Chapter-1

Introduction to the Industry

The Indian telecom sector can be broadly classified into Fixed Line
Telephonyand mobile telephony. The major players of the telecom sector are
experiencing a fierce competition in both the segments. The major players like
BSNL, MTNL, VSNL in the fixed line and Airtel, Hutch, Idea, Tata, Reliance in
the mobile segment are coming up with new tariffs and discount schemes to
gain the competitive advantage. The Public Players and the Private Players
share the fixed line and the mobile segments.

Currently the Public Players have more than 60% of the market share.

Market shares of public and

Private Players

Both fixed line and mobile

segments serve the basic
needs of local calls, long distance calls and the international calls, with the
provision of broadband services in the fixed line segment and GPRS in the
mobile arena. Traditional telephones have been replaced by the codeless and
the wireless instruments. Mobile phone providers have also come up with
GPRS-enabled multimedia messaging, Internet surfing, and mobile-commerce.
The much-awaited 3G mobile technology is soon going to enter the Indian telecom
market. The GSM, CDMA, WLL service providers are all upgrading themselves
to provide 3G mobile services.

Along with improvement in telecom services, there is also an

improvement in manufacturing. In the beginning, there were only the Siemens
handsets in India but now a whole series of new handsets, such as Nokia's
latest N-series, Sony Ericsson's W- series, Motorola's PDA phones, etc. have
come up. Touch screen and advanced technological handsets are gaining

2
popularity. Radio services have also been incorporated in the mobile handsets,
along with other applications like high storage memory, multimedia
applications, multimedia games, MP3 Players, video generators, Camera's, etc.
The value added services provided by the mobile service operators contribute
more than 10% of the total revenue.
The leading cellular service providers have the following number of
subscribers:

Service No. of CDMA No. of GSM

Provider Subscribers Subscribers

Reliance 2.75 crores 38.76 lakhs

Tata 1.07 crores

Airtel 3.37 crores

MTNL 24.98 lakhs

BSNL 2.44 crores

Hutch 2.44 crores

Idea 1.3 crores

Spice 25.56 lakhs

BPL 10.62 lakhs

Aircel 48 lakhs

Bharti Airtel has the largest customer base with 31% market share, followed by
Hutch and BSNL with each holding 22% market share.

The 2007 budget has brought further relief to the customers with the reduction

in the tariffs, both local and long distance, and with slashing down the roaming
rentals. This is likely to lead to even more people going for cellular services and
more and more use of the value added services. However, landline telephony is
likely to remain popular, too, in the foreseeable future. MTNL, the largest

3
landline service provider, has recently taken some bold initiatives to retain its
market share and, if possible, expand it.

TELECOM SECTOR AN OVERVIEW

4
The $8 billion telecommunications sectors in India have undergone a major
transformation in the past couple of decades. From a complete monopoly of the
public sector, the telecom industry has witnessed the breaking down of
monopolies and significant policy reforms, favoring the entry of private players.
The private sector has been allowed to make a foray not only into value added
services, such as cellular and paging services, but also the basic telephony
services.

Reforms have taken place in the telecom sector in three phases. The first
phase began in the 1980s when in 1984; private manufacturing of customer
premise equipment was given the go- ahead. Proliferation of individual
STD/ISD/PCO network took place through out the country by way of private
individuals franchisees. Also, two large corporate entities, the Mahanagar
Telephone Nigam (MTNL) and Bharat Sanchar Nigam Ltd.(BSNL) were created
out of the department of telecommunications (DOT) to handle the sectors of
Mumbai and Delhi respectively. A high- powered telecom commission was set
up in 1989 and Videsh Sanchar Nigam Ltd. (VSNL) was made the international
service provider catering to all telecom services originating from India.

The second phase of reforms in the telecom sector commenced in 1991 with
the announcement of the new economic policy. To begin with the
manufacturing of telecom equipment was delicensed in 1991, while radio
paging services opened up in the 1992. In 1994, the basic telephony sector was
opened up by providing licenses to six companies to operate in the basic area

These Companies were: Bharti Telenet, Essar Commvision, Shyam Telecom,

Hughes Telecom, Tata Teleservices and Reliance Telecom.

The National Telecom Policy in 1994 emphasized on Universal Services and

Qualitative Improvement in telecom services. While an independent statutory
regulatory was established in 1997, the Internet services were opened up in
1998. Since then, more companies have been given the go-ahead to
basitelephony, such as Reliance, Tatas, HFCL, Bharati, Aircel, Digilink and Birla
AT&T.

5
The third phase of reforms in the telecom sector began in the late 1990s, with
the announcement of the New Telecom Policy in 1999. The underlying theme of
the reform process of NTP was to usher in full competition through unrestricted
entry of private players in all service sectors. The policy favored the migration of
existing operators from the era of fixed license fee regime to that of revenue
sharing. The duopoly rights of the MTNL and VSNL (VSNLs monopoly ended in
April 2002 when the sector was thrown open to the private sector) were
discontinued to herald the era of unlimited competition in the industry.

Chapter-2

6
 Introduction to the Company

Founded by Shri. Dhirubhai Ambani in the year 1966

Think without constraints…!!!

7
We were small then - an infant in industry.
We are small now - at the doorsteps of opportunity.”

We will create the next generation communication network and

information technology infrastructure that will bring immense value to
every Indian, and leapfrog India into the center stage of global Infocomm
space

Reliance - ADA Group

The Reliance Group, founded by Dhirubhai Hirachand Ambani (1932-2002), is

India's largest private sector enterprise, with businesses in the energy and

8
materials value chain. Group's annual revenues are in excess of USD 22 billion.
The flagship company, Reliance Industries Limited, is a Fortune Global 500
company and is the largest private sector company in India.

Backward vertical integration has been the cornerstone of the evolution and
growth of Reliance. Starting with textiles in the late seventies, Reliance pursued
a strategy of backward vertical integration - in polyester, fiber intermediates,
plastics, petrochemicals, petroleum refining and oil and gas exploration and
production - to be fully integrated along the materials and energy value chain.

The Group's activities span exploration and production of oil and

gas, petroleum refining and marketing, petrochemicals (polyester, fiber
intermediates, plastics and chemicals), textiles and retail.

Trust enjoys global leadership in its businesses, being the largest polyester
yarn and fiber producer in the world and among the top five to ten producers in
the world in major petrochemical products. The Group exports products in
excess of USD 11 billion to more than 100 countries in the world. There are
more than 25,000 employees on the rolls of Group Companies. Major Group
Companies are Reliance Industries Limited (including main subsidiaries
Reliance Petroleum Limited and Reliance Retail limited), Indian Petrochemicals
Corporation Limited and Reliance Industrial Infrastructure Limited.

Across different companies, the group has a customer base of over 50

million, the largest in India, and a shareholder base of over 8 million, among the
largest in the world.
Communications (Reliance Communications Ltd.), and financial services
(Reliance Capital Ltd), to generation, transmission and distribution of power
(Reliance Energy), infrastructure and entertainment.

9
 RELIANCE

COMMUNIC
A
-
TIONS
RELIANCE

ADLABS ENERGY

ADAG
RELAINCE RELIANCE

CAPITAL MONEY

RELIANCE
RELIANCE
MUTUAL
TELECOM
FUNDS

10
CHAIRMAN'S PROFILE

ANIL DHIRUBHAI AMBANI

Regarded as one of the foremost corporate leaders of contemporary India, Anil

Dhirubhai Ambani is the Chairman of all listed Group companies, namely:
Reliance Communications, Reliance Capital, Reliance Energy and Reliance
Natural Resources Limited.

Till recently, he also held the post of Vice Chairman and Managing
Director in Reliance Industries Limited (RIL), India's largest private sector
enterprise. Anil D Ambani joined Reliance in 1983 as Co-Chief Executive
Officer,

He is credited with having pioneered a number of path-breaking financial

innovations in the Indian capital markets. He spearheaded the country's first
forays into the overseas capital markets with international public offerings of
global depositary receipts, convertibles and bonds. Starting in 1991, he directed
Reliance Industries in its efforts to raise over US$ 2 billion. He also steered the
100-year Yankee bond issue for the company in January 1997.

He is a member of
11
  Wharton Board of Overseers, The Wharton School, USA.
 Central Advisory Committee, Central Electricity Regulatory Commission.
 Board of Governors, Indian Institute of Management, Ahmedabad.
 Board of Governors Indian Institute of Technology, Kanpur.
 In June 2004, he was elected for a six-year term as an independent
member of the Rajya Sabha, Upper House of India's Parliament a
position he chose to resign voluntarily on March 25, 2006.

AWARDS AND ACHIEVEMENTS

 Conferred the 'CEO of the Year 2004' in the Platts Global Energy
Awards
 Rated as one of 'India's Most Admired CEOs' for the sixth consecutive
year in the Business Barons - TNS Mode opinion poll, 2004
 Conferred 'The Entrepreneur of the Decade Award' by the Bombay
Management Association, October 2002
 Awarded the First Wharton Indian Alumni Award by the Wharton India
Economic Forum (WIEF) in recognition of his contribution to the
establishment of Reliance as a global leader in many of its business
areas, December 2001.
 Selected by Asia week magazine for its list of 'Leaders of the Millennium
in Business and Finance' and was introduced as the only 'new hero' in
Business and Finance from India, June 1999.

12
 VISION

"We will leverage our strengths in executing complex global-scale

projects to make leading edge information and communication services
affordable by all individual consumers and businesses in India. We will
offer unparalleled value to create customer delight and enhance business
productivity. We will also generate value for our capabilities beyond
Indian boarders while enabling millions of knowledge workers to deliver
their service globally."

Reliance Communications envisions a digital revolution that will sweep the

country and about a new way of life. A digital way of life for a new India.

With mobile devices, network and broadband linked to powerful digital

networks, Reliance Communications will usher fundamental changes in the
social and economic landscape of India.

Reliance Communications will help men and women connect and communicate
with each other. It will enable citizens to reach out to their work place, home
and interests, while on the move. It will enable people to work, shop, educate
and entertain themselves round the clock, both in the virtual world and in the
physical world. It will make available television programs,movies and news
capsules on demand. It will unfurl new simulated virtual worlds with exhilarating
experiences behind the scenes of computers and televisions.

Users of Reliance Communications’ full range of services would no longer need

audiotapes and CDs to listen to music. Videotapes and DVDs would not be
necessary to see movies. Books and CD ROMs would not be needed to get
educated. Newspaper and magazines would not be required to keep abreast
of events. Vehicles and wallets will become unnecessary for shopping.

Reliance Communications will disseminate information at a low cost. “Make a

telephone call cheaper than a post card." These prophetic words of

13
Dhirubhai Ambani will be a metaphor of profound significance for Reliance
Communications.

Reliance Communications will regularly unfold new applications. Continually

adapt new digital technologies. Create new customer experiences. Constantly
strive to be ahead of the world.

Reliance Communications will transform thousands of villages and hundreds of

towns and cities across the country.Above all, Reliance Infocomm will pave the
way to make India global leader in the knowledge age.

MISSION

Reliance communication is the flagship company of ADAG of companies. It was

listed on NSE & BSE , it is India’s leading tele communication company with
over 2.5 crore customers.Reliance had the aim to make all India local
means,we can call in any part of at the rate of local call and Reliance
Communication was the first company to do so.

Reliance communication has the aim to make call rates cheaper than a
postcard.Reliance communication wants to go further beyond the expectation of
the normal men and want to deploy complete telecom solution for the entire
sepectrum of society.

It is recognized fact that each point of increaes in tele-destiny results in a 3

percent growth in the country’s GDP.

14
ORGANISATION STRUCTURE

The organization structure defines various levels of organization i.e. Business,

Work Centers, Functions, Circles, Cities, etc. The Reliance Infocomm
Organization structure includes:

Business Unit: Enterprises, consumer, Wholesale, & Web stores

Work Centers: Network (O&M - Wireless, O&M - NLD/ILD, O&M - IDC, O&M -
OSP, EWC- Long Distance, EWC-Wireless, EWC-Wire line, OSS, ITC, NOC),
Call Center, BSS, (CRM, RA) m, Billing and Collection, Applications and
Solutions Group.

Functions: HR, Commercial, Purchase/Logistics, IT Infrastructure, and

Corporate Staff Function.

Communications operations are spread over 673 cities in the following Circles:

1. Andhra Pradesh 2. Delhi and Rajasthan

3. Gujarat 4. Karnataka

5. Kerala 6. M.P. & Orissa

7. Rest of Maharashtra 8. Mumbai

9. Punjab, Haryana & H.P. 10. Tamilnadu

11. U.P. (East & West) 12. West Bengal & Bihar

15
ORGANISATIONAL SET-UP

16
 CHAIRMAN

PRESIDENT PRESIDENT PRESIDENT

(personal business) (enterprise business) (home
business)

SENIOUR V.P

V.P

GM

DGM

AGM

SENIOUR MANAGER

MANAGER

DUPTY MANAGER

ASST. MANAGER

MANAGEMENT TRAINING

17
DAKC Head Office DAKC Head Office

Delhi, Rajasthan &

Hub
Haryana

Circle Rajasthan

Jaipur, Jodhpur,
Cluster Udaipur, Bikaner,

Alwar, Kota & Ajmer

18
 WORK LEVELS

The organization structure also defines the organizational functions,

considering the nature and scope of functions to be performed. The following
four work levels broadly indicate the nature of accountability and responsibility
assigned to role holders at the work level.

WORK LEVELS
1. L1-Leadership 2. L2- Managerial

3. L3-Executive 4. L4-Support

L1-Leadership Role - Accountable for participating and leading strategy

creation/direction. Overall business/team performance responsibility for
designated area.

L2-Managerial Role- Accountable for execution of business plan and

achievement of team/individuals targets .Be responsible for maintenance of key
company assets (customers, physical assets, people)

L3- Executive Role- Responsible for achieving individual/ team target.

L-4-Support Role- Responsible for performing assigned activities and support

other work levels.

19
 Reliance Communications Businesses

Enterprise Personal Network

Shared

Services

Web World DTH

20
The business of RELIANCE COMMUNICATIONS is divided into five
sub divisions-

1) PERSONAL BUSINESS- This business of RELIANCE is counted

amongst the major business and hence contributes towards the 70-80%
of the RELIANCE BUSINESS. This business consists of the Prepaid and
the postpaid connections by 1 to1 dealing. If the no of connections are
more than 5 then it is said to be commercial. This business comprises of
Personal distribution, Win, retail, business commercial, direct sales,
marketing, CSD. The HR head of the personal business is Mr. SANJEEV
SHARAN.

2) ENTERPRISE BUSINESS- This business of RELIANCE is headed by

Mr. Prem Bandula. This business contributes arond10-15% of the
business. The enterprise business comprises of the CWG, BB, PCO.

3) DTH- This stands for DIRECT TO HOME services. In comparison with

their competitors RELIANCE has also started their services of BIG TV
which is still to be launched.

4) SHARED SERVICES- This is that part of the business which does not
contributes directly to the business but helps in the effective dealings and
the conduct of the business. It includes IT, COMMERCIAL.

21
PRODUCT & SERVICES

Reliance Mobile- With over 19 million subscribers, Reliance Mobile is India’s

largest service brand. It achieved this destination on 1 may2003, within merely
seven months of its launch. Reliance Mobile has ushered in mobile revolution
by offering advanced multimedia handsets to the common men at very low
rates. This innovative low pricing increased mobile users in India & it directly
reflected the tale density in India.

Reliance Mobile World- The Reliance Mobile World is suite of Reliance Mobile
which is a java based application. Its uniqueness lies in fact that it enables
complex internet application to be introduced in mobile phones effectively and
quickly. Reliance Mobile World receives over 15 lakh pages view every month
from Reliance mobile user.

Reliance Mobile World offers a wide array of application that includes hourly
news ,updates ,video clips, lingual ring tones, seasonal updates ,weather
forecast ,city and TV special, exams result ,astrology ,bills payment ,stock
information, railway ,air ticket booking.

Reliance Net connect- reliance Communication offers the country’s foremost

wireless Internet connectivity through R Connect nation wide. Reliance net
connect is India’s fastest growing internet connectivity service which touched a
user base of over 3.5 lakh subscriber in less than seven months of its launch.

The highlight of the offering is that subscriber can connect to internet on the
move at the data speed of up to 144 kbps from their laptops or any computing
device connecting a Reliance Netconnect cables to their Reliance Mobile

22
Phone or by using a Reliance Netconnect cable to their Reliance Net connect
card inserted into PCMAI slot of their laptops, subscriber can login anytime
anywhere.

Wireless POS for credit card Transation-In july 2003,Reliance

Communication joined hands with HDFC Bank to deploy India’s First wireless
Point of Sale (pos) for processing credit card transactions.It marked an eventual
beinning in the Indian history of retail credit cards in India.It has enabled banks
to open wireless credit cards accepting outlets.

Wireless ATMs – The CDMA based wireless connectivity solutions of Reliance

Communications Facilitates bank to deploy ATMs expediently,over and above
its advantages of rolling outs nationwide network of secure and cost effective
wireless network of secure and cost effective wireless ATMs.

Utilizing Reliance Communcation’s integrated and durable wireless

network,tops banks in India including SBI,ICICI,and HDFC are rolling out
hundred of ATMs.

Mobile Virtual Private Network(VPN)- Reliance communication’s data VPN

offering facilitates access to a user’s desktop while he or she is on move.
Through our reliable CDMA network,the user will be able to access all the office
applications with a speed of 144 kbps anytime any where.

Reliance communication’s Mobile VPN offers a truly”networked” solution by

allowing enterprise to connect their remote office spread across the
geographies.

23
Vehicle Tracking system – Reliance Commnication have mapped the entire
country and built a high end Geographical Information system. It enables to
accurate pin point any location in the country.

This helps in tracking or monitoring of any in tracking or monitoring of any road

consignment and vehicle across the country any time any where.it helps in even
sending messages to the remote vehicle through SMS or E-mails.

E-education- The mission of reliance communication’s e-learning initatives is to

bring world class education to doorstep to every Indian home. Libraries and
laboratories around the world can be cross linked making way for seamless
exchange of information and expertise. A student sitting in India can have
access to the information of Oxford.

Village Public Telephone – Reliance communication is committed to bring

about a revolutionary change in the rural telephone. Reliance communication’s
VPT is a pioneering efforts to introduce telephone in village that dose not have
connections till date. Planning is going on,by year 2007 Reliance
communication will start giving start giving connections.

Reliance World –Reliance world (formerly reliance web world ) is a world-class

nationwide chain of retails outlets for products and services of the reliance-Anil
Dhirubhai Ambani Group.It is designed to give the customer a delightful
experience of the digital world of information,communication,entertainment and
utility service.

24
ACHIEVEMENTS , 2007

January 01 – Reliance infocomm launches”One Nation One Traiff “to enable

Reliance India Mobile prepaid users to enable Reliance India Mobile prepaid
user to call anywhere in India Mobile prepaid user to call anywherein India at
Re one per minute.

January 23- TIMES NOW launched on Reliance Mobile phones,making it the

world’s first TV channel to be launched on a mobile phone.

March 06- Reliance Communication Ventures Ltd.(RCVL),India’s leading

integrated telecommunications company,a member of the Reliance-Anil
Dhirubhai Ambani group,lists on the Bombay Stock Exchange and National
Stock Exchange.

March 21-Reliance Infocomm introduce R World in hindi to become the world’s

in first operator to offer mobile data services in more than one language on the
same handset.This will make it possible for millions of Indians to access the
popular R World with hundreds of every-days-use applications in the national
language.

March 23- Reliance Anil Dhirubhai Ambani Group Signs up Indian crickets whiz
kid and heatthrob of millions Mahendra singh Dhoni as the brand ambassador
for Reliance Communications Ventures Ltd.

25
March 29-Reliance Infocomm becomes india’s telecom operator to launch
seamless inter-standard.1Numderd international roaming service –
1World.1Numder,with single number on international CDMA and GSM networks

June 22- Reliance Communication ties up with Disney to to offer on Reliance

Mobile World India’s first 3D animation mobile.

July 03- Reliance Communication launches ‘Hello capital Plan’ to enable its
subscribes in 19 state capitals to call each other at the local call rate of 40 paise
per minute.

26
HR ACTIVITIES AT RELIANCE COMMUNICATIONS
RAJASTHAN

HR ACTIVITIES

TALENT

Acquisition Adminstration

TALENT

DEVELOPMENT

Management

27
HR MISSION

Facilitate, coach and enable best in class and leading edge HR practices
across the extended enterprise of Reliance Communications and thereby
nurture a customer center, positive energy organization that will maximize
stakeholder satisfaction.

28
REVIEW OF LITERATURE

29
PROJECT OVERVIEW

Hr activities at reliance communications in Rajasthan includes

following:

 Talent acquisition

 Talent management

 Talent development

 Administration.

The hr department of reliance communications is divided into

four categories:
1) TALENT ACQUISITION- It comprises of RECRUITMENT AND
SELECTION of the candidates. Generally this process of finding the
suitable candidates is done through the various consultancies such as
MARGDARSHAK, ADECO, etc. The selection procedure in RELIANCE
is started through the process of short listing the candidates who are
eligible and are fit in the culture. The first interview is with the respective
HOD and then with the HR HEAD ( Mr. Sanjeev Sharan)and finally with
the CIRCLE HEAD( Mr. Gurpreet singh).

30
2) TALENT DEVELOPMENT- It comprises of the TRAINING AND THE
DEVELOPMENT OF THE EMPLOYEES. This work of training and
development also includes the PMS which is conducted QUARTELY and
the PLI (PERFORMANCE LINKED INCENTIVES) are given to the
employees respectively. Various training needs are identified by the
HOD and the same is discussed with the HR and the training is
scheduled accordingly.

3) TALENT MANAGEMENT- It comprises of MANAGING THE

EMPLOYEES OF THE ORGANISATION with respect to their
RETENTION AND SATISFACTION. The team identifies the needs of the
employees and the same is fulfilled accordingly. The full employee
database is managed through the well known technique SAP.

4) ADMIN - This department of the HR department includes the rest

activities of RELIANCE related to employees. It includes the
management of the stationery, the submissions of the checks etc.

31
Activities in Talent Development: -

 Training and Development Activities.

 Induction and Orientation to new employees.

 Performance Management System based on Balanced score card

concept.

 Confirmation Appraisal Cycle.

 New HR initiatives.

 Developing and designing new formats and processes.

32
 INTRODUCTION OF PERFORMANCE APPRAISAL

People differ in their abilities and their aptitudes. There is always some
difference between the quality and quantity of the same work on the same job
being done by two different people. Therefore, performance management and
performance appraisal is necessary to understand each employee’s abilities,
competencies and relative merit and worth for the organization. Performance
appraisal rates the employees in terms of their performance.

Performance appraisals are widely used in the society. The history of

performance appraisal can be dated back to the 20th century and then to the
second world war when the merit rating was used for the first time. An employer
evaluating their employees is a very old concept. Performance appraisals are
an indispensable part of performance measurement.

Performance appraisal, also known as employee appraisal, is a method by

which the job performance of an employee is evaluated (generally in terms of
quality, quantity, cost and time). Performance appraisal is a part of career
development.

Performance appraisals are regular reviews of employee performance within

organizations.Performance Appraisal is the systematic evaluation of
individual with respects to his/ her performance on the job and his potential
for development. The performance being measured against such factors as job
knowledge, quality and quantity of output, initiative, leadership abilities,
supervision, dependability co-operation, judgment, versatility, health and the

33
like. Assessment should not be confined to past performance alone. Potential of
the employee for future performance must also be assessed.

A Performance Appraisal “is a formal structured system of measuring and

evaluating an employee’s job, related behavior and outcomes to discover
how and why the employee is presently performing on the job and how
the employee can perform more effectively in the future so that the
employee, organization and society all benefits.”

Generally, the aims of a performance appraisal are to:

 Give feedback on performance to employees.

 Identify employee training needs.

 Document criteria used to allocate organizational rewards.

 Form a basis for personnel decisions: salary increases, promotions,

disciplinary actions, etc.

 Provide the opportunity for organizational diagnosis and development.

 Facilitate communication between employee and administraton

 Validate selection techniques and human resource policies to meet

federal Equal Employment Opportunity requirements.

A common approach to assessing performance is to use a numerical or scalar

rating system whereby managers are asked to score an individual against a
number of objectives/attributes. In some companies, employees receive
assessments from their manager, peers, subordinates and customers while
also performing a self assessment. This is known as 360° appraisal. forms
good communication patterns.

34
The most popular methods that are being used as performance
appraisal process are:

 Management by objectives
 360 degree appraisal

 Behavioral Observation Scale

 Behaviorally Anchored Rating Scale

Performance appraisal is necessary to measure the performance of the

employees and the organization to check the progress towards the desired
goals and aims.

The latest mantra being followed by organizations across the world being – “get
paid according to what you contribute” – the focus of the organizations is
turning to performance management and specifically to individual performance.
Performance appraisal helps to rate the performance of the employees and
evaluate their contribution towards the organizational goals. If the process of
performance appraisals is formal and properly structured, it helps the
employees to clearly understand their roles and responsibilities and give
direction to the individual’s performance. It helps to align the individual
performances with the organizational goals and also review their performance.

35
Performance Appraisal Process

Best practices in Performance Management dictate a proactive approach to the

Performance Appraisal or Review Process that follows the multi-phase design:

 Planning Phase: Set mutually agreed upon goals and guidelines for
employee evaluation. Determine the key objectives for measuring
success in the position and set developmental goals to encourage
greater productivity and results.

 Performance Phase: The longest phase that allows the employee to

meet goal and objectives, develop new skills and track accomplishments
or set backs in the system throughout the process. Managers are
reviewing performance and making notes as well.

 Assessment Phase: Employees are given an opportunity near the end

of the performance cycle to provide feedback on the preset goals,
competencies and objectives to deliver to their manager. This is when the
manager will document feedback on the employee performance as well.
The system allows senior managers to review all submitted
documentation and sign off before the actual review is complete.

 Review Phase: Manager and employee sit down together to discuss the
year in review. Reviews can be presented online or printed and e-
signature that the review took place can be captured in the system to
protect the organization if legal review should occur.

36
IMPORTANCE AND PURPOSES

Performance appraisal is considered to be most significant and indispensable

tool for an organization for the information it provides is highly useful in making
decision:

1. Regarding various personal aspects such as promotions, salary

increase, transfers, demotion and termination.
2. They are means of telling a subordinate hoe he is doing, suggesting
needed changes in his behavior, attitudes, skills or job knowledge.
3. The superior uses them as a base for coaching and counseling the
individual

Performance Appraisal is being practiced in 90% of the organisations

worldwide. Self-appraisal and potential appraisal also form a part of the
performance appraisal processes. Typically, Performance Appraisal is aimed at:

 To review the performance of the employees over a given period of time.

 To judge the gap between the actual and the desired performance.

 To help the management in exercising organizational control.

 To diagnose the training and development needs of the future

 Provide information to assist in the HR decisions like promotions,

transfers etc.

 Provide clarity of the expectations and responsibilities of the functions to

be performed by the employees.

37
  To judge the effectiveness of the other human resource functions of the
organization such as recruitment, selection, training and development.

 To reduce the grievances of the employees.

 Helps to strengthen the relationship and communication between

superior – subordinates and management – employees.

According to a recent survey, the percentage of organisations (out of the total

organisations surveyed i.e. 50) using performance appraisal for the various
purposes are as shown in the diagram below:

PERFORMANCE PLANNING PROCESS

38
39
 APPRAISAL FORMAT

In order to achieve these objectives the appraisal format should have the
following components: -
 Key Result Area (KRAs):
1. KRAs are measures that are linked to business strategy and are cascaded
from the business KRAs. KRAs are divided into six (6) broad measurement
dimensions which are Financial, Customer, Innovation/Internal Process,
Projects, Employee Learning and Development and Societal. Every
employee need not have KRAs in each of these measurement dimensions
2. Each KRA would have a specific target. The target quantifies or verifies the
extent of achievement in a given time frame

 Individual Contribution Areas (ICAs):

1. The ICAs capture the key impact areas of the employee’s efforts which are
not captured through KRAs. They have been divided into three broad
categories:- Learning & Growth, Special Projects and Other Job
Responsibilities.

2. These are quantitative and/or qualitative measures which are defined

through conversation between employee and the manager.

3. At the end of the year, evaluation on the ICAs is captured through the
multirater feedback system.

 Core Responsibilities(CRs):

1. Core responsibilities are significant ongoing task or outcomes based on day

to day work and are part of the job responsibilities.

40
2. No pre determined targets are set for the core responsibilities in the
performance planning phase.

Roles and Responsibilities in the Performance

Appraisal

Employee/Appraisee :-

 Identification of KRAs, CRs and ICAs with their Manager’s at the

beginning of the Performance Cycle.
 Contribute to the setting of targets against each of the KRAs with
their Manager.
 Contribute to setting the weightages for the KRAs, CRs and ICAs
have to be finalized in co-ordination with the Manager.
 Complete the Performance plan and submit to the manager for
verification.
 Complete the Quarterly and Half-Yearly Self review and collect
feedback and guidance from the manager on the performance.
 Complete the Year end Self Appraisal and submit to the manager for
year end appraisal.

Manager/Appraiser :-

 Identification of KRAs and ICAs with the employees at the beginning

of the performance cycle
 Contribute to the setting of targets and expected levels of
performance with the employees. Contribute to setting the
weightages for the KRAs and ICAs have to be finalized in co-
ordination with the employee
 Verify and finalize the performance plan for the employee for the year
 Provide half yearly performance guidance and feedback, based on
the self appraisal and actual versus target performance of the
employee

41
  Review the year end self review of the employee and provide the final
ratings for the KRAs and ICAs
 Submit the final ratings to the reviewer for finalization of the rating
 Identify potential extraordinary performers

Reviewer:-

 Validate the performance plan for the employee and sign off on the
document.
 Review and finalize any deviation from the suggested weightages for
KRAs, CRs and ICAs in the employee manual
 Validate the final score submitted by the manager
Ratify the manager’s identification of extra-ordinary performers.

HR:

It functions as a facilitator in the process would ensure adherence to guidelines,

support, dispute resolution and modify design aspects to align with organization
requirements

42
 APPRAISAL SYSTEM
AT RELIANCE COMMUNICATIONS

43
APPRAISAL SYSTEM AT RELIANCE
COMMUNICATIONS

 A system for managing organizational Performance.

 A system for Managing Employee Performance.

 A system for Integrating the Management of Organizational and Employee

Performance.

 A system for Integrating Rewards to performance and plan development

44
RELIANCE PERFORMANCE MANAGEMENT SYSTEM

Purpose
To institutionalize an integrated system to support the organization growth and
create a performance driven culture, encompassing performance planning,
monitoring, support and evaluation with a focus on employee learning and
development.

The Performance Management System acts as major integrating factor with the
other HR systems of the organization as follows:

Development Strategies

-Training

-Coaching

-Mentoring

-Job Rotation/ Enrichment/ enlargement

45
PMS FRAMEWORK

46
PROCESS AT A GLANCE

47
Phase 1:- Performance Planning & Target Setting

 March- Performance measures and targets set jointly by employee

and manager
 These are cascaded from the organizational goals to ensure
alignment

Phase 2:- Interim Review of performance

 July and January- Quarterly reviews. Interactive feedback session

only
 October- Mid year review. Provision for revision of the performance
plan if required, due to business exigencies( Course correction
mechanism)

Phase 3:- Year End Performance Evaluation

 April- Assessment of achievement levels against targets by manager

followed by the process of normalization
 Final rating communicated to the employee. In case of any
disagreements, case submitted to the Reviewer

48
 PHASE-1

What is the Balanced Scorecard????

A new approach to strategic management was developed in the early 1990's by

Drs. Robert Kaplan (Harvard Business School) and David Norton. They named
this system the 'balanced scorecard'. Recognizing some of the weaknesses
and vagueness of previous management approaches, the balanced scorecard
approach provides a clear prescription as to what companies should measure in
order to 'balance' the financial perspective.

The balanced scorecard is a management system (not only a measurement

system) that enables organizations to clarify their vision and strategy and
translate them into action. It provides feedback around both the internal
business processes and external outcomes in order to continuously improve
strategic performance and results. When fully deployed, the balanced scorecard
transforms strategic planning from an academic exercise into the nerve center
of an enterprise.

Kaplan and Norton describe the innovation of the balanced scorecard as

follows:

"The balanced scorecard retains traditional financial measures. But financial

measures tell the story of past events, an adequate story for industrial age
companies for which investments in long-term capabilities and customer
relationships were not critical for success. These financial measures are
inadequate, however, for guiding and evaluating the journey that information
age companies must make to create future value through investment in
customers, suppliers, employees, technology and innovations.”

49
The balanced scorecard suggests that we view the organization from four
perspectives, and to develop metrics, collect data and analyze it relative to each
of these perspectives:

 The Learning and Growth Perspective

 The Business Process Perspective

 The Customer Perspective

 The Financial Perspective

50
BALANCED SCORECARD FLOWCHART

51
OVERALL PROCESS OF BALANCED SCORECARD

The process consists of seven steps over three phases :

Phase 1:- The Strategic Foundation

Step 1: Communicate and align the organization around a clear and concise
strategy. This is the fundamental starting point behind everything else. Your
strategy is what “feeds” the Balanced Scorecard.

Step 2: Determine the major strategic areas or scope for getting the
organization focused on those things the organization can actually do.

Step 3: Build a strategic grid for each major strategic areas of the business.

Phase 2:- Three Critical Components

Step 4: For each strategic objective on each strategic grid, there needs to be at
least one measurement. Measurement provides the feedback on whether or not
we are meeting our strategic objectives.

Step 5: Set targets for each measurement: For each measurement in your
Scorecard, establish a corresponding target.

Step 6: Launch programs: Things will not happen unless the organization
undertakes formal programs, initiates or projects .

52
Phase 3:- Deployment

Step 7: Once the balanced Scorecard has been built, you need to push the
entire process into other pats of the organization until you construct a single
coherent management system.

CASCADE GOALS

 Cascade refers to the process of aligning organizational

goals to individual goals in a series of steps.

 Cascading of goals ensures that all efforts within the

organization are focused towards a common organization

wide goal.

53
Cascade of goals from organization to business & functional
level

54
CASCADE OF GOALS TO INDIVIDUALS SCORECARDS:

The process of drawing out individuals KRAs happens in the following manner:-

Alignment of Goals and Targets:-

Vertically – Do the goals of the individual align with the goals of

the department division and organization?

55
Horizontally – Do the targets for the sum of the individuals add
together to achieve the target of the department?

Developing Action Plan

Once the goals have been determined and agreed upon by the manager,
initiatives to support the goal can be identified.

56
 PHASE-2

INTERIM REVIEW

Benefits of Interim Review:

 Allows provision of performance plan, if required

 Highlights areas of inputs, guidance, support required by appraisee

 Allows appraiser to give feedback & create coaching plan, if required

 Allows documenting feedback for final year and discussion & evaluation

Interim Review Process:

 Quarterly Reviews- July & January

 Interactive feedback session between manager and employees

 Does not result in a performance score

 Feedback is documented during each review session and

 discussed at the year end evaluation

Mid Year Review- October

57
 Provision for mid courses revision to Performance

 plan in case of extraneous circumstances

 Any modification to be ratified by manager and

 signed off by reviewer

INTERIM REVIEW PROCESS

58
 PHASE-3

YEAR END PERFORMANCE EVALUATION

Benefits of Year end Performance Evaluation

1. Reinforce Performance Excellence within the organization

2. Reward and recognize high performance

3. Reinforce organization’s priorities and goals

Year end Performance Evaluation Process

1. Take place in April of each Year

2. Assessment of achievements of KRAs, CRs and ICAs by self & manager

3. Interim review feedback is also discussed

4. Roles with multiple reporting

59
 - Multi-rater feedback obtained

- Final ratings by administrative manager.

YEAR END PERFORMANCE APPRAISAL PROCESS

60
Year end Performance Evaluation Process Continued

1. Final score is calculated from individual ratings on KRAs, CRs and ICAs

2. Final score is normalized

3. Final rating is arrived at

- Final rating is different from Final score

PERFORMANCE RATINGS SYSTEM

61
NORMALIZATION

62
Benefits of Normalization

1. Ensures equity in ratings between departments and SBUs

2. Ensures same standards of performance evaluation across organization

3. Ensures fairness and recognizes individual, team, business performance to

organizational goals

What is Normalization???

1. Alignment of individual performance to relevant business unit performance

2. Alignment of business unit performance to circle or business performance

3. Results in a final performance rating

Normalization Process:

1. Normalization results are computed on the SAP system

2. Review is held by Normalization committee

3. Review takes place at both DAKC & Circle levels.

63
 Chapter-3

RESEARCH METHODOLOGY

CRITICAL INCIDENT SCORE

64
The basis of this method is the principle that there are certain significant acts in
each employee’s behavior and performance, which makes all the difference
between success and failure on the job.
The supervisor keeps a written record of the events (either good or bad).
Feedback is provided about the incidents during the performance review
session. Various behaviors are recorded under such categories as the type of
job, requirement for employees, judgment, learning ability; several research
studies are undertaken and accomplished year after year but in most cases
very little attention is paid to this important dimension relating to research.

Research design is a model of master plan for gathering formal information. It

calls for certain specification of methods and procedures for obtaining the
required information.

Marketing Research Project is defined as either EXPLORATORY RESEARCH

or DESCRIPTIVE RESEARCH depending upon the objectives of the study.

The object of the Exploratory is to seek new ideas and to discover new
relationship between different set of factors in a way that will permit statement
of specific hypothesis. To find out this hypothesis, study of secondary sources
of information, survey of knowledgeable person or case studies are conducted.
Descriptive research describes situation and provides information, which helps
in decision-making. Such research requires a formal design, which helps the
researcher to identify cause and affect relationship.

This can be done by case statistical study and experimentation. The present
research is a descriptive research, as it wants to find out effectiveness of
present performance appraisal system. The information has been gathered
from survey of sample people selection from the company.

COLLECTION OF DATA

65
Data collection is an integral part of the marketing research. There are several
ways of collecting the appropriate data, which differ considerably in context of
money costs, time and other resources at the disposal of the researcher. The
researcher should keep in mind two types of data viz. Primary and Secondary.

The primary data are those, which are collected afresh and for the first time,
and thus happen to be original in character.

Primary Data is collected through:

 Questionnaire- in which division of questions are as follows:

(a) No. of close ended questions -9

(b) No. of open ended questions-3

 Observation

 Unsturctured interviews

The secondary data are those, which have already been collected by some
one else like various journals and publications of the company and that are
used for quick compilation of the report.

Both the methods were used for the compilation of the project.

TITLE OF THE STUDY

66
For the study of performance management system in Reliance a questionnaire
was prepared.The questionnaire consisted of 12 questions with the combination
of both close ended and open ended questions. The questionnaire was
designed to know the effectiveness of PMS. It helped us to know the views of
the employees regarding PMS in Reliance.

OBJECTIVES OF THE STUDY

 Understand the operations of HR function

 Study of Talent Development

» Performance Management System
» Employee Engagement

Limitation of the study

67
The study has gone through the above-mentioned limitations that took a form of
obstacle in the study:-

* The time & support extended by the executives of Reliance Communication

were limited done to their busy schedule.

* I was not able to interact within the all the employees premises

* The sample size was small and may not be representing the population’s
characteristic.

* There was no earlier work or reference on this area relating to reliance

communication.

SAMPLING
68
 Method: Simple Random Sampling

 Area: Circle Office in Jaipur and also other offices in

jaipur of Reliance.

 Unit: Employees of Reliance communications in

circle office.

 Sample size: 100 employees

 Research tool: Questionnaire.

69
 RESEARCH TECHNIQUES

 By observation

This method implies the collection of information way of investigator's

own observation, without interviewing respondent. The information obtained
related to what is currently happening or future intentions or attitudes of
respondents. This method is no doubt an expensive method and the
information provided is very limited. Method is not suitable in inquiries where
large samples are concerned.

 Through personal interview

The investigator follows a rigid procedure and seeks answers to a set of

pre-conceived questions through personal interviews.

 Through telephone interview

This method of collecting information involves contacting the

respondents on telephone itself.

 By mailing of questionnaires
The researcher and the respondent do come in contact with each other
Questionnaires are mailed to the respondents with a return. It is most widely
used method in various economic and business surveys.

70
 Through schedules
Under this method the enumerators are appointed and given training,
they are provided with schedules containing relevant questionnaires. These
enumerators go to respondent with these schedules. Data are collected by
Filling up the schedules by enumerators on the basis of replies given by
respondents.

71
FACTS AND FINDINGS

72
Findings are as follows

1) Rating of understanding of PMS:

what is the general understanding of PMS

17%
25%

4% For promotion and incentive

For careeer growth
For formality
Check deviation

54%

Only 17% were aware that it is to basically check the deviation of actual from
the standard. Mostly the employees were of the opinion that it is for the career
growth as well promotions and incentives. As every appraisal is followed by
some kind incentive thus maximum employees relate it to only incentives and
thus growth is increased.

73
2) Rating of formal discussion of performance with line
manager

How often does your team leader or line manager formally

discuss your performance with you?

5%
15%

Quarterly
32%
Half yearly
Only at time of appraisal
Never

48%

The graph clearly indicates that 48% employees were of the opinion that their
team leaders discuss their performance at least half yearly. This shows a
positive sign on the relationship of the two. Discussing the performance would
help the employee or trainee improve on his /her weak areas and thus increase
their working efficiencies.

74
3) Rating of understanding of KRAs

Do you posses clear understanding of KRAs?

5%
9% 22%

Strongly agree
Agree
Disagree
Strongly disagree

64%

When asked from the employees about the understanding of the KRAs on
which the entire performance appraisal of the organization is judged,64% of the
employees were aware of it.This clearly indicates that the organization puts an
extra effort on the performance appraisal of each and every employee. The
KRAs are well defined to the employees and also the guidelines are already
explained to the appraise as well as appraiser by the HR.

75
4) Rating of KRAs being realistic

The KRAs set for you are realistic?

14%
27%
Strongly agree
Agree
23%
Diagree
Strongly disagree

36%

76
5) Rating of KRAs being quantified

Are the KRAS Quantified for each level of employees?

14%
27%
Strongly agree
Agree
23%
Diagree
Strongly disagree

36%

This shows that 27% of the respondents strongly agreed to the

statement. They thought that their key responsibility areas are
properly and timely quantified. Another 36% people thought the
same.23% workforce under study thought that there might be
some amendment in the quantification of the KRAs.The 14%
were the same who did not find their KRAs realistic. More or less
I received a positive response, even though the organization
must find ways to convert the opinion of rest employees.

77
 6 (a) Rating of Training opportunity as benefit of PMS

Training opportunity as benefit of PMS

14%

36% Strongly agree

agree
23%
disagree
Strongly disagree

27%

On asking from the employees which of the following you think is the best
benefit of the PMS,only 14% found training as the benefit of PMS and 23% also
somewhat greed to it,but the major number of employees did not find training as
the benefit of PMS.This clearly reflects that there are comparatively less training
opportunities for the employees.

78
6(b) Rating of promotion as benefit of PMS

Promotion as benefit of PMS

13%

38% Strongly agree

22% Agree
Disagree
Strongly disagree

27%

On asking for promotion as the benefit of PMS 38% strongly agreed to it and
27% also agreed to it but with a different opinion. Thus, major number of
employees believes that if they perform well then there are better chances of
promotion as well as growth for them .

79
6(c) Rating of incentives as benefit of PMS

Incentive as benefit of PMS

15%

42% Strongly agree

17% Agree
Disagree
Strongly disagree

26%

Similarly on asking for incentives as the benefit of PMS major number of

employees agreed to it and believed that PMS is directly linked to their
performance and the better they perform better is the incentive made for them.
Thus they knew it that it is very important to perform their job well and complete
their KRAs in time as well efficiently and effectively.

Thus for the above question we can very well conclude that employees are
more concerned about their incentives and are very well aware of the fact that it
is only their best performance that will fetch them growth in terms of both
monetary as well career.

80
7(a) Rating of influence of PMS on Productivity

Do PMS influence productivity at individual or department level

18% 12%

16% Strongly agree

Agree
Disagree
Strongly disagree

54%

7(b) Rating of influence of PMS on improved efficiency and

effectiveness

Do PMS influence increased efficiency and effectiveness at

individual or department level?

17%
23%

Strongly agree
agree
22% Disagree
Strongly disagree

38%

81
7(C) Rating of influence of PMS on career development

Do PMS influence career development at individual or deapartment

level?

12%
19%

Strongly agree
agree
32% Disagree
Strongly disagree
37%

82
7(d) Rating of influence of PMS on succession planning

Do PMS influence succession planning at individual or department

level?

12% 9%

Strongly agree
27% Agree
Disagree
Strongly disagree

52%

On asking from the employees about the influence of PMS on certain factors,
mostly the employees were of the opinion that PMS influences their efficiency
as well as effectiveness the most. They believed that through appraisal they
come to know their strong area as well as their weak area after appraisal they
have the clear picture of where they are performing well and also where they
need to improve and devote more efforts to make their performance up to the
mark. This section got the highest percentage with 23%strongly agree and 38%
agree. Similarly second highest score was of career development with 12%
strongly agree and 32% agree. Thus we can conclude that employees are well
aware that it is the PMS only that provides ample opportunity to them to give
their best performance and prepare a room for rewards.

83
8) Rating of satisfaction on performance linked incentives

Are you satisfied with the performance linked incentive in your

organization?

8%
18%
12%
Strongly Agree
Agree
Disagree
Strongly disagree

62%

The pie chart clearly depicts that maximum no. of employees are satisfied with
the performance linked incentive that they receive after their appraisal.62%
employees were of the opinion that the PLI they receive is justified by their
superiors.

84
9) Rating of fairness of performance appraisal

Do you think performance appraisal is a fair reflection of your

performance?

6%
13% 23%

Strongly agree
Agree
Disagree
Strongly disagree

58%

“ This is the most trickey of all the questions in the

questionnaire”,was quoted as saying by one of the officials. Most of
the respondents agreed to the fact that the current PMS is free
from any kind of bias. This statement finds support from the fact
that 58% of the employees agreed to the fact that the PMS is a
very stringent process and takes into account the actual
performance of the employee and identifies KRA and manages the
performance planning in an unbiased manner. But there are 13% of
the people who believe that the current system of managing
performance has loopholes and is biased towards certain
employees

85
 Chapter-5

SWOT ANALYSIS

86
SWOT analysis is a basic, straightforward model that provides direction and
serves as a basis for the development of marketing plans. It accomplishes this
by assessing an organizations strengths (what an organization can do) and
weaknesses (what an organization cannot do) in addition to opportunities
(potential favorable conditions for an organization) and threats (potential
unfavorable conditions for an organization). SWOT analysis is an important step
in planning and its value is often underestimated despite the simplicity in
creation. The role of SWOT analysis is to take the information from the
environmental analysis and separate it into internal issues (strengths and
weaknesses) and external issues (opportunities and threats). Once this is
completed, SWOT analysis determines if the information indicates something
that will assist the firm in accomplishing its objectives (a strength or
opportunity),

SWOT analysis is a general technique which can be applied across diverse

functions and activities, but it is particularly appropriate to the early stages of
planning for a TIPD visit. Performing SWOT analysis involves generating and
recording the strengths, weaknesses, opportunities, and threats relating to a
given task. It is customary for the analysis to take account of internal resources
and capabilities (strengths and weaknesses) and factors external to the
organization (opportunities and threats).

A framework for identifying and analyzing strengths, weaknesses, opportunities

and threats.This checklist is for those carrying out, or participating in, SWOT
analysis. It is a simple, popular technique which can be used in preparing or
amending plans, in problem solving and decision making.

Illustrative diagram of SWOT analysis If SWOT analysis does not start with
defining a desired end state or objective, it runs the risk of being useless. A
SWOT analysis may be incorporated into the strategic planning model. An
example of a strategic planning technique that incorporates an objective-driven
SWOT analysis .

87
Strengths: attributes of the organization those are helpful to achieving the
objective.

Weaknesses: attributes of the organization those are harmful to achieving

the objective.

Opportunities: external conditions those are helpful to achieving the

objective.

Threats: external conditions that is harmful to achieving the objective .

Strength Weakness

 Low Entry Cost  Branding Image

 Commission Structure  Distribution problem
 Fast Activation  Limited product
Process portfolio- Only Mobile
 Network  Lack of Competitive
 Connectivity Strength
 Data GPRS  Limited Budget

88
Opportunity Threat

 Preference of GSM  Political destabilization.

over CDMA  New Entrants
 New Specialist  IT Development
Application  Market Demand
 Rural Telephony  Seasonality, Weather
 New Market, Vertical, Effects
Horizontal
 Competitors`
Vulnerabilities

89
 Chapter-6

CONCLUSION

Upon analyzing each dimension of the questions under study, following are the
conclusions drawn:

 Questions 1-2 reflect about the understanding of PMS among employees

which shows that most of them relate it with their career growth. Similarly
for the 2nd question it is concluded that mostly the performance is
discussed formally with line managers only half yearly.

90
 Questions 3-5 are basically on KRAs which is the major cause of
appraisals. It reflects the positive responses of employees as they are
well aware of their KRAs and also find them not only realistic and
achievable but quantified too. Thus we can conclude that the KRAs set
are realistic and achievable.
 It is also observed that the employees relate PMS basically with the
incentives and then promotions as well as trainings. Thus it is important
that after the appraisal low performers should also be asked for the kind
of training they require and then provide them with it, as training plays an
essential role in improving performance.
 Mostly employees also understand that appraisal basically results in
improved efficiency as they are then aware of their strong and weak
areas which also results in their career development.
 It is found that the satisfaction level of employees regarding their
incentives as well as the fairness in PMS of their organization is really
high and thus, very positive for the organization as their employees are
well content with

Chapter-7

91
Recommendation &suggestions

92
 SUGGESTIONS

1 .A system of psychological appraisal can be introduced where

psychologists are used to specifically assess an individual's future potential.
The appraisal normally consists of in depth interviews, psychological tests,
discussions with supervisors and a review of other evaluations. The
psychologist then writes and evaluation of the employee's intellectual,
emotional, motivational and other work related characteristics that suggest
individual potential, This will make the potential appraisal more specific and a
reliable date source for making employee's promotion decisions and future
development.

2. The counseling sessions are conducted and the reporting officer obtains
the signature of the rate after the session but a post appraisal interview report,
handwritten may be introduced. The report may consist of-

(a) Main points conveyed by the superior.

(b) Reactions of the employees appraised.

(c) Summary of the agreed programme.

(d) Finally the date of post appraisal interview and signatures of both the
employee and the reporting officer

3. Team appraisal. Along with the individual appraisal there can be team
appraisal also. In this focus should be on the achievement of the team as a
whole. The team should be appraised on the basis of the contribution to the
organization goal. The ratings should be given team wise and then it should be
compared with other teams. The team which gets the highest rating can be
declared as ‘The Best Team of the Year’. This will not only improve the team
efficiency but also will motivate other teams to improve and achieve. The team
which turns out to be the best should not only be given monetary benefits but
also an award for the entire team. With the consent of the team members an

93
exclusive award can also be given to the team member whom they think is the
key contributor to their achievement.

4. It has been seen that individuals who are rated as “outstanding” receive a
substantially high amount of increment and a promotion is awarded in
recognition to their excellent performance. In addition to this, a system of
awarding certificates and memento/ shields to outstanding employees on a
particular day fixed for this purpose may also be introduced.

Such a system would increase a sense of recognition and achievement in the

outstanding raters and would also help in motivating other employees. The day
may be designated as “Outstanding Achievers” day the awards may be given
away to all the outstanding raters by the president in the presence of the other
employees gathered for this purpose. In this not only the performer of the
winning team should be included but also those employees who have been
very good performers throughout year irrespective of their team’s performance.

5. Effective Counseling

“Counseling is a means and not an end in itself”, this should be well

included in one’s mind. Development does not occur just because there is
counseling could be used as an effective instrument in helping people
integrates with their organization and have a sense of involvement and
satisfaction.

There should exist a dialogic relationship in goal setting and performance

review. With such a collaborative effort, counseling effort, counseling can result
in more objective results.

More emphasis should be pondered on;

• General climate of openness and mutuality.

• Empathic attitude of management.

94
• Sense of uninhibited participation by the subordinates in the performance
review

process.

• Focus on work oriented behavior and work related problems.

6. Periodic Therapy Session

Periodic psychotherapy sessions can be conducted for assessing the

employees' emotional, intellectual motivational and other work related problems
if any. This will help removing their problems and work more efficiently
psychotherapy can be given through interviews, questionnaires, case study
method, etc. The work in itself never ceases at mere assessing task but a
proper planned action and feedback programme are rather most important of
all. This psychotherapy session will also help in including a feeling of
consideration of the company towards its employees .

95
Chapter-8

Appendix

96
QUESTIONNAIRE FOR PERFORMANCE MANAGEMENT
SYSTEM

OBJECTIVE: The rationale to outline the questionnaire is for both the

academic as well as maagement purpose and the information revealed by
you will be strictly kept confidential, so please try to be as honest and
objective as possible.

(A) Age :

Department:

Gender :

(B) QUALIFICATIONS:

……………………………………………………..

(C) EXPERIENCE :

Experience in reliance (years/ month) ……………………

(D) DO YOU THINK?

(i) What is the general understanding of PMS?

(a) Is it for promotion and incentive
( )
(b) Is it for career growth
( )
(c) Is it a formality every year
( )
(d) Is to check the deviations of actual from standards set
( )

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(ii) How often does your team leader or line manager formally
discuss your performance with you?
(a) Quarterly

(b) Half yearly

(c) Only at the time of appraisal
(d) Never

(iii) Do you possess a very clear understanding of the KRAs ?

(a) Strongly Agree
(b) Agree
(c) Disagree

(d) Strongly disagree

(iv) The KRAs/targets set for you are realistic?

(a) Strongly Agree
Agree

(b) Disagree
(c) Strongly Disagree

(v) Are the KRAs set quantified for each level of employees?
(a) Strongly Agree

(b) Agree
(c ) Disagree
(d) Strongly disagree

(vi ) What benefits could be derived from PMS?

NAME

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 Strongly Strongly
Agree Agree Disagree Disagree

(a) Training opportunity ( ) ( ) ( ) ( )

(b) Promotion ( ) ( ) ( ) ( )
(c ) Incentives ( ) ( ) ( ) ( )
(d) Others (please specify) ( ) ( ) ( ) ( )

(vii) Can PMS influence any of the following at individual or

departmental level?

NAME SA Agree Disagree SD

Productivity ( ) ( ) ( ) ( )
Improved efficiency ( ) ( ) ( ) ( )
and effectiveness

Career development ( ) ( ) ( ) ( )

Succession planning ( ) ( ) ( ) ( )

(viii) Is the current PMS connected with variable parts of

compensation, or are you satisfied with the performance
linked incentive in your organization?
(a) Strongly Agree ( )
(b) Agree ( )
(c) Disagree ( )
(d) Strongly disagree ( )

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(ix) Do you think the performance appraisal is a fair reflection of
your performance?

(a) Strongly Agree ( )

(b) Agree ( )

(c) Disagree ( )

(d) Strongly disagree ( )

(x) What improvements/ suggestions can be there for the

present appraisal system?

……………………………………………….

……………………………………………….

……………………………………………….

(xi) Do the PMS possess any loopholes?

……………………………………………….

……………………………………………….

……………………………………………….

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(xii) Please suggest any other model to increase efficiency and
effectiveness?

………………………………………………

……………………………………………….

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 Chapter-9

BIBLIOGRAPHY

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 BIBLIOGRAPHY

1) Human Resource Management, K Ashwathapa.(2006)

2) Human resource planning, Udai Pareek and T V Rao.(2007)

3) Personal Management : C.B. Memeoria

4) www.relianceada.com

5) www.businessballs.com

6) www.relianceinfo.com

7) www.google.com

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