INTERNAL GUIDE CERTIFICATE

Sanjib Pattnaik

Assistant professor

IBCS, SOA University

CERTIFICATE

This is to certify that Ms. Manisa Badajena, having regd. No. 0941333015 has done this
research project work on “Performance Appraisal: A study on Bhartiya Sanchar Nigam
Limited” and submitted the report in partial fulfillment for the degree of Master of Business
Administration to IBCS, SOA University, Bhubaneswar under my supervision and guidance.

Her report is the record of original work done by her. To the best of my knowledge, no
part of the content of this report has been submitted for any degree by her or anybody else to
any other University or Institution.

Date : Sanjib Pattnaik

Place : Bhubaneswar Assistant professor

Project Guide
 DECLARATION

I, Ms. Manisa Badajena, hereby declare that the project report submitted by me
entitled, “Performance Appraisal: A study on Bhartiya Sanchar Nigam Limited”
in the partial fulfillment for the degree of MBA to IBCS, SOA University,
Bhubaneswar, is the record of original work done by me. No part of the content
of this repost has been submitted to any institution/university for the award of
any degree. Previous works in this field have been duly acknowledged as when
they have been referred.

Date : Manisa Badajena

Place : Bhubaneswar Regd. No.

0941333015

ACKNOWLEDGEMENT
The project titled “Performance Appraisal: A study on Bhartiya Sanchar Nigam
Limited” is a genuine work of mine and has been prepared after an indepth
study of the Human Resource department of B.S.N.L.

The work is also the result of persistent guidance of my internal guide Sanjib
Pattnaik, Assistant Professor, IBCS without whom it would have been almost
impossible for me to come out with such a comprehensive study.

I also believe to the best of my knowledge, that this project or any part therefore
has never been submitted to IBCS or anywhere for other purposes.

Manisa Badajena
Regd. No: 0941333015

CHAPTER I: INTRODUCTION TO THE TOPIC

Human Resource (or personnel) management, in the sense of getting things done through people,
is an essential part of every manager’s responsibility, but many organizations find it
advantageous to establish a specialist division to provide an expert service dedicated to ensuring
that the human resource function is performed efficiently.

“People are our most valuable asset” is a cliché, which no member of any senior management
team would disagree with. Yet, the reality for many organizations are that their people remain
under valued, under trained and under utilized.

Performance Appraisal is the process of assessing the performance and progress of an employee
or a group of employees on a given job and his / their potential for future development. It
consists of all formal procedures used in the working organizations to evaluate personalities,
contributions and potentials of employees.

RELEVANCE OF THE STUDY

Performance Appraisal is the important aspect in the organization to evaluate the employees
performance. It helps in understanding the employees work culture, involvement, and
satisfaction. It helps the organization in deciding employees promotion, transfer, incentives, pay
increase.

OBJECTIVES OF THE STUDY

To carry out the study of BSNL, we framed the following objectives

1. To identify the technique of performance appraisal followed in BSNL.

2. To find the employees attitude towards the present appraisal system.

3. To review the current appraisal system in order to

i. Enhance productivity.

ii. Attain global standards.

4. To provide suggestions and recommendations from the study conducted.

METHODS OF THE STUDY

I. SAMPLE DESIGN
 Sample Size = 50 Employees

Sample Area = Bhubaneswar Corporate Office

Duration = Two months

II. DATA COLLECTION

Data Sources:

i. Primary Data through Questionnaire.

ii. Secondary data through Questionnaire

iii. Contact Method

iv. Personal Interaction

III. DATA PRESENTATION AND ANALYSIS

i. Bar graphs.

ii. Pie charts.

SCOPE OF THE STUDY

The present study is undertaken in BSNL. This study is restricted to the corporate office located
in Bhuubaneswar. In this study of mine both the executives and non-executives are interviewed.

LIMITATIONS OF THE STUDY

A few limitations and constraints came in the way of conducting the present study, under which
are as follows:

• Although all attempts were made to make this an objective study, biases on the part of
respondents might have resulted in some subjectivity.

• Though no effort was spared to make the study most accurate and useful, the “sample
size” selected for the same may not be true representive of the company, resulting in
biased results.

• This being the maiden experience of the researcher of conducting study such as this, the
possibility of better results, using deeper statistical techniques in analyzing and
interpreting data may not be ruled out.

WHAT IS “PERFORMANCE APPRAISAL”?

Performance Appraisal is defined as the process of assessing the performance and progress of an
employee or a group of employees on a given job and his / their potential for future development.
It consists of all formal procedures used in working organizations and potential of employees.
According to Flippo, “Performance Appraisal is the systematic, periodic and an important rating
of an employee’s excellence in matters pertaining to his present job and his potential for a better
job.”

CHARACTERISTICS

1. Performance Appraisal is a process.

2. It is the systematic examination of the strengths and weakness of an employee in

terms of his job.

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

4. It is an ongoing and continuous process wherein the evaluations are arranged

periodically according to a definite plan.

5. The main purpose of Performance Appraisal is to secure information necessary

for making objective and correct decision an employee.

PROCESS

The process of performance appraisal:

1. Establishing performance standards

2. Communicating the Standards

3. Measuring Performance

4. Comparing the actual with the standards

5. Discussing the appraisal

6. Taking Corrective Action

METHODS OF PERFORMANCE APPRAISAL

The foregoing list of major program pitfalls represents a formidable challenge, even considering
the available battery of appraisal techniques. But attempting to avoid these pitfalls by doing
away with appraisals themselves is like trying to solve the problems of life by committing
suicide. The more logical task is to identify those appraisal practices that are (a) most likely to
achieve a particular objective and (b) least vulnerable to the obstacles already discussed.

Before relating the specific techniques to the goals of performance appraisal stated at the outset
of the article, I shall briefly review each, taking them more or less in an order of increasing
complexity.

The best-known techniques will be treated most briefly.

ESSAY APPRAISAL

In its simplest form, this technique asks the rater to write a paragraph or more covering an
individual's strengths, weaknesses, potential, and so on. In most selection situations, particularly
those involving professional, sales, or managerial positions, essay appraisals from former
employers, teachers, or associates carry significant weight.

GRAPHIC RATING SCALE

This technique may not yield the depth of an essay appraisal, but it is more consistent and
reliable. Typically, a graphic scale assesses a person on the quality and quantity of his work (is
he outstanding, above average, average, or unsatisfactory?) and on a variety of other factors that
vary with the job but usually include personal traits like reliability and cooperation. It may also
include specific performance items like oral and written communication.

FIELD REVIEW

The field review is one of several techniques for doing this. A member of the personnel or
central administrative staff meets with small groups of raters from each supervisory unit and
goes over each employee's rating with them to (a) identify areas of inter-rater disagreement, (b)
help the group arrive at a consensus, and (c) determine that each rater conceives the standards
similarly. .

FORCED-CHOICE RATING

Like the field review, this technique was developed to reduce bias and establish objective
standards of comparison between individuals, but it does not involve the intervention of a third
party.

MANAGEMENT BY OBJECTIVES

To avoid, or to deal with, the feeling that they are being judged by unfairly high standards,
employees in some organizations are being asked to set - or help set - their own performance
goals. Within the past five or six years, MBO has become something of a fad and is so familiar
to most managers that I will not dwell on it here.

RANKING METHODS

For comparative purposes, particularly when it is necessary to compare people who work for
different supervisors, individual statements, ratings, or appraisal forms are not particularly
useful. Instead, it is necessary to recognize that comparisons involve an overall subjective
judgment to which a host of additional facts and impressions must somehow be added. There is
no single form or way to do this.

The best approach appears to be a ranking technique involving pooled judgment.

The two most effective methods are alternation ranking and paired comparison ranking.

1. “Alternation ranking”:

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

2. “Paired-comparison ranking”:

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

Both ranking techniques, particularly when combined with multiple rankings (i.e., when two or
more people are asked to make independent rankings of the same work group and their lists are
averaged), are among the best available for generating valid order-of-merit rankings for salary
administration purposes.

ASSESSMENT CENTERS

So far, we have been talking about assessing past performance. What about the assessment of
future performance or potential? In any placement decision and even more so in promotion
decisions, some prediction of future performance is necessary. How can this kind of prediction
be made most validly and most fairly?

360 DEGREE FEEDBACK

Many firms have expanded the idea of upward feedback into what the call 360-degree feedback.
The feedback is generally used for training and development, rather than for pay increases.

Most 360 Degree Feedback system contains several common features. Appropriate parties –
peers, supervisors, subordinates and customers, for instance – complete survey, questionnaires
on an individual. 360 degree feedback is also known as the multi-rater feedback, whereby ratings
are not given just by the next manager up in the organizational hierarchy, but also by peers and
subordinates. Appropriates customer ratings are also included, along with the element of self
appraisal. Once gathered in, the assessment from the various quarters are compared with one

another and the results communicated to the manager concerned.

Another technique that is useful for coaching purposes is, of course, MBO. Like the critical
incident method, it focuses on actual behavior and actual results, which can be discussed
objectively and constructively, with little or no need for a supervisor to "play God."

Advantages

Instead of assuming traits, the MBO method concentrates on actual outcomes. If the employee
meets or exceeds the set objectives, then he or she has demonstrated an acceptable level of job
performance. Employees are judged according to real outcomes, and not on their potential for
success, or on someone's subjective opinion of their abilities.

The guiding principle of the MBO approach is that direct results can be observed easily. The
MBO method recognizes the fact that it is difficult to neatly dissect all the complex and varied
elements that go to make up employee performance.

MBO advocates claim that the performance of employees cannot be broken up into so many
constituent parts, but to put all the parts together and the performance may be directly observed
and measured.

Disadvantages

This approach can lead to unrealistic expectations about what can and cannot be reasonably
accomplished. Supervisors and subordinates must have very good "reality checking" skills to use
MBO appraisal methods. They will need these skills during the initial stage of objective setting,
and for the purposes of self-auditing and self-monitoring.

Variable objectives may cause employee confusion. It is also possible that fluid objectives may
be distorted to disguise or justify failures in performance.

Benefits of Performance Appraisals

• Measures an employee’s performance.

• Helps in clarifying, defining, redefining priorities and objectives.
• Motivates the employee through achievement and feedback.
 • Facilitates assessment and agreement of training needs.
• Helps in identification of personal strengths and weaknesses.
• Plays an important role in Personal career and succession planning.
• Clarifies team roles and facilitates team building.
• Plays major role in organizational training needs assessment and analysis.
• Improves understanding and relationship between the employee and the
reporting manager and also helps in resolving confusions and misunderstandings.
• Plays an important tool for communicating the organization’s
philosophies, values, aims, strategies, priorities, etc among its employees.
• Helps in counseling and feedback.

Rating Errors in Performance Appraisals

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

Leniency or severity: - Leniency or severity on the part of the rater makes the assessment
subjective. Subjective assessment defeats the very purpose of performance appraisal. Ratings are
lenient for the following reasons:

a) The rater may feel that anyone under his or her jurisdiction who is rated
unfavorably will reflect poorly on his or her own worthiness.

b) He/She may feel that a derogatory rating will be revealed to the rate to
detriment the relations between the rater and the ratee.

c) He/She may rate leniently in order to win promotions for the subordinates
and therefore, indirectly increase his/her hold over him.

Central tendency: - This occurs when employees are incorrectly rated near the average or
middle of the scale. The attitude of the rater is to play safe. This safe playing attitude stems from
certain doubts and anxieties, which the raters have been assessing the rates.
Halo error: - A halo error takes place when one aspect of an individual's performance influences
the evaluation of the entire performance of the individual. The halo error occurs when an
employee who works late constantly might be rated high on productivity and quality of output as
well ax on motivation. Similarly, an attractive or popular personality might be given a high
overall rating. Rating employees separately on each of the performance measures and
encouraging raters to guard against the halo effect are the two ways to reduce the halo effect.

Rater effect: -This includes favoritism, stereotyping, and hostility. Extensively high or low score
are given only to certain individuals or groups based on the rater's attitude towards them and not
on actual outcomes or behaviors; sex, age, race and friendship biases are examples of this type of
error.

Primacy and Regency effects: - The rater's rating is heavily influenced either by behavior
exhibited by the ratee during his early stage of the review period (primacy) or by the outcomes,
or behavior exhibited by the ratee near the end of the review period (regency). For example, if a
salesperson captures an important contract/sale just before the completion of the appraisal, the
timing of the incident may inflate his or her standing, even though the overall performance of the
sales person may not have been encouraging. One way of guarding against such an error is to ask
the rater to consider the composite performance of the rate and not to be influenced by one
incident or an achievement.

Performance dimension order: - Two or more dimensions on a performance instrument follow

each other and both describe or rotate to a similar quality. The rater rates the first dimensions
accurately and then rates the second dimension to the first because of the proximity. If the
dimensions had been arranged in a significantly different order, the ratings might have been
different.

Spillover effect: - This refers lo allowing past performance appraisal rating lo unjustifiably
influence current ratings. Past ratings, good or bad, result in similar rating for current period
although the demonstrated behavior docs not deserve the rating, good or bad.
PROFILE OF ORGANISATION:

HISTORY

BSNL is India's oldest and largest Communication Service Provider (CSP). Currently BSNL has
a customer base of 64.8 million (Basic & Mobile telephony). It has footprints throughout India
except for the metropolitan cities of Mumbai and New Delhi which are managed by MTNL. As
on March 31, 2007 BSNL commanded a customer base of 33.7 million Wire line, 3.6 million
CDMA-WLL and 27.5 million GSM Mobile subscribers. BSNL's earnings for the Financial Year
ending March 31, 2006 stood at INR 401.8b (US$ 9.09 b) with net profit of INR 89.4b (US$
2.02 billion). Today, BSNL is India's largest Telco and one of the largest Public Sector
Undertaking of the country with authorized share capital of US$ 3.95 billion (INR 17,500
Crores) and networth of US$ 14.32 billion.

The foundation of Telecom Network in India was laid by the British sometime in 19th century.
The history of BSNL is linked with the beginning of Telecom in India. In 19th century and for
almost entire 20th century, the Telecom in India was operated as a Government of India wing.
Earlier it was part of erstwhile Post & Telegraph Department (P&T). In 1975 the Department of
Telecom (DoT) was separated from P&T. DoT was responsible for running of Telecom services
in entire country until 1985 when Mahanagar Telephone Nigam Limited (MTNL) was carved out
of DoT to run the telecom services of Delhi and Mumbai. It is a well known fact that BSNL was
carved out of Department of Telecom to provide level playing field to private
telecoms.Subsequently in 1990s the telecom sector was opened up by the Government for
Private investment, therefore it became necessary to separate the Government's policy wing from
Operations wing. The Government of India corporatised the operations wing of DoT on October
01, 2000 and named it as Bharat Sanchar Nigam Limited (BSNL).BSNL operates as a public
sector.

Main Services being provided by BSNL BSNL provides almost every telecom service, however
following are the main Telecom Services being provided by BSNL in India:-
1. Universal Telecom Services : Fixed wireline services & Wireless in Local loop (WLL) using
CDMA Technology called bfone and Tarang respectively. BSNL is dominant operator in fixed
line. As on March 31, 2007 (end of financial year) BSNL had 76% share of fixed and WLL
phones.

2. Cellular Mobile Telephone Services: BSNL is major provider of Cellular Mobile Telephone
services using GSM platform under brand name Cellone. Pre-paid Cellular services of BSNL are
know as Excel. As on March 31, 2007 BSNL had 17% share of mobile telephony in the country.

3. Internet: BSNL is providing internet as dial-up connection (Sancharnet) and ADSL-

Broadband Dataone. BSNL has around 50% market share in broadband in India. BSNL has
planned aggressive rollout in broadband for current financial year.

4. Intelligent Network (IN) BSNL is providing IN services like tele-voting, toll free calling,
premium calling etc.

BSNL Present & Future Since its corporatization in October 2000, BSNL has been actively
providing connections in both Urban and Rural areas and the efficiency of the company has
drastically improved from the days when one had to wait for years to get a phone
connection to now when one can get a connection in even hours. Pre-activated Mobile
connections are available at many places across India. BSNL has also unveiled very cost-
effective Broadband internet access plans (DataOne) targeted at homes and small businesses. At
present BSNL enjoy's 47% of market share of ISP services.

Former Indian Communications Minister Thiru Dayanidhi Maran had declared year 2007 as
"Year of Broadband" in India and BSNL is gearing up to provide 5 million Broadband
connectivity by the end of 2007. BSNL has upgraded existing Dataone (Broadband) connections
for a speed of up to 2 Mbit/s without any extra cost. This 2 Mbit/s broadband service is being
provided by BSNL at a cost of just US$ 5.5 per month. Further, BSNL is planning to upgrade its
broadband services to Triple play (telecommunications) in 2007. BSNL has been asked to add
108 million customers by 2010 by Former Indian Communications Minister Thiru Dayanidhi
Maran. With the frantic activity in the communication sector in India, the target appears
achievable, however due to intense competition in Indian Telecom sector in recent past BSNL's
growth has slowed down.

BSNL is pioneer of Rural Telephony in India. BSNL has recently bagged 80% of US$ 580 m
(INR 2,500 crores) Rural Telephony project of Government of India.

Challenges

During Financial Year 2007-2008 (From April 01, 2006 to March 31, 2007) BSNL has added 9.6
million new customers in various telephone services taking its customer base to 64.8 million.
BSNL's nearest competitor Bharti Airtel is standing at a customer base of 39 million. However,
despite impressive growth shown by BSNL in recent times, the Fixed line customer base of
BSNL is declining. In order to woo back its fixed-line customers BSNL has brought down
long distance calling rate under OneIndia plan, however, the success of the scheme is not known.
However, BSNL faces bleak fiscal 2006-2007 as users flee, which has been accepted by the
CMD BSNL.

Presently there is an intense competition in Indian Telecom sector and various Telcos are rolling
out attractive schemes and are providing good customer services. However, BSNL being legacy
operator and its conversion from a Government Department, earns lot of criticism for its poor
customer service. Although in recent past there have been tremendous improvement in working
of BSNL but still it is much below the Industry's Expectations. A large aging (average age 49
years(appx)) workforce (300,000 strong), which is mostly semi-illiterate or illiterate is the main
reason for the poor customer service. Further, the Top management of BSNL is still working in
BSNL on deputation basis holding Government employee status thus having little commitment
to the organisation. Although in coming years the retirement profile of the workforce is very fast
and around 25% of existing workforce will retire by 2010, however, still the workforce will be
quite large by the industry standards. Quality of the workforce will also remain an issue.
Access Deficit Charges (ADC, a levy being paid by the private operators to BSNL for provide
service in non-lucarative areas especially rural areas) has been slashed by 37% by TRAI, w.e.f.
April 01, 2007. The reduction in ADC may hit the bottom lines of BSNL.

Vision
• To become the largest telecom Service Provider.

Mission
• To provide world class State-of-art technology telecom services to its customers on demand at
competitive prices.
• To Provide world class telecom infrastructure in its area of operation and to contribute to the
growth.

Objective
MP Telecom looks over the management, control and operation of the telecom network with the
following aims and objective
• To build a high degree of customer confidence by sustaining quality and reliability in service.
• To upgrade the quality of telecom service to international level.
• Provision of telephone connections on demand in all the villages of M.P.
• Expansion of new services like Internet, Intelligent Network, ISDN, Internet Telephony, Video
Conferencing, Broadband etc.
• Popularize Broadband Services and to be on-demand in the whole State.
• Expansion of Cellular Mobile Telephone to all towns.
• To open Internet Kiosks (Cafe's) at all Block Head Quarters.
• To improve the quality of present services being given to the subscribers.
• To open more Customer Service Centers and upgrade the existing Customer Service Centers
for better and friendly Customer care.
• Modernize PSTN network by making RSUs & AN-RAX.
• Plantation of Trees to make environment Clean & Green.
• To raise necessary financial resources for its developmental needs.
• To increase accessibility of services, by providing a large number of Local and NSD/ISD
Public Call Offices (PCOs) so as to reach out to the masses.
Fact sheets

During the current financial year, the management based on physical verification of fixed assets
and inventory and reconciliation of various heads of assets and liabilities in the subsidiary and
general ledgers which has resulted into increase/decrease in the following assets and liabilities
taken over as on 01st October 2000 amounting to net reduction in the assets of Rs. 5,910 lakh
(P.Y. - Rs. 25,452 lakh).

In pursuance of the Memorandum of Understanding dated 30th September 2000 executed

between Government of India and BSNL, all assets and liabilities in respect of business carried
on by DTS and DTO were transferred to the Company with effect from 01st October 2000 at a
provisional value of Rs. 6,300,000 lakh and up to previous financial year BSNL has identified
net assets of Rs. 6,352,028 lakh against it.
DATA ANALYSIS AND INTERPRETATION

1) Whether performance appraisal system be implemented in the

organization to measure performance?

Options Response

Yes 84
No 16

Response

100
80
60
Response
40
20
0
Yes No

When asked about their opinion regarding implementation of Performance

appraisal system in the organization 84% of the employees agreed that
there should be performance appraisal system implemented in the
organization, because this helped them to grow in the organization and get
the performance bonus, where as only 16 percent resisted to such an idea
as they fear that this system will create problems for them.
2) Are you aware about the technique of Performance Appraisal being
followed at BSNL among Employees?

Options Response

Yes 72
No 28

Response

80

60

40 Response

20

0
Yes No

When asked whether the employees had the idea about what technique of
performance appraisal is being currently used in the organization, a
majority of 72 percent of employees agreed that they had the idea of the
performance appraisal technique used where as only 28 percent employees
had no idea of the technique being used in the organization.

3) Were you appraised in the last six months?

Options Response

Yes 68
No 32

Response

80
60
40 Res ponse
20
0
Yes No

In response to this question 68 percent of the employees agreed that they

were appraised during their service period where as only 32 percentage of
the employees denied of being appraised during their service period. This
indicates that there is a good and regular appraisal system in BSNL but is
not being seriously followed as 32 percent of the employees were not
appraised.

4) Employee’s opinion as to the present appraisal system

 Options Responses (in %)

Fully Satisfied 2

Satisfied 24

Can’t Say 44

Dissatisfied 30

Responses (in %)

50
40
30
Responses (in %)
20
10
0
Fully Satis fied Can’t Say Dissatisfied
Satisfied

When the question was put regarding their opinion towards the present
appraisal system in the organization only two percent of the employees
were fully satisfied where as 24 percent said they were satisfied with the
current system, 30 percent of the employees were dissatisfied and 44
percent of the employees were indifferent regarding the technique being
used. The quality of the performance appraisal system has to be improved
as a high number of the employees were dissatisfied with the existing
system.

5) Employee perception as to the frequency of appraisal

 Options Response (in %)

Once During The Service 2

Period
Continuous 92

Never 0

Can’t Say 6

Response (in %)

100
80
60
Response (in %)
40
20
0
Once During Continuous Never Can’t Say
The Service
Period

On being asked about their view towards the frequency of performance

appraisal only 2 percent of the employees wished to be appraised once
during their service period, where as a majority of the people wished that
this should be practiced continuously and 6 percent of the people went for
cant say and no one was against the concept of being appraised. This
indicates that the employees supported the concept of appraisal as it
helped them to develop their potentials and get early promotions.

6) If continuous appraisal – what should be the gap between two appraisal

period
 Options Response (in %)

Quarterly 20

Half Yearly 44

Yearly 36

Response (in %)

50
40
30
Response (in %)
20
10
0
Quarterly Half Yearly Yearly

When asked about their view regarding the gap period between two
appraisal, twenty percent of the employees wished that there should be
quarterly appraisal, 44 percent of the employees wished for half yearly
basis and 36 percent of the employees wished for an annual appraisal.
Most of the employees think that there should be some gap between two
appraisal periods. This is because it helps them to perform better.

7) Who should do the appraisal?

 Options Response ( in % )

Superior 24

Peer 0

Subordinate 0

Self Appraisal 8

Consultant 4

All of the above 48

Superior + Peer 16

Response ( in % )

60
50
40
30 Response ( in % )
20
10
0
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ta

Pe
r

ai
pe

ab
ul
di

pr

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ns
Su

Ap

he
bo

Co

r io
ft
Su

lf

pe
lo
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Su
Al

When the employees were asked who should conduct the performance
appraisal 24 percent employees wished that their superiors should take the
appraisal as it will be effective and reward oriented, 8 percent wished for
self appraisal, 4 percent said for external consultant, where as 48 percent
said there should be a combination of all and 16 percent employees said
they want a combination of superior and peer to conduct the appraisal
because this will yield an unbiased result.
8) Does appraisal help in polishing skills and performance area?

Options Response ( in % )
Yes 74
No 10
Somewhat 16

Response ( in % )

80
70
60
50
40 Response ( in % )
30
20
10
0
Yes No Somewhat

In the survey conducted it was observed that nearly 74 % of the respondents agree that
Performance Appraisal does leads to polishing the skills of the employees. Nearly 10 % of the
respondents view that it does not serve this purpose and around 16 % were not able to respond
as to whether it serve any such purposes or not. This shows that the employees are well
informed about the benefits of performance appraisal and take this in a positive way.

9) Does personal bias creeps-in while appraising an employee?

Options Response ( in % )

Yes 82
No 18

In the process of appraising, both the parties are human being, that is, the one who is being
apprised and the other who is appraising. Thus, there bound to be subjectivity involved, be it an
objective way of appraising.

Thus, when asked from among the sample size of 50 respondents, as huge as 82 %
respondended that personal bias do creep in while appraising an individual. Hence, it is
inevitable to say that personal likings do not come in the process of appraisal. It is the extent to
which the appraiser manages it so that it does not become very partial and bias . BSNL has to
work on a strategy to reduce this level of biasness.
10) If given a chance, would employees like to review the current
appraisal technique?

Options Response ( in % )

Yes 72

No 4

Can’t Say 24

72 percent of the employees agreed to review the current appraisal system

if given a chance, where as 4 percent said they will not like to review the
system if given chance and 24 percent of the employees went for cant say.
This shows that the employees are willing to take new responsibilities.
11) Appropriate method of conducting the performance appraisal?

Options Response ( in % )

Ranking Method 12

Paired Comparison 0

Critical Incidents 20

MBO 58

Assessment Centre 4

360 degree 6

Majority of the people were in favour of MBO as it is based on pure

performance and the success of the employees, so it is a kind of way to
fight favourism and biasness, next to it people wished for critical incident
method as it puts less pressure on the employees and is based on the
person’s ability. While 12, 6 and 4 percent of the employees went for
ranking method, 360 degree and assessment centers respectively. While no
one wished for paired comparison as this is very time consuming and in
effective one.
12) Does performance appraisal leads to identification of hidden potential

Options Response ( in % )

Yes 96

No 4

In response to this question a mojority percentage of 96 percent of the

employees went in fafour of the question where as only 4 percent of the
employees went against this question. This is because most of the
employees are educated enough and they knnow the benefits of the
appraisal system. And more over they understand that this is for their own
benefit.
FINDINGS

1. The employees showed a positive behaviour towards the implementation of

performance appraisal system as this helped them to increase their performance and
develop their skills.
2. The employees in BSNL have idea about the method of performance appraisal used.
3. The performance appraisal system is done in a repetitive way but needs to be done in
a
more serious and systematic way.
4. Many employees are not satisfied with the present appraisal system.
5. The Performance appraisal system is done on a continuous basis with a minimum
gap of 6 months.
6. A need a variety of appraisals are needed to carry out the performance appraisal in
the organisation.
7. Personal Biasness is present in the present performance appraisal system.
8. Employees feel that Management By Objectives (MBO) should be implemented
in the organisation.

SUGGESTIONS:

a. T h e v e r y c o n c e p t o f p e r f o r m a n c e a p p r a i s a l s h o u l d b e m a r k e t e d
throughout the organisation . Unless this is done people would not
accept it, be it how important to the organisation.
b. The performance appraisal method used should be confidential to give better results.
c. A more planned approach of performance appraisal system has to be implemented so
that every employee is appraised and no one is left out.
d. There should not be any biasness present in the appraisal system and neutral
appraisers are to be assigned with the task to perform the task to increase
effectiveness.
 e. There should be some time gap between the performance appraisal to give better
results.

f.