PT.

HARISHANKAR SHUKLA MEMORIAL

COLLEGE, RAIPUR (C.G.)
A REPORT
ON

“PERFORMANCE APPRAISAL”
System followed in Vodafone in
reference to Ambresh Services.

SUBMITTED IN THE PARTIAL FULFILLMENT OF THE

DEGREE OF BACHELOR’S OF BUSINESS ADMINISTRATION
UNDER THE GUIDANCE OF:-
Mr. Abhay Kapoor Sir
SUBMITTED BY:-
Vivek Sahu
BBA-6th SEMESTER

1
 TABLE OF CONTENT
CONTENT PAGE NO.

 Acknowledgement 03

 Preface 04

 Introduction 05-20

 Objectives & Methodology of the Study 20-23

24-30
 Organizational Profile
 Performance appraisal-Theoretical Review 31-51

 Performance appraisal in Vodafone. 52-55

 Analysis & Interpretation of data. 56-70

 Conclusion and Suggestion 71-73

 Annexure 74-76

 Bibliography 77

2
 ACKNOWLEDGEMENT

One of the most pleasant aspects of writing an acknowledgement is the opportunity to

thank all those who have contributed to it. Unfortunately, the list of expression of
gratitude- no matter how extensive – is always incomplete and inadequate. This
acknowledgement is no exception.

First of all, I wish to express my sincere gratitude to Faculty Guide Mr. Abhay
Kapoor, Pt. Harishankar Shukla Memorial College, Raipur for giving me an
opportunity to do research under his profound guidance. Because of his inspiring
guidance, motivation, positive criticism, continuous encouragement and untiring
supervision this work could be brought to its present shape.

I would like to thank all of them who in one way or the other have helped me.

VIVEK SAHU

3
 PREFACE
Training is the most vital part of a BBA course, both as a link between
theory and actual industrial practices as well as an opportunity for hands on
experience in corporate environment. I therefore, consider myself fortunate
to receive the training in an esteemed organization viz. Vodafone. Yet the
opportunity could not have been utilized without the guidance and support
of many individuals who although held varied positions, but were equally
instrument for completion of my training.
I also thank all my faculty members, my Parents and friends.
However, I accept the sole responsibility of errors and omissions and
would be extremely grateful to readers of this project report if they bring
such mistake to my notice.

4
 CHAPTER - 1
INTRODUCTION

5
 CHAPTER 1
TITLE OF THE PROJECT:
Performance appraisal System followed in Vodafone in reference to
Ambresh Services.

INTRODUCTION

The history of performance appraisal is quite brief.

Its roots in the early 20th century can be traced to Taylor's pioneering
Time and Motion studies. But this is not very helpful, for the same may
be said about almost everything in the field of modern human resources
management.

As a distinct and formal management procedure used in the evaluation

of work performance appraisal reall y dates from the time of the S econd
World War -not more than 60 years ago.

Yet in a broader sense, the practice of appraisal is a very ancient art. In

the scale of things historical, it might well lay claim to being the
world's second oldest profession.

The human inclination to judge c an create serious motivational, ethical

and legal problems in the workplace. Without a structured appraisal
s ystem, there is little chance of ensuring that the judgment’s made will
be lawful, fair, defensible and accurate.

Performance appraisal systems beg an as simple methods of income

justification. That is, appraisal was used to decide whether or not the
salary or wage of an individual employee was justified.

The process was firml y linked to material outcomes. If an employee's

performance was found to be less than ideal, a cut in pay would follow.

6
On the other hand, if their performance was better than the supervisor 's
expectation, then a pay rise was in order.

Little consideration, if any, was given to the developmental possibilities

of appraisal. It was felt that a cut in pay, or a rise, should provide the
onl y required impetus for an employee to either improve or continue to
perform well.

Sometimes this basic system succeeded in getting the results that were
intended; but more often than not, it failed.

For example, earl y motivational researchers were aware that different

people with roughl y equal work abilities could be paid the same amount
of money and yet have quite different levels of motivation and
performance.

These observations were confirmed in empirical studies. Pay rates were

important, yes; but they were not the only element that had an impact on
employee performance. It was found that other issues, such as morale
and self-esteem, could also have a major influence.

As a result, the traditional emphasis on reward outcomes was

progressivel y rejected. In the 1950s in the United States, the potential
usefulness of appraisal as tool for motivation and development was
graduall y recognized. The general model of performance appraisal, as it
is known today, began from that time.

7
Modern Appraisal

Performance appraisal may be defined as a structured formal interaction

between a subordinate and supervisor, that usuall y takes the form of a
periodic interview (annual or in which the work performance of the
subordinate is examined and discussed, with a view to identifying
weaknesses and strengths as well as opportunities for improvement and
skills development.

In many organizations -but not all -appraisal results are used, either
directl y or indirectly, to hel p determine reward outcomes. That is, the
appraisal results are used to identify the better performing employees
who should get the majorit y of available merit pay increases, bonuses
and promotions.

By the same token, appraisal results are used to identify the poorer
performers who may require some form of counseling, or in extreme
cases, demotion, dismissal or decreases in pay. (Organizations need to
be aware of laws in their country that might restrict their capacit y to
dismiss employees or decrease pay.)

Whether this is an appropriate use of performance appraisal -the

assignment and justific ation of rewards and penalties is a very
uncertain and contentious matter.

8
Controversy, Controversy

Few issues in management stir up more controversy than performance

appraisal.
There are many reputable sources -researchers, management
commentators, and psychometricians , who have expressed doubts about
the validit y and reliabilit y of the performance appraisal process. Some
have even suggested that the proces s is so inherentl y flawed that it may
be impossible to perfect it. At the other extreme, there are many strong
advocates of performance appraisal. Some view it as potentially "... the
most crucial aspect of organizational life".

Between these two extremes lie various schools of belief. While all
endorse the use of performance appraisal, there are many different
opinions on how and when to appl y it.

There are those, for instance, who believe that performance appraisal
has many important employee development uses, but ridiculousl y any
attempt to link the process to reward outcomes -such as pay rises and
promotions. This group believes that the linkage to reward outcomes
reduces or eliminates the developmental value of appraisals. Rather
than an opportunit y for constructive review and encouragement, the
reward- linked process is perceived as judgmental, punitive and
harrowing. For example, how many people would gladl y admit their
work problems if, at the same time, they knew that their next pay rise
or a much-wanted promotion was riding on an appraisal result? Very
likel y, in that situation, many people would deny or downplay their
weaknesses.

Nor is the desire to distort or deny the truth confined to the person
being appraised. Many appraisers feel uncomfortable with the combined
role of judge and executioner.

Such reluctance is not difficult to understa nd. Appraisers often know

their appraises well, and are t ypicall y in a direct subordinate -

9
supervisor relationship. They work together on a dail y basis and may,
at times, mix socially. Suggesting that a subordinate needs to brush up
on certain work skills is one thing; giving an appraisal result that has
the direct effect of negating a promotion is another.

The result can be resentment and serious morale damage, lea ding to
workplace disruption, soured relationships and productivit y declines.

On the other hand, there is a strong rival argument which claims that
performance appraisal must unequivocall y be linked to reward
outcomes. The advocates of this approach say th at organizations must
have a process by which rewards - which are not an unlimited resource -
may be openl y and fairl y distributed to those most deserving on the
basis of merit, effort and results.

There is a critical need for remunerative justice in organizations.

Performance appraisal -whatever its practical flaws -is the only process
available to help achieve fair, decent and consistent reward outcomes. It
has also been claimed that appraises themselves are inclined to believe
that appraisal results should be linked directl y to reward outcomes -and
are suspicious and disappointed when told this is not the case. Rather
than feeling relieved; appraises may suspect that they are not being told
the whole truth, or that the appraisal process is a sham and waste of
time.

The Link to Rewards

Recent research has reported that appraises seem to have greater

acceptance of the appraisal process, and feel more satisfied with it,
when the process is directl y li nked to rewards. Such findings are a
serious challenge to those who feel that appraisal results and reward
outcomes must be strictl y isolated from each other. There is also a
group who argues that the evaluation of employees for reward purposes,
and frank communication with them about their performance, are part of
the basic responsibilities of management. The practice of not discussing

10
reward issues while appraising performance is, say critics, based on
inconsistent and muddled ideas of motivation.
In many organizations, this inconsistency is aggravated by the practice
of having separate wage and salary reviews, in which merit rises and
bonuses are decided arbitraril y, and often secretl y, by supervisors and
managers.

There are basicall y three purposes to wh ich performance appraisal can

be put. First, it can be used as a basis for reward allocation. Decision as
to who gets salary increase, promotion, and other rewards are
determined by their performance evaluation. Second, these appraisals
can be used for identifying areas where development efforts are needed.
The performance appraisal is a major tool for identifying deficiencies in
individuals. Finall y it can be used as a criterion against which selection
devices and development programs are validated. As a k ey input into
management's reward and punishment decision, performance appraisals
can motivate or de-motivate employees.

PERFORMANCE MANAGEMENT

Since organizations exits to achieve goals, the degree of success that

individual employees have in reaching the ir individual goals is important
in determining organization effectiveness.
Performance system is fundamentall y, a feedback process, which
requires sustained commitment. The cost of failure to provide such
feedback may result in a loss of key professional employees, the
continued poor performance of employees who are not meeting
performance standards and a loss of commitment by employees, in sum,
the m yth that the employee knows what. They are doing without
adequate feedback from management can be an expens ive fantasy

11
 THE APPRAISAL PROCESS

1. Establishing Performance Standard .

2. Communicate Performance expectations to employees .

3. Measure actual performance .

4. Compare actual performance with standards .

5. Discussion with the employees and identification development
programs to bridge the gap.
6. Initiate action.

THE PURPOSE OF APPRAISING PERFORMANCE

In general the appraisal systems serve a twofold purpose

1. To improve the work performance of employees by helping them

realize and use their full potential in carrying out their firm’s
mission.
2. To provide information to employees and managers for use in
making, work related decisions.

More specificall y appraisals serve the following purposes.

a) Appraisals provide feedback to employees and help them. "'

management identify the areas where development efforts are "'
needed to bridge the gaps thereby serving as vehicles for personal
“and career development.

b) It helps management spot individuals w ho have specific skills so

that their promotions/transfer is in line with organizational
requirements.

c) Appraisal serves as a key input for administering a formal

organization reward and punishment system.

12
d) The performance system can be used as a criterion against which
selection devices and development programs are validated.

13
REQUIREMENT OF THE PERFORMANCE
MANAGEMENT SYSTEM.

Reliability: The foremost requirement of a sound system is

reliabilit y. In this contact it refers to consistency of judgment . For any
given employee, appraisals made by raters working independentl y of
one another should agree closel y. But raters with different perspective
(e.g. supervisors, peers, subordinates) may see the same individual’s
job performance very differen tl y. To provide reliable data, each rater
must have an adequate opportunit y to observe what the employee has
done and the condition under which he or she has done it. By making
appraisal system relevant, sensitive and reliable we assume the
resulting judgment is valid as well.

Acceptability: In practice, acceptabilit y is the most important

requirement of all, for it is true that human resources pr ogram must
have the support to Those who will use them. Unfortunately, many
organizations do not put much effort into garnering the front end
support and participation of those who will use the appraisal system.
Ultimatel y it is management's responsibilit y to define as clearl y as
possible the t ype and level of job behavior desired of employees.

It is important to en list the active support and cooperation of

subordinates by making explicit what aspects of job performance they
will be evaluated on.

Practicality: This implies that appraisal instruments are easy for

managers and employees to understand and to use.

For years, personnel specialists have searched for the 'Perfe ct;
appraisal method as if it were some kind of miraculous cure for man y
pitfalls that plague organizations. Such a method does not exist. In

14
tomorrow’s world of work far more emphasis needs to be pl aced on
process issues. Factors such as timing and frequency are no less
important. In sum performance appraisal is a dialogue involving people
and data. Both technical and human issues are involved. Neither can be
overemphasized at the expense of the othe r.

WHO SHOULD EVALUATE PERFORMANCE?

The most fundamental requirement for any rater is that he or she has an
.Adequate opportunity to observe the rates job performance over a
reasonable period of time .This suggest several possible raters.

The immediate supervisor: Generall y appraisal is done by this

person. He is probabl y the most familiar with the individual's
performance and in most jobs has had the best opportunit y to observe
actual job performance. Furthermore, the immediate supervisor is
probabl y best able to relate the individual's performing to department
and organizational objectives.

In some jobs such as outside sales, law enforcement and teaching, the
immediate supervisor may observe a subordinate's actual job
performance rarel y (and indirectl y thru written reports). Here
judgment of peers play important role. However, there is a danger of
potential bias.

Subordinates: Appraisal by subordinates can be useful input to the

immediate development. Subordinates know first hand the extent to
which the supervisor actuall y delegates, how well he communicates, the
type of leadership he has and the ext ent to which he or she plans.

15
Self-appraisal: On one hand it improves the rate's motivation and
moral, on the other it tends to be more lenient, less variabl e and biased.
The evidence on the accuracy of self assessment is fairl y complex.

In industry it is seen that feed back/ input is taken from various sources
-Peers, subordinates, superiors etc. Some companies have gone step
ahead in taking feedback from the customers and integrating it into the
performance management process.

16
APPROACHES TO PERFORMANCE MANAGEMENT

The traditional approach: The one dimensional model

The Job Define what results Performance contact

Have to be achieved

Define a set of key

Objectives against the
Accountabilities
Accountabilities i.e,
output

Review performance
Against the key
Objectives

In this model job expectations are defined in terms of what results have
to be achieved. This model doesn't have a long term focus and can't be
used for employee development and career path planning,

A satisfactory performance implies doing a job effectivel y and

efficientl y, with a minimum degree of employee -created disruptions.
Employees are performing well when they are productive. Yet
productivit y itself implies both concern for effectiveness and efficiency.
Effectiveness refers to goal accomplishment. Efficiency evaluates the
ratio of inputs consumed to outputs achieved. The greater the output for
a given input, the more efficient the emp loyees. Similarl y, if output is a
given, consumed to get that output results in greater efficiency.

There are basicall y three purposes to which performance appraisal can

17
be put. First, it can be used as a basis for reward allocations. Decisions
as to whose salary gets increased , promotions, and other rewards are
determined by their performance evaluation. Second, these appraisals
can be used for identifying areas where development efforts are needed.
Management needs to spot those individuals who have speci fic skill or
knowledge deficiencies. The performance appraisal is a major tool for
identifying these deficiencies. Finall y, the performance appraisal can be
used as a criterion against which selection devices and development
programs are validated.

18
 Chapter 2

OBJECTIVE AND
METHODOLOGY OF THE
STUDY

19
 Chapter 2

OBJECTIVE AND METHODOLOGY OF THE STUDY

1. Objective of the study

This project aims at studying the system of performance appraisal and its
effectiveness in an organization . Performance appraisal is the most
significant and indispensable tool for the management as it provide
useful information for decision making in area of promotion and
compensation reviews.

Thus broad objectives of the study include :

 To know the present system of perfor mance appraisal in Vodafone

in reference to Ambresh Services.

 To know the extent of effectiveness of the appraisal system in

Vodafone in reference to Ambresh Services.

 To identify a nd know the area for improvement in performance

appraisal system in Vodafone in reference to Ambresh Services.

2. Sample of the study

The population covered for the present study consisted of employee

belonging to supervisory and the level above. For the purpose of this
study, survey covered the employee of VODAFONE falling under
supervisor and the level above.

The study covered a sample of 24 employees belonging to supervisory

level and above.

3. Methodology of the project

The project work has been carried out in three stages, a structured
questionnaire with objecti ve and question was communicated tested and
finalizes. During the second stage, the questionnaire was administered

20
to the employees at Vodafone by contacting them. The work relating to
data entry compilation, data anal ysis and report writing constituted th e
third stage. Interview index was also used at some places to get
information on the project subject.

The details of the methodology adopted are presented below:

The Questionnaire

Keeping in view the objective of the study, questionnaire was designed

and tested on few employees. After getting the proper response and
sanction from the concerned department the questionnaire was finalized.

Response to Questionnaire

In all 24 questionnaire were given to employees falling in the category

of supervisors and above. The researcher individuall y contacted the
employees to get response on the questionnaire.

Data entry and analysis

It has been an uphill task to enter the enormous data received through
the questionnaire which con sisted nearly 12 questions. Response to the
descriptive questions though very few but was valuable for the purpose
of study. Hence these were further structured in time with the system
adopted for compilation and data anal ysis.

21
Limitations
Many employees gave guarded answers to some crucial questions.

Some of them did not fill the questionnaire due to lack of time

Response could not be collected from the total no of employees working

in the organization .

Some of the questionnaire could not be completed due to reasons other

than time factor .The confidentialit y of the system created some problem
in getting information.

22
 Chapter 3
ORGANIZATION PROFILE

23
Organizational Profile :-

Vodafone group pic is a british multinational tele communications company with

hedquater in london.It predominiantly operates srvicesin the regions of asia, africa,
europe and oceania. wikipedia
Stock price : VOD(LON)211.27 GBX -0.13 (0.06%)
20Mar, 8:28AM GMT – disclaimer
CEO : vittorio colao (29 jul 2008)
Headquater : London, united kingdom
Founded : 16 september 1991, newbury, united kingdom
Revenue : 4.97 billion GBP(2016)
Total assets : 133.7 billion GBP(2016)
Subsidiaries: ONO, Zigo, kebal deutschland, vodafone uk, more
Founders: Emest Harrison, Gerry Whent

24
Vodafone over the years

Hutchison Max Telecom Ltd. (HMTL), a joint venture between Hutchison Whampoa
and the Max Group, was established on 21 February 1992. The license to operate in
Mumbai (then Bombay) circle was awarded to Hutchison Max by the Department of
Tele communications .in November 1994. The cellular service branded "Max Touch"
was launched the same year. Hutchison Max entered into the Delhi telecom circle in
December 1999, the Kolkata circle in July 2000 and the Gujarat circle in September
2000. Licenses for these circles had initially been awarded by the DoT in 1994, 1997
and 1995 respectively. Between 1992 and 2006, Hutchison acquired interests in all 23
mobile telecom circles of India.

HMTL was renamed Hutchison Essar Limited (HEL) in August 2005.In Delhi, Uttar
Pradesh (East), Rajasthan and Haryana, Essar Group was the major partner. But later
Hutch took the majority stake. By the time of Hutchison Telecom's Initial Public
Offering in 2004, Hutchison Whampoa had acquired interests in six mobile
telecommunications operators providing service in 13 of India's 23 licence areas and
following the completion of the acquisition of BPL Mobile that number increased to 16.
In 2006, it announced the acquisition of a company (EssarSpacetel — A subsidiary of
Essar Group) that held licence applications for the seven remaining licence areas.
Initially, the company grew its business in the largest wireless markets in India — in
cities like Mumbai, Delhi and Kolkata. In these densely populated urban areas it was
able to establish a robust network, well-known brand and large distribution network –
all vital to long-term success in India. Then it also targeted business users and high-end
post-paid customers which helped Hutchison Essar to consistently generate a higher
Average Revenue Per User (ARPU) than its competitors. By adopting this focused
growth plan, it was able to establish leading positions in India's largest markets
providing the resources to expand its footprint nationwide. In February 2007, Hutchison
Telecom announced that it had entered into a binding agreement with a subsidiary of
Vodafone Group Plc to sell its 67% direct and indirect equity and loan interests in
Hutchison Essar Limited for a total cash consideration (before costs, expenses and
interests) of approximately $11.1 billion.

25
A 'You and I' print advertisement of Hutch featuring Cheeka (dog)

Hutch was often praised for its award winning advertisements which all follow a clean,
minimalist look. A recurrent theme is that its message "Hi" stands out visibly though it
uses only white letters on red background. Another successful ad campaign in 2003
featured a pug named Cheeka following a boy around in unlikely places, with the
tagline, "Wherever you go, our network follows." The simple yet powerful
advertisement campaigns won it many admirers. Advertisements featuring the pug were
continued by Vodafone even after rebranding. The brand subsequently introduced Zoo
Zoos which gained even higher popularity than was created by the Pug. Vodafone's
creative agency is O&M while HaritNagpal was the Marketing Director during the
various phases of its brand evolution

Merger with Idea Cellular-

On 20 March 2017, Vodafone India and Idea Cellular announced that their respective
boards had approved a merger of the two companies. The merger will not include
Vodafone's 42% stake in Indus Towers Ltd. The merger will create the largest telecom
company in India by subscribers and by revenue. Under the terms of the deal, the
Vodafone will hold a 45.1% stake in the combined entity, the Aditya Birla Group will
hold 26% and the remaining shares will be held by the public. The merger is expected
to be completed by March 2019, and the newly merged entity will named at a later date.

26
Mobile services

3G

On 19 May 2015, the 3G spectrum auction in India ended. Vodafone paid 11617.86
million (the second highest amount in the auctions) for spectrum in 9 circles. The
circles it will provide 3G in are Kolkata, Gujarat, Haryana, Delhi, Maharashtra&Goa,
Mumbai, Tamil Nadu, Uttar Pradesh (East) and West Bengal.

On 23 June 2011 Vodafone launched 3G service in Kerala by joining with Idea in an

Intra Circle Roaming agreement. Initially Vodafone 3G services will be available in the
following cities in Kerala – Ernakulam, Aluva, Palakkad, Thrissur, Calicut, Koyilandy,
Alappuzha, Cherthala, Malappuram and Manjeri. On 28 June 2012, Vodafone launched
a new international roaming package under which the users shall have not to pay
multiple rentals in the countries they are visiting.

4G

On 8 December 2015, Vodafone announced the roll out of its 4G network in India on
1800 MHz band, starting from Kochi, Kerala.[After that Vodafone has launched 4G
services in Kolkata, Mumbai, Delhi followed by Kerala and Karnataka. Vodafone has
launched 4G services in Tamil Nadu by 2100 MHz spectrum. On 5th January 2017,
World's Largest 4G Network Vodafone Launched its 4G services In Guwahati Followed
By Tinsukia, Sibsagar , Bongaigaon In Assam Circle. Vodafone is expected to launch
VoLTE services in 2017 followed by RelianceJio and BhartiAirtel.

M-Pesa

M-Pesa, branded as M-Paisa (the paisa being the largely unused subunit of the Indian
rupee), was launched in India as a close partnership with HDFC bank in November
2011.Development for the bank began as early as 2008. The service continues to
operate in a limited geographical area in India. Vodafone India had partnered with both
HDFC and ICICI,ICICI launched M-Pesa on April 18, 2013.Vodafone plans to rollout
this service throughout India.The user needs to register for this service by paying 100
Rupees and there are charges levied per M-Pesa transaction. They can get recharge

27
mobiles and DTH from m-pesa and also they can transfer the money to other users and
other banks also.

Vodafone stores

As of 3 September 2013, there were a total of 16 Vodafone Angel Stores in 14 states, all
staffed entirely by women. Stores currently operate in Agra, Ahmedabad,
Bhubaneshwar, Chennai, Delhi, Goa, Haryana, Hyderabad, Jaipur, Kerala, Kolkata,
Lucknow, Mumbai, Mysore, Pune, Shillong, Vadodara and Rajkot.

According to Marten Pieters, Managing Director and CEO, Vodafone India, "The Angel
Stores are a part of Vodafone’s commitment to provide our women employees with one
of the most secure and productive work environment. Additionally, our women
customers feel more welcomed while visiting the store."

28
29
Subscriber base

Following is the Vodafone India subscriber base statistics as on September, 2014.

Subscriber Base Statistics as on September, 2015

Telecom Circle No. of
Subscribers
Gujarat 15,801,117
Uttar Pradesh(East) 14,526,236
Maharashtra 12,977,123
West Bengal 11,165,667
Tamil Nadu 9,777,927
Rajasthan 8,565,366
Uttar Pradesh(West) 8,999,073
Andhra Pradesh 2,224,689
Delhi 8,449,120
Goa 7,134,576
Karnataka 6,452,620
Kerala 6,067,506
Bihar 6,381,278
Kolkata 4,084,284
Punjab 4,309,853
Haryana 4,437,015
Madhya Pradesh & 4,101,877
Chhattisgarh
Chennai 2,091,654
Odisha 2,789,575
Assam (North East) 2,188,073
North East 928,563
Jammu & Kashmir 666,009
Himachal Pradesh 475,329
Mumbai 6,160,353

30
Total number of Vodafone India Subscribers : 141,519,840, i.e. 21.54% of the total
657,158,013Indian mobile phone subscribers.

Awards and recognition

The Brand Trust Report, 2011 published by Trust Research Advisory has ranked
Vodafone as the 16th most trusted brand in India.
In Year 2016 the arrival of JIO prepaid in the field of cellular networks 4G affected
telecom market .Then the company decided to introduce some new plans for betterment
of consumers to attract them towards company.

31
 Chapter 4
PERFORMANCE APPRAISAL

32
 PERFORMANCE APPRAISAL

Performance appraisal is a method of evaluating the behavior and Performance of

employees. Performance appraisal or merit rating is one of the oldest and most
universal practices of in the work spot, Normally including both the quantitative and
qualitative aspects of job performance. Performance appraisal can be an effective
instrument for helping people grow and develop in organizational setting. Through a
Well-organized appraisal system . An employee can create learning spaces for himself
in an organization.

Effectively practiced and development oriented performance appraisal & Review

system, substantially contribute to the organization health. Organization cannot do away
with PERFORMANCE APPRAISAL. Some form of assessment of performance on a
continuing basis is essential for survival as well as growth of an organization. If and
develop yardsticks to measure it, if you want to improve performance. The performer
has to be able to understand it.

Performance appraisal is a systematic appraisal of the employee’s personality traits

and performance on the job and is designed to determine his contribution and relative
worth to the firm.

A formal definition of performance appraisal is that, it is the systematic evolution of the

individual with respect to his or her performance on the job and his or her potential for
development

“Performance appraisal is a formal structured system of measuring and evaluating

an employee’s job, related behaviors and out comes to discover how and why the
employee is presently performing on the job an how the employee can perform
effectively in the future so that the employee, organization and society all benefit.”

Under performance appraisal, we evaluate not only the performance of a worker but
also his potential for development.

33
 COMPONENTS OF APPRAISAL EVALUATION

As we have seen performance evolutions can be made a verity of reasons- counseling,

promotion, research, salary, administration or a combinations of these therefore it is
necessary to begin by stating very clearly the objectives of the evolution program.
Having done this, the personal evolution system should address the questions, who,
what, when, where, how? Of performance appraisal

“WHO”
The appraisal can be accomplished by one or more individuals involving a combination
of the immediate supervisor, a higher level manager, a personal manager, the assessee’s
peers, the assessee himself and the assessee’s subordinates.
Usually the immediate supervisor must be interested with the task of rating the assessee
because he his most familiar with his work, and because he is also responsible for
recommending or approving personal action based on the performance appraisal. The
staff specialists, i.e. the personal officer also do appraisal.
They may advise the supervisor while evaluating their subordinates stressing the need
for evidence for making specific appraisal judgments and comparing a particular
subordinate’s evolution with those of others.
The appraisal of an individual may also be done by his peers such appraisal proves
effective in predicting future management success.
This approach has its disadvantage that the individual may rate himself excessively high
then it would be if his superior rated him. Many companies use rating committees to
evaluate employees. These committees consist of supervisors, peers, and subordinates.

“WHAT”
The “what” of the performance appraisal consists in appraising non supervisory
employees for their current performance and managers for potential? It also includes
evaluation of human trades.

34
 “WHY”
The “why” of an appraisal is concerned with –
a) Creating and maintaining a satisfactory level of performance of employees in
their present jobs.
b) Highlighting employee needs and opportunities for personal growth and
development.
c) Promoting understanding between the supervisor and his subordinates.
d) Providing a useful criterion for determining the validity of selection and training
methods and techniques and forming concrete measures for attracting individual
of higher caliber to the enterprise.

“WHEN”
The ‘when’ answers the query about the frequency of appraisal? It has been suggested
in formal counseling should occur continuously. The manager should discuss an
employee’s work as soon as possible after he has judged it.

“WHERE”
The where indicates the location where an employee may be evaluated. It is usually
done at the place of work or office of the supervisor.

“HOW”
Under how the company must decide what different methods are available and which of
these may be used for performance appraisal. Based on the comparative advantages and
disadvantages it is decided which method suit the propose best.

35
PURPOSE OF PERFORMANCE APPRAISAL

 To create and maintain a satisfactory level of performance.

 To provide information making decision for rewardingly of retrenchment etc.
 To guide the job changes with the help to continuous ranking.
 To contribute to the employee growth and development through training, self
and management development program.
 To facilitate for testing and validating selection tests, interview techniques
through compeering their scores with performance appraisal ranks.
 To facilitate fair and equitable compensation based on performance.
 To help the superiors to have proper understanding about their subordinates.

WHAT SHOULD BE RATED

The seven criteria for assessing performance are:

1. Quality: The degree to which the process or result of carrying out an activity
approach perfection.
2. Quantity: The amount of produce expressed in monetary terms number of
units, or number of completed activity cycles.
3. Timeliness: The degree to which an activity or a result produced.
4. Cost effectiveness: The degree to which the use of the organizations
resources (e.g. human, monetary, technological, and material) is maximized in
the séance of waiting the highest gain.
5. Need for supervision: The degree to which a job performer can carry out
job function without supervisory assistance.
6. Interpersonal impact: The degree to which performer promotes feeling of
self – esteem, goodwill and cooperation among co- workers and sub- ordinates.
7. Training: Need for training of improving his skills knowledge.

36
OBJECTIVE OFPERFORMANCE APPRAISAL
A good performance appraisal has following objectives:-

 Help employee to know his weaknesses, and improve his strengths, and thus
enable him to improve his performance and that of the department.
 Generate adequate feedback and guidelines from the reporting officers to the
employee.
 Contribution to the growth and development of the employee through helping in
realistic goal setting
 Help identifying employees for the purpose of motivating, training and
developing them.
 Generate significant relevant, free and valid information about employees thus
good performance appraisal and review system should primarily focus on
employee's development.

METHODS OF APPRAISAL

Broadly all the approaches to appraisal can be classified into:-

 Past-oriented:
 Rating scales
 Checklist
 Forced choice method
 Forced distribution
 Critical incident method
 Behaviorally anchored’ scales
 Field review method
 Annual confidential report
 Essay method
 Cost accounting approaches
 Comparative evolution approach
 Ranking method
 Paired – comparison method

37
  Future – oriented:
 Management by objectives
 Psychological appraisals
 Assessment center
 360 degree performance appraisal

METHODS OF PERFORMANCE APPRAISALS

Past Oriented Methods

 Rating scales:
This is the simplest and the most popular technique for employee performance.
The typical rating – scales system consists of several numerical scales, each
representing job related performance criterion such as dependability, initiative
output, attendance, attitude, co-operation and the like. Each scales ranges from
excellent to poor. The rater checks the appropriate performance level on each
criterion, and then computes the employees total numerical scores.

 Checklist:
In this method, the raters don’t evolutes employee performance, he supplies
reports about it and the personal department does the final rating a series of
question are presented concerning and employee to his behavior. The rater, then,
to indicate if the answer to a question about an employee in positive or negative.
Generally, the questions are on yes/no pattern.

 Forced choice method:

In this the rate is given a series of statements about employee. These statements
are arranged in block of two or more, and the rater indicates which statements is
most or least disruptive of the employee.

38
 Critical incident method
The, approaches focus on certain critical behaviors of an employee that makes
all the difference between effective and non effective performance of a job.
Such incidents are recorded by the superiors as and when they occur.

 Behaviorally Anchored Rating Scales

Sometimes this is called behavioral expectation scales, are rating scales whose
scale point are determined by statements of effective and ineffective behaviors.
A rater must indicate which behavior on each scale best describes an employee’s
performance.

 Field review method

This is an appraisal by someone outside the assesses on department usually
someone from the corporate office or H.R department. The outsider review
employee records and holds interviews with the rate and his or her superior .the
method is primarily used for make promotional decision at the managerial level.

 Annual confidential report method

In this method each employee is rated confidentially by one or more senior
officers for his performance. The report deals with the years work and general
opinion of the rater towards the employee. The main problem with his method is
that it is not data based and the appraisal is done the bases of impression.

 Essay method
In the essay method, the rater must describe the employee with in a number of
broad categories such as-
a) The rater’s overall impression of the employee’s performance
b) The promo ability of the employee
c) The jobs that the employee is now able or qualified to perform
d) The strength and weaknesses of the employee and the training and the
development assistant required the employee.

39
  Comparative Evolution Approaches
These are a collection of a different methods that compare one worker’s
performance with that his / her co-workers. Supervisors usually conduct
comparative appraisals. As these appraisals can result in a ranking from best to
worst they are useful on deciding merits-pay increases promotions and
organizational rewards. We can classify it into-

a) Ranking method
In this, the superior his or her subordinates in the order of their merits starting
from the best to the worst,. This method is subject to the hallo and Recency
effects, although ranking by two or more raters can be averaged to help reduce
biases. It advantages include ease of administration and explanation.

b) Paired – Comparison method :-

Under this method the appraiser compares each employee with every other
employee, one at a time. The number of comparisons may be calculated with the
help of formula, which reads thus-:
N (N-1)/2

360 DEGREE PERFORMANCE APPRAISAL

Typical appraisers are: supervisors, peers, subordinates employees themselves users of

service and consultants. Performance appraisal by all these parties is called” 360
DEGREE PERFORMANCE APPRAISAL”
1. Supervisors:
Supervisors include superiors of the employee other superiors having
knowledge about the work of the employee and department head or manager.
General practices is that immediate superiors appraise the performance, hitch
in turn reviewed by the departmental head /manager.

40
2. Peers:-
Peer appraisal may be reliable if the work group is stable over a reasonably
long period of time and perform tasks that require integration.
3. Subordinates:-
The concept of having superiors rated by
Sub ordinates are being used in most organizations today especially in
developed countries. Such a novel method can be useful in other organizational
settings too provided the relationship between superiors and subordinates are
coordinal.
4. Self-Appraisal:-
In individuals understand the objective they are expected to achieve and the
standard by which they are to be evaluated, they are to a great extend in the best
position to appraise their own performance.
5. Users of Service Customers:-
Employee performance in service organization relating to behaviors,
promptness, speed in doing the job and accuracy, can be better judged by the
customers or users of services.
6. Consultants:-
Sometimes consultants may be engaged for appraisal when employees or
employers not trust supervisor and management does not trust the self-appraisal
a peer appraisal or subordinate appraisal.

THE POST APPRAISAL INTERVIEW

This interview provides the employee the feedback information, and an

opportunity to the appraiser to employee his rating, the trail and behavior he has
taken into consideration etc.
Further it helps both the parties to review standards, set new standards based on
the reality factors and helps the appraisal to offer his suggestion, help, guide and
coach the employee for his advancement.
Thus, the post appraisal interview is designed to achieve the following the
objectives.

41
  To let employee know where stand
 To help employee do better job by clarifying what is expected of them
 To plan opportunities for development and growth
 To provide an opportunity for employees to express themselves
on performance related issue.
Thus, post appraisal interview is most
helpful to the employee as well as his superior.

KEY ELEMENTS OF PA SYSTEMS

 Performance Improvement:-

Performance feedback allows the employee, manager, and personnel

specialists to interview with appropriate action to improve performance.

 Compensation Adjustments:-
Performance evaluations help decision – makers determine who should
receive pay raises.
Many firms grants part or all of their pay increase and bonuses based upon
merit, which is determine mostly through performance appraisal.

 Placement Decisions:-
Promotions, transfers, and demotions are usually based on past on
anticipated performance.

 Training and Development Needs:-

Poor performance may indicate the need for retraining. Likewise, good
performance indicate untapped potential that should be developed.

 Career Planning And Development:-

42
 Performance feedback guides career decisions about specific career paths.

 Information Inaccuracies:-
Poor performance indicate errors in job analysis information’s human
resource plan, or other parts, or the personal management information’s
systems. Reliance on inaccurate information may have led to inappropriate
hiring, training, or counseling decisions.

 Job Decision Errors:-

Poor performance may be a system of ill-conceived job designs. Appraisals
help diagnose these others.

 Equal Employment opportunity:-

Accurate performance appraisals that actually measure job- related
performance ensure that internal placement decisions are not discriminatory.

 Feedback to human resource:-

Good/bad performance throughout the organization indicate how well the
human resource function is performing.

43
STAGES OF PERFORMANCE APPRAISAL
PROCESS

• PERFOMANCE STANDEARDS ARE ESTABLISHED

1

• INFORM THESE STANDARDS

2

• INSTRUCTION GIVEN FOR APPRAISAL

3

• FINDIND OUT THE INFLUENCE

4

• COMPARING THE PERFORMANCE

5

• FINDING OUT DEVIATION

6

• COMMUNICATING, THE ACTUAL PERFORMANCE

7

• SUGGESTING NECESSARY CHANGES

8

• FOLLOW-UP OF PERFORMANCE APPRAISAL

9 REPORT

44
Performance Appraisal is a Nine-Step Process:-

 At the First stage-performance standards are established based on job

description and job specification. The standard should be clear, objective and
incorporate all the factors.

 The Second stage-is to inform these standards to all the employees including
appraisers.

 The Third stage-is following the instruction given for appraisal

measurement of employee performance by the appraisers through observations
interview, records and reports.

 The Fourth stage- is finding out the influence of various internal and
external factors on actual performance.

 The Fifth stage- is comparing performance with that of other employee and
previous performance.

 The Sixth stage- is comparing the actual performance with the standards and
finding out deviations.

 The Seventh stage- is communicating, the actual performance of the

employee and other employees doing the same job and discuss with him the
reasons for positive or negative deviations from the preset standards as the case
may be.

 The Eighth stage- is suggesting necessary changes in standards, job analysis

internal and external environment.

45
 The Ninth stage- is fallow up performance appraisal report. This stage
includes guiding, counseling coaching and directing the employee or making
arrangements for the training and development of the employee.

PROBLEMS OF PERFORMANCE APPRAISAL

The major problem in performance appraisal:-

1) Rating Biases:-
The problem subjective measure (is that rating which is not verifiable by
others) has the opportunity for biases include:-

a) Halo effect
b) The error of central tendency
c) The leniency and strictness biases
d) Personal prejudice
e) The Regency effect

 Halo Effect:-
It is the tendency of the raters to defend excessively on the rating of
one trait or behavioral consideration in rating all other traits or behavioral
consideration. One way of minimizing the halo effect is appraising all the
employee by one trait before going to rate basis of another trait.

 The Error Central Tendency:-

Some raters fallow play safe policy in-rating-by-rating all the
employee on the middle point of the rating scale and they avoid rating the
p[people at both the extremes of the scale. They fallow play safe policy
because of a answerability to management or lack of knowledge about the
job and person he is rating or least interest in his job.

46
  The leniency and Strictness:-

The leniency bias crops when some raters have an tendency to be liberal in
their rating by assigning higher rates consistently such rating do not several
any purpose equally damaging one is assigning consistently low rates.

d)Personal Prejudice : -
If the rater dislike any employee or any group, he may rate them at the lower
them which may distort the rating purpose affect the career of these
employee.
 The Regency Effect:-
The raters generally remember the recent actions of the employee at the time of rating
and rate on the basis of this recent action.
1) Favorable or unfavorable rather than on the whole activities.
2) Failure of the superior in conducting performance appraisal and post-
performance appraisal interview.
3) Most part of the appraisal is based on subjectivity.
4) Less reliability and validity of the performance appraisal technique.
5) Negative ratings affect interpersonal relations system.

WHY APPRAISAL TECHNIQUES PROVE FAILURE

Performance appraisal techniques technique’s have often failed to give a correct

assessment of the employee. The causes of such failure are:-
1) The supervisor plays dual and conflicting role of the both the judge and the
helper.
2) Too many objectives often cause confusion.
3) The supervisor feels that subordinate appraisal is not rewarding.
4) A considerable time gap exists between two appraisal programs.
5) The skills required for daily administration and employee development are in
conflict.
6) Poor communication keeps employees in the dark about what is expected of
them.

47
 7) There is the difference of opinion between a supervisor and a subordinate
concerning the liter’s performance.
8) Feedback on appraisal is generally unpleasant for both supervisor and
subordinate.
9) Unwillingness on the part of supervisor to tell employee plainly how to improve
their performance.

About Employee:-

 Safe and Friendly Work Environment-:

What sort of environment are you providing your employees?

 Use of Employees-:
Is the business maximizing it’s use of employee to best suit the
business needs?

 Employee Knowledge-:
How familiar (what knowledge) are your employee with the
running of machine/equipment, products of the companies? Does
employee require training?

 Employee Happiness-:

Are the employees happy with their wages, rewards and hours of
work given?

48
PERFORMANCE MATRIX

In principle the individual performance matrix (IPM) can be notionally divided

into two parts-:

 Team matrix
 Individual Matrix

KRA 1 to 5
 For achievement of the set targets, the prescribed credit points would accrue to
all team members for the team performance and to an individual for the
individual performance.
 Any drop / deviation from the targets will lead to ‘ Debit ’ to while the overall
debit points for the negative variance vis-à-vis has been prescribed for the
team the individual will be liable to the lose additional points bin case of
direct responsibility for deviation.
 These ‘debit’ points will be determine depending on gravity of error, quantum
of loss, extraneous/ inhibiting factors, etc. as a part of
appraisal process.

KRA 6
It is intended to cover every individual distinguishing contribution/ efforts made
in respect of either assigned projects or innovations, cost saving measures value
additions etc. this has been specifically design to acknowledgement and reward
individual excellence.

KRA 7
(Health . Safety/fire, Environment) “Debit” will apply to an individual and his
superiors but his not peers / others who may not be connected with the safety
incident. Similarly there is scope to earn separate credit points for an individual
through safety suggestion and reporting of “near misses” and unsafe acts/
conditions/

49
 KRA 8
(Training and HR) this is intended to cover self-training, training of subordinates,
for the training programs organized by learning center are HR based on individual
need assessment of self & subordinates.

These also include quarterly review, counseling and maintaining of performance

diary.

KRA 9
(Quality System & Documentation) this include proper maintenance of each and
every documents of ISO 9000 and 14001 for surveillance audits, also revision of
SOPs / SOCs decided by the plant.

KRA 10
(Industrial Relations ) there is a scope for a team to earn separate credit points
based on the number of implement suggestions. In this case the team means the
concern immediate supervisor, production / department manager and plant
manager.

Disciplinary Action

It will be deemed to be complete when the matter is brought to logical

Conclusion resulting in either appropriate punishment or withdrawal of
Charge sheet. However no debit will be accrued in the event of
Prolonged enquiry beyond the control of the employee .Further for the
Discipline violations not reported and discovered.

50
Tier - II
The appraisal for managerial key dimension determined carder wise
With 20% weight age.

Performance Diary

The performance diary is a meant to track / capture the significant performance events
whether positive or negative (Credit or Debit). This is also the tool for recording the
personal contribution in terms of innovative ideas, suggestions, cost saving efforts etc.

The filling up the performance diary is most critical and important aspect on
which the entire system rests. Each and every individual has responsibility to
highlight ‘event’ in the performance diary, timely and properly.

While for an individual on the other hand, it may mean establishing clear
responsibility for a fault/formal operation / misjudgment etc. on the other hand it
will mean recording of credits worthy efforts / contribution which may
otherwise go unnoticed.

It is also essential to mention the impact of the incident in the terms of beneficial
and detrimental consequences as the case may be. Where ever possible, the
consequence needs to be quantified. Two important factors which is likely to be
recorded in the performance diary are as follows-:

Facilitating Factor:

Are those factors that are beyond the control of the appraise that have led to
better performance. Example: Availability of resources in time.

51
Inhibiting Factor:

Are those factors that are beyond the control of the appraise they have led to
poor performance. EXAMPLE: power failure that has led to loss of output.

Whom it will be Available:

The performance diary will remain in custody of the immediate superior and it
will be the joint responsibility of the appraise to maintain the sanctity of this
instrument through timely and meticulous recording. Infect, maintenance of
“performance diary” has been kept as the important parameter for performance
assessment.

Who will be The Appraiser:

The appraiser will be the sectional head / departmental head.

52
 Chapter 5

PERFORMANCE APPRAISAL
SYSTEM IN VODAFONE

53
 Chapter 5
PERFORMANCE APPRAISAL SYSTEM INVODAFONE

In Vodafone they have the system of performance appraisal of their

employees. The main objective of this performance appraisal system is
to evaluate the performance, promote their employees and to arrange
for their various training programmers if they require for enhancing
their skills in their respective areas and in contribu tion enhancement..

Employees are evaluated by how well they accomplish a specific set

of objectives that have been determined to be critical in the successful
completion of their job. This approach is frequentl y referre d to as.
Management by objectives . Management by objectives is a proc ess
that converts organizational objectives into individual objectives. It
can be thought of as consisting of four steps: goal setting, action
planning, self- control, and periodic reviews. In goal setting, the
organization's overall objectives are used as guidelines from which
departmental and individual objectives are set. In action planning, the
means are determined for achieving the ends established in goal
setting. That is, realistic plans are developed to attain the objectives.
Self-control refers to the systematic monitoring and measuring of
performance. Finally, with periodic progress reviews, corrective
action is initiated when behavior deviates from the standards
established in the goal -setting phase. Vodafone uses very constructive
performance appraisal process while evaluating its employees. Its
evaluation is based on quantitative wise and objective wise.

Company set goals to its employee by properl y reporting with its

employees and then evaluating them up to what extent it has been
achieved and if there is failure in reaching the target what are thecauses
or reasons behind it.

Every evaluator has his or her own value system which acts as a
standard against which appraisals are made. Relative to the true or

54
actual performance an individual exhibits some evaluator ~ mark high
and others low. The former is referred to as positive leniency error and
the latter as negative leniency error . When evaluators are positivel y
lenient in their appraisal, an individual's pe rformance becomes over -
stated; that is, rated higher than it actuall y should. Similarl y, a
negative leniency error understates performance, giving the individual
a lower appraisal. As such there is no scope of error as far as the
Vodafone Company is concerned, but sometimes over estimation of
target brings
About a description in the evaluating criteria . Thus, though chances are
less, positive leniency errors have been stated to be committed.

Outcome of Performance Appraisal

As far as Vodafone Company is concerned, there are four outcomes
possible:
a. Outstanding -If the performance evaluated by the management turns
out to be outstanding. If the employee performs in such a way as
to collect 3 consecutive outstanding performance into his/her
credit) he / she gets promoted.
b. Excellent -If the performance evaluated by the management turns out
to be excellent. If the employee performs in such a way as to
collect 3 consecutive excellent performance into his/her credit,
he/she gets promoted.
c. Good -If the performance evaluated by the management turns out to
be good. The m anagement sends the employee to the training
programmer to improve his/.her skill to perform form.
d. Below average - If the performance evaluated by the management
turns out to be below average. A nd, if the employee collects 3
below average to his/her credit, then he/she dismissed

55
Duration of Appraisal System

The time constraints enables the employee to show or project his/her

capabilities in term of performance as per the duration allowed. In
Vodafone, the performance appraisal system is carried out annuall y.

Feedback

The company provides the annual feedback to its employees and thus, in
term brings out the highlights of the self-assessment programme . This
enables the better communication between the management and
employee’s ad thus, helps in promoting the business future.

Response

There are mixed responses from the feedback by the employees. It has
helped some of the employees in motivating themselves while those who
felt bad were thoroughl y communicated and all the confusion and
failure part were discussed with employees.

56
 Chapter 6
ANALYSIS AND
INTERPRETATION OF DATA

57
 ANALYSIS AND INTERPRETATION OF DATA

After collecting the data on "Performance Appraisal S ystem" data was

Anal yzed and interpreted. The various topics covered for anal ysis and
interpretation of data are:
1. Performance appraisal helps the organization in achieving goal.

No. OF RESPONDENT
OPTIONS (Sample size - 24) PERCENTAGE

YES 15 62.5%

NO 9 37.5%
-
DON’T KNOW 0

16

14

12

10

8
15
6
9
4

0 0
Yes No Don't know

58
 INTERPRETATION – 62.50% Employees say that performance

Appraisal helps the organization in achieving goal.

2. Does the company hold meeting in the beginning of the year to explain &
clarify activity task & goals to be achieved?

20

18

16

14

12

10
18
8

4
6
2

0 0
Yes No

No. OF
OPTIONS RESPONDENT PERCENTAGE
(Sample size 24)
18 75%
YES
25%
NO 6

59
INTERPRETATION – 75% Employees say that yes Meetings help to
achieve goal and task. While the other 25% employees say that it is not very
much helpful.

3. Satisfied for point allocation on the basis of KRA’s & managerial

dimension.

14

12

10

6 12

4
6 6
2

0
Fully satisfied Satisfied Dissatisfied Uncertain

No. OF RESPONDENT
OPTIONS (Sample size - 24) PERCENTAGE

FULLY SATISFIED 12 50%

SATISFIED 6 25%

DISSATISFIED 6 25%
-
UNCERTAIN -

60
INTERPRETATION – 50% Employees are fully satisfied for point
Allocation on the basis of KRA’s and managerial dimension.

4. Promotion process in the organization is based on –

No. OF RESPONDENT
OPTIONS (Sample size-24) PERCENTAGE

62.5%
PERFORMANCE 15

EXPERIENCE 3 12.5%
6
BOTH 25%

16

14

12

10

8
15
6

4
6
2
3
0
Performance Experience Both

61
INTERPRETATION – 62.5% employees say that promotion process in the
organization is based on performance,12.5% employees say that based on
experience and 25% say both.

5. Satisfied with the current performance appraisal system.

No. OF RESPONDENT
PERCENTAGE
OPTIONS (Sample size -24)

FULLY SATISFIED 6 25%

50%
SATISFIED 12
-
DISSATISFIED -

JUST SATISFIED 6 25%

14

12

10

6 12

4
6 6
2

0
Fully satisfied Satisfied Dissatisfied Just satisfied

62
INTERPRETATION – 25% Employees are highly satisfied with the current
Performance appraisal system. While 50% employees are satisfied with the
current performance appraisal system and 25% employees are just satisfied with
the current appraisal system.

6. Is the promotional policy well defined in your organization?

No.OF RESPONDENT PERCENTAGE
OPTIONS (Sample size - 24)

Yes 6 25%

62.5%
No 15
12.5%
Can’t say 3

6
16

14
5
12
4
10

38
15

6
2
4
1 6
2
3
00
Yes
Yes No
No Can't
Can't Say
Say

INTERPRETATION – 25% employees say yes that the promotion

policy is defined in the organization. And 62.5% employees said

63
no that the promotion policy is defined in the organization and
12.5% employees can’t say that the promotion policy is defined in
the organization.

7. How often the performance appraisal form is filled or

Performance Appraisal is done.
a. fortnightly. b. monthly c. six-monthly. d. annually
e. Not fixed.

No. OF RESPONDENT
PERCENTAGE
OPTIONS (Sample size - 24)

3
Fortnightly 12.5%

- -
Monthly

Six monthly 15
62.5%

Annually -
-
6
Not fixed 25%

64
 16

14

12

10

8
15

4
6
2
3

0
Fortnightly Monthly Six Monthly Annually Not fixed

INTERPRETATION – 12.5% employees said that fortnightly the

performance appraisal is done and 62.5% employees said that six monthl y
the performance appraisal is done, and 25% employees said that
performance appraisal is not done.

8. On what basis is the performance appraisal done.

a. merit cum seniority b. seniority cum merit. c. merit only
d. seniority only.

No. oF RESPONDENT PERCENTAGE

OPTIONS (Sample size - 24)

Merit cum seniority 9 37.5%

6 25%
Seniority cum merit
Merit only 3

65
 12.5%

Seniority only 6 25%

INTERPRETATION – 37.5% epmployees said that performance appraisal is done

on the basis of merit cum seniority And 25% employees said that
performance appraisal is done on the basis of seniorit y cum merit and
12.5% employees said that on the basis of merit onl y. And 25% employees
said that on the basis of seniorit y onl y.

9. Which method is applied for performance appraisal system in

your organization?
a. Rating scale b. your immediate supervisor
c. self-appraisal d. 360 degree appraisal.

NO. OF RESPONDENT
PERCENTAGE
OPTIONS (Sample size - 24)

1
Rating scale 4.1%

Your immediate 8 33.33%

supervisor

Self-appraisal 1
4.1%

360 degree appraisal 14

58.33%

66
 16

14

12

10

8
14
6

4 8

1 1
0
Rating scale Your immediate Self-appraisal 360 degree
supervisor appraisal

INTERPRETATION – 4.1% employee said that the rating scale method is done.and
33.33%employee said that the Your immediate supervisor and 4.1% employees said
that self appraisal method Is done and 58.33% employees said that 360 degree appraisal
method is done.

10 . Does the system help you in aligning your goals with those of the
organization?

a. yes b. No c. Can’t say

NO. OF RESPONDENT
PERCENTAGE
OPTIONS (Sample size - 24)

Yes 18 75%
3 12.5%

67
 No
Can’t Say 3 12.5%

20
18
16
14
12
10
18
8
6
4
2 3 3
0
Yes No Can't Say

INTERPRETATION – 75% employees say that this system help them in

aligning their goals with those of the organization. 12.5% employees say
that this system do not help them in aligning their goals with those of the
organization. 12.5% employees can’t say that this system help them in aligning
their goals with those of the organizatio n.

11. What kind of remedial measures are taken.

a. Job rotation b. Sent to training programs

c. Counseled
No. OF RESPONDENT
PERCENTAGE
OPTIONS (Sample size - 24)

Job Rotation 12 50%

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Sent to training 25%
6
Programs
Counseled 6 25%

14

12

10

6 12

4
6 6
2

0
Job rotation Sent to training Counseled
Programme

INTERPRETATION – 50% employees say that Job rotation is remedial

measure taken by the or ganization, whereas remaining 25% say that
counseling and 25% sent to training program s is done.

12. How do you rate the overall assessment of performance

appraisal?

a. Outstanding b. Very good c. Good d. Satisfactory

e. Poor
No. OF RESPONDENT
PERCENTAGE
OPTIONS (Sample size - 24)

Outstanding 5 20.84%

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 50%
Very Good 12
Good 3
12.5%
Satisfactory 2 8.33%

Poor 2 8.33%

14

12

10

6 12

4
5
2
3
2 2
0
Outstanding Very Good Good Satisfactory Poor

INTERPRETATION – 20.84% employees rate the overall assessment

of performance appraisal as outstanding,50% employees rate the overall
assessment of performance appraisal as very good,12.5% employees as
good,8.3% employees rate as satisfactory and 8.3% % employees rate d as
poor for organization.

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 SWOT ANALYSIS
STRENGTHS
 Strong customer oriented and high performance.
 Qualit y products and services and improved product
proposition.
 Strategy oriented and better geographic balances.
 Better brand image.

WEAKNESS

 Paper compilation of the financial reports (stock reports).

 Inventory management, and procurement processes.

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  Lack of feedback.

OPPORTUNITIES

 Branch expansion for rapid growth

 Increase focus on value creation
 Improve shareholders return
 Broadening of the demographic base
 Tie up with MNC’s
 Integrated sales and service approach

THREATS

 Competitive products and offers.

 Strong competition.

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 Chapter 7
CONCLUSIONS &
SUGGESTIONS

73
 Chapter 7
CONCLUSIONS & SUGGESTIONS

Conclusion

The anal ysis and interpretation of data on study of performance

appraisal and its effectiveness in an organization led to the following
conclusions:

 The process of performance appraisal followed in Vodafone at the

supervisory and above level is very good and of satisfactory level,
also they accompany the organizational goals.

 The appraisal outcome has to be used frequentl y for the purpose of

reward on performing well together with the feedback on the
performance. Also when performance goes down employee is
motivated by job rotation & also sent to the training programs.

 The promotion rule though defined need to be communicated well to

every employee before appraisal process is done in the form of
annual meeting which also justify the promotion as a result of the
appraisal. The promotion policy followed differs at different position
and category.

 Performance appraisal in Vodafone is done on twice a year basis.

 More emphasis on training and job rotation as remedial measures.

 The mechanism of counseling pre-performance and post performance

is not in practice at the organization in strict term. During the course
of study suggestion came from the employee side for the need of
counseling.

 The performance appraisal is done mostl y on the basis of the

combination of performance and merit of the employee. But above all
the 360 degree performance appraisal system is followed so as to

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 judge the employee and appraising him.

 The employees are satisfied with the poi nt allocation on the basis of
KRA’S & managerial decisions.

Suggestions

The study undertaken brings some interesting result.

A uniformit y has to be there in the implication of performance policy at

all level.

 Training the Appraise: It is proposed that appraiser be trained for

clear understanding of the system and its objective and also
counseled to be honest, fair, just, unbiased in appraising the
employee.

 Factors/traits of evaluation : It is proposed that employee evaluated

on above factors/traits be given suitable remark or justification for
being given different quantitative grade.

 Greater clarit y has to be there in terms of job responsibilit y. This is

possible when the appraisal is done on the basis of the description.

 In the organization, performance appraisal evaluation is done on six

monthl y basis which should be done Quarterl y to make it more
effective.

 Consistency is demanded in the promotional policy. It should be well

defined to all the employees in the annual meeting.

 Performance appraisal system should be made more transparent and

rationale.

 Performance feedback : The performance feedback sessions should

be improved which would results in increasing employee motivation
to improve performance. The following could be incorporated.

75
  Pin point the problem behavior and make sure the employee is
aware of it

 Make sure the employee understands the consequences of the

problem behavior. Get employee's commitment to change and
make sure he cares about the change

 Assistance should be provided to improve poor performance.

Make a realistic plan appropriate to the behavior and set a time
frame for improvement.

 To make sure to review performance time to time

 The other changes which have to be incorporated at the supervisor

and the level above are:

 In some areas of performance there should be self appraisal and

more and more counseling is needed so that employee improve
upon weak area and understand what is expected of him/her at the
organization level.
 Based on the above an open appraisal system is suggested.

In an open appraisal the employee would come together to set the

targets, to understand the mutual expectations and support to be
provided by the appraiser to the emplo yee for achieving mutuall y
accepted goals/targets. Through this process of setting targets the
interpersonal relationship between the appraiser and the employee
would improve.

The open appraisal system reduces the whims and fancies of the
appraiser. It promotes result -orientation as it is based on performance
rather than on personalit y based appraisal.

76
 Annexure
a) Questionnaire

b) Bibliography

QUESTIONNAIRE

1. Performance appraisal helps the organization in achieving goal?

a. Yes b. No c. Can’t say

2. Hold meeting in the beginning of the year to explain & clarify activity task
& goals to be achieved?

a. Yes b. No

3. Satisfied for point allocation on the basis of KRA’s & managerial

dimension?

a. Fully satisfied b .Satisfied c. Dissatisfied d. Just satisfied

4. Promotion process in the organization is based on ?

a. Performance b. Experience c. Both

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5. Satisfied with the current performance appraisal system?

a.Fully satisfied b.Satisfied c. Dissatisfied d. Just satisfied

6. Is the promotional policy well defined in your organization?

a. Yes b. No c. Can’t say

7.How often the performance appraisal form is filled or

Performance Appraisal is done?

a. Fortnightly. b. Monthly c. Six-monthly.

d. Annually e. Not fixed.

8. On what basis is the performance appraisal done ?

a. Merit cum seniority b. Seniority cum merit. c. Merit only

d. Seniority only.

9. Which method is applied for performance appraisal system in

your organization ?
a. Rating scale b. Your immediate supervisor
c. Self-appraisal d. 360 degree appraisal.

10. Does the system help you in aligning your goals with those of
the organization?

a. Yes b. No c. Can’t say

78
11. What kind of remedial measures are taken?

a. Job rotation b. Sent to training programs

c. Counseled

12. How do you rate the overall assessment of performance

appraisal?

a. Outstanding b. Very good c. Good

d. Satisfactory e. Poor

79
 BIBLOGRAPHY

1) Flippo Edwin B. Personnel management, Edition sixth,

Tata McGraw Hills, 1984, p.g. 225 -230

2) Gupta, C.B., Human Resource Management, Edition

Fifth(Reprint),Sultan Chand and Sons, New Delhi 200 6,
P.G. 5.3-5.10

3) Rao, P. Subba ,Essentials of Human Resource Management

and Industrial Relations; Edition Second, Himalaya
Publishing House, New Delhi 200 5, p.g.206-210

WEB SITES SURFED:

www.google.com

www.indiatimes.com

www.msn.com

www.wikipedia.com

www.vodafone.in

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