1.

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.

Performance Appraisal is the process of assessing the performance and progress of

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

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.

Performance Appraisal is defined as the process of assessing the performance and

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

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.

BSNL has set up an excellent multi-gigabit, multi-protocol convergent IP

infrastructure that provides convergent services like voice, data & video through the same
Backbone & Broadband Access Network. At present, there are 8.09 million broadband
customers.

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.

During the 2010-11, turnover of BSNL is around Rs. 29,700 Crores

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.

 Cellular Mobile Telephone Services: BSNL is major provider of Cellular Mobile

Telephone services using GSM platform under the brand name Cellone & Excel
(BSNL Mobile). As of June 30, 2010 BSNL has 13.50% share of mobile telephony
in the country.
 WLL-CDMA Telephone Services: BSNL's WLL (Wireless in Local Loop)
service is a service giving both fixed line telephony & Mobile telephony.

 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.

BSNL have several regional offices to localize its operations in India

 Consolidation of the network and maintaining high quality of service comparable to
International standard is the key aim of the Growth Plan. Objective of the plan are:

 The telephone connection shall be provided on demand and it shall be sustained.

 The network shall be made digital. All the technologically obsolete analog
exchange will be replaced with digital exchanges.
 To provide digital transmission links up to all SDCAs.
 Digital connectivity shall be made available to all the exchange by 2007-09.
 Extensive use of Optical fiber System in the local, Junction and long-distance
network to make available sufficient bandwidth for the spread of Internet and
Information technology.
 ISDN services shall be extended to all the district headquarters, subject to demand.
 To provide Intelligent Network Service, progressively all over the country (major
cities have already been covered).
 To set up Internet Nodes progressively up to District headquarters level.
 Upgrading existing STD/ISD/PCOs to full-fledged Public Tele-Info Centers (PTIC)
for supporting Multimedia capability and Internet Access.
 1.2 Company Profile

Type State-owned enterprise

Industry Telecommunications

Founded Incorporated 2000

Headquarters New Delhi, India

Key people R. K. Upadhyay

(Chairman & MD)

Products Fixed line and telephony, Internet services, digital television, IPTV

Owner(s) Government of India

Employees 281,635

Website www.new.bsnl.co.in
1.2.1. Profile of Organization

1. HISTORY

The British sometime laid the foundation of Telecom Network in Indian in

19th century and for almost entire 20th century; the Telecom in India was operated
as a government of India wing. Earlier it was a part of erstwhile Post & Telegraph
Department (P&T). DoT was responsible for running of telecom services in entire
country until 1985 when Mahan agar Telephone Nigam Limited (MTNL) was carved
out of DoT to run the telecom service of Delhi and Mumbai. It is a well-known fact
that BSNL was carved out of Department of Telecom to provide level playing field
to private telecoms. Subsequently in 1990s, the Government for Private investment
opened the telecom sector; therefore, it became necessary to separate the
Government’s policy wing from Operating wing. The Government of India
corporatized the operations wing of DoT on October 01, 2000 and named it as Bharat
Sanchar Nigam Limited (BSNL). BSNL operates as public sector

2. MAIN SERVICE BEING PROVIDED BY BSNL

BSNL provides almost every telecom service, however following are the main
Telecom Service being provide by BSNL in India: -

 UNIVERSAL TELECOM SERVICES: Fixed wire line Service & Wireless

in Local loop (WLL) using CDMA Technology called bfone and Tarangh
respectively. BSNL is domain operator in fixed line. As on March 21, 2007
BSNL had 17% share of fixed.
 CELLULAR MOBILE TELEPHONE SERVICE: BSNL is a major provider
of Cellular Mobile Telephone service using GSM platform under brand name
Cellone. Pre-paid Cellular service of BSNL are known as Excel. As on march
31, 2007 BSNL had 17% share of mobile telephony in the country.
 INTERNET: BSNL is providing internet as dial-up connection (Sancharnet)
and ADSL-Broadband Data one. BSNL has around 50% market share in
broadband in India. BSNL has planned aggressive rollout in broadband for
current financial year.
 INTELLIGENT NETWORK (IN): BSNL is providing IN service like
televoting, toll free calling, premium calling, etc.

3. BSNL PRESENT & FUTURE

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.

Former Indian Communications Minister Thiru Dayanidhi Maran had

declared year 2007 as “Year of Broadband” in India and BSNL is gearing up to
provide 5 million Broadband connectivity by the end of 2007 . BSNL has upgraded
existing Dataone (Broadband) connections for a speed of up to 2 Mbit/s without any
extra cost. The Mbit/s broadband service is being provided by BSNL is planning to
upgrade of just US$ 5.5 per month. Further, BSNL is planning to upgrade its
broadband service to Triple play (telecommunication) in 2007.

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.

BSNL is pioneer of Rural Technology in India. BSNL has recently bagged

80% of US$ 580 m (INR 2500 crore) Rural Telephony project of Government of
India.

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.

Presently there is an intense competition in Indian telecom sector and various

Telco’s are rolling out attractive schemes and are providing good customer services.
However, BSNL being legacy operator and its conversion from a Government
Department earns a lot of criticism for its poor customer services. Although in recent
past, there have been tremendous improvement in working of BSNL but still in much
below the Industry’s Expectations. A large aging (average age 49 years (appx))
workforce (300000 strong), which is mostly semiliterate or illiterate is the main
reason for the poor customer service. Further, the top management of BSNL is still
working in BSNL on deputation basis holding Government employee status thus
having little commitment to the organization. Although in coming year, the
retirement profile of the workforce is very fast and around 25% of existing workforce
will retire by standards. Quality of the work force will also remain an issue.

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

To became the largest telecom Service Provider

6. MISSION

 To provide world class State-of-art technology telecom services to its customer

on demand at competitive prices.
 To Provide world class telecom infrastructure in its area of operation and to
contribute to the growth
1.3 Importance of Study
An effective appraisal and performance management process can have a significant
impact on an organization’s culture, staff morale and employee engagement levels – all of
which enhance employer brand and support the retention of key talent within a business.

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

 To provide information about performance ranks on which decisions regarding

salary fixation, promotions are taken.
 Help employee to Krishan Bharti Cooperative Ltd. 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 officer to the
employee.
 Contribution to the growth and development of the employee thru 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
development.
1.5 Objective of Study

 To effect promotion based on competence and performance.

 To confirm the services of probationary employees upon their completing the
probationary period satisfactorily.
 To let the employees, know where they stand as far as their performance is
concerned and to assist employees with constructive criticism and guidance for
purpose of their development.
 To assess the training and development needs of employees.
 To decide upon a pay rise where regular pay scales have not been fixed.
 Finally. Performance appraisal can be used to determine whether HR programs
such as selection, training, and transfers have been effective or not.
 Broadly, performance appraisal serves four objectives –
o Developmental uses,
o Administrative uses/decisions,
o Organizational maintenance / objectives, and
o Documentation purposes
1.6 Hypothesis
Hypothesis testing is used to infer the result of a hypothesis is performed on sample
data from a larger population. The test tells the analyst whether his primary hypothesis is
true. Statistical analysts test a hypothesis by measuring and examining a random sample of
the population being analyzed,

A Hypothesis is constructed as statements of expectations, which is used as

conceptual framework in research. A hypothesis is a proposed explanation for
phenomenon.

For conducting study on performance appraisal technique in BSNL here I considered

fallowing hypothesis here

 H0: There is a significance impact of performance appraisal practices in

organization effectiveness.
 H1: There is no relevant impact of performance appraisal practices on
organization effectiveness.
1.7 Scope 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

 This study is only limited to BSNL

 Some of the respondents were afraid to give true information in some cases.
 There may be bias on the part of employees while answering to the questions.
 Employee feedback may not be 100% reliable and accurate. Sometimes, they may
keep back information that may be determinable to the image of the organization.
2. Review of literature

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.

Niklos' define Performance as, “The outcome of behavior, Behavior is individual

activity where outcomes of behavior are the way in which the behaving individual
environment is somehow different as a result of his or her behavior. It is the systematic
evaluation of the individual with respect to his or her Performance on the job and his or her
potential for development.”

Dulewicz (1989, Performance appraisal and counselling) says, "There is a basic

human tendency to make judgments about those one is working with, as well as about
oneself." Appraisal it seems, is both inevitable and universal. In the absence of a carefully
structured system of appraisal people, tend to judge the work Performance of others,
including subordinates, naturally, informally and arbitrarily. The human inclination to
judge can create serious motivational, ethical and legal problems in the work place without
a structured appraisal system, there is little chance of ensuring that the judgment made will
be lawful, fair, defensible and accurate.

Robert D. Bretz Jr. George T. Milkovich, “The current state of Performance

Appraisal Research and Practice “Performance Appraisal research has done little to
improve its usefulness as a managerial decision-making tool. Performance Appraisal
research can be evaluated both in terms of its theoretical contribution and its ability to
inform practice. Since the rating process involves complex cognitive processes, basic
research that defines the nature of the phenomenon is clearly needed.

Janice S. Miller, Robert L. Cardy, “Self-monitoring and performance appraisal",

Two studies examined the relationship between rate self-monitoring and performance
appraisal in project teams using three appraisal sources: Self, Peer and Supervisor.Study1,
a laboratory study, found that high self-monitoring (HSM) subjects produced self- rating
significantly higher than their low self-monitoring (LSM) counterparts. Further, higher
agreement among sources occurred for LSM than for HSM subjects. HSM’s tendency.
3. Research and Analysis
3.1. Research Methodology
Work performance appraisal systems assess the employee's effectiveness, work
habits and the quality of the work produced. The research methodology used to evaluate
the accuracy and effectiveness of the appraisal instrument takes different forms and
depends on the type of career professional under the microscope for evaluation, but the
foundation for all evaluations rests on several basic research techniques. The evaluation
methodology corroborates the original employee evaluations and performance appraisals
through supporting multiple research reporting measures.

1. AIM OF THE RESEARCH

To Performance Appraisal methodology used by the BSNL Organization.

2. RESEARCH DESIGN

A research design is a type of blueprint prepared on various types of blueprints

available for the collection, measurement and analysis of data. A research design
calls for developing the most efficient plan of gathering the needed information. The
design of a research study is based on the purpose of the study.

A research design is the specification of methods and procedures for acquiring

the information needed. It is the overall pattern or framework of the project that
stipulates what information is to be collected from which source and by what
procedures.

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.

Most 360 Degree Feedback system contains several common features.

Appropriate parties – peers, supervisors, subordinates and customers, for instance –
complete survey, questionnaires on an individual. 360-degree feedback is also
known as the multi-rater feedback, whereby just the next manager does not give
ratings up in the organizational hierarchy, but also by peers and subordinates.
Appropriates customer ratings are also included, along with the element of self-
appraisal. Once gathered in, the assessment from the various quarters are compared
with one another and the results communicated to the manager concerned.

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

This study is a descriptive research design based on survey method; First

hand, data were collected from the employees through questionnaire method.
Descriptive research describes the characteristics of a particular individual, or of a
group, the researcher has come to know the need of performance appraisal required
in BSNL so survey will be made to know the level of performance appraisal level
from the employees in Bharat Sanchar Nigam Limited (GM office).

3. SAMPLING

An integral component of a research design is the sampling plan. Specifically,

it addresses three questions-

 Whom to survey (The Sample Unit)

 How many to Survey (The Sample Size) &
 How to select them (The Sampling Procedure)

Making a census study of the whole universe will be impossible on the

account of limitations of time. Hence, sampling becomes inevitable. A sample is
only a portion of the total employee strength. According to Yule, a famous
statistician, the object of sampling is to get maximum information about the parent
population with minimum effort.

Methods of Sampling

 Probability Sampling is also known as random sampling or chance sampling.

Under this sampling design, every individual in the organization has an equal
chance, or probability, of being chosen as a sample. This implies that the section
of sample items is independent of the persons making the study that is; the
sampling operation is controlled objectively so that the items will be chosen
strictly at random.
 Non Probability Sampling is also known as deliberate sampling, purposeful and
judgmental sampling. Non-Probability Sampling is that which does not provide
every individual in the Organization with a known chance of being included in
the sample.

4. USES OF AN APPRAISAL SYSTEM

A properly designed performance appraisal system can (Rao, 1985):

 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.

5. ADVANTAGES OF PERFORMANCE APPRAISAL

It is said that performance appraisal is an investment for the company, which

can be justified by following advantages:

 Promotion: Performance Appraisal helps the supervisors to chalk out the

promotion programmes for efficient employees. In this regards, inefficient
workers can be dismissed or demoted in case.
 Compensation: Performance Appraisal helps in chalking out compensation
packages for employees. Merit rating is possible through performance appraisal.
Performance Appraisal tries to give worth to a performance. Compensation
packages, which includes bonus, high salary rates, extra benefits, allowances and
pre-requisites, are dependent on performance appraisal. The criteria should be
merit rather than seniority.
 Employees Development: The systematic procedure of performance appraisal
helps the supervisors to frame training policies and programmes. It helps to
analyze strengths and weaknesses of employees so that new jobs can be designed
for efficient employees. It also helps in framing future development programmes.
 Selection Validation: Performance Appraisal helps the supervisors to
understand the validity and importance of the selection procedure. The
 supervisors come to know the validity and thereby the strengths and weaknesses
of selection procedure. Future changes in selection methods can be made in this
regard.
 Communication: For an organization, effective communication between
employees and employers is very important. Through performance appraisal,
communication can be sought for in the following ways:
a. Through performance appraisal, the employers can understand and
accept skills of subordinates.
b. The subordinates can also understand and create a trust and confidence
in superiors.
c. It also helps in maintaining cordial and congenial labor management
relationship.
d. It develops the spirit of work and boosts the morale of employees.
e. All the above factors ensure effective communication.
 Motivation: Performance appraisal serves as a motivation tool. Through
evaluating performance of employees, a person’s efficiency can be determined
if the targets are achieved. This very well motivates a person for better job and
helps him to improve his performance in the future.
3.2. Data collection
Collection of data is the first step in statistics. The data collection process follows
the formulation for research design including the sample plan. The data can be secondary
or primary

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.

During the course of the study or research can be through observations or

through direct communication with respondents on one form or another or through
personal interviews. I have collected primary data by the means of a Questionnaire.
The Questionnaire was formulated keeping in mind the objectives of the research
study.

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.

1. The Standard Rating Scale

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.

It is useful to have employees rate themselves according to the same scale

standards that managers rate them. This helps both leadership and the employee see
gaps in performance understanding. As part of the self-assessment, ask employees
to set their own goals for the next month or quarter. This helps managers get buy-in
regarding goals from employees and also see what employee motivation is for bigger
success.

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".

SWOT ANALYSIS OF BSNL

Strength-

 Established organization with government support.

 Better coverage of network.
 Since they have large number of telephone exchanges, so that they can give
more stress on advertisement by their different place exchange
representatives.
 Very much transparent in billing for the satisfaction of all the subscribers,
no hidden system of billing.
 Customer care centers for better service in order to reduce the problem of
customer.

Weakness-

 Do not provide smooth service.

 Frequent network problem.
 Trade union problem.
 B.T.S disturbances.
 Reduce in sales and lack of advertisement.
 Lack of attraction like other providers.

Opportunity-

 The can modify their network & implement.

 They can use their huge human resources and fixed asset.
 Infrastructure is the best then any other service provider.

Threat-

 Increase in number of private telecom sectors.

 They are providing smooth and good network.
 They are establishing their own towers in remote corners.
 They are engaging contract services with less remuneration
1. Are the promotional policies well defined in BSNL?

24%
44%
Yes
No

32% Can't say

Response Number Percentage

Yes 22 56
No 16 32
Can’t say 12 24

Interpretation-

As per the guidelines from the personnel department employees are to be

promoted accordingly. However there is confusion among the employee as these
policies are not explained time to time, many are not aware of the existing promotion
policies. From the above chart, it can be seen that 56% respondents are agree and
32% are disagree that promotion policies are well defined in the organization.
However, 24% were not able to say it, due to lack of information about the promotion
policies.
2. What is employee’s opinion as to present appraisal system followed in BSNL?

8% 12%

26%
Fully satisfied
Satisfied
Dissatisfied
54%
Can't say

Response Number Percentage

Fully satisfied 6 12
Satisfied 27 54
Dissatisfied 13 26
Can’t say 4 8

Interpretation –

As researcher’s aim is to study effectiveness of present appraisal system

followed by the organization. Respondent were asked about present appraisal system
followed by the organization. As shown in above chart, only 12% respondents are
fully satisfied and 54% are satisfied with the present appraisal system. In addition,
26% of employees are dissatisfied due to some problems. Therefore, this is a good
sign as increased level of satisfaction is the main emphasis of any appraisal system.
3. What is employee’s opinion as to the purpose of performance appraisal system is to
fulfill performance standards/ yardsticks.

46%

54% Yes

No

Response Number Percentage

Yes 27 56
No 23 44

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

Response Number Percentage

Fortnight 0 0
Monthly 3 6
Annually 42 79
Not fixed 8 15

Interpretation-

Performance appraisal review is a constant process and lesser the frequency

between the appraisals, the better. The employees say that the longer the frequency
between appraisals, the more the chances of the appraisal not matching up to their
expectations because many performances are overlooked. If the appraisal is done on
a more frequent basis, the employee has a chance to find out the gaps in his / her
performance on a more regular basis, which will help them to improve more on their
performance and thereby eliminate waste. As shown in above chart, 79% of
respondents say appraisal done annually in the organization. !5% say not fixed.
5. Who appraises you?

0% 0%

4% 12% Appraisal committee

6% Superior
46%
Immediate superior
Self-appraisal
32% Peer
All of the above
Any other

Response Number Percentage

Appraisal committee 0 0
Superior 23 46
Immediate superior 16 32
Self-appraisal 3 6
Peer 2 4
All of the above 6 12
Any other 0 0

Interpretation-

Immediate supervisor is the most appropriate candidate to appraise the

performance of her and his subordinates because No one is more familiar with
subordinate’s performance and superior has responsibility of managing aparticular
unit. So, as shown in above chart, 46% of the respondents say that their superior
appraised them which is a good indication for the organisation. 32% respondents say
immediate superior.
6. What method is being used for performance appraisal in BSNL?

Forced choice
2%
distribution
4% Essay method
14%
Ranking method
16%
Critical incident
method
4% Paired comparison
58%
360 degree appraisal
2%
Any other

Response Number Percentage

Forced choice distribution 1 2
Essay method 2 4
Ranking method 29 58
Critical incident method 2 4
Paired comparison 1 2
360 degree 8 16
Any other 7 14

Interpretation-

For appraising performance of the employees it is very important to determine

the method of evaluation. Numerous methods have been devised to measure the
quantity and quality of employee’s job performance. As shown in above chart, 58%
of respondents say that ranking method is used in BSNL for performance evaluation
of employees. This is a simple method and it is impractical for large groups. While
16% respondents say 3600 appraisal used to evaluate performance of the employees.
7. In your opinion, does it identify training needs?

4% 12%
32%
To a large extent

To a some extent

Can't say
52%
Not at all

Response Number Percentage

To a large extent 16 32
To some extent 26 52
Can’t say 2 4
Not at all 6 12

Interpretation-

The systematic procedure of performance appraisal helps the supervisors to

frame training policies and programmes. As shown in above chart, 52% of
respondents are agree that performance appraisal system followed in BSNL is
identify the training needs to some extent and 32% say to a large extent so, according
to this it is clear that the training and future development programmes in the
organization takes place according to performance appraisal.
8. Is the promotional policies are linked with the performance appraisal system.

4%
36%
Yes

No
60%
Can't say

Response Number Percentage

Yes 18 36
No 30 60
Can’t say 2 4

Interpretation –

A promotion may be defined as an upward advancement of an employee in an

organization to another job, which commands better pay/wages, better status and
higher opportunities and responsibility, a better working environment, and facilities,
etc. Performance Appraisal is the systematic evaluation of the performance of
employees according to which promotion and demotion given to the employees. As
shown in chart, 60% of respondents say that the promotion policies in BSNL are not
linked with performance appraisal.
9. Does the appraisal help you in polishing skills & performance area?

26%

50%
Yes
No
24% Somewhat

Response Number Percentage

Yes 25 50
No 12 24
Somewhat 13 26

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

Response Number Percentage

Yes 23 46
No 15 30
Can’t say 12 24

Interpretation-

Performance appraisal provide an opportunity to each employee for self-

reflection and individual goal setting, so that individuals goals aligning with those
of organization. Respondent were asked that the appraisal system help them to
aligning their goals with those of organization. As shown in above chart, 46% of
respondents say yes and 30% give negative response.
11. Does personal bias creeps-in while appraising an employee.

16%

Yes
No
84%

Response Number Percentage

Yes 8 16
No 42 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

Response Number Percentage

Always 43 86
Often 3 6
Only when required 4 8
Rarely 0 0
Never 0 0

Interpretation –

Providing feedback to the employees play a constructive role in the

organization. It helps the employee to know his / her weakness and strengths.
Feedback provides for area of improvement. The feedback should be given with a
positive attitude as this can have an effect on the employee’s future performance.
Respondents were asked about the frequency of feedback based on their
performance. 86% respondents say that they get feedback always. In addition, the
frequency of feedback is good to keep the individual motivated for work in line with
the organization expectations.
13. Does the organization provide counselling after appraisal?

0%

16% 4%
Always
32%
Often
Rarely
Never
48%
Can't say

Response Number Percentage

Always 0 0
Often 2 4
Rarely 16 32
Never 24 48
Can’t say 8 16

Interpretation-

It is a very important task of organization to provide counseling to the

employees after appraisal. The counseling should be given with a positive attitude
as this can have an effect on the employee’s future performance. The purpose of
counseling should be to solve the problems faced and motivate the employee to
perform better. When respondents were asked that organisation provide counseling
to employees after appraisal 48% respondents say never, and it is not good.
14. What kind of remedial measures are taken by organization after appraisal?

38%
46% Job rotation
Sent to training programs
Counselled
4% 12% Any other

Response Number Percentage

Job rotation 19 38
Sent to training programs 6 12
Counseled 2 4
Any other 22 46

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

Response Number Percentage

Outstanding 2 3
Very good 13 20
Good 27 41
Satisfactory 23 35
Poor 1 1

Interpretation-

Performance appraisal system plays an important role in firm’s competitive

strengths. The evaluation system helps in identify employees with potential, reward
performance equitably and determine employees need for training. Specifically,
performance appraisal helps an organization gain competitive edge. Therefore, the
appraisal system of an organization should be excellent and fulfil expectations of
their employees. As shown in above chart, 20% respondents say that the appraisal
system of BSNL is very good and 41% say it is good.
4. Findings

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.

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. 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. Maximum
of respondents are not satisfied with their performance appraisal system. It is suggested to
consider the current appraisal system and there is a need for improvement. Consistent and
equitable system of rewards can be formulated. Opportunities for promotions and
advancement must be adequately provided for further up-liftmen of employees.
5. Conclusion

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:

1. The very concept of performance appraisal should be marketed throughout the

organization. Unless this is done, people would not accept it, be it how important
to the organization.
2. To market such a concept, it should not start at bottom; instead, it should be
started by the initiative of the top management. This would help in percolating
down the concept to the advantage of all, which includes the top management as
well as those below them. This means that the top management has to take a
welcoming and positive approach towards the change that is intended to be
brought.
3. Further, at the time of confirmation also, the appraisal form should not lead to
duplication of any information. Instead, detailed appraisal of the employee’s
work must be done – which must incorporate both the work related as well as the
other personal attributes that are important for work performance.
4. It should be noted that the appraisal form for each job position should be different
as each job has different knowledge and skill requirements. There should not be
a common appraisal form for every job position in the organization.
5. If greater amount of objectivity can be infused into the appraisal system, it can
help to bring more transparency.
6. The job and role expected from the employees should be decided well in advance
and that too with the consensus with them.
7. A neutral panel of people should do the appraisal and to avoid subjectivity to a
marked extent, objective methods should be employed having quantifiable data.
8. The time period for conducting the appraisal should be revised, so that the
exercise becomes a continuous phenomenon.
9. Transparency into the system should be ensured through the discussion about the
employee’s performance with the employee concerned and trying to find out the
grey areas so that training can be implemented to improve on that.
7. Bibliography

[1] Human Resource Management by K. Aswathappa.

[2] Human Resource Management by V.S.P Rao
[3] Robert D. Bretz Jr.George T. Milkovich, “The current state of Performance Appraisal
Research and Practice “.
[4] Arora P.N and Arora .S “Statistics for Management”, “First Edition Chard’s & company
ltd”. New Delhi 2008]
[5] Janice S. Miller, Robert L. Cardy, “Self-monitoring and performance appraisal".