Performance Appraisal
Performance Appraisal
Performance Appraisal
Project Profile:
1.1 Introduction
Human Resource (or personnel) management, in the sense of getting things done
through people, is an essential part of every manager’s responsibility, but many
organizations find it advantageous to establish a specialist division to provide an expert
service dedicated to ensuring that the human resource function is performed efficiently.
“People are our most valuable asset” is a cliché, which no member of any senior
management team would disagree with. Yet, the reality for many organizations are that
their people remain undervalued, under trained and underutilized.
Bharat Sanchar Nigam Limited (BSNL) was incorporated on 15th September 2000.
It took over the business of providing of telecom services and network management from
the erstwhile Central Government Departments of Telecom Services (DTS) and Telecom
Operations (DTO), with effect from 1st October ‘2000 on going concern basis. It is one of
the largest & leading public sector units providing comprehensive range of telecom services
in India.
Human Resource (or personnel) management, in the sense of getting things done
through people, is an essential part of every manager’s responsibility, but many
organizations find it advantageous to establish a specialist division to provide an expert
service dedicated to ensuring that the human resource function is performed efficiently.
BSNL is the largest provider of fixed telephony and fourth largest mobile telephony
provider in India, and is a provider of broadband services. Effective performance appraisal
method encourages employees in work and it also helps in improving their individual
responsibility, which in turn improves profitability of the organization.
However, in recent years the company's revenue and market share plunged into
heavy losses due to intense competition in Indian telecommunications sector. BSNL is
India's oldest and largest communication service provider (CSP). It had a customer base of
95 million as of June 2011. It has footprints throughout India except for the metropolitan
cities of Mumbai and New Delhi, which are managed by Mahanagar Telephone Nigam
(MTNL).
BSNL has installed Quality Telecom Network in the country & now focusing on
improving it, expanding the network, introducing new telecom services with ICT
applications in villages & winning customer's confidence. Today, it has about 43.74 million
line basic telephone capacity, 8.83 million WLL capacity, 72.60 million GSM capacity,
37,885 fixed exchanges, 68,162 GSM BTSs, 12,071 CDMA Towers, 197 Satellite Stations,
6,86,644 RKm. of OFC, 50,430 RKm. of microwave network connecting 623 districts,
7330 cities/towns & 5.8 lakhs villages .
BSNL is the only service provider, making focused efforts & planned initiatives to
bridge the rural-urban digital divide in ICT sector. In fact there is no telecom operator in
the country to beat its reach with its wide network giving services in every nook & corner
of the country & operates across India except New Delhi & Mumbai. Whether it is
inaccessible areas of Siachen glacier or North-Eastern regions of the country, BSNL serves
its customers with a wide bouquet of telecom services namely Wireline, CDMA mobile,
GSM mobile, Internet, Broadband, Carrier service, MPLS-VPN, VSAT, VoIP, IN Services,
FTTH, etc.
BSNL is numero uno of India in all services in its license area. The company offers
wide ranging & most transparent tariff schemes designed to suit every customer. BSNL has
90.09 million cellular & 5.06 million WLL customers as on 31.07.2011. 3G Facility has
been given to all 2G connections of BSNL. In basic services, BSNL is miles ahead of its
rivals, with 24.58 million-wireline phone subscribers i.e. 71.93% share of the wireline
subscriber base.
The company has vast experience in planning, installation, network integration &
maintenance of switching & transmission networks & also has a world class ISO 9000
certified Telecom Training Institute.
Services
BSNL provides almost every telecom service in India. Following are the main
telecom services provided by BSNL:
Universal Telecom Services: Fixed wireline services and landline in local loop
(WLL) using CDMA Technology called bfone and Tarang respectively. As of June
30, 2010, BSNL had 75% market share of fixed lines.
Internet: BSNL provides Internet access services through dial-up connection (as
Sancharnet through 2009) as Prepaid, (NetOne) as Postpaid and ADSL broadband
(BSNL Broadband). BSNL held 55.76% of the market share with reported
subscriber base of 9.19 million Internet subscribers with 7.79% of growth at the end
of March 2010. Top 12 Dial-up Service providers, based on the subscriber base, It
Also Provides Online Games via Its Games on Demand (GOD)
Intelligent Network (IN): BSNL offers value-added services, such as Free Phone
Service (FPH), India Telephone Card (Prepaid card), Account Card Calling (ACC),
Virtual Private Network (VPN), Tele-voting, Premium Rae Service (PRM),
Universal Access Number (UAN).
3G: BSNL offers the '3G' or the'3rd Generation' services which includes facilities
like video calling, mobile broadband, live TV, 3G Video portal, streaming services
like online full length movies and video on demand etc.
IPTV: BSNL also offers the 'Internet Protocol Television' facility, which enables
watch television through internet.
FTTH: Fiber to The Home facility that offers a higher bandwidth for data transfer.
This idea was proposed on post-December 2009
Helpdesk: BSNL's Helpdesk (Helpdesk) provide help desk support to their
customers for their services.
VVoIP: BSNL, along with Sai Info system - an Information and Communication
Technologies (ICTs) provider - has launched Voice and Video over Internet
Protocol (VVoIP). This will allow making audio as well as video calls to any
landline, mobile, or IP phone anywhere in the world, if the requisite videophone
equipment is available at both ends.
BSNL’s future plan include a fast expansion programme of increasing he present 93
million lines to twice that number by 2009 and some 120 million lines by 2010. The shift
in demand from voice to data domination, and from wire line to wireless, has revolutionized
the very nature of the network. BSNL has already set in place several measure that should
enable it to evolve into a fully integrated multi-operated by 2009 and its incumbent status,
size, infrastructure, and human resource should certainly, give it a distinct advantage.
Industry Telecommunications
Products Fixed line and telephony, Internet services, digital television, IPTV
Employees 281,635
Website www.new.bsnl.co.in
1.2.1. Profile of Organization
1. HISTORY
BSNL provides almost every telecom service, however following are the main
Telecom Service being provide by BSNL in India: -
Since its corporation in October 2000 BSNL has been actively providing
Connection in both urban and rural area and the efficiency of company had
drastically improve from the days when one had to wait for year to get a phone
connection to how one can get connection in even hours. Pre-activated mobile
connections are available at many places across India. BSNL has also unveiled very
cost-effective Broadband internet access plans (Data One) targeted at homes and
small businesses. At present BSNL enjoys 47% of market share of ISP services.
BSNL has been asked to add 108 million customers by 2010 by Former Indian
Communication Minister Thiru Dayanidhi Maran. With the frantic activity in the
communication sector in India, the target appears achievable, however due to intense
competition in Indian telecom sector in recent past BSNL’s growth has slowed
down.
4. CHALLANGES
During Financial Year 2007-2008 from April 01, 2006 to March 31, 2007).
BSNL has added 6 million new customers in various telephone services taking its
customer base to 64.8 million. BSNL’s nearest competitor Bharat Airtel is starting
at a customer base of 39 million. However, despite impressive growth shown by
BSNL is declining. In order to woo back its fixed-line customer BSNL has brought
down long-distance calling rate under one India plan, however, the success of the
scheme is not known. However, the success of the scheme is not known. However,
BSNL faces bleak fiscal 2006-2007 as users flee, which the CMD BSNL has
accepted.
Access Deficit Charges (ADC, a levy being paid by the private operators to
BSNL for provide service in non-lucrative areas especially rural area) has been
slashed by 37% by TRAI, w.e.f. April 01, 2007. The reduction in ADC may hit the
bottom-line of BSNL.
5. VISION
6. MISSION
Importance of the study are to find out the satisfaction level of the cr, to analyze the
level of achievement, to estimate the benefit of the performance appraisal system to the
organization and to the individual. The study is conducted by survey method using
structured questionnaire with five-point rating scale. Total population study was adopted.
Data was analyzed using simple percentage and chi-square test. The study had been
conducted to analyze the effectiveness of performance appraisal system on the managerial
employees of the Bharat Sanchar Nigam Limited. Effective performance appraisal method
encourages employees in work and it also helps in improving their individual responsibility,
which in turn improves profitability of the organization.
Decisions regarding promotions, transfers and demotions are taken based on the
performance of employee. It provides information to diagnose deficiency in the employee
and determine training needs.
1.4 Need of Study
This study provides appraisal feedback to employees and thereby serve as vehicles
for personal and career development and allow the management to take effective
decision against drawbacks for the wellbeing of the employee’s development.
To improve employee work performance by helping them realize and use their full
potential in carrying out their firm’s mission.
The main aim of the study is to find out the effectiveness of performance appraisal
& development programme conducted at BSNL.
This study helps to know the level of importance of appraisal system.
The payroll and compensation decision, training and development needs,
promotion, demotions transfer including job analysis, providing superior support,
assistance, and counselling.
It considers both the job performance as well as the personal qualities of an
employee.
1.8 Limitation of Study
Dr. Kanchan Bhatia and Prof Prashant Jain in their research, “A study of
performance appraisal and organizational effectiveness in terms of individual and
organizational basis (2012)” explain that--- “Performance Appraisal may be defined as a
structured formal Interaction between a subordinate and supervisor, that usually take the
form of periodic interview (annual or semiannual), in which the work performance of the
subordinate is examined and discussed, with a view of Identifying weakness and strengths
as well as opportunities for improvement and skill development.
2. RESEARCH DESIGN
Research Design refers to "framework or plan for a study that guides the
collection and analysis of data".
Many firms have expanded the idea of upward feedback into what the call
360-degree feedback. The feedback is generally used for training and development,
rather than for pay increases.
Another technique that is useful for coaching purposes is, of course, MBO.
Like the critical incident method, it focuses on actual behavior and actual results,
which can be discussed objectively and constructively, with little or no need for a
supervisor to "play God."
3. SAMPLING
Methods of Sampling
Help each employee understand more about their role and become clear about
their functions.
Be instrumental in helping employees to better understand their strengths and
weaknesses with respect to their role and functions in the organization.
Help in identifying the developmental needs of employees, given their role and
function.
Increase mutuality between employees and their supervisors so that every
employee feels happy to work with their supervisor and thereby contributes their
maximum to the organization.
Act as a mechanism for increasing communication between employees and their
supervisors. In this way, each employee gets to know the expectations of their
superior, and each superior also gets to know the difficulties of their subordinates
and can try to solve them. Together, they can thus better accomplish their tasks.
Provide an opportunity to each employee for self-reflection and individual
goalsetting, so that individually planned and monitored development takes place.
Help employees internalize the culture, norms and values of the organization,
thus developing an identity and commitment throughout the organization.
Help prepare employees for higher responsibilities in the future by continuously
reinforcing the development of the behavior and qualities required for higher-
level positions in the organization.
Be instrumental in creating a positive and healthy climate in the organization that
drives employees to give their best while enjoying doing so.
Assist in a variety of personnel decisions by periodically generating data
regarding each employee.
1. Primary Data:
Primary data is known as data collected for the first time through field
survey. Such data are collected with specific set objectives. Primary data always
reveals the cross section picture of anything studied. This is needed in research to
study the effect or affect any policy.
2. Secondary data:
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. Secondary data refers to the information or facts already collected. Such data
are collected with the objectives of understanding the past status of any variable data
collected and reported by some source is accessed and used for the objectives of the
study. The secondary data were collected from:
Magazine
Books
Journals
Records maintained by HR department
Company websites.
3.3. Type of Research
Employee performance appraisals exist so you can have a means of tracking
employee progress. It can seem that tracking progress isn't an essential to every job
description; however, understanding where employees are performing well and where
weaknesses exist is imperative to company growth and long-term employee satisfaction.
Different types of performance appraisals help identify different aspects of employee
success.
A rating scale takes certain behaviors, goals and traits and scores them on a
scale. Every employee or team member is graded by the same standards giving
insights about key team players not just individuals. Rating scales are usually
numerically based, for example using a scale of one to five with five being the best
possible performance. It is also possible that rating scales simply rate things as "poor,
standard, and excellent," or even as simple as "acceptable or unacceptable."
2. Self-Assessment Appraisal
You might not want to waste time on self-assessments if you buy into the false
notion that everyone will rate themselves with high scores. Employees are very
aware of where they excel and where they struggle. Getting a self-assessment gives
you an insight to their thinking. You might not see from a managerial standpoint that
a person is struggling with computer skills, but a self-assessment could show you a
lack of confidence someone has in this area.
3. 360-Degree Feedback
This assessment style is more time consuming than other assessment methods,
because it requires feedback from everyone an employee works with. The 360-
degree feedback method looks at performance by gaining reviews from managers,
co-workers, subordinates and other metrics conducted by sales data or customer
feedback. It takes a holistic view of the employee from a performance and behavioral
level. This method of review is a good way to see if an employee is a good candidate
for promotion and leadership
3.4. Data Analysis and Interpretation
After collecting the data on “Performance Appraisal System” from the organization
through questionnaire, data was analyzed and interpreted. The various topics are covered
for analysis and interpretation of data through questionnaire.
The questionnaire included both open ended and close-ended questions. The
questionnaire used is placed at Appendix "I".
Weakness-
Opportunity-
Threat-
24%
44%
Yes
No
Interpretation-
8% 12%
26%
Fully satisfied
Satisfied
Dissatisfied
54%
Can't say
Interpretation –
46%
54% Yes
No
Interpretation-
The main purpose of the Appraisal system is to check whether the employee
is able to fulfill performance standards or not. As shown in above chart, 56% of the
respondents say that the Performance Appraisal System does give a true and fair
view of their contribution to the Organization. However, 44% respondents replied in
the negative.
4. How often the performance appraisal form is filled or performance appraisal is done.
0%
15% 6%
Fortnight
Monthly
Annually
79% Not fixed
Interpretation-
0% 0%
Interpretation-
Forced choice
2%
distribution
4% Essay method
14%
Ranking method
16%
Critical incident
method
4% Paired comparison
58%
360 degree appraisal
2%
Any other
Interpretation-
4% 12%
32%
To a large extent
To a some extent
Can't say
52%
Not at all
Interpretation-
4%
36%
Yes
No
60%
Can't say
Interpretation –
26%
50%
Yes
No
24% Somewhat
Interpretation-
If the process of appraisal does not lead to the improvement of the skills and
proficiency of the employees, the very purpose of appraisal becomes illogical. In the
above chart, it is shown that nearly 50 % of the respondents agree that Performance
Appraisal does leads to polishing the skills of the employees. Nearly 24 % of the
respondents view that it does not serve this purpose and around 26 % were not able
to respond as to whether it serve any such purposes or not.
10. Does the system help you in aligning your goals with those of organization?
24%
46%
Yes
No
30% Can't say
Interpretation-
16%
Yes
No
84%
Interpretation-
In the process of appraising, both the parties are human being, that is, the one
who is being apprised and the other who is appraising. Thus, when asked from
among the sample size of 50 respondents, as huge as 82 % responded that personal
bias do creep in while appraising an individual. Hence, it is inevitable to say that
personal likings do not come in the process of appraisal.
12. Do the employees get the feedback of performance appraisal?
0%
0%
8%
6%
Always
Often
Only when required
Rarely
86%
Never
Interpretation –
0%
16% 4%
Always
32%
Often
Rarely
Never
48%
Can't say
Interpretation-
38%
46% Job rotation
Sent to training programs
Counselled
4% 12% Any other
Interpretation-
Based on the performance the remedial measures are taken to do away with
weakness if any, build on strength, and add to existing capability. Responses of
employees on remedial measure were shown in above chart; here 38% respondents
say job rotation. Few say training program, during the job it was felt that more
training input is to be provided to employees to overcome the weakness and improve
upon the existing capability of employee.
15. How do you rate the overall assessment of performance appraisal in BSNL?
1%
3%
20%
35%
Outstanding
Very good
Good
41%
Satisfactory
Poor
Interpretation-
Ideally in the present day scenario, appraisal should be done, taking the views of all
the concerned parties who have some bearing on the employee. However, since a change
in the system is required, it cannot be a drastic one. It ought to be gradual and a change in
the mind-set of both the employees and the head is required.
In every organization, job satisfaction plays a vital role. Employees tend to satisfy if
they meet their needs, wants, requirements and most of all job recognition and
encouragement from the top management is expected so their work has to be appreciated
by a method of performance appraisal. Therefore, by enhancing these appraisal techniques,
it helps in level of job satisfaction and healthy work atmosphere. Thereby effective
performance appraisal method encourages employees in work and it also helps in
improving their individual responsibility, which in turn affects profit ability of the
organization.
6. Suggestions and Recommendations
After having analyzed the data, it was observed that practically that the appraisal
system of BSNL is average. To be an effective tool, appraisal has to be on the continuous
basis in the organization. This is the thing that has been mentioned repeatedly in the report,
as, in the absence of continuity, it becomes a redundant exercise. Before actually deciding
drafting what should be the kind of appraisal the following things should be taken care of: