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


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


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

PAGE 3 4 5 6 9 13 19 21 26 27 27 27 28 28 28 29 30 32 35 37 39 43 44 46 53 54 60

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
4. 5. 6. 7.

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

Guides academic qualifications Designation and experience

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 . Rajeev Metha

Enroll . no. 2010390401 Date

Signature of the student

ACKNOWLEDGEMENT Expressing a sense of gratitude to all those highly qualified, intelligent, hardworking, 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. It gives me immense pleasure to acknowledge Dr. Rajeev Mehta for providing me a golden opportunity to carry out this project. Words and lexicons cant do justice in expressing my sincere regard to him. I would also like to express a deep sense of gratitude to Dr. Rajeev Mehta of this project Probably its a very precious moment for my future. Once again my heartily thanks to all the respected persons who provided me their precious support for completion of this project. as he was my project guide who provided me with the initial guidelines and solved my queries during the course



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

The forth and final section of this report consists of extra

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.

Bharat Sanchar Nigam Ltd. was incorporated on 15th september 2000 . 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), with effect from 1st October 2000 on going concern basis.It is one of the largest & leading public sector units providing comprehensive range of telecom services in India. BSNL has installed Quality Telecom Network in the country & now focusing on improving it, expanding the network, introducing new telecom services with ICT applications in villages & winning customer's confidence. Today, it has about 43.74 million line basic telephone capacity, 8.83 million WLL capacity, 72.60 million GSM capacity, 37,885 fixed exchanges, 68,162 GSM BTSs, 12,071 CDMA Towers, 197 Satellite Stations, 6,86,644 RKm. of OFC, 50,430 RKm. of microwave network connecting 623 districts, 7330 cities/towns & 5.8 lakhs villages . BSNL is the only service provider, making focused efforts & planned initiatives to bridge the rural-urban digital divide in ICT sector. 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. Whether it is inaccessible areas of Siachen glacier or North-Eastern regions of the country, BSNL serves its customers with a wide bouquet of telecom services namely Wireline, CDMA mobile, GSM mobile, Internet, Broadband, Carrier service, MPLSVPN, VSAT, VoIP, IN Services, FTTH, etc.


BSNL is numero uno of India in all services in its license area. The company offers wide ranging & most transparent tariff schemes designed to suit every customer. BSNL has 90.09 million cellular & 5.06 million WLL customers as on 31.07.2011. 3G Facility has been given to all 2G connections of BSNL. In basic services, BSNL is miles ahead of its rivals, with 24.58 million wireline phone subscribers i.e. 71.93% share of the wireline subscriber base. BSNL has set up a world class multi-gigabit, multi-protocol convergent IP infrastructure that provides convergent services like voice, data & video through the same Backbone & Broadband Access Network. At present there are 8.09 million broadband customers. The company has vast experience in planning, installation, network integration & maintenance of switching & transmission networks & also has a world class ISO 9000 certified Telecom Training Institute. During the 2010-11, turnover of BSNL is around Rs. 29,700 Crores. VISION Be the leading telecom service provider in India with global presence. Create a customer focused organization with excellence in customer care, sales and marketing. Leverage technology to provide affordable and innovative telecom. Services/products across customer segments.




Human Resource (or personnel) management, in the sense of getting things done through people, is an essential part of every managers 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 clich, which no member of any senior management team would disagree with. Yet, the reality for many organizations are that their people remain under valued, under trained and under utilized.

Performance Appraisal is 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 the working organizations to evaluate personalities, contributions and potentials of employees. Meaning and Definition Performance appraisal is a systematic evaluation of employees by superiors or other familiar with their performance. C.Hegel defines , 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. 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.


A more comprehensive definition is: Performance' appraisal is a formal structured system of measuring and evaluating an employees 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.

OBJECTIVES OF PERFORMANCE APPRAISAL Data relating to performance assessment of employees arc recorded, stored, and used for seven purposes. The main purposes of employee assessment are: 1. To effect promotions based on competence and performance. 2. To confirm the services of probationary employees upon their completing the probationary period satisfactorily. 3. To assess the training and development needs of employees. 4. To decide upon a pay raise where (as in the unorganized sector) regular pay scales have not been fixed. 5. 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. 6. To improve communication. Performance appraisal provides a format for dialogue between the superior and the subordinate, and improves understanding of personal goals and concerns. This can


also have the effect of increasing the trust between the rater and the ratee. 7. Finally, performance appraisal can be used to determine whether HR programmes such a selection, training, and transfers have been effective or not.

Broadly, performance appraisal serves four objectives(i) (ii) (iii) (iv) developmental uses, administrative uses/decisions, organizational maintenance/objectives, and documentation purposes


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


Introduction about potential appraisal and development In consonance with the philosophy the of human resource personnel






management in

many organizations, more emphasis has been


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








system besides listing down the functions and qualities would also have various mechanisms for judging these qualities in a given (c) individual. Some of the mechanisms for judging these (b) psychological tests, (d) performance simulation games and exercises, qualities are - (a) rating by others, appraisal records. Organising the System: Once the functions, the qualities required to perform these functions, indicators of these qualities, and mechanisms for generating these indicators are clear, the organisation is in a sound position to establish and operate the potential appraisal system. Such its efforts. establishment requires clarity in organisational policies and systematization of


Performance Appraisal is the important aspect in the organization to evaluate the employees performance. It helps in understanding the employees work culture, involvement, and satisfaction. It


helps the organization in deciding employees promotion, transfer, incentives, pay increase.

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 managers 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 clich, which no member of any senior management team would disagree with. Yet, the reality for many organizations are that their people remain under valued, under trained and under utilized. 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:

1. 2. 3. 4. 5.

Recruitment Selection Induction Performance Appraisal Training & Development










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 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. 2.

Performance Appraisal is a process. It is the systematic examination of the strengths and weakness of an employee in terms of his job.


It is scientific and objective study. Formal procedures are used in the study.


It is an ongoing and continuous process wherein the evaluations are arranged periodically according to a definite plan.


The main purpose of Performance Appraisal is to secure information necessary for making objective and correct decision an employee.



The process of performance appraisal: 1. 2. 3. 4. 5. 6. Establishing performance standards Communicating the Standards Measuring Performance Comparing the actual with the standards Discussing the appraisal Taking Corrective Action

LIMITATIONS 1. 2. 3. 4. 5. Errors in Rating Lack of reliability Negative approach Multiple objectives Lack of knowledge







program pitfalls

represents a

formidable challenge, even considering the available battery of appraisal techniques. But attempting to avoid these pitfalls by doing away with appraisals themselves is like trying to solve the problems of life by committing suicide. The more logical task is to


identify those appraisal practices that are (a) most likely to achieve a particular objective and (b) least vulnerable to the obstacles already discussed. Before relating the specific techniques to the goals of performance appraisal stated at the outset of the article, I shall briefly review each, taking them more or less in an order of increasing complexity. The best-known techniques will be treated most briefly. ESSAY

In its simplest form, this technique asks the rater to write a paragraph or more covering an individual's strengths, weaknesses, potential, and so on. In most selection situations, particularly those involving professional, sales, or managerial positions, essay appraisals from former employers, teachers, or associates carry significant weight. . GRAPHIC RATING SCALE This technique may not yield the depth of an essay appraisal, but it is more consistent and reliable. Typically, a graphic scale assesses a person on the quality and quantity of his work (is he outstanding, above average, average, or unsatisfactory?) and on a variety of other factors that vary with the job but usually include personal traits like reliability and cooperation. It may also include specific performance items like oral and written communication.


FIELD REVIEW The field review is one of several techniques for doing this. 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, (b) help the group arrive at a consensus, and (c) determine that each rater conceives the standards similarly. . FORCED-CHOICE RATING Like the field review, this technique was developed to reduce bias and party. MANAGEMENT BY OBJECTIVES To avoid, or to deal with, the feeling that they are being judged by unfairly high standards, employees in some organizations are being asked to set - or help set - their own performance goals. 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. RANKING METHODS For comparative purposes, particularly when it is necessary to compare people who work for different supervisors, individual statements, ratings, or appraisal forms are not particularly useful. Instead, it is necessary to recognize that comparisons involve an overall subjective judgment to which a host of additional facts and







individuals, but it does not involve the intervention of a third

impressions must somehow be added. There is no single form or way to do this. The best approach appears to be a ranking technique involving pooled judgment. The two most effective methods are alternation ranking and paired comparison ranking.


Alternation ranking:

Ranking of employees from best to worst on a trait or traits is another method for evaluating employees. Since it is usually easier to distinguish between the worst and the best employees than to rank them, an alternation ranking method is most popular. Here subordinates to be rated are listed and the names of those not well enough to rank are crossed. Then on a form as shown below, the employee who is highest on the characteristic being measured and the one who is the lowest are indicated. Then chose the next highest and the next lowest, alternating between highest and lowest until all the employees to be rated have been ranked. 2. Paired-comparison ranking:

This technique is probably just as accurate as alternation ranking and might be more so. But with large numbers of employees it becomes extremely time consuming and cumbersome.

Both ranking techniques, particularly when combined with multiple rankings (i.e., when two or more people are asked to make independent rankings of the same work group and their lists are averaged), are among the best










administration purposes. ASSESSMENT CENTERS

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

Advantages Instead of assuming traits, the MBO method concentrates on actual outcomes. If the employee meets or exceeds the set objectives, then he or she has demonstrated an acceptable level of job performance. Employees are judged according to real outcomes, and not on their potential for success, or on someone's subjective opinion of their abilities. The guiding principle of the MBO approach is that direct results can be observed easily. 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. MBO advocates claim that the performance of employees cannot be broken up into so many constituent parts, but to put all the parts together and the performance may be directly observed and measured.

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, and for the purposes of selfauditing and self-monitoring. Variable objectives may cause employee confusion. It is also possible that fluid objectives may be distorted to disguise or justify failures in performance.


Benefits of Performance Appraisal

Measures an employees performance. Helps in clarifying, defining, redefining priorities and objectives. Motivates the employee through achievement and feedback. Facilitates assessment and agreement of training needs. Helps in identification of personal strengths and weaknesses. Plays an important role in Personal career and succession planning. Clarifies team roles and facilitates team building. 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. Plays an important tool for communicating the organizations philosophies, values, aims, strategies, priorities, etc among its employees. Helps in counseling and feedback.

Rating Errors in Performance Appraisals Performance appraisals are subject to a wide variety of

inaccuracies and biases referred to as 'rating errors'. These errors can seriously affect assessment results. Some of the most common rating errors are: -


Leniency or severity: - Leniency or severity on the part of the rater makes the assessment subjective. Subjective assessment defeats the very purpose of performance appraisal. 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. 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. c) He/She promotions may for rate the leniently in order and to win



indirectly increase his/her hold over him. Central tendency: - This occurs when employees are incorrectly rated near the average or middle of the scale. The attitude of the rater is to play safe. This safe playing attitude stems from certain doubts and anxieties, which the raters have been assessing the rates. Halo error: - A halo error takes place when one aspect of an individual's performance influences the evaluation of the entire performance of the individual. 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. Similarly, an attractive or popular personality might be given a high overall rating. 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.








hostility. 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; sex, age, race and friendship biases are examples of this type of error. Primacy and Regency effects: - 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, or behavior exhibited by the ratee near the end of the review period (regency). For example, if a salesperson captures an important contract/sale just before the completion of the appraisal, the timing of the incident may inflate his or her standing, even though the overall performance of the sales person may not have been encouraging. 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. Performance dimension order: - Two or more dimensions on a performance instrument follow each other and both describe or rotate to a similar quality. The rater rates the first dimensions accurately and then rates the second dimension to the first because of the proximity. If the dimensions had been arranged in a significantly different order, the ratings might have been different. Spillover effect: - This refers lo allowing past performance appraisal rating lo unjustifiably influence current ratings. Past ratings, good or bad, result in similar rating for current period


although the demonstrated behavior docs not deserve the rating, good or bad.


a) Reporting Manager Provide feedback to the reviewer / HOD on the employees behavioral traits indicated in the PMS Policy Manual Ensures that employee is aware of the

normalization / performance appraisal process Address employee concerns / queries on

performance rating, in consultation with the reviewer b) Reviewer (Reporting Managers Reporting Manager) Discuss with the reporting managers on the behavioral traits of all the employees for whom he / she is the reviewer Where required, independently assess employees for the said behavioral traits; such assessments might require collecting data directly from other relevant employees c) HOD Head of the Department (In some cases, a reviewer may not be a HOD)


Presents the proposed Performance Rating for every employee of his / her function to the Normalization committee.

HOD also plays the role of a normalization committee member

Owns the performance rating of every employee in the department

d) HR Head Secretary to the normalization committee Assists employees e) Normalization Committee Decides on the final bell curve for each function in the respective Business Unit / Circle Reviews the performance ratings proposed by the HODs, specifically on the upward / downward shift in ratings, to ensure an unbiased relative ranking of employees on overall performance, and thus finalize the performance rating of each employee HODs / Reporting Managers in

communicating the performance rating of all the


KEY CONCEPTS IN PMS-Performance Management System

In order to understand the Performance Management System at BHARTI, some concepts need to be explained which play a very important role in using the PMS successfully. They are: KRAS (KEY RESULT AREAS): The performance of an employee is largely dependent on the KRA score achieved by the employee during that particular year. Thus, it is necessary to answer a few basic questions i.e. o What are the guidelines for setting the KRAs for an employee? o How does an employee write down his KRAs for a particular financial year? o o KRAs: The Four Perspectives. How is the KRA score calculated for an employee on the basis of the targets sets and targets achieved?

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. An employee is assigned the rating on the basis of the intensity of the behavior displayed


by him. 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. 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. This framework also tries to assess the performance of an employee objectively. THE PERFORMANCE RATING PROCESS: The rating process tries to explain the four different types of rating that an employee can achieve i.e. EC, SC, C and PC. It also explains the criteria, which is considered for awarding any of these ratings to the employee. PROMOTION GUIDELINES: The guidelines provide AND the RATING and framework DISRTRIBUTION normal within distribution which the


performance appraisal process has to work. 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. These guidelines also help in deciding upon the promotion cases in a year.





consistently above

Performs Achieves final

above score


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, solutions Sees and exploits opportunities Delivers ahead of time Sees the wider pictureimpacts across business Focuses on whats 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


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


Develops others Provides open and honest feedback

Able to establish and lead cross-functional teams


RATING SCALE Instructions: For the following performances factors, please indicate on the rating Scale your evaluation of the employee named below: Employees Name: Raters Name
Excellent 5 Good 4

Department Date.
Acceptable 3 Fair 2 Poor 1

1. 2. 3. 4. 5. 6.

Dependability Initiative



-------------------------------------------------+ +



Overall Output -----Attendance Attitude Co-Operation ----------------

20. Quality of Work TOTAL







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



RESEARCH DESIGN: Research Design refers to "framework or plan for a study that guides the collection and analysis of data". 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. These studies help in a proper definition of the problem, and development of specific hypothesis is to be tested later by more conclusive research designs. 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. (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.


These studies can be either: a) Descriptive or b) Experimental Thus, it was mix of both the tools of Research Design that is, Explorative as well as Conclusive. SAMPLING PLAN: Sample Size = 40 Employees Sample Area = BSNL Exchange, 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. 2. 3. Bar graphs Pie Diagrams Doughnuts



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



Responses (in %)

Fully Satisfied Satisfied Cant Say Dissatisfied

2 24 44 30

Employee perception as to the frequency of appraisal

Options Once During The Service Period Continuous Never Cant Say

Response (in %) 2

92 0 6

If continuous appraisal what should be the gap between two appraisal period


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







Who should do the appraisal?

Options Response ( in % )


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?


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. In the survey conducted it was observed that nearly 74 % of the


respondents agree that Performance Appraisal does leads to polishing the skills of the employees. 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.

Does personal bias creeps-in while appraising an employee

Options Yes No

Response ( in % ) 82 18

In the process of appraising, both the parties are human being, that is, the one who is being apprised and the other who is appraising. Thus, there bound to be subjectivity involved, be it an objective way of appraising. Thus, when asked from among the sample size of 50 respondents, as huge as 82 % respondended that personal bias do creep in while appraising an individual. Hence, it is inevitable to say that personal likings do not come in the process of appraisal. It is the extent to which the appraiser manages it so that it does not become very partial and bias. If given a chance, would employees like to review the current appraisal technique? Options Response ( in % )

Yes No Cant Say

72 4 24

Appropriate method of conducting the performance appraisal


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


%) Yes No 96 4



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



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

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



Should the appraisal process be: a) Once during the service period c) Never b) Continuous d) Cant Say


What in your opinion should be the time period of conducting continuous a) Appraisal? b) Half Yearly c) Yearly


Any specific reason

8. Does Performance Appraisal helps in improving the productivity of the employees?

Motivated + Feedback - Feedback Neutral



9. Who in your opinion should appraise the employee?




b) Peer d) Self Appraisal f) All of the above

c) Subordinates e) Consultant

10.Does the appraisal system helps in polishing the skills or performance area? a) Yes 11. b) No c) Somewhat

Do you think personal bias creeps in while appraising an individual?

a) Yes 12.

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) Cant Say


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. b) For every trait, each subordinate is paired with and compared to every other Subordinate. c) Reviewing employees on the basis of identified specific examples of good or poor performance.


Setting specific measurable goals with each employee and periodically reviewing the progress made.


Reviewing performance through case studies, presentations, role playing, etc. for future performance.


Receiving feedback from people whose views are considered helpful and relevant including the appraise himself.


Does Performance Appraisal leads to identification of hidden potential of the employees?

a) Yes

b) No

15. Suggestions and views.............................................................. ........................................................................................................................... ........................................................................................................................... ........................................................................................................................... .

Thank you, Date --/--/--



CHALLENGES OF PERFORMANCE APPRAISAL With the increased significance of performance appraisal,

challenges confronting the system are mounting. One serious challenge facing the performance appraisal system relates to assessment of self-managed teams. Popularly called empowered teams, these self-managed teams create special challenges for performance appraisal-empowered teams perform without supervisors. Historically, if one recalls, it is the supervisor who assesses the performance of his or her subordinates. Another challenge is that both, individual and team performance, need to be measured. 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. Figure below contains a typical model of team appraisal. Challenges of Appraisal:

Create a culture of excellence that inspires every

employee to improve and lend himself or herself to be assessed







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



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. Incorporate stretch elements for each target. Fix the minimum acceptable target

Determine intangible parameters (like initiative), 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. Discount subjective factors by including assessors from outside the team to identify outstanding individuals.


Example : Bsnl performance appraisal













SELF REVIEW (by employee)





B2] PERFORMANCE AGAINST OBJECTIVES(BY IMMEDIATE SUPERIOR) OUTSTANDING INADEQUATE C1] Appraisal of immediate superior) C2] 1. 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, without waiting to be told. Ability to interact effectively with people at all levels to gain their confidence and respect and work

V. GOOD OUTSTANDING Critical Attributes(by






in a collaborative and participative manner. 4. RESOURCEFULNESS Ability to muster resources to achieve desired results and device ways and means of solving problems in difficult situations. 5. Ability to convey COMMUNICATION thoughts and SKILLS feelings clearly both through oral as well as written expressions for better understanding. 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. D2] OTHER TRAINING PROGRAMMES 1. D3] SPECIFIC DEVELOPMENT PLANS 2. Code 2.





Proposed action (tick as applicable) E] Job rotaion Job enlargement Special assignment Deputatiomn of other dept Others(please specify)

Details of Actions Required



Signature of employee