational.The history of performance appraisal is quite brief. The process was firmly linked to material outcomes. if any. informally and arbitrarily. naturally. should provide the . a pay rise was in order. as well as about oneself." Appraisal. But this is not very helpful.. was given to the developmental possibilities of appraisal. On the other hand. defensible and accurate. That is. Yet in a broader sense. it seems. says Dulewicz (1989). Little consideration. In the scale of things historical. appraisal really dates from the time of the Second World War . As a distinct and formal management procedure used in the evaluation of work performance.not more than 60 years ago. ethical and legal problems in the workplace. fair. appraisal was used to decide whether or not the salary or wage of an individual employee was justified. or a rise. If was felt that a cut in pay. the practice of appraisal is a very ancient art. it might well lay claim to being the world's second oldest profession! There is. a cut in pay would follow. If an employee's performance was found to be less than ideal. is both inevitable and universal. In the absence of a carefully structured system of appraisal. Its roots in the early 20th century can be traced to Taylor's pioneering Time and Motion studies. people will tend to judge the work performance of others. Without a structured appraisal system. including subordinates. if their performance was better than the supervisor expected. Performance appraisal systems began as simple methods of income justification. ".

the traditional emphasis on reward outcomes was progressively rejected. These observations were confirmed in empirical studies. it failed. early motivational researchers were aware that different people with roughly equal work abilities could be paid the same amount of money and yet have quite different levels of motivation and performance. began from that time.only required impetus for an employee to either improve or continue to perform well. but they were not the only element that had an impact on employee performance. discusses productivity improvement as representing one of the key competitive advantages of an enterprise. yes. PRODUCTIVITY The concept of productivity. as it is known today. such as morale and selfesteem. Pay rates were important. As a result. Sometimes this basic system succeeded in getting the results that were intended. For example. “Companies need to realize that gains in productivity are one of their major weapons to achieve cost and quality advantages over their competition. for example. but more often than not. could also have a major influence. the potential usefulness of appraisal as tool for motivation and development was gradually recognized. In the 1950s in the United States. perhaps the most important one (Singh et al. has been available for over two centuries and applied in many different circumstances on various levels of aggregation in the economic system. This is emphasized in the following way. It is argued that productivity is one of the basic variables governing economic production activities. It was found that other issues. Grossman (1993). generally defined as the relation between output and input. The general model of performance appraisal. 2000).” .

above-average productivity growth leads to relative declines in costs and prices. In domestic and international markets. good jobs. this increases the competitiveness of the firms of the progressive industries. While some authors point out that productivity is of profound importance for our development of welfare (Sohlenius et al. Improved productivity provides a proportionate offset to increases in wage rates and other input prices. 2) At the industry level. depend on productivity. Companies with higher productivity than the industry average tend to have higher profit margins. (Sumanth. profitability. 4) At the personal level. Conversely. looks at productivity from a wider perspective and claims that productivity is the central longrun factor determining any population‟s average standard of living. 2001). as advocated by numerous authors in literature (Slack et al. 1974). 3) At the company level. increasing productivity in all of one‟s activities is an important aspect of self-fulfilment. 1994). others describe productivity as one of the most important concepts in the field of manufacturing4 (Suh. below-average levels and rates of growth of productivity will ultimately lead to bankruptcy. This view is further supported by Christopher and Thor (1993) who argues that competitiveness. productivity is a major element of economic growth and progress. productivity is fundamental to profitability and survival. which consequently tend to grow faster than average. Thurow (1993). This is explained by Kendrick (1993) who describes how productivity influence the national level to the personal: 1) At the national level. 1990). High productivity means better job security and might also raise workers salary.Various authors from different viewpoints in the literature frequently describe the importance of productivity. it can also contribute to increased consumption. and living standards. However. (Drucker. for example. 2000). the use of performance measures is indeed an effective way to support productivity improvements and research concerning . thereby reducing the rate of inflation of output prices.

emotion or intuition .” A frequently used argument for the use of performance measures. This is even truer when rewards are tied to the performance measures. performance measurement can be described as an important aid to making judgments and to making decisions. Furthermore. Without productivity measurement. the knowledge in performance measurement is still not satisfactory: “Despite the importance of productivity measurement. “Without productivity objectives.” There are also many reasons besides productivity improvement for using performance measures. accurate. states the usefulness and importance of performance measurement in the following way. Further. which cannot be ignored.performance measurement is. is simply “what gets measured gets attention”. therefore. not supposition. In other words. as described by Wilson (1994). it does not have control. a business does not have direction. since companies can use performance measures to (Parker. how do they know that they are providing the products that their customers require?) • Help them understand their processes (to confirm what they know or reveal what they do not know) • Identify where problems. performance measures can be used to force an organization to focus on the right issues. Drucker (1974). useful tools are not widely available and are often misunderstood. bottlenecks and waste exists and where improvements are necessary • Ensure that decisions are based on facts. and sensitive means of measuring the efficiency of operations. of vital importance. 2000): • Identify success • Identify whether they are meeting customer requirements (unless they measure. for instance. Such indices lack effective.

The implementation of the performance measures Phase 3. Second. Then. is split into two main subdivisions. the use of the performance measures. This may involve computer programming to trap data already being used in the system and present them in a more meaningful form. the design of the performance measures. The use of the performance measures The first phase. the initial use to which they should be put is that of measuring the success of the implementation of that strategy. the development of a performance measurement system can be divided into three main phases. . the information and feedback from the measures should be used to challenge the assumptions and test the validity of the strategy. so that information currently not recorded is captured and it may involve completely new initiatives (Bourne et al.According to Bourne et al (2000). the actual performance measures are designed in accordance to the key objectives. First. this phase often begins with defining important strategic objectives of the company. can be subdivided again into identifying the key objectives to be measured and designing the measures themselves. is defined as when system and procedures are put in place to collect and process the data that enable the measurements to be made regularly. In other words. Phase 1. It may involve initiating new procedures. which are later broken down to more concrete key objectives to be achieved on minor levels in the company. Therefore. There is a strong consensus among researchers in this field that performance measures should be derived from strategy. “assessing the implementation of strategy” and “challenging the strategic assumptions” are two main subdivisions of the use of the performance measures. 2000). The second phase. The third phase. The design of the performance measures Phase 2. as the measures are derived from strategy. the implementation of the performance measures.

CHAPTER – 3 RESEARCH METHODOLOGY .

 To know the basic terms and concepts used in the field of performance evaluation. Performance appraisal is the most significant and indispensable tool for the management as it provide useful information for decision making in area ofpromotion and compensation reviews.  To find whether the employees are satisfied with current performance appraisal system .1 OBJECTIVE This project aims at studying the system of performance appraisal and its effectiveness TTSL. Thus broad objectives of the study include:  To know the present system of performance appraisal in TTSL  To know the extent of effectiveness of the appraisal system  To suggest certain measures for further improvement in the current system  To investigate and clarify how to evaluate and revise performance evaluation.  To find whether the employees are given promotion based on their performance.  To identify strengths and weaknesses in the current performance evaluation.3.

These studies help in a proper definition of the problem. These studies can be either:   Descriptive or Experimental . A typical research design of a company basically tries to resolve the following issues: 1. Determining Sampling Plan (1) Explorative Research Design: Explorative studies are undertaken with a view to know more about the problem. Its basic purpose is to identify factors underlying a problem and to determine which one of them need to be further researched by using rigorous conclusive research designs. Determining Data Sources 4. Determining Data Methods 3. Determining Data Collection Design 2. (2) Conclusive Research Design: Conclusive Research Studies are more formal in nature and are conducted with a view to eliciting more precise information for purpose of making marketing decisions.3. and development of specific hypothesis is to be tested later by more conclusive research designs. Developing Questionnaires 6.2 RESEARCH DESIGN: Research Design refers to "framework or plan for a study that guides the collection and analysis of data". Determining Primary Data Collection Methods 5.

Duration = Two (2) Months.3 SAMPLING PLAN Sample Size = 100 Employees Sample Area = TTSL.Thus.4 DATA COLLECTION Data Sources:     Secondary Data through Internet Primary Data through Questionnaire Contact Method Personal Interaction DATA PRESENTATION AND ANALYSIS:    Bar graphs Pie Diagrams Doughnuts . it was mix of both the tools of Research Design that is. 3. Explorative as well as Conclusive. 3.

CHAPTER – 4 DATA ANALYSIS AND INTERPRETATION .

about 35% of the employees are at the age category of 40-50.Table 1) Age wise classification of Employees in TTSL Age 18-30 Year 30-40 Year 40-50 Year Above 50 Year % 15 30 35 20 No. 30% of employees are at the age category of 30-40. . and 20 % of the employees are at the age category of above 50. of Responses 15 30 35 20 Age Wise Classification 35 30 Number of Employees 25 20 15 10 5 0 18-30 30-40 40-50 Above 50 Age of Employees INTERPRETATIONThe table above shows that about 15% of employees are at the age category of 18-30.

72% of the employees are aware of the performance appraisal system in the organization and remaining 28% are not aware of the Performance Appraisal System in the organization. Options Yes No % 72 28 No. .e. of Responses 72 28 Awareness of Techniques of Performance Appraisal 28% yes no 72% INTERPRETATIONThe study shows that majorities i.Table 2) Awareness of technique of Performance Appraisal being followed at TTSL among employees.

of Responses 2 24 44 30 Response 50 40 30 20 10 0 Fully Satisfied Satisfied Can't Say Dissatisfied No.Table 3) Employees opinion as to the present appraisal system. of Employees INTERPRETATION44% of the employees are satisfied by the Appraisal System of TTSL. 22% are dissatisfied . Only 4% are fully satisfied. Options Fully Satisfied Satisfied Can’t Say Dissatisfied % 2 24 44 30 No.

. of Employees INTERPRETATIONFrom the above diagram it shows that the achievement of work done by the employees 60% is discussed by the superiors and remaining 40% is not discussed. of Responses 60 40 Achievement of Work Objectives 60 40 20 0 Discussed Not Discusses 60 40 No.Table 4) Achievements of work objectives. Options Discussed Not Discussed % 60 40 No.

20% of the employees says that it is in the form of promotion. so this study shows that 35% of the employees says that reward is in the form of salary increment. 35% says that the reward in form of appreciation and 10% of the employees says that it is in the form of bonus payment. . of Responses 35 20 35 10 35 35 30 25 20 15 10 5 0 Salary Increment Promotion 20 35 10 Appreciation Bonus Payment No. of Employees INTERPRETATIONThe study shows that the reward is based on the performance of the employees.Table 5) Reward for Performance Reward Salary Increment Promotion Appreciation Bonus Payment % 35 20 35 10 No.

of Responses 68 32 Response No. of Employees 68 32 Yes No INTERPRETATION68% of employees in TTSL are appraised in their service period and rest 32% are not.Table 6) Number of employees appraised during their service period. Options Yes No % 68 32 No. . This means that employees are appraised often.

That shows that 80% are satisfied with the present system even though this includes satisfaction in varying degrees like the appraisal matches up to the respondents expectations sometimes. . this figure goes up to consist about 20% of the population. often or every time. of Responses 2 8 13 20 7 Response 20 18 16 14 12 10 8 6 4 2 0 Never Rarely Some times Often Every time No. If this can be combined with those who are of the opinion that their appraisal rarely matches up to their expectations.Table 7) How often does your Performance assessment match to your expectations? Options Never Rarely Sometimes Often Every time % 2 8 13 20 7 No. of Employees INTERPRETATIONThe breakup of the data clearly shows that 4% of the entire sample state that their appraisal have never shown a fair view of their performance.

of Employees Continous Once 0 20 40 60 80 100 INTERPRETATION92% of the employees want the Appraisal to be continuous.Table 8) Employee perception as to the frequency of appraisal. Options Once during Service Period Continuous Never Can’t Say % 2 No. . of Responses 2 92 0 6 92 0 6 Response Can't Say Never No.

. Options Quarterly Half yearly Yearly % 20 44 36 No.Table 9) If Continuous Appraisal. of Employees 44 20 36 Quarterly Half yearly Yaerly INTERPRETATION44 % of the employees think that the continuous appraisal should be held half yearly. 36% insist on yearly basis and 20% wants it to be on quarterly basis.what should be the gap between two appraisal period. of Responses 20 44 36 Response No.

of Responses 71 20 9 No. 71% of the employees are motivated by the Performance Appraisal System where as 7 % are demotivated and 20% are not at all effected by the system.Table 10) How Performance Appraisal affects the Productivity of Employees. of Employees Demotivated 9% Indifferent 20% Motivated 71% INTERPRETATIONIn TTSL. . Options Motivated Indifferent Demotivated % 71 20 9 No.

of Employees No. of Employees 22 12 6 Immediate Department Appraisal Supervisor Head Committee 6 Self Appraisal 2 Satisfied INTERPRETATION- Majority of responses were for the department head to appraise. A quarter also responded for the appraisal committee to do the appraisal.Table 11) Who should appraise? Options Your Immediate Supervisor Department Head Appraisal Committee Self Appraisal Satisfied % 6 No. . of Responses 6 22 12 6 2 22 12 6 2 No.

Table 12) Appropriate method of conducting the Performance Appraisal. . of Employees INTERPRETATION- Majority of the employees think that Management By Objective is the better way to evaluate performance in the company. Options Ranking Method Paired Comparison Critical Incidents MBO Assessment Centre 360 Degree % 12 0 20 58 4 6 No. of Responses 12 0 20 58 4 6 60 50 40 30 20 10 0 No.

CHAPTER – 5 CONCLUSION AND SUGGESTIONS .

The result obtained from the study that the performance appraisal system of TTSL is good. over 350. .CONCLUSION Tata Teleservices Limited spearheads the Tata Group's presence in the telecom sector. The Tata Group had revenues of around US $75 billion in financial year 2008-09. But some measures should be taken to meet it from good to excellent. Since the employees are working together for a long time the appraisers can accurately evaluate the performance of the appraisee.5 million shareholders. . Majority of employees are of the age above 50 and have good experience. The study helps me to get practical knowledge about how the performance appraisal is conducted in an organization and I consider it is a good opportunity to get exposure to the functioning of the organization. and includes over 90 companies.000 employees worldwide and more than 3.

 Feedback should be given to all the employees so that they can understand their strength and weakness and improve upon them.  Transparency into the system should be ensured through the discussion about employee‟s performance with the employee concerned and trying to find the out the grey areas so that training can be implemented to improve on that.SUGGESTIONS  The success of the performance appraisal system depends on the employee‟s belief on the appraiser who rates them.  A neutral panel of people should do the appraisal and to avoid subjectivity to a marked extent.  The job and role expected from the employees should be decided well in advance and that too with the consensus with them. So there should be rapport between the employees. . objective methods should be employed having quantifiable data.

ANNEXURES .

II year MBA.…………………………… 1. Achievement of work objectives are Discussed Not Discussed . What is your opinion as to the present Appraisal System of TTSL? Fully Satisfied Satisfied Can‟t Say Dissatisfied 4.…………… Above 50 2. I am undertaking the project work on “A study of Effectiveness of Performance Appraisal System in TTSL” as a part of my course curriculum. Age18-30 31-40 42-50 Department.ANNEXURE “A Study on the Effectiveness of Performance Appraisal System in KMML” Sir/Madam. Anubha Kandpal Name. Thank You. Are you aware of the Performance Appraisal Techniques being followed at TTSL? Yes No 3. I am a student of Sri Ramaswamy Memorial Institute of Science and Technology (SRM). Kindly help me in sparing sometime of your busy schedule and fill up the questionnaire to provide with true and fair information.

What is the appropriate method of conducting the Performance Appraisal? Ranking Method MBO Paired Comparison Assessment Centers Critical Incidents 360 Degree . If Continuous Appraisal.5.What should be the gap between two appraisal period? Quarterly Half Yearly Yearly 10. How often does your Performance assessment match to your expectations? Never Rarely Sometimes Often Every time 8. What should be the frequency of Appraisal at TTSL? Once during the service period Continuous Never Can‟t Say 9. What is the reward for the performance? Salary Incentive Promotions Appreciation Bonus Payment 6. How Performance Appraisal affects you? Motivated 11. Were you appraised during your service period? Yes No 7. Who should appraise you? Supervisor Self Appraisal Department Head Satisfied Appraisal Committee Indifferent Demotivated 12.

BIBLIOGRAPHY .

“Performance Appraisal – An Approach”.V. Eighth edition.com www.Rao & D.wikipedia.org www.com .google.F.T. Edwin B. Niyadi.  Human Resource Management.  Personnel Management. sixth edition.scribd. Pereira. Indian SITE REFERENCE www.BOOK REFERENCE  Recent Experience Human Resource Development. Flippo  A. editors . Gary Dessler.A.

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