Project report on Performance Appraisal of BSNL
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This document provides an overview of Bharat Sanchar Nigam Limited (BSNL), the largest telecommunications company in India. Some key points: - BSNL was formed in 2000 and provides both fixed line and mobile phone services across India except Delhi and Mumbai. - It has over 64 million customers and offers services like landlines, mobile, broadband, and intelligent networks. - BSNL aims to add over 100 million more customers by 2010 but faces challenges from intense competition and criticism over poor customer service. - Improving customer service and retaining fixed line customers will be important for BSNL's future success in the growing Indian telecommunications market.
Project report on Performance Appraisal of BSNL
- 1. SHERWOOD COLLEGE OF PROFESSIONAL MANAGEMENT A SUMMER TRANING REPORT ON “PERFORMANCE APPRAISAL” SUBMITTED IN THE PARTIAL FULFILLMENT OF THE DEGREE OF BACHELOR’S OF BUSINESS ADMINISTRATION UNDER THE GUIDANCE OF:Dr. Rajneesh Srivastava SUBMITTED BY:ABHISHEK KUSHWAHA BBA-5 SEMESTER ROLL NO:- 11072101002 1
- 2. ACKNOWLEDGEMENT I consider myself very fortunate to get the opportunity to conduct the training approval and project assignment by BHARAT SANCHAR NIGAM LIMITED (BSNL). I got opportunity to get a practical exposure into actual environment and it provides me the golden opportunity to make my theoretical concept of Recruitment and selection process in a more clear way. I am very much thankful to MR. J.P Tiwari for providing me the opportunity to do the training in the BSNL. Also, thankful to all the officials at BSNL for their cooperation during my training for providing me necessary information without which this project report would not have been completed. I have gone through various sites, Research Books, Magazines and Newspapers to get the accurate information for analysis and tried to find the best conclusion. ABHISHEK KUSHWAHA (BBA Vth SEM) 2
- 3. PREFACE Summer training is the most vital part of an BBA course, both as a link between theory and actual industrial practices as well as an opportunity for hands on experience in corporate environment. I therefore, consider myself fortunate to receive the training in an esteemed organization viz. Bharat Sanchar Nigam Limited. Yet the opportunity could not have been utilized without the guidance and support of many individuals who although held varied positions, but were equally instrument for although completion of my summer training. Dr. Rajneesh Srivastava and also thanks to all my faculty members and my Parents and friends. However, I accept the sole responsibility errors of omission and would be extremely grateful to readers of this project report if they bring such mistake to my notice. ABHISHEK KUSHWAHA (BBA Vth SEM) 3
- 4. EXECUTIVE SUMMERY Most organizations have a performance appraisal (PA) program that has evolved over time and is likely not meeting the needs of employees and managers. Many competing PA theories and practices exist making development of an effective program difficult. However, done well, a strong PA program reinforces organizational culture and helps employees achieve high levels of performance. An effective PA program can improve key business measures such as Return on Assets, Return on Equity, profit margins and earnings. Every strong PA program has three elements: performance tracking, informal feedback, and formal appraisal. Build on these three elements to customize your program to your organization‟s goals and values: o Informal coaching is the single most significant factor in easing retention and developing talent. o Forced ranking and forced distribution are techniques that work well in competitive environments. Avoid them in team-based departments. o 360-degree evaluations help to improve people management abilities. Stay away from using them for manager compensation or disciplinary purposes. 4
- 5. TABLE OF CONTENT CONTENT PAGE NO. Acknowledgement 2 Preface 3 Executive summary 4 Company profile 6-19 Introduction 20-48 Performance appraisal process Performance appraisal process at Reliance HR Services private Ltd. Research Methodology 49-58 Analysis & Interpretation 59-70 Limitation 71 Suggestion 73-75 Conclusion 75 Bibliography 76 Appendix 77 5
- 7. INTRODUCTION TYPE AVAILABILITY COUNTRYWIDE OWNER GOVERNMENT OF INDIA KEY PEOPLE CHAIRMAN & DIRECTOR-RAJESH KUMAR UPADHYAY FOUNDED 19TH CENTURY, INCORPRATED IN 2000 WEBSITE 1.1 COMMUNICATION SERVICE PROVIDER WWW.BSNL.IN OVERVIEW OF THE BSNL: BSNL is India's oldest and largest Communication Service Provider (CSP). Currently BSNL has a customer base of 64.8 million (Basic & Mobile 7
- 8. telephony). It has footprints throughout India except for the metropolitan cities of Mumbai and New Delhi which are managed by MTNL. As on March 31, 2007 BSNL commanded a customer base of 33.7 million Wire line, 3.6 million CDMA-WLL and 27.5 million GSM Mobile subscribers. BSNL's earnings for the Financial Year ending March 31, 2006 stood at INR 401.8b (US$ 9.09 b) with net profit of INR 89.4b (US$ 2.02 billion). Today, BSNL is India's largest Telco and one of the largest Public Sector Undertaking of the country with authorized share capital of US$ 3.95 billion (INR 17,500 Crore) and net worth of US$ 14.32 billion. 1.3 PROFILE OF ORGANISATION: OVER VIEWS OF ORGANISATION HISTORY:The foundation of Telecom Network in India was laid by the British sometime in 19th century. The history of BSNL is linked with the beginning of Telecom in India. In 19th century and for almost entire 20th century, the Telecom in India was operated as a Government of India wing. Earlier it was part of erstwhile Post & Telegraph Department (P&T). In 1975 the Department of Telecom (DoT) was separated from P&T. DoT was responsible for running of Telecom services in entire country until 1985 when Mahanagar Telephone Nigam Limited (MTNL) was carved out of DoT to run the telecom services of Delhi and Mumbai. It is a well known fact that BSNL was carved out of Department of Telecom to provide level playing field to private telecoms. Subsequently in 1990s the telecom sector was opened up by the Government for Private investment, therefore it became necessary 8
- 9. to separate the Government's policy wing from Operations wing. The Government of India corporatized the operations wing of DoT on October 01, 2000 and named it as Bharat Sanchar Nigam Limited (BSNL).BSNL operates as a public sector. “MAIN SERVICES BEING PROVIDED BY BSNL” BSNL provides almost every telecom service, however following are the main Telecom Services being provided by BSNL in India:1. UNIVERSAL TELECOM SERVICES: Fixed wire line services & Wireless in Local loop (WLL) using CDMA Technology called bfone and Tarang respectively. BSNL is dominant operator in fixed line. As on March 31, 2007 (end of financial year) BSNL had 76% share of fixed and WLL phones. BSNL MOBILE PRE-PAID MOBILE 2. CELLULAR MOBILE TELEPHONE SERVICES: BSNL is major provider of Cellular Mobile Telephone services using GSM platform under brandname Cellone. Pre-paid Cellular services of BSNL are know as Excel. As on March 31, 2007 BSNL had 17% share of mobile telephony in the country. 9
- 10. BSNL Broadband 3. INTERNET: BSNL is providing internet as dial-up connection (Sancharnet) and ADSL-Broadband Data one. BSNL has around 50% market share in broadband in India. BSNL has planned aggressive rollout in broadband for current financial year. 4. Intelligent Network (IN): BSNL is providing IN services like televoting, toll free calling, premium calling etc. BSNL PRESENT & FUTURE Since its corporatisation in October 2000, BSNL has been actively providing Connections in both Urban and Rural areas and the efficiency of the company has drastically improved from the days when one had to wait for years to get a phone connection to now when one can get a connection in even hours. Pre-activated Mobile connections are available at many places across India. BSNL has alsounveiled very cost-effective Broadband internet access plans (DataOne) targetedat homes and small businesses. At present BSNL enjoy's 47% of market share of ISP services. Year of Broadband 2007 10
- 11. Former Indian Communications Minister Thiru Dayanidhi Maran had declared year 2007 as "Year of Broadband" in India and BSNL is gearing up to provide 5 million Broadband connectivity by the end of 2007. BSNL has upgraded existing Dataone (Broadband) connections for a speed of up to 2 Mbit/s without any extra cost. This 2 Mbit/s broadband service is being provided by BSNL at a cost of just US$ 5.5 per month. Further, BSNL is planning to upgrade its broadband services to Triple play (telecommunications) in 2007. BSNL has been asked to add 108 million customers by 2010 by Former Indian Communications Minister Thiru Dayanidhi Maran. With the frantic activity in the communication sector in India, the target appears achievable, however due to intense competition in Indian Telecom sector in recent past BSNL's growth has slowed down. BSNL is pioneer of Rural Telephony in India. BSNL has recently bagged 80% of US$ 580 m (INR 2,500 crores) Rural Telephony project of Government of India. CHALLENGES:During Financial Year 2007-2008 (From April 01, 2006 to March 31, 2007) BSNL has added 9.6 million new customers in various telephone services taking its customer base to 64.8 million. BSNL's nearest competitor Bharti Airtel is standing at a customer base of 39 million. However, despite impressive growth shown by BSNL in recent times, the fixed line customer base of BSNL is declining. In order to woo back its fixed-line customers BSNL has brought down long distance calling rate under One India plan, however, the success of the scheme is not known. 11
- 12. However, BSNL faces bleak fiscal 2006-2007 as users flee, which has been accepted by the CMD BSNL. Presently there is an intense competition in Indian Telecom sector and various Telco‟s are rolling out attractive schemes and are providing good customer services. However, BSNL being legacy operator and its conversion from a Government Department earns lot of criticism for its poor customer service. Although in recent past there have been tremendous improvement in working of BSNL but still it is much below the Industry's Expectations. A large aging (average age 49 years (appx)) workforce (300,000 strong), which is mostly semiliterate or illiterate is the main reason for the poor customer service. Further, the Top management of BSNL is still working in BSNL on deputation basis holding Government employee status thus having little commitment to the organisation. Although in coming years the retirement profile of the workforce is very fast and around 25% of existing workforce will retire by 2010, however, still the workforce will be quite large by the industry standards. Quality of the workforce will also remain an issue. Access Deficit Charges (ADC, a levy being paid by the private operators to BSNL for provide service in non-lucrative areas especially rural areas) has been slashed by 37% by TRAI, w.e.f. April 01, 2007. The reduction in ADC may hit the bottom-line of BSNL. 12
- 13. VISION • To become the largest telecom Service Provider. MISSION To provide world class State-of-art technology telecom services to its Customers on demand at competitive prices. To Provide world class telecom infrastructure in its area of operation and to Contribute to the growth. OBJECTIVE: MP Telecom looks over the management, control and operation of the telecom network with the following aims and objective To build a high degree of customer confidence by sustaining quality and reliability in service. To upgrade the quality of telecom service to international level. Provision of telephone connections on demand in all the villages of M.P. Expansion of new services like Internet, Intelligent Network, ISDN, Internet Telephony, Video Conferencing, Broadband etc. Popularize Broadband Services and to be on-demand in the whole State. 13
- 14. Expansion of Cellular Mobile Telephone to all towns. To open Internet Kiosks (Cafe's) at all Block Head Quarters. To improve the quality of present services being given to the subscribers. To open more Customer Service Centers and upgrade the existing Customer Service Centers for better and friendly Customer care. Modernize PSTN network by making RSUs & AN-RAX. Plantation of Trees to make environment Clean & Green. To raise necessary financial resources for its developmental needs. To increase accessibility of services, by providing a large number of Local and NSD/ISD Public Call Offices (PCOs) so as to reach out to the masses. 14
- 15. Products • BSNL LANDLINE • BSNL MOBILE _ POSTPAID _ PREPAID _ UNIFIED MESSAGING _ GPRS/WAP/MMS _ DEMOs _ TARIFF • BSNL WLL • INTERNET SERVICES _ NETWORK _ BROADBAND _ WI-FI _ CO-LOCATION SERVICE _ BSNL WEB HOSTING _ DIAL UP INTERNET _ SMS& BULK SMS • BSNL BROADBAND • BSNL MANAGED NETWORK SERVICES • BSNL MPLS-VPN • ISDN • LEASED LINE 15
- 16. • INTELLIGENT NETWORK _ FREE PHONE SERVICE _ PREMIUM RATE SERVICE _ INDIA TELEPHONE CARD _ VIRTUAL PRIVATE NETWORK (VPN) _ VOICE VPN _ UNIVERSAL NUMBER _ UNIVERSAL PERSONAL NUMBER _ TELE VOTING • VIDEO CONFERENCING • AUDIO CONFERENCING • TELEX/ TELEGRAPH • EPABX _ EPABX _ FREE EPABX _ CENTREX • HVNET • INMARSAT • TRANSPONDER 16
- 17. SWOT Analysis (Strength / Weakness/ Opportunities / Threats) ● Strength The telecom sector is poised for continued high growth and our company is well placed to benefit from this phenomenon. BSNL is the largest telecom operator providing all kind of telecom services throughout the country. The widest network reach of the company is its USP. ● Weakness BSNL being Government Company has no any major weakness in the business. ● Opportunities Having biggest infrastructure provider it is easy for company to enter into any area. BSNL has vast range of product as well as better infrastructure it makes the to deal with any kind of customer. Dealing in urban area now it has also opportunities in rural area. ● Threats The company operates in an industry, which is highly competitive and faces intense Competition from other service provider, who enjoy certain advantages in their Procurement as well as in selection of technology. 17
- 18. BSNL have several regional offices to localize its operations in India REGIONAL OFFICES OF BSNL MEERUT DEHRADUN DELHI LUCKNOW GROWTH PLAN OF BSNL 18
- 19. BSNL's future plan include a fast expansion programme of increasing the present 93 million lines to twice that number by 2009 and some 120 million lines by 2010. The shift in demand from voice to data domination, and from wire line to wireless, has revolutionized the very nature of the network. BSNL has already set in place several measures that should enable it to evolve into a fully integrated multioperator by 2009 and its incumbent status, size, infrastructure and human resource should certainly, give it a distinct advantage. Consolidation of the network and maintaining high quality of service comparable to International standards is the key aim of the Growth Plan. Objective of the plan are: The telephone connection shall be provided on demand and it shall be sustained. The Network shall be made fully digital. All the technologically obsolete analog exchanges will be replaced with digital exchanges. To provide digital transmission links up to all SDCAs. Digital connectivity shall be made available to all the exchanges by 2007-09 Extensive use of Optical fiber System in the local, Junction and long distance network so as to make available sufficient bandwidth for the spread of Internet and Information technology. ISDN services shall be extended to all the district headquarters, subject to demand. To provide Intelligent Network Services, progressively all over the country (major cities have already been covered). To set up Internet Nodes progressively up to District headquarters level. Upgrading existing STD/ISD PCOs to full fledged Public Tele-Info Centers (PTIC) for supporting Multi media capability and Internet Access 19
- 20. INTRODUCTION 20
- 21. PERFORMANCE APPRAISAL Management Performance appraisal is a method of evaluating the evaluating the behavior of employees Performance appraisal or merit rating is one of the oldest and most universal practices of in the work spot, Normally including both the quantitative and qualitative aspects of job performance. Performance appraisal can be an effective instrument for helping people grow and develop in organizational setting. Through a Well organized appraisal system. An employee can create learning spaces for himself in an organization. Effectively practiced and development oriented performance appraisal & Review system, substantially contribute to the organization health. Organization cannot do away with PERFORMANCE APPRAISAL. Some form of assessment of performance on a continuing basis is essential for survival as well as growth of an organization. If and develop yardsticks to measure it, if you want to improve performance. The performer has to be able to understand it. Performance appraisal is a systematic appraisal of the employee‟s personality traits and performance on the job and is designed to determine his contribution and relative worth to the firm. 21
- 22. A formal definition of performance appraisal is that, it is the systematic evolution of the individual with respect to his or her performance on the job and his or her potential for development “Performance appraisal is a formal structured system of measuring and evaluating an employee’s job, related behaviors and out comes to discover how and why the employee is presently performing on the job an how the employee can perform effectively in the future so that the employee, organization and society all benefit.” Under performance appraisal, we evaluate not only the performance of a worker but also his potential for development. 22
- 23. COMPONENTS OF APPRAISAL EVALUATION As we have seen performance evolutions can be made a verity of reasonscounseling, promotion, research, salary, administration or a combinations of these therefore it is necessary to begin by stating very clearly the objectives of the evolution program. Having done this, the personal evolution system should address the questions, who, what, when, where, how? Of performance appraisal “WHO” The appraisal can be accomplished by one or more individuals involving a combination of the immediate supervisor, a higher level manager, a personal manager, the assessee‟s peers, the assessee himself and the assessee‟s subordinates. Usually the immediate supervisor must be interested with the task of rating the assessee because he his most familiar with his work, and because he is also responsible for recommending or approving personal action based on the performance appraisal. The staff specialists, i.e. the personal officer also do appraisal. They may advise the supervisor while evaluating their subordinates stressing the need for evidence for making specific appraisal judgments and comparing a particular subordinate‟s evolution with those of others. The appraisal of an individual may also be done by his peers such appraisal proves effective in predicting future management success. 23
- 24. This approach has its disadvantage that the individual may rate himself excessively high then it would be if his superior rated him. Many companies use rating committees to evaluate employees. These committees consist of supervisors, peers, and subordinates. “WHAT” The “what” of the performance appraisal consists in appraising non supervisory employees for their current performance and managers for potential? It also includes evaluation of human trades. “WHY” The “why” of an appraisal is concerned with – a) Creating and maintaining a satisfactory level of performance of employees in there present jobs. b) Highlighting employee needs and opportunities for personal growth and development. c) Promoting understanding between the supervisor and his subordinates. d) Providing a useful criterion for determining the validity of selection and training methods and techniques and forming concrete measures for attracting individual of higher caliber to the enterprise. 24
- 25. “WHEN” The „when‟ answers the query about the frequency of appraisal? It has been suggested in formal counseling should occur continuously. The manager should discuss an employee‟s work as soon as possible after he has judged it. “WHERE” The where indicates the lo0cation where an employee may be evaluated. It is usually done at the place of work or office of the supervisor. “HOW” Under how the company must decide what different methods are available and which of these may be used for performance appraisal. Based on the comparative advantages and disadvantages it is decided which method suit the propose best. 25
- 26. PURPOSE OF PERFORMANCE APPRAISAL To create and maintain a satisfactory level of performance. To provide information making decision for rewardingly of retrenchment etc. To guide the job changes with the help to continuous ranking. To contribute to the employee growth and development through training, self and management development program. To facilitate for testing and validating selection tests, interview techniques through compeering there scores with performance appraisal ranks. To facilitate fair and equitable compensation based on performance. To help the superiors to have proper understanding about there subordinates. 26
- 27. WHAT SHOULD BE RATED The seven criteria for assessing performance are: 1. Quality: the degree to which the process or result of carrying out an activity approach perfection 2. Quantity: the amount produce expressed in monetary terms number of units, or number of completed activity cycles 3. Timeliness: the degree to which an activity or an result produced 4. Cost effectiveness: the degree to which the use of the organizations resources (e.g. human, monetary, technological, material) is maximized in the séance of waiting the highest gain 5. Need for supervision: the degree to which a job performer can carry out job function without supervisory assistance 6. Interpersonal impact: the degree to which performer promotes feeling of self – esteem, goodwill and cooperation among co- workers and subordinates. 7. Training: need for training of improving his skills knowledge. 27
- 28. OBJECTIVE OFPERFORMANCE APPRAISAL A good performance appraisal has following objectives: Help employee to Krishak Bharti Coperative Ltd. His weaknesses, and improve his strengths, and thus enable him to improve his performance and that of the department. Generate adequate feedback and guidelines from the reporting officers to the employee. Contribution to the growth and development of the employee thru helping in realistic goal setting Help identifying employees for the porpoise of motivating, training and developing them. Generate significant relevant, free and valid information about employees thus good performance appraisal and review system should primarily focus on employee development 28
- 29. METHODS OF APPRAISAL Broadly all the approaches to appraisal can be classified into: Past-oriented: Rating scales Checklist Forced choice method Forced distribution Critical incident method Behaviorally anchored‟ scales Field review method Annual confidential report Essay method Cost accounting approaches Comparative evolution approach Ranking method Paired – comparison method Future – oriented: Management by objectives Psychological appraisals Assessment center 29
- 30. METODS OF PERFORMANCE APPRAISALS Past Oriented Methods Rating scales: This is the simplest and the most popular technique for employee performance. The typical rating – scales system consists of several numerical scales, each representing job related performance criterion such as dependability, initiative output, attendance, attitude, co-operation and the like. Each scales ranges from excellent to poor. The rater checks the appropriate performance level on each criterion, and then computes the employees total numerical scores. Checklist: In this method, the raters don‟t evolutes employee performance, he supplies reports about it and the personal department does the final rating a series of question are presented concerning and employee to his behavior. The rater, then, to indicate if the answer to a question about an employee in positive or negative. Generally , the questions are on yes/no pattern. Forced choice method: In this the rater is given a series of statements about employee. These statements are arranged in block of two or more, and the rater indicates which statements is most or least disruptive of the employee 30
- 31. Critical incident method The, approaches focus on certain critical behaviors of an employee that makes all the difference between effective and non effective performance of a job. Such incidents are recorded by the superiors as and when they occur. Behaviorally Anchored Rating Scales Sometimes this is called behavioral expectation scales, are rating scales whose scale point are determined by statements of effective and ineffective behaviors. A rater must indicates which behavior on each scale best describes an employee‟s performance. Field review method This is an appraisal by someone outside the assesses on department usually someone from the corporate office or H.R department. The outsider review employee records and holds interviews with the rate and his or her superior . the method is primarily used for make promotional decision at the managerial level. Annual confidential report method In this method each employee is rated confidentially by one or more senior officers for his performance. The report deals with the years work and general opinion of the rater towards the employee. The main problem with his method is that it is not data based and the appraisal is done the bases of impression. 31
- 32. Easy method In the essay method, the rater must describe the employee with in a number of broad categories such asa) The rater‟s overall impression of the employee‟s performance b) The promotability of the employee c) The jobs that the employee is now able or qualified to perform d) The strength and weaknesses of the employee and the traning and the development assistant required the employee. Comparative Evolution Approaches These are a collection of a different methods that compare one worker‟s performance with that his / her co-workers. Supervisors usually conduct comparative appraisals. As these appraisals can results in a ranking from best to worst they are useful on deciding merits-pay increases promotions and organizational rewards. We can classify it intoa) Ranking method In this, the superior his or her subordinates in the order of there merits starting from the best to the worst,. This method is subject to the hallo and Recency effects, although ranking by two or more raters can be averaged to help reduce biases. It advantages include ease of administration and explanation. b) Paired – Comparison method :Under this method the appraiser compares each employee with every other employee, one at a time. The number of comparisons may be calculated with the help of formula, which reads thus-: N (N-1)/2 32
- 33. 360 DEGREE PERFORMANCE APPRAISAL Typical appraisers are: supervisors, peers, subordinates employees themselves users of service and consultants. Performance appraisal by all these parties is called” 360 DEGREE PERFORMANCE APPRAISAL” 1. Supervisors: Supervisors include superiors of the employee other superiors having knowledge about the work of the employee and department head or manager. General practices is that immediate superiors appraise the performance, hitch in turn reviewed by the departmental head /manager. 2. Peers:Peer appraisal may be reliable if the work group is stable over a reasonably long period of time and perform tasks that require integration. 3. Subordinates:The concept of having superiors rated by subordinates is being used in most organizations today especially in developed countries. Such a novel method can be useful in other organizational settings too provided the relationship between superiors and subordinates are coordinal. 4. Self-Appraisal:In individuals understand the objective they are expected to achieve and the standard by which they are to be evaluated, they are to a great extend in the best position to appraise their own performance. 33
- 34. 5. Users of Service Customers:Employee performance in service organization relating to behaviors, promptness, speed in doing the job and accuracy, can be better judged by the customers or users of services. 6. Consultants:Sometimes consultants may be engaged for appraisal when employees or employers not trust supervisor and management does not trust the selfappraisal a peer appraisal or subordinate appraisal. 34
- 35. THE POST APPRAISAL INTERVIEW This interview provides the employee the feedback information, and an opportunity to the appraiser to employee his rating, the trail and behavior he has taken into consideration etc. Further it helps both the parties to review standards, set new standards based on the reality factors and helps the appraisal to offer his suggestion, help, guide and coach the employee for his advancement . Thus, the post appraisal interview is designed to achieve the following the objectives. To let employee know where stand To help employee do better job by clarifying what is expected of them To plan opportunities for development and growth To provide an opportunity for employees to express themselves on performance related issue. Thus, post appraisal interview is most helpful to the employee as well as his superior. 35
- 36. KEY ELEMENTS OF PA SYSTEMS 1) Performance Improvement:Performance feedback allows the employee, manager, and personnel specialists to interview with appropriate action to improve performance. 2) Compensation Adjustments:Performance evaluations help decision – makers determine who should receive pay raises. Many firms grants part or all of their pay increase and bonuses based upon merit, which is determine mostly through performance appraisal. 3) Placement Decisions:Promotions, transfers, and demotions are usually based on past on anticipated performance. 4) Training and Development Needs:Poor performance may indicate the need for retraining. Likewise, good performance indicate untapped potential that should be developed. 5) Career Planning And Development:Performance feedback guides career decisions about specific career paths. 6) Information Inaccuracies:Poor performance indicate errors in job analysis information‟s human resource plan, or other parts, or the personal management 36
- 37. information‟s systems. Reliance on inaccurate information may have led to inappropriate hiring, training, or counseling decisions. 7) Job Decision Errors:Poor performance may be a system of ill-conceived job designs. Appraisals help diagnose these others. 8) Equal Employment opportunity:Accurate performance appraisals that actually measure job- related performance ensure that internal placement decisions are not discriminatory. 9) Feedback to human resource:Good/bad performance throughout the organization indicate how well the human resource function is performing. 37
- 38. STAGES OF PERFORMANCE APPRAISAL PROCESS 1 2 3 4 5 6 7 8 9 • PERFOMANCE STANDEARDS ARE ESTABLISHED • INFORM THESE STANDARDS • INSTRUCTION GIVEN FOR APPRAISAL • FINDIND OUT THE INFLUENCE • COMPARING THE PERFORMANCE • FINDING OUT DEVIATION • COMMUNICATING, THE ACTUAL PERFORMANCE • SUGGESTING NECESSARY CHANGES • FOLLOW-UP OF PERFORMANCE APPRAISAL REPORT 38
- 39. Performance Appraisal is a Nine-Step Process: At the First stage, performance standards are established based on job description and job specification. The standard should be clear, objective and incorporate all the factors. The Second stage, is to inform these standards to all the employees including appraisers. The Third stage is following the instruction given for appraisal measurement of employee performance by the appraisers through observations interview, records and reports The Fourth stage is finding out the influence of various internal and external factors on actual performance. The Fifth stage is comparing performance with that of other employee and previous performance . The Sixth stage is comparing the actual performance with the standards and finding out deviations. The Seventh stage is communicating, the actual performance of the employee and other employees doing the same job and discuss with him the reasons for positive or negative deviations from the preset standards as the case may be. The Eighth stage is suggesting necessary changes in standards, job analysis internal and external environment. The Ninth stage is fallow up performance appraisal report. This stage includes guiding, counseling coaching and directing the employee or making arrangements for the training and development of the employee. 39
- 40. PROBLEMS OF PERFORMANCE APPRAISAL The major problem in performance appraisal :1) Rating Biases:The problem subjective measure (is that rating which is not verifiable by others) has the opportunity for biases include:- a) Halo effect b) The error of central tendency c) The leniency and strictness biases d) Personal prejudice e) The Recency effect Halo Effect:It is the tendency of the raters to defend excessively on the rating of one trait or behavioral consideration in rating all other traits or behavioral consideration. One way of minimizing the halo effect is appraising all the employee by one trait before going to rate basis of another trait. The Error Central Tendency:Some raters fallow play safe policy in-rating-by-rating all the employee on the middle point of the rating scale and they avoid rating the p[people at both the extremes of the scale. They fallow play safe policy 40
- 41. because of a answerability to management or lack of knowledge about the job and person he is rating or least interest in his job. The leniency and Strictness:The leniency bias crops when some raters have an tendency to be liberal in their rating by assigning higher rates consistently such rating do not several any purpose equally damaging one is assigning consistently low rates. d) Personal Prejudice : If the rater dislike any employee or any group, he may rate them at the lower them which may distort the rating purpose affect the career of these employee. The Recency Effect:The raters generally remember the recent actions of the employee at the time of rating and rate on the basis of this recent action. 1) Favorable or unfavorable rather than on the whole activities. 2) Failure of the superior in conducting performance appraisal and post performance appraisal interview. 3) Most part of the appraisal is based on subjectivity. 4) Less reliability and validity of the performance appraisal technique. 5) Negative ratings affect interpersonal relations system. 41
- 42. WHY APPRAISAL TECHNIQUES PROVE FAILURE Performance appraisal techniques techniques have often failed to give a correct assessment of the employee. The causes of such failure are:1) The supervisor plays dual and conflicting role of the both the judge and the helper. 2) Too many objectives often cause confusion. 3) The supervisor feels that subordinate appraisal is not rewarding. 4) A considerable time gap exist between two appraisal programs. 5) The skills required for daily administration and employee development are in conflict. 6) Poor communication keeps employees in the dark about what is expected of them. 7) There is the difference of opinion between a supervisor and a subordinate concerning the liter‟s performance. 8) Feedback on appraisal is generally unpleasant for both supervisor and subordinate. 9) Unwillingness on the part of supervisor to tell employee plainly how to improve their performance. 42
- 43. About Employee: Safe and Friendly Work Environment-: What sort of environment are you providing your employees. Use of Employees-: Is the business maximizing it‟s use of employee to best suit the business needs? Employee Knowledge-: How familiar (what knowledge) are your employee with the running of machine/equipments, products of the companies? Does employee require training? Employee Happiness-: Are the employees happy with their wages, rewards and hours of work given? 43
- 44. PERFORMANCE MATRIX In principle the individual performance matrix (IPM) can be notionally divided into two parts-: Team matrix Individual Matrix KRA 1 to 5 For achievement of the set targets, the prescribed credit points would accrue to all team members for the team performance and to an individual for the individual performance. Any drop / deviation from the targets will lead to „ Debit ‟ to while the overall debit points for the negative variance vis-à-vis has been prescribed for the team the individual will be liable to the lose additional points bin case of direct responsibility for deviation. These „debit‟ points will be determine depending on gravity of error, quantum of loss, extraneous/ inhibiting factors, etc. as a part of appraisal process. KRA 6 It is intended to cover every individual distinguishing contribution/ efforts made in respect of either assigned projects or innovations, cost saving 44
- 45. measures value additions etc. this has been specifically design to acknowledgement and reward individual excellence. KRA 7 (Health. Safety/fire, Environment) “Debit” will apply to an individual and his superiors but his not peers / others who may not be connected with the safety incident. Similarly there is scope to earn separate credit points for an individual through safety suggestion and reporting of “near misses ” and unsafe acts/ conditions/ KRA 8 (Training and HR) this is intended to cover self training, training of subordinates, for the training programs organized by learning centre are HR based on individual need assessment of self & subordinates. These also include quarterly review, counseling and maintaining of performance diary. KRA 9 (Quality System & Documentation) this include proper maintenance of each and every documents of ISO 9000 and 14001 for surveillance audits, also revision of SOPs / SOCs decided by the plant. 45
- 46. KRA 10 (Industrial Relations ) there is a scope for a team to earn separate credit points based on the number of implement suggestions. In this case the team means the concern immediate supervisor, production / department manager and plant manager. Disciplinary Action It will be deemed to be complete when the matter is brought to logical Conclusion resulting in either appropriate punishment or withdrawal of Charge sheet. However no debit will be accrued in the event of Prolonged enquiry beyond the control of the employee. Further for the Discipline violations not reported and discovered. Tier - II The appraisal for managerial key dimension determined carder wise With 20% weightage. 46
- 47. Performance Diary The performance diary is a meant to track / capture the significant performance events whether positive or negative (Credit or Debit). This is also the tool for recording the personal contribution in terms of innovative ideas, suggestions, cost saving efforts etc. The filling up the performance diary is most critical and important aspect on which the entire system rests. Each and every individual has responsibility to highlight „event‟ in the performance diary, timely and properly. While for an individual on the other hand, it may mean establishing clear responsibility for a fault/formal operation / misjudgment etc. on the other hand it will mean recording of credits worthy efforts / contribution which may otherwise go unnoticed. It is also essential to mention the impact of the incident in the terms of beneficial and detrimental consequences as the case may be. Where ever possible, the consequence needs to be quantified. Two important factors which is likely to be recorded in the performance diary are as follows-: 47
- 48. Facilitating Factor: Are those factors that are beyond the control of the appraise that have led to better performance. Example: Availability of resources in time . Inhibiting Factor: Are those factors that are beyond the control of the appraise they have led to poor performance. EXAMPLE: power failure that has led to loss of output. Whom it will be Available: The performance diary will remain in custody of the immediate superior and it will be the joint responsibility of the appraise to maintain the sanctity of this instrument through timely and meticulous recording. Infect, maintenance of “performance diary” has been kept as the important parameter for performance assessment. Who will be The Appraiser: The appraiser will be the sectional head / departmental head. 48
- 50. RESEARCH The research design of this project is exploratory. Though each research study has its own specific purpose but the research design of this project on BSNL is exploratory in nature as the objective is the development of the hypothesis rather than their testing. The research designs methods of financial analysis. Through of comparative balance sheet in comparative statement, I am studying on balance sheet of BSNL of five year. So taking comparative statement, I am going to analyzed of five years balance sheet of BSNL METHODOLOGY Every project work is based on certain methodology, which is a way to systematically solve the problem or attain its objectives. It is a very important guideline and lead to completion of any project work through observation, data collection and data analysis. “Research Methodology comprises of defining & redefining problems, collecting, organizing & evaluating data, making deductions & researching to conclusions.” - Clifford Woody 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: 50
- 51. 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. 51
- 52. SAMPLING PLAN: Sample Size = 50 Employees Sample Area = BSNL lucknow Utter Pradesh Duration = 6 weeks RESEARCH PROBLEM I have selected that PERFORMANCE APPRAISER as research problem for my summer training project. As a research problem is the situation that causes the researcher to feel apprehensive, confused and ill at ease. It is the demarcation of a problem area within a certain involving the WHO or WHAT the WHERE the WHEN and the WHY of the problem situation. RESEARCH OBJECTIVE How productivity relates with performance appraisal. In addition, the major factors of performance appraisal, which have taken a part in increasing productivity of the organization. 52
- 53. RESEARCH INSTRUMENT USED QUESTIONNAIRE: The term questionnaire usually refers to a self administered processes whereby he respondent himself read the question and records without the assistance of an interviewer. INTERVIEW: The interview method of collection data involves presentation of oral- verbal stimuli and reply in terms of oral-verbal response. EXPLORATORY RESEARCH Exploratory research studies are also termed as formulating studies. The main purpose of such studies that of formulating of the problem for more precise investigation or of developing the working hypotheses from an operational point of view. An exploratory research focuses on the discovery of ideas and is generally based on secondary data. It consists: Search of secondary data and literature Survey 53
- 54. SEARCH OF SECONDARY DATA AND LITERATURE : The quickest and most economical way is to find possible hypotheses from the available literature. The past research may be suitable may suitable sources of information to develop new hypotheses. The researcher can search them for his research purpose. SURVEY REPORT: Survey means the survey of people who have had practical experience with the problem to be study. These individual can be top executives, sales manager, wholesaler and retailer processing valuable knowledge and information about the problem environment. 54
- 55. RESEARCH INSTRUMENTS USED: I have used the following research instrument in my project :- QUESTIONNAIRE-: The term questionnaire usually refers to a self – administered process whereby the respondent himself read the question and records without the assistance of an interviewer. INTERVIEW-: The interview method of collection data involves presentation of oral-verbal stimuli and reply in terms of oral- verbal response. SAMPLING TECHNIQUE USED When field studies are under are under taken in practical life, consideration of time cost and some other factors almost invariably lead to selection of respondents. The selected respondents constitutes a sample and the selection process is called sampling technique. A sample design is define plan determined before any data are actually collected for obtaining a sample from a given population. Sample can be either probability sample or non probability sample. I have selected simple random sampling in my project. 55
- 56. SIMPLE RANDOM SAMPLING: This type of sampling is also known as chance sampling or probability sampling where each item in the population has an equal chance of being selected in the sample. SAMPLE SIZE: When a survey is undertaken and when it is not possible to cover the entire population the researcher has to answer the basic question – how large should be sample be ? the sample size decision is related directly to research cost. The intended sample size is the number of participants planned to be included in the trial, usually determined by using a statistical power calculation. The achieved sample size is the number of participants enrolled, treated , or analyzed in the study. I have taken 50 people in my sample size as the sample size should be neither so small nor so large. 56
- 57. METHOD USED FOR DATA COLLECTION The task of data collection begins after a research after a research problem has been defined and research design chalked out. While deciding about the method of data collection to be used for the study the researcher should keep in mind two types of data-: 1) Primary Data 2) Secondary Data 1. PRIMARY DATA Those data that have been observed and recorded by the researcher for the first time in their knowledge. Sources: Questionnaire Interview method 2. SECONDARY DATA: Those data that have been compile by some agency other than user. Sources: Company profile Magazine Internet Books Previous report 57
- 58. ANALYTICAL TOOLS USED The term analysis refers to the computation of certain measures along with searching for pattern of relationship that exists among data group. Analysis is essential for a scientific study and for ensuring that we have all relevant data for making contemplated comparison. Therefore , I have used Tabulation, Graphs &charts in my project. 58
- 59. DATA ANALYSIS 59
- 60. 1. Are you aware of the objective of the performance appraisal system? OPTIONS NO OF RESPONDENT(SAMPLE SIZE 50) PERCENTAGE VERY MUCH 42 84% SOME WHAT 7 14% DON’T KNOW 1 2% 90 80 70 60 50 40 30 20 10 0 very much some what don't know INTERPRITATION- 84% Employees are aware of the object of the performance appraisal system. 60
- 61. 2. Performance appraisal helps the organization in achieving goal. OPTIONS NOS OF RESPONDENT(Sample PERCENTAGE size 50) YES 38 76% NO 10 20% DON’T KNOW 2 4% 80 70 60 50 40 30 20 10 0 yes no don't know INTERPRITATION - 76% Employees say yes that performance appraisal helps the organization in achieving goal. 61
- 62. 3. Hold meeting in the beginning of the year to explain & clarify activity task & goals to be achieved. OPTIONS NOS OF RESPONDENT(Sample size 50) PERCENTAGE YES 39 78% NO 11 22% 90 80 70 60 50 40 30 20 10 0 yes INTERPRITATION-: no 78% Employees say that yes organized meetings helps goal and task. While the other 22% employees that is not very much helpful. 62
- 63. 4. Organization has to make a fixed duration for performance appraisal. OPTIONS NOS OF RESPONDENT (Sample size 50) PERCENTAGE YES 40 80% NO 10 20% 90 80 70 60 50 40 30 20 10 0 yes INTERPRITATION -: no 80% Employees agree with that is organization should have to make a fixed duration for performance appraisal. While the other 20% employees do not agree with this statement. 63
- 64. 5. Satisfied for point allocation on the basis of KRA‟s & managerial dimension. OPTIONS NOS OF RESPONDENT(Sample size 50) PERCENTAGE FULLY SATISFIED 20 40% SATISFIED 26 52% DISSATISFIED 2 4% UNCERTAIN 2 4% 60 50 40 30 20 10 0 fully satisfied satisfied INTERPRITATION-: dissatisfied uncertain 40% Employees are fully satisfied for point allocation on the basis of KRA‟s and managerial dimension. 64
- 65. 6. Performance appraisal affects the working efficiency of employees. OPTIONS NOS OF RESPONDENT(Sample size 50) PERCENTAGE YES 42 84% NO 8 16% 90 80 70 60 50 40 30 20 10 0 yes no INTERPRITATION-: 84% Employees say that yes performance appraisal system affect the working efficiency of employee. While the other 16% employees do not agree with this statement. 65
- 66. 7. Appraisal system is able to develop high result orientation approach. OPTIONS NOS OF RESPONDENT(Sample size 50) PERCENTAGE YES 47 94% NO 3 6% 100 90 80 70 60 50 40 30 20 10 0 yes no INTERPRITATION-: 94% Employees say that yes the appraisal system is able to develop high result orientation approach. While the other 6% employees do not agree with us. 66
- 67. 8. The systems will also contribution in potential appraisal. OPTIONS NOS OF RESPONDENT(Sample size 50) 36 PERCENTAGE 72% YES 10 20% 4 8% NO DON’T KNOW 80 70 60 50 40 30 20 10 0 yes no don't know INTERPRITATION-: 72% employees think that the systems will also Contribution in potential appraisal. 67
- 68. 9. Promotion process in the organization is based on – OPTIONS NOS OF RESPONDENT(Sample size 50) PERCENTAGE PERFORMANCE 2 4% EXPERIENCE 6 12% BOTH 42 84% 90 80 70 60 50 40 30 20 10 0 Performance experience both INTERPRITATION-: 4% employees say that promotion says that process in the organization is based on performance, 12% employees say that based on experience and 84% say both. 68
- 69. 10 .The present performance appraisal system is transparent & Free from bias. OPTIONS NOS OF RESPONDENT(Sample size 50) PERCENTAGE YES 42 84% NO 8 16% 90 80 70 60 50 40 30 20 10 0 YES NO INTERPRITATION-: 84% Employees agree with this statement that the present performance appraisal system is transparent and free from bias. 69
- 70. 11 .Satisfied with the current performance appraisal system. PERCENTAGE OPTIONS NOS OF RESPONDENT(Sample size 50) HIGHLY SATISFIED 27 54% SATISFIED 18 36% DISSATISFIED 1 2% JUST SATISFIED 4 8% 60 50 40 30 20 10 0 Highly satisfied INTERPRITATION-: Satisfied Dissatisfied Just satisfied 54% Employees are highly satisfied with the current Performance appraisal system. While 36% employees are satisfied with the current performance appraisal system. 70
- 71. LIMITATIONS 71
- 72. LIMITATIONS A few limitations and constraints came in way of conducting the present study, under which the researcher had to work are as follows: Ø Although all attempts were made to make this an objective study, biases on the part of respondents might have resulted in some subjectivity. Ø 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. Ø 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. 72
- 74. SUGGESTIONS 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 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. 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. 74
- 75. There should not be a common appraisal form for every job position in the 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 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. 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. 75
- 76. BIBLIOGRAPHY BOOKSHuman Resource - V.S.P Rao Research Methodology - C. R. Kothari BSNL Manual - Company Magazines Annual Report of Organization Internal Records of Organization WEBSITES- www.bsnl.net www.bsnl.co.in 76
- 77. QUESTIONNAIRE (PERFORMANCE APPRAISAL SYSTEM AT B.S.N.L.) Name………………………………………………………………….. Designation…………………………………………………………… Department…………………………………………………………… 1) Are you aware of the objective of the performance appraisal system? a) Very much b) Some what c) Don’t know 2) Performance appraisal helps the organization in achieving goal? a) Yes b) No c) Can’t say 3) Do you hold meeting in the beginning of the explain & clarify activity task & goals to be achieved? a) Yes b) No 4) Should organization have to make a fixed duration for performance appraisal? a) Yes b) No 77
- 78. 5) To what extent are you satisfied for point allocation on the basis of KRA’s & managerial dimension? a) b) c) d) Fully satisfied Satisfied Dissatisfied Uncertain 6) Do performance appraisal affect the working efficiency of employee? a) Yes b) No 7) Whether the appraisal system is able to able to develop high result a) Yes b) No 8) Do you think that the system wills also contribution in potential appraisal? a) Yes b) No c) Can’t say 9) Promotion process in the organization is based ona) Performance b) Experience c) Both 10) Do you think that the present that the present performance appraisal system is transparent & free bias? a) Yes b) No 78
- 79. 11) Are you satisfied with the current performance appraisal system? a) b) c) d) Highly satisfied Satisfied Just satisfied Dissatisfied Give your suggestion for the performance appraisal system in BSNL Lucknow.. ……………………………………………………………………… ……………………………………………………………………… 79