A STUDY ON

PERFORMANCE APPRAISAL
With reference to

A project report submitted to KRISHNA UNIVERSITY, Machilipatnam. In partial

fulfillment of the requirements for the award of the degree of MASTER OF BUSINESS
ADMINISTRATION

BY
K.KALESWARA RAO.
Regd No. Y15MBA134039.
(SPECIALIZATION: HUMAN RESOURCE & MARKETING)
(BATCH: 2015-2017 Under the guidance of Mr. M.TULASI NADH DEPARTMENT OF
BUSINESS ADMINSTRATIONK.B.N COLLEGE: PG CENTRE
Kothapet, Vijayawada-520001.

ISO 9001-2008.

NAAC A

K.B.N. COLLEGE: PG CENTRE

VIJAYAWADA - 520001.

CERTIFICATE
This is to certify that the project report titled PERFORMANCE APPRAISAL is a work
done by K.KALESWARA RAO. Under my supervision and guidance submitted to P.G
CENTRE, K.B.N COLLEGE, VIJAYAWADA in practical fulfillment of the requirement
for the award of MASTER OF BUSINESS ADMINISTRATION Affiliated to KRISHNA
UNIVERSITY.

PROJECT GUIDE

DIRECTOR

DECLARATION

This is to declare that the project report on PERFORMANCE APPRAISAL is a bonafied

work doneby me and submitted to P.G CENTRE KBN COLLEGE,VIJAYAWADAin
partial fulfillment of the requirement for the award of the degree of MASTER OF
BUSINESS ADMINISTRATION under KRISHNA UNIVERSITY.

Place: VIJAYAWADA.
Date:

K.KALESWARA RAO.
Reg. No: Y15MBA134039.

ACKNOWLEDGEMENT

I sincerely acknowledge my thanks to Dr. Y.NARASIMHA RAO, M.COM, Ph.D.,

DIRECTOR, K.B.N. COLLEGE: P.G.COURSES for an opportunity & his support to do
the project work.
I sincerely acknowledge my thanks to Director Dr. D.V.RAMANA MURTHY,
Ph.D., DIRECTOR, K.B.N. COLLEGE: P.G.CENTRE for his encouragement support for
the completion of the project work.
I sincerely thanks to my project guide Mr M.TULASINADH, for his encouragement
and support for the completion of the project work.
I express my thanks to Mr. Prasad Reddy DIVISIONAL ENGINEER,
BSNL,VIJAYAWADA., for his valuable guidance and support throughout the project work.
I express my gratitude to Mr.RajuSUB-DIVISIONAL ENGINEER BSNL,
VIJAYAWADA. For their continued support and encouragement throughout project work.
I am thankful to all faculty members of my college for the valuable guidance and
suggestions offered by them during the project work.
Finally I must express my gratitude to my parents and friends whose kind help and
understanding has made effort possible.

K.KALESWARA RAO.

Contents
Chapter-1

Introduction

Chapter-II

Approaches to study
Need for the study
Objectives of the study
Scope of the study
Methodology of study
Limitations
Expected contribution

Chapter-III
Company profile
Industry profile
Chapter-IV
Analysis and discussion
Chapter-V
Summary and suggestions
Questionnaire
Bibliography

LIST OF TABLES

S. NO
1

TABLE.
NO
4.1

CONTENTS

4.2

4.3

4.4

4.5

THE TABLE REPRESENTS THE APPRAISE SYSTEM

ARE CLEAR TO ALL THE EMPLOYEES

4.6

4.7

4.8

4.9

10

4.10

11

4.11

12

4.12

13

4.13

14

4.14

THE TABLE REPRESENTS THE TRAINING NEEDS

AFTER APPRAISAL
THE TABLE REPRESENTS THE FEEDBACK ABOUT
THEIR EMPLOYEE PERFORMANCE
THE TABLE REPRESENTS THE REVIEWS EACH
APPRAISAL AND DISCUSS THEM WITH HEAD OF THE
DEPARTMENT
THE TABLE REPRESENTS THE PERFORMANCE
APPRASIAL
THE TABLE REPRESENTS THE APPRAISE SYSTEM
ARE CLEAR TO ALL THE EMPLOYEES
THE TABLE REPRESENTS THE APPRAISE SYSTEM
ARE CLEAR TO ALL THE EMPLOYEES
THE TABLE REPRESENTS THE CLEAR TO ALL THE
EMPLOYEES
THE TABLE REPRESENTS THE CLEAR TO ALL THE
EMPLOYEES
THE TABLE REPRESENTS THE CLEAR TO ALL THE
EMPLOYEES

THE TABLE REPRESENTS THE FREEQUENCY OF

PERFORMANCE APPRSISAL
THE TABLE REPRESENTS THEPERFORMANCE
APPRSISAL FOLLOWED BY ORGANIZATION
THE TABLE REPRESENTS THE RELAIONSHIP
BETWEEN SUPERIORS AND SUBORDINATES
THE TABLE REPRESENTS THE APPRAISE TO
EXPRESS HIS DEVELOPMENTAL NEEDS

PAGES

LIST OF GRAPHS

S. NO
1

GRAPH
NO.
4.1.1

4.1.2

4.1.3

4.1.4

4.1.5

4.1.6

4.1.7

4.1.8

4.1.9

10

4.1.10

11

4.1.11

12

4.1.12

13

4.1.13

14

4.1.14

15

4.1.15

CONTENTS
THE GRAPHS REPRESENTS THE FREEQUENCY OF
PERFORMANCE APPRSISAL
THE GRAPHS REPRESENTS THE
THEPERFORMANCE APPRSISAL FOLLOWED BY
ORGANIZATION
THE GRAPHS REPRESENTS THE THE RELAIONSHIP
BETWEEN SUPERIORS AND SUBORDINATES
THE GRAPHS REPRESENTS THE THE APPRAISE TO
EXPRESS HIS DEVELOPMENTAL NEEDS
THE GRAPHS REPRESENTS THE APPRAISE SYSTEM
ARE CLEAR TO ALL THE EMPLOYEES
THE GRAPHS REPRESENTS THE TRAINING NEEDS
AFTER APPRAISAL
THE GRAPHS REPRESENTS THE THAT FEEDBACK
ABOUT THEIR EMPLOYEE PERFORMANCE
THE GRAPHS REPRESENTS THE THE REVIEWS
EACH APPRAISAL AND DISCUSS THEM WITH HEAD
OF THE DEPARTMENT
THE GRAPHS REPRESENTS THE PERFORMANCE
APPRASIAL
THE GRAPHS REPRESENTS THE PERFORMANCE
APPRASIAL
THE GRAPHS REPRESENTS THE PERFORMANCE
APPRASIAL
THE GRAPH REPRESENTS THE PERFORMANCE
APPRASIALS
THE GRAPHS REPRESENTS THE PERFORMANCE
APPRASIAL
THE GRAPHS REPRESENTS THE PERFORMANCE
APPRASIAL
THE GRAPHS REPRESENTS THE PERFORMANCE
APPRASIAL

Introduction

PAGES

Introduction to Human Resource Management:

In all activities men and resources are involved. For a long time men or workers were taken
for granted. Greater accent was given to resources, production machinery and top
managers. But at present in the modern large scale production of innumerable products
with a wide market, (where sky is the limit) in the last few decades the importance of
human resources and their development has come to therefore.
Human resources management is primarily concern with the people management. It is a
crucial subsystem in the process of management. The success or of the organization not only
depends on the material, machines and equipment but also on the personnel who put in their
best efforts for efficient performance of the job. Human resources management is the
management of employees skills, knowledge, talents aptitudes, creative abilities etc.
Human Resource Management (HRM) is a relatively new approach to managing people in
any organization. People are considered the key resource in this approach. it is concerned
with the people dimension in management of an organization. Since an organization is a body
of people, their acquisition, development of skills, motivation for higher levels of
attainments, as well as ensuring maintenance of their level of commitment are all significant
activities. These activities fall in the domain of HRM.
Human Resource Management is a process, which consists of four main activities, namely,
acquisition, development, motivation, as well as maintenance of human resources. Scott,
Clothier and Spiegel have defined Human Resource Management as that branch of
management which is responsible on a staff basis for concentrating on those aspects of
operations which are primarily concerned with the relationship of management to employees
and employees to employees and with the development of the individual and the group.

Human resource management is responsible for maintaining good human relations in the
organization. It is also concerned with development of individuals and achieving integration
of goals of the organization and those of the individuals. Human resource management is not
something that could be separated from the basic managerial function.
Most larger organizations in the public and private sector have their own
designated HR department, opening up a broad range of companies and sectors to applicants.
Recent years have seen increasing numbers of companies and sectors to applicants. Recent
years have seen increasing numbers of companies outsource key elements of their HR
function. So, opportunities within HR consultancies also exist.
Human resource management is not confined to business establishment only.
They are applicable to non-business organizations too such as education, health care,
recreation and the like. The importance of human resources to any organization need not be
over-emphasised. Human resource is the wealth of a nation and an organisation.
John Storey has specified four elements of HRM as follows:

A set of beliefs and assumptions.

A strategic trust embodying decisions about people management.
The central involvement of line management.

Dependents upon a set of levels to determine the employment relationships.

Performance Appraisal:
Whether you are a Human Resource professional, a manager or an employee; chances of you
arent thrilled with your current performance review process. They are rarely easy or effective
and they take up your precious time for little result with success factors, the performance
review process is streamlined and impactful. It becomes simple for managers to agree upon
goals and skills with the employee and then deliver constructive feedback on their progress.
With clearly outlined goals, the process benefits both the individual and the organization.An
organizations goals can be achieved only when people put in their best efforts. How to

ascertain whether an employee has shown his or her best performance on a given job? The
answer is performance appraisal. Employee assessment is one of the fundamental jobs of
HRM. But not an easy one though. This chapter is devoted to a detailed discussion of the
nature and process of conducting performance appraisal.
Meaning and definition:
In simple terms, performance appraisal may be understood as the assessment of an
individuals performance in a systematic way, the performance being measured against such
factors as job knowledge, quality, and quantity of output, initiative, leadership abilities,
supervision, dependability, cooperation, judgement, versatility, health, and the like.
Assessment should not be confined to past performance alone. Potentials of the employee for
future performance alone. Potentials of the employee for future performance must also be
assessed. 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 behaviours 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. The second definition includes employee behaviour as part of the
assessment. Behaviour can be active or passivedo something or do nothing.

Either way

behaviour affects job results. The other terms used for performance appraisal arc:
performance rating, employee assessment. Employees performance review, personnel
appraisal, performance evaluation employee evaluation and (perhaps the oldest of the terms
used) merit rating. In a formal sense; it is performance appraisal probably as old as mankind.
Nor performance appraisal is done in isolation. It is linked to job analysis. Job analysis sets
out requirements, which are translated into performance standards, which in turn from the
basis for performance appraisal.

Importance of Performance Appraisal:

Performance appraisal aids in the field of research in

HUMAN RESOURCE

MANAGEMENT. Theories in the personnel field are the outcome of efforts to find
out the cause and effect of relationship between the personnel and their performance.
The performance appraisal brings out the deficiency and shortcoming of the

employees. This gives an opportunity to the employees to have an insight on their

performance and take corrective measure to improve upon their performance.
A well organized and well administrated performance appraisal programmed may
help the management decide whether individual should be considered for promotion
because the system not only appraises the worth of the employee on the present job
but also evaluates his worth and potential for higher job.
Performance Appraisal helps the employee because he is anxious to know
about his performance on the job and his potential for higher job so that he can
motivate himself to the level of that position. Performance appraisal serves to
maintain good cardiac relationship in work group. It creates the psychological
pressure on employee to improve their performance.
A Performance Appraisal also referred to as a performance review, performance
evaluation, career development discussion, or employee appraisal is a method by
which

the jobperformance of

an employee is

documented

and

evaluated.

Performance Appraisals are a part of careerdevelopment and consist of regular

reviews of employee performance within organizations.A performance appraisal is a
systematic and periodic process that assesses an individual employee's job
performance and productivity in relation to certain pre-established criteria and
organizational objectives.[Other aspects of individual employees are considered as
well, suchas organizational citizenshipbehaviour, accomplishments, potential for
future improvement, strengths and weaknesses, etc.
To collect PA data, there are three main methods: objective production, personnel,
and judgmental evaluation. Judgmental evaluations are the most commonly used
with a large variety of evaluation methods. Historically, PA has been conducted
annually (long-cycle appraisals); however, many companies are moving towards
shorter cycles (every six months, every quarter), and some have been moving into
short-cycle

(weekly,

bi-weekly)

PA.

The interview could

function

as

"providing feedback to employees, counselling and developing employees, and

conveying and discussing compensation, job status, or disciplinary decisions". PA is
often included in performance management systems. PA helps the subordinate
answer two key questions: first, "What are your expectations of me?" second, "How
am I doing to meet your expectations?Performance management systems are

employed "to manage and align" all of an organization's resources in order to

achieve highest possible performance. "How performance is managed in an
organization determines to a large extent the success or failure of the organization.
Therefore, improving PA for everyone should be among the highest priorities of
contemporary organizations. Some applications of PA are compensation,
performance improvement, promotions, termination, test validation, and more.
While there are many potential benefits of PA, there are also some potential
drawbacks.

For

example,

PA can

help

facilitate

management-employee

communication; however, PA may result in legal issues if not executed appropriately,

as many employees tend to be unsatisfied with the PA process. PAs created in and
determined as useful in the United States are not necessarily able to be transferable
cross-culturally.
The process by which a manager or consultant. Examines and evaluates
an employee's work behaviour by comparing it with preset standards,
Documents the results of the comparison,
Uses the results to provide feedback to the employee to show
where improvements are needed and why?
Performance appraisals are employed to determine who needs what training, and
who will be promoted, demoted, retained, or fired.Performance Appraisals is the
assessment of individuals performance in a systematic way. It is a developmental
tool used for all round development of the employee and the organization. The
performance is measured against such factors as job knowledge, quality and quantity
of output, initiative, leadership abilities, supervision, dependability, co-operation,
judgment, versatility and health. Assessment should be confined to past as well as
potential performance also. The second definition is more focused on behaviours as
a part of assessment because behaviours do affect job results.Performance Appraisal
is the systematic evaluation of the performance of employees and to understand the
abilities of a person for further growth and development. Performance appraisal is
generally done in systematic ways which are as follows:
1.The supervisors measure the pay of employees and compare it with targets and
plans.
2.The supervisor analyses the factors behind work performances of employees.
3.The employers are in position to guide the employees for a better performance.
4.The performance appraisal is the process of assessing employee performance by
way of comparing present performance with already established standards which
have been already communicated to employees, subsequently providing feedback to
employees about their performance level for the purpose of improving their
performance as needed by the organisation.
5. As said above the very purpose of performance uprising is to know performance
of employee, subsequently to decide whether training is needed to particular
employee or to give promotion with additional pay hike.Performance Appraisal is

the tool for determining whether employee is to be promoted, demoted or sacked

(remove) in case of very poor performance and no scope for improvement.Every
corporate sector uses Performance Appraisal as a tool for knowing about the
employee and take decisions about particular employee. for the purpose of
performance appraisal of employees there are different methods under the category
of traditional methods and modern methods which are discussed in following
chapters.
What is Performance?
What is the term performance actually mean? Employees are performing well when
they are productive. Productivity implies both concern for effectiveness and
efficiency, effectiveness refers to goal accomplishment. However it does not speak
of the costs incurred in reaching the goal. That is where efficiency comes in.
Efficiency evaluates the ratio of inputs consumed to outputs achieved.The greater
the output for a given input, the greater the efficiency. It is not desirable to have
objective measures of productivity such as hard data on effectiveness, number of
units produced, or percent of crimes solved etc and hard data on efficiency (average
cost per unit or ratio of sales volume to number of calls made etc.).
In addition to productivity as measured in terms of effectiveness and efficiency,
performance also includes personnel data such as measures of accidents, turnover,
absences, and tardiness. That is a good employee is one who not only performs well
in terms of productivity but also minimizes problems for the organisation by being
to work on time, by not missing days, and by minimizing the number of workrelated accidents.
What is Appraisal?
Appraisals are judgments of the characteristics, traits and performance of others. On
the basis of these judgments we assess the worth or value of others and identify what
is good or bad. In industry performance appraisal is a systematic evaluation of
employees by supervisors. Employees also wish to know their position in the
organization. Appraisals are essential for making many administrative
decisions: selection, training, promotion, transfer, wage and salary administration
etc. Besides they aid in personnel research. Performance Appraisal thus is a
systematic and objective way of judging the relative worth of ability of an employee
in performing his task. Performance appraisal helps to identify those who are
performing their assigned tasks well and those who are not and the reasons for such
performance.
Definitions:
Performance appraisal has been defined by different scholars in various ways. Some
of the important definitions are as follows:
Dale S. Beach, "Performance appraisal is systematic evaluation of the individual
with respect to his or her performance on the job and his or her potential for

development".
Randall S. Schuler, "Performance appraisal is a formal, structured system of
measuring and evaluating an employees job, related behaviour and outcomes to
discover how and why the employee is presently perfuming on the job and how the
employee can perform more effectively in the future so that the employee,
organisation, and society all benefit."
Heyel, "It is the process of evaluating the performance and qualifications of the
employees in terms of the requirements of the job for which he is employed, for
purposes of administration including placement, selection for promotions, providing
financial rewards and other actions which require differential treatment among the
members of a group as distinguished from actions affecting all members equally."
Dale Yoder, ''Performance appraisal includes all formal procedures used to evaluated
personalities and contributions and potentials of group members in a working
organisation. It is a continuous process to secure information necessary for making
correct and objective decisions on employees."A performance appraisal is meant to
help employees realise their strengths and shortcomings and receive
acompensationaccordingly."Performance appraisal in any organisation will be done
at a specific period, like annually or half yearly or quarterly or maybe regularly. It all
depends upon the nature or size of the organisation, and sometimes necessity of the
managers decide the period of performance appraisal of their employees. Most of
organisations are insisting employee appraisal should be a continuous process and
should not be limited to a formal review once a year. The frequency of formal
appraisals will depend on the nature of the organization and on the objectives of the
system. For example, in a high technology organisation objectives may be changing
quickly so that formal appraisals may need to be carried out more than once a year.
In an environment which is less subject to change, annual appraisals may be
sufficient. Most employees receive a formal appraisal annually, although more
frequent appraisals are often needed for new employees, for longer serving staff who
have moved to new posts or for those who are below acceptable performance
standards.Adobe Systems, U.S based software company has abolished annual
performance appraisal system of its employees. Instead company management has
introduced regular feedback method for reviewing regular performance of its
employees rather than waiting till year ending for performance review. Company
managers feel regular feedback will improve the performance of employees as they
come to know their regular performance, further managers are considering these
regular feedback in the matter of salary hikes and promotions
Performance Appraisals is the assessment of individuals performance in a systematic way. It
is a developmental tool used for all round development of the employee and the organization.

The performance is measured against such factors as job knowledge, quality and quantity of
output, initiative, leadership abilities, supervision, dependability, co-operation, judgment,
versatility and health. Assessment should be confined to past as well as potential performance
also. The second definition is more focused on behaviours as a part of assessment because
behaviours do accept the job result.
Theoretical concept of Performance Appraisal.
Performance appraisal is a nine step process:

At the first stage performance standards are established based on job description and
job specification.The standards 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 observation, interview, records and

reports.
The fourth stage is finding out the influence of various internal and external factors
on actual performance. The influence of these factors may be either inducing or
hindering the employee performance. The measured performance may be adjusted
according to the influence of external and internal factors. The performance derived at

this stage may be taken as actual performance.

The fifth stage is comparing the actual performance with that of other employee and
previous performance of the employee and others. This gives an idea where the
employee stands. If performance of the all the employee is ranked either too high or

too low, there may be something wrong with the standards and job analysis.
The sixth stage is comparing the actual performance with the standards and finding
out deviations. Deviations may be positive or negative. If employees performance is
more than the standards, it is positive deviation and vice verse are negative deviations

and vice verse is negative deviation.

The seventh stage is communicating, the actual performance of the employee and
other employees doing the same jobs and discuss with him about the reasons for
positive or negative deviations from the pre-set 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 follow up of performance appraisal report. This stage includes
guiding, counselling, coaching and directing the employee or making arrangements
for training and development of the employee in order to ensure improved
performance. If the actual performance is very poor and beyond the scope of
improvement it may be necessary to take steps for demotions, retrenchment or any
other suitable measure.
Methods of Performance Appraisal:
With the evolution and development of appraisal system, a number of methods or
techniques of performance appraisal have been developed. The important among them
are presented.

Trait methods:
Trait method to performance appraisal measures the extent to which employees possess traits
or characteristics like dependability, creativity, initiative, dynamism, ability to motivate and
leadership.

Trait method are designed based on job descriptions and to motivate and

leadership. Trait methods are designed based on job description and job specification.
Graphic rating scales:
Graphic rating scales compare individual performance to an absolute standard. In this
method, judgments about performance are recorded on a scale. This is the oldest and widely
used technique; this method is also known as linear rating scale or simple rating scale. The
appraisers are supplied with printed forms one for each employee.Rating scales are of two
types, via, continuous rating scale and discontinuous rating scale. In continuous orders like 0,
1, 2, 3, 4, 5 and in discontinuous scale the appraisers assigns the points to each degree.
Performance regarding each character is known by the points given by the ratter.
One reason for the popularity of the rating scale is its simplicity, which permits many
employees to be quickly evaluated. Another limitation is that the descriptive words often used
in such scales may have different meaning to different ratters.
Ranking method:
Under this method the employees are ranked from best to worst on same characteristics. The
ratter first finds the employee with the highest performance and the employees with the

lowest performance and the employee with the lowest performance in that particular job
category and rates the former as the best and the latter as the poorest. Then the ratter selects
the next highest and next lowest and so on until he rates all the employees in that group.
Ranking can be relatively easy and inexpensive, but its reliability and validity may be open to
doubt. It may be affected by rather bias or varying standards. One important limitation of
ranking method is that the size of the difference individual is not well defined. For instance,
there may be little difference in performance between individuals ranked second and third,
but a big difference between those ranked third and fourth.
Paired comparison method:
This method is relatively simple, under this method; the appraisers rank the employees by
comparing one employee with all other employees in the group, one at a time. This method
results in each employee being given a positive comparison total and a certain percentage of
the total positive evaluation paired comparison does not force distribution of employees in
each development. For instance, if a department has two outstanding employees and six
average employees and paired comparison is correctly utilized, then those two employees
will get a much higher percentage of positive comparison than the other six. It could be
employed fairly where the number of employee is less. The number of comparisons required
=N (N-1)/2. The technique may be time consuming.
Forced distribution method:
The ratter may rate his employees at the higher or lower end of the scale under the earlier
methods. Forced distribution method is developed to prevent the ratter from rating too high or
too low.Under this method, the rather after assigning the points to the performance of each
employee asks to distribute his rates in a pattern to confirm to normal frequency distribution.
This method eliminates central ranked categories but not ranked within the categories. This
method is based on the rather questionable assumption that all groups of employees will have
the same distribution of excellent, average and poor performers. Difficulty can also arise
when the ratter must explain to the employee why he was placed in one grouping and others
were placed in higher groupings.
Checklist method:

The checklist is a simple rating technique. In which the supervisor is given a list of statement
or words and asked to check statement representing the characteristics and performance of
each employee. There are three types of checklist method.
Simple checklist method:
The checklist consists of large number of statements concerning on employee behaviour.The
rather checks to indicate if the behaviour of an employee is positive or negative to each
statement. Employee performance is rated on the basis of number of positive checks. The
negative checks are not considered in this method.
Weighted checklist method:
Under this method involves weighting different items in the checklist, having a series of
statements about an individual, to indicate that some are more important than others.
Weighted performance score is compared with the overall assessment standards in order to
find out the overall performance of the employee. This method is evaluative as well as
developmental; it has the basic problem of the evaluator not knowing the items which
contribute mostly of successful performance.
Forced choice method:
Under this method, a large number of statements in groups are prepared. Each group consists
of four descriptive and two statements concerning employee behaviour.Two statements are
most descriptive and two statements are least descriptive. It is difficult to construct and
validate the statement under this method, especially for relatively small organizations.
Essay form appraisal:
This method requires the manager to write a short essay describing each employees
performance during the rating period. This format emphasizes evaluation of overall
performance, based on strengths/weaknesses of employee performance, rather than specific
job dimensions. By asking supervisors to enumerate specific examples of employee
behaviour, the essay technique minimizes supervisory bias and halo effect. The time involved
in writing separate essays about each employee can be formidable. Essays are not amenable
for evaluation and analysis, fifty essays describing different employee performance cannot be
tied to merit increases and promotion possibilities because there is no common standard.

Another inherent limitation of this method is that the evaluators may have unequal skills in
writing the essays.
Group appraisal:
Under this method, an employee is appraised by a group of appraisers. This group consists of
the immediate supervisor of the employee, to other supervisors who have close contact with
the employees work, manager or head of department and consultants. Then the group
appraisers the performance of the employee, compares the actual performance with standards,
find out the deviations, discusses the reason therefore, suggests way for improvements of
performance, prepare action plans, studies the need for change in the job analysis
andStandards and recommends change, if necessary. This method is widely used for
promotion and demotion.
Confidential reports:
Under this method, superior appraises the performance of his subordinate based on his
observations, judgments and intuitions. The superior keeps his judgments and report
confidentially. Superior writes the report about his subordinates strengths, weaknesses,
intelligence, attitude to work, sincerity, commitment, punctuality, attendance, conduct,
character, friendliness etc.Through confidential report is a traditional method, most of the
public sector organization still follows this method in appraising the employees performance.
This method suffers from a number of limitations.
Behavioural methods:
While Trait method measures various characteristics, behavioural method measures the
employee behavioural skills on a continuum. These methods describe which behavioural
needs to be exhibited and suggest the employees to develop such behaviours.
Behavioural checklist method:
A checklist is designed with the list of statements that describes the behaviour essential for
employee performance. The appraiser checks whether appraise possesses them or not
employee performance is rated based on the behavioural skills that the employee possess to
the total statements.
Critical incident method:

Employees are rated discontinuously that is once in a year or six months under these earlier
methods. The performance rated may not reflect real and overall performance as the ratter is
serious about just two or three weeks before the appraisal. Under this method, the supervisor
continuously records the critical incidents of the employee performance or behaviour relating
to characteristics in a specially designed note book. The supervisor rates the performance of
his subordinates on the basis of notes taken by him, since the critical incident method does
not necessarily have to be separate rating system, it can be fruitfully employed as
documentation of the reasons why an employee was rated in a certain way.
Behaviourally anchored rating scales:
The behaviourally anchored rating scale method combines elements of the traditional rating
scales and critical incident method.Using BARS, job behaviours from critical incidents
effective and ineffective behaviours are described more objectively. The method employs
individual who are familiar with a particular job to identify its major components. They then
rank and validate specific behaviour for each of the components.
Step 1: Collect critical incidents:
People with knowledge of the job are to be probed, such as job holders and supervisors,
describe specific example of effective and ineffective behaviour related to job performance.
Step 2: Identify performance dimensions:
The assigned tasks of developing the instrument cluster the incidents into a small set of key
performance dimensions.Generally, between five and ten dimensions accounts for most of the
performance. Examples of performance dimensions include technical competence, relations
with customer handling and meeting day to day deadlines.
Step 3: Reclassification of incidents:
Another group of participations who are knowledgeable about the job is instructed to
retranslate the critical incident generated previously. They are given the definition of job
dimensions and told to assign each critical incident to the dimension that it best describes. At
this stage incident for which there is not 75% agreements are discarded as being too
subjective.
Step 4: Assigning scale values to the incidents:

Each incident is then rated on a one to nine scale with respect to how well it represents
performance on the appropriate dimension. A rating of one represents ineffective
performance; the top scale value indicates very effective performance.
Step 5: Producing the final instrument:
About six or seven incidents for each performance dimension all having met both the
retranslation and standard deviation criteria will be used as behavioural anchors. The final
BARS instrument consists of a series of vertical scales anchored by the final incidents. Each
incident is positioned on the scale according to its mean value.
Behaviour observation scales:
The appraiser under this method, measure how frequency each of the behaviour has been
observed. Appraiser plays the role of observer rather than a judge and provides the feedback
to appraise continuously. Satyam computers, Infosys, Dr.Reddys Lab, AT& T, and DaytonHudson follow this method over BARS as this method.

Maintains objectivity.
Differentiates good performers from poor performers.
Provides feedback.
Identify training needs.

Assessment centre:
This method of appraising was first applied in the German army in 1930. Later business and
industrial houses started using this method. This is not a technique of performance appraisal
by itself. In fact, it is a system or organization, where assessment of several individual is done
by various techniques. These techniques include in-basket exercises, role playing, and case
studies, work groups, computer simulations etc.
Psychological appraisal:
These appraisals are more directed to assess employees potential for future performance
rather than the past one it is done in the form of in-depth interviews, psychological tests, and
discussion with supervisors and review of other evaluations. It is more focused on employees
emotional, intellectual, and motivational and other personal characteristics affecting
employee performance. This approach is slow and costly and may be useful for bright young
members who may have considerable potential.

Result method:
Organization of the contemporary periods evaluates employee performance based on
accomplishments they achieve rather than based on the behavioural factors and traits.
Employee accomplishments include sales turnover, number of units produced, and number of
customers served, number of complaints settled and the like. The advantage of result methods
include:

Less subjectivity.
Less open to bias.
Assign clear responding to employees.
Freedom to the employees in using methods.
Empowering the employees.

Productivity measures:
Under the productivity measures of performance appraisal, employees are appraised based on
the ratio of output they turned out to the input they used.
For example: sale to employee salary and benefits, numb number of clients served per day
etc. these measures is not free from limitations as measurements of all kinds of output as well
as all kinds of input would be difficult.

Balanced scorecard:
The balanced scorecard brings the linkages among financial, customer, processes and
learning. Learning and people management contribute to the enhancement of internal
processes. Internal processes are critical for enhancing customer satisfaction and loyalty.
Customer services leads to customer value creation, which drives financial performance and
profitability.
The balanced scorecard can be used to appraise employee performance. The following
recommendation ensures the successful application of balanced scorecard to performance
management.

Translate the strategy into a scorecard of clear objectives.

Attach measure to each objective in order to know the details of achievement of

objectives.
Cascade scorecard to the lowest level employees in order to enable all employee to
understand how their jobs and duties are aligned with higher level goals and
objectives.

Provide performance feedback based on measures employees must be provided with

feedback on how they are accountable for achieving goals, to what extent they
achieve them and the areas and reasons for failure to achieve the unaccomplished

portions.
Empower employees for performance improvements.

Human resource accounting:

Human resource accounting deals with cost of and continuous of human resource to the
organization. Cost of employees includes cost of man power planning, recruitment, selection,
induction, placement, training, development, wage and benefits etc. employees contribution
is the money value of employee service which can be measured by labor productivity or
value added by human resources.Cost of human resources may be taken as standard.
Employee performance can be measured in terms of employees contribution to the
organization. Employee performance can be taken as positive when contribution is more than
the cost and performance can be viewed as negative if cost is more than contribution. Positive
performance can be measured. Similarly, negative performance can be calculated in terms of
employee. This performance can be ranked to zero level.
Management by objectives:
Management by objectives was advanced by Peter Ferdinand Drucker way back in 1954, it
was described only recently as the large range in performance appraisal.
Management by objectives is a process whereby the superior and subordinate manager of an
organization jointly identifies its common goals, define each individual major areas of
responsibility in terms of results expected of him, and use these measures of guides for
operating the unit and assessing the contribution of its members.
Generally MBO process is undertaken along with the following lines:

The subordinate and superior jointly determine goals to be accomplished during the
appraisal period and what level of performance is necessary for the subordinate to

satisfactorily achieve specific goals.

During the appraisal period the superior and subordinate update and alter goals as

necessary due to changes in business environment.

Both the subordinate jointly discuss whether the subordinate achieved the goals or
not.

360 DEGREEPERFORMANCE APPRAISALS.

The appraisal may be any person who has through knowledge about the job
contents, contents to be appraised, standards of contents and who observe the employee while
performing the job the appraiser should be capable of determining what is more important
and what is relatively less important. He should prepare reports and make judgments without
bias. Typical appraisers are: supervisor, peers, subordinates, employees themselves, users of
service and consultants. Performance appraisal by all these parties is called 360performance appraisal
When to appraise?
In formal appraisals are conducted whenever the supervisor or personal managers feel it
necessary. However, systematic appraisals are conducted on a regular basis, say for example,
every six months or annually.

Why appraisal techniques prove failure?

Performance appraisal techniques have often failed to give a correct assessment of the
employee according to Zavala, the causes of such failure are:

The superior play dual and conflicting role of the both judge and the helper.
Too many objectives often cause confusion.
The superior help that subordinate appraisal is no rewarding,
A considerable time gap exists between two appraisal programs.
The skill required for daily administration and employee development are in conflict.
Poor communication keep employee in the dark what is expected of them.
There is difference of opinion between a superior and subordinate in regard to the

latters performance.
Feedback on appraisal is generally unpleasant for both superior and subordinate.

How appraisal must be made successfull?

The rather must be thoroughly well-versed in the philosophy and a nature of raging system.
Factors and factor scales must be thoroughly defined analyzed and discussed.
The success of an appraisal program depends upon:

The existence of an atmosphere of confidence and trust so that both supervisor and
employee may discuss matters frankly and offers suggestions which may be beneficial

for the organization and for an improvement of the employee.

The supervisor must very thoroughly evaluate the employee performance so that he is

capable of meeting challenges about his rating of his subordinate.

The superior should try to analyze the strength and weakness of an employee and

advise him on correcting the weakness.

The appraisal program should be less time consuming and less costly. At the same
time it should bring the maximum benefits.

Advantages:

There will be an objective analysis of traits of both the superior and subordinates.
There will be a chance for the subordinates to express his views even after

performance appraisal.
An employee shall express his emotional need and his value system which is

considered taboo till today.

It overcomes the communication barrier.
It will remove the inherent weakness of the appraisal system.

Disadvantages:

Failure of the superior in conducting performance appraisal and post performance

appraisal interviews.
Most part of appraisal is based on subjectivity.
Less reliability and validity of the performance appraisal techniques.
Negative rating affects interpersonal relations and industrial relations system.
Feedback and post appraisal interviews may have a setback on production.
Management emphasis on punishment rather than development of an employee in
performance appraisal.

Relation between appraisal rates and performance after promotions are not significant.

Some superiors completed appraisal reports within in few minutes.

Chapter-2

Approaches to study:

Specially designed OJT-JT training course based on skills required.

Evaluate the effectiveness of the training provided to them.
Follow-up training courses in case employees performance found not OK.

Need to study:
Performance Management is needed in order to increase the potentiality of the employee. In
the absence of effective appraisal system the effectiveness of the organization and its
employees would be at stake. The need for the study is that the effectiveness of the
performance management system is to be studied in order to make changes if any in order to
have a component workforce to meet the challenges of the business.
Objectives of the Study:
The study is used as a platform for analyzing the real life problem Honda is currently
facing and the way the organization is dealing with the problem. The current Performance
Appraisal system will be analyzed vis--vis various conceptual frameworks learnt during
the course. The existing perceptions of the employees vis--vis the current Performance
Appraisal system are studied, and the expectations of the employees are solicited. The
internal and external environment of Honda will be analyzed, along with the estimation of
the current maturity level of the employees vis--vis the existing Performance Appraisal
system.A new system will be designed and proposed based on the desired perceptions of
the employee, the organizational culture, the maturity level of the organization and the
effectiveness in solving the existing problem Honda is currently facing.

To Study about the effectiveness of the Performance Management system followed

at BSNL to monitor and enhance the performance of its employees.

To find out discrepancies if any in the system.

To suggest changes to the present Performance Management system in order to

improve its effectiveness.

Inability to arrive at a mutually acceptable position during the interviews.

Similar performance appraisal forms across hierarchy resulting in loss of

seriousness and inaccurate reporting.

Too much confidentiality ensures loss of purpose.

An overall organization wide lack of seriousness about the performance

appraisal process.

Methodology of the study:

Methodology is a systematic procedure of collecting information in order to analyze and
verify a phenomenon. The collection of information is done with two principle sources.

Primary data:
Primary data is the information collected directly from the employees. In this study data is
generated through interviews with concerned officer and staff either individually and
collectively. Some information was verified and supplemented through personal observation.
The primary data is collected from staff and managerial personnel by administering the
questionnaire.

Secondary data:
The secondary data was collected from published and unpublished pamplets. The secondary
information has been obtained from the record and reports available at BSNL. The literature
on the subject has gather from journals, periodicals, books and reports available.

Research design:
Research design is the planned structure and planned process of investigation and is to obtain
the required answers to the research questions and control variance

Data collection methods:

The main source of data collection is to study on performance appraisal which is done
through questionnaire
The grading methods used are as follows:

A-strongly agree.
B-agree.
C-disagree.
Strongly disagree.

Sample design:
The size of the sample is 100.

Data tabulation:
The present study on performance appraisal shall be tabulated by using tallies & percentage
method.

Table 1: Methodology used

Research Tool

Questionnaire
(No of respondents 50)

Performance Evaluation forms

Online databases

Purpose
Obtaining information about the current PA
system in Honda such as
KRAs for employees
Organization Culture
Performance planning
Understanding employee perspective of the
appraisal process
Identifying problems with the existing A
system
Obtaining information such as
Criteria for Evaluation
Performance Rating mechanisms in
place
Background information of the
PA system
Company in general

Scope of Study:
The scope of the study is confined to the employees of BSNL, have been performing their
duties as well as the employee are having any requirements and also they are reaching their
targets within the specific time ,if they have been success in the their work then what are the
benefits and what type appraisal they should get on success of their duties is main scope to
study.
LIMITATIONS:

The Study does not cover all the HEADs of HMSI.

The Study of perfect may limit to the employees individual Performance, but

the team Performance may not be measured.

The study is generalized and the respondents are chosen from only one HEAD

of HMSI.
Time factor is another limitation.
Inaccurate setting of expectations and goals during the objective setting

exercise.
Too lengthy and complex form.
The appraisal is to some extent highly subjective with no objective metrics
defined.

Expected contribution:
An exceptional contributor is one whoIs passionate about the companys objectives and
goals.Has set new standards of excellence.Has gone beyond the defined role to assimilate
latest developments and exceptional achievements for the company.Demonstrates
exceptional/break through accomplishments in all major areas of responsibility.Demonstrates
excellent people skills.Performs at much higher level than his peer group.Is a role model and
easily recognized by others outside the function as a star.
Contributor(C):
A contributor is one who has met acceptable standards of performance.Has exhibited good
understanding in the area of operation.Considered a valuable member.Gets along well with
others.Has a potential for achieving higher standards of performance if improves upon few an
areas.

Low Contributor (LC) :

A Low contributor is one who/whose Performance is poor and far below expectation.Has
shown no understanding or interest in the role.Has not focused on the objectives.Has a
negative attitude towards performance is generally rigid and inflexible.

Chapter-3
Company Profile:

Synopsis of BSNL:
Particulars of Organization: Incorporated on 15.9.2000, vide Registration No. 55107739, dated the 15th September, 2000 and became entitled to commence business
with effect from 19th September, 2000.

Date of incorporation: The Company (BSNL) took over the .business of providing
telecom services and network management throughout the country except the metro
cities of Delhi and Mumbai of the erstwhile service providing departments of the
Govt. of India, i.e., the Departments of Telecom Services and Telecom Operations
w.e.f. 1.10.2000 pursuant to an MU signed between the BSNL and the Govt. of India.
Type of Company:

Government Company under Section 617 of the Companies Act, 1956.

Services:

Fixed line and mobile telephony, Internet services, digital television, IPTV.
Administrative Ministry:

Govt. of India, Ministry of Communication and Information Technology, Department

of Telecommunications.
Key people:

AnupamShrivastava (Chairman & MD).

Details of Disinvestments:

The entire share capital of the Company is held by the Govt. of India.
Shareholding pattern:

Government of India is holding 100% of the share capital of the Company.

Listing with Stock Exchanges:

Not applicable, as the BSNL is an unlisted company.

Share Capital:

Authorized Capital Rs.17,500 crores, divided into 1,000,00, 00,000[One Thousand

Crores] Equity Shares of Rs.10/- each; and 750,00,00,000 [Seven Hundred and Fifty
Crores] Preference Shares of Rs.10/- each. Paid Up Share Capital - Rs.5,000/- crores
of Equity Shares and Rs.7,500/- crores of Preference Share Capital.

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
Wire line, CDMA mobile, GSM mobile, Internet, Broadband, Carrier service, MPLS-

VPN, VSAT, VoIP, IN Services, FTTH, etc.

BSNL is numerouno of India in all services in its license area.
The company offers wide ranging & most transparent tariff schemes designed to suit

every customer.
BSNL is India's oldest communication service provider and had a customer base

of93.29 million as of June 2015.

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 are8.09 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.

BSNL Revenue To Cross Rs 30,000 Crores in FY2015-16.

The country's second largest telecom operator by overall subscriber base, state-owned
BSNL, which has seen massive erosion in net profits and is surviving only on
interests from its cash reserves, is putting up a four-pronged revival plan based on the
recommendations of Boston Consulting Group.
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.

MISSION:
Be the leading telecom service provider in India with global presence:

Generating value for all stakeholders - employees, shareholders, vendors & business
associates.

Maximizing return on existing assets with sustained focus on profitability.

Becoming the most trusted, preferred and admired telecom brand.

To explore International markets for Global presence.

Creating a customer focused organization with excellence in customer care,

sales&marketing:

Developing a marketing and sales culture that is responsive to customer needs mer
care, sales& marketing

Excellence in customer service-friendly, reliable, time bound, convenient and

courteous service.

Leveraging technology to provide affordable and innovative products/ services across

customer segments:

Offering differentiated products/services tailored to different service segments

Providing reliable telecom services that are value for money

Providing a conducive work environment with strong focus on performance:

Attracting talent and keeping them motivated.

Enhancing employees skills and utilizing them effectively.

Encouraging and rewarding individual and team/group performance.

Establishing efficient business processes enabled by IT:

Changing policies and processes to enable transparent, quick and efficient decision
making

Building effective IT systems and tools.

OBJECTIVES:

To be the Leading Telecom Services provider by achieving higher rate of growth so as

to become a profitable enterprise.

To provide quality and reliable fixed telecom service to our customer and thereby
increase customers confidence.

To provide customer friendly mobile telephone service of high quality and play a
leading role as GSM operator in its area of operation.
Strategy for:

Rightsizing the manpower

Providing greater customer satisfaction.

Contribute towards:

Broadband customers base of 20 Million in India by the end of 2011-12 as per

broadband policy 2004.

Providing telephone connections in villages as per Government policy.

To leverage the existing infrastructure of BSNL for facilitating implementation of other

government programs and initiatives particularly in the rural areas.

SWOT Analysis
Strengths:

Backed by Government of India:

It was incorporated on 15 September 2000 and took over the business of
telecom services and network management from the erstwhile Central
Government Departments of Telecom Services (DTS) and Telecom Operations
(DTO), with effect from 1 October 2000 in an ongoing concern basis.
Extensive infrastructure in remote areas:

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 customers confidence.
PAN India-reach:

You name the place & BSNL is there. 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, and 197
Satellite Stations.
Huge Optical-Fibre infrastructure:

Fibre-based cable networks act as a backbone to transmit data on wireless

networks. BSNL has 6,86,644RKm. of OFC, 50,430 RKm. of microwave
network connecting 623 districts, 7330 cities/towns & 5.8 lakhs villages.

Weaknesses:

Working culture of government Institution:

Despite having stiff competition in telecom sector making private players to
design their strategy cautiously BSNL is still running on Bureaucratic type of
setup.
Network capabilities:

Although BSNL have 62000 tower & wireless networks stretched to 6,86,644
RKm. of OFC, 50,430 RKm. of microwave network connecting 623 districts,
7330 cities/towns & 5.8 lakhs villages, they are not able to optimize the network
capabilities.

Poor Service Image:

With the advent of technologies & new players foraying in the telecom sector
serviceability & CRM is important aspect for the growth of the business but
BSNL has maintained its poor service image since its incorporation.

Opportunities:

Strategic Partnership:
Partnering with the smartphone companies is going to be smart strategy as far as
MNP (mobile number portability (India)) is concerned which will ensure fixed
cash flows in the future.
Partnering with other telecoms:

Partnering with other telecoms to revamp their loss making, poorly managed,
extensively stretched infrastructure will help them in turning around the company.
Redeployment of unutilized capacities, Integrating IT infrastructure should be
considered.
Customer Retention:

Customer retention through a combination of loyalty schemes, better Tariff,

service standards, low call drops better network availability & reach will result
into low switchers & low acquisition cost.
Improving upon Intangible capabilities:

Company is well placed in tangible capabilities like resources, infrastructure but

they need to work on intangible capabilities like skill & motivation, Knowledge &
Aging workforce.

Threats:

Government Regulatory Framework:

With the auction of spectrum & change in the policies on a regular basis, there is
a lot of instability in the telecom industry.

Competition:

Price war in the home market, technologically advanced private players and
declining margins is adversely affecting the overall business of the co..
MNP (Mobile number portability):

MNP gives the customer independence to change the service provider while
retaining the number and the number and due to high call drops, network issue &
worst CRM will result into slump in subscriber base in the next fiscal with PAN
India MNP implementation from May 3rd 2015.

Improvement being undertaken:

BSNL is introducing new value added services to existing customer as well as

potential customers.

Company is adopting effective marketing strategies to gain marketing leadership.

BSNL is forwarding steps in a variety of schemes for both subscriber commercial

and residential.

Technological up gradation of network.

Better customer care customer delight is the objective.

Projects by BSNL for Customer Relation Marketing:

Project Shikhar:
The transformational exercise has been named Project Shikhar and will attempt to
arrest the company's financial decline, and restructure the business to make it
profitable.

Project Udaan:
Create discrete segments of customers based on their usage profile & understand the
key requirements & issues.
Project Dosti:

The overall objective of Project Dosti is to reduce decline in BSNLs PCO business
by reducing churn of existing PCO operators and innovating of PCO business model
to generate new revenue sources both for BSNL and PCO owner.

Project Vijay:
Expand reach ensure availability of BSNL products at more than 95% of telecom
retail outlets .Capture significant share 25-30% of retailer's counter sales increase
extraction.

Telecom Industry

Overview of Telecom in Global:

The telecommunications industry has changed radically in the past 10 years as data-

hungry customers with smart devices consume ever more bandwidth.

Operator performance varies significantly by region.
North American and Asian telecoms have outperformed other regions, benefiting from

increased scale and strong secular growth opportunities, respectively.

Many of the operators in the emerging markets will focus primarily on mobile

infrastructure with lower priced smart phones becoming a dominant trend.

Mobile broadband infrastructure is becoming increasingly important in the emerging
markets of Middle East, Asia, Africa and Latin America, as the large populations

place more and more demand on existing infrastructure.

This report provides a summary of key trends for the global telecoms sector as well as
an overview of developments at a regional level.

This valuable report also includes recent key statistics for the overall global telecoms
industry as well as statistics for the mobile, mobile broadband, Internet, satellite and

fixed broadband sectors.

It also includes a ranking of the top telcos (2014) as well as global telecoms and
mobile CAPEX and revenue.

History of Telecom sector:

The history of telecommunication began with the use of smoke signals and drums in

Africa, the Americas and parts of Asia.

In the 1790s, the first fixed semaphore systems emerged in Europe; however it was

not until the 1830s that electrical telecommunication systems started to appear.
This article details the history of telecommunication and the individuals who helped

make telecommunication systems what they are today.

The history of telecommunication is an important part of the larger history of
communication.

Early Era:

Early telecommunications included smoke signals and drums.

Talking drums were used by natives in Africa, New Guinea and South America, and

smoke signals in North America and China.

Contrary to what one might think, these systems were often used to do more than
merely announce the presence of a camp.

Telegraph System:

Telecommunications began with the successful innovation of Samuel Morse's

telegraph system in 1844.

For three years, the U.S. Post Office ran the pioneering Washington to Baltimore line.
By that time other private telegraph companies had developed (the first connected
New York and Philadelphia) and were rapidly growing.

Birth of Telephone:

Success of telegraph industry and rising electrical manufacturing businesses formed

the context for the telephone.

The electric telephone was invented in the 1870s, based on earlier work with

harmonic (multi-signal) telegraphs.

The first commercial telephone services were set up in 1878 and 1879 on both sides
of the Atlantic in the cities of New Haven and London.
Satellite Communication:

Development of satellite communication was first hinted at in a 1945 article by Arthur

C. Clarke in which he postulated a geostationary orbit 22,300 miles high that would
keep a satellite above the same part of Earth.

Digital Technology:

Digital technology first appeared in American telecommunications with AT&T's

introduction of its T1 Carrier System in 1962.

A T1 line offered far more capacity and a cleaner (less noisy) signal. Soon digital
telephone switches appeared, allowing for more flexible network design and
operation. But the most sweeping change came with the installation of fiber-optic
cables to carry voice, data, and video signals. Your online source for free professional
tutorials.

The Internet:

On September 11, 1940, George Stibitz was able to transmit problems using teletype
to his Complex Number Calculator in New York and receive the computed results
back at Dartmouth College in New Hampshire.

This configuration of a centralized computer or mainframe with remote dumb

terminals remained popular throughout the 1950s.

However it was not until the 1960s that researchers started to investigate packet
switching a technology that would allow chunks of data to be sent to different

computers without first passing through a centralized mainframe.

A four-node network emerged on December 5, 1969 between the University of
California, Los Angeles, the Stanford Research Institute, the University of Utah and

the University of California, Santa Barbara.

This network would become ARPANET, which by 1981 would consist of 213 nodes.
In June 1973, the first non-US node was added to the network belonging to Norway's
NORSAR project. This was shortly followed by a node in London.

Latest developments:
Telecommunications: A sector in the midst of transformation:

The telecommunications industry has changed radically in the past 10 years as data-

hungry customers with smart devices consume ever more bandwidth.

Over this period, operators have expanded their service portfolios and overhauled
their price plans to meet explosive demand, while rising capital expenditures

underline the ongoing imperatives to upgrade network capabilities.

Operator performance varies significantly by region.
North American and Asian telcos have outperformed other regions, benefiting from
increased scale and strong secular growth opportunities, respectively. Meanwhile,
European operator share performance has improved on anticipation of consolidation,
while Latin American telcos have felt the brunt of a worsening macroeconomic

outlook.
While many players are diversifying their revenue streams, ensuring that new services

deliver healthy margins remains challenging.

All entities in the digital ecosystem are now seeking new points of differentiation in

order to maximize their share of customer spend.

While operators still enjoy a majority of ecosystem revenues, OTTs have grown their
share to 10% in the space of a few years, and competition in retail and distribution is
becoming more intense.

Current state, future state: survey results in focus:

More than three-quarters of respondents cite disruptive competition as the leading
industry challenge, with all respondents recognizing the potential of OTTs to reshape

demand scenarios.
Regulatory uncertainty is the number two perceived challenge, with spectrum release

frameworks and data privacy legislation seen as particular pain points.

Customer experience management dominates the telco strategic agenda 68% of

senior industry executives cite it as their number one strategic priority.

As operators look to boost loyalty and spend, higher levels of customer service allied

to greater service personalization are seen as critical levers.

Cost control and network upgrades also rank highly as strategic priorities, and the
majority of respondents see their organizations capex rising in 2015, contradicting

industry forecasts of falling capex in years to come.

Improved network quality is also seen as the third-most important driver of greater

customer centricity.
Business efficiencies and organizational agility are second and fourth, respectively, on
industry leaders ranking of strategic priorities, while a lack of organizational agility is

viewed as a leading industry challenge by almost half of the study participants.

In this light, operating model refinements are mission-critical, with talent acquisition,
shorter time-to-market and big data analytics initiatives all playing a mutually
supportive role.

New horizons: navigating the road to 2020

The telecommunications industry and related verticals will continue to evolve

dynamically over the next five years.

Boundaries will blur among product categories as a range of industry actors shape

customer demand scenarios.

Partnerships will play an ever more important role in driving innovation.
In this light, operators must reconsider areas where they can take more discrete value
chain positions as business-to business (B2B) approaches become a key facet of value

creation
On the supply side, operators must also heed a more diverse set of policies touching
the industry.

At a national level, there will be a greater focus on holistic digital agendas that
incentivize the entire value chain; yet, the risk of fragmentation at a global level
remains very real, with spectrum release frameworks and net neutrality rules the scene
of ongoing consensus building.

Meanwhile, network upgrade road maps will require careful deliberation.

New technologies can help maximize the performance of existing fixed and mobile
infrastructure, but operators must consider how best to combine different network
standards to support the Internet of things.

At the same time, the current focus on in-market consolidation is likely to give way to
a new round of cross-border M&A, with operators also increasingly interested in
acquiring new vertical-specific capabilities.

As a more complex sector landscape emerges, operators must engage in a delicate

balancing act.

On the one hand, more selective business models will allow more targeted strategies
backed by focused investments.

On the other hand, preparing for a range of demand scenarios will be vital as customer
needs become more nuanced in a digital world.

Greater agility will be vital for all as operators grapple with the demands of digital
natives.

Organizations that can clearly connect their network and service capabilities with
changing customer needs stand to gain the most, while other industries offer
learnings on how to differentiate successfully while, at the same time, deepening
customer trust levels.

Telecommunications: A sector in transformation:

A decade of disruption and diversification:

The telecommunications industry has changed beyond recognition in the last 10 years,
with customer needs and competitive landscapes shifting in ways that few could have

predicted.
During this time, weve seen capex trending inexorably upwards at the same rate as
global industry revenues (at 5% compound annual growth rate (CAGR) in the period

2005-151), with spectrum costs adding to the investment burden facing operators.
Meanwhile, there have been seismic changes in consumption trends.
With smartphone usage surging over the same period, mobile has become firmly
established as the leading computing platform.
Customers are increasingly focused on data. Media and video was less than 10%
of traffic in 2010; now it is almost 50% in 2015.

Fast-changing consumption trends:

Voice usage has declined and mobile is now the leading computing platform.
In order to meet high levels of demand, operators have been investing in faster

network capabilities, while also diversifying their service portfolios.

Cross-selling has become increasingly important as a route to enhanced customer
stickiness: by the end of 2013, 14% of global broadband subscribers also took an

Internet Protocol television (IPTV) service from their broadband providers.

At the same time, many markets have shifted to tiered usagebased pricing for mobile
data, a better monetization model than the all-you-can-eat price plans that preceded
them.

Similarly, more innovative data-sharing models have seen operators increasingly

tailor their individual packages for the needs of households.

Telecommunications Industry Statistics and Market Size Overview:

Numbe
r

U.S. Telecommunications Spending** (ICT)1

1.4

Worldwide Telecommunications Spending** (ICT)

5.6

Sourc
Unit
Tril.
US$

Tril.
US$

Year

2015

TIA

2015

TIA

Landline

Total Wireline Retail Local Telephone Service Connections, 133.2

Mil.

Dec-13 FCC

Bil.

2015

U.S.

Global Landline Subscriptions**

1.06

ITU

Indian Telecom Industry:

India is the worlds fastest growing telecom industry in the world in terms of number
of wireless connections after China, with 811.59 million mobile phone subscribers.

According to the world telecommunications industry, India will have 1.200 billion
mobile subscribers by 2013.

Furthermore, projections by several leading global consultancies indicate that the total
number of subscribers in India will exceed the total subscriber count in the China by
2013.

History of Indian Telecommunication:

So how Telecommunication started in India?

Well Postal means of communication was the only mean communication until the
year 1850. In 1850 experimental electric telegraph started for first time in India
between Calcutta (Kolkata) and Diamond Harbor (southern suburbs of Kolkata, on the

banks of the Hooghly River).

In 1851, it was opened for the use of the British East India Company. Subsequently
construction of telegraph started through out India. A separate department was opened
to the public in 1854. Dr.William OShaughnessy, who pioneered the telegraph and
telephone in India, belonged to the Public Works Department, and worked towards the

development of telecom. Calcutta or the-then Kolkata was chosen as it was the capital

of British India.
In early1881, Oriental Telephone Company Limited of England opened telephone
exchanges at Calcutta (Kolkata), Bombay (Mumbai), Madras (Chennai) and
Ahmedabad. On the 28th January 1882 the first formal telephone service was

established with a total of 93 subscribers.

From the year 1902 India drastically changes from cable telegraph to wireless
telegraph, radio telegraph, radio telephone, trunk dialing. Trunk dialing used in India
for more than a decade, were system allowed subscribers to dial calls with operator
assistance. Later moved to digital microwave, optical fiber, satellite earth station.
During British period all major cities and towns in India were linked with telephones.

So who was looking after Telecom?

In the year 1975 Department of Telecom (DoT) was responsible for telecom services
in entire country after separation from Indian Post & Telecommunication. Decade
later Mahanagar Telephone Nigam Limited (MTNL) was chipped out of DoT to run

the telecom services of Delhi and Mumbai.

In 1990s the telecom sector was opened up by the Government for private investment.
In1995 TRAI (Telecom Regulatory Authority of India) was setup. This reduced the
interference of Government in deciding tariffs and policy making. The Government of
India corporatized the operations wing of DoT in 2000 and renamed Department of

Telecom as Bharat Sanchar Nigam Limited (BSNL).

In last 10 years many private operators especially foreign investors successfully
entered the high potential Indian telecom market. Globally acclaimed operators like
Telenor, NTT Docomo, Vodafone, Sistema, SingTel, Maxis, Etisalat invested in India
mobile operators.

Market Size:

Driven by strong adoption of data consumption on handheld devices, the total mobile
services market revenue in India is expected to touch US$ 37 billion in 2017,

registering a Compound Annual Growth Rate (CAGR) of 5.2 per cent between 2014
and 2017, according to research firm IDC.

India's mobile subscriber base is expected to cross 500 million! Subscribers by the
end of FY2015 from 453 million subscribers at the end of FY2014.

According to a study by GSMA, smartphones are expected to account for two out of
every three mobile connections globally by 2020 making India the fourth largest
smartphone market.

The broadband services user-base in India is expected to grow to 250 million

connections by 2017, according to GSMA.

Telecommunication has been recognized world-over as an important tool for socioeconomic development for a nation and plays a phenomenal role in growth and
modernization of various sectors of the economy.

Over the last few years, Indian telecom market has shown overwhelming growth
thanks to domestic demand, policy initiatives undertaken by the government and
admirable efforts by the players of the industry and in the process, has managed to
emerge as one of the youngest and fastest growing economies in the world today.

Factors like regulatory liberalization, structural reforms and competition played a very
important part in this rapid transformation.

Liberalization of the sector has not only led to rapid growth but also helped a great
deal towards maximization of consumer benefits, evident from a huge fall in tariffs.

India added the highest number of net mobile phone subscriptions of 13 million
during the third quarter of 2015@.

International Data Corporation (IDC) predicts India to overtake US as the secondlargest smartphone market globally by 2017 and to maintain high growth rate over the
next few years as people switch to smartphones and gradually upgrade to 4G.

In spite of only 5 per cent increase in mobile connections in 2015, overall expenditure
on mobile services in India is expected to increase to US$ 21.4 billion in 2015, led by
15 per cent growth in data services expenditure, as per research firm Gartner.

The Indian telecom sector is expected to generate four million direct and indirect jobs
over the next five years according to estimated by standard India.

The employment opportunities are expected to be created due to combination of

governments efforts to increase penetration in rural areas and the rapid increase in
smartphone sales and rising internet usage.

Investment:

With daily increasing subscriber base, there have been a lot of investments and
developments in the sector.The industry has attracted FDI worth US$ 17.7
billion during the period April 2000 to September 2015, according to the data released
by Department of Industrial Policy and Promotion (DIPP).
Some of the major developments in the recent past are:

Walmart India Private Limited's president has shown interest in opening its chain of
stores in Haryana, while Micromax has also offered to set up a mobile handset
manufacturing unit in the National Capital Region (NCR).

Vodacom SA, a subsidiary of Vodafone Plc, has entered into an agreement with Tata
Communications Ltd to buy the fixed-line assets of TataComm's South African
telecom subsidiary Neotel Pvt Ltd.

BhartiAirtel has planned to invest Rs 60,000 crore (US$ 9.02 billion) over a period of
three years with a view to boost its telecom network capacity thereby improving the
quality of voice and data services to its customers.

Reliance Communications Ltd, Indias fourth largest mobile services provider, has
agreed to acquire SistemaShyamTeleServices Ltd (SSTL), the local unit of Russian
company Sistema JSFC, in a deal valued at Rs 4,500 crore (US$ 687 million), which
includes payments to the government for spectrum allotted to Sistema.

Videocon Industries Ltd plans to set up a mobile handset assembly plant along with
manufacturing set top boxes in Punjab for an investment of Rs 500 crore (US$ 76.7
million) over three years.

American Tower Corporation, a New York Stock Exchange-listed mobile

infrastructure firm, has acquired 51 per cent stake in telecom tower company Viom
Networks in a deal worth Rs 7,635 crore (US$ 1.17 billion).

Chinese smartphone maker OnePlus has announced its partnership with Foxconn, a
Taiwanese company, for assembling its phones in Foxconn's factory in Andhra
Pradesh.

Government Initiatives:
The government has fast-tracked reforms in the telecom sector and continues to be proactive
in providing room for growth for telecom companies. Some of the other major has taken by
the government are as follows:

The Telecom Regulatory Authority of India (TRAI) has directed the telecom
companies or mobile operators to compensate the consumers in the event of dropped
calls with a view to reduce the increasing number of dropped calls.

With a view to encourage consolidation in the telecom sector, the Government of

India has approved the rules for spectrum trading that will allow telecom companies
to buy and sell rights to unused spectrum among themselves. The Union Cabinet
chaired by the Prime Minister Mr NarendraModi gave its approval to the guidelines
on spectrum sharing, aimed to improve spectral efficiency and quality of service,
based on the recommendations of the Telecom Regulatory Authority of India (TRAI).

The Central Governments several initiatives to promote manufacturing in the

country, such as Make in India campaign appears to have had a positive impact on
mobile handsets manufacturing in the country. Companies like Samsung, Micromax
and Spice had been assembling handsets in the country already. Xiaomi and Motorola,
along with Lenovo have also started assembly of smartphones in India. Firms like
HTC, Asus and Gionee too have shown interest in setting up a manufacturing base in
the country.

The Government of India plans to roll out free high-speed wi-fi in 2,500 cities and
towns across the country over the next three years. The program entails an investment
of up to Rs 7,000 crore (US$ 1.06 billion) and will be implemented by state-owned
Bharat Sanchar Nigam Ltd (BSNL).

Road Ahead:

India will emerge as a leading player in the virtual world by having 700 million
internet users of the 4.7 billion global users by 2025, as per a Microsoft report. With
the governments favourable regulation policies and 4G services hitting the market,
the Indian telecommunication sector is expected to witness fast growth in the next few
years.

Exchange Rate Used: INR 1 = US$ 0.015 as on December 17, 2015.

Chapter-4

Data analysis & interpretation

1.In your opinion what would be the frequency of Performance Appraisal should be?
a) Quarterly. b) Half Yearly.c) Annually.
Table no.4.1:shows thefrequency of Performance Appraisal.
S.No
1
2
3

Particulars
Quarterly
Half yearly
annually

No of respondents
66
20
14

Percentage ( % )
66
20
14

The graph no:4.1.1 : Shows the frequency of Performance Appraisal.

70
60
50
40

no of respodents

30

Column1

20
10
0
quertely

half-yearly

annually

INTERPRETATION:
From the above table we observe that 66% employees strongly agreed with the quarterly
performance appraisal and 20% employees agreed with half yearly performance appraisal and
remaining 14%employees at BSNL agreed with annually performance appraisal thus it is
clear that most of the employees at BSNLare required quarterly performance method must be
conducted every quarter.

2. Does the performance appraisal system improve the overall performance of the
organization?
a) Strongly agree.

b) Agree.

c) Disagree.

d) Strongly disagree.

Table no.4.2:shows the performance appraisal system improve the overall performance of the
organization?

S.No
1

particulars
Strongly agree

No .of respondents
50

Percentage ( % )
50

2
3
4

Agree
Disagree
Strongly
disagree

30
15
5

30
15
5

The graph no: 4.1.2 : Shows the Performance Appraisal followed by organization.

60
50
40
30
20
10
0

particulars
no of respodents
percentage

INTERPRETATION:
From the above chart 50% of the employees are strongly agreed that the existing appraisal system
improves overall performance of the organization and 30% of the employees agreed that and reaming
15% of the employees disagreed and 5% of the employees were strongly disagreed with the issue. we
strongly agree that the performance appraisal in our organization improves the overall performance
of the organization and if performance appraisal is not good or poor the organization performance
will be poor.

3.Does the performance appraisal system improve relationship between superiors and
subordinates?
a) Strongly agree.

b) Agree.

c) Disagree.

d) Strongly disagree.

Table no.4.1.3: Shows the relaionship between superiors and subordinates.

S.No
1
2
3
4

Particulars
Strongly agreed
Agree
Disagree
Strongly disagree

No of respondents
50
40
10
0

Percentage ( % )
50
40
10
0

The graph no:4.1.3 : shows the relaionship between superiors and subordinates.
60
50
40
no of respodents

30

percenatge
20
10
0
strongly agree

agree

disagree

strongly disagree

INTERPRETATION:
From the above chart 50% of the employees are strongly agreed that the existing appraisal system
improves overall performance of the organization and 40% of the employees agreed that and reaming
10% of the employees disagreed and 0% of the employees were strongly disagreed with the issue. we
strongly agree that the performance appraisal in our organization improves the overall performance
of the organization and if performance appraisal is not good or poor the organization performance
will be poor.

4. Does the appraisal system provide an opportunity to each appraise to express his
developmental needs?
a) Strongly agree.

b) Agree.

c) Disagree.

d) Strongly disagree.

Table No.4.1.4: Shows the appraise to express his developmental needs.

S.No
1
2
3
4

Particulars
Strongly agree
Agree
Disagree
Strongly disagree

No of respondents
44
34
16
6

Percentage ( % )
44
34
16
6

The graph no.4.1.4:shows the appraise to express his developmental needs.

60
50
40
no of respodents

30

percenatge
20
10
0
strongly agree

agree

disagree

strongly disagree

INTERPRETATION:
From the above chart 44% of the employees are strongly agreed that the existing appraisal system
improves overall performance of the organization and 34% of the employees agreed that and reaming
16% of the employees disagreed and 6% of the employees were strongly disagreed with the issue. we
strongly agree that the performance appraisal in our organization improves the overall performance
of the organization and if performance appraisal is not good or poor the organization performance
will be poor.

5.Does the objective of the appraisal system are clear to all the employees?
a) Strongly agree. b)Agree.
c)Disagree. d) Strongly disagree.
Table No.4.1.5: shows the appraisal system is clear to all the employees.
S.No
1
2
3
4

Particulars
Strongly agree
Agree
Disagree
Strongly disagree

No of respondents
52
28
12
8

Percentage( % )
52
28
12
8

The graph.4.1.5: shows the appraisal system is clear to all the employees.
60
50
40
no of respodents

30

percenatge
20
10
0
strongly agree

agree

disagree

strongly disagree

INTERPRETATION:
From the above chart 52% of the employees are strongly agreed that the existing appraisal system
improves overall performance of the organization and 28% of the employees agreed that and reaming
12% of the employees disagreed and 8% of the employees were strongly disagreed with the issue. we
strongly agree that the performance appraisal in our organization improves the overall performance
of the organization and if performance appraisal is not good or poor the organization performance
will be poor.

6. Does the HR department follow the identification of training needs after the
appraisal?
a) Strongly agree. b) Agree.
c) Disagree. d) Strongly disagree.
Table no.4.6: Shows training needs after appraisal.
S.No
1
2
3
4

Particulars
Strongly agree
Agree
Disagree
Strongly disagree

No of respondents
42
38
16
4

The graph 4.1.6:shows the training needs after appraisal.

Percentage ( % )
42
38
16
4

45
40
35
30
25

no of respodents

20

percenatge

15
10
5
0
strongly agree

agree

disagree

strongly disagree

INTERPRETATION:
From the above chart 42% of the employees are strongly agreed that the existing appraisal system
improves overall performance of the organization and 38% of the employees agreed that and reaming
16% of the employees disagreed and 4% of the employees were strongly disagreed with the issue. we
strongly agree that the performance appraisal in our organization improves the overall performance
of the organization and if performance appraisal is not good or poor the organization performance
will be poor.

7.Do you think the employees should regularly receive feedback about their performance?
a) Strongly agree.

b) Agree.

c) Disagree.

d) Strongly disagree.

Table No.4.1.7:Shows that feedback about their performance.

S.No
1
2
3
4

particulars
Strongly agree
Agree
Disagree
Strongly disagree

No of respondents
53
39
5
3

Percentage ( % )
53
39
5
3

The graph.4.1.7: Shows that feedback about their performance.

60
50
40
no of respodents

30

percenatge
20
10
0
strongly agree

agree

disagree

strongly disagree

INTERPRETATION:
From the above chart 53% of the employees are strongly agreed that the existing appraisal system
improves overall performance of the organization and 39% of the employees agreed that and reaming
5% of the employees disagreed and 3% of the employees were strongly disagreed with the issue. We
strongly agree that the performance appraisal in our organization improves the overall performance
of the organization and if performance appraisal is not good or poor the organization performance
will be poor.

1. Does the HR department actively review each appraisal and discuss them with head of
the department?
a) Strongly agree. b) Agree.
c) Disagree. d) Strongly disagree.
Table no.4.8: Shows that the reviews of each appraisal and discuss with the head
of the department.
S.No
1
2
3
4

particulars
Strongly agree
Agree
Disagree
Strongly disagree

No of respondents
54
26
18
2

Percentage ( % )
54
26
18
2

The graph.4.1.8: Shows that the reviews of each appraisal and discuss with head
of the department.

60
50
40
no of respodents

30

percenatge
20
10
0
strongly agree

agree

disagree

strongly disagree

INTERPRETATION:
From the above chart 54% of the employees are strongly agreed that the existing appraisal system
improves overall performance of the organization and 26% of the employees agreed that and reaming
18% of the employees disagreed and 2% of the employees were strongly disagreed with the issue. we
strongly agree that the performance appraisal in our organization improves the overall performance
of the organization and if performance appraisal is not good or poor the organization performance
will be poor.

2. Do you think the performance appraisal programme covers all the aspects of the job?
a) Strongly agree. b) Agree.
c) Disagree. d) Strongly disagree.
Table no.4.9: Shows the Performance Apprasial.

s.n.o
1
2
3
4

Particulars
Strongly agree
Agree
Disagree
Strongly disagree

No of respondents
50
32
17
1

Percentage ( % )
50
32
17
1

The graph.4.1.9: Shows the Performance Appraisal.

60
50
40
no of respodents

30

percenatge
20
10
0
strongly agree

agree

disagree

strongly disagree

INTERPRETATION:
From the above chart 50% of the employees are strongly agreed that the existing appraisal system
improves overall performance of the organization and 32% of the employees agreed that and reaming
17% of the employees disagreed and 1% of the employees were strongly disagreed with the
issue.They strongly agree that the performance appraisal in our organization improves the overall
performance of the organization and if performance appraisal is not good or poor the organization
performance will be poor.

10.Does the performance appraisal play a key role in the organization development?
a)Strongly agree.

b) Agree.

c)Disagree.

d) Strongly Disagree.

Table No.4.10: Shows the appraisal system is clear to all the employees.

S.No.
1
2
3

Particulars
Strongly agree
Agree
Disagree

No .of respondents
62
28
8

Percentage ( % )
62
28
8

Strongly disagree

The graph.4.1.10: Shows the appraise system is clear to all the employees.

70
60
50
40
no of respodents
percenatge

30
20
10
0
strongly agree

agree

disagree

strongly disagree

INTERPRETATION:
From the above chart 62% of the employees are strongly agreed that the existing appraisal system
improves overall performance of the organization and 28% of the employees agreed that and reaming

8% of the employees disagreed and 2% of the employees were strongly disagreed with the
issue.They strongly agree that the performance appraisal in our organization improves the overall
performance of the organization and if performance appraisal is not good or poor the organization
performance will be poor.

11.Do the employees performance rewarded properly on recognition?

a)Strongly agree.

b) Agree.

c) Disagree.

d) Strongly disagree.

Table No.4.11: Shows the appraisal system is clear to all the employees.

S.No
1
2
3
4

Particulars
Strongly agree
Agree
Disagree
Strongly disagree

No of respondents
50
36
11
3

Percentage ( % )
50
36
11
3

The graph.4.1.1.1: Shows the appraisal system is clear to all the employees.

60
50
40
no of respodents

30

percenatge
20
10
0
strongly agree

agree

disagree

strongly disagree

INTERPRETATION:
From the above chart 50% of the employees are strongly agreed that the existing appraisal system
improves overall performance of the organization and 36% of the employees agreed that and reaming
11% of the employees disagreed and 3% of the employees were strongly disagreed with the issue. we
strongly agree that the performance appraisal in our organization improves the overall performance
of the organization and if performance appraisal is not good or poor the organization performance
will be poor.

12.Do you feel that the promotion should be based on performance of an individual?
a) Strongly agree.

b) Agree.

c)Disagree.

d) Strongly Disagree.

Table No.4.12:Shows the appraisal system is clear to all the employees.

s.no
1
2
3
4

Particulars
Strongly agree
Agree
Disagree
Strongly disagree

No of respondents
48
32
12
8

Percentage
48
32
12
8

The graph.4.1.15: Shows the appraisal system is clear to all the employees.
60
50
40
no of respodents

30

percenatge
20
10
0
strongly agree

agree

disagree

strongly disagree

INTERPRETATION:
From the above chart 48% of the employees are strongly agreed that the existing appraisal system
that improves overall performance of the organization and 32% of the employees agreed that and
reaming 12% of the employees disagreed and 8% of the employees were strongly disagreed with the
issue.They strongly agree that the performance appraisal in our organization improves the overall
performance of the organization and if performance appraisal is not good or poor the organization
performance will be poor.

13.In your opinion who will be the right person to appraise your performance?
a)Immediate boss.

b) Head of the department.

c) Both.

Table No.4.13:Shows the right person to appraise employee performance.

S.No
1
2
3

Particulars
Immediate boss
Head of the department
Both

No of respondents
76
24
0

Percentage ( % )
76
24
0

The graph.4.1.13 : Shows the right person to appraise employee performance.

80
70
60
50
no o respodents

40

percentage
30
20
10
0
immediate boss head of the department

Interpretation:

both

From the above chart 76% of the employees agreed with that the immediate boss is the right person
to appraise the employees. And the remaining 24 % ofemployees agreed with that the head of the
department. And no one agrees with both of them.

14. Does the appraisal system communicate the plans of top management?
a) Strongly agree.

b) Agree.

c) Disagree.

d) Strongly disagree.

Table No.4.14:Shows the appraise system communicate the plans of top

management.
S.No
1
2
3
4

Particulars
Strongly agree
Agree
Disagree
Strongly disagree

No of respondents
55
21
14
10

Percentage (%)
55
21
14
10

The graph.4.1.14:shows the Shows the appraise system communicate the plans of
top management.

60
50
40
no of respodents

30

percentage
20
10
0
strongly agree

agree

disagree

strongly disagree

INTERPRETATION:
From the above chart 55% of the employees are strongly agreed that the existing appraisal system
improves overall performance of the organization and 21% of the employees agreed that and reaming
14% of the employees disagreed and 10% of the employees were strongly disagreed with the issue.
They strongly agree that the performance appraisal in our organization improves the overall
performance of the organization and if performance appraisal is not good or poor the organization
performance will be poor.

15.Do you believe the proper performance system prevents grievance and develop
confidence among employees?
a) Strongly agree.

b) Agree.

c) Disagree.

d) Strongly disagree.

Table No.41.5:Showsthe proper performance system prevents grievance and develop

confidence among employees.

S.No

particulars

No of respondents

Percentage ( % )

Strongly agree

56

56

2
3
4

Agree
Disagree
Strongly disagree

24
16
4

24
16
4

The graph.4.1.15:Shows the proper performance system prevents grievance and develop
confidence among employees.

60
50
40
no of respodents

30

percentage
20
10
0
strongly agree

agree

disagree

strongly disagre

INTERPRETATION:
From the above chart 56% of the employees are strongly agreed that the existing appraisal system
improves overall performance of the organization and 24% of the employees agreed that and reaming
16% of the employees disagreed and 4% of the employees were strongly disagreed with the
issue.They strongly agree that the performance appraisal in our organization improves the overall
performance of the organization and if performance appraisal is not good or poor the organization
performance will be poor.

FINDINGS

Findings:

Most of the employees in the Organization had positive attitude towards the
Performance Appraisal system in BSNL.

I Observed that most of the employees are disagree that their superiors did not spend
ample time to review employees performance and progress against setting of goals.

I Observed that most of the employees are disagreed that discussions are held between
them and superiors regarding employees performance.

That the interrelationship between employee and their superiors is satisfactory but not the
good or excellent.

Invalid or immeasurable criteria for appraisal.

Most of the employees in the Organization do not have clear idea on performance
appraisal system.

Chapter-5

SUMMARY&SUGGESTIONS

SUGGESTIONS

Suggestions:

Based on the problem areas identified in the previous section, and analyzing the inhibiting
factors for the employee performance, we make the following Suggestions to improve the
existing performance appraisal system.

The Every Employee in the BSNL should get complete awareness about the
Performance Appraisal process in the Organization.

The Every Employee in the BSNL should get complete awareness about the Quarterly,
Half-Yearly Review; if possible it should be implemented by the Organization.

If any mistakes were made by employees then those mistakes should be rectified by their
in charge.

Some of the employees expecting that their superiors should spend ample of time with
them.

Organization should conduct the discussion sections between the superiors regarding
employees performance.

The inter relationship between superiors and employees should be increased.

The 3600 feedback should be implemented in the organization to know the employees
performance performed by them.

The supervisor should communicate the rationale behind the weightages for each criteria
at the beginning of the appraisal process. If sufficient rationale is not found, they should
be modified in consultation with the supervisor and the employee.

Increase two-way communication between supervisors and employees.

The current lack of a link between performance and reward is discouraging the
employees. A system for providing positive reinforcement to good performers should set
up to keep them motivated. Recognition schemes like Star of the Month or felicitation
during an annual program or mention in the quarterly newsletter should be initiated.

The appraisers should be provided training on conducting performance appraisal sessions.

The results of the survey indicate that employees feel that the appraiser dominates the
discussion. Appraisers should be encouraged to listen well the appraise and to explain the
rationale for the final rating given so that the appraise sees it as a participative discussion.

The lack of seriousness about the performance appraisal process may be because of the
lack of a link with rewards. The Company should conduct training sessions to emphasizes
on the importance of the process.

The result of the appraisal process should be known to the employee to allow him/her to
correct his/her mistakes.

CONCLUSION:

Conclusion:

Bibliography :

BOOKS:
Rao TV(1999).

Appraising and Developing Managerial Performance. Pg 311

John Drake(1997).

Performance Appraisal. Nov. pg 80

Prem Chadha

Performance Management Delhi; McMillan India Ltd.,

P.N.Singh

Developing and Managing Human Resources Bombay: Suchandra

Publications

Journal Articles
Jill Cook & Alf Crossman(2006). Satisfaction with performance appraisal systems A study
of role perceptions.Journal of Managerial Psychology Vol. 19 No. 5, 2004 pp. 526-541
Julian Birkinshaw (2007), The Ambidextrous Organization. LBS

Web Sites :

www.performance-appraisal.com
www.managementhelp.org

QESTIONNAIRES

Name:
qualification:
Age:
designation:
Department:
experience:

1. In my opinion what would be the frequency of performance appraisal should be?

a) Quarterly.
b) Half Yearly.c) Annually.
2. Does the performance appraisal system followed by your organization improve the
overall performance of the organization?
a) Strongly agree. b) Agree.
c) Disagree. d) Strongly Disagree.
3. Does the performance appraisal system has improves relationship between superiors
and subordinates?
a) Strongly agree .b) agree.
c) Disagree. d) Strongly Disagree.
4. Does the appraisal system provide an opportunity to each appraise to express his
developmental needs?
a)Strongly agree.b) agree.
c) Disagree. d) Strongly Disagree
5. Does the objectives of the appraisal system are clear to all the employees?
a) Strongly agree b)agree
c)Disagree
d) Strongly Disagree
6. Does the HR department follows identification of training needs after the appraisal
a) Strongly agree b) agree
c) Disagree d) Strongly Disagree

7. Do you think the employee should regularly receive feedback about their
performance?a)Strongly agree
b) agree
c) Disagree d) Strongly
Disagree
8. Does the HR department actively review each appraisal and discuss them with head of
the department?
a)Strongly agree

b) agree

c) Disagree

d) Strongly Disagree

9. Do you think the performance appraisal programme covers all the aspects of the job?
a)Strongly agree

b) agree

c) Disagree

d) Strongly Disagree

10. Does the performance appraisal play a key role in the organization development?
a) Strongly agree
b) agree
c)Disagree
d) Strongly Disagree
11. Is the employee performance is rewarded properly on recognition?
a) Strongly agree
b) agree
c)Disagree
d) Strongly Disagree
12. Do you feel that the promotion should be based on performance of individual?
a)Strongly agree

b) agree

c)Disagree

d) Strongly Disagree

13. In your opinion who will be the right person to appraise your performance?
a)Immediate boss
b) Head of the department
c) Both
14. Does the appraisal system communicate the plans of top management?
a)Strongly agree

b)agree

c) Disagree

d) Strongly Disagree

15. Do you believe the proper performance system prevents grievance and develop
confidence among employees?
a)Strongly agree

b) agree

c) Disagree

d) Strongly Disagree