PROJECT REPORT ON “PERFORMANCE APPRASIAL” (A Report submitted in partial fulfillment of the requirement for the degree of MASTER OF BUSINESS

ADMINISTRATION IN PONDICHERRY UNIVERSITY)

Submitted by Name -Anuradha Enrolment No- 2010390401 MBA -HRM

DIRECTORATE OF DISTANCE EDUCATION PONDICHERRY UNIVERSITY PONDICHERRY-605014 (2010-2012)

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CONTENTS
1. Certificate of guide 2. Certificate of student 3. Acknowledgement

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Preface Introduction about BSNL Introduction towards performance appraisal Introduction about potential appraisal & development 8. Rationale of study 9. Methods of performance appraisal • Essay appraisal • Graphic rating scale • Field review • Forced choice rating • MBO • Ranking method • Assesment center • 360degree feedback 10. Benefits of performance appraisal 11. Role of performance appraisal process 12. Key concept of PMS 13. Performance rating process 14. Objective of study 15. Research methodology 16. Finding and analysis 17. Limitation of the study 18. Suggestion and conclusion 19. Challenges of performance appraisal
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CERTIFICATE OF GUIDE This is to certify that the project report entitled “performance appraisal” is a bonafide work of Ms Anuradha (Enrolment No.2010390401) carried out in partial fulfillment for the award of degree of Master of of Business Administration in HRM of pondicherry university under my guidance. This project work is original and not submitted earlier for the award of any degree/diploma or associate ship of any other university /institution.

Date Place

Signature of the guide

Name and official address of the guide

Guide’s academic qualifications Designation and experience

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2010390401 Date Signature of the student 4 .Student Declaration I Ms. Anuradha hereby declare that the project work titled “Performance appraisal ” is the original work done by me and submitted to the Pondicherry University in partial fulfillment of requirements for the award of Master of business administration in HRM a record of original work done by me under the supervision of Dr . no. Rajeev Metha Enroll .

Rajeev Mehta for providing me a golden opportunity to carry out this project.ACKNOWLEDGEMENT Expressing a sense of gratitude to all those highly qualified. Once again my heartily thanks to all the respected persons who provided me their precious support for completion of this project. It gives me immense pleasure to acknowledge Dr. intelligent. Words and lexicons can’t do justice in expressing my sincere regard to him. Rajeev Mehta of this project Probably it’s a very precious moment for my future. hardworking. as he was my project guide who provided me with the initial guidelines and solved my queries during the course Anuradha PREFACE 5 . I would also like to express a deep sense of gratitude to Dr. dedicated and above all helping people who have enabled me to accomplish this mighty task of writing a project report is something much more than a custom. It is a feeling of thankfulness that comes from within me for all those big and small things that these people have done for me.

My research project deals with “Performance Appraisal as carried out at Bharat Sanchar Nigam Ltd. The forth and final section of this report consists of extra 6 . The first section of my report deals with a detailed company profile. In this section. The second section deals with performance appraisal.. Recognition of people as a valuable resource in the organization has led to increases trends in employee maintenance . It includes the company’s history: its activities and operations. This section attempts to give detailed information about the company and the nature of it’s functioning. I have given a brief conceptual explanation to performance appraisal. It contains the definition. job security. process and significance of performance appraisal. suggestions and feedback. I have conducted a research study to evaluate the process of performance appraisal at Bharat Sanchar Nigam Ltd. (BSNL)”. In the third section of my report. In this report. I have studied & evaluated the performance appraisal process as it is carried out in the company. etc. this section also contains my findings. conclusions. organizational structure etc.Managing human resources in today’s dynamic environment is becoming more and more complex as well as important .

information that I related to the main contents of the report. These annexure include some graphs and diagrams relating to the company, graphs relating to the research study and important documents upon which the project is based.

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885 fixed exchanges.071 CDMA Towers. expanding the network. BSNL has installed Quality Telecom Network in the country & now focusing on improving it.It is one of the largest & leading public sector units providing comprehensive range of telecom services in India. FTTH. VoIP.60 million GSM capacity. 72. In fact there is no telecom operator in the country to beat its reach with its wide network giving services in every nook & corner of the country & operates across India except New Delhi & Mumbai. BSNL is the only service provider. 12.644 RKm. of OFC. IN Services. 8. making focused efforts & planned initiatives to bridge the rural-urban digital divide in ICT sector. introducing new telecom services with ICT applications in villages & winning customer's confidence.430 RKm. Today. It took over the business of providing of telecom services and network management from the erstwhile Central Government Departments of Telecom Services (DTS) and Telecom Operations (DTO). 7330 cities/towns & 5. it has about 43.Bharat Sanchar Nigam Ltd. Whether it is inaccessible areas of Siachen glacier or North-Eastern regions of the country. 197 Satellite Stations. GSM mobile. 6.83 million WLL capacity. Carrier service. 50.162 GSM BTSs. Internet. Broadband. BSNL serves its customers with a wide bouquet of telecom services namely Wireline. 68.8 lakhs villages . was incorporated on 15th september 2000 .86. of microwave network connecting 623 districts. 37.74 million line basic telephone capacity. etc. 10 . VSAT. MPLSVPN. CDMA mobile. with effect from 1st October‘ 2000 on going concern basis.

The company has vast experience in planning.09 million broadband customers. BSNL has set up a world class multi-gigabit. turnover of BSNL is around Rs. 29.06 million WLL customers as on 31. sales and marketing. • Create a customer focused organization with excellence in customer care. installation. Services/products across customer segments. network integration & maintenance of switching & transmission networks & also has a world class ISO 9000 certified Telecom Training Institute. VISION Be the leading telecom service provider in India with global presence. At present there are 8. 71. BSNL has 90.2011. • Leverage technology to provide affordable and innovative telecom. BSNL is miles ahead of its rivals.09 million cellular & 5. During the 2010-11. In basic services.700 Crores. 3G Facility has been given to all 2G connections of BSNL. data & video through the same Backbone & Broadband Access Network. • 11 .07.BSNL is numero uno of India in all services in its license area. with 24.58 million wireline phone subscribers i.93% share of the wireline subscriber base. The company offers wide ranging & most transparent tariff schemes designed to suit every customer.e. multi-protocol convergent IP infrastructure that provides convergent services like voice.

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the reality for many organizations are that their people remain under valued. is an essential part of every manager’s responsibility. in the sense of getting things done through people. “People are our most valuable asset” is a cliché. Performance Appraisal is the process of assessing the performance and progress of an employee or a group of employees on a given 13 . Yet.INTRODUCTION TOWARDS PERFORMANCE APPRAISAL SYSTEM Human Resource (or personnel) management. 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. which no member of any senior management team would disagree with. under trained and under utilized.

C. contributions and potentials of employees. It consists of all formal procedures used in the working organizations to evaluate personalities. Meaning and Definition Performance appraisal is a systematic evaluation of employees by superiors or other familiar with their performance. 14 .job and his / their potential for future development.” Performance appraisal is the process of evaluating the performance and qualification of employee in terms of the requirement of the job for which he is employed for the process of administration including placement selection for promotion providing financial reward and other action which require differential treatment among the member of a group as distinguished from action affecting all members equally.Hegel defines .” Basically performance appraisal is a systematic and objective way of judging the relative worth or ability of an employee in performing his job all performances are to be evaluated in the same manner utilizing the same approaches A formal definition of performance appraisal is: It is the systematic evaluation of the individual with respect to his or her performance on the job and his or her potential for development.

and used for seven purposes. and improves understanding of personal goals and concerns. 3. To decide upon a pay raise where (as in the unorganized sector) regular pay scales have not been fixed. To assess the training and development needs of employees. To let the employees know where they stand insofar as their performance is concerned and to assist them with constructive criticism and guidance for the purpose of their development. To effect promotions based on competence and performance. stored. The main purposes of employee assessment are: 1. This can 15 . OBJECTIVES OF PERFORMANCE APPRAISAL Data relating to performance assessment of employees arc recorded. Performance appraisal provides a format for dialogue between the superior and the subordinate. 5. 6. To confirm the services of probationary employees upon their completing the probationary period satisfactorily. 2.A more comprehensive definition is: 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 organization and society all benefit. To improve communication. 4.

organizational maintenance/objectives. performance appraisal serves four objectives(i) (ii) (iii) (iv) developmental uses. training.also have the effect of increasing the trust between the rater and the ratee. administrative uses/decisions. performance appraisal can be used to determine whether HR programmes such a selection. Finally. Broadly. and transfers have been effective or not. and documentation purposes 16 . 7.

Multiple Purposes of Performance Assessment General Applications Developmental Uses Specific Purpose Identification of individual needs Performance feedback Determining transfers and job assignments Identification Salary Promotion Administrative Uses/Decisions Retention or termination Recognition performance Lay-offs Identification of poor performers of individual of individual strengths ad development needs Organizational Objectives HR planning Determining organization training needs Maintenance/ Evaluation of organizational goal achievement Information for goal identification Evaluation of HR systems Reinforcement of organizational development needs Criteria for validation research Documentation for HR decisions 17 Helping to meet legal requirements Documentation .

more emphasis has been 18 .Introduction about potential appraisal and development In consonance with the philosophy the of human resource personnel development that has replaced erstwhile management in many organizations.

managerial These qualities may be broadly divided and qualities. while potential includes the possible knowledge.(1) technical knowledge and skills. 3. These job descriptions should spell out the various functions involved in performing the job. The purposes of a potential review are: 1. To enable the organization to draft a management succession programmed. (3) into four categories . and attitudes the employee may possess for better performance. and (4) conceptual capabilities. To advise employees about the work to be done to enhance their career opportunities. Qualities Required: Besides job descriptions. The following are some of the requirements and steps to be followed when introducing a potential appraisal system: Role Description: A good potential appraisal system would be based on clarity of roles and functions associated with the different roles in an organization. 2.laid on the appraisal of the employees’ potential in addition to their performance. To inform employees of their future prospects. This requires extensive job descriptions to be made available for each job. To update training and recruitment activities. 4. 19 . Performance is a thing of the past. skills. (2) capabilities behavioral capabilities. it is necessary to have a detailed list of qualities required to perform each of these functions.

indicators of these qualities. It helps in understanding the employees work culture.(a) rating by others. Such its efforts. the organisation is in a sound position to establish and operate the potential appraisal system. (d) performance simulation games and exercises. establishment requires clarity in organisational policies and systematization of RATIONALE OF THE STUDY Performance Appraisal is the important aspect in the organization to evaluate the employees performance. appraisal records. involvement. and mechanisms for generating these indicators are clear.Indicators of Qualities: A good potential appraisal system besides listing down the functions and qualities would also have various mechanisms for judging these qualities in a given (c) individual. It 20 . and satisfaction. qualities are . Some of the mechanisms for judging these (b) psychological tests. Organising the System: Once the functions. the qualities required to perform these functions.

in the sense of getting things done through people. is an essential part of every manager’s responsibility.helps the organization in deciding employees promotion. INTRODUCTION TO HUMAN RESOURCE MANAGEMENT Human Resource (or personnel) management. skilled people is competitive and expensive. under trained and under utilized. incentives. product / process / organization knowledge and experience for new staff members. pay increase. which no member of any senior management team would disagree with. transfer. FUNCTIONS OF HUMAN RESOURCE MANAGEMENT Following are the various functions of Human Resource Management that are essential for the effective functioning of the organization: 21 . 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. Also. it takes time to develop ‘cultural awareness’. The market place for talented. the reality for many organizations are that their people remain under valued. Taking on new staff can be disruptive to existing employees. “People are our most valuable asset” is a cliché. Yet.

1. 5. 4. 3. 2. Recruitment Selection Induction Performance Appraisal Training & Development Recruitment 22 .

Selection The selection is the process of ascertaining whether or not candidates possess the requisite qualifications. training and experience required.The process of recruitment begins after manpower requirements are determined in terms of quality through job analysis and quantity through forecasting and planning. Induction 23 .

It is scientific and objective study. 4. 3. PROCESS OF PERFORMANCE APPRAISAL 24 .Induction is the technique by which a new employee is rehabilitated into the changed surroundings and introduced to the practices. CHARACTERISTICS OF PERFORMANCE APPRAISAL 1. It is an ongoing and continuous process wherein the evaluations are arranged periodically according to a definite plan. Performance Appraisal is a process. Formal procedures are used in the study. 2. The main purpose of Performance Appraisal is to secure information necessary for making objective and correct decision an employee. policies and purposes of the organization. 5. It is the systematic examination of the strengths and weakness of an employee in terms of his job.

6. The more logical task is to 25 . 5. 2. 4.The process of performance appraisal: 1. 2. even considering the available battery of appraisal techniques. Establishing performance standards Communicating the Standards Measuring Performance Comparing the actual with the standards Discussing the appraisal Taking Corrective Action LIMITATIONS 1. 3. Errors in Rating Lack of reliability Negative approach Multiple objectives Lack of knowledge METHODS OF PERFORMANCE APPRAISAL The foregoing list of major program pitfalls represents a formidable challenge. 4. 5. But attempting to avoid these pitfalls by doing away with appraisals themselves is like trying to solve the problems of life by committing suicide. 3.

potential. or unsatisfactory?) and on a variety of other factors that vary with the job but usually include personal traits like reliability and cooperation. The best-known techniques will be treated most briefly. . In most selection situations. but it is more consistent and reliable. Before relating the specific techniques to the goals of performance appraisal stated at the outset of the article. or associates carry significant weight. teachers. Typically. sales. a graphic scale assesses a person on the quality and quantity of his work (is he outstanding. weaknesses. essay appraisals from former employers. I shall briefly review each. GRAPHIC RATING SCALE This technique may not yield the depth of an essay appraisal. this technique asks the rater to write a paragraph or more covering an individual's strengths. particularly those involving professional.identify those appraisal practices that are (a) most likely to achieve a particular objective and (b) least vulnerable to the obstacles already discussed. or managerial positions. average. and so on. It may also include specific performance items like oral and written communication. above average. 26 . taking them more or less in an order of increasing complexity. ESSAY APPRAISAL In its simplest form.

but it does not involve the intervention of a third . (b) help the group arrive at a consensus. this technique was developed to reduce bias and party. ratings. MANAGEMENT BY OBJECTIVES To avoid. . Within the past five or six years. MBO has become something of a fad and is so familiar to most managers that I will not dwell on it here.FIELD REVIEW The field review is one of several techniques for doing this. or appraisal forms are not particularly useful. it is necessary to recognize that comparisons involve an overall subjective judgment to which a host of additional facts and 27 establish objective standards of comparison between individuals. particularly when it is necessary to compare people who work for different supervisors. individual statements.or help set . RANKING METHODS For comparative purposes. Instead. or to deal with. and (c) determine that each rater conceives the standards similarly. employees in some organizations are being asked to set . the feeling that they are being judged by unfairly high standards. FORCED-CHOICE RATING Like the field review. A member of the personnel or central administrative staff meets with small groups of raters from each supervisory unit and goes over each employee's rating with them to (a) identify areas of inter-rater disagreement.their own performance goals.

impressions must somehow be added. The best approach appears to be a ranking technique involving pooled judgment. Both ranking techniques. The two most effective methods are alternation ranking and paired comparison ranking.e. Since it is usually easier to distinguish between the worst and the best employees than to rank them. There is no single form or way to do this. the employee who is highest on the characteristic being measured and the one who is the lowest are indicated. Then on a form as shown below. particularly when combined with multiple rankings (i. when two or more people are asked to make independent rankings of the same work group and their lists are averaged). “Paired-comparison ranking”: This technique is probably just as accurate as alternation ranking and might be more so. an alternation ranking method is most popular.. Then chose the next highest and the next lowest. are among the best 28 . Here subordinates to be rated are listed and the names of those not well enough to rank are crossed. alternating between highest and lowest until all the employees to be rated have been ranked. 1. “Alternation ranking”: Ranking of employees from best to worst on a trait or traits is another method for evaluating employees. But with large numbers of employees it becomes extremely time consuming and cumbersome. 2.

ASSESSMENT CENTERS So far. whereby ratings are not given just by the next manager up in the organizational hierarchy. Like the critical incident method. questionnaires on an individual. The feedback is generally used for training and development. Most 360 Degree Feedback system contains several common features. we have been talking about assessing past performance. but also by peers and subordinates. rather than for pay increases. subordinates and customers. it focuses on actual behavior and actual results. for instance – complete survey. which can be discussed objectively and constructively.available for generating valid order-of-merit rankings for salary administration purposes. with little or no need for a supervisor to "play God. 360 degree feedback is also known as the multirater feedback." 29 . MBO. along with the element of self appraisal. How can this kind of prediction be made most validly and most fairly? 360 DEGREE FEEDBACK Many firms have expanded the idea of upward feedback into what the call 360-degree feedback. of course. supervisors. Another technique that is useful for coaching purposes is. Appropriate parties – peers. the assessment from the various quarters are compared with one another and the results communicated to the manager concerned. What about the assessment of future performance or potential? In any placement decision and even more so in promotion decisions. Once gathered in. Appropriates customer ratings are also included. some prediction of future performance is necessary.

Disadvantages This approach can lead to unrealistic expectations about what can and cannot be reasonably accomplished. Supervisors and subordinates must have very good "reality checking" skills to use MBO appraisal methods. They will need these skills during the initial stage of objective setting. MBO advocates claim that the performance of employees cannot be broken up into so many constituent parts. and not on their potential for success. The MBO method recognizes the fact that it is difficult to neatly dissect all the complex and varied elements that go to make up employee performance. the MBO method concentrates on actual outcomes. It is also possible that fluid objectives may be distorted to disguise or justify failures in performance. 30 . but to put all the parts together and the performance may be directly observed and measured. or on someone's subjective opinion of their abilities. Employees are judged according to real outcomes. and for the purposes of selfauditing and self-monitoring. then he or she has demonstrated an acceptable level of job performance. If the employee meets or exceeds the set objectives. Variable objectives may cause employee confusion.Advantages Instead of assuming traits. The guiding principle of the MBO approach is that direct results can be observed easily.

Plays an important role in Personal career and succession planning. values. defining. etc among its employees. priorities. Plays major role in organizational training needs assessment and analysis. Improves understanding and relationship between the employee and the reporting manager and also helps in resolving confusions and misunderstandings.Benefits of Performance Appraisal • • • • • • • • • • • Measures an employee’s performance. Helps in identification of personal strengths and weaknesses. strategies. Clarifies team roles and facilitates team building. redefining priorities and objectives. Helps in clarifying. Facilitates assessment and agreement of training needs. Rating Errors in Performance Appraisals Performance appraisals are subject to a wide variety of inaccuracies and biases referred to as 'rating errors'. Motivates the employee through achievement and feedback. Helps in counseling and feedback. Some of the most common rating errors are: - 31 . These errors can seriously affect assessment results. Plays an important tool for communicating the organization’s philosophies. aims.

Leniency or severity: . an attractive or popular personality might be given a high overall rating. indirectly increase his/her hold over him. Halo error: . Central tendency: .This occurs when employees are incorrectly rated near the average or middle of the scale. which the raters have been assessing the rates. The attitude of the rater is to play safe. 32 .Leniency or severity on the part of the rater makes the assessment subjective. This safe playing attitude stems from certain doubts and anxieties. The halo error occurs when an employee who works late constantly might be rated high on productivity and quality of output as well ax on motivation. Rating employees separately on each of the performance measures and encouraging raters to guard against the halo effect are the two ways to reduce the halo effect. Ratings are lenient for the following reasons: a) The rater may feel that anyone under his or her jurisdiction who is rated unfavorably will reflect poorly on his or her own worthiness.A halo error takes place when one aspect of an individual's performance influences the evaluation of the entire performance of the individual. c) He/She promotions may for rate the leniently in order and to win subordinates therefore. b) He/She may feel that a derogatory rating will be revealed to the rate to detriment the relations between the rater and the ratee. Subjective assessment defeats the very purpose of performance appraisal. Similarly.

One way of guarding against such an error is to ask the rater to consider the composite performance of the rate and not to be influenced by one incident or an achievement.The rater's rating is heavily influenced either by behavior exhibited by the ratee during his early stage of the review period (primacy) or by the outcomes. the timing of the incident may inflate his or her standing. stereotyping. Performance dimension order: . Primacy and Regency effects: . result in similar rating for current period 33 .Rater effect: -This includes favoritism. and hostility. sex. or behavior exhibited by the ratee near the end of the review period (regency). age. The rater rates the first dimensions accurately and then rates the second dimension to the first because of the proximity. good or bad. race and friendship biases are examples of this type of error. Past ratings. even though the overall performance of the sales person may not have been encouraging. For example. Spillover effect: .This refers lo allowing past performance appraisal rating lo unjustifiably influence current ratings.Two or more dimensions on a performance instrument follow each other and both describe or rotate to a similar quality. Extensively high or low score are given only to certain individuals or groups based on the rater's attitude towards them and not on actual outcomes or behaviors. If the dimensions had been arranged in a significantly different order. the ratings might have been different. if a salesperson captures an important contract/sale just before the completion of the appraisal.

independently assess employees for the said behavioral traits. good or bad. a reviewer may not be a HOD) 34 . in consultation with the reviewer b) Reviewer (Reporting Manager’s Reporting Manager) Ø Discuss with the reporting managers on the behavioral traits of all the employees for whom he / she is the reviewer Ø Where required. ROLES IN THE PERFORMANCE APPRAISAL PROCESS a) Reporting Manager Ø Provide feedback to the reviewer / HOD on the employees’ behavioral traits indicated in the PMS Policy Manual Ø Ensures that employee is aware of the normalization / performance appraisal process Ø Address employee concerns / queries on performance rating. such assessments might require collecting data directly from other relevant employees c) HOD –Head of the Department (In some cases.although the demonstrated behavior docs not deserve the rating.

specifically on the upward / downward shift in ratings. to ensure an unbiased relative ranking of employees on overall performance. Ø HOD also plays the role of a normalization committee member Ø Owns the performance rating of every employee in the department d) HR Head Ø Ø Secretary to the normalization committee Assists employees e) Normalization Committee Ø Decides on the final bell curve for each function in the respective Business Unit / Circle Ø Reviews the performance ratings proposed by the HOD’s. and thus finalize the performance rating of each employee HOD’s / Reporting Managers in communicating the performance rating of all the 35 .Ø Presents the proposed Performance Rating for every employee of his / her function to the Normalization committee.

e. How is the KRA score calculated for an employee on the basis of the targets sets and targets achieved? Ø BEHAVIORAL TRAITS: Some of the qualitative aspects of an employees’ performance combined with the general behavioral traits displayed by the employee during a year constitutes his behavior traits. They are: Ø KRA’S (KEY RESULT AREAS): The performance of an employee is largely dependent on the KRA score achieved by the employee during that particular year. An employee is assigned the rating on the basis of the intensity of the behavior displayed 36 .KEY CONCEPTS IN PMS-Performance Management System In order to understand the Performance Management System at BHARTI. it is necessary to answer a few basic questions i. o What are the guidelines for setting the KRA’s for an employee? o How does an employee write down his KRA’s for a particular financial year? o o KRA’s: The Four Perspectives. Thus. some concepts need to be explained which play a very important role in using the PMS successfully.

e. which is considered for awarding any of these ratings to the employee. SC. It also explains the criteria. These guidelines also help in deciding upon the promotion cases in a year. C and PC. 37 . They play a very important role in the deciding the final performance rating for an employee as is even capable of shifting the rating one level upwards/downwards. It is very important that the HR department pays due attention to these guidelines while preparing the bell curves for various functions and the consolidated bell curve for all the functions.by him. Ø THE PERFORMANCE RATING PROCESS: The rating process tries to explain the four different types of rating that an employee can achieve i. EC. This framework also tries to assess the performance of an employee objectively. Ø PROMOTION GUIDELINES: The guidelines provide AND the RATING and framework DISRTRIBUTION normal within distribution which the promotion performance appraisal process has to work. Ø BHARTI 2010 LEADERSHIP COMPETENCY FRAMEWORK: This competency framework is a simple and structured way to describe the elements of behaviors required to perform a role effectively.

solutions · · · · Sees and exploits opportunities Delivers ahead of time Sees the wider pictureimpacts across business Focuses on what’s good for the business and anticipates implements Versatile in his/ her area of operation • Develops creative solutions and require little / minimal supervision • • Sets examples for others Take ownership of own development • • Coaches others Demonstrates business initiative • • Is self motivated Supportive team player 38 .PERFORMANCE RATING PROCESS EXCEPTIONAL (EC) CONTRIBUTOR SIGNIFICANT (SC) CONTRIBUTOR · and · Performs consistently above · · Performs Achieves final above score substantially expectations in all areas between 100-114% • expectations in all areas Achieves a final score greater than or equal to 115% · · · Consistently delivers on stretch targets Is proactive Spots problems.

· · Seen as role model by others Recognized exceptional by functions as well as other to • Leads own team very effectively • Demonstrate functional initiative · · · Motivates solve problems others · Develops others Provides open and honest feedback · Able to establish and lead cross-functional teams 39 .

Quality of Work TOTAL ------ TOTAL SCORE 40 . 2.RATING SCALE Instructions: For the following performances factors. 3. please indicate on the rating Scale your evaluation of the employee named below: Employee’s Name: Rater’s Name Excellent 5 Good 4 Department Date. 6. Acceptable 3 Fair 2 Poor 1 1. Dependability Initiative ---------- ---------------------------------------------------------------+ -------------------------------------------------+ + ----------------------------------------+ ----------------------------------------- Overall Output -----Attendance Attitude Co-Operation ---------------- 20. 4. 5.

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Employee attitude towards the present appraisal system. To provide suggestions & recommendations from the study conducted. 43 . Attain global standards 4. Identification of the technique of performance appraisal followed in BSNL. we framed the following objectives 1. Review of the current appraisal system in order to 1.OBJECTIVES OF THE STUDY To carry out the study of BSNL. Enhance productivity 2. 3. 2.

44 . and development of specific hypothesis is to be tested later by more conclusive research designs.RESEARCH METHODOLOGY RESEARCH DESIGN: Research Design refers to "framework or plan for a study that guides the collection and analysis of data". 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. These studies help in a proper definition of the problem. (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. A typical research design of a company basically tries to resolve the following issues: a) Determining Data Collection Design b) Determining Data Methods c) Determining Data Sources d) Determining Primary Data Collection Methods e) Developing Questionnaires f) Determining Sampling Plan (1) Explorative Research Design: Explorative studies are undertaken with a view to know more about the problem.

it was mix of both the tools of Research Design that is. Bar graphs Pie Diagrams Doughnuts FINDINGS AND ANALYSIS 45 . 2.These studies can be either: a) Descriptive or b) Experimental Thus. Explorative as well as Conclusive. 3. Panchkula DATA COLLECTION: Data Sources: (i) Secondary Data through Internet (ii) Primary Data through Questionnaire (iii) Contact Method (iv) Personal Interaction DATA PRESENTATION AND ANALYSIS: 1. SAMPLING PLAN: Sample Size = 40 Employees Sample Area = BSNL Exchange.

Employees Opinion as to the Purpose of Performance Appraisal Performance standards / yardsticks Options Yes No Response 84 16 Awareness of technique of Performance Appraisal being followed at BSNL among Employees Options Yes No Response 72 28 Number of Employees being appraised during their service period Options Yes No Response 68 32 Employees’ opinion as to the present appraisal system 46 .

Options Responses (in %) Fully Satisfied Satisfied Can’t Say Dissatisfied 2 24 44 30 Employee perception as to the frequency of appraisal Options Once During The Service Period Continuous Never Can’t Say Response (in %) 2 92 0 6 If continuous appraisal – what should be the gap between two appraisal period 47 .

Options Quarterly Half Yearly Yearly Response (in %) 20 44 36 How Performance Appraisal affects the productivity of the employees Motivated Indifferent Demotivated + Feedback 38 Feedback 12 12 - 10 28 Neutral 24 21 5 Who should do the appraisal? Options Response ( in % ) 48 .

In the survey conducted it was observed that nearly 74 % of the 49 .Superior Peer Subordinate Self Appraisal Consultant 24 0 0 8 4 All of the above 48 Superior + Peer 16 Does appraisal help in polishing skills and performance area? Options Response ( in %) Yes No Somewhat 74 10 16 If the process of appraisal does not lead to the improvement of the skills and proficiency of the employees. the very purpose of appraisal becomes illogical.

Does personal bias creeps-in while appraising an employee Options Yes No Response ( in % ) 82 18 In the process of appraising. It is the extent to which the appraiser manages it so that it does not become very partial and bias.respondents agree that Performance Appraisal does leads to polishing the skills of the employees. If given a chance. be it an objective way of appraising. it is inevitable to say that personal likings do not come in the process of appraisal. both the parties are human being. Nearly 10 % of the respondents view that it does not serve this purpose and around 16 % were not able to respond as to whether it serve any such purposes or not. would employees like to review the current appraisal technique? Options Response ( in % ) 50 . the one who is being apprised and the other who is appraising. there bound to be subjectivity involved. that is. Thus. Hence. when asked from among the sample size of 50 respondents. Thus. as huge as 82 % respondended that personal bias do creep in while appraising an individual.

Yes No Can’t Say 72 4 24 Appropriate method of conducting the performance appraisal Options Response ( in %) Ranking Method 12 Paired Comparison 0 Critical Incidents 20 MBO Assessment Centre 360 degree 58 4 6 Does performance appraisal leads to identification of hidden potential Options Response ( in 51 .

%) Yes No 96 4 LIMITATIONS OF THE STUDY 52 .

resulting in biased results.A few limitations and constraints came in way of conducting the present study. no effort was spared to make the study most accurate and useful. SUGGESTIONS AND CONCLUSION 53 . biases on the part of respondents might have resulted in some subjectivity. the “sample Size” selected for the same may not be the true representative of the Company. under which the researcher had to work are as follows: Ø Although all attempts were made to make this an objective study. Ø This being the maiden experience of the researcher of conducting study such as this. using deeper statistical techniques in analyzing and interpreting data may not be ruled out. Ø Though. the possibility of better results.

This is the thing that has been mentioned time and again in the report. it has to be on the continuous basis. it should not start at bottom. in the absence of continuity. the appraisal form should not lead to duplication of any information. This means that the top management has to take a welcoming and positive approach towards the change that is intended to be brought. The very concept of performance appraisal should be marketed throughout the organization. which includes the top management as well as those below them. Before actually deciding drafting what should be the kind of appraisal the following things should be taken care of: 1. 3. be it how important to the organization. To market such a concept. 2. This would help in percolating down the concept to the advantage of all. Unless this is done.After having analyzed the data. It should be noted that the appraisal form for each job position should be different as each job has different 54 . Further. instead it should be started by the initiative of the top management. it was observed that practically there was no appraisal in the organization. Instead. as. at the time of confirmation also. it becomes a redundant exercise. 4. To be an effective tool. detailed appraisal of the employee’s work must be done – which must incorporates both the work related as well as the other personal attributes that are important for work performance. people would not accept it.

so that the exercise becomes a continuous phenomenon. it cannot be a drastic one. A neutral panel of people should do the appraisal and to avoid subjectivity to a marked extent. There should not be a common appraisal form for organization. But. a) Fully Satisfied c) Can’t Say b) Satisfied d) Dissatisfied every job position in the 55 . 8. The time period for conducting the appraisal should be revised. objective methods should be employed having quantifiable data.knowledge and skill requirements. The job and role expected from the employees should be decided well in advance and that too with the consensus with them. since a change in the system is required. It ought to be gradual and a change in the mindset of both the employees and the head is required. 5. 7. Ideally in the present day scenario. taking the views of all the concerned parties who have some bearing on the employee. appraisal should be done. Transparency into the system should be ensured through the discussion about the employee’s performance with the employee concerned and trying to find out the grey areas so that training can be implemented to improve on that. 6.

6. Does Performance Appraisal helps in improving the productivity of the employees? Motivated + Feedback . Who in your opinion should appraise the employee? 56 . What in your opinion should be the time period of conducting continuous a) Appraisal? b) Half Yearly c) Yearly Quarterly Any specific reason……………………………… 8.Feedback Neutral Indifferent Demotivated 9. Should the appraisal process be: a) Once during the service period c) Never b) Continuous d) Can’t Say 7.

a) Superior b) Peer d) Self Appraisal f) All of the above c) Subordinates e) Consultant 10. b) No If given a chance or an opportunity would you like that the current appraisal procedure should be reviewed? a) Yes b) No c) Can’t Say 13. c) Reviewing employees on the basis of identified specific examples of good or poor performance. What according to you should be the appropriate method for conducting performance appraisal? a) Rating the employee on number of traits along with the range of performance for each by the supervisor. each subordinate is paired with and compared to every other Subordinate. d) Setting specific measurable goals with each employee and periodically reviewing the progress made. b) For every trait. b) No c) Somewhat Do you think personal bias creeps in while appraising an individual? a) Yes 12.Does the appraisal system helps in polishing the skills or performance area? a) Yes 11. 57 .

................ for future performance............................................... . Thank you................................................... etc...... Suggestions and views…………………………………................................... Does Performance Appraisal leads to identification of hidden potential of the employees? a) Yes b) No 15......................................... 14..... presentations................... ....................................................e) Reviewing performance through case studies................................................... Date --/--/-- 58 ...... .. f) Receiving feedback from people whose views are considered helpful and relevant including the appraise himself.... ........................ role playing..................................................................................

59 .

A suitable device needs to be developed to assess the performance of empowered teams because more and more firms use such teams to enhance productivity. Historically. challenges confronting the system are mounting. if one recalls. it is the supervisor who assesses the performance of his or her subordinates. Popularly called empowered teams. individual and team performance. these self-managed teams create special challenges for performance appraisal-empowered teams perform without supervisors. need to be measured. Another challenge is that both.CHALLENGES OF PERFORMANCE APPRAISAL With the increased significance of performance appraisal. Challenges of Appraisal: • Create a culture of excellence that inspires every employee to improve and lend himself or herself to be assessed • • • • careers Align organizational objectives to individual aspirations Clear growth paths for talented individuals Provide new challenges to rejuvenate careers that have reached the plateau stage Forge a partnership with people for managing their 60 . Figure below contains a typical model of team appraisal. One serious challenge facing the performance appraisal system relates to assessment of self-managed teams.

which indicate pockets of individual excellence with the team Evaluate performance of the team against predetermined targets Communicate the results to ensure transparency Measure the performance of the team (actual versus targets) every month Identify individuals who have excelled. Incorporate stretch elements for each target. Fix the minimum acceptable target Determine intangible parameters (like initiative).• • information. Discount subjective factors by including assessors from outside the team to identify outstanding individuals. Empower employees to make decisions without the fear of failing Embed teamwork in all operational processes De-bureaucratize the organization structure for ease of flow of • Identify KRAs critical to business during the year Set tangible targets for each KRA. 61 .

Example : Bsnl performance appraisal 62 .

4. 3. GOOD GOOD . 2. BSNL HUMAN RESOURCE DEVELOPMENT-PERFORMANCE APPRAISAL SYSTEM PERFORMANCE ANALYSIS AND REVIEW NAME DATE SIGNATURE EMPLOYEE IMMEDIATE SUPERVISOR NEXT SUPERIOR 2. A2] SELF REVIEW (by employee) ADEQUATE V.CONFIDENTIAL PA FORM: EXECUTIVES & SUPERVISORS NAME EMS. NO CADRE GROUP DEPT. AGREED OBJECTIVES RESULTS AND TARGETS ACHIEVED 1. PS. 5. A]PERFORMANCE REVIEW AGAINST B1] BY IMMEDIATE SUPERIOR OBJECTIVES OUTSTANDI NG A1] BY EMPLOYEE INADEQUATE 63 1. PERSONNEL/ HRD DEPT.

SIGNIFICANT CONTRIBUTORS (JOBS OR PROFESSION RELATED –NOT COVERED ABOVE) • IMPORTANT FACTORS FACILITATING PERFORMANCE • IMPORTANT FACTORS HINDERING PERFORMANCE B2] PERFORMANCE AGAINST OBJECTIVES(BY IMMEDIATE SUPERIOR) OUTSTANDING INADEQUATE C1] Appraisal of immediate superior) C2] 1. without waiting to be told. Ability to interact effectively with people at all levels to gain their confidence and respect and work 64 V. INITIATIVE 3. GOOD GOOD ADEQUATE ADEQUATE INADEQUATE CRITICAL ATTRIBUTES 2. INNOVATIVENESS Ability to think new and better ways of doing things that results in introduction of new ideas or improvements of the systems and operations. Ability to determine and initiate actions that result in improve handling of jobs. GOOD OUTSTANDING Critical Attributes(by GOOD V. INTERPERSONAL & TEAM RELATIONSHIP .

in a collaborative and participative manner. D3] SPECIFIC DEVELOPMENT PLANS 2. 4. Code 2. C2] AREAS OF STRENGTH AND IMPROVEMENTS (by immediate superior) C3] Potential Areas Of Growth (By Immediate Superior) D] Recommendations For Training And Immediate Superior) D1] IN-COMANT TRAINING PROGRAMMES Description Code 1. Development( By Description 65 . RESOURCEFULNESS Ability to muster resources to achieve desired results and device ways and means of solving problems in difficult situations. Ability to convey COMMUNICATION thoughts and SKILLS feelings clearly both through oral as well as written expressions for better understanding. D2] OTHER TRAINING PROGRAMMES 1. 5.

Proposed action (tick as applicable) • • • • • E] Job rotaion Job enlargement Special assignment Deputatiomn of other dept Others(please specify) Details of Actions Required COMMENTS BY NEXT SUPERIOR(S) E1] ON SPECIFIC DEVELOPMENT PLANS STATED ABOVE IN D3 E2] OVERALL OBSERVATIONS: F] FOR USE BY PERSONNEL/ HRD CO -ORDINATOR Signature of employee 66 .

67 .

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