A Project Report On Training undertaken at Aviva life Insurance Company Titled Performance Appraisal Submitted in partial fulfillment for

the award of degree of MASTER OF BUSINESS ADMINISTRATION

Rajasthan Technical University, Kota (Raj.)

Submitted By KEHA KOMAL MBA III Sem

Submitted To Mrs. Deepti Hariramani Asst. Professor

ARYA COLLEGE OF ENGINEERING & I.T. KUKAS

Session 2011-2013
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PREFACE
As a part of course curriculum for award of MBA, we have to undergo practical training for minimum 45 working days after the 2nd sem. Practical training forms an important component of any professional course. The institute where we pursue our studies cannot provide the practical knowledge on all aspects of learning. Often the study of a subject is said to be incomplete until the student has been exposed to its practical aspects. The theoretical studies provide the pools of knowledge where as the practical application makes the student agile and competent. The underlying object of training is to provide the student with practical aspect of the organizational working and corporate environment. Such type of training helps the students to work in a real industrial environment, to gain practical knowledge and to build confidence. The idea & intention of taking training in this field to came up to me because of tremendous changes and scope in insurance services. As a part of this trend, I took my training at: AVIVA LIFE INSURANCE, JAIPUR. This project deals with analysis of various Insurance plans such as Protection, Investment, Pension Saving Plans Of AVIVA. Even though I tried to make efforts at my best there may be many mistakes, shortcoming in my project report which I hope will be forgiven by the reader .This report served as a means to share my personal experiences while working on this project which provided me the platform where I was face to face with practical aspects of theoretical knowledge gained so far.

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ACKNOWLEDGEMENT I would like to express my deep of gratitude to Aviva Life Insurance Company for allowing me to undertake this project. I would like to take this opportunity to thank Raj Utpal for providing me with an opportunity to work for Aviva Life Insurance Company. I am also desirous of mentioning my profound indebtedness to Mrs. Deepti Hariramani, Faculty member, Arya college of engineering and technology, for the valuable advice, guidance, precious time and support she offered. Last but not the least , I would also like to thank all the respondents forgiving me their precious time, relevant information and advice without which I would not be able to complete this project.

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EXECUTIVE SUMMARY Setting performance standards, observing and providing feedback, and conducting appraisals enables the Team Leader to achieve the best results through managing employee performance. To begin the process, the Team Leader and the employee collaborates on the development of performance standards. The Team Leader then develops a performance plan that directs the employee's efforts toward achieving specific results, to support organizational growth as well as the employee's professional growth. Discussion of goals and objectives throughout the year provides a framework to ensure that employees achieve results through One on One and mutual feedback. At the end of the rating period, the Team Leader appraises the employee's performance against existing standards, and establishes new goals together for the next rating period. As the immediate supervisor, the Team Leader plays an important role; his closest interaction with the employee occurs at this level. There are four key elements in the appraisal system: 1. Set objectives - Decide what the Team Leader wants from the employees and agree these objectives with them. 2. Manage performance - Give employees the tools, resources and training they need to perform well. 3. Carry out the appraisal - monitor and assess the employees' performance, discuss those assessments with them and agree on future objectives.

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CONTENTS

Sr. No. 1 2 3

TOPIC INTRODUCTION TO THE INDUSTRY INTRODUCTION TO THE ORGANISATION RESEARCH METHODOLOGY 3.1 3.2 3.3 3.4 TITLE OF THE STUDY DURATION OF THE STUDY OBJECTIVE OF THE STUDY SAMPLE SIZE METHOD OF SELECTING SAMPLE 3.5 3.6 3.7 RESEARCH METHODOLOGY SCOPE OF THE STUDY LIMITATION OF THE STUDY

PAGE NO.

4 5 6 7 8 9 10

FACTS AND FINDINGS ANALYSIS AND INTERPRETATION SWOT CONCLUSION RECOMMENDATION & SUGGESTIONS APPENDIX BIBLIOGRAPHY

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CHAPTER 1 INTRODUCTION TO THE INDUSTRY

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CHAPTER 1 INTRODUCTION TO INDUSTRY What is Insurance? Insurance is a contract between two parties whereby one party called insurer undertakes In exchange for a fixed sum called premiums, to pay the other party happening of a certain event. Insurance business is divided into four classes: 1) Life Insurance 2) Fire Insurance 3) Marine Insurance and 4) Miscellaneous To get insurance an individual or an organization can approach to an insurance Company directly, through Insurance Agent of the concerned company or through Intermediaries. Every asset has a value for its owner and also for those who are benefited with the existence of that asset. Insurance is concerned with the protection of economic value of assets. All of us are interested in the creation of assets because: i. ii. iii. iv. All assets have values. They yield income to the owner. They meet some other needs of the owner. They may provide satisfaction of some needs and also yield income to the owner. Every asset has normally an expected lifetime. During this period, it is expected to perform and provide income/comfort to the owner. The owner, being aware of this, plans the things in such a way that by the time the expected lifetime of the asset expires, he is ready with the
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funds required for its replacement. In this way, he ensures that the value or income from the asset is not lost. Well, this appears to be a fine arrangement provided the asset completes its expected lifetime! All assets carry the risk of being destroyed or damaged. But all assets may not necessarily get destroyed or damaged. Only in a few instances, the probability turns out to be true and the asset gets actually lost or destroyed by accident or some other unfortunate event before the completion of its expected lifetime. The owner and those deriving benefits from the asset will suffer because the arrangement to make available its substitute is not yet ready. Insurance is helpful in mitigating such adverse consequences. To sum up, assets are insured; as they are likely to be lost or made non-functional through an accidental occurrence. Insurance does not protect the assets. This means that insurance cannot prevent loss to the assets due to perils. Nor can insurance avoid the occurrence of the perils. It only compensates, may not be fully, the economic or financial loss resulting to the asset from such damage or destruction. Brief History of Insurance The beginning of insurance business is traced to the city of London. It started with the marine business. Marine traders, who used to gather at Lloyds coffee house in London, agreed to share losses to goods during transportation by ship. Marine related losses included: Loss of ship by sinking due to bad weather in high seas. Goods in transit by ship robbed by sea pirates.

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 Loss of or damage to the goods in transit by ship due to bad weather in high seas. The first insurance policy was issued in England in 1583. Life Insurance in India In India, insurance started with life Insurance. It was in the early 19th Century when the Britishers on their postings in India felt the need of life insurance cover. It started with English Companies like The European and the Albert. The First Indian insurance company was the Bombay Mutual Assurance Society Ltd., formed in 1870. In the wake of the Swadeshi Movement in India in the early 1900s, quite a good number of Indian companies were formed in various parts of the country to transact insurance business. To name a few:: Hindustan Co-operative and National Insurance in Kolkata; United India in Chennai; Bombay Life, New India and Jupiter in Mumbai and Lakshmi Insurance in New Delhi. Indian Insurance Industry-Introduction India is the largest democracy in the world having a population more than one million. It is 5th largest in the world in terms of purchasing power parity (PPP). India GDP growth rate is over 6 percent per year on average for the last decade and saving rate is around 26 percent of GDP. Through Indias economic development, it becomes the most lucrative insurance markets in the world. Before the year 1999 there were monopoly of state run Life Insurance Corporation of India (LIC) in life insurance sector and General Insurance Corporation of India (GIC) with its four subsidiaries in general sector. In the wake of reform pro9|Page

cess and passing Insurance Regulatory Development Act (IRDA) through Indian Parliament in 1999, Indian Insurance was opened for private companies. Nationalization of Life Insurance in India In 1956, life insurance business was nationalized. The government took over the business of 245 companies (including 75 provident fund societies) who were transacting life insurance business at that time Purpose and Need for Insurance Assets are likely to be destroyed or made non-functional due to accidental occurrences called perils. Assets can, therefore, be insured. A few examples of perils are: fire, floods, breakdowns, lightning, earthquake etc. Perils are the events. Risks are the consequential losses or damages.

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CHAPTER 2 INTRODUCTION TO THE ORGANIZATION COMPANY PROFILE Aviva is UKs largest and the worlds fifth largest insurance Group. It is one of the leading providers of life and pensions products to Europe and has substantial businesses elsewhere around the world. With a history dating back to 1696, Aviva has a 35 million-customer base worldwide. It has more than 332 billion of assets under management. In India, Aviva has a long history dating back to 1834. At the time of nationalisation it was the largest foreign insurer in India in terms of the compensation paid by the Government of India .Aviva was also the first foreign insurance company in India to set up its representative office in 1995.In India, Aviva has a joint venture with Dabur, one of India's oldest, and largest Group of companies. A professionally managed company, Dabur is the country's leading producer of traditional healthcare products. In accordance with the government regulations Aviva holds a 26 per cent stake in the joint venture and the Dabur group holds the balance 74 per cent share. With a strong sales force of over 12,000 Financial Planning Advisers (FPAs), Aviva has initiated an innovative and differentiated sales approach to the business. Through the Financial Health Check (FHC) Avivas sales force has been able to establish its credibility in the market. The FHC is a free service administered by the FPAs for a need-based analysis of the customers long-term savings and insurance needs. Depending on the life stage and earnings of the customer, the FHC assesses and recommends the right insurance product for them. Aviva pioneered the concept of Banc assurance in
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India, and has leveraged its global expertise in Banc assurance successfully in India. Currently, Aviva has Banc assurance tie-ups with ABN Amro Bank, American Express Bank, Canara Bank, Centurion Bank of Punjab, The Lakshmi Vilas Bank Ltd. and Punjab & Sind Bank, 15 Co-operative Banks in Gujarat, Rajasthan, Jammu & Kashmir, Bihar, West Bengal and Maharashtra and one regional Bank in Sikkim. When Aviva entered the market, most companies were offering traditional life products. Aviva started by offering the more modern Unit Linked and Unitised With Profit products to the customers, creating a unique differentiation. Avivas products have been designed in a manner to provide customers flexibility, transparency and value for money. It has been among the first companies to introduce the more modern Unit Linked Products in the market. Its products include: whole life (Life Long), endowment (Life Saver, Easy Life Plus), and child policy (Young Achiever) single premium (Life Bond and Life Bond Plus), Pension (Pension Plus), Term (Life Shield), fixed term protection plan (Freedom Life Plan) and a tax efficient investment plan with limited premium payment term (LifeBond5). Aviva products are modern and contemporary unitised products that offer unique customer benefits like flexibility to chose cover levels, indexation and partial withdrawals. Avivas Fund management operation is one of its key differentiators. Operating from Mumbai, Aviva has an experienced team of fund managers and the range of fund options includes Unitised With-Profits Fund and four Unit Linked funds: - Protector Fund, Secure Fund, Balanced Fund and Growth Fund. Aviva has 112 Branches in India (including rural branches) supporting its distribution network. Through its Bancassurance partner locations, Aviva products are available in 378 towns and cities
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across India. Aviva is also keen to reach out to the underprivileged that have not had access to insurance so far. Through its association with Basix (a micro financial institution) and other NGOs, it has been able to reach the weaker sections of the society and provide life insurance to them. For three consecutive years in 2005, 2006 and 2007, Aviva has had relatively high scores on the parameters of Credibility, Respect, Fairness, Pride and Camaraderie in the survey administered by Grow Talent Company Ltd. along with Great Places to Work Institute, Inc. and Business World magazine. Introduction to Appraisal Once the employee has been selected, trained and motivated, he is then appraised for his performance. Performance Appraisal is the step where the Management finds out how effective it has been at hiring and placing employees. If any problems are identified, steps are taken to communicate with the employee and remedy them. Performance Appraisal is a process of evaluating an employee performance in terms of its requirements. Performance Appraisal can also be defined as 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. 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 per14 | P a g e

forming 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 employees behaviour as part of the assessment. Behaviour can be active or passive--do something or do nothing. Either way behaviour affects job results. The other terms used for performance appraisal arc: performance rating, employee assessment Importance and Purpose Performance Appraisal has been considered as the most significant an indispensable tool for an organization, for an organization, for the information it provides is highly useful in making decisions regarding various personnel aspects such as promotion and merit increases. Performance measures also link information gathering and decision making processes which provide a basis for judging the effectiveness of personnel sub-divisions such as recruiting, selection, training and compensation. Accurate information plays a vital role in the organization as a whole. They help in finding out the weaknesses in the primary areas. Formal Performance Appraisal plans are designed to meet three needs, one of the organization and the other two of the individual namely: They provide systematic judgments to back up salary increases, transfers, demotions or terminations. They are the means of telling a subordinate how he is doing and suggesting needed changes in his behaviour, attitudes, skills or job knowledge. They let him know where he stands with the Boss.
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 Superior uses them as a base for coaching and counselling the individual. On the basis of merit rating or appraisal procedures, the main objectives of Employee Appraisal are: To enable an organization to maintain an inventory of the number and quality of all managers and to identify and meet their training needs and aspirations. To determine increment rewards and to provide reliable index for promotions and transfers to positions of greater responsibility. To suggest ways of improving the employee s performance when he is not found to be up to the mark during the review period To identify training and development needs and to evaluate effectiveness of training and development programmes. To plan career development, human resource planning based potentials
PERFORMANCE APPRAISAL STRUCTURE IN THE ORGANIZATION

Summary of the Performance Analysis System Setting performance standards, observing and providing feedback, and conducting appraisals enables the Team Leader to achieve the best results through managing employee performance. To begin the process, the Team Leader and the employee collaborates on the development of performance standards. The Team Leader then develops a performance plan that directs the employee's efforts toward achieving specific results, to support organizational growth as well as the employee's professional growth. Discussion of goals and objectives throughout the year provides a framework to ensure that employees achieve results through One on One and mutual feedback. At the end
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of the rating period, the Team Leader appraises the employee's performance against existing standards, and establishes new goals together for the next rating period. As the immediate supervisor, the Team Leader plays an important role; his closest interaction with the employee occurs at this level. There are four key elements in the appraisal system: 1. Set objectives - Decide what the Team Leader wants from the employees and agree these objectives with them. 2. Manage performance - Give employees the tools, resources and training they need to perform well. 3. Carry out the appraisal - monitor and assess the employees' performance, discuss those assessments with them and agree on future objectives. 4. Provide rewards/remedies - Consider pay awards and/or promotion based on the appraisal and decide how to tackle poor performance Performance Standards How does the Team Leader decide what's acceptable and what's unacceptable performance? The answer to this question is the first step in establishing written standards. Performance expectations are the basis for appraising employee performance. Written performance standards let the Team Leader to compare the employee's performance with mutually understood expectations and minimize ambiguity in providing feedback.

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Having performance standards is not a new concept; standards exist whether or not they are discussed or put in writing. When the Team Leader observes an employee's performance, he usually makes a judgment about whether that performance is acceptable. Standards identify a baseline for measuring performance. From performance standards, the Team Leader can provide specific feedback describing the gap between expected and actual performance. Guiding Principles Effective performance standards: Serve as an objective basis for communicating about performance. Enables the employee to differentiate between acceptable and unacceptable results. Increase job satisfaction because employees know when tasks are performed well. Inform new employees of your expectations about job performance

The Team Leaders in association with the Project Manager write performance standards for each key area of responsibility on the employee's job description. The employee actively participates in its development. Standards are usually established when an assignment is made, and they are reviewed if the employee's job description is updated. The discussions of standards include the criteria for achieving satisfactory
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performance and the proof of performance (methods the Team Leader will use to gather information about work performance).

Characteristics of Performance Standards Standards describe the conditions that must exist before the performance can be rated satisfactory. A performance standard should: Be realistic, in other words, attainable by any qualified, competent, and fully trained person who has the authority and resources to achieve the desired result Describe the conditions that exist when performance meets expectations Be expressed in terms of quantity, quality, time, cost, effect, manner of performance, or method of doing Be measurable, with specified method(s) of gathering performance data and measuring performance against standards

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CHAPTER 3 RESEARCH METHODOLOGY 3.1 Title of the study: To ascertain the effectiveness of Performance Appraisal methodology used by the Organization. 3.2 Duration of the Study: The duration of the project is 45 days. 3.3 Objectives of the Study: The various objectives of our research are as follows: To examine why an appraisal system is important. To study existing appraisal system in various organizations across sectors like BPO, IT & Telecom. To find the expectation of appraiser and appraisee To determine the satisfaction level of the appraisee To reveal the various loopholes in the appraisal system if any To find the consequences of an inappropriately conducted appraisal system

3.4 Scope of the Study It is a systematic procedure of collecting information in order to analyze and verify a phenomenon.The collection of information has been done through two major sources: 1. Primary Data. 2. Secondary Data.

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Collection of Primary Data during the course of the study or research can be through observations or through direct communication with respondents on one form or another or through personal interviews. I have collected primary data by the means of a Questionnaire. The Questionnaire was formulated keeping in mind the objectives of the research study. Secondary data means data that is already available i.e., they refer to data, which has already been collected and analyzed by someone else. When a secondary data is used, the researcher has to look into various sources from where he can obtain data. This includes information from various books, periodicals, magazines etc. 3.5 Research Design A research design is a type of blueprint prepared on various types of blueprints available for the collection, measurement and analysis of data. A research design calls for developing the most efficient plan of gathering the needed information. The design of a research study is based on the purpose of the study. A research design is the specification of methods and procedures for acquiring the information needed. It is the overall pattern or framework of the project that stipulates what information is to be collected from which source and by what procedures. 3.6 Sampling An integral component of a research design is the sampling plan. Specifically, it addresses three questions Whom to survey (The Sample Unit) How many to Survey (The Sample Size) & How to select them (The Sampling Procedure)
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 Making a census study of the whole universe will be impossible on the account of limitations of time. Hence sampling becomes inevitable. A sample is only a portion of the total employee strength. According to Yule, a famous statistician, the object of sampling is to get maximum information about the parent population with minimum effort.

Methods of Sampling Probability Sampling is also known as random sampling or chance sampling .Under this sampling design every individual in the organization has an equal chance, or probability, of being chosen as a sample. This implies that the section of sample items is independent of he persons making the study that is, the sampling operation is controlled objectively so that the items will be chosen strictly at random. Non Probability Sampling is also known as deliberate sampling , purposeful and judgmental sampling. NonProbability Sampling is that which does not provide every individual in the Organization with a known chance of being included in the sample. Research Methodology Adopted Research Design : Descriptive research Research Instrument : Structured Questionnaire Sampling Plan i) Sample Method : ii) Sample Size :
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Non-Probability Sampling 50

iii) Sample Unit :

Employees who do not hold a supervisory position

Sampling Design Convenience Sampling, as the name implies, is based on the convenience of the researcher who is to select a sample. Respondents in the sample are included in it merely on account of their being available on the spot where the survey was in progress. Source of Data a) Primary Data : b) Secondary Data : etc. 3.7Limitations of the Study: The time period for the project was limited to only one and half month and information provided is limited to the extent of internet and journals. Some of the persons were not so responsive. Possibility of error in data collection because many of employees may have not given actual answers of my questionnaire. Structured Questionnaire Journals, Booklets, Company Data,

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CHAPTER 4 FACTS AND FINDINGS Findings from Appraisee Survey

1. Expectations from Appraisal System :

Expectation from Appraisal System

An insight into your strengths and weakness Guideline for training Plan Assistance in goal Decision on layoff Determination of promotion or transfer Salary Administration and Benefits 0 50 87 100 150 200 250 300 350 400 109 254 228 354 Score 312

Respondents were asked to rank the various options according to their preference. (Rank 1 being most preferred and rank 6 being least preferred). Then scoring was given on the basis of ranks. 1 mark was allotted to rank 1, 2 marks for rank 2 and so on.

Particular

Score

Overall Rank

Salary Administration and Benefits Determination of promotion or transfer Assistance in goal Guideline for training plan An insight into your strengths and

87 109

1 2

228 254 312

3 4 5

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weakness Decision to layoff 354 6

From the above table it can be seen that employees expect Salary Administration and Benefits to be the main reason for conducting a Performance Appraisal. Decision to layoff is of least importance as per the appraisee. 2. Awareness about Responsibilities :

No 14%

Awareness about Responsibilities

Yes 86%

From the graph it can be seen that majority of employees are aware about their responsibilities, which implies that the appraisers have efficiently communicated to the appraisees all the parameters that will be taken into account during appraisal.

3. Satisfaction Level among appraise regarding Appraisal System :

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Satisfaction Level
5% 2% 23% 28% Fully Dissatisfied Partially Dissatisfied Satisfied 42% Partially satisfied Fully satisfied

From graph it can be seen that majority of the respondents are satisfied with the appraisal system. Only a meager 30% were dissatisfied with the Performance Appraisal programs.

4. Awareness about performance ratings :

Awarness about Performance Rating

Yes 34% No 66%

This clearly shows that majority of the employees are not aware about the performance ratings that are taken into account while conducting a performance appraisal.

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5. Alowing Self ratings :

No 8%

Self Rating Should be allowed

Yes 92%

From graph it can be seen that majority of respondents want self rating to be a method of conducting the appraisals .

6. Chance to rate your own performance

Rate your own performance

Yes 23% No 77%

From the graph we can see that majority of the employees are not given a chance to rate their own performance in the organization.

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7. Timing of Appraisals

Timing of Appraisal
2% 3% 11% Monthly Quaterly 84% Half Yearly Annual

This shows that most of the organisations conduct their Performance Appraisal programs annually. A very small percentage of the organisations conduct Performance Appraisals on a half yearly basis. The share of the quarterly and monthly appraisals are extremely minimal.

8. Credibility of Appraiser

Credibility of Appraiser
37% Yes 63% No

This shows that according to the employees/appraisees the credibility of the appraiser is extremely important and it has an effect on the overall Performance appraisal program. 29 | P a g e

9. Complaint channel for employees

Complaint Channel for employees

27% Yes 73% No

This shows that there is no proper complaint channel existing in the organisations for the employees who are dissatisfied with the performance appraisal system.

10. Standards communicated to employees

Standards Communicated to Employees

36% Yes 64% No

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From this it can be seen that there is a clear majority among the employees who say that the standards on the basis of which the performance appraisal is carried out is not communicated to the employees before hand.

11. Performance Appraisal

Performance Appraisal
0% 0% 9% 0% Immediate Supervisor Peer appraisal 91% Rating committee Self Rating

Almost all the Performance Appraisals are carried our by the Immediate Supervisor in these organisations. In very few organisations, Rating committees carry out the performance appraisals. None of the organisations use Peer Appraisals, Appraisals by subordinates and Self rating as a method of Performance Appraisal.

12. Clear understanding of Appraisees job

Clear understanding of Appraisee's Job

23% Yes 77% No

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This shows that the performance Appraisal programs are successful in giving a clear understanding of the appraisees job to both appraiser and appraisee.

13. Objectives of Appraisal System

Objective of Appraisal System

50%

50% Yes No

From the figure we can derive that the objective for conducting the Appraisal system is clear only to half of the employees. The remaining half are not clear about the objective for which the Performance Appraisal is carried out. 14. Good communication between top management and business goals

Good communication between Top management and Business goal

22% Yes 78% No

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This shows that the appraisal systems do not provide a good communication flow of the top-management plans and business goals to the staff below.

15. Comments and suggestions to be considered

Comments and suggestion to be considered

2%

Yes 98% No

Almost all the employees expect that their comments and suggestions should be taken into consideration while conducting the Performance Appraisal.

16. Post Appraisal interview

Post Appraisal Interview

30% Yes 70% No

As per the response from the employees we can see that there is no interview conducted after the appraisal program for majority of the employees.

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Findings from Appraiser Survey

1. Purpose of Appraisal

Purpose of Appraisal System

Score An insight into your strengths and weakness Guideline for training Plan Assistance in goal Decision on layoff Determination of promotion or transfer Salary Administration and Benefits 24 27 42 69 72 81

Respondents were asked to rank the various options according to their preference. (Rank 1 being most preferred and rank 6 being least preferred). Then scoring was done on basis of these ranks. 1 mark was allotted to rank 1, 2 marks for rank 2 and so on. Then the total score for each purpose was calculated and overall ranking was given. Particular Score Overall Rank Determination of promotion or transfer Salary Administration and Benefits Decision to layoff Guideline for training plan Assistance in goal An insight into your strengths and weakness 27 42 69 72 81 2 3 4 5 6 24 1

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From table it can be seen that appraiser considers Determination of promotion or transfer & Salary administration and Benefits as two important factors for conducting an Appraisal.

2. Appraisal System

Appraisal System
0% 0% 13% 27% 1 2 3 60% 4 5

In this question appraiser was asked to rate how helpful the appraisal system is, from the graph it can be seen that majority of appraisers have rated 5,4 & 3 which implies that Performance Appraisal system is very helpful in Planning their work. Also most of the appraisers are satisfied with the appraisal system.

3. Support from subordinate

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Support from Subordinate

0%

Yes No 100%

This question was asked to find out how helpful appraisal system is in communicating the support that apprasier needs from appraisee. From results it is seen that the performance appraisal system is very helpful in communicating the support and help needed by the appraiser from the appraisee.

4. Type of Appraisal System

Type of Appraisal System

0% 0% 14% 13% Assessment centre MBO BARS 360 degree feedback

73%

From results its clear that majority of companies prefer to use 360 degree feedback system for Performance Appraisal. As 360 degree feedback gives feedback of appraisee from everyone interacting with him, it is more reliable and hence most preferred.

5. Performance Appraisal criteria 36 | P a g e

Performance Appraisal criteria

20% 20% Quantitative outcome criteria Qualitative process criteria Quantitative process criteria

60%

From results we can see that Qualitative Process is considered as the most important criteria for which the Performance appraisal programs are carried out, which shows that companies consider Qualitiy of product & service and Customer satisfaction as most important factors.

6. Timing of Appraisals

Timing of Appraisal
0% 0% 0% 13% Annual Quaterly Half Yearly 87% Monthly Anytime

From graphs we can see that most of companies conduct appraisals on annual basis. Some companies conduct quaterly also. 37 | P a g e

7. Effect of poor Appraisal System

Effect of Poor Appraisal System

27% 0% 73% Ineffective teamwork De-motivation Retention

It can be seen from results that most of the employees get De-motivated because of a poorly conducted appraisal. To some extent employees dont coordinate with their team members. Thus resulting in reduction of output.

8. Communication between top management and staff

Good Communication between Top Management and Staff

0% Yes 100% No

All appraisers totally agree that performance appraisal helps in communicating the top management plans and business goals to staff at lower level.

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Insight into Appraisee's Strength and weakness

33% Yes 67% No

It is evident from the results that performance appraisal system doesnt help the appraiser in understanding strength and weakness of apraisee.

10. Appraisees comment and suggestion

Appraisee's comment & suggestion

13%

Yes 87% No

From the results it can be seen that appraisees comments and suggestion are not taken into consideration before Performance Appraisal. Performance Appraisal system is designed by appraiser without consulting appraisee. 11. Performance Appraisal

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Performance Appraisal
0% 0% Immediate supervisor Peer appraisal Rating committees Self-rating

100%

It is evident from the results that performance appraisal is conducted by the Immediate Supervisor in all the companies. 12. Understanding of Apprasiees Job

Understanding of Appraisee's Job

0%

Yes 100% No

From this it is clearly seen that according to appraiser there is a clear and joint understanding of the appraisees job. 13. Standards for Performance Appraisal

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Standards for Performance Appraisal

13%

Yes 87% No

From results it is evident that Performance appraisal standards are very well communicated to Appraisee before the Appraisal is carried out.

14. Self rating in Performance Appraisal

Self Rating in Performance Appraisal

0%

Yes 100% No

From results it can be clearly seen that the Appraisee is not given a chance to rate his own performance. 15. Action after Performance Appraisal

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Action after Performance Appraisal

0%

Yes 100% No

This shows that most of the companies act upon the results of their Performance Appraisal program. 17. Expectations from Appraisal System :

Expectation from Appraisal System

An insight into your strengths and weakness Guideline for training Plan Assistance in goal Decision on layoff Determination of promotion or transfer Salary Administration and Benefits 0 50 87 100 150 200 250 300 350 400 109 254 228 354 Score 312

Respondents were asked to rank the various options according to their preference. (Rank 1 being most preferred and rank 6 being least preferred). Then scoring was given on the basis of ranks. 1 mark was allotted to rank 1, 2 marks for rank 2 and so on.

Particular 42 | P a g e

Score

Overall

Rank Salary Administration and Benefits Determination of promotion or transfer Assistance in goal Guideline for training plan An insight into your strengths and weakness Decision to layoff 354 6 228 254 312 3 4 5 87 109 1 2

From the above table it can be seen that employees expect Salary Administration and Benefits to be the main reason for conducting a Performance Appraisal. Decision to layoff is of least importance as per the appraisee. 18. Awareness about Responsibilities :

No 14%

Awareness about Responsibilities

Yes 86%

From the graph it can be seen that majority of employees are aware about their responsibilities, which implies that the appraisers have efficiently communicated to the appraisees all the parameters that will be taken into account during appraisal.

19. Satisfaction Level among appraise regarding Appraisal System :

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Satisfaction Level
5% 2% 23% 28% Fully Dissatisfied Partially Dissatisfied Satisfied 42% Partially satisfied Fully satisfied

From graph it can be seen that majority of the respondents are satisfied with the appraisal system. Only a meager 30% were dissatisfied with the Performance Appraisal programs.

20. Awareness about performance ratings :

Awarness about Performance Rating

Yes 34% No 66%

This clearly shows that majority of the employees are not aware about the performance ratings that are taken into account while conducting a performance appraisal.

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21. Alowing Self ratings :

No 8%

Self Rating Should be allowed

Yes 92%

From graph it can be seen that majority of respondents want self rating to be a method of conducting the appraisals .

22. Chance to rate your own performance

Rate your own performance

Yes 23% No 77%

From the graph we can see that majority of the employees are not given a chance to rate their own performance in the organization.

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23. Timing of Appraisals

Timing of Appraisal
2% 3% 11% Monthly Quaterly 84% Half Yearly Annual

This shows that most of the organisations conduct their Performance Appraisal programs annually. A very small percentage of the organisations conduct Performance Appraisals on a half yearly basis. The share of the quarterly and monthly appraisals are extremely minimal.

24. Credibility of Appraiser

Credibility of Appraiser
37% Yes 63% No

This shows that according to the employees/appraisees the credibility of the appraiser is extremely important and it has an effect on the overall Performance appraisal program. 46 | P a g e

25. Complaint channel for employees

Complaint Channel for employees

27% Yes 73% No

This shows that there is no proper complaint channel existing in the organisations for the employees who are dissatisfied with the performance appraisal system.

26. Standards communicated to employees

Standards Communicated to Employees

36% Yes 64% No

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From this it can be seen that there is a clear majority among the employees who say that the standards on the basis of which the performance appraisal is carried out is not communicated to the employees before hand.

27. Performance Appraisal

Performance Appraisal
0% 0% 9% 0% Immediate Supervisor Peer appraisal 91% Rating committee Self Rating

Almost all the Performance Appraisals are carried our by the Immediate Supervisor in these organisations. In very few organisations, Rating committees carry out the performance appraisals. None of the organisations use Peer Appraisals, Appraisals by subordinates and Self rating as a method of Performance Appraisal.

28. Clear understanding of Appraisees job

Clear understanding of Appraisee's Job

23% Yes 77% No

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This shows that the performance Appraisal programs are successful in giving a clear understanding of the appraisees job to both appraiser and appraisee.

29. Objectives of Appraisal System

Objective of Appraisal System

50%

50% Yes No

From the figure we can derive that the objective for conducting the Appraisal system is clear only to half of the employees. The remaining half are not clear about the objective for which the Performance Appraisal is carried out. 30. Good communication between top management and business goals

Good communication between Top management and Business goal

22% Yes 78% No

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This shows that the appraisal systems do not provide a good communication flow of the top-management plans and business goals to the staff below.

31. Comments and suggestions to be considered

Comments and suggestion to be considered

2%

Yes 98% No

Almost all the employees expect that their comments and suggestions should be taken into consideration while conducting the Performance Appraisal.

32. Post Appraisal interview

Post Appraisal Interview

30% Yes 70% No

As per the response from the employees we can see that there is no interview conducted after the appraisal program for majority of the employees.

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Duration for which the respondent has been working in Aviva Life Insurance. This question was asked to the employees working in AIL to find out the duration for which they have been working in the organization, based upon which we can know if the employees are satisfied with their job in the company or not. Table 4: Duration of work period in Aviva Life Insurance.
Particulars 0-1 yrs 1-5 yrs 5-10 yrs 10+ yrs Total No. of respondents 2 26 13 9 50 Percentage of respondents 4% 52% 26% 18% 100%

Chart 5: Duration of work in AIL.

30 25 20 15 10 5 0 0-1 yrs 1-5 yrs 5-10 yrs 10+ yrs
no. of respondents

4 percent of the respondents are dealing with AIL for less than a year. 52 percent of the respondents are dealing in AIL from 1-5 yrs. 26 per51 | P a g e

cent of the respondents are dealing in AIL from 5-10 yrs. 18 percent of the respondents are dealing in AIL for over 10 yrs.

Extent of satisfaction in setting goals/objectives in the beginning of the year. This question was asked to the employees of AIL to find out the extent of satisfaction of the employees in setting goals/objectives in the beginning of the year to know if they are being given opportunities to express their views.
Table 5: Extent of satisfaction

Particulars Very satisfied Satisfied Dissatisfied Total

No. of respondents 33 13 4 50

Percentage of respondents 66% 26% 8% 100%

Chart 6: Extent of satisfaction.

35 30 25 20 15 10 5 0 very satisfied satisfied dissatisfied

no. of respondents

66 percent of the respondents are very satisfied in setting their goals and objectives in the beginning of the year. 26 percent of the respond52 | P a g e

ents are satisfied in setting their goals and objectives in the beginning of the year. 8 percent of the respondents are dissatisfied in setting their goals and objectives in the beginning of the year. Ratings of the PA strategies and programmes in the company. This question was asked to the employees of AIL to rate the standard of various PA strategies and programmes that take place in the organization.
Table 6: Ratings of PA strategies.
Particulars Good Average Bad Total No. of respondents 35 15 0 50 Percentage of respondents 70% 30% 0% 100%

Chart 7: Ratings of PA strategies.

35 30 25 20 15 10 5 0 Good Average Bad
no. of respondents

70 percent of the respondents rate the Performance Appraisal strategies as good. 30 percent of the respondents rate the Performance Ap53 | P a g e

praisal strategies as average. None of the respondents rates the Performance Appraisal strategies as bad.

Performance Appraisal strategies are fair and objective. This question was asked to the employees to know if the performance appraisal strategies are fair and objective to the employees.
Table 7: PA strategies are fair or not.
Particulars Yes No Cant say Total No. of respondents 42 8 0 50 Percentage of respondents 84% 16% 0% 100%

Chart 8: PA strategies are fair or not.

50 40 30 20 10 0 Yes No Can't say
no. of respondents

84 percent of the respondents say that the Performance Appraisal strategies are fair and objective. 16 percent of the respondents say that
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the Performance Appraisal strategies are not fair and objective. None of the respondents are there who cant say anything. It is necessary to appraise an employee. This question was asked to the employees to know how important it is to appraise an employee.
Table 8: Necessity to appraise an employee.

Particulars Yes No Total

No. of respondents 50 0 50

Percentage of responders 100% 0% 100%

Chart 9: Necessity to appraise an employee.

50 40 30 20 10 0 Yes No
no. of respondents

100 percent of the respondents say that it is necessary to appraise an employee. None of the respondents says that it is necessary to appraise an employee.
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There is clarity in what is expected from the employee. This question was asked to the employees to know if they are made clear on what is expected of them so that they can work accordingly.
Table 9: Clarity in what is expected from the employee.
Particulars Yes No Total No. of respondents 50 0 50 Percentage of responders 100% 0% 100%

Chart 10: Clarity in what is expected from the employee.

50 40 30 20 10 0 Yes No
no. of respondents

100 percent of the respondents say that they are clear with what is expected of them. None of the respondents say that they are not clear with what is expected of them. Feedback is given to the Management Cadre Staff for the task accomplished by them.

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This question was asked to the employees to know if they are provided with proper feedback for the task they accomplish, based upon which they can work better in future.
Table 10: Feedback is given to MCS.
Particulars Yes No Total No. of respondents 31 19 50 Percentage of responders 62% 38% 100%

Chart 11: Feedback is given to MCS.

35 30 25 20 15 10 5 0 Yes No
no. of respondents

62 percent of the respondents say that the feedback is given to the MCS for the task accomplished by them. 38 percent of the respondents say that the feedback is not given to the MCS for the task accomplished by them.

Suggestions and innovations are rewarded. This question was asked to the employees to know if they are motivated by accepting their suggestions and innovations in the form of rewards.
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Table 11: Suggestions and innovations are rewarded.

Particulars Yes No Total No. of respondents 17 33 50 Percentage of responders 34% 66% 100%

Chart 12: Suggestions and innovations are rewarded.

35 30 25 20 15 10 5 0 Yes No
no. of respondents

34 percent of the respondents say that their suggestions and innovations are rewarded. 66 percent of the respondents say that their suggestions and innovations are not rewarded. Supervisors take interest in sharing an employees personal concern.

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This question was asked to the employees to know if the employees problems are dealt well by their supervisors so that their morale increases and they are satisfied with their job.
Table 12: Supervisors share an employees personal concern.
Particulars Yes No Total No. of respondents 36 14 50 Percentage of responders 72% 28% 100%

Chart 13: Supervisors share an employees personal concern.

40 35 30 25 20 15 10 5 0 Yes No
no. of respondents

72 percent of the respondents say that the supervisors take interest in sharing their personal concern. 28 percent of the respondents say that the supervisors do not take interest in sharing their personal concern. Annual increments/promotions are based on performance. This question was asked to the employees to know if the annual increments/promotions are based on their performance or not.
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Table 13: Increments & promotions based on performance.

Particulars Yes No Cant say Total No. of respondents 41 7 2 50 Percentage of responders 82% 14% 4% 100%

Chart 14: Increments & promotions based on performance.

45 40 35 30 25 20 15 10 5 0 Yes No Can't say

no. of respondents

82

percent

of

the

respondents

say

that

the

annual

incre-

ments/promotions are based on their performance. 14 percent of the respondents say that the annual increments/promotions are not based on their performance. 4 percent of the respondents cant say or their answers are inapplicable. Extent of satisfaction in interdepartmental teamwork.

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This question was asked to the employees to know the extent of satisfaction in interdepartmental teamwork based on which their effectiveness in work can be known.
Table 14: Satisfaction in inter departmental team work.
Particulars Very satisfied Satisfied Dissatisfied Total No. of respondents 14 25 11 50 Percentage of responders 28% 50% 22% 100%

Chart 15: Satisfaction in inter departmental team work.

25 20 15 10 5 0 very satisfied satisfied dissatisfied

no. of respondents

28 percent of the respondents are very satisfied with interdepartmental teamwork. 50 percent of the respondents are just satisfied with interdepartmental teamwork. 22 percent of the respondents are dissatisfied with interdepartmental teamwork. Extent of help of training and development programmes in improving employees performance.
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This question was asked to the employees to know how far the training and development programme is helping the employees to learn and work better.
Table 15:
Particulars To great extent To some extent To very little extent Total No. of respondents 11 35 4 50 Percentage of responders 22% 70% 8% 100%

Chart 16:
35 30 25 20 15 10 5 0 great extent some extent very little extent
no. of respondents

22 percent of the respondents say that the training and development programmes help to a great extent to improve their performance. 70 percent of the respondents say that the training and development programmes help to some extent to improve their performance. 8 percent of the respondents say that the training and development programmes help to a very little extent to improve their performance.

Performance Appraisal System is used in job rotation.

This question was asked to the employees to know the extent of use of performance appraisal system in job rotation.

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Table 16:
Particulars Mostly Partially Nil Total No. of respondents 6 44 0 50 Percentage of responders 12% 88% 0% 100%

Chart 17:
45 40 35 30 25 20 15 10 5 0 Mostly Partially Nil

no. of respondents

12 percent of the respondents say that performance appraisal system is mostly used in job rotation. 88 percent of the respondents say that performance appraisal system is partially used in job rotation. None of the respondents say that performance appraisal system is not at all used in job rotation. Extent of the purpose of performance appraisal system being fulfilled. This question was asked to the employees to know how far the performance appraisal system is actually helping them in their work.

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Table 17:
Particulars No. of respondents Completely Partially Total 39 11 60 Percentage of responders 78% 22% 100%

Chart 18:
40 35 30 25 20 15 10 5 0 Completely Partially
no. of respondents

78 percent of the respondents say that the purpose of performance appraisal is completely fulfilled. 22 percent of the respondents say that the purpose of performance appraisal is partially fulfilled. AIL always strives for continuous individual improvements. This question was asked to the employees to know how far they agree with the fact that AIL always strives for continuous individual improvements.
Table 18:
Particulars 64 | P a g e No. of respondents Percentage of responders

Strongly agree Agree Disagree Strongly disagree Total

11 29 8 2 50

22% 58% 16% 4% 100%

Chart 19:
30 25 20 15 10 5 0 Strongly agree Agree Disagree Strongly disagree
no. of respondents

22 percent of the respondents strongly agree that AIL always strives for continuous individual improvements. 58 percent of the respondents agree that AIL always strives for continuous individual improvements. 16 percent of the respondents disagree that AIL always strives for continuous individual improvements. 4 percent of the respondents strongly disagree that AIL always strives for continuous individual improvements.

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CHAPTER5 ANALYSIS AND INTERPRETATION Male / Female ratio within the selected sample

Female

Male

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Data Males 24 Females 26 Analysis There is equality in terms of the ratio between males and females in. This can also be as Aviva life Insurance ertained from the fact that the same ratio is present among the total strength of 350+ employees in the company. The sample was carefully chosen to ensure that the study gave an equal opportunity to both the sections to voice their opinion and there gain a truer picture of the conclusions derived by the study. The balance of both the genders in the Organization also gives rise to a good work atmosphere and better understanding between the employees. This trend can also be witnessed in the supervisory ranks of Aviva life Insurance. This helps to remove many barriers that may exist due to various reasons.The Management of Aviva life Insurance strives to be an equal opportunity employer and therefore does not try to discriminate on the basis of Gender.

Years of Experience within the Organization

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20 18 16 14 12 10 8 6 4 2 0 1 2 3 Yr s 4 5

Data
1) Less than a Year 4) Three Years 5 5 2) One Year 19 5) Four + Years 7 3) Two Years 14

Analysis

Most of the employees in the Organization are relatively new because a majority of them (i.e. 66%) have between one and two years of experience in the Organization. This is mainly due to the fact that the Organization is in a constant mode of growth and is therefore recruiting in a big way. The expansion plans are done keeping in mind the proposed growth in business in the near future. Another reason is the fact that finding new talent for the required skills is a tough task because market awareness about the career growth in this sector is very limited. Due to this, Aviva life Insurance
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has inducted a lot of employees after providing them with training to ensure that their Human resource requirements are met. 1) Have you worked in any other Company prior to joining this Organization?

35 30 25 20 15 10 5 0 1 2

Data

1) Yes 32 2) No - 18
Analysis

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Thirty-two employees (i.e. 64%) have some amount of prior work experience before joining Aviva life Insurance. Most of them are diploma holders in animation and were not aware of the existence of such an industry.They do not have any hands-on experience of the kind of work carried out by Aviva life Insurance.This fact can also be interpreted as having no valid work experience at all prior to joining the Organization. 2) Were you informed about the Performance Appraisal model, used in the Organization, during your induction?

27 26 25 24 23 22 21 1 2

Data
1) Yes 27 2) No - 23

Analysis

Due to the fact that most of the employees have got no experience in this sector before, they did not ask about the Performance Appraisal model used in the Organization. 3) How do you find the Performance Appraisal Model in this
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Organization? (Mark all the relevant options)

40 35 30 25 20 15 10 5 0 1 2 3 4 5 6

Data
1) Simple 37 2) Complicated 13 5) Efficient - 32 3) Objective - 17 6) Inefficient - 18 4) Subjective - 33

Analysis

From the above chart it can be inferred that, a majority of the sample respondents have found the Appraisal Model to be simple and efficient on one hand but also subjective on the other hand. T 4) In your opinion, does the Performance Appraisal System give a proper assessment of your contribution to the Organization?

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27 26 25 24 23 22 21 1 2

Data
1) Yes 27 2) No - 23

Analysis About 54% of the respondents say that the Performance Appraisal System does give a true and fair view of their contribution to the Organization 5) How often does your Performance assessment match to your expectations?

20 18 16 14 12 10 8 6 4 2 0 1 2 3 4 5

Data
1) Never - 2 4) Often - 20
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2) Rarely - 8 5) Every time - 7

3) Sometimes 13

Analysis The breakup of the data clearly shows that 4% of the entire sample state that their appraisal have never shown a fair view of their performance,80% are satisfied with the present system.This does show that the satisfaction level of the employees in this system is quite high and that there is a general feeling of likeability among the respondents

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6) According to you, how often should the Performance Review take place?

18 16 14 12 10 8 6 4 2 0 1 2 3 4 5

Data
1) Once in a week - 14 4) Every 6 Months - 3 2) Once a month - 17 5) Once a Year - 4 3) Every 3 months 12

Analysis
Performance appraisal review is a constant process and lesser the frequency between the appraisals, the better. The majority want (i.e. 86% which includes the first 3 options only) the frequency of the appraisal to less than 3 months.

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7) What is your Satisfaction level with the current Appraisal System?

30 25 No of People 20 15 10 5 0 1 2 3 Satisfaction level 4 5

Data
1) Very Low - 0 4) High - 28 2) Low - 4 5) Very High - 5 3) Average 13

Analysis
The satisfaction level of the Appraisal system is quite high as can be seen from the graph. The curve tops at the rating of high and this includes about 56% of the population. The bell curve shows that 92% have rated the Appraisal system as average, high or very high.The satisfaction level also brings to light the efficiency of the management in devising acceptable Appraisal system.

8) Which are the areas that should be improved upon?

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25

20

15

10

0 1 2 3 4

Data
1) Standards - 12 4) Appraiser - 3 2) Monetary Incentives - 25 3) Freq of Appraisal 23

Analysis
This question breaks up the different phases of the appraisal system and tries to come to derive a conclusion as to the areas of improvement in the process of evaluation. Fifty percent of the respondents say that there should be a change on the aspect of monetary incentives.Standards of performance (i.e. benchmarks) should be improved according to 24% of the respondents. Only 6% have stated the there should be change in the appraiser.

9) How important do you think is Performance Appraisal to your Performance?

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Productivity Analysis

25

20 15

10 5

0 1 2 3 4 5

Data
1) Not Important - 0 4) Very Important - 22 2) Less Important - 2 5) Most Important - 12 very important 3) Important 14

Analysis
A vast majority of the respondents (i.e. 68% which includes ratings of or most important ) affirm that their performance is directly influenced by recognitions of their performance by the appraisal system. None of the respondents have stated that the appraisal system had no effect on their productivity.

10) Do you think the One on One sessions are effective in ironing out problems in the work environment?

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27 26 25 24 23 22 21 1 2

Data
1) Yes 23 2) No - 27

Analysis
Sixty four percent of the employees responded by saying that the one on one sessions are not efficient in ironing out problems mainly because since they are done on a formal basis so most employees consider it just as a formality which the appraiser uses to impose the rating he has already given to an employee. The employee therefore does not expect the rating to change after a one on one session with the supervisor.

46

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11) Transparency Rating of the Performance Appraisal system

Transperancy Rating

18 16 14 12 10 8 6 4 2 0 1 2 3 4 5 6

Data
1) 4 Points 4) 7 Points 10 8 2) 5 Points 5) 8 Points 16 5 3) 6 Points 9 6) 9 Points 2

Analysis
This question is an attempt to analyze the perceived transparency of the rating among the employees of the Organization. A majority of the employees have given a transparency rating of 5. The perception of the employees is since the appraisal is done on a quarterly basis, the employee is not in a position to actually evaluate the basis of the rating he / she has received. This causes a lot of ambiguity in the ratings. This is the primary concern due which almost 70 % have given a rating of 6 and below. The respondents who have given a rating of 7 and above have mostly given this rating because they have got good ratings in the past and feel that there is not much required in terms of transparency as long as they get good ratings themselves.

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47

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12) Do you feel comfortable discussing any difference of opinion about your Performance Rating with your appraiser?

30
25 20 15 10 5 0 1 2

Data
1) Yes 21 2) No - 29

Analysis
The major reason for the decreased transparency rating might be due to the fact that 58 % of the respondents did not feel free to express their displeasure, if any, to the rating given to them. This can be due to decreased comfort levels with the appraiser. The appraisal system can only be efficient if it takes into consideration the employee s side of the appraisal.

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13) Performance Appraisal Model Rating

Overall Rating

18 16 14 12 10 8 6 4 2 0 1 2 3 4 5

Data
1) 5 Points 4) 8 Points 2 16 2) 6 Points 6 3) 9 Points - 12 3) 7 Points 14

Analysis
The respondents were specifically told to rate the Appraisal system by setting aside any kind of human intervention present in it by just evaluating its inherent structure and not efficiency in its execution. This helps to ascertain whether there are any flaws in the Performance Appraisal system. About 80 % of the sample has given a rating of 7 points and above. This shows the system is generally acceptable to the employees and is a good sign.

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CHAPTER 6 SWOT ANALYSIS

The SWOT analysis of Insurance sector is as follows:1. Strength - Very good policies of life coverage. 2. Weaknesses :- unable to convince the people about the products. There are not much advisors for the insurance companies 3. Oppourtunities :- Untapped rural sector and small towns 4. Threats :- growing competition from larger MNC's.

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CHAPTER 7 CONCLUSION With rewards being directly linked to achievement of objectives, goal setting and Performance Appraisal assumes utmost importance. The Performance Appraisal System has been professionally designed and it is monitored by HRD. The implementation is the responsibility of each and every employee along with their supervisor. There should be adequate training to the evaluator that will go a long way in answering the quality of Performance Appraisal. In conclusion, a Performance Appraisal is a very important tool used to influence employees. A formal Performance review is important as it gives an opportunity to get an overall view of job performance and staff development. It encourages systematic and regular jointstocking and planning for the future. Good performance reviews therefore dont just summarize the past they help determine future performance.

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CHAPTER 8 RECOMMENDATIONS AND SUGGESTIONS Recommendation Presence of a firmly implemented career plan- good sense of growth. High proportion of routine work- during training and immediately after. Organization climatea. Well analyzed goals are set. b. Good and effective performance appraisal strategies applied. c. All the strategies are fair and objective. d. The employees are well aware of what is expected of them. e. Proper feedback is not given to the management cadre staff. f. Suggestions and innovations are not rewarded. g. Supervisors are patient with the employees problems. h. Good performance leads to annual increments and promotions. i. Training and development programs are not very effective and helpful. j. The purpose of Performance Appraisal System followed in the company is fulfilled.

Suggestions Extensive of the job training. Free hand in decision making. Focused job responsibility. Transparent career planning of all officers. Give tangible advantages.

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 Exemplary rewards should be given for unique achievements of the employees. Informal were calling as and when they need. Giving chance in decision making. Reward for employee work. Proper interactions with seniors. Effective training and development programs should be held. Proper feedback should be given to the management cadre staff at fixed time periods. Suggestions and innovations should be encouraged. Performance appraisal system should be extensively used in job rotation. Up gradation of basic qualification of all workers to be taken in future based on their performance. Improve competency of the workers. The company should concentrate more on individual development.

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CHAPTER 9 APPENDICES

Questions for Appraises

Name: ___________________________ __________________________

Contact No:

What do you expect from a Performance appraisal : (Rank the options from 1 to 6; 1 being most preferred & 6 being least preferred) Detail Salary Administration and Benefits Determination of promotion or transfer Decision on layoff Assistance in goal Guideline for training Plan An insight into your strengths and weakness Rank

1.

Do you know what exactly is expected from you at work? b. No

a. Yes
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2.

Are you satisfied with the appraisal system? 1 2 3 4 5

(1 = Least satisfied; 5 = Most satisfied)

3.

Are you aware of performance ratings? b. No

a. Yes
4.

Do you think you should be given an opportunity to rate your own performance?

a. Yes
5.

b. No

Are you given a chance to rate your own performance? b. No

a. Yes
6.

Timing of Appraisals

a. Monthly b. Quarterly c. Half Yearly d. Annual e. Anytime

7.

Does the credibility of Appraiser affect the Performance Appraisal System? b. No

a. Yes
8.

Is there a complaint channel for the employees who are dissatisfied with the performance appraisal system?

a. Yes
9.

b. No

Are the standards on the basis of which the performance appraisal is carried out communicated to the employees before hand?

a. Yes
10. Who

b. No conducts the performance appraisal?

a. Immediate supervisor
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b. Peer appraisal c. Rating committees d. Self-rating e. Appraisal by subordinates

11. Is

the performance Appraisal successful in giving a clear understanding of

the appraisees job to both appraiser and appraise? a. Yes

12. Are

b. No the objectives of appraisal system clear to you? b. No the appraisal system provide a good communication between the top-

a. Yes
13. Does

management plans and business goals to staff below? a. Yes

14. Do

b. No

you want your comments and suggestions to be taken into considera-

tion during appraisal? a. Yes

15. Is

b. No

there a post appraisal interview conducted? b. No

a. Yes

Questions for Appraiser Name: ___________________________ __________________________ Contact No:

1.

Purpose of Performance appraisal : (Rank the options from 1 to 6; 1 being main purpose & 6 being last purpose) Detail
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Rank

Salary Administration and Benefits Retain performing employees Determination of promotion or transfer Decision on layoff Assistance in goal Guideline for training Plan

2.

Is the Performance Appraisal helping you to plan your work well? 1 2 3 4 5

(1 = Least helpful; 5 = Most helpful)

3.

Does the system provide you a chance to communicate the support you need from your subordinate to perform the job well.

a. Yes
4.

b. No

Which appraisal system is being employed in the company?

a. Assessment centre b. MBO c. BARS d. 360 degree feedback e. Balance scorecard

5.

Performance Appraisal criteria

a. Quantitative outcome criteria (Sales volume, Sales price, Productivity, Goal accomplishment rate)
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b. Qualitative process criteria (Quality of product or service, Customer satisfaction) c. Quantitative process criteria (Efficiency, Cost/expenses, Attendance) d. Qualitative process criteria (Judgment, Work attitude, Leadership, Conduct /Trait)
6.

Timing of Appraisals

a. Monthly b. Quarterly c. Half Yearly d. Annual e. Anytime

7.

What do you think is the effect of a poor appraisal system

a. De-motivation b. Retention c. Ineffective teamwork

8.

Does the appraisal system provide a good communication between the topmanagement plans and business goals to staff below?

a. Yes
9.

b. No

Does it give insight to appraisee regarding his strength or weakness? b. No employees comments and suggestions taken into consideration before

a. Yes
10. Are

the appraisal? a. Yes

11. Who

b. No conducts the performance appraisal

a. Immediate supervisor b. Peer appraisal c. Rating committees

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d. Self-rating e. Appraisal by subordinates

12. Is

the performance Appraisal successful in giving a clear understanding of

the appraisees job to both appraiser and appraise? b. Yes

13. Are

b. No the standards on the basis of which the performance appraisal is car-

ried out communicated to the employees before hand? a. Yes

14. Do

b. No

you give an opportunity to the appraisee to rate his own performance? b. No

a. Yes
15. Do

you act upon the results of your performance appraisal? b. No

a. Yes
16. If

yes, then mention the remedial measures taken?

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CHAPTER 10 BIBLOGRAPHY Books: Donald L. Kirkpatrick, 2006, Improving Employee Performance through Appraisal and Coaching. Richard Rudman, 2003, Performance Planning and Review. Roger E. Herman, 1997, The Process of excelling, oak Hill press. P. Subba Rao, 2006, Essentials of Human Resource Management and Industrial Relations, Himalaya Publishing House. Journals: Gitam Journal of Management. Journal of Occupational and Environmental medicine. Indian Journal of Social Work. Indian Journal of Human Resource. Websites Visited: www.jkorg.in www.google.com www.answers.com www.wikipedia.org

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