PROJECT REPORT

ON

“PERFORMANCE APPRAISAL OF BSNL”

SUBMITTED IN THE PARTIAL FULFILLMENT OF THE REQUIREMENTS

FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION

SESSION: 2017-2019

SUBMITTED TO: SUBMITTED BY:

MS. PRAGYATI KAPOOR HARSH RAI
ASSISTANT PROFESSOR MBA 4TH SEM
1703104107

UNIVERSITY SCHOOL OF MANAGEMENT STUDIES

RAYAT BAHRA UNIVERSITY, MOHALI

1
 DECLARATION BY THE STUDENT

This is to state that the project titled “performance appraisal of BSNL” is based on original work
carried out by me and is being submitted towards partial fulfillment of the MBA programs of
the RAYAT AND BAHRA UNIVERSITY. This has not been submitted for the award o any
degree or diploma.

HARSH RAI
 PREFACE
The final project- is an integral part of the course curriculum of MBA. It is one of those very
courses that offer an opportunity to the students to get a feel of the jobs that they would be doing
once they passed out from there institute. Besides, the students gain practical experience and are
exposed to the outer world.

The first experience of this practical kind is provided by summer training which student are
required to undergo in an organization but in the final project the student in a position to analyze
the internal working of an organization with mature eyes and can understand the dynamics in
much better manner. The student of this project is to identify the effective and efficient working
of performance appraisal in the BSNL Company.

THANKS
 ACKNOWLEDGEMENT

It is well-established fact that behind every achievement lays an unfathomable sea of gratitude to
those who have extended their support and without whom the project would never have come
into existence.

I express my gratitude to RAYAT BAHRA UNIVERSITY ,MOHALI for providing me an

opportunity to work on this thesis as a part of the curriculum.

Also, I express my gratitude to MS. PRAGYATI , (Assistant.Prof.) who as my college guide

was a constant source of inspiration and encouragement to me . The strong interest evinced by
them has helped me in dealing with the problem; I faced during the course of project work on the
completion of my project.
 TABLE OF CONTENTS

CONTENT PAGE NO.

Title page 2
Declaration

Certificate 3

Acknowledgement 4

Executive summary 6-19

Introduction 20-48

Performance appraisal process at Reliance HR Services private

Ltd.

Research Methodology 49-58

Analysis &Interpretation 59-70

Limitation 71

Suggestion 73-75

Conclusion 75

Bibliography 76

Appendix 77
 EXECUTIVE SUMMARY

 Most organizations have a performance appraisal (PA) program that has evolved over time and is
likely not meeting the needs of employees and managers.
 Many competing PA theories and practices exist making development of an effective program
difficult. However, done well, a strong PA program reinforces organizational culture and helps
employees achieve high levels of performance.
 An effective PA program can improve key business measures such as Return on Assets, Return
on Equity, profit margins and earnings.
 Every strong PA program has three elements: performance tracking, informal feedback, and
formal appraisal.
 Buildonthesethreeelementstocustomizeyourprogramtoyourorganization‟sgoalsand values:
o Informal coaching is the single most significant factor in easing retention and developing talent.
o Forced ranking and forced distribution are techniques that work well in competitive
environments. Avoid them in team-based departments.
o 360-degree evaluations help to improve people management abilities. Stay away from
using them for manager compensation or disciplinary purposes.
COMPANY PROFILE
 INTRODUCTION

TYPE COMMUNICATION SERVICE PROVIDER

AVAILABILITY COUNTRYWIDE

OWNER GOVERNMENT OF INDIA

KEY PEOPLE CHAIRMAN &DIRECTOR-RAJESH KUMAR UPADHYAY

FOUNDED 19TH CENTURY, INCORPRATED IN 2000

WEBSITE WWW.BSNL.IN
1.1 OVERVIEW OF THE BSNL:

BSNL is India's oldest and largest Communication Service Provider (CSP). Currently BSNL has
a customer base of 64.8 million (Basic & Mobile telephony). It has footprints throughout India
except for the metropolitan cities of Mumbai and New Delhi which are managed by
MTNL.AsonMarch31,2007 BSNL commanded a customerbaseof33.7millionWireline,
3.6millionCDMA-WLLand27.5millionGSMMobilesubscribers.BSNL'searningsforthe

Financial Year ending March 31, 2006 stood at INR 401.8b (US$ 9.09 b) with net profit of INR
89.4b (US$ 2.02 billion). Today, BSNL is India's largest Telco and one of the largest Public
Sector Undertaking of the country with authorized share capital of US$ 3.95 billion (INR 17,500
Crore) and net worth of US$ 14.32billion.
PROFILE OFORGANISATION:

 OVER VIEWS OFORGANISATION HISTORY:-

The foundation of Telecom Network in India was laid by the British sometime in 19thcentury.
The history of BSNL is linked with the beginning of Telecom in India. In 19th century and for
almost entire 20th century, the Telecom in India was operated as a Government of India wing.
Earlier it was part of erstwhile Post & Telegraph Department (P&T). In 1975 the Department of
Telecom (DoT) was separated from P&T. DoT was responsible for running of Telecom services
in entire country until 1985 when Manager Telephone Nigam Limited (MTNL) was carved out
of DoT to run the telecom services 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 telecom sector was opened up by the Government for Private
investment, therefore it became necessary to separate the Government's policy wing from
Operations 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 a public
sector.

“MAIN SERVICES BEING PROVIDED BY BSNL”

BSNL provides almost every telecom service, however following are the main Telecom

Services being provided by BSNL in India:-

1. UNIVERSAL TELECOM SERVICES: Fixed wire line services & Wireless in Local loop
(WLL) using CDMA Technology called bfone and Tarang respectively. BSNL is dominant
operator in fixed line. As on March 31, 2007 (end of financial year) BSNL had 76% share of
fixed and WLLphones.

BSNLMOBILE PRE-PAID MOBILE

2. CELLULAR MOBILE TELEPHONE SERVICES: BSNL is major provider of Cellular

Mobile Telephone services using GSM platform under brandname Cellone. Pre- paid Cellular
services of BSNL are know as Excel. As on March 31, 2007 BSNL had 17% share of mobile
telephony in the country.

BSNL Broadband

3. 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 financialyear.
4. Intelligent Network (IN): BSNL is providing IN services like televoting, toll free calling,
premium calling etc.

 BSNL PRESENT &FUTURE

Since its corporatization in October 2000, BSNL has been actively providing Connections in
both Urban and Rural areas and the efficiency of the company has drastically improved from the
days when one had to wait for years to get a phone connection to now when one can get a
connection in even hours. Pre-activated Mobile connections are available at many places across
Country. BSNL has also unveiled very cost-effective Broadband internet access plans (Data
One) targeted at homes and small businesses. At present BSNL enjoy's 47% of market share of
ISP services.

Year of Broadband 2007

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. This 2 Mbit/s broadband service is being
provided by BSNL at a cost of just US$ 5.5 per month. Further, BSNL is planning to upgrade its
broadband services to Triple play (telecommunications) in2007.

BSNL has been asked to add 108 million customers by 2010 by Former Indian Communications
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 Telephony in India. BSNL has recently bagged 80% of US$ 580 m
(INR 2,500 crores) Rural Telephony project of Government of India.

CHALLENGES:-

During Financial Year 2007-2008 (From April 01, 2006 to March 31, 2007) BSNL has
added 9.6 million new customers in various telephone services taking its customer base to 64.8
million. BSNL's nearest competitor Bharti Airtel is standing at a customer base of 39 million.
However, despite impressive growth shown by BSNL in recent times, the fixed line customer
base of BSNL is declining. In order to woo back its fixed-line customers BSNL has brought
down long distance calling rate under One India plan, however, the success of the scheme is not
 the CMD BSNL. 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 lot of
criticism for its poor customer service. Although in recent past there have been tremendous
improvement in working of BSNL but still it is much below the Industry's Expectations. A large
aging (average age 49 years (appx)) workforce (300,000 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 organisation. Although in coming years the retirement profile of
the workforce is very fast and around 25% of existing workforce will retire by 2010, however,
still the workforce will be quite large by the industry standards. Quality of the workforce will
also remain anissue.

Access Deficit Charges (ADC, a levy being paid by the private operators to BSNL for provide
service in non-lucrative areas especially rural areas) has been slashed by 37% by TRAI, w.e.f.
April 01, 2007. The reduction in ADC may hit the bottom-line of BSNL.

VISION

• To become the largest telecom ServiceProvider.

MISSION

 To provide world class State-of-art technology telecom services toits

 Customers on demand at competitiveprices.
 To Provide world class telecom infrastructure in its area of operation andto Contribute
to thegrowth.

OBJECTIVE:-

 MP Telecom looks over the management, control and operation of thetelecom

 network with the following aims and objective
 To build a high degree of customer confidence by sustaining quality and
reliability in service.
 To upgrade the quality of telecom service to international level.
 Provision of telephone connections on demand in all the villages ofM.P.
 Expansion of new services like Internet, Intelligent Network, ISDN, Internet Telephony,
Video Conferencing, Broadband etc.
 Popularize Broadband Services and to be on-demand in the whole State.

 Expansion of Cellular Mobile Telephone to all towns.

 To open Internet Kiosks (Cafe's) at all Block Head Quarters.
 To improve the quality of present services being given to the subscribers.
 To open more Customer Service Centers and upgrade the existing Customer Service Centers for
better and friendly Customer care.
 Modernize PSTN network by making RSUs &AN-RAX.
 Plantation of Trees to make environment Clean &Green.
 To raise necessary financial resources for its developmental needs.
 To increase accessibility of services, by providing a large number of Local and NSD/ISD
Public Call Offices (PCOs) so as to reach out to the masses.

Products

• BSNLLANDLINE

• BSNLMOBILE
_ POSTPAID
_ PREPAID
_ UNIFIED MESSAGING
_ GPRS/WAP/MMS
_DEMOs
_TARIFF
• BSNL WLL
• INTERNETSERVICES
_ NETWORK
_ BROADBAND
_ WI-FI
_ CO-LOCATION SERVICE
_ BSNL WEB HOSTING
_ DIAL UP INTERNET

_ SMS& BULK SMS

• BSNLBROADBAND
• BSNL MANAGED NETWORKSERVICES
• BSNLMPLS-VPN
• ISDN
• LEASEDLINE
 SWOT Analysis

(Strength / Weakness/ Opportunities / Threats)

● Strength

The telecom sector is poised for continued high growth and our company is well placed to
benefit from this phenomenon. BSNL is the largest telecom operator providing all kind of
telecom services throughout the country. The widest network reach of the company is its USP.
● Weakness

BSNL being Government Company has no any major weakness in the business.

● Opportunities

Having biggest infrastructure provider it is easy for company to enter into any area. BSNL has
vast range of product as well as better infrastructure it makes the to deal with any kind of
customer. Dealing in urban area now it has also opportunities in rural area.
● Threats

The company operates in an industry, which is highly competitive and faces intense Competition
from other service provider, who enjoy certain advantages in their Procurement as well as in
selection of technology.
BSNL have several regional offices to localize

its operations in India

REGIONAL OFFICES OF
BSNL

DEHRADUN MEERUT

DELHI
LUCKNOW
INTRODUCTION
PERFORMANCE APPRAISAL

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

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

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

Performance appraisal is a systematic appraisal of the employee‟s personality traits and

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

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

individual with respect to his or her performance on the job and his or her potential for
development
“Performance appraisal is a formal structured system of measuring and evaluating an
employee’s job, related behaviors and out comes to discover how and why the employee is

presently performing on the job an how the employee can perform effectively in the future so
that the employee, organization and society all benefit.”

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

COMPONENTS OF APPRAISAL EVALUATION

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

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

“WHO”

The appraisal can be accomplished by one or more individuals involving a combination of the
immediate supervisor, a higher level manager, a personal manager, the assessee‟s peers, the
assessee himself and the assessee‟s subordinates.

Usually the immediate supervisor must be interested with the task of rating the assessee because
he his most familiar with his work, and because he is also responsible for recommending or
approving personal action based on the performance appraisal. The staff specialists, i.e. the
personal officer also do appraisal.

They may advise the supervisor while evaluating their subordinates stressing the need for
evidence for making specific appraisal judgments and comparing a particular subordinate‟s
evolution with those ofothers.
 The appraisal of an individual may also be done by his peers such appraisal proves effective
in predicting future management success.

This approach has its disadvantage that the individual may rate himself excessively high then it
would be if his superior rated him. Many companies use rating committees to evaluate
employees. These committees consist of supervisors, peers, and subordinates.

“WHAT”

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

“WHY”

The “why” of an appraisal is concerned with –

a) Creating and maintaining a satisfactory level of performance of employees in there present jobs.
b) Highlighting employee needs and opportunities for personal growth anddevelopment.
c) Promoting understanding between the supervisor and hissubordinates.
d) Providing a useful criterion for determining the validity of selection and training methods and
techniques and forming concrete measures for attracting individual of higher caliber to
theenterprise.

“WHEN”

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

The where indicates the lo0cation where an employee may be evaluated. It is usually done at the
place of work or office of the supervisor.

“HOW”

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

PURPOSE OF PERFORMANCE APPRAISAL

 To create and maintain a satisfactory level ofperformance.

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

WHAT SHOULD BE RATED

The seven criteria for assessing performance are:

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

OBJECTIVE OFPERFORMANCE APPRAISAL

 A good performance appraisal has followingobjectives:-

 Help employee to Krishak Bharti Coperative Ltd. His weaknesses, and improve
his strengths, and thus enable him to improve his performance and that of thedepartment.
 Generate adequate feedback and guidelines from the reporting officers to
theemployee.
 Contribution to the growth and development of the employee thru helping in
realistic goal setting
 Help identifying employees for the porpoise of motivating, training
and developingthem.
 Generate significant relevant, free and valid information about employees thus good
performance appraisal and review system should primarily focus on employeedevelopment
 METHODS OF APPRAISAL

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

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

 Future –oriented:
 Management by objectives
 Psychological appraisals
 Assessment center

METODS OF PERFORMANCE APPRAISALS

Past Oriented Methods

 Rating scales:
This is the simplest and the most popular technique for employee performance. The typical
 rating – scales system consists of several numerical scales, each representing job related
performance criterion such as dependability, initiative output, attendance, attitude, co-operation
and the like. Each scales ranges from excellent to poor. The rater checks the appropriate
performance level on each criterion, and then computes the employees total numerical scores.
 Checklist:
In this method, the raters don‟t evolutes employee performance, he supplies reports about it and
the personal department does the final rating a series of question are presented concerning and
employee to his behavior. The rater, then, to indicate if the answer to a question about an
employee in positive or negative. Generally , the questions are on yes/nopattern.

 Forced choice method:

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

 Critical incident method

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

 Behaviorally Anchored Rating Scales

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

 Field review method

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

 Annual confidential report method

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

 Easy method
In the essay method, the rater must describe the employee with in a number of broad categories
such as-
a) The rater‟s overall impression of the employee‟sperformance
b) The promotability of theemployee
c) The jobs that the employee is now able or qualified toperform
d) The strength and weaknesses of the employee and the traning and the development
assistant required the employee.
 Comparative Evolution Approaches
Theseareacollectionofadifferentmethodsthatcompareoneworker‟sperformancewith that his / her
co-workers. Supervisors usually conduct comparative appraisals. As these appraisals can results
in a ranking from best to worst they are useful on deciding merits- pay increases promotions and
organizational rewards. We can classify itinto-
a) Ranking method
In this, the superior his or her subordinates in the order of there merits starting from the best to
the worst,. This method is subject to the hallo and Recency effects, although ranking by two or
more raters can be averaged to help reduce biases. It advantages include ease of administration
and explanation.
b) Paired – Comparison method:-
 Under this method the appraiser compares each employee with every other employee, one at a
time. The number of comparisons may be calculated with the help of formula, which reads thus-:
N (N-1)/2

360 DEGREE PERFORMANCE APPRAISAL

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

2. Peers:-
Peer appraisal may be reliable if the work group is stable over a reasonably long period of
time and perform tasks that require integration.

3. Subordinates:-
The concept of having superiors rated by
subordinates is being used in most organizations today especially in developed countries. Such a
novel method can be useful in other organizational settings too provided the relationship between
superiors and subordinates are coordinal.

4. Self-Appraisal:-
In individuals understand the objective they are expected to achieve and the standard by
which they are to be evaluated, they are to a great extend in the best position to appraise their
ownper formance.
5. Users of Service Customers:-
Employee performance in service organization relating to behaviors, promptness, speed in
doing the job and accuracy, can be better judged by the customers or users of services.

6. Consultants:-
Sometimes consultants may be engaged for appraisal when employees or employers not trust
supervisor and management does not trust the self-appraisal a peer appraisal or subordinate
appraisal.

KEY ELEMENTS OF PA SYSTEMS

1) Performance Improvement:-
Performance feedback allows the employee, manager, and personnel specialists to
interview with appropriate action to improve performance.
2) Compensation Adjustments:-
Performance evaluations help decision – makers determine who should receive pay raises.
Many firms grants part or all of their pay increase and bonuses based upon merit, which is
determine mostly through performance appraisal.
3) Placement Decisions:-
Promotions, transfers, and demotions are usually based on past on anticipated
performance.
4) Training and Development Needs:-
Poor performance may indicate the need for retraining. Likewise, good performance
indicate untapped potential that should be developed.

5) Career Planning And Development:-

Performance feedback guides career decisions about specific career paths.
6) Information Inaccuracies:-
Poor performance indicate errors in job analysis information‟s human resource plan, or
other parts, or the personal management information‟s systems. Reliance on inaccurate
information may have led to inappropriate hiring, training, or counseling decisions.
7) Job Decision Errors:-
Poor performance may be a system of ill-conceived job designs. Appraisals help diagnose
these others.
8) Equal Employment opportunity:-
Accurate performance appraisals that actually measure job- related performance ensure
that internal placement decisions are not discriminatory.
9) Feedback to human resource:-
Good/bad performance throughout the organization indicate how well the human resource
function is performing.
 STAGES OF PERFORMANCE APPRAISAL PROCESS

• PERFOMANCESTANDEARDSAREESTABLISHED
1

• INFORM THESESTANDARDS
2

• INSTRUCTION GIVEN
FORAPPRAISAL 3

• FINDIND OUT
THEINFLUENCE 4

• COMPARING THEPERFORMANCE
5

• FINDING OUTDEVIATION
6

• COMMUNICATING,THEACTUALPERFORMANCE
7

• SUGGESTING
NECESSARYCHANGES 8

• FOLLOW-UPOFPERFORMANCEAPPRAISALREPORT
9

Performance Appraisal is a Nine-Step Process:-

 At the First stage, performance standards are established based on job description and job
specification. The standard should be clear, objective and incorporate all thefactors.
 The Second stage, is to inform these standards to all the employees includingappraisers.
 The Third stage is following the instruction given for appraisal measurement of employee
performance by the appraisers through observations interview, records and reports
 The Fourth stage is finding out the influence of various internal and external factors on
actualperformance.
 The Fifth stage is comparing performance with that of other employee and previous
performance.
 The Sixth stage is comparing the actual performance with the standards and finding out
deviations.
 The Seventh stage is communicating, the actual performance of the employee and other
employees doing the same job and discuss with him the reasons for positive or negative
deviations from the preset standards as the case maybe.
 The Eighth stage is suggesting necessary changes in standards, job analysis internal and
externalenvironment.
 The Ninth stage is fallow up performance appraisal report. This stage includes guiding,
counseling coaching and directing the employee or making arrangements for the training and
development of theemployee.

PROBLEMS OF PERFORMANCE APPRAISAL

The major problem in performance appraisal :-

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

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

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

 The Error Central Tendency:-

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

 The leniency and Strictness:-

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

d) Personal Prejudice :-

If the rater dislike any employee or any group, he may rate them at the lower them which
may distort the rating purpose affect the career of these employee.

 The RecencyEffect:-

The raters generally remember the recent actions of the employee at the time of
rating and rate on the basis of this recent action.

1) Favorable or unfavorable rather than on the whole activities.

2) Failure of the superior in conducting performance appraisal and post
performance appraisal interview.
3) Most part of the appraisal is based on subjectivity.
4) Less reliability and validity of the performance appraisal technique.
5) Negative ratings affect interpersonal relations system.

WHY APPRAISAL TECHNIQUES PROVE FAILURE

Performance appraisal techniques techniques have often failed to give a correct assessment of the
employee. The causes of such failure are:-

1) The supervisor plays dual and conflicting role of the both the judge and thehelper.
2) Too many objectives often causeconfusion.
3) The supervisor feels that subordinate appraisal is notrewarding.
4) A considerable time gap exist between two appraisalprograms.
5) The skills required for daily administration and employee development are inconflict.
6) Poor communication keeps employees in the dark about what is expected ofthem.
7) There is the difference of opinion between a supervisor and a subordinate concerning the
liter‟sperformance.
8) Feedback on appraisal is generally unpleasant for both supervisor andsubordinate.
9) Unwillingness on the part of supervisor to tell employee plainly how to improve
their performance.

About Employee:-

 Safe and Friendly Work Environment-:

What sort of environment are you providing your employees.

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

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

 Employee Happiness-:

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

The research design of this project is exploratory. Though each research study has its
own specific purpose but the research design of this project on BSNL is exploratory in nature as
the objective is the development of the hypothesis rather than their testing. The research designs
methods of financial analysis. Through of comparative balance sheet in comparative statement, I
am studying on balance sheet of BSNL of five year. So taking comparative statement, I am going
to analyzed of five years balance sheet of BSNL

METHODOLOGY

Every project work is based on certain methodology, which is a way to systematically

solve the problem or attain its objectives. It is a very important guideline and lead to completion
of any project work through observation, data collection and data analysis.
“Research Methodology comprises of defining & redefining problems, collecting,
organizing & evaluating data, making deductions & researching to conclusions.”

- Clifford Woody

RESEARCH DESIGN

Research Design refers to "framework or plan for a study that guides the collection and analysis
of data". A typical research design of a company basically tries to resolve the following issues:

a) Determining Data Collection Design

b) Determining Data Methods

c) Determining Data Sources

d) Determining Primary Data Collection Methods

e) Developing Questionnaires

f) Determining Sampling Plan

(1) EXPLORATIVE RESEARCHDESIGN:

Explorative studies are undertaken with a view to know more about the problem. These studies
help in a proper definition of the problem, and development of specific hypothesis is to be tested
later by more conclusive research designs. Its basic purpose is to identify factors underlying a
problem and to determine which one of them need to be further researched by using rigorous
conclusive research designs.

(2) CONCLUSIVE RESEARCHDESIGN:

Conclusive Research Studies are more formal in nature and are conducted with a view to
eliciting more precise information for purpose of making marketing decisions.

These studies can be either:

a) Descriptive or

b) Experimental

Thus, it was mix of both the tools of Research Design that is, Explorative as well as Conclusive.

SAMPLING PLAN:

Sample Size = 50 Employees Sample Area = BSNL lucknow

Utter Pradesh Duration = 6 weeks

 RESEARCH PROBLEM

I have selected that PERFORMANCE APPRAISER as research problem for my summer

training project.

As a research problem is the situation that causes the researcher to feel apprehensive,
confused and ill at ease. It is the demarcation of a problem area within a certain involving the
WHO or WHAT the WHERE the WHEN and the WHY of the problem situation.

RESEARCH OBJECTIVE

How productivity relates with performance appraisal. In addition, the major factors of
performance appraisal, which have taken a part in increasing productivity of the organization.

RESEARCH INSTRUMENT USED

 QUESTIONNAIRE:

The term questionnaire usually refers to a self administered processes whereby he

respondent himself read the question and records without the assistance of aninterviewer.

 INTERVIEW:

The interview method of collection data involves presentation of oral- verbal

stimuli and reply in terms of oral-verbal response.
 EXPLORATORY RESEARCH

Exploratory research studies are also termed as formulating studies. The main purpose of such
studies that of formulating of the problem for more precise investigation or of developing the
working hypotheses from an operational point of view. An exploratory research focuses on the
discovery of ideas and is generally based on secondary data. It consists:

 Search of secondary data and literature

 Survey

SEARCH OF SECONDARY DATA AND LITERATURE :

The quickest and most economical way is to find possible hypotheses from the available
literature. The past research may be suitable may suitable sources of information to develop new
hypotheses. The researcher can search them for his research purpose.

SURVEY REPORT:

Survey means the survey of people who have had practical experience with the problem to be
study. These individual can be top executives, sales manager, wholesaler and retailer processing
valuable knowledge and information about the problem environment.

RESEARCH INSTRUMENTS USED:

I have used the following research instrument in my project :-

 QUESTIONNAIRE-:

The term questionnaire usually refers to a self – administered process whereby the respondent
himself read the question and records without the assistance of an interviewer.

 INTERVIEW-:
The interview method of collection data involves presentation of oral-verbal stimuli and reply in
terms of oral- verbal response.

SAMPLING TECHNIQUE USED

When field studies are under are under taken in practical life, consideration of time cost and
some other factors almost invariably lead to selection of respondents. The selected respondents
constitutes a sample and the selection process is called samplingtechnique.

A sample design is define plan determined before any data are actually collected for obtaining a
sample from a given population. Sample can be either probability sample or non probability
sample.

I have selected simple random samplingin my project.

SIMPLE RANDOM SAMPLING:

This type of sampling is also known as chance sampling or probability sampling where each item
in the population has an equal chance of being selected in the sample.
 SAMPLE SIZE:

When a survey is undertaken and when it is not possible to cover the entire population the
researcher has to answer the basic question – how large should be sample be ? the sample size
decision is related directly to research cost.
The intended sample size is the number of participants planned to be included in
the trial, usually determined by using a statistical power calculation. The achieved sample size is
the number of participants enrolled, treated , or analyzed in the study.

I have taken 50 people in my sample size as the sample size should be neither so small nor so
large.

METHOD USED FOR DATA COLLECTION

The task of data collection begins after a research after a research problem has been defined and
research design chalked out. While deciding about the method of data collection to be used for
the study the researcher should keep in mind two types of data-:

1) Primary Data
2) Secondary Data

1. PRIMARY DATA

Those data that have been observed and recorded by the researcher for the first time in their
knowledge.

Sources:

 Questionnaire
 Interview method
2. SECONDARYDATA:

Those data that have been compile by some agency other than user.

Sources:
 Company profile
 Magazine
 Internet
 Books
 Previous report

ANALYTICAL TOOLS USED

The term analysis refers to the computation of certain measures along with searching for pattern
of relationship that exists among data group. Analysis is essential for a scientific study and for
ensuring that we have all relevant data for making contemplated comparison. Therefore , I have
used Tabulation, Graphs &charts in myproject.
 DATA
ANALYSIS
1. Are you aware of the objective of the performance appraisalsystem?

NO OF
OPTIONS PERCENTAGE
RESPONDENT(SAMPLE SIZE

50)

VERY MUCH 42 84%

SOME WHAT 7 14%

DON’T KNOW 1 2%

90

80

70

60

50

40

30

20

10

0 verymuch somewhat don'tknow

INTERPRITATION- 84% Employees are aware of the object of the performance appraisal
system.
2. Performance appraisal helps the organization in achieving goal.

NOS OF
OPTIONS PERCENTAGE
RESPONDENT(Sample
size 50)

YES 38 76%

NO 10 20%

DON’T KNOW 2 4%

8
0

7
0

6
0

5
0

4
0

ye n don'tkno

INTERPRITATION- 76% Employees say yes that performance appraisal helps the
organization in achieving goal.
3. Hold meeting in the beginning of the year to explain & clarify activity task & goals to be
achieved.

NOS OF
OPTIONS PERCENTAGE
RESPONDENT(Sample
size 50)

YES 39 78%

NO 11 22%

90

80

70

60

50

40

30
yes no

INTERPRITATION-: 78% Employees say that yes organized meetings helps goal
and task. While the other 22% employees that is not very muchhelpful.
4. Organization has to make a fixed duration for performanceappraisal.

NOS OF
OPTIONS PERCENTAGE
RESPONDENT(Sample
size 50)

YES 40 80%

NO 10 20%

90

80

70

60

50

40

30

20

10

0 yes no

INTERPRITATION -: 80% Employees agree with that is organization should have to make a
fixed duration for performance appraisal. While the other 20% employees do not agree with this
statement.
5. SatisfiedforpointallocationonthebasisofKRA‟s&managerialdimension.

NOS OF
OPTIONS PERCENTAGE
RESPONDENT(Sample
size 50)

FULLY SATISFIED 20 40%

SATISFIED 26 52%

DISSATISFIED 2 4%

UNCERTAIN 2 4%

60

50

40

30

20

10

0
fully satisfied satisfied dissatisfied uncertain

INTERPRITATION-: 40% Employees are fully satisfied for point allocation on

the basis of KRA‟s and managerial dimension.
6. Performance appraisal affects the working efficiency ofemployees.

NOS OF
OPTIONS PERCENTAGE
RESPONDENT(Sample
size 50)

YES 42 84%

NO 8 16%

90

80

70

60

50

40

30

20

10

0 yes no

INTERPRITATION-:84% Employees say that yes performance appraisal system affect the
working efficiency of employee. While the other 16% employees do not agree with
thisstatement.
7. Appraisal system is able to develop high result orientationapproach.

NOS OF
OPTIONS PERCENTAGE
RESPONDENT(Sample
size 50)

YES 47 94%

NO 3 6%

100
90

80

70

60
50

40

30

20

10
0
yes no

INTERPRITATION-: 94% Employees say that yes the appraisal system is able to develop high
result orientation approach. While the other 6% employees do not agree with us.
8. The systems will also contribution in potential appraisal.

NOS
OPTIONS O PERCENTAGE
F
RESPONDENT(Sample
size 50)
36 72%
YES
10 20%
NO
4 8%
DON’T KNOW

8
0

7
0

6
0

5
0

4
0

3
0
ye n don'tkno

INTERPRITATION-:72% employees think that the systems will also Contribution in potential
appraisal.
9. Promotion process in the organization is based on–

NOS OF
OPTIONS PERCENTAGE
RESPONDENT(Sample
size 50)

PERFORMANCE 2 4%

EXPERIENCE 6 12%

BOTH 42 84%

90

80

70

60

50

40

30

20

10

0 Performance experience both

INTERPRITATION-: 4% employees say that promotion says that process in the organization is
based on performance, 12% employees say that based on experience and 84% say both.
10 .The present performance appraisal system is transparent & Free frombias.

NOS OF
OPTIONS PERCENTAGE
RESPONDENT(Sample
size 50)

YES 42 84%

NO 8 16%

9
0

8
0

7
0

6
0

5
0

4
0
YE N

INTERPRITATION-: 84% Employees agree with this statement that

the present performance appraisal system is transparent and free from bias.
11 .Satisfied with the current performance appraisal system.

OPTIONS NOS OF RESPONDENT PERCENTAGE

(Sample size 50)

HIGHLY SATISFIED 27 54%

SATISFIED 18 36%

DISSATISFIED 1 2%

JUST SATISFIED 4 8%

60

50

40

30

20

10

0
Highly satisfied Satisfied Dissatisfied Just satisfied

INTERPRITATION-:54% Employees are highly satisfied with the current Performance

appraisal system. While 36% employees are satisfied with the current performance appraisal
system.
LIMITATIONS
 LIMITATIONS

A few limitations and constraints came in way of conducting the present study, under which
the researcher had to work are as follows:

Ø Although all attempts were made to make this an objective study, biases on the part of
respondents might have resulted in some subjectivity.

Ø Though, no effort was spared to make the study most accurate and useful, the “sample Size”
selected for the same may not be the true representative of the Company, resulting in biased
results.

Ø This being the maiden experience of the researcher of conducting study such as this, the
possibility of better results, using deeper statistical techniques in analyzing and interpreting data
may not be ruled out.
SUGGESTIONS

AND

CONCLUSION
 SUGGESTIONS

After having analyzed the data, it was observed that practically there was no appraisal in the
organization. To be an effective tool, it has to be on the continuous basis. This is the thing that
has been mentioned time and again 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
incorporates 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. The job and role expected from the employees should be decided well in advance and that too
with the consensus with them.

6. 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.

7. The time period for conducting the appraisal should be revised, so that the exercise becomes a
continuous phenomenon.
8. 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.

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. But, since a change in the system is
required, it cannot be a drastic one. It ought to be gradual and a change in the mindset of both the
employees and the head is required.
 BIBLIOGRAPHY

BOOKS-

Human Resource

- V.S.P Rao Research Methodology

- C. R.Kothari

- BSNL Manual
- Company Magazines

 Annual Report of Organization

 Internal Records of Organization

WEBSITES-
www.bsnl.net

www.bsnl.co.in
QUESTIONNAIRE
 QUESTIONNAIRE

(PERFORMANCE APPRAISAL SYSTEM AT B.S.N.L.)

Name…………………………………………………………………..
Designation……………………………………………………………
Department……………………………………………………………

1) Are you aware of the objective of the performance appraisal system?

a) Very much
b) Somewhat
c) Don’t know

2) Performance appraisal helps the organization in achieving goal?

a) Yes
b) No
c) Can’t say

3) Do you hold meeting in the beginning of the explain & clarify activity task & goals to be
achieved?

a) Yes
b) No

4) Should organization have to make a fixed duration for performance appraisal?

a) Yes
b) No

5) To what extent are you satisfied for point allocation on the basis of KRA’s &
managerial dimension?

a) Fully satisfied
b) Satisfied
c) Dissatisfied
d) Uncertain

6) Do performance appraisal affect the working efficiency of employee?

a) Yes
b) No

7) Whether the appraisal system is able to able to develop high result?

a) Yes
b) No

8) Do you think that the system wills also contribution in potential appraisal?

a) Yes
b) No
c) Can’t say

9) Promotion process in the organization is based on?

a) Performance
b) Experience
c) Both
10) Do you think that the present that the present performance appraisal system is transparent &
free bias?

a) Yes
b) No

11) Are you satisfied with the current performance appraisal system?

a) Highly satisfied
b) Satisfied
c) Just satisfied
d) Dissatisfied

Give your suggestion for the performance appraisal system in BSNL Lucknow..
………………………………………………………………………
………………………………………………………………………