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ON
PERFORMANCE APPRAISAL
TABLE OF CONTENT
CONTENT
PAGE NO.
Acknowledgement
Preface
Executive summary
Company profile
6-19
Introduction
20-48
Research Methodology
49-58
59-70
Limitation
71
Suggestion
73-75
Conclusion
75
Bibliography
76
Appendix
77
COMPANY
PROFILE
INTRODUCTION
1.1
TYPE
AVAILABILITY
COUNTRYWIDE
OWNER
GOVERNMENT OF INDIA
KEY PEOPLE
FOUNDED
WEBSITE
WWW.BSNL.IN
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.
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.
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
BSNL Broadband
6
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.
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.
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
Telcos are rolling out attractive schemes and are providing good customer services.
However, BSNL being legacy operator and its conversion from a Government
8
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.
VISION
OBJECTIVE: MP Telecom looks over the management, control and operation of the
telecom
10
Products
BSNL LANDLINE
11
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
INTELLIGENT NETWORK
_ FREE PHONE SERVICE
_ PREMIUM RATE SERVICE
_ INDIA TELEPHONE CARD
12
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
13
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
area. BSNL has vast range of product as well as better infrastructure it makes the to
deal with any kind of customer.
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.
MEERUT14
DELHI
The Network shall be made fully digital. All the technologically obsolete
analog exchanges will be replaced with digital exchanges.
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.
Upgrading existing STD/ISD PCOs to full fledged Public Tele-Info Centers (PTIC)
for supporting Multi media capability and Internet Access
16
INTRODUCTION
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
appraisal can be an effective instrument for helping people grow and develop in
17
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.
22
23
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
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
24
26
In the essay method, the rater must describe the employee with in a number
a)
b)
c)
d)
of broad categories such asThe raters overall impression of the employees performance
The promotability of the employee
The jobs that the employee is now able or qualified to perform
The strength and weaknesses of the employee and the traning and the
27
appraisers
are:
supervisors,
peers,
subordinates
employees
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.
5. Users of Service Customers:28
8)
31
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
32
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.
Halo effect
The error of central tendency
The leniency and strictness biases
Personal prejudice
The Recency effect
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
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
helper.
Too many objectives often cause confusion.
The supervisor feels that subordinate appraisal is not rewarding.
A considerable time gap exist between two appraisal programs.
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 liters performance.
35
8)
subordinate.
9) Unwillingness on the part of supervisor to tell employee plainly how to
improve their performance.
About Employee: Safe and Friendly Work Environment-:What sort of environment are you
providing your employees.
Use of Employees-:Is the business maximizing its 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?
36
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--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
37
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
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
38
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.
39
Performance Diary
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.
41
RESEARCH
METHODOLOGY
42
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
43
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.
44
45
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.
46
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
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.
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.
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.
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:
49
Those data that have been compile by some agency other than user.
Sources:
Company profile
Magazine
Internet
Books
Previous report
&charts in my project.
50
DATA ANALYSIS
OPTIONS
NO OF
RESPONDENT(SAMPLE
SIZE 50)
PERCENTAGE
42
84%
VERY MUCH
51
SOME WHAT
7
14%
2%
DONT KNOW
OPTIONS
NOS OF
RESPONDENT(Sample PERCENTAGE
size 50)
52
YES
38
76%
NO
10
20%
DONT KNOW
4%
3. Hold meeting in the beginning of the year to explain & clarify activity
task & goals to be achieved.
53
OPTIONS
NOS OF
RESPONDENT(Sample
size 50)
PERCENTAGE
YES
39
78%
NO
11
22%
INTERPRITATION-:
meetings helps goal and task. While the other 22% employees that is
not very much helpful.
54
NOS OF
RESPONDENT (Sample
size 50)
PERCENTAGE
YES
40
80%
NO
10
20%
INTERPRITATION -:
OPTIONS
NOS OF
RESPONDENT(Sample
size 50)
PERCENTAGE
FULLY SATISFIED
20
40%
SATISFIED
26
52%
DISSATISFIED
4%
UNCERTAIN
4%
INTERPRITATION-:
56
OPTIONS
NOS OF
RESPONDENT(Sample
size 50)
PERCENTAGE
YES
42
84%
NO
16%
57
OPTIONS
NOS OF
RESPONDENT(Sample
size 50)
PERCENTAGE
YES
47
94%
NO
6%
OPTIONS
NOS OF
RESPONDENT(Sample
size 50)
36
PERCENTAGE
72%
YES
10
20%
8%
NO
DONT KNOW
OPTIONS
NOS OF
RESPONDENT(Sample
size 50)
PERCENTAGE
59
PERFORMANCE
4%
EXPERIENCE
12%
BOTH
42
84%
60
OPTIONS
NOS OF
RESPONDENT(Sample
size 50)
PERCENTAGE
YES
42
84%
NO
16%
OPTIONS
NOS OF
RESPONDENT(Sample
size 50)
PERCENTAGE
61
HIGHLY SATISFIED
27
54%
SATISFIED
18
36%
DISSATISFIED
2%
JUST SATISFIED
8%
INTERPRITATION-:
Performance appraisal system. While 36% employees are satisfied with the current
performance appraisal system.
62
LIMITATIONS
LIMITATIONS
63
A few limitations and constraints came in way of conducting the present study,
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.
64
SUGGESTIONS
AND
CONCLUSION
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
65
The job and role expected from the employees should be decided well in
advance and that too with the consensus with them.
66
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.
BIBLIOGRAPHY
67
BOOKSHuman Resource
- V.S.P Rao
Research Methodology
- C. R. Kothari
BSNL Manual
- Company Magazines
WEBSITES-
www.bsnl.net
www.bsnl.co.in
QUESTIONNAIRE
(PERFORMANCE APPRAISAL SYSTEM AT B.S.N.L.)
68
Name..
Designation
Department
1) Are you aware of the objective of the performance appraisal system?
a) Very much
b) Some what
c) Dont know
2) Performance appraisal helps the organization in achieving goal?
a) Yes
b) No
c) Cant say
3) Do you hold meeting in the beginning of the explain & clarify activity task &
goals to be achieved?
a) Yes
b) No
b) Satisfied
c) Dissatisfied
d) 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) Cant 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
11)
Highly satisfied
Satisfied
Just satisfied
Dissatisfied
70
71